Kotak Mahindra Prime (Kotak Prime) will acquire the passenger cars and two-wheelers portfolio, and Kotak Mahindra Bank (KMBL) will acquire the commercial vehicles portfolio of VWFPL.
Kotak Mahindra Prime is a subsidiary of Kotak Mahindra Bank and is in the business of financing all passenger vehicles & two-wheelers.
With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around Rs 1,340 crore. All these acquired loans are classified as ?standard loans? as per the current Reserve Bank of India (RBI) guidelines. In addition to the ?standard loans?, Kotak has also acquired the non-performing assets portfolio of VWFPL.
D Kannan, group president - commercial banking, Kotak Mahindra Bank and director of Kotak Mahindra Prime, said, The strategic intent behind this acquisition is to further strengthen Kotaks vehicle financing loan portfolio and expand our market share.
VWFPL has been operating in the country since 2009 and during this time has built a strong customer portfolio. The long-term growth prospects of the Indian vehicle market are very attractive and this acquisition reinforces Kotaks standing as one of the leading vehicle financing players.?
Kotak Mahindra Bank is a full-service commercial bank. As on 30 June 2021, the bank has a national footprint of 1,612 branches and 2,591 ATMs, and branches in GIFT City and DIFC (Dubai).
The private sector bank reported a 32% increase in standalone net profit to Rs 1,641.92 crore on a 5% rise in total income to Rs 8,062 crore in Q1 FY22 over Q1 FY21.
The scrip advanced 0.64% to currently trade at Rs 1918 on the BSE.
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