Kotak Mahindra Bank announced today that it has completed the acquisition of Standard Chartered Bank India’s personal loan book for a total consideration of Rs 3,330 crore. The deal, initially proposed in late 2024, received all necessary regulatory approvals and fulfilled preconditions, paving the way for its closure.
In a stock exchange filing, Kotak Mahindra Bank confirmed the acquisition, stating, “After receiving the necessary regulatory approvals and fulfilling the relevant conditions precedent, the Bank has, today, i.e., on January 23, 2025, completed the aforesaid acquisition.”
This strategic move aligns with Kotak Mahindra Bank’s broader goal of strengthening its position in the retail lending segment. The acquisition is expected to enhance its market share and bolster growth in the lucrative ‘Salaried Affluent’ category.
“This transaction supports our Retail Assets growth strategy and reinforces our commitment to retail lending. It provides access to a high-quality customer base, and with Kotak Group’s successful integration track record, we are committed to a smooth transition,” said Ambuj Chandna, Head-Products, Consumer Bank, Kotak Mahindra Bank.
Standard Chartered Bank, on the other hand, emphasized that the decision to divest its personal loan portfolio is part of its strategy to focus on wealth management and investment banking services in India.
“Our decision to divest the personal loan book is in line with the Bank’s focus to accelerate growth in the wealth, affluent, and SME segments. India remains a key market for Standard Chartered, and we will continue to invest in our Wealth & Retail Banking (WRB) and Corporate & Investment Banking (CIB) businesses,” said Aditya Mandloi, Head – Wealth & Retail Banking, Standard Chartered Bank, India & South Asia.
The personal loan market in India has seen significant growth in recent years, driven by increasing consumer demand. However, the Reserve Bank of India has raised concerns over potential risks in the segment, prompting banks to allocate more capital for personal credit.
With this acquisition, Kotak Mahindra Bank strengthens its foothold in a competitive market, signaling its commitment to growth and innovation in the retail lending sector. Meanwhile, Standard Chartered Bank will sharpen its focus on high-value segments, ensuring a smooth transition for affected customers.