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Kotak Mahindra group acquires vehicle finance business
September 17, 2021
Kotak Mahindra Bank on Thursday announced the acquisition of German carmaker Volkswagen’s captive vehicle finance business for an undisclosed sum.
The deal involves includes the private sector loan specialist’s in-house NBFC Kotak Mahindra Prime obtaining the traveler vehicle and bike portfolio, while Kotak Mahindra Bank Limited (KMBL) will secure the commercial vehicles portfolio from Volkswagen Finance (VF), as per an official statement.
Kotak will access more than 30,000 high-quality clients with an all-out credit outstanding with VWFPL of around ₹1,340 crores, the statement said, adding this load has been classified as ‘standard loans’.
Aside from this, the arrangement additionally includes the securing of VF’s non-performing assets, it said, without spelling out the size of the book.
The essential purpose behind this securing is to additionally strengthen Kotak’s vehicle financing loan portfolio and grow our piece of the pie, D Kannan, the bank’s group president for business banking, said.
He said VF, which had been in India since 2009, has built a strong portfolio and added that the drawn-out possibilities of the Indian vehicle market are very attractive.
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