Kotak Bank acquires ₹3,330 cr personal loan portfolio from Standard Chartered

Kotak Mahindra Bank said today that it had acquired the personal loan book of Standard Chartered India for ₹3,330 crore. The development comes following the private lender receiving all necessary approvals for the transaction.

“We now wish to inform you that, after having received the necessary regulatory approvals and upon fulfilment of the relevant conditions precedent, the Bank has, today, i.e., on January 23, 2025, completed the aforesaid acquisition. The aggregate size of the portfolio acquired is ₹3,330 crore,” Kotak Mahindra Bank said in an exchange filing today.

Kotak Mahindra Bank shares closed 1.28% lower at ₹1,893 on the NSE today.

Kotak Mahindra Bank had earlier said the high-quality loan book from Standard Chartered Bank allows it to build on its strength in the affluent segment and further reinforces its leadership in the retail lending space.

Kotak Mahindra Bank also aims to leverage its technology expertise and quality customer service to ensure a seamless transition for existing Standard Chartered Bank personal loan customers.

According to Ambuj Chandna, head-products, consumer bank, Kotak Mahindra Bank, India’s unsecured lending market offers significant growth potential for Kotak, especially in the higher-end segment. “Our strong risk management, customer-centric products, and technology-driven approach position us for sustainable growth.”

The transaction also supports the bank’s retail assets growth strategy and commitment to retail lending, he said. “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.”

According to Aditya Mandloi, head of wealth & retail banking, Standard Chartered Bank, India & South Asia, the decision to divest the personal loan book was in line with the bank’s focus to accelerate growth in the wealth, affluent and SME segments. It wants to focus on wealth & retail banking (WRB) and corporate & investment banking (CIB).

Kotak Mahindra Bank’s PAT for Q1FY25 stood at ₹6,250 crore, up 81% YoY from ₹3,452 crore in Q1FY24. The net interest income (NII) for Q1FY25 increased to ₹6,842 crore, from ₹6,234 crore in Q1FY24, up 10% YoY. The net interest margin (NIM) was 5.02% for Q1FY25.

For Q3FY25, Kotak Mahindra Bank reported a 10% growth in net profit to ₹4,701.02 crore, compared to ₹4,264.78 crore in the corresponding period last year. Sequentially, however, net profit declined by 7% from ₹5,044.05 crore in the September quarter of FY25.

The bank’s net interest income rose by 14.75% to ₹16,633.14 crore, compared to ₹14,494.96 crore in the corresponding quarter of the previous fiscal. On a quarter-on-quarter basis, interest income improved marginally from ₹16,426.97 crore in Q2FY25.