Kotak Mahindra Bank has acquired the business loans portfolio from Barclays Bank plc India branch and Barclays Investment and Loan (India Ltd) for an undisclosed sum. The acquisition is in line with Kotak Bank’s strategy to add value to its existing business lines as it strengthens its business loan portfolio, Kotak Mahindra Bank said in a statement.
With this acquisition, Kotak Bank will gain access to about 6,000 business loan customers with a total loan outstanding of about Rs.700 crore.
All these acquired loans are classified as “standard loans” as per present RBI guidelines, Kotak Bank said.
“The strategic intent behind this acquisition is to further grow our business loan portfolio for chosen client segments. Business loans are an important element in our segmented offering. This acquisition also gives us a very good set of customers who can be offered our entire suite of banking products,” Paul Parambi, Head, Group Strategy, Kotak Mahindra Bank said.
We have an appetite for further acquisitions which can strategically create value for us and will actively seek such opportunities,” Mr. Parambi said.
Due to tough competition from local lenders Barclays had been planning to exit retail loan business in India.