Kotak Mahindra Group has acquired the vehicle financing loan portfolio of Volkswagen Finance, the two said in a statement on Thursday.
Volkswagen Finance Private Ltd (VWFPL) is the Indian captive financing arm of Volkswagen Group.
Kotak Mahindra Prime (Kotak Prime) will acquire the passenger cars and two-wheelers portfolio, and Kotak Mahindra Bank will acquire the commercial vehicles portfolio of Volkswagen Finance.
“With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around ₹1,340 crore,” the statement said, adding that all the acquired loans are classified as ‘Standard Loans’ as per the Reserve Bank of India guidelines.
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 Kotak’s vehicle financing loan portfolio and expand our market share. The long-term growth prospects of the Indian vehicle market are very attractive, and this acquisition reinforces Kotak’s standing as one of the leading vehicle financing players.”
Aashish Deshpande, MD and CEO, Volkswagen Finance, said, “The sale of our retail portfolio aligns to our new strategic focus towards a refined digital strategy through our subsidiary, the digital platform KUWY.”