D Kannan, President, Commercial Banking Group, Kotak Mahindra Bank said, “The strategic intention 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 auto market are very attractive and this acquisition strengthens Kotak’s position as one of the leading auto financing companies.”
With this acquisition, Kotak expects to gain access to over 30,000 high-quality customers with a total debt of around Rs 1,340 crore. All these accrued loans are classified as “Standard Loans” as per the extant RBI guidelines. In addition to standard loans, Kotak has also acquired Volkswagen Finance’s non-performing asset portfolio.
“The sale of our retail portfolio is in line with our new strategic focus towards a sophisticated digital strategy through our subsidiary, digital platform KUWY,” said Ashish Deshpande, MD, Volkswagen Finance.