Kotak Mahindra Group has taken over Volkswagen Finance Private Limited (VWFPL), the vehicle financing loan portfolio.
While Kotak Mahindra Prime will be acquiring the passenger cars and two-wheelers portfolio, Kotak Mahindra Bank will take over the commercial vehicles portfolio of VWFPL.
With this development, Kotak will be getting access on more tha. 30,000 high-quality customers with a total loan outstanding with VWFPL of around Rs 1,340 crore.
According to the RBI guidelines, all these acquired loans are termed as standard loans.
Besudes, Kotak has taken over 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. VWFPL has been operating in the country since 2009 and has built a strong customer portfolio. 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.”