Kotak takes over Volkswagen Finance vehicle financing portfolio
Kotak Mahindra Group has taken over Volkswagen Finance Private Limited (VWFPL), the vehicle finance loan portfolio.
While Kotak Mahindra Prime will acquire the portfolio of passenger cars and two-wheelers, Kotak Mahindra Bank will take over the commercial vehicle portfolio from VWFPL.
With this development, Kotak will have access to more tha. 30,000 high quality clients with a total outstanding loan with VWFPL of around Rs 1,340 crore.
According to RBI guidelines, all of these acquired loans qualify as standard loans.
In addition, Kotak took over the portfolio of non-performing assets from VWFPL.
Dr. Kannan, Group President, Commercial Banking, Kotak Mahindra Bank and Director of Kotak Mahindra Prime said, “The strategic intention behind this acquisition is to further strengthen Kotak’s vehicle finance loan portfolio and expand our market share. VWFPL has been operating in the country since 2009 and has built a strong portfolio of customers. The long-term growth prospects for the Indian automotive market are very attractive and this acquisition strengthens Kotak’s position as one of the leading players in automotive finance.