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Kotak Acquires Vehicle Financing Portfolio of Volkswagen Finance

 Kotak Mahindra Group has acquired the vehicle financing loan portfolio of Volkswagen Finance Private Limited (VWFPL).

 Kotak Mahindra Prime will acquire the passenger cars and two-wheelers portfolio while Kotak Mahindra Bank will acquire the commercial vehicles portfolio of VWFPL.

With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VWFPL of around Rs 1,340 crore. All these acquired loans are classified as standard loans as per the RBI guidelines. In addition to the standard loans, 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. 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.”

 

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