New Delhi:Kotak Mahindra Group and Volkswagen Finance Private Limited (VWFPL) on Thursday announced that Kotak has acquired the vehicle financing loan portfolio of VWFPL. VWFPL is the Indian captive financing arm of Volkswagen Group. Kotak Mahindra Prime Limited or Kotak Prime will acquire the passenger cars and two-wheelers portfolio, and Kotak Mahindra Bank Limited (KMBL) will acquire the commercial vehicles portfolio of VWFPL, both the companies stated in joint notification to the exchanges.
With this deal, Kotak said it will get access to over 30,000 customers with a total loan outstanding with VWFPL of around Rs 1,340 crore.
The acquired loans are classified as “Standard Loans” as per the Reserve Bank of India (RBI) guidelines. In addition, Kotak has also acquired the non-performing assets or NPAs portfolio of VWFPL.
D Kannan, Group President – Commercial Banking, Kotak Mahindra Bank and Director of Kotak Mahindra Prime said, “VWFPL has been operating in the country since 2009 and during this time 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.”
Aashish Deshpande, MD and CEO of 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. It is a step towards the evolution of the customer journey in the digital space by offering a simplified and agile solution to both our customers and dealerships, while aligning effectively to support the VW India 2.0 strategy.”
Kotak Mahindra Group is one of India’s leading financial services conglomerates.