New Delhi: Kotak Mahindra Group and Volkswagen Finance Private Limited (VWFPL) on Thursday introduced that Kotak has acquired the automobile financing mortgage portfolio of VWFPL. VWFPL is the Indian captive financing arm of Volkswagen Group. Kotak Mahindra Prime Limited or Kotak Prime will purchase the passenger automobiles and two-wheelers portfolio, and Kotak Mahindra Bank Limited (KMBL) will purchase the industrial automobiles portfolio of VWFPL, each the businesses said in joint notification to the exchanges.
With this deal, Kotak stated it can get entry to over 30,000 clients with a complete mortgage excellent with VWFPL of round Rs 1,340 crore.
The acquired loans are categorized as “Standard Loans” as per the Reserve Bank of India (RBI) tips. In addition, Kotak has additionally acquired the non-performing belongings or NPAs portfolio of VWFPL.
D Kannan, Group President – Commercial Banking, Kotak Mahindra Bank and Director of Kotak Mahindra Prime stated, “VWFPL has been working within the nation since 2009 and through this time has constructed a robust buyer portfolio. The long-term development prospects of the Indian automobile market are very engaging and this acquisition reinforces Kotak’s standing as one of many main automobile financing gamers.”
Aashish Deshpande, MD and CEO of Volkswagen Finance stated, “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 in all India’s main monetary companies conglomerates.