The Kotak Mahindra Group has announced that it has acquired the vehicle finance loan portfolio of Volkswagen Finance Private Limited (VWFPL), the Indian captive finance subsidiary of the Volkswagen Group. He also indicated that Kotak Mahindra Prime Limited (Kotak Prime) will acquire the passenger car and two-wheeler portfolio, and Kotak Mahindra Bank Limited (KMBL) will acquire the utility vehicle portfolio from VWFPL.
With this, the company will have access to more than 30,000 high-quality customers with a total outstanding loan with VWFPL of approximately ??1,340 crores.
The company has stated in its regulatory filing that all of these acquired loans are classified as standard loans under current Reserve Bank of India (RBI) guidelines. In addition to “standard loans”, Kotak also acquired VWFPL’s portfolio of non-performing assets.
Dr. Kannan, Group Chairman, Commercial Banking, Kotak Mahindra Bank and Director of Kotak Mahindra Prime, said, “The strategic intention behind this acquisition is to further strengthen Kotak’s auto finance loan portfolio and expand our share. Steps. VWFPL has been operating in the country since 2009 and during this period has built a strong portfolio of customers. “
“The long-term growth outlook for the Indian automotive market is very attractive and this acquisition strengthens Kotak’s position as a leading player in automotive finance. “
“I would also like to take this opportunity to welcome Volkswagen customers to the Kotak Group and assure them that they will experience a smooth transition and improved customer experience with access to a wide range of products, backed by standards. exceptional service, ”Kannan added. .
Speaking on development, Aashish Deshpande, MD and CEO of Volkswagen Finance Pvt. Ltd. said: “The sale of our retail portfolio aligns with our new strategic direction towards a fine-tuned digital strategy through our subsidiary, the KUWY digital platform.
“This 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 our dealers, while aligning effectively to support the VW India 2.0 strategy” , he added.
Never miss a story! Stay connected and informed with Mint. Download our app now !!