While Kotak Prime will acquire Volkswagen Finance Pvt Ltd’s passenger cars and two-wheelers loan portfolio, Kotak Mahindra Bank will acquire the CV portfolio
In what indicates changing market dynamics in India, Kotak Mahindra Group has acquired the vehicle financing loan portfolio of Volkswagen Finance Pvt Ltd (VWFPL), the Indian captive financing arm of the Volkswagen Group.
While Kotak Mahindra Prime (Kotak Prime) will acquire the passenger cars and two-wheelers portfolio, Kotak Mahindra Bank Ltd (KMBL) 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 current Reserve Bank of India (RBI) guidelines. In addition to these loans, Kotak has also acquired the non-performing assets portfolio of VWFPL.
Commenting on the acquisition, 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 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.”
“I would also like to take this opportunity to welcome Volkswagen customers to the Kotak Group and assure them that they will experience a seamless transition and enhanced customer experience with access to a wide suite of product offerings, backed by exceptional service standards,” added Kannan.
Speaking on the development, Aashish Deshpande, MD and CEO of Volkswagen Finance Pvt Ltd 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.”
BYD India delivers over 700 Atto 3 electric SUVs since January
EV OEM sees growing demand for premium electric SUV which is assembled at its plant in Chennai.
Tata Motors to supply 1,000 XPres-T EVs to OHM E Logistics, FY2023 biz nears 50,000 units
Twenty-one months after Tata Motors launched the fleet-only Xpres brand with a single product, the move is paying divide...
TVS Motor’s CSR arm to accelerate water conservation initiatives in rural India
Since 2017, Srinivasan Services Trust has undertaken 350 desilting projects, helping increase water storage by 160 crore...