Kotak Mahindra Bank acquires Standard Chartered’s ₹3,300 crore personal loan portfoilio | Mint

India’s third-biggest private sector lender Kotak Mahindra Bank on Thursday said it has completed the acquisition of ₹3,300 crore personal loan portfoilio of Standard Chartered Bank India following regulatory approvals.

In an exchange filing, Kotak Mahindra Bank said: “After having received the necessary regulatory approvals and upon fulfillment of the relevant conditions precedent, the bank on January 23, 2025, completed the acquisition.”

The bank has picked up the entire quantum of the foreign lender’s personal loans classified as standard advances.

In October last year, Kotak Mahindra Bank had announced the acquisition of personal loan portfoilio of Standard Chartered.

Kotak Mahindra Bank shares fell 1.88 per cent to close at ₹1,894.60 apiece on the BSE on Thursday.

Kotak Mahindra Bank earnings

On January 18, Kotak Mahindra Bank reported a 10.22 per cent rise in its December quarter consolidated net profit to ₹4,701 crore. The lender had reported a net profit of ₹4,265 crore in the year-ago period and ₹5,044 crore in the preceding September quarter.

On a standalone basis, its net profit rose to ₹3,304 crore from ₹3,005 crore in the year-ago period but was marginally down when compared with the September quarter’s ₹3,343 crore.

Its total income stood at ₹16,050 crore, up from ₹14,096 crore in the year-ago period.

It also reported higher expenses at ₹10,869 crore against ₹9,530 crore.

The bank said the gross non-performing assets (NPAs) ratio rose to 1.50 per cent from 1.49 per cent three months ago.

The overall provisions surged to ₹794 crore from ₹579 crore in Q3 FY24 and ₹660 crore in Q2 FY25.

At least eight brokerages, including Nuvama and ICICI Securities, put a buy recommendation on the bank stock.

Kotak’s improving asset quality is offering optimism for lenders at a time when the Indian banking industry is grappling with a spike in bad loans as economic growth slows.