Uday Kotak's Rs 354000 crore bank gets key approval to buy Rs 4100 crore...

Indian billionaire Uday Kotak is one the richest men in India. He is the founder of Kotak Mahindra Bank, which is among the top five private banks in the country. It is a listed entity engaged in the business of providing a range of banking and financial services. It has a market cap of Rs 354000 crore, as of November 26. 

Now, the Competition Commission of India (CCI) has approved Kotak Mahindra Bank's proposed acquisition of Standard Chartered Bank India's personal loans portfolio for Rs 4,100 crore. "The proposed combination is in the nature of an acquisition of the Target Business (unsecured personal loans portfolio) by Kotak Mahindra Bank Ltd (acquirer) from the Standard Chartered Bank, India Branch (Transferor)," CCI said in a release.

"CCI approves the proposed combination involving the acquisition of standard unsecured personal loans portfolio of Standard Chartered Bank, India Branch by Kotak Mahindra Bank Ltd," according to a post by CCI on X. In October this year, private sector lender Kotak Mahindra Bank announced it has entered into an agreement to acquire the personal loan book of Standard Chartered Bank, India, for Rs 4,100 crore (about USD 490 million) to further strengthen its position in the retail credit market.

READ | Gautam Adani's group REACTS to TotalEnergies' decision pausing new investments, says 'will not have any...'

The acquisition aligns with Kotak Mahindra Bank Ltd's (KMBL) strategy to transform for scale and focus on customer-centric growth. The high-quality loan book from Standard Chartered Bank allows KMBL to build on its strength in the affluent customer segment. Deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices and promotes fair competition in the marketplace.

(With inputs from PTI)