Kotak Mahindra Bank has acquired the Agri and Healthcare Equipment financing portfolio of De Lage Landen Financial Services India (DLL India), a subsidiary of De Lage Landen International, owned by Rabobank.
The operations of DLL India’s acquired portfolio will be transitioned to Kotak Mahindra Bank in a planned manner over the next few months. Until the transition, the portfolio will continue to be managed by DLL India.
With this acquisition, Kotak will gain access to over 25,000 customers with a total standard loan outstanding of around INR 582 core (equivalent to € 69.8 Mn). In addition to the standard loans portfolio, Kotak has also acquired the non-performing assets portfolio with a total loan outstanding of around INR 69 crore (equivalent to € 8.3 Mn).
D Kannan, Group President – Commercial Banking, Kotak Mahindra Bank said, “DLL India has been operating in the country since 2013 and has built a strong customer portfolio. Kotak Mahindra Bank’s acquisition of DLL India’s Agri and Healthcare Equipment portfolio reiterates our continued commitment towards a strong presence in this space and gives us access to a high-quality customer base. We welcome DLL India customers to Kotak Bank and assure them that they will experience a seamless transition and enhanced customer experience.”
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Abhishek Mudgal, Country Manager, DLL India said, “In the last 9 years of our operations in India, with our proficient services of global standards, we were able to establish an excellent quality customer base in India. We are immensely glad that we are transferring our outstanding portfolio and customer base in India in the capable and experienced hands of Kotak Mahindra Bank, who we believe will fully support our philosophy of delivering sustainable financial solutions and high-quality services to the customers. We also wish to take this opportunity to express our sincere gratitude to our customers and vendor partners for their trust and support reposed in us over the years.”
KMBL’s commercial banking business focuses on meeting the banking and financial needs of customer segments beyond metro and urban centres. The business has specialised units which offer financial solutions in the areas of commercial vehicles, construction equipment, tractors and the agriculture sector. Further, it caters to priority sector segments by providing finance for tractor purchases, crop loans, small and medium enterprises, allied agricultural activities and microfinance for borrowers, importantly women borrowers having little to nil access to conventional banking to help them become self-sufficient. KMBL’s commercial banking business plays a pivotal role in meeting the bank’s financial inclusion objectives and the credit demand of ‘Bharat’.
(The story is based on a press statement made by Kotak Mahindra Bank and DLL India.)