Standard Chartered is selling its personal loan book in India to a local lender.
Kotak Mahindra Bank has entered an agreement to acquire Standard Chartered’s personal loan book in India, according to a statement.
The loan book consists of so-called «Standard Loans» – loans that are performing well with no signs of distress or default, according to the Reserve Bank of India's (RBI) guidelines – with an outstanding amount of around 41 billion rupees ($490 million). The deal is expected to be completed over the next three months, subject to regulatory and other approvals.
Business Focus
According to Standard Chartered, India continues to be a key market even after the sale.
«Our decision to divest the personal loan book is in line with the Bank’s focus to accelerate growth in the wealth, affluent and SME segment,» said Aditya Mandloi, head – wealth & retail banking, Standard Chartered Bank, India & South Asia.
«India continues to be a key market for Standard Chartered network, with Wealth & Retail Banking (WRB) and Corporate & Investment banking (CIB) as the cornerstones and we will continue to invest and grow in India. Together with Kotak, we remain committed towards ensuring a seamless transition for our clients».
