Kotak Mahindra Bank rose today morning to an intraday high at Rs.1963, rising 3%. Its 52-week high is at Rs.2048.95.
The market is pretty happy with its decision to acquire the vehicle financing unit of Volkswagen (VW). The deal involves the private sector lender's in-house NBFC Kotak Mahindra Prime acquiring the passenger car and two-wheeler portfolio, while Kotak Mahindra Bank Limited (KMBL) will acquire the commercial vehicles portfolio from Volkswagen Finance (VF).
With this acquisition, Kotak will gain access to over 30,000 high-quality customers with a total loan outstanding with VF of around Rs.1,340 crore. All these acquired loans are classified as “Standard Loans” as per the current RBI guidelines. In addition to the “Standard Loans”, Kotak has also acquired the Non-Performing Assets portfolio of VF.
The strategic intent behind this acquisition is to further strengthen Kotak’s vehicle financing loan portfolio and expand our market share.