Kotak Mahindra Bank on Friday said it has entered into an agreement to acquire the personal loan book of Standard Chartered Bank India, which has a total outstanding of around Rs 4,100 crore. Kotak’s move is aimed at strengthening its position in the retail credit market.

“The proposed transaction consists of loans classified as ‘Standard Loans’ as per the Reserve Bank of India (RBI) guidelines. The transaction is expected to be completed over the next three months, subject to regulatory and other approvals and the satisfaction or waiver of customary closing conditions and KMBL will acquire the loan book, which will be outstanding closer to the completion date,” Kotak said in a statement.

This acquisition aligns with Kotak Mahindra Bank’s strategy to transform for scale and focus on customer-centric growth, it said.

“The high-quality loan book from Standard Chartered Bank allows Kotak’s to build on its strength in the affluent customer segment and further reinforces its leadership in the retail lending space,” Kotak Mahindra Bank added.

Kotak Mahindra Bank aims to leverage its technology expertise and quality customer service to ensure a seamless transition for existing Standard Chartered Bank Personal Loan customers, maintaining the high standards both institutions are known for.

Ambuj Chandna, Head-Products, Consumer Bank, Kotak Mahindra Bank, said, “India’s unsecured lending market offers significant growth potential for Kotak, especially in the higher-end segment. Our strong risk management, customer-centric products, and technology-driven approach position us for sustainable growth. This transaction supports our Retail Assets growth strategy and reinforces our commitment to retail lending. It provides access to a high-quality customer base, and with Kotak Group’s successful integration track record, we are committed to a smooth transition. We look forward to welcoming new customers to Kotak Mahindra Bank, ensuring a seamless transition and enhanced experience with our diverse products and services.”

Aditya Mandloi, Head – Wealth & Retail Banking, Standard Chartered Bank, India & South Asia said, “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. 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.”