Why has Kotak Bank acquired the vehicle financing business of Volkswagen Finance?
Answer
Answer
Kotak Mahindra acquired the vehicle financing loan portfolio of Volkswagen Finance. This is the auto financing arm of Volkswagen India operations. Kotak has taken over the car loan portfolio and the two-wheeler funding portfolio of Volkswagen Finance. This gives Kotak an access to 30,000 customers and an AUM of Rs.1,350 crore. Interestingly, Kotak has taken over the standard loans portfolio and also the NPA portfolio of Volkswagen Finance.
The idea is to strengthen Kotak’s vehicle financing portfolio and expand the market share and presence in that particular area.