Kotak Mahindra Bank on Tuesday acquired Barclays India\'s business loans portfolio or SME lending business worth about Rs 700 crore for an undisclosed amount. This will give Kotak an access to 6,000 new customers from Barclays.
Kotak Mahindra Bank on Tuesday acquired Barclays India's business loans portfolio or SME lending business worth about Rs 700 crore for an undisclosed amount. This will give Kotak an access to 6,000 new customers from Barclays.
For the British bank, the latest sale is yet another attempt to reduce its exposure in India as it shifts focus to corporate and investment banking while reducing retail exposure in the country.
The parties had won the go-ahead for the deal from the Competition Commission last week.
Confirming the sale, Barclays in a statement, said, “Our growth in India is focused on our competitive strengths providing services to multinationals and large corporates, utilising our offerings in international banking, such as cash management and trade finance, as well as providing wealth management and investment banking services.”
Barclays has been winding down its loan book for the past couple of years. In December 2011, it sold its credit card business to Standard Chartered Plc and Kotak Mahindra Bank.
In the three months to December, Kotak Bank reported a 25 per cent rise in its net profit to Rs 577.2 crore. Total income of the bank during quarter stood rose to Rs 4,157.12 crore from Rs 3,123.31 crore in the previous fiscal. Income from other sources increased to Rs 500.14 crore from Rs 490.18 crore over the same period previous fiscal.