Private lender Kotak Mahindra Bank (KMBL) on 8 July announced to have acquired the Agri and Healthcare Equipment financing portfolio of De Lage Landen Financial Services India Private Limited (DLL India).
Over the next few months, the operations of DLL India Acquired Portfolio will be transitioned to Kotak Mahindra Bank in a planned manner, while until then it will be managed by DLL India, Kotak Mahindra Bank said in a stock regulatory filing.
With the acquisition, Kotak will gain access to over 25,000 high-quality customers with a total standard loan outstanding of around ₹582 crore — equivalent to €69.8 million.
Apart from this, Kotak also acquired the Non-Performing Assets (NPA) portfolio with a total loan outstanding of around ₹69 crore — equivalent to €8.3 million.
“DLL India has been operating in the country since 2013 and has built a strong customer portfolio. KMBL’s acquisition of DLL India’s Agri and Healthcare Equipment portfolio reiterates our continued commitment towards a strong presence in this space and gives us access to a high-quality customer base. We welcome DLL India customers to Kotak Bank and assure them that they will experience a seamless transition and enhanced customer experience,” Kotak Mahindra Bank’s Group President D Kannan said.
The commercial banking of KMBL has specialised units which offer financial solutions in the areas of commercial vehicles, construction equipment, tractor and agriculture sector. The bank aims to DLL in those sector.
For this transaction of portfolio sale to Kotak Mahindra Bank, KPMG acted as the exclusive financial advisors to the shareholders of DLL India.