Kotak Mahindra Bank on Friday said it has acquired the over Rs 600 crore-worth agri and healthcare equipment finance portfolio of Dutch lender DLL India for an undisclosed sum.
The acquisition includes Rs 582 crore of outstanding loans classified as standard and Rs 69 crore of non-performing assets, according to a statement.
Kotak will gain access to over 25,000 ''high-quality customers'' with the acquisition of the portfolio from De Lage Landen Financial Services India Private Limited (DLL India), a subsidiary of De Lage Landen International B.V., owned by Rabobank.
The operations of the acquired portfolio will be transitioned to Kotak Mahindra Bank in a planned manner over the next few months, the statement said, adding that until the transition, the portfolio will continue to be managed by DLL India.
Kotak's group President for Commercial Banking D Kannan said DLL has been present in India since 2013 and the acquisition must be seen as a reiteration of its commitment towards building a presence in the space.
The commercial banking business of the bank focuses on meeting the banking and financial needs of customer segments beyond metro and urban centres, as per the statement.
''In the last 9 years of our operations in India, with our proficient services of global standards, we were able to establish an excellent quality customer base in India. We are immensely glad that we are transferring our outstanding portfolio and customer base in India in the capable and experienced hands of Kotak Mahindra Bank,'' DLL India's Country Manager Abhishek Mudgal said.
Consultancy firm KPMG acted as the exclusive financial advisors to the shareholders of DLL India for the transaction.
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