The portfolio of agricultural and medical equipment financing from De Lage Landen Financial Services India Private Limited (DLL India), a subsidiary of De Lage Landen International BV, a company owned by Rabobank, was acquired by Kotak Mahindra Bank on July 8.
According to the companies' exchange filing, the operations of the purchased portfolio will be transferred to Kotak Mahindra Bank in a scheduled way over the coming months. Until then, the portfolio will continue to be managed by DLL India.
Through this transaction, Kotak will have access to more than 25,000 high-quality customers with around Rs 582 crore in outstanding standard loans. Notably, in addition to the portfolio of standard loans, Kotak Mahindra Bank also acquired a portfolio of non-performing assets, with a total loan outstanding of about Rs 69 crore.
Kotak Mahindra Bank's Group President for Commercial Banking, D Kannan, stated: "DLL India has been operating in the nation since 2013 and has built a strong customer portfolio."
"The acquisition of DLL India's Agri and Healthcare Equipment portfolio by Kotak Mahindra Bank confirms our dedication to maintaining a strong presence in this market and provides us with access to a select group of reputable customers. Customers of DLL India are welcomed to Kotak Bank, and we guarantee them a smooth transfer and improved customer service."
"In the previous nine years of our operations in India, with our competent services of worldwide standards, we were able to develop an exceptional quality client base in India. We are pleased to be handing over our impressive portfolio and customer base to Kotak Mahindra Bank, who we feel will completely support our concept of offering customers high-quality services and sustainable financial solutions. We would also want to take this opportunity to thank our clients and vendor partners for their continued trust and support in us over the years," stated Abhishek Mudgal, Country Manager, DLL India.
KPMG served as the only financial advisor to the shareholders of DLL India in connection with this portfolio sale to Kotak Mahindra Bank.
