Kotak Mahindra Buys Ford Credit India's Vehicle Finance Portfolio
Kotak Mahindra Prime is expected to gain access to over 16,000 "high-quality" customers with loan outstanding of Rs 425 crore.
![<div class="paragraphs"><p>Kotak Mahindra Bank Ltd. logo is displayed at the company's head office. [Photographer: Dhiraj Singh/Bloomberg]</p></div>](https://media.assettype.com/bloombergquint%2F2021-12%2F65577aa4-9b20-44d6-a0cd-b89a91a0afe1%2F323116456.jpg?rect=0%2C384%2C3999%2C2249&auto=format%2Ccompress&w=200)
Kotak Mahindra Prime Ltd. has agreed to acquire the vehicle finance portfolio of Ford Credit India, the Indian captive financing arm of Ford Motor Co.
The deal, Kotak Mahindra Prime said in an exchange filing, is expected to give it access to over 16,000 "high-quality" customers with total outstanding loan amount of Rs 425 crore.
"The acquisition of Ford Credit’s loan portfolio further reiterates our continued commitment to grow our vehicle financing business and have a strong presence in this space,” Vyomesh Kapasi, managing director of Kotak Mahindra Prime, was quoted as saying in the filing. “We'd like to welcome Ford customers to Kotak Group and look forward to supporting their future financing needs with Kotak’s wide suite of product offerings.”
The Kotak Mahindra Group announced in September its acquisition of vehicle financing loan portfolio of Volkswagen Finance Pvt., comprising passenger cars, two-wheelers and commercial vehicles.
The company offers financing in the form of loans for dealers and retail customers for purchasing passenger cars, multi-utility vehicles, pre-owned cars and two-wheelers.