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Kotak
Prime acquires auto loan portfolio from Ford Credit
21
February 2006
Kotak
Mahindra Prime Limited (formerly Kotak Mahindra Primus
and a subsidiary of Kotak Mahindra Bank) has acquired
the entire retail auto finance portfolio of Ford Credit
India. The total value of the assets acquired by Kotak
Prime has not been disclosed.
Kotak
Mahindra and Ford Credit had formed two joint ventures
for the auto financing business in the '90s. Ford Credit
Kotak Mahindra was formed to finance Ford cars while Kotak
Mahindra Primus was formed to finance non-Ford vehicles.
Late
last year, the two groups decided to terminate their association.
Accordingly, Ford Credit bought out the 35 per cent held
by Kotak Mahindra and 10 per cent held by Mahindra &
Mahindra in Ford Credit Kotak Mahindra. The 40-per cent
stake held by Ford Credit International in Kotak Mahindra
Primus was acquired by Kotak Mahindra.
Primus
is a brand owned by Ford Credit internationally for its
auto financing operations and Kotak Mahindra Primus was
renamed as Kotak Mahindra Prime. It was also decided last
year that Ford Credit Kotak Mahindra would drop 'Kotak
Mahindra' from its name and the company was subsequently
renamed as Ford Credit India.
For
the quarter ended December 2005, Kotak Bank had reported
a consolidated net profit of Rs32.64 crore or Rs1.06 per
share as compared to Rs31.18 crore or Rs1.01 per share
for the September quarter. Total income decreased to Rs230.92
crore from Rs235.85 crore, because of a fall in other
income to Rs48.73 crore from Rs.73.06 crore.
Promoters
hold a 58.5 per cent stake in Kotak Mahindra Bank including
the 49.5 per cent stake held by Uday Kotak, managing director.
FII's held a 20.5 per cent stake in
the bank as of 31 December 2005 while domestic institutions
held 3 per cent.
Kotak
Mahindra closed at Rs230.75 (down 1.16 per cent) on the
BSE yesterday.
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