labels: kotak mahindra bank, banks & institutions, markets - general
Kotak Prime acquires auto loan portfolio from Ford Creditnews
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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Kotak Prime acquires auto loan portfolio from Ford Credit