RBL sells ₹800-crore stressed credit card loans to Kotak Bank

[RAMESH BABU N]

RBL sells ₹800-crore stressed credit card loans to Kotak Bank​

RBL sells ₹800-crore stressed credit card loans to Kotak Bank

Credit card repayment delays account for about one-fifth of the total gross non-performing assets (NPA) of RBL Bank, which is seeking to clean up its books after a change of guard at the private lender that lost more than 50% in its market capitalisation over the past five years.

economictimes.indiatimes.com

Quite interesting info.....

 

[Avangerritesh]

Good now i will have 2 kotak cards

 

[RAMESH BABU N]

The fallouts could be :

1. RBL's share price might fall further

2. Kotak's recovery team's focus will shift almost entirely on recovering these acquired NPAs

3. Kotak's own defaulters too will face more vigorous followup

4. Kotak's liberal way of giving LEs n easier CC issue will be curbed

5. RBL is at the receiving end. Their tie up with Bajaj Finance is under RBI's lens.
Last fortnight, got a stinker from RBI.

6. Those who need LEs with Kotak and those seek CCs from them - must do so now - in the next 2 to 3 weeks.

7. Even if moderately successful in their recovery, Kotak can get sizeable profit from this takeover. Ideally, before March 2024 year-end.

 

[Superxan]

Kotak is the worst bank to deal with, they have thugs for recovery and are famous for the same reason. In the last few years, if any bank that has successfully recovered the most from such NPA takeovers is Kotak undisputedly.

I would avoid Kotak like a plague....

 

[RAMESH BABU N]

Kotak is the worst bank to deal with, they have thugs for recovery and are famous for the same reason. In the last few years, if any bank that has successfully recovered the most from such NPA takeovers is Kotak undisputedly.

I would avoid Kotak like a plague....

That's why RBL chose them. RBL should have got a better price. May be all other bidders are bad in their recovery success ratios.

 

[Deleted member 11974]

didnt know kotak also acts as an ARC

 

[RAMESH BABU N]

Good now i will have 2 kotak cards

Not ALL outstanding cards business is sold to Kotak. ONLY THE NPA Card loans were sold.

If you are a normal regular customer without any defaults - you will continue to be with RBL. Only chronic defaulter's accounts are sold to Kotak.

 

[Deleted member 11974]

Good now i will have 2 kotak cards

are you a defaulter?