Now Reading: Godrej Finance buys Kanakadurga’s gold loan book for Rs 280 crore
-
01
Godrej Finance buys Kanakadurga’s gold loan book for Rs 280 crore
Godrej Finance buys Kanakadurga’s gold loan book for Rs 280 crore
Godrej Finance has acquired the gold loan business of Kanakadurga Finance, which includes a portfolio of Rs 280 crore in assets under management. The deal covers about 12,000 customers, 54 operational branches…
The Story in Brief
Godrej Finance has acquired the gold loan business of Kanakadurga Finance, which includes a portfolio of Rs 280 crore in assets under management. The deal covers about 12,000 customers, 54 operational branches across Andhra Pradesh, and around 250 employees, according to Barandbench.
Khaitan & Co advised Godrej Finance on the acquisition, with a team led by partner Shishir Vayttaden and Aditi Singhvi. SNG & Partners represented Kanakadurga Finance, led by partner Aditya Vikram Dua, handling regulatory and transition issues for the RBI-regulated lending business.
The Indian Opinion
Consolidation in the gold loan sector is accelerating, but the narrative that this signals distress among smaller financiers is one-sided. Kanakadurga's business was profitable enough to attract a buyer like Godrej Finance. The real test will be whether the acquisition helps Godrej Finance expand its rural reach without taking on excessive regulatory risk from inherited loan documentation and customer data.
Source: barandbench.com
This story was synthesised by AI from the source linked above.
