Fair trade regulator CCI has approved Kotak Mahindra Bank's proposal to acquire Barclays Bank's unsecured loan business in India, saying the deal would not have any adverse impact on competition.
The proposed transaction involves Kotak's acquisition of business instalment loans portfolio of Barclays India and Barclays Investments and Loans (India) Ltd.
Business instalment loans are provided by Barclays to individuals, sole proprietorships, partnership firms and companies for business needs or working capital requirements.
In its order dated January 22, Competition Commission of India (CCI) noted that "the proposed combination is not likely to have an appreciable adverse effect on competition in India The regulator observed that the size of the business instalment loans portfolio of Barclays in India "is relatively insignificant".
"There are also other players in the Indian banking and financial services sector providing similar loans," CCI said.
"In view of the foregoing, it is observed that the proposed combination is not likely to give rise to any adverse competition concern in India," it added.
Barclays and Kotak had reached an agreement on the proposed deal in December, last year. Following this the entities had approached CCI for approval on January 2, 2013.