The Hindu Business Line : Kotak Bank sees deposit rates falling by 100 bps

Speaking at a press briefing here today, the Kotak Mahindra Group Executive Vice- Chairman and Managing Director, Mr Uday Kotak, said, “The current nine per cent rates will not sustain very long. When the world is reducing rates, India cannot afford high rates.” He said that deposit rates would settle at around 8 per cent.

No credit slowdown

He said that there was no credit slow down. “It is more of credit moderation that is taking place. We have seen some reduction in offtake on commercial vehicles. But auto loans are still growing.”

The bank has launched a new product targeting the salaried class. This deposit product offers higher returns on their deposits instead of the 3.5 per cent offered on traditional savings accounts. The product branded as “ Salary2Wealth” allows for investments as low as Rs 500 month. The product also offers built-in tax planning and wealth advisory for high salaried individuals.

The group also opened the 100th branch of the Kotak Mahindra Old Mutual Life Insurance Company in Bangalore. The life insurer plans to open at least 50 more branches by the end of this financial year end. Premium growth is also estimated at 100 per cent by the end of the year.

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