Money & Banking

Kotak Mahindra opens 300th branch

| Updated on: Feb 23, 2011

Kotak Mahindra Bank on Wednesday launched its 300th branch and announced plans to reach the 500th branch mark by 2012 as part of its growth strategy to “deepen and broaden its network“.

The launch of the branch comes at a time when the Kotak Group is celebrating its 25th anniversary and there are plans to keep the momentum going by reaching the 500th branch mark by 2012, said KMBL Executive Vice Chairman and Managing Director, Mr Uday Kotak.

The bank now has 14 branches in Bangalore and overall 15 outlets in Karnataka. It also plans to add new branches in Mangalore, Hubli and Belgaum by next month, according to Mr Uday Kotak.

The bank is also looking at expanding its current 750 ATMs in the country to 1,000 plus in the next 12 to 18 months as part of its retail growth strategy.

It plans to “get broader and deeper within the country and to be provide thought leadership in providing solutions, Mr Kotak said.

Further on tie ups and mergers and acquisitions, he said, “Inorganic growth also interests us. It is on our radar.”

Though nothing had crystallised so far, he said, the three areas of its interest were banking, brokerage and asset management.

At present, KMBL employs 20,000 people and expects to add on an average another 2,000 this year.

“We are believers of the domestic India story and we believe we will continue to grow”, he said.

Tracing the 25 years of the group’s existence, Mr Uday Kotak said the group had been a product of India’s joruney down the reform process.

Going forward, it hopes to serve smaller customers through retail branch expansion. However, he also said that going forward, technology could also change the way these customers will be served and hoped to leverage on it.

The bank, he said, had a high capital adequacy ratio. “We have enough petrol in the engine to significantly able us to invest, lend and grow without being short on capital“.

The bank plans to double its NRI base, Kotak Mahindra Group Head (Retail Liabilities & Branch Banking), Mr K V S Manian, said.

There are lot of NRIs keen to bring money to India with Indian markets looking more attractive. These customers are not necessarily looking at being serviced from branch but tapping into the internet platform. About 17 to 18 per cent of the bank’s deposit came from the sector, he said.

“The overseas approach was to focus on Indian products and Indian customers”, Mr Kotak said.

Published on February 27, 2011

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