In FY25, Kotak Mahindra Bank will open 200 new branches: Official
In April, the Reserve Bank of India (RBI) stopped Kotak from issuing new credit cards and adding new customers to its online and mobile banking services.
In the financial year 2024–2025, Kotak Mahindra Bank plans to open more new branches and add between 175 and 200 branches. A senior bank official said, months after the central bank banned the private lender from digitally acquiring new customers.
Due to problems with information technology, the Reserve Bank of India (RBI) stopped Kotak in April from adding new customers to its online and mobile banking services and from issuing new credit cards.
“We have been adding about 150 branches a year for the past few years. The trend will continue this year as well, according to Virat Diwanji, group president and head of consumer banking, who made this statement on Monday via email.
The source stated that the fourth-largest private lender in India will concentrate on areas with simple access to deposits and that branch-based client acquisition is gaining traction.
Kotak was mostly dependent on digital platforms to find new customers prior to the RBI’s directive.
It issued 99% of new credit cards through digital channels in the October–December quarter, while almost 95% of its new personal loans by volume were disbursed online. There isn’t yet a comparable breakdown for the January–March quarter.
Although Kotak’s intentions to open more branches may not help the company attract new clients right away, director of equities strategy at Wealth Mills Securities Kranthi Baithini believes that the strategy will benefit Kotak in the medium-to-long run by expanding its reach and presence. But it will come with a lot of overhead expenses, he noted.
According to Diwanji, the bank is working “steadfastly” to meet the RBI’s standards and resume regular operations in the interim.
According to him, the private lender has increased its efforts in strengthening its IT systems and has taken steps to satisfy regulatory data cybersecurity criteria as well as to improve its digital payment security controls.
The bank will keep prioritizing corporate and personal loans, according to Diwanji.
