Kotak Bank looking at ‘affluent’ customers to drive growth

Mumbai-headquartered Kotak Mahindra Bank aims to widen its “affluent customer” base to boost growth. Customers having investments in excess of Rs 25 lakh are described as ‘affluent’.

The bank launched a set of new offerings under the ‘Privy League’ brand here on Tuesday. Categorised under the Prima, Magna and Optima segments, the scheme would offer banking, financial planning and investment solutions.

Kamlesh D. Rao, Executive Vice-President, Kotak Mahindra Bank, said: “We expect the affluent customer count to reach 40,000 from the current 15,000, over the next couple of years.”

According to him, the segment is likely to clock nearly Rs 175 crore in revenues this fiscal and will drive overall growth for the bank.

“The opportunity for growth in this sector is quite higher,” Rao said, adding the bank saw nearly 44 per cent growth in savings account in 2012-13.

Expansion

According to Rao, the bank is planning to add over 100 branches across the country to its 440 branches by the end of this fiscal.

Of the seven branches planned in the eastern region, four will be in Kolkata. The bank, currently, has 29 branches in the eastern region. Application for obtaining the licences and necessary clearances have already been made, Rao added.

ayan.pramanik@thehindu.co.in

Source: thehindubusinessline