ÑDz©ÌåÓý¹ÙÍøÊ×Ò³

Kotak Mahindra Bank, one of India's leading private lenders, is set to ramp up its branch expansion efforts by adding approximately 175 to 200 new branches in the financial year 2024-25. This decision comes a few months after the Reserve Bank of India (RBI) imposed restrictions on the bank from sourcing new customers through digital channels due to IT-related deficiencies. We have been adding roughly 150 odd branches for several years now. This year too, the momentum is going to continue, said Virat Diwanji, Group President and Head of Consumer Banking at Kotak Mahindra Bank, in an email interview with Reuters on Monday. In April, the RBI barred Kotak from onboarding new customers via its online and mobile banking platforms and from issuing new credit cards. Prior to this, the bank heavily relied on digital means for customer acquisition, with 95% of new personal loans and 99% of new credit cards being issued digitally in the October-December quarter. Kotak Mahindra Bank, India's fourth-largest private lender, will focus its expansion in areas with abundant deposit availability. Diwanji noted that customer acquisition through branches is gaining significant traction despite the recent challenges. Financial experts believe this branch expansion strategy may not yield immediate results in terms of new customer acquisition but could enhance the bank?s market presence and reach in the medium-to-long term. However, that will come with high overhead costs, commented Kranthi Baithini, Director of Equity Strategy at WealthMills Securities. To address the RBI's concerns, Kotak Mahindra Bank is diligently working to upgrade its IT systems, focusing on fortifying digital payment security controls and complying with regulatory data cybersecurity standards. Diwanji mentioned that the bank has hired over 530 employees, predominantly from tech backgrounds, in the past 12-15 months to support these initiatives. Despite the current digital restrictions, the bank's commitment to personal and business loans remains steadfast, as it continues to enhance its service capabilities both digitally and through its expanding branch network.