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Kotak Mahindra Bank expects to grow its consumer banking business by 18 per cent, on the back of a robust service sector and improved asset quality, Shanti Ekambaram, president (consumer banking) at Kotak Mahindra Bank, said here on Monday. She was speaking to reporters on the sidelines of launching Grand, a saving banks account tailor-made for customers who are 55 years and above.
During the month ended September 30, 2014, the private sector lender registered Rs 18,308 crore in consumer banking compared to Rs 15,555 crore in the year-ago period - an increase of 18 per cent. Within consumer banking, small business, personal loans and credit cards grew 29 per cent to Rs 5,301 crore from Rs 4,099 crore a year ago.
Home loans and loans against property rose 14 per cent to Rs 12,894 crore from Rs 11,307 crore in the September 2013 quarter.
"One of the major focuses will be SENP (self-employed non-professionals) and cross-sell to bank branch," said Ekambaram, adding that mortgages growth in select territories, selective growth in small business and personal loans and profitable growth low delinquencies are other focus areas for the bank.
On the bank's expansion plan, she said by calendar year 2016, the number of branches will be raised to 1,000 from 641 currently. Queried whether expansion in southern states will be slowed down due to Kotak Mahindra's acquisition of ING Vysya, she said: "As of now, the plan would continue... The deal needs to get approval from shareholders and CCI (Competition Commission of India)."
Speaking about Grand, she said the product was designed keeping in mind senior citizens' need for hassle-free banking, financial independence and personal attention. The tailored savings banks account are for customers who are 55-plus, with cash back on point-of-sale transactions every month. It also offers healthcare, lifestyle and convenience benefits.
Customers will earn six per cent per cent a year on savings balance of more than Rs 1 lakh and five per cent on balances up to Rs 1 lakh. "Compared to competition, what we offer is better," she said, adding that most other banks offer four per cent on savings account.
Disclaimer: Kotak Mahindra and associates are significant shareholders in Business Standard Limited
