Kotak Mahindra Bank is seeking to double its branch network in the next year and its business in 3-5 years. It currently has 52 branches and a business base of Rs 11,500 crore. | |
| Elaborating on the bank's expansion plans, Uday S Kotak, vice chairman and managing director, Kotak Mahindra Bank said in Bangalore: "There is immense potential in the Indian economy and the two sectors which will be the triggers for sustaining this growth are financial services and infrastructure. We are right in the middle of financial services and given the economic growth, this sector should grow by at a compound annual rate of 25 per cent. Ideally we should double our business in 3-5 years time." |
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| He further added that India is moving from being a nation of savers to a nation of investors and if the current 2 per cent of the population who are investing in equities grows to close to 5 per cent, "this would mean a phenomenal rise for the banking sector." |
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| He said modern banks are actively engaging their customers in cross-selling investment products and there is a willingness on the part of the Indian population to be part of that growth. |
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| Speaking on the group's other financial businesses, he said that operations such as stock broking, mutual funds, life insurance, investment banking are all on a upswing. |
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| He highlighted the Asset Reconstruction Division as productive and said: "We are aggressively looking for stressed assets and currently we have assets close to Rs 1,500 crore from around 300 corporates. Nearly 10-15 per cent of them have been resolved and this is a continuous process in our growth." |
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| Kotak said the private equity fund business has a corpus of Rs 700 crore and close to 30 per cent has been drawn down for investments in textiles, retail, software and other sectors. |
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| "We have recently raised $100 million for a real estate fund and our offshore fund in the UK is in the process of raising further money to invest in India as an FII." |
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