Can't blame banks for derivatives loss: Kotak

Kotak Mahindra Bank today said companies, which have reaped the benefits of derivatives deals in the past, should not blame banks when the deals have not been favourable to them.

Chennai-based Sundaram Brake Linings has taken the bank to the Madras High Court though Kotak is trying to settle the matter through arbitration.

Uday Kotak, the vice-chairman and managing director of Kotak Bank, told reporters that companies not acknowledging the value of contracts was not a sign of good corporate governance.

"Most companies are demonstrating good conduct. However, there are a few bad examples," he said on the sidelines of a press conference to launch the bank's credit card.

Kotak pointed out that companies, which have in recent months gone to court alleging mis-selling, were not ordinary retail investors, but were governed by a board with corporate governance guidelines and had treasury operations.

Vikram Sud, the bank's group chief operating officer, said the target was to be among the top-five players with 1.5 million cards over the next three years. "The bank has a very segmented approach. We will focus on the salaried class, self-employed, mass affluent and affluent customers,'' he added.