Kotak To Begin Banking By December

The Kotak Mahindra group plans to start banking operations around the last quarter of 2002 besides expanding its presence in the life insurance sector from 17 cities to 28 by the end of the current financial year.

Shivaji Dam, managing director of OM Kotak Mahindra Life Insurance, said at a press conference today that the bank should be operational by October-November this year. He said the group also plans to undertake housing finance business through the bank. Kotak Mahindra has already secured approval from the Reserve Bank of India to make an entry into domestic banking.

Besides, OM Kotak Mahindra Life insurance, a 74:26 joint venture between Old Mutual and Kotak Mahindra Finance Ltd, plans to expand its life insurance business to 28 cities during the financial year.

 

Dam said the company has targeted to increase its sum assured to Rs 1,300 crore and has earned a premium income of Rs 65 crore during the fiscal. During 2001-02, the company had a sum assured of Rs 330 crore.

About the domestic insurance industry, Dam said it was expected to grow 20-22 per cent annually over five years. Private players were expected to corner 25-30 per cent share of new businesses which would be about 6.25 lakh policies annually, he said.

OM Kotak Mahindra today launched its latest product called