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Kotak Mahindra Bank
The press conference held on Wednesday, by Uday Kotak, Promoter, Vice Chairman and Managing Director of Kotak Mahindra Bank, has announced that they aim to double the customer base in next 18 months. He has announced few plans which will help them to achieve the target. After a much buzz created by the market sources, about the merger of Kotak Mahindra Bank and Axis bank, there was no mention of it in his announcement.
He announced certain other plans about how to reach the goal to expand the customer base which includes following points
Introduction of Plan 811
It offers completely digitalised transactions within few minutes.
Paperless Account opening
The bank will offer paperless account opening privileges to make things smoother and hassle-free for the customers.
Zero balance account
The account can be opened with absolutely no balance in it. It will give a chance to the customer to open the account with no added cost.
Zero charges on digital transactions
This is a huge boost for the digital economy where exempting charges on digital transactions is a major win-win for both the bank and the customer.
Amid all the speculation the market has seen huge turn out where the stocks of the companies shot up by 3-5% on Tuesday, Where Axis bank has gained 5% at the end of the day due to the foreseen merger speculations. However, today the trend was opposite after the press conference was announced. All the stocks of Mahindra & Mahindra financial and Shriram Trading Finances are down with only Axis stock being 1% up.
At the end of December quarter, the net profit of the Kotak Mahindra bank was reported to be ₹1266.59 crore, which was up by 34% against last year’s corresponding quarter.
Kotak Mahindra Bank, a company with the value of ₹1.4 lakh crore, had called the board meeting on Thursday to raise the fund which triggered the merger news. The bank is flush with the liquidity of Capital Adequacy ratio of over 16%. It wants to raise the equity capital through the rights issue, private placement, FPOs or other options to fund its merger or acquisition of a mid-sized bank, but bank remains silent on this issue.