Kotak Mahindra Bank to add up to 200 branches in FY25

Kotak Mahindra Bank in India plans to expand its branch network by 175 to 200 branches in FY25, despite recent regulatory restrictions from the Reserve Bank of India (RBI) on digital customer acquisition and credit card issuance due to IT-related issues. At Kotak Mahindra, Group President and Head of Consumer Bank, Mr. Virat Diwanji, highlighted the bank's commitment to this expansion strategy, noting a historical addition rate of approximately 150 branches annually. The focus will be on areas with high deposit potential to strengthen customer acquisition through physical branch networks amid the current digital limitations.

Previously reliant on digital channels for a significant share of new personal loans and credit card operations, Kotak Mahindra now faces challenges in immediate customer growth but anticipates long-term benefits from enhancing its physical footprint. The bank is concurrently investing in IT infrastructure to bolster digital payment security and comply with stringent regulatory standards. He reaffirmed Kotak's strategic priorities in expanding personal and business loan offerings, underscoring resilience amidst regulatory adjustments and operational enhancements.

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