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Kotak Mahindra Bank Says Biz Not Impacted by Payments Banks

"We do not see any impact. Our focus is how do we take the best to our consumers. Banks like us have to get more agile and offer the products to the customers," the bank's head of retail liabilities, investment and payment products, Ambuj Chandna told reporters.

PTI

Updated:April 12, 2018, 8:26 PM IST
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Kotak Mahindra Bank Says Biz Not Impacted by Payments Banks
File photo of Kotak Mahindra Bank.
Mumbai: Launch of payments banks and small finance banks has not impacted private sector lender Kotak Mahindra Bank (KMB), a senior official said on Thursday.

However, there is a need for universal banks which offer the entire gamut of services to be more agile to take on the new entrants, the bank's head of retail liabilities, investment and payment products, Ambuj Chandna said.

"We do not see any impact. Our focus is how do we take the best to our consumers. Banks like us have to get more agile and offer the products to the customers," he told reporters on the sidelines of an event to launch new debit cards for its affluent customers.

It can be noted that ahead of the launch of the new banks, entrenched lenders including State Bank of India, had expressed concerns over the impact to their business because of the entry of the banks, which are backed by storied industrial houses like Reliance Industries and Aditya Birla Group, among others.

Many banks, including KMB and SBI, have picked up stakes in payments banks.

A majority of payments banks have started operations, with Aditya Birla's and Reliance Jio's being among the last ones to go live.

Commenting specifically on the small finance banks, Chandna said it is early days but made it clear that he welcomes more players in the market which gives choices to consumers.

Chandna said the bank launched its fully digital product 8/11 a year ago and has tasted sizeable success on it.

There are strengths like the 6 per cent interest rate offering and an established business model taking care of all the associated risks which help the entrenched lenders like KMB, he said.

He affirmed that the bank does not have any plans of having a relook at the higher 6 per cent interest rate offering. Some lenders in the system have cut the elevated rates after initially increasing it.

The bank started putting up point of sales terminals last year and has already achieved "five digit" mark in the network, he said, explaining that this is a part of its strategy to serve the small business segment and the rollout will continue.

The bank had commissioned artist Paresh Maity, a Padma awardee, to create 10 paintings which will feature on debit cards for its 5 lakh affluent customers having a relationship of over Rs 10 lakh.

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| Edited by: Huma Tabassum
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