Kotak Bank to add 200 branches in FY25

According to a senior official, Kotak Mahindra Bank will speed up the process of opening new branches and plans to add around 175 to 200 branches in the fiscal year 2024-25, following a restriction from the central bank on the bank's digital customer acquisition.

During April, the RBI prohibited the bank from acquiring new clients through its online and mobile banking services and from distributing new credit cards; because of shortcomings in its information technology.

Virat Diwanji, group president and head - consumer bank stated that the bank has been adding around 150 branches for several years and the momentum is going to continue for the current year as well.

The fourth largest private bank will focus on areas with abundant deposit opportunities and is experiencing strong customer growth through branch channels.

Prior to RBI's order, the bank heavily depended on digital channels to acquire new customers.

Kotak's plans to add branches may not attract new customers right away, but the strategy could pay off in the medium-to-long term by expanding its visibility and accessibility. However, it will lead to high overhead costs.

In the meantime, the bank is working diligently to meet the RBI's demands and resume normal operations.

The bank has also increased investments to enhance its IT systems, including measures to reinforce digital payment security controls and comply with regulatory data cybersecurity standards.