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Kotak Mahindra Bank

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Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers banking products and financial services for corporate and retail customers in the areas of personal finance, investment banking, life insurance, and wealth management.[6] As of December 2023, the bank has 1,869 branches and 3,239 ATMs, including branches in GIFT City and DIFC (Dubai).[7]

Kotak Mahindra Bank
Company typePublic
ISININE237A01028
IndustryFinancial services
Founded6 February 2003; 21 years ago (6 February 2003)
FoundersUday Kotak
HeadquartersMumbai, Maharashtra, India
Key people
  • Uday Kotak
    (non-executive director)
  • Ashok Vaswani
    (MD & CEO)
Products
RevenueIncrease ₹94,274 crore (US$11 billion)[1] (2024)
Increase ₹25,836 crore (US$3.1 billion)[1] (2024)
Increase ₹18,213 crore (US$2.2 billion)[1] (2024)
AUMIncrease ₹420,880 crore (US$50 billion) (2023)[2]
Total assetsIncrease ₹767,667 crore (US$92 billion)[3] (2024)
Total equityIncrease ₹128,898 crore (US$15 billion)[3] (2024)
Number of employees
116,000+ (March 2024)[4]
Subsidiaries
Websitewww.kotak.com Edit this at Wikidata

History

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1985–2002: Kotak Mahindra Finance

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In 1985, Uday Kotak founded Kotak Mahindra Financial services Limited as financial services company with a loan of ₹30 lakh from family and friends.[8] In 1986, Anand Mahindra and his father Harish Mahindra invested ₹1 lakh in the company which was subsequently renamed Kotak Mahindra Finance.[9] The company was initially engaged in bill discounting, along with lease and hire purchase activities.[10]

In the early 1990s, the company started offering car financing and investment banking services and expanded its operations overseas. In 1996, car financing company Kotak Mahindra Primus was incorporated as a 60:40 joint venture between Kotak Mahindra Finance and Ford Credit International.[11] In the same year, Kotak Mahindra Finance hived off its investment banking division into a new company, Kotak Mahindra Capital, started in partnership with Goldman Sachs.[12]

In 1998, Kotak Mahindra Finance started its mutual fund arm called Kotak Mahindra AMC.[13] In 2001, OM Kotak Mahindra Life Insurance was established as a 74:26 joint venture between Kotak Mahindra Finance and Old Mutual.[14]

2003–present: Kotak Mahindra Bank

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A Kotak Mahindra Bank ATM in Kolkata.

In February 2003, Kotak Mahindra Finance received a banking licence from the Reserve Bank of India, becoming India's first non-banking finance company to be converted into a bank. Kotak Mahindra Finance was then renamed Kotak Mahindra Bank.[15] At the time, Uday Kotak had a 56% stake in the company while Anand Mahindra held a 5% stake.[16]

In 2005, Kotak Mahindra Bank acquired Ford Credit's 40% stake in Kotak Mahindra Primus, making it a wholly-owned subsidiary of the group.[17] Kotak Mahindra Primus was subsequently renamed as Kotak Mahindra Prime.[18] In 2006, Kotak Mahindra Bank bought out Goldman Sachs' 25% stake in Kotak Mahindra Capital for ₹210 crore (US$46.35 million) and 25% in Kotak Securities for ₹123 crore (US$27.15 million), turning both companies into its wholly-owned subsidiaries.[19]

In 2014, Kotak Mahindra Bank acquired a 15% stake in Multi Commodity Exchange (MCX) from Financial Technologies Group for ₹459 crore (US$75.21 million) to become the company's largest shareholder.[20]

In 2014, Kotak Mahindra Bank announced the acquisition of ING Vysya Bank in a deal valued at ₹15,000 crore (US$2.34 billion). With the merger completed in 2015, Kotak Mahindra Bank had almost 40,000 employees, and the number of branches reached 1,261.[21] After the merger, ING Group, which controlled ING Vysya Bank, obtained a 6.5% stake in Kotak Mahindra Bank.[22]

In 2015, Kotak Mahindra General Insurance, a wholly-owned subsidiary of Kotak Mahindra Bank, started operations after receiving IRDAI's approval.[23] In 2016, Bharti Airtel and Kotak Mahindra Bank started an 80:20 joint venture called Airtel Payments Bank.[24]

In 2016, Kotak Mahindra Bank acquired BSS Microfinance for ₹139.2 crore (US$20.72 million).[25]

In March 2017, Kotak Mahindra Bank launched an online savings account called Kotak 811,[26] named after the date Prime Minister Narendra Modi had announced demonetisation in the previous year (8 November), which according to Uday Kotak was "the day that changed India."[27][28] Kotak 811 helped the bank double its number of customers by September 2018.[29]

In April 2017, Kotak Mahindra Bank acquired Old Mutual's 26% stake in Kotak Mahindra Old Mutual Life Insurance for ₹1,292 crore (US$198.4 million), making the life insurance company its wholly-owned subsidiary.[30]

In 2021, Kotak Mahindra Bank sold its 8.57% stake in Airtel Payments Bank to Bharti Enterprises for ₹295 crore (US$39.81 million).[31] In the same year, Kotak Mahindra Group acquired the vehicle financing portfolio of Volkswagen Finance India[32] and passenger vehicle financing portfolio of Ford Credit India.[33] In 2022, it acquired the agriculture and healthcare equipment financing portfolio of DLL India.[34]

In 2023, Kotak Mahindra Bank acquired microfinancier Sonata Finance for ₹537 crore (US$64 million).[35]

In February 2024, Zurich Insurance Group announced its acquisition of a 70% stake in Kotak Mahindra General Insurance for ₹5,560 crore (US$670 million).[36]

Subsidiaries and associates

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Major subsidiaries of the Bank include [37]

Recognition

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In a study by Brand Finance Banking 500 published in February 2014 by Banker magazine, Kotak Mahindra Bank was ranked 245th among the world's top 500 banks with a brand valuation of around US$481 million and brand rating of AA+.[38][39]

Philanthropy

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In 2020, Kotak pledged to donate ₹50 crore to the PM CARES Fund to fight against the COVID-19 pandemic in India.[40]

Controversies

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In April 2024, the Reserve Bank of India barred Kotak Mahindra Bank from onboarding new customers via mobile banking, online channels, and issuing new credit cards.[41] Existing customers were not affected. The RBI cited deficiencies in the bank's IT systems as the reason for this action.[42]

See also

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References

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  1. ^ a b c "Kotak Mahindra Bank Consolidated Profit & Loss account, Kotak Mahindra Bank Financial Statement & Accounts" (PDF). bseindia.com. Retrieved 4 May 2024.
  2. ^ "Assets Under Management" (PDF). www.kotak.com. 31 March 2023. p. in PDF on page 17.
  3. ^ a b "Kotak Mahindra Bank Consolidated Balance Sheet, Kotak Mahindra Bank Financial Statement & Accounts" (PDF). bseindia.com. Retrieved 4 May 2024.
  4. ^ "Annual Report 2024" kotak.com (15 July 2024).
  5. ^ "About our Stock Broking Services". Kotak Securities®. 27 September 2014.
  6. ^ "List of private banks by market capitalization". moneycontrol.com. Retrieved 23 April 2019.
  7. ^ "Press Release Q3FY24" (PDF).
  8. ^ "How Uday Kotak, world's richest banker, made $16 bn after a brush with death". mint. 18 December 2020.
  9. ^ "1 Lakh Investment Turned Into 1,400 Crores In 32 Years. This Is For Real". NDTV.com. Retrieved 15 June 2022.
  10. ^ "Kotak Mahindra Bank Ltd". Business Standard India. Retrieved 15 June 2022.
  11. ^ Philip, Lijee; Ganguli, Bodhisatva. "Kotak Mahindra to buy Ford's stake in Primus". The Economic Times. Retrieved 15 June 2022.
  12. ^ "Retail brokerage's the key unit: Kotak". The Economic Times. Retrieved 22 October 2022.
  13. ^ "Kotak Mahindra Asset Management Company Limited" (PDF). CARE Ratings. Retrieved 22 October 2022.
  14. ^ "Kotak Mahindra, Old Mutual get nod for life insurance JV". www.rediff.com. Retrieved 15 June 2022.
  15. ^ "RBI gives Kotak Mahindra banking licence". The Times of India. Retrieved 15 June 2022.
  16. ^ "Kotak Mahindra Finance in limelight". www.rediff.com. Retrieved 15 June 2022.
  17. ^ "Kotak Mahindra, Ford to end JV". The Economic Times. Retrieved 15 June 2022.
  18. ^ "Kotak Mahindra Prime Limited". ICRA. Retrieved 15 June 2022.
  19. ^ "Kotak, Goldman Sachs part ways - Global financial powerhouse plans $1-bn investment in India". The Telegraph. Retrieved 22 October 2022.
  20. ^ "Kotak to buy 15% stake in MCX for Rs 459 cr". Business Standard. 21 July 2014. Retrieved 8 November 2022.
  21. ^ "Kotak Bank acquires ING Vysya for INR 15,000 crore". The Hindu. Mumbai. 20 November 2014. Retrieved 15 April 2015.
  22. ^ "ING Vysya staff seek job surety from Kotak". Business Standard India. BusinessStandard. 6 December 2014. Retrieved 15 April 2015.
  23. ^ "Kotak Mahindra Gen Insurance gets IRDAI nod to commence biz". Moneycontrol. Retrieved 22 October 2022.
  24. ^ "Airtel Payments Bank launched, with vow to shake up old banking system". mint. 12 January 2017. Retrieved 1 May 2021.
  25. ^ S, Rajalakshmi (30 September 2016). "Kotak Bank to acquire 99.5% stake in BSS Microfinance". The Hindu Business Line. Retrieved 8 November 2022.
  26. ^ Kotak811, Kotak811. "About Kotak811".{{cite web}}: CS1 maint: numeric names: authors list (link)
  27. ^ Balakrishnan, Ravi (24 May 2017). "Life after 8/11: Banks believe the customers will return, once they're done flirting with e-wallets". The Economic Times. Retrieved 7 November 2022.
  28. ^ "Kotak Bank Launches 811 'Zero Balance, Zero Charge' Account. Details Here". NDTV. Retrieved 7 November 2022.
  29. ^ "How Kotak Mahindra Bank Scripted Marketing History". Forbes India. Retrieved 7 November 2022.
  30. ^ Sinha, Shilpy. "Kotak to buy out Old Mutual in insurance JV". The Economic Times. Retrieved 15 June 2022.
  31. ^ "Kotak Mahindra Bank sells 20 crore shares in Airtel Payments Bank for Rs 295 crore". Economic Times. Retrieved 22 October 2022.
  32. ^ "Kotak Mahindra acquires vehicle financing portfolio of Volkswagen Finance". Mint. 16 September 2021. Retrieved 8 November 2022.
  33. ^ "Kotak Prime acquires passenger vehicle financing portfolio of Ford Credit". Mint. 22 December 2021. Retrieved 8 November 2022.
  34. ^ Mishra, Lalatendu (8 July 2022). "Kotak Mahindra Bank acquires agri, healthcare portfolio of DLL India". The Hindu. Retrieved 17 February 2023.
  35. ^ "Kotak Mahindra Bank acquires microlender Sonata for Rs 537 cr in all cash deal - ET BFSI". Economic Times. Retrieved 17 February 2023.
  36. ^ "Zurich Insurance to buy 70% stake in Kotak arm upfront in amended deal". The Economic Times. 7 March 2024. Retrieved 3 May 2024.
  37. ^ "Investor Presentation" (PDF).
  38. ^ "Top banks on a slide; smaller peers do better: Brand Finance study – The Smart Investor". Retrieved 3 September 2015.
  39. ^ The Banker. "The Banker – The Banker". Retrieved 3 September 2015.
  40. ^ "Kotak Mahindra Bank, Uday Kotak jointly pledge ₹50 to PM-CARES Fund". Livemint. 29 March 2020. Retrieved 2 July 2020.
  41. ^ Vyas, Hitesh (24 April 2024). "RBI bars Kotak Mahindra Bank from onboarding new customers via online, mobile banking channels". The Indian Express. Retrieved 15 May 2024.
  42. ^ Ghosh, Saptaparno (7 May 2024). "The Kotak Mahindra Bank controversy | Explained". The Hindu. ISSN 0971-751X. Retrieved 15 May 2024.

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Further reading

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  1. ^ "Kotak811 Zero Balance Account". Outlook India. 13 August 2024.
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