Kotak Mahindra Bank to Accelerate Branch Expansion

25 Jun 2024 CW Team

"We have been adding roughly 150 odd branches for several years now. This year too, the momentum is going to continue," said Virat Diwanji, Group President and Head of Consumer Banking at Kotak Mahindra Bank, in an email interview with Reuters on Monday.

In April, the RBI barred Kotak from onboarding new customers via its online and mobile banking platforms and from issuing new credit cards. Prior to this, the bank heavily relied on digital means for customer acquisition, with 95% of new personal loans and 99% of new credit cards being issued digitally in the October-December quarter.

Kotak Mahindra Bank, India's fourth-largest private lender, will focus its expansion in areas with abundant deposit availability. Diwanji noted that customer acquisition through branches is gaining significant traction despite the recent challenges.

Financial experts believe this branch expansion strategy may not yield immediate results in terms of new customer acquisition but could enhance the bank?s market presence and reach in the medium-to-long term. "However, that will come with high overhead costs," commented Kranthi Baithini, Director of Equity Strategy at WealthMills Securities.

To address the RBI's concerns, Kotak Mahindra Bank is diligently working to upgrade its IT systems, focusing on fortifying digital payment security controls and complying with regulatory data cybersecurity standards. Diwanji mentioned that the bank has hired over 530 employees, predominantly from tech backgrounds, in the past 12-15 months to support these initiatives.

Despite the current digital restrictions, the bank's commitment to personal and business loans remains steadfast, as it continues to enhance its service capabilities both digitally and through its expanding branch network.

Kotak Mahindra Bank, one of India's leading private lenders, is set to ramp up its branch expansion efforts by adding approximately 175 to 200 new branches in the financial year 2024-25. This decision comes a few months after the Reserve Bank of India (RBI) imposed restrictions on the bank from sourcing new customers through digital channels due to IT-related deficiencies. We have been adding roughly 150 odd branches for several years now. This year too, the momentum is going to continue, said Virat Diwanji, Group President and Head of Consumer Banking at Kotak Mahindra Bank, in an email interview with Reuters on Monday. In April, the RBI barred Kotak from onboarding new customers via its online and mobile banking platforms and from issuing new credit cards. Prior to this, the bank heavily relied on digital means for customer acquisition, with 95% of new personal loans and 99% of new credit cards being issued digitally in the October-December quarter. Kotak Mahindra Bank, India's fourth-largest private lender, will focus its expansion in areas with abundant deposit availability. Diwanji noted that customer acquisition through branches is gaining significant traction despite the recent challenges. Financial experts believe this branch expansion strategy may not yield immediate results in terms of new customer acquisition but could enhance the bank?s market presence and reach in the medium-to-long term. However, that will come with high overhead costs, commented Kranthi Baithini, Director of Equity Strategy at WealthMills Securities. To address the RBI's concerns, Kotak Mahindra Bank is diligently working to upgrade its IT systems, focusing on fortifying digital payment security controls and complying with regulatory data cybersecurity standards. Diwanji mentioned that the bank has hired over 530 employees, predominantly from tech backgrounds, in the past 12-15 months to support these initiatives. Despite the current digital restrictions, the bank's commitment to personal and business loans remains steadfast, as it continues to enhance its service capabilities both digitally and through its expanding branch network.

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..