Kotak CEO reveals a lot on RBI cuts, deposit wars and banking’s next big moves

Reserve Bank of India (RBI) is expected to announce another rate cut in April, and its impact on bank fixed deposit (FD) rates remains a key question. Ashok Vaswani, Managing Director and CEO of Kotak Mahindra Bank, in a interview to ToI said he believes that while the previous 25-basis-point cut has not yet led to lower deposit rates, a total reduction of 50-75 basis points could start influencing term deposit pricing. He expects significant movement in the banking sector over the next 6-12 months.

Deposits remain a critical focus for banks, with last year witnessing a competitive battle for attracting funds. Vaswani acknowledges that securing deposits is not just about volume but also pricing. To sustain growth, Kotak Mahindra Bank is leaning on product innovation, customer-centric offerings, and its digital platform, 811. However, liquidity constraints persist, making it too soon to determine whether conditions will improve. The bank continues to monitor macroeconomic trends closely.

Also Read: Billionaire Uday Kotak’s private bank adds thousands of clients

Despite expectations of economic expansion, private investment has yet to show significant improvement. Vaswani observes that global uncertainty, particularly the threat of US tariffs, is keeping businesses cautious. However, he sees potential opportunities for India as Europe adjusts to its own economic challenges, which could benefit the domestic economy.

Under Vaswani’s leadership, Kotak Mahindra Bank is striving to enhance customer service while also