RBI's ban to impact reputation of Kotak Mahindra Bank more than financial: Ashok Vaswani
Kotak Mahindra Bank is stepping up efforts and investments to resolve technology concerns raised by the banking regulator and regain approval to resume normal operations, said Ashok Vaswani, managing director and chief executive officer, on Saturday.
The lender reported an 18% rise in net profit from a year ago at Rs 4,133 crore in the three months ended March 31. Profit got a boost from higher interest income due to lending besides lower provisions and income tax refunds.
Vaswani said the Reserve Bank of India’s curbs have an impact on the franchise and reputation though the financial impact is expected to be limited.
«My priority is to get back to business as usual and get ready to come back roaring,” he said in his first media interaction since taking charge on January 1, and within a fortnight of the RBI imposing a ban on onboarding new customers online or through the mobile app as well as issuing new credit cards.
Kotak811, the digital product launched to attract customers, helped onboard 72% new customers in the last financial year.
»What is evident is that our efforts have fallen short of what the regulator expects. My commitment is to further accelerate our efforts and investments. Winning back the trust and reputation with our customers and regulators is number one priority for me and management,” Vaswani said after a board meeting to discuss March quarter earnings.
He added the focus will now shift from customer acquisition to cross-selling products to existing customers.
«The restrictions will not
