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Kotak Mahindra`s banking operations soon
Kotak Mahindra Group is hopeful of staring banking operations within 6-8 months with Rs 500 crore networth and has kept options open to rope in a foreign partner in its bank.
Kotak Mahindra Group is hopeful of staring banking operations within 6-8 months with Rs 500 crore networth and has kept options open to rope in a foreign partner in its bank.
"We are hopeful to start banking operations in 6-8 months. We will have a networth of about Rs 500 crore, which is much higher than Rs 200 crore stipulated by RBI for private banks," Kotak Mahindra Finance Vice Chairman Uday Kotak said in New Delhi.
Kotak Mahindra Finance obtained RBI's permission a few months back to transform into a bank after meeting a host of stringent conditions. The bank is likely to be named 'Kotak Mahindra Bank'.
The Kotak Mahindra Group, which has ties with Goldman Sachs for investment banking and Old Mutual for life insurance business, has kept options open for including a foreign partner in the bank. "Options are open. We will evaluate whether there is a need for it," Kotak said. Foreign institutional investors can also hike their stake by buying Kotak Mahindra Finance shares from the secondary market.
Elaborating on the transformation from a NBFC to a bank, Kotak said the assets of the country's leading NBFC would be transferred to the bank. The NBFC, having operations in almost major cities and towns, would convert its outfits into bank branches.
He said the bank would start with a capital adequacy ratio of over 10 per cent, as against the minimum RBI stipulated 9.0 per cent for scheduled commercial banks. Bureau Report
Kotak Mahindra Finance obtained RBI's permission a few months back to transform into a bank after meeting a host of stringent conditions. The bank is likely to be named 'Kotak Mahindra Bank'.
The Kotak Mahindra Group, which has ties with Goldman Sachs for investment banking and Old Mutual for life insurance business, has kept options open for including a foreign partner in the bank. "Options are open. We will evaluate whether there is a need for it," Kotak said. Foreign institutional investors can also hike their stake by buying Kotak Mahindra Finance shares from the secondary market.
Elaborating on the transformation from a NBFC to a bank, Kotak said the assets of the country's leading NBFC would be transferred to the bank. The NBFC, having operations in almost major cities and towns, would convert its outfits into bank branches.
He said the bank would start with a capital adequacy ratio of over 10 per cent, as against the minimum RBI stipulated 9.0 per cent for scheduled commercial banks. Bureau Report