In a media interview, Kotak Bank’s CEO, Ashok Vaswani has communicated his target to be the 3rd largest private bank by 2030.
- From the interaction it was unclear whether the aspiration is on balance sheet, profits, ROE or all.
- As of now Kotak is the 4th largest private bank after HDFC, ICICI and Axis.
- In continuation with the bank’s culture, the focus would be on profitable growth.
- Bank is open to grow through the inorganic route as well. Speculation around it’s acquisition of the IDBI bank has not seen any progress (due to delays on divestment by GoI).
- For subsidiaries, the target is at least number five. If already five, then number three.
Other key takeaways from the inteview.
- No plan to monetise subsidiaries for now as those businesses continue to do well and bank doesn’t need capital.
- Wrt to the recently imposed RBI restrictions, bank is working hard to take the corrective actions.