No, Kotak Bank is not a nationalised bank in India. But the story behind this bank is super interesting, like how it actually became one of the fastest-growing private banks, mainly because of the online banking scene that is growing super fast right here in India.
Brief History of Kotak Mahindra Bank
The story of Kotak really began in 1985. A company was registered under the name Kotak Capital Management Finance Ltd. At the outset, the company was set up mainly to provide services related to bill discounting, leasing, and hire purchase.
Later, the company formed alliances with big names like Ford Credit and Goldman Sachs. It also started Kotak Mutual Fund and a life insurance concession with Old Mutual. In 2003, Kotak received permission from the RBI to convert into a full-fledged bank, you know, the only non-banking finance company to do so in the country at that time.
The merger between Kotak and ING Vysya Bank, in 2015, was yet another occasion on which Kotak enhanced its stature in the banking scene. Like, this was followed by the launch of Kotak 811-a digital zero-balance account; entry into payments banking with Airtel; and growth in microfinance and vehicle loans.
The matter came into action in 2024, in which RBI stopped Kotak from acquiring any new digital customers or issuing new credit cards for a while, given some hold-up in regard to its IT systems. The bank is working on fixing those problems now.
Current Financial Condition of Kotak Mahindra Bank
Starting out just in 1985 and becoming the 4th largest overall bank in the country isn’t just a small thing. Just look at the financial numbers given below and you’ll know how this bank pulled this off.
- Total Assets: ₹7.67 lakh crore
- Customer Advances: ₹4.30 lakh crore
- Investments: ₹1.75 lakh crore
- Net Profit (FY 2023–24): ₹18,213 crore (up from ₹14,925 crore last year)
- Net Interest Margin (NIM): 5.3%
- Profit Growth: 38% over the previous quarter, 18% YoY
- CASA Ratio: 45.5%
- Credit-to-Deposit Ratio: 83.8%
- Net NPA: 0.34%
- Market Capitalisation: ₹4 lakh crore+
