Kotak Mahindra Bank, India's newest private sector bank, is not looking for any partner for the next two to three years. Nor does it have any plan to pick up any regional bank to increase its coverage.
"My dream is to position Kotak Bank as a global Indian company. I will not look for any partner for the next two to three years," said Uday Kotak, 44-year old vice-chairman and managing director of the bank, when asked if he was looking for a strategic investor.
The bank, which got the Reserve Bank of India's nod in February this year, now has 600,000 customers. They are either serviced by the bank or by its securities arm or by the group's insurance company.
Kotak Securities Ltd has 200 distribution centres, the insurance company 40 and the group's auto finance division another 60. The bank has 30 old branches and 18 new ones.
Collectively, the group has a presence in 70 cities across the country through these distribution centres and 5000-odd ATMs which Kotak customers can access by virtue of its tie-up with UTI Bank and Visa.
"The hardware is already in place. We are building the software now - advisory services. Our target is the mass affluent class of society with an annual household income of Rs 450,000. There are 9 million such households in the country. We want to be their preferred bank," Kotak told Business Standard while explaining his strategy of positioning the bank as a financial services player which also does banking.
Kotak said that in addition to mutual funds, insurance and equity products and traditional banking products, the bank was also planning to advise its customers on alternative assets like commodities and real estate.
The new private bank has also discovered that the traditional savers are converting themselves into investors. It is ready to play a major role in this transition.
"As interest rates fall, a nation of savers is turning itself into a nation of investors. We are ready with tailor-made models for them on where to invest and how to invest. Financial products are no more in the limelight. At centre stage are customers and we make sure that they are investing in right products. These products are not necessarily developed by us. We are distributing others' products as well," Kotak said.
"We have the advantage of having come on the scene last. As you grow in scale and size, you carry baggage. We don't have any baggage," said Kotak.
In the positioning game, Kotak's strategist is Piyush Pandey, group president & national creative director of Oglivy & Mather.
"Traditionally, all financial intermediaries inspire awe in customers. We are humanising this role. Kotak is your personal investment advisor. It understands your needs, expectations and ambitions. It can tailor-make products for you," Pandey explained.
