Kotak Mahindra Bank, which had deferred branch expansion plans during the last fiscal, due to the economic slowdown and the steep increase in lease rentals is now expanding its network at a moderate pace.
Retail Liabilities and Branch Expansion Group Head Mr K.V.S Manian said, “Now, we are back to expanding our branch network. We have licences to go up to 280 this fiscal. We are at 217 now and will look to close this fiscal with 255 branches. We may add another 50-60 branches during the next year. We intend to expand, albeit moderately. Last fiscal was a tumultuous one for the bank due to rising delinquencies, particularly in the cards and personal loan segments. Things look much better now. There is a clear evidence of a pick up in the home and car loan portfolios.”
Mr Manian continued, “Car loan business has doubled in the last six months from Rs 175 crore a month to over Rs 350 crore a month at present. We also feel that the prices of flats and residential houses are on the decline, instilling confidence in the borrower to take advantage of the present situation. Our growth here is Rs 200 crore a month against Rs 100 crore a month last year.”
He further said that the bank were not actively interested in the two wheeler loans segment and preferred to advance personal loans.