Kotak’s next big challenge: Retaining savings customers
Kotak Mahindra Bank’s savings account growth has been seeing a steady decline over the last seven quarters
Kotak Mahindra Bank reported a 0.8% drop in savings account deposits at the end of Q2FY23
MUMBAI : Kotak Mahindra Bank has the highest current and savings account (Casa) ratio—or low-cost funds—among Indian banks at 56.2%. Yet Uday Kotak, the managing director and chief executive officer, is concerned, considering that savings account growth has been declining steadily for the last seven quarters, after it slashed the interest rate from 6% to 3.5% in multiple tranches. Kotak Mahindra Bank reported a 0.8% drop in savings account deposits at the end of the September quarter to ₹1.22 trillion compared with ₹1.23 trillion a year ago. Kotak, in the earnings call, ascribed this drop to the higher interest rates being offered by other products.