Kotak Mahindra Bank has surprised its customers by reducing the interest rates on savings accounts.
The bank will now offer 3% interest for customers with balances below ₹5 lakh, down from the previous 3.5%.
However, the interest rate remains unchanged for balances above ₹5 lakh. Previously, the bank provided 3.5% interest on balances under ₹50 lakh and 4% on amounts above that.
Since savings accounts make up about 28% of Kotak Mahindra Bank’s total deposits, this change is significant for small investors, who will now earn less interest on their savings.
Goals for Growth
The Managing Director and CEO of Kotak Mahindra Bank, Ashok Vaswani, aims to make the bank one of the top three banks in India within the next five years.
Currently, the bank has a market capitalization of ₹3.7 lakh crore, ranking fourth behind HDFC Bank, ICICI Bank, and Axis Bank.
Vaswani mentioned that the bank will implement new strategies to cater to the unique needs of its customers, particularly in affluent and corporate banking, where they plan to expand.
New Strategies and Customer Focus
Kotak Mahindra Bank is not just changing interest rates; it is also developing new plans for its customers.
According to Vaswani, the bank aims to enhance its services for various customer groups to strengthen its market position.
Overall, Kotak Mahindra Bank is adjusting interest rates and working on new strategies based on customer needs to achieve its goals.
