Private sector lender Kotak Mahindra Bank ?(KMB) on Friday announced that it is buying out British partner Old Mutual's entire 26 percent stake in its life insurance arm for Rs 1,292.7 crore.
"The RBI has issued a certificate of registration to Kotak Infrastructure Debt Fund Ltd, a subsidiary of the bank, permitting it to commence the business of non-banking financial institution as infrastructure debt fund (NBC-IDF)," the lender said in a regulatory filing this evening.
Jaimin Bhatt, Chief Financial Officer at Kotak Mahindra Bank, said the bank is looking at consolidation opportunities in banking, NBFCs (non-banking financial companies), insurance – both life and general, mutual funds, stock broking, among others.
Banker Uday Kotak feels there will be strong consolidation in the financial services sector and eventually only five players will dominate the space just like in the global space.
The bank, at its Board Meeting, decided to raise Rs 5,500 crore through the issue of up to 6.2 crore equity shares. The fund-raising will lead to an equity dilution of up to 3.4 percent.
Although Kotak Mahindra Bank's press conference yesterday may have disappointed some market participants who were expecting a big bang announcement, the bank made a pitch for a digital play that was in line with the government's own push in that direction.
Kotak Mahindra Bank, in a press conference on Wednesday, launched ‘811’, a zero balance digital account with the aim of doubling its customer base to nearly 16 million in two years.
Unlike payment bank accounts, Kotak Mahindra Bank’s customers can use the 811 account to not only transact, but also avail loans and manage investments.
Moneycontrol did some back-of-the-envelope calculation to figure out if the tall targets on customer acquisition will make any incremental difference to the consensus projection of Kotak Bank’s numbers for FY19.
Kotak Mahindra Bank today announced its strategic plan to double its customer base in next 18 months. For this, the bank has launched a ‘unique new phenomenon called 811’.
Calling a press conference today, and a board meeting tomorrow, definitely tells you that it is a precursor to something big and Axis Bank squarely fits into the scheme of things for Kotak, said Anil Singhvi of Ican Investment Advisors.
Speculations are rife that it could be a big acquisition that the bank is looking at in order to reduce Kotak's promoter stake in the bank.
The bank, in an exchange notification, clarified that the information on MD & CEO Shikha Sharma resigning was false.
Veteran banker and Kotak Mahindra Bank founder Uday Kotak Wednesday appealed to the government to send “strong signals” to encourage the private sector to take “honest risks” and “grow fearlessly”.
At the Growth Net 5th Annual India Summit, Shereen Bhan got together with Prakash Javdekar, HRD Minister, Kiran Mazumdar Shaw of Biocon, Uday Kotak of Kotak Mahindra Bank, Henny Sender of The Financial Times and Nicholas Stern, professor at LSE to discuss the reform agenda in India.
Canada Pension Plan Investment Board and Caisse de Depot et Placement du Quebec acquired a total of 2.76 crore shares, amounting to 1.5 percent stake, in the private sector lender.
India's richie rich club has shrunk by 11 people since the demonetisation last November, while Mukesh Ambani remains the richest Indian with a net worth of USD 26 billion, a study showed today.
It can be noted that almost 20 percent of the banking assets are stressed with the NPAs alone topping 13.5 percent as of the September quarter. While more than 70 percent of the system are with the state-run banks, over 90 percent of the stressed assets with them, leaving them starved of growth capital.
Describing the 24 PSU banks as "the 70 percent problem" (in reference to the over 70percent market share of these banks), he wondered what was the need for so many state-run lenders, which is the highest in the world after China.
The strength of the US dollar will decide the fate of the emerging markets (EMs), said Sanjeev Prasad, Senior ED & Co-Head at Kotak Institutional Equities.
Speaking to CNBC-TV18, Uday Kotak said that the world could see a mega trend which is protectionism and in changing global narrative there will be some slowdown in trade.
It is unlikely that there will be rate hikes in a hurry because the focus is also on getting growth back, Uday Kotak, Managing Director, Kotak Mahindra Bank.