Kotak Mahindra Bank is now worried about its image after the Reserve Bank of India (RBI) action. A senior Kotak Mahindra Bank official said this will have limited financial impact but we are more concerned about the reputational damage. Let us tell you that late last month, the RBI stopped Kotak Mahindra Bank from issuing new credit cards through its online and mobile banking channels because of deficiencies in the bank’s IT risk management.
What did the bank official say?
Kotak Mahindra Bank Managing Director (MD) and Chief Executive Officer (CEO) Ashok Vaswani said the RBI’s move will have limited impact on liability growth. He said that the bank is doubling its efforts on the technology front and regaining trust is now the top priority for the bank. He acknowledged that the order would affect the credit card business and its digital banking-focused businesses. Vaswani said- I am more concerned about the reputational impact than the financial impact. Let us tell you that Vaswani took charge in January this year.
Bank Quarterly Results
Kotak Mahindra Bank’s profit rose 18 percent in the March quarter last fiscal to Rs. 4,133 crores. In the same quarter of FY 2022-23 it was Rs. 3,496 crores. In the March quarter, its total revenue rose to Rs. 15,285 crore as against Rs. 12,007 crores. The board of directors of the company for the last financial year has allocated Rs. 2 has been recommended as a dividend.