With Uday Kotak, Vice Chairman and Managing Director of Kotak Mahindra Bank, introducing his son Jay Kotak at an investor meeting in Mumbai on Thursday, markets will now closely watch developments in succession planning at the lender. from the private sector. The senior Kotak’s tenure at the helm ends in December 2023. Jay Kotak is currently co-head of the bank’s digital-only platform, 811, which accounts for nearly 30% of the bank’s savings account during of T4FY22.
“We will be watching succession planning closely, with perhaps two EDs in the fray (KVS Manian and Shanti Ekambaram) for the MD post, and the impact, if any, of potential holdco standards by the RBI. “, Emkay analysts said in a report.
Earlier this month, Uday Kotak said he would be with the bank at least until the end of his term. “Right now my term is until December 2023 and you’re going to see me at least until then,” Kotak had said, adding, “Our board members are fully aware of their responsibilities and they will act responsibly. ‘in an appropriate and responsible manner.’
According to analysts who attended the call to investors, KMB added nearly four million customers through 811 in FY22, bringing the total number to 12.3 million. The number of monthly active users stood at 6.2 million, half of the overall 811 customer base. at the overall bank level. That appears to be weak relative to peer banks, Emkay analysts observed. The contribution of 811 product to incremental recurring deposits (RD) was 34% in the fourth quarter, and to new personal loans and non-life insurance premiums it was 32%.
The bank’s management told analysts that aggregate debit is a better metric to track than savings balances because most of those customers are young and are primarily big spenders.
Analysts have differing views on 811’s performance. While Motilal Oswal Financial Services praised the execution of KMB’s digital strategy, Emkay analysts attributed 811’s success to the higher savings rate offered by the bank. Since launching the platform, the bank’s Current Account Savings Account (CASA) ratio has improved to 61% from 44% in FY17.