Kotak will work to raise its share of financial services: MD
Public sector banks, which control 70% of the loan and deposit market, would see their share eroding as private sector banks could increase their share to 50% in five years, Uday Kotak, vice-chairman and managing director, Kotak Mahindra Bank said on Tuesday.
“India has the potential to be a US$ 10 trillion economy by 2030. I believe that over the next five years, private sector banks can increase their market share from 30% to 50%. We see immense opportunity and we will work to disproportionately increase Kotak’s share of the financial services pie,” Mr. Kotak told the media.
The private sector lender, which had in March last year unveiled ‘811’, an OTP-based authentication process for opening bank accounts, said the move helped the bank to gain customers in a rapid pace – from 8 million to 12 million as on end December.
Nandan Nilekani, the chief architect of Aadhaar, said that the United Payments Interface would be a game changer and the number of transactions would hit the one-billion mark by December-end, from 172 million now, making it the largest digital payment system in India.
‘Platform for innovation’
“In 2009, when we started the Aadhaar project the primary goal was to enable direct benefit transfers and today India runs the world’s largest direct benefit transfer programme. But we also realise that it is about creating a platform, a platform that can be used for innovation and that is how it led to the creation of e-KYC of Aadhaar,” Mr. Nilekani said.