Saving Account interest Rate : Kotak Mahindra Bank has shocked its customers. Private bank Kotak Mahindra has announced a cut in interest rates on savings accounts.
Now the bank will pay 3% interest to those with a balance of less than ₹ 5 lakh, which was 3.5% earlier. However, there has been no change in the interest rate on balances above ₹ 5 lakh. Earlier the bank used to pay 3.5% interest on balances less than ₹ 50 lakh and 4% on more than that. The share of savings accounts in the total deposits of Kotak Mahindra Bank is about 28%. Therefore, this cut in interest rates matters for small investors, who will now get less interest on their savings than before.
The target is to be included in the top 3 banks
Bank MD and CEO Ashok Vaswani said that his aim is to make Kotak Bank one of the top three banks in India in the next five years. Currently, the bank’s market cap is ₹3.7 lakh crore and it is ranked fourth after HDFC Bank, ICICI Bank, and Axis Bank. Vaswani said that the bank will adopt new methods keeping in mind the special needs of the customers. Especially in the areas of affluent and corporate banking where the bank intends to expand.
New plans and strategies
Kotak Mahindra Bank is not only changing the interest rates but is also working on new schemes for the customers. According to Vaswani, the bank plans to increase its services to different customer groups, so that its market position can be strengthened. Overall, Kotak Mahindra Bank is changing the interest rates and working on new strategies according to the needs of the customers to achieve its goals.
