Kotak Mahindra Bank Targets Affluent Segment

Mumbai, Jul 23 (PTI) Private sector lender Kotak Mahindra Bank on Wednesday launched a programme for offering dedicated credit cards and loans to the "underserved" affluent segment.

The bank's head of affluent segment Rohit Bhasin said the segment, "defined as ones with an overall relationship value between Rs 75 lakh to Rs 8 crore", is the fastest growing segment in the country but also "underserved".

Less than 1 per cent of the bank's overall 5.3 crore customers are from the affluent segment, and they contribute over 35 per cent of the overall business, he said.

Bhasin said the bank's market share in the affluent segment is 4 per cent, as compared to its 2 per cent overall banking market share, and added that the aim is to grow on the 4 per cent with offerings like 'Solitaire'.

The newly launched offering is by invite only, and does not come with any fees till the relationship value across products lines like borrowings, credit cards, mutual funds, demat accounts and insurance is maintained by the customer, Bhasin said, adding that charges will get triggered based on reviews.

Under the new offerings, the bank is offering products like credit cards and specially-designed loans, and will also act as a distributor for group companies' products and services, Bhasin said.

Without giving any business targets from the newly launched programme, he exuded confidence that it will be a profitable business to be in and added that the bank has piloted the offerings for over two months before the launch.

Bhasin said the offering is also directed at the salaried and self-employed segments, and comes with a slew of features like pre-approved credit lines of up to Rs 8 crore across lending products and advantages for the family like lounge access at airports.