KMFL to promote new bank

By Our Special Correspondent

MUMBAI, MARCH 28. Kotak Mahindra Finance Ltd. proposes to promote a new company to enter the banking business.

The company board today approved the foray into commercial banking and resolved to make an application to the Reserve Bank of India within the timeframe stipulated in the RBI guidelines on entry of new banks in the private sector.

Talking to The Hindu Mr. Deepak Gupta, executive director, Kotak Mahindra Finance, said when the board met three months ago it felt that the two areas missing in its bouquet of financial services were broking and banking. The company already started the broking business and ``banking is an opportunity and we are interested in going for it. Eventhough there is an option to get into the banking business through the acquisition route, ``the company prefers to start afresh,'' Mr. Gupta added. Kotak Mahindra Finance is one of the leading diversified financial services companies with operations covering auto and consumer finance, asset management, investment banking and securities trading and research.

The Kotak Mahindra group has an extensive branch network across India, managing relationships with over five lakh individual customers and 400 corporate houses. The group also has joint ventures with Goldman Sachs in investment banking, Ford Credit in auto finance and Old Mutual in insurance.

The group has a presence, either directly or through its subsidiaries, in asset financing, investment banking and mutual funds. With its entry into life insurance, broking and distribution business and now into banking, the company will be offering a full bouquet of financial services products.

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