Kotak Mahindra Bank aims asset growth at up to 2x India's nominal GDP: CEO Ashok Vaswani
aims to grow its assets at 1.5 to 2 times India's nominal GDP, Managing Director and CEO Ashok Vaswani said in the private lender's latest annual report. Brokerage firm Jefferies recently projected India's nominal GDP growth to slow to 9% in FY26.
'From a risk appetite perspective, we target to grow assets at 1.5 to 2 times nominal GDP growth,' Vaswani stated. 'In FY2024-25, our average advances grew by 18%, in line with our risk appetite, and average deposits by 16%, ensuring a balanced customer growth franchise.'
Vaswani noted that the
Reserve Bank of India
's technology embargo primarily impacted the bank's consumer business, while a broader downturn in the microfinance sector affected its commercial banking operations.
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'Our Corporate Bank remained resilient and delivered growth for the Bank. Within the Commercial Bank, our Tractor Finance business was a standout performer, achieving a market share of 11.5%,' he said.
Looking ahead, Vaswani flagged challenges arising from the expected decline in interest rates. 'As we move into the current year, managing the business through a regulatory repo rate cut cycle and identifying avenues for sustainable growth are key challenges that lie ahead,' he added.
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He also highlighted the impact of a turbulent global environment, saying, 'The heightened geo-political tensions and a rapidly evolving, volatile global economic order are new realities, compelling countries—including India—to realign.'
Despite these challenges, he underscored the resilience of the Indian economy, which expanded by 6.5% in FY25. Growth picked up in the second half, supported by the RBI's accommodative measures, including interest rate reductions and liquidity infusions.
As per the annual report, the total consolidated assets of Kotak Mahindra Bank stood at Rs 8.79 lakh crore at the end of FY25. Total advances stood at Rs 4.86 lakh crore while deposits were at Rs 4.94 lakh crore. Number of customers of the bank was upwards of 5.3 crores.
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