Kotak Mahindra Bank may acquire smaller players

Uday Kotak, VC & MD of Kotak Mahindra Bank, has set stiff expansion targets. The bank, which took over a decade to grow to 500 branches, is set to double its network in another three years. Also, the RBI has asked the bank to bring down the promoters’ stake from 45% to 20% by March 2018. But the scope for diluting capital through fresh issuance is limited, considering that it has a capital adequacy of over 16%. And bank stocks — despite the recent improvement — are still not doing well. According to bankers, this gives Kotak an option to play the consolidation card by acquiring some smaller players and the bank is believed to be looking at such opportunities. 

TOI