Financial Daily from THE HINDU group of publications
Monday, Jan 23, 2006
Financial Daily from THE HINDU group of publications Monday, Jan 23, 2006 |
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Money & Banking
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Private Banks Markets - Financial Services Kotak Mahindra Bank to offer WMS in more cities L.N. Revathy
Coimbatore , Jan. 22 KOTAK Mahindra Bank is looking to expand its branch network and give greater impetus to Wealth Management Services (WMS) in tier II cities. The bank is hoping to widen its network to 90-100 branches by March 2007 in the first phase, from over 50 branches at present. The bank now offers WMS in 10 cities. This is expected to extend to another 4-5 cities over the next 2-3 months. "We have soft launched it in Coimbatore. The other cities we have identified include Kochi, Jaipur and Kanpur. This is an important portfolio for us," Mr C. Jayaram, Executive Director (Wealth Management), Kotak Mahindra Bank, told Business Line. According to Mr Jayaram, business segment was growing faster than any other financial services. "Lots of youngsters are getting richer because of employees stock option, better pay packets and more disposable income. Though historically, there was reluctance to get advise on investments, now people are willing to sit and listen." The bank is targeting high networth individuals/families with a potential to invest Rs 5 crore and above. Sharing Capgemini report, Mr Jayaram said: `There are over 70,000 individuals/families in India, who have financial assets of Rs 5 crore and above, available for investment. This is as per 2004 survey and the number is increasing at 14.6 per cent every year. These individuals are our target group." Kotak Mahindra Bank has engaged 100 Relationship Managers across the country for looking into WMS alone. "There is however no concept of a guaranteed or benchmark return on investment," he said and admitted that despite this risk, more people opted for investment avenues rather than the fixed deposit in banks. The challenge, he said, was in recruiting, retaining and training high quality personnel.
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