Kotak Mahindra Bank plans wealth scheme

Mumbai: Kotak Mahindra Bank Ltd (KMFL), to be operational by 2002-end, proposes to have a wealth management programme, or investment advisory services, for high net-worth individuals as a core area of focus, besides the normal banking operations.

KMFL executive director C Jayaram says the new products are awaiting “regulatory approval.” The bank, which is on a recruitment drive, will be appointing around 20 relationship managers, Jayaram says.

There are also personnel movements within the various subsidiaries, like Kotak Mahindra Capital Company (KMCC) head (investment banking) Shanti Ekambaram, who is to take up the post of head (corporate banking), KMFL. Former head of India Product, UBS Warburg, Ajay Sondhi has taken over Ekambaram’s place in KMCC.

Once the bank is set up, the wealth management programme will come under the bank and Kotak Securities, with specific products handled both by Kotak Securities and Kotak Mahindra Asset Management Company (KMAMC).

“This will help us share the databases, increase cross-selling possibilities and give us transactional capabilities through the deposits of our banking customers,” says Jayaram. Currently, the programme is handled by Kotak Securities and KMAMC. To begin with, the bank will have branches in Mumbai and New Delhi.