Kotak’s succession plan will start this year

Last month, Uday Kotak introduced his son at an event. Has the bank started with succession planning?

Succession planning has nothing to do with son. It is a scheduled commercial bank regulated by a central bank. Family members are not allowed. Jay is just a good employee. If he does well, he will proceed in the normal way. For succession, there are various pieces going on. We will start the process sometime later this year.

Any impact on credit growth due to rising interest rates?

It doesn’t look bad right now. Even though policy rates may go up, there is a catch. It depends on how inflation plays out. If inflation returns to reasonable levels, growth will continue.

Why did net profit decline on a sequential basis?

We have approx. took a mark-to-market hit of 800 crores, and if you add that back, it’s a good jump. Short-end interest rates have swung closer to 150-200 basis points in the quarter alone. Despite being a short duration book, it has had an impact on the small end. We do not run a large HTM (Hold-to-Maturity) book. We usually keep it outside the HTM. This will help in improving margins in future. Either we take the pain for granted, or we keep it in HTM.

Why has slippage increased sequentially?

That total number has two parts. 800 crore 1,400 crore is being generated from a specific RBI circular, called “000 circular”. RBI introduced a new variable last year, where if in a quarter of a customer’s account… let’s say if you get interest debit of X amount, then you have to see debit of the same amount. end of june 800 crore accounts slipped due to “000”. But over the next few days, the customer puts that money, so it goes back to the normal account. Therefore, net slippage is only 600 crores. These are technical NPAs. These criminals are not NPAs.

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