Kotak’s journey towards excellence:10 points Uday Kotak said in Kotak Mahindra annual report as he step down soon | Mint – Mint

Here are some of the points Kotak highlighted in his last annual letter:

In the last one year alone, we have onboarded a new CTO, a Chief of Customer Experience, a Head of Brand, Product and Marketing and a Chief of Retail and Commercial Risk to drive potentially transformative changes in each of these areas. At the same time we will grow internal talent, which is future ready.

Here are some of the points Kotak highlighted in his last annual letter:

In the last one year alone, we have onboarded a new CTO, a Chief of Customer Experience, a Head of Brand, Product and Marketing and a Chief of Retail and Commercial Risk to drive potentially transformative changes in each of these areas. At the same time we will grow internal talent, which is future ready.

I would like us to pursue the Indian dream of a USD 30 trillion economy and unshackle the financial sector in a nuanced manner towards optimum regulation. The Finance Minister has identified the issues in her 2023 Budget speech Para- 99 that seeks to bring feasible public consultation into the process of regulation making and Para-100 that targets a comprehensive review of existing regulations to ease and cut down the cost of compliance. I look forward to seeing progress on that.

I would like us to pursue the Indian dream of a USD 30 trillion economy and unshackle the financial sector in a nuanced manner towards optimum regulation. The Finance Minister has identified the issues in her 2023 Budget speech Para- 99 that seeks to bring feasible public consultation into the process of regulation making and Para-100 that targets a comprehensive review of existing regulations to ease and cut down the cost of compliance. I look forward to seeing progress on that.

Moving to the big picture. Geo-politics dominates the world economics and India has indeed played its cards well. From oil diplomacy which has given India access to cheaper oil to a strategic positioning among the US, Russia and China, India has pivoted herself to be a key player for Europe, the Middle East, Japan and Australia as well.

Moving to the big picture. Geo-politics dominates the world economics and India has indeed played its cards well. From oil diplomacy which has given India access to cheaper oil to a strategic positioning among the US, Russia and China, India has pivoted herself to be a key player for Europe, the Middle East, Japan and Australia as well.

Indian economy in a sweet spot, good time for bold thinking: Indian macro is in good shape. So is the micro. At this stage, a virtuous cycle for India is on the cards. Our financial sector is in its Goldilocks period. Clock striking midnight seems far away for Cinderella. Hence, this is the time to ask ourselves the tough questions. What are we doing for a USD 30 trillion economy by 2047 when India completes 100 years of Independence? Our financial sector needs significant capacity building for this aspiration.

Indian economy in a sweet spot, good time for bold thinking: Indian macro is in good shape. So is the micro. At this stage, a virtuous cycle for India is on the cards. Our financial sector is in its Goldilocks period. Clock striking midnight seems far away for Cinderella. Hence, this is the time to ask ourselves the tough questions. What are we doing for a USD 30 trillion economy by 2047 when India completes 100 years of Independence? Our financial sector needs significant capacity building for this aspiration.

I feel the financial sector players risk becoming more robotic, curbing the entrepreneurial flair since the fear of making a mistake overrides the joy of creation and development. While we need ‘Arjuna’s eye’ on risk management, we must prevent bureaucratisation of financial services.

I feel the financial sector players risk becoming more robotic, curbing the entrepreneurial flair since the fear of making a mistake overrides the joy of creation and development. While we need ‘Arjuna’s eye’ on risk management, we must prevent bureaucratisation of financial services.

The optimism is well reflected in our full-year numbers too, especially in our growth in profits, margins and asset quality standards. In FY 2022-23, our Net Profit at the consolidated level witnessed a 23% YoY growth to ₹ 14,925 crore. The Return on Assets (ROA) at the consolidated level was 2.62% for FY 2022-23 (2.36% for FY 2021-22). Our Bank Standalone Net Interest Margin (NIM) stood at 5.33% (up 72 bps against FY 2021-22) and our Net Profit witnessed a 28% YoY growth to ₹ 10,939 crore.

The optimism is well reflected in our full-year numbers too, especially in our growth in profits, margins and asset quality standards. In FY 2022-23, our Net Profit at the consolidated level witnessed a 23% YoY growth to ₹ 14,925 crore. The Return on Assets (ROA) at the consolidated level was 2.62% for FY 2022-23 (2.36% for FY 2021-22). Our Bank Standalone Net Interest Margin (NIM) stood at 5.33% (up 72 bps against FY 2021-22) and our Net Profit witnessed a 28% YoY growth to ₹ 10,939 crore.

Reflecting our conviction and commitment to growth, we grew our Net Advances in the year by 18% YoY of which our unsecured retail advances book (including retail microfinance) forms 10% of Net Advances as on 31st March, 2023. Our CASA stood at 52.8%, Capital Adequacy Ratio (CAR) at 21.8% with CET1 at 20.6%.

Reflecting our conviction and commitment to growth, we grew our Net Advances in the year by 18% YoY of which our unsecured retail advances book (including retail microfinance) forms 10% of Net Advances as on 31st March, 2023. Our CASA stood at 52.8%, Capital Adequacy Ratio (CAR) at 21.8% with CET1 at 20.6%.

As on 31st March, 2023, the total Assets Under Management (AUM) for Kotak Group was more than ₹ 4,20,800 crore with our alternate assets book showing a growth of about 125% YoY at ₹ 46,077 crore (Include undrawn commitments, wherever applicable).

As on 31st March, 2023, the total Assets Under Management (AUM) for Kotak Group was more than ₹ 4,20,800 crore with our alternate assets book showing a growth of about 125% YoY at ₹ 46,077 crore (Include undrawn commitments, wherever applicable).

We were at the right place at the right time. We are a quintessential product of the India growth story and the financial sector evolution. We have created value for stakeholders and now provide ~100,000 direct jobs and a multiple of that in indirect jobs. An investor who invested ₹ 10,000 with us in 1985 would be worth ~ ₹ 300 crore today. Most importantly, we have built an institution, on the basic tenets of trust and transparency.

We were at the right place at the right time. We are a quintessential product of the India growth story and the financial sector evolution. We have created value for stakeholders and now provide ~100,000 direct jobs and a multiple of that in indirect jobs. An investor who invested ₹ 10,000 with us in 1985 would be worth ~ ₹ 300 crore today. Most importantly, we have built an institution, on the basic tenets of trust and transparency.

Going forward, I see my role as a non-executive board governance member and a strategic shareholder with a long term perspective of nurturing a world class institution. It is unusual in today’s world of banking anywhere to have an individual with ~26% skin in the game with disproportionate family assets in one stock, emotionally attached to living his dream of making India proud.

Going forward, I see my role as a non-executive board governance member and a strategic shareholder with a long term perspective of nurturing a world class institution. It is unusual in today’s world of banking anywhere to have an individual with ~26% skin in the game with disproportionate family assets in one stock, emotionally attached to living his dream of making India proud.

I end with my favourite quote from George Bernard Shaw: “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.”

I end with my favourite quote from George Bernard Shaw: “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.”

In conclusion he said, in order to build a sustainable institution for the future, Kotak recognizes the importance of product excellence, customer obsession, and trust. The company has already embarked on a mindset shift, moving from the physical to the “phygital” world, and now leaping towards a “digical” approach. This journey involves living with conflicting emotions of paranoia and excitement, as they navigate the ever-evolving landscape of technology and artificial intelligence.

In conclusion he said, in order to build a sustainable institution for the future, Kotak recognizes the importance of product excellence, customer obsession, and trust. The company has already embarked on a mindset shift, moving from the physical to the “phygital” world, and now leaping towards a “digical” approach. This journey involves living with conflicting emotions of paranoia and excitement, as they navigate the ever-evolving landscape of technology and artificial intelligence.