Latest news with #Kotak811
Mint
a day ago
- Business
- Mint
‘90% of India makes less than ₹25,000…': Jay Kotak slams ₹50,000 minimum bank balance rule
ICICI Bank is facing heat after hiking its savings account minimum balance by 5 times, and this time veteran banker Uday Kotak's son Jay Kotak has spoken up against the move. In a post on X without explicitly mentioning the ICICI Bank minimum balance hike, Jay Kotak said 90 per cent of Indians make less than ₹ 25,000 a month. 'Every Indian must access our financial sector. 90% of India makes less than ₹ 25,000 a month. A ₹ 50,000 minimum balance implies a sum equal to ~94% of Indians monthly income is to be left with the bank at all times, else a fee!,' he said. Jay Kotak, who leads Kotak Mahindra Bank's digital banking arm Kotak 811, said digital first is the way to go. 'Implication: physical cost to serve may be high. Digital first is the way. If banks don't do it, fintechs will. Banking should be for all Indians.' The ICICI Bank minimum balance for savings account has been hiked from ₹ 10,000 to ₹ 50,000 for urban accounts. MAB (Minimum Account Balance) for semi-urban locations and rural locations have also been increased five times ₹ ₹ 25,000 and ₹ 10,000, respectively, according to information available on the ICICI Bank website. Non-maintenance of ICICI Bank minimum balance will attract penalty, the bank said. The lender will charge 6 per cent of the shortfall in required MAB, or ₹ 500, whichever is lower, if you stay in an urban area and cannot maintain ₹ 50,000 account balance. The changes are applicable to ICICI Bank savings accounts opened on or after August 1. The minimum balance remains ₹ 5,000 for old customers in rural and semi-urban areas. For old urban customers, the minimum account balance should be maintained at ₹ 10,000. The ICICI Bank minimum balance hike was criticised by many, with social media users calling the move discriminatory and elitist. A user wrote, 'In a country where 23 crore people live below the poverty line, ICICI thinks ₹ 50,000 is a 'minimum'. Masterstroke!' In a letter to the finance secretary, 'Bank Bachao Desh Bachao Manch' termed the private lender's decision as "unjust and regressive". 'This retrograde decision undermines the principle of inclusive banking,' the forum's joint conveners, Biswaranjan Ray and Soumya Datta, claimed.
India.com
2 days ago
- Business
- India.com
90% Indians Earn Less Than Rs 25K/Month: Jay Kotak On ICICI Banks Decision To Hike Minimum Average Monthly Balance To Rs 50,000
New Delhi: Jay Kotak, son of Uday Kotak, has slammed ICICI Bank for raising the minimum average monthly balance for metro and urban savings account holders to Rs 50,000. According to Kotak, several middle-class employees in India still earn Rs 25,000 per month and a minimum balance of Rs 50,000 means that almost 94 percent of their monthly income would always be left with the bank. 90 Percent Of Indians Earn Less Than Rs 25,000 Every Month: Jay Kotak Jay Kotak, the co-head of Kotak811, said that 90 percent of Indians earn less than Rs 25,000 every month. If these people are required to maintain a minimum balance of Rs 50,000, then it will mean that around 94 percent of their monthly income will be left with the bank at all times. "Every Indian must access our financial sector. 90% of India makes less than Rs 25,000 a month. A Rs 50,000 minimum balance implies a sum equal to 94% of Indians monthly income is to be left with the bank at all times, else a fee!" Jay Kotak tweeted on the social media platform X. Kotak pointed out that banks have a high physical cost of service, thus, digital banking is the solution. If banks are unable to adopt it, then fintechs will. "Implication: physical cost to serve may be high. Digital first is the way. If banks don't do it, fintechs will," he said. (Also Read: What Happens When You Don't Get PM Kisan Money For Lack Of Aadhaar Seeding?) Kotak emphasized that the financial sector should be accessible to all Indians, and every individual must have access to it. "Banking should be for all Indians," he said. ICICI Bank raises minimum average monthly balance to Rs 50K According to ICICI Bank's latest notification, the minimum average monthly balance requirement for metro and urban savings account holders will be increased to Rs 50,000 for new accounts, effective August 1. (Also read: How To Update EPFO Date Of Exit Online All By Yourself) The minimum average balance of ICICI Bank is the steepest among major Indian banks, having increased from the previous level of Rs 10,000. A penalty of 6 percent of the shortfall or Rs 500 will be imposed on customers who fail to maintain the minimum average balance.
News18
3 days ago
- Business
- News18
'90% Of India Makes Less Than Rs 25k A Month...': Jay Kotak On ICICI Bank's MAB Hike
Last Updated: Jay Kotak criticized ICICI Bank's hike in minimum balance to Rs 50,000, noting 90% of Indians earn under Rs 25,000 monthly. He suggested a 'Digital First' approach for inclusivity. Jay Kotak, the co-head of Kotak811 and the son of Uday Kotak, has reacted sharply on ICICI Bank's announcement to hike the minimum balance requirement for savings account to Rs 50k from Rs 10k earlier opened on or after August 1, 2025. Kotak emphasized that every Indian must access financial sector, given that 90% of India makes less than Rs 25,000 per month. This move is aimed at expanding its premium customer base, a banker told NDTV Profit on condition of anonymity. The chart from the World Inequality Database (2021) shows India's stark income distribution, where 90% of the population earns below ₹25,000 per month. The bottom half earns less than ₹9,500, while only the top 5% make over ₹64,380, and the top 3% cross ₹1 lakh. Kotak, however, agreed that the physical cost to serve may be high, but he shared that 'Digital First' might be the solution. 'If banks don't do it, fintechs will. Banking should be for all Indians," he added. In metro and urban branches, the minimum average monthly balance (MAMB) will be Rs 50,000, up from the earlier Rs 10,000. In semi-urban branches, it will rise to Rs 25,000 from Rs 5,000, while in rural branches, the requirement will double to Rs 10,000 from Rs 5,000. The higher MAMB will apply only to new accounts opened after August 1. Customers who fail to meet the requirement will face a penalty of 6% of the shortfall or Rs 500, whichever is lower. The move marks a significant shift for one of India's largest private lenders, especially as other banks are softening their penalty structures — State Bank of India, for instance, has already scrapped all minimum balance charges. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
29-07-2025
- Business
- Economic Times
Kotak Bank falls over 7% on disappointing Q1 results
Mumbai: Shares of Kotak Mahindra Bank fell over 7% on Monday, their highest single-day fall in 15 months, after the bank's first-quarter results disappointed investors. Analysts see 2-30% upside in the stock from these levels. The stock ended at ₹1,968.7, down 7.3% from Friday. It was the worst performer on the benchmark Nifty, which fell 0.6%. Macquarie has maintained its 'neutral' rating for the stock, and has a target price of ₹2,300. The brokerage said the bank's credit costs were in line with the third-largest private bank and double those of the top two private banks, which is surprising given the bank's historically strong underwriting practices. ADVERTISEMENT Kotak shares have declined 9% in the past month, against Nifty Bank's decline of 2.1% in this period. SBI Securities estimates the fair value of stock at ₹2,000-₹2,050 over next 12 months and suggests buy-on-dips approach. "Loan and deposit growth remains steady, and with the embargo on the 811 platform lifted and new product offerings in place, performance is likely to improve from Q3 onwards, provided there are no further rate cuts," said Sunny Agrawal, head of fundamental research at SBI Securities. In February, the RBI had lifted the restriction on opening new bank accounts digitally via Kotak 811 platform, after a ban was imposed in April 2024. Nomura has a 'neutral' rating, with a revised price target of ₹2,150. "Kotak's results in Q1FY26 were soft, led by asset quality deterioration and a sharper decline in NIMs. Slippages and credit costs were elevated at 1.7% and 1.2%, respectively," said brokerage Nomura's analysts.
Hans India
04-06-2025
- Business
- Hans India
Start Your SIP Instantly: Invest Seamlessly Using the Kotak811 App
Investing shouldn't feel complicated. Yet, many people need to switch between different apps just to manage their investments better, making financial planning more time-consuming than it should be. The Kotak811 Mobile Banking App eliminates this hassle by integrating SIP investments within a seamless, digital platform. Now, users can start, track and manage SIPs effortlessly—without the need for multiple apps or lengthy processes. Investing Made Simple with Kotak811 Systematic Investment Plans (SIPs) remain one of the most effective ways to build wealth consistently. However, the hassle of managing separate investment accounts can make the process cumbersome. Kotak811 removes this complexity with a fully digital, instant SIP setup, allowing users to start investing in just a few minutes. Why Choose Kotak811 for SIPs? Instant Setup – No Delays, No Paperwork SIP investments can be activated instantly through a completely digital process. Users can browse mutual funds, choose an investment amount and start investing instantly. Automated Contributions – Stay Invested Without Effort SIPs are directly linked to the Kotak811 Savings Account, ensuring automatic monthly deductions. This removes the need for manual transfers, making investing effortless. Diverse Fund Selection – Tailored to Every Investor The Kotak811 App provides access to a wide range of mutual funds, including equity, debt and hybrid options. Investors can choose funds based on their financial goals, risk appetite and investment timeline. Live Portfolio Tracking – Real-Time Insights Users can monitor SIP performance, track returns and adjust investments anytime—all within the Kotak811 App. This ensures full transparency and better financial decision-making. Secure Transactions – A Safe Investment Experience Every SIP investment through the Kotak811 App is protected with multi-layer authentication, encrypted transactions and OTP verification. This ensures a secure and seamless investing experience. All-in-One Banking and Investment Platform With Kotak811 Mobile Banking App, there's no need for multiple apps to manage finances. A quick setup, automated contributions and real-time insights make investing easier than ever. Users can save, transact and invest—all from a single platform. Download the Kotak811 Mobile Banking App today and start investing in SIPs instantly. Disclaimer: Kotak Mahindra Bank Ltd. ('Bank') makes no warranty regarding the completeness or accuracy of the information provided herein. The features and benefits of the Kotak811 Mobile Banking App, including Mutual Fund investment services, are subject to change at the Bank's discretion. Mutual Fund investments are subject to market risks; please read all scheme-related documents carefully before investing. The Bank shall not be liable for any loss or damage arising from reliance on or use of this information.
