Kotak Mahindra Bank will now explore the rural markets

HYDERABAD, India - Dec. 18, 2013 - PRLog -- Kotak Mahindra Bank has always made its impact on the urban market with its operations ranging from big cities to metros. The bank has now decided to go rural with its strategy to focus on the less touched rural markets. Thus move made by Kotak Mahindra Bank will make it stand along other nationalised and major private banks.
The bank has made big plans to open about half of the branches in rural India and would also make his presence felt in semi rural areas. The banks need to open about quarter of their new branches in the regions having overall population less than 10,000. The cost for establishing these branches would be quite less compared to the expense occurring while establishing the branches in city. Kotak Mahindra Bank (http://saverable.com/banks) has therefore decided to go above the mandatory limit and open about half of the new branches in rural area.
This strategic development made by the bank would help it reach the actual India and would be able to serve the less privileged section of the society. The rural penetration plan will further ensure that bank generates more savings accounts ratio in the coming future. The associated cost is also negligible as the new branch establishment cost in rural area is just Rs. 2 lakh while that for the major towns or cities would be very high.
The bank currently has 503 branches and around 39% of these branches are in rural India. This comes to the figure of 195. The bank will increase the branch network to 600 by March 2014. The 45 branches out of these newly opened 97 branches would be opened in rural sector as a part of this rural penetration program. This rural centric move made by the bank will surely bring in more players to this fast developing rural market.

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