R ARIVANANTHAM
CHENNAI, JULY 25
Kotak Mahindra Bank plays significant role in saving energy cost of SMEs in Tamil Nadu and aims to double its SME portfolio in the next two to three years, said Shekhar Bhandari, President-SME, Kotak Mahindra Bank here on Wednesday.
- The SME portfolio of the bank is growing at an annual rate of 25-30 per cent per annum and aims to double to Rs 2 trillion by the end of FY 2027
- ‘Kotak IIT Madras Save Energy Mission’ has so far conducted detailed energy audits for 161 SMEs across 23 different manufacturing sectors resulting in recommendations of annual energy cost savings of Rs. 123 crores
- Kotak Mahindra Bank has already been implementing various initiatives such as using Data Anaytics and a digital initiative ‘Kotak For Your Needs’ a one-stop digital platform that takes care of all business banking needs of corporate customers
Addressing the media, Bhandari said the SME portfolio of the bank is growing at an annual rate of 25-30 per cent per annum and aims to double to Rs 2 trillion by the end of FY 2027.
He attributes the aggressing branch expansion plans will contribute to the growth of its SME portfolio.
He also emphasized that the Bank is set to expand its SME business in Tamil Nadu, recognizing the southern region as a growing opportunity. SME banking at Kotak is about building the entire ecosystem and partnering in their growth journey, rather than just about funding. To ensure this, the bank has collaborated with IIT Madras for “Kotak IIT Madras Save Energy Mission”, with a primary objective of enabling energy efficiency in the SME segment by providing various types of energy assessment services resulting in the decarbonisation of the manufacturing sector via energy conservation and making SMEs efficient, cost effective and sustainable.
The program has so far conducted detailed energy audits for 161 SMEs across 23 different manufacturing sectors resulting in recommendations of annual energy cost savings of Rs. 123 crores. 19% of the SMEs belong to Tamil Nadu from the Textile and Engineering sectors showcasing Kotak’s Commitment to supporting SMEs in the region by guiding them towards adopting environment-friendly & sustainable practices.
Replying to a query, Mr Bhandari said that this initiative will be expanded to over 250 to 300 SMEs soon.
Bhandari said, “SMEs are integral to our growth strategy, and Tamil Nadu along with Southern region is central to our vision for SME growth. We are happy to support sustainability and energy efficiency amongst SMEs in the region resulting in cost savings. SME banking at Kotak is about offering comprehensive sustainable solutions across trade, collections, working capital management, estate planning, wealth and salary, thereby building the entire ecosystem which helps foster their development.”
For Kotak Mahindra Bank, Tamil Nadu is a vital market with significant growth potential and the bank has identified key locations such as Chennai, Coimbatore, Tirupur, Selam, and Erode leveraging local insights and opportunities for growth. Currently, the bank has 114 branches across 47 locations which it plans further increase in near future.
Bandhari hailed the budget announcement on doubling the Mudra loan limit from Rs 10 lakh to Rs 20 lakh in this budget and said it will boost the growth of SMEs sector.
Similarly halving the turnover threshold for mandatory onboarding the TREDS platform to Rs 250 crore from Rs 500 crore will create a positive impact on SMEs growth in the country, he added.
Answering a query on Finance Minister Nirmala Sitharaman’s instruction to the public sector banks to develop new credit assessment models, moving beyond the traditional criteria of assets or turnover, Bhandari said, Kotak Mahindra Bank has already been implementing various initiatives such as using Data Anaytics and a digital initiative ‘Kotak For Your Needs’ a one-stop digital platform that takes care of all business banking needs of corporate customers such as account services, trade, collections, account services, loans and payments through all channels such as mobile, API and web on 24×7 basis.
