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After RBI Ban Kotak Mahindra Bank plans to hire 400 engineers to upgrade its IT system


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Kotak Mahindra Bank is reportedly planning to hire around 400 engineers this year in order to upgrade its technology systems. This decision comes after the bank faced criticism from the Reserve Bank of India (RBI) for lapses in its IT infrastructure.

RBI’s Order and Impact on Kotak Mahindra Bank

The RBI recently directed Kotak Mahindra Bank to stop adding clients digitally and issuing credit cards due to gaps in its IT infrastructure. This order has had an impact on the bank’s franchise and reputation, although the financial impact is expected to be minimal.

Kotak Mahindra Bank’s Response and Commitment

Ashok Vaswani, the CEO of Kotak Mahindra Bank, stated that the bank is committed to coming back strongly and that addressing IT-related issues is their number one priority. The bank plans to double its efforts, resources, and investment in order to resolve these issues.

Steps Taken by Kotak Mahindra Bank

Kotak Mahindra Bank is already working with the RBI to appoint an external auditor for its IT systems, and this process is expected to be completed soon. The bank is also focusing on accelerating the execution of its comprehensive plan for core banking resilience and strengthening its digital payment security controls.

Recruitment of Engineers and Collaboration with External Auditors

Over the past two years, Kotak Mahindra Bank has already hired more than 500 engineers, many of whom have come from companies like Google and Amazon.com. The bank’s chief technology officer, Milind Nagnur, confirmed this and mentioned that the bank is now planning to hire an additional 400 engineers.

Financial Performance of Kotak Mahindra Bank

Despite the challenges faced by the bank, Kotak Mahindra Bank reported a 26% increase in fourth-quarter net profit, driven by higher core lending income and healthy loan growth. The bank’s standalone net profit rose to 41.33 billion rupees ($495.71 million) in the January-March quarter, compared to 34.96 billion rupees in the same period last year.

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