Kotak Mahindra Bank Ltd. Chief Ashok Vaswani reassured existing customers of uninterrupted operations and access to all banking services through a letter posted on social media platform X (formerly Twitter), which has since been deleted. This comes a day after the Reserve Bank of India imposed curbs that led to a rout in its stock and a slash in target price by brokerages.
"I wish to emphasise that our operations continue to be uninterrupted for all existing customers on all our channels. You continue to have access to all our banking services, including branches, bank accounts, credit/debit cards, ATMs, and mobile and internet banking facilities," Vaswani, managing director and chief executive officer, wrote in the open letter.
"Rest assured, we are actively working to address the concerns raised and are in constant communication with the regulator to resolve any issues promptly," he said.
The social media post on the official account of the bank featured an image of the letter and was later deleted.
Kotak Mahindra Bank MD and CEO Ashok Vaswani's letter to customers.
Kotak Mahindra Bank MD and CEO Ashok Vaswani's letter to customers.
Shares of Kotak Mahindra Bank hit a 10% lower circuit on Thursday after the RBI crackdown, which directed India's fourth-largest private lender by market capitalisation to cease and desist the issue of fresh credit cards and the onboarding of new customers through its online and mobile banking channels with immediate effect.
NDTV Profit reported that the primary issue was related to the scalability of the core banking system of the lender, along with high-volume UPI transactions contributing to the issue.
The "explosive" growth of the lender through digital channels has increased the need for a completely different level of technology infrastructure, Vaswani wrote to employees via email on Wednesday.
"However, the explosive growth in business through our digital channels has necessitated a completely different level of technology infrastructure, which we have been building. Rest assured, we will resolve all the issues raised by the RBI in short order," he wrote in the email reviewed by NDTV Profit.
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