MUMBAI: Kotak Mahindra Bank has garnered about Rs 5,400 crore of fresh deposits courtesy of the RBI’s move to withdraw the Rs 2,000 denomination notes, a top official said on Thursday.
The majority of the customers depositing the money are businesses, and the money is coming into current accounts held by them, the private sector lender’s president for retail liabilities and branch banking Virat Diwanji told reporters. “We have got more than our fair share of our deposit share. We have 2.2 pc of deposits (in the system). If I do the math based on what RBI has declared, perhaps the share that I have got is higher than my 2.5 pc. It is almost...close to 3.5-4 pc of the total (declared by the Reserve Bank),” Diwanji said. On June 8, Reserve Bank Governor Shaktikanta Das had said that the system has seen Rs 1.80 lakh crore of Rs 2,000 notes being returned since the central bank announced the move on May 19, with 85 per cent of it being deposits into banks and the rest being exchanged.
Diwanji said the bank’s experience of the split between deposits and exchange is similar to the system’s experience and added that the bank has received about Rs 5,400 crore as deposits. He, however, was quick to add that the jump in deposits is a temporary phenomenon as the business people will be eventually deploying the same money for other purposes like paying vendors.