S&P Global Ratings cautioned that the recent regulatory action by the RBI on Kotak Mahindra Bank, barring the issuance of new credit cards and online customer onboarding, could hinder the bank’s credit growth and profitability. With credit cards being a significant growth segment for the bank, this restriction might compel Kotak Mahindra Bank to rely more on physical branch expansion, leading to higher operating costs. However, S&P affirmed that this action would not significantly affect the bank’s ratings, as credit cards constitute a small portion of its total loans.
RBI’s Action on Kotak Mahindra Bank May Impact Credit Growth, Profitability: S&P
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