People often get confused between savings and investment; saving is done to save money for a specific purpose and returns are low with almost no risk; however, an investment is like building your wealth and it can give high returns too but at the same time, risk can also be high.
What if we tell you that if you had invested Rs. 1 lakh in Kotak Group in 1985, your investment today would have grown to Rs. 1,400 crore? Don’t believe us? Read what MD and Executive Vice Chairman of Kotak Mahindra Bank has to say,
“An investment of Rs. 1,00,000 made in Kotak Group in November 1985, is worth Rs. 1,400 crore today – a compounded growth rate of 40 per cent over the past 32 years.”
This was said by Uday Kotak during the launch event of “811” savings account scheme of his bank.
Undoubtedly, Kotak Mahindra Group is one of the biggest financial firms of India at present. It was started as Kotak Capital Management Finance Limited in 1985 and the promoters of the company were Sidney A. A. Pinto, Uday Kotak and Kotak & Company. In 1986, industrialists Anand Mahindra and Harsh Mahindra took stake in Kotak & Company and the firm was renamed as Kotak Mahindra Finance Limited.
Just recently, Anand Mahindra tweeted that the decision of taking stake in the Kotak Group was one of his best decisions. From 2003, Kotak Mahindra Finance started operating as a commercial bank.
Anand Mahindra tweeted, “1985. Young Uday Kotak enters my office&offers financing.He’s so smart,I ask if I can invest in him.My Best decision”
1985. Young Uday Kotak enters my office&offers financing.He's so smart,I ask if I can invest in him.My Best decision https://t.co/cCfntHkiih
— anand mahindra (@anandmahindra) March 25, 2017
Mr. Kotak replied, “thank you Anand. You are my friend, mentor, guide in this journey.”
. @anandmahindra thank you Anand. You are my friend, mentor, guide in this journey.
— Uday Kotak (@udaykotak) March 25, 2017
ING Vysya Bank merged with Kotak Mahindra Bank from April 1, 2015, and if we talk about the branches of Kotak Mahindra Bank, the count was 1350 till Dec 31, 2016. Last month only, the board has taken the decision to raise more than Rs. 5,300 crore by reducing the promoters holding by 3.3% and it will be used for a number of opportunities which also include consolidation.
The “811” digital savings account scheme has been launched by Kotak Mahindra Bank as a part of its campaign to double its customer count within 18 months. As per Mr. Kotak, the name of the scheme is kept “811” as it has got inspiration from Nov 8, 2016, “the day that changed India”. It was the day when PM Modi announced the demonetization of high currency notes of Rs. 500 and Rs. 1000.
The 811 scheme will provide the customer with a “completely digital, paperless account opening experience”, and the bank further claims that opening of this “zero balance, zero charge” account will take only 5 minutes and that too, through the bank app. The bank is also offering interest rate upto 6% but that will depend upon the balance that the customer maintains.
How great it will be if we also make an investment like this!