Kotak Mahindra Bank launches new ad campaign

Kotak Mahindra Bank launches new ad campaign

Mangalore Today News Network

Mangalore, Oct. 5, 2012: Kotak Mahindra Bank has launched a new advertisement campaign which highlights the bank’s attractive customer value proposition for its Savings Bank (SB) accounts manifested in higher than normal return on account balance, host of attractive value added services, and adaptation of technologies and processes that makes banking convenient and seamless.

The advertisement features ‘Subbu’, a role played by versatile Bollywood actor Vinay Pathak, an easy to relate, next door character, who epitomizes smart money management, which is at the heart of Kotak Mahindra Bank’s customer value proposition. In the advertisement, ‘Subbu’ in his inimitable style brings to life the premise that ‘a rupee saved could earn up to 6%+’, denoting profitability and convenience for the customer who chooses to open a SB account with Kotak Mahindra Bank.

 

 

The advertisement draws attention to how banking with Kotak Mahindra Bank ‘increases’ customers’ Savings Bank kitty due to higher than normal interest rates offered on SB balances (6% for SB balances above Rs 1 lakh and 5.5% for SB balances up to Rs 1 lakh) and the many smart, value added options that result in substantial additional savings for customers such as cash back on purchases done using Silk Debit Card, home banking, doorstep account opening and just in time payment.

After the deregulation of savings bank interest rate by the Reserve Bank of India in October 2011, Kotak Mahindra Bank was among the first banks to increase rate of interest on Savings Bank account to a record high of 6% for SB balances above Rs 1 lakh and 5.5% for SB balances up to Rs 1 lakh which was earlier communicated through a high decibel multimedia advertisement campaign which too featured Vinay Pathak as ‘Subbu’, the smart money manager, in the last quarter of 2011 and early 2012.

The 6% p.a. interest offering on SB accounts has had a very positive impact as it has enabled customers to match this return with the post-tax yields of term deposits of short to medium tenure. Additionally, interest earned on savings account up to Rs. 10,000/- is now tax free. As a result, a whole lot of customers now have a hassle free option to grow their monies without having to lock it in term deposits. SB deposits of Kotak Mahindra Bank increased from Rs. 3,307 crore as on June 30, 2011 to Rs. 5,540 crore as on June 30, 2012, a year-on-year increase of a whopping 68%.

KVS Manian, president and head of Kotak Mahindra Bank explains, “Household savings is at its lowest in 22 years on account of slow income growth and rising inflation. This combined with the tepid sentiment arising from global economic uncertainty has resulted customers seeking savings options that are not only secure and guaranteed, but, also offer superior returns to beat the sluggish trend. ‘6%+’ proposition builds on this key customer insight which in turn was made possible by Reserve Bank’s farsighted move to deregulate Savings Banks interest rate”  

Puneet Kapoor, executive vice president of Kotak Mahindra Bank said, “Bank deposits have for long been the single biggest avenue of household savings in India, and, any upward movement definitely cheers the average savings bank customer as it puts more money in his pocket. Guaranteed return of 6% p.a. interest on savings bank balances of over Rs. 1 lakh and indirect return through savings accrued through smart usage of the various value added services which could take up the net gain several notches above 6% and affords customers enormous flexibility to manage their monies smartly.”