Kotak Mahindra Bank Expands IT Team, Plans to Recruit 500 Engineers

In an effort to increase its technological prowess and, by extension, its long-term competitiveness, the Indian lender Kotak Mahindra Bank Ltd., which is owned by billionaire Uday Kotak, is reportedly hiring 500 engineers. In his pursuit of establishing a technology company with a banking licence, Chief Technology Officer Bhavnish Lathia is actively courting candidates from prominent IT organisations and competing banks.

More than 2,000 individuals make up the company's IT team. According to him, these IT specialists come from a variety of places, including Alphabet and Apple, as well as Wall Street giants like JPMorgan Chase and Goldman Sachs. Lathia stated that the brand perceives a distinct opportunity in integrating individuals with extensive subject knowledge with those from deep tech businesses. "To me, it’s like ginger and cardamom going into chai," Lathia says.

Indian Banks Currently Going Through Tech Transformation

Amid consistent increases in deposits and robust loan activity, India’s banking sector is increasing expenditures in technology. In many banks, the use of AI is still in its early phases. For both customer support and detecting fraud, larger institutions are utilising AI more frequently.

As more and more multinational corporations set up shop in India, competition for talent is heating up, leading to higher wages and higher turnover rates. When it comes to technology, Kotak is in direct competition with other regional lenders like Macquarie Group Ltd. of Australia and DBS Group Holdings Ltd. of Singapore. According to Lathia, the regulatory technology embargo that was imposed in 2024 as a result of Kotak's deficiencies was lifted last year, which enabled the company to accelerate its technological drive.

Why Kotak is Focusing on Technology?

Kotak is boosting its investment in technology while opening fewer physical branches compared to some of its competitors. The percentage of operational expenditures devoted to technology has increased from 10% a few years ago to 13% and is still on the rise, according to Lathia. With the use of automation and scalability, the bank plans to maintain consistent expenses regardless of the increase in business volumes.

This will allow them to reinvest in new platforms and products. That endeavour is increasingly reliant on artificial intelligence. To keep tabs on transactions, identify suspicious activity, and fortify cybersecurity, Kotak already use machine learning and AI. Lathia predicted that within eight months, artificial intelligence would influence nearly all of Kotak's operations. He went on to say that about 35,000 workers use AI tools on a regular basis, and that hundreds of developers are already utilising AI agents to write code.