Kotak Mahindra Bank to add 500 engineers amid tech push
Kotak Mahindra Bank is preparing to recruit up to 500 engineers to strengthen technology infrastructure, reported Bloomberg.
Chief technology officer Bhavnish Lathia said the bank is looking to hire from large technology firms and other banks to build what he described as a “technology company with a banking licence.”
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The current tech workforce, now exceeding 2,000 employees, includes professionals who previously worked at companies such as Alphabet, Apple, Goldman Sachs Group, and JPMorgan Chase.
“Where we see a unique opportunity is in combining talent from deep tech companies with talent that brings deep domain expertise,” Lathia said.
The bank was under a regulatory technology embargo in 2024 due to identified shortcomings, but the restriction was lifted last year.
During this period, Kotak Mahindra Bank overhauled core banking systems and shifted much of its software development in-house, reducing its reliance on external vendors and giving in-house engineers greater oversight of critical systems.
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By GlobalDataAccording to Lathia, the bank has recorded more than a year without any unplanned outages in its core banking system, despite handling yearly transaction volume growth of 60% to 70%.
Transaction processing time for customers using Kotak’s digital app has also dropped from several seconds to under 500 milliseconds.
Of the bank’s current engineering staff, around 1,800 have backgrounds in major technology and global finance firms.
Another 300 to 500 engineers are expected to join in the next financial year starting April 1.
Lathia took on the CTO role last year, following a similar recruitment drive led by his predecessor Milind Nagnur.
Kotak Mahindra Bank is investing less in physical branch expansion compared to some competitors and has increased its technology spending.
Technology now makes up about 13% of operating expenses, up from around 10% two years ago. The bank is aiming for cost stability as business volumes grow, with automation and scaling allowing more resources for further reinvestment in technological platforms.
Lathia said that almost all operations will feature AI integration within eight months. He indicated that hundreds of engineers are already using AI tools for code generation, and around 35,000 employees work with AI tools daily.
Last month, Bloomberg reported that Deutsche Bank is close to selling its retail and wealth management operations in India, with Kotak Mahindra Bank among those submitting binding bids for the portfolio.
Last year, Kotak Mahindra Bank acquired a personal loan portfolio from Standard Chartered Bank valued at Rs33.3bn (then $385m).
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