Signalling a sharper push toward technology-led banking, Kotak Mahindra Bank is preparing to significantly expand its engineering workforce as it strengthens its digital capabilities.
Kotak Mahindra Bank plans to hire up to 500 engineers as the lender backed by billionaire Uday Kotak steps up investments in technology to boost long-term competitiveness. Chief Technology Officer Bhavnish Lathia said the bank aims to build a “technology company with a banking license.”
Lathia said the bank is targeting talent from large technology firms as well as rival banks. Kotak’s technology team already numbers over 2,000 professionals, many of whom come from companies such as Alphabet and Apple, along with global financial institutions including 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. “To me, it’s like ginger and cardamom going into chai.”
India’s banking sector is increasing technology spending amid steady deposit growth and strong credit demand. While artificial intelligence adoption is still at an early stage across many banks, larger lenders are using it more for customer service and fraud detection. Competition for skilled talent is intensifying as global firms hire in India, driving up salaries and attrition. Kotak’s strategy places it in direct competition with tech-focused lenders such as DBS Group Holdings and Macquarie Group.
Lathia said a regulatory technology embargo imposed in 2024 was lifted last year, allowing the bank to accelerate its tech transformation. During the pause, Kotak revamped its core banking systems and brought much of its software development in-house. Since then, the bank has gone over 1 year without an unplanned core banking outage, despite handling a 60% to 70% year-on-year rise in transaction volumes. Transaction latency on its consumer app has fallen to under 500 milliseconds from several seconds earlier.
Nearly 1,800 engineers already come from the targeted tech and global finance firms. Kotak plans to hire another 300 to 500 engineers in the next financial year starting April 1. Tech spending now accounts for about 13% of operating expenses, up from around 10% earlier, and continues to rise. Artificial intelligence is central to this push. “In about 8 months, almost everything we do will be AI-infused,” Lathia said, noting that close to 35,000 employees already use AI tools in daily work.
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