Kotak Mahindra Bank PESTLE Analysis

Published by MBA Skool Team, Last Updated: March 07, 2021

PESTLE Analysis of Kotak Mahindra Bank analyses the brand on its business tactics. Kotak Mahindra Bank PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Kotak Mahindra Bank, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Kotak Mahindra Bank PESTLE Analysis:

Political Factors:

The political factors in the Kotak Mahindra Bank PESTLE Analysis can be explained as follows:

Kotak Mahindra Bank is an Indian private bank which operates in India. To establish and run the financial services in India needs a lot of political support and government support. So, it is important for the company to maintain the political connections with the both central and state government. It also should observe the policies made by the both governments. Due to pandemic, the government has kept the restrictions for the economic activity which has affected the income of the bank. The bank should also observe the both fiscal and monetary policies.


Image: Wikimedia


Economic Factors:

Below are the economic factors in the PESTLE Analysis of Kotak Mahindra Bank:

Indian banks like Kotak Mahindra Bank are driven by several financial policies.

Due to sluggish growth from the past few years in India, the income of the people has decreased a lot. At the same rate due to inflation, the operation cost has increased. At this time, the bank has affected a lot due to pandemic. It affects the economy of the nation which has decreased to the all time low. But due to reduce in the intensity and the vaccination process, the GDP growth rate has estimated to grow in the following financial year. The fiscal policies taken by the government also boosts the income of the people. The bank should also observe the trends of the disposable income of the consumers.


Social Factors:

Following are the social factors impacting Kotak Mahindra Bank PESTLE Analysis:

Due to change in demographics, the Indian people are interested to be financial literates. Due to vast knowledge with the help of internet and the quest for earning and wealth managing they are keener to the financial services. This trend will aid for the growth of Kotak Mahindra Bank. The development in the education and entrepreneurial learning makes many entrepreneurs. This will be a great aid to invest in the better idea. Due to pandemic, people mindset has changed a lot on the share market. People are doing shopping more on online platforms and want to avail more discounts.


Technological Factors:

The technological factors in the PESTLE Analysis of Kotak Mahindra Bank are mentioned below:

A bank like Kotak Mahindra must ensure sound technological platforms for secure online banking. This is the world of digital platforms. The people are not interested to wait for days to open the account and wait for hours to avail the services of the bank. This makes the bank to embrace the technology to provide the services to the customers fastly and smoothly. The bank should also aid the block chain technology to safeguard the information. It should also avail the services of the AI in its services to provide more efficient services to the customers.

it should also look at to improve its digital banking services.


Legal Factors:

Following are the legal factors in the Kotak Mahindra Bank PESTLE Analysis:

Kotak Mahindra Bank, like all financial institutions, has many rules and regulations to follow. To implement the financial services in this country it should follow the guidelines provided by the RBI. The company should also follow the guidelines to avail the services of the stock markets. If there are any discrepancies, the bank should cost high. The bank should also have strong legal acts and rules to make sure the dealings with the customers should be appropriate. The bank should also follow the rules of the state government to run its operations.


Environmental Factors:

In the Kotak Mahindra Bank PESTLE Analysis, the environmental elements affecting its business are as below:

The bank use lots of energy to run its business operations. the usage of electricity increases the carbon foot print which eventually increases the climate change. Kotak Mahindra Bank provides loans to the corporates and other small businesses which may affect by the natural disasters.

These will indirectly affect the bank. The bank should also observe the monsoons in India which helps to the growth and downfall of the Indian economy. The bank should also encourage the start-ups which aids the sustainable development and this business will make the bank to gain profits.

To conclude, the above Kotak Mahindra Bank PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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