Kotak Mahindra Bank, a private sector lender, has announced the incorporation of Kotak Karma Foundation, a company that will be registered under Section 8 of the Companies Act, 2013. The wholly-owned subsidiary of the bank is aimed at setting up a Centre of Excellence (CoE) to further the bank’s Corporate Social Responsibility (CSR) initiatives. The incorporation process is expected to be finished before the end of the second quarter of 2023-24, according to Kotak Mahindra Bank’s regulatory filing.
On June 14, 2023, Kotak Mahindra Bank subscribed to the Memorandum and Articles of Association of Kotak Karma Foundation, which has received relevant approval from the Reserve Bank of India (RBI). No approvals of any authorities shall be required for acquisition or subscription or to hold shareholding in the Kotak Karma Foundation other than for incorporation.
The bank has also shown its support by providing Rs 1 crore towards subscription of 10 lakh equity shares of the face value of Rs 10 each. Furthermore, the incorporation of Kotak Karma Foundation’s CoE will help the bank further its CSR efforts through the creation of a dedicated body that focuses on social initiatives.
This initiative will help to support and promote financial literacy, conduct research, and implement sustainable development initiatives, with the aim of providing financial inclusion and promoting education and skill development. The Kotak Karma Foundation is a significant plan of Kotak Mahindra Bank’s CSR programme, emphasising its commitment to responsible business and societal development.
