TABLE OF CONTENTS

Chapters Page No.-

1. COMPANY PROFILE 1

2. BUSINESS PROFILE 10

3. Executive Summary 13
4. Introduction 14

5. HISTORY OF KOTAK MAHINDRA BANK 19

6. ORGANIZATIONAL STURCTURE 21

7. Business Processes 33

8. KOTAK PRODUCT LINE 37

9. Products And Services 49

10.Swot Analysis Of Kotak Mahindra 67
11.Marketing Strategies Of Kotak 69
12.Competitor Performance Of The Organization 78
13.Research Obective 88
14.Conclusion And Recommendation 89
15.Bibliography 90

1
 COMPANY PROFILE

KOTAK MAHINDRA GROUP

KOTAK MAHINDRA GROUP is one of India's leading financial

institutions, offering complete financial solutions that encompass every

sphere of life. From commercial banking, to stock broking, to mutual

funds, to life insurance, to investment banking, the group caters to the

financial needs of individuals and corporate.

The group has a net worth of around Rs.2900 Crores and employs over

8800 employees in its various businesses. With a presence in 74 cities in

India and offices in New York, London, Dubai and Mauritius, it provides

services to a customer base of over 500000.

Kotak Mahindra has international partnerships with Goldman Sachs (one

of the world's largest investment banks and brokerage firms), Ford Credit

(one of the world's largest dedicated automobile financiers) and Old

Mutual (a large insurance, banking and asset management conglomerate).

2
Kotak Mahindra Bank works with a vision to provide customer a helpful

hand, in particular with Kotak Mahindra Bank Ltd is one of the fastest

growing bank and among the most admired financial institutions in India.

The Bank offers transaction banking, operates lending verticals, manages

IPOs and provides working capital loans. They have one of the largest

and most respected Wealth Management teams in India, providing the

widest range of solutions to high net worth individuals, entrepreneurs,

business families and employed professionals. The Bank has over 245

branches, a customer base of over 8 lakh and has spread all over India.

The Bank offers complete financial solutions for infinite needs of all

individual & non-individual customers depending on the customer's need

- delivered through a state of the art technology platform. They also offer

investment products like Mutual Funds, Life Insurance, retailing of gold

coins and bars etc. Apart from Phone banking and Internet banking, they

offer convenient banking facility through Mobile banking, SMS services,

Netcard, Home banking and BillPay facility among others. The

Depository services offered by the Bank allows the customers to hold

equity shares, government securities, bonds and other securities in

electronic or Demat forms. Their Salary 2 Wealth offering provides

comprehensive administrative solutions for Corporates with features such

as easy and automated web based salary upload process thereby

3
eliminating the paper work involved in the process, a dedicated

relationship manager to service the corporate account, customized

promotions and tie - ups and many such unique features. The Bank offers

comprehensive business solutions for the business community that

includes the Current Account, Trade Services, Cash Management Service

and Credit Facilities. Their Wholesale banking products offer business

banking solutions for long-term investments and working capital needs,

advice on mergers and acquisitions and equipment financing. The Bank

addresses the entire spectrum of financial needs of Non-Resident Indians.

Their tie-up with the Overseas Indian Facilitation Centre (OIFC) as a

strategic partner gives them a platform to share their comprehensive

range of banking & investment products and services for Non Resident

Indians (NRIs) and Persons of Indian Origin (PIOs). The bank has

overseas subsidiaries with offices in Mauritius, London, Dubai,

Singapore, New York & San Francisco. The overseas subsidiaries are

mainly engaged in investment advisory and investment management of

funds, Equity & Debt Trading, management of GDR/ FCCB issuances,

broker & broker dealer activities and investments . Kotak Mahindra

Bank Ltd was incorporated in the year 1985 with the name Kotak Capital

Management Finance Ltd. In April 8, 1986, the company's name was

changed Kotak Mahindra Finance Ltd. They started bill discounting

4
activity. In the year 1987, they entered into lease and hire purchase

market. In the year 1990, they started car finance division and during next

year, they started investment banking division. Also they took over

FICOM, one of India's largest financial retail marketing networks. In the

year 1994, the company formed Kotak Mahindra International in

Mauritius and opened an office in Dubai. They formed Kotak Mahindra

(UK) formed with office in London. In the year 1996, the car finance

business was hived off into a separate company, namely Kotak Mahindra

Primus Ltd and Ford Credit took a 40% stake in Kotak Mahindra Primus.

In the year1998, they formed Kotak Mahindra Inc with office in New

York. In the year 2001, Kotak Securities Ltd became a subsidiary

company. In February 2003, the company was given the license to carry

on banking business by the Reserve Bank of India (RBI). This approval

created banking history since Kotak Mahindra Finance Ltd is the first

non-banking finance company in India to convert themselves into a bank

as Kotak Mahindra Bank Ltd. In March 2003, they commenced banking

operations. The Bank started their operations in New Delhi by

inaugurating a branch. They entered into ATM sharing agreement with

UTI Bank (now known as Axis Bank), in which the Bank customer's were

free to access around 800 ATM's. They unveiled several home finance

products options that include Home Loan, Home Equity Loan, Home
5
Loan Transfer and Home Improvement Loans. Also, they launched online

remittance services called FUNDS to HOME for Non-resident Indians. In

January 2005, the Bank opened 29th retail-banking branch at Mehsana in

Gujarat. In February 2005, they launched Rajajinagar extension counter

in Bangalore and launched free Mobile Banking facility. Also, they

launched their branch at Chennai, Tamilnadu. In February 23, 2005, they

opened their retail-banking branch in the business capital of Madhya

Pradesh. In March 2005, they opened their eighth retail-banking branch at

Napean Sea Road in Mumbai. In May 2005, the Bank opened new retail-

banking branch at Parry's Corner in Chennai. In June 2005, they opened

two retail-banking branches in Delhi at Safdarjung Enclave and Punjabi

Bagh. In October 4, 2005, the Bank acquired 40% stake in Kotak

Mahindra Primus Ltd (KMP) held by Ford Credit International (FCI)

thereby giving the Bank and their subsidiary, complete ownership of

KMP. Simultaneously, they also sold their stake in Ford Credit Kotak

Mahindra Ltd (FCKM) to FCI. In September 2006, the Bank acquired

51% of the paid up Share capital of Kotak Mahindra Securities Ltd

(KMSL) by way of preferential allotment of shares by KMSL to the

Bank. In March 2007, the Bank entered into a subscription agreement

with International Finance Corporation, whereby the Bank will issue

Upper Tier II Subordinated Bonds by way of Debentures of the value of

6
USD 45 million with the final maturity of over 15 years. During the year

2007-08, the Bank increased 73 new full fledged branches & 179 new

ATMs, taking the network size to 178 branches and 314 ATMs. They

added n new products & services like Gold debit card, smart fee (a fee

solution for Educational Institutions), a GPRS based mobile banking, Bill

presentment and payment facility, online term deposits etc to meet the

needs of the customers. In September 2007, Kotak Mahindra Icn set up a

branch in San Francisco. During the year 2008-09, the Bank added 39

branches and 74 ATMs taking the total network size to 217 branches and

387 ATMs (including 175 off site ATMs). They introduced several new

features like, Online password, two factor authentication, improved

features for security of fund transfers, e-tax payment facility, auto

payment of bills, PIN based IVR. During the year 2009-10, the Bank 32

branches, 77 off site and 28 onsite ATMS taking the total number of

branches to 249 Nos, 252 Nos off-site ATMs and 240 Nos on-site ATMs.

They had a debit card base of 829,876. They opened a representative

office in Dubai. Also, they entered Ahmedabad Commodity Exchange as

anchor investor. In June 2010, the Bank entered into an agreement with

Sumitomo Mitsui Banking Corporation, Japan for a preferential issue of

1.64 crore shares at Rs 833 per share which amounts to approximately

4.5% stake on a post-issue basis for Rs 1,366 crore. During the year
7
2010-11, the Bank added 72 branches and 246 ATMs and ended the year

with 321 Branches and 710 ATMs, and thereby increasing their presence

to 183 locations. They also added over half a million new customers this

year across core banking products of savings and checking account, term

deposits, overdrafts and non resident accounts. During the year, the

Bank's Treasury started Correspondent Banking Division to build and

leverage on relationships with offshore banks for improving quality and

international reach for their customers. Also, the Bank entered into a

strategic arrangement with PVR Cinemas, one of the elite name in

entertainment industry, to distribute credit card products aimed at

upmarket customers. In August 2011, the Bank entered into business

cooperation arrangement with CIMB Group Sdn Bhd, Malaysia (CIMB).

In October 2011, Kotak Mahindra Capital Company Ltd, a subsidiary of

the Bank and Evercore Partners, global investment banking advisory firm

headquartered in New York, USA, entered into an exclusive strategic

partnership for cross-border M&A advisory services between India and.

the United States, the United Kingdom and Mexico. The Bank is looking

for possible acquisition targets in the banking, brokerage or asset

management space to expand their presence in India. The lender is also

looking to expand their presence by increasing their branch network to

500 by 2012 from the current 300. Aslo, the Bank plans to open their
8
maiden overseas branch in Singapore and has applied for a licence to the

Indian central bank

9
 BUSINESS PROFILE

Kotak Mahindra is one of India's leading banking and financial services

groups, offering a wide range of financial services that encompass every

sphere of life.

Kotak Mahindra Bank Ltd is a one stop shop for all banking needs.

The bank offers personal finance solutions of every kind from savings

accounts to credit cards, distribution of mutual funds to life insurance

products. Kotak Mahindra Bank offers transaction banking, operates

lending verticals, manages IPOs and provides working capital loans.

Kotak has one of the largest and most respected Wealth Management

teams in India, providing the widest range of solutions to high net worth

individuals, entrepreneurs, business families and employed professionals.

PARTNERS

Kotak Mahindra Bank: NRI Banking partners with NRI Matters to launch

NRI Power Podium

Kotak Mahindra Bank: NRI Banking partnered with NRI Matters to

launch a campaign NRI Power Podium to connect the Indian diaspora

with their Country where they got an opportunity to come to India &

also participate in the biggest NRI event Pravasi Bharatiya Diwas to

represent their concern & point of view. The first edition of NRI power

10
Podium in early 2011 was very well received by Indian diaspora across

60 countries.

Now, NRI Matters is proud to present its second edition of NRI Power

Podium, which begins from the 7th of December and ends on the 25th of

December. Power Podium 2011 offers a golden opportunity to aspiring

NRIs, to voice their issues on a worldwide platform and win an all-

expenses paid trip to Jaipur, where they shall be a part of Pravasi

Bharatiya Divas (PBD) 2012. This year, the participating global Indians

will present their views on Cohesive Growth benefiting NRIs and

Indians a theme that complements Pravasi Bharatiya Divas, Inclusive

Growth. 2 winners then get to fly to Jaipur and socialize with the likes of

Prime Minister Dr. Manmohan Singh, President Shrimati Pratibhasinh

Patil, Minister of Information & Broadcasting Shri Vayalar Ravi, Prime

Minister of Trinidad & Tobago Mrs. Kamla Persad-Bissessar and other

dignified personalities. The event is partnered by MakeMyTrip (Travel

partner), Hum Desi (Radio partner) and Click2remit (Remittance partner).

"Conversing one-on-one with Mr. Sam Pitroda helped me understand

better the issues concerning information for global Indians." -Karan

Ratti, one of the 3 champions of Power Podium 2010 at PBD, New Delhi.

A follow up to Power Podium 2010, this years edition aims at bettering

last years record-breaking effort. Power Podium 2010 was NRI Matters
11
first campaign which received a total of 13,215+ signups and over 600

applications all in a period of 1 month; this feat was archived in the

Limca Book of Records. Last years jury, comprising of Mr. P.K.

Aggarwal, CEO, TIE Global; Mr. KVS Manian, Group Head, Retail

banking, Kotak Mahindra Bank had an arduous time going through all the

applications and short-listing 25 final candidates. These 25 candidates

were further evaluated and finally, 3 of them were chosen as winners who

represented the Indian Diaspora at Pravasi Bharatiya Divas 2011, New

Delhi. It was more than an exhilarating experience to share a few words

with luminaries, such as Meera Nair, Shashi Tharoor, Sam Pitroda and

others.

Each citizen should feel that his or her voice is heard and have a sense of

participation in national development. This is the only way we know to

accommodate the enormous diversity of opinions and interests in our

country." -Dr. Manmohan Singh

.So this year, Power Podium awaits its 2 proud victors who shall

represent the Indian Diaspora at Birla Auditorium, Jaipur from January

7th to 9th, 2012

12
 EXECUTIVE SUMMARY

Kotak Mahindra Bank is an Indian private

sector banking headquartered inMumbai, Maharashtra, India. In February

2003, Reserve Bank of India (RBI) gave the licence to Kotak Mahindra

Finance Ltd., the group's flagship company, to carry on banking business.

[3]

It offers a wide range of banking products and financial services for

corporate and retail customers through a variety of delivery channels and

specialized subsidiaries in the areas of personal finance, investment

banking, life insurance, and wealth management.

Kotak Mahindra Bank has a network of 1,336 branches and 2,044 ATMs

spread across 702 locations in the country.[4] In 2016, it was the third

largest private bank in India by market capitalization.[5]

13
 INTRODUCTION

FUNCTION AREAS

The Banking System in India consists of :

Reserve Bank

Development Banks

Public Sector Bank.

Foreign Banks

Private Sector Banks

Cooperative Banks

Regional Rural Banks

The Reserve Bank of India

The Reserve Bank of India is the Central Bank of the Country and came

into being by the Reserve Bank of India Act 1934. It was nationalized in

1948.

The bank that issues and regulates the issue of currency in India

The banker to the Government of India and the State

governments. It manages the public debt. It has the obligation to

transact the banking business of the Central Government. It

14
 undertakes to accept money on behalf of the Government and make

payment on its behalf.

The bankers bank. Commercial banks maintain their current

account with the Reserve Bank of India.

The bank that manages the volume of credit created by the

commercial banks to ensure price stability.

The bank that manages the external value of the currency

(Indian rupee)

The lender of Last Resort. It will lend to banks in trouble.

Development Banks

These were set up to give long term finance for the development of the

country. These are the Industrial Finance Corporation of India and the

Industrial Development Bank of India, The Industrial Reconstruction

Bank of India and the National Bank for Agriculture and Rural

Development. A former development bank, the Industrial Credit and

Investment Corporation of India Ltd. by a reverse merger in 2002,

became a normal commercial bank. It is expected that the other

development banks, having outlived their utility would also be either

converted to commercial banks or merged with commercial banks.

15
Public Sector Banks

These are banks which the Government either owns or has a majority

stake in.

The largest is the State Bank of India,which was formed by the merger of

the Presidency Banks the Bank of Bengal, the Bank of Bombay and the

Bank of Madras in 1921. It was then known as the Imperial Bank. It was

nationalized in 1955 by the passing of the State Bank of India Act, 1955.

It has seven subsidiaries or associates.

The other nationalized banks came into being on July 19, 1969 when

Mrs. Gandhis Government nationalized fourteen banks that had deposits

of Rs. 50 crores or more. On April 15, 1980, six more banks having

demand and time liabilities of not less than Rs.200 crores were

nationalized. This was done to take banking to the villages and serve the

developmental needs of all sectors of the economy.

Foreign Banks

These are branches of banks incorporated outside India.

The larger ones that have been operating in India for many years are

Standard Chartered Bank, Citibank, American Express Bank, ABN Amro,

BNP Paribas and Hong Kong and Shanghai Banking Corporation.

In 1995/ 96 many other foreign banks (optimistic in view of Indias

liberalization) opened branches in India. However, after banking began to

16
become increasingly competitive and margins began to squeeze coupled

with large non-performing assets, many banks closed their branches.

These include Dresdner Bank, Comerz Bank, KBC Bank and

Commercial Bank of Siam.

Private Sector Banks

These banks are not government owned or controlled. Their shares are

freely traded in the Stock Markets.

These may be divided into:

Old Private Sector Banks such Federal Bank, Dhanalakshmi

Bank, Catholic Syrian Bank

New generation Banks such as HDFC Bank, IDBI Bank,

UTI Bank and ICICI Bank. Those have permitted to open

provided they had a capital of Rs. 100 crores.

Cooperative Banks

Cooperative Banks are those that created by a group of individuals to

support either a community or a religious group. They operate in

metropolitan, urban and semi urban centers to cater to the need s of small

borrowers.

These are controlled by the RBI and by State Cooperative Acts.

In recent years these have been under a cloud on account as several

(particularly in Gujarat and Andhra Pradesh) collapsed under controversy.

17
They were used as vehicles by individuals to finance activities which did

not succeed.

Regional Rural Banks

These came into being on October 2, 1975 when 5 regional rural banks

were established under what became the Regional Rural Banks Act 1975.

These were to bridge the gap in rural credit granting loans and advances

to small and marginal farmers, artisans, small entrepreneurs and persons

of small means engaged in trade, commerce, industry or other productive

activities within their area of operation.

Local Area Banks

Local Area Banks came into existence in 1999 and licences were given

for these banks as it was felt that regular commercial banks were not

financial the rural/ agricultural sector adequately. Licences have given to

open branches in three districts. Branches in urban/ semi urban areas have

granted only after ten branches were established in rural areas/ villages.

Four licences were in total granted two in Andhra, one in Punjab and

one in Gujarat. They have opened with an initial capital of Rs. 5 crores.

A Report issued in 2002 has recommended that the capital should

increased to Rs. 25 crores and that these be permitted to operate in six

districts.
18
 HISTORY OF KOTAK MAHINDRA BANK

Established in 1985, the Kotak Mahindra group has been one of India's

most reputed financial conglomerates. In February 2003, Kotak Mahindra

Finance Ltd, the group's flagship company was given the license to carry

on banking business by the Reserve Bank of India (RBI). This approval

created banking history since Kotak Mahindra Finance Ltd. is the first

nonbanking finance company in India to convert itself in to a bank as

Kotak Mahindra Bank Ltd. Today, the bank is one of the fastest growing

bank and among the most admired financial institutions in India.

19
The bank has over 323 branches and a customer account base of over 2.7

million. Spread all over India, not just in the metros but in Tier II cities

and rural India as well, it is redefining the reach and power of banking.

Presently it is engaged in commercial banking, stock broking, mutual

funds, life insurance and investment banking. It caters to the financial

needs of individuals and corporates. The bank has an international

presence through its subsidiaries with offices in London, New York,

Dubai, Mauritius, San Francisco and Singapore that specialize in

providing services to overseas investors seeking to invest into India.

20
 ORGANIZATIONAL STURCTURE

How did banking originate? What activity resulted in Banking, as we

know it today? To answer these questions it is necessary to step back into

history to several thousands of years and study its origins.

Barter

Man was, in the dawn of history, simple and self-sufficient. He lived in

caves, killed animals when hungry and he had no other wants. As time

passed, men began living in villages and started to till the ground. Often

the produce of a farmers fields was more that he required. Similarly, a

fisherman often caught more than his family required. In the ideal

situation, the farmer would exchange his produce for fish with the

fisherman. This exchange is known as barter. And in the ideal world they

would both be content. However, a complication could and would arise if

the farmer did not require or want fish. If the farmer required a plough

and the smith requires steel there would be tremendous and horrendous

difficulty in matching those that individuals had with that which they

needed. And it was on account of this difficulty of meeting needs that the

barter system surrendered to money.

Money

Money was created or rather born to reduce the value of the items people

had to a common denominator to facilitate exchange of products to

21
satisfy needs. The fisherman would sell his fish as would the farmer for

money. The farmer would then armed with the money he has in hand

purchase a plough. The fisherman with the money he has received, would

buy the food he needs for his family.

The earliest form of money was bones on which marks were made to

distinguish between values. Metals then began to be used the most

popular being gold, silver and bronze. Symbols, sizes and signs on these

differed from time to time and from country to country. As men began to

travel from country to country to exchange goods and to trade, banking

was born.

The term money is derived from the temple of Juno Moneta which was

used by the Romans as a mint for their coins.

Banking

Banks were born to facilitate trade to lend monies to purchase goods, to

store monies and to change currencies. Banking began thousands of years

ago. The Assyrians, Babylonians and Ancient Greeks practiced simple

forms of banking safekeeping, exchanging foreign coins and making

loans mainly in connection with trade. Temples such as those of

Ephesus and Delphi were Greek banking institutions. The Romans did

not have State Banks but had minute regulations regarding private banks.

These were calculated to create utmost confidence in the system. Ancient

22
Rome had two types of bankers those who made loans and those who

exchanged foreign monies.

The term bank is derived from the Italian word banco which means

bench. The early bankers, the Jews of Lombard, transacted their business

at benches in the market place and later in inns and taverns. In those days

if a banker failed, his banco or bench was broken, hence the term

bankrupt. Another opinion is that the term bank evolved from the

German word back meaning a joint stock fund which was Italianised

into banco. As many of these inns/taverns were known by the signs

they had such as eagle, crossed swords etc.

23
 KOTAK MAHINDRA BANK

Kotak Mahindra is one of India's leading financial institutions, offering

complete financial solutions that encompass every sphere of life. From

commercial banking, to stock broking, to mutual funds, to life insurance,

to investment banking, the group caters to the financial needs of

individuals and corporate.

The group has a net worth of over Rs. 2,900 crores, employs around

8,800 people in its various businesses and has a distribution network of

branches, franchisees, representative offices and satellite offices across

282 cities and towns in India and offices in New York, London, Dubai

and Mauritius. The Group services around 2 million customer accounts.

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime

held by Ford Credit International (FCI) and FCI acquired the stake in

Ford Credit Kotak Mahindra (FCKM) held by Kotak Group.

In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in

Kotak Capital and Kotak Securities

Kotak Mahindra Bank, one of Indias leading private sector banks today

announced a major landmark opening of its 100th full fledged bank

branch in Saket, New Delhi. This is a record feat as Kotak Mahindra

Bank is the only private sector bank in India which has reached its 100th

24
bank branch in just 4 years, a feat that none of the other private sector

banks in India have achieved till date.

Mr. Uday S. Kotak is an Executive Vice Chairman and Managing

Director at Kotak Mahindra Bank Limited. He has been with the firm

since August, 2002. Mr. Kotak is the principal Founder and Promoter at

Kotak Mahindra Finance Ltd. He is responsible for the growth of Kotak

Mahindra from a fledgling finance company to a financial institution

providing the full basket of financial services. Mr. Kotak has over 18

years of experience in the financial services industry. He is Chairman and

Director of Kotak Mahindra Primus Limited. Mr. Kotak is also Director

25
of Kotak Mahindra Bank Limited. He is a Director of Kotak Mahindra

Asset Management Company Limited. He is the Chairman of Kotak

Securities Ltd. He is also on the board of the following subsidiary

companies of Kotak Mahindra Bank Limited: Kotak Securities Limited,

Kotak Mahindra Capital Company Limited, and OM Kotak Mahindra

Life Insurance Company Limited. Previously, he has served as Non

Executive Director of Blue Star Limited until October 2002. He is a

Member of Advisory Committee of National Stock Exchange of India

Ltd. Mr. Kotak, received a Post-graduate degree in Business

Administration from Jamnalal Bajaj Institute of Management Studies of

Mumbai University

Kotak Mahindra Bank amongst Hewitts Top 25 Best Employers

Mumbai, April 17, 2009: Kotak Mahindra Bank, one of Indias leading

private banks has bagged the Hewitt Best Employers in India award for

the second time in a row. Mr. Subhro Bhaduri Executive Vice President-

HR, Kotak Mahindra Bank received the Award. Speaking on the occasion

Mr. Bhaduri said, We are indeed very proud to be the recipients of the

Prestigious Hewitt-Outlook Business Best Employers in India Study for

the second time. Our People practices are aligned to our culture and

values and this makes Kotak Mahindra Bank a preferred employer in the

industry. Through significant time, energy and investment in people

26
Management practices and processes, we have been able to maintain

Kotak Mahindra Bank as one of the Best Employers in India in 2009.

An independent jury comprising of has selected the Hewitt Best

Employer awardees

eminent members from the industry and academic world. The 2009 study

also introduced new research initiatives to evaluate how new dimensions

such as personal values, CSR, and workplace diversity impact human

capital management for business growth and witnessed participation from

over 230 organizations. The views of over 800,000 employees have been

represented by over 46,000 employees across India, making this one of

the largest employee research studies conducted in the country.

SOME OF THE IMPORTANT MILESTONES OF KOTAK

MAHINDRA GROUP
1986: Kotak Mahindra Finance Limited starts the activity of Bill

Discounting
1987: Kotak Mahindra Finance Limited enters the Lease and Hire

Purchase Market.
1990: The Auto Finance division is started
1991: The Investment Banking Division is started. Takes over FICOM,

one of India Enters the Funds Syndication sector

1995: Brokerage and Distribution businesses incorporated into a separate

Company - Kotak Securities. Investment Banking division incorporated

into a separate Company - Kotak Mahindra Capital Company

27
1996: The Auto Finance Business is hived off into a separate company -

Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra

Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit

Kotak Mahindra Limited, for financing Ford vehicles. The launch of

Matrix Information Services Limited marks the Groups entry into

information distribution.
1998: Enters the mutual fund market with the launch of Kotak Mahindra

Asset Management Company.

2000: Kotak Mahindra ties up with Old Mutual plc. for the Life

Insurance business. Kotak Securities launches its on-line broking site

(www.kotaksecurities.com). Commencement of private equity activity

through setting up of Kotak Mahindra Venture Capital Fund.

2001: Matrix sold to Friday Corporation Launches Insurance Services
2003: Kotak Mahindra Finance Ltd. converts to a commercial bank the

first Indian Company to do so.

2004: Launches India Growth Fund, a private equity fund.
2005: Kotak Group realigns joint venture in Ford Credit; Buys Kotak

Mahindra Prime (formerly known as Kotak Mahindra Primus Limited)

and sells Ford credit Kotak Mahindra. Launches a real estate fund.

28
 Growth Story of Kotak Group

29
 UDAY KOTAK EXECUTIVE VICE CHAIRMAN AND MANAGING

DIRECTOR

KOTAK MAHINDRA BANK LIMITED

As a young 26-year old entrepreneur in 1985, Uday Kotak started Kotak

Capital Management Finance Ltd. (which later became Kotak Mahindra

Finance Ltd). The vision was to eventually become a banking company.

Private Indian banks were not even a speck on the horizon at that time.

On 22nd March 2003, Kotak Mahindra Finance Ltd. became the first

non-banking financial company (NBFC) in India's corporate history to be

converted into a bank.

Kotak Mahindra Bank Ltd. (KMBL) is regarded as one of the most

efficient and high performing banks in India, built on the principles of

simplicity and prudence. Uday remains unfazed by market euphoria and

his 'basics of banking' approach has ensured that the loan book is of high

quality and the bank is well-capitalised. In a journey spanning nearly

three decades, Uday has not only helped the company grow to this scale

but also earn respect.

30
 Today, Kotak Mahindra Group, a first generation enterprise, with

networth of Rs. 33,361 crore (approx. US$ 5 billion), has a global

presence, employs over 46,500 people and is recognised as one of the

topmost employers in India. The group has the distinction of providing a

40% CAGR to its shareholders over a 30 year period. The core of the

business model is 'concentrated India, diversified financial services'.

Uday has a strong focus on community development and inclusive

growth which is reflected by the Group's initiatives to provide low cost

services to rural customers and its welfare programmes. Uday feels

strongly that education is key to the alleviation of the social malaise

afflicting India's under-privileged. In a bid to address this issue, he has

established the Kotak Education Foundation that focuses on the

educational needs of underprivileged children.

Uday holds a Bachelor's degree in Commerce and an MBA from Jamnalal

Bajaj Institute of Management Studies, Mumbai.

Membership

Co-Chair of Indo-UK Financial Services Partnership (IUKFP) by

Ministry of Finance (MoF), Government of India (GoI)

Member of the Primary Market Advisory Committee of the

Securities & Exchange Board of India (SEBI)

31
 Member of the Board of Governors of the National Institute of

Securities Markets and ICRIER

Governing Member of the Mahindra United World College of India

Member of National Council of CII

Served as member of Government of India's High Level

Committee on Financing Infrastructure, which was set up by Government

of India in 2010

32
 Business Processes

Transaction Banking

Kotak Mahindra Bank's Transaction Banking is the process of

optimisation of receivables and payables while ensuring predictability in

the cash flows. In a geographically large country like India, which has a

complex financial clearing system, you will find it increasingly

challenging to process collections and payments across dispersed

business locations. This results in delayed realization and uncertainty in

the funds flow resulting in additional borrowing and resultant increased

borrowing cost.

Efficient Transaction Banking is about 'getting funds in time', quick

transfers, faster realization of local and outstation cheques, easy

disbursements, account reconciliation, controlled processes and

customised MIS. Transaction Banking eliminates the inherent delays of

the traditional funds transfer mechanism, enhancing liquidity and

ensuring optimum planning and utilization of funds.

The Bank's Cash Management Services include the following basic

components:

1. Collection or Receivables Management

33
2. Payment or Payables Management

3. Liquidity and Investment Management Services

Feature and Benefits

1. Optimal management of payables and receivables

2. Efficient cash flow management

3. Financial Benefits: You can reduce interest cost on borrowings by

getting access to your funds faster. Additionally you will be able to

improve the firm's liquidity position by realizing cheques sooner,

and also positively impacting the Balance Sheet and Financial

Ratios.

4. Operational Benefits: You will be able to manage Banking &

Treasury functions with a significant reduction in resource-costs as

a major part of the Funds and Liquidity Management Functions get

outsourced to the Bank. This clearly stands out as a cost saving

device.

5. Control Benefits: Cash Management Services allows you to

maintain better control over various Banking and Treasury related

activities, improving turnaround time and faster reconciliation.

This product also takes care of fraud prevention, security and other

controls.

34
 6. Collection: We collect funds on your behalf from your debtors,

such as retail investors, corporates, and institutions etc. These

funds can be in the form of cash, cheques, demand drafts or pay

orders. The instruments are sent to the appropriate clearing houses

and the funds are collected. All the collected funds are

subsequently deposited into a central account, the 'Brokers Pooling

Account'.

7. Payments: We provide you a payable At-Par Cheque Book, which

enables you to issue local cheques at all branch locations of Kotak

Mahindra Bank. Our At-par cheque facility helps you to eliminate

the hassles of obtaining demand drafts or opening current account

at each location. Through our other disbursement solutions, you

can also carry out bulk disbursement either through a fax or an

email instruction in the form of:

o Bulk Demand Draft

o Remote Pay-out

o Cheque Writing

35
 KOTAK SYMBOL

36
 KOTAK PRODUCT LINE

SAVINGS ACCOUNTS

Our Savings Accounts are designed to ensure you receive the benefits of

quick & convenient banking transactions along with options for your

money to earn high returns. The savings account goes beyond the

traditional role of savings, to provide you a range of services from funds

transfer options to online payments of bills to attractive returns earned

through a comprehensive suite of investment options.`

We have a number of variants of our savings accounts customized to suit

your individual needs so pick the one that matches your requirements &

sit back to enjoy the Kotak experience!

TERM DEPOSITS

Kotak Mahindra Bank brings you Term Deposit at highly attractive

interest rates coupled with special facilities like Overdraft and Re-

investment option.

Features & Benefits

Ease and convenience of operation not a Kotak Bank customer and wish

to apply for term deposit online?

37
For the first time in India, New To Bank customer can also apply online

for term deposit.

If you are an existing customer, you can place a term deposit through

Phone Banking or Net Banking. What's more, you can even renew this

deposit by placing an instruction over phone. Needless to mention, he can

do all this and more by walking across into any of our branches.

Liquidity through overdraft or sweep-in facility your deposit will be

available to you should you need them in case of an emergency. You can

avail up to 85% overdraft against your term by paying 2% above your

deposit rate. This facility is available for deposits above Rs.50,000 for a

tenure of 181 days or more. You can also choose to link your term deposit

to your savings / current account, whereby if need be, your term deposit

will automatically be encased to meet your withdrawal requirement.

No penalty on pre-mature encashment In case your term deposit is pre-

maturely encased, you will earn interest at the rate prevailing on the date

of deposit for the withdrawn amount.

Nomination facility available You can avail this facility for each & every

account that you open with us i.e. nominate different persons for different

term deposit accounts. You can choose to change the nominee through a

declaration in the appropriate form to revise the nomination during the

term of the deposit.

38
In case you are availing the 2-Way-Sweep feature, nomination, if any,

made by you in respect of the savings / current account for which you are

availing this feature will be deemed to be the nomination for any sweep

TD created pursuant to the Active Money feature availed by you.

DEMAT ACCOUNT

We offer streamlined, efficient depository services that allow you to hold

your shares in convenient, "demat" formats and leverage opportunities in

the stock market when you spot them.

Our services include

Dedicated and trained Customer Care Officer to handle and answer

all your queries.

Highly competitive service charges. For the current charges on our

demat services

Three in one account Demat, Trading, Bank have all in one

account. For details

Free Online access to your Demat account

We also cater to the debt requirements of companies, including the

issue of Commercial Paper, Certificate of Deposits, etc. We also

provide a composite Demat account that can hold Equity shares as

well as Government Securities, Bonds etc.

39
LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance Ltd.

Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture

between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra

Old Mutual Life Insurance is one of the fastest growing insurance

companies in India and has shown remarkable growth since its inception

in 2001.

Old Mutual, a company with 160 years experience in life insurance, is an

international financial services group listed on the London Stock

Exchange and included in the FTSE 100 list of companies, with assets

under management worth $ 400 Billion as on 30th June, 2006. For

customers, this joint venture translates into a company that combines

international expertise with the understanding of the local market.

MUTUAL FUND

Kotak Mahindra Asset Management Company Limited (KMAMC)

Kotak Mahindra Asset Management Company Limited (KMAMC), a

wholly owned subsidiary of KMBL, is the Asset Manager for Kotak

Mahindra Mutual Fund (KMMF). KMAMC started operations in

December 1998 and has over 4 Lac investors in various schemes. KMMF
40
offers schemes catering to investors with varying risk - return profiles and

was the first fund house in the country to launch a dedicated gilt scheme

investing only in government securities.

We are sponsored by Kotak Mahindra Bank Limited, one of India's fastest

growing banks, with a pedigree of over twenty years in the Indian

Financial Markets. Kotak Mahindra Asset Management Co. Ltd., a

wholly owned subsidiary of the bank, is our Investment Manager.

We made a humble beginning in the Mutual Fund space with the launch

of our first scheme in December, 1998. Today we offer a complete

bouquet of products and services suiting the diverse and varying needs

and risk-return profiles of our investors.

We are committed to offering innovative investment solutions and world

class services and conveniences to facilitate wealth creation for our

investors.

CAR FINANCE

Kotak Mahindra Prime Limited (KMPL) is a subsidiary of Kotak

Mahindra Bank Limited formed to finance all passenger vehicles. The

company is dedicated to financing and supporting automotive and

automotive related manufacturers, dealers and retail customers.The

Company offers car financing in the form of loans for the entire range of

passenger cars and multi utility vehicles. The Company also offers
41
Inventory funding to car dealers and has entered into strategic

arrangement with various car manufacturers

HOME LOAN

Why are home loans the best way to materialize your dream? The reasons

are simple and straight-forward. The decision to buy a home is one of the

biggest financial decisions that an individual takes. There are many

concerns that an individual grapples with while considering his

requirements, because a home often truly represents the wholeness of his

personality and aspirations. Whatever the purpose of buying a home is -

whether it is a place to reside in, an investment in property to avail capital

appreciation, or a source of rental income, availing a home loan is today

the most convenient and best way to realize ones dream.

At Kotak Mahindra Bank, we offer highly customized facilities of

availing home loans. Importantly, we appoint a dedicated manager who

takes customers through the entire process, starting with the filling in of

the application forms and culminating in the loan disbursement process.

This otherwise seemingly difficult process is made simpler and more

convenient for the customer. Sometimes, customers are unable to spare

that extra time from their hectic schedules, and the Bank Doorstep

Service makes the home buying process seamless and pleasurable. A

42
relationship that is happy from the start is extended through the attention

the customer gets through his loan repayment tenure and beyond.

Features & Benefits

The key advantages of Kotak Mahindra Bank Home Loans are:

High Eligibility for Businessmen

Doorstep Service

Attractive Interest Rates

Simplified Documentation

Insurance Options to cover your home loans at attractive premium

Quicker Turnaround time

PERSONAL LOAN

Our quick and easy Personal Loans are called Jaldi Loans. Our Personal

Loans help to make a difference in your life. No matter what your

financial needs are - unexpected expenses, school fees, wedding in the

family, home improvement or that long awaited vacation. Whatever the

occasion, our range of Personal Loans can help.

The procedure is simple, documentation is minimal and approval is

quick.

Features and Benefits

43
Avail loans from Rs.50,000 - 50 lakh*: You can avail of a loan from

Rs.50,000 - 50 lakh* for any purpose based on your income and

repayment capacity and fulfill all your financial needs.

Quick approval: With a Jaldi Loan, you are not far away from making

your dreams come true. In as less as 72 hours you can turn your dreams

into reality.

Minimal paperwork & hassle free processing: Our minimal document

requirements leave you tension and hassle free. Additionally, worries are

kept at bay, as no security or collateral is required.

Flexible repayment options: Our flexible loan tenors range from 12 - 60

months for salaried customers and 12- 36 months from businessmen /

professionals, which don't overburden you with a worry to pay heavy

EMIs.

Convenience of service at your doorstep: Our Jaldi Loans are just a phone

call away; you can fix an appointment with any of representatives and

they could assist you in all your loan formalities.

Customer privileges:

If you are a Kotak Mahindra Bank account holder, we have special

rates for you.

44
 If you are an auto / personal / home loan customer or are a credit

card holder or paying an insurance premium or enjoying an OD/CC

facility avail of instant loans without income documents.

If you are an existing Kotak Mahindra Bank Personal Loan

customer with a clear repayment of 12 months or more, we can

Top-Up your personal loan.

COMMERCIAL LOANS

FIRST Group (FG) represents the asset arm of Kotak Bank which offers a

one stop shop for all financial needs of customers of Transportation,

Logistics, Infrastructure, and Tractor Industries.

Through our varied products, we commit ourselves to becoming banker

to the customer rather than being asset financier to our customers.

The FIRST Groups services offered include :-

PRODUCT PORTFOLIO

Commercial Vehicle Financing

Infrastructure Financing

Tractor and Farm Equipment Financing

SARAL Loans

Working Capital Financing

GOLD

45
Kotak Mahindra Bank brings you Gold Eternity, 24 Carat pure gold coins

and bars, carrying a 99.99% Assay Certification, signifying the highest

level of purity as per international standards.

Manufactured in Switzerland by PAMP, one of the worlds premier

gold refiners and a brand recognized world wide as a guarantee of

excellence and quality

Certified by one of the top assayers in the world

Tamper proof packaging to ensure the purity of the gold bar

Unique number on every certicard, with records maintained in

Switzerland

Competitive pricing based on daily pricing in the international

bullion market

Kotak Gold Eternity come to you in varied denominations. You can

choose from a range of coins and bars in 5gm, 8gm, 20gm, 50 gm

and 100 gm.

CURRENT ACCOUNT

At Kotak Mahindra Bank, we know how critical it is for your business to

have quick and timely access to funds. We also understand how important

smooth and seamless banking transactions are for business relationships.

46
Our Current Accounts have been designed to help you compete

effectively in the contemporary business environment. They include a 2

Way Sweep feature that delivers liquidity combined with higher returns.

47
Features and Benefits

Minimum Account Balance required is Nil

2 Way Sweep for liquidity and higher returns

Free-up country cheque collection for 13 locations

Personalised Cheque book

KOTAK CREDIT CARDS

FORTUNE GOLD CARD

INTEREST FREE CASH WITHDRAWALS

ZERO CHARGE EMI

2.5% FUEL SURCHARGE WAIVER

0% BALANCE TRANSFER

FREE FOR LIFE

TRUMP GOLD CARD

10% CASH BACK ACROSS ALL RESTAURANTS

10% CASH BACK ON MOVIES AND PLAYS

ZERO CHARGE EMI

2.5% FUEL SURCHARGE WAIVER

FREE FOR LIFE

LEAGUE PLATINUM CARD

EXCLUSIVE DINING BENEFITS AT THE TAJ

AUTO ENCASHMENT OF REWARD POINTS

48
 SMS US AND WE WILL REACH YOU

LOST OR STOLEN CARD FRAUD COVER

ROYALE SIGNATURE CARD

SPECIAL CONCIERGE SERVICES TO ASSIST YOU

ENJOY GOLF PRIVILEGES WORLDWIDE

AUTO ENCASHMENT OF REWARD POINTS

LOST OR STOLEN CARD FRAUD COVER

EXCLUSIVE DINING BENEFITS AT THE TAJ

49
 PRODUCTS AND SERVICES

The bank offers complete financial solutions for infinite needs of

all individual and nonindividual customers depending on the

customer's need delivered through a state of the art technology

platform. Investment products like Mutual Funds, Life Insurance,

retailing of gold coins and bars etc are also offered. The bank follows

a mix of both open and closed architecture for distribution of the

investment products. All this is backed by strong, inhouse research

on Mutual Funds.

The banks savings account goes beyond the traditional role of

savings, and allows us to put aside a lot more than just money. The

worryfree feature of Savings Account provides a range of services

from funds transfer, bill payments, 2way sweep through our Active

Money feature and much more. We can place standing instructions for

investment options that can be booked through Internet or through

Phone banking services. The Savings Account thus provides for

attractive returns earned through a comprehensive suite products and

services that offer investment options, all delivered seamlessly to the

customer by well integrated technology platforms.

50
 Apart from Phone banking and Internet banking, the Bank offers

convenient banking facility through Mobile banking, SMS services,

Netc@rd, Home banking and BillPay facility among others.

The Depository services offered by the Bank allows the customers

to hold equity shares, government securities, bonds and other

securities in electronic or Demat forms.

The Salary 2 Wealth offering provides comprehensive

administrative solutions for Corporates with features such as easy and

automated web based salary upload process thereby eliminating the

paper work involved in the process, a dedicated relationship manager

to service the corporate account, customized promotions and tie ups

and many such unique features. The whole gamut of investment

products and investment advisory services is available to the salary

account holders as well.

For the business community, the bank offer comprehensive

business solutions that include the Current Account, Trade Services,

Cash Management Service and Credit Facilities. The banks

wholesale banking products offer business banking solutions for

longterm investments and working capital needs, advice on mergers

and acquisitions and equipment financing. To meet special needs of

the rural market, the bank has dedicated business offerings for
51
 agricultural financing and infrastructure. Its Agriculture Finance

division delivers customized products for capital financing and

equipment financing needs of our rural customers.

For financial liquidity the bank offers loans that meet personal

requirements with quick approval and flexible payment options. To

complete the personal financial offerings space, the bank now offers

Kotak Credit Card which is a hasslefree, transparent product that

also happens to be the first vertical credit card in the industry.

Kotak Mahindra Bank addresses the entire spectrum of financial

needs of NonResident Indians. The bank has tieup with the

Overseas Indian Facilitation Centre (OIFC) as a strategic partner,

which gives them a platform to share their comprehensive range of

banking and investment products and services for Non Resident

Indians (NRIs) and Persons of Indian Origin (PIOs). Their Online

Account Opening facility and Live Chat service helps to get in touch

at the comfort of homes and at the convenience. These offerings are

specifically designed to suit the overseas Indian's personal financial

needs and give the global Indians a near to home feel.

52
 ATM NETWORK

The ATM service is available to you absolutely FREE

Our strategically located and constantly growing ATM network brings the

bank within your easy reach.

The state of the art touch screen Kotak Mahindra Bank ATMs are part of

the Visa/Plus ATM network. That means you can withdraw cash from our

ATM Network with International and Domestic Visa/Visa Electron/Plus

Credit Cards/Debit Cards.

With our special arrangement with HDFC Bank, you can use your Kotak

Mahindra Bank Global Debit Card at over 1450 HDFC Bank ATMs

absolutely free

onstantly growing ATM network brings the bank within your easy reach.

The ATM service is available to you absolutely FREE

Our strategically located and constantly growing ATM network brings the

bank within your easy reach.

The state of the art touch screen Kotak Mahindra Bank ATMs are part of

the Visa/Plus and Cashnet ATM network. That means you can withdraw

cash from our ATM Network with any International and Domestic

Visa/Visa Electron/Plus Credit Cards/Debit Cards.

53
 Key Features

Access your account anytime anywhere

State of the art Touch Screen ATMs

Affiliated to the VISA network

Access any ATM in the country absolutely free.

Services available

24-hour access to cash

Transfer funds between accounts

View Account Balances and Mini Statement

Pin Change option

Call our 24-hour Customer Contact Center to know more.

NETBANKING

Kotak Mahindra Bank's Net Banking service brings you the timeless

world of instant banking. It is quick and easy, available to you 24X7 and

it's absolutely free!

Key Features

Bank 24X7 - anywhere, anytime

54
 Move Money - Within your own Kotak Accounts, to someone

else's Kotak Account, to another bank via NEFT/ RTGS and Demand

Draft. You have the option to 'Pay Now', 'Pay at a later date' or 'Schedule

Regular Payments'. You even have the option to 'Save' the Transaction

and pay when desired. You can even view all your 'Completed

Transactions' along with the status.

You can book a Term Deposit and can do a premature withdrawal

online.

You can add a Beneficiary and Multiple accounts can be mapped

for a beneficiary for Transfer Type. (E.g. - NEFT / RTGS etc).

Beneficiaries added at other channels like branch too, will be available

for the customer on Net Banking to make a transfer to.

View details across Accounts, Term Deposits and Demat Accounts

Pay your utility bills , VISA Credit Card bills, Recharge Prepaid

Mobile phones and DTH accounts and even pay your Direct tax through

Kotak BillPay

Safe online shopping with Kotak Netc@rd

ASBA-apply for IPO/FPO/Rights Issue without any paper-work

and from the convenience of your home / office.

Invest /Redeem in Mutual Funds online and much more

Stringent security offers complete peace of mind

55
56
 Net Banking Features - What all can you do online?

Net Banking gives you a host of services, giving you complete control of

your accounts:

View account balance, account activity, place standing instructions

and cheque status

Open a Term Deposit

Transfer funds online between your/third party accounts with

Kotak Mahindra Bank or any other bank account via RBI's NEFT or

RTGS system

Place request for a cheque book, Debit Card PIN , payment

gateway registration and lots more

Pay your Utility Bills on Kotak BillPay

Safe online shopping with Kotak Netc@rd

View securities available for Demat

View current Mutual Fund holdings, Buy and redeem Mutual

Funds online

Shop online at over 3000 websites; make utility bill payments and

much more via Kotak Payment Gateway. Know more about Kotak

Payment Gateway

Banking Accounts

57
 Demat Accounts

Investments

Kotak Netc@rd

Kotak BillPay / Get Money

ASBA

Requests

Profile

Mail

Statement

How secure is Net Banking?

Protected by the most stringent security systems, Net Banking allows you

to transact over a completely secure medium. All your transactions travel

via 256-bit SSL encrypted medium, the highest level of security on the

internet. The servers are protected with firewalls that make unauthorized

access impossible.

Each customer is, provided with a User ID and Password. Your password

is generated in such a way that it is only known to you. To provide

enhanced security and safety we have introduced Dynamic Access Code.

To log in to Net Banking / Payment Gateway/Mobile Banking you would

58
 need to enter an additional password i.e. your 'Dynamic Access Code'.

This Dynamic Access Code is to be generated online and will be sent

instantly to your preferred Email ID and Mobile Number registered with

the Bank. Dynamic Access Code is valid for an hour from the time it is

generated by you.

Dynamic Access Code can be generated by entering your User ID / Nick

Name and your Net Banking Password and clicking on 'Generate

Dynamic Access Code' tab on the Dynamic Access Code login page. For

Payment gateway transactions, customers will be required to enter

Dynamic Access Code irrespective of the customer being deregistered for

Dynamic Access Code. Similarly, for creating NetC@rd, registration of

Dynamic Access Code is compulsory.

In addition we guard against unauthorised entry or viewing in the

following ways:

To prevent somebody from guessing your password and getting

unauthorised access to your account your User ID is locked in case of

three consecutive wrong password entries in 24 hours. Similarly, to

prevent somebody from guessing your Dynamic Access Code and getting

unauthorised access to your account generation of Dynamic Access Code

is locked in case of five consecutive wrong entries of Dynamic Access

Code of in 24 Hours
59
 To prevent an unauthorised person from viewing your Net Banking

account in case you leave your computer idle, we close your Internet

session in case of inactivity for an extended period of time.

You can block your account anytime for any duration you wish by

contacting our Customer Care Officer at our 24-hour Customer Contact

Center. It is unblocked upon your request.

To prevent somebody from accessing your Net Banking User ID

and Password through capturing of keystrokes from a keyboard, we have

now enabled the 'Virtual Keypad' on the Net Banking / Payment Gateway

Login screen.

Access Code and transaction alerts are sent to your preferred Email

ID and Mobile Number registered with the Bank. For security reasons,

you will not be able to change your preferred Email ID or Mobile

Number through Net Banking and would need to submit a signed request

along with an acceptable proof of identity at your nearest Kotak

Mahindra Bank's Branch

ONLINE BANKING

Experience online banking - without a pc or internet connection

Welcome to the world of convenience banking on your Mobile phone.

Now, you can experience the benefits of online banking anywhere and

anytime, without the need for a computer. All this absolutely FREE*!
60
 Using the service, you can access your bank accounts and investment

accounts at your fingertips, anytime, anywhere.

All this convenience comes to you on a secure and user friendly GPRS-

based Mobile Banking platform.

Key Features

Anytime, Anywhere Banking

Experience online banking - without a PC or internet connection

View details across Accounts, Term Deposits and Investments

Send and receive money from your mobile instantly via Interbank

Mobile Payment Service(IMPS)

Pay utility bills

Invest/Redeem in Mutual Funds - anytime, anywhere

Secured platform - encrypted communication

Mobile Banking Features

Menu driven service - no need to remember complex codes

Security through 256 bit encryption.

Check your account balances for Current, Savings & Term Deposit

accounts

View your account activity

61
 Transfer funds between your accounts or other accounts in Kotak

Bank

Send and receive money from your mobile instantly via Interbank

Mobile Payment Service (IMPS)

Make payments to selected merchants via IMPS Merchant

Payments

Purchase & redeem Mutual Fund units

Report loss/theft of Debit Card and request for replacement

Check status of your Cheque instruments

Request issue of new Cheque book

Pay Utility Bills to over 150 service providers

Make VISA credit card payment

Please Note:

i. You can make payments via mobile banking for the registered

billers only. To register / add a biller on Kotak BillPay, login to

Kotak Net Banking. Alternatively you can call up our 24-hour

Customer Contact Centre or visit the nearest bank branch

ii. Daily limits for Visa credit card payment is Rs.49,999

iii. You can only transfer funds between Kotak accounts and to those

beneficiaries registered on your Kotak Net Banking. To register a

beneficiary, logon to www.kotak.com.

62
 iv. IMPS facility is available for the banks participating in Interbank

Mobile Payment Service (IMPS). To view the list of banks please

click here

What you need to access this service

To access Kotak Mobile Banking you need:

A Kotak Mahindra Bank account

A Java-enabled handset

An active GPRS connection (Advanced GPRS recommended) from

your service provider

Registration for Net Banking and a Net banking password

Activation Key - the Activation Key is generated on first login,

which needs to be activated by forwarding the activation key, received on

your preferred mobile number to 9971056767/ 5676788 or visit the

nearest branch.

Security Features

Kotak Mobile banking platform uses secured Https protocol for

communication between the mobile client and the mobile server.

Protected by the most stringent security systems, Kotak Mobile Banking

allows you to transact over a completely secure medium. All your

transactions travel via 256-bit SSL encrypted medium, the highest level

63
of security on the network. The servers are protected with firewalls that

make unauthorized access impossible.

Downloading the Application

All you need to get started using Kotak Mobile Banking is to download

the application by sending K MOBILE <Last 4 digits of your CRN> as

SMS to 9971056767/5676788. Please note you need to send the message

from the preferred mobile number you have registered with the bank. You

can also call our 24-hour Customer Contact Centre for downloading

Kotak Mobile Banking application. You would be receiving the link to

download the application on your mobile number registered with the

bank. Please make sure that you have updated your current mobile

number with us.

Registration

Login to Kotak Mobile Banking with your Net Banking user ID and

password to receive Activation Key on your preferred mobile number and

email id registered with the bank. To activate Mobile Banking on your

handset, simply forward the activation key, received on your preferred

mobile number to 9971056767/5676788 or visit the nearest branch.

*Mobile Banking is offered to our customers absolutely FREE. There are

no charges levied by us for accessing this service. However, please note

64
that you will need to pay for the GPRS subscription charges as levied by

your Mobile phone service providers

65
 Achievements / Recognitions

Sole Indian Financier to feature in Money Masters: The Most

Powerful People in The Financial World, by Forbes magazine, USA (May

2016)

Received the 'AIMA-JRD Tata Corporate Leadership Award' for

the year 2015 at AIMA's 2nd National Leadership Conclave

Received 'Best Transformational Leader Award 2015' by Asian

Centre for Corporate Governance & Sustainability in 2016

Recognised as 'ET Business Leader of the Year' at ET Awards 2015

for Corporate Excellence

Recognised as 'Entrepreneur of the Year' at Forbes India

Leadership Awards 2015

Recognised as 'Entrepreneur of the Decade' by Bombay

Management Association (BMA) in 2015

Recognised as Banker of the Year 2014 by Businessworld

Won 'Transformational Business Leader Award' at the AIMA

Managing India Award 2014

Won Ernst & Young World Entrepreneur of the Year 2014 Award

Won Ernst & Young Entrepreneur of the Year 2013 Award (India)

Felicitated with 'Financial Leadership Award' at NDTV Profit's

Business Leadership Award 2011

66
 Recognised as CNBC Asia's Business Leader of the Year in 2008

Featured as 'Global leaders for tomorrow' at the World Economic

Forum's annual meet at Davos in 1996

MR. DIPAK GUPTAJOINT MANAGING DIRECTOR

KOTAK MAHINDRA BANK LIMITED

Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank has been

with Kotak Mahindra Group since 1992. He was appointed as Executive

Director of Kotak Mahindra Finance Limited (now Kotak Mahindra Bank

Limited) on 1st October 1999.

Effective May 2016, Dipak heads the Group Treasury, Wealth

Management and Asset Reconstruction business of the Bank, and has

oversight over the Alternative Investments business of Kotak Mahindra

Group.

67
Dipak is part of the Bank's Management Committee (MANCOM) and

Bank's Operating Management Committee (OMANCOM) that drives and

oversees the Kotak Group's growth charter.

With over 30 years' experience, he has played a key role in building

various businesses for Kotak Mahindra Group. Dipak was instrumental

in the collaboration of Kotak Mahindra with Ford Credit International to

form Kotak Mahindra Primus Limited (KMPL), of which he was the first

CEO. He was also responsible for setting up the retail businesses post the

conversion of KMFL into a Bank.

Prior to joining Kotak, Dipak had worked in the consultancy division of

A.F. Fergusson.

Dipak is a graduate in Electronics Engineering from IIT, Varanasi and a

postgraduate in Management from the Indian Institute of Management,

Ahmedabad (IIMA).

68
 SWOT ANALYSIS OF KOTAK MAHINDRA

Kotak Mahindra Bank

Parent Company Privately owned bank
Category Banking Services
Sector Banking and finance
Tagline/ Slogan Lets make money simple
USP Professionalism in Banking
STP
Segment Individual and Industry banking
Target Group Investment Sector
Positioning Complete Banking solutions
SWOT Analysis
1. Innovative financial products of diverse categories

2. Kotak Mahindra Finance Ltd. is the first company in

the Indian banking history to convert to a bank

3. Comprehensive Cash Management System

4. Has over 20,000 employees

Strengths 5. Customer account base of over 2.7 million

1. Lesser penetration as being late entrants

2. Low publicity and marketing as compared to other

Weaknesses premium banks in the urban areas

69
 1. Increase in Industry banking

Opportunities 2. Explore opportunities abroad by International banking

1. Economic slowdown

2. Highly competitive environment

Threats 3. Stringent Banking Norms

Competition
1. Axis bank

2. Union Bank of India

Competitors 3. Federal bank

70
 MARKETING STRATEGIES OF KOTAK

Marketing at Kotak Mahindra Bank categorizes in to four departments -

Marketing Communications, PR & Corporate Communications,

Marketing Activation & Marketing Operations. These departments act as

an advisory and support channel towards marketing strategies and PR

planning to ensure effective brand building through brand awareness and

visibility. The objective is to implement effective campaigns and

promotions which would help in meeting the business targets and getting

media coverage for the same.

We provide support at two broad levels - Branch Marketing and Central

Marketing.

Marketing Activation

All marketing activities done at a branch level come under branch

marketing. This may be in the form of new branch launches, branch based

events, sales promotions, merchandising, and creation of any marketing

collaterals for the branches. Branch centric PR & outdoor support also

comes under the branch marketing.

Promotion Documents

Promotion proposal

71
Please fill the promotion proposal once the branch finalizes a promotional

activity

Provide a description of the activity that you wish to undertake.

Please mention if any Special Offers like AQB waiver etc are required.

(For all AQB related offers approvals from Amit Pathak, & Amresh

Mohan are necessary.)

Other details like Venue, activity period needs to be filled in correctly.

If you need any marketing or promotion material please specify the

correct quantity

Detail out planned cost break up for any sponsorship or manpower that

you need for the activity.

Give the planned promotion output in form of planned leads and

conversions. We can then match them with the actual leads and

conversions post the activity.

Branch Manager or any relevant authority needs to approve the activity.

To download a copy of a promotion proposal please click here

Promotion Codes

Promotion codes are generated to track the efficiency of the activity.

Marketing generates the code once the activity is approved.

Marketing Communications

72
Marketing Communications takes care of the creation, rollout and

analysis of all national campaigns at the brand and product level. This

includes doing various brand and product campaigns as well as researches

to monitor the growth of the brand and the campaign deliveries. This

department also takes care of creative conceptualization and rollout of all

regional requests (events, promotions, contests, campaigns) Central

marketing also provides support to both the product team and the

branches in terms of conceptualizing and standardizing marketing

collaterals. These include standard branch collaterals like posters,

banners, e-mailers, brochures etc.

Process for all Marketing Collaterals

Please fill in the creative brief with all relevant details which will help us

to understand your requirements and design appropriate collaterals for

you. Please ensure that the creative brief is filled in detail so that the

creative team gets an accurate understanding of the requirement. Partially

filled briefs / requests without creative brief will not be entertained.

After receiving the creative brief marketing would come up with design

of the collaterals and share it with the concerned team.

All collaterals will be subject to compliance/legal approval

Post compliance/legal approval the collaterals would be put into print.

73
Post campaign you are requested to send the details of the leads captured

business sourced, so that we can have an understanding of the

effectiveness of the campaigns.

All regional requests need to be routed through the respective Regional

Marketing Manager for that region.

74
 AWARDS & ACHIEVEMENTS

ICAI Award Excellence in Financial Reporting under Category 1

Banking Sector for the year ending 31st March, 2010

Asiamoney Best Local Cash Management Bank 2010

IDG India Kotak won the CIO 100 'The Agile 100' award 2010

IDRBT

Banking Technology Excellence Awards Best Bank Award in IT

Framework and Governance Among Other Banks' 2009

Banking Technology Award for IT Governance and Value Delivery,

2008

IR Global Rankings Best Corporate Governance Practices Ranked

among the top 5 companies in Asia Pacific, 2009

FinanceAsia Best Private Bank in India, for Wealth Management

business, 2009

Kotak Royal Signature Credit Card Was chosen 'Product of the Year'

in a survey conducted by Nielsen in 2009

IBA Banking Technology Awards

Best Customer Relationship Achievement Winner 2008 & 2009

Best overall winner, 2007

Best IT Team of the Year, 4 years in a row from 2006 to 2009

75
 Best IT Security Policies & Practices, 2007

Euromoney Best Private Banking Services (overall), 2009

Emerson Uptime Champion Awards Technology Senate Emerson

Uptime Championship Award in the BFSI category, 2008

2010

Best Investment Bank in India, 2010

Best Equity House in India, 2010

Best Broker in India, 2010

Best Domestic Equity House, 2010

Best Local Brokerage in the Asiamoney Brokers Poll 2010

Best Investment Bank in India, 2010

Best Bank for Equity Finance in India, 2010

Best Domestic Investment Bank, 2010

Best Investment Bank in India, 2006, 2007, 2008, 2009 & 2010

Best Equity House in India, 2008 & 2010

Best Domestic Equity House, 2008, 2009 & 2010

Kotak Mahindra Bank has launched a credit card called Kotak Trump

Card that offers 10% cash back on dining as well as movie and play

spends.

Kotak Mahindra Bank (KMB) has introduced Stock Ace, a new product
76
offering for individual customers which provides them the power of

instant liquidity.

2011

Kotak Mahindra Bank launches interbank mobile payment service

Milestones

1986 Kotak Mahindra Finance Ltd started the activity of Bill

Discounting

1987 Kotak Mahindra Finance Ltd entered the Lease and Hire

Purchase market

2003 Kotak Mahindra Finance Ltd. converted into a commercial

bank the first Indian company to do so.

2009 Kotak Mahindra Bank Ltd. opened a representative office

in Dubai. Entered Ahmedabad Commodity Exchange as anchor

investor.

77
 OUR VISION AND MISSION STATEMENT

An uncommon bond. Strengthened by a common vision.

Apart from common beliefs, values and objectives we believe in the

vision of a better tomorrow. It is this deep veneer of faith that has brought

us together and fortified our bond.

The global Indian financial services brand

Our customers will enjoy the benefits of dealing with a global Indian

brand that best understands their needs and delivers customised pragmatic

solutions across multiple platforms. We will be a world-class Indian

financial services group. Our technology and best practices will be

benchmarked along international lines while our understanding of

customers will be uniquely Indian. We will be more than a repository of

our customers' savings. We, the group, will be a single window to every

financial service in a customer's universe.

The most preferred employer in financial services

A culture of empowerment coupled with a spirit of enterprise, attracts

bright minds with an entrepreneurial streak to join us and stay with us.

78
Working with a home-grown, professionally-managed company, which

has partnerships with international leaders, gives our people a perspective

that is universal as well as unique.

The most trusted financial services company

We will create an ethos of trust across all our constituents. Adhering to

high standards of compliance and corporate governance will be an

integral part of building trust.

Value creation

Value creation rather than size alone will be our business driver.

79
 COMPETITORS PERFORMANCE OF THE ORGANIZATION

HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI's liberalisation of the Indian Banking Industry in 1994. The bank was

incorporated in August 1994 in the name of 'HDFC Bank Limited', with

its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

ICICI BANK

ICICI Bank is India's second-largest bank with total assets of Rs.

3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax

Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a

network of 1,471 branches and about 4,721 ATMs in India and presence

in 18 countries. ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers through a variety of

80
delivery channels and through its specialized subsidiaries and affiliates in

the areas of investment banking, life and non-life insurance, venture

capital and asset management.

SBI BANK

The origin of the State Bank of India goes back to the first decade of the

nineteenth century with the establishment of the Bank of Calcutta in

Calcutta on 2 June 1806. Three years later the bank received its charter

and was re-designed as the Bank of Bengal (2 January 1809). A unique

institution, it was the first joint-stock bank of British India sponsored by

the Government of Bengal. The Bank of Bombay (15 April 1840) and the

Bank of Madras (1 July 1843) followed the Bank of Bengal. These three

banks remained at the apex of modern banking in India till their

amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by

the felt needs of local European commerce and were not imposed from

outside in an arbitrary manner to modernize India's economy. Their

evolution was, however, shaped by ideas culled from similar

developments in Europe and England, and was influenced by changes

81
occurring in the structure of both the local trading environment and those

in the relations of the Indian economy to the economy of Europe and the

global economic framework.

AXIS BANK

Axis Bank was the first of the new private banks to have begun

operations in 1994, after the Government of India allowed new private

banks to be established. The Bank was promoted jointly by the

Administrator of the specified undertaking of the Unit Trust of India (UTI

- I), Life Insurance Corporation of India (LIC) and General Insurance

Corporation of India (GIC) and other four PSU insurance companies, i.e.

National Insurance Company Ltd., The New India Assurance Company

Ltd., The Oriental Insurance Company Ltd. and United India Insurance

Company Ltd.

The Bank today is capitalized to the extent of Rs. 359.76 crores with the

public holding (other than promoters) at 57.79%.

The Bank's Registered Office is at Ahmedabad and its Central Office is

located at Mumbai. The Bank has a very wide network of more than 853
82
branches and Extension Counters (as on 30th June 2009). The Bank has a

network of over 3723 ATMs (as on 30th June 2009) providing 24 hrs a

day banking convenience to its customers. This is one of the largest ATM

networks in the country.

The Bank has strengths in both retail and corporate banking and is

committed to adopting the best industry practices internationally in order

to achieve excellence.

SOME OTHER COMPETITORS ARE.

Features & Benefits - Kotak Ace Salary Account

EDGE Privileges

You need a savings avenue that makes the most of your hard-earned

money. We offer you the Kotak Edge Salary Account, armed with Kotak

83
ActivMoney and our entire gamut of Banking Privileges. The feature rich

Kotak Edge Salary Account is the ideal way to make your money work

harder.

Activ Money

Your Kotak Edge Salary Your Kotak Ace Salary Account combines

liquidity of a Savings Account with the attractive returns of a Term

Deposit through the unique Kotak Activ Money benefit.

Kotak Advantages

Your Ace Salary account comes to you with a host of advantages that are

aimed at providing you a superior Banking experience.

Free At-par Cheques

Kotak Mahindra Bank's At-par cheques are treated as 'local

clearing' cheques across select locations in the country. The At-par

Cheque facility comes to you 'free' of charge. You can now save

DD making charges while enjoying the convenience of a cheque.

Free Demand Drafts

Avail Demand Drafts, free of cost, payable at any location in India,

up to a pre-specified limit, just by calling our Phone Banking

Service.

Free Cheque Collection

84
 Outstation cheques, drawn on any of our branch locations, would

be collected 'free of charge' for you. Only a nominal charge is

levied for non-branch locations.

85
 Free Electronic Fund Transfer Transfer

Transfer funds to third party accounts in other banks, without

drawing a Demand Draft or a cheque, by using our Electronic Fund

Transfer facility. With this facility you can save on Demand Draft

making/couriering charges and also transfer funds faster!

Bill Pay Services

This service enables you to make your Utility Bill payments like

electricity, telephone and mobile phone bills.

Ace Privileges

Your Ace account has been designed with exclusive benefits that give an

extra fillip to your banking experience.

Free Demat Account

As an Ace Savings customer, you can also open a Demat Account

with us free of charge.

Reimbursement Current Account

As Salary account holders employees can also opt for a

Reimbursement account which helps you to manage the official

reimbursements, petty cash etc., this facility specifically will help

you eliminate cash handling related to petty expenses

86
 Family Savings Accounts

Your Ace account allows you to now extend the Kotak banking

experience to three of your family members. The Family Savings

Accounts come to you with a host of benefits like Kotak

ActivMoney, At-par Cheque facility and other attractive features.

So now even your dear ones can enjoy banking the 'Kotak way'!

Your savings account will be provided a link to your online trading

account with Kotak securities to enable your to transfer funds from

your bank account to your account with KS and vice versa". And

with our Payment Gateway facility you can even pay your trading

bills online from your bank account directly.

Free Investment Account

Avail a free Investment Account that provides you a consolidated

view of all your investments. The Investment Account statement

gives a 'single window view' of your Mutual Fund portfolio, listing

the NAV of each scheme invested into, current consolidated value

of your portfolio, and realized/unrealized returns against each

investment made.

Personal Investment Advisor

To identify and analyse your specific investment requirements we

provide you a dedicated Personal Investment Advisor. This person

87
 alerts you to investment opportunities, sends you regular updates

and feedback on the performance of your investments, helping you

monitor, manage and grow your wealth in the ever fluid investment

climate.

Convenience Banking

A host of Convenience Banking facilities allow you to access your

account anytime, anywhere.

Global Debit Card

Access your account free of cost at any VISA ATM in India or

abroad using your Global Debit Card. You can use your Debit Card

at all VISA affiliated merchant establishments worldwide. As an

Ace Savings account holder you

can gift free add-on cards to your family members too.

Phone Banking

Dial our 24 hour Toll Free number 1800 116022 (North India) OR

1800 226022 (Rest of India) from anywhere and our customer Care

Officer will help you instantly with your banking requirements.

Net Banking

Just log on to www.kotak.com to access our Net Banking facility.

Take advantage of the Internet to bank from home, office or

anywhere in the world at a time of your convenience.

88
 Mobile Banking & Alerts

Use this service to access your bank account anywhere, anytime!

It is quick and easy, available to you 24X7 and its absolutely free!

You dont have to pay any charge to avail this service. You can use

Mobile Banking to check account balance, last 3 transaction

details, issued cheque status and request a cheque book. You can

use Alerts Service to get Alerts by SMS and / or email whenever a

debit or credit above any amount specified by you happens to your

account.

89
 ISSUES AND CHALLENGES FOR THE COMPANY:

1. The company doesnt spend much on marketing and it actually

may be a reason for not being a market leader among the private

players.

2. The company has yet to make any significant presence in the

rural sector as the brand name is yet not famous in the rural

India.

3. The company has a conservative approach and they believe in

steady and very safe progress , which actually results them to be

in a position where they are behind some of the more aggressive

market players like ICICI

4. In India the rural market and middle class society still dont

have faith in private bank and their genuinity

The kotak mahindra bank is competing with private companies which are

spending huge amounts on marketing, so to maintain a competitive edge

with these companies in terms of acquiring market shares would be a

tough task.

90
 RESEARCH OBECTIVE

Title of the Study:

Financial Products in Kotak Mahindra Bank

Objective:

To understand the Indian Banking System.

To understand the retail trends followed by the modern retail

Banks. To understand the banking relationship of organizations

with their existing banker.

Product Innovation for them.

To generate the business by generating leads.

Type of research:

Research design Descriptive

Scope of study:

My study will help to understanding the Indian banking system as

well as to identify the existing bank Market reputation

91
 My study will provide information about general practices adopted

by the bank in order to carry their customers in the area of retail

banking business.

CONCLUSION AND RECOMMENDATION

The customer of Kotak Mahindra Bank is highly satisfy with the

product and service of the bank means bank have done good work

on that.

The very first thing that Kotak Mahindra Bank required to increase

the infrastructure means bank need to open new branches across

the india.

Now Kotak Mahindra Bank is well known brand in the financial

market so bank have to enter in the mass banking

Apart from premier banking Kotak Mahindra Bank have to

increase the reach and come on lower segment.

Urban market is saturated now bank have to focus on to the rural

market

92
 BIBLIOGRAPHY

In order to obtain more information regarding the present study and to

substantiate it with theoretical proof, the following references were made

Websites visited:

www.kotak.com

www.rbi.org.in

www.google.com

www.icicibank.com

www.hewittasia.com

MAGAZINES:

BUSINESS TODAY

93