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Banking Requirements for Online Companies and Other Companies


Mr. Manas Mehra
Chief Manager,
Commercial Banking, New Delhi
Dr.Shailender Singh,
Associate Professor
Amity International Business School - Noida
Mr. Raja Gupta,
MBA International Business,
Amity University Uttar Pradesh



Banking Requirements for Online Companies

and Other Companies.
Raja Gupta
MBA-IB (2012-2014)
Roll No. : A1802012192



Mr. Manas Mehra

Dr. Shailender Singh

Chief Manager,

Associate Professor,

Commercial Banking,

Amity International BusinessSchool, AUUP

Kotak Mahindra Bank , New Delhi



This is to certify that Mr. RAJA GUPTA, a student of Post Graduate Degree in
MBA ( FINANCE), Amity International Business School, Noida has worked in
the KOTAK MAHINDRA BANK LTD, under the able guidance and
supervision of Mr.MANAS MEHRA, designation CHIEF MANAGER,
The period for which he/ she was on training was for 8 weeks, starting from 6 th
MAY to 6th JULY. This Summer Internship report has the requisite standard for
the partial fulfillment the Post Graduate Degree in International Business. To
the best of our knowledge no part of this report has been reproduced from any
other report and the contents are based on original research.



(Faculty Guide)



I express my sincere gratitude to my industry guide






Relationship Manager- Commercial Banking for his able guidance,

continuous support and co-operation throughout my project, without which the

present work would not have been possible.
I would also like to thank the entire team of Kotak Mahindra Bank

, for the constant

support and help in the successful completion of my project.

Also, I am thankful to my faculty guide

Dr.Shailender Singh

continued guidance and invaluable encouragement.

of my institute, for her

Chapter No. Subject

Executive Summary
Research Methodology
Primary Objective
Research Design


Critical Review of Literarure
Industry Profile
4.1 Company Profile
4.2 Swot Analysis


5.1 Data Collection

5.2 Primary Data
5.3 Secondary Data




Page No

Finding And Analysis

9.1 b- Graphs
Case Study





This Project report has been prepared for the Commercial Banking as to see the
need and wants of the Companies by the bank, As the company starts the
company has to deal with the bank, so our major target was to approach the
companies consult to the finance team and fix the meeting with Chief Manager.
Each and every company requires a number of banking transaction and also
need other financial services. For catering the services to their financial as well
as other monitory needs banks have a separate working department known as
Commercial Banking.
Second Part of my Project was to approach the new companies By finding them
from Ministry Of Corporate Affairs (NAC 21),and to Consult their head team
by fixing the meeting with our Chief manager. As the companys total
transaction, Inward outward remittance, how much lesser conversion margins
the bank can provide to them.
My main Project was to approach as much companies I can , n prepare the
question year and collect the data according to the question ,and analyze the
situation and condition of the companies that what kind of better services they
require from the bank.
Banks are involve in two types of banking
1. Retail Banking
2. Commercial Banking
The topic of my internship was Commercial banking. It is done under the name
of Transaction Banking Group (TBG)


My Objective was to Study the need of financial companies required by
banking sector for providing financial services to the industrial sector.and to
know their services which they are using from banks, and to understand their
current banking arrangement.
The Kotak Mahindra Group:
Kotak Mahindra is one of India's leading financial organizations, offering a
wide range of financial services 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 diverse financial needs of
individuals and corporate.
The group has a net worth of over Rs. 6,799 cr and has a distribution network of
branches, franchisees, representative offices and satellite offices across cities
and towns in India and offices in New York, London, San Francisco, Dubai,
Mauritius and Singapore. The Group services around 6.4 million customer
As far as commercial banking is concerned it is the significant segment of a
bank to handle the company accounts, trade, export, import, foreign exchange,
corporate finance, corporate lending etc. Banks provide different services to the
corporate entities to make their banking functions easy and feasible.
The objective of an internship is to get the insight knowledge of the topic you
have selected for the internship and to learn corporate culture of that

company with the development of common skills of the entire corporate world.

I had decided to learn how to talk and persuade a person, designated on a

managerial profile in a company. In the other words we can say how to open the
doors of good prospects for the company. It is very necessary to know the
mechanism of building good corporate relation between the company and the
clients. As per the nature of work in this domain of banking it is specially
focused to retain the client.


1. Primary and Secondary Objective

Primary Data- Question Year ,Distribution of 70 Question year Out of
which 50 where properly accepted and filled by the by the company.
Secondary Data- Collected from Net, From my site supervisor and the
Faculty guide
2. Sampling- As I did the sampling for the companies of the Gurgaon
Region and I have covered the 0.5% of the total population .
I covered the top Indian companies and Multinational companies.
Time period was 6th May to 6th July

Research Design
This banking requirements Sample design was prepared According to the
questionnaire filled by the Company, and to analyse the data according to their
requirements, research design is mainly prepared to identify and to analyse the
situation of the research that we are conducting,
The research design should be very much clear ase we are going to analyse
from our research design and the sample design which we have prepared.


Time constraint: The duration of the project limited the in-depth understanding of










Company.according to the time duration I have to cover the at most companies but
due to lack of time I was able to complete few companies.

Limited scope: The project was carried out within the scope of the company. The
predetermined guidelines given by the corporate office should be strictly adhered to.
The efficacy of the methods followed is still debated in the academic arena.
As the questioner was prepared but the finding was not up to the mark as manyof the
companies where not disclosing their financial matter.

Technicality: The proposals put forward by the technical department of the Banks, to
look forward for the Companies according to their needs, so that the Banks could
launch the new products according to their Organisation


Review of Literature


The banking industry has historically been more heavily regulated than other
industries. Starting in the1980s, a large number of economies, including both
developed and developing countries, carried out extensive liberalization
processes, particularly aimed at their banking and financial sectors. A primary
goal of the deregulation process is to improve efficiency through the creation of
a more competitive operational environment. The enhancement of market forces
introduced by deregulation is supposed to lead to efficiency and productivity
improvements as banks strive to maintain their market shares and keep
profitability. However, the conventional wisdom is not always validated by
empirical studies (Berger and Humprey, 1997).
3.1. International evidence on the efficiency and productivity effect of
deregulation The majority of studies on the effect of deregulation on the
efficiency and productivity of banks have been applied to the U.S banking
industry. These studies generally found little or negative cost productivity
change (Berger and Humphrey; 1992; Bauer et al., 1993; Humphrey, 1993;
Berger and Mester, 1997; Berger and Mester, 2003), but positive profit
productivity change or technical productivity improvement (Humphrey and
Pulley, 1997; Berger and Mester, 1997; Alam, 2001; Mukherjee et al., 2001,
Berger and Mester, 2003). As far as studies outside the U.S are concerned, the
results of deregulation were sometimes found to be favourable to productivity
growth, as in Norway (Berg et al., 1992), Australia (Avkiran, 2000, Sturm and
Williams, 2004), Turkey (Isik and Hassan, 2003), Thailand (Leightner and
Lovell, 1998), and Korea (Gilbert and Wilson, 1998). Examples of mixed or
unfavourable results of deregulation were found in Portugal (Mendes and
Rebelo, 1999; Canhoto and Dermine, 2003), Spain (Grifell-Tatje and Lovell,
1996; Lozano, 1998; Kumbhakar et al., 2001). Controversy is not only
concerned with whether deregulation stimulates efficiency improvement and
productivity growth, but also about the sources of productivity growth. While
some studies attribute the growth of productivity to technological progress
(Alam, 2001; Mukherjee et al., 2001; Berger and Mester, 1997; Avkiran, 2000;
Canhoto and Dermine, 2003; Kumbhakar et al., 2001; Sturm and Williams,
2004) others are in favour of efficiency improvement (Berg et al., 1992; Gilbert
and Wilson, 1998; Isik and Hassan, 2003). It is generally found that
deregulation has different impacts on different ownerships within a nation.

While Sturm and Williams (2004) reported similar TFP change of foreign and
domestic banks in Australia during the post-deregulation period (1988-2001),
Isik and Hassan (2003) indicated that in Turkey private banks, especially
foreign banks, showed the great efficiency improvement form the more liberal
and competitive environment than state-owned banks during 1981-1990. A
more impressive increase of TFP growth of foreign banks compared to the
domestic group was also captured by Leightner and Lovell (1998) in the study
of Thai banks for
Although there is a concern about the adverse effect of deregulation on the risktaking behaviour of market participants, the connection between deregulation
and risk-taking has not been systematically jointly investigated in literature. A
few related studies did warn that deregulation has the potential to deteriorate
banks risk position. Demirguc Kunt and Detragiache (1999) reported that
financial liberalization exerts an independent negative effect on the stability of
the banking based on a study covering 53 countries, Claessens et al., (2001)
also found the evidences that domestic banks were forced to take on less
creditworthy customers with foreign entry based on a 80-country sample.
Moreover, experiences coming from Columbia (Barajas et al., 2000) and
Philippines (Unite and Sullivan, 2003) reported result consistent with Claessens
et al., (2001). The policy implication is that if deregulation induces more risk
taking, it could harm the process of economic growth in the medium- and longrun. There is a need for governments to carefully design the entire deregulation
process and put a strong institutional setting in place to curb the possible system
negative effect of deregulation on the stability of the banking system (Demirguc
Kunt and Detragiache, 1999).


Transaction Banking Group

The TBG offers cash, liquidity, trade and supply chain solutions to clients who
are spread across all the segments/Channels Corporate banking, financial
institutions, emerging corporate group, business banking, retail liabilities and
even agriculture to optimize their working capital cycle.

Transaction banking is divided in three parts Cash Management Solutions

Trade finance solutions
Security Services

Cash Management Solutions

CMS has three functions

1- Current Account Solutions
2- Receivable Management Solutions
3- Payable Management Solutions

Trade Finance Solutions


Trade Finance Services include

1- Import Solutions
2- Export Solutions
3- Domestic Trade Finance Solutions
4- Advisory Services on complex trade transactions

Security Services

It consist
1- Custody and Settlement Services
2- PCM Services
3- Fund Accounting

Commercial Banking has been very profitable for the banks because here one
client shares a significant portion of profit. Separate operations and utmost care
of this function have proved an efficient tool to satisfy all the banking and
financial need of the companies. Banks are specially focusing on building the
good corporate relations with the existing clients to retain the client as well as
the business provided by them.
Commercial Banking operations are very important and should be manage with
utmost care because any irregularity, ignorance or mistake can result in a big
loss for the bank. The reason of this big loss is that companies deposit and
invest huge amount of money in the banks that would be probably equals to
hundreds of retail customers. It is very important to retain rather than create the
customer. On the basis of my knowledge and experience, i recommend skilled


manpower, good corporate relations and utmost good faith to handle

commercial banking.

State-owned banks

The Indian banking sector is dominated by 28 state-owned banks which operate

through a network of about 50,000 branches and 13,000 ATMs. The State Bank
of India (SBI) in the largest bank in the country and along with its seven
associate banks has an asset base of about Rs. 7,000 billion (approximately
US$150 billion). The other large public sector banks are Punjab National Bank,
Canara Bank, Bank of Baroda, Bank of India and IDBI Bank.

The public sector banks have overseas operations with Bank of Baroda topping
the list with 51 branches, subsidiaries, joint ventures and representative offices
outside India, followed by SBI (45 overseas branches/offices) and Bank of
India (26 overseas branches/offices). Indian banks, including private sector
banks, have 171 branches/offices abroad.

SBI is present in 29 countries followed by Bank of Baroda (20 countries) and

Bank of India (14 countries).

Private sector banks India has 29 private sector banks including nine new banks
which were granted licenses after the government liberalized the banking sector.
Some of the well known private sector banks are ICICI Bank, HDFC Bank and
Indusland Bank. Yes Bank is the latest entrant to the private sector banking


In terms of reach the private sector banks with an asset of over Rs 5,700 billion
(about US$124 billion) operate through a network of 6,500 branches and over
7,500 ATMs.
Foreign banks As many as 29 foreign banks originating from 19 countries are
operating in India through a network of 258 branches and about 900 ATMs.
With total assets of more than Rs 2,000 billion ( about 44 billion US dollars)
they are present in 40 centers across 19 Indian states and Union Territories.
Some of the leading international banks that are doing brisk business in India
include Standard Chartered Bank, HSBC Bank, Citibank N.A. and ABNAMRO Bank. In addition, 31 foreign banks (as on September 15, 2006)
belonging to 14 countries were operating in India through their representative

Foreign banks operating in India:

1. ABN-AMRO Bank N.V. (24 branches)

2. Abu Dhabi Commercial Bank Ltd. (2 branches)
3. Arab Bangladesh Bank Ltd. (1 branch)
4. American Express Bank (7 branches)
5. Antwerp Diamond Bank N.V. (1 branch)
6. Bank International Indonesia (1 branch)
7. Bank of America (5 branches)
8. Bank of Bahrain & Kuwait (2 branches)
9. Bank of Nova Scotia (5 branches)


10. Bank of Tokyo-Mitsubishi UFJ Ltd. (3 branches)

11. BNP Paribas (8 branches)
12. Bank of Ceylon (1 branch)
13. Barclays Bank Plc. (1 branch)
14. Calyon Bank (5 branches)
15. Citi Bank N.A. (39 branches)
16. Shinhan Bank (1 branch)
17. Chinatrust Commercial Bank (1 branch)
18. Deutsche Bank (8 branches)
19. DBS Bank ( 2 branches)
20. HSBC Ltd. (45 branches)
21. JP Morgan Chase Bank N.A. (1 branch)
22. Krung Thai Bank Public Co. Ltd. (1 branch)
23. Mizuho Corporate Bank Ltd. (2 branches)
24. Mashreq Bank PSC (2 branches)
25. Oman International Bank SAOG (2 branches)
26. Standard Chartered Bank (81 branches)
27. Sonali Bank (2 branches)
28. Societe Generale (2 branches)


29. State Bank of Mauritius (3 branches) The Netherlands-based ING Group

has taken over the management of the Indian private sector Vysya Bank Ltd. in
October 2002 and is operating as ING Vysya Bank Ltd.

Regional banks

Rural areas in India are served through a network of Regional Rural Banks
(RRBs), urban cooperative banks, rural cooperative credit institutions and local
area banks. Many of these banks are not doing well financially and the
government is currently engaged in restructuring and consolidating them. Local
area banks were of recent origin and as on March 31, 2006 four such banks
were operating in the country.

Financial institutions India has seven major state-owned financial institutions

which include Industrial Development Bank of India (IDBI), Industrial and
Financial Corporation of India (IFCI), Tourism Finance Corporation of India
(TFCI), Exim Bank, Small Industries Development

Bank of India (SIDBI), National Bank for Agriculture and Rural Development
(NABARD) and National Housing Bank (NHB). These institutions provide
term loans and arrange refinance. There are also specialised institutions like the
Power Finance Corporation (PFC), Indian Railway Finance Corporation
(IRFC), Infrastructure Development Finance Company (IDFC) and state-level
financial corporations. Non banking financial companies.

India also has a vibrant NBFC sector comprising 13,000 NBFCs that are
registered with the RBI and fund activities like equipment leasing, hire
purchase etc. Out of the total about 450 NBFCs are allowed by the RBI to
collect funds from the public. Large NBFCs have an asset base of about Rs
3,000 billion (about 65 billion US dollars).


Recent developments:
State Bank of India has acquired 76 per cent stake in Giro Commercial Bank, a
Kenyan bank for US$7 million.
Bank of Baroda is planning to acquire a bank in Africa to consolidate its
presence in the continent.
Canara Bank is helping Chinese banks recover their huge non-performing assets
ICICI bank is in the process of taking over Sangli Bank, a private sector bank
based in Maharashtra.

The RBI has recently allowed the Commonwealth Bank of Australia, Banche
Popolari unite S.c.r.l. (based in Italy), Vneshtorgbank (Russian trade bank),
Promsvyazbank (Russian commercial bank), Banca Popolare di Vicenza (Italian
bank), Monte Dei Paschi Di Siena (Italian bank) and Zurcher Kantonalbank
(Swiss bank) to set up representative offices in India.


Although the banking companies are registered under the Companies Act, 1956
they are regulated by the RBI which grants licence to companies for operating a
bank, opening branches and off site ATMs, fixes statutory liquidity ratio (SLR)
and cash reserve ratio (CRR), and lays down other conditions for day-to-day
operations. The RBI permission is also needed for board level appointments in
With regard to interest rates, individual banks are free to fix rates with the
exception of savings bank rate which is decided by the RBI. The individual
banks are free to fix lending rates...


Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it
should be able to meet new challenges posed by the technology and any other
external and internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact, Indian
banking system has reached even to the remote corners of the country. This is
one of the main reasons of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
Not long ago, an account holder had to wait for hours at the bank counters for
getting a draft or for withdrawing his own money. Today, he has a choice. Gone
are days when the most efficient bank transferred money from one branch to
other in two days. Now it is simple as instant messaging or dials a pizza. Money
has become the order of the day.
The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector

New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase
II and Phase III.

Growth of Banking in India

The growth in the Indian Banking Industry has been more qualitative than
quantitative and it is expected to remain the same in the coming years. Based on
the projections made in the "India Vision 2020" prepared by the Planning
Commission and the Draft 10th Plan, the report forecasts that the pace of
expansion in the balance-sheets of banks is likely to decelerate. The total assets
of all scheduled commercial banks by end-March 2010 is estimated at Rs
40,90,000 crores. That will comprise about 65 per cent of GDP at current
market prices as compared to 67 per cent in 2002-03. Bank assets are expected
to grow at an annual composite rate of 13.4 per cent during the rest of the
decade as against the growth rate of 16.7 per cent that existed between 1994-95
and 2002-03. It is expected that there will be large additions to the capital base
and reserves on the liability side.
The Indian Banking Industry can be categorized into non-scheduled banks and
scheduled banks. Scheduled banks constitute of commercial banks and cooperative banks. There are about 67,000 branches of Scheduled banks spread
across India. As far as the present scenario is concerned the Banking Industry in
India is going through a transitional phase.
The Public Sector Banks(PSBs), which are the base of the Banking sector in
India account for more than 78 per cent of the total banking industry assets.
Unfortunately they are burdened with excessive Non Performing assets (NPAs),
massive manpower and lack of modern technology. On the other hand the
Private Sector Banks are making tremendous progress. They are leaders in
Internet banking, mobile banking, phone banking, ATMs. As far as foreign
banks are concerned they are likely to succeed in the Indian Banking Industry.


In the Indian Banking Industry some of the Private Sector Banks operating are
IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd,
Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab
National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank
among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express
Bank Ltd, Citibank are some of the foreign banks operating in the Indian
Banking Industry.

Our Corporate Identity


Kotak Mahindra Capital Company Ltd.

Kotak Securities Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Prime Ltd.


Kotak Mahindra Asset Management Ltd &

Kotak Mahindra Trustee Company Ltd.
Kotak Mahindra Investments Ltd.
International Subsidiaries
Kotak Mahindra Securities Ltd.
Kotak Mahindra Trusteeship Services Ltd.
Kotak Forex Brokerage Ltd.

As one of the leading players in financial solutions, Kotak Mahindra has a

network across 300 cities in India employing around 9600 people. The
institution offers services in many forms such as stock broking, mutual funds,
life insurance, investment banking and caters to individuals and corporates. The
net worth of the group is Rs. 3100 crore and it serves around 2.2 million
customers. It also has offices in London, New york, Dubai and Mauritius. The
areas in which Kotak Mahindra provides products & services are:

Banking & Savings

Banking Accounts
NRI Services
Convenience Banking


Investments & Insurance

Life Insurance
Mutual Funds
Share Trading
Structured Products
Estate Planning

Loans & Borrowings

Car Finance
Home Loans
Loans Against Property
Personal Loans

Corporate & Institutional

Corporate Finance
Investment Banking
Institutional Equities



The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial organizations, offering a
wide range of financial services 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 diverse financial needs of
individuals and corporate.
The group has a net worth of over Rs. 6,799 cr and has a distribution network of
branches, franchisees, representative offices and satellite offices across cities
and towns in India and offices in New York, London, San Francisco, Dubai,
Mauritius and Singapore. The Group services around 6.4 million customer

Group Structure


Product and Services

Funded Products
Working Capital Structured Products
Trade Finance
Exports - Imports Bank Guarantee
Treasury Products
Foreign Exchange Money Market Benchmark PLR


Investment Products
Term Deposits, Mutual Funds, Bancassurance
Current Account
Fixed Income Products
Sales & Distribution Research Case Studies
Transaction Banking
Custody Services
Retail Assets

Corporate Current Account

Key Features
Minimum Account Balance required is Nil
2 Way Sweep for liquidity and higher
Free-up country cheque collection for 13
Personalised Cheque book


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.
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.

All attestations to be done by Company Secretary/2 Directors/ existing
banker/ registered Chartered Accountant.
Latest (not more than 3 months old) list of all Directors with their Addresses.
Certified "True and Updated" Copy of Certificate of Incorporation.
Certified "True and Updated" Copy of Certificate of Commencement of
Business (In case of Public Ltd. Co.).
Certified "True and Updated" Copy of Memorandum and Articles of
Extract of Board Resolution, signed by 2 Directors or Company Secretary with
mode of operation & list of authorised signatories with designated powers.
Existing Banker's Verification required, if the Certifying director and authorised
signatory is same (In case of Pvt. Ltd. Co.).
Proof of Form 32 filed along with ROC acknowledgement/Latest printed
Balance Sheet giving the names of existing directors, in case of change of


Transaction Banking

Kotak Mahindra Bank's Transaction Banking is the process of optimization 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 customized MIS. Transaction Banking
eliminates the inherent delays of the traditional funds transfer mechanism,
enhancing liquidity and ensuring optimum planning and utilization of funds.

Cash Management Services

The Banks Cash Management Services include the following basic components

Collection or Receivables Management

Payment or Payables Management
Liquidity and Investment Management Services

Features & Benefits

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 cherubs sooner, and also positively

impacting the Balance Sheet and Financial Ratios. 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.

Control Benefits Cash Management Services allows you to maintain better

control over the various Banking and Treasury related activities, improving turn
around time and faster reconciliation. This product also takes care of fraud
prevention, security and other controls.

We collect funds on your behalf from your debtors, such as Retail Investors,
Corporate, 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'.


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 hassels 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:

Bulk Demand Draft

Remote Payout
Cheque Writing

Corporate Trade Finance


Key Features


Tailor made solutions to suit all your

export needs


Experienced trade finance team that


focuses on client requirements
Leverage our global network of
correspondent banks

Bills &

Kotak Mahindra Bank provides a wide range of export related services,

assisting the growth of your organization into the overseas market. Our
solutions include:


Pre-Shipment Credit

We offer pre-shi pment credit to exporters by way of packing credit, enabling

them to finance operations like purchase/import of raw materials or processing
and packing of export goods. Exporters can avail of this pre-shipment credit
either in rupees or foreign currency.

Post-Shipment Credit

We offer post-shipment credit to exporters, helping them finance export sales

receivable for the time lag between shipment of goods and date of realization of
export proceeds. Exporters can avail of the following services:
Negotiation/ payment/ acceptance of export documents under letter of credit
Purchase/ discount of export documents under confirmed orders/export
contracts etc.
Advances against export bills sent on collection basis
Advances against exports on consignment basis
Advances against undrawn balance on exports
Advances against approved deemed exports
Exporters can avail of this post-shipment credit either in rupees or foreign


Bills & Collection

We have a strong, experienced trade finance team that focuses on client traderelated requirements, whether domestic or international. This team advises and
guides clients on documentation and transactions ensuring:
Quick turnaround times through smooth document processing
Faster payments through constant follow-ups with correspondent banks for
timely recovery of funds
Cost effectiveness
Better reach
Excellent trade support

Arrangement of credit reports of overseas parties

Specialised advice on international trade related issues as well as technical
issues such as ECM requirements, RBI reporting, new circulars and
international developments
We have developed a global network of correspondent banks that enables us to
handle large volume collection portfolios. We offer world-class facilities for
handling collections related to international trade.
We also handle documents where proceeds have been received by the exporter
on an advance payment basis and the actual shipment takes place
later. In such cases, the documents need to be accompanied with an Foreign
Inward Remittance Certificate (FIRC) as proof of receipt of the advance


Inward Remittances

We facilitate Foreign Inward Remittance (foreign exchange received by a

person in India through banking channels) and offer convenient modes of
operations for quick and easy disbursement.
The facility is extended through arrangements with reputed, correspondent
banks located in most countries around the world.


Key Features
Tailor made solutions to suit all your
import needs
Experienced trade finance team that
focuses on client requirements

Letter of Credit
Bills &

Leverage our global network of

correspondent banks

Kotak Mahindra Bank provides a comprehensive range of import related

services, helping you cover your trading risks.

Letter of Credit


We offer our customers import financing services through Letters of Credit

(L/C) which are well accepted globally and supported by a strong trade finance
We have correspondent banking arrangements with a large number of banks
worldwide for this service. Our trade team is equipped to structure solutions for
a variety of purchase requirements, ranging from simple L/Cs to revolving
L/Cs, bid bonds, Standby L/Cs and other performance guarantees.

Bills & Collection

We have a strong, experienced trade finance team that focuses on client traderelated requirements, whether domestic or international. This team advises and
guides clients on documentation and transactions ensuring:
Quick turnaround times through smooth document processing
Faster payments through constant follow-ups with correspondent banks for
timely recovery of funds

Cost effectiveness
Better reach
Excellent trade support

Outward Remittances
Our services in this area include:
Payment of direct Import Bills: Processing and remittances for Import Bills
directly received by importers in India.


Advance payment towards imports: Processing and remittances towards

advance payment for imports.
Other outward remittances like dividend payouts, ECB payments, royalty,
shipping, etc.

Bank Guarantee
Key Features
Experienced trade finance team that focuses on client
Reduces your risks

We offer a wide spectrum of guarantees that address varying client

requirements and risk profiles. These include performance and financial
guarantees, bid bonds, tender and customs guarantees, etc.

Domestic Trade


Key Features

Bills Discounting

Extensive range of trade-related services Invoice

Experienced trade finance team that
focuses on client requirements
Purchase Order
Tailor made solutions to suit all your
trading needs

Bill Discounting

Our experienced and dedicated trade finance team is focused on structuring bill
discounting products to meet customer needs be it short term or medium term

In fact, our services go beyond plain bill discounting to encompass a complete

range of supply chain management solutions. We aim at increasing the
efficiency of the entire cycle, ensuring that transactions are executed speedily
and effectively. We will soon offer integrated supply chain services on an
electronic platform.

Invoice Discounting

Invoice discounting entails discounting an accepted invoice bill for the sale of
goods to provide working capital. We offer our clients the dual advantage of
simple documentation and absence of collateral requirements. Finance is

extended either by crediting the current account of the supplier or by issuing a

pay order.

Purchase Order Financing

Purchase order financing is an innovative program where we offer flexible

finance to supply chain partners of corporates. This involves discounting a
contract/ purchase order to help finance the manufacturing cycle for goods
ordered by the corporate. This service is particularly useful for vendors with
seasonal increases in working capital requirements
Service extended to key vendors identified by the corporate
Pre-shipment loan against Purchase Order from corporate
Corporate pays the bank directly for all supplies by the vendor
Maximum tenure is currently 45 days

Corporate Treasury Products

Foreign Exchange


Key Features
A state-of-the-art dealing room

Forex Rates

Wide rage of products and services

We have a state-of-the-art dealing room situated at Nariman Point, Mumbai.

The dealing room handles inter-bank transactions and corporate foreign
exchange flows generated by the various branches.

Spot foreign exchange transactions (for value up to two business days)
Forward foreign exchange transactions (for value greater than two business
Inward/outward remittances
Derivatives such as Options, Currency Swaps, etc.

Active dealings in the inter-bank market for major currencies, spot and forwards
Quick and competitive dealing in prices in major currencies
Customised solutions for specific client exposures


Trading recommendations based on technical analysis

Regular fundamental analysis
Established correspondent banking relationships
Research update

Money Market

Key Features
We cater to the treasury requirements of clients across the
Inter-Bank, Co-operative bank, Corporate, Pension Fund
and Trust sectors.
We also offer the entire spectrum of services involved in the
origination and placement of corporate debt.

Our Money Market and Fixed Income Desk is an active player in the Rupee
markets and caters to the treasury requirements of clients across the Inter-Bank,
Co-operative bank, Corporate, Pension Fund and Trust sectors.
With an active sales force in Mumbai, Delhi, Kolkata, Chennai, Bangalore and
Ahmedabad we are equipped to meet client requirements across the country. We
also offer the entire spectrum of services involved in the origination and
placement of corporate debt.

Fixed Income Solutions


Short Term Needs: Purchase/ Sale of Treasury Bills, Commercial Paper,

Certificate of Deposits

Long Term Needs:

Purchase/ Sale of Government and Corporate Debt

Distribution Needs:
Placement of Debt Issues

Depository Needs:
Constituent SGL Facility

Retail Needs:
Purchase/Sale of instruments in smaller lots is also offered.

Derivative Solutions
Hedging Needs: Market Maker in the Rupee interest Rate swap market in tenors
upto 5 years


Corporate Investments

Meet your financial goals

At Kotak Mahindra Bank, we recognize that financial needs vary. We have
years of experience in helping organizations put together an investment
portfolio that works best for them.

Term Deposits
Mutual Funds


Corporate Investment Products

Term Deposits

Key Features
Safe and stress-free way to make your money


Loan facility to the extent of 85% of principal

on a deposit term
Attractive interest rates

Investing your money in a Term Deposit at Kotak Mahindra is a safe, stress-free

way to make it grow. A host of features make Kotak Mahindra Term Deposits
an excellent investment opportunity:
Automatic rollover:
You can choose to roll over only the principal amount that you deposit or
principal plus interest earned (i.e. re-invest the interest). Automatic rollover will
be for the same period, at an interest rate applicable on the maturity date
When you reinvest the interest, you get compound interest on the total amount,
i.e. rollover of principal plus interest, at the end of the period (quarter or halfyearly)
You can specify, on or before the maturity date, changes in deposit tenure,
maturity instructions, payment instructions, principal amount and rollover mode
(from principal to principal plus interest or vice versa)


Loan facility is available to the extent of 85% of principal on a deposit term,

with a period of minimum of 1 year (as per Kotak Mahindra Bank's conditions)

Mutual Funds

Key Features
Assistance at every step of the investment process
An experienced research team to analyse and research the
Mutual Funds available in the market
Portfolio assistance

We work closely with our clients to help them establish a robust framework for
treasury solutions and laying down parameters for investment products within
the risk/return parameters laid down by the each treasury.

We offer this service to all our customers including Banks, Financial

Institutions, Insurance Companies, Large & Mid-size Corporates. Investment
products include Mutual Funds, Bank Certificates of deposits, Bonds &
debentures, Government securities amongst others.
Identifying investment opportunities involves working closely with our clients
to identify their goals and to analyse their investment needs by understanding
their risk profiles, liquidity and tax requirements, investment horizons and
expectations of returns.


Our experienced research team analyses and researches the various Mutual
Funds available in the market, helping clients make more informed decisions.
Our recommendations take into account all relevant factors including the
investment philosophy of the Asset Management Company, portfolio quality,
risk-adjusted returns and market insights.

Our range of services includes:

Daily NAV updates

Fund Performance Analysis
Monthly Portfolio Analysis
Client Portfolio Monitoring
Debt / Equity Research
Regular News updates
Client Portfolio Monitoring



Key Features
Entire range of product offerings
Customised solutions & advisory


Relationship banking

At Business Banking Group we look at providing financial solutions to small &

medium size businesses. We have an array of products which cover the working
capital and long term financial needs of a business. We also offer trade finance
products like Letter of Credit and Bank Guarantees

Product Offerings

Business Banking Group caters to the entire trade & financial requirements of
small & medium businesses through comprehensive product offerings. Our
individual exposure ranges from Rs 50.00 Lakhs to Rs 30.00 Crores.

Working Capital
Cash Credit / Overdraft

Working Capital Term Loan

Trade Services
Letter of Credit
Bank Guarantee
Long Term Financial Needs
Term Loan
Loan Against Property
Lease Rent Discounting

Customised Solutions & Advisory Services

We review business requirements based on overall performance and their

expansion plans. The relationship managers and the credit team would focus on
understanding the business model and related industry dynamics with the
customer. Effort is made to understand how the business has grown and what
plans do the promoters have. The strength of the team is in understanding the
needs of the customer and customizing a solution for him. We also add value to
the relationship by offering advisory services and financial restructuring
solutions to our customers.

Relationship Banking


Our dedicated team of Relationship Managers (RMs) located across the country
act as ONE POINT CONTACT for our clients. Our RMs maintains a
continuous interaction with the clients to understand their immediate and future
financial needs.


Kotak Mahindra Bank was awarded Hewitt Best Employers in India 2009
Kotak Mahindra Bank was ranked in the top 5 of companies with Best
Corporate Governance Practices in Asia/Pacific - IR Global Rankings 2009.

Kotak Mahindra Bank and Oracle Siebel won the Best CRM/Applications
Project Award 2009 at the IT Implementation Awards 2009 by The Asian

Kotak Mahindra was adjudged Indias overall the Best Private Banking
Services award by Euro money 2009.

Kotak Credit Cards- Kotak Royal Signatures card is chosen Product of the
Year by Nielsen who surveyed 40,000 consumers.


Kotak Life Insurance plans were rated amongst the best in the industry for a
second year in a row in the annual ULIP Ranking carried out by Outlook

Outlook Money awarded the 1st Rank to Kotak Platinum Advantage Plan in
Type II ULIPs category.

Outlook Money awarded 4th Rank to Kotak Long Life Wealth Plus plans in the
Type I ULIPs category, concluding that Kotak Life has a product portfolio
which delivers what customers want.

Kotak Life Insurance plans were rated amongst the best in the industry for a
second year in a row in the annual ULIP Ranking carried out by Outlook
Kotak Securities- Best Brokerage Firm in India - Asia money, 2008
Kotak Securities- Selected Business Super brand India 2008
Kotak Securities - India Equity House of the Year 2008 award from IFR Asia
Kotak Securities - Best Equity House in India by Finance Asia in 2008
Kotak Securities - Best Equity House in India by Asia money in 2008
Kotak Securities - Best Brokerage and Best Analyst (Sanjeev Prasad) in India
in the Asia money 2008 Brokers Poll
Kotak Investment Banking was awarded the Best Domestic Investment Bank
2008 by Triple A Asset Asian Awards


Kotak Investment Banking was ranked Best Investment Bank in India by

Global Finance in 2008



Our Story

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management
Finance Limited. This company was promoted by Uday Kotak, Sidney A. A.
Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand
Mahindra took a stake in 1986, and that's when the company changed its name
to Kotak Mahindra Finance Limited.


The company was incorporated on 21st November 1985 under the name Kotak
Capital Management Finance Ltd. The Company has been promotedby Mr
Uday S Kotak, Mr S.A.A Pinto and Kotak & Company. The company obtained
the certificate of commencement of business on 11th February

1986 and the Existing promoters were joined by Mr Harish Mahindra and Mr
Anand Mahindra. The company's name was changed on 8th April 1986 to its
present name Kotak Mahindra Finance Ltd.

The Company deals in Bill discounting, leasing and hire purchase, corporate
finance, management of fixed deposit mobilisation, financing against
securities, money market operations, consumer finance, investment banking
and clients' money management.


3,08,770 No. of equity shares subscribed for by the promoters, directors,

3,41,230 No. of equity shares allotted as rights as on 28.3.89. 19,50,000 shares
issued as bonus (6,50,000 shares in prop. 1:1 as on 29.7.89 and 13,00,000
shares in prop. 1:1 as on 27.2.91).


An application was made to SEBI for approval for setting up a Mutual Fund
trust and an asset management company. The newly set up Corporate
Advisory Services Group received several mandates for advice on mergers and
acquisitions and re-structuring.
The Company's newly established Foreign Exchange Risk Management Service
carters to the vast potential demand for price risk management.
The Company established itself as a major leasing and hire-purchase company
and as a source of finance for purchasers of automobiles.



In January, the Company offered and allotted 15,50,000 - 14% secured partly
convertible debentures of Rs 90 each for a total value of Rs 13.95 crores in the
following manner:
(i) 2,00,000 debentures to promoters, directors, etc.
(ii) 77,500 debentures to employees (including working directors)/workers on
preferential basis
(iii)12,72,500 debentures to Indian public through prospectus.

Additional 30,000 debentures to promoters, directors, etc., 9,500 debentures to

employees and 1, 93,000 debentures to Indian public were allotted to retain
As per the terms of debenture issue, a portion of Rs 45 of each debenture of Rs
90 was to be converted into 1 equity share of Rs 10 each at a premium of Rs 35
per share as on the date of allotment of the debentures. Accordingly 17,82,500
No. of equity shares allotted as on 25th February, 1992, being the date of
allotment of the debentures.
The non-convertible portion of Rs 45 of each debenture would be redeemed at
par in three equal instalments of Rs 15, Rs 15 and Rs 15 at the end of the 7th,
8th and 9th year respectively from the date of allotment of the debentures.
In April, the Company has raised Rs. 18 crores by issue of Commercial Paper
which has been awarded P1 + rating by Credit Rating and

Information Services of India limited (CRISIL) indicating highest standards of




During February, the Company issued 69,82,500 Rights equity shares of Rs 10

each at a premium of Rs 15 per share in proportion 1:1 (all were taken-up).
Additional 13,950 shares were allotted to those who had applied for additional
The Company issued through a Prospectus 44,00,000 No. of equity shares of
Rs 10 each for cash at a premium of Rs 140 per share of which the following
were reserved for allotment

1,30,000 shares to promoters, directors, their relatives etc.


25,000 shares to Foreign/Indian Financial Institutions (all were taken

up). Of the remaining 50,000 shares reserved for allotment on a
preferential basis to employees (only 34,600 shares taken up).
Another 5,55,000 shares to

NRIs were reserved on non-repatriation basis (all were taken up).

Balance 36,40,000 shares, along with 15,400 shares not taken up by

employees', were offered for public subscription.
At the 8th Annual General Meeting held on 28th September the Company has
reserved 61,22,000 No. of equity shares of Rs 10 each for cash to be
allotted at such issue price as may be decided by the board to Foreign
Institutional Investors and/or, Foreign and/or Indian Pension and/or Mutual
and/or other Funds and/or Institutions, Banks, Companies, Bodies and/or
individuals and/or Groups of Individuals.

The Company's newly set up Corporate Advisory Services Group received

several mandates for advice on mergers and acquisitions and re-structuring and
some have already been executed with success.


The Company entered into a Memorandum of Understanding with KB

Currency Advisors Inc. USA to market their Foreign Exchange Fund
Management Programme. 183,65,500 Rights equity shares issued in prop. 1:1.
11,800 No. of equity shares forfeited.

The Company has received the approval of Securities and Exchange Board of
India (SEBI) for setting up a Mutual Fund.


The Company issued 4,00,000 - 17% Secured Redeemable Non-convertible

Debenture of Rs 2500 each including 96000 - 16% NCDs reserved for
NRIs/URB (only 9510 taken-up). Unsubscribed portion of 90 debentures
issued to the public. These are redeemable at par on 7.3.2001 with an option
for early redemption up to a maximum of 5% of the issue amount every year.

The Company entered into a joint venture agreement with Ford Credit
International Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA.
It was proposed to finance all non Ford Passenger cars.
Kotak Mahindra Capital company became a subsidiary of the Company.

The Company's operations were affected by the liquidity crunch, scarcity of
resources, sluggishness in the capital markets and the overall deceleration of
economic growth.


The Company has entered into a MOU with the Chubb Corporation, New
Jersey, U.S.A., one of the largest American Insurance firms, to develop a Joint
Venture dedicated to the conduct of causality and property insurance business in

The Company has invested a sum of about Rs 200 lacs in Matrix Information
Services private Ltd. (Matrix), a company formed for providing comprehensive
value added information to business and general users. Matrix is a wholly
owned subsidiary of the company.

The Company has divested its entire holding of 20,00,070 No. of equity shares
of Rs 10 each of Kotak Mahindra Securities Ltd. (KMSL) and 20,00,000
ordinary shares of US $ 1 each of Kotak Mahindra International Ltd.

Hamko Financial Services Ltd., Kotak Mahindra Securities Ltd., provides of

broking services to institutional and corporate clients, Kotak, Mahindra Asset
Management Company, Kotak Mahindra International Ltd., an offshore
company and Kotak Mahindra (UK) Ltd., are all subsidiaries of the Company.
The Company's public issue of 400000 16-17% Secured Redeemable NonConvertible Debentures of Rs.2500 each for cash at par aggregating Rs.100 cr
in January.


In recognition of the Company's prudent funds management, CRISIL has

assigned a rating of AA+ to the Company's public issue of Non-Convertible
Debentures and P1+ for all short term borrowings upto Rs.35000 lacs.

Kotak Mahindra Finance Ltd., has decided to venture into health insurance

Kotak Mahindra Finance has launched a new consumer finance product called
Kotak Mahindra K-Value.

Hamko is a 100 per cent subsidiary of KMFL and investment in it was

structured to avoid limitations of Section 372 under the Companies Act.

The company has diversified into various activities for which it has set up
subsidiaries including broking, capital market activities, auto finance, etc.


Kotak Mahindra Asset Management Company Limited (KMAMCL) launched

its mutual fund schemes in December.

The Company it would launch its mutual fund with two schemes -1- KGilt
2- Unit Scheme and K30 Unit Scheme.
Kotak Mahindra Finance, is a joint venture with Goldman Sachs.


The `FAA' (pronounced `F double A') rating assigned to the fixed deposit
programme of Ford Credit Kotak Mahindra (FCKM) has been reaffirmed.

With the allotment to the Company of 50,000 equity shares of Rs. 10 each by
Kotak Mahindra Trustee Company Limited (KMTCL) on 12th May.


Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation of the US have
decided to call off their joint venture for entering the general insurance
business in India.
The Company has decided to set up a venture capital fund with an initial
corpus of Rs. 100 crore.

KMFL has set up a new asset reconstruction division to offer recovery

management services to players in the financial services industry.

The Company Issue of 9,182,500 No. of Equity Shares of Rs. 10/- each for
cash at a premium of Rs. 90/- per share aggregating Rs. 918,250,000 to the
Equity Shareholders of the Company on Rights basis in the ratio of one equity
share for every our equity shares held on 15th February.

Mr. K.K. Sheth has resigned effective from May 8.

Kotak Securities an affiliate of Kotak Mahindra Finance Ltd., has launched

electronic broking services for retail investors.


Kotak Mahindra Finance is in talks with foreign insurers for a joint venture in
the life insurance business.

The Company has proposed to start-up capital of Rs 150 crore in its life
insurance joint venture with Old Mutual, the UK based financial services

The Company proposes to make the necessary applications to the RBI and the
Insurance Regulatory and Development Authority for entering the life
insurance business.

OM Kotak Mahindra Life Insurance Company, the recently formed joint

venture company of Kotak Mahindra Financeand Old Mutual Plc has filed

its application for approval of life insurance license on 1st September.

Kotak Mahindra Finance Ltd has been assigned Ind AAA rating (indicating
highest credit quality) for its Rs.510 million medium term borrowing
Fitch India has assigned a rating of Ind AAA to the Rs 51-crore medium term
borrowing program of Kotak Mahindra Finnance Ltd for high credit quality
and negligible risk factor.



The Company recommended a swap ratio of 25 shares of KMFL for every

share of Pannier Tradings which has a 75 per cent equity stake in Kotak

The Bharath Petroleum Corporation Ltd (BPCL) has decided to part ways with
Kotak Mahindra, one of the leading domestic financial services company, in its
convenient store venture In & Out.


KMFL's business has seen a fast growth with the total disbursement of
commercial vehicle loan of the company in the last fiscal was tuned to Rs.

RBI has given in-principle approval to Kotak Mahindra Finance Ltd to convert
itself into a bank, thereby becoming the first ever non-banking finance
company converted into a bank.

Mr Uday Kotak says, there won't be any fish capital infusion in the bank in the
near future.

KMFL informed BSE the FITCH ratings assigned:

Fixed Deposit Programme - Ind AAA
Non-Convertible Debenture - Ind AAA


Mr.Ajay Sondhi has been appointed as the Additional Director of Kotak

Mahindra Finance Ltd.
Kotal Mahindra Finance Company has shortlisted i-flex solutions
'Flexicube' and 'Infosys', 'Finnacle' for its core banking solutions.
KMFL has raised 76.22cr by selling securitised commercial vehicle loans to

CRISIL has assigned 'AAA(SO)' rating for Rs.83cr securitization Programme

of Kotak Mahindra Finance Ltd.

Mr.Uday Kotak has been appointed as the Executive Vice Chairman and
Managing Director of the company.

Kotak Mahindra Finance Ltd has mobilised Rs.104.89cr , asset-backed

securitization of commercial vehicle receivables.

Business Standard and Business Standard digital have ceased to be the

subsidiaries of Kotak Mahindra Finance Ltd.

Mr.C Jayaram and Mr. Dipak Gupta are appointed as whole time Directors on
the Board of Kotak Mahindra Finance Ltd.


Madison Communications has won the Rs.30cr Kotak Mahindra's media AOR

The proposal of changing the name from 'Kotak Mahindra Finance Ltd' to
'Kotak Mahindra Bank Ltd' and the proposal to change the authorized capital
from 100,00,00,000 divided into 10,00,00,000 equity shares of Rs.10 each has
been approved by the company shareholders.

RBI has granted licence to Kotak Mahindra Finance Ltd to embark on its
banking business.

O & M has got the creative account of Kotak Mahindra Bank, and has said to
be working professionally.

Kotak Mahindra Bank has received a lot of interest from portfolio investors,
private equity investors and potential strategic investors.

Kotak Mahindra Bank has entered into an ATM sharing agreement with UTI
Bank, which would allow KMB's customer free access to around 800 ATM's.

Kotak Mahindra Bank has started its operations in New Delhi by inaugurating a
branch Cannaught place office.

Dr.Shankar Acharya has been appointed as the Additional Director to the

board of the bank.

The Board of Kotak Mahindra Bank Ltd accepts the resignation of Mr.S.A.A
Pinto and Mr.M.R Punja as the Directors of the Bank.

Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak Mahindra

Capital Company has constituted itself from a private company to a public
limited co. and has changed its name to 'Global Investment Opportunities Fund

Kotak Mahindra bank has unveiled several home finance products options
which includes Home loan, Home equity Loan, Home loan transfer and Home
improvement loans.

Kotak Mahindra Bank launches online remittance services called,

FUNDStoHOME for Non-resident Indians.

In response to the repo rate cut by the RBI, the Kotak Mahindra Bank has
reduced its lending rates in home loans.

Kotak Mahindra Bank Limited has informed that the equity shares of the Bank
have been delisted from the Delhi Stock Exchange Association Ltd w.e.f
December 10, 2003.


Kotak Mahindra Bank Limited has informed that the Bank's equity shares will
be delisted from The Stock Exchange, Ahmedabad with effect from January 20,

Kotak Mahindra Bank sets up branch in Surat

Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an openended equity growth scheme
Kotak Mahindra Bank inks pact with Reuters


-Kotak Mahindra joins hand HDFC Bank to share ATMs.


Growth of Kotak Mahindra Bank

The journey so far

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.


Key group companies and their businesses

Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd
which was established in 1985, was converted into a bank- Kotak Mahindra
Bank Ltd in March 2003 becoming the first Indian company to convert into a
Bank. Its banking operations offer a central platform for customer relationships
across the group's various businesses. The bank has presence in Commercial
Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier
Investment Bank. KMCC's core business areas include Equity Issuances,
Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities
Kotak Securities Ltd. is one of India's largest brokerage and securities
distribution houses. Over the years, Kotak Securities has been one of the
leading investment broking houses catering to the needs of both institutional
and non-institutional investor categories with presence all over the country
through franchisees and coordinators. Kotak Securities Ltd. offers online
(through and offline services based on wellresearched expertise and financial products to non-institutional investors.


Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra
Primus Limited) has been formed with the objective of financing the retail and
wholesale trade of passenger and multi utility vehicles in India. KMP offers
customers retail finance for both new as well as used cars and wholesale finance
to dealers in the automobile trade. KMP continues to be among the leading car
finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company Kotak Mahindra Asset
Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is
the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages
funds in excess of Rs 25,628 crore and offers schemes catering to investors with
varying risk-return profiles. It was the first fund house in the country to launch
a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between
Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps
customers to take important financial decisions at every stage in life by offering
them a wide range of innovative life insurance products, to make them
financially independent.


Kotak's International Business

With a presence outside India since 1994, the international subsidiaries of
Kotak Mahindra Bank Ltd. operating through offices in London, New York,
Dubai, San Francisco, Singapore and Mauritius specialize in providing asset
management services to specialist overseas investors seeking to invest into
India. The offerings are differentiated India investment solutions that span all
major asset classes including listed equity, private equity and real estate. The
subsidiaries also lead manage and underwrite international issuances of
securities. With its commendable track record, large presence on the ground and
a team of dedicated staff in India, Kotaks international arm is suitably
positioned for managing assets in the Indian Capital markets.

Share Price


Currency: Rs. 2-08-2013 00:00

Day High




Day Low




52 Week High


Change On Day


52 Week Low


Percentage Change

2.10% (decrease Opening Price


Daily Volume


Prev. Closing


Currency: Rs. 2-08-2013 00:00

Day High




Day Low




52 Week High


Change On Day


52 Week Low


Percentage Change

1.92% (decrease Opening Price


Daily Volume



Share Chart


Prev. Closing

Exchange: BSE
Start Date: 1-02-2013 End Date : 2-08-2013

Performance at a Glance

Consolidated Net Worth

Consolidated Book Value per Share

Rs Crore

Rs Crore

Net Intrest Income from the year 2004 to 2013



Consolidated Earnings
per Share (Diluted)
Rs Crore

April 2008 | Launch of Kotak Credit Cards

Quarter 1
Kotak Credit Cards launched.
Kotak Investment Banking awarded Best Investment
Bank in India by Global Finance in 2008.
Kotak Mahindra Bank rated Best Workplaces in India
2008 (study by The Great Places to Work Institute India).
Kotak Investment Banking acts as the exclusive financial
advisor to Mahindra & Mahindra Ltd for preferential
allotment to Goldman Sachs PIA, investment involving
issuance of FCDs during turbulent and volatile market
Kotak Investment Banking & Kotak Securities jointly
awarded Best Equity House in India by Asiamoney in
Kotak Investment Banking is lead manager for the KSK
Energy Ventures Ltd Rs 8.3 billion IPO.


Quarter 2

Kotak Investment Banking awarded Best Investment

Bank in India by FinanceAsia in 2008.
Kotak Investment Banking awarded Best Equity House in
India by FinanceAsia in 2008.
Kotak Investment Banking acts as the manager to the
buyback by Abbott India Ltd.
Kotak Mahindra Bank wins Technology Senate Emerson
Uptime Championship Award 2008 in the BFSI category.
Kotak Securities is selected Business Superbrand India
2008 by Superbrands Council of India.
Kotak Investment Banking is the exclusive financial
advisor to Mahindra & Mahindra Ltd to form a joint
venture with the third largest tractor maker in China
Jiangsu Yueda Yancheng Tractor Manufacturing Co. Ltd.
Kotak Investment Banking is the exclusive financial
advisor to Voltas Ltd for acquisition of majority stake in
Rohini Industrial Engineers, an EPC company with allIndia presence in the
electro-mechanical space.
Kotak Mahindra Bank becomes a CASHnet member.

May 2008 | Kotak Mahindra

Bank continues to remain an
employer of choice.

Quarter 3

Kotak Mahindra Bank crosses 200-branch milestone.

Kotak Investment Banking is the exclusive financial
advisor to Wilo SE for delisting of Mather and Platt Pumps
Kotak Securities voted the Best Brokerage in India and
Sanjeev Prasad ranked Indias Best Analyst by investors
in the Asiamoney 2008 Brokers Poll.
Kotak Investment Banking wins Best Domestic
Investment Bank 2008 award from Triple A Asset Asian
Kotak Life Insurance - Kotak Platinum Advantage Plan
awarded 1st rank in Type II ULIPs category by Outlook

October 2008 |
Kotak Mahindra Bank:
200 branches and growing.

Kotak Long Life Wealth Plus Plans awarded 4th rank in the
Type I ULIPs category by Outlook Money, concluding that
Kotak Life has a product portfolio which delivers what
customers want.
Kotak Investment Banking wins India Equity House of
the Year 2008 award from IFR Asia.
Kotak Group raises Kotak India Realty Fund Ltd with
commitments of US$281 million.


Uday Kotak wins the CNBC TV18 India Business Leader

of the Year Award.


Kotak Royal Signature Credit Card voted "Product of the

Year" in the credit cards category in the Consumer Survey
of Product Innovation 2009 conducted by Nielson. 40,000
people were surveyed in this survey.
Kotak Mutual Fund bags multiple honours at the ICRA
Mutual Fund Awards 2009*:
Kotak Liquid - Regular Plan ranked as a Seven Star Fund
in the category of Open-Ended Liquid schemes for its 1
year performance till December 31, 2008; Kotak Flexi
Debt Fund ranked as a Five Star Fund in the category of
Open-Ended Liquid Plus schemes for its 1 year
performance till 31 December 2008; Kotak Flexi Debt
Fund ranked as a Five Star Fund in the category of OpenEnded Liquid Plus schemes for its 3 year performance till
December 31, 2008; Kotak 30 ranked as a Five Star Fund
in the category of Open Diversified Equity - Defensive
for its 3-year performance till December 31, 2008. The
Five Star category comprises of funds in the top 10
percentile in performance.

Jan 2009 | Uday Kotak receiving

the CNBC TV18 India Business
Leader of the Year Award.

Kotak Mahindra Bank launches Kotak Presidium with President

Bill Clinton 2013
Kotak Presidium, a thought leadership speaker series, will feature some of the most
influential achievers from India and around the world. The inaugural Kotak Presidium
was addressed by President Bill Clinton at the National Centre for Performing Arts
(NCPA), Mumbai on April 10, 2013.
Addressing a 700-strong eclectic gathering comprising business leaders,
policy makers and thinkers, President Clinton's speech covered issues as
diverse as philosophy and sustainable behaviours, built around the moral
necessity of developing the ability to relate to an identity that reflects all
of humanity's shared hopes and aspiration.


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
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 premium banks
in the urban areas

3. Very less Branches all over across the India.


4. Should also concentrate on Medium and small scale industries


1. Increase in Industry banking
2. Explore opportunities abroad by International
3. Increase more and more Branches across India
and worldwide.
4. Expansion Into New Segments

1. Economic slowdown
2. Highly competitive environment
3. Stringent Banking Norms
4. Changing Interest Rates
5. Global Economic Condition




As Per the Survey I Have found that Employees in 11 Companies are above 40
Employees in 23 companies are between 30-40
Employees in 16 companies are between 20-30



As the companies Survey We can see the Turn Over

Turnover of 19 Companies is between 0-200 cr
Turnover of 15 Companies are between 200-500 cr
Turnover of 12 Companies are between 500-1000 cr
Turnover of 4 Companies are above 1000 cr


As per the Companies survey Regarding Loan Facility Taken from any Bank
46 Companies said they have taken Loan Facility
4 Companies said they have not taken any loan Facility



As Per the Companies survey the bank which are been used by the companies
3 Companies where using Kotak Mahindra Bank
16 Companies where using HDFC bank
9 Companies where using ICICI Bank
7 Companies where using City Bank

15 Companies where using Others Bank


As per the Company Survey Types of Payments which are been used by the
All the companies mainly uses all types of payments,very few companies uses
only cheques and online payments.
All the vendor payments , Employees Salary, and other transaction are done
through all the modes of payments.



As per the companies Survey regarding Companies Operation in India, Abroad,

26 Companies have their operation only in India, as they have their different
head office and Branches only in India.
2 Companies have their Operation in Abroad just they have their Head Office in
Gurgaon Region.
22 Companies Have their Operation Both in India and Abroad.



As per the companies survey regarding Problem they are facing from their
current bank
Only 2 Companies said that they are facing problem ,and the remaining 48
Companies said that they are very much happy with their bank, and their


Data collection for the organization was according to the questioner prepared by
the Kotak Mahindra Bank, according to the requirements of the company and
the problem they are facing from the Current banks, the question was mainly to
find out the problem of the banks,
As I have distributed 70 questioner out of which 50 where filled and returned
back to me , as I have covered the Gurgaon part during my Internship as we can
see that most the companies are in Gurgaon region,as the time was two month,
but I tried to collect as much data I can.

Primary data was the questioner which was been made by the Bank and it
contain 10 question which was been asked by them to analyze the data,
There where around 50 questioner which was been distributed,
Data was mainly related to their organization which deals with the finance , and
the questioner where been filled by the finance team of the organization.
After the collection of the primary data I did the analysis by making the pie


At the outset of the chapter a strong case is made for studying secondary data
before engaging in primary research. The potential benefits of beginning any study
with secondary data are outlined, including the prospect that in some cases
possession of relevant secondary data may obviate the need for primary research to
be undertaken at all.
This discussion is followed by an overview of the questions that should be asked
when evaluating secondary sources and data in terms of their validity and accuracy.
Thereafter, the principal internal and external sources of secondary data are
The final section of this chapter briefly points towards future developments in the
storage and retrieval of secondary data. Mention is made of electronic systems like
the Internet and CD-ROMs

Secondary data may be available which is entirely appropriate and wholly adequate to
draw conclusions and answer the question or solve the problem. Sometimes primary
data collection simply is not necessary.
It is far cheaper to collect secondary data than to obtain primary data. For the same
level of research budget a thorough examination of secondary sources can yield a great
deal more information than can be had through a primary data collection exercise.
The time involved in searching secondary sources is much less than that needed to
complete primary data collection.
Secondary sources of information can yield more accurate data than that obtained
through primary research. This is not always true but where a government or
international agency has undertaken a large scale survey, or even a census, this is likely
to yield far more accurate results than custom designed and executed surveys when
these are based on relatively small sample sizes.
It should not be forgotten that secondary data can play a substantial role in the
exploratory phase of the research when the task at hand is to define the research
problem and to generate hypotheses.
Secondary sources help define the population. Secondary data can be extremely
useful both in defining the population and in structuring the sample to be taken. For
instance, government statistics on a country's agriculture will help decide how to stratify
a sample and, once sample estimates have been calculated, these can be used to
project those estimates to the population


Findings was on the basis of questioner which was been prepared according to
know the problem the companies are facing.
Finding was mainly done on the primary basis ,by asking them the question , as
50 questioner where distributed to different companies of Gurgaon region
As we have to know in what type of business the company was into, turnover of
the company, which banks they are using and whether they are satisfied with
the banks or not.
Our main focus was on the Remittance and the conversion margin the foreign
exchange the how much they charge for the conversion of the currency. And the
taken by the bank to convert the currency.
Analysis was that I analyze the questioner through pie chart and I found that the
organization are already dealing with some other bank, and related to Kotak
Mahindra Bank they replied as it is a very small bank, and do not have much
branches. And they are dealing with other banks like HDFC, ICICI,
AMERICAN EXPRESS, CITY BANK, etc., but I found that very few
companies are dealing with Kotak Mahindra bank, as they are not doing any
advertisement, they are unable to approach the companies, and for some of the
companies who are dealing with Kotak Mahindra bank they are not happy with
the client handling, and the feedback.
Kotak Mahindra should look over for expanding their branches, and should
approach the new companies, because if the companies are already dealing with
some other banks they do not want to shift to some other banks
As I have visited the new companies and approached them for the meetings
they were happy and ready to fix meetings with our chief manager.
Bank should approach the new ventures and the medium and small scale
companies also.




After getting the insight knowledge of commercial banking, I would like to

recommend the following points
1- The Banks should liberalize their policy to attract new born Companies
for promotion of their business.
2- There should be efficient problem resolving mechanism for corporate
3- There should be proper maintenance of database.
4- The company should be aware with the core competency of the
5- The company should find out the tactics to beat the competitors in the
battle of client creation
6- The core competency should be invincible.
7- They should not discriminate between small, medium and large scale
8- Kotak should reduce the interest rate to approach more companies.
9- They should expand to new segment, or launch the new services
according to the organization need.

Kotak Mahindra Bank

Consolidated Balance Sheet


------------------- in Rs. Cr. -------------------

Mar '13

Mar '12

Mar '11

Mar '10

Mar '09

12 mths

12 mths

12 mths

12 mths

12 mths

Total Share Capital






Equity Share Capital






Share Application Money






Preference Share Capital






Init. Contribution Settler






Preference Share Application Money






Employee Stock Opiton
















Net Worth


















Total Debt
















Capital and Liabilities:

Revaluation Reserves

Minority Interest
Policy Holders Funds
Group Share in Joint Venture






Other Liabilities & Provisions











Mar '13

Mar '12

Mar '11

Mar '10

Mar '09

12 mths

12 mths

12 mths

12 mths

12 mths

Cash & Balances with RBI






Balance with Banks, Money at Call























Total Liabilities


Gross Block
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets





















Minority Interest






Group Share in Joint Venture
















Total Assets

Contingent Liabilities


Bills for collection

Book Value (Rs)












Annual Report, Kotak Mahindra Bank- 2011-12


Chapter 1- Defination
Chapter 2- Executive Summary
Chapter 3- Research Methodology
3.1 -Primary Objective
3.2 -Research Design
3.3 -Sample Design
3.4 -Scope of the study
3.5 -Chapter Limitation
Chapter 4- Critical Review of Literarure
Chapter 5- Company Profile
5.1 Industry Profile
5.2Swot Analysis
Chapter 6-Data Collection
6.1Primary Data
6.2Secondary Data
Chapter 7- Finding And Analysis
Chapter 8- Recommendations
Chapter 9- Bibliography


Profit and Loss Account
Balance Sheet


Kotak Mahindra Bank


Standalone Profit & Loss account

------------------- in Rs. Cr. ------------------Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

Interest Earned



Other Income



Total Income



4,811.12 3,676.59

Interest expended



2,058.49 1,397.48

Employee Cost





4,303.56 3,255.62



Selling and Admin Expenses

Miscellaneous Expenses
Preoperative Exp Capitalised
Operating Expenses
Provisions & Contingencies



















1,528.58 1,447.42





Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths









Profit brought forward




















Earning Per Share (Rs)





Equity Dividend (%)





Total Expenses

Net Profit for the Year

Extraordionary Items

Preference Dividend
Equity Dividend
Corporate Dividend Tax



3,992.94 3,115.50

1,784.09 1,212.06

Per share data (annualised)


Book Value (Rs)













Transfer to Statutory Reserves
Transfer to Other Reserves
Proposed Dividend/Transfer to Govt





Balance c/f to Balance Sheet








1,784.09 1,212.06

Please Specify
Above 40
Above 1000 Specify.


Kotak Mahindra Bank

IF Other Specify


All of the Above

9. DO YOU USE EEFC ( Exchange Earners Foreign Currency ) ACCOUNT?



Case study on Kotak Mahindra bank.
The onset of the global financial crisis had interrupted Indias growth
momentum. After clocking an annual average growth of 8.9% over 2003-2008,
India headed into a cyclical downturn in 2008-09.
The recovery of the Indian economy started in the 1st quarter of 2009-10 when
the GDP growth bounced back to around 6.1% from the previous quarters
5.8%. The recovery strengthened significantly especially from the 2nd quarter
of 2009-10, driven by a strong momentum in the industrial output and a better
performance of the service sector. The monsoon was erratic with June
September 09 period showing a significant shortfall, but despite the widespread
drought and relatively poor agriculture production in 2009-10, the Indian
economy is expected to grow at 7.2% in 2009-10 as per the advance estimates
released by the Central Statistical Organization.
The recovery story of the Indian economy is also evident from the side of the
Index of Industrial Production (IIP), which was led by the manufacturing sector
with the average growth at 10.5% in April 2009 to February 2010 compared to
3.1% in the similar period last year. A sharp recovery in the capital goods
segment is also indicative of rising investment demand.

Headline WPI inflation remained significantly volatile in 2009-10, and closer to

the end of the FY 10, the pace of increase in the prices became a concern.
Rising food prices, increase in the prices of domestic petrol and diesel and also
a waning of the base effect of the last year accounted for the sharp rise in the
Headline WPI inflation. While prices of most of non-food commodities moved
in line with the international commodity prices, domestic food prices exhibited
contrarian movement in relation to the respective international prices.
As per the latest monthly data available on WPI, Headline WPI inflation was at
9.9% in March 2010. There are signs that the high food prices are getting
transmitted to other non-food items, thereby creating concerns over a more
generalized inflation in the months ahead. Consumer price inflation had also
been on the rise through 2009-10. In April 2009 CPI-Industrial workers was at
8.70% but this gradually increased to 14.86% in February 2010 after peaking at
16.22% in January 2010.
In 2008-09 the monetary policy was prioritized towards arresting moderation in
growth and by the end-March 2009, RBI had reduced the CRR and the Repo
Rate by 400 bps each (to 5.00% for both) from its peak levels while the Reverse
Repo rate was reduced from 6.00% to 3.25%, a drop of 275 bps. In the course
of 2009-10 the stance of monetary policy was geared towards supporting early
recovery of the growth momentum while facilitating the large borrowing
programme of the Government. RBI has been continuously monitoring the
inflation and has taken steps during the year to address these. In October 2009,
the mandatory SLR requirement was restored back to its earlier level of 25% of
NDTL. The CRR requirement was raised by 75 bps on January 29th to end
FY10 at 5.75%. On the other hand, the Repo as also the Reverse Repo rates was
increased by 25 bps each on 19th March 2010. While the Reverse Repo rate at
the end of the FY was at 3.50%, the Repo rate ended the FY at 5.00%.
Liquidity conditions remained hugely in surplus in 2009-10 and thus the money
market conditions remained largely orderly. The collateralized segment
remained the predominant segment of the money market and accounted for
more than 80% of its total volume. About 75% of the lending in the
collateralized segment was contributed by mutual funds.
10-year G-Sec yields movements can be categorized into 3 distinct phases. In
the first phase (April 2009), 10-year G-Sec yield dropped sharply from 7.01%
to 6.23%, in the 2nd phase (May-August 2009), benchmark 10-year yield
started to increase as the size of primary auctions were higher (from Rs. 12,000
crore to Rs. 15,000 crore) By end-September the 10-year yield rose to 7.17%. In
the 3rd phase G-sec yields witnessed ranged trades before exhibiting a

hardening bias on the back of lack of OMO purchase auctions in the second half
of the FY; consequently the 10-year G-sec yield was at 7.72% by mid-January
2010 and also increased to above 8.0% in early March, 2010. 10-year yield
softened to close the FY10 at around 7.85% The weighted average yield of
dated securities in H1 of 2009-10 was at 7.18% which increased to 7.72% in
H2, bringing the average for the year at 7.36%. The higher weighted average
yield in H2 was due to the lengthening of the borrowing maturity in H2 to 11.70
years compared to 10.93 years in H1. For the full year 2009-10 the weighted
average maturity was at 11.16 years.
In 2008-09, the adverse impact of the global financial market turmoil was felt in
the form of a reversal of FIIs inflows and decline in long-term and short-term
debt flows. As the global financial markets stabilized, flows into the Indian
economy through FII, FDI and most of the debt categories improved. Further,
the outcome of the general elections created positive market sentiments on
reforms and disinvestments, leading to a sharp move up in the equity markets.
These led to an appreciation for the rupee against USD, from around Rs. 51 per
USD in end-March 2009, ending the FY10 at around Rs. 44.92 per USD.
consolidated Financial Performance
The improvement in the economic environment in India was more rapid than
the developed world. This improvement led to an upturn in the financial
services sector and capital markets in India. The Bank and its subsidiaries
continue to grow and are progressing well in adding customers, products and
Consolidated profit after tax grew 100% to Rs. 1,307 crore. This is the highest
yearly profit for the group. As on March 31, 2010, the Group has a distribution
network of branches, franchisees, representative offices and satellite offices
across 473 cities and towns in India and offices in New York, London, San
Francisco, Dubai, Mauritius and Singapore. The group services around 7 mn
customer accounts.
MDNA.indd 69 5/31/2010 9:04:01 PM
70 Kotak Mahindra Bank Limited
During the year the Bank won the following awards: Adjudged amongst the
Top 25 Best Employers in India 2009 by Hewitt Associates IDRBTS
Special award for IT Governance & Value Delivery Awarded Best
Companies to Work For in 2009 by Great Places to Work Institute India.
IDG Indias CIO 100 Ingenious 100 award and the CIO 100 Storage
Virtualization award. Ranked No. 2 in India and among top 30 globally for


Best Corporate Governance Practices by IR Global Rankings 2010.

Awarded Best Local Cash Management Bank by Asiamoney 2009.
As at March 31, 2010 the Bank has built a network of 249 full fledged branches
spread across 145 locations and 492 ATMs. The Bank proposes to double its
branch network over the next three years. Kotak Mahindra Capital Company
and Kotak Securities reported good financial performance on the back of strong
capital markets and improved economic environment. The life insurance
subsidiary, Kotak Mahindra Old Mutual Life Insurance (KLI) continued its
growth momentum and posted significant growth in profits. Assets under
management (AUM) as at 31st March 2010 was over Rs. 45,224 crore
(approximately USD 10 bn) comprising assets managed and advised by the
Group. Of this, equity assets managed / advised by the Group were around Rs.
21,612 crore. The AUM with Kotak Mahindra Mutual Fund (Kotak Mutual)
was over Rs. 24,000 crore.
consolidated Financials
Rs. crore Income and Profit 2009-10 2008-09 Total Income* 9,985.90 7,180.54
Operating profit 2,413.60 1,277.36 Consolidated Profit after tax (PAT)
1,307.00 652.39 * income is net of sub-brokerage Rs. crore Particulars 2009-10
2008-09 Net Worth After minority Interest 7,910.94 6,522.54 Earnings per
share (diluted) (Rs.) 37.28 18.87 Book Value per share (Rs.) 228.09 188.70 Net
Interest Margins (NIMs) % 6.3% 6.1% Return on Average Networth % 18.2%
10.5% Net NPA% excl Stressed assets portfolio 1.14% 1.18% Consol Capital
Adequacy ratio% 19.3% 22.5%
The consolidated total income was Rs. 9,985.90 crore during FY 09-10 and Rs.
7,180.54 crore in FY 08-09. Other income was Rs. 5,384.74 in FY 09-10 and
Rs. 2,813.98 crore in FY 08-09. Consolidated other income had three main
components: Commission, fees, exchange & brokerage, profit-on- sale of
investments and premium on life insurance business. Commission, fees,
exchange & brokerage net of sub brokerage increased to Rs. 1,283.67 crore in
FY10 from Rs. 1,034.07 crore in FY09, with key drivers being fee income from
stock broking business, asset management / advisory fees, core fees from the
Bank and investment banking. Premium income from life insurance business
grew by over 24% to Rs. 2,849.34 crore.
bAnk AnD Its kEy sUbsIDIArIEs: FInAncIAl AnD oPErAtIng PErForMAncE
The Bank along with its subsidiaries, offers wide range of financial products
and services to its customers. The key businesses are commercial banking,
investment banking, stock broking, car finance, asset management and life
insurance. The Bank is the central platform for customer relationships across

the Group. The banking business model is directed towards maximising revenue
generation from customers by offering a wide range of products and services to
address all their banking needs. The Bank has four broad business segments:
Lending Retail liabilities and branch banking
Corporate banking
(including small and medium enterprises SME)
Treasury and
MDNA.indd 70 5/31/2010 9:04:01 PM
Kotak Mahindra Bank Limited 71
The profit before tax of the Bank for FY 09-10 was Rs. 811. 10 crore and Rs.
426.06 crore in FY 08-09. The profit after tax of the Bank was Rs. 561.11 crore
in FY 09-10 and Rs. 276.10 crore in FY 08-09. The break up of segmental
results is as follows: Rs. crore
Segment 31-Mar-10 31-Mar-09 Treasury and BMU 367.46 129.29 Corporate /
Wholesale Banking 385.46 225.34 Retail Banking 61.05 71.28 Sub-total 813.98
425.91 Unallocated Income / (expense) (2.87) 0.15 Profit before tax 811.10
As per BASEL II Capital adequacy ratio of the Bank as at 31st March 2010 was
18.35% (31st March 2009 20.01%). Tier I ratio was 15.42%. The advances of
the Bank as at 31st March 2010, stood at Rs. 20,775.05 crore (Rs. 16,625.34
crore as at 31st March 2009), showing a growth of 25%. As at 31st March 2010,
the net NPAs of the Bank excluding the acquired stressed assets portfolio were
at 1.25% of net advances (1.26% as at 31st March 2009). The Net NPAs of the
Bank including stressed assets portfolio were at 1.73% of net advances as at
31st March 2010 (2.39% as at 31st March 2009). As at 31st March 2010, the
deposits of the Bank were Rs. 23,886.47 crore (Rs. 15,644 crore as at 31st
March 2009), showing a growth of 53%. As at 31st March 2010, total deposits
comprised of Rs. 4992.13 crore of current account deposits (Rs. 3417.22 crore
as at 31st March 2009), Rs. 2,471.00 crore of savings deposits (Rs. 1,700.91
crore as at 31st March 2009) and Rs. 16,423.33 crore of term deposits (Rs.
10,525.86 crore as at 31st March 2008).
Advances The break up of the advances of the Bank is given below:
Rs. Crore
Segment 31-Mar-10 31-Mar-09 A. Lending Commercial Vehicles &
construction equipment 3,693.47 3,334.54 Mortgage Loans 4,711.63 3,300.17
Agriculture Finance 3,088.62 2,365.02 Personal Loans 1,314.98 2,261.60 B.
Corporate Banking 6,476.13 3,697.11 C. Others 1,490.22 1,666.90 Total
Advances 20,775.05 16,625.34


retail Assets commercial lending Commercial lending during the year showed
impressive growth on the back of robust growth in the sales of commercial
vehicles (CV), construction equipments (CE) and tractors. Commercial lending,
specifically CV and CE typically follow a lead and lag effect with GDP growth
figures. CV industry for instance, started showing signs of growth in Q3 of 0809 and continued to gain momentum with better than expected GDP numbers.
As a result of these growth trends, disbursements gained momentum. Operator
margins improved through growth in freight rates and contractor order books
showed growth. The strain on collections witnessed through last year, has
gradually eased as a consequence and is expected to improve further. The
tractor industry has also shown impressive growth with total tractor sales
expected to touch 4 lacs vehicles for the year 2009-10 as against 3.03 lacs last
year. The primary driver has been the increased disposable income of the
farmers arising out of the revision in minimum support price of commodities,
overall food inflation and better yield despite the delayed monsoon.
construction Equipment Infrastructure development has been given a boost in
the current year. With the overall project investments increased during this
period by over 26% while project implementation improved to 44% from 41%.
This has improved sentiments in the Construction Equipment sales. During the
last quarter of the year, most of the construction equipment majors have
improved their sales across segments. Despite improved sentiments, the
payment cycle continued to be long and based on this most of the retail and
mid-size operators faced financial crunch. The delinquency in the industry is
still continuing as the operators are facing difficulties in bridging the Gap
created during the recession period although they are paying their current EMIs.
MDNA.indd 71 5/31/2010 9:04:01 PM
72 Kotak Mahindra Bank Limited
Personal Finance and Mortgage business For Personal finance and Mortgage
business, the year started cautiously, with focus on leveraging the existing base
and cross sell opportunities. The mortgage business started seeing growth
because of an upsurge in demand. Lower cost of borrowing has helped in
pricing competitively as compared to previous years. Further, the existing
liability branch network was also used as an active channel with the
contribution from the channel has grown to about 30% of overall
disbursements. For personal finance business, there was an opportunity for
lenders to capitalise on the latent loan demand in the market, with most lenders
still being wary of the low-ticket unsecured segments. In addition, lenders have
strengthened and revamped their underwriting norms so that they align with the

credit bureau CIBIL. The collection efficiencies in personal finance business

have shown an improvement across all loan bands. With the improvement in
portfolio quality indicators, the Bank focused on products in the high ticket
range. The mortgage business continues to see a great opportunity and the
personal finance business will continue to see some consolidation with a focus
on high-ticket products.
Agriculture Finance Despite the fear of a bad monsoon and rising food prices,
the agriculture sector continued to show resilience in repayments. In this
backdrop, the agricultural financing continued to show growth and in the
process crossed the required 18% of the Net Bank Credit stipulated by RBI. The
focus of the Agriculture business continued in activities like Tractor loans, crop
loans, agriculture project financing, working capital facilities to agriculture and
agro processing facilities where it consolidated its presence in its existing
markets. This segment also built up business volumes in fresh segments in the
rural sector as part of the financial inclusion initiatives of the bank.
corporate banking Corporate Banking reflects Kotak Banks strengths in
providing corporate clients, a wide array of commercial, transactional and
electronic banking products. This was achieved through innovative product
development, an integrated approach to relationship management and offers a
complete suite of services. The product suite comprise of the traditional bank
products such as term loan & working capital and value add services like trade
finance, channel finance, foreign exchange, cash management and distribution
of third party products. To augment & suit the dynamic & varied needs of
customers across segments, the entire range of Debt Capital Market products
(syndication, fixed income and structured products) are offered through a team
of experienced & highly qualified professionals. During the year, continued
focus and a dedicated approach towards the segment has resulted in addition of
over 250 clients. So also the bank has been able to increase its product
penetration with its existing customers. This has resulted in a significant build
up of both, funded and non-funded advances in this segment.
branch banking The bank added 32 branches, 77 off site and 28 onsite ATMS
this financial year taking the total number of branches to 249, 252 off-site
ATMs and 240 on site ATMs. The bank had a debit card base of 829,876 as at
March 31, 2010. Total number of deposit accounts as at March 31, 2010 are
11,89,000. As the economy started showing signs of recovery, the business saw
increased level of transactions. The advantage of wider network was clearly
visible in the CASA growth rates, asset distribution, Mutual Fund & other


equity products and insurance penetration. The key initiatives that the Branch
Banking business undertook this year can be summarized as under:
customer service Launched a nation wide project titled SPIRIT aimed at
improving the overall service levels cutting across all delivery channels
branch, net, contact centre, mobile and ATM. Successfully launched best in
class CRM package covering all Service and Sales roles across entire branch
network and Contact Centre. Launched two commercial branches in Mumbai
on a pilot basis to handle trade transactions. This move is aimed at driving
substantial increase in the throughput of the system with reduced times and
improved customer service. Product Distribution Launched Privy Program
aimed at HNI customers of the bank. This program has several enhanced and
enriched features which makes it one of the unique product offering in the
market. A comprehensive Private Banking System was launched which shall
enable us to offer comprehensive financial planning and advisory services to
customers which balances customers financial goals with their risk profile.
Revised RBI guidelines on ATM usage provided with an opportunity of
increasing acquiring income. Capitalizing on this opportunity bank adopted a
strategy of almost doubling its off site ATM network. This change also
benefited us in improving overall utilization of our ATM network.
MDNA.indd 72 5/31/2010 9:04:01 PM
Kotak Mahindra Bank Limited 73
significant Alliances Kotak Bank was appointed as a sole Financial Advisor
by Overseas Indian Facilitation Centre (OIFC). This provided us an opportunity
to partner the Government of India and CII in presenting its product bouquet to
NRI / PIOs community across the globe. Succeeded in empanelling itself
with Government of Goa, Gujarat and Karnataka for sourcing government
business. Succeeded in getting ourselves empanelled with some of the best
known names in the country for providing Corporate Salary Product to their
Productivity & control Enhanced 2 factor authentication, using SMS / Email,
for net banking access significantly increased the customer confidence in using
net banking platform offered by the bank on net. Launched bank wide
initiative EUREKA seeking suggestions from employees aimed at improving
productivity, enhancing customer experience, Saving Cost and improved
control (HR section). Availability of the Comprehensive Data warehousing
and analytic tool (RELIABILITY) across all field roles ensured timely
availability of information for decision making.


treasury The treasury operated in the following monetary policy environment.

The LAF liquidity was comfortable and averaged at above Rs. 1,00,000 crore in
2009-10. In April 2009, RBI reduced the Reverse Repo and the Repo rate by 25
bps each to 3.25% and 4.75% respectively. However, the stance of monetary
policy changed as Headline WPI inflation started to emerge as a problem in the
2nd half of the year. In October 2009, the mandatory SLR requirement was
restored back to its earlier level of 25% of NDTL while other sector-specific
liquidity measures were withdrawn. In January 2010 CRR was raised from
5.00% to 5.75% while RBI hiked Reverse Repo and the Repo rates by 25 bps
each to 3.50% and 5.00% respectively in mid-March, 2010. The Central
governments gross borrowing programme was large at Rs. 4,51,000 crore that
exerted some pressure on bond yields. The G-sec yield curve steepened with the
10-1 spread rising to 343 bps intra-year from around 190 bps at the beginning
of the year. Given this environment, treasury adopted carry strategy to take
advantage of the steep yield curve while capturing intermittent trading
opportunity in the fixed income market. The modified duration of the banking
book was marginally increased from 1.41 in early April 2009 to 1.51 by endMarch 2010, whereby banking book started to produce positive returns. The
Primary Dealership desk was able to satisfactorily meet all its bidding and
success commitments made to the Reserve Bank of India. Shrinking of spreads
of corporate bonds over underlying G-secs coupled with increased FII activity
presented numerous opportunities in the corporate bond market which the
treasury was able to successfully capitalize. The Balance Sheet Management
unit (BMU) of treasury was able to maintain all regulatory obligations like CRR
and SLR and successfully managed residual liquidity. The efficient
management of residual liquidity resulted in significant reduction in the cost of
liabilities and helped in enhancing the spreads. Given the volatility in the
currency markets, reinstatement of foreign exchange trading limits was
measured and calibrated and the desk was able to produce decent trading
revenues. The focus of the treasury continued to be on foreign exchange flow
business. There was a healthy increase in the number of transactions and
volumes in the foreign exchange merchant business. The treasury also increased
its focus on bond and loan syndication markets as part of its Debt Capital
Markets (DCM) business. The participation of the treasury in the bullion market
was muted due to the high gold prices resulting in lower import of gold into the
country. The bank did not participate in the derivative market both on
proprietary account and client account as it awaits further clarity on legal,
regulatory, accounting and taxation fronts. The treasury and ALCO continued

their heightened vigil on liquidity, counterparty and sovereign risks. During the
year, the focus of the treasury was also on up-gradation of technology platform
and re-engineering of various treasury operating processes.
kotAk MAHInDrA PrIME lIMItED (car finance, other lending) Kotak
Mahindra Prime Limited (KMP) is primarily into car finance, engaged in
financing of retail customers of passenger cars and multi-utility vehicles and
inventory and term funding to car dealers. In addition to car finance, KMP also
carries out other lending activities. Other lending activities include financing
against securities, securitization / assignment transactions, purchase of nonperforming assets and other loans / services. There was a upsurge in the
automobile industry and it registered a healthy growth of 24.89% during FY 0910 as compared to a decline of 1.7% for FY 08-09. Total unit sales of cars and
MUVs were around 18.6 lac units in FY 09-10 versus 14.9 lac units during FY
08-09. KMPs advances grew 49% to Rs. 8,379 crs in FY 09-10 from around
Rs. 5,615 crs in FY 08-09. KMP continued to focus on maintaining margins in
the retail car finance business, fee based income, controlling costs and credit
losses, while improving its positioning in the car finance market by scaling up
business. KMP has been a part of the car finance industry since more than 19
years. Over this period, it has carved out a niche for itself and is considered a
leader in the industry. It has strong relationship with key stake holders in the
industry viz. manufacturers, dealers and customers has helped its growth.
MDNA.indd 73 5/31/2010 9:04:01 PM
74 Kotak Mahindra Bank Limited
Financial Highlights
The financial position of KMP for the current and previous financial year is
given below:
Rs. crore Particulars 2009-10 2008-09 Gross Income 992.06 982.21 Profit
before tax 258.87 243.21 Profit after tax 166.41 157.00
kotak securities Post the General Election results in the month of May 2010,
there was a pick up in the Capital Markets and average daily volumes in FY 0910 were 57% higher than the year FY 08-09 in cash segment and 27% in
derivative segment. This resulted in an increase in the companys revenues. The
national outlet network stood at 1,113 (up from 783) due to the introduction of
new Sub-Brokers and new branches. The number of trading accounts added
during the year was 66,000. The AUM of portfolio management services funds
under management stood at Rs. 2,302 crore as at 31st March, 2010 (Rs. 2,237
crore as at 31st March, 2009). Primary market issuances were back in the
Capital Markets. KS was able to maintain its leadership position in mobilization

for these issues. Kotak Institutional Equities (KIE), a division of Kotak

Securities, is one of the leading institutional brokers in India. The division
covers secondary market broking and the marketing of Indian equity offerings,
including IPOs, FPOs & QIPs to domestic and foreign institutional investors
(FIIs). KIE has full financial service capability, which includes derivatives,
facilitating market access through affiliates and the distinctive offering of
corporate access to investors. KIE has a full-fledged research division engaged
in macro-economic studies, industry-and company-specific equity research.
KIE research is known for its in-depth modeling, width of coverage and
investment insights. In the Asiamoney Brokers Poll 2009, KIE was ranked No.
1 among local brokerages (for the 4th year in a row) and No. 2 in Country
Research, Sales Services and Sales Trading across domestic and international
brokerages. KIE was also named Best Broker in India by FinanceAsia in 2009.
Financial Highlights The financial position of Kotak Securities for the current
and previous financial year is given below:
Rs. crore Particulars 2009-10 2008-09 Income 837.86 719.87 Profit before tax
403.88 166.77 Profit after tax 260.10 106.48
kotak Mahindra capital company limited Kotak Mahindra Capital Company
(KMCC) primarily operates as a full service Investment Bank and is also a
trading-cum-Clearing Member of the National Stock Exchange on all three
segments viz. Cash, F&O and WDM. The year turned out to be a better year for
the securities markets fund raising, in sharp contrast to the year before. KMCC
delivered improved performance both in terms of business activity and
revenues. Strong relationship driven approach helped garner approximately
50% of the fund raising activity in the domestic market. Significant progress
has been made on critical strategic initiatives that will drive our business in the
years ahead. During the year, KMCC expanded strategic alliance partner list by
entering into a co-operation agreement with Renaissance Capital for crossborder M&A advisory. Renaissance Capital is the leading investment bank in
the Russia / CIS and Sub-Saharan African regions with market-leading
positions in each of its core businesses. Amidst stiff competition, KMCC won
the following awards and was ranked high on the equity and M&A league table
rankings: Ranked No. 1 in Domestic Fund Raising League Table for FY10
by Prime Database. Ranked No. 1 Book Running Lead Manager in Initial
Public Offerings between FY07 YTD FY10 by Prime Database and also for
FY10. Ranked No. 4 in value of announced M&A Transactions in India
(inbound + outbound) for Calendar 2009 by Bloomberg. Best Investment


Bank in India by FinanceAsia, 2009 for the fourth year in a row. Best
Domestic Equity House by Asiamoney, 2009 for the second consecutive year.
In the capital markets, in FY2010, Kotak Investment Banking was the lead
manager to thirteen out of the twenty Initial / Follow on Public Equity Offerings
(above Rs. 2.5 billion) accounting for ~85% of the total money raised in these
Offerings. We have helped companies raise more than Rs. 500 billion in the
domestic markets during FY2010.



Banking Requirements for Online

Companies and Other Companies
Students Name: Raja Gupta
Industry Guide Name: Mr Manas Mehra
Faculty Guide Name: Dr Shailender Kumar

The Project gives a brief overview of the Banking Requirements of the

Companies scenario highlighting the past events and future outlook.
This is followed by the organizational profile of the company under study ie.
Kotak Mahindra Bank Ltd. The objective of the project is to gain the need and
requirements of the companies which they need from the Bank.
The project is about banking requirements of the Companies in India. The
motive of this project was to find out the companies requirements, and the
problem they are facing from their current bank. The SWOT analysis has been
done to analyze the Banks, and the services provided by the banks.
Major finding includes that the Kotak Mahindra Bank have to expand their
Branches, and make different strategies to compete other Commercial Banks, as
the competition is very high.