Tech Startup Growth Hacking 101 - Basics on Growth Marketing
MINOR PROJECT REPORT.docx
1. MINOR PROJECT REPORT
“A STUDY OF THE PRODUCT AND SERVICES OF KOTAK MAHINDRA
BANK”
SUBMITTED IN PARTIAL FULFILLMENT
FOR THE AWARD OF THE
DEGREE IN BACHELOR
OF BUSINESS ADMINISTRATION
2013-16
UNDER THE GUIDANCE OF SUBMITTED BY
Mr. Jagat Jyoti Barua Amit kumar shah
05314701713
MAIMS BBA 3rd SEM, B
Maharaja Agrasen Institute of Management Studies
Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot
No.1, Sector 22, Rohini, Delhi-11008
2. TABLE OF CONTENT
DECLARATION i
CERTIFICATE ii
ACKNOWLEDGEMENT iii
EXECUTIVE SUMMARY iv
CHAPTER – 1
1.1Introduction 7
1.2profile of the organisation
CHAPTER –
2.1 Objectives 9
CHAPTER – 3
3.1 Research methodology 11
CHAPTER-4
4.1 Productand services
CHAPTER – 5
5.1 Company History 16
5.2 Company Vision 18
5.3 Company’s Competitors 22
3. CHAPTER – 6
Finding and Analysis 31
6.1 S.W.O.T. Analysis 32
CHAPTER – 7
7.1 Limitations of the study 61
CHAPTER – 8
8.1 Suggestions 63
CHAPTER – 9
9.1 Conclusion 66
BIBLIOGRAPHY 68
Signature:
4. DECLARATION
This is to certify that I have completed the Minor Project title “A Study of the
Product and services of Kotak Mahindra bank” under the guidance of “Mr.
Jagat Jyoti Barua ” in partial fulfillment of the requirement for the degree of
Bachelor of Business Administration at Maharaja Agrasen Institute of
Management Studies, Delhi. This is an original piece of work and I have not
submitted it earlier elsewhere.
Name of the Student
Amit Kumar shah Date:
BBA 3rd SEM.
05314701713
5. CERTIFICATE MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT
STUDIES
This is to certify that the minor project titled “A STUDY OF THE PRODUCT
AND SERVICES Of KOTAK MAHINDRA BANK” is an academic work done
by “AMIT KUMAR SHAH” submitted in the partial fulfillment of the
requirement for the degree of Bachelor of Business Administration at Maharaja
Agrasen Institute of Management Studies, Delhi, under my guidance and direction.
To the best of my knowledge and belief the data and information presented by her
in the project has not been submitted earlier.
Name of the Faculty Guide
Mr. JAGAT JYOTI BARUA
MAIMS
6. ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any
task is incomplete without the mention of people who made it possible. So I take
this as a great opportunity to pen down a few lines about the people to whom my
acknowledgement is due. It is with the deepest sense of gratitude that I wish to
place on record my sincere thanks to
Mr. Jagat Jyoti barua, my project guide for providing me inspiration,
encouragement, guidance, help and valuable suggestions throughout the project.
I would also like to thank all my respondent and friends for giving me their
valuable time and information without their help and support this project wouldn’t
have come up to the expectations.
AMIT KUMAR SHAH
7. EXECUTIVE SUMMARY
.In this we will first give introduction to the study. It provides basic information
about the study and the theoretical background of the study. The other things it
shows objectives of undertaking this project by which we can understand the
main objective. The third chapter shows the research methodology used in
completion of this project. The Forth chapter is the profile of the Company &
its Functional departments. It gives a detailed description about the origin of the
KOTAK MAHINDRA BANK in India. The chapter outlines the growth,
developments and present status, future prospectsand plans of the company.
The data analysis and interpretation refer here. It gives a brief summary of
finding and conclusions about the project undertaken. The sixth chapter shows
the limitations of study. The seventh chapter is the recommendations and
suggestions. It gives a brief recommendations and suggestions about the project
undertaken. The eighth chapter is conclusion of project. The bibliography from
where information was gathered
9. INTRODUCTION
Kotak Mahindra Bank is the fourth largest Indian private sector bank by market
capitalization headquartered in Mumbai, Maharashtra. The Bank’s registered office
(headquarter) is located at 27BKC, Bandra Kurla Complex, Bandra
East, Mumbai,Maharashtra, India.
In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was
given the licence to carry on banking business by the Reserve Bank of India (RBI).
Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to
convert to a bank.
As on June 30, 2014, Kotak Mahindra Bank has over 600 branches and over 1,100
ATMs spread across 354 locations in the country.
10. 1.2 PROFILE OF THE ORGANIZATION
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. 6,523 crore 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 6,2 million customers
accounts.
BOARD OF DIRECTORS
BOARD OF DIRECTORS OF KOTAK MAHINDRA
Name Designation
Amit Desai Director
Asim Ghosh Director
Bina Chandarana Exec. Vice President & Co. Secretary
Bina Chandarana Secretary
C Jayaram Joint Managing Director
11. Dipak Gupta Joint Managing Director
Farida Khambata Additional Director
Jaimin Bhatt Group CFO & President
N P Sarda Director
Prakash Apte Director
S Mahendra Dev Director
Shankar Acharya Chairman
Uday Kotak CEO
Uday Kotak Exec. Vice Chairman & Mange Dir
13. Objectives of the study
1) To study in detail about kotak Mahindra bank.
2) To study about productof kotak Mahindra bank.
3) To study services provided by kotak Mahindra bank.
15. ResearchMethodology
It refers to the method adopted to collect the relevant data and other information,
which forms the basis
of the writing. So far the effective writing of the report, the data must be quality
oriented. My research is divided into these stages
STAGE I: Data Source
All the data collected by me is secondary in nature. Raymond’s websites provides
me their product details which help me in making product analysis, company
profile of Raymond and the financial statement for the current year.
The secondary data source that is being utilized in this project are as follows:
The ads in The Times of India.
The material available on the web.
Business magazines.
STAGE-II : ANALYSIS
In this stage all the data is analyzed and the report is being written. Material
collected from various sources is first arranged and then by consulting the project
guide this data is used to prepare report. The data which is secondary in this report
study for the company profile.
16. . .
.
DATA COLLECTION
There are two methods of data collection
( 1 ) P r im a r y D a t a
(2)S ec o nd ary Data
(1) Primary Data
Primary data means first hand information. There are the
following methods of obtaining primary data.
(a)Survey by Questionnaire.
(b )P anel R es earc h.
(c)Observation Approach.
(d)Experimental Research.
17. (2) SecondaryData
There are numerous sources of secondary data. A tedious and time-
consuming library research may give the past desired information. Sources
of secondary data are as under…
(a)Published Survey of Markets.
(b)General Library Research.
(c) Govt. Publications and reports
(d) All advertising media (newspapers, magazines and reports)
HERE I HAVE USED SECONDARY DATA COLLECTION
METHOD
19. PRODUCTS AND SERVICES
New Car Financing.
Used Car Financing.
Personal Loan.
Refinancing.
Insurance Services.
New Car Financing :
It is the financing of new cars and maximum funding is 100 %.
Used Car Financing :
It is for financing the second hand or used cars and the maximum
funding available is 80 %.
Personal loan :
Only existing customers can avail this facility. Those customers who
paid over rage half of the total installments and did not make default in the
payments of EMI will get personal loans.
Refinancing :
If the customer is a good customer and does not have a background
of committing defaults, he will get refinancing facility after the payment of
loan or when the hypothecation is over.
20. Insurance :
This is a service by Kotak to its own customers and others also. Kotak works
as an intermediary or an agent between the client and the insurance company.
Kotak has tie up with 3 insurance companies. They are HDFC CHUBB , Royal
Sundaram , and Oriental Insurance. Through this service the non-customers of
Kotak will become its customers. For the customers it makes the processing
very easy not only at the time of opening the insurance but also when the case
of claim occurs. Kotak gets commission for this service. It collects premium
from customers and pay it to the insurance company. This service is for cars as
well as for the two-wheelers also.
KOTAK MAHINDRA PRIME LIMITED
Kotak Mahindra Prime Limited is a subsidiary of Kotak Mahindra Bank Limited
primarily formed to finance all passenger vehicles. KMPL is India’s largest car
finance company. The company is dedicated to financing and supporting the
automobile form of loan for the entire range of passenger cars, multi utility
vehicles and pre-owned cars. The company also offers inventory funding and
infrastructure funding to car dealers. KMPL has preferred financer relationship
with the various car manufacturers in India such as General Motors, Honda,
Hyundai, Maruti, Toyota , M & M etc. KMPL has a robust delivery platform
which is critical for a sustained growth.
21. PRODUCT PROFILE
Kotak Car Finance is one of the big player in the area of car finance. They extend
finance to all models of cars. Kotak group extends finance to all cars through their
company, KMPL.
Types of Services
KMPL has different types of services like:
1. Car Finance.
2. Dealer Finance.
3. Inventory Funding.
CAR FINANCE
KMPL offers a very flexible scheme to suit our needs, a hassle free documentation
and quick processing. This causes the company’s relations with the car
manufacturers to give the maximum benefit of the most attractive deals in the
market.
“our commitment is to get you into the driver’s seat quickly while giving you some
really smart options to choose from”
KMPL offers:
the widest range of new and pre-owned cars.
Attractive interest rate.
22. Flexible schemes.
Speedy loan processing.
New Car Finance
The company offers loans up to 90 % of the ex-showroom price and flexible
repayment theories as per the customer’s convenience.
Margin money scheme
The company provides finance for the acquisition of new cars up to 90% of the
invoice value for certain models. The customer should pay the margin money
(invoice value minus the finance amount) to the dealer directly. He also has an
option to pay the margin of KMPL upon which we would release the entire invoice
value to the dealer.
Set up scheme.
Increase in EMI after every year, 6 months or quarterly( depending upon
your needs )
Best suited for the people who want luxury car experience.
Make payment on time with your growing income ( starting with low EMI’s
in the early period of repayment)
23. Low EMI , Balloon Scheme.
10%-25% of the cost of the car to be paid as last EMI.
Reduced EMI for the entire tenure.
Best for customers who want to dispose off their vehicle at the end of the
tenure and are looking at affordable EMIs during the tenure.
Advance EMI Scheme
Make the payments of few monthly installments upfront.
Balance payable through EMIs.
Repay your loan much faster with the advance installments.
Used Car Finance
Owning a car can be a simple, easy and reliable experience with KMPL used car
finance. The company offers up to 90% funding of the car value. The customers
may also avail finance against your existing car.
Pre-approved Loan
Low ticket size loans:
24. Loan amount up to 1.5 lacs.
Minimum documentation.
Preferred Segment Loan
Loan amount between 1.5 – 15 lacs.
Hassle free processing.
Funding up to 85% with maximum tenure of 60 months.
Approve your own loan
For salaried employees:
A monthly installment equals 40 % of net salary.
Loan amount equals up to 3 times of your annual salary.
Cash against your car.
Avail this loan by pledging your existing car which is free from any loan/
hypothecation.
Takeover of your existing car loan and generate cash
It’s a loan taken over from the bank where the foreclosure amount is lesser than
what KMPL actually funds on the assets. That is how the cash is generated and the
customer gets more than 100% finance.
25. # Dealer Finance
KMPL has vast experience in providing comprehensive solution to the wholesale
funding requirement of over 125 automobile dealers across the various
manufacturers. KMPL offers superlative experience to automobile dealers by
catering to their entire spectrum of financial requirement through ‘Single Window’
. This result in better response time to KMPL’s esteemed customers.
The various financial options available to the KMPL customers are:
Inventory Funding
Project Funding – Term Loans.
Setting up of CC/BG/LC through Kotak Mahindra Bank Limited.
KMPL also offers value added services such as Dealer Finance Restructuring and
Specific Advisory Services to Dealers.
Term Loan Options
Term loan is available to automobile dealers for setting up of new dealership
expansion / renovation of showroom / workshop / supplementary working capital
requirement.
26. Equipment term loan is available to automobile dealers for purchasing the
equipments for their service centre.
Amortizing term loans is available to automobile dealers for purchasing the
properties for the business expansions and new dealerships.
Working capital term loan is available to automobile dealers to find core working
capital / supplement the working capital requirements.
# Inventory Funding
Inventory Funding is available to automobile dealers to finance the working
capital requirement.
Retail linked trade Advance:
Dealer inventory funding facility is linked to retail business source through
dealership counter. It is unsecured / semi-secured advances. Generally the
exposure is capped at Rs. 1 crore based on the dealer’s working capital
requirement and credit assessment.
Wholesale finance facility:
It is a semi secured advance available to automobile dealers and is linked with the
Retail business. The maximum exposure under this is Rs. 5 Crore based on the
dealers working capital requirement and credit assessment.
27. Floor Finance / Single Payment Gateway Plan:
This caters to the entire working capital requirements. The facility is similar to the
Cash Credit / Over Draft products of banks. The credit exposure is based on the
dealers working capital requirement of credit assessment. Under this products,
KMPL is the exclusive financier for inventory funding needs of the dealership.
Criteria for applying loan through KMPL
The following is the list stating the person, trust or companies who can avail loan
from KMPL :
Salaried individuals in the age group of 21 years – 65 years.
Self employed individuals in the age group of 21 years – 65 years.
Partnership Firms
Public and Private Limited Companies.
HUF’s and Trusts.
Salaried Individuals
Eligibility criteria:
Minimum age of applicant must be 21 years.
Maximum age of applicant at the time of loan maturity is 65 years.
Minimum income should be at least Rs. 1, 00, 000 per annum.
Minimum employment of 6 months.
28. Documents required.
Identity proof - passport, PAN card, election ID card or license.
Income Proof – latest salary slip with form 16.
Address proof - ration card, license, ID card, passport, phone bill or PAN
card.
Salary Bank Statement.
Self Employed
Eligibility Criteria
Minimum age of the applicant must be 21 years.
Maximum age of applicant at the time of loan maturity must be 65 years.
Minimum employment – at least 2 years in business.
Documents Required.
Identity proof - passport, PAN card, election ID card or license.
Income Proof – latest ITR
Address proof - ration card, license, ID card, passport, phone bill or PAN
card.
Business Bank Statement
Application Process.
The process of applying loan in KMPL is a 7 steps process. The steps involved
are:
29. 1. Getting Information :
The prospect can get the information on KMPL in a number of ways .
this includes :
Send Mail to marketing@kotak.in
Visit KMPL or call up any Branch Office.
Apply on-line.
Can send SMS CF < followed by name of your city > at 5675788.
2. Receiving KMPL office :
Kotak offers tailor made schemes based on the customer needs and they are
free to Choose from the schemes made available.
3. Documentation :
Once the vehicles, product and scheme are finalized it will be fine for us to
initiate the process of making finance available to the customers as soon as
possible. In order to process the loan the application smoothly, the previously
mentioned statements of the customers are essential.
4. Credit Evaluation :
A field investigation officer will visit the customer for additional information
that will help the company to process the customer’s loan. A KMPL credit
officer will evaluate the customer’s proposal based on the documents submitted
30. by the customer along with the FI report.
5. Processing of finance :
After the credit approval, the company will enter into an agreement with the
customer and collect the post dated cheques and ECS mandate.
6. Delivery of Car :
The time has finally arrived at this step, since at this point of time the customer
can take the delivery of their own car.
7. Recovery Agreement :
At the time of delivery, the customer must ensure that he collects the invoice
from the dealer. Usually registration takes minimum 9 days to 10 days hence
the customers are expected to follow up with their dealer / DSA for the receipt
of the same. The customer must also make sure that the vehicle is insured under
comprehensive insurance plans giving the during the loan period. The company
will send the agreement copy and repayment schedule to the customer at their
correspondence address within 15 days of the loan disbursal.
32. HISTORY OF KOTAK MAHINDRA BANK
Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s
leading financial services conglomerates. In February 2003, Kotak Mahindra
Finance Ltd. (KMFL), the Group’s flagship company, received a banking license
from the Reserve Bank of India (RBI). With this, KMFL became the first non-
banking finance company in India to be converted into a bank – Kotak Mahindra
Bank Limited (KMBL).
In a study by Brand Finance Banking 500, published in February 2014 by the
Banker magazine (from The Financial Times Stable), KMBL was ranked 245th
among the world’s top 500 banks with brand valuation of around half a billion
dollars ($481 million) and brand rating of AA+.[2] [3] KMBL is also ranked among
the top 5 Best Ranked Companies for Corporate Governance in IR Global
Ranking.
Year Milestone
1986 Kotak Mahindra Finance Limited commences bill discounting business
1987 Kotak Mahindra Finance Limited enters leasing and hire purchase business
1990 Starts the auto finance division for financing passenger cars
1991 Launches investment banking business
1992 Enters the funds syndication business
1995
Commenced joint venture with Goldman Sachs Group Inc.
Investment Banking division incorporated into a separate company - Kotak
Mahindra Capital Company
33. 1996
The auto finance business is hived off into a separate company - Kotak
Mahindra Prime Limited (formerly known as Kotak Mahindra Primus
Limited).
Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra
Limited, for financing Ford vehicles.
1998
Launches mutual fund through Kotak Mahindra Asset Management
Company (KMAMC).
2000
Kotak Securities launches online broking business (now
www.kotaksecurities.com [5]).
2001
Launches insurance business, partners Old Mutual plc to form Kotak
Mahindra Old Mutual Life Insurance Ltd.
2003
Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company,
receives banking license from the Reserve Bank of India (RBI). With this,
KMFL becomes the first non-banking finance company to be converted into
a commercial bank - Kotak Mahindra Bank Ltd.
2004 Enters alternate assets business with the launch of a private equity fund.
2005
Kotak Mahindra Group realigns joint venture in Ford Credit; takes 100%
ownership of Kotak Mahindra Prime (formerly known as Kotak Mahindra
Primus Limited) and sells its stake in Ford credit Mahindra to Ford.
2005 Launches a real estate fund
2006
Buys out Goldman Sachs' equity stake in Kotak Mahindra Capital Company
and Kotak Securities Ltd.
2008 Launched a Pension Fund under India's National Pension System (NPS)
2009
Kotak Mahindra Bank Ltd. opens a representative office in Dubai
Kotak Mahindra Bank Ltd. becomes anchor investor in Ahmedabad
Commodities Exchange (ACE)
34.
35. VISION
The vision of KMPL is:
The Global Indian Financial Services Brand | Our customers will enjoy the benefits
of dealing with a global Indian brand that best understands their needs and delivers
customized pragmatic solutions across multiple platforms. We will be a world
class Indian Financial service group. Our technology and best practices will be
benchmarked along international lines while our understanding of customers will
be uniquely Indian. We will be more than a repository of our customers’ savings.
We, the group, will be a single window to every financial service in customer’s
universe.
The most preferred employer in financial services | A culture of empowerment and
a spirit of
enterprise attracts bright minds with an entrepreneurial streak to join us and stay
with us. Working with a home-grown, professionally- managed company, which
has partnership with international leaders, gives our people a perspective that in
universal as well as unique.
The most trusted financial services company | we will create an ethos of trust
across all our constituents. Adhering to high standards of compliance and corporate
governance will be an integral part of building trust. Value Creation | Value
Creation rather than size alone will be our business driver.
36. COMPETITOR ANALYSIS
The industry holds a number of efficient and eminent competitors. The major
competitors involves:
ICICI Bank.
HDFC Bank.
Reliance Capital Limited.
Axis Bank .
State Bank Group.
Mahindra Finance.
Co-operative Bank.
KSFE.
Sundaram Finance.
South Indian Bank Limited.
The financial status of various competitors are :
Tab 2-2 COMPETOTOR’S STATUS
37. Name Last Price MarketCap.
(Rs. cr.)
Net Interest
Income
Net Profit TotalAssets
HDFC Bank 891.55 215,248.89 41,135.54 8,478.40 491,599.50
ICICI Bank 1,605.85 185,902.85 44,178.15 9,810.48 594,641.60
Axis Bank 425.55 100,435.93 30,641.16 6,217.67 383,244.89
Kotak Mahindra 1,079.95 83,300.28 8,767.12 1,502.52 87,585.34
IndusInd Bank 692.35 36,594.82 8,253.53 1,408.02 87,025.94
Yes Bank 638.30 26,592.96 9,981.35 1,617.78 109,015.79
Federal Bank 139.05 11,898.77 6,946.08 838.89 74,594.14
ING Vysya Bank 623.55 11,856.37 5,205.22 657.85 60,413.23
JK Bank 138.60 6,719.02 6,767.00 1,182.47 78,619.73
Karur Vysya 541.65 6,546.16 5,115.96 429.60 46,733.35
City Union Bank 81.40 4,850.80 2,545.93 347.07 24,993.82
South Ind Bk 27.65 3,727.03 5,015.07 507.50 54,985.98
DCB Bank 89.40 2,513.98 1,128.26 151.36 12,923.13
Karnataka Bank 117.50 2,214.35 4,188.83 311.03 47,028.80
Lakshmi Vilas 75.65 1,353.09 1,983.95 59.66 20,653.05
StanChart IDR 95.30 1,143.60 - - 121,685.51
Dhanlaxmi Bank 45.30 803.81 1,291.95 -251.91 14,687.58
Goldman BEES 2,486.75 255.15 - - -
39. Kotak
Mahindra
HDFC
Bank
ICICI
Bank
Axis Bank
IndusInd
Bank
Mar '14 Mar '14 Mar '14 Mar '14 Mar '14
Capital and Liabilities:
Total Share Capital 385.16 479.81 1,155.04 469.84 525.64
Equity Share Capital 385.16 479.81 1,155.04 469.84 525.64
Share Application Money 8.53 0.00 6.57 0.00 11.02
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 11,889.93 42,998.82 72,051.71 37,750.64 8,506.30
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 12,283.62 43,478.63 73,213.32 38,220.48 9,042.96
Deposits 59,072.33 367,337.48 331,913.66 280,944.56 60,502.29
Borrowings 12,895.58 39,438.99 154,759.05 50,290.94 14,761.96
TotalDebt 71,967.91 406,776.47 486,672.71 331,235.50 75,264.25
Other Liabilities & Provisions 3,333.82 41,344.40 34,755.55 13,788.89 2,718.73
TotalLiabilities 87,585.35 491,599.50 594,641.58 383,244.87 87,025.94
Kotak
Mahindra
HDFC
Bank
ICICI
Bank
Axis Bank
IndusInd
Bank
Mar '14 Mar '14 Mar '14 Mar '14 Mar '14
40. Assets
Cash & Balances with RBI 2,948.23 25,345.63 21,821.83 17,041.32 4,413.92
Balance with Banks, Money at
Call
3,031.66 14,238.01 19,707.77 11,197.38 2,355.53
Advances 53,027.63 303,000.27 338,702.65 230,066.76 55,101.84
Investments 25,484.55 120,951.07 177,021.82 113,548.43 21,562.95
Gross Block 1,106.94 2,939.92 4,678.14 2,310.54 991.26
Accumulated Depreciation 0.00 0.00 0.00 0.00 0.00
Net Block 1,106.94 2,939.92 4,678.14 2,310.54 991.26
Capital Work In Progress 0.00 0.00 0.00 99.67 25.19
Other Assets 1,986.33 25,124.60 32,709.39 8,980.79 2,575.25
TotalAssets 87,585.34 491,599.50 594,641.60 383,244.89 87,025.94
Contingent Liabilities 46,903.54 744,097.98 794,965.35 611,446.37 153,578.83
Bills for collection 0.00 0.00 0.00 0.00 0.00
Book Value (Rs) 159.35 181.23 633.92 813.47 171.89
Balance Sheet
42. SWOT ANALYSIS
Kotak Mahindra Bank
Parent Company Privately owned bank
Category Banking Services
Sector Banking and finance
Tagline/Slogan Let’s make money simple
USP Professionalism in Banking
STP
Segment Individual and Industry banking
TargetGroup Investment Sector
Positioning Complete Banking solutions
SWOT Analysis
Strength
1. Innovative financial products ofdiverse 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
Weakness
1. Lesser penetration as being late entrants
2. Low publicity and marketing as compared to other
premium banks in the urban areas
43. Opportunity
1. Increase in Industry banking
2. Explore opportunities abroad by International banking
Threats
1. Economic slowdown
2. Highly competitive environment
3. Stringent Banking Norms
Competition
Competitors
1. Axis bank
2. Union Bank of India
3. Federal bank
45. It is said that ‘Nothing is perfect’ and if the quote is true I am sure that there
would few shortcomings in this project also. Sincerely efforts have been made to
eliminate discrepancies as far as possible but few would have been remained due to
limitations of study.
Although the project has been the worked out at its best yet there are certain
limitation which cannot be overlooked. Had these limitations been overcome, the
findings would be accurate
Some of these limitations are;
1-TIME CONSTRAINT –time was really a limiting factoring the project. It’s
really difficult to work out such a large project between two months time.
2-DATA CONSTRAINT- all the data that has been collected for the project has
been taken from secondary sources like websites, magazines, newspapers and
books.
However, every effort is made to ensure that these do not in any way adversely
affect the result of the study and inject an element of objecting
3- BIASNESS - project may show biasness towards one product or another as all
the data had been taken from secondary sources and it is possible that the persons
who had done original research might be biased about product or company
47. SUGGESTIONS
1. Focus strategic plan on growth
Kotak Mahindra bank have to make strategic plans, which are usually required by
regulators. But more importantly, strategic plans are effective tools for guiding
management and providing the board of directors with an effective way to assess
management and their ability to meet strategic goals. Now that many companies
are shifting from survival mode to seizing opportunities in an improving economy,
banks should develop.
2. Examine an acquisition
In order to grow quickly kotak Mahindra bank must look to acquire new profitable
firms. if they decide to move forward with an acquisition, postacquisition
activities are just as important as pre-acquisition preparations in helping to insure a
smooth transition and long term success.
3. Implement smart tax strategies and Structures
Banks should review their state and local tax positions, examine recent rules that
affect the jurisdictions where they pay the most tax, and consider new ideas for
dealing with these changes. Incentive credits that apply to banks should be
implemented in all applicable jurisdictions
4. Develop new service offerings
Banks can no longer rely on old methods of making profits. Developing new
services and maximizing the reach of existing services are essential.
* Explore opportunities presented by health care reform. According
to the Healthcare Information and Management Systems Society, these
range from processing provider claims and transactions to adapting
48. Mobile banking technology to handle electronic health records.
• Increase cross-selling to existing customers, especially high-wealth
individuals with whom the bank has established relationships.
• Re-emphasize services and customers that were neglected during the
downturn, e.g., credit cards.
5 . Send the right message with social media
. Social media is a powerful communications vehicle with international reach.
According to a recent survey conducted by Grant Thornton LLP and Financial
Executives Research Foundation, Social media and its associated risks, more than
half (53%) of respondents see corporateuse of social media increasing
significantly over the next 12 months. Yet more than three-quarters (76%) of
respondent companies do not have a clearly defined social media policy
50. Throughout the project gives tremendous information about uday kotak and
products and services of Kotak Mahindra bank. This project helps us to know how
kotak Mahindra bank establish themselves as one of leading financial institution in
india and globally. In 1985 uday kotak established kotak Mahindra group . In
February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship
company, received a banking license from the Reserve Bank of India (RBI). With
this, KMFL became the first non-banking finance company in India to be
converted into a bank – Kotak Mahindra Bank Limited (KMBL).
In a study by Brand Finance Banking 500, published in February 2014 by the
Banker magazine (from The Financial Times Stable), KMBL was ranked 245th
among the world’s top 500 banks with brand valuation of around half a billion
dollars ($481 million) and brand rating of AA+.KMBL is also ranked among the
top 5 Best Ranked Companies for Corporate Governance in IR Global Ranking.
As on June 30, 2014, Kotak Mahindra Bank has over 600 branches and over 1,100
ATMs spread across 354 locations in the country.
