A PowerPoint presentation on BFSI sector on Kotak Mahindra Bank

1. Final project
Presentation
Div yes h Trived i
PGDM 2
DM23B18
2023 2505 0001 0020

2. 2023 2505 0001 0020
10/2024
DIVYESH SATISH TRIVEDI
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3. Executive Summary
 From this project I have came to
learn about the BFSI sector in
detail.
 Also I have came to know about
HRM, Finance, Marketing.
 In marketing I have done SWOT,
PESTLE, STP, BCG.
 In finance I have done analysis of
balance sheet, P&L, Cash Flow.
 In HRM I have done On
boarding process of employee,
design JD, various benefits.
F i n a l p r o j e c t a n d p r e s e n t a t i o n
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4. Sector
Definition
BFSI sector
is a one among the different industries
in a country. It defines as Banking, Financial
Services and Insurance. It is a broader term which
defines all the companies that provide services
related to finances.
F i n a l p r o j e c t a n d p r e s e n t a t i o n
02
Component
Banking
Financial Service
Insurance

5. GDP Contribution CAGR GROWTH FORECAST
Banking: CAGR of
10.4% in 2023-2027
BFSI sector
contributes
9.2% in GDP
Financial services:
CAGR of 14.97% in
2020-2027
Insurance: CAGR of
10.3%
BFSI sector is
expected to
grow at 16%
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6. Sector Growth Factor
F i n a l p r o j e c t a n d p r e s e n t a t i o n
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Public/Private
involvement
Technological
Evolution
Government
Policy
Regulatory
Measures

7. De-growth factor of the sector
& Sub sector
F i n a l p r o j e c t a n d p r e s e n t a t i o n
05
In pre-pandemic banking
showed mixed trend
In post-
pandemic BFSI
slowly stated to
recover
In pre-pandemic
BFSI sector has
been growing at
moderate rate
In post-pandemic
banking started
reflecting growth

8. Top 3 Players in BFSI
 HDFC Bank Ltd: Market share of 9.5%.
Standalone net profit of 44000 crore.
 ICICI Bank has a market share of 7%.
ICICI Bank reported in its standalone
net profit worth Rs 38,000 cr.
 SBI Bank has a market share of 23%.
SBI Bank has reported a net profit of
50,000 cr.
 SBI Bank has a market share of 22% in
banking sector in India. SBI Bank has a
CAGR of 16.3% in 5 years.
 HDFC Bank has a market share of
10.43% in banking sector in India.
HDFC bank has a CAGR of 21% from
FY13-23.
 ICICI Bank has a market share of
6.59% in banking sector in India. ICICI
Bank has a CAGR of 11.9% in 5 years.
F i n a l p r o j e c t a n d p r e s e n t a t i o n
06
Top 3 Players BFSI
(category wise)

9. Bargaining Power of buyers: On the face, it doesn't appear to be a major deal because
a consumer can change banks at any time. still, switching charges are substantial.
Bargaining Power of Suppliers: The central bank, sometimes known as the
bank of banks, is the sole significant supplier.
Contest among Being contenders: The banking sector is veritably competitive. By
offering investment operation services, preferred rates, and reduced backing, banks
try to appeal guests down from other institutions.
Trouble of Substitutes Products: The banking sector has seen the emergence of
multitudinous druthers.
Trouble of New Entrants Medium to High overall entry walls, as RBI & Central
Bank control the allocation of licenses the banking business is largely regulated and
precious to enter.
Porter’s five forces model
07

10. Vision
We're a world class Indian Financial services
group. Our technology and stylish practices are
bench- marked along transnational lines while
our understanding of guests will be uniquely
Indian. We’re further than a depository of our
customers savings.
F i n a l p r o j e c t a n d p r e s e n t a t i o n
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Value
 Down to earth and approachable
 Collective Respect and translucency
 Passion to achieve Entrepreneurial
approach
 Ethical with governance mindset

11. S
W
O
T
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12. Share holding pattern
F i n a l p r o j e c t a n d p r e s e n t a t i o n
10
Promoters 25.95%
FIIs 39.42%
DIIs 21.31%
Public 13.30%
No. of shareholders 5,82,733
Overall CAGR of Kotak Mahindra Bank is 19.3% in last 5 years.

13. 4 P’s
Product:
 Personal Loans
 Kotak Mahindra Cards
 Deposit Account
 Insurance and
Investment
 Convenience Banking
Pricing:
The company has a
unique way of pricing
because it depends upon
both low and high rates
depending upon the
client’s type and need of
products or service. It
also adopts an affordable
pricing strategy that's
useful for both corporates
as well as guests.
Place And Distribution:
Strategy Kotak
Mahindra’s origin is
present in Mumbai
Maharashtra. It also has a
global presence in
countries like Singapore,
Dubai, New York, and
numerous other
transnational countries.
Promotion: It offers
doable, accessible,
options for its guests as
their tagline says to make
plutocrat simple. They
turned twenty- five times
old in 2010, on the
occasion it launched a
‘immature 25 times’
crusade. 11

14. SWOT Analysis of Kotak Mahindra Bank
12

15. 14
STP of Credit Card
Segmentation
Targeting
Positioning
Segmentation: Factors of segmentation are:
 Demographic: Youth professionals, high
income individualities, or scholars.
 Psychographics: Frequent trippers,
interested in cashback prices.
 Behavioral: Frequent trippers, online
shoppers, individuals looking for low
interest rates.
 Geographic: Urban, Suburban.
Targeting:
 Young Professionals
 High income individualities
 Students
 Frequent Trippers
Positioning:
 Platinum card: High income
individualities
 Student Edge card: Studently friendly
card, low interest rates, cashback on
educational charges.
 Travel prices cards: Go to choose
trippers emphasizing benefits like trip
insurance.
 Cashback cards: Positions it as smart
shoppers

16. 15
POLITICAL INFLUENCE
OF FACTORS
Average
Rating
weight
corrected
score
ECONOMIC INFLUENCE
OF FACTORS
Average
Rating
weight
corrected
score
1-----3 1 2 3 1-----3 1 2 3
1 Focus on regulation on government 2 3 3 3 3 1.2 1 Monetary policy 2 3 3 3 3 0.545455
2 Budget & Budget measures 2 4 4 4 4 1.6 2 GDP 2 4 2 4 3.33333333 0.606061
3 Foreign direct investments limit 1 3 2 2 2.33333333 0.466667 3 Interest Rates 3 3 4 3 3.33333333 0.909091
4 4 Inflation rates 2 2 3 2 2.33333333 0.424242
5 5 Saving and investments 2 4 2 3 3 0.545455
6 5 0.653333 18 11 0.606061
7 20
8
9 SOCIOLOGICAL INFLUENCE
OF FACTORS
Average
Rating
weight
corrected
score
TECHNOLOGICAL INFLUENCE
OF FACTORS
Average
Rating
weight
corrected
score
10 1-----3 1 2 3 1-----3 1 2 3
11 Change in lifestyle 2 4 3 4 3.66666667 1.466667 1 UPI Automated Teller Machine 2 3 4 4 3.66666667 1.222222
12 Population 1 3 2 2 2.33333333 0.466667 2 Bhasini 2 4 3 2 3 1
13 Literacy Rate 2 2 3 2 2.33333333 0.933333 3 It services & Mobile banking 2 3 3 3 3 1
14 Total 5 0.573333 6 0.537037
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17 LEGAL INFLUENCE
OF FACTORS
Average
Rating
weight
corrected
score
ENVIRONMENTAL INFLUENCE
OF FACTORS
Average
Rating
weight
corrected
score
18 1-----3 1 2 3 1-----3 1 2 3
RBI act 2 4 3 3 3.33333333 1.666667 1 Monsoon Pattern Highly irregular 1 2 3 2 2.33333333 2.333333
IRDA act 2 3 4 2 3 1.5 0
4 0.791667 1 2.333333
Expert reviewier(Probabilty of changing
factor on a scale from 1-5)
Expert reviewier(Probabilty of changing
factor on a scale from 1-5)
PESTEL ANALYSIS OF BFSI sector
Expert reviewier(Probabilty of changing
factor on a scale from 1-5)
Expert reviewier(Probabilty of changing
factor on a scale from 1-5)
Expert reviewier(Probabilty of changing
factor on a scale from 1-5)
Expert reviewier(Probabilty of changing
factor on a scale from 1-5)

17. FINANCIAL
STATEMENTS
ANALYSIS
Analysis of Income statement:
 Lower than industry revenue growth: Over the
last 5 years, the revenue has grown at yearly
rate of 11.91% vs industry avg. of 12.02%.
 Lower than industry Net income: Over the last
5 years, net income has grown at a yearly rate
of 19.2% vs industry average of 23.09%.
 Increasing market share: Over the last 5 years,
market shares increased from 8.72% to 8.75%.
Analysis of Cash flow:
 According to above cash flow we
can see that net change in cash is
negative means cash outflow is more
than cash inflow in year 2023 as
compared to year 2022.
 Also, we can see that capital
expenditure is also increasing year
by year. So, we can assume that cash
is more used in investing activities.
Analysis of Balance sheet:
 Higher than industry
current ratio: Over the last 5
years current ratio has been
16.9% vs industry average
of 11.87%.
16

18. Dividend Policy
 The board of directors of the bank at their
meeting held on 29th April 2023 recommended a
dividend of 1.5 per equity share for FY 2022-23.
 The dividend is approved by the members would
entail a payout of approximately 298 crores
based on the capital as of 23rd
June,2023(Previous Year 218.4 crore).
 The dividend would be paid to all equity
shareholders, whose names would appear in the
Register of Members on the record date fix for
this purpose i.e., 4th August 2023.
 Further board of directors of the bank at their
meeting held on 17/18th March 2023 declared an
interim dividend on PNCPS of the face value of
5/- each issued by the bank, carrying a dividend
rate of 8.1% pa in respect of 2022-2023, as per
the terms of issuance of PNCPS.
Depreciation Policy
 Depreciation / Amortisation - Depreciation is
provided on a pro-rata basis on a Straight-Line
Method over the estimated useful life of the
assets at rates which are equal to or higher than
the rates prescribed under Schedule II of the
Companies Act, 2013 in order to reflect the
actual usage of the assets.
 Used assets purchased are depreciated over the
residual useful life from the date of original
purchase. Items costing less than 5,000 are fully
depreciated in the year of purchase.
17

19. PE RATIO AND CREDIT RATING ( LONG AND SHORT TERM )
Company PE ratio
Kotak Mahindra Bank 23.22
HDFC bank Ltd 24.82
ICICI bank Ltd 19.14
Axis Bank Ltd 27.47
 High PE ratio means stock price is high and its price may fall in future.
 A low PE ratio means stock is cheap and prices may rise in the future.
 In the above comparison Axis bank has high PE ratio in comparison with others.
 And Kotak Mahindra bank PE ratio is not that much high as comparison with Axis bank or HDFC bank.
PARTICULAR CRISIL
Short term rating A-3
Long term BBB-
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20. Balance sheet common size statement
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21. Balance sheet comparative size statement
20

22. P&L common size
21

23. P&L comparative
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24. Cash Flow Comparative
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25. Macro economic factor that affect stock prices
F i n a l p r o j e c t a n d p r e s e n t a t i o n
Political Factors
Interest Rates
Supply And
Demand
Natural
disasters
Inflation
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26. RATIOS
F i n a l p r o j e c t a n d p r e s e n t a t i o n 25
2022 2023
Current Ratio Current Asset / Current Liability 4.48 4.67
Net profit Margin PAT/Net sales*100 35.36 35.06
Operating Profit EBIT/Net sales*100 -39.65 -26.59
Return on Asset (%) PAT/Total Asset*100 2.21 2.4
ROCE (%) EBIT/Capital employed*100 3.25 3.41
Debt to equity Long term debt/Shareholder's fund 0.56 0.508
Debt to asset Long Term debt/Total Long-term asset 0.91 1.009
Proprietary fund Proprietary Funds/Total long-term assets 0.024 0.027
Interest coverage EBIT/Interest 1.03 1.02

27. F i n a l p r o j e c t a n d p r e s e n t a t i o n 26
Recruitment and selection process at Kotak Mahindra
bank:
 Positions listings
 Recruitment targets
 Job descriptions
 Interview scheduling
 Tracking candidates
 Obtaining CV
 Short listing CV
 Line Interview
 HR interview
 PI test and CIBIL check
 Reference Check
 Selection Decisions
 Date of joining
 Receive of offer letter
 Joining Process
 Induction training

28. J
D
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29. ON-BOARDING
FACILITIES AT KOTAK
MAHINDRA BANK ON-BOARDING
FORMALITIES
Welcome Kit
Meeting with HR
Overview
Compliance and
employee policy review
F i n a l p r o j e c t a n d p r e s e n t a t i o n
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30. F i n a l p r o j e c t a n d p r e s e n t a t i o n
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Sales leadership
framework
Leadership transformation
program
Informal coaching
and mentoring
Session with top
leadership
Transition from Mid
management
Learning and
development
programs
CANDIDATE
ENGAGAMENT AT
KOTAK MAHINDRA
BANK: Few flagships
program

31. F i n a l p r o j e c t a n d p r e s e n t a t i o n
30
Insurance
health
and
wellness
Financial
Retirement
Family
and
parenting
Vacation &
Time off
Perks &
Benefits
Professiona
l support
Employee benefits at Kotak Mahindra Bank

32. 31
Organizational structure of Kotak Mahindra Bank

33. THANK YOU
F i n a l p r o j e c t a n d p r e s e n t a t i o n
~ DIVYESH TRIVEDI