Kotak Report for College

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Project Report On

Kotak Mahindra Bank



Reason and Circumstances that led

to select Kotak Mahendra Bank I always prefer to work in a finance institution, one of the first and the

foremost objective of me is to get in to finance sector. That‟s the main reason which

initiated me to do specialization in finance right from my graduate to post graduate.

Among banking sector, Kotak Mahindra Bank Limited is one of the leading financial

institutions, offering a complete financial solution that encompasses every spare of the

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

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

corporates.

The group has a net worth of over Rs. 2900 crores, employs around 8,800peoples in its various business and has a distribution network of branches, franchisees,

representative offices and satellite offices across 282 cities and towns in India and

offices in New York, London, Dubai and Mauritius. The group serves around 2

million customer accounts.

“Kotak Mahindra Finance Limited is the first financial institution in

India to get converted into a commercial bank”

I was so lucky to get permission for doing my summer internship in Kotak

Mahendra Bank limited, Head office in Mumbai. As it‟s a head office there was a

wide opportunity for me to know about various functions, and process which are

undertaken in a banking business, to observe the organizational behavior in various

circumstances. And there is also wide opportunity for me to get interact with various

professionals.

Scope of Placement

There was a wide scope for me to learn about the organization. As we all

know that Kotak Mahendra Group is a huge network with various departments having

different functions. Hence I got wide scope to study about the various process and

procedures of the organization in different situation. Kotak Mahendra Bank is into

various segments like Corporate Banking, Venture Fund Management, Retail

Liabilities, Lending, Treasury and Investment. Even though i had been placed in

Retail Liability section, still I got wide opportunity to study about all segments

including corporate Banking. I didn‟t get much opportunity for doing any specific

task, but I got full freedom for making my own study. Whatever details I ask, my

guide had always shown initiatives in providing the required information. This helped

me to do my report in the way I wanted it to do. I got much opportunity to interact

with various employees of different job specification, which helped me to study about

the job satisfaction of various employees. Above all I learned how to behave in an

organizational environment.



Brief Profile of the organization

Overview

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

complete financial solutions that encompass every sphere of life. From commercial

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

the group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs. 2,900 crore, employs around 8,800

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

franchisees, representative offices and satellite offices across 282 cities and towns in

India and offices in New York, London, Dubai and Mauritius. The Group servicesaround 2 million customer accounts.

THE JOURNEY SO FAR ...

Kotak Mahendra Group’s 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.



Since then it's been a steady and confident journey to growth and success

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

1990 The Auto Finance division is started

1991 The Investment Banking Division is started. Takes over FICOM, one of

India‟s largest financial retail marketing networks

1992 Enters the Funds Syndication sector

1995 Brokerage and Distribution businesses incorporated into a separate company -

Kotak Securities. Investment Banking division incorporated into a separate

company - Kotak Mahindra Capital Company

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

Mahindra Prime Limited (formerly known as Kotak Mahindra Primus

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

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

Information Services Limited marks the Group‟s entry into information

distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.

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

Kotak Securities launches its on-line broking site (now

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

setting up of Kotak Mahindra Venture Capital Fund.

2001 Matrix sold to Friday CorporationLaunches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to a commercial bank – the first Indian

company to do so.

2004 Launches India Growth Fund, a private equity fund.

2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra

Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford

credit Kotak Mahindra.

Launches a real estate fund



Our Corporate Identity

The symbol of the Infinite Ka reflects our

global Indian personality. The Ka is uniquely

Indian while its curve forms the infinity sign,

which is universal. One of the basic tenets of

economics is that man’s needs are unlimited.

The Infinite Ka symbolizes that we have an

infinite number of ways to meet those needs.



From the above picture we can clearly see that how wide Kotak Mahindra

Group is been spread all over India

During their 25 years of services Kotak Mahindra Group is been continuouslytaking initiatives is expanding their business, which also creates many

employment opportunities. Kotak is also planning to recruit around 2,500

employees per year. This clearly shows the sign of growth. Therefore we can

soon expect few more dots on the above shows image of “Wide National

Footprint…”



Kotak Group Companies

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. It‟s banking

operations offers a central platform for customer relationships across the group‟s

various businesses. The bank has a presence in the 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 and a Primary Dealer (PD) approved by the RBI. KMCC's core business areas

include Equity Issuances, Mergers & Acquisitions, Structured Finance and AdvisoryServices, Fixed Income Securities and Principal Business.

Kotak Securities

Kotak Securities Ltd., is one of India's largest brokerage and securities distribution

house in India. 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 co-ordinators. Kotak Securities Ltd. offers online (through

www.kotaksecurities.com) and offline services based on well-researched expertise

and financial products to the 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 (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF).

KMMF manages funds in excess of Rs 11,000 crores 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.

http://www.kotaksecurities.com/





Vision statement – To establish

ourselves as

Global Indian financial services brand: Our customers will enjoy the

benefit of dealing with a Global Indian Financial Brand that best understands the

needs and delivers customized pragmatic solutions across multiple platforms. We will

be a world class Indian Financial services group. Our technology and best practices

will be benchmarked along international lines while our understanding of customers

will be uniquely Indian. We will be more than a repository of our customer‟s saving.

We, the group, will be a single window to every financial services in a customer‟s

universe

The most preferred employer in financial services: A culture of

empowerment and a spirit of enterprise attract bright minds with an entrepreneurial

streak to join us and stay with us. Working with a home grown and professionally

managed company, which has partnership with international leaders, gives our people

a perspective that is universal and unique.

The most trusted financial services company: We shall 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 rather than size alone will be our business driver

ViewsThe vision statement clearly motivates the company. It clearly shows that

where the company wants to be in the next few years. However various missions and

goals have to be achieved to reach the vision of the company. Therefore the

management should form their missions and goals in such a way which will take the

company in the track of achieving the vision.The vision statement should be properly communicated to the employees of

the company which will motivate them to achieve their goals. Proper communication

of vision statement will also create awareness to the employee about “The reason to

their existence”

The vision statement of the company clearly describes about their reason for

existence



Business Segment

Corporate BankingCorporate Banking provides a broad range of financial services for

both domestic and International Corporation, Financial institutions and

Government entities. The Bank services includes working capital,

Trade Services, Transactions Banking, Money Market and foreign

exchange services offered to corporate or small and medium

enterprises (SMEs). KMB offers a variety of products from plain

vanilla debts issuances to Asset Backed Securities (ABS), Mortgage

Backed securities (MBS), structured products and loan syndication.

Venture Fund Management The Bank has Co-Sponsored Kotak SCEAF India fund. This has been

setup as a Trust registered with SEBI as a venture capital funds. Indian

Growth Funds (the fund) was set up as a unit fund of Kotak SEAF

India Fund. India Growth Fund has commitment of Rs.707 crores,

from domestic as well as international investors. The fund continues to

be in an active investment mode as at 31st march, 2007. had made

investment in 10 companies This investment are in high growth sectors

of home retail, logistics, home textiles, airlines, light engineering lifescience and software and information technology.



Retail LiabilityThis refers to the wide range of products and services targeted at retail

customers and offered to branch customers and other direct banking

channels like telephone banking, internet banking, mobile banking,

direct pay services, payment gateway for online shopping. The product

range also includes global debit card and visa money transfer.

LendingThis includes all the advances and lending operation for commercialvehicles and construction equipments personal loan, home loan,

corporate banking and other lending.

Treasury and investmentsTreasury Operations refers to the use of surplus capital in form of call

money, RBI auctions, and G-Sec yields and so on. The Bank treasuryfocuses on garnering client flows from derivatives and foreign

exchange remittances. Bullion Desk and custodial services are another

area of revenue.



Group Structure



Retail Liability Structure

Organization Structure

Definition : This division would broadly cater to companies (Public Ltd., Private Ltd.,

Partnerships or Proprietorships) with a turnover not exceeding Rs 250 crores. Usually

these companies would be part of the supply chain of large corporates, i.e., vendors to

large corporates or dealers of these large corporates.

The department is headed by Manish Kothari and has operations across India,with four specific manned locations, namely - Mumbai, Delhi, Chennai and

Bangalore. Navin Gupta heads the Western Region and Sanjeev Bhandari heads the

Northern Region.

The details of all the people in the department are given below:

Name Role Location

Manish Kothari Head of Department HO Mumbai

Navin Gupta Region Head West HO Mumbai

Rohin Unwalla RM - West HO Mumbai

Vikash Chandak RM – West HO MumbaiMangesh Dealer Funding All India HO Mumbai

Sanjiv Bhandari Region Head North Delhi

Supriya Rajani RM Delhi

Ajay Bhargava RM Delhi

M. A. Krishnan RM Chennai

Balaji Subramaniam RM / Operations Chennai

Sonal Sinha RM Bangalore

Group Head – Branch

Banking & Retail liability

Products, Processes, &Projects Branch Banking Corporate Salary

BSG, SQ & DirectBanking Acquisition



Products & Services

Banking and Saving

o Saving Accounts

o Deposits

o Cards

o Debit cards

o Demat

o Convenience banking

o Corporate Finance

o Custody Service

o NRI Banking

o Privy League

o Business

o

Salary2wealth

Loans and Borrowings

o Personal Loans

o Car Loans

o Home loans

o Loans against property

o Commercial loans

o Dealer finance

o Kotak Stock Ace



Investments and Insurance

o Life Insurance

o Mutual Funds

o Share Trading

o Structured products

o Gold

o Estate planning

o Wealth Management

o Consumer research

o Investing in IPOs

o Portfolio Management

o New Pension Scheme

Institutional

o Investment banking

o

Institutional equities

o Treasury

o Private equity

o International Business

o Offshore funds

o Reality fund



Views:

The company offers a wide range of products in Banking and Services, Loans

and Borrowings, Investment and Insurance, and Institutional. This provides a more

numbers of choices for the customer to select which will suit them the most. Various

products have been designed in such a way after considering the requirement of thecustomers belonging to different classes. Products are designed to suit the

requirements of both small and large investors. But the factor here to be considered is,

more advertisement should be carried out, so that a proper communication could be

done to the customers about the availability of the various products.

With the help of proper advertisement mode the availability of variousproducts will be easily communicated to the customers. There are many customers

who don‟t even know that kotak offers so much variety of products.

As there are various products offered by kotak, out of those various products

some of them are massive in demand, while the remaining are not in high demand,therefore the company should find out the reason why such products are not in high

demand like other products. So that the appropriate rectification can be done this will

help to increase the sale of all products



Customer types

Personal

o Deposits & Savings

o Investments

o Life Insurance

o Cards

o Convenience Banking

Business

o Current Account

o Loans

o Business Banking Solutions

NRI

o Savings

o

Deposits

o Transfers

o Investment Services

o Home Loan

o Convenience Banking

Privy League

o Personal Banking

o Business Banking

o Investments and Insurance

o Financial Planning

o Privy Insight

o Privileges



Institutional

o Investment Banking

o Institutional Equities

o Treasury

o Private Equity

o International Business

o Offshore Funds

o Reality Funds

Wealth Management

o Equity

o Structure Products

o Private Equity

o Reality Funds

o Family Office Services

o Assets Advisory

o Portfolio Management

Corporate

o Corporate Finance

o Custody Services





Corporate Governance

Board of DirectorsDr. Shankar Acharya, Non-Executive Part-time Chairman

Mr. Uday Kotak, Executive Vice-Chairman and Managing Director

Mr. Prakash Apte

Mr. Amit Desai

Mr. C. Jayaram, Executive Director

Mr. Dipak Gupta, Executive Director

Mr. Asim Ghosh

Dr. Sudipto Mundle

Mr. Narendra P. Sarda

Board Meetings Procedure

1 Scheduling and selection of agenda items for board meetings:

Dates of the board meetings are decided in advance. The board meetings are

convened by giving appropriate notice after obtaining the approval of the Chairman

and the Executive Vice-Chairman and Managing Director. The Board meets at least

once a quarter to review the results and other items on the agenda and also on the

occasion of the annual shareholders‟ meeting. When necessary, additional meetings

are held.

2 The agenda of the board meetings is drafted by the Company Secretary

along with the explanatory notes and these are distributed in advance to the Directors.

Every Board member is free to suggest the inclusion of items on the agenda. All

divisions/departments in the Bank are encouraged to plan their functions well in

advance, particularly with regard to matters requiring discussion/approval/decision in

the Board/Committee meetings.

3 All such matters are communicated to the Company Secretary in advance so

that the same could be included in the agenda for the board meetings.

4 The agenda papers are prepared by the concerned officials of the respectivedepartment and are approved by the Executive Director/s and/or Executive Vice-

Chairman and Managing Director. Agenda papers are circulated to the Board by the

Company Secretary. Additional items on the agenda are permitted with the permission

of the Chairman.

5 To address specific urgent need, meetings are also convened at short notice.

The Board also passes resolution by Circulation on need basis.

6 Minutes of the proceedings of the Board meeting are prepared within 48

hours of the meeting as per the requirement laid down by the Reserve Bank of India.

Draft minutes are circulated to the Chairman for his comments. The minutes of all theCommittees of the Board of Directors of the Bank and the minutes of the meetings of



the Board of Directors of the subsidiary companies of the Bank are placed before the

Board.

7 The quarterly, half-yearly and the annual results for the consolidated entity

and for the Bank stand alone are first placed before the Audit Committee of the Bank

and thereafter the same are placed before the Board of Directors.

8 A Compliance Certificate, signed by the Executive Vice-Chairman and

Managing Director in respect of various laws, rules and regulations applicable to the

Bank is placed before the Board, every quarter.

9 The Bank has put in place a post meeting follow-up, review and reporting

process for the action taken on decisions of the Board. The Company Secretary

submits follow-up Action Taken Report to the Board at each meeting on the

compliance of the decisions/instructions of the Board.

10 During the year under review, seven meetings of the Board of Directorswere held on 12th May 2009, 3rd June 2009, 28th July 2009, 27th August 2009, 27th

October 2009, 21st January 2010 and 5th March 2010. Maximum time gap between

any two meetings was not more than three calendar months. The average duration of

the board meetings held is approximately three hours.



ABOT 'SPiRiT'

The launch of „SPiRiT Service Quality Initiative' has ignited a renewed sense

of service at Kotak. The Spirit of Service is the new mantra that should bring about a

quantum leap in the way operations and interactions happen, creating new benchmarks of Service. And what‟s needed to make it work? Just sticking to the five

pillars of Kotak - the elements that take the spirit of service to great heights.

Knowledge and competence

In order to service our customers best, it‟s most important to know our

company, its processes and products extensively. Further, you need to thoroughlyunderstand your customers and their requirements. What‟s also important is, knowing

what the competitors are doing to cater to them. With changing times, markets

change, technologies change and so do customer needs. If you understand your risks

and profitability‟s and have your finger on the pulse of the market, you're a step ahead

of the competition. If you don't, you run the risk of getting blind-sided.

Well Trained & Certified staff with a real-time sense of the market and aware

of the regulatory requirements, willing to take initiative to execute ideas with the tools

at hand and an eye for details, go a long way to make a company successful.

Offering innovative and proactive solution

More successful people are more observant, think more and innovate. They

understand / anticipate customer needs and offer them practical and deliverable

solutions across Group Products.

When you take responsibility and exceed customer expectations by serving as a single

window for need fulfillment, stated or unstated, at no extra cost or delay to him, a

customer is delighted. Such customers are not just loyal customers; they also become

your most dedicated and effective salespersons and advertisers.

Transparency and being fair

Another important aspect leading to customer delight is being transparent and

fair. The customer should always be made aware of the cost and stay informed of all

the charges (there should be no hidden charges). Also what‟s important is not

committing beyond what‟s possible. And in case there‟s ever a mistake, own up to it

and commit immediately.



Approachability and warmth

While addressing the customer needs, it‟s important to make him feelwelcome. Pick up the phone on three rings - yours and others‟ too, be more personal,

address the customer by name and always wear a smile on your face.

You must also speak the customer‟s language and listen to him without interrupting in

order to understand his needs. Always understand the customer as an individual and

balance customer and organization interest. Since serving customers and making them

come back does not simply mean, satisfying them. Instead, you need to delight them.

And to delight means to cater even to unstated customer needs, by anticipating them,

by taking a proactive rather than a reactive posture and by thinking like a customer.

Keeping it simpleLast but not the least, it‟s important to keep it simple and easy to understand

for the customer. Simplify communication by not using jargons and also ease

documentation and processes for him. Also, take all the requirements at one go to

avoid inconvenience. Stick to the point and never overload the customer with too

much information. And while winding up, make sure to conclude the meeting

appropriately.

If you take care of these simple things, you‟ll create an un usual level of trust,

respect and goodwill all around.

And the result? It would be extremely difficult for your competitors to steal your

delighted customers, leading us all to unparalleled growth.

Views

Handling the customers is being one of the major challenges for todays service

sectors. We all know that now days there are many choices for the customers, so if the

company fails to provide the required services the customers will never hesitate to

move to the other company where he thinks that he will get a better service.

Especially in financial sectors which bound to deal with million numbers of customers, customer satisfaction plays an important role.

The launch of SPIRIT service quality initiative has ignited a transform sense

of service. Through SPIRIT Kotak is trying to set a benchmark for other financial

institution in term of service.

According to me employees in customer care department should first know the detail

about the various products offered by the company. Once the customer calls to the

customer care for enquiring about any details the customer care should guide them in

such a way which should help the customer to select the suitable product which suits

him the best. The customer care should first know about the various products than

only they can provide the required information to the customers. Thus the call centre

employees should be trained in such a way that the customer should not be justsatisfied they should be satisfied with delightness.



BALANCE SHEET OF A BANK

LIABILITIES

Capital

Reserves and Surplus

Deposits

Borrowings

Other Liabilities and Provisions

ASSETS

Cash and balances with the Reserve Bank of India

Balances with Banks at Money at call and short notice

InvestmentsAdvances

Fixed assets

Other assets

CONTINGENT LIABILITIES

Letters of CreditGuarantees

Foreign Exchange Contracts

Underwriting Commitment

PROFIT AND LOSS ACCOUNT

I. IncomeInterest Income

Other Income

II. Expenditure

Interest expense

Operating expenses

Provision and contingencies

III. Profit (Loss)

Net Profit (Loss) for the year

Profit (Loss) brought forward



IV. Appropriations

Transfer to statutory reserves

Transfer to other reserves

Proposed dividend

Balance carried forward to the balance sheet.

The remarkable factor of the financials of a bank is that banks seek liabilities in orderto be profitable. If they do not have liabilities, they will not have funds to lend.



On CRM

CRM is a very specific strategy that seeks to identify customers individuallyand then craft sales and services strategies that are uniquely appropriate for each

customer.

Customer Relationship Management is a customer oriented management concept for

the improvement of customer acquisition, customer retention, customer value and to

increase company profitability.

Objectives of CRM

Customer Relationship Management Customer Return Management

Cost and Return Management

Continuous Relations Management

Customer Retention Management

Cost Reduction Management

Caring Relations Management

CRM Employs information systems to

Collect, analyze, integrate, and supply required information and data

Support the customer-oriented processes in marketing, sales, andservice.

At Kotak Mahindra Bank we use Siebel CRM system and there are 3 major areas of

Siebel CRM

Marketing Campaign Automation ( Cross Sell, Up Sell etc)

Sales Force Automation (tracking leads, productivity etc)

Service Management (Customer queries, request, complaints)



Measurable Benefits of CRM:

Marketing Management

Focused and targeted campaigns

Close looping of campaigns

Segmentation

Holistic View of Customer

Sales

Lead Management

Activity Management

Key Account Management ( Corporate Salary)

Cross sell/Up sell to existing customers

Automating Sales Cycle i.e. lead origination to culmination

Services

Adherence to TATs-Better Response Time

Customer Satisfaction / Loyalty

MIS Reports

Audit Trails/Notes



Risk Management

Business is all about taking “Risks” and managing those „Risks‟. Naturally, bank like any

other business entity has to manage its set of risks which include Credit risk, Operational risk and Residual risk (liquidity risk, interest rate risk, concentration risk, capital risk, earning risk,

strategic risk, compliance risk, management risk, reputation risk, etc.).

Risk Management is an activity directed towards assessing, mitigating (to an acceptable

level) and monitoring to risks. While market risk & credit risk management are confined to few

business / operations, operational risk management is the Business of all‟. In simple words,

“Operational risk is a risk of loss resulting from inadequate or failed internal processes, people

and systems or from external events.” It includes legal risk, but excludes strategic/ Business risk

and reputation risk.

Risk Management Structure

Board of Directors

Risk Management Committee (RMC)

Chief Risk Officer (CRO)

Risk Management Department

Operational Risk Management (ORM) Department Heads



Process for Operational Risk Management

ORM

DevelopORM Policy

IdentifyRisks

MeasuresRisks

MitigateRisks

Transfer/Finance

Risks

MonitorRisks

ProvideCapital to

Cover Risks



INFORMATION TECHNOLOGY

There was a gentleman walking with two heavy suitcases in an airport terminal. Someoneapproached and asked him what time it was. The gentleman bends down to park the two heavy

suitcases and stares at his watch. But this was no ordinary watch. He touches a tiny button and

his administrative assistant's face appears. He asks her,” Mary, what time is it?" Mary answersinstantly and with a smile!

The questioner is thoroughly impressed!!! He asks,” What kind of a watch is that?" "It's

like a TV with two-way real-time communication," the gentleman explains. He adds that thewatch is the latest technology with Intel's brand new 128-bit chip with processor speed of 10

Gigahertz.

The onlooker is now quite impressed and wanted to know if he could buy this watch fromthe gentleman. They agree on a price and the cash was handed immediately. The gentleman takes

his watch out and hands it over and then walks away. The new owner stares at the two heavysuitcases and shouts, "Sir, you forgot your suitcases."

The gentleman stops, smiles, and replies, "No, they are yours now. They are the modems U

need for your new watch.

Comments

The above example clearly shows that we should introduce a technology only when it is

really in need of. In the above mentioned example we can see that a gentleman buys a watch,which includes a two suitcase which contains the modem for the watch. We all know why watch

is required for. It‟s only for knowing the time. Hence there was no any requirement of a watchwith10 Gigahertz processor.

Therefore if any new technology is been introduced in the market, immediately weshould not think of buying it. First we should think that whether we are really in requirement of

those products. Whether introducing the new technology will benefit for the company in the long

run basis.

We should always introduce the technology from which we will be benifited, not because

of so and so is using the technology so let us also use it. We all know that while introducing anew technology heavy expenditure is to be incurred, therefore before implementing we shouldthink twice

The regular maintenance of the computers could be done much better than now, any

complain request placed by the employee regarding the computer should be cleared as soon aspossible; the day to day work should not get interrupted due to any technology problem.



Most of the staffs are on the assumption that “the company is not providing them with the

updated technology” but the real fact is are already providing a updated technology which ismore that enough for the job which they are pursuing, So take some steps to aware the staffs that

they are already been provided with the updated technology regarding to the job which they are

pursuing.

The Kotak Way of Working...

When you join us, you would have agreed to partake of an atmosphere that is:

Apolitical. Kotak believe corporate politicians are an insecure lotQuintessentially Indian. The Indian who is capable of making a mark for himself /

herself anywhere in the world

Respecting of people's capability rather than their credentials or looks. No one here is

hired for their looks! Any example otherwise is purely coincidentalDetermined to be on the right side of the law always, whether economic, social or moral.

History will bear us out

Humming in self-belief . Kotak works is an opportunity to create miracles. Again, history

will bear us out

At Kotak Mahindra Bank, we emphasize the entrepreneurial spirit. Which means, you have to

treat your work as if it were your own business? But "with great power comes great

responsibility" and some cultural aspects we maintain close to our heart are:

A strong ethical framework: We won't comprise on our principles and our standards for

high-growth.Creative brain-storming, innovation and team-work: Sure you have to take the finalcall, but creative brainstorming helps you innovate, involve your team members and take

the right decision.

Respect for the customer: We don't put up a front of "customer is the king", but actuallybelieve that the customer has some point of view, and it is our responsibility to listen to

that view and respond to it in the right manner.

A positive outlook towards work and life: If this is your business, then you need totreat it as such. We don't believe in people who come here thinking it is "just another job"

or "just another bank".



Five Reasons to Work with Kotak

The Brand

o 14 group companies

o 20,000 employees + family members

o 370 cities

The entrepreneurship

o Creativity- freedom and Scope

o Great Leadership - it‟s a grooming ground

Career Development

o Multiple avenues for lateral and vertical growth

o Stupendous learning opportunities

o Focused and planned individual development

The Culture

o Open, Transparent, Apolitical

o Non-Hierarchical and informal

o Emphasis on balanced work life

The People

o Ambitious and determined - go better!

o Exude Warmth, and friendliness

o Exhibit world class managerial styles!



Recruitment Policies and process

Business heads will send their manpower requirement for their division to HR. The HRhead will propose the annual budget for approval by ED/MD. These figures will be approved

along with the annual budgets by the ED/MD.

After obtaining the endorsement of the respective group heads and the ED/MD, the

requisitions need to be forwarded to the HR function for further processing.

Depending on the nature of the vacancy the HR function will arrange to identifymanpower through one or more of the following sources.

Active application data bank

Print Advertisement

Placement agencies, including application received through placement, websites, and job portals.

Entry level professional graduates, includes management trainees

Employee Referrals and internal applications.

The HR will be responsible for recruitment of all positions across the bands and it will be

the sole responsibility of the HR to coordinate with the above mentioned sources of recruitment

Selection ProcedureInitial Screening of resumes will be carried out by HR and candidate will be short listed

for the primary round of interview

Two to tree rounds of interview use to be conducted depending on the grade for which

the interview is to be conducted. The interviewer also depends on the grade for which theinterview is to be conducted.

Aptitude test for front line employee is a prerequisite for entry into the company, unless

viewed by the HR head.

Feedback of the interview has to be documented either interview assessment form or

through noting in the resumes of the candidates. Line manager to ensure that the said documentis send to HR along with all other documents

Reference check has to be done on a compulsory basis for all positions. Reference check

process will be decided by HR.

Appointment letter shall be issued after the receipt of the following documents:-



Recruitment requisition form duly completed

CV of the CandidateInterview rating sheer

The candidate will have to submit medical certificate of fitness on joining the company

unless waived by the HR head.

Any candidate who has been rejected for a particular position cannot apply for another

position in the same function at least for the next 6 months.

In exceptional cases, the bank is open to re-employing people who has previously worked

with kotak group to be cleared by the HR.

Campus Recruitment Campus recruitment will be defined as both lateral and fresher hiring done from various

professional colleges, including B-School, law colleges and ICAI institutes. This will alsoinclude the summer trainee recruitment as well.

The HR campus recruitment team will identify the list of institute to recruit from, basedon the numbers to be recruited, region, and role wise. For this purpose institute/college will be

graded every year into various grades like A, B, C…etc.

The salary to be paid on campus will be decided by the HR depending on the averagesalary trends of the campuses.

Post the recruitment process the selected candidate will be intimated about the job offerwith Kotak Mahendra Bank Limited.

The detailed appointment letters giving details on the T & C of the employment, salary,place of position and date of joining is sent to the management trainees selected.

Views

I would really appreciate the various policies and procedures of the HR team in term of recruitments. But I think that the sources of identifying the manpower should be used more

effectively, so that more no of candidates can apply for the job, and a best of the best can be

selected. This will help to find the required manpower at the required time.

Campus recruitment can be used much effectively, because through campus we get

young talented candidates who are just about to enter the corporate world. So through campus

recruitment we can recruit those young talented candidates, and if we give proper training to

them, then those candidates will be really helpful for the growth of the organization.



Employee Benefits

o Credit Card

o Company Car scheme

o Conveyance

o Emergency Loan

o Mobile Phone

o Addendum to Mobile

o Leave travel allowance

o Addendum to Leave Travel Allowance

ViewsThese are the various benefits given by the company to its employees. But the thing is

whether all the staffs are using the benefits in the right way? One of the good things is that the

company is providing benefits depending upon the grade of the employees. As we all know

different employees have different requirements, it‟s the duty of the organization to provide it inthe right way to the right employee. Here we can also apply mascilows hierarchy theory which

clearly explains about the requirement of the employees at different stages. Hence I would

appreciate the HR team for providing the right benefits to the right employees who are really inrequire of it. One more question arising over her is where all the employees are known about the

benefits available to them. In this case the HR team should take initiatives in making awarenessto the employees about the various benefits available to them.

I had thoroughly gone through the various addendum to mobile and leave travelallowance. Here also bifurcation has been done depending on the grade of the employees. Hence

the HR team is not only showing initiatives in satisfying the employees, they are also considering

the cost which is really good for the organization.

Most of the employees are not satisfied with the bus service provided by the company. Asthey are paying for the bus service, they expect some sort of good service, which they are not

getting. So make sure that effective changes should be brought in to make the employees

satisfied.As we know that human wants are always unlimited, so as the employees also. Whatever

the company may do for the employees, they are not satisfied at all. Therefore the company

should arrange for some meeting with the staff members, in which a detail report of the variousbenefits should be presented along with the cost incurred on such benefits. So that the employee

could know “what the company is doing for them”

As per now only 75% of the expenses incurred on medical can only be claimed by the

employees. This can be changed as 100%, which most of the employees wants to.



Cost Saving Initiatives

Discovery

o What is being Printed

o How is being printed / Distributed

o Who is printing it

Evaluation

o Who is being Printed

o Should it be printed

Saving Exploration

o Should it be distributed by other means ( Web, Emails)

o Restrict colors and finishing features

o Print conversions to electronic format

Implementation

o Use of refilled tonners

o Setting printer to economic mode

o Back to back printing

Monitoring

o Inculcating the habit

o Thinking cost first

o Continue discovery….

Use IP messenger in place of making phone calls as far as possible to reduce operating bills

Adopt the practice of „Single Package Dispatch Per location Per Day‟ to save substantial courier

costUse refilled toners and use back to back printers to reduce printing cost

ViewsThe above mentioned are the various cost saving initiatives taken by the organization.

But I don‟t think that this initiative has been followed by the staffs. Therefore n ecessary steps

have to be taken so that the above mentioned initiatives can be strictly followed. This will help toreduce the operating bills on a long run basis.

I had also absorbed that some of the staff‟s are sending their personal courier along with

companies couriers. The method of “single Package Dispatch Per Location Per Day” is not beencorrectly followed. So take some steps to implement them in a much efficient way to save the

substantial courier cost.



Marketing - Retail Liabilities & Branch Banking

Marketing at Kotak Mahindra Bank categorizes in to four departments - Marketing

Communications, PR & Corporate Communications, and Marketing Activation & Regional

Marketing. These departments act as an advisory and support channel towards marketingstrategies and PR planning to ensure effective brand building through brand awareness and

visibility. The objective is to implement effective campaigns and promotions which would help

in meeting the business targets and getting media coverage for the same.

Marketing Communications

Marketing Communications takes care of the creation, rollout and analysis of all national

campaigns at the brand and product level. This includes doing various brand and productcampaigns as well as researches to monitor the growth of the brand and the campaign deliveries.

This department also takes care of creative conceptualization and rollout of all regional requests(events, promotions, contests, campaigns) Central marketing also provides support to both the

product team and the branches in terms of conceptualizing and standardizing marketing

collaterals. These include standard branch collaterals like posters, banners, e-mailers, brochures

etc.

Marketing Activation

Marketing Activation comprises of all marketing activities done at an onground level.This may be in the form of new branch launches, branch based events, sales promotions,

merchandising, and creation of any marketing collaterals for the branches. The primary

objectives of Marketing Activation team are to conduct activities that will generate prospects orleads for the Bank and deepens the existing customer relationship through indoor and outdoor

support.

Regional Marketing

Regional Marketing includes all marketing activities done at regional/ local level. Thismay be in the form of new branch launches, branch based events, sales promotions, branch

expense tracking and creation of any marketing collaterals for the branches.



PR & Corporate Communication

Public Relations, as a marketing tool, are gaining more and more importance in today‟seconomic scenario, where reputation risk is very high. PR is a very impactful tool by which an

organization can communicate with consumers. It has a certain credibility factor to it, because of

the „third- party endorsement‟ that it carries. PR can be used very strategically to create thedesired positioning for the organization and the brand, and also to project spokespersons as

opinion makers / influencers / industry experts.

Comments

Marketing department is been continuously doing its job of advertising about the various

products provided by the bank. Through advertisement proper communication is being doneabout the various product details. But still detailed information about the product can not beexplained through advertising in any form of media. Therefore we should take initiatives so that

the customer can contact us and know more about the products

In most of the cases the customer goes through the website for more details. The website

have provision for collecting details about the customers, but this is not been used effectively. Imy self had gone through the website for knowing more details about the saving account. Where

I found a section which asked me to fill my details, I did the same. Even after 7-8 working days

still no one had contacted me, and nor any details has been sent to my email id. Which clearly

shows that more initiatives has to be taken, and make sure that required information should be

provided to the customers as soon as possible



Corporate Responsibility

Kotak Mahindra views Corporate Social Responsibility as an investment in society and in

its own future. Kotak uses the power of its human and financial capital to help in transforming

communities into vibrant, desirable places for people to live. The group leverages its corecompetencies in three areas:

Sustainability An integral part of all Kotak Mahindra Group activities is to be consistently responsibleto shareholders, clients, employees, society and the environment.

Economic Development By helping people achieve their financial goals, Kotak strengthens the fabric of

communities and helps them overcome unemployment and poverty to help them shapetheir future.

Doing My Bit A growing number of employees are committed to civic leadership and responsibility

with the support and encouragement of the Kotak Group. A number of employees havebeen involved in strengthening communities through voluntary work, payroll giving and

management inputs.



SWOT ANALYSIS OF KOTAK MAHINDRA

BANK.

1. STRENGTHS

Professional management

Strong technology,

Well capitalized,

Comprehensive cash management system

2. WEAKNESS

Latecomers

Less Promotional Activities

3. OPPORTUNITIES:

Have best services & product compare to other bank

4. THREATS:

Capital Market slow-down

Other better Saving Facility by other Competitor

Rising Rates

Competition

Last Price Market Cap.(Rs. cr.)

Net InterestIncome

Net Profit Total Assets

ICICI Bank 1,055.55 121,575.33 25,974.05 5,151.38 363,399.71

HDFC Bank 2,382.50 110,840.02 19,928.21 3,926.39 277,352.61

Axis Bank 1,260.05 51,776.66 15,154.81 3,388.49 242,713.37

Kotak Mahindra 447.95 33,008.16 4,303.56 818.18 37,436.31

IndusInd Bank 262.30 12,222.39 3,589.36 577.32 35,369.52YES BANK 296.85 10,305.06 4,041.74 727.13 59,007.00

Federal Bank 458.65 7,841.30 4,052.03 587.08 43,675.61

Karur Vysya 412.10 4,819.10 2,217.69 415.59 21,993.49

ING Vysya Bank 340.95 4,125.04 2,694.06 318.65 33,880.24

JK Bank 835.40 4,049.84 3,713.13 615.20 42,546.80



Comparison Statement

HDFC Bank ICICI Bank Kotak MahindraIndusInd

Bank

Mar '11 Mar '11 Mar '11 Mar '11

Sales Turnover 19,928.21 25,974.05 4,303.56 3,589.36

Other Income 4,335.15 6,647.90 633.04 713.66

Total Income 24,263.36 32,621.95 4,936.60 4,303.02

Total Expenses 9,059.63 8,904.09 1,690.41 1,210.37

Operating Profit 10,868.58 17,069.96 2,613.15 2,378.99

Profit On Sale Of Assets -- -- -- --

Profit On Sale Of Investments -- -- -- --

Gain/Loss On Foreign Exchange -- -- -- --

VRS Adjustment -- -- -- --

Other Extraordinary Income/Expenses -- -- -- --Total Extraordinary Income/Expenses -- -- -- --

Tax On Extraordinary Items -- -- -- --

Net Extra Ordinary Income/Expenses -- -- -- --

Gross Profit 15,203.73 23,717.86 3,246.19 3,092.65

Interest 9,385.08 16,957.15 2,058.49 2,212.87

PBDT 5,818.65 6,760.71 1,187.70 879.78

Depreciation -- -- -- --

Depreciation On Revaluation Of Assets -- -- -- --

PBT 5,818.65 6,760.71 1,187.70 879.78

Tax 1,892.26 1,609.33 369.52 302.46

Net Profit 3,926.39 5,151.38 818.18 577.32

Prior Years Income/Expenses -- -- -- --

Depreciation for Previous Years Written Back/ Provided

-- -- -- --

Dividend -- -- -- --

Dividend Tax -- -- -- --

Dividend (%) -- -- -- --

Earnings Per Share 84.40 44.72 11.10 12.39

Book Value -- -- -- --

Equity 465.23 1,151.82 368.44 465.97

Reserves 24,911.13 53,938.83 6,428.04 3,358.90

Face Value 10.00 10.00 5.00 10.00



What is Life Insurance?

Essentially life insurance provides financial protection to your family and dependents in theevent of any unforeseen event or your untimely death. To cover you under a life insurance

policy, an insurance company will charge you a certain sum of money (called the premium)

periodically. The premium paid helps cover the risk that the life insurance company takes by

insuring your life and in turn entitles your family to receive a fixed lump sum.The premium you pay depends on a variety of factors including age, health and the

amount of life cover you want to name a few. However, premiums are typically lower for

younger, healthier people, so starting early is always beneficial for you

Different Types of Life Insurance Plans

There two major categories under which all life insurance plans can be categorized. These

categories are as follows:

Traditional life insurance plans - Traditional life insurance plans make sure that theinvestments made by the policy holders are not exposed to equities. They are also calledas non-unit linked insurance plans. Such plans are suited for customers looking for pure

risk protection. These insurance plans are also suitable for those who are totally risk

averse and want complete safety of their investments.

Unit Linked Insurance plans (ULIPs) - ULIPs, as the name suggests, allows for the

investments made by the policyholders to get exposed to equities. They may also be

called as market linked life insurance plans. ULIPs are suited for customers who aim for

wealth creation over a long term. The level of equity exposure can be as per your risk appetite thus making ULIPs highly flexible.

Why Life Insurance?Life Insurance is required because of the following factors –

Life Insurance takes care of those who are financially dependent on you even when you

are not around to look after them.

Retirement planning requires wise investments during your working life in order to livecomfortably during retirement. A good retirement plan takes care of your retirement, as

there is no guarantee of a consistent income post retirement.

The expenses you may incur in future will keep increasing due to inflation, thus even afluctuation in your income may lead to a compromised lifestyle,

Limited access to information and the time constraints you have may lead to inefficientmanagement of your investments resulting in grim returns.

Savings plan enables individuals to secure their financial future by helping you to getattractive returns.



Your limited appetite to take risk may hinder you from parking your savings into pureequity options.

Why Kotak Life Insurance?

Kotak Life Insurance (Kotak Mahindra Old Mutual Life Insurance Ltd.) is one of theleading life insurance companies in India. It is joint venture between Kotak Mahindra Bank Ltd.

and Old Mutual Plc, South Africa, one of the biggest Life Insurance companies in the world.

Because of the strong investment lineage of Kotak group, Kotak Life Insurance is able to offer acomprehensive variety of products and services that suit the diverse needs and risk-return

profiles of every investor. We are committed to using our expertise in securing your future and

ensuring that your investments keep giving you lucrative returns.

What is a Mutual Fund?

Mutual fund is a mechanism for pooling the resources by issuing units to the investorsand investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectorsand thus the risk is reduced. Diversification reduces the risk because all stocks may not move in

the same direction in the same proportion at the same time. Mutual fund issues units to the

investors in accordance with quantum of money invested by them. Investors of mutual funds areknown as unitholders.

The profits or losses are shared by the investors in proportion to their investments. The

mutual funds normally come out with a number of schemes with different investment objectiveswhich are launched from time to time. A mutual fund is required to be registered with Securities

and Exchange Board of India (SEBI) which regulates securities markets before it can collect

funds from the public.

What is the history of Mutual Funds in India and role of SEBI in mutual funds industry?

Unit Trust of India was the first mutual fund set up in India in the year 1963. In early

1990s, Government allowed public sector banks and institutions to set up mutual funds.

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The

objectives of SEBI are – to protect the interest of investors in securities and to promote thedevelopment of and to regulate the securities market.

As far as mutual funds are concerned, SEBI formulates policies and regulates the mutualfunds to protect the interest of the investors. SEBI notified regulations for the mutual funds in

1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the

capital market. The regulations were fully revised in 1996 and have been amended thereafter



from time to time. SEBI has also issued guidelines to the mutual funds from time to time to

protect the interests of investors.

All mutual funds whether promoted by public sector or private sector entities including

those promoted by foreign entities are governed by the same set of Regulations. There is no

distinction in regulatory requirements for these mutual funds and all are subject to monitoringand inspections by SEBI. The risks associated with the schemes launched by the mutual funds

sponsored by these entities are of similar type. It may be mentioned here that Unit Trust of India(UTI) is not registered with SEBI as a mutual fund (as on January 15, 2002).

How is a mutual fund set up?

A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset

Management Company (AMC) and custodian. The trust is established by a sponsor or more thanone sponsor who is like promoter of a company. The trustees of the mutual fund hold its property

for the benefit of the unitholders. Asset Management Company (AMC) approved by SEBI

manages the funds by making investments in various types of securities. Custodian, who isregistered with SEBI, holds the securities of various schemes of the fund in its custody. The

trustees are vested with the general power of superintendence and direction over AMC. They

monitor the performance and compliance of SEBI Regulations by the mutual fund.

SEBI Regulations require that at least two thirds of the directors of trustee company orboard of trustees must be independent i.e. they should not be associated with the sponsors. Also,50% of the directors of AMC must be independent. All mutual funds are required to be

registered with SEBI before they launch any scheme. However, Unit Trust of India (UTI) is not

registered with SEBI (as on January 15, 2002).

What is Net Asset Value (NAV) of a scheme?

The performance of a particular scheme of a mutual fund is denoted by Net Asset Value

(NAV).

Mutual funds invest the money collected from the investors in securities markets. In

simple words, Net Asset Value is the market value of the securities held by the scheme. Since

market value of securities changes every day, NAV of a scheme also varies on day to day basis.The NAV per unit is the market value of securities of a scheme divided by the total number of

units of the scheme on any particular date. For example, if the market value of securities of a

mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each

to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed bythe mutual funds on a regular basis - daily or weekly - depending on the type of scheme.

What are the different types of mutual fund schemes?

Schemes according to Maturity Period



A mutual fund scheme can be classified into open-ended scheme or close-ended scheme

depending on its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase ona continuous basis. These schemes do not have a fixed maturity period. Investors can

conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a

daily basis. The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is

open for subscription only during a specified period at the time of launch of the scheme.

Investors can invest in the scheme at the time of the initial public issue and thereafter they can

buy or sell the units of the scheme on the stock exchanges where the units are listed. In order toprovide an exit route to the investors, some close-ended funds give an option of selling back the

units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations

stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchasefacility or through listing on stock exchanges. These mutual funds schemes disclose NAV

generally on weekly basis.

Schemes according to Investment Objective

A scheme can also be classified as growth scheme, income scheme, or balanced scheme

considering its investment objective. Such schemes may be open-ended or close-ended schemesas described earlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

The aim of growth funds is to provide capital appreciation over the medium to long-term. Such schemes normally invest a major part of their corpus in equities. Such funds have

comparatively high risks. These schemes provide different options to the investors like dividend

option, capital appreciation, etc. and the investors may choose an option depending on their

preferences. The investors must indicate the option in the application form. The mutual funds

also allow the investors to change the options at a later date. Growth schemes are good forinvestors having a long-term outlook seeking appreciation over a period of time.

Income / Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such

schemes generally invest in fixed income securities such as bonds, corporate debentures,



Government securities and money market instruments. Such funds are less risky compared to

equity schemes. These funds are not affected because of fluctuations in equity markets.However, opportunities of capital appreciation are also limited in such funds. The NAVs of such

funds are affected because of change in interest rates in the country. If the interest rates fall,

NAVs of such funds are likely to increase in the short run and vice versa. However, long term

investors may not bother about these fluctuations.

Balanced Fund

The aim of balanced funds is to provide both growth and regular income as such schemesinvest both in equities and fixed income securities in the proportion indicated in their offer

documents. These are appropriate for investors looking for moderate growth. They generally

invest 40-60% in equity and debt instruments. These funds are also affected because of

fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to beless volatile compared to pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity, preservation

of capital and moderate income. These schemes invest exclusively in safer short-terminstruments such as treasury bills, certificates of deposit, commercial paper and inter-bank callmoney, government securities, etc. Returns on these schemes fluctuate much less compared to

other funds. These funds are appropriate for corporate and individual investors as a means to

park their surplus funds for short periods.

Gilt Fund

These funds invest exclusively in government securities. Government securities have no

default risk. NAVs of these schemes also fluctuate due to change in interest rates and othereconomic factors as is the case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index,S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage

comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise orfall in the index, though not exactly by the same percentage due to some factors known as

"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer

document of the mutual fund scheme.



There are also exchange traded index funds launched by the mutual funds which aretraded on the stock exchanges.

What are sector specific funds/schemes?

These are the funds/schemes which invest in the securities of only those sectors or

industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving

Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on

the performance of the respective sectors/industries. While these funds may give higher returns,they are more risky compared to diversified funds. Investors need to keep a watch on the

performance of those sectors/industries and must exit at an appropriate time. They may also seek

advice of an expert.

What are Tax Saving Schemes?

These schemes offer tax rebates to the investors under specific provisions of the Income

Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g.Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also

offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities.Their growth opportunities and risks associated are like any equity-oriented scheme.

What is a Load or no-load Fund?

A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each timeone buys or sells units in the fund, a charge will be payable. This charge is used by the mutualfund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as

well as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10

and those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit.The investors should take the loads into consideration while making investment as these affect

their yields/returns. However, the investors should also consider the performance track record

and service standards of the mutual fund which are more important. Efficient funds may give

higher returns in spite of loads.

A no-load fund is one that does not charge for entry or exit. It means the investors can

enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.

Can a mutual fund impose fresh load or increase the load beyond the level mentioned in

the offer documents?



Mutual funds cannot increase the load beyond the level mentioned in the offer document.

Any change in the load will be applicable only to prospective investments and not to the originalinvestments. In case of imposition of fresh loads or increase in existing loads, the mutual funds

are required to amend their offer documents so that the new investors are aware of loads at the

time of investments.

What are a sales or repurchase/redemption price?

The price or NAV a unitholder is charged while investing in an open-ended scheme is

called sales price. It may include sales load, if applicable.

Repurchase or redemption price is the price or NAV at which an open-ended scheme

purchases or redeems its units from the unitholders. It may include exit load, if applicable.

What is an assured return scheme?

Assured return schemes are those schemes that assure a specific return to the unitholdersirrespective of performance of the scheme.

A scheme cannot promise returns unless such returns are fully guaranteed by the sponsoror AMC and this is required to be disclosed in the offer document.

Investors should carefully read the offer document whether return is assured for the entireperiod of the scheme or only for a certain period. Some schemes assure returns one year at a time

and they review and change it at the beginning of the next year.

Can a mutual fund change the asset allocation while deploying funds of investors?

Considering the market trends, any prudent fund managers can change the asset

allocation i.e. he can invest higher or lower percentage of the fund in equity or debt instruments

compared to what is disclosed in the offer document. It can be done on a short term basis ondefensive considerations i.e. to protect the NAV. Hence the fund managers are allowed certain

flexibility in altering the asset allocation considering the interest of the investors. In case the

mutual fund wants to change the asset allocation on a permanent basis, they are required to

inform the unitholders and giving them option to exit the scheme at prevailing NAV without any

load.

How to invest in a scheme of a mutual fund?

Mutual funds normally come out with an advertisement in newspapers publishing the

date of launch of the new schemes. Investors can also contact the agents and distributors of

mutual funds who are spread all over the country for necessary information and application



forms. Forms can be deposited with mutual funds through the agents and distributors who

provide such services. Now a days, the post offices and banks also distribute the units of mutualfunds. However, the investors may please note that the mutual funds schemes being marketed by

banks and post offices should not be taken as their own schemes and no assurance of returns is

given by them. The only role of banks and post offices is to help in distribution of mutual funds

schemes to the investors.

Investors should not be carried away by commission/gifts given by agents/distributors forinvesting in a particular scheme. On the other hand they must consider the track record of the

mutual fund and should take objective decisions.

Can non-resident Indians (NRIs) invest in mutual funds?

Yes, non-resident Indians can also invest in mutual funds. Necessary details in this

respect are given in the offer documents of the schemes.

How much should one invest in debt or equity oriented schemes?

An investor should take into account his risk taking capacity, age factor, financial

position, etc. As already mentioned the schemes invest in different type of securities as disclosed

in the offer documents and offer different returns ands risks. Investors may also consult financialexperts before taking decisions. Agents and distributors may also help in this regard.

How to fill up the application form of a mutual fund scheme?

An investor must mention clearly his name, address, number of units applied for and suchother information as required in the application form. He must give his bank account number so

as to avoid any fraudulent encashment of any cheque/draft issued by the mutual fund at a later

date for the purpose of dividend or repurchase. Any changes in the address, bank accountnumber, etc at a later date should be informed to the mutual fund immediately.

What should an investor look into an offer document?

An abridged offer document, which contains very useful information, is required to be

given to the prospective investor by the mutual fund. The application form for subscription to ascheme is an integral part of the offer document. SEBI has prescribed minimum disclosures in

the offer document. An investor, before investing in a scheme, should carefully read the offerdocument. Due care must be given to portions relating to main features of the scheme, risk

factors, initial issue expenses and recurring expenses to be charged to the scheme, entry or exit

loads, sponsor‟s track record, educational qualification and work experience of key personnelincluding fund managers, performance of other schemes launched by the mutual fund in the past,

pending litigations and penalties imposed, etc.



When will the investor get certificate or statement of account after investing in a mutual

fund?

Mutual funds are required to despatch certificates or statements of accounts within six

weeks from the date of closure of the initial subscription of the scheme. In case of close-endedschemes, the investors would get either a demat account statement or unit certificates as these are

traded in the stock exchanges. In case of open-ended schemes, a statement of account is issuedby the mutual fund within 30 days from the date of closure of initial public offer of the scheme.

The procedure of repurchase is mentioned in the offer document.

How long will it take for transfer of units after purchase from stock markets in case of

close-ended schemes?

According to SEBI Regulations, transfer of units is required to be done within thirty days

from the date of lodgment of certificates with the mutual fund.

As a unitholder, how much time will it take to receive dividends/repurchase proceeds?

A mutual fund is required to dispatch to the unitholders the dividend warrants within 30

days of the declaration of the dividend and the redemption or repurchase proceeds within 10working days from the date of redemption or repurchase request made by the unitholder.

In case of failures to dispatch the redemption/repurchase proceeds within the stipulatedtime period, Asset Management Company is liable to pay interest as specified by SEBI from

time to time (15% at present).

Can a mutual fund change the nature of the scheme from the one specified in the offer

document?

Yes. However, no change in the nature or terms of the scheme, known as fundamentalattributes of the scheme e.g. structure, investment pattern, etc. can be carried out unless a written

communication is sent to each unitholder and an advertisement is given in one English daily

having nationwide circulation and in a newspaper published in the language of the region where

the head office of the mutual fund is situated. The unitholders have the right to exit the scheme at

the prevailing NAV without any exit load if they do not want to continue with the scheme. Themutual funds are also required to follow similar procedure while converting the scheme form

close-ended to open-ended scheme and in case of change in sponsor.



How will an investor come to know about the changes, if any, which may occur in the

mutual fund?

There may be changes from time to time in a mutual fund. The mutual funds are required

to inform any material changes to their unitholders. Apart from it, many mutual funds send

quarterly newsletters to their investors.

At present, offer documents are required to be revised and updated at least once in two

years. In the meantime, new investors are informed about the material changes by way of

addendum to the offer document till the time offer document is revised and reprinted.

How to know the performance of a mutual fund scheme?

The performance of a scheme is reflected in its net asset value (NAV) which is disclosed

on daily basis in case of open-ended schemes and on weekly basis in case of close-endedschemes. The NAVs of mutual funds are required to be published in newspapers. The NAVs are

also available on the web sites of mutual funds. All mutual funds are also required to put their

NAVs on the web site of Association of Mutual Funds in India (AMFI)http://www.amfiindia.com/ and thus the investors can access NAVs of all mutual funds at one

place

The mutual funds are also required to publish their performance in the form of half-yearly

results which also include their returns/yields over a period of time i.e. last six months, 1 year, 3

years, 5 years and since inception of schemes. Investors can also look into other details likepercentage of expenses of total assets as these have an affect on the yield and other useful

information in the same half-yearly format.

The mutual funds are also required to send annual report or abridged annual report to the

unitholders at the end of the year.

Various studies on mutual fund schemes including yields of different schemes are being

published by the financial newspapers on a weekly basis. Apart from these, many research

agencies also publish research reports on performance of mutual funds including the ranking of various schemes in terms of their performance. Investors should study these reports and keep

themselves informed about the performance of various schemes of different mutual funds.

Investors can compare the performance of their schemes with those of other mutual fundsunder the same category. They can also compare the performance of equity oriented schemes

with the benchmarks like BSE Sensitive Index, S&P CNX Nifty, etc.

On the basis of performance of the mutual funds, the investors should decide when to

enter or exit from a mutual fund scheme.



How to know where the mutual fund scheme has invested money mobilised from the

investors?

The mutual funds are required to disclose full portfolios of all of their schemes on half-

yearly basis which are published in the newspapers. Some mutual funds send the portfolios totheir unitholders.

The scheme portfolio shows investment made in each security i.e. equity, debentures,

money market instruments, government securities, etc. and their quantity, market value and % to

NAV. These portfolio statements also required to disclose illiquid securities in the portfolio,investment made in rated and unrated debt securities, non-performing assets (NPAs), etc.

Some of the mutual funds send newsletters to the unitholders on quarterly basis whichalso contain portfolios of the schemes.

Is there any difference between investing in a mutual fund and in an initial public offering

(IPO) of a company?

Yes, there is a difference. IPO‟s of companies may open at lower or higher price than the

issue price depending on market sentiment and perception of investors. However, in the case of

mutual funds, the par value of the units may not rise or fall immediately after allotment. Amutual fund scheme takes some time to make investment in securities. NAV of the scheme

depends on the value of securities in which the funds have been deployed.

If schemes in the same category of different mutual funds are available, should one choosea scheme with lower NAV?

Some of the investors have the tendency to prefer a scheme that is available at lower

NAV compared to the one available at higher NAV. Sometimes, they prefer a new scheme whichis issuing units at Rs. 10 whereas the existing schemes in the same category are available at

much higher NAVs. Investors may please note that in case of mutual funds schemes, lower or

higher NAVs of similar type schemes of different mutual funds have no relevance. On the otherhand, investors should choose a scheme based on its merit considering performance track record

of the mutual fund, service standards, professional management, etc. This is explained in an

example given below.

Suppose scheme A is available at a NAV of Rs.15 and another scheme B at Rs.90. Both

schemes are diversified equity oriented schemes. Investor has put Rs. 9,000 in each of the two

schemes. He would get 600 units (9000/15) in scheme A and 100 units (9000/90) in scheme B.Assuming that the markets go up by 10 per cent and both the schemes perform equally good and

it is reflected in their NAVs. NAV of scheme A would go up to Rs. 16.50 and that of scheme B

to Rs. 99. Thus, the market value of investments would be Rs. 9,900 (600* 16.50) in scheme Aand it would be the same amount of Rs. 9900 in scheme B (100*99). The investor would get the



same return of 10% on his investment in each of the schemes. Thus, lower or higher NAV of the

schemes and allotment of higher or lower number of units within the amount an investor iswilling to invest, should not be the factors for making investment decision. Likewise, if a new

equity oriented scheme is being offered at Rs.10 and an existing scheme is available for Rs. 90,

should not be a factor for decision making by the investor. Similar is the case with income or

debt-oriented schemes.

On the other hand, it is likely that the better managed scheme with higher NAV may givehigher returns compared to a scheme which is available at lower NAV but is not managed

efficiently. Similar is the case of fall in NAVs. Efficiently managed scheme at higher NAV may

not fall as much as inefficiently managed scheme with lower NAV. Therefore, the investorshould give more weightage to the professional management of a scheme instead of lower NAV

of any scheme. He may get much higher number of units at lower NAV, but the scheme may not

give higher returns if it is not managed efficiently.

How to choose a scheme for investment from a number of schemes available?

As already mentioned, the investors must read the offer document of the mutual fund

scheme very carefully. They may also look into the past track record of performance of the

scheme or other schemes of the same mutual fund. They may also compare the performance withother schemes having similar investment objectives. Though past performance of a scheme is not

an indicator of its future performance and good performance in the past may or may not be

sustained in the future, this is one of the important factors for making investment decision. Incase of debt oriented schemes, apart from looking into past returns, the investors should also see

the quality of debt instruments which is reflected in their rating. A scheme with lower rate of

return but having investments in better rated instruments may be safer. Similarly, in equities

schemes also, investors may look for quality of portfolio. They may also seek advice of experts.

Are the companies having names like mutual benefit the same as mutual funds schemes?

Investors should not assume some companies having the name "mutual benefit" asmutual funds. These companies do not come under the purview of SEBI. On the other hand,

mutual funds can mobilize funds from the investors by launching schemes only after getting

registered with SEBI as mutual funds.

Is the higher net worth of the sponsor a guarantee for better returns?

In the offer document of any mutual fund scheme, financial performance including the

net worth of the sponsor for a period of three years is required to be given. The only purpose is

that the investors should know the track record of the company which has sponsored the mutualfund. However, higher net worth of the sponsor does not mean that the scheme would give better

returns or the sponsor would compensate in case the NAV falls.



Where can an investor look out for information on mutual funds?

Almost all the mutual funds have their own web sites. Investors can also access the

NAVs, half-yearly results and portfolios of all mutual funds at the web site of Association of

mutual funds in India (AMFI) www.amfiindia.com. AMFI has also published useful literaturefor the investors.

Investors can log on to the web site of SEBI www.sebi.gov.in and go to "Mutual Funds"

section for information on SEBI regulations and guidelines, data on mutual funds, draft offer

documents filed by mutual funds, addresses of mutual funds, etc. Also, in the annual reports of SEBI available on the web site, a lot of information on mutual funds is given.

There are a number of other web sites which give a lot of information of various schemesof mutual funds including yields over a period of time. Many newspapers also publish useful

information on mutual funds on daily and weekly basis. Investors may approach their agents and

distributors to guide them in this regard.

If mutual fund scheme is wound up, what happens to money invested?

In case of winding up of a scheme, the mutual funds pay a sum based on prevailing NAV

after adjustment of expenses. Unitholders are entitled to receive a report on winding up from themutual funds which gives all necessary details.

How can the investors redress their complaints?

Investors would find the name of contact person in the offer document of the mutual fundscheme that they may approach in case of any query, complaints or grievances. Trustees of a

mutual fund monitor the activities of the mutual fund. The names of the directors of Asset

Management Company and trustees are also given in the offer documents. Investors can alsoapproach SEBI for redressal of their complaints. On receipt of complaints, SEBI takes up the

matter with the concerned mutual fund and follows up with them till the matter is resolved.

Investors may send their complaints to:

Securities and Exchange Board of India

Mutual Funds Department

Mittal Court „B‟ wing, First Floor, 224, Nariman Point,

Mumbai – 400 021.

Phone: 2850451-56, 2880962-70

Why Kotak Securities



We see investing from your perspective, and make recommendations based on your

needs. One of our important goals is to simplify investing for you; along with this we alsoprovide long term values to our customers.

We have a million reasons for you to choose us. Listed below are a few:

Stability: We are a 100% subsidiary of Kotak Mahindra Bank and one of the oldest and

largest stock broking firms in the Industry. We have been the first and only NBFC to receivethe license to be converted into a bank.

Innovators in the Industry: We have been the first in providing many products and serviceswhich have now become industry standards.

First to provide Margin Financing to the customers

First to enable investing in IPOs and Mutual Funds on the phone

Providing SMS alerts before execution of depository transactions

Launching of Mobile application to track portfolio

AutoInvest - A systematic investing plan in Equities and Mutual fund

Provision of margin against securities automatically against shares in your Demataccount

Reliability: Our accolades are a testimony to our services and high standards. We have beenawarded as:

Best Broker in India by FinanceAsia for 2010 & 2009

UTI MF - CNBC TV18 Financial Advisor Awards - Best Performing Equity Broker(National) for the year 2009

Best Brokerage Firm in India by Asiamoney in 2009, 2008, 2007 & 2006

Best Performing Equity Broker in India – CNBC Financial Advisor Awards 2008

Avaya Customer Responsiveness Awards (2007) in Financial Services Sector

The Leading Equity House in India' in Thomson Extel Surveys Awards for the year 2007

Euromoney Award (2006 & 2007) - Best Provider of Portfolio Management : Equities



Value: Whether you are a customer with a small or large wallet size, you can expect us to

bring value to you in every form.

Quality Research Quick trade execution

Low brokerages

Accounts that suit your investment profile

Risk Profiler

Superior Customer Service

Service: We believe in high standards of service and that's precisely what we offer. It's anhonour to be awarded the most customer responsive company award in the Financial

Institution sector by AVAYA GlobalConnect Award both in 2006 and 2007

Robust Technology: We have developed our own proprietary trading platform which isrobust and among the best in the industry. We have more than 150 technology professionalsconstantly working on upgrading and speeding up all our systems.

Centralised Risk Management System: Unlike many other players we have a centralised

risk management system. This allows us to offer the same levels of service to customersacross all locations.

Exceptional Research: Unlike most other competitors we have our own in house research

team. Our in house research team is among the best in the industry and they have years of experience in the financial markets. They scan through the plethora of stocks and find the

scripts that have a high potential of providing you good returns.Our investors get research Technical, Fundamental, Derivatives, Macro-economic andmutual fund research.

Large Presence: We are present in 448 cities with 1358 offices all over the country. Ouremployee strength extends beyond 4100.



Conclusion

1. Kotak Mahindra Bank is Leading Bank in the country; it provides a variety of products and services to

different segments of customers.

2. The Bank aims to serve customers from teenagers to senior citizens, hence different products are designed

to suit specific requirements of the above.

3. Aims to serve all classes of the society from the salaried middle class to the high income business class.

Customers are categorized and segmented according to their requirements and needs. For Example, the

EDGE Saving Account aims to serve middle class customers so minimum balance required to be

maintained is Rs. 10000. While the PRO and ACE Saving Accounts are targeted at high incomecustomers, the minimum balance requirement is Rs. 20000 and Rs.75000.

4. Customers who are more profitable to the Bank (High Value Customers) are provided special facilities.

Priority Banking is meant to serve these high value customers.

5. The Bank prides itself with the ability to provide differentiate products in the crowed market of saving

accounts. Bank offers the free home baking, special co-branded debit cards (Smart fill Debit Card) whichmakes its product unique.

6. Free add-on cards for relatives.

7. The Bank wants its customers to transact more through Internet Banking and ATM, Rather than the

customers using the branch.

8. The Debit Cards provided by the Bank are Internationally Accepted around the world, hence giving thecustomers the convenience to transact anytime, anywhere.

9. The Bank has tied up with other Banks so that its customers can use other Banks ATM facility for freetransactions

10. The Bank also provides DEMAT account and also sells Mutual Funds, this provides the Bank andGovernment additional revenue

11. The Bank has been very successful in enlarging its customer base during the last couple of years.

12. The Number One Reason of people choosing Kotak Mahindra Bank is the Brand Name/Reputation of the Bank. Hence it should be careful that the Brand name and Goodwill the Bank has earned is not

diluted.

13. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank and

STANDRADCHARTERED.

14. ATM Facility is most popular way to transact with the Bank.



15. Overall the customers appreciate the service and products offered by the Bank and are willing to

recommend the Bank to their acquaintances , But more attention has to paid towards:a. Increasing the number of ATM machines.

b. Improving Internet Banking Facility.

Recommendation

1. Advertising should be done

2. Kotak commodity should take step to educate traders about the

3. profitability and liquidity of the commodity

4. Network development is most essential of this type of organization.

5. If company is seeking to grow their profits , they have to spend

6. considerable time and resources

7. Day today trading activities should be implemented.

8. Kotak should advertise their services regularly

9. The company should maintain a good relationship in reality and improve quick services.



Table Of Contents Reason and Circumstances that led to select Kotak Mahendra Bank

Scope of Placement

Brief Profile of the organization o Overview

o THE JOURNEY SO FAR ...

o Kotak Mahendra Group’s Story

Kotak Group Companies

Vision statement

Business Segment

Group Structure

Retail Liability Structure

Organization Structure Products & Services

Customer types

Corporate Governance

Board Meetings Procedure

ABOUT 'SPiRiT'

BALANCE SHEET OF A BANK

On CRM

Risk Management

INFORMATION TECHNOLOGY The Kotak Way of Working...

Five Reasons to Work with Kotak

Recruitment Policies and process

Employee Benefits

Cost Saving Initiatives

Marketing - Retail Liabilities & Branch Banking

Corporate Responsibility

SWOT ANALYSIS OF KOTAK MAHINDRA BANK.

Competition Comparison Statement

Conclusion

Documents

Kotak Report for College