Niyati Gandhi 1621 Final Report

8/13/2019 Niyati Gandhi 1621 Final Report

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A SUMMER TRAINING PROJECT REPORT

ON

STUDY AND EVALUATION OF BANKING PRODUCTS AND

BASIC CONCEPTS OF ONLINE TRADING OF SHARES

AT

KOTAK MAHINDRA BANK Ltd.

Kotak house, Surat

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT

OFPOST GRADUATE DIPLOMA IN MANAGEMENT

(Approved by AICTE, Government of India)ACADEMIC SESSION 2012-2014

Institute for Technology and Management

Under the Kind Guidance of

Industry Guide:- Faculty Guide:

Ms. Jignesh Raval Prof. B.V.R.Murty(Branch Sales Manager) Deputy Director, ITM GLC

Submitted by

Niyati Gandhi

PGDM -1621


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ACKNOWLEDGEMENT

Its a privilege to be associated with Kotak Mahindra Bank Limited, a Kotak

Group of companies which has emerged as one of the leading financial

conglomerates.

I articulate my sincere gratitude to my project guide Mr. Jignesh Raval (Branch

Sales Manager), who has spend his valuable time and guided me throughout the

training process in spite of his busy schedule, in shaping my project as well as

providing necessary information regarding the project and also for his support in

completing the project.

I am very grateful to thank the employees of the kotak Mahindra bank ltd. who

have been the source of constant inspiration and sharing valuable suggestions

during my banking hours.

I would also like to thank to my Faculty Guide Prof. B.V.R.Murty, DeputyDirector, ITM Navi Mumbai, who helped me by giving necessary feedback

required for my project work.


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DECLARATION

I, NIYATI GANDHI to the best of my knowledge and belief, hereby declare that

the project report entitled STUDY AND EVALUATION OF BANKING

PRODUCTS AND BASIC CONCEPTS OF ONLINE TRADING OF SHARES

is a result of my own work, all facts studied and evaluated presented in this report

are prepared by me in the fulfillment of academic requirement. The training is

done in Kotak Mahindra Bank Limited, K G Point, Kotak House, Surat-395007,

Gujarat for a period of five months, commencing from 2nd January 2013 to 7th

June 2013.

This project work is submitted to Institute for Technology and Management, Navi

Mumbai as well as in Kotak Mahindra Bank Limited. It is not to be used or copied

by any person. Written order has to be taken from appropriate authority.

DATE: Signature

Niyati R.Gandhi


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INDEX

SR.NO. PARTICULARS PAGE NO.

ACKNOWLEDGEMENT

DECLARATION

1 EXECUTIVE SUMMARY 1

2 RESEARCH METHADOLOGY 3

3 INTRODUCTION TO MY PROJECT 5

4 OBJECTIVE OF THE STUDY 5

5 SCOPE OF THE STUDY 6

6 LIMITATIONS OF THE STUDY 6

7 AN OVERVIEW OF KOTAK MAHINDRA BANK 8

8 COMPANY PROFILE 12

9 KOTAKS PRODUCT DETAIL 18

10 INVETSMENT SERVICES 31

11 CONVENIENCE BANKING 37

12 STRATEGIC ALLIANCES 43

13 FINANCIAL OVERVIEW 47

14 INTRODUCTION TO KOTAK SECURITIES 52

15 INTRODUCTION TO CONECPTS OF TRADING 54

16 TREND LINES 65

17 CONCLUSION AND RECOMMENDATIONS 75

18 BIBLIOGRAPHY 78


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EXECUTIVE SUMMARY

The project is based on the sales strategies for the Banking products and

theoretical concepts of online trading with a special references to KOTAK

MAHINDRA BANK.

First and Foremost, the purpose of KOTAK MAHINDRA BANK is to fulfill

the needs for investment under one roof. This project shows, the common

man has started capital market term like bull and bear explode new time. It

gives the detail view of the regulatory framework for the KOTAK

MAHINDRA BANK. The focus to shift to various products of KOTAK

MAHINDRA BANK to cater to the needs such as return explanation,

financial position, etc.

Stock exchange performs activities such as trading in share, securities,

bonds, mutual fund & commodities. Stock Broking industry is growing at an

enormous rate, as more and more people are attracted towards stock

exchanges with the hope of making profits.

But during this period the country also registered a fairly high industrial

growth. The old industries and business establishments who wanted to

expand the activities as well as the new industries and the business

establishments floated shares in the market to raise capital for their

activities. The companies, which registered steady growth, earned

confidence of the people and their shares, were rated high in the market.


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This project report helps the reader to understand the techniques of investing

in the stock market particularly in the secondary market. Some of the proven

techniques have been used in this report to help the reader or investor.

Fundamental Analysis is the study of everything from the overall

economy and industry conditions, to the financial condition and

management of specific companies (i.e., using real data to evaluate a stocks

value).

Technical analysis is the examination of past price movements to

forecast future price movements. Technical analysts are sometimes referred

to as chartists because they rely almost exclusively on charts for their

analysis.


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RESEARCH METHADOLOGY

The methodology followed in this project involves the following phases:-

Methods of Collection of data

Type of the project

Interpretation and recommendation

Methods of Collection of data

The information is collected through both primary sources and secondary

sources during the project. That information was utilized for calculating

performance evaluation and based on that, interpretations were made.

Sources of Primary Data:

The sources of primary data are discussion with my company guide and

various observations.

Sources of secondary data:

Annual reports were used for the required calculations to be made, and for

various information, Draft red herring prospectus, Red herring prospectus

was also used.

Internet data, books, journals, kotak bank website, Wikipedia and various

department of bank were also looked upon.


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Analysis

The data collected laid the foundations for the study and gave a platform for

the analysis and findings which lead to the fulfillment of the objectives. The

data collection and analysis paves way for the recommendation and

conclusion of the study that reveals some important findings regarding the

strategies and policies with reference to kotak Mahindra bank Limited. For

the Financial performance analysis, Ratios analysis was used and for

fundamental and technical analysis of shares, gathered theoretical

knowledge of some basic concepts.

Conclusion and Recommendation

After completion of the entire analysis, interpretation and recommendation

were made on the basis of tables, charts and figures. Statistical tools like

Tables and Charts were used for representing of the data.


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INTRODUCTION TO MY PROJECT

I am doing my 2 year Post graduate diploma course in finance from Institute

for technology and management so as a partial fulfillment of requirement of

my summer internship, a project has been prepared on study and evaluation

of banking products and basic concepts on online trading of shares in which

financial performance of the company using various ratios has been analysed

and which CASA products are suitable for a particular category of people

have been learnt and finally gathered the theoretical knowledge on basic

concepts on online trading used during fundamental and technical analysis.

OBJECTIVE OF THE STUDY

Study of banking products gives a better knowledge of which CASA

products are suitable for a particular group of people.

Study how new distribution channels such as Internet Banking, ATM

facility, Phone Banking have changed the face of the Banking

industry.

Understand various current account products available. (Edge, Pro,

Ace)

Understand various savings account products. (Edge, Pro, Ace)

Understand various other facilities provided by the bank to customers.

To understand financial position of the company with the help of ratio

analysis.


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To understand the online share trading through various theoretical

concepts which are helpful during fundamental and technical analysis.

Understand various chart patterns used.

SCOPE OF THE STUDY

The study was done in the partial requirement of fulfillment of my

post graduate diploma in management course in finance stream. Kotak

Mahindra bank ltd.is one of the leading financial institution. The studyis based on the kotak banks product offered to the customers and

concepts of online share trading followed by kotak house and to

understand the financial performance of the company. The branches

of kotak bank follow similar practices which are outside the scope of

the study.

Study was based on published documents by kotak Mahindra bank ltd.

and other notable authorities.

LIMITATIONS OF THE STUDY

Inadequacy of required data is the main constraint. Usually banks do

not provide with financial documents as things are to be kept secret.

In such cases data is taken with certain assumption.

Dealing with customers is always the common constraint for all. To

convince for CASA products to customers was not easy.


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Time is definitely a constraint. Time was insufficient to assess all

processes and policies of an organization of KMBL.

As data is secondary, so it cannot be said to give constant conclusions,

as it is not revised to present situation.


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AN OVERVIEW OF KOTAK MAHINDRA BANK

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 services around 2 million customer accounts.

THE JOURNEY SO FAR ...


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

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

Kotak Mahindra (FCKM) held by Kotak Group. In May 2006, Kotak Group

bought 25% stake held by Goldman Sachs in Kotak Capital and Kotak

Securities.

Story of Kotak

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

Discounting.

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

market.

1990: The Auto Finance division is started.


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

of Indias largestfinancial retail marketing networks.

1992: Enters the Funds Syndication sector.

1995: Brokerage and Distribution businesses incorporated into a separate

companyKotak Securities. Investment Banking division incorporated into

a separate companyKotak 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 Groups entry into information

distribution.

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

Asset Management Company.

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

business. Kotak Securities launches its on-line broking site (now

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

through setting up of Kotak Mahindra Venture Capital Fund.

2001: Matrix sold to Friday Corporation Launches Insurance Services.
http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/


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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.


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COMPANY PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of

Indias most reputed financial organizations. In Feb 2003, KotakMahindra

Finance Ltd., the groups flagship company was given thelicense to carry on

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

banking history since Kotak Mahindra Finance Ltd is the first company in

India to convert to a bank. The license authorizing the bank to carry on

banking business has been obtained from the RBI in tune with Section 22 of

the Banking Regulation Act 1949.

KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and

Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management

Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement

of Business on 11th Feb 1986.

The bank customers have access to entire VISA network of 4500 ATMS in

India and 800000ATMS worldwide accepted in more than 56000

establishments across India and 10 million worldwide. The customer also

has access to over 800 ATMs with sharing arrangements with UTI BANK,

of these 125 are in the NCR.


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KOTAK stands for: -

K: Knowledge and competence

O: Offering Innovative and Proactive solutions

T: Transparent and Fair

A: Approachable and Warm to build Relationships

K: Keeping it simple for your customers to help them understand better.

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 mans needs are unlimited. The

Infinite Ka symbolises that we have an infinite number of ways to meet

those needs.

Kotak Group Companies

Kotak Mahindra Bank

The Kotak Mahindra Groups 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 toconvert into a Bank. Its banking operations offers a central platform for

customer relationships across the groups various businesses. The bank has a

presence in the Commercial Vehicles, Retail Finance, Corporate Banking,

Treasury and Housing Finance.


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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 Advisory Services, 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


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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.


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Group Structure


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KOTAKS PRODUCT DETAIL

Product Detail

Kotak Mahindra Bank is one of the prominent subsidiaries of Kotak

Mahindra group. The activities of the company being parallel to its objective

are very wide and cover all the components of a Bank. The Basic area of

Operations is the Banking business, other products are meant for the regular

revenue generation. Being a Banking house, the company is in regular touch

with Banking Accounts, Investment Services, Convenience Banking and

Other Services.

They offer complete solutions that address all your financial requirements,

whether you're an individual or a firm. From everyday banking to long term

investments their offering covers it all. This wide range of products isdelivered to you with a genuine understanding of your specific need and

warm, personalised service.

Kotak Mahindra Bank, it's not about selling you many different products

it's about working out a holistic, pragmatic solution that addresses your

financial needs. Through their varied products,they commit themselves to

becoming banker to the customer rather thanbeing asset financier to our

customers.


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Banking Accounts

There are three types of banking account:

Savings Account

Current Account

Term Deposit

SAVINGS ACCOUNT

Choose from our range of Savings Accounts

KOTAK MAHINDRA has got a variety of options of savings accounts tochoose from for its customers according to their convenience and

requirements .These savings accounts offer attractive returns along with

personalized banking services at three convenient average quarterly

balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS

ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGS ACCOUNT) and at

Rs75000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly

balance levels as well the corresponding services and benefits try to ensure

the various customer needs and requirements.


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Thus the three account opening options in savings account are as mentioned

above:

1. EDGE SAVINGS ACCOUNT:

Kotak Mahindra Banks Edge Savings Account is a complete financial

package customized to suit individual banking needs. Its constant endeavour

is to enable regular financial transactions through online platform so that

most of payments can be made directly through your account or card.

Features & Benefits

Wide ATM access through the Kotak Mahindra Bank Debit Card

One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or

enquire balance at no extra charge!

Multiple Access Channels Access

An account through phone, mobile phone or internet to get information

about account balance or track transactions. One can even transfer funds

through Phone Banking or Net Banking.

Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills,

credit cards, online trading of shares or even online shopping.


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Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available

across 15 locations through Net Banking. Also get a multicity cheque book

so that money from account is received by the beneficiary in the fastest

possible time.

Free investment account

One can open an investment account, and use the Net Banking facility to

purchase/redeem mutual funds online while directly debiting / crediting your

Bank Account. Besides this you get a consolidated view of all your mutual

fund investments across schemes with updated returns status, latest NAV

information and research reports.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility

that automatically sweeps out idle funds, above a threshold, from your

account into Term Deposits. These Term Deposits sweep back into your

account to meet fund requirements when your withdrawals exceed the

balance available in your account, thereby providing you maximum

liquidity.

2. PRO SAVINGS ACCOUNT:Kotak Mahindra Banks Pro Savings Account is an account packed with

powerful features to provide a superior banking experience at a very

comfortable balance requirement. They provide a relationship manager who

will specifically take care of banking and investment needs.


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Features & Benefits

Free ATM access all domestic VISA ATM network

Walk into any VISA ATM in India to check balance or withdraw cash

absolutely free. no longer have to worry about locating your Bank or Partner

Bank ATMUse the first VISA ATM that you spot, for cash withdrawal or

balance enquiry transactions.

Multiple access channels

Access your account through phone, mobile phone or internet to get

information on your account balance or track your transactions. You can

even transfer funds through Phone Banking or Net Banking.

Free investment account

One can open an investment account, and use the Net Banking facility to

purchase/redeem mutual funds online while directly debiting / crediting bank

account. Besides this get a consolidated view of all the mutual fund

investments across schemes with updated returns status, latest NAV

information and research reports.


Use our free Payment Gateway to make online payments for utility bills,

credit cards, online trading of shares or even online shopping.


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Quick funds transfer to a third party account with another Bank is available

across 15 locations through Net Banking. Also get a multicity cheque book

so that money from account is received by the beneficiary in the fastest

possible time

Attractive returns



account into Term Deposits. These Term Deposits sweep back into your

account to meet fund requirements when your withdrawals exceed the

balance available in your account, thereby providing you maximum

liquidity.

Dedicated relationship manager

You get a one point contact for all your banking related queries and

transactions. Your relationship manager will also help you with financial

planning and sound investment decisions.

Free banking transactions

You can issue demand drafts or send cheques for collection on branch

locations without any charge to your account.

3.ACE SAVINGS ACOUNT:Kotak Mahindra Bank's Ace Savings Account has been designed as a

gateway to a world of financial benefits and privileged banking transactions.


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The account carries benefits ranging from personal investment advisory

services to concierge services to free banking transactions. Onewill find that

this package of services and privileges is unmatched by any other savings

account in the market.

Features & Benefits

Free access at all domestic and international VISA ATMs

No longer have to worry about locating your Bank or Partner Bank ATM -

Use the first VISA ATM that you spot, for free cash withdrawal or balance

enquiry transactions. So walk into any VISA ATM in India or abroad to

withdraw cash or for balance enquiry.

Multiple access channels

Access the account anytime through land line, mobile phone or internet to

get information on account balance or track transactions. One can even

transfer funds through Phone Banking or Net Banking.


Use the free Kotak Payment Gateway to make online payments for utility

bills, credit cards, online trading of shares or even online shopping. All this

at the click of a mouse!


Transfer funds easily and with speed, to a beneficiary account at another

bank. One can avail of this facility by walking into any of branches or by


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simple logging on to Net Banking. Also get a free multi-city cheque book so

that money from your account is transferred to the beneficiary's account at

any of branch locations, in the fastest possible time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all branches

for no extra charge.

Attractive returns



account into Term Deposits. These Term Deposits sweep back into account

to meet fund requirements when withdrawals exceed the balance available in

the account, thereby providing maximum liquidity.

CURRENT ACCOUNT

Kotak Mahindra Bank offers unparalleled advantages with its three Current

Account offerings. Whether small/ mid size business or an enterprise spread

across multiple locations in the country, would find a Current Account that's

just designed for you. These Current accounts offer attractive returns along

with personalized banking services at three convenient average quarterly

balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS

ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at

Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly


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balance levels as well the corresponding services and benefits try to ensure

the various customer needs and requirements. With features ranging from

Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free

Trading Account & free Demat Account, and more! Thus the three account

opening options in savings account are as

mentioned above:

1. Edge Current Account

In need of a well equipped bank account to keep pace in all the business

endeavors. They offer the Kotak Edge Current Account, armed with Kotak

2-Way Sweep and the entire gamut of Banking Privileges, providing that

extra edge to get ahead. The feature rich Kotak Edge Current Account is the

ideal way to make money work harder.

Features & Benefits

Multi City Banking

Current account/s with Kotak Mahindra Bank will be recognized in every

other branch. One can just walk into a Kotak Mahindra Bank branch in any

of our branches across country to satisfy all the banking needs.

2 - Way Sweep: Term Deposit linked Current Account

Kotak 2-Way Sweep ensures that money never stops working for you. Daily

balances, above a threshold level, in Current Account are automatically

swept out into Term Deposits (TD). This 'swept out amount' is brought back

into account to meet fund requirements when withdrawals exceed the


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balance available in the account (or when the account balance goes below

the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin

advantages of attractive

returns & maximum liquidity.

Free Demand Drafts and Pay Orders

Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra

Bank Branch location in India.

At-par Cheques

Get free At-par Cheques that are treated as 'local clearing' cheques across all

branch locations. All these at nominal costs.

Cheque Collection

All Outstation cheques, drawn on any of branch locations, are collected 'at

nominal charge' for you. The strong network of correspondent banks enables

us to collect cheques from 1600 locations across India at faster speed and

minimal cost

Mobile Banking and Alerts

Our Mobile Banking & Alerts service enables to access bank account on

Mobile Phone. One can access all your standing instructions (SI), any large

credits or debits, available balance, balance below AQB, any SI failure and

SIs successfully executed will be intimated to you via SMS


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TERM DEPOSITS

Key Features

Ease and convenience of operation

Liquidity through overdraft or sweep-in facility

No penalty on pre-mature encashment

Nomination facility available

Give your portfolio stability of returns and safety and liquidity. Invest in

Kotak Bank Term Deposit. It offer attractive returns on term deposits andinvesting in them is really simple and convenient.

Features & Benefits

Ease and convenience of operation

For the first time in India, New to Bank customer can also apply online for

term deposit. An existing customer,can place a term deposit through Phone

Banking or Net Banking. What's more, one can even renew this deposit by

placing an instruction over phone. Needless to mention, he

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


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Liquidity through overdraft or sweep-in facility

Deposit will be available to you should you need them in case of an

emergency. One can avail upto 85% overdraft against term by paying 2%

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

a tenure of 181 days or more. One can also choose to link term deposit to

savings / current account, whereby if need be, term deposit will

automatically be encashed to meet withdrawal requirement.

No penalty on pre-mature encashment

In case term deposit is pre-maturely encashed,one will earn interest at the

rate prevailing on the date of deposit for the withdrawn amount.

Nomination facility available

One can avail this facility for each & every account that open with us i.e.

nominate different persons for different term deposit accounts can choose to

change the nominee through a declaration in the appropriate form to revise

the nomination during the term of the deposit.


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INVETSMENT SERVICES

Making your money grow

At Kotak Mahindra Bank,can recognise that financial needs vary, not just

amongst individuals, but across the different stages of your life. They have

years of experience in helping people put together an investment portfolio

that works best for them.

DEMAT

Key Features

Efficient depository services that allow you to hold your shares in

convenient, "demat" formats

Leverage opportunities in the stock-market when you spot them


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It offers streamlined, efficient depository services that allow to hold shares

in the convenient "demat" formats and leverage opportunities in the stock-market when you spot them Being a brokerage house, the company is in

regular touch with the share market and its relative indexes like NSE &BSE,

NCDEX. NSDL, CSDL. Lets understandthe relative terms :

SEBI (Stock Exchange board of India)

It check out on NSE and BSE and all type of share trading (Both primary

and secondary market)

NSE &BSE

Kotak Mahindra Bank allows to costumer to trade in share with NSE and

BSE both (in primary and secondary market both). In BSE costumer can

trade in 2452 stocks and in NSE costumer can trade in 933 companies. The

index of NSE is Nifty and for BSE Sensex

NSDL AND CSDL

Kotak Mahindra Bank allow to costumer to invest in mutual fund and bonds.

NSDL (National security depository limited) and CSDL (Central security

depository limited) check out on this type of investment

MCX AND NCDEX

Kotak Mahindra Bank also allow to costumer to trade in commodity by

MCX (Multi Commodity exchange) and NCDEX (National Commodity

daily exchange. In NCDEX 55 commodity are to trade


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INVESTMENT PRODUCTS OFFERED BY KOTAK MAHINDRA

BANK

The following are the various products of Kotak Mahindra Bank:

DEMAT & ON LINE TRADING ACCOUNT :

The 3-in-1 account integrates your banking, broking and demat accounts.

This enables you to trade in shares without going through the hassles of

tracking settlement cycles, writing cheques and Transfer Instructions,

chasing your broker for cheques or Transfer Instructions etc.

INITIAL PUBLIC OFFERS(IPOS)

In the above products we have discussed investment in equity through

secondary markets .another way of investing in equity markets is through the

primary market route .whenever a company comes out with an initial public

offering you may choose to apply for the share. Based on number of valid

application received, the company would then allot the share to applicants.

The offline way of investing in an IPO is by filling physical application

forms, cheques. And submitting the forms through your broker. With

KOTAK MAHINDRA BANK all you have to do is filling number of share

on the site and submit.

DERIVATIVES

Customers wi th different types of risk profile can use derivatives.

Hedging the cash market positionideal for low risk profile.


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Taking advantage of arbitrage opportunity in equity and derivatives

marketsideal for low risk profile

Taking a view on stock/index for as long as 3 month periodmedium risk

profile

Speculative trading-high risk profile

KOTAK MAHINDRA BANK offers online investment in future and option,

with benefit of automated settlements and online risk monitoring system

Mutual Funds

Key Features

Assitance at every step of the investment process

An experienced research team to analyse and research the Mutual Fundsavailable in the market

Portfolio assistance

The team analysis and researches the Mutual Funds available in the market,

helping you make more informed decisions. The recommendations take into

account all relevant factors including the investment philosophy of the Asset

Management Company, portfolio quality, risk-adjusted returns and market

trends.


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The Mutual funds on advisory list range form Debt to Equity funds and are

drawn from top performing schemes of renowned Mutual Fund houses like

Franklin Templeton, Kotak, Reliance, Prudential ICICI etc.Relationship

Manager will recommend the funds that suit the investment objectives.

Instead of buying shares of different companies tracking the price

movements performance of the company,growth prospects of the industries

etc. and then taking your own buy/sell decision, you may consider making

investment in equity/debt market through the mutual fund route. Mutual

fund is a SEBI registered entity that pools the money of many individuals

investors to purchase the stocks, bond or other financial instruments.

Professional

Management and diversification are the two primary benefits of mutual fund

investing. For beginners, or for customer who are unable to spend time on

researching stocks themselves, mutual fund is an ideal route for a investment

in equity. Investing in mutual funds offline involves, tracking down the

agents appointed by the mutual funds AMCs, filling lengthy forms, writing

cheque, rushing to the office of the agents before the cut off timing to ensure

that the desired NAV is allotted


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BANK ASSURANCE

They offer a range of carefully selected insurance policies across the entire

spectrum of life insurance products Relationship managers will analyze your

insurance needs and develop the solution that works best for you.

KOTAK INSURANCE has a wide array of insurance plans that have been

designed with the philosophy that different individuals are bound to have

differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of

the individual that will depend on the age and life stage of the individual

apart from a host of other factors.

The various plans offered by KOTAK INSURANCE are as follows:

Kotak Smart Advantage Plan

Kotak Eternal Life Plans

Kotak Headstart Child Plans

Kotak Safe Investment Plan II

Kotak Flexi Plan

Kotak Easy Growth Plan

Kotak Capital Multiplier Plan

Kotak Term Plan

Kotak Preferred Term Plan


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CONVENIENCE BANKING

Anywhere, Anytime Banking

In today's day and age time is money. You work hard and have a busy

schedule. Doing banking should be easy and convenient and not add to

worries.

Kotak Mahindra Bank realize this and have specially tailored a wide range

of value added products and services to make money work for you. These,

coupled with the highest standard of customer care will make life simpler

and easier.

Multiple Banking Channels

Today the technology driven banks are finding various means to reduce

costs and reach out to as many customers as possible spread over a diverse

area. This has led to using multiple channels of delivery of their products.


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ATM (Automatic Teller Machine) :

An ATM is basically a machine that can deliver cash to the customers on

demand after authentication. However, nowadays we have ATMs that are

used to vend different FMCG products also. An ATM does the basic

function of a banks branch, i.e., delivering money on demand. Hence

setting of newer branches is not required thereby significantly lowering

infrastructure costs.

Cost reduction is however possible only when these machines are used. In

India, the average cash withdrawal per ATM per day has fallen from 100 last

years to 70 this year. Though the number of ATMs has increased since last

year, it is not in sync with the number of cards issued. Also, there are many

dormant cardholders who do not use the ATMs and prefer the teller

counters. In spite of these odds, Indian banks are increasing the number of

ATMs at a feverish pace. These machines also hold the keys to future

operational efficiency Account holders of Kotak Mahindra Bank Saving

Account having Visa Electron Debit Card can access other Banks ATM

machines unlimited times per month for free, after that the Account holder

has to pay nothing for the transaction. But also holders of ATM cards cannot

access machines belonging to other Banks.


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Net Banking:

Net banking means carrying out banking transactions via the Internet. Thus

the need for a branch is completely eliminated by technology. Also this

helps in serving the customer better and tailoring products better suited for

the customer.

A customer can view his account details, transaction history, order drafts,

electronically make payments, transfer funds, check his account position andelectronically communicate with the bank through the Internet for which he

may have wanted to visit the bank branch. Net banking helps a bank spread

its reach to the entire world at a fraction of the cost

Phone Banking:

This means carrying out of banking transaction through the telephone. A

customer can call up the banks help line or phone banking number to

conduct transactions like transfer of funds, making payments, checking of

account balance, ordering cheques, etc. This also eliminates the customer of

the need to visit the banksbranch.


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Mobile Banking

Banks can now help a customer conduct certain transactions through the

Mobile Phone with the help of technologies like WAP, SMS, etc. This helps

a bank to combine the Internet and telephone and leverage it to cut costs and

at the same time provide its customer the convenience. Thus it can be seen

that tech savvy banks are tapping the entire above alternative channels to cut

costs improve customer satisfaction

SMS Banking

Kotak Mahindra Bank's SMS Banking service enables you to access your

bank account, investment account and demat account on your Mobile Phone.

Now get latest update on your account balance, salary credits, large debits,

large credits, holding value and much more, on your mobile anytime.

INTERNET BANKING

INTRODUCTION

The Internet banking is changing the banking industry and is having the

major effects on banking relationships. Internet banking involves use of

Internet for delivery of banking products & services. It falls into four main

categories, from Level 1 - minimum functionality sites that offer only access

to deposit account data - to Level 4 sites highly sophisticated offerings


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enabling integrated sales of additional products and access to other financial

services- such as investment

and insurance.

DRIVERS OF CHANGE

Advantages previously held by large financial institutions have shrunk

considerably. The Internet has leveled the playing field and afforded open

access to customers in the global marketplace. Internet banking is a cost-

effective delivery channel for financial institutions. Consumers are

embracing the many benefits of Internet banking. Access to one's accounts at

anytime and from any location via the World Wide Web is a convenience

unknown a short time ago.

The primary drivers of Internet banking are:

Improve customer access

Facilitate the offering of more services

Increase customer loyalty

Attract new customers

Internet Banking is the most technological advanced means to do Banking.

Through this medium the Account holder can do various types of

transactions without having to leave his Office/Residence. The Account

holder has the convenience to do transaction no matter where he is in the

world at any time of the day. Internet is the most cost effective medium of


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Banking from the point of view of the Banks it costs a fraction to the Bank

as compared to other mediums like Branch Banking or ATM.

But this medium is not as favored a medium as it in the west , the reasons for

this is that firstly , this is a relatively new concept in India ,secondly ,

general perception that this is not safe , thirdly , computers and internet are

not widely spread all over the country.


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STRATEGIC ALLIANCES

NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking Technology

(IDRBT), a group established by the Reserve Bank of India (RBI) in 1996,

has planned to set up a national switch to hook up all of the country's

10,000-odd ATMs.

The idea of establishing ATM interconnectivity through a national switch

has been approved by the information chiefs of various Banks. The expected

cost of transactions routed through the switch is to be under 10 rupees (21

cents U.S.) each, due to the high volumes of transactions -- almost 100,000

per day.

CASH NET

It is an Alliance between Citibank, Industrial Development Bank of India,

Kotak Mahindra Bank and UTI Bank. This is the country's first independent

shared ATM network.

IDBI Bank received permission from the Reserve Bank (RBI) to serve as the

network's settlement bank.


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Bank are busy working it is important that they can find a way to visit the

Bank without having to miss out on work.

The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm,

the Bank is open to the public for ten hours. These timings are convenient

for especially those Account holders who are working, these people can visit

the Bank after their Office finishes.

Apart from the Average Banking Hours Kotak Mahindra Bank offers to its

Account holders 24 Hour Branch, 365 Days Branch and the facility of

Sunday Banking.

Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in

India, this is a big boon for people who cannot take the time out to visit the

Bank during the normal working hours and is also very handy during

emergencies.

The 365 Day Branch of Kotak Mahindra Bank is also unique and the only

other Bank offering this service is ABN Amro , this Branch is open

regardless of the fact that it is a Sunday or a public holiday. Sunday Banking

is very useful for people who are busy throughout the week and the only day

when they find the time is Sunday. Other Banks offering this service apart

from Kotak Mahindra Bank are ABN Amro and CITIBANK.


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Best Compliments Cardthe perfect gift

Introducing Best Compliments Card - the prepaid card from Kotak Mahindra

Bank. It lets your loved ones choose their own gift or shop or enjoy at any

place that accepts Visa cards, be it a shopping mall, a restaurant or a

multiplex. So go ahead and give someone the perfect gift!

No Kotak Mahindra Bank account required

Not restricted to a single brand or outlet - accepted at over 3 lakhs

merchant establishments in India that accept Visa cards

Can be used at your convenience- no need to spend the entire value in

a single purchase

Attractively packaged and ready-to-gift

Available at all Kotak Mahindra Bank branches

Valid for two years from date of issue of card


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FINANCIAL OVERVIEW

Annual results in brief

(Rs crore)

Mar ' 13 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

Sales 8,042.49 6,180.24 4,303.56 3,255.62 3,065.14

Operating profit 5,648.21 4,290.33 2,613.15 1,580.34 1,614.79

Interest 4,836.82 3,667.75 2,058.49 1,397.48 1,546.60

Gross profit 2,156.61 1,655.01 1,324.79 1,297.00 679.99

EPS (Rs) 18.23 14.65 11.10 8.06 3.99

Annual results in details


Other income 1,160.67 977.35 633.04 628.24 357.86

Stock adjustment - - - - -

Raw material - - - - -

Power and fuel - - - - -

Employee expenses 1,051.18 872.19 751.15 555.79 -

Excise - - - - -

Admin and selling expenses - - - - -

Research and development expenses - - - - -

Expenses capitalised - - - - -

Other expenses 1,158.55 962.64 802.17 633.60 1,196.42

Provisions made 184.55 55.08 137.09 485.89 253.93

Depreciation - - - - -

Taxation 611.34 514.87 369.52 250.00 149.96

Net profit / loss 1,360.72 1,085.05 818.18 561.11 276.10


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Profit loss account

(Rs crore)


Income

Operating income 8,042.49 7,032.28 4,739.06 3,655.79 3,262.68

Expenses

Material consumed - - - - -

Manufacturing expenses - - - - -

Personnel expenses 1,075.14 902.36 783.83 583.48 583.63

Selling expenses - 130.86 103.25 53.81 66.78

Adminstrative expenses 1,002.06 604.67 543.24 720.13 613.64

Expenses capitalised - - - - -

Cost of sales 2,077.20 1,637.89 1,430.32 1,357.41 1,264.05

Operating profit 1,128.47 1,726.64 1,250.25 900.90 452.03

Other recurring income 1,160.66 13.86 18.94 26.14 42.00

Adjusted PBDIT 2,289.14 1,740.50 1,269.20 927.05 494.03

Financial expenses 4,836.82 3,667.75 2,058.49 1,397.48 1,546.60

Depreciation 132.53 116.76 98.27 90.00 69.56

Other write offs - - - - -

Adjusted PBT -2,680.21 -2,044.00 -887.55 837.05 424.47

Tax charges - 514.88 369.52 250.00 149.96

Adjusted PAT - 1,084.49 818.16 564.05 275.82

Non recurring items - 0.56 0.02 -2.94 0.27

Other non cash adjustments - - - 2.01 -

Reported net profit 1,360.72 1,085.05 818.18 563.11 276.10

Earnigs before appropriation 3,523.51 2,579.57 1,784.09 1,212.06 804.27

Equity dividend 52.38 44.49 36.88 29.66 25.96

Preference dividend - - - - -

Dividend tax 7.29 7.22 4.37 - 1.86

Retained earnings 3,463.84 2,527.86 1,742.84 1,182.40 776.45


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Balance sheet(Rs crore)


Sources of funds

Owner's fund

Equity share capital 373.30 370.34 368.44 348.14 345.67

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 9,091.19 7,610.41 6,464.95 4,191.78 3,559.86

Loan funds

Secured loans - - - - -

Unsecured loans 51,028.77 38,536.52 29,260.97 23,886.47 15,644.93

Total 60,493.26 46,517.28 36,094.36 28,426.38 19,550.46

Uses of funds

Fixed assets

Gross block 464.42 955.41 831.80 745.34 460.61

Less : revaluation reserve - - - - -

Less : accumulated depreciation - 505.45 406.20 317.69 247.25

Net block 464.42 449.97 425.61 427.65 213.36

Capital work-in-progress - - - - -

Investments 28,873.43 21,566.81 17,121.44 12,512.66 9,110.18

Net current assets

Current assets, loans & advances 50,666.68 1,935.91 1,503.33 1,420.69 1,622.33

Less : current liabilities & provisions 2,789.81 2,553.67 3,032.36 2,869.42 3,257.34

Total net current assets 47,876.87 -617.76 -1,529.03 -1,448.73 -1,635.01

Miscellaneous expenses not written - - - - -

Total 77,214.72 21,399.01 16,018.01 11,491.58 7,688.52

Notes:

Book value of unquoted investments - - - - -

Market value of quoted investments - - - - -

Contingent liabilities 29,301.30 23,485.52 16,761.36 7,219.79 5,674.45

Number of equity sharesoutstanding (Lacs) 7466.09 7406.90 7368.72 3481.41 3456.69


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Ratios

(Rs crore)


Per share ratios

Adjusted EPS (Rs) 18.23 14.64 11.10 16.20 7.98

Adjusted cash EPS (Rs) 20.00 16.22 12.44 18.79 9.99

Reported EPS (Rs) 18.23 14.65 11.10 16.12 7.99

Reported cash EPS (Rs) 20.00 16.23 12.44 18.70 10.00

Dividend per share 0.70 0.60 0.50 0.85 0.75

Operating profit per share (Rs) 15.11 23.31 16.97 25.88 13.08

Book value (excl rev res) per share EPS (Rs) 126.77 107.75 92.74 130.40 112.98

Book value (incl rev res) per share EPS (Rs) 126.77 107.75 92.74 130.40 112.98

Net operating income per share EPS (Rs) 107.72 94.94 64.31 105.01 94.39

Free reserves per share EPS (Rs) - 87.75 76.84 102.80 89.63

Profitability ratios

Operating margin (%) 14.03 24.55 26.38 24.64 13.85

Gross profit margin (%) 12.38 22.89 24.30 22.18 11.72

Net profit margin (%) 14.78 15.39 17.19 15.23 8.35

Adjusted cash margin (%) 16.22 17.04 19.26 17.76 10.45

Adjusted return on net worth (%) 14.37 13.58 11.97 12.42 7.06

Reported return on net worth (%) 14.37 13.59 11.97 12.35 7.06

Return on long term funds (%) 65.48 65.99 47.50 48.71 50.50

Leverage ratios

Long term debt / Equity - - - - -

Total debt/equity 5.39 4.83 4.28 5.26 4.01

Owners fund as % of total source 15.64 17.15 18.93 15.97 19.97

Fixed assets turnover ratio 0.11 0.12 5.70 4.90 7.08

Liquidity ratios

Current ratio 18.16 0.75 0.49 0.49 0.49

Current ratio (inc. st loans) 0.94 0.04 0.04 0.05 0.08

Quick ratio 18.95 16.85 10.86 8.46 5.91


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INTRODUCTION TO KOTAK SECURITIES

Kotak Mahindra has international partnerships with Goldman Sachs(one of the world's largest investment banks and brokerage firms), Ford

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

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

Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stock-

broking and distribution arm of the Kotak Mahindra Group. The institutional

business division, which provides AKSESS, primarily covers secondary

market broking. It caters to the needs of foreign and Indian institutional

investors in Indian equities (both local shares and GDRs). The division also

has a comprehensive research cell with sectoral analysts covering all the

major areas of the Indian economy.

Kotak Securities Ltd. is India's leading stock broking house with a

market share of around 8.5 % as on 31st March. Kotak Securities Ltd. has

been the largest in IPO distribution.

The company has a full-fledged research division involved in Macro

Economic studies, Sectorial research and Company Specific Equity

Research combined with a strong and well networked sales force whichhelps deliver current and up to date market information and news.

Kotak Securities Ltd is also a depository participant with National

Securities Depository Limited (NSDL) and Central Depository Services


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Limited (CDSL), providing dual benefit services wherein the investors can

use the brokerage services of the company for executing the transactions and

the depository services for settling them.

Kotak Securities has 195 branches servicing more than 2,20,000

customers and a coverage of 231 Cities. Kotaksecurities.com, the online

division of Kotak Securities Limited offers Internet Broking services and

also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 2500 crores of Assets

Under Management (AUM) .The portfolio Management Services provides

top class service, catering to the high end of the market. Portfolio

Management from Kotak Securities comes as an answer to those who would

like to grow exponentially on the crest of the stock market, with the backing

of an expert.


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INTRODUCTION TO CONECPTS OF TRADING

FUNDAMENTAL AND TECHNICAL ANALYSIS:

Fundamental analysis

The basic purpose of buying a security is to earn dividends and

ultimately sell it at higher price. An investor therefore is interested in

obtaining estimates of future prices of the share. These in turn will depend

upon the performance of the industry to which the company belongs and the

general economic situation of the country. The multitude of factors affecting

a companys profitability can be broadly classified as:

1. Economic wide factors: these includes the factors like growth rate ofthe economy, the rate of inflation, foreign exchange rates etc which

affects profitability of all companies.

2. Industry wide factors: these include factors which are specific to

industry to which the company belongs. For instance the demand

supply gap in the industry, the emergence of substitutes, and changesin government policies towards industry affects the company

belonging to an industry.


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3. Company wide factor: these factors are specific to a firm. The firm

specific factors like plant and machinery, the brand image of the

product, and ability of the management to affect the profitability.

Fundamental analysis considers the financial and economic data that

may influence the viability of a company. There are many flavors of

fundamental analysis centered on such concepts as value, growth and

turnarounds. Technical analysis is the study of the price chart. It assumes

that by looking at the progress of that little squiggly line you can forecast the

future trend of a stock. Fundamental analysis is essential to most investors,

and technical analysis is essential to most traders and speculators.

An investor with rational and scientific approach will therefore be

interested in analyzing the influence of the expected performance of the

company, industry and economy as a whole on share prices, even before

taking the investment decision such analysis is called fundamental analysis.

Fundamental analysis is the method of evaluating securities by

attempting to measure the intrinsic value of a particular stock. It is the study

of everything from the overall economy and industry conditions, to the

financial condition and management of specific companies (i.e., using real

data to evaluate a stocks value). The method utilizes items such as

revenues, earnings, return on equity and profit margins to determine a

companys underlying value and potential for future growth.


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One of the major assumptions under fundamental analysis is that,

even though things get mis priced in the market from time to time, the price

of an asset will eventually gravitate toward its true value. This seems to be a

reasonable bet considering the long upward march of quality stocks in

general despite regular setbacks and periods of irrational exuberance. The

key strategy for the fundamentalist is to buy when prices are at or below this

intrinsic value and sell when they got overpriced.

Technical analysis:

Technical analysis is the examination of past price movements to

forecast future price movements. Technical analysts are sometimes referred

to as chartists because they rely almost exclusively on charts for their

analysis.

Moving Average:

A Moving Average is an indicator that shows the averagevalue of a

security's price over a period of time. When calculating a moving average, a

mathematical analysis of the security's average value over a predetermined

time period is made. As the securities price changes, its average price

moves up or down.


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There are several popular ways to calculate a moving average. Meta

Stock for Java calculates a "simple" moving average--meaning that equal

weight is given to each price over the calculation period.

Interpretation:

The most popular method of interpreting a moving average is

to compare the relationship between moving averages of the security's price

with the security's price itself. A buy signal is generated when the security's

price rises above its moving average and a sell signal is generated when thesecurity's price falls below its moving average.

This type of moving average trading system is not intended to get you

in at the exact bottom nor out at the exact top. Rather, it is designed to keep

you in line with the security's price trend by buying shortly after the

security's price bottoms and selling shortly after it tops.

The critical element in a moving average is the number of time

periods used in calculating the average. When using hindsight, you can

always find a moving average that would have been profitable. The key is to

find a moving average that will be consistently profitable. The most popular

moving average is the 39-week (or 200-day) moving average. This moving

average has an excellent track record in timing the major (long-term) market

cycles.


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Advantages:

The advantage of moving average system of this type (i.e., buying and

selling when prices break through their moving average) is that you will

always be on the "right" side of the market: prices cannot rise very much

without the price rising above its average price. The disadvantage is that you

will always buy and sell some late. If the trend does not last for a significant

period of time, typically twice the length of the moving average, you will

lose your money.

Support and Resistance:

Support and resistance represent key junctures where the forces of

supply and demand meet. In the financial markets, prices are driven by

excessive supply (down) and demand (up). Supply is synonymous with

bearish, bears and selling. Demand is synonymous with bullish, bulls and

buying. These terms are used interchangeably throughout this and other

articles. As demand increases, prices advance and as supply increases, prices

decline. When supply and demand are equal, prices move sideways as bulls

and bears slug it out for control.

What Is Support?

Support is the price level at which demand is thought to be strongenough to prevent the price from declining further. The logic dictates that as

the price declines towards support and gets cheaper, buyers become more

inclined to buy and sellers become less inclined to sell. By the time the price


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reaches the support level, it is believed that demand will overcome supply

and prevent the price from falling below support.

Support does not always hold and a break below support signals that

the bears have won out over the bulls. A decline below support indicates a

new willingness to sell and/or a lack of incentive to buy. Support breaks and

new lows signal that sellers have reduced their expectations and are willing

sell at even lower prices. In addition, buyers could not be coerced into

buying until prices declined below support or below the previous low. Once

support is broken, another support level will have to be established at a

lower level.

Where Is Support Established?

Support levels are usually below the current price, but it is not

uncommon for a security to trade at or near support. Technical analysis is

not an exact science and it is sometimes difficult to set exact support levels.

In addition, price movements can be volatile and dip below support briefly.

Sometimes it does not seem logical to consider a support level broken if the

price closes 1/8 below the established support level. For this reason, some

traders and investors establish support zones.

What Is Resistance?

Resistance is the price level at which selling is thought to be strong

enough to prevent the price from rising further. The logic dictates that as the

price advances towards resistance, sellers become more inclined to sell and

buyers become less inclined to buy. By the time the price reaches the


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resistance level, it is believed that supply will overcome demand and prevent

the price from rising above resistance.

Resistance does not always hold and a break above resistance signals

that the bulls have won out over the bears. A break above resistance shows a

new willingness to buy and/or a lack of incentive to sell. Resistance breaks

and new highs indicate buyers have increased their expectations and are

willing to buy at even higher prices. In addition, sellers could not be coerced

into selling until prices rose above resistance or above the previous high.

Once resistance is broken, another resistance level will have to be

established at a higher level.

Where Is Resistance Established?

Resistance levels are usually above the current price, but it is not

uncommon for a security to trade at or near resistance. In addition, price

movements can be volatile and rise above resistance briefly. Sometimes it

does not seem logical to consider a resistance level broken if the price closes

1/8 above the established resistance level. For this reason, some traders and

investors establish resistance zones.

So, Here, Identification of key support and resistance levels is an

essential ingredient to successful technical analysis. Even though it is

sometimes difficult to establish exact support and resistance levels, being

aware of their existence and location can greatly enhance analysis and

forecasting abilities. If a security is approaching an important support level,


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it can serve as an alert to be extra vigilant in looking for signs of increased

buying pressure and a potential reversal. If a security is approaching a

resistance level, it can act as an alert to look for signs of increased selling

pressure and potential reversal. If a support or resistance level is broken, it

signals that the relationship between supply and demand has changed. A

resistance breakout signals that demand (bulls) has gained the upper hand

and a support break signals that supply (bears) has won the battle.

Price Oscillator:

The Price Oscillator displays the difference between two moving

averages of a security's price. The difference between the moving averages

can be expressed in either points or percentages.

The Price Oscillator is almost identical to the MACD, except that the

Price Oscillator can use any two user-specified moving averages.

(The MACD always uses 12 and 26-day moving averages, and always

expresses the difference in points.)

Interpretation:

Moving average analysis typically generates buy signals when a short-

term moving average (or the security's price) rises above a longer-term

moving average. Conversely, sell signals are generated when a shorter-term


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moving average (or the security's price) falls below a longer-term moving

average. The Price Oscillator illustrates the cyclical and often profitable

signals generated by these one or two moving average systems.

Price Rate-Of-Change:

The Price Rate-of-Change ("ROC") indicator displays the difference

between the current price and the price x-time periods ago. The difference

can be displayed in either points or as a percentage. The Momentum

indicator displays the same information, but expresses it as a ratio.

Interpretation:

It is a well-recognized phenomenon that security prices surge ahead

and retract in a cyclical wave-like motion. This cyclical action is the result

of the changing expectations as bulls and bears struggle to control prices.

The ROC displays the wave-like motion in an oscillator format bymeasuring the amount that prices have changed over a given time

period. As prices increase, the ROC rises; as prices fall, the ROC falls. The

greater the change in prices, the greater the change in the ROC.

The time period used to calculate the ROC may range from 1-day

(which results in a volatile chart showing the daily price change) to 200-days

(or longer). The most popular time periods are the 12- and 25-day ROC for

short to intermediate-term trading. These time periods were popularized by

Gerald Appel and Fred Hitschler in their book, Stock Market Trading

Systems.


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The 12-day ROC is an excellent short- to intermediate-term

overbought/oversold indicator. The higher the ROC, the more overbought

the security; the lower the ROC, the more likely a rally. However, as with

all overbought/oversold indicators, it is prudent to wait for the market to

begin to correct (i.e., turn up or down) before placing your trade. A market

that appears overbought may remain overbought for some time. In fact,

extremely overbought/oversold readings usually imply a continuationof the

current trend.

The 12-day ROC tends to be very cyclical, oscillating back and forth

in a fairly regular cycle. Often, price changes can be anticipated by studying

the previous cycles of the ROC and relating the previous cycles to the

current market

Relative Strength Index (RSI):

The Relative Strength Index ("RSI") is a popular oscillator. It was

first introduced by Welles Wilder in an article in Commodities (now known

as Futures) Magazine in June, 1978.

The name "Relative Strength Index" is slightly misleading as the

Relative Strength Index does not compare the relative strength of two

securities, but rather the internal strength of a single security. A more

appropriate name might be "Internal Strength Index."

Interpretation:

When Wilder introduced the Relative Strength Index, he

recommended using a 14-day Relative Strength Index. Since then, the 9-day


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and 25-day Relative Strength Indexs have also gained popularity. The fewer

days used to calculate the Relative Strength Index, the more volatile the

indicator.

The Relative Strength Index is a price-following oscillator that ranges

between 0 and 100. A popular method of analyzing the Relative Strength

Index is to look for a divergence in which the security is making a new high,

but the Relative Strength Index is failing to surpass its previous high. This

divergence is an indication of an impending reversal. When the Relative

Strength Index then turns down and falls below its most recent trough, it is

said to have completed a "failure swing." The failure swing is considered a

confirmation of the impending reversal.

The five uses of the Relative Strength Index:

1. Tops and Bottoms. The Relative Strength Index usually tops above

70 and bottoms below 30. It usually forms these tops and bottoms

before the underlying price chart.

2. Chart Formations. The Relative Strength Index often forms chart

patterns such as head and shoulders or triangles that may or may not

be visible on the price chart.

3. Failure Swings(also known as support or resistance penetrations or

breakouts). This is where the Relative Strength Index surpasses a

previous high (peak) or falls below a recent low (trough).

4. Support and Resistance. The Relative Strength Index shows,

sometimes more clearly than price themselves, levels of support and

resistance.


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Divergences. As discussed above, divergences occur when the price makes

a new high (or low) that is not confirmed by a new high (or low) in the

Relative Strength Index. Prices usually correct and move in the direction of

the Relative Strength Index.


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The Bar Chart:

TheBar chart is one of the most popular types of charts used in

technical analysis. As illustrated on the left, the top of the vertical line

indicates the highest price at which a security traded during the day, and the

bottom represents the lowest price. The closing price is displayed on the

right side of the bar and the opening price is shown on the left side of the

bar. A single bar like the one to the left represents one day oftrading.

The chart below is an example of a bar chart for AT&T (T):
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The advantage of using a bar chart over a straight-line graph is that it

shows the high, low, open and close for each particular day.

Candle sticks Charting:

Candlestick charts have been around for hundreds of years. They are

often referred to as "Japanese candles" because the Japanese would use them

to analyze the price of rice contracts.

Similar to a bar chart, candlestick charts also display the open, close,

daily high and daily low. The difference is the use of color to show if the

stockwent up or down over the day.
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The chart below is an example of a candlestick chartfor AT&T (T).

Green bars indicate the stock price rose, red indicates a decline:

Investors seem to have a "love/hate" relationship with candlestick

charts. People either love them and use them frequently or they are

completely turned off by them. There are several patterns to look for with

candlestick charts - here are a few of the popular ones and what they mean.
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.

This is a bullish pattern - the stock opened at (or near) its low and

closed near its high

The opposite of the pattern above, this is a bearish pattern. It

indicates that the stock opened at (or near) its high and dropped

substantially to close near its low.

Known as "the hammer", this is a bullish pattern only if it occursafter the stock price has dropped for several days. A small body along

with a large range identifies a hammer. This pattern indicates that a

reversal in the downtrend is in the works.

Known as a "star. For the most part, stars typically indicate a

reversal and or indecision. There is a possibility that after seeing a

star there will be a reversal or change in the current trend.
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Point and Figure Chart:

The point & figure (P&F) chart is somewhat rare. In fact, most charting

services do not even offer it. This chart plots day-to-day increases and

declines in price: increases are represented by a rising stack of "X"s, while

decreases are represented by a declining stack of "O"s. This type of chart

was traditionally used for intradaycharting (a stockchart for just one day),

mainly because it can be long and tedious to create a P&F chart manually

over a longer period of time.

The idea behind P&F charts is that they help you to filter out less

significant price movements and to focus on the most important trends.

Below is an example of a P&F chart for AT&T (T):
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POPULAR CHARTING PATTERNS:

Technical analysts often use proven successful price patterns from

greatstocksas tools to find new great stocks. Let's look at a few examples

Cup and Handle- This is a pattern on a bar chart that can be as short

as seven weeks and as long as 65 weeks. The cup is in the shape of a

"U". The handle has a slight downward drift. The right-hand side of

the pattern has lowtrading volume.As thestockcomes up to test the

old highs, the stock will incur selling pressure by the people who

bought at or near the old high. This selling pressure will make the

stock price trade sideways with a tendency towards a downtrend for

anywhere from four days to four weeks, then it will take off.

This pattern looks like a pot with a handle. It is one of the easier

patterns to detect; and investors have made a lot of money using it.
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Head and Shoulders- This is a chart formation resembling an "M" in

which a stock's price:

- Rises to a peak and then declines, then

- Rises above the former peak and again declines, and then rises

again but not to the second peak and again declines.

The first and third peaks are shoulders, and the second peak forms the

head. This pattern is considered a verybearishindicator.

Double Bottom - This pattern resembles a "W" and occurs when a

stock price drops to a similar price level twice within a few weeks or

months. You should buy when the price passes the highest point in the

handle. In a perfect double bottom, the second decline should

normally go slightly lower than the first decline to create a shakeout

of jittery investors. The middle point of the "W" should not go into

new high ground. This is a very Bullish indicator.
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The belief is that, after two drops in the stock price, the jittery

investors will be out and the long-term investors will still be holding on.


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CONCLUSION AND RECOMMENDATIONS

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 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 classcustomers so minimum balance required to be maintained is Rs.

10000. While the PRO and ACE Saving Accounts are targeted at high

income Customers, 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.


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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) which makes its product unique.

6. The Bank is also involved in marketing activities which serves as a

medium of advertisement for the Bank. These are as follows:

Extended happy hours at certainpubs in Delhi for the Banks account

holders.

Gift Vouchers on making utility payments, such as cell phones,

electricity and MTNL bills.

Free Gifts like caps, pens/wollets to its customers.

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 the customers 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 free transactions


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10.The Bank also provides DEMAT account and also sells Mutual

Funds, this provides the Bank and Government additional revenue.

11.The Bank has been very successful in enlarging its customer baseduring 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 AXIS Bank, ICICI Bank,

HDFC Bank and STANDRAD CHARTERED.

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:

Increasing the number of ATM machines.

Improving Internet Banking Facility.


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BIBLIOGRAPHY

There was immense need and flow of the information while conducting the

analysis as well as while writing the thesis report, which was gathered

through various sources mentioned below:

Various Magazines and Newspapers such as

Outlook

Financial Times

The Economic Times

The Times of India

The Hindustan Times

Other References

Questionnaires, Journals, Broachers and various other documents

gathered and collected from bank and various other sources suc

Documents

Niyati Gandhi 1621 Final Report