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Corporate StrategyDossier.
“ThinkInvestments. Think Kotak”
Benoy Paul JoseCBS.BFS.!!
"#"$#"%
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Vision
The global Indian fnancial services brand-
&ur 'ustomers (ill en)oy the *ene+ts o, -ealing (ith a glo*al In-ian *ran-that *est un-erstan-s their nee-s an- -elivers 'ustomise- pragmati'solutions a'ross multiple plat,orms. e (ill *e a (orl- 'lass In-ian+nan'ial servi'es group. &ur te'hnology an- *est pra'ti'es (ill *e*en'hmarke- along international lines (hile our un-erstan-ing o, 'ustomers (ill *e uni/uely In-ian. e (ill *e more than a repository o, our'ustomers0 savings. e1 the 2roup1 (ill *e a single (in-o( to every+nan'ial servi'e in a 'ustomer3s universe.
The most preerred employer in fnancial services-
4 'ulture o, empo(erment an- a spirit o, enterprise attra'ts *right min-s(ith an entrepreneurial streak to )oin us an- stay (ith us. orking (ith ahome5gro(n1 pro,essionally5manage- 'ompany1 (hi'h has partnerships(ith international lea-ers1 gives our people a perspe'tive that is universalas (ell as uni/ue.
The most trusted fnancial services company-
e (ill 'reate an ethos o, trust a'ross all our 'onstituents. 4-hering tohigh stan-ar-s o, 'omplian'e an- 'orporate governan'e (ill *e anintegral part o, *uil-ing trust.
Value creation-
6alue 'reation rather than si7e alone (ill *e our *usiness -river.
Three defning qualities o “Bank o the uture”
8Simpli'ity8 9umility
8 Pru-en'e
ignifcance o the group!s logo
“The sym*ol o, the in+nite Ka re:e'ts ourglo*al In-ian personality. The Ka is uni/uelyIn-ian (hile its 'urve ,orms the in+nity sign1
(hi'h is universal. &ne o, the *asi' tenets o, e'onomists is that man3s nee-s areunlimite-. The In+nite Ka sym*olises that (ehave in+nite num*er o, (ays to meet thosenee-s.”
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$otak %ahindra &roup
Kotak ;ahin-ra is one o, In-ia0s lea-ing +nan'ial organi7ations1 o<ering a
(i-e range o, +nan'ial servi'es that en'ompass every sphere o, li,e. From'ommer'ial *anking1 to sto'k *roking1 to mutual ,un-s1 to li,e insuran'e1
to investment *anking1 the group 'aters to the -iverse +nan'ial nee-s o,
in-ivi-uals an- 'orporates.
The Kotak ;ahin-ra 2roup (as *orn in %=>? as Kotak Capital ;anagement
Finan'e @imite-. This 'ompany (as promote- *y A-ay Kotak1 Si-ney 4.
Pinto an- Kotak Company. In-ustrialists 9arish ;ahin-ra an- 4nan-
;ahin-ra took a stake in %=>1 an- that0s (hen the 'ompany 'hange- its
name to Kotak ;ahin-ra Finan'e @imite-.
The group has a net (orth o, over s. E1? 'rore an- has a -istri*ution
net(ork o, *ran'hes1 ,ran'hisees1 representative o'es an- satellite
o'es a'ross 'ities an- to(ns in In-ia an- o'es in Ge( Hork1 @on-on1
San Fran'is'o1 Du*ai1 ;auritius an- Singapore. The 2roup servi'es aroun-
.E million 'ustomer a''ounts.
The 'ourney so ar
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$ey group companies and their businesses
$otak %ahindra Bank-
The Kotak ;ahin-ra 2roup0s :agship 'ompany1 Kotak ;ahin-ra Finan'e
@t- (hi'h (as esta*lishe- in %=>?1 (as 'onverte- into a *ank5 Kotak
;ahin-ra Bank @t- in ;ar'h "! *e'oming the +rst In-ian 'ompany to
'onvert into a Bank. Its *anking operations o<er a 'entral plat,orm ,or
'ustomer relationships a'ross the group0s various *usinesses. The *ank
has presen'e in Commer'ial 6ehi'les1 etail Finan'e1 Corporate Banking1 Treasury an- 9ousing Finan'e.
$otak %ahindra )apital )ompany-
Kotak ;ahin-ra Capital Company @imite- K;CC is In-ia0s premier
Investment Bank. K;CC0s 'ore *usiness areas in'lu-e /uity Issuan'es1
;ergers 4'/uisitions1 Stru'ture- Finan'e an- 4-visory Servi'es.
$otak ecurities-
Kotak Se'urities @t-. is one o, In-ia0s largest *rokerage an- se'urities
-istri*ution houses. &ver the years1 Kotak Se'urities has *een one o, the
lea-ing investment *roking houses 'atering to the nee-s o, *othinstitutional an- non5institutional investor 'ategories (ith presen'e all
over the 'ountry through ,ran'hisees an- 'oor-inators. Kotak Se'urities
@t-. o<ers online an- oLine servi'es *ase- on (ell5resear'he- eMpertise
an- +nan'ial pro-u'ts to non5institutional investors.
$otak %ahindra *rime-
Kotak ;ahin-ra Prime @imite- K;P ,ormerly kno(n as Kotak ;ahin-ra
Primus @imite- has *een ,orme- (ith the o*)e'tive o, +nan'ing the retail
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an- (holesale
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tra-e o, passenger an- multi utility vehi'les in In-ia. K;P o<ers 'ustomers
retail +nan'e ,or *oth ne( as (ell as use- 'ars an- (holesale +nan'e to
-ealers in the automo*ile tra-e.
$otak %ahindra ,sset %anagement )ompany-
Kotak ;ahin-ra 4sset ;anagement Company Kotak ;ahin-ra 4sset
;anagement Company K;4;C1 a su*si-iary o, Kotak ;ahin-ra Bank1 is
the asset manager ,or Kotak ;ahin-ra ;utual Fun- K;;F. K;;F
manages ,un-s in eM'ess o, s "1> 'rore an- o<ers s'hemes 'ateringto investors (ith varying risk5return pro+les. It (as the +rst ,un- house in
the 'ountry to laun'h a -e-i'ate- gilt s'heme investing only in
government se'urities.
$otak %ahindra ld %utual .ie Insurance .imited-
Kotak ;ahin-ra &l- ;utual @i,e Insuran'e @imite- is a )oint venture
*et(een Kotak ;ahin-ra Bank @t-. an- &l- ;utual pl'. Kotak @i,e
Insuran'e helps 'ustomers to take important +nan'ial -e'isions at every
stage in li,e *y o<ering them a (i-e range o, innovative li,e insuran'e
pro-u'ts1 to make them +nan'ially in-epen-ent.
$otak/s International Business-
ith a presen'e outsi-e In-ia sin'e %==$1 the international su*si-iaries o,
Kotak ;ahin-ra Bank @t-. operating through o'es in @on-on1 Ge( Hork1
Du*ai1 San Fran'is'o1 Singapore an- ;auritius spe'iali7e in provi-ing
asset management servi'es to spe'ialist overseas investors seeking to
invest into In-ia. The o<erings are -i<erentiate- In-ia investment
solutions that span all ma)or asset 'lasses in'lu-ing liste- e/uity1 private
e/uity an- real estate. The su*si-iaries also lea- manage an- un-er(rite
international issuan'es o, se'urities. Kotak3s international arm is
positione- ,or managing assets in the In-ian Capital markets.
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&roup tructure
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$otak %ahindra Bank .td 2$%B.3
Kotak ;ahin-ra Bank @t-1 is one o, the prominent su*si-iaries o, Kotak
;ahin-ra group. The a'tivities o, the 'ompany *eing parallel to its
o*)e'tive are very (i-e an- 'over all the 'omponents o, a Bank. The
Basi' area o, &perations is the Banking *usiness1 other pro-u'ts are
meant ,or the regular revenue generation.
K;B@ o<er 'omplete solutions that a--ress a (i-e range o, +nan'ial
re/uirements1 *oth ,or in-ivi-uals as (ell as ,or institutions. From
every-ay *anking to long term investments N their o<ering 'overs it all.
The Bank o<ers 'omprehensive *usiness solutions that in'lu-e Tra-e
Servi'es1 Cash ;anagement Servi'e an- Cre-it ,a'ilities. It has over "$?
*ran'hes sprea- a'ross %$% lo'ations in the 'ountry o<ering *oth
tra-itional *anking pro-u'ts an- investment a-visory servi'es.
4part ,rom tra-itional ,a'ilities like -eposits a''ounts1 savings a''ount1
'urrent a''ount1 term -eposits1 personal loans1 home loans the *ank has
sprea- its (ing in the investment servi'es *y provi-ing its 'ustomer
,a'ilities like Demat1 mutual ,un- an- insuran'e. The *ank has also opte-
,or net *anking1 mo*ile *anking an- phone *anking ,or 'onvenien'e o,
its 'ustomers.
ithin a small span o, years1 the *ank has sprea- it (ings in several
sphere o, +nan'es. Presently1 sprea- in >" 'ities in In-ia1 the *ank 'aters
to the nee-s o, its ?.= million 'ustomers sprea- throughout the lengthan- *rea-th o, 'ountry an- even a*roa-. By the en- o, FH ">5"=1
the Kotak ;ahin-ra Bank ha- a*out "" *ran'hes sprea- all over the
'ountry.
The Bank has a high Capital 4-e/ua'y atio OC43. The C4 as at !%st
;ar'h "= (as %=.> (ith Tier I *eing %.%. The C4 un-er Basel II
(as ".% (ith Tier I *eing %.%!. 4t a 'onsoli-ate- level the C4 is
"".>$ un-er Basel I. There (ere almost no Tier II len-ings. The Get GP4
o, the *ank at the year en- ">5= stoo- at ".".
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$%B. - trategies
5here they 6ant to be7
;ission
1- To *e a (orl- 'lassIn-ian +nan'ialservi'es group.
2- To *e the most pre,erre-employer in the +nan'ialservi'es.
3- To *e the most truste-+nan'ial 'ompany.
4- 6alue *ase-
gro(th. De+ning
Qualities
5- Simpli'ity6- 9umility7- Pru-en'e
5here they are7
Gumerous a(ar-s ,or Kotak
Investment Banking 5 “BestInvestment Bank in In-ia” in">.
Kotak ;ahin-ra Bank rate-“Best orkpla'es in In-ia ">”stu-y *y The 2reat Pla'es toork Institute In-ia.
Kotak Investment Banking Kotak Se'urities )ointly a(ar-e-“Best /uity 9ouse in In-ia” *y4siamoney in ">.
Presen'e in ma)or overseas 'ities.
8o6 they get there7
6alue -rivenmanagementPro,essional servi'e
Te'hnologi'al innovations
- Aser ,rien-ly online
*anking servi'e.- ;o*ile *anking1 S;S
*anking. 4ll un-er one roo,
- i-e range o,*anking#+nan'ial pro-u'ts.
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Industry ,nalysis
$:!s o $otak %ahindra Bank .td7-
'ient promoters. The promoter o, K;B@1 ;r.A-ay Kotak has a goo- 're-i*ilityin the in-ustry. The *oar- o, -ire'tors o, K;B@ are prominentpersonalities ,rom the In-ian +nan'ial segments. They havea (i-e an- in5-epth kno(le-ge o, the in-ustry as (ell asin-ivi-ual segments.
Key allian'es.
mployee ,rien-ly.
Customer ,rien-ly servi'e.
'ient utilisation o, te'hnology.
Strong presen'e in -i<erent gamut3s o, +nan'ial servi'es.
)ompetition-
4lthough K;B@ is a ne( entrant in the In-ian Banking in-ustry1 they have
'ome up(ith a stupen-ous gro(th. 9o(ever1 the *ooming In-ian e'onomy hasattra'te-
investments ,rom a'ross the glo*e1 espe'ially in the +nan'ial segment. This has le-
to many mergers an- J63s in the In-ian *anking segment. The entry o,,oreign *anks
has also in'rease- the 'ompetition.
The main 'ompetitors ,or K;B@ are
1. HS B4GK @t-.
The HS B4GK @t-1 ,oun-e- *y ana Kapoor1 is 'reating ripples in
the private *anking segment. 4lthough they (ere only in the
(holesale an- 'orporate *anking servi'e1 lately they have entere-
the retail *anking as (ell. They have huge eMpansion plans in
pipeline. From the private *anks in In-ia1 HS B4GK is a potentialma)or 'ompetitor ,or K;B@.
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2. &ther In-ian private *anks (hi'h 'oul- *e possi*le 'ompetitors
4Mis Bank1 9DFC Bank an- ICICI Bank.
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3. State Bank o, In-ia
The State Bank o, In-ia has a (i-e presen'e throughout In-ia. They
have the largest retail 'ustomer *ase in In-ia. The volume -riven
*usiness o, SBI is a ma)or threat in the retail segment ,or K;B@.
9o(ever1 the te'hnologi'ally e'ient an- superior K;B@ 'an attra't
ne( generation 'lients more than the SBI.
4. Foreign Banks
Stan-ar- 'hartere- *ank.
)urrent ,ttractiveness-
The Kotak group has its presen'e in almost every aspe't o, the +nan'ial
servi'es in In-ia. 4ll these *usiness are highly 'orrelate-. The group has
its presen'e in 'ommer'ial *anking1 sto'k#'ommo-ities *roking1 mutual
,un-s1 li,e insuran'e1 investment *anking1 +nan'ing servi'es et'...
The mutual support o, these *usinesses (oul- give K;B@ a higher
*argaining po(er than any other Bank in In-ia. The ne( generation
'ustomers are risk takers1 an- they look ,or investment opportunities to
gro( their (ealth.
K;B@ -ire'tly has numerous investment avenues on o<er ,or the 'lients.
This (oul- help the 'ustomers have *etter a''ess to se'uritisation an-
have a goo- sprea- in their investment port,olio.
The e'ient management also makes K;B@ very attra'tive.
The In-ian retail *anking segment is still in a gro(th stage an- the K;B@
has many eMpansion plans in the pipeline.
The regulatory measures ,rom the BI#SBI may *e a hur-le on the roa-.
9o(ever1 the management o, K;B@ has le- the *ank (ith high ethi'al
values an- ,oresight. 4ll these ,a'tors make Kotak ;ahin-ra Bank @t-.
investment attra'tive.
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Industry Value
)hain
Pro+t ;argin
-
-
-
-
Sales
;arketi
ng
Bran-ing
1 Deposit
gathering1 Ge(
4''ount
a'/uisiti
on1 Cross
Sales1
Fee
revenue
generati
on.
evenueStream
s
1-
BankingPro-u
'ts.
2-
Insuran'e#In
vestm e
ntpro-u'ts.
3-
Busi
nessservi'es.
4-
Trea
suryservi'es.
5-
ea
lth
mana
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geme nt. -
Sility
management1
Complian'e.
Pro
-u'tD1
Te'hnol
ogy1SystemsDevel
opment
1- C;1
&perational e, ,
i'ien'ies1 market eMpansion1 m
erging ;arkets1
Competi
tive p
ositioning.
2- K ;B
@3s I
T support h
as *een a(ar-e- , or their innov
ative s
e'
resan-
user, rien-ly so
, t(are.
9umanesour'e;anageme
nte'ruiting1
Training1Per,orman'e;anagement1In'entive
programs.
Pro'urementStrategi'sour'ing16en-or
Sele'tion.
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:uture Industry outlook
The In-ian *anking in-ustry has a huge gro(th potential. There are many
players 'oming ,or a share o, the pie. This has prompte- the BI an- other
regulatory *o-ies to 'ome up (ith more stringent regulations. Transparen'y (oul- *e emphasise- more. The *anks have to get
themselves rea-y ,or these 'hanges. The re'ent moves *y the BI like
implementing a Base ate in pla'e o, BP@1 making KHC norms stri'ter
et'... have long term impli'ations in the operations o, the *anks.
The ,ollo(ing +gure sho(s the In-ustry @i,e Cy'le o, Banking In-ustry in
In-ia1 as (ell as that o, K;B@.
Industry .ie )ycle
I
industry
;aturity
$%B. 2ro(th
Development
D
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Time
The +gure sho(s that
K;B@ lies in the
-evelopment se'tor o,
the in-ustry an- the
in-ustry as su'h
'omes in *et(een
gro(th an-
-evelopment.
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rgani>ational trengths
trengths-
'ient management.
4''ess to -i<erent +nan'ial pro-u'ts#servi'es (ithin the Kotak
group. 2oo- employee relations.
2oo- 'apital a-e/ua'y. "!
@o( GP4 o, "." 'ompare- to in-ustry private *anks average
o, !.?%. Presen'e in ,oreign soil.
pportunities-
Being part o, the In-ia3s gro(th story
Atilise the emerging opportunity o, getting the (allet share o, the
*urgeoning mi--le 'lass
Atilise te'hnology to provi-e solutions to
'ustomers In'rease -istri*ution strength
Threats-
6olatile
environment Fis'al
-e+'it
6olatile interest rate
movements Competition
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)orporate &overnance-
The Bank *elieves in a-opting an- a-hering to the *est stan-ar-s o,
'orporate governan'e to all the stakehol-ers. The Bank3s 'orporategovernan'e is1 there,ore *ase- on the ,ollo(ing prin'iples
1O 4ppropriate 'omposition1 si7e o, the Boar- an- 'ommitment
to a-e/uately -is'harge its responsi*ilities an- -uties.
2O Transparen'y an- in-epen-en'e in the ,un'tions o, the Boar-.
3O In-epen-ent veri+'ation an- assure- integrity o, +nan'ialreporting.
4O 4-e/uate risk management an- Internal Control.
5O Prote'tion o, sharehol-ers3 rights an- priority ,or investorrelations.
6O Timely an- a''urate -is'losure on all matters 'on'erning
operations an- per,orman'e o, the Bank.
The Bank3s philosophy on 'orporate governan'e enshrines the goal o,
a'hieving the highest levels o, transparen'y1 a''ounta*ility an- e/uity in
all spheres o, its operations an- in all its -ealing (ith the sharehol-ers1
employees1 the government an- other parties. The Bank un-erstan-s an-
respe'ts its +-u'iary role an- responsi*ility to sharehol-ers an- strives
har- to meet their eMpe'tations.
The Bank (as ranke- among the top +ve in Corporate 2overnan'e
Pra'ti'es in 4sia#Pa'i+' ,or the year "=. The Bank has a'hieve- this
ranking ,or the se'on- year in a ro(. For the 'urrent year1 the Bank has
*een ranke- as Go % in 4sia#Pa'i+' an- Go " in the +nan'ial servi'es
in-ustry a'ross all the regions 'overe-.
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)orporate ocial ?esponsibility-
Conservation
4 *ank 'an 'onserve more than )ust +nan'ial resour'es. The annual
report is printe- on % (oo-5,ree environmental5,rien-ly paper. The
paper has *een manu,a'ture- as per the Siam Pulp an- Paper Poli'y
,or environmental 'onservation an- sa,ety1 an- has *een a''re-ite-
*y the nvironmental ;anagement System 5 IS& %$%.
Through an internal initiative 'alle- OKill Bill31 the group is pursuing a
t(o5pronge- o*)e'tive o, 'onserving natural resour'es (ater1 paper1ele'tri'ity1 ,uel (hile simultaneously 'utting 'osts through operational
synergies .
In or-er to em*e- this thought pro'ess in its 'ulture1 there is regular
internal 'ommuni'ation on ho( to re-u'e glo*al (arming1 use 'ar
pools1 maMimi7e ,uel e'ien'y1 'onserve (ater an- so on.
trategies ollo6ed
The K;B@ ,ollo(s many innovative strategies so as to *ring in synergies
*et(een their *usinesses as (ell as (ith their 'ustomers. Some strategi'
moves *y the *ank -uring the year ">5= are -is'usse- *elo(.
1. ),8 @AT-
This is an allian'e *et(een Citi*ank1 In-ustrial Development Bank o,
In-ia1 Kotak ;ahin-ra Bank an- ATI Bank. It is the 'ountry0s +rst
in-epen-ent share- 4T; net(ork. IDBI Bank re'eive- permission
,rom the eserve Bank BI to serve as the net(ork0s settlement
*ank. Cash net (ill give a''ess to more than %1! 4T;s ,or more
than million -e*it 'ar-hol-ers o, the
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mem*er *anks. The allian'e (oul- 'onstitute a*out a thir- o, thetotal 'ar-
*ase an- %? per'ent o, the 4T; *ase in the 'ountry.
2. unday Banking-
Sun-ay Banking (as laun'he- in sele't *ran'hes (hi'h 'ater only
to resi-ential lo'alities.
3. )ustomer Angagement *rogram 2)A*3-
4 ,ormal Customer ngagement Program (as starte- (herein the
*ank has a systemati' 'alen-ar ,or 'onta'ting 'ustomers an-
perio-i'ally revie(ing their *anking nee-s.
4. %icro :inance-
Colla*orating (ith ;i'ro Finan'e Institute0s1 G2&0s an- the govt. The
entry via ;FI3s1 G2& an- the government helps the Bank to get
-ire'tly engage- in this *usiness (ithout -ire't e<orts. The huge
mi'ro+nan'e in-ustry in In-ia (ill *oost the *anks earningsR
ho(ever there is a risk o, GP43s to in'rease.
5. .aunch o credit cards
4s a *ank1 this (as the missing pie'e in its pro-u't suite. K;B@
laun'he- 're-it 'ar-s in 4pril "> (ith an initial target o, !?1
'ar-s. Due to the -o(n turn an- the re'essionary e<e'ts there (as
a threat o, people not paying an- so they slo(e- -o(n -ramati'ally
to en- the year (ith )ust over %1 'ar-s.
The Bank took a 'all to -is'ontinue outsour'e- a'/uisition an- only
sour'e 'ustomers through internal sour'es or re,errals. These
measures helpe- in limiting the losses1 the 're-it 'ar-s are less than
% o, its *ook.
6. Branch eCpansion-
The *ank in'rease- the num*er o, *ran'hes to "%E to(ar-s the en-
o, FH >5=. 4lthough they (ent ,or stea-y eMpansion1 these (ere
not restri'te- only to ur*an areas. They set up *ran'hes in semi5
ur*an areas too. This (as a strategi' move1 *e'ause many o, the
semi5ur*an regions in In-ia are emerging ,ast an- it (oul- also have
a''ess to near*y rural areas too.
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7. Branch banking-
Their initial target (as to tou'h " plus *ran'hes *y the en- o, the
year. The eventual num*er (as "%E. The *ank initially slo(e- -o(n
sin'e rentals (ere ,alling really ,ast an- it (ante- to get *etter rates'onsi-ering most *ran'h leases are typi'ally signe- ,or nine5year
perio-s. The slo(-o(n 'all then 'ontinue- -ue to the e'onomi'
'limate.
hile the *ank 'ontinues to gro( their *ran'h net(ork1 it is (orth
noting that % o, its 'ustomers a'tively use the online *anking
'hannel. In a young 'ountry1 this num*er (ill only in'rease an- the
*ank is (orking to make this 'hannel simpler an- more se'ure to
use.
8. )ut on lending-
Sin'e a lot o, the pro*lems in the len-ing *usiness stemme- ,rom
the retail en-1 the *ank pla'e- a greater ,o'us on len-ing to
'orporate 'lients. It *rought -o(n the retail lan-ings ,rom >= to
>. This helpe- them -e'rease the GP43s ,rom the retail segment.
the eM'ess ,un- (as -iverte- to 'orporate len-ing.
9. %A lending!s-
4mong small an- me-ium 'orporates1 the *ank (orke- (ith
'ompanies that have a tra'k re'or- ,or raising 'apital. 4n- among
larger 'orporates1 it (orke- (ith large 'ompanies most o, (hom
ha- raise- money at attra'tive rates ,rom overseas markets an-
PSAs.
In this segment1 even though the yiel- is lo(er1 the 'ustomer pro+le
(as in keeping (ith the *ank3s emphasis on prote'ting the *alan'e
sheet. Besi-es1 (hat it may lose in yiel- is ma-e up through gro(ing
the 'orporate *anking relationship as 'lients 'ount on us ,or
transa'tion :o(s1 @Cs1 guarantees1 pay or-ers1 DDs1 transa'tion
,ees an- so on. In many 'ases1 it goes on to sign up salary a''ounts1
(hi'h helps *uil- -epositors.
10. Aarly eCit rom :D derivatives-
In &'to*er "E1 K;B@ -e'i-e- to stop -erivatives. 4 num*er o,
other *anks reali7e- there (as a pro*lem only aroun- late January1
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early Fe*ruary. By taking an early 'all1 K;B@ (ere a*le to limit its
losses. 4s a proa'tive risk
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management measure the Bank3s parti'ipation in the Se'uriti7ation
markets (ere also 'ons'iously mo-erate-. These measures helpe-
the *ank 'onsi-era*ly in keeping it aloo, ,rom the losses -ue to the
-o(nturn.
)onclusion
Kotak ;ahin-ra Bank is positioning themselves as Othe *ank o, the
,uture3. To support this vision1 the management has ensure- they
serve the 'ustomer o, the ,uture1 ie. the young In-ians. They alsostrategi'ally 'ome up (ith pro-u'ts an- servi'es (hi'h this ma)ority
share o, the 'ustomers (oul- *e 'om,orta*le (ith. The heavy
-epen-en'y on te'hnology an- internet is a su*stantiates this.
The only voi- in *et(een their servi'e (as the rural population an-
the O*ottom o, the pyrami-3 population. To 'ater this 'ategory o, the
population1 they are strategi'ally gone ,or partnerships (ith ;i'ro
Finan'e Institutions1 G2&3s an- even the government. This (ay
K;B@ (ill have their presen'e in this segment (ith lesser risk an-
'ost.
ven though K;B@ has a 'omparatively lo(er GP4 rate "." than
the in-ustry itsel,1 those levels are also high. They nee- to a--ress
this issue at the earliest. e-u'ing len-ing3s to the retail 'ustomers
is a short term strategy. For a longer term1 they shoul- 'ome up (ith
pro-u'ts (hi'h (oul- 'ater *oth the re/uirement o, the 'ustomer as
(ell as re-u'e the risk o, the len-ing too.
Thus1 on a (hole1 the O*ank o, the ,uture3 is playing their 'ar-s
smartly. They survive- the -o(n turn (ithout mu'h (oun-s. This
proves the a*ility o, the promoter an- the management to gui-e the
*ank to a *etter stronger ,uture.
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?eerencesE
1• http##(((.thehin-u*usinessline.'om#"=#%%#%$#stories#"=%%%$?==$.htm
2• http##(((.kotak.'om#KotakU2roupSite#annualUreportsU:ash#,y>
5=#main#-o(nloa-s#kotak5*ank#eport"on"'orporate"governan'e.p-,
3• http##(((.kotak.'om#KotakU2roupSite#annualUreportsU:ash#,y>5=#main#vision.html
4• http##(((.kotak.'om#KotakU2roupSite#a*outus#ourU'orp.htm
5• http##(((.ilovein-ia.'om#+nan'e#*ank#private5*anks#kotak5mahin-ra5*ank.html
6• http##(((.r*i.org.in
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