Kotak Report

A
PROJECT REPORT ON
MARKET STUDY AND CUSTOMER MAPPING
FOR BANKING PRODUCTS
PREPARED BY
Hemali Suratia
Bharti Thakkar
Manthan Sarvaiya
Truptesh Shah
Umesh Makhlepara
Sumit Patel
Kaushik Gondaliya
Yogesh Sindha
Nilesh Khetiya
(NIS Academy) SUBMITTED TO
Pramod Sir
(Branch Manager)
V.V.NAGAR
NIS ACADEMY, MBA 2010 Page 1

INDEX
Sir no. Particulars Page no.

1. Preface 03
2. Acknowledgement 04
3. Objective 05
4. Executive summary 06
5. Company profile 08
6. Introduction of banking sector in India 11
7. Current scenario 15
8. About Kotak Mahindra bank 19
9. History 20
10. SWOT Analysis of Kotak bank 28
11. NRI’S 3O
12. NRI Help center 52
13. Analysis 62
14. Conclusion 64

PREFACE
The industrial scenario of economy is highly competitive and constantly

changing. To serve this highly competitive scenario practical studies are much
more important with theoretical studies. In India the significance of MBA
course is increasing drastically. Amongst all the PG courses MBA is most
favored. As a partial fulfillment of third semester the students have to take a
summer training of 6 to 7 weeks at any company and prepare a project report on
the basis of that practical experience.
Indian economy is growing at a considerable rate. The growth of GDP in India

is 8% per annum. The major sector contributing to the growth of GDP is service
sector and it is approximately 63% to GDP. Banking is one of the main pillars
of service sector. So I have decided to take exposure of banking sector by taking
practical training at KOTAK MAHINDRA BANK which is one of the reputed
private banks.
The aim of KOTAK MAHINDRA BANK is customization & people cantered

banking. Customized banking system can be achieved by provided what
customer actually wants. So we want to check weather KOTAK MAHINDRA
BANK is successful or not. As a part of this study I have decided to prepare a
project report on “MARKET STUDY & CUSTOMER MAPPING FOR
BANKING PRODUCTS” PROVIDED BY KOTAK MAHINDRA BANK.
The study of this topic is helpful to me in analyzing customer satisfaction &

loyalty to the services which they are using at the KOTAK MAHINDRA
BANK. This study will also be helpful to us in analyzing the information about
what change customer want from the existing services. This report also gives
me the overall satisfaction level of customer from the KOTAK MAHINDRA
BANK & how the customers are loyal to the bank. This report also includes
graphical representation wherever it feels necessary. Finally, it is indeed
excellent opportunity for us to present this report and a matter of esteem honors
itself. After successful completion of training it is golden experience for me of
banking sector. And I also know how the different departments are working.

ACKNOWLEDGEMENT
First of all I am thankful to KOTAK MAHINDRA BANK and Branch Manager

Mr. Pramod Chauhan for giving me permission to take the summer training. I
would also like to thank the staff members of the bank for providing us
information about the different departments of the bank. I would like to thank
our Centre Head Mr. Manish Amin of NIS ACADEMY for his guidance and
kind support as well as our project guide Mrs. Nisha Kurup for their valuable
guidance and experience.
Finally I am glad to thank our all faculties who have provided me substantial
guidance & support in preparation of this project. This successful completion of
this project could not have been possible without their co-operation and support. I
would also like give some share of thanks to my friends for their support.

OBJETIVE
Every project have specific objective. Without deciding it nobody can complete
their work success faulty. So, before beginning any work we must to decide
own goal and objective to reach the principal stage.
Bank is having a set of customers who are having banking relationship with
customers but are not actively transacting because of unknown reason. To
objective underlying then project is to activate the above mentioned set of
inactive customers through direct contact viz, telephonic calls, personal visit
and emails. This will also help us in getting the feedback from the customers
who in term may help bank to improve upon its product and services.

EXECUTIVE SUMMARY
Executive summary is a term used in business for a short document that

summarizes a longer report,
It will usually contain a brief statement of the problem or proposal covered in

the major document(s), background information, concise analysis and main
conclusions. It is intended as an aid to decision making by business managers.
An executive summary differs from an abstract in that an abstract will usually

be shorter and is intended to provide a neutral overview or orientation rather
than being a condensed version of the full document. Abstracts are extensively
used in academic research where the concept of the executive summary would
be meaningless.
This project report is based on the NRI Banking Services provided by the Kotak
Mahindra bank. Three major criteria’s are undertaken for finding the customer
opinion i.e. people, process and physical evidence. As there was a limitation of
time and the project is too broad we have prepared the project report in group of
two. As Kotak Mahindra bank is a service firm we have selected the above
mentioned criteria’s. I have selected the banking sector because in India
banking is one of the most growing sectors and there are many future
opportunities are there. The banking sector of India is one of the least affected
by the slowdown all over the world because it strong framework and regulation.
Our project is mainly based on the research but for some aspects secondary data
is also being included from the websites and the books. As it is research project
we have undergone one survey of around 1200 respondents within ANAND
district to find the customer opinion of NRI services provided by the Kotak
Mahindra bank. We have selected the V V Nagar branch of the Kotak Mahindra

bank as our territory of research. A well designed questionnaire was formed of 7
questions for collecting the data. The exploratory research design is undertaken
and the data is being collected by field work and telephone. Without
replacement and non-random sampling method is being used. Our target
population was customers coming at bank and the corporate salary accounts.
We have also included all the information regarding the 7 Ps of the Kotak
Mahindra bank which will include all the information of Kotak Mahindra bank
related products, pricing, promotional schemes, people, various processes, and
the physical evidence facilities. All these data is being collected from the
secondary sources.

COMPANY PROFILE
The Kotak Mahindra group is a financial organization established in 1985 in

India. It was previously known as the Kotak Mahindra Finance Limited, a non-
banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the
group's flagship company was given the license to carry on banking business by
the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first
company in the Indian banking history to convert to a bank.
The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive
Vice Chairman & Managing Director. Shankar Acharya is the chairman of board
of Directors in the company. The Bank has its registered office at Nariman
Bhavan, Nariman Point, Mumbai.

Mr. K.M. Gherda Chairman
Mr. Uday Kotak Executive Vice Chairman & Managing Director
Mr. Anand Mahindra
Mr. Cyril Shroff
Mr. Pradeep Kotak
Dr. Shankar Acharya
Mr. Shivaji Dam
Mr. Ajay Sondhi
Mr. C. Jayaram Executive Director
Mr. Dipak Gupta Executive Director
Ms. Bina Chandarana Secretary & Senior Vice President

…….ORGANISATION CHART…….

INTRODUCTION OF BANKING SECTOR IN INDIA
The Indian Banking industry, which is governed by the Banking Regulation Act
of India, 1949 can be broadly classified into two major categories, non-
scheduled banks and scheduled banks. Scheduled banks comprise commercial
banks and the co-operative banks. In terms of ownership, commercial banks can
be further grouped into nationalized banks, the State Bank of India and its group
banks, regional rural banks and private sector banks (the old/ new domestic and
foreign). These banks have over 67,000 branches spread across the country.
The first phase of financial reforms resulted in the nationalization of 14 major

banks in 1969 and resulted in a shift from Class banking to Mass banking. This
in turn resulted in a significant growth in the geographical coverage of banks.
Every bank had to earmark a minimum percentage of their loan portfolio to
sectors identified as “priority sectors”. The manufacturing sector also grew
during the 1970s in protected environs and the banking sector was a critical
source. The next wave of reforms saw the nationalization of 6 more commercial
banks in 1980. Since then the number of scheduled commercial banks increased
four-fold and the number of bank branches increased eight-fold.
After the second phase of financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB) s found it extremely
difficult to compete with the new private sector banks and the foreign banks.
The new private sector banks first made their appearance after the guidelines
permitting them were issued in January 1993. Eight new private sector banks
are presently in operation. These banks due to their late start have access to
state-of-the-art technology, which in turn helps them to save on manpower costs
and provide better services.
During the year 2000, the State Bank of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in credit.
The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5
percent of credit during the same period. The share of foreign banks (numbering
42), regional rural banks and other scheduled commercial banks accounted for
5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41

percent, 3.14 percent And 12.85 percent respectively in credit during the year
2000.
Banking in India has its origin as early as the vedic period. It is believed that the
transistion from money lending to banking must have occurred even before
Manu, the great Hindu Jurist, who has devoted a section of his work to deposits
and advances and laid down rules relating to rates of interest. During the Mogul
period, the indegenous bankers played a very important role in lending money
and financing foreign trade and commerce. During the days of the East India
Company, it was the turn of the agency houses to carry on the banking business.
The General Bank of India was the first Joint Stock Bank to be established in
the year 1786. The others which followed were the Bank of Hindustan and the
Bengal Bank. The Bank of Hindustan is reported to have continued till 1906
while the other two failed in the meantime.
In the first half of the 19th century the East India Company established three
banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank
of Madras in 1843. These three banks also known as Presidency Banks, were
independent units and functioned well. These three banks were amalgamated in
1920 and a new bank, the Imperial Bank of India was established on 27th
January 1921. With the passing of the State Bank of India Act in 1955 the
undertaking of the Imperial Bank of India was taken over by the newly
constituted State Bank of India. The Reserve Bank which is the Central Bank
was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of
the Swadeshi Movement, a number of banks with Indian management were
established in the country namely, Punjab National Bank Ltd, Bank of India
Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central
Bank of India Ltd. On July 19, 1969, 14 major banks of the country were
nationalised and in 15th April 1980 six more commercial private sector banks
were also taken over by the government. Today the commercial banking system
in India may be distinguished into following sectors:

.Public Sector Banks..
State Bank of India and its associate banks called the State
Bank group
20 nationalised banks
Regional Rural Banks mainly sponsored by Public Sector
Banks
..Private Sector Bank..
 Old generation private banks

 New generation private banks
 Foreign banks in India
 Scheduled Co-operative Banks
 Non-scheduled Banks
..Co-operative Banks..
The co-operative banking sector has been developed in the

country to the suppliment the village money lender. The co-
operatiev banking sector in India is divided into 4 components
 State Co-operative Banks

 Central Co-operative Banks
 Primary Agriculture Credit Societies
 Land Development Banks
 Urban Co-operative Banks
 Primary Agricultural Development Banks
 Primary Land Development Banks
 State Land Development Banks

..Development Banks..
 Industrial Finance Corporation of India (IFCI)

 Industrial Development Bank of India (IDBI)
 Industrial Credit and Investment Corporation of
India (ICICI)
 Industrial Investment Bank of India (IIBI)
 Small Industries Development Bank of India (SIDBI)
 SCICI Ltd.
 National Bank for Agriculture and Rural Development (NABARD)
 Export Import Bank of India
 National Housing Bank

CURRENT SCENARIO
The industry is currently in a transition phase. On the one hand, the PSBs,
which are the mainstay of the Indian Banking system, are in the process of
shedding their flab in terms of excessive manpower, excessive non-Performing
Assets (Npas) and excessive governmental equity, while on the other hand the
private sector banks are consolidating themselves through mergers and
acquisitions.
PSBs, which currently account for more than 78 percent of total banking
industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in
2000), falling revenues from traditional sources, lack of modern technology and
a massive workforce while the new private sector banks are forging ahead and
rewriting the traditional banking business model by way of their sheer
innovation and service. The PSBs are of course currently working out
challenging strategies even as 20 percent of their massive employee strength has
dwindled in the wake of the successful Voluntary Retirement Schemes (VRS)
schemes.
Private sector Banks have pioneered internet banking, phone banking, anywhere
banking, and mobile banking, debit cards, Automatic Teller Machines (ATMs)
and combined various other services and integrated them into the mainstream
banking arena, while the PSBs are still grappling with disgruntled employees in
the aftermath of successful VRS schemes. Also, following India’s commitment
to the W To agreement in respect of the services sector, foreign banks, including
both new and the existing ones, have been permitted to open up to 12 branches a
year with effect from 1998-99 as against the earlier stipulation of 8 branches.
Talks of government diluting their equity from 51 percent to 33 percent in
November 2000 have also opened up a new opportunity for the takeover of even
the PSBs. The FDI rules being more rationalized in Q1FY02 may also pave the
way for foreign banks taking the M&A route to acquire willing Indian partners.
Meanwhile the economic and corporate sector slowdown has led to an
increasing number of banks focusing on the retail segment. Many of them are
also entering the new vistas of Insurance. Banks with their phenomenal reach
and a regular interface with the retail investor are the best placed to enter into

the insurance sector. Banks in India have been allowed to provide fee-based
insurance services without risk participation invest in an insurance company for
providing infrastructure and services support and set up of a separate joint-
venture insurance company with risk participation.

THERE ARE SEVERAL GOOD REASONS FOR
INVESTING IN INDIA
One of the largest economies in the world.

Strategic location - access to the vast domestic and South Asian market.
A large and rapidly growing consumer market up to 300 million people;
constitute the market for branded consumer goods - estimated to be growing at
8% per annum. Demand for several consumer products is growing at over 12%
per annum.
Foreign investment is welcome; approval is required but is automatic in sixty
categories of Industries.
Skilled man-power and professional managers are available at competitive cost.
One of the largest manufacturing sectors in the world, spanning almost all areas
of manufacturing activities.
One of the largest pools of scientists, engineers, technicians and managers in
the world.
Rich base of mineral and agricultural resources.
Long history of market economy infrastructure
Sophisticated financial sector.
Vibrant capital market with over 9,000 listed companies and market
capitalisation of US$ 154 billion (March,1996)
Well-developed R&D infrastructure and technical and marketing services.
Policy environment that provides freedom of entry, investment, location,
choice of technology, production, import and export.
Well balanced package of fiscal incentives.
A sophisticated legal and accounting system.
English is widely spoken and understood.
Rupee is convertible on Current Account at market determined rate.
Free and full repatriation of capital, technical fee, royalty and dividends.
Foreign brand names are freely used. No income tax on profits derived from
export of goods.
Complete exemption from Customs Duty on industrial inputs and Corporate
Tax Holiday for five years for 100 per cent Export Oriented units and units in
Export Processing Zones.

Corporate Tax applicable to the foreign companies of a country with which
agreement for avoidance of Double Taxation exists, can be one which is lower
between the rates prevailing in any one of the two countries.

…KOTAK MAHINDRA BANK…
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.1550 crore and employs over 3,000 employees
in its various businesses. With a presence in 59 cities in India and offices in New
York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.
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).

……………..HISTORY……………
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
Kotak Mahindra is among the leading financial organization of India, with a range
of financial services that caters to all customers' day to day requirements. Their
products spans from commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking – diverse needs of individuals and corporates are
catered to.
The Kotak group has a net worth of more than Rs. 6,799 crore with the branches,
franchisees, representative offices and satellite offices spread across cities and towns
in India. They also have global offices in New York, London, San Francisco, Dubai,
Mauritius and Singapore. The Kotak Group offers their services to approximately
6.4 million customers.
The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital
Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto
and Kotak & Company. A stake in the group was taken in by industrialists Harish
Mahindra and Anand Mahindra and this is the time when the company changed its
name to Kotak Mahindra Finance Limited.

..HIGHLIGHTS OF KOTAK MAHINDRA BANK..
Market Share Of Key Players In The Indian Aviation Sector
Kotak Mahindra Finance Limited started off with Bill Discounting

1986
Kotak Mahindra Finance Limited makes its foray into the Lease and
1987 Hire Purchase market
The Auto Finance division starts

1990
The Investment Banking Division starts off. They take over FICOM,
1991
one of India's largest financial retail marketing networks
Penetrates into the Funds Syndication sector
1992
The brokerage and distribution businesses of the Group gets

incorporated into a separate company - Kotak Securities, whereas the
1995 investment banking arm is incorporated into a separate company -
Kotak Mahindra Capital Company
The Auto Finance Business of the Group is hived off into a separate
company - Kotak Mahindra Prime Limited. Kotak Mahindra takes up
a major stake in Ford Credit Kotak Mahindra Limited to finance Ford
1996
vehicles. They launch Matrix Information Services Limited, marking
the group's entry in information distribution
Kotak Mahindra Asset Management Company is incepted and they

1998
enter into the mutual fund market.

Kotak Mahindra makes a tie with Old Mutual plc. For their Life
Insurance business. Kotak Securities launches the site (now
2000
www.kotaksecurities.com). Kotak Mahindra Venture Capital Fund is
formed and the private equity business of the group commences.
Matrix is sold to Friday Corporation and the Insurance Services is

2001
launched.
2003 Kotak Mahindra Finance Ltd. gets converted into a commercial bank.
2004
A private equity fund (India Growth Fund) is launched.
2005 Kotak Group launches a real estate fund
The Group buys 25% stake held by Goldman Sachs in Kotak

2006
Mahindra Capital Company and Kotak Securities
THE JOURNEY SO FAR…

KEY GROUP COMPANY AND THEIR BUSINESS.
The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd
which was established in 1985, was converted into a bank – Kotak Mahindra Bank
Ltd in March 2003 becoming the first Indian company to convert into a Bank. It’s
banking operations offers a central platform for customer relationships across the
group’s various businesses. The bank has a presence in the Commercial Vehicles,
Retail Finance, Corporate Banking and Treasury and has recently entered the
Housing Finance segment.
Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment

Bank and a Primary Dealer (PD) approved by the RBI, is a strategic joint venture
between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP.
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., a strategic joint venture between Kotak Mahindra Bank
Limited and the Goldman Sachs Group, LLP. 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 retails investor categories with presence all over the country through franchisees
and co-coordinators. Kotak Street - the retail arm of Kotak Securities Ltd., offers
online (through www.kotakstreet.com) and offline services well-researched
expertise and financial products to the retail investors.

….KOTAK CAR FINANCE….
Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra
Bank Ltd and Ford Credit International Inc., (USA) formed to finance all non-Ford
passenger vehicles. KMP is one of the country’s leading players in car finance and
is focused to financing and supporting automotive and automotive related
manufacturers, dealers and retail customers.
….KOTAK MUTUAL FUND....
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 4000 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.

THE JOURNEY OF KOTAK MAHINDRA BANK
2003
-Madison Communications has won the Rs.30cr Kotak Mahindra's

media
AOR Account.
-The proposal of changing the name from 'Kotak Mahindra Finance Ltd'
To 'Kotak Mahindra Bank Ltd' and the proposal to change the
Authorized capital from 100, 00, and 00,000 divided into 10, 00, and
00,000
Equity shares of Rs.10 each has been approved by the company
shareholders.
-RBI has granted license to Kotak Mahindra Finance Ltd to embark on

Its Banking business.
-O & M has got the creative account of Kotak Mahindra Bank, and has
said to be working professionally.
-Kotak Mahindra Bank has received a lot of interest from portfolio

Investors, private equity investors and potential strategic investors.
-Kotak Mahindra Bank has entered into an ATM sharing agreement

with UTI Bank, which would allow KMB's customer free access to
around 800 ATM's.
-Kotak Mahindra Bank has started its operations in New Delhi by

Inaugurating a Branch Connaught place office.
-Dr.Shankar Acharya has been appointed as the Additional Director to

the board of the bank.

-The Board of Kotak Mahindra Bank Ltd accepts the resignation of
Mr.S.A.A Pinto and Mr.M.R Punja as the Directors of the Bank.
-Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak

Mahindra Capital Company has constituted itself from a private
company to a public limited company and has changed
Its name to 'Global Investment Opportunities Fund Ltd'.
-Kotak Mahindra bank has unveiled several home finance products

options which includes:
Home loan, Home equity Loan, Home loan transfer and Home
improvement loans.
--Kotak Mahindra Bank launches online remittance services called,

FUNDS to HOME
For Non-resident Indians.
-In response to the repo rate cut by the RBI, the Kotak Mahindra Bank
has reduced its lending rates in home loans.
-Kotak Mahindra Bank Limited has informed that the equity shares of
the Bank have been delisted from the Delhi Stock Exchange Association
Ltd w.e.f December 10, 2003.
2004
-Kotak Mahindra Bank Limited has informed that the Bank's equity
Shares will be delisted from The Stock Exchange, Ahmedabad with
Effect from January 20, 2004.
-Kotak Mahindra Bank sets up branch in Surat.
-Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an

Open-ended equity growth scheme

-Kotak Mahindra Bank inks pact with Reuters
2005
-Kotak Mahindra Bank purchases stressed assets worth Rs 1,000 cr
-Kotak Bank joins hands with IndianNGOs.com
-Kotak Mahindra Bank invests Rs 25 cr in BFW
2006
-Kotak Mahindra joins hand HDFC Bank to share ATMs.
-Kotak Mahindra to buy out Goldman Sachs' stake in JVs
-Kotak Mahindra Bank sets up branch in Valsad
-Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio
2007
-Kotak Mahindra Bank Launches Home Banking, Improves Banking

Experience
-Kotak Mahindra Bank Launches Salary 2 Wealth
-Kotak Mahindra Bank Launches Kotak Gold Debit Card
-Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of

IT Returns
2008
Kotak Mahindra Bank launched credit cards for its customers.

2009
-Kotak entered into tie up with Russia's top investment bank
-Kotak Mahindra Bank Wins IT Team of the Year for 3rd

Consecutive Time at the Banking Technology Awards 2008
..SWOT ANALYSIS OF KOTAK MAHINDRA BANK..
1. STRENGTHS:
Professional management
Strong technology,
Well capitalized,
Comprehensive cash management system
Total Deposits Rs15, 645 crore
Net Advances Rs16, 625 crore
2. WEAKNESS:
Latecomers
Less Promotional Activities
3. OPPORTUNITIES:
Have best services & product compare to other bank
4. THREATS:
Capital Market slow-down
Other better Saving Facility by other Competitor

Rising Rates
investment option available (like Insurance, Mutual fund, Real-estate,

Gold)
Government Rules And Regulation

……………..NRIs………………..
NRIs
An Indian Citizen who stays abroad for employment/carrying on business or
vocation outside India or stays abroad under circumstances indicating an
intention for an uncertain duration of stay abroad is a non-resident. Non –
Resident foreign citizens of Indian Origin are treated on par with non-resident
Indian Citizens (NRIs) for the purpose of certain facilities.
Main categories of NRIs

The following are the main three categories of NRIs:-
(i) Indian citizens who stay abroad for employment or for carrying on a business
or Vocation or any other purpose in circumstances indicating an indefinite
period of stay abroad.
(ii) Indian citizens working abroad on assignment with foreign government

agencies like United Nations Organization (UNO), including its affiliates,
International Monetary Fund (IMF), World Bank etc.
(iii) Officials of Central and State Government and Public Sector undertaking
deputed abroad on temporary assignments or posted to their offices, including
Indian diplomat missions, abroad.

For Non Resident Indians and Persons of Indian Origin we have a specially
designed product range for banking and investments. Choose a product that best
suits your investment objectives, be it moderate return, quick liquidity or capital
preservation. We offer
Diversified investment options

Power packed NRI Accounts and Deposits
Remittance and Foreign Exchange Services
Insurance
Portfolio Investment schemes under FEM
BANKING:
NRO Rupee Savings
Bank and easily access your Indian income and earnings with an NRO Savings
account. You can also easily credit your account from anywhere in the world.
What makes the NRO Rupee Savings account different?
Deposits from any source in India and abroad are accepted subject to
repatriation restrictions for foreign currency
Pension, dividend, rent, and other current income can be repatriated on
completion of documentation
Transfer amounts up to a limit of USD 1 million each financial year on
Settle your International Credit Card dues through your NRO account
for cards issued by banks in India
The principal amount in an NRO Account is completely tax free while
the interest earned is taxed* at 30% plus applicable surcharge and
education cess (interest income less than Rs. Ten Lakhs)
*Tax Deducted at Source (TDS) certificates are issued.
NRE Rupee Savings

Manage your overseas earnings with a totally tax-free, completely repatriable
NRE Savings account. Benefit from an account designed to help you earn more
from your Rupee savings in India.
What makes the NRE Rupee Savings account different?
Deposits from a local source accepted only if reparable

No charge deposits of funds received from abroad as Traveler's cheques
or foreign currency brought through normal banking channels into your
account
Accepts maturity proceeds of investments purchased from even NRE /
FCNR Accounts
The principal and interest earned in an NRE Account are completely
tax free and exempt from Income Tax in India
Rupee Advantage Plan

Earn higher returns with an FCNR Deposit combined with a forward cover in
INR under the Rupee Advantage Plan. Get this plan and add on to the benefits
of the FCNR deposit.
What makes the Rupee Advantage Plan different?
Involves a forward contract on your FCNR Deposit in USD / GBP /

EURO / JPY
Deposit a minimum of USD 25,000 or equivalent in any of the four
currencies
Deposit for a period of 1 year 1 day for higher interest
Please note: Rates and Yields offered are provisional and subject to change at
any time without prior notice. Please contact your Branch or Relationship
Manager to confirm the yield before actual placement of funds.
FCNR Deposits

Enjoy attractive returns from a fully reparable, zero tax liability FCNR Deposit
account in various currencies. Protect your money from exchange rate
fluctuations by maintaining your FCNR deposit in international currencies.
What makes the FCNR Deposit different?
Rupee conversion to Foreign currency before booking as an FCNR

deposit
Deposits from a local source accepted only if reparable
account
FCNR Accounts
NRO Term Deposits

Maximize your earnings in India and get easy access to your funds anywhere
with NRO TDs. Carry out your transactions in India through your Term
Deposits held in Indian Rupees.
What makes the NRO Rupee Term Deposit different?
Deposits from any source in India and abroad are accepted subject to
repatriation restrictions for foreign currency
Pension, dividend, rent, and other current income can be repatriated on
Transfer amounts up to a limit of USD 1 million each financial year on
Settle your International Credit Card dues through your NRO account
for cards issued by banks in India

The principal amount in an NRO Account is completely tax free while
the interest earned is taxed* at 30% plus applicable surcharge and
education cess (interest income less than Rs. Ten Lakhs)
Gain with the Kotak Max Yield NRO Deposit!

Now you can earn more from your savings with a Kotak Mahindra Bank Max
Yield NRO Deposit. Benefit from lowered tax rates on your Kotak Max Yield
NRO Fixed Deposit under the Double Taxation Avoidance Agreement (DTAA)
of India with these countries
Rate of TDS on interest forRate of TDS on interest for

Country Max Yield NRO DepositRegular NRO Deposit(without
(with DTAA benefit) DTAA benefit)
US 15% 30% plus surcharge and cess
UK 15% 30% plus surcharge and cess
Singapore 15% 30% plus surcharge and cess
South Africa 15% 30% plus surcharge and cess
Belgium 15% 30% plus surcharge and cess
Kenya 15% 30% plus surcharge and cess
Saudi Arabia 15% 30% plus surcharge and cess
UAE 15% 30% plus surcharge and cess
Australia 15% 30% plus surcharge and cess
Canada 15% 30% plus surcharge and cess
**Apart from basic account opening documentation, to avail of the DTAA

benefit, a simple declaration stating that you are eligible for the DTAA
provision will be required.
NRE Term Deposits

Benefit from NRE TDs with no tax liability, complete repatriability and a host
of value added services. Invest in this term deposit to earn more from your India
savings.
What makes the NRE Rupee Term Deposit different?
Deposits from a local source accepted only if repatriable
account
FCNR Accounts
P O Box Services
Sending your documents to India from the US or UK is now convenient and

cost-effective!
Sending your banking documents to us is now a matter of ease. Simply send a
local courier to the address mentioned below.
Your documents shall be picked up twice a week. Please do not include cheques
or any other financial instruments, Kotak Mahindra Bank reserves the right to
destroy such instruments or return them back to you.
TO KOTAK MAHINDRA BANK, INDIA - NRI SERVICES

USA
BOM/USA/1217614/KOT
SPRING, P.O. BOX 688, BUFFALO,
NY 14240-0688, UNITED STATES OF AMERICA
UK
BOM/UK/1217614/KOT
P.O BOX NO. 66, HOUNSLOW,
TW59RT, UNITED KINGDOM

TO SEND YOUR DOCUMENTS TO KOTAK MAHINDRA BANK,
INDIA:
a. Print out this request letter- PO Box request form
b. Fill it, sign it and attach it with your documents
c. Send it by local, ordinary post to the P O Box location mentioned above. Do
not use a courier or registered post service.
Terms & Conditions

Kotak Mahindra Bank Ltd., India shall not be responsible for any loss
in transit or any monetary loss including loss on account of change in
exchange rates, interest rates, deposit value date etc. arising due to the
time elapsed due to return of the monetary instrument. Kotak Mahindra
Bank Ltd. India is only availing of the services provided by Quantum
Mail Logistics India Pvt. Ltd, in the aforesaid countries
Twice a week, Quantum Mail Logistics India Pvt. Ltd India (the service
provider), opens the P.O. Box and collects all packets / envelopes and
couriers all documents to the Quantum Mail Logistics India Pvt. Ltd
India Office from where they are sent to Kotak Mahindra Bank, NRI
Services.
Kotak Mahindra Bank Ltd. is not responsible for any loss in document
arising out of the documents sent to a wrong address or documents lost
in transit before reaching the Kotak Mahindra Bank Ltd. P.O. Box
Confidentiality of the documents send by the customer would be
maintained
The users of the Post Box (PB) facility are availing the service at their
own risk
Neither Kotak Mahindra Bank Ltd. nor Quantum Mail Logistics India
Pvt. Ltd India will be responsible or liable to the user or any third party
for the "Envelopes/Consignments or its Contents" (collectively
referred as "Consignments") during the transit from the user to the PB
On receipt of the Consignments in the PB, Quantum Mail Logistics
India Pvt. Ltd shall be responsible for the Consignment to the user till it

is transshipped and delivered to Kotak Mahindra Bank Ltd. - CPC NRI
Cell, Mumbai. By availing the service of PB the user shall be deemed
to have agreed to entrust the transshipment to India in his sole risk and
discretion to G3 worldwide India and Kotak Mahindra Bank Ltd. is not
liable or responsible for any loss or destruction of the Consignments in
the hands of Quantum Mail Logistics India Pvt. Ltd.
User is aware that Kotak Mahindra Bank Ltd. will not process the
documents without furnishing this letter duly filled with and in the
event no letter or incomplete information are furnished Kotak Mahindra
Bank Ltd. is neither responsible to return the documents to the user or
to keep it in safe custody
In the event the users instruction/s cannot be carried out owing to any
discrepancy or otherwise Kotak Mahindra Bank Ltd. may inform the
user by email to the email ID furnished by the user. Kotak Mahindra
Bank Ltd. is not responsible for non-receipt of such email on account of
any incorrect email ID or systemic error or non-acceptance by the
computer system of the user
Kotak Mahindra Bank Ltd. shall in its sole discretion destroy the
documents after two months of receipt without any further reference to
the user and the user agrees that Kotak Mahindra Bank Ltd. is not liable
or responsible to either user or any other person for such destruction
User agrees that he shall be solely responsible for the contents of the
Consignment and shall indemnify Kotak Mahindra Bank Ltd. for any loss
or damage suffered to it on account of handling the contents or merely the
letter being addressed to it in view of legal, regulatory or contractual
requirements of the user.
Access India Debit Card

Enjoy seamless India access through your NRO Account whenever you visit
home. Use this ATM plus debit card to carry out your India transactions when
you visit home.

Benefits of the Access India Card
Access to any VISA ATM and stores accepting VISA in India

Gift an Add-on Card to a person of your choice (above 18 years) for
their personal use. Specify a daily withdrawal limit and link it with your
account
Stay updated on your account status with SMS alerts
Eligibility
NRO Savings / Current Account
Global Debit Card

Benefit from an International ATM plus debit card with VISA Power across the
world. Access your account as you travel across countries and enjoy the benefits
of the Kotak Global Debit Card.
Benefits of the Global Debit Card
Worldwide access to any VISA ATM and stores accepting VISA

worldwide
Specify a daily withdrawal limit and link it with your account
Stay updated on your account status with SMS alerts
Eligibility
NRE Savings / Current Account
Phone Banking
Get personalized service round the clock at our 24 hr Customer Contact Center.
Use the Kotak Mahindra Bank toll free number to access your account
anywhere you go.
8 Benefits of Phone Banking
Instruct a Kotak officer to transact once you have the single or

unconditional signing authority on your account
View account balance, activity, transfer progress and more

Cheque book request and account statements
Request the latest interest and exchange rates
State standing instructions or stop cheque payments
Request Transfer of funds between accounts (NEFT)
Open a Term Deposit or get information
Inquire transaction status, Demat status of securities
Online Banking
Net Banking for easy access to your deposit, demat and investment accounts
24x7. View and transact with a single or unconditional signing authority on
your account.
8 Benefits of Net Banking
Log in with any of your Kotak Mahindra Bank NRI accounts

View account balance, activity, transfer progress and more
View and update personal details
Request for a cheque book, PIN and other enhanced features
Transfer funds online between accounts (NEFT)
Open a Term Deposit
View securities available for Demat
Inquire transaction status, Demat status of securities
Privy League
Kotak Mahindra Bank introduces Privy League, a premium banking services

offering financial solutions with exclusive benefits. Join the Privy League to
expand your lifestyle, grow your wealth, travel the world, luxuriously and retire
to comfort while you meet your responsibilities.
Privy League Membership:
Available to Resident Individuals and Non Resident Individuals

Members above the age of 18 years only

Choice of two plans based on your Financial Objective and Portfolio
o Gold Plan for Relationship Value* of INR 10 Lakhs
o Platinum Plan at a Relationship Value* of INR 25 Lakhs
Note: Relationship Value comprises of your balance across Savings Accounts,

Deposits and Investments. Privy League members are required to maintain a
Savings Account with an Average Quarterly Balance (AQB) of INR Rs. 50,000.
Special Privileges for Privy League Customers:

Premium Banking: With Privy League you enjoy access to a range of
financial solutions with your bank account in addition to accelerated customer
service from your dedicated Relationship Manager.
Banking Privileges:
Privy League Platinum Debit and ATM Card with flexi limit facility and
added waivers and offers
Home Banking services like Bill Pay, Kotak Payment Gateway and
Investment Convenience
Locker services across multiple locations (in select branches) at a
preferential price
Kotak Gold Eternity offers on are Swiss-made, 24 - Carat pure, 99.99%

Assay certified Gold coins and bars ranging from 5 to 100 gms
Internet banking to access special offers, promotions and exclusive
benefits under the Privileges section
Preferred Processing of banking transactions at all branch locations
Special Fees and Charges on various services
Tax Advisory Services through our tie-up with Sudit K. Parekh & Co.
and easy tax payments payable at a Kotak Mahindra Bank branch itself
Lifestyle Updates: Experience the world of culture, sport and indulge your
choice of leisure activities with Privy League lifestyle offers.
Lifestyle Privileges:

Dining benefits at the best restaurants in town
Entertainment & Leisure Privileges with exclusive invites to movies,
premiers, theatrical plays, sporting events and more
Attend knowledge-based seminars, Tax Advisory or Investment
workshops, premium car test-drives and lifestyle product launches
Convenience Offers like gifting services to your loved ones on special
days round the year from a choice of flowers, bouquets and chocolates
Travel and Holiday offers with tie ups for car rentals, travel operators,
hotels, rejuvenation centres and much more
Concierge Services available with the VISA Platinum Card on travel
plans, business equipment, entertainment plans and other specialty
services courtesy of VISA
Note: Terms and Conditions applicable. Details of Lifestyle Privileges are

available under the Post Login section of Net Banking.
TRANSFERS
Direct Debit
Make a paperless transfer with just one click
Use this simple method to send home money from the comfort of home. This
online remittance facility uses the standard Automated Clearing House (ACH)
platform.
How you can register for Direct Debit
Log on to FUNDS to HOME

Register for Direct Debit
Provide details
Validate your account
After 5 days, activate facility from a link in your FUNDS to HOME
account
Send your remittance
Get funds in your Kotak Mahindra Bank Account within 5 working days*
Demand Drafts will be delivered in 3 working days**

*5 working days after instructions have been received by us. Working days- not
including Saturdays, Sundays and Public Holidays in both countries.
*3 days after receipt of funds at Kotak Mahindra Bank for Metros and Non-
Metros (not including Saturdays, Sundays and Public Holidays).
Wire Transfer
Send home money to your Kotak bank account
Make a direct transfer from your account abroad to Kotak Mahindra Bank to
send home money in the most secure manner.
REGISTRATION
Cheque
Now you can encash any cheques drawn on your Kotak Mahindra Bank
Account through your FUNDStoHOME account.
How to make a Cheque transfer
Log on to FUNDS to HOME

Provide cheque details
Mail the instrument to
PO Box 11448A - New York NY 10286 1448*
This Lock Box address is mentioned in the deposit slip
Remittances from ME

Transfer money at economical rates through the Exchange Houses and Money
Transfer Agents having an arrangement with Kotak Mahindra Bank.
Make a cost-effective money transfer through agents across the Gulf, North
America, Europe, Asia and Australasia. This remittance in Indian Rupees is
specially designed to benefit NRIs in the Middle East.
How do I transfer money through a Kotak partner?
Select the branch or designated associate outlet of your convenience.

Wire Transfer
Use Kotak Mahindra Bank's wire transfer facility to make secure international
wire transfers from your bank account. You can move money from your account
to a Kotak Mahindra Bank account in India with ease.
What details do I need for a wire transfer?
Kotak Mahindra Bank's Correspondent Bank Nostro account number and

SWIFT Code. Click here to see Correspondent Banks.
The beneficiary's account number with Kotak Mahindra Bank Branch.
Specify the identification for your name and address in the remittance
message in this format to your overseas banker.
State the purpose of the remittance with instructions for the Bank to
invest the funds. (To book an FCNR term deposit, mention it clearly
including the currency of deposit)
Ensure mention of complete details in the message by the local remitting
bank.
Kotak Mahindra Bank SWIFT Code : KKBKINBB
NOTE: Kotak Mahindra Bank does not take any responsibility for delay in
receipt of funds from the Originating Bank due to incomplete information.
Cheque
Write out a Cheque or demand draft favoring your Kotak Mahindra Bank
Account and leave the money transfer to us.
Remember! Check if the demand draft is valid and not endorsed

Currency Turn Around Time for Transfer to beneficiary Account*
6 working ** days for USD instruments drawn on banks in
USD New York City.
14 working ** days otherwise.
Euro 10 working ** days
GBP 10 working ** days
SGD 21 working ** days
* From the date of credit to Kotak Mahindra Bank's nostro account.
** Excluding Saturdays, Sundays and Public Holidays

INVESTMENTS:
Investment Account
View your portfolio, receive alerts and do more in your Investment account at
your convenience. As a Kotak Mahindra Bank customer, you can open your
Investment account even with a zero balance.
Your Kotak Investment Account gives you more:
Stay updated with a daily MF Portfolio statement

Link your Net Banking account with your MF purchases for filling MF
forms or cheques for every transaction
Receive redemption proceeds directly in your Bank Ac
View your Portfolio Statement for a consolidated report of all your MF
investments, across schemes, with latest NAV information, updated
returns status and more
Get Mutual Fund Recommendations
Choose between opening an online investment account with us on a
reparable or on a non-reparable basis*.
NOTE: As Per the regulatory framework, the investments for all existing
Kotak customers with an investment account are re-grouped into separate
investment accounts. The re-grouping is based on the Reparability status of the
Folios held to help you manage your investments efficiently.
*Online Mutual Fund investment services are available to NRIs in all countries
except those based in USA and Canada. NRIs based in UK can register on visit
to India
Recommendation
Earn more with your pick of mutual funds from a recommended list of
consistent and highly performing mutual funds. Kotak prepares a list of top
performing mutual funds for your reference every quarter.

How do you judge MF performance?
Kotak's comprehensive process accounts for both high returns and consistency
of returns to select the best performing Mutual Fund schemes.
The main criterion for selection is the Excess Return Potential Ratio to test the
performance consistency of the funds. The research includes keen analysis
across four time horizons, every 6 months. Some factors are:
Reward to Risk Analysis

Portfolio Characteristics
Corpus size
MF Assistance
Gain from expert advice and analysis at each step with Kotak Mahindra's
experienced research team. Find the MF option most suitable for you with latest
mutual fund communication like fact sheets from Kotak's team of experts.
How we choose MFs on the Kotak advisory list?

The Kotak team of experts investigates:
Asset Management Company's Investment philosophy

Portfolio quality
Risk-adjusted returns of the scheme
What does the advisory list include?

The Kotak MF advisory list ranges from Debt to Equity funds. These MFs are
selected from high performing schemes observed under reputed Mutual Fund
houses like Franklin Templeton, Reliance, Prudential ICICI and others.
Demat Account
Invest in the Indian market through Kotak depository services with easy to trade
shares in the "demat" format. Do more with your investments through Kotak
Mahindra Bank's highly efficient depository service. Once you consolidate your
shares in a Demat account, you can trade all your securities at your
convenience.

Why open a Kotak Demat Account?
At Kotak Mahindra Bank, you pay the minimum service charges in the
market
We take care of paper work like debt requirements of companies (Issue of
Commercial Paper, Certificate of Deposits, etc.) to us
Your composite Demat Account can hold not just equity shares but also
Government Securities and bonds
Get any query or assistance from a dedicated and trained Customer Care
Officer even while you transact
Portfolio Investment Services
You can now purchase equity shares and convertible debentures in India under
the Portfolio Investment Scheme (PINS). With the Kotak Group of financial
services, your transactions are seamless across accounts. It is easier than ever to
invest and earn from the Indian secondary market through a PINS account
designed for NRIs by the Reserve Bank of India.
How can I open a PINS account?

Open a PINS account
at any of these RBI Designated Branches

Call Kotak 24x7 Customer Care
Mail us at nriservices@kotak.com
Visit any Kotak Branch
NOTE: Online PINS investment services are available to NRIs in all countries
except those based in USA and Canada. NRIs based in non GCC countries can
register on visit to India.
Kotak Term and Preferred Term Plans:

Now you can profit from a pure risk cover policy that also offers life cover at
minimal costs. This plan helps you pay off your outstanding debts like a
mortgage, a home loan etc. The Kotak Preferred Term Plan offers special
premium rates for a sum assured of Rs.10 lakhs and above for non-smokers and
women. The policy is non-participating but has value added benefits you can
choose to gain with this plan.
How do you gain?
Low cost insurance plan with high cover

Special rates for women and non-tobacco users
Flexibility in choice of Premium Payment
Choose from - regular, single and limited premium payment options
Growth Plans
Choose the right insurance policy from a range of options
Kotak Smart Advantage Plan:

Make way for your future plans with the Kotak Smart Advantage policy from
Kotak Life Insurance. This market linked plan invests your savings with 100%
premium allocations to make your money grow consistently over a long term.
How do you gain?
Guaranteed returns of up to 275% on the first year premium, paid at

maturity
Increased fund value with regular loyalty bonus during the term of the
policy
Maximized earnings with 100%* Premium allocation from second year
onwards
Flexible choice of life cover
Protection for your family and loved ones
*Applicable for premium sizes of Rs. 36,000 and above annually from second
year onwards.
Kotak Easy Growth Plan:

Earn more today with the market linked Kotak Easy Growth Plan with a single
premium option. This insurance plan meets the need for lifelong security with a
single payment through your choice of up to six fund options.

How do you gain?
One-time premium payment

Life ling Investment benefit
Choose from six fund options varying in growth and returns
Increase investment by up to 25% of single premium paid
Easy exit options with access to cash withdrawal
Kotak Capital Multiplier Plan:

See your investment multiply with the Kotak Capital Multiplier Plan. This
endowment plan allows your capital to grow in the market and also gives you
the flexibility to withdraw amounts whenever you require it.
How do you gain?
Flexible extension of policy term beyond maturity

Earn additional 10% above the original life-cover across the policy term
Withdraw plan maturity proceeds with a free ATM card
Increased fund value with regular loyalty bonus during the term of the
policy
Add to your policy amount with top-up premiums
Savings Plans
Choose the right insurance policy from a range of options
Kotak Flexi Plan:

With this market-linked investment plan, you can provide for the future and
ensure protection for your family. The Kotak Flexi plan manages to earn
efficient returns over the long term while securing a Guaranteed Maturity Value
at the same time.
How do you gain?
Grow your money with market highs and be risk safe during market lows
Choose from a wide range of funds per your risk capacity
Select a Limited Premium or Regular premium payment option

Increase your Investments any time with a premium top-up
Enjoy easy liquidity through partial withdrawal of maturity proceeds
Kotak Endowment Plan:

Protect your family during contingencies while growing your savings today.
Kotak Endowment Plan is a participating plan that allows you to earn over a
long term through regular investment.
How do you gain?
Earn from your savings and enjoy life cover

Get extra bonuses on the plan
Make a Limited premium payment per your convenience
Kotak Premium Return Plan:

Get risk coverage and assured returns with the Kotak Premium Return plan.
You receive a certain amount of the premiums paid back depending on the
option you choose along with maturity benefits available.
How do you gain?
Minimum premium payments

Get back premiums paid depending on term of the plan
Hassle free plan as it does not require a medical examination
Kotak Money Back Plan:

Earn back a percent of the amount assured in cash with the Kotak Money Back
Plan. This participating, savings plan gives you a life cover benefit while
allowing you a regular income every five years.
How do you gain?
Minimum premium payments

Benefit from guaranteed Additions on maturity

Get a 7% increase in sum assured at the end of each year under death
benefit
Enjoy bonuses from the plan
Kotak Safe Investment Plan II:

Benefit from a unit linked plan that earns through the capital market and also
offers risk cover. You can enjoy a Guaranteed Maturity Value where you profit
from the market highs but do not lose with market lows.
How do you gain?
Grow your money with market highs and be risk safe during market lows
Choose from a six fund options per your risk capacity
Select a flexible risk cover option per your needs
Enjoy easy liquidity through partial withdrawal of maturity proceeds
Kotak Retirement Income Plan:

Save for your old age with the Kotak Retirement Income plan with a choice of
"with cover" for life or "without cover."
How do you gain?
Specify retirement age anytime between 45 yrs. and 65 yrs.

Flexibility to opt for early retirement due to ill-health
Increase investments with a premium top-up before retirement
Get Automatic Cover Maintenance, under the "with cover" option to
ensure coverage in spite of unpaid premiums after first three years of the
term.
Kotak Retirement Income Plan (Unit Linked):

Make a high earning investment for your future with unit linked Kotak
Retirement Plan. This investment plan earns for you even after you are no
longer employed. You can choose the extent of investment risk and guarantee
against falling markets.

How do you gain?
Maximum earnings with capital preservation

Choose from five fund options
Flexibility to opt for early retirement due to ill-health

………NRI HELP CENTRE...........
OIFC
The Kotak Mahindra Group has joined the Overseas Indian Facilitation Centre
(OIFC) as a Strategic Partner. This alliance will give Kotak a platform to share
its comprehensive range of Wealth Management Advisory and Investment
offerings in form of products and services for Non Resident Indians (NRIs) and
Persons of Indian Origin (PIOs). These offerings from the Group are
specifically customized to suit the overseas Indian investors' personal financial
needs.
The Overseas Indian Facilitation Centre is a not-for-profit public private

initiative between the Ministry of Overseas Indian Affairs (MOIA) and
Confederation of Indian Industry (CII), established as a focal point for
facilitating the process of economic engagement of the Indian diaspora with
India. At the Pravasi Bharatiya Divas Convention, being hosted this year (7th -
9th January, 2010), at Vigyan Bhawan, New Delhi, Kotak will also showcase its
expansive portfolio of financial products, with interactive opportunities for
participants to get a closer insights of all that the Group is into and avail of
taxation, real estate or financial advisory services. The focus of this convention
held every year is on bringing together eminent overseas Indians to engage,
interact, and build networks for mutual benefit, besides having Ministers of
States together on issues that their states need to attend on priority to improve
facilities and incentives for the overseas Indian community
Wealth Management
Kotak Wealth Management brings you a complete, customized financial plan
that advises you on your asset allocation and what schemes to invest in,
factoring in all your financial objectives.
The products offered are broadly divided into Traditional and Specialized
categories:

Traditional Investments comprise mainly of Direct Equity, Mutual Funds,
Insurance
Specialized Investments include diverse investment opportunities namely:
o Structured Products- a pre-packaged investment strategy based on
…derivatives, such as a single security, a basket of securities,
options, indices, commodities, debt issuances and foreign
currencies. A feature of …some structured products is a "principal
protection" function which offers …protection of principal if held
to maturity.
o Private Equity- equity securities of unlisted companies.
o Real Estate - Real estate funds founded by a group of real estate
professionals/experts to 'manage' property/real estate for the
investor.
o Estate Planning- a process involving the counsel of professional
advisors who are familiar with your goals and concerns, your assets
and how they are owned, and your family structure.
International Subsidiaries
The international subsidiaries of Kotak Mahindra Bank Limited, through their
offices in London, New York, Dubai, Mauritius, San Francisco and Singapore
specialize in managing a wide range of India investment funds through which
overseas investors like you can invest in India. Click here to know more
NRI Banking
Kotak Mahindra Bank offers Banking and Investment Solutions for a jet setting
Non Resident Indian like you. Click here to know more
Briefly, the product range includes NRE Accounts- available in the form of
Savings and Term Deposits which are completely reparable and tax-free, NRO
accounts- available in the form of Savings and Term Deposits to manage your
income in India, Foreign Currency Non Resident Accounts (FCNR)- available
in the form of Term deposits denominated in USD/GBP/EUR/ JPY which are
completely reparable and tax-free.
There are also special products like Max Yield Deposits where you can earn a
higher return on your NRO deposits through the DTAA benefit, Ace Deposit- a

unique product that invests interest earned on your deposit into Equity Mutual
Funds and hence creates an avenue for earning market linked returns, while
safeguarding the principal amount of the Fixed Deposit, Overdraft Facility
against Term Deposits, and Privy League which is an exclusive offering for
select clientele who expect more out of their banking experience.
Investments through Kotak Mahindra Bank

Portfolio Investment Services
Profit from investment in equity shares in India under the Portfolio Investment
Scheme (PINS). You have the option of investing online* too!
Mutual Fund Services

View your portfolio; receive alerts and more through your Investment account
at your convenience. Choose between opening an online investment account
with us on a repatriable or on a non repatriable basis*.
Home Finance
Buy your space in India with any of Kotak's flexible options to finance your
dream home. Get a host of attractive features customized to NRI needs with an
easy to avail home loan.
*the online facility is not available in certain countries. Contact us for this
information.
Kotak Securities - Direct Equity Investments

Kotak Securities offers you specialized products depending on your
requirements and also provides conventional brokerage & advisory services.
Click here to know more
Investment products offered include
TRINITY- seamless investment facility into shares and mutual funds

Portfolio Management Schemes
Discretionary - Investing in equities requires time, knowledge and constant
monitoring of the market. If you need expert help, this scheme is an
excellent solution
Non-Discretionary- A consultative and transparent method of investing
where you are always consulted and informed of investment decisions,
thus giving you total control
Corporate fixed deposits & government bonds
Kotak Life Insurance

At Kotak Life Insurance, we understand your attachment to your homeland and
need to save for you family's future. We offer you a suite of products that would
suit your requirements. Click here to know more.
Basic information:
Investment Modes- Invest seamlessly from your NRE or NRO bank

accounts.
Foreign currency policy- you have the option of foreign currency policy,
i.e. your Sum Assured is represented in equivalent foreign currency.
Claim Settlement - Your claims are paid in the same proportion of the
currency in which you make premier payments
Tax Benefits- Under the Income Tax Act, 1961:
Tax deductions are available against the income earned in India and
taxable in India..
The claims and the premiums paid are tax free
Risk Profiler
Estimate and understand your investment risk profile based on 11 questions to
help recognize the right investment type for your profile.
Investment Wizard
Use this simple wizard for getting started on your India investments with three
easy steps.
PAN Procedure
Every Indian citizen entering a financial transaction in India is mandatorily
required to have a Permanent Account Number. It is the sole identification
number for the purpose of tax payments and investments.
What is a PAN Card?

Stands For: Permanent Account Number (PAN)
Contains: 10 alphanumeric numbers
Issued by: The Income Tax Department
Managed by: UTI Investor Services Ltd. (UTIISL)
The National Securities Depository Limited
(NSDL)
Validity: Lifetime
START
Why apply for an NRI PAN Card?

An NRI PAN Card is required for almost all transactions of which some are:
Paying taxes on Indian income under the Income Tax Act, 1961
Investing in securities per the Securities and Exchange Board of India
(SEBI)*
Investing in Mutual Fund schemes for all existing and prospective
investors
Opening an account through the enhanced Know Your Customer ('KYC')
procedure**
Purchase and sale of property in India
Purchase and payments of vehicles
Securing a telephone connections
Making time deposits in a bank worth over Rs.50,000
* Securities and Exchange Board of India (SEBI) Circular dated April 27, 2007
for all transactions irrespective of the amount with effect from July 2, 2007
** For any investment or transaction equal to or more than Rs. 50,000/- under
the Prevention of Money Laundering Act, 2002
PAN Application

How to Apply for an NRI PAN Card?
Read Instructions to fill Form 49A, the application form for a PAN.
Select a convenient method to access the form
1. Online form submission through UTITSL

2. Download form from the Income Tax, UTIISL and NDSL
websites.
3. Collect form locally from IT PAN Service Centers or TIN
Facilitation Centers
Attach required proofs and make the payment.
Beware of AIR Reports of Taxmen

By Ameet Patel
The Government of India is in a very aggressive mode as far as collecting
information about large financial transactions is concerned and also about
tracking tax evaders. There is a also a very strong movement to make many
processes relating to tax administration electronic and automated. This would
ensure that the Income-tax department has a central database of all tax payers in
the country along with details of large financial transactions entered into by
each such person in a year.
One important tool used by the Government to collect such information is the
AIR.
What is AIR?
AIR is an abbreviation for the term "Annual Information Return". AIR was
made effective from the financial year 2003-04. An AIR has to be filed by the
prescribed person who is responsible for registering or maintaining books of
accounts or other documents containing record on any specified financial
transaction under any law for the time being in force.
Use of AIR?
The purpose of collecting such information is to ensure that a person who enters
into such transactions duly accounts for all such transactions for which
information is independently collected from the specified persons through the
AIR.
Section 14A of the Income-Tax Act

By Ameet Patel
Introduction:
Section 14A was brought onto the statute by the Finance Act, 2001 with
retrospective effect from 1st April, 1962. While introducing this section, the
Finance Minister has explained the rationale for this section as follows:
"No deduction for expenditure incurred in respect of exempt income
against taxable income
Certain incomes are not includible while computing the total income as these
are exempt under various provisions of the Act. There have been cases where
deductions have been claimed in respect of such exempt income. This in effect
means that the tax incentive given by way of exemptions to certain categories of
income is being used to reduce also the tax payable on the non-exempt income
by debiting the expenses incurred to earn the exempt income against taxable
income. This is against the basic principles of taxation whereby only the net
income, i.e., gross income minus the expenditure, is taxed. On the same
analogy, the exemption is also in respect of the net income. Expenses incurred
can be allowed only to the extent they are relatable to the earning of taxable
income
It is proposed to insert a new section 14A so as to clarify the intention of the
legislature since the inception of the Income-tax Act, 1961,that no deduction
shall be made in respect of any expenditure incurred by the assesse in relation to
income which does not form part of the total income under the Income-tax Act."
Objective of the section:

Based on the above rationale, it would seem that the objective of the section is
to prevent tax payers from setting off expenses incurred to earn tax free income
against other income which is taxable. What this means therefore is that a tax
payer must, in the first place, have tax free income and must have actually
incurred expenses to earn such tax free income. The next step then would be to
quantify such expenses and ensure that the same are not claimed by the tax
payer as a deduction against any other income.
Computation of the disallowance:

As per the section, in the following circumstances, the tax officer has to
compute the disallowance as per Rule 8D:
1) When he is not satisfied with the correctness of the claim of expenditure

made by the tax payer or
2) When the tax payer claims that he has not incurred any expenditure to earn
tax free income.
Rule 8D lays down the computation mechanism for this purpose. The formula
laid down in the said Rule is highly unfair and does not take into cognisance the
facts of any case. It merely lays down an arithmetical method of arriving at a
disallowance. This disallowance often comes to much more than the entire
expenses debited to the Profit and Loss Account by the tax payer.
Recent developments:
Once the Rule 8D was notified sometime in early 2008, the tax officers have
been mechanically applying the said Rule to all pending assessments. In most
cases, they have been rejecting the working prepared by the tax payer and huge
disallowances have been made under section 14A based on the irrational
computational mechanism laid down in the Rule.
However, the latest development has made matters even worse now. Recently,
the Income-tax Appellate Tribunal had occasion to decide on the issue of
applicability of the section in those cases where a tax payer had invested money
in investments, the income from which, as and when received, would be tax free
in the hands of the tax payer. In view of conflicting decisions of various
Tribunals in the matter, it was decided to constitute a Special Bench. This
Special Bench at Delhi has given its decision vide its consolidated order dated
5th August, 2009 in the case of ITA Nos. 87/Del/2008, 4788/Del/2007 and
233/Ahd/2006
The gist of the Special Bench decision is that section 14A would be applicable
even in those cases where the tax payer has not earned any income which is tax
free but has invested funds in investments which, when they start yielding
income, such income would be tax free. The rationale of the Special Bench in
coming to this conclusion was its interpretation of the language of section 14A.
According to the Special Bench, what was relevant was to work out the

expenditure in relation to the exempt income and not to examine whether the
expenditure incurred by the assesse has resulted into exempt income or taxable
income. It held that when the expenditure is incurred in relation to income
which does not form part of the total income , it has to suffer the disallowance
irrespective of the fact whether the income is earned by the assesse or not.
Section 14A does not envisage any such exception The Tribunal also held that
the earlier decisions of the Supreme Court in the case of Maharashtra Sugar
Mills and Rajasthan State Warehousing holding that if there is one indivisible
business, the entire expenditure is allowable, would have no application after
the introduction of section 14A. Thus, as per this decision, even if the tax payer
has not earned any tax free income in a year, yet, a part of his expenses would
necessarily have to be disallowed under section 14A read with Rule 8D if funds
have been borrowed at a cost and if the tax payer has investments in shares or
mutual funds, the income from which, when received, would be tax free.
Implications of the decision:

The implications of this decision would be very harsh on those tax payers who
have borrowings and who have invested in shares and mutual funds. In such
cases, even if the investments are long term and/or strategic ones and even if
there is no income actually accruing or received during a year, there would still
be a disallowance of part of the interest paid based on the formula laid down in
Rule 8D. It is pertinent to note that the decision is that of the Special Bench and
hence carries more persuasive value than an ordinary Tribunal decision. This is
also binding on the other benches of the Tribunal. Hence, now to adopt a
different view, one will have to wait till some High Court decides the matter in
favor of the assesse.
It would be very risky to take a stand that no expenses have been incurred to
earn tax free income or that since there is no tax free income; the question of
disallowance of any expense does not arise
Tax Alert
In a recent ruling in the case of a Mauritian company E*TRADE Mauritius
Ltd.1 (ET Mauritius), the Authority for Advance Ruling (AAR) held that ET
Mauritius is not liable to pay capital gains tax in India in respect of the transfer
of shares held by it in AAR Ruling in case of E Trade Mauritius- Read
Details.pdf

Advisor's Profile
Ameet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh &
Co., Chartered Accountants. Ameet is a rank holder and has secured ranks at the
Inter and Final CA examinations at the all India level. He is an avid writer and
has contributed articles to various magazines and websites including CNBC's
moneycontrol.com. He specializes in corporate taxation and advises several
reputed companies, mutual funds and FIIs. He is also the Immediate Past
President of Bombay Chartered Accountants' Society which is a voluntary
organization of Chartered Accountants and has more than 8,000 members from
all over India. He is currently the Chairman of its InfoTech Committee and a
member of the Taxation Committee. He has co-authored two books on taxation
Overdraft Facility
Overdraft limit against NRE and FCNR Deposits enhanced to Rs.100 Lakhs
against the previous overdraft limit of Rs.20 Lakhs.
Credit to NRE encashment

Proceeds of demand drafts/ banker's Cheque issued against encashment of
foreign currency can be credited to NRE accounts where such instrument issued
is supported by an Encashment Certificate issued by AD category I/ category II
(Authorized Money Changers).
NRO account
Remittance facility is available up to USD 1 million per financial year subject to
prescribed documentation.

Analysis
Summer internship program is a crucial part of building student’s practical

know-how about real corporate market. In this business scenario it must require
to update ourselves with current market happenings relating to banking,
insurance, economy, and other various markets.
For such a requirement the institute provides the summer internship program for
students for updating themselves to current corporate scenario. On this basis our
NIS Academy provided us the SIP in KOTAK MAHINDRA BANK at the
V.V.Nagar branch. For such training in KOTAK MAHINDRA BANK, the
interview was conducted at our institute. And finally the 9 students were
selected for further training in bank. The training period is for 2 months i.e. 1st
July to 31st August.
Before starting our training, the branch manager of KOTAK MAHINDRA
BANK i.e. Mr. Pramod Chauhan had provided us the orientation lectures
towards the project at KOTAK BANK. He has imparts needed knowledge about
the project proper. He has also solved the queries of students about banking
performance towards its clients. Then our actual training started.
The training is based on NRI banking products and services provided by the
bank and it contains the project title named as “Market study and customer
mapping for banking products and services“. In such project training we have
prepared a questionnaire regarding NRI database to provide better banking
services to them. For that purpose we had obliged to collect NRI information
within the ANAND District guided by the branch manager.
For further training for collecting NRI information, we have prepared certain
routes to different villages of ANAND. Then we have divided two groups for
collecting data. By this way we have covered much villages of ANAND for our
project training. We gain much experience from such a field work like
confidence in ourselves, body language, and our behavior towards different
class of people, etc.
During training period, the students are required to report at KOTAK Bank on a
daily basis for submitting NRI database information. This is because we were
provided some guidance from the Branch Manager for effective presentation to
the people for collecting information from them. By the efforts of both group of
students, we reached at approximately 1200 respondents for the purpose of
collecting NRI information from them. From which 400 were NRIs and we had

analyzed these 400 NRIs for further procedure of analysis for providing them
better Banking products and services provided by the KOTAK MAHINDRA
BANK.

CONCLUSION
The youth today has a large number of avenues available to them to build a
career. They walk out with a graduation degree from various universities, with
great aspiration and expectations. These individuals dream to make big in life
with their inherent skills here, it become difficult for them to decide the job that
suits their skills match their expectation. This young and aspiring generation is
very valuable.
It has been great opportunity for us to be placed at Kotak Mahindra bank for
summer internship training for the period of two months. Where I gained lot of
practical knowledge, how talking with customers, customer value, details of
NRI customers how help the bank by guiding and teaching of PRAMOD SIR
(Branch manager of Kotak bank, V.V.Nagar).

Kotak Report

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NIS ACADEMY, MBA 2010 Page 1

Sir no. Particulars Page no.

NIS ACADEMY, MBA 2010 Page 2

The industrial scenario of economy is highly competitive and constantly

Indian economy is growing at a considerable rate. The growth of GDP in India

The aim of KOTAK MAHINDRA BANK is customization & people cantered

The study of this topic is helpful to me in analyzing customer satisfaction &

NIS ACADEMY, MBA 2010 Page 3

First of all I am thankful to KOTAK MAHINDRA BANK and Branch Manager

NIS ACADEMY, MBA 2010 Page 4

NIS ACADEMY, MBA 2010 Page 5

Executive summary is a term used in business for a short document that

It will usually contain a brief statement of the problem or proposal covered in

An executive summary differs from an abstract in that an abstract will usually

NIS ACADEMY, MBA 2010 Page 6

NIS ACADEMY, MBA 2010 Page 7

The Kotak Mahindra group is a financial organization established in 1985 in

NIS ACADEMY, MBA 2010 Page 8

NIS ACADEMY, MBA 2010 Page 9

NIS ACADEMY, MBA 2010 Page 10

The first phase of financial reforms resulted in the nationalization of 14 major

NIS ACADEMY, MBA 2010 Page 11

NIS ACADEMY, MBA 2010 Page 12

..Private Sector Bank..

 Old generation private banks

The co-operative banking sector has been developed in the

 State Co-operative Banks

NIS ACADEMY, MBA 2010 Page 13

 Industrial Finance Corporation of India (IFCI)

NIS ACADEMY, MBA 2010 Page 14

NIS ACADEMY, MBA 2010 Page 15

NIS ACADEMY, MBA 2010 Page 16

One of the largest economies in the world.

NIS ACADEMY, MBA 2010 Page 17

NIS ACADEMY, MBA 2010 Page 18

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

NIS ACADEMY, MBA 2010 Page 19

NIS ACADEMY, MBA 2010 Page 20

Kotak Mahindra Finance Limited started off with Bill Discounting

The Auto Finance division starts

The brokerage and distribution businesses of the Group gets

Kotak Mahindra Asset Management Company is incepted and they

NIS ACADEMY, MBA 2010 Page 21

Matrix is sold to Friday Corporation and the Insurance Services is

2005 Kotak Group launches a real estate fund

The Group buys 25% stake held by Goldman Sachs in Kotak

THE JOURNEY SO FAR…

NIS ACADEMY, MBA 2010 Page 22

Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment

NIS ACADEMY, MBA 2010 Page 23

….KOTAK MUTUAL FUND....

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak

Kotak Mahindra Old Mutual Life Insurance Limited

NIS ACADEMY, MBA 2010 Page 24

-Madison Communications has won the Rs.30cr Kotak Mahindra's

-RBI has granted license to Kotak Mahindra Finance Ltd to embark on

-Kotak Mahindra Bank has received a lot of interest from portfolio

-Kotak Mahindra Bank has entered into an ATM sharing agreement

-Kotak Mahindra Bank has started its operations in New Delhi by

-Dr.Shankar Acharya has been appointed as the Additional Director to

NIS ACADEMY, MBA 2010 Page 25