Presentation On Kotak mahindra bank

industry profile
Banks are the Financial backbone of economy. A bank is a financial institution that deals with money and credit. From past three decades the Indias banking system has several outstanding achievements to its credit. The first bank in India was established in the year 1786.

Journey of Indian banking system

Phase 1:Early phase from 1786 to 1969. Phase 2:Nationalization of banks up to1991prior to Indian banking sector reforms Phase 3: New phase of Indian banking system with the advent of Indian banking and financial reforms after 1991

Growth of Indian banking assets

Company profile
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. 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.

It has gained a credit rating of p1+ for certificate of deposit and FAAA rating for its fixed deposit.

Pension Fund Restructured JV Bank Life insurance old mutual plc JV

Stock broking Mutual fund Ford credit JV Goldman sachs JV IPO Investment banking Auto finance Trade finance 1985 1986 1990 1991 1992 1995 1996 1998 2001 2003 2006 2008 2009

Nature of business

Vision statement
To establish ourselves as: Global Indian financial service brand The most preferred employer in financial services The most trusted services company Value creation

Mission statement
To consistently provide a full spectrum of intelligent financial choice and be a preferred provider of quality service in our chosen business area

Quality statement
It would serve the customers with: Simplicity: The bank of the future will have simpler products that rely less on derivatives Humility: Financial services should be a business that serves the real world Prudence: Banks should not take on excessive leverage

PRODUCTS
PERSONAL BANKING: savings account term deposits Safe deposit locker loans investments convenience banking car finance cards BUSINESS: business solutions current accounts personal loans CORPORATE BANKING: trade finance retail assets transaction banking

NRI SERVICES: privy league wealth management

Savings account: term deposits:

debit card, online banking, mobile banking, ASBA Overdraft and Re-investment option .

Safe deposit locker: keep safe important documents, jewellery and other valuables. Loans: home loans; personal loans; loan against property; stock ace; loan for home improvement. Investments: mutual funds; Demat; gold eternity; new pension system; insurance; ASBA. convenience banking: net banking; mobile banking; kotak payment gate way; SMS banking; alerts; phone banking; ccc ; ATM; Business banking solution: cater to needs of sme. Provide working capital finance; trade finance; long term loan

Current account:

designed for small and mid size business.

Trade finance:

International - Exports; International - Imports; Bank Guarantee

Retail assets:

Commercial Vehicle Financing; Infrastructure Financing; Tractor and Farm Equipment Financing; Working Capital Financing.

AREA OF OPERATION
Head office: Mumbai Kotak Mahindra Bank has 267 full-fledged bank branches (230 branches as on September 30, 2009) across 154 locations and 585 ATMs as on September 30, 2010. Special ATM sharing arrangement with HDFC Bank provides a network of 1450 ATM's for free transaction. Kotak has offices in London, New York, San Francisco, Singapore, Dubai and Mauritius.

Ownership pattern
Holder's Name Promoters Foreign Institutions General Public Other Companies Foreign Others Financial Institutions N banks Mutual Funds Foreign Ocb Foreign NRI Others No of Shares 335790268 176660791 96329464 40831769 32800000 22708666 20256046 4445763 4408450 2051851 % Share Holding 45.61% 23.99% 13.08% 5.55% 4.45% 3.08% 2.75% 0.60% 0.60% 0.28%

Competitors information
Last Price Market Cap. Net Interest (Rs. cr.) Income ICICI Bank HDFC Bank Axis Bank Kotak Mahindra IndusInd Bank YES BANK Federal Bank Karur Vysya ING Vysya Bank JK Bank 1,065.55 2,094.15 1,287.05 413.60 232.05 269.70 379.15 512.65 319.20 754.05 122,626.69 96,998.00 52,780.44 30,365.46 10,771.67 9,311.39 6,481.36 3,906.90 3,856.97 3,655.47 25,706.93 16,172.91 11,638.02 3,255.62 2,706.99 2,369.71 3,673.23 1,757.94 2,232.90 3,056.88 Net Profit 4,024.98 2,948.69 2,514.53 561.11 350.31 477.74 464.55 336.03 242.22 512.38 Total Assets 363,399.71 222,458.56 180,647.87 37,436.31 35,369.52 36,382.50 43,675.61 21,993.49 33,880.24 42,546.80

Infrastructure
Oracle Application Server Oracle Application Server provides an open, standards-based infrastructure for enterprise application integration and web services integration in a single product. Red Hat Linux, Advance Server 2.1 to run Oracle Application Server. J2EE-based implementation Ensures performance, scalability, and manageability. Bank Customer Information File (BCIF). The IT group at Kotak developed the Bank Customer Information File (BCIF). It is a single sign on window to access all applications. BCIF does not only cater to the internal business needs but is also used for capturing the details of the customer banking relationship, investments etc This gives the complete relationship which customer has with the bank

Infrastructure (CONT.)
SmarTransact Is a mobile transaction software at Kotak Mahindra Bank. Winsoft Technologies, the leading IT solution provider focused on the Financial Domain, has launched this new mobile solution SmarTransact to empower Kotak Mahindra Bank maximize their client returns Intranet facility provides information regarding training and development, manuals/circulars, product notes, rates and changes, information section, FAQS, notification, locator, forms.

Managing the Infrastructure

Kotaks IT team has to ensure that applications are up 24X7, to ensure the timely delivery of information required by both internal and external customers.

BENEFITS OF infrastructure
Centralized control and administration has allowed Kotak to keep administration Cost under control. The internet banking functionality available on Kotaks website utilizes Oracle Application Servers portal functionality. Extremely lightweight and fast J2EE environment provides access to various applications at the backend, at a very high speed. Post implementation of BCIF , Kotak has been able to introduce a Zero Operator Error environment. It has better understanding of its customers. Integration and selfservice has enabled better employee productivity and efficiency. SmarTransact technology platform equips Kotak Bank to achieve a highly flexible customer reach enabling the company to have new business strategies.

AWARDS
IDRBT Banking Technology Excellence Awards Best Bank Award in IT Framework and Governance Among Other Banks' 2009 Banking Technology Award for IT Governance and Value Delivery, 2008 IR Global Rankings Best Corporate Governance Practices - Ranked among the top 5 companies in Asia Pacific, 2009 Finance Asia Best Private Bank in India, for Wealth Management business, 2009 Kotak Royal Signature Credit Card Was chosen "Product of the Year" in a survey conducted by Nielsen in 2009 IBA Banking Technology Awards Best Customer Relationship Achievement - Winner 2008 & 2009 Best overall winner, 2007 Best IT Team of the Year, 4 years in a row from 2006 to 2009 Best IT Security Policies & Practices, 2007

Emerson Uptime Champion Awards Technology Senate Emerson Uptime Championship Award in the BFSI category, 2008 Euro money Best Private Banking Services (overall), 2009 GIREM GIREM awarded Kotak Realty Funds Group, the "Investor of the Year" Award for 2009 IBA Banking Technology Awards Best Use of Business Intelligence - up, 2008 Best Enterprise Risk Management - Runner up, 2008 Hewitt 10th Best Employer in India, 2007, 2008 & 2009 Financial Insights Innovation Award Best Innovation in Enterprise Security Management in the Asia Pacific Region, 2009 Frost & Sullivan Best Passenger Vehicle Finance Company in India, 2006

Work flow diagram

LOAN SANCTION PROCESS

Lender()bank
Customer comes Up with loan proposal Collateral security Financial details Verify the Purpose of the Loan Assess the Credibility of borrower Verifies the proposal Either approves (final sanction) Or rejects

borrower

Regional office

Future growth and prospects:

Acquire a bank with big branch network to multiply the growth potential of Kotak Mahindra Bank. Focus growth in distribution and not product Target of 500 branches by 2012

Structure
Bank has 267 full-fledged bank branches across 154 locations 585 ATMs as on September 30, 2010 regional office located at Ahmadabad, Bangalore, Belapur, Bhopal and so on.

Branch manager

Branch sales manager

Branch operations manager

Deputy manager

Teller

Assistant manager

Service delivery officer Direct banking

Strategy
Increase in the branches. multi channel strategy looking at expanding its ATM network Cross selling by acquiring customers and cross selling product simultaneously. Almost 30 per cent of life insurance business comes out of branches. The quality of service and delivery is as important as adding to the network

Style
top down approach employees are competitive and cooperative Decisions are taken by the management

system
transaction volumes are enormous. Diverse line of business. automated system to identify suspicious transactions. Flexcube application is used to track such transactions.

Skill: mention educational qualification, skills required to do job at each level requirements so on

Staff: no of emloyees, hr related information so on Yet to prepare these ok. System info is wrong. Have to re do.

Shared values
K: knowledgeable and competent O: offers innovative and proactive solutions T: transparent and fair in dealing A: is approachable and warm K: keep things simple

SWOT ANALYSIS
1. STRENGTHS
Professional management Strong technology Well capitalized Well diversified business

2. WEAKNESS
Small size Less Promotional Activities

SWOT ANALYSIS (Cont)

3. OPPORTUNITIES
Low loan and retail penetration Stressed Asset Business Plans to invest Rs. 120 crores over three years for infrastructure, technology and personnel

4. THREATS
Competition Other better Saving, investment option available (like Insurance, Mutual fund, Real-estate, Gold Government Rules And Regulation Decrease in deposits