29607598 Kotak Mahindra Bank Ltd

8/11/2019 29607598 Kotak Mahindra Bank Ltd

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Corporate StrategyDossier.

“ThinkInvestments. Think Kotak”

Benoy Paul JoseCBS.BFS.!!

"#"$#"%



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



( # P a g e



$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



an- (holesale

+ # P a g e



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.





&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.





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@.



2. &ther In-ian private *anks (hi'h 'oul- *e possi*le 'ompetitors

4Mis Bank1 9DFC Bank an- ICICI Bank.

; # P a g e



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.

<= # P a g e



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



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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# P a g e



: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



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.

<" # P a g e



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

<( # P a g e



)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-.



<+ # P a g e



)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





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.



<1 # P a g e



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



early Fe*ruary. By taking an early 'all1 K;B@ (ere a*le to limit its

losses. 4s a proa'tive risk

<4 # P a g e



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



<; # P a g e

29607598 Kotak Mahindra Bank Ltd

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