41681421 kotak-mahindra

Chapter: 1Chapter: 1

Introduction of the studyIntroduction of the study

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Introduction of the study

INVESTMENTS

The Meaning of Investment

The money you earn is partly spent and the rest saved for meeting future expenses.

Instead of keeping the savings idle you may like to use savings in order to get return on

it in the future. This is called Investment.

Reason behind investment:

One needs to invest to:

Earn return on your idle resources

Generate a specified sum of money for a specific goal in life

Make a provision for an uncertain future

One of the important reasons why one needs to invest wisely is to meet the cost of

Inflation.

Remember to look at an investment's 'real' rate of return, which is the return after

inflation. The aim of investments should be to provide a return above the inflation

rate to ensure that the investment does not decrease in value.

Investment is never an easy process. However, a sound understanding of some

basic concepts make the process of investment decision-making much easier

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and the experience much more enjoyable. But investment needs some planning

to do, analysis of some basic needs. Here are some of the basic steps for the

investment.

1) Identify your financial needs and goals.

2) Your ability to take the risk.

3) Estimate your required rate of return.

4) To meet the cost of inflation.

Three golden rules for investment

1) Invest early

2) Invest regularly

3) Invest for long term.

But due to the lack of awareness towards the various financial products peoples

are losing the opportunity to earn on their investment. Even they don’t know how

the value of money is depreciating due to the various factors like inflation.

Interest rates etc.

RETURN ON INVESTMENT

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Return on Investment (ROI) analysis is one of several approaches to building a financial business case. The term means that decision makers evaluate the investment by comparing the magnitude and timing of expected gains to the investment costs.

TYPES OF INVESTMENT:-

There are basically three types of investments from which the investors can choose.

The three kinds of investment have their own risk and return profile and investor will

decide to invest taking into account his own risk appetite. The main types of

investments are: -

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Economic investments:-

These investments refer to the net addition to the capital stock of the society. The

capital stock of the society refers to the investments made in plant, building, land and

machinery which are used for the further production of the goods. This type of

investments are very important for the development of the economy because if the

investment are not made in the plant and machinery the industrial production will come

down and which will bring down the overall growth of the economy.

Financial Investments:-

This type of investments refers to the investments made in the marketable securities which are of tradable nature. It includes the shares, debentures, bonds and units of the mutual funds and any other securities which is covered under the ambit of the Securities Contract Regulations Act definition of the word security. The investments made in the capital market instruments are of vital important for the country economic growth as the stock market index is called as the barometer of the economy.

General Investments:-

These investments refer to the investments made by the common investor in his own

small assets like the television, car, house, motor cycle. These types of investments are

termed as the household investments. Such types of investment are important for the

domestic economy of the country. When the demand in the domestic economy boost

the over all productions and the manufacturing in the industrial sectors also goes up and

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this causes rise in the employment activity and thus boost up the GDP growth rate of

the country. The organizations like the Central Statistical Organization (CSO) regularly

takes the study of the investments made in the household sector which shows that the

level of consumptions in the domestic markets.

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CHARACTERISICS OF INVESTMENT

Certain features characterize all investments. The following are the main characteristics

features if investments: -

1.Return: -

All investments are characterized by the expectation of a return. In fact, investments are

made with the primary objective of deriving a return. The return may be received in the

form of yield plus capital appreciation. The difference between the sale price & the

purchase price is capital appreciation. The dividend or interest received from the

investment is the yield. Different types of investments promise different rates of return.

The return from an investment depends upon the nature of investment, the maturity

period & a host of other factors.

2.Risk: -

Risk is inherent in any investment. The risk may relate to loss of capital, delay in

repayment of capital, nonpayment of interest, or variability of returns. While some

investments like government securities & bank deposits are almost risk less, others are

more risky. The risk of an investment depends on the following factors.

The longer the maturity period, the longer is the risk.

The lower the credit worthiness of the borrower, the higher is the risk .

The risk varies with the nature of investment. Investments in ownership securities like

equity share carry higher risk compared to investments in debt instrument like

debentures & bonds.

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3. Safety: -

The safety of an investment implies the certainty of return of capital without loss of

money or time. Safety is another features which an investors desire for his investments.

Every investor expects to get back his capital on maturity without loss & without delay.

4. Liquidity: -

An investment, which is easily saleable, or marketable without loss of money & without

loss of time is said to possess liquidity. Some investments like company deposits, bank

deposits, P.O. deposits, NSC, NSS etc. are not marketable. Some investment

instrument like preference shares & debentures are marketable, but there are no buyers

in many cases & hence their liquidity is negligible. Equity shares of companies listed on

stock exchanges are easily marketable through the stock exchanges.

An investor generally prefers liquidity for his investment, safety of his funds, a good

return with minimum risk or minimization of risk & maximization of return.

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IMPORTANCE

In the current situation, investment is becomes necessary for everyone & it is

important & useful in the following ways:

1. Retirement planning: -

Investment decision has become significant as people retire between the ages of 55 &

60. Also, the trend shows longer life expectancy. The earning from employment should,

therefore, be calculated in such a manner that a portion should be put away as a

savings. Savings by themselves do not increase wealth; these must be invested in such

a way that the principal & income will be adequate for a greater number of retirement

years. Increase in working population, proper planning for life span & longevity have

ensured the need for balanced investments.

2. Increasing rates of taxation: -

Taxation is one of the crucial factors in any country, which introduce an element of

compulsion, in a person’s saving. In the form investments, there are various forms of

saving outlets in our country, which help in bringing down the tax level by offering

deductions in personal income.

For examples: -

Unit linked insurance plan,

Life insurance,

National saving certificates,

Development bonds,

Post office cumulative deposit schemes etc.

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3. Rates of interest: -

It is also an important aspect for sound investment plan. It varies between investment &

another. This may vary between risky & safe investment, they may also differ due

different benefits schemes offered by the investments. These aspects must be

considered before actually investing. The investor has to include in his portfolio several

kinds of investments stability of interest is as important as receiving high rate of interest.

4. Inflation: -

Since the last decade, now a day’s inflation becomes a continuous problem. In these

years of rising prices, several problems are associated coupled with a falling standard of

living. Before funds are invested, erosion of the resource will have to be carefully

considered in order to make the right choice of investments. The investor will try &

search outlets, which gives him a high rate of return in form of interest to cover any

decrease due to inflation. He will also have to judge whether the interest or return will be

continuous or there is a likelihood of irregularity. Coupled with high rate of interest, he

will have to find an outlet, which will ensure safety of principal. Beside high rate of

interest & safety of principal an investor also has to always bear in mind the taxation

angle, the interest earned through investment should not unduly increase his taxation

burden otherwise; the benefit derived from interest will be compensated by an increase

in taxation.

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5. Income: -

For increasing in employment opportunities in India., investment decisions have

assumed importance. After independence with the stage of development in the country

a number of organization & services came into being.

For example: -

The Indian administrative services,

Banking recruitment services,

Expansion in private corporate sector,

Public sector enterprises,

Establishing of financial institutions, tourism, hotels, and education.

More avenues for investment have led to the ability & willingness of working

people to save & invest their funds.

6. Investment channels: -

The growth & development of country leading to greater economic activity has led to the

introduction of a vast array of investment outlays. Apart from putting aside saving in

savings banks where interest is low, investor have the choice of a variety of

instruments. The question to reason out is which is the most suitable channel? Which

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media will give a balanced growth & stability of return? The investor in his choice of

investment will give a balanced growth & stability of return? The investor in his choice of

investment will have try & achieve a proper mix between high rates of return to reap the

benefits of both.

For example: -

Fixed deposit in corporate sector

Unit trust schemes.

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INVESTMENTS AVENUES:-

There are various investments avenues provided by a country to its people depending

upon the development of the country itself. The developed countries like the USA and

the Japan provide variety of investments as compared to our country. In India before the

post liberalization era there were limited investments avenues available to the people in

which they could invest. With the opening up of the economy the number of

investments avenues have also increased and the quality of the investments have also

improved due to the use of the professional activity of the players involved in this

segment. Today investment is no longer a process of trial and error and it has become a

systematized process, which involves the use of the professional investment solution

provider to play a greater role in the investment process.

Earlier the investments were made without any analysis as the complexity involved the

investment process were not there and also there was no availability of variety of

instruments. But today as the number of investment options have increased and with

the variety of investments options available the investor has to take decision according

to his own risk and return analysis.

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PORTFOLIO

Meaning of portfolio:-

Portfolio

A combination of securities with different risk & return characteristics will constitute the

portfolio of the investor. Thus, a portfolio is the combination of various assets and/or

instruments of investments. The combination may have different features of risk &

return, separate from those of the components. The portfolio is also built up out of the

wealth or income of the investor over a period of time, with a view to suit his risk and

return preference to that of the portfolio that he holds. The portfolio analysis of the risk

and return characteristics of individual securities in the portfolio and changes that may

take place in combination with other securities due to interaction among themselves and

impact of each one of them on others.

An investor considering investments in securities is faced with the problem of choosing

from among a large number of securities. His choice depends upon the risk and return

characteristics of individual securities. He would attempt to choose the most desirable

securities and like to allocate is funds over this group of securities. Again he is faced

with the problem of deciding which securities to hold and how much to invest in each.

The investor faces an infinite number of possible portfolios or groups of securities. The

risk and return characteristics of portfolio differ from those of individual securities

combining to form a portfolio. The investor tries to choose the optimal portfolio taking in

to consideration the risk return characteristics of all possible portfolios.

As the economy and the financial environment keep changing the risk return

characteristics of individual securities as well as portfolios also change. This calls for

periodical review and revision of investment portfolios of investors. An investor invests

his funds in a portfolio expecting to get a good return consistent with the risk that he has

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to bear. The return realized from the portfolio has to be measured and the performance

of the portfolio has to be evaluated.

It is evident that rational investment activity involves creation of an investment portfolio.

Portfolio management comprises all the processes involved in the creation and

maintenance of an investment portfolio. It deals specifically with the security analysis,

portfolio analysis, portfolio selection, portfolio revision and portfolio evaluation. Portfolio

management makes use of analytical techniques of analysis and conceptual theories

regarding rational allocation of funds. Portfolio management is a complex process which

tries to make investment activity more rewarding and less risky.

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Before designing a portfolio one will have to know the intention of the investor or the

returns that the investor is expecting from his investment. This will help in adjusting

the amount of risk. This becomes an important point from the point of view of the

portfolio designer because if the investor will be ready to take more risk at the same

time he will also get more returns.

From the above discussion we can conclude that the investors can be of the

following three types:

1. Investors willing to take minimum risk and at the same time are also expecting

minimum returns.

2. Investors willing to take moderate risk and at the same time are also expecting

moderate returns.

3. Investors willing to take maximum risk and at the same time are also expecting

maximum returns.

PORTFOLIO – AGE RELATIONSHIP

Your age will help you determine what a good mix is / portfolio is

Age Portfoliobelow 30 80% in stocks or mutual funds

10% in cash10% in fixed income

30 t0 40 70% in stocks or mutual funds

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PORTFOLIO DESIGN

10% in cash20% in fixed income

40 to 50 60% in stocks or mutual funds 10% in cash 30% in fixed income

50 to 60 50% in stocks or mutual funds10% in cash40% in fixed income

above 60 40% in stocks or mutual funds 10% in cash 50% in fixed income

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Chapter-3

Research methodology

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RESEARCH METHODOLOGY

Research methodology is the way to systematically solve the research problem.

Research in common refers to a search of knowledge. In fact research is an art of

scientific investigation. According to the advanced learning dictionary, “research is a

careful investigation of inquiry especially for finding”. In it we study the various steps

that are generally adopted by the researcher in study of his research problem along with

logic behind them. It is necessary for the researcher to know the research method and

techniques.

So, research, methodologies adopted by the researchers in this project are as follows:

AREA OF RESEARCH

I have taken Raipur city as a whole as my area of research within in which I have filled

my questionnaires from the peoples of Raipur city including the customers of Kotak

Mahindra Bank ltd.

SAMPLE SIZE:

Sample size is the total number of respondents selected. In my research

work I have taken a sample size of 50 respondents.

SOURCES OF DATA

For assessing the behavior pattern of the customers towards Kotak as an investment

gateway, I have collected the data from both the sources i.e. primary sources and

secondary source.

Primary Source

For this research, I have prepared a questionnaire for collecting the data. I distributed

the questionnaire to the selected investors. On the basis of their feedback, I have done

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the analysis for my report, the items included in the questionnaire where investors

needs of investments and improvement in present system.

Secondary Source

Various books, broachers, company’s website, project reports etc where used as

secondary source.

QUESTIONNAIRE DESIGN

Questionnaire design is a most common instrument. A researcher should avoid bias

and develops a device, which will facilitate effective communication. The questionnaire

considers all these factors can secure relevant facts or opinion from informed and

interested responded. I designed a questionnaire contained like this and conducted the

sample survey. The questionnaire contains fourteen questions helped me in collecting

the relevant data for my project while preparing the questions. I almost gave attention to

the number of questions, types, wording and sequence of question. The questionnaire

contains close-ended question and proper care was taken to minimize ambiguity. In

order to get the information through the questionnaire, I adopted personal interview also

and it helped both the purpose of getting the information, which was mentioned, in the

questionnaire and some vital additional information, which employees expressed while

talking me.

SAMPLING METHOD

The researcher adopted the convenient sampling method. In this method

the sampling unit is chosen primarily on the basis of convenience to the investigators. In

this type of sampling the researcher selects the item for the sample deliberately; his

choice concerning the items remains supreme. In other words, under this sampling

method the organizers of the enquiry purposively choose the particular unit of the

universe for constituting a sample on the basis that the small mass that they select out

of huge ones will be typical or representative of the whole.

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STATISTICAL TECHNIQUES:

Percentage method technique of central tendency was used by researcher in the

analysis of the data in this research. Percentage refers to a special kind of ratio.

Percentage is used in making comparison between two or more series of data.

Percentages are used to describe relationships. Such a measure is considered as the

most representative figure for the entire mass of data.

EXECUTION OF PROJECT:

It is very important step in the research process. According to it findings depends on

how systematically the study has been cased out in the time so that it can make some

sense when required. I have executed the project after prior discussion with the guide

and structure in following steps.

1. preparation of questionnaire

2. Visiting the customers and asking them about the service they all

availing from Kotak Mahindra ltd. Try to find out the satisfaction level

with the existing customers.

TOOLS AND TECHNIQUES OF ANALYSIS

PIECHART:

Pie chart is an alternative to a component bar diagrams, we can represent

various components of a phenomenon by participating a circle.

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BAR DIAGRAM:

Simple Bar diagram the vertical or horizontal to the value of the item, are

constructed. Bar diagrams are particulars suitable for representing individual time series

or partial devices.

.

PERCENTAGE:

It is used to get the percentage value of distributed data

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Chapter-4

Industry profile

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Chapter-5

Company profile

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COMPANY PROFILE

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial organizations, offering a wide range of

financial services 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 diverse financial needs of individuals and corporate.

The group has a net worth of over Rs. 6,799 crore and has a distribution network of

branches, franchisees, representative offices and satellite offices across cities and

towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and

Singapore. The Group services around 6.4 million customer accounts.

Our Corporate Identity

Slogan or Punch line

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Think investment, Think Kotak.

SEGMENTS IN WHICH KOTAK MAHINDRA DEALS

Banking Services

Kotak Mahindra Bank

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, Treasury and Housing Finance.

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank.

KMCC's core business areas include Equity Issuances, Mergers & Acquisitions,

Structured Finance and Advisory Services.

Kotak Securities

Kotak Securities Ltd., is one of India's largest brokerage and securities distribution

house in India. Over the years Kotak Securities has been one of the leading investment

broking houses catering to the needs of both institutional and non-institutional investor

categories with presence all over the country through franchisees and co-coordinators.

Kotak Securities Ltd. offers online and offline services based on well-researched

expertise and financial products to the non-institutional investors.

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Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus

Limited) has been formed with the objective of financing the retail and wholesale trade

of passenger and multi utility vehicles in India. KMP offers customers retail finance for

both new as well as used cars and wholesale finance to dealers in the automobile

trade. KMP continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company 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 25,628

crore 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.

Kotak‘s International Business

With a presence outside India since 1994, the international subsidiaries of Kotak

Mahindra Bank Ltd. operating through offices in London, New York, Dubai, San

Francisco, Singapore and Mauritius specialize in providing asset management services

to specialist overseas investors seeking to invest into India. The offerings are

differentiated India investment solutions that span all major asset classes including

listed equity, private equity and real estate. The subsidiaries also lead manage and

underwrite international issuances of securities. With its commendable track record,

large presence on the ground and a team of dedicated staff in India, Kotak’s

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international arm is suitably positioned for managing assets in the Indian Capital

markets.

MILESTONE

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting

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

1990 The Auto Finance division is started

1991 The Investment Banking Division is started. Takes over FICOM, one of India’s

largest financial retail marketing networks

1992 Enters the Funds Syndication sector

1995 Brokerage and Distribution businesses incorporated into a separate company -

Kotak Securities. Investment Banking division incorporated into a separate

company - Kotak Mahindra Capital Company

1996 The Auto Finance Business is hived off into a separate company - Kotak

Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited).

Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited,

for financing Ford vehicles. The launch of Matrix Information Services Limited

marks the Group’s entry into information distribution.

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

Management Company.

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

Kotak Securities launches its on-line broking site (now

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

setting up of Kotak Mahindra Venture Capital Fund.

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2001 Matrix sold to Friday Corporation

Launches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to a commercial bank – the first Indian

company to do so.

2004 Launches India Growth Fund, a private equity fund.

2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime

(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak

Mahindra.

Launches a real estate fund

2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra CapitalCompany and Kotak Securities

Graphical Representation of Journey So Far

The journey so far

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Group Structure

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* Includes direct and indirect holdings

Group Management

Mr. Uday Kotak (Executive vice chairman & Managing Director).

Mr. Shivaji Dam.Mr. C. Jayaram.Mr. Dipak Gupta.

Board of Directors

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Dr. Shankar Acharya (chairman)

Mr. Uday Kotak (executive vice chairman and Managing Director)

Mr. Anand Mahindra

Mr. K.M. Gherda

Mr. Cyril Shroff

Mr. Pradeep Kotak

Mr. Shivaji Dam

Mr. C. Jayaram (Executive Director)

Mr. Dipak Gupta (Executive Director)

Ms. Bina Chandarana (Secretary & Senior Vice President)

Awards

2009

Kotak Mahindra Bank was awarded Hewitt Best Employers in India 2009

Kotak Mahindra Bank was ranked in the top 5 of companies with “Best Corporate

Governance Practices” in Asia/Pacific - IR Global Rankings 2009

Kotak Mahindra Bank and Oracle Siebel won the “Best CRM/Applications Project

Award 2009” at the IT Implementation Awards 2009 by The Asian Banker

Kotak Mahindra was adjudged India’s overall the “Best Private Banking Services”

award by Euromoney 2009

Kotak Credit Cards- Kotak Royal Signature’s card is chosen “Product of the

Year” by Nielsen who surveyed 40,000 consumers.

Kotak Life Insurance plans were rated amongst the best in the industry for a

second year in a row in the annual ULIP Ranking carried out by Outlook Money.

o Outlook Money awarded the 1st Rank to Kotak Platinum Advantage Plan

in Type II ULIPs category

o Outlook Money awarded 4th Rank to Kotak Long Life Wealth Plus plans in

the Type I ULIPs category, concluding that “Kotak Life has a product

portfolio which delivers what customers want.”

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Kotak Life Insurance plans were rated amongst the best in the industry for a

second year in a row in the annual ULIP Ranking carried out by Outlook Money.

Kotak Securities- Best Brokerage Firm in India - Asiamoney, 2008

Kotak Securities- Selected “Business Superbrand India 2008

Kotak Securities - “India Equity House of the Year 2008” award from IFR Asia

Kotak Securities - “Best Equity House in India” by FinanceAsia in 2008

Kotak Securities - “Best Equity House in India” by Asiamoney in 2008

Kotak Securities - “Best Brokerage and Best Analyst (Sanjeev Prasad) in India”

in the Asiamoney 2008 Brokers Poll

Kotak Investment Banking was awarded the “Best Domestic Investment Bank

2008” by Triple A Asset Asian Awards

Kotak Investment Banking was ranked “Best Investment Bank in India” by Global

Finance in 2008

Kotak Mutual Fund:

o Kotak Liquid – Regular Plan has been ranked as a Seven Star Fund in the

category of “Open-Ended Liquid” schemes for its 1 year performance till

December 31, 2008- ICRA Online Limited

o Kotak Flexi Debt Fund has been ranked as a Five Star Fund in the

category of “Open-Ended Liquid Plus” schemes for its 1 year performance

till 31 December 2008 - ICRA Online Limited

o Kotak Flexi Debt Fund has been ranked as a Five Star Fund in the

category of “Open-Ended Liquid Plus” schemes for it’s 3 year performance

till 31 December 2008 - ICRA Online Limited

o Kotak 30 has been ranked as a Five Star Fund in the category of “Open

Diversified Equity- Defensive” for its 3 year performance- ICRA Online

Limited. The Five Star category comprises of funds in the top 10 percentile

in performance.

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Kotak Investment Banking was named “Best Investment Bank” and “Best Equity

House in India” by FinanceAsia Best Bank Awards 2008 and was named “Best

Domestic Equity House” by Asia Money Best Bank Awards 2008.

Awarded the Best Domestic Investment Bank and the Best Equity House in The

Asset Triple A Country Awards for the period October 1, 2007 to September 30,

2008.

2008

Kotak Investment Bank was awarded the “Best Investment Bank” in the domestic

category in India by Finance Asia for the second year in a row.

Kotak Mutual Fund-Kotak Bond Short Term won ICRA Mutual Fund Gold Award

in the short term Debt category for 1 year & 3 year – 2008

Kotak Securities was awarded the leading Equity house in India for 2007 by

Thomson Extel Survey Awards for Asia Pacific.

Kotak Mahindra Bank was awarded as Best Security Strategist by Microsoft India

and Best IT Implementation for Information security by PCQUEST

Kotak Securities- Best Brokerage Firm in India - Asiamoney, 2007

Kotak Bank emerged in top 3 in 23 categories, including No.1 in 11 categories in

the Euromoney Private Banking Poll 2008.

Kotak Mahindra Bank IT team got 4 awards (including Best IT Team of the year

for the 3rd consecutive year, at the annual BANKING Technology Awards 2008.

Kotak Investment Banking for CY2007 was ranked no 1 by India Advisory

Partners for Mergers & Acquisitions

Kotak Mutual Fund was adjudged as the’ best debt fund house’ and was

awarded ‘wealth creator award’ at Outlook Money NDTV Profit 2007 awards

Kotak Securities was awarded the Avaya Global Connect Customer

Responsiveness Awards in Financial Service Sector, 2007

Kotak Securities was awarded Best Performing Equity Broker in India - CNBC TV

18" – Optimix Financial Advisory Awards, 2008

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Kotak Mahindra Bank was in the Top 5 for Corporate Governance amongst

companies by technical criteria by IR Global Rankings 2008 for the Asia Pacific /

Africa region.

Kotak’s Investor Relation website was adjudged the most voted company in Asia

Pacific / Africa by IR Global Rankings 2008 in five categories; Corporate

Governance Practices, Financial Disclosure Procedures, IR Team, IR Program

and IR Website.

Housing Finance Division of the Bank won the award for “Best in Customer

Information and Responsiveness” among all HFI’s and Banks in the award

hosted by Maharashtra Chamber of Housing Industry (MCHI).

Kotak Investment Banking was ranked No. 1 for FY08 by Prime Database for two

league tables (a) India Domestic IPOs, (b) Qualified Institutional Placements

including Government Divestments.

Kotak Mutual Fund’s three equity schemes (Kotak 30, Kotak Opportunities and

Kotak Balance) have been ranked CPR 1 by CRISIL for Q4 FY08.

2007

Kotak Mahindra Bank IT team got 6 awards (including Best IT Team of the year

for the 2nd consecutive year, Best overall winner), organized by IBA in

recognition of achievements in Banking Technologies.

Kotak Securities was ranked The Most Customer Responsive Company for 2007

(Category - Financial Services) by Avaya Globalconnect

Adjudged the “best debt fund house” and was awarded “wealth creator award” at

Outlook Money NDTV Profit 2007 awards

Emerged in top 3 in 23 categories, including No. 1 in 11 categories in the

Euromoney Private Banking Survey Poll for 2008

Topped the Asiamoney Brokers Poll as the Best Brokerage firm in India in 2007

Bank was awarded as Best Security Strategist by Microsoft India and Best IT

Implementation for Information security by PCQUEST

Awarded the leading Equity house in India for 2007 by Thomson Extel Survey

Awards for Asia Pacific

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Awarded the 10th Best Employer in the recently conducted Hewitt’s Best

Employers in India 2007 Study

Best Investment Bank in India by Finance Asia

Most Popular Investor Relation Website for the Asia/Pacific Region conducted by

IR Global Rankings

Emerged winner in 16 categories in the Euromoney Private Banking Poll 2007,

including the Best local Private Bank

2006

Emerged in top 2 in 6 categories, including No 1 in 3 categories and "IT Team of

the Year" award at the annual Banking Technology Awards 2007

Runner’s up in the “Best Payments Initiative” category at the annual Banking

Technology Awards 2006

Kotak Securities was ranked The Most Customer Responsive Company for 2006

(Category - Financial Services) by Avaya Globalconnect

Awarded the Best Domestic Investment Bank and the Best Equity House in The

Asset Triple A Country Awards

Awarded Voice of Customers Award for the Best Passenger Vehicle Finance

Company in India in 2006 by Frost & Sullivan

Winner in 33 categories in the Asiamoney Private Banking Poll 2006 including

the Best Private Bank award in Southern Asia

Ranked no. 1 in six categories in the Annual Euromoney Private Banking Survey

Poll for 2006 for India


Ranked # 1 in the league table for Book runner/ Lead Manager in public equity

offerings in terms of the value of transactions completed during fiscal 2006

according to Prime Database

Best Broker in India by Finance Asia

Topped the Asiamoney 2006 Brokers Poll as the Best Local Broker

Adjudged the best Mutual Fund House in the NDTV Business Leadership Award

2006

IIMT Page 36

Best Bond Fund Group over Three Years by Lipper Fund Awards India

Ranked the best debt fund over 5 years by Lipper for the Kotak Bond Regular

Plan

Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for the

'Kotak Bond Regular Plan'

2005

Ranked as the top mergers & acquisitions advisor in India in terms of the value of

mergers & acquisitions deals announced from January to December 2005,

according to Bloomberg

Topped the India Advisory Partners Indata League table in terms of the value of

deals announced for the calendar year 2005




Best Broker in India by Finance Asia

Best Equity House in India by Euromoney

2004





Best Investment Bank in India by Global Finance

India's Best Equity House in India by Finance Asia


Best Equity House in India by Asiamoney

Best India Equity House by IFR

2003

IIMT Page 37



offerings in terms of the value of transactions completed during fiscal 2003,



Best Equity House in India by Asiamoney

IIMT Page 38

ABOUT “KOTAK MAHINDRA BANK LTD.”

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance

Limited. Uday Kotak, Sidney A. A. Pinto and Kotak & Company promoted this company.

Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that is

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 launch its banking business. Kotak Mahindra Finance Ltd. is the first finance

company in Indian banking history to convert to a bank. Since then it has been a steady

and confident journey to growth and success.

Recently, Kotak Mahindra Bank Ltd and HDFC Bank have signed a Memorandum of

Understanding to share their ATM network. This agreement will give customers of the

two banks access to over 1400 ATMs across the country. The bank has the presence of

commercial vehicles, retail finance, corporate banking, treasury and housing finance.

IIMT Page 39

KOTAK MAHINDRA BANK LIMITED (CONSOLIDATED)

Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021

UNAUDITED FINANCIAL RESULTS FOR THE PERIOD APRIL TO JUNE, 2009

Rs lakhs

Sr No

ParticularsQuarter Ended

Year Ended

June-09 (Unaudited)

June-08 (Unaudited)

March-09 (Audited)

1 Interest earned (a+b+c+d) 106,273.13 104,190.41 436,656.34

(a) Interest/discount on advances/bills 83,036.39 81,827.86 350,545.90

(b) Income on investments 22,168.48 19,040.74 75,957.73

(c) Interest on balances with RBI & other banks 221.32 1,944.09 5,621.68

(d) Others 846.94 1,377.72 4,531.03

2 Other income (a+b) 128,252.36 44,534.31 288,261.42

(a) Profit/(Loss) on sale of investments including revaluation (insurance business)

41,623.36 (25,547.04) (51,812.66)

(b) Other income (see Notes 1 and 5) 86,629.00 70,081.35 340,074.08

3 Total income (1+2) 234,525.49 148,724.72 724,917.76

4 Interest expended 43,767.43 46,582.56 199,239.47

5 Operating expenses (a+b+c) 133,721.04 74,755.49 391,078.64

(a) Payments to and provisions for employees 28,266.26 31,868.02 119,251.05

(b) Policy holders’ reserves, surrender expense and claims

76,070.89 4,457.54 113,946.90

(c) Other operating expenses (see Note 2 and 5) 29,383.89 38,429.93 157,880.69

6Total expenditure (4+5) (excluding provisions and

contingencies)177,488.47 121,338.05 590,318.11

7Operating Profit before provisions and

contingencies (3-6)57,037.02 27,386.67 134,599.65

8Provisions (other than tax) and contingencies (see Note

3)19,079.76 4,124.71 32,979.46

9 Exceptional items - - -

10 Profit from ordinary activities before tax (7-8-9) 37,957.26 23,261.96 101,620.19

IIMT Page 40

11 Tax expense 10,699.49 9,329.78 36,352.98

12Profit from ordinary activities after tax before

Minority Interest (10 – 11)27,257.77 13,932.18 65,267.21

13 Extraordinary items (net of tax expense) - - -

14Profit from ordinary activities after tax before

Minority Interest (12 – 13)27,257.77 13,932.18 65,267.21

15 Less: Share of Minority Interest 28.99 (1,034.06) 372.83

16 Add: Share in Profit of associates (1,500.15) 18.67 344.25

17 Profit after tax (14-15+16) 25,728.63 14,984.91 65,238.63

18Paid Up Equity Capital - (Face Value of Rs. 10 per

share)34,629.83 34,504.77 34,566.89

19 Group Reserves (excluding Minority Interest) 617,687.52

20 Minority Interest 6,286.02

21 Analytical Ratios

(i) Earnings per Share (before and after extraordinary items)

(a) Basic (not annualized) Rs. 7.44 4.35 18.9

(b) Diluted (not annualized) Rs. 7.41 4.29 18.87

(ii) NPA Ratios

(a) Gross NPA 108,447.80 65,398.10 83,208.43

(b) Net NPA 66,791.12 40,520.10 45,430.59

(c) % of Gross NPA/ Gross Advances 4.58 2.79 3.64

(d) % of Net NPA/ Net Advances 2.87 1.75 2.02

(e) % of Gross NPA/ Gross Advances (excluding NPAs acquired from other banks/ NBFCs)

3.41 1.15 2.44

(f) % of Net NPA/ Net Advances (excluding NPAs acquired from other banks/ NBFCs)

2.07 0.47 1.18

(iii) Return on Assets (average) (not annualised) 0.61 0.37 1.61

IIMT Page 41

NOTES:

1. Details of other income forming part of the Consolidated unaudited results are as follows:

Rs lakhs


Year Ended

June-09 (Unaudited)

June-08 (Unaudited)

March-09 (Audited)

Commission, fees, exchange and brokerage 29,985.33 28,913.82 103,406.75

Premium on insurance business 42,682.85 39,243.43 230,709.63

Profit on sale of investments incl. revaluation (other than insurance business)

10,353.93 3,876.55 (8,011.18)

Others 3,606.89 9,244.33 13,968.88

Total – Other income 86,629.00 70,081.35 340,074.082. Details of other expenditure forming part of Consolidated unaudited results are as follows:

Rs lakhs


Year Ended

June-09 (Unaudited)

June-08 (Unaudited)

March-09 (Audited)

Brokerage 3,794.02 6,537.76 28,244.66

Depreciation 3,320.06 2,928.08 12,593.23

Rent, taxes and lighting 5,765.39 5,158.69 22,085.27

Others 16,504.42 23,805.40 94,957.53

Total – Other operating expenses 29,383.89 38,429.93 157,880.69 3. Provisions and contingencies are net of recoveries made against accounts which have been

written off as bad in the previous year/s.

4. The consolidated financial results are prepared in accordance with Accounting Standard – 21, “Consolidated Financial Statements “ and ( AS ) - 23 “ Accounting for investment in associates in

consolidated financial statement “ issued by The Institute of Chartered Accountants of India.

5. Other income in the consolidated results for the reporting periods is net of sub-brokerage paid in the broking subsidiary amounting to Rs. 1,520.76 lakhs for the quarter ended 30th June, 2009 (Rs.

1,089.68 lakhs for the quarter ended 30th June, 2008), for year ended 31st March, 2009 Rs. 3,772.46 lakhs.

IIMT Page 42

6. Figures for the previous period/ year have been regrouped wherever necessary to conform to current period / year presentation.

KOTAK MAHINDRA BANK LIMITED (STANDALONE)

Registered Office: 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai 400 021

Unaudited Financial result for the period ended 30 June 2009

Rs lakhs

Sr No

ParticularsQuarter Ended Year Ended

Jun-09 (Unaudited)

Jun-08 (Unaudited)

Mar-09(Audited)

1 Interest earned (a+b+c+d) 76,730.23 71,246.77 306,514.40

(a) Interest/ discount on advances/ bills 60,973.56 56,444.10 249,372.58

(b) Income on investments 15,718.70 14,511.02 55,840.38

(c) Interest on balances with RBI & other banks 20.42 250.08 1,172.35

(d) Others 17.55 41.57 129.09

2 Other income 12,692.90 8,312.61 35,786.26

3 Total income (1+2) 89,423.13 79,559.38 342,300.66

4 Interest expended 35,832.13 36,000.07 154,659.75

5 Operating expenses (a+b) 25,161.63 31,200.96 119,642.29

(a) Payments to and provisions for employees 12,120.11 15,206.21 55,683.48

(b) Other Operating expenses 13,041.52 15,994.75 63,958.81

6Total expenditure before provisions &

contingencies (4+5)60,993.76 67,201.03 274,302.04

7 Operating Profit (3-6) 28,429.37 12,358.35 67,998.62

8 Other provisions & contingencies (See Note 1) 15,741.72 4,169.85 25,392.88

9 Exceptional items - - -

10Profit / Loss from ordinary activities before tax

(7-8-9)12,687.65 8,188.50 42,605.74

11 Provision for taxes 3,656.54 2,735.34 14,996.02

12Net Profit / Loss from Ordinary Activities after

tax (10-11)9,031.11 5,453.16 27,609.72

13 Extraordinary items (net of tax expense) - - -

14 Net Profit / Loss for the Period (12-13) 9,031.11 5,453.16 27,609.72

15 Paid Up Equity Capital - (Face Value Rs. 10 per 34,629.83 34,504.77 34,566.89

IIMT Page 43

share)

16 Reserves excluding revaluation reserves 346,794.90

17 Analytical Ratios

(i) % of shares held by Govt. of India - - -

(ii) % Capital adequacy ratio (See Note 3) 18.57 18.58 20.01

(iii) Earnings Per Share (EPS) for the period

- Basic Rs. 2.61 1.58 8

- Diluted Rs. 2.6 1.56 7.99

(iv) NPA Ratios

(a) Gross NPA 86,996.71 52,659.43 73,071.09

(b) Net NPA 52,910.20 31,637.34 39,684.20

(c) % of Gross NPA to Gross Advances 4.95 3.17 4.31

(d) % of Net NPA to net Advances 3.07 1.93 2.39

(e) % of Gross NPA to Gross Advances (excluding NPAs acquired from other banks and NBFCs)

3.38 1.34 2.7

(f) % of Net NPA to net Advances (excluding NPAs acquired from other banks and NBFCs)

1.98 0.57 1.26

(g) Return on Assets %(average) - Not Annualized 0.3 0.21 1.03

18 Public Shareholding

(i) No. of shares 178,445,597 161,642,329 164,556,059

(ii) % of shareholding 51.54 46.85 47.62

19 Promoters and promoter group shareholding

a) Pledged/encumbered

- Number of shares 50,000 50,000

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

0.03% 0.03%

- Percentage of shares (as a% of the total share capital of the company)

0.01% 0.01%

b) Non-encumbered

- Number of shares 167,793,544 181,053,669

- Percentage of shares (as a% of the total shareholding of promoter and promoter group)

99.97% 99.97%

- Percentage of shares (as a % of the total share capital of the company)

48.45% 52.38%

IIMT Page 44

Segment Results

The reportable segments of the bank are as under:

Segment Principal activity

Treasury and BMUMoney market, forex market, derivatives, investments and primary

dealership of government securities and Balance Sheet Management Unit (BMU) responsible for Asset Liability Management.

Retail BankingIncludes lending, deposit taking and other services/ products including

credit cards.

Corporate/Wholesale BankingWholesale borrowings and lendings and other related services to the

corporate sector which are not included under retail banking.

Sr No

Particulars

Quarter EndedYear

Ended

30th June, 2009

(Unaudited)

30th June, 2008

(Unaudited)

31st March, 2009

(Audited)

1 Segment Revenue

a. Treasury and BMU 25,272.74 18,310.81 91,744.55

b. Corporate/ Wholesale Banking 22,658.08 24,225.83 88,793.21

c. Retail Banking 67,390.57 62,755.65 275,219.05

Sub-total 115,321.39 105,292.29 455,756.81

Less : Inter-segmental revenue 25,898.26 25,732.91 113,471.09

Add : Unallocated Income - - 14.94

Total 89,423.13 79,559.38 342,300.66

2 Segment Results

a. Treasury and BMU 8,852.67 275.58 12,928.58


c. Retail Banking (1,863.63) 891.22 7,127.90

Sub-total 12,687.65 8,188.50 42,590.80

Add : Unallocated Income - - 14.94

Total Profit Before Tax 12,687.65 8,188.50 42,605.74

3Capital employed (Segmental Assets less

Segmental Liabilities)

a. Treasury and BMU 147,730.22 128,259.35 124,493.33


IIMT Page 45

c. Retail Banking 153,683.43 142,564.11 152,686.44

d. Unallocated 5,619.29 4,348.22 5,485.61

Sub-total 393,535.22 360,041.14 381,361.79Notes

1. Provisions and contingencies are net of recoveries made against accounts which have been written off as bad in the previous period/ year.

2. Stock options aggregating to 6.29 lakhs were exercised by the employees during the quarter and 110.35 lakhs stock options were outstanding with employees of the Bank and its

subsidiaries as at 30th June, 2009.

3. The Bank has adopted Basel II framework as of 31st March 2009. Accordingly the Capital Adequacy Ratio (CAR) as at 30th June, 2009 and as at 31st March, 2009 is as per Basel II

framework and as at 30th June, 2008 is as per the Basel I framework.

4. The Bank had no outstanding shareholder complaints as at 31st March, 2009. During the quarter the Bank received 12 complaints from shareholders. All shareholder complaints have been resolved

and there are no pending complaints as at 30th June, 2009.

5. Figures for the previous period/year have been regrouped wherever necessary to conform to current period / year presentation.

6. There has been no change in significant accounting policies during the quarter.

7. The results for the quarter ended 30th June 2009 have been subjected to a “limited review” by the statutory auditors of the bank.

MAJOR COMPETITORS

IIMT Page 46

Indian govt sector banks:

State Bank of India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Central Bank of India

Punjab national Bank

Oriental Bank of commerce

Old generation private sector banks

Federal Bank

Karnataka Bank

New generation private sector banks

HDFC Bank

ICICI Bank

Axis Bank

IDBI Bank

Foreign banks

HSBC

Standard Chartered Bank

IIMT Page 47

Distribution companies

NBFC’s:

Fulltron India

Cholamandalam

Future money

Tata finance

Dukes finance

Muthoot finance

IIMT Page 48

OBJECTIVE OF THE STUDY

To find out the individual requirements of investors-customers.

To analyze whether customers are aware of & utilizing the product and services

provided by Kotak.

To access whether the investment account of Kotak is beneficial and helping the

customers to increase their wealth.

To properly track the wealth creation products & being advised to the correct

target segment/audience.

To find whether customers are satisfied with Kotak as an investment destination.

IIMT Page 49

INVESTMENT AVENUES OFFERED BY KOTAK

Mutual Funds:

A mutual fund is a professionally managed firm of collective investments that collects

money from many investors and puts it in stocks, bonds, short-term money market

instruments, and/or other securities. The fund manager, also known as portfolio

manager, invests and trades the fund's underlying securities, realizing capital gains or

losses and passing any proceeds to the individual investors. There is a variety of mutual

funds.

There are debt funds that invest only in bonds. Thus the returns they get are more of

less similar to the returns from a fixed deposit. They usually invest in bonds with higher

ratings and thus are safe to a great degree.

There are equity funds that invest only in stocks. Stocks carry higher risk and probability

of higher returns. Hybrid funds / balanced funds invest in equity as well as debt. Money

market funds invest in short term investments such as treasury bills, certificates of

deposit, commercial paper, inter-bank call money, government securities etc. These are

best suited for people who have a large sum of money to invest for a short time with

minimum risk.

Kotak Private Equity Kotak Private Equity Group (KPEG) is a specialist

Private Equity arm of Kotak Mahindra Group. It is a leading Private Equity Fund

Manager focused on helping emerging corporate and mid-size enterprises evolve

into tomorrow's industry leaders. KPEG provides these companies a combination

of equity capital, strategic support and other value added services, playing a pro-

active role with the entrepreneur in building the business.

IIMT Page 50

It invest in companies across a broad range of industries seeking capital for business

expansions, acquisition financing and buyout transactions. The size of their initial

investment is typically between USD 15mn and 40mn depending on the nature of the

company's business, stage of growth and its financing requirements. It also lead

transactions greater than USD 40mn through co-investment from our reputed Limited

Partners, Kotak’s international relationships and/or other Private Equity Funds.

While the Kotak Group has been associated with Private Equity investments since

1997, to bring a sharper focus to the Group's Alternate Assets strategy, Kotak Mahindra

Bank initiated its first structured third party Private Equity Fund in early 2005. Since

then, the Alternate Assets business of the Group has grown to around USD 1.4 billion

under management across two asset classes namely – Private Equity & Real Estate,

both led by independent investment teams.

The Alternate Assets business currently consisting of Private Equity and Real Estate

has since been restructured under Kotak Investment Advisors Ltd (“KIAL”), a subsidiary

of Kotak Mahindra Bank, set up to focus on managing the Alternate Assets business of

the Kotak Group. As part of KIAL, KPEG currently manages / advises two funds across

two strategies – Growth Capital (India Growth Fund) and Venture Capital for Life

Sciences.

Kotak Reality Fund

Kotak Realty Funds Group (KRFG) is a division of Kotak Investment Advisors Ltd

(KIAL) that focuses on Real Estate Investment opportunities. Established in May

2005, it is one of India's first private equity funds with a focus on real estate and

real estate intensive businesses It actively considers investment opportunities

with the local developers and projects in the residential, commercial and other

real estate sectors.

IIMT Page 51

Kotak Realty Funds Group (KRFG) plans to opportunistically invest in and add value to

Portfolio Investments across a broad spectrum of real estate sectors and geographies.

Its investment objective is to produce long-term capital appreciation for investors by

providing capital to real estate-related projects and companies across India. Kotak

Realty Funds Group (KRFG) will seek to invest in opportunities that are best positioned

to capitalize on the positive economic impact of forces driving Indian real estate,

including:

Long-term property enhancement driven by development of urban infrastructure

such as new airports, mass transit systems, intra-city expressways and national

events such as the Commonwealth Games 2010

Increased off shoring by international companies

Demographic shifts stimulating home ownership

Robust consumer spending favoring organized retail

Institutionalization of property markets

Inflow of foreign business travelers and tourists

Large cohort of well-educated technical workers and expansion of the middle

class

Proliferation of financial services to the retail market

INSURANCE:

Insurance is a form of risk management primarily used to hedge against the risk of a

contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from

one entity to another, in exchange for a premium. An insurer is a company selling the

insurance. The insurance rate is a factor used to determine the amount, called the

premium, to be charged for a certain amount of insurance coverage. Risk management,

the practice of appraising and controlling risk, has evolved as a discrete field of study

and practice.

IIMT Page 52

As an insurance broker, Kotak provides following insurance product to its client:

1) Kotak Smart Advantage optimizes the return on your premiums paid through a

smart mix of assured additions and 100% premium allocation. Your first year’s premium

contributes towards guaranteeing you an Assured Addition Advantage that boosts your

fund value at regular intervals throughout the term of the policy. The longer your

premium paying term, the higher will be the value of the advantage. The Assured

Addition Advantage is a powerful combination of two benefits:

A. Fixed Advantage

The Fixed Advantage benefit is an assured value guaranteed at the end of your

premium payment term. This benefit is calculated as a percentage of your first year

premium depending on the premium payment term chosen, provided your policy is in

force and all premiums are fully paid up to date.

Premium Payment Term 3 or 5 years 10 years 15 years 20 years 25 years 30 years.

Fixed Advantage Benefit (as a percentage of First Year Premium) 100% 110% 135%

175% 225% 275%.

B. Dynamic Advantage

The Dynamic Advantage benefit is an assured bonus addition credited to your fund

value at the end of every 10th, 15th, 20th, 25th and 30th policy year. This benefit will be

calculated as a percentage of the average value of funds in the three years preceding

the benefit allocation, provided your policy is in force and all premiums are fully paid up

to date.

At the end of Policy Year 10 years 15 years 20 years 25 years 30 years.

Dynamic Advantage Benefit (as a percentage of average fund value in the last three

years) 1.10% 1.35% 1.75% 2.25% 2.75%.

IIMT Page 53

2) Kotak Flexi plan. : Kotak flexi plan is another ideal option if you want a

comprehensive long-term solution for managing your financers. You want insurance to

be an important part of portfolio to protect your love ones. You think that financial

concepts require lot of time to grasp and are probably best left to the experts.

How does this Plan work?

Decide the amount of savings (premium) one should make each year.

Decide the term of policy depending on the goals that one have in mind.

Choose the fund option to balance one’s risk profile and tenure of investment.

Opt for any of the optional rider benefits to enhance flexibility and boost the life style

benefits of one’s plan.

Key Features:

InvestmentOption

Equity(high risk)

Debt(medium risk)

Cash and money market (low risk)

Risk return profile

Objective

AggressiveGrowthGuaranteed / dynamicGrowth

60%-100%

40%-80%

0%-40%

20%-60%

0%

0%-20%

AggressiveHigh risk high return.

Downside risk

Guaranteed / dynamicBalanced

30%-60% 20%-70% 0%-20% ModerateMedium growth through diversified investment

Dynamic bond-

0%-100% 0%-20% SafeLow risk and fixed return

Dynamic gilt-

80%-100% 0%-20% SafePreserved capital and low risk

IIMT Page 54

Term deposits

Invest in Kotak Bank Term Deposit. We offer attractive returns on term deposits and

investing in them is really simple and convenient.

Features & Benefits

Ease and convenience of operation Not a Kotak Bank customer and wish to apply for

term deposit, online. For the first time in India, New To Bank customer can also apply

online for term deposit.

If you are an existing customer, you can place a term deposit through Phone Banking or

Net Banking. What's more, you can even renew this deposit by placing an instruction

over phone. Needless to mention, he can do all this and more by walking across into

any of our branches.

Liquidity through overdraft or sweep-in facility. Your deposit will be available to you

should you need them in case of an emergency. You can avail upto 85% overdraft

against your term by paying 2% above your deposit rate. This facility is available for

deposits above Rs.50,000 for a tenure of 181 days or more. You can also choose to link

your term deposit to your savings / current account, whereby if need be, your term

deposit will automatically be encased to meet your withdrawal requirement.

No penalty on pre-mature encashment in case your term deposit is pre-maturely

enchased, you will earn interest at the rate prevailing on the date of deposit for the

withdrawn amount.

Demat/Equity:

Kotak Mahindra provides end-to-end equity solutions to institutional and individual

investors. Consistent delivery of high quality advice on individual socks, Sectors trends

and investment strategy has established us a competent and reliable unity across the

country.

IIMT Page 55

Client can trade through us online on BSE and NSE for both equities and derivatives.

They are supported by dedicated sales and trading teams in our trading desk across the

country .research and investment ideas can be accessed by clients either through their

designated dealers, email, web or SMS.

Gold as an investment:

Gold is the oldest currency in the world and is coveted across continents and cultures

for a variety of reasons.

Maintains long-term value Market cycles have their ups and downs, but gold has

maintained its long-term value. Paper currencies may rise and fall but gold

always endures. Gold has demonstrated its capacity to store value for centuries

Safe refuge during times of calamities like war or economic crisis, there may be a

negative effect on investments like currencies, bonds and equities, but may have

an opposite effect on the value of gold. Also gold is not a liability of any

government or corporation and hence it does not run a risk of becoming

worthless due to unexpected events.

Inflation Hedge The value of gold, in terms of real goods and services that it can

buy, has remained remarkably stable whereas the purchasing power of many

currencies has generally declined

Helps build a robust portfolio adding gold to a portfolio introduces an entirely

different asset class. Portfolios that contain gold are generally more robust and

better able to cope with market uncertainties than those, which don't. Recent

independent studies have shown that traditional diversifiers (such as bonds and

alternative assets) often fail during times of market stress or instability. Even a

small allocation of gold has been proven to significantly improve the consistency

of portfolio performance during both stable and unstable financial periods.

Effective Diversifier diverse investments help protects the portfolio against

fluctuations in the value of any single asset class. Gold is an excellent portfolio

diversifier because its performance tends to move independently of other

investments and key economic factors.

IIMT Page 56

Both tangible and liquid Gold is an asset that is both tangible and liquid, unlike

real estate, which is tangible but not liquid, or company shares and bonds, which

are liquid but not tangible.

IIMT Page 57

IIMT Page 58

CHAPTER 3

ANALYSIS AND INTERPRETATION OF DATA

GENDER OF RESPONDENTS

MALE 38

IIMT Page 59

FEMALE 12

76%

24%

GENDER OF RESPONDENTSMALE FEMALE

Analysis:

Among all respondents 76 % are male and 24 % are female. Therefore female

respondents are less in responding to the investment options.

AGE OF RESPONDENTS

IIMT Page 60

Age No. of Respondents20-30 930-40 1540-50 1050-60 14

Above 60 2

18%

30%

20%

28%

4%

No. of Respondents20-30 30-40 40-50 50-60 Above 60

Analysis:

The most of the respondents from the age group 30-40 are more interested in

investments.

IIMT Page 61

OCCUPATION OF THE RESPONDENTS:

OCCUPATION NO OF RESPONDENTS

SERVICE 19

BUSINESS 12

SELF EMPLOYED 11

PROFESSIONAL 8

38%

25%

23%

15%

OccupationService Business Self Employed Professional

Analysis:

Service class is keener to make investment and professionals are least concerned with

investment.

IIMT Page 62

ANNUAL INCOME OF THE RESPONDENTS:

Annual income No of respondents

2-5 lakhs 25

5-10 lakhs 11

10-15 lakhs 9

Above 15 lakhs 5

50%

18%

23%

10%

Annual Income2-5 Lakhs 5-10 Lakhs 10-15 Lakhs Above 15 Lakhs

Analysis:

Persons with Annual income of 2-5 lakhs are more attracted to savings as to make

future consumptions with maximum 50 % than other income earners.

IIMT Page 63

MEMBERS IN YOUR FAMILY

Members No of respondents

1-3 6

4-6 27

7-10 13

More than 10 4

13%

55%

25%

8%

No. of Family Members1-3 4-6 7-10 More than 10

Analysis:

Maximum respondents are from family of 4-6 members with 55 % share.

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INVESTMENTS

Product No. of Respondents

Kotak Gold Eternity 5

Kotak Trinity 8

Kotak Mutual Fund 15

Kotak Life Insurance 9

Kotak Reality Fund 3

13%

20%

38%

23%8%

InvestmentsKotak Gold Eternity Kotak Trinity Kotak Mutual FundKotak Life Insurance Kotak Reality Fund

Analysis:

People are more interested in investing in mutual funds than other products of Kotak.

AMOUNT INVESTED:

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Amount No of respondents

Less than 50,000 12

50,000-1,00,000 24

1,00,000-5,00,000 8

More than 5,00,000 6

24%

48%

16%

12%

Amount of InvestmentLess than 50,000 50,000-1,00,000 1,00,000-5,00,000 More than 5,00,000

Analysis:

The amount of investment made is more in 50,000-1,00,000 range i.e. 48 %.

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HOLDING PERIOD OF INVESTMENT:

Period No of respondents

Less than 1 year 8

1-5 years 23

5-10 years 14

1-15 years 5

16%

46%

28%

10%

Period of InvestmentLess than 1 year 1-5 years 5-10 years 10-15 years

Analysis:

The period of investment for 46 % respondents is 1-5 years and less people are

interested in investing for 10- 15 years.

PURPOSE OF INVESTMENT

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Purpose No of respondents

Rate of return 20

Safety 9

Risk factor 6

Tax benefit 15

Rate of return Safety Risk factor Tax benefit

20

9

6

15

Purpose of InvestmentPurpose of Investment

Analysis:

The purpose for investment for most of the respondents is for better rate of return and

risk factor is less important for them.

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RISK TOLERANCE:

Risk Tolerance No of respondentsHigh 15

Medium 25low 10

30%

50%

20%

Risk TolerenceHigh Medium Low

Analysis:

50 % of the respondents are medium risk taker and 30 % of the respondents are high

risk taker and 20 % of the respondents are low risk taker.

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EXPECTED RATE OF RETURN

Expected return No of respondents

5-10% 13

10-15% 17

15-10% 12

More than 20% 8

5-10 % 10-15 % 15-20 % More than 20 %

13

17

12

8

Expected rate of returnExpected rate of return

Analysis:

Respondents with expected return of 10-15 % are 17 and more than 20 % return are 8.

Therefore the respondents are less expected of high returns.

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RETURN EARNED ON INVESTMENT

Return earned %

Equity 15

Mutual funds 20

Insurance 20

gold 25

15%20% 20%

25%

RETURN EARNEDEQUITY MUTUAL FUNDS INSURANCE GOLD

Analysis:

Gold has the maximum return on investment for the period of one year holding and after

that insurance and mutual funds have given equal returns which shows that investment

made through asset management would give better returns also.

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OVERALL RETURN EARNED

Overall return earned %

High risk 27

Medium risk 16

Low risk 9

HIGH RISKMEDIUM RISK

LOW RISK

27%

16%

9%

RETURN ON TOTAL INVESTMENT

Analysis:

The respondents who have high risk affordability have 27 % return and who have

medium risk have 16 % return and who have low risk profile 9 % return.

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CHAPTER 4

FINDING, SUGGESTIONS AND LIMITATIONS

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FINDINGS

1. As per analysis it is found that people want to takes risk as 55% people were

ready to take moderate risk & 25% people were ready to take the high risk so to

get the higher return.

2. People are more interested in mutual funds than direct exposure to equity

market.

3. People in Raipur are more aware about gold as an investment.

4. Also people want to save their income tax so that is why they invest in various

products offered by the bank.

5. The promotional activity of KMBL is quite average due to which people generally

do not know about KMBL.

6. As per analysis of data it was found, that majority of customers want to grow their

money through mutual fund and insurance.

7. While doing summer training it was found that most of the people are not aware

about KMBL.

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SUGGESTIONS

1. Spread awareness about the investment facilities and the products among the

people of Raipur.

2. KMBL should increase the number of branches in Chhattisgarh as it becomes a

hindrance in the path of their success, as willing individuals don’t get associated

due to unavailability of branches.

3. People in Raipur are not aware of Kotak Mahindra as a bank therefore they

should also focus on promotional activities

4. KMBL should advise their customers regularly about their various investment

schemes.

5. KMBL should open more ATMS as it has to increase the flow of money more.

6. KMBL should promote their bank through advertisement or through other

channel. So that everybody should get aware of this bank.

7. KMBL must emphasize more to make more and more customers contact.

8. Time to time KMBL should take their customers feedback, so that they can asses

themselves.

9. KMBL should launch the following products soon i.e. home loans, credit cards

and education loans. because many person are there who have asked about

these products.

10.Mobile banking provided KMBL is not working properly, so KMBL should take this

into consideration and try to eradicate such problems.

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Limitations:

Every work has its own limitations. Limitations are extent to which the process

Should not exceed. The following limitations for the project are:

1. Duration of project was not enough to make our conclusion on such a vast.

2. Time constraints have also become a major limitation.

3. The sample size taken for drawing the conclusion was not sizeable.

4. Investor ignorance was faced during discussions with respondents.

5. Answers given by the customers and bank personnel might be biased, which

may have my project.

6. Bias or inhibition of individuals in order to fill the questionnaire.

7. Since the sample size is small thus we could not come to an exact conclusion.

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CONCLUSIONS

1. From the analysis we reach to the conclusion that people want to invest in such

product where they get high return with minimal risk.

2. Investment in equity market should be more for high return.

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BIBLIOGRAPHY AND WEB I LIOGRAPHY

Bibliography and Webiliography includes references, books, magazines, web sites and

newspapers that are used during any research. I used following bibliography and

Webiliography during my research project.

1. Kothari C.R. “Research Methodology”-New Age International Publishers.

(Publication Year -2008) Page No.152

2. ICFAI journal of behavioral finance,july 2009

3. www.google.com

4. www.wikipedia

5. www.kotak.com

6. Others.

Questionnaire

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Respected Sir/Madam,

I am conducting a research titled as “ANALYSIS OF RETURN ON INVESTMENT OF CUSTOMERS OF KMBL VIS-A-VIS MARKET TRENDS AND CUSTOMER NEEDS”. I need your help in conducting this survey. I need your precious and valuable inputs/views/opinions. You can give your precious inputs with the help of filling the questionnaire which has given below. The information will keep confidential and will be exclusively used for academic purpose.

Respondent’s Information :

NAME:ADDRESS:MOBILE NO:GENDER: [ ] Male [ ] Female

AGE: [ ] 20-30 [ ] 30-40 [ ] 40-50 [ ] 50-60 [ ] above 60

OCCUPATION: [ ] Service [ ] Business [ ] Self employed [ ] Professional

1. What is your annual income?[ ] 2-5 lakh [ ] 5-10 lakh [ ] 10-15 lakh [ ] above 15 lakh

2. How many members are there in your family? [ ] 1-3 [ ] 4-6 [ ] 7-10 [ ] More than 10

3. Do you have any investment in KMBL?[ ] Yes [ ] No

4. If yes, then in which product you have invested[ ] Kotak gold Eternity [ ] Kotak Trinity [ ] Kotak mutual fund[ ] Kotak life insurance[ ] Kotak reality fund

5. How much amount you have invested/you want to invest?[ ] Less than 50,000 [ ] 50,000-1,00,000

[ ] 1,00,000-5,00,000 [ ] More than 5,00,000

6. On which investment option you want to invest/have invested:Investment option Amount (Rs.)

Mutual fundInsuranceTrinityGoldReality fund

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7. If mutual fund, please give details about product and return earned:Product name Amount invested

(Rs.)Return earned (%)

8. If insurance, please give details about product and return earned:Product name Amount invested

(Rs.)Return earned (%)

9. What is the holding period of investment? [ ] less than 1 year [ ] 1-5 years [ ] 5-10 years [ ] 10-15 years

10.What was the purpose of your investment? [ ] Rate of return [ ] Safety [ ] Risk factor [ ] Tax benefit 11.How much risk you can afford? [ ] High [ ] Medium [ ] Low

12.What is the rate of return you are looking for? [ ] 5-10% [ ] 10-15% [ ] 15-20% [ ] more than 20%

13.What mode of return you prefer? [ ] Monthly [ ] Quarterly [ ] Half yearly [ ] Annually

14.What mode of investment you prefer [ ] Monthly [ ] Quarterly [ ] Half yearly [ ] Annually

Thank You for your valuable inputs and options.

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Economy & Finance