An organisational study on kotak Mahindra bank

Banking and Finance FINANCE

Finance is the life blood of business . it flows in mostly from scale of

goods and services. It flows out for meeting various types of expenditure.

Teh activating element in any business which may be on industrial or

commercial under taking is teh finance . often defined simply as the

management of money or “funds” management. Modern finance,

however, is a family of business activity that includes the origination,

marketing, and management of cash and money surrogates through a

variety of capital accounts, instruments, and markets created for

transacting and trading assets, liabilities, and risks. Finance is

conceptualized, structured, and regulated by a complex system of power

relations within political economies across state and global markets.

Finance is both art (e.g. product development) and science (e.g.

measurement)

Bank

A bank is a financial institution and a financial intermediary that

accepts deposits and channels those deposits into lending activities, either

directly or through capital markets. A bank connects customers that have

capital deficits to customers with capital surpluses.

Financial markets

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An organisational study on kotak Mahindra bank

In economics, a financial market is a machanism that allows people to

buy and sell (trade) financial securities (such as stocks and bonds),

commodities (such as precious metals or agricultural goods), and other

fungible items of value at low transaction cost and at prices that reflects

the efficient-market hypothesis.

Both general markets( where many commodities are traded ) and

specialized markets ( where only one commodity id traded) exist. Market

work by placing many interested buyers and sellers in one “place”

(“BANKS”) , thus making it easier for them to find each other

Indian financial market

What does indian financial market comprise of ? it talks the primary

market, FDI , alternative investment options, banking and insurance and

pension sectors , wealth managemenet segment as well .with all these

elements in the indian financial market, it happens to be one of the oldest

across the globe and is definitely the fastest growing and the best among

all the financial markets of the emerging economies

Evolution of banking sector

Banking in India originated in the last decades of the 18th century.

The first banks were The General Bank of India, which started in 1786,

and Bank of Hindustan, which started in 1790; both are now defunct.

The oldest bank in existence in India is the State Bank of India, which

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originated in the Bank of Calcutta in June 1806, which almost

immediately became the Bank of Bengal. This was one of the three

presidency banks, the other two being the Bank of Bombay and

the Bank of Madras, all three of which were established under charters

from the British East India Company. For many years the Presidency

banks acted as quasi-central banks, as did their successors. The three

banks merged in 1921 to form the Imperial Bank of India, which, upon

India's independence, became the State Bank of India in 1955.

Nationalization

Despite the provisions, control and regulations of Reserve Bank of

India, banks in India except the State Bank of India or SBI, continued

to be owned and operated by private persons. By the 1960s, the Indian

banking industry had become an important tool to facilitate the

development of the Indian economy. At the same time, it had emerged as

a large employer, and a debate had ensued about the nationalization of the

banking industry. Indira Gandhi, then Prime Minister of India,

expressed the intention of the Government of India in the annual

conference of the All India Congress Meeting in a paper entitled "Stray

thoughts on Bank Nationalization." The meeting received the paper with

enthusiasm.

Thereafter, her move was swift and sudden. The Government of India

issued an ordinance and nationalized the 14 largest commercial banks

with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a

national leader of India, described the step as a "masterstroke of political

sagacity." Within two weeks of the issue of the ordinance, 3

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the Parliament passed the Banking Companies (Acquisition and Transfer

of Undertaking) Bill, and it received the presidential approval on 9

August 1969.

A second dose of nationalization of 6 more commercial banks followed in

1980. The stated reason for the nationalization was to give the

government more control of credit delivery. With the second dose of

nationalization, the Government of India controlled around 91% of the

banking business of India. Later on, in the year 1993, the government

merged New Bank of India with Punjab National Bank. It was the only

merger between nationalized banks and resulted in the reduction of the

number of nationalized banks from 20 to 19. After this, until the 1990s,

the nationalized banks grew at a pace of around 4%, closer to the average

growth rate of the Indian economy.

Liberalization

In the early 1990s, the then Narasimha Rao government embarked on a

policy of liberalization, licensing a small number of private banks. These

came to be known as New Generation tech-savvy banks, and included

Global Trust Bank (the first of such new generation banks to be set up),

which later amalgamated with Oriental Bank of Commerce, Axis

Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move,

along with the rapid growth in the economy of India, revitalized the

banking sector in India, which has seen rapid growth with strong

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contribution from all the three sectors of banks, namely, government

banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed

relaxation in the norms for Foreign Direct Investment, where all Foreign

Investors in banks may be given voting rights which could exceed the

present cap of 10%,at present it has gone up to 74% with some

restrictions.

The new policy shook the Banking sector in India completely. Bankers,

till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%;

Go home at 4) of functioning. The new wave ushered in a modern

outlook and tech-savvy methods of working for traditional banks. All this

led to the retail boom in India. People not just demanded more from their

banks but also received more.(2010), banking in India is generally fairly

mature in terms of supply, product range and reach-even though reach in

rural India still remains a challenge for the private sector and foreign

banks. In terms of quality of assets and capital adequacy, Indian banks are

considered to have clean, strong and transparent balance sheets relative to

other banks in comparable economies in its region. The Reserve Bank of

India is an autonomous body, with minimal pressure from the

government. The stated policy of the Bank on the Indian Rupee is to

manage volatility but without any fixed exchange rate-and this has mostly

been true.

With the growth in the Indian economy expected to be strong for quite

some time-especially in its services sector-the demand for banking

services, especially retail banking, mortgages and investment services

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are expected to be strong. One may also expect M&As, takeovers, and

asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to

increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.

This is the first time an investor has been allowed to hold more than 5%

in a private sector bank since the RBI announced norms in 2005 that any

stake exceeding 5% in the private sector banks would need to be vetted

by them.

In recent years critics have charged that the non-government owned

banks are too aggressive in their loan recovery efforts in connection with

housing, vehicle and personal loans. There are press reports that the

banks' loan recovery efforts have driven defaulting borrowers to suicide.

Adoption of banking technology

The IT revolution had a great impact in the Indian banking system. The

use of computers had led to introduction of online banking in India. The

use of the modern innovation and computerization of the banking sector

of India has increased many folds after the economic liberalization of

1991 as the country's banking sector has been exposed to the world's

market. The Indian banks were finding it difficult to compete with the

international banks in terms of the customer service without the use of the

information technology and computers.

The RBI in 1984 formed Committee on Mechanization in the Banking

Industry (1984) whose chairman was Dr C Rangarajan, Deputy Governor,

Reserve Bank of India. The major recommendations of this committee

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were introducing MICR Technology in all the banks in the metropolis in

India. This provided use of standardized cheque forms and encoders.

In 1988, the RBI set up Committee on Computerization in Banks (1988)[6] headed by Dr. C.R. Rangarajan which emphasized that settlement

operation must be computerized in the clearing houses of RBI in

Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram.It

further stated that there should be National Clearing of inter-city cheques

at Kolkata, Mumbai, Delhi, Chennai and MICR should be made

Operational. It also focused on computerization of branches and

increasing connectivity among branches through computers. It also

suggested modalities for implementing on-line banking. The committee

submitted its reports in 1989 and computerization began form 1993 with

the settlement between IBA and bank employees' association.

IN 1994, Committee on Technology Issues relating to Payments System,

Cheque Clearing and Securities Settlement in the Banking Industry

(1994) was set up with chairman Shri WS Saraf, Executive Director,

Reserve Bank of India. It emphasized on Electronic Funds Transfer

(EFT) system, with the BANKNET communications network as its

carrier. It also said that MICR clearing should be set up in all branches of

all banks with more than 100 branches.

Committee for proposing Legislation on Electronic Funds Transfer and

other Electronic Payments (1995) emphasized on EFT system. Electronic

banking refers to DOING BANKING by using technologies like

computers, internet and networking, MICR, EFT so as to increase

efficiency, quick service, productivity and transparency in the transaction.

Apart from the above mentioned innovations the banks have been selling

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the third party products like Mutual Funds, insurances to its clients. Total

numbers of ATMs installed in India by various banks as on end March

2005 is 17,642. The New Private Sector Banks in India is having the

largest numbers of ATMs which is followed by SBI Group, Nationalized

banks, Old private banks and foreign banks. The total off site ATM is

highest for the SBI and its subsidiaries and then it is followed by New

Private Banks, Nationalized banks and foreign banks. While on site is

highest for the nationalized banks of India.

Top ten banks in India:

1. State Bank of India (SBI),

2. ICICI BANK,

3. AXIS BANK,

4. HDFC BANK,

5. BANK OF INDIA,

6. BANK OF BARODA,

7. PUNJAB BANK OF INDIA,

8. CITI BANK,

9. KOTAK BANK,

10.UNION BANK

Wealth management

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An organisational study on kotak Mahindra bank

Wealth management is an investment advisory discipline that

incorporates financial planning, investment portfolio management and

a number of aggregated financial services. High Net worth

Individuals (HNWIs), small business owners and families who desire

the assistance of a credentialed financial advisory specialist call upon

wealth managers to coordinate retail banking, estate planning, legal

resources, tax professionals and investment management. Wealth

managers can be an independent Certified Financial Planner, MBAs,

Chartered Wealth Manager, CFA Charter holders or any credentialed

professional money manager who works to enhance the income, growth

and tax favored treatment of long-term investors. Wealth management is

often referred to as a high-level form of private banking for the

especially affluent. One must already have accumulated a significant

amount of wealth for wealth management strategies to be effective.

Private wealth management (PWM) is the term generally used to

describe highly customized and sophisticated investment

management and financial planning services delivered to high net

worth investors. Generally, this includes advice on the use of trusts and

other estate planning, vehicles, business succession or stock option

planning, and the use of hedging derivatives for large blocks of stock.

Traditionally, the wealthiest retail clients of investment firms demanded a

greater level of service, product offering and sales personnel than were

received by the average clients. With an increase in the number of

affluent investors in recent years, there has been an increasing demand for

sophisticated financial solutions and expertise throughout the world.

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The CFA Institute curriculum on "Private Wealth Management"

indicates that there are two primary factors that distinguish the issues

facing individual investors from those of institutions.

Time horizons are different. Individuals face a finite life as

compared to the potentially infinite life of institutions. This fact

requires strategies for transferring assets at the end of an individual’s

life. These transfers are subject to laws and regulations that vary from

locality to locality and therefore the strategies available to address this

situation vary.

Individuals are more likely to face a variety of taxes on investment

returns that vary from locality to locality. Portfolio management

techniques that provide individuals with after tax returns that meet

their objectives are necessarily going to be specific to these tax

structures.

The term was first used by the elite retail (or "Private Client") divisions

of firms such as Goldman Sachs or Morgan Stanley (before the Dean

Witter Reynolds merger), to distinguish themselves from mass market

offerings, but since has spread throughout the financial services industry.

Certain larger firms (UBS, Morgan Stanley and Merrill Lynch) have

"tiered" their platforms – with separate branch systems and advisor

training programs, distinguishing Private Wealth Management from

"Wealth Management", with the latter term used to describe the same

type of services, but with a lower degree of customization and delivered

to mass affluent clients. In the late 1980s private banks and brokerage

firms began to offer seminars and client events designed to showcase the 10

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expertise and capabilities of the sponsoring firm. Within a few years a

new business model emerged – the Institute for Private Investors in 1991.

These new entities were devoted to educating the ultra wealthy investor

and providing a network of peers for the ultra high net worth

individual and their families. Their growth since the 1990s indicates a

market eager to become more informed about private wealth

management.

Wealth management education for private investors with substantial

wealth is offered by several leading universities. The first such program

was offered by the American Academy of Financial Management (now

branded as the AAFM Global Academy of Financial Management) who

offers the CWM Chartered Wealth Manager Program and then

the Wharton School of the University of Pennsylvania. Since 1999,

over 5000 people from over 100 countries have completed the AAFM

CWM Wealth Manager program.  At Wharton, 520 investors from 29

countries have completed the course. The five-day program is offered

twice a year and is a continuing partnership with the Institute for Private

Investors. Both The University of Chicago and Stanford University also

offer 5 day programs. In 2009, Columbia University offered a three day

program on value investing designed for high net investors Wealth

management can be provided by large corporate entities, independent

financial advisers or multi-licensed portfolio managers whose services are

designed to focus on high-net worth clients. Large banks and

large brokerage houses create segmentation marketing-strategies to sell

both proprietary and non-proprietary products and services to investors

designated as potential high net-worth clients. Independent wealth 11

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managers use their experience in estate planning, risk management, and

their affiliations with tax and legal specialists, to manage the diverse

holdings of high net worth clients. Banks and brokerage firms use

advisory talent pools to aggregate these same services.

The events of 2008 in the financial markets caused investors to address

concerns within their portfolios. "The past 18 months have challenged

traditional thinking about investing and asset allocation, diversification,

and correlation. For individual investors, risk tolerances have been tested,

investment assumptions have been overturned, and fundamental truisms

have been questioned." For this reason wealth managers must be prepared

to respond to a greater need by clients to understand, access, and

communicate with advisers regarding their current relationship as well as

the products and services that may satisfy future needs. Moreover,

advisors must have sufficient information, from objective sources,

regarding all products and services owned by their clients to answer

enquiries regarding performance and degree of risk-at the client, portfolio

and individual security levels. "This state of affairs poses a dilemma for

wealth managers, who, for a generation, have adhered to the core

principles of asset allocation and earned their keep by preaching the

mantras of 'buy and hold', 'invest for the long term', and when things get

tough, 'stay the course'.”

Today wealth management advisors must have access to an objective

content repository. This repository must contain a current and readily

available profile of the client’s holdings.

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An organisational study on kotak Mahindra bank

1 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. 6,523 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 6.2 million customer accounts.

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“Kotak Mahindra Bank” is one of India's leading

financial private banking institutions. It offers banking solutions that

covers almost every sphere of life. Some of its financial services include

commercial banking, stock broking, mutual funds, life insurance and

investment banking. Established under the brand of Kotak Mahindra

Finance Ltd in 1984, it was given the license to carry on with banking

business by the Reserve Bank of India in February 2003. It is the first

company in the Indian banking history to convert to be converted from a

private financial institution to a bank

.

The bank's share value has multiplied 23 times and its market

capitalization is just shy of Rs28, 000 corers. That's quite some growth

since the days when it started out as three people in a 300-square-feet

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office in 1985. Today it has more than 20,000 employees and Rs10, 000

crore in revenue as it completes 25 years. The group plans to double

revenues over the next four years, adding 2,500 employees every year

Kotak Mahindra Bank caters to the myriad needs of Resident

Individuals, NRIs and Businesses. Kotak Mahindra Bank offer complete

financial solutions for infinite needs of all individual & non-individual

customers depending on the customer's need - delivered through a state

of the art technology platform. Investment products like Mutual Funds,

Life Insurance, retailing of gold coins and bars etc are also offered. The

Bank follows a mix of both open and closed architecture for distribution

of the investment products. All this is backed by strong, in-house

research on Mutual Funds

.

Our Savings Account goes beyond the traditional role of savings, and

allows you to put aside a lot more than just money. The worry-free

features of our Savings Account provides a range of services from funds

transfer, bill payments, 2-way sweep through our Active Money feature

& much more. You can place standing instructions for investment

options that can be booked through Internet or through Phone banking

services. The Savings Account thus provides for attractive returns

earned through a comprehensive suite products and services that offer

investment options, all delivered seamlessly to the customer by well

integrated technology platforms. Apart from Phone banking and Internet

banking, the Bank offers convenient banking facility through Mobile

banking, SMS services, Netc@rd, Home banking and Bill Pay facility

among others.

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The Depository services offered by the Bank allows the customers to

hold equity shares, government securities, bonds and other securities in

electronic or Demat forms.

Our “Salary 2 Wealth” offering provides comprehensive administrative

solutions for Corporate with features such as easy and automated web

based salary upload process thereby eliminating the paper work involved

in the process, a dedicated relationship manager to service the corporate

account, customized promotions and tie - ups and many such unique

features. The whole gamut of investment products and investment

advisory services is available to the salary account holders as well.

For the business community, we offer comprehensive business solutions

that include the Current Account, Trade Services, Cash Management

Service and Credit Facilities, keeping in mind the myriad needs of your

business... Our Wholesale banking products offer business banking

solutions for long-term investments and working capital needs, advice

on mergers and acquisitions and equipment financing. To meet special

needs of the rural market, we have dedicated business offerings for

agricultural financing and infrastructure. Our Agriculture Finance

division delivers customised products for capital financing and

equipment financing needs of our rural customers.

For financial liquidity we offer you loans that meet your personal

requirements with quick approval and flexible payment options. To

complete the personal financial offerings space, we now offer Kotak

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Credit Card which is a hassle-free, transparent product that also happens

to be the first vertical credit card in the industry.

Kotak Mahindra Bank addresses the entire spectrum of financial needs

of Non-Resident Indians. Our tie-up with the Overseas Indian

Facilitation Centre (OIFC) as a strategic partner gives us a platform to

share our comprehensive range of banking & investment products and

services for Non Resident Indians (NRIs) and Persons of Indian Origin

(PIOs). Our Online Account Opening facility and Live Chat service

helps you to get in touch with us at the comfort of your homes and at

your

OUR SENIOR MANGER

Mr. Uday Kotak…. Founder of the Kotak group

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Mr. Uday Kotak, B.Com. MMS, aged 46 years, is the Executive Vice-

Chairman and Managing Director of the Bank and is its principal founder

and promoter. Over the past 20 years, he has successfully built a well-knit

team of high quality professionals who have been given independent

charge of various businesses in Kotak Mahindra group. He was

responsible for starting the business as a start-up venture in a limited

range of activities and then building it up into a full financial services

group, many of the constituents of which are among the leading players

in their respective fields. He is on the Board of the Indian Council for

Research on International Economic Relations (ICRIER)

Mr.C.jayaram Joint Managing Director

Mr. C. Jayaram, is a Joint Managing Director of the Bank and is currently

in charge of the Wealth Management Business of the Kotak Group. An 18

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alumnus of IIM Kolkata, he has been with the Kotak Group since 1990

and member of the Kotak board in October 1999. He also oversees the

international subsidiaries and the alternate asset management business of

the group. He is the Director of the Financial Planning Standards Board,

India. He has varied experience of over 25 years in many areas of finance

and business, has built numerous businesses for the Group and was CEO

of Kotak Securities Ltd. An avid player and follower of tennis, he also

has a keen interest in psychology

Mr.Dipak.gupta Joint Managing Director

An electronics engineer and an alumnus of IIM Ahmedabad, Mr. Gupta

has been with the Kotak Group since 1992 and joined the board in

October 1999.

He heads commercial banking, retail asset businesses and looks after

group HR function. Early on, he headed the finance function and was

instrumental in the joint venture between Kotak Mahindra and Ford

Credit International. He was the first CEO of the resulting entity, Kotak

Mahindra Primus Ltd.

Year Milestone

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

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Capital Company and Securities

2008 Launched a Pension Fund under the New Pension System

2009Kotak Mahindra Bank Ltd. Opened a representative office in Dubai

Entered Ahmedabad Commodity Exchange as anchor investor

2010

Ahmedabad Derivatives and Commodities Exchange, a Kotak

anchored enterprise, became operational as a national commodity

exchange.

2011Kotak Mahindra Bank Ltd entered into a Business Cooperation

arrangement with CIMB Group Sdn Bhd, Malaysia.

Corporate social responsibilities

Kotak uses the power of its human and financial capital to help in

transforming communities into vibrant, desirable places for people to

live. The group leverages its core competencies in three areas:

1. Sustainability

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An integral part of all Kotak Mahindra Group activities is to be

consistently responsible to shareholders, clients, employees, society and

the environment.

2. Economic Development

By helping people achieve their financial goals, Kotak strengthens the

fabric of communities and helps them overcome unemployment and

poverty to help them shape their future.

3. Doing My Bit

A growing number of employees are committed to civic leadership and

responsibility with the support and encouragement of the Kotak Group. A

number of employees have been involved in strengthening communities

through voluntary work, payroll giving and management inputs.

Vision

“To be among the top few private players with substantial market

presence”

Global Indian Financial Service Brand

Indian understanding: Global Standards of Delivery

Most Preferred Employers/Business Partners

Home from Bright minds and entrepreneurial skills

Most Trusted Financial Service Company

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High Standard of Compliance/Corporate Governance

Value and Not just Size

Business Driven with both Value and Growth in Mind.

MISSION

To consistently provide a full spectrum Of intelligent

financial choice

Be a preferred provider of the highest quality service In our

chosen business area

Objectives

The Code is intended -

To promote good banking practices by setting out the

minimum standards which Member Banks will follow in

their dealings with customers;

To foster customer confidence in the banking system;

To inculcate self-discipline amongst Member Banks

with a view To promoting healthy competition and

ethical practices in respect of banking services

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Products and services giving by the bank Banking & Savings

Banking Accounts

Credit Cards

Demat

Deposits

Convenience Banking

NRI Services

Privy League Business

Loans & Borrowings

Personal Loans

Car Loans

Home Loans

Loans Against Property

Commercial Loans

Dealer Finance

Investments & Insurance

Life Insurance

Mutual Funds

Share Trading

Structured Products

Gold

Estate Planning

Wealth Management

Consumer Research

Investing in IPOs 23

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Portfolio Management

Corporate &Institutional

Corporate Finance

Custody Services

Investment Banking

Institutional Equities

Treasury

Private Equity

Institutional Equities

Realty Fund

COMPETITORS PROFILE OF KOTAK MAHINDRA BANK

HDFC

The Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an ‘in principle’ approval from the Reserve

Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI’s liberalization of the Indian Banking Industry in 1994. The bank

was incorporated in August 1994 in the name of ‘HDFC Bank Limited’,

with its registered office in Mumbai, India. HDFC Bank commenced

operations as a Scheduled Commercial Bank in January 1995.

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ICICIBank

ICICI Bank is India’s second-largest bank with total assets of Rs.

3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax

Rs. 37.58 billion for the year ended March 31, 2009. The bank has a

network of 1,471 branches and about 4,721 ATM’s* in India and

presence in 18 countries. ICICI Bank offers wide range of banking

products and financial services to corporate and retail customers through

a variety of delivery channels and through its specialized subsidiaries and

affiliates in the areas of investment banking life and non-life insurance,

venture capital and asset management.

SBI Bank

The origin of the State Bank of India goes back to the first decade of the

19th century with the establishment of the bank of Calcutta in Calcutta on

2nd June, 1806. Three years later the bank received its charter and was

redesigned as the Bank of Bengal (2nd January, 1809). A unique

institution, it was the first joint stock bank of British India sponsored by

the Government of Bengal. The Bank of Bombay (15th April, 1840) and

the Bank of Madras (1st July, 1843), followed the Bank of Bengal. These

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three banks remained at the apex of the modern banking in India till there

amalgamation as the Imperial Bank of India on 27th January, 1921.

Primarily Anglo-Indian creations, the three presidency banks came into

existence either as a result of the compulsions of imperial finance or by

the felt needs of local European commerce and were not imposed from

outside in an arbitrary manner to modernize India’s economy. Their

evolution was, however, shaped by ideas culled from similar

developments in Europe and England, and was influenced by changes

occurring in the structure of both the local trading environment and those

in the relations of the Indian economy to the economy of Europe and the

global economic framework.

AXIS Bank

Axis Bank was the first of the new private banks to have begun operations

in 1994, after the Government of India allowed new private banks to be

established. The bank was promoted jointly by the Administrator of the

specified undertaking of the Unit Trust of India (UTI – I), Life Insurance

Corporation of India (LIC) and General Insurance Corporation of India

(GIC) and other four public sector units insurance companies i.e., National

Insurance Company Limited, The New India Assurance Company Limited,

The Oriental Insurance Company Limited and United India Insurance

Company Limited.

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The bank has strengths in both retail and cooperate banking and is

committed to adopting the best industry practices internationally in order to

achieve excellence.

ORGANISATION STRUCTURE:

Definition of 'Organizational Structure'

Explicit and implicit institutional rules and policies designed to provide a

structure where various work roles and responsibilities are delegated,

controlled and coordinated. Organizational structure also determines how

information flows from level to level within the company. In a centralized

structure, decisions flow from the top down. In a decentralized structure,

the decisions are made at various different levels. A good organizational

structure can often spell the difference between a smooth operating

organization and one in chaos. By establishing a hierarchical structure

with a clear chain of command, companies are better able to streamline

their operations.

DEPARTMENTS:Kotak being a relatively big company has a many departments in the

organization.

Finance department

Marketing department

Research department

Human resource department

Service department

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2.10.1 Organisational Structure of board of directors

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Chairman of Board

Director Director Director Director Director

CEO

Uday Kotak

An organisational study on kotak Mahindra bank

2.10.2Marketing structure of Kotak mahindra bank

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CTO (group)

AR

CFO

Jaiman butt

Coo

Vikram sud

CIO

SG

Secretary

BC

Joint MD

DG

Debts capital

manager

Risk manager

CTO (group)

RM

Marketing operations regional Head

Preeth pahwa

Sudeep singh

Bangalore

Rupesh

Chennai

Anuskha

AP

Indrani

Kerala

An organisational study on kotak Mahindra bank

2.10.3 Human resource department of kotak mahindra bank

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Manjeeth (Mumbai)

Vice president HR

Surpreeth Singh (Mumbai)

Vice president HR

Koruth verqhesa (Bangalore)

Vice president HR

Shailendra bhodria (New Delhi)

Vice president HR

Amithabsen (Mumbai)

Executive Vice president HR

Subhro bhandura (Bangalore)

Executive vice president HR

Subhro Mukarjee (Kolkata)

Chef manager HR

Ritika gosh (Bangalore)

Management Trainee

Raghuvendra nayak (Chennai )

Associate vice president HR

Rajendra khodake (Mumbai)

Senior manager HRKarthik

HR

Maha lakshmi

HR

An organisational study on kotak Mahindra bank

What kotak offer in wealth management

In kotak we provide wide range of products and services. Each offering is supported by thorough research and understanding of product characteristics, client specific requirements, and financial markets, to ensure an affective asset management.

The assets advisory services takes your wealth through the entire risk profiling and assets allocation process and subsequently advises you on your portfolio by effecting tactical calls and periodic reviews. The assets advisory services are structured to be completely aligned to you while remaining commercially viable. The key pillar of this service is that it is not riven by distribution dynamics and brokerage but through a completely open architecture that ensure transparent advices. Most importantly we have expert resources with the involvement of sophisticated models and a well-defined process to meet your investments objectives.

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An organisational study on kotak Mahindra bank

We also provide transactional service

Transactional services :- transactional services are backed by strong research and expertise across a variety of assets classes .we provide you access to the widest range of products which include both traditional and specialized products

Traditional products include:-

1. Direct equity investment :- generally refers to the buying and holding of shares on a stock market by individuals in anticipation of income from dividends and capital games as a value of stock rises

2. Mutual funds: - mutual fund is a professially managed pull of money from investors with similar investment objectives. A mutual fund represents many individual stocks from the variety of industries and is managed by a fund manager.

3. Insurance: - life insurance helps you to protect your family and yourself against an uncertain future. after deciding on the amount of insurance that you require , you need to decide on the policy the best suits your needs

4. Banking account an credit services :- you can gain access to exclusive banking benefits and a wide variety of credit products you can choose from

Specialized products

i. Structure products: - a structure investments product is generally a pre – package investment strategies which is based on derivate such as single security, a basket of securities, options, indices, commodities, debt, issue assurances and foreign currencies. a key feature of some structure products is a principal production functions which offers production of principal if held to maturity

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An organisational study on kotak Mahindra bank

ii. Discretionary and non- discretionary portfolio management services: - investing in equities requires time knowledge and constant monitoring of the market. For those who need an expert to help manage their investments, discretionary portfolio management service (PMS) comes as an answer the benefits of PMS are: - your portfolio is tailored after thorough research back by the expertise of the discretionary PMS TEAM. An experience team of portfolio managers ensures you portfolio is traced monitored and optimized at all times.

Non-discretionary (PMS) :- is a consultative and transparent method of investing . With NDPMS the investor is always consulted and informed of all the investment decisions, thus giving the investor total control

Private equity:-private equities are equity securities of un listed companies. Private equity investments are not subject to the same high level of government regulation as stock offerings to the general public. Private equity is also far less liquid than publicly traded stock

Real estate fund:- real estate funds are founded by a group of real estate professionals or experts to manage sale or rentals of property and real estate for the investor . some real estate funds may not actually own property as they may involve above average risk from volatility in property prices instead such funds invest in bonds or instruments that are secured by properties.

Estate planning: - includes creating a plan incorporating your wishes regarding your estate which provide for effective management, reservation and legacy of the estate during and after your life time. The primary gold of the estate planning is ensuring that the estate of the individual passes to the estate owners intended beneficiaries often including efficient tax and

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An organisational study on kotak Mahindra bank

succession planning and avoiding or minimizing court proceedings in successions

WHAT IS A RESEARCH?

Research is a systematic process of collecting and analyzing information

to increase our understanding of the phenomenon under study. It is the

function of the researcher to contribute to the understanding of the

phenomenon and to communicate that understanding to others.

WHAT IS A RESEARCH DESIGN?

Research design is a specification of methods and procedures for

acquiring the information needed for solving the problem. A research is

the arrangement of condition for collection and analysis of data in a

manner that aims to combine relevance to the research purpose with

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An organisational study on kotak Mahindra bank

economy in procedure. So a research design is the conceptual structure

within which research is conducted.

It involves the blue print of entire research study as what was the

problem identified, type of research, methods of data collection, what was

the sample size, objectives of research and limitations of the research.

TITLE OF THE STUDY: -

“Organizational study of kotak Mahindra bank .” With specific

reference to kotak wealth management

STATEMENT OF THE PROBLEM: -

Best Investment options for different types of investors in

wealth management. Analyzing market risk suitable to investors

Objectives to the study :- To educate and understand the service and benefits of wealth

management

Need for study :-

The basic purpose of this study is to know how much customers are

satisfied with services of wealth management and the other services

provided by kotak

SCOPE OF THE STUDY:-

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An organisational study on kotak Mahindra bank

The study is based on the survey which is conducted by various

customers who have shared their satisfaction level with the kotak

regarding their services.

METHODOLOGY OF RESERCH STUDY

Methodology of Research study adopted was survey method. For

primary data a sample size of twenty customers were contacted & data’s

were obtained from them through a questionnaires prepared in English.

Respondents were contacted at the Bank itself, some were contacted at

their work spots & some were at their residence, depending upon their

convenience. For secondary data marketing books, magazines, Journals

were referred.

SOURCES OF DATA

For the purpose of this study, data from two sources have been gathered

namely:-

(1) Primary Data

(2) Secondary Data

Primary Source: - are original source, which are collected directly

from the respondents. This information is collected through

questionnaire, personal interview and through observation.

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An organisational study on kotak Mahindra bank

Secondary Source:- are those that containing data which have been

collected and compiled for another purpose. These sources consist of

readily available information and already complied statistical statement

whose data may be used by the researchers for their study.

The secondary sources includes Annual Reports, Journals, Articles It

falls under primary method because we were supposed to do the

questionnaire method.

Limitation on the study

1. The research was limited to Bangalore city only.

2. The study suffers from time and cost constraints.

3. Information limitation.

4. Hesitant behaviour by customers.

5. Anticipating and avoiding problems.

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An organisational study on kotak Mahindra bank

The questionnaires were distributed among a sample size of 20, from

whom firsthand inform1ation was collected by questionnaire and

interview method. Questio1ns related to wealth management,

investments, risk profile etc., were asked to carry out the research

effectively and efficiently. The following is the analysis and

interpretation based on the answers received from the distribution of

questionnaire-primary data.

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An organisational study on kotak Mahindra bank

TABLE 4.1.What is your present income?

AMOUNT NO OF RESPONSE PERCENTAGE%

1.      Under 1,00,000 6 30

2.      Under 5,00,000 7 35

3.    Under 1 cr 5 25

4.      Under 5 cr  2 10

Analysis

Out of 20 people 30% of people have income under 100000, 35% of people have income under 500000, 25% of people have income under 1 cr , and 10% of people have income under 5 cr

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An organisational study on kotak Mahindra bank

Graph 4.1 shows the present income of the customer

Interpretation

The following chart can be inferred that average people have their income have up to 5 crs and rest people are represented above in the chart

TABLE 4.2 Total assets

AMOUNT No. of respondents PERCENTAGE

UNDER 5000000 5 25

UNDER 5000000 9 45

UNDER 1 CR 5 25

UNDER 5 CR 1 5

ABOVE 5 CR 0 0

Analysis

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An organisational study on kotak Mahindra bank

From 20 people 25% have under 1cr and 500000 assets, where as 45% have fewer than 5000000, and 5 % have less than 5 cr and no one has above 5 car

Graph 4.2 family’s total assets

INTERPRETATION

The following chart can be inferred that assets of the parents plus the customer’s earnings is added and summed together so that the evaluation of the customer’s background is easily identified.

TABLE 4.3 DO you have any life insurance

ANSWER NO OF RESPONSDENTS

PERCENTAGE

YES 10 50%

NO 10 50%

Analysis

Over here out of 20 people in the survey 50% say yes and 50% say no.

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An organisational study on kotak Mahindra bank

GRAPH 4.3 DO you have any life insurance

INTERPRETATION

The following chat can be inferred that for now there has to be an improvement to increase the customers in life insurance department as it is very essential for safety. And also the awareness has to be increased.

TABLE 4.4 IN WHICH FORM IS YOUR PROPOSED INVESTMENT CURRENTLY IN ?

ANSWER No OF RESPONDENTS

PERCENTAGE

CASH 12 60

OTHER INVESTMENTS

6 30

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An organisational study on kotak Mahindra bank

OTHER 2 10

Analysis

HERE out of 20 people 60 percent invest in cash, 30 % invest in other investments, and 10 % invests in other options

GRAPH 4.4 IN WHICH FORM IS YOUR PROPOSED INVESTMENT CURRENTLY IN?

INTERPRETATION: - The following chart can be inferred that the customer mostly feels safe in investing cash and other investments than taking risk in others options like stocks, funds

TABLE 4.5 DO YOU HAVE AN INVESTMENT ADVISOR?

ANSWER NO OF RESPONDENTS PERCENTAGE

YES 14 70

NO 6 30

Analysis

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An organisational study on kotak Mahindra bank

Out of 20 people 70 % say yes and 30 % say no

GRAPH 4.5 DO YOU HAVE AN INVESTMENT ADVISOR?

INTERPRETATION

The following chart can be inferred that we get to know whether the customer is capable of paying the extra money to receive the information as to which is the right/best option to invest

TABLE 4.6 WOULD YOU LIKE TO RECIVE REGULAR UPDATES ON YOUR INVESTMENT?

ANSWER NO OF RESPONDENTS PERCENTAGE

YES 20 100

NO 0 0

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An organisational study on kotak Mahindra bank

Analysis

100 % out of 20 people choose yes. And 0 % people have selected no.

GRAPH 4.6 WOULD YOU LIKE TO RECIVE REGULAR UPDATES ON YOUR INVESTMENT?

INTERPRETATION

Any investor would like to receive updates about their regular income and progress. It can be through calls, mails, post etc.

TABLE 4.7 HOW MANY YEARS HAS IT BEEN THAT YOU HAVE BEEN INVESTING?

ANSWER NO OF RESPONDENTS PERCENTAGE

Two years or lesser 9 45

Five years or lesser 7 35

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An organisational study on kotak Mahindra bank

Ten years or lesser 3 15

Above ten yrs 1 5

Analysis

Out of 20 people 45 % choose two years, 35% choose 5 years and 15 choose ten years, and 5 % choose more than ten

GRAPH 4.7 HOW MANY YEARS HAS IT BEEN THAT YOU HAVE BEEN INVESTING?

INTERPRETATION: - This helps the company to decide whether the customer is capable to invest in long period of time or short period of time . And also analyze the capacity of risk of the customers

TABLE 4.8 IN WHICH TYPE OF INVESTMENT PRODUCT DO YOU PREFER TO INVEST MOST?

ANSWER NO OF RESPONDENTS

PERCENTAGE%

bonds 7 35

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An organisational study on kotak Mahindra bank

public equities 5 25mutual funds 4 20commodities 1 5investment property 3 15

Analysis

Out of 20 people 35% of people select bonds, 25% people select public equities, 20% of people select mutual funds, 5 % of people select commodities, and 15% of people select investment properties

GRAPH 4.8 IN WHICH TYPE OF INVESTMENT PRODUCT DO YOU PREFER TO INVEST MOST?

INTERPRETATION:-People feel safe investing in bonds . Whereas other investments like mutual funds and public equities involves risk

TABLE 4.9 DO YOU DO INVESTMENT TRADING ON A REGULAR BASIS?

ANSWER NO OF RESPONDENTS

PERCENTAGE%

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An organisational study on kotak Mahindra bank

ONCE IN A WEEK 3 15

ONCE IN A MONTH

9 45

ONCE IN A YEAR 8 40

Analysis

Out of 20 customers 15 % is chosen for once in a week, 45% is chosen for once in a month , and 40 % is chosen for once in a year

GRAPH 4.9 DO YOU DO INVESTMENT TRADING ON A REGULAR BASIS?

INTERPRETATION:-Once a month, Because it is the safer period to trade as well as earn returns than the rest others as they involve high risk and low returns

TABLE 4.10 DO YOU AGREE THAT YOU HAVE STRONG INVESTMENT KNOWLEDGE?

ANSWER NO OF PERCENTAGE

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An organisational study on kotak Mahindra bank

RESPONDENTS %

STRONGLY AGREE

4 20

AGREE 3 15

SOMEWHAT AGREE

5 25

DISAGREE 8 40

Analysis

From the survey we get to know that 20% of people have strong knowledge about investments, 15% of people have only agreed to it, 25% have vague idea about the investments, and 40% of people have no idea about the whole investment

GRAPH 4.10 DO YOU AGREE THAT YOU HAVE STRONG INVESTMENT KNOWLEDGE?

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An organisational study on kotak Mahindra bank

INTERPRETATION

Out of 100 %, we can see that more than 40 % of people have no idea about the investment knowledge, there by the education and the awareness has to increase and the advisory service has to increase to help the investors in investing.

TABLE 4.11 WHAT IS YOUR RISK TOLERANCE PERCENTAGE?

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An organisational study on kotak Mahindra bank

ANSWER NO OF RESPONDENTS

PERCENTAGE %

FIVE PERCENT OR LESSER

6 30

TEN PERCENT OR LESSER

11 55

MORE THAN TEN PERCENT

3 15

Analysis

Out of the 20 people 30% of people have risk tolerance under 5 %, 55% of people have under 10 %, and 15 % of people have above 10%

GARPH 4.11 WHAT IS YOUR RISK TOLERANCE PERCENTAGE?

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An organisational study on kotak Mahindra bank

INTERPRETATION

Here we can realize that the risk tolerance of the customers or the clients are very less as they have not much information about the investment options and how to gain higher returns. All the investors are very particular about their money and would not like to risk them by any mistake

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An organisational study on kotak Mahindra bank

TABLE 4.12 WHICH INVESTOR PROFILE SUITS YOU THE MOST?

ANSWER NO OF RESPONDENTS

PERCENTAGE%

EXPERIENCED INVESTOR

6 30

INEXPERIENCED INVESTOR

14 70

PROFESSIONAL INVESTOR

2 10

Analysis

Out of the survey we can see that 30% of people come under experienced investor, 70% of people come under inexperienced investor, and 10% come under professional investor

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An organisational study on kotak Mahindra bank

GRAPH 4.12 WHICH INVESTOR PROFILE SUITS YOU THE MOST?

INTERPRETATION

Large number of people have selected as inexperienced investor as they don’t have any knowledge about investments and the benefits. Here we the advisors have a role to play and help them in investing

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An organisational study on kotak Mahindra bank

TABLE 4.13 HOW SATISFIED ARE YOU WITH YOUR INVESTMENT?

ANSWER NO OF RESPONDENTS

PERCENTAGE%

VERY SATISFIED 6 30

SATISIFED 5 25

SOMEWHAT SATISFIED

6 30

DISSATISFIED 3 15

Analysis

From this table we can see that 60% of people say that they are somewhat satisfied and very satisfied with their investment made, and rest 25% say that they are satisfied and 15% say that they are not satisfied

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An organisational study on kotak Mahindra bank

GRAPH 4.13 HOW SATISFIED ARE YOU WITH YOUR INVESTMENT?

INTERPRETATION

The following chart can be inferred that 30% of people who are satisfied with the investments made, rest are advised to improve on the investment services

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An organisational study on kotak Mahindra bank

TABLE 4.14 IS YOU WILLING TO TAKE RISK WHILE MAKING YOUR INVESTMENTS?

ANSWER NO OF RESPONDENTS PERCENTAGE%

YES 8 40

NO 8 40

MAY BE 4 20

Analysis

From this table we can see that 40% of people are willing to take risk, where the rest 40% say no, and 20% say may be

GRAPHS 4.14 ARE YOU WILLING TO TAKE RISK WHILE MAKING YOUR INVESTMENTS?

INTERPRETATION

The following chart can be inferred that major people will like to take risk , where as some people say no or may be , as they still have to gain information before investing and being confident about the investment

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An organisational study on kotak Mahindra bank

TABLE 4.15 HOW FAST DO YOU WANT YOUR RETURNS FROM INVESTMENT?

ANSWER NO OF RESPONDENTS

PERCENTAGE%

IN ONE WEEK 9 45

IN ONE MONTH 7 35

OIN A YEAR 4 20

Analysis

From this table we can see that out of 20 people 45% want their returns in one week , 35 % want their returns in one month , and 20% people want their returns in one year

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An organisational study on kotak Mahindra bank

GRAPH 4.15 HOW FAST DO YOU WANT YOUR RETURNS FROM INVESTMENT?

INTERPRETATION

The following chart can be inferred that many people like to receive return on investments in a short period of time majorly on a week basis and rest people would like to make long term investments

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An organisational study on kotak Mahindra bank

Summary finding

Findings

There are 75% people who would prefer advisors opinion before

investing their money into any kind of investments options.

As per the survey, we can see that the investors feel safe and

secure when they are been given most preference and served well.

From the survey , it is seen that the investors are most likely to

take risk if the returns are within a month

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An organisational study on kotak Mahindra bank

SUGGESTIONS

1. KOTAK MAHINDRA BANK has taken few measures to maintain

loyalty of investor and avoid dissatisfaction.

2. Investor is the king of the market or business. They need to be satisfied,

kotak Mahindra bank is competitive enough to provide more services and

maintain chain of investors.

3. People have no time to visit bank, so kotak Mahindra bank should try to

focus on latest techniques like processing of wealth management through

internet

4. There should be more print & TV ads for the awareness of wealth

management

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An organisational study on kotak Mahindra bank

CONCLUSION

Kotak Mahindra bank is fine-tuned to improve on the services and

account opening facilities for its NRI customers and would also consider

the professional approach to improve on its services. It has really a

diversified type of organisation structure of different departments. And

Kotak Mahindra bank has its NRI braches at various countries. It has its

customers at all countries like Middle East countries. Asian countries

etc... The customer satisfaction with Kotak Mahindra is satisfactorily

good.

The schemes in NRI account of Kotak Mahindra is assisted all categories

of customers and it is available with list opening procedures to all the

customers. The Kotak Mahindra has relationship manager facility to carry

on the banking needs of customers with just a call far away. And it also

follows good employee appraisal techniques for employee retention and

to reduce the attrition rate.

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An organisational study on kotak Mahindra bank

Bibliography

Through internet

1.http://www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Kotak-Mahindra-Bank-Ltd/500247

2. http://aboutus.kotak.com/index.html

3. http://aboutus.kotak.com/kotak-mahindra-group/senior- management.html

4. http://www.kotak.com/bank/pressroom/pdf/Q4FY07_results.pdf

http://www.moneycontrol.com/competition/kotakmahindrabank/comparison/KMB

Through magazine and brouchers of kotak Mahindra bank

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An organisational study on kotak Mahindra bank

ANNEXURE INVESTMENT OPTIONS FOR INVESTORS IN WEALTH

MANAGEMENT

Name: ____________________________Age:______________________________Occupation:______________________ 1) Your present income: 1. Under 1, 00,0002. Under 5, 00,000 3. Under 1 cr4. Under 5 cr 2) Total assets: i. Under 5, 00,000 ii. Under 50, 00,000iii. Under 1 cr iv. Under 5 crv. Above 5 cr 3) DO you have any Life insurance: YES /NO 4) In which form is your proposed investment currently in? I. cash II. Other investment III. Other 5) Do you have an investment advisor? Yes / No6) Would you like to receive regular updates on your investment? Yes /No 7) How many years has it been that you have been investing?

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An organisational study on kotak Mahindra bank

a) Two years or lesserb) Five years or lesserc) Ten years or lesserd) More than ten years 8) In which type of investment product do you prefer to invest most?a) Bondsb) Public equitiesc) Mutual fundsd) Commoditiese) Investment property

9) Do you do investment trading on a regular basis?a) One in a weekb) Once in a monthc) Once in a year 10) Do you agree that you have strong investment knowledge?a) Strongly agreeb) Agreec) Somewhat agreed) Disagree 11) What is your risk tolerance percentage?a) Five per cent or lesserb) Ten per cent or lesserc) More than ten per cent 12) Which investor profile suits you the most?a) Experienced investorb) Inexperienced investorc) Professional investor 13) How satisfied are you with your investments?a) Very satisfiedb) Satisfiedc) Somewhat satisfiedd) Dissatisfied 14) Are you always willing to take risk while making your investments?a) Yes

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An organisational study on kotak Mahindra bank

b) Maybec) No 15) How fast do you want your returns from your investments?a) In one weekb) In one monthc) In one year

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