MARKETING OF FINANCIAL SERVICES

COMPREHENSIVE REPORT OF KOTAK

Submitted to;
Prof. Sudhir Sharma

Submitted by Group 2:
PUNEET SINGH DHANI (PGFA1939)
LAVISH DHINGRA (PGFA1938)
PALAK JAIPURIA (PGFA1931)
PRANAM MODI (PGFA1933)
PRANSHU KAUSHIK (PGFA1935)
NIMISHA MATHUR (PGFA1930)
INTRODUCTION

Kotak Mahindra Bank Limited, with its headquarters in Mumbai, Maharashtra, India, is an
Indian private sector bank. It provides banking products and financial services in the fields of
personal finance, investment banking, life insurance and asset management for corporate and
retail customers. As of April 2019, with 1600 branches & 2519 ATMs, it is the second largest
Indian private sector bank by market capitalization.

The Kotak Mahindra group was founded in 1985 and is one of the most reputed financial
conglomerates in India. Kotak Mahindra Finance Ltd, the group's flagship firm, was granted a
license by the Reserve Bank of India in February 2003 to conduct banking operations (RBI).
Since Kotak Mahindra Finance Ltd. is the first non-banking finance company in India to convert
itself to a bank as Kotak Mahindra Bank Ltd, this approval has built a banking background.
Today, it is one of the fastest growing banks and one of India's most respected financial
institutions. The bank has over 323 branches and a stable of over 2.7 million customer accounts.
It is redefining the scope and strength of banking in India, not only in the metros, but in Tier II
cities and rural India as well. It is currently active in commercial banking, inventory broking,
mutual funds, life insurance and investment banking. This addresses the economic needs of
individuals and businesses. Via its subsidiaries in London, New York, Dubai, Mauritius, San
Francisco and Singapore, the bank has an international presence, specializing in the provision of
services to foreign investors wanting to invest in India.

PRODUCT PORTFOILIO: KOTAK MAHINDRA BRAND

Kotak Mahindra, India's leading financial services group has been an all-out stop for all financial
and banking needs. It provides all forms of personal finance options, including credit card
deposit plans, the distribution of mutual funds and life insurance policies. Kotak Mahindra Bank
conducts vertical lending, handles IPOs and operates capital loans. Kotak Bank has one of India's
biggest and highly valued wealth management teams and is the provider of the most wide set of
net worth solutions for individuals, companies, enterprises and employees.

The Products are categorized under Personal Banking, Business Banking, Wealth Management
and Corporate financial solutions. They serve following products:
  BANK ACCOUNTS:

Kotak Mahindra Bank provides its customers a wide range of bank account solutions to
satisfy their unique requirements. The choices are limitless, from Personal current to business
current accounts and savings accounts beginning with premium saving, starting with basic or
daily accounts and online saving account moving to off-line accounts, to accounts for
children to senior citizens. In comparison, the rate of interest on the savings account of Kotak
Mahindra Bank still beats most of its contemporaries. There are five types of accounts that
the bank has categorized in which are Savings account, Current account, retail institutional
account, corporate salary account and Bank+Demat+Trading Account. The Bank provides 12
different types of savings accounts and 10 different types of current accounts in order to meet
various diverse needs of the customer. The following table shows all the types of bank
accounts that Kotak Mahindra Bank offers in as per the need of the customer:

SAVINGS CURRENT CORPORATE RETAIL BANK+DEMAT+

ACCOUNT ACCOUNT SALARY INSTITUTIONAL TRADING
ACCOUNT ACCOUNT ACCOUNT

1.811 Digital Startup Uni Account Retail Institutional Trinity Accounts

Bank Account Premium Savings Account
Current
Account
2.811 Edge Startup Public Services Retail Institutional
Digital Bank Regular Salary Account Current Account
Account Current
Account
3.Edge Neo Current Ace Salary
Savings Account Account
Account
4.Pro Savings Pro Current Platina Salary
Account Account Account
5.Sanman Edge Current Neo Salary
Savings Account Account
 Account
6.Classic Elite Current Edge Salary
Savings Account Account
Account
7.Silk Astra 05 Corporate
Women’s Current Benefits
Savings Account
Account
8.Ace Savings Ace Current
Account Account
9.My Family Global Trade
Savings Current
Account Account
10.Nova Astra 15
Savings Current
Account Account
11.Grand -
Savings
Program
12.Alpha -
The Savings
& Investment
Program

 DEPOSITS:

The Bank provides five types of deposits:

Fixed Deposits: Fixed deposit lets idle funds work with some of the highest interest rates in the
banking market. It is available for both personal banking and business banking categories with
different interest rate and schemes depending upon the investment

Features of the Bank’s Fixed Deposit:

1. Deposit amount as low as Rs 5000/-

 2. Flexible interest withdrawal
3. Nomination facility
4. Sweep-in Facility

Fixed Deposit possesses a number of advantages over any other investment like assured return
yielding product, availability of an Overdraft Facility against Fixed Deposit Flexible tenure
options, hassle free online application.

Recurring Deposit: The recurring deposit of the bank provides a percentageinterest rate from
4.40% to 5.25 % with a minimum tenure of 6 months helping people with their incomes
to deposit fixed amount every month into their recurring deposit account 

Features of KOTAK MAHINDRA Bank Recurring Deposit:

1. Minimum Tenure of Recurring Deposit will be 6 months and in multiples of 3 months up

to a maximum of 10 years

2. Easy payment options from saving account

3. Competitive interest rate

4. Returns help in Educational, housing or annual payments

Tax Saving Fixed Deposit: This FD saves tax under Under Sec 80C on an amount between Rs.
100 to Rs. 1.5 Lakhs. Other ace features include quarterly receivable interest and booking period
between 5 to 10 years.

Other Deposits are Senior Citizen FD specially designed for senior citizens for lower deposits till
Rs. 5000/- and Ace FD for higher return opportunities.

 CARDS:

The Bank avails three types of cards: Debit Cards, Credit Cards, Forex/ Prepaid cards. There are
20 different credit cards offering a huge variety of deals over dining, movies, lifestyle, travel, etc.
specifically divided into giving cashback, high value, higher rewards, commercial use, low fees
and other rewards catering different needs of the customers. Similarly they provide 17 different
debit cards designed for different needs like unlimited withdrawals, different withdrawal and
purchasing limits, cashback specific, reward specific and many more. There are 6 prepaid/forex
cards that can be used for variety of purposes either for loading multiple currencies for forex
purposes, FastTag card or gift cards etc.

 LOANS:

The loans offered by the bank can be classified into personal banking and business banking
which is as follows:

Classification of Loans at Kotak Mahindra Bank

Personal Loan Business Loan

Home Loan GECL Loan

Car Loan Business Loan

Personal Loan Loan Against Property

Pay day Loan Commercial Vehicle

Gold Loan Construction Equipment

Against Security Farm Equipment

Against Property Crop Loan

Consumer Finance Agri Project

 Insurance:

The Bank provides Life, Health and Motor Insurance schemes. Under Life Insurance, they bring
forth Personal protection plan, Retirement Plan and Child Plan. Under protection plan there are
three schemes namely Kotak Term Plan which provides a financial support till Rs. 24.99 Lacs,
Kotak E- Term Plan which provides a minimum assurance of Rs. 25 Lacs and above and Kotak
Income plan which provides monthly income over the increase of the policy term period in order
to secure future.

Under the Retirement plan they provide seven retirement plans based on the affordability; Kotak
Assured savings plan, Kotak Assured Income Accelerator plan, Premier Pension plan, Premier
Life Plan, Kotak Ace Investment, Kotak Invest Maxima and Kotak Platinum plan.

Under Health Insurance, Kotak Health Premier and Kotak Secure Shield are provided covering
in patient treatment, Pre and post hospitalization medical expenses etc. Motor Insurance for both
Car and two-wheeler is given.

They also come under government schemes which are Pradhan Mantri Jeevan Jyoti Bima Yojana
for a life insurance cover of Rs. 2 lacs at Rs. 330 per annum, Pradhan Mantri Suraksha Bima
Yojana for accidental covers with nominal premiums and Atal Pension Yojana as a post
retirement pension plan.

 Investments:

Kotak Mahindra also provides other investment plans like Mutual Funds, Kotak ASBA facility,
National pension system, Portfolio management service, sovereign gold bonds which help people
invest in IPOs/ Bonds.

The Bank also offers Working Capital Finance and businesses can apply for Channel finance,
Dealer finance, Infrastructure, Transportation, Logistics and Warehouse Finance and
Agricultural Finance.

KOTAK MAHINDRA BANK LTD.

Kotak Mahindra Bank ltd. is an Indian private sector bank headquartered in Mumbai,
Maharashtra. According to market capitalization, Kotak Mahindra Bank is the second largest
private sector bank in India as of April 2019. It had 1600 branches and 2519 ATM’s in India. It
was starts as a financial services conglomerate by Uday Kotak in 1985, and Kotak Mahindra
Finance Ltd. received its banking license in 2003 from Reserve Bank of India and became first
non-banking finance company to be converted into a bank. It provides banking products and
financial services for retail and corporate consumers in the areas of personal finance, wealth
management, investment banking as well as life insurance products.

This new normal has led to decline in the country economy and has affected different sectors in
the economy. Banking has been one of the major sectors which got affected but at the same time
this has also been the growth driver for the country GDP. Kotak has been also facing issues in
this critical situation of new normal but the 3 P’s strategy of bank help them to survive in this
situation and perform to satisfy the requirements of the consumers.

Preserve: Kotak has solid and stable position because of its strong capital structure which
provides resilience to face the crisis. It focuses on transparent and diversified business model
which will drive the organization in these tough waters.

Pioneer: They aspire to pioneer new technologies to achieve the desired goals by creating new
routes and changing the world. Digital banking which was developed in past few years has really
helped the company to operate in this Covid situation. Prosper: The focus is to face the storm and
prosper the opportunities beyond this tough situation.
 Marketing Mix / 7P’s of Kotak Mahindra Bank

Product Strategy:

The product strategy of Kotak Mahindra Bank is as follows:

Kotak Mahindra Bank is one of the leading and growing banks in India. They have many
business verticals as a part of their product mix: Personal Banking, Business Banking,
Commercial Banking, Consumer Banking, Corporate Banking, Wealth Management etc. Kotak
Mahindra offers many unique and specific programs to match different needs and wants of their
customers like:

 Silk: which is a savings program for women.

 Edge Saving Account: Jifi accounts.
 Kotak 3-in-1 account: Junior account to promote savings among minors starting at a young
age.

Various Classifications of Products Offered by Kotak Mahindra Bank:

Classification of Accounts at Kotak Mahindra Bank

Personal Accounts Business Accounts

Saving Current Account

Coorporate Salary Salary2Wealth

Retail Institutional Goverenment Business

Bank+Demat+Trading

Safe Deposit Locker

 Classification of Loans at Kotak Mahindra Bank

Personal Loan Business Loan

Home Loan GECL Loan

Car Loan Business Loan

Personal Loan Loan Against Property

Pay day Loan Commercial Vehicle

Gold Loan Construction Equipment

Against Security Farm Equipment

Against Property Crop Loan

Consumer Finance Agri Project

 Classification of Deposits and Cards at Kotak Mahindra Bank

Deposits Cards

Fixed Deposits Credit Cards

Recurring Deposits Debit Cards

Tax Saving FASTag/Forex/Prepaid

Cards

Senior Citizen

Sweep in Facility

Classification of Insurance and Investments at Kotak Mahindra Bank

Insurance Investments

Life Insurance Mutual Funds

Health Insurance Portfolio Management
Service
Motor Insurance
Pradhan Mantri Jeevan Sovereign Gold Bond
Bima Yojna Scheme
Pradhan Mantri Demat Account
Suraksha Bima Yojna
Atal Pension Yojna Kotak ASBA Facility

National Pension System

Price/Pricing Strategy:

Kotak Mahindra Bank’s pricing strategy is as follows:

Kotak Mahindra Bank faces hard competition from other banks like HDFC Bank, Axis Bank,
IndusInd Bank, ICICI Bank, etc.

The banking private sector has reduced competition in order to show the best consumer service,
appropriate interest rates and comfort. Kotak Mahindra Bank is following a competitive price
policy to help and attract more customers. Kotak Mahindra Bank provides fixed deposits interest
rate, which is equal to their rivals, is 6.90%.

Place & Distribution Strategy:

The distribution strategy or place mix of Kotak Mahindra Bank is as follows:

Kotak Mahindra bank is present in 675 areas with 2000+ ATMS. It is home to more than 1600
branches. Kotak Mahindra Bank's reach is lower than its rivals such as HDFC, who are leading
in the industry where public sector banks like Punjab National Bank are also has a more
widespread than Kotak. But still Kotak Mahindra is third largest in the industry, and its physical
footprint in the world and the nation is continuously enhancing.

Kotak Mahindra Bank also provide flexibility to their customers keeping in mind the evolution
of smartphones now a day, they are easily accessible on smartphone with its recently launches
mobile phone app called Kotak Bharat Banking App.

Promotion & Advertising Strategy:

The marketing plan of the Kotak Mahindra Bank comprises the following promotional and
advertisement strategy:

In 2011, Kotak Mahindra Bank turned 25 and initiated a 'Youthful campaign’ on the occasion of
their 25 years’ completion. Kotak introduced 10 seconds of commercial television and print
commercials. The campaign addressed how money can create self-esteem and maintain stability.
Kotak Mahindra bank has also created Subbu, who becomes the voice and character of the brand,
who addresses the various items the bank provides through channels such as TV, prints and
digital technology. Kotak Mahindra Bank may also advertise through hoardings.

People Strategy:

Kotak Mahindra is the third largest bank in terms of market capitalization which has a large
circle of associated employees and customers explained below:

Kotak Mahindra Bank employs over 70,000+ people, who serve nearly 23,000,000 clients. The
integration strategy called "One Team One Dream" was initiated to ensure unity and cohesion
between employees by ING Vysya and Kotak Mahindra Bank after the merger. A fair code of
ethics is in effect to direct workers regardless of color, caste, ideology and financial standing.
Kotak Mahindra Bank is dedicated to financial inclusion and therefore has banking programs,
where banks are badly infiltrated.

Process Strategy:
Since the world is towards digitalization and single window system, Kotak transforms their
structure and almost offer every product from their portfolio online to their customers.

The employees of Kotak Mahindra Bank follow well-defined procedures to achieve their
customer quality. They have a fully organized online structure where any one can avail any of
Kotak’s products and services without physically visiting bank and they have an online forum for
their customer’s queries and complaints that can be easily reached via the bank's website. Kotak
Mahindra Bank has also collaborated for ecommerce captivity with bookmyshow.co, Ola, Bata,
Snapdeal, etc.

Physical Evidence Strategy:

Physical Evidence Strategy of Kotak Mahindra Bank is as follows:

Kotak Mahindra has received various awards for their creative services, such as hashtag banking,
tab banking for workers for instant alerts and for more effective activities. Some of the awards
won by Kotak Mahindra Bank are:

 STP Award 2014 for Outstanding Payment Formatting

 ICAI Award 2015
 Best Retail Growth Performance
 AIMA-JRD Tata Corporate Leadership Award

Market Segmentation
Market segmentation is basically done to divide the market into smaller units or segments which
includes those who have similar tastes and preferences.

For Kotak Mahindra Bank the segmentation is based on these following 5 factors-

 Non-Customers- These are those customers who have never taken the services of that
bank before. Customers of other competitive banks or those who are young and are yet to
build their very first relationship with the bank are the prime customers in this segment.
For banks these are the important customers up on which they focus the most because
through this they can expand their business and grow over time. The customers of
competitive banks will be highly interested in the special schemes or offers if they are not
 satisfied with their current bank services in that way Kotak Mahindra Bank focuses upon
these customers to attract new customers and have new customer base. Similarly,
youngsters are being approached through school-based savings program to achieve their
loyalty in the long-term period.

 Low-Value Customers- Low-value customers comprises of 2 groups, the first group

comprises those who have limited income or those who have limited financial fund
requirements as per their needs. These are the ones who are less profitable to the bank.
Therefore, this segment is less valuable to the bank. The 2 nd group is of those who have
diversified financial products in different financial institutions. This segment is less
valuable to an individual bank therefore the challenge is to ask these customers to invest
their all the financials in one bank.

 Medium-Value Customers- This segment also consists of 2 groups; one is who have all
the major business with the financial institution and therefore have less potential to
become a high valued loyal customer. The second group consists those who have their
major business with the other competitive banks because of special schemes or
preferences.

 High-Value Customers- These are the customers who have larger deposits and loans
with the banks. This segment is in turn more costly to retain because they demand special
offers, schemes, and deals. Their contribution towards the profitability of the bank is
quite high.

 Ex-Customers- This segment consists those customers who are quite inactive or have
stopped using the services of a particular bank. This is the segment which is quite
difficult to re-activate them again because these are the customers who are aware about
all the functionalities and working of the bank and have therefore switched to the other
bank services.
In this way, the segmentation is done which is generated through customer relationship life
cycle. At first the bank tries to attract the customers and after that bank tries to up-sell these
customers and generate greater contributions to make it more profitable.

USP of Kotak Bank

So, don't we? We do have a Unique Selling Proposition (USP), but we have a Unique Banking
Proposition (UBP) for our current and future clients.

And the UBP is very straightforward. We're not only in the deposit acceptance market; we're in
the business of building wealth for our clients. To this proposal, both our internal processes and
sales activities are tuned in. In order to offer value to the customer, the bank is simply a central
hub for customer interactions with other companies located around it. We are sure our UBP is
going to become our USP finally.

And to do this, we create relationships with customers. We want to deal with clients and make
them feel happy with us, so we can provide them with better services and advice. We're a
financial services company, as we keep saying, which is also about banking.

SWOT ANALYSIS

Strengths

 Financial products - Kotak Mahindra offers imaginative financial products in different

categories that exist. In different fields, such as savings, deposits, cards, loans, insurance,
and investment, their financial products exist.
 Excellent customer service - Kotak Mahindra values the customer relationship and is
committed to meeting its banking requirements. This offers different ways to get in
contact with clients, such as telephone banking, online chat, online assistance, and via
their divisions & ATM’s.
 Digital banking - Via internet banking, Kotak Mahindra offers a smart way of banking.
This allows clients to bypass the bank's lengthy queues.
 Rising ability - Kotak Mahindra Bank is one of India's strongest investment banking and
stockbroking franchises, despite a decline in its market share over the past four years.
  Outstanding top administration teams - Kotak Mahindra Bank has been affiliated with
the bank for more than a decade as one of the most stable top management teams. As the
team has been aware of its insights for quite some time, this allows the bank to expand
further.
 Diversified business model - It has across different sectors, such as wealth management,
loans, insurance, capital markets. This allows the company to capture the entire value
chain in the finance sector, helping to sustain steady growth in earnings.
 Vehicle finance - Kotak Mahindra Bank is a market leader in the financing of cars and
commercial vehicles with good experience in these sectors.
 Good client base - It has a strong client base of 2.7 million.
 Other –
1) Kotak Mahindra Finance Ltd. is the first corporation to be transformed into a bank in Indian
banking history.
2) Method of Comprehensive Cash Management
3) Includes over 20,000 staff members

Weaknesses

 Kotak Mahindra, a recent entrant to this market, tends to have fewer entrants to the
company.
 Bad marketing - Kotak Mahindra has a poor marketing strategy with low ads. This leads
to a low scale of operation, rendering its business a big weakness.
 Poor liability franchise - A great franchise is not seen by Kotak Mahindra Bank. The
CASA ratio for Indian banks appears to be the lowest. The bank is in a worse position
with respect to savings deposits.
 Less corporate banking - The bank seems to have a weak presence in corporate
banking.
 Kotak Mahindra Bank has a restricted number of IVR licenses, which could lead to
disruption if the IVR license cap is exceeded.

Opportunities
  Bank with a huge opportunity - There is a rise in demand for banking in the banking
sector, providing the Kotak Mahindra
 Strengthen its liability franchise - By increasing its CASA deposit, the bank will
strengthen its liability franchise. The bank will then broaden its branch network, giving
the bank a huge opportunity to increase its exposure and revenue.
 RBI Act - The RBI's recent deregulation savings act offers an opportunity for the Kotak
Mahindra Bank to get new customers and strengthen its CASA ratio.
 Asset management presence - The bank has the potential to broaden the asset side, thus
growing the market share of corporate banking life.
 Enhancing its business overseas - Kotak Mahindra Bank will increase its prospects by
extending its business to the international level.

Threats

 The slowdown in the economy - If there is a recession with respect to the economy,
there is a major challenge to the business. It's likely that the bank will face a major crisis
in its business.
 Increasing competition in the financial market - There is a major rivalry in the
banking and finance sector where there is a massive commodity that many players sell
out in a specific way. This is a major challenge to Kotak Mahindra Bank, which needs it
to bring innovative products to the market.
 Banking standards - The industry seems to have rigorous banking standards that are
likely to reach the company in some way or the other.

MARKETING STRATEGIES USED BY KOTAK MAHINDRA BANK

Kotak Mahindra Bank has provided its customers with quick, convenient and secure choices and
it is expressed in its tagline that let's make money fast. It recognizes that advertisement is an
important part of every business and has implemented many plans to advertise its services and
merchandise. Ads have been introduced on TV stations and are broadcast to achieve good
exposure on the radio. Hoardings have been set up in common areas so that full exposure can be
gained. Several advertising programs have already been initiated with smartphone and internet
assistance.

ALLIANCES OF NATIONAL ATMS:

The Institute for Banking Technology Development and Research (IDRBT), a group founded in
1996 by the Reserve Bank of India (RBI), has planned to create a national switch to connect all
the country's 10,000-odd ATMs. The knowledge chiefs of different banks have accepted the
concept of creating ATM interconnectivity through a national switch. Due to the large volumes
of transaction, the estimated cost of transactions routed through the switch would be under 10
rupees each.

NET CASH:

It is a collaboration between Citibank, India's Industrial Development Bank, Kotak Mahindra

Bank and UTI Bank. This is the first independent shared ATM network in the world. IDBI Bank
obtained approval to act as the settlement bank of the network from the Reserve Bank (RBI). For
more than 6 million debit cardholders of the affiliate banks, the cash net would have access to
over 1,300 ATMs. About a third of the overall card base and 15 percent of the country's ATM
base will represent the partnership.

The Bank and REDIFF.com:

REDIFF.com India and Kotak Mahindra Bank have entered a relationship to provide the Indian
customer with online and offline banking and related services. The partnership would allow
details on the full range of consumer banking items from banks to be made available to
Rediff.com's 6.4 million online customers. Included in the services provided are

Detailed details about the bank's numerous deposits, loans and mortgages, credit cards, mutual
funds and insurance policies. Users will be able to communicate with the bank directly and to
order items electronically.

HOURS OF BANKING:

The holders of the Kotak Mahindra Bank Account were able to conclude that the second most
common point of contact with the bank was Branch Banking. A very significant factor connected
with every bank is the average banking hours. It is important that they can find a way to visit the
bank without having to miss out on work in today's fast-paced life where people who hold
accounts with the bank are busy working. Kotak Mahindra Bank's average banking hours are
from 9am to 7pm, with the bank available to the public for 10 hours. These timings are
convenient for those account holders who work, particularly those who can visit the bank after
their office ends.

In addition to the Average Banking Hours, Kotak Mahindra Bank provides 24 Hour Branch, 365
Days Branch and Sunday Banking to its account holders. Kotak Mahindra Bank is the only bank
in India that operates a 24-hour branch, which is a huge boon for people who do not take the time
out during regular working hours to visit the bank and are also very helpful in emergencies.
Kotak Mahindra Bank's 365 Day Branch is also exclusive, and ABN Ambro is the only other
bank providing this operation, which is open regardless of whether it is a Sunday or a public
holiday. Sunday banking is convenient for individuals who are busy during the week and Sunday
is the only day they have the opportunity. Apart from Kotak Mahindra Bank, other banks
providing this service are ABN Ambro and CITIBANK BANK.

Best Compliments Wallet:

The ideal gift: It is a Kotak Mahindra Bank prepaid card. It enables your loved ones to pick or
enjoy their own gift or shop at some. May it be a shopping Centre, a restaurant or a multiplex, a
location that takes Visa cards. Then go ahead, go ahead, to give the ultimate present to
everybody!

 No need of Kotak Mahindra Bank account

 Not exclusive to a single outlet or brand
 Accepted in over 3 lakhs of Indian merchant establishments accepting Visa cards can be
used
 For the ease of you
 No reason to spend the whole lot on a single order.
 Packaged attractively and ready-to-gift
 Available at all branches of Kotak Mahindra Bank
 Valid for two years from the date of card issuance
SUCCESS STORY

Kotak Mahindra Bank is considered to be India's third-best private sector bank.

Over the years, Kotak has diversified its financial advisory business into various financial
services markets, building a strong presence in investment banking, mutual funds, stockbroking,
bill discounting, automotive finance, and life insurance.

Uday Kotak(MD and vice chairman of Kotak Mahindra Bank) strong belief that trusts is the key
for any financial services; later, he collaborated with the Mahindra Group and brought int the
new name ‘Kotak Mahindra.’

Kotak Mahindra Finance Ltd obtained a banking license from the Reserve Bank of India on 22nd
March 2013. This is the first non-banking finance business in India in India's banking history to
be given a banking license and converted from an NBFC into a bank.

Uday Kotak launched Kotak Mahindra Asset Management company and entered the mutual fund
market in 1998.

In 2000, He tied up with a pan-African investment, Banking, Savings, insurance Group, Old
Mutual Limited and start life insurance business in India.

Uday ended the partnership with the Goldman Sachs by acquiring its 25% stake in two
subsidiaries for $72 million in 2006. Kotak collected INR 30 lacs to start an NBFC in 1980 for
bill discounting. His investment in Hutchison Essar of INR 2 crore investments in 1998 fetches
him INR 1019 crores in 2006.

Kotak Mahindra Bank has evolved to offer several financial assistance such as commercial
banking, asset reconstruction, investment banking, mutual funds, insurance, and more.
In 2014, Kotak turned a bill discounting company into a conglomerate of financial services and,
by market capitalization of more than 1270 branches, became the 2nd largest planned
commercial bank in India.

In 2015, Kotak Mahindra Bank partnered with the telco-giant Airtel to launch a small payments
bank and entered into general insurance.

Uday Kotak net worth is $20 billion.

Direct Impact of Covid-19 on Indian Banking System

Customer Service Advice: - Due Covid-19 large number of consumers of bank products are
shifted towards online and digital banking due to which there is huge requirement for customer
care services. This change is not temporary because once the customers are use to off online
services there is no going back so the banks are looking forward to effective online customer
care services which will boost the growth of private banks.

As we all know before Covid-19 most of Indian’s population was not use to of Online Banking
but due to Covid-19 most of the consumers have shifted to digital banking so, this increased the
burden on current customer care services which in turn increase in demand so, banks are
increasing their customer care service workforce to provide knowledge about online banking for
making the experience of customer satisfactory.

Credit Management: - As we all know, government has provided relief packages for the people
whose businesses are affected due to Covid-19 and who have suffered job losses. Not only this
RBI has also provided moratorium and other measures to help the economy and people to cope
up in these difficult times. Still the banks are thinking that they will suffer more loan payments
delays and other difficulties which is quite obvious because the Covid-19 has impacted our lives
so much it is not easy for government alone to deal with situation.

So, banks are planning a effective system through which they can identify that who needs help in
real and what they can do for him so that overall the economy can come out from the difficult
times as soon as possible.
Revenue Compression: - Income from retail and business banking is falling strongly, as basic
consumer revenue from retail and business banking is falling pointedly, as hidden utilization and
exchanges have seen an outstanding plunge. While national banks far and wide cut loan fees,
banks are diminishing respects produce business, in this manner essentially lessening net revenue
edges. Pay from installments and other expense based administrations are hit by an overall
decrease in financial action. With measures like ban periods gave on advances, banks' income
have likewise taken very slow pace and exchanges have seen a remarkable plunge. While
national banks the world over slice loan costs, banks are diminishing respects produce business,
along these lines altogether decreasing net revenue edges. Pay from installments and other
expense based administrations are hit by an overall decrease in financial movement. With
measures like ban periods gave on credits, banks' capital have additionally endured a shot.

There is little that banks can to do to stop the general drop in income, however they can make
more efforts in making installments more secure by expanding limits on contactless installment
channels and instructing buyers on computerized wallets. Banks can likewise give cashback and
dedication awards to support spending in areas that need it the most.

Operating Model Adjustments, Cost Elasticity and Innovation: Throughout the following not
many quarters, the financial area will confront a misalignment between momentary expenses and
incomes because of the monetary effect of COVID-19. Banks would have to survey and organize
current activities to guarantee distribution of assets to the most squeezing needs. Banks ought to
likewise zero in on putting resources into regions that will outlast the current pandemic,
including tasks and activities that keep up or improve the client experience, for example, a
paperless utility, start to finish advanced warning and loaning abilities, expanded extortion and
online protection examination and identification, and so on.

These new digital changes will make banks more productive and versatile to future changes.
Banks that haven't zeroed in on distant working and virtual coordinated effort in the past ought to
investigate setting up flexible tasks. This will safeguard banks against such uncommon
lockdowns and maybe better oversee cost overheads.
EFFECTS OF COVID ON KOTAK BANK

 The Covid – 19 outbreaks and the following lockdown has obviously hit every sector of
the economy. So there’s no doubt that banking sector hasn’t been effected by it. And of
course the Kotak bank has seen the worse.

 To overcome the challenge, the Kotak bank has started 811 accounts through which the
new customers can also open accounts within in 5 minutes while sitting at their homes.

 Kotak bank was one of the leading bank in providing maximum and quality digital
services to its customers.

 Kotak is using these difficult times to strengthen its digital core and to provide best and
convenient services to their customers.

 The rigid task for Kotak Bank is to protect its balance sheet which was at Rupees 3.23
trillion as of December.

 Kotak Mahindra bank ltd.’s stock was down 23% year to date.

 There was a surge in slippages, a sharp hit on profits and a long drawn recovery that
could take six- nine months.

 There was a balance of probabilities favour the downside as the second and third order
effects of the dislocation unfold.

 Addition to all this Kotak Bank has to worry about its unsecured personal loans.

 As loans to commercial realty were 2.1% of its total loan book as of December and lease
rental discounting was another 1.6%. Secured home loans and loan against property were
21% of total advances.
  It has announced a 10% cut in CTC for all employees earning above Rs 25 lakh per
annum.

 Its quarterly profit fell as the private lender increased provisioning to mitigate the
potential impact of Covid – 19 pandemics.

 The banks profit declined 8.51% year on year to Rs 1244.5 cr in three months.

 Asset quality detoriated in the first quarter of the financial year 2020-21. Its gross bad
loan ratio rose to 2.7% from 2.25% in the quarter ended March. While NPA ratio
increased to 0.87% from 0.

DIFFERNTIATOR

Focused on building a stable, retail deposit base. As on 31st March, 2020, CASA ratio stood at
56.2% of total deposits – among the highest in the industry. CASA and TDs below ₹5 crore
constitute 86% of total deposits.

 Expanded its footprint in Home Loans and Loans against Property (LAP) to cover over
150 cities and towns across India. Grew its market share in consumer finance by 124% on
a YoY basis, and saw strong 26% YoY growth in credit card spends.
 Awarded the ‘Best Corporate & Investment Bank – India’ by Asiamoney for the third
time in the past four years.
 With over 20 years of experience of the Kotak Group in the wealth management industry,
it has seen different market cycles and has maintained its leadership position due to its in-
depth understanding of clients’ requirements, asset classes and the risks associated with
each.
 Employee engagement score of 73, among the best in the industry, accompanied by
significant reduction in attrition trends, accompanied by significant reduction in attrition
trends.
 Customer Relationship NPS score of +10 as on December 2019.
 Second-highest growth in AUM among private sector Pension Fund Managers of 19.6%
YoY.
 Total AUM in NPS fast approaching ₹1,000 crore (` 976 crore as on 31st March, 2020