A REPORT

ON
COMPARATIVE ANALYSIS OF RETAIL TRADE
SALES

BY
AARTI NAINWANI

09BS0000013

KOTAK MAHINDRA BANK

 A REPORT
ON
COMPARATIVE ANALYSIS OF RETAIL TRADE
SALES
BY
AARTI NAINWANI
09BS0000013
KOTAK MAHINDRA BANK

A REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF
THE REQUIREMENTS OF
MBA PROGRAM OF
ICFAI UNIVERSITY, DEHRADUN

DISTRIBUTION LIST:
DATE OF SUBMISSION: 15TH OF MAY 2010

DECLARATION

I Aarti Nainwani, here by declared that the project entitled

comparative analysis of retail trade sales "which is being

submitted in partial fulfillment of the requirements for the

awards of degree from the ICFAI Business School is an own

record carried out by me under the supervision of Mrs. Sejal

Desai & Mr. Nikunj Saraiya Associate Vice President and Senior

Manager, (KOTAK BANK) The matter embodied in this project

has not been submitted so far for the award of any degree or

diploma.
 ACKNOLEDGEMENT

The special thanks goes to my helpful supervisor Mr. prof. Wag.

The Supervision & support that he gave truly help the

progression & smoothness of internship program.

The co-operation is much indeed appreciated.

My grateful thanks also go to both Mrs. Segal Desai (U.P) & Mr.
Nikunj. Samaya. A big conclusion from both of you during these
14 weeks is very great indeed.
TABLE OF CONTENTS

Declaration
Acknowledgement
EXECUTIVE SUMMARY
History of Banking
Banking Systems in India
Kotak Mahindra Bank
Objective
Reserve Bank of India
Hierarchy of RBI
Competitors
MAJOR TRADE PRODUCTS PROVIDED BY
KOTAK MAHINDRA BANK
LETTER OF CREDIT
Graphs
Findings
CONCLUSIONS & RECOMMENDATIONS
References
Annexure
QUESTIONNAIRE
EXECUTIVE SUMMARY

The service industry is one of the fastest growing sectors in

India today. Tlie upcoming sectors, which are really showing the

graph towards upwards, are Telecom, Banking, and Insurance.

These sectors really have a lot of responsibility towards the

economy. Main focus of this report is based on of the

COMPARATIVE ANALYSIS OF RETAIL TRADE SALES Kotak

Mahindra is one of India's leading financial institutions, offering

complete financial solutions that encompass every sphere of

life. From commercial banking, to stock broking, to mutual

funds, to lite insurance, to investment banking, the group caters

to the financial needs of individuals and corporate. The project

report gives an insight about the trade products of Kotak

Mahindra bank and throws the lights upon the SWOT (Strengths,

weakness, opportunities, threats) analysis of bank.

 HISTORY OF BANKING
How did banking originate? What activity resulted in
Banking, as know it today? To answer these questions it
is necessary to step back into history – to several
thousands of years and study its origins.

Barter
Man was, in the dawn of history, simple and self-
sufficient. He lived in caves, killed animals when hungry
and he had no other wants. As time passed, men began
living in villages and started to till the ground. Often the
produce of a farmer’s fields was more that he required.
Similarly, a fisherman often caught more family
required. In the ideal situation, the farmer would
exchange his produce for fish with the fisherman. This
exchange is known as barter. And in the ideal world they
would both be content. The ideal situation, the farmer
would exchange his produce for fish with the fisherman.
This exchange is known as barter. And in the ideal world
they would both be content. However, a complication
could and would arise if the farmer did not require or
want fish. If the farmer required a plough and the smith
requires steel there would be tremendous and
horrendous difficulty in matching those that individuals
had with that which they needed. And it was on account
of this difficulty of meeting needs that the barter system
surrendered to money.

Money
Money was created or rather born to reduce the value
the items people had to a common denominator to
facilitate exchange of products to satisfy needs. The
Fisherman would sell his fish as would the farmer for
money. The farmer would then armed with the money he
has in hand purchase a plough. The fisherman with the
money he received, would buy the food he needs for his
family.
The earliest form of money was bones on which marks
were made to distinguish between values. Metals then
began to be used – the most popular being gold, silver
and bronze. As men began to travel from country to
country to exchange goods and to trade, banking was
born.
The term money is derived from the temple of “Juno
Moneta”
Money he has received, would buy the food he needs for
his family.
The earliest form of money was bones on which marks
were made to distinguish between values. Metals then
began to be used – the most popular being gold, silver
and bronze. Symbols, sizes and signs on these differed
from time to time and from goods and to trade, banking
was born.
The term money is derived from the temple of “Juno
Moneta” which was used by the Romans as a mint for
their coins.
BANKING
Banks were born to facilitate trade – to lend monies to
purchase goods, to store monies and to change
currencies. Banking began thousands of years ago. The
Assyrians, exchanging foreign coins and making loans –
mainly in connection with trade. Temples such as those
of Ephesus and Delphi were Greek banking institutions.
The Romans did not have State Banking but had minute
regulations regarding private banks. These were
calculated to create utmost confidence in the system.
Ancient Rome had two types of bankers – those who
made loans and those who exchanged foreign monies.
The term “bank” is derived from the Italian word
“banco” which means bench. The early bankers, the Jews
of Lombard, transacted their business at benches in the
market place and later in inns and taverns. In those days
if a banker failed, his “bankco” or bench was broken,
hence the term “bankrupt” Another opinion is that the
term “bank” evolved from the German word “back”
meaning a joint stock fund which was
Italianised into “banco” As many of these
inns/taverns were by the signs they had such as eagle,
crossed swords etc.

BANKING SYSTEM IN INDIA

The Banking System in India consists of:

 Reserve Bank

 Development Banks

 Public Sector Bank.

  Foreign Banks

 Private Sector Banks

 Cooperative Banks

 Regional Rural Banks

The Reserve Bank of India

The Reserve Bank of India is the Central Bank of the

Country and came into being by the Reserve Bank of
India Act. 1934. It was nationalized in 1948.
 The Bank that issues and regulates the issue of
currency in India

 The banker to the Government of India and the

State governments. It manages the public debt. It
has obligation to transact the banking business of
the Central Government. It undertakes to accept
money on behalf of the Government and make
payment on its behalf.

 The banker’s bank. Commercial banks

maintain their current account with the
Reserve Bank of India.

 The bank the manages the volume of credit

created by the commercial banks to ensure
price stability.

 The bank that manages the external value of

the currency (Indian Rupee)
  The lender of Last Resort. It will lend to banks
in trouble.

Development Banks

These were set up to five long term finance for the

development of the country. These are the Industrial
Finance Corporation of India and the Industrial
Development Bank of India, The Industrial
Reconstruction Bank of India and the National Bank for
bank of Industrial Bank of India and the National Bank
for Agriculture and Rural Development. A former
development bank, the Industrial Credit and Investment
Corporation of India Ltd. By a reverse merger in 2002,
became a normal commercial bank. It is expected that
the other development banks, having outlived their
utility would also be either converted to commercial
banks or merged with commercial banks.
PUBLIC SECTOR BANKS

These are banks which the Government either owns or

has majority stake in The largest is the state Bank of
India, which was formed by the merger of the Presidency
Banks – the Bank of Bengal, the Bank of Bombay and the
Bank Madras in 1921. It was then Imperial Bank. It was
nationalized or associates.
The other nationalized banks came into being on July 19,
1969 when Mrs. Gandhi’s Government nationalized
fourteen banks that had deposits of Rs. 50 Crores or
more. On April 15, 1980, six more banks having demand
and time liabilities of not less than Rs. 200 Crores were
nationalized. This was done to take banking to the
villages and serve the developmental needs of all
sectors of the economy.

Foreign Banks

These are branches of banks incorporated outside India.

The large ones that have been operating in for many
years are Standard Chartered Bank. Citibank. American
Express bank. ABN Amro. Paribas and hong Kong and
Shanghai Banking Corporation.
In 1995/96 many other foreign banks (optimistic in view
of India’s liberalization) opened branches in India.
However, after banking began to become increasingly
competitive and margins began to squeeze coupled with
large non-performing assets, many banks closed their
branches. These include Dresdner Bank, Comerz bank,
KBC Bank and commercial Bank of Siam.

Private Sector Banks

These banks are not government owned or controlled.

Their shares are freely traded in the Stock Markets.
These may be divided into:
These may be divided into:
 Old Private Sector Banks such Federal Bank,
Dhanalakshmi Bank, Catholic Cyrian Bank

 New Generation Banks such as HDFC Bank, IDBI

Bank, UTI Bank and ICICI Bank. Those have
 permitted to open provided they had a capital of
Rs. 100 Crores.

Cooperative Banks

Cooperative Banks are those that created by a group of

individuals to support either a community or a religious
group. They operate in metropolitan, urban and semi
urban centers to cater to the needs of small borrowers.
These are controlled by the RBI and by State Cooperative
Acts.
In recent years these have been under a cloud on
account as several (particularly in Gujarat and Andhra
Pradesh) collapsed under controversy. They were used
as vehicles by individuals to finance activities which did
not succeed.

Regional Rural Banks

These came into being on October 2, 1975 when 5

regional rural banks were established under what
became the Regional Rural Banks Act 1975 these were to
bridge the gap in rural credit granting loans and
advances to small and marginal farmers, artisans, small
entrepreneurs and persons of small means engaged in
trade, commerce, industry or other productive activities
within their area of operation.

Local area Banks

Local Area Banks came into existence in 1999 and

licences were given for these banks as it was felt that
regular commercial banks were not financial the
rural/agricultural sector adequately. Licences have given
to open branches in there districts. Branches in urban/
scmi urban areas have granted only after ten branches
were established in rural areas/ Villages. Four licences
were in total granted – two in Andhra, one in Punjab and
one in Gujarat. They have opened with an initial capital
of Rs 5 Crores. A Report issued in 2002 has
recommended that the capital should increased to Rs 25
corers and that these be permitted to operate in six
districts.

Kotak Mahindra Bank

Kotak Mahindra is one of India’s leading financial
institutions, offering complete financial solutions that
encompass every sphere of life. From commercial
banking, to stock brioking, to mutual funds, to life
insurance, to investment banking, the group caters to
the financial needs of individuals and corporate.
The Group has a net worth of over Rs. 2,900 Crores,
employs around 8,800 people in its various businesses
and has a distribution network of branches, franchisees,
representative offices and satellite offices across 282
cities and towns in India and offices in New York,
London, Dubai and Mauritius. The Group services around
2 million customer accounts.
In October 2005, Kotak Group acquired the 40% stake in
Kkotak prime held by Ford credit International (FCI) and
FCI acquired the stake in ford Credit Kotak Mahindra
FCKM) held by kotak Group.
In may 2006, Kotak Group 25% stake held by Goldman
sachs in Kotak Capital and Kotak Securities Kotak
Mahindra Bank, one of India’s leading private sector
banks today announced a major landmark – opening of
its 100th full fledged bank branch in Saket, New Delhi.
This is a record feat as kotak Mahindra Bank is the only
private sector bank in India which has reached its 100th
bank branch in just 4 years, a feat that none of the other
private sector banks in India have achieved till date.
Mr. Uday S. Kotak is an
executive Vice Chairman and Managing Ditector at Kotak
Mahindra Bank Limited. He has been with the firm since
August, 2002. Mr. Kotak is the principal Founder and
promoter at Kotak Mahindra Finance Ltd. He is
responsible for the growth of Kotak Mahindra from a
fledgling finance company to a financial institution
providing the full basket of financial services. Mr. Kotak
has over 18 years of experience in the financial services
industry. He is Chairman and Director of Kotak Mahindra
primus Limited. Mr. Kotak is also Director of Kotak
Mahindra Bank Limited. He is a director of Kotak
Mahindra Asser management Company Limited. He is the
Chairman of Kotak Securities Ltd. He is also on the board
of the following subsidiary companies of kotak Mahindra
Bank Limited: Kotak Securities Limited, Kotak Mahindra
Capital Company Limited, and Om Kotak Mahindra Life
Insurance Company Limited. Previously, he has served as
Non Execcutive Director of Blue Star Limited until
October 2002. He is a Member of Advisory Committee of
National Stock Exchange of India Ltd. Mr. Kotak,
received a post-graduate degree in Business
Administration from Jamnalal Bajaj Institute of
Management Studies of Mumbai University

Kotak Mahindra Bank amongst

hewitt’s “Top 25 Best Employers”
Mumbai, April 17, 2009: Kotak Mahindra Bank, One of
India’s leading Private Banks has bagged the Hewitt Best
Employer’s in Indian award for the second time in a row
Mr. Sudhro Bhaduri Executive Vice President-HR, Kotak
Mahindra Bank received the Award. Speaking on the
occasion Mr. Bhaduri Said, “We are indeed very Proud to
be the recipients of the prestigious Hewitt-Outlook
Business ‘Best Employers in India’ Study for the second
time. Our people practices are aligned to our culture and
values and this makes kotak Mahindra Bank a preferred
employer in the industry. Through significant time,
energy and investment in people
Management practices and processes, we have been
able to maintain Kotak Mahindra Bank as one of the Best
Employers in India in 2009.”
An independent Jury comprising of has selected the
Hewitt Best Employer awardees eminent members from
the industry and academic world. The 2009 study also
introduced new research initiatives to evaluate how new
dimensions such as personal Values, CSR, and workplace
diversity impact human capital management for business
growth and witnessed participation from over 230
organizations. The views of over 800,000 employees
have been represented by over 46,000 employees across
India, making this one of the largest employee research
studies conducted in the country.

Some of the important milestones of kotak Mahindra Group

1986: Kotak Mahindra Finance Limited starts the activity of
Bill Discounting
1987: Kotak Mahindra Finance Limited enters the Lease and
Hire purchase Market.
1990: The Auto Finance division is started
1991: The investment Banking Division is started. Thakes
over FICOM, one of India
Enters the Funds Syndication sector
1995:Brokerage and Distribution businesses incorporated
into a separate Company-
Kotak Securities Investment BNanking Division incorporated
into a separate Company- Kotak Mahindra Capital Company
1996: The Auto Finance Business is hived off into a separate
company- Kotak Mahindra prime Limited (Formerly known as
Kotak Mahindra Primus Limited). Kotak Mahindra takes a
significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles. The launch of Matrix Information
Services Limited marks the Group’s entry into information
distribution.
1998: Enters the mutual fund market with launch of kotak
Mahindra Asset management Company.
2000: Kotak Mahindra ties up with Old Mutual plc. For the
Life Insurance business. Kotak Securities launches its on-line
broking sits (www.kotaksecurities.com) commencement of
private equity activity though setting up of Kotak Mahindra
venture Capital Fund.
2001: Matrix sold to Friday Corporation Launches Insurance
Services
2003: Kotak Mahindra Finance Ltd. Converts to a commercial
Bank – the first Indian Company to do so.
2004: Launches India Growth Fund, a private equity fund.
2005: Kotak Group realigns joint venture in Ford Credit;
Buys Kotak Mahindra Prime (formerly knoen as Kotak
Mahindra Primus Limited) and sells Ford credit Kotak
Mahindra. Launches a real estate fund.

Growth Story of kotak Group

Kotak Symbol
 KOTAK PRODUCT LINE

Savings Accounts
Our Saving Accounts are designed to ensure you receive
the benefits of quick & convenient banking transactions
along with options for your money to earn high returns.
The savings account goes beyond the traditional role of
savings, to provide you a range of services from funds
transfer options to online payments of bills to attractive
returns earned through a comprehensive suite of
investment options We have a number of variants of our
savings accounts customized to suit your individual
needs so pick the one that matches your requirements &
sit back to enjoy the Kotak experience!

TERM DEPOSITS

Kotak Mahindra Bank brings you term Deposit at highly

attractive interest rates coupled with special facilities
like Overdraft and Re-investment option.

Features & Benefits

Ease and convenience of operation not a Kotak Bank

customer and wish to apply for term deposit online?
For the first time in India, New To Bank customer can
also apply online for term deposit.

if you are existing customer, you place a term deposit

through phone Banking or Net Banking. What’s more,

you can even renew this deposit by placing an

instruction over phone. Needless to mention, he can do

all this and by walking across into any of our branches.

Liquidity through overdraft of sweep-in facility your

deposit will be available to you should you need them in

case of an emergency. You can avail up to 85% overdraft

against your term by paying 2% above your deposit rate.

This facility is available for deposits above Rs. 50,000 for

a tenure of 181 days or more. You can also choose to link

your term deposit to your savings / current account,

whereby if need be, your term deposit will automatically

be encased to meet your withdrawal requirement.

No penalty on pre-mature encashment In Case your term

deposit is pre-maturely encased, you will earn interest at

the rate prevailing on the date of deposit for the

withdrawn amount.

Nomination facility available you can avail this facility

for each & every accounts. That you open with us i.e.

nominate different persons for different term deposit

accounts. You can choose to change the nominee though

a declaration in the appropriate form to revise the

nomination during the term of the deposit.

In case you are availing the 2-Way-Sweep feature,

nomination, if any, made by you in respect of the

saving / current account for which you are availing this

feature will be deemed to be the nomination for any

sweep TD created pursunt to the Active Money feature

availed by you.

DEMAT ACCOUNT
We offer streamlined, efficient depository that allow you

to hold your shares in convenient, “Demat” formats and

leverage opportunities in the stock market when you

sport them.

Our services include

 Dedicated and trained Customer Care Office to

handle and answer all your queries.

 Highly competitive service charges. For the current

charges on our demat services.

 Three in one account – Demat, Trading, Bank have

all in one account. For details

 Free Online access to your Demat account

 We also cater to the debt requirements of

companies, including the issue of Commercial

paper, Certificate of Deposits, etc, We also provide

a composite Dema account that can hold Equity

 shares as well as Government Securities, Bonds

etc.

LIFE INSURANCE

Kotak Mahindra Old Mutual Life Insurance Ltd.

Kotak Mahindra Old Mutual Life Insurance is a 74:26

Joint venture between Kotak Mahindra Bank Ltd. And

Mutual Plc. Kotak Mahindra Old Mutual Life Insurance is

one of the fastest growing insurance companies in India

and has shown remarkable growth since it’s inception in

2q001.

Old Mutual, a company with 160 years experience in life

insurance, is an international financial services group

listed on the London Stock Exchange and included in the

FTSE 100 list of companies, with assets under

management worth $ 400 Billion as on 30th June, 2006.

For Customer This joint venture translates into company

that combines international expertise with the

understanding of the local market.

MUTAL FUND

Kotak Mahindra Asset Management Company Limited

(KMAMC)
Kotak Mahindra Asset Management Company Limited

(KMAMC), a wholly owned subsidiary of KMBL, is the

Asset Manager for Kotak Mahindra Mutual Fund (KMMF).

KMAMC started operations in December 1998 and has

over 4 Lac investors in various schemes. KMMF offers

schemes catering to investors with Varying risk – return

profiles and was the first fund house in the country to

launch a dedicated gilt scheme investing only in

government securities.

We are sponsored by kotak Mahindra Bank Limited, one

of India’s fastest growing banks, with a pedigree of over

twenty years in the Indian Financial Markers. Kotak

Mahindra Asset Management Co. Ltd., a wholly owned

subsidiary of the bank, is our Investment Manager.

We made a humble beginning in the mutual fund space

with the launch of our first scheme in December, 1998.

Today we offer a complete bouquet of products and

services suiting the diverse and varying needs and risk-

return profiles of our investors.

We are committed to offering innovative investment

solutions and world class services and conveniences to

facilitate wealth creation for our investors.

CAR FINANCE
Kotak Mahindra Prime Limited (KMPL) is a subsidiary of

Kotak Mahindra Bank Limited formed to finance all

passenger vehicles. The company is dedicated to and

retail customers. The Company offers car financing in

the form of loans for the Inventory funding to car dealers

and has entered into strategic arrangement with various

car manufactures.

HOME LOAN
Why are home loans the best way to materialize your

dream? The reasons are simple and straight-forward.

The decision to by a home is one of the biggest financial

decisions that an individual takes. There are many

concerns that an individual grapples with while

considering his requirements, because a home often

truly represents the wholeness of his personality and

aspirations. Whatever the purpose of buying a home is-

whether it is place to reside in, an investment in

property to avail capital appreciation, or a source of

rental income, availing home loan is today the most

convenient and best way to realize one’s dram.

At Kotak Mahindra Bank, we offer highly customized

facilities of availing home loans. Importantly, we appoint

a dedicated manager who takes customers through the

entire process, Starting with the filling in of the

application forms and culminating in the loan

disbursement process. This otherwise difficult process is

made simpler and more convenient for the customer.

Sometimes, Customers are unable to spare that extra

time from their hectic schedules, and the Bank Doorstep

Service makes the home buying process seamless and

pleasurable. A relationship that is happy from the start

is extended through the attention the customer gets

through his loan repayment tenure and beyond.

Features & Benefits

The key advantages of Kotak Mahindra Bank Home Loans
are:
• High Eligibility for Businessmen

• Doorstep Service

• Attractive Interest Rates

• Simplified Documentation

• Insurance Options to cover you’re your Home loans

at attractive premium

• Quicker Turnaround time

PERSONAL LOAN

Our quick and easy personal Loans are called jaldi Loans.
Personal Loans help to make a difference in your life. No
matter what your financial needs are-unexpected
expenses, Whatever the occasion, our range of personal
Loans can help.
The procedure is simple, documentation is minimal and
approval is quick.

Features and Benefits

Avail loans from Rs. 50,000 – 50 lakh*: You avail of a loan

from Rs. 50,000 -50 Laks* for any purpose based on your

income and repayment capacity and fulfill all your

financial needs.

Quick approval: With a jaldi Loan, you are not far away

from making your dreams come true. In as less as 72

hours your can turn your dreams into reality.

Minimal paperwork & hassle free processing: Our

minimal document requirements leave you tension and

hassle free. Additionally, worries are kept at day, as no

security or collateral is required.

Flexible repayment Our flexible loan tenors range from

12-60 Months for salaried customers and 12-36 Months

from businessmen / Professionals, which don’t’s

overburden you with a worry to pay heavy EMLs.

Convenience of service at your doorstep: Our Jaldi Loans

are just a Phone call away; you can fix an appointment

with any of representatives and they could you in all

your loan formalities.

Customer Privileges:

 If you are a Kotak Mahindra Bank account Holder,

we have special rates for you.

 If You are an auto / personal / home loan customer

are a credit card holder or paying an insurance

premium or enjoying an OD/CC facility avail of

instant loans without income documents.

 If you’re an existing Kotak Mahindra Bank personal

Loan customer with a clear repayment of 12 months

or more, we can top-Up your personal loan.

COMMERCIAL LOANS

First Group (FG) represents the asset arm of kotak Bank

which offers a one stop for all financial needs of

customers of Transportation, Logistics, Infrastructure,

and Tractor Industries.

Though our varied products, we commit ourselves to

becoming “banker” to the customer rather than being

“asset financier” to our customers.

The First Group’s services offered include:-

PRODUCT PORTFOLIO

 Commercial Vehicle Financing

 Infrastructure Financing

 Tractor and Farm Equipment Financing

 SARAL Loans

 Working Capital Financing

GOLD

Kotak Mahindra Bank brings you Gold eternity, 24 Carat

pure Gold coins and bars, carrying a 99.99% Assay

Certification, signifying the highest level of purity as per

international standers.

• Manufactured in Switzerland by PAMP, one of the

world’s premier gold refiners and a brand
recognized world wide as a guarantee of excellence
and quality

• Certified by one of the top assayers in the world

 • Tamper proof packaging to ensure the purity of the
gold bar

• Unique number on every certicard, with records

maintained in Switzerland

• Competitive pricing based on daily pricing in the

international bullion market

Kotak Gold Eternity come to you in varied

denominations. You can choose from a range of
coins and bars in 5 gm, 8gm, 20gm, 50gm and
100gm.

Current Account

At Kotak Mahindra Bank, we know how critical it is for

your business to have quick and timely access to funds.

We understand how important smooth and seamless

banking transactions are for business relationships.

Our Current Accounts Have been designed to help you

compete effectively in the contemporary business

environment. They include a 2 Way Sweep feature that

delivers liquidity combined with higher returns.

Features and benefits

 Minimum Account Balance required is Nil

  2 Way Sweep for liquidity and higher returns

 Free-up country cheque collection for 13 locations

 Personalised Cheque Book

KOTAK CREDIT CARDS

Fortune Gold Card

Interest Free Cash Withdrawals

Zero Charge EMI
2.5% Fuel Surcharge Waiver
0% Balance Transfer
Free for Life

Trump Gold Card

10% Cash Back Across All Restaurants

10% Cash Back on Movies and plays
2.5%Fuel Surcharge Waiver
Free for Life

League Platinum Card

Exclusive Dining Benefits at the Taj

Auto encashment of Reward Points
SMS us and we will Reach you
Lost or stolen card fraud cover

Royale Signaturs Card

Special Concierge services to assist you

Enjoy golf privileges worldwide
Auto encashment of Reward points
Lost or Stolen card fraud cover
Exclusive dining benefits at the Taj
Project at Glance:
“COMPARATIVE ANALYSIS OF KOTAK MAHINDRA BANK
TRADE PRODUCTS WITH ITS COMPETITONS”
Objective:
The main of the present study of is accomplish the
following objective.
  Proper understanding and analysis of banking
industry.

 To know about brand awareness of kotak Mahindra

bank and customer’s Preference about Kotak
Mahindra Bank.

 Conduct marker survey on a sample selected from

the customer and derived opinion on that research.

 Along with it I will be gaining the thorough

knowledge of banking sector. This will given me in
more confidence in marketing products given to
me.

 As the Kotak Mahindra Bank well reputed bank in

India it’s great chance for me to observed different
products launch by other companies Like ICICI
Bank, HDFC Bank etc.

RESERVE BANK OF INDIA

Establishment

The Reserve Bank of India was established on April 1,

1935 in accordance with the provisions of the Reserve

Bank of India Act, 1934.

The Central Office of the reserve Bank was initially

established in Calcutta but was permanently moved to

Mumbai in 1937. The Central Office is where the

Governor sits and where policies are formulated.

Though originally privately owned, since nationalization

in 1949, the Reserve Bannk is fully owned by the

Government of India.

Main Functions

Monetary Authority:

 Formulates, implements and monitors the monetary

policy.

 Objective: maintaining price stability and ensuring

adequate flow of credit to productive sectors.

Regulator and supervisor of the financial system:

 Prescribes broad parameters of banking of banking

operations within which the country’s banking and
financial system functions.

 Objective: maintain public confidence in the

system, protect depositors interest and provide
cost-effective banking services to the public.

Manager of Foreign Exchange

 Manages the Foreign exchange Management
Act, 1999.
  Objective: to facilitate external trade and
payment and promote orderly development and
maintenance of foreign exchange market in
India.

Issuer of currency:
 Issues and exchanges or destroys currency and
coins not fits circulation.

 Objective: to give the public adequate quantity

of supplices of currency notes and coins and in
good quality.

Developmental Role
 Performs a wide range of promotional functions
to support national objectives.

Related Functions
 Banker to the Government: performs merchant
banking function for the central and the state
governments; also acts as their banker.

 Banker to banks: maintains banking accounts of

all scheduled banks.
 Hierarchy of RBI

MARKETING OF KOTAK
Marketing at Kotak Mahindra Banki categorizes in to four
departments – Marketing Communications, Corporate
Communications, Marketing Activation & Marketing
Operations. These departments act as an advisory and
support channel towards marketing strategies and PR
planning to ensure effective brand building through
brand awareness and visibility. The objective is to
implement effective campaigns and promotions which
would help in meeting the business targets and getting
media coverage for the same.
We provide support at two broad levels – Branch
Marketing and Central Marketing
Marketing Activation
All marketing activities done of any marketing collaterals
for the branches. Branch centric PR & outdoor support
also comes under the branch marketing.
Promotion Documents
Promotion Proposal
Please fill the promotion proposal once the branch
finalizes a promotional activity
Provide a description of the activity that you wish to
undertake.
Please mention if any special Offers like AQB waiver etc
are required. (For all AQB related offers approvals from
Amit Pathak, & Amresh Mohan are necessary).
Other details like Venue, activity period needs to be
filled in correctly.
If you need any marketing or promotion material please
specify the correct quantity detail out planned cost
break up for any sponsorship or manpower that you
need for the activity.
Give the planned promotion in form of planned leads and
conversions. We can then match them with the actual
leads and conversions post the activity.
Branch manager of any relevant authority needs to
approve the activity.

To download a copy of a promotion proposal please click

here
Promotion Codes
Promotion codes are generated to track the efficiency of
the activity. Marketing generates the code the activity is
approved.

Marketing Communications
Marketing Communications takes care of the creation,
rollout and analysis of all national campaigns at the
brand product level. This includes doing various brand
and product campaigns as well as researches to monitor
the growth of the brand and the campaign deliveries.
This department also takes care of creative
conceptualization and rollout of regional requests
(events, promotions, contests, campaigns) central
marketing also provides support to both the product
team and the branches in terms of conceptualizing and
standardizing marketing collaterals. These include
standard branch collaterals like posters, banners, e-
mailers, brochures etc.

Process for Marketing Collaterals

Please fill in the creative brief with all relevant details
which will help us to understand your requirements and
design appropriate collaterals for you. Please ensure
that creative brief is filled in detail so that the creative
team gets an accurate understanding of the
requirement. Partially filled briefs / requests without
creative brief will not be entertained.
After receiving the creative brief marketing would come

up with design of the collaterals and share it with the

concerned team

All collaterals will be subject to compliance / legal

approval

Post compliance / legal approval the collaterals would be

put into print

Post campaign you are requested to send the details of

the leads captured / business sourced, so the we can

have an understanding of the effectiveness of the

campaigns.

All regional requests need to be routed through the

respective Regional Marketing Manager for that region.

COMPETITORS

HDFC BANK
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.

ICICI Bank

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. 75.58 billion for the year

ended March 31, 2009. The Bank has a network of 1,471

branches and 4,721 ARMs in India and presence in 18

countries. ICICI Bank offers a wide range of banking

products and financial services to corporate and retail

customers and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and

asset management.
SBI BANK

The origin of the Bank of India goes back to

the first decade of the nineteenth century with the

establishment of the bank of Calcutta in Calcutta on 2

June 1806. Three years later the bank received its

charter and was re-designed as the Bank of Bengal (2

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 (15 April 1840) and the

Bank of Madras (1 July 1843) followed the Bank of

Bengal. These three banks remained at the apex of

modern banking in India till their amalgamation as the

Imperial Bank of India on 27 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 development 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 BAND

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 PSU

insurance companies, i.e. National Insurance Company

Ltd., The New India Assurance Company Ltd., The

Oriental Insurance Company Ltd. And United India

Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 359.76

Crores with the public holding (other than promoters) at
57.79%.
The Bank’s Registered Office is at Ahmedabad and its
Central Office is located at Mumbai. The Bank has a very
wide network of more than 853 branches and Extension
Counters (as on 30th June 2009). The Bank has a network
of over 3723 ATMs (as on 30th June 2009) providing 24
hrs a day banking convenience to its customers. This is
one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate
banking and is committed to adopting the best industry
practices internationally in order to achieve excellence.

SOME OTHER COMPETITORS ARE…….

 Trade

Import Export Inland Misc. Remittance

Advance Remittance Export Bill for Collection
Direct Import Bills Direct Dispatch
Import Bill for Collection Foreign currency Letter of
Letter of Credit credit backed Bill
Buyers Credit Discounting
Pre Shipment Finance
Post Shipment Finance
Inland Bill for Collection
Inland Letter of Credit
Inland Bank Guarantee
Clean Bill Discounting
LC backed Bill Discounting

Outward Remittance
Buisness Travels
Inward Remittance Study Abroad
Commission Medical Treatment
Freight Subscription Fees
Family Maintainance Etc.
Etc.
 MAJOR TRADE PRODUCTS PROVIDED BY

KOTAK MAHINDRA BANK

 Letter of Credit

 Remittances
o Inward
o Outward

 Forward Charges
 LETTER OF CREDIT

After a contract is concluded between buyer and seller,

buyer's bank supplies a letter of credit to seller.

Seller consigns the goods to a carrier in exchange for a bill of

lading.

Seller provides bill of lading to bank in exchange for payment.

Seller's bank exchanges bill of lading for payment from buyer's
bank. Buyer's bank exchanges bill of lading for payment from
the buyer.

Buyer provides bill of lading to carrier and takes delivery of

goods.

A standard, commercial letter of credit is a document issued

mostly by a financial institution, used primarily in trade finance,
which usually provides an irrevocable payment undertaking.

The letter of credit can also be source of payment for a

transaction, meaning that redeeming the letter of credit will pay
an exporter. Letters of credit are used primarily in international
trade transactions of significant value, for deals between a
supplier in one country and a customer in another. They are also
used in the land development process to ensure that approved
public facilities (streets, sidewalks, stormwater ponds, etc.) will
be built. The parties to a letter of credit are usually a
beneficiary who is to receive the money, the issuing bank of
whom the applicant is a client, and the advising bank of whom
the beneficiary is a client. Almost all letters of credit are
irrevocable, i.e., cannot be amended or cancelled without prior
agreement of the beneficiary, the issuing bank and the
confirming bank, if any. In executing a transaction, letters of
credit incorporate functions common to giros and Traveler's
cheques. Typically, the documents a beneficiary has to present
in order to receive payment include a commercial invoice, bill of
lading, and documents proving the shipment was insured
against loss or damage in transit. However, the list and form of
documents is open to imagination and negotiation and might
contain requirements to present documents issued by a neutral
third party evidencing the quality of the goods shipped, or their
place of origin.

Terminology

The English name “letter of credit” derives from the French

word “accreditation”, a power to do something, which in turn is
derivative of the Latin word “accreditivus”, meaning trust. The
Application any defence relating to the underlying contract of
sale. This is as long as the seller performs their duties to an
extent that meets the requirements contained in the letter of
credit.

Some of the Documents Called for under a Letter of

Credit

• Financial Documents

Bill of Exchange, Co-accepted Draft

• Commercial Documents

Invoice, Packing list

• Shipping Documents

Transport Document, Insurance Certificate, Commercial,

Official or Legal Documents

• Official Documents

License, Embassy legalization, Origin Certificate,

Inspection Cert , Phyto-sanitary Certificate

• Transport Documents

Bill of Lading (ocean or multi-modal or Charter party),

Airway bill, Lorry/truck receipt, railway receipt, CMC Other
than Mate Receipt, Forwarder Cargo Receipt, Deliver
Challan...etc

• Insurance documents
 Insurance policy, or Certificate but not a cover note.

pre shipment packing list

International Trade Payment methods

• Advance payment (most secure for seller)

Where the buyer parts with money first and waits for the seller
to forward the goods

• Documentary Credit (more secure for seller as well as

buyer)

Subject to ICC's UCP 600, where the bank gives an undertaking

(on behalf of buyer and at the request of applicant ) to pay the
shipper ( beneficiary ) the value of the goods shipped if certain
documents are submitted and if the stipulated terms and
conditions are strictly complied.

Here the buyer can be confident that the goods he is expecting

only will be received since it will be evidenced in the form of
certain documents called for meeting the specified terms and
conditions while the supplier can be confident that if he meets
the stipulations his payment for the shipment is guaranteed by
bank, who is independent of the parties to the contract.

• Documentary collection (more secure for buyer and to

a certain extent to seller)

Also called "Cash Against Documents". Subject to ICC's URC

525, sight and usance, for delivery of shipping documents
against payment or acceptances of draft, where shipment
happens first, then the title documents are sent to the
[collecting bank] buyer's bank by seller's bank [remitting bank],
for delivering documents against collection of
payment/acceptance

• Direct payment (most secure for buyer)

Where the supplier ships the goods and waits for the buyer to
remit the bill proceeds, on open account terms.
FORWARD CHARGES / HEDGING

By hedging, in the general sense, we can imagine the company

entering into a transaction whose sensitivity to movements in
financial prices offsets the sensitivity of their core business to
such changes. As we shall see in this article and the ones that
follow, hedging is not a simple exercise nor is it a concept that
is easy to pin down. Hedging objectives vary widely from firm to
firm, even though it appears to be a fairly standard problem, on
the face of it. And the spectrum of hedging instruments
available to the corporate Treasurer is becoming more complex
every day.

Another reason for hedging the exposure of the firm to its

financial price risk is to improve or maintain the
competitiveness of the firm. Companies do not exist in isolation.
They compete with other domestic companies in their sector
and with companies located in other countries that produce
similar goods for sale in the global marketplace. Again, a pulp-
and-paper company based in Canada has competitors located
across the country and in any other country with significant
pulp-and-paper industries, such as the Scandinavian countries.

Companies that are the most sophisticated in this field

recognize that the financial risks that are produced by their
businesses present a powerful opportunity to add to their
bottom line while prudently positioning the firm so that it is not
pejoratively affected by movements in these prices. This level of
sophistication depends on the firm's experience, personnel and
management approach. It will also depend on their competitors.
If there are five companies in a particular sector and three of
them engage in a comprehensive financial risk management
program, then that places substantial pressure on the more
passive companies to become more advanced in risk
management or face the possibility of being priced out of some
important markets. Firms that have good risk management
programs can use this stability to reduce their cost of funding or
to lower their prices in markets that are deemed to be strategic
and essential to the future progress of their companies.

Most importantly, hedging is contingent on the preferences of

the firm's shareholders. There are companies whose
shareholders refuse to take anything that appears to be
financial price risk while there are other companies whose
shareholders have a more worldly view of such things. It is easy
to imagine two companies operating in the same sector with the
same exposure to fluctuations in financial prices that conduct
completely different policy, purely by virtue of the differences in
their shareholders' attitude towards risk.
REMITTANCES

Generally, remittances are monies transferred from one

individual to another.

International remittances are transfers of funds by foreign

workers—"remitters"—who are living and working in developed
countries typically to their families who are still living in their
home countries. Examples include Middle Easterners living in
Europe, Latin Americans in the United States, and Koreans or
Filipinos in Japan. Although the use of remittance funds varies
from country to country, the recipients of remittances commonly
rely on them for living costs, education, and investments.

Remittances Have Increased Significantly and Become a Major

Source of Income for Developing Countries.
The topic of remittances has become a popular one in the
international financial community in recent years as both the
rate and volume of remittances have increased exponentially.
Gathering accurate data on international remittances has been
very difficult for a number of reasons, including the fact that a
good portion of the transfers is made on an informal basis.
Some official statistics do exist, however, and they present
startling numbers. In 1995, remittances to developing countries
totaled about $57.8 billion and shot up to $96.5 billion by 2001.
The World Bank estimated that in 2005 migrants sent home
approximately $167 billion, up 73% from 2001 (the true amount
could be 50% higher or more). In 2006, the World Bank reported
that remittances grew to approximately $206 billion; others put
the figure at $298 billion. These flows have led analysts to
conclude that the growth of remittances has exceeded private
capital flows and official development assistance to developing
countries. Moreover, remittances are a reliable source of foreign
capital; in the 1990s they were the least volatile source of
foreign exchange.

Migrants send money to their home countries through formal

and informal channels. Formal channels include major money
transfer operators (MTOs), such as Western Union and Money
Gram, and banks, such as Bank of America. Some migrants use
formal channels, but language barriers as well as related costs
for these services may deter remitters from using them.
Consequently, most remittances occur through informal
channels. For instance, migrants may carry cash home
themselves or send cash through the mail or a friend.

There is growing evidence that remittances have reduced

poverty levels in several developing nations. One study of 71
developing countries found that a per capita increase of 10% in
international remittances leads to a 3.5% decline in people
living in poverty. In another study, the World Bank concluded
that, based on available data, remittances have been associated
with reduced poverty in several low-income countries such as
Uganda (11% reduction), Bangladesh (6% reduction), and
Guatemala (20% reduction).

However, there is also conflicting evidence that remittances

have very little impact on the incidence of extreme poverty, or,
even worse, the opposite effect. Some analysts argue that
remittances in some countries contribute to a growing inequality
or gap, particularly in poor rural areas, between the groups of
people within a community who receive remittances and those
who do not. This may reflect the cost of sending family
members to foreign lands to work. Migrants are typically from
families that are neither the poorest (who cannot afford to send
someone away) nor the richest (who have no need to send
someone away) in the community, but who have a status more
analogous to middle-class. Additionally, increased income to
remittance-receiving families can lead to the formation of
"affluent" neighborhoods that stand apart from the rest of the
poor village. The poorest families thus seem to be even poorer
in comparison to the much-improved lifestyles that remittance
money allows some families to suddenly have.
INWARD REMITTANCE

1. Demand Draft
2. Incoming Payment Advice
3. Purchase of Foreign Currency Cheques
4. Cheques Sent for Collection

1. Demand Draft

A cheque payable to particular beneficiary drawn on our Bank

An inexpensive and simple method of funds transfer

2. Incoming Payment Advice

Money is remitted from overseas countries to Hong Kong by

Mail Transfer or Telegraphic Transfer with details for payment
A secure and convenient way to collect funds from abroad

3. Purchase of Foreign Currency Cheques

Travellers cheques, bank drafts or money orders may be

purchased and credited into account at branch manager's
discretion
Usually the funds will be available only after a certain period
(upon clearance of cheque)
To enable encashment of travellers cheques or first class bank
drafts with minimum formalities
To facilitate customers to draw against their own foreign
currency account abroad

4. Cheques Sent for Collection

Cheques not purchased by us will be sent for collection and
charges will be levied for service rendered
Customer's account will be credited with the net proceeds upon
receipt of payment
An inexpensive method for the customer to obtain the fund due
to him

OUTWARD REMITTANCE

1. Demand Draft
2. Telegraphic Transfer
3. Payment Order (Local)

1. Demand Draft

A cheque payable to particular beneficiary drawn on our

correspondent bank
In any major currency for any amount
Payment guaranteed by the issuing bank
An inexpensive and simple methods of funds transfer
A secure form of payment as the demand draft is payable to the
specified payee
Re-purchasable and refundable if lost
To facilitate payments on a regular basis by means of a standing
instruction

2. Telegraphic Transfer

The most efficient means with the payment instruction

transmitted by telex/SWIFT
In any major currency for any amount
A fast and accurate way to transfer funds abroad
A secure way of remitting funds of substantial amounts payable
to a specific beneficiary
To facilitate payments on a regular basis by means of a standing
instruction

3. Payment Order (Local)

The issuance of a local payment order to the recipient Bank

either by SWIFT or by mail
A fast way to expedite the receipt of funds
To facilitate payments on a regular basis by means of a standing
instruction

TYPE OF COMPANIES

Others, 11%
Softwares, 3%
Cloth Mfg., 2%

Logistics, 15%

Jewellers, 69%
WHAT ARE MAJOR COUNTRIES THROUGH WHICH YOU DO
IMPORT / EXPORT TRANSACTIONS

Others, 15% ,
Japan, 55%

Germany.,
70%
China, 20%
FOR YOUR FOREIGN EXCHANGE TRANSACTIONS WHICH
FORM OF FACILITIES YOUR USE

,
Others, 15%

Bank
Guarantee,
40%
Letter of Credit,
25%

Remittances,
25%
 BANK GUARANTEES

WHAT IS THE TENURE OF YOUR BANK GUARANTEE?

0-2 years
21%

8 years & above

44%

2-5 years
16%

5-8 years
19%
WHAT IS TYPE OF YOUR BANK GUARANTEE?

0%
Perfomance
43%

Financial Guarantee
57%
 REMITTANCES

WHICH FORM OF REMITTANCES ARE YOU INVOLVED IN?

Outward
48%

Inward
52%
WHEN AN INWARD REMITTANCE IS RECEIVED WHAT IS
THE AMOUNT YOU CONVERT IT TO INDIAN RUPEES

EEFC
24%

100% Conversion
47%

INR
29%
 LETTER OF CREDIT
DO YOU UTILIZE L. C. FACILITY?

0%

No
46%
Yes
54%
 WHICH TYPE?

Import Operation
under L.C. Revocable
13% 22%
Standby
17%

Transferable Irrevocable
7% Confirmed 24%
17%
HOW DO YOU FIND TRADE PRODUCTS PROVIDED BY
KOTAK BANK?

Poor
Good 0% 12%
28%
Satisfactory
24%

Very Good
Excelled
20%
16%
 WHAT ARE AREA OF IMPROVEMENT

Product Updates
14% 0% 13%
Technology
11%

Service
37% RM
25%
FINDING

 People are looking out for faster trade transaction

 Customers are fairly satisfied with the service of the bank

and service provided by the Relationship Manager.

 Bank Guarantees and letter of credit are the major

products that are used.
CONCLUSIONS & RECOMMENDATIONS

 The customer of Kotak Mahindra Bank is highly satisfy

with the products and service of the bank means bank
have done good work on that.

 The very first thing that Kotak Mahindra Bank required to

increase the infrastructure means bank needs to open
new branches across the India.

 Now Kotak Mahindra Bank is well known brand in the

financial market so bank have to enter in mass banking.

 Apart from premier banking Kotak Mahindra Bank have to

increase the reach and come on lower segment.

 Urban Market is saturated now bank have to focus on to

the rural market.
REFERENCES

In order to obtain more information regarding the present study

and to substantiate it with theoretical proof, the following
references were made.

WEBSITE VISITED:

www.kotak.com

www.rbi.org.in

www.google.com

www.icicibank.com

www.hewittasia.com

MAGAZINES

 Business Today
ANNEXURE
QUESTIONNAIRE

1. Type of Companies

2. What are major countries through which you do Import /

Export transactions

3. For your foreign exchange transactions which form of

facilities your use

BANK GUARANTEES

4. What is the tenure of your Bank Guarantee?

5. What is type of your Bank Guarantee?

6. Which form of remittances are you involved in?

7. When an inward remittance is received what is the

amount you convert it to Indian rupees

LETTER OF CREDIT

8. Do you utilize L. C. facility?

9. Which type?

10. How do you find trade products provided by Kotak Bank?

11. What are areas of improvement