kotak report

NIS ACADEMY, MBA 2010

A

PROJECT REPORT ON

MARKET STUDY AND CUSTOMER MAPPING

FOR BANKING PRODUCTS

PREPARED BY

Hemali Suratia

Bharti Thakkar

Manthan Sarvaiya

Truptesh Shah

Umesh Makhlepara

Sumit Patel

Kaushik Gondaliya

Yogesh Sindha

Nilesh Khetiya

(NIS Academy) SUBMITTED TO

Pramod Sir

(Branch Manager)

V.V.NAGAR


INDEX

Sir no. Particulars Page no. 1. Preface 03

2. Acknowledgement 04

3. Objective 05

4. Executive summary 06

5. Company profile 08

6. Introduction of banking sector in India 11

7. Current scenario 15

8. About Kotak Mahindra bank 19

9. History 20

10. SWOT Analysis of Kotak bank 28

11. NRI’S 3O

12. NRI Help center 52

13. Analysis 62

14. Conclusion 64


PREFACE

The industrial scenario of economy is highly competitive and constantly

changing. To serve this highly competitive scenario practical studies are much

more important with theoretical studies. In India the significance of MBA

course is increasing drastically. Amongst all the PG courses MBA is most

favored. As a partial fulfillment of third semester the students have to take a

summer training of 6 to 7 weeks at any company and prepare a project report on

the basis of that practical experience.

Indian economy is growing at a considerable rate. The growth of GDP in India

is 8% per annum. The major sector contributing to the growth of GDP is service

sector and it is approximately 63% to GDP. Banking is one of the main pillars

of service sector. So I have decided to take exposure of banking sector by taking

practical training at KOTAK MAHINDRA BANK which is one of the reputed

private banks.

The aim of KOTAK MAHINDRA BANK is customization & people cantered

banking. Customized banking system can be achieved by provided what

customer actually wants. So we want to check weather KOTAK MAHINDRA

BANK is successful or not. As a part of this study I have decided to prepare a

project report on “MARKET STUDY & CUSTOMER MAPPING FOR

BANKING PRODUCTS” PROVIDED BY KOTAK MAHINDRA BANK.

The study of this topic is helpful to me in analyzing customer satisfaction &

loyalty to the services which they are using at the KOTAK MAHINDRA

BANK. This study will also be helpful to us in analyzing the information about

what change customer want from the existing services. This report also gives

me the overall satisfaction level of customer from the KOTAK MAHINDRA

BANK & how the customers are loyal to the bank. This report also includes

graphical representation wherever it feels necessary. Finally, it is indeed

excellent opportunity for us to present this report and a matter of esteem honors

itself. After successful completion of training it is golden experience for me of

banking sector. And I also know how the different departments are working.


ACKNOWLEDGEMENT

First of all I am thankful to KOTAK MAHINDRA BANK and Branch Manager

Mr. Pramod Chauhan for giving me permission to take the summer training. I

would also like to thank the staff members of the bank for providing us

information about the different departments of the bank. I would like to thank

our Centre Head Mr. Manish Amin of NIS ACADEMY for his guidance and

kind support as well as our project guide Mrs. Nisha Kurup for their valuable

guidance and experience.

Finally I am glad to thank our all faculties who have provided me substantial

guidance & support in preparation of this project. This successful completion of

this project could not have been possible without their co-operation and support. I

would also like give some share of thanks to my friends for their support.


OBJETIVE

Every project have specific objective. Without deciding it nobody can complete

their work success faulty. So, before beginning any work we must to decide

own goal and objective to reach the principal stage.

Bank is having a set of customers who are having banking relationship with

customers but are not actively transacting because of unknown reason. To

objective underlying then project is to activate the above mentioned set of

inactive customers through direct contact viz, telephonic calls, personal visit

and emails. This will also help us in getting the feedback from the customers

who in term may help bank to improve upon its product and services.


EXECUTIVE SUMMARY

Executive summary is a term used in business for a short document that

summarizes a longer report,

It will usually contain a brief statement of the problem or proposal covered in

the major document(s), background information, concise analysis and main

conclusions. It is intended as an aid to decision making by business managers.

An executive summary differs from an abstract in that an abstract will usually

be shorter and is intended to provide a neutral overview or orientation rather

than being a condensed version of the full document. Abstracts are extensively

used in academic research where the concept of the executive summary would

be meaningless.

This project report is based on the NRI Banking Services provided by the Kotak

Mahindra bank. Three major criteria’s are undertaken for finding the customer

opinion i.e. people, process and physical evidence. As there was a limitation of

time and the project is too broad we have prepared the project report in group of

two. As Kotak Mahindra bank is a service firm we have selected the above

mentioned criteria’s. I have selected the banking sector because in India

banking is one of the most growing sectors and there are many future

opportunities are there. The banking sector of India is one of the least affected

by the slowdown all over the world because it strong framework and regulation.

Our project is mainly based on the research but for some aspects secondary data

is also being included from the websites and the books. As it is research project

we have undergone one survey of around 1200 respondents within ANAND

district to find the customer opinion of NRI services provided by the Kotak

Mahindra bank. We have selected the V V Nagar branch of the Kotak Mahindra


bank as our territory of research. A well designed questionnaire was formed of 7

questions for collecting the data. The exploratory research design is undertaken

and the data is being collected by field work and telephone. Without

replacement and non-random sampling method is being used. Our target

population was customers coming at bank and the corporate salary accounts.

We have also included all the information regarding the 7 Ps of the Kotak

Mahindra bank which will include all the information of Kotak Mahindra bank

related products, pricing, promotional schemes, people, various processes, and

the physical evidence facilities. All these data is being collected from the

secondary sources.


COMPANY PROFILE

The Kotak Mahindra group is a financial organization established in 1985 in

India. It was previously known as the Kotak Mahindra Finance Limited, a non-

banking financial company. In February 2003, Kotak Mahindra Finance Ltd, the

group's flagship company was given the license to carry on banking business by

the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first

company in the Indian banking history to convert to a bank.

The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive

Vice Chairman & Managing Director. Shankar Acharya is the chairman of board

of Directors in the company. The Bank has its registered office at Nariman

Bhavan, Nariman Point, Mumbai.

http://en.wikipedia.org/wiki/Chairman

http://en.wikipedia.org/wiki/Uday_Kotak

http://en.wikipedia.org/wiki/Managing_Director

http://en.wikipedia.org/wiki/Shankar_Acharya

http://en.wikipedia.org/wiki/Board_of_Directors

http://en.wikipedia.org/wiki/Board_of_Directors

http://en.wikipedia.org/wiki/Nariman_Point

http://en.wikipedia.org/wiki/Mumbai


Mr. K.M. Gherda Chairman

Mr. Uday Kotak Executive Vice Chairman & Managing Director

Mr. Anand Mahindra

Mr. Cyril Shroff

Mr. Pradeep Kotak

Dr. Shankar Acharya

Mr. Shivaji Dam

Mr. Ajay Sondhi

Mr. C. Jayaram Executive Director

Mr. Dipak Gupta Executive Director

Ms. Bina Chandarana Secretary & Senior Vice President


…….ORGANISATION CHART…….


INTRODUCTION OF BANKING SECTOR IN INDIA

The Indian Banking industry, which is governed by the Banking Regulation Act

of India, 1949 can be broadly classified into two major categories, non-

scheduled banks and scheduled banks. Scheduled banks comprise commercial

banks and the co-operative banks. In terms of ownership, commercial banks can

be further grouped into nationalized banks, the State Bank of India and its group

banks, regional rural banks and private sector banks (the old/ new domestic and

foreign). These banks have over 67,000 branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major

banks in 1969 and resulted in a shift from Class banking to Mass banking. This

in turn resulted in a significant growth in the geographical coverage of banks.

Every bank had to earmark a minimum percentage of their loan portfolio to

sectors identified as “priority sectors”. The manufacturing sector also grew

during the 1970s in protected environs and the banking sector was a critical

source. The next wave of reforms saw the nationalization of 6 more commercial

banks in 1980. Since then the number of scheduled commercial banks increased

four-fold and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the

sector in the early nineties, the Public Sector Banks (PSB) s found it extremely

difficult to compete with the new private sector banks and the foreign banks.

The new private sector banks first made their appearance after the guidelines

permitting them were issued in January 1993. Eight new private sector banks

are presently in operation. These banks due to their late start have access to

state-of-the-art technology, which in turn helps them to save on manpower costs

and provide better services.

During the year 2000, the State Bank of India (SBI) and its 7 associates

accounted for a 25 percent share in deposits and 28.1 percent share in credit.

The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5

percent of credit during the same period. The share of foreign banks (numbering

42), regional rural banks and other scheduled commercial banks accounted for

5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41


percent, 3.14 percent And 12.85 percent respectively in credit during the year

2000.

Banking in India has its origin as early as the vedic period. It is believed that the

transistion from money lending to banking must have occurred even before

Manu, the great Hindu Jurist, who has devoted a section of his work to deposits

and advances and laid down rules relating to rates of interest. During the Mogul

period, the indegenous bankers played a very important role in lending money

and financing foreign trade and commerce. During the days of the East India

Company, it was the turn of the agency houses to carry on the banking business.

The General Bank of India was the first Joint Stock Bank to be established in

the year 1786. The others which followed were the Bank of Hindustan and the

Bengal Bank. The Bank of Hindustan is reported to have continued till 1906

while the other two failed in the meantime.

In the first half of the 19th century the East India Company established three

banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank

of Madras in 1843. These three banks also known as Presidency Banks, were

independent units and functioned well. These three banks were amalgamated in

1920 and a new bank, the Imperial Bank of India was established on 27th

January 1921. With the passing of the State Bank of India Act in 1955 the

undertaking of the Imperial Bank of India was taken over by the newly

constituted State Bank of India. The Reserve Bank which is the Central Bank

was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of

the Swadeshi Movement, a number of banks with Indian management were

established in the country namely, Punjab National Bank Ltd, Bank of India

Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central

Bank of India Ltd. On July 19, 1969, 14 major banks of the country were

nationalised and in 15th April 1980 six more commercial private sector banks

were also taken over by the government. Today the commercial banking system

in India may be distinguished into following sectors:


.Public Sector Banks..

State Bank of India and its associate banks called the State

Bank group

20 nationalised banks

Regional Rural Banks mainly sponsored by Public Sector

Banks

..Private Sector Bank..

Old generation private banks

New generation private banks

Foreign banks in India

Scheduled Co-operative Banks

Non-scheduled Banks

..Co-operative Banks..

The co-operative banking sector has been developed in the

country to the suppliment the village money lender. The co-

operatiev banking sector in India is divided into 4 components

State Co-operative Banks

Central Co-operative Banks

Primary Agriculture Credit Societies

Land Development Banks

Urban Co-operative Banks

Primary Agricultural Development Banks

Primary Land Development Banks

State Land Development Banks


..Development Banks..

Industrial Finance Corporation of India (IFCI)

Industrial Development Bank of India (IDBI)

Industrial Credit and Investment Corporation of

India (ICICI)

Industrial Investment Bank of India (IIBI)

Small Industries Development Bank of India (SIDBI)

SCICI Ltd.

National Bank for Agriculture and Rural Development (NABARD)

Export Import Bank of India

National Housing Bank


CURRENT SCENARIO

The industry is currently in a transition phase. On the one hand, the PSBs,

which are the mainstay of the Indian Banking system, are in the process of

shedding their flab in terms of excessive manpower, excessive non-Performing

Assets (Npas) and excessive governmental equity, while on the other hand the

private sector banks are consolidating themselves through mergers and

acquisitions.

PSBs, which currently account for more than 78 percent of total banking

industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in

2000), falling revenues from traditional sources, lack of modern technology and

a massive workforce while the new private sector banks are forging ahead and

rewriting the traditional banking business model by way of their sheer

innovation and service. The PSBs are of course currently working out

challenging strategies even as 20 percent of their massive employee strength has

dwindled in the wake of the successful Voluntary Retirement Schemes (VRS)

schemes.

Private sector Banks have pioneered internet banking, phone banking, anywhere

banking, and mobile banking, debit cards, Automatic Teller Machines (ATMs)

and combined various other services and integrated them into the mainstream

banking arena, while the PSBs are still grappling with disgruntled employees in

the aftermath of successful VRS schemes. Also, following India’s commitment

to the W To agreement in respect of the services sector, foreign banks, including

both new and the existing ones, have been permitted to open up to 12 branches a

year with effect from 1998-99 as against the earlier stipulation of 8 branches.

Talks of government diluting their equity from 51 percent to 33 percent in

November 2000 have also opened up a new opportunity for the takeover of even

the PSBs. The FDI rules being more rationalized in Q1FY02 may also pave the

way for foreign banks taking the M&A route to acquire willing Indian partners.

Meanwhile the economic and corporate sector slowdown has led to an

increasing number of banks focusing on the retail segment. Many of them are

also entering the new vistas of Insurance. Banks with their phenomenal reach

and a regular interface with the retail investor are the best placed to enter into


the insurance sector. Banks in India have been allowed to provide fee-based

insurance services without risk participation invest in an insurance company for

providing infrastructure and services support and set up of a separate joint-

venture insurance company with risk participation.


THERE ARE SEVERAL GOOD REASONS FOR

INVESTING IN INDIA

One of the largest economies in the world.

Strategic location - access to the vast domestic and South Asian market.

A large and rapidly growing consumer market up to 300 million people;

constitute the market for branded consumer goods - estimated to be growing at

8% per annum. Demand for several consumer products is growing at over 12%

per annum.

Foreign investment is welcome; approval is required but is automatic in sixty

categories of Industries.

Skilled man-power and professional managers are available at competitive cost.

One of the largest manufacturing sectors in the world, spanning almost all areas

of manufacturing activities.

One of the largest pools of scientists, engineers, technicians and managers in

the world.

Rich base of mineral and agricultural resources.

Long history of market economy infrastructure

Sophisticated financial sector.

Vibrant capital market with over 9,000 listed companies and market

capitalisation of US$ 154 billion (March,1996)

Well-developed R&D infrastructure and technical and marketing services.

Policy environment that provides freedom of entry, investment, location,

choice of technology, production, import and export.

Well balanced package of fiscal incentives.

A sophisticated legal and accounting system.

English is widely spoken and understood.

Rupee is convertible on Current Account at market determined rate.

Free and full repatriation of capital, technical fee, royalty and dividends.

Foreign brand names are freely used. No income tax on profits derived from

export of goods.

Complete exemption from Customs Duty on industrial inputs and Corporate

Tax Holiday for five years for 100 per cent Export Oriented units and units in

Export Processing Zones.


Corporate Tax applicable to the foreign companies of a country with which

agreement for avoidance of Double Taxation exists, can be one which is lower

between the rates prevailing in any one of the two countries.


…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 broking, to mutual funds, to life insurance, to investment banking, the group

caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs.1550 crore and employs over 3,000 employees

in its various businesses. With a presence in 59 cities in India and offices in New

York, London, Dubai and Mauritius, it services a customer base of over 5,00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the

world's largest investment banks and brokerage firms), Ford Credit (one of the

world's largest dedicated automobile financiers) and Old Mutual (a large insurance,

banking and asset management conglomerate).


……………..HISTORY……………

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

Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto

and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a

stake in 1986, and that's when the company changed its name to Kotak Mahindra

Finance Limited

Kotak Mahindra is among the leading financial organization of India, with a range

of financial services that caters to all customers' day to day requirements. Their

products spans from commercial banking, to stock broking, to mutual funds, to life

insurance, to investment banking – diverse needs of individuals and corporates are

catered to.

The Kotak group has a net worth of more than Rs. 6,799 crore with the branches,

franchisees, representative offices and satellite offices spread across cities and towns

in India. They also have global offices in New York, London, San Francisco, Dubai,

Mauritius and Singapore. The Kotak Group offers their services to approximately

6.4 million customers.

The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital

Management Finance Limited, being promoted by Uday Kotak, Sidney A. A. Pinto

and Kotak & Company. A stake in the group was taken in by industrialists Harish

Mahindra and Anand Mahindra and this is the time when the company changed its

name to Kotak Mahindra Finance Limited.


..HIGHLIGHTS OF KOTAK MAHINDRA BANK..

Market Share Of Key Players In The Indian Aviation Sector

1986 Kotak Mahindra Finance Limited started off with Bill Discounting

1987

Kotak Mahindra Finance Limited makes its foray into the Lease and

Hire Purchase market

1990 The Auto Finance division starts

1991 The Investment Banking Division starts off. They take over FICOM,

one of India's largest financial retail marketing networks

1992 Penetrates into the Funds Syndication sector

1995

The brokerage and distribution businesses of the Group gets

incorporated into a separate company - Kotak Securities, whereas the

investment banking arm is incorporated into a separate company -

Kotak Mahindra Capital Company

1996

The Auto Finance Business of the Group is hived off into a separate

company - Kotak Mahindra Prime Limited. Kotak Mahindra takes up

a major stake in Ford Credit Kotak Mahindra Limited to finance Ford

vehicles. They launch Matrix Information Services Limited, marking

the group's entry in information distribution

1998 Kotak Mahindra Asset Management Company is incepted and they

enter into the mutual fund market.


2000

Kotak Mahindra makes a tie with Old Mutual plc. For their Life

Insurance business. Kotak Securities launches the site (now

www.kotaksecurities.com). Kotak Mahindra Venture Capital Fund is

formed and the private equity business of the group commences.

2001 Matrix is sold to Friday Corporation and the Insurance Services is

launched.

2003 Kotak Mahindra Finance Ltd. gets converted into a commercial bank.

2004

A private equity fund (India Growth Fund) is launched.

2005 Kotak Group launches a real estate fund

2006 The Group buys 25% stake held by Goldman Sachs in Kotak

Mahindra Capital Company and Kotak Securities

THE JOURNEY SO FAR…


KEY GROUP COMPANY AND THEIR BUSINESS.

The Kotak Mahindra Group’s flagship company, Kotak Mahindra Finance Ltd

which was established in 1985, was converted into a bank – Kotak Mahindra Bank

Ltd in March 2003 becoming the first Indian company to convert into a Bank. It’s

banking operations offers a central platform for customer relationships across the

group’s various businesses. The bank has a presence in the Commercial Vehicles,

Retail Finance, Corporate Banking and Treasury and has recently entered the

Housing Finance segment.

Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment

Bank and a Primary Dealer (PD) approved by the RBI, is a strategic joint venture

between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP.

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

Structured Finance and Advisory Services, Fixed Income Securities and Principal

Business.

…….KOTAK SECURITIES…..

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank

Limited and the Goldman Sachs Group, LLP. Is one of India's largest brokerage and

securities distribution house in India? Over the years Kotak Securities has been one

of the leading investment broking houses catering to the needs of both institutional

and retails investor categories with presence all over the country through franchisees

and co-coordinators. Kotak Street - the retail arm of Kotak Securities Ltd., offers

online (through www.kotakstreet.com) and offline services well-researched

expertise and financial products to the retail investors.

http://www.kotakstreet.com/


….KOTAK CAR FINANCE….

Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra

Bank Ltd and Ford Credit International Inc., (USA) formed to finance all non-Ford

passenger vehicles. KMP is one of the country’s leading players in car finance and

is focused to financing and supporting automotive and automotive related

manufacturers, dealers and retail customers.

….KOTAK MUTUAL FUND....

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak

Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF).

KMMF manages funds in excess of Rs 4000 crores and offers schemes catering to

investors with varying risk- return profiles. It was the first fund house in the country

to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between

Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps

customers to take important financial decisions at every stage in life by offering

them a wide range of innovative life insurance products, to make them financially

independent.


THE JOURNEY OF KOTAK MAHINDRA BANK

2003

-Madison Communications has won the Rs.30cr Kotak Mahindra's

media

AOR Account.

-The proposal of changing the name from 'Kotak Mahindra Finance Ltd'

To 'Kotak Mahindra Bank Ltd' and the proposal to change the

Authorized capital from 100, 00, and 00,000 divided into 10, 00, and

00,000

Equity shares of Rs.10 each has been approved by the company

shareholders.

-RBI has granted license to Kotak Mahindra Finance Ltd to embark on

Its Banking business.

-O & M has got the creative account of Kotak Mahindra Bank, and has

said to be working professionally.

-Kotak Mahindra Bank has received a lot of interest from portfolio

Investors, private equity investors and potential strategic investors.

-Kotak Mahindra Bank has entered into an ATM sharing agreement

with UTI Bank, which would allow KMB's customer free access to

around 800 ATM's.

-Kotak Mahindra Bank has started its operations in New Delhi by

Inaugurating a Branch Connaught place office.

-Dr.Shankar Acharya has been appointed as the Additional Director to

the board of the bank.


-The Board of Kotak Mahindra Bank Ltd accepts the resignation of

Mr.S.A.A Pinto and Mr.M.R Punja as the Directors of the Bank.

-Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak

Mahindra Capital Company has constituted itself from a private

company to a public limited company and has changed

Its name to 'Global Investment Opportunities Fund Ltd'.

-Kotak Mahindra bank has unveiled several home finance products

options which includes:

Home loan, Home equity Loan, Home loan transfer and Home

improvement loans.

--Kotak Mahindra Bank launches online remittance services called,

FUNDS to HOME

For Non-resident Indians.

-In response to the repo rate cut by the RBI, the Kotak Mahindra Bank

has reduced its lending rates in home loans.

-Kotak Mahindra Bank Limited has informed that the equity shares of

the Bank have been delisted from the Delhi Stock Exchange Association

Ltd w.e.f December 10, 2003.

2004

-Kotak Mahindra Bank Limited has informed that the Bank's equity

Shares will be delisted from The Stock Exchange, Ahmedabad with

Effect from January 20, 2004.

-Kotak Mahindra Bank sets up branch in Surat.

-Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an

Open-ended equity growth scheme


-Kotak Mahindra Bank inks pact with Reuters

2005

-Kotak Mahindra Bank purchases stressed assets worth Rs 1,000 cr

-Kotak Bank joins hands with IndianNGOs.com

-Kotak Mahindra Bank invests Rs 25 cr in BFW

2006

-Kotak Mahindra joins hand HDFC Bank to share ATMs.

-Kotak Mahindra to buy out Goldman Sachs' stake in JVs

-Kotak Mahindra Bank sets up branch in Valsad

-Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio

2007

-Kotak Mahindra Bank Launches Home Banking, Improves Banking

Experience

-Kotak Mahindra Bank Launches Salary 2 Wealth

-Kotak Mahindra Bank Launches Kotak Gold Debit Card

-Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of

IT Returns

2008

Kotak Mahindra Bank launched credit cards for its customers.


2009

-Kotak entered into tie up with Russia's top investment bank

-Kotak Mahindra Bank Wins IT Team of the Year for 3rd

Consecutive Time at the Banking Technology Awards 2008

..SWOT ANALYSIS OF KOTAK MAHINDRA BANK..

1. STRENGTHS:

Professional management

Strong technology,

Well capitalized,

Comprehensive cash management system

Total Deposits Rs15, 645 crore

Net Advances Rs16, 625 crore

2. WEAKNESS:

Latecomers

Less Promotional Activities

3. OPPORTUNITIES:

Have best services & product compare to other bank

4. THREATS:

Capital Market slow-down

Other better Saving Facility by other Competitor


Rising Rates

investment option available (like Insurance, Mutual fund, Real-estate,

Gold)

Government Rules And Regulation


……………..NRIs………………..

NRIs

An Indian Citizen who stays abroad for employment/carrying on business or

vocation outside India or stays abroad under circumstances indicating an

intention for an uncertain duration of stay abroad is a non-resident. Non –

Resident foreign citizens of Indian Origin are treated on par with non-resident

Indian Citizens (NRIs) for the purpose of certain facilities.

Main categories of NRIs

The following are the main three categories of NRIs:-

(i) Indian citizens who stay abroad for employment or for carrying on a business

or Vocation or any other purpose in circumstances indicating an indefinite

period of stay abroad.

(ii) Indian citizens working abroad on assignment with foreign government

agencies like United Nations Organization (UNO), including its affiliates,

International Monetary Fund (IMF), World Bank etc.

(iii) Officials of Central and State Government and Public Sector undertaking

deputed abroad on temporary assignments or posted to their offices, including

Indian diplomat missions, abroad.


For Non Resident Indians and Persons of Indian Origin we have a specially

designed product range for banking and investments. Choose a product that best

suits your investment objectives, be it moderate return, quick liquidity or capital

preservation. We offer

Diversified investment options

Power packed NRI Accounts and Deposits

Remittance and Foreign Exchange Services

Insurance

Portfolio Investment schemes under FEM

BANKING:

NRO Rupee Savings

Bank and easily access your Indian income and earnings with an NRO Savings

account. You can also easily credit your account from anywhere in the world.

What makes the NRO Rupee Savings account different?

Deposits from any source in India and abroad are accepted subject to

repatriation restrictions for foreign currency

Pension, dividend, rent, and other current income can be repatriated on

completion of documentation

Transfer amounts up to a limit of USD 1 million each financial year on


Settle your International Credit Card dues through your NRO account

for cards issued by banks in India

The principal amount in an NRO Account is completely tax free while

the interest earned is taxed* at 30% plus applicable surcharge and

education cess (interest income less than Rs. Ten Lakhs)

*Tax Deducted at Source (TDS) certificates are issued.

NRE Rupee Savings


Manage your overseas earnings with a totally tax-free, completely repatriable

NRE Savings account. Benefit from an account designed to help you earn more

from your Rupee savings in India.

What makes the NRE Rupee Savings account different?

Deposits from a local source accepted only if reparable

No charge deposits of funds received from abroad as Traveler's cheques

or foreign currency brought through normal banking channels into your

account

Accepts maturity proceeds of investments purchased from even NRE /

FCNR Accounts

The principal and interest earned in an NRE Account are completely

tax free and exempt from Income Tax in India

Rupee Advantage Plan

Earn higher returns with an FCNR Deposit combined with a forward cover in

INR under the Rupee Advantage Plan. Get this plan and add on to the benefits

of the FCNR deposit.

What makes the Rupee Advantage Plan different?

Involves a forward contract on your FCNR Deposit in USD / GBP /

EURO / JPY

Deposit a minimum of USD 25,000 or equivalent in any of the four

currencies

Deposit for a period of 1 year 1 day for higher interest


Please note: Rates and Yields offered are provisional and subject to change at

any time without prior notice. Please contact your Branch or Relationship

Manager to confirm the yield before actual placement of funds.

FCNR Deposits


Enjoy attractive returns from a fully reparable, zero tax liability FCNR Deposit

account in various currencies. Protect your money from exchange rate

fluctuations by maintaining your FCNR deposit in international currencies.

What makes the FCNR Deposit different?

Rupee conversion to Foreign currency before booking as an FCNR

deposit

Deposits from a local source accepted only if reparable



account


FCNR Accounts




NRO Term Deposits

Maximize your earnings in India and get easy access to your funds anywhere

with NRO TDs. Carry out your transactions in India through your Term

Deposits held in Indian Rupees.

What makes the NRO Rupee Term Deposit different?

Deposits from any source in India and abroad are accepted subject to

repatriation restrictions for foreign currency

Pension, dividend, rent, and other current income can be repatriated on


Transfer amounts up to a limit of USD 1 million each financial year on


Settle your International Credit Card dues through your NRO account

for cards issued by banks in India


The principal amount in an NRO Account is completely tax free while

the interest earned is taxed* at 30% plus applicable surcharge and

education cess (interest income less than Rs. Ten Lakhs)


Gain with the Kotak Max Yield NRO Deposit!

Now you can earn more from your savings with a Kotak Mahindra Bank Max

Yield NRO Deposit. Benefit from lowered tax rates on your Kotak Max Yield

NRO Fixed Deposit under the Double Taxation Avoidance Agreement (DTAA)

of India with these countries

Country

Rate of TDS on interest for

Max Yield NRO Deposit

(with DTAA benefit)

Rate of TDS on interest for

Regular NRO Deposit(without

DTAA benefit)

US 15% 30% plus surcharge and cess

UK 15% 30% plus surcharge and cess

Singapore 15% 30% plus surcharge and cess

South Africa 15% 30% plus surcharge and cess

Belgium 15% 30% plus surcharge and cess

Kenya 15% 30% plus surcharge and cess

Saudi Arabia 15% 30% plus surcharge and cess

UAE 15% 30% plus surcharge and cess

Australia 15% 30% plus surcharge and cess

Canada 15% 30% plus surcharge and cess

**Apart from basic account opening documentation, to avail of the DTAA

benefit, a simple declaration stating that you are eligible for the DTAA

provision will be required.

NRE Term Deposits

Benefit from NRE TDs with no tax liability, complete repatriability and a host

of value added services. Invest in this term deposit to earn more from your India

savings.

What makes the NRE Rupee Term Deposit different?


Deposits from a local source accepted only if repatriable



account


FCNR Accounts



P O Box Services

Sending your documents to India from the US or UK is now convenient and

cost-effective!

Sending your banking documents to us is now a matter of ease. Simply send a

local courier to the address mentioned below.

Your documents shall be picked up twice a week. Please do not include cheques

or any other financial instruments, Kotak Mahindra Bank reserves the right to

destroy such instruments or return them back to you.

TO KOTAK MAHINDRA BANK, INDIA - NRI SERVICES

USA

BOM/USA/1217614/KOT

SPRING, P.O. BOX 688, BUFFALO,

NY 14240-0688, UNITED STATES OF AMERICA

UK

BOM/UK/1217614/KOT

P.O BOX NO. 66, HOUNSLOW,

TW59RT, UNITED KINGDOM


TO SEND YOUR DOCUMENTS TO KOTAK MAHINDRA BANK,

INDIA:

a. Print out this request letter- PO Box request form

b. Fill it, sign it and attach it with your documents

c. Send it by local, ordinary post to the P O Box location mentioned above. Do

not use a courier or registered post service.

Terms & Conditions

Kotak Mahindra Bank Ltd., India shall not be responsible for any loss

in transit or any monetary loss including loss on account of change in

exchange rates, interest rates, deposit value date etc. arising due to the

time elapsed due to return of the monetary instrument. Kotak Mahindra

Bank Ltd. India is only availing of the services provided by Quantum

Mail Logistics India Pvt. Ltd, in the aforesaid countries

Twice a week, Quantum Mail Logistics India Pvt. Ltd India (the service

provider), opens the P.O. Box and collects all packets / envelopes and

couriers all documents to the Quantum Mail Logistics India Pvt. Ltd

India Office from where they are sent to Kotak Mahindra Bank, NRI

Services.

Kotak Mahindra Bank Ltd. is not responsible for any loss in document

arising out of the documents sent to a wrong address or documents lost

in transit before reaching the Kotak Mahindra Bank Ltd. P.O. Box

Confidentiality of the documents send by the customer would be

maintained

The users of the Post Box (PB) facility are availing the service at their

own risk

Neither Kotak Mahindra Bank Ltd. nor Quantum Mail Logistics India

Pvt. Ltd India will be responsible or liable to the user or any third party

for the "Envelopes/Consignments or its Contents" (collectively

referred as "Consignments") during the transit from the user to the PB

On receipt of the Consignments in the PB, Quantum Mail Logistics

India Pvt. Ltd shall be responsible for the Consignment to the user till it

http://www.kotak.com/Kotak_BankSite/nri/webfm_send/13


is transshipped and delivered to Kotak Mahindra Bank Ltd. - CPC NRI

Cell, Mumbai. By availing the service of PB the user shall be deemed

to have agreed to entrust the transshipment to India in his sole risk and

discretion to G3 worldwide India and Kotak Mahindra Bank Ltd. is not

liable or responsible for any loss or destruction of the Consignments in

the hands of Quantum Mail Logistics India Pvt. Ltd.

User is aware that Kotak Mahindra Bank Ltd. will not process the

documents without furnishing this letter duly filled with and in the

event no letter or incomplete information are furnished Kotak Mahindra

Bank Ltd. is neither responsible to return the documents to the user or

to keep it in safe custody

In the event the users instruction/s cannot be carried out owing to any

discrepancy or otherwise Kotak Mahindra Bank Ltd. may inform the

user by email to the email ID furnished by the user. Kotak Mahindra

Bank Ltd. is not responsible for non-receipt of such email on account of

any incorrect email ID or systemic error or non-acceptance by the

computer system of the user

Kotak Mahindra Bank Ltd. shall in its sole discretion destroy the

documents after two months of receipt without any further reference to

the user and the user agrees that Kotak Mahindra Bank Ltd. is not liable

or responsible to either user or any other person for such destruction

User agrees that he shall be solely responsible for the contents of the

Consignment and shall indemnify Kotak Mahindra Bank Ltd. for any loss

or damage suffered to it on account of handling the contents or merely the

letter being addressed to it in view of legal, regulatory or contractual

requirements of the user.

Access India Debit Card

Enjoy seamless India access through your NRO Account whenever you visit

home. Use this ATM plus debit card to carry out your India transactions when

you visit home.


Benefits of the Access India Card

Access to any VISA ATM and stores accepting VISA in India

Gift an Add-on Card to a person of your choice (above 18 years) for

their personal use. Specify a daily withdrawal limit and link it with your

account

Stay updated on your account status with SMS alerts

Eligibility

NRO Savings / Current Account

Global Debit Card

Benefit from an International ATM plus debit card with VISA Power across the

world. Access your account as you travel across countries and enjoy the benefits

of the Kotak Global Debit Card.

Benefits of the Global Debit Card

Worldwide access to any VISA ATM and stores accepting VISA

worldwide

Specify a daily withdrawal limit and link it with your account

Stay updated on your account status with SMS alerts

Eligibility

NRE Savings / Current Account

Phone Banking

Get personalized service round the clock at our 24 hr Customer Contact Center.

Use the Kotak Mahindra Bank toll free number to access your account

anywhere you go.

8 Benefits of Phone Banking

Instruct a Kotak officer to transact once you have the single or

unconditional signing authority on your account

View account balance, activity, transfer progress and more


Cheque book request and account statements

Request the latest interest and exchange rates

State standing instructions or stop cheque payments

Request Transfer of funds between accounts (NEFT)

Open a Term Deposit or get information

Inquire transaction status, Demat status of securities

Online Banking

Net Banking for easy access to your deposit, demat and investment accounts

24x7. View and transact with a single or unconditional signing authority on

your account.

8 Benefits of Net Banking

Log in with any of your Kotak Mahindra Bank NRI accounts

View account balance, activity, transfer progress and more

View and update personal details

Request for a cheque book, PIN and other enhanced features

Transfer funds online between accounts (NEFT)

Open a Term Deposit

View securities available for Demat

Inquire transaction status, Demat status of securities

Privy League

Kotak Mahindra Bank introduces Privy League, a premium banking services

offering financial solutions with exclusive benefits. Join the Privy League to

expand your lifestyle, grow your wealth, travel the world, luxuriously and retire

to comfort while you meet your responsibilities.

Privy League Membership:

Available to Resident Individuals and Non Resident Individuals

Members above the age of 18 years only


Choice of two plans based on your Financial Objective and Portfolio

o Gold Plan for Relationship Value* of INR 10 Lakhs

o Platinum Plan at a Relationship Value* of INR 25 Lakhs

Note: Relationship Value comprises of your balance across Savings Accounts,

Deposits and Investments. Privy League members are required to maintain a

Savings Account with an Average Quarterly Balance (AQB) of INR Rs. 50,000.

Special Privileges for Privy League Customers:

Premium Banking: With Privy League you enjoy access to a range of

financial solutions with your bank account in addition to accelerated customer

service from your dedicated Relationship Manager.

Banking Privileges:

Privy League Platinum Debit and ATM Card with flexi limit facility and

added waivers and offers

Home Banking services like Bill Pay, Kotak Payment Gateway and

Investment Convenience

Locker services across multiple locations (in select branches) at a

preferential price

Kotak Gold Eternity offers on are Swiss-made, 24 - Carat pure, 99.99%

Assay certified Gold coins and bars ranging from 5 to 100 gms

Internet banking to access special offers, promotions and exclusive

benefits under the Privileges section

Preferred Processing of banking transactions at all branch locations

Special Fees and Charges on various services

Tax Advisory Services through our tie-up with Sudit K. Parekh & Co.

and easy tax payments payable at a Kotak Mahindra Bank branch itself

Lifestyle Updates: Experience the world of culture, sport and indulge your

choice of leisure activities with Privy League lifestyle offers.

Lifestyle Privileges:


Dining benefits at the best restaurants in town

Entertainment & Leisure Privileges with exclusive invites to movies,

premiers, theatrical plays, sporting events and more

Attend knowledge-based seminars, Tax Advisory or Investment

workshops, premium car test-drives and lifestyle product launches

Convenience Offers like gifting services to your loved ones on special

days round the year from a choice of flowers, bouquets and chocolates

Travel and Holiday offers with tie ups for car rentals, travel operators,

hotels, rejuvenation centres and much more

Concierge Services available with the VISA Platinum Card on travel

plans, business equipment, entertainment plans and other specialty

services courtesy of VISA

Note: Terms and Conditions applicable. Details of Lifestyle Privileges are

available under the Post Login section of Net Banking.

TRANSFERS

Direct Debit

Make a paperless transfer with just one click

Use this simple method to send home money from the comfort of home. This

online remittance facility uses the standard Automated Clearing House (ACH)

platform.

How you can register for Direct Debit

Log on to FUNDS to HOME

Register for Direct Debit

Provide details

Validate your account

After 5 days, activate facility from a link in your FUNDS to HOME

account

Send your remittance

Get funds in your Kotak Mahindra Bank Account within 5 working days*

Demand Drafts will be delivered in 3 working days**

https://www.kotak.com/fth/enter.jsp?a=0&b=0%20-Ok




*5 working days after instructions have been received by us. Working days- not

including Saturdays, Sundays and Public Holidays in both countries.

*3 days after receipt of funds at Kotak Mahindra Bank for Metros and Non-

Metros (not including Saturdays, Sundays and Public Holidays).

Wire Transfer

Send home money to your Kotak bank account

Make a direct transfer from your account abroad to Kotak Mahindra Bank to

send home money in the most secure manner.

REGISTRATION

Cheque


Now you can encash any cheques drawn on your Kotak Mahindra Bank

Account through your FUNDStoHOME account.

How to make a Cheque transfer

Log on to FUNDS to HOME

Provide cheque details

Mail the instrument to

PO Box 11448A - New York NY 10286 1448*

This Lock Box address is mentioned in the deposit slip

Remittances from ME


Transfer money at economical rates through the Exchange Houses and Money

Transfer Agents having an arrangement with Kotak Mahindra Bank.

Make a cost-effective money transfer through agents across the Gulf, North

America, Europe, Asia and Australasia. This remittance in Indian Rupees is

specially designed to benefit NRIs in the Middle East.

How do I transfer money through a Kotak partner?

Select the branch or designated associate outlet of your convenience.

Wire Transfer

https://www.kotak.com/j1001part/fth/enter.jsp?a=0&b=0



Use Kotak Mahindra Bank's wire transfer facility to make secure international

wire transfers from your bank account. You can move money from your account

to a Kotak Mahindra Bank account in India with ease.

What details do I need for a wire transfer?

Kotak Mahindra Bank's Correspondent Bank Nostro account number and

SWIFT Code. Click here to see Correspondent Banks.

The beneficiary's account number with Kotak Mahindra Bank Branch.

Specify the identification for your name and address in the remittance

message in this format to your overseas banker.

State the purpose of the remittance with instructions for the Bank to

invest the funds. (To book an FCNR term deposit, mention it clearly

including the currency of deposit)

Ensure mention of complete details in the message by the local remitting

bank.

Kotak Mahindra Bank SWIFT Code : KKBKINBB

NOTE: Kotak Mahindra Bank does not take any responsibility for delay in

receipt of funds from the Originating Bank due to incomplete information.

Cheque

Write out a Cheque or demand draft favoring your Kotak Mahindra Bank

Account and leave the money transfer to us.

Remember! Check if the demand draft is valid and not endorsed

Currency Turn Around Time for Transfer to beneficiary Account*

USD

6 working ** days for USD instruments drawn on banks in

New York City.

14 working ** days otherwise.

Euro 10 working ** days

GBP 10 working ** days

SGD 21 working ** days

* From the date of credit to Kotak Mahindra Bank's nostro account.

** Excluding Saturdays, Sundays and Public Holidays

http://www.kotak.com/Kotak_BankSite/nri/page/correspondent-banks


INVESTMENTS:

Investment Account

View your portfolio, receive alerts and do more in your Investment account at

your convenience. As a Kotak Mahindra Bank customer, you can open your

Investment account even with a zero balance.

Your Kotak Investment Account gives you more:

Stay updated with a daily MF Portfolio statement

Link your Net Banking account with your MF purchases for filling MF

forms or cheques for every transaction

Receive redemption proceeds directly in your Bank Ac

View your Portfolio Statement for a consolidated report of all your MF

investments, across schemes, with latest NAV information, updated

returns status and more

Get Mutual Fund Recommendations

Choose between opening an online investment account with us on a

reparable or on a non-reparable basis*.

NOTE: As Per the regulatory framework, the investments for all existing

Kotak customers with an investment account are re-grouped into separate

investment accounts. The re-grouping is based on the Reparability status of the

Folios held to help you manage your investments efficiently.

*Online Mutual Fund investment services are available to NRIs in all countries

except those based in USA and Canada. NRIs based in UK can register on visit

to India

Recommendation

Earn more with your pick of mutual funds from a recommended list of

consistent and highly performing mutual funds. Kotak prepares a list of top

performing mutual funds for your reference every quarter.


How do you judge MF performance?

Kotak's comprehensive process accounts for both high returns and consistency

of returns to select the best performing Mutual Fund schemes.

The main criterion for selection is the Excess Return Potential Ratio to test the

performance consistency of the funds. The research includes keen analysis

across four time horizons, every 6 months. Some factors are:

Reward to Risk Analysis

Portfolio Characteristics

Corpus size

MF Assistance

Gain from expert advice and analysis at each step with Kotak Mahindra's

experienced research team. Find the MF option most suitable for you with latest

mutual fund communication like fact sheets from Kotak's team of experts.

How we choose MFs on the Kotak advisory list?

The Kotak team of experts investigates:

Asset Management Company's Investment philosophy

Portfolio quality

Risk-adjusted returns of the scheme

What does the advisory list include?

The Kotak MF advisory list ranges from Debt to Equity funds. These MFs are

selected from high performing schemes observed under reputed Mutual Fund

houses like Franklin Templeton, Reliance, Prudential ICICI and others.

Demat Account

Invest in the Indian market through Kotak depository services with easy to trade

shares in the "demat" format. Do more with your investments through Kotak

Mahindra Bank's highly efficient depository service. Once you consolidate your

shares in a Demat account, you can trade all your securities at your

convenience.


Why open a Kotak Demat Account?

At Kotak Mahindra Bank, you pay the minimum service charges in the

market

We take care of paper work like debt requirements of companies (Issue of

Commercial Paper, Certificate of Deposits, etc.) to us

Your composite Demat Account can hold not just equity shares but also

Government Securities and bonds

Get any query or assistance from a dedicated and trained Customer Care

Officer even while you transact

Portfolio Investment Services

You can now purchase equity shares and convertible debentures in India under

the Portfolio Investment Scheme (PINS). With the Kotak Group of financial

services, your transactions are seamless across accounts. It is easier than ever to

invest and earn from the Indian secondary market through a PINS account

designed for NRIs by the Reserve Bank of India.

How can I open a PINS account?

Open a PINS account

at any of these RBI Designated Branches

Call Kotak 24x7 Customer Care

Mail us at [email protected]

Visit any Kotak Branch

NOTE: Online PINS investment services are available to NRIs in all countries

except those based in USA and Canada. NRIs based in non GCC countries can

register on visit to India.

Kotak Term and Preferred Term Plans:

Now you can profit from a pure risk cover policy that also offers life cover at

minimal costs. This plan helps you pay off your outstanding debts like a

mortgage, a home loan etc. The Kotak Preferred Term Plan offers special

premium rates for a sum assured of Rs.10 lakhs and above for non-smokers and

http://160.1.10.233/kotak_nri/pdf/pis_designated_branches.pdf

mailto:[email protected]

http://www.kotak.com/Kotak_BankSite/common/branch_amloh.html


women. The policy is non-participating but has value added benefits you can

choose to gain with this plan.

How do you gain?

Low cost insurance plan with high cover

Special rates for women and non-tobacco users

Flexibility in choice of Premium Payment

Choose from - regular, single and limited premium payment options

Growth Plans

Choose the right insurance policy from a range of options

Kotak Smart Advantage Plan:

Make way for your future plans with the Kotak Smart Advantage policy from

Kotak Life Insurance. This market linked plan invests your savings with 100%

premium allocations to make your money grow consistently over a long term.

How do you gain?

Guaranteed returns of up to 275% on the first year premium, paid at

maturity

Increased fund value with regular loyalty bonus during the term of the

policy

Maximized earnings with 100%* Premium allocation from second year

onwards

Flexible choice of life cover

Protection for your family and loved ones

*Applicable for premium sizes of Rs. 36,000 and above annually from second

year onwards.

Kotak Easy Growth Plan:

Earn more today with the market linked Kotak Easy Growth Plan with a single

premium option. This insurance plan meets the need for lifelong security with a

single payment through your choice of up to six fund options.


How do you gain?

One-time premium payment

Life ling Investment benefit

Choose from six fund options varying in growth and returns

Increase investment by up to 25% of single premium paid

Easy exit options with access to cash withdrawal

Kotak Capital Multiplier Plan:

See your investment multiply with the Kotak Capital Multiplier Plan. This

endowment plan allows your capital to grow in the market and also gives you

the flexibility to withdraw amounts whenever you require it.

How do you gain?

Flexible extension of policy term beyond maturity

Earn additional 10% above the original life-cover across the policy term

Withdraw plan maturity proceeds with a free ATM card

Increased fund value with regular loyalty bonus during the term of the

policy

Add to your policy amount with top-up premiums

Savings Plans

Choose the right insurance policy from a range of options

Kotak Flexi Plan:

With this market-linked investment plan, you can provide for the future and

ensure protection for your family. The Kotak Flexi plan manages to earn

efficient returns over the long term while securing a Guaranteed Maturity Value

at the same time.

How do you gain?

Grow your money with market highs and be risk safe during market lows

Choose from a wide range of funds per your risk capacity

Select a Limited Premium or Regular premium payment option


Increase your Investments any time with a premium top-up

Enjoy easy liquidity through partial withdrawal of maturity proceeds

Kotak Endowment Plan:

Protect your family during contingencies while growing your savings today.

Kotak Endowment Plan is a participating plan that allows you to earn over a

long term through regular investment.

How do you gain?

Earn from your savings and enjoy life cover

Get extra bonuses on the plan

Make a Limited premium payment per your convenience

Kotak Premium Return Plan:

Get risk coverage and assured returns with the Kotak Premium Return plan.

You receive a certain amount of the premiums paid back depending on the

option you choose along with maturity benefits available.

How do you gain?

Minimum premium payments

Get back premiums paid depending on term of the plan

Hassle free plan as it does not require a medical examination

Kotak Money Back Plan:

Earn back a percent of the amount assured in cash with the Kotak Money Back

Plan. This participating, savings plan gives you a life cover benefit while

allowing you a regular income every five years.

How do you gain?

Minimum premium payments

Benefit from guaranteed Additions on maturity


Get a 7% increase in sum assured at the end of each year under death

benefit

Enjoy bonuses from the plan

Kotak Safe Investment Plan II:

Benefit from a unit linked plan that earns through the capital market and also

offers risk cover. You can enjoy a Guaranteed Maturity Value where you profit

from the market highs but do not lose with market lows.

How do you gain?

Grow your money with market highs and be risk safe during market lows

Choose from a six fund options per your risk capacity

Select a flexible risk cover option per your needs


Enjoy easy liquidity through partial withdrawal of maturity proceeds

Kotak Retirement Income Plan:

Save for your old age with the Kotak Retirement Income plan with a choice of

"with cover" for life or "without cover."

How do you gain?

Specify retirement age anytime between 45 yrs. and 65 yrs.

Flexibility to opt for early retirement due to ill-health

Increase investments with a premium top-up before retirement


Get Automatic Cover Maintenance, under the "with cover" option to

ensure coverage in spite of unpaid premiums after first three years of the

term.

Kotak Retirement Income Plan (Unit Linked):

Make a high earning investment for your future with unit linked Kotak

Retirement Plan. This investment plan earns for you even after you are no

longer employed. You can choose the extent of investment risk and guarantee

against falling markets.


How do you gain?

Maximum earnings with capital preservation

Choose from five fund options

Flexibility to opt for early retirement due to ill-health



………NRI HELP CENTRE...........

OIFC

The Kotak Mahindra Group has joined the Overseas Indian Facilitation Centre

(OIFC) as a Strategic Partner. This alliance will give Kotak a platform to share

its comprehensive range of Wealth Management Advisory and Investment

offerings in form of products and services for Non Resident Indians (NRIs) and

Persons of Indian Origin (PIOs). These offerings from the Group are

specifically customized to suit the overseas Indian investors' personal financial

needs.

The Overseas Indian Facilitation Centre is a not-for-profit public private

initiative between the Ministry of Overseas Indian Affairs (MOIA) and

Confederation of Indian Industry (CII), established as a focal point for

facilitating the process of economic engagement of the Indian diaspora with

India. At the Pravasi Bharatiya Divas Convention, being hosted this year (7th -

9th January, 2010), at Vigyan Bhawan, New Delhi, Kotak will also showcase its

expansive portfolio of financial products, with interactive opportunities for

participants to get a closer insights of all that the Group is into and avail of

taxation, real estate or financial advisory services. The focus of this convention

held every year is on bringing together eminent overseas Indians to engage,

interact, and build networks for mutual benefit, besides having Ministers of

States together on issues that their states need to attend on priority to improve

facilities and incentives for the overseas Indian community

Wealth Management

Kotak Wealth Management brings you a complete, customized financial plan

that advises you on your asset allocation and what schemes to invest in,

factoring in all your financial objectives.

The products offered are broadly divided into Traditional and Specialized

categories:


Traditional Investments comprise mainly of Direct Equity, Mutual Funds,

Insurance

Specialized Investments include diverse investment opportunities namely:

o Structured Products- a pre-packaged investment strategy based on

…derivatives, such as a single security, a basket of securities,

options, indices, commodities, debt issuances and foreign

currencies. A feature of …some structured products is a "principal

protection" function which offers …protection of principal if held

to maturity.

o Private Equity- equity securities of unlisted companies.

o Real Estate - Real estate funds founded by a group of real estate

professionals/experts to 'manage' property/real estate for the

investor.

o Estate Planning- a process involving the counsel of professional

advisors who are familiar with your goals and concerns, your assets

and how they are owned, and your family structure.

International Subsidiaries

The international subsidiaries of Kotak Mahindra Bank Limited, through their

offices in London, New York, Dubai, Mauritius, San Francisco and Singapore

specialize in managing a wide range of India investment funds through which

overseas investors like you can invest in India. Click here to know more

NRI Banking

Kotak Mahindra Bank offers Banking and Investment Solutions for a jet setting

Non Resident Indian like you. Click here to know more

Briefly, the product range includes NRE Accounts- available in the form of

Savings and Term Deposits which are completely reparable and tax-free, NRO

accounts- available in the form of Savings and Term Deposits to manage your

income in India, Foreign Currency Non Resident Accounts (FCNR)- available

in the form of Term deposits denominated in USD/GBP/EUR/ JPY which are

completely reparable and tax-free.

There are also special products like Max Yield Deposits where you can earn a

higher return on your NRO deposits through the DTAA benefit, Ace Deposit- a

http://www.investindia.kotak.com/disclaimer.php?disc=http://www.investindia.kotak.com/products/india-investment-funds.php


unique product that invests interest earned on your deposit into Equity Mutual

Funds and hence creates an avenue for earning market linked returns, while

safeguarding the principal amount of the Fixed Deposit, Overdraft Facility

against Term Deposits, and Privy League which is an exclusive offering for

select clientele who expect more out of their banking experience.

Investments through Kotak Mahindra Bank

Portfolio Investment Services

Profit from investment in equity shares in India under the Portfolio Investment

Scheme (PINS). You have the option of investing online* too!

Mutual Fund Services

View your portfolio; receive alerts and more through your Investment account

at your convenience. Choose between opening an online investment account

with us on a repatriable or on a non repatriable basis*.

Home Finance

Buy your space in India with any of Kotak's flexible options to finance your

dream home. Get a host of attractive features customized to NRI needs with an

easy to avail home loan.

*the online facility is not available in certain countries. Contact us for this

information.

Kotak Securities - Direct Equity Investments

Kotak Securities offers you specialized products depending on your

requirements and also provides conventional brokerage & advisory services.

Click here to know more

Investment products offered include

TRINITY- seamless investment facility into shares and mutual funds

http://www.kotak.com/Kotak_BankSite/nri/banking/convenience-banking/index.html#Online%20Banking


Portfolio Management Schemes

Discretionary - Investing in equities requires time, knowledge and constant

monitoring of the market. If you need expert help, this scheme is an

excellent solution

Non-Discretionary- A consultative and transparent method of investing

where you are always consulted and informed of investment decisions,

thus giving you total control

Corporate fixed deposits & government bonds

Kotak Life Insurance

At Kotak Life Insurance, we understand your attachment to your homeland and

need to save for you family's future. We offer you a suite of products that would

suit your requirements. Click here to know more.

Basic information:

Investment Modes- Invest seamlessly from your NRE or NRO bank

accounts.

Foreign currency policy- you have the option of foreign currency policy,

i.e. your Sum Assured is represented in equivalent foreign currency.

Claim Settlement - Your claims are paid in the same proportion of the

currency in which you make premier payments

Tax Benefits- Under the Income Tax Act, 1961:

Tax deductions are available against the income earned in India and

taxable in India..

The claims and the premiums paid are tax free

Risk Profiler

Estimate and understand your investment risk profile based on 11 questions to

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PAN Procedure


Every Indian citizen entering a financial transaction in India is mandatorily

required to have a Permanent Account Number. It is the sole identification

number for the purpose of tax payments and investments.

What is a PAN Card?

Stands For: Permanent Account Number (PAN)

Contains: 10 alphanumeric numbers

Issued by: The Income Tax Department

Managed by: UTI Investor Services Ltd. (UTIISL)

The National Securities Depository Limited

(NSDL)

Validity: Lifetime

START

Why apply for an NRI PAN Card?

An NRI PAN Card is required for almost all transactions of which some are:

Paying taxes on Indian income under the Income Tax Act, 1961

Investing in securities per the Securities and Exchange Board of India

(SEBI)*

Investing in Mutual Fund schemes for all existing and prospective

investors

Opening an account through the enhanced Know Your Customer ('KYC')

procedure**

Purchase and sale of property in India

Purchase and payments of vehicles

Securing a telephone connections

Making time deposits in a bank worth over Rs.50,000

* Securities and Exchange Board of India (SEBI) Circular dated April 27, 2007

for all transactions irrespective of the amount with effect from July 2, 2007

** For any investment or transaction equal to or more than Rs. 50,000/- under

the Prevention of Money Laundering Act, 2002

PAN Application

http://www.kotak.com/Kotak_BankSite/nri/getting-started/getting-started.html


How to Apply for an NRI PAN Card?

Read Instructions to fill Form 49A, the application form for a PAN.

Select a convenient method to access the form

1. Online form submission through UTITSL

2. Download form from the Income Tax, UTIISL and NDSL

websites.

3. Collect form locally from IT PAN Service Centers or TIN

Facilitation Centers

Attach required proofs and make the payment.

Beware of AIR Reports of Taxmen

By Ameet Patel

The Government of India is in a very aggressive mode as far as collecting

information about large financial transactions is concerned and also about

tracking tax evaders. There is a also a very strong movement to make many

processes relating to tax administration electronic and automated. This would

ensure that the Income-tax department has a central database of all tax payers in

the country along with details of large financial transactions entered into by

each such person in a year.

One important tool used by the Government to collect such information is the

AIR.

What is AIR?

AIR is an abbreviation for the term "Annual Information Return". AIR was

made effective from the financial year 2003-04. An AIR has to be filed by the

prescribed person who is responsible for registering or maintaining books of

accounts or other documents containing record on any specified financial

transaction under any law for the time being in force.

Use of AIR?

The purpose of collecting such information is to ensure that a person who enters

into such transactions duly accounts for all such transactions for which

information is independently collected from the specified persons through the

AIR.

Section 14A of the Income-Tax Act

http://www.utitsl.co.in/utitsl/uti/newapp/nriapplication.jsp


By Ameet Patel

Introduction:

Section 14A was brought onto the statute by the Finance Act, 2001 with

retrospective effect from 1st April, 1962. While introducing this section, the

Finance Minister has explained the rationale for this section as follows:

"No deduction for expenditure incurred in respect of exempt income

against taxable income

Certain incomes are not includible while computing the total income as these

are exempt under various provisions of the Act. There have been cases where

deductions have been claimed in respect of such exempt income. This in effect

means that the tax incentive given by way of exemptions to certain categories of

income is being used to reduce also the tax payable on the non-exempt income

by debiting the expenses incurred to earn the exempt income against taxable

income. This is against the basic principles of taxation whereby only the net

income, i.e., gross income minus the expenditure, is taxed. On the same

analogy, the exemption is also in respect of the net income. Expenses incurred

can be allowed only to the extent they are relatable to the earning of taxable

income

It is proposed to insert a new section 14A so as to clarify the intention of the

legislature since the inception of the Income-tax Act, 1961,that no deduction

shall be made in respect of any expenditure incurred by the assesse in relation to

income which does not form part of the total income under the Income-tax Act."

Objective of the section:

Based on the above rationale, it would seem that the objective of the section is

to prevent tax payers from setting off expenses incurred to earn tax free income

against other income which is taxable. What this means therefore is that a tax

payer must, in the first place, have tax free income and must have actually

incurred expenses to earn such tax free income. The next step then would be to

quantify such expenses and ensure that the same are not claimed by the tax

payer as a deduction against any other income.

Computation of the disallowance:


As per the section, in the following circumstances, the tax officer has to

compute the disallowance as per Rule 8D:

1) When he is not satisfied with the correctness of the claim of expenditure

made by the tax payer or

2) When the tax payer claims that he has not incurred any expenditure to earn

tax free income.

Rule 8D lays down the computation mechanism for this purpose. The formula

laid down in the said Rule is highly unfair and does not take into cognisance the

facts of any case. It merely lays down an arithmetical method of arriving at a

disallowance. This disallowance often comes to much more than the entire

expenses debited to the Profit and Loss Account by the tax payer.

Recent developments:

Once the Rule 8D was notified sometime in early 2008, the tax officers have

been mechanically applying the said Rule to all pending assessments. In most

cases, they have been rejecting the working prepared by the tax payer and huge

disallowances have been made under section 14A based on the irrational

computational mechanism laid down in the Rule.

However, the latest development has made matters even worse now. Recently,

the Income-tax Appellate Tribunal had occasion to decide on the issue of

applicability of the section in those cases where a tax payer had invested money

in investments, the income from which, as and when received, would be tax free

in the hands of the tax payer. In view of conflicting decisions of various

Tribunals in the matter, it was decided to constitute a Special Bench. This

Special Bench at Delhi has given its decision vide its consolidated order dated

5th August, 2009 in the case of ITA Nos. 87/Del/2008, 4788/Del/2007 and

233/Ahd/2006

The gist of the Special Bench decision is that section 14A would be applicable

even in those cases where the tax payer has not earned any income which is tax

free but has invested funds in investments which, when they start yielding

income, such income would be tax free. The rationale of the Special Bench in

coming to this conclusion was its interpretation of the language of section 14A.

According to the Special Bench, what was relevant was to work out the


expenditure in relation to the exempt income and not to examine whether the

expenditure incurred by the assesse has resulted into exempt income or taxable

income. It held that when the expenditure is incurred in relation to income

which does not form part of the total income , it has to suffer the disallowance

irrespective of the fact whether the income is earned by the assesse or not.

Section 14A does not envisage any such exception The Tribunal also held that

the earlier decisions of the Supreme Court in the case of Maharashtra Sugar

Mills and Rajasthan State Warehousing holding that if there is one indivisible

business, the entire expenditure is allowable, would have no application after

the introduction of section 14A. Thus, as per this decision, even if the tax payer

has not earned any tax free income in a year, yet, a part of his expenses would

necessarily have to be disallowed under section 14A read with Rule 8D if funds

have been borrowed at a cost and if the tax payer has investments in shares or

mutual funds, the income from which, when received, would be tax free.

Implications of the decision:

The implications of this decision would be very harsh on those tax payers who

have borrowings and who have invested in shares and mutual funds. In such

cases, even if the investments are long term and/or strategic ones and even if

there is no income actually accruing or received during a year, there would still

be a disallowance of part of the interest paid based on the formula laid down in

Rule 8D. It is pertinent to note that the decision is that of the Special Bench and

hence carries more persuasive value than an ordinary Tribunal decision. This is

also binding on the other benches of the Tribunal. Hence, now to adopt a

different view, one will have to wait till some High Court decides the matter in

favor of the assesse.

It would be very risky to take a stand that no expenses have been incurred to

earn tax free income or that since there is no tax free income; the question of

disallowance of any expense does not arise

Tax Alert

In a recent ruling in the case of a Mauritian company E*TRADE Mauritius

Ltd.1 (ET Mauritius), the Authority for Advance Ruling (AAR) held that ET

Mauritius is not liable to pay capital gains tax in India in respect of the transfer

of shares held by it in AAR Ruling in case of E Trade Mauritius- Read

Details.pdf




Advisor's Profile

Ameet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh &

Co., Chartered Accountants. Ameet is a rank holder and has secured ranks at the

Inter and Final CA examinations at the all India level. He is an avid writer and

has contributed articles to various magazines and websites including CNBC's

moneycontrol.com. He specializes in corporate taxation and advises several

reputed companies, mutual funds and FIIs. He is also the Immediate Past

President of Bombay Chartered Accountants' Society which is a voluntary

organization of Chartered Accountants and has more than 8,000 members from

all over India. He is currently the Chairman of its InfoTech Committee and a

member of the Taxation Committee. He has co-authored two books on taxation

Overdraft Facility

Overdraft limit against NRE and FCNR Deposits enhanced to Rs.100 Lakhs

against the previous overdraft limit of Rs.20 Lakhs.

Credit to NRE encashment

Proceeds of demand drafts/ banker's Cheque issued against encashment of

foreign currency can be credited to NRE accounts where such instrument issued

is supported by an Encashment Certificate issued by AD category I/ category II

(Authorized Money Changers).

NRO account

Remittance facility is available up to USD 1 million per financial year subject to

prescribed documentation.


Analysis

Summer internship program is a crucial part of building student’s practical

know-how about real corporate market. In this business scenario it must require

to update ourselves with current market happenings relating to banking,

insurance, economy, and other various markets.

For such a requirement the institute provides the summer internship program for

students for updating themselves to current corporate scenario. On this basis our

NIS Academy provided us the SIP in KOTAK MAHINDRA BANK at the

V.V.Nagar branch. For such training in KOTAK MAHINDRA BANK, the

interview was conducted at our institute. And finally the 9 students were

selected for further training in bank. The training period is for 2 months i.e. 1st

July to 31st August.

Before starting our training, the branch manager of KOTAK MAHINDRA

BANK i.e. Mr. Pramod Chauhan had provided us the orientation lectures

towards the project at KOTAK BANK. He has imparts needed knowledge about

the project proper. He has also solved the queries of students about banking

performance towards its clients. Then our actual training started.

The training is based on NRI banking products and services provided by the

bank and it contains the project title named as “Market study and customer

mapping for banking products and services“. In such project training we have

prepared a questionnaire regarding NRI database to provide better banking

services to them. For that purpose we had obliged to collect NRI information

within the ANAND District guided by the branch manager.

For further training for collecting NRI information, we have prepared certain

routes to different villages of ANAND. Then we have divided two groups for

collecting data. By this way we have covered much villages of ANAND for our

project training. We gain much experience from such a field work like

confidence in ourselves, body language, and our behavior towards different

class of people, etc.

During training period, the students are required to report at KOTAK Bank on a

daily basis for submitting NRI database information. This is because we were

provided some guidance from the Branch Manager for effective presentation to

the people for collecting information from them. By the efforts of both group of

students, we reached at approximately 1200 respondents for the purpose of

collecting NRI information from them. From which 400 were NRIs and we had


analyzed these 400 NRIs for further procedure of analysis for providing them

better Banking products and services provided by the KOTAK MAHINDRA

BANK.


CONCLUSION

The youth today has a large number of avenues available to them to build a

career. They walk out with a graduation degree from various universities, with

great aspiration and expectations. These individuals dream to make big in life

with their inherent skills here, it become difficult for them to decide the job that

suits their skills match their expectation. This young and aspiring generation is

very valuable.

It has been great opportunity for us to be placed at Kotak Mahindra bank for

summer internship training for the period of two months. Where I gained lot of

practical knowledge, how talking with customers, customer value, details of

NRI customers how help the bank by guiding and teaching of PRAMOD SIR

(Branch manager of Kotak bank, V.V.Nagar).

kotak report

Documents

Transcript of kotak report