Assignment on Financial Education and Investment Awareness

Submitted by
N. Dhananjaya
R.J. Tejashwini
R. M. Indu

Reg. No : U16BB23C0047
U16BB23C0049
U16BB23C0050

Submitted to
MANEESHA MALLIK
ASSISTANT PROFESSOR

Basavarajeswari Group Of Institutions

BALLARI BUSINESS COLLEGE

(Affiliated to Vijayanagara Sri Krishnadevaraya University, Ballari)
WARD NO 35, GANESH NAGAR,OPP KSRTC BUS DEPOT SIRUGUPPA ROAD,
BALLARI - 583103

2024-25
 MODULE- 1

Introduction

1.1 Introduction to Mini Project

This mini project aims to study the structure and functioning of Kotak Mahindra Bank in detail. It
focuses on understanding key banking operations, financial services, and customer relationship
strategies. The project includes various modules covering operations, performance analysis, and digital
initiatives. It provides a practical perspective on how private sector banks function in the competitive
Indian market. The project also examines the bank’s use of technology in service delivery. Comparative
insights are included to evaluate its position among other banks. Overall, the project enhances
understanding of real-world banking practices.

1.2 Significance of Mini Project

This project is significant as it highlights the role of Kotak Mahindra Bank in modern banking. It shows
how the bank adopted technology to improve customer experience. By studying its services and
strategies, we gain valuable insight into the private banking sector. It helps us understand how financial
products are designed and delivered to different customer groups. The project also emphasizes the
importance of financial planning and digital transformation. It enhances our knowledge about banking
operations. Overall, it prepares us to understand real-world financial systems better.

1.3. Objectives of the Mini Project:

1. To analyze the operational structure and key banking services offered by Kotak Mahindra Bank.

2. To study the bank’s financial performance, digital initiatives, and customer relationship strategies.

3. To compare Kotak Mahindra Bank with other leading banks to understand its competitive position
in the industry.
1.4. Limitations of the Mini Project:

1. The project was done within a short time frame, so only limited topics could be covered.

2. Some information was not easily available online, which made data collection a bit difficult.

3. As students, we had limited access to real-time bank operations or insider details.

 Module – 2

Company Profile (Bank Profile)

2.1. Introduction

Kotak Mahindra Bank Limited, headquartered in Mumbai, India, is a leading private sector bank and a
diversified financial services conglomerate. Founded in 1985 by Uday Kotak as Kotak Capital
Management Finance Limited, it began as a non-banking financial company (NBFC) specializing in
bill discounting, leasing, and hire-purchase. In February 2003, it became the first NBFC in India to
receive a banking license from the Reserve Bank of India (RBI), rebranding as Kotak Mahindra Bank
Limited. Today, it is a prominent player in India’s financial sector, known for its customer-centric
approach, digital innovation, and comprehensive service offerings.

2.2. Bank Logo

The logo is a symbol of trust and innovation.

2.3. Bank Name

2.4. Bank History

 Kotak Mahindra Finance Ltd. was established in 21st November 1985.

 It became the first NBFC in India to receive a banking license from RBI in 2003.
 It renamed as Kotak Mahindra Bank after receiving the license.
 It was founded by Uday Kotak.
 It expanded through acquisitions like ING Vysya Bank in 2015.
 It currently one of India’s leading private sector banks.

2.5. Bank Location

The bank’s headquarters is located in Mumbai, Maharashtra.

2.6. Vision

Vision to be the most trusted and preferred bank in India, delivering high-value financial services
through innovation, customer-centricity, and excellence.

2.7. Mission

To provide simple, accessible, and comprehensive financial solutions, leveraging technology and
human expertise to empower customers and promote financial inclusion across urban and rural India.
2.8. Growth:

Key Milestones

1985: Established with a ₹30 lakh loan, focusing on financial services.

1990–1996: Expanded into auto finance (Kotak Mahindra Primus), investment banking (with Goldman
Sachs), and life insurance.

2003: Transitioned into a commercial bank after receiving RBI license.

2005–2006: Acquired full ownership of Kotak Mahindra Prime and Goldman Sachs’ stakes in
investment banking and securities subsidiaries.

2014–2015: Merged with ING Vysya Bank, becoming India’s fourth-largest private bank, and acquired
a 15% stake in Multi Commodity Exchange (MCX).

2017: Launched Kotak 811, a digital savings account, doubling its customer base by 2018.

2021–2023: Acquired Sonata Finance (microfinance) and sold its stake in Airtel Payments Bank.

2024: Zurich Insurance acquired a majority stake in Kotak Mahindra General Insurance. RBI
temporarily barred new customer onboarding via digital channels due to IT system deficiencies.

2.9. Financial Growth

 Profit: ₹17,976.83 crore (FY24); ₹4,932.76 crore (Q1 FY25).

 Advances: ₹3.72 lakh crore (Q3 2023), up from ₹2.19 lakh crore (FY20).

 Deposits: ₹4.08 lakh crore (Q3 2023), CASA ratio 47.7%.

 Asset Quality: Gross NPA 1.73%, net NPA 0.34% (Q3 2023).

 Market Share: 4th in deposits/advances, 11.8% in broking, 6.5% in asset management (FY24).

2.10. Network Expansion

 Branches: 1,869, from 300 (2010).

 ATMs: 3,239.

 International: Offices in London, New York, Dubai, Singapore.

 Customers: Over 30 million, from 8 million (2015).

 2.11. Growth Drivers

 Digital Banking: Kotak 811 and mobile apps boosted UPI transactions.

 Acquisitions: ING Vysya (2015), Sonata Finance (2023) expanded reach.

 Financial Inclusion: MSME and agri-loans, microfinance growth.

 Wealth Management: 6.5% asset management market share.

2.12. Challenges

 RBI Ban (2024): Temporary digital onboarding restriction due to IT issues, now resolved.
 Competition: Rivals like HDFC, ICICI, and fintechs challenge market share.

2.13. Competitors:

Kotak Mahindra Bank, a leading private sector bank, faces competition from banks and financial
institutions in retail, MSME, corporate, and digital banking. Below is a concioverview of its key
competitors in 2025.

1. Private Banks:

 HDFC Bank: Largest private bank, 7,860 branches, strong digital platform, 1.2% gross NPA.
 ICICI Bank: 5,900 branches, robust corporate and digital banking, 2.2% gross NPA.
 Axis Bank: 5,200 branches, competitive MSME and retail loans, 1.8% gross NPA.

2. Public Sector Banks:

 State Bank of India (SBI): 22,000 branches, dominates rural and government business, 2.3%
gross NPA.
 Punjab National Bank (PNB): 10,000 branches, strong in priority sector lending, 4.8% gross
NPA.

3. Fintechs/NBFCs:

 Bajaj Finance: Agile personal and MSME loans, digital-first model.

 Paytm Payments Bank: Leader in digital payments and UPI transactions.

  Conclusion: Kotak competes with HDFC, ICICI, and SBI for market share, while fintechs like
Bajaj Finance challenge its digital and MSME offerings. Its low NPA (1.73%) and digital focus
(Kotak 811) provide a competitive edge.

2.14. Business Segments and Services

Kotak Mahindra Bank operates through four core units: Consumer Banking, Corporate Banking,
Commercial Banking, and Treasury. Its key offerings include:

1. Personal Banking:

• Savings accounts (e.g., Kotak 811, Silk Women’s Savings Account), fixed deposits, personal
loans, home loans, car loans, credit cards, and debit cards.

2. Business and Corporate Banking:

• Current accounts, working capital finance, trade finance, cash management, treasury solutions,
and acquisition financing. Commercial Banking: MSME loans, agricultural financing, tractor
loans, and microfinance for rural and semi-urban customers.

3. Wealth Management:

• Mutual funds, portfolio management, and advisory services for high-net-worth individuals.NRI
Banking: NRI savings accounts, fixed deposits, and remittance services.

4. Digital Banking:

• Mobile and internet banking, digital payment solutions (e.g., Jifi, KayPay), and a “phygital”
(physical + digital) strategy.

5. Subsidiaries:

• Kotak Mahindra Prime (vehicle financing), Kotak Mahindra Capital (investment banking), Kotak
Securities (broking), Kotak Mahindra Life Insurance, and Kotak General Insurance.

2.15. Schemes

Kotak Mahindra Bank offers a diverse range of schemes tailored to meet the financial needs of various
customer segments, including retail, MSME, agricultural, corporate, NRI, and wealth management
clients. These schemes encompass savings accounts, loans, investments, insurance, and digital banking
solutions, designed to promote financial inclusion, support entrepreneurship, and deliver customer-
centric services.Kotak Mahindra Bank offers schemes across various segments:

1. Retail Banking:

• Kotak 811 Savings Account: Zero-balance digital account, 4% p.a. interest, free
UPI.Silk
 • Women’s Savings Account: For women, with discounts and free debit card.
• Personal Loan: ₹50,000–₹40 lakh, 10.99%–16% p.a., 1–5 years.
• Home Loan: Up to 90% of property value, 8.7%–9.5% p.a., up to 30 years.
• Education Loan: Up to ₹20 lakh (India), ₹40 lakh (abroad), 11.5%–14% p.a.

2. MSME Banking:

• Business Loan: ₹3 lakh–₹10 crore, 9%–22% p.a., up to 15 years.

• Pradhan Mantri Mudra Yojana (PMMY): Up to ₹10 lakh, no collateral.
• PM SVANidhi: ₹10,000–₹50,000 for street vendors, 7% interest subsidy

3. Agricultural Banking:

• Agri Business Loan: ₹1 lakh–₹50 lakh, 8.5%–12% p.a., up to 7 years.

• Tractor Loan: Up to 90% of equipment cost, 8%–11% p.a.

4. Investment and Savings:

• Fixed Deposit: 6.5%–7.6% p.a., 7 days–10 years.

• National Pension System (NPS): Market-linked returns, tax benefits.

5. Social Security:
 • PM Jeevan Jyoti Bima Yojana (PMJJBY): ₹2 lakh life insurance for ₹436/year.
• PM Suraksha Bima Yojana (PMSBY): ₹2 lakh accident cover for ₹20/year.

6. Digital Banking:

• Kotak Mobile Banking: UPI, bill payments, investments.

• Credit Cards: Reward points, lounge access, ₹0–₹10,000 annual fee.

2.16. Objectives

Kotak Mahindra Bank’s objectives align with its vision to be India’s most trusted financial institution
and its mission to deliver simple, accessible, and comprehensive financial solutions. These objectives
guide its operations, schemes, and strategic initiatives in 2025.

1. Promote Financial Inclusion:

• Expand access to banking services for underserved segments, including rural, semi-urban, and
low-income customers, through digital platforms like Kotak 811 and microfinance schemes.

• Support government initiatives like PM SVANidhi, PMMY, and Stand Up India to empower
street vendors, MSMEs, and marginalized groups (SC/ST, women).

2. Enhance Customer-Centricity:

• Deliver tailored financial solutions to diverse customer segments, including retail, MSME,
agricultural, NRI, and high-net-worth clients, through products like Silk Women’s Savings
Account, personal loans, and wealth management services.

• Ensure convenience and transparency via a “phygital” (physical + digital) approach, combining
1,869 branches with mobile banking and UPI.

3. Drive Digital Transformation:

• Leverage technology to enhance banking accessibility and efficiency, offering seamless digital
services like Kotak Mobile Banking, Wifi, and digital payment solutions.
 • Address IT system deficiencies (noted in RBI’s 2024 restrictions) to strengthen digital
infrastructure and regain full digital onboarding capabilities.

4. Support Business and Economic Growth:

• Provide financing to MSMEs and agricultural sectors to fuel entrepreneurship and rural
development, with schemes like Business Loans (₹3 lakh–₹10 crore) and Agri Business Loans
(₹1 lakh–₹50 lakh).

• Contribute to India’s economic growth by supporting key sectors, with advances of ₹3.72 lakh
crore (Q3 2023).

5. Foster Wealth Creation and Financial Security:

• Offer investment and savings products like Fixed Deposits (6.5%–7.6% p.a.), mutual funds, and
National Pension System (NPS) to promote long-term wealth creation.

• Provide social security through schemes like PM Jeevan Jyoti Bima Yojana (₹2 lakh life cover)
and PM Suraksha Bima Yojana (₹2 lakh accident cover).

6. Maintain Financial Stability and Asset Quality:

• Sustain low non-performing assets (gross NPA 1.73%, net NPA 0.34% in Q3 2023) through
robust risk management.

• Achieve consistent profitability (₹4,932.76 crore in Q1 2025) and maintain a strong CASA
ratio (47.7%).

7. Advance Sustainability and Corporate Responsibility:

• Integrate sustainable practices, such as participation in Climate Action 100+ via its asset
management arm, to align with global environmental goals.

• Improve gender diversity (currently 13% women in senior management) and community
engagement through CSR initiatives.

2.17. Awards & Rewards

Kotak Mahindra Bank has received numerous awards including Best Digital Bank and Excellence in
Customer Experience.
2.17.1. Awards:

National Awards

1. 2015–2016:

• Business Leader of the Year for Uday Kotak, ET Awards 2015.

• Lifetime Achievement Award for Uday Kotak, Financial Express Best Banks Awards 2015–16.
2. 2018:

• Best Savings Bank Product, Financial Express Best Bank Awards.

• Banker of the Year for Uday Kotak, Businessworld Magna Awards.

3. 2019:

• India Business Leader of the Year for Uday Kotak, CNBC-TV18.

• Best Product Innovator for WhatsApp Banking, India Banking Summit & Awards.
4. 2020:

• CA Business Leader for Shanti Ekambaram, ICAI (BFSI category).

5. 2023:

• Lifetime Achievement Award for Uday Kotak, BT-KPMG Best Banks and AIMA Awards.
6. 2024:

• CA Business Leader for Paritosh Kashyap, ICAI (BFSI category).

• Institution Builder Award for Uday Kotak, Forbes India Awards.

• HR Leadership Award for Subhro Bhaduri, RASBIC Awards.

International Awards

1. 2013:

• Best Bank in India, Euromoney Awards for Excellence.

• Best Domestic Equity House, Asiamoney Awards (5th time in 6 years).

2. 2015:

• Best Private Bank in India, FinanceAsia (7th consecutive year).

• Best Bank in India, Euromoney Awards.

3. 2019:

• Best Domestic Bank, Asiamoney Best Bank Awards.

 • Best Private Bank for New Customer Segments, Global Finance 2020 Private Bank Awards.
4. 2024:

• Best Bank for Corporates in India, Euromoney Awards.

• Best for Equities in India, Euromoney Awards (10.76% ECM market share).

2.17.2. Rewards Programs

Kotak Mahindra Bank’s customer reward programs enhance its schemes:

1. Credit Card Rewards:

• Cards like Kotak League Platinum and Myntra Kotak Credit Card offer reward points (e.g.,
1,000 points = ₹100), cashback, and discounts on shopping, travel, and dining.
• Benefits include no-cost EMIs, lounge access, and co-branded perks with Myntra, PVR, Indian
Oil, and IndiGo.

2. Debit Card Rewards:

• Privy League Platinum Debit Card provides cashback, exclusive offers, and discounts at merchant
outlets.

3. Privy League Programme (2023):

• Premium banking for high-net-worth individuals, offering MMT Black Elite Membership,
Lafayette Luxury Concierge Services, and bespoke financial solutions.

2.18. Conclusion on Kotak Mahindra Bank

Kotak Mahindra Bank has firmly established itself as one of India’s leading financial institutions,
recognized for its excellence in corporate banking, digital innovation, private wealth management, and
customer-centric services. Recent awards from reputed global platforms such as Euromoney, The
Asian Banker, and The Asset reflect the bank’s commitment to innovation, transparency, and strategic
growth. With a strong leadership legacy and a forward-thinking approach, Kotak Mahindra Bank
continues to shape the future of Indian banking.