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What is public sector banks

Public Sector Banks (PSBs) are banks where a majority stake (i.e.
more than 50%) is held by a government.[1] The shares of these banks
are listed on stock exchanges. There are a total of 27 PSBs in India
[21 Nationalized banks + 6 State bank group (SBI + 5 associates) ].
In 2011 IDBI bank and in 2014 Bharatiya Mahila Bank were
nationalized with a minimum capital of Rs 500 cr.
Emergence of public sector bank
The Central Government entered the banking business with the
nationalization of the Imperial Bank Of India in 1955. A 60% stake
was taken by the Reserve Bank of India and the new bank was named
as the State Bank of India. The seven other state banks became the
subsidiaries of the new bank when nationalised on 19 July 1960.
[2]
The next major nationalisation of banks took place in 1969 when
the government of India, under prime minister Indira Gandhi,
nationalised an additional 14 major banks. The total deposits in the
banks nationalised in 1969 amounted to 50 crores. This move
increased the presence of nationalised banks in India, with 84% of the
total branches coming under government control.[3]
The next round of nationalisation took place in April 1980. The
government nationalised six banks. The total deposits of these banks
amounted to around 200 crores. This move led to a further increase in
the number of branches in the market, increasing to 91% of the total
branch network of the country. The objectives behind nationalisation
were:

To break the ownership and control of banks by a few business


families,

To prevent the concentration of wealth and economic power,

To mobilize savings from masses from all parts of the country,

To cater to the needs of the priority sectors total public sector


banks are 27 including IDBI and BMB

Public sector banks before the economic liberalisation


The share of the banking sector held by the public banks continued to
grow through the 1980s, and by 1991 the public sector banks
accounted for 90% of the banking sector. A year later, in March, 1992,
the combined total of branches held by public sector banks was
60,646 across India, and deposits accounted for Rs. 1,10,000 crore.
The majority of these banks were profitable, with only one out of the
27 public sector banks reporting a loss.
Problem, with nationalised banks reporting a combined loss of Rs.
1160 crores. However, the early 2000s saw a reversal of this trend,
such that in 2002-03 a profit of Rs. 7780 crores by the public sector
banks: a trend that continued throughout the decade, with a Rs. 16856
crore profit in 2008-2009
The public sector is the part of the economy concerned with
providing various governmental services. The composition of the
public sector varies by country, but in most countries the public sector
includes such services as the military, police, infrastructure(public
roads, bridges, tunnels, water supply, sewers, electrical
grids, telecommunications, etc.), public transit, public education,
along with health care and those working for the government itself,
such as elected officials. The public sector might provide services that
a non-payer cannot be excluded from (such as street lighting),
services which benefit all of society rather than just the individual
who uses the service.[1]

Businesses and organizations that are not part of the public sector are
part of the private sector. The private sector is composed of
the business sector, which is intended to earn a profit for the owners
of the enterprise, and the voluntary sector, which includes charitable
organizations.

The organization of the public sector (public ownership) can take


several forms, including:

Direct administration funded through taxation; the delivering


organisation generally has no specific requirement to
meet commercial success criteria, and production decisions are
determined by government.

Publicly owned corporations (in some contexts, especially


manufacturing, "state-owned enterprises"); which differ from
direct administration in that they have greater commercial
freedoms and are expected to operate according to commercial
criteria, and production decisions are not generally taken by
government (although goals may be set for them by government).

Partial outsourcing (of the scale many businesses do, e.g. for IT
services), is considered a public sector model.
A borderline form is as follows

Complete outsourcing or contracting out, with a privately owned


corporation delivering the entire service on behalf of government.
This may be considered a mixture of private sector operations with
public ownership of assets, although in some forms the private

sector's control and/or risk is so great that the service may no


longer be considered part of the public sector

PUBLIC SECTOR BANKS IN INDIA


Dena bank
Indian bank
Indian overseas bank
Oriental bank of commerce

Punjab national bank


Bank of india
Bank of Maharashtra
Bharatiya mahila bank limited
Canara bank
Central bank of india
Corporation bank
Punjab and sind bank
Syndicate bank
Union bank of india
United bank of india
UCO bank

The private-sector banks in India represent part of the indian


banking sector that is made up of both private and public sector
banks. The "private-sector banks" are banks where greater parts of
state or equity are held by the private shareholders and not by
government.
Banking in India has been dominated by public sector banks since the
1969 when all major banks were nationalised by the Indian
government. However, since liberalisation in government banking
policy in the 1990s, old and new private sector banks have reemerged. They have grown faster & bigger over the two decades since
liberalisation using the latest technology, providing contemporary
innovations and monetary tools and techniques.[1]
The private sector banks are split into two groups by financial
regulators in India, old and new. The old private sector banks existed
prior to the nationalisation in 1969 and kept their independence
because they were either too small or specialist to be included in
nationalisation. The new private sector banks are those that have
gained their banking license since the liberalisation in the 1990s.
Old private-sector banks[edit]
The banks, which were not nationalized at the time of bank
nationalization that took place during 1969 and 1980 are known to be
the old private-sector banks. These were not nationalized, because of
their small size and regional focus.[2] Most of the old private-sector
banks are closely held by certain communities their operations are
mostly restricted to the areas in and around their place of origin. Their
Board of directors mainly consist of locally prominent personalities
from trade and business circles. One of the positive points of
these banks is that, they lean heavily on service and technology and as
such, they are likely to attract more business in days to come with the
restructuring of the industry round the corner.

New private-sector banks[edit]


The banks, which came in operation after 1991, with the introduction
of economic reforms and financial sector reforms are called "new
private-sector banks". Banking regulationact was then amended in
1993, which permitted the entry of new private-sector banks in
the Indian banking s sector. However, there were certain criteria set
for the establishment of the new private-sector banks, some of those
criteria being:#The bank should have a minimum net worth of Rs. 200
crores.
1. The promoters holding should be a minimum of 25% of the
paid-up capital.
2. Reliance Capital, India Post, Larsen & Toubro, Shriram
Transport Finance are companies pending a banking license
with the RBI under the new policy, while IDFC & Bandhan
were given a go ahead to start banking services for 2015.
3. Within 3 years of the starting of the operations, the bank should
offer shares to public and their net worth must increased to 300
crores
List of the private-sector banks in India[edit]
Axis bank
Bank of Punjab
Centurian bank
Development credit bank
ICICI bank

Indusland bank
Kotak Mahindra bank
Yes bank
Times bank
Global trust bank
Balaji corporation bank
HDFC bank
Bandhan bank
Idfc bank

INTRODUCTION

Vijaya is a medium sized Public Sector Bank with its Corporate


Office in Bangalore, Karnataka, India. It is one of the nationalised
banks in India. The Bank offers a wide range of financial products and
services to the customers through its various delivery channels. The
Bank has a network of 1863 branches (March 2016) throughout the
country and over 3500 customer touch points including 1651 ATMs.
Vijaya Bank (VB) came into existence in 15th April of the year 1980,
as a consequence of the Government of India taking over the
undertaking of Vijaya Bank Ltd. The Bank is engaged in transacts all
types of banking business including foreign exchange. The bank has a
strong presence in the fast-growing southern states. Its business
activities are diversified and encompass merchant banking, credit
cards, ATMs, housing finance, fast collection services etc. The Bank
had sponsored its first Regional Rural Bank in the year 1985 underthe
name and style Visweswaraya Grameena Bank in March. This
Regional Rural Bank caters the needs of the target group belonging to
Mandya district of Karnataka State. VB introduced the novel scheme
under the name of Vijaya Vichar Vihar in the year 1989. During the
year 1992, the bank had introduced automatic renewal facility upto
four times in respect of short-term deposits accepted for periods from
forty-six days to one year for the convenience of the customers.VB
had entered into the Memorandum of Understanding (MoU) with the

Reserve Bank of India in the year of 1994 to fulfill definite


performance commitments. Also in the same year of 1994, the bank
introduced the new schemes viz. Vijaya Gift Bond Scheme and Vijaya
Service Card for enlarging its services to its business clientele. The
Bank opened its third exclusive NRI branch at Mapuca (Goa) and
established special NRI Cells at the branches in Tiruvalla, Kottayam,
Trivandrum and Kozhencherry (all in the Kerala State). During the
year 1995, VB had opened 33 new branches and also the bank opened
five Hi-tech Agricultural Finance branches at Bangalore, Coimbatore,
Delhi, Hyderabad and Lucknow. In the identical year of 1995, the
bank entered into an agreement with M/s. Oriental Exchange Co.,
WLL Manama, Bahrain providing for the Banks participation in the
said exchange companys day-to- day management. Vijaya Bank
launched a fully operational Custodial Services Division at Mumbai.
In the year 1996, VB had opened its first subsidiary, Vibank Housing
Finance Limited to add impetus to housing finance. Vijaya Bank
introduced three new loan schemes, namely, Vijaya Nivruthi, Vijaya
Krishi Vikas and Vijaya Mangala to cater to the credit needs of
pensioners, farmers and workingwomen respectively. The Bank had
also entered into tie-up arrangements with ICICI, Banking
Corporation Limited and Oman International Bank Ltd. VB had
introduced innovative banking service called Any Branch Banking in
the same year of 1996. the year 1997, Vijaya Bank had launched a
special agriculture credit plan targeted specifically at agriculture and
other, rural advances. The Bank also launched the special loan
recovery motivation scheme, which helped reduce the level of NPAs
from 11.6 per cent to 9.6 per cent. The Bank had entered into
domestic correspondent Banking arrangements with various private
sector banks and foreign banks during the year 1998. After a year, in
1999, Vijaya Bank had entered into Rs 200-crore take-out financing
agreement with the Housing and Urban Development Corporation
(HUDCO) for funding infrastructure projects. In the year 2000, VB
had introduced a new scheme named V-Star savings bank Account

Scheme. Vijaya Bank taped the capital market with an initial public
offering in the year 2000. The Bank had signed a pact with LIC in the
year of 2003 to offer Life insurance cover to all its existing as well as
its new deposit-holders. VB had unveiled a new electronic fund

remittance facility called V-REMIT, under which the bank customers


can electronically remit funds to the account holders in any bank. The
MoU was signed with M/s National Insurance Company Limited in
the year 2003 for marketing banc assurance products. Bank has
decided to amalgamate its own subsidiary VIBANK Housing Finance
Ltd. (VHFL) with the Vijaya Bank. Vijaya Bank had opened a Kiosk
that is exclusively for retail lending at its Ashoknagar Branch in
Mangalore and signed the MoU with Punjab National Bank and
Principal Financial Group of USA for a joint venture participation in
Asset Management Company. In the year 2004, the bank made tie-up
with NIC to offer free insurance policy. Punjab National Bank (PNB)
and VB had entered into a four-way partnership with Principal
Financial of the US and Berger Paints to set up an insurance broking
company. Vibank Housing Finance Ltd became a wholly owned
subsidiary of the bank in the identical year of 2004.
The Bank signed a pact with Nabard to co-finance agriculture,
agro processing, hi-tech agriculture and rural development projects.
Vijaya Bank launched the banks second city specific credit card - the
Hyderabad Card. During the year 2005, the bank made tie-up with
TAFE. In the year 2006-07, the bank implemented the Crore Banking
Solution (CBS) in additional 152 branches. VB opened 43 new
branches, upgraded 10 extension counters into full-fledged branches,
converted 2 regional foreign exchanges into full-fledged overseas
branches and also converted one capital market services branch into a
general banking branch in the year 2006-07. The bank had helped
11061 Self Help Groups in the same year by the way of loan

disbursement. In June of the year 2007, VB had inked a memorandum


of understanding (MoU) with credit rating agency ICRA, under which
ICRA will assign ratings to small scale industries

HISTROY
The birth of Vijaya Bank in the year 1931 was preceded by the
economic chaos created out of the Great Depression of 1927-30. The
worldwide economic depression had severe impact on the Indian
economy and the financial system. Moved by the pitiable conditions
of the agriculturists, Shri Attavara Balakrishna Shetty was determined
to devise some institutional remedy to annihilate their sufferings. Shri
AB shetty approached leading Bunt personalities to start a Bank with
the objective of extending credit facilities at a lower rate of interest to
enable the farmers to cultivate their lands and prevent them from
falling into the clutches of money lenders. Accordingly, Shri AB
Shetty involved 14 Bunts and established Vijaya Bank on October 23,
1931. In the beginning the Bank had an authorised capital of Rs. 5
lakh and an issued capital of Rs. 2 lakh. The paid up capital was Rs.
8670. Vijaya Bank was flagged off on 23rd October 1931. Late Shri
A.B.Shetty, along with other enterprising farmers in Mangalore,
Karnataka, founded the bank to inculcate banking habits in the
farming community of Dakshina Kannada district in Karnataka State.
In 1958, it was promoted and became a scheduled bank. From 1963 to
68, the Vijaya bank grew both in terms of size and stature 9 small
banks had merged with it, thus contributing to its growth and
advancement. On April 15, 1980, the bank was nationalized. Vijaya
Bank boasts of being one of the few banks which has undertaken the
principal membership of VISA International and MasterCard

International. Vijay Bank has been constantly focusing on


technological upgradation. As on October 2005, all the 913 branches
have been computerized, covering 97% of the bank and total business.

Growth & Nationalisation


Dr. Kishore Sansi, MD&CEO, Vijaya Bank.
The Bank grew steadily since its inception. The Bank became
a scheduled bank in 1958. After having buffeted the storms of the
Great Depression, surviving the 60s, when small banks were merged
with other banks as per RBI directive, Vijaya Bank emerged stronger
and began its journey of success. Under the Chairmanship of Shri.
Mulki Sunder Ram Shetty, Vijaya Bank steadily grew into a large All
India Bank with 9 smaller banks merging with it during 1963-1968.
During the year 1965, the Bank registered its own logo. The Banks
Head Office was shifted to Bengaluru on November 11, 1969. The
Bank was nationalised on 15 April 1980. At the time of
nationalization, the Bank had 571 branches, with a total business of
Rs. 605.95 crore and a staff strength of 9059. The present Head Office
building of the Bank at Mahatma Gandhi Road, Bengaluru was
inaugurated by the Honble President of India(then Honble Union
Finance Minister) Shri Pranab Kumar Mukherjee on 26.10.1984

Business Operation

The Banks total business is over Rs.2,16,000 crore comprising


deposits of Rs.1,25,441 crore and advances of Rs. 90,765 crore as at
31 March 2016. Basically being a retail bank, its topline growth owes
quite a lot to the retail segments. Retail advances of the Bank
constitute 26% of the gross credit

Network and Distribution


As on 31 March 2016, the Bank had a wide branch network of 1,863
branches comprising 395 Metro, 474 Urban, 508 Semi-urban and 486
Rural branches. Improving the presence and performance under
alternative delivery channels, especially internet and mobile banking
channel are key focus areas of the Bank. The Bank has 1651 ATMs as
on 31 March 2016. Vijaya Bank provides access to over 2.21 lakh
ATMs connected under National Financial Switch across the country.

Financial Inclusion Initiatives


In line with the countrys inclusive growth framework, the Bank has
been actively pursuing the agenda of Financial Inclusion. The Banks
initiatives in this direction aim at financial empowerment and

reaching banking services to the rural masses. Vijaya Bank has stood
up-to the mandate of our Prime ministers call, by opening Basic
Savings Bank Accounts under Pradhan Mantri Jan Dhan Yojana and
providing all the account holders with Rupay debit cards.

Corporate Social Responsibility Activities


The Bank has adopted formal CSR activities as per Government
directives. The Banks various corporate social responsibilities
include, among others, serving national priorities, promoting rural
development, adopting girl children up to their graduation, supporting
primary health and providing drinking water facilities etc. Besides
this, the Bank has been supporting various initiatives to help the
needy people by extending donations. In response to Hon. Prime
Ministers announcement on implementation of Swachchh Vidyalay,
the Bank has provided sanitation facilities to 56 Govt. Schools mostly
in rural areas. The Bank has established 32 Rural Health Centres
where patients are provided primary healthcare and medicines free of
cost.

Unique CSR Activity: Adoption of Girl Child


As part of its Corporate Social Responsibility, the Bank has devised a
unique programme to adopt girl children. The Policy of Girl Child
Adoption was introduced by the Bank in 2011 under which Bank
adopts girl children from SC/ST/ OBC/ economically weaker sections
/ backward areas/ poor families from the age of 5 years onwards to
promote girl child education, mostly from rural and backward areas.
As on date, Bank has adopted 209 girl children all over the

Branches & ATM Services


As of March 2009, Vijaya bank has a network of 1101 branches, 43
Extension Counters and 364 ATMs, spanning across all 28 states and
4 union territories in the country, with the highest number of branches
in its home state, Karnataka. At present, 736 branches, 38 extension
counters and 11 service branches of Vijaya Bank, covering 93.3% of
its total business, are functioning on CBS. At the same time, 747
branches are enabled with RTGS and NEFT.

Products & Services


Rural Banking
As main objective of Vijaya Bank was induce banking habits in
Farmers, it offers wide range of products and services such as saving
account, loans and advance facility to farmers, deposits , etc.
Personal Banking
It offers wide range of products in personal banking such as saving
account, fixed deposit, debit card, credit card, RTGS, NEFT facility
etc.

NRI Banking It also offers products and services catering NRI


Clients such remittances facility, loans, deposits etc.

Vijaya Bank offers various products and services specific to various


segments such as it has saving accounts for children, scheme for
women clientele, credit facilities to minority communities like
Zoroastrians, Buddhists are among others.
It also offers merchant banking facility and insurance policy.
Deposit Schemes
Savings Bank
V Platinum Savings Bank Account
Vijaya Saral Savings
Current Account
VStar Savings Scheme
Term Deposit
Loans &Advances
Retail Lending Schemes
Loans Against Securities
Non Fund Based Facilities
Advances to Agriculture, SSIs and Others
Government Sponsored Schemes
Special Schemes for Women
NRI Services
Deposits
Loans
Remittances

FOREX Branches
FCNR(B) Branches
Helpline for NRIs

Remittance Collection and Facilities


FOREX Remittances
Inland Remittances
Electronic Remittance Services
Inward / Outward Collection Instruments

Credit Cards
Domestic Cards
Global cards
Debit cards
FOREX market Information
Card Rates
Treasury

Other Services
Merchant Banking
Vijaya Raksha
V-Arogya Bima Policy
Credit Cards
Mutual Funds
Leasing
Hiring
Purchases

MERCHANT BANKING ACTIVITES


The major Merchant Banking Activities are:
Debenture Trustee Services
Banker to Issue
ASBA facility for IPOs, FPOs and Rights Issues
Demat Services
Cash Management Services
Money Transfer Services
Bancassurance
Vijaya Bank Issued Bonds

Banker to an Issue:
In terms of SEBI regulation our bank has registered itself with SEBI
asDebenture Trustee.-Registration No. INBI00000041
As a Banker to an issue the bank is undertaking following activities.
Collecting banker (acceptance of application and application
monies),acceptance of allotment or call monies Refund Banker
(Refund of application monies) Paying Banker(Payment of Dividend
Warrants/Interest Warrants)
ASBA facility for IPOs, FPOs and Rights Issues
ASBA means Applications Supported by Blocked Amount. ASBA
is an application containing an authorization to block the application
money in the bank account, for subscribing to an issue. If an investor

is applying through ASBA, his application money shall be debited


from the bank account only if his/her application is selected for
allotment after the basis of allotment isfinalized.

Eligibility
All Resident Individuals, HUF and QIBs having Demat a/c, PAN
No. and maintaining Current /SB/Operative Account with any
VIJAYA BANK
branches.
ASBA facility is available at all our branches. Kindly Contact Nearest
branch
for more information or contact our Controlling office at:
DP Cell ASBA Section
Ground Floor, VIJAYA BANK, Head Office
41/2 M.G. Road, Bangalore-560001
Ph -080- 25584066, Ext -383
Email Id : mbdasba@vijayabank.co.in
v Bancassurance
The Bank is the corporate agent for LIC of India and United India
Assuran Company Ltd. The Bank now provides through its all
branches total life and non-life insurance solutions to meet all your
insurance requirements through the products of India's leading
insurers.
Life Insurance:

Entire life insurance products range of LIC of India are now available
through the branches of VIJAYA Bank.

General Insurance:
For all your General Insurance needs, you need to look no further than
VIJAYA Bank as the products of the leading Indian transnational and
reputed general insurance Company i.e United India Insurance Co.
Ltd. are now available through all the branches of the our Bank.
VIJAYA BANK has also been tied up with Bajaj Allianz Co. Ltd
for Suraksha Kavach Yojana a Group Insurance Scheme to cover
natural as well as accidental death of key persons of the Business
Enterprises and individual borrowers to the extent of regular balance
outstanding in the loan accounts.
Insurance is the subject matter of solicitationM
All the products offered are through LIC of India, United India
Insurance Co. Ltd.
And Bajaj Allianz Co. Ltd. Kindly Contact Nearest branch for
more information.
Cash Management Services :
Vijaya Bank provides Local Cheque Collection, Up country Cheque
Collection,Bulk Cheque collection and DD Drawing facilities through
all branches tocorporate clients.
Local Cheque Collection Facility [LCC] :

Under this facility corporate can deposit the cheques with our
branches to be cleared in the local clearing and funds will be pooled at
any pooling branch designated by the Corporate clients.

Up Country Cheque Collection Facility [UCC] :


Under this facility corporate clients can deposit the cheques drawn on
outstation centers and proceeds will be pooled at any pooling branch
designated by Corporate clients.
Bulk Cheque Collection Facility :
Under this facility corporate clients can deposit their bulk (large
number)instruments of small value to be cleared in the local clearing
and funds will be pooled at any pooling branch designated by the
Corporate
DD Drawing Arrangement :
Under this facility corporate clients can draw the Demand Drafts on
the branches of Vijaya Bank wherever they do not have branches.
Money Transfer Service Scheme (MTSS)
Money Transfer Service Scheme (MTSS) is a quick and easy way
oftransferring personal remittances from abroad to beneficiaries in
India. Only inward personal remittances into India such as
remittances towards family maintenance and remittances favoring
foreign tourists visiting India are permissible. No outward remittance
from India is permissible under MTSS

Our Bank as Sub Agent for money transfer business


Bank is tied up with both UAE Exchange Financial Services Ltd.
(UAEEFSL) and Thomas Cook India Ltd.(TCIL) as their sub agent
for the Money Gram money transfer service. (Please click here for
viewing the list of branches designated to handle money transfer
business of Money Gram)

A) Money Gram services of UAE Exchange Financial Services


Ltd. (UAEEFSL)
The branches in the States of Karnataka, Andhra Pradesh, Tamilnadu
& Kerala are designated to provide services under UAEEFSL.
B) Money Gram services of Thomas Cook (India) Ltd.
All branches in the country other than the branches in the southern
states ie Karnataka, Andhra Pradesh, Tamilnadu & Kerala are
designated to provide services under Thomas Cook (India) Ltd.
Xpress money
Xpress Money is a brand name for the money transfer service of UAE
Exchange Centre LLC, Abu Dhabi who is the Overseas Principal.
UAEEFSL is the Principal Agent of UAE Exchange Centre for Xpress
Money in India.
We are also tied up with UAE Exchange and Financial Services
Ltd (UAEEFSL) as its Sub Agent for Money Transfer business
underXpress Money
All the branches of the Bank are designated to provide services under
Xpress Money.

Banking Scenario
Indian banking sector witnessed several challenges during 201516
and the growth of the Indian banking sector moderated further during
the year. The banking sector experienced a slowdown in balance sheet
growth and the profitability of public sector banks (PSBs) diminished
with their RoA declining significantly. The deterioration in the asset
quality of banks continued during the year with rise in volume and
proportion of stressed assets. Gross nonperforming advances of
scheduled commercial banks as a percentage of total advances
showed substantial increase during the year. During FY 201516,
Scheduled Commercial Banks Credit growth showed deceleration.
Most of the growth in Bank credit has come from retail segment
followed by agriculture during201516. Liquidity conditions have
remained broadly comfortable during 201516, except transient
conditions. However, barring transient periods of surpluses on
account of Government spending, liquidity conditions generally
tightened in the second half of the financial year as the pace of
Government expenditure slowed and the seasonal increase in currency
demand for the festival season took hold. Monetary policy actions
during 201516 were highly accommodative. With the easing of
inflationary conditions, the RBI has eased the monetary policy stance
by reducing policy repo rate under the liquidity adjustment facility

(LAF) by 75 bps. However, the transmission of changes in policy rate


to deposit and lending rates of banks also remained muted in 2015
16.

International Banking
Banks export credit as at 31.03.2016 registered a YoY growth of
0.33% and stood at Rs. 1576.60 crore. It is in spite of global
slowdown and negative export growth of the country as a whole. Out
of the above, quantum of export credit extended by the Bank in
foreign currency was USD 32.61 million. As at March 31, 2016,
foreign exchange business turnover of the Bank stood at Rs.
22,258.37 crore, recording a growth of 5.13 % over the previous
financial year. Bank has successfully implemented IBSBR, eBRC,
EDPMS, and eBIZ projects of RBI besides fully operationalizing
CFPC by integrating process flow from branches through DMS
software. Banks total NRI deposits as at 31.03.2016 stood at Rs.
3658.32 crore as against Rs. 2998.96 crore as at the end of previous
financial year, thereby recording a growth of 22 %. During the
financial year 2015 16, the Bank has continued to extend
Speed/Flash Remittance facility to UAE Exchange Centre LLC, Al
Ansari Exchange UAE, Wall Street Exchange, UAE and Al Bader
Exchange, UAE to enable the NRIs from Gulf Countries to
electronically remit funds to their account with our branches
anywhere in India. In addition to the above, the Bank also has Rupee
Drawing Arrangement (RDA) with Oman United Company LLC,

Oman to facilitate rupee remittances to the accounts in India. NRI


Customer Cell set up at Head Office, Bangalore is exclusively
catering to the requirements of our NRI customers. The Banks
fortnightly eNewsletter Vijaya NRI Digest, has evoked good
response among the NRIs particularly in the Middle East /Gulf
countries.

Export & Import Credit


The Bank is active in meeting the financial requirements of importer
and exporter clients, both in domestic and in foreign currency. Banks
47 branches across the country are designated to handle foreign
exchange business
Agricultural Finance
Agricultural advances of the Bank as at March 2016 stood at Rs.
13771 crore, constituting 15.05% of the Adjusted Net Bank Credit.
Agriculture credit has shown yoy growth of 20.91 %. During the
financial year 201516, Bank launched a new scheme for Financing
Food and Agro Processing units with liberal terms and conditions to
increase the credit flow to Food and Agro processing sector. Bank
launched Revised Debt Swap Scheme to liberate the farmers and the
micro entrepreneurs in rural and urban areas from the clutches of local
money lenders.
Kisan Credit Card Scheme
The outstanding level of advances under Vijaya Kisan Card (VKCs)
stood at Rs. 2454 crore through 149820 accounts as at 31.03.2016.
The Banks Kisan Cards are ATM enabled unde RuPay platform.

Advances to Weaker Sections


As at March 2016, the outstanding weaker section advances of the
Bank stood at Rs. 12146 crore, which constitutes 13.28% of the
ANBC against the norm of 10%. The Weaker Section advances
increased by Rs. 3461 crore, registering a growth rate of 39.85 % over
March 2015.

Credit to Women Beneficiaries


Advances to Women beneficiaries stood at Rs. 7790 crore as at March
2016 as against Rs. 6438 Cr as at March 2015, registering a growth
rate of 21%. Against the stipulated target of 5% of Adjusted Net Bank
Credit (ANBC), the Banks achievement stood at 8.51% of ANBC.
Lead Bank Scheme
Bank is having Lead Bank responsibility in three districts i.e. in
Mandya, Dharwad and Haveri districts of Karnataka State. All our
Lead District Managers have been effectively coordinating with all
Bank branches in their Districts to ensure achievement of targets
under Annual Credit Plan, Govt sponsored schemes, Financial
Inclusion, Social Security Schemes, Direct Benefit Transfer Scheme
etc. In these three Districts, total credit share of the Bank under
Annual Credit Plan is Rs. 834 crore against the target of Rs.841 crore
as at March 2016.
Lending under Govt. Sponsored Schemes
Implementation of Govt. sponsored schemes receives the utmost
attention of the Bank. The credit flow under various Govt. sponsored
schemes is as under

Advances to SC / STs
Total advances to SC / STs stood at Rs. 1747 crore as at March 2016,
against Rs. 1515 crore as at March 2015, registering a growth rate of
15.31 %.

Credit to Minority Communities


Advances to Minority Communities stood at Rs. 5197 crore as at
March 2016, constituting 15.11 % of total Priority Sector advances as
against the Government norm of 15 %.
VIBSETIs (Vijaya Bank SelfEmployment Training Institutes)
The Bank has established Vijaya Bank Self Employment Training
Institutes [VIBSETIs] at Mandya and Haveri in Karnataka state and at
Indore in Madhya Pradesh. The Institutes have been conducting
various vocational training / skill upgradation / awareness
programmesnEntrepreneur Development Programmes etc. All the
three VIBSETIs have been graded AA,highest grading, for the year
201415 by Ministry of Rural Development (MoRD), GoI. During the
financial year 201516, VIBSETIs have conducted 98 programmes
and trained 2734 beneficiaries. Since inception, totally 1462
programmes have been conducted benefitting 50138 beneficiaries.
Settlement of trained candidates with gainful selfemployment
ventures is 71.61 % as at 31.03.2016.

Vijaya Rural Development Foundation (VRDF)


With a view to focus the attention of rural masses on the need to
modernize agricultural practices, for upgradation of skills and
knowledge in various selfemployment ventures and for achieving all
round socioeconomic development, Vijaya Rural Development
Foundation (VRDF) was promoted by the Bank in the year 1990 at
Mangalore. VRDF has been conducting various awareness
programmes covering a wide range of subjects through the Village
Development Councils (VDC). At present, 33 such VDCs are
functioning under VRDF. The Foundation has expanded its activities
to other districts like Haveri, Dharwad and Mandya, where the Bank
has Lead Bank Responsibility. During the financial year 201516,
VRDF has conducted 202 programmes benefiting 16520 persons.
Apart from Free Health camps, Scholarship to meritorious students,
Training on cultivation aspects of various crops and animal husbandry
activities etc., the following novel programmes were conducted
during 201516 l Programmes on Soil testing and recommending the
nutrients for the particular soil/crop which is in tune with Prime
Minister Soil Health Card
Scheme.

Arranged Radio classes to 10th Class rural school students in


Mathematics and English through Akashavani Mangalore, wherein
sessions were taken by expert teachers in the field. VRDF has
provided 100 radio sets to rural Government schools.
Formed 25 Future Farmers Clubs to encourage the students to take
interest in agriculture and allied activities. Training on Dairying,
Honey bee rearing, Mushroom Cultivation, Farm Mechanization etc.,
were imparted for these students.

Education Loan
Utmost importance is given to extend education loans to deserving
meritorious students. During the year, fresh education loans were
sanctioned to 10170 students amounting to Rs. 450 crore. The
education loan portfolio grew by Rs. 216 crore to reach a level of
Rs.1119 crore as on 31.03.2016 recording growth rate of 24%. Bank
has also surpassed the KPI target of 20% for disbursement of
education loans by achieving a level of 26%.Bank has integrated its
system with Vidya Lakshmi portal so as to facilitate the students for
on line submission of application for education loan, tracking the
status of applications, processing/sanction of proposals by branches
and updating the status etc. The Bank has been conferred with Out
Look Money award under Education Loan Provider of the Year
category.

Pradhan Mantri Jan Dhan Yojana (PMJDY)


was launched by the Honble Prime Minister on28.08.2014 with the
objective of bringing all unbanked households/ families of the country
into banking fold by providing them with Basic Bank Accounts,
Rupay cards with accidental insurance coverage of Rs. 1.00 lakh, life
insurance coverage of Rs. 30,000/ and overdraft facility upto Rs.
5000/ based on the satisfactory transactions in the account. Bank has
been allotted with 1151 Sub Service Areas comprising of 3410
villages and 432 wards on a Pan India basis to provide
banking facilities.
Bank has provided Banking Facilities to these villages through 289
branches and the remaining through Bank Mitras (Business
Correspondent Agents). Bank has conducted household survey in all
allotted SSAs and Wards and covered all the households with at least
one bank account. As on 31st March 2016, Bank has opened 15.45
Lakh Basic Savings Bank Deposit accounts under PMJDY with a total
savings of Rs. 158.35 crore and all the account holders are provided
with Rupay debit cards. Aadhaar numbers have been seeded in 8.42

lakh accounts. Bank has sanctioned Overdraft facility to 37304


PMJDY account holders amounting to Rs. 101.35 Lakhs.

Direct Benefit Transfer


Bank is actively implementing the modified DBTL programme of the
Govt. of India, by seeding Aadhaar number of LPG consumers into
their accounts. SMS alerts are also sent to all the customers regularly
for seeding Aadhaar numbers into their accounts through various
modes. Electronic Benefit Transfer Bank is disbursing Social Security
Pensions / MNREGA amounting to more than Rs. 8.00 crore per
month to more than two lakh beneficiaries in Mandya District through
Bank Mitrs under one district one Bank Model scheme.

INFORMATION TECHNOLO GY
The Bank always in forefront to offer its products and services to the
customers based on latest technology. This helps the Bank to increase
the customer experience and satisfaction. During the financialyear
201516, the Bank has introduced / upgraded its product and services
as per the latest available technology. The Banks instinct to adopt

technology and to offer latest products and facilities to customers


helps the Bank to stay competitive in the industry. The following are
the some of the IT based main initiatives taken by the bank during the
year.
Missed Call Services (FreeBuzz)
Bank is providing missed call services to the customers &
enable them to know the account balance and mini statement. The
ease of giving missed calls with zero charges provides a
hugeadvantage to the customers.

VFee Hive
Banks inhouse software development team has developed a unique
application for collection of fees for Educational Institutions,
collection of monthly maintenance fee by Apartments and collection
of fees by Clubs, etc. It is equipped with unique features like
integration of other payment channels like debit card, credit card and
internet banking. Prestigious institutions like IIMCalicut, Army
Public School Delhi, Yenepoya College Mangalore and Mount
Carmel College Bangalore etc. are availing this service. The
application was implemented for various new institutions in the year
including Dr. A. P. J. Abdul Kalam Technical University Uttar
Pradesh, MSRIT Bangalore, Motilal Nehru National Institute of
Technology and Vasavi Pearl Apartment.
Vepassbook+
Banks inhouse software development team has developed mobile
application for accessing account details / to get transaction details.
The application is loaded with additional customer friendly features
like facility to add notes to each transaction, facility to maintain

various personal account heads and to add pass book transactions to


these accounts on a single click, facility to add notes to each
transaction, etc. A Page with latest offerings and information like
interest rate of the Bank with links to reach the website of the Bank
and facility to refer us to a friend is also available in this application.
New version of the software VePassbook+2.00 with attractive
features like reset of password online, maintain financial calendar,
locate our branch/ATMs, display details in Hindi/ Kannada languages
etc. released during the current year. Already 2,73,488 customers have
registered for availing this facility.

Internet Banking
The Bank has upgraded its internet banking, VNet Banking and it is
now responsive i.e. it can be seamlessly used on laptop, mobile or any
handheld device. VNet Banking is providing services like balance
enquiry, account statement, intrabank andinterbank fund transfers
through RTGS/NEFT, transactions related SMS alerts, payment of
Indirect / Direct taxes, State commercial Taxes, utility bill payments,
online temple donations & online donations to Prime Ministers
Relief Fund (PMRF) and others. The addon features of
Vnet banking are:
Online FD/RD account opening
Password can be reset online
Creation of Userid and Password credentials online.
Customers can view their PPF account and transfer funds to
PPF Account from their linkedoperative accounts using VNet
Banking facility.
Customer can View their Vijaya Bank Credit Card statement.
Customer can pay Import & Export custom duties.

Mobile Banking
VMobile Banking, the channel of the Bank for performing banking
activities like balance enquiry,account statement, mobile recharge,
intra and interbank funds transfer using NEFT, Mobile Recharge,
DTH recharge etc., with their mobile handset using SMS/ GPRS
modes of communication. Immediate Payment Service IMPS
(P2PPerson to Person), an initiative from NPCI (National Payment
Corporation of India) has been implemented for the benefit of the
customers using Mobile Banking services to perform the transactions
24x7 within and across the banks using MMID (Mobile Money
Identifier). IMPS (P2A Person to Account) is implemented in
Banks existing Mobile Banking services, wherein the customers can
do funds transfer using beneficiarys A/c No. and IFSC code, without
the use of MMID. The Bank has launched new version of Mobile
Banking with enhanced look and feel, and additional features like
facility for customers to receive notifications from the Bank, add
remarks to fund transfer transactions, to generate application
password by themselves, and a host of other customer friendly
options. The mobile banking is made available in bilingual (Hindi

&Englsih). Banks Mobile Banking has been enabled for IMPS


payment using MMID, where customer can initiate the transaction
based on beneficiary MMID and Mobile Number. The Bank has also
enabled both the options of IMPS merchant payment i.e PUSH and
PULL. Banks Mobile Banking offers the facility to do online
merchant payment on any biller site under IMPS options using their
MMID, Mobile Number and OTP.

Kotak Mahindra Bank


Is an indian private sector banking headquartered
in mumbai, maharashtra, india. In february 2003,reserve bank of
india (rbi) gave the licence to kotak mahindra finance ltd., the
group's flagship company, to carry on banking business. [2] it
offers a wide range of banking products and financial services for
corporate and retail customers through a variety of delivery channels
and specialized subsidiaries in the areas of personal
finance, investment banking, life insurance, and wealth management.
As of 30 september 2014, kotak mahindra bank has a network of 641
branches and over 1,159 atms spread across 363 locations in the
country. The bank, which has garnered positive reviews from its
customers and clients [3] before its merger with ing vysya, had
around 29,000employees. [4] in 2014, it was the fourth largest private
bank in india by market capitalization.
About Kotak Mahindra Bank

Kotak Mahindra Bank (KMB) is among the leading financial


organisations of India, with a rangeof financial services that cater to
the day-to- day requirements of the customers. Kotak Mahindra
Bank's products span across various verticals such as
commercial banking, stock broking, mutual funds, life insurance and
investment banking, so that diverse needs of individuals and corporate
sector are comfortably taken care of. Kotak Mahindra Bank had a net
worth of more than Rs. 19,076 crore (2014) with the branches,
franchisees, representative offices and satellite offices spread across
many cities and towns in India. It also has offices globally such as in
New York, London, San Francisco, Dubai, Mauritius and Singapore.
The Kotak Mahindra Group lends services to approximately 15
million customers. The Kotak Mahindra Group was founded in 1985
by Uday Kotak and came to be known as Kotak Capital Management
Finance Limited, promoted by Uday Kotak, Sidney A. A. Pinto and
Kotak &Company. A stake in the Kotak Mahindra Group was aken in
by industrialists Harish Mahindra and Anand Mahindra and this was
the time when the company changed its name to KotakMahindra
Finance Limited

History
Kotak Mahindra group, established in 1985 by Uday Kotak, is an
Indian financial services conglomerate. In February 2003, Kotak
Mahindra Finance Ltd. (KMFL), the Groups flagship company,
received a banking licence from the Reserve Bank of India (RBI).
With this, KMFL became the first non-banking finance company in
India to be converted into a bank Kotak Mahindra Bank Limited
(KMBL). 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). This approval created banking history
since Kotak Mahindra Finance Ltd. is the first nonbanking finance
company in India to convert itself in to a bank as Kotak Mahindra
Bank Ltd. Today, the bank is one of the fastest growing bank and
among the most admired financial institutions in India. The bank has
over 323 branches and a customer account base of over 2.7 million.
Spread all over India, not just in the metros but in Tier II cities and

rural India as well, it is redefining the reach and power of banking.


Presently it is engaged in commercial banking, stock broking,mutual
funds, life insurance and investment banking. It caters to the financial
needs of individuals and corporates. The bank has an international
presence through its subsidiaries with offices in London, New York,
Dubai, Mauritius, San Francisco and Singapore that specialize in
providing services to overseas investors seeking to invest into India.

Products and Services


The bank offers complete financial solutions for infinite needs
of all individual and nonindividual customers depending on the
customer's need delivered through a state of the art
technology platform. Investment products like Mutual Funds,
Life Insurance, retailing of gold coins and bars etc are also
offered. The bank follows a mix of both open and closed
architecture for distribution of the investment products. All this
is backed by strong, inhouse
esearch on Mutual Funds.
The banks savings account goes beyond the traditional role of
savings, and allows us to put side a lot more than just money.
The worryfree feature of Savings Account provides a range
of services from funds transfer, bill payments, 2way sweep
through our ActivMoney feature and much more. We can place
standing instructions for investment options that can be booked
through Internet or through Phone banking services. The

Savings Account thus provides for attractive returns earned


through a comprehensive suite products and services that offer
investment options, all delivered seamlessly to the customer by
well integrated technology platforms.
Apart from Phone banking and Internet banking, the Bank offers
convenient banking facility through Mobile banking, SMS
services, Netc@rd, Home banking and BillPay facility among
others.
The Depository services offered by the Bank allows the
customers to hold equity shares, securities, bonds and other
securities in electronic or Demat forms.

The Salary 2 Wealth offering provides comprehensive


administrative solutions for Corporates with features such as
easy and automated web based salary upload process thereby
eliminating the paper work involved in the process, a dedicated
relationship manager to service the corporate account,
customized promotions and tie ups and many such
uniquefeatures. The whole gamut of investment products and
investment advisory services is available to the salary account
holders as well.
For the business community, the bank offer comprehensive
business solutions that include the Current Account, Trade
Services, Cash Management Service and Credit Facilities. The
banks wholesale banking products offer business banking
solutions for longterm investments and working capital needs,
advice on mergers and acquisitions and equipment financing. To
meet special needs of the rural market, the bank has dedicated
business offerings for agricultural financing and infrastructure.
Its Agriculture Finance division delivers customised products

for capital financing and equipment financing needs of our rural


customers.
For financial liquidity the bank offers loans that meet personal
requirements with quick approval and flexible payment options.
To complete the personal financial offerings space, the bank
now offers Kotak Credit Card which is a hasslefree, transparent
product that also happens to be the first vertical credit card in
the industry.
Kotak Mahindra Bank addresses the entire spectrum of financial
needs of NonResident Indians. The bank has tieup with the
Overseas Indian Facilitation Centre (OIFC) as a strategic
partner, which gives them a platform to share their
comprehensive range of banking and investment products and
services for Non Resident Indians (NRIs) and Persons of Indian
Origin (PIOs). Their Online Account Opening facility and Live
Chat service helps to get in touch at the comfort of homes and at
the convenience.
Awards
ICAI Award Excellence in Financial Reporting under Category 1
Banking Sector for the year ending 31st March, 2010
Asiamoney Best Local Cash Management Bank 2010
IDG India Kotak won the CIO 100 'The Agile 100'
award 2010
IDRBT
Banking Technology Excellence Awards Best Bank Award in IT
Framework and Governance
Among Other Banks' 2009
Banking Technology Award for IT Governance and Value
Delivery, 2008
IR Global Rankings Best Corporate Governance Practices Ranked
among the top 5
companies in Asia Pacific, 2009
FinanceAsia Best Private Bank in India, for Wealth Management
business, 2009 Kotak Royal Signature Credit Card Was chosen

'Product of the Year' in a survey conducted by Nielsen in


2009
IBA Banking Technology Awards
Best Customer Relationship Achievement Winner 2008
& 2009
Best overall winner, 2007
Best IT Team of the Year, 4 years in a row from 2006 to 2009
Best IT Security Policies & Practices, 2007
Euromoney Best Private Banking Services (overall), 2009
Emerson Uptime Champion Awards Technology Senate Emerson
Uptime ChampionshipAward in the BFSI category, 2008 2010
Best Investment Bank in India, 2010
Best Equity House in India, 2010
Best Broker in India, 2010
Best Domestic Equity House, 2010
Best Local Brokerage in the Asiamoney Brokers Poll 2010
Best Investment Bank in India, 2010
Best Bank for Equity Finance in India, 2010
Best Domestic Investment Bank, 2010
Best Investment Bank in India, 2006, 2007, 2008, 2009 &
2010
Best Equity House in India, 2008 & 2010
Best Domestic Equity House, 2008, 2009 & 2010
Kotak Mahindra Bank has launched a credit card called Kotak
Trump Card that offers 10% cash back on dining as well as
movie and play spends. Kotak Mahindra Bank (KMB) has
introduced Stock Ace, a new product offering for individual
ustomers which provides them the power of instant liquidity.
2011
Kotak Mahindra Bank launches interbank mobile payment
service
Milestones

1986 Kotak Mahindra Finance Ltd started the activity of Bill


Discounting
1987 Kotak Mahindra Finance Ltd entered the Lease and Hire
Purchase market
2003 Kotak Mahindra Finance Ltd. converted into a
commercial bank the first Indianm company to do so.
2009 Kotak Mahindra Bank Ltd. opened a representative
office in Dubai. Entered
Ahmedabad Company Kotak Group modity Exchange as
anchor investor.

Products and Services


1. Bank
2. Credit Cards
3. Life Insurance
4. Mutual Funds
5. Car Finance
6. Securities
7. Institutional Equities
8. Investment Banking

9. International Business
10. Kotak Private Equity
11. Kotak Realty Fund
12. Wealth Management

Services of Kotak Mahindra Bank


Deposit Accounts
Savings Account
Current Account
Term Deposits
Corporate Salary Accounts
JIFI Account
Safe Deposit Locker
Kotak 3-in- 1 Account

Convenience Banking
Net Banking
Mobile Banking
Phone Banking
ATM Network
Money Watch
Hashtag Banking
Kotak Payment Gateway
Insta Balance Service
Immediate Payment Service
Alerts
SMS Banking
Cash Deposit Machine
Investment and Insurance
Demat
Mutual Funds
Life Insurance
Qualified Foreign Investor

ASBA
National Pension System
Kotak Mahindra Bank Loans
Kotak Mahindra Bank loans comprise Education Loans, Commercial
Loans, Home Loans, Personal Loans and Loans Against Property to
name a few. Kotak Mahindra Bank Limited belongs to the leading
Indian financial conglomerate Kotak Mahindra Group.
Kotak Mahindra Bank Home Loans
Kotak Home Loans come with a host of attractive features. Some of
the salient features are described below:
High loan eligibility for businessmen
Doorstep service
Wide array of offerings
Absence of hidden charges
Simplified documentation
Life insurance options
Kotak Mahindra Bank Personal Loans
Loans Against Property is a unique product offered by Kotak
Mahindra. This loan can be used for issues like debt consolidation,
educational finance, emergencies and the like. Some key features of
this loan are given below:
Heightened loan eligibility for businesspersons

Loans are available against both commercial and residential


properties
Personal accident insurance comes free with the loan
Loan range is from Rs. 10 lakh to Rs. 3 crore
Getting personal loans offered by Kotak Mahindra Bank Limited is
fast and easy. These loans are also known as Jaldi Loans. The loan
range is from Rs. 50,000 to Rs. 50 lakh. Easy and flexible EMIs are
available for repayment. The entire process involves minimal
paperwork. Loan approval period can be as low as 72 hours. There are
a host of otheprivileges associated with this loan. Apart from these,
Kotak Mahindra Bank Limited also offers commercial loans under the
head of Retail Assets. These loans can be used for a variety of
financing purposes like Commercial Vehicle Financing, Working
Capital Financing, Infrastructure Financing and Financing of Tractor
and Farm Equipment.

Kotak Mahindra Bank Education Loans


A student can avail a maximum of Rs.10 lakh of education loan for
education in India and Rs. 20 lakh for education oversees. The
beneficiary should at least be 21 years old at the time of loan being
provided and a maximum of 70 years old at the time of maturity of
the loan. Loan is provided to only Indian nationals.
FINANCIAL HIGHLIGHTS
Pursuant to the approval of the Reserve Bank of India to the Scheme
of Amalgamation of ING Vysya Bank Ltd. (IVBL) with Kotak
Mahindra Bank Ltd. (the Bank), IVBL merged with the Bank
effective from 1st April 2015. The current year consolidated and
standalone figures include operations of the erstwhile IVBL. Hence,
the previous year figures are not comparable.
BONUS ISSUE OF SHARES

During the year, pursuant to approval of the shareholders of the Bank


at the Annual General meeting held on 29th June 2015, your Bank
issued 91,28,41,920 Bonus shares in the ratio of 1:1
i.e. one equity share for every one equity share held on the Record
Date, to the Members on 10th July 2015.
DIVIDEND
Your Directors are pleased to recommend a dividend of Rs. 0.50 per
equity share entailing a payout of Rs. 110.53 crore including dividend
distribution tax. The dividend would be paid to all the shareholders,
whose names appear on the Register of Members/Beneficial Holders
list on he Book Closure date.
CAPITAL
During the year, your Bank has allotted 99,91,715 equity shares
(adjusted for bonus) arising out of the exercise of Employees Stock
Options granted to the employees and wholetime directors of your
Bank and its subsidiaries. As per the ESOP Schemes of erstwhile ING
Vysya Bank Ltd. (eIVBL), the stock options granted to the employees
vested on an accelerated basis upon the merger. Consequently, the
number of stock options on which vesting was accelerated was
1,04,91,900 (on a post swap basis, adjusted for bonus shares).
Post allotment of equity shares as aforesaid and the bonus allotment,
the issued, subscribed and paidup share capital of your Bank stands
at Rs. 9,17,19,10,790 comprising of 1,83,43,82,158 equity shares of
Rs. 5 each as on 31st March 2016. Your Bank is well capitalised and
has a Capital Adequacy Ratio (CAR) under Basel III as at 31st
March 2016 of 16.34% with Tier I being 15.28%. During the year,
your Bank has not issued any capital under Tier II. As on 31st March
2016, outstanding Unsecured, Redeemable NonConvertible,
Subordinated Debt Bonds were Rs. 969.7 crore and outstanding
Unsecured, NonConvertible, Redeemable Debt Capital Instruments
Upper Tier II stood at Rs. 806.31 crore.
TERMINATION OF GDS PROGRAM

The Global Depository Shares (GDS) of the Bank were listed on


Luxembourg Stock Exchange. Consequent to the issuance of notice of
termination of the GDS program by the Bank to the Custodian and the
Depository, the Depository Agreement entered into between the Bank
and the Depository was terminated. Subsequently, the GDS program
has been terminated with effect from 4th September 2015.
OPERATIONS
Consumer Banking
The merger of ING Vysya Bank (IVBL) with your Bank brought in
577 branches and 657 ATMsfrom the erstwhile IVBL. Your Bank
consolidated its network presence through a measured expansion of
its footprint across the country and as of 31st March 2016 had 1333
branches and 2032 ATMs, covering 706 locations. Of the 74 new
branches commissioned this year, 32 were in rural and semiurban
locations. Your Bank added about 10.96 lac new customers this year
across core banking products of savings and checking accounts, term
deposits, overdrafts and nonresident accounts. Your Bank rolled out
several initiatives aimed at offering a superior and differentiated
customer experience. Some key ones are:
Products and Services
l Launched its first ELobby at Andheri Metro Station, Mumbai. The
elobby offers a host of self service capabilities such as ATM,
Banking Kiosk, Tablets, Surface Table, etc. which can be used by both
customers and noncustomers. l Enhanced its suite of products
positioned at specific customer segments and launched two
newpropositions, MY FAMILY a savings bank proposition tailored
exclusively for the entire family. The proposition gives the benefit of
pooling in balances across family members & also gives them the
benefit of a dedicated relationship manager for the family, and,
ALPHA a savings bank proposition linked to investments. The
customer gets the benefit of a NMC waived savings account when
they choose an RD (or) MF SIP (or) NPS alongwith a term insurance
premium of Rs. 300 per month (which offers a cover of Rs.20 lac)
linked to their savings account. The proposition also offers Cash Back

on Debit Card spends & is targeted for the age group of 1855.l
Tied up with Thomas Cook and Kuoni Travels to offer a Holiday
Savings Account linked to a Recurring Deposit. Customers get benefit
of various schemes & offers launched by these travel companies
and the banking linkage enables them to save on a monthly basis to
facilitate the holiday expense. l Appointed as Authorised Collection
Centre (ACC) by Stock Holding Corporation of India Ltd
SHCIL) for providing Estamping facility in the states of Punjab an
Rajasthan.
Appointed as one of the collecting Banks for Government of
Indias Sovereign Gold Bonds and was actively involved in
raising subscriptions across all three tranches.
Launched three new Current Account products Kotak Pro
Plus, Kotak Elite Plus and Kotak
Ace Plus offering more efficient cash management in select
locations.
Introduced Kotak Cheque Protect, a calibrated credit oriented
program for offering cheque
protection facility to existing customers for honouring cheques
in the event of shortfall in the bank account, based on certain
preapproved parameters.
Implemented Foreign Account Tax Compliance Act (FATCA) /
Common Reporting Standard (CRS) which requires the Bank to
carry out due diligence of its customers to identify the
individuals and entities which fulfill the indices as prescribed by
the regulatory bodies and reporting to the Indian tax authorities
for onward submission of information to foreign authorities as
appropriate.
Technology
With the announcement of the merger with ING Vysya Bank, your
Bank took up the initiative of merging the technology systems and
data of the two banks. The merger provided an opportunity to
leverage the best of breed systems from both banks. As the
technology integration progressed across business verticals, your
Bank identified synergies in systems and capabilities to optimize costs

across the technology operations of the two banks. The merged


systems will provide a standard customer experience across all
channels to all customers of the merged entities. Customer data
security and risk management need to keep pace with digital
offerings. With this in mind, the Distributed Denial of Service was
augmented with an inpremise solution. A fraud management solution
to track customer transactions across channels was implemented. On
the regulatory side, a new Enterprise Risk System was implemented
for the Value at Risk calculation of the treasury products.
Digitization
Focus on creating more and more digitally enabled services across
channels remained a keypriority for your Bank in this year. Some of
the highlights being:
Launched a comprehensive microsite for New Pension System
with various calculators and educative content to demystify
the concept of pension and also enable people to get started
with opening their pension account online.
Launched a real time customer acquisition platform for
personal loan, where a customer PAN,Adhaar & CIBIL
are checked real time & decision about the loan amount
and interest rate can be given instantly.
o Launched Preapproved Personal Loan on Net Banking
for salaried customers. This enables a prequalified
customer to apply for personal loan while logged into the
netbanking account and the disbursed amount is instantly
credited to customers banking account. Launched tab
based account opening process for Saving Account. This is
an endtoend digitized workflow, from lead capture to
account set up, thereby reducing the processing time and
enhancing customer experience.
Hashtag banking was given further fillip by creating capability
to order a book or special promotional movies by just a single
tweet.

Launched Kotak Bharat Banking Indias first internetfree


app. This app does not need internet to transact. Customer can
do 25 different transactions including mobile recharge and small
value fund transfer. The app is available in 6 languages (Hindi,
Gujarati, Marathi, Tamil, Kannada and English). Response
messages within the app will also be in regional language.
Rolled out estore on Net Banking after successful roll out of
mstore on banking app. This includes travel categories like
flight tickets, bus tickets and hotel booking.
Introduced new features in the iPhone version of mobile app.
iPhone customers can now book a Recurring Deposit (RD), Add
a new biller and set Auto Pay amongst various new services
introduced.
Turnaround times for lending to commercial customers
significantly improved by digitizing the process by introducing a
tablet based lead management system for use by sales people in
the field.
Corporate customers got an upgraded FX trading portal.
Digitization for wealth management customers was also
strengthened with the launch of a portal providing a single view
of all their investments.
Investment in Airtel M Commerce Services Ltd.
Airtel M Commerce Services Ltd. Company (AMSL), 100%
subsidiary of Bharti Airtel Ltd. (BAL), had been granted inprinciple
approval for setting up a Payments Bank by the Reserve Bank of
India (RBI) in August 2015. Basic but critical services such as small
savings account, remittances etc. will bring a large number of low
income households and small businesses under formal banking
network. Your Bank in February 2016 has signed a Share Subscription
and Shareholders Agreement with AMSL and BAL for acquisition of
19.90% equity stake in AMSL. Subsequently, your Bank has invested
in AMSL. AMSL has received final license from RBI in April 2016.
EMPLOYEE STOCK OPTION STOCK APPRECIATION
RIGHTS SCHEMES

The shareholders of the Bank at its Annual General Meeting held on


29th June 2015 approved a new Scheme under the Securities and
Exchange Board of India (Share Based Employee Benefits)
Regulations, 2014, for the purposes of granting options and stock
appreciation rights to the employees of the Bank, its subsidiaries and
its associate companies, as applicable, viz. Kotak Mahindra Share
Based Employee Benefit Scheme 2015 comprising of:
o Kotak Mahindra Equity Option Scheme 2015 and Kotak
Mahindra Stock Appreciation Rights Scheme 2015
Further, pursuant to the Scheme of Amalgamation of ING
Vysya Bank (IVBL) with the Bank, the ESOP Schemes of
the erstwhile IVBL have been renamed and adopted by the
Bank, as given below:
Kotak Mahindra Bank Ltd. (IVBL) Employees Stock Option
Scheme 2005
Kotak Mahindra Bank Ltd. (IVBL) Employees Stock Option
Scheme 2007
o Kotak Mahindra Bank Ltd. (IVBL) Employee Stock
Option Scheme 2010
Kotak Mahindra Bank Ltd. (IVBL) Employees Stock Option
Scheme 2013
The stock options granted to the employees currently operate
under the following Schemes:
Kotak Mahindra Equity Option Scheme 2007
Kotak Mahindra Equity Option Scheme 2015
Kotak Mahindra Bank Ltd. (IVBL) Employees Stock Option
Scheme 2007
Kotak Mahindra Bank Ltd. (IVBL) Employee Stock Option
Scheme 2010
Kotak Mahindra Bank Ltd. (IVBL) Employees Stock Option
Scheme 2013
The disclosure requirements under the Securities and Exchange
Board of India (Share Based Employee Benefits) Regulations,

2014, for the aforesaid ESOP & SARs Schemes, in respect


of the year ended 31st March 2016, are disclosed on the Banks
website
CORPORATE GOVERNANCE AND BUSINESS
RESPONSIBILITY REPORT
Pursuant to Regulation 27 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (SEBI LODR
Regulations), a separate section entitled Report on
CorporateGovernance has been included in this Annual Report. The
Report of Corporate Governance also

CORPORATE SOCIAL RESPONSIBILITY (CSR)


Your Bank has constituted a Board Corporate Social Responsibility
Committee (CSR Committee) and consists of the following Directors:
Mr. C Jayaram, NonExecutive NonIndependent Director
& Chairman of the CSR Committee
Mr. Dipak Gupta, Joint Managing Director
Prof S. Mahendra Dev, Independent Director
Your Banks CSR Committee drives the CSR programme of the
Bank. Your Bank has a Board approved CSR policy, charting
out its CSR approach. This policy articulates the Banks aim to
positively contribute towards economic, environmental and
social wellbeing of communities through its Corporate Social
Responsibility agenda. The Banks CSR agenda is driven by its
key focus areas:

o Promoting education primary focus area


o Enhancing vocational skills and livelihood
o Promoting preventive healthcare and sanitation
o Reducing inequalities faced by socially and economically
backward groups
o Sustainable development
o Relief and rehabilitation
o Clean India
o Sports

The Banks CSR policy is available on the Banks website viz. URL :
http://www.kotak.com/corporateresponsibility.html Pursuant to the
provisions of Section 135,schedule VII of the Companies Act 2013
(the Act), read with the Companies (Corporate Social
Responsibility) Rules, 2014 the report of the expenditure on CSR by
the Company is as under:
The average net profit U/S 198 of the Bank standalone for the last
three financial years preceding 31st March, 2016 is Rs. 2,366.37
crore. The prescribed CSR expenditure required U/S 135, of the Act
for FY 201516 is Rs. 4,733 lac. The CSR expenditure incurred for
the period 1st April 2015 to 31st March 2016 under Section 135 of
Companies Act, 2013 amounts to Rs. 1,641 lac as against Rs. 1,197
lac CSR spend in the financial year 201415. CSR expenditure of Rs.
1,641 lac in FY 201516 as a percentage of average net profit U/S
198 of the Bank standalone at Rs. 2,366.37 crore is 0.69%. Your Bank
is building its CSR capabilities on a sustainable basis and is

committed to gradually increase its CSR spend in the coming years.


The CSR Committee of the Board confirms that the implementation
and monitoring of CSR Policy, is in compliance with CSR objectives
and Policy of the company. The details of CSR activities and spends
under Section 135 of the Companies Act, 2013 for FY 201516, are
annexed to this Report.

RISK MANAGEMENT POLICY


Your Bank has in place a comprehensive Enterprise wide Risk
Management (ERM) framework supported by detailed policies and
processes for management oCredit Risk, Market Risk, Liquidity Risk,
Operational Risk and various other Risks. Details of identification,
assessment, mitigations, monitoring and the management of these
Risks are mentioned in the Management Discussion and Analysis
section appended to this Report. contains certain disclosures required
under the Companies Act, 2013. A Business Responsibility Report
containing the requisite details under Regulation 34 of the SEBI
LODR Regulations is disclosed on the Banks website viz. URL:
http://ir.kotak.com/annualreports
DEPOSITS

Being a banking company, the disclosures required as per Rule 8(5)


(v) & (vi) of the Companies (Accounts) Rules, 2014, read with
Section 73 and 74 of the Companies Act, 2013 are notapplicable to
your Bank.
AUDITORS
In terms of Section 139 of the Companies Act, 2013, Messrs S.R.
Batliboi & Co. LLP, Chartered Accountants, were appointed as
statutory auditors of your Bank for a period of four years from
the conclusion of the Thirtieth Annual General Meeting until the
conclusion of the Thirty fourth Annual General Meeting of the Bank,
subject to the annual approval of RBI and ratification by the members
every year. Accordingly, requisite resolution forms part of the Notice
convening the Annual General Meeting.