A

PROJECT REPORT
ON

“Enterprise Analysis & Desk Research: Kotak Mahindra Bank”

In Partial Fulfillment of the Subject

EADR (115)

Submitted By
Sharma Amit (C- 47)

Guided By
Mr. Vijay Sonaje

Submitted To

Marathwada Mitra Mandal’s

Institute of Management Education and Research Training (IMERT)
(2018-19)

1
 DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “EnterpriseAnalysis &
Desk Research: Kotak Mahindra Bank ” inpartial fulfillment of the subject EADR (115)
under the guidance of Prof. Vijay Sonaje is my original work and the conclusion drawn there
in are based on the material collected by myself.

Place:
Date: Sharma Amit
C: 47

2
EXECUTIVE SUMMARY

AS we know that the banking industry in financial sector. There are lots of opportunity and
awareness to enhance the economy. There are many nationalized and private bank are
overcome with competition that who will the best service provider bank in present era there
cannot be any economic or financial activities without an institution like bank. As a
researcher I got many experiences i feel very better at KOTAK Mahindra Bank. But some
drawbacks were there.

The product charges were higher as compare to national bank it gives challenge to convince
the customer. In this bank customers are limited because are limited because of high charge
for opening the a/c no. doubt bank has quick service have a net banking , mobile banking.
ATM advantage rather it is more expensive for the middle class customer actually .

As a researcher I got the main objective for the bank.

- To provide the KOTAK MAHINDRA BANK information regarding various

competitors.
- To help the researcher in knowing out the various kinds of services provided by
different banks.
- To study the various functioning’s of banks.
- To study the different products of banks.
- To provide the researcher tough field knowledge.
- To judge the customer satisfaction regarding their banks.
As the banking system plays a crucial role in the development of the economy it was felt that
reforms were necessary to improve the efficiency of the system and to offer better services at
a reasonable price to customers.

The banking org also provide the quality service for their new product the customer has come
to occupy center stage and he is the beneficiary of the increasing competition.

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Sr.No. Contents Page
No.
1 Introduction 7
Reason behind choosing the company 8
2 Industry Profile 9
2.1 Industry size 10
2.2 Growth Trends 11
2.3 Major Players& TheirMarket Share 12
2.4 Government Support and Policies 13
3 Company Profile 15
3.1 History of the Company 16
3.2 Management Team 18

3.3 Milestones 18
3.4 Awards 18
4 Review of Literature 21
Ratios Formulae A. Per Share Ratio 22
B. Per Branch Ratio 22
C. Key Performance Ratio 23
D. Valuation Ratio 25
5 Objectives 26
6 Research Methodology A. Types of Research 29
B. Data Collection 29
C. Scope of Research 30
D. Limitation of Research 30

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7 Data Analysis & Interpretation 31
7.1 Product Profile & Brands of the company 32
7.2 Geographical Spread 39
7.3 Advertisement and Branding Strategies 40

7.4 Financial Trends, Ratios 41

A. Balance Sheet of the Company 42
B. Profit And loss Account of theCompany 43
C. Ratio of the Company 45
8 Observations & Findings 54
9 Suggestions 56
10 Conclusion 58
Bibliography 60

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 List of Graphs/ Charts

Graphs No. Title Page No.

Graphs a. Diluted Eps 40

Graphs b. Book Value per share 40

Graphs c. Business per Branch 41

Graphs d. Net Profit Margin 41

Graphs e. Operating Profit margin 42

Graphs f. Return on Assets 42

Graphs g. Return on Equity 43

Graphs h. Net Interest margin 43

Graphs i. Cost to Income 44

Graphs j. Interest Income to Total Assets 44

Graphs k. Non-Interest Income to total Assets 45

Graphs l. Operating Profit to Total Assets 45

Graphs m. Operating Expenses to total assets 45

Graphs n. Interest Expenses to total assets 46

Graphs o. Price to Book Value 46

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 Chapter 1
Introduction

7
 The are following reason behind choosing this company are as follows:

 KOTAK MAHINDRA is one of the leading financial companies of India giving a

complete solution to every investment planning, that's why we say "THINK
INVESTMENT,THINK KOTAK
 Kotak Mahindra has international partnerships with Goldman Sachs (one of the
world's largest investment banks and brokerage firms) and Old Mutual (a large
insurance, banking and asset management conglomerate).
 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 corporate
 The group has a net worth of around Rs.1,700 cores and employs over 4,000
employees in its various businesses. With a presence in 74 cities in India and
offices in New York, London, Dubai and Mauritius, it services a customer base of
over 5, 00,000.
 CORPORATE IDENTITY

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 Chapter 2
INDUSTRY PROFILE

9
Industry profile
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments
Innovation Index (FPII).

2.1 Industry Size

The Indian banking system consists of 27 public sector banks, 21 private sector banks, 49
foreign banks, 56 regional rural banks, 1,562 urban cooperative banks and 94,384 rural
cooperative banks, in addition to cooperative credit institutions.^^ In FY07-18, total lending
increased at a CAGR of 10.94 per cent and total deposits increased at a CAGR of 11.66 per
cent. India’s retail credit market is the fourth largest in the emerging countries. It increased to
US$ 281 billion on December 2017 from US$ 181 billion on December 2014.

Developments of banking sector

Key Developments in India’s banking industry include:

 As of September 2018, the Government of India launched India Post Payments Bank
(IPPB) and has opened branches across 650 districts to achieve the objective of
financial inclusion.
 The total value of mergers and acquisition during 17 in NBFC diversified financial
services and banking was US$ 2,564 billion, US$ 103 million and US$ 79 million
respectively.
 The biggest merger deal of FY17 was in the microfinance segment of IndusInd Bank
Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion.
 In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to
Rs 96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion (US$ 1.03 billion).

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2.2 Growth of the banking sector
1. Credit off-take has been surging ahead over the past decade, aided by strong
economic growth, rising disposable incomes, increasing consumerism & easier access
to credit
2. As of Q3 FY18, total credit extended surged to US$ 1,288.1 billion.
3. Credit to non-food industries increased by 9.53 per cent reaching US$ 1,120.42
billion in January 2018 from US$ 1,022.98 billion during the previous financial year.
4. Demand has grown for both corporate & retail loans; particularly the services, real
estate, consumer durables & agriculture allied sectors have led the growth in credit.
5. The digital payments revolution will trigger massive changes in the way credit is
disbursed in India.

Banking Industry Outlook 2018

In this outlook we explore the challenges most banks face in balancing the need to
restructure their foundations for the long-term with finding near-term growth.

We do so by identifying six macro themes that should be critical for long-term

growth:

1. Customer centricity

2. Regulatory recalibration

3. Technology management

4. Mitigating cyber risk

5. Fintechs and big techs

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6. Reimagining the workforce.

Then we drill down into five business segments to address how these long game
themes may begin to play out in the next 12-to-18 months

2.3 Major Player

Player Share Price of bse
HDFC Bank 1,661.30
SBI India 260.85
ICICI Bank 314.90
Axis Bank 562.20
Kotak Mahindra Bank (KMB) 1,198.50
IndusInd Bank Ltd 1,576.50
Bank of Baroda 102.15
Yes Bank 217.70
Punjab National Bank 66.10
Canara Bank 220.80

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2.4 Government support and policies

The domestic banking sector is struggling for the last few quarters, but it will see a revival
thanks to the many new policies from the government and the Reserve Bank of India (RBI),
Dun and Bradstreet said, in a statement. So much so that D&B's CEO and Director
Bob Carrigan said that the banking sector will be key driving force of the Indian economy
because of the transformation taking place in many areas.

He said, the 20% CAGR growth in bank credit and the four-fold increase in the per capital
bank credit over the last decade is a clear indicator of the country's economic progress," he
added.

"While the regulators and the government have played a major role in this incredible growth,
this has also been possible because of the untiring efforts of Indian banks," he added.

The government and the Reserve Bank of India (RBI) have made a lot of changes to the
banking sector, allowing new players, all-new models, and bank structure enter the market.
This includes payments banks, small finance banks, making licences available on tap, and so
on.

Dun & Bradstreet recently unveiled its 'India's Top Banks 2016' report which said that credit
growth of the featured scheduled commercial banks moderated to 8.6% in FY16 from nearly
9.7% in FY15. This was the lowest in two decades. Banks have been practising caution in
lending for the past year, as the Kingfisher case intensified in the country and bad loans
mounted. Gross Non-Performing Assets (NPA) ratio went up sharply from 4.3% in FY15 to
7.5% in FY16, the highest in 13 years but this was "largely reflecting reclassification of
restructured standard advances as NPAs," the D&P report said.

RBI's initiatives to clean up the banks and review its asset quality has also made banks
cautious in lending. Demand for credit has also been muted in the period. Bank deposits
also decelerated from nearly 10.5% in FY15 to 7.5% in FY16, the lowest in five decades and
the net profits of the banks declined by 61% in FY16.

13
For the report, D&B analysed the performance of 74 Scheduled Commercial Banks (SCBs),
which included 27 public sector banks, 21 private sector banks, and 26 foreign banks.

Kaushal Sampat, President and Managing Director, Dun & Bradstreet, said, The NPA
quagmire, burden of high provisioning and slowdown in credit demand have undoubtedly
taken a toll on banks' performance over the last two years.

"However, concerted policy measures by the government and the RBI will see the beginnings
of a structural recovery in the banking system," he said.

The government cleared the Bankruptcy Code and the Debt Recovery Bill in its last
Parliamentary Session, while the RBI announced measures to deepen the corporate bonds
market, let banks issue its own Masala Bonds, and also announced various measures to
develop the fixed income and currency markets.

"Business confidence has received a strong boost driven by the focus of the government on
policy certainty, predictability and continuity," Sampat said. Clearance of the crucial bills
reflects "the government's firm intent on improving the ease of doing business in India and
creating an enabling environment for expeditious resolution of bankruptcies while
simultaneously reducing the problem of stressed assets in the banking system," he added.

Government Initiatives

 As of September 2018, the Government of India has made the Pradhan Mantri Jan
Dhan Yojana (PMJDY) scheme an open ended scheme and has also added more
incentives.
 As part of government’s capital infusion plan of Rs 65,000 crore (US$ 9.70 billion) in
21 public sector banks during FY19, Rs 11,336 crore (US$ 1.69 billion) will be
infused in Punjab National Bank, Andhra Bank, Allahabad Bank, Corporation Bank
and Indian Overseas Bank.

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 Chapter 3

COMPANY PROFILE

15
KOTAK MAHINDRA BANK
In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company,
received banking license from the Reserve Bank of India (RBI), becoming the first non-
banking finance company in India to convert into a bank - Kotak Mahindra Bank Ltd.

Effective April 1, 2015, ING Vysya Bank Ltd. merged with Kotak Mahindra Bank Ltd.

The Bank has four Strategic Business Units – Consumer Banking, Corporate Banking,
Commercial Banking and Treasury, which cater to retail and corporate customers across
urban and rural India.

For more information, please visit the company’s website at http://www.kotakmhindra.com

3.1 History Of the company

 1986: Kotak Mahindra Finance Limited starts the activity of Bill Discounting.
 1987:Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.
 1990:The Auto Finance division is started.
 1991:The Investment Banking Division is started.Takes over FICOM, one of India
largest financial retail marketing networks.
 1992: Enters the Funds Syndication sector
 1995:Brokerage and Distribution businesses incorporated into a separate company
Kotak Securities. Investment Banking division incorporated into a separate
company - Kotak Mahindra Capital Company
 1996:The Auto Finance Business is hived off into a separate company- Kotak
Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford
Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of
Matrix Information Services Limited marks the Group’s entry into information
distribution.
 1998:Enters the mutual fund market with the launch of Kotak Mahindra Asset
Management Company.
 2000:Kotak Mahindra ties up with Old Mutualplc. for the Life Insurance business.
Kotak Securities launches kotakstreet.com - its on-line broking site. Formal
commencement of private equity activity through setting up of Kotak Mahindra

Venture Capital Fund.

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 2003:Kotak Mahindra Finance Ltd. Converts to bank
 2004:Launches India Growth Fund, a private equity fund.
 2005:1. KOTAK Group realigns joint venture in Ford Credit; Buys KOTAK
Mahindra
Prime (formerly known as KOTAK Mahindra Prime Limited) and sells Ford
credit KOTAK Mahindra.
2. Launches a real estate fund.
 2006:Kotak Mahindra to buy out Goldman Sachs' stake in kmcc and kotak securities
ltd
 2008:opening of the banks represeantitave office in dubi
 2009: Launch of pension fund under India's National Pension System (NPS)
 2014: 1. Kotak Mahindra Bank launches Jifi - a first of its kind fully integrated social
bankaccount
2. Kotak Mahindra Bank Launches KayPay - World First Bank
Agnostic Instant Funds Transfer Platform Using Facebook
 2015:1.Kotak Mahindra Bank Ltd has informed BSE that Reserve Bank of India has
approved the scheme of amalgamation of ING Vysya Bank Limited with
Kotak Mahindra Bank Limited
2.Kotak Mahindra General Insurance receives IRDA Approval to commence
Insurance business.

 2016:Acquisition of 10,00,000 equity shares of institutional investor Advisory

ServicesIndia Ltd.
Acquisition of 9,83,82,022 (19.90%) equity shares of Airtel M Commerce
Services Ltd. Co.(AMSL).

 2017:Kotak mhindra bank acquires bss microfinance private ltd

Kotak Mahindra Bank launches Kotak Remit Aadhaar-based Instant Forex
Remittance Solution. –

Kotak Mahindra Bank launches Kotak 811 Savings Account

 2018 : Buyout of 26% old mutual plc uk (om) stake in kotak mhindra old
Mutual life insurance ltd
Launch of kotak infrastructure debt fund limited

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3.2Management team
● Mr. UDAY KOTAK Managing director & CEO
● Deepak gupta joint managing director
● Prakash Apte Director
● Amit Desai Director
● Mark Edwin Newman, Director
● Prof. S. Mahendra Dev, Director
● Uday Khanna, Director
● C. Jayaram, Director
● Dr. Shankar Acharya, Chairman
● Farida Khambata, Director
● Mr. Jaimin Bhatt, President & Group Chief Financial Officer
● Ms. Bina Chandarana, Company Secretary

3.3 Milestone
From launching Kotak Mahindra Finance Ltd. in 1985 to becoming one of the country’s most
trusted financial institutions today, it’s been quite a journey.
Here are some of the biggest milestones we've crossed along the way.

3.4 Awards
 Uday Kotak recognised with 'Lifetime Achievement Award' at Financial Express'
Best Banks' Awards 2015-16
 Uday Kotak recognised as Business Leader at the Lakshmipat Singhania IIM
Lucknow National Leadership Awards 2017
 Uday Kotak recognised as 'Banker of the Year' by Businessworld Magna Awards
2018
 Shanti Ekambaram recognised as one of the most powerful women (presented by
Fortune India) for the second time in a row from Aveek Sarkar, Vice Chairman and
Editor Emeritus, ABP Group
 Shanti Ekambaram recognised as one of the most powerful women in Business by
Business Today

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 Karthi Marshan, Sr. EVP & Head – Group Marketing, recognised as Marketer of the
Year 2017 at DMAsia 2017

 CFO100 Roll of Honour 2018:

 Devang C Gheewalla, Sr. Executive Vice President, Kotak Mahindra Bank received
the award under the "Cost Control & Management"category
 Himanshu Vasa, Sr. Executive Vice President & Financial Comptroller, Kotak
Mahindra Bank received the award under the "Management Controls"category
 Bharat Thakkar, Executive Vice President, Kotak Mahindra Prime received the award
under the "Internal Audit & Control" category
 Gobind Jain, Exeuctive Vice President, Kotak Mahindra Bank received the award
under the "Risk Management"category
 11th ICAI Awards 2017
 Nilesh Shah, MD & CEO, Kotak Mahindra Asset Management Company recognised
as CA Business Leader - Mutual Fund (Individual) at 11th ICAI Awards 2017
 Nimesh Kampani, Sr. VP & Head – Investor Relations, Kotak Mahindra Bank
recognised as CA Professional Achiever - Banking & Insurance Sector (Individual) at
11th ICAI Awards 2017
 Best Mid-Sized Bank at Business Today Best Banks Awards 2018
 Best Mid-Size Bank at Businessworld Magna Awards 2018
 Investment Bank of the Year – M&A
 Asiamoney Best Bank Awards 2018 (India):
 Best Domestic Bank, India
 Best Corporate & Investment Bank, India
 Best High Yield Syndicate Loan
 Best Bank – Domestic, India at The Asset Triple A Country Awards 2017
 Best Bank in India at Asiamoney's Cash Management Customer Satisfaction Awards
2017
 The Asset Triple A Treasury, Trade, Supply Chain and Risk Management Awards
2018:
 Best in Treasury and Working Capital-NBFIs
 Best in Treasury and Working Capital-Public Sector
 Best Liquidity Management Solution for Tata Realty & Infrastructure Limited

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  Best Digital Bank (Online Transaction) Award at D&B Banking Awards 2017

 Best Growing Mid-Size Bank Award at Businessworld's Magna Best Banks Awards
2017
 Best Cash Management Bank in India at the Asian Banker Transaction Banking
Awards 2017
 Three awards won at Infosys Finacle Client Innovation Awards 2017 for 'Digital
Account Opening' process in the Channels Innovation category, 'Cash Management
System Platform' in the Process Innovation category and 'DIGI Service Requests
Automation' in the Process Innovation category
 Kotak Mahindra Bank's in-house legal team made it to The Legal 500 GC Powerlist:
India Teams
 6% savings rate recognised as the Best Savings Bank Product of the Year at Financial
Express' Best Banks' Awards 2016-17
 Kotak 811 and biometric account opening recognised with an award at IBA's Banking
Technology Awards 2018
 811 recognised with the Bronze Award in the Mobile App category at the 2017
SMARTIESTM APAC Awards
 811 recognised as the Best Corporate Innovation Award at India Fintech Forum 2017
 811 named as winner at the 6th Edition of Banking Frontiers' Finnoviti Awards 2018
 Kotak Mahindra Bank's Annual Report for FY 2016-17 emerged as winner in
Category II – Private Sector Banks by the Institution of Chartered Accountants of
Indian (ICAI) at ICAI Awards for Excellence in Financial Reporting 2016-17
 NetApp Innovation Award 2018 in the Enterprise Mobility Category
 Best Implementation of Change Communication Award (Silver Medal) for the Tol
Mol Hai Goal campaign at DMAsia 2017
 Best Storage Implementation Award in the Enterprise segment at the BW CIO World
Digital Leadership & CIO Awards 2017
 Award For Innovation in BMC IT Service Management Tools Implementation
category by UBS Transformance (UT): Datacenter summit & Awards 2017

………………………………………And many more in last earlier years.

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 Chapter 4
Review of Literature

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Key factors to look for :
A. Per share ratios:
1. Diluted Eps :Earnings per share (EPS) and diluted EPS are profitability
measures used in the fundamental analysis of companies. EPS only takes into
account a company's common shares, whereas diluted EPS take into account
all convertible securities. EPS is the portion of the company profit allocated to
each outstanding share of common stock. Earning per share serve as an
indicator of the company profitability.
Calculated as :
Eps = Net Income – Dividends on preferred Stock
Average out standing shares
2. Book Value :Book value per share is just one of the methods for
comparison in valuing of a company. Enterprise value, or firm value, market
value, market capitalization, and other methods may be used in different
circumstances or compared to one another for contrast.

The book value per share formula is used to calculate the per share value of a
company based on its equity available to common shareholders. The term
"book value" is a company's assets minus its liabilities and is sometimes
referred to as stockholder's equity, owner's equity, shareholder's equity, or
simply equity.
Common stockholder's equity, or owner's equity, can be found on the
balance sheet for the company. In the absense of preferred shares, the
total stockholder's equity is used.
Book value per share = total common stockholder’s equity
number of common shares
B. Per brances ratios:
1. Business/Branches:The higher the ratio, the more is the business per
branch and hence greater efficiency per branch. It is suggested that business at
a branch level is to be considered for evaluation of performance, as the branch
is the operating unit, instead of conducting the study at bank level.

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C. Key Performance Ratios:
1. Net Profit Margin:Net Profit Margin (also known as “Profit Margin” or
“Net Profit Margin Ratio”) is a ratio used to calculate the percentage of
profit a company produces from its total revenue. It measures the amount of
net profit a company obtains per dollar of revenue gained. The profit margin
is equal to net profit (also known as net income) divided by total revenue,
expressed as a percentage.
NPM = Net profit / Revenue

2. Operating Profit Margin:Operating Profit Margin is a profitability, or

performance, ratio used to calculate the percentage of profit a company
produces from its operations, prior to subtracting taxes and interest charges.
It is calculated by dividing the operating profit by total revenue, and
expressed as a percentage. The margin is also known as EBIT (Earnings
Before Interest and Tax) Margin.
OPM = Operating Profit/ Total Revenue
Op = Sales – Operating Expenenses - Deprecation
3. Return on Assets:The return on assets ratio, often called the return on
total assets, is a profitability ratio that measures the net income produced by
total assets during a period by comparing net income to the average total
assets. In other words, the return on assets ratio or ROA measures how
efficiently a company can manage its assets to produce profits during a
period.
ROA = Net Income / Average Total Assets
4. Return on Equity / Networth:Return on equity (ROE) is the amount
of net income returned as a percentage of shareholders' equity. Return
on equity (also known as "return on net worth" [RONW]) measures a corporation's
profitability by revealing how much profit a company generates with the money
shareholders have invested.
ROE is expressed as a percentage and calculated as:
Return on Equity=Net Income/Shareholder's Equity

23
5. Net Interest Margin:Net interest margin is a ratio that measures how
successful a firm is at investing its funds in comparison to its expenses on
the same investments. A negative value denotes that the firm has not made
an optimal investment decision because interest expenses exceed the amount
of returns generated by investments.
Net interest margin is calculated as:

6. Cost to Income:in finance, the cost-to-income ratio (also called the

cost/income ratio or C/I ratio) is the measure of the costs of running a
company in relation to its operating income. Cost- to- income ratio is an
important for determining the profitability of the bank. The ratio give the
clear view of how efficiently the bank is being run- the lower the ratio, the
more profitable bank. Change in the ratio also highlight potential problem –
if the ratio rises from one period to next period, it means the costs are rasing
at the higher rate than income. Thus there is an inverse relationship between
the cost to income ratio and the bankers profitability.
Cost to income = operating income/operating expenses
7. Interest Income/Total Assets;Normally the higher this ratio the better
indicating the bank is earning a high interest rate or the proportion of
interest earning assets (loans) to total assets is high or both of these effects.
Too high of interest income to total assets ratio would be attributed to the
high interest income (rate) derived from high risk loans. Also, if the high
interest income is being generated by too high a proportion of assets in loans
that could stem from lack of liquidity. If the interest income to total assets
ratio is too low that usually is from earning low interest income (rate) and/or
too little lending.
Ratio of interest income to total assets = Interest earned / Total assets

24
 8. Non-Interest Income/Total Assets; This is the primary way in which
the company generates sales. Financial institutions and banks, on the other
hand, make money from the sale of money. These firms view non-interest
income as a strategic line-item on the income statement. Low interest rates
make it difficult for banks to make a profit, so they must rely on non-interest
income to make a profit.
Non-interest income can be anything from asset sales to fees for penalties
related to overdrafts or withdrawals. Some banks rely heavily on fees from
automated teller machines, while other banks rely on general transaction
fees. Non-interest income is particularly important in business banking
relationships. Banks generally charge businesses and companies more for
non-interest transactions.
Ratio of non-interest income to total assets = Other income / Total assets
9. Operating Profit/Total Assets; Ratio of operating profits to total assets =
Operating profit / Total assets

D. Valuation Ratios
1. Price To Book Value; Companies use the price-to-book ratio to
compare a firm's market to book value by dividing price per share by book
value per share. Some people know it as the price-equity ratio.
The PBV ratio is the market price per share divided by the book value per
share. The market price per share is simply the stock price. The book
value per share is a firm's assets minus its liabilities, divided by the total
number of shares.
PBV ratio = market price per share / book value per share

A lower P/B ratio could mean the stock is undervalued. However, it could also
mean something is fundamentally wrong with the company. As with most
ratios, this varies by industry.

25
Chapter 5
Objectives

26
OBJECTIVES OF PROJECT :

 To know banking profile and functioning.

 To find out whether marketing strategies used by banks really helps in

increasing sales by customers.

 To find out customer awareness regarding banking products.

 To find out advertisement effectiveness.

 To find out branding effectiveness

 To understand product range and services offered by bank

 To know promotional and marketing strategies of banking sector .

 To Understand the Ratios importance in financial analysis .

 To understand the different type of ratios .

 To know the why customer service is more important in banking sector

 To understand the changing need of customer and product offering by

bank as per their need .

 To understand the banking financial figures to match the trend analysis.

 To understand comparative analysis of financial statement .

 To figure out 360 degree holistic marketing approach used in banking

sector .

27
 Chapter 6
Research methodology

28
A. Type of Research: -Descriptive research

Descriptive research is also called Statistical Research. The main goal of this type of research
is to describe the data and characteristics about what is being studied. The idea behind this
type of research is to study frequencies, averages, ratio and other statistical calculations.
Although this research is highly accurate, it does not gather the causes behind a situation.

The regular interaction with the Customers and the Line Managers revealed about the various
strategies involved in performing business activities and gathering data using various
techniques and software applications

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables; he can
only report what has happened or what is happening.

B. Data Collection
There are two types of data:

PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose of facilitating the
study is known as primary data. So in this research the Primary data is not collected.

SECONDARY DATA

For the company information I am using secondary data like brochures, web site of the
company,Annual report of the company, etc.

The Method used by me is Survey Method as the research done is Descriptive Research.

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C. Scope of Research
Following are the key effective area of research of scope in Kotak Mahindra Bank such as
 To define the core mechanism of Kotak bank
 To Know the daily working process and to channelize this in our knowledge system
 To define the limitation of work
 To understand the daily transaction limit
 To know over seas transfer process
 To understand the variability in the operational process
 To assue the need of customer safety and security protocol to banking .

D. Limitation of Research
The main limitation of this research are as
 Not subject to primary research such as Individual data collection
 Based on earlier research ( Empirical Research )
 Time constraint.
 The area conducted for research study was very limited.

 The information provided by the bank on website was very limited as bank executives

refused to disclose marketing strategies directly.

30
 Chapter -7
Data Analysis & Interpretation

31
7.1 Product Profiles &Brands of the company

THE COMPLETE BANK

A license authorizing the bank to carry on banking business has been obtained from the
Reserve Bank of India in terms of Section 22 if the Banking Regulation Act, 1949. It must be
distinctly understood, however, that in issuing the license, the RBI does not undertake any
responsibility for the financial soundness of the bank or the correctness of any of the
statements made or opinion expressed in this connection.

 Retail Liabilities and Branch Banking: KOTAK Mahindra Bank addresses

the entire spectrum of financial needs for Individuals and Corporate. From savings
account and current account, to Demat. Services, Investment advisory Services, Trade
Finance Services, and Forex and Remittances, the bank offers it all What
differentiates and the Bank's regular Banking Products are our value-added benefits
like free access at any VISA ATM, Free cash delivery at home, 2-way sweep into
Mutual Fund & Term Deposit, Utility Bill payment Facility etc. The bank introduced
online shopping during the current year. As on September 30, 2005, KOTAK
Mahindra Bank had 44 full fledged bank branches across 25 locations in India.
 Wealth Management: As a Bank, our objective is to help individual manage and
better their Net Worth. Hence, within KOTAK Mahindra
 Bank; there is a team of dedicated professionals catering to the financial
requirements of High Net-Worth Individuals.
 NRI Services: KOTAK Mahindra Bank offers a diverse set of NRI-centric
financial solutions including, investments, remittances, and deposits. KOTAK stands
with a difference like at-par Cheque, at home services(utility bill payment and
document delivery in India), free Inward funds, and mandate facility etc. including
NRE/NRO/FCNR accounts.
 Commercial Vehicles: This constitutes the largest part of the Bank's retail
advances portfolio servicing a customer base of more than 50,000 customers. The
division is moving towards becoming one stop shop for all financing needs of
transporters.

32
  Personal loans: KOTAK quick easy loans are called "Jaldi loans" which range
from Rs. 50000 to Rs. 1000000 for salaried individuals, self-employed professional
and businessmen. Jaldi Loans offers minimal paperwork and quick processing within
24 working hours for salaried and 72 working hours for self employed professionals
and business) with repayment tenures ranging from 12 to 48 months.
 Home Loans: The Bank now has a complete suite of home finance products which
includes home loans, loan against property, balance transfer loans and loans for
commercial property
 Agriculture Finance Division: The agriculture finance division was launched in
August 2003, to meet the priority sector advance target of the Bank. The products
launched for cropping activities & to high tech and scientific agricultural projects,
working capital loans to dealers and distributors of agricultural inputs and loans to
farmers engaged in providing inputs under contract farming arrangements to large
corporate & direct loans to Corporate engaged in agriculture activities.
 Corporate Banking: KOTAK Mahindra Bank offers Corporate and
institutions a complete range of client-centric banking solutions and services. These
include working capital, trade services, transaction banking, money market and
foreign exchange services and cash management
 Treasury:The current liberal policy in conducting the Forex business opened up a
gateway to new opportunities to both individuals and corporate clients

The Product Profile-An Overview

No matter what ones banking needs are, KOTAK Mahindra Bank has an offer that is just
right for him\her. KOTAK current accounts offer the customers attractive returns with
personalized banking services. It has a variety of products to offer, KOTAK Edge current
Account, KOTAK Pro Savings Account and KOTAK Ace current Account. Each product is
feature packed ranging from Free Home Banking, Free Access to 6000+ ATM, Free DDs,
and Free At -Par Cheque Facility to Free Trading Account & Free Demat Account. They can
choose the one that suits them the most and meet their requirements.

33
 PRODUCTS

There are three product feature of current account in Kotak Mahindra bank

1. KOTAK Edge Current Account

2. KOTAK Pro Current Account
3. KOTAK Ace Current Account

Features of current account

Feature ace Pro edge

Account Average quarterly 250k 50k 25k
balance
Investment account Free Free Free
Additional saving 3 nova SA 1novaSA Nil
account
Remittances 2-way sweep 500k 100k 50k

DDs/Bc for branch Free Free Free unlimited

location unlimited unlimited
Non branch location 300k 50k Charged

Collection Cheque collection for free free 2.5/1000

branch location

Cheque collection for 1/1000 2.5/1000 2.5/1000

non branch location

Services Home banking free free charged

At home service Free Free charged

Cards Debit card Free 1st year Free 1st year Free 1st
Year
Visa domestic Free Free Charged
Visa international Free Charged charged
Cheque book Cheque Free Free 2. per leaf
Book
At-par Cheque book Free Free 4 per leaf
Facilities Demat account Free Free Free
opening

34
KEY BENEFITS
-Attractive Returns
-Business Advantages
-Pro Privileges
-Convenience Banking
You need a well equipped bank account to keep pace with you in the ever changing business
scenario. We offer you the KOTAK Pro Current Account, armed with KOTAK 2-Way
Sweep, as well as an entire gamut of Banking Privileges and ‘user-friendly’ Convenience
Banking facilities. The feature rich KOTAK Pro Current Account is the ideal way to make
your money work harder.
1. ATTRACTIVE RETURNS
Your KOTAK Ace Current Account combines liquidity of a Current Account with the
attractive returns of a Term Deposit through the unique KOTAK 2-Way Sweep
benefit.

2. BUSINESS ADVANTAGES
Your Ace account comes to you with a host of advantages that are aimed at meeting
your business requirements whilst providing you a superior Banking experience.
a. Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any location in India, up to a per-
specified limit, just by calling our Phone Banking Service.
b. Free Cheque Collection
Outstation Cheque, drawn on any of our branch locations, would be collected ‘free of
charge’ for you. Only a nominal charge is levied for non-branch locations.
c. Free Home Banking
For ‘free’ cash/demand draft delivery, dial our Phone Banking Service and enjoy a
time saving banking experience from the comfort of your home or office. You can
also use this facility for free cash/Cheque pick-up

35
d. Free At-par Cheque
KOTAK Mahindra Bank's At-par Cheque are treated as ‘local clearing’ Cheque
across select locations in the country. The At-par Cheque facility comes to you ‘free’
of charge. You can now save DD making charges while enjoying the convenience of a
Cheque.
e. Free Electronic Fund Transfer
Transfer funds to third party accounts in other banks, without drawing a Demand
Draft or a Cheque, by using our Electronic Fund Transfer facility. With this facility
you can save on Demand Draft making/couriering charges and also transfer funds
faster.
f. Overdraft against Term Deposit
As a KOTAK Ace Current Account holder, you can avail an overdraft against your
Term Deposit(s) held with KOTAK Mahindra Bank. This facility helps you to
effectively manage short-term cash flow problems and since your Term Deposit(s)
remains intact, you continue to earn interest on your investment.

3. ACE PRIVILEGES
Your Ace account has been designed with exclusive benefits that give an extra fillip
to your banking experience.
a. Free Demat Account
As an Ace Current customer, you can also open a Demat Account with us ‘free’ of
charge. What’s more, even your annual charges towards the Demat Account are
waived off.
b. Family Savings Accounts
Your Ace account allows you to now extend the KOTAK banking experience to
three of your family members. The Family Savings Accounts come to you with a
host of benefits like KOTAK 2-Way Sweep, At-par Cheque facility and other
attractive features. So now even your dear ones can enjoy banking the 'KOTAK
way'!

36
c. Free Cheque Pick-up
You can now avail the added benefit of a ‘free’ Cheque pick-up service. This
service enables you to have Cheque and documents picked up from your door step
on a daily basis, helping you to devote more time and energy to your business.
d. Free Investment Account
Avail a ‘free’ Investment Account that provides you a consolidated view of all
your investments. The Investment Account statement gives a 'single window view'
of your Mutual Fund portfolio, listing the NAV of each scheme invested into,
current consolidated value of your portfolio, and realized/unrealized returns
against each investment made.
e. Personal Investment Advisor
To identify and analyze your specific investment requirements we provide you a
dedicated Personal Investment Advisor. This person alerts you to investment
opportunities, sends you regular updates and feedback on the performance of your
investments, helping you monitor, manage and grow your wealth in the ever fluid
investment climate.
f. Family Savings Account
The KOTAK Pro Current package entitles you to a ‘free’ Family Savings
Account. This account comes to you with a host of benefits like KOTAK 2-Way
Sweep, At-par Cheque facility and other beneficial account features. So now even
your dear ones can enjoy banking the ‘KOTAK way’
g. Free At-Home Services
This service enables you to make your Utility Bill payments like electricity,
telephone and mobile phone bills and also get document delivery and pick-up
from the bank. This facility, brought to you by Les Concierge, is available at
select cities, and comes to you absolutely ‘free’.

37
4. CONVENIENCE BANKING
A host of Convenience Banking facilities allow you to access your account anytime,
anywhere.
a. Global Debit Card
Access your account free of cost at any VISA ATM in India or abroad using your
Global Debit Card. You can use your Debit Card at all VISA affiliated merchant
establishments worldwide. And furthermore you can gift free add-on cards to your
family members too!
b. Phone Banking
Dial our 24 hour Toll Free number 1800 116022 (North India) OR 1800 226022
(Rest of India) from anywhere and our customer Care Officer will help you
instantly with your banking requirements.
c. Net Banking
Just log on to www.kotak.com to access our Net Banking facility. Take advantage
of the Internet to bank from home, office or anywhere in the world at a time of
your convenience. Furthermore, usage of our Net Banking facility entitles you to
free Insurance Cover as per conditions specified.
d. At-Home Services
This service enables you to make you Utility Bill payments like electricity,
telephone and mobile phone bills and also documents pick-up/delivery to the
bank, ‘free of cost’. This facility brought to you by Les Concierges, is available at
select cities.
e. Mobile Banking & Alerts
Use this service to access your bank account anywhere, anytime! It is quick and
easy, available to you 24X7 and it’s absolutely free! You don’t have to pay any
charge to avail this service. You can use Mobile Banking to check account
balance, last 3 transaction details, issued Cheque status and request a Cheque
book. You can use Alerts Service to get Alerts by SMS and / or email whenever a
debit or credit above any amount specified by you happens to your account, your
balance falls below the Average Quarterly Balance or a Standing Instruction set
by you fails or you can even ask for your account balance to be sent to you on a
daily or a weekly basis.

38
7.2 Geographical Spread :Kotak Mahindra Bank Ltd is one of the fastest growing banks
and among the most admired financial institutions in India. The Bank offers transaction banking,
operates lending verticals, manages IPOs and provides working capital loans. They have one of the
largest and most respected Wealth Management teams in India, providing the widest range of
solutions to high net worth individuals, entrepreneurs, business families and employed
professionals. As on 31 December 2017, Kotak Mahindra Bank had 1,375 branches spread across
700 locations and 2,171 ATMs.The Bank offers complete financial solutions for infinite needs of
all individual & non-individual customers depending on the customers need - delivered through a
state of the art technology platform.

39
7.3 Advertisement & Branding Stratigies By Kotak Mahindra Bank

The Following are the major advertisement and branding strategies adopted by the

Kotak Mahindra Bank In last few years to promote and to Channelise the brand value

in Indian and as well as In Overseas market such as

 Print Media ( Daily , Monthly Magazine )

 Digital Lead Campiagn for Account Opening such as Banner Ad on more traffic

leading website , such as indepent PPC campaign on Google Adword & on linkedin

media and Direct Emailer .

 Outdoor Media ( Hoarding , Leaflet by interns )

 Broadcasting ( TV Ads )

 Events ( Sponsorship )

 And many more other ways such as CSR which is Corporate Social Responsibilty for

a cause to promote an enitity as a bank and brand value among the country for a trust

value between the A/c holder and the bank .

40
7.4 Financial Trends &ratio

That’s where trend (time-series) and industry (cross-sectional) analysis come in. You can
compare your firm’s ratios to trend data, which is data from other time periods related to your
firm with a current data, so as to see how your firm is doing over a series of time periods.
You can analyse its performance over a number of years that whether your company is
progressing or its constant or its going worse…
In a similar way you can also compare your firm’s ratios to industry data. You
can gather data from similar firms in the same industry, calculate their financial ratios, and
see how your firm is doing as compared to the industry at large. Ideally, to get a good
picture of the financial picture of your firm, you should do both.

Compare two Compare one

firms firm yearly

STANDARDS OF COMPARISION:
The ratio analysis involves comparison for a useful interpretation of the financial statements.

A single ratio is itself does not capable of indicating favourable or unfavourable condition. It

should be compared with some standards. It consists of:

 PAST RATIOS: Ratios calculated from the past historical financial statements of

the same firm. FOR EXAMPLE: Current ratio in 1991 compared with of 2009.

 COMPETITORS RATIOS:Ratios of some selected firms, especially most

progressive and successful competitors of the firm, at the same point of time. FOR

EXAMPLE: Solvency ratio of Punjab national bank compared with state bank of India.

41
 INDUSTRY RATIOS: Ratios of industry to which the firm actuallybelongs.

This is also a basis which can be used for interpretation of a firm to know its progress in an

industry.

 PROJECTED RATIOS: Ratios developed using the projected or proforma

financial statements of the same firm. Ratios can also be calculated for future standards based

upon the projected or proforma financial statements. These future ratios may be taken as a

standard for comparison and the ratios calculated on actual financial statements can be

compared with thestandard ratios to find out variances, if any. Such variances help in

interpreting and taking corrective action for improvement in future.

A. Balance sheeet of kotak bank

Particulars 2015-16 2016-17 2017-18
CAPITAL AND LIABILITIES
Capital 917.19 920.45 952.82
Employee's Stock Options (Grants) Outstanding 3.41 1.87 2.17
Reserves and Surplus 23041.87 26695.62 36528.83
Deposits 138643.02 157425.86 192643.27
Borrowings 20975.34 21095.48 25154.15
Other Liabilities and Provisions 8678.96 8450.68 9652.15
TOTAL 192259.79 214589.96 264933.40

ASSETS
Cash and Balances with Reserve Bank of India 6903.43 7492.43 8908.51
Balances with Banks and Money at Call and Short
Notice 3976.28 15079.58 10711.60
Investments 51260.22 45074.19 64562.35
Advances 118665.30 136082.13 169717.92
Fixed Assets 1551.59 1537.63 1527.16
Other Assets 9902.97 9324.00 9505.86
TOTAL 192259.79 214589.96 264933.40

42
 B. Profit & loss account

Particular 2015-16 2016-17 2017-18

I. INCOME
Interest earned 16384.18 17698.93 19748.50
Other Income 2612.23 3477.16 4052.21
TOTAL 18996.42 21176.09 23800.70
II. EXPENDITURE 0.00 0.00 0.00
Interest Expended 9483.81 9572.78 10216.81
Operating Expenses 5471.52 5618.50 6425.72
Provisions and Contingencies 1951.31 2573.31 3073.87
TOTAL 16906.64 17764.59 19716.40
III. PROFIT 0.00 0.00 0.00
Net Profit for the year (I - II) 2089.78 3411.50 4084.30
Add: Balance in Profit and Loss Account
brought forward from previous year 5095.26 8214.12 10756.29
Add: Additions on Amalgamation 1800.09 0.00 0.00
Less: Adjustments on Amalgamation 125.38 0.00 0.00
TOTAL 8859.75 11625.62 14840.59
IV. APPROPRIATIONS 0.00 0.00 0.00
Transfer to Statutory Reserve 522.45 852.88 1021.08
Transfer to Capital Reserve 9.17 10.55 24.00
Transfer to Special Reserve u/s 36(1)(viii) of
Income Tax Act, 1961 45.00 55.00 55.00
Transfer from Investment Reserve Account (Refer
Note 33 - Schedule 18 A) 41.52 48.49 0.00
Dividend 91.84 0.07 114.21
Corporate Dividend Tax 18.70 0.68 21.70
Balance carried over to Balance Sheet 8214.12 10756.29 13604.60
TOTAL 8859.75 11625.62 14840.59
V. EARNINGS PER SHARE (Face value of `
5/-)
Basic (`) 11.42 18.57 21.54
Diluted (`) 11.4 18.55 21.51

43
Provisions and Contingencies:
Breakup of “Provisions and Contingencies” (including write-offs; net of write-backs) shown
under the head Expenditure in Profit and Loss Account:
(` in crore)
Particulars 31st March31st March, 2018 3117, 201 2018 2017
Provisions for Depreciation on Investments 196.91 139.24
Loss on valuation of securities on
transfer between categories -
Provision towards NPA624.81 614.41
Provision towards Unhedged Foreign Currency Exposure (0.30) (9.46)
Provision towards Standard Assets 112.65 85.95
Provision for Taxes 2,133.92 1,736.57
Other Provision and Contingencies 5.88 6.60
Total Provisions and Contingencies 3,073.872,573.31

Interpreation:
 The most of the expeneses incurred on the provisions and contengencies in
comparision to last year 2017 record with the difference of 500.56 in crores.

Transfer from Investment Reserve Account

Draw Down from Reserves:
In accordance with the RBI requirement on creation and utilisation of Investment reserve in
respect of HFT and AFS investments, no
amounts has been utilised during the year (previous year ` 48.49 crore utilised).

44
 C. Ratio of the company

Mar-18 Mar-17 Mar-16

Per Share Ratios
Diluted Eps (Rs.) 21.51 18.55 11.4

Book Value [Incl. Reval

196.7 150.02 130.63
Reserve]/Share (Rs.)

Per Branch Ratios

Business/ Branches (Rs.) 2,61,06,71,439.48 2,14,39,59,011.69 1,93,02,94,955.74

Key Performance Ratios

Net Profit Margin (%) 20.68 19.27 12.75
Operating Profit Margin (%) 0.16 -0.37 -3.18
Return on Assets (%) 1.54 1.58 1.08
Return on Equity / Networth(%)
10.89 12.35 8.72
Net Interest Margin (X) 3.59 3.78 3.58
Cost to Income (%) 39.91 38.68 39.07
Interest Income/Total Assets (%) 7.45 8.24 8.52
Non-Interest Income/Total Assets (%) 1.52 1.62 1.35
Operating Profit/Total Assets (%) 0.01 -0.03 -0.27
Operating Expenses/Total Assets (%) 2.42 2.61 2.84
Interest Expenses/Total Assets (%) 3.85 4.46 4.93

Valuation Ratios
Price To Book Value (X) 5.33 5.81 5.21

45
1. Per share ratio

a. EPS

Diluted Eps (Rs.)

25 21.51
20 18.55

15 11.4
10

0
Jan-16 Jan-17 Jan-18

Interpretation :

 Earning per share serve as an indicator of companies profitability

 The number of share in year 2016 was less as compared to 2017-18 that’s

why EPS is increased in that year.

 It also indicate that increased in net profit of the company

b. Book Value

Book Value [Incl. Reval Reserve]/Share (Rs.)

250
196.7
200
150.02
150 130.63

100
50
0
Jan-16 Jan-17 Jan-18

46
2. Per branch ratio

c. Business per Branch

Business/ Branches (Rs.)

3,000,000,000.00
2,610,671,439.48
2,500,000,000.00
2,143,959,011.69
1,930,294,955.74
2,000,000,000.00

1,500,000,000.00

1,000,000,000.00

500,000,000.00

0.00
Jan-16 Jan-17 Jan-18

3. Key performance ratio

d. Net Profit Margine

Net Profit Margin (%)

Jan-18 20.68

Jan-17 19.27

Jan-16 12.75

0 5 10 15 20 25

Interpretation :

 The ratio indicate how much of each money is earned by

the company is translated into profits.
 As here increasing in net profit margin which indicate that
company policy is effective in converting revenue into
actual profit.

47
 e. Operating profit Margin

Operating Profit Margin (%)

1
0.16
0
Jan-16 Jan-17 Jan-18
-1 -0.37

-2

-3
-3.18
-4

f. Return on assets

Return on Assets (%)

1.8
1.58 1.54
1.6
1.4
1.2 1.08
1
0.8
0.6
0.4
0.2
0
Jan-16 Jan-17 Jan-18

Interpreation :
 the return on assets ratio or ROA measures how efficiently a
company can manage its assets to produce profits during a period.
 In year 2017 company produce more profit through assets as
comparision of 2016, 18.

48
 g. Return on Equity

Return on Equity / Networth (%)

15 12.35
10.89
8.72
10

0
Jan-16 Jan-17 Jan-18

Interpretation :
 This ratio indicate the firm ability to generating profit per
rupee of equity shareholders fund.
 The net income and the share holder fund is increased
year on year.
 In year 2018 of the ROE of the firm have been decreased
which indicate that the funds of the share holder has not
been use properly by company.

h. Net Interest Margin

Net Interest Margin (X)

3.78
3.8
3.75
3.7
3.65 3.59
3.58
3.6
3.55
3.5
3.45
Jan-16 Jan-17 Jan-18

49
Interpreation :
 Net interest margin is a ratio that measures how successful a firm
is at investing its funds in comparison to its expenses on the
same investments.
 In year 2018 is investment of fund decrease as comparasion of
2017.

i. Cost to Income

Cost to Income (%)

40.2
40
39.8
39.6
39.4
39.2
39 39.91
38.8
38.6 39.07
38.4 38.68
38.2
38
Jan-16 Jan-17 Jan-18

Interpretation:

 Cost- to- income ratio is an important for determining the profitability of

the bank.

 The ratio give the clear view in year 2018 the bank is being run- the

efficiently lower the ratio, the more profitable bank.

50
 j. Interest Income to total assets

Interest Income/Total Assets (%)

9
8.5
8
8.52 8.24
7.5
7.45
7
6.5
Jan-16 Jan-17 Jan-18

k. Non Interest income to Total Assets

Non-Interest Income/Total Assets (%)

1.7 1.62

1.6 1.52

1.5
1.35
1.4
1.3
Non-Interest Income/Total Assets (%)
1.2
Jan-16 Jan-17 Jan-18

l. Operating Profit to Total assets

Operating Profit/Total Assets (%)

0.05
0.01
0
Jan-16 Jan-17 Jan-18
-0.05 -0.03
-0.1

-0.15

-0.2

-0.25

-0.3 -0.27

51
 m. Operating Expenses to Total Assets

Operating Expenses/Total Assets (%)

2.9
2.8
2.7
2.6
2.5 2.84

2.4 2.61
2.3 2.42
2.2
Jan-16 Jan-17 Jan-18

n. Interest Expenses to Total Assets

Interest Expenses/Total Assets (%)

6
5
4
3
4.93 4.46
2 3.85
1
0
Jan-16 Jan-17 Jan-18

52
4. Valuation ratio

o. Price to Book value

Price To Book Value (X)

5.9 5.81
5.8
5.7
5.6
5.5
5.4 5.33
5.3 5.21
5.2
5.1
5
4.9
Jan-16 Jan-17 Jan-18

Interpretation :

 Companies use the price-to-book ratio to compare a firm's market to

book value by dividing price per share by book value per share.

 As per decreasing the price to book value which indicate that company

the value of company is increased in year 2017.

53
 CHAPTER –8

OBSERVATIONS &

FINDINGS

54
Observations & Findings

 It is observed that people consider brand image as an important element

while opening an account in any bank.

 The brand image of Kotak bank is much more developed than other banks.

 Advertisement has created awareness among people regarding banking

services. It has also helped build brand image of the banks.

 Kotak bank is considered technologically more advanced than any other

banks.
 After doing the analysis, i find out that the net profit margin of a bank is

low in year 2018 as compared to last year which shows that bank is not

performing well to recover its debts. The net profit margin ratio is not

following any trend.

 Interest paid ratio has also shown an increasing trend in the last five

years.

55
Chapter -9
Suggestions

56
Suggestions

Here come the gems in hand. Whatever we do; we must do to learn and
implement. The following important things should be kept in mind for the
future.

1. Bank should more concentrate on its advertisement, since for making a

big brand name and sell your product people must remember the name
of KOTAK as a Bank.
2. Bank should provide some short term loan facilities to Customers if they
want to attain more customers as giving them helping hand will help us.
3. In future who so ever is added in the team for the banking relation with
the TASC, the bank must train him/her fully with the law controlling
non government organizations.
4. KOTAK must increase its number of branches in the state.
5. KOTAK must form a committee who should be responsible to cross
check the working of its customers.

57
Chapter-10
Conclusion

58
Conclusions :-

During the Study , I found following points which I would like to conclude as a key points
for KOTAK MAHINDRA BANK LTD. Some important interpretations are here.

1. The first preference is opening a current / saving account in govt bank because mostly
consumers don’t want to believe and waste their time in private bank.
2. The factor which is paying the leading role, facilities and services .mostly consumers
are govt. employees so they are more conscious towards facilities and services.
3. When people go to opening a current account, the brand name of kotak is not on their
minds.
4. People remember the advertisements of ICICI and
5. HDFC more than the ‘KOTAK’ because of advertisement of ICICI and HDFC. In
market ICICI and HDFC have big hoarding and showrooms, which attract the
consumer and leave image on consumer’s mind.
6. KOTAK advertisements are not coming frequently on both media electronic and print
media in comparison to other brands. So people easily forget this brand because
consumer’s memories are very short.
Financially Aspects

 The return on assets ratio is just 1.65% the company should try to improve it.

 The solvency ratio is just 87.3% it means that the company can pay only 87% of

liabilities from its assets. The company should try to improve as this strongly affects

the goodwill of the concern.

 The owner’s funds as a percentage of total resources is 17.15% thus this ratio should

be increased. Moreand more owner’s funds should be employed.

 The adjusted cash margin ratio is also to be improved.

 The current liabilities to proprietor’s funds is 31.9 it should be decreased.

 The capital gearing ratio states that the company is highly geared. A company is

relying more on the outsider resources.

59
Bibliography:

Material Type In –Text Reference List

Company KOTAK MAHINDRA www.kotakmahindrabank.com
Report &profile BANK

Company Stock & share

Performance Balance Sheet April 2018
Industry Industry Outlook Banking Industry overview 2018
Overview

Fact Sheet 
MMoneycontrol.com
Moneycontrol

Newspaper: (TheHindu & economics Kotak Mahindra Bank progess in Q2

print time)
Course reader : Kotler Philip, Armstrong Business Research Method’ McGraw-
Gary Hill/Irwin 11th edition – 2014 – pg no.105,
299, 210
CourseReader By: Dr. Michael V. P Research Methodology In Management’
Himalaya publishing house 2012 – pg no.
32, 54-60, 120
All or part of a Source :
Available from:
table, figure or Banking In India
data used in KPMG INDIA OVERVIEW Banking Industry Overview India
text: from the
web

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