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KOTAK MAHINDRA BANK

GROUP NO. 1 F-2 Priti Bidasaria Jiten Mehta Jinal Sampat Kirtan Atara Pratik More Dhara Shah Deepika Shetty Neha Wadhwani B-66 B-92 B-106 C-123 C-151 C-163 C-169 C-177

Structure of Banking Sector

Overview Of Kotak
It was started in the year 2003 It is the first NBFC in India to convert itself in to a bank as Kotak Mahindra Bank Ltd It is the 4th largest bank according to Market Cap of 40,635.67 cr It has CAGR of 15.1 % CASA deposit of 27 % It has P/E of 36.40 with industry P/E of 10.33

Macro Environment Analysis


GDP Inflation Interest Rate RBI Regulations Union Budget Uncertain global economy & financials Rupee Depreciation Taxation Policies Basel III norms

Supplier Power
-Real Estate -Systems(ERPs) ATM Machines(NCR , Diebold) Credit Card (Visa, Master Card)

Buyer Power
-No. of Nationalized Bank is 26 -No. of Foreign Bank is 36 -No. of Regional Rural Banks is 82

Competitive market
-SBI HDFC Bank -ICICI Bank -AXIS Bank -INDUS IND Bank -YES Bank

Threat of New Substitutes


-NBFCs -Liquid Funds -Micro Finance -Chit Funds -Co-operative Banks

Threat of New Entrants


-Corporate like RIL & TATA -International Banks (FRB) -Basel 3 Norms -High Capital -Rural Networks

P
E S T

Regulation of the Government Budget Measures Foreign Direct Investment RBI Norms
Change in Lifestyle Population Literacy Rate ATM Facilities IT services Credit Card
Agriculture : 18.5% Industry : 26.3% Services : 55.2%

E
L

Banking Regulation Act Intervention by RBI

Overview Of Kotak
Net Profit
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

1,832 1,567 1,307

> 525 Branches

FY 10

FY 11

FY 12

Total Net Profit In Cr's

Total Income
14,000 12,000 10,000 8,000 6,000 10,053 11,063 13,014

4,000
2,000 0 FY 10 FY 11 FY 12 Total Income in Cr's

Market Share As per Sales


1% 1% 3% 1% 1% 3% 3% 2% 26%

Market Share
ICICI Bank HDFC Bank Axis Bank Yes Bank Kotak Mahindra Federal Bank IndusInd Bank JK Bank ING Vysya Bank South Ind Bk Karur Vysya Karnataka Bank

4% 4% 4%

5% 5%
17% 21%

PRODUCTS AND SERVICES


BANKING AND SAVINGS LOAN AND BORROWINGS

Savings Account Deposits Debit Cards Convenience Banking Corporate Finance NRI Banking Salary2Wealth NRI Banking INVESTMENTS AND INSURANCE
Life Insurance Mutual Funds Wealth Management Portfolio Management Gold Investing in IPO

Personal Loans Car Loans Home Loans Commercial Loans

INSTITUTIONAL
Investment Banking Treasury Private Equity

Contribution to sectors
Wholesale Banking
CE/CV Agri Capital Market 5 15 32 7 13 31 Others Car

Retail Banking
Mortgage Pl Others

100%
80%

3 10

3 8

3 7

18 34

37

39

40

60% 40% 20% 0% 48 48 49 50 50 50

FY 10

FY 11

FY 12 FY 10 FY 11 FY 12

SWOT
Strength Stable management Diversified business model Market leader in car and commercial vehicle finance Weakness Weak liability finance Weak presence in corporate banking Heavily reliant on the interbank market

Opportunities KMB has the opportunity to strengthen its liabilty franchise by increasing its CASA deposits Tap new customers due to the de regulations of the saving rate by RBI

New Trends in the Market


Re-assess their business fundamentals Increasing risk transparency Focusing on staff efficiency From a product-centric approach to a clientcentric approach Balancing cost reduction with process improvements

Comparison With NPA


Kotak Bank SBI Bank

HDFC Bank
2 1 0

ICICI Bank
Net NPA

Net NPA FY 10 FY 11 FY 12

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