A PROJECT REPORT ON MARKET STUDY AND CUSTOMER MAPPING FOR BANKING PRODUCTS

PREPARED BY
Hemali Suratia Bharti Thakkar Manthan Sarvaiya Truptesh Shah Umesh Makhlepara Sumit Patel Kaushik Gondaliya Yogesh Sindha
NIS Academy, MBA, 2010 Page 1

Nilesh Khetiya (NIS Academy)

SUBMITTED TO
Pramod Sir (Branch Manager) V.V.NAGAR

INDEX

Sir no. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Particulars Preface Acknowledgement Executive summary Company profile Introduction of banking sector in India Current scenario About Kotak Mahindra bank History SWOT Analysis of Kotak bank NRI’S NRI Help center Analysis

Page no.

NIS Academy, MBA, 2010 Page 1

PREFACE
NIS Academy, MBA, 2010 Page 1

So we want to check weather KOTAK MAHINDRA BANK is successful or not. Banking is one of the main pillars of service sector. After successful completion of NIS Academy. This report also gives me the overall satisfaction level of customer from the KOTAK MAHINDRA BANK & how the customers are loyal to the bank. Indian economy is growing at a considerable rate. The aim of KOTAK MAHINDRA BANK is customization & people cantered banking. In India the significance of MBA course is increasing drastically. As a part of this study I have decided to prepare a project report on “MARKET STUDY & CUSTOMER MAPPING FOR BANKING PRODUCTS” PROVIDED BY KOTAK MAHINDRA BANK. 2010 Page 1 . MBA. The major sector contributing to the growth of GDP is service sector and it is approximately 63% to GDP. Finally. The growth of GDP in India is 8% per annum. So I have decided to take exposure of banking sector by taking practical training at KOTAK MAHINDRA BANK which is one of the reputed private banks. This study will also be helpful to us in analyzing the information about what change customer want from the existing services. To serve this highly competitive scenario practical studies are much more important with theoretical studies. As a partial fulfillment of third semester the students have to take a summer training of 6 to 7 weeks at any company and prepare a project report on the basis of that practical experience. This report also includes graphical representation wherever it feels necessary.The industrial scenario of economy is highly competitive and constantly changing. The study of this topic is helpful to me in analyzing customer satisfaction & loyalty to the services which they are using at the KOTAK MAHINDRA BANK. it is indeed excellent opportunity for us to present this report and a matter of esteem honors itself. Amongst all the PG courses MBA is most favored. Customized banking system can be achieved by provided what customer actually wants.

training it is golden experience for me of banking sector. NIS Academy. MBA. And I also know how the different departments are working. 2010 Page 1 .

2010 Page 1 . I would like to thank our Centre Head Mr. MBA. Manish Amin of NIS ACADEMY for his guidance and kind support as well as our project guide Mrs. Finally I am glad to thank our all faculties who have provided me substantial guidance & support in preparation of this project. This successful completion of this project could not have been possible without their cooperation and support. I would also like give some share of thanks to my friends for their support. Pramod Chauhan for giving me permission to take the summer training.ACKNOWLEDGEMENT First of all I am thankful to KOTAK MAHINDRA BANK and Branch Manager Mr. Nisha Kurup for their valuable guidance and experience. NIS Academy. I would also like to thank the staff members of the bank for providing us information about the different departments of the bank.

This project report is based on the NRI Banking Services provided by the Kotak Mahindra bank. 2010 Page 1 . I have selected the banking sector because in India banking is one of the most growing sectors NIS Academy. As Kotak Mahindra bank is a service firm we have selected the above mentioned criteria’s. process and physical evidence.e. background information. It will usually contain a brief statement of the problem or proposal covered in the major document(s). An executive summary differs from an abstract in that an abstract will usually be shorter and is intended to provide a neutral overview or orientation rather than being a condensed version of the full document. Three major criteria’s are undertaken for finding the customer opinion i. concise analysis and main conclusions. MBA.EXECUTIVE SUMMARY Executive summary is a term used in business for a short document that summarizes a longer report. It is intended as an aid to decision making by business managers. people. Abstracts are extensively used in academic research where the concept of the executive summary would be meaningless. As there was a limitation of time and the project is too broad we have prepared the project report in group of two.

and the physical evidence facilities. NIS Academy.and there are many future opportunities are there. We have also included all the information regarding the 7 Ps of the Kotak Mahindra bank which will include all the information of Kotak Mahindra bank related products. promotional schemes. Without replacement and nonrandom sampling method is being used. Our target population was customers coming at bank and the corporate salary accounts. pricing. The exploratory research design is undertaken and the data is being collected by field work and telephone. A well designed questionnaire was formed of 7 questions for collecting the data. We have selected the V V Nagar branch of the Kotak Mahindra bank as our territory of research. Our project is mainly based on the research but for some aspects secondary data is also being included from the websites and the books. people. various processes. 2010 Page 1 . MBA. As it is research project we have undergone one survey of around 1200 respondents within ANAND district to find the customer opinion of NRI services provided by the Kotak Mahindra bank. All these data is being collected from the secondary sources. The banking sector of India is one of the least affected by the slowdown all over the world because it strong framework and regulation.

the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).COMPANY PROFILE The Kotak Mahindra group is a financial organization established in 1985 in India. It was previously known as the Kotak Mahindra Finance Limited. Gherda as Chairman and Uday Kotak as Executive Vice Chairman & Managing Director. Kotak Mahindra Finance Ltd. The Bank has its registered office at Nariman Bhavan.M. The bank is headed by K. In February 2003. NIS Academy. Kotak Mahindra Finance Ltd. MBA. Mumbai. is the first company in the Indian banking history to convert to a bank. Nariman Point. 2010 Page 1 . Shankar Acharya is the chairman of board of Directors in the company. a non-banking financial company.

M. Shankar Acharya Mr. Anand Mahindra Mr. MBA. Pradeep Kotak Dr. K. Uday Kotak Director Mr. Ajay Sondhi Chairman Executive Vice Chairman & Managing NIS Academy. Gherda Mr. Cyril Shroff Mr.Mr. Shivaji Dam Mr. 2010 Page 1 .

1949 can be broadly classified into two major categories.Mr. commercial banks can be further grouped into nationalized banks. regional rural banks and private sector banks (the old/ new domestic and foreign). Dipak Gupta Executive Director Ms.ORGANISATION CHART……. C. Scheduled banks comprise commercial banks and the co-operative banks.000 branches spread across the country. non-scheduled banks and scheduled banks. which is governed by the Banking Regulation Act of India. MBA. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as “priority sectors”. 2010 Page 1 . In terms of ownership. These banks have over 67. Jayaram Executive Director Mr. INTRODUCTION OF BANKING SECTOR IN INDIA The Indian Banking industry. the State Bank of India and its group banks. The NIS Academy. This in turn resulted in a significant growth in the geographical coverage of banks. Bina Chandarana Secretary & Senior Vice President ……. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking.

The 20 nationalized banks accounted for 53. 3. MBA.14 percent And 12. regional rural banks and other scheduled commercial banks accounted for 5. Banking in India has its origin as early as the vedic period. It is believed that the transistion from money lending to banking must have occurred even before Manu.2 percent respectively in deposits and 8. 3. During the days of the East India Company. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. The share of foreign banks (numbering 42). Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold. The General Bank of NIS Academy. 2010 Page 1 . who has devoted a section of his work to deposits and advances and laid down rules relating to rates of interest.41 percent. During the year 2000. it was the turn of the agency houses to carry on the banking business. the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. which in turn helps them to save on manpower costs and provide better services.9 percent and 12. During the Mogul period.2 percent of the deposits and 47.7 percent.1 percent share in credit. These banks due to their late start have access to state-of-the-art technology. Eight new private sector banks are presently in operation.5 percent of credit during the same period. the State Bank of India (SBI) and its 7 associates accounted for a 25 percent share in deposits and 28. the indegenous bankers played a very important role in lending money and financing foreign trade and commerce.manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. the great Hindu Jurist. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980.85 percent respectively in credit during the year 2000. After the second phase of financial sector reforms and liberalization of the sector in the early nineties.

The Bank of Hindustan is reported to have continued till 1906 while the other two failed in the meantime. 14 major banks of the country were nationalised and in 15th April 1980 six more commercial private sector banks were also taken over by the government. the Central Bank of India Ltd.Public Sector Banks. These three banks were amalgamated in 1920 and a new bank. 2010 Page 1 .India was the first Joint Stock Bank to be established in the year 1786. the Bank of Bombay in 1840 and the Bank of Madras in 1843. the Bank of Bengal in 1809. Canara Bank Ltd. In the first half of the 19th century the East India Company established three banks. were independent units and functioned well. These three banks also known as Presidency Banks. Indian Bank Ltd. In the wake of the Swadeshi Movement. Today the commercial banking system in India may be distinguished into following sectors: . Punjab National Bank Ltd. a number of banks with Indian management were established in the country namely. the Imperial Bank of India was established on 27th January 1921. With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial Bank of India was taken over by the newly constituted State Bank of India. State Bank of India and its associate banks called the State Bank group 20 nationalised banks Regional Rural Banks mainly sponsored by Public Sector Banks NIS Academy. the Bank of Baroda Ltd.. MBA. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934. On July 19. The others which followed were the Bank of Hindustan and the Bengal Bank. 1969. Bank of India Ltd.

MBA....Private Sector Bank..Co-operative Banks.      Old generation private banks New generation private banks Foreign banks in India Scheduled Co-operative Banks Non-scheduled Banks .. The cooperatiev banking sector in India is divided into 4 components         State Co-operative Banks Central Co-operative Banks Primary Agriculture Credit Societies Land Development Banks Urban Co-operative Banks Primary Agricultural Development Banks Primary Land Development Banks State Land Development Banks . 2010 Page 1 .Development Banks. Industrial Finance Corporation of India (IFCI) Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Industrial Investment Bank of India (IIBI)  Small Industries Development Bank of India (SIDBI)     NIS Academy.. The co-operative banking sector has been developed in the country to the suppliment the village money lender..

2010 Page 1 . are in the process of shedding their flab in terms of excessive manpower. which are the mainstay of the Indian Banking system. On the one hand. excessive nonPerforming Assets (Npas) and excessive governmental equity.    SCICI Ltd. while on the NIS Academy. the PSBs. MBA. National Bank for Agriculture and Rural Development (NABARD) Export Import Bank of India National Housing Bank CURRENT SCENARIO The industry is currently in a transition phase.

which currently account for more than 78 percent of total banking industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in 2000). while the PSBs are still grappling with disgruntled employees in the aftermath of successful VRS schemes. The FDI rules being more rationalized in Q1FY02 may also pave the way for foreign banks taking the M&A route to acquire willing Indian partners. Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena. Also. The PSBs are of course currently working out challenging strategies even as 20 percent of their massive employee strength has dwindled in the wake of the successful Voluntary Retirement Schemes (VRS) schemes. 2010 Page 1 . foreign banks. Private sector Banks have pioneered internet banking. Banks with their phenomenal reach and a regular interface with the retail investor are the best placed to enter into the insurance sector. phone banking. Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on the retail segment. including both new and the existing ones. anywhere banking. following India’s commitment to the W To agreement in respect of the services sector. debit cards. Banks in India have been allowed to NIS Academy. MBA. Talks of government diluting their equity from 51 percent to 33 percent in November 2000 have also opened up a new opportunity for the takeover of even the PSBs.other hand the private sector banks are consolidating themselves through mergers and acquisitions. falling revenues from traditional sources. PSBs. Many of them are also entering the new vistas of Insurance. lack of modern technology and a massive workforce while the new private sector banks are forging ahead and rewriting the traditional banking business model by way of their sheer innovation and service. have been permitted to open up to 12 branches a year with effect from 1998-99 as against the earlier stipulation of 8 branches. and mobile banking.

NIS Academy.provide fee-based insurance services without risk participation invest in an insurance company for providing infrastructure and services support and set up of a separate joint-venture insurance company with risk participation. MBA. 2010 Page 1 .

• One of the largest pools of scientists. location. Demand for several consumer products is growing at over 12% per annum. investment. • Long history of market economy infrastructure • Sophisticated financial sector. constitute the market for branded consumer goods . • Foreign investment is welcome. • Strategic location .access to the vast domestic and South Asian market. production. technicians and managers in the world.estimated to be growing at 8% per annum. spanning almost all areas of manufacturing activities.000 listed companies and market capitalisation of US$ 154 billion (March. • A large and rapidly growing consumer market up to 300 million people. import and export. 2010 Page 1 . choice of technology. • A sophisticated legal and accounting system. • Policy environment that provides freedom of entry. • One of the largest manufacturing sectors in the world. approval is required but is automatic in sixty categories of Industries. • Vibrant capital market with over 9. MBA.THERE ARE SEVERAL GOOD REASONS FOR INVESTING IN INDIA • One of the largest economies in the world. • Rich base of mineral and agricultural resources. • Skilled man-power and professional managers are available at competitive cost. NIS Academy. • Well balanced package of fiscal incentives.1996) • Well-developed R&D infrastructure and technical and marketing services. engineers.

can be one which is lower between the rates prevailing in any one of the two countries. • Complete exemption from Customs Duty on industrial inputs and Corporate Tax Holiday for five years for 100 per cent Export Oriented units and units in Export Processing Zones. • Corporate Tax applicable to the foreign companies of a country with which agreement for avoidance of Double Taxation exists. • Free and full repatriation of capital. No income tax on profits derived from export of goods. technical fee. • Rupee is convertible on Current Account at market determined rate. NIS Academy. royalty and dividends. • Foreign brand names are freely used.• English is widely spoken and understood. MBA. 2010 Page 1 .

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms).000. it services a customer base of over 5. to investment banking. Dubai and Mauritius. Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance.00.…KOTAK MAHINDRA BANK… Kotak Mahindra is one of India's leading financial institutions. to mutual funds. MBA. to stock broking. banking and asset management conglomerate). to life insurance. offering complete financial solutions that encompass every sphere of life.1. London. NIS Academy. the group caters to the financial needs of individuals and corporates.000 employees in its various businesses. With a presence in 59 cities in India and offices in New York. The group has a net worth of over Rs. 2010 Page 1 .550 crore and employs over 3. From commercial banking.

6. Pinto and Kotak & Company. A. Their products spans from commercial banking. The Kotak group has a net worth of more than Rs.…………….799 crore with the branches. This company was promoted by Uday Kotak. franchisees. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986. with a range of financial services that caters to all customers' day to day requirements. MBA. to investment banking – diverse needs of individuals and corporates are catered to. and that's when the company changed its name to Kotak Mahindra Finance Limited Kotak Mahindra is among the leading financial organization of India. to mutual funds. representative offices and satellite offices spread across cities and towns NIS Academy. to life insurance. to stock broking. 2010 Page 1 .. Sidney A.HISTORY…………… The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited.

Market Share Of Key Players In The Indian Aviation Sector 1986 Kotak Mahindra Finance Limited started off with Bill Discounting Kotak Mahindra Finance Limited makes its foray into the Lease and Hire Purchase market The Auto Finance division starts The Investment Banking Division starts off. MBA.. London. 2010 Page 1 . San Francisco. Dubai.in India. one of India's largest financial retail marketing networks 1987 1990 1991 NIS Academy. They take over FICOM. The Kotak Mahindra Group got incepted in 1985 in the form of Kotak Capital Management Finance Limited. A.HIGHLIGHTS OF KOTAK MAHINDRA BANK.. The Kotak Group offers their services to approximately 6. They also have global offices in New York. . A stake in the group was taken in by industrialists Harish Mahindra and Anand Mahindra and this is the time when the company changed its name to Kotak Mahindra Finance Limited. Sidney A. Pinto and Kotak & Company. being promoted by Uday Kotak.4 million customers. Mauritius and Singapore.

kotaksecurities. Kotak Securities launches the site (now www. For their Life Insurance business. They launch Matrix Information Services Limited.1992 Penetrates into the Funds Syndication sector The brokerage and distribution businesses of the Group gets incorporated into a separate company . Kotak Mahindra Finance Ltd. whereas the investment banking arm is incorporated into a separate company Kotak Mahindra Capital Company The Auto Finance Business of the Group is hived off into a separate company .Kotak Securities. marking the group's entry in information distribution Kotak Mahindra Asset Management Company is incepted and they enter into the mutual fund market.com). Matrix is sold to Friday Corporation and the Insurance Services is launched.Kotak Mahindra Prime Limited. Kotak Mahindra Venture Capital Fund is formed and the private equity business of the group commences. Kotak Group launches a real estate fund 1995 1996 1998 2000 2001 2003 2004 2005 NIS Academy. 2010 Page 1 . gets converted into a commercial bank. Kotak Mahindra makes a tie with Old Mutual plc. MBA. Kotak Mahindra takes up a major stake in Ford Credit Kotak Mahindra Limited to finance Ford vehicles. A private equity fund (India Growth Fund) is launched.

2010 Page 1 . The bank has a presence in the Commercial Vehicles. Corporate Banking and Treasury and has recently entered the Housing Finance segment. Retail Finance. is a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group. LLP. NIS Academy. The Kotak Mahindra Group’s flagship company. MBA. was converted into a bank – Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Kotak Mahindra Finance Ltd which was established in 1985. Kotak Mahindra Capital Company Limited (KMCC).2006 The Group buys 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities THE JOURNEY SO FAR… KEY GROUP COMPANY AND THEIR BUSINESS. It’s banking operations offers a central platform for customer relationships across the group’s various businesses. India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI.

KMCC's core business areas include Equity Issuances. Is one of India's largest brokerage and securities distribution house in India? Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and retails investor categories with presence all over the country through franchisees and co-coordinators.the retail arm of Kotak Securities Ltd. Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra Bank Ltd and Ford Credit International Inc. (USA) formed to finance all non-Ford passenger vehicles. …. Structured Finance and Advisory Services.. a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group. MBA. 2010 Page 1 .KOTAK MUTUAL FUND.kotakstreet. Fixed Income Securities and Principal Business.KOTAK CAR FINANCE…. a subsidiary of Kotak Mahindra Bank. is the asset manager for Kotak Mahindra Mutual Fund (KMMF). LLP. KMP is one of the country’s leading players in car finance and is focused to financing and supporting automotive and automotive related manufacturers. Kotak Securities Ltd.. Kotak Mahindra Asset Management Company (KMAMC).. ….com) and offline services well-researched expertise and financial products to the retail investors. KMMF manages funds in excess of Rs 4000 crores and offers schemes catering to NIS Academy.KOTAK SECURITIES…... Mergers & Acquisitions. ……. dealers and retail customers. offers online (through www.. Kotak Street ..

It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. 00.investors with varying risk. MBA. is a joint venture between Kotak Mahindra Bank Ltd.000 divided into 10. • • -The proposal of changing the name from 'Kotak Mahindra Finance Ltd' • To 'Kotak Mahindra Bank Ltd' and the proposal to change the • Authorized capital from 100.000 NIS Academy.30cr Kotak Mahindra's media • AOR Account. to make them financially independent. Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Old Mutual Life Insurance Limited. 2010 Page 1 .return profiles. and 00. and 00. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products. and Old Mutual plc. 00. THE JOURNEY OF KOTAK MAHINDRA BANK 2003 -Madison Communications has won the Rs.

R Punja as the Directors of the Bank. and has said to be working professionally. • -Kotak Mahindra Investment Co Ltd.Shankar Acharya has been appointed as the Additional Director to the board of the bank. which would allow KMB's customer free access to around 800 ATM's. PCC a subsidiary of Kotak • Mahindra Capital Company has constituted itself from a private company to a public limited company and has changed • Its name to 'Global Investment Opportunities Fund Ltd'. • -Dr. MBA.A. private equity investors and potential strategic investors. • • -Kotak Mahindra Bank has entered into an ATM sharing agreement with UTI Bank. 2010 Page 1 . • -RBI has granted license to Kotak Mahindra Finance Ltd to embark on Its Banking business.A Pinto and Mr.10 each has been approved by the company shareholders. -O & M has got the creative account of Kotak Mahindra Bank.• Equity shares of Rs. • -The Board of Kotak Mahindra Bank Ltd accepts the resignation of • Mr. • -Kotak Mahindra bank has unveiled several home finance products NIS Academy.S.M. • -Kotak Mahindra Bank has received a lot of interest from portfolio • Investors. • -Kotak Mahindra Bank has started its operations in New Delhi by • Inaugurating a Branch Connaught place office.

• • --Kotak Mahindra Bank launches online remittance services called. 2003. Ahmedabad with • Effect from January 20. • -In response to the repo rate cut by the RBI. the Kotak Mahindra Bank has reduced its lending rates in home loans. • -Kotak Mahindra Mutual Fund has launched Kotak Opportunities.options which includes: • Home loan. • FUNDS to HOME • For Non-resident Indians. • -Kotak Mahindra Bank sets up branch in Surat. 2010 Page 1 .e. 2004. • • 2004 • -Kotak Mahindra Bank Limited has informed that the Bank's equity • Shares will be delisted from The Stock Exchange. Home equity Loan. an • Open-ended equity growth scheme • -Kotak Mahindra Bank inks pact with Reuters 2005 NIS Academy. -Kotak Mahindra Bank Limited has informed that the equity shares of the Bank have been delisted from the Delhi Stock Exchange Association Ltd w.f December 10. MBA. Home loan transfer and Home improvement loans.

2010 Page 1 . Simplifies Filing of IT Returns 2008 NIS Academy. MBA. • -Kotak Mahindra to buy out Goldman Sachs' stake in JVs • -Kotak Mahindra Bank sets up branch in Valsad • -Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio 2007 • -Kotak Mahindra Bank Launches Home Banking.com • -Kotak Mahindra Bank invests Rs 25 cr in BFW 2006 • -Kotak Mahindra joins hand HDFC Bank to share ATMs. Improves Banking • Experience • -Kotak Mahindra Bank Launches Salary 2 Wealth • -Kotak Mahindra Bank Launches Kotak Gold Debit Card • -Kotak Mahindra Bank Ties up with Taxshax.000 cr • -Kotak Bank joins hands with IndianNGOs.com.• -Kotak Mahindra Bank purchases stressed assets worth Rs 1.

SWOT ANALYSIS OF KOTAK MAHINDRA BANK. Well capitalized.• Kotak Mahindra Bank launched credit cards for its customers. 625 crore 2. 2009 • -Kotak entered into tie up with Russia's top investment bank • -Kotak Mahindra Bank Wins IT Team of the Year for 3rd • Consecutive Time at the Banking Technology Awards 2008 . STRENGTHS: • Professional management • • Strong technology.. WEAKNESS: • Latecomers • Less Promotional Activities NIS Academy.. MBA. 645 crore Net Advances Rs16. • Comprehensive cash management system • • Total Deposits Rs15. 1. 2010 Page 1 .

3. Mutual fund. MBA. Gold) Government Rules And Regulation NIS Academy. THREATS: • Capital Market slow-down • Other better Saving Facility by other Competitor • Rising Rates • • investment option available (like Insurance. Realestate. OPPORTUNITIES: • Have best services & product compare to other bank 4. 2010 Page 1 .

. NRIs An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. Non –Resident foreign citizens of Indian Origin are treated on par with nonresident Indian Citizens (NRIs) for the purpose of certain facilities.NRIs………………. World Bank etc. including its affiliates.…………….. 2010 Page 1 . NIS Academy. Main categories of NRIs The following are the main three categories of NRIs:(i) Indian citizens who stay abroad for employment or for carrying on a business or Vocation or any other purpose in circumstances indicating an indefinite period of stay abroad. International Monetary Fund (IMF). (ii) Indian citizens working abroad on assignment with foreign government agencies like United Nations Organization (UNO). MBA.

MBA. including Indian diplomat missions. and other current income can be repatriated on completion of documentation • Transfer amounts up to a limit of USD 1 million each financial year on completion of documentation • Settle your International Credit Card dues through your NRO account for cards issued by banks in India NIS Academy. dividend. abroad. We offer • • • • • Diversified investment options Power packed NRI Accounts and Deposits Remittance and Foreign Exchange Services Insurance Portfolio Investment schemes under FEM BANKING: NRO Rupee Savings Bank and easily access your Indian income and earnings with an NRO Savings account. be it moderate return. rent.(iii) Officials of Central and State Government and Public Sector undertaking deputed abroad on temporary assignments or posted to their offices. For Non Resident Indians and Persons of Indian Origin we have a specially designed product range for banking and investments. 2010 Page 1 . What makes the NRO Rupee Savings account different? • Deposits from any source in India and abroad are accepted subject to repatriation restrictions for foreign currency • Pension. Choose a product that best suits your investment objectives. You can also easily credit your account from anywhere in the world. quick liquidity or capital preservation.

What makes the Rupee Advantage Plan different? •Involves a forward contract on your FCNR Deposit in USD / GBP / EURO / JPY NIS Academy. MBA. completely repatriable NRE Savings account. 2010 Page 1 . Benefit from an account designed to help you earn more from your Rupee savings in India. NRE Rupee Savings Manage your overseas earnings with a totally tax-free. Ten Lakhs) *Tax Deducted at Source (TDS) certificates are issued. Get this plan and add on to the benefits of the FCNR deposit.• The principal amount in an NRO Account is completely tax free while the interest earned is taxed* at 30% plus applicable surcharge and education cess (interest income less than Rs. What makes the NRE Rupee Savings account different? • Deposits from a local source accepted only if reparable • No charge deposits of funds received from abroad as Traveler's cheques or foreign currency brought through normal banking channels into your account • Accepts maturity proceeds of investments purchased from even NRE / FCNR Accounts • The principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax in India Rupee Advantage Plan Earn higher returns with an FCNR Deposit combined with a forward cover in INR under the Rupee Advantage Plan.

000 or equivalent in any of the four currencies •Deposit for a period of 1 year 1 day for higher interest *Tax Deducted at Source (TDS) certificates are issued.•Deposit a minimum of USD 25. Protect your money from exchange rate fluctuations by maintaining your FCNR deposit in international currencies. What makes the FCNR Deposit different? • Rupee conversion to Foreign currency before booking as an FCNR deposit • Deposits from a local source accepted only if reparable • No charge deposits of funds received from abroad as Traveler's cheques or foreign currency brought through normal banking channels into your account • Accepts maturity proceeds of investments purchased from even NRE / FCNR Accounts • The principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax in India *Tax Deducted at Source (TDS) certificates are issued. Please contact your Branch or Relationship Manager to confirm the yield before actual placement of funds. 2010 Page 1 . MBA. NIS Academy. zero tax liability FCNR Deposit account in various currencies. Please note: Rates and Yields offered are provisional and subject to change at any time without prior notice. FCNR Deposits Enjoy attractive returns from a fully reparable.

MBA. Benefit from lowered tax rates on your Kotak Max Yield NRO Fixed Deposit under the Double Taxation Avoidance Agreement (DTAA) of India with these countries Rate of TDS on interest forRate of TDS on interest for Max Yield NRO DepositRegular NRO Deposit(without (with DTAA benefit) DTAA benefit) 15% 30% plus surcharge and cess Country US NIS Academy.NRO Term Deposits Maximize your earnings in India and get easy access to your funds anywhere with NRO TDs. Ten Lakhs) *Tax Deducted at Source (TDS) certificates are issued. Gain with the Kotak Max Yield NRO Deposit! Now you can earn more from your savings with a Kotak Mahindra Bank Max Yield NRO Deposit. dividend. Carry out your transactions in India through your Term Deposits held in Indian Rupees. What makes the NRO Rupee Term Deposit different? • Deposits from any source in India and abroad are accepted subject to repatriation restrictions for foreign currency • Pension. rent. 2010 Page 1 . and other current income can be repatriated on completion of documentation • Transfer amounts up to a limit of USD 1 million each financial year on completion of documentation • Settle your International Credit Card dues through your NRO account for cards issued by banks in India • The principal amount in an NRO Account is completely tax free while the interest earned is taxed* at 30% plus applicable surcharge and education cess (interest income less than Rs.

Invest in this term deposit to earn more from your India savings. a simple declaration stating that you are eligible for the DTAA provision will be required.UK Singapore South Africa Belgium Kenya Saudi Arabia UAE Australia Canada 15% 15% 15% 15% 15% 15% 15% 15% 15% 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess 30% plus surcharge and cess **Apart from basic account opening documentation. MBA. NRE Term Deposits Benefit from NRE TDs with no tax liability. to avail of the DTAA benefit. 2010 Page 1 . complete repatriability and a host of value added services. What makes the NRE Rupee Term Deposit different? • Deposits from a local source accepted only if repatriable • No charge deposits of funds received from abroad as Traveler's cheques or foreign currency brought through normal banking channels into your account • Accepts maturity proceeds of investments purchased from even NRE / FCNR Accounts • The principal and interest earned in an NRE Account are completely tax free and exempt from Income Tax in India P O Box Services NIS Academy.

2010 Page 1 .O BOX NO. 66. UNITED KINGDOM TO SEND YOUR DOCUMENTS TO KOTAK MAHINDRA BANK.Sending your documents to India from the US or UK is now convenient and cost-effective! Sending your banking documents to us is now a matter of ease. MBA. P. Kotak Mahindra Bank reserves the right to destroy such instruments or return them back to you. NY 14240-0688. Your documents shall be picked up twice a week. Terms & Conditions NIS Academy. sign it and attach it with your documents c.PO Box request form b. INDIA: a. INDIA . TW59RT. UNITED STATES OF AMERICA UK BOM/UK/1217614/KOT P. TO KOTAK MAHINDRA BANK. Please do not include cheques or any other financial instruments. HOUNSLOW. Do not use a courier or registered post service.O. BOX 688. Simply send a local courier to the address mentioned below. ordinary post to the P O Box location mentioned above. BUFFALO. Print out this request letter. Fill it.NRI SERVICES USA BOM/USA/1217614/KOT SPRING. Send it by local.

interest rates. Kotak Mahindra Bank Ltd. India is only availing of the services provided by Quantum Mail Logistics India Pvt. 2010 Page 1 . Box and collects all packets / envelopes and couriers all documents to the Quantum Mail Logistics India Pvt. arising due to the time elapsed due to return of the monetary instrument. India shall not be responsible for any loss in transit or any monetary loss including loss on account of change in exchange rates. P.•Kotak Mahindra Bank Ltd. NRI Services. nor Quantum Mail Logistics India Pvt. Ltd India will be responsible or liable to the user or any third party for the "Envelopes/Consignments or its Contents" (collectively referred as "Consignments") during the transit from the user to the PB NIS Academy. Ltd India (the service provider).O. in the aforesaid countries •Twice a week. is not responsible for any loss in document arising out of the documents sent to a wrong address or documents lost in transit before reaching the Kotak Mahindra Bank Ltd. Ltd.. deposit value date etc.O. opens the P. •Kotak Mahindra Bank Ltd. MBA. Box •Confidentiality of the documents send by the customer would be maintained •The users of the Post Box (PB) facility are availing the service at their own risk • Neither Kotak Mahindra Bank Ltd. Ltd India Office from where they are sent to Kotak Mahindra Bank. Quantum Mail Logistics India Pvt.

may inform the user by email to the email ID furnished by the user. •User is aware that Kotak Mahindra Bank Ltd. is not liable or responsible to either user or any other person for such destruction • User agrees that he shall be solely responsible for the contents of the Consignment and shall indemnify Kotak Mahindra Bank Ltd. will not process the documents without furnishing this letter duly filled with and in the event no letter or incomplete information are furnished Kotak Mahindra Bank Ltd. for any loss or damage suffered to it on account of handling the contents NIS Academy. Quantum Mail Logistics India Pvt. Kotak Mahindra Bank Ltd. Mumbai. is neither responsible to return the documents to the user or to keep it in safe custody • In the event the users instruction/s cannot be carried out owing to any discrepancy or otherwise Kotak Mahindra Bank Ltd. MBA. 2010 Page 1 . is not responsible for non-receipt of such email on account of any incorrect email ID or systemic error or non-acceptance by the computer system of the user • Kotak Mahindra Bank Ltd. is not liable or responsible for any loss or destruction of the Consignments in the hands of Quantum Mail Logistics India Pvt. Ltd shall be responsible for the Consignment to the user till it is transshipped and delivered to Kotak Mahindra Bank Ltd. Ltd.•On receipt of the Consignments in the PB. CPC NRI Cell. shall in its sole discretion destroy the documents after two months of receipt without any further reference to the user and the user agrees that Kotak Mahindra Bank Ltd. By availing the service of PB the user shall be deemed to have agreed to entrust the transshipment to India in his sole risk and discretion to G3 worldwide India and Kotak Mahindra Bank Ltd.

Use this ATM plus debit card to carry out your India transactions when you visit home. Access your account as you travel across countries and enjoy the benefits of the Kotak Global Debit Card. Benefits of the Access India Card •Access to any VISA ATM and stores accepting VISA in India •Gift an Add-on Card to a person of your choice (above 18 years) for their personal use. Benefits of the Global Debit Card •Worldwide access to any VISA ATM and stores accepting VISA worldwide •Specify a daily withdrawal limit and link it with your account •Stay updated on your account status with SMS alerts NIS Academy. Access India Debit Card Enjoy seamless India access through your NRO Account whenever you visit home. MBA. Specify a daily withdrawal limit and link it with your account •Stay updated on your account status with SMS alerts Eligibility •NRO Savings / Current Account Global Debit Card Benefit from an International ATM plus debit card with VISA Power across the world. regulatory or contractual requirements of the user.or merely the letter being addressed to it in view of legal. 2010 Page 1 .

MBA. demat and investment accounts 24x7. Use the Kotak Mahindra Bank toll free number to access your account anywhere you go. 8 Benefits of Phone Banking •Instruct a Kotak officer to transact once you have the single or unconditional signing authority on your account •View account balance. transfer progress and more •Cheque book request and account statements •Request the latest interest and exchange rates •State standing instructions or stop cheque payments •Request Transfer of funds between accounts (NEFT) •Open a Term Deposit or get information •Inquire transaction status. 8 Benefits of Net Banking • • Log in with any of your Kotak Mahindra Bank NRI accounts View account balance. activity. 2010 Page 1 . Demat status of securities Online Banking Net Banking for easy access to your deposit. transfer progress and more NIS Academy. View and transact with a single or unconditional signing authority on your account.Eligibility •NRE Savings / Current Account Phone Banking Get personalized service round the clock at our 24 hr Customer Contact Center. activity.

000. NIS Academy. 50.• • • • • • View and update personal details Request for a cheque book. Deposits and Investments. a premium banking services offering financial solutions with exclusive benefits. Demat status of securities Privy League Kotak Mahindra Bank introduces Privy League. luxuriously and retire to comfort while you meet your responsibilities. PIN and other enhanced features Transfer funds online between accounts (NEFT) Open a Term Deposit View securities available for Demat Inquire transaction status. 2010 Page 1 . grow your wealth. Privy League members are required to maintain a Savings Account with an Average Quarterly Balance (AQB) of INR Rs. Join the Privy League to expand your lifestyle. Privy League Membership: •Available to Resident Individuals and Non Resident Individuals •Members above the age of 18 years only •Choice of two plans based on your Financial Objective and Portfolio o Gold Plan for Relationship Value* of INR 10 Lakhs o Platinum Plan at a Relationship Value* of INR 25 Lakhs Note: Relationship Value comprises of your balance across Savings Accounts. travel the world. MBA.

sport and indulge your choice of leisure activities with Privy League lifestyle offers. premiers. Kotak Payment Gateway and Investment Convenience Locker services across multiple locations (in select branches) at a preferential price Kotak Gold Eternity offers on are Swiss-made. 99. and easy tax payments payable at a Kotak Mahindra Bank branch itself • • • • • Lifestyle Updates: Experience the world of culture. Lifestyle Privileges: • • Dining benefits at the best restaurants in town Entertainment & Leisure Privileges with exclusive invites to movies. MBA. Banking Privileges: • • • Privy League Platinum Debit and ATM Card with flexi limit facility and added waivers and offers Home Banking services like Bill Pay.Carat pure. Parekh & Co. 2010 Page 1 .99% Assay certified Gold coins and bars ranging from 5 to 100 gms Internet banking to access special offers. theatrical plays. sporting events and more NIS Academy. promotions and exclusive benefits under the Privileges section Preferred Processing of banking transactions at all branch locations Special Fees and Charges on various services Tax Advisory Services through our tie-up with Sudit K. 24 .Special Privileges for Privy League Customers: Premium Banking: With Privy League you enjoy access to a range of financial solutions with your bank account in addition to accelerated customer service from your dedicated Relationship Manager.

travel operators. bouquets and chocolates Travel and Holiday offers with tie ups for car rentals. Details of Lifestyle Privileges are available under the Post Login section of Net Banking. business equipment. rejuvenation centres and much more Concierge Services available with the VISA Platinum Card on travel plans. Tax Advisory or Investment workshops. 2010 Page 1 . premium car test-drives and lifestyle product launches Convenience Offers like gifting services to your loved ones on special days round the year from a choice of flowers.• • • • Attend knowledge-based seminars. This online remittance facility uses the standard Automated Clearing House (ACH) platform. hotels. TRANSFERS Direct Debit Make a paperless transfer with just one click Use this simple method to send home money from the comfort of home. activate facility from a link in your FUNDS to HOME account Send your remittance NIS Academy. How you can register for Direct Debit • • • • • • Log on to FUNDS to HOME Register for Direct Debit Provide details Validate your account After 5 days. MBA. entertainment plans and other specialty services courtesy of VISA Note: Terms and Conditions applicable.

Get funds in your Kotak Mahindra Bank Account within 5 working days* Demand Drafts will be delivered in 3 working days** *5 working days after instructions have been received by us. *3 days after receipt of funds at Kotak Mahindra Bank for Metros and Non-Metros (not including Saturdays.not including Saturdays. Working days. How to make a Cheque transfer • • • • • Log on to FUNDS to HOME Provide cheque details Mail the instrument to PO Box 11448A . Sundays and Public Holidays). REGISTRATION Cheque Send home money to your Kotak bank account Now you can encash any cheques drawn on your Kotak Mahindra Bank Account through your FUNDStoHOME account. 2010 Page 1 . Wire Transfer Send home money to your Kotak bank account Make a direct transfer from your account abroad to Kotak Mahindra Bank to send home money in the most secure manner.New York NY 10286 1448* This Lock Box address is mentioned in the deposit slip Remittances from ME Send home money to your Kotak bank account NIS Academy. MBA. Sundays and Public Holidays in both countries.

(To book an FCNR term deposit. You can move money from your account to a Kotak Mahindra Bank account in India with ease. The beneficiary's account number with Kotak Mahindra Bank Branch. Asia and Australasia. What details do I need for a wire transfer? • • • • • • Kotak Mahindra Bank's Correspondent Bank Nostro account number and SWIFT Code. Click here to see Correspondent Banks. MBA. How do I transfer money through a Kotak partner? • • Select the branch or designated associate outlet of your convenience. Make a cost-effective money transfer through agents across the Gulf. Specify the identification for your name and address in the remittance message in this format to your overseas banker. Europe. North America. State the purpose of the remittance with instructions for the Bank to invest the funds.Transfer money at economical rates through the Exchange Houses and Money Transfer Agents having an arrangement with Kotak Mahindra Bank. This remittance in Indian Rupees is specially designed to benefit NRIs in the Middle East. Kotak Mahindra Bank SWIFT Code : KKBKINBB NIS Academy. Wire Transfer Use Kotak Mahindra Bank's wire transfer facility to make secure international wire transfers from your bank account. 2010 Page 1 . mention it clearly including the currency of deposit) Ensure mention of complete details in the message by the local remitting bank.

Remember! Check if the demand draft is valid and not endorsed Currency Turn Around Time for Transfer to beneficiary Account* 6 working ** days for USD instruments drawn on banks in USD New York City. MBA. 14 working ** days otherwise. ** Excluding Saturdays. receive alerts and do more in your Investment account at your convenience.NOTE: Kotak Mahindra Bank does not take any responsibility for delay in receipt of funds from the Originating Bank due to incomplete information. you can open your Investment account even with a zero balance. 2010 Page 1 . As a Kotak Mahindra Bank customer. Euro 10 working ** days GBP 10 working ** days SGD 21 working ** days * From the date of credit to Kotak Mahindra Bank's nostro account. Cheque Write out a Cheque or demand draft favoring your Kotak Mahindra Bank Account and leave the money transfer to us. Sundays and Public Holidays INVESTMENTS: Investment Account View your portfolio. Your Kotak Investment Account gives you more: • Stay updated with a daily MF Portfolio statement NIS Academy.

• • •

• •

Link your Net Banking account with your MF purchases for filling MF forms or cheques for every transaction Receive redemption proceeds directly in your Bank Ac View your Portfolio Statement for a consolidated report of all your MF investments, across schemes, with latest NAV information, updated returns status and more Get Mutual Fund Recommendations Choose between opening an online investment account with us on a reparable or on a non-reparable basis*.

NOTE: As Per the regulatory framework, the investments for all existing
Kotak customers with an investment account are re-grouped into separate investment accounts. The re-grouping is based on the Reparability status of the Folios held to help you manage your investments efficiently. *Online Mutual Fund investment services are available to NRIs in all countries except those based in USA and Canada. NRIs based in UK can register on visit to India

Recommendation
Earn more with your pick of mutual funds from a recommended list of consistent and highly performing mutual funds. Kotak prepares a list of top performing mutual funds for your reference every quarter.

How do you judge MF performance?
Kotak's comprehensive process accounts for both high returns and consistency of returns to select the best performing Mutual Fund schemes. The main criterion for selection is the Excess Return Potential Ratio to test the performance consistency of the funds. The research includes keen analysis across four time horizons, every 6 months. Some factors are:
NIS Academy, MBA, 2010 Page 1

• • •

Reward to Risk Analysis Portfolio Characteristics Corpus size

MF Assistance
Gain from expert advice and analysis at each step with Kotak Mahindra's experienced research team. Find the MF option most suitable for you with latest mutual fund communication like fact sheets from Kotak's team of experts. How we choose MFs on the Kotak advisory list? The Kotak team of experts investigates:
• • •

Asset Management Company's Investment philosophy Portfolio quality Risk-adjusted returns of the scheme

What does the advisory list include? The Kotak MF advisory list ranges from Debt to Equity funds. These MFs are selected from high performing schemes observed under reputed Mutual Fund houses like Franklin Templeton, Reliance, Prudential ICICI and others.

Demat Account
Invest in the Indian market through Kotak depository services with easy to trade shares in the "demat" format. Do more with your investments through Kotak Mahindra Bank's highly efficient depository service. Once you consolidate your shares in a Demat account, you can trade all your securities at your convenience.

NIS Academy, MBA, 2010 Page 1

Why open a Kotak Demat Account?
• • • •

At Kotak Mahindra Bank, you pay the minimum service charges in the market We take care of paper work like debt requirements of companies (Issue of Commercial Paper, Certificate of Deposits, etc.) to us Your composite Demat Account can hold not just equity shares but also Government Securities and bonds Get any query or assistance from a dedicated and trained Customer Care Officer even while you transact

Portfolio Investment Services
You can now purchase equity shares and convertible debentures in India under the Portfolio Investment Scheme (PINS). With the Kotak Group of financial services, your transactions are seamless across accounts. It is easier than ever to invest and earn from the Indian secondary market through a PINS account designed for NRIs by the Reserve Bank of India.

How can I open a PINS account? Open a PINS account
• • • •

at any of these RBI Designated Branches Call Kotak 24x7 Customer Care Mail us at nriservices@kotak.com Visit any Kotak Branch

NOTE: Online PINS investment services are available to NRIs in all
countries except those based in USA and Canada. NRIs based in non GCC countries can register on visit to India.

NIS Academy, MBA, 2010 Page 1

a home loan etc.Kotak Term and Preferred Term Plans: Now you can profit from a pure risk cover policy that also offers life cover at minimal costs. single and limited premium payment options Growth Plans Choose the right insurance policy from a range of options Kotak Smart Advantage Plan: Make way for your future plans with the Kotak Smart Advantage policy from Kotak Life Insurance. The Kotak Preferred Term Plan offers special premium rates for a sum assured of Rs. How do you gain? • • • • Low cost insurance plan with high cover Special rates for women and non-tobacco users Flexibility in choice of Premium Payment Choose from . paid at maturity Increased fund value with regular loyalty bonus during the term of the policy Maximized earnings with 100%* Premium allocation from second year onwards NIS Academy. This plan helps you pay off your outstanding debts like a mortgage. How do you gain? • • • Guaranteed returns of up to 275% on the first year premium. This market linked plan invests your savings with 100% premium allocations to make your money grow consistently over a long term. MBA.10 lakhs and above for nonsmokers and women. The policy is non-participating but has value added benefits you can choose to gain with this plan. 2010 Page 1 .regular.

How do you gain? • • • • • One-time premium payment Life ling Investment benefit Choose from six fund options varying in growth and returns Increase investment by up to 25% of single premium paid Easy exit options with access to cash withdrawal Kotak Capital Multiplier Plan: See your investment multiply with the Kotak Capital Multiplier Plan.• • Flexible choice of life cover Protection for your family and loved ones *Applicable for premium sizes of Rs. 2010 Page 1 .000 and above annually from second year onwards. This endowment plan allows your capital to grow in the market and also gives you the flexibility to withdraw amounts whenever you require it. Kotak Easy Growth Plan: Earn more today with the market linked Kotak Easy Growth Plan with a single premium option. How do you gain? • • • Flexible extension of policy term beyond maturity Earn additional 10% above the original life-cover across the policy term Withdraw plan maturity proceeds with a free ATM card NIS Academy. This insurance plan meets the need for lifelong security with a single payment through your choice of up to six fund options. MBA. 36.

2010 Page 1 . MBA.• • Increased fund value with regular loyalty bonus during the term of the policy Add to your policy amount with top-up premiums Savings Plans Choose the right insurance policy from a range of options Kotak Flexi Plan: With this market-linked investment plan. Kotak Endowment Plan is a participating plan that allows you to earn over a long term through regular investment. The Kotak Flexi plan manages to earn efficient returns over the long term while securing a Guaranteed Maturity Value at the same time. you can provide for the future and ensure protection for your family. How do you gain? • • • Earn from your savings and enjoy life cover Get extra bonuses on the plan Make a Limited premium payment per your convenience NIS Academy. How do you gain? • • • • • Grow your money with market highs and be risk safe during market lows Choose from a wide range of funds per your risk capacity Select a Limited Premium or Regular premium payment option Increase your Investments any time with a premium top-up Enjoy easy liquidity through partial withdrawal of maturity proceeds Kotak Endowment Plan: Protect your family during contingencies while growing your savings today.

2010 Page 1 . NIS Academy. This participating. MBA. You receive a certain amount of the premiums paid back depending on the option you choose along with maturity benefits available.Kotak Premium Return Plan: Get risk coverage and assured returns with the Kotak Premium Return plan. You can enjoy a Guaranteed Maturity Value where you profit from the market highs but do not lose with market lows. How do you gain? • • • • Minimum premium payments Benefit from guaranteed Additions on maturity Get a 7% increase in sum assured at the end of each year under death ……benefit Enjoy bonuses from the plan Kotak Safe Investment Plan II: Benefit from a unit linked plan that earns through the capital market and also offers risk cover. savings plan gives you a life cover benefit while allowing you a regular income every five years. How do you gain? • • • Minimum premium payments Get back premiums paid depending on term of the plan Hassle free plan as it does not require a medical examination Kotak Money Back Plan: Earn back a percent of the amount assured in cash with the Kotak Money Back Plan.

You can choose the extent of investment risk and guarantee against falling markets. Flexibility to opt for early retirement due to ill-health Increase investments with a premium top-up before retirement Increase your Investments any time with a premium top-up Get Automatic Cover Maintenance. Kotak Retirement Income Plan (Unit Linked): Make a high earning investment for your future with unit linked Kotak Retirement Plan.How do you gain? • • • • • Grow your money with market highs and be risk safe during market lows Choose from a six fund options per your risk capacity Select a flexible risk cover option per your needs Increase your Investments any time with a premium top-up Enjoy easy liquidity through partial withdrawal of maturity proceeds Kotak Retirement Income Plan: Save for your old age with the Kotak Retirement Income plan with a choice of "with cover" for life or "without cover. under the "with cover" option to ensure coverage in spite of unpaid premiums after first three years of the term." How do you gain? • • • • • Specify retirement age anytime between 45 yrs. 2010 Page 1 . This investment plan earns for you even after you are no longer employed. MBA. and 65 yrs. How do you gain? • Maximum earnings with capital preservation NIS Academy.

... Kotak will also showcase its expansive portfolio of financial products. being hosted this year (7th ..9th January.. 2010 Page 1 . These offerings from the Group are specifically customized to suit the overseas Indian investors' personal financial needs. at Vigyan Bhawan.. New Delhi. established as a focal point for facilitating the process of economic engagement of the Indian diaspora with India. 2010).. The Overseas Indian Facilitation Centre is a not-for-profit public private initiative between the Ministry of Overseas Indian Affairs (MOIA) and Confederation of Indian Industry (CII). OIFC The Kotak Mahindra Group has joined the Overseas Indian Facilitation Centre (OIFC) as a Strategic Partner. MBA. with interactive opportunities for participants to get a closer insights of all that the Group is into and avail of taxation. This alliance will give Kotak a platform to share its comprehensive range of Wealth Management Advisory and Investment offerings in form of products and services for Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs).• • • Choose from five fund options Flexibility to opt for early retirement due to ill-health Increase your Investments any time with a premium top-up ………NRI HELP CENTRE. real estate or financial advisory NIS Academy.. At the Pravasi Bharatiya Divas Convention...

interact.equity securities of unlisted companies. o Private Equity. MBA. such as a single security. and build networks for mutual benefit. 2010 Page 1 .Real estate funds founded by a group of real estate professionals/experts to 'manage' property/real estate for the investor.a pre-packaged investment strategy based on …derivatives. customized financial plan that advises you on your asset allocation and what schemes to invest in. o Real Estate . The products offered are broadly divided into Traditional and Specialized categories: • Traditional Investments comprise mainly of Direct Equity. commodities.services. debt issuances and foreign currencies.a process involving the counsel of professional advisors who are familiar with your goals and NIS Academy. a basket of securities. Mutual Funds. options. besides having Ministers of States together on issues that their states need to attend on priority to improve facilities and incentives for the overseas Indian community Wealth Management Kotak Wealth Management brings you a complete. A feature of …some structured products is a "principal protection" function which offers …protection of principal if held to maturity. indices. factoring in all your financial objectives. The focus of this convention held every year is on bringing together eminent overseas Indians to engage. o Estate Planning. Insurance • Specialized Investments include diverse investment opportunities namely: o Structured Products.

San Francisco and Singapore specialize in managing a wide range of India investment funds through which overseas investors like you can invest in India. Ace Deposit. 2010 Page 1 . and your family structure. while safeguarding the principal amount of the Fixed Deposit. NRO accounts. Overdraft Facility against Term Deposits. Click here to know more Briefly. and Privy League which is an exclusive offering for select clientele who expect more out of their banking experience.available in the form of Savings and Term Deposits to manage your income in India. MBA.available in the form of Term deposits denominated in USD/GBP/EUR/ JPY which are completely reparable and tax-free. There are also special products like Max Yield Deposits where you can earn a higher return on your NRO deposits through the DTAA benefit. Click here to know more NRI Banking Kotak Mahindra Bank offers Banking and Investment Solutions for a jet setting Non Resident Indian like you. International Subsidiaries The international subsidiaries of Kotak Mahindra Bank Limited. New York. Mauritius. Foreign Currency Non Resident Accounts (FCNR). Investments through Kotak Mahindra Bank Portfolio Investment Services NIS Academy.concerns. your assets and how they are owned.available in the form of Savings and Term Deposits which are completely reparable and taxfree. the product range includes NRE Accounts. Dubai.a unique product that invests interest earned on your deposit into Equity Mutual Funds and hence creates an avenue for earning market linked returns. through their offices in London.

receive alerts and more through your Investment account at your convenience. knowledge and constant monitoring of the market. You have the option of investing online* too! Mutual Fund Services View your portfolio. Choose between opening an online investment account with us on a repatriable or on a non repatriable basis*. this scheme is an excellent solution NIS Academy.Direct Equity Investments Kotak Securities offers you specialised products depending on your requirements and also provides conventional brokerage & advisory services. Kotak Securities . Contact us for this information. Click here to know more Investment products offered include • TRINITY. *the online facility is not available in certain countries. 2010 Page 1 .Profit from investment in equity shares in India under the Portfolio Investment Scheme (PINS). Get a host of attractive features customized to NRI needs with an easy to avail home loan. MBA. Home Finance Buy your space in India with any of Kotak's flexible options to finance your dream home. If you need expert help.seamless investment facility into shares and mutual funds • Portfolio Management Schemes • Discretionary .Investing in equities requires time.

The claims and the premiums paid are tax free Risk Profiler Estimate and understand your investment risk profile based on 11 questions to help recognize the right investment type for your profile. i.Your claims are paid in the same proportion of the currency in which you make premia payments Tax Benefits. NIS Academy. Investment Wizard Use this simple wizard for getting started on your india investments with three easy steps.Invest seamlessly from your NRE or NRO bank accounts. We offer you a suite of products that would suit your requirements.A consultative and transparent method of investing where you are always consulted and informed of investment decisions. Click here to know more. Basic information: • • • • • • Investment Modes. we understand your attachment to your homeland and need to save for you family's future..• Non-Discretionary.Under the Income Tax Act. MBA.you have the option of foreign currency policy. 2010 Page 1 . Foreign currency policy. your Sum Assured is represented in equivalent foreign currency.e. 1961: Tax deductions are available against the income earned in India and taxable in India. thus giving you total control • Corporate fixed deposits & government bonds Kotak Life Insurance At Kotak Life Insurance. Claim Settlement .

000 NIS Academy. (UTIISL) The National Securities Depository Limited (NSDL) Validity: Lifetime START Why apply for an NRI PAN Card? An NRI PAN Card is required for almost all transactions of which some are: • • • • • • • • Paying taxes on Indian income under the Income Tax Act.50. 2010 Page 1 . What is a PAN Card? Stands For: Permanent Account Number (PAN) Contains: 10 alphanumeric numbers Issued by: The Income Tax Department Managed by: UTI Investor Services Ltd. It is the sole identification number for the purpose of tax payments and investments. 1961 Investing in securities per the Securities and Exchange Board of India (SEBI)* Investing in Mutual Fund schemes for all existing and prospective investors Opening an account through the enhanced Know Your Customer ('KYC') procedure** Purchase and sale of property in India Purchase and payments of vehicles Securing a telephone connections Making time deposits in a bank worth over Rs.PAN Procedure Every Indian citizen entering a financial transaction in India is mandatorily required to have a Permanent Account Number. MBA.

NIS Academy. 2010 Page 1 . Beware of AIR Reports of Taxmen By Ameet Patel The Government of India is in a very aggressive mode as far as collecting information about large financial transactions is concerned and also about tracking tax evaders. This would ensure that the Income-tax department has a central database of all tax payers in the country along with details of large financial transactions entered into by each such person in a year. 50. There is a also a very strong movement to make many processes relating to tax administration electronic and automated. Download form from the Income Tax. Online form submission through UTITSL 2. One important tool used by the Government to collect such information is the AIR. the application form for a PAN. MBA.000/under the Prevention of Money Laundering Act. Collect form locally from IT PAN Service Centers or TIN Facilitation Centers • Attach required proofs and make the payment.* Securities and Exchange Board of India (SEBI) Circular dated April 27. 2007 ** For any investment or transaction equal to or more than Rs. 3. UTIISL and NDSL websites. 2007 for all transactions irrespective of the amount with effect from July 2. 2002 PAN Application How to Apply for an NRI PAN Card? • Read Instructions to fill Form 49A. • Select a convenient method to access the form 1.

1962. An AIR has to be filed by the prescribed person who is responsible for registering or maintaining books of accounts or other documents containing record on any specified financial transaction under any law for the time being in force. 2001 with retrospective effect from 1st April. i.What is AIR? AIR is an abbreviation for the term "Annual Information Return". the exemption is NIS Academy. the Finance Minister has explained the rationale for this section as follows: "No deduction for expenditure incurred in respect of exempt income against taxable income Certain incomes are not includible while computing the total income as these are exempt under various provisions of the Act. There have been cases where deductions have been claimed in respect of such exempt income. 2010 Page 1 . Section 14A of the Income-Tax Act By Ameet Patel Introduction: Section 14A was brought onto the statute by the Finance Act. gross income minus the expenditure. Use of AIR? The purpose of collecting such information is to ensure that a person who enters into such transactions duly accounts for all such transactions for which information is independently collected from the specified persons through the AIR. MBA. While introducing this section. AIR was made effective from the financial year 2003-04. is taxed. This in effect means that the tax incentive given by way of exemptions to certain categories of income is being used to reduce also the tax payable on the non-exempt income by debiting the expenses incurred to earn the exempt income against taxable income.. This is against the basic principles of taxation whereby only the net income.e. On the same analogy.

Computation of the disallowance: As per the section. 1961. NIS Academy. in the following circumstances. 2010 Page 1 . MBA. The next step then would be to quantify such expenses and ensure that the same are not claimed by the tax payer as a deduction against any other income. have tax free income and must have actually incurred expenses to earn such tax free income. Rule 8D lays down the computation mechanism for this purpose. It merely lays down an arithmetical method of arriving at a disallowance. the tax officer has to compute the disallowance as per Rule 8D: 1) When he is not satisfied with the correctness of the claim of expenditure made by the tax payer or 2) When the tax payer claims that he has not incurred any expenditure to earn tax free income.that no deduction shall be made in respect of any expenditure incurred by the assessee in relation to income which does not form part of the total income under the Income-tax Act. This disallowance often comes to much more than the entire expenses debited to the Profit and Loss Account by the tax payer.also in respect of the net income. What this means therefore is that a tax payer must. The formula laid down in the said Rule is highly unfair and does not take into cognisance the facts of any case." Objective of the section: Based on the above rationale. Expenses incurred can be allowed only to the extent they are relatable to the earning of taxable income It is proposed to insert a new section 14A so as to clarify the intention of the legislature since the inception of the Income-tax Act. in the first place. it would seem that the objective of the section is to prevent tax payers from setting off expenses incurred to earn tax free income against other income which is taxable.

In view of conflicting decisions of various Tribunals in the matter. 87/Del/2008. However. they have been rejecting the working prepared by the tax payer and huge disallowances have been made under section 14A based on the irrational computational mechanism laid down in the Rule. would be tax free in the hands of the tax payer.Recent developments: Once the Rule 8D was notified sometime in early 2008. as and when received. This Special Bench at Delhi has given its decision vide its consolidated order dated 5th August. the latest development has made matters even worse now. Recently. 4788/Del/2007 and 233/Ahd/2006 The gist of the Special Bench decision is that section 14A would be applicable even in those cases where the tax payer has not earned any income which is tax free but has invested funds in investments which. According to the Special Bench. The rationale of the Special Bench in coming to this conclusion was its interpretation of the language of section 14A. the income from which. what was relevant was to work out the expenditure in relation to the exempt income and not to examine whether the expenditure incurred by the assesse has resulted into exempt income or taxable income. the tax officers have been mechanically applying the said Rule to all pending assessments. such income would be tax free. In most cases. 2009 in the case of ITA Nos. it has to suffer the disallowance irrespective of the fact whether the income is earned by the assesse or not. Section 14A does not envisage any such exception The Tribunal also held that the earlier decisions of the Supreme Court in the case of Maharashtra Sugar NIS Academy. It held that when the expenditure is incurred in relation to income which does not form part of the total income . 2010 Page 1 . it was decided to constitute a Special Bench. MBA. when they start yielding income. the Income-tax Appellate Tribunal had occasion to decide on the issue of applicability of the section in those cases where a tax payer had invested money in investments.

MBA. It is pertinent to note that the decision is that of the Special Bench and hence carries more persuasive value than an ordinary Tribunal decision. In such cases. Implications of the decision: The implications of this decision would be very harsh on those tax payers who have borrowings and who have invested in shares and mutual funds. as per this decision. Thus. even if the tax payer has not earned any tax free income in a year. This is also binding on the other benches of the Tribunal. the income from which. It would be very risky to take a stand that no expenses have been incurred to earn tax free income or that since there is no tax free income. now to adopt a different view. the entire expenditure is allowable. when received.Mills and Rajasthan State Warehousing holding that if there is one indivisible business. yet. the Authority for Advance Ruling (AAR) held that ET Mauritius is not liable to pay capital gains tax in India in respect of the transfer of shares held by it in AAR Ruling in case of E Trade MauritiusRead Details.1 (ET Mauritius).pdf Advisor's Profile NIS Academy. would be tax free. a part of his expenses would necessarily have to be disallowed under section 14A read with Rule 8D if funds have been borrowed at a cost and if the tax payer has investments in shares or mutual funds. would have no application after the introduction of section 14A. the question of disallowance of any expense does not arise Tax Alert In a recent ruling in the case of a Mauritian company E*TRADE Mauritius Ltd. even if the investments are long term and/or strategic ones and even if there is no income actually accruing or received during a year. 2010 Page 1 . one will have to wait till some High Court decides the matter in favor of the assesse. Hence. there would still be a disallowance of part of the interest paid based on the formula laid down in Rule 8D.

Ameet is a rank holder and has secured ranks at the Inter and Final CA examinations at the all India level. mutual funds and FIIs.100 Lakhs against the previous overdraft limit of Rs. He is also the Immediate Past President of Bombay Chartered Accountants' Society which is a voluntary organization of Chartered Accountants and has more than 8. He is currently the Chairman of its InfoTech Committee and a member of the Taxation Committee.Ameet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh & Co. He has co-authored two books on taxation Overdraft Facility Overdraft limit against NRE and FCNR Deposits enhanced to Rs. 2010 Page 1 .20 Lakhs. He is an avid writer and has contributed articles to various magazines and websites including CNBC's moneycontrol.000 members from all over India. NRO account Remittance facility is available up to USD 1 million per financial year subject to prescribed documentation. READ CIRCULAR NIS Academy.com. Credit to NRE encashment Proceeds of demand drafts/ banker's Cheque issued against encashment of foreign currency can be credited to NRE accounts where such instrument issued is supported by an Encashment Certificate issued by AD category I/ category II (Authorized Money Changers). Chartered Accountants. MBA. He specializes in corporate taxation and advises several reputed companies..

and other various markets. In this business scenario it must require to update ourselves with current market happenings relating to banking. For such a requirement the institute provides the summer internship program for students for updating themselves to current corporate NIS Academy. economy. MBA.Analysis Summer internship program is a crucial part of building student’s practical know-how about real corporate market. 2010 Page 1 . insurance.

Pramod Chauhan had provided us the orientation lectures towards the project at KOTAK BANK. By this way we have covered much villages of ANAND for our project training. we have prepared certain routes to different villages of ANAND. The training period is for 2 months i. NIS Academy. For that purpose we had obliged to collect NRI information within the ANAND District guided by the branch manager. The training is based on NRI banking products and services provided by the bank and it contains the project title named as “Market study and customer mapping for banking products and services“. During training period. the interview was conducted at our institute. we reached at approximately 1200 respondents for the purpose of collecting NRI information from them.e. body language. For such training in KOTAK MAHINDRA BANK. 2010 Page 1 .Nagar branch. Mr. etc. Then we have divided two groups for collecting data.V. and our behavior towards different class of people. He has also solved the queries of students about banking performance towards its clients. This is because we were provided some guidance from the Branch Manager for effective presentation to the people for collecting information from them. MBA. the students are required to report at KOTAK Bank on a daily basis for submitting NRI database information. In such project training we have prepared a questionnaire regarding NRI database to provide better banking services to them. Before starting our training. He has imparts needed knowledge about the project proper. For further training for collecting NRI information. Then our actual training started. On this basis our NIS Academy provided us the SIP in KOTAK MAHINDRA BANK at the V. And finally the 9 students were selected for further training in bank. We gain much experience from such a field work like confidence in ourselves. From which 400 were NRIs and we had analyzed these 400 NRIs for further procedure of analysis for providing them better Banking products and services provided by the KOTAK MAHINDRA BANK. the branch manager of KOTAK MAHINDRA BANK i. By the efforts of both group of students. 1st July to 31st August.scenario.e.

NIS Academy. 2010 Page 1 . MBA.