PRESENTED TO:

PROF. ARINDAM DAS

PRESENTED BY: GROUP 17
SYED TABREZ || UDIT AGARWAL || VAIBHAV ARORA
 CONTENT

COMPANY
OVERVIEW
COMPANY
ANALYSIS FINANCIAL
ANALYSIS AND
DIRECTOR’S
REPORT FUTURE STARTEGIES
ANALYSIS
COMPANY’S OVERVIEW
Headed under the leadership of Mr. Uday Kotak
TYPE : PUBLIC
TRADED AS:
BSE - 500247
NSE - KOTAK BANK
HQ – MUMBAI
NET REVENUE (2017) – 21176 Cr.
BRANCHES IN INDIA
% OF METRO
44%
1369 “KONA KONA KOTAK”
BRANCHES

% OF BRANCHES IN
NORTH, SOUTH AND WEST
Subsidiary Companies
94% 10 •
•
Kotak Securities Ltd
Kotak Mahindra General
Insurance Company
• Kotak Mahindra Capital Company
• Kotak Mahindra Prime Ltd
• Kotak Mahindra Old Mutual Life
Insurance
 1985
Kotak Mahindra Finance Ltd.
Commences bill discounting KOTAK’S SNAPSHOT OF 30 YEARS
business
Commences auto finance division
1990 for passenger car

1995 Enters a JV with Goldman

Sachs for Investment
Banking

2014
2003
Acquires ING VYSYA BANK
valued at ₹15,000 crore

KOTAK MAHINDRA 2017

GETS BANKING
LICENSE

• Launched 811 App

• RBI Approval For Overseas
Branch In Dubai And
• Total 1369 Branches
 HIGHLIGHTS OF KOTAK ING VYSYA MERGER

3 Will benefit from

2 Large Urban Distribution
Network Ing Vysya’s strong SME business

4 Lending to MNC’s because of Ing Vysya’s

Dutch Connections.

5 Highest Gross NPA to Gross

Advances post merger
1.27-2.08

1 4th largest private sector bank

6 Total Investments to total Assets

Reduced- 0.27-0.22
 COMPANY’S VISION

The Most Trusted The Most Preferred

Financial Services Employer in
Company Financial Services

The Global Indian Value Creation

Financial Services Brand
CURRENT KEY FOCUS

• Online
Acquisition
• Digital
DIGITAL Payment
• Lending And
FOCUS Services
• Digital
Adoption And
Analytics
 Business Model Canvas for Kotak Mahindra Bank
Key Value Customer
Key Customer
Activities Proposition Relationships
Partners/Suppliers Kotak Samridhi Segments
Banking Products
OIFC Privy League Retail
Money Ware Focus on Results
CIMB MyWorld Debit Card
Wealth Management Leadership Corporate
Scotia Bank Social Webpage
Insurance Active Involvement Institutional
Samsung India
Deloitte Key Maximum Challenge Channels Urban
Infosys Resources Entrepreneurial Bank branch Rural
VISA
Effective Human Creativity Home Banking International
Resource Xerago Self Service Devices
Airtel Stable Financial System Internet Channels
Innovation Lab Mobile Channels
Training Centre

Cost Structure Revenue Streams

Interest Expense : 9572.78 Cr
Interest | Discount on Advances & Bills |
Employee Costs : 2745 Cr
Technology Investments | Commission | Insurance
R&D Premium
 COMPANY
ANALYSIS
• PESTLE
COMPANY • SWOT FINANCIAL
FUTURE STARTEGIES
OVERVIEW • PORTER’S 5 FORCES ANALYSIS
• CPM MATRIX
• SPACE MATRIX
• EFE MATRIX
PESTLE ANALYSIS

P E S T L E
POLITICAL ECONOMIC SOCIAL ENVIRONMENTAL
TECHNOLOGY LEGAL

Low barrier Increase in

investments by Cultural Mobile Financial Energy
from
Government to people. Diversity banking Resolution Management.
open a bank. Post Educational products to and SEMSP
Demonetization Deposit
Reduction in level serve Solar ATM’s
and GST Insurance
cost in opening economic better.
a bank as Payments Bill -which
conditions are
compared to becoming bank help in
before. normal. decreasing
NPA
SWOT Analysis

Strengths Weaknesses

S •

•
Comprehensive Cash Management
System
Innovative Financial Products and diverse
categories
Successful Advertisement and
Marketing Strategy
•
•
•
•
Late entrant to the market
Low rural penetration
Curbing Out of operational and
cultural differences of ING Vysya
and Kotak
W
SWOT
Analysis
Opportunities Threats

O •

•
•
•
Increased RBI and Government
Support
International Banking
Affordable Housing Schemes
MSME Sector funding
•
•
•
Economic Slowdown
Highly Competitive Market
Growing NPAs T
 There is a very low barrier to entry in banking
Bargaining power of sector as the government policies are
consumers are high as Potential Entry supportive to open new banks.20 new banks
consumers of Kotak Of New come into existence in last five years itself.
Mahindra bank have Competitors
many options in market. LOW
For example consumers
can easily get a loan from Bargaining RIVALRY AMONG
Bajaj Finserv so Kotak COMPETITORS Bargaining power of
Mahindra bank has to be
Power Of There is INTENSE Bargaining Power suppliers is from
more attractive in their Customers competition between Of Suppliers moderate to high as
them due to low switching MODERATE TO HIGH customers can
offerings to retain their HIGH cost between competitors.
customers choose from
multiple banks as
Potential different banks offer
different Interest
Major revenue model of Banking sector has Development
rates to acquire
strong threats of substitutes from products like e Of Substitute customers. But the
wallets, Mutual funds, Hedge Funds etc. Various Products basic services
payments and processing transfer services such HIGH offered by most of
as Paytm, Mobiwik have started offering the banks is
products which was previously offered by banks. homogenous.
 SPACE Matrix

FINANCIAL STRENGTH RATING ENVIRONMENTAL STABILITY RATING

CONSERVATIVE FS AGGRESSIVE RETURN ON ASSET 3 INFLATION RATE -3
+6 LEVARAGE/ DEBT 2 TECHNOLOGICAL CHANGES -2
+5 NET INCOME 4 COMPETETIVE PRESSURE -4
+4
EPS 4 BARRIERS OF ENTRY -2
+3
NET PROFIT MARGIN 3 BANKING POLICIES -3
+2
TOTAL 3.2 TOTAL -2.8
+1

CA IS INDUSTRY STRENGTH RATING COMPETITIVE ADVANTAGE RATING

-6 -5 -4 -3 -2 -1 -1 +1 +2 +3 +4 +5 +6 GROWTH POTENTIAL 4 MARKET SHARE -1
-2
FINANCIAL STABILITY 3 SERVICE QUALITY -4
EASE OF ENTRY IN THE
-3 3 CUSTOMER LOYALTY -3
INDUSTRY
-4 TECHNOLOGICAL
RESOURCE UTILISATION 4 -4
DEFENSIVE -5 COMPETITIVE KNOWLEDGE
-6 PROFIT POTENTIAL 4 ONLINE NETWORK/ ATMS -2
ES TOTAL 3.6 TOTAL -2.8
TOTAL Y AXIS SCORE 0.4 TOTAL X AXIS SCORE 0.8
S.No Opportunity Weight Ratings Weighted Score
1 Introducing New Products In The Market 0.1 4 0.4
2 Involved In Successful Joint Venture 0.08 4 0.32
3 Services Offered To The Customers 0.06 3 0.18 EFE MATRIX
4 Efficiency Of Marketing Mix 0.02 2 0.04 INFERENCES
5 Customer Retention Rate 0.1 3 0.3 Company is in a
6 How Accessible Is The Bank To The Customer 0.08 2 0.16 strong position
7 Identifying The Demands Of The Customers 0.06 3 0.18 though it can impact
8 Response Rate For Complaints 0.1 4 0.4
its marketing to
Threats
focus more on rural
9 Threats From E-wallets And E-payments 0.1 4 0.4
10 Effect Of Government Policies 0.08 4 0.32 market, accessibility
11 Fluctuating Interest Rates 0.1 3 0.3 of banks.
Keeping Pace With The Technology
13 0.1 3 0.3
Improvements
14 Effect Of Inflation 0.02 3 0.06
1 2.96
 Kotak
State Bank of
CPM Matrix Mahindra HDFC Bank
India
Bank
Critical Success Factors Weight Rating Score Rating Score Rating Score
Brand Reputation 0.12 3 0.36 3 0.36 4 0.48 INFERENCES
Financial Position 0.1 3 0.3 2 0.2 4 0.4 Company though
Brand Awareness 0.09 3 0.27 4 0.36 4 0.36 have been compared
Successful New Product launches 0.08 4 0.32 3 0.24 4 0.32 to top performers in
Resources and Capabilities 0.08 3 0.24 4 0.32 4 0.32 the Public and
Range of Products 0.08 3 0.24 3 0.24 4 0.32 Private Sector Banks,
Advertising 0.08 3 0.24 3 0.24 3 0.24 yet it has to improve
Strong online presence 0.07 3 0.21 3 0.21 4 0.28 on various factors
Branches and Presence 0.06 2 0.12 4 0.24 4 0.24 like branches and
Customer Retention 0.05 3 0.15 4 0.2 4 0.2 presence, market
Prices and charges 0.05 3 0.15 3 0.15 3 0.15 share.
Sales per Employee 0.04 2 0.08 3 0.12 4 0.16
Market Share 0.1 2 0.2 4 0.4 3 0.3
Total 1 2.88 3.28 3.77
 ANNUAL REPORT
ANALYSIS
• KEY RATIOS
COMPANY COMPANY • INDUSTRY ANALYSIS FUTURE STARTEGIES
OVERVIEW ANALYSIS • DIRECTOR’S REPORT
ANALYSIS
 Financial Analysis

98.69

90.53
86.04

85.64
80.38

76.7
65.24
56.78
52.33

52.22

38.63
29.18
20.99

20.27
19.27
18.53

18.09
17.39

17.07
16.83
16.77

13.17
13.15
13.11

12.69
14.6
5.97

43.49%

39.40%

36.60%
10.46%

6.2
3.27
7.89%
6.90%
2.59%

1.29%

1.52%
6
48%

47%
44%

KOTAK MAHINDRA SBI HDFC ICICI BOB YES BANK

CREDIT TO DEPOSIT RATIO 86.04 80.38 85.64 98.69 65.24 90.53
CAPOTAL ADEQUACY RATIO 16.77 13.11 14.6 17.39 13.17 17.07
NET PROFIT MARGIN 19.27 5.97 20.99 18.09 3.27 20.27
EPS 18.53 13.15 56.78 16.83 6 76.7
GNPA 2.59% 6.90% 1.29% 7.89% 10.46% 1.52%
CASA RATIO 44% 43.49% 48% 47% 39.40% 36.60%
P/E RATIO 52.33 52.22 29.18 12.69 38.63 6.2
Highlights From Director’s Report

05 This is a sample text.

Company is
04 This is a sample text.
working towards
financial inclusion
03 This is a sample text.
of Rural Areas
through its
02 This is a sample text. program “Bharat”
 FUTURE
STRATEGIES
• INTENSIVE
COMPANY COMPANY ANNUAL REPORT STRATEGIES
OVERVIEW ANALYSIS ANALYSIS • DIVERSIFICATION
STRATEGIES
 AWARNESS CYBER
CAMPAIGN FRAUD CYBER FRAUD
• Robust preventive mechanism for cyber
Frauds.
• Evolving cyber threats can affect the Kotak
Digital Focus.

AWARNESS
New set of Marketing Mix to
make their brand more visible in
markets
SEGMENTATION
BETTER SEGMENTATION
• Specific Products for Women
• Diversify customer base from
metro to Tier-2 cities and rural
markets.
BETTER
MERGE SWIFT AND CORE
MERGE
SWIFT AND • The isolation of SWIFT from the
CORE CBS enables the transactions to
go undetected.
• The risks arising from the
potential malicious use of the
SWIFT infrastructure.
HAPPY LEARNING
OPEN FOR Q&A