·t • • •.

iQi~
taliza.tion~·· C . .
L
•· ;a . At , .

~
,. kotak
, . . j 1--, ~
I ~1 1
ll,,' • .__; ) 0

Ko a · , a.~Jndra Bank Limited, Dur,ga ~ursery

.. ,

•ill!
. ·!t ,i-~,; .
. i
.,;;,,,.,,. • r
, _· _· ""Branch, Udaipur_. · -.
. ~I•

For
,' . -t
-
l,,

:·, ~ : -~-..i=s: ~ . .
Submitted in partialfulfillmentf9rtheAward ofDegreeof
· <·=: /JMaster of Business Administration
(CMAT) .

FACULTY OF MANAGEMENT STUDIES

. MOHAN LAL SUKHADIA UNIVERSITY,
UDAIPUR

Submitted to' Submitted by

Mrs. Puneet Shekhawat, Daksha Singh Shekhawat
Branch Manger Kotak Mahindra Bank ltd, MBA Ill SEM
~.,. Durga Nursery,Udaipur
"
 A
Summer Project Report
on

Digitalization in KMBL
At

~ ~ ~ ~rn8ank

Kotak Mahindra Bank Limited, Durga Nursery

Branch, Udaipur
For

Submitted in partialfulfillmentfortheAward of Degree of

Master of Business Administration
(CMAT)

FACULTY OF MANAGEMENT STUDIES MOHAN LAL

SUKHADIA UNIVERSITY, UDAIPUR

Submitted to Submitted by
Mrs. Puneet Shekhawat, Daksha Singh Shekhawat
Branch Manger Kotak Mahindra Bank ltd, MBA IIISEM
Durga Nursery,Udaipur
 e kotak Kotak Mahindra Bank

November 30, 2018

To Whomsoever It May Concern

internship with Kotak

I1 s is to certify that Daksha Singh Shekhawat has completed her
4ahindra Bank Ltd., for the period July 05, 2018 to August 18, 2018.

and has submitted

r)~e has completed the project title "Finance /Banking-Dizitalisation in KMBL"
·
the report.

We wish her all the best in her futu re endeavors.

For Kotak Mahind ra Bank Ltd.

~
irl ins
MAssoci ate Vice President-Human Resources

Kotak Mahindra Bank Ltd.

CIN: L65110MH1985PLC038137
ReglSlered Office·
Kotak lnfinit,, Building No 21 ,
27 BKC, C 27, G Blod:,
Zone 4, 2nd Floo<. lnfinny Park.
T ,91 22 66056825 Sandra Kurla Complex,
Otf Western Express H,ghway.
F +91 22 672 59071 Sandra (E). Mumbai 400051,
Gene,al AK Vaidya Marg, Malad (East),
www kotak.com Maharashtra, India.
Mumbd,. Maharashtra 400097 India.

HR/2018I 102 3£;56

 DECLARATION

I hereby declare that the project report entitled "A Summer Pn,jt'i'l 1tep111l 1111I>i~i111li111th111111
Kotak Mahindra Bank Limited,'' under the guiclnncc of Mrs. Punt>t•I Shdd111w11I, (11111111'11
Manger Kotak Mahindra Bank Ltd). s11bmit1ed in parliolji1(/;J/111c11t <ii thl' l'l:q11ir·1•1111•11t li11·
the award of degree of Master of Business Administrotinn, Fnculty ol' M 111111µl'tnl'11t S111dks,
Udaipur. It is my original work and the same hns not been s11bm itted for th1.: tm nnl 111 1111V

degree, diploma, fellowship or other similar titles or pri1es I() !Ill) oth1·r nrgnn i,at il)11111·

university by any other person.

Daksha Singh Shekhawat

 PIU,~FA C'E

P11,fClt ,., Vl'IY i111rmta11t fo1 hcµi1111cr'i to 11a1n a pr<1ctical r.n<,wlcdgc about
,,,~:11ll/at1011 and thl! indw,t1y .lkci'iion making i'i .i fundamental an<,ut ,,rgi,nl/.
at,,m and
indu-.tr) . lkci~ion rcgardi11g that wh,ll you wan t lo do, how you want 1,, do, -Nhat
tool!, and
techniques be u~cd for the comp letion of thc project.

13asicnlly when we arc playing with electronics in every part of life, i used it in
my
project which represent the role of Di gita l Bankin g services provided by the Kotak
Mahindra
Bank in customer awareness and sati sfaction .

This report has been prepared after collecting th e data from primary source
and
secondary source. I had deeply analyzed the customer awareness and satisfaction
regarding
Digital Banking Services provided by Kotak Mahindra Bank and successfully complet
ed the
data interpretation and analysis . The main objective of the study is to find out the
process to
provide Digital Banking Services to the customers in the better way by the bank.
 AC~KNlJWLE'/JGEMENT

It ,., thl' fi.1rturn.: to find rh c opportunity to express my deep sense o f gratitud <.: to all
pcl1pk "lw heired me wi th their guidance and assistance, without which the proj ect would
,wt be po:-sible.

First I would like to extend my heart-felt gratitude and respect, to my parents, who have
always been a tremendous source of encouragement and inspiration for me.

I wou ld like my thanks to Mrs. Puneet Shekhawat, BM Kotak Mahindra Bank ltd. For
giving the precious time, incessant encouragement and guidance to make the project a
success. She has been instrumental in shaping my opinions about the task at hand by holding
out fruitful and result oriented discussion supported by constructive criticism.

I would pay my sincere regard to Dr. Anil Kothari, Director, Dean , Faculty of ·
Management Studies, MLSU, Udaipur for constantly encouraging me during training period
. I wo uld pay my sincere regard to entire faculty of management studies fraternity to have
given me the opportunity to work with Kotak Mahindra Bank Ltd;

I would also Iike to extend my sincere thanks to all the staff of bank and my friends for
their moral support and encouragement given to me.

Daksha Singh Shekhawat

 r~J)J •,X

,. l'n• l,ll'l'

,,. \r~tl\1 '\ lt-Jgmcnt

► I \CClll i, C ~llllllll ill)

,,. (\ ,mpan) profile 4
,, Introduction to topic 14

),' Digital pl:.itfonn for customers 22

• Internet banking 22

• Mobile banking 30

• Smartphone application 37

• Whatsapp Banking 38

• SMS Banking 40

• USSD 42

► Research methodology 45

► Analysis and interpretation 54

► Swet analysis 69
,.,, Facts and findings 71

► Conclusions 73
,.' Suggestions 75
,. Questionnaire 76
,. Bibliography 79
 INTRODUCTION:
EXECUTIVE SUMMARY
OF THE PROJECT
 l11{ro,/11ctia11: /',\('CHtil'(' SUllllll(lf,V of tit<: l)f()j{'(' /

f .H'rnlil't' Summary

Digitization is not an option for banking industry, rather it is inevitable becau<,e every
industry is being digitized and banking sector is no exception. 'Jhere is always a ' firr,t mover
advantage' in an upcoming sector. The idea to help each other "banking business" means
the business of receiving money on current or deposit account, paying and collecting cheque
drawn by or paid in by customers, the making of advances to customers.

The Kotak Mahindra Bank Limited commonly known by its acronym, KMBL is one
oflndia's leading private sector banks and 2nd largest Bank in overal l ratings.

In this project or research, the main contention is to highlight the Digitalization in

KMBL Bank. The objective of this project is to study the changing preference of consumer
towards organized digitalization and to analyze customer awarenes s and satisfaction towards
products and services offered by bank in digital banking and to share and create knowledge
around the area of wealth management, develop better understanding of this area and help
each other find better opportunities in the area of wealth management.

This research will go through formulating the objective of the study, process of data
collect!on, usage of appropriate sampling plan, processing and analysis of data, reporting the
findings.

The research is explorative in nature, where it uses questionnaire, schedule and oral
interview . Study will be analytical also that includes survey, and fact findin g enquiries . Since
no prior assumption was made regarding the consumers perception even no hypothesis was
formulated.

Page 12
 • ll1t11J11tll_! Ill'\ 1\,1 \\ I • •
11
· ''1 11l <; 111111111 in 1,tfl-iin~•
1
dit 11, 11lt '" d1 ., 1111111,,,,,. 1, ., lllH P•n1h1Lh .ind hc1.:~1usc ,,t that it""""' very
' •l \\l'l'n 11111 111 n<lu t I
• I 1111•,·1 \ ' ll'-l\•1111.:n, Hild I L ,111, ProduL\', ot the compctit,,rs.
1
'" " Ptuli\. I C.:'-.pn11,
\IIIC'-.111111., w11, vc.:ryc111., were
tlirlicult. too husy persc,ns that to get their tirnc and ••icw

• ,,.11.,,tl\ 11) n l lh c industry wus uho a very Ir l r h

11 ll..'il'-. lll \.' en, l l'C tl y. equcn actor w ich wa,; very imP<">rtant to

•
I\• cu «' vc, cd I\,' the pruj eet wh; te do; n g job a Iso was very lacge and ;, was very d;ffocuh
tn co, re lat e.: two di ffcrcnl customers/respondents views in a one.

• Fvc,·y Vinun e;a l customer has h; s/h« own need and acco,ding to the «qu;,ements of the
customer product c ustom izalion was not possible.

• Husicu ll y in this proj ect I analyzed that- Customer awareness and satisfaction tav.,arcl3
clipJtalba11king in KMBL bank.
• Limi ta ti o ns of thi s research are given time is lesser than required; cost is a\so a
limita ti o n because while giving the feedback they might not take the survey or
questionnaires serious ly and research is only confined to Udaipur city.

Page\ 3
COMPANY
PROFILE

Page J 4
 AJlRL l> 1..\A. : all ,1(2i>«c-

11h' d \)fllt 1c11 t o1· ,111

\\.\'lh\lllh' di.' \ . y country depends 0 11 1he extent to whid1 JI'\
lin.'\n,1.,I ,, , t,'tn ,tl1.:i.:nth• ,·rnd ''f"',
,cc·t·tvc,1Y 11 10 t)I·111cs
· :ind al locates resources. ·1here arc a
11111· 11'," ,,, 1,,ml._, and financial institutions that perform this runction; one or them i~ the
, ,'t,tl.. \ t,ihindra Ban"-.

l'hr (1l1jl~fh cs of banks arc:

• t\, establish as an institution for maximizing profits and to conduct overall economic
a,'lt\ ities.
• r,, -::0llect ~\ ings or idle money from the public at a lower rate of interests and lend
these public money at a higher rate of interests.
• fo create propensity of savings amongst the people.
• fo motiYate people for investing money with a view to bringing solvency in them
• To create money against money as an alternative for enhancing supply of money. To
build up capital through savings.
• fo e:-.pedite invesnnents.
• To e:-.tend services to the customers.
• To maintain economic stability by means ofcontrolling money market.
• To extend co-operation and advices to the Govt. on economic issues.
• To assist the Govt. for trade& business and socio-economic development.
• To issue and control notes and curTency as a central bank.
• To maintain and control exchange rates as a central bank.

Vision of KMBL Bank

• The Global Indian Financial Services Brand

·11 enJ·oy the benefits of dealing with a global Indian brand that
Our customers wt
· d and delivers customised pragmatic solutions across multiple
best understands t heir nee s

platforms.
. Id class Indian financial services group. Our technology and best
We are a wor ~age 1 ::,
 practit:cs arc bench-ma' 1•kc'd a1ong 111tcrnat1onal
• • •
lrncs while our understanding of'
customers will be uniquely Indian.

We arc more than a reposr·to,y .

. of our customers , savrngs. We, the group, are a
single window to every financial service in a customer's universe.

• The Most Preferred Employer in Financial Services

· · of enterprise
A culture of empowe rmen t an d a sprrrt · minds with an
· attracts bright
entrepreneuri~l streak to join us and build long-term careers with us.

Working with a home grown professionally managed ~ompany, which has

benefited from partnerships with international leaders, gives our people a perspective
that is uni versa! as well as unique.

• The Most Trusted Financial Services Company

We have created an ethos of trust across all our constituents. Adhering to high
standards of compliance and corporate governance is an integral part of building trust

Subsidiaries-

The following are the subsidiaries of KMBL.

I. Kotak Mahindra Prime Limited

Kotak Mahindra Prime Ltd is among India's largest dedicated passenger vehicle
finance companies. Kotak Mahindra Prime offers loans for the entire range of passenger
cars, multi-utility vehicles and pre-owned cars. Also on offer are inventory funding and
infrastructure funding to car dealers with strategic arrangements via various car
manufacturers in rndia as their preferred financier.

2. Kotak Securities Limited

Kotak Securities is one of the largest broking houses in India with a wide
geographical reach. Kotak Securities operations include stock broking and distribution
of various financial products including private and secondary placement of debt, equity

and mutual funds.

Page 16
 ia
11,:c 111,. cscmc nt ban t in Ind
g t t,.:; \1( C ) ,._ ., lull -se n
1-.: o tnl. Ill\ cs1nwn1 ll.111l.111 m esti c nnd
ry solu ti o ns to lead in g d o
l,1p1t.il mu rkc t un<l nd\. i<-o
o flcn ng u "1d l· ,111tl' 1,1 ies.
, an<l gov ern me nt com pan
,. t,,1111.,. lina nci al in., titu cion
mul1111:i11,,n.1f C< rp..,r.1ti,,n
1

ran cc ( <'m rall \ Limited

I 1-.. ,,1.11. :\l,1 hind r.1 I 1lc ln,u
wn as Kotak
ahi ndr a l ile ln ~urn nce Co mpany Limited (ro rm erly kno
t.... 01a l-. \l
a I 00% subsidiary ot' Ko tak
Ins urance Ltd .) has become
\l ahindrn Old l\tutual Life
ene ct from 13th Oc tob er 20 17.
\l ahindrn Bani-.. Lim ited \\ ith

Insurance Co mp any Limited

5. Kotal-. Mahindra General
sub sid iary of Kotak
Ma hin dra Ge ner al Ins ura nce Co mp any Ltd. is a I 00%
Ko tak l
India. Kotak Ma hin dra Genera
hin dra Ban k Ltd ., one of the fastest gro win g banks in
Ma
e ins ura nce needs
any Ltd . wa s esta blis hed to ser vic e the gro win g non -lif
lns ura nce Co mp
qua lity & innovation . Th e
em erg ing Ind ia, em pha siz ing on cus tom er ser vic e,
of an es off erin g an
er to a wid e ran ge of cus tom er seg me nt & geo gra phi
com pan y aim s to cat
, etc.
pro duc ts like Motor, He alth
arr ay of non -lif e ins ura nce

nts Lim ited

6. Ko tak Ma hin dra Inv est me

Ko tak Ma hin dra

Inv est me nts Lim ited (KM IL) is a 100% sub sid iar y of
Ko tak Ma hin dra
ing aga ins t sec uri ties ,
e Co mp any is into pri ma ry bus ine sse s of Fin anc
Ba nk Ltd . Th
anc e and Str ate gic
al Est ate Sec tor , Co rpo rat e & oth er stru ctu red Fin
Len din g to Re

rnve stm ent s.

nag em ent Co . Lim ited
7. Ko tak Ma hin dra As set Ma
ass et ma nag er of
dra As set Ma nag em ent Co mp any Lim ite d is the
Ko tak Ma hin
em ent Co mp any Lim ite d
hin dra Mu tua l Fun d. Ko tak Ma hin dra As set Ma nag
Ko tak Ma
es tha t are des ign ed
bou que t of ass et ma nag em ent pro duc ts and ser vic
off ers a com ple te
ry typ e of inv est or.
urn pro file s of eac h and eve
to sui t the div ers e ris k ret

Co mp any Lim ite d

8. Ko tak Ma hin dra Tru ste e

Page\ 7
 l\t l I M 1llhut, Im 1
Mu111,I I 1111LI

I> h.\'1111 . Mnlt111d o l\, ,1111 I w,d I r,1111r I

l\t1t11I, •\1 r, I,1111 Irn 1'1" ~"'" I 1111d I irn,tcd (V.Ml'I /,) • ,t>sid ty f ~~ i

,, th111d1 • ,\\;\l'f /\1n11,11L)t1· 1111 ,,, c " 111 O'M AM( J

' • " Wl'l't ,ppomted a, a Jier: f- , rl
Mn,111gl'I <111 ~1) h,• 11 H . I' 111
· " ·111 " 1"'" 11<i..:~ 11 1:11,,,y ,,,,d I J vcfrlprncnt Aulhmn~ (Pf PJ,A

Ill, 1\111,,k f\fohindr;1 (l111~111,1111,1uil) I 1111 i1 •d

·1hi ~ , 11h-,,dio1 y ol Ko111k Mal1111dr:i ll1111k Ud i11 rc~i-.tcrc,f with the f mancra
~wn IL' L'" ( ' 0111111 i:-..,io11 Mau, it iu .,, KM 11 , ha <, ;1 rcgi'>lcrcd ,,ff ice in i,fauritius and a
n:prr-,r111a1iw onicc in /\bu Dhabi.

11. Kota~ Mahindra {UK) Limilcd

KMUK , a I00% subsidiary of Kolak (the parent company). ,~ ,me of the first
firms of Indian origin to be authorized and regulated by the r inancial Conduct Authorit11,
in the Uni ted Kingdom.

12. Kotak Mahindra Inc.

This subsidiary of Kolak Mahindra Bank Ltd is regulated by the Securities and
Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) in
the United States. It offers investors in US, an opportunity to invest in India through a
range of India specific funds and through facilitating institutional trades through Kotak
Securities Limited. KM Inc has its registered office in Delaware and principal business

office in New York.

13. Kotak Mahindra Asset Mana ,ement Sin ra ore Ptc Limited

KMAMS, a I00% subsidiary of Kotak (the parent company), is incorporated in

Singapore and serves as the international asset management arm or the Kotak group.
KMAMS is authorised and regulated in Singapore by the Money Authority of Singapore
and holds a Capital Markets Lict.:nsc to engage in fund management activities.

Page 1·a
 L111111 I

n, (0111 1 IO) 1
1!11 rq I I rut "'"" r,11 { • I ff

I•) 1111 111lrr. h) lrw.~ ,,J ll1t; IH ~I\

Nl,11 Hr:1;11IC'11t l11d1fi11 1 11,111111t 1, 1, vung u, 1, 11, M,w,g 1,1 , 1, , lfll t,f 11 i; 1

I~ hi!t 1k 1, t''-111 l'III \d "''"''~I 11n1lul

1-::1 \I I'- 111 lhl' h11 1, 111l \~ ol 111111!llJ'IIJ1' 111HI ,1dV1 !ii11~ ffl11d :11 A<.,U/1.1 rnr 'ill :r.;e!

11.111,~·I} (II) 1'1 I\ 1111• I q11ll y (hJ l(1•;d I 1;f1 il1 (1Jf1ilr,, r, fri,11mc ,md (,f I IA~ ,,r,~,

Ic, "-,,1,11-. ~ 1nh 111d1 .i Tt 11, trn hrp Sr, viu;~ L,11111l(·d

Kolnk M11himl111 '/,u q(;ct, Jijp ,~(;rvie;,c~ l ,itnilcd ~,U-: ;,-; a trrs.tu W (1,,rr.,er.uc
, cntun.· rnritnl runus and rrivulc (;q 11ity l1111d c,. If 11lv, ti<.A-; 11'1;, trw.t.te to,;.,~ pkr ;:z
1rns1s. in which it ussists in S(;flin g up rri vul(; tru•,l•, for high nct w,,r1t1 irtdLJ/1 .:z,, LO
ad1ie, c their succession and financial rlunning.

17 . Kotak Infrastructure Debt Fund Limited

KJDFL. formerly into forcx broking bw,incsc,, was CfJn•1erttd into t.1e
infrastructure debt financing business after approval from RBL 'Jhe regulatory app:rr,al
for registration as a non-banking financial company from RBI has been recehed 1,1 April
2017.

I8. IVY Product Intermediaries Limited

IVY Product Intermediaries Ltd is engaged in marketing and distribution of 1,·arious

financial products/services of the Bank

19. BSS Microfinance Limited

BSS Microfinance Limited is a Business Correspondent of Kotak Mahindra

Bank for providing micro credit products to women belonging to economicall~
disadvantaged sections mainly for income generation activities helping them c.\pand
their micro-enterprises, increasing their household income and impro, ing tht.: overall
quality of lives of their families.

Page 19
 t,11fal\ ~lnhlndt·n Bank Limih-11

lwln~ I\ lahlndrn llank is tlll l11cliu11 pri vate sector bank headquartered
111I\ lumhni, I\ 1:,harn'lhtrn, India. In February 2003, Reserve Bank or India (RBI) issued the
1
h1\'tl\l' 11 l,11t,1k I\ laldnd,·u Fi111111cc Ltd., the group's llagship company, to carry on banking
bu,il1l·~,

11 olfrn, :i wide runge or ba11ki11g products and linancial services for corporate and
11.' ltlil l'USl11111ct'S lhrnugh a variety or delivery channels and specialized subsidiaries in the
urct\', 11r' pc1·~011al li11t111cc, i11vcsl111e11t banking, general insuran ce, life insurance, and wealth
IIHIIH1gc111c11t.

Kotak Muh i11drn Bank has a network of 1,369 branches across 689 locations and
1. I(1.1 A'l'I\ Is in the country (as of' 31 March 2017). In 2018, it is the second largest pri vate
bank in India by market capitalization after HDFC Bank.

In 1985 Uday Kotak established what became an Indian financial services

1:n11gl1Hncrnte. 111 February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's
11:ig.ship crn11pa11y, received a banking licence from the Reserve Bank of India (RBI). With
thi.s, KMFI, became the lirst non-banking finance company in India to be converted into a
trn11k Kotak Mahindrn Bank Limited (Kmb)ltd.

III a study by Brand Finance Banking 500, published in February 2014

by !1a11ker nrngaz ine (from The Financial Times stable), KMBL was ranked 245th among the
world's top 500 banks with brand valuation of around half a billion dollars ($48 I rr.illion)
nnd brand rating of' AA+.

Merger with ING Vysya Bank

111 2015, Kotak Bank acquired ING Vysya Bank in a deal valued at 15,000
crorc (US$2. I billion). With the merger, total employment jumped to almost 40,000, and the
count or branches reached 1261 . Afler the merger, rNG Group, which controlled rNG Vysya
Bunk, owned n 7% share in Kolak Mahindra Bank.

Page j 10
 JljJcltlQJJ ll

• I u~t.

rti<J
-11! fill1 A/ HI ~QS '•I h1ndr1 J,
l 1y,:tfj, d ah In n,11 di¼- untm rn and hire punJ1.1
m na · rnl.rll uf fixl:d dq,o II mobrh,a11 n, financ.m e ,n r cwrtlt
nr,d t,um. rnn!>u1111:1 fi11mw. Ill\ c lmcnt hanl.mg and c.l1cntc;' m mC)' man I mcnr
, f9'JI - An ,,pr,IH ::.11011 \\ a-, made to ~, Bl tor llpprO\ al for selling ur , ~lulll ti f und lru ,I
and nn ao;sct manrtgl mcnl co1111w11) 1 he OL:\\ I) set up Corporate ,\ ,h 1sory ~er. 1i...c
r.ro11p rccci\cd "t'\Cr:il mand:1tcs for ;id\icc on mergers .incl ,1cq111 ~1 1ron , nnd re•
~,rue 1111·i11g - I he < omp:111y\ ncv.l) c~tahli~hcJ f orc.:1gn I xchangc RM: M,in 1gcmcnl
sen 1cc carters to rhc v;i~ t rmtcnl ial demand for prke risk munngc rncnt. I he Comp:iny
cst;.ihlishcd ll<,clt a~ a majm fca,ing :md lmc-r,urchasc wmpany ,111d ,h n ~ourcc ot
finance fell purcha!->crs of auromohib
• 1995 - rhc Company is,ued 4,00.000 - 17% Secured Rcdccnw blc Non-con~crtrblc
Oehenrur<.! of lh 2500 f.!ach including 96000 - 16% NCIJ-. rc~cncd for NRl,llJRR (only
9510 taken-up). Un!:-iubscribcd portion of 90 debentures issued to the public. I hc,c :in:
red<!t.:mablc at par on 7.3.2001 with an option for earl) redemption up to a maximum of
5% of the issue amount every year. - The Comp:in) entered into a joint H.·nturc
agreemenr witJ1 rord Credit International Inc. (FC I), a subsidiary of Ford Motor Cn:<lit
Co .. L SA. It was proposed to finance all non Ford Passenger car~ - Kotak M:.ihinJra
Capiral company became a subsidiary of the Com pan) .
• 1998 - Kotak Mahindra Asset Management Compan) Limited (1-..MAMCL) launched it~
mutual fund schemes in December. - The Com pan) it ,, 01Jld launch ih mutual tunJ ,, ith
mo schr:rnt:s -- KGilt Unit Scheme and KJO Unit Scheme. - Kotal... Mahindra F111<111ce, h

a joint venture with Goldman Sachs.

• 2001 - '/ he Company n:commended a sv,ap ratio of25 share<; of h.MI L for e,er) -..h.trt
ot Pannier ·1radings H hich ha~ a 75 per cent equity ,ral...c in Ko1,1l-.. \ci:unttl'' - 1hl·
Bharnth fJi:lrolcum Corpormion Lid (Bl'CL) Jw, decideJ lo p,trl ,, ,I), ,, 1th KlH.tk

,t,.fohindrn, unc: o1 the lemling domc\lic: li11a11cial wn in:, ru1111M11) , i11 ih l'~Hl\ enit.'nt
Pnge I 11
 I\ I 1lt 11 1tl 111 ll111il I l11tllt d I 1' I11 I /\ I 11 It111
I I111 11 11 11 1 l111111l h l'd 11ft ·
· · lo.iuVl'I , ·
11 'i'1CIHI savi ngs
lt,1111 111 11111111 l, 1,1 ,d /\ l1il11 I
111111
II I
''"" 11111
I IN .
H<irdcr
<, 111111k S1g11 Mo(J 101 < roc;s
IIJ1 ij l111 ~" '' ' "" " f\ l11lil11d111 111111k 1111 vl'll 1-1 11llli11L· 111ohik: hu11k i11 g
arr -Koluk Mahindra
11,1111 111 1111111 •11 loo 1,,, •'t•,,1
• •·11 , 111,
~ ' 11
1· , ·
1 11 y , 1, 11 ,11k Ml1 111,dru ( ,c11crul ln<,urancc ( ompany

I Id l, i,lnk I il'llt•1til l11 1it11111wl' gt114 ll<l>AI nod lo crn11111 l;11cc hi.1, -Kolak M ahindra flank
1,w.i gl\'1•11 ll111111 1 1,11111 1•4 l11 lltL· 1111l0 t,/ I : I

• .llllfl l\l il,11, ~l11l1i'11t1111 111111k 111111 huy.'l (1 . 8 pct sLUkc in Oia111011d Power Infrastructure
I Id l, 1111111 ~l11lil11d111 11111111 L11u111.: hc1-1 l11tcr11utionul Bunking Unit in GIFT City -Kotak
~l1dil11d1 11 111111k p.11111 •1 nvc,· !'½, 011 IUJI nod to CPPIB proposal -ING sells 2.5% stake in
I, 111111, l\rl11ld11d1·11 I 111,1k In,• 1{1-1 1,(153 crorcs

• W 17 •l, 111111, M11ld11d1·u Bunk luu11chcs Kotuk Remit J\adhaar-based Instant Forex
lfr11dll111H'<' S11luf lo11. ·•l<otuk Muhindra Bank launches Kotak 811 Savings Account. -
t,01111, M1tlli11d1·11 Bunk Ltd.has acquired 13,26,75,452 equity shares of Rs. IO each of
l,nd1il\ Molti11tlru Old Muluul Life Insurance Ltd.for a consideration of Rs. 1,292.7 Crore
p11y11hlc in cu1-d1 . -Kotuk M1:1hindra Bank launches Smart Banking 24x7 e-Lobbies. -
l,n11d, M11ld11dru IJunk and Zeta launch Paymint a multi-wallet digital prepaid solution
fo,' s11l1td1.1d crnploycus.

Tht Pn•s(·nt

Toduy, KMBL is counted amongst the leading private sector banks of India,
nd
:1p:trl frnrn cl1:1imi11g the;: distinction of being the 2 top private bank, in overall ratings.
This is lwca11sc or its wide network of 1369 branches across 689 locations, and 2163
/\'/'M1,. /\part from being involved in banking services, the group offers a wide range of
li111111ci11I scrviccs that encompass every sphere of life. From commercial banking, to
stock brnking, 111utual funds, life insurance and investment banking, the group caters to
Ilic divcrsc /inunciul needs or individuals and the corporate sector. The KMBL has a
wide dislribution network through branches and franchisees across India, an
Jntt:nwlional Business Unit at GIFT city, Gujarat, and international offices in London,
New York , Dubai, Abu Dhabi, Mauritius and Singapore ..
INTRODUCTION
· TO TOPIC

Page/ 14
 DlGlTALLSfilON lN l~l llL

DlG lT~L lSAi lON :

Digiti1:1tio11 ks" c,1 m111,1 11I) tliid t11llrnth111 . 14 tltl' 111 ,1l'\",4
1,I I u11v, 1lli1i• 111 11111,111111,11
int0 u difit,1\ ~i.e C,1 1Hplllc1-1~,1d,1l1k) 1~11\lllll. 111 "hk h lhl'
l11IP1111tll lt1111 11 11q1111dlll l 111111 ldl ii
,,r
ni~ result is the r1cr1~SC1llt1li,1 11 till ,,tijl.Tl. iilllll!l'. ~,1u11d .
d11\'llllll' II I. (11 ti l/!lllil (11ri1111ll y 1111
.111Jl0~ signJ l) l1: gener,1li11g a ..;cries ,,r 11u111b t.:r::- 11ml d,-~1·1
llit II tl h1 ,,,IL' •a'I 1d 1111 p1,l11I ~ 1,1
suHr k, .. 111.e ~sult i" calkJ d(d1,,/ 1\'/'t\· ,·c11111t1\111 ,, ,·. 111111L'
'1 \'L'rl 11rn ll v. 11i//,IJ//11/ 1111111i1 1 11,1
ct,~ 0bJl.'\:t. ,md d1tUt1I /tw111. for the sig11ul. 111 11n1dL'l'II p1m·ll n\ tin'
dl1•.lll1,,t1 1111111 111 111 1111
timll 0f t,inJr: numbers. "hich lhcililalc l.'11111pult'I' 111
11L'L'~~1 11 ~1 111nl nll1L'I up,,111111111'1, l,111,
strktl: sp.e,1k.i11g. digiti Ling simpl: 111cun~ 111\.' l.'1111vcrnl1111
11 1' 111 1til11g '111111·1·,, 111111,1il1il 111111 11
numerkJl fom1.1t: the decimal L'I' UII) L1ll1cr 1n11nbcr :.y::-lc111 th1
1I 1•1111 lw ll'll'd lll'ill 1,d, 1

Digitiz.1ti011 is or crm::ial
impL1r1n11LT 111 uuln pn1L'L's1-l11p.• .~ln111p.l' 1111d t1 111111111 l1111l1111,
bo:.iuse it ",1lkrns informalion or ull h.inds in ull lhn11u
l~ lP hl' l'III I lrd wll li 1111· 11111111
ctfo:ien~') and also intermingleu". llnlih.c analog dulu. whkh
lypkttll y 4till Lir:: •11 111W lt1~11 td
quJli~ eJch time it is copied or trnns111illcd. dig.i tal d11t1
1 c1111. i11 tl1l'<11y, hr p1·0111ip,11t1·d
indefinite!: \\ il.h absolu te!) no Lkgrmllllion . !'Iii~ is why ii
i1i u litVlH't•d w11y Pl p1·1•11t1rvl 11/1,
infom1Jti0n for 111,111) organiw tions nround 1h1.: \\t11·ld .

DIGITAL BANKING
Digitul banking circumscribes compo si11.: servk 1.:s deli VL'ml
llVl'I' the Wul'ld Wldl' Wd,
\\hich aim at sen ing bolh bunh.s and consu1111.:rs ns u 111uu ns
ol"pnivldl11g. 11 c1111 vu11h.i11I , liitll lll
and better e:,..,,periencc than lradilional bnnh.in g. Th1.: shill li-0111
1rutlltl11111tl t111d dlp,1111 1 l11111kl 11 p.
is grJdual and should be rallu.:r describ1.:d in degrees or servk
u dl gltl111tlll11 lh1111 llt1'0Up,li 11
categorization into :,cs and no. 11 involves high levels or proc1:
ss 11ul11111 11tl1111 t111d wth b11•1cd
sen ices and nia) include A Pis enabling cross- i11stilulio1111I
s1.:rvk 1: l:llll1tH14illrn, In ddlw ,
banl-.ing products and pro\ idl: transnctions . 11 provides lh1: ubilily
1111· u~1.:1'N111 111·t•w,11 l11111111· iid
data through desl-.tops. mobile services und /\TM scrvk:c:..

Digital bank.i nr. is the di gitiza tion (or 111ovi11g 011li11e) 111'
ull the ln,d lti111111I l11111 kl 111•,
acti\ ities and programs that hisloricull y wen: 011ly uvuilulilc
111 l'll\l11 111 t•n, wlic11 pily ,ll idly 1

inside of a bani-. branch. This includes udivilics like:

 • r,, tt,111:,• l)q1nsi1,. Wilhtlrtl\v11l •s , 1111·•
u ·1·rnns,crs
r

• Chtd.ing Sm in g /\ccoun l MnnogcmcnL

• ,\ ppl) ing ror Financial Products

• l ()1111 Monngcrncnt

• Bill Pay
• Account Services

Consumer preferences have quickly shifted to online and mobile devices, but many
financial organizations have had trouble shifting their onboard'ng
r ·
experiences on 1·rne an d to
smaller screens. '

In addition, until the past few years, banks were not envisioning the tremendous
shift in consumer behavior that occurred as a result of the millennial generation now
become the largest consumers of financial products.

DESCRIPTION

A digital bank represents a virtual process that includes online banking and beyond.
As an end-to-end platform, digital banking must encompass the front end that consumers see,
the back end that bankers see through their servers and admin control panels and the
middleware that connects these nodes. Ultimately, a digital bank should facilitate all
functional levels of banking on all service delivery platforms. In other words, it should have
all the same functions as a head office, branch office, on line service, bank cards, ATM and

point of sale machines.

The reason digital banking is more than just a mobile or online platform is that it
includes middleware solutions. Middleware is software that bridges operating systems or
databases with other applications. Financial industry departments such as risk

management. product development and marketing must also be included in the middle
and back end to truly be considered a complete digital bank. Financial institutions must be at
the forefront of the latest technology to ensure security and compliance with government

regulations.

Page 116
 IIJ b I UH\' lJI JJJt,11 " '" IJANl, 1. ,, ,

1 11 t lll l 1111111,, d l11 11,t ft,,,,, ,H ,1 1, 11 ,ti ,,,, f 1,1 11 , ,w:,I th ti. ,,,Y/J ,, 1J r.arl, ln1 al! jjjlj

111 1 ,, ,I 11t1 w1 ,II " I,, 11111, ,,, 1111,111,, ,, 0111, ,,, 111(11 11i;1,li• , 111 ,I!'" 1111•d In /k(, 1,P r,,wJ
1(11 c ,11 \ 1,11ll1,, Lfil 1tl1,1 111lll /11,d l1, h 11l1,1 y 1111(1111 ftVt''III

11 v ''" ,,,,,,, tht 1,,,, 111u 1.111• ,,~ ,, fi 1,1' ,,,,tu,, 1111,,~lntt MJi/1A0 IN✓ 11, 11,i d ~ ri1w11,
1111 l111jt10 \/ 1111t:11I ,,I l,11 ,,,dl,1111,f /111,/ , , 1 ,111111tt/, ~/t.lJ/11~ In 111-1 1 ;;,1 1 ?l>'>'Jf; lt!!J II) :r,1-,.at

1l , 1111,1, ii 1111 1111,du,, 111,,111111111111·11,I! "'"'" 11,,lt,; 1111 ,,,,,fJfomt,,m 1 1# (),111.:11101,one~" ''"'Vi
1111 111 Ii i du 11t l1 ,, ,,11,1 d 11,v d1,1,1 1,,, 11111, 1;1,, ,,,,,,,. t,11 1111 ',!.Ii ,,, /'" t1 I I II , ,,_,_;,,rn;,., 1 11(;.r
W'',, 1d 11,11 ii 11111u 1i 11 1,w 11 ~1 1111..11 '1 1111,11 1,1,,,,, 1 "11~ 1/1!, 1,,, ,~11111 ,,,~111>'1 t 11 ,11vt»l 1,~.r,i,J,ii.
1

11 11 1111111111111 11,1 l,1111/·ti /11 111,'/1 /11 f:11 ili/111,, ll~111i1,, 1I~ t11at !:11111~~..-t 1~wj 1)fs 1,iti1

11 ,11m·v 1l1111111d1 1 l,1111111 Iii ti, 1, 111111,1 d 1,1/ 11,, lh/1~11111 1,t 'I II,~ 1 /1/1 1.111111,. ~1,::p~~ ~ bi:sh <Jf

, 11 ~111111u 1;11 fi r; l11( 111,11 , wl111 I, 1,111 l,1 11111/11111.I 1111/1 t 11~1,111 1 , ,.l:1ti1>s1~1ip
/'.. ·1fa1,i:ge1nent

(( l<MJ ~o ll w111t I l,11 111111 1 t l1 M 11111~/ l,1, 11,1,·w1,t,.;(I i1J11, 111figit11I hM1!-:ing f>;'.<,tem, 1>111<;.e it
p111vidt t.: 111 t·1 ,11 r. 1111 l,1,11 h 11, 1111 1·1,II; 1,1,1,11,1111111,.:,t,, 1111/11/1!:it 5,;w•..1/)111!;.rr-,.

I lin t It. ,, dt· 1111111d 1111 1,1111 /1, 1;11t/ v,111ihlJ;,J11. / M1tl li,r "'l;,111~s. ,,ptimize.d on
lt111vrn1u,u 111"1 11 111:1 ex 111111 .111,1, 'I Ii~ 1111111-'1;.I /1t'1litl 1t.) U 1 /:/-, pfott,lfm tmnt ends, enabling
pwt:lrn~c dn 11:i1,11 r. h11•a d <,11 11v111l11l,l1; t1;r,l11,, ,l1,µ,; 1,111.,/1 w;, lfl',hil!; dev,<:e'>, with a desktop or
,~11111 11 'I V 111 1! 1,111 1; l11 1,11l1A l1,1 l11111h 111 I11wl l,h fl'tWrltf di;,mand5, they need to keep
lou ,~11,g 1111 1111p11, v 111J!. t1,wt1d lc1.,l1111,l1,µ,,; 1111,t r,11,•mfo~, 11gilit1, ½:1labiHty and efficiency

,WHAT DH)JTAL UANKIN(J MtANS 1'0H HANKS

A •,111dy (011d11<.lcd l11 ?,(/Ji', 11;v1;1d 1;d 11111I 11-71% ,,f hHt11-'.tns <..te potential to improve
u,~l11111l·1 1c l111i1111 1,h1p ll,11,11Y,li diuit:,I l11111vi1Jµ"' 44 1% 'i<.;1.; ii w, ~ mtan5 t.o generate competitive
11dvo11l1tp.l· 12%, 11 1, 1, <;111111111: I /1,1 m:w <.IJl,IJ.1I11 1:1 /1J,,1J1-Ji,;iti,,n, ()nly 16% emphasized the
p,,1rn 1i11l 1111 w 1,I 1;:,vi 11H,.

M11j11r hi'11t'fil11 ,,f tllt{lh,l lisi,ddut{ Ht(;:

, /lwl11n,\ l'//ll'lc111 ·y 11,,11,11ly du diY,it1d p/111/i,1111 1, i1rrpr1,vc i11u;rn(,lio11 with customers and
t1d,vt1 th1,; i1 11(·t d 1, ,,, ,,,c q11i,Jl y, they 111•,11 rm,vidc ,n'-tftod -, l<Jr 111aking internal functions
111111,· di,, irnl , Wlil lc l,111,v. 1, li:, vc licc11 iii tltc fo1dri,nt 11I digital technology at the
u,11•,11111tl' rnd l1,1 dtuulc•,, ll11;y l11,vc 111,t <.11111plct1;ly c111brm:cd all the bcndits of

Page 117
 • r II t 11 t11w ''"' 111 tlw k• y, 1111 l,,111h '" , 111 , q')f',
l'l :u,t,miatcd :Jpplic..a1ic111'> th:11
rq,l t1 11.dw1d,u11 11rn111wl l.tl,,,t , I 111d1111,11:il h:111~ pt o<.c,;1>'lill1' i'i , .,11y,
11
0 '> 1,,w and pr<>nc to
hwn1111 '"'" • · {. • 11di11g 111Mt.11 111•,,,y Iv c 11111p:111y J{clyi11g 1111 people
11
mid p.ipcr aho takc'>
up 11111 1 , • • p.u ,. .ivl11, 11 11111·, 11p • 11i..1"'y mid . , ,,,muc <,, .,11,. l>i1'il:J
1 J platfc,nm can IL1turc
1t:d11 •· 1 11·,1:. tl11 11111d1 Ilic 1y11111!k ti 11I 1111111, q1wlit:11i vc J:Jl:i :rnd fo'iler
rc:,,pom c to market
t" I>""·
flll

• //II Jl'f1,,,,/ 111·, um1y 'I rndif11111:d bank'! fliaf rel y mainly on paper
proc<.!ss ing can have an
,.,,,,, mt1: 111 "P '" tlO'¾,, whid1 rcquir<.!1> r<.!working. Cl1upl
<.!d with Jack of fT integration
bc1wc1,;,11 l1rn11'-h :i11d b:Jc.,k olli<.c p<.!r'iot1n<.!l, thh problem reduces busine
ss efficiency. By
1,1tr1pldy1111) tll 1; v1,;iilic,;;Jti1>n procctis, it'11 ca'iier to implement IT solutio
ns with business
•,<JllwMc, lc:idin ~ h1 1mm: :1ccumte accoun ting. Financial accuracy is
crucial for banks to
v,111ply with govm 1me111 regwlations.

• Jmpm vnl c;_rJJJJJHtl jjlvw. w - Digit.al solutions help manage marke

ting lists, allowing banks
1,, tc1:1,h hn,a,kr m!Jrkcts and build closer relation ships with tech savvy
consumers. CRM
plijff1mn-, can trf.l<.,k CU'ltomcr hhtory and provide quick access to email
and other forms
,,/ 1Jnlin(; communication. lt''ieffcctive for executing customer reward
s p:-ograms that can
imp r11vc 1,,yaJty and satisfaction .

• r ;,,,atr:r 111:J.lity - 'I he U'iC c>f automation can speed up both extern
al and internal processes,
bc1th o1 which ca n improve customer satisfaction. Following the collapse of financial
tniJrkct•, in 2()()~ , lln increa sed emphasis was placed on risk management.
Instead of banks
hiring and training risk management professionals, it's possible for
risk management
1,oltwc:1re t1> detect and respond to market changes more quickly than
even seasoned
rm1lc•,4,ic1nab.

• J,nhrmc:ed .~ec:urfty - All businesses big or small face a growin

g number of cyber threats
Hrnt can di.Image reputations. In February 20 l 6 the Internal Revenue Servic
e announced it
had been hack(;d th(; previous year, as did severa l big tech companies.
Banks can benefit
lri11r1 extra f1tyer'i of "lccurity to protect data.

Page 118
 l.:JilJLH !Jl l)j cit H' JJiw ls..im:
I 1,, d, 1
1· ,,,,, 1111 l,,11,~1> ,,, l•tltJ ,,,,,,!.: d,:,11:11 'hl11t1, 111~ ~ .1111 ',;i'::~'J;;;.J i~~h ,,ifJ -:,e ~
111:q 111 1111p1111 1 ,11 tlwi, /,,, ;,11t_i:,I ;.t:,hility, WMI!.: ,,,,1 ;,If b:11 ,h .11;~ iTJ ::· :,~>; t:J ,: ✓,,z ~,;i;i'.

!11,1111•1'/f It/ 11 111/1;1 ·,1111,, 1111 1.: ,,11/11,; md,itu,,tu1!.:'1IJ t11p1J1 it, 11;,sJ}.~~i,:,i:i~W •,;{1'!;.,~A •.7,•

11111v\.' 111wwd IH 1 1:,d 1. 11d f11, ,;11d :J1Jt,,m:,1i,,,, !.-1111 tJ,, ;;1_1 ,net :,txJ1Jt ~ .• /.,,,:sf:, :i:: ~ !::;--~.

lMl>OJfl AN< ·1~Of Vl<;fl AL HANKIN<✓

I n,,, lmportam·,, 11/ 1·1.,n l11m1•r xp 11rlnu•P, In the tlif(ilal er<vDtY;Jtal te,hrJh✓./7,)' u
11

ti, ,111111/ /('(//ly d11m:w,H hr,w hanA'I tnlr:r uc:t with their cuiftJrru:n Jn jint a /t:1,1 /ear,, ti'.e
/lr11111r:fltl ,wrvtN1,r mrluvtry f/(/ y fJVIJ!v<:d j r ,,m trad1fi1mal hnd,,-and-w1rtar "1pt:ratihm th

,mlmr hi/I 11rl)'m,,n1 and dt,tp11rif,r /11 lhi! <1m<:rY,ing w11r/d 1Jj mr1bile hank.Ing,,
1

2. '/ lw cmcr~cncc 1Jf' col'lf<Jmcr cxpcricn~ a•, a U--ntrnJ WP-,id~~ion for oo.:r.h ~ tl-~;
<,;.te:ite :md execute their c.:,cJmp<.,-titi vc :,trntcgje-,, Cu-,wmer'.- no'II t;'✓aluate th~r 1:r'~:dr.g
exr,el'i1.;t1<.,e in the ccmtcxt CJ f their intcraL·tions ~d relati<Jn>hips ·11ith r:::tai;::r;, 1.--a~::::
cCJmp:mic1, and other tiervice pmvider:,. They want digital lYan~fog tu be a°' ta>:, ~id
1,cwnle<,s a·, ordering an item on/inc (Jr bvoring a flight with a mobile app.

J Ha11l<,'1 HCliCh Village,<;: I lht,,rica/ly, rural poople have not enjoyed banking ser,'ices.
ft \ hard for bank,; to open branches in far-fl ung (;(imers of the country. V/ith
digiri:,,;ation, only a mobile if> <,ufficient fortransae-1icm',. As a resuJt, people from villages
can acces'i c,ami; functionalities as urban pw ple do. Abo, online tr-'dJJsactions ha,.·e
played pivvUtl role in e- commerce.

4, Accc.11.'I From I I omc: 'f he mo<,t import.ant benefit of digitization is that it saves our time.
We 110 longer need to wait in queues for long hours. Almost all banking facilities can be
availed through digital media from home.

5. Co.'lt-Ef1icicnt S()lutions: At the same time, machines can perfonn tasks more cheaplJ
tlrn11 humanc,. Wherea'i <;a/ary of' an employee needs to be hiked annua])y, cost of
coinputation gradually decreases with time. As a result, banks will have larger profits.

6 Othcn,: Curbing the use of' counterfeit notes has been a challenge for years. When
tra,rnictions will go complctdy online, this will be no longer threaten the econom}.

Now, hanks can cac,ily collect focdback from customers. This will help them to
Page 119