Kotak Mahindra Bank

A REPORT ON COMPARATIVE ANALYSIS OF RETAIL TRADE SALES BY AARTI NAINWANI 09BS0000013 KOTAK MAHINDRA BANK A REPORT ON COMPARATIVE ANALYSIS OF RETAIL TRADE SALES BY AARTI NAINWANI 09BS0000013 KOTAK MAHINDRA BANK A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF MBA PROGRAM OF ICFAI UNIVERSITY, DEHRADUN DISTRIBUTION LIST: DATE OF SUBMISSION: 15TH OF MAY 2010 DECLARATION I Aarti Nainwani, here by declared that the project entitled comparative analysis of retail trade sales "which is being submitted in partial fulfillment of the requirements for the awards of degree from the ICFAI Business School is an own record carried out by me under the supervision of Mrs. Sejal Desai & Mr. Nikunj Saraiya Associate Vice President and Senior Manager, (KOTAK BANK) The matter embodied in this project has not been submitted so far for the award of any degree or diploma. ACKNOLEDGEMENT The special thanks goes to my helpful supervisor Mr. prof. Wag. The Supervision & support that he gave truly help the progression & smoothness of internship program. The co-operation is much indeed appreciated. My grateful thanks also go to both Mrs. Segal Desai (U.P) & Mr. Nikunj. Samaya. A big conclusion from both of you during these 14 weeks is very great indeed. TABLE OF CONTENTS Declaration Acknowledgement EXECUTIVE SUMMARY History of Banking Banking Systems in India Kotak Mahindra Bank Objective Reserve Bank of India Hierarchy of RBI Competitors MAJOR TRADE PRODUCTS PROVIDED BY KOTAK MAHINDRA BANK LETTER OF CREDIT Graphs Findings CONCLUSIONS & RECOMMENDATIONS References Annexure QUESTIONNAIRE EXECUTIVE SUMMARY The service industry is one of the fastest growing sectors in India today. Tlie upcoming sectors, which are really showing the graph towards upwards, are Telecom, Banking, and Insurance. These sectors really have a lot of responsibility towards the economy. Main focus of this report is based on of the COMPARATIVE ANALYSIS OF RETAIL TRADE SALES Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to lite insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The project report gives an insight about the trade products of Kotak Mahindra bank and throws the lights upon the SWOT (Strengths, weakness, opportunities, threats) analysis of bank. HISTORY OF BANKING How did banking originate? What activity resulted in Banking, as know it today? To answer these questions it is necessary to step back into history – to several thousands of years and study its origins. Barter Man was, in the dawn of history, simple and self- sufficient. He lived in caves, killed animals when hungry and he had no other wants. As time passed, men began living in villages and started to till the ground. Often the produce of a farmer’s fields was more that he required. Similarly, a fisherman often caught more family required. In the ideal situation, the farmer would exchange his produce for fish with the fisherman. This exchange is known as barter. And in the ideal world they would both be content. The ideal situation, the farmer would exchange his produce for fish with the fisherman. This exchange is known as barter. And in the ideal world they would both be content. However, a complication could and would arise if the farmer did not require or want fish. If the farmer required a plough and the smith requires steel there would be tremendous and horrendous difficulty in matching those that individuals had with that which they needed. And it was on account of this difficulty of meeting needs that the barter system surrendered to money. Money Money was created or rather born to reduce the value the items people had to a common denominator to facilitate exchange of products to satisfy needs. The Fisherman would sell his fish as would the farmer for money. The farmer would then armed with the money he has in hand purchase a plough. The fisherman with the money he received, would buy the food he needs for his family. The earliest form of money was bones on which marks were made to distinguish between values. Metals then began to be used – the most popular being gold, silver and bronze. As men began to travel from country to country to exchange goods and to trade, banking was born. The term money is derived from the temple of “Juno Moneta” Money he has received, would buy the food he needs for his family. The earliest form of money was bones on which marks were made to distinguish between values. Metals then began to be used – the most popular being gold, silver and bronze. Symbols, sizes and signs on these differed from time to time and from goods and to trade, banking was born. The term money is derived from the temple of “Juno Moneta” which was used by the Romans as a mint for their coins. BANKING Banks were born to facilitate trade – to lend monies to purchase goods, to store monies and to change currencies. Banking began thousands of years ago. The Assyrians, exchanging foreign coins and making loans – mainly in connection with trade. Temples such as those of Ephesus and Delphi were Greek banking institutions. The Romans did not have State Banking but had minute regulations regarding private banks. These were calculated to create utmost confidence in the system. Ancient Rome had two types of bankers – those who made loans and those who exchanged foreign monies. The term “bank” is derived from the Italian word “banco” which means bench. The early bankers, the Jews of Lombard, transacted their business at benches in the market place and later in inns and taverns. In those days if a banker failed, his “bankco” or bench was broken, hence the term “bankrupt” Another opinion is that the term “bank” evolved from the German word “back” meaning a joint stock fund which was Italianised into “banco” As many of these inns/taverns were by the signs they had such as eagle, crossed swords etc. BANKING SYSTEM IN INDIA The Banking System in India consists of: Reserve Bank Development Banks Public Sector Bank. Foreign Banks Private Sector Banks Cooperative Banks Regional Rural Banks The Reserve Bank of India The Reserve Bank of India is the Central Bank of the Country and came into being by the Reserve Bank of India Act. 1934. It was nationalized in 1948. The Bank that issues and regulates the issue of currency in India The banker to the Government of India and the State governments. It manages the public debt. It has obligation to transact the banking business of the Central Government. It undertakes to accept money on behalf of the Government and make payment on its behalf. The banker’s bank. Commercial banks maintain their current account with the Reserve Bank of India. The bank the manages the volume of credit created by the commercial banks to ensure price stability. The bank that manages the external value of the currency (Indian Rupee) The lender of Last Resort. It will lend to banks in trouble. Development Banks These were set up to five long term finance for the development of the country. These are the Industrial Finance Corporation of India and the Industrial Development Bank of India, The Industrial Reconstruction Bank of India and the National Bank for bank of Industrial Bank of India and the National Bank for Agriculture and Rural Development. A former development bank, the Industrial Credit and Investment Corporation of India Ltd. By a reverse merger in 2002, became a normal commercial bank. It is expected that the other development banks, having outlived their utility would also be either converted to commercial banks or merged with commercial banks. PUBLIC SECTOR BANKS These are banks which the Government either owns or has majority stake in The largest is the state Bank of India, which was formed by the merger of the Presidency Banks – the Bank of Bengal, the Bank of Bombay and the Bank Madras in 1921. It was then Imperial Bank. It was nationalized or associates. The other nationalized banks came into being on July 19, 1969 when Mrs. Gandhi’s Government nationalized fourteen banks that had deposits of Rs. 50 Crores or more. On April 15, 1980, six more banks having demand and time liabilities of not less than Rs. 200 Crores were nationalized. This was done to take banking to the villages and serve the developmental needs of all sectors of the economy. Foreign Banks These are branches of banks incorporated outside India. The large ones that have been operating in for many years are Standard Chartered Bank. Citibank. American Express bank. ABN Amro. Paribas and hong Kong and Shanghai Banking Corporation. In 1995/96 many other foreign banks (optimistic in view of India’s liberalization) opened branches in India. However, after banking began to become increasingly competitive and margins began to squeeze coupled with large non-performing assets, many banks closed their branches. These include Dresdner Bank, Comerz bank, KBC Bank and commercial Bank of Siam. Private Sector Banks These banks are not government owned or controlled. Their shares are freely traded in the Stock Markets. These may be divided into: These may be divided into: Old Private Sector Banks such Federal Bank, Dhanalakshmi Bank, Catholic Cyrian Bank New Generation Banks such as HDFC Bank, IDBI Bank, UTI Bank and ICICI Bank. Those have permitted to open provided they had a capital of Rs. 100 Crores. Cooperative Banks Cooperative Banks are those that created by a group of individuals to support either a community or a religious group. They operate in metropolitan, urban and semi urban centers to cater to the needs of small borrowers.

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