A SUMMER TRAINING PROJECT REPORT ON STUDY AND EVALUATION OF BANKING PRODUCTS AND BASIC CONCEPTS OF ONLINE TRADING OF SHARES AT

KOTAK MAHINDRA BANK Ltd. Kotak house, Surat SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF
POST GRADUATE DIPLOMA IN MANAGEMENT (Approved by AICTE, Government of India) ACADEMIC SESSION 2012-2014

Institute for Technology and Management

Under the Kind Guidance of Industry Guide:Ms. Jignesh Raval (Branch Sales Manager) Submitted by Niyati Gandhi PGDM -1621 Faculty Guide: Prof. B.V.R.Murty Deputy Director, ITM GLC

ACKNOWLEDGEMENT
Its a privilege to be associated with Kotak Mahindra Bank Limited, a Kotak Group of companies which has emerged as one of the leading financial conglomerates.

I articulate my sincere gratitude to my project guide Mr. Jignesh Raval (Branch Sales Manager), who has spend his valuable time and guided me throughout the training process in spite of his busy schedule, in shaping my project as well as providing necessary information regarding the project and also for his support in completing the project.

I am very grateful to thank the employees of the kotak Mahindra bank ltd. who have been the source of constant inspiration and sharing valuable suggestions during my banking hours.

I would also like to thank to my Faculty Guide Prof. B.V.R.Murty, Deputy Director, ITM Navi Mumbai, who helped me by giving necessary feedback required for my project work.

DECLARATION
I, NIYATI GANDHI to the best of my knowledge and belief, hereby declare that the project report entitled STUDY AND EVALUATION OF BANKING PRODUCTS AND BASIC CONCEPTS OF ONLINE TRADING OF SHARES is a result of my own work, all facts studied and evaluated presented in this report are prepared by me in the fulfillment of academic requirement. The training is done in Kotak Mahindra Bank Limited, K G Point, Kotak House, Surat-395007, Gujarat for a period of five months, commencing from 2nd January 2013 to 7th June 2013. This project work is submitted to Institute for Technology and Management, Navi Mumbai as well as in Kotak Mahindra Bank Limited. It is not to be used or copied by any person. Written order has to be taken from appropriate authority.

DATE:

Signature

Niyati R.Gandhi

INDEX
SR.NO. PARTICULARS ACKNOWLEDGEMENT DECLARATION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 EXECUTIVE SUMMARY RESEARCH METHADOLOGY INTRODUCTION TO MY PROJECT OBJECTIVE OF THE STUDY SCOPE OF THE STUDY LIMITATIONS OF THE STUDY AN OVERVIEW OF KOTAK MAHINDRA BANK COMPANY PROFILE KOTAKS PRODUCT DETAIL INVETSMENT SERVICES CONVENIENCE BANKING STRATEGIC ALLIANCES FINANCIAL OVERVIEW INTRODUCTION TO KOTAK SECURITIES INTRODUCTION TO CONECPTS OF TRADING TREND LINES CONCLUSION AND RECOMMENDATIONS BIBLIOGRAPHY 1 3 5 5 6 6 8 12 18 31 37 43 47 52 54 65 75 78 PAGE NO.

EXECUTIVE SUMMARY
The project is based on the sales strategies for the Banking products and theoretical concepts of online trading with a special references to KOTAK MAHINDRA BANK.

First and Foremost, the purpose of KOTAK MAHINDRA BANK is to fulfill the needs for investment under one roof. This project shows, the common man has started capital market term like bull and bear explode new time. It gives the detail view of the regulatory framework for the KOTAK MAHINDRA BANK. The focus to shift to various products of KOTAK MAHINDRA BANK to cater to the needs such as return explanation, financial position, etc.

Stock exchange performs activities such as trading in share, securities, bonds, mutual fund & commodities. Stock Broking industry is growing at an enormous rate, as more and more people are attracted towards stock exchanges with the hope of making profits.

But during this period the country also registered a fairly high industrial growth. The old industries and business establishments who wanted to expand the activities as well as the new industries and the business establishments floated shares in the market to raise capital for their activities. The companies, which registered steady growth, earned confidence of the people and their shares, were rated high in the market.
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This project report helps the reader to understand the techniques of investing in the stock market particularly in the secondary market. Some of the proven techniques have been used in this report to help the reader or investor. Fundamental Analysis is the study of everything from the overall economy and industry conditions, to the financial condition and management of specific companies (i.e., using real data to evaluate a stocks value).

Technical analysis is the examination of past price movements to forecast future price movements. Technical analysts are sometimes referred to as chartists because they rely almost exclusively on charts for their analysis.

RESEARCH METHADOLOGY
The methodology followed in this project involves the following phases:Methods of Collection of data Type of the project Interpretation and recommendation

Methods of Collection of data

The information is collected through both primary sources and secondary sources during the project. That information was utilized for calculating performance evaluation and based on that, interpretations were made.

Sources of Primary Data: The sources of primary data are discussion with my company guide and various observations.

Sources of secondary data: Annual reports were used for the required calculations to be made, and for various information, Draft red herring prospectus, Red herring prospectus was also used. Internet data, books, journals, kotak bank website, Wikipedia and various department of bank were also looked upon.
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Analysis
The data collected laid the foundations for the study and gave a platform for the analysis and findings which lead to the fulfillment of the objectives. The data collection and analysis paves way for the recommendation and conclusion of the study that reveals some important findings regarding the strategies and policies with reference to kotak Mahindra bank Limited. For the Financial performance analysis, Ratios analysis was used and for fundamental and technical analysis of shares, gathered theoretical knowledge of some basic concepts.

Conclusion and Recommendation

After completion of the entire analysis, interpretation and recommendation were made on the basis of tables, charts and figures. Statistical tools like Tables and Charts were used for representing of the data.

INTRODUCTION TO MY PROJECT
I am doing my 2 year Post graduate diploma course in finance from Institute for technology and management so as a partial fulfillment of requirement of my summer internship, a project has been prepared on study and evaluation of banking products and basic concepts on online trading of shares in which financial performance of the company using various ratios has been analysed and which CASA products are suitable for a particular category of people have been learnt and finally gathered the theoretical knowledge on basic concepts on online trading used during fundamental and technical analysis.

OBJECTIVE OF THE STUDY

Study of banking products gives a better knowledge of which CASA products are suitable for a particular group of people. Study how new distribution channels such as Internet Banking, ATM facility, Phone Banking have changed the face of the Banking industry. Understand various current account products available. (Edge, Pro, Ace) Understand various savings account products. (Edge, Pro, Ace) Understand various other facilities provided by the bank to customers. To understand financial position of the company with the help of ratio analysis.

 To understand the online share trading through various theoretical concepts which are helpful during fundamental and technical analysis. Understand various chart patterns used.

SCOPE OF THE STUDY

The study was done in the partial requirement of fulfillment of my post graduate diploma in management course in finance stream. Kotak Mahindra bank ltd.is one of the leading financial institution. The study is based on the kotak banks product offered to the customers and concepts of online share trading followed by kotak house and to understand the financial performance of the company. The branches of kotak bank follow similar practices which are outside the scope of the study. Study was based on published documents by kotak Mahindra bank ltd. and other notable authorities.

LIMITATIONS OF THE STUDY

Inadequacy of required data is the main constraint. Usually banks do not provide with financial documents as things are to be kept secret. In such cases data is taken with certain assumption. Dealing with customers is always the common constraint for all. To convince for CASA products to customers was not easy.

 Time is definitely a constraint. Time was insufficient to assess all processes and policies of an organization of KMBL. As data is secondary, so it cannot be said to give constant conclusions, as it is not revised to present situation.

AN OVERVIEW OF KOTAK MAHINDRA BANK

Overview
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 life insurance, to investment banking, the group caters to the financial needs of individuals and corporates.

The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 282 cities and towns in India and offices in New York, London, Dubai and Mauritius. The Group services around 2 million customer accounts.

THE JOURNEY SO FAR ...

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group. In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital and Kotak Securities.

Story of Kotak
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Since then it's been a steady and confident journey to growth and success.

1986: Kotak Mahindra Finance Limited starts the activity of Bill Discounting.

1987: Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market.

1990: The Auto Finance division is started.

1991:The Investment Banking Division is started. Takes over FICOM, one of Indias largest financial retail marketing networks.

1992: Enters the Funds Syndication sector.

1995: Brokerage and Distribution businesses incorporated into a separate company Kotak Securities. Investment Banking division incorporated into a separate company Kotak Mahindra Capital Company.

1996: The Auto Finance Business is hived off into a separate company Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Groups entry into information distribution.

1998: Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.

2000: Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.

2001: Matrix sold to Friday Corporation Launches Insurance Services.

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2003: Kotak Mahindra Finance Ltd. converts to a commercial bank the first Indian company to do so.

2004: Launches India Growth Fund, a private equity fund.

2005: Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund.

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COMPANY PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of Indias most reputed financial organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the groups flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).This approval creates banking history since Kotak Mahindra Finance Ltd is the first company in India to convert to a bank. The license authorizing the bank to carry on banking business has been obtained from the RBI in tune with Section 22 of the Banking Regulation Act 1949.

KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement of Business on 11th Feb 1986. The bank customers have access to entire VISA network of 4500 ATMS in India and 800000ATMS worldwide accepted in more than 56000 establishments across India and 10 million worldwide. The customer also has access to over 800 ATMs with sharing arrangements with UTI BANK, of these 125 are in the NCR.

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KOTAK stands for: K: Knowledge and competence O: Offering Innovative and Proactive solutions T: Transparent and Fair A: Approachable and Warm to build Relationships K: Keeping it simple for your customers to help them understand better.

Our Corporate Identity

The symbol of the Infinite Ka reflects our global Indian personality. The Ka is uniquely Indian while its curve forms the infinity sign, which is universal. One of the basic tenets of economics is that mans needs are unlimited. The Infinite Ka symbolises that we have an infinite number of ways to meet those needs.

Kotak Group Companies Kotak Mahindra Bank

The Kotak Mahindra Groups flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offers a central platform for customer relationships across the groups various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.
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Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business.

Kotak Securities
Kotak Securities Ltd., 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 non-institutional investor categories with presence all over the country through franchisees and co-ordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on well-researched expertise and financial products to the non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and

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wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 11,000 crores and offers schemes catering to investors with varying risk- return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited, is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. 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, to make them financially independent.

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Group Structure

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KOTAKS PRODUCT DETAIL

Product Detail
Kotak Mahindra Bank is one of the prominent subsidiaries of Kotak Mahindra group. The activities of the company being parallel to its objective are very wide and cover all the components of a Bank. The Basic area of Operations is the Banking business, other products are meant for the regular revenue generation. Being a Banking house, the company is in regular touch with Banking Accounts, Investment Services, Convenience Banking and Other Services.

They offer complete solutions that address all your financial requirements, whether you're an individual or a firm. From everyday banking to long term investments their offering covers it all. This wide range of products is delivered to you with a genuine understanding of your specific need and warm, personalised service. Kotak Mahindra Bank, it's not about selling you many different products it's about working out a holistic, pragmatic solution that addresses your financial needs. Through their varied products,they commit themselves to becoming banker to the customer rather than being asset financier to our customers.

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Banking Accounts

There are three types of banking account: Savings Account Current Account Term Deposit

SAVINGS ACCOUNT Choose from our range of Savings Accounts

KOTAK MAHINDRA has got a variety of options of savings accounts to choose from for its customers according to their convenience and requirements .These savings accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS

ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs75000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements.

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Thus the three account opening options in savings account are as mentioned above:

1. EDGE SAVINGS ACCOUNT: Kotak Mahindra Banks Edge Savings Account is a complete financial package customized to suit individual banking needs. Its constant endeavour is to enable regular financial transactions through online platform so that most of payments can be made directly through your account or card.

Features & Benefits

Wide ATM access through the Kotak Mahindra Bank Debit Card One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or enquire balance at no extra charge!

Multiple Access Channels Access An account through phone, mobile phone or internet to get information about account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking.

Financial payments facilitated through the savings account Use the free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.

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Quick and easy funds transfer Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multicity cheque book so that money from account is received by the beneficiary in the fastest possible time.

Free investment account One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting your Bank Account. Besides this you get a consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports. Attractive returns Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.

2. PRO SAVINGS ACCOUNT: Kotak Mahindra Banks Pro Savings Account is an account packed with powerful features to provide a superior banking experience at a very comfortable balance requirement. They provide a relationship manager who will specifically take care of banking and investment needs.
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Features & Benefits

Free ATM access all domestic VISA ATM network Walk into any VISA ATM in India to check balance or withdraw cash absolutely free. no longer have to worry about locating your Bank or Partner Bank ATM Use the first VISA ATM that you spot, for cash withdrawal or balance enquiry transactions.

Multiple access channels Access your account through phone, mobile phone or internet to get information on your account balance or track your transactions. You can even transfer funds through Phone Banking or Net Banking.

Free investment account One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting bank account. Besides this get a consolidated view of all the mutual fund investments across schemes with updated returns status, latest NAV information and research reports.

Financial payments facilitated through the savings account Use our free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.

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Quick and easy funds transfer Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multicity cheque book so that money from account is received by the beneficiary in the fastest possible time

Attractive returns Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.

Dedicated relationship manager You get a one point contact for all your banking related queries and transactions. Your relationship manager will also help you with financial planning and sound investment decisions.

Free banking transactions You can issue demand drafts or send cheques for collection on branch locations without any charge to your account.

3. ACE SAVINGS ACOUNT: Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a world of financial benefits and privileged banking transactions.
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The account carries benefits ranging from personal investment advisory services to concierge services to free banking transactions. Onewill find that this package of services and privileges is unmatched by any other savings account in the market.

Features & Benefits

Free access at all domestic and international VISA ATMs No longer have to worry about locating your Bank or Partner Bank ATM Use the first VISA ATM that you spot, for free cash withdrawal or balance enquiry transactions. So walk into any VISA ATM in India or abroad to withdraw cash or for balance enquiry.

Multiple access channels Access the account anytime through land line, mobile phone or internet to get information on account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking.

Financial payments facilitated through the savings account Use the free Kotak Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping. All this at the click of a mouse!

Quick and easy funds transfer Transfer funds easily and with speed, to a beneficiary account at another bank. One can avail of this facility by walking into any of branches or by
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simple logging on to Net Banking. Also get a free multi-city cheque book so that money from your account is transferred to the beneficiary's account at any of branch locations, in the fastest possible time.

Free banking transactions One can issue demand drafts or send cheques for collection at all branches for no extra charge.

Attractive returns Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in the account, thereby providing maximum liquidity.

CURRENT ACCOUNT

Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether small/ mid size business or an enterprise spread across multiple locations in the country, would find a Current Account that's just designed for you. These Current accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS

ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly
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balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. With features ranging from Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free Demat Account, and more! Thus the three account opening options in savings account are as mentioned above:

1. Edge Current Account In need of a well equipped bank account to keep pace in all the business endeavors. They offer the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and the entire gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Edge Current Account is the ideal way to make money work harder.

Features & Benefits

Multi City Banking Current account/s with Kotak Mahindra Bank will be recognized in every other branch. One can just walk into a Kotak Mahindra Bank branch in any of our branches across country to satisfy all the banking needs.

2 - Way Sweep: Term Deposit linked Current Account Kotak 2-Way Sweep ensures that money never stops working for you. Daily balances, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the
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balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin advantages of attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank Branch location in India.

At-par Cheques Get free At-par Cheques that are treated as 'local clearing' cheques across all branch locations. All these at nominal costs.

Cheque Collection All Outstation cheques, drawn on any of branch locations, are collected 'at nominal charge' for you. The strong network of correspondent banks enables us to collect cheques from 1600 locations across India at faster speed and minimal cost

Mobile Banking and Alerts Our Mobile Banking & Alerts service enables to access bank account on Mobile Phone. One can access all your standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated to you via SMS

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2. PRO Current Account You need a well equipped bank account to keep pace with you in the ever changing business scenario. We offer you the Kotak Pro Current Account, armed with Kotak 2-Way Sweep, as well as an entire gamut of Banking Privileges and 'user-friendly' Convenience Banking facilities. The feature rich Kotak Pro Current Account is the ideal way to make your money work harder.

Key Features

Dedicated Relationship Manager Free Demand Drafts & Pay Orders Free At Home Services Better Forex rates and Efficient Trade Services

3. ACE Current Account In the need of a well equipped bank account to keep pace with you in the ever changing business scenario. They offer you the Kotak Ace Current Account, armed with Business benefits and exclusive Ace Privileges and an entire gamut of banking conveniences especially designed for you. The feature rich Kotak Ace Account is the ideal way to make money work harder

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TERM DEPOSITS

Key Features Ease and convenience of operation Liquidity through overdraft or sweep-in facility No penalty on pre-mature encashment Nomination facility available

Give your portfolio stability of returns and safety and liquidity. Invest in Kotak Bank Term Deposit. It offer attractive returns on term deposits and investing in them is really simple and convenient.

Features & Benefits

Ease and convenience of operation For the first time in India, New to Bank customer can also apply online for term deposit. An existing customer,can place a term deposit through Phone Banking or Net Banking. What's more, one can even renew this deposit by placing an instruction over phone. Needless to mention, he can do all this and more by walking across into any of branches.
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Liquidity through overdraft or sweep-in facility Deposit will be available to you should you need them in case of an emergency. One can avail upto 85% overdraft against term by paying 2% above deposit rate. This facility is available for deposits above Rs.50,000 for a tenure of 181 days or more. One can also choose to link term deposit to savings / current account, whereby if need be, term deposit will automatically be encashed to meet withdrawal requirement.

No penalty on pre-mature encashment In case term deposit is pre-maturely encashed,one will earn interest at the rate prevailing on the date of deposit for the withdrawn amount.

Nomination facility available One can avail this facility for each & every account that open with us i.e. nominate different persons for different term deposit accounts can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit.

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INVETSMENT SERVICES

Making your money grow

At Kotak Mahindra Bank,can recognise that financial needs vary, not just amongst individuals, but across the different stages of your life. They have years of experience in helping people put together an investment portfolio that works best for them.

DEMAT

Key Features

Efficient depository services that allow you to hold your shares in

convenient, "demat" formats

Leverage

opportunities in the stock-market when you spot them

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It offers streamlined, efficient depository services that allow to hold shares in the convenient "demat" formats and leverage opportunities in the stockmarket when you spot them Being a brokerage house, the company is in regular touch with the share market and its relative indexes like NSE &BSE, NCDEX. NSDL, CSDL. Lets understand the relative terms :

SEBI (Stock Exchange board of India) It check out on NSE and BSE and all type of share trading (Both primary and secondary market)

NSE &BSE Kotak Mahindra Bank allows to costumer to trade in share with NSE and BSE both (in primary and secondary market both). In BSE costumer can trade in 2452 stocks and in NSE costumer can trade in 933 companies. The index of NSE is Nifty and for BSE Sensex

NSDL AND CSDL Kotak Mahindra Bank allow to costumer to invest in mutual fund and bonds. NSDL (National security depository limited) and CSDL (Central security depository limited) check out on this type of investment

MCX AND NCDEX Kotak Mahindra Bank also allow to costumer to trade in commodity by MCX (Multi Commodity exchange) and NCDEX (National Commodity daily exchange. In NCDEX 55 commodity are to trade
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INVESTMENT PRODUCTS OFFERED BY KOTAK BANK

MAHINDRA

The following are the various products of Kotak Mahindra Bank: DEMAT & ON LINE TRADING ACCOUNT : The 3-in-1 account integrates your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.

INITIAL PUBLIC OFFERS(IPOS)

In the above products we have discussed investment in equity through secondary markets .another way of investing in equity markets is through the primary market route .whenever a company comes out with an initial public offering you may choose to apply for the share. Based on number of valid application received, the company would then allot the share to applicants. The offline way of investing in an IPO is by filling physical application forms, cheques. And submitting the forms through your broker. With KOTAK MAHINDRA BANK all you have to do is filling number of share on the site and submit. DERIVATIVES Customers wi th different types of risk profile can use derivatives. Hedging the cash market position ideal for low risk profile.

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 Taking advantage of arbitrage opportunity in equity and derivatives markets ideal for low risk profile Taking a view on stock/index for as long as 3 month period medium risk profile Speculative trading-high risk profile KOTAK MAHINDRA BANK offers online investment in future and option, with benefit of automated settlements and online risk monitoring system

Mutual Funds

Key Features

Assitance

at every step of the investment process

An experienced research team to analyse and research the Mutual Funds

available in the market

Portfolio

assistance

The team analysis and researches the Mutual Funds available in the market, helping you make more informed decisions. The recommendations take into account all relevant factors including the investment philosophy of the Asset Management Company, portfolio quality, risk-adjusted returns and market trends.

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The Mutual funds on advisory list range form Debt to Equity funds and are drawn from top performing schemes of renowned Mutual Fund houses like Franklin Templeton, Kotak, Reliance, Prudential ICICI etc.Relationship Manager will recommend the funds that suit the investment objectives. Instead of buying shares of different companies tracking the price movements performance of the company, growth prospects of the industries etc. and then taking your own buy/sell decision, you may consider making investment in equity/debt market through the mutual fund route. Mutual fund is a SEBI registered entity that pools the money of many individuals investors to purchase the stocks, bond or other financial instruments. Professional

Management and diversification are the two primary benefits of mutual fund investing. For beginners, or for customer who are unable to spend time on researching stocks themselves, mutual fund is an ideal route for a investment in equity. Investing in mutual funds offline involves, tracking down the agents appointed by the mutual funds AMCs, filling lengthy forms, writing cheque, rushing to the office of the agents before the cut off timing to ensure that the desired NAV is allotted

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BANK ASSURANCE

They offer a range of carefully selected insurance policies across the entire spectrum of life insurance products Relationship managers will analyze your insurance needs and develop the solution that works best for you.
KOTAK INSURANCE has a wide array of insurance plans that have been

designed with the philosophy that different individuals are bound to have differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors.

The various plans offered by KOTAK INSURANCE are as follows: Kotak Smart Advantage Plan Kotak Eternal Life Plans Kotak Headstart Child Plans Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Capital Multiplier Plan Kotak Term Plan Kotak Preferred Term Plan

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CONVENIENCE BANKING

Anywhere, Anytime Banking

In today's day and age time is money. You work hard and have a busy schedule. Doing banking should be easy and convenient and not add to worries.

Kotak Mahindra Bank realize this and have specially tailored a wide range of value added products and services to make money work for you. These, coupled with the highest standard of customer care will make life simpler and easier.

Multiple Banking Channels

Today the technology driven banks are finding various means to reduce costs and reach out to as many customers as possible spread over a diverse area. This has led to using multiple channels of delivery of their products.

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 ATM (Automatic Teller Machine) :

An ATM is basically a machine that can deliver cash to the customers on demand after authentication. However, nowadays we have ATMs that are used to vend different FMCG products also. An ATM does the basic function of a banks branch, i.e., delivering money on demand. Hence setting of newer branches is not required thereby significantly lowering infrastructure costs.

Cost reduction is however possible only when these machines are used. In India, the average cash withdrawal per ATM per day has fallen from 100 last years to 70 this year. Though the number of ATMs has increased since last year, it is not in sync with the number of cards issued. Also, there are many dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also hold the keys to future operational efficiency Account holders of Kotak Mahindra Bank Saving Account having Visa Electron Debit Card can access other Banks ATM machines unlimited times per month for free, after that the Account holder has to pay nothing for the transaction. But also holders of ATM cards cannot access machines belonging to other Banks.

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 Net Banking:

Net banking means carrying out banking transactions via the Internet. Thus the need for a branch is completely eliminated by technology. Also this helps in serving the customer better and tailoring products better suited for the customer.

A customer can view his account details, transaction history, order drafts, electronically make payments, transfer funds, check his account position and electronically communicate with the bank through the Internet for which he may have wanted to visit the bank branch. Net banking helps a bank spread its reach to the entire world at a fraction of the cost

Phone Banking:

This means carrying out of banking transaction through the telephone. A customer can call up the banks help line or phone banking number to conduct transactions like transfer of funds, making payments, checking of account balance, ordering cheques, etc. This also eliminates the customer of the need to visit the banks branch.

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 Mobile Banking

Banks can now help a customer conduct certain transactions through the Mobile Phone with the help of technologies like WAP, SMS, etc. This helps a bank to combine the Internet and telephone and leverage it to cut costs and at the same time provide its customer the convenience. Thus it can be seen that tech savvy banks are tapping the entire above alternative channels to cut costs improve customer satisfaction SMS Banking Kotak Mahindra Bank's SMS Banking service enables you to access your bank account, investment account and demat account on your Mobile Phone. Now get latest update on your account balance, salary credits, large debits, large credits, holding value and much more, on your mobile anytime.

INTERNET BANKING

INTRODUCTION The Internet banking is changing the banking industry and is having the major effects on banking relationships. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites highly sophisticated offerings

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enabling integrated sales of additional products and access to other financial services- such as investment and insurance.

DRIVERS OF CHANGE Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a costeffective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago.

The primary drivers of Internet banking are: Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers

Internet Banking is the most technological advanced means to do Banking. Through this medium the Account holder can do various types of transactions without having to leave his Office/Residence. The Account holder has the convenience to do transaction no matter where he is in the world at any time of the day. Internet is the most cost effective medium of

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Banking from the point of view of the Banks it costs a fraction to the Bank as compared to other mediums like Branch Banking or ATM.

But this medium is not as favored a medium as it in the west , the reasons for this is that firstly , this is a relatively new concept in India ,secondly , general perception that this is not safe , thirdly , computers and internet are not widely spread all over the country.

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STRATEGIC ALLIANCES
NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking Technology (IDRBT), a group established by the Reserve Bank of India (RBI) in 1996, has planned to set up a national switch to hook up all of the country's 10,000-odd ATMs.

The idea of establishing ATM interconnectivity through a national switch has been approved by the information chiefs of various Banks. The expected cost of transactions routed through the switch is to be under 10 rupees (21 cents U.S.) each, due to the high volumes of transactions -- almost 100,000 per day.

CASH NET It is an Alliance between Citibank, Industrial Development Bank of India, Kotak Mahindra Bank and UTI Bank. This is the country's first independent shared ATM network.

IDBI Bank received permission from the Reserve Bank (RBI) to serve as the network's settlement bank.

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Cash net will give access to more than 1,300 ATMs for more than 6 million debit cardholders of the member banks. The Alliance would constitute about a third of the total card base and 15 percent of the ATM base in the country.

Kotak Mahindra Bank and REDIFF.com REDIFF.com India and Kotak Mahindra Bank have entered into an alliance to provide online and offline banking and related services to the Indian consumer.

The alliance will enable information on the entire range of the banks consumer banking products to be made available to the 6.4 million online customers of Rediff.com.

The services offered include detailed information on various deposits, loans and mortgages, credit cards, mutual funds and insurance products of the bank. Users will be able to directly interact with the bank and request for products online.

OTHER SERVICES

BANKING HOURS Kotak Mahindra Bank Account holders have been able to infer that Branch Banking is the second most Frequent Point of Interaction with the Bank. The Average Banking Hours is a very important aspect associated with any Bank. In todays fast paced life where people who hold Accounts with the
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Bank are busy working it is important that they can find a way to visit the Bank without having to miss out on work.

The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm, the Bank is open to the public for ten hours. These timings are convenient for especially those Account holders who are working, these people can visit the Bank after their Office finishes. Apart from the Average Banking Hours Kotak Mahindra Bank offers to its Account holders 24 Hour Branch, 365 Days Branch and the facility of Sunday Banking.

Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in India, this is a big boon for people who cannot take the time out to visit the Bank during the normal working hours and is also very handy during emergencies.

The 365 Day Branch of Kotak Mahindra Bank is also unique and the only other Bank offering this service is ABN Amro , this Branch is open regardless of the fact that it is a Sunday or a public holiday. Sunday Banking is very useful for people who are busy throughout the week and the only day when they find the time is Sunday. Other Banks offering this service apart from Kotak Mahindra Bank are ABN Amro and CITIBANK.

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Best Compliments Card the perfect gift Introducing Best Compliments Card - the prepaid card from Kotak Mahindra Bank. It lets your loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards, be it a shopping mall, a restaurant or a multiplex. So go ahead and give someone the perfect gift! No Kotak Mahindra Bank account required Not restricted to a single brand or outlet - accepted at over 3 lakhs merchant establishments in India that accept Visa cards Can be used at your convenience- no need to spend the entire value in a single purchase Attractively packaged and ready-to-gift Available at all Kotak Mahindra Bank branches Valid for two years from date of issue of card

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FINANCIAL OVERVIEW

Annual results in brief

(Rs crore) Mar ' 13 Sales Operating profit Interest Gross profit EPS (Rs) 8,042.49 5,648.21 4,836.82 2,156.61 18.23 Mar ' 12 6,180.24 4,290.33 3,667.75 1,655.01 14.65 Mar ' 11 4,303.56 2,613.15 2,058.49 1,324.79 11.10 Mar ' 10 3,255.62 1,580.34 1,397.48 1,297.00 8.06 Mar ' 09 3,065.14 1,614.79 1,546.60 679.99 3.99

Annual results in details

Mar ' 13 Other income Stock adjustment Raw material Power and fuel Employee expenses Excise Admin and selling expenses Research and development expenses Expenses capitalised Other expenses Provisions made Depreciation Taxation Net profit / loss 1,160.67 1,051.18 1,158.55 184.55 611.34 1,360.72 Mar ' 12 977.35 872.19 962.64 55.08 514.87 1,085.05 Mar ' 11 633.04 751.15 802.17 137.09 369.52 818.18 Mar ' 10 628.24 555.79 633.60 485.89 250.00 561.11 Mar ' 09 357.86 1,196.42 253.93 149.96 276.10

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Mar ' 13 Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg.of non-prom. shares (Lacs) Agg.of non promotoholding (%) OPM (%) GPM (%) NPM (%) 373.31 4109.27 55.04 70.23 23.43 14.79

Mar ' 12 370.35 4050.06 54.68 69.42 23.12 15.16

Mar ' 11 368.44 4010.81 54.43 60.72 26.84 16.57

Mar ' 10 348.14 1802.30 51.77 48.54 33.39 14.45

Mar ' 09 345.67 1645.56 47.62 52.68 19.87 8.07

Cash flow
(Rs crore) Mar ' 13 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year 1,360.72 -1,405.46 -1,478.16 3,938.23 1,054.61 2,634.55 3,689.16 Mar ' 12 1,599.89 -1,338.69 -130.81 1,633.07 163.57 2,470.98 2,634.55 Mar ' 11 1,187.68 -1,474.47 -78.99 1,724.19 170.72 2,300.26 2,470.98 Mar ' 10 811.08 1,572.56 -275.59 -137.38 1,159.59 1,140.67 2,300.26 Mar ' 09 426.03 -833.15 -95.40 -35.78 -964.33 2,105.00 1,140.67

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Profit loss account

(Rs crore) Mar ' 13 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 1,075.14 1,002.06 2,077.20 1,128.47 1,160.66 2,289.14 4,836.82 132.53 -2,680.21 1,360.72 3,523.51 52.38 7.29 3,463.84 902.36 130.86 604.67 1,637.89 1,726.64 13.86 1,740.50 3,667.75 116.76 -2,044.00 514.88 1,084.49 0.56 1,085.05 2,579.57 44.49 7.22 2,527.86 783.83 103.25 543.24 1,430.32 1,250.25 18.94 1,269.20 2,058.49 98.27 -887.55 369.52 818.16 0.02 818.18 1,784.09 36.88 4.37 1,742.84 583.48 53.81 720.13 1,357.41 900.90 26.14 927.05 1,397.48 90.00 837.05 250.00 564.05 -2.94 2.01 563.11 1,212.06 29.66 1,182.40 583.63 66.78 613.64 1,264.05 452.03 42.00 494.03 1,546.60 69.56 424.47 149.96 275.82 0.27 276.10 804.27 25.96 1.86 776.45 8,042.49 7,032.28 4,739.06 3,655.79 3,262.68 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

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Balance sheet
(Rs crore) Mar ' 13 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs) 29,301.30 7466.09 23,485.52 7406.90 16,761.36 7368.72 7,219.79 3481.41 5,674.45 3456.69 50,666.68 2,789.81 47,876.87 77,214.72 1,935.91 2,553.67 -617.76 21,399.01 1,503.33 3,032.36 -1,529.03 16,018.01 1,420.69 2,869.42 -1,448.73 11,491.58 1,622.33 3,257.34 -1,635.01 7,688.52 464.42 464.42 28,873.43 955.41 505.45 449.97 21,566.81 831.80 406.20 425.61 17,121.44 745.34 317.69 427.65 12,512.66 460.61 247.25 213.36 9,110.18 51,028.77 60,493.26 38,536.52 46,517.28 29,260.97 36,094.36 23,886.47 28,426.38 15,644.93 19,550.46 373.30 9,091.19 370.34 7,610.41 368.44 6,464.95 348.14 4,191.78 345.67 3,559.86 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

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Ratios
(Rs crore) Mar ' 13 Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share EPS (Rs) Book value (incl rev res) per share EPS (Rs) Net operating income per share EPS (Rs) Free reserves per share EPS (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio 18.16 0.94 18.95 0.75 0.04 16.85 0.49 0.04 10.86 0.49 0.05 8.46 0.49 0.08 5.91 5.39 15.64 0.11 4.83 17.15 0.12 4.28 18.93 5.70 5.26 15.97 4.90 4.01 19.97 7.08 14.03 12.38 14.78 16.22 14.37 14.37 65.48 24.55 22.89 15.39 17.04 13.58 13.59 65.99 26.38 24.30 17.19 19.26 11.97 11.97 47.50 24.64 22.18 15.23 17.76 12.42 12.35 48.71 13.85 11.72 8.35 10.45 7.06 7.06 50.50 18.23 20.00 18.23 20.00 0.70 15.11 126.77 126.77 107.72 14.64 16.22 14.65 16.23 0.60 23.31 107.75 107.75 94.94 87.75 11.10 12.44 11.10 12.44 0.50 16.97 92.74 92.74 64.31 76.84 16.20 18.79 16.12 18.70 0.85 25.88 130.40 130.40 105.01 102.80 7.98 9.99 7.99 10.00 0.75 13.08 112.98 112.98 94.39 89.63 Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09

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INTRODUCTION TO KOTAK SECURITIES

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate). Kotak Securities, an affiliate of Kotak Mahindra Bank, is the stockbroking and distribution arm of the Kotak Mahindra Group. The institutional business division, which provides AKSESS, primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). The division also has a comprehensive research cell with sectoral analysts covering all the major areas of the Indian economy. Kotak Securities Ltd. is India's leading stock broking house with a market share of around 8.5 % as on 31st March. Kotak Securities Ltd. has been the largest in IPO distribution.

The company has a full-fledged research division involved in Macro Economic studies, Sectorial research and Company Specific Equity Research combined with a strong and well networked sales force which helps deliver current and up to date market information and news.

Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services
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Limited (CDSL), providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them.

Kotak Securities has 195 branches servicing more than 2,20,000 customers and a coverage of 231 Cities. Kotaksecurities.com, the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments.

Kotak Securities Limited manages assets over 2500 crores of Assets Under Management (AUM) .The portfolio Management Services provides top class service, catering to the high end of the market. Portfolio Management from Kotak Securities comes as an answer to those who would like to grow exponentially on the crest of the stock market, with the backing of an expert.

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INTRODUCTION TO CONECPTS OF TRADING

FUNDAMENTAL AND TECHNICAL ANALYSIS:

Fundamental analysis The basic purpose of buying a security is to earn dividends and ultimately sell it at higher price. An investor therefore is interested in obtaining estimates of future prices of the share. These in turn will depend upon the performance of the industry to which the company belongs and the general economic situation of the country. The multitude of factors affecting a companys profitability can be broadly classified as:

1. Economic wide factors: these includes the factors like growth rate of the economy, the rate of inflation, foreign exchange rates etc which affects profitability of all companies.

2.

Industry wide factors: these include factors which are specific to industry to which the company belongs. For instance the demand supply gap in the industry, the emergence of substitutes, and changes in government policies towards industry affects the company belonging to an industry.

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3. Company wide factor: these factors are specific to a firm. The firm specific factors like plant and machinery, the brand image of the product, and ability of the management to affect the profitability.

Fundamental analysis considers the financial and economic data that may influence the viability of a company. There are many flavors of fundamental analysis centered on such concepts as value, growth and turnarounds. Technical analysis is the study of the price chart. It assumes that by looking at the progress of that little squiggly line you can forecast the future trend of a stock. Fundamental analysis is essential to most investors, and technical analysis is essential to most traders and speculators.

An investor with rational and scientific approach will therefore be interested in analyzing the influence of the expected performance of the company, industry and economy as a whole on share prices, even before taking the investment decision such analysis is called fundamental analysis.

Fundamental analysis is the method of evaluating securities by attempting to measure the intrinsic value of a particular stock. It is the study of everything from the overall economy and industry conditions, to the financial condition and management of specific companies (i.e., using real data to evaluate a stocks value). The method utilizes items such as revenues, earnings, return on equity and profit margins to determine a companys underlying value and potential for future growth.
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One of the major assumptions under fundamental analysis is that, even though things get mis priced in the market from time to time, the price of an asset will eventually gravitate toward its true value. This seems to be a reasonable bet considering the long upward march of quality stocks in general despite regular setbacks and periods of irrational exuberance. The key strategy for the fundamentalist is to buy when prices are at or below this intrinsic value and sell when they got overpriced.

Technical analysis:

Technical analysis is the examination of past price movements to forecast future price movements. Technical analysts are sometimes referred to as chartists because they rely almost exclusively on charts for their analysis. Moving Average: A Moving Average is an indicator that shows the average value of a security's price over a period of time. When calculating a moving average, a mathematical analysis of the security's average value over a predetermined time period is made. As the securities price changes, its average price moves up or down.

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There are several popular ways to calculate a moving average. Meta Stock for Java calculates a "simple" moving average--meaning that equal weight is given to each price over the calculation period. Interpretation: The most popular method of interpreting a moving average is to compare the relationship between moving averages of the security's price with the security's price itself. A buy signal is generated when the security's price rises above its moving average and a sell signal is generated when the security's price falls below its moving average.

This type of moving average trading system is not intended to get you in at the exact bottom nor out at the exact top. Rather, it is designed to keep you in line with the security's price trend by buying shortly after the security's price bottoms and selling shortly after it tops. The critical element in a moving average is the number of time periods used in calculating the average. When using hindsight, you can always find a moving average that would have been profitable. The key is to find a moving average that will be consistently profitable. The most popular moving average is the 39-week (or 200-day) moving average. This moving average has an excellent track record in timing the major (long-term) market cycles.

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Advantages: The advantage of moving average system of this type (i.e., buying and selling when prices break through their moving average) is that you will always be on the "right" side of the market: prices cannot rise very much without the price rising above its average price. The disadvantage is that you will always buy and sell some late. If the trend does not last for a significant period of time, typically twice the length of the moving average, you will lose your money. Support and Resistance: Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control. What Is Support? Support is the price level at which demand is thought to be strong enough to prevent the price from declining further. The logic dictates that as the price declines towards support and gets cheaper, buyers become more inclined to buy and sellers become less inclined to sell. By the time the price

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reaches the support level, it is believed that demand will overcome supply and prevent the price from falling below support. Support does not always hold and a break below support signals that the bears have won out over the bulls. A decline below support indicates a new willingness to sell and/or a lack of incentive to buy. Support breaks and new lows signal that sellers have reduced their expectations and are willing sell at even lower prices. In addition, buyers could not be coerced into buying until prices declined below support or below the previous low. Once support is broken, another support level will have to be established at a lower level. Where Is Support Established? Support levels are usually below the current price, but it is not uncommon for a security to trade at or near support. Technical analysis is not an exact science and it is sometimes difficult to set exact support levels. In addition, price movements can be volatile and dip below support briefly. Sometimes it does not seem logical to consider a support level broken if the price closes 1/8 below the established support level. For this reason, some traders and investors establish support zones. What Is Resistance? Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The logic dictates that as the price advances towards resistance, sellers become more inclined to sell and buyers become less inclined to buy. By the time the price reaches the
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resistance level, it is believed that supply will overcome demand and prevent the price from rising above resistance. Resistance does not always hold and a break above resistance signals that the bulls have won out over the bears. A break above resistance shows a new willingness to buy and/or a lack of incentive to sell. Resistance breaks and new highs indicate buyers have increased their expectations and are willing to buy at even higher prices. In addition, sellers could not be coerced into selling until prices rose above resistance or above the previous high. Once resistance is broken, another resistance level will have to be established at a higher level.

Where Is Resistance Established? Resistance levels are usually above the current price, but it is not uncommon for a security to trade at or near resistance. In addition, price movements can be volatile and rise above resistance briefly. Sometimes it does not seem logical to consider a resistance level broken if the price closes 1/8 above the established resistance level. For this reason, some traders and investors establish resistance zones. So, Here, Identification of key support and resistance levels is an essential ingredient to successful technical analysis. Even though it is sometimes difficult to establish exact support and resistance levels, being aware of their existence and location can greatly enhance analysis and forecasting abilities. If a security is approaching an important support level,
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it can serve as an alert to be extra vigilant in looking for signs of increased buying pressure and a potential reversal. If a security is approaching a resistance level, it can act as an alert to look for signs of increased selling pressure and potential reversal. If a support or resistance level is broken, it signals that the relationship between supply and demand has changed. A resistance breakout signals that demand (bulls) has gained the upper hand and a support break signals that supply (bears) has won the battle.

Price Oscillator: The Price Oscillator displays the difference between two moving averages of a security's price. The difference between the moving averages can be expressed in either points or percentages. The Price Oscillator is almost identical to the MACD, except that the Price Oscillator can use any two user-specified moving averages. (The MACD always uses 12 and 26-day moving averages, and always expresses the difference in points.)

Interpretation: Moving average analysis typically generates buy signals when a shortterm moving average (or the security's price) rises above a longer-term moving average. Conversely, sell signals are generated when a shorter-term
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moving average (or the security's price) falls below a longer-term moving average. The Price Oscillator illustrates the cyclical and often profitable signals generated by these one or two moving average systems. Price Rate-Of-Change: The Price Rate-of-Change ("ROC") indicator displays the difference between the current price and the price x-time periods ago. The difference can be displayed in either points or as a percentage. The Momentum indicator displays the same information, but expresses it as a ratio. Interpretation: It is a well-recognized phenomenon that security prices surge ahead and retract in a cyclical wave-like motion. This cyclical action is the result of the changing expectations as bulls and bears struggle to control prices. The ROC displays the wave-like motion in an oscillator format by measuring the amount that prices have changed over a given time period. As prices increase, the ROC rises; as prices fall, the ROC falls. The greater the change in prices, the greater the change in the ROC. The time period used to calculate the ROC may range from 1-day (which results in a volatile chart showing the daily price change) to 200-days (or longer). The most popular time periods are the 12- and 25-day ROC for short to intermediate-term trading. These time periods were popularized by Gerald Appel and Fred Hitschler in their book, Stock Market Trading Systems.
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The 12-day ROC is an excellent short- to intermediate-term overbought/oversold indicator. The higher the ROC, the more overbought the security; the lower the ROC, the more likely a rally. However, as with all overbought/oversold indicators, it is prudent to wait for the market to begin to correct (i.e., turn up or down) before placing your trade. A market that appears overbought may remain overbought for some time. In fact, extremely overbought/oversold readings usually imply a continuation of the current trend. The 12-day ROC tends to be very cyclical, oscillating back and forth in a fairly regular cycle. Often, price changes can be anticipated by studying the previous cycles of the ROC and relating the previous cycles to the current market Relative Strength Index (RSI): The Relative Strength Index ("RSI") is a popular oscillator. It was first introduced by Welles Wilder in an article in Commodities (now known as Futures) Magazine in June, 1978. The name "Relative Strength Index" is slightly misleading as the Relative Strength Index does not compare the relative strength of two securities, but rather the internal strength of a single security. A more appropriate name might be "Internal Strength Index." Interpretation: When Wilder introduced the Relative Strength Index, he

recommended using a 14-day Relative Strength Index. Since then, the 9-day
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and 25-day Relative Strength Indexs have also gained popularity. The fewer days used to calculate the Relative Strength Index, the more volatile the indicator. The Relative Strength Index is a price-following oscillator that ranges between 0 and 100. A popular method of analyzing the Relative Strength Index is to look for a divergence in which the security is making a new high, but the Relative Strength Index is failing to surpass its previous high. This divergence is an indication of an impending reversal. When the Relative Strength Index then turns down and falls below its most recent trough, it is said to have completed a "failure swing." The failure swing is considered a confirmation of the impending reversal. The five uses of the Relative Strength Index: 1. Tops and Bottoms. The Relative Strength Index usually tops above 70 and bottoms below 30. It usually forms these tops and bottoms before the underlying price chart. 2. Chart Formations. The Relative Strength Index often forms chart patterns such as head and shoulders or triangles that may or may not be visible on the price chart. 3. Failure Swings (also known as support or resistance penetrations or breakouts). This is where the Relative Strength Index surpasses a previous high (peak) or falls below a recent low (trough). 4. Support and Resistance. The Relative Strength Index shows, sometimes more clearly than price themselves, levels of support and resistance.
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Divergences. As discussed above, divergences occur when the price makes a new high (or low) that is not confirmed by a new high (or low) in the Relative Strength Index. Prices usually correct and move in the direction of the Relative Strength Index.

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TREND LINES
In the preceding section, we saw how support and resistance levels can be penetrated by a change in investor expectations (which results in shifts of the supply/demand lines). This type of a change is often abrupt and "news based." In this section, we'll review "trends." A trend represents a consistent change in prices (i.e., a change in investor expectations). Trends differ from support/resistance levels in that trends represent change, whereas support/resistance levels represent barriers to change. As shown in the following chart, a rising trend is defined by successively higher low-prices. A rising trend can be thought of as a rising support level--the bulls are in control and are pushing prices higher.

As shown in the next chart, a falling trend is defined by successively lower high-prices. A falling trend can be thought of as a falling resistance level--the bears are in control and are pushing prices lower.

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The Bar Chart: The Bar chart is one of the most popular types of charts used in technical analysis. As illustrated on the left, the top of the vertical line indicates the highest price at which a security traded during the day, and the bottom represents the lowest price. The closing price is displayed on the right side of the bar and the opening price is shown on the left side of the bar. A single bar like the one to the left represents one day of trading.

The chart below is an example of a bar chart for AT&T (T):

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The advantage of using a bar chart over a straight-line graph is that it shows the high, low, open and close for each particular day.

Candle sticks Charting: Candlestick charts have been around for hundreds of years. They are often referred to as "Japanese candles" because the Japanese would use them to analyze the price of rice contracts. Similar to a bar chart, candlestick charts also display the open, close, daily high and daily low. The difference is the use of color to show if the stock went up or down over the day.

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The chart below is an example of a candlestick chart for AT&T (T). Green bars indicate the stock price rose, red indicates a decline:

Investors seem to have a "love/hate" relationship with candlestick charts. People either love them and use them frequently or they are completely turned off by them. There are several patterns to look for with candlestick charts - here are a few of the popular ones and what they mean.

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This is a bullish pattern - the stock opened at (or near) its low and closed near its high

The opposite of the pattern above, this is a bearish pattern. It indicates that the stock opened at (or near) its high and dropped substantially to close near its low.

Known as "the hammer", this is a bullish pattern only if it occurs after the stock price has dropped for several days. A small body along with a large range identifies a hammer. This pattern indicates that a reversal in the downtrend is in the works.

Known as a "star. For the most part, stars typically indicate a reversal and or indecision. There is a possibility that after seeing a star there will be a reversal or change in the current trend.

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Point and Figure Chart: The point & figure (P&F) chart is somewhat rare. In fact, most charting services do not even offer it. This chart plots day-to-day increases and declines in price: increases are represented by a rising stack of "X"s, while decreases are represented by a declining stack of "O"s. This type of chart was traditionally used for intraday charting (a stock chart for just one day), mainly because it can be long and tedious to create a P&F chart manually over a longer period of time.

The idea behind P&F charts is that they help you to filter out less significant price movements and to focus on the most important trends. Below is an example of a P&F chart for AT&T (T):

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POPULAR CHARTING PATTERNS: Technical analysts often use proven successful price patterns from great stocks as tools to find new great stocks. Let's look at a few examples

Cup and Handle - This is a pattern on a bar chart that can be as short as seven weeks and as long as 65 weeks. The cup is in the shape of a "U". The handle has a slight downward drift. The right-hand side of the pattern has low trading volume. As the stock comes up to test the old highs, the stock will incur selling pressure by the people who bought at or near the old high. This selling pressure will make the stock price trade sideways with a tendency towards a downtrend for anywhere from four days to four weeks, then it will take off. This pattern looks like a pot with a handle. It is one of the easier

patterns to detect; and investors have made a lot of money using it.

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 Head and Shoulders - This is a chart formation resembling an "M" in which a stock's price:

- Rises to a peak and then declines, then - Rises above the former peak and again declines, and then rises again but not to the second peak and again declines.

The first and third peaks are shoulders, and the second peak forms the head. This pattern is considered a very bearish indicator.

Double Bottom - This pattern resembles a "W" and occurs when a stock price drops to a similar price level twice within a few weeks or months. You should buy when the price passes the highest point in the handle. In a perfect double bottom, the second decline should normally go slightly lower than the first decline to create a shakeout of jittery investors. The middle point of the "W" should not go into new high ground. This is a very Bullish indicator.
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The belief is that, after two drops in the stock price, the jittery investors will be out and the long-term investors will still be holding on.

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CONCLUSION AND RECOMMENDATIONS

1. Kotak Mahindra Bank is Leading Bank in the country, it provides a variety of products and services to different segments of customers.

2. The Bank aims to serve customers from teenagers to senior citizens, hence different products designed to suit specific requirements of the above.

3. Aims to serve all classes of the society from the salaried middle class to the high income business class. Customers are categorized and segmented according to their requirements and needs. For Example, the EDGE Saving Account aims to serve middle class customers so minimum balance required to be maintained is Rs. 10000. While the PRO and ACE Saving Accounts are targeted at high income Customers, the minimum balance requirement is Rs. 20000 and Rs. 75000.

4. Customers who are more profitable to the Bank (High Value Customers) are provided special facilities. Priority Banking is meant to serve these high value customers.

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5. The Bank prides itself with the ability to provide differentiate products in the crowed market of saving accounts. Bank offers the free home baking, special co-branded debit cards (Smart fill Debit Card) which makes its product unique.

6. The Bank is also involved in marketing activities which serves as a medium of advertisement for the Bank. These are as follows: Extended happy hours at certain pubs in Delhi for the Banks account holders. Gift Vouchers on making utility payments, such as cell phones, electricity and MTNL bills. Free Gifts like caps, pens/wollets to its customers. Free add-on cards for relatives.

7. The Bank wants its customers to transact more through Internet Banking and ATM, Rather than the customers using the branch.

8. The Debit Cards provided by the Bank are Internationally Accepted around the world, hence giving the customers the convenience to transact anytime, anywhere.

9. The Bank has tied up with other Banks so that its customers can use other Banks ATM facility for free transactions

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10.The Bank also provides DEMAT account and also sells Mutual Funds, this provides the Bank and Government additional revenue. 11.The Bank has been very successful in enlarging its customer base during the last couple of years.

12.The Number One Reason of people choosing Kotak Mahindra Bank is the Brand Name/Reputation of the Bank. Hence it should be careful that the Brand name and Goodwill the Bank has earned is not diluted.

13.The Biggest competitors of the Bank are AXIS Bank, ICICI Bank, HDFC Bank and STANDRAD CHARTERED.

14. ATM Facility is most popular way to transact with the Bank.

15.Overall the customers appreciate the service and products offered by the Bank and are willing to recommend the Bank to their acquaintances , But more attention has to paid towards: Increasing the number of ATM machines.

Improving Internet Banking Facility.

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BIBLIOGRAPHY
There was immense need and flow of the information while conducting the analysis as well as while writing the thesis report, which was gathered through various sources mentioned below: Various Magazines and Newspapers such as Outlook Financial Times The Economic Times The Times of India The Hindustan Times Other References

Questionnaires, Journals, Broachers and various other documents gathered and collected from bank and various other sources such as ATM centers and associates. Internet www. kotak. com www. kotakmahindrabank.co.in www.google.com www.economictimes.com

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