Industry Overview: Banking is different from other businesses. In banking, Raw material and Final output are the same. Money. A high level of borrowed funds is not suitable for other businesses. In banking, it is necessary to borrow. Banking gives access to nearly all classes of people in society. Hardly any other business can do that. The use of public money is considered in the banking business concerning other businesses. Barely any other businesses achieve the status TO BIG TO FAIL. It’s easy for banks to become that much big. A real asset for any bank is mainly Its brand and Human resources. For others, Manufacturing plants or machines are essential assets. Banks play a crucial role in the Economy as giving loans or financing Infrastructure or housing is vital for Govt for that banks may play a key Role. Increasing the business of Banking network of branches is important though, in today’s Application era, we don’t need an extensive and Large network. But whatever is the web, that helps many businesses. Like when I need to go for IPO, I prefer KOTAK securities, SBi Cap, and Axis Capital rather than Other Investment bankers. Because they can use the Bank branch network for receiving payment, banks are helping the general public invest the money and channel the savings. But the most significant thing a bank does is keep the flow in the Economy. Without a bank, Govt can’t make it. Banking also helps to make records of income. As we live in a cashless payment era, a bank account is a must.
Company Overview: Kotak Mahindra BANK started as Kotak Mahindra Finance with the bill discount business. 1990-91 started financing passenger cars, Leasing and Hire purchases, and establishing investment banking. In that business, the company partners with Goldman Sachs and Ford credit for investment banking and vehicle Loans. Even before receiving the banking license, they have a Mutual fund business. It was the first Non-Banking Finance Company to become Bank. In 2003, RBI Give Them a Banking license. Today the Bank is one of the fastest-growing banks and one of the most admired financial institutions in India.
The Bank has over 323 branches and a customer account base of over 2.7 million all over the Nation, including Tier ii and rural areas, which is an enormous strength for Any bank. Currently, the Bank operates in insurance, Mutual funds, stock broking, and commercial banking. In commercial banking, the company operates in retail and wholesale (corporate) Banking. The Bank also operates overseas and provides its Customers and Investors overseas services. The Bank is in New York, London, Mauritius, Dubai, and Singapore.
The Bank offers complete financial solutions for infinite needs of all individual and non–individual customers depending on the customer’s need – delivered through a state-of-the-art technology platform. In addition, investment products like Mutual Funds, Life Insurance, retailing of gold coins and bars, etc., are also offered.
Savings and current accounts, which are vital for Any Bank, also play an essential role in Kotak Mahindra bank. As a result, the Bank has more than one option through which Bank acquires low-cost funds.
The Bank also offers a Depositories service through which customers can hold Equity shares, Debt, gold, and other Bond in electronic format.
The mobile application of the Bank is beneficial and one for all. It is doing many things, from booking flights and hotels to paying the mobile bills and DTH recharge.
Apart from phone and Internet banking, the Bank offers convenient banking facilities through Mobile banking, SMS services, Netc@rd, Home banking, and BillPay facility, among others.
The Bank offers comprehensive business solutions for the business community, including the Current Account, Trade Services, Cash Management services, and Credit Facilities. The Bank’s wholesale banking products provide business banking solutions for long–term investments and working capital needs, advice on mergers and acquisitions, and equipment financing. To meet the particular needs of the rural market, the Bank has dedicated business offerings of agricultural funding and Infrastructure. Its Agriculture Finance division delivers customized products for our rural customers’ capital financing and equipment financing needs.
Kotak Mahindra Bank addresses the entire spectrum of financial needs of Non–Resident Indians. The Bank has a tie-up with the Overseas Indian Facilitation Centre (OIFC) as a strategic partner, which gives them a platform to share its comprehensive range of banking and investment products and services for Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). In addition, their Online Account Opening facility and Live Chat service help get in touch in the comfort of homes and the convenience. These offerings are specifically designed to suit the overseas Indian’s personal financial needs and give the global Indians a near-to-home feel.
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Future Prospects: Kotak Mahindra bank is not only a bank, but on a consolidated level, it is an investment Bank, Asset Management Company, Insurance company, trustee company, and many other businesses. It is the company behind many successful IPOs, so that is one factor that increases future potential.
The penetration of financial services in India is shallow. However, it is expected that it will grow in upcoming years. For All that, Kotak Mahindra bank is well placed. The only exception is the Bank is mainly concentrating on HNI-like customers.
The investment banking business is taking off in India, and as Kotak Mahindra bank is one of the leading in the segment, it is expected that investment in the Bank will make good wealth.
