PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH

Summer Internship Project

Topic : Commercial Banking Products of Kotak Mahindra Bank

Guided By: Submitted To:

Prof.Sunil Kumar Verma Anjali Gupta MBA (FA) –

B 1121807115

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INTRODUCTION

The Kotak Mahindra group is a financial organization established in 1985 in India. Initially it was a non-banking financial company known as Kotak Mahindra Finance Limited.

In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).

Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert into a bank.

It has 16 Branches in Madhya Pradesh , head office in Indore.

“LET’S MAKES MONEY SIMPLE”

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OBJECTIVES

The main objective of study : To know about Kotak Mahindra Bank Have an overview of Commercial Banking Financing Products To look and get experience of how the bank finance to the customer, the

terms and conditions with the practical exposure Know the different commercial banking financing services offered by

the bank

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COMMERCIAL BANKING

A commercial bank is a type of bank that provides services such as accepting and lending deposits, making business loans, and offering basic investment products.

Commercial banking financing products are:

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1.Commercial Vehicle Financing

Kotak Bank is one of the leaders in the Commercial Vehicle financing segment for more than a decade they offer a wide array of product like New Vehicle Finance, Used vehicles, top-up on existing loans etc.

They caters to individual and corporate customers, Educational Institutions and other Captive customers for their financing needs for owning and running commercial vehicles.

Kotak Bank offer loan ranging from 80% - 100% of the assets value depending on customer grading .

Segments of commercial vehicle financing:i. Small Commercial Vehicles

ii. Light Commercial Vehicles

iii. Heavy Commercial Vehicle

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2. Tractor & Farm Equipment Financing

Kotak Bank entered tractor financing business on its conversion into bank and has been constantly growing in size in the tractor industry.

Today we have covered all Agri hubs of the country and are emerging as leading tractor financiers among all private sector banks. We have a widespread geographical reach to our customers

i. Loans for all brands of tractors.

ii. Loans for used tractors.

iii. Highest tractor loan disbursement amount in the market.

iv. Tractor Loans up to 90-95% of the tractor price.

v. Loans to farmers living even in deep rural areas of the country, where other financiers have not ventured out.

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3. Construction Equipment Financing

Kotak Bank have a separate subsidiary to fund the capital requirements of large and medium contractors engaged in building of roads, bridges, dams and other infrastructure projects and buyers of tippers, dumpers, backhoe loaders and cranes for the purchase of pre-owned construction equipment.

They offer loans for purchase of New Construction Equipment, Used Equipment, Top-up Loans and Customised and flexible financial solutions to customers.

Kotak Bank offer loan up to 80% - 100% of the asset value.

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SWOT ANALYSIS

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SUGGESTIONS

More Branches Customer awareness Feedback Well Trained Customer Care Staff Higher Penetration in the Untapped Market Newspaper and Agents

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CONCLUSION

Kotak Mahindra is the leading bank in the country, it provides a variety of products and services to different segment of the customer.

The general perception is that Private Banks provides better services as compared to a Government Bank. As KOTAK MAHINDRA, being a private bank provide finance to its customers at good interest rates, so that customers can easily repay the EMIs.

The banks has been very successful it enlarging its customer base during the last couple of years and competitors are ICICI,HDFC & Standard charted banks

The privilege given to the preferred customer and royal customer like home service is liked and appreciated by the customers.

It has ties up with other bank so that its customers can use other bank ATM facilities for free transactions

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LEARNINGS

The study in the form of financing procedure of products and general information of the proposal , borrower’s information, past record of customer and detailed of security mortgaged.

Financial records of the customer are audited such as KYC documents, profit and loss statement, balance sheet. The ultimate decision whether to credit to customer for the application or not and the past record or information provided by customer is true or not check through field investigated.

Roles and Responsibilities of every department for product financing

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Roles and Responsibilities

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Process

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