download-pdfAnnual Report 2019-20

Business Overview

Provides a complete bouquet of deposit, transaction services and lending products for retail customers, small businesses, NRIs and retail institutions, backed by innovative, digital-first solutions

Key Differentiators
  • Focussed on building a stable, retail deposit base. As on 31st March, 2020, CASA ratio stood at 56.2% of total deposits – among the highest in the industry. CASA and TDs below ₹ 5 crore constitute 86% of total deposits
  • Grew its loan book prudently, with a focus on asset quality and risk adjusted returns. Expanded its footprint in Home Loans and Loans against Property (LAP) to cover over 150 cities and towns across India. Grew its market share in consumer finance by 124% on a YoY basis, and saw strong 26% YoY growth in credit card spends
  • Continued to see strong growth and adoption of digital channels, payments and products. Introduced new channels like Keya chatbot and augmented existing channels with more features and services. For the 3rd year in a row, the Bank has exceeded the target on digital payments set by MeitY, Govt of India
  • Launched its first international branch at the Dubai International Financial Centre (DIFC), Dubai, UAE

Caters to the diverse needs of major Indian corporate bodies, financial institutions, public sector undertakings, multinational companies, small & medium enterprises and realty businesses

Offers a comprehensive portfolio of products and services including working capital financing, medium term finance, export credit, transaction banking, custody services, debt capital markets, forex and treasury services

Key Differentiators
  • Robust risk management practices have ensured that credit costs have been well controlled and NPA ratios are among the lowest in the industry
  • Integrated Corporate and Investment Banking approach to top conglomerates and corporates has helped deepen relationships and increase wallet share with these clients
  • Awarded the ‘Best Corporate & Investment Bank – India’ by Asiamoney for the third time in the past four years
  • Focus on Transaction Banking has ensured high cross-sell and a healthy mix of non-credit income in overall income
  • Continuous product innovation has helped capture and scale up new revenue streams
  • Significant investments in technology projects is underway to help in better client delivery and to improve digital focus

The Custody business continued to grow both in terms of AUC as well as new clients added during the year under review

The Bank continues to be one of India’s largest local custodians in spite of all the challenges faced by the listed markets in the past 6-12 months

It on-boarded a number of marquee FPIs, AIFs and PMS clients during the year who started using its Custody, Clearing and Fund Accounting solutions

The Bank also implemented a new Fund Accounting software during the year with minimal disruption to clients and expects this to be a good driver of new business as it goes forward

Plays a significant role in meeting financial inclusion goals and financing deep into ‘Bharat’

Key Differentiators
  • Dives deep into rural pockets of the economy to finance food and agro-processing segments, tractors, light commercial vehicles, construction equipment, and small & medium enterprises
  • One of the largest dedicated and diversified agri sectoral lenders among private banks
  • Offers a range of products to bridge the rural-urban divide and contribute to India’s growth story

One of the oldest and most respected wealth managers in India, continuously striving to be the preferred partner for its client families for wealth creation and preservation

Key Differentiators
  • Manages wealth for 50 percent of India’s top 100 families (Source: Forbes India Rich List 2019)
  • Offers a comprehensive and holistic platform covering the entire gamut of financial services for its UHNI and HNI clients
  • With over 20 years of experience of the Kotak Group in the wealth management industry, it has seen different market cycles and has maintained its leadership position due to its in-depth understanding of clients’ requirements, asset classes and the risks associated with each
  • Its unique model is based on the key pillars of open architecture, institutional support and non-conflicting approach towards client portfolios

Looks at potential turnaround cases on the basis of genuine borrower profile and backed by commensurate cash flows and collaterals

Key Differentiators
  • One of the few Indian banks providing vital financing required for getting stressed companies back to mainstream banking

Offers finance in the form of loans for the entire range of passenger cars, multi-utility vehicles, pre-owned cars and two-wheelers

Provides complete financing solutions through a single window to car dealers for their working capital and infrastructure setup requirements in the form of inventory funding and term loans

Primarily in the lending business comprising lending against select securities, lending to the real estate sector and corporates, and structured financing. Also holds certain strategic investments

The real estate division lends to various developers across the entire spectrum of asset classes from residential, commercial to retail

The structured finance team offers one of the most trusted and dedicated platforms in the country with expertise in structuring complex transactions, thereby broadening the access to capital

Key Differentiators
  • Well positioned to harness all opportunities in the current economic environment

One of the most trusted brands in the life insurance industry with a ‘Customer First’ approach, ensuring superior experience throughout the customer journey

Core purpose of the company is “To add value to the lives of people through financial instruments of protection and long-term savings”

Brand promise of the company is “We believe sharing multiplies joy and divides sorrow. And people should never walk alone. Hum hain… hamesha”

Balanced product mix (Traditional and ULIPs) and balanced distribution mix (Bancassurance, Agency, Direct and Digital Channels, and Group or Institutional Businesses)

Creating value for all stakeholders through continuous improvement in efficiencies

Significant development in digital capabilities and extensive digital adoption across the areas of sourcing, underwriting, customer servicing and engagement, and processes

Key Differentiators
  • Among the best in the industry on business health parameters like persistency, conservation, surrender retention and among the lowest customer complaints
  • Customer Relationship NPS score of +10 as on December 2019
  • Employee engagement score of 73, among the best in the industry, accompanied by significant reduction in attrition trends, accompanied by significant reduction in attrition trends
  • Consistently among the best fund performance
  • Large number of distribution tie-ups across banks, corporate agents, brokers, small finance banks, payment banks and digital distributors
  • Consistently among the largest recruiters of individual agents in the industry
  • High vintage of senior management team – over 11 years

Offers a wide range of protection solutions covering private & commercial vehicles, health, home and commercial insurance. Well diversified portfolio with 57% motor and 43% non-motor insurance products

High focus on digital tools and platforms for ease of doing business, from acquisition to policy issuance, servicing and claims settlement

Key Differentiators
  • Among the youngest general insurers, with a 44% growth in business and 151% growth in number of policies sold for FY 2019-20
  • Focussed on quality of business with a Loss Ratio of 68.8%, among the best in the industry
  • Customer-centricity at its core. Among the Top 3 general insurers in terms of least number of complaints to the Ombudsman and a healthy claim settlement ratio of 95%

Offers schemes that cater to investors with varying risk-return profiles

Diversified product portfolio across a wide range of equity, debt and exchange traded funds (ETFs)

Key Differentiators
  • One of the fastest growing AMCs in the country within the top 10 fund houses ranked by Quarterly Average Assets Under Management (QAAUM)
  • Market share in QAAUM has grown to 6.89% in Q4FY20 from 6.13% in Q4FY19 and 5.04%, 3 years ago

A leading secondary market broking firm, offering services to retail and institutional investors

Key Differentiators
  • An increase in the active client base from 4.37 lakh to 5.71 lakh, driven by healthy acquisition of clients and analytics
  • Successfully scaled up the Commodity broking business during the year
  • Free Intraday Trading (FIT) launched last year gained momentum and now contributes to more than 40% of Kotak Securities’ Options trade volume in the retail segment
  • With the help of its digital account opening mobile app, the year under review saw more than 67% of the accounts being opened digitally
  • Trading volume through its mobile app – Kotak Stock Trader – saw a growth of more than 128%
  • During the year, successfully set up a disaster recovery site in Chennai to ensure seamless trading experience for customers in case of any contingency at the company’s primary site in Mumbai
  • Improved digital engagement with clients by launching the “next best action” engine. Client genomes are created with the help of analytics, with personalised campaigns on the basis of portfolio, trading patterns and predictive models. More than 100 automated trigger-based communications are sent to clients in real-time, on the basis of market events such as news, price movements, and research calls. In the last 2 quarters, the contribution to the firm’s revenue has been greater than 1.5%.

Leading investment banking firm with leadership across capital markets and advisory products

Key Differentiators
  • Advised on 13 domestic and cross-border transactions with a cumulative value of about USD 7.9 billion in FY 2019-20
  • Raised over ₹584 billion across equity capital market products through 12 issuances – led the largest NBFC QIP in India for Bajaj Finance (₹85 billion); the then largest rights issue in India for Vodafone Idea Ltd. (₹250 billion); and the largest private sector IPO ever in India for SBI Cards & Payment Services Ltd. (₹103 billion) in FY 2019-20

Growing its business successfully across six verticals – Private Equity, Realty Fund, Infrastructure Fund, Listed Equity Strategies, Special Situations Credit Fund, and Investment Advisory: Private Clients – all led by independent investment teams

Managing funds with flexible mandates to participate across credit lifecycles of companies and projects by providing unique solutions for financing gaps in the industry

Key Differentiators
  • Among select alternative asset managers in India to be present across these six asset classes and managing a large number of active funds in these asset classes
  • Among select real estate fund managers to have completed a full lifecycle of four real estate funds in India
  • Strong partnerships with marquee investors across multiple strategies
  • Strong advisory capability for private clients across Equities, Fixed Income and Alternatives with complete alignment of interest

Caters to the development of India’s infrastructure sector by providing long tenor funding to projects that have completed at least one year of operation

Key Differentiators
  • Carefully treading adverse macro-environment, maintaining the existing book and nil delinquencies
  • Continued to focus on core infrastructure sectors like Power and key social infrastructure sectors like Education and Healthcare

Acts as a business correspondent to Kotak Mahindra Bank with over 300 branches in rural and semi urban India

Sources women-centric credit products to propagate financial inclusion and livelihood development

Key Differentiators
  • Reaching out to bottom-of-the-pyramid households with a customer base of 6.54 lakh, up by 52% in FY 2019-20
  • Majority of loans managed by BSS are to women engaged in agriculture and allied activities
International subsidiaries with offices in New York, London, Dubai, Abu Dhabi, Mauritius, Singapore. Key businesses include:

India-bound asset management, investment advisory and alternative assets

India-bound institutional equities and prime broking

Global bond trading and proprietary investments

International wealth management for private clients

Key Differentiators
  • Over 25 years of international presence with robust regulatory licensing and authorisations
  • Strong domain knowledge with a deep understanding of global practices and investor preferences
  • Wide network of large institutional clients, global distributors, and key partnerships from major geographies including Japan, Europe, the US, and the Middle East

A subsidiary of Kotak Mahindra Asset Management Co. Ltd. (KMAMC), appointed as a Pension Fund Manager (PFM) by the Pension Fund Regulatory and Development Authority (PFRDA), in April 2009

Manages nine diversified schemes across asset classes

Key Differentiators
  • Second-highest growth in AUM among private sector Pension Fund Managers of 19.6% YoY
  • Total AUM in NPS fast approaching ₹1,000 crore (₹976 crore as on 31st March, 2020)