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CASE STUDY ON KOTAK MAHINDRA BANK’S INCEPTION OF
MOBILE BANKING APP KOTAK BHARAT (A NON INTERNET
BAKUP)
Varun Kesavan, Research Scholar, Palakkad, Email Id – varunkesavan@yahoo.com
INTRODUCTION
Kotak Mahindra Bank is an Indian private sector bank headquartered
in Mumbai, Maharashtra, India. In February 2003, Reserve Bank of India (RBI)
gave the licence to Kotak Mahindra Finance Ltd., the group's flagship
company, to carry on banking business.[3]
It offers a wide range of banking products and financial services for corporate
and retail customers through a variety of delivery channels and specialized
subsidiaries in the areas of personal finance, investment banking, life
insurance, and wealth management.
Kotak Mahindra Bank has a network of 1,348 branches across 675 locations
and 2,051 ATMs in the country.[4] In 2016, it was the third largest private bank
in India by market capitalization.[5]
HISTORY OF KOTAK MAHINDRA BANK
Kotak Mahindra group, established in 1985 by Uday Kotak, is one of India’s leading
financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd.
(KMFL), the Group’s flagship company, received a banking licence from the Reserve
Bank of India (RBI). With this, KMFL became the first non-banking finance company
in India to be converted into a bank – Kotak Mahindra Bank Limited (KMBL).
In a study by Brand Finance Banking 500, published in February 2014 by the Banker
magazine (from The Financial Times Stable), KMBL was ranked 245th among the

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world’s top 500 banks with brand valuation of around half a billion dollars ($481
million) and brand rating of AA+.[3] [4] KMBL is also ranked among the top 5 Best
Ranked Companies for Corporate Governance in IR Global Ranking.[5]
Established in 1985, the Kotak Mahindra group has been one of India's most reputed
financial conglomerates. 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). This approval created banking history since Kotak Mahindra
Finance Ltd. is the first non-banking finance company in India to convert itself in to a
bank as Kotak Mahindra Bank Ltd. Today, the bank is one of the fastest growing
bank and among the most admired financial institutions in India.
The bank has over 323 branches and a customer account base of over 2.7 million.
Spread all over India, not just in the metros but in Tier II cities and rural India as well,
it is redefining the reach and power of banking. Presently it is engaged in commercial
banking, stock broking, mutual funds, life insurance and investment banking. It
caters to the financial needs of individuals and corporates. The bank has an
international presence through its subsidiaries with offices in London, New York,
Dubai, Mauritius, San Francisco and Singapore that specialize in providing services
to overseas investors seeking to invest into India.

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Products and Services
 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. Investment products like Mutual Funds, Life
Insurance, retailing of gold coins and bars etc are also offered. The bank follows
a mix of both open and closed architecture for distribution of the investment
products. All this is backed by strong, in-house research on Mutual Funds.
 The bank’s savings account goes beyond the traditional role of savings, and
allows us to put aside a lot more than just money. The worry-free feature of
Savings Account provides a range of services from funds transfer, bill payments,
2-way sweep through our ActivMoney feature and much more. We can place
standing instructions for investment options that can be booked through Internet
or through Phone banking services. The Savings Account thus provides for
attractive returns earned through a comprehensive suite products and services
that offer investment options, all delivered seamlessly to the customer by well
integrated technology platforms.
 Apart from Phone banking and Internet banking, the Bank offers convenient
banking facility through Mobile banking, SMS services, Netc@rd, Home banking
and BillPay facility among others.

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 The Depository services offered by the Bank allows the customers to hold equity
shares, government securities, bonds and other securities in electronic or Demat
forms.
 The Salary 2 Wealth offering provides comprehensive administrative solutions for
Corporates with features such as easy and automated web based salary upload
process thereby eliminating the paper work involved in the process, a dedicated
relationship manager to service the corporate account, customized promotions
and tie - ups and many such unique features. The whole gamut of investment
products and investment advisory services is available to the salary account
holders as well.
 For the business community, the bank offer comprehensive business solutions
that include the Current Account, Trade Services, Cash Management Service
and Credit Facilities. The bank’s wholesale banking products offer business
banking solutions for long-term investments and working capital needs, advice on
mergers and acquisitions and equipment financing. To meet special needs of the
rural market, the bank has dedicated business offerings for agricultural financing
and infrastructure. Its Agriculture Finance division delivers customised products
for capital financing and equipment financing needs of our rural customers.

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 For financial liquidity the bank offers loans that meet personal requirements with
quick approval and flexible payment options. To complete the personal financial
offerings space, the bank now offers Kotak Credit Card which is a hassle-free,
transparent product that also happens to be the first vertical credit card in the
industry.
 Kotak Mahindra Bank addresses the entire spectrum of financial needs of Non-
Resident Indians. The bank has tie-up with the Overseas Indian Facilitation
Centre (OIFC) as a strategic partner, which gives them a platform to share their
comprehensive range of banking and investment products and services for Non
Resident Indians (NRIs) and Persons of Indian Origin (PIOs). Their Online
Account Opening facility and Live Chat service helps to get in touch at the
comfort of homes and at 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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Timelines
Year Milestone
1985 Kotak Mahindra Finance Limited commences bill discounting business
1987 Kotak Mahindra Finance Limited enters leasing and hire purchase business
1990 Starts the auto finance division for financing passenger cars
1991 Launches investment banking business
1992 Enters the funds syndication business
1995
Commenced joint venture with Goldman Sachs Group Inc.
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.
1998 Launches mutual fund through Kotak Mahindra Asset Management Company (KMAMC).
2000 Kotak Securities launches online broking business (now www.kotaksecurities.com[6]
).
2001
Launches insurance business, partners Old Mutual from South Africa to form Kotak
Mahindra Old Mutual Life Insurance Ltd.
2003
Kotak Mahindra Finance Ltd. (KMFL), the group's flagship company, receives banking
license from the Reserve Bank of India (RBI). With this, KMFL becomes the first non-
banking finance company to be converted into a commercial bank - Kotak Mahindra Bank
Ltd.
2004 Enters alternate assets business with the launch of a private equity fund.
2005 Kotak Mahindra Group realigns joint venture in Ford Credit; takes 100% ownership of

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Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells its
stake in Ford credit Mahindra to Ford.
2005 Launches a real estate fund
2006
Buys out Goldman Sachs' equity stake in Kotak Mahindra Capital Company and Kotak
Securities Ltd.
2008 Launched a Pension Fund under India's National Pension System (NPS)
2009
Kotak Mahindra Bank Ltd. opens a representative office in Dubai
Kotak Mahindra Bank Ltd. becomes anchor investor in Ahmedabad Commodities
Exchange (ACE)
2015 ING Vysya Bank has merged with Kotak Mahindra Bank with effect from 1 April 2015.[7]
COMPETITORS
ABOUT KOTAK MAHINDRA BANK’S BHARAT APP
Kotak Mahindra banks’ the fourth largest private sector bank in the country and the
first bank in India to launch an offline mobile banking app called” Kotak Bharat” is a
Kannada app which enables the customers to use the application without the backup
of internet connectivity, according to the convenience of bank’s loyal & fruitful
customers.

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THE MERITS OF KOTAK BHARAT APP
1. It works without the backup of internet connectivity.
2. It enables the customer to access their savings or current accounts and credit
cards from anywhere
3. Equipped to carry out 25 banking transactions including balance enquiry,
mobile/DTH recharge and fund transfer.
4. Available in English, Gujarati, Hindi, Kannada, Marathi & Tamil.
5. It also equips the customers to avail the services of applying for government
scheme Pradhan Mantri Suraksha Bhima Yojana and Pradhan Mantri Jeevan
Jyoti Bhima Yojana.
6. Kotak Mahindra bank is India's first bank to achieve this distinction, which
encourages cashless transactions by enabling customers to transfer up to rs
2,500 per day.
7. No PIN or password is required to access this app.
8. Linkage of Aadhaar (UID) to bank account.

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STRATEGIC ADVANTAGES TO KOTAK MAHINDRA BANK AFTER
INCEPTION OF KOTAK BHARAT APPS
1. Kotak bank has clocked rs.1,700 crore in mobile banking transactions. In the last
one year, the bank grew by 300 percent and 30 percent of banks customer base
uses mobile banking."
2. Kotak Mahindra bank is going to be a strong and rigid player in terms of
innovative technologies by all means.
3. Kotak Mahindra banks innovative technology is going to create a new era of
digital marketing and also giving cut throat competition to its competitors by all
modes.
4. Indusind bank and ICICI banks are the top private sector banks in the country in
terms of innovative techniques, but now the conditions are going to reciprocate in
terms of customer base enhancement levels, customer satifaction level, overall
profit and even sales level, since the inception of Kotak Mahindra’s banks Bharat
app.

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QUESTIONS
1. What technology can be adopted by Kotak Mahindra Bank in future course
of action?
2. What are the upcoming future challenges for Kotak Mahindra Bank?

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REFERENCES
1. https://en.wikipedia.org/wiki/Kotak_Mahindra_Bank
2. http://www.kotak.com/personal-banking/convenience-banking/mobile-
banking.html
3. http://www.moneycontrol.com/news/business/kotak-rolls-out-mobile-
banking-appno-internet_3564141.html
4. http://info.shine.com/company/kotak-mahindra-bank-ltd/1784.html
5. http://www.business-standard.com/article/news-ians/kotak-mahindra-bank-
launches-offline-mobile-banking-app-115101301128_1.html
6. http://economictimes.indiatimes.com/industry/banking/finance/banking/kot
ak-rolls-out-mobile-banking-app-with-no-internet/articleshow/49335564.cms
7. http://timesofindia.indiatimes.com/business/india-business/Kotak-rolls-out-
mobile-banking-app-with-no-Internet/articleshow/49335381.cms
8. http://www.kotak.com/personal-banking/convenience-banking/sms-
banking.html