1

CHAPTER - I INTRODUCTION
Non Banking Financial Institutions play a crucial role in broadening access to financial services, enhancing competition and diversification of the financial sector. RBI report on trends in banking, 2005 Non Banking Financial Companies (NBFCs) have come a long way from the era of concentrated regional operations, lesser credibility and poor risk management practices to highly sophisticated operations, pan-India presence and most importantly an alternate choice of financial intermediation (not an alternate choice of banking as NBFCs still operate with lots of limiting factors, which make them noncomparable to banks). It is true that the difference between commercial banks and NBFCs is getting increasingly blurred as NBFCs are today present in almost all the segments of financial sector save cheque issuance and clearing facility. NBFCs are now recognized as complementary to the banking system capable of absorbing shocks and spreading risks at times of financial distress. The Reserve Bank of India (RBI) also recognizes them as an integral part of the financial system and is trying to improve the credibility of the entire sector. Today, NBFCs are present in the competing fields of vehicle financing, hire purchase, lease, personal loans, working capital loans, consumer loans, housing loans, loans against shares, investments, distribution of financial

2 products, etc. More often than not, NBFCs are present where the risk is higher (and hence the returns), reach is required (strong last-mile network), recovery has to be the focus area, loan-ticket size is small, appraisal & disbursement has to be speedy and flexibility in terms of loan size and tenor is required. The key-differentiating factor working in favour of NBFCs is service. Today, a borrower is looking for more convenience, quick appraisal & decision-making, higher amount of loan-to- value and longer tenor. Though banks are not behind on the service aspect, they are largely limited to urban centres. When it comes to semi-urban and rural centres, particularly where the banking culture still not fully developed, NBFCs enjoy an edge over banks. However, even in the urban areas, NBFCs have created niches for themselves, which are often neglected by banks e.g. non-salaried individuals, traders, transporters, stock brokers, etc, and all these categories are growing at a rapid pace.

COMPANY PROFILE
KOTAK MAHINDRA GROUP 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 around Rs.1,700 crore and employs over 4,000 employees in its various businesses. With a presence in 74 cities in India and offices in New York, London, Dubai and Mauritius, it serves to customer base of over 5,00,000. 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). KEY GROUP COMPANIES

Kotak Mahindra Bank: The Kotak Mahindra Groups flagship company, Kotak Mahindra Finance Ltd which was established in 1985,

4 was converted into a bank Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank.

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, is a strategic joint venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP.

Kotak Mahindra Primus: Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra Bank Ltd and Ford Credit International Inc., (USA) formed to finance all non-Ford passenger vehicles.

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).

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.

5 KOTAK SECURITIES LIMITED Kotak Securities Limited an affiliate of Kotak Mahindra Finance Limited, is the stock broking and distribution arm of the Kotak Mahindra Group. Set up in 1994, with significant minority equity participation from Goldman Sachs (25per cent), Kotak Securities is a corporate member of both the Bombay Stock Exchange and the National Stock Exchange of India Limited. Its operations include stock broking and distribution of various financial products - including private and secondary placement of debt and equity, mutual funds, fixed deposits. Currently, Kotak Securities is one of the largest broking houses in India with a wide geographical reach spanning eleven Indian cities as well as offices in the USA, UK and the Middle East through its affiliates. Kotak Securities' core strengths are its expertise in equity research and a wide retail distribution network. It has a full-fledged research division involved in macro-economic studies, industry and company-specific equity research, with analysts specialising in particular economic sectors and large cap stocks. Kotak Securities has also set up a comprehensive retail distribution system to deal with a variety of clients and products. This system includes its own sales staff and a retail network spanning the country. Kotak Securities

6 has been rated number one in terms of retail distribution of public offerings for the years 1996 and 1997 by Prime Database, the authoritative information resource on the Indian financial markets. In addition, Euro money 1996 voted Kotak Securities as the 'Most Trusted Securities House' in India. KOTAK SECURITIES HAS FIVE MAIN AREAS OF BUSINESS:

Institutional Business: This division primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and Global Depository Receipts). The division also incorporates a comprehensive research cell with sectoral analysts who cover all the major areas of the Indian economy.

Private Client Services: Private Client Services (PCS) is a special investment division for High Net-worth individuals, Non-Resident Indian investors, trusts, corporates and banks. The investment product range at PCS is among the widest in the country and covers debt and equity, mutual funds and specialised structured investment products.

Client Money Management: This division provides professional portfolio management services to high net-worth individuals and corporates. Its expertise in research and stock broking gives the Company the right perspective from which to provide its clients with investment advisory services.

Retail distribution of financial products: Kotak Securities has a comprehensive retail distribution network, comprising approximately 7000 agents, 13 branches and over 20 franchisees across India. This network is used for the distribution and placement of a range of financial products that includes company fixed deposits, mutual funds, Initial Public Offerings, secondary debt and equity and small savings schemes.

Depository Services: Kotak Securities is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Since it is also in the broking business, investors who use its depository services get a dual benefit. They are able to use its brokerage services to execute transactions and its depository services to settle these.

Approved intermediary under the Securities Lending Scheme 1997: Kotak Securities has been granted registration to act as an Approved Intermediary under the Securities Lending Scheme, 1997.

8 Competitors: Reliance Money ICICI Direct Angel Broking Firm Geogit Securities Ltd. Religre Anand Rathi Securities Motilal Oswal Securities And Many More Products Offered: Easy Equity Easy IPO Easy Derivatives Easy Mutual Fund Easy Insurance

9 Portfolio Management Services

CHAPTER - II REVIEW OF LITERATURE

SWOT analysis is a basic technique that is often used in strategic planning, improving company success, organizational development and identifying competitive advantage. A tool for auditing an organization and its environment. First stage of planning; helps to focus on key issues. Role of SWOT is to take the information from the environmental scan and separate it into internal and environmental scan and external issues. Once this is completed, SWOT determines if the information indicates something that will assist the information indicates in accomplishing its objectives or if it organization in accomplishing its objectives or if it indicates an obstacle that must be overcome or indicates an obstacle that must be overcome or minimized to achieve desired results. Swot stands Strengths, Weakness, Opportunities, and Threats. Strengths:

10 Internal to the unit; are a units resources and capabilities that can be s and capabilities that can be used as a basis for developing a competitive advantage; strength used as a basis for developing a competitive advantage; strengths should be s should be realistic and not modest. Realistic and not modest. What does the company do well? What makes it better than others? What does the company have, or do, that sets it apart from its competition? These are important questions, and should include aspects of the company that made people to consider it for investment in the first place. Look at branding, image, pricing power, size, market share, financial position (balance sheet strength), etc. Here are some strength to look for:

The size of the company relative to others in the industry Balance Sheet strength Cash flows Perception of the company's products Perception of the company's brand(s) What advantages the company has over its competitors In general, what does the company do well?

11 Examples: good reputation among customers, resources, assets, people, experience, knowledge, data, capabilities Think in terms of: capabilities; competitive advantages; resources, assets, people (experience, knowledge); marketing; quality; location; accreditations, qualifications, certifications; processes/systems. Weaknesses: Now that we have determined how wonderful the company is, it's time to look for the weaknesses. Internal force that could serve as a barrier to maintain or achi internal force that could serve as a barrier to maintain or achieve eve a competitive advantage; a limitation, fault or defect of the un a competitive advantage; a limitation, fault or defect of the unit; weaknesses it; weaknesses should be truthful so that they may be overcome as quickly as possible should be truthful so that they may be overcome as quickly as possible. The same questions should be asked when looking for weaknesses. What does the company do poorly, or not so well? What are other companies doing better? What is keeping the company from greater success. It's important that customers don't gloss over this section. SWOT analysis is a brainstorming effort, so don't discount anything that comes to

12 mind. If customers perceive a weakness, list it. The weakness customers fail to list today could be why customersr investment turns out poorly next year.

13 Some weaknesses to look for:

Deteriorating balance sheet Poor perception of company's brand(s) and/or products Advantages other company's have? Lack of management or other employee talent In general, what does the company do poorly?

Examples: gaps in capabilities, financial, deadlines, morale : gaps in capabilities, financial, deadlines, morale Think in terms of: disadvantages; gaps in capabilities; lack of competitive strength; reputation; financial; timescales/deadlines;

morale/leadership; accreditations; process/systems Opportunities: Any favorable situation present now or in the any favorable situation present now or in the future in the external environment. Then opportunities is to identify areas of business we think the company is looking to enter, or should be looking to enter. The opportunities are to gain market share from competitors, or grow the company's market to new customers.

14 But there are more than just external opportunities. There are opportunities within a company that should be considered. Can the company combine product lines to increase sales? Maybe the company has duplicate costs that can be streamlined. Companies can always find ways to do things better. Some opportunities to look for:

New markets for products Financial or legal trouble for competitors New technologies the company could adopt Changes in regulatory / tax burdens Strategic investments Internal efficiencies

Examples: unfulfilled customer need, arrival of new technologies, loosening of regulations, global influences, economic boom, demographic shift economic boom, demographic shift. Where are the good opportunities facing you? Where are the good opportunities facing What are the interesting trends you are aware of? What are the interesting trends you are Think in terms of: market developments; competitor vulnerabilities; industry/lifestyle trends;; geographical; partnerships

15 Threats: External force that could inhibit the maintenance or attainment of a competitive advantage; any unfavorable situation in the external environment that is potentially damaging now or in the future. Finally, we need to consider threats to the company. Again, threats can be internal as well as external. In fact, I've found that internal threats usually come first, which opens the door to external threats. Therefore, it's important to do a good threat analysis. Internal threats aren't usually classified as such, which I think is a mistake. Any internal problem is a threat to the company's well-being and should be evaluated alongside the external threats. For example, a company that relies on developing innovative products, such as Microsoft or Intel, faces the threat of losing engineering talent every day. This is an internal threat that could easily pave the way for external threats. Some possible threats are:

Internal obstacles the company is facing. Financial constraints on the company. Cash flow problems. The relative position of the company's largest competitors. Technological advances in the industry (if the company isn't keeping pace). New technologies that threaten to displace the company's products.

16 Examples: shifts in consumer tastes, new regulations, political or legislative effects, environmental effects, new technology, loss of key staff, economic downturn, demographic shifts, competitor intent; market demands; sustaining internal capability; insurmountable weaknesses; financial backing internal capability; insurmountable weaknesses; financial backing Benefits of SWOT Analysis: Scaleable Simplicity Low Cost Flexibility Collaborative Quickness Integrateable Who should be involved in the SWOT? 1. Conduct Focus Group Sessions; 2. Planning meetings Internal and external constituents to develop list of strengths, weaknesses, opportunities, threats
3. Planning committee to develop/select/ incorporate strategies

into strategic plan

17 Steps to conduct a SWOT Analysis: 1. Driving Forces (Environmental Scan data is presented) 2. Generate list of Strengths, Weaknesses, Opportunities, Threats 3. Clarification of SWOTs 4. Categorization into themes 5. Prioritization 6. Desired State & Implications to unit 7. Strategy Development 8. Strategy Selection 9. Incorporation of strategies into Strategic Plan 10. Documentation Prioritization: Reduce generated list to top 5 ideas per category? How to prioritize? Strengths that are distinctive competencies Weaknesses that are debilitating Reducing threats and maximizing opportunities

18 Identification Strategies:

External \ Internal Opportunities Threats

Strengths Explore Avoid

Weakness Exploit Confront

Criteria for formulating and adopting Criteria for formulating and adopting strategies and plans: Acceptability of decision makers, stakeholders, consumers User impact Relevance Consistency with vision, mission, and values Integration/coordination with other strategies, programs, and activities Technical feasibility Cost feasibility The BCG Growth-Share Matrix is a portfolio-planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growthshare". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The

19 growth-share matrix thus maps the business unit positions within these two important determinants of profitability. BCG Matrix

This framework assumes that an increase in relative market share will result in an increase in the generation of cash. This assumption often is true because of the experience curve; increased relative market share implies that the firm is moving forward on the experience curve relative to its competitors, thus developing a cost advantage. A second assumption is that a growing market requires investment in assets to increase capacity and therefore results in the consumption of cash. Thus the position of a business on the growthshare matrix provides an indication of its cash generation and its cash consumption.

20 Henderson reasoned that the cash required by rapidly growing business units could be obtained from the firm's other business units that were at a more mature stage and generating significant cash. By investing to become the market share leader in a rapidly growing market, the business unit could move along the experience curve and develop a cost advantage. From this reasoning, the BCG Growth-Share Matrix was born. The four categories are:

Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidates for divestiture.

Question marks - Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash comsumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

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Stars - Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation.

Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to service the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis. Under the growth-share matrix model, as an industry matures and its

growth rate declines, a business unit will become either a cash cow or a dog, determined soley by whether it had become the market leader during the period of high growth.

22 While originally developed as a model for resource allocation among the various business units in a corporation, the growth-share matrix also can be used for resource allocation among products within a single business unit. Its simplicity is its strength - the relative positions of the firm's entire business portfolio can be displayed in a single diagram.

23 CHAPTER -III RESEARCH METHODOLOGY: Research Design: Descriptive Research: This study is a Descriptive type of study. This is because the problem is to be identified and to perform SWOT Analysis. Sampling Unit Employees who has more knowledge about Kotak Securities. Sample Size: The sample size adopted for the study is 50. Sampling Method: Convenience sampling method is being adopted for collection of data from the respondents. Sampling Area: Chennai City. Data Collection Tool: A structured questionnaire is designed and it will be used to collect the data from the respondents. The questionnaire is formed with, opened ended questions.

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OBJECTIVES OF THE STUDY

Primary objective: To identify the Strengths, Weaknesses, Opportunities and Threats for Kotak Securities. Secondary Objectives: 1. To know the market penetration of Kotak Securities. 2. To Support sales activities by understanding customers' businesses better - Qualify prospective partners and suppliers 3. To Keep fully up to date on competitors' business structure, strategy and prospects 4. To Obtain the most up to date company information available

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NEED FOR THE STUDY

NBFCs' growth had been constrained due to lack of adequate capital. Going forward, capital infusion and leverage thereupon would catapult NBFCs into a different zone altogether. The sector has a lot more potential to grow BIG over the next 2 years. Potential upside could be much larger than our estimates, if the expanded capital base is adequately leveraged. So this study is mainly based on finding out the Strengths; Weaknesses, Opportunities and threats for Kotak Securities.

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SCOPE OF THE STUDY

1. This study is conducted for academic purpose 2. Provides all the crucial company information required for business and competitor intelligence needs 3. Contains a study of the major internal and external factors affecting the company in the form of a SWOT analysis as well as . breakdown and examination of leading product revenue streams 4. Data is supplemented with details on the company's history, key executives, business description, locations and subsidiaries as well as a list of products and services and the latest available company statement

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LIMITATIONS OF THE STUDY

1. The growth-share matrix once was used widely, but has since faded from popularity as more comprehensive models have been developed. Some of its weaknesses are: 2. Market growth rate is only one factor in industry attractiveness, and relative market share is only one factor in competitive advantage. The growth-share matrix overlooks many other factors iv these two important determinants of profitability. 3. The framework assumes that each business unit is independent of the others. In some cases, a business unit that is a "dog" may be helping other business units gain a competitive advantage. 4. The matrix depends heavily upon the breadth of the definition of the market. A business unit may dominate its small niche, but have very low market share in the overall industry. In such a case, the definition of the market can make the difference between a dog and a cash cow. 5. While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing a corporation's business portfolio at a glance, and may serve as a starting point for discussing resource allocation among strategic business units.

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CHAPTER - IV ANALYSIS AND INTERPRETATION Table: 1 BCG Matrix for Kotak Securities: Market Share High Cash Generation High Star Portfolio Management Services Easy Mutual Fund Easy Derivatives Easy Equity Cash Cow Low

Question Mark Easy IPO

Low Star:

Dog Easy Insurance

Portfolio Management Services: The Portfolio Management Services combines competent fund management, dedicated research and technology to ensure a rewarding experience for its clients. So customers are very much interested in investing portfolio management services. This can be soon moved into cash cows. Easy Mutual Fund: Everyone wants to diversify the risk. So they prefer investing in mutual funds. Easy Derivatives: Since most of the people are not ready to take risk they are going for easy derivatives.

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The derivatives seminars taken by educate new entrants in the derivatives market to be more equipped with knowledge and techniques. Once they have the knowledge of investing in derivative instruments their daily derivative reports will provide customers with strategies that may yield good returns for them. Easy Equity: Investing in equities was never so easy. As the Best broker in India* Kotak Securities products and services are focused at making investments in equities as simple as writing a cheque. Kotak Securities in house research team is among the best in the industry and they have years of experience in the financial markets. They scan through the plethora of stocks and find the scripts that have a high potential of providing customer good returns. Question Mark: Easy IPO: It is difficult for the people to analyze performance of a IPO. So depending on the company the investments will be made. This can be moved to star if Kotak Securities perform well.

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Cash Cow: There is no product in cash cow now, because all are in the development stage. There is a possibility that Easy Equity and Portfolio Management Services can be moved into cash cows from star. Dog: Easy Insurance: Since there are lots of options available for insurance in the market, customers are not ready to trade or invest in that. Moreover there is not much awareness about insurance. So immediate attention should be taken on insurance. 4.2 Porters Five Forces Analysis: Five Forces Analysis helps the marketer to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers i.e. one of its SBUs. Five forces analysis looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry.

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The threat of entry.

Economies of scale e.g. the benefits associated with bulk purchasing. The high or low cost of entry e.g. how much will it cost for the latest technology?

Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up?

Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects.

Will competitors retaliate? Government action e.g. will new laws be introduced that will weaken our competitive position?

How important is differentiation? e.g. The Champagne brand cannot be copied. This desensitizes the influence of the environment.

The power of buyers.

This is high where there a few, large players in a market e.g. the large grocery chains.

If there are a large number of undifferentiated, small suppliers e.g. small farming businesses supplying the large grocery chains.

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The cost of switching between suppliers is low e.g. from one fleet supplier of trucks to another.

The power of suppliers. The power of suppliers tends to be a reversal of the power of buyers.

Where the switching costs are high e.g. Switching from one software supplier to another.

Power is high where the brand is powerful e.g. Cadillac, Pizza Hut, Microsoft.

There is a possibility of the supplier integrating forward e.g. Brewers buying bars.

Customers are fragmented (not in clusters) so that they have little bargaining power e.g. Gas/Petrol stations in remote places.

The threat of substitutes

Where there is product-for-product substitution e.g. email for fax Where there is substitution of need e.g. better toothpaste reduces the need for dentists.

Where there is generic substitution (competing for the currency in your pocket) e.g. Video suppliers compete with travel companies.

We could always do without e.g. cigarettes.

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Competitive Rivalry

This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the center of the diagram. Porters Five forces Analysis.

Kotak Securities: Buyer Power: Lack of Expertise Curtails Bargaining Power Retail investors often lack the knowledge and expertise in the financial sector that calls them to approach the broking houses.

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Low Product Differentiation Proves Beneficial The retail broking services provided by the various companies is homogeneous with very low product differentiation. This allows customers to enjoy a greater bargaining power. Supplier Power Increased Dependence on IPOs There is a growing dependence of corporates on broking houses with the rising number of IPOs coming to the market. Intensity of Competition Move towards consolidation Lot of brokerage companies are moving towards consolidation with the smaller ones becoming either franchisees for the larger brokers or closing operations. Increased Focus of Banks in Retail Broking Various foreign banks like ABN Amro and others are planning to enter the Indian retail brokerage industry. Online Trading Competes with Traditional Brokerage There is an increasing demand for online trading due to consumers growing preference for internet as compared to approaching the brokers.

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Threat of New Entrants Entry of Foreign Players New forms of trading including T+2 settlement system,

dematerialization etc are strengthening the retail brokerage market and attracting foreign companies to enter the Indian industry. Threat of Substitutes Alternative Investment Options Various alternative forms of investment including fixed deposits with banks and post offices etc act as substitutes to retail broking products and services. 4.3 SWOT Analysis: In keeping with Kotak Securities' commitment to provide optimal online security for its customer to increase the safety of online trading, the Security Key solution uses the concept of a dual password system. The security key generates a dynamic and unique six-digit password every time it is switched on. The customer has to login with his ID, password and this dynamic code to be able to transact online. It is a user-friendly product enabling risk-based authentication that allows Kotak Securities to apply an appropriate level of security and reduces the chances of fraudulent practices.

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According to Mr. D. Kannan, Executive Director, Kotak Securities Ltd., "At Kotak Securities, we understand the importance of safeguarding the investments of our customers; and that is precisely what a trusted security expert, such as Entrust will do, to boost the confidence of our customers and instill trust in our brand." "Risk-based authentication - even via a Security Key - shouldn't be cost prohibitive," said Entrust Chairman, President and Chief Executive Officer, Bill Conner. "Enabling secure transactions through the online channel creates greater safety for both the organization and the customer. By offering strong authentication to its customers, Kotak proactively protects its customers and its brand online, and we applaud them for that." Mr. Ramesh Lakshminarayanan, Group Head of IT & Infrastructure, Kotak Mahindra Group, speaking about the implementation, said, "Kotak always has been attracted to the strong level of security that hardware Security Keys provide, and now that they are available at a cost efficient price from Entrust we can employ one of the strongest methods of authentication available." Separately, In 2007, the Chilean government issued a mandate - the first in the world to have a strong enforcement clause - that all financial institutions implement strong two-factor authentication to help secure electronic transfers.

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As many banks scrambled to comply, 10 of the top 16 banks in the country opted for an easy-to-use, easy-to-integrate solution from Entrust, Inc. (Nasdaq: ENTU), the Entrust IdentityGuard versatile authentication platform. The successive customer wins not only created strong momentum for the platform in Chile, but also across South America. "As banks in Chile were required to comply with the governmentissued mandate, we found the versatility, ease of use and efficiency of Entrust's strong authentication solution to be the right choice as we integrated two-factor authentication," said Sebastian Covarrubias, Manager of Marketing and Products at Banco Security. "The platform's versatility and

interoperability allows us to address both current and future needs as we evaluate the risks of the transactions our customers choose to execute with us online." During the first quarter of 2007, the Chilean government issued legislation that required banks to comply with three new rules to help protect online transactions. The first, which is already in place, mandated that the financial institutions implement two-factor authentication for all electronic transfers by January 2008. Many organizations have yet to comply and are forced to pay fines. The two remaining rules have yet to be finalized and approved.

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Trusted partner NeoSecure was instrumental in the procurement and deployment of the Entrust IdentityGuard versatile authentication platform. The value-added reseller - a MSSP and security solutions provider that services Latin America - provided many of the banks with a turn-key solution that involved production of the grid cards and other professional services to help facilitate a seamless integration into the banks' secure environments. "We've enjoyed a strong, successful relationship with Entrust for many years," said Eduardo Diaz, Chief Executive Officer at NeoSecure. "The versatile authentication platform's mass-scale adoption in Chile marks exciting growth for Entrust, NeoSecure and the security market in South America." At the core of their Entrust IdentityGuard deployment, Banco Security leveraged the versatile authentication platform's grid card solution to help verify the identities of over 17,600 customers. Banco Security has nine offices in Santiago, Chile, four regional branches, but predominantly provides its services through electronic channels, which made the need for strong multifactor authentication a priority. "Two of our biggest competitors already were entrenched in the Chilean market for enterprise authentication when this regulation was published, but the financial institutions needed a solution that could be deployed quickly and be intuitively used by their customers, as well as be cost

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effective for deployment on a mass scale," said Entrust Chairman, President and Chief Executive Officer Bill Conner. "We applaud these elite banks, as well as our partner NeoSecure, for proactively implementing a solution that can scale to meet the growing threats to their customers. The door now is open to put even greater security measures in place, such as digital signatures and zero-touch fraud detection." In 2006, Chilean-based Banco Santander was the first to deploy Entrust Identity Guard through NeoSecure, even before the Chilean government mandates were in place. The world's 12th-largest bank, Banco Santander increased their Entrust Identity Guard grid authentication plans to include more than 680,000 customers. Part of the Santander Group, one of the largest financial groups in the world, Banco Santander originally considered expensive competitive third- party one-time-passcode (OTP) hardware tokens, but concluded that this option would have been far too expensive for their customers. The mandate, outlined in the document titled "Chapter1-7, Electronic Transfers of Information and Funds," was enacted by the Superintendencia de Bancos e Instituciones Financieras Chile, which regulates banks and financial institutions in Chile. From an enforcement perspective, it is one of the strongest regulations in the world to help financial institutions better secure their customers.

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"While other governments and regulatory bodies around the world have mandated some kind of stronger authentication for financial institutions, the Chilean regulation definitely has the most effective 'teeth' for motivating compliance and the use of something stronger than a homegrown solution," added Conner. "It's one of the most progressive mandates we've seen in the authentication space. Strengths: Kotak Securities' core strengths are its expertise in equity research and a wide retail distribution network. It has a full-fledged research division involved in macro-economic studies, industry and company-specific equity research, with analysts specialising in particular economic sectors and large cap stocks. 9 Reasons for investing through Kotak Securities: Flat Brokerage @ Rs. 9/Kotak securities latest offering, Kotak Flat has introduced the international trend of charging brokerages on a per trade basis for the first time in India. As per the latest survey conducted by Starcomm more than 50% of the surveyed audience felt that the fixed percentage system of charging brokerages is not fair and it is this Philosophy that reflects in the Kotak Flat simple pricing.

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Rewards and Recognitions Kotak Securities Ltd. is Indias No. 1 stock broking house. We have won Awards at various occasions which showcases the Trust that people have in us.

Prime Ranking Award(2003-04)- Largest Distributor of IPO's Finance Asia Award (2004)- India's best Equity House Finance Asia Award (2005)-Best Broker In India Euromoney Award (2005)-Best Equities House In India Finance Asia Award (2006)- Best Broker In India Euromoney Award (2006) - Best Provider of Portfolio Management : Equities

In Depth Market Analysis and Research Our special research cell has some of India's finest financial analysts bring you intensive research reports on how the stock market is faring, when is the right time to invest, when to execute your order and more. Depending on what kind of investor you are, we bring you fundamental or basic research and technical research. Flexibility of products nce you invest with Kotak Securities, you can enjoy access to a wide range of products and services to help you make the most of your investments.

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Open an investing account with us and begin right away. Whether you are a beginner or an expert trader, we have different accounts to suit your needs. Mutual fund &IPO facility online Get access to 16 Fund Houses, you can buy, redeem swap, make systematic investment / withdrawal plans; all online without any paper work, cheques and delays. You can see the status of the orders in the order book. Also we have a mutual fund Portfolio Manager where you can see the details of gains and the yield. Portfolio Management Services As you drive towards your objective of creating wealth, you need to employ the right investment vehicles, at the right time. We give your portfolio the edge by skillfully sifting through available investment opportunities to help you reduce risk and maximize your returns; even as you are left with ample time to focus on more pressing matters. High Quality of software (KEAT): K.E.A.T is a special software that Koataksecurities.com provides its customers using which they can view live market rates of scrips on both the NSE and BSE, create a watchlist and simultaneously place orders, view order reports, research companies etc. It is a complete online trading terminal.

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Mobile trading: Kotak Securitied understand the importance of customers time and they appreciate the fact that technology can help customers to make optimum utilization of your time. It is these very reasons that customers at kotaksecurities.com bring customers the first of-it's-kind dynamic investment facility - Mobile Share Trading. The facility is exclusively designed to give customers instant access to the stock market through customers mobile phone. Phone Trading Call and Trade: Call & Trade is a service offered by Kotak Securities for its customers, which provides customers with a facility to trade over the phone. Kotak Securities provides customers a toll free number that customers can call from anywhere in India and place an order Market Size: Kotak Securities Limited is a subsidiary of Kotak Mahindra Bank Limited and is the stock broking arm of the Kotak Mahindra Group. With a market share close to 7.3%* of daily volumes, it is one of the Indias leading stock broking house. Kotak Securities processes over 300,000 secondary market trades everyday and manages a huge equity asset pool with over Rs. 3300 crore under management. Awarded the Number One Prime Ranking

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in 2004, it is one of the leading distributors of Initial Public Offers (IPO). Kotak Securities has been a distributor for some of the most successful issues in the country. It has also been the winner of many prestigious awards such as Best Performing Equity Broker in India by CNBC TV 18 Optimix Financial Advisory Awards 2008. It offers a wide range of financial products for its investors, including Stocks and Shares, IPOs, Mutual Funds and Derivatives. Kotak Securities, today, has 877 outlets in 321 cities, servicing over 4.30,000 customers. New Products Offered by Kotak Securities: Kotak Securities have been the first in providing many products and services which have now become industry standards. Some of them are: Facility of Margin Finance to the customers Investing in IPOs and Mutual Funds on the phone SMS alerts before execution of depository transactions Mobile application to track portfolios AutoInvest - A systematic investing plan in Equities and Mutual funds Provision of margin against securities automatically against shares in your Demat account. Kotak Securities have a full-fledged research division involved in Macro Economic studies, Sectoral 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.

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Kotak Securities also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL), providing dual benefit services wherein the investors can avail our brokerage services for executing the transactions and the depository services for settling them. We process more than 400000 trades a day which is much higher even than some of the renowned international brokers. Weaknesses: Customer feedback towards Kotak Securities: K-sec is acutely unable to carry out routine tasks like opening accounts, meeting up with customers/clients and responding to telephone calls. Despite opening a privilege circle account (besides having a kotak bank account and kotak life policies), i am compelled to say that k-sec is a bunch of cavalier customers who border on the juvenile when attempting to solve problems that they create in the first place. The dealer appointed to cater to customers investments (not trades) was inexperienced and incompetent. customer care is non-existent.K-sec is definitely not what Uday Kotak envisioned and the number of youngsters who walk in and out of the jobs in K-sec is a warning sign for any intending customer/client.

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Kotak securities offered me a Portfolio Management Service as an extension of my account with Kotak Bank. I agreed since they gave me an innovation of transferring all my shares from various DP accounts held by me. Made sense to have all holdings in one place, esp since I was planning on adding mutual funds to my banking account too. It has been over a month since they opened my account, yet the account is not active. I ring up the concerned managers regularly but they are young and I dont thing they understand much of what goes on in the operational side. The fact is that the other DPs have still not transferred all my share---the RM says they are reluctant to do so----is it not the job of Kotak to chase them? More-over I was not informed at the outset that there will be a delay in transfers. I had a nice Image of Kotak Securities and Bank before I dealt with them , It all went Down and I realised Good can Lure the Customers but that does not necessarily mean Good Service 1st I had given a margin money so that I would get Low brokerage, but I got the Same Brokerage as a regular joy would get after paying 750 Rs /-, after complaining what they say is Sorry it was the fault of sales person, who the hell cares about sorry and the sales person was from kotak. 2nd the User Interface is below average. I know it because I use both ICICI and Share khan. It is not very User friendly and why there should be a concept of maintaining a Minimum balance of 1000 Rs /-.

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3rd Customer Care is again below average . ICIC is expensive but the only reason I like it because customers would get somebody to listen to customersr Grevience at the end of the Day . . .. And the Biggest reason I find it incompetent , I belive a month back there was a Big fall in the Market and the kotaksecurities website was not working on calling i got the information that the website was down and they could not take order on phone too the Website came back after 2-3 Hours . This is Horrible . . . . my experience says that one should Distance himself from these kind of service provider as soo as possible and thats what I doing by closing my account . . . . Most unprofessional, inefficient and incompetent organisation. I applied for trading account on 16th March. Welcome (or unwelcome) kit was wrongly sent to Lucknow then it came to Noida. They have screwed up the application badly and their people stationed in Noida branch are a bunch of jokers. I think password for activating the account is still in not received. Frankly speaking it is a bullshit company with all nincompoops working in it. I would advise people not to get trapped in this organization for anything viz. trading account, banking account etc. etc. I do not know how Indian system allows such hopeless companies to exist. If customers visit tier website customers will find amnu accolades listed their but Alas! it is not like so. It is a shame on the part of the person who is heading this junk organization, which should be dumped into Arabian sea. Their people have taken cheques of Rs.

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50700/- for opening account and Rs. 2500/- for opening bank account in Kotak Mahindra and not even a single account is activated. Sebi/RBI should ban such type of trading organizations/banks for putting their clients to such type of harrowing experience. Opportunities: Non Banking Financial Companies (NBFCs) have come a long way from the era of concentrated regional operations, lesser credibility and poor risk management practices to highly sophisticated operations, pan-India presence and most importantly an alternate choice of financial intermediation (not an alternate choice of banking as NBFCs still operate with lots of limiting factors, which make them non-comparable to banks). It is true that the difference between commercial banks and NBFCs is getting increasingly blurred as NBFCs are today present in almost all the segments of financial sector save cheque issuance and clearing facility. NBFCs are now recognized as complementary to the banking system capable of absorbing shocks and spreading risks at times of financial distress. The Reserve Bank of India (RBI) also recognises them as an integral part of the financial system and is trying to improve the credibility of the entire sector. Today, NBFCs are present in the competing fields of vehicle financing, hire purchase, lease, personal loans, working capital loans, consumer loans, housing loans, loans against shares, investments, distribution of financial products, etc. More often than not, NBFCs are present where the risk is higher

49

(and hence the returns), reach is required (strong last-mile network), recovery has to be the focus area, loan-ticket size is small, appraisal & disbursement has to be speedy and flexibility in terms of loan size and tenor is required. The key-differentiating factor working in favour of NBFCs is service. Today, a borrower is looking for more convenience, quick appraisal & decision-making, higher amount of loan-to- value and longer tenor. Though banks are not behind on the service aspect, they are largely limited to urban centres. When it comes to semi-urban and rural centres, particularly where the banking culture still not fully developed, NBFCs enjoy an edge over banks. However, even in the urban areas, NBFCs have created niches for themselves, which are often neglected by banks e.g. non-salaried individuals, traders, transporters, stock brokers, etc, and all these categories are growing at a rapid pace. New opportunities like home equity, credit cards, personal finance, etc, are expected to take NBFCs to a new level. Growth in all these segments is sustainable at a higher rate than before given the low penetration and changing demography in the country. Secondly, 100% cover for public deposits would ensure higher credibility to the sector. Thirdly, capital had always been a limiting factor for the sector. In a booming economy and the capital market, it has been expected that these companies are now in a better position to raise capital at competitive rates to fuel their future growth plans. Fourthly, better risk management and regulatory practices, NBFCs enjoy a higher credibility today. Last but not the least, due to an established reach and

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network, NBFCs could be the favorites of the foreign financial giants to make an inroad in the country. The RBI has proposed to open the domestic market for foreign banks after FY2009 and some of the foreign banks would not hesitate to shake hands with NBFCs to hit the ground running. Kotak Securities believe that the sector is today at an inflection point and is likely to take a big leap in terms of growth and profitability going forward. NBFCs have typically grown in the southern part of the country. Most of the NBFCs have started their journey as chit-funds and then largely catering to the growing needs of individuals, forayed into much-better organized non-banking operations. Though there are no concrete reasons why NBFCs are more deep-rooted in south India, Kotak Securities understand that it is largely because of demographic patterns. Though the number of NBFCs in north India is also high, average deposit is far lower compared to south India. Other parts of the country do not have significant presence of NBFCs and are also on declining trend. Threats: The only uncertainty appears to be on how far the Fed will take its benchmark rates before it calls a halt to its tightening policy. (On balance of factors), it does appear that a tighter monetary regime is here to stay and this

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will likely prompt a re-adjustment of portfolio flows in the short-to-medium term," says K N Sivasubramanian, senior portfolio manager, Franklin Templeton. Back home, market men are expecting a hike in the reverse repo rate the equivalent of Fed rate -currently hovering at 5.75 per cent, in the near term. The threat of rising interest rates in the domestic economy seems larger than in the past two years with the narrowing interest rate differential between the US and India. Besides, while inflationary concerns persist, the domestic economy is bubbling and a big chunk of the capital expenditure planned by corporates is expected to happen over the next couple of years. "Real demand for money is yet to pick up with corporate expansion plans yet to move into a higher gear," says Prashant Jain, chief investment officer, HDFC Mutual Fund. On the supply side, banks are running out of capital to lend and deposits are not growing at a brisk rate either. And if equity markets do not look up, plans to raise capital may go awry making money even more scarce. More demand for money, and short supply would only mean the price of money or interest rates must go up further. TABLE: 2

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FREQUENCY ANALYSIS ON GENDER

Gender Male Female Total INFERENCE:

No of respondents 73 27 100

Percentage 73.0 27.0 100.0

From the above table and graph we could find that Most of the respondents in this study are male, that is 73%. Only 27% of the respondents are female. From this we could infer that it is the male who mostly works for Kotak Securities. CHART: 1 FREQUENCY ANALYSIS ON GENDER

27

73 Male Female

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AGE Below 25 25 - 50 Above 50 Total INFERENCE:

TABLE: 3 FREQUENCY ANALYSIS ON AGE No of respondents Percentage 21 21.0 67 67.0 12 12.0 100 100.0

From the above table and graph we can infer that major portion of respondents that is 67% of the respondents falls in the age group of 25-50, another 21% of the respondents falls in the age group of below25 and 12% of the respondents are belong to the age group of above 50. From this information we can conclude that major employees who responded are of age between 25 years to 50 years old. CHART: 2 FREQUENCY ANALYSIS ON AGE
67 70 60 No. of Respondents 50 40 30 20 10 0 Below 25 25 - 50 Age Below 25 25 - 50 Above 50 Above 50 21 12

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TABLE: 4 FREQUENCY ANALYSIS ON INVESTMENT LEVEL Investment level Below 5 lakhs 5 lakhs - 10 lakhs 10 lakhs - 15 lakhs Above 15 lakhs Total INFERENCE: No of respondents 54 19 19 8 100 Percentage 54.0 19.0 19.0 8.0 100.0

From the table and graph we can infer that 54% of respondents are trading with their investment less than 5 lakhs, 19% of peoples investment level fall under 5 lakhs to 10 lakhs, 19% of peoples investment fall under the category 10 lakhs to 15 lakhs, and remaining 8% of people have invested above 15 lakhs. CHART: 3 FREQUENCY ANALYSIS ON INVESTMENT LEVEL

60 50 No. of Respondents 40 30 20 10 0

54

19

19 8

Below 5 lakhs

5 lakhs - 10 lakhs

10 lakhs - 15 lakhs

Abov 15 lakhs e

Inves tment level

Below 5 lakhs

5 lakhs - 10 lakhs

10 lakhs - 15 lakhs

Abov 15 lakhs e

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TABLE :5 FREQUENCY ANALYSIS ON INCOME LEVEL Income Below 15000 15000 - 30000 30000 - 45000 Above 45000 Total INFERENCE: No of respondents 14 31 34 21 100 Percentage 14.0 31.0 34.0 21.0 100.0

From the table and graph we can infer that 14% of the respondents falls in the category of income below 15000 per month, another 31% in the category between 15000 - 30000 per month, another 34% in the category of income between 30000 45000, the remaining 21% fall in the category of the income level of above 45000. This shows that major part of respondents belongs to the high-income group category. CHART :4 FREQUENCY ANALYSIS ON INCOME LEVEL

Below 15000
14% 21%

15000 - 30000 30000 - 45000 Above 45000

31%

34%

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TABLE: 6 FREQUENCY ANALYSIS ON EDUCATION LEVEL Education Level Non graduate Graduate Post graduate Others Total INFERENCE: No of respondents 13 49 29 9 100 Percentage 13.0 49.0 29.0 9.0 100.0

From the table and graph we can infer that major part of respondents are graduates, they consists of about 49% of respondents. Other 13% belongs to non graduate, 29% consists of post graduates and remaining 9% consists of other studies. This shows that major portion of the respondents in Salem have average and above average level of education level. CHART: 5 FREQUENCY ANALYSIS ON EDUCATION LEVEL
49 50 45 No. of Respondents 40 35 30 25 20 15 10 5 0 Non graduate Graduate Post graduate Others Education level Non graduate Graduate Post graduate Others 13 9 29

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TABLE: 7 FREQUENCY ANALYSIS FOR STRENGTH

Strengths High on service aspect Strong last-mile approach Focus on recovery Easy and fast appraisal & disbursements Able to generate higher yield on assets Attained critical mass in terms of size Total Inference:

No of respondents 20 20 10 20 25 5 100

Percentage 20 20 10 20 25 5 100.0

Out of the total Strengths, 25% of the weightage goes to Able to generate high yield on assets and 20% of the weightage goes to Strong last mile approach, 10% of the weightage goes to Focus on recovery, 20% to Easy and fast appraisal and disbursements, 20% of the weightage goes to High on service aspect, 5% of the weightage goes to Attained critical mass in terms of size.

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TABLE: 6 FREQUENCY ANALYSIS FOR STRENGTH

5%

Strengths 20%

High on service aspect Strong last-mile approach

25% Focus on recovery

20%

20% 10%

Easy and fast appraisal & disbursements Able to generate higher yield on assets Attained critical mass in terms of size

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TABLE: 8 FREQUENCY ANALYSIS FOR WEAKNESS

Strengths High on service aspect Strong last-mile approach Focus on recovery Easy and fast appraisal & disbursements Able to generate higher yield on assets Attained critical mass in terms of size Total Inference:

No of respondents 20 20 10 20 25 5 100

Percentage 20 20 10 20 25 5 100.0

Out of the total Weaknesses, 31% of the weightage goes to Weak in rural market and 14% of the weightage goes to Weak credit history, 25% of the weightage goes to Largely restricted to south India market, 12% to Weaker risk management and technology systems, 11% to Too much of diversification from core business, 7% to Higher regulatory restrictions.

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CHART: 7 FREQUENCY ANALYSIS FOR WEAKNESS

7% 11%

Weakness

Weak in rural market Weak credit history. Largely restricted to the south India market

31%

12%

Weaker risk-management & technology systems Too much of diversification from core business
14% 25%

Higher regulatory restrictions

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TABLE: 9 FREQUENCY ANALYSIS FOR OPPORTUNITIES

Strengths High on service aspect Strong last-mile approach Focus on recovery Easy and fast appraisal & disbursements Able to generate higher yield on assets Attained critical mass in terms of size Total Inference:

No of respondents 20 20 10 20 25 5 100

Percentage 20 20 10 20 25 5 100.0

Out of the total Opportunities, 36% of the weightage goes to Large untapped market, both rural & urban and also geographically and 14% of the weightage goes to Demographic changes and under-penetration, 24% of the weightage goes to New opportunities in credit card, personal finance, home equity, etc, 17% Augmentation of capital and leveraging for growth, 12% to Tie-up with global financial sector giants, 6% of the weightage goes to Tie-up with global financial sector giants, Blurring gap with banks in terms of cost of funds and Securitisation, to liberate funds to fuel asset growth

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CHART: 8 FREQUENCY ANALYSIS FOR OPPORTUNITIES

Augmentation of capital and leveraging for growth Large untapped market, both rural & urban and also geographically Demographic changes and under-penetration New opportunities in credit card, personal finance, home equity, etc Tie-up with global financial sector giants 36% 14% Blurring gap with banks in terms of cost of funds Securitisation, to liberate funds to fuel asset growth

Opportunities 2% 1% 6% 17%

24%

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TABLE: 10 FREQUENCY ANALYSIS FOR THREATS

Strengths High on service aspect Strong last-mile approach Focus on recovery Easy and fast appraisal & disbursements Able to generate higher yield on assets Attained critical mass in terms of size Total

No of respondents 20 20 10 20 25 5 100

Percentage 20 20 10 20 25 5 100.0

Inference: Out of the total Threats, 38% of the weightage goes to Entry of foreign players in post-2009 scenario and 23% of the weightage goes to High cost of funds, 21% of the weightage goes to Asset quality deterioration may not only wipe out profits but also networth, 12% to Growing retail thrust within banks, 6% to the Weak financial health.

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CHART: 9 FREQUENCY ANALYSIS FOR THREATS

12%

6%

Threats

Weak financial health

23%

High cost of funds

38%

21%

Asset quality deterioration may not only wipe out profits but also networth Entry of foreign players in post-2009 scenario Growing retail thrust within banks

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CHAPTER V FINDINGS
SWOT ANALYSIS OF KOTAK SECURITIES: Strengths: High on service aspect Strong last-mile approach Focus on recovery Easy and fast appraisal & disbursements Able to generate higher yield on assets Attained critical mass in terms of size Out of the total Strengths, 25% of the weightage goes to Able to generate high yield on assets and 20% of the weightage goes to Strong last mile approach, 10% of the weightage goes to Focus on recovery, 20% to Easy and fast appraisal and disbursements, 20% of the weightage goes to High on service aspect, 5% of the weightage goes to Attained critical mass in terms of size. So the critical strengths are Able to generate high yield on assets.

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Weakness: Weak in rural market Weak credit history. Largely restricted to the south India market Weaker risk-management & technology systems Too much of diversification from core business Higher regulatory restrictions Out of the total Weaknesses, 31% of the weightage goes to Weak in rural market and 14% of the weightage goes to Weak credit history, 25% of the weightage goes to Largely restricted to south India market, 12% to Weaker risk management and technology systems, 11% to Too much of diversification from core business, 7% to Higher regulatory restrictions. So the critical weakness is Weak in rural market. Opportunities: Augmentation of capital and leveraging for growth Large untapped market, both rural & urban and also geographically Demographic changes and under-penetration

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New opportunities in credit card, personal finance, home equity, etc Tie-up with global financial sector giants Blurring gap with banks in terms of cost of funds Securitisation, to liberate funds to fuel asset growth Out of the total Opportunities, 36% of the weightage goes to Large untapped market, both rural & urban and also geographically and 14% of the weightage goes to Demographic changes and under-penetration, 24% of the weightage goes to New opportunities in credit card, personal finance, home equity, etc, 17% Augmentation of capital and leveraging for growth, 12% to Tie-up with global financial sector giants, 6% of the weightage goes to Tie-up with global financial sector giants, Blurring gap with banks in terms of cost of funds and Securitisation, to liberate funds to fuel asset growth So the critical opportunity is Large untapped market, both rural & urban and also geographically. Threats: Weak financial health High cost of funds

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Asset quality deterioration may not only wipe out profits but also networth Entry of foreign players in post-2009 scenario Growing retail thrust within banks Out of the total Threats, 38% of the weightage goes to Entry of foreign players in post-2009 scenario and 23% of the weightage goes to High cost of funds, 21% of the weightage goes to Asset quality deterioration may not only wipe out profits but also networth, 12% to Growing retail thrust within banks, 6% to the Weak financial health. So the critical threat is Entry of foreign players in post-2009 scenario BCG Matrix: Star: Portfolio Management Services: The Portfolio Management Services combines competent fund management, dedicated research and technology to ensure a rewarding experience for its clients. So customers are very much interested in investing portfolio management services. This can be soon moved into cash cows. Easy Mutual Fund:

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Everyone wants to diversify the risk. So they prefer investing in mutual funds. Easy Derivatives: Since most of the people are not ready to take risk they are going for easy derivatives. The derivatives seminars taken by educate new entrants in the derivatives market to be more equipped with knowledge and techniques. Once they have the knowledge of investing in derivative instruments their daily derivative reports will provide customers with strategies that may yield good returns for them. Easy Equity: Investing in equities was never so easy. As the Best broker in India* Kotak Securities products and services are focused at making investments in equities as simple as writing a cheque. Kotak Securities in house research team is among the best in the industry and they have years of experience in the financial markets. They scan through the plethora of stocks and find the scripts that have a high potential of providing customer good returns. Cash Cow:

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There is no product in cash cow now, because all are in the development stage. There is a possibility that Easy Equity and Portfolio Management Services can be moved into cash cows from star. Dog: Easy Insurance: Since there are lots of options available for insurance in the market, customers are not ready to trade or invest in that. Moreover there is not much awareness about insurance. So immediate attention should be taken on insurance.

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CHAPTER -VI SUGGESTIONS

They need to target in rural areas where there is a vast market. At present this a weakness for them. This can be converted to a opportunity.

Kotak Securities can achieve returns through investments in stocks of small, medium and large capitalized companies. The portfolio manager may invest in private placements or pre Follow on Public Offering (FPO) placement of listed securities.

Carefully top strengths,weakness, opportunities threats should be improved

Strengths-Able to generate high yield on assets Weakness-Weak in rural market

Opportunities-Large untapped market, both rural & urban

Threats-Large untapped market, both rural & urban

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CHAPTER -VII

CONCLUSION
By sorting the SWOT issues into the 6 planning categories one can obtain a system which presents a practical way of assimilating the internal and external information about the business unit, delineating short and long term priorities, and allowing an easy way to build the management team which can achieve the objectives of profit growth. This approach captures the collective agreement and commitment of those who will ultimately have to do the work of meeting or exceeding the objectives finally set. It permits the team leader to define and develop coordinated, goal-directed actions, which underpin the overall agreed objectives between levels of the business hierarchy.

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BIBLIOGRAPHY

BOOKS Marketing Management Principles of Marketing Marketing Research Consumer Behaviour

AUTHORS Philip Kotler Philip Kotler Tull & Donald Leon G.Schiffinan Leslie Lazer Kanuk S.P.Gupta

Fundamental of Statistics JOURNALS Business Today Business World Economic Times

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QUESTIONNAIRE l)Name 2) Gender Male Female

3) Age Below 25 25-50 4) Level of investment

Above 50

Below 5 lakhs 5 -10 lakhs 10 -15 lakhs Above 15 lakhs 5) Income (Per month) Below Rs 15,000 Rs 15,000 to Rs 30,000

Rs 30,000 to Rs 45,000 Above Rs 45,000 6) Education Non Graduate Graduate Post Graduate Others

Internal Analysis: To identify Strengths: 1. What is the market size of your company when compared to other investments companies in the industry? 2. What is your perception on the products offered by Kotak Securities? 3. What advantages the company has over its competitors? 4. In general, what does the company do well? 5. What do other people see as your strengths? 6. What would you want to boast about to someone who knows nothing about this about this organization and its work?

75 To identify Weakness: 1. What can be improved in Kotak Securities? 2. What is done poorly in Kotak Securities? 3. What should be avoided in Kotak Securities? 4. What is this organization NOT doing that you feel it should be doing? 5. If you could change 1 thing that would help Kotak Securities to function more effectively, what would you change? External Analysis: To identify Opportunities: 1. What are the New markets for the investment products? 2. What can be the possible Financial or legal trouble for competitors? 3. What are the new technologies the company can adopt? 4. What are the possible changes tat can be done in regulatory / tax burdens? 5. What are the strategic investments can be made? 6. What are the internal efficiencies in Kotak Securities? 7. In general what are opportunities to develop Kotak Securities? To identify Threats: 1. What are the financial constraints on the company? 2. Do you have any cash flow problems? If yes sate it? 3. What is the relative position of the company's largest competitors? 4. What are the technological advances in the industry? 5. What are the new technologies that threaten to displace the company's products? 6. What are the obstacles the organization face? 7. Could any of your weaknesses seriously threaten your unit?