Kotak Mahindra Bank

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Kotak Mahindra Bank
Type Public company
Traded as BSE500247
NSEKOTAKBANK
Industry Financial service
Founded 1985 (as Kotak Mahindra Finance Ltd)
Headquarters Mumbai, Republic of India
Key people
Products Deposit accounts, Loans, Investment services, Business banking solutions, Treasury and Fixed income products etc.
Revenue IncreaseINR109.63 billion (US$1.8 billion)(2011)[1]
Net income IncreaseINR15.69 billion (US$260 million)(2011)
Website www.kotak.com

Kotak Mahindra Bank is an Indian bank and financial service firm established in 1985. It was previously known as Kotak Mahindra Finance Limited, a non-banking financial company.

In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the licence to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. As of 2011 to October 2013, it has more than 500 branches, over 1,000 ATMs and a consolidated balance sheet of approx. US$ 2.9 billion.

The Bank has its registered office at Nariman Bhavan, Nariman Point, Mumbai.

History[edit]

The company was founded in 1985 by Uday Kotak. In 2004, the company converted to a commercial bank when it received a license from the Reserve Bank of India, becoming the first Indian finance company to do so.

In 2005, it made a significant investment when it bought stressed assets from a number of banks, at full loan value of INR 10 billion.[2]

In January 2011, the bank reported a 32% rise in net profit to INR 1.88 billion for the quarter ended December 2010 against INR 1.42 billion the corresponding quarter last year.[3] Kotak Mahindra bank also reached the top 100 most trusted brands of India in The Brand Trust Report published by Trust Research Advisory in 2011.

Key milestones in the company history included;

Year Milestone
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
1991 The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995 Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. 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. The launch of Matrix Information Services Limited marks the Group's entry into information distribution.
1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.
2000 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
2000 Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.
2001 Matrix sold to Friday Corporation
2001 Launches Insurance Services
2003 Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so.
2004 Launches India Growth Fund, a private equity fund.
2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Mahindra.
2005 Launches a real estate fund
2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Securities
2008 Launched a Pension Fund under the New Pension System
2009 Kotak Mahindra Bank Ltd. Opened a representative office in Dubai

Entered Ahmedabad Commodity Exchange as anchor investor

2010 Ahmedabad Derivatives and Commodities Exchange, a Kotak anchored enterprise, became operational as a national commodity exchange.
2011 Kotak Mahindra Bank Ltd entered into a Business Cooperation arrangement with CIMB Group Sdn Bhd, Malaysia.

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