[ D O M E S T I C
S U R V E Y
|
I N D I A ]
Kotak Mahindra
Bank Ltd Orbis Financial
Corporation Ltd
Kotak Mahindra Already has an enviable reputation in the ser-
vicing of foreign clients are regularly scores highly in the Global
Custodian Agent Bank in Emerging Markets (ABEM) survey.
While the bank’s overall score, 6.27, remains comfortably in
the ‘Very Good’ range, category scores are off last year’s rather
stellar highs. Its highest category score this year is for Asset
Servicing. At 6.48, this represents a fall of 0.36 points since last
year’s survey.
At a question level, the highest scores are recorded for accu-
racy and timeliness of dividend notification and crediting (6.58)
and timeliness and accuracy of valuations (6.50). At the other
end of the scale, Kotak scores 5.57 for effectiveness of handling
settlement, custody and asset servicing for non-domestic secu-
rities and 5.75 for quality of shareholder recordkeeping services.
Nevertheless, a score above 5.50 suggests broad client satis-
faction with the service received. One local client comments:
“Kotak has the best online margin maintenance in the market.” Orbis accounts for some 12% of responses in this year’s India
domestic custody services and as a result qualifies for a full write
up this year. Its category scores are impressive, exceeding the
market average in nine of the ten service categories and match-
ing that average in the Relationship Management and Client
Service.
Client comments single out different aspects of service for
praise. Reporting is one area where Orbis has been investing
over the past year and this is recognised by one investment
advisory firm. “The reporting portal is quite flexible and our
end-clients are quite happy,” says the company, adding that
“Exceptional cases are handled quite well. There is a dedicated
contact, and a comprehensive on-boarding process.” Another
client points to “a supportive, client-oriented back office team,
which resolves issues on time.” The group’s lowest score at a
question level is for competitiveness of fees charged, but at 6.39,
this is still impressive.
TABLE 1: SERVICE AREA SCORES VERSUS MARKET AVERAGE
TABLE 1: SERVICE AREA SCORES VERSUS MARKET AVERAGE
Category Kotak
Mahindra India
average Difference Category Orbis
Financial India
average Difference
Relationship Management and Client Service 6.21 6.57 -0.36 Relationship Management and Client Service 6.56 6.57 -0.01
Cost and Value Delivered 6.23 6.33 -0.10 Cost and Value Delivered 6.48 6.33 0.15
Settlement and Cash Management 6.41 6.54 -0.13 Settlement and Cash Management 6.58 6.54 0.04
Asset Servicing 6.48 6.49 -0.01 Asset Servicing 6.61 6.49 0.12
Special Operational Requirements 5.57 3.24 2.33 Special Operational Requirements 6.71 3.24 3.47
Operational Reporting 6.29 6.46 -0.17 Operational Reporting 6.64 6.46 0.18
Technology 6.30 6.31 -0.01 Technology 6.52 6.31 0.21
Fund and Unit Accounting and Valuation (if used) 6.31 6.43 -0.12 Fund and Unit Accounting and Valuation (if used) 6.64 6.43 0.21
Trustee and Administration Services (if used) 5.86 6.38 -0.52 Trustee and Administration Services (if used) 6.77 6.38 0.39
Reputation and Asset Safety 6.43 6.58 -0.15 Reputation and Asset Safety 6.77 6.58 0.19
OVERALL WEIGHTED AVERAGES 6.27 6.27 0.00 OVERALL WEIGHTED AVERAGES 6.61 6.27 0.34
TABLE 2: HIGHEST AND LOWEST QUESTION SCORES
TABLE 2: HIGHEST AND LOWEST QUESTION SCORES
Top 5 question scores Score Top 5 question scores Score
Accuracy and timeliness of dividend notification and crediting 6.58 Quality of shareholder recordkeeping services 6.87
Timeliness and accuracy of valuations 6.50 Accuracy of valuations and accounting for non-domestic securities 6.86
Effectiveness in matching and settlement rates 6.46 Knowledge and responsiveness of personnel 6.82
Timeliness of resolution of failed trades 6.46 acy of valuations and accounting for non-domestic securities 6.79
Commitment to the custody and securities servicing business 6.43 Accuracy and timeliness of dividend notification and crediting 6.78
Bottom 5 question scores Score Bottom 5 question scores Score
Accuracy of alternative investment valuations 6.00 Competitiveness and flexibility of deadline for same-day cash movements 6.47
Quality of administration services 6.00 Willingness and ability to customise reporting 6.47
Knowledge and responsiveness of personnel 5.75 Ease of use and comprehensiveness of client facing technology 6.47
Quality of shareholder recordkeeping services 5.75 Accuracy of alternative investment valuations 6.46
Effectiveness of handling settlement, custody and asset servicing for non-domestic securities 5.57 Competitiveness of fees charged 6.39
Summer 2017
globalcustodian.com
61