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  1. 1. Summer Training Project Report On Customer Contact Program With Special Reference To Kotak Mahindra Bank At Patna(Bihar)A Project Report Submitted during Summer Training for the Partial Fulfillment of the Post Graduate Diploma In Management Ritesh Kumar Thakur Roll no: 10 SESSION (2010 - 2012) UNDER GUIDANCE OF PROF DR. SUJEET KUMAR SINGH United School Of Business Greater Noida 1
  2. 2. CERTIFICATEThis report entitled "Customer Contact Program With Special Reference To KotakMahindra Bank " submitted for the award of Post Graduate Diploma In Management.This work has not been submitted in part or full to this or any other institute /universityfor any degree or diploma.We found him to be hard working and sincere and we wish him success in his entirefuture endeavor. (Counter Signed) 2
  3. 3. ACKNOWLEDGEMENTThis has been my first experience in the corporate world and has been a truly learningexperience for me. The project assigned to me had a great learning potential andtremendous scope of application. There have been many people who have supported methroughout the project and I take this opportunity to thank them for their time and effort.I would begin by thanking for having the confidence in me and giving me the opportunityto undergo my summer training in this prestigious company.I am grateful to Mr. Sanjay Gupta for his support and encouragement. I am grateful toMr. Sujeet Kumar Singh, my faculty guide, without whose support and guidance, myproject would not have possible. I want to thank her profusely for her support andencouragement she gave for this project.I would like to thank my project guide Mr. Puneet Bansal for making every effort toensure that my project was truly a learning experience for me and without whose supportthe project could not be completed.I would also like to thank Mr. Ahindra Pratap Singh for giving his valuable thoughts andhelping us in understanding things better relating to the industry, which would be verybeneficial in our future aspects. Last but not the least, I would like to thank my family forconstantly encouraging and supporting me throughout my project. 3
  4. 4. DECLARATIONI hereby declare that the project report entitled “Customer Contact Program WithSpecial Reference To Kotak Mahindra Bank” is written and submitted by me (under theguidance) is my original work.The findings and interpretations in the report are based on the data collected by meduring the survey. This project is not copied from any source or other project submittedfor similar purpose.Date:12/09/2011 Ritesh Kumar ThakurPlace:Greater Noida 4
  5. 5. CONTENTSChapter no. Page no.……………………………………………………………………………………………...CERTIFICATEACKNOWLEDGEMENTDECLARATION • Company Profile • Why Customer Feedback is Important? • Major Competitors • Performance of Bank • SWOT analysis of Bank • Benefits to customers • Research Methodology • Marketing Strategies • Data Analysis and Interpretations • Major Problems faced • Issues and Challenges • Conclusion • Learnings • Questionnaires 5
  6. 6. BibliographyCOMPANYPROFILE 6
  7. 7. 7
  8. 8. KOTAK MAHINDRA BANKThe Kotak Mahindra Group was born in 1985 as KOTAK Capital Management FinanceLimited. This company was promoted by Uday KOTAK, Sidney A. A. Pinto and Kotak& Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986,and thats when the company changed its name to Kotak Mahindra Finance Limited.Kotak Mahindra is one of Indias leading financial institutions, offering completefinancial solutions that encompass every sphere of life. From commercial banking, tostock broking, to mutual funds, to life insurance, to investment banking, the group catersto the financial needs of individuals and corporate.The group has a net worth of over Rs.2000 crores and employs over 4,000 employees inits various businesses. With a presence in 60 cities in India and offices in New York,London, Dubai and Mauritius, it services a customer base of over 6, 00,000.Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between KotakMahindra Bank Ltd. (KMBL), and Old Mutual plc. At Kotak Life Insurance, we aim tohelp customers take important financial decisions at every stage in life by offering them awide range of innovative life insurance products, to make them financially independent.Jeene Ki Azaadi...Kotak Mahindra life insurance company belongs to the Kotak Mahindra group which isone of the largest financial institutions in India, It gives Kotak Mahindra insurancecompany an advantage to enjoy the already existing goodwill of Kotak Mahindra group. 8
  9. 9. Kotak Mahindra Insurance company has been rewarded with FAAA rating by CRISILand TAAA rating by FITCH , this depicts the actual performance of the organization interms of its efficiency. The company spends less on marketing so it actually has morefinances available to sustain the growth of the company and provide better returns to thecustomers. Kotak Mahindra offers the most flexible and innovative unique products suchas Kemp etc , which surely gives it a competitive edge over the competitors.The distribution channel is amazing with a wide reach as the company has offices all overIndia in more than 60 cities.The company doesn’t spend much on marketing and it actually may be a reason for notbeing a market leader among the private players. The company has yet to make anysignificant presence in the rural sector as the brand name is yet not famous in the ruralIndia. The world trends in distribution channel for selling insurance are changing, thesedays 55% insurance in Europe is sold through banks. Kotak has its own Kotak bankspread all over the nation, this can be used to make cross selling possible.Since then its been a steady and confident journey to growth and success. YEAR MILESTONE ACHIVED1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market1990 The Auto Finance division is started1991 The Investment Banking Division is started. Takes over FICOM, one of India’s largest financial retail marketing networks Enters the Funds Syndication sector1992 9
  10. 10. 1995 Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company1996 The Auto Finance Business is hived off into a separate company - 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. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business2000 Kotak Securities launches - its on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.2001 Matrix sold to Friday Corporation Launches Insurance Services2003 Kotak Mahindra Finance Ltd. converts to bank COMPANY MANAGEMENT 1. Mr. Gaurang Shah (Managing Director) 2. Mr. G Murlidhar (Chief Financial Officer) 10
  11. 11. 3. Mr. Nihar Rao (Chief Technology Officer)4. Mr. Nandip Vaidya (Vice President - Tied Agency Sales)5. Mr. Arun Patil (Vice President - Sales Development)6. Mr. Jim Thompson (Appointed Actuary)7. Mr. Eksteen de Waal (Head Sales Training) OTHER GROUP OF COMPANIES• KOTAK MAHINDRA BANK LTD• KOTAK MAHINDRA CAPITAL COMPANY LTD• KOTAK MAHINDRA INTERNATIONAL LTD• KOTAK MAHINDRA VENTURE CAPITAL FUND• KOTAK MAHINDRA PRIMUS LTD• KOTAK SECURITIES LTD 11
  13. 13. Customer satisfaction research is not an end into itself. The purpose, of course, inmeasuring customer satisfaction is to see where a company stands in this regard in theeyes of its customers, thereby enabling service and product improvements which willlead to higher satisfaction levels. The research is just one component in the quest toimprove customer satisfaction. There are many others, including: • Top management commitment, • Linking of Customer Satisfaction scores with employee and management monetary incentives, • Recognition of employees who contribute to customers satisfaction, • Identification, measurement, and tracking of operational variables which drive satisfaction scores, • Customer-based improvement goals, • Plans for improving operational variables, • Incorporation of customer satisfaction skills into employee training programs, • Measurement of and plans for improvement of employee satisfaction, • Changes in corporate hiring practices.Top Management Commitment 13
  14. 14. Top management, through its actions, must show that customer satisfaction is importantto it. This can be done in several ways. • Acknowledging areas where the company needs to improve, • Allocating appropriate resources to the improvement of customer satisfaction, • Involvement of management and employees in the development of plans for customer satisfaction improvement, • Linking management bonuses to satisfaction scores, • Clear and frequent communication of what is being done to improve customer satisfaction.How profitability can be increased by satisfying customers.One of the reasons for the difficulty in making the connection is the intangibility ofcustomer churn. That is to say, how dissatisfied does a customer have to be before theyleave and sign with the competition? What might be an intolerable experience for onecustomer may well exceed all expectations of another. Then there’s competition. What ifthere isn’t any? Before deregulation how concerned were the large utility companies withcustomer satisfaction or British Telecom come to that. Interesting therefore that thetelecoms sector is where war is being waged on customer satisfaction. Could it be thathigh customer satisfaction attracts new customers and helps retain existing ones? Soundslike that could be worth something. 14
  15. 15. There is no question that customer satisfaction is difficult to measure, but why ismeasurement so essential?Employee Satisfaction:In today’s scenario one of the most important tool for any organization is to satisfy theiremployees. There are some patterns which an organization has to follow for thesatisfaction of their employees. • believe that the organization will be satisfying in the long run • care about the quality of their work • are more committed to the organization • have higher retention rates, and • are more productiveThere are six factors which influences job satisfaction: 15
  16. 16. Opportunity:Employees are more satisfied when they have challenging opportunities at work. Thisincludes chances to participate in interesting projects, jobs with a satisfying degree ofchallenge and opportunities for increased responsibility. Important: this is not simply"promotional opportunity." As organizations have become flatter, promotions can be rare.People have found challenge through projects, team leadership, special assignments-aswell as promotions. • Promote from within when possible. • Reward promising employees with roles on interesting projects. • Divide jobs into levels of increasing leadership and responsibility.It may be possible to create job titles that demonstrate increasing levels of expertisewhich are not limited by availability of positions. They simply demonstrate achievement.Stress:When negative stress is continuously high, job satisfaction is low. Jobs are more stressfulif they interfere with employees personal lives or are a continuing source of worry orconcern. • Promote a balance of work and personal lives. Make sure that senior managers model this behavior. 16
  17. 17. • Distribute work evenly (fairly) within work teams. • Review work procedures to remove unnecessary "red tape" or bureaucracy. • Manage the number of interruptions employees have to endure while trying to do their jobs. • Some organizations utilize exercise or "fun" breaks at work.Leadership:Employees are more satisfied when their managers are good leaders. This includesmotivating employees to do a good job, striving for excellence or just taking action. • Make sure your managers are well trained. Leadership combines attitudes and behavior. It can be learned. • People respond to managers that they can trust and who inspire them to achieve meaningful goals. 17
  18. 18. Work Standards:Employees are more satisfied when their entire workgroup takes pride in the quality of itswork. • Encourage communication between employees and customers. Quality gains importance when employees see its impact on customers. • Develop meaningful measures of quality. Celebrate achievements in quality. Be cautious of slick, "packaged" campaigns that are perceived as superficial and patronizing.Fair Rewards:Employees are more satisfied when they feel they are rewarded fairly for the work theydo. Consider employee responsibilities, the effort they have put forth, the work they havedone well and the demands of their jobs. • Make sure rewards are for genuine contributions to the organization. • Be consistent in your reward policies. • If your wages are competitive, make sure employees know this. • Rewards can include a variety of benefits and perks other than money.As an added benefit, employees who are rewarded fairly, experience less stress. 18
  19. 19. Adequate Authority:Employees are more satisfied when they have adequate freedom and authority to do theirjobs. : • Let employees make decisions. • Allow employees to have input on decisions that will affect them. • Establish work goals but let employees determine how they will achieve those goals. Later reviews may identify innovative "best practices." • Ask, "If there were just one or two decisions that you could make, which ones would make the biggest difference in your job?" 19
  21. 21. MAJOR COMPETITORS OF KOTAK MAHINDRA BANK are as follows:- Public Sector Banks Bank of Baroda State Bank of India Allahabad Bank Canara Bank Punjab National Bank Private Sector Banks HDFC Bank UTI Bank ICICI Bank Kotak Mahindra Bank Centurion Bank of Punjab Foreign Sector Banks Citibank Standard Chartered Bank HSBC Bank ABN AMRO Bank American Express 21
  23. 23. KOTAK MAHINDRA BANK PERFORMANCE (all products & services) • Consolidated financial revenues • Profits • Consolidated financial assets • Consolidated financial liabilities • Consolidated financial analytical ratios • Company wise profit after tax • Kotak Mahindra bank-standalone • Segmental profit before tax • Kotak Mahindra bank-standalone assets • Liabilities • Bank performance highlights • Key subsidiaries-highlights • Kotak securities-stock broking • Kotak Mahindra primus-car finance • Kotak Mahindra asset management company-asset management • Kotak Mahindra old mutual life insurance-life insuranceEarnings Update – Q1 FY06 Unaudited Results July 26, 2005The Board of Directors of Kotak Mahindra Bank Limited at their meeting held ,took onrecord the unaudited financial results 23
  24. 24. Performance Highlight (Figure in millions)• Consolidated total income up 62% to Rs 4,555.1 mn in Q1FY06 from Rs 2,809.7 mn inQ1FY05.• Consolidated fee income (including insurance) up 101% to Rs 1,966.8 mn in Q1FY06from Rs 979.0 mn in Q1FY05.• Consolidated advances up 61% YoY to Rs 77.2 bn as on June 30, 2005, with retailloans comprising 88% of the portfolio.• The group employee strength was over 4,800 as on June 30, 2005 (around 3,400employees as on June 30, 2004).• Net Interest Income (NII) of the Bank standalone for Q1FY06 up 51% to Rs 693.0 mn.• Deposits of the Bank grew by 71% from Rs 28.5 bn as on June 30, 2004 to Rs 48.8 bnas on June 30, 2005. Total number of deposit accounts was around 86,300 as on June 30,2005 (28,000 as on June 30, 2004).• Kotak Investment Banking was awarded the ‘Best Equity House’ in India by Euromoney for 2005.• Kotak Securities was awarded the ‘Best Broker’ in India by Finance Asia for 2005.• Kotak Securities clocked average daily volumes of around Rs 14.6 bn during Q1FY06(around Rs 7.6 bn in Q1FY05).• Kotak Life Insurance recorded 109% growth in premium income from Rs 282.7 mn inQ1FY05 to Rs 592.0 mn in Q1FY06.• Equity assets managed by the group in mutual fund, portfolio management and offshorefunds was over Rs 43 bn as on June 30, 2005 (around Rs 21 bn as on June 30, 2004). 24
  25. 25. • In July 2005, the new fund offer from Kotak Mahindra Mutual Fund for Kotak Contrascheme garnered Rs 6.4 bn from about 74,000 investors from 103 locations.Consolidated Financials RevenuesQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Financing activities 1,892.7 1,301.2 45.5% 1,786.4 6,164.4Fee income 1,397.2 715.7 95.2% 1,514.6 3,997.8Insurance Premium 569.6 264.0 115.8% 3,192.3 4,608.9Treasury / Investments 535.6 426.7 25.5% 484.9 1,891.3Others 160.0 102.1 56.7% 177.0 449.2Total Revenues 4,555.1 2,809.7 62.1% 7,155.2 17,111.5ProfitsQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Total operating profits before retail liabilities and life insurance losses 1,151.5 823.839.8% 1,303.6 4,018.0Loss on Retail liabilities and branch banking (136.2) (119.2) -(84.1) (464.3)Loss on Life Insurance (149.0) (147.5) - (56.2) (458.0)Profit before Tax 866.4 557.1 55.5% 1,163.3 3,095.6PAT (before minority interest/ associates/ adjustments) 532.4 333.8 59.5% 769.2 1,938.9PAT (after minority interest/ associates / adjustments) 464.7 307.0 51.4% 642.8 1,709.1EPS (diluted) (Rs) (non annualized) 3.7 2.6 43.8% 5.3 14.2 25
  26. 26. Consolidated Financial AssetsAs on June 30, 2005As on June 30, 2004 Growth (%) YOYAs on March 31, 2005 Advances• Commercial Vehicles 17,521 13,450 30.3% 17,175• Car Loans 27,178 23,384 16.2% 25,975• Personal Loans 6,396 374 89.6% 5,421• Home Loans 5,219 1,445 261.1% 4,006• Corporate + SME 9,510 3,117 205.1% 9,004• Others 11,382 3,150 261.4% 9,866Total Advances 77,207 47,920 61.1% 71,447Investments / Treasury Assets 30,378 18,150 67.4% 27,057Total Advances and Investments 107,585 66,071 62.8% 98,504 26
  27. 27. Consolidated Financials LiabilitiesAs on June 30, 2005As on June 30, 2004 Growth (%) YOYAs on March 31, 2005Deposits 43,390 25,685 68.9% 38,326Borrowings 40,014 25,632 56.1% 38,073Consolidated Financials Analytical RatiosAs on June 30, 2005As on June 30, 2004As on March 31, 2005Net-worth after minority interest (Rs mn) 15,138 12,666 14,668Book value per share (Rs) 123 106 119Gross NPAs (Rs mn) 492 347 372Net NPAs (Rs mn) 255 104 202Net NPAs (%) 0.3% 0.2% 0.3%Annualized Return on average Net-worth (%) 12.5% 9.8% 12.6%Annualized Pre-Tax Return on average Net-worth (%) (before loss on retail liabilities andbranch banking and life insurance businesses) 31.1% 26.4% 29.7% 27
  28. 28. Company-wise Profit After TaxQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Kotak Mahindra Bank (Standalone) 196.8 220.6 -10.8% 230.8 848.9Kotak Mahindra Capital Company 34.4 19.3 78.7% 62.3 158.2Kotak Securities 340.0 193.9 75.4% 433.7 1,055.9Kotak Mahindra Primus 13.3 23.7 -43.7% 13.3 92.3Kotak Mahindra AMC & Trustee Co 19.3 15.5 24.6% 7.7 45.1Kotak Mahindra Old Mutual Life Insurance (150.5) (147.5) -(56.2) (458.0)Kotak Mahindra Investments 48.1 23.0 109.1% 72.5 205.2International subsidiaries * 0.7 36.4 -98.0% 98.5 125.4Others 34.0 (2.0) -22.1 37.8Total consolidated profit after tax 536.2 382.8 40.1% 884.6 2,110.7Less: Minority interest & other adjustments (72.7) (82.3) -(252.2) (434.9)Add: Equity affiliates 1.2 6.5 -81.0% 10.4 33.3PAT (after minority interest / adjustments) 464.7 307.0 51.4% 642.8 1,709.1For FY05, the financials for international subsidiaries are for 15 month period fromJanuary 2004 to March 2005. Q4 FY05 financials are for a six month period for thesesubsidiaries and Q1 FY05 financials are for a 3 month period ending March 2004. 28
  29. 29. Kotak Mahindra Bank – StandaloneSegmental Revenues Q1 FY06 Q1 FY05 Growth (%) YOY Q4 FY05 FY 05 (3 months)(3 months) (3 months) (12 months)Retail Lending 1,006.9 582.8 72.8% 951.0 2,935.6Corporate Banking 315.1 208.4 51.3% 259.1 1,060.3Retail Liabilities and Branch Banking 206.2 48.6 324.7% 260.6 503.5Treasury 480.1 308.2 55.8% 372.0 1,339.8Corporate Centre 159.3 231.7 -31.2% 217.7 836.7Inter-segment revenue (400.3) (235.4) - (344.9) (1,155.4)Un-allocable revenue (net) --(0.8) 3.3Total Revenue 1,767.3 1,144.3 54.4% 1,714.7 5,523.8Operating profit before losses on retail liabilities & branch banking 443.5 424.8 4.4%403.9 1,648.2Retail Liabilities and Branch Banking loss (136.2) (119.2) - (84.1) (464.3)Profit before tax 307.3 305.6 0.6%319.8 1,183.9Provision for tax 110.5 85.0 30.0% 89.0 335.0Profit after tax 196.8 220.6 -10.8% 230.8 848.9 29
  30. 30. Segmental Profit before taxQ1 FY06Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Retail Lending 277.3 168.9 64.2% 274.0 815.8Corporate Banking 60.2 65.2 -7.7% 9.6 251.9Retail Liabilities and Branch Banking (136.2) (119.2) - (84.1) (464.3)Treasury (16.3) (16.5) -(60.8) (148.4)Corporate Centre 122.3 207.2 -40.4% 181.8 725.6Un allocable Expenditure -(0.8) 3.3Total PBT 307.3 305.6 0.6% 319.8 1,183.9 30
  31. 31. Kotak Mahindra Bank – Standalone AssetsAs on June 30, 2005As on June 30, 2004 Growth (%) YOYAs on March 31, 2005Advances• Commercial Vehicles 17,521 13,450 30.3% 17,175• Personal Loans 6,396 3,374 89.6% 5,421• Home Loans 5,219 1,445 261.1% 4,006• Corporate + SME 9,510 3,162 200.8% 9,021• Others 4,916 1,583 210.4% 4,548Total Advances 43,562 23,014 89.3% 40,171Treasury Assets 20,862 13,930 49.8% 18,270Total Advances and Investments 64,425 36,944 74.4% 58,441LiabilitiesAs on June 30, 2005As on June 30, 2004 Growth (%) YOYAs on March 31, 2005Deposits 48,819 28,499 71.3% 42,995Borrowings 9,467 4,304 120.0% 9,855 31
  32. 32. Bank Performance Highlights• As on June 30, 2005, the Bank had 42 full-fledged bank branches (38 branches as onMarch 31, 2005 and 20 branches as on June 30, 2004) across 25 cities in India. The Bankproposes to have a total of around 65 - 70 full-fledged branches by March 2006 and 90-100 full-fledged branches by March 2007 across 45 to 50 towns and cities.• Fees from third party distributed products at Rs 91.6 mn for Q1FY06 grew around 5times as compared to Q1FY05. The mutual fund assets under management distributed bythe Bank were around Rs 27 bn as on June 30, 2005 (Rs 19 bn as on June 30, 2004).• NII of the Bank for Q1FY06 was Rs 693.0 mn up by 51% (Rs 459.4 mn in Q1FY05).• Advances up 89% YoY to Rs 43.6 bn.• Commercial vehicle advances up 30% YoY to Rs 17.5 bn. Personal loans up 90% to Rs6.4 bn.• Deposits of the Bank grew by 71% from Rs 28.5 bn as on June 30, 2004 to Rs 48.8 bnas on June 30, 2005. Total number of deposit accounts was around 86,300 as on June 30,2005 (28,000 as on June 30, 2004).• PBT of the retail lending segment was up 64% from Rs 277.3 mn in Q1FY05 to Rs168.9 mn in Q1FY06.• Capital adequacy ratio as on June 30, 2005 was 12.52% (14.69% as on June 30, 2004).• During the quarter the Bank issued Rs 663.0 mn of Bonds eligible to be classified asTier II Capital. As on June 30, 2005, the Bank has issued Rs 1,500 mn of such Bonds. 32
  33. 33. Key Subsidiaries – HighlightsKotak Mahindra Capital Company – Investment banking and primary dealerQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Total income 188.9 115.8 63.2% 224.5 629.6Profit before tax 42.2 21.5 96.5% 64.3 191.3Profit after tax 34.4 19.3 79.2% 62.3 158.2• Kotak Investment Banking was awarded the ‘Best Equity House’ in India by Euromoney for 2005.• During the quarter, successfully completed equity offerings of All sec Technologies,Oriental Bank of Commerce, Allahabad Bank and Shopper’s Stop, all of which receivedenthusiastic response from investors.• Kotak Investment Banking continued to build its equity issuance business by preparingto launch a number of offerings like IPO of IL&FS Invest smart, IDFC and HT Mediaand rights issues of Nicholas Piramal and Ramco Systems.• Successfully concluded Standard & Poors transaction relating to the acquisition of acontrolling stake in CRISIL Ltd through a voluntary conditional tender offer structure.• Exclusive financial advisors to Raymond Ltd in their proposed acquisition of Ring PlusAqua Ltd assisting Raymond Ltd in increasing its presence in the engineering sector.• In July 2005, Kotak Investment Banking through its International subsidiaries acted asJoint Lead Manager and Joint Book runner to the successful GDR issuance by ApolloHospitals Enterprise Limited. 33
  34. 34. • Segmental loss for Trading and Principal Investments stood at Rs 53.4 mn for Q1FY06as compared to profit before tax of Rs 7.84 mn for Q1FY05.Kotak Securities – stock brokingQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Total income 1,033.3 638.5 61.8% 1,289.0 3,296.5Profit before tax 493.5 296.9 66.2% 678.4 1,641.1Profit after tax 340.0 193.9 75.3% 433.7 1,055.9• Kotak Securities was awarded the ‘Best Broker’ in India by Finance Asia for the year2005.• Kotak Securities (retail, online and institutional segments) clocked average dailyvolumes of over Rs 14.6 bn during Q1FY06 as compared to around Rs 7.6 bn duringQ1FY05.• Average daily volumes on (online) during Q1FY06 increased toRs 1,380 mn from Rs 530 mn during Q1FY05.• AUM in Portfolio Management Services (PMS) was Rs 20.8 bn as on June 30, 2005 (Rs11.6 bn as on June 30, 2004).• Kotak Institutional Equities continued to gain market share with revenues rising morethan 40% YoY in Q1FY06. This has been achieved through continuous investments inour research products, increased emphasis on marketing and client relationships, both interms of depth and width.• Kotak Securities has a network of over 515 offices (own & franchisees) across 181cities and towns and over 155,000 secondary market clients. 34
  35. 35. Kotak Mahindra Primus – car financeQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Total income 670.9 622.2 7.8% 647.2 2,595.8Profit before royalty & taxes 135.9 155.2 -12.4% 125.2 593.9Profit after royalty before taxes 20.2 36.5 -44.7% 9.6 135.8Profit after tax 13.3 23.7 -43.9% 13.3 92.3• Advances at Rs 27.2 bn as on June 30, 2005, up 16% YoY.• In June 2005, Kotak Group and Ford Credit International (FCI) announced therealignment of their joint ventures. Kotak Group will acquire the 40% stake in KotakMahindra Primus held by FCI, and FCI will acquire the stake in Ford Credit KotaMahindra held by Kotak Group. The transactions are subject to regulatory approvals. 35
  36. 36. Kotak Mahindra Asset Management Company – asset managementQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Total income (AMC) 79.8 73.1 9.2% 48.5 233.6Profit before tax (AMC) 21.8 16.1 35.4% 2.6 31.3Profit after tax (AMC) 14.2 11.8 20.3% 2.6 28.9Profit before tax (Trustee Company) 7.5 5.8 29.3% 8.0 25.2Profit after tax (Trustee Company) 5.1 3.7 37.8% 5.1 16.1• Total AUM as on June 30, 2005 was Rs 65.0 bn (Rs 56.5 bn as on June 30, 2004).Equity AUM as on June 30, 2005 was Rs 10.6 bn (Rs 6.1 bn as on June 30, 2004).• In July 2005, the new fund offer for Kotak Contra garnered Rs 6.4 bn from about74,000 investors from 103 locations.• Presence in 69 cities through 34 branches and franchisees 36
  37. 37. Kotak Mahindra Old Mutual Life Insurance - life insuranceQ1 FY06 Q1 FY05 Growth (%) YOYQ4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)Gross premium income 592.0 282.7 109.4% 3,206.8 4,661.6Loss (150.5) (147.5) -(56.2) (458.0)• Kotak Life Insurance (KLI) recorded 109% growth in premium income from Rs 282.7mn in Q1FY05 to Rs 592 mn in Q1FY06.• KLI has a network of 44 branches in 30 cities.• As on June 30, 2005, KLI had around 126,000 individual policies on books representinga basic sum assured of Rs 57.8 bn (excluding riders). Additionally, the company had 87group policies covering around 97,000 lives with an aggregate sum assured of Rs 20.5bn. 37
  38. 38. SWOT analysis of Kotak Mahindra bank COMPETITIVE ADVANTAGESWOT ANALYSIS Environmental Scan Internal Analysis External Analysis Strength Weaknesses Opportunities Threats SWOT Matrix 38
  39. 39. STRENGTHS 1. The Kotak Mahindra group which is one of the largest financial institutions in India, ever since its inception in 1986 the Kotak Mahindra group has created numerous success stories in whatever business they landed. It gives Kotak Mahindra insurance company an advantage to enjoy the already existing goodwill of Kotak Mahindra group. 2. The Kotak Mahindra insurance company is a joint venture of old mutual and Kotak Mahindra. Old Mutual was established more than 150 years ago and the company is listed on the London Stock Exchange with a market capitalization of approximately $6 billion and is a member of the elite FTSE 100 index. In the 2003 rankings of the Worlds 500 largest corporations by Fortune magazine, Old Mutual climbed 87 places to position number 366 and was also listed as the 14th largest insurance company in the world. The joint venture enjoys the blend of one of the most experienced and trusted companies internationally as well as nationally. 3. Kotak Mahindra Company has one of the lowest Non Performing Assets (NPA’s) in the industry which is .16%. It provides the company a strong financial stability as well as depicts who cohesively the company manages itself. 39
  40. 40. 4. Kotak Mahindra Company has been rewarded with FAAA rating by CRISIL and AAA rating by FITCH, this depicts the actual performance of the organization in terms of its efficiency.5. The company spends less on marketing so it actually has more finances available to sustain the growth of the company and provide better returns to the customers.6. Kotak Mahindra offers the most flexible and innovative unique products such as Kemp etc , which surely gives it a competitive edge over the competitors.7. The distribution channel is amazing with a wide reach as the company has offices all over India in more than 60 cities. 40
  41. 41. WEAKNESS 1. The company doesn’t spend much on marketing and it actually may be a reason for not being a market leader among the private players. 2. The company has yet to make any significant presence in the rural sector as the brand name is yet not famous in the rural India. 3. The company has a conservative approach and they believe in steady and very safe progress , which actually results them to be in a position where they are behind some of the more aggressive market players like ICICI 4. In India the rural market and middle class society still don’t have faith in private insurers and their genuinity. OPPORTUNITIES 1. The whole rural market is a kind of niche segment for opening of accounts, deposits, borrowings, and insurance business. The only company which has some presence in rural market is LIC. So, Kotak is at par with all other private companies and the its an equal competition for all, there is an opportunity to make a mark and be the first among the private insurers and capture the rural market. 41
  42. 42. 2. The Kotak being such a big name has an opportunity to grow its insurance business as well increase its distribution channel whole over the world by using the goodwill of the group companies and they can even target the customers of each company of their group to get insurance through them by offering special incentives or schemes, such as providing medical insurances along with saving accounts in their banks etc. 3. The good showing at the stock markets and growing Indian economy enables the Kotak company to give better returns to customers, specially in unit link schemes. 4. The world trends in distribution channel for selling products are changing, these days 55% insurance in Europe is sold through banks. Kotak has its own Kotak bank spread all over the nation, this can be used to make cross selling possible.THREATS 1. The rural India and middle class India still don’t have faith in private players. 2. The Kotak Mahindra company is competing with private companies which are spending huge amounts on marketing, so to maintain a competitive edge with these companies in terms of acquiring market shares would be a tough task. 42
  44. 44. MARKETING STRATEGIES KOTAK BANK carried out various marketing initiatives to enhance its reach. They included segregating and targeting existing high value customers, cross sales of other products, setting up call centers and outbound sales force to secure new customers. Plans were also made to utilize database marketing to pursue large and medium sized corporate, government and trade finance customers. Database marketing was expected to draw increased revenue from cross selling, lower costs and increased customer loyalty. KOTAK also introduced various other ways of reaching out to customers like extension of hours of work and aggressive marketing through print and television media. It increased daily working hours by two hours and Sunday banking was introduced.CHANNEL MANAGEMNENTFor better channel management there are so many tools like proper communicationamong the channel, the selection of right financial advisor they should understand theOpportunity and should be self motivated, the important part of the growth of thefinancial companies is that they should properly manage there channel. 44
  45. 45. MARKET SCENARIO:There are two basic models upon which the distribution of products and services. One isthe traditional model and other comprises of some modifications over and above the basicmodel.Traditional ModelThe traditional model comprises of distribution of life insurance through individual lifeadvisors. It has been the basic model used before the opening up of the insurance sectorand when LIC was the only player in this sector. This has also proven to be the mostsuccessful of the distribution channels used until now. It had the advantage of directselling wherein the life advisors used to interact directly with the customers. But themajor problem with this entire structure was that in a long period of time it resulted out intoo many a life advisor in numbers. And keeping a check on the functioning of this manynumber of life advisors became more and more tedious. This resulted in trying out ofother channels of distribution, which would result in the entire structure getting shrunk interms of the direct follow-ups of the life advisors yet giving a deeper coverage andpenetration in the market. And this was possible only through some basic modificationsbeing made in the traditional model. 45
  46. 46. Alternate ModelIn the alternate model what was done was either the span of control for the SalesManagers was decreased or the penetration in terms of the reach to the people wasincreased. So, where the SM earlier managed a field force of 15-20 Life Advisors, hemay now handle just 4-5 Corporate Agents, who in turn end up with 15-20 FieldExecutives each. The following are the basic type of the structure that has beenintroduced so far.THE INTERMEDIARIESIn majority of cases, the prices of the produce or goods manufactured or the servicesrendered is not dependent on the customer but on the perceived value of the offer. In suchcases the role of the intermediary stops with bringing the sellers & the buyers together &influencing the buyer to buy the product on offer.In case of insurance, the prices also depend on details furnished by the buyer, forexample, under life & health policies, the persons age, present state of health,occupation, determine the nature & price of the product. The insurance instrument isunique in another aspect as well. Insurance transactions are becoming more & morecomplex & in spite of the details being furnished by the insurer in the policy document,many insured claim that they do not understand the provisions of the contract in the viewof their technical nature. 46
  47. 47. In the view of the above, the role of the intermediary gains much importance. Theintermediary has obligation towards the insured as well as the insurer. • For the insured, he has to explain the provisions of the contract. He has to guide the client keeping in view his insurance needs. • For the insurer, he has to facilitate getting information about the insured.Due to above reasons, despite of rapid technological advances the human face ofintermediary continues to hold sway in the insurance industry.AgentsAgents perform the task of retailers; giving customers information about the availablechoices& helping them make purchase decisions. Agents may be appointed in any placefor the purpose of soliciting or procuring insurance business for the company.The main function, the agent should be expected to perform would include - clientidentification , marketing, investors education & counseling, marketing expansion &quality control of front line agents, collection of premium.BrokersInsurance brokers are organizations who assess the complete insurance heeds of theclients and then work out back-to-back policies with insurers to give a complete solutionto the client. The distribution strategy here is quite different since the brokers will haveto access to multiple insurers. Ultimately, the variety of policies and options and the levelof service given by different insurers will have to direct impact on the market share andmind share of the insurer with the broker. In the present day economic environment many 47
  48. 48. companies and institutions find themselves unable to optimise insurance related matterswith the sole use of their personnel. This happens because of : • The specific nature of insurance terminology and procedure. • Frequent changes affecting the position of insurers. • The complex character of an insurance contract. • The supply of increasingly complicated insurance products. • Insufficient knowledge of the insurance market.As a result, modern insurance markets have developed the institution of independentinsurance brokers, i.e. highly specialized experts, dedicated to support the clients andtheir interests before the insurer.There are three types: - • Direct Broker- Licensed to carry on both life as well as general insurance broking direct basis only. • Re-insurance broker- licensed to carry on re-insurance broking only. • Composite Brokers-Licensed to carry on both direct as well as re- insurance broking. 48
  49. 49. CORPORATE AGENTS & DIRECT SALES AGENT (DSA)DSAs provide a very wide reach in India. Some DSAs already distribute financialproducts such as credit cards, loans & even non-life insurance products. This is a muchdiversified channel. Each DSA must be evaluated based on its own characteristics. Someare small & target very knowledgeable clients. These are best served through thefinancial planning techniques. Some are large & use a mass-market approach in theirexisting business. These are best served using direct mail or tele-marketing approach.There are some that are hybrid with a small wealthy clientele along with a mass market.It is best for the insurer to segment these markets using appropriate distributiontechniques.The products for this channel must again match the distribution technique. If the DSA hasa simple clientele, simple straightforward products (return of premium term, singlepremium term & non- participating endowment with all the simplified Underwriting) aresufficient. However, more sophisticated-client require the-product range to be wide tomatch the needs identified during the sales process.The DSAs & the Insurers must view each other with great clarity. Not all DSAs want toor are suitable to distribute Insurance. The payback can be even longer than bankassurance. Therefore the need for commitment & management is greater than in case ofbank assurance. This has proven to be a very successful channel for other products butyet to be proven for insurance. This is a very promising channel but will require muchtime & effort. 49
  50. 50. NON GOVERNMENT ORGANISATION (NGO)NGOs are non - profit organizations working towards the social goal. Most often this isrealized through foreign funding, though domestic funding is also available. The ethos ofthese organizations is to spread social & financial benefits in areas & groups ofpopulation, who do not have access to these benefits. Normally a large NGO will workthrough several small NGOs & Self Help Groups (SHG) & deliver their service down tothe grass root level of the rural society.To distribute insurance products through these channels, a thorough understanding of theethos of these organizations and their methods of operation is crucial. The distributionhas to happen at the grassroots level of comfort and security in dealing in groups. Therewill be opinion leaders among these groups who will be the main proponents - followedby the rest of their respective groups. The training and product distribution will have toflow from the NGO to this level and has to be delivered in a customized manner typicalof the rural market place. There is also a need of robust mechanism of premiumcollections year on year. The rural population normally prefers monthly premium in linewith the micro finance repayments. 50
  51. 51. BANK ASSURANCEWith changes in the agency regulations in insurance / banking regulations & emerging ofthe brokerage models, Banks would now be able to play more proactive role as adistributor of Insurance products.Bank assurance should be one of the priority tie-up areas as a distributing channel forpersonal lines products. International experience has been that: • It is very easy to synchronize the banking & insurance products. • It is a cost effective way to achieve volumes. • It is simple to operate. • Have a large customer base. • Branch name recognition.MLM (Multi Level Marketing)Multi-level marketing is system of marketing which puts more emphases upon therecruiting of distributors than on the selling of products. MLM is very attractive,however, because it sells hope and appears to be outside the mainstream of business asusual. It promises wealth and independence to all.In the insurance sector different MLMs try to tap up as the corporate agents. But therefunctioning can be either straight way just in case of a corporate agent or as a MLMwherein the entire chain is used up and the commissions are penetrated and passed on 51
  52. 52. deep within the chain. The structure of the working of the MLMs can be made accordingto the specific needs and demand the company to be tied up with.Unfortunately, no matter what the product, MLM is doomed to produce more failuresthan successes, For every MLM distributor who makes a decent living or even a decentsupplemental income, there are at least ten who do little more than buy products andpromotional materials, costing them much more than they will ever earn as an MLMagent. The most successful MLM scheme is Amway.The reason MLM schemes cannot succeed is because MLM marketing is, in essence, alegal <pyramid.html> scheme. The basic idea is for a sales person to recruit more salespersons. This is very advantageous to those who own the company and supply theproducts, especially since the sales persons in MLMs are also customers. But it ispuzzling why a sales person would think it is to his or her advantage to increase thenumber of competing sales persons.HNI (High Net worth Individuals)It basically works on the elite selling model. In the HNI model the insurance companiestry to tap the customer segment in the higher echelons of the society so that it can cater toa high average policy size. 52
  53. 53. BARRIERS:Of late every other company in the insurance business has been trying to use thesealternative distribution channels to make a mark in the market. There has been a surveyconducted by the OM KOTAK MAHINDRA company to test the feasibility of suchalternative distribution channels and know the problems that can be faced for developingthese alternative distribution channels in the year 2004 .The results are as under. • With this segment being an obvious choice it was probably explored and explored again by most of the players in Life Insurance. Thus a large section of the companies that were contacted were already attached to some insurance company. • Another aspect raised a number of times in our communication with such companies was the overwhelming presence of LIC, wherein it became difficult to sell the concept of efficiency and return by a private player in comparison to the security offered by LIC with an implicit sovereign backing. • A large number of such companies which had already tried in related areas of push sales as credit cards, loans etc were convinced that it was very difficult to sell insurance and with the people not showing much faith in the private players it became even tougher. • Another issue raised by a few as a passing remark was the high turnover of salesmen in such a business, and that the salesmen did not have much incentive to stay with the corporate agent as against working on his own as an insurance agent. 53
  54. 54. INTERMEDIARIES:1. AGENTS POSITIVE ASPECTS The main function, the agent should be expected to perform would include- • Client identification, • Marketing, • Investors education & Counseling, • Marketing expansion, • Quality control of front line agents, • Collection of premium, NEGATIVE ASPECTS • The agent, in general, needs to be more knowledgeable & professional as the people have limited knowledge about insurance & hence his advice & opinion is valued, But it has been noticed that there is lack of an adequately trained agency force often implying lack of professionalism, resulting in clients being sold the product that carry -the highest commission. • Moreover, the company has little control over agent activity & can’t influence sound/ethical work practices, Production levels are extremely low, Persistency is poor & adversely impacts companys profitability. 54
  55. 55. 2. BROKERS POSITIVE ASPECTS: • They take instructions from their clients. • Execute them in an efficient manner. . Assist in the negotiations of claims. • They help in current monitoring of the insurance market, especially the credibility of insurers and the quality of services they render to the clients. • They analyze available insurance products. • Brokers provide assistance to the clients regarding the choice between the securities offered by insurance. • They have commitment on the side of the client in the process of arrangement and conclusion of insurance contracts, especially concerning negotiations or the terms and conditions of the insurance. NEGATIVE ASPECTS: • Since the brokers deal in more than one product, in one or the other way company loses profitability if its product doesnt find favor with the broker. • There are minimum capital requirements. • The norms stated by the IRDA are stringent. Thus, fewer brokers are there. 55
  56. 56. 3. CORPORATE AND DIRECT SALES AGENT POSITIVE ASPECTS • They help in segmentation of the market. Some DSA caterer to small knowledgeable clients and some to wealthy clients. • They provide a wide reach in India. • DSA is a much-diversified channel. NEGATIVE ASPECTS • Lack of control • The payback in case of DSA can be even longer than bank assurance. • There is lack of adequate commitment and management. • This channel requires a lot of time and effort. 4. NGO POSITIVE ASPECTS • They spread social & financial benefits in areas & groups of population, who do not have access to these benefits. • A NGO will distribute such benefits through other NGOs to reach the grass root level. Thus leading to formation of a chain of distribution. NEGATIVE ASPECTS 56
  57. 57. • Companies have to come up with new products keeping in mind the special needs of the rural people. This would require a lot of time, effort and capital. For e.g. people in rural areas prefer monthly mode of payment of premium. • The product needs to be distributed in a customized and typical rural manner. • A robust mechanism would be required for premium collections year after year. • Communicating the need of life insurance in the rural India. 5. BANK ASSURANCEPOSITIVE ASPECTS: • It is very easy to synchronize the banking & insurance products. • It is a cost effective way to achieve volumes. • It is simple to operate. • Have a large customer base. • Branch name recognition. • Credibility.NEGATIVE ASPECTS: • Customers do not see banks as a primary source of insurance. 57
  58. 58. • No confidence in the Banks financial expertise outside its usual activities. • There are well developed distribution channels for insurance that are effective. • Banks presume that they could get easy sales by cross selling insurance forgetting that they are not good cross sellers.Life insurance is different from fixed deposits, because the former has no liquidity for thefirst three years, followed by limited liquidity whereas the latter has total liquidity as wellas an assured interest rate. Besides, the yield on life insurance is in the form of bonus, isnot guaranteed. And it is much more difficult to sell life insurance products on the basisof its main benefits i.e. risk coverage. So the past experience of the bank employees maynot be relevant in selling insurance.People buy bank products, whereas, the insurance needs to be sold.Fewer opportunities are available to the bank employees to sell insurance as with theadvent of the ATM fever the visits of the customer to the banks have reducedconsiderably. 58
  59. 59. 1. MULTI LEVEL MARKETING (MLM)POSITIVE ASPECTS: • The structure of the working of the MLMs can be made according to the specific needs and demand of the company to be tied up with.NEGATIVE ASPECTS: • The costs involved in the MLM structure are very high. • The MLM marketing is the form of a pyramid. 59
  60. 60. 60
  62. 62. Benefits provided by Kotak Mahindra bank for customers are as follows :-For their consumers, Kotak Mahindra bank provide following benefits to itsconsumers 1. Free access at all Visa ATMs – Use your Kotak Mahindra Bank Global Debit Card to withdraw cash from any Visa ATM across India - free of cost! 2. Free Cash Delivery/Pick Up – Get Cash delivered, as low as Rs.5000/-, to your doorstep. Also, get Cash and/or Cheques picked up from your home/office. 3. Free Demand Drafts – Avail DDs, free of cost, payable at any location in India, up to a pre-specified limit. 4. Free At-par Cheques – 62
  63. 63. Get free At-par Cheques that are treated as ‘local clearing cheques across all our branch locations.5. Attractive Returns – Earn higher returns with our 2-way Sweep facility that automatically moves idle funds in your account into Term Deposits (TDs) or Liquid Mutual Funds(MFs). These TDs / MFs are broken/redeemed to bring back funds when required, thereby providing you maximum liquidity6. Electronic Fund Transfer – Transfer funds electronically to third party accounts in other banks across 15 cities. At- Home Services - Make Utility Bill payments like electricity, telephone and mobile phone.7. Family Savings Account- Extend the privileges of banking with Kotak to your family members! Open our feature rich Family Savings Account for your loved ones! 63
  64. 64. 8. Free Investment Account – Avail a ‘free’ Investment Account that provides you the unique opportunity to monitor and manage your investments in Mutual Funds. You can Purchase/Redeem MFs online through the Net Banking facility. Also get a consolidated view of all your MF investments, across schemes, with updated returns status, NAV information etc.9. Online trading in Shares – Trade online in the stock market through and take advantage of our De-mat Services to hold your securities with the Bank. What’s more, you can use our Payment Gateway facility to settle your dues directly from your bank account.10. Personal Investment Advisor – To identify and analyse your specific investment requirements we provide you a dedicated Personal Investment Advisor*. This person alerts you to investment opportunities, sends you regular updates and feedback on the performance of your 64
  65. 65. investments, helping you monitor, manage and grow your wealth in an ever fluidinvestment climate. 65
  67. 67. RESEARCH OBJECTIVECustomer Satisfaction Survey- To find out the customer feedback of Kotak Mahindrabank.♦ To find the awareness of products and services of bank among the customers.♦ To find customers satisfaction of the services offered by bank♦ To find satisfaction of the customers for new productsRESEARCH METHODOLOGYResearch typeInitially a exploratory research was undertaken to gain insights into the general nature ofthe research problems and objectives, the possible decisions, alternatives and the relevantvariables that need to be considered while designing the questionnaires.Along the lines of this exploratory research the questionnaire was designed. With the helpof the questionnaire the survey was conducted. 67
  68. 68. Data sources Primary Data: - Primary data was obtained through the questionnaire designed for the research. Secondary Data: - It is obtained from the following:I. Company website ( Research approach- Survey Method was used to collect primary data. The primary data from the samples under study were collected by using a questionnaire. Research instrument The main research instruments used for this study was- Personally Administered Questionnaire: The questionnaire was prepared with prior consultation of the academic as well as organizational guide. The questionnaire includes both closed ended and open ended questions. The questionnaire aimed at finding out the present business scenario of Banking sector and the problems related to the company. It also aimed at finding the preference of market. Semi-Structured Interview Of Clients: The interview was conducted over the telephone which aimed at knowing the customers choice of banking sevices for fulfilling their needs and finding out the reason for the same. 68
  69. 69. Method of collecting the data – Data was collected by personal interactions with thecorporate and clients.Data processing-Measurement unit- data will be analyzed on the basis of feedback from all the units in theuniverse. The collected data was depicted in the form of graphical charts in MS Excel.Inferences were drawn and the suggestions were given.The Survey Team:A survey team of two people was assembled under the guidance of marketing executivesin Kotak Mahindra bank. Once assembled, the team had to meet for discussing andclarifying survey procedures, especially the following:  Things that were to be covered in the survey according to the priorities of the company.  How the survey was to be done  Data collection and reporting procedures  Meetings at proper intervalsSelection of Sample For The Survey:The companies who are the direct customers of Kotak Mahindra bank limited wereselected randomly as the samples for the survey. The area covered during the survey wasPatna City. 69
  71. 71. DATA ANALYSIS AND INTERPRETATIONCustomers have account with Kotak Mahindra Bank, following result are as follows,68%have a/c with Kotak Mahindra bank and 32% don’t have a/c. YES 68% NO 32% 71
  72. 72. These three types of account consumers have, some have 32% saving a/c,28% havecurrent a/c, and 40% have fixed deposits. • Saving account • Current account • FDs SAVING ACCOUNT 32% CURRENT 28% ACCOUNT FIXED 40% DEPOSITS Type of account SAVING A/C CURRENT A/C FDs 72
  73. 73. Awareness about all the products and services offered by bank among customers are asfollows:- YES 56% NO 44% 73
  74. 74. Credit card used by customers of different banks is as follows:- • Kotak HDFC • ICICI SBI KOTAK 35% HDFC 25% 20% ICICI SBI 20% 74
  75. 75. Awareness about Kotak Mahindra Bank Credit Card among customers are given below,68% shows yes, 325 shows YES 68% NO 32% AWARENESS ABOUT KOTAK CREDIT CARDS YES NO 75
  76. 76. Kotak credit card used by consumers are as given below. Four types of credit cards usedwhich are as follows:- Fortune Gold Card 35% Trump Gold Card 25% League Platinum Card 15% Royals Signature Card 25% KOTAK CREDIT CARDS Fortune Gold Card Trump Gold Card League Platinum Card Royals Signature Card 76
  77. 77. Services avail by the customers, offered by Kotak Mahindra bank are as follows YES 67% NO 33% ALL SERVICES OF KOTAK BANK ,AVAIL BY CONSUMERS YES NO 77
  78. 78. From the following sources consumers aware or about the Kotak Mahindra bank:- 20% T.V 34% Newspapers Internet 26% Friends/colleagues 15% Magazines 15% 78
  79. 79. Overall experience of consumers regarding Kotak Mahindra bank are as follows Excellent 34% Very good 21% Fair 22% Poor 23% 79
  80. 80. Friend/relative deals with the Kotak Mahindra bank as follows:- YES 48% 52% NO 80
  81. 81. Rated by the customers about the performance of banks are as follows- Excellent Very Good Fair Poor 30% 35% 25% 15% 81
  82. 82. Investment in Kotak securities limited, by the customers are given below:- YES 62% NO 38% 82
  83. 83. Performances of E-banking are as follows:- Excellent Very Good Fair Poor 88% 12% - - 83
  84. 84. E-Banking facilities are new to bank and fulfill banking transactions as follows,customers says yes or no…61% and 39% respectively. YES 61% NO 39% 84
  85. 85. MAJOR PROBLEMS FACEDThere were many small big problems faced during the sales visits. 1. People are prejudiced about the myth that the private companies may run away at any time taking there money, so these people are reluctant to take services from private banks. 2. While collecting data for the need analyzer forms to evaluate a most appropriate product for a customer, even the interested customers tend to hide their actual information, such as annual income, loans, total assets, expected expenditures on marriage/education etc. 3. There was an unexpectedly strange problem, faced in specially the labor class and low middle class income group, these people are superstitious about the life insurance concept, they believe that they will die soon if they opt for insurance. 4. People who want borrowings from banks, then they will expect low rate of interest and high rate of interest on deposits, which is not allow by banks, it’s a great problem for banks. 5. Some people, even if they are not interested, they directly don’t say ‘NO’ rather they linger on and have a series of appointments till the time the seller loses enthusiasm and becomes sure that the client is not going to give a sale. 85
  86. 86. 6. Some of the prospects don’t even listen to anything and straight away say ‘NO’, they don’t even give u a chance to say what one wants to, most of these people were businessman who perhaps had less time to listen to sales pitch.7. Some people don’t even understand the concept of different types of products and services the worse is that they don’t even want to know about it.8. People generally want to buy services from their known people like friends, relatives etc. so even if they ask sales person, thousand questions about ifs and buts of the policy, they prefer buying it from a known person.9. The services like credit card facilities being an intangible service, it was really difficult to make the concept of credit services because they never understand yet in their lives.10. People who have already bought insurance products have little knowledge about their already purchased products.11. The sales pitch if delivered to a group of friends together, has a more probability of landing up in a mockery, as then everyone in group tries to out smart the salesperson.12. Many respondents are outside the confines of Delhi did not provide the required information.13. Sometimes information provided by respondent may influenced by personal problems leading to biasness. 86
  87. 87. 14. The research had to be completed within a small span of time. This has limited researcher from choosing a satisfactory number of sample.15. The sample size collected for the research work is in sufficient.16. As the research was confined to a limited field. So the finding cant be applied universally.17. Time Boundation: For a project having places Noida, Greater Noida, Faridabad and Gurgaon, 8 weeks were not appropriate which is one of the major limitation of the project.18. Customers Attitude: Some customers were hesitating to give appropriate data. So some of the data collected in this survey is assumed.19. Some of the customers were very busy while our visit and ranked the customer sat is faction data sheet in a hurry. It might be possible they have ranked wrong in hurry.20. The numbers of questionnaire filled are not enough to get the best results from analyzing them. The reason for the same is due to ignorance of few customers. We visited 70 OEM’s out of which only 49 gave us feedback.21. While calculating percentage of customer satisfaction by weighted average method, weights of attributes are assumed to be uniform. 87
  89. 89. Issues and challenges for the company: 1. The company doesn’t spend much on marketing and it actually may be a reason for not being a market leader among the private players. 2. The company has yet to make any significant presence in the rural sector as the brand name is yet not famous in the rural India. 3. The company has a conservative approach and they believe in steady and very safe progress , which actually results them to be in a position where they are behind some of the more aggressive market players like ICICI 4. In India the rural market and middle class society still don’t have faith in private insurers and their genuinity. 5. The rural India and middle class India still don’t have faith in private insurers.The Kotak Mahindra company is competing with private companies which are spendinghuge amounts on marketing, so to maintain a competitive edge with these companies interms of acquiring market shares would be a tough task. 89
  90. 90. CONCLUSION• Kotak Mahindra bank Ltd works on the principle of suppliers market rather than customers market which is diluting the relationship with the customers. Therefore it is very important for them to adapt to customers market for sustaining good relationship.• Kotak Mahindra bank Ltd products should be priced a bit low to capture more market, its price should be competitive with the competitors pricing.• Kotak Mahindra bank Ltd should reduce the lead time (time between the borrowings and lending) to improve the satisfaction level of the customer.• Supply chain Management should be made more effective. 90
  91. 91. LEARNINGS 91
  92. 92. LEARNINGS1) Marketing research by itself does not arrive at marketing decisions, nor does itguarantee that the organization will be successful in the marketing its products. However,when conducted in a systematic, analytical, and objective manner, marketing research canreduce the uncertainty in the decision-making process and increase the probability andmagnitude of success.2) In Question construction we should keep these things in mind. • Keep the language simple. • Keep the questions short. • Keep the number of questions to a minimum.3) Advantages of sampling over complete enumeration are cost, accuracy, timelessnessand amount of information.4) For a research study to be accurate, its findings must be both reliable and valid.[Reliability-Research means that the findings would be consistently the same if the studywere done over againValidity-A valid measure is one that provides the information that it was intended toprovide.] 92
  93. 93. 5) When we conduct a customer feedback survey, what we ask the customers isimportant. How, when, and how often we ask these questions are also important.However, the most important thing about conducting a customer feedback survey is whatwe do with their answers.Apart from the above mentioned learning’s there were few more learning’s mentionbelow • I learned the practical working of marketing department. • I learned about the integrity of bank industry which are major players of bank industry & why they are ahead the KOTAK BANK. • My project was customer interaction based that has given me lot of confidence to interact with different kind of people. • During my project I learned to work in team. • During my eight weeks project I learned about products and services( • Borrowings, landings, credit cards, e-banking) of Kotak Bank and while interacting with customers the various uses of these products. • Interaction with customers is the most crucial aspect for any business and with the project like this has given me approach to interact with the customers. • Throughout my life I have heard people say, have patience, which I was unable to learn throughout my life but during last two months I have learned to be patient 93
  94. 94. 94
  95. 95. QUESTIONNAIRE 95
  96. 96. QUESTIONNAIRE1. Do you have any account with Kotak Mahindra Bank? Yes No2. If yes which account you have? • Saving account • Current account • FDs3. Are you aware about all the products and services offered by bank? Yes No4. Have you ever use credit card? If yes then which bank? • Kotak • HDFC 96
  97. 97. • ICICI • SBI5. Are you aware about Kotak Mahindra Bank Credit Card? Yes No6. If yes which credit card you used? • Fortune Gold Card • Trump Gold Card • League Platinum Card • Royals Signature Card 7. Do you avail all the services offered by Kotak bank? Yes No 97
  98. 98. 8. From where you know Kotak Mahindra bank?• T.V• Newspapers• Internet• Friends/colleagues• Magazines 9. How is your overall experience with the Kotak bank?• Excellent• Very good• Fair• Poor• 10. Are you happy with the products/services offered by banks? Yes No 98
  99. 99. 11. Any of your friend/relative deals with the Kotak Mahindra bank? Yes No12. How you rate bank performance towards consumers? Excellent Very Good Fair Poor13. Have you invest in Kotak securities limited? Yes No14. E-banking new facility of bank, how is it performed according to u? Excellent Very Good Fair Poor15. Is E-banking fulfill all your banking transactions? Yes No 99
  100. 100. 6. Any grievances/suggestions want to write,if yes then write in space given below………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. 100
  101. 101. BIBLIOGRAPHY 101
  102. 102. BIBLIOGRAPHYBooks and journals • Kothari C R, Research Methodology,New age Publication,2005 • Aggrawal B.M., Business Statistics • Kotler Philip, Marketing ManagementWebsites • • • • 102