70878495 kotak-mahindra-bank

A
PROJECT REPORT ON
A COMPARITIVE ANALYSIS OF
DIFFERENT PRODUCT AND MARKETING
STRATEGIES OF KOTAK MAHINDRA
BANK W.R.T OTHER BANKS

PREFACE

The industrial scenario of economy is highly competitive and constantly
changing. To serve this highly competitive scenario practical studies are
much more important with theoretical studies. In India the significance of
MBA course is increasing drastically. Amongst all the PG courses MBA is
most favored. As a partial fulfillment of third semester the students have to
take a summer training of 6 to 7 weeks at any company and prepare a project
report on the basis of that practical experience.

Indian economy is growing at a considerable rate. The growth of GDP in
India is 8% per annum. The major sector contributing to the growth of GDP
is service sector and it is approximately 63% to GDP. Banking is one of the
main pillars of service sector. So I have decided to take exposure of banking
sector by taking practical training at KOTAK MAHINDRA BANK which is
one of the reputed private banks.

The aim of KOTAK MAHINDRA BANK is customization & people
cantered banking. Customized banking system can be achieved by provided
what customer actually wants. So we want to check weather KOTAK
MAHINDRA BANK is successful or not. As a part of this study I have
decided to prepare a project report on “A COMPARITIVE ANALYSIS OF
DIFFERENT PRODUCT AND MARKETING STRATEGIES OF KOTAK
MAHINDRA BANK W.R.T OTHER BANKS”.

The study of this topic is helpful to me in analyzing customer satisfaction &
loyalty to the services which they are using at the KOTAK MAHINDRA
BANK. This study will also be helpful to us in analyzing the information
about what change customer want from the existing services. This report
also gives me the overall satisfaction level of customer from the KOTAK
MAHINDRA BANK & how the customers are loyal to the bank. This report
also includes graphical representation wherever it feels necessary. Finally, it
is indeed excellent opportunity for us to present this report and a matter of
esteem honors itself. After successful completion of training it is golden
experience for me of banking sector. And I also know how the different
departments are working.

ACKNOWLEDGEMENT

First of all I am thankful to KOTAK MAHINDRA BANK and Branch
Manager Mr. Pranaya Thapliyal for giving me permission to take the
summer training and my project guide Mr. Dhirendra Singh for his support
in this project. I would also like to thank the staff members of the bank for
providing us information about the different departments of the bank. I
would like to

Finally I am glad to thank our all faculties who have provided me substantial
guidance & support in preparation of this project. This successful completion
of this project could not have been possible without their co-operation and
support.

EXECUTIVE SUMMARY

T h e p r o j e c t i s b a s e d on t h e s al es s t r at e gi e s fo r t h e
B a n k i n g p r o d u c t s wi t h a s pe c i a l r ef e r e n c e t o KOT A K
MA HI N DRA B AN K a nd t he c on s u m er p er ce p t i o n a bo u t
the same.
• F i r s t a n d F o r e m o s t , t he pu r po s e o f Ko t a k Ma h i n dr a
B a n k i s t o fu l f i l l t h e n ee ds fo r i nve s t m e n t u n de r on e
roof.
• T h i s p r o j e c t s ho ws , t he co m m o n m an ha s s t a r t e d
c a p i t a l m a r k e t t e r m l i ke bu l l a nd b ea r e xp l o d e n e w
time.
• I t gi v e s t h e d e t a i l vi e w of t he r egu l a t o r y fr a m e wo r k
f o r t h e Ko t a k Ma h i n d r a B an k
• T h e fo c u s s h i f t t o va r i ou s pr od u c t s o f KOT A K
MA HI N DRA BA N K t o c at er t o t he ne ed s s u c h as
r e t u r n e x p l a n a t i o n , fi na n c i a l po s i t i o n , r i s k t o l e r a n c e ,
etc.
• T h e n e x t p h a s e l o o k u p t he i n ves t m e n t i n gr o wt h
oriented stock wh i c h ar e ava i l a b l e at at t r a c t i ve
relative valuation.

F u r t h e r t o t h i s , pr oj ec t pr oc e e d s wi t h t he r es ea r c h
d e s i g n e d i n t h e l i gh t of t h e c or e obj ec t i ve s of t h e s t u dy
along wi t h t h e s u b obj ec t i ve s t h at a r e gi ve n du e
c o n s i d e r a t i o n t h r o u gh ou t t h e r es ea r c h. I t a l s o e nl i s t s a l l
t h e d a t a s o u r c e s as t o by whi c h me a ns t h e s t u dy h as
g a i n e d m o m e n t u m . T he d at a h as b ee n c ol l e c t e d by
v i r t u e o f q u e s t i o n n a i r es a nd we bs i t e s , r es pe c t i ve l y . Th e
scope of the s t u dy is s u gge s t e d in f a vor of the
c o m p a n i e s s t r i v i n g t o em er ge as s u p er p owe r s dr a wn
o u t b y t h e s u r v e y . Th es e co m p a n i es c an fi ne t u ne t he i r
p r o s p e c t i v e o n e s a nd ca n gr ab t h e o pp or t u n i t i e s of t h e
t r a n s f o r m i n g t h e we a kn e s s of ot he r i n t o t he i r o wn
strength.

RESEARCH OBJECTIVES

Various Objectives for conducting the research and analysis are listed as
under:

Access the Market Potential of Kotak Mahindra Bank Saving Account with
the help of a survey conducted on a total of 50 Respondents .

Study how new distribution channels such as Internet Banking, ATM
facility, Phone Banking have changed the face of the Banking industry.

Study the impact of a customer centric approach being followed by the
Bank, and what is its benefit.

Compare the services offered by Kotak Mahindra Bank and the customer’s
satisfaction level of the same with that of other Banks in the Private sector,
and to access where the Bank has to improve.

Consideration of various promotional and marketing and advertising
strategies of Kotak Mahindra to the satisfaction among its
ultimate users and consumers

Finally to draw the various conclusion and recommendations on the basis of
the study conducted on specifically taking to consideration the services,
advertising and marketing strategies of the Bank.

SCOPE OF THE STUDY

This study helps in finding out the satisfaction of most important resource
that is human resource in Kotak Mahindra Bank.
⇒ This also helps in finding the effect ness of human resource policies in
organization.
⇒ The study provides knowledge of various products& investment services
of Kotak Mahindra Bank
⇒ The study helps to learn of work culture of organization.
⇒ The study of also helps to learn what as the various benefits available to
the advisor in an organization.
⇒ The study also helps the company to be aware of important that it’s has to
make in its incentives plan.

LIMITATIONS

The study could not be made that comprehensive due to time constraints.
Some customers feel uncomfortable to reveal some personal information
relating to income etc. it might have happened that some more essential
information could have been collected.

 Time constraint.
 Biases and non-cooperation of the respondents.
 Financial constraint.
 Geographical selectivity in study limiting to Delhi city only.

INDUSTRY PROFILE

BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Banks Regional Rural
Banks Banks in India Bank

(28) (27) (29) (102)
• Nationalized • Old Private
Bank Banks
• Other Public • New Private
Sector Banks Banks
(IDBI)
• SBI and its
Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative
Banks (55) Banks (31)

Here we more concerned about private sector banks and competition

among them. Today, there are 27 private sector banks in the banking

sector: 19 old private sector banks and 8 new private sector banks.

These new banks have brought in state-of-the-art technology and

Aggressively marketed their products. The Public sector banks are

Facing a stiff competition from the new private sector banks.

The banks which have been setup in the 1990s under the guidelines

of the Narasimham Committee are referred to as NEW PRIVATE

SECTOR BANKS.

New Private Sector Banks

• Superior Financial Services

• Designed Innovative Products

• Tapped new markets

• Accessed Low cost NRI funds
• Greater efficiency

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with

Assets expected to reach US$1 trillion by 2010. An expanding

economy, middle class, and technological innovations are all

contributing to this growth.

The country’s middle class accounts for over 320 million people.

In correlation with the growth of the economy, rising income levels,

increased standard of living, and affordability of banking products

are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution,

Focusing on the expansion of retail and rural banking.

Players are becoming increasingly customer - centric in their

approach, which has resulted in innovative methods of offering new

banking products and services. Banks are now realizing the

importance of being a big player and are beginning to focus their

attention on mergers and acquisitions to take advantage of

economies of scale and/or comply with Basel II regulation.

“Indian banking industry assets are expected to reach US$1 trillion by

2010 and are poised to receive a greater infusion of foreign capital,”

says Prathima Rajan, analyst in Celent's banking group and author of

the report. “The banking industry should focus on having a small

number of large players that can compete globally rather than having

a large number of fragmented players."

INRODUCTION

Current bank account is opened by businessmen who have a number of
regular transactions with the bank, both deposits and withdrawals. It is also
known as d
Current account can be opened in co-operative bank and commercial bank.
Incurrent account, amount can be deposited and withdrawn at any time
without giving any notice. It is also suitable for making payments to
creditors by using cheques. Cheques received from customers can be
deposited in this account for collection.
In India, current account can be opened by depositing Rs.500 (US $ 11) to
Rs.1,000 (US $ 22). The customers are allowed to withdraw the amount with
cheques and they generally do not get any interest. In India Co-operative
bankmay allow interest upto 1%.
Current account holder get one important advantage of overdraft facility.

Features of Current Bank Account

The main objective of current bank account is to enable the businessmen to
conduct their business transactions smoothly.
There is no restriction on the number and amount of deposits. There is also
no restriction on the withdrawals.
Generally bank does not pay any interest on current account. Nowadays,
some banks do pay interest on current accounts.

Current account is of continuing nature and as such there is no fixed period.

“Think Investment Think Kotak”

Banks like Kotak Mahindra, standard chartered, ICICI, HDFC, and
Citibank now bring your Bank Account and Debit card to your fingertips.
With Mobile commerce, you can perform a wide range of query-based
transactions from your Mobile Phone, without even making a call.

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 corporate.
The group has a net worth of over Rs.1, 800 crore and employs over 4,400
employees in its various businesses. With a presence in 82 cities in India and
offices in New York, London, Dubai and Mauritius, it services a 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) and Old Mutual (a
large insurance, banking and asset management conglomerate).

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management
Finance Limited. This company was promoted by Uday Kotak, Sidney A.
Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand
Mahindra took a stake in 1986, and that's when the company changed its
name to Kotak Mahindra

Finance Limited. Since then it's been a steady and confident journey to
growth and success.

• 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 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.
Kotak Securities launches kotakstreet.com - its on-line broking site.
Formal commencement of private equity activity through setting up of
Kotak Mahindra Venture Capital Fund.
• 2003 : Kotak Mahindra Finance Ltd. Converts to bank

CHAPTER-2

COMPANY’S PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of
India’s most reputed financial organizations. In Feb 2003, Kotak Mahindra
Finance Ltd., the group’s flagship company was given the license to carry on
banking business by the Reserve Bank of India (RBI).This approval creates
banking history since Kotak Mahindra Finance Ltd is the first company in
India to convert to a bank. The license authorizing the bank to carry on
banking business has been obtained from the RBI in tune with Section 22 of
the Banking Regulation Act 1949.
KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and
Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management
Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement
of Business on 11th Feb 1986.
The bank customers have access to entire VISA network of 4500 ATM’S in
India and 800000ATM’S worldwide accepted in more than 56000
establishments across India and 10 million worldwide. The customer also
has access to over 800 ATM’s with sharing arrangements with UTI BANK,
of these 125 are in the NCR.

Key group companies and their businesses

Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance
Ltd which was established in 1985, was converted into a bank- Kotak
Mahindra Bank Ltd in March 2003 becoming the first Indian company to
convert into a Bank. Its banking operations offer a central platform for
customer relationships across the group's various businesses. The bank has
presence in Commercial Vehicles, Retail Finance, Corporate Banking,
Treasury and Housing Finance.

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier
Investment Bank. KMCC's core business areas include Equity Issuances,
Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities

Kotak Securities Ltd. is one of India's largest brokerage and securities
distribution houses. Over the years, Kotak Securities has been one of the
leading investment broking houses catering to the needs of both institutional
and non-institutional investor categories with presence all over the country
through franchisees and coordinators. Kotak Securities Ltd. offers online and
offline services based on well-researched expertise and financial products to
non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra
Primus Limited) has been formed with the objective of financing the retail
and wholesale trade of passenger and multi utility vehicles in India. KMP
offers customers retail finance for both new as well as used cars and
wholesale finance to dealers in the automobile trade. KMP continues to be
among the leading car finance companies in India.

Kotak Mahindra Asset Management Company

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). KMMF
manages funds in excess of Rs 20,800 crore and offers schemes catering to
investors with varying risk-return profiles. It was the first fund house in the
country to launch a dedicated gilt scheme investing only in government
securities.

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 helps customers to take important financial decisions at every
stage in life by offering them a wide range of innovative life insurance
products, to make them financially independent.

BOARD OF DIRECTORS

Mr. K.M.Gherda – Executive Chairman

♣ Mr. Uday Kotak –Executive Vice Chairman and Managing Director

♣ Mr. Anand Mahindra –Co Promoter of Kotak Mahindra Bank and
Vice Chairman and Managing Director of Mahindra and Mahindra

♣ Mr. Cyril Shroff –Co Promoter

♣ Mr. Pradeep N Kotak –Agri Division of Kotak and Company Limited

♣ Dr. Shanker Acharya

♣ Mr. Shivaji Dam –Managing Director Kotak Mahindra Old Mutual
Life Insurance Limited

♣ Mr. C.Jayaram –Executive Director

♣ Mr. Dipak Gupta –Executive Director

CHAPTER-3

Product Detail
Ko t a k Ma h i n d r a Ba n k i s on e o f t he pr om i n e n t s u bs i d i a r i e s of
Ko t a k Ma h i n d r a gr o u p . Th e ac t i vi t i e s of t h e co mp a n y b ei n g
p a r a l l e l t o i t s o b j e c t i ve ar e ver y wi d e a nd c ove r a l l t h e
c o m p o n e n t s o f a Ba n k . Th e Ba s i c a r e a of Op e r a t i o ns i s t h e
B a n k i n g b u s i n e s s , o t h er pr od u c t s ar e m e a nt fo r t h e r e gu l a r
r e v e n u e g e n e r a t i o n . B e i n g a Ba n ki n g h ou s e, t h e c om p a n y i s
in r e gu l a r touch wi t h B an k i n g Accounts, Investment
S e r v i c e s , C o n v e n i e n c e B an k i n g a n d O t h e r S e r v i c es .

They offer complete solutions that address all your financial requirements,
whether you're an individual or a firm. From everyday banking to long term
investments — their offering covers it all. This wide range of products is
delivered to you with a genuine understanding of your specific need and
warm, personalised service.

Kotak Mahindra Bank, it's not about selling you many different products —
it's about working out a holistic, pragmatic solution that addresses your
financial needs. Through their varied products,they commit themselves to
becoming “banker” to the customer rather than being “asset financier” to our
customers.

Banking Accounts

There are three types of banking account:

 Savings Account
 Current Account
 Term Deposit

SAVINGS ACCOUNT
“Choose from our range of Savings Accounts”

KOTAK MAHINDRA has got a variety of options of savings accounts to
choose from for its customers according to their convenience and
requirements .These savings accounts offer attractive returns along with
personalized banking services at three convenient average quarterly
balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS
ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGS ACCOUNT) and at
Rs75000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly
balance levels as well the corresponding services and benefits try to ensure
the various customer needs and requirements.

Thus the three account opening options in savings account are as mentioned
above:

♣ EDGE SAVINGS ACCOUNT: Kotak Mahindra Bank´s Edge
Savings Account is a complete financial package customized to suit
individual banking needs. Its constant endeavour is to enable regular
financial transactions through online platform so that most of
payments can be made directly through your account or card.

Features & Benefits

Wide ATM access through the Kotak Mahindra Bank Debit Card

One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or
enquire balance at no extra charge!

Multiple Access Channels Access

An account through phone, mobile phone or internet to get information
about account balance or track transactions. One can even transfer funds
through Phone Banking or Net Banking.

Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills,
credit cards, online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque book
so that money from account is received by the beneficiary in the fastest
possible time.

Free investment account

One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting your
Bank Account. Besides this you get a consolidated view of all your mutual
fund investments across schemes with updated returns status, latest NAV
information and research reports.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into your
account to meet fund requirements when your withdrawals exceed the
balance available in your account, thereby providing you maximum
liquidity.

♣ PRO SAVINGS ACCOUNT:

Kotak Mahindra Bank´s Pro Savings Account is an account packed with
powerful features to provide a superior banking experience at a very
comfortable balance requirement. They provide a relationship manager who
will specifically take care of banking and investment needs.

Features & Benefits

Free ATM access all domestic VISA ATM network

Walk into any VISA ATM in India to check balance or withdraw cash
absolutely free. no longer have to worry about locating your Bank or Partner
Bank ATM – Use the first VISA ATM that you spot, for cash withdrawal or
balance enquiry transactions.

Multiple access channels

Access your account through phone, mobile phone or internet to get
information on your account balance or track your transactions. You can
even transfer funds through Phone Banking or Net Banking.

Free investment account

One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting
bank account. Besides this get a consolidated view of all the mutual fund
investments across schemes with updated returns status, latest NAV
information and research reports.


Use our free Payment Gateway to make online payments for utility bills,
credit cards, online trading of shares or even online shopping.


Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque book
so that money from account is received by the beneficiary in the fastest
possible time

Attractive returns

account into Term Deposits. These Term Deposits sweep back into your
account to meet fund requirements when your withdrawals exceed the
balance available in your account, thereby providing you maximum
liquidity.

Dedicated relationship manager

You get a one point contact for all your banking related queries and
transactions. Your relationship manager will also help you with financial
planning and sound investment decisions.

Free banking transactions

You can issue demand drafts or send cheques for collection on branch
locations without any charge to your account.

♣ ACE SAVINGS ACOUNT:

Kotak Mahindra Bank's Ace Savings Account has been designed as a
gateway to a world of financial benefits and privileged banking transactions.
The account carries benefits ranging from personal investment advisory
services to concierge services to free banking transactions. Onewill find that
this package of services and privileges is unmatched by any other savings
account in the market.

Features & Benefits

Free access at all domestic and international VISA ATMs

No longer have to worry about locating your Bank or Partner Bank ATM -
Use the first VISA ATM that you spot, for free cash withdrawal or balance
enquiry transactions. So walk into any VISA ATM in India or abroad to
withdraw cash or for balance enquiry.

Multiple access channels

Access the account anytime through land line, mobile phone or internet to
get information on account balance or track transactions. One can even
transfer funds through Phone Banking or Net Banking.


Use the free Kotak Payment Gateway to make online payments for utility
bills, credit cards, online trading of shares or even online shopping. All this
at the click of a mouse!


Transfer funds easily and with speed, to a beneficiary account at another
bank. One can avail of this facility by walking into any of branches or by
simple logging on to Net Banking. Also get a free multi-city cheque book so
that money from your account is transferred to the beneficiary's account at
any of branch locations, in the fastest possible time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all branches
for no extra charge.

Attractive returns


account into Term Deposits. These Term Deposits sweep back into account
to meet fund requirements when withdrawals exceed the balance available in
the account, thereby providing maximum liquidity.

CURRENT ACCOUNT
Kotak Mahindra Bank offers unparalleled advantages with its three Current
Account offerings. Whether small/ mid size business or an enterprise spread
across multiple locations in the country, would find a Current Account that's
just designed for you. These Current accounts offer attractive returns along
with personalized banking services at three convenient average quarterly
balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS
ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at
Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly
balance levels as well the corresponding services and benefits try to ensure
the various customer needs and requirements. With features ranging from
Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free
Trading Account & free Demat Account, and more!

Thus the three account opening options in savings account are as mentioned
above:

Edge Current Account

In need of a well equipped bank account to keep pace in all the business
endeavors. They offer the Kotak Edge Current Account, armed with Kotak
2-Way Sweep and the entire gamut of Banking Privileges, providing that
extra edge to get ahead. The feature rich Kotak Edge Current Account is the
ideal way to make money work harder.

Features & Benefits

Multi City Banking

Current account/s with Kotak Mahindra Bank will be recognized in every
other branch. One can just walk into a Kotak Mahindra Bank branch in any
of our branches across country to satisfy all the banking needs.

2 - Way Sweep* : Term Deposit linked Current Account

Kotak 2-Way Sweep ensures that money never stops working for you. Daily
balances, above a threshold level, in Current Account are automatically
swept out into Term Deposits (TD). This 'swept out amount' is brought back
into account to meet fund requirements when withdrawals exceed the
balance available in the account (or when the account balance goes below
the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin
advantages of attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders

Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra
Bank Branch location in India.

At-par Cheques

Get free At-par Cheques that are treated as 'local clearing' cheques across all
branch locations. All these at nominal costs.

Cheque Collection

All Outstation cheques, drawn on any of branch locations, are collected 'at
nominal charge' for you. The strong network of correspondent banks enables
us to collect cheques from 1600 locations across India at faster speed and
minimal cost

Mobile Banking and Alerts

Our Mobile Banking & Alerts service enables to access bank account on
Mobile Phone. One can access all your standing instructions (SI), any large
credits or debits, available balance, balance below AQB, any SI failure and
SIs successfully executed will be intimated to you via SMS

Pro Current account

You need a well equipped bank account to keep pace with you in the ever
changing business scenario. We offer you the Kotak Pro Current
Account, armed with Kotak 2-Way Sweep, as well as an entire gamut
of Banking Privileges and 'user-friendly' Convenience Banking
facilities. The feature rich Kotak Pro Current Account is the ideal way
to make your money work harder.

Key Features

• Dedicated Relationship Manager
• Free Demand Drafts & Pay Orders>
• Free At Home Services
• Better Forex rates and Efficient Trade Services
 ACE Current Account

In the need of a well equipped bank account to keep pace with you in the
ever changing business scenario. They offer you the Kotak Ace Current
Account, armed with Business benefits and exclusive Ace Privileges and an
entire gamut of banking conveniences especially designed for you. The
feature rich Kotak Ace Account is the ideal way to make money work harder

Term Deposits

Key Features

• Ease and convenience of operation
• Liquidity through overdraft or sweep-in facility
• No penalty on pre-mature encashment
• Nomination facility available

Give your portfolio stability of returns and safety and liquidity. Invest in
Kotak Bank Term Deposit. It offer attractive returns on term deposits and
investing in them is really simple and convenient.

Features & Benefits

Ease and convenience of operation

For the first time in India, New to Bank customer can also apply online for
term deposit.

An existing customer,can place a term deposit through Phone Banking or
Net Banking. What's more, one can even renew this deposit by placing an

instruction over phone. Needless to mention, he can do all this and more by
walking across into any of branches.

Liquidity through overdraft or sweep-in facility

Deposit will be available to you should you need them in case of an
emergency. One can avail upto 85% overdraft against term by paying 2%
above deposit rate. This facility is available for deposits above Rs.50,000 for
a tenure of 181 days or more. One can also choose to link term deposit to
savings / current account, whereby if need be, term deposit will
automatically be encashed to meet withdrawal requirement.

No penalty on pre-mature encashment

In case term deposit is pre-maturely encashed,one will earn interest at the
rate prevailing on the date of deposit for the withdrawn amount.

Nomination facility available

One can avail this facility for each & every account that open with us i.e.
nominate different persons for different term deposit accounts can choose to
change the nominee through a declaration in the appropriate form to revise
the nomination during the term of the deposit.

INVETSMENT SERVICES

“Making your money grow”

At Kotak Mahindra Bank,can recognise that financial needs vary, not just
amongst individuals, but across the different stages of your life. They have
years of experience in helping people put together an investment portfolio
that works best for them.

DEMAT

Key Features

• Efficient depository services that allow you to hold your shares in
convenient, "demat" formats

• Leverage opportunities in the stock-market when you spot
them

It offers streamlined, efficient depository services that allow to hold shares
in the convenient "demat" formats and leverage opportunities in the stock-
market when you spot them Being a brokerage house, the company is in
regular touch with the share market and its relative indexes like NSE &BSE,
NCDEX. NSDL, CSDL. L e t ’ s u n de r s t a n d t he r el at i ve t er ms :

S E B I ( S t o c k Ex c h a n g e bo ar d o f I nd i a )
I t c h e c k o u t o n N S E a nd BS E an d al l t y pe o f s ha r e t r ad i n g
( Bo t h p r i m a r y a n d s e c o n d a r y ma r ke t )

N S E & B S E : - Kotak Mahindra Bank a l l o ws t o co s t u m e r t o t r a d e
i n s h a r e wi t h NS E a n d B S E bo t h ( i n pr i m ar y a nd s ec on d a r y
m a r k e t b o t h ) . I n B S E co s t u m e r ca n t r ad e i n 24 5 2 s t o c ks an d
i n NS E c o s t u m e r c a n t r a d e i n 93 3 co m p a n i e s . T he i nd ex of
N S E i s N i f t y a n d fo r BS E S e ns ex

NSDL AND CSDL
Kotak Mahindra Bank a l l o w t o c os t u m er t o i nve s t i n mu t u a l fu n d
a n d bo n d s . NS DL ( N a t i o n a l s ec u r i t y d ep os i t o r y l i m i t e d ) a nd

C S DL ( Ce n t r a l s e c u r i t y d ep os i t or y l i m i t e d ch ec k ou t o n t h i s
type of investment

M C X A N D NC D E X
Kotak Mahindra Bank a l s o al l o w t o co s t u m e r to trade in
commodity by MCX ( Mu l t i C om m o d i t y e xc ha n ge ) a nd
N C D E X ( N a t i o n a l C o m m o d i t y d ai l y ex ch a n ge . In N C DE X 5 5
commodity are to trade

PRODUCTS OFFERED BY KOTAK MAHINRA BANK

The following are the various products of Kotak Mahindra Bank:

 DEMAT & ON LINE TRADING ACCOUNT:

The 3-in-1 account integrates your banking, broking and demat accounts.
This enables you to trade in shares without going through the hassles of
tracking settlement cycles, writing cheques and Transfer Instructions,
chasing your broker for cheques or Transfer Instructions etc.

 I N I T I A L P UB L I C O F F E R S ( I P O ’ S )

I n t h e a b o v e p r o d u c t s we h ave di s c u s s e d i nve s t m e n t i n
e q u i t y t h r o u g h s e c o n d ar y m ar ke t s . a no t h er wa y of i nve s t i n g
i n e q u i t y m a r k e t s i s t h r o u gh t he pr i m ar y m ar ke t r ou t e

. wh e n e v e r a c o m p a n y c om e s ou t wi t h a n i n i t i a l pu b l i c
o ff e r i n g y o u m a y c h o o s e t o a pp l y fo r t he s ha r e . Ba s e d on
n u mb e r o f v a l i d a p p l i c a t i o n r e ce i ve d , t h e c om p a n y wo u l d
t h e n a l l o t t h e s h a r e t o ap pl i c a n t s .

T h e o f fl i n e wa y o f i n v e s t i n g i n a n IP O i s by f i l l i n g ph ys i c a l
a p p l i c a t i o n fo r ms , c h eq u e s . A nd s u b mi t t i n g t he f or m s
t h r o u g h y o u r b r o k e r . Wi t h KOT A K MA HI N DRA BA N K a l l
y o u h a v e t o d o i s f i l l i n g nu mb e r o f s h ar e o n t h e s i t e a nd
submit.

 D E R I VA T I VE S

Cu s t o m e r s wi t h d i f f e r e n t t yp es of r i s k pr of i l e c an u s e
derivatives.
• He d g i n g t h e c a s h m ar ke t po s i t i o n – i de al f or l ow r i s k
profile.
• T a k i n g a d v a n t a g e o f ar b i t r a ge opp or t u n i t y i n equ i t y a nd
d e r i v a t i v e s ma r k e t s – i d ea l fo r l o w r i s k pr of i l e
• T a k i n g a v i e w o n s t oc k/ i n d e x fo r as l on g a s 3 m on t h
p e r i o d – me d i u m r i s k pr o f i l e
• S p e c u l a t i v e t r a d i n g- h i gh r i s k pr of i l e

KOT A K MA HI N DR A B AN K o f f er s o nl i n e i n ves t m e n t i n
fu t u r e a n d o p t i o n , wi t h b en e f i t o f au t o m a t e d s e t t l e m e n t s an d
online risk monitoring system

Mutual Funds

Key Features

• Assitance at every step of the investment process
• An experienced research team to analyse and research the Mutual
Funds available in the market
• Portfolio assistance

h team analyses and researches the Mutual Funds available in the market,
helping you make more informed decisions. The recommendations take into
account all relevant factors including the investment philosophy of the Asset
Management Company, portfolio quality, risk-adjusted returns and market
trends.

The Mutual funds on advisory list range form Debt to Equity funds and are
drawn from top performing schemes of renowned Mutual Fund houses like
Franklin Templeton, Kotak, Reliance, Prudential ICICI etc.Relationship
Manager will recommend the funds that suit the investment objectives.

I n s t e a d o f b u y i n g s h a r e s o f d i f f e r e n t co mp a n i e s t r a c ki n g t h e
price movement’s performance of t h e c om p a n y , gr o wt h
p r o s pe c t s o f t h e i n d u s t r i es e t c . a nd t he n t a ki n g y ou r o wn
b u y / s e l l d e c i s i o n , y o u ma y c on s i d er ma ki n g i nve s t m e n t i n
e q u i t y / d e b t m a r k e t t h r o u gh t he mu t u a l fu nd r ou t e. Mu t u al
fu n d i s a S E B I r e g i s t e r e d e nt i t y t h at p oo l s t h e mo n e y o f
m a n y i n d i v i d u a l s ’ i n v e s t or s t o pu r c ha s e t he s t oc ks , bo nd or
o t h e r fi n a n c i a l i n s t r u m e nt s . pr o f e s s i o n a l

Ma n a g e m e n t a n d d i v e r s i f i c a t i o n ar e t h e t wo pr i m a r y be ne f i t s
o f mu t u a l fu n d i n v e s t i n g. Fo r b egi n n e r s , or fo r cu s t o m e r who
a r e u n a b l e t o s p e n d t i m e o n r es ea r c h i n g s t oc ks t h e ms e l ve s ,
m u t u a l fu n d i s a n i d e al r ou t e fo r a i nve s t m e n t i n equ i t y.
I n v e s t i n g i n m u t u a l fu nd s o ff l i n e i nvo l ve s , t r a c ki n g d own
t h e a g e n t s a p p o i n t e d b y t he m u t u al fu nd s A MC s , f i l l i n g
l e n g t h y fo r ms , wr i t i n g ch eq u e , r u s hi n g t o t he of f i c e of t h e
a g e n t s b e f o r e t h e c u t of f t i mi n g t o e ns u r e t h at t h e de s i r e d
NAV is allotted

C O N VE N I E N C E B A NK I N G

“Anywhere, Anytime Banking”

In today's day and age time is money. You work hard and have a busy
schedule. Doing banking should be easy and convenient and not add to
worries.

Kotak Mahindra Bank realize this and have specially tailored a wide range
of value added products and services to make money work for you. These,
coupled with the highest standard of customer care will make life simpler
and easier.

 Multiple Banking Channels

Today the technology driven banks are finding various means to reduce
costs and reach out to as many customers as possible spread over a diverse
area. This has led to using multiple channels of delivery of their products.

 ATM (Automatic Teller Machine):

An ATM is basically a machine that can deliver cash to the customers on
demand after authentication. However, nowadays we have ATMs that are
used to vend different FMCG products also. An ATM does the basic
function of a bank’s branch, i.e., delivering money on demand. Hence
setting of newer branches is not required thereby significantly lowering
infrastructure costs.
Cost reduction is however possible only when these machines are used. In
India, the average cash withdrawal per ATM per day has fallen from 100 last
years to 70 this year. Though the number of ATMs has increased since last
year, it is not in sync with the number of cards issued. Also, there are many
dormant cardholders who do not use the ATMs and prefer the teller
counters. In spite of these odds, Indian banks are increasing the number of
ATMs at a feverish pace. These machines also hold the keys to future
operational efficiency
Account holders of Kotak Mahindra Bank Saving Account having Visa
Electron Debit Card can access other Banks ATM machines unlimited times

per month for free, after that the Account holder has to pay nothing for the
transaction. But also holders of ATM cards cannot access machines
belonging to other Banks.
The number of ATM machines installed by Kotak Mahindra Bank is 20 in
Delhi and the All India tally is 156 machines. When this figure is compared
to ICICI Bank which has thrice the number of machines in Delhi or HDFC
Bank which has nearly twice the number of machines in Delhi, this is
worrying for Kotak Mahindra Bank.
“Growth In ATM Machine With Increased Use”
The Table below shows the number of ATM machines belonging to various
banks in India:-
NAME OF BANK NUMBER OF ATM NUMBER OF ATM
MACHINES MACHINES
(ALL INDIA BASIS) (DELHI)

KOTAK MAHINDRA 250 60
Bank
ICICI Bank 560 112
HDFC Bank 625 66
IDBI 350 43
CITIBANK 160 22
HSBC 103 21
AMN Amro 40 13
UTI 507 -
GTB 250 20

From the above table we can clearly see that HDFC Bank is the Bank which
has highest number of ATM machines on All India basis, this is followed by
ICICI Bank, then UTI.

When we look at the concentration of machines in the Delhi Region we see
that out of ICICI Bank’s 560 Machines 112 are located in Delhi representing
20%.
The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC Bank
is 11.8%, IDBI Bank is 12.3%, and CITIBANK is 13.75%.
 Net Banking:

Net banking means carrying out banking transactions via the Internet. Thus
the need for a branch is completely eliminated by technology. Also this
helps in serving the customer better and tailoring products better suited for
the customer.
A customer can view his account details, transaction history, order drafts,
electronically make payments, transfer funds, check his account position and
electronically communicate with the bank through the Internet for which he
may have wanted to visit the bank branch.
Net banking helps a bank spread its reach to the entire world at a fraction of
the cost
 Phone Banking:

This means carrying out of banking transaction through the telephone. A
customer can call up the banks help line or phone banking number to
conduct transactions like transfer of funds, making payments, checking
of account balance, ordering cheques, etc. This also eliminates the customer
of the need to visit the bank’s branch.
 Mobile Banking
:

Banks can now help a customer conduct certain transactions through the
Mobile Phone with the help of technologies like WAP, SMS, etc. This helps
a bank to combine the Internet and telephone and leverage it to cut costs and
at the same time provide its customer the convenience. Thus it can be seen
that tech savvy banks are tapping the entire above alternative channels to cut
costs improve customer satisfaction

SMS Banking

Kotak Mahindra Bank's SMS Banking service enables you to access your
bank account, investment account and demat account on your Mobile Phone.
Now get latest update on your account balance, salary credits, large debits,
large credits, holding value and much more, on your mobile anytime.

INTERNET BANKING
INTRODUCTION
The Internet banking is changing the banking industry and is having the
major effects on banking relationships. Internet banking involves use of
Internet for delivery of banking products & services. It falls into four main
categories, from Level 1 - minimum functionality sites that offer only access
to deposit account data - to Level 4 sites - highly sophisticated offerings
enabling integrated sales of additional products and access to other financial
services- such as investment and insurance.

DRIVERS OF CHANGE

Advantages previously held by large financial institutions have shrunk
considerably. The Internet has leveled the playing field and afforded open
access to customers in the global marketplace. Internet banking is a cost-
effective delivery channel for financial institutions. Consumers are
embracing the many benefits of Internet banking. Access to one's accounts at
anytime and from any location via the World Wide Web is a convenience
unknown a short time ago.

The primary drivers of Internet banking are:
· Improve customer access
· Facilitate the offering of more services
· Increase customer loyalty
· Attract new customers

OTHER SERVICES

BANKING HOURS

Kotak Mahindra Bank Account holders have been able to infer that Branch
Banking is the second most Frequent Point of Interaction with the Bank. The
Average Banking Hours is a very important aspect associated with any
Bank. In today’s fast paced life where people who hold Accounts with the
Bank are busy working it is important that they can find a way to visit the
Bank without having to miss out on work.

The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm,
the Bank is open to the public for ten hours. These timings are convenient
for especially those Account holders who are working, these people can visit
the Bank after their Office finishes.
Apart from the Average Banking Hours Kotak Mahindra Bank offers to it’s
Account holders 24 Hour Branch, 365 Days Branch and the facility of
Sunday Banking.
Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in
India, this is a big boon for people who cannot take the time out to visit the
Bank during the normal working hours and is also very handy during
emergencies.

the 365 Day Branch of Kotak Mahindra Bank is also unique and the only
other Bank offering this service is ABN Amro , this Branch is open
regardless of the fact that it is a Sunday or a public holiday.
Sunday Banking is very useful for people who are busy throughout the week
and the only day when they find the time is Sunday. Other Banks offering
this service apart from Kotak Mahindra Bank are ABN Amro and
CITIBANK.

Best Compliments Card – the perfect gift
Introducing Best Compliments Card - the prepaid card from Kotak
Mahindra Bank. It lets your loved ones choose their own gift or shop or
enjoy at any place that accepts Visa cards, be it a shopping mall, a
restaurant or a multiplex. So go ahead and give someone the perfect gift!

No Kotak Mahindra Bank account required

Not restricted to a single brand or outlet - accepted at over 3 lakhs
merchant establishments in India that accept Visa cards
Can be used at your convenience - no need to spend the entire value
in a single purchase
Attractively packaged and ready-to-gift
Available at all Kotak Mahindra Bank branches
Valid for two years from date of issue of card

COMPETIVE PROFILE

HDF C BA N K

The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of
the RBI's liberalization of the Indian Banking Industry in 1994.

The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

As of March 31, 2008, the Bank’s distribution network was at 761
Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605
ATMs in 320 cities as of March 31, 2007. Against the regulatory
approvals for new branches in hand, the Bank expects to further expand
the branch network by around 150 branches by June 30, 2008. During the
year, the Bank stepped up retail customer acquisition with deposit
accounts increasing from 6.2 million to 8.7 million and total cards issued

(debit and credit cards) increasing from 7 million to 9.2 million.Whilst
credit growth in the banking system slowed down to about 22% for the year
ended 2007-08, the Bank’s net advances grew by 35.1% with retail
advances growing by 38.6% and wholesale advances growing by 30%,
implying a higher market share in both segments.

The transactional banking business also registered healthy growth With
cash management volumes increased by around 80% and trade services
volumes by around 40% over the previous year. Portfolio quality as of
March 31, 2008 remained healthy with gross nonperforming assets at 1.3%
and net non-performing assets at 0.4% of total customer assets. The
Bank’s provisioning policies for specific loan loss provisions remained
higher than regulatory requirements.

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

PERSONAL BANKING

Loan Product Deposit Product Investment &
Insurance

• Auto Loan • Saving a/c • Mutual Fund
• Loan Against • Current a/c • Bonds
Security • Fixed deposit • Knowledge
• Loan Against • Demat a/c Centre
Property • Safe Deposit Lockers • Insurance
• Personal loan • General and
• Credit card Health
• 2-wheeler loan Insurance
• Commercial • Equity and
vehicles finance Derivatives
• Home loans • Mudra Gold

• Retailbusiness Bar

banking
• Tractor loan
• Working Capital

Finance
• Construction
Equipment
Finance
• Health Care
Finance
• Education Loan
• Gold Loan

Cards Payment Services Access To Bank

• Credit Card • NetSafe • NetBanking
• Debit Card • Merchant • OneView
• Prepaid Card • Prepaid Refill • InstaAlert
• Billpay MobileBanking
• Visa Billpay • ATM

• InstaPay • Phone
------------------------------- Banking
• DirectPay
- • Email
• VisaMoney Transfer
Forex Services Statements
• e–Monies Electronic
------------------------------- • Branch
Funds Transfer
- Network
• Online Payment of Direct
• Product & Services
Tax
• Trade Services
• Forex service

Branch Locater
• RBI Guidelines

WHOLESALE BANKING

Corporate Small and Medium Financial Institutions
Enterprises and Trusts

• Funded • Funded Services BANKS
Services • Non Funded • Clearing Sub-
• Non Funded Services Membership
Services • Specialized Services • RTGS –
• Value Added • Value added submembership
Services services • Fund Transfer
• Internet • Internet Banking • ATM Tie-ups

Banking • Corporate Salary a/c
• Tax Collection
Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

HDFC BANK Market Strategy Emphasizes The Following:

• Increase market share in India’s expanding banking and
financial services industry by following a disciplined growth strategy
focusing on quality and not on quantity and delivering high quality
customer service.
• Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating
costs.
• Maintain current high standardsfor asset quality through disciplined
credit risk management.
• Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
• Continue to develop products and services that reduce bank’s cost of
funds.
• Focus on high earnings growth with low volatility.

Products and Services – HDFC Bank

Product range: The following is the product range offered at HDFC:
While various deposit products offered by the bank are assigned
different names, the deposit products can be categorized broadly into
the following types. Definition of major deposit schemes are as under:
-

1. Demand deposits:

"Demand Deposits" means a deposit received by the bank which is
withdrawn able on demand;
a) Savings Account:
"Savings Deposits" means a form of Demand Deposit which is subject
to restrictions as to the number of withdrawals as also the amounts of
withdrawals permitted by the bank during any specified period;
HDFC provides with saving bank account with the usual facilities,
and one also gets a free ATM card, intrbranch banking, bill payment
facilities, phone banking and mobile banking.

2. Term Deposits:
"Term Deposit" means a deposit received by the bank for a fixed
period withdraw able only after the expiry of the fixed period and
includes deposits such as Recurring / Double Benefit Deposits / Short
Deposits / Fixed Deposits / Monthly Income Certificate / Quarterly
Income Certificate.

3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which
can be withdrawn on giving at least one complete banking day's
notice.

4. Current Account:

"Current Account" means a form of Demand Deposit wherefrom
withdrawals are allowed any number of times depending upon the
balance in the account or up to a particular agreed amount and will

also include other deposit accounts which are neither Savings Deposit
nor Term Deposit; The account holder gets a personalized cheque
book, monthly account statements, and Inter-branch banking.

5. Corporate Account:-

These are more commonly known as Salary Accounts. These are
account in HDFC bank with zero balance. These are given to salaried
people. These accounts are opened by the employer for the employees
to deposit the salary of the employee directly to the account.

6. HDFC Bank Preferred:-
A preferential Savings Account where in, one is assigned with a
dedicated Relationship Manager, who’s you’re the one point contact.
One also get privileges like fee waivers, enhanced ATM withdrawal
limit, priority locker allotment, free Demat Account and lower interest
rates on loans

7. Sweep-In Account:-

A Fixed Deposit linked to one’s Savings Account. So, even if one’s
Savings Account runs a bit short, one can issue a cheque (or use ATM
Card). The money is automatically swept in to one’s Savings Account
from one’s Fixed Deposit Account. The excess funds in the account
are directly transferred to the fixed deposit account of the account
holder.

8. Super Saver Account:

It gives one an overdraft facility up to 75% of one’s fixed deposit. In
an emergency, you can access your funds while your fixed deposit
continues to earn high interest.

9. HDFC Bank Plus:

Apart from Regular and Premium Current Accounts HDFC also has
HDFC Bank Plus, a Current Account and then something extra for the
HDFC bank customers. One can transfer up to Rs. 50 lakh every
month at no extra charges, between the four metros. One can also
avail cheque clearing between the four metros, get cash
delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts,
at-par cheque, outstation cheque clearing facility, etc.

10. Demat Account:

One can conduct hassle-free transactions on the stock market for one’s
shares. The shares held by the customer are protected from damage,
loss and theft, by maintaining these shares in electronic form. This
account can be accessed through Internet too.

11. Loans:

There are a variety of loan schemes offered like personal loans, new
car loans, used car loans, loan against shares, consumer loans, two
wheeler loans, and home loans. These are available with easy payback
in monthly instalments. Loans are sanctioned with easy
documentation and quick delivery.

Home Loan - Home loans for individuals to purchase (fresh / resale)
or construct houses. Application can be made individually or jointly.
HDFC finances up to 85% maximum of the cost of the property
(Agreement value + Stamp duty + Registration charges) based on the
repayment capacity of the customer

Home improvement loan
HIL facilitates internal and external repairs and other structural
improvements like painting, waterproofing, plumbing and electric
works, tiling and flooring, grills and aluminum windows. HDFC
finances up to 85% of the cost of renovation (100% for existing
customers) subject to market value of the property.

Purpose
 External repairs
 Tiling and flooring
 Internal and external painting
 Plumbing and electrical work
 Waterproofing and roofing
 Grills and aluminum windows

 Waterproofing on terrace
 Construction of underground/overhead water tank
 Paving of compound wall (with stone/tile/etc.)
Home extention loan

HEL facilitates the extension of an existing dwelling unit. All the
terms are the same as applicable to Home Loan.
• Purpose
HDFC Home Extension Loan makes it convenient for you to extend
or add space to your home. Be it an additional room, a larger
bathroom, or even enclosing an open balcony.
• Maximum loan
• 85% of the cost of extension
• Maximum Term
20 years subject to your retirement age
• Applicant and Co- Applicant to the loan
Home Loans can be applied for either individually or jointly.
Proposed owners of the property, will have to be co-applicants.
However, the co-applicants need not be co- owners.

• Adjustable Rate Home Loan

Loan under Adjustable Rate is linked to HDFC's Retail Prime
Lending Rate (RPLR). The rate on your loan will be revised every
three months from the date of first disbursement, if there is a change
in RPLR, the interest rate on your loan may change. However, the

EMI on the home loan disbursed will not change*. If the interest rate
increases, the interest component in an EMI will increase and the
principal component will reduce resulting in an extension of term of
the loan, and viceversa.

ICICI BANK

ICICI Bank is the largest private sector bank & the second largest bank in
the country in terms of assets. It is a pan-India player with around 950
branches (including recently acquired Sangli bank). The bank has boosted
it’s overseas operations in the last three years and now has presence in 18
countries either through subsidiaries or representative offices .Together with
it’s subsidiaries , ICICI Bank offers a complete spectrum of financial
services & products ranging from commercial banking to investment
banking , mutual fund to insurance.
ICICI has a very compelling growth story ahead of it as Indian economy
continues to boom. The GDP growth in India has been an average 8% for the
last 3 years. Although I think that the market has some more downside left to
it, if I were to build a new position in ICICI, I would start buying here on
dips maybe in one-thirds or one-fourths.
Investment Rationale :

ICICI Bank will remain a one of the most fancied stocks among the
investors who believe in India’s long-term growth story.
• Retail banking though slowed down will remain focus area for ICICI
Bank
• Massive scale up in international banking
• Innovate approach to tap potential in Rural & SME sector
• Robust non-interest income compensating for slower growth in Net
Interest Income
• Sangli Bank acquisition will help the bank to improve CASA
deposits .

MARKETING STRATEGY OF ICICI BANK :

• India’s second largest bank
• 614 branches and extension counters
• 2200 ATM’S
• Biggest private sector bank in India
• Most valuable bank in India in terms of market capitalization
• Described by the competitors and industry expert in one word –

“Aggressive”

First In The Industry
• Introduced concept of branding in the Indian banking industry
• Process, People and Physical evidence – brought to life by ICICI
• Product Innovation – Put the ‘customer first’ in the true sense

• Cash on the celebrity fever – Introduced the concept of brand
ambassadors
• Introduction of DSA’s and DST’s
• Unleashed the power of the internet – introduced the concept of net
banking and e-mail marketing
• First bank to focus on retail banking as a driver for growth
• Comprehensive data centre availability & data protection solutions

In effect – changed and shaped the Indian Banking Industry

Focus Areas Of Marketing Efforts

• Target marketing and customer acquisition
• Share of wallet
• Channel strategy and management
• Relationship management and database marketing
• Product development & innovation
• Credit approval

Basis For Segmentation
• Occupation
= Different products for different occupational segment identified
• Income
= Minimum balance serves as a income segment barrier
• Geographical

= Concentrated on Tier 1 & Tier 2 Cities trying to extend reach
• Age
= Different products like student account.
Targeting:
Differentiated marketing strategy:
• Tailors its marketing campaigns to meet the needs of its target
prospects
• Creates differentiated product offering for different segment
• Use of technology in tracking customer segment.

Positioning:
• Core proposition – ‘Hum hain na’ – trust, credibility, total financial
solution provider (brought about through its cross selling effort)
• Modernization – process and physical evidence – technology as the
backbone and accelerator
• ICICI bank is absolute appalling. Their slogan of “Hum hain na” is
very apt, only that it applies to their customers (i.e. us poor mortals).
Hum hain na &&& to bank with ICICI.
• ICICI bank the most amazing bank with a punch line as “Hum Hain
Na”, i think they mean ” Hum hain - -na (not available)”
• (Earlier I was with ICICI) I must say they rock; very good bank with
great customer support.

DISTRIBUTION STRATEGY & CHANNEL STRATEGY OF ICICI
BANK

DISTRIBUTION STRATEGY:
• Cross selling of products as a major area of focus
• Creation of concept of DSA (Direct Selling Agent)
• Creation of concept of DST (Direct Selling Team)
• Effort on the part of the bank to reach the customer rather than
waiting for the customer
• Use of internet, mobile, ATM’s and other technological device to
reach and serve the customers
•

CHANNEL STRATEGY:

Red- 35% Branch
Blue- 47% ATM

Green – 6% Call centers
Violet- 5% Internet
Yellow- 7% COPS

PROMOTION STRATEGY, ADVERISING, PUBLIC RELATIONS,
OUT-DDOR ACTIVITIES, OTHER INITIATIVES OF ICICI BANK.

1) PROMOTION STRATEGY:

• Corporate branding
• Product branding

Brand: result of customer interactions
As Brand exists in the customers’ mind, Brand is entirely the product of
customer experiences. Every kind of interaction with the customer that they
can relate to our brand name leaves behind some perception that contributes
to, or detracts from Brand. Hence, every interface between our company
and the customer is a medium for building Brand.
Product Promotion:
• Aimed at generating sales
• Communicates product features and benefits
• Mainly through print media

• Point of purchase promotion tools for different products to reach the
relevant customer segment.

2) PUBLIC- RELATIONS :

Purpose - To deliver communication that is uniform in its message and yet
customised for specific target audiences
• Media relations
– Press conferences
– Press Releases
– 1-1 interviews
• Investor relations
• Analyst relations
• Government relations

3) OUT-DOOR ACTIVITIES :

Need to be seen…everywhere!!’
• Events at corporate campus
• Promotional material at channel partner outlets
• Billboards
• Signages
• Kiosks in residential and commercial complexes

4) OTHER INITIATIVES :

• In-film promotions – Baghban
• Co-Branding Initiatives
– Alliance with Amway India for launch of the international
credit card. The card will enable Amway distributors to
purchase Amway products and earn and redeem reward points
– Indian Railways Catering And Tourism Development
Corporation, in conjunction with ICICI Bank, announced the
launch of mobile payments and ticketing system, offering

IRCTC customers to book railway tickets via SMS and make
payments through their ICICI Bank account.

• Cross brand associations - acquiring databases of high net worth
clientele of lifestyle products : Tie-up with ‘Woven Hues’
• Young Stars Account – Promotion through tie-up with Cartoon
Network, and in-series promotion through Tom & Jerry

• Seminars in partnership with media channels

Products and Services – HDFC Bank

ICICI Bank offers wide variety of Deposit Products to suit customer
requirements. Coupled with convenience of networked branches/ over 1800
ATMs and facility of E-channels like Internet and Mobile Banking, ICICI
Bank brings banking at the doorstep.

SAVINGS ACCOUNT

ICICI Bank offers customers a power packed Savings Account with a host
of convenient features and banking channels to transact through. So now
customers can bank at their convenience, without the stress of waiting in
queues. ICICI Bank provides its customers with various types of savings
accounts keeping in mind different needs of different people.

• Normal Savings Account
• Special Savings Account
• Senior Citizen Accounts
• Young Stars Accounts
• Women Accounts

Normal Savings Account:

The Normal savings Account that ICICI offers has the following salient
features

1. Anywhere Banking: Opening an account with ICICI is not exclusive

to the branch the customer has walked into, customer enjoy the power
of banking at any of the branches throughout India. Customers have
the power to withdraw cash up to Rs. 50,000 and make cash deposits
up to Rs. 50,000 as well.

2. Internet Banking: This is a value added service that the customers are

offered free of cost it allows them to check their account balance, pay
utility bills, make fund transfers between self accounts as well as third
party at the click of the mouse.

3. Ncash debit cum ATM card: It is an international 2-in-1 card that

enables customers not only to withdraw cash from ICICI but also
from a non ICICI VISA ATM’s further it allows customers to shop at
various merchant outlets accredited to VISA across the globe.

4. Minimum Balance: Customers need not maintain a daily minimum

balance in their account. On a given day balance in the account may
drop to zero, this allows customers all their funds at their disposal.
Customers need to maintain an average balance of Rs.5,000 per
quarter. Non-maintenance of the minimum average quarterly balance
attracts a fee of Rs.750 per quarter.

Special Savings Account:

The Special Savings Account has been designed keeping in mind the
specific needs of organizations such as Trusts, Associations, Societies,

Councils, Clubs etc. It provides organizations solutions with added
value and is ideal for tax exempted entities.

The Special Savings Account has the following salient features

1. Multi-City Cheque Book: This facility allows its customers to skip

the traditional way of transferring funds to other cities through a
demand draft. The Special Savings Account holder are issued two
separate chequebooks for local and outstation use, thereby not only
saving on time but also saving on draft commission. The cheques
are payable at par at designated ICICI Bank branches across the
country. There will be no limit to the value of cheque issued on a
single day at RBI clearing centers. For all other centers a cap of
Rs.10, 00,000 on a single day apply. All chequrebooks are
personalized.

2. Quantum Optima Facility: Quantum Optima facility combines the

liquidity of a saving account and high returns of Fixed Deposit. All
balances in the saving account above Rs.25,000 are transferred to a
fixed deposit in multiples of Rs.5,000 for a time period of one
year. The funds however continue to be accessible around the
clock through ATM, and also through cheques. Whenever the
saving account balance falls below the specified limit, sufficient
amount is transferred back from the fixed deposit by breaking in
units of Rs.1,000 on last in first out basis, the terms of the fixed
deposit can be specified. This facility is available to those

employees who do not use the overdraft facility. However one the
overdraft is regularized this facility can be resumed.

3. Others:

- Internet Banking .

-Free Anywhere banking .

-Free collection of outstation cheques.

-Free monthly account statements.

-Payroll processing for employees of the organization through ICICI
Bank Salary Accounts.

-Inward remittance through Money2India for approved trusts.

Senior Citizen Account:

The Senior Citizen Account has a few services that the Normal Savings
Account does not offer. The salient feature of the Senior Citizen Account
are

• Higher Interest Rates.
• Demand Loan / overdraft against deposits will be upto 90% of the
deposit.
• The upcountry cheque collection facility for locations with ICICI
Bank presence free of charge to the Senior Citizen customers.
• The ICICI Bank Ncash debit card is a debit-cum-ATM card providing
you with the convenience of acceptance at merchant establishments
and cash withdrawals at ATMs.
• Auto Invest Account
• Internet Banking is offered free of cost.
• Anywhere Banking - This facility entitles the account holder to
withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI
Bank branches.
• You can give us various types of standing instructions like
transferring to fixed deposit accounts at regular intervals.
• An average quarterly balance of Rs 5,000 only. Non-maintenance of
the minimum average quarterly balance attracts a fee of Rs 750 per
quarter.
• Nomination facility is available.
• Interest is payable half-yearly.

Young Stars Account:

Young Stars is a banking service for children, aged 1day -18 years, brought
to you by ICICI Bank to help the parents meet the present and future
aspirations that they hold for their child. It offers various savings and

investment options to the parent along with teaching the child to manage
his/her personal finance in a more responsible and independent manner.

Young Stars will guide your child through the world of banking -through
checking the account balance, fun zones and special pages on the internet. It
makes banking a pleasure and of course teaches your child to manage their
personal finances.With the pocket money that you transfer to your child's
account, you can even shop with him / her at Young Stars very own
shopping page.

You can even open a recurring deposit in your child's name.

Once you are done with your 'banking', you can access your child's account
with all the fun links to special zones designed to suit your child's area of
interests and also impart knowledge on the current events of the world.

Salient features:

1. Option of a Savings Bank account, Fixed Deposit account or
Recurring Deposit account.

2. Minimum balance at Rs. 500/- per quarter for Savings Bank.

3. A special Recurring Deposit account with additional features as
below:

i The parent would put forward the desired amount to be earned
at the end of the tenure

ii Based on the prevailing rate of interest, the bank staff would then
back calculate the installments to be deposited now till maturity.

4. Free personalized chequebook

5. Free Domestic Debit Card* for the child above the age of 10 years
with features as below:

a Daily withdrawals limits of Rs. 1,000/-

b Daily spend limits of Rs. 1,000/-

c Special privileges across select alliance partners outlets.

6. Facility to invest in GOI Relief Bonds and Mutual Funds, as GOI
Relief Bonds have been discontinued.

7. Free Internet banking.

a Separate user ids and passwords for both parents and children

b Access to special zones and links to related websites for making
internet banking a memorable experience.

8. Facility to transfer funds from parent account to kid account to enable
parents to inculcate savings habit amongst children.

9. Facility of transferring funds from the Young Stars accounts to the
RD to enable the parents to let their child earn more.

10. Alliances with various partners to meet the child's needs in varied
interest areas such as clothing, computers, books, music, toys etc.

* Available for children above the age of 10 years only.

Women’s Account:

The features of the account have been specially designed keeping in mind a
woman's financial requirements. These include

A) Recurring Deposits

B) Financial planning of children

C) Family Shield Insurance

In addition to these, all features of the existing bank account are available
with this account as well such as

•Free international debit card

•Internet Banking

•Phone Banking

•ATM's

Recurring deposit

• A small amount of money saved every month can grow to a large
amount over a period of time

•No Tax deducted at source

•Can be used for your future expenses like your child's education, marriage,
festivals, or just to buy that gold necklace you always wanted, by keeping
aside a small fixed amount every month

Family shield insurance

•Ensures the security of your family through a personal accident insurance
policy

•For an yearly premium amount of Rs.60/-, your child/family can be insured
for an amount of Rs. 2 lac (in case of surface accidents) or Rs.4 lac (in case
of air accidents).

Financial Planning for Children

A "Young star" account - special account for kids to promote the savings
habit in them can be opened for just for a minimum balance of Rs.500 per
quarter. The account has the following features

•Free differentiated debit card for them

•Free differentiated cheque book

•Free internet banking

•Facility to transfer funds from parent account to kid account to enable
parents inculcate savings habit in children

Current Accounts:

Every business requires efficient banking facilities to support its business
activities. ICICI Bank offers premium quality service, unfolding a wide
array of class products. With technology leadership and service the bank is
able to meet some of the most challenging financial needs of clients.

A Current Account is one that is required by Businessman, Joint stock
companies, Institutions, Public authorities, public corporations
etc. Any business that has numerous banking tranactions need a
current account as it

• Allows running account supporting unlimited withdrawals and
deposits.
• Is meant for convenience and not to save money.

Benefits of current account

• Unlimited Withdrawal and Deposit
• Unlimited Cheque book
• Demand Drafts and Payorders
• Funds Transfer ( Local or Anywhere)
• Collection of Cheques/ Drafts
• Statements,Advices, Daily statement by e-mail
• Cash withdrawal and Deposits
• Call center
• Internet Banking

Added features of Current Account

• Multicity Cheque payment facility at over 155 centers
• Anywhere Banking facility
• Doorstep Banking - Pick up and delivery of Currency /
Cheque
• Mobile Banking

Made 2 order Current Account:

Made2order current account, unlike the normal current
account which is based on the quarterly balance, allows the

customer to have customized current account based on the
business requirement. The made2order current account is
totally flexible and can be adapted to changing business
requirement, without having the requirement to Current
Accounts have specific requirement of Quarterly Average
Balance (QAB) maintenance and inturn offer various facilities
free of cost to the customer based on the QAB.

A personalized schedule of charges is derived for each
customer based on:

• Service Required

• QAB as agreed to be maintained in the account

• Float expected in the account

The made2order customers based on the services required
maintain the required QAB or pay scaleable volume driven
fees for the services utilised.

Some of the other facilities offered under made2order current
account are as mentioned below

• Multi City Cheque Facility

• Anywhere Banking Facility

• Upcountry Cheque Collection

• Pay Orders and Demand Drafts

• Corporate Care Service

• Doorstep Banking Facility

• Internet Banking Facility

• Debit/ ATM Card

• Mobile Banking

• More Useful Facilities

You can be in touch with your Solution Manager for
structuring your current account.

Escrow Account:

An Escrow Account refers to assets or revenue streams held in
safe custody as safety against a contingent situation of non-
fulfillment of a contract. In simpler words we may say that an
escrow a/c is a third party arrangement to ensure performance of
certain obligations between certain parties and operated in terms
of an underlying agreement. The account will be a current a/c
without cheque drawing facility or a Fixed Deposit account, as
defined in the terms of the agreement.

Escrow a/c's are typically used for lending arrangements, project
financing, Securitisations, M&A's, Buy-back of shares, take-
overs, custody, litigations, purchase & sale of land, Source code
(used in software) custody, etc. The following reasons enumerate
why Escrow accounts are opened:

• Provides greater security & comfort
• Trapping of identified cash flows
• Regulatory requirements
• Custody of cash / documents
• Ease of monitoring

The funds in the Escrow a/c are held for the benefit of the
Beneficiary of the a/c rather than person / company in whose
name the a/c is opened. For e.g.. in a borrower lender
arrangement, the a/c name is "Borrower - Escrow a/c" and the
funds deposited are that of the borrower but the funds are held in
the escrow a/c for the benefit of the Lender .

Roaming Current Account

Only Roaming Current Account from ICICI Bank travels the distance with
customers business. With advanced technological features such as MCC and
LCC, banking needs are well taken care of, customers can access their
accounts at over 500 networked branches across the country.
So while customers take care of their business, ICICI Bank’s Roaming
Current Account simplifies banking for them.

Product Features :-

• Choose your account
• Multi City Cheque Facility
• Anywhere Banking acility
• Upcountry Cheque Collection
• Pay Orders and Demand Drafts
• Phone Banking Facility*
• Doorstep Banking Facility
• Internet Banking Facility
• Debit/ ATM Card
• Mobile Banking

Real Time Gross Settlement (RTGS) system:

• RTGS is a payment system in which both processing and
final settlement of funds transfer instructions take place
continuously in real time.
• It is a gross settlement system where transfers are settled
individually, that is, without netting debits against credits.

As it is a real-time settlement system, the system effects final
settlement continuously rather than periodically at pre-specified
times provided that a sending bank has sufficient covering
balances or credit.

RTGS system can be characterized as a funds transfer system that
is able to provide continuous intra-day finality for individual
transfers. In this system payment instructions between banks are
processed and settled individually and continuously throughout
the day. This is in contrast to net settlements where payment
instructions are processed throughout the day but inter-bank
settlement takes place only afterwards typically at the end of the
day.

In RTGS system, payee banks and their customers receive funds
with certainty, or so-called finality, during the day, enabling
them to use the funds immediately without exposing themselves
to risk.

STRATEGIC ALLIANCES ENTERED BY KOTAK MAHINDRA
BANK

NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking Technology
(IDRBT), a group established by the Reserve Bank of India (RBI) in 1996,
has planned to set up a national switch to hook up all of the country's
10,000-odd ATMs.
The idea of establishing ATM interconnectivity through a national switch
has been approved by the information chiefs of various Banks.
The expected cost of transactions routed through the switch is to be under 10
rupees (21 cents U.S.) each, due to the high volumes of transactions --
almost 100,000 per day.

CASH NET

It is an Alliance between Citibank, Industrial Development Bank of India,
Kotak Mahindra Bank and UTI Bank. This is the country's first independent
shared ATM network.
IDBI Bank received permission from the Reserve Bank (RBI) to serve as the
network's settlement bank.

Cash net will give access to more than 1,300 ATMs for more than 6 million
debit cardholders of the member banks. The Alliance would constitute about
a third of the total card base and 15 percent of the ATM base in the country.

Kotak Mahindra Bank and REDIFF.com

REDIFF.com India and Kotak Mahindra Bank have entered into an alliance
to provide online and offline banking and related services to the Indian
consumer.
The alliance will enable information on the entire range of the banks
consumer banking products to be made available to the 6.4 million online
customers of Rediff.com.
The services offered include detailed information on various deposits, loans
and mortgages, credit cards, mutual funds and insurance products of the
bank. Users will be able to directly interact with the bank and request for
products online

Survey Conducted on 50 Respondants

♣ DURATION WITH BANK

DURATION WITH BANK

Less than 6
Over 2 years months
6 months to 1
17% 3%
year
30%

1 to 2 years
50%

The study of 50 Kotak Mahindra Bank respondents consisted of a majority
of customers who had been with the Bank for a reasonable amount of time.
This is good as these customers have had the opportunity to properly access
the service level of the Bank, and can compare their experiences of Kotak
Mahindra Bank with banks they have previously and are currently dealing
with.
Out of the total respondents only 3% have been with the Bank for less
than 6 months, the rest 97% have had the opportunity to know about
the strengths and weaknesses of the Bank.
Another inference that we can draw from this study is that couple of years
the Bank has been actively acquiring new customers as from the survey we
can see that about 80% of the customers have opened their accounts during

the past two years. The reason for this could be that during the past two
years the Bank has been able to convince many prospective customers about
the superior service it is able to offer in comparison to competing Banks.
Another reason could be that the customer base of the Bank has increased
due to sheer word of mouth of the Banks millions of satisfied customers.

♣ REASON FOR CHOOSING BANK

REASON FOR CHOOSING BANK

Recommended by
Family/Friend
Brand Name/Reputation
34% of bank
44%
Advertisement

Branch near
0%6%
16% Office/Residence
Other Reasons

If the Bank could get to know of that very compelling factor that convinced
the customer to open the account then the Bank could use this in its favor to
attract more customers.
From the study conducted the factor which has come out strongest in this
regards is the “Other Reasons” getting 44% of the responses, going deeper
into this response by asking the respondent what is the factor they include in
this Other Reasons is that most people are not the deciding factor when they

open a saving account, this is done so by their employers. The customer’s
salary accounts are created by the companies in which they work.

MOST FREQUENT POINT OF INTERACTION
WITH THE BANK

MOST FREQUENT POINT OF INTERACTION

30 26
25
20 16
15
10 6
5 2
0 0
0
Visit Branch ATM Phone Drop Box Internet Door Step
Banking Banking

The Banks are very interested to know the most popular Point of
Interaction with the Bank as if the Bank is lacking in one of these steps can
be taken to make the situation better.
From the study we can see more than half (more than 50%) of the total
respondents feel that they interact most with the Bank with the help of ATM.
Hence the importance of ATM cannot be overstated.
The Second most popular point of interaction that arises from the study is
the Branch with 32% of the respondents favoring this option. Kotak
Mahindra Bank is unique in an aspect that it follows the “Any Branch
Banking” wherein the Account holder can use any of the Banks 156
Branches all over the country.

An aspect that customers really appreciate is the 24 hour Branches and the
365 Days Branches of Kotak Mahindra Bank. The 24 Hour Branch of
Kotak Mahindra Bank is located at sector 18 noida apart from these
Branches in Mumbai and other cities in India.
Kotak Mahindra Bank is the only Bank which has the facility of a 24 Hour
Branch. As for a 365 Day Branch the only Bank having this facility apart
from Kotak Mahindra is UTIBank.
The third most Frequent Point of Interaction is Phone Banking with 11.5%
of the respondents favoring this medium. Phone Banking is one of the new
age Banking techniques. It is in it’s infancy in India and people have not
taken to it as is the case in other Developed Countries in the World.
In the study it was seen that customers have mixed feeling when it comes to
Phone Banking as sometimes they do not find it as an effective alternate to
traditional forms of Banking.

The forth most Frequent Point of Interaction with the Bank is Internet
Banking with 4% of the respondents favoring this medium. Internet
Banking is the most modern means of Banking available to the customers
but due to the general perception that this medium is not safe it is not used
by many people.
In our study only 60% of the total respondents have at least once used
Internet Banking.

The two options which were not favored by any respondents as the most
Frequent Point of Interaction are Drop Box Facility and Door Step
Banking
.
OVERALL SATISFACTION LEVEL

OVERALL SATISFACTION LEVEL

30 26
25
20
14
15
10
10
5
0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

Any service provider would want their customers to have a high Overall
Satisfaction level. Kotak Mahindra Bank has scored very well in this regard.

The most important thing is that no respondent has complained that they
are overall dissatisfied with the bank. This is a very important finding
because this shows the effort Kotak Bank puts in providing their customers a
superior service has not gone waste.
More than half of the total respondents (52%) say that they are somewhat
satisfied with the overall service of the Bank. About 30% of the total

respondents say that they are Very Satisfied with their Overall
Experience with the Bank.
Hence about 82% of the Respondents are Satisfied with their Overall
Experience with the Bank.
The study is showing a very good Overall Satisfaction Level by the
Account holders

SATISFACTION LEVEL WITH BANK STAFF

SATISFACTION LEVEL WITH BANK STAFF
(Courtesy,Qualified)

25 23

20
15
15
10
10
5 2
0
0
Dissatisfied

Banks are institutions which are backed up by a large amount of capital;
today’s Banks are spending a huge amount of money on technology,
improvement in infrastructure, etc. But even today the most lasting impact
about any Bank comes from the customers experience with the Bank Staff.
Any paining experience can have a lasting impact on the mind of the
customer, this can force him to change Banks or even discourage others
from joining the Bank. Hence Banks should train their employees to
maintain good relations and be cooperative with the customers.

From the results of the findings we can see that Kotak Mahindra Bank has
been successful in marinating a high level of customer satisfaction with the
employees. Only 4% of the total respondents included in the study were
dissatisfied.

The number of respondents who were Very Satisfied represented 30% of
the total respondents while those who were Somewhat Satisfied were 46%
of the total. The respondents who were Neither Satisfied nor Dissatisfied
are 20% of the total.

SATISFACTION LEVEL WITH BANKING HOURS (10 am to 7 pm)

SATISFACTION LEVEL WITH BANKING HOURS
(10 am to 7 pm)

25 22
20
14
15
10
10
4
5
0
0
Dissatisfied

From the analysis of the data that has been collected from Kotak Mahindra
Bank Account holders we can see that majority of the respondents are
satisfied with the Average Banking Hours.

The respondents who are Somewhat Satisfied with the Banking Hours
consist of 44% of the total, while 28% of the total respondents studied say
that they are Very Satisfied. In all 72% of the total respondents are satisfied
with the Banking Hours of Kotak Mahindra Bank.
The respondents who are neither Satisfied nor Dissatisfied consist of 20% of
total number studied, while 8% of the respondents are somewhat
dissatisfied.

MOST IMPORTANT QUALITY IN A BANK

MOST IMPORTANTANT QUALITY IN A BANK

ATMDécor of Bank
12% 0%

Courteous Staff
26% Efficient service
62%

From the survey of more than hundred respondents belonging to different
Banks we can to the conclusion that Efficient Service offered by Banks is
considered most important by account holders , 62% of the respondents
felt that the Bank should concentrate more on this service aspect.

The next aspect which is considered highly important by the Account
holders of various Banks is the Staff of the Bank. It is true that today’s
Banking far less of Branch Banking as it was the case a few years ago ,
today Account holders have a constant interaction with non-human interface
like ATM machines , Internet Banking , Drop Box , Even phone Banking
when customers do not interact in a face to face manner with the Bank
employees.
But in the minds of the respondents it is very important that the Staff the
Bank employs should be cooperative, courteous and qualified to solve the
various problems of the Account holders. The percentage of respondents
favoring Staff quality as most important was 26% of the entire sample size.

The most frequent point of interaction with the Bank is ATM facility, the
Account holders whether in Private/Foreign sector or the Government sector
have been provided with ATM facility by their respective Banks. To judge
the performance level of any Bank today it is crucial that the ATM service
of the Bank be studied, this includes not only the number of ATM machines
installed by the Bank , but also how technologically advanced the machines
are (number of transaction that can be done with the ATM Facility), the
effort Bank undertakes to maintain the machines and also the overall
experience of the Account holder with the service.
The percentage of respondent considering the ATM service as most
important were 12% of the total sample size.

But from the respondents who were questioned none of them said that the
Décor/Ambience of the Bank Branch was most important. On further
Questioning it was revealed that they did want well-maintained

Branches/Other Bank Interaction points but this was not the most important
aspect.

PRIVATE BANKS PROVIDE SUPERIOR SERVICES COMPARED TO
GOVERNMENT BANKS?

PRIVATE BANKS PROVIDE SUPERIOR
SERVICES AS COMPARED TO GOVERNMENT
BANKS ?

No
21%

Yes
79%

The general perception is that the service quality of Private Banks is superior
to that offered by Government sector Banks; we wanted to study whether
this is a true phenomenon or whether this was just hearsay.
The most important findings would come from the group of respondents
who hold Saving Accounts with both Private and Government run Banks, as
these people would be in the best position to judge the service offered by the
Banks.

According to this group of respondents the Range of Products that are
offered by Private sector Banks are much more diverse than those offered by
Government Banks.
Also these respondents felt that the Banks in the Private sector were much
more flexible than their Government counterparts when dealing with
customers were concerned.

Private sector Banks are much more proactive when it comes to offering it’s
customers new-age methods of Banking like ATM Facility , Internet
Banking , Phone Banking, These services make the life of Account holders
much easier.

Another major difference that comes to most of the respondents minds when
comparing the Private and Government sector Banks is the Staff Attitude
towards the customers. Sure Private sector Bank Account holders have had
problems dealing with Bank Staff, but they still feel it is much better than
how Government employees behave. These Government employees show as
if they are doing a favoring on the customer when they do their job.
Private sector Bank customers are offered many freebies and incentives to
remain with the Bank, or try new products of the Bank. This is never the
case with Government Banks.

Overall the result of this question very clearly states that people consider
the service level of Private Banks much higher than Government Banks
as 79% of the respondents agree and only 21% of the respondents
disagree.

Chapter-5
CONCLUSION

1. Kotak Mahindra Bank is Leading Bank in the country, it provides a
variety of products and services to different segments of customers.

2. The Bank aims to serve customers from teenagers to senior citizens,
hence different products designed to suit specific requirements of the
above.

3. Aims to serve all classes of the society from the salaried middle class
to the high income business class.
Customers are categorized and segmented according to their
requirements and needs.
For Example, the EDGE Saving Account aims to serve middle class
customers so minimum balance required to be maintained is Rs. 10000.
While the PRO and ACE Saving Accounts are targeted at high income
customers, the minimum balance requirement is Rs. 20000 and Rs.
75000.

4. Customers who are more profitable to the Bank (High Value
Customers) are provided special facilities. Priority Banking is meant to
serve these high value customers.

5. The Bank prides itself with the ability to provide differentiate
products in the crowed market of saving accounts. Bank offers the free

home baking, special co-branded debit cards (Smart fill Debit Card)
which makes its product unique.

6. The Bank is also involved in marketing activities which serves as a
medium of advertisement for the Bank. These are as follows:

• Extended happy hours at certain pubs in Delhi for the Bank’s account
holders.

• Gift Vouchers on making utility payments, such as cell phones,
electricity and MTNL bills.

• Free Gifts like caps, pens/wollets to its customers.

• Free add-on cards for relatives.

7. The Bank wants it’s customers to transact more through Internet
Banking and ATM, Rather than the customers using the branch.

8. The Debit Cards provided by the Bank are Internationally Accepted
around the world, hence giving the customers the convenience to
transact anytime, anywhere.

9. The Bank has tied up with other Banks so that it’s customers can use
other Bank’s ATM facility for free transactions

10. The Bank also provides DEMAT account and also sells Mutual Funds,
this provides the Bank and Government additional revenue.

11. The Bank has been very successful in enlarging its customer base
during the last couple of years.

12. The Number One Reason of people choosing Kotak Mahindra Bank is
the Brand Name/Reputation of the Bank. Hence it should be careful that
the Brand name and Goodwill the Bank has earned is not diluted.

13. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank
and STANDRAD CHARTERED.

14. ATM Facility is most popular way to transact with the Bank.

15. Overall the customers appreciate the service and products offered by the
Bank and are willing to recommend the Bank to their acquaintances ,
But more attention has to paid towards:

• Increasing the number of ATM machines.

• Improving Internet Banking Facility.

GENERAL FINDINGS

1. ATM Facility is more widely used by customers belonging to
Private/Foreign Banks as compared to Government Banks.

2. Customers value Efficient Service over every other aspect, this is far
more important than the number of ATM machines, Staff, Décor of
Bank.

3. Reputation of Bank is most important when it comes to choosing
especially a Private Bank.

4. The general perception is that Private Banks provides better services as
compared to a Government Bank.

5. People realize that Private Banks are as safe as compared to Government
Banks.

6. Advertisements and Freebies can be used to attract more customers.

QUESTIONNAIRE

NAME ___________________________________________

ADDRESS ________________________________________

AGE
Below 25 years 25 to 40 40 to 55 Above 55 years
OCCUPATION
Business Professional Service Student Others
ANNUAL INCOME
Less than 1.5 Lakh 1.5 Lakh to 3 Lakh 3 Lakh to 4.5 Lakh
above 5 Lakh

1. Do you hold a saving account?

Yes No

2. If yes in which banks.

3. Out of the above accounts which do you use most frequently
_________________________

4. Apart from saving in a bank account where do you invest your
money?

Land/Property

Capital markets (shares, mutual funds, etc)

Jewellery

Others (please specify)

5. Do you get an ATM/debit card facility from your bank?

Yes No
6. How many times a week does you use your ATM/Debit Card?

Less than 2 time a week
2 to 4 times a week
More than 4 time a week

7. What is your most frequent point of interaction with the bank?

Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking

8.Do you believe that Private/Foreign banks provide superior services
than nationalized banks?

Yes No

9. Do you agree with the view that your money would be safer in a
nationalized bank rather than a foreign bank?

• Strongly Agree
• Agree
• Neither Agree nor Disagree
• Disagree
• Strongly Disagree

10. Are you influenced by advertisements in your choice of bank?

Yes No

11. Do additional schemes/benefits (free insurance, free debit card,
privileges/discounts on use of debit card, etc.) offered by banks have a
bearing on your decision when you open a saving bank account?

Yes No

BIBLIOGRAPHY

There was immense need and flow of the information while conducting the
analysis as well as while writing the thesis report, which was gathered
through various sources mentioned below:

♣ Various Magazines and Newspapers such as
Outlook
Financial Times
The Economic Times
The Times of India
The Hindustan Times
♣ Other References
Questionnaires, Journals, Broachers and various other documents gathered
and collected from bank and various other sources such as ATM centers and
associates.
♣ Internet
www. Kotak Mahindra Bank. com
www. Kotak Mahindra Bank.co.in
www.google.com
www.economictimes.com

SYNOPSIS

The central bank of India is the Reserve Bank: most large commercial banks
were nationalized in 1969, with more being nationalized in 1980. The
Department of Banking at the Ministry of Finance controls all banking. The
State Bank of India, the largest commercial bank, handles some of the
Reserve Bank’s roles. Cooperatives and credit societies are an important
supplement to the private banking industry, especially in rural areas.

The Entry of Foreign Banks in the Early 1990’s has brought about a
Revolution in the Banking industry. The superior service levels of these
Banks have forced even the Nationalized Banks to wake up to the reality that
if they do not live up to the customer’s expectation they will soon cease to
exist.

Indian Banking Industry today is in the midst of an IT revolution. A
combination of regulatory and competitive reasons has led to increasing
importance of total banking automation in the Indian Banking Industry.

Earlier profitability gained only secondary importance, since banks lived in
the comfort of a controlled environment. However, today banks cannot
survive only with the Government support. They have to set
goals of profitability along with service and set targets and evolve strategies
to reach them.

There is certainly a paradigm shift in banking in India in the recent past. At
present profitability, capital restructuring and transparency is considered
important and significant for banks. Also, banks in India have started
realizing the need to be ‘customer focused’ that in turn leads to ‘customer
appreciation’, which is imperative for survival and growth.

The first change along this line was brought in by the foreign banks with
their emphasis on high quality and efficient service combined with
technological advantages like satellite banking and tele-banking manned by
skeletal staff and lesser number of branches.

Further, development of special manpower, innovative products, technology
exploitation and personalized services play a crucial role on the banking
industry today, since the customer has more options in choosing bank. Thus
leading to consumerism in the banking sector. Also, since customers are
becoming more sophisticated and educated, their expectation from the
neighborhood bank is increasing.
To sum, the new private sector banks are poised to redefine banking sector
in India. Though they don’t pose a threat to the existing private banks they
will certainly force them to gear up their strategies to remain in the field.

The last few years have seen a sea change in banking strategies, with more
focus on quality. The adoption of a specialized customer-oriented focus is
fast getting wider acceptability. In a market that keeps growing in depth and
diversity, niche banking is new mantra adopted by all. Thus, instead of

targeting an entire market segment, banks have adopted a specific business
focus to reach their target audience.

Over the last few years, the communication style too has changed with
respect to the banking industry. Communication has shifted from branding
the bank to branding banking products, highlighting service commitments,
convenience, etc. Further, branding of banking products such as home
loans, consumer durable loans, tele banking, ATMs, net banking etc

have started taking place, especially after the entry of foreign banks and
private sector banks which had the advantage of the latest technology.
-

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