A Project Report On Comparative Analysis of Private Sector Bank on Basis of Current Account, Saving Account & Fixed Deposit

CONTENTS
1 CHAPTER-1 . INTRODUCTION Scope of the study Research Objectives & Hypothesis 2 CHAPTER-2 . ORGANIZATION PROFILE A Brief profile of the industry Detailed profile of the Company 3 CHAPTER-3 . METHODOLOGY Research design Sampling Method and tool of data collection Data analysis and Hypothesis Testing 4 CHAPTER-4 . CHAPTER-5 5 . 6. CHAPTER-6 ANALYSIS OF DATA INTERPRETATIONS & FINDINGS BIBLIOGRAPHY & ANNEXURES

CHAPTER-І INTRODUCTIO N

Introduction
Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive players capable of meeting the multifarious requirements of the large

customer’s base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered around the customer – understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by ‘high value’ domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. A strategy that has allowed these banks to

concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas, this statutory requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks.

Scope of the study
As current market place is highly competitive and each corporate is expanding its business round the globe for its global presence so they do study related to market trend regarding to their market share in comparison to their competitors. This study is carried out to find out the market share of Kotak Mahindra Bank and also compare it with different Private sector banks. For this analysis of the sales trend of Financial product ,ie Saving a\c , Current a\c & Fixed Deposits has completed in Lucknow city. This study is confined to some of the areas like Hazratganj, Gomti Nagar, Indira nagar, Rajajipuram, Chowk, Latoche Road, Haider Ganj and Aminabad etc of Lucknow city.

Significance of the study
This study is helpful to find out the strengths and the weakness of their deposits and mobilization schemes of bank and how to overcome its weakness. This study provides useful inputs to find out the current position of Kotak Mahindra Bank in comparison to its competitors.

Objectives of Study
The objectives of undergoing study are as follows;
1. 2.

Study and analyze the market share of financial products of different banks. Possible improvements to be brought in for the development of their future business.

Hypothesis of Study
For these objectives some of the hypothesizes have been framed which are given below; Hypothesis 1; H0: There is significant relation between customer preference and bank’s financial products. H1: There is no significant relation between customer preference and bank’s financial products.

Hypothesis 2; H0: There is significant relation between bank’s financial products and business development. H1: There is no significant relation between bank’s financial products and business development.

Literature Review
There has been significant growth in both private bank and public sector banks in past 10 years. The main function of commercial banks is to mobilize deposit from the public for the purpose of deploying them profitably by way of advances and investment. The Deposits are therefore their raw material which they collect from public through various deposit mobilization schemes and lend the same to individuals, business enterprises and bodies corporate through their various lending and investment schemes/products. The difference between the cost of deposits and the earnings on advances and investments determines their profit margins and profitability of banks. Bank deposits: The bank deposits are generally classified as • Demand deposits • Savings deposit • Term deposits Demand deposits: demand deposits are mainly current account wherein the account holder can deposit and withdraw any amount at any time without restricting the number of transactions on any day /time.

Current account: In this type of account person can deposit there money any time and can withdrew it anytime. In this kind of account no Interest is paid. Moreover some banks charge /take service charges for providing the facility. This type of account is mostly opened by the Business community. Saving account: In this type of account account holder can deposit its money any time but cannot withdrew the same as in current account, he cannot withdrew before certain period of time. In these type of account rate of Interest is nominal generally 4 percent moreover the rate of interest given for the deposit of the account holder is calculated on the minimum balance the account holder had in his account from 12th to last day of the particular month but rate is low when compared to rate of Interest in Term deposit. Term deposit: In this type of account person deposit it money for certain period of time say for a year and he generally cannot withdraw it before completion of that period. If the current account or saving account for a bank is less then it means its cost of deposit is more whereas those banks who maintain a balance in all these three accounts (i.e. current account , saving account , time deposit) it means that they balance to maintain a good profitability and minimum cost of borrowing Earlier the rate of interest on deposits was regulated but now they are not. There has been a proper balance between demand deposit (i.e. current and saving deposit) and time deposit and thus for this purpose banks prepare ALPM i.e. assets liability planning and management..

Scheme of Dissertation This study has been carried out to find out “COMPARATIVE STUDY OF PRIVATE SECTOR BANKS REGARDING CURRENT A\C , SAVING A\C & FIXED DEPOSIT”. For this market research of some areas of Lucknow has been completed. The scheme comprises of finding out the market share/sales trend of different financial products of Kotak Mahindra Bank n in comparison to some other Private Bank like ICICI , HDFC . Sample size of 100 is taken . For the objectives of this whole study hypothesis have been designed for testing with the use of statistical tools like Chi-square and software like SPSS. The layout of the dissertation is as follows; Introduction: Introduction gives a brief idea about Banking industry, scope of study, significance of study, objectives, hypothesis and literature review part related to Banks and there Financial Products . Organization Profile: This part comprises of industry profile and company profile. This part give a brief idea about current trends in industry and company. Research methodology: This part give an idea about research design, sample size/design and method of data collection. Analysis and Interpretations: This part tells about data analysis, method carried out for data analysis and interpretations from the analysis part. Discussions and Recommendations: This part gives an idea about some inputs to explore some other parts of research for further studies and tells about which part is necessary for more focussed research. Bibliography and Annexure: This part comprises of references taken for this study and questionnaire which was framed for this study.

CHAPTER-ІІ ORGANIZATIO N PROFILE

Industry Profile
BANKING SECTOR IN INDIA Introduction The liberalization brought in 1991 has swept the economic landscape of the country. The automobile industry is one of the invisible faces of liberalization .For the people who were used to many years of Ambassador cars with various models not different in anyway except a few changes in every model, the arrival of Maruti heralded the beginning of a new experience in automobile comfort. It was the same with Bajaj Chetak. Its obnoxious horn and the tilt and start symbolized the deplorable technology to which an Indian consumer was treated. We are thus living in the era of change. Banking sector is no different. The changes in banking in the last decade are unparalleled when compared to the entire period of banking history in India. Profitability, which remained a taboo for bankers for years since independence, has become a buzzword today. Our banks modeled on British banks, which erected awesome building to scare the public in the garb of being a sentinel of public money, today go for boutique banking to be as close to public as possible. Thus, competition fuelled by technology drives banking today. It is becoming increasingly clear that ' Technology ' alone can make bankers sail through the competition. Computerization of branches, introduction of cash management products, remote access login for corporates, Banking Company is defined as “a company, which transacts the business of banking in India. The Banking Regulation Act defines the business of banking by stating the essential functions of a banker .It also states the various other businesses a banking company may be engaged in and prohibits certain businesses to be performed by it.”mobile banking, Internet banking and ATM banking are a few ways by which bankers use technology today to beat the competition.

BANKING SYSTEM IN INDIA Apex Banking Institutions

Reserve Bank Of India

Industrial Development Bank
Banking Institutions

Agricultural Refinance & Development Corporation

ExportImport Bank of India

Regional Rural Banks Foreign Commercial Banks

Commercial Banks

Co-operative Banks

Industrial Land Development Development Banks Banks

State Co-operative Banks Indian Commercial Banks Central/District Co-operative Bank Public Sector Banks Private Sector Banks Primary Credit Societies State Land Development Banks Primary Land Development Banks

State Bank Group

Nationalized Banks All India State Level IFCI IRC ICICI SFC s SID Cs

State Bank of India

Subsidiary Banks

SERVICES RENDERED IN INDIA

Administration of Estates. Private Trusts Personal Service

Personal Services
• •

Business Services

Ancillary services

• • • • • • • • •

Merchant Banking. Company Registration& Computer Service Leasing& Industrial Hire Purchase. Factoring Corporate Trusteeships. Business Advisory Services Offshore Services Foreign Trade

• • • • • • •

Life Insurance Unit Trusts Insurance Services Travel Services. Mail Transfer Telegraphic Transfers Bank Drafts.

Investment Services Unit Trusts Life Assurance Insurance Broking Credit Cards Hire Purchase Personal Advisory

• • • • • •

• Money & Travel (Open credit abroad, overseas payment, Telegraphic transfers, Post cheques, Traveler’s cheques.)

TYPES OF BANK

PRIVATE BANKS SCHEDULE BANKS
COMMERCIAL BANKS

BANKS
FOREIGN BANKS
INDUSTRIAL BANKS CO-OPERATIVE BANKS

5 DIMENSIONS OF SERVICES There are many reasons why a customer should be given QUALITY SERVICES. The most of them are: 1. Industry being so competitive that a customer should be given the best services as they have many competitors (the company) and if even a single customer is lost in today’s JLT world then it very difficult to win back the customer. 2. Most of the customers do not complain as they just opt out and do get satisfied with better services elsewhere. When it comes to services, there are 10 quality dimensions. Each of the dimensions is of utmost importance since human element is involved and it relates to services. But Zeithaml, Bitner and Parsuraman have developed a new and concise model by clubbing some points. This model consists of the following dimensions:
    

Reliability Assurance Tangibility Empathy Responsiveness

RELIABILITY

RESPONSIVENESS

ASSURANCE

EMPATHY
RELIABILITY

TANGIBILITY

It is defined as the ability to perform the promised service dependably and accurately. In its broadest sense, reliability means that the company delivers on its promises–promises about delivery, service provision, problem resolution, and pricing. It is also known as the “No Excuses” service delivery. Indian Overseas Bank faces stiff competition from many other banks within its vicinity and some of these banks are foreign banks. But the existing customers have faith, loyalty and trust in this bank. The customers are well aware that the bank will provide them back the best and reliable services. For e.g., no person likes to wait to withdraw his/her money. In order to correct this problem, Indian Overseas Bank has ensured that whoever comes in for cash withdrawal will receive his/her cash within five to ten minutes.

ASSURANCE
Assurance is defined as employee’s knowledge and courtesy and the ability of the firm and its employees to inspire trust and confidence. It includes the ability, knowledge, genuineness, and honesty to provide the best services to the customer from the frontline staff. In this dimension the front line staff is more important rather than the owner. At Indian Overseas Bank, every customer who comes is treated with utmost care and any problem that takes place is solved with great enthusiasm. It assures the customers coming up to the bank that the money they invest is secure; the interest rate that is being provided to them is at par or sometimes even higher as compared to other banks. Also, it assures the customers that the money they have invested will be returned to them as and when required with proper interest. It tries to empower their customer contact people and regularly train them in skills to build trust and loyalty between employees and the customers. They have assigned some of their staff members to build relationships with the customers by getting to know them personally.

TANGIBLITY
Tangibles are defined as the appearances of physical facilities, equipments, personnel and communication materials. All of these provide physical representations or images of the service that customers, particularly new customers, will use to evaluate quality. At Indian Overseas Bank, the entire premise is air-conditioned. They have computerized systems in place and therefore quick, accurate and efficient service can be provided to the customers. The tables and chairs are conveniently located for the customers. The personnel always have a cheerful and helping veneer and are always ready to help out the customers. The entire place is done up in bright colors and thus the customer can immediately feel the warmth and the radiance of the place.

EMPATHY
Empathy is defined as the caring, individualized attention the firm provides its customers. The essence of empathy is conveying, through personalized or customized service, the customers are unique and unique special. The empathy shown by the employees of the Indian Overseas Bank is good as they are always polite humble and helpful. There was a case where once a customer misplaced Rs. 1,00,000 within the premises of the bank. He panicked but the bank personnel put

him at rest and assured him that they would locate the same for him. Since he was a regular customer, they knew him very well and took the situation under control. They quickly located the cash and thus, the customer was placated. The bank personnel went out of their way to help this customer and thus understood his predicament. This bank regularly holds seminars and training workshops so that they can understand the consumer better and thus serve him better.

RESPONSIVENESS
Responsiveness is the willingness to help the customer and provide him with immediate and fast service. The Indian Overseas Bank is prompt at providing its customers with the information and services that they seek. It is extremely prompt when it comes to resolving the complaints of the customers. The customers, in their feedback form, mentioned this as one of the most important factor that has prompted them to continue with this bank. All the five dimensions basically aim at serving the customers to the best of their ability, giving them quality services and if things are followed as they are demanded, (i.e., according to the customers demand) then there would be no problems in facing any type of people. The successful service organizations set up speeds for service standards.

TRADITIONAL BANKING Traditionally the relationship between bank and its customer has been on a oneto-one level via the branch network. This was put into operation with clearing and design making responsibilities at the individual branch level. The head office had the responsibility for the overall clearing network, the size of the branch network and the training of staff in the branch network. The branch monitored the organizations performance and set the decision making parameters, but the information available to both branch and their customers was limited to one geographical location. Customer Customer

Customer

Bank Branch Clearing Decision

Bank Branch Clearing Decision

Bank Branch Clearing Decision

Central clearing

Central clearing

Traditional banking structure

RELATIONSHIP BANKING

The modern bank cannot rely on its branch network alone. Customers are now demanding new, more convenient, delivery systems. And services such as internet banking have a dual role for the customer thus increasing the productivity of this sector. They provide traditional banking service, but additionally offer much greater access to information on their account and on the banks many other services. To do this banking has to create information layers, which can be accessed both by bank staff as well as by the customers themselves. Today banking in India has become an un popular industry, much blamed for its problems of its own making. The use of interactive electronic links via the internet can go a long way in providing the customers with greater deal of information about both their financial situation and about the services offered by the bank.

Customers

Telephone, Branch, Electronic Banking, etc.

Shared Information

Clearing systems

Head Office Risk Monitoring

Company Profile COMPANY
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and 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 Mahind ra Finance Limited starts the activity of Bill Discou nting 1987 1990 1991 1992 1995 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market The Auto Finance division is started The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate company Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company The Auto Finance Business is hived off into a separate company - Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group's entry into information distribution. Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.

1996

1998

2000

Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. Matrix sold Launches Insurance Services to Friday Corporation

2001 2003 2004 2005

Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities
Journey so far

2006

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, 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. 5,609 crore, employs around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.6 million customer accounts. In February 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). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank. Recently, Kotak Mahindra Bank Ltd and HDFC Bank have signed a Memorandum of Understanding to share their ATM network. This agreement will give customers of the two banks access to over 1400 ATMs across the country. While HDFC Bank has 1335 ATMs across 228 locations in the country, Kotak Mahindra Bank has 75 ATMs at 41 locations, accessible 24 hours a day, 365 days a year. Kotak Mahindra Bank is offering access to HDFC Bank ATM network free of cost to most of its customers. The charges for HDFC Bank customer for using Kotak Mahindra's ATMs are Rs. 18 for Cash withdrawals and Rs. 7 for Query-based transactions such as balance enquiry.

Corporate Identity

Group Management
Name Uday Kotak Title Age Executive Vice 48 Chairman, Managing Director, Chairman of Nominations Committee, Chairman of Management Committee, Chairman of Committee of the Board of Directors, Chairman of Share Transfer and Routine Transaction Committee, Chairman of Credit Committee, Member of Investor Relations (Shareholders/Investors Grievance) Committee, Member of Committee on Frauds, Member of Customer Services Committee, Director of Kotak Forex Brokerage Limited, Director of Kotak Mahindra Primus Limited, Director of Kot Executive Director, 51 Member of Audit Committee, Member of Nominations Committee, Member of Management Committee, Member of Committee of the Board of

Chengalath Jayaram

Dipak Gupta

Shivaji Dam

Directors,Member of Investor Relations (Shareholders/Investors Grievance) Committee, Member of Share Transfer & Routine Transaction Committee, Member of Committee on Frauds, Member of Credit Committee, Director of Kotak Mahindra Asset Management Company Limited, Director of Kotak Mahindra Primus Limited and Director of Kotak Securities Limited Head of Retail 47 Business and Banking Operations, Executive Director, Member of First Tier Audit Committee, Member of Nominations Committee, Member of Management Committee, Member of Committee of the Board of Directors, Member of Investor Relations (Shareholders/Investors Grievance) Committee, Member of Share Transfer and Routine Transaction Committee, Member of Committee on Frauds, Member of Credit Committee, Member of Customer Services Committee, Director of Kotak Forex Brokerage Limited, Direct Director, Member of 50

Audit Committee, and Managing Director of OM Kotak Mahindra Life Insurance Company Limited

Awards
2007
• • • •

Awarded the 10th Best Employer in the recently conducted Hewitt’s Best Employers in India 2007 Study Best Investment Bank in India by Finance Asia Most Popular Investor Relation Website for the Asia/Pacific Region conducted by IR Global Rankings Emerged winner in 16 categories in the Euromoney Private Banking Poll 2007, including the Best local Private Bank

2006
• • • • • • • • •

• • • •

“IT Team of the Year” award at the annual Banking Technology Awards 2006 Runner’s up in the “Best Payments Initiative” category at the annual Banking Technology Awards 2006 Kotak Securites was ranked The Most Customer Responsive Company for 2006 (Category - Financial Services) by Avaya Globalconnect Awarded the Best Domestic Investment Bank and the Best Equity House in The Asset Triple A Country Awards Awarded Voice of Customers Award for the Best Passenger Vehicle Finance Company in India in 2006 by Frost & Sullivan Winner in 33 categories in the Asiamoney Private Banking Poll 2006 including the Best Private Bank award in Southern Asia Ranked no. 1 in six categories in the Annual Euromoney Private Banking Survey Poll for 2006 for India Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2006 according to Prime Database Best Broker in India by Finance Asia Topped the Asiamoney 2006 Brokers Poll as the Best Local Broker Adjudged the best Mutual Fund House in the NDTV Business Leadership Award 2006 Best Bond Fund Group over Three Years by Lipper Fund Awards India

• •

Ranked the best debt fund over 5 years by Lipper for the Kotak Bond Regular Plan Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for the 'Kotak Bond Regular Plan'

2005

• •

• •

Ranked as the top mergers & acquisitions advisor in India in terms of the value of mergers & acquisitions deals announced from January to December 2005, according to Bloomberg Topped the India Advisory Partners Indata League table in terms of the value of deals announced for the calendar year 2005 Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2005 according to Prime Database Best Broker in India by Finance Asia Best Equity House in India by Euromoney

2004
• •

• • • • •

Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2004 according to Prime Database Best Investment Bank in India by Global Finance India's Best Equity House in India by Finance Asia Best Equity House in India by Euromoney Best Equity House in India by Asiamoney Best India Equity House by IFR

2003
• •

Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2003, according to Prime Database Best Equity House in India by Euromoney

Products and Services

Saving Accounts 1. Edge Saving Account 2. Pro Saving Account 3. Classic Saving Account 4. Nova Saving Account 5. Ace Saving Account 6. Easy Saving Account Term Deposits Loans 1. Personal Loans 2. Home Loans 3. Home Loan Balance Transfer 4. Home Improvement Loans Cards 1. Gold Debit Card 2. Global Debit Card 3. Best Compliments Card 4. Netc@rd 5. Access India Card Investment Services 1. Demat 2. Mutual Funds 3. Insurance

4. Kotak Gold Eternity Convenience Banking 1. Net Banking 2. Mobile Banking 3. Payment Gateway 4. Phone Banking 5. ATM Banking 6. SMS Banking 7. Alerts

SAVING DEPOSITS
Saving Bank Account Savings Bank Account as the very name suggests, are intended for savings for the future. The object is to save in small or big amounts from time to time. On opening an account with us, you get wide range of facilities as under in a totally Computerized Banking Environment. The facilities offered - :
• • • • •

Free 4 Cheque books per Calendar Year Free ATM Card Facility Tele-Banking & Fax-on-demand Facility D’Mat Facility Safe Deposit Lockers

Free Cheque Book Facility

An accountholder whose account is properly introduced and maintaining a minimum balance of Rs10000/- per month is given a Free cheque book.

Free ATM Card Facility
When you open a savings account with us, you automatically get a free ATM card, which gives you instant access to your account across the branches, 24 hours 365 days. Your ATM card gives you to conduct transactions such as cash withdrawal up to Rs 15000/-, Cash / Cheque Deposit, balance inquiry, last 5 transactions, PIN change etc. free of Cost.

Tele-Banking & Fax–on-Demand Facility
When you open an account at our branches , you can enjoy the benefits of Tele-banking & Fax-on-demand facility. You will receive a PIN ( Personal Identification Number), which enables you to contact the bank and conduct the following transactions on your own over the telephone: 1) Balance Inquiry 2) Last 5 Transaction 3) Cheque book Request 4) To record request for statement of account 5) To switch to your another account for information 6) To change PIN number. 7) To get the statement of Account on your Fax

D’Mat Facility
On opening an account with us you can also avail D’mat facility for dematerialization of shares and conduct transactions through D’Mat Account.

Interest Rate
Interest on your savings account is 3.5 % p.a and is calculated on a monthly basis , based on the minimum balance in your account between the 10th and the last day of the month , and is credited to your savings bank account at the end of every 6 months.

Eligibility
Savings Bank accounts may be opened in the names of An Adult 1) Individual - single account / Joint account 2) Minors – operated upon by guardians natural or court appointed. 3) Illiterate persons – operated by thumb impression. 4) Trusts - Private or Public. 6) Credit / Housing Co-operative Societies 7) NRI /NRO

CURRENT DEPOSITS
Current Accounts ,as distinguished from Savings Bank Accounts are active accounts opened mainly by members of business community trade , corporate bodies or professionals where the account holders have to receive money frequently and to make a number of payments during course of their business activities or profession. On opening a Current account with us ,you will receive much more than all the basic facilities you need to operate your business account.

• Current Account :

The facilities offered - :
• • • • •

Cheque book Any Branch Banking Free ATM Card Facility Tele-Banking & Fax-on-demand D’Mat Facility

Cheque Book Facility
All current accounts are invariably required to be introduced by some one known to and approved by the bank. An accountholder whose account is properly introduced and maintaining a minimum balance of Rs 3000/- is given a cheque book facility.

Any Branch Banking

On opening a Current account we give the facility of Any Branch Banking at any of the branches , either on the ATM upto a limit of Rs. 15000 and across the counter upto a limit of Rs 25000/-

Free ATM Card Facility
When you open a Current account as a sole proprietor, you are entitled to a free ATM card ,which gives you instant access to your account across the branches , 24 hours 365 days. Your ATM card gives you to conduct transactions such as cash withdrawal of Rs 15,000 /- , Cash or Cheque deposit , balance inquiries , last 5 transactions , PIN change etc. at free of cost.

Tele-Banking & Fax–on-Demand Facility
When you open an account at our branches , you can enjoy the benefits of Tele-banking & Fax-on-demand facility.You will receive a PIN( Personal Identification Number), which enables you to contact the bank and conduct the following transactions on your own over the telephone : 1) Balance Inquiry 2) Last 5 Transaction 3) Cheque book Request 4) To record request for statement of account 5) To switch to your another account for information 6) To change PIN number. 7) To get the statement of account on your Fax

TERM DEPOSITS
As distinct from a Savings Bank deposit or Current Account deposit , a Term Deposit refers to a deposit kept for a predetermined definite period of time at an agreed rate of interest.

Fixed Deposit (Q)
which is ordinarily for a period of one year and upto 5 years in complete quarters and in multiples of Rs 10000 /- Interest is payable at Quarterly rests.

Services Offered : TeleBanking :
Tele-Banking & Fax on Demand Service We offer our customers Free Tele-Banking and Fax on Demand service to all our customers to carry out banking activities round the clock, everydayTele-Banking and fax on demand service offer wide range of transactions without ever entering the bank :

• • • • • •

Latest Balance Last 5 Transactions Request for statement of Account Cheque Book Request Change PIN Change Switch to your another Account

Latest Balance :
You can Tele-Banking and Fax on Demand Service to know your latest balance in your savings and current Accounts.

Last 5 Transactions :
You can have the details of the last 5 transactions read out to you at the touch option .You can even have a mini account statement faxed to you.

Request for a statement of Account :
You can request for a statement of accounts for a specific period to be mailed to you or you collect the same by coming to the branch.

Cheque Book Request :
You can register a request for a new cheque book using telebanking facility. On registering for a new chequbook the same will be kept ready.

PIN Change :
You have the option to change your PIN (Personal Identification Number) by touch of the button and by sitting at your place.

Switch to another Account for Information :
If you hold multiple accounts with us you have the option to switch between the accounts to know your account details.

Any Branch Banking 1. Features
This facility will enable our clients to withdraw money upto Rs. 25000/- across the counter or upto Rs. 15000 /- through ATM from any of the branches. Withdrawal of Cash on ATM will be available round the clock.

2. Benefits Deposit Cash - You can deposit cash using any branch banking across the
counter during business hours and will be credited to your account on the same day.

Transfer of Funds - You can transfer funds between your accounts from
one branch to another across the counter.

Mini-Statements - You can get a mini-statement for your last 5 transactions
of your accounts by using ATM or across the counter.
3.

Eligibility

You can use the Any Branch Banking Facility if you are • • A savings Account holder with authority to operate the account in individual capacity. A current Account holder in individual Proprietorship or Partnership

4. Application Process
• • Open a Savings or Current Account Fill up ATM Application form available at the branches.

• ATM Banking
You can do banking business using ATM facility beyond our banking hours. So we have established a network of ATMs across the cities to give you the flexibility to access your account 24 hours 365 days.At our ATMs, you can conduct the following transactions–

• • • • • •

Balance Enquiry Cash Withdrawals Statement of Account Deposits PIN Change Transfer of Funds

Balance Enquiry
You can use your ATM card to know your balance in the account.

Cash Withdrawals
You can withdraw up to Rs 15,000/- per day on your ATM Card . You can also use the fast cash option , which allows you to withdraw money in mltiples of Rs 500 /-

Statement of Account
You can request a statement of the last 5 transactions on your account .Your statement of account will be printed on the transaction slip.

Deposit
Our ATMs enable you to deposit cash or cheques into your account at

any time. All you have to do is select the account onto which you want to make your deposit , fill out a deposit slip, put your cash or cheque into the envelope provided at the ATM, and insert it into the slot provided.

PIN Change
Using your ATM to change your Personal Identification Number (PIN) assures you complete security. Your PIN number is not displayed on the screen, being replaced by crosses to ensure the secrecy of the transaction.

Transfer of Funds
Our ATMs make transferring funds between two of your bank accounts easy. All you have to do is select the account from which you want to transfer funds, then indicate the amount of money you want to transfer, and the account into which you want to make the transfer. Both accounts must be linked to your ATM Card.

Term Deposits for senior citizen

Eligibility : A person who has completed the age of 60 years

may be treated as a senior citizen for getting the benefit under the scheme for senior citizens.

Verification of Age :At the time of opening of a new deposit account of a
senior citizen, the branch should satisfy about the age through verification of any of the following documents:-

     

School Leaving Certificate LIC Policy Voters Identity Card Pension Payment order Birth Certificate issued by the competent authority Driving Licence / Ration Card

• Account Opening Procedure
a) In sole name with nomination (nomination is mandatory) or In joint name styled ‘ Either or Survivor’ or ‘Former or Survivor’. The name of Senior Citizen should be in the first name

• Additional Facilities
b) Free D’mat account with no annual maintenance charges of our Bank c) Free issuance of our Bank’s pay order from Saving Bank Account of Senior Citizen d) No Penalty for Pre-mature Withdrawal of Fixed Deposit e) 100% Loan facility to senior citizen against Fixed Deposit @ 1% interest over fixed deposit rate

Balance Sheet
Mar ' 07 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds 326.16 1,335.77 309.29 555.30 123.32 633.61 59.53 546.78 59.21 0.02 482.24 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03

Secured loans Unsecured loans Total

11,000.09 12,662.02 Uses of funds Fixed assets

6,565.92 7,430.51

4,299.54 5,056.48

4,459.34 5,065.65

256.81 798.27

Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

273.57 132.48 141.09 6,861.96 Net current assets 692.33 2,153.65 -1,461.32 5,541.73 Notes: 6,861.96 1,00,874.15 3261.56

205.28 100.05 105.23 2,855.53 273.31 1,135.38 -862.06 2,098.69 2,855.53 4,135.36 3092.95

168.57 71.47 97.10 1,826.97 151.26 470.89 -319.63 1,604.45 3,641.62 1233.24

134.46 49.20 85.26 2,882.77 73.48 239.67 -166.19 2,801.84 938.49 595.33

113.95 34.16 79.79 706.66 49.17 213.98 -164.81 621.64 184.24 592.13

Interest Rates: Interest rates on Fixed Deposits for Individual Borrowers Interest Rates on Deposits Maturity Periods Less than Rs. 15 Lacs No Quote 4.00% 5.00% Annualised Yield Rs. 15 Lacs and Above But Below Rs. 1 Crore No Quote 4.50% 4.00% 5.00% 5.00% 5.50%

7 - 14 Days 15 - 30 Days 31 – 45 Days

46 – 90 Days 91 – 180 Days 181 – 270 Days 271 Days to less than 1 Year 1 Year & above but less than 2 Year 2 Year & above but less than 3 Year 3 Year & above but less than 5 Year 5 Year & above upto and inclusive of 10 Year

5.50% 6.50% 7.50% 8.50% 9.25% 9.25% 9.25% 9.00%

5.50% 6.50% 7.71% 8.77% 9.58% 9.58% 9.58% 9.31%

6.25% 7.25% 7.50% 8.50% 9.25% 9.25% 9.25% 9.00%

Sees 82% growth in current and savings account deposits

Comparative Analysis of Current Account Features and Benefits of Private Banks Kotak ICICI HDFC Banks Mahindra Monthly Rs.25,000 Rs.50,000 Rs.10,000 Average Balance No limit Cash Deposits 3 Lacs per month Free upto Rs 3 lacs per month or40 transaction which ever is lower 30 Free per Month Rs 500\ day NA Rs 500\ day IDBI STANDARD CHARTERED Rs.50,000 Rs.10,000 Rs.25,000 AXIS

Rs 5 lacs per month

Rs 3 Lacs No limit per month

Free , Demand Unlimited Drafts Cash Yes , Free Delivery Yes Beat Service Yes Cheque Pick up

Free upto Rs 6 lacs Rs 130\ day NA Rs 30

Free upto Rs 5 lacs Rs 825\day NA Rs 825\day

Free upto Rs 3 lacs NA NA NA

Free upto 2 per day Rs 100 Daily Rs 1000| month Rs 100

Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank Kotak Mahindra Bank

SAVINGS ACCOUNT

CURRENT ACCOUNT

Edge Pro
Yes Yes Yes Yes

Ace
Yes Yes

Edge
Yes Yes

Pro
Yes Yes

Ace
Yes Yes

Yes Yes No Yes

Yes Yes No Yes

Yes Yes Yes Yes

Yes Yes No Yes

Yes Yes No Yes

Yes Yes Yes Yes

Yes Yes No Yes

Yes Yes No Yes

Yes Yes Yes Yes

Yes Yes No Yes Yes

Yes Yes No Yes Yes No

Yes Yes No Yes Yes Yes

No

No

No

No

10,000 20,00 0

75,000

25,000

50,000

2,50,000

HDFC Bank

Features and Ben efits

Saving Account

Current Account

Regular Saving Saving Account
ATM Facility Mobile and Net Banking ATM Facility International Debit Card Personalised Cheque Online Bill Pay Sweep in And Super Saver A/c Statement Facility AQB

Saving No Max A/c Frill A/c Yes Yes Yes No Yes Yes No Qtly Nil

Family Plus C Saving A/c

Regular Premium A/c C A/c

Plus

Saving A/c Yes Yes Yes Yes Yes Yes Yes Qty 10000 No No Yes No Yes No No No No Yes No Yes No No No No Yes No Yes No No

Yes Yes Yes Yes Yes Yes Yes By mail 5000

Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes

Monthly Yes 10000 25000

Monthly Monthly Monthly 100000 10000 400000

Comparative Analysis of Different Financial Products of Private Sector Bank Regarding Current A\c , Saving A\c Banks HDFC Bank ICICI Bank ING VSAYA KOTAK MAHINDRA Fixed Deposit Banks HDFC ICICI Axis Standard Chartered Kotak Mahindra Current a\c minimum Deposit Rs. 10,000 Rs. 50,000 Rs. 10,000 Rs. 25,000 Rs. 25,000 Saving a\c minimum Deposit Rs. 5000 Rs. 10,000 Rs. 5000 Rs. 15,000 Rs. 10,000 Fixed Deposit Rs. 25,000 Rs. 25,000 Rs. 10,000 Rs. 50,000 Rs. 25,000 Current A\c 7 6 4 3 Saving A\c 12 2 7 6 Comparative Analysis of Minimum Balances of Different Private Sector Bank Regarding Current A\c , Saving A\c &

Banks Kotak Mahindra ICICI ABN AMRO HSBC Standard Chartered ING Vsaya IDBI

Rate of Interest on Saving A\C 3.5% 2.25% 3.5% 3.5% 3.25% 3.5% 3.5%

Rate of Interest on Fixed Deposit(more than 1 years) 9.58 % 8.25% 8% 7.5% 6.5% 9.5% 8.75%

Banks Kotak Mahindra ICICI HDFC Others

Current & Saving Account (CASA) Deposits 2,248 cr 63,781 cr 54914 cr 22612 cr

CHAPTER-ІІІ Research Methodology

Introduction: This study is carried out to find sales trend/potential of Kotak Mahindra Bank and its financial Products in Lucknow city for this primary data has been collected by conducting market survey.

Research Design: A descriptive research design is adopted for this study. Survey has been conducted with the help of questionnaire to collect primary data. The data has been collected from retailers and doctors from some areas of Lucknow city such as Hazratganj, Aminabad, Chowk, Latouche Road, Haider Ganj, Rajajipuram, Gomti nagar and Indira Nagar respectively. Regarding to this study some of the objectives were framed to find out the sales trend of Financial Product and Market share of Kotak Mahindra Bank in comparison with different other private sector banks. For fulfillment of objectives some hypothesis have been designed. Hypothesizes for this study are given below;

Hypothesis of Study
For these objectives some of the hypothesizes have been framed which are given below; Hypothesis 1; H0: There is significant relation between customer preference and bank’s financial products. H1: There is no significant relation between customer preference and bank’s financial products.

Hypothesis 2; H0: There is significant relation between bank’s financial products and business development. H1: There is no significant relation between bank’s financial products and business development.

Sample Design: Hazratganj, Aminabad, Chowk, Latouche Road, Haider Ganj, Rajajipuram, Gomti nagar and Indira Nagar are some of the areas in Lucknow city which are taken for the study. On the basis of pilot study a sample size of 100 respondents have been taken. Data Collection: Data is both of primary as well as secondary type. Many previous research papers, journals, business reviews forms the basis for secondary data. For the purpose of primary data collection, a set of closed ended questions is designed whereby in depth interviews of the respondents are done.

Name of Banks Kotak Mahindra HDFC ICICI Others

No of Respondents 50 35 30 35

Financial products Saving Current Fixed Deposits

No of Respondents 48 25 27

Data processing and analysis: After data collection the data analysis is done by implementing statistical tool named Chi-square test. Chi-square test is used for the hypothesis testing which were framed for fulfillment of objectives of this research problem. The level of significance is 5% for hypothesis testing. Degree of freedom varies regarding to the table format in other words depends on no of column and rows. Apart from manual calculation, statistical software named SPSS is also used for the calculation part. Limitations: Some of the limitations of this project are given below;

• •

The research is limited to 150 people in some of the areas of Lucknow city. It is not accurate data because it is collected from only few people from some of the areas of Lucknow city. The people owe to there work were very busy and due to lack of time they have not given ample time for this study. Some of them did not entertain me for this job. Some people shown non-cooperative behavior at the time of data collection for this study. Indian Banking System is the vast explanation So I feel difficult to collect the data’s, which is related to my topics. Shortage of time is yet another limitation of the study.

• •

.

CHAPTER-ІV
Data Analysis & Inference

Name of Banks

No of Respondents

Kotak Mahindra HDFC ICICI Others

50 35 30 35

Hypothesis Testing Hypothesis testing is done by Chi-square test; χ2 = ∑k (Oi - Ei)2 i =1 Ei χ2 = Chi-square, Oi = Observed Frequency, Ei = Expected Frequency, k = number of categories

Degree of freedom = 3, Tabulated value at 5% level of significance = 7.815

Banks Kotak

Observed (O) 50

Expected (E) 37.5

(O – E) 12.5

(O – E)² 156.25

(O – E)²\E 4.17

HDFC ICICI Others

35 30 35

37.5 37.5 37.5

- 2.5 -7.5 -2.5

6.25 56.25 6.25

0.17 1.5 0.17

Calculated Chi-square value( χ2 ) = 6.01 Inference The calculated Chi-square value is 6.01 which is less than the tabulated value 7.815 thus the calculated value holds good for null hypothesis and there is significant relation between customer preference and bank’s financial products. Market Share For calculating market share of Kotak Mahindra Bank among other Banks number of respondents are compared with the total sample size of 150.

23% 34% Others Kotak

ICICI 20% HDFC 23%
Inference

The market share of Kotak Mahindra Bank is 34% which is highest among other Banks.

Financial products Saving Current Fixed Deposits

No of Respondents 75 45 30

Hypothesis Testing Hypothesis testing is done by Chi-square test; χ2 = ∑k (Oi - Ei)2 i =1 Ei χ2 = Chi-square, Oi = Observed Frequency, Ei = Expected Frequency, k = number of categories Degree of freedom = 2, Tabulated value at 5% level of significance = 5.991

Banks Financial Products

Observed (O)

Expected (E)

(O – E)

(O – E)²

(O – E)²\E

Saving Current Fixed Deposits

75 45 30

50
50

-25 -5 -20

625 25 400

12.5 0.5 8

50

Calculated Chi-square value( χ2 ) = 21

Inference The calculated Chi-square value is 21 which is more than the tabulated value 7.815 thus the null hypothesis is rejected and there is no significant relation between bank’s financial products and business development.

Market Share

For calculating market share of Kotak Mahindra Bank among other Banks number of respondents are compared with the total sample size of 150.

20%

0% 50%

1 3 5

30%

0%

Inference From the Pie chart it very clear that out of the sample size of 150 about 50% of them have Saving Account in the Bank .30% have current account and the remaining 20% have Fixed deposit in the banks.

Financial Products Saving a\c

Kotak Mahindra 12 5

ICICI 25 10 8

HDFC 20 17 9

Others 18 13 8

Current a\c 5 Fixed Deposits

Saving a\c
30 ICICI 25 25 HDFC 20 20 Others 18 Kotak 12 10

15

Series2

5

0

Inference From the Histogram it is very clear that out of the 150 respondent surveyed , when it come to opening of Saving Account more person prefer ICICI Bank in comparison to other Bank being taken in the survey.

Current a\c
18 HDFC 16 Others 13 17

14

12

ICICI 10

10

8 Kotak 6 5

4

2

0

Inference From the Histogram it is very clear that out of the 150 respondent surveyed , when it come to opening of Current account more person prefer HDFC Bank in comparison to other Bank being taken in the survey.

Fixed Deposits
10 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 5 Kotak 8 9 8 ICICI

HDFC Others

Inference From the Histogram it is very clear that out of the 150 respondent surveyed , when it come to Fixed Deposits the preference of the customer for Bank taken in the survey is mixed.

CHAPTER-V Interpretation & Findings

After data analysis and hypothesis testing it is evaluated that null hypothesis holds good. and there is significant relation between customer preference and bank’s financial products As, the calculated value of χ2 is less than the tabulated value , null hypothesis holds good .

After data analysis and hypothesis testing it is evaluated that null hypothesis does not holds good the null hypothesis is rejected and there is no significant relation between bank’s financial products and business development. As, the calculated value of χ2 is more than the tabulated value , null hypothesis does not holds good. . As per the survey conducted, it is to be noticed a good sector of the people prefer to be customers of nationalized banks. This result can be very well explained by the fact that nationalized banks are acquainted with the Government and that ups and downs in business will not affect the existence of the bank. Also the RBI too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. However it is also seen that a good percentage of people also opt for private banks such as ICICI, bearing in mind the amount of experience they posses in the field of banking. These private banks, even though living with nationalized banks, which have the lion’s share, appear to be huge market players and market turners. As per the data analysis it was seen that KMBL is prioritizing the premium class and middle class and not to the needs of lower class people the reason behind doing so is, that by targeting the premium class people they can have a good float because by maintaining float they can lend in the call money market or they can utlize the money by keeping in the currency chest. As KMBL is not targeting the needs of lower end customers it is because maintaining account for low range customers will lead to increase in the operating cost of the bank and they don’t have that type of income to go for this option. As banks operation has recently started in LUCKNOW region so they are initially targeting the higher end customers. Where as if we talk about ICICI, HDFC bank then they are targeting to both higher and lower end customers because they do have wide accessibility of ATMS and also they have more branches then Kotak Bank. As these two banks has there operations from a long time if compared to Kotak Bank that’s why customers or people have a good awareness of these two banks The range of products of Hdfc ,ICICI, is much more than that of Kotak Mankindra that’s why people wants to open there account or have relation with these two banks as they can find all there financial needs under a single roof. According to the survey conducted on which banks are people associated with it was seen that nationalized banks achieved the more or less same amount of preference ratio as seen above. In the sample size of 150, a huge portion of people

are associated with nationalized banks. This particular survey also shows the same results for the rest of the banks, in the order “private banks, international banks and co-operative banks” respectively.

On a global scale technological innovations have been the main reasons for International banks to become market drivers and leaders, but the same cannot be said about India. Here improvement of technology has not yet played over the minds of the people. It can be said that only the higher society of the Indian population would consider technological innovations to be very important in terms of deciding the importance of the bank. The other parts of India would hardly consider it to be reason in selecting the bank.

Keeping in mind the above analysis most of the people surveyed in this sample were not even aware of the different services provided by the bank. Mobile banking and net banking were Greek and Latin to them. Such people would keep technology in mind to select the bank. But on the other hand the people who understand the importance of technology recognized the various services that are provided and also mentioned that technology today in India has made banking easier. However a huge sector of the people surveyed knew the importance of an ATM or Credit cards, but the usage of these facilities was not found to be up to the mark.

As seen at the start of this particular analysis the type of bank people are associated with stays the same even when given the choice of considering a change of bank. People who are associated with their particular bank do not wish to change as the reasons for their selection are satisfied by the bank. The few people who were not satisfied with their particular bank, their reasons for non satisfaction range from bad customer service to lack of technology to limited schemes provided to them

SUGGESTIONS
• First of all the changes in the attitude of the staff should be arising in the banks.

• • • • • • • •

Customer care service should be implemented in the voluntary method. New technologies must be used in every service and functions made by the bank. Computerization system should be used in every function on the bank. There should be transparency in all services offered by the banks. The operations of all the banks should be in 24 hrs. Online transactions and information technologies must be introduced and made in use in every bank. They should try to avoid the credits frauds. E-commerce and E-banking must be introduced in every bank

BIBLIOGRAPHY

Websites      www.google.com www.rbi.org www.banknetindia.com www.thehindubusinessline.com www.kotakMahindra.com

Libraries referred  College library  Reserve Bank of India library (Did not allow us to refer) Books/Journals/Bulletins  Banking Finance  RBI Bulletin  Indian Banking  Commercial Banking in India  Co-Operative Banks  Economic Times

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