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PROJECT REPORT ON
A COMPARITIVE ANALYSIS OF
DIFFERENT PRODUCT AND MARKETING
STRATEGIES OF KOTAK MAHINDRA
BANK W.R.T OTHER BANKS
PREFACE
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
relative valuation.
ar e
ava i l a b l e
at
at t r a c t i ve
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.
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.
Financial constraint.
INDUSTRY PROFILE
Public sector
Private sector
Foreign Banks
Regional Rural
Banks
Banks
in India
Bank
(29)
(102)
(28)
Nationalized
Bank
Other Public
Sector Banks
(IDBI)
SBI and its
Associates
(27)
Old Private
Banks
New Private
Banks
Banks (55)
Banks (31)
The banks which have been setup in the 1990s under the guidelines
of the Narasimham Committee are referred to as NEW PRIVATE
SECTOR BANKS.
The countrys 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.
their
the
regulation.
the report.
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.
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
Discounting
1987
Purchase market
1990
1991
1992
1995
1996
1998
2000
: Kotak Mahindra ties up with Old Mutual plc. for the Life
Insurance
business.
2003
CHAPTER-2
COMPANYS PROFILE
Established in 1984, The Kotak Mahindra Group has long been one of
Indias most reputed financial organizations. In Feb 2003, Kotak Mahindra
Finance Ltd., the groups 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 ATMS in
India and 800000ATMS worldwide accepted in more than 56000
establishments across India and 10 million worldwide. The customer also
has access to over 800 ATMs with sharing arrangements with UTI BANK,
of these 125 are in the NCR.
BOARD OF DIRECTORS
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
SAVINGS ACCOUNT
Choose from our range of Savings Accounts
of
Rs.
10000
(KOTAK
EDGE
SAVINGS
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.
Financial payments facilitated through the savings account
Use our 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
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.
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.
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.
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
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
Term Deposits
Key Features
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.
INVETSMENT SERVICES
Key Features
them
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
commodity
by
MCX
( Mu l t i
C om m o d i t y
to trade in
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 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 he 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
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
movements
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
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.
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
MACHINES
(DELHI)
60
Bank
ICICI Bank
HDFC Bank
IDBI
CITIBANK
HSBC
AMN Amro
UTI
GTB
112
66
43
22
21
13
20
560
625
350
160
103
40
507
250
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.
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
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 its
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.
COMPETIVE PROFILE
HDF C BA N K
The Housing Development Finance Corporation Limited (HDFC) was
amongst
the first
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
761
Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605
ATMs
in 320
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
Banks
PERSONAL BANKING
Loan Product
Deposit Product
Investment &
Insurance
Auto Loan
Loan
Against
Security
Loan
Against
Property
Saving a/c
Mutual Fund
Current a/c
Bonds
Fixed deposit
Knowledge
Demat a/c
Safe Deposit Lockers
Personal loan
Centre
Insurance
General and
Credit card
Health
2-wheeler loan
Insurance
Commercial
vehicles finance
and
Derivatives
Mudra Gold
Home loans
Retailbusiness
banking
Tractor loan
Working
Equity
Capital
Bar
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
------------------------------Forex Services
------------------------------ Product & Services
Trade Services
Forex service
Banking
DirectPay
VisaMoney Transfer
eMonies
Electronic
Funds Transfer
Online Payment of Direct
Tax
Email
Statements
Branch
Network
Branch Locater
RBI Guidelines
WHOLESALE BANKING
Corporate
Funded
Services
Non
Funded
Services
Financial Institutions
Enterprises
and Trusts
Funded Services
Non
Internet
Funded Clearing
Sub-
Membership
Services
BANKS
added
services
Internet Banking
submembership
Fund Transfer
ATM Tie-ups
Banking
and
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, whos youre 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 ones Savings Account. So, even if ones
Savings Account runs a bit short, one can issue a cheque (or use ATM
Card). The money is automatically swept in to ones Savings Account
from ones Fixed Deposit Account. The excess funds in the account
are directly transferred to the fixed deposit account of the account
holder.
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
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
Maximum loan
85% of the cost of extension
Maximum Term
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
its overseas operations in the last three years and now has presence in 18
countries either through subsidiaries or representative offices .Together with
its subsidiaries , ICICI Bank offers a complete spectrum
of financial
ICICI Bank will remain a one of the most fancied stocks among the
investors who believe in Indias 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 .
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
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, ATMs and other technological device to
reach and serve the customers
CHANNEL STRATEGY:
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
3) OUT-DOOR ACTIVITIES :
Need to be seeneverywhere!!
Events at corporate campus
Promotional material at channel partner outlets
Billboards
Signages
Kiosks in residential and commercial complexes
4) OTHER INITIATIVES :
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
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
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 ATMs 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
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.
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.
3.
below:
i
ii
Based on the prevailing rate of interest, the bank staff would then
5.
Free Domestic Debit Card* for the child above the age of 10 years
6.
Separate user ids and passwords for both parents and children
Access to special zones and links to related websites for making
Womens 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 "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.
Call center
Internet Banking
Mobile Banking
Escrow Account:
Regulatory requirements
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 Banks Roaming
Current Account simplifies banking for them.
Product Features :-
Mobile Banking
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
Over 2 years
17%
Less than 6
months
3%
6 months to 1
year
30%
1 to 2 years
50%
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.
44%
Brand Name/Reputation
of bank
Advertisement
16%
0%6%
Branch near
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
26
25
20
16
15
10
0
Visit Branch
ATM
Phone
Banking
Drop Box
2
Internet
Banking
0
Door Step
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 its 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
26
25
20
15
14
10
10
5
0
Very Satisfied
Somewhat
Satisfied
Neither
Satisfied nor
Dissatisfied
Somewhat
Dissatisfied
Very
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
25
20
15
15
10
10
5
0
Very Satisfied
Somewhat
Satisfied
Neither
Satisfied nor
Dissatisfied
Somewhat
Dissatisfied
0
Very
Dissatisfied
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.
25
20
15
14
10
10
0
Very Satisfied
Somewhat
Satisfied
Neither
Satisfied nor
Dissatisfied
Somewhat
Dissatisfied
Very
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.
ATMDcor of Bank
0%
12%
Courteous Staff
26%
Efficient service
62%
Branches/Other Bank Interaction points but this was not the most important
aspect.
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.
Chapter-5
CONCLUSION
1. Kotak Mahindra Bank is Leading Bank in the country, it
provides a
home baking, special co-branded debit cards (Smart fill Debit Card)
which makes its product unique.
6.
Extended happy hours at certain pubs in Delhi for the Banks 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.
8.
9.
The Bank has tied up with other Banks so that its customers can use
other Banks 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, Dcor 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
above 5 Lakh
1. Do you hold a saving account?
Yes
2. If yes in which banks.
No
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
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
Disagree
Strongly Disagree
No
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 Banks 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 1990s 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 customers 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.
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.
-