CRM Cia 3

CUSTOMER RELATIONSHIP MANAGEMENT - MBA642BM
CIA-III
KOTAK MAHINDRA BANK
Submitted in partial fulfilment of the requirements

for the degree of Master of Business Administration
By
ADISHESHA SAIRAM 1827901
ASHUTOSH PATKI 1827906
AYUSH JAISWAL 1827907
GARLAPATI NIKHITHA 1827941
LIZA CHETRI 1827944
MANISHA AMERIYA 1827945
Under the Guidance of
Dr Kerena Anand
Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru

WHAT IS BANKING?
Banking in a traditional sense is the business of accepting deposits of money from public for
the purpose of lending and investments. These deposits can have a distinct feature of being
withdrawal by cheques, which no other financial institution can offer.
In addition, banks also offer various other financial services, which includes: –
 Issuing Demand Draft and Travelers Cheques

 Credit Card
 Collection of Cheques, Bills of Exchange
 Safe Deposit Lockers
 Issuing Letters of Credit and Letters of Guarantee
 Sale and Purchases of Foreign Exchange
 Custodial Services
 Investment and Insurance services
The business of banking is highly regulated since banks deal with money offered to them by
the public and ensuring the safety of this public money is one of the prime responsibilities of
any bank. That is why banks are expected to be prudent in their lending and investment
activities. Every bank has Compliance department, which is responsible to ensure that all the
services offered by the banks and the processes followed are in compliance with the local
regulation and the bank’s corporate policies:
 Banking Regulation Act, 1949

 Foreign Exchange Management Act, 1999
 Indian Contract Act, 1872
 Negotiable Instrument Act, 1881
Banks lend money either for productive purposes to individuals, firm corporate etc. or for
buying house property, cars and other durable and for investment purposes to individuals and
others.
However banks do not finance any speculative activity. Lending is risk taking; having prudent
norms for lending should cover the risk. The depositors of banks are also assured of their money
by deploying some percentage of deposits in statutory reserve like SLR and CRR.
BANKING INDUSTRY IN INDIA
Banking in India has its origin as early as the Vedic period. It is believed that the transition
from money lending to banking must have occurred even before Manu. The great Hindu Jurist,
who has devoted a section of his work to deposits and advances and lay down rules relating to
rate of interest. During the Mogul period, the indigenous banker played a very important role
in lending money and financing foreign trade and commerce. During the days of the East India
Company it was the turn of the agency houses to carry on the banking business.
The General Bank of India was the first joint Stock Bank to be established in the year 1786.
The others, which followed, were the Bank of Hindustan and Bengal Bank. The bank of
Hindustan is reported to have continued till 1906 while the other two failed in the meantime.
In the first half of the 19th century of East India Company establish three banks; The Bank of
Bengal in 1809, the Bank of Bombay in 1840 and the bank of madras in 1843. These three
banks also known as presidency Bank were independent units and functioned well. These three
banks were amalgamated on 27th January 1921. With the passing of the State Bank of India
Act in 1955 the Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a
number of bank with Indian management were establish in the country namely, Punjab
National Bank Ltd., Bank of India Ltd., the Central Bank of India Ltd., Indian Bank Ltd., the
Bank of Baroda Ltd., and the Central Bank of India Ltd. On July 19, 1969 fourteen major
banks of the Country were nationalized & in 15th April 1980 six more commercial private
sector banks were also taken over by the Government.
KOTAK MAHINDRA GROUP:

KOTAK MAHINDRA GROUP is one of India's leading financial institutions, offering
complete financial solutions that encompass every sphere of life. From commercial banking,
to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to
the financial needs of individuals and corporate.
The group has a net worth of around Rs.2900 Crores and employs over 8800employees in its
various businesses. With a presence in 74 cities in India and offices in New York, London,
Dubai and Mauritius, it provides services to a customer base of over 500000.
Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest
investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated
automobile financiers) and Old Mutual (a large insurance, banking and asset management
conglomerate).
THE JOURNEY SO FAR...
HISTORY OF GROUP
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited.
Mr.Uday Kotak, Sidney A. A. Pinto and Kotak & Company promoted this 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.
1985 The company was incorporated on 21st November 1985 under the name Kotak
Capital Management Finance Ltd. The Company has been promoted by Mr. Uday S.
Kotak, Mr. S.A.A Pinto and Kotak & Company. The company obtained the certificate
of commencement of business on 11th February 1986 and the Existing promoters
were joined by Mr Harish Mahindra and Mr. Anand Mahindra. The company's name
was changed on 8th April 1986 to its present name Kotak Mahindra Finance Ltd.
- The Company deals in Bill discounting, leasing and hire purchase, corporate
finance, management of fixed deposit mobilization, financing against securities,
money market operations, consumer finance, investment banking and clients' money
management.
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting.
1987 Kotak Mahindra Finance Limited enters the Leases and Hire Purchase market.
1990 3,08770 No. of equity shares subscribed for by the promoters, directors, 3,41,230 No.
of equity shares allotted as rights as on 28.3.89. 19,50,000 shares issued as bonus
(6,50,000 shares in prop. 1:1 as on 29.7.89 and 13,00,000 shares in prop. 1:1 as on
27.2.91). The Auto Finance Division is started
1991 The Investment Banking Division is started.
Takes over FICOM, one of India’s largest financial retail marketing networks.
An application was made to SEBI for approval for setting up a Mutual Fund trust and
an asset management company. The newly set up Corporate Advisory Services
Group received several mandates for advice on mergers and acquisitions and re-
structuring.
The Company's newly established Foreign Exchange Risk Management Service

carters to the vast potential demand for price risk management. The Company
established itself as a major leasing and hire-purchase company and as a source of
finance for purchasers of automobiles.
1992 Enters the Funds Syndication sector. In January, the Company offered and allotted
15,50,000 - 14% secured partly convertible debentures of Rs 90 each for a total value
of Rs 13.95 crores in the following manner: (i) 2,00,000 debentures to promoters,
directors, etc. (ii) 77,500 debentures to employees (including working
directors)/workers on preferential basis (iii) 12,72,500 debentures to Indian public
through prospectus.
- Additional 30,000 debentures to promoters, directors, etc., 9,500 debentures to

employees and 1,93000 debentures to Indian public were allotted to retain
oversubscription.
- As per the terms of debenture issue, a portion of Rs 45 of each debenture of Rs 90

was to be converted into 1 equity share of Rs 10 each at a premium of Rs 35 per share
as on the date of allotment of the debentures. Accordingly 17,82500 No. of equity
shares allotted as on 25th February, 1992, being the date of allotment of the
debentures. The non-convertible portion of Rs 45 of each debenture would be
redeemed at par in three equal installments of Rs 15, Rs 15 and Rs 15 at the end of
the 7th, 8th and 9th year respectively from the date of allotment of the debentures.
- In April, the Company has raised Rs. 18 crores by issue of Commercial Paper which
has been awarded P1 + rating by Credit Rating and Information Services of India
limited (CRISIL) indicating highest standards of safety.
1993 During February, the Company issued 69,82,500 Rights equity shares of Rs 10 each
at a premium of Rs 15 per share in proportion 1:1 (all were taken-up). Additional
13,950 shares were allotted to those who had applied for additional shares.
- The Company issued through a Prospectus 4400000 No. of equity shares of Rs 10

each for cash at a premium of Rs 140 per share of which the following were reserved
for allotment (i) 130000 shares to promoters, directors, their relatives etc., (ii)25000
shares to Foreign/Indian Financial Institutions (all were taken up). Of the remaining
50,000 shares reserved for allotment on a preferential basis to employees (only
34,600 shares taken up). Another 555000 shares to NRIs were reserved on non-
repatriation basis (all were taken up).
- Balance 3640000 shares, along with 15,400 shares not taken up by employees', were
offered for public subscription.
- At the 8th Annual General Meeting held on 28th September the Company has
reserved 6122000 No. of equity shares of Rs 10 each for cash to be allotted at such
issue price as may be decided by the board to Foreign Institutional Investors and/or,
Foreign and/or Indian Pension and/or Mutual and/or other Funds and/or Institutions,
Banks, Companies, Bodies and/or individuals and/or Groups of Individuals.
- The Company's newly set up Corporate Advisory Services Group received several
mandates for advice on mergers and acquisitions and re-structuring and some have
already been executed with success.
1994 The Company entered into a Memorandum of Understanding with KB Currency
Advisors Inc. USA to market their Foreign Exchange Fund Management programme.
- 183,65,500 Rights equity shares issued in prop. 1:1. 11,800 No. of equity shares
forfeited.
- The Company has received the approval of Securities and Exchange Board of
India (SEBI) for setting up a Mutual Fund.
1995 Brokerage and Distribution businesses incorporated into a separate company -

Kotak Securities.
Investment Banking division incorporated into a separate company - Kotak Mahindra

Capital Company. The Company issued 400000 - 17% Secured Redeemable Non-
convertible Debenture of Rs 2500 each including 96000 - 16% NCDs reserved for
NRIs/URB (only 9510 taken-up). Unsubscribed portion of 90 debentures issued to
the public. These are redeemable at par on 7.3.2001 with an option for early
redemption up to a maximum of 5% of the issue amount every year.
The Company entered into a joint venture agreement with Ford Credit International
Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA. It was proposed to finance
all non Ford Passenger cars.
Kotak Mahindra Capital company became a subsidiary of the Company
1996 The Auto Finance Business is hived off into a separate company - Kotak Mahindra
Primus Limited.
Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited,
for financing Ford vehicles.
The launch of Matrix Information Services Limited marks the Group’s entry into
information distribution. The Company's operations were affected by the liquidity
crunch, scarcity of resources, sluggishness in the capital markets and the overall
deceleration of economic growth.
The Company has entered into a MOU with the Chubb Corporation, New Jersey,
U.S.A., one of the largest American Insurance firms, to develop a Joint Venture
dedicated to the conduct of casuallity and property insurance business in India.
The Company has invested a sum of about Rs 200 lakhs in Matrix Information
Services private Ltd. (Matrix), a company formed for providing comprehensive value
added information to business and general users. Matrix is a wholly owned subsidiary
of the company.
The Company has divested its entire holding of 20,00,070 No. of equity shares of Rs
10 each of Kotak Mahindra Securities Ltd. (KMSL) and 20,00,000 ordinary shares
of US $ 1 each of Kotak Mahindra International Ltd.
Hamko Financial Services Ltd., Kotak Mahindra Securities Ltd., provides of broking
services to institutional and corporate clients, Kotak, Mahindra Asset Management
Company, Kotak Mahindra International Ltd., an offshore company and Kotak
Mahindra (UK) Ltd., are all subsidiaries of the Company.
The Company's public issue of 400000 16-17% Secured Redeemable Non-

Convertible Debentures of Rs.2500 each for cash at par aggregating Rs.100 crores in
January.
1997 In recognition of the Company's prudent funds management, CRISIL has assigned a
rating of AA+ to the Company's public issue of Non-Convertible Debentures and P1+
for all short term borrowings up to Rs.35000 lakes.
Kotak Mahindra Finance Ltd. has decided to venture into health insurance business.
Kotak Mahindra Finance has launched a new consumer finance product called Kotak
Mahindra K-Value.
Hamko is a 100 per cent subsidiary of KMFL and investment in it was structured to
avoid limitations of Section 372 under the Companies Act.
The company has diversified into various activities for which it has set up
subsidiaries including broking, capital market activities, auto finance, etc
1998 Enters the Mutual Fund market with the launch of Kotak Mahindra Asset
Management Company. Kotak Mahindra Asset Management Company Limited
(KMAMCL) launched its mutual fund schemes in December.
The Company it would launch its mutual fund with two schemes -- KGilt Unit
Scheme and K30 Unit Scheme.
Kotak Mahindra Finance is a joint venture with Goldman Sachs.
1999 The `FAA' (pronounced `F double A') rating assigned to the fixed deposit programme
of Ford Credit Kotak Mahindra (FCKM) has been reaffirmed.
the allotment to the Company of 50,000 equity shares of Rs. 10 each by Kotak
Mahindra Trustee Company Limited (KMTCL) on 12th May
2000 Kotak Mahindra ties up with Old Mutual Plc. for the Life Insurance business.
Kotak Securities launches kotakstreet.com - its on-line broking site. Formal
commencement of private equity activity through setting up of Kotak Mahindra
Venture Capital Fund. Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation
of the US have decided to call off their joint venture for entering the general insurance
business in India.
The Company has decided to set up a venture capital fund with an initial corpus of
Rs. 100 crore.
KMFL has set up a new asset reconstruction division to offer recovery management
services to players in the financial services industry.
The Company Issue of 91,82,500 No. of Equity Shares of Rs. 10/- each for cash at a
premium of Rs. 90/- per share aggregating Rs. 91,82,50,000 to the Equity
Shareholders of the Company on Rights basis in the ratio of one equity share for
every our equity shares held on 15th February.
Mr. K.K. Sheth has resigned effective from May 8.
Kotak Securities an affiliate of Kotak Mahindra Finance Ltd., has launched electronic
broking services for retail investors.
Kotak Mahindra Finance is in talks with foreign insurers for a joint venture in the life
insurance business.
The Company has proposed to start-up capital of Rs 150 crore in its life insurance
joint venture with Old Mutual, the UK based financial services group.
The Company proposes to make the necessary applications to the RBI and the
Insurance Regulatory and Development Authority for entering the life insurance
business.
OM Kotak Mahindra Life Insurance Company, the recently formed joint venture
company of Kotak Mahindra Finance and Old Mutual Plc has filed its application for
approve of life insurance license on 1st September.
Kotak Mahindra Finance Ltd has been assigned And AAA rating (indicating highest
credit quality) for its Rs.510 million medium term borrowing programme.
Fitch India has assigned a rating of Ind AAA to the Rs 51-crore medium term
borrowing program of Kotak Mahindra Finance Ltd for high credit quality and
negligible risk factor. 2001
The Company recommended a swap ratio of 25 shares of KMFL for every share of
Pannier Trading which has a 75 per cent equity stake in Kotak Securities.
The Bharath Petroleum Corporation Ltd (BPCL) has decided to part ways with Kotak
Mahindra, one of the leading domestic financial services company, in its convenient
store venture In & Out.
2002 Matrix sold to Friday Corporation

Launches Insurance Services.
KMFL's business has seen a fast growth with the total disbursement of commercial
vehicle loan of the company in the last fiscal was tuned to Rs. 250cr.
RBI has given in-principle approval to Kotak Mahindra Finance Ltd to convert itself
into a bank, thereby becoming the first ever non-banking finance company converted
into a bank.
Mr Uday Kotak says, there won't be any fresh capital infusion in the bank in the near
future.
KMFL informed BSE the FITCH ratings assigned: Fixed Deposit Programme - Ind
AAA Non-Convertible Debenture - Ind AAA
Mr.Ajay Sondhi has been appointed as the Additional Director of Kotak Mahindra
Finance Ltd.
Kotal Mahindra Finance Company has shortlisted i-flex solutions 'Flexicube' and
'Infosys', 'Finnacle' for its core banking solutions.
KMFL has raised 76.22cr by selling securitized commercial vehicle loans to

investors.
CRISIL has assigned ‘AAA (SO)' rating for Rs.83cr securitization Programme of
Kotak Mahindra Finance Ltd.
Mr.Uday Kotak has been appointed as the Executive Vice Chairman and Managing
Director of the company.
Kotak Mahindra Finance Ltd has mobilized Rs.10489cr , asset-backed securitization

of commercial vehicle receivables.
Business Standard and Business Standard digital have ceased to be the subsidiaries
of Kotak Mahindra Finance Ltd.
Mr.C Jayaram and Mr. Dipak Gupta are appointed as whole time Directors on the
Board of Kotak Mahindra Finance Ltd.
2003 Finance limited converts to a commercial bank-the first Indian company to do so.
Madison Communications has won the Rs.30cr Kotak Mahindra's media AOR
account.
The proposal of changing the name from 'Kotak Mahindra Finance Ltd' to 'Kotak
Mahindra Bank Ltd' and the proposal to change the Authorized capital from
100,00,00,000 divided into 10,00,00,000 equity shares of Rs.10 each has been
approved by the company shareholders.
RBI has granted license to Kotak Mahindra Finance Ltd to embark on its banking
business.
O & M has got the creative account of Kotak Mahindra Bank, and has said to be
working professionally.
Kotak Mahindra Bank has received a lot of interest from portfolio investors, private
equity investors and potential strategic investors.
Kotak Mahindra Bank has entered into an ATM sharing agreement with UTI Bank,
which would allow KMB's customer free access to around 800 ATM's.
Kotak Mahindra Bank has started its operations in New Delhi by inaugurating a
branch Cannaught place office.
Dr.Shankar Acharya has been appointed as the Additional Director to the board of
the bank.
The Board of Kotak Mahindra Bank Ltd accepts the resignation of Mr.S.A.A Pinto
and Mr.M.R Punja as the Directors of the Bank.
Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak Mahindra Capital

Company has constituted itself from a private company to a public limited co. and
has changed its name to 'Global Investment Opportunities Fund Ltd'.
Kotak Mahindra bank has unveiled several home finance products options which
includes Home loan, Home equity Loan, Home loan transfer and Home improvement
loans.
Kotak Mahindra Bank launches online remittance services called, FUNDS to HOME
for Non-resident Indians.
In response to the repo rate cut by the RBI, the Kotak Mahindra Bank has reduced its
lending rates in home loans.
Kotak Mahindra Bank Limited has informed that the equity shares of the Bank have
been delisted from the Delhi Stock Exchange Association Ltd w.e.f December 10,
2003.
2004 Launches India growth fund, a private equity fund. Kotak Mahindra Bank Limited
has informed that the Bank's equity shares will be delisted from The Stock Exchange,
Ahmadabad with effect from January 20, 2004.
Kotak Mahindra Bank sets up branch in Surat
Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an open-ended

equity growth scheme
Kotak Mahindra Bank inks pact with Reuters
2005 Kotak group realigns joint venture in ford credit.
Buys Kotak Mahindra Prime (formerly known as KM Primus Limited) and sells
Ford Credit Kotak Mahindra
Launches a real estate fund. Kotak Mahindra Bank purchases stressed assets worth
Rs 1,000 cr
Kotak Bank join hands with IndianNGOs.com
Kotak Mahindra Bank invests Rs 25 cr in BFW
2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital and Kotak
Securities. Kotak Mahindra joins hand HDFC Bank to share ATMs.
Kotak Mahindra to buy out Goldman Sachs' stake in JVs
Kotak Mahindra Bank sets up branch in Valsad
Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio
2007 Kotak Mahindra Bank Launches Home Banking, Improves Banking Experience.
Kotak Mahindra Bank Launches Home Banking, Improves Banking Experience
Kotak Mahindra Bank Launches Salary 2 Wealth
Kotak Mahindra Bank Launches Kotak Gold Debit Card
Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of IT Returns
2008 Kotak Mahindra Asset Management Company Limited (KMAMCL) launched its
mutual fund schemes in December.
The Company it would launch its mutual fund with two schemes -- KGilt Unit
Scheme and K30 Unit Scheme.
Kotak Mahindra Finance is a joint venture with Goldman Sachs.
1999
The `FAA' (pronounced `F double A') rating assigned to the fixed deposit
programmes of Ford Credit Kotak Mahindra (FCKM) has been reaffirmed.
With the allotment to the Company of 50,000 equity shares of Rs. 10 each by Kotak
Mahindra Trustee Company Limited (KMTCL) on 12th May.
- Kotak Mahindra Bank launched credit cards for its customers.

2009 Kotak entered into tie up with Russia's top investment bank
Kotak Mahindra Bank Wins IT Team of the Year for 3rd Consecutive Time at the
Banking Technology Awards 2008
CORPORATE IDENTITY
An idea in the highest sense of a word cannot be conveyed, but a symbol can be:
The symbol of the Infinite Ka reflects our global Indian personality. The Ka is uniquely while
its curve forms the infinity sign, which is universal. One of the basic tenets of economics is
that man’s needs are unlimited. The Infinite Ka symbolizes that we have an infinite number
of ways to meet those needs.
VISION STATEMENT
 The global Indian financial services brand: our customers will enjoy the benefits of
dealing with a global Indian brand that best understand their needs and delivers
customized pragmatic solutions across multiple platforms. We will be a world-class
Indian financial services group. Our technology and best practices will be benchmarked
along international lines while our understanding of customers will be uniquely Indian.
We will be more than a repository of our customers’ savings. We, the group, will be a
single window to every financial service in costumer’s universe.
 The most preferred employer in financial services: A culture of empowerment and

a spirit of enterprise attracts bright minds with an entrepreneurial streak to join us and
stay with us. Working with a home-grown, professionally-managed company, which
has partnerships with international leader, gives our people a perspective that is
universal as well as unique.
 The most trusted financial services company: We will create an ethos of trust across
all our constituents. Adhering to high standards of compliance and cooperate
governance will be an integral part of building trust.
 Value creation: Value creation rather than size alone will be our business drive.
KEY GROUP BUSINESSES:
Kotak
Kotak
Mahindra
Mahindra
Prime Ltd
Capital Ltd
Kotak
Kotak Key Group
Mahindra
Securities
Businesse Bank Ltd
Ltd
s
Kotak
Kotak Old
Mahindra
Mutual Life
AMC Ltd.
Insurance
KEY GROUP COMPANIES AND THEIR BUSINESSES:

Kotak Mahindra Bank Ltd. is the Kotak Mahindra Group’s flagship company.
Kotak Mahindra Finance Ltd that was established in 1985, was converted into a bank - Kotak
Mahindra Bank Ltd in March 2003 thus becoming the first Indian finance company to be
converted into a Bank. It’s banking operations offers a central platform for customer
relationships across the group’s various businesses. The bank has a presence in the Commercial
Vehicles, Retail Finance, Corporate Banking and Treasury and has recently entered the
Housing Finance segment Kotak Mahindra Capital Company Kotak Mahindra Capital
Company Limited (KMCC), India's premier Investment Bank and a Primary Dealer (PD)
approved by the RBI, is a strategic joint venture between Kotak Mahindra Bank Limited and
the Goldman Sachs Group, LLP. KMCC's core business areas include Equity Issuances,
Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities
and Principal Business.
Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank Limited and
the Goldman Sachs Group, LLP, is one of the India’s largest brokerage and securities
distribution house. Over the years, Kotak Securities has been one of the leading investment
broking houses catering to the needs of both institutional and retails investor categories with
presence all over the country through franchisees and coordinators. Kotak Street - the retail
arm of Kotak Securities Ltd., offers online and offline services well-researched expertise and
financial products to the retail investors.
Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak Mahindra Bank
Ltd and Ford Credit International Inc., (USA) formed to finance all Ford passenger vehicles.
KMP is one of the country’s leading players in car finance and is focused to financing and
supporting automotive and automotive related manufacturers, dealers and retail customers.
Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra

Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds
in excess of Rs. 4000 crores and offers schemes catering to investors with varying risk- return
profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing
only in government securities.
Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak
Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take
important financial decisions at every stage in life by offering them a wide range of innovative
life insurance products, to make them financially independent.
About Kotak Mahindra Bank:

Kotak Mahindra Bank is the flagship company of the group. The company was incorporated in
1985 and over the years has spread its business into the entire spectrum of financial services,
either directly or through subsidiaries
Creating banking history :
Established in 1984, The Kotak Mahindra group has long been one of India's most reputed
financial organizations. 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). This approval creates banking history since Kotak Mahindra Finance Ltd. is the first
Finance company in India to be converted to a bank.
The complete bank:
At Kotak Mahindra Bank, we address the entire spectrum of financial needs for individuals
and corporate. From Retail Finance to Equities, Mutual Funds to Life Insurance and
Investment Banking, we have the products, the experience, the infrastructure and most
importantly the commitment to deliver pragmatic, end-to-end solutions that really work.
A license authorizing the bank to carry on banking business has been obtained from the
Reserve Bank of India in terms of Section 22 if the Banking Regulation Act, 1949. It must be
distinctly understood, however, that in issuing the license, the Reserve Bank of India does not
undertake any responsibility for the financial soundness of the bank or the correctness of any
of the statements made or opinion expressed in this connection.
MAIN RETAIL BANKING SERVICES:
 Deposits
 Savings Account
 Current Account
 Term Deposits
 Investment Services
 Demat
 Mutual Funds
 Banc assurance
 Convenience Banking
 Net Banking
 Phone Banking
 Home Banking
 ATM Network
 Global Debit Card
 Mobile Banking & Alerts
 Loans
 Personal Loans
 Home Finance
CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) is developing into a major element of

corporate strategy for many organizations. CRM, also known by other terms such as
relationship marketing and customer management, is concerned with creation, development
and enhancement of individualized customer relationships with carefully targeted customers
and customer groups resulting in maximizing their customer life time value.
Industry leaders are now addressing how to transform their approach to customer management.
A new form of cross-functional marketing, i.e. CRM is replacing narrow functionally based
traditional marketing. The traditional approach marketing has been continuously questioned in
recent years. This approach emphasized on the management of the key marketing mix elements
such as product, price, promotion, and place within the functional context of the marketing
department.
The new CRM approach, while recognizing these key elements still need to be addressed,
reflect the need to create an integrated cross functional which focus on marketing – one which
emphasizes keeping as well as winning customers. Thus the focus is shifting from customer
acquisition to customer retention and ensuring the appropriate amount of time, money and
managerial resources are directed towards these tasks.
The adoption of CRM is being filled by a recognition that long-term relationship with
customers is one of the most important assets of the organization and that information – enabled
systems must be developed that will give them “customer ownership”. Successful ownership
will create competitive advantage, which result in improved customer retention and
profitability for the company.
CRM an overview:
Businesses today are continually looking for ways to achieve a competitive advantage. Margins
are shrinking, competition is increasing and industries are consolidating. While customer
expectation intensify for quality, service and delivery, businesses are reducing staff and the
same time searching for ways to arm employees with information to make better decisions and
innovate.
Customer is the most important asset in businesses. Consequently, applying some management
resources to improve the customer’s experience and maximize the profit, potential of that asset
is important. The concept of CRM as a strategy reflects the business process and technology
that can be combined to optimize revenue, profitability and customer royalty.
The CRM market is evolving rapidly and is one of the fastest growing market segments in
application software .CRM has captured the mind share of senior executives across a variety
of industries. With a rapid growth of E-customer applications and the increasing need to sell to
and support customers through Internet, CRM solutions must provide a focal point for all the
customers- facing activities across the channels.
What is Customer Relationship Management?
 It is a comprehensive approach that provides seamless coordination between sales,

customer service, marketing and field support and other customer touching functions.
CRM integrates people, process and technology to maximize relationship with all
customers including e-customers, distribution channels and suppliers.
 It is customer focused business strategy designed to optimize revenue, profitability and
customer royalty. By implementing a CRM strategy, an organization can improve the
business processes and technology solutions around selling and marketing and
servicing functions across all customer touch – (for example: web, e-mail, phone, fax,
in- person).
A primary objective of CRM is to provide the entire organization with a complete, 360 –degree
view of the customer, no matter where the information resides or where the customer touch
point occurred. Today, many businesses manage different customer relationships with multiple
information systems, which weaken customer service and ultimate reduce total sales potential.
To realize the benefits of CRM, it is important to have an integrated solution across all
customers information systems, tying together the front and front offices for a complete view
of the customers in order to serve them better.
Why is it necessary?
Many companies are turning to customer relationship management systems to better

understand customer wants and needs.
CRM applications often used in combination with data warehousing e-commerce application
and call-centre, which allows companies to assess information about customers buying history,
preferences, complaints and other data so they can better anticipate what customer will want.
The goal is to install greater customer loyalty.
Other benefits include:
 The ability to provide faster response to customer inquiries.

 Increase efficiency through automation.
 Having a deeper knowledge of customers.
 Getting more marketing of cross selling opportunities.
 Identifying the most profitable customers.
 Receiving the customer feedback that leads to new and improved product and services.
 Doing One to One marketing.
WHY NOW?
What makes CRM appropriate for today’s environment? While there are many number of
environmental factors and business advancement that impact and enable the real importance
for CRM in today’s environment is competitive and differentiation. CRM promises to be
competitive and differentiation in today’s environment.
Organization today is finding it difficult to compete on the basis of product. Technology

advancement has enabled the near immediate replication of product features and functions. It
is just a matter of weeks between a product launch and saturation of the market. Just think
about it, are there many products out there that are truly unique?
Price, which has traditionally been another basis of competitive differentiation, is no longer a
means for many to compete. Complex channel networks have caused parity pricing.
Promotion strategies have similarly lessened as a means of differentiation. Clubs abound,

special offer are the norm, and sales are continual.
Place of distribution has likewise become less influential in the success or failure of a business.
The Internet has created an avenue for even the smallest business to compete.
While all these factors are still important, none of them can alone support the success of most
business. CRM –the ability to provide a more meaningful sales and service experience
promises to be means of differentiating, of providing customers with a reason to frequent your
business rather than that of your competitors.
Ownership of customer relationship provides exponentially greater rewards than differences in

product, price, promotion or place of distribution could ever offer. All of these factors can even
be mitigated if you can serve as the one stop provider that can identify. Quantify, and service
customer’s need.
Implementing CRM
If CRM involves optimizing product, price, place of distribution, promotion, sales and service,
why are so many companies struggling? Hasn’t anyone really mastered the art and science of
CRM, and if not, why is it so difficult?
CRM is difficult because it is an enterprise-wide initiative.
 CRM is not a technology initiative. Many have confused CRM as a technology

initiative, and assigned the CRM implementation project to their I.S or I.T group. CRM
conferences often equates to technology exhibits and demonstration. Technology is
needed in order to implement CRM, particularly the customization part but technology
is not the driver of CRM, or the solution to successful CRM implementation
 CRM is not exclusively a sales initiative. Similar to marketing, CRM is often lodged
within the sales department. The sales force, after all, is extremely close to their
customers, understanding their needs and wants, and trying to fulfill them. Sales,
however, is just one functional area that can benefit from CRM, and that is necessary
for effective CRM.
 CRM is not exclusively a marketing initiative. Many organizations have merely equated
CRM with customer-focused marketing, or data-driven/database marketing. CRM
requires marketing expertise. But CRM is not strictly a marketing initiative.
 CRM is not exclusively a service initiative. As with sales and marketing, customer
service is one functional aspect of successful CRM implementation. But customer
service is not the sole driver of the process.
CRM involves marketing, sales, service and technology, as well as the other inner workings of
an organization.
Thus it is properly described as an enterprise-wide initiative. It involves all the areas of the
organization and all the functions of the organization and it requires all areas of the organization
to be working together in harmony. CRM requires all areas of the organization to not only exist
in harmony, but to be working toward the common goal of stronger relationships.
IMPORTANCE OF CRM
Value of CRM to business
A CRM strategy is designed to increase revenue and profitability by attracting new customers,
growing customer business, increasing customer satisfaction and loyalty, enabling more
efficient business processes and utilizing lower cost technologies.
The primary goal of CRM is higher revenue, not cutting costs. A CRM solution improves sales
and marketing efforts and enables organizations to provide superior service to customers. New
customers are gained, and existing customers are retained and buy more in greater quantity.
And customer’s benefits are receiving superior customer service and getting the products and
services they want, when they want them.
An enterprise that does not have CRM strategy or use CRM applications is at a competitive
disadvantage.
Before engaging on a mission to implement a CRM strategy, it is critical to determine what the
specific objectives are and how to measure the return on investment.
There are sobering statistics that over one-half of CRM implementations ”fail”, primarily due
to lack of consensus on agreed –upon and more importantly, measurable goals. While
objectives can address specific points of poor performance-for examples low sales performance
or customer satisfaction scores-it is important that they also address supporting the entire
customer life cycle.
CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING
Banks Become Customer-Centric
The post-liberalized banking sector in India has been witnessing spectacular changes. The
major reasons for the recent radical changes in banking industry’s portfolio are competition,
consolidation, information technology and the need to be customer-centric.
Banks could improve the profitability by adopting strategies like market segmentation,
innovation, price bundling and relationship. Technology has a major role to play in retail
banking, but its role is complementary to customer service initiatives.
Due to increased financial market products like commercial paper and variety of financial
instruments, big corporate clientele of several commercial banks have shifted their loyalty, and
have been raising resources from the market directly and commercial banks have become more
retail customer-centric by offering wide range of services. Banks have identified new customer
segments like students, workingwomen, and high rich net worthy individuals.
CUSTOMER RELATIONSHIP PROFITABILITY
Regulated era has given assured profits to banks, but in the post deregulation period as margins
are falling down substantially, banks are concentrating on customer relationships. Banking
services can be divided into three categories: core services, facilitating services and supporting
services. Core service is the reason for being in the market. Facilitating services are needed so
that the core service can be used, and supporting services exactly discriminates the service
package from the services of competitors.
Customer relationship is the base on which the structure of retail banking will evolve. The cost
to develop customer relationship is always higher than the revenue,
But when the relationship grows new demands will appear and then the incremental revenue
would be higher than incremental costs.
The cost associated with building up of the relationship is huge. They are advertising costs,
price incentives, set up costs for accounts and service costs etc.
Customer service delivery is vital for the success of banking operations. This is not possible
only through technology. Process consistency within and across service channels is paramount.
Banks are increasingly making investment in a single type of process, rather investing in asset
of processes that depends on human resource policies.
Who are HNI Customers?
 They are High net worth individual customer.

 They are the major targets for private bankers.
 Bank provides premium class facilities to these clients and tries to cater their special
needs related to financial and non-financial in nature.
 They are high profile customers.
 They have income of above Rs.10 lakhs per annum.
 The customer who can maintain at least a very high amount in their accounts.
 Bank tries to maintain long-term relationship with these clients.
 HNI customers have a Relationship Manager.
How to approach HNI Customers: Approaching to prospective customer is very important

for any organization. If banks rightly approach customer then a long-term relation can be
expected. Followings are the steps how a bank approached to HNI customers.
DATA COLLECTION: Normally banks maintain their data bank, which is collected from
various sources like Credit Card holders, Different Account Holder’s Primary data, Yellow
pages, Directories.
TELE CALLING: Once the data is collected then the tele callers call upon to these contacts
and make the clients aware about various facilities provided by the banks. If the clients show
their inclination then a appointment is fixed with these clients and the Relationship managers
visit the clients.
ROLE OF RELATIONSHIP MANAGER: This appointment is called as a LEAD. This lead

is transferred to the relationship manager and the client is approached personally. Relationship
manager explain the facilities provided and take note to the clients’ additional needs which can
also be fulfilled by their services. If the client is convinced the lead converts in the customer
form.
CORPORATE BANKING: Relationship manager analyses the requirements of the

customers and provide the best-suited product. Relationship manager explains the various
investment options available in the market and give the customer the opportunity to select the
option, which is suitable to him.
PORTFOLIO MANAGEMENT: If the customer has invested then the role of the manager
is to design his portfolio keeping in mind the risk and return factors. Portfolio manager provide
these customer the requisite information about the investment opportunities available in the
market according to the profile of the customer.
HANDLING QUERIES: Frequent services and time to time updating of the market
circumstances are shared with these customers. The relationship manager with the help of other
officers clarifies their doubts and queries are handled with a special car
Mainly my work was to deal with HNI customers and to find out the interested potential
customers for opening the account in KMBL.I had convinced them to build a new and healthy
relationship by opening the account. Instead of covering all the areas, I have decided to cover
2 important sectors:
 Gem and Jewellery Industry

 Builders Industry (Real Estate)
 Local Businessmen
I have selected the first two sectors, as they are the booming sectors of market. These two
segments are my suspects. Suspects are those persons who might buy the product and who will
be ready to open the account in KMBL. Then I have determined the most likely prospects from
these suspects through tele calling and explaining about the features of account. /prospects are
those persons who are interested in opening the account. By opening the account and building
relationship, they have become the first-time customers. These three steps can be referred as
customer development Process, how you are creating the relationship with customers.
CURRENT ACCOUNT
Basically a current account is opened for artificially created entity. This artificially created
entity can be a firm, sole proprietorship, association, partnership or anything else. No interest
is paid on the current account. The bank charges some nominal amount for the transaction that
takes place.
Tools for opening of the Current accounts

 Walk in: - There was a huge number of walks in customers in KMBL, we use to open their
current accounts
 References: - References were being collected from the leads which we were having and
from other sources like Chartered Accountants, Relatives, Friends etc.
 Cold Calls: - This refers to the telephonic call, which we use to make; we use to take
appointment before approaching the person.
 Hot calls: - This refers to the direct face-to-face calls, which we use to make without taking
any prior appointments.
 Databases: - The various databases provided by the KMBL itself, which includes
directories, yellow pages, club directories, etc.
Procedure of opening of the account is as follows

 Preparing the proposal
 Meeting to the financial advisor of that office and giving him the proposal, telling him the
benefits, which the firm will be getting after opening its account in HSBC bank.
 Seeking permission of opening of account.
 Meeting to the owner of the firm/company
 Filling up the forms and completing the necessary Documentation.
KMBL and Current Account

HSBC Bank has various current accounts to match different needs of the businessman. All
these account are designed to suit the various need of the businessman.
Types of Current Account at KMBL

 Kotak Edge Current Account
 Kotak Pro Current Account
 Kotak Ace Current Account
KMBL and Savings Account

 Kotak Edge Current Account
 Kotak Pro Current Account
 Kotak Ace Current Account
Kotak Edge Current Account
Features
 Attractive Returns
 Business Advantages
 Convenience Banking.
Everyone needs a well-equipped bank account to keep pace with the business endeavors. Kotak
Mahindra Bank offers the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and
entire gamut of banking privileges, providing the extra edge to get ahead. The feature rich
Kotak Edge Current Account is the ideal way to make money work harder.
ATTRACTIVE RETURNS:
Kotak Edge Current Account combines liquidity of a Current account with the attractive returns
of a Term Deposits through the unique Kotak 2-Way Sweep.
KOTAK ADVANTAGES
Experience the ‘edge’ of business gains while banking through a host of advantages offered by
Kotak Edge Current Account.
Free Demand Drafts

Avail Demand Drafts, free of cost, payable at any of the branch locations, just by calling Phone
Banking services. There is no limit to the number/value of Demand Drafts drawn by the
customer at these locations
Free Home Banking

For free cash/demand draft delivery, dial phone banking service and enjoy time saving banking
experience from the comfort of home or office. The customer can also use the facility for free
cash/cheque pickup.
Free At par Cheques

Kotak Mahindra Bank’s At-par cheques are treated as ‘local clearing’ cheques across select
locations in the country. The At-par cheque facility comes to the customer free of charge. The
customer can now save DD making charges while enjoying the convenience of a cheque
Free Cheque Collections

Outstation cheques, drawn on any of the branch locations, would be collected ‘free of charge’
for the account holder. Only a nominal charge is levied for non-branch location.
Free Electronic Fund Transfer
Transfer funds to third party accounts in other banks, without drawing a Demand Draft or a
cheque, by using Electronic Transfer facility. With this facility, the accountholder can save on
Demand Draft making/couriering charges and also transfer funds faster.
Overdraft against Term Deposit

As a Kotak Edge Current accountholder, you can avail an overdraft against Term Deposit held
with KMBL. This facility helps effectively tackle short-term cash flow problems and since the
Term Deposits remains intact, the accountholder continue to earn interest on the investment.
CONVENIENCE BANKING
A host of convenience banking facilities allows the accountholder to access account anytime,
anywhere.
Global Debit Card

Access the account free of cost at 1000+ Kotak Mahindra Bank and HDFC Bank ATMs by
using the VISA Global Debit Card. The accountholder can also use Debit Card at all VISA
affiliated merchant establishments and ATMs worldwide.
Phone Banking
Dial 24 hour Toll Free number 1800 116022 (North India) OR (Rest of India) from anywhere
and customer Care Officer will help instantly with all banking requirements.
Net Banking
Just log on to “www.kotak.com” to access Net banking facility. Take advantage of the Internet
to bank from home, office or anywhere in the world at a time of convenience.
At-Home Services
This service enables the accountholder to make Utility Bill payments like electricity, telephone
and mobile phone bills and also get document delivery and pickup from the bank.
Mobile Banking
Use this service to access bank account anywhere, anytime. It is quick and easy, available to
the accountholder 24X7 and it’s absolutely free. The accountholder don’t have to pay any
charge to avail this service. The account holder can use Mobile Banking to check account
balance, last 3 transactions details, issued cheque status and request a cheque book. The
customer can use Alerts Service to get Alerts by SMS and/or email whenever the balance falls
below the Average Quarterly Balance or a Standing Instruction set by the account holder fails.
Eligibility Criteria
These current accounts are offered to Sole Proprietorships, Partnerships and Private
Limited Companies.
To be eligible
Edge Account customers need to maintain a minimum average quarterly balance of Rs.25000.
Non-maintenance of this balance invites a fee of Rs.750 per quarter.
Documentation Criteria
Account Opening Requirements:
 Completed Account Opening Form
 Passport size photograph of every signatory duly signed
 PAN card
 Address Proof document
 Identity card
Additional documents required:

Partnerships: Partnership Deed
Limited Company: Memorandum and Articles, Board Resolution,
Kotak Pro Current Account
Features
 Pro Privileges
Everyone needs a well-equipped bank account to keep pace with the business endeavors. Kotak
Mahindra Bank offers the Kotak Pro Current Account, armed with Kotak 2-Way Sweep and
entire gamut of banking privileges and ‘user friendly’ Convenience Banking facilities. The
feature rich Kotak Pro Current Account is the ideal way to make money work harder.
ATTRACTIVE RETURNS:
Kotak Pro Current Account combines liquidity of a Current account with the attractive returns
BUSINESS ADVANTAGES
The host of features offered by Kotak Pro Current Account makes money to work while
offering Convenient Banking experience.
Free Demand Drafts

customer at these locations. What’s more, the customer can avail free DDs upto a pre-specified
limit, at non-branch locations too.

Free Home Banking

cash/cheque pickup.
Free At par Cheques
customer can now save DD making charges while enjoying the convenience of a cheque.

PRO PRIVILAGE
Kotak Pro Savings account comes with special privileges that provide an extra fillip to banking
experience.
Family Savings Account

Kotak Pro Savings package entitles a Family Savings Account. This account comes with a host
of benefits like Kotak 2-Way Sweep, At-par cheque facility and other beneficial features. So
now, even dear ones of the accountholder can enjoy the banking.
Free Cheque Pick-up

The accountholder can avail the added benefit of a ‘free’ cheque pick up service. This service
enables to have cheques and documents picked up from the doorstep on a daily basis, helping
the accountholder to devote more time and energy to business
Free At-Home Services

and mobile phone bills and also get document delivery and pick up from the bank.
CONVENIENCE BANKING
anywhere.
Global Debit Card

Phone Banking
Net Banking
Just log on “www.kotak.com” to access “Net banking facility” . Take advantage of the Internet
to bank from home, office or anywhere in the world at a time of convenience.
Mobile Banking
below the Average Quarterly Balance or a Standing Instruction set by the account holder fails
or the accountholder can even ask for account balance to be sent on a daily basis or weekly
basis.
Limited Companies.
To be eligible
Pro Account customers need to maintain a minimum average quarterly balance of Rs.50000.
Non-maintenance of this balance invites a fee of Rs.750 per quarter.
 PAN card
 Identity card

Kotak Ace Current Account
Features
 Ace Privileges
ATTRACTIVE RETURNS:
Kotak Ace Current Account combines liquidity of a current account with the attractive returns
KOTAK ADVANTAGES
Ace current Account comes with a host of advantages that are aimed at providing superior
banking experience.
Free Demand Drafts
customer at these locations. What’s more, the customer can avail free DDs up to a pre-specified

Free Home Banking

For free cash/demand draft delivery, dial phone-banking service and enjoy time saving banking
cash/cheque pickup.
Free At par Cheques

Overdraft against Term Deposit

As a Kotak Ace Current accountholder, you can avail an overdraft against Term Deposit held
with KMBL. This facility helps effectively tackle short-term cash flow problems and since the
Term Deposits remains intact, the accountholder continue to earn interest on the investment.
ACE PRIVILAGES
Ace account has been designed with exclusive benefits that give an extra fillip to banking.
Free Cheque Pick-up

The accountholder can avail the added benefit of a ‘free’ cheque pick up service. This service
enables to have cheques and documents picked up from the doorstep on a daily basis, helping
the accountholder to devote more time and energy to business
Free Demat Account

As an Ace Current Account customer, the accountholder can open a Demat Account with Kotak
bank free of charge. Even the annual charges towards the Demat account are waived off.

Ace account allows extending the Kotak banking experience with 3 family savings accounts.
The family savings account comes with a host of benefits like Kotak 2-Way Sweep, At-par
Cheque facility and other attractive features.
Free Trading Account

Kotak Ace savings account customer can avail a ‘free Trading account with Kotak Securities,
giving access to online trading through Kotaksecurities.com. And with Payment Gateway
facility, the accountholder can pay trading bills online from bank account directly.
Free Investment Account
Avail a free investment account that provides a consolidated view of all the investments. The
Investment account statement gives a ‘single window view’ of Mutual Fund portfolio, listing
the NAV of each scheme invested into, current consolidated value of portfolio, and
realized/unrealized returns against each investment made.
Personal Investment Advisor

To identify and analyze the specific investment requirements, KMBL provide a dedicated
Personal Investment Advisor. This person alerts the customer of investment opportunities,
sends regular updates and feedback on the performance of the investments, helping for monitor,
manage and grow wealth in the ever fluid investment climate.
CONVENIENCE BANKING
anywhere.
Global Debit Card Free

Phone Banking
Net Banking
Just log on www.kotak.com to access Net banking facility. Take advantage of the Internet to
bank from home, office or anywhere in the world at a time of convenience.
At-Home Services
Mobile Banking
basis.
Limited Companies.
To be eligible
Ace Account customers need to maintain a minimum average quarterly balance of Rs.250000.
Non-maintenance of this balance invites a fee of Rs 750 per quarter.
 PAN card
 Identity card

List of Directors
Kotak Edge Savings Account
Features
 Kotak Advantages
Everyone needs a savings avenue that makes the most of their hard earned money. Kotak
Mahindra Bank offers the Kotak Edge savings Account, armed with Kotak 2-Way Sweep and
entire gamut of banking privileges. The feature rich Kotak Edge savings Account is the ideal
way to make money work harder.
ATTRACTIVE RETURNS:
Kotak Edge savings Account combines liquidity of a savings account with the attractive returns
2-Way Sweep
2-Way Sweep ensures that the money never stops working by linking the savings account to a
term deposit.
 Attractive Returns: Funds above a pre-set limit in the saving account are
automatically swept into a Term Deposit account in units of Rs 10,000 and invested for
a period of 181 days, allowing the customer to earn higher interest on the savings.
 Maximum Liquidity: Should cash withdrawals and cheques issued exceed the balance
in the savings account, KMBL make sure that the transactions are honored. KMBL do
that by sweeping the Term Deposits into the savings account in units of Rs 10000. And
then too, it takes care to transfer only the latest term deposits which ensure that the
interest loss is minimized. The remaining amount in the term deposit account continues
to earn higher interest at the original applicable rate. KMBL levy no penalty for
premature withdrawals from term deposits.
KOTAK ADVANTAGES
Experience the ‘edge’ while banking through a host of advantages offered by Kotak Edge
Savings Account.
Free Home Banking

cash/cheque pickup.
Free At par Cheques


CONVENIENCE BANKING
anywhere.
Global Debit Card

Phone Banking
Net Banking
At-Home Services
Mobile Banking
Kotak Pro Savings Account
Features
 Pro Privileges
Mahindra Bank offers the Kotak Pro savings Account, armed with Kotak 2-Way Sweep and
entire gamut of banking privileges and ‘user-friendly’ Convenience Banking facilities. The
feature rich Kotak Pro savings Account is the ideal way to make money work harder.
ATTRACTIVE RETURNS:
Kotak Pro Savings Account combines liquidity of a savings account with the attractive returns
KOTAK ADVANTAGES
The host of features offered by Kotak Pro Savings Account makes money to work while
offering Convenient Banking experience.
Free Home Banking

cash/cheque pickup.
Free At par Cheques

Free Demand Drafts
Banking services. There is no limit on the number/ value of DD’s drawn by the customers at
these locations. What’s more, the customer can avail free DDs up to a pre-specified limit, at
non-branch locations too.


PRO PRIVILAGE
Kotak Pro Savings account comes with special privileges that provide an extra fillip to banking
experience.

Kotak Pro Savings package entitles a Family Savings Account. This account comes with a host
of benefits like Kotak 2-Way Sweep, At-par cheque facility and other beneficial features. So
now, even dear ones of the accountholder can enjoy the banking.

CONVENIENCE BANKING
anywhere.
Global Debit Card

Phone Banking
Net Banking
Mobile Banking
Kotak Ace Savings Account
Features
 Ace Privileges
Mahindra Bank offers the Kotak Ace savings Account, armed with Kotak 2-Way Sweep and
entire gamut of banking privileges and ‘user-friendly’ Convenience Banking facilities. The
feature rich Kotak Ace savings Account is the ideal way to make money work harder
ATTRACTIVE RETURNS:
Kotak Ace savings Account combines liquidity of a savings account with the attractive returns
KOTAK ADVANTAGES
Ace savings Account comes with a host of advantages that are aimed at providing superior
banking experience.
Free Home Banking
cash/cheque pickup.
Free At par Cheques

Free Demand Drafts

customer at these locations. What’s more, the customer can avail free DDs up to a pre-specified



ACE PRIVILAGES
Ace account has been designed with exclusive benefits that give an extra fillip to banking.
Free Demat Account

As an Ace Savings Account customer, the accountholder can open a Demat Account with
Kotak bank free of charge. Even the annual charges towards the Demat account are waived off.
Ace account allows extending the Kotak banking experience with 3 family savings accounts.
The family savings account comes with a host of benefits like Kotak 2-Way Sweep, At-par
Cheque facility and other attractive features.
Free Trading Account

Kotak Ace savings account customer can avail a ‘free Trading account with Kotak Securities,
giving access to online trading through Kotaksecurities.com. And with Payment Gateway
facility, the accountholder can pay trading bills online from bank account directly.
Free Investment Account

Avail a free investment account that provides a consolidated view of all the investments. The
Investment account statement gives a ‘single window view’ of Mutual Fund portfolio, listing
the NAV of each scheme invested into, current consolidated value of portfolio, and
realized/unrealized returns against each investment made.
Personal Investment Advisor

To identify and analyze the specific investment requirements, KMBL provide a dedicated
Personal Investment Advisor. This person alerts the customer of investment opportunities,
sends regular updates and feedback on the performance of the investments, helping for monitor,
manage and grow wealth in the ever fluid investment climate.
CONVENIENCE BANKING
anywhere.
Global Debit Card Free

Phone Banking
Net Banking
Mobile Banking
basis.
FEATURES EDGE A/C PRO A/C ACE A/C
AQB 10000 20000 75000
Investment a/c Free Free Free
Add. Savings a/c Nil 1 a/c 3a/c
2-Way Sweep Above 20k Above40K Above150k
Home Banking Free Free Free
DD Charged Free up to Rs 5 lacs Free up to Rs 30 lacs

p.a p.a
Cheque Collections Free Free Free
Statements Quarterly Quarterly Monthly
Convenience Banking Free Free Free
At par Cheque Book Free Free Free
ATM cum Debit card Free for 1st yr Free for 1st yr. Free for life
Daily cash Limit 25K 25K 75K
Daily POS Limit 25K 25K 50K
Own/HDFC ATM’s Free Free Free
Visa Domestic ATM Charged Free Free

Visa International Charged Charged Free
ATM
Different Savings Account

FEATURES EDGE A/C PRO A/C ACE A/C
AQB 10000 20000 75000
Investment a/c Free Free Free
Add. Savings a/c Nil 1 a/c 3a/c
2-Way Sweep Above 20k Above40K Above150k
Home Banking Free Free Free
DD Charged Free up to Rs5 Free up to Rs30

lacs p.a lacs p.a
Cheque Collections Free Free Free
Statements Quarterly Quarterly Monthly
Convenience Free Free Free

Banking
At par Cheque Free Free Free

Book
ATM cum Debit Free for 1st yr Free for 1st yr. Free for life
card
Daily cash Limit 25K 25K 75K
Daily POS Limit 25K 25K 50K
Own/HDFC ATM’s Free Free Free

Visa Domestic Charged Free Free
ATM
Visa International Charged Charged Free

ATM
Different Current Accounts

Procedure Adopted for Opening the Account
Call up the prospective customer
Customer
Interested
Visit to the prospective customer
Customer Convinced
And Applies
Collect the necessary documents Deviations sent to the sales .Dept.
Documents Sent
to Sales. Dept .
Deviations Collection of further

Sales department check the documents required documents
Negative
File Rejected
Verification of Documents by Bank
SWOT ANALYSIS OF KMBL:
Strengths:
 Very fast growing bank of Rajasthan as well as of India.

 Track record of high growth and profitability.
 Strong financial background.
 One of the biggest financial institutions before converting into bank.
 Long experience of banking that is why it is called 25 years old new bank.
 Latest technology used by the bank.
 Free Home Banking transaction facility.
 Very good database maintained by the bank, i.e., Banking Customer Information Database.
Weaknesses:
 Low brand image.

 High average quarterly balance to be maintained by the costumer.
 Lack of coordination between different departments.
 Lack of costumer awareness regarding services and bank because of low
advertising.
Opportunities:
 Opportunities of entering into major cities of Rajasthan.

 Scope of more ATM networks.
 Opportunities to increase its customer base in liabilities section by marketing their products
on local television channels, canopy, hoardings.
Threats:
 Threats from nationalized banks.

 Threats from private bank like ICICI, UTI, HDFC because these banks open both savings
and current account at a very nominal amount with somewhat similar services
Limitations of Retail Banking
The bank into retailing will have to face following bottlenecks in its operations
 Huge sales and promotion expenditure
 Managing human resources
 Managing technology
 Pressure on margins
 Continuous follow-up
 Attitude hurdles
 Security problems
Huge Sales and Promotion Expenditure

In order to survive in the world of fierce competition with so many players, each bank has to
incur huge amount of funds on sales and promotion. No bank can deny this expenditure because
they need to build their image among the customers, to get business.
Managing Human Resources

Retail banking caters to the need of individual customers. For this purpose qualified and trained
staff is needed to be maintained. For training those employees, banks spend a huge amount of
money. Sometimes these trained personnel leave the job halfway which increases the
expenditure of the bank. Apart from this banks also have to maintain various cells regarding
customer grievance, employee grievance, etc. which again increases the expenditure of the
bank.
Managing Technology
Technology plays an important role in retail banking. Today majority of transactions in banks
are done through ATMs, Mobile banking, Phone banking, Internet banking. For this purpose it
is necessary effective and efficient management of technology. Maintaining technology incurs
huge expenditure, which sometimes create problem for the banks to accumulate funds for these
purposes.
Pressures on Margin
To retain the existing customer base as well as to expand, the banks are pressurized to keep the
minimum prices possible. Thus the banks have huge pressures on their margins.
Continuous Follow-up
In order to earn more profit banks are going for mass banking. But in this race the maintenance
of the customer base becomes very difficult. The problems like NPA’s and delay in payment
of usage changes occur which leads to losses for the banks. Thus the banks have to maintain
continuous follow-up programs, which require efficient technology, human resources as well
as surplus funds to control expenditure on such programs.
Attitude Hurdles
Earlier the major players in the banking industry were public sector banks. But due to the
advent of liberalization and globalization, private and foreign sectors banks have come up
which has resulted into a drastic change in the Indian Banking scenario. With these banks the
latest technology has also come up. But still a huge chunk of people does not avail itself with
the benefits. People still prefer going to banks and carry out the regular paper work when then
same thing can be done very easily through their mobile phones and internet. Thus people from
rural areas should be given proper information and should be educated and their attitude needs
to be changed, since it is a major hurdle for the growth of the retail banking products.
Security Problems
Retail banking products like net banking, phone and mobile banking and ATMs are solely
dependent on technology. If there is any problem in the network or a system as a whole, it
would result into huge losses for the banks as well as their customers. Therefore proper security
measures should be in place to secure customers’ date and identification codes.
“This study has helped me to know the whole functioning of one of the major pillars of our
economy which is Banks. With the Advent of Globalization and Liberalization new ways to
improve customer relationship have emerged in front of the banks. These new ideas will help
them in acquiring new customers and maintaining the existing customer base. One of the new
fast emerging tools with banks to improve up on customer retention and satisfaction is Retail
Banking and by adopting this many banks have achieved growth in their business like never
before
SUGGESTIONS & RECOMMENDATIONS:
 Kotak Mahindra Bank should chalk out some programs to create general awareness
regarding its presence and various services of the bank. More attention is required in distant
located firms and caters the needs of those commercial areas.
 Personal Marketing / Aggressive Marketing: Today is the era of competition. In order

to increase the banking network (in terms of clients and business volume) an aggressive
approach is required. The bank should recruit more number of marketing personnel, so that
they can cover the whole of the city. Personal marketing can be one of the methods or
modes of taking people into confidence.
 Promotional campaign: - In the era of such stringent competitiveness one has to take care
of promotional activities.
It can be done in following ways:
 Promotion Through Customers :
Through motivating the existing customers to get more business can be one
of the modes to have greater access or approachability. The motivation to
the customers can be through gifts or through any memento.
 Reference Selling:
Few of the Bank’s existing customers specially esteemed ones can be asked
to give references about relatives/ friends or any acquaintance that they
consider potential customer. Thus the business volume can be increased.
 Advertising: - Initially when we took our work we found that general awareness amongst
people regarding KMBL Bank was very low. The bank should instead of being centrally
advertised, try to advertise locally. This can be done in following ways: -
 Public welfare banners: - An excellent way to advertise which can be done through tree
guards having KMBL Bank’s name.
 Traffic posts especially at commercial locations can have boards of Bank.
 One or two Neon boards can be put at the center places of Udaipur.
 Ad Campaign through FM, Radio, Hoardings, and Television
 The bank should come up with more branches in other major cities of Rajasthan
 The bank should open more ATM networks.
 There should be Education training programmes for Sales Executives by KMBL.

 Processing time of opening an account should be reduced.
CUSTOMER RELATIONSHIP MANAGEMENT– PRINCIPLES
Nowadays banks have to work keeping in mind the position of the financial market and
anticipate change in the market place and prepare themselves accordingly. They have to make
new resolutions to build further on their own strengths to explore new avenues of customers
relationship management. This is the only strategic weapon to be pursued for excellence in the
pursuit of performance and achievement. Both the retention of old business as well as to search
for new business, CRM is the only choice. CRM, being the essence of modern banking, a sound
understanding of the key principles, its theories and practices should be revisited and redefined
to provide a road map to new ideas and techniques in the field. Over the years, banking
institutions have been feeling the pressing need of putting up greater thrust on this initiative for
improving their operations and appearances.
CRM Principles
The main principles of CRM can be grouped into seven guiding factors:
Customer Focus
The first and foremost important guiding principle in CRM is customer focus. The first question
that arises in this regard is to define the customer. This question is very fundamental. A
customer is a person or group of persons who receives the product or service—the final output
of a process or group of processes. A customer is the final arbiter of quality, value and price of
a product or service. A satisfied customer only assigns value to a service, on the contrary, to a
dissatisfied customer a product or service has no value, even if the concerned service or product
has been designed with lot of effort, energy and cost after a thorough planning. A satisfied
customer motivates his fellow members to go in for the service or product that he has already
acquired. But a disgruntled customer always counsels his friends, and fellow members not to
go to banks where his experience proved to be wrong bitter or other-wise. So customer’s delight
or customer’s satisfaction is the essence of any CRM program. As a part of this focus on
customers, banks should ensure that clients are identified; their requirements are determined,
understood and met duly enhancing customers’ satisfaction.
Leadership
Persuasion, judgment and decision-making abilities are the main attributes of quality
leadership. When there is a slight chance of getting a business but the client is hesitating or in
a fix, or not in a position to decide properly, it should be followed up by the relationship
manager by patient hearing, mild counseling and to
stand by the side of the prospective client to help clear his doubts and to make him feel happy
by realizing that he is going in the right direction and he is right in choosing his requirements.
The following points may be found helpful in this regard:
 It is to be communicated to all employees that all customers should be given a proper

hearing and it should be supported from all levels.
 Ways and means should be identified and practiced in getting and staying closer to
customers.
 Proper regard should be extended to the customers. All relevant information about
them should be collected from them with a humble and discrete approach. Proper value
should be given to their feedback.
 There should be proper re-action to the information and feedback provided by the
customers in designing, developing and providing desired products at afford-able cost.
Process Approach
A process transforms an input into desired output by the use of resources, energies and
time. In producing an output there may one single process or a group of inter-related
processes. In case of inter-related processes, often the output from one process directly
forms the input for the next. For effective functioning of an organization, it has to
identify and manage numerous linked activities with the help of different processes for
accomplishing its goal. Proper attention should be given to the following points: All
processes should be de-signed keeping in view the requirements and desires of the
customers, within the policy, resource availability, strategy of the company. All
processes should meet the legal and statutory requirements to perform the activity or
deliver the product or service. Time involved in processing should be less with least
waiting time for the customers. If required delegation of authority and assignment of
account- ability at various executive levels should be addressed, they should be revised
and fine-tuned to meet the requirements. All the processes should be properly integrated
to meet the goal of congruence and should not function at cross-purpose and There
should be in built control mechanism for ease of measuring, reviewing and taking
corrective action.
System Approach
Customer’s requirement is one level of commitment. That level implies a system that is reactive
and provides customers what they want but the target should be to achieve more and to exceed
the customer’s expectation to accommodate their future requirements and to build a cushion
against the competitors’ attributes. CRM denotes the management of the entire system and is
not confined to only one or the other sub-systems or functional departments. CRM is based on
a system approach to management. Its primary objective is to increase value to customers on a
continuous basis by designing and improving organizational processes and systems on an
ongoing basis. Meeting each sub-system may have its own goal but the goal and objectives of
all sub-systems are to be integrated to achieve the overall goal.
There may be one sub-system to acknowledge the customer’s order, a separate one to deliver
the product within the delivery schedule, another sub-system to comply with the complaints of
the customers etc, but all directed to accomplish the goal—value to the customers. The total
system as a whole should decide on the product to be manufactured, the services to be offered,
the quality to be imbedded , the price to be fixed , markets and customers to targeted upon and
similar other issues.
Involvement of People
The fundamentals of CRM bear the genes of customer relationship through involvement of
people, i.e., the work-force at the disposal of the organization. The whole gamut of CRM is for
the people, of the people and by the people. People’s involvement at all levels is essential for
the success of a CRM program. The bank managers and staff must be in a position to exploit
the concept of customer relationship completely. Customer relation may be defined as that
dimension of relationship marketing that seeks and ensures customer loyalty by fulfilling
promises and continuing to satisfy customer’s wants and needs so that defection is zero. It
comprises of three levels of; financial, social and structural relationships
The main focus of financial relationship is frequency marketing programs based on financial
incentives such as reduction of processing fees, lower rate of commitment charges,
organization of loan mela on special occasions and the like. A social relationship program
revolves round a social bonding between company and its customers and establishes brand
loyalty. Bankers, nowadays, make house calls, offer different services outside their formal
activities, share the feelings and emotions of clients and even send clients bouquets on
birthdays and anniversaries. A marketing relation with the middleman and interested groups is
developed in an in-side-out manner mainly based on software, which would help in data
warehousing, data mining and data analysis. The optimization of structural relationship lies in
the replacement of physical resources by total service replacement. Drawing of money through
ATMs instead of physical presence in the branch for withdrawal of cash through cheques or
withdrawal forms may be cited as an example. To obtain the full benefits of people
involvement, the human resource management should focus on employee empowerment,
productivity linked reward, and zero defeat service oriented training and total quality
management.
Mutually Beneficial Customer Relationship
The relationship with the customer should be based on a mutually beneficial relationship. A
bank should not concentrate its attention towards earning of profits only, but focus should be
directed to the customers’ wealth creation or value enhancement with the motto of earning
through service. As an example we can talk of a savings account that’s ‘fixed up’ to give a
customer more interest. It ensures that any balance in your savings account above a certain
amount, say, Rs 3,000 automatically gets transferred to a fixed deposit to give you higher
returns, which will be swept back into your savings account, when you need it.
Sometimes, other benefits are also extended, such as, free personal accident insurance coverage
along with fixed deposit scheme above a certain amount and above a certain term. Banks are
no more restricting their activities to deposit and advances; rather they work with the motto of
offering ‘integrated total package solutions’ to all needs of a customer. Banks have gone to the
extent of booking cinema tickets, paying utility bills, school fees etc. for the ease of their clients
who are very busy and do not find time for such works. Many of such activities are not
profitable in terms of time and efforts spent by the bank. But banks are carrying out such
services for mutual benefits, which pays in the long run.
Wealthy individuals are in the habit of placing all sorts of demands on their private bankers
and a bank has to respond to such requests not merely for income generation but as a gesture
of goodwill and at times such activities add a considerable percentage to a bank’s fee based
income. According to an estimate, a bank can earn Rs 35,000 to Rs 100,000 per an-num for a
good customer. But generally it is found that earnings start after the first two- three years of
dealing with the customer. In a mature relationship, such fee-based income is a regular feature
and is very much crucial in today’s banking where interest spread is getting reduced due to
competition and fee based income can increase the bottom line. But in many instances, the
expenses in terms of time, effort, recognizing individual needs and offering a customized
investment solution are high. Retention of customers and building a long lasting relationship
is the main criteria under this concept.
Continuing Improvement
Another objective of CRM is the efforts towards continuous improvement in the customer
relationship through the provision of value added services at a favorable cost. Business
processes in the areas of finance, system integration, human resource management etc are to
be automated and optimized with an aim to increase the efficiency and effectiveness of
operations.
The most effective way of improvement lies in innovation and change management. Today’s
successful organizations must stimulate and foster innovation and master the art of change.
Organizations that maintain their flexibility, spontaneity and unpredictability, continually
improve their quality and beat their competitors in the market place with a constant stream of
innovative products and services. They will be the winners.
The major areas to be targeted are:
 Improving the effectiveness of marketing.

 Implementing multichannel trigger driven marketing
 Implementing a strategic analysis capability to support strategic decision making and
 the ability to deliver the increasing levels service demanded by customers.
Also building a transparent communication system and employee participation to better

define the needs of the customers and deliver the right services and products are equally
important.
BENEFITS OF CRM
Despite the fact that in most banks sometimes fail to get profits, they seldom pay attention to
or adopt any customer strategy. It has long been the misconception that banks need not pay
much attention to customer focus just because they had customers. Some banks even if they
possess good customer relationships are unable to cross sell as they have not figured out the
product or service with which to target the customers. They also are unaware of what may
happen when customers are often approached with the wrong products. However the new
millennium has resulted in banks and financial agencies rethinking their strategies and goals.
They have come to understand the importance of banking on to the customer and keeping him
happy. The rules that once governed the banking industry have changed. They have realized
that adopting a customer centric strategy is essential and needs to be compulsorily undertaken.
The vast majority of banks now realize that they need a customer strategy and are opting for
CRM. Banking CRM software serves to increase the market share and boost growth in the
banking industry. CRM banking solutions change the way the employees think and mould them
into customer conscious people. CRM induces bankers to know that they are required to
maintain good relationships with their customers and should strive to retain them. They are
made to realize that the business process should consist of efforts to discover and satisfy
customer requirements. Since the banking field now boasts of so much of technological
innovations there has been a wide variety of innovations in CRM banking as well. Statistics
show that bankers will bear staggering expenditure on CRM. The sector will also evidence an
increase in expenditure of 14 percent each year. With such phenomenal statistics it is but a
surety that with CRM, banking solutions sales will improve in the coming years.
Benefits of CRM for Banks
Focus on the Customer
CRM manages to place the customer at the focal point of the organization in order to cater to
his needs, satisfy him and thus maximize its profits. CRM understands the needs of the
customer and integrates it with people, technology, resources and business processes. It focuses
on the existing data available in the organization and uses it to improve its relationship with
the customers. Banking CRM uses information and analytical tools to secure customer focus.
Thus it is completely essential that banks implement CRM in order to secure maximum gain
all-round.
Overall Profitability
CRM enables banks to give employee's better training that helps them handle customers easily.
It achieves better infrastructure and ultimately contributes to better overall performance. The
byproducts of CRM banking solutions are customer acquisition, retention and profitability.
Banks that don't implement CRM will undoubtedly find themselves with lesser profitability
coupled with a sharp decline in the number of customers.
Satisfied Customers
It is important to make a customer feel as if he / she is the only one customer in the bank. This
will go a long way in satisfying and retaining them. Bankers need a return on investment and
it has been proved that increase in customer satisfaction more than contributes a fair share to
ROI. The main value of CRM banking lies in satisfaction and increased retention of customers.
Centralized Information
CRM banking solutions manage to clearly integrate people, processes and technology. CRM
banking provides banks with a holistic view of all bank transactions and customer information
as well and stores it in a single data warehouse where it can be studied later.
CRM Banking Boosts Small Banks
Banking CRM software meets the needs of banks of all sizes in terms of attaining the required
accuracy and understanding of customers. Merely assuming that banks that are considerably
smaller in size have a better customer approach and are able to deal with their customers in a
better manner is wrong. They are just as much in need of CRM aid as the others. Small banks
on account of a limited amount of money have had to realize that a large contribution to profits
is directly the result of good customer service. CRM makes sure that the bank delivers exactly
what the customer expects.
Customer Segregation
CRM enables a bank to see which customers are costing them and which are bringing benefits.
CRM provides them with the required analytical tools that will help them focus on the
importance of segregating these two and doing what is required to avail of the maximum
returns. After this segregation is done CRM easily enables banks to increase their
communication and cross-selling to their customers effectively and efficiently.
Aggressive Customer Acquisition
CRM solution supports the creation of demand generation through multichannel and multi-
wave campaigns. The solution ensures that the bank’s marketing message is appropriately
personalized and targeted towards the most suitable segment of prospects. This optimizes
marketing efforts and results in greater conversion of prospects.
Improved Cross-selling Framework
The solution presents a unified 360° view of the customer, allowing single point access to all
the relationships the customer has forged with the bank. This along with robust customer
analysis effectively supports true relationship banking, providing a robust framework for cross-
selling opportunities. CRM solution also integrates with other white labeled solutions to
facilitate contextual and personalized customer engagement, with a keen focus on right-talk
driven right-sell.
Increased Operational Efficiencies and Collaboration
CRM solution supports business automation for processes and business activities, eliminating
manual tasks and reducing process time. Straight through processing abilities enhance
reduction in turnaround and processing time, increasing output and enabling speedy completion
of tasks. The multilingual web-based single repository of information enables remotely located
bankers to collaborate and transact seamlessly.
Lower Total Cost of Ownership (TCO)
A web-based solution leveraging new-generation technologies, Finacle CRM solution is

future-proof and can be seamlessly integrated with other enterprise applications. With a robust
architecture and proven scalability, it ensures protection for the bank’s technology investments.
Campaign Management
Banks need to identify customers, tailor products and services to meet their needs and sell these
products to them. CRM achieves this through campaign management by analyzing data from
banks internal applications or by importing data from external applications to evaluate
customer profitability and designing comprehensive customer profiles in terms of individual
lifestyle preferences, income levels and other related criteria. Based on these profiles, banks
can identify the most prospective customers and customer segments, and execute targeted,
personalized multi-channel marketing campaigns to reach these customers and maximize the
lifetime value of those relationships.
Customer Information Consolidation
Instead of customer information being stored in product centric silos, with CRM the
information is stored in a customer centric manner covering all the products of the bank. CRM
integrates various channels to deliver a host of services to customers, while aiding the
functioning of the bank.
Marketing Encyclopedia
It is the central repository for products, pricing and competitive information, as well as internal
training material, sales presentations, proposal templates and marketing collateral.
360-degree View of Company
This means whoever the bank speaks to, irrespective of whether the communication is from
sales, finance or support, the bank is aware of the interaction. Removal of inconsistencies of
data makes the client interaction processes smooth and efficient, thus leading to enhanced
customer satisfaction
Personalized Sales Home Page
CRM can provide a single view where sales mangers and agents can get all the most up-to-date
information in one place, including opportunity, account, news, and expense report
information. This would make sales decision fast and consistent.
Lead and Opportunity Management
These enable organizations to effectively manage leads and opportunities and track the leads
through deal closure, the required follow-up and interaction with the prospects.
Operational Inefficiency Removal
CRM can help in strategy formulation to eliminate current operational inefficiencies. An

effective CRM solution supports all channels of customer interaction including telephone, fax,
e-mail, the online portals, wireless devices, ATMs, and face-to-face contacts with bank
personnel. It also links these customer touch points to an operations center and connects the
operations center with the relevant internal and external business partners.
CRM with Business Intelligence
Banks need to analyze the performance of customer relationships, uncover trends in customer
behavior, and understand the true business value of their customers. CRM with business
intelligence allows banks to assess customer segments, which help them calculate the net
present value (NPV) of a customer segment over a given period to derive customer lifetime
value. Customers can be evaluated within a scoring framework. Combining the behavior key
figure and frequency to monetary acquisition analysis with a marketing revenue quota can
optimize acquisition costs and cut the number of inefficient activities. With such a knowledge,
banks can efficiently allocate resources to the most profitable customers and reengineer the
unprofitable ones. Data warehousing solutions have been implemented in Citibank, Reserve
Bank of India, State Bank of India, IDBI, ICICI, Max Touch, ACC, National Stock Exchange
and PepsiCo. Business Intelligence players hope many more will follow suit.
Benefits of CRM to Customers

Customer relationships are becoming even more important for banks as market conditions get
harder. Competition is increasing, margins are eroding, customers are becoming more
demanding and the life-cycles of products and services are shortening dramatically. All these
forces make it necessary for banks to intensify the relationship with their customers and offer
them the services they need via the channels they prefer.
CRM – Benefits to Customers
 Service provisioning throughout the entire life cycle of the corporate customer, from
the initial stages to the establishment of a close, long-term relationship with profitable
clients,
 Optimization of the use of bank resources, such as alternative channels of distribution
(internet and home banking),
 Significant reduction in and limitation of operational costs through system automation
and standardization,
 Low maintenance and expansion costs owing to the use of modern administration tools
which allow bank employees to make a wide range of modifications to the system
 CRM permits businesses to leverage information from their databases to achieve
customer retention and to cross-sell new products and services to existing customers.
 Companies that implement CRM make better relationships with their customers,
achieve loyal customers and a substantial pay back, increased revenue and reduced cost.
 CRM when successfully deployed can have a dramatic effect on bottom-line

performance. For example, Lowe’s Home Improvement Warehouse, in a span of 18
months, achieved a 265 percent return on investment (ROI) on its $ 11m CRM
investment.
 According to a study conducted in the sector of banking, convenience of location,
price, recommendations from others and advertising are not important selection criteria
for banks. From customers’ point of view, the important criteria are: account and
transaction accuracy and carefulness, efficiency in correcting mistakes and friendliness
and helpfulness of personnel. Thus, CRM, high-quality attributes of the product /
service and differentiation proved to be the most important factors for customers.
 Another study conducted in a European bank shows that with CRM, the bank was able
to focus on profitable clients through efficient segmentation according to individual
behavior. Information about ‘who buys what and how much’ enabled the bank to have
a commercial approach based on the client and not solely on the product. Thus, the bank
was able to better satisfy and retain its customers.
Eventually, CRM results both in higher revenues and lower costs, making companies
more effective and efficient: effective in targeting the right customer base with the right
services via the right channels, and they are efficient in doing this at the lowest costs.
For example, those banks that are moving transactions from the more expensive
channels to less costly channels – like the call centre or Internet– are therefore able to
save money.
Treating Accounts as Customer
Traditionally banks have closely associated customers with accounts, to the point of calling the
account the customer and vice versa. Customers will tend to feel alienated when they are treated
like a number instead of a person. A conventional account structure usually contains very little
information about customers and their needs, or their relationship with competitors or other
divisions within the bank. The banks in the forefront have excellent reasons to adopt
comprehensive CRM strategies to cultivate a lifetime customer relationship. As banks move
from transaction-centric to a relationship-centric business approach, effective leveraging of
customer relationship becomes all the more critical.
Today, customers are expecting even more individual attention, responsiveness and product
customization, yet are unwilling to pay a premium for these services. They are willing,
however, to build a long-term relationship with banks that offers differentiated and more
personalized services. This is where electronic banking can offer a competitive advantage.
Successful CRM implementation in electronic banking needs to integrate data from all
customer touch points, employee feedback and even shareholders' perceptions. If used
effectively and in an innovative way, this approach will enable banks to develop a strategy to
deliver to the customer the most appropriate products and services.
Bibliography
R, K. C., & V. P. (1990). Research Methodology (Vol. Second Edition). New Delhi.
P. K. (1991). MARKETING MANAGEMENT. NEW DELHI: PRANTICE- HALL OF INDIA.
Sabharwal, & y, M. p. (2014/04/01). Indian Banks: The adoption of CRM program to encourage use
of e- banking & obtain customer feedback regarding Quality of IT related services . Research
Journal of science and IT management, 3.
http://www.kotak.com
http://www.google.co.in
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CUSTOMER RELATIONSHIP MANAGEMENT - MBA642BM

KOTAK MAHINDRA BANK

Submitted in partial fulfilment of the requirements

ADISHESHA SAIRAM 1827901

ASHUTOSH PATKI 1827906

AYUSH JAISWAL 1827907

GARLAPATI NIKHITHA 1827941

LIZA CHETRI 1827944

MANISHA AMERIYA 1827945

Under the Guidance of

CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru

 Issuing Demand Draft and Travelers Cheques

 Banking Regulation Act, 1949

KOTAK MAHINDRA GROUP:

THE JOURNEY SO FAR...

1991 The Investment Banking Division is started.

The Company's newly established Foreign Exchange Risk Management Service

- Additional 30,000 debentures to promoters, directors, etc., 9,500 debentures to

- As per the terms of debenture issue, a portion of Rs 45 of each debenture of Rs 90

- The Company issued through a Prospectus 4400000 No. of equity shares of Rs 10

1995 Brokerage and Distribution businesses incorporated into a separate company -

Investment Banking division incorporated into a separate company - Kotak Mahindra

Kotak Mahindra Capital company became a subsidiary of the Company

The Company's public issue of 400000 16-17% Secured Redeemable Non-

Mr. K.K. Sheth has resigned effective from May 8.

2002 Matrix sold to Friday Corporation

KMFL has raised 76.22cr by selling securitized commercial vehicle loans to

Kotak Mahindra Finance Ltd has mobilized Rs.10489cr , asset-backed securitization

Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak Mahindra Capital

Kotak Mahindra Bank sets up branch in Surat

Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an open-ended

Kotak Mahindra Bank inks pact with Reuters

2005 Kotak group realigns joint venture in ford credit.

Kotak Bank join hands with IndianNGOs.com

Kotak Mahindra Bank invests Rs 25 cr in BFW

Kotak Mahindra to buy out Goldman Sachs' stake in JVs

Kotak Mahindra Bank sets up branch in Valsad

Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio

Kotak Mahindra Bank Launches Salary 2 Wealth

Kotak Mahindra Bank Launches Kotak Gold Debit Card

Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of IT Returns

Kotak Mahindra Finance is a joint venture with Goldman Sachs.

- Kotak Mahindra Bank launched credit cards for its customers.

 The most preferred employer in financial services: A culture of empowerment and

KEY GROUP COMPANIES AND THEIR BUSINESSES:

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra

About Kotak Mahindra Bank:

The complete bank:

MAIN RETAIL BANKING SERVICES:

CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is developing into a major element of

What is Customer Relationship Management?

 It is a comprehensive approach that provides seamless coordination between sales,

Many companies are turning to customer relationship management systems to better

Other benefits include:

 The ability to provide faster response to customer inquiries.

Organization today is finding it difficult to compete on the basis of product. Technology

Promotion strategies have similarly lessened as a means of differentiation. Clubs abound,

Ownership of customer relationship provides exponentially greater rewards than differences in

CRM is difficult because it is an enterprise-wide initiative.

 CRM is not a technology initiative. Many have confused CRM as a technology

Value of CRM to business

Banks Become Customer-Centric