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PROJECT REPORT ON
A COMPARITIVE ANALYSIS OF
DIFFERENT PRODUCT AND
MARKETING STRATEGIES OF KOTAK
MAHINDRA BANK W.R.T OTHER BANKS
PREFACE
Finally I am glad to thank our all faculties who have provided me substantial
guidance & support in preparation of this project. This successful completion
of this project could not have been possible without their co-operation and
support.
EXECUTIVE SUMMARY
T h e p r oj e c t i s b a s e d o n t h e s a l e s s t r a t e g i e s f or t h e
B a n k i n g p r o d u c t s w i t h a s p e c i a l r e f er e n c e t o K O TA K
MAHINDRA BANK and the consumer perception about
the same.
First and Foremost, the purpose of Kotak Mahindra
B a n k i s t o f u l f i l l t h e n e e d s f or i n v e s t m e n t u n d er o n e
r o of .
T h i s pr o j e c t s h o w s , t h e c o m m o n m a n h a s s t a r t e d
capital market term like bull and bear explode new
time.
I t g i v e s t h e d e t a i l vi e w of t h e r e g u l a t o r y f r a m e w o r k
f or t h e K o t a k M a h i n d r a B a n k
The focus shift t o v a r i o u s pr o d u c t s o f K O TA K
MAHINDRA BANK to cater to the needs such as
return explanation, financial position, risk tolerance,
etc.
The next phase look up the investment in growth
oriented stock which are available at attractive
relative valuation.
F u r t h er t o t h i s , pr o j e c t p r o c e e d s w i t h t h e r e s e a r c h
d e s i g n e d i n t h e l i g h t of t h e c o r e o b j e c t i v e s o f t h e s t u d y
a l o n g w i t h t h e s u b o b j e c t i v e s t h a t ar e g i v e n d u e
consideration throughout the research. It also enlists all
the data sources as to by which means the study has
gained momentum. The data has been collected by
v i r t u e of q u e s t i o n n a i r e s a n d w e b s i t e s , r e s p e c t i v e l y. T h e
scope of the study is suggested in favor of the
c o m p a n i e s s t r i v i n g t o e m e rg e a s s u p e r p o w e r s dr a w n
o u t b y t h e s u r v e y. T h e s e c o m p a n i e s c a n f i n e t u n e t h e i r
p r o s p e c t i v e o n e s a n d c a n gr a b t h e o p p or t u n i t i e s o f t h e
t r a n s f o r m i n g t h e w e a k n e s s of o t h er i n t o t h e i r o w n
strength.
RESEARCH OBJECTIVES
Various Objectives for conducting the research and analysis are listed as
under:
Access the Market Potential of Kotak Mahindra Bank Saving Account with
the help of a survey conducted on a total of 50 Respondents .
Study how new distribution channels such as Internet Banking, ATM facility,
Phone Banking have changed the face of the Banking industry.
Compare the services offered by Kotak Mahindra Bank and the customer’s
satisfaction level of the same with that of other Banks in the Private sector,
and to access where the Bank has to improve.
This study helps in finding out the satisfaction of most important resource
that is human resource in Kotak Mahindra Bank.
This also helps in finding the effect ness of human resource policies in
organization.
The study provides knowledge of various products& investment services
of Kotak Mahindra Bank
The study helps to learn of work culture of organization.
The study of also helps to learn what as the various benefits available to
the advisor in an organization.
The study also helps the company to be aware of important that it’s has to
make in its incentives plan.
LIMITATIONS
The study could not be made that comprehensive due to time constraints.
Some customers feel uncomfortable to reveal some personal information
relating to income etc. it might have happened that some more essential
information could have been collected.
Time constraint.
Biases and non-cooperation of the respondents.
Financial constraint.
Geographical selectivity in study limiting to Delhi city only.
INDUSTRY PROFILE
among them. Today, there are 27 private sector banks in the banking
sector: 19 old private sector banks and 8 new private sector banks.
SECTOR BANKS.
The country’s middle class accounts for over 320 million people.
number of large players that can compete globally rather than having
Finance Limited. Since then it's been a steady and confident journey to
growth and success.
COMPANY’S PROFILE
Established in 1984, The Kotak Mahindra Group has long been one of
India’s most reputed financial organizations. In Feb 2003, Kotak Mahindra
Finance Ltd., the group’s flagship company was given the license to carry on
banking business by the Reserve Bank of India (RBI).This approval creates
banking history since Kotak Mahindra Finance Ltd is the first company in
India to convert to a bank. The license authorizing the bank to carry on
banking business has been obtained from the RBI in tune with Section 22 of
the Banking Regulation Act 1949.
KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and
Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management
Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement
of Business on 11th Feb 1986.
The bank customers have access to entire VISA network of 4500 ATM’S in
India and 800000ATM’S worldwide accepted in more than 56000
establishments across India and 10 million worldwide. The customer also
has access to over 800 ATM’s with sharing arrangements with UTI BANK,
of these 125 are in the NCR.
Key group companies and their businesses
Kotak Securities
Product Detail
K o t a k M a h i n d r a B a n k i s o n e o f t h e p r o m i n e n t s u b s i d i a r i e s of
K o t a k M a h i n d r a gr o u p . T h e a c t i v i t i e s of t h e c o m p a n y b e i n g
p a r a l l e l t o i t s o b j e c t i v e ar e v er y w i d e a n d c o v e r a l l t h e
c o m p o n e n t s o f a B a n k . T h e B a s i c a r e a of O p e r a t i o n s i s t h e
B a n k i n g b u s i n e s s , o t h e r pr o d u c t s a r e m e a n t f or t h e r e g u l a r
revenue generation. Being a Banking house, the company is
in regular touch with Banking Accounts, I n v e s t m e nt
Services, Convenience Banking and Other Services.
They offer complete solutions that address all your financial requirements,
whether you're an individual or a firm. From everyday banking to long term
investments — their offering covers it all. This wide range of products is
delivered to you with a genuine understanding of your specific need and
warm, personalised service.
Kotak Mahindra Bank, it's not about selling you many different products —
it's about working out a holistic, pragmatic solution that addresses your
financial needs. Through their varied products,they commit themselves to
becoming “banker” to the customer rather than being “asset financier” to our
customers.
Banking Accounts
Savings Account
Current Account
Term Deposit
SAVINGS ACCOUNT
“Choose from our range of Savings Accounts”
Thus the three account opening options in savings account are as mentioned
above:
EDGE SAVINGS ACCOUNT: Kotak Mahindra Bank´s Edge
Savings Account is a complete financial package customized to suit
individual banking needs. Its constant endeavour is to enable regular
financial transactions through online platform so that most of
payments can be made directly through your account or card.
Wide ATM access through the Kotak Mahindra Bank Debit Card
One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or
enquire balance at no extra charge!
Use the free Payment Gateway to make online payments for utility bills,
credit cards, online trading of shares or even online shopping.
Quick and easy funds transfer
Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque book
so that money from account is received by the beneficiary in the fastest
possible time.
One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting your
Bank Account. Besides this you get a consolidated view of all your mutual
fund investments across schemes with updated returns status, latest NAV
information and research reports.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into your
account to meet fund requirements when your withdrawals exceed the
balance available in your account, thereby providing you maximum
liquidity.
PRO SAVINGS ACCOUNT:
Walk into any VISA ATM in India to check balance or withdraw cash
absolutely free. no longer have to worry about locating your Bank or Partner
Bank ATM – Use the first VISA ATM that you spot, for cash withdrawal or
balance enquiry transactions.
One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting
bank account. Besides this get a consolidated view of all the mutual fund
investments across schemes with updated returns status, latest NAV
information and research reports.
Use our free Payment Gateway to make online payments for utility bills,
credit cards, online trading of shares or even online shopping.
Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque book
so that money from account is received by the beneficiary in the fastest
possible time
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into your
account to meet fund requirements when your withdrawals exceed the
balance available in your account, thereby providing you maximum
liquidity.
You get a one point contact for all your banking related queries and
transactions. Your relationship manager will also help you with financial
planning and sound investment decisions.
Free banking transactions
You can issue demand drafts or send cheques for collection on branch
locations without any charge to your account.
No longer have to worry about locating your Bank or Partner Bank ATM -
Use the first VISA ATM that you spot, for free cash withdrawal or balance
enquiry transactions. So walk into any VISA ATM in India or abroad to
withdraw cash or for balance enquiry.
Use the free Kotak Payment Gateway to make online payments for utility
bills, credit cards, online trading of shares or even online shopping. All this
at the click of a mouse!
One can issue demand drafts or send cheques for collection at all branches
for no extra charge.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into account
to meet fund requirements when withdrawals exceed the balance available in
the account, thereby providing maximum liquidity.
CURRENT ACCOUNT
Kotak Mahindra Bank offers unparalleled advantages with its three Current
Account offerings. Whether small/ mid size business or an enterprise spread
across multiple locations in the country, would find a Current Account that's
just designed for you. These Current accounts offer attractive returns along
with personalized banking services at three convenient average quarterly
balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS
ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at
Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly
balance levels as well the corresponding services and benefits try to ensure
the various customer needs and requirements. With features ranging from
Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free
Trading Account & free Demat Account, and more!
Thus the three account opening options in savings account are as mentioned
above:
In need of a well equipped bank account to keep pace in all the business
endeavors. They offer the Kotak Edge Current Account, armed with Kotak
2-Way Sweep and the entire gamut of Banking Privileges, providing that
extra edge to get ahead. The feature rich Kotak Edge Current Account is the
ideal way to make money work harder.
Kotak 2-Way Sweep ensures that money never stops working for you. Daily
balances, above a threshold level, in Current Account are automatically
swept out into Term Deposits (TD). This 'swept out amount' is brought back
into account to meet fund requirements when withdrawals exceed the
balance available in the account (or when the account balance goes below
the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin
advantages of attractive returns & maximum liquidity.
Free Demand Drafts and Pay Orders
Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra
Bank Branch location in India.
At-par Cheques
Get free At-par Cheques that are treated as 'local clearing' cheques across all
branch locations. All these at nominal costs.
Cheque Collection
All Outstation cheques, drawn on any of branch locations, are collected 'at
nominal charge' for you. The strong network of correspondent banks enables
us to collect cheques from 1600 locations across India at faster speed and
minimal cost
Our Mobile Banking & Alerts service enables to access bank account on
Mobile Phone. One can access all your standing instructions (SI), any large
credits or debits, available balance, balance below AQB, any SI failure and
SIs successfully executed will be intimated to you via SMS
Pro Current account
You need a well equipped bank account to keep pace with you in the ever
changing business scenario. We offer you the Kotak Pro Current
Account, armed with Kotak 2-Way Sweep, as well as an entire gamut
of Banking Privileges and 'user-friendly' Convenience Banking
facilities. The feature rich Kotak Pro Current Account is the ideal way
to make your money work harder.
Key Features
Dedicated Relationship Manager
Free Demand Drafts & Pay Orders>
Free At Home Services
Better Forex rates and Efficient Trade Services
ACE Current Account
In the need of a well equipped bank account to keep pace with you in the
ever changing business scenario. They offer you the Kotak Ace Current
Account, armed with Business benefits and exclusive Ace Privileges and an
entire gamut of banking conveniences especially designed for you. The
feature rich Kotak Ace Account is the ideal way to make money work harder
Term Deposits
Key Features
Ease and convenience of operation
Liquidity through overdraft or sweep-in facility
No penalty on pre-mature encashment
Nomination facility available
Give your portfolio stability of returns and safety and liquidity. Invest in
Kotak Bank Term Deposit. It offer attractive returns on term deposits and
investing in them is really simple and convenient.
For the first time in India, New to Bank customer can also apply online for
term deposit.
One can avail this facility for each & every account that open with us i.e.
nominate different persons for different term deposit accounts can choose to
change the nominee through a declaration in the appropriate form to revise
the nomination during the term of the deposit.
INVETSMENT SERVICES
At Kotak Mahindra Bank,can recognise that financial needs vary, not just
amongst individuals, but across the different stages of your life. They have
years of experience in helping people put together an investment portfolio
that works best for them.
DEMAT
Key Features
Efficient depository services that allow you to hold your shares in
convenient, "demat" formats
Leverage opportunities in the stock-market when you spot
them
S E B I ( S t o c k E x c h a n g e b o a r d of I n d i a)
I t c h e c k o u t o n N S E a n d B S E a n d a l l t y p e of s h a r e t r a d i n g
( B o t h p r i m ar y a n d s e c o n d a r y m a r k e t )
The 3-in-1 account integrates your banking, broking and demat accounts.
This enables you to trade in shares without going through the hassles of
tracking settlement cycles, writing cheques and Transfer Instructions,
chasing your broker for cheques or Transfer Instructions etc.
I n t h e a b o v e pr o d u c t s w e h a v e d i s c u s s e d i n v e s t m e n t i n
e q u i t y t h r o u g h s e c o n d a r y m a r k e t s . a n o t h er w a y of i n v e s t i n g
i n e q u i t y m a r k e t s i s t hr o u g h t h e p r i m a r y m ar k e t r o u t e
.whenever a company comes out with an initial public
o ff e r i n g y o u m a y c h o o s e t o a p p l y f o r t h e s h a r e . B a s e d o n
number of valid application received, the company would
then allot the share to applicants.
T h e o ff l i n e w a y o f i n v e s t i n g i n a n I P O i s b y f i l l i n g p h y s i c a l
a p p l i c a t i o n f or m s , c h e q u e s . A n d s u b m i t t i n g t h e f or m s
t h r o u g h y o u r b r o k e r. Wi t h K O TA K M A H I N D R A B A N K a l l
you have to do is filling number of share on the site and
submit.
D E R I VAT I V E S
C u s t o m e r s w i t h d i ff er e n t t y p e s o f r i s k pr o f i l e c a n u s e
derivatives.
Hedging the cash market position – ideal for low risk
p r of i l e .
Ta k i n g a d v a n t a g e of a r b i t r a g e o p p or t u n i t y i n e q u i t y a n d
d e r i v a t i v e s m ar k e t s – i d e a l f or l o w r i s k p r of i l e
Ta k i n g a v i e w o n s t o c k / i n d e x f or a s l o n g a s 3 m o n t h
p e r i o d – m e d i u m r i s k pr o f i l e
S p e c u l a t i v e t r a d i n g - h i g h r i s k pr o f i l e
K O TA K M A H I N D R A B A N K o ff e r s o nl i n e i n v e s t m e n t i n
f u t ur e a n d o p t i o n , w i t h b e n e f i t o f a u t o m a t e d s e t t l e m e n t s a n d
online risk monitoring system
Mutual Funds
Key Features
Assitance at every step of the investment process
An experienced research team to analyse and research the Mutual
Funds available in the market
Portfolio assistance
h team analyses and researches the Mutual Funds available in the market,
helping you make more informed decisions. The recommendations take into
account all relevant factors including the investment philosophy of the Asset
Management Company, portfolio quality, risk-adjusted returns and market
trends.
The Mutual funds on advisory list range form Debt to Equity funds and are
drawn from top performing schemes of renowned Mutual Fund houses like
Franklin Templeton, Kotak, Reliance, Prudential ICICI etc.Relationship
Manager will recommend the funds that suit the investment objectives.
I n s t e a d o f b u y i n g s h a r e s o f d i ff er e n t c o m p a n i e s t r a c k i n g t h e
price m o v e m e n t ’s p er f or m a n c e of the c o m p a n y, gr o w t h
p r o s p e c t s o f t h e i n d u s t r i e s e t c . a n d t h e n t a k i n g y o ur o w n
buy/sell decision, you may consider making investment in
e q u i t y / d e b t m a r k e t t h r o u g h t h e m ut u a l f u n d r o u t e . M u t u a l
f u n d i s a S E B I r e gi s t e r e d e n t i t y t h a t p o o l s t h e m o n e y o f
many individuals’ investors to purchase the stocks, bond or
o t h e r f i n a n c i a l i n s t r u m e n t s . p r of e s s i o n a l
M a n a g e m e n t a n d d i v e r s i f i c a t i o n ar e t h e t w o p r i m ar y b e n e f i t s
o f m u t u a l f u n d i n v e s t i n g . F or b e g i n n e r s , or f or c u s t o m e r w h o
are unable to spend time on researching stocks themselves,
m u t u a l f u n d i s a n i d e a l r o u t e f or a i n v e s t m e n t i n e q u i t y.
I n v e s t i n g i n m u t u a l f u n d s o ff l i n e i n v o l v e s , t r a c k i n g d o w n
the agents appointed by the mutual funds AMCs, filling
l e n g t h y f o r m s , w r i t i n g c h e q u e , r u s h i n g t o t h e o ff i c e of t h e
a g e n t s b ef o r e t h e c u t o ff t i m i n g t o e n s u r e t h a t t h e d e s i r e d
N AV i s a l l o t t e d
CONVENIENCE BANKING
In today's day and age time is money. You work hard and have a busy
schedule. Doing banking should be easy and convenient and not add to
worries.
Kotak Mahindra Bank realize this and have specially tailored a wide range
of value added products and services to make money work for you. These,
coupled with the highest standard of customer care will make life simpler
and easier.
Multiple Banking Channels
Today the technology driven banks are finding various means to reduce costs
and reach out to as many customers as possible spread over a diverse area.
This has led to using multiple channels of delivery of their products.
From the above table we can clearly see that HDFC Bank is the Bank which
has highest number of ATM machines on All India basis, this is followed by
ICICI Bank, then UTI.
When we look at the concentration of machines in the Delhi Region we see
that out of ICICI Bank’s 560 Machines 112 are located in Delhi representing
20%.
The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC Bank
is 11.8%, IDBI Bank is 12.3%, and CITIBANK is 13.75%.
Net Banking:
Net banking means carrying out banking transactions via the Internet. Thus
the need for a branch is completely eliminated by technology. Also this helps
in serving the customer better and tailoring products better suited for the
customer.
A customer can view his account details, transaction history, order drafts,
electronically make payments, transfer funds, check his account position and
electronically communicate with the bank through the Internet for which he
may have wanted to visit the bank branch.
Net banking helps a bank spread its reach to the entire world at a fraction of
the cost
Phone Banking:
SMS Banking
Kotak Mahindra Bank's SMS Banking service enables you to access your
bank account, investment account and demat account on your Mobile Phone.
Now get latest update on your account balance, salary credits, large debits,
large credits, holding value and much more, on your mobile anytime.
INTERNET BANKING
INTRODUCTION
The Internet banking is changing the banking industry and is having the
major effects on banking relationships. Internet banking involves use of
Internet for delivery of banking products & services. It falls into four main
categories, from Level 1 - minimum functionality sites that offer only access
to deposit account data - to Level 4 sites - highly sophisticated offerings
enabling integrated sales of additional products and access to other financial
services- such as investment and insurance.
DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk
considerably. The Internet has leveled the playing field and afforded open
access to customers in the global marketplace. Internet banking is a cost-
effective delivery channel for financial institutions. Consumers are
embracing the many benefits of Internet banking. Access to one's accounts at
anytime and from any location via the World Wide Web is a convenience
unknown a short time ago.
OTHER SERVICES
BANKING HOURS
Kotak Mahindra Bank Account holders have been able to infer that Branch
Banking is the second most Frequent Point of Interaction with the Bank. The
Average Banking Hours is a very important aspect associated with any
Bank. In today’s fast paced life where people who hold Accounts with the
Bank are busy working it is important that they can find a way to visit the
Bank without having to miss out on work.
The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm,
the Bank is open to the public for ten hours. These timings are convenient
for especially those Account holders who are working, these people can visit
the Bank after their Office finishes.
Apart from the Average Banking Hours Kotak Mahindra Bank offers to it’s
Account holders 24 Hour Branch, 365 Days Branch and the facility of
Sunday Banking.
Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in
India, this is a big boon for people who cannot take the time out to visit the
Bank during the normal working hours and is also very handy during
emergencies.
the 365 Day Branch of Kotak Mahindra Bank is also unique and the only
other Bank offering this service is ABN Amro , this Branch is open
regardless of the fact that it is a Sunday or a public holiday.
Sunday Banking is very useful for people who are busy throughout the week
and the only day when they find the time is Sunday. Other Banks offering
this service apart from Kotak Mahindra Bank are ABN Amro and
CITIBANK.
COMPETIVE PROFILE
HDFC BANK
The bank was incorporated in August 1994 in the name of 'HDFC Bank
Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
The transactional banking business also registered healthy growth With cash
management volumes increased by around 80% and trade services volumes
by around 40% over the previous year. Portfolio quality as of March 31,
2008 remained healthy with gross nonperforming assets at 1.3% and net
non-performing assets at 0.4% of total customer assets. The Bank’s
provisioning policies for specific loan loss provisions remained higher
than regulatory requirements.
HDFC BANK PRODUCT AND CUSTOMER SEGMENTS
PERSONAL BANKING
Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts
HDFC BANK Market Strategy Emphasizes The Following:
Increase market share in India’s expanding banking and
financial services industry by following a disciplined growth strategy
focusing on quality and not on quantity and delivering high quality
customer service.
Leverage our technology platform and open scaleable systems to
deliver more products to more customers and to control operating
costs.
Maintain current high standardsfor asset quality through disciplined
credit risk management.
Develop innovative products and services that attract the targeted
customers and address inefficiencies in the Indian financial sector.
Continue to develop products and services that reduce bank’s cost of
funds.
Focus on high earnings growth with low volatility.
1. Demand deposits:
"Demand Deposits" means a deposit received by the bank which is
withdrawn able on demand;
a) Savings Account:
"Savings Deposits" means a form of Demand Deposit which is subject
to restrictions as to the number of withdrawals as also the amounts of
withdrawals permitted by the bank during any specified period;
HDFC provides with saving bank account with the usual facilities,
and one also gets a free ATM card, intrbranch banking, bill payment
facilities, phone banking and mobile banking.
2. Term Deposits:
"Term Deposit" means a deposit received by the bank for a fixed
period withdraw able only after the expiry of the fixed period and
includes deposits such as Recurring / Double Benefit Deposits / Short
Deposits / Fixed Deposits / Monthly Income Certificate / Quarterly
Income Certificate.
3. Notice Deposit:
''Notice Deposit'' means Term Deposit for a specific period but which
can be withdrawn on giving at least one complete banking day's
notice.
4. Current Account:
5. Corporate Account:-
7. Sweep-In Account:-
Apart from Regular and Premium Current Accounts HDFC also has
HDFC Bank Plus, a Current Account and then something extra for the
HDFC bank customers. One can transfer up to Rs. 50 lakh every
month at no extra charges, between the four metros. One can also
avail cheque clearing between the four metros, get cash
delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts,
at-par cheque, outstation cheque clearing facility, etc.
One can conduct hassle-free transactions on the stock market for one’s
shares. The shares held by the customer are protected from damage,
loss and theft, by maintaining these shares in electronic form. This
account can be accessed through Internet too.
11. Loans:
There are a variety of loan schemes offered like personal loans, new
car loans, used car loans, loan against shares, consumer loans, two
wheeler loans, and home loans. These are available with easy payback
in monthly instalments. Loans are sanctioned with easy
documentation and quick delivery.
Purpose
External repairs
Tiling and flooring
Internal and external painting
Plumbing and electrical work
Waterproofing and roofing
Grills and aluminum windows
Waterproofing on terrace
Construction of underground/overhead water tank
Paving of compound wall (with stone/tile/etc.)
Home extention loan
ICICI BANK
ICICI Bank is the largest private sector bank & the second largest bank in
the country in terms of assets. It is a pan-India player with around 950
branches (including recently acquired Sangli bank). The bank has boosted
it’s overseas operations in the last three years and now has presence in 18
countries either through subsidiaries or representative offices .Together with
it’s subsidiaries , ICICI Bank offers a complete spectrum of financial
services & products ranging from commercial banking to investment
banking , mutual fund to insurance.
ICICI has a very compelling growth story ahead of it as Indian economy
continues to boom. The GDP growth in India has been an average 8% for the
last 3 years. Although I think that the market has some more downside left to
it, if I were to build a new position in ICICI, I would start buying here on
dips maybe in one-thirds or one-fourths.
Investment Rationale :
ICICI Bank will remain a one of the most fancied stocks among the
investors who believe in India’s long-term growth story.
Retail banking though slowed down will remain focus area for ICICI
Bank
Massive scale up in international banking
Innovate approach to tap potential in Rural & SME sector
Robust non-interest income compensating for slower growth in Net
Interest Income
Sangli Bank acquisition will help the bank to improve CASA
deposits .
Positioning:
• Core proposition – ‘Hum hain na’ – trust, credibility, total financial
solution provider (brought about through its cross selling effort)
• Modernization – process and physical evidence – technology as the
backbone and accelerator
• ICICI bank is absolute appalling. Their slogan of “Hum hain na” is
very apt, only that it applies to their customers (i.e. us poor mortals).
Hum hain na &&& to bank with ICICI.
• ICICI bank the most amazing bank with a punch line as “Hum Hain
Na”, i think they mean ” Hum hain - -na (not available)”
• (Earlier I was with ICICI) I must say they rock; very good bank with
great customer support.
DISTRIBUTION STRATEGY:
• Cross selling of products as a major area of focus
• Creation of concept of DSA (Direct Selling Agent)
• Creation of concept of DST (Direct Selling Team)
• Effort on the part of the bank to reach the customer rather than waiting
for the customer
• Use of internet, mobile, ATM’s and other technological device to
reach and serve the customers
•
CHANNEL STRATEGY:
1) PROMOTION STRATEGY:
Corporate branding
Product branding
2) PUBLIC- RELATIONS :
Need to be seen…everywhere!!’
• Events at corporate campus
• Promotional material at channel partner outlets
• Billboards
• Signages
• Kiosks in residential and commercial complexes
4) OTHER INITIATIVES :
• In-film promotions – Baghban
• Co-Branding Initiatives
– Alliance with Amway India for launch of the international
credit card. The card will enable Amway distributors to
purchase Amway products and earn and redeem reward points
– Indian Railways Catering And Tourism Development
Corporation, in conjunction with ICICI Bank, announced the
launch of mobile payments and ticketing system, offering
IRCTC customers to book railway tickets via SMS and make
payments through their ICICI Bank account.
SAVINGS ACCOUNT
ICICI Bank offers customers a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now
customers can bank at their convenience, without the stress of waiting in
queues. ICICI Bank provides its customers with various types of savings
accounts keeping in mind different needs of different people.
The Normal savings Account that ICICI offers has the following salient
features
2. Internet Banking: This is a value added service that the customers are
offered free of cost it allows them to check their account balance, pay
utility bills, make fund transfers between self accounts as well as third
party at the click of the mouse.
The Special Savings Account has been designed keeping in mind the
specific needs of organizations such as Trusts, Associations, Societies,
Councils, Clubs etc. It provides organizations solutions with added
value and is ideal for tax exempted entities.
3. Others:
- Internet Banking .
The Senior Citizen Account has a few services that the Normal Savings
Account does not offer. The salient feature of the Senior Citizen Account
are
Young Stars is a banking service for children, aged 1day -18 years, brought
to you by ICICI Bank to help the parents meet the present and future
aspirations that they hold for their child. It offers various savings and
investment options to the parent along with teaching the child to manage
his/her personal finance in a more responsible and independent manner.
Young Stars will guide your child through the world of banking -through
checking the account balance, fun zones and special pages on the internet. It
makes banking a pleasure and of course teaches your child to manage their
personal finances.With the pocket money that you transfer to your child's
account, you can even shop with him / her at Young Stars very own
shopping page.
Once you are done with your 'banking', you can access your child's account
with all the fun links to special zones designed to suit your child's area of
interests and also impart knowledge on the current events of the world.
Salient features:
ii Based on the prevailing rate of interest, the bank staff would then back
calculate the installments to be deposited now till maturity.
5. Free Domestic Debit Card* for the child above the age of 10 years
with features as below:
a Separate user ids and passwords for both parents and children
10. Alliances with various partners to meet the child's needs in varied
interest areas such as clothing, computers, books, music, toys etc.
Women’s Account:
The features of the account have been specially designed keeping in mind a
woman's financial requirements. These include
A) Recurring Deposits
•Internet Banking
•Phone Banking
•ATM's
Recurring deposit
•Can be used for your future expenses like your child's education, marriage,
festivals, or just to buy that gold necklace you always wanted, by keeping
aside a small fixed amount every month
A "Young star" account - special account for kids to promote the savings
habit in them can be opened for just for a minimum balance of Rs.500 per
quarter. The account has the following features
Current Accounts:
• Service Required
• Mobile Banking
Escrow Account:
The funds in the Escrow a/c are held for the benefit of the
Beneficiary of the a/c rather than person / company in whose
name the a/c is opened. For e.g.. in a borrower lender
arrangement, the a/c name is "Borrower - Escrow a/c" and the
funds deposited are that of the borrower but the funds are held in
the escrow a/c for the benefit of the Lender .
Only Roaming Current Account from ICICI Bank travels the distance with
customers business. With advanced technological features such as MCC and
LCC, banking needs are well taken care of, customers can access their
accounts at over 500 networked branches across the country.
So while customers take care of their business, ICICI Bank’s Roaming
Current Account simplifies banking for them.
Product Features :-
CASH NET
It is an Alliance between Citibank, Industrial Development Bank of India,
Kotak Mahindra Bank and UTI Bank. This is the country's first independent
shared ATM network.
IDBI Bank received permission from the Reserve Bank (RBI) to serve as the
network's settlement bank.
Cash net will give access to more than 1,300 ATMs for more than 6 million
debit cardholders of the member banks. The Alliance would constitute about
a third of the total card base and 15 percent of the ATM base in the country.
REDIFF.com India and Kotak Mahindra Bank have entered into an alliance
to provide online and offline banking and related services to the Indian
consumer.
The alliance will enable information on the entire range of the banks
consumer banking products to be made available to the 6.4 million online
customers of Rediff.com.
The services offered include detailed information on various deposits, loans
and mortgages, credit cards, mutual funds and insurance products of the
bank. Users will be able to directly interact with the bank and request for
products online
Survey Conducted on 50 Respondants
Less than 6
Over 2 years months
6 months to 1
17% 3%
year
30%
1 to 2 years
50%
Recommended by
Family/Friend
Brand Name/Reputation
34% of bank
44%
Advertisement
Branch near
16% 0%6% Office/Residence
Other Reasons
If the Bank could get to know of that very compelling factor that convinced
the customer to open the account then the Bank could use this in its favor to
attract more customers.
From the study conducted the factor which has come out strongest in this
regards is the “Other Reasons” getting 44% of the responses, going deeper
into this response by asking the respondent what is the factor they include in
this Other Reasons is that most people are not the deciding factor when they
open a saving account, this is done so by their employers. The customer’s
salary accounts are created by the companies in which they work.
30 26
25
20 16
15
10 6
5 2
0 0
0
Visit Branch ATM Phone Drop Box Internet Door Step
Banking Banking
The Banks are very interested to know the most popular Point of
Interaction with the Bank as if the Bank is lacking in one of these steps can
be taken to make the situation better.
From the study we can see more than half (more than 50%) of the total
respondents feel that they interact most with the Bank with the help of ATM.
Hence the importance of ATM cannot be overstated.
The Second most popular point of interaction that arises from the study is
the Branch with 32% of the respondents favoring this option. Kotak
Mahindra Bank is unique in an aspect that it follows the “Any Branch
Banking” wherein the Account holder can use any of the Banks 156
Branches all over the country.
An aspect that customers really appreciate is the 24 hour Branches and the
365 Days Branches of Kotak Mahindra Bank. The 24 Hour Branch of
Kotak Mahindra Bank is located at sector 18 noida apart from these
Branches in Mumbai and other cities in India.
Kotak Mahindra Bank is the only Bank which has the facility of a 24 Hour
Branch. As for a 365 Day Branch the only Bank having this facility apart
from Kotak Mahindra is UTIBank.
The third most Frequent Point of Interaction is Phone Banking with 11.5%
of the respondents favoring this medium. Phone Banking is one of the new
age Banking techniques. It is in it’s infancy in India and people have not
taken to it as is the case in other Developed Countries in the World.
In the study it was seen that customers have mixed feeling when it comes to
Phone Banking as sometimes they do not find it as an effective alternate to
traditional forms of Banking.
The forth most Frequent Point of Interaction with the Bank is Internet
Banking with 4% of the respondents favoring this medium. Internet
Banking is the most modern means of Banking available to the customers
but due to the general perception that this medium is not safe it is not used
by many people.
In our study only 60% of the total respondents have at least once used
Internet Banking.
The two options which were not favored by any respondents as the most
Frequent Point of Interaction are Drop Box Facility and Door Step
Banking
.
OVERALL SATISFACTION LEVEL
30 26
25
20
14
15
10
10
5
0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
Any service provider would want their customers to have a high Overall
Satisfaction level. Kotak Mahindra Bank has scored very well in this regard.
The most important thing is that no respondent has complained that they
are overall dissatisfied with the bank. This is a very important finding
because this shows the effort Kotak Bank puts in providing their customers a
superior service has not gone waste.
More than half of the total respondents (52%) say that they are somewhat
satisfied with the overall service of the Bank. About 30% of the total
respondents say that they are Very Satisfied with their Overall
Experience with the Bank.
Hence about 82% of the Respondents are Satisfied with their Overall
Experience with the Bank.
The study is showing a very good Overall Satisfaction Level by the
Account holders
25 23
20
15
15
10
10
5 2
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
25 22
20
14
15
10
10
4
5
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
From the analysis of the data that has been collected from Kotak Mahindra
Bank Account holders we can see that majority of the respondents are
satisfied with the Average Banking Hours.
The respondents who are Somewhat Satisfied with the Banking Hours
consist of 44% of the total, while 28% of the total respondents studied say
that they are Very Satisfied. In all 72% of the total respondents are satisfied
with the Banking Hours of Kotak Mahindra Bank.
The respondents who are neither Satisfied nor Dissatisfied consist of 20% of
total number studied, while 8% of the respondents are somewhat
dissatisfied.
ATMDécor of Bank
12% 0%
Courteous Staff
26% Efficient service
62%
The most frequent point of interaction with the Bank is ATM facility, the
Account holders whether in Private/Foreign sector or the Government sector
have been provided with ATM facility by their respective Banks. To judge
the performance level of any Bank today it is crucial that the ATM service of
the Bank be studied, this includes not only the number of ATM machines
installed by the Bank , but also how technologically advanced the machines
are (number of transaction that can be done with the ATM Facility), the
effort Bank undertakes to maintain the machines and also the overall
experience of the Account holder with the service.
The percentage of respondent considering the ATM service as most
important were 12% of the total sample size.
But from the respondents who were questioned none of them said that the
Décor/Ambience of the Bank Branch was most important. On further
Questioning it was revealed that they did want well-maintained
Branches/Other Bank Interaction points but this was not the most important
aspect.
No
21%
Yes
79%
The general perception is that the service quality of Private Banks is superior
to that offered by Government sector Banks; we wanted to study whether
this is a true phenomenon or whether this was just hearsay.
The most important findings would come from the group of respondents
who hold Saving Accounts with both Private and Government run Banks, as
these people would be in the best position to judge the service offered by the
Banks.
According to this group of respondents the Range of Products that are
offered by Private sector Banks are much more diverse than those offered by
Government Banks.
Also these respondents felt that the Banks in the Private sector were much
more flexible than their Government counterparts when dealing with
customers were concerned.
Private sector Banks are much more proactive when it comes to offering it’s
customers new-age methods of Banking like ATM Facility , Internet
Banking , Phone Banking, These services make the life of Account holders
much easier.
Another major difference that comes to most of the respondents minds when
comparing the Private and Government sector Banks is the Staff Attitude
towards the customers. Sure Private sector Bank Account holders have had
problems dealing with Bank Staff, but they still feel it is much better than
how Government employees behave. These Government employees show as
if they are doing a favoring on the customer when they do their job.
Private sector Bank customers are offered many freebies and incentives to
remain with the Bank, or try new products of the Bank. This is never the
case with Government Banks.
Overall the result of this question very clearly states that people consider
the service level of Private Banks much higher than Government Banks
as 79% of the respondents agree and only 21% of the respondents
disagree.
Chapter-5
CONCLUSION
3. Aims to serve all classes of the society from the salaried middle class to
the high income business class.
Customers are categorized and segmented according to their
requirements and needs.
For Example, the EDGE Saving Account aims to serve middle class
customers so minimum balance required to be maintained is Rs. 10000.
While the PRO and ACE Saving Accounts are targeted at high income
customers, the minimum balance requirement is Rs. 20000 and Rs.
75000.
Extended happy hours at certain pubs in Delhi for the Bank’s account
holders.
10. The Bank also provides DEMAT account and also sells Mutual Funds,
this provides the Bank and Government additional revenue.
11. The Bank has been very successful in enlarging its customer base
during the last couple of years.
12. The Number One Reason of people choosing Kotak Mahindra Bank is
the Brand Name/Reputation of the Bank. Hence it should be careful that
the Brand name and Goodwill the Bank has earned is not diluted.
13. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank
and STANDRAD CHARTERED.
14. ATM Facility is most popular way to transact with the Bank.
15. Overall the customers appreciate the service and products offered by the
Bank and are willing to recommend the Bank to their acquaintances ,
But more attention has to paid towards:
2. Customers value Efficient Service over every other aspect, this is far
more important than the number of ATM machines, Staff, Décor of
Bank.
NAME ___________________________________________
ADDRESS ________________________________________
AGE
Below 25 years 25 to 40 40 to 55 Above 55 years
OCCUPATION
Business Professional Service Student Others
ANNUAL INCOME
Less than 1.5 Lakh 1.5 Lakh to 3 Lakh 3 Lakh to 4.5 Lakh
above 5 Lakh
Yes No
Land/Property
Jewellery
Yes No
6. How many times a week does you use your ATM/Debit Card?
Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking
Yes No
9. Do you agree with the view that your money would be safer in a
nationalized bank rather than a foreign bank?
Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
10. Are you influenced by advertisements in your choice of bank?
Yes No
Yes No
BIBLIOGRAPHY
There was immense need and flow of the information while conducting the
analysis as well as while writing the thesis report, which was gathered
through various sources mentioned below:
SYNOPSIS
The central bank of India is the Reserve Bank: most large commercial banks
were nationalized in 1969, with more being nationalized in 1980. The
Department of Banking at the Ministry of Finance controls all banking. The
State Bank of India, the largest commercial bank, handles some of the
Reserve Bank’s roles. Cooperatives and credit societies are an important
supplement to the private banking industry, especially in rural areas.
The Entry of Foreign Banks in the Early 1990’s has brought about a
Revolution in the Banking industry. The superior service levels of these
Banks have forced even the Nationalized Banks to wake up to the reality that
if they do not live up to the customer’s expectation they will soon cease to
exist.
The first change along this line was brought in by the foreign banks with
their emphasis on high quality and efficient service combined with
technological advantages like satellite banking and tele-banking manned by
skeletal staff and lesser number of branches.
Over the last few years, the communication style too has changed with
respect to the banking industry. Communication has shifted from branding
the bank to branding banking products, highlighting service commitments,
convenience, etc. Further, branding of banking products such as home
loans, consumer durable loans, tele banking, ATMs, net banking etc
have started taking place, especially after the entry of foreign banks and
private sector banks which had the advantage of the latest technology.
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