In The Partial Fulfillment of The Degree Of: Kotak Mahindra Prime LTD

KOTAK MAHINDRA PRIME LTD.
Summer Internship Project Report
On
“Evaluation of Loan Proposals”
in the partial fulfillment of the Degree of
Master of Business Administration
Submitted By
Parteek Garg
[Roll No: 501704039]
Batch: 2017-19
Under the Guidance of
Mr. Gulshan Rupal (Manager)
(Kotak Mahindra Prime Ltd.)
L.M. Thapar School of Management
(Thapar University, Patiala)
Dera-Bassi Campus, Mohali – 140507
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Declaration
I confirm that a project work is undertaken by me is an original authentic work

done by me. This project is been submitted in partial fulfilment of the degree of
Master of Business Administration from LM Thapar School of Management.
The content of this report is based on the information collected by during my

tenure at Kotak Mahindra Prime Ltd. In Chandigarh. During eight weeks of
training from 24th May 2018 to 20th July 2018.
Date: ____________
Parteek Garg
501704039
Certified that the above statement made by the student is correct to best of our
knowledge and belief.
(Dr. Karminder Ghuman)
Thapar Institute of Engineering & Technology,
Patiala
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Acknowledgment
Words are indeed inadequate to convey my deep sense of gratitude to all those who
have helped me in completing this summer project to the best of my ability. Being
a part of this organization has certainly been a unique and a very productive
experience on my part.
To start with, I would like to thank to the organization Kotak Mahindra Prime Ltd.
(ASM – Punjab & Rajasthan – Manish Jain) for providing me the chance to
undertake this internship study and allowing me to explore the area of finance
which would prove out to be very beneficial to me in my future assignments, my
studies and my career ahead.
I wish to place on records, my deep sense of gratitude and sincere appreciation to

my company guide and mentor, Mr. Gulshan Rupal (Location Sales Manager),
who suggested and prepared the framework of the project. I would also like to
thank him for his continuous support, advice and encouragement. I would also like
to thank Mr. Rattan Dass (Assistant Manager) for his continuous guidance and
support throughout the internship.
I am grateful to all my college facilitators, who guided and motivated me on every

step taken by me for the completion of the project.
I am obliged to all the staff members of Kotak Mahindra Prime Ltd. For the
valuable information provided by them in their respective fields. I am grateful for
their cooperation and welcoming nature during the period of my project.
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Executive Summary
Banks in India underwent a drastic change in terms of its working and policies after
liberalization. The field of Credit Appraisal also witnessed these changes. The
project will deal with the development of understanding of evaluation of loan
proposals and credit appraisal policies adopted by the bank. It will also help in
improving knowledge about the credit appraisal system and to know the patterns of
credit appraisal in Kotak Mahindra prime Ltd.
This project report contains 4 chapters. The report begins with the introduction to
the company, its area of operation, its products and services, its achievements, etc.
The second chapter is a detailed industry analysis of the banking industry which
shows the evolution, growth and current scenario and challenges faced by the
banking industry. It also covers the major players in the industry and their market
shares and their performance.
The third chapter contain the detailed study of the project. As we know that no
finance can be made available without the credit appraisal of the project, thus this
chapter talks about the process flow of the Advances operation. The client proposal
helps us to understand the Analysis of Working Capital and Term Loans which
forms the base for the advances made by the bank. The various standards and ratios
used by the bank are also analyzed. On the advances side, the Analysis of a proposal
has been done to give a clear understanding of the procedure followed at the bank.
The fourth chapter deals with conclusion and recommendations part which is very
important after analysis is made. I have also tried to study the existing policies with
the aim at finding out how the working can be improved.
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Objectives
• To work with an eminent Bank and to get a taste of corporate life.

• To understand the working in the banks.
• To bridge a gap between practical life and the theory that we have learnt in
our courses.
• To understand the business and competitive environment in which Kotak
Mahindra Prime Limited operates.
• To analyze and understand the financial position of Kotak Mahindra Prime
Limited viz-a-viz its competitors.
• To study the policies and procedure for the Credit Appraisal.
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Table of Contents
Name of the Topic Page No.
Declaration 2
Acknowledgment 3
Internship Certificate 4
Appreciation Letter 5
Executive Summary 6
Objectives 7
Chapter 1 Introduction 9–28
Chapter 2 Industry Analysis 29-50
Chapter 3 Study of the Project 51-60
Chapter 4 Finding and Recommendation 61-62
Annexure 1 63-70
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Chapter 1
Introduction
KMPL PROFILE
Kotak Mahindra Prime limited (KMPL) is a subsidiary of Kotak Mahindra Bank

Limited primarily formed to finance all passenger vehicles. KMPL is India's
Leading car finance company. The company is dedicated to financing and
supporting automotive manufacturers, dealers and retail customers. The company
offers financing in the form of loans for the entire range of passenger cars, multi
utility vehicles and pre-owned cars. The company also offers Inventory funding
and infrastructure funding to car dealers. KMPL has preferred financier
relationship with various car manufacturers in India such as Fiat Chrysler
Automobiles Pvt.ltd, Honda, Hyundai, Maruti, Toyota, M&M, Volkswagen,
Skoda, Audi, Ford, Renault, Nissan etc. KMPL has a robust delivery platform,
which is critical for sustained growth. The company also offers loans against
securities, developer loans, corporate loans, personal loans, securitization and
assignment transactions and purchase of non-performing assets. KMPL has a retail
distribution network comprising 79 branches in 18 states in the country and a wide
network of Direct Marketing Associates, brokers and agencies supporting its
distribution network.
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About Kotak Mahindra Group
Established in 1985, Kotak Mahindra Group is one of India's leading financial

services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL),
the Group's flagship company, received banking licence from the Reserve Bank of
India (RBI), becoming the first nonbanking finance company in India to convert
into a bank - Kotak Mahindra Bank Ltd.
As on June 30, 2016, Kotak Mahindra Bank Ltd, has a significant national
footprint of 1,333 branches spread across 674 locations and 2,034 ATMs, affording
it the capacity and means to serve its customers through its wide presence.
The consolidated net worth of the Group stands at Rs. 34,443 crores (US $ 5.1
billion; 1 US $ =67.62) as on June 30, 2016. The Group offers a wide range of
financial services that encompass every sphere of life. From commercial banking,
to stock broking, mutual funds, life insurance and investment banking, the Group
caters to the diverse financial needs of individuals and the corporate sector. The
Group has a wide distribution network through branches and franchisees across
India, an International Business Unit at GIFT city, Gujarat, and international
offices in London, New York, Dubai, Abu Dhabi, Mauritius and Singapore.
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Our Corporate Identity
The symbol of the infinite Ka reflects our global Indian personality. The Ka is
uniquely Indian while its curve forms the infinity sign, which is universal. One of
the basic tenets of economists is that man's needs are unlimited. The infinite Ka
symbolises that we have infinite number of ways to meet those needs.
Promoters
Kotak Mahindra Prime Limited (KMPL) (earlier Kotak Mahindra Primus Limited)
was incorporated on February 28, 1996. It was formed as a Joint Venture with
Kotak Mahindra Bank Limited (then Kotak Mahindra Finance Limited) holding
60% and the balance being held by Ford Credit International Inc., U.S.A.
On October 4, 2005, the Joint Venture was realigned and the entire 40%
shareholdings of Ford Credit International Inc., in the company was purchased by
Kotak Group. The Registrar of Companies, Mumbai approved the change in name
of the company from Kotak Mahindra Primus Limited to Kotak Mahindra Prime
Limited with effect from December 1, 2005.
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Board of Directors
Mr. Uday Kotak (Chairman)

Mr. Vyomesh Kapasi (Managing Director)
Mr. Chandrashekhar Sathe
Mr. Narayan S A
Ms. Shanti Ekambaram
Prof. S. Mahendra Dev
Highlights of the Company
• The company started with a joint venture between Kotak Mahindra Bank
Limited (formerly, Kotak Mahindra Finance Limited) which holds 60 % of
the equity share capital and Ford Credit International Inc., USA that holds the
balance 40 % of the equity and 2007 it cancellers the joint venture.
• The company has been a significant player in the car finance market in the
last 10 years.
• The company has been able to maintain increased disbursements year over
year due to increased geographic reach and improved depth of distribution.
• The company gives inventory funding to dealers.
• The company has a distribution network across 53 locations in the country
covering over 100 towns.
• The company enjoys good relationship with major automobile manufacturers.
• The delinquency ratios of the company are the best among the auto finance
industry.
• The company has been consistently improving its profits since the last three
years.
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The existing major competitors in the car finance are:
▪ Reliance Capital Limited.

▪ Axis Bank.
▪ HDFC Bank Limited.
▪ ICICI Bank Limited.
▪ Federal Bank.
▪ State Bank of India.
▪ Sundaram Finance.
▪ Mahindra and Mahindra Finance.
Kotak Cochin division started its operations in 1997. This Cochin Branch office
operates as head office to other branches in Kerala. It controls the entire operations
in the state. It has four branches in Kerala. They are in Kottayam, Trichur, Calicut
and Thiruvananthapuram. Trichur and Calicut branch started its operations in 1998
and Thiruvananthapuram branch started in 1999.
Features:
▪ It is a profit centre of KMPL.

▪ The business attitude towards customers is based on IRR.
▪ High level of automation.
▪ It controls the entire business of Kerala.
Profit Centre
Cochin branch is a profit centre of KMPL. Since it’s a profit centre it can decide its
own lending rates. The Cochin division decides the rates and sends it to the corporate
office Mumbai for approval. The corporate office may approve or disapprove it and
inform the cent, which it takes reasonable. It is only in the case of minimum lending
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rate. Highest rate can go up to any figure. The Corporate Office’s decision is based
on certain parameters. They are:
• Operations cost.
• Delinquency rate.
• Margin (difference between lending rate and borrowing rate)
• Product mix.
VISION
The vision of KMPL is:
The Global Indian Financial Services Brand | Our customers will enjoy the benefits
of dealing with a global Indian brand that best understands their needs and delivers
customized pragmatic solutions across multiple platforms. We will be a world class
Indian Financial service 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 customer’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 partnership with international leaders, gives our people a perspective that
in 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 corporate
governance will be an integral part of building trust. Value Creation | Value Creation
rather than size alone will be our business driver.
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CERTIFICATIONS, AWARDS AND RECOGNITIONS
Kotak Mahindra has received a number of Awards and Certifications at both the
national and international levels. These recognitions are on its various field of
functions including Banking, Insurance, securities, investment banking, asset
management, International asset management. Miscellaneous and wealth
management.
Banking:
• ICAI Award: Excellence in Financial Reporting under Category 1 -

Banking Sector for the year ending 31st March, 2010.
• Asia money: Best Local Cash Management Bank 2010
• IDG India: Kotak won the CIO 100 'The Agile 100' award 2010.
• IDRBT: Banking Technology Excellence Awards Best Bank Award in IT
Framework and Governance Among Other Banks' - 2009
Banking Technology Award for IT Governance and Value Delivery, 2008.
• IR Global Rankings: Best Corporate Governance Practices - Ranked
among the top 5 companies in Asia Pacific, 2009.
• Finance Asia: Best Private Bank in India, for Wealth Management business,
2009.
• Kotak Royal Signature Credit Card: Was chosen "Product of the Year" in
a survey conducted by Nielsen in 2009
• IBA Banking Technology Awards:
o Best Customer Relationship Achievement - Winner 2008 & 2009
o Best overall winner, 2007
o Best IT Team of the Year, 4 years in a row from 2006 to 2009
o Best IT Security Policies & Practices, 2007
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• Euro money: Best Private Banking Services (overall), 2009
Insurance:
• Outlook Money
Kotak Platinum Advantage Plan - Ranked 1st in Type II ULIP category,
2008
Kotak Long Life Wealth Plus Plans - Ranked 4th in the Type I ULIPs
category
Securities:
• Finance Asia
Best Broker in India - 2010
• CNBC Financial Advisor Awards
Best Performing Equity Broker, 2008 & 2009
• Asia money Brokers Poll
Best Local Brokerage, 2006, 2007, 2008 & 2009
Best Analyst in India – Sanjeev Prasad, 2005, 2006, 2007, 2008 & 2009
• Finance Asia Country Awards for Achievement
Best Broker in India, 2006, 2009 & 2010
• Thomson Extel Surveys Awards
India's Leading Equity House, 2007
• Super Brands Council of India
Business Super brand India, 2008
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Investment Banking:
• Finance Asia
Best Investment Bank in India, 2010
Best Equity House in India, 2010
Best Broker in India, 2010
• Asia money
Best Domestic Equity House, 2010
Best Local Brokerage in the Asia money Brokers Poll – 2010
• Global Finance
Best Investment Bank in India, 2010
• Euromoney Real Estate Poll
Best Bank for Equity Finance in India, 2010
• Asset Asian Awards
Best Domestic Investment Bank, 2010
• Finance Asia Country Awards for Achievement
Best Investment Bank in India, 2006, 2007, 2008, 2009 & 2010
Best Equity House in India, 2008 & 2010
• Asia money Best Domestic Bank Awards
Best Domestic Equity House, 2008, 2009 & 2010
• IFR Asia
India Equity House of the Year, 2008
• Global Finance
Best Investment Bank in India, 2008, 2009 & 2010
• Asset Asian Awards
Best Domestic Investment Bank, 2006, 2007, 2008 & 2009
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Asset management:
• ICRA Mutual Fund Awards 2009

Kotak Liquid (Regular Plan) - Ranked as a Seven Star Fund for its 1 year
performance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 1 year
performance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 3 year
performance
Kotak 30 - Ranked as a Five Star Fund for its 3 year performance
International Asset Management:
• Global Investor (Editorial Award)

Asian Asset Manager of the Year, 2009
Miscellaneous:
• Business world
'Most Valuable CEO' overall, 2010 awarded to Mr. Uday Kotak, Executive
Vice Chairman & Managing Director
• CNBCTV 18
'Best Performing CFO in the Banking/Financial Services sector by
CNBCTV 18 CFO Awards 2010 awarded to Mr. Jaimin Bhatt
• GIREM
GIREM awarded Kotak Realty Funds Group, the "Investor of the Year"
Award for 2009
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• IBA Banking Technology Awards

Best Use of Business Intelligence - up, 2008
Best Enterprise Risk Management - Runner up, 2008
• The Great Places to Work Institute, India
Best Workplaces in India, 2008
• Hewitt
10th Best Employer in India, 2007, 2008 & 2009
• Financial Insights Innovation Award
Best Innovation in Enterprise Security Management in the Asia Pacific
Region, 2009
• Frost & Sullivan
Best Passenger Vehicle Finance Company in India, 2006
• CNBC TV 18
Indian Business Leader of the Year, 2008 awarded to Uday Kotak,
Executive Vice Chairman & Managing Director .
Wealth Management
• Finance Asia
Best Private Bank India – Finance Asia 2010
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VARIOUS FINANCIAL SCHEMES PROVIDED BY KMPL
MARGIN MONEY SCHEME:
In this scheme, we finance your car for up to 90% for certain models. You will have
to give us a down payment for the margin amount, (invoice value minus Finance
amount). The financed amount can be repaid as per your convenience in tenures of
12 months to 60 months at your convenience either through Equated monthly
Installments or a differential plan that we can tailor for you to minimize your
outflow.
STEP UP SCHEME:
In this scheme, the EMI increases after every year, six month or quarter depending
upon the customer needs. This is best suited for people who want to experience the
luxury of the car and wants to pay in line with their growing income starting from
Low EMI in the early period of repayment.
LOW EMI BALLOON SCHEME:
In this scheme 10%-25% of the cost of the car is paid as last EMI, thereby reducing
the EMI for the entire tenure. The scheme is for customers who want to dispose off
their vehicle at the end of the tenure but are looking at affordable EMI’s during the
tenure.
ADVANCE EMI SCHEME:
In this scheme, you make the payments of a few monthly installments upfront. The
balance is payable through Equal Monthly Installments. With the advance
installments you can repay your loan much faster.
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7 SIMPLE STEPS TO OWING A CAR ACCORDING TO KMPL
KMPL offers,
❖ Finance on the widest range of new and pre-owned cars.

❖ Attractive interest rates.
❖ Flexible schemes.
❖ Speedy processing.
According to KMPL, there are 7 simple and convenient steps so that the process of
buying a car can be as enjoyable as owing a car.
STEP: 1 GETTING INFORMATION:
Customer can get information on company’s finance schemes in various ways

mentioned below:
a. Company’s DMA (Direct Marketing Associates).

b. At dealer point- they are associated with most dealers in city and have a
representative who will give the information on their finance schemes and other
services. The representatives will be present at the KMPL counter or can be
approached through the dealer representatives.
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STEP: 2 RECEIVING THE KMPL OFFER:
Company offer tailor made schemes based on customer’s need.
• Margin money scheme.

• Step up scheme.
• Low EMI balloon scheme.
• Advanced EMI scheme.
• Special schemes offered by KMPL.
STEP: 3 DOCUMENTATION:
Once the vehicle, product and scheme are realized, it will be time for the company
to initiate the process of making finance available to the customer as soon as possible
based on their financial documentation.
STEP: 4 CREDIT EVALUATIONS:
A KMPL officer will evaluate customer’s credit worthiness based on the documents
submitted by them along with the FI report. A field investigation officer will visit
for additional information that will help company for process customer’s loan.
STEP: 5 PROCESSING OF FINANCE:
After credit approval, they will enter into an agreement with customer and collect
postdated cheques (PDCs).
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STEP: 6 DELIVERY OF CAR:
For the delivery, customer will receive a call from company’s sourcing agent or
sales coordinator intimating them about the tentative date of delivery.
STEP: 7 RECEIVING AGREEMENT AND RE-PAYMENT SCHEDULE:
At the time of delivery, customer must collect the invoice from the dealer.
Subsequent to receiving the RC book and invoice copy, company will send the
agreement copy and repayment schedule to customer by courier.
SOMETHING ABOUT KMPL’S CAR LOAN APPLICATION FORM
KMPL believes in safe business. So, customer has to fill up different type of
important information about their personal as well as other important matters.
Basically, there are 4 types of details customer has to fill up at a time of application.
❖ Contract details.
❖ Vehicle and finance details.
❖ Personal details.
❖ Other details (only for institution).
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CONTRACT DETAILS
1. Type of applicant:
a) Institution or individual.
b) If institution, specify the type: it can be proprietary, partnership, Pvt.ltd.
Pub.ltd. Other.
2. Type of contract:It can be hire purchase, lease, and loan.

3. Residential status of individuals: it can be resident Indian, non-resident
Indian, and foreign national.
VEHICLE AND FINANCE DETAILS
1. Customer buys either new car or used car or refinances the car.
2. Customer has to write car name, model, and color and registration no. for used
cars.
3. Invoice price, finance amount and margin.
4. Tenure, EMI amount and security deposit.
5. Name of supply dealer.
6. Payment: either booking or disbursement.
7. Write the finance product code.
8. Finance dealer name.
9. Name of sales man.
10.Sharing ratio.
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PERSONAL DETAILS
1. a. full name of applicant.
b. mother’s maiden name (individual only).
c. institution name.
2. Residential/institutional/address, area, city, pin code, tel.no. Fax, e-mail.
Residential status: company, mortgage, owned, rented and others.
3. Office address:
Office type: company, mortgage, owned, rented others.
4. Additional address (if any):

5. Designation: …………. Occupation/nature of business………
6. Date of birth… gender… marital status: bachelor, joint, nuclear, others.
7. Education & no of dependents.
8. Income tax PAN no: driving licence no. (For
individual/identification/registration no. for the company), voter’s ID no. for
individual/sales tax no.:
9. Bank name, branch name, and a/c no.
10.Credit card details: credit card no: date of expiry: issuer: type:
11.Prior finance details (any loan): in this customer has to write amount financed,
month or year of contract, and current status.
12.Activity/ source of funds/income; either borrowed or owned.
13.Gross anal income or gross annual sales/receipts.
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OTHER DETAILS (ONLY FOR INSTITUTION)
If an applicant is an institution, so they have to filled some extra information.
1. Number directors/partners/trustees:
2. Under current management since (month/year):
3. Nature of business;
4. Contract name
5. Designation.
6. Phone no.,
7. Company’s bankers name:
VARIOUS DEPARTMENTS OF KMPL
KMPL
CREDIT SALES OPERATION

DEPARTMENT DEPATRMENT
DEPARTMENT
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CREDIT DEPARTMENT
Credit department is the major department of KMPL. Customer’s credit evaluation

is done at credit department. A KMPL credit officer evaluates customer’s credit
worthiness based on the documents submitted by them along with the FI (Field
Investigation) report. A field investigation officer visits customer for additional
information like annual income of customer, nature and type of business,
information about income tax and so and so forth.
If field investigation officer gives positive repot about customer to credit department,
then and then credit officer approves applicant’s proposal for the car loan. Credit
department is very careful about their customers. They have to be very careful when
applicant is a politician, lawyer or a police officer. Because these types of customer
can create problems in future in loan installment. Sometimes they use their power in
bad way and create problems for the company.
SALES DEPARTMENT
Sales department basically consists of two major activities. Wholesale and retail
sale.
Wholesale funding is an internal part of the overall funding process. Dealers need
finance for their day-to-day activities. They can use this facility to order the vehicles
and spare parts from the manufacturers. KMPL with appropriate system company is
well positioned with the market to provide wholesale finance to most of the dealers.
Retail sale in an important part of KMPL. KMPL gives loan to customer for car
purchase, loan for used car and for lease purpose.
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OPERATION DEPARTMENT
All paper work is done at operation department. Sales coordinator is the major part
of operation department. In this section, primary data of customer are prepared as
sales ducats and then it goes for final check in operation department.
Once the primary sales ducats go in operation department, operation officer checks
ducats and prepares final document for installation. If there is some mistake in
documentation, correction can be made here.
After completing the correction process, again ducat goes for final and last
checking and then it is installed in computer systems. Once final installation is
completed, no other corrections can be made again.
When an applicant or customer is an institution, documentation process is more

important compare to individual applicant’s documentation.
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Chapter 2
Industry Analysis
The Banking industry comprises of segments that provide financial assistance and
advisory services to its customers by means of varied functions such as commercial
banking, wholesale banking, personal banking, internet banking, mobile banking,
credit unions, investment banking and the like.
With years, banks are also adding services to their customers. The Indian banking
industry is passing through a phase of customers market. The customers have more
choices in choosing their banks. A competition has been established within the banks
operating in India.
With stiff competition and advancement of technology, the services provided by

banks have become easier and more convenient. The past days are witness to an hour
wait before withdrawing cash from accounts or a cheque from north of the country
being cleared in one month in the south.
Banks are among the main participants of the financial system in India. Banking
offers several facilities & Opportunities. This section provides comprehensive and
updated information, guidance and assistance in all areas of banking in India.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank. Banking in India
on modern lines started with the establishment of three presidency banks under
Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of
Madras.
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The commercial banking structure in India consists of: Scheduled Commercial

Banks & Unscheduled Banks. Banking Regulation Act of India, 1949 defines
Banking as "accepting, for the purpose of lending or investment of deposits of money
from the public, repayable on demand or otherwise and withdrawable by cheques,
draft, order or otherwise."
The arrival of foreign and private banks with their superior state-of-the-art
technology-based services pushed Indian Banks also to follow suit by going in for
the latest technologies so as to meet the threat of competition and retain customer
base.
The evolution of IT services outsourcing in the Indian banks has presently moved
on to the level of Facilities Management (FM). Banks now looking at business
process management (BPM) to increase returns on investment, improve customer
relationship management (CRM) and employee productivity.
For, these entities sustaining long-term customer relationship management (CRM)

has become a challenge with almost everyone in the market with similar products.
Historical Background
The first bank in India, though conservative, was established in 1786. From 1786
till today, the journey of Indian Banking System can be segregated into three
distinct phases. They are as mentioned below:
· PHASE I - Early phase from 1786 to 1969 of Indian Banks
· PHASE II - Nationalization of Indian Banks and up to 1991
· PHASE III - Indian Financial & Banking Sector Reforms after 1991.
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PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency
Banks. These three banks were amalgamated in 1920 and Imperial Bank of India
was established which started as private shareholders banks, mostly Europeans
shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as
per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested
with extensive powers for the supervision of banking in India as the Central
Banking Authority. During those day’s public has lesser confidence in the banks.
As an aftermath deposit mobilization was slow. Abreast of it the savings bank
facility provided by the Postal department was comparatively safer. Moreover,
funds were largely given to the traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. Second
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phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India
under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
· 1949: Enactment of Banking Regulation Act.
· 1955: Nationalization of State Bank of India.
· 1959: Nationalization of SBI subsidiaries.
· 1961: Insurance cover extended to deposits.
· 1969: Nationalization of 14 major banks.
· 1971: Creation of credit guarantee corporation.
· 1975: Creation of regional rural banks.
· 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India
raised to approximately 800% in deposits and advances took a huge jump by
11,000%. Banking in the sunshine of Government ownership gave the public
implicit faith and immense confidence about the sustainability of these institutions.
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PHASE III
This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalisation of banking
practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. The financial
system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are
high, the capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure Banking industry is the back bone for
growth of any economy. The journey of Indian Banking Industry has faced many
waves of economic crisis. Recently, we have seen the economic crisis of US in 2008-
09 and now the European crisis. The general scenario of the world economy is very
critical. It is the banking rules and regulation framework of India which has
prevented it from the world economic crisis
STRUCTURE OF INDIAN BANKING INDUSTRY
Banking Industry in India functions under the sunshade of Reserve Bank of India -
the regulatory, central bank. In India the banks are being segregated in different
groups. Each group has their own benefits and limitations in operating in India. Each
has their own dedicated target market. Few of them only work in rural sector while
others in both rural as well as urban. Many even are only catering in cities. Some are
of Indian origin and some are foreign players.
33
Banking System in India
Reserve bank of India (Controlling Authority)
Development Financial institutions Banks
IFCI IDBI ICICI NABARD NHB IRBI EXIM Bank

SIDBI
Commercial Regional Rural Land Development Cooperative
Banks Banks Banks Banks
Public Sector Banks Private Sector Banks
SBI Groups Nationalized Banks Indian Banks Foreign Banks
Banking Industry mainly consists of:
• Commercial Banks
• Co-operative Banks
34
SCHEDULED BANKS IN INDIA
(1) Scheduled Commercial Banks
Public Sector Private Sector Foreign Banks In Regional Rural

Banks Banks India Banks
(26) (25) (29) (95)
❖ Nationalized ❖ Old Private

Bank Banks
❖ Other Public ❖ New Private
Sector Banks Banks
(IDBI)
❖ SBI And Its
Associates
(2) Scheduled Cooperative Banks
Scheduled Urban Cooperative Scheduled State Cooperative Banks

Banks
35
Public Sector Banks
Public sector banks are those banks which are owned by the Government. The Govt.
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6
banks were also nationalized. Therefore in 1980 the number of nationalized bank 20.
At present there are total 26 Public Sector Banks in India (As on 26-09-2009). Of
these 19 are nationalized banks, 6(STATE BANK OF INDORE ALSO MERGED
RECENTLY) belong to SBI & associates’ group and 1 bank (IDBI Bank) is
classified as other public sector bank. Welfare is their primary objective.Almost 80%
of the business are still controlled by Public Sector Banks (PSBs). PSBs are still
dominating the commercial banking system. Shares of the leading PSBs are already
listed on the stock exchanges
36
Nationalised banks Other SBI & its Associates

Public
• Allahabad Bank
Sector
• Andhra Bank
• State Bank of India
Banks
• Bank of Baroda
• Bank of India
• Bank of • State Bank of Hyderabad
IDBI
Maharashtra
(Industrial
• Canara Bank
Development • State Bank of Mysore
• Central Bank of
Bank of
India
India) Ltd. • State Bank of Patiala
• Corporation Bank
• Dena Bank
• Indian Bank • State Bank of Travancore
• Indian Overseas
Bank • State Bank of Bikaner And
• Oriental Bank of Jaipur
Commerce
• Punjab & Sind Bank
• Punjab National
Bank
• Syndicate Bank (State Bank of Saurastra merged
• UCO Bank with SBI in the year 2008 and State
• Union Bank of India Bank of Indore in 2010)
• United Bank of
India
• Vijaya Bank
37
Private Sector Banks
The RBI has given licenses to new private sector banks as part of the liberalisation
process.
These banks are owned and run by the private sector. Various banks in the country
such as ICICI Bank, HDFC Bank etc. An individual has control over their banks in
preparation to the share of the banks held by him.
Private banking in India was practiced since the beginning of banking system in
India. The first private bank in India to be set up in Private Sector Banks in India
was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in
India. IDBI ranks the tenth largest development bank in the world as Private Banks
in India and has promoted world class institutions in India.
The first Private Bank in India to receive an in principle approval from the Reserve
Bank of India was Housing Development Finance Corporation Limited, to set up a
bank in the private sector banks in India as part of the RBI's liberalization of the
Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank
Limited with registered office in Mumbai and commenced operations as Scheduled
Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India
was incorporated in the year 1930
Private sector banks have been subdivided into following 2 categories: -
38
Old Private Sector Banks New Private Sector Banks
• Bank of Rajasthan Ltd.

• Catholic Syrian Bank Ltd. • Bank of Punjab Ltd. (since
• City Union Bank Ltd. merged with Centurian Bank)
• Dhanalakshmi Bank Ltd. • Centurian Bank of Punjab
• Federal Bank Ltd. (since merged with HDFC
• ING Vysya Bank Ltd. Bank)
• Jammu and Kashmir Bank • Development Credit Bank Ltd.
Ltd. • HDFC Bank Ltd.
• Karnataka Bank Ltd. • ICICI Bank Ltd.
• Karur Vysya Bank Ltd. • IndusInd Bank Ltd.
• Lakshmi Vilas Bank Ltd. • Kotak Mahindra Bank Ltd.
• Nainital Bank Ltd. • Axis Bank (earlier UTI Bank)
• Ratnakar Bank Ltd. • Yes Bank Ltd.
• SBI Commercial and
International Bank Ltd.
• South Indian Bank Ltd.
• Tamilnad Mercantile Bank
Ltd.
• United Western Bank Ltd.
39
Foreign Banks in India
Foreign banks have been operating in India for decades with a few of them having
operations in India for over a century. The number of foreign bank branches in
India has increased significantly in recent years since RBI issued a number of
licenses - well beyond the commitments made to the World Trade Organisation.
The presence of foreign banks in India has benefited the financial system by
enhancing competition, resulting in higher efficiency. There has also been transfer
of technology and specialised skills which has had some "demonstration effect" as
Indian banks too have upgraded their skills, improved their scale of operations and
diversified into other activities. At a time when access to foreign currency funds
was a constraint for the Indian companies, the presence of foreign banks in India
enabled large Indian companies to access foreign currency resources from the
overseas branches of these banks. Also, with the presence of foreign banks, as
borrowers in the money market and their operation in the foreign exchange market
has resulted in the creation and deepening of the inter-bank money market. Now, it
is the challenge for the supervisors to maximize the advantages and minimize the
disadvantages of the foreign banks' local presence
40
• ABN AMRO Bank N.V. • HSBC (Hongkong & Shanghai

• Abu Dhabi Commercial Bank Banking Corporation)
Ltd • JPMorgan Chase Bank
• American Express Bank • Krung Thai Bank
• Antwerp Diamond Bank • Mashreq Bank
• Arab Bangladesh Bank • Mizuho Corporate Bank
• Bank International Indonesia • Oman International Bank
• Bank of America • Shinhan Bank
• Bank of Bahrain & Kuwait • Société Générale
• Bank of Ceylon • Sonali Bank
• Bank of Nova Scotia • Standard Chartered Bank
• Bank of Tokyo Mitsubishi • State Bank of Mauritius
UFJ
• Barclays Bank
• BNP Paribas
• Calyon Bank
• ChinaTrust Commercial Bank
• Citibank
• DBS Bank
• Deutsche Bank
41
Cooperative banks in India
The Cooperative bank is an important constituent of the Indian Financial System,

judging by the role assigned to cooperative, the expectations the cooperative is
supposed to fulfil, their number, and the number of offices the cooperative bank
operate. Though the cooperative movement originated in the West, but the
importance of such banks has assumed in India is rarely paralleled anywhere else
in the world. The cooperative banks in India plays an important role even today in
rural financing. The businesses of cooperative bank in the urban areas also has
increased phenomenally in recent years due to the sharp increase in the number of
primary co-operative banks.
Cooperative Banks in India are registered under the Co-operative Societies Act.
The cooperative bank is also regulated by the RBI. They are governed by the
Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act,
1965.
Rural banks in India
Rural banking in India started since the establishment of banking sector in India.
Rural Banks in those days mainly focused upon the agro sector. Regional rural
banks in India penetrated every corner of the country and extended a helping hand
in the growth process of the country.
SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of SBI
is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh
to North East. The total number of SBIs Regional Rural Banks in India branches is
2349 (16%). Till date in rural banking in India, there are 14,475 rural banks in the
country of which 2126 (91%) are located in remote rural areas.
Apart from SBI, there are other few banks which functions for the development of
the rural areas in India. Few of them are as follows.
42
Haryana State Cooperative Apex Bank Limited

The Haryana State Cooperative Apex Bank Ltd. commonly called as
HARCOBANK plays a vital role in rural banking in the economy of Haryana State
and has been providing aids and financing farmers, rural artisans, agricultural
laborer’s, entrepreneurs, etc. in the state and giving service to its depositors.
NABARD
National Bank for Agriculture and Rural Development (NABARD) is a
development bank in the sector of Regional Rural Banks in India. It provides and
regulates credit and gives service for the promotion and development of rural
sectors mainly agriculture, small scale industries, cottage and village industries,
handicrafts. It also finances rural crafts and other allied rural economic activities to
promote integrated rural development. It helps in securing rural prosperity and its
connected matters.
Sindhanur Urban Souharda Co-operative Bank

Sindhanur Urban Souharda Co-operative Bank, popularly known as SUCO BANK
is the first of its kind in rural banks of India. The impressive story of its inception
is interesting and inspiring for all the youth of this country.
United Bank of India
United Bank of India (UBI) also plays an important role in regional rural banks. It
has expanded its branch network in a big way to actively participate in the
developmental of the rural and semi-urban areas in conformity with the objectives
of nationalisation.
43
Syndicate Bank
Syndicate Bank was firmly rooted in rural India as rural banking and have a clear
vision of future India by understanding the grassroot realities. Its progress has been
abreast of the phase of progressive banking in India especially in rural banks.
Industry Segments
44
Current trend in banking
Currently banking in India is generally fairly mature in terms of supply, product

range and reach-even though reach in rural India still remains a challenge for the
private sector and foreign banks. In terms of quality of assets and capital adequacy,
Indian banks are considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. The Reserve Bank of
India is an autonomous body, with minimal pressure from the government. The
stated policy of the Bank on the Indian Rupee is to manage volatility but without
any fixed exchange rate-and this has mostly been true. With the growth in the
Indian economy expected to be strong for quite some time especially in its services
sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong. One may also expect M&As,
takeovers, and asset sales. Currently, India has 88 scheduled commercial banks
(SCBs) - 28 public sector banks (that is with the Government of India holding a
stake), 29 private banks (these do not have government stake; they may be publicly
listed and traded on stock exchanges) and 31 foreign banks. They have a combined
network of over 53,000 branches and 17,000 ATMs.
According to a report by ICRA Limited, a rating agency, the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.
45
Growth trends
The growth of banking in the coming years is likely to be more qualitative than
quantitative, according to the report. Based on the projections made in the "India
Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the
report forecasts that the pace of expansion in the balance-sheets of banks is likely
to decelerate
The Indian banking market is growing at an astonishing rate, with assets expected
to reach US$1.5 trillion by 2014. An expanding economy, middle class, and
technological innovations are all contributing to this growth. The country’s middle-
class accounts for over 352 million people. In correlation with the growth of the
economy, rising income levels, increased standard of living, and affordability of
banking products are promising factors for continued expansion. The Indian
banking Industry is in the middle of an IT revolution, focusing on the expansion of
retail and rural banking. Players are becoming increasingly customer-centric in
their approach, which has resulted in innovative methods of offering new banking
products and services. Banks are now realizing the importance of being a big
player and are beginning to focus their attention on mergers and acquisitions to
take advantage of economies of scale and/or comply with Basel II regulation.
Indian banking industry assets are expected to reach US$1.5 trillion by 2014 and
are poised to receive a greater infusion of foreign capital. The banking industry
should focus on having a small number of large players that can compete globally
rather than having a large number of fragmented players.
46
Technology in Banking
In the six decades of independence banking has evolved in four different phases.
During the fourth phase important initiatives were taken with regard to improve the
banking system. The entry of foreign banks resulted in a paradigm shift in the way
banking was done in India. The arrival of foreign banks and private banks with
their superior state of the art technology pushed the Indian banks to adopt latest
technology in market, so that they could retain their customer base.
Information technology has been used under two different avenues in banking. One
is communication and connectivity and other is Business process reengineering.
Information technology enables sophisticated product development, better market
infrastructure, implementation of reliable techniques for control of risks and help
the financial intermediaries reach geographically distant and different market.
In India banks as well as other financial entities entered the world of information
technology and with Indian financial network (INFINET). INFINET, a wide area
satellite network (WAN) using VSAT (very small aperture technology) was jointly
set up by Reserve Bank of India and Institute for Development and research for
banking in1999. INFINET which was initially comprised only public sector banks
was opened for participation by other categories of members. The information
technology act 2000 has given legal recognition for creation, transmission, and
retention of electronic data to be treated as a valid proof in the court of law
The Reserve Bank of India has assigned priority to the up gradation of technology
in the banks. Substantial progress has been made for developing a modern,
efficient, integrated and secure payment and settlement system for the financial
service sectors. Modernization of clearing and settlement system through MICR
based cheque clearing, popularizing electronic clearing services (ECS) and
47
integration of RBI-EFT scheme with funds transfer schemes of bank, introduction

of centralized fund management system (CFMS) are significant milestones in this
regard.
The coverage of electronic clearing services has been significantly effective to

encourage non-paper-based fund and develop a centralized facility for effective
payment. The scheme for electronic fund transfer operated by the reserve bank has
been augmented and now it is present in 13 cities. The centralized fund
management system (CFMS) which would enable banks to obtain account wise
and centre wise position of their balances has been implemented in a phased
manner from November 2001.
Membership of INFINET has been opened to all the banks in addition to those in
the public sector banks. At the base of all the interbank message transfers using the
INFINET is the structured financial messaging system (SFMS). It would serve as a
secure communication carrier with templates for intra and interbank messages in a
strict message format that will facilitate straight through messaging. All the
interbank messages will be stored and switched to central hub at Hyderabad while
the intra bank messages will stored in the bank gateway. Security standards of
SFMS will match the international standards.
Information technology has immense untapped potential in banking. Strengthening

the information technology in banks could improve the effectiveness of asset
liability of banks. Building up of a related data base would strengthen and enhance
the forecasting of liquidity of banks at the branch level. This could enhance the risk
management capabilities of banks.
48
Legal/ Regulatory Issues Related to Banking
Banks works under various legal frameworks most important of them are, the
Banking regulation act 1949, Basel II norms, RBI act, Negotiable Instruments act.
Banking Regulation Act 1949
The banking regulation act was passed as banking companies act and it came into
force in 16/3/49. Subsequently it was changed to Banking regulation act on 1/3/66.
BASEL II Norms
Basel II is the second of the Basel accords which are recommendation on the
banking laws and regulations issued by banking committee on banking
supervision. The purpose of Basel II norms is to create international standards that
banking regulators can use when creating regulations about how much capital does
banks needs to put aside to guard against the types of financial and operational
risks banks face. Advocates of Basel II believe that such an international system
can help protect the international financial system from many types of problem that
arise should a bank or a series of banks collapse. In practice Basel II attempts to
accomplish this by setting up rigorous risks and capital management requirement
designed to ensure that the banks hold capital reserves appropriate to the risks the
banks expose itself to through its investment and lending practices. Generally
speaking this rule says that the greater the risk the bank exposes itself, the greater
the capital bank requires to safeguard its solvency and overall economic stability.
49
Opportunities and Challenges for Players
The bar for what it means to be a successful player in the sector has been raised.
Four challenges must be addressed before success can be achieved. First, the
market is seeing discontinuous growth driven by new products and services that
include opportunities in credit cards, consumer finance and wealth management on
the retail side, and in fee-based income and investment banking on the wholesale
banking side. These require new skills in sales & marketing, credit and operations.
Second, banks will no longer enjoy windfall treasury gains that the decade-long
secular decline in interest rates provided. This will expose the weaker banks. Third,
with increased interest in India, competition from foreign banks will only intensify.
Fourth, given the demographic shifts resulting from changes in age profile and
household income, consumers will increasingly demand enhanced institutional
capabilities and service levels from banks.
50
Chapter 3
Study of the Project
Source:
Customer can get information on company’s finance schemes in various ways

mentioned below:
1. Company’s DMA (Direct Marketing Associates).

2. At dealer point- they are associated with most dealers in city and have a
representative who will give the information on their finance schemes and
other services. The representatives will be present at the KMPL counter or can
be approached through the dealer representatives.
Then DMA of the company provide leads to the company on the basis of which they
get Payout of 3.5%. Company asks some proof of the customer like, PAN Card,
Aadhar Card and various other details to check the CIBIL score of the customer to
know the credit worthiness of the customer.
51
Below is the Format of the CIBIL:
After filling all the details of the customer in the CIBIL format then this format is
to upper department to check the CIBIL score.
After getting CIBIL score of the customer from the upper department the file is
further processed if CIBIL score is 750 or 750+ then it is to meant as excellent
score if CIBIL score is less than 650 then it is to be meant as poor score. If the
score is very poor then case is rejected at that point of time only. The reason for
low CIBIL score is that customer has already taken loan from other financial
institution and he/she is unable to pay his/her dues at time. If score is good then file
52
is further processed on the basis of the CIBIL score if CIBIL score is more than
750 than Field Investigation of the customer is waived off. If the score is less than
750 then the Field Investigation is made by the company to know the goodwill of
the customer in his region and from his neighbors. On the basis of the references
given by the neighbors the Field Investigation is marked positive or negative. If
Field Investigation is negative then case is rejected at the same point of time but
there are few reasons if the FI is negative on the basis of this reasons then we
accept the case the reasons are:
• Customer is Police Officer

• Customer has Political Link
• Customer is Kewal Operator
• Customer doing business of Ecommerce
• Customer doing business of Immigrants, Etc.
If FI is positive than case is further processed, we contact the DMA of the

customer for further document to take get the approval from Credit department.
There are two types of case:
• Income proof case

• Non-Income proof case
The list of documents for both the case are different as below:
Income Proof case:
• If Businessman Income Tax Return of past three years (Return gap must be
of 6 Months)
53
• If Salaried Customer Then Form 16 is required

• PAN card, Aadhar Card
• Bank Statement of past 6 Months
• If earlier loan is taken then track statement of that loan
• Car RC
Non-Income Proof Case: If Businessman no Income Tax return, Agriculture

business.
• Co Applicant is must that to in blood relation

• PAN Card, Aadhar card of applicant and Co applicant
• If agriculture business Fard of the land
• Bank Statement of past 6 Months
• J Form
After collecting all these documents case is further processed, then IBB of the car
is calculated to know the market price of the car to be taken by our customer so
that accordingly we can ask loan from our credit department team.
After calculating IBB of the car then CAM is prepared in CAM be fill the details
of the customer and the details of the customers car and the % of the amount to be
provided as a loan after approval. The details of banking, Income tax return and
many more details are filled in CAM. With the help of which we get to know the
Score of the Brain Matrix and the Asset risk score to the company. Below is the
Format Of CAM:
54
55
After preparing of CAM we need to right a mail to the Credit department for the
Approval of the case. We need to Present a case in such a way that each and every
thing to them must be transparent. Each and every document is to be attached
along with the mail so that they cannot deny to approve our case.
After rechecking of all the documents by credit department and verifying them by
various methods then are case is registered in the core and our case is approved by
them. They also mention the amount of approval on the basis of verification of
various documents amount of approval may be less than the amount sent for
approval.
After getting approval from credit department, then we need to take printout of the
sanction report from the LOS. In sanction each and everything is mentioned
amount of loan, maturity period, case approved by whom etc. below is the
56
screenshot of the CORE and LOS:
Login ID of permanent employee is given to me to use the both the system CORE
& LOS.
57
After doing all these things the case is further processed. Now there is a process of
disbursement of the amount into the customer or DMA’s account.
For disbursement of the amount we need to get various documents to be filled and
signed by our customer. Various documents are:
• Loan agreement kit

• Stamp paper of Rs 550 (Loan agreement)
• Document charges letter (DCR)
• Cancellation letter
• Loan confirmation letter
• RTGS letter
• Reference form
• CLI (Insurance)
• Sign verification (SV)
• RTO letter
• Car Valuation
• Crime report
• 8 Blank Cheques
Format of all the documents are attached in the Annexure below.
After getting all the completed documents from the customer then a matrix is
prepared in which we able to find the interest rate going to charge from customer
and the payout paying to the DMA. In Matrix we also do the CLI (Insurance) the
amount of the CLI is included in the EMI in matrix the start date and end date of
EMI is also mentioned. The rate of interest which company earns after deducting
all the charges from the rate of interest charged from the customer and also
58
deducting the payout of the DMA/Dealer. The format of the matrix is attached
below:
After getting all the documents from the customer then the file is compiled and
sent to the operation department for the disbursal of the payment in the DMA or
customers account. The file is further checked and verified by the operation
department if all the documents are complete and verified by the operation
59
department then the amount is disbursed to customer or DMA’s account. If the file
is not completed and verified properly then operation department asks the
incomplete documents from sales department.
After disbursement of the payment there is the duty of the collection comfort to
take follow up and ask for the EMI payment on time. The first two EMI is to be
taken through the check which is collected earlier and all the remaining payments
is to be deducted from the customers account automatically through Electronic
Clearing Service (ECS).
60
Chapter 4
Finding & Recommendation
The study helped to understand the working style of KMPL. The company facilitates
its business through its various departments. It was understood that the
departmentalization at KMPL is very apt and its one of the core factors that
facilitates the functioning of their business activities. The crux of the company’s
structure is undoubtedly their perfect bonding with customers and employees. It was
also seen that the company is offering very healthy and friendly services to their
customers. The organization do hold a separate wing for their customers which
always keeps in touch with their customers. The organization has a separate wing
for their customers itself. Apart from the customer care, the company provides a
good and friendly working environment for their employees. The Human Resource
department is very active in the organization. The employees are free to approach
their department heads at times of any emergencies and can also give their
suggestions to the management which will accepted for sure if it supports the status
on demand. The focus on the betterment of the customers and employees is the
forcing factor that keeps the company and their employees and customers together
forever resulting in the prosperity of the business both in terms of profitability and
61
satisfaction. The opportunities of the company involve the changing lifestyle of the
people. The people in the current society, especially the young generation is now
demanding a better lifestyle in which owning an automobile is a vital part. The
company must utilize this opportunity and introduce attractive options to their
customers. The company has a lot of challenges on its way, wherein the competitor’s
challenge forms the major part. The major competitors are the HDFC bank and ICICI
bank. Its recommendable to the company to focus more on the statistical methods to
mitigate and overcome these challenges like the trend analysis and moving averages
to identify the trend of automobile sales. It is a fact that the company is doing its best
to incorporate all its strengths and that is the main reason that made the company to
fit into the list of the BEST TOP 10 AUTOMOBILE FINANCE COMPANIES in
India.
62
Annexure 1
All the documents are attached required in the file:
Cancellation Letter
63
CLI Form (Insurance)
64
Documentation Charges Letter
65
Loan Confirmation Letter
66
RTGS Form
67
RTO record Updation Request Letter
Reference Form
68
Signature Verification Format
69
Disbursement Memo
70

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KOTAK MAHINDRA PRIME LTD.

Summer Internship Project Report

“Evaluation of Loan Proposals”

in the partial fulfillment of the Degree of

Master of Business Administration

[Roll No: 501704039]

Under the Guidance of

Mr. Gulshan Rupal (Manager)

(Kotak Mahindra Prime Ltd.)

L.M. Thapar School of Management

(Thapar University, Patiala)

Dera-Bassi Campus, Mohali – 140507

I confirm that a project work is undertaken by me is an original authentic work

The content of this report is based on the information collected by during my

(Dr. Karminder Ghuman)

Thapar Institute of Engineering & Technology,

I wish to place on records, my deep sense of gratitude and sincere appreciation to

I am grateful to all my college facilitators, who guided and motivated me on every

• To work with an eminent Bank and to get a taste of corporate life.

Name of the Topic Page No.

Chapter 1 Introduction 9–28

Chapter 2 Industry Analysis 29-50

Chapter 3 Study of the Project 51-60

Chapter 4 Finding and Recommendation 61-62

Kotak Mahindra Prime limited (KMPL) is a subsidiary of Kotak Mahindra Bank

About Kotak Mahindra Group

Established in 1985, Kotak Mahindra Group is one of India's leading financial

Our Corporate Identity

Mr. Uday Kotak (Chairman)

Highlights of the Company

The existing major competitors in the car finance are:

▪ Reliance Capital Limited.

▪ It is a profit centre of KMPL.

The vision of KMPL is:

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

CERTIFICATIONS, AWARDS AND RECOGNITIONS

• ICAI Award: Excellence in Financial Reporting under Category 1 -

• Euro money: Best Private Banking Services (overall), 2009

• ICRA Mutual Fund Awards 2009

International Asset Management:

• Global Investor (Editorial Award)

• IBA Banking Technology Awards

VARIOUS FINANCIAL SCHEMES PROVIDED BY KMPL

MARGIN MONEY SCHEME:

LOW EMI BALLOON SCHEME:

ADVANCE EMI SCHEME:

7 SIMPLE STEPS TO OWING A CAR ACCORDING TO KMPL

❖ Finance on the widest range of new and pre-owned cars.

STEP: 1 GETTING INFORMATION:

Customer can get information on company’s finance schemes in various ways

a. Company’s DMA (Direct Marketing Associates).

STEP: 2 RECEIVING THE KMPL OFFER:

Company offer tailor made schemes based on customer’s need.

• Margin money scheme.

STEP: 4 CREDIT EVALUATIONS:

STEP: 5 PROCESSING OF FINANCE:

STEP: 6 DELIVERY OF CAR:

STEP: 7 RECEIVING AGREEMENT AND RE-PAYMENT SCHEDULE:

SOMETHING ABOUT KMPL’S CAR LOAN APPLICATION FORM

2. Type of contract:It can be hire purchase, lease, and loan.

VEHICLE AND FINANCE DETAILS

1. a. full name of applicant.

b. mother’s maiden name (individual only).