Declaration

I, the undersigned, SEJAL K. KOTHARI, a student of T.Y.BBA., hereby declare that the project work presented in this project is my own work and has been carried out under the supervision of Prof. Ruchir Pandya, Lt. M. J. Kundaliya College, Rajkot. This project report is entirely an outcome of my own efforts and is not submitted, either in part or in whole, to any other University or Institute for any examination.

Date: Place: -

Signature of the Student, ____________________ . (Sejal K. Kothari.) Signature of the Supervisor, _____________________. Signature of the Principal,
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_____________________.

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Acknowledgement
I am a student of T.Y.BBA., studying in Lt. M. J. Kundaliya College, Rajkot. As a student, the syllabus of BBA includes practical visits to the industrial units in its study. It plays a crucial role in the practical management studies and is considered of similar importance as the theoretical subjects. I acknowledge my indebt ness primarily to the Branch Head of Kotak Mahindra Bank, Mr. D. Gadhvi, who allowed me to do this final project and provided me the golden opportunity to study its practical management of Kotak Bank. I thank the staff members of the bank for imparting me the knowledge in the field of banking. I am thankful to Mr. S. Tejura - Manager (Sales), Mr. H. Raval (Relationship officer), and Mr. B. Vyas (Senior Executive-Sales). I express my gratefulness to Prof. Ruchir Pandya, a constant source of inspiration, a guiding force to complete this project. I am also thankful to Prof. Padhiyar, the Principal, for the encouragement during the preparation of the project. Herewith, I submit my Project Report, which is purely based on the available information
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and data, hoping it will be consistent enough to study. With Regards, Yours Sincerely, Sejal K. Kothari.

Preface
Today as we all know that the banking field is full of stiff competition. And now a days all the banks has began to offer one or other type of services to its account holders. Banking has been my interest of field from the beginning. So at this moment I have got this opportunity to prepare this report on the bank. Bank charges have been of much importance from both Bank's and Account holder's point of view. It is difficult to cover up all the fields so I have taken in to account the fields which I found of interest. For each and every bank, whether privatized or nationalized, the bank service

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charges are of much importance. The bank follows that charges as per the boundaries given by RBI.

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Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.

Executive Summary Industry Profile Early history of Banking Types of Banks Company Profile Journey So Far Key Group Of Companies Board Of Directors Organizational Chart Retail Banking Investment Services Convenience Banking Loans The Press Room The Study Tables & Graphs of Service Charges Brief Analysis Limitations of the Study Conclusion Bibliography
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Executive Summary
For every bank the service charges are of utmost importance. Herewith, I have tried to compile the service charges of HDFC Bank, IDBI Bank, UTI Bank and the Union Bank of India (Nationalized), along with the detailed analysis of those charged by the Kotak Mahindra Bank. Ive tried to list out the comparison amongst them along with graphical views so that it is easier to compare the charges non-verbally. This project report also gives brief information of the other companies under Kotak and their activities.

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INDUSTRY PROFILE

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Early History of Banking

As early as 2000 B.C., the Babylonians had developed a banking system. There are evidences by the archeological department to show that the temples of Babylon were used as banks. After a period of time, there was a spread of irreligion, which soon destroyed the public sense of security in depositing money and valuable in temples. The priests were longer acting as financial agents. The Romans did minute regulations, as to conduct private banking and to create confidence in it. Loan banks had also become common in Rome. From these Banks the poor citizens received loans without paying interest, against security of land for 3 or 4 years. During the early periods, although private individuals mostly did the banking business, many countries established public banks either for the purpose of facilitating commerce or to serve the government. However, upon the revival of civilization, the growing necessity forced the issue in the
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middle of the 12th century and banks were established at Venice and Genoa. The Bank of Venice established in 1157 is supposed to be the most ancient bank. Originally, it was not a bank in the modern sense, but simply an office for the transfer of the public debt. Again the origin of modern banking may be traced to the money dealers in Florence, who received money on deposit, and were lenders of money in the 14th century and thereafter in 1349, the business of banking being carried on by drapers of Barcelona. In India, as early as the Vedic Period, banking, in its most crude form, existed. The books of Manu contain references regarding deposits, pledges, policy of loans, and rate of interest. However, banking in those days largely meant money lending and people did not know the complicated mechanism of modern banking. This is true, not only in the case of India, but also for other countries. Although, the business of banking is as old as authentic history, banking institutions have, since then changed
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substantially, in character and content. They have developed, from a few simple operations involving the satisfaction of a few individual wants, to the complicated mechanism of modern banking, involving the satisfaction of the common masses as well as the corporate world and thus providing the very life blood of commerce.

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The Origin of Word Bank

The word 'Bank' itself is derived from the French word 'Bancus' or 'Banque'. However, there are opinions that the word 'Bank' is originally derived from the German word 'Back' meaning joint, which was Italianized into 'Banco'.

Status Wise Bifurcation of Banks: Scheduled Banks. Non-Scheduled Banks.

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 Scheduled Banks: In the first schedule, Government of India notifies the Primary Banks, which are licensed and whose demand and time liability are not less than Rs. 50 crores, in 1987. The Government of India notifies the Primary banks, which are licensed and whose demand and time liability are not less than Rs. 100 crores can only qualify to be included in the second schedule since 1993. A bank becomes scheduled when it fulfils the followings: - 'A' grade rating from RBI - Demand and Time Liability over 100 Crores - Satisfies the RBI guidelines related to CRR and SLR

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Merits of Being a Scheduled co-operative are described below: - The RBI would provide Re-discounting facility at nominal rate - The RBI gives remittance facility at par The demerit of being a scheduled cooperative bank is that the bank will not get subsidy @ 0.5% from the RBI. The conferment of the scheduled status of the banks has certain advantages like re-finance facility, direct industrial finance from The Reserve Bank of India, availing The Reserve Bank of India Remittance facility scheme, acceptance of deposits from local bodies, quasi-government organization, religious, and charitable institutions, guarantees and cheques issued by Banks being accepted by Government Departments. At the same time, it casts greater responsibility for the banks in the maintenance of books of accounts and submission of returns. Non-Scheduled Bank: .. 14 ..

The banks, which are not applicable as per the criteria of Scheduled Banks, are called Nonscheduled Banks. These are very small banks.

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Types of Banks: 1. Reserve Bank of India 2. Nationalized Bank

3. State Bank Group 4. Co-operative Bank 5. Private Bank 6. Foreign Bank 7. Regional Rural Banks

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1. Reserve Bank of India

The Hilton-young commission, appointed in 1926, has recommended the necessity of a centrally empowered institution, to have an effective control over the currency and financial transactions in the country. Accordingly, the Government had then passed Reserve Bank of India Act, 1934 and established the Reserve Bank of India with effect from 1st April 1935. The principle aim behind this was to organize proper control over the currency management in the interest of country benefits and to maintain financial stability. With this, the RBI mainly looks after the following important functions:

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Functions of RBI:a. To keep effective control over creation of credits and currency supply. b. To control the Banking transactions of Central and State Governments. c. To act as Central Administrative Authority of all other Banks in the Country. d. To organize control over Foreign Currency Transaction. e. To assist for improvement in financial aspects of the country.

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2.

Nationalize Banks: -

The Banking Company Act was established in July, 1969, by the nationalization of 14 major banks of India. The cent percent ownership of these banks is with the Government of India.

3. State Bank Group: The State Bank of India was established under the State Bank of India Act, 1955, and the subsidiary banks were established under the State Bank of India (subsidiary Banks) Act, 1959. The Reserve Bank of India owns the State Bank of India, to a large extent, and the rest of the part is of private ownership in the share capital of State Bank of India. The State Bank of India owns the subsidiary Bank.

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4. Private Banks: These banks are registered under The Companys Act, 1956. Basic difference between cooperative banks and private banks is its aim. Co-operative banks work for its member and private banks work for earn profit. The newly formed Private Banks have lead the market of Indian banking business in a very short period, because of the variety of services provided, the approach of handling the customers requirements, long working hours and the speed of executing the services. They are also registered under the Companys Act, 1956.

5. Foreign Banks: Foreign Bank means multi-countries bank. In case of India, Foreign Banks are such Banks that open its branch office in India and their head office remains outside India.

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6. Regional Rural Banks (RRB): Regional Rural Banks have been included in the Indian Banking Sector since October, 1975. The Government of India in terms of the provision of the Regional Rural Bank Act, 1976, has established these banks. The distinctive feature of the Regional Rural Bank is that though it is a separate body, it is corporate with the Commercial Bank, which has sponsored the proposal to establish it. The Central Government, while establishing a Regional Rural Bank, at the request of a Commercial Bank, shall specify the local limits within which it shall operate. The Regional Rural Bank may establish its branches or agencies at any place within the notified area. For example: The State Bank of Saurashtra sponsors Regional Rural Banks in Saurashtra.

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COMPANY PROFILE

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Company Profile
Kotak Mahindra is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. From Retail Finance to stock Broking, Mutual Funds to Life insurance and investment banking, the company caters to the financial needs of the individual and the corporate world simultaneously. Kotak Mahindra has a consolidated net worth of over INR 1,500 crores and currently employs over 1,500 dedicated professionals in its various businesses. With a presence in over 40 locations in India and with offices in New York, London, Dubai, and Mauritius, the group currently services for over 5,00,000 customers. Kotak Mahindra has international partnerships with Goldman Sachs (The world's leading investment bank and brokerage firm), Ford Credit (The world's largest dedicated automobile financiers) and Old Mutual (A leading insurance, Banking and asset management conglomerate).
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Facts & Figures

Q4 FY2004 TOTAL INCOME

Q3 FY2003

GROWTH (In %)

FY-2004

FY2003

GROWTH (In %)

394.7 3 114.0 5 62.20 10.35

190.72 107%

1,167.7 4 331.08

711.0 0 141.9 6 73.32 12.38

64%

PROFIT BEFORE TAX PROFIT AFTER TAX EPS DILUTED (Rs.)

20.18

465%

133%

9.16 1.55

579% 568%

174.44 29.05

138% 135%

(Rs. In Crores)

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Consolidated income crosses Rs. 1,000 Crores. Consolidated total advances portfolio grew by 53% during FY-2004 to Rs. 4,609 Crores. Portfolio of passenger cars crossed the Rs. 2,200 Crores mark and commercial vehicles portfolio was over Rs. 1,200 crores. Consolidated net NPAs as on March 31st, 2004, were at Rs. 64 Crores constituting 0.14% of net advances. Consolidated book value per share as March 31st, 2004, was Rs. 207(Rs. 178 as on March 31st, 2003). Consolidated earnings per share (diluted) for FY-2004 were Rs. 29.05 as against Rs. 12.38 in FY-2003.

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JOGRNEY SO FAR

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Journey So Far

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Key Group Companies

Kotak Mahindra Bank:The Kotak Mahindra Groups flagship company, Kotak Mahindra Finance Ltd., which was established in the year 1985, was converted into a bank - KOTAK MAHINDRA BANK LTD., in March, 2003, becoming the first Indian company to get converted into a bank. Its banking operations offer a central platform for customer relationships across the groups various businesses. The bank has a presence in the Commercial Vehicles, Retail Finance, Corporate Banking and Treasury and has recently entered the Housing Finance segment.

Kotak Mahindra Capital Company:Kotak Mahindra Capital Company Limited (KMCC), India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI, is a strategic Joint Venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP. KMCC's core business areas include Equity
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Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business.

Kotak Securities:Kotak Securities Ltd., a strategic Joint Venture between Kotak Mahindra Bank Limited and the Goldman Sachs Group, LLP., is one of India's largest brokerage and securities distribution house in India. Over the years Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and retails investor categories with presence all over the country through franchisees and co-ordinators. Kotak Street - the retail arm of Kotak Securities Ltd., offers online (through www.kotakstreet.com) and offline services well-researched expertise and financial products to the retail investors.

Kotak Mahindra Prime:Kotak Mahindra Primus Limited (KMP), is a Joint Venture between Kotak Mahindra Bank Ltd and Ford Credit International Inc.,(USA), formed to
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finance all non-Ford passenger vehicles. KMP is one of the country's leading players in car finance and is focused to financing and supporting automotive and automotive related manufacturers, dealers and retail customers.

Kotak Mahindra Company:-

Asset

Management

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs. 4,000 crores and offers schemes catering to investors with varying riskreturn profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited:Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra
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Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent. Kotak Mahindra's distinguished track record has made it India's first ever company to be converted into a bank.

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Creating banking history

Established in 1984, The Kotak Mahindra group has long been one of India's most reputed financial organizations. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval creates banking history since Kotak Mahindra Finance Ltd. is the first company in India to convert to a bank.

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Board of Directors

MR. K. M. GHERDA MR. UDAY KOTAK

CHAIRMAN EXECUTIVE VICE CHAIRMAN AND MANAGING DIRECTOR

MR. ANAND MAHINDRA MR. CYRIL SHROFF MR. PRADEEP KOTAK DR. SHANKAR ACHARYA MR. SHIVAJI DAM MR. AJAY SONDHI MR. C. JAYARAM MR. DIPAK GUPTA MS. BINA CHANDARANA EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR SECRETARY AND SENIOR VICE PRESIDENT

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Organizational Chart

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Retail Banking
The Kotak Mahindra Bank offers complete solutions that cater and address all the financial requirements, whether of an individual or a firm. From everyday banking to long term investments, its varied services cover it all. This wide range of products is delivered to the customers with a genuine understanding of their specific needs and warm, personalized customer services. Following are the various products offered by the bank along with its brief descriptions.

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Deposits: -

1. Savings A/c: -

Overview: No matter what the customers banking needs are, Kotak Mahindra Bank has an offer that's just right for everyone. The savings accounts offer you attractive returns with personalized banking services. A variety of products offered are, Kotak Edge Savings Account, Kotak Pro Savings Account and Kotak Ace Savings Account. Each product is feature packed ranging from Free Home Banking, Free Access to 6000+ ATMs, Free DDs, Free at -Par Cheque Facility to Free Trading Account & Free Demat Account. The customer can choose the one that suits him the most from the following: -

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a.

Kotak Edge Savings A/c.: -

The customer needs a savings avenue that makes the most of his hard-earned money. The Bank offers him the Kotak Edge Savings Account, armed with Kotak 2-Way Sweep and their entire gamut of Banking Privileges. The feature rich Kotak Edge Savings Account is the ideal way to make money work harder.

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Features: Key Benefits: Attractive Returns: - The Kotak Edge Savings Account combines liquidity of a Savings Account with the attractive returns of a Term Deposit through the unique Kotak 2-Way Sweep benefit.

Kotak Advantages: - The Kotak Edge

Savings account offers various advantages such as, Free Home Banking, Free At-par Cheques, Free Cheque Collection and Free Electronic Fund Transfer.

Convenience Banking: - The Kotak Edge

Savings Account also offers the benefits of convenience banking such as Global Debit Card, Phone Banking, Net Banking, Home Banking, Mobile Banking and Alerts.

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Service Charges
Personalized At-par Cheque Book Account Statement Global Debit Card Global Debit Card Usage Limits - ATM Cash withdrawal - Merchant Establishment ATM Usage Free Quarterly free Free for 1st year Rs 25,000 per day Rs 25,000 per day - Free in all Kotak Mahindra Bank & UTI Bank ATMs - Rs. 25 for cash withdrawal from other banks domestic VISA ATMs - Rs. 15 for balance enquiry in other banks domestic VISA ATMs - Rs. 90 for cash withdrawal from international VISA ATMs - Rs. 15 for balance enquiry in international VISA ATMs Free Rs. 2.50/1000 (minimum Rs. 50)
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Cheque Collection Charges - Branch Locations - Non-Branch Locations

Demand Draft Charges Home Banking - Cash pickup/delivery (Above Rs. 5,000 and up to Rs. 2 Lacs) - Cheque/Instrument pickup/delivery

Rs. 2.50/1000 (minimum Rs. 50) One request free per day One request free per day

b. Kotak Pro Savings A/c: Overview: The customers need a savings avenue that makes the most of their hard-earned money. The bank offers them the Kotak Pro Savings Account, armed with Kotak 2-Way Sweep, as well as an entire gamut of Banking Privileges and userfriendly Convenience Banking facilities. The feature rich Kotak Pro Savings Account is the ideal way to make money work harder.

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Features: Key Benefits: Attractive Returns: - Kotak Pro Savings Account combines liquidity of a Savings Account with the attractive returns of a Term Deposit through the unique Kotak 2Way Sweep benefit. Kotak Advantages: - The Kotak Edge Savings account offers various advantages such as, Free Home Banking, Free At-par Cheques, Free Cheque Collection, Free Demand Drafts and Free Electronic Fund Transfer Pro Privileges: - The Kotak Edge Savings Account also offers some privileges such as, family savings account and free at-home services. Convenience Banking: -The Kotak Edge Savings Account also offers the benefits of convenience banking such as Global Debit Card, Phone Banking, Net Banking, Home Banking, Mobile Banking and Alerts.

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Service Charges: Personalized At-par Cheque Book Account Statement Global Debit Card Global Debit Card Usage Limits - ATM Cash withdrawal - Merchant Establishment ATM Usage Free Quarterly free Free for 1st year Rs 25,000 per day Rs 25,000 per day - Free in all Kotak Mahindra Bank & UTI Bank ATMs - Rs. 25 for cash withdrawal from other banks domestic VISA ATMs - Rs. 15 for balance enquiry in other banks domestic VISA ATMs - Rs. 90 for cash withdrawal from international VISA ATMs - Rs. 15 for balance enquiry in international VISA ATMs Free Rs. 2.50/1000 (minimum Rs. 50) Rs. 2.50/1000 (minimum Rs. 50) One request free per day One request free per day
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Cheque Collection Charges - Branch Locations - Non-Branch Locations Demand Draft Charges Home Banking - Cash pickup/delivery (Above Rs. 5,000 and up to Rs. 2 Lacs)

- Cheque/Instrument pickup/delivery

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c. Kotak Ace Savings A/c: Overview: The customers need a savings avenue that makes the most of their hard-earned money. The bank offers them the Kotak Ace Savings Account, armed with Kotak 2-Way Sweep, as well as an entire gamut of Banking Privileges and userfriendly Convenience Banking facilities. The feature rich Kotak Ace Savings Account is the ideal way to make money work harder.

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Features: Key Benefits: Attractive Returns: - Kotak Ace Savings Account combines liquidity of a Savings Account with the attractive returns of a Term Deposit through the unique Kotak 2Way Sweep benefit. Kotak Advantages: - The Kotak Ace Savings account offers various advantages such as, Free Home Banking, Free At-par Cheques, Free Cheque Collection, Free at-home services, Free Demand Drafts and Free Electronic Fund Transfer Ace Privileges: - The Kotak Ace Savings Account also offers some privileges such as, family savings account and free Demat account, free investment account, free trading account and personal investment advisor Convenience Banking: - The Kotak Ace Savings Account also offers the benefits of convenience banking such as Global Debit Card, Phone Banking, Net Banking, Home Banking, Mobile Banking and Alerts.

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Service Charges:-

Personalized At-par Cheque Book (precarbonated) Account Statement Global Debit Card Global Debit Card Usage Limits - ATM Cash withdrawal - Merchant Establishment ATM Usage Cheque Collection Charges - Branch Locations - Non-Branch Locations Demand Draft Charges Home Banking - Cash pickup/delivery (Above Rs. 5,000 and up to Rs. 2 Lacs) - Cheque/Draft pickup/delivery

Free Monthly free Free for life Rs 75,000 per day Rs 50,000 per day Free in all domestic and international VISA ATMs Free Charged Free (up to DDs of Rs. 30 lacs p.a.) One request free per day One request free per day

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2. Current A/c: -

Overview: Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether the customer has a small/ mid size business or an enterprise, spread across multiple locations in the country, he would find a Current Account that's just designed for him. With features ranging from Free Home Banking, Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free Demat Account, you can choose from any of Kotak Edge Current Account, Kotak Pro Current Account and Kotak Ace Current Account.

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a.

Kotak Edge Current A/c.: -

Overview: The customers need a well equipped bank account to keep pace with in all your business endeavors. The bank offers the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and an 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.

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Features:

Key Benefits: Attractive Returns: - The Kotak Edge Current Account combines liquidity of a Current Account with the attractive returns of a Term Deposit through the unique Kotak 2Way Sweep benefit. Business Advantages: - The Kotak Edge Current account offers various business advantages such as, Free Home Banking, Free At-par Cheques, overdraft against Term Deposit, Free Demand Drafts and Free Electronic Fund Transfer Convenience Banking: -The Kotak Edge Current Account also offers the benefits of convenience banking such as Global Debit Card, Phone Banking, Net Banking, Athome services, Mobile Banking and Alerts.

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Service Charges:Personalized Cheque book - First Cheque Book Free (Normal); - Rs. 100 per Cheque Book (50 leaves) for subsequent Cheque Books (Normal); - Rs. 200 per Cheque Book (50 leaves) for subsequent Cheque Books (At-par) Monthly free Rs. 2.50/1000 (Minimum Rs. 50)

Account Statement Cheque Collection Charges (non home branch) Demand Draft Charges - Branch locations - Non Branch locations Home Banking - Instrument pickup - Instrument delivery - Cash pickup/delivery (Above Rs. 5,000 and up to Rs. 2 Lacs) - Daily instrument/cheque pickup (Beat) Global Debit Card Global Debit Card Usage Limits - ATM Cash withdrawal - Merchant Establishment

- Free - Rs. 2.50/1000 (Minimum Rs. 50)

- Rs. 25 - Rs. 25 - Rs. 100 - Rs. 500 p.m.

Free for 1st year - Rs 25,000 per day - Rs 25,000 per day

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ATM Usage

- Free in all Kotak Mahindra Bank & UTI Bank ATMs - Rs. 25 for cash withdrawal from other banks domestic VISA ATMs - Rs. 15 for balance enquiry in other banks domestic VISA ATMs - Rs. 90 for cash withdrawal from international VISA ATMs - Rs. 15 for balance enquiry in international VISA ATMs

b. Kotak Pro Current Account: Overview: The customers need a well equipped bank account to keep pace with in all your business endeavors. The bank offers the Kotak Pro Current Account, armed with Kotak 2-Way Sweep and an entire gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Pro Current Account is the ideal way to make money work harder.

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Features:

Key Benefits: Attractive Returns: - The Kotak Pro Current Account combines liquidity of a Current Account with the attractive returns of a Term Deposit through the unique Kotak 2-Way Sweep benefit. Business Advantages: - The Kotak Pro Current account offers various business advantages such as, Free Home Banking, Free At-par Cheques, Free cheque collection, Free Demand Drafts and Free Electronic Fund Transfer. Pro Privileges:- The Kotak Pro Current Account also offers its customers certain privileges such as, Family Savings A/c, Free Cheque- pickup, Free at-home services, Convenience Banking: -The Kotak Pro Current Account also offers the benefits of convenience banking such as Global Debit Card, Phone Banking, Net Banking, Mobile Banking and Alerts.

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Service Charges:Personalized At-par Cheque Book (pre-carbonated) Account Statement Cheque Collection Charges - Branch locations - Non Branch locations Demand Draft Charges - Branch locations - Non Branch locations Home Banking - Instrument pickup - Instrument delivery - Cash pickup/delivery (Above Rs. 5,000 and up to Rs. 2 Lacs) - Daily instrument & document pickup (Beat) Global Debit Card Global Debit Card Usage Limits - ATM Cash withdrawal - Merchant Establishment ATM Usage Free for 1st year Rs 25,000 per day Rs 25,000 per day - Free in all domestic VISA ATMs - Rs. 90 for cash withdrawal from international VISA ATMs - Rs. 15 for balance enquiry in international VISA ATMs - Free - One request free per day - One request free per day - One request free per day Free Monthly free - Free- Rs. 2.50/1000 (Minimum Rs. 50) - Free- Free (up to DDs of Rs. 5 lacs per month)

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c.

Kotak Ace Current Account: -

Overview: The customers need a well equipped bank account to keep pace with in all your business endeavors. The bank offers the Kotak Ace Current Account, armed with Kotak 2-Way Sweep and an entire gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Ace Current Account is the ideal way to make money work harder.

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Features: Key Benefits: Attractive Returns: - The Kotak Ace Current Account combines liquidity of a Current Account with the attractive returns of a Term Deposit through the unique Kotak 2-Way Sweep benefit. Business Advantages: - The Kotak Ace Current account offers various business advantages such as, Free Home Banking, Free At-par Cheques, Free cheque collection, Free Demand Drafts, Free Electronic Fund Transfer and overdraft against Term Deposit. Ace Privileges: - The Kotak Ace Current Account also offers its customers some privileges such as, Free Demat Account, Family Savings Account, Free Chequepickup, Free Investment Account and personal Investment Advisor. Convenience Banking: -The Kotak Ace Current Account also offers the benefits of convenience banking such as Global Debit Card, Phone Banking, Net Banking, Athome Services, Mobile Banking and Alerts.
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Service Charges:Personalized At-par Cheque Book (pre-carbonated) Account Statement Cheque Collection Charges - Branch locations - Non Branch locations Demand Draft Charges - Branch locations - Non Branch locations Home Banking - Instrument pickup - Instrument delivery - Cash pickup/delivery (Above Rs. 5,000 and up to Rs. 2 Lacs) - Daily instrument & document pickup (Beat) Global Debit Card Global Debit Card Usage Limits - ATM Cash withdrawal - Merchant Establishment ATM Usage Free for 1st year Rs 25,000 per day Rs 25,000 per day Free in all domestic & international VISA ATMs - Free - One request free per day - One request free per day - One request free per day - Free- Free (up to DDs of Rs. 30 lacs per month)) Free Monthly free - Free- Re. 1/1000 (Minimum Rs. 50)

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3. Term Deposit: -

Overview: Kotak Mahindra Bank brings you Term Deposit (TD) at highly attractive interest rates coupled with special facilities like Overdraft (OD), Re-investment option etc. What's more, with no penalty for premature withdrawal, you have maximum liquidity available on your TDs.

Key Features: Tenure: - Wide range of Term Deposit tenures from 7 days to 5 years. Amount: - Minimum Term Deposit amount for new customers: Rs 25,000 and for existing relationships: Rs. 10,000 Scheme: - Choose the Re-Investment option to get interest on interest or seek simple interest option to get interest at regular intervals. Overdraft: - Avail Overdraft facility of up to 85% of the principal amount on the TD of over 181 days.
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Interest Rates: Term Deposit rates effective from 1st Dec, 2005 (subject to change from time to time)
Maturity periods Less than Rs.15 lacs Senior Citiz en Less Than Rs 15 lakhs Rs.15 lacs and abov e but below Rs.1 crore 4.75 % 5.00 % 5.25 % 5.50 % 5.75 % 6.00 % 6.50 % Senior Citizen Rs 15 Lacs & Above But Below Rs 1 crore 5.00% 5.25% 5.50% 5.75% 6.00% 6.25% Rs.1 crore and above but below Rs.5 crores 5.25 % 5.40 % 5.60 % 5.75 % 5.90 % 6.25 % 6.50 % Greate r than or equal to Rs.5 crores

7-14 days 15-30 days 31-45 days 46-90 days 91-180 days 181 days to less than1 year 1 year and above but less than 2 years 2 years and above but less than 3 years 3 years and above

No Quot e 4.75 % 5.00 % 5.50 % 5.75 % 6.00 % 6.50 %

4.75% 5.00% 5.25% 5.75% 6.00% 6.25%

5.25% 5.40% 5.60% 5.75% 5.90% 6.75%

6.75%

6.75%

6.75%

6.50 %

6.75%

6.50 %

6.75%

6.50 %

6.75%

6.75 %

7.00%

6.75 %

7.00%

6.75 %

6.75%

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upto and inclusive of 5 Years Greater than 5 years

No Quot e

No Quote

No No Quote Quote

No Quote

No Quote

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ACCOUNT PROFILE:

EDGE SAVINGS a/c Rs. 10,000 CURRENT a/c Rs. 25,000

PRO Rs. 20,000 Rs. 50,000

ACE Rs. 75,000 Rs. 25,000

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Investment Services
Overview: The Kotak Mahindra Bank recognizes that financial needs vary, not just amongst individuals, but across the different stages of life. Years of experience in helping people are put together in an investment portfolio that works best for the customers. From fixed deposits to insurance, mutual funds to Demat accounts - everything is covered. What differentiates them, however, is their emphasis on building enduring relationships. At Kotak Mahindra Bank, it's not about selling many different products it's about working out a holistic, pragmatic solution that addresses the customers financial needs.

.. 61 ..

 Demat: Features: The bank offers streamlined and efficient depository services that allow the customers to hold their shares in convenient, "Demat" formats and leverage opportunities in the stock-market whenever spotted. The Demat services include: Dedicated and trained Customer Care Officer to handle and answer all the queries. Highly competitive service charges. The bank also caters to the debt requirements of companies, including the issue of Commercial Paper, Certificate of Deposits, etc. They also provide a composite Demat account that can hold Equity shares as well as Government Securities, Bonds etc.

.. 62 ..

Charges: Kotak Mahindra Bank, as a Depository Participant with NSDL, caters to a wide cross section of the country's investing population. They have designed tariff plans that address the needs of all categories of investors in the capital market. At one end, they have a general tariff for clients who do not transact too frequently. At the other end of the spectrum, they have schemes for frequent traders with high transactions. Here again they have differential tariffs for different sub-brokers.

.. 63 ..

 Mutual Funds: Overview: Kotak Mahindra Bank also offers services to its customers in the field of mutual funds. Their experienced research team analyses and researches the Mutual Funds available in the market, helping their customers make more informed decisions. Their 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 bank provides assistance at every step of the investment process with their unique offerings such as MF Advisor, MF Analyst and MF Reporter.

.. 64 ..

 Bancassurance: Overview: The Bank offers a range of carefully selected insurance policies across the entire spectrum of life insurance products. The Relationship Managers analyze the customers insurance needs and develop the solution that works best for the same. Kotak Endowment Plan, Kotak Money Back Plan, Kotak Term Plan, Kotak Preferred Term Plan, Kotak Child Advantage Plan, Kotak Retirement Income Plan, Kotak Capital Multiplier Plan, etc. are some of the various services provided by the bank under this segment.

.. 65 ..

Convenience Banking
Overview: In today's day and age time is money. People work hard and have a busy schedule. Doing their banking should be easy and convenient and not add to their worries. The Kotak Mahindra Bank realizes this and have specially tailored a wide range of value added products and services to make their customers money work at its best. These, coupled with the highest standard of customer care will make their life simpler and easier. The bank offers - convenient solutions with a lot of common sense. These include: Net Banking, Phone Banking, Home Banking, ATMs, Global Debit Card, Payment Gateway for Direct Pay and Online Trading, Mobile Banking & Alerts.

.. 66 ..

 Net Banking: Kotak Mahindra Bank's Net Banking service brings the timeless world of instant banking. This is a quick and easy way to access your deposit, Demat and investment accounts 24 hours a day, 7 days a week. The customers can bank from home, work or anywhere in the world by just connecting to the internet. The customers can get free Net Banking access if they have a savings bank account, a current account, a term deposit, a Demat account or an investment account with Kotak Mahindra Bank.

.. 67 ..

 Phone Banking: The bank has a 24Hrs Customer Contact Center to offer you personalized services round the clock. Just pick up the phone and call on 1600 226022. Whether it is something as urgent as a stop payment or you simply want to know your balance just give us a call. Their toll free number gives you access to your account, from anywhere.anytime. And what's more, this facility comes to you absolutely free of cost!

.. 68 ..

 Home Banking: Call 24Hrs Customer Contact Center and request for a cheque, cash pick up, cash delivery or a draft delivery and the representatives of the bank will come to the customers home or office. After all why should the customer come to the Bank when their Bank comes to them? For all requests received between 10 am and 4 pm Mondays to Saturdays the bank will have their representative meet their customers on the same day. Cheques picked up under Home Delivery service will be sent for clearing on the next working day.

.. 69 ..

 ATM Networks: The Banks strategically located and constantly growing ATM network brings the bank within the customers easy reach. The ATM service is available absolutely FREE. The state of the art touch screen Kotak Mahindra Bank ATMs are part of the Visa/Plus ATM network. That means the customers can withdraw cash from the banks ATM Network with International and Domestic Visa/Visa Electron/Plus Credit Cards/Debit Cards. With their special arrangement with UTI Bank, the customers can use your Kotak Mahindra Bank Global Debit Card at over 1775 UTI Bank ATMs absolutely free.

.. 70 ..

 Global Debit Card: Kotak Mahindra Bank Global Debit Card gives its customers the most convenient access to their account any place any time. Now no need to carry cash, just use your Global Debit Card that combines the benefits of a traditional ATM Card access your account 24 hours to withdraw cash at 16000 ATMs in India and over 1 million worldwide and a Credit Card - get the freedom to make purchases at merchant establishments, without the hassles of carrying cash, or the worry of having to remember to pay monthly bills. The purchase will automatically get debited to the customers account online and will reflect in his statement. Also there is no fear of overspending as the customer can only spend up to the balance available in his account. What's more your Global Debit Card has worldwide acceptance at over 24 million merchant establishments (including over 1.88 lacs in India). The Kotak Mahindra Global Debit Card is available if the customer has a savings bank account, current account or NRE account with the bank. The Kotak Mahindra Global Debit Card comes packaged with a host of value added
.. 71 ..

benefits such as, Fuel Surcharge insurance benefits, Add on Cards, etc.

Waiver,

.. 72 ..

 Mobile Banking and Alerts: Kotak Mahindra Bank's Mobile Banking & Alerts service, enables its customers to access their bank account on their Mobile Phone. Using this service they can access their bank account anywhere, anytime! It is quick and easy, available 24X7 and its absolutely free! They dont have to pay any charge to avail this service. The customers can get Mobile Banking & Alerts service if they have a savings bank account or a current account with Kotak Mahindra Bank. There are a whole range of operations that they can carry out using this service, ranging from checking their account balance, to getting their last 3 transaction details, to requesting for a cheque book, to getting an Alert from the Bank when a large debit or a credit happens to their account. Whats more, they can choose whether to receive Alerts on their mobile phone and / or by email.
.. 73 ..

Loans
Personal Loans: Their Quick easy personal loans are called "Jaldi loans and range from Rs. 50,000 to Rs. 10,00,000 for salaried individuals, self-employed professionals such as Doctors, C.A.s, Consultants, Architects, Interior Designers and Businessmen. These loans can be used for anything at all - to renovate your home, for your children's education, to buy a 2 wheeler, go on that well deserved holiday. With Jaldi Loans the bank offers: Minimal paperwork and quick processing ( 1-3 days) Comfortable repayment tenures ranging from 12 to 48 months for salaried individuals and Professionals for self employed businessmen from 12-30 months.

.. 74 ..

 Home Finance: Kotak Mahindra Bank offers a variety of features and a range of options flexible enough to fit the home finance needs. The bank helps in the choice of finance that is right for the customers if he: Is Moving Home - When ready to move to a new home, the bank helps him make the right choice. The speed of financing ensures that the customer moves without a hitch Is a First Time Buyer - If he has never bought a home before, his apprehension is understandable. The bank will guide him through the home-buying process and ensure that he gets a Finance thats good value for him, both now and in the future. Needs More Money - The equity of the customers House can be a very effective financial tool he possesses. The bank has finance schemes-designed to utilize that power to create money for anything he may need- building up his

.. 75 ..

home, a marriage in the family or even a holiday.

.. 76 ..

The Press Room

Following are the various extracts of the news items as well as the headlines of the different newspapers and business magazines from time to time during the calendar year 2005: - KOTAK MAHINDRA BANK ANNOUNCES RESULTS FOR Q3 FY06 Consolidated net profit up 88% to Rs. 81.8 crore (Mumbai, January 17, 2006) - KOTAK MAHINDRA BANK EXPANDS RAPIDLY IN PUNJAB Open branches in 3 more major locations (November 5, 2005) - KOTAK MAHINDRA BANK ANNOUNCES RESULTS FOR Q2FY06 Consolidated net profit up 156% to Rs. 83.4 crore (Mumbai, October 27, 2005) - KOTAK MAHINDRA BANK OPENS BRANCH IN KANPUR Branch opens at The Mall, Meghdoot Hotel Building (August 22, 2005)

.. 77 ..

- BEST COMPLIMENTS FROM KOTAK MAHINDRA BANK Ajay Devgan presents wife Kajol Best Compliments card on her birthday (August 11, 2005) - KOTAK MAHINDRA BANK ANNOUNCES RESULTS FOR Q1FY06 Consolidated net profit for Q1 FY 06 up 51% to Rs. 46.5 crore (Mumbai, July 26, 2005) KOTAK MAHINDRA BANK STRENGTHENS PRESENCE IN DELHI Opens two branches at Safdarjung and Punjabi Baugh (June 10, 2005) - KOTAK MAHINDRA BANK ANNOUNCES RESULTS FOR FY05 Bank net profit for FY05 up 8% to Rs. 85 crore Declares 3:2 Bonus (Mumbai, June 07, 2005) - KOTAK MAHINDRA GROUP AND FORD CREDIT INTERNATIONAL REALIGN JOINT VENTURE (June 1, 2005) - KOTAK MAHINDRA BANK OPENS THIRD BRANCH IN CHENNAI (May 7, 2005)

.. 78 ..

- KOTAK MAHINDRA BANK PITCHES IT IN FOR THE CORPORATE. "Offers free cash delivery at office and online funds transfer facility*" (March 18, 2005) - KOTAK MAHINDRA BANK ARRIVES AT NEPEAN SEA ROAD "Offers Free Cash Delivery at Home and Free Access at all Visa ATM" (March 5, 2005) - KOTAK MAHINDRA BANK LAUNCHES IN INDORE "Offers Cash Pick up service to the business community" (February 23, 2005) KOTAK MAHINDRA BANK COMMENCES OPERATIONS IN ADYAR, CHENNAI (February 21, 2005) KOTAK MAHINDRA BANK INAUGURATES RAJAJINAGAR EXTENSION COUNTER IN BANGALORE (February 16, 2005) - KOTAK MAHINDRA BANK ANNOUNCES Q3 FY05 RESULTS Bank net profit up to Rs 19.10 crore (Mumbai, January 24, 2005) - Kotak Mahindra Bank opens semi-urban branch in Mehsana, Gujarat (January 24, 2005)
.. 79 ..

The Study
Objective of the Study: To study the service charges levied by The Kotak Mahindra Bank and to compare the same with that charged by other privatized and nationalized banks situated in Rajkot. Banks Covered: The Kotak Mahindra Bank The Industrial Development Bank of India (IDBI) The Unit Trust Of India (UTI) The Housing Development Finance Corporation (HDFC) The Union Bank of India

.. 80 ..

Kotak Mahindra Bank

KOTAK Particulars Edg e Average Q uarterly 25,000 Rs. balance AQ B non Rs. 500 m aintenance charges Investm ent Free Account Additional None account 2 w ay sw eep Rs. 50,000 Pro Rs. 50,000 Rs. 750 Free Ace Rs. 2,50,000 Rs. 2,500 Free

1 fam ily a/c 3 fam ily a/c Rs. 5,00,000 Free & Unlimited Free with a capacity of Rs. 30 lacs p.m. 0.1/1000 free 1/1000 free free free for 1st year 100
.. 81 ..

Rs.1,00,00 0 DD / BC Free & Free & branch locations unlimited unlim ited D D / B C non 2.5/1000 of Fre e w ith a bra nch locatio ns min Rs.50 ca pacity of R s. 5 la cs p.m .) EFT 0.1/1000 0.1/1000 CHEQUE COLLECTION For branch 2.5/1000 free location For non branch 2.5/1000 2.5/1000 locations H O M E B A N K IN G Instrum e nt pick- R s. 2 5 pe r free up or delivery In stru m e n t Cash pick up or Rs. 100 free delivery D e b it c a rd free for 1st free for 1st year 100 year 100

supplementary card Add on card

D aily cash lim it (per day) Own ATMs free VISA Domestic charged R s. ATMs 25 VISA charged Rs. International 90 ATMs At par cheque Rs. 4 per books leaf Pre carbonated none cheque books Account m onthly Statem ent Ad hoc statem entcharged Rs.25 Dem at account free Term cover none Advisory services none

charged 100 1st yr charged 100 1st yr. Rs. 25000

charged

free for 1st year 100 charged 100 free for 1st 1st yr. year 100 Rs. 25000 Rs. 75000 free free free free

charged Rs. free 90 fre e yes m onthly charged R s. 25 free none none free yes m onthly Charged Rs. 25 free yes Rs. 5,00,000 yes

before 6 Rs. 5,000 months After 6 m onths NIL NIL NIL D D c a n c e lla tio n Rs. 100 Rs. 100 Rs. 100 Stop paym ent Rs. 100 Rs. 100 Rs. 100 S T A N D IN G IN S T R U C T IO N S setup Free Free Free Per instruction Free free Free Pay orders Rs. 100 Rs. 100 Rs. 100 C h e q u e re tu rn Rs. 100 Rs. 100 Rs. 100

ACCOUNT CLOSURE Rs. 1,000 Rs. 1,000

.. 82 ..

HDFC Bank
HDFC Particulars Average Quarterly balance AQB non maintenance Investment Account Additional account 2 way sweep DD / BC branch locations DD / BC non branch locations EFT Standard Rs.10,000 Rs. 750 per quarter N.A none N.A free charged Trade Rs. 40,000 Rs. 1,200 per quarter none free up to Rs. 10 lac charged Plus Rs. 1,00,000 Rs. 1,500 per quarter None free up to Rs. 10 lac Charged Free Free after 4th working day after free 6th working Free for one visit daily Rs. 100 per visit Rs. 100 p.a. None None Rs. 50,000 per day Free
.. 83 ..

free free CHEQUE COLLECTION for branch free Free after location 4th working day after for non branch free free locations 6th working HOME BANKING Instrument pick-up or delivery up or Cash pick delivery Debit card supplementary cardon card Add Daily cash limit (per day) Own ATMs N.A N.A Rs. 100 p.a None None Rs. 50,000 per day free Rs. 500 per month Rs. 500 per month Rs. 100 p.a None None Rs. 50,000 per day Free

VISA Domestic Rs. 25 ATMs VISA Rs. 50 International At par cheque free free books Pre carbonated N.A. N.A. cheque books Account monthly monthly Statement Ad hoc Rs. 1,000 Rs. 1,000 statement per year per year Demat account free free Term cover N.A. N.A. Advisory None None services ACCOUNT CLOSURE before 6 Rs. 100 Rs. 100 monthsmonths NIL After 6 NIL DD Rs. 50 Rs. 50 cancellation Stop payment Rs. 50 Rs. 50 STANDING INSTRUCTIONS set up Rs. 150 Rs. 150 Per instruction Rs. 25 Rs. 25 any orders Rs. 100 Rs. 100 CHEQUE RETURN issued & return Rs. 300 Rs. 300 Local Rs. 50 Rs. 50 Out station Rs. 100 Rs. 100

Free N.A. Monthly Rs. 1,000 per year Free N.A. None Rs. 100 NIL Rs. 50 Rs. 50 Rs. 150 Rs. 25 Rs. 100 Rs. 300 Rs. 50 Rs. 100

.. 84 ..

IDBI Bank
ID I B P a r t ic u l a B a sic S p e c ia Bronz Average Rs. Rs. Rs. Q uarterly 10,000 50,000 1,00,00 AQ B non Rs, 500 Rs. 750 Rs. m aintenan per per 2,500 ce charges quarter quarter per quarter Investm ent None None None Account Additional N.A N.A N.A 2 way N.A N.A N.A sweep DD / BC 2.5/100 free free branch locations D D / BC non branch locations EFT Silver Rs. 30,000 Rs. 3,000 per quarter None N.A N.A free G o ld Rs. 5,00,00 Rs. 2,000 per quarter None N.A. N.A. free free up to Rs. 30 lacs free up to Rs. 5 crores/ m onth free u p to R s.1 crore 0.30%

0 2.5/100 2.0 /100 2.0/1 0 0 Free up 0 0 0 to Rs. 13 lac 1.5/100 free up fre e u p Free up 0 to Rs. to to Rs.3 75 R s.1 .5 0 crores/ lac/m on crores/ month CH EQ U E CO LLEC TIO N For branch 0.25% free up free up fre e u p location + to Rs. to R s. to R s. 1 postag 50 lacs 50 lacs crore For non 0.40% 0.3 0% 0.30% 0.300/ bran ch locations H O M E B A N K IN G In strum ent NO NO NO NO p ick-u p or d elivery Cash pick NO NO NO NO up or deliverya r d Rs. 99 Rs. 99 D e b it c Rs. 99 Rs. 99 p.a p.a p.a suppleme p.a None None None None ntary card Add on 1s t ye ar 1s t ye ar 1s t ye ar 1s t year card fre e fre e fre e free

NO NO Rs. 99 p.a. None 1st year free

.. 85 ..

D aily cash lim it (per day) ATMs Own VISA Domestic VISA Internation At par cheque Pre carbo nated cheque Account Statement Ad hoc statement Demat account Term cover Advisory services before 6 months After 6 months DD cancellati on Stop payment Setup Per instruction Pay orders Issued & returned Deposited & returned Deposited & returned

Rs. 25,000 free Rs. 55 Rs. 125 not availabl N.A. m onthly Rs.250/ quarter FREE None N.A.

Rs. 50,000 free Rs. 55 Rs. 125 free N.A. monthl y Rs.250/ quarter FREE None N.A.

Rs. 50,000 free Rs. 55 Rs. 125 free N.A. monthl y Rs.250/ quarter FREE None N.A.

Rs. 50,000 free Rs. 55 Rs. 125 free N.A. m onthly Rs.250/ quarter FREE None N.A.

Rs. 50,000 free Rs. 55 Rs. 125 free N.A. monthly 250/ quarter FREE None N.A.

ACCOUNT CLOSURE Rs. 500 Rs. 500 Rs. 500 Rs. 500 Rs. 500 Nil Rs. 50 Nil Rs. 50 Nil Rs. 50 Nil Rs. 50 Nil Rs. 50 Rs. 50 Rs. 50 Rs. 25 Rs. 200

Rs. 50 Rs. 50 Rs. 50 Rs. 50 STANDING INSTRUCTIONS Rs. 50 Rs. 50 Rs. 50 Rs. 50 Rs. 25 Rs. 25 Rs. 25 Rs. 25 Rs. 200 Rs. 200 Rs. 200 Rs. 200 CHEQUE RETURN

Rs. 200 Rs. 200 Rs. 200 Rs. 200 Rs. 200 Rs. 50 Rs. 50 Rs. 50 Rs. 50 Rs. 50

Rs. 100 Rs. 100 Rs. 100 Rs. 100 Rs.100

.. 86 ..

UTI Bank
UTI Classic Rs. 1,00,000 Rs. 800/mon th No No N.A. 0.75/100 0 up to Rs.20lac / month 2/100 0 and min Rs. 25

Particulars Average Quarterly balance AQB non maintenance charges Investment Account Additional account 2 way sweep DD / BC branch locations

Normal

Advant age Rs.10,000 R s. 25,000 Rs. 250/mon th No No N.A. Free R s. 300/mon th No No N.A. 1/1000 up to Rs.5lac/ month 2/1000 min and Rs. 25

Privileg e Rs. 5,00,000 Rs. 1,200/mo nth No No N.A. 0.75/100 0 up to Rs.50 lac/ month 1.5/1000 and min Rs. 25 No Free 0.75/100 0+ Rs.30 for post N.A.
.. 87 ..

DD / BC non branch locations EFT

2/1000 and min Rs.25

for branch location For non branch 1/1000 locations + Rs.30 for post Instrument

No No No CHEQUE COLLECTION 1.5/1000 1.5/1000 Free 0.75/100 0+ Rs.30 for post HOME BANKING N.A. N.A. N.A. 1/1000 + Rs.30 for post

pick-up or delivery Cash pick up or delivery Debit card Daily cash limit (per day) Own ATMs At par cheque books Account Statement Ad hoc statement Demat account Term cover Advisory services

N.A. Free two cards Rs. 55,000 Free 1st free, 1.5/leaf Monthly Rs. 50 Free No No

N.A. free two cards Rs. 55,000 Free 1st free, 1.5/leaf Monthly Rs. 50 Free No No

N.A. free two cards Rs. 70,000 Free 1st free, 1.5/leaf Monthly Rs. 50 Free No No

N.A. free two cards Rs. 75,000 Free 1st free, 1.5/leaf Monthly Rs. 50 Free No No Rs.100 Nil Rs. 100 Rs. 100 Rs. 100 Rs. 20 Rs. 250 Rs. 50 Rs. 100

before 6 months after 6 months Nil Nil Nil DD Rs. 100 Rs. 100 Rs. 100 cancellation Stop payment Rs. 100 Rs. 100 Rs. 100 STANDING INSTRUCTIONS Per instruction Rs. 100 Rs. 100 Rs. 100 Pay orders Rs. 20 Rs. 20 Rs. 20 CHEQUE RETURNED Issued & Rs. 250 Rs. 250 Rs. 250 returned deposited & Rs. 50 Rs. 50 Rs. 50 returned (Local) deposited & Rs. 100 Rs. 100 Rs. 100 returned (Out station)

ACCOUNT CLOSURE Rs.100 Rs.100 Rs.100

.. 88 ..

Union Bank Of India

UNION BANK Mid tier Low tier segment segment Rs. 3000 Rs. 3000 Rs. 827 N.A None Rs. 827 N.A. None Rs. 1.10/1000 See table 6 DD + Rs. 11 per transaction

Particulars

Top tier segment Average Quarterly Rs. 3000 balance AQB non Rs. 827 maintenance charges Investment N.A Account Additional account None 2 way sweep

Free up to free up to Rs.2 Rs. 1 crores crore DD / BC for branch Free 150 Free 45 locations DDs of DDs of Rs.1 lac Rs.20 lac EFT DD + DD + Rs. Rs.11 per 11 per transactio transactio n n CHEQUE COLLECTION For Branch See Table See Table location 7 7 For non branch Rs. Rs. locations 1.10/1000 1.10/1000 HOME BANKING Instrument pickN.A N.A up or delivery cash pick up or N.A N.A delivery Debit card Free Free

See Table 7 Rs. 1.10/1000 N.A. N.A. Free

.. 89 ..

Supplementary card Add on card Daily cash limit (per day) Own ATMs VISA Domestic ATMs VISA International ATMs At par cheque books Account Statement Ad hoc statement Demat account Term cover Advisory services

No

No

No No

No No Rs. 50,000 Free Rs. 10 N.A Rs. 2.20 per leaf Free Rs. 25 Charged No No Free Rs. 10 N.A Rs. 2.20 per leaf Free Rs. 25 Charged No No

Free Rs. 10 N.A. Rs. 2.20 per leaf Free Rs. 25 Charged No No Rs. 827 Rs. 22 Rs. 28 Rs. 110 Rs. 22 See the table 8 of collection

ACCOUNT CLOSURE before 6 months Rs. 827 Rs. 827 DD cancellation Rs. 22 Rs. 22 Stop payment Rs. 28 Rs. 28 STANDING INSTRUCTIONS set up Rs. 110 Rs. 110 per instruction Rs. 22 Rs. 22 Pay orders See the See the table 8 table 8 Cheque returned of of collection collection

.. 90 ..

DD branch locations:-

Amount of Demand Draft Up to Rs. 500 Rs. 501 to Rs. 1000 Rs.1001 to Rs. 5000 Rs. 5001 to Rs.10000 Rs. 10001 to Rs.10 lacs More than Rs.10 lac.

Charges (in Rs.) 11 17 22 28 2.5/1000 2.5/1000

Table 6

.. 91 ..

Cheque collection for branch location:-

Amount of cheque Up to Rs. 500 Rs.501 to Rs.1000 Rs.1001 to Rs.5000 Rs.5001 to Rs.10000 Rs.10001 to Rs.1 lac Rs.1 lac to Rs.10 lac More than Rs. 10 lac.

Charges (In Rs.) 11 17 28 39 4/1000 3.5/1000 3.5/1000

Table 7

.. 92 ..

Pay Orders:-

Amount of Pay orders Up to Rs.500 Rs.501 to Rs.1000 Rs.1001 to Rs.5000 Rs.5001 to Rs.1 lac Rs.1 lac to Rs.10 lacs More than Rs.10 lac

Charges (In Rs) 11 17 22 1.7/1000 0.6/1000 0.6/1000

Table 8

.. 93 ..

100000

200000

300000

400000

500000

600000

0 Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier Average Quaterly Balance

- :AVERAGE QUATERLY BALANCE: -

.. 94 ..

Average Quarterly Balance: It is clear from the above presented pictorial graph, that each bank follows the subcategories under the current accounts. The above graph shows that each sub category of the current accounts the graphs of AQBs is increasing but so is not the case with the union bank because the sub categories has been developed by keeping in view the type and the needs of the account holders. The Edge account of Kotak follows the AQB of Rs. 10,000 whereas in HDFC; the standard account has AQB of Rs. 5,000 so is with the IDBI and UTI accounts, (i.e. Rs. 5,000 each). The customer will have to maintain the amount almost the double in comparison of the other banks. This would cost him the Opportunity Cost on Rs. 5000 laying in the account, which could be invested elsewhere.
.. 95 ..

0.5

1.5

2.5

Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier DD for Branch Locations (per thousand)

- :DD FOR BRANCH LOCATIONS: -

.. 96 ..

Branch Locations: The word Branch Location referred to as the bank having branch in the city where the DD is to be payable. The above graph shows that there are no charges levied by Kotak Bank and by IDBI and Union Bank for Branch Locations, but only HDFC Bank and UTI Bank charge for the same. When a branch is located in the concerned city, most of the banks provide the DD or BC free almost in every account, because it becomes easy for the Bank to transfer the rupees from one of their branches to the other branch. For example, DD from the Rajkot Branch of Kotak Bank to its Ahmedabad Branch is easily executable by the bank as it owns branches in both the concerned cities. If in case the Bank has a good number of branches across the Geographical Area, it would be much easier for the account holder.

.. 97 ..

0.5

1.5

2.5

0
Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier DD for non branch locations (per thousand)

- :DD for non-branch location: -

.. 98 ..

Non Branch Locations: When the DD is to be executed to any station where the Bank does not have the branch it becomes the matter of concern. When DD is to be executed where the same bank does not have any branch, some charges are levied by almost all the banks for DDs, because the drafts are payable to some other branch in this case. For example, If form the Kotak Bank, Rajkot, a DD is to be payable to Surat, where the bank does not have any branch, the draft is payable to HDFC Bank, Surat and in this case the correspondent bank charges are also levied. For almost every bank, whether privatized or nationalized, in case the DD is to be payable at non branch locations, the charges are levied for the same. Here the two different banks come into the transaction, and because the sender bank has to suffer some transactions dealing with the receiver bank, it becomes necessary to charge up on these transactions. Here Kotak Bank charges the higher amount because the Bank is new into the market and does not have branches in some upcoming
.. 99 ..

cities. It cannot thus enjoy the branch location status.

..

100 ..

100

120

20

40

60

80

0
Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier DD Cancellation Charges

- :DD Cancellation: -

..

101 ..

Demand Draft Cancellation: The demand drafts or the Bankers Cheque cancellation is the second important concern in the banking fields. As per the message of the customer, the DD is to be cancelled and in case of cancellation due to inadequate amount or inoperative account, some charges are levied. As far as DD cancellation is concerned, these charges are almost same for Kotak Bank and UTI Bank but these charges are higher than that of HDFC Bank, IDBI Bank and the Union Bank of India. In case of DD of branch locations there would not be much trouble because the same bank would come into picture, but in case of DD cancellation of non branch location two different banks come into the picture and thus the charges of sender and receiver bank are taken.

..

102 ..

1000

1500

2000

2500

3000

3500

4000

4500

5000

5500

500

0 Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier

- :Account Closing: -

A/c Closing charges

..

103 ..

Account Closing: The account closing is another vital topic from the banks point of view. Almost every bank follows the same procedure of charges levied for the closing of an account. If the Account is to be closed before the completion of 6 months, charges are applied and thereafter no charges are levied. The above graph shows that the charges of closing of an account in Kotak Bank are a bit higher than that of other banks. For every account the only difference is in Kotak Mahindra Bank between Ace and other accounts, where it charges the amount of Rs. 5000. The reason behind charging this high amount could be that the Ace account is targeted to the businesses with higher turnovers that can afford these higher charges.

..

104 ..

1000

1500

2000

2500

3000

3500

4000

500

0 Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier AQB Non Maintenance

- :AQB Non-Maintenance: -

..

105 ..

AQB Non Maintenance: AQB Non Maintenance charges are levied when the customer is not able to maintain the minimum Average Balance or fails to keep the amount Operative. The above graph shows that as far as Kotak Bank is concerned AQB Non Maintenance charges are lower as compared to other privatized banks. Here for every other bank, higher AQB Non Maintenance charges are levied, or in other words we can say that the graph goes higher with the account with higher AQB value. When the AQB is not maintained the account becomes inoperative, and thus the banks charge some amount so that the customer keeps the balance adequate and no maintenance charges are incurred.

..

106 ..

- :Cheque Issued and Returned: -

Charges on Cheque issued and returned

300

250

200

150

100

50

Normal

0 Edge Pro Trade Gold Standard Special Plus Bronze Silver Basic Ace

Advantage

Privilege

Classic

..

107 ..

Cheque issued and returned: This is another critical issue to be taken into account. A cheque returns due to insufficient amount in the account. When a cheque is issued by a customer and it returns the bank charges on it. As per the above graph, it is very clear that the Kotak Bank charges lesser than the other privatized banks and these charges comparatively are almost half of those charged by other banks. This means that the Bank is liberal in charges for the cheque issued and returned.

..

108 ..

- :Cheques Deposited and Returned: -

Charges on Cheques depostied and returned 100 90 80 70 60 50 40 30 20 10 0 Edge Pro Trade Gold Special Plus Standard Bronze Silver Basic Ace

Normal

Advantage

Privilege

Classic

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Cheques deposited and returned: Another critical issue related is when the cheque is deposited into the account and it gets returned. When a cheque is received by the account holder for his payment from the other party, bank charges some amount of money. When a cheque deposited is returned for local clearing the above charges are levied. These charges are higher in case of Kotak Mahindra Bank and the charges are almost double than that of other banks.

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10

20

30

40

50

60

0 Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier VISA-domestic ATMs

- :VISA affiliated Domestic ATMs: -

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VISA Affiliated ATMs: Various Banks have made tie ups with VISA for their ATMs. When a customer is withdrawing his/her money through this ATM the above shown charges are levied. The above given graph presents the analysis on the charges levied by Kotak Bank and other banks in case of Domestic ATMs. It is clear from the graph that the charges charged by Kotak Bank are almost half of the other privatized banks and the charges of Kotak Bank and HDFC Bank are the same. However, the charges of Kotak are higher than Union Bank but lower than that of IDBI Bank and UTI Bank.

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- :VISA Affiliated International ATMs: -

VISA-International ATMs 140

120

100

80

60

40

20

Normal

0 Edge Pro Trade Gold Standard Special Plus Bronze Silver Basic Ace

Advantage

Privilege

Classic

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VISA International ATMs: For VISA affiliated ATMs situated abroad, those banks which do not have their ATMs in that country but are affiliated with VISA for their ATM facility, the above quoted charges are levied. Here, the charges for Kotak Bank are higher than that of HDFC but they are lower than that of IDBI Bank as well as that of UTI Bank. The Kotak Mahindra Bank does not charge for the current account ACE, as it is for the higher class of customers and thus the facility has been provided for the NRI customers.

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10000

20000

30000

40000

50000

60000

70000

80000

0 Edge Pro Ace Standard Trade Plus Basic Special Bronze Silver Gold Normal Advantage Classic Privilege Top Tier Mid Tier Low Tier Cash Withdraw al Limits

- :Cash Withdrawals: -

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Cash Withdrawal Limits: Cash withdrawal limits for various banks has been given here through their ATM centers. For very huge businesses, the liquidity or the cash delivery is of great importance. Thus, here the bank which gives more amount of withdrawal is considered to be preferable. As far as Kotak is concerned, the cash withdrawal limit is lesser than that of others. For cash withdrawals the UTI bank is at the top. But as far as the Upper scale current account "ACE" is concerned, the withdrawal limit is almost same as that of highest limit of UTI. Cash Withdrawals through ATMs is also important when the customer has the necessity to encash the money from outstation. Here we can say that in current account ACE, the higher withdrawal limits are pretty good for the convenience of the Higher Class people.

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Brief Analysis of the Study

The bank is liberal in some service charges than that of other banks which are:International ATM withdrawals, Domestic VISA ATM withdrawals, Cheque return charges, and AQB non maintenance charges.

The bank is strict in some charges than that of other private banks which are:Account closing charges, AQB maintenance charges, -Demand Draft cancellation charges

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The most important feature of the Bank is the "Home banking" facility, which is not provided by other banks as successfully as Kotak Bank does. The AQBs of current accounts of Kotak Bank are higher than that of other banks. Kotak Bank provides various investment advisory services apart from regular banking activities. The target customers of Kotak bank are higher class people i.e. Doctors, Officers, engineers, etc., Kotak Bank also supports Mutual fund schemes like Franklin Templeton, Reliance mutual fund, etc.

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Limitations of the Study:Every study conducted, whatever is the field; by any limitations. During my study charges levied by various banks, difficulties: in no matter, how has some of the service I found following

The study is biased from respondent's answers. The cost associated with the study. The time spent for the study.

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Conclusion
Based on the findings mentioned above the conclusion is as follows: The ATM withdrawal service of Kotak Mahindra Bank is better than other banks as the charges levied are lower in both Domestic as well as International withdrawals. The bank is also liberal in case of Cheque returned and so the customer can be a bit relaxed in case of a cheque return. In case the AQB is not maintained the bank charges comparatively lower and so it becomes easier to remaintain the AQB without paying higher charges. Kotak Bank levies higher account closing charges but that is only in case the account is operated for 6 months only. Demand Draft cancellation charges are stricter than that of other banks. "Home Banking" is the facility which is far better than that of other banks. The account structure of the Bank is targeted specifically to the higher class society as the charges and the AQBs are higher.

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BIBLIOGRAPHY

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Bibliography

To prepare this project report of The comparative study of the service charges of various privatized as well as nationalized banks, I have taken the help of the following resources: Bank Charges Brochures of the following Banks: Kotak Mahindra Bank HDFC Bank UTI Bank IDBI Bank Union Bank Of India Websites of the following Banks: Kotak Mahindra Bank HDFC Bank UTI Bank IDBI Bank Union Bank Of India
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