Marketing Strategies at Kotak-Mahindra Bank By AKASH DIXIT

8/13/2019 Marketing Strategies at Kotak-Mahindra Bank By AKASH DIXIT

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2 | P a g e Akash DixitNIILM CMS, GREATER NOIDA, BATCH 12-14 [email protected]

Declaration

This project titledPRODUCT

AND MARKETING REGARDING KOTAKMAHINDRA BANK being submitted by me in the partial fulfilment ofrequirements for the award of Master of Business Administration degree from NIILM-CMS, affiliated to AICTE, New Delhi. I have not submitted this work anywhere elsefor any other degree or diploma. All sources of information and help are authenticand have been acknowledged in the report.


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Acknowledgement

I would like to thank KOTAK MAHINDRA BANK for providing me an opportunity to work with themand giving me necessary guidance in completing the project to the best of my abilities.

I am obliged to Mr. Pushkin Mehrotra, Manager, Gomtinagar, Lucknow who provided me theessential information and extended his best support.

I would like to extend special gratitude to Mr. Ashutosh Shukla, Manager, Working CapitalDepartment, KMB, Gomtinagar, Lucknow for providing me an insight into various issues pertaining tothe cases mentioned in the report. This is his sincere support and consistent guidance that led to thecompletion of the project.

I am highly indebted to Mr. Vimal Mishra for his mentorship and valuable suggestion that gave meconfidence and encouragement that helped me to put in my best.


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INDEX

Chapter 1 Introduction 8Chapter 2 Company Profile 10Chapter 3 Product Detail 12Chapter 4 Analysis and

Findings ofsurvey

25

Chapter 5 Conclusion 33


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EXECUTIVE SUMMARY

The project is based on the sales strategies for the Banking products with special references toKOTAK MAHINDRA BANK and the consumer perception about the same.

First and Foremost, the purpose of KOTAKMAHINDRA BANK is to fulfil the need for investment under one roof.

This project shows, the common man has started capital market term like bulland bear explode new time.

It gives the detail view of the regulatory framework for the KOTAK MAHINDRA BANK The focus the shift to various products of KOTAK MAHINDRA BANK to cater to the

needs such as return explanation, financial position, risk tolerance, etc.

The next phase look up the investment in growth oriented stock which are available atattractive relative valuation.

Further to this, project proceeds with the research designed in the light of the core objectives of thestudy along with the sub objectives that are given due consideration throughout the research. It alsoenlists all the data sources as to by which means the study has gained momentum. The data hasbeen collected by virtue of questionnaires and websites, respectively. The scope of the studysuggested in favour of the companies striving to emerge as super powers drawn out by thesurvey.These companies can fine tune their prospectiveones and can grab the opportunities of thetransforming the weakness of other into their own strength.

RESEARCH OBJECTIVES

Various Objectives for conducting the research and analysis are listedas under:

1. Access the Market Potential of Kotak Mahindra Bank Saving Account with the help of a surveyconducted on a total of 155Respondents (50-Kotak Mahindra Bank customers, 100-Other Bankscustomers).

2. Study how new distribution channels such as Internet Banking, ATM facility, Phone Bankinghave changed the face of the Banking industry.

3. Study the impact of a customer centric approach being followed by the Bank, and what is itsbenefit.

4. Compare the services offered by Kotak Mahindra Bank and the customers satisfaction level of thesame with that of other Banks in the Private and Government sector, and to access where the Bankhas to improve.

5. Consideration of various promotional and marketing and advertising strategies of Kotak Mahindra

to the satisfaction among its ultimate users and consumers6.Finally to draw the various


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conclusion and recommendations on the basis of the study conducted on specifically taking toconsideration the services, advertising and marketing strategies of the Bank.

REASEARCH METHODOLOGY

As the title of the project suggests the purpose is to study the access of prudential in area likeChinhat and Gomtinagar. Research comprise defining and redefining problems, formulatinghypothesis or suggested solutions; collecting, organizing and evaluating data; making deductionsand reaching conclusions; and at last carefully testing the conclusions to determine whether they fitthe formulating Hypothesis. In short, the search for Knowledge through Objective andSystematicmethod of finding solutions to a problem is research.

SOURCES OF DATA

Data is collected from primary as well as secondary source. For primary data customer werepersonally intervened and for secondary data annual report, journals, internet and personalinterview.

METHODOLOGY:

The methodology adopted in conducting this survey was quite simple.First there was collection of data from various sources including personal interview. Then afterscanning and properly analyzing andinterpreting the information available on hand, a final report wasprepared.

PRIMARY DATA:

Primary data was collected from the sample by a self-administered questionnaire in presence of theinterviewer.

SECONDARY DATA:

The chief sources of secondary data were magazines, newspaper, journals etc.

RESEARCH DESIGN

Type of Research

Descriptive research

Descriptive research is also called Statistical Research. The main goal of this type of research is todescribe the data and characteristics about what is being studied. The idea behind this type ofresearch is to study frequencies, averages and other statistical calculations. Although this research ishighly accurate, it does not gather the causes behind a situation. The line Managers revealed aboutvarious strategies involved in performing business activities and gathering data using varioustechniques and software applications.


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Descriptive research includes Surveys and fact-finding enquiries of different kinds. The maincharacteristic of this method is that the researcher has no control over the variables; he can onlyreport what has happened or what is happening. Simple statistical tools have been used to analyseand interpret the data collected from the field. The study has used percentile method and the dataare presented in the forms of diagrams. Interpreting the information available on hand, a final reportwas prepared.

SCOPE OF THE STUDY

This study helps in finding out the satisfaction of most important resource that is human resource inKotak Mahindra Bank.

This also helps in finding the effectiveness of human resource policies in organization.

The study provides knowledge of various products& investment services of Kotak Mahindra Bank

The study helps to learn of work culture of organization.

The study of also helps to learn what as the various benefits available to the advisor in anorganisation

The study also helps the company to be aware of important thatits has to make in its incentivesplan.

LIMITATIONS

The study could not be made that comprehensive due to timeconstraints. Some customers feel uncomfortable to reveal somepersonal information relating to income etc. it might have happened thatsome more essential information could have been collected.

Time constraint. Biases and non-cooperation of the respondents. Financial constraint. Geographical selectivity in study limiting to Lucknow city only. People were not interested in giving personal opinion.


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CHAPTER 1

INTRODUCTION

Banks like Kotak Mahindra , standard chartered, ICICI, HDFC, and Citibank now bring your BankAccount and Debit card to your fingertips. With Mobile commerce, you can perform a wide rangeof query-based transactions from your Mobile Phone, without even making a call. Kotak Mahindra isone of India's leading financial institutions, offering complete financial solutions that encompassevery sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance,to investment banking, the group caters to the financial needs of individuals and corporate. Thegroup has a net worth of over Rs.1,800 crore and employs over 4,400 employees in its variousbusinesses. With a presence in 82cities in India and offices in New York, London, Dubai andMauritius, it services a customer base of over 5, 00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largestinvestment banks and brokerage firms) and Old Mutual (a large insurance, banking and assetmanagement conglomerate). The Kotak Mahindra Group was born in 1985 as Kotak CapitalManagement Finance Limited. This company was promoted by Uday Kotak , Sidney A. Pinto andKotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, andthat's when the company changed its name to Kotak Mahindra Finance Limited. Since then it's beena steady and confident journey to growth and success.

1986: Kotak Mahindra Finance Limited starts the activity of Bill Discounting

1987 : Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market


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1990 : The Auto Finance division is started

1991 : The Investment Banking Division is started. Takes over FICOM, one of Indias largestfinancial retail marketing networks

1992 : Enters the Funds Syndication sector

1995 : Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company KotakMahindra Capital Company

1996 : The Auto Finance Business is hived off into a separate company - Kotak MahindraPrimus Limited. KotakMahindra takes a significant stake in Ford Credit KotakMahindra Limited,for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Groupsentry into information distribution.

1998 : Enters the mutual fund market with the launch of Kotak Mahindra AssetManagement Company.

2000 : Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securitieslaunches kotakstreet.com - its on-line broking site and formal commencement of private equityactivity through setting up of Kotak Mahindra Venture Capital Fund.

2003 : Kotak Mahindra Finance Ltd. Converts to bank


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CHAPTER-2

COMPANYS PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of Indias most reputed financialorganizations. In Feb 2003, Kotak Mahindra Finance Ltd., the groups flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).This approval creates banking history since Kotak MahindraFinance Ltd is the first company in Indiato convert to a bank. The license authorizing the bank to carry on banking business has beenobtained from the RBI in tune with Section 22 of the Banking Regulation Act 1949. KMBL waspromoted by Mr. Uday S. Kotak, Kotak and Company Ltd and Mr. Sidney & A. A. Pinto underthe name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a Certificate ofCommencement of Business on 11 th Feb 1986. The bank customers have access to entire VISAnetwork of 4500ATMS in India and 800000ATMS worldwide accepted in more than56000

establishments across India and 10 million worldwide. The customer also has access to over800 ATMs with sharing arrangements with UTI BANK, of these 125 are in the NCR.

KEY GROUP COMPANIES AND THEIR BUSINESSES

Kotak Mahindra Bank The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltdwhich was established in 1985, was converted into a bank-Kotak Mahindra Bank Ltd in March 2003becoming the first Indian company to convert into a Bank. Its banking operations offer a centralplatform for customer relationships across the group's various businesses. The bank has presence inCommercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. KotakMahindra Capital Company Kotak Mahindra Capital Company Limited (KMCC) is India'spremier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers &Acquisition Structured Finance and Advisory Services.

Kotak Securities Kotak Securities Ltd. is one of India's largest brokerage andsecurities distributionhouses. Over the years, Kotak Securities has been one of the leading investment broking housescatering to the needs of both institutional and non-institutional investor categories with presence allover the country through franchisees and coordinators. Kotak Securities Ltd. offers online and offlineservices based on well-researched expertise and financial products to non-institutional investors.Kotak Mahindra Prime Kotak Mahindra Prime Limited (KMP) (formerly known as KotakMahindra Primus Limited) has been formed with the objective of financing the retail and wholesaletrade of passenger and multi utility vehicles in India. KMP offers customers retail finance for bothnew as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues tobe among the leading car finance companies in India. Kotak Mahindra Asset Management CompanyKotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company(KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra MutualFund (KMMF). KMMF manages funds in excess of Rs 20,800 crore and offersschemes catering toinvestors with varying risk-return profiles. It was the first fund house in the country to launch adedicated gilt scheme investing only in government securities. Kotak Mahindra Old Mutual LifeInsurance Limited Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between

Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take


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important financial decisions at every stage in life by offering them a wide range of innovative lifeinsurance products, to make them financially independent.


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CHAPTER 3

PRODUCT DETAIL

Kotak Mahindra Bank is one of the prominent subsidiaries of Kotak Mahindra group. The activitiesof the company being parallel to its objective are very wide and cover all the components of a Bank.The Basic area of Operations is the Banking business, other products are meant for the regularrevenue generation. Being a Banking house, the company is in regular touch with Banking Accounts,Investment Services, Convenience Banking and Other Services. They offer complete solutionsthat address all your financial requirements, whether you're an individual or a firm. From everydaybanking to long term investments their offering covers it all. This wide range of productsis delivered to you with a genuine understanding of your specific need and warm, personalisedservice. Kotak Mahindra Bank, its not about selling you many different products it's aboutworking out a holistic, pragmatic solution that addresses your financial needs. Through their varied

products, they commit themsel ves to becoming banker to the customer rather than being assetfinancier to our customers

BANKING ACCOUNTS

There are three types of banking account:

I. SAVINGS ACCOUNT

KOTAK MAHINDRA has got a variety of options of savings accounts to choose from for its customersaccording to their convenience and requirements. These savings accounts offer attractive returnsalongwith personalized banking services at three convenient average quarterly balances(AQB)levelsof Rs. 10000 (KOTAK EDGESAVINGS ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGSACCOUNT) and atRs75000 (KOTAK ACE SAVINGS ACCOUNT). The average quarterly balance levels as well thecorresponding servicesand benefits try to ensure the various customers needs and requirements.

Thus the three account opening options in savings account are as mentioned above:

EDGE SAVINGS ACCOUNT:

Kotak Mahindra Banks Edge Savings Account is a complete financial package customizedtosuit individual banking needs. Its constant endeavour is toenable regular financial transactionsthrough online platform so that most of payments can be made directly through your account orcard.

Features & Benefits Wide ATM access through the Kotak Mahindra Bank Debit Card

One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or enquire balance at no extracharge.


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1. Multiple Access Channels Access

An account through phone, mobile phone or internet to get information about account balance ortrack transactions. One can even transfer funds through Phone Banking or Net Banking.

2. Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills, credit cards, online tradingof shares or even online shopping.

3. Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available across 15 locationsthrough Net Banking. Also get a multi-city cheque book so that money from account is received bythe beneficiary in the fastest possible time.

4. Free investment account

One can open an investment account, and use the Net Bankingfacility to purchase/redeem mutualfunds online while directly debiting/ crediting your Bank Account. Besides this you get aconsolidatedview of all your mutual fund investments across schemes withupdated returns status,latest NAV information and research reports

.

5. Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweepsout idle funds, above a threshold, from your account into Term Deposits. These TermDeposits sweep back into your account to meet fund requirements when your withdrawals exceedthe balance available in your account, thereby providing you maximum liquidity.

PRO SAVINGS ACCOUNT:

Kotak Mahindra Banks Pro Savings Account is an account packed with powerful features to providea superior banking experience at a very comfortable balance requirement. They provide a

relationship manager who will specifically take care of banking and investment needs.

1. Features & Benefits Free ATM access all domestic VISA ATM network

Walk into any VISA ATM in India to check balance or withdraw cash absolutely free ;no longer haveto worry about locating your Bank or Partner Bank ATM Use the first VISA ATM that you spot, forcash withdrawal or balance enquiry transactions.

2. Multiple access channels

Access your account through phone, mobile phone or internet to get information on your account

balance or track your transactions. You can even transfer funds through Phone Banking or NetBanking.


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3. Free investment account

One can open an investment account, and use the Net Bankingfacility to purchase/redeem mutualfunds online while directly debiting/ crediting bank account. Besides this get a consolidated view ofall the mutual fund investments across schemes with updated returns status, latest NAV information

and research reports.

4. Financial payments facilitated through the savings account

Use our free Payment Gateway to make online payments for utility bills, credit cards, online tradingof shares or even online shopping.

5. Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available across 15 locationsthrough Net Banking. Also get a multi-city cheque book so that money from account is received bythe beneficiary in the fastest possible time

6. Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweepsout idle funds, above a threshold, from your account into Term Deposits. These Term Depositssweep back into your account to meet fund requirements when your withdrawals exceed thebalance available in your account, thereby providing you maximum liquidity.

7. Dedicated relationship manager

You get a one point contact for all your banking related queries and transactions. Yourrelationship manager will also help you with financial planning and sound investment decisions.

8. Free banking transactions

You can issue demand drafts or send cheques for collection onbranch locations without any chargeto your account.

ACE SAVINGS ACOUNT:

Kotak Mahindra Bank's Ace Savings Account has been designed asagateway to a world of financial benefits and privileged bankingtransactions. The account carries benefits ranging from personalinvestment advisory services to concierge services to free bankingtransactions. One will find that this package of services and privileges is unmatched by any othersavings account in the market.

Quick and easy funds transfer

Transfer funds easily and with speed, to a beneficiary account at another bank. One can avail of thisfacility by walking into any of branches or by simple logging on to Net Banking. Also get a freemulti-


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city cheque book so that money from your account istransferred to the beneficiary's account at anyof branch locations, in the fastest possible time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all branches for no extra charge.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility that automaticallysweeps out idle funds, above a threshold, from your account into Term Deposits. These TermDeposits sweepback into account to meet fund requirements when withdrawals exceed the balanceavailable in the account, thereby providing maximum liquidity.

II. CURRENT ACCOUNT

Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings.Whether small/ mid size business or an enterprise spread across multiple locations in thecountry, would finda Current Account that's just designed for you. These Currentaccounts offerattractive returns along with personalized banking services at three convenient average quarterlybalances(AQB)levelsof Rs. 25000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 50000(KOTAK PRO SAVINGSACCOUNT) and at Rs250000(KOTAK ACESAVINGS ACCOUNT).The average quarterly balance levels aswell the corresponding services and benefits try to ensure the various customer needs andrequirements. With features ranging from Free DDs, Free Cheque Collection, Free At -Par Chequefacility to Free Trading Account & free Demat Account, and more! Thus the three account openingoptions in savings account are as mentioned above:

Edge Current Account

In need of a well equipped bank account to keep pace in all the business endeavours. They offerthe Kotak Edge Current Account, armed with Kotak 2-Way Sweep and the entire gamut of BankingPrivileges, providing that extra edge to get ahead. The feature rich Kotak Edge Current Account is theideal way to make money work harder.

Features & Benefits

Multi City Banking Current account/s with Kotak Mahindra Bank will be recognized in every other branch. Onecan just walk into a Kotak Mahindra Bank branch in any of our branches across countryto satisfy all the banking needs.

2 - Way Sweep* : Term Deposit linked Current Account Kotak 2-Way Sweep ensures that money never stops working for you. Daily balances, abovea threshold level, in Current Account are automatically swept out into Term Deposits (TD).This 'swept outamount' is brought back into account to meet fund requirements whenwithdrawals exceed the balance available in the account (or when the account balance goes

below the specified threshold level.)With Kotak 2-Way Sweep you enjoy the twin advantagesof attractive returns & maximum liquidity.


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Give your portfolio stability of returns and safety and liquidity forinvesting Kotak Bank Term Deposit. It offer attractive returns on term deposits and investing inthem is really simple and convenient.

Features & Benefits

Ease and convenience of operation For the first time in India, New to Bank customer can also apply online for term deposit.An existing customer can place a term deposit through Phone Banking or Net Banking.What's more, one can even renew this deposit by placing an instruction over phone.Needless to mention, he can do all this and more by walking across into any of branches.

Liquidity through overdraft or sweep-in facility Deposit will be available to you should you need them in case of an emergency. One canavail up to 85% overdraft against term by paying 2% above deposit rate. This facility isavailable for deposits above Rs.50,000 for a tenure of 181 days or more. One can also

choose to link term deposit to savings / current account, whereby if need be, term depositwill automatically be enchased to meet withdrawal requirement.

No penalty on pre-mature encashment In case term deposit is pre-maturely encashed, one will earn interest at the rate prevailingon the date of deposit for the withdrawn amount.

Nomination facility available One can avail this facility for each & every account that open with us i.e. nominate differentpersons for different term deposit accounts can choose to change the nominee througha declaration in the appropriate form to revise the nomination during the term of thedeposit.

III. INVETSMENT SERVICES

At Kotak Mahindra Bank, one can recognise that financial needs vary, not just amongst individuals,but across the different stages of your life. They have years of experience in helping people puttogether an investment portfolio that works best for them.

DEMAT

Key Features

Efficient depository services that allow you to hold your shares in convenient, "demat" formats

Leverage opportunities in the stock-market when you spot them

It offers streamlined, efficient depository services that allow holding shares in the convenientdemat formats and leveraging opportunities in the stock-market when you spot them being abrokerage house, the company is in regular touch with the share market and its relativeindexes like NSE &BSE, NCDEX. NSDL, CSDL. Lets understand the relative terms:

1. SEBI


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(Stock Exchange board of India)It check out on NSE and BSE and all type of share trading (Bothprimary and secondary market)

2. NSE &BSE

Kotak Mahindra Bank allows to costumer to trade in share with NSE and BSE both (in primary andsecondary market both). In BSE costumer can trade in 2452 stocks and in NSE customercan trade in 933companies. The index of NSE is Nifty and for BSE Sensex

3. NSDL AND CSDL

Kotak Mahindra Bank allows the costumer to invest in mutual fund and bonds.NSDL (National security depository limited) and CSDL (Central security depository limited check outon this type of investment.

4. MCX AND NCDEX

Kotak Mahindra Bank also allow to costumer to trade incommodity by

5. MCX (Multi Commodity exchange), and

6. NCDEX(National Commodity Daily Exchange).

In NCDEX 55 commodity are to trade.

PRODUCTS OFFERED BY KOTAK MAHINRA BANK

The following are the various products of Kotak Mahindra Bank:

DEMAT & ON LINE TRADING ACCOUNT

The 3-in-1 account integrates your banking, broking and demataccounts. This enables you to trade inshares without going throughthe hassles of tracking settlement cycles, writing cheques andTransferInstructions, chasing your broker for cheques or Transfer Instructions etc.

INITIAL PUBLIC OFFERS (IPOS)

In the above products we have discussed investment in equity through secondary markets. Anotherway of investing in equity markets is through the primary market route. Whenever a companycomes out with an initial public offering you may choose to apply for the share. Based on number ofvalid application received, the company would then allot the share to applicants.The offline way of investing in an IPO is by filling physical application forms, cheques and submittingthe forms through your broker. With KOTAK MAHINDRABANK all you have to do is filling number ofshare on the site and submit.

DERIVATIVES

Customers with different types of risk profile can use derivatives.


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Hedging the cash market position is ideal for low risk profile. Taking advantage of arbitrage opportunity in equity and derivatives markets is ideal for low

risk profile. Taking a view on stock/index for as long as 3month period medium risk profile Speculative trading-high risk profile

KOTAK MAHINDRA BANK offers online investment in future and option, with benefit of automatedsettlements and online risk monitoring system

Mutual Funds Key Features

Assistance at every step of the investment process An experienced research team to analyse and research the Mutual Funds available in the

market

Portfolio assistance team analyses and researches the Mutual Funds available in themarket, helping you make more informed decisions. The recommendations take into account allrelevant factors including the investment philosophy of the Asset Management Company, portfolioquality, risk-adjusted returns and market trends. The Mutual funds on advisory list range from Debtto Equity funds and are drawn from top performing schemes of renowned Mutual Fund houses likeFranklin Templeton, Kotak, Reliance, Prudential ICICI etc. Relationship Manager will recommendthe funds that suit the investment objectives.

Instead of buying shares of different companies tracking the price movements performance

of the company, growth prospects of the industries etc. and then taking your own buy/selldecision, you may consider makinginvestment in equity/debt market through the mutualfund route.Mutual fund is a SEBI registered entity that pools the money of many individuals investors topurchase the stocks; bond or other financial instruments. Professional Managementand diversification are the two primary benefits of mutual fund investing. For beginners, orfor customer who are unable to spend time on researching stocks themselves, mutual fund is anideal route for an investment in equity. Investing in mutual funds offline involves, tracking down theagents appointed by themutual funds AMCs, filling lengthy forms, writingcheque, rushing to theoffice of the agents before the cut off timing to ensure that the desired NAV is allotted.

Bank assurance

They offer a range of carefully selected insurance policies across the entire spectrum of lifeinsurance products Relationship managers will analyze your insurance needs and develop thesolution that works best for you.

KOTAK INSURANCE

Kotak Insurance has a wide array of insurance plans that have been designed with the philosophythat different individuals are bound to have differing insurance needs. The ideal insurance plan isone that addresses the exact insurance needs of the individual that will depend on the age and life


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stage of the individual apart from a host of other factors. The various plans offered by KOTAKINSURANCE are as follows:

Kotak Smart Advantage Plan Kotak Eternal Life Plans Kotak Head start Child Plans Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Capital Multiplier Plan Kotak Term Plan Kotak Preferred Term Plan

CONVENIENCE BANKING

In today's day and age time is money. You work hard and have a busy schedule. Doing bankingshould be easy and convenient and not add to worries. Kotak Mahindra Bank realize this and havespecially tailored a wide range of value added products and services to make money work for you.These, coupled with the highest standard of customer care will make life simpler and easier.

Multiple Banking Channels

Today the technology driven banks are finding various means to reduce costs and reach out to asmany customers as possible spread over a diverse area. This has led to using multiple channels ofdelivery of their products.

ATM (Automatic Teller Machine)

An ATM is basically a machine that can deliver cash to the customers on demandafter authentication. However, nowadays we have ATMs that are used to vend different FMCGproducts also. An ATM does the basic function of a banks branch, i .e., delivering money on demand. Hence setting of newer branches is not required thereby significantly lowering infrastructure costs.Cost reduction is however possible only when these machines are used. In India, the average cashwithdrawal per ATM per day has fallen from 100 last years to 70 this year. Though the number of

ATMs has increased since last year, it is not in sync with the number of cards issued. Also, there aremany dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of theseodds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also holdthe keys to future operational efficiency Account holders of Kotak Mahindra Bank Saving Accounthaving Visa Electron Debit Card can access other Banks ATM machines unlimited times per monthfor free, after that the Account holder has to pay nothing for the transaction. But also holders ofATM cards cannot access machines belonging to other Banks.

Net Banking:iNet banking means carrying out banking transactions via the Internet. Thus the need for a

branch is completely eliminated by technology. Also this helps in serving the customer


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better and tailoring products better suited for the customer. A customer can view hisaccount details, transaction history, order drafts, electronically make payments, transferfunds, check his account position and electronically communicate with the bank throughthe Internet for which he may have wanted to visit the bankbranch.Net banking helps a bankspread its reach to the entire world at a fraction of the cost.

Phone Banking: This means carrying out of banking transaction through the telephone. A customer can callup the banks help line or phone banking number to conduct transactions like transfer offunds, making payments, checking of account balance, ordering cheques, etc. This alsoeliminates the customer of the need to visit the banks branch.

Mobile Banking:

Banks can now help a customer conduct certain transactions through the Mobile Phone withthe help of technologies like WAP, SMS, etc. This helps a bank to combine the Internetand telephone and leverage it to cut costs and at the same time provide its customer theconvenience. Thus it can be seen that tech savvy banks are tapping the entire abovealternative channels to cut costs improve customer satisfaction

SMS Banking:Kotak Mahindra Bank's SMS Banking service enables you to access your bank account,investment account and demats account on your Mobile Phone. Now get latest update onyour account balance, salary credits, large debits, large credits, holding value and muchmore, on your mobile anytime.

INTERNET BANKING:The Internet banking is changing the banking industry and is having the major effects onbanking relationships. Internet banking involves use of Internet for delivery of bankingproducts & services. It falls into four main categories, from Level 1 - minimum functionalitysites that offer only access to deposit account data - to Level 4 sites highlysophisticated offerings enabling integrated sales of additional products and access to otherfinancial services- such as investment and insurance.

DRIVERS OF CHANGE

Advantages previously held by large financial institutions haveshrunk considerably. The Internet haslevelled the playing field and afforded open access to customers in the global marketplace. Internetbanking is a cost-effective delivery channel for financial institutions. Consumers are embracing themany benefits of Internet banking. Access to one's accounts at anytime and from any location viathe World Wide Web is a convenience unknown a short time ago. The primary drivers of Internetbanking are:

Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers


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Internet Banking is the most technological advanced means to do Banking. Through this medium theAccount holder can do various types of transactions without having to leave his Office/Residence.The Account holder has the convenience to do transaction no matter where he is in the world at anytime of the day. Internet is the most cost effective medium of Banking from the point of view of theBanks; it costs a fraction to the Bank as compared to other mediums like Branch Banking or ATM.But this medium is not as favoured a medium as it in the west , the reasons for this is thatfirstly, this is a relatively new concept in India, secondly , general perception that this is not safe& thirdly, computers and internet are not widely spread all over the country.

MAIN CONCERNS IN INTERNET BANKING

In a survey conducted by the Online Banking Association, member institutions rated securityas the most important issue of online banking. There is a dual requirement to protect customers'privacy and protect against fraud.

A multi-layered security architecture comprising firewalls, filtering routers, encryption and digitalcertification ensures that account information is protected from unauthorized access:

Firewalls and filtering routers ensure that only the legitimate Internet users are allowed toaccess the system.

Encryption techniques used by the bank (including thesophisticated public key encryption)would ensure that privacy of data flowing between the browser and the Infinity system isprotected.

Digital certification procedures provide the assurance that the data you receive is from theInfinity system.

STRATEGIC ALLIANCES ENTERED BY KOTAK MAHINDRA BANK

NATIONAL ATM ALLIANCES:The Institute for Development and Research in Banking Technology (IDRBT), a groupestablished by the Reserve Bank of India (RBI) in1996, has planned to set up a nationalswitch to hook up all of the country's 10,000-odd ATMs. The idea of establishingATM interconnectivity through a national switch has been approved by the informationchiefs of various Banks. The expected cost of transactions routed through the switch is to beunder 10 rupees (21 cents U.S.) each, due to the high volumes of transactions -- almost100,000 per day.

CASH NET: It is an Alliance between Citibank, Industrial Development Bank of India, Kotak MahindraBank and UTI Bank. This is the country's first independent shared ATM network. IDBI Bankreceived permission from the Reserve Bank (RBI) to serve as the network's settlement bank.Cash net will give access to more than 1,300 ATMs for more than

6million debit cardholders of the member banks. The alliance would constitute about a thirdof the total card base and 15 percent of the ATM base in the country.


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Kotak Mahindra Bank and REDIFF.com: REDIFF.com India and Kotak Mahindra Bank have entered into an alliance to provide onlineand offline banking and related services to the Indian consumer. The alliance will enable

information on the entire range of the banks consumer banking products to be madeavailable to the 6.4 million online customers of Rediff.com. The services offered includedetailed information on various deposits, loans and mortgages, credit cards, mutual fundsand insurance products of the bank. Users will be able to directly interact with the bank andrequest for products online.

IV. OTHER SERVICES

BANKING HOURS: Kotak Mahindra Bank Account holders have been able to infer that Branch Banking is thesecond most Frequent Point of Interaction with the Bank. The Average Banking Hours is avery important aspect associated with any Bank. In todays fast paced life where people whohold Accounts with the Bank are busy working it is important that they can find a way to visitthe Bank without having to miss out on work. The Average Banking Hours of Kotak MahindraBank is from 9am to7pm, the Bank is open to the public for ten hours. These timings areconvenient for especially those Account holders who are working, these people can visit theBank after their Office finishes.

Apart from the Average Banking Hours Kotak Mahindra Bank offers to its Account holders 24Hour Branch, 365 Days Branch and the facility of Sunday Banking. Kotak Mahindra Bank isthe only Bank which offers a 24 Hour Branch in India, this is a big boon for peoplewho cannot take the time out to visit the Bank during the normal working hours and is alsovery handy during emergencies. The 365 Day Branch of Kotak Mahindra Bank is also uniqueand the only other Bank offering this service is ABN Ambro, this Branch is open regardless ofthe fact that it is a Sunday or a public holiday. Sunday Banking is very useful for people whoare busy throughout the week and the only day when they find the time is Sunday.Other Banks offering this service apart from Kotak Mahindra Bank are ABNAmro and

CITIBANK.

Best Compliments Card the perfect gift: It is a prepaid card from Kotak Mahindra Bank. Itlets your loved ones choose their own gift or shop or enjoy at anyplace that accepts Visa cards, be it a shopping mall, a restaurant or a multiplex. So go aheadand give someone the perfect gift!

No Kotak Mahindra Bank account required Not restricted to a single brand or outlet Accepted at over 3lakhs merchant establishments in India that accept Visa cardsCan be used

at your convenience

No need to spend the entire value in a single purchase


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Attractively packaged and ready-to-gift Available at all Kotak Mahindra Bank branches Valid for two years from date of issue of card


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Chapter 4

ANALYSIS AND FINDINGS Survey Conducted on 155

Respondents

DURATION WITH BANK :

The study of 50 Kotak Mahindra Bank respondents consisted of a majority of customers who hadbeen with the Bank for a reasonable amount of time. This is good as these customers have had theopportunity to properly access the service level of the Bank, and can compare their experiences of

Kotak Mahindra Bank with banks they have previously and are currently dealing with. Out of thetotal respondents only 3% have been with the Bank for less than 6 months, the rest 97% have hadthe opportunity to know about the strengths and weaknesses of the Bank.

Another inference that we can draw from this study is that couple of years the Bank hasbeen actively acquiring new customers as from the survey we can see that about 80% of thecustomers have opened their accounts during the past two years. The reason for this couldbe that during the past two years the Bank has been able to convince many prospectivecustomers about the superior service it is able to offer in comparison to competing Banks.Another reason could be that the customer base of the Bank has increased due

to sheer word of mouth of the Banks millions of satisfied customers.

Duration with the bank

1 to 2 years

Over 2 Years

Less than 6 months

6 months to 1 year


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REASON FOR CHOOSING BANK : If the Bank could get to know of that very compelling factor that convinced the customer toopen the account then the Bank could use this in its favour to attract more customers. Fromthe study conducted the factor which has come out strongest in this regards is the getting44% of the responses, going deeper into this response by asking the respondent what is thefactor they include in this Other Reasons is that most people are not the deciding factorwhen they open a saving account, this is done so by their employers. The customers salaryaccounts are created by the companies in which they work.

MOST FREQUENT POINT OF INTERACTION WITH THE BANK: The Banks are very interested to know the most popular Point of Interaction with the Bankas if the Bank is lacking in one of these steps can be taken to make the situation better. Fromthe study we can see more than half (more than 50%) of the total respondents feel that theyinteract most with the Bank with the help of ATM. Hence the importance of ATM cannotbe over stated. The Second most popular point of interaction that arises from the study isthe Branch with 32% of the respondents favouring this option. Kotak Mahindra Bank is

unique in an aspect that it follows the Any Branch Banking where in the Account holdercan use any of the Banks 156 Branches all over the country. An aspect that customers reallyappreciate is the 24 hour Branches and the 365 Days Branches of Kotak Mahindra Bank. The24 Hour Branch of Kotak Mahindra Bank is located at sector 18 Noida. Apart from theseBranches in Mumbai and other cities in India Kotak Mahindra Bank is the only Bank whichhas the facility of a 24Hour Branch. As for a 365 Day Branch the only Bank having this facilityapart from Kotak Mahindra is UTI Bank. The third most Frequent Point of Interaction isPhone Banking with 11.5% of the respondents favouring this medium. Phone Banking is oneof the new age Banking techniques. It is in its infancy in India and people have not taken to itas is the case in other Developed Countries in the World. In the study it was seen thatcustomers have mixed feeling when it comes to Phone Banking as sometimes they do not

34%

44%

16%

0%

Reason for choosing the bank

Recommended by family/friend

Brand Name reputation of thebank

Branch near office/residence

Other Reasons


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find it as an effective alternate to traditional forms of Banking. The forth most FrequentPoint of Interaction with the Bank is Internet Banking with 4% of the respondents favouring

this medium.

Internet Banking is the most modern means of Banking available to the customers but dueto the general perception that this medium is not safe it is not used by many people. In our

study only 60% of the total respondents have at least once used Internet Banking. The twooptions which were not favoured by any respondents as the most Frequent Point ofInteraction are Drop Box Facility and Door Step Banking

OVERALL SATISFACTION LEVEL: Any service provider would want their customers to have a high Overall Satisfaction level.Kotak Mahindra Bank has scored very well in this regard. The most important thing is that norespondent has complained that they are overall dissatisfied with the bank.

This is a very important finding because this shows the effort Kotak Bank puts in providing

their customers a superior service has not gone waste. More than half of the totalrespondents (52%) say that they are somewhat satisfied with the overall service of the Bank.

About 30%of the total respondents say that they are Very Satisfied with their Overall Experiencewith the Bank.

OVERALL SATISFACTION LEVEL

0

5

10

15

20

25

30

Mode

Visit Branch

ATM

Phone Banking

Drop Box

Internet Banking

Door Step


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Banks are institutions which are backed up by a large amount of capital; todays Banks are spendinga huge amount of money on technology, improvement in infrastructure, etc. But even todaythemost lasting impact about any Bank comes from the customersexperience with the Bank Staff.Any paining experience can have a lasting impact on the mind of the customer; this can force him tochange Banks or even discourage others from joining the Bank. Hence Banks should train theiremployees to maintain good relations and be cooperative with the customers.

From the results of the findings we can see that Kotak Mahindra Bank has been successful inmarinating a high level of customer satisfaction with the employees. Only 4% of the totalrespondents included in the study were dissatisfied. The number of respondents who were VerySatisfied represented 30% of the total respondents while those who were Somewhat Satisfied were46% of the total. The respondents who were Neither Satisfied nor Dissatisfied are 20% of the total.

SATISFACTION LEVEL WITH BANKING HOURS (10 am to 7 pm)

SATISFACTION LEVEL WITH BANKING HOURS(10 am to 7 pm)

From the analysis of the data that has been collected from Kotak Mahindra BankAccount holders we can see that majority of the respondents are satisfied with the Average BankingHours.The respondents who are Somewhat Satisfied with the BankingHours consist of 44% of thetotal, while 28% of the total respondents studied say that they are Very Satisfied.In all 72% of the total respondents are satisfied with the Banking Hours of Kotak Mahindra Bank. The

0

5

10

15

20

25

VerrSatisfied

SomewhatSarisfied

Neutral SomewhatDissatisfied

VeryDissatisfied

Satisfaction with Banking Hours

Satisfaction with Banking Hours


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respondents who are neither Satisfied nor Dissatisfied consist of 20% of total numberstudied, while 8% of the respondents are somewhat dissatisfied.

THE RESULTS OF A GENERAL SURVEY WHICH WAS CONDUCTED ON 10DIFFERENT BANKS IS AS FOLLOWS:

BANKS STUDIED

This study involved mainly Banks operating in the Private Sector, there are some Banks from thePublic Sector but these are at a relatively lower proportion. The Private Bank include both Indian andForeign Banks, the Indian Banks included ICICI Bank, HDFC Bank While the Foreign Banks apart fromKotak Mahindra Bank studied included CITIBANK, HSBC, ABN Amro. The Government Banks includedmost noticeably State Bank of India (Indias Oldest and largest commercial Bank) , Bank of Baroda ,apart from other Banks.

MOST IMPORTANT QUALITY IN A BANK

From the survey of more than hundred respondents belonging to different Banks we can to theconclusion that Efficient Service offered by Banks is considered most important by account. Thisstudy involved mainly Banks operating in the Private Sector, there are some Banks from the PublicSector but these are at a relatively lower proportion. The Private Bank include both Indian andForeign Banks, the Indian Banks included ICICI Bank, HDFC Bank While the Foreign Banks apart fromKotak Mahindra Bank studied included CITIBANK, HSBC,ABN Amro. The Government Banks includedmost noticeably S tate Bank of India(Indias Oldest and largest commercial Bank) , Bank of Baroda ,apart from other Banks.

0

5

10

15

20

25

Banks Studied

Banks Studied


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MOST IMPORTANTANT QUALITY IN A BANK

62% of the respondents felt that the Bank should concentrate more on this service aspect.Thenext aspect which is considered highly important by the Accountholders of various Banks is the Staffof the Bank.

It is true that todays Banking far less of Branch Banking as it was the case a few years ago , todayAccount holders have a constant interaction with non-human interface like ATM machines , InternetBanking , Drop Box , Even phone Banking when customers do not interact in a face to face mannerwith the Bank employees .But in the minds of the respondents it is very important that the Staff theBank employs should be cooperative, courteous and qualified to solve the various problems of theAccount holders. The percentage of respondents favouring Staff quality as most important was 26%of the entire sample size. The most frequent point of interaction with the Bank is ATM facility,the Account holders whether in Private/Foreign sector or theGovernment sector have been providedwith ATM facility by their respective Banks. To judge the performance level of any Bank today it is

crucial that the ATM service of the Bank be studied, this includes not only the number of ATMmachines installed by the Bank, but also how technologicallyadvanced the machines are(number of transaction that can be done with the ATM Facility), the effort Bank undertakesto maintain the machines and also the overall experience of the Account holder with the service. Thepercentage of respondent considering the ATM service as most important was 12% of the totalsample size. But from the respondents who were questioned none of themsaidthat the Dcor/Ambience of the Bank Branch was most important.

On further Questioning it was revealed that they did want well-maintained Branches/Other BankInteraction points but this was not the most important aspect.

PRIVATE BANKS PROVIDE SUPERIOR SERVICES COMPARED TO GOVERNMENT BANKS?

26%

12%

0

62%

Most Important quality in the Bank

Courteous Staff

ATM

Dcor

Effcient Service


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Chapter 5

CONCLUSION

Kotak Mahindra Bank is Leading Bank in the country, it provides a variety of products and servicesto different segments of customers. The Bank aims to serve customers from teenagers to seniorcitizens, hence different products designed to suit specific requirements of the above aims to serveall classes of the society from the salaried middleclass to the high income business class. Customersare categorized and segmented according to their requirements and needs.For Example, the EDGESaving Account aims to serve middleclass customers so minimum balance required to be maintainedisRs. 10000. While the PRO and ACE Saving Accounts are targeting the high income customers, theminimum balance requirement is Rs. 20000 and Rs. 75000.

Customers who are more profitable to the Bank (High Value Customers) are provided specialfacilities. Priority banking is meant to serve these high value customers. The Bank prides itselfwith the ability to provide differentiate products in the crowed market of saving accounts. Bankoffers the free home baking, special co-branded debit cards (Smart fill Debit Card) which makes itsproduct unique. The Bank is also involved in marketing activities which serves as a medium ofadvertisement for the Bank. These are as follows:

Extended happy hours at certain pubs in Lucknow for the Banksaccount holders. Gift Vouchers on making utility payments, such as cell phones,electricity and MTNL bills. Free Gifts like caps, pens/wollets to its customers. Free add-on cards for relatives. The Bank wants its customers to transact more through Internet Banking and ATM, Rather

than the customers using the branch. The Debit Cards provided by the Bank are Internationally Acceptedaround the world, hence

giving the customers the convenience to transact anytime, anywhere. The Bank has tied up with other Banks so that its customers canuse other Banks ATM

facility for free transactions The Bank also provides DEMAT account and also sells

MutualFunds, this provides the Bank and Government additional revenue. The Bank has been very successful in enlarging its customer baseduring the last couple of

years.

The Number One Reason of people choosing Kotak Mahindra Bank is the Brand Name/Reputationof the Bank. Hence it should be careful that the Brand name and Goodwill the Bank has earnedis notdiluted.

The Biggest competitors of the Bank are ICICI Bank and HDFCBank and STANDRAD CHARTERED.

ATM Facility is most popular way to transact with the Bank.

Overall the customers appreciate the service and productsoffered by the Bank and are willing torecommend the Bank to their acquaintances, but more attention has to paid towards:

Increasing the number of ATM machines.


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Improving Internet Banking Facility.

GENERAL FINDINGS

ATM Facility is more widely used by customers belonging toPrivate/Foreign Banks ascompared to Government Banks.

Customers value Efficient Service over every other aspect, this isfar more important than thenumber of ATM machines, Staff, Dcor of Bank.

Reputation of Bank is most important when it comes to choosingespecially a Private Bank. The general perception is that Private Banks provides better services as compared to a

Government Bank. People realize that Private Banks are as safe as compared toGovernment Banks. Advertisements and Freebies can be used to attract morecustomers.


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Survey-I: Commercial Banking in India:

General Survey 2013

Dear Respondents, This survey has been designed by Akash Dixit, student NIILM CMS, for thecompletion of Summer Internship Project." Product , Services and Customer satisfaction in BankingIndustry" .

Name

City

Age

o Below 25

o 25 to 40

o 40 to 55

o Above 55Occupation

o Business

o Professional

o Service

o Student

o Others

Annual Income

o Less than 1.5 lac

o 1.5 lac to 3 lac

o 3 lac to 5 lac

o Above 5 lac You have savings accounts in which bank/s

Please select the one which is used the most

o Nationalized banks


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o Private BanksMention the name of the bank/s

Apart from saving in a bank account where do you usually invest

o Property

o Gold

o Shares

o Other:Do you use ATM card fecility

o Yes

o NoDo additional schemes/benefits (free insurance, free debitcard,privileges/discounts on use of debit card, etc.) offered by bankshave abearing on your decision when you open a saving bankaccount

o Yes

o NoApart from savings account what are other deposits with the bank

o Current Account

o Term Deposit

o Fixed Deposit

o Other:Loans taken from the bank

o Car Loan

o Personal Loan

o Home Loan

o Education Loan

o Cash credit

o Other:Did you face harassed with the banking during the documentation of the loan

o Yes

o NoDoes the bank makes sure that you know the latest policies

o Yes


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o NoDo you feel the bank is customer friendly and are the employees ready to help

o Yes

o NoDo you find the enough number of the bank ATMs in the city

o Yes

o NoOn the scale please mention your overall satisfaction with the bank

Here 1 means poor , 5 means excellent and 3 means average

1 2 3 4 5

Select a value from a range of 1 to 5.


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Survey II- QUESTIONNAIREDear Corporate respondents, I Akash Dixit have designed this survey to understand theworking capital financing.

Name of the Organisation:

Business Overview:

Inception of the Business:

Competitors:

Approximate Turnover:

Trade Customer / Importer/ Exporter:

If Importer, then:

Buyers c redit required

Margin IBR linked

Bill collection and charges

If exporter, then:

Margin /Working capital Requirement

Export credit

Bill handling charges

Packing Charges

Bill Discounting

Local Bill Discounting

If working capital availed from any bank and percentage impact on profit


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BIBLIOGRAPHY

There was immense need and flow of the information whileconducting the analysis as well as whilewriting the thesis report, which was gathered through various sources mentioned below:

Various Magazines and Newspapers such as

OutlookFinancial TimesThe Economic TimesThe Times of IndiaThe Hindustan Times

Other References

Questionnaires, Journals, Broachers and various other documentsgathered and collected frombank and various other sources such asATM centers and associates.

Internet

www.kotakmahindrabank.co.in

www.google.com

www.economictimes.com
http://www.citibank.co.in/http://www.google.com/http://www.economictimes.com/http://www.economictimes.com/http://www.google.com/http://www.citibank.co.in/http://www.citibank.co.in/http://www.citibank.co.in/


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SYNOPSIS

The central bank of India is the Reserve Bank: most largecommercial banks were nationalized in1969, with more beingnationalized in 1980. The Department of Banking at the Ministry of Financecontrols all banking. The State Bank of India, the largest commercial bank, handles some of theReserve Banksro les. Cooperatives and credit societies are an importantsupplement to the privatebanking industry, especially in rural areas. The Entry of Foreign Banks in the Early 1990s has broughtabout a Revolution in the Banking industry. The superior service levels of these Banks have forcedeven the Nationalized Banks to wake up to the reality that if they do not live up to the customers

expectation they will soon cease to exist. Indian Banking Industry today is in the midst of an ITrevolution. A combination of regulatory and competitive reasons has led to increasing importance oftotal banking automation in the Indian Banking Industry.

Earlier profitability gained only secondary importance; sincebanks lived in the comfort of acontrolled environment. However, today banks cannot survive only with the Government support.They have to set goals of profitability along with service and set targets and evolve strategies toreach them. There is certainly a paradigm shift in banking in India in

therecent past. At present profitability, capital restructuring andtransparency is consideredimportant and significant for banks. Also, banks in India have started realizing the need to bencustomer focused that in turn leads to customer appreciation , which is imperative for survivaland growth. The first change along this line was brought in by the foreign banks with their emphasison high quality and efficient service combined with technological advantages like satellite bankingand tele-banking manned by skeletal staff and lesser number of branches. Further, development ofspecial manpower, innovative products, technology exploitation and personalized services play acrucial role on the banking industry today, since the customer has more options in choosing bankthus leading to consumerism in the banking sector. Also, since customers are becoming moresophisticated and educated, their expectation from the neighbourhood bank is increasing. To sum,

the new private sector banks are poised to redefine banking sector in India. Though they dont posea threat to the existing private banks they will certainly force them to gear up their strategies toremain in the field. The last few years have seen a sea change in banking strategies, withmore focus on quality. The adoption of aspecialized customer-oriented focus is fast getting wideracceptability. In a market that keeps growing in depth and diversity , niche banking is new mantraadopted by all.

Thus,instead of targeting an entire market segment, banks haveadopted a specific business focus toreach their target audience.Over the last few years, the communication style too haschanged withrespect to the banking industry. Communication has shifted from branding the bank to branding

banking products, highlighting service commitments, convenience, etc.


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Further, branding of banking products such as home loans, consumer durable loans, tele banking,ATMs, net banking etc have started taking place, especially after the entry of foreign banks andprivate sector banks which had the advantage of the latest technology.

Marketing Strategies at Kotak-Mahindra Bank By AKASH DIXIT

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