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PROJECT REPORT
ON
“PRODUCT/SERVICES AND
MARKETING STRATEGIES”
Undertaken At
“KOTAK MAHINDRA BANK”
Of
Session: 2005-2008
TECHNIA INSTITTUTE OF ADVANCED STUDIES
(Approved By AICTE. Govt. Of India &Affiliated to GGS Indraprastha University, Delhi)
3, PSP Institutional Area, Madhuban Chowk, Rohini, Delhi-110085,
Ph. No: 011-27555121,122,123,124 Fax:-01127555120
1
Declaration
I h a v e n o t s u b m i t t e d t h i s wo r k a n ywh e r e e l s e f o r a n y
other degree or diploma.
Gaurav Garg
B.B.A VI Sem
0691701705
2
Table of contents
PA G E
S. NO C O NT E N T S N O.
1. A C K N O W L E D G E M E NT 4
2. C E RT I F I C AT E O F A P P R OVA L 5
3. E X E C U T I V E S U M M A RY 6
4. RESEARCH OBJECTIVE 7
5. R E S E A R C H M E T H O D O LO GY 8-12
S O U R C E S O F D ATA
RESEARCH DESIGN
D ATA S O U R C E S
SAMPLE SIZE
S C O P E O F T H E S T U DY
L I M I TAT I O N S
Questionnaires 70-73
Bibliography 74
Synopsis 75-78
3
ACKNOWLEDGEMENT
A t t h e o u t s e t , I wo u l d l i k e t o t h a n k t h e s t a ff o f K O TA K
o p e r a t i n g m e i n m y p r o je c t a n d a s we l l a s g i v i n g m e
I t h a n k m y P r o je c t G u id e Ms . B h a wa n a D h a wa n . F o r h e r
e n c o u r a g e m e n t a n d c o n t r ib u t i o n o f t i m e , c o u n s e l a n d
materials
A h e a r t f e l t t h a n k t o t h e m a n y r e s p o n d e n t s su r v e ye d
wh o s e i d e a s , c r i t i c a l i n s ig h t s a n d su g g e s t i o n s h a v e
b e e n in v a l u a b l e i n t h e p r e p a r a t i o n o f t h i s r e p o r t .
4
C E R T I F I C AT E
D AT E :
TO W H O M S O E V E R I T M AY C O N C E R N
T h i s i s t o c e r t i f y t h a t t h e p r o je c t wo r k t i t l e “PRODUCT
AND MARKETING STRATEGIES REGARDING KOTAK
MAHINDRA BANK” made by GAURAV GARG (0691701705) is an
authentic work carried out by him under my guidance and supervision
in the Marketing department of Tecnia Institute Of Advanced Studies.
The report submitted has been found satisfactory for the partial
fulfillment of the degree of Bachelor of Business Administration.
5
EXECUTIVE SUMMARY
T h e p r o je c t i s b a se d o n t h e s a l e s s t r a t e g i e s f o r t h e
B a n k i n g p r o d u c t s wi t h a s p e c i a l r e f e r e n c e s t o K O TA K
MAHINDRA BANK and the consumer perception about
the same.
• F ir s t and Foremost, the purpose of K O TA K
MAHINDRA BANK is to fulfill the needs for
investment under one roof.
• T h i s p r o je c t s h o ws , t h e c o m m o n m a n h a s s t a r t e d
capital market term like bull and bear explode
new time.
• It gives the detail view of the regulatory
f r a m e wo r k f o r t h e K O TA K M A H I N D R A B A N K
• T h e f o c u s t h e s h i f t t o v a r i o u s p r o d u c t s o f K O TA K
M A H I N D R A B A N K t o c a t e r t o t h e n e e d s su c h a s
return explanation, financial position, risk
tolerance, etc.
• T h e n e x t p h a s e l o o k u p t h e i n v e st m e n t i n g r o wt h
o r i e n t e d s t o c k wh i c h a r e a v a i l a b l e a t a t t r a ct i v e
r e l a t iv e v a l u a t i o n .
F u r t h e r t o t h i s , p r o je c t p r o c e e d s wi t h t h e r e se a r c h
d e s i g n e d i n t h e l i g h t o f t h e c o r e o b je c t i v e s o f t h e
s t u d y a l o n g wi t h t h e s u b o b je c t iv e s t h a t a r e g iv e n
due consideration throughout the research. It also
e n l i s t s a l l t h e d a t a s o u r c e s a s t o b y wh i c h m e a n s
t h e s t u d y h a s g a in e d m o m e n t u m . T h e d a t a h a s
b e e n c o l l e c t e d b y v ir t u e o f q u e s t i o n n a ir e s a n d
we b s i t e s , r e s p e c t i v e l y. T h e s c o p e o f t h e s t u d y i s
6
s u g g e s t e d i n f a v o r o f t h e c o m p a n i e s s t r iv i n g t o
e m e r g e a s s u p e r p o we r s d r a wn o u t b y t h e s u r v e y.
T h e s e c o m p a n i e s c a n f i n e t u n e t h e i r p r o s p e c t iv e
ones and can grab the opportunities of the
t r a n s f o r m i n g t h e we a k n e s s o f o t h e r in t o t h e ir o wn
strength.
RESEARCH OBJECTIVES
Various Objectives for conducting the research and analysis are listed
as under:
1. Access the Market Potential of Kotak Mahindra Bank Saving
Account with the help of a survey conducted on a total of 155
Respondents (50-Kotak Mahindra Bank customers, 100-Other
Banks customers).
2. Study how new distribution channels such as Internet Banking,
ATM facility, Phone Banking have changed the face of the Banking
industry.
3. Study the impact of a customer centric approach being followed by
the Bank, and what is its benefit.
4. Compare the services offered by Kotak Mahindra Bank and the
customer’s satisfaction level of the same with that of other Banks
in the Private and Government sector, and to access where the
Bank has to improve.
5. Consideration of various promotional and marketing and
advertising strategies of Kotak Mahindra to the satisfaction among
its ultimate users and consumers
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consideration the services, advertising and marketing strategies of
the Bank.
REASEARCH METHODOLOGY
As the tithe of the project suggests the purpose to study the access of
prudential in area like Pitampura.
Research comprise defining and redefining problems, formulating
hypothesis or suggested solutions; collecting, organizing and
evaluating data; making deductions and reaching conclusions; and
at last carefully testing the conclusions to determine whether they
fit the formulating Hypothesis.
SOURCES OF DATA
Data is collected from primary as well as secondary source. For
primary data customer were personally intervened and for secondary
data. Annual report, journals, internet and personal interview.
METHODOLOGY:
The methodology adopted in conducting this survey was quite simple.
First there was collection of data from various sources including
personal interview. Then after scanning and properly analyzing and
8
interpreting the information available on hand, a final report was
prepared.
RESEARCH DESIGN
Type of Research: - Descriptive research
Descriptive research is also called Statistical Research. The main goal
of this type of research is to describe the data and characteristics
about what is being studied. The idea behind this type of research is
to study frequencies, averages, and other statistical calculations.
Although this research is highly accurate, it does not gather the
causes behind a situation.
The regular interaction with the Customers and the Line Managers
revealed about the various strategies involved in performing business
activities and gathering data using various techniques and software
applications
9
Descriptive research includes Surveys and fact-finding enquiries of
different kinds. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what
has happened or what is happening.
DATA SOURCES
SECONDARY DATA.
For the company information I had used secondary data like
brochures, web site of the company etc.
The Method used by me is Survey Method as the research done is
Descriptive Research.
RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.
SAMPLE SIZE:
The survey is conducted among 155 respondents.
10
Simple statistical tools have been used in the present study to
analyze and interpret the data collected from the field. The study has
used percentile method and the data are presented in the form of
diagrams.
11
SCOPE OF THE STUDY
12
LIMITATIONS
Time constraint.
Biases and non-cooperation of the respondents.
Financial constraint.
Geographical selectivity in study limiting to Delhi city only.
People are not interested in giving personal opinion.
13
CHAPTER-1
INTRODUCTION
14
Kotak Mahindra has international partnerships with Goldman Sachs
(one of the world's largest investment banks and brokerage firms)
and Old Mutual (a large insurance, banking and asset management
conglomerate).
Finance Limited. Since then it's been a steady and confident journey
to growth and success.
15
• 1987 : Kotak Mahindra Finance Limited enters the Lease and
Hire Purchase market
• 1990 : The Auto Finance division is started
• 1991 : The Investment Banking Division is started. Takes over
FICOM, one of India’s largest financial retail marketing
networks
• 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 - Kotak
Mahindra Capital Company
• 1996 : The Auto Finance Business is hived off into a
separate company - Kotak Mahindra Primus Limited. Kotak
Mahindra takes a significant stake in Ford Credit Kotak
Mahindra Limited, for financing Ford vehicles. The launch of
Matrix Information Services Limited marks the Group’s entry
into information distribution.
• 1998 : Enters the mutual fund market with the launch of Kotak
Mahindra Asset Management Company.
• 2000 : Kotak Mahindra ties up with Old Mutual plc. for the
Life Insurance business.
Kotak Securities launches kotakstreet.com - its on-line broking
site. Formal commencement of private equity activity through
setting up of Kotak Mahindra Venture Capital Fund.
• 2003 : Kotak Mahindra Finance Ltd. Converts to bank
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CHAPTER-2
COMPANY’S PROFILE
Established in 1984, The Kotak Mahindra Group has long been one
of India’s most reputed financial organizations. In Feb 2003, Kotak
Mahindra Finance Ltd., the group’s flagship company was given the
license to carry on banking business by the Reserve Bank of India
(RBI).This approval creates banking history since Kotak Mahindra
Finance Ltd is the first company in India to convert to a bank. The
license authorizing the bank to carry on banking business has been
obtained from the RBI in tune with Section 22 of the Banking
Regulation Act 1949.
KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd
and Mr. Sidney &A.A.Pinto under the name of Kotak Capital
Management Finance Ltd on 21st Nov 1985 and obtained a
Certificate of Commencement of Business on 11th Feb 1986.
The bank customers have access to entire VISA network of 4500
ATM’S in India and 800000ATM’S worldwide accepted in more than
56000 establishments across India and 10 million worldwide. The
customer also has access to over 800 ATM’s with sharing
arrangements with UTI BANK, of these 125 are in the NCR.
17
Key group companies and their businesses
18
trade. KMP continues to be among the leading car finance companies
in India.
Kotak Mahindra Asset Management Company
Kotak Mahindra Asset Management Company 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 20,800 crore and offers
schemes catering to investors with varying risk-return profiles. It was
the first fund house in the country to launch a dedicated gilt scheme
investing only in government securities.
Kotak Mahindra Old Mutual Life Insurance Limited
Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture
between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life
Insurance helps customers to take important financial decisions at
every stage in life by offering them a wide range of innovative life
insurance products, to make them financially independent.
19
BOARD OF DIRECTORS
Director
and
Vice Chairman and Managing Director of Mahindra and
Mahindra
Limited
20
CHAPTER-3
Product Detail
Kotak Mahindra Bank is one of the prominent
subsidiaries of Kotak Mahindra group. The activities of
t h e c o m p a n y b e i n g p a r a l l e l t o i t s o b je c t iv e a r e v e r y wi d e
and cover all the components of a Bank. The Basic
area of Operations is the Banking business, other
products are meant for the regular revenue generation.
Being a Banking house, the company is in regular touch
wi t h Banking Ac c o u n t s , I n ve s t m e n t S e r vi c e s ,
C o n v e n i e n c e B a n k i n g a n d O t h e r S e r vi c e s .
Kotak Mahindra Bank, it's not about selling you many different
products — it's about working out a holistic, pragmatic solution that
addresses your financial needs. Through their varied products,they
commit themselves to becoming “banker” to the customer rather than
being “asset financier” to our customers.
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Banking Accounts
Savings Account
Current Account
Term Deposit
SAVINGS ACCOUNT
22
Thus the three account opening options in savings account are as
mentioned above:
Wide ATM access through the Kotak Mahindra Bank Debit Card
One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash
or enquire balance at no extra charge!
Use the free Payment Gateway to make online payments for utility
bills, credit cards, online trading of shares or even online shopping.
23
Quick and easy funds transfer
One can open an investment account, and use the Net Banking
facility to purchase/redeem mutual funds online while directly debiting
/ crediting your Bank Account. Besides this you get a consolidated
view of all your mutual fund investments across schemes with
updated returns status, latest NAV information and research reports.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep
facility that automatically sweeps out idle funds, above a threshold,
from your account into Term Deposits. These Term Deposits sweep
back into your account to meet fund requirements when your
withdrawals exceed the balance available in your account, thereby
providing you maximum liquidity.
24
♣ PRO SAVINGS ACCOUNT:
Walk into any VISA ATM in India to check balance or withdraw cash
absolutely free. no longer have to worry about locating your Bank or
Partner Bank ATM – Use the first VISA ATM that you spot, for cash
withdrawal or balance enquiry transactions.
One can open an investment account, and use the Net Banking
facility to purchase/redeem mutual funds online while directly debiting
/ crediting bank account. Besides this get a consolidated view of all
the mutual fund investments across schemes with updated returns
status, latest NAV information and research reports.
25
Financial payments facilitated through the savings account
Use our free Payment Gateway to make online payments for utility
bills, credit cards, online trading of shares or even online shopping.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep
facility that automatically sweeps out idle funds, above a threshold,
from your account into Term Deposits. These Term Deposits sweep
back into your account to meet fund requirements when your
withdrawals exceed the balance available in your account, thereby
providing you maximum liquidity.
You get a one point contact for all your banking related queries and
transactions. Your relationship manager will also help you with
financial planning and sound investment decisions.
26
♣ ACE SAVINGS ACOUNT:
Use the free Kotak Payment Gateway to make online payments for
utility bills, credit cards, online trading of shares or even online
shopping. All this at the click of a mouse!
27
Quick and easy funds transfer
One can issue demand drafts or send cheques for collection at all
branches for no extra charge.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep
facility that automatically sweeps out idle funds, above a threshold,
from your account into Term Deposits. These Term Deposits sweep
back into account to meet fund requirements when withdrawals
exceed the balance available in the account, thereby providing
maximum liquidity.
CURRENT ACCOUNT
28
Kotak Mahindra Bank offers unparalleled advantages with its three
Current Account offerings. Whether small/ mid size business or an
enterprise spread across multiple locations in the country, would find
a Current Account that's just designed for you. These Current
accounts offer attractive returns along with personalized banking
services at three convenient average quarterly balances(AQB)levels
of Rs. 25000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 50000
(KOTAK PRO SAVINGS ACCOUNT) and at Rs250000(KOTAK ACE
SAVINGS ACCOUNT).The average quarterly balance levels as well
the corresponding services and benefits try to ensure the various
customer needs and requirements. With features ranging from Free
DDs, Free Cheque Collection, Free At -Par Cheque facility to Free
Trading Account & free Demat Account, and more!
29
Multi City Banking
Kotak 2-Way Sweep ensures that money never stops working for
you. Daily balances, above a threshold level, in Current Account are
automatically swept out into Term Deposits (TD). This 'swept out
amount' is brought back into account to meet fund requirements
when withdrawals exceed the balance available in the account (or
when the account balance goes below the specified threshold level.)
With Kotak 2-Way Sweep you enjoy the twin advantages of attractive
returns & maximum liquidity.
At-par Cheques
Get free At-par Cheques that are treated as 'local clearing' cheques
across all branch locations. All these at nominal costs.
Cheque Collection
30
All Outstation cheques, drawn on any of branch locations, are
collected 'at nominal charge' for you. The strong network of
correspondent banks enables us to collect cheques from 1600
locations across India at faster speed and minimal cost
Our Mobile Banking & Alerts service enables to access bank account
on Mobile Phone. One can access all your standing instructions (SI),
any large credits or debits, available balance, balance below AQB,
any SI failure and SIs successfully executed will be intimated to you
via SMS
♣ PRO Current
Accountt
You need a well equipped bank account to keep pace with you in the
ever changing business scenario. We offer you the Kotak Pro Current
Account, armed with Kotak 2-Way Sweep, as well as an entire gamut
of Banking Privileges and 'user-friendly' Convenience Banking
facilities. The feature rich Kotak Pro Current Account is the ideal way
to make your money work harder.
31
Key Features
In the need of a well equipped bank account to keep pace with you in
the ever changing business scenario. They offer you the Kotak Ace
Current Account, armed with Business benefits and exclusive Ace
Privileges and an entire gamut of banking conveniences especially
designed for you. The feature rich Kotak Ace Account is the ideal way
to make money work harder
32
Term Deposits
Key Features
• Ease and convenience of operation
Give your portfolio stability of returns and safety and liquidity. Invest
in Kotak Bank Term Deposit. It offer attractive returns on term
deposits and investing in them is really simple and convenient.
For the first time in India, New to Bank customer can also apply
online for term deposit.
33
Liquidity through overdraft or sweep-in facility
One can avail this facility for each & every account that open with us
i.e. nominate different persons for different term deposit accounts can
choose to change the nominee through a declaration in the
appropriate form to revise the nomination during the term of the
deposit.
34
INVETSMENT SERVICES
just amongst individuals, but across the different stages of your life.
DEMAT
Key Features
• Efficient depository services that allow you to hold your shares
in convenient, "demat" formats
35
It offers streamlined, efficient depository services that allow to hold
shares in the convenient "demat" formats and leverage opportunities
in the stock-market when you spot them Being a brokerage house,
the company is in regular touch with the share market and its relative
indexes like NSE &BSE, NCDEX. NSDL, CSDL. L e t ’s u n d e r s t a n d
the relative terms :
N S D L AN D C S D L
Kotak Mahindra Bank a l l o w t o co s t u m e r t o i n v e s t i n m u t u a l
fund and bonds. NSDL (National security depository
36
l i m i t e d ) a n d C S D L ( C e n t r a l se c u r i t y d e p o s i t o r y l i m i t e d
c h e c k o u t o n t h i s t yp e o f i n v e s t m e n t
M C X AN D N C D E X
Kotak Mahindra Bank a l so a l l o w t o c o s t u m e r t o t r a d e i n
c o m m o d i t y b y M C X ( Mu l t i C o m m o d i t y e x ch a n g e ) a n d
NCDEX (National Commodity daily exchange. In NCDEX
55 commodity are to trade
I n t h e a b o v e p r o d u c t s we h a v e d i s cu s s e d i n v e s t m e n t i n
equity through secondary markets .another wa y of
investing in equity markets is through the primary
37
m a r k e t r o u t e . wh e n e v e r a c o m p a n y c o m e s o u t wi t h a n
i n i t i a l p u b l i c o ff e r i n g yo u m a y ch o o s e t o a p p l y f o r t h e
s h a r e . B a s e d o n n u m b e r o f v a l i d a p p l i c a t i o n r e c e iv e d ,
t h e c o m p a n y wo u l d t h e n a l lo t t h e s h a r e t o a p p l i c a n t s .
T h e o ff l i n e wa y o f i n v e s t i n g i n a n I P O i s b y f i l l i n g
p h ys i c a l a p p l i c a t i o n f o r m s , c h e q u e s . A n d s u b m i t t i n g t h e
f o r m s t h r o u g h yo u r b r o k e r. W it h K O TA K M A H I N D R A
BANK all you have to do is filling number of share on
the site and submit.
D E R I VAT I V E S
C u s t o m e r s wi t h d i ff e r e n t t yp e s o f r i s k p r o f i l e c a n u s e
d e r iv a t i v e s .
• H e d g i n g t h e c a s h m a r k e t p o s i t i o n – id e a l f o r l o w
risk profile.
• Ta k i n g a d v a n t a g e o f a r b i t r a g e o p p o r t u n i t y i n e q u i t y
a n d d e r iv a t iv e s m a r k e t s – i d e a l f o r l o w r i s k p r o f i l e
• Ta k i n g a v i e w o n s t o c k / i n d e x f o r a s l o n g a s 3
month period – medium risk profile
• Speculative trading-high risk profile
38
K O TA K M A H I N D R A B A N K o ff e r s o n l i n e i n v e s t m e n t i n
f u t u r e a n d o p t i o n , wi t h b e n e f i t o f a u t o m a t e d s e t t l e m e n t s
a n d o n l i n e r i s k m o n i t o r in g s ys t e m
Mutual Funds
Key Features
• Portfolio assistance
The Mutual funds on advisory list range form Debt to Equity funds
and are drawn from top performing schemes of renowned Mutual
Fund houses like Franklin Templeton, Kotak, Reliance, Prudential
ICICI etc.Relationship Manager will recommend the funds that suit
the investment objectives.
39
I n s t e a d o f b u yi n g s h a r e s o f d i ff e r e n t c o m p a n i e s t r a c k i n g
the price m o v e m e n t ’s performance of the c o m p a n y,
g r o wt h p r o s p e c t s o f t h e i n d u s t r i e s e t c . a n d t h e n t a k i n g
y o u r o wn b u y/ s e l l d e c i s i o n , yo u m a y c o n s i d e r m a k i n g
i n v e s t m e n t i n e q u i t y/ d e b t m a r k e t t h r o u g h t h e m u t u a l
fund route. Mutual fund is a SEBI registered entity that
pools the money of many individuals’ i n v e st o r s to
p u r c h a s e t h e s t o c k s , b o n d o r o t h e r f in a n c i a l i n s t r u m e n t s
.professional
M a n a g e m e n t a n d d iv e r s i f i c a t i o n a r e t h e t wo p r i m a r y
benefits of mutual fund investing. For beginners, or for
c u s t o m e r wh o a r e u n a b l e t o sp e n d t i m e o n r e s e a r ch i n g
s t o c k s t h e m s e lv e s , m u t u a l f u n d i s a n i d e a l r o u t e f o r a
i n v e s t m e n t i n e q u i t y. I n v e st i n g i n m u t u a l f u n d s o ff l i n e
i n v o l v e s , t r a c k i n g d o wn t h e a g e n t s a p p o i n t e d b y t h e
mutual funds AMCs, filling lengthy forms, wr i t i n g
c h e q u e , r u s h i n g t o t h e o ff i c e o f t h e a g e n t s b e f o r e t h e
c u t o ff t i m i n g t o e n s u r e t h a t t h e d e s ir e d N AV i s a l l o t t e d
40
Bancassurance
They offer a range of carefully selected insurance policies across the
entire spectrum of life insurance products Relationship managers will
analyze your insurance needs and develop the solution that works
best for you.
The ideal insurance plan is one that addresses the exact insurance
needs of the individual that will depend on the age and life stage of
the individual apart from a host of other factors.
41
• Kotak Flexi Plan
C O N V E N I E N C E B AN K I N G
In today's day and age time is money. You work hard and have a
busy schedule. Doing banking should be easy and convenient and
not add to worries.
Kotak Mahindra Bank realize this and have specially tailored a wide
range of value added products and services to make money work for
you. These, coupled with the highest standard of customer care will
make life simpler and easier.
42
Today the technology driven banks are finding various means to
reduce costs and reach out to as many customers as possible spread
over a diverse area. This has led to using multiple channels of
delivery of their products.
43
nothing for the transaction. But also holders of ATM cards cannot
access machines belonging to other Banks.
The number of ATM machines installed by Kotak Mahindra Bank is 20
in Delhi and the All India tally is 156 machines. When this figure is
compared to ICICI Bank which has thrice the number of machines in
Delhi or HDFC Bank which has nearly twice the number of machines
in Delhi, this is worrying for Kotak Mahindra Bank.
“Growth In ATM Machine With Increased Use”
The Table below shows the number of ATM machines belonging to
various banks in India:-
NAME OF BANK NUMBER OF ATM NUMBER OF ATM
MACHINES MACHINES
(ALL INDIA BASIS) (DELHI)
From the above table we can clearly see that HDFC Bank is the Bank
which has highest number of ATM machines on All India basis, this is
followed by ICICI Bank, then UTI.
44
When we look at the concentration of machines in the Delhi Region
we see that out of ICICI Bank’s 560 Machines 112 are located in
Delhi representing 20%.
The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC
Bank is 11.8%, IDBI Bank is 12.3%, and CITIBANK is 13.75%.
Net Banking:
Net banking means carrying out banking transactions via the Internet.
Thus the need for a branch is completely eliminated by technology.
Also this helps in serving the customer better and tailoring products
better suited for the customer.
A customer can view his account details, transaction history, order
drafts, electronically make payments, transfer funds, check his
account position and electronically communicate with the bank
through the Internet for which he may have wanted to visit the bank
branch.
Net banking helps a bank spread its reach to the entire world at a
fraction of the cost
Phone Banking:
45
Mobile Banking
:
Banks can now help a customer conduct certain transactions through
the Mobile Phone with the help of technologies like WAP, SMS, etc.
This helps a bank to combine the Internet and telephone and
leverage it to cut costs and at the same time provide its customer the
convenience. Thus it can be seen that tech savvy banks are tapping
the entire above alternative channels to cut costs improve customer
satisfaction
SMS Banking
46
INTERNET BANKING
INTRODUCTION
The Internet banking is changing the banking industry and is having
the major effects on banking relationships. Internet banking involves
use of Internet for delivery of banking products & services. It falls into
four main categories, from Level 1 - minimum functionality sites that
offer only access to deposit account data - to Level 4 sites - highly
sophisticated offerings enabling integrated sales of additional
products and access to other financial services- such as investment
and insurance.
DRIVERS OF CHANGE
Advantages previously held by large financial institutions have
shrunk considerably. The Internet has leveled the playing field and
afforded open access to customers in the global marketplace.
Internet banking is a cost-effective delivery channel for financial
institutions. Consumers are embracing the many benefits of Internet
banking. Access to one's accounts at anytime and from any location
via the World Wide Web is a convenience unknown a short time ago.
The primary drivers of Internet banking are:
47
· Improve customer access
· Facilitate the offering of more services
· Increase customer loyalty
· Attract new customers
14 13
12
10
8 7
6
4
2 0 0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
48
it costs a fraction to the Bank as compared to other mediums like
Branch Banking or ATM.
But this medium is not as favored a medium as it in the west , the
reasons for this is that firstly , 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.
49
3· Digital certification procedures provide the assurance that the data
you receive is from the Infinity system.
CASH NET
50
It is an Alliance between Citibank, Industrial Development Bank of
India, Kotak Mahindra Bank and UTI Bank. This is the country's first
independent shared ATM network.
IDBI Bank received permission from the Reserve Bank (RBI) to serve
as the network's settlement bank.
Cash net will give access to more than 1,300 ATMs for more than 6
million debit cardholders of the member banks. The Alliance would
constitute about a third of the total card base and 15 percent of the
ATM base in the country.
51
OTHER SERVICES
BANKING HOURS
Kotak Mahindra Bank Account holders have been able to infer that
Branch Banking is the second most Frequent Point of Interaction with
the Bank. The Average Banking Hours is a very important aspect
associated with any Bank. In today’s fast paced life where people
who hold Accounts with the Bank are busy working it is important that
they can find a way to visit the Bank without having to miss out on
work.
52
Apart from the Average Banking Hours Kotak Mahindra Bank offers to
it’s Account holders 24 Hour Branch, 365 Days Branch and the facility
of Sunday Banking.
Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch
in India, this is a big boon for people who cannot take the time out to
visit the Bank during the normal working hours and is also very handy
during emergencies.
The 365 Day Branch of Kotak Mahindra Bank is also unique and the
only other Bank offering this service is ABN Amro , this Branch is
open regardless of the fact that it is a Sunday or a public holiday.
Sunday Banking is very useful for people who are busy throughout
the week and the only day when they find the time is Sunday. Other
Banks offering this service apart from Kotak Mahindra Bank are ABN
Amro and CITIBANK.
53
No Kotak Mahindra Bank account required
Not restricted to a single brand or outlet - accepted at over 3
lakhs merchant establishments in India that accept Visa cards
Can be used at your convenience - no need to spend the entire
value in a single purchase
Attractively packaged and ready-to-gift
Available at all Kotak Mahindra Bank branches
Valid for two years from date of issue of card
Chapter-4
AN ALY S I S AN D F I N D I N G S
Less than 6
Over 2 years months
6 months to 1
17% 3%
year
30%
1 to 2 years
50%
54
The study of 50 Kotak Mahindra Bank respondents consisted of a
majority of customers who had been with the Bank for a reasonable
amount of time. This is good as these customers have had the
opportunity 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 the total respondents only 3% have been with the Bank for
less than 6 months, the rest 97% have had the 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 has been actively acquiring new customers as from
the survey we can see that about 80% of the customers have opened
their accounts during the past two years. The reason for this could be
that during the past two years the Bank has been able to convince
many prospective customers 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.
55
REASON FOR CHOOSING BANK
Recommended by
Family/Friend
Brand Name/Reputation
34% of bank
44%
Advertisement
Branch near
16% 0%6% Office/Residence
Other Reasons
If the Bank could get to know of that very compelling factor that
convinced the customer to open the account then the Bank could use
this in its favor to attract more customers.
From the study conducted the factor which has come out strongest in
this regards is the “Other Reasons” getting 44% of the responses,
going deeper into this response by asking the respondent what is the
factor they include in this Other Reasons is that most people are not
the deciding factor when they open a saving account, this is done so
by their employers. The customer’s salary accounts are created by
the companies in which they work.
56
MOST FREQUENT POINT OF INTERACTION
WITH THE BANK
30 26
25
20 16
15
10 6
5 2
0 0
0
Visit Branch ATM Phone Drop Box Internet Door Step
Banking Banking
The Banks are very interested to know the most popular Point of
Interaction with the Bank as if the Bank is lacking in one of these
steps can be taken to make the situation better.
From the study we can see more than half (more than 50%) of the
total respondents feel that they interact most with the Bank with the
help of ATM. Hence the importance of ATM cannot be overstated.
The Second most popular point of interaction that arises from the
study is the Branch with 32% of the respondents favoring this option.
Kotak Mahindra Bank is unique in an aspect that it follows the “Any
Branch Banking” wherein the Account holder can use any of the
Banks 156 Branches all over the country.
An aspect that customers really appreciate is the 24 hour Branches
and the 365 Days Branches of Kotak Mahindra Bank. The 24 Hour
57
Branch of Kotak Mahindra Bank is located at sector 18 noida apart
from these Branches in Mumbai and other cities in India.
Kotak Mahindra Bank is the only Bank which has the facility of a 24
Hour Branch. As for a 365 Day Branch the only Bank having this
facility apart from Kotak Mahindra is UTIBank.
The third most Frequent Point of Interaction is Phone Banking with
11.5% of the respondents favoring this medium. Phone Banking is
one of the new age Banking techniques. It is in it’s infancy in India
and people have not taken to it as is the case in other Developed
Countries in the World.
In the study it was seen that customers have mixed feeling when it
comes to Phone Banking as sometimes they do not find it as an
effective alternate to traditional forms of Banking.
The forth most Frequent Point of Interaction with the Bank is Internet
Banking with 4% of the respondents favoring this medium. Internet
Banking is the most modern means of Banking available to the
customers but due to the general perception that this medium is not
safe it is not used by many people.
In our study only 60% of the total respondents have at least once
used Internet Banking.
The two options which were not favored by any respondents as the
most Frequent Point of Interaction are Drop Box Facility and Door
Step Banking
58
.
OVERALL SATISFACTION LEVEL
30 26
25
20
14
15
10
10
5
0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
59
Hence about 82% of the Respondents are Satisfied with their
Overall Experience with the Bank.
The study is showing a very good Overall Satisfaction Level by
the Account holders
25 23
20
15
15
10
10
5 2
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
60
From the results of the findings we can see that Kotak Mahindra Bank
has been successful in marinating a high level of customer
satisfaction with the employees. Only 4% of the total respondents
included in the study were dissatisfied.
25 22
20
14
15
10
10
4
5
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied
61
From the analysis of the data that has been collected from Kotak
Mahindra Bank Account holders we can see that majority of the
respondents are satisfied with the Average Banking Hours.
The respondents who are Somewhat Satisfied with the Banking
Hours consist of 44% of the total, while 28% of the total respondents
studied say that they are Very Satisfied. In all 72% of the total
respondents are satisfied with the Banking Hours of Kotak Mahindra
Bank.
The respondents who are neither Satisfied nor Dissatisfied consist of
20% of total number studied, while 8% of the respondents are
somewhat dissatisfied.
BANKS STUDIED
BANKS STUDIED
25
20 20
20
15
10 10 10 10 10
10
5 5 5
5
0
k
nk
nk
BI
ro
B
C
B
SB
an
AN
BO
SB
PN
ID
Ba
Am
Ba
IB
62
IB
H
FC
ra
N
IC
IT
AB
dh
IC
C
D
H
An
This study involved mainly Banks operating in the Private Sector,
there are some Banks from the Public Sector but these are at a
relatively lower proportion.
The Private Bank include both Indian and Foreign Banks, the Indian
Banks included ICICI Bank, HDFC Bank While the Foreign Banks
apart from Kotak Mahindra Bank studied included CITIBANK, HSBC,
ABN Amro.
The Government Banks included most noticeably State Bank of India
(India’s Oldest and largest commercial Bank) , Bank of Baroda , apart
from other Banks.
ATMDécor of Bank
12% 0%
Courteous Staff
26% Efficient service
62%
63
holders , 62% of the respondents felt that the Bank should
concentrate more on this service aspect.
The next aspect which is considered highly important by the Account
holders of various Banks is the Staff of the Bank. It is true that
today’s Banking far less of Branch Banking as it was the case a few
years ago , today Account holders have a constant interaction with
non-human interface like ATM machines , Internet Banking , Drop
Box , Even phone Banking when customers do not interact in a face
to face manner with the Bank employees.
But in the minds of the respondents it is very important that the Staff
the Bank employs should be cooperative, courteous and qualified to
solve the various problems of the Account holders. The percentage of
respondents favoring 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 the
Government sector have been provided with ATM facility by their
respective Banks. To judge the performance level of any Bank today
it is crucial that the ATM service of the Bank be studied, this includes
not only the number of ATM machines installed by the Bank , but also
how technologically advanced the machines are (number of
transaction that can be done with the ATM Facility), the effort Bank
undertakes to maintain the machines and also the overall experience
of the Account holder with the service.
The percentage of respondent considering the ATM service as most
important were 12% of the total sample size.
64
But from the respondents who were questioned none of them said
that the Décor/Ambience of the Bank Branch was most
important. On further Questioning it was revealed that they did want
well-maintained Branches/Other Bank Interaction points but this was
not the most important aspect.
No
21%
Yes
79%
65
The most important findings would come from the group of
respondents who hold Saving Accounts with both Private and
Government run Banks, as these people would be in the best position
to judge the service offered by the Banks.
According to this group of respondents the Range of Products that
are offered by Private sector Banks are much more diverse than
those offered by Government Banks.
Also these respondents felt that the Banks in the Private sector were
much more flexible than their Government counterparts when dealing
with customers were concerned.
66
Overall the result of this question very clearly states that people
consider the service level of Private Banks much higher than
Government Banks as 79% of the respondents agree and only
21% of the respondents disagree.
Chapter-5
CONCLUSION
3. Aims to serve all classes of the society from the salaried middle
class to the high income business class.
Customers are categorized and segmented according to their
requirements and needs.
For Example, the EDGE Saving Account aims to serve middle
class customers so minimum balance required to be maintained is
Rs. 10000. While the PRO and ACE Saving Accounts are targeted
at high income customers, the minimum balance requirement is
Rs. 20000 and Rs. 75000.
67
4. Customers who are more profitable to the Bank (High Value
Customers) are provided special facilities. Priority Banking is
meant to serve these high value customers.
68
8. The Debit Cards provided by the Bank are Internationally Accepted
around the world, hence giving the customers the convenience to
transact anytime, anywhere.
9. The Bank has tied up with other Banks so that it’s customers can
use other Bank’s ATM facility for free transactions
10.The Bank also provides DEMAT account and also sells Mutual
Funds, this provides the Bank and Government additional
revenue.
11.The Bank has been very successful in enlarging its customer base
during the last couple of years.
13.The Biggest competitors of the Bank are ICICI Bank and HDFC
Bank and STANDRAD CHARTERED.
14. ATM Facility is most popular way to transact with the Bank.
69
• Increasing the number of ATM machines.
GENERAL FINDINGS
70
QUESTIONNAIRE
NAME ___________________________________________
ADDRESS ________________________________________
AGE
Below 25 years 25 to 40 40 to 55 Above 55 years
OCCUPATION
Business Professional Service Student Others
ANNUAL INCOME
Less than 1.5 Lakh 1.5 Lakh to 3 Lakh 3 Lakh to 4.5 Lakh
above 5 Lakh
Yes No
71
3. Out of the above accounts which do you use most
frequently _________________________
Land/Property
Jewellery
Yes No
6. How many times a week does you use your ATM/Debit Card?
72
More than 4 time a week
Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking
Yes No
9. Do you agree with the view that your money would be safer in a
nationalized bank rather than a foreign bank?
Strongly Agree
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
10. Are you influenced by advertisements in your choice of bank?
Yes No
73
11. Do additional schemes/benefits (free insurance, free debit card,
privileges/discounts on use of debit card, etc.) offered by banks
have a bearing on your decision when you open a saving bank
account?
Yes No
74
BIBLIOGRAPHY
75
SYNOPSIS
76
Earlier profitability gained only secondary importance, since
banks lived in the comfort of a controlled 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 to reach them.
The first change along this line was brought in by the foreign
banks with their emphasis on high quality and efficient service
combined with technological advantages like satellite banking
and tele-banking manned by skeletal staff and lesser number of
branches.
77
banking sector. Also, since customers are becoming more
sophisticated and educated, their expectation from the
neighborhood bank is increasing.
To sum, the new private sector banks are poised to redefine
banking sector in India. Though they don’t pose a threat to the
existing private banks they will certainly force them to gear up
their strategies to remain in the field.
Over the last few years, the communication style too has
changed with respect to the banking industry. Communication
has shifted from branding the bank to branding banking
products, highlighting service commitments, convenience, etc.
Further, branding of banking products such as home loans,
consumer durable loans, tele banking, ATMs, net banking
etc
78
have started taking place, especially after the entry of foreign
banks and private sector banks which had the advantage of the
latest technology.
-
79