A PROJECT REPORT ON A COMPARITIVE ANALYSIS OF DIFFERENT PRODUCT AND MARKETING STRATEGIES OF KOTAK MAHINDRA BANK W.R.

T OTHER BANKS

PREFACE

The industrial scenario of economy is highly competitive and constantly changing. To serve this highly competitive scenario practical studies are much more important with theoretical studies. In India the significance of MBA course is increasing drastically. Amongst all the PG courses MBA is most favored. As a partial fulfillment of third semester the students have to take a summer training of 6 to 7 weeks at any company and prepare a project report on the basis of that practical experience. Indian economy is growing at a considerable rate. The growth of GDP in India is 8% per annum. The major sector contributing to the growth of GDP is service sector and it is approximately 63% to GDP. Banking is one of the main pillars of service sector. So I have decided to take exposure of banking sector by taking practical training at KOTAK MAHINDRA BANK which is one of the reputed private banks. The aim of KOTAK MAHINDRA BANK is customization & people cantered banking. Customized banking system can be achieved by provided what customer actually wants. So we want to check weather KOTAK MAHINDRA BANK is successful or not. As a part of this study I have decided to prepare a project report on A COMPARITIVE ANALYSIS OF

DIFFERENT PRODUCT AND MARKETING STRATEGIES OF KOTAK MAHINDRA BANK W.R.T OTHER BANKS. The study of this topic is helpful to me in analyzing customer satisfaction & loyalty to the services which they are using at the KOTAK MAHINDRA BANK. This study will also be helpful to us in analyzing the information about what change customer want from the existing services. This report also gives me the overall satisfaction level of customer from the KOTAK MAHINDRA BANK & how the customers are loyal to the bank. This report also includes graphical representation wherever it feels necessary. Finally, it is indeed excellent opportunity for us to present this report and a matter of esteem honors itself. After successful completion of training it is golden experience for me of banking sector. And I also know how the different departments are working.

ACKNOWLEDGEMENT
First of all I am thankful to KOTAK MAHINDRA BANK and Branch Manager Mr. Pranaya Thapliyal for giving me permission to take the summer training and my project guide Mr. Dhirendra Singh for his support in this project. I would also like to thank the staff members of the bank for providing us information about the different departments of the bank. I would like to Finally I am glad to thank our all faculties who have provided me substantial guidance & support in preparation of this project. This successful completion of this project could not have been possible without their co-operation and support.

EXECUTIVE SUMMARY

The project is based on the sales strategies for the B a n k i n g p r o d u c ts wi t h a s p e c i a l r e f e r e n c e t o K O T A K M A HI N DR A B AN K a n d t h e c o n s u me r p e r c e p t i on a b o u t t h e s a me . F i r s t a n d F o r e mo s t , t h e p u r p o s e o f Ko t a k M a h i n d r a B a n k i s t o f u l f i l l t h e n e e d s f o r i nv e s t me n t u n d e r o n e roof. T h i s p r o je c t s h o ws , t h e c o mm o n ma n h a s s t a r t e d c a p i t a l ma r k e t t e r m l i k e b u l l a n d b e a r e x p l o d e n e w t i me . I t g i v e s t h e d e t a i l v i e w o f t h e r e g u l a t o r y f r a me wo r k f o r t h e Ko t a k M a h i n d r a B a n k T h e f o c u s 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 OTA K M A HI N DR A B AN K t o c a t e r t o t h e n e e d s s u c h a s r e t u r n e x p l a n a t i on , f i n a n c i a l p o s i t i o n , r i s k t o l e r a n c e , etc. T h e n e x t p h a s e l o o k u p t h e i nv e s t me n t i n g r o wt h oriented stock which are available at attractive

r e l a t i v e v a l u a t i on .

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 s e 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 i v e s t h a t a r e g i v e n d u e c o n s i d e r a t i o n t hr o u g h o u t t h e r e s e a r c h . I t a l s o 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 me a n s t h e s t u d y h a s g a i n e d mo me 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 i r t u e o f q u e s t i o n n a i r e s a n d w e b si t e s , r e s p e c t i v e l y. Th e scope of the study is s u g g e s te d in favor of the

c o mp a n i e s s t r i v i n g t o e me 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 mp a n i e s c a n f i n e t u n e t h e i r p r o s p e c t i v e o n e s a n d c a n g r a b t he o p p o r t u n i t i e s o f t h e t r a n s f o r mi n g t he we a k n e s s o f o t h e r i n t o t h e i r o wn strength.

RESEARCH OBJECTIVES
Various Objectives for conducting the research and analysis are listed as under:

Access the Market Potential of Kotak Mahindra Bank Saving Account with the help of a survey conducted on a total of 50 Respondents .

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

Study the impact of a customer centric approach being followed by the Bank, and what is its benefit. Compare the services offered by Kotak Mahindra Bank and the customers satisfaction level of the same with that of other Banks in the Private sector, and to access where the Bank has to improve.

Consideration of various promotional and marketing and advertising strategies of Kotak Mahindra to the satisfaction among its ultimate users and consumers

Finally to draw the various conclusion and recommendations on the basis of the study conducted on specifically taking to consideration the services, advertising and marketing strategies of the Bank.

SCOPE OF THE STUDY

This study helps in finding out the satisfaction of most important resource that is human resource in Kotak Mahindra Bank. This also helps in finding the effect ness of human resource policies in organization. The study provides knowledge of various products& investment services of Kotak Mahindra Bank The study helps to learn of work culture of organization. The study of also helps to learn what as the various benefits available to the advisor in an organization. The study also helps the company to be aware of important that its has to make in its incentives plan.

LIMITATIONS
The study could not be made that comprehensive due to time constraints. Some customers feel uncomfortable to reveal some personal information relating to income etc. it might have happened that some more essential information could have been collected.

Time constraint. Biases and non-cooperation of the respondents. Financial constraint. Geographical selectivity in study limiting to Delhi city only.

INDUSTRY PROFILE

BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Banks

Private sector Banks

Foreign Banks in India

Regional Rural Bank

(28) Nationalized Bank Other Public Sector Banks (IDBI) SBI and its

(27) Old Private Banks New Private Banks

(29)

(102)

Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks (55)

Scheduled State Cooperative Banks (31)

Here we more concerned about private sector banks and competition

among them. Today, there are 27 private sector banks in the banking

sector: 19 old private sector banks and 8 new private sector banks.

These new banks have brought in state-of-the-art technology and

Aggressively marketed their products. The Public sector banks are

Facing a stiff competition from the new private sector banks.

The banks which have been setup in the 1990s under the guidelines

of the Narasimham Committee are referred to as NEW PRIVATE

SECTOR BANKS.

New Private Sector Banks

Superior Financial Services

Designed Innovative Products

Tapped new markets

Accessed Low cost NRI funds Greater efficiency

INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth.

The countrys middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking. Players are becoming increasingly customer - centric in their approach, which has resulted in innovative methods of offering new banking products and services. Banks are now realizing the importance of being a big player and are beginning to focus their attention on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II regulation. Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital, says Prathima Rajan, analyst in Celent's banking group and author of

the report.

The banking industry should focus on having a small

number of large players that can compete globally rather than having a large number of fragmented players."

INRODUCTION

Current bank account is opened by businessmen who have a number of regular transactions with the bank, both deposits and withdrawals. It is also known as d Current account can be opened in co-operative bank and commercial bank. Incurrent account, amount can be deposited and withdrawn at any time without giving any notice. It is also suitable for making payments to creditors by using cheques. Cheques received from customers can be deposited in this account for collection. In India, current account can be opened by depositing Rs.500 (US $ 11) to Rs.1,000 (US $ 22). The customers are allowed to withdraw the amount with cheques and they generally do not get any interest. In India Co-operative bankmay allow interest upto 1%. Current account holder get one important advantage of overdraft facility.

Features of Current Bank Account

The main objective of current bank account is to enable the businessmen to conduct their business transactions smoothly. There is no restriction on the number and amount of deposits. There is also no restriction on the withdrawals. Generally bank does not pay any interest on current account. Nowadays, some banks do pay interest on current accounts. Current account is of continuing nature and as such there is no fixed period.

Think Investment Think Kotak

Banks like Kotak Mahindra, standard chartered, ICICI, HDFC, and Citibank now bring your Bank Account and Debit card to your fingertips. With Mobile commerce, you can perform a wide range of query-based transactions from your Mobile Phone, without even making a call.

Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that encompass every 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. The group has a net worth of over Rs.1, 800 crore and employs over 4,400 employees in its various businesses. With a presence in 82 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000.

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).

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A.

Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra

Finance Limited. Since then it's been a steady and confident journey to growth and success.

1986 1987 1990 1991 1992 1995

: Kotak Mahindra Finance Limited starts the activity of Bill

Discounting : Kotak Mahindra Finance Limited enters the Lease and Hire

Purchase market : The Auto Finance division is started : The Investment Banking Division is started. Takes over

FICOM, one of Indias largest financial retail marketing networks : Enters the Funds Syndication sector : 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 Groups entry into information distribution.

 1998 2000

: Enters the mutual fund market with the launch of Kotak

Mahindra Asset Management Company. : Kotak Mahindra ties up with Old Mutual plc. for the Life business.

Insurance

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

CHAPTER-2 COMPANYS PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of Indias most reputed financial organizations. 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 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 ATMS in India and 800000ATMS worldwide accepted in more than 56000 establishments across India and 10 million worldwide. The customer also has access to over 800 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 Ltd which was established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. Kotak Mahindra Capital Company Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services. Kotak Securities Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and coordinators. Kotak Securities Ltd. offers online and offline services based on well-researched expertise and financial products to non-institutional investors.

Kotak Mahindra Prime Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile 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.

BOARD OF DIRECTORS

Mr. K.M.Gherda Executive Chairman

Mr. Uday Kotak Executive Vice Chairman and Managing Director Mr. Anand Mahindra Co Promoter of Kotak Mahindra Bank and Vice Chairman and Managing Director of Mahindra and Mahindra Mr. Cyril Shroff Co Promoter Mr. Pradeep N Kotak Agri Division of Kotak and Company Limited Dr. Shanker Acharya Mr. Shivaji Dam Managing Director Kotak Mahindra Old Mutual Life Insurance Limited Mr. C.Jayaram Executive Director Mr. Dipak Gupta Executive Director

CHAPTER-3

Product Detail K o t a k M a h i n d r a B a n k i s o n e o f t he p r o mi n e n t s u b s i d i a r i e s o f K o t a k M a h i n d r a g r o u p . Th e a c t i v i t i e s o f t h e c o mp a n y b e i n g p a r a l l e l t o i t s ob je c t i v e a r e v e r y w i d e a n d c o v e r a l l t h e c o mp o n e n t s o f a B a n k . Th e B a s i c a r e a o f Op e r a t i o n s i s t h e B a n k i n g b u s i n e ss , o t h e r p r o d u c t s a r e me a n t f o r t h e r e g u l a r r e v e n u e g e n e r a t i o n . B e i n g a B a nk i n g h o u s e , t h e c o mp a n y i s in regular touch wi t h B a n ki n g Accounts, I n v e s t me n t

S e r v i c e s , Co n v e n i e n c e B a n ki n g a n d O t h e r S e r v i c e s .

They offer complete solutions that address all your financial requirements, whether you're an individual or a firm. From everyday banking to long term investments their offering covers it all. This wide range of products is delivered to you with a genuine understanding of your specific need and warm, personalised service.

Kotak Mahindra Bank, it's not about selling you many different products it's about working out a holistic, pragmatic solution that addresses your financial needs. Through their varied products,they commit themselves to becoming banker to the customer rather than being asset financier to our customers.

B a n ki n g Ac c o u n t s

There are three types of banking account: Savings Account Current Account Term Deposit

SAVINGS ACCOUNT Choose from our range of Savings Accounts

KOTAK MAHINDRA has got a variety of options of savings accounts to choose from for its customers according to their convenience and requirements .These savings accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS

ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs75000(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.

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 customized to suit individual banking needs. Its constant endeavour is to enable regular financial transactions through online platform so that most of

payments can be made directly through your account or card.

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 extra charge! Multiple Access Channels Access An account through phone, mobile phone or internet to get information about account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking. Financial payments facilitated through the savings account Use the free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.

Quick and easy funds transfer Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time. Free investment account One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting your Bank Account. Besides this you get a consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports. Attractive returns Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.

 PRO SAVINGS ACCOUNT:

Kotak Mahindra Banks Pro Savings Account is an account packed with powerful features to provide a superior banking experience at a very comfortable balance requirement. They provide a relationship manager who will specifically take care of banking and investment needs. 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 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. 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 Net Banking. Free investment account

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. 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. Quick and easy funds transfer Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time 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. Dedicated relationship manager

You get a one point contact for all your banking related queries and transactions. Your relationship manager will also help you with financial planning and sound investment decisions. Free banking transactions You can issue demand drafts or send cheques for collection on branch locations without any charge to your account.

ACE SAVINGS ACOUNT:

Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a world of financial benefits and privileged banking transactions. The account carries benefits ranging from personal investment advisory services to concierge services to free banking transactions. Onewill find that this package of services and privileges is unmatched by any other savings account in the market. Features & Benefits

Free access at all domestic and international VISA ATMs No longer have to worry about locating your Bank or Partner Bank ATM Use the first VISA ATM that you spot, for free cash withdrawal or balance enquiry transactions. So walk into any VISA ATM in India or abroad to withdraw cash or for balance enquiry.

Multiple access channels Access the account anytime through land line, mobile phone or internet to get information on account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking. Financial payments facilitated through the savings account 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!

Quick and easy funds transfer Transfer funds easily and with speed, to a beneficiary account at another bank. One can avail of this facility by walking into any of branches or by simple logging on to Net Banking. Also get a free multi-city cheque book so that money from your account is transferred to the beneficiary's account at any of 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 automatically sweeps out idle funds, above a threshold, from your

account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in the account, thereby providing maximum liquidity.

CURRENT ACCOUNT Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether small/ mid size business or an enterprise spread across multiple locations in the country, would find a Current Account that's just designed for you. These Current accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 50000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. With features ranging from Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free Demat Account, and more!

Thus the three account opening options in savings account are as mentioned above: Edge Current Account In need of a well equipped bank account to keep pace in all the business endeavors. They offer the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and the entire gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Edge Current Account is the ideal way to make money work harder. Features & Benefits Multi City Banking Current account/s with Kotak Mahindra Bank will be recognized in every other branch. One can just walk into a Kotak Mahindra Bank branch in any of our branches across country to 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, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin advantages of attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank Branch location in India.

At-par Cheques Get free At-par Cheques that are treated as 'local clearing' cheques across all branch locations. All these at nominal costs.

Cheque Collection All Outstation cheques, drawn on any of branch locations, are collected 'at nominal charge' for you. The strong network of correspondent banks enables us to collect cheques from 1600 locations across India at faster speed and minimal cost

Mobile Banking and Alerts Our Mobile Banking & Alerts service enables to access bank account on Mobile Phone. One can access all your standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated to you via SMS

 Pro Current account

You need a well equipped bank account to keep pace with you in the ever changing business scenario. We offer you the Kotak Pro Current Account, armed with Kotak 2-Way Sweep, as well as an entire gamut of Banking Privileges and 'user-friendly' Convenience Banking facilities. The feature rich Kotak Pro Current Account is the ideal way to make your money work harder.

Key Features

Dedicated Relationship Manager Free Demand Drafts & Pay Orders> Free At Home Services Better Forex rates and Efficient Trade Services

ACE Current Account

In the need of a well equipped bank account to keep pace with you in the ever changing business scenario. They offer you the Kotak Ace Current Account, armed with Business benefits and exclusive Ace Privileges and an entire gamut of banking conveniences especially designed for you. The feature rich Kotak Ace Account is the ideal way to make money work harder

Term Deposits

Key Features

Ease and convenience of operation Liquidity through overdraft or sweep-in facility No penalty on pre-mature encashment Nomination facility available

Give your portfolio stability of returns and safety and liquidity. Invest in Kotak Bank Term Deposit. It offer attractive returns on term deposits and investing in them is really simple and convenient. 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 can avail upto 85% overdraft against term by paying 2% above deposit rate. This facility is available 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 deposit will automatically be encashed 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 prevailing on 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 different persons for different term deposit accounts can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit.

INVETSMENT SERVICES

Making your money grow

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

DEMAT

Key Features

Efficient depository services that allow you to

hold your shares in convenient, "demat" formats

Leverage opportunities in the stock-market

when you spot them

It offers streamlined, efficient depository services that allow to hold shares in the convenient "demat" formats and leverage opportunities in the stockmarket 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 t h e r e l a t i v e t e r ms :

S E B I ( S t o c k Ex c h a n g e b o a r d o f I n d i a ) I t c h e c k o u t o n N S E a n d B S E a n d a l l t yp e o f s h a r e t r a d i n g ( B o t h p r i ma r y a n d s e c o n d a r y ma r k e t )

N S E &B S E : - Kotak Mahindra Bank a l l o ws t o c o s t u me r t o t r a d e i n s h a r e wi t h NS E a n d B S E b o t h ( i n p r i ma r y a n d s e c o n d a r y ma r k e t b o t h ) . I n B S E c o s t u me r c a n t r a d e i n 2 4 5 2 s t o c k s a n d i n N S E c o s t u me r c a n t r a d e i n 9 33 c o mp a n i e s . The i n d e x o f N S E i s Ni f t y a n d f o r B S E S e n s e x

N S DL AN D CS DL Kotak Mahindra Bank a l l o w t o c o s t u me r t o i n v e s t i n mu t u a l f u n d a n d b o n d s . N S DL ( Na t i o n a l s e c u r i t y d e p o s i t o r y l i mi t e d ) a n d C S D L ( C e n t r a l s e c u r i t y d e p o s i t o r y l i mi 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 me n t

M C X AN D NC DE X

Kotak Mahindra Bank a l s o a l l o w t o c o s t u me r t o t r a d e i n c o m mo d i t y by MCX (Multi C o mmo d i t y exchange) and

N C D E X ( N a t i o na l C o m mo d i t y d a i l y e x c h a n g e . I n N C D EX 5 5 c o m mo d i t y a r e t o t r a d e

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 demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.

I NI T I AL P UB L I C O F F E R S ( I PO S )

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 c u s s e d i n ve s t me n t i n e q u i t y t h r o u g h s e c o n d a r y ma r k e t s .a n o t h e r w a y o f i n v e s t i n g i n e q u i t y ma r k e t s i s t h r o u g h t h e p r i ma r y ma r k e t r o u t e . wh e n e v e r a c omp a n y c o me s ou t wi t h a n i n i t i a l p u b l i c o f f e r i n g yo u ma y c h o o s e t o a p p l y f o r t h e s h a r e . B a s e d o n n u mb e r o f v a l i d a p p l i c a t i o n r e c e i v e d , t h e c o mp a n y wo u l d then allot the share to applicants.

T h e o f f 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 ms , c h e q u e s . A n d s u b mi t t i n g t h e f o r ms

t h r o u g h yo u r b r o k e r . Wi t h K O TA K M AH I N D R A B A N K a l l yo u h a v e t o d o i s f i l l i n g n u mb e r o f s h a r e o n t h e s i t e a n d s u b mi t . D E RI VA T I V E S

C u s t o me r s wi t h d i f f 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 derivatives. H e d g i n g t h e c a s h ma r k e t p o s i t i on i d e a l f o r l o w r i s k profile. Taking advantage of arbitrage opportunity in equity a n d d e r i v a t i v e s ma r k e t s i d e a l f or l o w r i s k p r o f i l e T a k i n g a v i e w o n s t o c k / i n d e x f or a s l o n g a s 3 mo n t h p e r i o d me d i u m r i s k p r o f i l e Speculative trading-high risk profile

K O T A K M A HI ND R A B A N K o f f e r s o n l i n e i n v e s t me n t i n f u t u r e a n d o p t i on , wi t h b e n e f i t o f a u t o ma t e d s e t t l e me n t s a n d o n l i n e r i s k mo n i t o r i n g s ys t e m

Mutual Funds Key Features

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

Portfolio assistance

h team analyses and researches the Mutual Funds available in the market, helping you make more informed decisions. The recommendations take into account all relevant factors including the investment philosophy of the Asset Management Company, portfolio quality, risk-adjusted returns and market trends. The Mutual funds on advisory list range form Debt to Equity funds and are drawn from top performing schemes of renowned Mutual Fund houses like Franklin Templeton, Kotak, Reliance, Prudential ICICI etc.Relationship Manager will recommend the funds that suit the investment objectives. I n s t e a d o f b u yi ng s h a r e s o f d i f f e r e n t c o mp a n i e s t r a c k i n g t h e p r i c e mo v e me n t s p e r f o r ma n c e o f t h e c o mp 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 yo u r o wn b u y/ s e l l d e c i s i o n , yo u ma y c o n s i d e r ma k i n g i n v e s t me n t i n e q u i t y/ d e b t ma r k e t t h r o u g h t h e mu t u a l f u n d r o u t e . M u t u a l f u n d i s a S EB I r e g i s t e r e d e n t i t y t h a t p o o l s t h e mo n e y o f ma n y i n d i v i d u a l s i n v e s t o r s t o 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 i n a n c i a l i n s t r u me n t s .p r o f e s s i o n a l

M a n a g e me n t a n d d i v e r s i f i c a t i o n a r e t h e t wo p r i ma r y b e n e f i t s o f mu t u a l f u n d i n v e s t i n g . F o r b e g i n n e r s , o r f o r c u s t o me r who are unable to spend t i me on researching stocks

t h e ms e l v e s , mu 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 me n t i n e q u i t y. I n v e s t i n g i n mu t u a l f u n d s o f f 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 ts a p p o i n t e d b y t h e mu t u a l f u n d s A M C s , f i l l i n g l e n g t h y f o r ms , 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 f f 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 f f t i mi n g t o e n s u r e t h a t t h e d e s i r e d N AV i s a l l o t t e d

C O N VE NI E NC E B A NK I N G

Anywhere, Anytime Banking

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

Multiple Banking Channels

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

 ATM (Automatic Teller Machine):

An ATM is basically a machine that can deliver cash to the customers on demand after authentication. However, nowadays we have ATMs that are used to vend different FMCG products 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 cash withdrawal 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 are many dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also hold the keys to future operational efficiency Account holders of Kotak Mahindra Bank Saving Account having Visa Electron Debit Card can access other Banks ATM machines unlimited times per month for free, after that the Account holder has to pay 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 NAME OF BANK NUMBER OF ATM NUMBER OF ATM MACHINES (ALL INDIA BASIS) MACHINES (DELHI)

KOTAK MAHINDRA 250 Bank ICICI Bank HDFC Bank IDBI CITIBANK HSBC AMN Amro UTI GTB banks in India:560 625 350 160 103 40 507 250

60

112 66 43 22 21 13 20

From the above table we can clearly see that HDFC Bank is the Bank which has highest number of ATM machines on All India basis, this is followed by ICICI Bank, then UTI. When we look at the concentration of machines in the Delhi Region we see that out of ICICI Banks 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:

This means carrying out of banking transaction through the telephone. A customer can call up the banks help line or phone banking number to conduct transactions like transfer of funds, making payments, checking of account balance, ordering cheques, etc. This also eliminates 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 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

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

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

DRIVERS OF CHANGE Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a costeffective 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: Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers

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 todays fast paced life where people who hold Accounts with the Bank are busy working it is important that they can find a way to visit the Bank without having to miss out on work.

The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm, the Bank is open to the public for ten hours. These timings are convenient for especially those Account holders who are working, these people can visit the Bank after their Office finishes. Apart from the Average Banking Hours Kotak Mahindra Bank offers to its 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. Best Compliments Card the perfect gift Introducing Best Compliments Card - the prepaid card from Kotak Mahindra Bank. It lets your loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards, be it a shopping mall, a restaurant or a multiplex. So go ahead and give someone the perfect gift! 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

COM PETIVE PROFILE

HDFC BANK The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the

Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

As of

March 31, 2008,

the Banks distribution network was at

761

Branches and 1977 ATMs in 327 cities as against 684 branches and 1,605 ATMs in 320 cities as of March 31, 2007. Against the regulatory

approvals for new branches in hand, the Bank expects to further expand the branch network by around 150 branches by June 30, 2008. During the year, the Bank stepped up retail customer acquisition with deposit

accounts increasing from 6.2 million to 8.7 million and total cards issued (debit and credit cards) increasing from 7 million to 9.2 million.Whilst credit growth in the banking system slowed down to about 22% for the year ended 2007-08, the Banks net advances grew by 35.1% with retail

advances growing by 38.6% and wholesale advances growing by 30%, implying a higher market share in both segments.

The transactional banking business also registered healthy growth With cash management volumes increased by around 80% and trade services volumes by around 40% over the previous year. Portfolio quality as of March 31, 2008 remained healthy with gross nonperforming assets at 1.3% and net non-performing assets at 0.4% of total customer assets. The Banks provisioning policies for specific loan loss provisions remained higher than regulatory requirements.

HDFC BANK PRODUCT AND CUSTOMER SEGMENTS

PERSONAL BANKING

Loan Product

Deposit Product

Investment & Insurance

Auto Loan Loan Security Loan Property Personal loan Credit card 2-wheeler loan Commercial vehicles finance Home loans Retailbusiness banking Tractor loan Working Finance Construction Equipment Finance Health Finance Education Loan Care Capital Against Against

Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit Lockers

Mutual Fund Bonds Knowledge Centre Insurance General Health Insurance Equity Derivatives Mudra Bar Gold and and

 Gold Loan

Cards

Payment Services

Access To Bank

Credit Card Debit Card Prepaid Card

NetSafe Merchant Prepaid Refill Billpay Visa Billpay InstaPay

NetBanking OneView InstaAlert MobileBanking ATM Phone Banking Email Statements Branch of Network

-------------------------------Forex Services ------------------------------- Product & Services Trade Services Forex service Branch Locater RBI Guidelines

DirectPay VisaMoney Transfer eMonies Online Electronic

Funds Transfer Payment

Direct Tax

WHOLESALE BANKING

Corporate

Small and Medium Enterprises

Financial Institutions and Trusts

Funded Services Non Funded

Funded Services Non Services

BANKS Sub

Funded Clearing Membership

Services

Specialized Services RTGS added submembership Fund Transfer

Value Added Value Services services

 Internet Banking

Internet Banking

ATM Tie-ups Corporate Salary a/c Tax Collection Financial Institutions

Mutual Funds

Stock Brokers

Insurance Companies

Commodities Business

Trusts

HDFC BANK Market Strategy Emphasizes The Following: Increase market share in Indias expanding banking and financial

services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs. Maintain current high standardsfor asset quality through disciplined credit risk management. Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector. Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.

Products and Services HDFC Bank

Product range: The following is the product range offered at HDFC: While various deposit products offered by the bank are assigned different names, the deposit products can be categorized broadly into the following types. Definition of major deposit schemes are as under: -

1. Demand deposits:

"Demand Deposits" means a deposit received by the bank which is withdrawn able on demand; a) Savings Account: "Savings Deposits" means a form of Demand Deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the bank during any specified period; HDFC provides with saving bank account with the usual facilities, and one also gets a free ATM card, intrbranch banking, bill payment facilities, phone banking and mobile banking.

2. Term Deposits: "Term Deposit" means a deposit received by the bank for a fixed period withdraw able only after the expiry of the fixed period and includes deposits such as Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits / Monthly Income Certificate / Quarterly Income Certificate.

3. Notice Deposit: ''Notice Deposit'' means Term Deposit for a specific period but which can be withdrawn on giving at least one complete banking day's notice.

4. Current Account:

"Current Account" means a form of Demand Deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will

also include other deposit accounts which are neither Savings Deposit nor Term Deposit; The account holder gets a personalized cheque book, monthly account statements, and Inter-branch banking.

5. Corporate Account:-

These are more commonly known as Salary Accounts. These are account in HDFC bank with zero balance. These are given to salaried people. These accounts are opened by the employer for the employees to deposit the salary of the employee directly to the account.

6. HDFC Bank Preferred:A preferential Savings Account where in, one is assigned with a dedicated Relationship Manager, whos youre the one point contact. One also get privileges like fee waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and lower interest rates on loans

7. Sweep-In Account:A Fixed Deposit linked to ones Savings Account. So, even if ones Savings Account runs a bit short, one can issue a cheque (or use ATM Card). The money is automatically swept in to ones Savings Account from ones Fixed Deposit Account. The excess funds in the account are directly transferred to the fixed deposit account of the account holder.

8. Super Saver Account: It gives one an overdraft facility up to 75% of ones fixed deposit. In an emergency, you can access your funds while your fixed deposit continues to earn high interest.

9. HDFC Bank Plus:

Apart from Regular and Premium Current Accounts HDFC also has HDFC Bank Plus, a Current Account and then something extra for the HDFC bank customers. One can transfer up to Rs. 50 lakh every month at no extra charges, between the four metros. One can also avail cheque clearing between the four metros, get cash delivery/pick-up up to Rs. 25000/-, home delivery of demand drafts, at-par cheque, outstation cheque clearing facility, etc.

10. Demat Account: One can conduct hassle-free transactions on the stock market for ones shares. The shares held by the customer are protected from damage, loss and theft, by maintaining these shares in electronic form. This account can be accessed through Internet too.

11. Loans:

There are a variety of loan schemes offered like personal loans, new car loans, used car loans, loan against shares, consumer loans, two wheeler loans, and home loans. These are available with easy payback in monthly instalments. Loans are sanctioned with easy

documentation and quick delivery.

Home Loan - Home loans for individuals to purchase (fresh / resale) or construct houses. Application can be made individually or jointly. HDFC finances up to 85% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges) based on the repayment capacity of the customer

Home improvement loan HIL facilitates internal and external repairs and other structural improvements like painting, waterproofing, plumbing and electric works, tiling and flooring, grills and aluminum windows. HDFC finances up to 85% of the cost of renovation (100% for existing customers) subject to market value of the property.

Purpose External repairs Tiling and flooring Internal and external painting Plumbing and electrical work Waterproofing and roofing Grills and aluminum windows Waterproofing on terrace

 Construction of underground/overhead water tank Paving of compound wall (with stone/tile/etc.) Home extention loan

HEL facilitates the extension of an existing dwelling unit. All the terms are the same as applicable to Home Loan.

Purpose

HDFC Home Extension Loan makes it convenient for you to extend or add space to your home. Be it an additional room, a larger bathroom, or even enclosing an open balcony.

Maximum loan 85% of the cost of extension Maximum Term

20 years subject to your retirement age

Applicant and Co- Applicant to the loan

Home Loans can be applied for either individually or jointly. Proposed owners of the property, will have to be co-applicants. However, the co-applicants need not be co- owners.

Adjustable Rate Home Loan

Loan under Adjustable Rate is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate on your loan will be revised every three months from the date of first disbursement, if there is a change in RPLR, the interest rate on your loan may change. However, the EMI on the home loan disbursed will not change*. If the interest rate increases, the interest component in an EMI will increase and the

principal component will reduce resulting in an extension of term of the loan, and viceversa.

ICICI BANK

ICICI Bank is the largest private sector bank & the second largest bank in the country in terms of assets. It is a pan-India player with around 950 branches (including recently acquired Sangli bank). The bank has boosted its overseas operations in the last three years and now has presence in 18 countries either through subsidiaries or representative offices .Together with its subsidiaries , ICICI Bank offers a complete spectrum of financial

services & products ranging from commercial banking to investment banking , mutual fund to insurance. ICICI has a very compelling growth story ahead of it as Indian economy continues to boom. The GDP growth in India has been an average 8% for the last 3 years. Although I think that the market has some more downside left to it, if I were to build a new position in ICICI, I would start buying here on dips maybe in one-thirds or one-fourths. Investment Rationale :

ICICI Bank will remain a one of the most fancied stocks among the investors who believe in Indias long-term growth story.

 Retail banking though slowed down will remain focus area for ICICI Bank Massive scale up in international banking Innovate approach to tap potential in Rural & SME sector Robust non-interest income compensating for slower growth in Net Interest Income Sangli Bank acquisition will help the bank to improve CASA deposits .

MARKETING STRATEGY OF ICICI BANK : Indias second largest bank 614 branches and extension counters 2200 ATMS Biggest private sector bank in India Most valuable bank in India in terms of market capitalization Described by the competitors and industry expert in one word Aggressive

First In The Industry Introduced concept of branding in the Indian banking industry Process, People and Physical evidence brought to life by ICICI Product Innovation Put the customer first in the true sense Cash on the celebrity fever Introduced the concept of brand ambassadors

 Introduction of DSAs and DSTs Unleashed the power of the internet introduced the concept of net banking and e-mail marketing First bank to focus on retail banking as a driver for growth Comprehensive data centre availability & data protection solutions In effect changed and shaped the Indian Banking Industry

Focus Areas Of Marketing Efforts Target marketing and customer acquisition Share of wallet Channel strategy and management Relationship management and database marketing Product development & innovation Credit approval

Basis For Segmentation Occupation = Different products for different occupational segment identified Income = Minimum balance serves as a income segment barrier Geographical = Concentrated on Tier 1 & Tier 2 Cities trying to extend reach Age

= Different products like student account. Targeting: Differentiated marketing strategy: Tailors its marketing campaigns to meet the needs of its target prospects Creates differentiated product offering for different segment Use of technology in tracking customer segment.

Positioning: Core proposition Hum hain na trust, credibility, total financial solution provider (brought about through its cross selling effort) Modernization process and physical evidence technology as the backbone and accelerator ICICI bank is absolute appalling. Their slogan of Hum hain na is very apt, only that it applies to their customers (i.e. us poor mortals). Hum hain na &&& to bank with ICICI. ICICI bank the most amazing bank with a punch line as Hum Hain Na, i think they mean Hum hain - -na (not available) (Earlier I was with ICICI) I must say they rock; very good bank with great customer support.

DISTRIBUTION STRATEGY & CHANNEL STRATEGY OF ICICI BANK

DISTRIBUTION STRATEGY: Cross selling of products as a major area of focus Creation of concept of DSA (Direct Selling Agent) Creation of concept of DST (Direct Selling Team) Effort on the part of the bank to reach the customer rather than waiting for the customer Use of internet, mobile, ATMs and other technological device to reach and serve the customers

CHANNEL STRATEGY:

Red- 35% Branch Blue- 47% ATM Green 6% Call centers

Violet- 5% Internet Yellow- 7% COPS

PROMOTION STRATEGY, ADVERISING, PUBLIC RELATIONS, OUT-DDOR ACTIVITIES, OTHER INITIATIVES OF ICICI BANK.

1) PROMOTION STRATEGY: Corporate branding Product branding

Brand: result of customer interactions As Brand exists in the customers mind, Brand is entirely the product of customer experiences. Every kind of interaction with the customer that they can relate to our brand name leaves behind some perception that contributes to, or detracts from Brand. Hence, every interface between our company and the customer is a medium for building Brand. Product Promotion: Aimed at generating sales Communicates product features and benefits Mainly through print media Point of purchase promotion tools for different products to reach the relevant customer segment.

2) PUBLIC- RELATIONS : Purpose - To deliver communication that is uniform in its message and yet customised for specific target audiences Media relations Press conferences Press Releases 1-1 interviews Investor relations Analyst relations Government relations

3) OUT-DOOR ACTIVITIES : Need to be seeneverywhere!! Events at corporate campus Promotional material at channel partner outlets Billboards Signages Kiosks in residential and commercial complexes

4) OTHER INITIATIVES :

In-film promotions Baghban Co-Branding Initiatives Alliance with Amway India for launch of the international credit card. The card will enable Amway distributors to purchase Amway products and earn and redeem reward points Indian Railways Catering And Tourism Development Corporation, in conjunction with ICICI Bank, announced the launch of mobile payments and ticketing system, offering IRCTC customers to book railway tickets via SMS and make payments through their ICICI Bank account.

 Cross brand associations - acquiring databases of high net worth clientele of lifestyle products : Tie-up with Woven Hues Young Stars Account Promotion through tie-up with Cartoon Network, and in-series promotion through Tom & Jerry

Seminars in partnership with media channels

Products and Services HDFC Bank

ICICI Bank offers wide variety of Deposit Products to suit customer requirements. Coupled with convenience of networked branches/ over 1800 ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at the doorstep.

SAVINGS ACCOUNT

ICICI Bank offers customers a power packed Savings Account with a host of convenient features and banking channels to transact through. So now customers can bank at their convenience, without the stress of waiting in queues. ICICI Bank provides its customers with various types of savings accounts keeping in mind different needs of different people. Normal Savings Account Special Savings Account Senior Citizen Accounts Young Stars Accounts Women Accounts

Normal Savings Account:

The Normal savings Account that ICICI offers has the following salient features

1. Anywhere Banking: Opening an account with ICICI is not exclusive to the branch the customer has walked into, customer enjoy the power of banking at any of the branches throughout India. Customers have the power to withdraw cash up to Rs. 50,000 and make cash deposits up to Rs. 50,000 as well.

2. Internet Banking: This is a value added service that the customers are offered free of cost it allows them to check their account balance, pay utility bills, make fund transfers between self accounts as well as third party at the click of the mouse.

3. Ncash debit cum ATM card: It is an international 2-in-1 card that enables customers not only to withdraw cash from ICICI but also from a non ICICI VISA ATMs further it allows customers to shop at various merchant outlets accredited to VISA across the globe.

4. Minimum Balance: Customers need not maintain a daily minimum balance in their account. On a given day balance in the account may drop to zero, this allows customers all their funds at their disposal. Customers need to maintain an average balance of Rs.5,000 per quarter. Non-maintenance of the minimum average quarterly balance attracts a fee of Rs.750 per quarter.

Special Savings Account:

The Special Savings Account has been designed keeping in mind the specific needs of organizations such as Trusts, Associations, Societies, Councils, Clubs etc. It provides organizations solutions with added value and is ideal for tax exempted entities.

The Special Savings Account has the following salient features

1. Multi-City Cheque Book: This facility allows its customers to skip the traditional way of transferring funds to other cities through a demand draft. The Special Savings Account holder are issued two separate chequebooks for local and outstation use, thereby not only saving on time but also saving on draft commission. The cheques are payable at par at designated ICICI Bank branches across the country. There will be no limit to the value of cheque issued on a single day at RBI clearing centers. For all other centers a cap of Rs.10, 00,000 on a single day apply. All chequrebooks are personalized.

2. Quantum Optima Facility: Quantum Optima facility combines the liquidity of a saving account and high returns of Fixed Deposit. All balances in the saving account above Rs.25,000 are transferred to a fixed deposit in multiples of Rs.5,000 for a time period of one year. The funds however continue to be accessible around the clock through ATM, and also through cheques. Whenever the saving account balance falls below the specified limit, sufficient amount is transferred back from the fixed deposit by breaking in units of Rs.1,000 on last in first out basis, the terms of the fixed deposit can be specified. This facility is available to those employees who do not use the overdraft facility. However one the overdraft is regularized this facility can be resumed.

3. Others:

- Internet Banking . -Free Anywhere banking . -Free collection of outstation cheques. -Free monthly account statements. -Payroll processing for employees of the organization through ICICI Bank Salary Accounts. -Inward remittance through Money2India for approved trusts.

Senior Citizen Account: The Senior Citizen Account has a few services that the Normal Savings Account does not offer. The salient feature of the Senior Citizen Account are

Higher Interest Rates. Demand Loan / overdraft against deposits will be upto 90% of the deposit.

The upcountry cheque collection facility for locations with ICICI Bank presence free of charge to the Senior Citizen customers.

The ICICI Bank Ncash debit card is a debit-cum-ATM card providing you with the convenience of acceptance at merchant establishments and cash withdrawals at ATMs.

Auto Invest Account Internet Banking is offered free of cost. Anywhere Banking - This facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches.

You can give us various types of standing instructions like transferring to fixed deposit accounts at regular intervals.

An average quarterly balance of Rs 5,000 only. Non-maintenance of the minimum average quarterly balance attracts a fee of Rs 750 per quarter.

Nomination facility is available. Interest is payable half-yearly.

Young Stars Account: Young Stars is a banking service for children, aged 1day -18 years, brought to you by ICICI Bank to help the parents meet the present and future aspirations that they hold for their child. It offers various savings and investment options to the parent along with teaching the child to manage his/her personal finance in a more responsible and independent manner. Young Stars will guide your child through the world of banking -through checking the account balance, fun zones and special pages on the internet. It

makes banking a pleasure and of course teaches your child to manage their personal finances.With the pocket money that you transfer to your child's account, you can even shop with him / her at Young Stars very own shopping page. You can even open a recurring deposit in your child's name.

Once you are done with your 'banking', you can access your child's account with all the fun links to special zones designed to suit your child's area of interests and also impart knowledge on the current events of the world.

Salient features: 1. Option of a Savings Bank account, Fixed Deposit account or

Recurring Deposit account. 2. 3. Minimum balance at Rs. 500/- per quarter for Savings Bank. A special Recurring Deposit account with additional features as

below: i The parent would put forward the desired amount to be earned

at the end of the tenure ii Based on the prevailing rate of interest, the bank staff would then

back calculate the installments to be deposited now till maturity. 4. Free personalized chequebook

5.

Free Domestic Debit Card* for the child above the age of 10 years

with features as below: a b c 6. Daily withdrawals limits of Rs. 1,000/-

Daily spend limits of Rs. 1,000/Special privileges across select alliance partners outlets. Facility to invest in GOI Relief Bonds and Mutual Funds, as GOI

Relief Bonds have been discontinued. 7. Free Internet banking. a b Separate user ids and passwords for both parents and children Access to special zones and links to related websites for making

internet banking a memorable experience. 8. Facility to transfer funds from parent account to kid account to enable

parents to inculcate savings habit amongst children. 9. Facility of transferring funds from the Young Stars accounts to the

RD to enable the parents to let their child earn more. 10. Alliances with various partners to meet the child's needs in varied

interest areas such as clothing, computers, books, music, toys etc. * Available for children above the age of 10 years only.

Womens Account: The features of the account have been specially designed keeping in mind a woman's financial requirements. These include

A) Recurring Deposits B) Financial planning of children C) Family Shield Insurance In addition to these, all features of the existing bank account are available with this account as well such as Free international debit card Internet Banking Phone Banking ATM's

Recurring deposit A small amount of money saved every month can grow to a large

amount over a period of time No Tax deducted at source Can be used for your future expenses like your child's education, marriage, festivals, or just to buy that gold necklace you always wanted, by keeping aside a small fixed amount every month Family shield insurance Ensures the security of your family through a personal accident insurance policy For an yearly premium amount of Rs.60/-, your child/family can be insured for an amount of Rs. 2 lac (in case of surface accidents) or Rs.4 lac (in case of air accidents).

Financial Planning for Children A "Young star" account - special account for kids to promote the savings habit in them can be opened for just for a minimum balance of Rs.500 per quarter. The account has the following features Free differentiated debit card for them

Free differentiated cheque book Free internet banking Facility to transfer funds from parent account to kid account to enable parents inculcate savings habit in children

Current Accounts:
Every business requires efficient banking facilities to support its business activities. ICICI Bank offers premium quality service, unfolding a wide array of class products. With technology leadership and service the bank is able to meet some of the most challenging financial needs of clients. A Current Account is one that is required by Businessman, Joint stock companies, Institutions, Public authorities, public corporations etc. Any business that has numerous banking tranactions need a current account as it Allows running account supporting unlimited withdrawals and deposits. Is meant for convenience and not to save money.

Benefits of current account

Unlimited Withdrawal and Deposit Unlimited Cheque book

Demand Drafts and Payorders Funds Transfer ( Local or Anywhere) Collection of Cheques/ Drafts Statements,Advices, Daily statement by e -mail Cash withdrawal and Deposits Call center Internet Banking

Added features of Current Account

Multicity Cheque payment facility at over 155 centers Anywhere Banking facility Doorstep Banking - Pick up and delivery of Currency / Cheque

Mobile Banking

Made 2 order Current Account: Made2order current account, unlike the normal current account which is based on the quarterly balance, allows the customer to have customized current account based on the business requirement. The made2order current account is totally flexible and can be adapted to changing business requirement, without having the requirement to Current Accounts have specific requirement of Quarterly Average

Balance (QAB) maintenance and inturn o ffer various facilities free of cost to the customer based on the QAB. A personalized schedule of charges is derived for each customer based on: Service Required QAB as agreed to be maintained in the account Float expected in the account The made2order customers based on the services required maintain the required QAB or pay scaleable volume driven fees for the services utilised. Some of the other facilities offered under made2order current account are as mentioned below Multi City Cheque Facility Anywhere Banking Facility Upcountry Cheque Collection Pay Orders and Demand Drafts Corporate Care Service Doorstep Banking Facility Internet Banking Facility

 Debit/ ATM Card Mobile Banking More Useful Facilities You can be in touch with your Solution Manager for structuring your current account.

Escrow Account:

An Escrow Account refers to assets or revenue streams held in safe custody as safety against a contingent situation of non fulfillment of a contract. In simpler words we may say that an escrow a/c is a third party arrangement to ensure performance of certain obligations between certain parties and operated in terms of an underlying agreement. The account will be a current a/c without cheque drawing facility or a Fixed Deposit account, as defined in the terms of the agreement. Escrow a/c's are typically used for lending arrangemen ts, project financing, Securitisations, M&A's, Buy -back of shares, takeovers, custody, litigations, purchase & sale of land, Source code (used in software) custody, etc. The following reasons enumerate why Escrow accounts are opened:

Provides greater security & comfort Trapping of identified cash flows Regulatory requirements Custody of cash / documents Ease of monitoring

The funds in the Escrow a/c are held for the benefit of the Beneficiary of the a/c rather than person / company in whose name the a/c is opened. For e.g.. in a borrower lender arrangement, the a/c name is "Borrower - Escrow a/c" and the funds deposited are that of the borrower but the funds are held in the escrow a/c for the benefit of the Lender . Roaming Current Account Only Roaming Current Account from ICICI Bank travels the distance with customers business. With advanced technological features such as MCC and LCC, banking needs are well taken care of, customers can access their accounts at over 500 networked branches across the country. So while customers take care of their business, ICICI Banks Roaming Current Account simplifies banking for them. Product Features :

Choose your account Multi City Cheque Facility Anywhere Banking acility Upcountry Cheque Collection Pay Orders and Demand Drafts

Phone Banking Facility* Doorstep Banking Facility Internet Banking Facility Debit/ ATM Card Mobile Banking

Real Time Gross Settlement (RTGS) system:

RTGS is a payment system in which both processing and final settlement of funds transfer instructions take place continuously in real time.

It is a gross settlement system where transfers are settled individually, that is, without netting debits against credits.

As it is a real-time settlement system, the system effects final settlement continuously rather than periodically at pr e-specified times provided that a sending bank has sufficient covering balances or credit. RTGS system can be characterized as a funds transfer system that is able to provide continuous intra -day finality for individual transfers. In this system payment i nstructions between banks are processed and settled individually and continuously throughout the day. This is in contrast to net settlements where payment instructions are processed throughout the day but inter -

bank settlement takes place only afterwards t ypically at the end of the day. In RTGS system, payee banks and their customers receive funds with certainty, or so-called finality, during the day, enabling them to use the funds immediately without exposing themselves to risk.

STRATEGIC ALLIANCES ENTERED BY KOTAK MAHINDRA BANK

NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking Technology (IDRBT), a group established by the Reserve Bank of India (RBI) in 1996, has planned to set up a national switch to hook up all of the country's 10,000-odd ATMs. The idea of establishing ATM interconnectivity through a national switch has been approved by the information chiefs of various Banks. The expected cost of transactions routed through the switch is to be under 10 rupees (21 cents U.S.) each, due to the high volumes of transactions -almost 100,000 per day.

CASH NET

It is an Alliance between Citibank, Industrial Development Bank of India, Kotak Mahindra Bank and UTI Bank. This is the country's first independent shared ATM network. IDBI Bank received permission from the Reserve Bank (RBI) to serve as the network's settlement bank. Cash net will give access to more than 1,300 ATMs for more than 6 million debit cardholders of the member banks. The Alliance would constitute about a third of the total card base and 15 percent of the ATM base in the country.

Kotak Mahindra Bank and REDIFF.com

REDIFF.com India and Kotak Mahindra Bank have entered into an alliance to provide online and offline banking and related services to the Indian consumer. The alliance will enable information on the entire range of the banks consumer banking products to be made available to the 6.4 million online customers of Rediff.com. The services offered include detailed information on various deposits, loans and mortgages, credit cards, mutual funds and insurance products of the bank. Users will be able to directly interact with the bank and request for products online

Survey Conducted on 50 Respondants

 DURATION WITH BANK

DURATION WITH BANK

Over 2 years 17%

Less than 6 months 3% 6 months to 1 year 30%

1 to 2 years 50%

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.

REASON FOR CHOOSING BANK

REASON FOR CHOOSING BANK

Recommended by Family/Friend Brand Name/Reputation of bank

44%

34%
Advertisement

6% 16% 0%

Branch near 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 customers salary accounts are created by the companies in which they work.

MOST FREQUENT POINT OF INTERACTION WITH THE BANK

MOST FREQUENT POINT OF INTERACTION

30 25 20 15 10 5 16

26

6 0 2 Internet Banking 0 Door Step

0 Visit Branch ATM Phone Banking Drop Box

The Banks are very interested to know the most popular Point of Interaction with the Bank as if the Bank is lacking in one of these steps can be taken to make the situation better. From the study we can see more than half (more than 50%) of the total respondents feel that they interact most with the Bank with the help of ATM. Hence the importance of ATM cannot be overstated. The Second most popular point of interaction that arises from the study is the Branch with 32% of the respondents favoring this option. Kotak Mahindra Bank is unique in an aspect that it follows the Any Branch Banking wherein the Account holder can use any of the Banks 156 Branches all over the country.

An aspect that customers really appreciate is the 24 hour Branches and the 365 Days Branches of Kotak Mahindra Bank. The 24 Hour Branch of Kotak Mahindra Bank is located at sector 18 noida apart from these Branches in Mumbai and other cities in India. Kotak Mahindra Bank is the only Bank which has the facility of a 24 Hour Branch. As for a 365 Day Branch the only Bank having this facility apart from Kotak Mahindra is UTIBank. The third most Frequent Point of Interaction is Phone Banking with 11.5% of the respondents favoring this medium. Phone Banking is one of the new age Banking techniques. It is in its infancy in India and people have not taken to it as is the case in other Developed Countries in the World. In the study it was seen that customers have mixed feeling when it comes to Phone Banking as sometimes they do not find it as an effective alternate to traditional forms of Banking.

The forth most Frequent Point of Interaction with the Bank is Internet Banking with 4% of the respondents favoring this medium. Internet Banking is the most modern means of Banking available to the customers but due to the general perception that this medium is not safe it is not used by many people. In our study only 60% of the total respondents have at least once used Internet Banking.

The two options which were not favored by any respondents as the most Frequent Point of Interaction are Drop Box Facility and Door Step Banking . OVERALL SATISFACTION LEVEL

OVERALL SATISFACTION LEVEL

30 25 20 15 10 5 0 Very Satisfied 14

26

10

0 Somewhat Satisfied Neither Satisfied nor Dissatisfied Somewhat Dissatisfied

0 Very Dissatisfied

Any service provider would want their customers to have a high Overall Satisfaction level. Kotak Mahindra Bank has scored very well in this regard.

The most important thing is that no respondent has complained that they are overall dissatisfied with the bank. This is a very important finding because this shows the effort Kotak Bank puts in providing their customers a superior service has not gone waste. More than half of the total respondents (52%) say that they are somewhat satisfied with the overall service of the Bank. About 30% of the total respondents say that they are Very Satisfied with their Overall Experience with the Bank.

Hence about 82% of the Respondents are Satisfied with their Overall Experience with the Bank. The study is showing a very good Overall Satisfaction Level by the Account holders

SATISFACTION LEVEL WITH BANK STAFF

SATISFACTION LEVEL WITH BANK STAFF (Courtesy,Qualified)

25 20 15 10 5 0 Very Satisfied 15

23

10 2 Somewhat Satisfied Neither Satisfied nor Dissatisfied Somewhat Dissatisfied

0 Very Dissatisfied

Banks are institutions which are backed up by a large amount of capital; todays Banks are spending a huge amount of money on technology, improvement in infrastructure, etc. But even today the most lasting impact about any Bank comes from the customers experience with the Bank Staff. Any paining experience can have a lasting impact on the mind of the customer, this can force him to change Banks or even discourage others from joining the Bank. Hence Banks should train their employees 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 in marinating a high level of customer satisfaction with the

employees. Only 4% of the total respondents included in the study were dissatisfied.

The number of respondents who were Very Satisfied represented 30% of the total respondents while those who were Somewhat Satisfied were 46% 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 to 7 pm)

(10 am

25 20 15 10 5 0 Very Satisfied 14

22

10 4 0 Somewhat Satisfied Neither Satisfied nor Dissatisfied Somewhat Dissatisfied Very Dissatisfied

From the analysis of the data that has been collected from Kotak Mahindra Bank Account holders we can see that majority of the respondents are satisfied with the Average Banking Hours.

The respondents who are Somewhat Satisfied with the Banking Hours consist of 44% of the total, while 28% of the total respondents studied say that they are Very Satisfied. In all 72% of the total respondents are satisfied with the Banking Hours of Kotak Mahindra Bank. The respondents who are neither Satisfied nor Dissatisfied consist of 20% of total number studied, while 8% of the respondents are somewhat dissatisfied.

MOST IMPORTANT QUALITY IN A BANK

MOST IMPORTANTANT QUALITY IN A BANK

Dcor of Bank ATM 0% 12% Courteous Staff 26% Efficient service 62%

From the survey of more than hundred respondents belonging to different Banks we can to the conclusion that Efficient Service offered by Banks is considered most important by account 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 todays 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.

But from the respondents who were questioned none of them said that the Dcor/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.

PRIVATE BANKS PROVIDE SUPERIOR SERVICES COMPARED TO GOVERNMENT BANKS?

PRIVATE BANKS PROVIDE SUPERIOR SERVICES AS COMPARED TO GOVERNMENT BANKS ?

No 21%

Yes 79%

The general perception is that the service quality of Private Banks is superior to that offered by Government sector Banks; we wanted to study whether this is a true phenomenon or whether this was just hearsay. The most important findings would come from the group of respondents who hold Saving Accounts with both Private and Government run Banks, as these people would be in the best position to judge the service offered by the Banks.

According to this group of respondents the Range of Products that are offered by Private sector Banks are much more diverse than those offered by Government Banks. Also these respondents felt that the Banks in the Private sector were much more flexible than their Government counterparts when dealing with customers were concerned. Private sector Banks are much more proactive when it comes to offering its customers new-age methods of Banking like ATM Facility , Internet Banking , Phone Banking, These services make the life of Account holders much easier.

Another major difference that comes to most of the respondents minds when comparing the Private and Government sector Banks is the Staff Attitude towards the customers. Sure Private sector Bank Account holders have had problems dealing with Bank Staff, but they still feel it is much better than how Government employees behave. These Government employees show as if they are doing a favoring on the customer when they do their job. Private sector Bank customers are offered many freebies and incentives to remain with the Bank, or try new products of the Bank. This is never the case with Government Banks.

Overall the result of this question very clearly states that people consider the service level of Private Banks much higher than Government Banks as 79% of the respondents agree and only 21% of the respondents disagree.

Chapter-5 CONCLUSION

1. Kotak Mahindra Bank is Leading Bank in the country, it

provides a

variety of products and services to different segments of customers.

2. The Bank aims to serve customers from teenagers to senior citizens, hence different products designed to suit specific requirements of the above.

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.

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.

5. The Bank prides itself with the ability to provide differentiate products in the crowed market of saving accounts. Bank offers the free home baking,

special co-branded debit cards (Smart fill Debit Card) which makes its product unique.

6.

The Bank is also involved in marketing activities which serves as a medium of advertisement for the Bank. These are as follows:

Extended happy hours at certain pubs in Delhi for the Banks account 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.

7.

8.

The Debit Cards provided by the Bank are Internationally Accepted around the world, hence giving the customers the convenience to transact anytime, anywhere. The Bank has tied up with other Banks so that its customers can use other Banks ATM facility for free transactions

9.

10. The Bank also provides DEMAT account and also sells Mutual Funds, this provides the Bank and Government additional revenue.

11. The Bank has been very successful in enlarging its customer base during the last couple of years.

12. The Number One Reason of people choosing Kotak Mahindra Bank is the Brand Name/Reputation of the Bank. Hence it should be careful that the Brand name and Goodwill the Bank has earned is not diluted.

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

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

15. Overall the customers appreciate the service and products offered by the Bank and are willing to recommend the Bank to their acquaintances , But more attention has to paid towards:

Increasing the number of ATM machines.

Improving Internet Banking Facility.

GENERAL FINDINGS

1.

ATM Facility is more widely used by customers belonging to Private/Foreign Banks as compared to Government Banks.

2.

Customers value Efficient Service over every other aspect, this is far more important than the number of ATM machines, Staff, Dcor of Bank.

3.

Reputation of Bank is most important when it comes to choosing especially a Private Bank.

4.

The general perception is that Private Banks provides better services as compared to a Government Bank.

5.

People realize that Private Banks are as safe as compared to Government Banks.

6.

Advertisements and Freebies can be used to attract more customers.

QUESTIONNAIRE

NAME ___________________________________________

ADDRESS ________________________________________

AGE Below 25 years OCCUPATION Business Professional Service Student Others 25 to 40 40 to 55 Above 55 years

ANNUAL INCOME Less than 1.5 Lakh above 5 Lakh 1.5 Lakh to 3 Lakh 3 Lakh to 4.5 Lakh

1. Do you hold a saving account?

Yes

No

2. If yes in which banks.

3. Out of the above accounts which do you use most frequently _________________________

4. Apart from saving in a bank account where do you invest your money?

Land/Property

Capital markets (shares, mutual funds, etc)

Jewellery

Others (please specify)

5. Do you get an ATM/debit card facility from your bank?

Yes

No

6. How many times a week does you use your ATM/Debit Card?

Less than 2 time a week 2 to 4 times a week More than 4 time a week

7. What is your most frequent point of interaction with the bank?

Visit Branch ATM Phone Banking Drop Box Internet Banking

8.Do you believe that Private/Foreign banks provide superior services than nationalized banks?

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

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

BIBLIOGRAPHY

There was immense need and flow of the information while conducting the analysis as well as while writing the thesis report, which was gathered through various sources mentioned below: Various Magazines and Newspapers such as Outlook Financial Times The Economic Times The Times of India The Hindustan Times Other References Questionnaires, Journals, Broachers and various other documents gathered and collected from bank and various other sources such as ATM centers and associates. Internet www. Kotak Mahindra Bank. com www. Kotak Mahindra Bank.co.in www.google.com www.economictimes.com

SYNOPSIS

The central bank of India is the Reserve Bank: most large commercial banks were nationalized in 1969, with more being nationalized in 1980. The Department of Banking at the Ministry of Finance controls all banking. The State Bank of India, the largest commercial bank, handles some of the Reserve Banks roles. Cooperatives and credit societies are an important supplement to the private banking industry, especially in rural areas. The Entry of Foreign Banks in the Early 1990s has brought about a Revolution in the Banking industry. The superior service levels of these Banks have forced even the Nationalized Banks to wake up to the reality that if they do not live up to the customers expectation they will soon cease to exist.

Indian Banking Industry today is in the midst of an IT revolution. A combination of regulatory and competitive reasons has led to increasing importance of total banking automation in the Indian Banking Industry.

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.

There is certainly a paradigm shift in banking in India in the recent past. At present profitability, capital restructuring and transparency is considered important and significant for banks. Also, banks in India have started realizing the need to be customer focused that in turn leads to customer appreciation, which is imperative for survival and growth. 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.

Further, development of special manpower, innovative products, technology exploitation and personalized services play a crucial role on the banking industry today, since the customer has more options in choosing bank. Thus leading to consumerism in the 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 dont pose a threat to the existing private banks they will certainly force them to gear up their strategies to remain in the field.

The last few years have seen a sea change in banking strategies, with more focus on quality. The adoption of a specialized customer-oriented focus is fast getting wider acceptability. In a market that keeps growing in depth and diversity, niche banking is new mantra adopted by all. Thus, instead of targeting an entire market segment, banks have adopted a specific business focus to reach their target audience.

Over the last few years, the communication style too has changed with respect to the banking industry. Communication has shifted from branding the bank to branding banking products, highlighting service commitments, convenience, etc. Further, branding of banking products such as home loans, consumer durable loans, tele banking, ATMs, net banking etc have started taking place, especially after the entry of foreign banks and private sector banks which had the advantage of the latest technology. -