70878495 kotak-mahindra-bank

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 i s based on the sales s t ra tegies for the

Banking products wi th a specia l reference to KOTAK

MAHINDRA BANK and the consumer percept ion about

the same.

• Firs t and Foremost , the purpose of Kotak Mahindra

Bank is to fu l f i l l the needs for inves tment under one

roof .

• This project shows, the common man has s tar ted

capi ta l market te rm l ike bu l l and bear explode new

t ime.

• I t gives the de ta i l view of the regula tory framework

for the Kotak Mahindra Bank

• The focus sh if t to var ious products of KOTAK

MAHINDRA BANK to cater to the needs such as

re tu rn explanat ion , f inancia l posi t ion , r i sk to lerance ,

e tc .

• The next phase look up the inves tment in growth

or iented s tock which are avai lable a t a t t rac t ive

re la t ive valua t ion .

Fur ther to this , projec t proceeds wi th the research

des igned in the l ight of the core objec t ives of the s tudy

a long wi th the sub objec t ives that a re given due

considera t ion throughout the research. I t a lso enl is ts a l l

the da ta sources as to by which means the s tudy has

gained momentum. The data has been col lec ted by

vir tue of ques t ionnai res and webs i tes , respect ive ly . The

scope of the s tudy is sugges ted in favor of the

companies s t r iving to emerge as super powers drawn

ou t by the survey. These companies can f ine tune the ir

prospect ive ones and can grab the oppor tuni t ies of the

t ransforming the weakness of other in to the ir own

s t rength.

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 customer’s

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 it’s 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) (27) (29) (102)• Nationalized

Bank

• Other Public

Sector Banks

(IDBI)

• SBI and its

Associates

• Old Private

Banks

• New Private

Banks

(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 country’s 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 : Kotak Mahindra Finance Limited starts the activity of Bill

Discounting

• 1987 : Kotak Mahindra Finance Limited enters the Lease and Hire

Purchase market

• 1990 : The Auto Finance division is started

• 1991 : The Investment Banking Division is started. Takes over

FICOM, one of India’s largest financial retail marketing networks

• 1992 : Enters the Funds Syndication sector

• 1995 : Brokerage and Distribution businesses incorporated into a

separate company - Kotak Securities. Investment Banking division

incorporated into a separate company - Kotak Mahindra Capital

Company

• 1996 : The Auto Finance Business is hived off into a separate

company - Kotak Mahindra Primus Limited. Kotak Mahindra takes a

significant stake in Ford Credit Kotak Mahindra Limited, for

financing Ford vehicles. The launch of Matrix Information Services

Limited marks the Group’s entry into information distribution.

• 1998 : Enters the mutual fund market with the launch of Kotak

Mahindra Asset Management Company.

• 2000 : Kotak Mahindra ties up with Old Mutual plc. for the Life

Insurance business.

Kotak Securities launches kotakstreet.com - its on-line broking site.

Formal commencement of private equity activity through setting up of

Kotak Mahindra Venture Capital Fund.

• 2003 : Kotak Mahindra Finance Ltd. Converts to bank

CHAPTER-2

COMPANY’S PROFILE

Established in 1984, The Kotak Mahindra Group has long been one of

India’s most reputed financial organizations. In Feb 2003, Kotak Mahindra

Finance Ltd., the group’s flagship company was given the license to carry on

banking business by the Reserve Bank of India (RBI).This approval creates

banking history since Kotak Mahindra Finance Ltd is the first company in

India to convert to a bank. The license authorizing the bank to carry on

banking business has been obtained from the RBI in tune with Section 22 of

the Banking Regulation Act 1949.

KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and

Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management

Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement

of Business on 11th Feb 1986.

The bank customers have access to entire VISA network of 4500 ATM’S in

India and 800000ATM’S worldwide accepted in more than 56000

establishments across India and 10 million worldwide. The customer also

has access to over 800 ATM’s with sharing arrangements with UTI BANK,

of these 125 are in the NCR.

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

Kotak Mahindra Bank is one of the prominent subs id iar ies of

Kotak Mahindra group. The ac t ivi t ies of the company being

paral le l to i t s object ive are very wide and cover a l l the

components of a Bank. The Basic area of Opera t ions is the

Banking bus iness , o ther products are meant for the regu lar

revenue genera t ion . Being a Banking house, the company is

in regu lar touch wi th Banking Accounts , Investment

Services , Convenience Banking and Other Services .

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.

Banking Accounts

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 Bank´s 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 Bank´s 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 stock-

market when you spot them Being a brokerage house, the company is in

regular touch with the share market and its relative indexes like NSE &BSE,

NCDEX. NSDL, CSDL. Let ’s unders tand the re la t ive terms :

SEBI (S tock Exchange board of India)

I t check ou t on NSE and BSE and al l type of share t rading

(Both pr imary and secondary market )

NSE &BSE : - Kotak Mahindra Bank a l lows to cos tumer to t rade

in share wi th NSE and BSE both ( in pr imary and secondary

market both) . In BSE costumer can t rade in 2452 s tocks and

in NSE costumer can t rade in 933 companies . The index of

NSE is Nif ty and for BSE Sensex

NSDL AND CSDL

Kotak Mahindra Bank a l low to cos tumer to inves t in mutual fund

and bonds . NSDL (Nat ional secur i ty depos i tory l imi ted) and

CSDL (Cent ra l secur i ty depos i tory l imi ted check ou t on th is

type of inves tment

MCX AND NCDEX

Kotak Mahindra Bank a lso al low to costumer to t rade in

commodi ty by MCX (Mult i Commodi ty exchange) and

NCDEX (Nat ional Commodi ty dai ly exchange. In NCDEX 55

commodi ty are to t rade

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.

INITIAL PUBLIC OFFERS(IPO’S)

In the above products we have discussed inves tment in

equi ty through secondary markets .another way of inves t ing

in equi ty markets is through the pr imary market rou te

.whenever a company comes ou t wi th an in i t ia l publ ic

offer ing you may choose to apply for the share . Based on

number of val id appl ica t ion rece ived, the company would

then a l lot the share to appl icants .

The off l ine way of invest ing in an IPO is by f i l l ing phys ica l

appl ica t ion forms , cheques . And submit t ing the forms

through your broker . With KOTAK MAHINDRA BANK al l

you have to do is f i l l ing number of share on the s i te and

submit .

DERIVATIVES

Customers wi th d if ferent types of r i sk prof i le can use

der iva t ives .

• Hedging the cash market posi t ion – ideal for low r i sk

prof i le .

• Taking advantage of arb i t rage oppor tuni ty in equ i ty and

der iva t ives markets – ideal for low r i sk prof i le

• Taking a view on s tock/ index for as long as 3 month

per iod – medium r isk prof i le

• Specu la t ive t rading-high r i sk prof i le

KOTAK MAHINDRA BANK offers onl ine inves tment in

fu tu re and opt ion , wi th benef i t of automated se t t lements and

onl ine r i sk moni tor ing sys tem

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.

Ins tead of buying shares of d i f ferent companies t racking the

pr ice movement’s performance of the company, growth

prospects of the indus tr ies e tc . and then taking your own

buy/se l l dec is ion , you may consider making inves tment in

equi ty /debt market through the mutual fund route . Mutual

fund is a SEBI regis tered ent i ty that pools the money of

many individuals ’ inves tors to purchase the s tocks , bond or

o ther f inancia l ins t ruments .profess ional

Management and d ivers i f ica t ion are the two pr imary benef i t s

of mutual fund inves t ing. For beginners , or for cus tomer who

are unable to spend t ime on researching s tocks themselves ,

mutual fund is an ideal route for a inves tment in equ i ty .

Inves t ing in mutual funds off l ine involves , t racking down

the agents appointed by the mutual funds AMCs, f i l l ing

lengthy forms , wr i t ing cheque, rushing to the off ice of the

agents before the cut off t iming to ensure that the des i red

NAV is a l lot ted

CONVENIENCE BANKING

“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 bank’s 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

banks in India:-

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.

NAME OF BANK NUMBER OF ATM

MACHINES

(ALL INDIA BASIS)

NUMBER OF ATM

MACHINES

(DELHI)

KOTAK MAHINDRA

Bank

250 60

ICICI Bank 560 112HDFC Bank 625 66IDBI 350 43CITIBANK 160 22HSBC 103 21AMN Amro 40 13UTI 507 -GTB 250 20

When we look at the concentration of machines in the Delhi Region we see

that out of ICICI Bank’s 560 Machines 112 are located in Delhi representing

20%.

The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC Bank

is 11.8%, IDBI Bank is 12.3%, and CITIBANK is 13.75%.

Net Banking:

Net banking means carrying out banking transactions via the Internet. Thus

the need for a branch is completely eliminated by technology. Also this

helps in serving the customer better and tailoring products better suited for

the customer.

A customer can view his account details, transaction history, order drafts,

electronically make payments, transfer funds, check his account position and

electronically communicate with the bank through the Internet for which he

may have wanted to visit the bank branch.

Net banking helps a bank spread its reach to the entire world at a fraction of

the cost

Phone Banking:

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 bank’s 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 cost-

effective delivery channel for financial institutions. Consumers are

embracing the many benefits of Internet banking. Access to one's accounts at

anytime and from any location via the World Wide Web is a convenience

unknown a short time ago.

The primary drivers of Internet banking are:

· 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 today’s fast paced life where people who hold Accounts with the

Bank are busy working it is important that they can find a way to visit the

Bank without having to miss out on work.

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 it’s

Account holders 24 Hour Branch, 365 Days Branch and the facility of

Sunday Banking.

Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in

India, this is a big boon for people who cannot take the time out to visit the

Bank during the normal working hours and is also very handy during

emergencies.

the 365 Day Branch of Kotak Mahindra Bank is also unique and the only

other Bank offering this service is ABN Amro , this Branch is open

regardless of the fact that it is a Sunday or a public holiday.

Sunday Banking is very useful for people who are busy throughout the week

and the only day when they find the time is Sunday. Other Banks offering

this service apart from Kotak Mahindra Bank are ABN Amro and

CITIBANK.

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

COMPETIVE 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 Bank’s 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 Bank’s 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

Bank’s 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 Against

Security

• Loan Against

Property

• Personal loan

• Credit card

• 2-wheeler loan

• Commercial

vehicles finance

• Home loans

• Retailbusiness

banking

• Tractor loan

• Working Capital

• Saving a/c

• Current a/c

• Fixed deposit

• Demat a/c

• Safe Deposit Lockers

• Mutual Fund

• Bonds

• Knowledge

Centre

• Insurance

• General and

Health

Insurance

• Equity and

Derivatives

• Mudra Gold

Bar

Finance

• Construction

Equipment

Finance

• Health Care

Finance

• Education Loan

• Gold Loan

Cards Payment Services

Access To Bank

• Credit Card

• Debit Card

• Prepaid Card

-------------------------------

-

Forex Services

-------------------------------

-

• Product & Services

• Trade Services

• Forex service

• NetSafe

• Merchant

• Prepaid Refill

• Billpay

• Visa Billpay

• InstaPay

• DirectPay

• VisaMoney Transfer

• e–Monies Electronic

Funds Transfer

• Online Payment of Direct

Tax

• NetBanking

• OneView

• InstaAlert

MobileBanking

• ATM

• Phone

Banking

• Email

Statements

• Branch

Network

Branch Locater

• RBI Guidelines

WHOLESALE BANKING

Corporate Small and Medium

Enterprises

Financial Institutions

and Trusts

• Funded

Services

• Non Funded

Services

• Value Added

Services

• Internet

• Funded Services

• Non Funded

Services

• Specialized Services

• Value added

services

• Internet Banking

BANKS

• Clearing Sub-

Membership

• RTGS –

submembership

• Fund Transfer

• ATM Tie-ups

Banking • 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 India’s 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 bank’s 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, who’s you’re 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 one’s Savings Account. So, even if one’s

Savings Account runs a bit short, one can issue a cheque (or use ATM

Card). The money is automatically swept in to one’s Savings Account

from one’s 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 one’s 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 one’s

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

it’s overseas operations in the last three years and now has presence in 18

countries either through subsidiaries or representative offices .Together with

it’s 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 India’s 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 :

• India’s second largest bank

• 614 branches and extension counters

• 2200 ATM’S

• 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 DSA’s and DST’s

• 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, ATM’s 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 seen…everywhere!!’

• 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 ATM’s 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. Minimum balance at Rs. 500/- per quarter for Savings Bank.

3. 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 Daily withdrawals limits of Rs. 1,000/-

b Daily spend limits of Rs. 1,000/-

c Special privileges across select alliance partners outlets.

6. Facility to invest in GOI Relief Bonds and Mutual Funds, as GOI

Relief Bonds have been discontinued.

7. Free Internet banking.

a Separate user ids and passwords for both parents and children

b 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.

Women’s 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 offer 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 arrangements, project

financing, Securitisations, M&A's, Buy-back of shares, take-

overs, 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 Bank’s 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 pre-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 instructions 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 typically 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

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

DURATION WITH BANK

Less than 6 months

3%6 months to 1

year30%

1 to 2 years50%

Over 2 years17%

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

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

REASON FOR CHOOSING BANK

34%

6%0%16%

44%

Recommended byFamily/Friend

Brand Name/Reputationof bank

Advertisement

Branch nearOffice/Residence

Other Reasons

open a saving account, this is done so by their employers. The customer’s

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

MOST FREQUENT POINT OF INTERACTION

WITH THE BANK

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.

MOST FREQUENT POINT OF INTERACTION

16

26

6

02

00

5

10

15

20

25

30

Visit Branch ATM PhoneBanking

Drop Box InternetBanking

Door Step

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 it’s infancy in India and people have not

taken to it as is the case in other Developed Countries in the World.

In the study it was seen that customers have mixed feeling when it comes to

Phone Banking as sometimes they do not find it as an effective alternate to

traditional forms of Banking.

The forth most Frequent Point of Interaction with the Bank is Internet

Banking with 4% of the respondents favoring this medium. Internet

Banking is the most modern means of Banking available to the customers

but due to the general perception that this medium is not safe it is not used

by many people.

In our study only 60% of the total respondents have at least once used

Internet Banking.

The two options which were not favored by any respondents as the most

Frequent Point of Interaction are Drop Box Facility and Door Step

Banking

.

OVERALL SATISFACTION LEVEL

Any service provider would want their customers to have a high Overall

Satisfaction level. Kotak Mahindra Bank has scored very well in this regard.

The most important thing is that 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

OVERALL SATISFACTION LEVEL

14

26

10

0 00

5

10

15

20

25

30

Very Satisfied SomewhatSatisfied

NeitherSatisfied norDissatisfied

SomewhatDissatisfied

VeryDissatisfied

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

Banks are institutions which are backed up by a large amount of capital;

today’s 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.

SATISFACTION LEVEL WITH BANK STAFF (Courtesy,Qualified)

15

23

10

20

0

5

10

15

20

25

Very Satisfied SomewhatSatisfied

NeitherSatisfied norDissatisfied

SomewhatDissatisfied

VeryDissatisfied

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)

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.

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

14

22

10

40

0

5

10

15

20

25

Very Satisfied SomewhatSatisfied

NeitherSatisfied norDissatisfied

SomewhatDissatisfied

VeryDissatisfied

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

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.

MOST IMPORTANTANT QUALITY IN A BANK

Efficient service62%

Courteous Staff26%

Décor of Bank0%

ATM 12%

The next aspect which is considered highly important by the Account

holders of various Banks is the Staff of the Bank. It is true that today’s

Banking far less of Branch Banking as it was the case a few years ago ,

today Account holders have a constant interaction with non-human interface

like ATM machines , Internet Banking , Drop Box , Even phone Banking

when customers do not interact in a face to face manner with the Bank

employees.

But in the minds of the respondents it is very important that the Staff the

Bank employs should be cooperative, courteous and qualified to solve the

various problems of the Account holders. The percentage of respondents

favoring Staff quality as most important was 26% of the entire sample size.

The most frequent point of interaction with the Bank is ATM facility, the

Account holders whether in Private/Foreign sector or the Government sector

have been provided with ATM facility by their respective Banks. To judge

the performance level of any Bank today it is crucial that the ATM service

of the Bank be studied, this includes not only the number of ATM machines

installed by the Bank , but also how technologically advanced the machines

are (number of transaction that can be done with the ATM Facility), the

effort Bank undertakes to maintain the machines and also the overall

experience of the Account holder with the service.

The percentage of respondent considering the ATM service as most

important were 12% of the total sample size.

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

Décor/Ambience of the Bank Branch was most important. On further

Questioning it was revealed that they did want well-maintained

Branches/Other Bank Interaction points but this was not the most important

aspect.

PRIVATE BANKS PROVIDE SUPERIOR SERVICES COMPARED TO

GOVERNMENT BANKS?

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.

PRIVATE BANKS PROVIDE SUPERIOR SERVICES AS COMPARED TO GOVERNMENT

BANKS ?

Yes79%

N o21%

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 it’s

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 Bank’s 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.

7. The Bank wants it’s customers to transact more through Internet

Banking and ATM, Rather than the customers using the branch.

8. The Debit Cards provided by the Bank are Internationally Accepted

around the world, hence giving the customers the convenience to

transact anytime, anywhere.

9. The Bank has tied up with other Banks so that it’s customers can use

other Bank’s ATM facility for free transactions

10. The Bank also provides DEMAT account and also sells Mutual Funds,

this provides the Bank and Government additional revenue.

11. The Bank has been very successful in enlarging its customer base

during the last couple of years.

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, Décor 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 25 to 40 40 to 55 Above 55 years

OCCUPATION

Business Professional Service Student Others

ANNUAL INCOME

Less than 1.5 Lakh 1.5 Lakh to 3 Lakh 3 Lakh to 4.5 Lakh

above 5 Lakh

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 Bank’s 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 1990’s 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 customer’s 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 don’t pose a threat to the existing private banks they

will certainly force them to gear up their strategies to remain in the field.

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.

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