Consumer cONTACT PROGRAM

Summer Training Project ReportOn

Customer Contact Program With Special Reference To Kotak Mahindra Bank At

Patna(Bihar)

A Project Report Submitted during Summer Training for the Partial Fulfillment of the Post Graduate

Diploma In Management

Ritesh Kumar Thakur

Roll no: 10SESSION (2010 - 2012)

UNDER GUIDANCE OFPROF DR. SUJEET KUMAR SINGH

United School Of Business

Greater Noida

1

CERTIFICATE

This report entitled "Customer Contact Program With Special Reference To Kotak

Mahindra Bank " submitted for the award of Post Graduate Diploma In Management.

This work has not been submitted in part or full to this or any other institute /university

for any degree or diploma.

We found him to be hard working and sincere and we wish him success in his entire

future endeavor.

(Counter Signed)

2

ACKNOWLEDGEMENT

This has been my first experience in the corporate world and has been a truly learning

experience for me. The project assigned to me had a great learning potential and

tremendous scope of application. There have been many people who have supported me

throughout the project and I take this opportunity to thank them for their time and effort.

I would begin by thanking for having the confidence in me and giving me the opportunity

to undergo my summer training in this prestigious company.

I am grateful to Mr. Sanjay Gupta for his support and encouragement. I am grateful to

Mr. Sujeet Kumar Singh, my faculty guide, without whose support and guidance, my

project would not have possible. I want to thank her profusely for her support and

encouragement she gave for this project.

I would like to thank my project guide Mr. Puneet Bansal for making every effort to

ensure that my project was truly a learning experience for me and without whose support

the project could not be completed.

I would also like to thank Mr. Ahindra Pratap Singh for giving his valuable thoughts and

helping us in understanding things better relating to the industry, which would be very

beneficial in our future aspects. Last but not the least, I would like to thank my family for

constantly encouraging and supporting me throughout my project.

3

DECLARATION

I hereby declare that the project report entitled “Customer Contact Program With

Special Reference To Kotak Mahindra Bank” is written and submitted by me (under the

guidance) is my original work.

The findings and interpretations in the report are based on the data collected by me

during the survey. This project is not copied from any source or other project submitted

for similar purpose.

Date:12/09/2011 Ritesh Kumar Thakur

Place:Greater Noida

4

CONTENTS

Chapter no. Page no.

……………………………………………………………………………………………...

CERTIFICATEACKNOWLEDGEMENTDECLARATION

Company Profile Why Customer Feedback is Important? Major Competitors Performance of Bank SWOT analysis of Bank Benefits to customers Research Methodology Marketing Strategies Data Analysis and Interpretations Major Problems faced Issues and Challenges Conclusion Learnings Questionnaires Bibliography

5

COMPANY

PROFILE

6

KOTAK MAHINDRA BANK

The Kotak Mahindra Group was born in 1985 as KOTAK Capital Management Finance

Limited. This company was promoted by Uday KOTAK, Sidney A. 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.

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.2000 crores and employs over 4,000 employees in

its various businesses. With a presence in 60 cities in India and offices in New York,

London, Dubai and Mauritius, it services a customer base of over 6, 00,000.

Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak

Mahindra Bank Ltd. (KMBL), and Old Mutual plc. At Kotak Life Insurance, we aim to

help customers 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.

Jeene Ki Azaadi...

Kotak Mahindra life insurance company belongs to the Kotak Mahindra group which is

one of the largest financial institutions in India, It gives Kotak Mahindra insurance

company an advantage to enjoy the already existing goodwill of Kotak Mahindra group.

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Kotak Mahindra Insurance company has been rewarded with FAAA rating by CRISIL

and TAAA rating by FITCH , this depicts the actual performance of the organization in

terms of its efficiency. The company spends less on marketing so it actually has more

finances available to sustain the growth of the company and provide better returns to the

customers. Kotak Mahindra offers the most flexible and innovative unique products such

as Kemp etc , which surely gives it a competitive edge over the competitors.

The distribution channel is amazing with a wide reach as the company has offices all over

India in more than 60 cities.

The company doesn’t spend much on marketing and it actually may be a reason for not

being a market leader among the private players. The company has yet to make any

significant presence in the rural sector as the brand name is yet not famous in the rural

India. The world trends in distribution channel for selling insurance are changing, these

days 55% insurance in Europe is sold through banks. Kotak has its own Kotak bank

spread all over the nation, this can be used to make cross selling possible.

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

YEAR MILESTONE ACHIVED

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

8

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.

2001 Matrix sold to Friday Corporation

Launches Insurance Services

2003 Kotak Mahindra Finance Ltd. converts to bank

9

COMPANY MANAGEMENT

1. Mr. Gaurang Shah (Managing Director)

2. Mr. G Murlidhar (Chief Financial Officer)

3. Mr. Nihar Rao (Chief Technology Officer)

4. Mr. Nandip Vaidya (Vice President - Tied Agency Sales)

5. Mr. Arun Patil (Vice President - Sales Development)

6. Mr. Jim Thompson (Appointed Actuary)

7. Mr. Eksteen de Waal (Head Sales Training)

OTHER GROUP OF COMPANIES

KOTAK MAHINDRA BANK LTD

KOTAK MAHINDRA CAPITAL COMPANY LTD

KOTAK MAHINDRA INTERNATIONAL LTD

KOTAK MAHINDRA VENTURE CAPITAL FUND

KOTAK MAHINDRA PRIMUS LTD

KOTAK SECURITIES LTD

10

WHY CUSTOMER

FEEDBACK IS

IMPORTANT?

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WHY CUSTOMER FEEDBACK IS IMPORTANT ?

Customer satisfaction research is not an end into itself. The purpose, of course, in

measuring customer satisfaction is to see where a company stands in this regard in the

eyes of its customers, thereby enabling service and product improvements which will

lead to higher satisfaction levels. The research is just one component in the quest to

improve customer satisfaction. There are many others, including:

Top management commitment,

Linking of Customer Satisfaction scores with employee and management

monetary incentives,

Recognition of employees who contribute to customers' satisfaction,

Identification, measurement, and tracking of operational variables which drive

satisfaction scores,

Customer-based improvement goals,

Plans for improving operational variables,

Incorporation of customer satisfaction skills into employee training programs,

Measurement of and plans for improvement of employee satisfaction,

Changes in corporate hiring practices.

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Top Management Commitment

Top management, through its actions, must show that customer satisfaction is important

to it. This can be done in several ways.

Acknowledging areas where the company needs to improve,

Allocating appropriate resources to the improvement of customer satisfaction,

Involvement of management and employees in the development of plans for

customer satisfaction improvement,

Linking management bonuses to satisfaction scores,

Clear and frequent communication of what is being done to improve customer

satisfaction.

How profitability can be increased by satisfying customers.

One of the reasons for the difficulty in making the connection is the intangibility of

customer churn. That is to say, how dissatisfied does a customer have to be before they

leave and sign with the competition? What might be an intolerable experience for one

customer may well exceed all expectations of another. Then there’s competition. What if

there isn’t any? Before deregulation how concerned were the large utility companies with

customer satisfaction or British Telecom come to that. Interesting therefore that the

telecoms sector is where war is being waged on customer satisfaction. Could it be that

high customer satisfaction attracts new customers and helps retain existing ones? Sounds

like that could be worth something.

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There is no question that customer satisfaction is difficult to measure, but why is

measurement so essential?

Employee Satisfaction:

In today’s scenario one of the most important tool for any organization is to satisfy their

employees. There are some patterns which an organization has to follow for the

satisfaction of their employees.

believe that the organization will be satisfying in the long run

care about the quality of their work

are more committed to the organization

have higher retention rates, and

are more productive

There are six factors which influences job satisfaction:

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Opportunity:

Employees are more satisfied when they have challenging opportunities at work. This

includes chances to participate in interesting projects, jobs with a satisfying degree of

challenge and opportunities for increased responsibility. Important: this is not simply

"promotional opportunity." As organizations have become flatter, promotions can be rare.

People have found challenge through projects, team leadership, special assignments-as

well as promotions.

Promote from within when possible.

Reward promising employees with roles on interesting projects.

Divide jobs into levels of increasing leadership and responsibility.

It may be possible to create job titles that demonstrate increasing levels of expertise

which are not limited by availability of positions. They simply demonstrate achievement.

Stress:

When negative stress is continuously high, job satisfaction is low. Jobs are more stressful

if they interfere with employees' personal lives or are a continuing source of worry or

concern.

Promote a balance of work and personal lives. Make sure that senior

managers model this behavior.

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Distribute work evenly (fairly) within work teams.

Review work procedures to remove unnecessary "red tape" or

bureaucracy.

Manage the number of interruptions employees have to endure while

trying to do their jobs.

Some organizations utilize exercise or "fun" breaks at work.

Leadership:

Employees are more satisfied when their managers are good leaders. This includes

motivating employees to do a good job, striving for excellence or just taking action.

Make sure your managers are well trained. Leadership combines attitudes

and behavior. It can be learned.

People respond to managers that they can trust and who inspire them to

achieve meaningful goals.

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Work Standards:

Employees are more satisfied when their entire workgroup takes pride in the quality of its

work.

Encourage communication between employees and customers. Quality

gains importance when employees see its impact on customers.

Develop meaningful measures of quality. Celebrate achievements in

quality.

Be cautious of slick, "packaged" campaigns that are perceived as superficial

and patronizing.

Fair Rewards:

Employees are more satisfied when they feel they are rewarded fairly for the work they

do. Consider employee responsibilities, the effort they have put forth, the work they have

done well and the demands of their jobs.

Make sure rewards are for genuine contributions to the organization.

Be consistent in your reward policies.

If your wages are competitive, make sure employees know this.

Rewards can include a variety of benefits and perks other than money.

As an added benefit, employees who are rewarded fairly, experience less stress.

Adequate Authority:

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Employees are more satisfied when they have adequate freedom and authority to do their

jobs. :

Let employees make decisions.

Allow employees to have input on decisions that will affect them.

Establish work goals but let employees determine how they will achieve

those goals. Later reviews may identify innovative "best practices."

Ask, "If there were just one or two decisions that you could make, which

ones would make the biggest difference in your job?"

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MAJOR COMPETITORS OF KOTAK MAHINDRA BANK

19

MAJOR COMPETITORS OF KOTAK MAHINDRA BANK are as follows:-

Public Sector Banks

Bank of Baroda

State Bank of India

Allahabad Bank

Canara Bank

Punjab National Bank

Private Sector Banks

HDFC Bank

UTI Bank

ICICI Bank

Kotak Mahindra Bank

Centurion Bank of Punjab

Foreign Sector Banks

Citibank

Standard Chartered Bank

HSBC Bank

ABN AMRO Bank

American Express

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PERFORMANCE OF BANK

21

KOTAK MAHINDRA BANK PERFORMANCE (all products & services)

Consolidated financial revenues

Profits

Consolidated financial assets

Consolidated financial liabilities

Consolidated financial analytical ratios

Company wise profit after tax

Kotak Mahindra bank-standalone

Segmental profit before tax

Kotak Mahindra bank-standalone assets

Liabilities

Bank performance highlights

Key subsidiaries-highlights

Kotak securities-stock broking

Kotak Mahindra primus-car finance

Kotak Mahindra asset management company-asset management

Kotak Mahindra old mutual life insurance-life insurance

Earnings Update – Q1 FY06 Unaudited Results July 26, 2005

The Board of Directors of Kotak Mahindra Bank Limited at their meeting held ,took on

record the unaudited financial results

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Performance Highlight (Figure in millions)

• Consolidated total income up 62% to Rs 4,555.1 mn in Q1FY06 from Rs 2,809.7 mn in

Q1FY05.

• Consolidated fee income (including insurance) up 101% to Rs 1,966.8 mn in Q1FY06

from Rs 979.0 mn in Q1FY05.

• Consolidated advances up 61% YoY to Rs 77.2 bn as on June 30, 2005, with retail

loans comprising 88% of the portfolio.

• The group employee strength was over 4,800 as on June 30, 2005 (around 3,400

employees as on June 30, 2004).

• Net Interest Income (NII) of the Bank standalone for Q1FY06 up 51% to Rs 693.0 mn.

• Deposits of the Bank grew by 71% from Rs 28.5 bn as on June 30, 2004 to Rs 48.8 bn

as on June 30, 2005. Total number of deposit accounts was around 86,300 as on June 30,

2005 (28,000 as on June 30, 2004).

• Kotak Investment Banking was awarded the ‘Best Equity House’ in India by Euro

money for 2005.

• Kotak Securities was awarded the ‘Best Broker’ in India by Finance Asia for 2005.

• Kotak Securities clocked average daily volumes of around Rs 14.6 bn during Q1FY06

(around Rs 7.6 bn in Q1FY05).

• Kotak Life Insurance recorded 109% growth in premium income from Rs 282.7 mn in

Q1FY05 to Rs 592.0 mn in Q1FY06.

• Equity assets managed by the group in mutual fund, portfolio management and offshore

funds was over Rs 43 bn as on June 30, 2005 (around Rs 21 bn as on June 30, 2004).

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• In July 2005, the new fund offer from Kotak Mahindra Mutual Fund for Kotak Contra

scheme garnered Rs 6.4 bn from about 74,000 investors from 103 locations.

Consolidated Financials Revenues

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Financing activities 1,892.7 1,301.2 45.5% 1,786.4 6,164.4

Fee income 1,397.2 715.7 95.2% 1,514.6 3,997.8

Insurance Premium 569.6 264.0 115.8% 3,192.3 4,608.9

Treasury / Investments 535.6 426.7 25.5% 484.9 1,891.3

Others 160.0 102.1 56.7% 177.0 449.2

Total Revenues 4,555.1 2,809.7 62.1% 7,155.2 17,111.5

Profits

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Total operating profits before retail liabilities and life insurance losses 1,151.5 823.8

39.8% 1,303.6 4,018.0

Loss on Retail liabilities and branch banking (136.2) (119.2) -(84.1) (464.3)

Loss on Life Insurance (149.0) (147.5) - (56.2) (458.0)

Profit before Tax 866.4 557.1 55.5% 1,163.3 3,095.6

PAT (before minority interest/ associates/ adjustments) 532.4 333.8 59.5% 769.2 1,938.9

PAT (after minority interest/ associates / adjustments) 464.7 307.0 51.4% 642.8 1,709.1

EPS (diluted) (Rs) (non annualized) 3.7 2.6 43.8% 5.3 14.2

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Consolidated Financial Assets

As on June 30, 2005

As on June 30, 2004 Growth (%) YOY

As on March 31, 2005 Advances

• Commercial Vehicles 17,521 13,450 30.3% 17,175

• Car Loans 27,178 23,384 16.2% 25,975

• Personal Loans 6,396 374 89.6% 5,421

• Home Loans 5,219 1,445 261.1% 4,006

• Corporate + SME 9,510 3,117 205.1% 9,004

• Others 11,382 3,150 261.4% 9,866

Total Advances 77,207 47,920 61.1% 71,447

Investments / Treasury Assets 30,378 18,150 67.4% 27,057

Total Advances and Investments 107,585 66,071 62.8% 98,504

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Consolidated Financials Liabilities

As on June 30, 2005

As on June 30, 2004 Growth (%) YOY

As on March 31, 2005

Deposits 43,390 25,685 68.9% 38,326

Borrowings 40,014 25,632 56.1% 38,073

Consolidated Financials Analytical Ratios

As on June 30, 2005

As on June 30, 2004

As on March 31, 2005

Net-worth after minority interest (Rs mn) 15,138 12,666 14,668

Book value per share (Rs) 123 106 119

Gross NPAs (Rs mn) 492 347 372

Net NPAs (Rs mn) 255 104 202

Net NPAs (%) 0.3% 0.2% 0.3%

Annualized Return on average Net-worth (%) 12.5% 9.8% 12.6%

Annualized Pre-Tax Return on average Net-worth (%) (before loss on retail liabilities and

branch banking and life insurance businesses) 31.1% 26.4% 29.7%

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Company-wise Profit After Tax

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Kotak Mahindra Bank (Standalone) 196.8 220.6 -10.8% 230.8 848.9

Kotak Mahindra Capital Company 34.4 19.3 78.7% 62.3 158.2

Kotak Securities 340.0 193.9 75.4% 433.7 1,055.9

Kotak Mahindra Primus 13.3 23.7 -43.7% 13.3 92.3

Kotak Mahindra AMC & Trustee Co 19.3 15.5 24.6% 7.7 45.1

Kotak Mahindra Old Mutual Life Insurance (150.5) (147.5) -(56.2) (458.0)

Kotak Mahindra Investments 48.1 23.0 109.1% 72.5 205.2

International subsidiaries * 0.7 36.4 -98.0% 98.5 125.4

Others 34.0 (2.0) -22.1 37.8

Total consolidated profit after tax 536.2 382.8 40.1% 884.6 2,110.7

Less: Minority interest & other adjustments (72.7) (82.3) -(252.2) (434.9)

Add: Equity affiliates 1.2 6.5 -81.0% 10.4 33.3

PAT (after minority interest / adjustments) 464.7 307.0 51.4% 642.8 1,709.1

For FY05, the financials for international subsidiaries are for 15 month period from

January 2004 to March 2005. Q4 FY05 financials are for a six month period for these

subsidiaries and Q1 FY05 financials are for a 3 month period ending March 2004.

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Kotak Mahindra Bank – Standalone

Segmental Revenues Q1 FY06 Q1 FY05 Growth (%) YOY Q4 FY05 FY 05 (3 months)

(3 months) (3 months) (12 months)

Retail Lending 1,006.9 582.8 72.8% 951.0 2,935.6

Corporate Banking 315.1 208.4 51.3% 259.1 1,060.3

Retail Liabilities and Branch Banking 206.2 48.6 324.7% 260.6 503.5

Treasury 480.1 308.2 55.8% 372.0 1,339.8

Corporate Centre 159.3 231.7 -31.2% 217.7 836.7

Inter-segment revenue (400.3) (235.4) - (344.9) (1,155.4)

Un-allocable revenue (net) --(0.8) 3.3

Total Revenue 1,767.3 1,144.3 54.4% 1,714.7 5,523.8

Operating profit before losses on retail liabilities & branch banking 443.5 424.8 4.4%

403.9 1,648.2

Retail Liabilities and Branch Banking loss (136.2) (119.2) - (84.1) (464.3)

Profit before tax 307.3 305.6 0.6%319.8 1,183.9

Provision for tax 110.5 85.0 30.0% 89.0 335.0

Profit after tax 196.8 220.6 -10.8% 230.8 848.9

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Segmental Profit before tax

Q1 FY06

Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Retail Lending 277.3 168.9 64.2% 274.0 815.8

Corporate Banking 60.2 65.2 -7.7% 9.6 251.9

Retail Liabilities and Branch Banking (136.2) (119.2) - (84.1) (464.3)

Treasury (16.3) (16.5) -(60.8) (148.4)

Corporate Centre 122.3 207.2 -40.4% 181.8 725.6

Un allocable Expenditure -(0.8) 3.3

Total PBT 307.3 305.6 0.6% 319.8 1,183.9

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Kotak Mahindra Bank – Standalone Assets

As on June 30, 2005

As on June 30, 2004 Growth (%) YOY

As on March 31, 2005

Advances

• Commercial Vehicles 17,521 13,450 30.3% 17,175

• Personal Loans 6,396 3,374 89.6% 5,421

• Home Loans 5,219 1,445 261.1% 4,006

• Corporate + SME 9,510 3,162 200.8% 9,021

• Others 4,916 1,583 210.4% 4,548

Total Advances 43,562 23,014 89.3% 40,171

Treasury Assets 20,862 13,930 49.8% 18,270

Total Advances and Investments 64,425 36,944 74.4% 58,441

Liabilities

As on June 30, 2005

As on June 30, 2004 Growth (%) YOY

As on March 31, 2005

Deposits 48,819 28,499 71.3% 42,995

Borrowings 9,467 4,304 120.0% 9,855

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Bank Performance Highlights

• As on June 30, 2005, the Bank had 42 full-fledged bank branches (38 branches as on

March 31, 2005 and 20 branches as on June 30, 2004) across 25 cities in India. The Bank

proposes to have a total of around 65 - 70 full-fledged branches by March 2006 and 90 -

100 full-fledged branches by March 2007 across 45 to 50 towns and cities.

• Fees from third party distributed products at Rs 91.6 mn for Q1FY06 grew around 5

times as compared to Q1FY05. The mutual fund assets under management distributed by

the Bank were around Rs 27 bn as on June 30, 2005 (Rs 19 bn as on June 30, 2004).

• NII of the Bank for Q1FY06 was Rs 693.0 mn up by 51% (Rs 459.4 mn in Q1FY05).

• Advances up 89% YoY to Rs 43.6 bn.

• Commercial vehicle advances up 30% YoY to Rs 17.5 bn. Personal loans up 90% to Rs

6.4 bn.

• Deposits of the Bank grew by 71% from Rs 28.5 bn as on June 30, 2004 to Rs 48.8 bn

as on June 30, 2005. Total number of deposit accounts was around 86,300 as on June 30,

2005 (28,000 as on June 30, 2004).

• PBT of the retail lending segment was up 64% from Rs 277.3 mn in Q1FY05 to Rs

168.9 mn in Q1FY06.

• Capital adequacy ratio as on June 30, 2005 was 12.52% (14.69% as on June 30, 2004).

• During the quarter the Bank issued Rs 663.0 mn of Bonds eligible to be classified as

Tier II Capital. As on June 30, 2005, the Bank has issued Rs 1,500 mn of such Bonds.

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Key Subsidiaries – Highlights

Kotak Mahindra Capital Company – Investment banking and primary dealer

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Total income 188.9 115.8 63.2% 224.5 629.6

Profit before tax 42.2 21.5 96.5% 64.3 191.3

Profit after tax 34.4 19.3 79.2% 62.3 158.2

• Kotak Investment Banking was awarded the ‘Best Equity House’ in India by Euro

money for 2005.

• During the quarter, successfully completed equity offerings of All sec Technologies,

Oriental Bank of Commerce, Allahabad Bank and Shopper’s Stop, all of which received

enthusiastic response from investors.

• Kotak Investment Banking continued to build its equity issuance business by preparing

to launch a number of offerings like IPO of IL&FS Invest smart, IDFC and HT Media

and rights issues of Nicholas Piramal and Ramco Systems.

• Successfully concluded Standard & Poor's transaction relating to the acquisition of a

controlling stake in CRISIL Ltd through a voluntary conditional tender offer structure.

• Exclusive financial advisors to Raymond Ltd in their proposed acquisition of Ring Plus

Aqua Ltd assisting Raymond Ltd in increasing its presence in the engineering sector.

• In July 2005, Kotak Investment Banking through its International subsidiaries acted as

Joint Lead Manager and Joint Book runner to the successful GDR issuance by Apollo

Hospitals Enterprise Limited.

32

• Segmental loss for Trading and Principal Investments stood at Rs 53.4 mn for Q1FY06

as compared to profit before tax of Rs 7.84 mn for Q1FY05.

Kotak Securities – stock broking

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Total income 1,033.3 638.5 61.8% 1,289.0 3,296.5

Profit before tax 493.5 296.9 66.2% 678.4 1,641.1

Profit after tax 340.0 193.9 75.3% 433.7 1,055.9

• Kotak Securities was awarded the ‘Best Broker’ in India by Finance Asia for the year

2005.

• Kotak Securities (retail, online and institutional segments) clocked average daily

volumes of over Rs 14.6 bn during Q1FY06 as compared to around Rs 7.6 bn during

Q1FY05.

• Average daily volumes on www.Kotakstreet.com (online) during Q1FY06 increased to

Rs 1,380 mn from Rs 530 mn during Q1FY05.

• AUM in Portfolio Management Services (PMS) was Rs 20.8 bn as on June 30, 2005 (Rs

11.6 bn as on June 30, 2004).

• Kotak Institutional Equities continued to gain market share with revenues rising more

than 40% YoY in Q1FY06. This has been achieved through continuous investments in

our research products, increased emphasis on marketing and client relationships, both in

terms of depth and width.

• Kotak Securities has a network of over 515 offices (own & franchisees) across 181

cities and towns and over 155,000 secondary market clients.

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Kotak Mahindra Primus – car finance

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Total income 670.9 622.2 7.8% 647.2 2,595.8

Profit before royalty & taxes 135.9 155.2 -12.4% 125.2 593.9

Profit after royalty before taxes 20.2 36.5 -44.7% 9.6 135.8

Profit after tax 13.3 23.7 -43.9% 13.3 92.3

• Advances at Rs 27.2 bn as on June 30, 2005, up 16% YoY.

• In June 2005, Kotak Group and Ford Credit International (FCI) announced the

realignment of their joint ventures. Kotak Group will acquire the 40% stake in Kotak

Mahindra Primus held by FCI, and FCI will acquire the stake in Ford Credit Kota

Mahindra held by Kotak Group. The transactions are subject to regulatory approvals.

34

Kotak Mahindra Asset Management Company – asset management

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Total income (AMC) 79.8 73.1 9.2% 48.5 233.6

Profit before tax (AMC) 21.8 16.1 35.4% 2.6 31.3

Profit after tax (AMC) 14.2 11.8 20.3% 2.6 28.9

Profit before tax (Trustee Company) 7.5 5.8 29.3% 8.0 25.2

Profit after tax (Trustee Company) 5.1 3.7 37.8% 5.1 16.1

• Total AUM as on June 30, 2005 was Rs 65.0 bn (Rs 56.5 bn as on June 30, 2004).

Equity AUM as on June 30, 2005 was Rs 10.6 bn (Rs 6.1 bn as on June 30, 2004).

• In July 2005, the new fund offer for Kotak Contra garnered Rs 6.4 bn from about

74,000 investors from 103 locations.

• Presence in 69 cities through 34 branches and franchisees

35

Kotak Mahindra Old Mutual Life Insurance - life insurance

Q1 FY06 Q1 FY05 Growth (%) YOY

Q4 FY05 FY 05 (3 months) (3 months) (3 months) (12 months)

Gross premium income 592.0 282.7 109.4% 3,206.8 4,661.6

Loss (150.5) (147.5) -(56.2) (458.0)

• Kotak Life Insurance (KLI) recorded 109% growth in premium income from Rs 282.7

mn in Q1FY05 to Rs 592 mn in Q1FY06.

• KLI has a network of 44 branches in 30 cities.

• As on June 30, 2005, KLI had around 126,000 individual policies on books representing

a basic sum assured of Rs 57.8 bn (excluding riders). Additionally, the company had 87

group policies covering around 97,000 lives with an aggregate sum assured of Rs 20.5

bn.

36

SWOT analysis of Kotak Mahindra bank

COMPETITIVE ADVANTAGE

SWOT ANALYSIS

Environmental Scan

Internal Analysis External Analysis

Strength Weaknesses Opportunities Threats

SWOT Matrix

37

STRENGTHS

1. The Kotak Mahindra group which is one of the largest financial institutions in

India, ever since its inception in 1986 the Kotak Mahindra group has created

numerous success stories in whatever business they landed. It gives Kotak

Mahindra insurance company an advantage to enjoy the already existing

goodwill of Kotak Mahindra group.

2. The Kotak Mahindra insurance company is a joint venture of old mutual and

Kotak Mahindra. Old Mutual was established more than 150 years ago and the

company is listed on the London Stock Exchange with a market capitalization of

approximately $6 billion and is a member of the elite FTSE 100 index. In the

2003 rankings of the World's 500 largest corporations by Fortune magazine, Old

Mutual climbed 87 places to position number 366 and was also listed as the 14th

largest insurance company in the world. The joint venture enjoys the blend of one

of the most experienced and trusted companies internationally as well as

nationally.

3. Kotak Mahindra Company has one of the lowest Non Performing Assets (NPA’s)

in the industry which is .16%. It provides the company a strong financial stability

as well as depicts who cohesively the company manages itself.

38

4. Kotak Mahindra Company has been rewarded with FAAA rating by CRISIL

and AAA rating by FITCH, this depicts the actual performance of the

organization in terms of its efficiency.

5. The company spends less on marketing so it actually has more finances available

to sustain the growth of the company and provide better returns to the customers.

6. Kotak Mahindra offers the most flexible and innovative unique products such as

Kemp etc , which surely gives it a competitive edge over the competitors.

7. The distribution channel is amazing with a wide reach as the company has offices

all over India in more than 60 cities.

39

WEAKNESS

1. The company doesn’t spend much on marketing and it actually may be a reason

for not being a market leader among the private players.

2. The company has yet to make any significant presence in the rural sector as the

brand name is yet not famous in the rural India.

3. The company has a conservative approach and they believe in steady and very

safe progress , which actually results them to be in a position where they are

behind some of the more aggressive market players like ICICI

4. In India the rural market and middle class society still don’t have faith in private

insurers and their genuinity.

OPPORTUNITIES

1. The whole rural market is a kind of niche segment for opening of accounts,

deposits, borrowings, and insurance business. The only company which has some

presence in rural market is LIC. So, Kotak is at par with all other private

companies and the its an equal competition for all, there is an opportunity to make

a mark and be the first among the private insurers and capture the rural market.

40

2. The Kotak being such a big name has an opportunity to grow its insurance

business as well increase its distribution channel whole over the world by using the

goodwill of the group companies and they can even target the customers of each

company of their group to get insurance through them by offering special

incentives or schemes, such as providing medical insurances along with saving

accounts in their banks etc.

3. The good showing at the stock markets and growing Indian economy enables the

Kotak company to give better returns to customers, specially in unit link schemes.

4. The world trends in distribution channel for selling products are changing, these

days 55% insurance in Europe is sold through banks. Kotak has its own Kotak

bank spread all over the nation, this can be used to make cross selling possible.

THREATS

1. The rural India and middle class India still don’t have faith in private players.

2. The Kotak Mahindra company is competing with private companies which are

spending huge amounts on marketing, so to maintain a competitive edge with

these companies in terms of acquiring market shares would be a tough task.

41

MARKETING STRATEGIES

42

MARKETING STRATEGIES

KOTAK BANK carried out various marketing initiatives to enhance its reach. They

included segregating and targeting existing high value customers, cross sales of other

products, setting up call centers and outbound sales force to secure new customers. Plans

were also made to utilize database marketing to pursue large and medium sized corporate,

government and trade finance customers.

Database marketing was expected to draw increased revenue from cross selling, lower

costs and increased customer loyalty. KOTAK also introduced various other ways of

reaching out to customers like extension of hours of work and aggressive marketing

through print and television media. It increased daily working hours by two hours and

Sunday banking was introduced.

CHANNEL MANAGEMNENT

For better channel management there are so many tools like proper communication

among the channel, the selection of right financial advisor they should understand the

Opportunity and should be self motivated, the important part of the growth of the

financial companies is that they should properly manage there channel.

43

MARKET SCENARIO:

There are two basic models upon which the distribution of products and services. One is

the traditional model and other comprises of some modifications over and above the basic

model.

Traditional Model

The traditional model comprises of distribution of life insurance through individual life

advisors. It has been the basic model used before the opening up of the insurance sector

and when LIC was the only player in this sector. This has also proven to be the most

successful of the distribution channels used until now. It had the advantage of direct

selling wherein the life advisors used to interact directly with the customers. But the

major problem with this entire structure was that in a long period of time it resulted out in

too many a life advisor in numbers. And keeping a check on the functioning of this many

number of life advisors became more and more tedious. This resulted in trying out of

other channels of distribution, which would result in the entire structure getting shrunk in

terms of the direct follow-ups of the life advisors yet giving a deeper coverage and

penetration in the market. And this was possible only through some basic modifications

being made in the traditional model.

44

Alternate Model

In the alternate model what was done was either the span of control for the Sales

Managers was decreased or the penetration in terms of the reach to the people was

increased. So, where the SM earlier managed a field force of 15-20 Life Advisors, he

may now handle just 4-5 Corporate Agents, who in turn end up with 15-20 Field

Executives each. The following are the basic type of the structure that has been

introduced so far.

THE INTERMEDIARIES

In majority of cases, the prices of the produce or goods manufactured or the services

rendered is not dependent on the customer but on the perceived value of the offer. In such

cases the role of the intermediary stops with bringing the sellers & the buyers together &

influencing the buyer to buy the product on offer.

In case of insurance, the prices also depend on details furnished by the buyer, for

example, under life & health policies, the person's age, present state of health,

occupation, determine the nature & price of the product. The insurance instrument is

unique in another aspect as well. Insurance transactions are becoming more & more

complex & in spite of the details being furnished by the insurer in the policy document,

many insured claim that they do not understand the provisions of the contract in the view

of their technical nature.

45

In the view of the above, the role of the intermediary gains much importance. The

intermediary has obligation towards the insured as well as the insurer.

For the insured, he has to explain the provisions of the contract. He has to guide

the client keeping in view his insurance needs.

For the insurer, he has to facilitate getting information about the insured.

Due to above reasons, despite of rapid technological advances the human face of

intermediary continues to hold sway in the insurance industry.

Agents

Agents perform the task of retailers; giving customers information about the available

choices& helping them make purchase decisions. Agents may be appointed in any place

for the purpose of soliciting or procuring insurance business for the company.

The main function, the agent should be expected to perform would include - client

identification , marketing, investors' education & counseling, marketing expansion &

quality control of front line agents, collection of premium.

Brokers

Insurance brokers are organizations who assess the complete insurance heeds of the

clients and' then work out back-to-back policies with insurers to give a complete solution

to the client. The' distribution strategy here is quite different since the brokers will have

to access to multiple insurers. Ultimately, the variety of policies and options and the level

of service given by different insurers will have to direct impact on the market share and

mind share of the insurer with the broker. In the present day economic environment many

46

companies and institutions find themselves unable to optimise insurance related matters

with the sole use of their personnel. This happens because of :

The specific nature of insurance terminology and procedure.

Frequent changes affecting the position of insurers.

The complex character of an insurance contract.

The supply of increasingly complicated insurance products.

Insufficient knowledge of the insurance market.

As a result, modern insurance markets have developed the institution of independent

insurance brokers, i.e. highly specialized experts, dedicated to support the clients and

their interests before the insurer.

There are three types: -

Direct Broker- Licensed to carry on both life as well as general insurance broking

direct basis only.

Re-insurance broker- licensed to carry on re-insurance broking only.

Composite Brokers-Licensed to carry on both direct as well as re- insurance

broking.

47

CORPORATE AGENTS & DIRECT SALES AGENT (DSA)

DSAs provide a very wide reach in India. Some DSAs already distribute financial

products such as credit cards, loans & even non-life insurance products. This is a much

diversified channel. Each DSA must be evaluated based on its own characteristics. Some

are small & target very knowledgeable clients. These are best served through the

financial planning techniques. Some are large & use a mass-market approach in their

existing business. These are best served using direct mail or tele-marketing approach.

There are some that are hybrid with a small wealthy clientele along with a mass market.

It is best for the insurer to segment these markets using appropriate distribution

techniques.

The products for this channel must again match the distribution technique. If the DSA has

a simple clientele, simple straightforward products (return of premium term, single

premium term & non- participating endowment with all the simplified Underwriting) are

sufficient. However, more sophisticated-client require the-product range to be wide to

match the needs identified during the sales process.

The DSAs & the Insurers must view each other with great clarity. Not all DSAs want to

or are suitable to distribute Insurance. The payback can be even longer than bank

assurance. Therefore the need for commitment & management is greater than in case of

bank assurance. This has proven to be a very successful channel for other products but

yet to be proven for insurance. This is a very promising channel but will require much

time & effort.

48

NON GOVERNMENT ORGANISATION (NGO)

NGOs are non - profit organizations working towards the social goal. Most often this is

realized through foreign funding, though domestic funding is also available. The ethos of

these organizations is to spread social & financial benefits in areas & groups of

population, who do not have access to these benefits. Normally a large NGO will work

through several small NGOs & Self Help Groups (SHG) & deliver their service down to

the grass root level of the rural society.

To distribute insurance products through these channels, a thorough understanding of the

ethos of these organizations and their methods of operation is crucial. The distribution

has to happen at the grassroots level of comfort and security in dealing in groups. There

will be opinion leaders among these groups who will be the main proponents - followed

by the rest of their respective groups. The training and product distribution will have to

flow from the NGO to this level and has to be delivered in a customized manner typical

of the rural market place. There is also a need of robust mechanism of premium

collections year on year. The rural population normally prefers monthly premium in line

with the micro finance repayments.

49

BANK ASSURANCE

With changes in the agency regulations in insurance / banking regulations & emerging of

the brokerage models, Banks would now be able to play more proactive role as a

distributor of Insurance products.

Bank assurance should be one of the priority tie-up areas as a distributing channel for

personal lines products. International experience has been that:

It is very easy to synchronize the banking & insurance products.

It is a cost effective way to achieve volumes.

It is simple to operate.

Have a large customer base.

Branch name recognition.

MLM (Multi Level Marketing)

Multi-level marketing is system of marketing which puts more emphases upon the

recruiting of distributors than on the selling of products. MLM is very attractive,

however, because it sells hope and appears to be outside the mainstream of business as

usual. It promises wealth and independence to all.

In the insurance sector different MLM's try to tap up as the corporate agents. But there

functioning can be either straight way just in case of a corporate agent or as a MLM

wherein the entire chain is used up and the commissions are penetrated and passed on

50

deep within the chain. The structure of the working of the MLM's can be made according

to the specific needs and demand the company to be tied up with.

Unfortunately, no matter what the product, MLM is doomed to produce more failures

than successes, For every MLM distributor who makes a decent living or even a decent

supplemental income, there are at least ten who do little more than buy products and

promotional materials, costing them much more than they will ever earn as an MLM

agent. The most successful MLM scheme is Amway.

The reason MLM schemes cannot succeed is because MLM marketing is, in essence, a

legal <pyramid.html> scheme. The basic idea is for a sales person to recruit more sales

persons. This is very advantageous to those who own the company and supply the

products, especially since the sales persons in MLMs are also customers. But it is

puzzling why a sales person would think it is to his or her advantage to increase the

number of competing sales persons.

HNI (High Net worth Individuals)

It basically works on the elite selling model. In the HNI model the insurance companies

try to tap the customer segment in the higher echelons of the society so that it can cater to

a high average policy size.

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BARRIERS:

Of late every other company in the insurance business has been trying to use these

alternative distribution channels to make a mark in the market. There has been a survey

conducted by the OM KOTAK MAHINDRA company to test the feasibility of such

alternative distribution channels and know the problems that can be faced for developing

these alternative distribution channels in the year 2004 .The results are as under.

With this segment being an obvious choice it was probably explored and

explored again by most of the players in Life Insurance. Thus a large section of

the companies that were contacted were already attached to some insurance

company.

Another aspect raised a number of times in our communication with such

companies was the overwhelming presence of LIC, wherein it became difficult to

sell the concept of efficiency and return by a private player in comparison to the

security offered by LIC with an implicit sovereign backing.

A large number of such companies which had already tried in related areas of

push sales as credit cards, loans etc were convinced that it was very difficult to

sell insurance and with the people not showing much faith in the private players

it became even tougher.

Another issue raised by a few as a passing remark was the high turnover of

salesmen in such a business, and that the salesmen did not have much incentive

to stay with the corporate agent as against working on his own as an insurance

agent.

52

INTERMEDIARIES:

1. AGENTS

POSITIVE ASPECTS

The main function, the agent should be expected to perform would include-

Client identification,

Marketing,

Investors' education & Counseling,

Marketing expansion,

Quality control of front line agents,

Collection of premium,

NEGATIVE ASPECTS

The agent, in general, needs to be more knowledgeable & professional as the

people have limited knowledge about insurance & hence his advice & opinion is

valued, But it has been noticed that there is lack of an adequately trained agency

force often implying lack of professionalism, resulting in clients being sold the

product that carry -the highest commission.

Moreover, the company has little control over agent activity & can’t influence

sound/ethical work practices, Production levels are extremely low, Persistency is

poor & adversely impacts company's profitability.

53

2. BROKERS

POSITIVE ASPECTS:

They take instructions from their clients.

Execute them in an efficient manner. . Assist in the negotiations of claims.

They help in current monitoring of the insurance market, especially the

credibility of insurers and the quality of services they render to the clients.

They analyze available insurance products.

Brokers provide assistance to the clients regarding the choice between the

securities offered by insurance.

They have commitment on the side of the client in the process of arrangement

and conclusion of insurance contracts, especially concerning negotiations or the

terms and conditions of the insurance.

NEGATIVE ASPECTS:

Since the brokers deal in more than one product, in one or the other way

company loses profitability if it's product doesn't find favor with the broker.

There are minimum capital requirements.

The norms stated by the IRDA are stringent. Thus, fewer brokers are there.

54

3. CORPORATE AND DIRECT SALES AGENT

POSITIVE ASPECTS

They help in segmentation of the market. Some DSA caterer to small

knowledgeable clients and some to wealthy clients.

They provide a wide reach in India.

DSA is a much-diversified channel.

NEGATIVE ASPECTS

Lack of control

The payback in case of DSA can be even longer than bank assurance.

There is lack of adequate commitment and management.

This channel requires a lot of time and effort.

4. NGO

POSITIVE ASPECTS

They spread social & financial benefits in areas & groups of population, who do

not have access to these benefits.

A NGO will distribute such benefits through other NGO's to reach the grass root

level. Thus leading to formation of a chain of distribution.

NEGATIVE ASPECTS

55

Companies have to come up with new products keeping in mind the special

needs of the rural people. This would require a lot of time, effort and capital. For

e.g. people in rural areas prefer monthly mode of payment of premium.

The product needs to be distributed in a customized and typical rural manner.

A robust mechanism would be required for premium collections year after year.

Communicating the need of life insurance in the rural India.

5. BANK ASSURANCE

POSITIVE ASPECTS:

It is very easy to synchronize the banking & insurance products.

It is a cost effective way to achieve volumes.

It is simple to operate.

Have a large customer base.

Branch name recognition.

Credibility.

NEGATIVE ASPECTS:

Customers do not see banks as a primary source of insurance.

No confidence in the Bank's financial expertise outside its usual activities.

56

There are well developed distribution channels for insurance that are effective.

Banks presume that they could get easy sales by cross selling insurance

forgetting that they are not good cross sellers.

Life insurance is different from fixed deposits, because the former has no liquidity for the

first three years, followed by limited liquidity whereas the latter has total liquidity as well

as an assured interest rate. Besides, the yield on life insurance is in the form of bonus, is

not guaranteed. And it is much more difficult to sell life insurance products on the basis

of its main benefits i.e. risk coverage. So the past experience of the bank employees may

not be relevant in selling insurance.

People buy bank products, whereas, the insurance needs to be sold.

Fewer opportunities are available to the bank employees to sell insurance as with the

advent of the ATM fever the visits of the customer to the banks have reduced

considerably.

1. MULTI LEVEL MARKETING (MLM)

57

POSITIVE ASPECTS:

The structure of the working of the MLM's can be made according to the specific

needs and demand of the company to be tied up with.

NEGATIVE ASPECTS:

The costs involved in the MLM structure are very high.

The MLM marketing is the form of a pyramid.

58

59

BENEFITS/ADVANTAGES

60

Benefits provided by Kotak Mahindra bank for customers are as follows :-

For their consumers, Kotak Mahindra bank provide following benefits to its

consumers

1. Free access at all Visa ATMs –

Use your Kotak Mahindra Bank Global Debit Card to withdraw cash from any Visa

ATM across India - free of cost!

2. Free Cash Delivery/Pick Up –

Get Cash delivered, as low as Rs.5000/-, to your doorstep. Also, get Cash and/or

Cheques picked up from your home/office.

3. Free Demand Drafts –

Avail DDs, free of cost, payable at any location in India, up to a pre-specified limit.

4. Free At-par Cheques –

Get free At-par Cheques that are treated as ‘local clearing cheques across all our branch

locations.

61

5. Attractive Returns –

Earn higher returns with our 2-way Sweep facility that automatically moves idle funds in

your account into Term Deposits (TDs) or Liquid Mutual Funds(MFs). These TDs / MFs

are broken/redeemed to bring back funds when required, thereby providing you

maximum liquidity

6. Electronic Fund Transfer –

Transfer funds electronically to third party accounts in other banks across 15 cities. At-

Home Services - Make Utility Bill payments like electricity, telephone and mobile

phone.

7. Family Savings Account -

Extend the privileges of banking with Kotak to your family members! Open our feature

rich Family Savings Account for your loved ones!

8. Free Investment Account –

Avail a ‘free’ Investment Account that provides you the unique opportunity to monitor

and manage your investments in Mutual Funds. You can Purchase/Redeem MFs online

through the Net Banking facility. Also get a consolidated view of all your MF

investments, across schemes, with updated returns status, NAV information etc.

62

9. Online trading in Shares –

Trade online in the stock market through Kotakstreet.com and take advantage of our

De-mat Services to hold your securities with the Bank. What’s more, you can use our

Payment Gateway facility to settle your dues directly from your bank account.

10. Personal Investment Advisor –

To identify and analyse your specific investment requirements we provide you a

dedicated Personal Investment Advisor*. This person alerts you to investment

opportunities, sends you regular updates and feedback on the performance of your

investments, helping you monitor, manage and grow your wealth in an ever fluid

investment climate.

63

RESEARCH METHODOLOGY

64

RESEARCH OBJECTIVE

Customer Satisfaction Survey- To find out the customer feedback of Kotak Mahindra

bank.

To find the awareness of products and services of bank among the customers.

To find customers satisfaction of the services offered by bank

To find satisfaction of the customers for new products

RESEARCH METHODOLOGY

Research type

Initially a exploratory research was undertaken to gain insights into the general nature of

the research problems and objectives, the possible decisions, alternatives and the relevant

variables that need to be considered while designing the questionnaires.

Along the lines of this exploratory research the questionnaire was designed. With the help

of the questionnaire the survey was conducted.

65

Data sources

Primary Data: - Primary data was obtained through the questionnaire designed for the

research.

Secondary Data: - It is obtained from the following:

I. Company website (www.kotakmahindra.com)

Research approach-

Survey Method was used to collect primary data. The primary data from the samples

under study were collected by using a questionnaire.

Research instrument

The main research instruments used for this study was-

Personally Administered Questionnaire:

The questionnaire was prepared with prior consultation of the academic as well as

organizational guide. The questionnaire includes both closed ended and open ended

questions.

The questionnaire aimed at finding out the present business scenario of Banking sector

and the problems related to the company. It also aimed at finding the preference of

market.

Semi-Structured Interview Of Clients:

The interview was conducted over the telephone which aimed at knowing the customers

choice of banking sevices for fulfilling their needs and finding out the reason for the

same.

66

Method of collecting the data – Data was collected by personal interactions with the

corporate and clients.

Data processing-

Measurement unit- data will be analyzed on the basis of feedback from all the units in the

universe. The collected data was depicted in the form of graphical charts in MS Excel.

Inferences were drawn and the suggestions were given.

The Survey Team:

A survey team of two people was assembled under the guidance of marketing executives

in Kotak Mahindra bank. Once assembled, the team had to meet for discussing and

clarifying survey procedures, especially the following:

Things that were to be covered in the survey according to the priorities of the

company.

How the survey was to be done

Data collection and reporting procedures

Meetings at proper intervals

Selection of Sample For The Survey:

The companies who are the direct customers of Kotak Mahindra bank limited were

selected randomly as the samples for the survey. The area covered during the survey was

Patna City.

67

DATA ANALYSIS

AND

INTERPRETATIO

NS

68

DATA ANALYSIS AND INTERPRETATION

Customers have account with Kotak Mahindra Bank, following result are as follows,68%

have a/c with Kotak Mahindra bank and 32% don’t have a/c.

YES 68% NO 32%

69

These three types of account consumers have, some have 32% saving a/c,28% have current a/c, and 40% have fixed deposits.

Saving account

Current account

FDs

SAVING ACCOUNT 32%

CURRENT ACCOUNT

28%

FIXED DEPOSITS

40%

70

Awareness about all the products and services offered by bank among customers are as follows:-

YES56%

NO 44%

71

Credit card used by customers of different banks is as follows:-

Kotak HDFC

ICICI SBI

KOTAK 35%

HDFC25%

ICICI20%

SBI 20%

72

Awareness about Kotak Mahindra Bank Credit Card among customers are given below, 68% shows yes, 325 shows

YES68%

NO32%

73

Kotak credit card used by consumers are as given below. Four types of credit cards used

which are as follows:-

Fortune Gold Card35%

Trump Gold Card25%

League Platinum Card 15%

Royals Signature Card25%

74

Services avail by the customers, offered by Kotak Mahindra bank are as follows

YES 67%

NO 33%

75

From the following sources consumers aware or about the Kotak Mahindra bank:-

T.V20%

Newspapers34%

Internet26%

Friends/colleagues15%

Magazines 15%

76

Overall experience of consumers regarding Kotak Mahindra bank are as follows

Excellent 34%

Very good 21%

Fair 22%

Poor 23%

77

Friend/relative deals with the Kotak Mahindra bank as follows:-

YES 48%

NO52%

78

Rated by the customers about the performance of banks are as follows-

Excellent Very Good Fair Poor

30%35% 25% 15%

79

Investment in Kotak securities limited, by the customers are given below:-

YES 62%

NO 38%

80

Performances of E-banking are as follows:-

Excellent Very Good Fair Poor

88%12% - -

81

E-Banking facilities are new to bank and fulfill banking transactions as follows,

customers says yes or no…61% and 39% respectively.

YES 61%

NO 39%

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MAJOR PROBLEMS FACED

There were many small big problems faced during the sales visits.

1. People are prejudiced about the myth that the private companies may run away

at any time taking there money, so these people are reluctant to take services

from private banks.

2. While collecting data for the need analyzer forms to evaluate a most

appropriate product for a customer, even the interested customers tend to hide

their actual information, such as annual income, loans, total assets, expected

expenditures on marriage/education etc.

3. There was an unexpectedly strange problem, faced in specially the labor class

and low middle class income group, these people are superstitious about the

life insurance concept, they believe that they will die soon if they opt for

insurance.

4. People who want borrowings from banks, then they will expect low rate of

interest and high rate of interest on deposits, which is not allow by banks, it’s a

great problem for banks.

5. Some people, even if they are not interested, they directly don’t say ‘NO’

rather they linger on and have a series of appointments till the time the seller

loses enthusiasm and becomes sure that the client is not going to give a sale.

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6. Some of the prospects don’t even listen to anything and straight away say

‘NO’, they don’t even give u a chance to say what one wants to, most of these

people were businessman who perhaps had less time to listen to sales pitch.

7. Some people don’t even understand the concept of different types of products

and services the worse is that they don’t even want to know about it.

8. People generally want to buy services from their known people like friends,

relatives etc. so even if they ask sales person, thousand questions about ifs and

buts of the policy, they prefer buying it from a known person.

9. The services like credit card facilities being an intangible service, it was really

difficult to make the concept of credit services because they never understand

yet in their lives.

10. People who have already bought insurance products have little knowledge

about their already purchased products.

11. The sales pitch if delivered to a group of friends together, has a more

probability of landing up in a mockery, as then everyone in group tries to out

smart the salesperson.

12. Many respondents are outside the confines of Delhi did not provide the

required information.

13. Sometimes information provided by respondent may influenced by personal

problems leading to biasness.

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14. The research had to be completed within a small span of time. This has limited

researcher from choosing a satisfactory number of sample.

15. The sample size collected for the research work is in sufficient.

16. As the research was confined to a limited field. So the finding can't be applied

universally.

17. Time Boundation: For a project having places Noida, Greater Noida,

Faridabad and Gurgaon, 8 weeks were not appropriate which is one of the

major limitation of the project.

18. Customers Attitude: Some customers were hesitating to give appropriate data.

So some of the data collected in this survey is assumed.

19. Some of the customers were very busy while our visit and ranked the customer

sat is faction data sheet in a hurry. It might be possible they have ranked wrong

in hurry.

20. The numbers of questionnaire filled are not enough to get the best results from

analyzing them. The reason for the same is due to ignorance of few customers.

We visited 70 OEM’s out of which only 49 gave us feedback.

21. While calculating percentage of customer satisfaction by weighted average

method, weights of attributes are assumed to be uniform.

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ISSUES AND CHALLENGES

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Issues and challenges for the company:

1. The company doesn’t spend much on marketing and it actually may be a

reason for not being a market leader among the private players.

2. The company has yet to make any significant presence in the rural sector as

the brand name is yet not famous in the rural India.

3. The company has a conservative approach and they believe in steady and very

safe progress , which actually results them to be in a position where they are

behind some of the more aggressive market players like ICICI

4. In India the rural market and middle class society still don’t have faith in

private insurers and their genuinity.

5. The rural India and middle class India still don’t have faith in private insurers.

The Kotak Mahindra company is competing with private companies which are spending

huge amounts on marketing, so to maintain a competitive edge with these companies in

terms of acquiring market shares would be a tough task.

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CONCLUSION

Kotak Mahindra bank Ltd works on the principle of suppliers market rather than

customers market which is diluting the relationship with the customers. Therefore

it is very important for them to adapt to customers market for sustaining good

relationship.

Kotak Mahindra bank Ltd products should be priced a bit low to capture more

market, its price should be competitive with the competitors pricing.

Kotak Mahindra bank Ltd should reduce the lead time (time between the

borrowings and lending) to improve the satisfaction level of the customer.

Supply chain Management should be made more effective.

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LEARNINGS

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LEARNINGS

1) Marketing research by itself does not arrive at marketing decisions, nor does it

guarantee that the organization will be successful in the marketing its products. However,

when conducted in a systematic, analytical, and objective manner, marketing research can

reduce the uncertainty in the decision-making process and increase the probability and

magnitude of success.

2) In Question construction we should keep these things in mind.

Keep the language simple.

Keep the questions short.

Keep the number of questions to a minimum.

3) Advantages of sampling over complete enumeration are cost, accuracy, timelessness

and amount of information.

4) For a research study to be accurate, its findings must be both reliable and valid.

[Reliability-Research means that the findings would be consistently the same if the study

were done over again

Validity-A valid measure is one that provides the information that it was intended to

provide.]

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5) When we conduct a customer feedback survey, what we ask the customers is

important. How, when, and how often we ask these questions are also important.

However, the most important thing about conducting a customer feedback survey is what

we do with their answers.

Apart from the above mentioned learning’s there were few more learning’s mention

below

I learned the practical working of marketing department.

I learned about the integrity of bank industry which are major players of bank

industry & why they are ahead the KOTAK BANK.

My project was customer interaction based that has given me lot of confidence to

interact with different kind of people.

During my project I learned to work in team.

During my eight weeks project I learned about products and services(

Borrowings, landings, credit cards, e-banking) of Kotak Bank and while

interacting with customers the various uses of these products.

Interaction with customers is the most crucial aspect for any business and with the

project like this has given me approach to interact with the customers.

Throughout my life I have heard people say, have patience, which I was unable to

learn throughout my life but during last two months I have learned to be patient

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QUESTIONNAIRE

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QUESTIONNAIRE

1. Do you have any account with Kotak Mahindra Bank?

Yes No

2. If yes which account you have?

Saving account

Current account

FDs

3. Are you aware about all the products and services offered by bank?

Yes No

4. Have you ever use credit card? If yes then which bank?

Kotak

HDFC

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ICICI

SBI

5. Are you aware about Kotak Mahindra Bank Credit Card?

Yes No

6. If yes which credit card you used?

Fortune Gold Card

Trump Gold Card

League Platinum Card

Royals Signature Card

7. Do you avail all the services offered by Kotak bank?

Yes No

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8. From where you know Kotak Mahindra bank?

T.V

Newspapers

Internet

Friends/colleagues

Magazines

9. How is your overall experience with the Kotak bank?

Excellent

Very good

Fair

Poor

10. Are you happy with the products/services offered by banks?

Yes No

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11. Any of your friend/relative deals with the Kotak Mahindra bank?

Yes No

12. How you rate bank performance towards consumers?

Excellent Very Good Fair Poor

13. Have you invest in Kotak securities limited?

Yes No

14. E-banking new facility of bank, how is it performed according to u?

Excellent Very Good Fair Poor

15. Is E-banking fulfill all your banking transactions?

Yes No

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6. Any grievances/suggestions want to write,if yes then write in space given

below

………………………………………………………………………………………………

………………………………………………………………………………………………

………………………………………………………………………………………………

……………………….

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BIBLIOGRAPHY

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BIBLIOGRAPHY

Books and journals Kothari C R, Research Methodology,New age Publication,2005

Aggrawal B.M., Business Statistics

Kotler Philip, Marketing Management

Websites

http://www.Kotakbank.org

http://www.moneycontrol.com

http://www.indiainfoline.com

http://www.wikipedia.com

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