Kotak Mahindra Banks

EXECUTIVE SUMMARY

This project was carried out for Kotak Mahindra bank. The objective of the

survey conducted was to know the current account of the customer and what facilities

get through the bank.

My summer project topic is “Alliances of Kotak Mahindra debit card

customer” and cum lead generation for potential current accounts”. And my job

timing is 11:00am to 5:00pm; this topic is assigned to three students.

In the alliances of Kotak Mahindra debit card customer we get the target of

30 potential retail shops and we have to convince the retailers to give 10%discount to

customers on Kotak debit card and in return name of the retail shop and Kotak will be

attached and displayed in all banks and ATMs of Kotak Mahindra bank through

candies, leaflets and pamphlets. The most interesting part of this topic is that this

project will be implemented by the bank.

In the cum lead generation for potential current account I feel marketing is

very hard work but not impossible We are three student in each group and my target

is convince ten leading business man about provide good facility from kotak

Mahindra bank . We are doing the work with enjoy. It’s not very difficult job because

only my job is get information about current account of his/her. It means we get the

information where your current account and what types of extra facility provide your

banks. And after that we convince that person and told him, our bank is giving four

extra facilities from your banks.

There are four extra facility provide kotak Mahindra bank

1.) Interest of current account.

2.) Home banking facility.

3.) Dedicate to relationship management.

4.) Cash credit / over drab facility.

We are not doing force open new current account in kotak. But my target is at

list convince ten leading business man for open current account in kotak.

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INTRODUCTION

Established in 1985, the Kotak Mahindra group has been one of India's

reputed financial organizations. It was previously known as the Kotak Mahindra

Finance Limited, a non-banking financial organization.

In February 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 created banking history since Kotak Mahindra Finance Ltd. is

the first non-banking finance company in India to convert itself in to a bank as Kotak

Mahindra Bank Ltd. The bank has a base of 8000+ employees.

Within a small span of 6 years, the bank has spread it wings in several sphere

of finances. Presently, spread in 82 cities in India, the bank caters to the needs of its

5.9 million customers spread throughout the length and breadth of country and even

abroad.

Kotak Mahindra Bank has over 217 branches spread across 126 locations in

the country offering both traditional banking products and investment advisory

services. The Bank has the products, the experience, the infrastructure and most

importantly the commitment to deliver pragmatic, end to- end solutions that really

work.

The Bank offers comprehensive business solutions that include Trade

Services, Cash Management Service and Credit facilities, keeping in mind the needs

of the business community.

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INDUSTRY PROFILE

1985

- The company was incorporated on 21st November, 1985 under the name

Kotak Capital Management Finance Ltd. The Company has been promoted by Mr.

Uday S Kotak, Mr. S.A.A Pinto and Kotak & Company. The Company obtained the

certificate of commencement of business on 11th February, 1986 and the Existing

promoters were joined by Mr. Harish Mahindra and Mr. Anand Mahindra. The

Company's name was changed on 8th April, 1986 to its present name Kotak Mahindra

Finance Ltd.

- The Company deals in Bill discounting, leasing and hire purchase, corporate

finance, management of fixed deposit mobilization, financing against securities,

money market operations, consumer finance, investment banking and clients' money

management.

1990

3, 08,770 No. of equity shares subscribed for by the promoters,

Directors, 3,41,230 No. of equity shares allotted as rights as on 28.3.89.

19,50,000 shares issued as bonus (6,50,000 shares in prop. 1:1 as on 29.7.89 and

13,00,000 shares in prop. 1:1 as on 27.2.91).

1991

An application was made to SEBI for approval for setting up a Mutual Fund

trust and an Asset Management Company. The newly set up Corporate Advisory

Services Group received several mandates for advice on mergers and acquisitions and

re-structuring.

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The Company's newly established Foreign Exchange Risk Management

Service carters to the vast potential demand for price risk management.

The Company established itself as a major leasing and hire-purchase company

and as a source of finance for purchasers of automobiles.

1994

The Company entered into a Memorandum of Understanding with KB

Currency Advisors Inc. USA to market their Foreign Exchange Fund Management

program.

183,65,500 Rights equity shares issued in prop. 1:1. 11,800 No. of equity

shares forfeited. The Company has received

1995

The Company issued 4,00,000 - 17% Secured Redeemable Non-convertible

Debenture of Rs 2500 each including 96000 - 16% NCDs reserved for NRIs/URB

(only 9510 taken-up). Unsubscribed portion of 90 debentures issued to the public.

These are redeemable at par on 7.3.2001 with an option for early redemption up to a

maximum of 5% of the issue amount every year.

The Company entered into a joint venture agreement with Ford Credit

International Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA. It was proposed

to finance all non Ford Passenger cars.

1997

In recognition of the Company's prudent funds management, CRISIL has

assigned a rating of AA+ to the Company's public issue of Non-Convertible

Debentures and P1+ for all short term borrowings up to Rs.35000 lakhs.

Kotak Mahindra Finance Ltd, has decided to venture into health insurance

business.

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Kotak Mahindra Finance has launched a new consumer finance Product

called Kotak Mahindra K-Value.

Hamko is a 100 per cent subsidiary of KMFL and investment in it was

structured to avoid limitations of Section 372 under the Companies Act.

The company has diversified into various activities for which it has set up

subsidiaries including broking, capital market activities, auto finance, etc.

1998

Kotak Mahindra Asset Management Company Limited (KMAMCL)

launched its mutual fund schemes in December.

The Company it would launch its mutual fund with two schemes KGilt Unit

Scheme and K30 Unit Scheme.

Kotak Mahindra Finance is a joint venture with Goldman Sachs.

2000

Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation of the US have

decided to call off their joint venture for entering the general insurance business in

India.

The Company has decided to set up a venture capital fund with an initial

corpus of Rs. 100 core.

KMFL has set up a new asset reconstruction division to offer recovery

management services to players in the financial services industry.

The Company Issue of 91,82,500 No. of Equity Shares of Rs. 10/- each for

cash at a premium of Rs. 90/- per share aggregating Rs. 91,82,50,000 to the Equity

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Shareholders of the Company on Rights basis in the ratio of one equity share for

every our equity shares held on 15th February.

Mr. K.K. Sheth has resigned effective from May 8. Kotak Securities an

affiliate of Kotak Mahindra Finance Ltd., has launched electronic broking services for

retail investors.

Kotak Mahindra Finance is in talks with foreign insurers insurers for a joint

venture in the life insurance business.

The Company has proposed to start-up capital of Rs 150 crore in its life

insurance joint venture with Old Mutual, the UK based financial services group.

The Company proposes to make the necessary applications to the RBI and the

Insurance Regulatory and Development Authority for entering the life insurance

business.

OM Kotak Mahindra Life Insurance Company, the recently formed joint

venture company of Kotak Mahindra Finance and Old Mutual Plc has filed its

application for approval of life insurance license on 1st September.

Kotak Mahindra Finance Ltd has been assigned Ind AAA rating (indicating

highest credit quality) for its Rs.510 million medium term borrowing programmer.

Fitch India has assigned a rating of Ind AAA to the Rs 51-crore medium term

borrowing program of Kotak Mahindra Finance Ltd for high credit quality and

negligible risk factor.

2001

The Company recommended a swap ratio of 25 shares of KMFL for every

share of Pannier Trading which has a 75 per cent equity stake in Kotak Securities.

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The Bharath Petroleum Corporation Ltd (BPCL) has decided to part ways

with Kotak Mahindra, one of the leading domestic financial services company, in its

convenient store venture In & Out.

2003

Madison Communications has won the Rs.30cr Kotak Mahindra's media

AOR account.

The proposal of changing the name from 'Kotak Mahindra Finance Ltd' to

'Kotak Mahindra Bank Ltd' and the proposal to change the Authorized capital from

100,00,00,000 divided into 10,00,00,000 equity shares of Rs.10 each has been

approved by the company shareholders.

RBI has granted license to Kotak Mahindra Finance Ltd to embark on its

banking business.

O & M has got the creative account of Kotak Mahindra Bank, and has said

to be working professionally.

Kotak Mahindra Bank has received a lot of interest from portfolio

investors, private equity investors and potential.

Kotak Mahindra Bank has entered into an ATM sharing agreement with

UTI Bank, which would allow KMB's customer free access to around 800 ATM's.

Kotak Mahindra Bank has started its operations in New Delhi b

inaugurating a branch Connaught place office. Dr.Shankar Acharya has been

appointed as the Additional Director to the board of the bank.

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Company profile

Chairman K.M.Gherda

Executive vice chairman& Uday Kotak

Managing director

Chairman of boards of directors Shankar Acharya

Registered office Nariman Bhawan

Mumbai

Established In February 2003.

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Corporate identity:

The symbol of the infinite Ka reflects our global Indian personality. The Ka is

uniquely Indian while its curve forms the infinity sign which is universal. One of the

basis tenets of economics is that man’s needs are unlimited. The infinite Ka

symbolizes that we have infinite number of way’s to meet those needs.

The composition of the Board of Directors of the Bank is governed by the

Banking Regulation Act, 1949 and Clause 49 of the Listing Agreement. The Board of

Directors comprises a combination of executive and non-executive Directors.

The Board mix provides a combination of professionalism, knowledge and

experience required in the banking industry. The responsibility of the Board inter alia

includes formulation of policies, taking new initiatives, performance review,

monitoring of plans, pursuing of policies and procedures.

Kotak Mahindra Bank amongst Hewitt’s ‘Top 25 Best Employers’

Ranks 1st amongst the BFSI segment, second time in a row-

Kotak Mahindra Bank, one of India’s leading private banks has bagged the

Hewitt Best Employer’s in India award for the second time in a row. The Award was

received by Mr. Subhro Bhaduri Executive Vice President-HR, Kotak Mahindra

Bank.

The Hewitt Best Employer awardees have been selected by an independent

jury comprising of eminent members from the Industry and academic world. The

2009 study also introduced new research initiatives to evaluate how new dimensions

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such as personal values, CSR, and workplace diversity impact human capital

management for business growth and witnessed participation from over 230

organizations. The views of over 800,000 employees have been represented by over

46,000 employees across India, making this one of the largest employee research

studies conducted in the country.

FUTURE OUTLOOK

Your Bank expects to expand its banking activities over the next one year by

setting up additional branches in major cities around the country. With the expansion

of the branch network, your Bank expects to broad base the product offering with a

view to deepening relationships with customers.

The commercial vehicle market has seen a robust growth over the past few

months and your Bank expects to increase its market share in the financing business.

With the development of the national highway projects, an increase is also expected

in the construction equipment financing business.

Your Bank proposes to expand its geographical reach in the personal loans

business. It has now put in place the requisite infrastructure, systems and processes

for financing housing loans and this business is expected to grow during the current

year.

Your Bank is in the process of setting up a comprehensive cash management

system offering customer services in the collections and payments area. It expects to

play a more active role in financing small and medium enterprises, largely through

capturing supply chain businesses.

The key challenge over the next year would be to establish the required branch

banking infrastructure and leverage on the large existing customer base to develop a

robust retail banking base.

Kotak Mahindra Bank Limited has informed that the Bank's equity shares will be

delisted from The Stock Exchange, Ahmedabad with effect from January 20, 2004.

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Kotak Mahindra, one of leading financial services companies, The company also

unveiled its new corporate identity on the occasion. The bank will open its door to

retail and corporate clients on March 31. It also plans to invest Rs. 120 crores over

three years for infrastructure, technology and personnel.

The promoters' stake in the bank, which is at 62 per cent at present, will be brought

down to 49 per cent according to the Reserve Bank of India stipulation. The bank will

be the parent holding company with five subsidiaries under it. The total net worth of

the group is Rs. 1,400 crores. At present, the net NPAs is at 0.01 per cent.

Backed by 20 years of expertise in the financial services business, Kotak will offer

complete practical financial solutions from retail finance, stock broking, mutual

funds, life insurance to investment banking.

From the first day of operations, the bank customers will have access to over 800

ATMs free of cost, through a sharing agreement with UTI Bank. Additionally, the

customers will have access to the entire VISA network of 4,500 ATMs in India and

eight lakh ATMs worldwide, at a nominal cost and will get Visa debit cards, accepted

in more than 56,000 establishments across India and over ten million establishments

worldwide.

The bank plans to grow in its existing line of businesses of commercial vehicles,

personal loans, trade finance and capital market. It also plans to enter into housing

finance in 2003-04. The new bank is planning to establish 75 branches in the next

three years and 25 branches by March 2004. The bank is targeting high net worth

clients, mainly in Mumbai and Delhi and subsequently in other cities. It will

aggressively sell savings accounts and current accounts to lower their cost of funds.

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The bank will integrate all financial solutions under a single roof and also act as an

outlet for the products and services provided by the subsidiary companies. The bank

and its subsidiaries have a network spread around 50 locations in India and its client

base of over five lakh customers.

PRODUCT PROFILE

The product services of the Kotak Mahindra group comprise the following areas.

Bank

Kotak Realty Fund

Credit Cards

Kotak Private Equity

Life Insurance

International Business

Mutual Fund

Investment Banking

Car Finance

Institutional Equities

Securities

Product services of the Kotak Mahindra Bank Limited encompass a wide arena. They

can be broadly put under the heads of Banking and Savings, Corporate and

Institutional, Investments and Insurance and Loans and Borrowings.

These main service provision areas again have a number of sub-areas under them.

Banking and Savings

Banking and Accounts

Convenience Banking

Credit Cards

NRI Services

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Demat

Deposits

Corporate and Institutional

Corporate Finance

Treasury

Investment Banking

Institutional Equities

Investments and Insurance

Life Insurance

Estate Planning

Mutual Funds

Gold

Share Trading

Structured Products

Loans and Borrowings

Car Finance

Commercial Loans

Home Loans

Personal Loans

Loans Against Property

Kotak Mahindra Bank Limited also sponsors Kotak Mahindra Mutual fund. Kotak

Star Kid is the new offer from Kotak Mahindra Mutual fund. It is a unique product

which is essentially a mutual fund along with insurance coverage available in a single

package.

1. Gold Debit Card

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Gold Debit Card, a 'fully loaded' Visa Debit Card with unlimited free access to all the

VISA ATMs in India and worldwide. The card also has higher purchase and cash

withdrawal limits –Rs.1, 75,000 per day purchase limits and Rs.1, 75,000 cash

withdrawal limit.

In addition to the above, the Kotak Gold Debit card also allows for the complete

waiver of the fuel surcharge across all petrol pumps anywhere in India, irrespective of

the amount of the transaction. Our discerning customer also enjoys Gold lifestyle

benefits (offers on fine dining,

travel, etc.)

2. ACE ACCOUNT

Ace Deposit is a unique product from Kotak Mahindra Bank Limited. It combines the

prospective of lucrative returns from an equity fund along with the stability and safety

of a Fixed Deposit. Here the monthly interest accruing to one's term deposit is

channelized for investment in mutual funds as per a systematic investment plan. The

safety of the principal amount on the fixed deposit is guaranteed. The interest income

becomes linked to the prospect of market-linked returns.

3. CAR LOANS

Kotak Mahindra Bank Limited Car Loans come from Kotak Mahindra Prime Limited

a subsidiary unit of Kotak Mahindra Bank Ltd. The company provides finance

options for and multi-utility vehicles including cars. Kotak Mahindra Prime Limited

provides car dealers with inventory funding. It is also the preferred financier of a

number of car manufactures in the country.

4. HOME LOANS

Kotak Mahindra Bank Limited Home Loans comes with a host of attractive features.

Some of the salient features are described below.

Wide array of offerings

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Absence of hidden charges

Pre-approved sanctions

Life insurance options

Personal accident insurance, which is free

Vanilla Home Loan, Fixed Deposit linked Home Loans and Kotak Flexi Home Loan

are some home loan offerings from Kotak Mahindra Bank Limited.

5. PERSONAL LOANS

Loans Against Property is a unique product from Kotak Mahindra. This loan can be

used for issues like debt consolidation, educational finance, emergencies and the like.

Some key features of this loan are given below.

Heightened loan eligibility for businesspersons

Loans are available against both commercial and residential properties

Personal accident insurance comes free with the loan

Loan range is from Rs.10 lakh to Rs.3 crore

6. SAVINGS ACCOUNT

It provides quick & convenient banking transactions along with options for your

money to earn high returns. The savings account goes beyond the traditional role of

savings, to provide you a range of services from funds transfer options to online

payments of bills to attractive returns earned through a comprehensive suite of

investment options.

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Features & Benefits:

1. Free access at all domestic and international VISA ATMs You 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.

2. Multiple access channels Access your account anytime through your land line,

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.

3. Financial payments facilitated through the savings account Use the free Kotak

Payment Gateway to make online payments for your utility bills, credit cards,

online trading of shares or even online shopping. All this at the click of a

mouse!

4. Quick and easy funds transfer funds easily and with speed, to a beneficiary

account at another bank. You can avail of this facility by walking into any of

our branches or by simple logging on to Net Banking. You also get a free

multi-city cheque book so that money from your account is transferred to the

beneficiary's account at any of our branch locations, in the fastest possible

time.

5. Free banking transactions you can issue demand drafts or send cheques for

collection anywhere in the country for no extra charge.

6. ActivMoney Earn better returns in your savings account, with our

ActivMoney 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.

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7. Free investment account Use the Net Banking facility to purchase/redeem

mutual funds online while directly debiting / crediting your bank account.

Further, you get a free investment account for tracking your investments with

the Bank. This account provides you a consolidated view of all your mutual

fund investments across schemes with updated returns status, latest NAV

information and research reports.

8. Dedicated relationship manager you get a one point contact for all your

banking related queries and transactions. Your relationship manager is

qualified to help you with financial planning and sound investment decisions

in order to meet your financial goals.

9. Family Savings Account the Kotak Ace Savings package allows you to extend

the Kotak banking experience to three of your family members. Under this

scheme you are eligible to open 3 Edge Savings Account with NMC waiver

on all 3 accounts, so long as the AQB of your ACE account is maintained.

10. Online trading account Link your savings account to your online trading with

Kotak Securities to enable transfer of funds from your bank account to your

account with Kotak Securities and vice versa.

11. Kotak Mahindra Bank’s Pro Savings Account is an account packed with

powerful features to provide you a superior banking experience at a very

comfortable balance requirement. We provide you a relationship manager who

will specifically take care of your banking and investment needs.

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CONCEPT OF PROJECT

My summer project topic is “Alliances of Kotak Mahindra debit card customer”. This

topic is assigned to three students. In this project we get the target of 30 potential

retail shops and we have to convince the retailers to give 10%discount to customers

on Kotak debit card and in return name of the retail shop and Kotak will be attached

and displayed in all banks and ATMs of Kotak Mahindra bank through candies,

leaflets and pamphlets. The most interesting part of this topic is that this project will

be implemented by the bank.

THE RETAIL SHOPS IN WHICH I MADE THE TIE-UPS WITH KOTAK ARE AS FOLLOWS:

WEEK 1: KHAITAN MARKET {IWENT TO THIS MARKET WHERE POTENTIAL RETAILERS ARE THERE .THIS MARKET IS MAINLY KNOWN FOR SAREES & SUITS}

*NAME OF THE SHOP: JEEVAN’S (SIYARAM’SFASHION AVENUE)OWNER’S NAME: MANOJ AGARWAL (10% DISCOUNT)

*NAME OF THE SHOP: SAVERA (A BOMBAY DYING SHOW ROOM)OWNER’S NAME: SANJAY AGARWAL (10%DISCOUNT)

*NAME OF THE SHOP: SAAS-BAHUOWNER’S NAME: AJAY KUMAR MORE (10%DISCOUNT)

*NAME OF THE SHOP: GRIH SHOBHAOWNER”S NAME: PANKAJ KUMAR (10%DISCOUNT)

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WEEK 2: DAKBUNGLOW ROAD {THIS PLACE IS THE HEART OF THE PATNA WHERE BIG & BRANDED SHOPS ARE THERE.HERE MAINLY CROWD OF THE HIGH CLASS PEOPLE}

*NAME OF THE SHOP: SWADESHIOWNER’S NAME: SANJIV RASTOGI (10%DISCOUNT)

*NAME OF THE SHOP: BHARAT MILAPOWNER’S NAME: MD.SALAUDDIN (10%DISCOUNT)

*NAME OF THE SHOP: KARISHMA LIFE STYLEOWNER’S NAME: AJAY MANSAROVAR (10%DISCOUNT)

WEEK 3: DAKBUNGLOW ROAD

*NAME OF THE SHOP: NAYANIOWNER’S NAME: AJAY KUMAR GUPTA (10%DISCOUNT ONLY ON SUIT PEASES)

*NAME OF THE SHOP: HI FASHIONOWNER’S NAME: BRAJESH KUMAR SINHA (10%DISCOUNT)

*NAME OF THE SHOP: MOTA BHAIOWNER’S NAME: SANWAR AGARWAL (10%DISCOUNT)

NAME OF THE SHOP: RAJ RATAN JEWELLERSOWNER’S NAME: VISHAL KESHARI (5%DISCOUNT)

WEEK 4: DAKBUNGLOW ROAD AND BORING ROAD

NAME OF THE SHOP: DOMASHAH MOHANLAL JEWELLERSOWNER’S NAME: SHASHANK KEHARI (10%DISCOUNT ONLY ON MAKING CHARGE)

NAME OF THE SHOP: EASY WEAROWNER’S NAME: RAJESH KUMAR RASTOGI (10%DISCOUNT ONLY ON READYMADE GARMENTS)

NAME OF THE SHOP: INTERNATIONAL LEATHER WORKOWNER’S NAME: FAISAL

WEEK 5: BORING ROAD {THIS IS ALSO A WELL KNOWN AREA OF THE PATNA. HERE I FOUND VARIOUS TYPES OF RETAILERS ARE THERE AND ALSO KNOWN TO EVERYONE IN PATNA}

*NAME OF THE SHOP: QWEEN’SOWNER’S NAME: ALOK BHOJGARHIA (10%DISCOUNT)

NAME OF THE SHOP: RADHA

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OWNER’S NAME: KANODIA (7%DISCOUNT ON BRANDED AND 10%DISCOUNT ON NON BRANDED)

NAME OF THE SHOP: MADHURIOWNER’S NAME: VIJAY AGARWAL (10%DISCOUNT)

NAME OF THE SHOP: BABA AND BABYOWNER’S NAME: NILESH (10%DISCOUNT)

TIE-UP With Indian airlines

Kotak Mahindra Bank is proud to announce the launch of its Payment Gateway tie up

with Indian Airlines. Indian Airlines, one of the largest airlines in the country, covers

more than 75 destinations within and outside India. With its fully owned subsidiary

Alliance Air, Indian Airlines has a fleet of more than 70 aircrafts. Indian Airlines has

enabled e-Ticketing on its website www.indian-airlines.in in addition to issuance of

tickets across the counter.

Our tie up with Indian Airlines enables the customers of Kotak Mahindra Bank to pay

for tickets booked on Indian Airlines website using Kotak Mahindra Bank Net

Banking user ID and password. Kotak Mahindra Bank is the first private sector bank

to launch this service on Indian Airlines website. The service is available free of cost

to all customers registered for Kotak Bank Payment Gateway service.

Payment Gateway access not only enables purchase on Indian Airlines website but

also enables a customer to transfer money to Kotak Securities account, make

purchases on more than 3000 merchants websites, pay VISA credit card bills online,

transfer money online to any VISA debit card within the country, pay utility bills,

make donations and pay for subscriptions online across more than 60 billions.

The company will ally or forge informal ties with companies in the US, Europe,

Australia and South Africa. The first partner may be from Japan declining to name the

company or provide a timeframe.

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“We have to do a lot more cross-border, so we are tying up with various partners. We

have to have a footprint like, say, Goldman or UBS AG. To be able to match that we

have to have alliances. The Mumbai-based group ended its alliance with Goldman in

2006.

Kotak Mahindra, which is the fourth-ranked adviser on mergers in India last year, has

slipped to 18th position in 2008, behind firms including the New York-based Morgan

Stanley and the Tokyo-based Nomura Holdings. Kotak Mahindra advised Hutchison

Essar last year on its sale to Vodafone Group, the biggest transaction in India.

NTT DoCoMo, Japan’s biggest mobile-phone operator, agreed to pay $2.7 billion for

a 26 per cent stake in Tata Teleservices to expand into the world’s fastest-growing

major wireless market.

Earlier this month, Daiichi Sankyo, Japan’s third-biggest drugmaker, completed its

purchase of a controlling-stake in Ranbaxy Laboratories to tap the faster-growing

market for generic medicines.Nayar expects more Japanese companies to buy assets

in India.

“They need India to grow, they did that in South Korea. “They have the money and

their currency is strong.’’

The value of mergers and acquisitions in India has fallen to $48 billion this year from

a record $67 billion in 2007, according to Bloomberg data.

ALLIANCES FOR KOTAK MAHINDARA BANK

Kotak Mahindra Bank is planning to sign up new overseas alliances with financial

firms as the global credit crisis forces local businesses to sell stakes overseas. “Indian

promoters will sell out,” managing director, Kotak Mahindra Capital Company. They

will realize “it is a struggle to continue running the company in a down-environment

and there will be greater motivation to sell.’’

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OBJECTIVES OF PROJECTS

To gather information about performance of bank (or banking services in

Patna)

To identify the satisfaction level of customer towards banking services.

To perceive the customers potential level of expectation towards banking

services both present and future.

IN THE ALLIANCES OF KOTAK MAHINDRA DEBIT CARD

CUSTOMER:

In this project I get the target of 30 potential retail shops and I have to

convince the retailers to give the 10% discount to customers on kotak debit

card in return name of retail shops kotak will attached and displayed in bank

of kotak Mahindra bank through pamphlets, leaflets and candies.

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TRAINING DEFINED

It is a learning process that involves the acquisition of knowledge, sharpening

of skills, concepts, rules, or changing of attitudes and behaviors to enhance the

performance of employees.

Training is activity leading to skilled behavior.

It’s not what you want in life, but it’s knowing how to reach it.

It’s not where you want to go, but it’s knowing how to get there.

It’s not how high you want to rise, but it’s knowing how to take off.

It may not be quite the outcome you were aiming for, but it will be an

outcome.

It’s not what you dream of doing, but it’s having the knowledge to do it.

It's not a set of goals, but it’s more like a vision.

It’s not the goal you set, but it’s what you need to achieve it.

Training is about knowing where you stand (no matter how good or bad the

current situation looks) at present, and where you will be after some point of

time.Training is about the acquisition of knowledge, skills, and abilities (KSA)

through professional development.

ROLE OF TRAINING:

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Business Environment

Changes and Challenges

Importance of Training:

• Optimum Utilization of Human Resources – Training and Development

helps in optimizing the utilization of human resource that further helps the employee

to achieve the organizational goals as well as their individual goals.

• Development of Human Resources – Training and Development helps to

provide an opportunity and broad structure for the development of human resources’

technical and behavioral skills in an organization. It also helps the employees in

attaining personal growth.

• Development of skills of employees – Training and Development helps in

increasing the job knowledge and skills of employees at each level. It helps to expand

the horizons of human intellect and an overall personality of the employees.

• Productivity – Training and Development helps in increasing the

productivity of the employees that helps the organization further to achieve its long-

term goal.

• Team spirit – Training and Development helps in inculcating the sense of

team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal

to learn within the employees.

• Organization Culture – Training and Development helps to develop and

improve the organizational health culture and effectiveness. It helps in creating the

learning culture within the organization.

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Business Excellence

Learning and Implementation

• Organization Climate – Training and Development helps building the

positive perception and feeling about the organization. The employees get these

feelings from leaders, subordinates, and peers.

• Quality – Training and Development helps in improving upon the quality of

work and work-life.

• Healthy work-environment – Training and Development helps in creating

the healthy working environment. It helps to build good employee, relationship so

that individual goals aligns with organizational goal.

• Health and Safety – Training and Development helps in improving the health

and safety of the organization thus preventing obsolescence.

• Morale – Training and Development helps in improving the morale of the

work force.

• Image – Training and Development helps in creating a better corporate

image.

• Profitability – Training and Development leads to improved profitability and

more positive attitudes towards profit orientation.

• Training and Development aids in organizational development i.e.

Organization gets more effective decision making and problem solving. It helps in

understanding and carrying out organizational policies

• Training and Development helps in developing leadership skills, motivation,

loyalty, better attitudes, and other aspects that successful workers and managers

usually display.

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Importance of Training Objectives:

Training objective is one of the most important parts of training program.

While some people think of training objective as a waste of valuable time. The

counterargument here is that resources are always limited and the training objectives

actually lead the design of training. It provides the clear guidelines and develops the

training program in less time because objectives focus specifically on needs. It helps

in adhering to a plan. Training objectives tell the trainee that what is expected out of

him at the end of the training program. Training objectives are of great significance

from a number of stakeholder perspectives,

1. Trainer 2. Trainee 3. Designer 4. Evaluator

Trainer – The training objective is also beneficial to trainer because it helps the trainer to measure the progress of trainees and make the required adjustments. Also, trainer comes in a position to establish a relationship between objectives and particular segments of training.

26

Trainee – The training objective is beneficial to the trainee because it helps

in reducing the anxiety of the trainee up to some extent. Not knowing anything or

going to a place which is unknown creates anxiety that can negatively affect learning.

Therefore, it is important to keep the participants aware of the happenings, rather than

keeping it surprise.

Secondly, it helps in increase in concentration, which is the crucial factor to

make the training successful. The objectives create an image of the training program

in trainee’s mind that actually helps in gaining attention. Thirdly, if the goal is set to

be challenging and motivating, then the likelihood of achieving those goals is much

higher than the situation in which no goal is set. Therefore, training objectives helps

in increasing the probability that the participants will be successful in training.

Designer – The training objective is beneficial to the training designer

because if the designer is aware what is to be achieved in the end then he’ll buy the

training package according to that only. The training designer would then look for the

training methods, training equipments, and training content accordingly to achieve

Beneficiaries of Training Objectives

Trainer

Designer

Trainee

Evaluator

27

those objectives. Furthermore, planning always helps in dealing effectively in an

unexpected situation. Consider an example; the objective of one training program is

to deal effectively with customers to increase the sales. Since the objective is known,

the designer will design a training program that will include ways to improve the

interpersonal skills, such as verbal and non verbal language, dealing in unexpected

situation i.e. when there is a defect in a product or when a customer is angry.

Therefore, without any guidance, the training may not be designed

appropriately.

Evaluator – It becomes easy for the training evaluator to measure the

progress of the trainees because the objectives define the expected performance of

trainees. Training objective is an important to tool to judge the performance of

participants.

Types of Training:

Basically there are two types of training

1. On the Job Training (OJT)2. Off the Job Training

ON THE JOB TRAINING:

Managers have two powerful ways of improving the performance and productivity of

their subordinates, which are counseling and on the job training.

Counseling is the process of helping a subordinate define and resolve personal

problems that effect performance or in order to develop a good attitude to work.

On the job training is the process of explaining, demonstrating and the structured

supervision of specific skills or particular tasks. It is similar to the teaching process.

On the job training is often referred to as OJT.

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These are highly effective in three situations, which are:

1. Resolving people problems

All managers are faced with problem people from time to time. Counseling

and training are always the first considerations in these cases but they do not

always result in success and sometimes more radical action is required. This is

covered in the Problem People and Positive Discipline modules.

2. Maintaining group standards

The management of people both as individuals and groups is a dynamic

process as nothing remains static ? problems are always arising. A good

manager must be aware of this and be constantly ready to use counseling and

training to maintain standards.

3. To achieve continuous improvement

The best way to avoid problems is to keep ahead of them by being proactive.

You must have a plan for each individual in your group and for the group as a

whole. In particular new and inexperienced group members need special

treatment so that they can meet required levels of performance.

Counseling and training share many of the same skills and in many cases they

are used together to achieve your results.

The following are typical signs of change to look for then you must decide to

initiate the counseling or training (or both) initiatives.

TYPICAL SIGNS OF NEED FOR HELP

Avoids difficult work

No co-operation

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Lack of interest

No initiative

Complaining

Making mistakes

Avoiding contact

No communication

Depressed

Poor quality

Argumentative

Unsafe working

Poor productivity

Delegating to others

Laziness

Absenteeism

Irritability

Blaming others

The most important sign to look for is a change in behavior or performance. For

example, if an employee who has always been well behaved, with a pleasant

disposition suddenly becomes aggressive you can bet on him having some problem

that needs counseling.

Counseling

On-the-job counseling is a process of talking about things that affect the performance

of the work. It involves sitting down in some quiet place and getting job problems out

in the open without hurting each other.

It's all about talking, listening, and trying to understand the other person's point of

view. All supervisors are counselors whether they realize it or not. Sometimes a long

heart-to-heart talk is needed to clear the air or a quick exchange will clear up a

misunderstanding. Perhaps the supervisor does most of the talking; the next time it

may be the other way around. However, counseling is more than a casual discussion

resulting from an accidental encounter.

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Counseling is a very effective management tool to increase productivity by solving

problems and strengthening or repairing working relationships. Other kinds of

problems of a personal or psychological nature should be avoided and left to

professionals in that field.

On the Job training

Training is almost a natural human instinct. We all train our children without even

thinking about it but when we have the job of training someone at work we find

problems.

On the job training is often a one to one situation, usually involving the supervisor

and one of the group. The supervisor uses the actual work as the training location, and

works with the trainee to improve skills or introduce new tasks. This process is also

referred to as coaching.

Advantages of on the job training

1. It is cost effective

2. It strengthens relationship within the group

3. Feedback and support is easy

nearly all the problems associated with on the job training are very simple to

overcome. Like so many other parts of our work they require us to take a more

systematic approach to the situation.

Most workers usually take pride in learning a new skill. The new skills gained are to

our mutual benefit as it's good for the worker to improve his future employment value

and for us to have new capability in our groups. In addition, by making learning

possible, you earn their respect and build enduring relationships.

The supervisor is frequently the only person in the organization that teaches the basic

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knowledge and the many key skills that the group needs to learn. On-the-job training

should never stop.

OFF THE JOB TRAINING:

Advantages :

If the course has been designed by staff member it can be delivered to fit in with the

employee's regime and workload, so it does not affect productivity.

Can work out extremely cost effective as no hotel fees, trainer fees or extra equipment

are incurred, all is provided in-house and in works time.

Depending on the course, employees are ample to meet other employees perhaps from

other branches or departments they would not have normally met.

As employees are familiar with the trainer and the environment they are being taught

in, this would help them to feel more relaxed.

The person developing the course would be able to gauge the level of ability and

content for the course to be taught.

The course would be more relevant and adaptable to the needs of the company

Disadvantages:

Extra Audio or Visual aids to aid learning (whiteboard, Overhead projector, projector,

video etc) might not be available and so this would mean courses might be basic or

substandard.

As a member of staff may be delivering the course rather than an experienced trainer,

the employees might not take the course seriously and this might hamper learning.

Employee rivalry and banter may mean that employees bypass the course and

undervalue its content as they think they know better or have better ways of doing it.

Depending on the teaching skills of the employee training the members of staff, they

might not be able to gauge the existing abilities, knowledge, skill or need for training,

and so employees attending the course might already know what is being taught

already.

If the need for training has not accurately been gauged this would result in the work

32

space being wasted where it could have been utilized more productively.

If resources are limited, equipment available may be different than that used by the

employees and this would be counter productive.

Employees may feel devalued if they are sent on an internal training course to

improve skills rather than learn new ones and so courses have to be selected and

promoted to the employees very carefully and sensitively.

Needs of Training and to measure its effectiveness:

The identification of training needs is the first step in a uniform method of

instructional design.

1. Types of Needs Analyses

Many needs assessments are available for use in different employment

contexts. Sources that can help you determine which needs analysis is appropriate

for your situation are described below.

1. Context Analysis. An analysis of the business needs or other

reasons the training is desired. The important questions being answered by

this analysis are who decided that training should be conducted, why a

training program is seen as the recommended solution to a business

problem, what the history of the organization has been with regard to

employee training and other management interventions.

2. User Analysis. Analysis dealing with potential participants

and instructors involved in the process. The important questions being

answered by this analysis are who will receive the training and their level

of existing knowledge on the subject, what is their learning style, and who

will conduct the training.

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3. Work analysis. Analysis of the tasks being performed. This

is an analysis of the job and the requirements for performing the work.

Also known as a task analysis or job analysis, this analysis seeks to

specify the main duties and skill level required. This helps ensure that the

training which is developed will include relevant links to the content of the

job.

4. Content Analysis. Analysis of documents, laws, procedures

used on the job. This analysis answers questions about what knowledge or

information is used on this job. This information comes from manuals,

documents, or regulations. It is important that the content of the training

does not conflict or contradict job requirements. An experienced worker

can assist (as a subject matter expert) in determining the appropriate

content.

5. Training Suitability Analysis. Analysis of whether training

is the desired solution. Training is one of several solutions to employment

problems. However, it may not always be the best solution. It is important

to determine if training will be effective in its usage.

6. Cost-Benefit Analysis. Analysis of the return on investment

(ROI) of training. Effective training results in a return of value to the

organization that is greater than the initial investment to produce or

administer the training.

2. Techniques

Several basic Needs Assessment techniques include:

Direct Observation

Questionnaires

Consultation with persons in key positions, and/or with specific

knowledge

34

Review of Relevant Literature

Interviews

Focus Groups

Tests

Records & Report studies

Work Samples

3. Checklist for Training Needs Analysis

It is helpful to have an organized method for choosing the right test for

your needs. A checklist can help you in this process. Your checklist should

summarize the kinds of information discussed above. For example, is the test

valid for your intended purpose? Is it reliable and fair? Is it cost-effective? Is the

instrument likely to be viewed as fair and valid by the test takers? Also consider

the ease or difficulty of administration, scoring, and interpretation given available

resources. A sample checklist that you may find useful appears on the following

page. Completing a checklist for each test you are considering will assist you in

comparing them more easily.

Training Evaluation:

The process of examining a training program is called training evaluation.

Training evaluation checks whether training has had the desired effect. Training

evaluation ensures that whether candidates are able to implement their learning in

their respective workplaces, or to the regular work routines.

Purposes of Training Evaluation:

The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the

objectives and linking it to learning outcomes.

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Research: It helps in ascertaining the relationship between acquired

knowledge, transfer of knowledge at the work place, and training.

Control: It helps in controlling the training program because if the training is

not effective, then it can be dealt with accordingly.

Power games: At times, the top management (higher authoritative employee)

uses the evaluative data to manipulate it for their own benefits.

Intervention: It helps in determining that whether the actual outcomes are

aligned with the expected outcomes.

Process of Training Evaluation

Before Training: The learner’s skills and knowledge are assessed before the training

program. During the start of training, candidates generally perceive it as a waste of

resources because at most of the times candidates are unaware of the objectives and

learning outcomes of the program. Once aware, they are asked to give their opinions

on the methods used and whether those methods confirm to the candidates

preferences and learning style.

During Training: It is the phase at which instruction is started. This phase usually

consist of short tests at regular intervals

After Training: It is the phase when learner’s skills and knowledge are assessed

again to measure the effectiveness of the training. This phase is designed to determine

whether training has had the desired effect at individual department and

organizational levels.

training has had the desired effect at individual department and organizational levels.

There are various evaluation techniques for this phase.

Techniques of Evaluation

The various methods of training evaluation are:

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• Observation.

• Questionnaire.

• Interview.

• Self diaries.

• Self recording of specific incidents.

Methods of Training:

There are various methods of training, which can be divided in to cognitive

and behavioral methods. Trainers need to understand the pros and cons of each

method, also its impact on trainees keeping their background and skills in mind

before giving training.

Cognitive methods are more of giving theoretical training to the trainees. The

various methods under Cognitive approach provide the rules for how to do something,

written or verbal information, demonstrate relationships among concepts, etc. These

methods are associated with changes in knowledge and attitude by stimulating

learning.

The various methods that come under Cognitive approach are:

LECTURES

DEMONSTRATIONS

DISCUSSIONS

COMPUTER BASED TRAINING (CBT)

INTELLEGENT TUTORIAL SYSTEM(ITS)

PROGRAMMED INSTRUCTION (PI)

VIRTUAL REALITY

Behavioral methods are more of giving practical training to the trainees. The

various methods under Behavioral approach allow the trainee to behavior in a real

fashion. These methods are best used for skill development.

The various methods that come under Behavioral approach are:

GAMES AND SIMULATIONS

37

BEHAVIOR-MODELING

BUSINESS GAMES

CASE STUDIES

EQUIPMENT STIMULATORS

IN-BASKET TECHNIQUE

ROLE PLAYS

Both the methods can be used effectively to change attitudes, but through

different means.

Another Method is MANAGEMENT DEVELOPMENT METHOD –

MANAGEMENT DEVELOPMENT –

The more future oriented method and more concerned with education of the

employees. To become a better performer by education implies that management

development activities attempt to instill sound reasoning processes.

Management development method is further divided into two parts:

ON THE JOB TRAINING –

The development of a manager’s abilities can take place on the job. The four

techniques for on-the job development are:

COACHING

MENTORING

JOB ROTATION

JOB INSTRUCTION TECHNIQUE (JIT)

OFF THE JOB TRAINING –

There are many management development techniques that an employee can

take in off the job. The few popular methods are:

SENSITIVITY TRAINING

TRANSACTIONAL ANALYSIS

STRAIGHT LECTURES/ LECTURES

SIMULATION EXERCISES

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Suggestions to Improve Training:

Before the Training Programme:

• Explain to the employee why they were selected for the training programme and

discuss the anticipated benefits for your department or division. This 'preview' helps

the employee focus on what is expected of them after the training programme

finishes.

• Ask the employee to describe the benefits they expect to receive from the

programme. Having the employee focus on their personal expectations prior to the

start of training can increase the learning potential of any programme.

• Explain to the staff what is expected from them in terms of punctuality,

attendance and participation in the training programme.

• If more than one employee is being sent to a training programme, introduce

them to each other so they feel comfortable with their fellow participants.

• Ensure the employee understand how the training programme will benefit both

their current job performance while improving their advancement potential.

During the Training Programme:

• For extended training programmes, have the participants brief their managers as

the course progresses. This can be done via telephone or fax when face-to-face

meetings are impossible. These briefings 'force' the participant to evaluate the

material on a daily basis, thereby enhancing their learning outcome.

• Managers should discuss any problems or uncertainties that arise in order to help

participants identify examples of how the material can be applied on the job.

• If the participants are required to complete an interim assignment the manager

should get personnel that are not attending the course involved. This will maximize

the amount of individuals who benefit from the course.

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After the Training Programme:

• Meet with course participants to review (1) what they learned, (2) how will they

use the new knowledge in their day-to-day work, (3) suggestions they have for

improving the course, and (4) who else should attend the course.

• Ask the employees for suggested company improvements based on the material

they learned during the training programme. Managers must be willing to implement

these suggestions on a trial basis and ensure the employee is involved with the

implementation and evaluation process.

Remembering these simple tricks will improve your organization's training ROI while

making sure the performance of your workforce will continue to improve. Finally, I

want to emphasize again, these tricks are not designed only for the HR staff --

improving the training process is everyone's business!

RESEARCH METHODOLOGY

Research methodology is the method or the entire procedure involved in carrying out

a research for a specific purpose. Research is a way to systematically solve the

research problem.

In it we study the various steps that are generally adopted by a research to know not

only the research methods or techniques and they need to know the criteria by which

they can decide technique and procedure will be applicable to certain problems and

other will not. Research is thus an original contribution to the existing stock of

knowledge making for its advancement. Te purpose of research is to discover answer

to questions application of scientific procedures.

Research always starts with a question or a problem.

40

Its purpose is to find answers to questions through the application

of the scientific method.

It is a systematic and intensive study towards study a more

complete knowledge of the studied.

As marketing does not address itself to basic or fundamental questions, it does not

qualify. On the contrary, it tackles problems, which seem to have immediate

commercial potential. In the view of the major consideration, marketing research

should be regarded as applied research. We may also say that marketing research is of

both types problem solving oriented.

TYPES OF RESEARCH

The approach followed in his type of research, the researcher has to contact the

person directly to know about the available information and analyze these to make a

critical evaluation. The facts and information required to analyze the data was

available in the interviewer’s statements.

It is called descriptive as it in the present. The researcher has no control over the

variable. He can report what has happened or what is happening.

DATA COLLECTION

PRIMARY DATA:

41

Primary data are data freshly gathered for specific purpose or for a specific research

project.

When the needed do not exist or are dated, inaccurate, incomplete, unreliable, the

researcher will have to collect primary data. The normal procedure is to interview

some people individually or in groups, to get a sense of how people feel about the

topic in question and develop a formal research instrument into field. It is also called

as the first hand data.

SECONDARY DATA:

It refers to data that is collected from some other sources, probably for similar

purpose already exists somewhere.

The research assignment under was aimed at gathering some vital information

Alliance for Debit Card Customer used by kotak Mahindra bank in attracting the

customer and the reasons for enormous success.

Among all the available ways, survey was the most feasible option to carry in the

cores of carrying out the research as it was more economical and keeping the limited

time in hand it thus proved to be the best option.

Survey was the best option as:

It provides larger and fast coverage

Low cost is involved

Direct interface with people

The analysis can be done on the basis of structured questionnaire

Data is easier to compile and categorize

RESEARCH INSTRUMENTS

42

A structured questionnaire was used as tool for data collection. To capture the

consumer, preferences, questionnaire having two type of question were used areas

follows:

Close ended question

Open ended question

The questionnaire covers aspects like:

Kotak Mahindra bank popularity among the customer

The impact of scheme like tie up with the shop keeper or big organization

The prospective and potential customer of the kotak Mahindra bank

Exiting banker’s and main banker’s and the facilities of the current banker

Earn interest on your current account

Exiting banker’s offer dedicated relationship manager to service the a/c

SAMPLE TECHNIQUE

It is all about a study of relationships existing between debit card customer and kotak

Mahindra bank. After taking the consideration of Patna city population it was decided

to use non probability sampling method to use.

SAMPLE SIZE

The larger the sample the more accurate the results would be but practically it is not

feasible to survey the entire target population customers or even substantial portion of

it. In this project the sample size is 100. In this project being aware of the time and

cost constraints sample size was limited.

SAMPLE ELEMENT

(To whom this survey concern) To know the promotional strategy and its impact on

customers

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Sample frame

The research consists of list of items from which sample is to be drawn. In this case

sample is to premises of kotak Mahindra bank in exhibition road in Patna region.

Sample design

It is definite plan for obtaining a sample frame. It refers to technique or procedure the

researcher would adopt in selecting some sampling units from which references about

the population are drawn. It is a definite plan determined before data are actually

collected for obtaining a sample from a given customer population.

Sample method

End consumers: Random sampling

In this research

The information is based on primary data.

The quantitative measures have been used.

The tools used were observation personal interview and questionnaire.

Data collection and analysis

All the analysis and findings of the project is based on the data which has been

collected from the survey of the market. The analysis of data requires a number of

closely related operations into raw data through tabulation chart and then draws

inferences. Analysis of work is generally based on computation of various

percentages.

Preparation of report

After analysis is the next step is in the preparation of report has been prepared

according to the report writing principals.

44

The objective, clarity in presentation of ideas and the use of charts have been

maintained throughout the report. Once the data has been collected the researcher has

to process analysis and interpret the same. Sufficient attention is often not given to

these aspects with the result that the quality of report suffers.

Tabulation

It comprise of sorting of data into different categories and counting the number of

cases that belongs to each categories.

Analysis and interpretation

These are central steps in the research process. The goal of this analysis is to

summarize the collected data in such a way that they provide answers to the question

that triggered the research.

Hence the questionnaire prepared was then done to bring the meaning an implication

study.

All result is interpreted from raw data which was collected through survey, while

results have been filtered from the interview of the bank and customers through

questionnaires.

For convince and easy interpretation all the data has been presented in graphical

method.

45

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 Old Private

Banks

46

Other Public Sector Banks

(IDBI) SBI and its

Associates

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

47

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.

48

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 havinga large number of fragmented players."

UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign banks

in India. This is as an aftermath of the sudden interest shown by Reserve Bank of

India paving roadmap for foreign banks in India greater freedom in India. Among

them is the world's best private bank by EuroMoney magazine, Switzerland's UBS.

49

The following are the list of foreign banks going to set up business in India:-

Switzerland's UBS

US-based GE Capital

Credit Suisse Group

Industrial and Commercial Bank of China

SWOT ANALYSIS

1. Strengths:

Capital Markets Franchise: Early focus and investment in its retail broking

franchise has enabled KMB to maintain a top three position for five years. Its

institutional broking business has been resilient to the loss of Goldman Sachs as a JV

partner.

Professional Management: Apart from possessing a strong talent pool across all

businesses, Kotak has shown remarkable stability in its top management over many

years.

Strong Technology: The relatively younger branch network gives it the advantage of

using more modern technology.

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Well Capitalized: KMB is well capitalized, both at the parent bank level and in the

subsidiaries. This provides an excellent platform for growth.

2. Weakness:

Wholesale Funding Costs: Kotak’s dependence on subsidiaries as well as its

relatively young branch network mean that it is dependent on wholesale funding,

which tends to be unstable when rates are volatile.

Latecomers: Because of its late entry in 2003, its rollout of a branch network has

come later than other private sector banks. As a result, it is at the wrong end of real

estate and wage inflation.

3. Opportunities:

Low loan and retail penetration: Retail credit in India provides significant

potential for growth given its under-penetration. The country’s consumer loan-to

GDP ratio is 8% and its mortgage/GDP ratio is at 4%.

Stressed Asset Business: As a consequence of significant legal changes a few years

ago, the stressed asset market is growing in size as recoveries are now possible. Kotak

has a strong presence in this business.

4. Threats:

Capital Market slow-down: A significant slowdown in capital markets growth could

start to affect earnings due to significant capital markets dependent revenue streams.

Competition: Private sector banks will continue to pose the largest threat to KMB’s

market share. The possible entry foreign banks post FY3/09 could further add to this

competitive pressure.

Rising Rates: Rising interest rates could affect loan growth and might lead to higher

NPLs.

51

DATA ANALYSIS &INTERPRETATION

Q1. Do you earn interest on your current account?

BASE OF CUSTOMER YES NO

100 85 15

52

Current Acount

15%

85%

0

10

20

30

40

50

60

70

80

90

yes no

100

Figure 1

Interpretation: I have tried to know the opinion of respondents that does

this bank provide interest on current account.

Q2. Would you consider switching over to kotak Mahindra bank if you

get interest on your CA?

BASE OF CUSTOMER YES NO

100 60 40

53

60%

40%

0

10

20

30

40

50

60

Switching Over

yes 60

no 40

100

Interpretation: I have tried to know that, which the potential customers

of kotak Mahindra bank are.

Q3. Whether home banking facility is available to you from your bank?

BASE OF

CUSTOMER

YES NO

100 10 90

54

Interpretation: The response I gathered so that 80% of respondents say

that our bank does not provide home banking facility.

Q4. Are you interested in using home banking facility?

BASE OF

CUSTOMER

YES NO

100 75 25

55

Interpretation: The response which I gathered so that 75% respondents

are interested to using home banking facility without any charges.

Q5. Does the existing banker offer you a dedicated RM to service the a/c?

BASE OF

CUSTOMER

YES NO

100 15 85

56

Interpretation: The response which I gathered show that 15%

respondents have dedicated relationship manager it means that manager

should provide all type of information which is beneficial for the

customers.

Q6. Do you have any DD requirements for payments?

BASE OF

CUSTOMETR

YES(REGULARLY) YES

(RARELY)

NO

100 35 55 10

57

Interpretation: The response which I gathered 55% respondents say that

it rarely uses in service.

Q7. Do you pay for outstation cheque collection?

BASE OF

CUSTOMER

YES NO DON’T USE

THE SERVICE

100 20 5 75

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Interpretation: The responses which I gathered show that 75%

respondents say that don’t use this service because ATM’s are available.

Q8. Do you require CC/OD facility?

Base of customer Yes No

100 75 25

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Interpretation: The response which I gathered that 75% respondents say

that cash credit or over draft facility required. Especially business man

said.

Q9. Are you looking forward for any other benefits?

BASE OF

CUSTOMER

YES NO

100 75 25

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Interpretation: The response which I gathered that 75% respondents say

that yes it required like ECG machine, home banking facility, CC/OD

facility.

Q10. Would you consider switching over to kotak Mahindra bank if you

get

Interest on CA

Home banking facility

Dedicated RM

CC/OD facility

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BASE OF

CUSTOMER

YES NO

100 88 12

Interpretation: The response which I gathered that 88% respondents are

interested to switch over to kotak Mahindra bank because bank provides

special facility to the customers.

CONCLUSIONS

I enjoyed my summer training in Kotak Mahindra bank. As we know that it

is most crucial activity in the field of marketing &it is very difficult to read the

psychology of the people but still I enjoyed a lot &learnt so much from them.

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The project gave me immense opportunity to give myself exposure and ideas

in the field of marketing. Overall we conducted that most of the people get

themselves insured according to their need.

LIMITATIONS

Preparing this project was not an easy task. I had to suffer a lot of limitations.

It was time consuming process and some respondents were busy. A respondent

has to give time to us from this busy time schedule.

It was so much expensive because I used to travel different location in order to

interview the people.

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People did not to cooperate sometimes they reacted in negative manner against

this method of collect the information.

IN THESE TIE-UPS THERE ARE:

Some of them are not ready to listen because they showed least interest in the tie-

up with the kotak Mahindra bank.

The branded shops was not ready to give the 10% discount because they already

known by the market.

During this survey some problems like short span of time made it difficult to

convince the retail shops customer.

RECOMMENDATIONS

Kotak Mahindra bank. Bank had large share in Patna with knowledgeable

employees’ hard-working people there it easy for the bank to full in crowed.

To end up with, in short I would only like to draw the attention of are and all

to the central focal point i.e. which are operating in Patna. Kotak Mahindra

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bank. Bank with respect to infrastructure, customer satisfaction not work’s

service; personal attention towards customers is bank to the first in position.

And it wants take time for the bank network as the largest ape training today.

More focus towards customer satisfaction.

Customer complaint should be taken more seriously.

Good public relation should be maintained.

BIBLIOGRAPHY

BOOKS:

1. Retail management By Berry Berman and Joel.R.Evans

2. Research methodology By .R.Kothari

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Secondary Data:

1. Magazine

.Business world (August 11th 2007)

.Indian Today (February 7th 2008)

. Business Today (January 2nd 2007)

. Pitch (March 15th 2007)

2. Newspaper

. Times of I ndia (June 6th 2007)

. Hindustan Times (December 15th 2007)

3. Internet

Www.kotak. Com

Annexure

1. Name of the bank you are banking with?

a. Private

b.Public

c. foreign

2. Does your bank provide relationship manager?

a. Yes

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b. No

3. Does your bank provide advisory services?

a. Yes

b.No

4. Does your bank provide financial planning for your family?

a.Yes

b.No

5. Does your bank provide cash pick up from home or office?

a.Yes

b.No

6. what is your average turnover/month

a. Less than 2 laces b. 2-5 laces

c. 5-10 laces d. 10-15 laces

7. Who are your exiting bankers?

8. Who is main banker?

9. What are the facilities you are enjoying with the current bankers?

10. What is the minimum AQB that you have to keep in your CA with the exiting

bank?

11. What is the AQB that you generally maintain in your CA with your bank?

12. Do you earn interest on your CA?

A. Yes

B. No

12. Would you consider switching over to kotak Mahindra bank if you get interest

on your CA?

A. Yes

B. No

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14. Whether home banking facility is available to you from your bank?

A. Yes

B. No

15. Are you interested in using home banking facility?

A. Yes

B. No

16. Does the existing banker offers you a dedicated (RM) relationship manager to

service the account?

A. Yes

B. No

17. Do you have any DD requirement for payments?

A. Yes (regularly)

B. Yes (rarely)

C. No

18. Do you pay for outstation cheque collection?

A. Yes

B. No

C. Don’t use the service

If yes,

Charges?

19. Do you require CC/OD facility?

A. Yes

B. No

Any other funding facility

20. What’s your average cash deposit per month?

A. less than 1 lacs B. 1-2 lacs

C. 2-4 lacs D. 4-6 lacs

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21. Are you looking forward for any other benefits?

A. Yes

B. No

Others…………………………………………..

22. Would you consider switching over to kotak Mahindra bank if you get

A. interest on CA

B. Home banking facility

C. Dedicated RM

D. CC/OD facility

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