Nagesh Project

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A Project

On

Analyse the acquisition strategy for popular banking products at operationallevel with specific focus on Sales process, Sales team organisation, and Sales

incentive structure

Project report submitted in partial fulfilment of the requirements for

The award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

K.Nageshwar Rao(Reg. No. 08E11E0018)

DEPARTMENT OF MANAGEMENT STUDIES

Bharat Institute Of Engineering & Technology

(Affiliated To Jawaharlal Nehru Technological University)

Hyderabad

2008-2010

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DECLARATION

I hereby declare that the project entitled A Study on Analyse the acquisition strategy for

popular banking products at operational level with specific focus on Sales process, Sales

team organisation, and Sales incentive structure is the work done by me at Somajiguda during

the year 2010 ad is submitted in the partial fulfilment of the requirement for the award of Master of

business Administration. I also declare that this project work is original and I have not copied from

any other research project work or other source.

Place: Hyderabad K.Nageshwar Rao

Date: 08E11E0018

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ACKNOWLEDGEMENT

The satisfaction and exhilaration that accompanies the successful completion of all my

tasks would be incomplete without mentioning the people who made it possible, whose constant

guidance and encouragement, crowned all my efforts with success.

I express my sincere gratitude to my faculty guide Mr. SAURABH SHANKAR and

organisation guides MR. GUNTUR CHAKRAPANI (B.M) and MR. ATHUKURI MADHU

CHAKRAVARTHY (Senior Manager-Retail Liabilities ) for extending their continuoussupport, guidance and encouragement in completion. The project would not have been possible

without their support.

I also take opportunity to thanks CIMS, Hyderabad, for extending the guidance and co-

operation in completion of the report

K.NAGESHWARRAO

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CHAPTER- I INTRODUCTION

INTRODCUTION

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1.0 Acquisition Strategy

Acquisitions have always been a fundamental component of Sages growth strategy. Through

acquisition, we have increased our customer base and expanded our business internationally.

Sages acquisition strategy is based on three objectives:

To broaden the portfolio of our existing products and services we can offer our customers

To enter new geographic regions

To add new industry-specific applications to our product lines

Acquisitions also contribute to our customer base, with new customers who can migrate to the

broad Sage product range.

1.1 SALES PROCESS

A sales process is a systematic approach to selling a product or service. A growing body of

published literature approaches the sales process from the point of view of an engineering

discipline (see sales process engineering).

Sales process includes seller and buyer risk management, standardized customer interaction in

sales, and scalable revenue generation. A major advantage of approaching the subject of sales froma "process point of view" is that it offers a host of well-tested design and improvement tools from

other successful disciplines and process oriented industries. In turn, this offers potential for quicker

progress. Quality expert Joseph Juran observed, "There should be no reason our familiar principles

of quality and process engineering would not work in the sales process". A sales team's

fundamental job is to move a greater number of larger deals through the sales process in less time.

Specific steps or stages in a sales process vary from company to company but generally include the

following elements:

From a seller's point of view, a sales process mediates risk by stage-gating deals based on

collection of information or execution of procedures that gate movement to the next step. This

controls seller resource expenditure on non-performing deals. Ideally this also prevents buyers

from purchasing products they don't need though such a benefit requires ethical intentions by the

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seller.

An effective sales process can be described through steps that walk a salesperson from meeting the

prospect all the way through closing the sale. Often a bad sales experience can be analyzed and

shown to have skipped key steps. This is where a good sales process mediates risk for both buyerand seller. A solid sales process also has the dramatic impact of forecasting accuracy and

predictability in revenue results.

1.2 Sales Incentive

Remuneration offered to a salesperson for exceeding some predetermined sales goal. Salesincentives are offered by manufacturers as part of a promotion for the sale of their goods. The

incentive may be in cash, or it may take the form of a special prize, such as a trip to an exotic or

exciting vacation place.

Program design considerations

If programs are to be effective, all the factors that affect behavior must be recognized, including:

motivation, skills, recognition, an understanding of the goals, and the ability to measure progress.

Often companies turn to incentive programs to counter failures in meeting targets, poor behaviors

or performance, unengaged employees, poor morale or attitude, high turnover or loss of talent, or

increases in expectations from management.

Many companies mistakenly assume that what works for one organization will work well for all

organizations. Companies often attempt to create incentive programs without thinking in detail

about how each program feature will best suit their targeted audience.

A successful incentive program requires clearly defined rules, suitable rewards, efficient

communication strategies, and measurable success metrics. By adapting each element of the

program to fit the target audience, companies are better able to engage program participants and

enhance the overall program effectiveness.

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An incentive program represents a substantial investment to most organizations. Receiving a

sufficient return on that investment requires the full participation of the program participants.

Incentive programs are based upon the concept that effort increases as people perceive themselves

progressing towards their goal. Therefore programs should offer participants a variety of products

and services based on their unique interests and diverse needs. Successful programs need to

carefully develop their reward methods to keep participants eager to approach a new goal once

they have achieved a reward.

Once the program goals have been determined, every aspect of the program must be measured

against this goal in order to ensure the program's success in goal achievement. If successful,

objectives should provide measurable results allowing the organization to track performance and

measure the overall success of the program.

Points-based incentive programs are a type of program where participants collect and redeem

points for awards. Depending on the program type and the organizational objectives, points can be

awarded on a number of criteria including positive employee behavior, the demonstration of

organizational values, repeat customer purchases, the sale of new products, increased overall sales,

or even the use of proper safety precautions. In addition to point awarding, the levels at which

points can be redeemed can be customized by the organization and set at virtually any level. Points

programs are a way for organizations to motivate behavior over time while improving the

organizations overall performance.

Motivation

Employee incentive programs are programs used to increase overall employee performance.

Employee programs are often used to reduce turnover, boost morale and loyalty, improveemployee wellness, increase retention, and drive daily employee performance.

These programs are primarily used to drive sales, reduce sales costs, increase profitability,

develop new territory, and enhance margins. Sales incentive programs have the most direct

relationship to outcomes.

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A Sales Incentive Plan (SIP) is a business tool used to motivate and compensate a sales

professional (or sales agent) to meet goals or metrics over a specific period of time, usually broken

into a plan for a fiscal quarter or fiscal year

Selecting the appropriate rewards is vital to any programs success. The goal in choosing rewards isto select items tha t will spark the participants interest or feelings, and support the programs

objectives. Effective rewards will both motivate short-term behavior and provide motivation over

time. There are several types of rewards.

Gift cards/certificates

Gift cards/certificates are prepaid retail cards or certificates which are redeemed at a later time at

checkout. In general, they are available in two types: (1) cards which carry a major credit card

brand, commonly referred to as universal gift cards (UGC), and are redeemable at all merchants

accepting the credit card brand; and (2) retailer-specific cards, issued by well-known merchants,

redeemable only through the issuing retailer. In the 2005 Incentive Federation Study of Motivation

and Incentive Applications, gift cards were ranked as the most frequently used type of corporate

reward.

Experiential

Experiential rewards provide program participants with an experience. This form of reward gives

organizations the ability to offer their employees and customers interesting experiences as

incentives. Examples might include a seaplane flight and lunch, a two hour horse ride on the

beach, a day of sailing for two, a chance to meet a star athlete, or the use of a party planner for an

occasion of the recipients choice. Experiential rewards allow participants to share their

experiences with others and reinforce the reward and the behavior that led to the giving of the

reward.

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1.3 Sales team organisation

Working as a team

Although distinct from each other, the roles which are to work together to ensure world class

customer service is delivered. Every team member becomes fully immersed in working with their

Sales team Their combined efforts create exceptional results, which is why our clients continue to

enjoy all the benefits bank.

Planners

Planners are integral to each sales operation. They work closely with team members, using various

data sources to construct the most effective sales team. Planners are also heavily involved in the

research sales Co-ordinators.

Sales Co-ordinators are the driving force who ensure that campaigns and promotions run smoothly,

in order to provide our clients with the best possible results. Sales Co-ordinators liaise with their

targets ensure that campaigns, promotions are executed as planned. Sales Co-ordinators develop

close relationships with a range of different people with whom relationship has to be build.

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CHAPTER- II LITERATURE REVIEW

LITERATURE REVIEW

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2.0 Literature review

The money and the goodies were not my primary motivation. My philosophy was simple; "If you

win all the incentives there are to win, you couldn't help but be at or near the top every time."

Corporations use incentive programs to drive behaviour and I agreed to play the game and conform

to their wishes; what gets rewarded, gets done. The problem, from the vendors' point of view, is

that not all salespeople are motivated the same way. Consequently, not all incentive programs

work. Why is that? From my experience, I'll make the following observations:

1) The 80-20 Rule: Twenty percent of the salespeople make eighty percent of the sales and

profits. Too often, sales incentives - perhaps in an effort to be fair - are geared to the entire sales

force or VAR channel. The risk in a program like this is that the glove that fits everyone, in theend, fits no one. Enlightened marketing strategists know that the top twenty percent are already

motivated. Simply put, a strategy that's geared to light a fire under the next twenty percent - the

next logical group - doubles the business in a more cost efficient manner.

2) The KISS Theory: Salespeople by nature are like electricity. They naturally take the path of

least resistance. That's not to say they are lazy or untoward. In fact, it's just the opposite. Good

salespeople look to simplicity to make things happen.

Often, incentive programs fail miserably because of innate complexities either in their recording

and reporting systems or in how rewards are won. If you put the salesperson in a position where he

or she is forced to assess "To get this, I first have to sell this, plus these and not these and they

must include these," you are creating a recipe for confusion, sales frustration and failure. In the

end, the incentive program becomes a disincentive! The remedy? Manufacturers must keep the

incentive program sweet and simple and attainable. There can be no ambiguity. Anything less will

result in a lack of interest, as well as a waste of time and money that can sometimes spill over intoother departments whose task it is to administer and account.

An Article from http://sbinfocanada.about.com/cs/marketing/a/incentiveprogps.htm

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2.1 Sales Process

The A stands for Attitude, B for Behaviour and C for Competency. Each of the A, B and C

components has three sub sets. In Attitude and Behaviour the three subsets are:

1. You

2. The Organization

3. The Market

In C, Competency, the three subsets are: Building Relationships, Qualifying prospects, and

prescribing solutions.

Each of these subsets breaks down into another three subsets. This leads to a sales process which is

as simple as the following eight steps, particularly when it applies to face to face selling B2B or

B2C.

1. Build Rapport

This 1st step in the sales process is most important in order to build the required trust necessary to

move forward. Without rapport, you might as well pack up and leave. Through the use of advanced

NLP techniques and the asking of open ended questions, the prospect feels comfortable and starts

to open up. The job of the sales person is to make their prospects comfortable and to initiate

conversation. The more they talk, the more you listen, the more you learn and the more they like

and trust you.

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2. Set Parameters

Parameters or ground rules in the sales process are set once rapport has been established. The

parameters are set around the amount of time required for the meeting, and what the prospect's

objectives are for that time frame, followed by your objectives.

You must request permission to ask questions and to take notes, then, ensure the customer is

comfortable with the fact you may not be able to help them in the end. Remember you cannot

solve everyone's problem. A simple statement like, "I may or may not be able to help you. If I

can't, are you ok with me telling you that I cannot help? If I'm able to help, I will inform youimmediately... Are we comfortable this honest approach with each other and working on a "yes or

no" basis? "

3. Uncover buying motivators

Buying motivators are the reason people buy and they are usually emotional reasons. Your job is to

ask questions during this part of the sales process in order to uncover the buying motivators.

Without buying motivators, there is no reason to buy. No pain, no gain.

4. Uncover financial:

Ability in this step of the sale process, you summarize the buying motivators and uncover the

extent of their budget by asking a question such as, "Do you have a budget set aside for these

issues?"

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If the answer is no, ask, "How do you intend to proceed?" However, if the answer is yes, ask, "Can

you share it with me in round numbers?" If not, use bracketing techniques. It is your job not to

quote a price but to get them to quote their budget.

5. Uncover decision making

This step follows summarizing buying motivators and financial ability. You need to ask, "When

will you be making a decision?" and "Who, other than yourself, is involved in the decision making

process?" If you don't ask these questions, you don't get it!Remember this is a step by step sales process and each step has to be fully completed before

moving onto the next step.

6. Summarize

In this step of the sales process, you summarize all that you have learned with regard to the buying

motivators, the financial ability and the decision makers. You have now qualified the prospect and

should be in a position to know if you can help them or not.

If not, tell them honestly just as you mentioned earlier in setting the parameters. If you can help

them, tell them you can and ask this question, "As discussed earlier, I believe I have a solution to

your needs. Are you still ok with giving me a yes or no answer subsequent to my presentation?"

http://www.articlesbase.com/business-articles/8-specific-simple-sales-process-that-works-for-b2b-and-b2c-881868.html#ixzz0v4NF1tmX

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2.0 RESEARCH METHODOLOGY

As the title of the project suggests the purpose T o study the Analyze Acquisition Strategy for

popular banking products at operational level with specific focus on Sales process, Sales team

organization& Sales incentive structure Research comprise defining and redefining problems,formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making

deductions and reaching conclusions; and at last carefully testing the conclusions to determine

whether they fit the formulating Hypothesis .

In short, the search for Knowledge through Objective and Systematic method of finding solutions to

a problem is Research.

2.1 SOURCES OF DATA

Data is collected from primary as well as secondary source. For primary data customer were

personally intervened and for secondary data. Annual report, journals,

2.2 METHODOLOGY:

The methodology adopted in conducting this survey was quite simple. First there was collection of

data from various sources including personal interview. Then after scanning and properly

analyzing and interpreting the information available on hand, a final report was prepared.

1. PRIMARY DATA : Primary data was collected from the sample by a self-administered

2.questionnaire in presence of the interviewer.

2. SECONDARY DATA: The chief sources of secondary data were magazines, newspaper,

journals etc.

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2.3 RESEARCH DESIGN

Type of Research: - Descriptive research

Descriptive research is also called Statistical Research. The main goal of this type of research is to

describe the data and characteristics about what is being studied. The idea behind this type of

research is to study frequencies, averages, and other statistical calculations. Although this research

is highly accurate, it does not gather the causes behind a situation.

The regular interaction with the Employees and the Line Managers revealed about the various

strategies involved in performing business activities and gathering data using various techniques

and software applications.

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The maincharacteristic of this method is that the researcher has no control over the variables;

2.4 DATA SOURCES

There are two types of data:

A. PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose of facilitating the study

is known as primary data. So in this research the data is collected from respondents through

questionnaire.

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B. SECONDARY DATA.

For the company information I had used secondary data like brochures, web site of the company

etc.

The Method used by me is Survey Method as the research done is Descriptive Research.

2.5 RESEARCH INSTRUMENTS

Selected instrument for Data Collection for Survey is Questionnaire.

2.6 SAMPLE SIZE:

The survey is conducted among 25 Employees.

Simple statistical tools have been used in the present study to analyze and interpret the data

collected from the field. The study has used percentile method and the data are presented in the

form of diagrams.

2.7 SCOPE OF THE STUDY

This study helps Analyze Acquisition Strategy for popular banking products at operational level

with specific focus on Sales process, Sales team organization& Sales incentive structure of Kotak

Mahindra Bank.

The study provides knowledge of various products& investment services of Kotak Mahindra

Bank

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The study helps to learn of work culture of organization. The study of also helps to learn Operations of the Bank.

2.8 OBJECTIVES OF THE STUDY

(a) To Study Sales Process at operational level of Kotak Mahindra Bank.

(b) To study Sales Incentive Structure of Kotak Mahindra Bank.

(c) To study Sales Team Organisation Structure of Kotak Mahindra Bank.

2.9 LIMITATIONS

The study could not be made that comprehensive due to time constraints. Some customers feel

uncomfortable to reveal some personal information relating to income etc. it might have happened

that some more essential information could have been collected.

The proposed study has been organized with reference to Kotak Mahindra Bank atHyderabad city (Somajiguda branch) only, which limited the universe of the study.

The bank officials have their own limitations to provide the information, particularly meant

especially for the internal use and unpublished; which also diluted the quality of the project

work.

As the present work is the output of efforts made by the single person, therefore it may be

suffered from some sort of personal limitations.

As the project work contains limited sample size of 25 employees so, it has also created

certain limitations.

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CHAPTER- III COMPANY PROFILE

COMAPNY PROFILE JOURNEY SO FAR BOARD OF DIRECTORS AWARDS

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3.0 Company Profile

Think Investment Think Kotak

Kotak Mahindra is one of India's leading financial

institutions, offering complete financial solutions that

encompass every sphere of life. From commercial banking,

to stock broking, to mutual funds, to life insurance, to

investment banking, the group caters to the financial needs

of individuals and corporate.

The group has a net worth of over Rs.1, 800 crore andemploys over 4,400 employees in its various businesses. With a presence in 82 cities in India and

offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest

investment banks and brokerage firms) and Old Mutual (a large

insurance, banking and asset management conglomerate).

The Kotak Mahindra Group was born in 1985 as Kotak Capital

Management Finance Limited. This company was promoted by

Uday Kotak , Sidney A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand

Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra

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

Established in 1984, The Kotak Mahindra Group has long been o ne of Indias most reputed

financial organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the groups flagship company

was given the license to carry on banking business by the Reserve Bank of India (RBI).Thisapproval creates banking history since Kotak Mahindra Finance Ltd is the first company in India to

convert to a bank. The license authorizing the bank to carry on banking business has been obtained

from the RBI in tune with Section 22 of the Banking Regulation Act 1949.

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KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney &A.A.Pinto

under the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a

Certificate of Commencement of Business on 11 th Feb 1986.

The bank customers have access to entire VISA netw ork of 4500 ATMS in India and800000ATMS worldwide accepted in more than 56000 establishments across India and 10 million

worldwide. The customer also has access to over 800 ATMs with sharing arrangements with UTI

BANK, of these 125 are in the NCR.

3.1 Journey So far

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 Indias

largest financial retail marketing networks

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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 Groups entry into information distribution.

1998 : Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.

2000 : Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance business.

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

commencement of private equity activity through setting up of Kotak Mahindra Venture

Capital Fund.

2003 : Kotak Mahindra Finance Ltd. Converts to bank 2004 : Launched India Growth Fund, a private equity fund.

2005 : Kotak Group realigned joint venture in Ford Credit; their stake in

Kotak Mahindra Prime was bought out (formerly known as Kotak Mahindra

Primus Ltd) and Kotak groups stake in Ford credit Kotak Mahindra was sold.

Launched a real estate fund. Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital

Company and Kotak Securities.

Launched a Pension Fund under the New Pension System.

Kotak Mahindra Bank Ltd. opened a representative office in DubaiEntered Ahmadabad Commodity Exchange as anchor investor.

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3.2 Key group companies and their businesses

Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance

Ltd which was established in 1985, was converted into a bank- Kotak

Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its

banking operations offer a central platform for customer relationships across the group's various

businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking,

Treasury and Housing Finance.

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier

Investment Bank. KMCC's core business areas include Equity Issuances,

Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities

Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over

the years, Kotak Securities has been one of the leading investment broking

houses catering to the needs of both institutional and non-institutional investorcategories with presence all over the country through franchisees and coordinators. Kotak

Securities Ltd. offers online and offline services based on well-researched expertise and financial

products to non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra

Primus Limited) has been formed with the objective of financing the retail

and wholesale trade of passenger and multi utility vehicles in India. KMP

offers customers retail finance for both new as well as used cars and wholesale finance to dealers

in the automobile trade. KMP continues to be among the leading car finance companies in India.

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3.3 BOARD OF DIRECTORS

Dr. Shankar Acharya, Non-Executive Part-time Chairman Mr. Uday Kotak, Executive Vice-Chairman and Managing Director

Mr. Uday Kotak, B.Com, MMS (Masters in Management Studies), aged 50

years, is the Executive Vice-Chairman and Managing Director of the Bank and its principal

founder and promoter. Over the past 23 years, he has built a team of professionals who have

been given independent charge of various businesses in Kotak Mahindra group. He was

responsible for starting the business as a start-up venture in a limited range of activities and

then building it up into a full financial services group, many of the constituents of which are

among the leading players in their respective fields. He is also a Member on the Board of

Governors of the Indian Council for Research on International Economic Relations (ICRIER),

Governing Member of The Mahindra United World College of India and Member of the

Executive Board of Indian School of Business.

Mr. Anand Mahindra Mr. Cyril Shroff Mr. Shivaji Dam Mr. C. Jayaram, Executive Director Mr. Dipak Gupta, Executive Director Mr. Asim Ghosh Dr. Sudipto Mundle

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Creating Banking History

Established in 1985, the Kotak Mahindra Group has long been one of Indias most reputed

financial organizations. In February 2003, Kotak Mahindra Finance Limited, the groups

flagship company was given the license to carry on banking business by Reserve Bank of India (RBI). This approval creates banking history since Kotak Mahindra Finance Limited is

the first company in India to convert to a bank.

3.4 Awards

1. 10 th Best Employer in India.

Best Employers in India Study had started as early as October 2006 .Out of several companies

from diverse business backgrounds who applied, a total of 230 companies were invited to

participate in the Best Employers Study. The views of over 10, 60,000 employees have been

represented by over 44,000 employees across India, making this one of the largest employee

Research Study conducted in the country.

As a participating organization, the Bank went through a series of screening processes

including service documentation of HR processes and practices, focus group discussions and

on-site audit with the HR team.

At the end of the study, Hewitt released the list of top 25 Best Employers in India. On 13 th

April 07, in an Award ceremony held in Mumbai, Kotak Mahindra Bank Ltd. was declared asThe 10 th Best Employer in India.

It was the only Bank in the top 10 Banking and Youngest Entrant in the entire list of Top 25.

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2. Kotak Mahindra Bank limited on 20 th July was awarded The Best Private Bank award in

Southern Asia.

3. In April 2006 Kotak Mahindra Bank get Kotak Mutual Fund bagged The Lipper India Fund

Award for Best Bond Fund.

4. Mr. Uday S Kotak won the award in the service category for Kotak Mahindra Bank.

5. Kotak Mahindra Bank wins F&S Voice of Customer Award in 2007.

3.5 Competitors

ICICI Bank

HSBC

HDFC Bank

Standard Chartered Bank

Citibank

ABN Amro Bank

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3.6 Kotak Current Accounts

Key Highlights of Our Current Account Products

Free Demand Drafts! Free at-par cheque books! Free RTGS & NEFT! Free out-station cheque collection! Free Cash deposits at home branch location! Free Home banking service! Free debit card with flexible card limits & usage at any VISA ATM!

Free Outward cheque returns! Active Money! Charges Reversal Offer!

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ACE: Minimum AQB- 2, 50,000

Key Features of Ace Account

Active Money interest on idle current account balances! Credit Access unsecured overdraft up to Rs. 10 lakhs! Free unlimited DDs payable at branch locations! Free DDs up to Rs. 30 lakhs p.m. payable at non-branch locations! Free NEFT & RTGS! Free payable at par cheque book! Free cheque collection at branch locations! Free Business Debit Card! Free access at all VISA ATMs anywhere in the world!

Free cash deposit up to 5 times of avg balance maintained p.m.! Free Home Banking service! Free Beat Cheque Pick-up service!

Elite: Minimum AQB- 1, 00,000

Key Features of Elite Account

Active Money interest on idle current account balances! Credit Access unsecured overdraft up to Rs. 10 lakhs! Free 100 DDs p.m. payable at branch locations! Free DDs up to Rs. 10 lakhs p.m. payable at non-branch locations! Free NEFT & RTGS! Free payable at par cheque book! Free cheque collection at branch locations! Free Business Debit Card!

Free access at all VISA ATMs anywhere in India! Free cash deposit up to Rs. 10 lakhs p.m.! Free Home Banking service! Free Beat Cheque Pick-up service! AQB Rs. 1 Lakh!

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Pro Account : Minimum AQB- 50,000

Key Features of Pro Account

Active Money interest on idle current account balances! Credit Access unsecured overdraft up to Rs. 10 lakhs! Free 50 DDs p.m.! Free NEFT & RTGS! Free payable at par cheque book! Free cheque collection at branch locations!

Free Business Debit Card! Free access at all VISA ATMs anywhere in India! Free cash deposit up to Rs. 5 lakhs p.m.! Free Home Banking service! Free Beat Cheque Pick-up service! AQB Rs. 50,000!

Edge Account: Minimum AQB- 25,000

Key Features of Edge Account

Active Money interest on current account! Credit Access unsecured overdraft up to Rs. 10 lakhs! Free 25 DDs p.m.! Free NEFT & RTGS!

Free payable at par cheque book! Free cheque collection for cheques above Rs. 1 lakh! Free Business Debit Card! Access at all VISA ATMs anywhere in India! 5 Free Txns per month at non-Kotak ATMs!

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Free cash deposit up to Rs. 3 lakhs p.m.! Home Banking service!

NEO: Minimum AQB- 10,000

Key Features of Neo Account

50% charge reversal offer! Credit Access - unsecured overdraft up to Rs. 10 lakhs! Free NEFT & RTGS through Net Banking!

Free payable at par cheque book! Free Business Debit Card! Access at all VISA ATMs anywhere in India! 5 Free Txns per month at non-Kotak ATMs! Free cash deposit up to Rs. 2 lakhs p.m.! Home Banking service! AQB Rs. 10,000!

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CHAPTER- III INDUSTRY PROFILE

INDUSTRY PROFILE HISTORY OF BANKING IN INDIA

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4.0 Industry Profile

Definition: Banking is one of the key drivers of the U.S. economy. Banking provides a safe place

to save excess cash, known as deposits. It also supplies liquidity to the economy by loaning this

money out to help businesses grow and to allow consumers to purchase homes, cars and consumer

products. Banks primarily make money by charging higher interest rates on their loans than they

pay for deposits.

The essential function of a bank is to provide services related to the storing of value and the

extending of credit. The evolution of banking dates back to the earliest writing, and continues in the

present where a bank is a financial institution that provides banking and other financial services.

Currently the term bank is generally understood an institution that holds a banking license. Banking

licenses are granted by financial supervision authorities and provide rights to conduct the most

fundamental banking services such as accepting deposits and making loans. There are also financial

institutions that provide certain banking services without meeting the legal definition of a bank, a

so called non-bank. Banks are a subset of the financial services industry.

The word bank is derived from the Italian banca, which is derived from German and means bench.

The terms bankrupt and "broke" are similarly derived from bancarotta, which refers to an out of

business bank, having its bench physically broken. Money lenders in Northern Italy originally did

business in open areas, or big open rooms, with each lender working from his own bench or table.

Typically, a bank generates profits from transaction fees on financial services and on the interest it

charges for lending.

Type of Banks

There are several different types of banks including:

Central banks usually control monetary policy and may be the lender of last resort in the

event of a crisis. They are often charged with controlling the money supply, including

printing paper money. Examples of central banks are the European Central Bank and

the U.S. Federal Reserve Bank.

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Investment banks "underwrite " (guarantee the sale of) stock and bond issues and advise on

mergers. Examples of investment banks are Goldman Sachs of the USA or Nomura

Securities of Japan.

Merchant banks were traditionally banks which engaged in trade financing. The moderndefinition, however, refers to banks which provide capital to firms in the form of shares

rather than loans. Unlike Venture capital firms, they tend not to invest in new companies.

Private Banks manage the assets of the very rich. An example of a private bank is the

Union Bank of Switzerland.

Savings banks traditionally just did savings and mortgages, and have special charters, but at

present there is nothing inherently distinct about a savings bank.

Offshore banks are banks located in jurisdictions with low taxation and regulation, such as

Switzerland or the Channel Islands. Many offshore banks are essentially private banks.

Commercial bank, is the term used for a normal bank to distinguish it from an investment

bank. Since the two no longer have to be under separate ownership, some use the term

"commercial bank" to refer to a bank or a division of a bank that mostly deals with

corporations or large businesses.

Retail banks primary customers are individuals. An example of a retail bank is Washington

Mutual of the USA.

Universal banks, more commonly known as a financial services company, engage in

several of these activities. For example, Citigroup, a large American bank, is involved in

commercial and retail lending; it owns a merchant bank (Citicorp Merchant Bank Limited)

and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup

Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to

customers in other countries.

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4.1 History of Banking in India

Without a sound and effective banking system in India it cannot have a healthy economy. The

banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its

credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of

the country. This is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the

nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for

withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank

transferred money from one branch to other in two days. Now it is simple as instant messaging or

dials a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the

journey of Indian Banking System can be segregated into three distinct phases. They are asmentioned below:

Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking

Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase1

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

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(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established which started

as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National

Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India,

Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set

up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures

between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the

functioning and activities of commercial banks, the Government of India came up with The

Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per

amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive

powers for the supervision of banking in India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation

was slow. Abreast of it the savings bank facility provided by the Postal department was

comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In

1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale

especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent

of RBI and to handle banking transactions of the Union and State Governments all over the

country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July,

1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister

of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalised.

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Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven

more banks. This step brought 80% of the banking segment in India under Government

ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in

the Country:

1949: Enactment of Banking Regulation Act. 1955: Nationalisation of State Bank of India. 1959: Nationalisation of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalisation of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India rose to

approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense

confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its

reforms measure. In 1991, under the chairmanship of M.Narasimham , a committee was set up by

his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give

a satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. Time is given more importance than money.

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The financial system of India has shown a great deal of resilience. It is sheltered from any

crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.

This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account

is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

From Wikipedia, the free encyclopaedia

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with

the Government of India holding a stake), 31 private banks (these do not have government stake;

they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a

combined network of over 53,000 branches and 49,000 ATMs. According to a report by ICRA

Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking

industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

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The Bank of Bengal, which later merged with the Bank of Bombay and the Bank of Madras to

form the Imperial Bank of India in 1921.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881

in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in

1895, which has survived to the present and is

now one of the largest banks in India.

Around the turn of the 20th Century, the Indian

economy was passing through a relative period of

stability. Around five decades had elapsed since

the Indian Mutiny, and the social, industrial and

other infrastructure had improved. Indians had established small banks, most of which served

particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a

number of Indian joint stock banks. All these banks operated in different segments of the economy.

The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian

joint stock banks were generally undercapitalized and lacked the experience and maturity to

compete with the presidency and exchange banks. This segmentation let Lord Curzon toobserve, "In respect of banking it seems we are behind the times. We are like some old fashioned

sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by

the Swedish movement. The Swedish movement inspired local businessmen and political figures

to found banks of and for the Indian community. A number of banks established then have

survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of

Baroda, Canara Bank and Central Bank of India.

The fervour of Swedish movement lead to establishing of many private banks in Dakshina

Kannada and Udupi district which were unified earlier and known by the name South Canara (

South Kanara ) district. Four nationalised banks started in this district and also a leading private

sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

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From World War I to Independence

The period during the First World War (1914-1918) through the end of the Second World

War (1939-1945), and two years thereafter until the independence of India were challenging for

Indian banking. The years of the First World War were turbulent, and it took its toll with bankssimply collapsing despite the Indian economy gaining indirect boost due to war-related economic

activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following

table:

Years Number of banks

that failed

Authorised capital

(Rs. Lakhs)

Paid-up Capital

(Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

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Post-Independence

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,

paralyzing banking activities for months. India's independence marked the end of a regime of

the Laissez-faire for the Indian banking. The Government of India initiated measures to play anactive role in the economic life of the nation, and the Industrial Policy Resolution adopted by the

government in 1948 envisaged a mixed economy. This resulted into greater involvement of the

state in different segments of the economy including banking and finance. The major steps to

regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and

it became an institution owned by the Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of

India (RBI) "to regulate, control, and inspect the banks in India."

The Banking Regulation Act also provided that no new bank or branch of an existing bank

could be opened without a license from the RBI, and no two banks could have common

directors.

However, despite these provisions, control and regulations, banks in India except the State

Bank of India, continued to be owned and operated by private persons. This changed with the

nationalisation of major banks in India on 19 July 1969.

Nationalization

The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank of India (Transfer to

Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]

By the 1960s, the Indian banking industry had become an important tool to facilitate the

development of the Indian economy. At the same time, it had emerged as a large employer, and a

debate had ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-

then Prime Minister of India expressed the intention of the GOI in the annual conference of the All

India Congress Meeting in a paper entitled Stray thoughts on Bank Nationalisation." The paper

was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI

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issued an ordinance and nationalised the 14 largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as

a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it

received the presidential approval on 9 August 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason

for the nationalization was to give the government more control of credit delivery. With the second

dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on,

in the year 1993, the government merged New Bank of India with Punjab National Bank. It was

the only merger between nationalized banks and resulted in the reduction of the number of

nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace

of around 4%, closer to the average growth rate of the Indian economy.

The nationalised banks were credited by some, including Home minister P. Chidambaram, to have

helped the Indian economy withstand the global financial crisis of 2007-2009.

Liberalisation

In the early 1990s, the then Narasimha Rao government embarked on a policy

of liberalization, licensing a small number of private banks. These came to be known as New

Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation

banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank( earlier

as UTI Bank) , ICICI Bank and HDFC Bank. This move, along with the rapid growth in

the economy of India, revitalized the banking sector in India, which has seen rapid growth with

strong contribution from all the three sectors of banks, namely, government banks, private banks

and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in the norms for

Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which

could exceed the present cap of 10%,at present it has gone up to 74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time, were used to

the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave

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ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led

to the retail boom in India. People not just demanded more from their banks but also received

more.

Currently (2007), banking in India is generally fairly mature in terms of supply, product range andreach-even though reach in rural India still remains a challenge for the private sector and foreign

banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have

clean, strong and transparent balance sheets relative to other banks in comparable economies in its

region. The Reserve Bank of India is an autonomous body, with minimal pressure from the

government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without

any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its

services sector-the demand for banking services, especially retail banking, mortgages and

investment services are expected to be strong. One may also expect M&as, takeovers, and asset

sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak

Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed

to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any

stake exceeding 5% in the private sector banks would need to be vetted by them.

In recent years critics have charged that the non-government owned banks are too aggressive

in their loan recovery efforts in connection with housing, vehicle and personal loans. There are

press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

Current situation of Banking

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (thatis with the Government of India holding a stake), 31 private banks (these do not have government

stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have

a combined network of over 53,000 branches and 49,000 ATMs. According to a report by ICRA

Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking

industry, with the private and foreign banks holding 18.2% and 6.5% respectively

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Current Recession: How far, How deep?

The ongoing recession in economies worldwide that were supposed to be immune to such

downturns is becoming a serious threat to both the industrialized nations like the US and China

and nations constituting the third world countries like India. No doubt, analysts including

economists laureates have began to expect unusual consequences as they eye every stock going

down and witness market acquiring more instability. Fear of

stakeholders losing their stock values have only added to the

decline. Go by Barack Obama who said in a speech that it

will take another year for the situation to get better,

although added that the worse is yet to come before the

situation gets better.

Recession, in all three forms viz. financial, credit and banking, is not new. Over 150 financial

steeps we have seen since past 50 years of financial history. But the current situation is a far than

similar.

Most financial instabilities and economic crises of past used to originate in developing

nations earlier and G7 (industrialized) nations were then used to assist the victim economies by

providing all suggestions and solutions to break it. Effects on developed nations then were not a

major issue, or comparatively, not an issue at all. But this time, the reverse has happened with the

only difference being that both sides are affected. The current financial crises began in the US and

travelled slowly to affect EU and the eastern and Asian regions.

Dr. D. Subba Rao, RBI General in an interview said that the model of banking that the EU

nations has followed since long is been identified as insufficient and prone to give jerks in case of

instabilities like the current scenario. Privatizations seem to be replaced by the model of banking

we follow here in India. Specifically, India is giving inspiration to EU to adopt Nationalization of

Banking industry and other such industries that govern the economic fulcrum of a nation by larger

proportion.

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The Indian economy has posted an average growth rate of more than 7% in the decade

since 1997, reducing poverty by about 10 percentage points. India achieved 8.5% GDP growth in

2006, 9.0% in 2007, and 7.3% in 2008, significantly expanding production of manufactures. No

doubt, India is capitalizing on its large numbers of well-educated people skilled in the English

language to become a major exporter of software services and software workers. Due to our

liberalization policy that began in 1992 with Dr. Manmohan Singh, the then finance minister, our

economic expansion has helped New Delhi continue to make progress in reducing its federal fiscal

and trade deficit.

What hampers our growth and worries all income groups is the rising scale of inflation.

Besides controlling price and financial stability, enterprises and regulatory bodies such as the SEBI

and autonomous authorities like RBI have to ensure that enough credit goes to the developingsectors such as real estate and inflation is supremely checked. Targeting low and stable inflation is

not easy if fiscal policy is poorly maintained so to devise an optimum fiscal policy is also an

urgent need.

Dr. Subbarao assures in an interview that in India, job cut would never be an issue, however,

companies who are largely dependent on FII and FDI would suffer. What is happening with the

Guangdong province of China is a wide scale consequence of this. The province that account for

over 1/3rd of Chinas international trade has seen a shut of over 2000 factories recently largely

because of no or a bare minimum export.

Of course we would not face a situation like the US as far as job cut is concerned, but there s

nothing to rejoice upon. We also need to turn to Small- and medium-scale enterprises (SMEs)

occupy an important and strategic place to vision an equitable economic growth and development.

Innovation and Entrepreneurship hold the key to enhancing the role of SMEs in improving the

Indian economy.

Enough liquidity into the banking sector has been the first step RBI has rightly taken,

followed by a cut in the Repo rate. What can augment to further stabilize the system would be a

comprehensive stimulus package for the banking sector so that investors may not loose enough

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confidence to worsen the situation. Focus on improving the scale of foreign investment would only

mark a figure into the box. In a situation like the current, when domestic investors themselves are

refraining themselves from real investing or buying a new share, relaxing ECB norms in a hope to

provide a greater foreign investment window only adds a trifling point.

What is needed in context of foreign investment is to building strong measures first to attract

knowledge, innovation and investments from the overseas Indians including NRIs, PIOs and

Overseas Corporate Bodies (OCBs) on same parallels as we invite expect other foreign

investments according to the Foreign Exchange Management Act (FEMA) and Foreign Direct

Investment (FDI) policy.

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CHAPTER-IV

OBJECTIVE-I

OBJECTIVE-II OBJECTIVE-III

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OBJECTIVE - I

SALES PROCESS AT OPERATIONAL LEVEL KNOW YOUR CUSTOMER

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SALES PROCESS

KNOW YOUR CUSTOMER (KYC)

Reserve bank of India has since issued guidelines on KNOW YOUR CUSTOMER & CASH

TRANSACTIONS under section 35(A) of the Banking Regulation Act, 1949 for implementation

by all banks. While existing instructions of RBI would continue to be implemented, new

provisions included in the KYC guidelines have been implemented with effect from 01.11.2002.

Care should be taken that the customers are not inconvenienced in this exercise .

Introduction

KNOW YOUR CUSTOMER (KYC) is the platform on which the banking system operates to

help control financial frauds, identify money laundering and suspicious activities, and for scrutiny

and monitoring of large value transactions. RBI has issued several guidelines for identification of

customers and monitoring of cash transactions.

Various guidelines in this regard are being consolidated here under:

Objective is to establish procedures / system:

To verify the bona-fide identification of individuals / corporate opening an account To monitor high value transactions and transactions of suspicious nature in

accounts.

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The focus of the KYC is on back to basics & adopting an elaborate the

standard for obtaining comprehensive information regarding new (as well as old) customers at the

initial stage.

Sales Process Approach

Every team member will have his own way of doing business or getting his customers.

However there are 4 broad ways which are imperative and should never be ignored. They are:-

Cold Calling

References Tele-Calling Promotions

A right mix will help you get your right customer. This mix can also be called your Sourcing

plan. There has to be a mix of all elements in your strategy of getting a customer. Keep in mind

Cold Callings40%

Promotions10%References

25%

Tele 25%MIX

Cold calling

Promotion

References

Tele

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regular cold calling only helps you build a data base which would help you in getting more

business in the future.

Have a Target for yourself. Keep a few hours away, each day just for cold calling and tele calling.

This will become a part of your routine and you will soon see how you get business with much

more ease than before.

Dont ignore any element of the mix..... Customize it according to your style and convenience.

Steps on a call

The sales call has certain defined steps. Keeping these steps in mind will help us in developing astructured call giving a professional edge to it. These are the following steps:-

Pre call preparation

Its very important to be prepared before call. Depending on the profile of the customer we

are meeting, information on following lines need to be kept in mind.

About his industry

How the transactions are conducted in his| her type of business.

Proprietorship\Partnership

About the product youll want to offer

Approach

Appointmen t: Good morning/Good after noon (greeting) Sir, I am Nagesh (First

name only) from Kotak Mahindra Bank. Thank you for the appointment. I would

like to share/discuss & offer our bank products with /to you.

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Cold calling: Good morning/ Good after noon (greeting) Sir, I am Nagesh (First

name only) from Kotak Mahindra Bank. I would like to share? Discuss our products

with you.

Visiting card

- Offering: Always keep visiting card in the front right pocket. Offer your

card to the customer, preferably with both your hands with the written side

facing him/her.

- Receiving: On receiving the customers card read it, never place it down

without reading it.

Diagnosing

Diagnosing helps us to get to know the customer better. Here we use the strategy of BBF Business

- What type of business he/she is in?(manufacturing, trading, retail etc)

- Nature of business (are you dealing in garments etc)

- How long have he/she has been in this business?

- Is it a partnership or a self-proprietorship?

- What is the turnover of the company?

- Number of employees

- Any other branches if yes where all?

Banking

- What facilities is He /she enjoying?

- What are his/her expectations from the bank?

- How he/she makes his payment?

- Which other places outside Delhi does he/she transact with?

Family

- Where is he/she putting up?

- How many family members does he/she have?

- Who all are there in the family?

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Call process

Dos

- Be very confident while talking to a customer.

- Confidence can only come from experience or preparation.

- If you are new then experience can be replaced by preparation

A. Analysis of Sales process

Sales Process on

1. Personal Loans.

2. Home Loans.

3. Loans against Property.

1. Personal loan sales process

No matter what your financial needs are, our personal loans help you fulfil them.

Our Personal Loans help to make a difference in your life. No matter what your financial needs are

- unexpected expenses, school fees, wedding in the family, home improvement or that long

awaited vacation? Whatever the occasion, our range of Personal Loans can help.

The procedure is simple, documentation is minimal and approval is quick.

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Key Features

Avail loans from Rs.50,000-50 lakh*

Quick Approval & hassle-free processing

Minimal paperwork Flexible repayment options

Repay with easy EMIs

Convenience of service at your doorstep

Features & Benefits

Avail loans from Rs.50, 000 - 50 lakh*: You can avail of a loan from Rs.50, 000 - 50 lakh*

for any purpose based on your income and repayment capacity and fulfil all your financial

needs.

Quick approval: With a Kotak Mahindra Bank Personal Loan, you are not far away from

making your dreams come true. In as less as 72 hours you can turn your dreams into reality.

Minimal paperwork & hassle free processing: Our minimal document requirements leave

you tension and hassle free. Additionally, worries are kept at bay, as no security or

collateral is required.

Flexible repayment options: Our flexible loan tenors range from 12 - 60 months for salariedcustomers and from 12- 36 months for businessmen / professionals, which don't

overburden you with a worry to pay heavy EMIs.

Convenience of service at your doorstep: Our Loans are just a phone call away; you can fix

an appointment with any of our representatives and they could assist you in all your loan

formalities.

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Documentation

Salariedindividuals Professionals Businessmen

Profile

Must be workingfor a Public

Ltd co./

MNC/ large

Pvt Ltd co.

Must be a Doctor (MS, MD,MBBS, BDS) , C.A.,

Architect,

Consultant, Interior

Designer

Must have clean payment

track record of

more than 1 year

of a previous loan.

Age

23 - 58 years 23 - 58 years 23 - 58 years

resident Indian resident Indian resident Indian

Income

Net monthly salary

of Rs.

10,000/-

with no

loans

outstanding

.

Filed IT returns of

Rs.75,000/- or more for the

last 2 years.

Filed IT returns of

Rs.75,000/- or

more for the last 2

years

Minimum

educati

on Graduate Professional degree Graduate

Residence

telepho

ne Required Required Required

Years in city Min 1 year Min 1 year Min 1 year

Total workexperie

nce Min 1 year Min 5 years Min 5 years

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2. Home loan Sales process

Designed to suit your requirements

At Kotak Mahindra Bank, we offer highly customized facilities of availing home loans.

Importantly, we appoint a dedicated manager who takes customers through the entire process,

starting with the filling in of the application forms and culminating in the loan disbursementprocess. This otherwise seemingly difficult process is made simpler and more convenient for the

customer. Sometimes, customers are unable to spare that extra time from their hectic schedules,

and the Bank Doorstep Service makes the home buying process seamless and pleasurable. A

relationship that is happy from the start is extended through the attention the customer gets through

his loan repayment tenure and beyond.

We believe that in order to succeed, we need to offer not only competitive products, but also the

best possible service and value-added features and benefits. In a market where the basic product islargely similar, the differentiator is our ability to understand the customer's need completely and

structure the value-adds appropriately. It is with this thought in mind that we innovate constantly,

based on our interaction with the customer.

Home buying is an emotional decision and one must find the right partner to guide you

through the course.

Key Features

High Eligibility for Businessmen

Doorstep Service

Attractive Interest Rates

Simplified Documentation

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Quicker Turnaround time

Features & Benefits

The key advantages of Kotak Mahindra Bank Home Loans are:

High Eligibility for Businessmen

Doorstep Service

Attractive Interest Rates

Simplified Documentation

Insurance Options to cover your home loans at attractive premium

Quicker Turnaround time

3. Loan against property

Unlock the potential in your property and - benefit with lower interest rates

Unlock the potential in your property by availing a Loan Against Property (LAP). A LAP is a loan

given against the security of your existing property. The benefit is that interest rates on LAP are

generally lower than rates on other consumer loans

Key Features

High loan eligibility for businessmen

Loans amounts ranging from Rs.10 lakh - Rs.3 crore!

Loans against residential as well as commercial properties

Features & Benefits

Funds for all your needs

One can use this loan for a variety of purposes, like funding existing business, debt

consolidation, emergencies, education etc.

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High loan eligibility for businessmen

If you are a businessman, at Kotak we do not evaluate your loan eligibility on the basis of

your financial statements alone. We put our trust in you and your entrepreneurial

judgement, while understanding the nature of your business and related aspects. This

overall understanding helps us work out a financial solution that will match your needs.

And not just that, you can also avail of Kotak Commercial Property Loans that help your

business grow- literally! Our loans help you get that opportunity to expand your business

and develop it to its full potential.

Kotak Commercial Property loans

You can also avail of Kotak Commercial Property loans - that help your business grow- in

the literal sense! Our loans help you get that Commercial space that with provide you the

opportunity to expand your Business and develop it to its full potential.

Loans against residential as well as commercial properties

Loan against property facility is available against your residential as well as commercial

properties, for loan amounts ranging from Rs.10 lakh to Rs.3 crores.

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OBJECTIVE-II SALES INCENTIVE STRUCTURE

SALES INCENTIVE STRUCTURE

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Sales Incentive Structure

Profile of Kotak team member

Kotak team member should be perceived out

standing in teams of skills, knowledge, experience

and personal characteristics

SKILLS

Listening Written and verbal communication Persuasion Analytical Resolute Negotiations Time Management Skills

A team member is not only a sales executive but is a representative of the bank. When he meets a

customer he is representing the bank. He is Kotak to the customer. What a customer thinks about

Kotak would be related to how the sales person has dealt with him/her.

Sales Force Loyalty Program

What is Kotak Race?

Kotak Program aims to have a Time Bound, Automatic, Transparent, Structured, Performance

Based, and Plan which will recognize and Reward consistent performers and Offer them Career

Enhancements Opportunities within the Organization

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Kotak RACE Motto

RACE is targeted at the Sales Team Members and is a Recognition and Career Enhancement

program which works on four basic principles of

Passion, Pride, Prosperity & Progress.

Passion to Perform Pride in belonging to a winning team Path to Progress in your career Prosperity in your life through attractive rewards and growth

The RACE Objectives

To lay down the expected Standards of Perform