1.1 OVERVIEW OF INDUSTRY AS A WHOLE:-
Financial services refer to services provided by the finance
industry. The finance industry encompasses a broad range of
organizations that deal with the management of money. Among
these organizations are credit unions, banks, credit card companies,
insurance companies, consumer finance companies, stock
brokerages, investment funds and some government sponsored
enterprises. As of 2004, the financial services industry represented
20% of the market capitalization of the S&P 500 in the United
States.
According to the Global 2000 (annual report by Forbes), seven of
the world’s top 10 companies belonged to the financial industry.
These included Citigroup, Bank of America, HSBC Holdings and
JPMorgan Chase. Their combined revenues in 2007 were worth
$645 billion, down from the 2006 high of $785 billion.
According to the Fortune 500 rankings, in 2006 financial services
generated $257 billion in profits, a third of total Fortune 500
profits. In 2008, however, they lost a staggering $213 billion, a
total swing of $470 billion. Big players on the list, such as
Citigroup and Bank of America, may only be alive today thanks to
government money.
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The finance industry is an industry in itself as well as an ancillary
that supports other industries. Trade and commerce across the
world would come to a standstill if there was no means to fund,
pay and protect the transactions, hence the need for governments to
support the financial services industry when companies that are
‘too big to fail’ are close to collapse.
INDIAN FINANCE INDUSTRY
Financial services organizations are striving to achieve
increasingly ambitious profit and growth targets against a
background of heightened risk, regulation and market pressures.
Customer needs and expectations are evolving in the face of
increasing personal wealth, more private funding of pensions and
health care and the desire for ever more accessible and
personalized financial products and services. In turn, intense
competition has squeezed industry margins and forced
organizations to cut costs while still seeking to enhance the quality
of client choice and service. The battle for talent is also heating up
as companies seek to enhance innovation, customer loyalty and
investmentreturns.
The corollary of this market evolution is increasing risk as
products become more complex, organizations more diffuse and
2
the business environment ever more uncertain. Regulation is also
tightening in the wake of public and government pressure for
improved governance, transparency and accountability.
In this environment, the winners will be companies that can turn
the challenges into opportunities to build stronger and more
enduring customer relationships; sharpen process efficiency;
unlock talent and creativity; use improved risk management
processes to deliver more sustainable returns; and use new
regulatory demands as a catalyst for strengthening the business and
enhancing market confidence.
The Automotive industry in India is one of the largest in the world
and one of the fastest growing globally. India manufactures over
17.5 million vehicles (including 2 wheeled and 4 wheeled) and
exports about 2.33 million every year. It is the world's second
largest manufacturer of motorcycles, with annual sales exceeding
8.5 million in 2009. India's passenger car and commercial vehicle
manufacturing industry is the seventh largest in the world, with an
annual production of more than 3.7 million units in 2010.
According to recent reports, India is set to overtake Brazil to
become the sixth largest passenger vehicle producer in the world,
growing 16-18 per cent to sell around three million units in the
course of 2011-12. In 2009, India emerged as Asia's fourth largest
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exporter of passenger cars, behind Japan, South Korea, and
Thailand.
As of 2010, India is home to 40 million passenger vehicles and
more than 3.7 million automotive vehicles were produced in India
in 2010 (an increase of 33.9%), making the country the second
fastest growing automobile market in the world. According to the
Society of Indian Automobile Manufacturers, annual car sales are
projected to increase up to 5 million vehicles by 2015 and more
than 9 million by 2020. By 2050, the country is expected to top the
world in car volumes with approximately 611 million vehicles on
the nation's roads.
A chunk of India's car manufacturing industry is based in and
around Chennai, also known as the "Detroit of India" with the
India operations of BMW, Ford, Hyundai and Nissan
headquartered in the city. Chennai accounts for 60 per cent of the
country's automotive exports. Gurgaon and Manesar in Haryana
are hubs where all of the Maruti Suzuki cars in India are
manufactured. The Chakan corridor near Pune, Maharashtra is
another vehicular production hub with companies like General
Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata
Motors, Mercedes Benz, Fiat and Force Motors having assembly
plants in the area. Ahmedabad with the Tata Nano plant, Halol
with General Motors, Aurangabad with Audi, Kolkata with
4
Hindustan Motors, Noida with Honda and Bengaluru with Toyota
are some of the other automotive manufacturing regions around the
country.
FINANCE INDUSTRY IN KERALA
The most essential element in the process of development and
growth of the country is finance. The economy of a country
becomes crippled without the flow of finance and the economic
growth is stunted. Monitory resources can be channelized only
with the help of a proper financial infrastructure. An effective
financial system in the form of banks and financial institutions
offer economical lending and borrowing.
Kerala boasts of a well-developed financial infrastructure. With
progressing time Kerala financial system has attained a high
benchmark. There are many prominent participants in the finance
sector in kerala . They includes Kotak Mahindra Prime Limited,
HDFC, Sundaram Finance and so on.
INDUSTRY ANALYSIS
KEY PLAYERS IN FINANCE INDUSTRY
Indian Automobile Loan Industry involves a lot of credit providers.
It is because of Indian automobile market is one of the fast
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growing largest markets in the world. Compared with the European
market, American market and the Japanese market, the specialty of
Indian market is that it accepts all price range of vehicles .On the
basis of nature of business, automobile car providers are mainly
classified as follows:
MAJOR PLAYERS
The major players of the Finance Industry can be categorized into
2 groups. They are as shown in Fig 2-1 :
Fig -1 MAJOR PLAYERS IN FINANCE INDUSTRY
Non-Banking Financial Institutions
Banking Financial Institutions
Major players
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BANKING AND FINANCIAL INSTITUTIONS:
There are many Banking and Financial institutions in India. The
major institutions among them are stated in Tab-1:
Tab-1 BANKING AND FINANCIAL INSTITUTIONS IN
INDIA
LEADING NATIONAL BANKS
LEADING PRIVATE BANKS
State Bank group ICICI Bank
Axis Banks HDFC Bank
Union Bank Kotak Mahindra Prime Limited
Saraswat Coperative Bank Tata Motors finance Limited
Standard Chartered Bank Financial Services Company of Fiat
Citi Bank
Citicorp MarutI
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Sundaram Finance
Associate Finance
COMPETITOR ANALYSIS
The industry holds a number of efficient and eminent competitors.
The major competitor involves:
ICICI Bank.
HDFC Bank.
Reliance Capital Limited.
Axis Bank.
State Bank Group.
Mahindra Finance.
Co-operative Bank.
KSFE.
Sundaram Finance.
South Indian Bank Limited.
The financial statuses of various competitors are:
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Tab -2 COMPETOTOR’S STATUS
Last Price
Market Cap.
(Rs. cr.)
Net InterestIncome
Net Profit
Total Assets
ICICI Bank
1,060.20 122,110.91 25,974.05 5,151.38 363,399.71
HDFC Bank
2,559.15 119,058.23 19,928.21 3,926.39 277,352.61
Axis Bank 1,305.95 53,789.58 15,154.81 3,388.49 242,713.37
Kotak Mahindra
480.90 35,436.15 4,303.56 818.18 50,850.66
IndusInd Bank
287.50 13,396.64 3,589.36 577.32 45,635.85
YES BANK
322.25 11,186.82 4,041.74 727.13 59,007.00
Federal Bank
460.55 7,873.78 4,052.03 587.08 43,675.61
Karur Vysya
420.20 4,913.82 2,217.69 415.59 21,993.49
JK Bank 849.20 4,116.73 3,713.13 615.20 50,508.15
ING Vysya Bank
328.35 3,972.60 2,694.06 318.65 33,880.24
KMB KMF price KMB
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Tab -3 COMPARISONS WITH COMPETITORS
Balance Sheet
Kotak Mahindr
a
ICICI Bank
HDFC Bank
Axis Bank
Mar '11 Mar '10 Mar '11 Mar '11Capital and Liabilities:Total Share Capital
368.44 1,114.89 465.23 410.55
Equity Share Capital
368.44 1,114.89 465.23 410.55
Share Application Money
0.00 0.00 0.00 0.00
Preference Share Capital
0.00 0.00 0.00 0.00
Reserves 6,464.95 50,503.48 24,914.04 18,588.28Revaluation Reserves
0.00 0.00 0.00 0.00
Net Worth 6,833.39 51,618.37 25,379.27 18,998.83Deposits 29,260.97 202,016.6
0208,586.4
1189,237.8
0Borrowings 11,723.95 94,263.57 14,394.06 26,267.88Total Debt 40,984.92 296,280.1
7222,980.4
7215,505.6
8Other Liabilities & Provisions
3,032.36 15,501.18 28,992.86 8,208.86
Total Liabilities
50,850.67 363,399.72
277,352.60
242,713.37
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Kotak Mahindra
ICICI Bank
HDFC Bank
Axis Bank
Mar '11 Mar '10 Mar '11 Mar '11AssetsCash & Balances with RBI
2,107.72 27,514.29 25,100.82 13,886.16
Balance with Banks, Money at Call
363.26 11,359.40 4,568.02 7,522.49
Advances 29,329.31 181,205.60
159,982.67
142,407.83
Investments 17,121.44 120,892.80
70,929.37 71,991.62
Gross Block 831.80 7,114.12 5,244.21 3,426.49Accumulated Depreciation
406.20 3,901.43 3,073.56 1,176.03
Net Block 425.60 3,212.69 2,170.65 2,250.46Capital Work In Progress
0.00 0.00 0.00 22.69
Other Assets
1,503.33 19,214.93 14,601.08 4,632.12
Total Assets 50,850.66 363,399.71
277,352.61
242,713.37
Contingent Liabilities
12,291.30 694,948.84
559,681.87
429,069.63
Bills for collection
4,470.06 38,597.36 28,869.10 57,400.80
Book Value (Rs)
92.74 463.01 545.53 462.77
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1.2 BUSINESS PERFORMANCES:-
PRODUCT MIX
Product Mix contains mainly the following 2 contents :
1. High yield products where the risk is high like :
- Personal loan.
- Used Car Financing.
2. Low yield products where the risk is low like :
- New car financing.
SCHEMES
A) Margin Money Scheme –
In this scheme KMPL part finance the car from
65% - 90% for certain models. The customer will have to make
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down payment for the margin amount. The financed amount can be
repaid through Equated Monthly Installments.
B) Advanced EMI Scheme –
In this scheme the customer has to pay few
installments upfront. The balance is payable through EMI. It helps
the customer to pay off the loan faster.
CUSTOMERS OF KMPL
The customers of KMPL are of two types :
1. External customers: includes the customers and dealers.
2. Internal customers: includes all the employees.
MARKET SEGMENTATION
It can be in two ways. They are product wise segmentation and
customer wise segmentation.
Product wise segmentation like luxury cars, premium cars,
standard cars, new cars and used cars. Customer wise segmentation
like government, employees. Businessmen. NRIs etc.
MANAGEMENT STYLE OF KOTAK (Working of MBO)
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The entire working of Kotak Mahindra is based on MBO
(management by objectives). In each quarter every division has to
decide its own objectives and targets. This target is fixed by
superiors and subordinates jointly. So each person has Key Results
Area (KRA ) and that person is reasonable for achieving his
targets. KRA can be function wise and target wise. Sometimes they
may have to redefine KRA’s due to the impact of external
environment. For example, if KRA is defined on the basis of
expectation that the industry will grow by 10 and it may decline by
that much percentage instead of growing. In such cases KRA’s will
be redefined. Senior sales manager is responsible for state wise
sales target and Senior Sales Executive is responsible for
functional targets. In each quarter company makes appraisal on the
performance of that quarter. It follows 360 degree methods of
appraisal. So each one will be evaluated by himself, superiors and
subordinates. As per the appraisal they categorize the
performances as mentioned below:
APPRAISAL CRITERIA
Outstanding – 150%
above target
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Exeeds expectation – 100%-
150% above target
Meets expectation – 80%-
100% of target
Below expectations – below
80% of target
The salary and incentives in Kotak is based on performance. So
outstanding and exceeds expectation performance will invite
higher salary, incentives and promotion, performance below
expectation will be counted as bad performance.
1.3 LIMITATIONS:-
The following are the limitations that are observed in the study.
The survey is subjected to the bias and prejudius of the
respondents. Hence, 100% accuracy cannot be assured.
The researcher was carried out in a short span of time, where
in the researcher could not widen the study.
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The study could not be generalized due to the fact that researcher
adapted personal interview method.
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1.4 OBJECTIVES:-
1. Measure job satisfaction of the employees of Kotak Mahindra.
2. To assess the general attitude of the employees towards Kotak
Mahindra.
3. To assess the level of commitment across process and facilities.
4. To analyse the strengths and weakness of Kotak Mahindra as an
organization
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1.5 RESEARCH METHODOLOGY:-
Research can be defined to be search for knowledge or any
systematic investigation to establish facts. The primary purpose for
applied research is discovering interpreting and the development of
methods and systems for the advancement of human knowledge on a
wide variety of scientific matters of our world and the universe.
Research Methodology is initiated before undertaking the research
and a foundation was laid in form of a research design, sampling,
method of data collection and different analysis technique.
Research Methodology can be defined as:
1) The analysis of the principles of methods, rules, and postulates
employed by a discipline;
2) The systematic study of methods that are, can be, or have been
applied within a discipline or a particular procedure or set of
procedures
POPULATION
The main emphasis of the study was on employees working in
Kotak Mahindra.
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RESEARC DESIGN
A research design is considered as the framework or plan for a study
that guides as well as helps in the data collection and analysis of
data. Research can classify in one of three categories:
Exploratory research
Descriptive research
Causal research
These classifications are made according to the objective of the
research. In some cases the research will fall into one of these
categories, but in other cases different phases of the same research
project will fall into different categories.
● Exploratory research has the goal of formulating problems more
precisely, clarifying concepts, gathering explanations, gaining
insight, eliminating impractical ideas, and forming hypotheses.
Exploratory research can be performed using a literature search,
surveying certain people about their experiences, focus groups, and
case studies. When surveying people, exploratory research studies
would not try to acquire a representative sample, but rather, seek to
interview those who are knowledgeable and who might be able to
provide insight concerning the relationship among variables. Case
studies can include contrasting situations or benchmarking against
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an organization known for its excellence. Exploratory research may
develop hypotheses, but it does not seek to test them. Exploratory
research is characterized by its flexibility.
● Descriptive research is more rigid than exploratory research and
seeks to describe users of a product, determine the proportion of the
population that uses a product, or predict future demand for a
product. As opposed to exploratory research, descriptive research
should define questions, people surveyed, and the method of
analysis prior to beginning data collection. In other words, the who,
what, where, when, why, and how aspects of the research should be
defined. Such preparation allows one the opportunity to make any
required changes before the costly process of data collection has
begun. There are two basic types of descriptive research:
longitudinal studies and cross-sectional studies. Longitudinal studies
are time series analyses that make repeated measurements of the
same individuals, thus allowing one to monitor behaviour such as
brand-switching. However, longitudinal studies are not necessarily
representative since many people may refuse to participate because
of the commitment required. Cross-sectional studies sample the
population to make measurements at a specific point in time. A
special type of cross-sectional analysis is a cohort analysis, which
tracks an aggregate of individuals who experience the same event
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within the same time interval over time. Cohort analyses are useful
for long-term forecasting of product demand.
● Causal research seeks to find cause and effect relationships
between variables. It accomplishes this goal through laboratory and
field experiments.
The research associated to my project is DESCRIPITIVE
RESEARCH.
SAMPLE SIZE
An Employee-based survey was conducted in which 40 people were
asked to fill the questionnaire. I will be using statistical method for
sample size determination.
RESEARCH INSTRUMENTS
The researcher has used a structured questionnaire as a research
instrument tool which consists of open ended questions, multiple
choice questions and dichotomous questions in order to get data.
Thus, the questionnaire is the data collection instrument used in the
study. All the questions in the questionnaire are organized in such
ways that elicit all the relevant information that is needed for the
study.
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SOURCES OF INFORMATION
This project depends upon the primary as well as secondary sources
which are as follows:
Primary Sources: Primary data are data gathered for a specific
purpose or for a specific research project. Primary source, (also
called original source), is a term used in a number of disciplines to
describe source material that is closest to the person, information,
period, or idea being studied.
Secondary Sources: Secondary data are data that were collected for
another purpose and already exist somewhere. In library and
information science, historiography and other areas of scholarship, a
secondary source is a document or recording that relates or discusses
information originally presented elsewhere. A secondary source
contrasts with a primary source, which is an original source of the
information being discussed. Secondary sources involve
generalization, analysis, synthesis, interpretation, or evaluation of
the original information
Most of the data collected by the researcher is PRIMARY DATA
through personal interviews, where the researcher and the
respondents operate face-to-face.
DATA COLLECTION TOOLS
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Questionnaire: A questionnaire consists of a set of questions
presented to respondents for their answers. Because of its flexibility,
the questionnaire is by far the most common instrument used to
collect primary data. Questionnaires need to be carefully developed,
tested, and debugged before they are administered on a large scale.
STASTICAL TOOL
The statistical tools used for analysing the data collected are
percentage method, bar diagrams and pie chart.
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2.1 PROFILE OF THE ORGANIZATION:-
Kotak Mahindra is one of India's leading financial organizations,
offering a wide range of financial services 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 diverse financial needs of individuals and corporate.
The group has a net worth of over Rs. 6,523 crore and has a
distribution network of branches, franchisees, representative
offices and satellite offices across cities and towns in India and
offices in New York, London, San Francisco, Dubai, Mauritius and
Singapore. The Group services around 6,2 million customers
accounts.
BOARD OF DIRECTORS
BOARD OF DIRECTORS OF KOTAK MAHINDRA
Mr. K.M.Gherda - Executive Chairman
Mr. Uday Kotak - Executive Vice
Chairman and Managing
Director
Mr. Anand Mahindra - Co Promoter of Kotak
Mahindra Bank And
Vice Chairman and
Managing Director of
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Mahindra and Mahindra
Mr. Cyril Shroff - Co Promoter
Mr. Pradeep N Kotak - Agri Division of Kotak
and CompanyLimited
Mr. Shivaji Dam - Managing Director
Kotak Mahindra Old
Mutual Life Insurance
Limited.
Mr. C.Jayaram Executive Director
HISTORY:-
Kotak Mahindra group was started in the year 1985 as Kotak
Capital Management Finance Limited. Uday Kotak Sidney and
Pinto are the promoters of the company. Industrialist Harshath
Mahindra and Anand Mahindra took a stake in 1986. After that the
company changed its name to Kotak Mahindra Finance Limited.
1986 - Kotak Mahindra Finance limited starts the business of Bill
Discounting.
1987 - Kotak Mahindra Finance Limited enters the Lease and Hire
Purchase market.
1990 - The Auto Finance division is started.
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1991 - The Investment Banking Division is started. Takes over
FICOM, one of India’s largest financial retail marketing networks .
1992 - Enters the Funds Syndication sector.
1995 Brokerage and Distribution businesses incorporated into a
separate company - Kotak Securities. Investment Banking division
incorporated into a separate company - Kotak Mahindra Capital
Company .
1996 - The Auto Finance Business is hived off into a separate
company - Kotak Mahindra Primus Limited. Kotak Mahindra takes
a significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles. The launch of Matrix Information
Services Limited marks the Group’s entry into information
distribution.
1998 - Enters the mutual fund market with the launch of Kotak
Mahindra Asset Management Company.
2000 - Kotak Mahindra ties up with Old Mutual plc. for the
Life Insurance business. Kotak Securities launches kotakstreet.com
-itson-linebroking
site. Formal commencement of private equity activity through
setting up of Kotak Mahindra Venture Capital Fund.
26
2003 - Kotak Mahindra Finance Ltd. Converts to bank
Kotak Mahindra Finance Limited (KMFL), the Non-Banking
Financial Corporation (NBFC) started its operations in the year
1985 as car financers and since then has come a long way. Kotak
Mahindra Finance Limited was converted into a bank as a
conglomeration of six entities. They are Kotak Mahindra Capital
Company( Investment Banking ), Kotak Securities (broking),
Kotak Mahindra Limited (Auto finance), Kotak Mahindra Asset
Management (Mutual funds) old Mutual Kotak Mahindra (Life
Insurance) and Kotak Mahindra Primus ( Auto Finance) .
Kotak Group
The ventures of Kotak group involves the following :
Kotak Mahindra Bank Limited.
Kotak Mahindra Capital Company.
Kotak Mahindra Old Mutual Life Insurance Limited.
Kotak Mahindra Asset Management Company Limited.
Kotak International Business.
KOTAK MAHINDRA BANK LIMITED
Kotak Mahindra Bank is the flagship company of the Kotak group.
The company was incorporated as Kotak Mahindra Finance
Company Limited in the year 1985. In February 1003, the
27
company was given the license to carry on banking business by
Reserve Bank of India ( RBI). It was the first company to convert
to a bank. With the conversion into a bank, retail liabilities ,
treasury and corporate banking segments have been also added
company to convert to bank. With the conversion into a bank,
retail liabilities, treasury and corporate banking segments have also
been added.
The products of the bank include the following:
Retail Banking.
Commercial Vehicles.
Home Loans.
Personal Loans.
Wealth Management.
Corporate Banking.
Treasury.
KOTAK MAHINDRA CAPITAL COMPANY LIMITED
Kotak Mahindra Capital Company Limited (KMCO) , India’s
premier investment bank is a strategic joint venture between Kotak
Mahindra Bank ( holding 55%) and Gold Sachs ( holding 25% )
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KMCC offers full services investment banking solutions to its
clients by combining the global reach and expertise of the
Goldman Sachs and the local knowledge and skills of Kotak
Mahindra.
KMCC identifies structures and executes diverse transactions and
provide innovative solutions to corporate and government
enterprises. Transactions include mergers and acquisitions ,
divestitures and issuance and debt and equity.
Within mergers and acquisitions, KMCC structures and executes a
wide range of domestic and cross border transactions including
acquisitions divestitures merger joint venture corporate
restructuring tender offers and defences against unsolicited
takeover attempts.
KOTAK SECURITIES LIMITED
Kotak Securities limited , a strategic joint venture between Kotak
Mahindra Bank Limited ( holding 75% ) and Goldman Sachs
( holding 25%) is one of India’s largest brokerage and securities
distribution house in India.
The Private Client Group (PCG) of the company provides value
added investment advisory services to the high net worth
individuals. NRI investors, trusts , corporate and Banks. The
investment product range offered by PCG covers investment and
29
trading, equity derivatives, portfolio management IPO’s and
Mutual Funds.
Kotak Securities is also a Depository Participant with National
Securities Depository limited ( NSDL) and Central Depository
Services Limited (CDSL) providing dual benefit service wherein
the investors can use the brokerage services of the company for
executing the transactions and the depository services for settling
them.
OM KOTAK MAHINDRA LIFE INSURANCE LIMITED:-
OM Kotak Mahindra Life Insurance company limited ( OMKM)
is a joint venture between Kotak Mahindra Bank ( holding 74%)
and Old Mutual ( holding 26%). Old Mutual Plc, a UK based
financial services group with 158 years of experience in insurance
and banking is a fortune 500 company listed London Stock
Exchange.
OMKM offers a wide range of innovative life insurance products
aimed at making the Indian consumer financially independent. It
operates through a wide networks of 40 branches across the
country. The company has 14 products including 3 group insurance
products and 7 riders that can be added into the basic policy. The
company now has a full range of products from pure insurance to
30
saving products and market-linked products from children’s
insurance to retirement solutions.
KOTAK MAHINDRA ASSET MANAGEMENT COMPANY
LIMITED:-
Kotak Mahindra Asset Management Company ( KMAMC) is the
asset manager for Kotak Mutual Fund ( KMMF), which started
operations in December 1998, manages assets of over Rs. 3900
crore contributed investors in various schemes. It operates through
23 branches all over the country.
KMMF offers schemes catering to investors with varying risk
appetites and return desires. It was the first house in the country to
launch a dedicated gilt scheme investing only in government
securities.
The Mutual Fund’s mission is to offer a family of schemes for
building investor wealth. The family of schemes compromise of
diverse portfolios to suit different risk/ reward expectations of
investors.
KOTAK MAHINDRA PRIME LIMITED:-
Retail Finance in commercial vehicles, cars and personal loan is a
traditional area of strength for Kotak Mahindra . As for most
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finance companies, Kotak Mahindra has invested a considerable
amount of resources in vehicle financing. Kotak Primus the car-
financing unit is more impressive.
Kotak Mahindra Prime Limited (KMPL) started with a joint
venture between Kotak Mahindra Bank Limited (KMBL) and Ford
Credit International Inc. (USA) (FCII) formed to finance all non-
Ford passenger vehicles. The joint Venture is dedicated to
financing and supporting automotive and automotive related
manufacturers, dealers and retail customers. The Company was
incorporated on 28th February 1996 and commenced its operations
on 1st November 1996. After incorporation and subsequent
commencement of the business by the joint venture. The business
of financing non-Ford passenger cars and its related activities,
previously carried out by KMFL are being undertaken by KMPL.
In 2007 Kotak Mahindra Prime Limited because Kotak Mahindra
Prime Limited and the Joint Venture has been cancelled.
KMPL has retained its market leadership by developing and
maintaining close relationship with manufacturers, dealers, direct
marketing associates and individual customers. Currently KMPL is
the preferred financier for Hyundai. Mercedes Benz , Toyota,
General Motors, Honda and Fiat. Additionally , it has good
relationship and market share with Maruti, Telco and M & M.
32
Highlights of the Company:-
The company started with a joint venture between Kotak
Mahindra Bank Limited ( formerly, Kotak Mahindra Finance
Limited ) which holds 60 % of the equity share capital and
Ford Credit International Inc., USA that holds the balance 40
% of the equity and 2007 it cancellers the joint venture.
The company has been a significant player in the car finance
market in the last 10 years.
The company has been able to maintain increased
disbursements year over year due to increased geographic
reach and improved depth of distribution.
The company gives inventory funding to dealers.
The company has a distribution network across 53 locations
in the country covering over 100 towns.
The company enjoys good relationship with major
automobile manufacturers.
The delinquency ratios of the company are the best among
the auto finance industry.
The company has been consistently improving its profits
since the last three years.
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The existing major competitors in the car finance are:
Reliance Capital Limited.
Axis Bank.
HDFC Bank Limited.
ICICI Bank Limited.
Federal Bank.
State Bank Of India.
Sundaram Finance.
Mahindra and Mahindra Finance.
Kotak Cochin division started its operations in 1997. This Cochin
Branch office operates as head office to other branches in Kerala.
It controls the entire operations in the state. It has four branches in
Kerala. They are in Kottayam, Trichur, Calicut and
Thiruvananthapuram. Trichur and Calicut branch started its
operations in 1998 and Thiruvananthapuram branch started in
1999.
Features :
It is a profit Centre of KMPL.
The business attitude towards customers is based on IRR.
High level of automation.
It controls the entire business of Kerala.
Profit Centre
34
Cochin branch is a profit centre of KMPL. Since it’s a profit centre
it can decide its own lending rates. The Cochin division decides the
rates and sends it to the corporate office Mumbai for approval. The
corporate office may approve or disapprove it and inform the cent,
which it takes reasonable. It is only in the case of minimum
lending rate. Highest rate can go up to any figure. The Corporate
Office’s decision is based on certain parameters. They are:
Operations cost.
Delinquency rate.
Margin ( difference between lending rate and borrowing rate)
Product mix.
VISION
The vision of KMPL is:
The Global Indian Financial Services Brand | Our customers will
enjoy the benefits of dealing with a global Indian brand that best
understands their needs and delivers customized pragmatic
solutions across multiple platforms. We will be a world class
Indian Financial service group. Our technology and best practices
will be benchmarked along international lines while our
understanding of customers will be uniquely Indian. We will be
more than a repository of our customers’ savings. We, the group,
35
will be a single window to every financial service in customer’s
universe.
The most preferred employer in financial services | A culture of
empowerment and a spirit of enterprise attracts bright minds with
an entrepreneurial streak to join us and stay with us. Working with
a home-grown, professionally- managed company, which has
partnership with international leaders, gives our people a
perspective that in universal as well as unique.
The most trusted financial services company | we will create an
ethos of trust across all our constituents. Adhering to high
standards of compliance and corporate governance will be an
integral part of building trust. Value Creation | Value Creation
rather than size alone will be our business driver.
PRODUCTS AND SERVICES
New Car Financing.
Used Car Financing.
Personal Loan.
Refinancing.
Insurance Services.
New Car Financing :
It is the financing of new cars and maximum funding is 100 %.
36
Used Car Financing :
It is for financing the second hand or used cars and the
maximum funding available is 80 %.
Personal loan :
Only existing customers can avail this facility. Those
customers who paid over rage half of the total installments
and did not make default in the payments of EMI will get
personal loans.
Refinancing :
If the customer is a good customer and does not have
a background of committing defaults, he will get refinancing
facility after the payment of loan or when the hypothecation
is over.
Insurance :
This is a service by Kotak to its own customers and
others also. Kotak works as an intermediary or an agent
between the client and the insurance company. Kotak has tie
up with 3 insurance companies. They are HDFC CHUBB ,
Royal Sundaram , and Oriental Insurance. Through this
service the non-customers of Kotak will become its
customers. For the customers it makes the processing very
easy not only at the time of opening the insurance but also
when the case of claim occurs. Kotak gets commission for
37
this service. It collects premium from customers and pay it to
the insurance company. This service is for cars as well as for
the two-wheelers also.
KOTAK MAHINDRA PRIME LIMITED
Kotak Mahindra Prime Limited is a subsidiary of Kotak Mahindra
Bank Limited primarily formed to finance all passenger vehicles.
KMPL is India’s largest car finance company. The company is
dedicated to financing and supporting the automobile form of loan
for the entire range of passenger cars, multi utility vehicles and
pre-owned cars. The company also offers inventory funding and
infrastructure funding to car dealers. KMPL has preferred financer
relationship with the various car manufacturers in India such as
General Motors, Honda, Hyundai, Maruti, Toyota , M & M etc.
KMPL has a robust delivery platform which is critical for a
sustained growth.
PRODUCT PROFILE
Kotak Car Finance is one of the big player in the area of car
finance. They extend finance to all models of cars. Kotak group
extends finance to all cars through their company, KMPL.
38
Types of Services
KMPL has different types of services like:
1. Car Finance.
2. Dealer Finance.
3. Inventory Funding.
CAR FINANCE
KMPL offers a very flexible scheme to suit our needs, a hassle free
documentation and quick processing. This causes the company’s
relations with the car manufacturers to give the maximum benefit
of the most attractive deals in the market.
“our commitment is to get you into the driver’s seat quickly while
giving you some really smart options to choose from”
KMPL offers:
The widest range of new and pre-owned cars.
Attractive interest rate.
Flexible schemes.
Speedy loan processing.
39
New Car Finance
The company offers loans up to 90 % of the ex-showroom price
and flexible repayment theories as per the customer’s convenience.
Margin money scheme
The company provide finance for the acquisition of new cars up to
90% of the invoice value for certain models. The customer should
pay the margin money (invoice value minus the finance amount) to
the dealer directly. He also has an option to pay the margin of
KMPL upon which we would release the entire invoice value to
the dealer.
Set up scheme.
Increase in EMI after every year, 6 months or
quarterly( depending upon your needs )
Best suited for the people who want luxury car experience.
Make payment on time with your growing income ( starting
with low EMI’s in the early period of repayment)
Low EMI, Balloon Scheme.
40
10%-25% of the cost of the car to be paid as last EMI.
Reduced EMI for the entire tenure.
Best for customers who want to dispose off their vehicle at
the end of the tenure and are looking at affordable EMIs
during the tenure.
Advance EMI Scheme
Make the payments of few monthly installments upfront.
Balance payable through EMIs.
Repay your loan much faster with the advance installments.
Used Car Finance
Owning a car can be a simple, easy and reliable experience with
KMPL used car finance. The company offers up to 90% funding of
the car value. The customers may also avail finance against your
existing car.
Pre-approved Loan
Low ticket size loans:
- Loan amount up to 1.5 lacs.
41
- Minimum documentation.
Preferred Segment Loan
- Loan amount between 1.5 – 15 lacs.
- Hassle free processing.
Funding up to 85% with maximum tenure of 60 months.
Approve your own loan
For salaried employees:
- Monthly installments equal 40 % of net salary.
- Loan amount equals up to 3 times of your annual salary.
Cash against your car.
Avail this loan by pledging your existing car which is free from
any loan/ hypothecation.
Takeover of your existing car loan and generate cash
It’s a loan taken over from the bank where the foreclosure amount
is lesser than what KMPL actually funds on the assets. That is how
the cash is generated and the customer get more than 100%
finance.
# Dealer Finance
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KMPL has vast experience in providing comprehensive solution
to the wholesale funding requirement of over 125 automobile
dealers across the various manufacturers. KMPL offers superlative
experience to automobile dealers by catering to their entire
spectrum of financial requirement through ‘Single Window’ . This
results in better response time to KMPL’s esteemed customers.
The various financial options available to the KMPL customers
are:
- Inventory Funding
- Project Funding – Term Loans.
- Setting up of CC/BG/LC through Kotak Mahindra Bank
Limited.
KMPL also offers value added services such as Dealer Finance
Restructuring and Specific Advisory Services to Dealers.
Term Loan Options
43
Term loan is available to automobile dealers for setting up of new
dealership expansion / renovation of showroom / workshop /
supplementary working capital requirement.
Equipment term loan is available to automobile dealers for
purchasing the equipments for their service centre.
Amortizing term loans is available to automobile dealers for
purchasing the properties for The business expansions and new
dealerships.
Working capital term loan is available to automobile dealers to
find core working capital / supplement the working capital
requirements.
# Inventory Funding
Inventory Funding is available to automobile dealers to finance
the working capital requirement.
Retail linked trade Advance :
Dealer inventory funding facility is linked to retail business source
through dealership counter. It is unsecured / semi-secured
advances. Generally the exposure is capped at Rs. 1 crore based on
the dealer’s working capital requirement and credit assessment.
Wholesale finance facility :
44
It is a semi secured advance available to automobile dealers and is
linked with the Retail business. The maximum exposure under this
is Rs. 5 Crore based on the dealers working capital requirement
and credit assessment.
Floor Finance / Single Payment Gateway Plan :
This caters to the entire working capital requirements. The facility
is similar to the Cash Credit / Over Draft products of banks. The
credit exposure is based on the dealers working capital requirement
of credit assessment. Under this products , KMPL is the exclusive
financier for inventory funding needs of the dealership.
Criteria for applying loan through KMPL
The following is the list stating the person, trust or companies who
can avail loan from KMPL:
- Salaried individuals in the age group of 21 years – 65 years.
- Self-employed individuals in the age group of 21 years – 65
years.
- Partnership Firms
- Public and Private Limited Companies.
- HUF’s and Trusts.
Salaried Individuals
45
Eligibility criteria:
- Minimum age of applicant must be 21 years.
- Maximum age of applicant at the time of loan maturity is 65
years.
- Minimum income should be at least Rs. 1,00,000 per annum.
- Minimum employment of 6 months.
Documents required.
Identity proof - passport , PAN card, election ID card or
license.
Income Proof – latest salary slip with form 16.
Address proof - ration card, license, ID card, passport,
phone bill or PAN card.
Salary Bank Statement.
Self Employed
Eligibility Criteria
- Minimum age of the applicant must be 21 years.
- Maximum age of applicant at the time of loan maturity must
be 65 years.
- Minimum employment – at least 2 years in business.
Documents Required.
Identity proof - passport, PAN card, election ID card or
license.
46
Income Proof – latest ITR
Address proof - ration card , license, ID card, passport, phone
bill or PAN card.
Business Bank Statement
Application Process.
The process of applying loan in KMPL is a 7 steps process. The
steps involved are :
1. Getting Information :
The prospect can get the information on KMPL in a
number of ways. This includes:
- Send Mail to [email protected]
- Visit KMPL or call up any Branch Office.
- Apply on-line.
- Can send SMS CF < followed by name of your city > at
5675788.
2. Receiving KMPL office :
Kotak offers tailor made schemes based on the customer needs
and they are free to Choose from the schemes made available.
3. Documentation :
Once the vehicles, product and scheme are finalized it will be
fine for us to initiate the process of making finance available to
47
the customers as soon as possible. In order to process the loan
the application smoothly, the previously mentioned statements
of the customers are essential.
4. Credit Evaluation :
A field investigation officer will visit the customer for
additional information that will help the company to process the
customer’s loan. A KMPL credit officer will evaluate the
customer’s proposal based on the documents submitted by the
customer along with the FI report.
5. Processing of finance :
After the credit approval, the company will enter into an
agreement with the customer and collect the post dated cheques
and ECS mandate.
6. Delivery of Car :
The time has finally arrived at this step, since at this point of
time the customer can take the delivery of their own car.
7. Recovery Agreement :
At the time of delivery, the customer must ensure that he
collects the invoice from the dealer. Usually registration takes
48
minimum 9 days to 10 days hence the customers are expected to
follow up with their dealer / DSA for the receipt of the same.
The customer must also make sure that the vehicle is insured
under comprehensive insurance plans giving the during the loan
period. The company will send the agreement copy and
repayment schedule to the customer at their correspondence
address within 15 days of the loan disbursal.
ALLIANCES AND PARTNERHIP
KMCC is a strategic joint venture between Kotak Mahindra Bank
limited and the Goldman Sachs group . The Brokerage,
Distribution and Research functions are looked after by the Kotak
Securities (KS) another joint venture with Goldman Sachs . KMCL
together with KS is a full Service Investment Bank bringing to our
clients. The global reach and enterprise of Goldman Sachs and the
local knowledge and the skills of Kotak Mahindra.
For the employees:
The company also has tie-ups with various external training bodies
and institutions and provide our employees an easy access to open
market programs on diverse topics through the year.
INDUSTRY AFFILIATIONS :
49
As an investment bank KMCC is registered with the SEBI and is
also registered as a non-banking financial company with RBI.
KMCC has a subsidiary company, Kotak Mahindra Securities
Limited ( KMSL ) which looks after the debt broking and which is
registered with NSE .The company is an active member of the
Association of Merchant Bankers of India ( AMBI) . KMSL is a
member of the Association of NSE members of India. The U.K
subsidiary with the securities and futures Association and the US
subsidiary with the Securities Exchange Commission.
CERTIFICATIONS, AWARDS AND RECOGNITIONS
Kotak Mahindra has received a number of Awards and
Certifications at both the national and international levels. These
recognitions is on its various field of functions including Banking,
Insurance, securities, investment banking, asset management,
International asset management. Miscellaneous and wealth
management.
Banking :
ICAI Award :
Excellence in Financial Reporting under Category 1 -
Banking Sector for the year ending 31st March, 2010 .
Asiamoney :
50
Best Local Cash Management Bank 2010
IDG India :
Kotak won the CIO 100 'The Agile 100' award 2010.
IDRBT :
Banking Technology Excellence Awards Best Bank Award
in IT Framework and Governance Among Other Banks' –
2009
Banking Technology Award for IT Governance and Value
Delivery, 2008.
IR Global Rankings :
Best Corporate Governance Practices - Ranked
among the top 5 companies in Asia Pacific, 2009 .
FinanceAsia :
Best Private Bank in India, for Wealth Management business,
2009.
Kotak Royal Signature Credit Card :
Was chosen "Product of the Year" in a survey conducted by
Nielsen in 2009
IBA Banking Technology Awards :
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-Best Customer Relationship Achievement - Winner 2008 & 2009
- Best overall winner, 2007
- Best IT Team of the Year, 4 years in a row from 2006 to 2009
- Best IT Security Policies & Practices, 2007
Euromoney :
Best Private Banking Services (overall), 2009 .
Insurance :
Outlook Money
Kotak Platinum Advantage Plan - Ranked 1st in Type II ULIP
category, 2008
Kotak Long Life Wealth Plus Plans - Ranked 4th in the Type I
ULIPs category
Securities:
FinanceAsia
Best Broker in India - 2010
CNBC Financial Advisor Awards
Best Performing Equity Broker, 2008 & 2009
Asiamoney Brokers Poll
Best Local Brokerage, 2006, 2007, 2008 & 2009
52
Best Analyst in India – Sanjeev Prasad, 2005, 2006, 2007,
2008 & 2009
FinanceAsia Country Awards for Achievement
Best Broker in India, 2006, 2009 & 2010
Thomson Extel Surveys Awards
India's Leading Equity House, 2007
SuperBrands Council of India
Business Super brand India, 2008
Investment Banking:
Finance Asia
Best Investment Bank in India, 2010
Best Equity House in India, 2010
Best Broker in India, 2010
Asia money
Best Domestic Equity House, 2010
Best Local Brokerage in the Asia money Brokers Poll – 2010
Global Finance
Best Investment Bank in India, 2010
Euromoney Real Estate Poll
Best Bank for Equity Finance in India, 2010
53
Asset Asian Awards
Best Domestic Investment Bank, 2010
FinanceAsia Country Awards for Achievement
Best Investment Bank in India, 2006, 2007, 2008, 2009 &
2010
Best Equity House in India, 2008 & 2010
Asiamoney Best Domestic Bank Awards
Best Domestic Equity House, 2008, 2009 & 2010
IFR Asia
India Equity House of the Year, 2008
Global Finance
Best Investment Bank in India, 2008, 2009 & 2010
Asset Asian Awards
Best Domestic Investment Bank, 2006, 2007, 2008 & 2009
Asset management :
ICRA Mutual Fund Awards 2009
Kotak Liquid (Regular Plan) - Ranked as a Seven Star Fund
for its 1 year performance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 1
year performance
Kotak Flexi Debt Fund - Ranked as a Five Star Fund for its 3
54
year performance
Kotak 30 - Ranked as a Five Star Fund for its 3 year
performance
International Asset Management:
Global Investor (Editorial Award)
Asian Asset Manager of the Year, 2009
Miscellaneous:
Businessworld
'Most Valuable CEO' overall, 2010 awarded to Mr. Uday
Kotak, Executive Vice Chairman & Managing Director
CNBCTV 18
'Best Performing CFO in the Banking/Financial Services
sector by CNBCTV 18 CFO Awards 2010 awarded to Mr.
Jaimin Bhatt
55
GIREM
GIREM awarded Kotak Realty Funds Group, the "Investor of
the Year" Award for 2009
IBA Banking Technology Awards
Best Use of Business Intelligence - up, 2008
Best Enterprise Risk Management - Runner up, 2008
The Great Places to Work Institute, India
Best Workplaces in India, 2008
Hewitt
10th Best Employer in India, 2007, 2008 & 2009
Financial Insights Innovation Award
Best Innovation in Enterprise Security Management in the
Asia Pacific Region, 2009
Frost & Sullivan
Best Passenger Vehicle Finance Company in India, 2006
CNBC TV 18
Indian Business Leader of the Year, 2008 awarded to Uday
Kotak, Executive Vice Chairman & Managing Director .
2.2 STATEMENT OF PROBLEM:-
56
Employee satisfaction research is an important communication tool
because it stresses that:
Employee satisfaction is important.
Employees are valued.
As frontline deliverers of the brand, employees’ views are
vital and integral to the development of the organization.
The bank is listening and employee suggestions for
improvement will be considered.
The bank recognizes the need for improvement
Employee satisfaction survey is designed to measure
organizational present satisfaction level for various parameters. It
also helps to analyse success of various HR activities as
satisfaction is direct result of these activities. The result of
employee satisfaction survey shows the strong and weak areas in
overall atmosphere in organization. This gives the inputs for action
plan needed for improving the satisfaction in organization. The
more satisfied employees improve the productivity resulting in
higher revenues. It also helps to check attrition and cost associated
with new recruitment.
The employee satisfaction survey is not an isolated event, but
rather the beginning of a continual improvement cycle. Employee
57
satisfaction survey process provides one of the quickest and
actionable feedbacks.
2.3 MANAGERIAL USEFULNESS OF THE STUDY:-
To help the management of the bank to know about the
actions to be taken to increase the level of satisfaction of the
employees.
58
The study helps in finding the weaknesses, if any in the
organization and the steps taken to avoid them.
The suggestions from the employees will help management
to make changes in the desired field.
59
1. How long has you worked for Kotak Mahindra?
Sr.no Work with Kotak Mahindra Value Percentage
1 Less than one year 27 27%
2 One year to less than two year 10 10%
3 Two year to less than five year 23 23%
4 Five year to less than ten year 10 10%
5 Ten year or more 30 30%
Total 100 100%
27%
10%
23%10%
30%
Less than one year One year to less than two yearTwo year to less than five year Five year to less than ten year Ten year or more
COMMENT: - 30% employees are working more than ten year with Kotak Mahindra
27% working from less than one year , 23% working from more than two year, 10% are
working from one year and 10% employees are working from more than five year with
this bank.
60
2. Overall, how satisfied are you with Kotak Mahindra as an Employee?
S.no Satisfaction Level Value Percentage
1 Very Satisfied 24 24%
2 Satisfied 36 36%
3 Neither Satisfied nor dissatisfied 20 20%
4 Dissatisfied 17 17%
5 Very dissatisfied 3 3%
TOTAL 100 100%
24%
36%
20%
17% 3%
Very Satisfied SatisfiedNeither Satisfied nor dissatisfied Dissatisfied Very dissatisfied
COMMENT: - 36% employees of the bank are satisfied with this bank as an employee
24% employees are very satisfied. 20% of employees are neither satisfied nor
dissatisfied, 17% of employees are dissatisfied and remaining 3% of employees are very
dissatisfied.
61
3. How satisfied are you that you understand the long-term strategy of Kotak
Mahindra?
S.No Satisfaction Level Value Percentage
1 Very Satisfied 34 34%
2 Satisfied 40 40%
3 Neither Satisfied nor dissatisfied 16 16%
4 Dissatisfied 8 8%
5 Very dissatisfied 2 2%
TOTAL 100 100%
34%
40%
16%8%
2%
Very Satisfied SatisfiedNeither Satisfied nor dissatisfied Dissatisfied Very dissatisfied
COMMENT: - Most of the employees (40%) are satisfied that they understand the long
term strategy of Kotak Mahindra, some of them (34%) very satisfied, (16%) of
employees are neither satisfied nor dissatisfied, (8%) of employees are dissatisfied and
very less no (2%) of employees are very dissatisfied.
62
4. Do you understand what Kotak Mahindra as a bank, is trying to achieve?
S.no Understanding Level Value Percentage
1 Yes 96 96%
2 No 4 4%
TOTAL 100 100%
96%
4%
Yes No
COMMENT: - Majority of the employees (96%) of the bank understand what is
objective & goal, less no of employee (4%) don’t understand what Kotak Mahindra as a
bank is trying to achieve
63
5. Do your work give you a feeling of personal accomplishment?
(a) Yes (b) No
S.no Value Percentage
1 Yes 80 80%
2 No 20 20%
TOTAL 30 100%
80%
20%Yes No
COMMENT:- Most of the employee’s (80%) work give them the feeling of personal
accomplishment , some of them (20%) don’t feel personal accomplishment from their
work.
64
6. Do you receive any appropriate recognition for your contributions?
S.no Value Percentage
1 Yes 84 84%
2 No 16 16%
TOTAL 100 100%
84%
16%Yes No
COMMENT: - Majority of the employees (84%) receive appropriate recognition for
their contribution, some of them (16%) did not receive any appropriate recognition.
65
7. How much confidence you have in the leadership of Kotak Mahindra?
S.no Value Percentage
1 More than enough 63 63%
2 Enough 30 30%
3 Less than enough 7 7%
TOTAL 100 100%
63%
30%
7%
More than enough Enough Less than enough
COMMENTS:- Majority of the Employees (63%) of the bank have more than enough &
some of them (30%) enough confidence in the leadership of this bank, very less no of
employee (7%) has less than enough confidence in the leadership of Kotak Mahindra.
66
8. Your role at Kotak Mahindra?
(a) Do you have enough authority to make decisions you need to make?
S.no Value Percentage
1 Yes 84 84%
2 No 16 16%
TOTAL 30 100%
84%
16%Yes No
COMENTS: - In Kotak Mahindra majority of the employees (84%) have enough
authority to make decisions what they need to make, some of them (16%) don’t have
enough authority.
67
(b) How satisfied are you with the type of work that you do?
S.no Satisfaction Level Value Percentage
1 Very Satisfied 26 26%
2 Satisfied 40 40%
3 Neither Satisfied nor dissatisfied 18 18%
4 Dissatisfied 13 13%
5 Very dissatisfied 3 3%
TOTAL 100 100%
26%
40%
18%
13% 3%
Very Satisfied SatisfiedNeither Satisfied nor dissatisfied Dissatisfied Very dissatisfied
COMMENT:- Majority of the employees (40%) are satisfied with their work what they
do, some of them (26%) are very satisfied, (18%) of employees are neither satisfied nor
dissatisfied, (13%) of employees are dissatisfied and (3%) very less no of employees are
very dissatisfied.
68
9. Did Kotak Mahindra provide as much initial training as you needed?
S.no Value Percentage
1 Yes 64 64%
2 No 36 36%
TOTAL 100 100%
64%
36%
Yes No
COMMENTS: - Majority of the employees (64%) said that Kotak Mahindra provided
initial training to as they needed
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10. Pay and Benefits
(a) Is your salary fair for your responsibilities?
S.no Value Percentage
1 Yes 74 74%
2 No 26 26%
TOTAL 100 100%
74%
26%Yes No
COMMENT: - Majority of the employee’s (74%) salary is fair for their responsibilities
but some of the employee’s (26%) salary is not fair for their responsibilities.
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FINDINGS:-
An employee's job satisfaction depends as much on the positive
mental, spiritual, physical, and emotional resources the employee
brings to the workplace, according to data gathered from 30
working employees on a three-year study of personal energy
management and work-life balance.
Human Performance Institute describes following ways employers
can create a satisfying work environment:
1. There is a need of attention to find out that why employees
are satisfied with their jobs.
2. About 81% employees believe that nature of their present job
gives satisfaction to them.
3. Most of the employees believe that one-day is sufficient to do
the work allotted to them.
4. 74% employees believe that job satisfaction provides the
career opportunities.
5. As far as job security is concerned. 83 % employees feel
secured.
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CONCLUSION:-
Every project at the end of it has some conclusion derived from the
study of the project.
Employee satisfaction has some shortcomings, which can be
overcome by taking into account the suggestions that are given in
the project.
Employee satisfaction plays a very vital role in the success of the
organization. So, every possible step should be taken for the
satisfaction of the employees regarding their jobs.
If the employees would be more satisfied with their jobs, the
productivity would be increased satisfied employees are more
committed, harder working and more productive In Kotak
Mahindra, most employees are found to be satisfied with their
jobs.
The most common way of measurement is the use of rating scales
where employees report their reactions to their jobs.
72
RECOMMENDATIONS:-
Given below are the various suggestions from the researcher’s point
of view which he feels must be implemented in the bank on order to
enable it to work more effectively and overcome the various
obstacles .which the employees are facing regarding job satisfaction.
1. Surprise inspections should be done in order to avoid ghost
punching.
2. Use of workers participation in management.
3. Bank “in the minds of the employees so as to improve the
interpersonal relations in the organization
4. Employees should be induced top improve their productivity by
the introduction of various incentive schemes.
5. Incentives should be directly linked with profits so as to
improve the productivity of the employees.
6. Employees should be given job security to create the
satisfaction in their minds towards their respective jobs.
7. Job satisfaction is the end feeling of a person after performing a
task so as to person’s job must fulfilled his dominant needs
and is consistent with his expectation and values, the job will
be satisfying .
8. It is suggested the rewards and punishments should be equitable
with other employees doing similar work.
73
9. The supervisor must be able to find out that the employees have
received amounts to what he perceived.
10. It is recommended to put suggestion boxes in every
department in which the staff concerned can draw in there
suggestion and possible solution to overcome the problems
faced by them.
BIBLIOGRAPHY
74
The information in this project is based on primary as well as
secondary data which was collected from the following sources:
BOOKS:-
1. Human Resource Management- CHABBRA T.N,3rd edition,
2006 Prentice Hall of India
2. Personnel Management –.Flippo Edwin B, 3rd edition, 2007
3. Human Resource Management- GUPTA C.B 1st edition,2006
Vikas publishing house ,Pvt ltd. Delhi
WEBSITES:-
http://www.pearsoned.co.in/Web/
Home.aspxwww.wikipedia.org.
http://www.askanswers.com/www.msthl.com
http://www.gicareers.co.uk/www.expil.co.uk
http://www.educationuk.org/
http://www1.youseemore.com/surrey/
QUESTIONNAIRE
Kotak Mahindra Employee Satisfaction Survey
75
Name ………………………………………………
Age…. 21 to 34 35 to 44 45 to 54
55 or older
Sex…. Male Female
1. How long has you worked for Kotak Mahindra?
Less than one year
One year to less than two years
Two years to less than five years
Five years to less than ten years
Ten years or more
2. Overall, how satisfied are you with Kotak Mahindra as an Employee?
(a) Very Satisfied
(b) Satisfied
(c) Neither Satisfied nor dissatisfied
(d) Dissatisfied
(e) Very Dissatisfied
76
3. How satisfied are you that you understand the long-term strategy of Kotak
Mahindra?
(a) Very Satisfied
(b) Satisfied
(c) Neither Satisfied nor dissatisfied
(d) Dissatisfied
(e) Very Dissatisfied
4. Do you understand what Kotak Mahindra as a Bank, is trying to achieve?
(a) Yes
(b) No
5. Do your work gives you a feeling of personal Accomplishment?
(a) Yes
(b) No
6. Do you receive any appropriate recognition for your contributions?
(a) Yes
(b) No
7. How much confidence you have in the leadership of Kotak Mahindra?
(a) More than Enough
(b) Enough
(c) Less than Enough
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8. Your role at Kotak Mahindra.
(a) Do you have enough authority to make decisions you need to Make?
(a) Yes
(b) No
(b) How satisfied are you with the type of work that you do?
(a) Very Satisfied
(b) Satisfied
(c) Neither Satisfied nor dissatisfied
(d) Dissatisfied
(e) Very Dissatisfied
9. Did Kotak Mahindra provide as much initial training as you needed?
(a) Yes
(b) No
10. Pay and Benefits
(a) Is your salary fair for your responsibilities?
(a) Yes
(b) No
(b) Are there any benefits you would like added to Kotak Mahindra benefits
package?
Yes What would you like added?
No
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11. What types of incentives motivates you more?
(a) Financial Objectives
(b) Non-Financial Objectives
(c) Both
12. I am satisfied with the salary I draw.
(a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
13. I am satisfied with the lunch breaks, rest breaks.
(a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
14. I am satisfied with the administration in my office.
(a) Strongly Agree
(b) Agree
(c) Neutral
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(d) Disagree
(e) Strongly Disagree
15. The rest rooms / washrooms are clean, hygienic and well ventilated.
(a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
16. I am satisfied with my work.
(a) Strongly Agree
(b) Agree
(c) Neutral
(d) Disagree
(e) Strongly Disagree
17. What can Kotak Mahindra do to increase your satisfaction as an employee?
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