A

Project Report
On

Comparative Analysis of
Private Sector Bank on Basis of
Current Account, Saving
Account & Fixed Deposit
CONTENTS

1 CHAPTER-1 INTRODUCTION

. Scope of the study

Research Objectives & Hypothesis

2 CHAPTER-2 ORGANIZATION PROFILE

. A Brief profile of the industry

Detailed profile of the Company

3 CHAPTER-3 METHODOLOGY

. Research design

Sampling

Method and tool of data collection

Data analysis and Hypothesis Testing

4 CHAPTER-4 ANALYSIS OF DATA

.5 CHAPTER-5 INTERPRETATIONS & FINDINGS

.
6. CHAPTER-6 BIBLIOGRAPHY & ANNEXURES
 CHAPTER-І

INTRODUCTIO

N
 Introduction

Banks are the most significant players in the Indian financial market. They are the biggest
purveyors of credit, and they also attract most of the savings from the population.
Dominated by public sector, the banking industry has so far acted as an efficient partner
in the growth and the development of the country. Driven by the socialist ideologies and
the welfare state concept, public sector banks have long been the supporters of agriculture
and other priority sectors. They act as crucial channels of the government in its efforts to
ensure equitable economic development.

The Indian banking can be broadly categorized into nationalized (government owned),
private banks and specialized banking institutions. The Reserve Bank of India acts a
centralized body monitoring any discrepancies and shortcoming in the system. Since the
nationalization of banks in 1969, the public sector banks or the nationalized banks have
acquired a place of prominence and has since then seen tremendous progress. The need to
become highly customer focused has forced the slow-moving public sector banks to
adopt a fast track approach. The unleashing of products and services through the net has
galvanized players at all levels of the banking and financial institutions market grid to
look anew at their existing portfolio offering. Conservative banking practices allowed
Indian banks to be insulated partially from the Asian currency crisis. Indian banks are
now quoting al higher valuation when compared to banks in other Asian countries (viz.
Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non
Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed
in approach and armed with efficient branch networks focus primarily on the ‘high
revenue’ niche retail segments.

The Indian banking has finally worked up to the competitive dynamics of the ‘new’
Indian market and is addressing the relevant issues to take on the multifarious challenges
of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and
proactive players capable of meeting the multifarious requirements of the large
customer’s base. Private Banks have been fast on the uptake and are reorienting their
strategies using the internet as a medium The Internet has emerged as the new and
challenging frontier of marketing with the conventional physical world tenets being just
as applicable like in any other marketing medium.

The Indian banking has come from a long way from being a sleepy business institution to
a highly proactive and dynamic entity. This transformation has been largely brought
about by the large dose of liberalization and economic reforms that allowed banks to
explore new business opportunities rather than generating revenues from conventional
streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30
banking units contributing to almost 50% of deposits and 60% of advances. Indian
nationalized banks (banks owned by the government) continue to be the major lenders in
the economy due to their sheer size and penetrative networks which assures them high

deposit mobilization. The Indian banking can be broadly categorized into nationalized,
private banks and specialized banking institutions.

The Reserve Bank of India acts as a centralized body monitoring any discrepancies and
shortcoming in the system. It is the foremost monitoring body in the Indian financial
sector. The nationalized banks (i.e. government-owned banks) continue to dominate the
Indian banking arena. Industry estimates indicate that out of 274 commercial banks
operating in India, 223 banks are in the public sector and 51 are in the private sector. The
private sector bank grid also includes 24 foreign banks that have started their operations
here.

The liberalize policy of Government of India permitted entry to private sector in the
banking, the industry has witnessed the entry of nine new generation private banks. The
major differentiating parameter that distinguishes these banks from all the other banks
in the Indian banking is the level of service that is offered to the customer. Their focus
has always centered around the customer – understanding his needs, preempting him
and consequently delighting him with various configurations of benefits and a wide
portfolio of products and services. These banks have generally been established by
promoters of repute or by ‘high value’ domestic financial institutions.

The popularity of these banks can be gauged by the fact that in a short span of time, these
banks have gained considerable customer confidence and consequently have shown
impressive growth rates. Today, the private banks corner almost four per cent share of
the total share of deposits. Most of the banks in this category are concentrated in the
high-growth urban areas in metros (that account for approximately 70% of the total
banking business). With efficiency being the major focus, these banks have leveraged on
their strengths and competencies viz. Management, operational efficiency and flexibility,
superior product positioning and higher employee productivity skills.

The private banks with their focused business and service portfolio have a reputation of
being niche players in the industry. A strategy that has allowed these banks to
concentrate on few reliable high net worth companies and individuals rather than cater to
the mass market. These well-chalked out integrates strategy plans have allowed most of
these banks to deliver superlative levels of personalized services. With the Reserve Bank
of India allowing these banks to operate 70% of their businesses in urban areas, this
statutory requirement has translated into lower deposit mobilization costs and higher
margins relative to public sector banks.

Scope of the study

As current market place is highly competitive and each corporate is expanding its
business round the globe for its global presence so they do study related to market trend
regarding to their market share in comparison to their competitors. This study is carried
out to find out the market share of Kotak Mahindra Bank and also compare it with
different Private sector banks. For this analysis of the sales trend of Financial product ,ie
Saving a\c , Current a\c & Fixed Deposits has completed in Lucknow city. This study is
confined to some of the areas like Hazratganj, Gomti Nagar, Indira nagar, Rajajipuram,
Chowk, Latoche Road, Haider Ganj and Aminabad etc of Lucknow city.

Significance of the study

This study is helpful to find out the strengths and the weakness of their deposits and
mobilization schemes of bank and how to overcome its weakness. This study provides
useful inputs to find out the current position of Kotak Mahindra Bank in comparison to
its competitors.

Objectives of Study

The objectives of undergoing study are as follows;

1. Study and analyze the market share of financial products of different banks.
2. Possible improvements to be brought in for the development of their future
business.
 Hypothesis of Study

For these objectives some of the hypothesizes have been framed which are given below;

Hypothesis 1;

H0: There is significant relation between customer preference and bank’s financial
products.
H1: There is no significant relation between customer preference and bank’s financial
products.

Hypothesis 2;

H0: There is significant relation between bank’s financial products and business
development.
H1: There is no significant relation between bank’s financial products and business
development.

Literature Review
There has been significant growth in both private bank and public sector banks in past 10
years. The main function of commercial banks is to mobilize deposit from the public for
the purpose of deploying them profitably by way of advances and investment.

The Deposits are therefore their raw material which they collect from public through
various deposit mobilization schemes and lend the same to individuals, business
enterprises and bodies corporate through their various lending and investment
schemes/products.

The difference between the cost of deposits and the earnings on advances and
investments determines their profit margins and profitability of banks.

Bank deposits: The bank deposits are generally classified as

• Demand deposits
• Savings deposit
• Term deposits

Demand deposits: demand deposits are mainly current account wherein the account
holder can deposit and withdraw any amount at any time without restricting the
number of transactions on any day /time.
Current account:
In this type of account person can deposit there money any time and can withdrew
it anytime. In this kind of account no Interest is paid. Moreover some banks charge
/take service charges for providing the facility. This type of account is mostly opened
by the Business community.

Saving account:
In this type of account account holder can deposit its money any time but cannot
withdrew the same as in current account, he cannot withdrew before certain period of
time. In these type of account rate of Interest is nominal generally 4 percent moreover
the rate of interest given for the deposit of the account holder is calculated on the
minimum balance the account holder had in his account from 12th to last day of the
particular month but rate is low when compared to rate of Interest in Term deposit.

Term deposit:
In this type of account person deposit it money for certain period of time say for a
year and he generally cannot withdraw it before completion of that period.

If the current account or saving account for a bank is less then it means its cost of
deposit is more whereas those banks who maintain a balance in all these three
accounts (i.e. current account , saving account , time deposit) it means that they
balance to maintain a good profitability and minimum cost of borrowing

Earlier the rate of interest on deposits was regulated but now they are not.
There has been a proper balance between demand deposit (i.e. current and saving
deposit) and time deposit and thus for this purpose banks prepare ALPM i.e. assets
liability planning and management..
 Scheme of Dissertation

This study has been carried out to find out “COMPARATIVE STUDY OF PRIVATE
SECTOR BANKS REGARDING CURRENT A\C , SAVING A\C & FIXED
DEPOSIT”. For this market research of some areas of Lucknow has been
completed. The scheme comprises of finding out the market share/sales trend of
different financial products of Kotak Mahindra Bank n in comparison to some
other Private Bank like ICICI , HDFC . Sample size of 100 is taken . For the
objectives of this whole study hypothesis have been designed for testing with the
use of statistical tools like Chi-square and software like SPSS. The layout of the
dissertation is as follows;

Introduction: Introduction gives a brief idea about Banking industry, scope of study,
significance of study, objectives, hypothesis and literature review part related to
Banks and there Financial Products .

Organization Profile: This part comprises of industry profile and company profile. This
part give a brief idea about current trends in industry and company.

Research methodology: This part give an idea about research design, sample size/design
and method of data collection.

Analysis and Interpretations: This part tells about data analysis, method carried out for
data analysis and interpretations from the analysis part.

Discussions and Recommendations: This part gives an idea about some inputs to
explore some other parts of research for further studies and tells about which part
is necessary for more focussed research.

Bibliography and Annexure: This part comprises of references taken for this study and
questionnaire which was framed for this study.
 CHAPTER-ІІ

ORGANIZATIO
N
PROFILE
Industry Profile

BANKING SECTOR IN INDIA

Introduction

The liberalization brought in 1991 has swept the economic landscape of the
country. The automobile industry is one of the invisible faces of liberalization .For the
people who were used to many years of Ambassador cars with various models not
different in anyway except a few changes in every model, the arrival of Maruti heralded
the beginning of a new experience in automobile comfort. It was the same with Bajaj
Chetak. Its obnoxious horn and the tilt and start symbolized the deplorable technology to
which an Indian consumer was treated. We are thus living in the era of change.

Banking sector is no different. The changes in banking in the last decade are
unparalleled when compared to the entire period of banking history in India. Profitability,
which remained a taboo for bankers for years since independence, has become a
buzzword today. Our banks modeled on British banks, which erected awesome building
to scare the public in the garb of being a sentinel of public money, today go for boutique
banking to be as close to public as possible. Thus, competition fuelled by technology
drives banking today.

It is becoming increasingly clear that ' Technology ' alone can make
bankers sail through the competition. Computerization of branches, introduction of cash
management products, remote access login for corporates, Banking Company is defined
as “a company, which transacts the business of banking in India. The Banking
Regulation Act defines the business of banking by stating the essential functions of a
banker .It also states the various other businesses a banking company may be engaged in
and prohibits certain businesses to be performed by it.”mobile banking, Internet banking
and ATM banking are a few ways by which bankers use technology today to beat the
competition.
 BANKING SYSTEM IN INDIA

Apex Banking Institutions

Industrial Agricultural Export-

Reserve
Development Refinance & Import
Bank Of
Bank Development Bank of
India
Corporation India
Banking Institutions

Industrial
Commercial Co-operative Banks Land Development Development
Regional
Banks Banks Banks
Rural
Banks State Co-operative
Banks
Foreign Indian State Land
Commercial Commercial Banks Development
Banks Banks
Central/District
Co-operative Bank
Primary Land
Public Sector Private Development Banks
Banks Sector Banks
Primary Credit
Societies

State Bank Nationalized

Group Banks

All India
State

State Bank of Subsidiary Level

India Banks IFCI ICICI
IRC
SID
SFC s
Cs
 SERVICES RENDERED IN INDIA
• Personal Services
Administration of
Estates.
Business Services
• Private Trusts
• Personal Service
• Investment Services
• Unit Trusts
• Life Assurance
• Insurance Broking
• Credit Cards
• Hire Purchase
• Personal Advisory
• Money & Travel
(Open credit abroad, overseas
payment, Telegraphic transfers,
Post cheques, Traveler’s
cheques.)
Ancillary services
• Life Insurance
• Merchant Banking.
• Unit Trusts
• Company
Registration& • Insurance Services
Computer Service
• Travel Services.
• Leasing& Industrial
Hire Purchase.
• Mail Transfer
• Factoring
• Telegraphic Transfers
• Corporate
• Bank Drafts.
Trusteeships.
• Business Advisory
Services
• Offshore Services
• Foreign Trade
TYPES OF BANK

PRIVATE
BANKS

SCHEDULE COMMERCIAL
BANKS BANKS

BANKS

CO-OPERATIVE
FOREIGN BANKS
BANKS

INDUSTRIAL
BANKS
5 DIMENSIONS OF SERVICES

There are many reasons why a customer should be given QUALITY SERVICES. The
most of them are:

1. Industry being so competitive that a customer should be given the best services as
they have many competitors (the company) and if even a single customer is lost in
today’s JLT world then it very difficult to win back the customer.
2. Most of the customers do not complain as they just opt out and do get satisfied
with better services elsewhere.

When it comes to services, there are 10 quality dimensions. Each of the dimensions is of
utmost importance since human element is involved and it relates to services.
But Zeithaml, Bitner and Parsuraman have developed a new and concise model
by clubbing some points. This model consists of the following dimensions:

 Reliability
 Assurance
 Tangibility
 Empathy
 Responsiveness
 RELIABILITY

RESPONSIVENESS ASSURANCE

EMPATHY TANGIBILITY

RELIABILITY

It is defined as the ability to perform the promised service dependably and

accurately. In its broadest sense, reliability means that the company delivers on its
promises–promises about delivery, service provision, problem resolution, and pricing. It
is also known as the “No Excuses” service delivery.

Indian Overseas Bank faces stiff competition from many other banks within its
vicinity and some of these banks are foreign banks. But the existing customers have faith,
loyalty and trust in this bank. The customers are well aware that the bank will provide
them back the best and reliable services.

For e.g., no person likes to wait to withdraw his/her money. In order to correct
this problem, Indian Overseas Bank has ensured that whoever comes in for cash
withdrawal will receive his/her cash within five to ten minutes.
 ASSURANCE

Assurance is defined as employee’s knowledge and courtesy and the ability of the
firm and its employees to inspire trust and confidence. It includes the ability, knowledge,
genuineness, and honesty to provide the best services to the customer from the frontline
staff. In this dimension the front line staff is more important rather than the owner.

At Indian Overseas Bank, every customer who comes is treated with utmost care and
any problem that takes place is solved with great enthusiasm. It assures the customers
coming up to the bank that the money they invest is secure; the interest rate that is being
provided to them is at par or sometimes even higher as compared to other banks. Also, it
assures the customers that the money they have invested will be returned to them as and
when required with proper interest. It tries to empower their customer contact people and
regularly train them in skills to build trust and loyalty between employees and the
customers.
They have assigned some of their staff members to build relationships with the customers
by getting to know them personally.

TANGIBLITY

Tangibles are defined as the appearances of physical facilities, equipments,

personnel and communication materials. All of these provide physical representations or
images of the service that customers, particularly new customers, will use to evaluate
quality.

At Indian Overseas Bank, the entire premise is air-conditioned. They have

computerized systems in place and therefore quick, accurate and efficient service can be
provided to the customers. The tables and chairs are conveniently located for the
customers. The personnel always have a cheerful and helping veneer and are always
ready to help out the customers. The entire place is done up in bright colors and thus the
customer can immediately feel the warmth and the radiance of the place.

EMPATHY

Empathy is defined as the caring, individualized attention the firm provides its
customers. The essence of empathy is conveying, through personalized or customized
service, the customers are unique and unique special.
The empathy shown by the employees of the Indian Overseas Bank is good as they
are always polite humble and helpful. There was a case where once a customer misplaced
Rs. 1,00,000 within the premises of the bank. He panicked but the bank personnel put
him at rest and assured him that they would locate the same for him. Since he was a
regular customer, they knew him very well and took the situation under control. They
quickly located the cash and thus, the customer was placated. The bank personnel went
out of their way to help this customer and thus understood his predicament. This bank
regularly holds seminars and training workshops so that they can understand the
consumer better and thus serve him better.

RESPONSIVENESS

Responsiveness is the willingness to help the customer and provide him with
immediate and fast service.
The Indian Overseas Bank is prompt at providing its customers with the
information and services that they seek. It is extremely prompt when it comes to
resolving the complaints of the customers. The customers, in their feedback form,
mentioned this as one of the most important factor that has prompted them to continue
with this bank.
All the five dimensions basically aim at serving the customers to the best of their
ability, giving them quality services and if things are followed as they are demanded,
(i.e., according to the customers demand) then there would be no problems in facing any
type of people. The successful service organizations set up speeds for service standards.
TRADITIONAL BANKING
Traditionally the relationship between bank and its customer has been on a one-
to-one level via the branch network. This was put into operation with clearing and design
making responsibilities at the individual branch level. The head office had the
responsibility for the overall clearing network, the size of the branch network and the
training of staff in the branch network. The branch monitored the organizations
performance and set the decision making parameters, but the information available to
both branch and their customers was limited to one geographical location.

Customer Customer
Customer

Bank Branch Bank Branch

Bank Branch
Clearing Decision Clearing Decision
Clearing Decision

Central clearing
Central clearing

Traditional banking structure

 RELATIONSHIP BANKING

The modern bank cannot rely on its branch network alone. Customers are now
demanding new, more convenient, delivery systems. And services such as internet
banking have a dual role for the customer thus increasing the productivity of this sector.
They provide traditional banking service, but additionally offer much greater access to
information on their account and on the banks many other services. To do this banking
has to create information layers, which can be accessed both by bank staff as well as by
the customers themselves.
Today banking in India has become an un popular industry, much blamed for its
problems of its own making. The use of interactive electronic links via the internet can go
a long way in providing the customers with greater deal of information about both their
financial situation and about the services offered by the bank.

Customers

Telephone, Branch, Electronic Banking, etc.

Shared Information

Clearing systems Head Office Risk

Monitoring
Company Profile

COMPANY
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance
Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak
& Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in
1986, and that's when the company changed its name to Kotak Mahindra Finance
Limited.

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

1986
Kotak
Mahind
ra
Finance
Limited
starts
the
activity
of Bill
Discou
nting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
The Investment Banking Division is started. Takes over FICOM, one of India's
1991
largest financial retail marketing networks
1992 Enters the Funds Syndication sector
Brokerage and Distribution businesses incorporated into a separate company -
1995 Kotak Securities. Investment Banking division incorporated into a separate
company - Kotak Mahindra Capital Company
The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Prime Limited (formerly known as Kotak Mahindra Primus
Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak
1996
Mahindra Limited, for financing Ford vehicles. The launch of Matrix
Information Services Limited marks the Group's entry into information
distribution.
Enters the mutual fund market with the launch of Kotak Mahindra Asset
1998
Management Company.
 Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
Kotak Securities launches its on-line broking site (now
2000
www.kotaksecurities.com). Commencement of private equity activity through
setting up of Kotak Mahindra Venture Capital Fund.
Matrix sold to Friday Corporation
2001
Launches Insurance Services
Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian
2003
company to do so.
2004 Launches India Growth Fund, a private equity fund.
Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra
Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford
2005
credit Kotak Mahindra.
Launches a real estate fund
Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital
2006
Company and Kotak Securities

Journey so far

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, 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. 5,609 crore, employs around 17,100 people in its
various businesses and has a distribution network of branches, franchisees, representative
offices and satellite offices across 344 cities and towns in India and offices in New York,
London, Dubai, Mauritius and Singapore. The Group services around 3.6 million
customer accounts.

In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was
given the license to carry on banking business by the Reserve Bank of India (RBI). Kotak
Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a
bank.

Recently, Kotak Mahindra Bank Ltd and HDFC Bank have signed a Memorandum of
Understanding to share their ATM network. This agreement will give customers of the
two banks access to over 1400 ATMs across the country. While HDFC Bank has 1335
ATMs across 228 locations in the country, Kotak Mahindra Bank has 75 ATMs at 41
locations, accessible 24 hours a day, 365 days a year. Kotak Mahindra Bank is offering
access to HDFC Bank ATM network free of cost to most of its customers. The charges
for HDFC Bank customer for using Kotak Mahindra's ATMs are Rs. 18 for Cash
withdrawals and Rs. 7 for Query-based transactions such as balance enquiry.

Corporate Identity
Group Management
Name Title Age
Uday Kotak Executive Vice 48
Chairman, Managing
Director, Chairman of
Nominations
Committee, Chairman
of Management
Committee, Chairman
of Committee of the
Board of Directors,
Chairman of Share
Transfer and Routine
Transaction
Committee, Chairman
of Credit Committee,
Member of Investor
Relations
(Shareholders/Investors
Grievance) Committee,
Member of Committee
on Frauds, Member of
Customer Services
Committee, Director of
Kotak Forex Brokerage
Limited, Director of
Kotak Mahindra
Primus Limited,
Director of Kot
Chengalath Jayaram Executive Director, 51
Member of Audit
Committee, Member of
Nominations
Committee, Member of
Management
Committee, Member of
Committee of the
Board of
 Directors,Member of
Investor Relations
(Shareholders/Investors
Grievance) Committee,
Member of Share
Transfer & Routine
Transaction
Committee, Member of
Committee on Frauds,
Member of Credit
Committee, Director of
Kotak Mahindra Asset
Management Company
Limited, Director of
Kotak Mahindra
Primus Limited and
Director of Kotak
Securities Limited
Dipak Gupta Head of Retail 47
Business and Banking
Operations, Executive
Director, Member of
First Tier Audit
Committee, Member of
Nominations
Committee, Member of
Management
Committee, Member of
Committee of the
Board of Directors,
Member of Investor
Relations
(Shareholders/Investors
Grievance) Committee,
Member of Share
Transfer and Routine
Transaction
Committee, Member of
Committee on Frauds,
Member of Credit
Committee, Member of
Customer Services
Committee, Director of
Kotak Forex Brokerage
Limited, Direct
Shivaji Dam Director, Member of 50
 Audit Committee, and
Managing Director of
OM Kotak Mahindra
Life Insurance
Company Limited

Awards
2007

• Awarded the 10th Best Employer in the recently conducted Hewitt’s Best
Employers in India 2007 Study
• Best Investment Bank in India by Finance Asia
• Most Popular Investor Relation Website for the Asia/Pacific Region conducted by
IR Global Rankings
• Emerged winner in 16 categories in the Euromoney Private Banking Poll 2007,
including the Best local Private Bank

2006

• “IT Team of the Year” award at the annual Banking Technology Awards 2006
• Runner’s up in the “Best Payments Initiative” category at the annual Banking
Technology Awards 2006
• Kotak Securites was ranked The Most Customer Responsive Company for 2006
(Category - Financial Services) by Avaya Globalconnect
• Awarded the Best Domestic Investment Bank and the Best Equity House in The
Asset Triple A Country Awards
• Awarded Voice of Customers Award for the Best Passenger Vehicle Finance
Company in India in 2006 by Frost & Sullivan
• Winner in 33 categories in the Asiamoney Private Banking Poll 2006 including
the Best Private Bank award in Southern Asia
• Ranked no. 1 in six categories in the Annual Euromoney Private Banking Survey
Poll for 2006 for India
• Best Investment Bank in India by Finance Asia
• Ranked # 1 in the league table for Book runner/ Lead Manager in public equity
offerings in terms of the value of transactions completed during fiscal 2006
according to Prime Database
• Best Broker in India by Finance Asia
• Topped the Asiamoney 2006 Brokers Poll as the Best Local Broker
• Adjudged the best Mutual Fund House in the NDTV Business Leadership Award
2006
• Best Bond Fund Group over Three Years by Lipper Fund Awards India
 • Ranked the best debt fund over 5 years by Lipper for the Kotak Bond Regular
Plan
• Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for the
'Kotak Bond Regular Plan'

2005

• Ranked as the top mergers & acquisitions advisor in India in terms of the value of
mergers & acquisitions deals announced from January to December 2005,
according to Bloomberg
• Topped the India Advisory Partners Indata League table in terms of the value of
deals announced for the calendar year 2005
• Ranked # 1 in the league table for Book runner/ Lead Manager in public equity
offerings in terms of the value of transactions completed during fiscal 2005
according to Prime Database
• Best Broker in India by Finance Asia
• Best Equity House in India by Euromoney

2004

• Best Investment Bank in India by Finance Asia

• Ranked # 1 in the league table for Book runner/ Lead Manager in public equity
offerings in terms of the value of transactions completed during fiscal 2004
according to Prime Database
• Best Investment Bank in India by Global Finance
• India's Best Equity House in India by Finance Asia
• Best Equity House in India by Euromoney
• Best Equity House in India by Asiamoney
• Best India Equity House by IFR

2003

• Best Investment Bank in India by Finance Asia

• Ranked # 1 in the league table for Book runner/ Lead Manager in public equity
offerings in terms of the value of transactions completed during fiscal 2003,
according to Prime Database
• Best Equity House in India by Euromoney

Products and Services

Saving Accounts

1. Edge Saving Account

2. Pro Saving Account

3. Classic Saving Account

4. Nova Saving Account

5. Ace Saving Account

6. Easy Saving Account

Term Deposits

Loans

1. Personal Loans

2. Home Loans

3. Home Loan Balance Transfer

4. Home Improvement Loans

Cards

1. Gold Debit Card

2. Global Debit Card

3. Best Compliments Card

4. Netc@rd

5. Access India Card

Investment Services

1. Demat

2. Mutual Funds

3. Insurance
4. Kotak Gold Eternity

Convenience Banking

1. Net Banking

2. Mobile Banking

3. Payment Gateway

4. Phone Banking

5. ATM Banking

6. SMS Banking

7. Alerts

SAVING DEPOSITS
Saving Bank Account

Savings Bank Account as the very name suggests, are intended for savings for the future.
The object is to save in small or big amounts from time to time. On opening an account
with us, you get wide range of facilities as under in a totally Computerized Banking
Environment.

The facilities offered - :

• Free 4 Cheque books per Calendar

Year
• Free ATM Card Facility
• Tele-Banking & Fax-on-demand
Facility
• D’Mat Facility
• Safe Deposit Lockers

Free Cheque Book Facility

An accountholder whose account is properly introduced and maintaining
a minimum balance of Rs10000/- per month is given a Free cheque book.

Free ATM Card Facility

When you open a savings account with us, you automatically get a free
ATM card, which gives you instant access to your account across the
branches, 24 hours 365 days. Your ATM card gives you to conduct
transactions such as cash withdrawal up to Rs 15000/-, Cash / Cheque
Deposit, balance inquiry, last 5 transactions, PIN change etc. free of

Cost.

Tele-Banking & Fax–on-Demand Facility

When you open an account at our branches , you can enjoy the benefits of
Tele-banking & Fax-on-demand facility. You will receive a PIN
( Personal Identification Number), which enables you to contact the
bank and conduct the following transactions on your own over the
telephone:

1) Balance Inquiry
2) Last 5 Transaction
3) Cheque book Request
4) To record request for statement of account
5) To switch to your another account for information
6) To change PIN number.
7) To get the statement of Account on your Fax

D’Mat Facility

On opening an account with us you can also avail D’mat facility for
dematerialization of shares and conduct transactions through D’Mat
Account.

Interest Rate

Interest on your savings account is 3.5 % p.a and is calculated on a

monthly basis , based on the minimum balance in your account between
the 10th and the last day of the month , and is credited to your savings
bank account at the end of every 6 months.
Eligibility
Savings Bank accounts may be opened in the names of An Adult

1) Individual - single account / Joint account

2) Minors – operated upon by guardians natural or court appointed.
3) Illiterate persons – operated by thumb impression.
4) Trusts - Private or Public.
6) Credit / Housing Co-operative Societies
7) NRI /NRO

CURRENT DEPOSITS

• Current Account :
Current Accounts ,as distinguished from Savings Bank Accounts are
active accounts opened mainly by members of business community trade
, corporate bodies or professionals where the account holders have to
receive money frequently and to make a number of payments during
course of their business activities or profession. On opening a Current
account with us ,you will receive much more than all the basic facilities
you need to operate your business account.

The facilities offered - :

• Cheque book
• Any Branch Banking
• Free ATM Card Facility
• Tele-Banking & Fax-on-demand
• D’Mat Facility

Cheque Book Facility

All current accounts are invariably required to be introduced by some one

known to and approved by the bank. An accountholder whose account is
properly introduced and maintaining a minimum balance of Rs 3000/- is
given a cheque book facility.

Any Branch Banking

On opening a Current account we give the facility of Any Branch
Banking at any of the branches , either on the ATM upto a limit of Rs.
15000 and across the counter upto a limit of Rs 25000/-

Free ATM Card Facility

When you open a Current account as a sole proprietor, you are entitled to
a free ATM card ,which gives you instant access to your account across
the branches , 24 hours 365 days. Your ATM card gives you to conduct
transactions such as cash withdrawal of Rs 15,000 /- , Cash or Cheque
deposit , balance inquiries , last 5 transactions , PIN change etc. at free of
cost.

Tele-Banking & Fax–on-Demand Facility

When you open an account at our branches , you can enjoy the benefits of
Tele-banking & Fax-on-demand facility.You will receive a PIN( Personal
Identification Number), which enables you to contact the bank and
conduct the following transactions on your own over the telephone :

1) Balance Inquiry
2) Last 5 Transaction
3) Cheque book Request
4) To record request for statement of account
5) To switch to your another account for information
6) To change PIN number.
7) To get the statement of account on your Fax

TERM DEPOSITS

As distinct from a Savings Bank deposit or Current Account deposit , a Term Deposit
refers to a deposit kept for a predetermined definite period of time at an agreed rate of
interest.

Fixed Deposit (Q)

which is ordinarily for a period of one year and upto 5 years in complete
quarters and in multiples of Rs 10000 /- Interest is payable at Quarterly
rests.
Services Offered :

TeleBanking :

Tele-Banking & Fax on Demand Service We offer our customers Free Tele-Banking and
Fax on Demand service to all our customers to carry out banking activities round the
clock, everydayTele-Banking and fax on demand service offer wide range of transactions
without ever entering the bank :

• Latest Balance
• Last 5 Transactions
• Request for statement of Account
• Cheque Book Request Change
• PIN Change
• Switch to your another Account

Latest Balance :

You can Tele-Banking and Fax on Demand Service to know your latest
balance in your savings and current Accounts.

Last 5 Transactions :

You can have the details of the last 5 transactions read out to you at the
touch option .You can even have a mini account statement faxed to you.

Request for a statement of Account :

You can request for a statement of accounts for a specific period to be

mailed to you or you collect the same by coming to the branch.

Cheque Book Request :

You can register a request for a new cheque book using telebanking
facility. On registering for a new chequbook the same will be kept ready.
PIN Change :

You have the option to change your PIN (Personal Identification

Number) by touch of the button and by sitting at your place.

Switch to another Account for Information :

If you hold multiple accounts with us you have the option to switch
between the accounts to know your account details.

Any Branch Banking

1. Features

This facility will enable our clients to withdraw money upto Rs. 25000/- across the
counter or upto Rs. 15000 /- through ATM from any of the branches. Withdrawal of
Cash on ATM will be available round the clock.

2. Benefits

Deposit Cash - You can deposit cash using any branch banking across the
counter during business hours and will be credited to your account on the
same day.

Transfer of Funds - You can transfer funds between your accounts from
one branch to another across the counter.

Mini-Statements - You can get a mini-statement for your last 5 transactions

of your accounts by using ATM or across the counter.

3. Eligibility

You can use the Any Branch Banking Facility if you are

• A savings Account holder with authority to operate the account in individual

capacity.
• A current Account holder in individual Proprietorship or Partnership
 4. Application Process

• Open a Savings or Current Account

• Fill up ATM Application form available at the branches.

• ATM Banking

You can do banking business using ATM facility beyond our banking hours. So we have
established a network of ATMs across the cities to give you the flexibility to access your
account 24 hours 365 days.At our ATMs, you can conduct the following transactions–

• Balance Enquiry
• Cash Withdrawals
• Statement of Account
• Deposits
• PIN Change
• Transfer of Funds

Balance Enquiry

You can use your ATM card to know your balance in the account.

Cash Withdrawals

You can withdraw up to Rs 15,000/- per day on your ATM Card . You
can also use the fast cash option , which allows you to withdraw money
in mltiples of Rs 500 /-

Statement of Account

You can request a statement of the last 5 transactions on your account

.Your statement of account will be printed on the transaction slip.

Deposit

Our ATMs enable you to deposit cash or cheques into your account at
any time. All you have to do is select the account onto which you want to
make your deposit , fill out a deposit slip, put your cash or cheque into
the envelope provided at the ATM, and insert it into the slot provided.

PIN Change

Using your ATM to change your Personal Identification Number (PIN)

assures you complete security. Your PIN number is not displayed on the
screen, being replaced by crosses to ensure the secrecy of the transaction.

Transfer of Funds

Our ATMs make transferring funds between two of your bank accounts
easy. All you have to do is select the account from which you want to
transfer funds, then indicate the amount of money you want to transfer,
and the account into which you want to make the transfer. Both accounts
must be linked to your ATM Card.

Term Deposits for senior citizen

• Eligibility : A person who has completed the age of 60 years

may be treated as a senior citizen for getting the benefit under the

scheme for senior citizens.

• Verification of Age :At the time of opening of a new deposit account of a

senior citizen, the branch should satisfy about the age through verification of
any of the following documents:-

 School Leaving Certificate

 LIC Policy
 Voters Identity Card
 Pension Payment order
 Birth Certificate issued by the competent authority
 Driving Licence / Ration Card
 • Account Opening Procedure

a) In sole name with nomination (nomination is mandatory) or

In joint name styled ‘ Either or Survivor’ or ‘Former or Survivor’. The

name of Senior Citizen should be in the first name

• Additional Facilities

b) Free D’mat account with no annual maintenance charges of our Bank

c) Free issuance of our Bank’s pay order from Saving Bank Account of Senior
Citizen

d) No Penalty for Pre-mature Withdrawal of Fixed Deposit

e) 100% Loan facility to senior citizen against Fixed Deposit @ 1% interest over
fixed deposit rate

Balance Sheet

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03
Sources of funds
Owner's fund
Equity share capital 326.16 309.29 123.32 59.53 59.21
Share application money - - - - 0.02
Preference share capital - - - - -
Reserves & surplus 1,335.77 555.30 633.61 546.78 482.24
Loan funds
 Secured loans - - - - -
Unsecured loans 11,000.09 6,565.92 4,299.54 4,459.34 256.81
Total 12,662.02 7,430.51 5,056.48 5,065.65 798.27
Uses of funds
Fixed assets
Gross block 273.57 205.28 168.57 134.46 113.95
Less : revaluation reserve - - - - -
Less : accumulated depreciation 132.48 100.05 71.47 49.20 34.16
Net block 141.09 105.23 97.10 85.26 79.79
Capital work-in-progress - - - - -
Investments 6,861.96 2,855.53 1,826.97 2,882.77 706.66
Net current assets
Current assets, loans & advances 692.33 273.31 151.26 73.48 49.17
Less : current liabilities & provisions 2,153.65 1,135.38 470.89 239.67 213.98
Total net current assets -1,461.32 -862.06 -319.63 -166.19 -164.81
Miscellaneous expenses not written - - - - -
Total 5,541.73 2,098.69 1,604.45 2,801.84 621.64
Notes:
Book value of unquoted investments 6,861.96 2,855.53 - - -
Market value of quoted investments - - - - -
Contingent liabilities 1,00,874.15 4,135.36 3,641.62 938.49 184.24
Number of equity sharesoutstanding (Lacs) 3261.56 3092.95 1233.24 595.33 592.13

Interest Rates:

Interest rates on Fixed Deposits for Individual Borrowers

Interest Rates on Deposits

Maturity Periods Less than Rs. 15 Annualised Yield Rs. 15 Lacs and
Lacs Above But
Below Rs. 1
Crore
7 - 14 Days No Quote No Quote 4.50%

15 - 30 Days 4.00% 4.00% 5.00%

31 – 45 Days 5.00% 5.00% 5.50%

46 – 90 Days 5.50% 5.50% 6.25%

91 – 180 Days 6.50% 6.50% 7.25%

181 – 270 Days 7.50% 7.71% 7.50%

271 Days to less 8.50% 8.77% 8.50%

than 1 Year
1 Year & above 9.25% 9.58% 9.25%
but less than 2
Year
2 Year & above 9.25% 9.58% 9.25%
but less than 3
Year
3 Year & above 9.25% 9.58% 9.25%
but less than 5
Year
5 Year & above 9.00% 9.31% 9.00%
upto and
inclusive of 10
Year
Sees 82% growth in current and savings account deposits
 Comparative Analysis of Current Account Features and Benefits of
Private Banks

Kotak ICICI HDFC IDBI AXIS STANDARD

Banks Mahindra CHARTERED
Monthly Rs.25,000 Rs.50,000 Rs.10,000 Rs.50,000 Rs.10,000 Rs.25,000
Average
Balance

No limit 3 Lacs Free upto Rs 5 lacs Rs 3 Lacs No limit

Cash per Rs 3 lacs per per
Deposits month per month month month
or40
transaction
which
ever is
lower
Free , Free upto 30 Free Free upto Free upto Free upto 2 per
Demand Unlimited Rs 6 lacs per Month Rs 5 lacs Rs 3 lacs day
Drafts
Cash Yes , Free Rs 130\ Rs 500\ Rs NA Rs 100
Delivery day day 825\day

Yes NA NA NA NA Daily Rs 1000|

Beat month
Service
Yes Rs 30 Rs 500\ Rs NA Rs 100
Cheque day 825\day
Pick up
Kotak
Mahindra SAVINGS CURRENT ACCOUNT
Bank
ACCOUNT
Kotak Edge Pro Ace Edge Pro Ace
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak No No Yes No No Yes
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak No No Yes No No No
Mahindra
Bank
Kotak Yes Yes Yes Yes Yes Yes
Mahindra
Bank
Kotak Yes Yes Yes
Mahindra
Bank
Kotak No No No No No Yes
Mahindra
Bank
Kotak 10,000 20,00 75,000 25,000 50,000 2,50,000
Mahindra
0
Bank
 HDFC Bank

Features Saving Account Current Account

and
Ben
efits
Regular Saving Saving No Family Plus C Regular Premium
Saving Plus Max Frill Saving A/c A/c C A/c
Account A/c Saving A/c
A/c
ATM Facility Yes Yes Yes Yes Yes No No No
Mobile and Yes Yes Yes Yes Yes No No No
Net
Banking
ATM Facility Yes Yes Yes Yes Yes Yes Yes Yes
International Yes Yes Yes No Yes No No No
Debit Card
Personalised Yes Yes Yes Yes Yes Yes Yes Yes
Cheque
Online Bill Yes Yes Yes Yes Yes No No No
Pay
Sweep in And Yes Yes Yes No Yes No No No
Super
Saver
A/c Statement By mail Monthly Yes Qtly Qty Monthly Monthly Monthly
Facility

AQB 5000 10000 25000 Nil 10000 100000 10000 400000

Comparative Analysis of Different Financial Products of Private Sector
Bank Regarding Current A\c , Saving A\c

Banks Current A\c Saving A\c

Comparative
HDFC Bank 7 12 Analysis of
Minimum
ICICI Bank 6 2 Balances of
Different
ING VSAYA 4 7 Private Sector
Bank
KOTAK 3 6 Regarding
MAHINDRA Current A\c ,
Saving A\c &
Fixed Deposit

Banks Current a\c Saving a\c Fixed Deposit

minimum minimum
Deposit Deposit
HDFC Rs. 10,000 Rs. 5000 Rs. 25,000

Rs. 50,000 Rs. 10,000 Rs. 25,000

ICICI
Axis Rs. 10,000 Rs. 5000 Rs. 10,000

Standard Rs. 25,000 Rs. 15,000 Rs. 50,000

Chartered
Kotak Rs. 25,000 Rs. 10,000 Rs. 25,000
Mahindra
Banks Rate of Interest on Rate of Interest on
Saving A\C Fixed Deposit(more
than 1 years)
Kotak Mahindra 3.5% 9.58 %

ICICI 2.25% 8.25%

ABN AMRO 3.5% 8%

HSBC 3.5% 7.5%

Standard Chartered 3.25% 6.5%

ING Vsaya 3.5% 9.5%

IDBI 3.5% 8.75%

Banks Current & Saving Account

(CASA) Deposits
Kotak Mahindra 2,248 cr
ICICI 63,781 cr
HDFC 54914 cr
Others 22612 cr
 CHAPTER-ІІІ

Research
Methodology

Introduction: This study is carried out to find sales trend/potential of Kotak Mahindra
Bank and its financial Products in Lucknow city for this primary data has been collected
by conducting market survey.
Research Design: A descriptive research design is adopted for this study. Survey has
been conducted with the help of questionnaire to collect primary data. The data has been
collected from retailers and doctors from some areas of Lucknow city such as Hazratganj,
Aminabad, Chowk, Latouche Road, Haider Ganj, Rajajipuram, Gomti nagar and Indira
Nagar respectively. Regarding to this study some of the objectives were framed to find
out the sales trend of Financial Product and Market share of Kotak Mahindra Bank in
comparison with different other private sector banks. For fulfillment of objectives some
hypothesis have been designed. Hypothesizes for this study are given below;
Hypothesis of Study

For these objectives some of the hypothesizes have been framed which are given below;

Hypothesis 1;

H0: There is significant relation between customer preference and bank’s financial
products.
H1: There is no significant relation between customer preference and bank’s financial
products.

Hypothesis 2;

H0: There is significant relation between bank’s financial products and business
development.
H1: There is no significant relation between bank’s financial products and business
development.

Sample Design: Hazratganj, Aminabad, Chowk, Latouche Road, Haider Ganj,

Rajajipuram, Gomti nagar and Indira Nagar are some of the areas in Lucknow city which
are taken for the study. On the basis of pilot study a sample size of 100 respondents have
been taken.

Data Collection: Data is both of primary as well as secondary type. Many previous
research papers, journals, business reviews forms the basis for secondary data. For the
purpose of primary data collection, a set of closed ended questions is designed whereby
in depth interviews of the respondents are done.
 Name of Banks No of Respondents

Kotak Mahindra 50

HDFC 35

ICICI 30

Others 35

Financial products No of Respondents

Saving 48

Current 25

Fixed Deposits 27

Data processing and analysis: After data collection the data analysis is done by
implementing statistical tool named Chi-square test. Chi-square test is used for the
hypothesis testing which were framed for fulfillment of objectives of this research
problem. The level of significance is 5% for hypothesis testing. Degree of freedom varies
regarding to the table format in other words depends on no of column and rows. Apart
from manual calculation, statistical software named SPSS is also used for the calculation
part.

Limitations: Some of the limitations of this project are given below;

• The research is limited to 150 people in some of the areas of Lucknow city.

• It is not accurate data because it is collected from only few people from some of
the areas of Lucknow city.

• The people owe to there work were very busy and due to lack of time they have
not given ample time for this study. Some of them did not entertain me for this
job.

• Some people shown non-cooperative behavior at the time of data collection for
this study.

• Indian Banking System is the vast explanation

• So I feel difficult to collect the data’s, which is related to my topics.

• Shortage of time is yet another limitation of the study.

.
 CHAPTER-ІV

Data Analysis
&
Inference

Name of Banks No of Respondents

 Kotak Mahindra 50

HDFC 35

ICICI 30

Others 35

Hypothesis Testing

Hypothesis testing is done by Chi-square test;

χ2 = ∑k (Oi - Ei)2
i =1
Ei

χ2 = Chi-square, Oi = Observed Frequency, Ei = Expected Frequency, k = number of

categories

Degree of freedom = 3, Tabulated value at 5% level of significance = 7.815

Banks Observed Expected (O – E) (O – E)² (O – E)²\E

(O) (E)
Kotak 50 37.5 12.5 156.25 4.17
HDFC 35 37.5 - 2.5 6.25 0.17

ICICI 30 37.5 -7.5 56.25 1.5

Others 35 37.5 -2.5 6.25 0.17

Calculated Chi-square value( χ2 ) = 6.01

Inference

The calculated Chi-square value is 6.01 which is less than the tabulated value 7.815 thus
the calculated value holds good for null hypothesis and there is significant relation
between customer preference and bank’s financial products.

Market Share

For calculating market share of Kotak Mahindra Bank among other Banks number of
respondents are compared with the total sample size of 150.

23%
34%
Others Kotak

ICICI
20% HDFC

23%

Inference
The market share of Kotak Mahindra Bank is 34% which is highest among other Banks.

Financial products No of Respondents

Saving 75

Current 45

Fixed Deposits 30

Hypothesis Testing

Hypothesis testing is done by Chi-square test;

χ2 = ∑k (Oi - Ei)2
i =1
Ei

χ2 = Chi-square, Oi = Observed Frequency, Ei = Expected Frequency, k = number of

categories

Degree of freedom = 2, Tabulated value at 5% level of significance = 5.991

Banks Observed Expected (O – E) (O – E)² (O – E)²\E

Financial (O) (E)
Products
 Saving 75 50 -25 625 12.5

Current 45 50 -5 25 0.5

Fixed 30 50 -20 400 8

Deposits

Calculated Chi-square value( χ2 ) = 21

Inference

The calculated Chi-square value is 21 which is more than the tabulated value 7.815 thus
the null hypothesis is rejected and there is no significant relation between bank’s
financial products and business development.

Market Share
For calculating market share of Kotak Mahindra Bank among other Banks number of
respondents are compared with the total sample size of 150.

20%

0%
1
3
50%
5

30%

0%

Inference
From the Pie chart it very clear that out of the sample size of 150 about 50% of them
have Saving Account in the Bank .30% have current account and the remaining 20%
have Fixed deposit in the banks.
 Financial Kotak ICICI HDFC Others
Products Mahindra

12 25 20 18
Saving a\c

5 10 17 13
Current a\c

5 8 9 8
Fixed Deposits

Saving a\c

30
ICICI

25
25
HDFC
20 Others
20
18

Kotak
15 Series2
12

10

0
 Inference

From the Histogram it is very clear that out of the 150 respondent surveyed , when it
come to opening of Saving Account more person prefer ICICI Bank in comparison to
other Bank being taken in the survey.

Current a\c
18
HDFC 17

16

Others
14
13

12
ICICI
10
10

Kotak
6
5

Inference

From the Histogram it is very clear that out of the 150 respondent surveyed , when it
come to opening of Current account more person prefer HDFC Bank in comparison to
other Bank being taken in the survey.
Fixed Deposits

10
HDFC
9
ICICI Others
8
7
6
Kotak
5
9
4 8 8
3
5
2
1
0
1 2 3 4 5 6 7

Inference

From the Histogram it is very clear that out of the 150 respondent surveyed , when it
come to Fixed Deposits the preference of the customer for Bank taken in the survey is
mixed.
 CHAPTER-V

Interpretation
& Findings

• After data analysis and hypothesis testing it is evaluated that null hypothesis holds
good. and there is significant relation between customer preference and bank’s
financial products As, the calculated value of χ2 is less than the tabulated value ,
null hypothesis holds good .
• After data analysis and hypothesis testing it is evaluated that null hypothesis does
not holds good the null hypothesis is rejected and there is no significant relation
between bank’s financial products and business development. As, the calculated
value of χ2 is more than the tabulated value , null hypothesis does not holds good.
.

• As per the survey conducted, it is to be noticed a good sector of the people prefer
to be customers of nationalized banks. This result can be very well explained by
the fact that nationalized banks are acquainted with the Government and that ups
and downs in business will not affect the existence of the bank. Also the RBI too
has good control over the working of these banks and there for the customers feel
a sense of security in investing in these banks. However it is also seen that a good
percentage of people also opt for private banks such as ICICI, bearing in mind the
amount of experience they posses in the field of banking. These private banks,
even though living with nationalized banks, which have the lion’s share, appear to
be huge market players and market turners.

• As per the data analysis it was seen that KMBL is prioritizing the premium class
and middle class and not to the needs of lower class people the reason behind
doing so is, that by targeting the premium class people they can have a good float
because by maintaining float they can lend in the call money market or they can
utlize the money by keeping in the currency chest. As KMBL is not targeting the
needs of lower end customers it is because maintaining account for low range
customers will lead to increase in the operating cost of the bank and they don’t
have that type of income to go for this option. As banks operation has recently
started in LUCKNOW region so they are initially targeting the higher end
customers.

• Where as if we talk about ICICI, HDFC bank then they are targeting to both
higher and lower end customers because they do have wide accessibility of
ATMS and also they have more branches then Kotak Bank.
As these two banks has there operations from a long time if compared to
Kotak Bank that’s why customers or people have a good awareness of these
two banks

• The range of products of Hdfc ,ICICI, is much more than that of Kotak
Mankindra that’s why people wants to open there account or have relation with
these two banks as they can find all there financial needs under a single roof.

• According to the survey conducted on which banks are people associated with it
was seen that nationalized banks achieved the more or less same amount of
preference ratio as seen above. In the sample size of 150, a huge portion of people
 are associated with nationalized banks. This particular survey also shows the same
results for the rest of the banks, in the order “private banks, international banks
and co-operative banks” respectively.

• On a global scale technological innovations have been the main reasons for
International banks to become market drivers and leaders, but the same cannot be
said about India. Here improvement of technology has not yet played over the
minds of the people. It can be said that only the higher society of the Indian
population would consider technological innovations to be very important in
terms of deciding the importance of the bank. The other parts of India would
hardly consider it to be reason in selecting the bank.

• Keeping in mind the above analysis most of the people surveyed in this sample
were not even aware of the different services provided by the bank. Mobile
banking and net banking were Greek and Latin to them. Such people would keep
technology in mind to select the bank. But on the other hand the people who
understand the importance of technology recognized the various services that are
provided and also mentioned that technology today in India has made banking
easier. However a huge sector of the people surveyed knew the importance of an
ATM or Credit cards, but the usage of these facilities was not found to be up to
the mark.

• As seen at the start of this particular analysis the type of bank people are
associated with stays the same even when given the choice of considering a
change of bank. People who are associated with their particular bank do not wish
to change as the reasons for their selection are satisfied by the bank. The few
people who were not satisfied with their particular bank, their reasons for non
satisfaction range from bad customer service to lack of technology to limited
schemes provided to them

SUGGESTIONS
• First of all the changes in the attitude of the staff should be arising in the
banks.
 • Customer care service should be implemented in the voluntary method.
• New technologies must be used in every service and functions made by the
bank.
• Computerization system should be used in every function on the bank.
• There should be transparency in all services offered by the banks.
• The operations of all the banks should be in 24 hrs.
• Online transactions and information technologies must be introduced and
made in use in every bank.
• They should try to avoid the credits frauds.
• E-commerce and E-banking must be introduced in every bank

BIBLIOGRAPHY
Websites
 www.google.com
 www.rbi.org
 www.banknetindia.com
 www.thehindubusinessline.com
 www.kotakMahindra.com

Libraries referred
 College library
 Reserve Bank of India library (Did not
allow us to refer)

Books/Journals/Bulletins
 Banking Finance
 RBI Bulletin
 Indian Banking
 Commercial Banking in India
 Co-Operative Banks
 Economic Times