A PROJECT REPORT ON KOTAK MAHINDRA BANK WHAT MAKES KOTAK DIFFERENT FROM OTHERS-A COMPARATIVE STORY

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SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE REQUIREMENT FOR THE AWARD OF THE

POST GRADUATE DIPLOMA IN MANAGEMENT

(JIMS KALKAJI, NEW DELHI)
(SESSION -2011-2013)

SUBMITTED BY ROHIT KUMAR ROLL NO. -86 UNDER THE GUIDANCE OF

INTERNAL MENTOR
Ms. Neha Gupta

EXTERNAL MENTOR
Mr. Ritesh Srivastava

CERTIFICATE
This is to certify that the MENTORSHIP PROJECT REPORT entitled

KOTAK MAHINDRA BANK WHAT MAKES KOTAK DIFFERENT FROM OTHERS-A COMPARATIVE STORY Submitted in partial fulfillment of the requirements for the POST GRADUATE DIPLOMA IN MANAGEMENT FROM JIMS KALKAJI, NEW DELHI

By ROHIT KUMAR

has worked under my supervision and guidance and that no part of this report has been submitted for the award of any other Degree, Diploma, Fellowship or other similar titles or prizes and that the work has not been published in any journal or magazine. Certified,

INTERNAL MENTOR MENTOR

EXTERNAL

(Ms. NEHA GUPTA)

(Mr. Ritesh Srivastava)

ACKNOWLEDGEMENT
Effort is useless without guidance and I am very graceful to all those persons who helped me in making my project. I take this opportunity to acknowledge my indebtedness to all who guide me in carrying out my project work. The successful completion of any task would be incomplete without mentioning the names of peoples whose constant guidance and encouragement has crowned all of my effort with the great success. Firstly I would like to thank Mr. Satyendra Singh (Branch sales manager of Raj nagar branch) for giving me the golden opportunity to carry out my summer internship in Kotak Mahindra Bank, Raj Nagar Branch and giving me his valuable guidance and support to complete my project. I would also like to thank Dipak Thapliyal,Raavi,Neeraj,Raman Bhalla to guide me. All of the staff members are also very helpful for me during my summer internship. They have shown great cooperation for me. Apart of all of all other persons, there was the unconditional support for me from my family who enabled me to achieve fullest extent of my endeavor. I have been really fortunate regarding my summer training because I got an opportunity to work with on of the leading bank of this country. During the short span of two months, I have learnt a large number of things about the business world-the sweet & bitter truth.

Thank you

MANI RASTOGI

CONTENT
1. Introduction 2. Executive summary 3. Kotak Mahindra- As a Group 4. Key group companies and their businesses 5. The growth story various milestones 6. Kotak Mahindra Bank- The profile 6.1 Corporate identity 6.2 Board of Directors 6.3 Features of various savings account 6.4 Retail Banking 7. Research objective 8. Research Methodology 9. Research Design 9.1. 9.2. 9.3. Steps in experimental research design Explanations given by managers Data sources

10. .Findings and Analysis 10.1. Comparative Analysis 10.2. SWOT Analysis 11. Suggestion and Recommendation 12. Conclusion 13. Questionnaire

14. Bibliography 15. Remarks

INTRODUCTION

Summer internship is the most vital phase in the entire course of M.B.A (Master of Business Administration).During training trainees gets a chance to apply their theoretical knowledge in the real field. This programme provides a job experience to the pursuers and gives a chance to take the essence of the corporate world. The growth of Indian banking sector has been more qualitative and it is expected to remain the same in the coming years. The private sector Bank in India are witnessing immense progress. They are leaders in internet banking, mobile banking, phone banking, ATMs. On the other hand the public sector banks are still facing the problem of unhappy employees. There has been a decrease in of 20 percent in the employee strength of the private sector in the wake of the VRS (voluntary retirement schemes). As far as foreign banks are concerned they are likely to succeed in India. The researcher took his project in Kotak Mahindra Bank, Raj nagar branch, Ghaziabad, Indias first financial institution converted into commercial bank. Researcher has done his project on the topic WHAT MAKES KOTAK DIFFERENT FROM OTHERS - A COMPARATIVE STORY.

EXECUTIVE SUMMARY

With the relation to the project given to me entitled by What makes Kotak different from others- A Comparative story, which deals with the savings account features and the response of customers towards Kotaks saving account. The features of saving account and responses were measured by conducting a survey through telephone and personally. The responses were taken with the help of desired questionnaire. The primary data was collected by choosing a sample size of 300 respondent of various places. The survey was done by filling up questionnaire through respondent after applying observation method. As Kotak Mahindra Bank is in class banking so responses were taken from those persons who are working with reputed companies at higher position. The researcher bought out the facts like the quality of saving account and responses towards that account in the market field. This research also bought the facts like where Kotak Mahindra Bank has to improve their service & what are the steps can be taken to improve the service & more specifically to increase their market share and potential as per existing market in concerned.

UDAY KOTAK

KOTAK MAHINDRA- AS A GROUP

Kotak Mahindra is one of Indias leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of corporates and individuals. As on June 30, 2006, the group has a net worth of over Rs. 2,840 crore and the AUM across the group is around 182.3 bn and employees over 7800 in its various businesses. With a presence in 264 cities in India and offices in New York, London, Dubai and Mauritius, it serves a customer base of over 1.6 mn. The group specializes in offering top class financial services, catering to every segment of the industry. The group include these various service areas: o BANK o CREDIT CARDS o LIFE INSURANCE o MUTUAL FUNDS o CAR FINANCE o SECURITIES o INSTITUTIONAL EQUITIES o INVESTMENT BANKING o INTERNATIONAL BUSINESS o KOTAK PRIVATE EQUITY o KOTAL REALITY FUND

KEY GROUP COMPANIES AND THEIR BUSINESSES Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank-Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities
Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and coordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on well-researched expertise and financial products to non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 16,100 crore and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent

Group structure

THE GROWTH STORY VARIOUS MILESTONES

1986- Kotak Mahindra Finance Limited started the activity of bill discounting 1987- Kotak Mahindra Finance Limited entered the lease and hire purchase market 1990- The auto finance division is started 1991- The investment banking division is started 1992- Entered in the funds syndication sector 1995- Brokerage and Distribution business incorporated into a separate companyKotak securities.Investment banking division incorporated into a separate companyKotak Mahindra Capital Company 1996- The auto finance business was hived off into a separate company- Kotak Mahindra Prime Limited. Kotak Mahindra took a significant stake in Ford Credit Kotak Mahindra Limited for financing ford vehicles. The launch of Matrix Information Services Limited marks the groups entry into information distribution. 1998- Entered 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 launched its on line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001- Matrix sold to Friday corporation Launches Insurance Services 2003- Kotak Mahindra Finance Ltd. Converted to a commercial bank- the first Indian company to do so. 2005- Launched India Growth Fund, a private equity fund 2006- Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

KOTAK MAHINDRA BANK

Established in 1985, Kotak Mahindra is one of the Indias leading financial institutions, offering complete financial solutions. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individual and corporate. The bank is headed by Mr. K.M Ghendra as chairman and Mr. Uday Kotak as Executive Vice Chairman and Managing Director. Dr. Shankar Acharya is the chairman of the board of directors in the company. The bank has its registered office at Nariman Bhawan, Mumbai. Creating Banking history Established in 1985, the Kotak Mahindra Group has been one of Indias most reputed financial organizations. In February 2003, Kotak Mahindra Finance Ltd., the groups flagship company was given the license to carry on banking business by the Reserve Bank of India. The approval creates banking history since Kotak Mahindra Finance Ltd is the first company in India to convert to a bank. The complete bank At Kotak Mahindra Bank, we address the entire spectrum of financial needs for individuals and corporates. We have the products, the experience, the infrastructure and most importantly the commitment to deliver pragmatic, end-to-end solutions that really work. * A license authorizing the bank to carry on banking business has been obtained from the Reserve Bank of India in terms of Section 22 if the Banking Regulation Act, 1949. It must be distinctly understood, however, that in issuing the license, the Reserve Bank of India does not undertake any responsibility for the financial soundness of the bank or the correctness of any of the statements made or opinion expressed in this connection.

CORPORATE IDENTITY

BOARD OF DIRECTORS

Director Additional Director Wholetime Director Director Wholetime Director Director Director Non-Executive Part Time Chairman Director Wholetime Director

ANAND MAHINDRA ASIM GHOSH C JAYARAM CYRIL SHROFF DIPAK GUPTA K M GHERDA PRADEEP N KOTAK SHANKAR ACHARYA SHIVAJI DAM UDAY KOTAK

Savings Account
Savings account is one of the important strength of Kotak Mahindra Bank. The features were more attractive than any other private bank. They are designed in such a way so that banking is convenient to all. Kotak Mahindra Bank provide various account but according to the project work data is collected referring to these two types product:Kotak Pro Saving Account Average quarterly balance Rs. 20000

Global Debit Card Kotak bank provide global debit card with VISA logo. The benefit of this card is that anyone can access his/her account through other banks ATM without paying any extra amount Net Card Net card is the safest option for those who use online shopping against cyber crime. Card is created according to the amount of purchase. Net card no. is given on the behalf of Debit card/Credit card. This card is valid for 24 hours and if there is any remaining balance that will automatically credited to the account.

Kotak 2-way sweep Daily balances, above the double of AQB level in Pro savings account are automatically swept out into fixed deposit in the multiple of 10000 Rs for 181 days at prevalent rate of interest. Free Home banking This service is given for providing time saving banking without paying any extra charge to the bank. Free at par cheques kotak Mahindra bank provides At-par cheque book free to its client. This At-par Cheques are treated as local clearing cheques. Free electronic fund transfer Funds can be transferred easily to third party through electronic fund transfer facility. There is no need to waste time and money on demand draft making/couriering charges. Family savings account The kotak pro savings package provides family savings account facility to its customers. They have to give only Rs. 5000 for opening an account of their family members. Free At-Home Services These services is related to making utility bills payments like electricity, mobile, water and also get documents delivered and picked up from bank. Phone banking Kotak Mahindra bank provides phone banking facility to its customers for meeting their banking requirements. Customers contact easily through 24 hours toll free number.

Kotak Edge Savings Account Average quarterly balance Rs. 10000 Global Debit Card Kotak bank provide global debit card with VISA logo. The benefit of this card is that anyone can access his/her account through others banks ATM without paying any extra charge. Net Card Net card is the safest option for those who use online shopping against cyber crime. Card is created according to the amount of purchase. Net card no. is given on the behalf of Debit card/Credit card. This card is valid for 24 hours and if there is any remaining balance that will automatically credited to the account.

Kotak 2-way Sweep Daily balances, above the double of AQB level in Pro savings account are automatically swept out into fixed deposit in the multiple of 10000 Rs for 181 days at prevalent rate of interest

Free home banking This service is given for providing time saving banking without paying any extra charge to the bank. Home banking facility includes free cash/demand draft delivery, free Cash/cheques pick up. Two transactions in a day is free. Free at par cheques kotak Mahindra bank provides At-par cheque book free to its client. This At-par Cheques are treated as local clearing cheques. Free electronic fund transfer Funds can be transferred easily to third party through electronic fund transfer facility. There is no need to waste time and money on demand draft making/couriering charges.

Free At-Home Services These services is related to making utility bills payments like electricity, mobile, water and also get documents delivered and picked up from bank.

Phone banking Kotak Mahindra bank provides phone banking facility to its customers for meeting their banking requirements.Customers contact easily through 24 hours toll free number.

KOTAK SAVINGS ACCOUNT

CUSTOMER PROPOSITION

KOTAK MAHINDRA GROUP

Indias leading financial conglomerate Group networth : INR 63.27 billion 5.9 million customer Over 20,000 employee Experience of over two decades in financial services prior to conversion in to bank Diverse areas of business in financial industry Indias first NBFC to be awarded banking license Strong financial fitch rating of AA+ for the bank 217 branches in India ,in 126 location

GLOBAL FOOTPRINTS

do not want to keep worrying about the idle balance in my account Activmoney
Balance above a threshold transferred to a fixed deposit In case of insufficient fund in the saving account ,funds in fixed deposit are swept in to saving account Swept in/ out in units of Rs 10,000 Sweep in on last in first out basis , thus ensuring maximum interest gain No pre-mature withdrawal penalty Tenure of fixed deposit :181days Auto renewal of fixed deposit on completion of tenure

UNIQUE PROPOSITION I do not like filling forms to transact in mutual funds Investment Account
Allows transaction in MF shemes by placing an instruction with Kotak Mahindra Bank Mutual fund schemes of over 20 asset management companies available No separate debit instruction Instruction can be placed to purchase or redeem MF units and also switch between schemes of an AMC,make Systematic Investment(SIP) Latest NAVs and percentage gain or loss Research report and recommended funds available Free of charge

UNIQUE PROPOSITION I do not want to wade through piles of statements to review my investments and asset allocation. Wealth statement
Summary statement Saving/current account Fixed deposits Mutual funds Demat account Pie chart of portfolio

Product wise detail statements Default frequency: quarterly

UNIQUE PROPOSITION I do not want to worry about the misuse of credit card when I shop online Net@card
One time use virtual card Prepaid card created by debiting bank account Can be used on any website that accept VISA cards Expirss after use,making it impossible to misuse Min. Rs.100,Max. Rs 50,000 Money automatically credited to SA after 24-48 hrs Free of charge

I do not want to worry about paying bills on time BILL PAYEMENT

Electronic bill presentment and payment services Source and hassle free Over 115 billers available for registration Auto pay option to automatically make payment on due date Receive alerts via Email/ SMS for any biller receipt of new bill and status of bill payment Free of charge

I do not like to go the ATM either

Home banking
Cash pick up/ delivery instrument pick up/ delivery Request received between 10 am to 4 pm serviced on the same day or else next day Request accepted over phone banking only for PIN verified customers Service fulfillment only at the address registered with the bank Cheques picked up will be sent for clearing on the next working day

Service fulfillment TAT for customers

Metros Within city limits Outside City limit 3Hrs 4Hrs Within city limits Outside City limit Non-Metros 2.5 Hrs 4 Hrs

 I do not want to keep writing cheques National electronic fund transfer

Useful to transfer the non-kotak bank accounts Over 52000 branches across 89 banks covered Offered from all Kotak branches Normally banks take a 24-48 hours to credit the beneficiary account No min. value ;max value limit : Rs. 1 lac per day Info required : bemefiary bank and branch name, A/c type and A/c no.

 I do not like to go the branch Phone banking

Service available Enquiry product information Charges , interest rates Open a term deposit Initiate standing instruction Place stop cheque payement instructions Request a cheque book and account statements Fund transfer between Kotak accounts only

 I do not like to go the branch

Mobile banking
Access the bank accounts and investment accounts at fingertips,anytime,anywhere. Get a secure and user friendly GPRS based mobile banking platform.

Accounts Bank account Investment account DEMAT account Available Available Available

Mobile banking

ANY BRANCH BANKING

Transact on any Kotak Mahindra Bank branch in India Nature of transaction at non-home branch include Demat draft Cash deposit Cash withdrawal RTGS/NEFT Balance enquiry Cheque deposit Funds transfer

Kotak savings account variants

Now that you know what worries you do not have to out up with when you open KOTAK SAVING ACCOUNT,you may want to give some through to how many free banking services would you like to avail. At kotak Mahindra Bank we believe that everyone has the right to everyone has right to worry free banking. So do take a closer look at the features of these acconts and decide which one fits your needs the best. OPEN KOTAK MAHINDRA PRO,ACE,EDGE ACCOUNT AND LEAD A WORRY FREE LIFE.

I DO NOT LIKE TO GO TO THE BRANCH

NET BANKING
Account details Check balances Cheque book request Cheque status Detail of uncleared funds Demat account details Open term deposit

SMS Alert
Automatic updates on either mobile or E-mail Large debit alert Large credit alert Balance below product AQB alert Standing instruction (SI) Failure Alert Free of cost

I do not want to keep writing cheques Real time gross settlement

Use ful to transfer funds to non kotak bank accounts 52000 branches across 89 banks covered Offered from all kotak bank branches Ideally the credit is singed is slighted within 30-45 mnts Min. value of the txn Rs. 1 lakh; no max. limit Service is available frm 9.00 hrs to 15.00 hrs on week days and from 9.00 hrs to 12.00 noon on Saturday

 I do not want to keep writing cheques VISA money transfer

Fund transfer to any Domestic VISA debit/credit card Faster remittance in comparision to cheques and DDs Transfer money 27 million visa cards across 150 cities Can be used to pay credit card bills or credit any other bank account The transfer normally within 2 working days Free of cost The transaction limit for this facility would be as below Minimum limit-Rs. 100/Maximum limit-Rs.1,00,000/-

 I do not want keep writing cheques Fund transfer

Fund transfer to Kotak Accounts (self and third party) Real time fund transfer Applicable for up to Rs. 1 lac per day

Access all VISA ATM

Access 1 million visa ATMs world wide 26 million merchent establishment world wide Maximum daily purchase limit (25,000 to 1,75,000) Maximum daily purchase limit (25,000 to 1,75,000) Add on cards issued for for nomitated persons

Additional feature for gold debit card

Fuel surchrges waiver at any petrol pump Photo card

 Attractive VISA gold offers and discounts Free access to international VISA ATMs

Retail banking
Kotak Mahindra offers complete solutions that address all financial requirements of an individual as well of a firm. From everyday banking to long term investment ---the offerings of Kotak Mahindra covers it all. This wide range of products is delivered to customers with a genuine understanding of their specific need and warm, personalized service.

RETAIL BANKING

DEPOSITS

INVESTMENT SERVICES

CONVENIENCE BANKING

SAVINGS ACCOUNT

CURRENT ACCOUNT

TERM DEPOSIT

RESEARCH OBJECTIVES
The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. As the project title is WHAT MAKES KOTAK DIFFERENT FROM OTHERS- A COMPARATIVE STORY so relating to this title the research objectives are:1) Firstly to identify the services provided under savings account 2) Inspire of good features why it is not preferred? 3) To find out the possible solutions of the overcoming problems 4) Find the basic requirements of the customers they require their saving account should have. 5) To know the customers awareness about the services their bank is providing.

6) To know the customers satisfaction about the services provided by their bank. 7)Determine the additional facilities customer requires in their saving account

SWOT ANALYSIS 1.6 SWOT ANALYSIS OF KOTAK MAHINDRA BANKS SAVING ACCOUNT
Kotak Mahindra bank has rapidly spreading its brand name over the business class since the year of establishment which means Kotak Mahindra bank is also becoming the major player in terms of private banking and tried to be best in terms of services to be provided to the customers in such a stuff competition .

So ultimately as every company, Kotak Mahindra Bank has also some strength, weakness, opportunity and threats on behalf of which a company make its strategy to survive in the market and compete with other players.

I researched the market for 6 weeks and found that somewhere Kotak is getting advantage and somewhere is lacking behind and I would like to explain the reasons behind in sequence as follow:

Strength: Kotak Mahindra Bank serves all the facility of investing money under one roof like banking,

mutual fund, insurance, demat a/c etc. Kotak gives the fix deposit return on saving a/c*. Gives the Free home Banking*. Kotak bank gives the free demand draft facility*. Gives the facility to draw the money from any bank ATM without any extra charges*. Gives the facility of NET CARD free of cost.

*conditions apply.

Weakness: Average Quarter Balance is very high. There are less no. of branches and ATMs of Kotak Mahindra Bank.

Opportunity: No. of business class people is increasing. Now a days people are looking for different schemes for investing their money like mutual

fund, demat, insurance etc. Home banking is getting preference due to less time consuming. People like demand draft rather than cash transaction.

Threats: Other pvt. Banks also are paying attention to the business class. Other banks accept the far less amount of money for AQB of saving a/c. Other players have more no. of branches & ATMs. Almost all private banks are older than Kotak. Bank like ICICI and HDFC launches several schemes for people which includes women and

senior citizens also. No. of schemes offered, to the customers provided by these banks are more than Kotak bank. Most of the companies have already tied up with particulars bank which provide the 0

Balance a/c to their employees.

RESEARCH METHODOLOGY
RESEARCH DESIGN DATA SOURCES : : Casual Research Primary data Secondary data PRIMARY DATA : Observation method Questionnaire Telephonic survey SAMPLE SIZE SURVEY AREAS : : 300 shastri nagar Raj nagar Govinda puram Kavi nagar RESEARCH INSTRUMENT : Questionnaire

RESEARCH METHODOLOGY
Primary Objective(s)
The Basic objective of cash management is two fold: To meet the cash disbursement needs (payment schedule); To minimize funds committed to cash balances.

These are conflicting and mutually contradictory and the task of cash management is to reconcile them.

Hypothesis:
1. Customers have basis of preference in selection of the final Kotak Mahindra Old Mutual Life Insurance 2. The choice of the Kotak Mahindra Old Mutual Life Insurance might have an effect either of the personal preference or the country of origin 3. The final decision is based on prior experience

Sample Size:
The size of the sample was around 80 people considering the time constraint. Data Sources The research involved gathering Secondary data as well as Primary data. For the purpose two types of survey was conducted by me to collect the data Customer survey and Consumer survey

Primary Data Consumer survey was done to know their purchasing behaviour because they are the one who constitute the market and are the target of the business . In Insurance Industry untill and unless we have the knowledge of the consumer behaviour and factor which influence them to buy a paticular brand ,companies cannot focus upon the target market. Hence a consumer survey was done to know their wants, purchasing power, and buying habits in order to segment the market , and based on this consumer profile was identified.

Secondary Data Secondary data regarding sales figures, promotional expenses and other related expenses was collected from the companys own record to analyse the impact on sales due to the running schemes and make cost benefit analysis.

Scope of the Study

Both primary and Secondary data has been be used for the study. Primary data was collected through direct interaction with the companys finance and accounts department. If needed schedule/questionnaires would be devised to get the information on all the relevant areas of the study such as receivable management, inventory management, management of cash etc. And I collected the data from the secondary sources comprising Annual Reports of the firm, other journals and peridocials. Apart from the conducting this research work on the basis of these informations, various techniques of financial management e.g., comparative statement, trend analysis and ratio analysis etc. were used in the present study. To present a broad view so far the purpose of the analysis and to make it easy to understand the problem/concept of a few graphs and tables shall also be presented. In each chapter, the analysis has been compared with actual management practices of the company under study.

Limitation of the Study

The present study is limited to one Co., i.e. Kotak Mahindra Life Insurance Ltd., and covers a period from 2007 and 2008 due to limitation of time and accessibility to data base. The authenticity of the suggestions and recommendations depend upon the rationality of the data provided to me. Have to rely upon the data supplied.

 Executives are not ready to part with the information beyond a limit.

RESEARCH DESIGN
Research Design may be described as a series of advance decisions, when taken together, comprise a master plan or model for conduct of investigations. The research was done through collection of data & then the analysis was done using these data. The method of research used by researcher is Causal or Experimental Research, to determine the nature of the relationship between casual variables and effect to be predicted.

TECHNOLOGY

COMPE TITORS

PRODUCT

SERVICE

This diagram shows that competition is influenced by technology, product and service. These three factors are very important and lack of any one these may harm the position of the organization in the market. To complete with the competitors the product made should be of good quality, technologically advanced and provide better services than others. Kotak Mahindra Bank is technologically advanced bank. The savings account product of the bank is having various good features which give sound services to the customers.

Steps in Planning Experimental Design 1. SELECTION OF THE PROBLEM

Selection of the problem properly is most important regarding conducting any research. If problem is not properly identified the result coming out of analysis may go in wrong direction and give wrong result. While conducting the survey the researcher get an insight that in spite of all attractive features the savings account product of kotak Mahindra Bank is not well accepted in the market.

2. PROPER DESCRIPTION OF PROBLEM

Kotak Mahindra Bank provides various facilities to its clients in savings account. They provides complete convenience banking at free of cost. There are some factors which customers look before opening an account:LOCATION Location is one of the important factors which attract a customer towards a bank. A customer prefers those banks which are near to their office and home. As Kotak Mahindra Bank doesnt have more number of branches, they are not getting good number of clients.

AVERAGE QUATERLY BALANCE

Average quarterly balance (AQB) is another important thing which a customer look. Kotak Mahindra Banks minimum AQB for savings account is Rs.20000. As most of the banks like ICICI, HDFC etc are providing a saving account with much less AQB so customers would not like to invest.

POPULARITY
Kotak Mahindra Bank is not very popular bank because it is now on its developing stage. Many of the respondents dont know the bank. For these they hesitate to invest lump sum money in an unknown or newly formed bank.

ZERO BALANCE ACCOUNT

Kotak provides you zero balance account if you are working as a manager of 500 listed companies. While documentation they demand for a cheque of Rs. 20000 for account activation which makes the customer confuse. They argue that if the bank provides zero balance account then why they have to pay that amount.

EXPLANATIONS GIVEN BY SALES MANAGERS OF RAJ NAGAR BRANCH

1. Kotak Mahindra Bank believes in class banking not in mass banking. The AQB of Rs.20000 is not a big amount for the class peoples and after paying the amount they are receiving very high class facilities. And those who are not able to afford Rs.20000 AQB, for them there is another product of saving account. For getting something better you have to pay more. 2. Kotak Mahindra Bank opening various branches at various locations to serve more customers. 3. Various advertisements, promotional activities are going through to make the bank popular. 4. According to RBI norms no savings account can be open without any deposit, so thats why Rs.20000 is needed. It was just like keeping money from one pocket to another pocket. 5. The facilities given by Kotak Mahindra Bank are far better than other competitors.

SAMPLING
Sample Size
Sample size was taken of 300 respondents, 200 through questionnaire and 100 through telephone.

Sampling Technique
The collected samples were the stratified samples.

Survey Area
Raj Nagar Shastri Nagar Kavi Nagar Govinda Puram

Research Instrument
The researcher instrument was the desired questionnaire. The questionnaire was contained with 14 questions. All of them were close ended questions.

Finding and Analysis

1. How often do you visit your bank?

Options Daily Weekly Monthly Rarely

Response (%) 1 5 26 68

120 100 80 60 40 20 0 1 2

rarely monthly weekly daily

The response of this question shows that majority of respondents visit their banks rarely. Today many banks provide convenience banking to their client so that visit to the bank doesnt require.

2.

In which bank you like to open an savings account ? Response 25% 21% 14% 12% 9% 19%

Option ICICI HDFC SC HSBC CITI KOTAK

citi 9% kotak 19% hsbc 12%

icici 25%

sc 14%

hdfc 21%

The response from this question shows that today the most nearest competitors for kotak are HDFC and ICICI bank but kotak is not so behind and if Kotak is running on the same speed it will be ahead from its competitors.

3. Does your bank provides free of cost ATM services while using other bank ATMs? Options Yes No Never Try Response (%) 45 35 20

45 40 35 30 25 20 15 10 5 0 Yes No Never Try

Response (%)

The analysis came out of this question is that most of the respondents are getting this facility but many persons are not getting this facility so there is good opportunity for Kotak to differentiate itself with others.

4. Does your bank provide you free home banking? Options Yes No Not aware
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
se (% )

Response (%) 35 40 25

The analysis came out this question is that 25% respondents are not aware of the concept as they never tried for that service. Among them who are aware of the concept 40% says that their banks provide but charge for that and rest of all said that they are getting it free.

Yes

No

Not aware

es p

5. Does your bank provide you interest on fixed deposit in your savings account? Options Yes No Not applied Response (%) 30 40 30

45 40 35 30 25 40 20 15 10 5 0 Yes No Response (%) Not applied 30

30% of the respondents not being aware of this service so they never applied for that. 40% of the respondents said that they are not getting such kind of facility from their bank. Rest 30% said that yes their bank is providing this facility to them.

30

6. Does your bank provide DD free of cost? Options Yes No Not tried Response 40 50 10

60 50 40 30 20 10 0 Yes No Response Not tried 10 40 50

The analysis came out this question is that 50% respondents are paying making charger for their DD, it is not free for them. 40% respondents are getting DD free of cost from their banks and rest 10% said that they have never tried for this facility.

7. Do you use net banking? Options Yes No Response (%) 60 40

120 100 80 60 40 60 20 0 Response (%) Yes No 40

Because we targeted most of the managers so they gave positive answer for that question. 60% of the respondents are using net banking and rest 40% are not using.

8. Does your bank provide you any branch banking? Options Yes No Response 85 15

90 80 70 60 50 40 30 20 10 0 Response No Yes

The answer of this question was almost same for the respondents. All banks are providing this facility expect some banks. 85% said positive and 15% negative for this question.

9. Does your bank provide you free At par cheques? Options Yes No Response (%) 90 10

120 100 80 No 60 40 20 0 Response (%) Yes

Here the response shows that 90% of the respondents are getting this facility and rest 10% are not getting. Note: facilities like on line net card and at home services facility is only provided by Kotak Mahindra Bank so most of the respondents have no knowledge about these services.

COMPARATIVE ANALYSIS
SL.NO Features/ ICICI benefits Bank
1 2 3 AQB Debit Card Charges Other ATM uses Branch Banking Cheque Book charges Cheques bounce charges Free Accidental Insurance Utility payment Photo card charges DD charges Phone banking No of branches Branch timings Life insurance connection Rs.5000 Rs.99 Rs.50 Allowed No Rs.50 party cheques No Yes Rs.100 Rs.2 per 1000 Yes 573 8 to 8 ICICI Prudential

HDFC HSBC Bank Bank

Rs.10000 Rs.250 Rs.55 Allowed Rs.2 per leaf Rs.50 party cheques No Yes No Rs.2.50 per 1000 Yes 531 10 to 3 HDFC Standard Life Rs.10000 Rs.150 Rs.55 Allowed No Rs.150 self cheques As availability Yes No 0.35% of the amount Yes 150 9 to 3 TATA AIG

ABN KOTAK AMRO

Rs.10000 Ist year free Rs.200 next year Rs.40 Allowed No Rs.100 self cheques No Yes No 0.25% of the amount Yes 16 10 to 7 AVIVA Rs.10000(Edge) Rs.20000(Pro) Ist year free Rs.50 next year Free with HDFC. Visa free with any bank Allowed No Rs.300 self cheques No Yes No Free upto 5 lac Yes 182 9.30 to 4.30 Kotak Mahindra Insurance Corporation

4 5 6 7 8 9 10 11 12 13 14

SUGGESTIONS
1. A customer should always want to invest their money in those banks having large number of branches and ATMs comparing to other banks, they refer those banks which are near to their location. Kotak Mahindra Bank is a new bank and it has less number of branches and ATMs. The bank should open more locations and ATMs and it is opening fast. 2. kotak Mahindra Bank is in class banking segment. It provides class facilities to its customers. The AQB limit is Rs.20000 is keeping in eye class customers, but other banks are providing savings account at less AQB although their service is not of good quality but customers are preferring less AQB, so it shows if bank will decrease its AQB limit then it will get more customers. 3. To convince class customers, employees are needed good personality and effective communication skills. Persons who are working in good companies and having good position, who dont have much time, are our target persons. So employees should be trained to convince these high profile customers. 4. Taking feedback is must for service providers. So bank should take feedback regarding their service and asked for more valuable suggestions to make service better. 5. Bank should introduce promotional activities at time to time and also introduce special schemes for senior citizens and old ladies and widows. 6. Every person wants to see his money grow faster and expects better returns. To know customers dream bank and his expected services, bank should conduct surveys. These surveys can make bank able to take an edge over other banks.

CONCLUSION
Research work cannot be start without any objective and cannot be completed without any conclusion. These two are the wheels of cycle, the presence of both are must. The survey was mainly conducted to know about the features of Savings account which most of the customers want. At the end of the research the conclusion came out is that the features of Kotak Mahindra Banks saving account both pro and edge is very attractive and beneficial for the customers. These features are providing total convenience banking to their customers. But there are some constraints also which are stopping the bank to serve its customers, these factors are high AQB, less number of branches and ATMs, and also it is a new bank so right now it is not so much popular. For these factors bank is facing competition from other banks although it is providing good services. As we know that time is needed for establishing in any market. Kotak Mahindra Bank is also new and it will take some time to be popular in the market. But for these we have to make great effort as we are doing. And making the statement true THINK INVESTMENT THINK KOTAK

QUESTIONNAIRE
NAME OF THE RESPONDENT: ADDRESS OF THE RESPONDENT: PROFESSION: CONTACT DETAILS: E-MAIL ID: ANNUAL INCOME: BELOW 3LAK 3-5LAK 5-7LAK ABOVE 7 LAK DESIGNATION:

Q1)In which bank who like to open a savings account? 1) ICICI 2) HDFC 3)SC 4)KOTAK 5)CITI 6)HSBC Q2) How often do you visit your bank? 1) Daily 2) Weekly 3) Monthly 4) Rarely Q3) Are you satisfied with the facilities provided by your bank? 1) Yes 2) No Q4)Does your bank provide free of cost ATM services while using other bank ATMs? 1) Yes 2) No Q5)Does your bank provide you free home banking? 1) Yes 2) No Q6) Does your bank provide you interest of fixed deposit in your saving account? 1) Yes 2) No Q7) What attracts you most in your existing bank? 1) Traditional approach 2) Location 3) Interest rate 4) Convenience Q8) Does your bank provide DD free of cost? 1) Yes 2) No Q9) Do you use net banking? 1) Yes 2) No

Q10) Does your bank provide you online net card? 1) Yes 2)No

Q11) Does your bank provide you any branch banking? 1) Yes 2) No Q12) Does your bank provide you demat a/c along with saving a/c? 1) Yes 2) No Q13) Does your bank provide you free at par cheque? 1) Yes 2) No Q14) Does your bank provide you free at home services facility? 1) Yes 2) No

PLEASE GIVE FEW REFRENCES 1) 2) 3) 4) 5) 6)

THANK YOU

BIBILOGRAPHY
BOOKS:
Research Methodology- C.R. Kothari Marketing Management- Phillip Kotler

WEBSITES:
www.kotak.com www.icici.com www.hdfc.com www.wikipedia.com