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A PROJECT REPORT
ON
KOTAK MAHINDRA BANK
“WHAT MAKES KOTAK DIFFERENT FROM OTHERS-A COMPARATIVE STORY”
s
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 KUMARROLL NO. -86
UNDER THE GUIDANCE OF
INTERNAL MENTOR EXTERNAL MENTOR
Ms. Neha Gupta Mr. Ritesh Srivastava
C E R T I F I C A T E
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 EXTERNAL MENTOR
(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. Steps in experimental research design 9.2. Explanations given by managers 9.3. Data sources
10. .Findings and Analysis
10.1. Comparative Analysis10.2. 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 pursuer’s 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, India’s 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 Kotak’s 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 India’s leading financial institutions, offering complete financial solutions that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of 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 STORYVARIOUS 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 company- Kotak securities.Investment banking division incorporated into a separate company- Kotak 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 group’s 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 India’s 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 India’s most reputed financial organizations. 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. 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 ANAND MAHINDRA
Additional Director ASIM GHOSH
Wholetime Director C JAYARAM
Director CYRIL SHROFF
Wholetime Director DIPAK GUPTA
Director K M GHERDA
Director PRADEEP N KOTAK
Non-Executive Part Time Chairman SHANKAR ACHARYA
Director SHIVAJI DAM
Wholetime Director 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
India’s 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
India’s 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
‘I 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 Non-Metros
Within city limits 3Hrs Within city limits 2.5 Hrs Outside City limit 4Hrs Outside City limit 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 Mobile banking
Bank account AvailableInvestment account AvailableDEMAT account Available
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 DD’s
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 CONVENIENCEBANKING
INVESTMENT SERVICES
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 BANK’S
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 : Casual Research
DATA SOURCES : Primary data
Secondary data
PRIMARY DATA : Observation method
Questionnaire
Telephonic survey
SAMPLE SIZE : 300
SURVEY AREAS : 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 company’s 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 company’s 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.
TECHNOLOGY
PRODUCT SERVICE
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.
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.
COMPETITORS
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 doesn’t 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 Bank’s 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 don’t 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 that’s 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 Response (%)
Daily 1Weekly 5Monthly 26Rarely 68
0
20
40
60
80
100
120
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 doesn’t require.
2. In which bank you like to open an savings account ?
Option Response ICICI 25%HDFC 21%SC 14%HSBC 12%CITI 9%KOTAK 19%
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.
icici25%
hdfc21%sc
14%
hsbc12%
kotak19%
citi9%
3. Does your bank provides free of cost ATM services while using other bank ATM’s?
Options Response (%)
Yes 45No 35Never Try 20
Response (%)Yes No Never
Try
0
51015
2025
3035
40
45
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 Response (%)
Yes 35No 40Not aware 25
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No Not aware
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.
5. Does your bank provide you interest on fixed deposit in your savings account?
Options Response (%)
Yes 30No 40Not applied 30
30
40
30
0
5
10
15
20
25
30
35
40
45
Yes No Not applied
Response (%)
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.
6. Does your bank provide DD free of cost?
Options Response
Yes 40No 50Not tried 10
40
50
10
0
10
20
30
40
50
60
Yes No Not tried
Response
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 Response (%)
Yes 60No 40
6040
0
20
40
60
80
100
120
Response (%)
Yes No
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 Response
Yes 85No 15
0
10
20
30
40
50
60
70
80
90
Response
Yes
No
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 Response (%)
Yes 90No 10
0
20
40
60
80
100
120
Response (%)
No
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/benefits
ICICI Bank
HDFC Bank
HSBCBank
ABN AMRO
KOTAK
1 AQB Rs.5000 Rs.10000 Rs.10000 Rs.10000 Rs.10000(Edge)Rs.20000(Pro)
2 Debit Card Charges
Rs.99 Rs.250 Rs.150 Ist year free Rs.200 next year
Ist year free Rs.50 next year
3 Other ATM uses
Rs.50 Rs.55 Rs.55 Rs.40 Free with HDFC. Visa free with any bank
4 Branch Banking
Allowed Allowed Allowed Allowed Allowed
5 Cheque Book charges
No Rs.2 per leaf
No No No
6 Cheques bounce charges
Rs.50 party cheques
Rs.50 party cheques
Rs.150 self cheques
Rs.100 self cheques
Rs.300 self cheques
7 Free Accidental Insurance
No No As availability
No No
8 Utility payment
Yes Yes Yes Yes Yes
9 Photo card charges
Rs.100 No No No No
10 DD charges Rs.2 per 1000
Rs.2.50 per 1000
0.35% of the amount
0.25% of the amount
Free upto 5 lac
11 Phone banking
Yes Yes Yes Yes Yes
12 No of branches
573 531 150 16 182
13 Branch timings
8 to 8 10 to 3 9 to 3 10 to 7 9.30 to 4.30
14 Life insurance connection
ICICI Prudential
HDFC Standard Life
TATA AIG
AVIVA Kotak Mahindra Insurance Corporation
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 don’t 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 ofSavings account which most of the customers want.
At the end of the research the conclusion came out is that the features of Kotak Mahindra Bank’s 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: DESIGNATION:
CONTACT DETAILS:
E-MAIL ID:
ANNUAL INCOME: BELOW 3LAK 3-5LAK 5-7LAK ABOVE 7 LAK
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
