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EXECUTIVE SUMMARY
This project was carried out for Kotak Mahindra bank. The objective of the
survey conducted was to know the current account of the customer and what facilities
get through the bank.
My summer project topic is “Alliances of Kotak Mahindra debit card
customer” and cum lead generation for potential current accounts”. And my job
timing is 11:00am to 5:00pm; this topic is assigned to three students.
In the alliances of Kotak Mahindra debit card customer we get the target of
30 potential retail shops and we have to convince the retailers to give 10%discount to
customers on Kotak debit card and in return name of the retail shop and Kotak will be
attached and displayed in all banks and ATMs of Kotak Mahindra bank through
candies, leaflets and pamphlets. The most interesting part of this topic is that this
project will be implemented by the bank.
In the cum lead generation for potential current account I feel marketing is
very hard work but not impossible We are three student in each group and my target
is convince ten leading business man about provide good facility from kotak
Mahindra bank . We are doing the work with enjoy. It’s not very difficult job because
only my job is get information about current account of his/her. It means we get the
information where your current account and what types of extra facility provide your
banks. And after that we convince that person and told him, our bank is giving four
extra facilities from your banks.
There are four extra facility provide kotak Mahindra bank
1.) Interest of current account.
2.) Home banking facility.
3.) Dedicate to relationship management.
4.) Cash credit / over drab facility.
We are not doing force open new current account in kotak. But my target is at
list convince ten leading business man for open current account in kotak.
1
INTRODUCTION
Established in 1985, the Kotak Mahindra group has been one of India's
reputed financial organizations. It was previously known as the Kotak Mahindra
Finance Limited, a non-banking financial organization.
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). This approval created banking history since Kotak Mahindra Finance Ltd. is
the first non-banking finance company in India to convert itself in to a bank as Kotak
Mahindra Bank Ltd. The bank has a base of 8000+ employees.
Within a small span of 6 years, the bank has spread it wings in several sphere
of finances. Presently, spread in 82 cities in India, the bank caters to the needs of its
5.9 million customers spread throughout the length and breadth of country and even
abroad.
Kotak Mahindra Bank has over 217 branches spread across 126 locations in
the country offering both traditional banking products and investment advisory
services. The Bank has the products, the experience, the infrastructure and most
importantly the commitment to deliver pragmatic, end to- end solutions that really
work.
The Bank offers comprehensive business solutions that include Trade
Services, Cash Management Service and Credit facilities, keeping in mind the needs
of the business community.
2
INDUSTRY PROFILE
1985
- The company was incorporated on 21st November, 1985 under the name
Kotak Capital Management Finance Ltd. The Company has been promoted by Mr.
Uday S Kotak, Mr. S.A.A Pinto and Kotak & Company. The Company obtained the
certificate of commencement of business on 11th February, 1986 and the Existing
promoters were joined by Mr. Harish Mahindra and Mr. Anand Mahindra. The
Company's name was changed on 8th April, 1986 to its present name Kotak Mahindra
Finance Ltd.
- The Company deals in Bill discounting, leasing and hire purchase, corporate
finance, management of fixed deposit mobilization, financing against securities,
money market operations, consumer finance, investment banking and clients' money
management.
1990
3, 08,770 No. of equity shares subscribed for by the promoters,
Directors, 3,41,230 No. of equity shares allotted as rights as on 28.3.89.
19,50,000 shares issued as bonus (6,50,000 shares in prop. 1:1 as on 29.7.89 and
13,00,000 shares in prop. 1:1 as on 27.2.91).
1991
An application was made to SEBI for approval for setting up a Mutual Fund
trust and an Asset Management Company. The newly set up Corporate Advisory
Services Group received several mandates for advice on mergers and acquisitions and
re-structuring.
3
The Company's newly established Foreign Exchange Risk Management
Service carters to the vast potential demand for price risk management.
The Company established itself as a major leasing and hire-purchase company
and as a source of finance for purchasers of automobiles.
1994
The Company entered into a Memorandum of Understanding with KB
Currency Advisors Inc. USA to market their Foreign Exchange Fund Management
program.
183,65,500 Rights equity shares issued in prop. 1:1. 11,800 No. of equity
shares forfeited. The Company has received
1995
The Company issued 4,00,000 - 17% Secured Redeemable Non-convertible
Debenture of Rs 2500 each including 96000 - 16% NCDs reserved for NRIs/URB
(only 9510 taken-up). Unsubscribed portion of 90 debentures issued to the public.
These are redeemable at par on 7.3.2001 with an option for early redemption up to a
maximum of 5% of the issue amount every year.
The Company entered into a joint venture agreement with Ford Credit
International Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA. It was proposed
to finance all non Ford Passenger cars.
1997
In recognition of the Company's prudent funds management, CRISIL has
assigned a rating of AA+ to the Company's public issue of Non-Convertible
Debentures and P1+ for all short term borrowings up to Rs.35000 lakhs.
Kotak Mahindra Finance Ltd, has decided to venture into health insurance
business.
4
Kotak Mahindra Finance has launched a new consumer finance Product
called Kotak Mahindra K-Value.
Hamko is a 100 per cent subsidiary of KMFL and investment in it was
structured to avoid limitations of Section 372 under the Companies Act.
The company has diversified into various activities for which it has set up
subsidiaries including broking, capital market activities, auto finance, etc.
1998
Kotak Mahindra Asset Management Company Limited (KMAMCL)
launched its mutual fund schemes in December.
The Company it would launch its mutual fund with two schemes KGilt Unit
Scheme and K30 Unit Scheme.
Kotak Mahindra Finance is a joint venture with Goldman Sachs.
2000
Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation of the US have
decided to call off their joint venture for entering the general insurance business in
India.
The Company has decided to set up a venture capital fund with an initial
corpus of Rs. 100 core.
KMFL has set up a new asset reconstruction division to offer recovery
management services to players in the financial services industry.
The Company Issue of 91,82,500 No. of Equity Shares of Rs. 10/- each for
cash at a premium of Rs. 90/- per share aggregating Rs. 91,82,50,000 to the Equity
5
Shareholders of the Company on Rights basis in the ratio of one equity share for
every our equity shares held on 15th February.
Mr. K.K. Sheth has resigned effective from May 8. Kotak Securities an
affiliate of Kotak Mahindra Finance Ltd., has launched electronic broking services for
retail investors.
Kotak Mahindra Finance is in talks with foreign insurers insurers for a joint
venture in the life insurance business.
The Company has proposed to start-up capital of Rs 150 crore in its life
insurance joint venture with Old Mutual, the UK based financial services group.
The Company proposes to make the necessary applications to the RBI and the
Insurance Regulatory and Development Authority for entering the life insurance
business.
OM Kotak Mahindra Life Insurance Company, the recently formed joint
venture company of Kotak Mahindra Finance and Old Mutual Plc has filed its
application for approval of life insurance license on 1st September.
Kotak Mahindra Finance Ltd has been assigned Ind AAA rating (indicating
highest credit quality) for its Rs.510 million medium term borrowing programmer.
Fitch India has assigned a rating of Ind AAA to the Rs 51-crore medium term
borrowing program of Kotak Mahindra Finance Ltd for high credit quality and
negligible risk factor.
2001
The Company recommended a swap ratio of 25 shares of KMFL for every
share of Pannier Trading which has a 75 per cent equity stake in Kotak Securities.
6
The Bharath Petroleum Corporation Ltd (BPCL) has decided to part ways
with Kotak Mahindra, one of the leading domestic financial services company, in its
convenient store venture In & Out.
2003
Madison Communications has won the Rs.30cr Kotak Mahindra's media
AOR account.
The proposal of changing the name from 'Kotak Mahindra Finance Ltd' to
'Kotak Mahindra Bank Ltd' and the proposal to change the Authorized capital from
100,00,00,000 divided into 10,00,00,000 equity shares of Rs.10 each has been
approved by the company shareholders.
RBI has granted license to Kotak Mahindra Finance Ltd to embark on its
banking business.
O & M has got the creative account of Kotak Mahindra Bank, and has said
to be working professionally.
Kotak Mahindra Bank has received a lot of interest from portfolio
investors, private equity investors and potential.
Kotak Mahindra Bank has entered into an ATM sharing agreement with
UTI Bank, which would allow KMB's customer free access to around 800 ATM's.
Kotak Mahindra Bank has started its operations in New Delhi b
inaugurating a branch Connaught place office. Dr.Shankar Acharya has been
appointed as the Additional Director to the board of the bank.
7
Company profile
Chairman K.M.Gherda
Executive vice chairman& Uday Kotak
Managing director
Chairman of boards of directors Shankar Acharya
Registered office Nariman Bhawan
Mumbai
Established In February 2003.
8
Corporate identity:
The symbol of the infinite Ka reflects our global Indian personality. The Ka is
uniquely Indian while its curve forms the infinity sign which is universal. One of the
basis tenets of economics is that man’s needs are unlimited. The infinite Ka
symbolizes that we have infinite number of way’s to meet those needs.
The composition of the Board of Directors of the Bank is governed by the
Banking Regulation Act, 1949 and Clause 49 of the Listing Agreement. The Board of
Directors comprises a combination of executive and non-executive Directors.
The Board mix provides a combination of professionalism, knowledge and
experience required in the banking industry. The responsibility of the Board inter alia
includes formulation of policies, taking new initiatives, performance review,
monitoring of plans, pursuing of policies and procedures.
Kotak Mahindra Bank amongst Hewitt’s ‘Top 25 Best Employers’
Ranks 1st amongst the BFSI segment, second time in a row-
Kotak Mahindra Bank, one of India’s leading private banks has bagged the
Hewitt Best Employer’s in India award for the second time in a row. The Award was
received by Mr. Subhro Bhaduri Executive Vice President-HR, Kotak Mahindra
Bank.
The Hewitt Best Employer awardees have been selected by an independent
jury comprising of eminent members from the Industry and academic world. The
2009 study also introduced new research initiatives to evaluate how new dimensions
9
such as personal values, CSR, and workplace diversity impact human capital
management for business growth and witnessed participation from over 230
organizations. The views of over 800,000 employees have been represented by over
46,000 employees across India, making this one of the largest employee research
studies conducted in the country.
FUTURE OUTLOOK
Your Bank expects to expand its banking activities over the next one year by
setting up additional branches in major cities around the country. With the expansion
of the branch network, your Bank expects to broad base the product offering with a
view to deepening relationships with customers.
The commercial vehicle market has seen a robust growth over the past few
months and your Bank expects to increase its market share in the financing business.
With the development of the national highway projects, an increase is also expected
in the construction equipment financing business.
Your Bank proposes to expand its geographical reach in the personal loans
business. It has now put in place the requisite infrastructure, systems and processes
for financing housing loans and this business is expected to grow during the current
year.
Your Bank is in the process of setting up a comprehensive cash management
system offering customer services in the collections and payments area. It expects to
play a more active role in financing small and medium enterprises, largely through
capturing supply chain businesses.
The key challenge over the next year would be to establish the required branch
banking infrastructure and leverage on the large existing customer base to develop a
robust retail banking base.
Kotak Mahindra Bank Limited has informed that the Bank's equity shares will be
delisted from The Stock Exchange, Ahmedabad with effect from January 20, 2004.
10
Kotak Mahindra, one of leading financial services companies, The company also
unveiled its new corporate identity on the occasion. The bank will open its door to
retail and corporate clients on March 31. It also plans to invest Rs. 120 crores over
three years for infrastructure, technology and personnel.
The promoters' stake in the bank, which is at 62 per cent at present, will be brought
down to 49 per cent according to the Reserve Bank of India stipulation. The bank will
be the parent holding company with five subsidiaries under it. The total net worth of
the group is Rs. 1,400 crores. At present, the net NPAs is at 0.01 per cent.
Backed by 20 years of expertise in the financial services business, Kotak will offer
complete practical financial solutions from retail finance, stock broking, mutual
funds, life insurance to investment banking.
From the first day of operations, the bank customers will have access to over 800
ATMs free of cost, through a sharing agreement with UTI Bank. Additionally, the
customers will have access to the entire VISA network of 4,500 ATMs in India and
eight lakh ATMs worldwide, at a nominal cost and will get Visa debit cards, accepted
in more than 56,000 establishments across India and over ten million establishments
worldwide.
The bank plans to grow in its existing line of businesses of commercial vehicles,
personal loans, trade finance and capital market. It also plans to enter into housing
finance in 2003-04. The new bank is planning to establish 75 branches in the next
three years and 25 branches by March 2004. The bank is targeting high net worth
clients, mainly in Mumbai and Delhi and subsequently in other cities. It will
aggressively sell savings accounts and current accounts to lower their cost of funds.
11
The bank will integrate all financial solutions under a single roof and also act as an
outlet for the products and services provided by the subsidiary companies. The bank
and its subsidiaries have a network spread around 50 locations in India and its client
base of over five lakh customers.
PRODUCT PROFILE
The product services of the Kotak Mahindra group comprise the following areas.
Bank
Kotak Realty Fund
Credit Cards
Kotak Private Equity
Life Insurance
International Business
Mutual Fund
Investment Banking
Car Finance
Institutional Equities
Securities
Product services of the Kotak Mahindra Bank Limited encompass a wide arena. They
can be broadly put under the heads of Banking and Savings, Corporate and
Institutional, Investments and Insurance and Loans and Borrowings.
These main service provision areas again have a number of sub-areas under them.
Banking and Savings
Banking and Accounts
Convenience Banking
Credit Cards
NRI Services
12
Demat
Deposits
Corporate and Institutional
Corporate Finance
Treasury
Investment Banking
Institutional Equities
Investments and Insurance
Life Insurance
Estate Planning
Mutual Funds
Gold
Share Trading
Structured Products
Loans and Borrowings
Car Finance
Commercial Loans
Home Loans
Personal Loans
Loans Against Property
Kotak Mahindra Bank Limited also sponsors Kotak Mahindra Mutual fund. Kotak
Star Kid is the new offer from Kotak Mahindra Mutual fund. It is a unique product
which is essentially a mutual fund along with insurance coverage available in a single
package.
1. Gold Debit Card
13
Gold Debit Card, a 'fully loaded' Visa Debit Card with unlimited free access to all the
VISA ATMs in India and worldwide. The card also has higher purchase and cash
withdrawal limits –Rs.1, 75,000 per day purchase limits and Rs.1, 75,000 cash
withdrawal limit.
In addition to the above, the Kotak Gold Debit card also allows for the complete
waiver of the fuel surcharge across all petrol pumps anywhere in India, irrespective of
the amount of the transaction. Our discerning customer also enjoys Gold lifestyle
benefits (offers on fine dining,
travel, etc.)
2. ACE ACCOUNT
Ace Deposit is a unique product from Kotak Mahindra Bank Limited. It combines the
prospective of lucrative returns from an equity fund along with the stability and safety
of a Fixed Deposit. Here the monthly interest accruing to one's term deposit is
channelized for investment in mutual funds as per a systematic investment plan. The
safety of the principal amount on the fixed deposit is guaranteed. The interest income
becomes linked to the prospect of market-linked returns.
3. CAR LOANS
Kotak Mahindra Bank Limited Car Loans come from Kotak Mahindra Prime Limited
a subsidiary unit of Kotak Mahindra Bank Ltd. The company provides finance
options for and multi-utility vehicles including cars. Kotak Mahindra Prime Limited
provides car dealers with inventory funding. It is also the preferred financier of a
number of car manufactures in the country.
4. HOME LOANS
Kotak Mahindra Bank Limited Home Loans comes with a host of attractive features.
Some of the salient features are described below.
Wide array of offerings
14
Absence of hidden charges
Pre-approved sanctions
Life insurance options
Personal accident insurance, which is free
Vanilla Home Loan, Fixed Deposit linked Home Loans and Kotak Flexi Home Loan
are some home loan offerings from Kotak Mahindra Bank Limited.
5. PERSONAL LOANS
Loans Against Property is a unique product from Kotak Mahindra. This loan can be
used for issues like debt consolidation, educational finance, emergencies and the like.
Some key features of this loan are given below.
Heightened loan eligibility for businesspersons
Loans are available against both commercial and residential properties
Personal accident insurance comes free with the loan
Loan range is from Rs.10 lakh to Rs.3 crore
6. SAVINGS ACCOUNT
It provides quick & convenient banking transactions along with options for your
money to earn high returns. The savings account goes beyond the traditional role of
savings, to provide you a range of services from funds transfer options to online
payments of bills to attractive returns earned through a comprehensive suite of
investment options.
15
Features & Benefits:
1. Free access at all domestic and international VISA ATMs You no longer have
to worry about locating your Bank or Partner Bank ATM - Use the first VISA
ATM that you spot, for free cash withdrawal or balance enquiry transactions.
So walk into any VISA ATM in India or abroad to withdraw cash or for
balance enquiry.
2. Multiple access channels Access your account anytime through your land line,
mobile phone or internet to get information on your account balance or track
your transactions. You can even transfer funds through Phone Banking or Net
Banking.
3. Financial payments facilitated through the savings account Use the free Kotak
Payment Gateway to make online payments for your utility bills, credit cards,
online trading of shares or even online shopping. All this at the click of a
mouse!
4. Quick and easy funds transfer funds easily and with speed, to a beneficiary
account at another bank. You can avail of this facility by walking into any of
our branches or by simple logging on to Net Banking. You also get a free
multi-city cheque book so that money from your account is transferred to the
beneficiary's account at any of our branch locations, in the fastest possible
time.
5. Free banking transactions you can issue demand drafts or send cheques for
collection anywhere in the country for no extra charge.
6. ActivMoney Earn better returns in your savings account, with our
ActivMoney facility that automatically sweeps out idle funds, above a
threshold, from your account into Term Deposits. These Term Deposits sweep
back into your account to meet fund requirements when your withdrawals
exceed the balance available in your account, thereby providing you
maximum liquidity.
16
7. Free investment account Use the Net Banking facility to purchase/redeem
mutual funds online while directly debiting / crediting your bank account.
Further, you get a free investment account for tracking your investments with
the Bank. This account provides you a consolidated view of all your mutual
fund investments across schemes with updated returns status, latest NAV
information and research reports.
8. Dedicated relationship manager you get a one point contact for all your
banking related queries and transactions. Your relationship manager is
qualified to help you with financial planning and sound investment decisions
in order to meet your financial goals.
9. Family Savings Account the Kotak Ace Savings package allows you to extend
the Kotak banking experience to three of your family members. Under this
scheme you are eligible to open 3 Edge Savings Account with NMC waiver
on all 3 accounts, so long as the AQB of your ACE account is maintained.
10. Online trading account Link your savings account to your online trading with
Kotak Securities to enable transfer of funds from your bank account to your
account with Kotak Securities and vice versa.
11. Kotak Mahindra Bank’s Pro Savings Account is an account packed with
powerful features to provide you a superior banking experience at a very
comfortable balance requirement. We provide you a relationship manager who
will specifically take care of your banking and investment needs.
17
CONCEPT OF PROJECT
My summer project topic is “Alliances of Kotak Mahindra debit card customer”. This
topic is assigned to three students. In this project we get the target of 30 potential
retail shops and we have to convince the retailers to give 10%discount to customers
on Kotak debit card and in return name of the retail shop and Kotak will be attached
and displayed in all banks and ATMs of Kotak Mahindra bank through candies,
leaflets and pamphlets. The most interesting part of this topic is that this project will
be implemented by the bank.
THE RETAIL SHOPS IN WHICH I MADE THE TIE-UPS WITH KOTAK ARE AS FOLLOWS:
WEEK 1: KHAITAN MARKET {IWENT TO THIS MARKET WHERE POTENTIAL RETAILERS ARE THERE .THIS MARKET IS MAINLY KNOWN FOR SAREES & SUITS}
*NAME OF THE SHOP: JEEVAN’S (SIYARAM’SFASHION AVENUE)OWNER’S NAME: MANOJ AGARWAL (10% DISCOUNT)
*NAME OF THE SHOP: SAVERA (A BOMBAY DYING SHOW ROOM)OWNER’S NAME: SANJAY AGARWAL (10%DISCOUNT)
*NAME OF THE SHOP: SAAS-BAHUOWNER’S NAME: AJAY KUMAR MORE (10%DISCOUNT)
*NAME OF THE SHOP: GRIH SHOBHAOWNER”S NAME: PANKAJ KUMAR (10%DISCOUNT)
18
WEEK 2: DAKBUNGLOW ROAD {THIS PLACE IS THE HEART OF THE PATNA WHERE BIG & BRANDED SHOPS ARE THERE.HERE MAINLY CROWD OF THE HIGH CLASS PEOPLE}
*NAME OF THE SHOP: SWADESHIOWNER’S NAME: SANJIV RASTOGI (10%DISCOUNT)
*NAME OF THE SHOP: BHARAT MILAPOWNER’S NAME: MD.SALAUDDIN (10%DISCOUNT)
*NAME OF THE SHOP: KARISHMA LIFE STYLEOWNER’S NAME: AJAY MANSAROVAR (10%DISCOUNT)
WEEK 3: DAKBUNGLOW ROAD
*NAME OF THE SHOP: NAYANIOWNER’S NAME: AJAY KUMAR GUPTA (10%DISCOUNT ONLY ON SUIT PEASES)
*NAME OF THE SHOP: HI FASHIONOWNER’S NAME: BRAJESH KUMAR SINHA (10%DISCOUNT)
*NAME OF THE SHOP: MOTA BHAIOWNER’S NAME: SANWAR AGARWAL (10%DISCOUNT)
NAME OF THE SHOP: RAJ RATAN JEWELLERSOWNER’S NAME: VISHAL KESHARI (5%DISCOUNT)
WEEK 4: DAKBUNGLOW ROAD AND BORING ROAD
NAME OF THE SHOP: DOMASHAH MOHANLAL JEWELLERSOWNER’S NAME: SHASHANK KEHARI (10%DISCOUNT ONLY ON MAKING CHARGE)
NAME OF THE SHOP: EASY WEAROWNER’S NAME: RAJESH KUMAR RASTOGI (10%DISCOUNT ONLY ON READYMADE GARMENTS)
NAME OF THE SHOP: INTERNATIONAL LEATHER WORKOWNER’S NAME: FAISAL
WEEK 5: BORING ROAD {THIS IS ALSO A WELL KNOWN AREA OF THE PATNA. HERE I FOUND VARIOUS TYPES OF RETAILERS ARE THERE AND ALSO KNOWN TO EVERYONE IN PATNA}
*NAME OF THE SHOP: QWEEN’SOWNER’S NAME: ALOK BHOJGARHIA (10%DISCOUNT)
NAME OF THE SHOP: RADHA
19
OWNER’S NAME: KANODIA (7%DISCOUNT ON BRANDED AND 10%DISCOUNT ON NON BRANDED)
NAME OF THE SHOP: MADHURIOWNER’S NAME: VIJAY AGARWAL (10%DISCOUNT)
NAME OF THE SHOP: BABA AND BABYOWNER’S NAME: NILESH (10%DISCOUNT)
TIE-UP With Indian airlines
Kotak Mahindra Bank is proud to announce the launch of its Payment Gateway tie up
with Indian Airlines. Indian Airlines, one of the largest airlines in the country, covers
more than 75 destinations within and outside India. With its fully owned subsidiary
Alliance Air, Indian Airlines has a fleet of more than 70 aircrafts. Indian Airlines has
enabled e-Ticketing on its website www.indian-airlines.in in addition to issuance of
tickets across the counter.
Our tie up with Indian Airlines enables the customers of Kotak Mahindra Bank to pay
for tickets booked on Indian Airlines website using Kotak Mahindra Bank Net
Banking user ID and password. Kotak Mahindra Bank is the first private sector bank
to launch this service on Indian Airlines website. The service is available free of cost
to all customers registered for Kotak Bank Payment Gateway service.
Payment Gateway access not only enables purchase on Indian Airlines website but
also enables a customer to transfer money to Kotak Securities account, make
purchases on more than 3000 merchants websites, pay VISA credit card bills online,
transfer money online to any VISA debit card within the country, pay utility bills,
make donations and pay for subscriptions online across more than 60 billions.
The company will ally or forge informal ties with companies in the US, Europe,
Australia and South Africa. The first partner may be from Japan declining to name the
company or provide a timeframe.
20
“We have to do a lot more cross-border, so we are tying up with various partners. We
have to have a footprint like, say, Goldman or UBS AG. To be able to match that we
have to have alliances. The Mumbai-based group ended its alliance with Goldman in
2006.
Kotak Mahindra, which is the fourth-ranked adviser on mergers in India last year, has
slipped to 18th position in 2008, behind firms including the New York-based Morgan
Stanley and the Tokyo-based Nomura Holdings. Kotak Mahindra advised Hutchison
Essar last year on its sale to Vodafone Group, the biggest transaction in India.
NTT DoCoMo, Japan’s biggest mobile-phone operator, agreed to pay $2.7 billion for
a 26 per cent stake in Tata Teleservices to expand into the world’s fastest-growing
major wireless market.
Earlier this month, Daiichi Sankyo, Japan’s third-biggest drugmaker, completed its
purchase of a controlling-stake in Ranbaxy Laboratories to tap the faster-growing
market for generic medicines.Nayar expects more Japanese companies to buy assets
in India.
“They need India to grow, they did that in South Korea. “They have the money and
their currency is strong.’’
The value of mergers and acquisitions in India has fallen to $48 billion this year from
a record $67 billion in 2007, according to Bloomberg data.
ALLIANCES FOR KOTAK MAHINDARA BANK
Kotak Mahindra Bank is planning to sign up new overseas alliances with financial
firms as the global credit crisis forces local businesses to sell stakes overseas. “Indian
promoters will sell out,” managing director, Kotak Mahindra Capital Company. They
will realize “it is a struggle to continue running the company in a down-environment
and there will be greater motivation to sell.’’
21
OBJECTIVES OF PROJECTS
To gather information about performance of bank (or banking services in
Patna)
To identify the satisfaction level of customer towards banking services.
To perceive the customers potential level of expectation towards banking
services both present and future.
IN THE ALLIANCES OF KOTAK MAHINDRA DEBIT CARD
CUSTOMER:
In this project I get the target of 30 potential retail shops and I have to
convince the retailers to give the 10% discount to customers on kotak debit
card in return name of retail shops kotak will attached and displayed in bank
of kotak Mahindra bank through pamphlets, leaflets and candies.
22
TRAINING DEFINED
It is a learning process that involves the acquisition of knowledge, sharpening
of skills, concepts, rules, or changing of attitudes and behaviors to enhance the
performance of employees.
Training is activity leading to skilled behavior.
It’s not what you want in life, but it’s knowing how to reach it.
It’s not where you want to go, but it’s knowing how to get there.
It’s not how high you want to rise, but it’s knowing how to take off.
It may not be quite the outcome you were aiming for, but it will be an
outcome.
It’s not what you dream of doing, but it’s having the knowledge to do it.
It's not a set of goals, but it’s more like a vision.
It’s not the goal you set, but it’s what you need to achieve it.
Training is about knowing where you stand (no matter how good or bad the
current situation looks) at present, and where you will be after some point of
time.Training is about the acquisition of knowledge, skills, and abilities (KSA)
through professional development.
ROLE OF TRAINING:
23
Business Environment
Changes and Challenges
Importance of Training:
• Optimum Utilization of Human Resources – Training and Development
helps in optimizing the utilization of human resource that further helps the employee
to achieve the organizational goals as well as their individual goals.
• Development of Human Resources – Training and Development helps to
provide an opportunity and broad structure for the development of human resources’
technical and behavioral skills in an organization. It also helps the employees in
attaining personal growth.
• Development of skills of employees – Training and Development helps in
increasing the job knowledge and skills of employees at each level. It helps to expand
the horizons of human intellect and an overall personality of the employees.
• Productivity – Training and Development helps in increasing the
productivity of the employees that helps the organization further to achieve its long-
term goal.
• Team spirit – Training and Development helps in inculcating the sense of
team work, team spirit, and inter-team collaborations. It helps in inculcating the zeal
to learn within the employees.
• Organization Culture – Training and Development helps to develop and
improve the organizational health culture and effectiveness. It helps in creating the
learning culture within the organization.
24
Business Excellence
Learning and Implementation
• Organization Climate – Training and Development helps building the
positive perception and feeling about the organization. The employees get these
feelings from leaders, subordinates, and peers.
• Quality – Training and Development helps in improving upon the quality of
work and work-life.
• Healthy work-environment – Training and Development helps in creating
the healthy working environment. It helps to build good employee, relationship so
that individual goals aligns with organizational goal.
• Health and Safety – Training and Development helps in improving the health
and safety of the organization thus preventing obsolescence.
• Morale – Training and Development helps in improving the morale of the
work force.
• Image – Training and Development helps in creating a better corporate
image.
• Profitability – Training and Development leads to improved profitability and
more positive attitudes towards profit orientation.
• Training and Development aids in organizational development i.e.
Organization gets more effective decision making and problem solving. It helps in
understanding and carrying out organizational policies
• Training and Development helps in developing leadership skills, motivation,
loyalty, better attitudes, and other aspects that successful workers and managers
usually display.
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Importance of Training Objectives:
Training objective is one of the most important parts of training program.
While some people think of training objective as a waste of valuable time. The
counterargument here is that resources are always limited and the training objectives
actually lead the design of training. It provides the clear guidelines and develops the
training program in less time because objectives focus specifically on needs. It helps
in adhering to a plan. Training objectives tell the trainee that what is expected out of
him at the end of the training program. Training objectives are of great significance
from a number of stakeholder perspectives,
1. Trainer 2. Trainee 3. Designer 4. Evaluator
Trainer – The training objective is also beneficial to trainer because it helps the trainer to measure the progress of trainees and make the required adjustments. Also, trainer comes in a position to establish a relationship between objectives and particular segments of training.
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Trainee – The training objective is beneficial to the trainee because it helps
in reducing the anxiety of the trainee up to some extent. Not knowing anything or
going to a place which is unknown creates anxiety that can negatively affect learning.
Therefore, it is important to keep the participants aware of the happenings, rather than
keeping it surprise.
Secondly, it helps in increase in concentration, which is the crucial factor to
make the training successful. The objectives create an image of the training program
in trainee’s mind that actually helps in gaining attention. Thirdly, if the goal is set to
be challenging and motivating, then the likelihood of achieving those goals is much
higher than the situation in which no goal is set. Therefore, training objectives helps
in increasing the probability that the participants will be successful in training.
Designer – The training objective is beneficial to the training designer
because if the designer is aware what is to be achieved in the end then he’ll buy the
training package according to that only. The training designer would then look for the
training methods, training equipments, and training content accordingly to achieve
Beneficiaries of Training Objectives
Trainer
Designer
Trainee
Evaluator
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those objectives. Furthermore, planning always helps in dealing effectively in an
unexpected situation. Consider an example; the objective of one training program is
to deal effectively with customers to increase the sales. Since the objective is known,
the designer will design a training program that will include ways to improve the
interpersonal skills, such as verbal and non verbal language, dealing in unexpected
situation i.e. when there is a defect in a product or when a customer is angry.
Therefore, without any guidance, the training may not be designed
appropriately.
Evaluator – It becomes easy for the training evaluator to measure the
progress of the trainees because the objectives define the expected performance of
trainees. Training objective is an important to tool to judge the performance of
participants.
Types of Training:
Basically there are two types of training
1. On the Job Training (OJT)2. Off the Job Training
ON THE JOB TRAINING:
Managers have two powerful ways of improving the performance and productivity of
their subordinates, which are counseling and on the job training.
Counseling is the process of helping a subordinate define and resolve personal
problems that effect performance or in order to develop a good attitude to work.
On the job training is the process of explaining, demonstrating and the structured
supervision of specific skills or particular tasks. It is similar to the teaching process.
On the job training is often referred to as OJT.
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These are highly effective in three situations, which are:
1. Resolving people problems
All managers are faced with problem people from time to time. Counseling
and training are always the first considerations in these cases but they do not
always result in success and sometimes more radical action is required. This is
covered in the Problem People and Positive Discipline modules.
2. Maintaining group standards
The management of people both as individuals and groups is a dynamic
process as nothing remains static ? problems are always arising. A good
manager must be aware of this and be constantly ready to use counseling and
training to maintain standards.
3. To achieve continuous improvement
The best way to avoid problems is to keep ahead of them by being proactive.
You must have a plan for each individual in your group and for the group as a
whole. In particular new and inexperienced group members need special
treatment so that they can meet required levels of performance.
Counseling and training share many of the same skills and in many cases they
are used together to achieve your results.
The following are typical signs of change to look for then you must decide to
initiate the counseling or training (or both) initiatives.
TYPICAL SIGNS OF NEED FOR HELP
Avoids difficult work
No co-operation
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Lack of interest
No initiative
Complaining
Making mistakes
Avoiding contact
No communication
Depressed
Poor quality
Argumentative
Unsafe working
Poor productivity
Delegating to others
Laziness
Absenteeism
Irritability
Blaming others
The most important sign to look for is a change in behavior or performance. For
example, if an employee who has always been well behaved, with a pleasant
disposition suddenly becomes aggressive you can bet on him having some problem
that needs counseling.
Counseling
On-the-job counseling is a process of talking about things that affect the performance
of the work. It involves sitting down in some quiet place and getting job problems out
in the open without hurting each other.
It's all about talking, listening, and trying to understand the other person's point of
view. All supervisors are counselors whether they realize it or not. Sometimes a long
heart-to-heart talk is needed to clear the air or a quick exchange will clear up a
misunderstanding. Perhaps the supervisor does most of the talking; the next time it
may be the other way around. However, counseling is more than a casual discussion
resulting from an accidental encounter.
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Counseling is a very effective management tool to increase productivity by solving
problems and strengthening or repairing working relationships. Other kinds of
problems of a personal or psychological nature should be avoided and left to
professionals in that field.
On the Job training
Training is almost a natural human instinct. We all train our children without even
thinking about it but when we have the job of training someone at work we find
problems.
On the job training is often a one to one situation, usually involving the supervisor
and one of the group. The supervisor uses the actual work as the training location, and
works with the trainee to improve skills or introduce new tasks. This process is also
referred to as coaching.
Advantages of on the job training
1. It is cost effective
2. It strengthens relationship within the group
3. Feedback and support is easy
nearly all the problems associated with on the job training are very simple to
overcome. Like so many other parts of our work they require us to take a more
systematic approach to the situation.
Most workers usually take pride in learning a new skill. The new skills gained are to
our mutual benefit as it's good for the worker to improve his future employment value
and for us to have new capability in our groups. In addition, by making learning
possible, you earn their respect and build enduring relationships.
The supervisor is frequently the only person in the organization that teaches the basic
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knowledge and the many key skills that the group needs to learn. On-the-job training
should never stop.
OFF THE JOB TRAINING:
Advantages :
If the course has been designed by staff member it can be delivered to fit in with the
employee's regime and workload, so it does not affect productivity.
Can work out extremely cost effective as no hotel fees, trainer fees or extra equipment
are incurred, all is provided in-house and in works time.
Depending on the course, employees are ample to meet other employees perhaps from
other branches or departments they would not have normally met.
As employees are familiar with the trainer and the environment they are being taught
in, this would help them to feel more relaxed.
The person developing the course would be able to gauge the level of ability and
content for the course to be taught.
The course would be more relevant and adaptable to the needs of the company
Disadvantages:
Extra Audio or Visual aids to aid learning (whiteboard, Overhead projector, projector,
video etc) might not be available and so this would mean courses might be basic or
substandard.
As a member of staff may be delivering the course rather than an experienced trainer,
the employees might not take the course seriously and this might hamper learning.
Employee rivalry and banter may mean that employees bypass the course and
undervalue its content as they think they know better or have better ways of doing it.
Depending on the teaching skills of the employee training the members of staff, they
might not be able to gauge the existing abilities, knowledge, skill or need for training,
and so employees attending the course might already know what is being taught
already.
If the need for training has not accurately been gauged this would result in the work
32
space being wasted where it could have been utilized more productively.
If resources are limited, equipment available may be different than that used by the
employees and this would be counter productive.
Employees may feel devalued if they are sent on an internal training course to
improve skills rather than learn new ones and so courses have to be selected and
promoted to the employees very carefully and sensitively.
Needs of Training and to measure its effectiveness:
The identification of training needs is the first step in a uniform method of
instructional design.
1. Types of Needs Analyses
Many needs assessments are available for use in different employment
contexts. Sources that can help you determine which needs analysis is appropriate
for your situation are described below.
1. Context Analysis. An analysis of the business needs or other
reasons the training is desired. The important questions being answered by
this analysis are who decided that training should be conducted, why a
training program is seen as the recommended solution to a business
problem, what the history of the organization has been with regard to
employee training and other management interventions.
2. User Analysis. Analysis dealing with potential participants
and instructors involved in the process. The important questions being
answered by this analysis are who will receive the training and their level
of existing knowledge on the subject, what is their learning style, and who
will conduct the training.
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3. Work analysis. Analysis of the tasks being performed. This
is an analysis of the job and the requirements for performing the work.
Also known as a task analysis or job analysis, this analysis seeks to
specify the main duties and skill level required. This helps ensure that the
training which is developed will include relevant links to the content of the
job.
4. Content Analysis. Analysis of documents, laws, procedures
used on the job. This analysis answers questions about what knowledge or
information is used on this job. This information comes from manuals,
documents, or regulations. It is important that the content of the training
does not conflict or contradict job requirements. An experienced worker
can assist (as a subject matter expert) in determining the appropriate
content.
5. Training Suitability Analysis. Analysis of whether training
is the desired solution. Training is one of several solutions to employment
problems. However, it may not always be the best solution. It is important
to determine if training will be effective in its usage.
6. Cost-Benefit Analysis. Analysis of the return on investment
(ROI) of training. Effective training results in a return of value to the
organization that is greater than the initial investment to produce or
administer the training.
2. Techniques
Several basic Needs Assessment techniques include:
Direct Observation
Questionnaires
Consultation with persons in key positions, and/or with specific
knowledge
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Review of Relevant Literature
Interviews
Focus Groups
Tests
Records & Report studies
Work Samples
3. Checklist for Training Needs Analysis
It is helpful to have an organized method for choosing the right test for
your needs. A checklist can help you in this process. Your checklist should
summarize the kinds of information discussed above. For example, is the test
valid for your intended purpose? Is it reliable and fair? Is it cost-effective? Is the
instrument likely to be viewed as fair and valid by the test takers? Also consider
the ease or difficulty of administration, scoring, and interpretation given available
resources. A sample checklist that you may find useful appears on the following
page. Completing a checklist for each test you are considering will assist you in
comparing them more easily.
Training Evaluation:
The process of examining a training program is called training evaluation.
Training evaluation checks whether training has had the desired effect. Training
evaluation ensures that whether candidates are able to implement their learning in
their respective workplaces, or to the regular work routines.
Purposes of Training Evaluation:
The five main purposes of training evaluation are:
Feedback: It helps in giving feedback to the candidates by defining the
objectives and linking it to learning outcomes.
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Research: It helps in ascertaining the relationship between acquired
knowledge, transfer of knowledge at the work place, and training.
Control: It helps in controlling the training program because if the training is
not effective, then it can be dealt with accordingly.
Power games: At times, the top management (higher authoritative employee)
uses the evaluative data to manipulate it for their own benefits.
Intervention: It helps in determining that whether the actual outcomes are
aligned with the expected outcomes.
Process of Training Evaluation
Before Training: The learner’s skills and knowledge are assessed before the training
program. During the start of training, candidates generally perceive it as a waste of
resources because at most of the times candidates are unaware of the objectives and
learning outcomes of the program. Once aware, they are asked to give their opinions
on the methods used and whether those methods confirm to the candidates
preferences and learning style.
During Training: It is the phase at which instruction is started. This phase usually
consist of short tests at regular intervals
After Training: It is the phase when learner’s skills and knowledge are assessed
again to measure the effectiveness of the training. This phase is designed to determine
whether training has had the desired effect at individual department and
organizational levels.
training has had the desired effect at individual department and organizational levels.
There are various evaluation techniques for this phase.
Techniques of Evaluation
The various methods of training evaluation are:
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• Observation.
• Questionnaire.
• Interview.
• Self diaries.
• Self recording of specific incidents.
Methods of Training:
There are various methods of training, which can be divided in to cognitive
and behavioral methods. Trainers need to understand the pros and cons of each
method, also its impact on trainees keeping their background and skills in mind
before giving training.
Cognitive methods are more of giving theoretical training to the trainees. The
various methods under Cognitive approach provide the rules for how to do something,
written or verbal information, demonstrate relationships among concepts, etc. These
methods are associated with changes in knowledge and attitude by stimulating
learning.
The various methods that come under Cognitive approach are:
LECTURES
DEMONSTRATIONS
DISCUSSIONS
COMPUTER BASED TRAINING (CBT)
INTELLEGENT TUTORIAL SYSTEM(ITS)
PROGRAMMED INSTRUCTION (PI)
VIRTUAL REALITY
Behavioral methods are more of giving practical training to the trainees. The
various methods under Behavioral approach allow the trainee to behavior in a real
fashion. These methods are best used for skill development.
The various methods that come under Behavioral approach are:
GAMES AND SIMULATIONS
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BEHAVIOR-MODELING
BUSINESS GAMES
CASE STUDIES
EQUIPMENT STIMULATORS
IN-BASKET TECHNIQUE
ROLE PLAYS
Both the methods can be used effectively to change attitudes, but through
different means.
Another Method is MANAGEMENT DEVELOPMENT METHOD –
MANAGEMENT DEVELOPMENT –
The more future oriented method and more concerned with education of the
employees. To become a better performer by education implies that management
development activities attempt to instill sound reasoning processes.
Management development method is further divided into two parts:
ON THE JOB TRAINING –
The development of a manager’s abilities can take place on the job. The four
techniques for on-the job development are:
COACHING
MENTORING
JOB ROTATION
JOB INSTRUCTION TECHNIQUE (JIT)
OFF THE JOB TRAINING –
There are many management development techniques that an employee can
take in off the job. The few popular methods are:
SENSITIVITY TRAINING
TRANSACTIONAL ANALYSIS
STRAIGHT LECTURES/ LECTURES
SIMULATION EXERCISES
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Suggestions to Improve Training:
Before the Training Programme:
• Explain to the employee why they were selected for the training programme and
discuss the anticipated benefits for your department or division. This 'preview' helps
the employee focus on what is expected of them after the training programme
finishes.
• Ask the employee to describe the benefits they expect to receive from the
programme. Having the employee focus on their personal expectations prior to the
start of training can increase the learning potential of any programme.
• Explain to the staff what is expected from them in terms of punctuality,
attendance and participation in the training programme.
• If more than one employee is being sent to a training programme, introduce
them to each other so they feel comfortable with their fellow participants.
• Ensure the employee understand how the training programme will benefit both
their current job performance while improving their advancement potential.
During the Training Programme:
• For extended training programmes, have the participants brief their managers as
the course progresses. This can be done via telephone or fax when face-to-face
meetings are impossible. These briefings 'force' the participant to evaluate the
material on a daily basis, thereby enhancing their learning outcome.
• Managers should discuss any problems or uncertainties that arise in order to help
participants identify examples of how the material can be applied on the job.
• If the participants are required to complete an interim assignment the manager
should get personnel that are not attending the course involved. This will maximize
the amount of individuals who benefit from the course.
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After the Training Programme:
• Meet with course participants to review (1) what they learned, (2) how will they
use the new knowledge in their day-to-day work, (3) suggestions they have for
improving the course, and (4) who else should attend the course.
• Ask the employees for suggested company improvements based on the material
they learned during the training programme. Managers must be willing to implement
these suggestions on a trial basis and ensure the employee is involved with the
implementation and evaluation process.
Remembering these simple tricks will improve your organization's training ROI while
making sure the performance of your workforce will continue to improve. Finally, I
want to emphasize again, these tricks are not designed only for the HR staff --
improving the training process is everyone's business!
RESEARCH METHODOLOGY
Research methodology is the method or the entire procedure involved in carrying out
a research for a specific purpose. Research is a way to systematically solve the
research problem.
In it we study the various steps that are generally adopted by a research to know not
only the research methods or techniques and they need to know the criteria by which
they can decide technique and procedure will be applicable to certain problems and
other will not. Research is thus an original contribution to the existing stock of
knowledge making for its advancement. Te purpose of research is to discover answer
to questions application of scientific procedures.
Research always starts with a question or a problem.
40
Its purpose is to find answers to questions through the application
of the scientific method.
It is a systematic and intensive study towards study a more
complete knowledge of the studied.
As marketing does not address itself to basic or fundamental questions, it does not
qualify. On the contrary, it tackles problems, which seem to have immediate
commercial potential. In the view of the major consideration, marketing research
should be regarded as applied research. We may also say that marketing research is of
both types problem solving oriented.
TYPES OF RESEARCH
The approach followed in his type of research, the researcher has to contact the
person directly to know about the available information and analyze these to make a
critical evaluation. The facts and information required to analyze the data was
available in the interviewer’s statements.
It is called descriptive as it in the present. The researcher has no control over the
variable. He can report what has happened or what is happening.
DATA COLLECTION
PRIMARY DATA:
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Primary data are data freshly gathered for specific purpose or for a specific research
project.
When the needed do not exist or are dated, inaccurate, incomplete, unreliable, the
researcher will have to collect primary data. The normal procedure is to interview
some people individually or in groups, to get a sense of how people feel about the
topic in question and develop a formal research instrument into field. It is also called
as the first hand data.
SECONDARY DATA:
It refers to data that is collected from some other sources, probably for similar
purpose already exists somewhere.
The research assignment under was aimed at gathering some vital information
Alliance for Debit Card Customer used by kotak Mahindra bank in attracting the
customer and the reasons for enormous success.
Among all the available ways, survey was the most feasible option to carry in the
cores of carrying out the research as it was more economical and keeping the limited
time in hand it thus proved to be the best option.
Survey was the best option as:
It provides larger and fast coverage
Low cost is involved
Direct interface with people
The analysis can be done on the basis of structured questionnaire
Data is easier to compile and categorize
RESEARCH INSTRUMENTS
42
A structured questionnaire was used as tool for data collection. To capture the
consumer, preferences, questionnaire having two type of question were used areas
follows:
Close ended question
Open ended question
The questionnaire covers aspects like:
Kotak Mahindra bank popularity among the customer
The impact of scheme like tie up with the shop keeper or big organization
The prospective and potential customer of the kotak Mahindra bank
Exiting banker’s and main banker’s and the facilities of the current banker
Earn interest on your current account
Exiting banker’s offer dedicated relationship manager to service the a/c
SAMPLE TECHNIQUE
It is all about a study of relationships existing between debit card customer and kotak
Mahindra bank. After taking the consideration of Patna city population it was decided
to use non probability sampling method to use.
SAMPLE SIZE
The larger the sample the more accurate the results would be but practically it is not
feasible to survey the entire target population customers or even substantial portion of
it. In this project the sample size is 100. In this project being aware of the time and
cost constraints sample size was limited.
SAMPLE ELEMENT
(To whom this survey concern) To know the promotional strategy and its impact on
customers
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Sample frame
The research consists of list of items from which sample is to be drawn. In this case
sample is to premises of kotak Mahindra bank in exhibition road in Patna region.
Sample design
It is definite plan for obtaining a sample frame. It refers to technique or procedure the
researcher would adopt in selecting some sampling units from which references about
the population are drawn. It is a definite plan determined before data are actually
collected for obtaining a sample from a given customer population.
Sample method
End consumers: Random sampling
In this research
The information is based on primary data.
The quantitative measures have been used.
The tools used were observation personal interview and questionnaire.
Data collection and analysis
All the analysis and findings of the project is based on the data which has been
collected from the survey of the market. The analysis of data requires a number of
closely related operations into raw data through tabulation chart and then draws
inferences. Analysis of work is generally based on computation of various
percentages.
Preparation of report
After analysis is the next step is in the preparation of report has been prepared
according to the report writing principals.
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The objective, clarity in presentation of ideas and the use of charts have been
maintained throughout the report. Once the data has been collected the researcher has
to process analysis and interpret the same. Sufficient attention is often not given to
these aspects with the result that the quality of report suffers.
Tabulation
It comprise of sorting of data into different categories and counting the number of
cases that belongs to each categories.
Analysis and interpretation
These are central steps in the research process. The goal of this analysis is to
summarize the collected data in such a way that they provide answers to the question
that triggered the research.
Hence the questionnaire prepared was then done to bring the meaning an implication
study.
All result is interpreted from raw data which was collected through survey, while
results have been filtered from the interview of the bank and customers through
questionnaires.
For convince and easy interpretation all the data has been presented in graphical
method.
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BANKING STRUCTURE IN INDIA
Scheduled Banks in India
(A) Scheduled Commercial Banks
Public sector Banks
Private sector Banks
Foreign Banks in India
Regional Rural Bank
(28) (27) (29) (102) Nationalized
Bank Old Private
Banks
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Other Public Sector Banks
(IDBI) SBI and its
Associates
New Private Banks
(B) Scheduled Cooperative Banks
Scheduled Urban Cooperative Banks (55)
Scheduled State Cooperative Banks (31)
Here we more concerned about private sector banks and competition among them. Today, there are 27 private sector banks in the banking sector: 19 old private sector banks and 8 new private sector banks. These new banks have brought in state-of-the-art technology and Aggressively marketed their products. The Public sector banks are facing a stiff competition from the new private sector banks. The banks which have been setup in the 1990s under the guidelines of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS.
New Private Sector Banks
Superior Financial Services
Designed Innovative Products
Tapped new markets
Accessed Low cost NRI funds
Greater efficiency
47
INDIAN BANKING INDUSTRIES
The Indian banking market is growing at an astonishing rate, with assets
expected to reach US$1 trillion by 2010. An expanding economy, middle class,
and technological innovations are all contributing to this growth.
The country’s middle class accounts for over 320 million people. In
correlation with the growth of the economy, rising income levels, increased standard
of living, and affordability of banking products are promising factors for continued
expansion.
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The Indian banking Industry is in the middle of an IT revolution,
Focusing on the expansion of retail and rural banking. Players are becoming
increasingly customer - centric in their approach, which has resulted in innovative
methods of offering new banking products and services.
Banks are now realizing the importance of being a big player and are
beginning to focus their attention on mergers and acquisitions to take
advantage of economies of scale and/or comply with Basel II
regulation.“Indian banking industry assets are expected to reach US$1 trillion by
2010 and are poised to receive a greater infusion of foreign capital,” says Prathima
Rajan, analyst in Celent's banking group and author of the report. “The banking
industry should focus on having a small number of large players that can compete
globally rather than havinga large number of fragmented players."
UPCOMING FOREIGN BANKS IN INDIA
By 2009 few more names is going to be added in the list of foreign banks
in India. This is as an aftermath of the sudden interest shown by Reserve Bank of
India paving roadmap for foreign banks in India greater freedom in India. Among
them is the world's best private bank by EuroMoney magazine, Switzerland's UBS.
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The following are the list of foreign banks going to set up business in India:-
Switzerland's UBS
US-based GE Capital
Credit Suisse Group
Industrial and Commercial Bank of China
SWOT ANALYSIS
1. Strengths:
Capital Markets Franchise: Early focus and investment in its retail broking
franchise has enabled KMB to maintain a top three position for five years. Its
institutional broking business has been resilient to the loss of Goldman Sachs as a JV
partner.
Professional Management: Apart from possessing a strong talent pool across all
businesses, Kotak has shown remarkable stability in its top management over many
years.
Strong Technology: The relatively younger branch network gives it the advantage of
using more modern technology.
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Well Capitalized: KMB is well capitalized, both at the parent bank level and in the
subsidiaries. This provides an excellent platform for growth.
2. Weakness:
Wholesale Funding Costs: Kotak’s dependence on subsidiaries as well as its
relatively young branch network mean that it is dependent on wholesale funding,
which tends to be unstable when rates are volatile.
Latecomers: Because of its late entry in 2003, its rollout of a branch network has
come later than other private sector banks. As a result, it is at the wrong end of real
estate and wage inflation.
3. Opportunities:
Low loan and retail penetration: Retail credit in India provides significant
potential for growth given its under-penetration. The country’s consumer loan-to
GDP ratio is 8% and its mortgage/GDP ratio is at 4%.
Stressed Asset Business: As a consequence of significant legal changes a few years
ago, the stressed asset market is growing in size as recoveries are now possible. Kotak
has a strong presence in this business.
4. Threats:
Capital Market slow-down: A significant slowdown in capital markets growth could
start to affect earnings due to significant capital markets dependent revenue streams.
Competition: Private sector banks will continue to pose the largest threat to KMB’s
market share. The possible entry foreign banks post FY3/09 could further add to this
competitive pressure.
Rising Rates: Rising interest rates could affect loan growth and might lead to higher
NPLs.
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DATA ANALYSIS &INTERPRETATION
Q1. Do you earn interest on your current account?
BASE OF CUSTOMER YES NO
100 85 15
52
Current Acount
15%
85%
0
10
20
30
40
50
60
70
80
90
yes no
100
Figure 1
Interpretation: I have tried to know the opinion of respondents that does
this bank provide interest on current account.
Q2. Would you consider switching over to kotak Mahindra bank if you
get interest on your CA?
BASE OF CUSTOMER YES NO
100 60 40
53
60%
40%
0
10
20
30
40
50
60
Switching Over
yes 60
no 40
100
Interpretation: I have tried to know that, which the potential customers
of kotak Mahindra bank are.
Q3. Whether home banking facility is available to you from your bank?
BASE OF
CUSTOMER
YES NO
100 10 90
54
Interpretation: The response I gathered so that 80% of respondents say
that our bank does not provide home banking facility.
Q4. Are you interested in using home banking facility?
BASE OF
CUSTOMER
YES NO
100 75 25
55
Interpretation: The response which I gathered so that 75% respondents
are interested to using home banking facility without any charges.
Q5. Does the existing banker offer you a dedicated RM to service the a/c?
BASE OF
CUSTOMER
YES NO
100 15 85
56
Interpretation: The response which I gathered show that 15%
respondents have dedicated relationship manager it means that manager
should provide all type of information which is beneficial for the
customers.
Q6. Do you have any DD requirements for payments?
BASE OF
CUSTOMETR
YES(REGULARLY) YES
(RARELY)
NO
100 35 55 10
57
Interpretation: The response which I gathered 55% respondents say that
it rarely uses in service.
Q7. Do you pay for outstation cheque collection?
BASE OF
CUSTOMER
YES NO DON’T USE
THE SERVICE
100 20 5 75
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Interpretation: The responses which I gathered show that 75%
respondents say that don’t use this service because ATM’s are available.
Q8. Do you require CC/OD facility?
Base of customer Yes No
100 75 25
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Interpretation: The response which I gathered that 75% respondents say
that cash credit or over draft facility required. Especially business man
said.
Q9. Are you looking forward for any other benefits?
BASE OF
CUSTOMER
YES NO
100 75 25
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Interpretation: The response which I gathered that 75% respondents say
that yes it required like ECG machine, home banking facility, CC/OD
facility.
Q10. Would you consider switching over to kotak Mahindra bank if you
get
Interest on CA
Home banking facility
Dedicated RM
CC/OD facility
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BASE OF
CUSTOMER
YES NO
100 88 12
Interpretation: The response which I gathered that 88% respondents are
interested to switch over to kotak Mahindra bank because bank provides
special facility to the customers.
CONCLUSIONS
I enjoyed my summer training in Kotak Mahindra bank. As we know that it
is most crucial activity in the field of marketing &it is very difficult to read the
psychology of the people but still I enjoyed a lot &learnt so much from them.
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The project gave me immense opportunity to give myself exposure and ideas
in the field of marketing. Overall we conducted that most of the people get
themselves insured according to their need.
LIMITATIONS
Preparing this project was not an easy task. I had to suffer a lot of limitations.
It was time consuming process and some respondents were busy. A respondent
has to give time to us from this busy time schedule.
It was so much expensive because I used to travel different location in order to
interview the people.
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People did not to cooperate sometimes they reacted in negative manner against
this method of collect the information.
IN THESE TIE-UPS THERE ARE:
Some of them are not ready to listen because they showed least interest in the tie-
up with the kotak Mahindra bank.
The branded shops was not ready to give the 10% discount because they already
known by the market.
During this survey some problems like short span of time made it difficult to
convince the retail shops customer.
RECOMMENDATIONS
Kotak Mahindra bank. Bank had large share in Patna with knowledgeable
employees’ hard-working people there it easy for the bank to full in crowed.
To end up with, in short I would only like to draw the attention of are and all
to the central focal point i.e. which are operating in Patna. Kotak Mahindra
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bank. Bank with respect to infrastructure, customer satisfaction not work’s
service; personal attention towards customers is bank to the first in position.
And it wants take time for the bank network as the largest ape training today.
More focus towards customer satisfaction.
Customer complaint should be taken more seriously.
Good public relation should be maintained.
BIBLIOGRAPHY
BOOKS:
1. Retail management By Berry Berman and Joel.R.Evans
2. Research methodology By .R.Kothari
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Secondary Data:
1. Magazine
.Business world (August 11th 2007)
.Indian Today (February 7th 2008)
. Business Today (January 2nd 2007)
. Pitch (March 15th 2007)
2. Newspaper
. Times of I ndia (June 6th 2007)
. Hindustan Times (December 15th 2007)
3. Internet
Www.kotak. Com
Annexure
1. Name of the bank you are banking with?
a. Private
b.Public
c. foreign
2. Does your bank provide relationship manager?
a. Yes
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b. No
3. Does your bank provide advisory services?
a. Yes
b.No
4. Does your bank provide financial planning for your family?
a.Yes
b.No
5. Does your bank provide cash pick up from home or office?
a.Yes
b.No
6. what is your average turnover/month
a. Less than 2 laces b. 2-5 laces
c. 5-10 laces d. 10-15 laces
7. Who are your exiting bankers?
8. Who is main banker?
9. What are the facilities you are enjoying with the current bankers?
10. What is the minimum AQB that you have to keep in your CA with the exiting
bank?
11. What is the AQB that you generally maintain in your CA with your bank?
12. Do you earn interest on your CA?
A. Yes
B. No
12. Would you consider switching over to kotak Mahindra bank if you get interest
on your CA?
A. Yes
B. No
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14. Whether home banking facility is available to you from your bank?
A. Yes
B. No
15. Are you interested in using home banking facility?
A. Yes
B. No
16. Does the existing banker offers you a dedicated (RM) relationship manager to
service the account?
A. Yes
B. No
17. Do you have any DD requirement for payments?
A. Yes (regularly)
B. Yes (rarely)
C. No
18. Do you pay for outstation cheque collection?
A. Yes
B. No
C. Don’t use the service
If yes,
Charges?
19. Do you require CC/OD facility?
A. Yes
B. No
Any other funding facility
20. What’s your average cash deposit per month?
A. less than 1 lacs B. 1-2 lacs
C. 2-4 lacs D. 4-6 lacs
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21. Are you looking forward for any other benefits?
A. Yes
B. No
Others…………………………………………..
22. Would you consider switching over to kotak Mahindra bank if you get
A. interest on CA
B. Home banking facility
C. Dedicated RM
D. CC/OD facility
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