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summer intrnship
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Report on Summer Training
Customer Attrition
And
Methods to Prevent Attrition
In partial fulfillment of the
Requirements for the award of Degree of
Master of Business Administration
Batch 2010 - 2012
Submitted to: Submitted by:
Tarun Vashisth Shiwali Gupta
Assistant Professor Roll No.24
UNIVERSITY BUSINESS SCHOOL
PANJAB UNIVERSITY REGIONAL CENTRE
LUDHIANA
Page | 1
CERTIFICATE OF ORIGIN
This is to certify that Ms. Shiwali Gupta, a student of MBA from University Business School,
PURC, Ludhiana has worked in the Kotak Mahindra Bank, sec-9C, Chandigarh, under the
guidance and supervision of Mr. Saurabh Ghosh, Area Head and Mr. Aditya Uppal, Service
Manager for the purpose of Summer Training Program under the project title of Customer
Attrition and Methods To Prevent Attrition.
The period for which she was on training was for 8 weeks, starting from 9 th May 2011 to 2nd July
2011. This Summer Internship report has the requisite standard for the partial fulfillment the Post
Graduate Degree in MBA Program. To the best of our knowledge no part of this report has been
reproduced from any other report and the contents are based on internal database of the branch.
Signature
(Project-
Incharge)
Page | 2
ACKNOWLEGDEMENT
The satisfaction that accompanies the successful completion of any task would be incomplete
without the mention of people whose ceaseless co-operation made it possible, whose constant
guidance and encouragement crown all efforts with success.
I take this opportunity to express my profound sense of gratitude and thankfulness to Mr. Uday
Kotak (Executive Vice Chairman & Managing Director) and Mr. Saurabh Ghosh (Area
Head) for making me a part of Kotak Mahindra Bank Limited.
I would like to thank Mr. Aditya Uppal (Service Manager), my company guide for involving
me in Retail Banking project and providing me constant understanding and assistance. I
acknowledge him for his inspiration, motivation and his guidance towards solving a problem.
I would also like to thank Mr. Shashi Kapoor, Summer Placement Coordinator and Mr.
Tarun Vashisth, my Faculty Guide for his vital encouragement and support in every way. He
was there to provide assistance whenever needed.
I would also like to thank all the faculty members of my college and the staff of Kotak Mahindra
Bank for their help and support in every way.
Most especially I am thankful to my family who have been a source of inspiration for me from
the very beginning of my life and to GOD who made all things possible.
Page | 3
TABLE OF CONTENTS
CHAPTER PARTICULARS PAGE NO .
EXECUTIVE SUMMARY 5
1. INTRODUCTION TO SUBJECT 7
2. INTRODUCTION TO INDUSTRY 11
2.1 OVERVIEW OF INDUSTRY 17
2.2 PROFILE OF THE ORGANIZATION 18
2.3 HISTORY 27
2.4 RECENT ACHIEVEMENTS 29
2.5 PRODUCT RANGE 30
2.6 ORGANIZATION’S PERFORMANCE 63
2.7 FUTURE PROSPECTS/PLANS 65
2.8 SWOT ANALYSIS OF ORGANIZATION 66
3. OBJECTIVE, SCOPE AND LIMITATIONS 67
4. DATA PRESENTATION, ANALYSIS 69
AND INTERPRETATION
5. SUMMARY, CONCLUSION AND 76
RECOMMENDATIONS
6. BIBLIOGRAPHY 79
Page | 4
EXECUTIVE SUMMARY
Kotak Mahindra is one of the leading financial organizations, offering a wide range of financial
services that encompass every sphere of life. From commercial banking, to stock broking, to
mutual funds, to life insurance, to investment banking, Kotak Prime car loans the group caters to
the diverse financial needs of individuals and corporate.
I have taken a project on “Customer Attrition and Methods to Prevent Attrition” which involves
the functional area of Customer Relationship Management.
The main aim of this project is CASA REVIVAL which means to revive those Current and
Savings Accounts of the customers who have stopped banking with the bank due to some reason
or other. As they have not being maintaining the accounts their balances have gone into negative
on account of Non Maintenance Charges (NMC).
The project aims at customer relationship revival by asking them to start banking. This required
me to understand the product being offered by the bank viz. a viz. the competition. The project
was divided into two phases having both the Savings as well as Current Accounts to call upon.
The first Phase had data of those clients whose Negative balances were reversed and their
account zeroised basis their banking history and their interest in the First Phase of CASA
Revival Campaign. And the Second phase had the data of clients whose accounts have gone
into Negative balance in recent past.
The report is basically generated by using the stated Secondary Data i.e. database already
prepared by the bank for the sake of CASA Revival Campaign. The clients were asked to either
start maintaining the average quarterly balance (AQB) of their respective accounts OR to
do at least Two transactions in savings account and Five transactions in current account in
a month.
Page | 5
Following steps which have been taken to complete the project are:
Organizing database under two categories i.e. Savings Accounts and Current Accounts.
Study of the product offerings of the Bank and competition in the above segments.
Finding out the reasons for Customer Attrition Process i.e. what are the reasons that
might have forced customers to stop transacting with the bank.
Seeking guidance from the associate person to provide solutions to the clients.
Calling the customers for reviving their accounts and informing them of the USPs of the
Bank’s viz. a viz. the competition while updating them on the features of the campaign.
Framing the spread sheet of interested / non interested customers and updating the same
in bank’s database.
Visiting the client’s Office to collect the required documents to start the banking
relationship and enhancing business for the bank.
The output generated by CASA Revival campaign helped the bank to revive 68 accounts and
generate a value of Rs.40, 00,000/-
Taking into consideration the various Loopholes few Recommendations are also generated
targeting improvement in the Bank’s Business and Percentage of CASA of the same.
Page | 6
INTRODUCTION TO THE SUBJECT
MEANING
CASA accounts i.e. CURRENT ACCOUNT and SAVINGS ACCOUNT are an attempt to combine
savings and checking accounts to entice customers to keep their money in the banks. In Current
Account we don’t pay any Interest. The current account portion pays no or very low interest,
while the savings portion pays an above average return. Moreover in Savings Account we pay a
return of 4% per annum, calculated on per day basis. Current Account proportion in bank help to
generate more income as bank does not have to pay any interest. They are offered free or for a
fee depending on minimum or average balance requirements.
A form of CASAs have begun to emerge in the United States as well, as the banking institutions
attempt to limit the disintermediation that occurs when bank-deposit interest is lower than other
available short-term investments. These deposits tend to be cheaper than the bank issuing
certificates of deposit (CDs) and are considered more dependable as well.
CASA RATIO
CASA stands for current and savings account. Different kinds of deposits — current account,
savings account and term deposits — form the major source of funds for banks. The CASA ratio
shows how much deposit a bank has in the form of current and saving account deposits out of the
total deposit. Kotak Mahindra Bank Limited is presently having 31% of CASA share.
HOW IS IT IMPORTANT FOR BANKS?
A higher CASA ratio means higher portion of the deposits of the bank has come from current
and savings deposit, which is generally a cheaper source of fund. None of the bank pay interest
on the current account deposits and money lying in the savings accounts attracts a mere 4%
interest rate.
Hence, higher the CASA ratios better the net interest margin, which means better operating
efficiency of the bank.
Page | 7
Net interest margin is difference between total interest income and expenditure and is shown as a
percentage of average earning assets. Higher income from CASA will improve the net interest
margin as the cost of this fund is relatively lower. For instance, most banks lend at over 10%,
whereas, the rate of interest that they pay on saving deposit is just 4%. However, actual
realization depends on other expenditure, too.
CUSTOMER ATTRITION
Customer attrition, also known as customer churn, customer turnover, or customer
defection, is a business term used to describe loss of clients or customers.
Banks usually make a distinction between voluntary churn and involuntary churn. Voluntary
churn occurs due to a decision by the customer to switch to another banking institution,
involuntary churn occurs due to circumstances such as a customer's relocation, death, or the
relocation to a distant location.
In most applications, involuntary reasons for churn are excluded from the analytical models.
Analysts tend to concentrate on voluntary churn, because it typically occurs due to factors of the
company-customer relationship which companies control, such as how day to day interactions
are handled or how effectively the officials manage the relationship.
When companies are measuring their customer turnover, they typically make the distinction
between gross attrition and net attrition. Gross attrition is the loss of existing customers and
their associated recurring revenue during a particular period. Net attrition is gross attrition plus
the addition of similar customers at the original location.
Financial institutions often track and measure attrition using a weighted calculation
called Recurring Monthly Revenue (or RMR). In the 2000s, there are also a number of
business intelligence software programs which can mine databases of customer information and
analyze the factors that are associated with customer attrition, such as dissatisfaction with service
or technical support, billing disputes, or a disagreement over company policies. More
sophisticated predictive analytics software use churn prediction models that predict customer
churn by assessing their propensity of risk to churn.
Since these models generate a small prioritized list of potential defectors, they are effective at
focusing customer retention marketing programs on the subset of the customer base that are most
Page | 8
vulnerable to churn. In discussing customer attrition, there are a couple of points on which there
is general agreement: First, it is more cost-effective to retain customers than to acquire new
ones.
Second, and perhaps less understood, is that poor customer service causes many customers to
defect, oftentimes even more so then the price component--at the chagrin of management.
However, very few customers voice their concerns, but simply move over to the competition, so
this is hard to track. To improve loyalty and retain customers it is necessary to understand drivers
of loyalty and defection from the customer’s viewpoint. An organization must develop a loyalty
strategy and focus it on the right customer. They should systematically deliver what the customer
values and fix it quickly if they are unable to deliver. The organization should have proper
measurement and reward systems to encourage customer-centric behavior.
Emotions play a greater role than quality or price in the decision to defect. People leave a
company because they are ignored or not treated well. Also, only a small percentage of
customers complain before they leave--most don't bother because the barriers to switching are
often low.
CUSTOMER RELATIONSHIP MANAGEMENT
Customer relationship management (CRM) is a widely-implemented strategy for managing a
company’s interactions with customers, clients and sales prospects. It involves using technology
to organize, automate, and synchronize business processes—principally sales activities, but also
those for marketing, customer service, and technical support.
The overall goals are to find, attract, and win new clients, nurture and retain those the company
already has, entice former clients back into the fold, and reduce the costs of marketing and client
service.
Customer relationship management describes a company-wide business strategy including
customer-interface departments as well as other departments. Measuring and valuing customer
relationships is critical to implementing this strategy.
Page | 9
BENEFITS OF CRM
A CRM system may be chosen because it is thought to provide the following advantages:
Quality and efficiency
Decrease in overall costs
Decision support
Enterprise agility
Customer Attention
Page | 10
INTRODUCTION TO INDUSTRY
CONCEPTUAL FRAMEWORK OF BANKING
In modern age, banking constitutes the fundamental basis of economic growth. Earlier the
function of bank was restricted to accepting deposits and advancing loans to the general public.
But now the definition of bank has changed. It refers to an institution that deals in money.
Besides dealing in money, banks these days perform various other functions like credit creation,
agency function, general service, etc. Banks can now be called the nerve-centre of the country’s
capital market, industrial as well as trading activities.
INDUSTRY PROFILE
For more than three decades the banking sector in India has exceptional achievements. The most
striking is its extensive reach. It is not only metropolitan and cosmopolitan cities; it has reached
every remote corner of the country. This has led to tremendous growth in the banking sector.
Earlier one to had wait for hours to get simple things done like withdrawing cash, making a draft
etc. But now such activities are just a click away from you. The Reserve Bank of India’s (RBI)
role in achieving such milestones has been remarkable. There are three main phases in the Indian
Banking sector, these are:
Early phase of Indian Banks from 1786 to 1969
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.
Page | 11
INTRODUCTION TO RBI (RESERVE BANK OF INDIA)
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of
the Reserve Bank of India Act, 1934.
The Central Office of the Reserve Bank was initially established in Calcutta but was permanently
moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are
formulated.
Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully
owned by the Government of India.
PREAMBLE
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary
stability in India and generally to operate the currency and credit system of the country to its
advantage."
CENTRAL BOARD
The Reserve Bank's affairs are governed by a central board of directors. The board is appointed
by the Government of India in keeping with the Reserve Bank of India Act.
Appointed/nominated for a period of four years
Constitution:
Official Directors
Full-time : Governor and not more than four Deputy Governors
Non-Official Directors
Nominated by Government: ten Directors from various fields and one government
Official
Page | 12
Others: four Directors - one each from four local boards
Functions: General superintendence and direction of the Bank's affairs.
LOCAL BOARDS
One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi
Membership:
consist of five members each
appointed by the Central Government
for a term of four years
Functions : To advise the Central Board on local matters and to represent territorial and
economic interests of local cooperative and indigenous banks; to perform such other functions as
delegated by Central Board from time to time.
FINANCIAL SUPERVISION
The Reserve Bank of India performs this function under the guidance of the Board for Financial
Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central
Board of Directors of the Reserve Bank of India.
Objective
Primary objective of BFS is to undertake consolidated supervision of the financial sector
comprising commercial banks, financial institutions and non-banking finance companies.
Constitution
The Board is constituted by co-opting four Directors from the Central Board as members for a
term of two years and is chaired by the Governor. The Deputy Governors of the Reserve Bank
are ex-officio members. One Deputy Governor, usually, the Deputy Governor in charge of
banking regulation and supervision, is nominated as the Vice-Chairman of the Board.
Page | 13
CURRENT FOCUS
Supervision Of Financial Institutions
Consolidated Accounting
Legal Issues In Bank Frauds
Divergence In Assessments Of Non-Performing Assets And
Supervisory Rating Model for Banks.
TRAINING ESTABLISHMENTS
Have six training establishments
Three, namely, College of Agricultural Banking, Bankers Training College and Reserve
Bank of India Staff College are part of the Reserve Bank
Others are autonomous, such as, National Institute for Bank Management, Indira Gandhi
Institute for Development Research (IGIDR), Institute for Development and Research in
Banking Technology (IDRBT)
Page | 14
PHASE I
The General Bank of India was set up in the year 1786. Next, came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established,
which started as a private shareholders bank, mostly European shareholders.
In 1865, Allahabad Bank was established, for the first time, exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,
Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank and Bank
of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase, the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up with
The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949
as per amending Act of 1965 (Act No. 23 of 1965)
PHASE II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country.
Seven banks forming subsidiaries of State Bank of India were nationalized in 1960. On 19th
July, 1969, major process of nationalization was carried out. It was the effort of the then
Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were
nationalized.
Second phase of nationalization or Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under
Government ownership.
Page | 15
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crores.
PHASE III
This phase has introduced many more products and facilities in the banking sector. As a reform
measure, a committee was set up in 1991 under the chairmanship of M Narasimhan. It was called
the Narasimhan Committee and it worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking has been introduced. The entire
system has become more convenient and swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macro economics shock as other East Asian Countries suffered. This is
all due to a flexible exchange rate regimen, the foreign reserves are high, the capital account is
not yet fully convertible, and banks and their customers have limited foreign exchange exposure.
Currently overall, banking in India is considered as fairly mature in terms of supply, product
range and reach. Even though reach in rural India still remains a challenge for the private sector
and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets-as compared to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to
manage volatility-without any stated exchange rate-and this has mostly been true.
Page | 16
With the growth in the Indian economy expected to be strong for quite some time-especially in
its services sector, the demand for banking services-especially retail banking, mortgages and
investment services are expected to be strong. M&A s, takeovers, asset sales and much more
action (as it is unraveling in China) will happen on this front in India.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak
Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed
to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by them.
Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is
with the Government of India holding a stake), 29 private banks (these do not have government
stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They
have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively
The Indian banking can be broadly categorized into nationalized (government owned), private
banks and specialized banking institutions. The Reserve Bank of India acts a centralized body
monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks
in 1969, the public sector banks or the nationalized banks have acquired a place of prominence
and has since then seen tremendous progress. The need to become highly customer focused has
forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of
products and services through the net has galvanized players at all levels of the banking and
financial institutions market grid to look anew at their existing portfolio offering. Conservative
banking practices allowed Indian banks to be insulated partially from the Asian currency crisis.
Indian banks are now quoting al higher valuation when compared to banks in other Asian
countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge
Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in
approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche
retail segments.
Page | 17
The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian
market and is addressing the relevant issues to take on the multifarious challenges of
globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive
players capable of meeting the multifarious requirements of the large customers’ base. Private
Banks have been fast on the uptake and are reorienting their strategies using the internet as a
medium The Internet has emerged as the new and challenging frontier of marketing with the
conventional physical world tenets being just as applicable like in any other marketing
medium.
The Indian banking has come from a long way from being a sleepy business institution to a
highly proactive and dynamic entity. This transformation has been largely brought about by
the large dose of liberalization and economic reforms that allowed banks to explore new
business opportunities rather than generating revenues from conventional streams (i.e.
borrowing and lending). The banking in India is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks
(banks owned by the government) continue to be the major lenders in the economy due to their
sheer size and penetrative networks which assures them high deposit mobilization. The Indian
banking can be broadly categorized into nationalized, private banks and specialized banking
institutions.
The Reserve Bank of India act as a centralized body monitoring any discrepancies and
shortcoming in the system. It is the foremost monitoring body in the Indian financial sector.
The nationalized banks (i.e. government-owned banks) continue to dominate the Indian
banking arena. Industry estimates indicate that out of 274 commercial banks operating in
India, 223 banks are in the public sector and 51 are in the private sector. The private sector
bank grid also includes 24 foreign banks that have started their operations here. Under the
ambit of the nationalized banks come the specialized banking institutions. These co-
operatives, rural banks focus on areas of agriculture, rural development etc. unlike commercial
banks these co-operative banks do not lend on the basis of a prime lending rate. They also
have various tax sops because of their holding pattern and lending structure and hence have
lower overheads. This enables them to give a marginally higher percentage on savings
deposits. Many of these cooperative banks diversified into specialized areas (catering to the
vast retail audience) like car finance, housing loans, truck finance etc. in order to keep pace
Page | 18
with their public sector and private counterparts, the co-operative banks too have invested
heavily in information technology to offer high-end computerized banking services to its
clients.
Complementing the roles of the nationalized and private banks are the specialized Financial
Institutions (MFI) or Non Banking Financial Institutions (NBFCs). With their focused
portfolio of products and services, these Non Banking Financial Institutions act as an important
catalyst in contributing to the overall growth of the financial services sector. NBFCs offer loans
for working capital requirements, facilitate mergers and acquisitions, IPO finance, etc. apart
from financial consultancy services. Trends are now changing as banks (both public and
private) have now started focusing on NBFC domains like long and medium-term finance,
working cap requirements. IPO financing to etc to meet the multifarious needs of the business
community.
The liberalize policy of Government of India permitted entry to private sector in the banking,
the industry has witnessed the entry of nine new generation private banks. The major
differentiating parameter that distinguishes these banks from all the other banks in the Indian
banking is the level of service that is offered to the customer. Verify the focus has always been
centered around the customer – understanding his needs, preempting him and consequently
delighting him with various configurations of benefits and a wide portfolio of products and
services. These banks have generally been established by promoters of repute or by ‘high
value’ domestic financial institutions. The popularity of these banks can be gauged by the fact
that in a short span of time, these banks have gained considerable customer confidence and
consequently have shown impressive growth rates. Today, the private banks corner almost four
per cent share of the total share of deposits. Most of the banks in this category are concentrated
in the high-growth urban areas in metros (that account for approximately 70% of the total
banking business). With efficiency being the major focus, these banks have leveraged on their
strengths and competencies viz. Management, operational efficiency and flexibility, superior
product positioning and higher employee productivity skills.
The private banks with their focused business and service portfolio have a reputation of being
niche players in the industry. A strategy that has allowed these banks to concentrate on few
reliable high net worth companies and individuals rather than cater to the mass market. These
well-chalked out integrates strategy plans have allowed most of these banks to deliver
Page | 19
superlative levels of personalized services. With the Reserve Bank of India allowing these
banks to operate 70% of their businesses in urban areas, this statutory requirement has
translated into lower deposit mobilization costs and higher margins relative to public sector
banks.
The Indian banking industry is currently in a transition phase. On the one hand, the public
sector banks, which are the mainstay of the Indian banking system, are in the process of
consolidating their position by capitalizing on the strength of their huge networks and customer
bases. On the other, the private sector banks are venturing into a whole new game of mergers
and acquisitions to expand their bases.
OVERVIEW OF INDUSTRY
BANKING IN INDIA
Central Bank Reserve Bank of India
Nationalized
Banks
State Bank of India ,Allahabad Bank ,Andhra Bank ,Bank of Baroda, Bank of
India ,Bank of Maharashtra ,Canara Bank ,Central Bank of India ,Corporation
Bank ,Dena Bank ,Indian Bank ,Indian Overseas Bank, Oriental Bank of
Commerce ,Punjab & Sind Bank , Punjab National Bank ,Syndicate Bank ,Union
Bank of India ,United Bank of India ,UCO Bank
Private Banks
Bank of Rajasthan ,Bharat Overseas Bank , Catholic Syrian Bank , City Union
Bank ,Development Credit Bank , Dhanalakshmi Bank ,Federal Bank ,Ganesh
Bank of Kurundwad ,HDFC Bank ,ICICI Bank ,IDBI Bank ,IndusInd Bank ,ING
Vysya Bank ,Jammu & Kashmir Bank ,Karnataka Bank Limited ,Karur Vysya
Bank ,Kotak Mahindra Bank ,Lakshmi Vilas Bank ,United Western Bank ,Axis
Bank ,YES Bank
Page | 20
PROFILE OF THE ORGANIZATION
Kotak Mahindra is one of India's leading financial organizations, offering a wide range of
financial services that encompass every sphere of life. Kotak Mahindra Bank as a group
comprises of companies that manage Personal Banking, Capital Investments, Brokerage,
Corporate Banking, Wealth Management, Advisory, Kotak Prime Car Loans, Treasury and
Insurance segments from commercial banking, to stock broking, to mutual funds, to life
insurance, to investment banking, group caters to all of the financial needs of individual and
corporate.
The group has a net worth of over Rs. 6,327 crore and has a distribution network of more
than 1300 branches, franchisees, representative offices and satellite offices across cities
and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and
Singapore. The Group services around 5.9 million customer accounts.
Kotak Group was established in 1985 for Stock broking businesses in the UK. Kotak Mahindra
Bank is the parent company of the group.
In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of
specialist asset management skills through its 23 asset management businesses. The company’s
US Life business recorded sales of $4 billion at the end of 2002.
Operations in the United Kingdom are focused on wealth management, through Garrard as one
of the leading private client.
The OLD MUTUAL Group has the ability to cater for a variety of consumer segments and offers
a comprehensive and innovative range of products for all income groups.
Kotak Mahindra Bank (KMB), formerly known as Kotak Mahindra Finance (KMFL), was
promoted in 1985 by Uday S Kotak and Sidnery A Pinto along with Kotak & Company
under the name Kotak Capital Management Finance. The promoters were joined by Harish
Page | 21
Mahindra and Anand Mahindra of Mahindra & Mahindra in 1986, and the company was
renamed Kotak Mahindra Finance.
Kotak Mahindra Finance started as a finance company and was later converted in to a bank in
2002. The company has established itself as one of India's leading financial institutions with
a range of services encompassing corporate finance, capital market financing, asset
reconstruction, commercial vehicle finance, consumer finance, car finance, investment
banking, mutual funds, and life insurance.
KMB offers finance solutions that encompass every phase of life for individual as well as a
corporate. It also had international partnerships with Goldman Sachs (one of the world's largest
investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated
automobile financiers) and Old Mutual (a large insurance, banking and asset management
conglomerate) through joint ventures and subsidiary companies.
STRUCTURE OF THE COMPANY
The Kotak Mahindra Group, established in 1986, is one of India's leading financial institutions.
The group has a net worth of over Rs. 5,609 crore, employs around 17,100 people in its
various businesses.
Kotak Mahindra has main offices in Mumbai and New Delhi and has a distribution network of
branches, franchisees, representative offices and satellite offices across 344 cities and towns in
India and offices in London, New York, Dubai, San Francisco, Singapore and Mauritius. The
Group services around 3.6 million customer accounts.
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MANAGEMENT
Dr. Shankar Acharya Chairman
Mr. Uday Kotak Executive Vice Chairman &
Managing Director
Mr. Anand Mahindra Member
Mr. K.M Gherda Member
Mr. Cyril Shroff Member
Mr. Pradeep Kotak Member
Mr. Shivaji Dam Member
Mr. C. Jayaram Executive Director
Mr. Dipak Gupta Executive Director
Mr. Bina Chandarana Secretary & Senior Vice President
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KOTAK MAHINDRA OPERATIONS
BANKING AND SAVINGS
KOTAK is a leading provider of financial services to small, medium-sized and middle-market
enterprises. The Group has over 33700 such active customers in India, including sole proprietors,
partnerships, clubs and associations, incorporated businesses and publicly quoted companies.
Commercial Banking provides a full range of banking services to these customers including
multi-currency business accounts, payments and cash management, trade services, factoring and
a range of borrowing solutions.
For complete customer care Kotak Mahindra Bank provides 24 Hrs toll free phone banking, net
banking facilities and mobile banking services.
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KOTAK MAHINDRA - OPERATIONS
Banking &
Saving
Insurance&
Investment
Loan &
Borrowing
Corporate&
Institutional
INVESTMENT AND INSURANCE
The Kotak Mahindra Bank website provides you info on the ongoing interest rates and services
charges for banking products and services by Kotak Mahindra Bank. Also get information on the
careers and job opening with Kotak Mahindra Bank Limited. Any query about the recruitment
procedure at Kotak Mahindra is also entertained online. The website provides the Kotak
Mahindra Bank share price, PPT, their market share etc. Kotak Mahindra Bank Ltd. is presently
one of the finest banking services providers in India. The specialized products by Kotak
Mahindra Bank India that drive mass interest among the customers are Kotak Mahindra Life
Insurance.
LOANS AND BORROWINGS
A growing pie of commercial banking and increasing thrust on fee-based revenues from alternate
asset and wealth management services are likely to reduce volatility in Kotak’s earnings and
valuations.
KMB also has a wealth management unit, which focuses on HNIs. The group’s scale and reach,
coupled with a strong brand has enabled the bank to scale up its wealth management unit. Kotak
is currently the wealth Manager/advisor to over 3,700 families and around 30% of the top-
300wealthy families in India. It is present in 14 cities, with about 110 relationship managers.
CORPORATE AND INSTITUTIONAL
It provides a comprehensive range of products that include foreign exchange, money market,
fixed income and currency and interest rate derivative products in both Indian rupees and major
currencies.
KMB is now gearing up to ride the crest of the retail banking wave that will sweep across this
country of 1.1 billion people over the coming years.
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KOTAK GROUP IS INVOLVED IN THE FOLLOWING AREAS OF BUSINESS:-
Kotak Mahindra Prime Ltd.
Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group (Kotak
Group) formed to finance all passenger vehicles. The company is dedicated to financing and
supporting automotive and automotive related manufacturers, dealers and retail customers. The
Company offers car financing in the form of loans for the entire range of passenger cars and
multi utility vehicles. The Company also offers Inventory funding to car dealers and has entered
into strategic arrangement with various car manufacturers in India for being their preferred
financier.
As on March 31, 2005, KMP has a retail distribution network comprising of 54 branches
(including representative offices) covering about 100 locations in 17 states in the country and has
a wide network of Direct Marketing Associates, brokers and agencies supporting the distribution
network and servicing around 113,000 customers.
Kotak Mahindra Capital Company Ltd.
Kotak Investment Banking (KIB) is India's premier Investment Bank
Kotak Investment Banking (KIB) and Kotak Institutional Equities represent the securities
business of the Kotak Mahindra Group (KI),
Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach
and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak
Investment Baking’s core business areas include Equity Issuances, Mergers & Acquisitions,
Advisory Services and Fixed Income Securities and Principal Business.
Its strength lies in understanding the clients' businesses backed by a strong research team and an
extensive distribution network, which spans a wide variety of investors across the country. It is
also the first Indian Investment Bank to be registered with the Securities & Futures Authority in
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the UK (through our wholly owned subsidiary) and the National Association of Securities and
Dealers in the USA.
It’s the first Indian Investment Bank to be appointed by the Government of India as a Co-lead
Manager in their international divestment of Gas Authority of India Ltd through a GDR offering.
Kotak Investment Bank today well positioned in an increasing globalize environment to provide
full service to its clients based either in India or overseas.
Kotak Mahindra Bank Ltd.
Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak
Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on
November 2, 1985 and obtained its ‘Certificate of Commencement of Business on February 11,
1986.
It commenced operations with Bill Discounting and soon started other fund-based activities like
corporate leasing & hire purchase, automobile finance and money market operations.
Subsequently, it also entered the funds syndication and the Investment banking business.
Kotak Mahindra Asset Management Company
Kotak Mahindra Asset Management Company (KMAMC), a wholly owned subsidiary of
KMBL, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMAMC started
operations in December 1998 and has over 1, 35,000 investors in various schemes. KMMF offers
schemes catering to investors with varying risk- return profiles and was the first fund house in
the country to launch a dedicated gilt scheme investing only in government securities.
International Subsidiaries
Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra
Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the
international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited
and in the USA, through Kotak Mahindra Inc. USA. These companies are subsidiaries of Kotak
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Mahindra Capital Company (KMCC) – the Investment Banking Division of the Group. Services
offered include GDR and ADR trading and broking, debt syndication, placement of Indian
securities and advisory services. Kotak Mahindra was the first Indian group to be registered with
the Securities and Futures Authority, U.K. Also, Kotak Mahindra is the first Indian group
registered in the US providing service to both Institutional investors and High Net worth Clients
in the US for their investments into Indian markets.
Kotak Securities
Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of India’s largest
brokerage and distribution house. Over the years Kotak Securities has been one of the leading
investment service providers catering to the needs of various investor categories both
institutional and non-institutional.
The Private client group (PCG) of the Company provides value added investment advisory
services to high net worth individuals, NRI investors, trusts, corporate and Banks. The
investment product range offered by PCG covers equity investment and equity trading, equity
derivatives, portfolio management, IPO’s and Mutual funds. The Company has a full fledged
research division involved in macroeconomic studies, sectoral research and company specific
equity research combined with a strong and well networked sales force which helps deliver
current and up to date market information and news.
Kotak Securities Ltd., Depository Participant with National Securities Depository Limited
(NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services wherein the
investors can use the brokerage services of the Company for executing the transactions and the
depository services for settling them.
Under the Portfolio Investment Scheme offered by the Company, the funds of the investors are
managed by a highly competent team comprising of Equity Strategist, a Portfolio Manager and a
team of equity, technical and derivatives analysts.
Kotak Securities Ltd., also an Approved Intermediary under the Securities Lending Scheme,
1997, facilitates clients to borrow and lend securities.
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HISTORY
THE GENESIS OF THE EMERGENCE OF KOTAK GROUP
Kotak began operations as a trade finance company in 1986 and was predominantly engaged in
consumer lending. However over the years, as the group began expanding its financial services
offerings, the share of profits from the lending business has declined. While broking and IB
would continue to account for a large share of the group’s profits, we expect the profit
contribution of the lending business to improve substantially. Kotak carries out its lending
business through three entities – Kotak Mahindra Bank, Kotak Mahindra Prime and Kotak
Mahindra Investments – each focusing on a niche
1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
1991The Investment Banking Division is started. Takes over FICOM, one of India's
largest financial retail marketing networks
1992 Enters the Funds Syndication sector
1995
Brokerage and Distribution businesses incorporated into a separate company –
Kotak Securities. Investment Banking division incorporated into a separate company -
Kotak Mahindra Capital Company
1996
The Auto Finance Business is hived off into a separate company - Kotak Mahindra
Prime Limited (formerly known as Kotak Mahindra Primus Limited).
Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles. The launch of Matrix Information Services Limited marks
the Group's entry into information distribution.
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1998Enters the mutual fund market with the launch of Kotak Mahindra Asset Management
Company.
2000
Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
Kotak Securities launches 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. converts to a commercial bank - the first Indian
company to do so.
2004 Launches India Growth Fund, a private equity fund.
2005
Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime
(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak
Mahindra.
Launches a real estate fund
2006Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company
and Kotak Securities
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RECENT ACHIEVEMENTS
Aon Hewitt conducted the 7th Best Employers in India Study, in 2011.Kotak Mahindra
Bank Limited participated for the 3rd consecutive time and has been ranked 11th
amongst the participating organizations. This time round too, we were declared amongst
the Top 25 Best Employers in India!
KMCC was voted the Best Equity House in India by Euro money in 2003, 2004 and
2005, by Asia Money in 2003 and 2004 and by IFR in 2004.
In 2004, Asia Money also voted its $ 2267 million deal for ONGC the Best Deal in India.
The year before, the Maruti IPO won IFR’s award for the Best Mid-Cap Equity Deal.
Kotak Mahindra Bank Ltd. launched its Home Banking Service. The service is available
across all urban & metro branches and is aimed at making banking convenient for the
retail customer.
Kotak Mahindra Bank was awarded as Best Security Strategist by Microsoft India and
Best IT Implementation for Information security by PCQUEST.
Ranked among top ten banks in the country in Business Today – “Best Banks” survey
Leading Broking House in India: market share in excess of 8% of market volumes (for
the month of May, 2005).
Overall asset managed/ advised by the group in excess of USD 2.60 billion
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Pioneered for India’s first book-built issue in 1999-2000 and played a key role in several
industry-defining deals such as the Tech Mahindra, Hughes Software and Maruti Udyog
IPOs.
The bank is planning to reach by expanding the network of its branches across the
country. KMB started with a single branch in 2003 and very rapidly ramped up its
branches to 133 by H1FY08. We believe that KMB is in a sweet spot to tap the retail
opportunity by taking the count of its branches to 200 by FY09E. This will help the bank
to grow its retail advances (retail loans from the maximum proportion of its loan book).
Singular focus and a low base would enable to register healthy growth on the advances
and deposits side
KMB ‘s Net Profit zoomed by 125% during the first quarter of the Fiscal Year (April to
June 06) , way ahead of other competitors, including HDFC Bank(48.4%) , UTI
Bank(30.14%) and ICICI Bank(17%).
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PRODUCT RANGE
The product Range of the project is from Current Account to Savings Account.
The Range Of Current Account Is Quite Wide One Which Is As Follows:
1. NEO CURRENT ACCOUNT
Accounts designed for small-mid size business or an enterprise
At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you
the Kotak Neo Current Account, power-packed with exclusive features that can make a
tremendous difference to the way you do business.
Key Features:
Charges reversal offer upto 1000 rupees p.a.!
Unsecured overdraft facility upto Rs. 10 lakhs!
Free Cash Deposit at Home Branch!
Debit Card with Access at all Domestic VISA and Cash net ATMs!
SMS Requests and Alerts Service!
2. EDGE CURRENT ACCOUNT
Accounts designed for small-mid size business or an enterprise.
At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to
you the Kotak Edge Current Account, power-packed with exclusive features that can make a
tremendous difference to the way you do business.
Key Features:
Kotak Active Money
Free DD/BC, NEFT & RTGS
Free payable at - par cheque book
Free cash deposit at home branch
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Home Banking service
Unsecured overdraft facility upto Rs.10 lakhs
3. PRO CURRENT ACCOUNT
Accounts designed for small-mid size business or an enterprise.
At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you
the Kotak Pro Current Account, power-packed with exclusive features that can make a
tremendous difference to the way you do business.
Key Features:
Free DDs, NEFT, RTGS & at - par cheque book
Free cheque collection
Free cash deposit at home branch
Free Home Banking service
Kotak ActivMoney
Unsecured overdraft facility upto Rs.10 lakh
4. ELITE CURRENT ACCOUNT
Accounts designed for small-mid size business or an enterprise
At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you
the Kotak Elite Current Account, power-packed with exclusive features that can make a
tremendous difference to the way you do business.
Key Features:
Free DDs, NEFT, RTGS & at - par cheque book
Free cheque collection
Free cash deposit at home branch
Free Home Banking service
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Kotak ActivMoney
Unsecured overdraft facility upto Rs.10 lakhs
5. ACE CURRENT ACCOUNT
Accounts designed for small-mid size business or an enterprise
At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you
the Kotak Ace Current Account, power-packed with exclusive features that can make a
tremendous difference to the way you do business.
Key Features:
Free DDs, NEFT, RTGS & at - par cheque book
Free cheque collection
Free cash deposit at home branch
Free Home Banking service
Kotak ActivMoney
Unsecured overdraft facility upto Rs.10 lakhs
The Range Of Savings Accounts Is As Follows:
1. ACE SAVINGS ACCOUNT
Gateway to the world of financial benefits and privileged banking transactions
Open a Kotak Ace Account and lead a worry free life.
Now that you know what worries you don't have to put up with when you open a Kotak Savings
Account, you may want to give some thought to how many free banking services would you like
to avail.
The Kotak Ace Account is the top-end variant of the Kotak Savings Account, where you also
enjoy a wide range of free services and greater financial flexibility
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The Kotak Ace Savings Account with Maximum free banking services
This top end Savings Account variant is suited for those who would like to avail maximum
banking and investment related benefits, over and above the numerous FREE services provided
by the Kotak Pro Savings Account.
Some of the extra benefits of the Kotak Ace Savings Account include:
Free Access to all Domestic and International VISA ATMs
Free Gold Debit Card
Free Add-on and Supplementary Gold Debit Card
Three NMC Waived Edge Savings Accounts for family members*
Free Demand Drafts (Unlimited at Kotak locations)
Free RTGS
Extended Debit Card withdrawal limit of Rs. 1.75 lac per day through ATM / POS
15% Discount on Locker Rent *
2% Discount on Gold Eternity Coins & Bars*
Waiver on first year Demat Annual maintenance charge
Free outstation cheque collection
You can enjoy the advantages of the Kotak Ace Savings Account by maintaining an Average
Quarterly Balance of Rs. 50,000.
*Subject to maintenance of the required AQB in the Ace Savings Account.
NMC: Non-Maintenance Charge
At Kotak Mahindra Bank we believe that everyone has the right to worry free banking. So do
take a closer look at the features of these accounts and decide which one fits your needs the best.
2. PRO SAVINGS ACCOUNT
Account packed with powerful features
Open a Kotak Pro Account and lead a worry free life.
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Now that you know what worries you don't have to put up with when you open a Kotak Savings
Account, you may want to give some thought to how many free banking services would you like
to avail.
The Kotak Pro Savings Account is the most recommended of our Savings Account suite. It offers
you the 'best in class' features at a very manageable quarterly average balance. As you glance
through the numerous features and benefits of this account, you will quickly see why this is truly
the new age savings account.
The Kotak Ace Savings Account with Maximum free banking services
This account is ideally suited for those who are interested in availing banking related benefits, as
well as taking advantage of the numerous FREE services provided by the Kotak Pro Savings
Account.
Some of the key advantages of the Kotak Pro Savings Account include:
Free Access to all Domestic VISA ATMs
Free Gold Debit Card for 1st Year
Free Classic Debit Card
One NMC Waived Edge Savings Account for your family member*
Free cash pick-up / delivery (One Call per day)
Free instrument pick-up / delivery (One Call per day)
Free NEFT
Free Cash withdrawal from any Kotak Branch across India.
50 % Discount on first year Demat AMC
You can enjoy the advantages of the Kotak Pro Savings Account by simply maintaining an
Average Quarterly Balance of Rs. 20,000.
*Subject to maintenance of the required AQB in the Pro Savings Account.
NMC: Non-Maintenance Charge
At Kotak Mahindra Bank we believe that everyone has the right to worry free banking. So do
take a closer look at the features of these accounts and decide which one fits your needs the best.
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3. EDGE SAVINGS ACCOUNT
Financial package customized to suit your individual banking needs
Open a Kotak Edge Account and lead a worry free life.
Now that you know what worries you don't have to put up with when you open a Kotak Savings
Account, you may want to give some thought to how many free banking services would you like
to avail.
The Kotak Edge Account is the basic variant of the Kotak Savings Account. It has been designed
to suit the requirements of the new age professional, who wants a bank account to provide that
little bit extra to be able to live life worry-free.
The Kotak Edge Savings Account with peace of mind.
This account is ideally suited for those who are interested in availing of the banking related
benefits, without the additional FREE services provided by the Kotak Pro Savings Account.
Some of the key benefits of the Kotak Edge Savings Account include:
Free Access to all Domestic VISA ATMs
Free Classic Debit Card for 1st Year
Free At-par Cheque (upto 25 leaves per qtr.)
Free Phone Banking, Net Banking, Mobile Banking and SMS Banking
Free NEFT
You can enjoy the advantages of the Kotak Edge Savings Account by simply maintaining an
Average Quarterly Balance of Rs. 10,000.
Helpful advice: Kotak Bank has discovered that a majority of the people choosing a Kotak Edge
Account actually end up maintaining the Average Quarterly Balance required to maintain a
Kotak Pro Account. It may be in your interest to choose the Kotak Pro Savings Account and not
miss out on the extra advantages & free services!
At Kotak Mahindra Bank we believe that everyone has the right to worry free banking. So do
take a closer look at the features of these accounts and decide which one fits your needs the best.
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4. NOVA SAVINGS ACCOUNT
Financial package customized to suit your individual banking needs
Kotak Mahindra Bank's Nova Savings Account is a complete financial package customized to
suit your individual banking needs. Our constant endeavor is to enable regular financial
transactions through our online platform so that most of your payments can be made directly
through your account or card.
Key features
Unlimited Access
Financial payments facilitated through the savings account
Quick and easy funds transfer
5. CLASSIC SAVINGS ACCOUNT
Account packed with powerful features
Kotak Mahindra Bank's Classic 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.
Try the benefits of this account and you will never want to bank elsewhere!
Key features
Unlimited Access
Financial payments facilitated through the savings account
Quick and easy funds transfer
ActivMoney
Dedicated relationship manager
6. EASY SAVINGS ACCOUNT (NO FRILLS)
Easy to maintain, hassle-free savings avenue
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You need an easy to maintain, hassle-free savings avenue for your hard-earned money. We offer
you the Kotak Easy Savings Account, armed with 'user-friendly' Convenience Banking facilities.
The Kotak Easy Savings Account is a convenient way to make your money work harder.
Key Features
Easy to maintain, hassle-free savings avenue
7. CORPORATE SALARY ACCOUNT
Choose the Account best suited to your needs
You need a guide who helps you manage your wealth and make the most of your hard earned
money. We offer you the Kotak Salary Account, armed with exclusive privileges designed
exclusively for you. We have two types of accounts to offer - Kotak Edge Salary Account and
Kotak Ace Salary Account. Each product is feature packed ranging from Free Access to over
17000 ATMs, Free Demand Drafts, Free At -Par Cheque Facility to Free Trading Account &
Free Demat Account. You can choose the one that suits you the most and we would be delighted
to meet your requirements.
Key Features
Zero Balance account
Personalized At Par Cheque book
Reimbursement Account
Investment Account
Office Banking
Free Demand Drafts
Eligibility
The organization needs to have a minimum of 25 employees and average salary per account of
Rs. 20,000 per month.
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ORGANIZATION’S PERFORMANCE
THE JOURNEY SO FAR:
In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford
Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra
(FCKM) held by Kotak Group.
In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital
and Kotak Securities.
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COMPARISON CHART WITH THE COMPETITORS
CORPORATE IDENTITY:
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FUTURE PROSPECTS/PLANS
VALUE AND MISSION
“At Kotak”, we aim to help customers 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.”
The Global Indian Financial Services Brand- Our Customers will be the benefits of dealing with
a global Indian brand that best understands their needs and delivers customized pragmatic
solutions across multiple platforms. We will be a world class Indian Financial Services group.
Our technology and best practices will be benchmarked along international lines while our
understanding of customs will be uniquely Indian. We will be more than a repository of our
customer`s savings. We, the group, will be a single window to every financial service in a
customer`s universe.
The most preferred employer in financial services- A culture of empowerment and a spirit of
enterprises attracts bright minds with an entrepreneurial streak to join us and stay with us.
Working with a home-grown, professionally-managed company, has partnerships with
international leaders, gives our people a perspective that is universal as well as unique.
The most trusted financial services company- We will create an ethos of trust across all our
constituents. Adhering to high standards of compliance and cooperate governance will be an
integral part of building trust.
Value Creation- Value Creation rather than size alone will be our business drives.
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SWOT ANALYSIS OF THE ORGANIZATION
STRENGTH
The working of company is well defined and all processes are organized to fullest.
The customer relations are well maintained.
WEAKNESS
The market conditions are not favoring the company. Thus Branch expansion is on a
hold and revenue from third party products is on a decline.
Miselling done by the employees hinders the Customer Relationship Management.
OPPORTUNITY
The company had an advantage of being one of the first movers in the financial services
sphere.
THREAT
Bigger Private Sector banks like HDFC Bank, ICICI Bank, etc and foreign players have a
considerable monopoly in the market, especially in the HNI segment which the Bank is
targeting.
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OBJECTIVE, SCOPE AND LIMITATIONS
OBJECTIVE OF THE STUDY
The main objective of this Project is to understand the importance of Current and Savings
Account which serves as bread and butter for a bank and decreased percentage of which can
affect the financial growth cycle and structure of any bank.
Few features related to the objectives of the project are as follows:
To understand the concept of Retail Selling of the products that are being offered by the
Bank under various categories of CASA.
To revive maximum Current and Savings Accounts to fulfill the Target of CASA Revival
Campaign.
To analyze various factors responsible for Customer Attrition and generate Methods to
prevent the same.
SCOPE OF THE STUDY
The scope of the study has included the Tricity i.e. Chandigarh, Panchkula and Mohali.
Customers of these areas have been under taken for the sake of CASA Revival Campaign i.e. the
Project covered the Campaign Area of the customers who are located in the above areas. The
Customer Database has been divided into two categories i.e. Database having list of the
customers with negative balances in their Current or Savings Accounts and other list of
customers with zero balances in their Current or Savings Account and process is taken into
consideration accordingly for the Revival Campaign.
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LIMITATIONS OF THE STUDY
Some of the limitations of the project are listed as below:
The time period of just 8 weeks was the major limitation.
To convince people for the revival of their accounts for the purpose of waive off of
negative charges form their account balance.
Inability to access the information about customer from provided Personal Computer like
customer’s Account Number, Customer Relationship Number (CRN), Contact Number
etc.
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DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
DATA PRESENTATION
Initially Secondary Raw Data has been taken for the purpose of analysis and interpretation of the
same but after processing it.
The Data which is available is the Secondary one i.e. already collected by the Bank employees. It
was in raw form but was presented in informational form after processing of the same. The
processed information was of great use for the purpose of analyzing the database and preparing a
report of the same. The processing of the data inculcated
The diversification of customers under categories of Negative Balance and Zero Balance
Accounts.
Formulating the customer’s detail in spreadsheet with their Account number, Customer
Relationship number and Phone number.
Calculating the respective ratios like Customer’s Account Conversion Ratio and
Customer Retention Ratio.
Generating the final Report of Positive Customers, showing their interest in the CASA
Revival Campaign.
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DATA INFORMATIONPROCESSINGPROCESSING
DATA ANALYSIS AND INTERPRETATION
The Database used for the analysis and interpretation of the Report is Secondary Database
provided by the bank. The Database is divided under two Categories of Zero Balance Accounts
and Negative Balance Accounts. The Analysis and Interpretation of Zero Balance and Negative
Balance Accounts are done separately and the respective ratios like Conversion Ratio and
Retention Ratio are calculated for both the cases. The total of 68 Accounts has been revived with
amount of Rs 40, 00,000.
THE ANALYSIS AND INTERPRETATION OF ZERO BALANCE ACCOUNTS ARE AS
FOLLOWS:
Total Number of Calls=205
Number of Positive Results=11
Number of Accounts Actually Revived=6
CALCULATION OF RATIOS
Conversion Ratio=Number of Positive Results/Total Number of Calls
Conversion Ratio=11/205
Conversion Ratio=0.05
Retention Ratio= Number of Accounts Actually Revived/ Number of Positive Results
Retention Ratio=6/11
Retention Ratio=0.54
RESULTS
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CONVERSION RATIO=0.05
&
RETENTION RATIO=0.54
THE ANALYSIS AND INTERPRETATION OF NEGATIVE BALANCE ACCOUNTS
ARE AS FOLLOWS:
Total Number of Calls=743
Number of Positive Results=70
Number of Accounts Actually Revived=62
CALCULATION OF RATIOS
Conversion Ratio=Number of Positive Results/Total Number of Calls
Conversion Ratio=70/743
Conversion Ratio=0.09
Retention Ratio= Number of Accounts Actually Revived/ Number of Positive Results
Retention Ratio=62/70
Retention Ratio=0.88
RESULTS
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CONVERSION RATIO=0.09
&
RETENTION RATIO=0.88
REPRESENTATION OF DATABASE SHOWING TOTAL CALLS AND NUMBER OF
POSITIVE RESULTS:
The above figure shows that Total calls for Zero Balance Database made are 205, out of which
11 Customers showed their interest for the revival at the initial stage.
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REPRESENTATION OF DATABASE SHOWING INTERESTED CUSTOMERS AND
NUMBER OF ACCOUNTS ACTUALLY REVIVED:
The above figure shows that Total Positives Results for Zero Balance Database are11, out of
which 6 Accounts are actually revived.
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REPRESENTATION OF DATABASE SHOWING TOTAL CALLS AND NUMBER OF
POSITIVE RESULTS:
The above figure shows that Total calls for Negative Balance Database made are 743, out of
which 70 Customers showed their interest for the revival at the initial stage.
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REPRESENTATION OF DATABASE SHOWING INTERESTED CUSTOMERS AND
NUMBER OF ACCOUNTS ACTUALLY REVIVED:
The above figure shows that Total Positives Results for Negative Balance Database are 70, out of
which 62 Accounts are actually revived.
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SUMMARY AND CONCLUSION
The project is about the Customer Attrition Rate and Methods to Prevent Attrition which
works on the background of CASA i.e. Current Accounts and Savings Account. The main theme
of the project is implementation of CASA Revival Campaign i.e. to get back those Customers
those who have stopped banking with the Kotak Mahindra Bank and because of which there
accounts have become Dormant. It covers all the aspects related to the CASA and various
features related to the policy of CASA Revival.
The project begins with a brief description of concepts like CASA, CASA Ratio, Customer
Attrition and whole framework of Customer Relationship Management (CRM). The whole
process of CASA Revival is explained at starting of the project stating each and every step.
On the basis of results in depth analysis has been done and various methods or recommendations
to prevent Customer Attrition Rate are also generated for the purpose of retaining the customer
in the Bank. On the basis of processed data Graphical Representation of it is made and also some
ratios like Conversion Ratio and Retention Ratio are calculated. On the basis of these ratios the
final result is generated for the purpose of generating various ways to prevent the Customer
Attrition. Hence, various recommendations are generated which are beneficial for the
organization and could generate the prospective growth for the same.
The whole conclusive part of the Project Report can be summarized as follows:
The concept of CASA i.e. Current Account and Savings Account is great importance for any
Bank; it serves bread and butter for it, so it should be as high as possible.
Any activity or the result of any policy which can affect the CASA ratio can hamper the
growth cycle of the Bank, so such activities should be controlled to some extend and
amendments should be made according to the need of the customer which is the most
important part of business.
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Customer Attrition rate should be least for any organization and should be considered with
great importance.
Customer Relationship Management (CRM) is very important to retain a customer in Bank, it
should be properly managed and maintained according to the requirement and suitability of
the King of the business i.e. Customer.
Any problem of a customer should be treated with great importance and proper steps should
be taken to solve it and prove customer hindrance free services which were actually promised
to him or her.
Continuous updation of customer’s details which include the contact number, address, etc
should be done so that there can be easy contact ability between the customer and the
respective Relationship Officer or Relationship Manger for the purpose of proper Customer
Relationship Management(CRM).
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RECOMMENDATIONS
The project on CASA Revival policy of the Bank is having some problems due to which various
recommendations can be suggested which are as follows:
Appropriate Customer Mapping should be done. Each Relationship Officer and Relationship
Manager should be given a proper list of customers which should be covered in their calling
areas i.e. with which easy accessibility can be possible.
The bank should be a Primary Banker for any customer and for that the bank should come up
with more effective policies that can attract Customers and generate business form them.
Miselling should be avoided in order to gain the customer’s trust which is the main part of
Customer Relationship Management (CRM) which helps to retain the customer as long as
possible.
Timely and Proper information about any changes in the existing policy or some new policy
should be given to the customer for maintaining good relationship with them and avoiding
any future problems.
The Organization should work for Lower Turnover Ratio scenario as more the turnover ratio
more would be problems for the customer to intimate there problems to their Relationship
Officers or Relationship Managers.
Bank should encourage more for more of the Family Clubbing i.e. bank should be holding
the accounts of not a single person but of whole of his/her family members so that there
would be lesser chances of Attrition from customer’s side and better growth prospects.
Improved Customer Services should be encouraged so that customer should feel satisfied
while using the services of the bank and hence lesser percentage of Attrition Ratio should be
there.
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BIBLIOGRAPHY
Zikmund, Research Methodology
Kotak Mahindra Bank Database
Kotler, P, Marketing Management
www.kotak.com
www.rbi.com
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