CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN RETAIL BANKING

PREFACE
The viewing of the marketing in business administration of an organization is a fast growing concept in India. Marketing in any undertaking requires aptitude, skills, e pertise, knowledge and efforts in sales as well as marketing. Marketing is considered to be the most valuable asset of the organization in revenue generation, which is greatly influenced by the performance of its e ecutives. !ll professional post graduates course like M"!#$%&"M envisage for a student to acquire proficiency in academic knowledge as well as its application in practice by way of e posure to the business world. Industrial training is therefore a part of M"!#$%&"M curriculum, which helps in developing analytical and interpreting skills in the students through application of several concepts of management to understand the functioning of industries. This training was conducted in 'otak Mahindra "ank.

INDEX
S.NO. 1 *. -. .. CONTENTS Chapter 1. Chapter *. Chapter -. Chapter .. I!tr"#$%t&"! "' I!#$(tr) C"+pa!) Pr"'&,e I!tr"#$%t&"! t" CRM Re(ear%h Meth"#","/)

Title of the )tudy. *b+ective of the )tudy. )cope of the study Types of ,esearch # Method of conducting research. -imitations of )tudy. 0. 1. 3. 5. 6. 17. 11. .hapter / 0 !nalysis a!# I!terpretat&"! Chapter 1. 2 .omparative !nalysis Chapter 3.2 S4OT A!a,)(&( C"!%,$(&"!. S$//e(t&"! a!# Re%"++e!#at&"!. B&8,&"/raph) A!!e9$re 2 :$e(t&"!!a&re(

INTRODUCTION OF INDUSTR;

4HAT IS BANKING<

"anking in a traditional sense is the business of accepting deposits of money from public for the purpose of lending and investments. These deposits can have a distinct feature of being withdrawal by cheques, which no other financial institution can offer. In addition, banks also offer various other financial services, which includes2 3 Issuing &emand &raft and Travelers .heques .redit .ard .ollection of .heques, "ills of 4 change )afe &eposit -ockers

 Issuing -etters of .redit and -etters of %uarantee )ale and $urchases of 6oreign 4 change .ustodial )ervices Investment and Insurance services The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of this public money is one of the prime responsibilities of any bank. That is why banks are e pected to be prudent in their lending and investment activities. 4very bank has .ompliance department, which is responsible to ensure that all the services offered by the banks and the processes followed are in compliance with the local regulation and the bank7s corporate policies2 "anking ,egulation !ct, 1858 6oreign 4 change Management !ct, 1888 Indian .ontract !ct, 19:( ;egotiable Instrument !ct, 1991 "anks lend money either for productive purposes to individuals, firm corporate etc. or for buying house property, cars and other durable and for investment purposes to individuals and others. <owever banks do not finance any speculative activity. -ending is risk taking= having prudent norms for lending should cover the risk. The depositors of banks are also assured of their money by deploying some percentage of deposits in statutory reserve like )-, and .,,.

BANKING INDUSTR; IN INDIA

/

"anking in India has its origin as early as the >edic period. It is believed that the transition from money lending to banking must have occurred even before Manu. The great <indu ?urist, who has devoted a section of his work to deposits and advances and lay down rules relating to rate of interest. &uring the Mogul period, the indigenous banker played a very important role in lending money and financing foreign trade and commerce. &uring the days of the 4ast India .ompany it was the turn of the agency houses to carry on the banking business. The %eneral "ank of India was the first +oint )tock "ank to be established in the year 1:9@. The others, which followed, were the "ank of <industan and "engal "ank. The bank of <industan is reported to have continued till 18A@ while the other two failed in the meantime. In the first half of the 18th century of 4ast India .ompany establish three banks= The "ank of "engal in 19A8, the "ank of "ombay in 195A and the bank of madras in 1951. These three banks also known as presidency "ank were independent units and functioned well. These three banks were amalgamated on (:th ?anuary 18(1. Bith the passing of the )tate "ank of India !ct in 18// the ,eserve "ank of India !ct 1815. In the wake of the )wadeshi Movement, a number of bank with Indian management were establish in the country namely, $un+ab ;ational "ank -td., "ank of India -td., the .entral "ank of India -td., Indian "ank -td., the "ank of "aroda -td., and the .entral "ank of India -td. *n ?uly 18, 18@8 fourteen ma+or banks of the .ountry were nationalized C in 1/th !pril 189A si more commercial private sector banks were also taken over by the %overnment. Today the commercial banking system in India may be distinguished into2

PUBLIC SECTOR BANKS2

)tate "ank of India C its associate bank called the )tate "ank %roup, (A nationalized banks, ,egional ,ural "anks mainly sponsored by public sector banks *ld generation private bank, ;ew generation private bank, foreign banks in India, )cheduled co0operative bank, non0scheduled banks.

CO2OPERATI=E SECTOR BANKS2

The co0operative sector has been developed in the country to the supplement the >illage moneylender. The co0operative banking sector in India is divided into four components )tate .o0operative "anks, .entral .o0operative "anks, $rimary !griculture .redit )ocieties, -and &evelopment "anks, Drban .o0 operative banks, $rimary !griculture &evelopment "anks, $rimary -and &evelopment "anks, and )tate -and &evelopment "anks.

DE=ELOPMENT BANKS2
Industrial 6inance .orporation of India EI6.IF Industrial &evelopment "ank of India EI&"IF Industrial .redit and Investment .orporation of India EI.I.IF Industrial Investment "ank of India EII"IF )mall Industrial &evelopment "ank of India E)I&"IF ;ational "ank for !griculture and ,ural &evelopment E;!"!,&F 4 port Import "ank of India E4GIMF

NATIONAL HOUSING BANK2

The Indian banking can be broadly categorized into ;ationalized, $rivate "anks C )pecialized "anking Institution. The ,"I !cts as a centralized body, monitoring and discrepancies and short coming in the system. )ince the ;ationalization of "anks in 18@8, the public sector banks have accrued a place of prominence and have since then seen tremendous progress. .onservative
:

banking practices allowed India "anks to be insulated partially form the !sia currency crises, India banks are now quoting all higher valuation when compared to "ank to other !sian countries that have ma+or problems linked to huge ;$!7s and payment defaults. .o0operative banks are nimble footed in approach and armed with efficient branch network focus primarily on the high revenue niche retail segments. The India banking was finally worked up to the competitive dynamic of the new India market and is addressing the relevant issues to take on the multifarious challenges of globalization. $rivate "anks has been fast on the uptake and is reorienting their strategies using the interest as a medium. The Internet has emerged as the new and challenging frontier of marketing. The large dose of liberalization have largely brought this transformation and economic reforms that allowed banks to e plore new business opportunities rather generating revenues from conventional streams i.e. borrowing and lending. The banking in India is highly fragmented with banking unit contributing to almost // of deposits and @AH of advances. Indian nationalized banks continue to be the ma+or lender in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The India banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The ,"I acts as a centralized body monitoring any discrepancies and shortcoming in the system. It is foremost monitoring body in the Indian financial sector. The nationalized banks continue that out of commercial banks operating in India, banks are in the public sector and / are in the private sector.

COMPAN; PROFILE
8

KOTAK MAHINDRA GROUP

KOTAK MAHINDRA GROUP is one of IndiaIs leading financial institutions, offering complete financial solutions that encompass every sphere of life. 6rom commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around ,s.(8AA .rores and employs over 99AAemployees in its various businesses. Bith a presence in :5 cities in India and offices in ;ew Jork, -ondon, &ubai and Mauritius, it provides services to a customer base of over /AAAAA. 'otak Mahindra has international partnerships with %oldman )achs Eone of the worldIs largest investment banks and brokerage firmsF, 6ord .redit Eone of the worldIs largest dedicated automobile financiersF and *ld Mutual Ea large insurance, banking and asset management conglomerateF.

1A

THE >OURNE; SO FAR...

HISTOR; OF GROUP
The 'otak Mahindra %roup was born in 189/ as 'otak .apital Management 6inance -imited. Mr.Dday 'otak, )idney !. !. $into and 'otak C .ompany promoted this company. Industrialists <arish Mahindra and !nand Mahindra took a stake in 189@, and thatIs when the company changed its name to 'otak Mahindra 6inance -imited. )ince then itIs been a steady and confident +ourney to growth and success.
11

189/

The company was incorporated on (1st ;ovember 189/ under the name 'otak .apital Management 6inance -td. The .ompany has been promoted by Mr. Dday ). 'otak, Mr. ).!.! $into and 'otak C .ompany. The company obtained the certificate of commencement of business on 11th 6ebruary 189@ and the 4 isting promoters were +oined by Mr <arish Mahindra and Mr. !nand Mahindra. The companyIs name was changed on 9th !pril 189@ to its present name 'otak Mahindra 6inance -td. 0 The .ompany deals in "ill discounting, leasing and hire purchase, corporate finance, management of fi ed deposit mobilization, financing against securities, money market operations, consumer finance, investment banking and clientsI money management

189@ 189: 188A

'otak Mahindra 6inance -imited starts the activity of "ill &iscounting. 'otak Mahindra 6inance -imited enters the -eases and <ire $urchase market. 1,A9::A ;o. of equity shares subscribed for by the promoters, directors, 1,51,(1A ;o. of equity shares allotted as rights as on (9.1.98. 18,/A,AAA shares issued as bonus E@,/A,AAA shares in prop. 121 as on (8.:.98 and 11,AA,AAA shares in prop. 121 as on (:.(.81F. The !uto 6inance &ivision is started The Investment "anking &ivision is started. Takes over 6I.*M, one of India7s largest financial retail marketing networks. !n application was made to )4"I for approval for setting up a Mutual 6und trust and an asset management company. The newly set up .orporate !dvisory )ervices %roup received several mandates for
1(

1881

advice on mergers and acquisitions and re0structuring. The .ompanyIs newly established 6oreign 4 change ,isk Management )ervice carters to the vast potential demand for price risk management. The .ompany established itself as a ma+or leasing and hire0purchase company and as a source of finance for purchasers of automobiles. 188( 4nters the 6unds )yndication sector. In ?anuary, the .ompany offered and allotted 1/,/A,AAA 0 15H secured partly convertible debentures of ,s 8A each for a total value of ,s 11.8/ crores in the following manner2 EiF (,AA,AAA debentures to promoters, directors, etc. EiiF ::,/AA debentures to employees Eincluding working directorsF#workers on preferential basis EiiiF 1(,:(,/AA debentures to Indian public through prospectus. 0 !dditional 1A,AAA debentures to promoters, directors, etc., 8,/AA debentures to employees and 1,81AAA debentures to Indian public were allotted to retain oversubscription. 0 !s per the terms of debenture issue, a portion of ,s 5/ of each debenture of ,s 8A was to be converted into 1 equity share of ,s 1A each at a premium of ,s 1/ per share as on the date of allotment of the debentures. !ccordingly 1:,9(/AA ;o. of equity shares allotted as on (/th 6ebruary, 188(, being the date of allotment of the debentures. The non0convertible portion of ,s 5/ of each debenture would be redeemed at par in three equal installments of ,s 1/, ,s 1/ and ,s 1/ at the end of the :th, 9th and 8th year respectively from the date of allotment of the debentures. 0 In !pril, the .ompany has raised ,s. 19 crores by issue of .ommercial $aper which has been awarded $1 K rating by .redit ,ating and Information )ervices of India limited E.,I)I-F indicating

11

highest standards of safety. 1881 &uring 6ebruary, the .ompany issued @8,9(,/AA ,ights equity shares of ,s 1A each at a premium of ,s 1/ per share in proportion 121 Eall were taken0upF. !dditional 11,8/A shares were allotted to those who had applied for additional shares. 0 The .ompany issued through a $rospectus 55AAAAA ;o. of equity shares of ,s 1A each for cash at a premium of ,s 15A per share of which the following were reserved for allotment EiF 11AAAA shares to promoters, directors, their relatives etc., EiiF(/AAA shares to 6oreign#Indian 6inancial Institutions Eall were taken upF. *f the remaining /A,AAA shares reserved for allotment on a preferential basis to employees Eonly 15,@AA shares taken upF. !nother ///AAA shares to ;,Is were reserved on non0repatriation basis Eall were taken upF. 0 "alance 1@5AAAA shares, along with 1/,5AA shares not taken up by employeesI, were offered for public subscription. 0 !t the 9th !nnual %eneral Meeting held on (9th )eptember the .ompany has reserved @1((AAA ;o. of equity shares of ,s 1A each for cash to be allotted at such issue price as may be decided by the board to 6oreign Institutional Investors and#or, 6oreign and#or Indian $ension and#or Mutual and#or other 6unds and#or Institutions, "anks, .ompanies, "odies and#or individuals and#or %roups of Individuals. 0 The .ompanyIs newly set up .orporate !dvisory )ervices %roup received several mandates for advice on mergers and acquisitions and re0structuring and some have already been e ecuted with success. 1885 The .ompany entered into a Memorandum of Dnderstanding with '" .urrency !dvisors Inc. D)! to market their 6oreign 4 change 6und

15

Management programme. 0 191,@/,/AA ,ights equity shares issued in prop. 121. 11,9AA ;o. of equity shares forfeited. 0 The .ompany has received the approval of )ecurities and 4 change 188/ "oard of India E)4"IF for setting up a Mutual 6und. "rokerage and &istribution businesses incorporated into a separate company 0 'otak )ecurities. Investment "anking division incorporated into a separate company 0 'otak Mahindra .apital .ompany. The .ompany issued 5AAAAA 0 1:H )ecured ,edeemable ;on0convertible &ebenture of ,s (/AA each including 8@AAA 0 1@H ;.&s reserved for ;,Is#D," Eonly 8/1A taken0upF. Dnsubscribed portion of 8A debentures issued to the public. These are redeemable at par on :.1.(AA1 with an option for early redemption up to a ma imum of /H of the issue amount every year. The .ompany entered into a +oint venture agreement with 6ord .redit International Inc. E6.IF, a subsidiary of 6ord Motor .redit .o., D)!. It was proposed to finance all non 6ord $assenger cars. 188@ 'otak Mahindra .apital company became a subsidiary of the .ompany The !uto 6inance "usiness is hived off into a separate company 0 'otak Mahindra $rimus -imited. 'otak Mahindra takes a significant stake in 6ord .redit 'otak Mahindra -imited, for financing 6ord vehicles. The launch of Matri Information )ervices -imited marks the %roup7s entry into information distribution. The .ompanyIs operations were affected by the liquidity crunch, scarcity of resources, sluggishness in the capital markets and the overall deceleration of economic growth. The .ompany has entered into a M*D with the .hubb .orporation,

1/

;ew ?ersey, D.).!., one of the largest !merican Insurance firms, to develop a ?oint >enture dedicated to the conduct of casuallity and property insurance business in India. The .ompany has invested a sum of about ,s (AA lakhs in Matri Information )ervices private -td. EMatri F, a company formed for providing comprehensive value added information to business and general users. Matri is a wholly owned subsidiary of the company. The .ompany has divested its entire holding of (A,AA,A:A ;o. of equity shares of ,s 1A each of 'otak Mahindra )ecurities -td. E'M)-F and (A,AA,AAA ordinary shares of D) L 1 each of 'otak Mahindra International -td. <amko 6inancial )ervices -td., 'otak Mahindra )ecurities -td., provides of broking services to institutional and corporate clients, 'otak, Mahindra !sset Management .ompany, 'otak Mahindra International -td., an offshore company and 'otak Mahindra ED'F -td., are all subsidiaries of the .ompany. The .ompanyIs public issue of 5AAAAA 1@01:H )ecured ,edeemable ;on0.onvertible &ebentures of ,s.(/AA each for cash at par aggregating ,s.1AA crores in ?anuary. 188: In recognition of the .ompanyIs prudent funds management, .,I)Ihas assigned a rating of !!K to the .ompanyIs public issue of ;on0 .onvertible &ebentures and $1K for all short term borrowings up to ,s.1/AAA lakes.

1@

'otak Mahindra 6inance -td. has decided to venture into health insurance business. 'otak Mahindra 6inance has launched a new consumer finance product called 'otak Mahindra '0>alue. <amko is a 1AA per cent subsidiary of 'M6- and investment in it was structured to avoid limitations of )ection 1:( under the .ompanies !ct. The company has diversified into various activities for which it has set up subsidiaries including broking, capital market activities, auto finance, etc 1889 4nters the Mutual 6und market with the launch of 'otak Mahindra !sset Management .ompany. 'otak Mahindra !sset Management .ompany -imited E'M!M.-F launched its mutual fund schemes in &ecember. The .ompany it would launch its mutual fund with two schemes 00 '%ilt Dnit )cheme and '1A Dnit )cheme. 'otak Mahindra 6inance is a +oint venture with %oldman )achs. 1888

The M6!!I Epronounced M6 double !IF rating assigned to the fi ed deposit programme of 6ord .redit 'otak Mahindra E6.'MF has been reaffirmed. the allotment to the .ompany of /A,AAA equity shares of ,s. 1A each by 'otak Mahindra Trustee .ompany -imited E'MT.-F on 1(th May

(AAA

'otak Mahindra ties up with *ld Mutual $lc. for the -ife Insurance business. 'otak )ecurities launches kotakstreet.com 0 its on0line broking site. 6ormal commencement of private equity activity through setting up of 'otak Mahindra >enture .apital 6und. 'otak Mahindra 6inance -td
1:

E'M6-F and .hubb .orporation of the D) have decided to call off their +oint venture for entering the general insurance business in India. The .ompany has decided to set up a venture capital fund with an initial corpus of ,s. 1AA crore. 'M6- has set up a new asset reconstruction division to offer recovery management services to players in the financial services industry. The .ompany Issue of 81,9(,/AA ;o. of 4quity )hares of ,s. 1A#0 each for cash at a premium of ,s. 8A#0 per share aggregating ,s. 81,9(,/A,AAA to the 4quity )hareholders of the .ompany on ,ights basis in the ratio of one equity share for every our equity shares held on 1/th 6ebruary. Mr. '.'. )heth has resigned effective from May 9. 'otak )ecurities an affiliate of 'otak Mahindra 6inance -td., has launched electronic broking services for retail investors. 'otak Mahindra 6inance is in talks with foreign insurers for a +oint venture in the life insurance business. The .ompany has proposed to start0up capital of ,s 1/A crore in its life insurance +oint venture with *ld Mutual, the D' based financial services group. The .ompany proposes to make the necessary applications to the ,"I and the Insurance ,egulatory and &evelopment !uthority for entering the life insurance business. *M 'otak Mahindra -ife Insurance .ompany, the recently formed +oint venture company of 'otak Mahindra 6inance and *ld Mutual $lc has filed its application for approve of life insurance license on 1st )eptember.

19

'otak Mahindra 6inance -td has been assigned !nd !!! rating Eindicating highest credit qualityF for its ,s./1A million medium term borrowing programme. 6itch India has assigned a rating of Ind !!! to the ,s /10crore medium term borrowing program of 'otak Mahindra 6inance -td for high credit quality and negligible risk factor. (AA1 The .ompany recommended a swap ratio of (/ shares of 'M6- for every share of $annier Trading which has a :/ per cent equity stake in 'otak )ecurities. The "harath $etroleum .orporation -td E"$.-F has decided to part ways with 'otak Mahindra, one of the leading domestic financial (AA( services company, in its convenient store venture In C *ut. Matri sold to 6riday .orporation -aunches Insurance )ervices. 'M6-Is business has seen a fast growth with the total disbursement of commercial vehicle loan of the company in the last fiscal was tuned to ,s. (/Acr. ,"I has given in0principle approval to 'otak Mahindra 6inance -td to convert itself into a bank, thereby becoming the first ever non0banking finance company converted into a bank. Mr Dday 'otak says, there wonIt be any fresh capital infusion in the bank in the near future. 'M6- informed ")4 the 6IT.< ratings assigned2 6i ed &eposit $rogramme 0 Ind !!! ;on0.onvertible &ebenture 0 Ind !!! Mr.!+ay )ondhi has been appointed as the !dditional &irector of 'otak Mahindra 6inance -td. 'otal Mahindra 6inance .ompany has shortlisted i0fle solutions
18

I6le icubeI and IInfosysI, I6innacleI for its core banking solutions. 'M6- has raised :@.((cr by selling securitized commercial vehicle loans to investors. .,I)I- has assigned N!!! E)*FI rating for ,s.91cr securitization $rogramme of 'otak Mahindra 6inance -td. Mr.Dday 'otak has been appointed as the 4 ecutive >ice .hairman and Managing &irector of the company. 'otak Mahindra 6inance -td has mobilized ,s.1A598cr , asset0backed securitization of commercial vehicle receivables. "usiness )tandard and "usiness )tandard digital have ceased to be the subsidiaries of 'otak Mahindra 6inance -td. Mr.. ?ayaram and Mr. &ipak %upta are appointed as whole time &irectors on the "oard of 'otak Mahindra 6inance -td. (AA1

6inance limited converts to a commercial bank0the first Indian company to do so. Madison .ommunications has won the ,s.1Acr 'otak MahindraIs media !*, account. The proposal of changing the name from I'otak Mahindra 6inance -tdI to I'otak Mahindra "ank -tdI and the proposal to change the !uthorized capital from 1AA,AA,AA,AAA divided into 1A,AA,AA,AAA equity shares of ,s.1A each has been approved by the company shareholders. ,"I has granted license to 'otak Mahindra 6inance -td to embark on its banking business. * C M has got the creative account of 'otak Mahindra "ank, and has said to be working professionally. 'otak Mahindra "ank has received a lot of interest from portfolio
(A

investors, private equity investors and potential strategic investors. 'otak Mahindra "ank has entered into an !TM sharing agreement with DTI "ank, which would allow 'M"Is customer free access to around 9AA !TMIs. 'otak Mahindra "ank has started its operations in ;ew &elhi by inaugurating a branch .annaught place office. &r.)hankar !charya has been appointed as the !dditional &irector to the board of the bank. The "oard of 'otak Mahindra "ank -td accepts the resignation of Mr.).!.! $into and Mr.M., $un+a as the &irectors of the "ank. 'otak Mahindra Investment .o -td. $.. a subsidiary of 'otak Mahindra .apital .ompany has constituted itself from a private company to a public limited co. and has changed its name to I%lobal Investment *pportunities 6und -tdI. 'otak Mahindra bank has unveiled several home finance products options which includes <ome loan, <ome equity -oan, <ome loan transfer and <ome improvement loans. 'otak Mahindra "ank launches online remittance services called, 6D;&) to <*M4 for ;on0resident Indians. In response to the repo rate cut by the ,"I, the 'otak Mahindra "ank has reduced its lending rates in home loans. 'otak Mahindra "ank -imited has informed that the equity shares of the "ank have been delisted from the &elhi )tock 4 change !ssociation -td w.e.f &ecember 1A, (AA1. (AA5 -aunches India growth fund, a private equity fund. 'otak Mahindra "ank -imited has informed that the "ankIs equity shares will be

(1

delisted from The )tock 4 change, !hmadabad with effect from ?anuary (A, (AA5. 'otak Mahindra "ank sets up branch in )urat 'otak Mahindra Mutual 6und has launched 'otak *pportunities, an open0ended equity growth scheme 'otak Mahindra "ank inks pact with ,euters (AA/ 'otak group realigns +oint venture in ford credit. "uys 'otak Mahindra $rime Eformerly known as 'M $rimus -imitedF and sells 6ord .redit 'otak Mahindra -aunches a real estate fund. 'otak Mahindra "ank purchases stressed assets worth ,s 1,AAA cr 'otak "ank +oin hands with Indian;%*s.com 'otak Mahindra "ank invests ,s (/ cr in "6B

(AA@

"ought the (/H stake held by %oldman )achs in 'otak Mahindra .apital and 'otak )ecurities. 'otak Mahindra +oins hand <&6. "ank to share !TMs. 'otak Mahindra to buy out %oldman )achsI stake in ?>s 'otak Mahindra "ank sets up branch in >alsad 'otak Mahindra subsidiary acquires 6ord .reditIs auto portfolio

(AA:

'otak Mahindra "ank -aunches <ome "anking, Improves "anking 4 perience. 'otak Mahindra "ank -aunches <ome "anking, Improves "anking 4 perience 'otak Mahindra "ank -aunches )alary ( Bealth

((

'otak Mahindra "ank -aunches 'otak %old &ebit .ard 'otak Mahindra "ank Ties up with Ta sha .com, )implifies 6iling of IT ,eturns (AA9 'otak Mahindra !sset Management .ompany -imited E'M!M.-F launched its mutual fund schemes in &ecember. The .ompany it would launch its mutual fund with two schemes 00 '%ilt Dnit )cheme and '1A Dnit )cheme. 'otak Mahindra 6inance is a +oint venture with %oldman )achs. 1888 The M6!!I Epronounced M6 double !IF rating assigned to the fi ed deposit programmes of 6ord .redit 'otak Mahindra E6.'MF has been reaffirmed. Bith the allotment to the .ompany of /A,AAA equity shares of ,s. 1A each by 'otak Mahindra Trustee .ompany -imited E'MT.-F on 1(th May. 0 'otak Mahindra "ank launched credit cards for its customers. (AA8 'otak entered into tie up with ,ussiaIs top investment bank 'otak Mahindra "ank Bins IT Team of the Jear for 1rd .onsecutive Time at the "anking Technology !wards (AA9

(1

CORPORATE IDENTIT;
A! &#ea &! the h&/he(t (e!(e "' a ?"r# %a!!"t 8e %"!@e)e#A 8$t a ()+8", %a! 8eB

The symbol of the Infinite 'a reflects our global Indian personality. The 'a is uniquely while its curve forms the infinity sign, which is universal. *ne of the basic tenets of economics is that man7s needs are unlimited. The Infinite 'a symbolizes that we have an infinite number of ways to meet those needs.

(5

=ISION STATEMENT

The /,"8a, I!#&a! '&!a!%&a, (er@&%e( 8ra!#B our customers will en+oy the benefits of dealing with a global Indian brand that best understand their needs and delivers customized pragmatic solutions across multiple platforms. Be will be a world0class Indian financial services group. *ur technology and best practices will be benchmarked along international lines while our understanding of customers will be uniquely Indian. Be will be more than a repository of our customers7 savings. Be, the group, will be a single window to every financial service in costumer7s universe. The +"(t pre'erre# e+p,")er &! '&!a!%&a, (er@&%e(B ! culture of empowerment and a spirit of enterprise attracts bright minds with an entrepreneurial streak to +oin us and stay with us. Borking with a home0 grown, professionally0managed company, which has partnerships with international leader, gives our people a perspective that is universal as well as unique. The +"(t tr$(te# '&!a!%&a, (er@&%e( %"+pa!)B Be will create an ethos of trust across all our constituents. !dhering to high standards of compliance and cooperate governance will be an integral part of building trust.

(/

 =a,$e %reat&"!B >alue creation rather than size alone will be our business driver

(@

KE; GROUP BUSINESSESB

Kotak Mahindra Capital Ltd

Kotak Mahindra Prime Ltd

Kotak Securitie s Ltd

Key Group Businesses

Kotak Mahindra Bank Ltd

Kotak Old Mutual Life Insurance

Kotak Mahindra AMC Ltd.

(:

KE; GROUP COMPANIES AND THEIR BUSINESSESB

K"taC Mah&!#ra Ba!C Lt#. is the 'otak Mahindra %roup7s flagship company. 'otak Mahindra 6inance -td that was established in 189/, was converted into a bank 0 'otak Mahindra "ank -td in March (AA1 thus becoming the first Indian finance company to be converted into a "ank. It7s banking operations offers a central platform for customer relationships across the group7s various businesses. The bank has a presence in the .ommercial >ehicles, ,etail 6inance, .orporate "anking and Treasury and has recently entered the <ousing 6inance segment K"taC Mah&!#ra Cap&ta, C"+pa!) 'otak Mahindra .apital .ompany -imited E'M..F, IndiaIs premier Investment "ank and a $rimary &ealer E$&F approved by the ,"I, is a strategic +oint venture between 'otak Mahindra "ank -imited and the %oldman )achs %roup, --$. 'M..Is core business areas include 4quity Issuances, Mergers C !cquisitions, )tructured 6inance and !dvisory )ervices, 6i ed Income )ecurities and $rincipal "usiness. K"taC Se%$r&t&e( Lt#., a strategic +oint venture between 'otak Mahindra "ank -imited and the %oldman )achs %roup, --$, is one of the India7s largest brokerage and securities distribution house. *ver the years, 'otak )ecurities has been one of the leading investment broking houses catering to the needs of both institutional and retails investor categories with presence all over the country through franchisees and coordinators. 'otak )treet 0 the retail arm of 'otak )ecurities -td., offers online and offline services well0 researched e pertise and financial products to the retail investors.

(9

K"taC Mah&!#ra Pr&+$( L&+&te# E'M$F is a +oint venture between 'otak Mahindra "ank -td and 6ord .redit International Inc., ED)!F formed to finance all 6ord passenger vehicles. 'M$ is one of the country7s leading players in car finance and is focused to financing and supporting automotive and automotive related manufacturers, dealers and retail customers.

K"taC Mah&!#ra A((et Ma!a/e+e!t C"+pa!) E'M!M.F, a subsidiary of 'otak Mahindra "ank, is the asset manager for 'otak Mahindra Mutual 6und E'MM6F. 'MM6 manages funds in e cess of ,s. 5AAA crores and offers schemes catering to investors with varying risk0 return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.

K"taC Mah&!#ra O,# M$t$a, L&'e I!($ra!%e L&+&te# is a +oint venture between 'otak Mahindra "ank -td. and *ld Mutual plc. 'otak -ife Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.

(8

A8"$t K"taC Mah&!#ra Ba!C

K"taC Mah&!#ra Ba!C is the flagship company of the group. The company was incorporated in 189/ and over the years has spread its business into the entire spectrum of financial services, either directly or through subsidiaries Creat&!/ 8a!C&!/ h&(t"r) 4stablished in 1895, The 'otak Mahindra group has long been one of IndiaIs most reputed financial organizations. In 6ebruary (AA1, 'otak Mahindra 6inance -td, the groupIs flagship company was given the license to carry on banking business by the ,eserve "ank of India E,"IF. This approval creates banking history since 'otak Mahindra 6inance -td. is the first 6inance company in India to be converted to a bank. The %"+p,ete 8a!C !t 'otak Mahindra "ank, we address the entire spectrum of financial needs for individuals and corporate. 6rom ,etail 6inance to 4quities, Mutual 6unds to -ife Insurance and Investment "anking, we have the products, the e perience, the infrastructure and most importantly the commitment to deliver pragmatic, end0to0end solutions that really work.
1A

! license authorizing the bank to carry on banking business has been obtained from the ,eserve "ank of India in terms of )ection (( if the "anking ,egulation !ct, 1858. It must be distinctly understood, however, that in issuing the license, the ,eserve "ank of India does not undertake any responsibility for the financial soundness of the bank or the correctness of any of the statements made or opinion e pressed in this connection.

11

MAIN RETAIL BANKING SER=ICESB

Dep"(&t( )avings !ccount .urrent !ccount Term &eposits

I!@e(t+e!t Ser@&%e( &emat Mutual 6unds "anc assurance

C"!@e!&e!%e Ba!C&!/ ;et "anking $hone "anking <ome "anking !TM ;etwork %lobal &ebit .ard Mobile "anking C !lerts

L"a!( $ersonal -oans

1(

 <ome 6inance

11

INTRODUCTION TO C$(t"+er Re,at&"!(h&p Ma!a/e+e!t &! I!#&a! Reta&, Ba!C&!/

15

CUSTOMER RELATIONSHIP MANAGEMENT

C$(t"+er re,at&"!(h&p +a!a/e+e!t DCRMF is developing into a ma+or element of corporate strategy for many organizations. .,M, also known by other terms such as relationship marketing and customer management, is concerned with creation, development and enhancement of individualized customer relationships with carefully targeted customers and customer groups resulting in ma imizing their customer life time value. Industry leaders are now addressing how to transform their approach to customer management. ! new form of cross0functional marketing, i.e. .,M is replacing narrow functionally based traditional marketing. The traditional approach marketing has been continuously questioned in recent years. This approach emphasized on the management of the key marketing mi elements such as product, price, promotion, and place within the functional conte t of the marketing department. The new .,M approach, while recognizing these key elements still need to be addressed, reflect the need to create an integrated cross functional which focus on marketing 3 one which emphasizes keeping as well as winning customers. Thus the focus is shifting from customer acquisition to customer retention and ensuring the appropriate amount of time, money and managerial resources are directed towards these tasks.

1/

The adoption of .,M is being filled by a recognition that long0term relationship with customers is one of the most important assets of the organization and that information 3 enabled systems must be developed that will give them Ocustomer ownershipP. )uccessful ownership will create competitive advantage, which result in improved customer retention and profitability for the company.

CRM a! "@er@&e?
"usinesses today are continually looking for ways to achieve a competitive advantage. Margins are shrinking, competition is increasing and industries are consolidating. Bhile customer e pectation intensify for quality, service and delivery, businesses are reducing staff and the same time searching for ways to arm employees with information to make better decisions and innovate. .ustomer is the most important asset in businesses. .onsequently, applying some management resources to improve the customer7s e perience and ma imize the profit, potential of that asset is important. The concept of .,M as a strategy reflects the business process and technology that can be combined to optimize revenue, profitability and customer royalty. The .,M market is evolving rapidly and is one of the fastest growing market segments in application software ..,M has captured the mind share of senior e ecutives across a variety of industries. Bith a rapid growth of 40customer applications and the increasing need to sell to and support customers through Internet, .,M solutions must provide a focal point for all the customers0 facing activities across the channels.

1@

4hat &( C$(t"+er Re,at&"!(h&p Ma!a/e+e!t<

It is a comprehensive approach that provides seamless coordination between sales, customer service, marketing and field support and other customer touching functions. .,M integrates people, process and technology to ma imize relationship with all customers including e0 customers, distribution channels and suppliers. It is customer focused business strategy designed to optimize revenue, profitability and customer royalty. "y implementing a .,M strategy, an organization can improve the business processes and technology solutions around selling and marketing and servicing functions across all customer touch 3 Efor e ample2 web, e0mail, phone, fa , in0 personF. ! primary ob+ective of .,M is to provide the entire organization with a complete, 1@A 3degree view of the customer, no matter where the information resides or where the customer touch point occurred. Today, many businesses manage different customer relationships with multiple information systems, which weaken customer service and ultimate reduce total sales potential. To realize the benefits of .,M, it is important to have an integrated solution across all customers information systems, tying together the front and front offices for a complete view of the customers in order to serve them better.

1:

4h) &( &t !e%e((ar)<

Many companies are turning to customer relationship management systems to better understand customer wants and needs. .,M applications often used in combination with data warehousing e0 commerce application and call0center, which allows companies to assess information about customers buying history, preferences, complaints and other data so they can better anticipate what customer will want. The goal is to instill greater customer loyalty. *ther benefits include2 The ability to provide faster response to customer inquiries. Increase efficiency through automation. <aving a deeper knowledge of customers. %etting more marketing of cross selling opportunities. Identifying the most profitable customers. ,eceiving the customer feedback that leads to new and improved product and services. &oing *ne to *ne marketing.

4H; NO4<
Bhat makes .,M appropriate for today7s environmentQ Bhile there are many number of environmental factors and business advancement that impact and enable the real importance for .,M in today7s environment is competitive and differentiation. .,M promises to be competitive and differentiation in today7s environment.

19

*rganization today is finding it difficult to compete on the basis of product. Technology advancement has enabled the near immediate replication of product features and functions. It is +ust a matter of weeks between a product launch and saturation of the market. ?ust think about it, are there many products out there that are truly uniqueQ $rice, which has traditionally been another basis of competitive differentiation, is no longer a means for many to compete. .omple channel networks have caused parity pricing. $romotion strategies have similarly lessened as a means of differentiation. .lubs abound, special offer are the norm, and sales are continual. $lace of distribution has likewise become less influential in the success or failure of a business. The Internet has created an avenue for even the smallest business to compete. Bhile all these factors are still important, none of them can alone support the success of most business. .,M 3the ability to provide a more meaningful sales and service e perience promises to be means of differentiating, of providing customers with a reason to frequent your business rather than that of your competitors. *wnership of customer relationship provides e ponentially greater rewards than differences in product, price, promotion or place of distribution could ever offer. !ll of these factors can even be mitigated if you can serve as the one stop provider that can identify. Ruantify, and service customer7s need.

18

I+p,e+e!t&!/ CRM
If .,M involves optimizing product, price, place of distribution, promotion, sales and service, why are so many companies strugglingQ <asn7t anyone really mastered the art and science of .,M, and if not, why is it so difficultQ .,M is difficult because it is an enterprise0wide initiative. .,M is not a technology initiative. Many have confused .,M as a technology initiative, and assigned the .,M implementation pro+ect to their I.) or I.T group. .,M conferences often equates to technology e hibits and demonstration. Technology is needed in order to implement .,M, particularly the customization part but technology is not the driver of .,M, or the solution to successful .,M implementation .,M is not e clusively a sales initiative. )imilar to marketing, .,M is often lodged within the sales department. The sales force, after all, is e tremely close to their customers, understanding their needs and wants, and trying to fulfill them. )ales, however, is +ust one functional area that can benefit from .,M, and that is necessary for effective .,M. .,M is not e clusively a marketing initiative. Many organizations have merely equated .,M with customer0focused marketing, or data0 driven#database marketing. .,M requires marketing e pertise. "ut .,M is not strictly a marketing initiative. .,M is not e clusively a service initiative. !s with sales and marketing, customer service is one functional aspect of successful .,M implementation. "ut customer service is not the sole driver of the process.
5A

 .,M involves marketing, sales, service and technology, as well as the other inner workings of an organization. Thus it is properly described as an enterprise0wide initiative. It involves all the areas of the organization and all the functions of the organization and it requires all areas of the organization to be working together in harmony. .,M requires all areas of the organization to not only e ist in harmony, but to be working toward the common goal of stronger relationships.

IMPORTANCE OF CRM
=a,$e "' CRM t" 8$(&!e((
! .,M strategy is designed to increase revenue and profitability by attracting new customers, growing customer business, increasing customer satisfaction and loyalty, enabling more efficient business processes and utilizing lower cost technologies. The primary goal of .,M is higher revenue, not cutting costs. ! .,M solution improves sales and marketing efforts and enables organizations to provide superior service to customers. ;ew customers are gained, and e isting customers are retained and buy more in greater quantity. !nd customer7s benefits are receiving superior customer service and getting the products and services they want, when they want them. !n enterprise that does not have .,M strategy or use .,M applications is at a competitive disadvantage. "efore engaging on a mission to implement a .,M strategy, it is critical to determine what the specific ob+ectives are and how to measure the return on investment.
51

There are sobering statistics that over one0half of .,M implementations PfailP, primarily due to lack of consensus on agreed 3upon and more importantly, measurable goals. Bhile ob+ectives can address specific points of poor performance0for e amples low sales performance or customer satisfaction scores0it is important that they also address supporting the entire customer life cycle.

CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING

Ba!C( Be%"+e C$(t"+er2Ce!tr&%
The post0liberalized banking sector in India has been witnessing spectacular changes. The ma+or reasons for the recent radical changes in banking industry7s portfolio are competition, consolidation, information technology and the need to be customer0centric. "anks could improve the profitability by adopting strategies like market segmentation, innovation, price bundling and relationship. Technology has a ma+or role to play in retail banking, but its role is complementary to customer service initiatives. &ue to increased financial market products like commercial paper and variety of financial instruments, big corporate clientele of several commercial banks have shifted their loyalty, and have been raising resources from the market directly and commercial banks have become more retail customer0centric by

5(

offering wide range of services. "anks have identified new customer segments like students, workingwomen, and high rich net worthy individuals.

CUSTOMER RELATIONSHIP PROFITABILIT;

,egulated era has given assured profits to banks, but in the post deregulation period as margins are falling down substantially, banks are concentrating on customer relationships. "anking services can be divided into three categories2 core services, facilitating services and supporting services. .ore service is the reason for being in the market. 6acilitating services are needed so that the core service can be used, and supporting services e actly discriminates the service package from the services of competitors. .ustomer relationship is the base on which the structure of retail banking will evolve. The cost to develop customer relationship is always higher than the revenue, "ut when the relationship grows new demands will appear and then the incremental revenue would be higher than incremental costs. The cost associated with building up of the relationship is huge. They are advertising costs, price incentives, set up costs for accounts and service costs etc. .ustomer service delivery is vital for the success of banking operations. This is not possible only through technology. $rocess consistency within and across service channels is paramount. "anks are increasingly making investment in a single type of process, rather investing in asset of processes that depends on human resource policies.

51

55

4h" are HNI C$(t"+er(<

They are <igh net worth individual customer. They are the ma+or targets for private bankers. "ank provides premium class facilities to these clients and tries to cater their special needs related to financial and non0financial in nature. They are high profile customers. They have income of above ,s.1A lakhs per annum. The customer who can maintain at least a very high amount in their accounts. "ank tries to maintain long0term relationship with these clients. <;I customers have a ,elationship Manager

5/

H"? t" appr"a%h HNI C$(t"+er(B

!pproaching to prospective customer is very important for any organization. If banks rightly approach customer then a long0term relation can be e pected. 6ollowings are the steps how a bank approached to <;I customers. DATA COLLECTIONB ;ormally banks maintain their data bank, which is collected from various sources like .redit .ard holders, &ifferent !ccount <older7s $rimary data, Jellow pages, &irectories. TELE CALLINGB *nce the data is collected then the tele callers call upon to these contacts and make the clients aware about various facilities provided by the banks. If the clients show their inclination then a appointment is fi ed with these clients and the ,elationship managers visit the clients. ROLE OF RELATIONSHIP MANAGERB This appointment is called as a -4!&. This lead is transferred to the relationship manager and the client is approached personally. ,elationship manager e plain the facilities provided and take note to the clients7 additional needs which can also be fulfilled by their services. If the client is convinced the lead converts in the customer form. CORPORATE BANKINGB ,elationship manager analyses the requirements of the customers and provide the best0suited product. ,elationship manager e plains the various investment options available in the market and give the customer the opportunity to select the option, which is suitable to him. PORTFOLIO MANAGEMENTB If the customer has invested then the role of the manager is to design his portfolio keeping in mind the risk and return
5@

factors. $ortfolio manager provide these customer the requisite information about the investment opportunities available in the market according to the profile of the customer. HANDLING :UERIESB 6requent services and time to time updating of the market circumstances are shared with these customers. The relationship manager with the help of other officers clarifies their doubts and queries are handled with a special care.

HNI CUSTOMERS

>.'.I Industry !rea. %ems and ?ewellery Industry. "uilders E,eal 4stateF

)uspects

$rospects

6irst Time .ustomers

5:

Mainly my work was to deal with <;I customers and to find out the interested potential customers for opening the account in 'M"-.I had convinced them to build a new and healthy relationship by opening the account. Instead of covering all the areas, I have decided to cover ( important sectors2 %em and ?ewellery Industry "uilders Industry E,eal 4stateF -ocal "usinessmen I have selected the first two sectors, as they are the booming sectors of market. These two segments are my suspects. )uspects are those persons who might buy the product and who will be ready to open the account in 'M"-. Then I have determined the most likely prospects from these suspects through telecalling and e plaining about the features of account. #prospects are those persons who are interested in opening the account. "y opening the account and building relationship, they have become the first0time customers. These three steps can be referred as customer development $rocess, how you are creating the relationship with customers.

59

C$rre!t A%%"$!t

58

CURRENT ACCOUNT "asically a current account is opened for artificially created entity. This artificially created entity can be a firm, sole proprietorship, association, partnership or anything else. ;o interest is paid on the current account. The bank charges some nominal amount for the transaction that takes place. T"",( '"r "pe!&!/ "' the C$rre!t a%%"$!t( 4a,C &!B 2 There was a huge number of walk in customers in 'M"-, we use to open their current accounts Re'ere!%e(B 2 ,eferences were being collected from the leads which we were having and from other sources like .hartered !ccountants, ,elatives, 6riends etc. C",# Ca,,(B 2 This refers to the telephonic call, which we use to make= we use to take appointment before approaching the person. H"t %a,,(B 2 This refers to the direct face0to0face calls, which we use to make without taking any prior appointments. Data8a(e(B 2 The various databases provided by the 'M"- itself, which includes directories, yellow pages, club directories, etc. Pr"%e#$re "' "pe!&!/ "' the a%%"$!t &( a( '",,"?( $reparing the proposal Meeting to the financial advisor of that office and giving him the proposal, telling him the benefits, which the firm will be getting after opening its account in <)". bank. )eeking permission of opening of account. Meeting to the owner of the firm#company

/A

 6illing up the forms and completing the necessary &ocumentation. KMBL a!# C$rre!t A%%"$!t <)". "ank has various current accounts to match different needs of the businessman. !ll these account are designed to suit the various need of the businessman. T)pe( "' C$rre!t A%%"$!t at KMBL 'otak 4dge .urrent !ccount 'otak $ro .urrent !ccount 'otak !ce .urrent !ccount KMBL a!# Sa@&!/( A%%"$!t 'otak 4dge .urrent !ccount 'otak $ro .urrent !ccount 'otak !ce .urrent !ccount

/1

K"taC E#/e C$rre!t A%%"$!t Feat$re( Attra%t&@e Ret$r!( B$(&!e(( A#@a!ta/e( C"!@e!&e!%e Ba!C&!/.

4veryone needs a well0equipped bank account to keep pace with the business endeavors. 'otak Mahindra "ank offers the 'otak 4dge .urrent !ccount, armed with 'otak (0Bay )weep and entire gamut of banking privileges, providing the e tra edge to get ahead. The feature rich 'otak 4dge .urrent !ccount is the ideal way to make money work harder.

ATTRACTI=E RETURNSB 'otak 4dge .urrent !ccount combines liquidity of a .urrent account with the attractive returns of a Term &eposits through the unique 'otak (0Bay )weep. KOTAK AD=ANTAGES 4 perience the Nedge7 of business gains while banking through a host of advantages offered by 'otak 4dge .urrent !ccount. Free De+a!# Dra't( !vail &emand &rafts, free of cost, payable at any of the branch locations, +ust by calling $hone "anking services. There is no limit to the number#value of &emand &rafts drawn by the customer at these locations

/(

Free H"+e Ba!C&!/ 6or free cash#demand draft delivery, dial phone banking service and en+oy time saving banking e perience from the comfort of home or office. The customer can also use the facility for free cash#cheque pickup. Free At par CheE$e( 'otak Mahindra "ank7s !t0par cheques are treated as Nlocal clearing7 cheques across select locations in the country. The !t0par cheque facility comes to the customer free of charge. The customer can now save && making charges while en+oying the convenience of a cheque Free CheE$e C",,e%t&"!( *utstation cheques, drawn on any of the branch locations, would be collected Nfree of charge7 for the account holder. *nly a nominal charge is levied for non0branch location. Free E,e%tr"!&% F$!# Tra!('er Transfer funds to third party accounts in other banks, without drawing a &emand &raft or a cheque, by using 4lectronic Transfer facility. Bith this facility, the accountholder can save on &emand &raft making#couriering charges and also transfer funds faster. O@er#ra't a/a&!(t Ter+ Dep"(&t !s a 'otak 4dge .urrent accountholder, you can avail an overdraft against Term &eposit held with 'M"-. This facility helps effectively tackle short0 term cash flow problems and since the Term &eposits remains intact, the accountholder continue to earn interest on the investment.

/1

CON=ENIENCE BANKING ! host of convenience banking facilities allows the accountholder to access account anytime, anywhere. G,"8a, De8&t Car# !ccess the account free of cost at 1AAAK 'otak Mahindra "ank and <&6. "ank !TMs by using the >I)! %lobal &ebit .ard. The accountholder can also use &ebit .ard at all >I)! affiliated merchant establishments and !TMs worldwide. Ph"!e Ba!C&!/ &ial (5 hour Toll 6ree number 19AA 11@A(( E;orth IndiaF *, E,est of IndiaF from anywhere and customer .are *fficer will help instantly with all banking requirements. Net Ba!C&!/ ?ust log on to Owww.kotak.comP to access ;et banking facility. Take advantage of the Internet to bank from home, office or anywhere in the world at a time of convenience.

/5

At2H"+e Ser@&%e( This service enables the accountholder to make Dtility "ill payments like electricity, telephone and mobile phone bills and also get document delivery and pickup from the bank. M"8&,e Ba!C&!/ Dse this service to access bank account anywhere, anytime. It is quick and easy, available to the accountholder (5G: and it7s absolutely free. The accountholder don7t have to pay any charge to avail this service. The account holder can use Mobile "anking to check account balance, last 1 transactions details, issued cheque status and request a cheque book. The customer can use !lerts )ervice to get !lerts by )M) and#or email whenever the balance falls below the !verage Ruarterly "alance or a )tanding Instruction set by the account holder fails. E,&/&8&,&t) Cr&ter&a The(e %$rre!t a%%"$!t( are "''ere# t" S",e Pr"pr&et"r(h&p(A Part!er(h&p( a!# Pr&@ate L&+&te# C"+pa!&e(. To be eligible 4dge !ccount customers need to maintain a minimum average quarterly balance of ,s.(/AAA. ;on0maintenance of this balance invites a fee of ,s.:/A per quarter. D"%$+e!tat&"! Cr&ter&a A%%"$!t Ope!&!/ ReE$&re+e!t(2 .ompleted !ccount *pening 6orm $assport size photograph of every signatory duly signed

//

 $!; card !ddress $roof document Identity card

A##&t&"!a, #"%$+e!t( reE$&re#B Part!er(h&p(B $artnership &eed L&+&te# C"+pa!)B Memorandum and !rticles, "oard ,esolution,

/@

K"taC Pr" C$rre!t A%%"$!t

Feat$re( Attra%t&@e Ret$r!( B$(&!e(( A#@a!ta/e( Pr" Pr&@&,e/e( C"!@e!&e!%e Ba!C&!/. 4veryone needs a well0equipped bank account to keep pace with the business endeavors. 'otak Mahindra "ank offers the 'otak $ro .urrent !ccount, armed with 'otak (0Bay )weep and entire gamut of banking privileges and Nuser friendly7 .onvenience "anking facilities. The feature rich 'otak $ro .urrent !ccount is the ideal way to make money work harder. ATTRACTI=E RETURNSB 'otak $ro .urrent !ccount combines liquidity of a .urrent account with the attractive returns of a Term &eposits through the unique 'otak (0Bay )weep. BUSINESS AD=ANTAGES The host of features offered by 'otak $ro .urrent !ccount makes money to work while offering .onvenient "anking e perience. Free De+a!# Dra't( !vail &emand &rafts, free of cost, payable at any of the branch locations, +ust by calling $hone "anking services. There is no limit to the number#value of &emand &rafts drawn by the customer at these locations. Bhat7s more, the customer can avail free &&s upto a pre0specified limit, at non0branch locations too.

/:

Free CheE$e C",,e%t&"!( *utstation cheques, drawn on any of the branch locations, would be collected Nfree of charge7 for the account holder. *nly a nominal charge is levied for non0branch location. Free H"+e Ba!C&!/ 6or free cash#demand draft delivery, dial phone banking service and en+oy time saving banking e perience from the comfort of home or office. The customer can also use the facility for free cash#cheque pickup. Free At par CheE$e( 'otak Mahindra "ank7s !t0par cheques are treated as Nlocal clearing7 cheques across select locations in the country. The !t0par cheque facility comes to the customer free of charge. The customer can now save && making charges while en+oying the convenience of a cheque. Free E,e%tr"!&% F$!# Tra!('er Transfer funds to third party accounts in other banks, without drawing a &emand &raft or a cheque, by using 4lectronic Transfer facility. Bith this facility, the accountholder can save on &emand &raft making#couriering charges and also transfer funds faster. PRO PRI=ILAGE 'otak $ro )avings account comes with special privileges that provide an e tra fillip to banking e perience.

/9

Fa+&,) Sa@&!/( A%%"$!t 'otak $ro )avings package entitles a 6amily )avings !ccount. This account comes with a host of benefits like 'otak (0Bay )weep, !t0par cheque facility and other beneficial features. )o now, even dear ones of the accountholder can en+oy the banking. Free CheE$e P&%C2$p The accountholder can avail the added benefit of a Nfree7 cheque pick up service. This service enables to have cheques and documents picked up from the doorstep on a daily basis, helping the accountholder to devote more time and energy to business Free At2H"+e Ser@&%e( This service enables the accountholder to make Dtility "ill payments like electricity, telephone and mobile phone bills and also get document delivery and pick up from the bank.

/8

CON=ENIENCE BANKING
! host of convenience banking facilities allows the accountholder to access account anytime, anywhere. G,"8a, De8&t Car# !ccess the account free of cost at 1AAAK 'otak Mahindra "ank and <&6. "ank !TMs by using the >I)! %lobal &ebit .ard. The accountholder can also use &ebit .ard at all >I)! affiliated merchant establishments and !TMs worldwide. Ph"!e Ba!C&!/ &ial (5 hour Toll 6ree number 19AA 11@A(( E;orth IndiaF *, E,est of IndiaF from anywhere and customer .are *fficer will help instantly with all banking requirements. Net Ba!C&!/ ?ust log on Owww.kotak.comP to access O;et banking facilityP . Take advantage of the Internet to bank from home, office or anywhere in the world at a time of convenience. M"8&,e Ba!C&!/ Dse this service to access bank account anywhere, anytime. It is quick and easy, available to the accountholder (5G: and it7s absolutely free. The accountholder don7t have to pay any charge to avail this service. The account holder can use Mobile "anking to check account balance, last 1 transactions details, issued cheque status and request a cheque book. The customer can use !lerts )ervice to get !lerts by )M) and#or email whenever the balance falls
@A

below the !verage Ruarterly "alance or a )tanding Instruction set by the account holder fails or the accountholder can even ask for account balance to be sent on a daily basis or weekly basis. E,&/&8&,&t) Cr&ter&a The(e %$rre!t a%%"$!t( are "''ere# t" S",e Pr"pr&et"r(h&p(A Part!er(h&p( a!# Pr&@ate L&+&te# C"+pa!&e(. To be eligible $ro !ccount customers need to maintain a minimum average quarterly balance of ,s./AAAA. ;on0maintenance of this balance invites a fee of ,s.:/A per quarter. D"%$+e!tat&"! Cr&ter&a A%%"$!t Ope!&!/ ReE$&re+e!t(2 .ompleted !ccount *pening 6orm $assport size photograph of every signatory duly signed $!; card !ddress $roof document Identity card

A##&t&"!a, #"%$+e!t( reE$&re#B Part!er(h&p(B $artnership &eed L&+&te# C"+pa!)B Memorandum and !rticles, "oard ,esolution, -ist of &irectors

@1

K"taC A%e C$rre!t A%%"$!t

Feat$re( Attra%t&@e Ret$r!( B$(&!e(( A#@a!ta/e( A%e Pr&@&,e/e( C"!@e!&e!%e Ba!C&!/.

ATTRACTI=E RETURNSB 'otak !ce .urrent !ccount combines liquidity of a current account with the attractive returns of a Term &eposits through the unique 'otak (0Bay )weep. KOTAK AD=ANTAGES !ce current !ccount comes with a host of advantages that are aimed at providing superior banking e perience. Free De+a!# Dra't( !vail &emand &rafts, free of cost, payable at any of the branch locations, +ust by calling $hone "anking services. There is no limit to the number#value of &emand &rafts drawn by the customer at these locations. Bhat7s more, the customer can avail free &&s up to a pre0specified limit, at non0branch locations too.

@(

Free CheE$e C",,e%t&"!( *utstation cheques, drawn on any of the branch locations, would be collected Nfree of charge7 for the account holder. *nly a nominal charge is levied for non0branch location. Free H"+e Ba!C&!/ 6or free cash#demand draft delivery, dial phone0banking service and en+oy time saving banking e perience from the comfort of home or office. The customer can also use the facility for free cash#cheque pickup. Free At par CheE$e( 'otak Mahindra "ank7s !t0par cheques are treated as Nlocal clearing7 cheques across select locations in the country. The !t0par cheque facility comes to the customer free of charge. The customer can now save && making charges while en+oying the convenience of a cheque. Free E,e%tr"!&% F$!# Tra!('er Transfer funds to third party accounts in other banks, without drawing a &emand &raft or a cheque, by using 4lectronic Transfer facility. Bith this facility, the accountholder can save on &emand &raft making#couriering charges and also transfer funds faster. O@er#ra't a/a&!(t Ter+ Dep"(&t !s a 'otak !ce .urrent accountholder, you can avail an overdraft against Term &eposit held with 'M"-. This facility helps effectively tackle short0 term cash flow problems and since the Term &eposits remains intact, the accountholder continue to earn interest on the investment.

@1

ACE PRI=ILAGES !ce account has been designed with e clusive benefits that give an e tra fillip to banking. Free CheE$e P&%C2$p The accountholder can avail the added benefit of a Nfree7 cheque pick up service. This service enables to have cheques and documents picked up from the doorstep on a daily basis, helping the accountholder to devote more time and energy to business Free De+at A%%"$!t !s an !ce .urrent !ccount customer, the accountholder can open a &emat !ccount with 'otak bank free of charge. 4ven the annual charges towards the &emat account are waived off. Fa+&,) Sa@&!/( A%%"$!t !ce account allows e tending the 'otak banking e perience with 1 family savings accounts. The family savings account comes with a host of benefits like 'otak (0Bay )weep, !t0par .heque facility and other attractive features. Free Tra#&!/ A%%"$!t 'otak !ce savings account customer can avail a Nfree Trading account with 'otak )ecurities, giving access to online trading through 'otaksecurities.com. !nd with $ayment %ateway facility, the accountholder can pay trading bills online from bank account directly. Free I!@e(t+e!t A%%"$!t

@5

!vail a free investment account that provides a consolidated view of all the investments. The Investment account statement gives a Nsingle window view7 of Mutual 6und portfolio, listing the ;!> of each scheme invested into, current consolidated value of portfolio, and realized#unrealized returns against each investment made. Per("!a, I!@e(t+e!t A#@&("r To identify and analyze the specific investment requirements, 'M"- provide a dedicated $ersonal Investment !dvisor. This person alerts the customer of investment opportunities, sends regular updates and feedback on the performance of the investments, helping for monitor, manage and grow wealth in the ever fluid investment climate.

CON=ENIENCE BANKING
! host of convenience banking facilities allows the accountholder to access account anytime, anywhere. G,"8a, De8&t Car# Free !ccess the account free of cost at 1AAAK 'otak Mahindra "ank and <&6. "ank !TMs by using the >I)! %lobal &ebit .ard. The accountholder can also use &ebit .ard at all >I)! affiliated merchant establishments and !TMs worldwide.

@/

Ph"!e Ba!C&!/ &ial (5 hour Toll 6ree number 19AA 11@A(( E;orth IndiaF *, E,est of IndiaF from anywhere and customer .are *fficer will help instantly with all banking requirements. Net Ba!C&!/ ?ust log on www.kotak.com to access ;et banking facility. Take advantage of the Internet to bank from home, office or anywhere in the world at a time of convenience. At2H"+e Ser@&%e( This service enables the accountholder to make Dtility "ill payments like electricity, telephone and mobile phone bills and also get document delivery and pickup from the bank. M"8&,e Ba!C&!/ Dse this service to access bank account anywhere, anytime. It is quick and easy, available to the accountholder (5G: and it7s absolutely free. The accountholder don7t have to pay any charge to avail this service. The account holder can use Mobile "anking to check account balance, last 1 transactions details, issued cheque status and request a cheque book. The customer can use !lerts )ervice to get !lerts by )M) and#or email whenever the balance falls below the !verage Ruarterly "alance or a )tanding Instruction set by the account holder fails or the accountholder can even ask for account balance to be sent on a daily basis or weekly basis.

@@

E,&/&8&,&t) Cr&ter&a The(e %$rre!t a%%"$!t( are "''ere# t" S",e Pr"pr&et"r(h&p(A Part!er(h&p( a!# Pr&@ate L&+&te# C"+pa!&e(. To be eligible !ce !ccount customers need to maintain a minimum average quarterly balance of ,s.(/AAAA. ;on0maintenance of this balance invites a fee of ,s :/A per quarter. D"%$+e!tat&"! Cr&ter&a A%%"$!t Ope!&!/ ReE$&re+e!t(2 .ompleted !ccount *pening 6orm $assport size photograph of every signatory duly signed $!; card !ddress $roof document Identity card A##&t&"!a, #"%$+e!t( reE$&re#B Part!er(h&p(B $artnership &eed L&+&te# C"+pa!)B Memorandum and !rticles, "oard ,esolution, -ist of &irectors

@:

Sa@&!/( A%%"$!t

@9

K"taC E#/e Sa@&!/( A%%"$!t

Feat$re( Attra%t&@e Ret$r!( K"taC A#@a!ta/e( C"!@e!&e!%e Ba!C&!/.

4veryone needs a savings avenue that makes the most of their hard earned money. 'otak Mahindra "ank offers the 'otak 4dge savings !ccount, armed with 'otak (0Bay )weep and entire gamut of banking privileges. The feature rich 'otak 4dge savings !ccount is the ideal way to make money work harder.

ATTRACTI=E RETURNSB 'otak 4dge savings !ccount combines liquidity of a savings account with the attractive returns of a Term &eposits through the unique 'otak (0Bay )weep. *24a) S?eep (0Bay )weep ensures that the money never stops working by linking the savings account to a term deposit. Attra%t&@e Ret$r!(B 6unds above a pre0set limit in the saving account are automatically swept into a Term &eposit account in units of ,s 1A,AAA and invested for a period of 191 days, allowing the customer to earn higher interest on the savings.

@8

 Ma9&+$+ L&E$&#&t)2 )hould cash withdrawals and cheques issued e ceed the balance in the savings account, 'M"- make sure that the transactions are honored. 'M"- do that by sweeping the Term &eposits into the savings account in units of ,s 1AAAA. !nd then too, it takes care to transfer only the latest term deposits which ensure that the interest loss is minimized. The remaining amount in the term deposit account continues to earn higher interest at the original applicable rate. 'M"- levy no penalty for premature withdrawals from term deposits. KOTAK AD=ANTAGES 4 perience the Nedge7 while banking through a host of advantages offered by 'otak 4dge )avings !ccount. Free H"+e Ba!C&!/ 6or free cash#demand draft delivery, dial phone banking service and en+oy time saving banking e perience from the comfort of home or office. The customer can also use the facility for free cash#cheque pickup. Free At par CheE$e( 'otak Mahindra "ank7s !t0par cheques are treated as Nlocal clearing7 cheques across select locations in the country. The !t0par cheque facility comes to the customer free of charge. The customer can now save && making charges while en+oying the convenience of a cheque. Free CheE$e C",,e%t&"!(

:A

*utstation cheques, drawn on any of the branch locations, would be collected Nfree of charge7 for the account holder. *nly a nominal charge is levied for non0branch location.

Free E,e%tr"!&% F$!# Tra!('er Transfer funds to third party accounts in other banks, without drawing a &emand &raft or a cheque, by using 4lectronic Transfer facility. Bith this facility, the accountholder can save on &emand &raft making#couriering charges and also transfer funds faster. CON=ENIENCE BANKING ! host of convenience banking facilities allows the accountholder to access account anytime, anywhere. G,"8a, De8&t Car# !ccess the account free of cost at 1AAAK 'otak Mahindra "ank and <&6. "ank !TMs by using the >I)! %lobal &ebit .ard. The accountholder can also use &ebit .ard at all >I)! affiliated merchant establishments and !TMs worldwide. Ph"!e Ba!C&!/ &ial (5 hour Toll 6ree number 19AA 11@A(( E;orth IndiaF *, E,est of IndiaF from anywhere and customer .are *fficer will help instantly with all banking requirements. Net Ba!C&!/

:1

?ust log on www.kotak.com to access ;et banking facility. Take advantage of the Internet to bank from home, office or anywhere in the world at a time of convenience.

At2H"+e Ser@&%e( This service enables the accountholder to make Dtility "ill payments like electricity, telephone and mobile phone bills and also get document delivery and pickup from the bank. M"8&,e Ba!C&!/ Dse this service to access bank account anywhere, anytime. It is quick and easy, available to the accountholder (5G: and it7s absolutely free. The accountholder don7t have to pay any charge to avail this service. The account holder can use Mobile "anking to check account balance, last 1 transactions details, issued cheque status and request a cheque book. The customer can use !lerts )ervice to get !lerts by )M) and#or email whenever the balance falls below the !verage Ruarterly "alance or a )tanding Instruction set by the account holder fails.

:(

K"taC Pr" Sa@&!/( A%%"$!t

Feat$re( Attra%t&@e Ret$r!( K"taC A#@a!ta/e( Pr" Pr&@&,e/e( C"!@e!&e!%e Ba!C&!/.

4veryone needs a savings avenue that makes the most of their hard earned money. 'otak Mahindra "ank offers the 'otak $ro savings !ccount, armed with 'otak (0Bay )weep and entire gamut of banking privileges and Nuser0 friendly7 .onvenience "anking facilities. The feature rich 'otak $ro savings !ccount is the ideal way to make money work harder. ATTRACTI=E RETURNSB 'otak $ro )avings !ccount combines liquidity of a savings account with the attractive returns of a Term &eposits through the unique 'otak (0Bay )weep. KOTAK AD=ANTAGES
:1

The host of features offered by 'otak $ro )avings !ccount makes money to work while offering .onvenient "anking e perience. Free H"+e Ba!C&!/ 6or free cash#demand draft delivery, dial phone banking service and en+oy time saving banking e perience from the comfort of home or office. The customer can also use the facility for free cash#cheque pickup.

Free At par CheE$e( 'otak Mahindra "ank7s !t0par cheques are treated as Nlocal clearing7 cheques across select locations in the country. The !t0par cheque facility comes to the customer free of charge. The customer can now save && making charges while en+oying the convenience of a cheque. Free De+a!# Dra't( !vail &emand &rafts, free of cost, payable at any of the branch locations, +ust by calling $hone "anking services. There is no limit on the number# value of &&7s drawn by the customers at these locations. Bhat7s more, the customer can avail free &&s up to a pre0specified limit, at non0branch locations too. Free CheE$e C",,e%t&"!( *utstation cheques, drawn on any of the branch locations, would be collected Nfree of charge7 for the account holder. *nly a nominal charge is levied for non0branch location. Free E,e%tr"!&% F$!# Tra!('er Transfer funds to third party accounts in other banks, without drawing a &emand &raft or a cheque, by using 4lectronic Transfer facility. Bith this facility, the accountholder can save on &emand &raft making#couriering charges and also transfer funds faster.

:5

PRO PRI=ILAGE 'otak $ro )avings account comes with special privileges that provide an e tra fillip to banking e perience. Fa+&,) Sa@&!/( A%%"$!t 'otak $ro )avings package entitles a 6amily )avings !ccount. This account comes with a host of benefits like 'otak (0Bay )weep, !t0par cheque facility and other beneficial features. )o now, even dear ones of the accountholder can en+oy the banking. Free At2H"+e Ser@&%e( This service enables the accountholder to make Dtility "ill payments like electricity, telephone and mobile phone bills and also get document delivery and pickup from the bank.

CON=ENIENCE BANKING
! host of convenience banking facilities allows the accountholder to access account anytime, anywhere. G,"8a, De8&t Car# !ccess the account free of cost at 1AAAK 'otak Mahindra "ank and <&6. "ank !TMs by using the >I)! %lobal &ebit .ard. The accountholder can also use &ebit .ard at all >I)! affiliated merchant establishments and !TMs worldwide. Ph"!e Ba!C&!/

:/

&ial (5 hour Toll 6ree number 19AA 11@A(( E;orth IndiaF *, E,est of IndiaF from anywhere and customer .are *fficer will help instantly with all banking requirements. Net Ba!C&!/ ?ust log on www.kotak.com to access ;et banking facility. Take advantage of the Internet to bank from home, office or anywhere in the world at a time of convenience. M"8&,e Ba!C&!/ Dse this service to access bank account anywhere, anytime. It is quick and easy, available to the accountholder (5G: and it7s absolutely free. The accountholder don7t have to pay any charge to avail this service. The account holder can use Mobile "anking to check account balance, last 1 transactions details, issued cheque status and request a cheque book. The customer can use !lerts )ervice to get !lerts by )M) and#or email whenever the balance falls below the !verage Ruarterly "alance or a )tanding Instruction set by the account holder fails.

K"taC A%e Sa@&!/( A%%"$!t

Feat$re( Attra%t&@e Ret$r!( K"taC A#@a!ta/e( A%e Pr&@&,e/e( C"!@e!&e!%e Ba!C&!/.

:@

4veryone needs a savings avenue that makes the most of their hard earned money. 'otak Mahindra "ank offers the 'otak !ce savings !ccount, armed with 'otak (0Bay )weep and entire gamut of banking privileges and Nuser0 friendly7 .onvenience "anking facilities. The feature rich 'otak !ce savings !ccount is the ideal way to make money work harder

ATTRACTI=E RETURNSB 'otak !ce savings !ccount combines liquidity of a savings account with the attractive returns of a Term &eposits through the unique 'otak (0Bay )weep. KOTAK AD=ANTAGES !ce savings !ccount comes with a host of advantages that are aimed at providing superior banking e perience. Free H"+e Ba!C&!/ 6or free cash#demand draft delivery, dial phone banking service and en+oy time saving banking e perience from the comfort of home or office. The customer can also use the facility for free cash#cheque pickup. Free At par CheE$e( 'otak Mahindra "ank7s !t0par cheques are treated as Nlocal clearing7 cheques across select locations in the country. The !t0par cheque facility comes to the customer free of charge. The customer can now save && making charges while en+oying the convenience of a cheque. Free De+a!# Dra't( !vail &emand &rafts, free of cost, payable at any of the branch locations, +ust by calling $hone "anking services. There is no limit to the number#value of &emand &rafts drawn by the customer at these locations. Bhat7s more, the

::

customer can avail free &&s up to a pre0specified limit, at non0branch locations too. Free CheE$e C",,e%t&"!( *utstation cheques, drawn on any of the branch locations, would be collected Nfree of charge7 for the account holder. *nly a nominal charge is levied for non0branch location. Free E,e%tr"!&% F$!# Tra!('er Transfer funds to third party accounts in other banks, without drawing a &emand &raft or a cheque, by using 4lectronic Transfer facility. Bith this facility, the accountholder can save on &emand &raft making#couriering charges and also transfer funds faster.

Free At2H"+e Ser@&%e( This service enables the accountholder to make Dtility "ill payments like electricity, telephone and mobile phone bills and also get document delivery and pickup from the bank. ACE PRI=ILAGES !ce account has been designed with e clusive benefits that give an e tra fillip to banking. Free De+at A%%"$!t !s an !ce )avings !ccount customer, the accountholder can open a &emat !ccount with 'otak bank free of charge. 4ven the annual charges towards the &emat account are waived off.

:9

Fa+&,) Sa@&!/( A%%"$!t !ce account allows e tending the 'otak banking e perience with 1 family savings accounts. The family savings account comes with a host of benefits like 'otak (0Bay )weep, !t0par .heque facility and other attractive features.

:8

Free Tra#&!/ A%%"$!t 'otak !ce savings account customer can avail a Nfree Trading account with 'otak )ecurities, giving access to online trading through 'otaksecurities.com. !nd with $ayment %ateway facility, the accountholder can pay trading bills online from bank account directly. Free I!@e(t+e!t A%%"$!t !vail a free investment account that provides a consolidated view of all the investments. The Investment account statement gives a Nsingle window view7 of Mutual 6und portfolio, listing the ;!> of each scheme invested into, current consolidated value of portfolio, and realized#unrealized returns against each investment made. Per("!a, I!@e(t+e!t A#@&("r To identify and analyze the specific investment requirements, 'M"- provide a dedicated $ersonal Investment !dvisor. This person alerts the customer of investment opportunities, sends regular updates and feedback on the performance of the investments, helping for monitor, manage and grow wealth in the ever fluid investment climate. CON=ENIENCE BANKING ! host of convenience banking facilities allows the accountholder to access account anytime, anywhere. G,"8a, De8&t Car# Free !ccess the account free of cost at 1AAAK 'otak Mahindra "ank and <&6. "ank !TMs by using the >I)! %lobal &ebit .ard. The accountholder can

9A

also use &ebit .ard at all >I)! affiliated merchant establishments and !TMs worldwide. Ph"!e Ba!C&!/ &ial (5 hour Toll 6ree number 19AA 11@A(( E;orth IndiaF *, E,est of IndiaF from anywhere and customer .are *fficer will help instantly with all banking requirements. Net Ba!C&!/ ?ust log on www.kotak.com to access ;et banking facility. Take advantage of the Internet to bank from home, office or anywhere in the world at a time of convenience. M"8&,e Ba!C&!/ Dse this service to access bank account anywhere, anytime. It is quick and easy, available to the accountholder (5G: and it7s absolutely free. The accountholder don7t have to pay any charge to avail this service. The account holder can use Mobile "anking to check account balance, last 1 transactions details, issued cheque status and request a cheque book. The customer can use !lerts )ervice to get !lerts by )M) and#or email whenever the balance falls below the !verage Ruarterly "alance or a )tanding Instruction set by the account holder fails or the accountholder can even ask for account balance to be sent on a daily basis or weekly basis.

91

9(

&ifferent )avings !ccount FEATURES !R" Investment a#c !dd. )avings a#c (0Bay )weep <ome "anking && .heque .ollections )tatements .onvenience EDGE AFC 1AAAA 6ree ;il !bove (Ak 6ree .harged 6ree Ruarterly 6ree PRO AFC (AAAA 6ree 1 a#c !bove5A' 6ree ACE AFC :/AAA 6ree 1a#c !bove1/Ak 6ree

6ree up to ,s / lacs 6ree up to ,s 1A lacs p.a 6ree Ruarterly 6ree 6ree 6ree for 1st yr. (/' (/' 6ree 6ree .harged p.a 6ree Monthly 6ree 6ree 6ree for life :/' /A' 6ree 6ree 6ree

"anking !t par .heque "ook 6ree !TM cum &ebit card 6ree for 1st yr &aily cash -imit &aily $*) -imit *wn#<&6. !TM7s >isa &omestic !TM >isa International !TM (/' (/' 6ree .harged .harged

&ifferent .urrent !ccounts

91

Pr"%e#$re A#"pte# '"r Ope!&!/ the A%%"$!t FEATURES !R" Investment a#c !dd. )avings a#c (0Bay )weep <ome "anking && .heque .ollections )tatements .onvenience "anking !t par .heque "ook !TM cum &ebit card &aily cash -imit &aily $*) -imit >isa &omestic !TM >isa International !TM .harged .harged 6ree (/' (/' .harged (/' (/' 6ree 6ree :/' /A' 6ree 6ree 6ree 6ree for 1st yr 6ree 6ree for 1st yr. 6ree 6ree for life EDGE AFC 1AAAA 6ree ;il !bove (Ak 6ree .harged 6ree Ruarterly 6ree PRO AFC (AAAA 6ree 1 a#c !bove5A' 6ree 6ree up to ,s/ lacs p.a 6ree Ruarterly 6ree ACE AFC :/AAA 6ree 1a#c !bove1/Ak 6ree 6ree up to ,s1A lacs p.a 6ree Monthly 6ree

*wn#<&6. !TM7s 6ree

.all up the prospective customer

95

Customer Interested

>isit to the prospective customer

Customer Convinced And Applies

.ollect the necessary documents

Documents Sent to Sales. Dept.

Deviations sent to the sales .Dept.

Deviations

Sales department check the documents

.ollection of further required documents

;egative >erification of &ocuments by "ank

6ile ,e+ected

9/

RESEARCH METHODOLOG;

9@

T&t,e "' the St$#)B

O.D)T*M4, ,4-!TI*; )<I$ M!;!%4M4;T I; I;&I!; ,4T!I"!;'I;%P

O8Ge%t&@eB To understand the Indian "anking )ystem. To understand the retail trends followed by the modern retail "anks. To understand the banking relationship of organizations with their e isting banker. $roduct Innovation for them. To generate the business by generating leads. T)pe "' re(ear%hB Re(ear%h #e(&/! Sa+p,e (&He 2 &escriptive 1AA customers

Meth"# "' (e,e%t&!/ (a+p,eB :$e(t&"!!a&reB The data was collected through questionnaire, in which different question were asked

9:

S%"pe "' (t$#)B My study will help to understanding the Indian banking system as well as to identify the e isting bank OMarket reputationP My study will provide information about general practices adopted by the various bank in order to carry their customers in the area of retail banking business. . L&+&tat&"!( "' the (t$#)B &ue to time constraint, the research was confined to Ddaipur only )ample size is very small. )ome of the respondents shows biasness and gave wrong information. )ome of the respondents do not cooperate and are not interested in answering.

99

A!a,)(&( a!# Data I!terpretat&"!

98

1. !..*D;T) I; T<4 "!;' !;& T<4 ;!TD,4 *6 T<4 !..*D;T).

)""? $;" .4;T,!- "!;' )T!T4 "!;' *6 I;&I! "!;' *6 I;&I! I&"I "!;' *6 ,!?!)T<!; "!;' *6 "!,*&! I.I.I <&6. .4;TD,I*; "!;' )J;&I.!T4 "!;' .ITI"!;' D.* DTI *". D;I*; "!;' *6 I;&I!

1A 1/ 5 1( 5 1A 1A / 1A @ 1 5 1 5 1 5 1

( 1

1 1

8A

45 40 35 30 25 20 30 15 10 5 0
S ! "#

)!>I;%) !..*D;T

15 4 12 4 10
A# S ( I ) I ID I

10 5
)

10

I!terpretat&"!B !s it can be predicted from the graph, 1A organizations have their savings account with )""? bank. Most of the consumers have their savings account in nationalized bank as they found nationalized banks very safe and trustworthy. The other ma+or players are $un+ab ;ational "ank and "ank of ,a+asthan.

C $# %, S&# I) D # IC C I% A %I$ A# ( , C ) , %I ) C , I
81

%& A'

C $#

&

IC IC I * D +C

(. ,4!)*;) "4<I;& T<4 ,4-!TI*;)<I$ BIT< "!;'). 00 /0 60 50 40 30 20 10 0 Sa1et2 "ast relationship "ro5imit2 to o11ice 3ith 4anks others 24 60 . /

I!terpretat&"!B Most of the consumers have relationship with their e isting bankers because they have very long term and past relationship with their banks and they are quite satisfied with their services. !nother reason for relationship is safety. *ut of 1AA, @A favored past relationship and (5 favored safety as their reason.

8(

1. 6!.I-ITI4) $,*>I&4& "J "!;') !;& D)4& "J T<4 .*;)DM4,

ra nc h

an ki n7

100 .0 00 /0 60 50 40 30 20 10 0

05 05

40

41 35 22

45 36 3. 25

ank "rovides +acilit2 used

"h on e

In te rn et

I!terpretat&"!B 4ach is using "ranch facility. The other facility used by them is $hone "anking as they consider it safe.

* om

e8 D oo r

st ep

4a nk in 7
81

an ki n7

A% 6

5. !B!,4;4)) 6*,M )4,>I)4)4) $,*>I&4& "J "!;').

100 .0 00 /0 60 50 40 30 20 10 0 Auto s3ep in +D At par che9ues 10 0 31 1/

0/

A3are Availed 20 0 Credit Cards 0 Investment Advisor2

I!terpretat&"!B
*nly 19 consumers out of 1AA are aware about !uto swep 6& facility and 9 are availing it. 11 are aware about !t0par cheque book facility and 1: are availing it as bank takes charges for this facility. 1A is availing .redit card and 11 is from investment advisory services.

85

/. 6.,! !..*D;T) I; "!;')

16 14 12 10 0 6 4 2 0

14

&esponse in num4ers

IC IC *D I +C

)&

I!terpretat&"!B
.onsumers who receive foreign funds from outside the country have to register themselves under 6oreign .ontribution ,egulation !ct, 189@ E6.,!F. The main purpose of this act is to curb the use of foreign funds. 6or instance ;%*s have to open a 6.,! account in any bank to deposit that received foreign funds so that government can know about the use of foreign funds.15 consumers have 6.,! account in )""? bank reason being safety and past relationship else the rest don7t have ma+or hold on 6.,! account.

S" #D # IC A% $ ) Ci C t i4 an k

8/

@. )*D,.4) *6 6D;& !;& T<4I, 6,4RD4;.J

S"$r%e( "' F$!#(

30 25 20 15 10 5 0 I#DIA A &)AD 10 &esponse in nos. 2/

FreE$e!%)

16 14 12 10 0 6 4 2 0

14

&esonse in nos. 4 5 3 0 elo3 10 'acs 11:30 'acs 31:50 'acs 51:/0 'acs /1 'acs and A4ove

8@

F"r+ "' Re%e&pt(

30 26 25 20 15 10 5 0 Demand Dra1t Cash Che9ue 3 &esponse in nos. 21

I!terpretat&"!B Though most of the organizations have registered themselves under 6.,! account but ma+ority of funds come from India only. Most of 6.,! ,egistered organizations in udaipur get funds from India only. "ut some of organizations receive huge money from abroad like C"!($+er U!&t Tr$(t "' I!#&aA RaGa(tha! Ca!%er S"%&et). The average frequency of funds received by these organizations in Ddaipur is below 1A lacks and only / of such organizations get above ,s:1 -akhs. .heque is the ma+or form in which these organizations received their fund either from India or !broad. &emand &raft is another form in which they receive funds.

8:

:. M!?*, !,4! *6 I;.*MI;% 6D;&

100 00 60 40 20 0 ;ith in the Cit2 ;ith in All over India &a<asthan A4road 20 26 00

30 &esponse in nos.

I!terpretat&"!B 9A out of 1AA organizations receive the funds from all over India and 19 received from !broad. ! very few of them received only from ,a+asthan or within city.

89

9.M!?*, $!JM4;T !;& T<4 6*,M I; B<I.< T<4J !,4 M!&4

PA M!"# MO$!
35 30 25 20 15 10 5 0
% &

31

33 2. 20 22 1/ 0 2 2 1
S $ S

CAS* C*$@,$ D&A+%

% I= $

'A &

I#

>

IS

S A

&

6 I# IS

+,

A D

I!terpretat&"!B !s it can be predicted from above chart, cash is the ma+or mode of payment made by these firms whether it is !dministrative, salary or pro+ect related &raft is also a mode of payment used by these firm but is not used so much as used only when to buy some machines or to make payment through draft only

"

&

!$

"

88

The other form is cheque and the payment by cheque are mostly done for pro+ect related e penses or salary. !dministrative e penses are not carried by cheque

COMPARATI=E ANAL;SIS OF ACCOUNTS 4ITH COMPETATI=E BANKS

1AA

COMPARATI=E ANAL;SIS Today is the world of competition. In this competitive scenario, each and every company has to keep an eye on its competitor. To help this out, I have done comparative analysis of different banks and their services keeping in mind of 'otak Mahindra "ank -imited. I have done comparative analysis so that I can be able to know about the competitor7s services. This will help me out to handle the customer queries and make them understand how 'otak "ank is different and better than other banks. This analysis will help to convince the customer easily for creating and building a new and fair, healthy relationship with 'otak "ank. Pr"%e#$re a#"pte# '"r %"+parat&@e a!a,)(&(B )tudy and understood the services provided by 'otak Mahindra "ank -imited in its current account and savings account >isited various banks and gather information about their services through2 $ersonal Interview Internet "roachers and $amphlets Ruestionnaire.
1A1

;ow along with 'otak Mahindra "ank, I had visited various other banks also to know the difference in the financial products being offered by them in the market and by doing that I came on the following comparison.

COMPARATI=E ANAL;SIS OF SA=INGS ACCOUNTS

FEATURES F BANK MI; !R" ( B!J )B44$ <*M4 "!;'I;% &4M!;& &,!6T 4.)

ICICI

HDFC

UTI

IDBI

HSBC

KOTAK

/,AAA J4)

/,AAA ;*

/,AAA ;*

/A,AAA (/,AAA J4) J4)

(A,AAA J4)

;*

;*

;*

J4)

.<!,%4 J4) &

.<!,%4& .<!,%4 6,44 & J4) J4) <&6. J4) DTI

J4)

6,44

6,44

J4) I&"I

J4) <)".

J4) >I)! &*M4)TI .

&4"IT .!,& I.I.I

$<*;4 "!;'I;%

J4)

J4)

J4)

J4)

J4)

J4)

1A(

;4T "!;'I;% M*"I-4 "!;'I;% T,!&I;% !#. &4M!T !#.

J4)

J4)

J4)

J4)

J4)

J4)

J4)

J4)

J4)

J4)

J4)

J4)

.<!,%4& .<!,%4 .<!,%4 ;* & &

.<!,%4 6,44 & .<!,%4 6,44 &

.<!,%4& .<!,%4 .<!,%4 J4) & &

COMPARITI=E ANAL;SIS OF CURRENT ACCOUNTS FEATURES F BANK MI; !R" 1AAAAA 1AAAAA !M"0 1AAAAA ( B!J )B44$ <*M4 "!;'I;% -IMIT4& ;* ;* J4) 6,44 6,44 ;* J4) ;* 1AAA 1AAAAA AA J4) J4) J4) (/AAAA ICICI HDFC UTI IDBI HSBC KOTAK

1A1

&4M!;& &,!6T

-IMIT4& 6,44 -IMIT

D$T* ,s. ,s.1A D$T* ! D;-IMIT4& 6*, ",!;.< -*.!TI*; .6,44 6*, ;*;0 ",!;.< -*.!TI*; D$T* ,s.1A -!'<). !-- >I)! &*M4)TI. !;& I;T4,;!TI* ;!- !TM7s E$.MF

D$T* ! (A -!'< -akh -IMIT

&4"IT .!,& I.I.I

<&6.

DTI

I&"I <)".

$<*;4 "!;'I;% ;4T "!;'I;% M*"I-4 "!;'I;% T,!&I;% !#. &4M!T !#.

6,44

6,44

6,44

J4) 6,44

6,44

6,44

6,44 6,44

J4) 6,44

6,44

6,44

6,44

6,44

J4) 6,44

6,44

;*

;*

;*

;*

;*

6,44

6,44

6,44

J4)

J4) ;*

6,44

1A5

!T $!, .<4RD4 "**'

6,44

6I,)T 6,44 T<4; &

D$T* ,s.:/ -!'<

D$T 6,44 * ,s./ .r. $.M free

D;-IMIT4& 6,44

.<!,%4 E$.MF

1A/

S4OT ANAL;SIS

1A@

S4OT ANAL;SIS OF KMBLB

Stre!/th(B >ery fast growing bank of ,a+asthan as well as of India. Track record of high growth and profitability. )trong financial background. *ne of the biggest financial institutions before converting into bank. -ong e perience of banking that is why it is called (/ years old new bank. -atest technology used by the bank. 6ree <ome "anking transaction facility. >ery good database maintained by the bank, i.e., "anking .ustomer Information &atabase.

4eaC!e((e(B -ow brand image. <igh average quarterly balance to be maintained by the costumer. -ack of coordination between different departments. -ack of costumer awareness regarding services and bank because of low advertising.

Opp"rt$!&t&e(B
1A:

 *pportunities of entering into ma+or cities of ,a+asthan. )cope of more !TM networks. *pportunities to increase its customer base in liabilities section by marketing their products on local television channels, canopy, hoardings. Threat(2 Threats from nationalized banks. Threats from private bank like I.I.I, DTI, <&6. because these banks open both savings and current account at a very nominal amount with somewhat similar services

1A9

CONCLUSION
CONCLUSION L&+&tat&"!( "' Reta&, Ba!C&!/ The bank into retailing will have to face following bottlenecks in its operations <uge sales and promotion e penditure Managing human resources Managing technology $ressure on margins .ontinuous follow0up !ttitude hurdles )ecurity problems H$/e Sa,e( a!# Pr"+"t&"! E9pe!#&t$re In order to survive in the world of fierce competition with so many players, each bank has to incur huge amount of funds on sales and promotion. ;o bank can deny this e penditure because they need to build their image among the customers, to get business. Ma!a/&!/ H$+a! Re("$r%e( ,etail banking caters to the need of individual customers. 6or this purpose qualified and trained staff is needed to be maintained. 6or training those
1A8

employees, banks spend a huge amount of money. )ometimes these trained personnel leave the +ob halfway which increases the e penditure of the bank. !part from this banks also have to maintain various cells regarding customer grievance, employee grievance, etc. which again increases the e penditure of the bank. Ma!a/&!/ Te%h!","/) Technology plays an important role in retail banking. Today ma+ority of transactions in banks are done through !TMs, Mobile banking, $hone banking, Internet banking. 6or this purpose it is necessary effective and efficient management of technology. Maintaining technology incurs huge e penditure, which sometimes create problem for the banks to accumulate funds for these purposes.

Pre(($re( "! Mar/&! To retain the e isting customer base as well as to e pand, the banks are pressurized to keep the minimum prices possible. Thus the banks have huge pressures on their margins. C"!t&!$"$( F",,"?2$p In order to earn more profit banks are going for mass banking. "ut in this race the maintenance of the customer base becomes very difficult. The problems like ;$!7s and delay in payment of usage changes occur which leads to losses for the banks. Thus the banks have to maintain continuous follow0up programs, which require efficient technology, human resources as well as surplus funds to control e penditure on such programs. Att&t$#e H$r#,e( 4arlier the ma+or players in the banking industry were public sector banks. "ut due to the advent of liberalization and globalization, private and foreign sectors banks have come up which has resulted into a drastic change in the Indian "anking scenario. Bith these banks the latest technology has also come up. "ut still a huge chunk of people does not avail itself with the benefits. $eople still prefer going to banks and carry out the regular paper work when then same thing can be done very easily through their mobile phones and internet. Thus people from rural areas should be given proper information and should be educated and their attitude needs to be changed, since it is a ma+or hurdle for the growth of the retail banking products.

11A

Se%$r&t) Pr"8,e+( ,etail banking products like net banking, phone and mobile banking and !TMs are solely dependent on technology. If there is any problem in the network or a system as a whole, it would result into huge losses for the banks as well as their customers. Therefore proper security measures should be in place to secure customers7 date and identification codes. OThis study has helped me to know the whole functioning of one of the ma+or pillars of our economy which is "anks. Bith the !dvent of %lobalization and -iberalization new ways to improve customer relationship have emerged in front of the banks. These new ideas will help them in acquiring new customers and maintaining the e isting customer base. *ne of the new fast emerging tools with banks to improve up on customer retention and satisfaction is ,etail "anking and by adopting this many banks have achieved growth in their business like never beforeP

111

S$//e(t&"!( I Re%"++a!#at&"!(

11(

SUGGESTIONS I RECOMMENDATIONS 'otak Mahindra "ank should chalk out some programs to create /e!era, a?are!e(( regarding its presence and various services of the bank. More attention is required in distant located firms and caters the needs of those commercial areas. Per("!a, MarCet&!/ F A//re((&@e MarCet&!/B Today is the era of competition. In order to increase the banking network Ein terms of clients and business volumeF an aggressive approach is required. The bank should recruit more number of marketing personnel, so that they can cover the whole of the city. $ersonal marketing can be one of the methods or modes of taking people into confidence. Pr"+"t&"!a, %a+pa&/!B 2 In the era of such stringent competitiveness one has to take care of promotional activities. It can be done in following ways2 $romotion Through .ustomers 2 Through motivating the e isting customers to get more business can be one of the modes to have greater access or approachability. The motivation to the customers can be through gifts or through any memento. ,eference )elling2 6ew of the "ank7s e isting customers specially esteemed ones can be asked to give references about relatives# friends or any acquaintance that they consider potential customer. Thus the business volume can be increased.

111

 A#@ert&(&!/B 2 Initially when we took our work we found that general awareness amongst people regarding 'M"- "ank was very low. The bank should instead of being centrally advertised, try to advertise locally. This can be done in following ways2 0

$ublic welfare banners2 0 !n e cellent way to advertise which can be done through tree guards having 'M"- "ank7s name. Traffic posts especially at commercial locations can have boards of "ank. *ne or two ;eon boards can be put at the center places of Ddaipur. !d .ampaign through 6M, ,adio, <oardings, and Television

The bank should come up with +"re 8ra!%he( in other ma+or cities of ,a+asthan The bank should open +"re ATM !et?"rC(. There should be E#$%at&"! tra&!&!/ pr"/ra++e( for )ales 4 ecutives by 'M"-. $rocessing time of opening an account should be reduced.

I!tr"#$%t&"! "' HR pra%t&%e(

115

B&8,&"/raph)

11/

B&8,&"/raph)B

1. http2##www.kotak.com

(. http2##www.google.co.in

11@

11: