A Project Study Report On Training Undertaken at

KOTAK MAHINDRA BANK Retail banking

Submitted in partial fulfillment for t e A!ard of degree of Ma"ter of Bu"ine"" Admini"tration

Submitted To: $a%ult& of AIMS

Submitted By:RISHABH #AR# M'B'A' I( "em

)*+,*-*+,./ A012 INSTIT3T1 O$ MANA#1M1NT 4 S5I1N516 7AI03R

1

8Appro9ed b& AI5T16 Ne! Del i 4 Affiliated to 3ni9er"it& of Ra:a"t an6 7aipur;

D15<ARATION O$ ST3D1NT
I6 RA#H3NANDAN (1RMA, declare that the project report title R1TAI< BANKIN# )KOTAK MAHINDRA BANK/ is based on my project study. This project report is my original piece of ork and has not been used for any purpose any here.

RISHABH #AR#
MBA I( "em

0R1$A51
One management discipline hich perhaps leads organi!ation to the path of success is the co"ordination bet een departments hich is totally controlled by financial management. Theoretical and Practical e#istence has ide gap in the real process. Selection and training process if carried out carefully this to a major e#tent. $ere % reali!ed that theoretical kno ledge pro&ides &ery less importance unless same thing is e#perienced persistent on practical basis. 'ontinuous Project Training at this organi!ation created a uni(ue kno ledge base beneficial for my future. This report un&eils the gro th story of )otak *ahindra bank thro s light on unkno n aspects of banking and ould unfolds the hidden facts about the bank. This report ser&ed as a mean to share our personal e#periences hile orking on this project, hich pro&ided us platform here e ere face"to"face to practical kno ledge of theoretical kno ledge gained so far.

A5KNO=<1D#1M1NT
% e#press my sincere thanks to my project guide, *r. Sunil Pamecha, +eputy ,eneral *anager, of The )otak *ahindra dep-t retail banking for guiding me right from the inception till the successful completion of the project. % sincerely ackno ledge him for e#tending their &aluable guidance, support for literature, critical re&ie s of project and the report and abo&e all the moral support he had pro&ided to me ith all stages of this project. % ould like to e#tend my thanks to my college .)autilya institute of technology /engineering- for the facilities a&ailed to me in terms of library ork.

% ould also like to thank the supporting staff of The 0oan +epartment, for their help and cooperation throughout our project.

RISHABH #AR#

12153TI(1 S3MMAR>
The objecti&e of the project as to learn about the &arious products that the bank had to offer to the customers. The main purpose of study is to kno about the orking capital management. Analysis of &arious 0oan schemes hich is the topic of study includes loan products. %n this report comparati&e study of loan products ha&e been done in order to kno the position of urban cooperati&e bank. A (uestionnaire as also designed in order to e&aluate certain facts hich ill be helpful in order to complete the study. The first part of the report consists of %ntroduction to the industry, the ne#t part includes %ntroduction to the organi!ation and after that study report has been gi&en. A S1OT analysis as also done to kno about the strengths, eaknesses, opportunities and threats of the organi!ation. %n the end conclusions and recommendations ere gi&en on the basis of the study done.

TAB<1 O$ 5ONT1NTS

S'NO' ,' *' @' .' B' C' ?' D' A' ,+' 01RTI53<ARS %ntroduction to the industry %ntroduction to the organi!ation Products of org- in retail banking Research methodology 2inding of the research S ot analysis 'onclusion Suggestion and recommendation Anne#ure 3 4uestionnaire 5iblogrphy 0A#1 NO' ? *, @@ AB ,,, ,,. ,,B ,,C ,,? ,,A

INTOD35TION TO BANKIN# IND3STR>

D1$INITION
Section 67b8of the regulation Act,9:;:defines banking as .the accepting ,for the purpose of lending or in&estment, of deposits of money from the public, repayable on demand or other ise, and other iseithdra al by che(ue, draft, order or

0urpo"e of Bank"
1hat do banks do< 1e kno They act as safe stores of borro ers. %n this that most banks ser&e to accept deposits and make loans. ealth for sa&ers and as predictable sources of loans for

ay, the major business of banks is that of a financial intermediary

bet een sa&ers and borro ers. The bank simplifies this process by eliminating the need for sa&ers to find the right borro ers and the right time to directly make a loan 5anks are generally trusted by the public. 1hen people put their sa&ings into banks, they recei&e little more than a paper receipt in return. There are t o organi!ations in place to ensure that banks are trust orthy ith indi&iduals= money and reasonable in the loans that they make. The 2ederal +eposit %nsurance 'orporation guarantees that deposits, up to >9??,??? per account, ill be returned to the depositor, e&en if the bank fails. %ndi&idual ith ensuring that the bank is taking reasonable risks ill banks also ha&e a board of directors to regulate the si!es and interest rates of loans the bank makes. This board is charged ith its depositors= money. 5anks ser&e another important role. 1hen you look at a check or a debit card you bodies for many financial ser&ices often employed by consumers. %n this able to gi&e depositors access to their money loans. 1hat happens hen you deposit money into a bank< 2irst, the money is recorded 7usually by computer8 and added to your account. %t is then placed into the &ault. A t &arious times during the day, money is remo&ed from the &ault and taken to a second bank. This bank, unlike the first, does not ser&e indi&iduals. %t is a @banks= bank,@ usually a 8 usually see the name of a bank. %ndi&idual banks ser&e as the issuing and regulating ay, banks are hile also maintaining a large number of

branch of the 2ederal Reser&e. The first bank is able to make deposits, take out loans from the second bank. 1hen you to co&er the alk into a bank to ithdra

ithdra als, and

money or to take out a loan, the re&erse of the ithdra s

process outlined abo&e occurs. %f the first bank does not ha&e enough money in the &ault ithdra al or the loan, the first bank goes to the second bank and money. %f the first bank does not ha&e enough money in its account at the second bank, then it must take out a loan at a lo er rate of interest than the loan that it gi&e to the indi&idual borro er. %n this in the &ault. $o do banks make money< As financial intermediaries, they earn enough to support their acti&ities by the difference bet een the interest rate paid to sa&ers and the interest rate charged on loans. 1hen customers make deposits in a sa&ings account, they earn interest on the principle. Similarly, hen customers take out loans, they pay interest on hich is the principle. 5y charging the borro er a slightly higher interest rate than that gi&en to the depositor, a bank is able to co&er its e#penses. ill e&entually ay, a bank is able to accept deposits, honor

ithdra als, and make loans ithout ha&ing to maintain all of the deposited cash on hand

5reation of mone& 5anks ser&e another &ery important purpose in&ol&ing the creation of money. To begin, let=s go to a simplified orld here banks only ser&e as a safe place to store money. They ould simply be do not make loans and do not pay interest. Also, let=s say that the money supply is only >9???. %n this case, if a bank held >9?? in deposits, the money supply >:?? since the >9?? in the bank ithdre ould no longer be in circulation. 1hen the depositor

the >9?? deposit and spent it, the money supply ould again increase to >9???.

This system is called a 9??AB reser&e banking system because a bank holds 9??B of all of the deposits made. %n the real orld though, banks are re(uired to hold significantly less than 9??B of the hich are then redeposit, and can then be ay, any banking system ith deposits in reser&e. A bank can make loans,

loaned out againC this, in essence, creates money. %n this

less than 9??B re(uired reser&es effecti&ely increases the money supply. This system is called fractional reser&e banking because banks hold less than 9??B or a fraction of the deposits in reser&e. 2or e#ample, let=s say that an economy has a money supply e(ual to >9??? and that there is a reser&e re(uirement of 6?B. %f all >9??? is deposited into a bank, half of this 9

amount must be held as reser&es to co&er

ithdra als and half of this amount can be

used to make loans. Say the bank gi&es out >6?? in loans. The money is spent and e&entually redeposit in the bank. Do , the bank has >96?? deposited. Only >9??? of this amount is in currency. The other >6?? is o ed to the bank and e#ists in a form kno n as a paper balance. The bank has >96?? in deposits, and since it is re(uired to keep half in reser&es, it must keep >E6? in currency. This lea&es only >F6? in currency a&ailable for loan seekers. This process continues and real balances are replaced by paper balances until the bank can no longer make loans because all of its currency must be kept in real balances. This action by banks can also be illustrated using a balance sheet procedure. A balance sheet is an accounting tool that lists assets and liabilities. 2or a bank, reser&es and loans ser&e as assets because they are money that the bank has, or has coming. +eposits, on the other hand, are liabilitiesC they are money that the bank o es. 1hen creating a balance sheet, the assets are listed on the left and the liabilities are listed on the right.

5alance Sheet for a 5ank 1e can model the e#ample of fractional reser&e banking presented abo&e using a balance sheet procedure. This is done in figure 9. To begin, list the assets and the liabilities of the bank after >9??? is deposited and >6?? is loaned out. Remember that the reser&e rate is 6?B, so >6?? must be held back in reser&es and the rest may be loaned out. ,i&en that this money is deposited into the bank again rather than stored in a mattress, the liability of deposits increases by >6?? to >96?? 10 hile the reser&es increase

by >F6? to >E6?. The bank no out the entire amount,

has >F6?

ith

hich to make loans. ,i&en that it loans

hich is then deposited again, the liability of deposits increases by

>F6? to >9E6?. 2urthermore, the assets of loans increase to >E6? and the assets of reser&es increase to >GE6. This process continues until the reser&e amount is e(ual to the total amount of the money supply. Until that time, each loan that is made and redeposit increases the money supply.

Mone& multiplier
The process of money creation by banks continues until no more loans can be made due to reser&e re(uirements. Hach time a loan is made and redeposits the possible amount of ne#t loan shrinks. There is an easy ay to determine the total money supply created by an initial deposit. Simply multiply the initial deposit by one o&er the reser&e rate. Then, to find the amount of money created by the bank, simply subtract the initial deposit from this figure. 2or e#ample, say that >F??? is initially deposited into a bank and the reser&e re(uirement is F?B. 1hat is the change in the money supply created by this deposit< 2irst multiply the initial deposit by one o&er the reser&e rate. This gi&es >F??? I 79 J .F8 K >9?,???. Then, subtract the initial depositL >9?,??? " >F??? K >G???. Thus, a >F??? deposit yielded an >G??? change in the money supply. 'learly, there are many jobs and purposes for banks. 5y creating money, banks ser&e to facilitate many transactions ith a relati&ely small initial money supply. 5y holding deposits and making loans, banks fulfill the needs of consumers and producers. %n this ay, banks are more than just financial intermediaries. 5anks are in fact crucial to the functioning of the economy.

11

T&pe" of Bank"
5entral bank"E
The Reser&e 5ank of %ndia is the central 5ank that is fully o ned by the ,o&ernment. %t is go&erned by a central board 7headed by a ,o&ernor8 appointed by the 'entral ,o&ernment. %t issues guidelines for the functioning of all banks operating ithin the country.

0ubli% Se%tor Bank"L

State 5ank of %ndia and its associate banks called the State 5ank ,roup. 9: nationali!ed banks. Regional rural banks mainly sponsored by public sector banks

0ri9ate Se%tor Bank"E

Old generation pri&ate banks. De generation pri&ate banks.

2oreign banks operating in %ndia. Scheduled co"operati&e banks. Don"scheduled banks.

5o-operati9e Se%torL
The co"operati&e sector is &ery much useful for rural people. The co"operati&e banking sector is di&ided into the follo ing categories. State co"operati&e 5anks. 'entral co"operati&e banks Primary Agriculture 'redit Societies

12

De9elopment Bank"F$inan%ial In"titution"E

%2'% %+5% %'%'% %%5% DA5AR+ H#port"%mport 5ank of %ndia Dational $ousing 5ank Small %ndustries +e&elopment 5ank of %ndia Dorth Hastern +e&elopment 2inance 'orporation

13

R1TAI< BANKIN#
M1ANIN#E
The relationship bet een the banker and the customer is not the same like before. The market has undergone a sea change. The customer has become more demanding today. The transition from seller market to buyers market has compelled the bankers to understand the pulse and needs of customers. %t may not be incorrect to say that the banking products and ser&ices by the bankers are not any more a&ailable to the bankers. 5ankers today ha&e no choice e#cept to alter their product mi#, deli&ery channels and corporate structure to ser&e their functional role. Some of the products hich ere shunned by bankers and ere treated as inflationary F? years ago in nature like housing loan, consumer durables finance hich other ise ere the prerogati&e of the bank employees ha&e become targets of bank business and area of fierce competition and une#pected (uarters say co"operati&e banks too ha&e joined the fray. *ost of the %ndian banks ha&e been retail banks in their business composition. The term .Retail 5anking- encompasses &arious financial products 7different types of deposit accounts, housing"consumer"auto and other types of loan accounts, demat facilities, insurance, mutual funds, 'redit and +ebit 'ards, AT* and other technology"based ser&ices, stock"broking, payment of utility bills, reser&ation of rail ay tickets, etc.,8 catering to di&erse customer groups, offering a host of financial ser&ices, mostly to indi&iduals. Simply speaking, it takes care of the di&erse banking needs of an indi&idual. Retail banking refers to banking in hich banks undergo transactions directly ith consumers, rather than corporations or other banks. Ser&ices offered includeL sa&ings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

14

N11D O$ R1TAI< BANKIN#E

The reasons areL (1) %ntroduction of Technology6 (2) increased competition among different types of banks, 7M8 Opening of ne generation pri&ate banks,

7;8 %n&iting of more foreign banks in post 1TO era, 768 focus on producti&ity and profitability, 7N8 deregulation of interest rates, 7E8 dri&e to ards lo Don"Performing Assets,

7G8 tilt to ards more consumerism and life style spending by orking J middle class, 7:8 %nno&ation of ne products and ser&ices,

79?8 %mplementation of Prudential Dorms, Risk *anagement and A0* mechanisms, 7998 'losure J re"locating of loss making branches, 79F8 Ooluntary Retirement of surplus staff, 79M8 Sourcing of cheaper funds by corporate clients from global markets. 8,.; Re9i9al of mutual fund market6 8,B; Opening up of in"uran%e market6 8,C; Re9italiGing of "to%k market6 8,?; in%rea"e in t e life-"pan eHpe%tan%& due to modern ealt %are fa%ilitie"6 8,D; In%rea"ing %ontribution 8o9er B+ per %ent; to #D0 from t e Ser9i%e" "e%tor6 8,A; 5 ange in #o9ernment poli%& to!ard" $DI in retail "e%tor6

15

$orm" of Retail Banking ,; 5ommer%ial bank"E %n retail banking, the commercial bank offer &arious types of
ser&ices they accept sa&ings and current depositsC and grant personal loans to the customers in the form of housing loans ,education loan, consumer loans, tra&el loans, credit card loans ,car loans ,etc .

*; 5ommunit& de9elopment %orporationE bank"sponsored financial institution,

also called a community de&elopment corporation, making business loans and mortgages in economically distressed communities. 'ommunity de&elopment banks are backed by federal deposit insurance and may recei&e start up capital from federal grants or from banks and sa&ings associations.

@; 0ri9ate Bank"E pri&ate banks are banks that are not incorporated. A non"
incorporated bank is o ned by either an indi&idual or a general partner Pas ell as the entirety of the sole"proprietor-s J general 3partner-s- assets. Pri&ate bank and pri&ate banking can also refer to non"go&ernment o ned banks, are pre&alent in communist, socialist and some democratic state in the F?th century. hich ith limited partner. %n any such case, the creditor can look to both the Pentirety of the bank-s assets

.; Sa9ing" bank"E A bank that recei&es and in&ests the sa&ings of pri&ate depositors
and pays interest on the deposits.

T&pe" of retail banking produ%t"E

5anks are slo ly mo&ing to ards becoming .one step shops- or financial supermarkets, hich cater to all kinds of financial products, ranging from traditional asset and liability products, to comple# in&estment products. +eposits and loan form the traditional products of banks, hich most customers are already familiar ith. 5ut ith the changing demographic and socio"economic situation, today-s consumer has e&ol&ed and is ready to in&est in products that ha&e higher risk le&els. %ncreased a areness about different in&estment a&enues and their respecti&e returns is another factor that has influenced a shift to ards &arious in&estment products. To cater to these consumer groups, banks ha&e e#panded their portfolio.

16

0rodu%t" in Retail Banking Product category 0iability Products ,eneric Products 798 Sa&ing accounts 7F8Do"files accounts 7M8'urrent accounts 7;82i#ed deposits accounts Asset Products 768Recurring deposits 798$ousing 0oans 7F8Personal 0oans 7M8Hducation 0oans 7;8,old loans 7680oans to senior citi!ens 7N8Property and mortgage loans 7E8Oehicle loans 'redit 'ardsJ+ebit cards %n&estment Products 7G8Agricultural loans 798'redit 'ards 7F8+ebit cards 798%nsurance products 7F8Pension plans 7M8*utual funds

17

Opportunitie" and 5 allenge" of Retail Banking in India

Retail banking has immense opportunities in a gro ing economy like %ndia. As the gro th Story gets unfolded in %ndiaC retail banking is going to emerge a major dri&er. $o the orld &ie does us< 5R%' Report talks %ndia as an economic superpo er. A. T. )earney, a

global management consulting firm, recently identified %ndia as the @second most attracti&e retail destination@ of M? emergent markets. The rise of the %ndian middle class is an important contributory factor in this regard. The percentage of middle to high income %ndian households is e#pected to continue rising. The younger population not only ields increasing purchasing po er, but as far as ith more liberal attitudes ac(uiring personal debt is concerned, they are perhaps more comfortable than pre&ious generations. %mpro&ing consumer purchasing po er, coupled to ard personal debt, is contributing to %ndia=s retail banking segment. The combination of the abo&e factors promises substantial gro th in the retail sector, hich at present is in the nascent stage. +ue to bundling of ser&ices and deli&ery channels, the areas of potential conflicts of interest tend to increase in uni&ersal banks and financial conglomerates. Some of the key policy issues rele&ant to the retail banking sector areL financial inclusion, responsible lending, and access to finance, long"term sa&ings, financial capability, consumer protection, regulation and financial crime pre&ention.

5 allenge" for t e indu"tr& and it" "take older"

2irst, retention of customers is going to be a major challenge. According to a research by Reich held and Sasser in the $ar&ard 5usiness Re&ie , 6 per cent increase in customer retention can increase profitability by M6 per cent in banking business, 6? per cent in insurance and brokerage, and 9F6 per cent in the consumer credit card market. Thus, banks need to emphasi!e retaining customers and increasing market share. Second, rising indebtedness could turn out to be a cause for concern in the future. %ndia=s position, of course, is not comparable to that of the de&eloped H#pressing concerns about the high gro th and increased the risk orld here household debt as a proportion of disposable income is much higher. Such a scenario creates high uncertainty. itnessed in the consumer credit segments the Reser&e 5ank has, as a temporary measure, put in place risk containment measures eight from 9?? per cent to 9F6 per cent in the case of consumer 18

credit including personal loans and credit cards 7*id"term Re&ie ?68.

of Annual Policy, F??;" ith AT*

Third, information technology poses both opportunities and challenges. H&en

machines and %nternet 5anking, many consumers still prefer the personal touch of their neighborhood branch bank. Technology has made it possible to deli&er ser&ices throughout the branch bank net ork, pro&iding instant updates to checking accounts and rapid mo&ement of money for stock transfers. $o e&er, this dependency on the net ork has brought %T department-s additional responsibilities and challenges in managing, maintaining and optimi!ing the performance of retail banking net orks. %llustrati&ely, ensuring that all bank products and ser&ices are a&ailable, at all times, and across the entire organi!ation is essential for today=s retails banks to generate re&enues and remain competiti&e. there are net ork management challenges, 5esides, hereby keeping these comple#, distributed

net orks and applications operating properly in support of business objecti&es becomes essential. Specific challenges include ensuring that account transaction applications run efficiently bet een the branch offices and data centers. 2ourth, )Q' %ssues and money laundering risks in retail banking is yet another important issue. Retail lending is often regarded as a lo in the bid for ne documents they risk area for money laundering because of the perception of the sums ai&ed business. 5anks must also consider seriously the type of identification ill accept and other processes to be completed. The Reser&e 5ank has in&ol&ed. $o e&er, competition for clients may also lead to )Q' procedures being

issued details guidelines on application of )Q' norms in Do&ember

$uture of retail banking6 t e ma:or attribute" of t e " ape of t ing" to %ome in t i" "e%tor
2irst, customer ser&ice should be the be"all and end"all of retail banking. The other day a document released by the 5ritish 5ankers Association, entitled U) Retail 5anking *anifestoL addressing the challenges that lie ahead for the industry and its stakeholders on September F:, F??; came to my notice. This document analy!ed the key policy issues rele&ant to the retail banking sector and highlighted the role of financial inclusion, responsible lending, access to finance, and consumer protection. %t is in this conte#t that that one is reminded of the needs to de&elop the standards and codes for banking. The contribution of the 'ommittee on Procedure / Performance Audit on Public Ser&ices 19

7'PPAPS8 7'hairmanL Shri S.S. Tarapore8 has been in&aluable and has pro&ided great insight. 5ased on the recommendation of the 'PPAPS, the Annual Policy Statement for F??6"?N announced the decision to set up an independent 5anking 'odes / Standards 5oard of %ndia on the model of the mechanism in the U) in order to ensure that comprehensi&e code of conduct for fair treatment of customers is e&ol&ed and adhered to. The codes and standards, together particular. The codes ith the institutional mechanism to monitor them, are e#pected to enhance the (uality of customer ser&ice, to the indi&idual customer in ill bring about greater transparency in the system and also tackle ould function as an industry" ide ith the banking codes. the issue of information asymmetry. The 5oard The codes

atchdog of the banking code and ensure that the banks comply

ould establish the banking industry=s key commitments and obligations to

customers on standards of practice, disclosure and principles of conduct for their banking ser&ices. The 5oard ill monitor compliance ith the 'odes by the affiliated banks. Second, sharing of information about the credit history of households is e#tremely important as far retail banking is concerned. Perhaps due the confidential nature of banker"customer, banks ha&e a traditional resistance to share credit information on the client, not only ith one another, but also across sectors. ,lobally, 'redit %nformation 5ureaus ha&e, therefore, been set up to function as a repository of credit information " both current and historical data on e#isting and potential borro ers. The database maintained by these institutions can be accessed by the lending institutions. 'redit 5ureaus ha&e been established not only in countries ith de&eloped financial systems but also in countries ith relati&ely less de&eloped financial markets, such as, Sri 0anka, *e#ico, 5angladesh and the Philippines. %n %ndian case, the 'redit %nformation 5ureau 7%ndia8 0imited 7'%5%08, incorporated in F???, aims at fulfilling the need of credit granting institutions for comprehensi&e credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borro ers. At the same time banks must e#ercise due diligence before declaring a borro er as defaulter. Third, outsourcing has become an important issue in the recent past. 1ith the increasing market orientation of the financial system and to cope ith the competition as also to benefit from the technological inno&ations such as, e"banking, the banks are making increasing use of @outsourcing@ as a means of both reducing costs and achie&ing better efficiency. 1hile outsourcing does ha&e &arious cost ad&antages, it has the potential to transfer risk, management and compliance to third parties 20 ho may not be regulated. A

recent 5%S Report on @Outsourcing in 2inancial Ser&ices@ de&eloped some high"le&el principles. A basic re(uirement in this conte#t is that a regulated entity seeking to outsource acti&ities should ha&e in place a comprehensi&e policy on outsourcing including a comprehensi&e outsourcing risk management programmer to address the outsourced acti&ities and the relationship ith the ser&ice pro&ider. Application of these principles in hole story of retailing one the %ndian conte#t is under consideration. 2inally, retail banking does not refer to lending only. %n the should not forget the role played by retail depositors. The homemaker, the retail shop keeper, the pensioners, self"employed and those employed in unorgani!ed sector " all need to get a place in the banks. %t is in this backdrop that the Annual Policy for F??6"?N pointed out issues relating to financial e#clusion and had announced that the R5% implement policies to encourage banks disincenti&ising those be monitored to assess hich pro&ide e#tensi&e ser&ices ould hile

hich are not responsi&e to the banking needs of the community, hether there is any denial, implicit or e#plicit, of basic banking their e#isting

including the underpri&ileged. 2urthermore, the nature, scope and cost of ser&ices need to ser&ices to the common person and banks ha&e been urged to re&ie practices to align them ith the objecti&e of financial inclusion.

21

OR#ANISATION INTROD35TION
KOTAK MAHINDRA #RO30
)otak *ahindra is one of %ndia=s leading financial conglomerates, offering complete financial solutions that encompass e&ery sphere of life. 2rom commercial banking, to stock broking, to mutual funds, to life insurance, to in&estment banking, the group caters to the financial needs of indi&iduals and corporate. The group has a net orth of o&er Rs. 6,N?: crore, employs around 9E,9?? people in its

&arious businesses and has a distribution net ork of branches, franchisees, representati&e offices and satellite offices across M;; cities and to ns in %ndia and offices in 0ondon, De Qork, +ubai, San 2rancisco, Singapore and *auritius. The ,roup ser&ices around M.N million customer accounts.

KOTAK MAHINDRA INITIATORS

MR' 3DA> KOTAK 12153TI(1 (I51 5HAIRMAN 4 MANA#IN# DIR15TOR 3da& Kotak is an %ndian businessman. $e is the &ice"chairman and managing director of )otak *ahindra 5ank. $e o ns a 6?B stake in )otak *ahindra 5ank, and runs. 2orbes estimated his year earlier. %n F??N he ended a 9; year partnership F6B stake in t o subsidiaries for >EF million. $e is an alumnus of the prestigious Ramnalal 5ajaj %nstitute of *anagement Studies, *umbai and Sydenham 'ollege, *umbai. hich he founded ealth to be >F.F billion in F??E, up from >9.9 billion the ith ,oldman Sachs by ac(uiring its

MR' SHI(A7I DAM

MANA#IN# DIR15TOR6 OM KOTAK MAHINDRA <I$1 INS3RAN51 Shi&aji +am 5.'om., A%'1A, A'A, and A'S are presently the *anaging +irector of O* )otak *ahindra 0ife %nsurance 'ompany 0imited, a subsidiary company, in the business of life"insurance of )otak *ahindra 5ank 0imited. *r. +am has been a +irector of )otak 22

*ahindra Prime 0td. since +ecember FF, F??6. $e ser&es as a +irector of )otak *ahindra 5ank 0imited 72ormerly kno n as )otak *ahindra 2inance 0imited8. *r. +am has a strong accounting and cost accounting background and has o&er F9 years e#perience, of hich 9N years ha&e been ith the )otak *ahindra group. $e has successfully handled &arious assignments such as corporate finance, proprietary in&estments, in&estment banking and operating management in the ,roup.

MR' 5' 7A>ARAM

12153TI(1 DIR15TOR KOTAK MAHINDRA BANK' $olds a postgraduate diploma in *anagement from %%*, 'alcutta, and has o&er F6 years= e#perience in the field of 2inance. *r. '. Rayaram began his career nearly t o decades ago in the 2inancial Ser&ices industry. $e joined the )otak *ahindra ,roup in 9::?, before hich he had orked ith se&eral reno ned organi!ations such as %'%'% 0imited hich as then as the and A. 2. 2ergusson. At )otak *ahindra, besides being instrumental in setting up the car finance business, he as also responsible for the distribution business, called 2%'O*. +uring the period 9::? to 9::6, he *anaging +irector of )otak Securities 0imited. as responsible for the businesses of

financing against shares and proprietary in&estments. 2rom 9::6 to 9:::, he

MR' D110AK #30TA

12153TI(1 DIR15TOR Deepak #upta is the H#ecuti&e +irector of )otak *ahindra 5ank and heads the commercial banking operations and retail business. +eepak joined )otak *ahindra 2inance 0imited in 9::F as a Senior *anager and mo&ed up the corporate ladder to head the financing function, as Oice President. %n 9::N he assumed the role of 'HO of )otak *ahindra Primus 0imited. %n October 9:::, he as ele&ated to the position of H#ecuti&e +irector of )otak *ahindra 2inance 0imited, heading the Asset 2inance business of the group. $e also continued to o&ersee the business at )otak *ahindra Primus 0imited. +eepak started his career in the consultancy di&ision of A.2.2erguson, soon after his post graduation in business administration. +eepak is a graduate in Hlectronics Hngineering and a postgraduate in *anagement from the %ndian %nstitute of *anagement, Ahmadabad. 23

#RO30 5OM0AN> MO(1M1NT

A huge pool of talented employees resides under our )otak group umbrella. To assist such talent in reaching their professional goals and meeting their career aspirations allo them the opportunity to mo&e across &arious businessJ industry &erticals. group company mo&ement and help employees manage their e

%n endea&our to allo

career, )otak ha&e introduced an %nternal Rob Posting process. At )otak *ahindra 5ank 0imited, they ha&e branded this process as )otak 2ast Track. True to its name, )otak 2ast Track opens up a plethora of opportunities for employees across )otak &ehicles. Open positions are made &isible to employees, thereby encouraging those eligible for a job change. )otak 2ast Track allo s for an e(uitable system of applying and getting hold of multiple roles across the group=s businesses and ensures a smooth lateral mo&ement across the )otak umbrella.

#RO30 5OM0ANI1S
KOTAK MAHINDRA BANK <TD'

The )otak *ahindra ,roup=s flagship company, )otak *ahindra 2inance 0td established in 9:G6,

hich

as

as con&erted into a bank " )otak *ahindra 5ank 0td in *arch F??M

becoming the first %ndian company to con&ert into a 5ank. %ts banking operations offer a 24

central platform for customer relationships across the group=s &arious businesses. The bank has a presence in the 'ommercial Oehicles, Retail 2inance, 'orporate 5anking, Treasury and $ousing 2inance. Registered Office addressL MNJMG A, Dariman 5ha&an, FFE, Dariman Point, *umbai 3 ;?? ?F9 Tel. Do. 7?FF8 6N6G99?? 1ebsiteL .kotak.comJkotakbanksiteJinde#.htm

KOTAK MAHINDRA 5A0ITA< 5OM0AN> <TD'

)otak %n&estment 5anking 7)%58 is %ndia=s 2S%premier %n&estment 5ank

)otak %n&estment 5anking 7)%58 and )otak %nstitutional H(uities represent the securities business of the )otak *ahindra ,roup 7)%8, )otak %n&estment 5ank is a full ser&ice %n&estment 5ank bringing to its clients the global reach and the local kno ledge and skills of )otak *ahindra. As a full ser&ice %n&estment 5ank, )otak %n&estment 5anking-s core business areas include H(uity %ssuances, *ergers / Ac(uisitions, Ad&isory Ser&ices and 2i#ed %ncome Securities and Principal 5usiness. %ts strength lies in understanding the clients= businesses backed by a strong research team and an e#tensi&e distribution net ork, hich spans a ide &ariety of in&estors ith the across the country. %t is also the first %ndian %n&estment 5ank to be registered Securities / 2utures Authority in the U) 7through our Dational Association of Securities and +ealers in the USA. %t-s the first %ndian %n&estment 5ank to be appointed by the ,o&ernment of %ndia as a 'o" lead *anager in their international di&estment of ,as Authority of %ndia 0td through a ,+R )otak %n&estment 5ank today pro&ide full ser&ice to its clients based either in %ndia or o&erseas. Registered Office addressL 5akhta ar, 9st floor, FF:, Dariman Point, *umbai 3 ;?? ?F9 Tel. Do. 7?FF8 6NM;99?? 25 offering. ell positioned in an increasing globali!e en&ironment to

holly o ned subsidiary8 and the

1ebsiteL

.kmcc.co.in

KOTAK MAHINDRA O<D M3T3A< <I$1 INS3RAN51 <TD'

)otak *ahindra Old *utual 0ife %nsurance 0td. is a joint &enture bet een )otak *ahindra 5ank 0td. 7)*508, and Old *utual plc. Aimed at helping customers take important financial decisions at e&ery stage in life by offering them a insurance products, to make them financially independent. Registered Office addressL :th floor, ,odrej 'oliseum, 5ehind H&rard Dagar, Sion 7H8, *umbai 3 ;?? ?FF, %ndia ide range of inno&ati&e life

KOTAKIS INT1RNATIONA< B3SIN1SS

1ith a presence outside %ndia since 9::;, the international subsidiaries of )otak *ahindra 5ank 0td. operating through offices in 0ondon, De Qork, +ubai, San 2rancisco, Singapore and *auritius speciali!e in pro&iding ser&ices to specialist o&erseas in&estors seeking to in&est into %ndia. %n&estors can access the asset management capabilities of the international subsidiaries through funds domiciled outside %ndia. They offer asset management ser&ices to institutions and high net outside %ndia through a range of offshore %ndian funds, as orth indi&iduals based ell as through specific

ad&isory and discretionary in&estment management mandates for institutional in&estors.

The offerings are differentiated %ndia in&estment solutions that span all major asset classes including listed e(uity, pri&ate e(uity and real estate. The subsidiaries also lead manage and under rite international issuances of securities. 1ith its commendable track record, large presence on the ground and a team of dedicated staff in %ndia, )otak-s international arm is suitably positioned for managing assets in the %ndian 'apital markets. The international arm of )otak operates through the belo S )otak *ahindra 7U)8 0imited 7)*U)8 S )otak *ahindra %nc. 7)* %nc8 26 three subsidiariesL

S )otak *ahindra %nternational 0imited 7)*%08 1ebsiteL httpLJJin&estindia.kotak.com Registered Office addressL Kotak Ma indra 83K; <imited Fnd 2loor, Portsoken $ouse, 966"96E, *inories, 0ondon H'MD90S United )ingdom PhoneL T;; F?E :EE N:??

KOTAK S153RITI1S <TD'

)otak Securities 0td., subsidiary of )otak *ahindra 5ank 0td., is one of %ndia=s largest brokerage and distribution house ith a market share of around G.6 B as on M9st *arch. )otak Securities 0td. has been the largest in %PO distribution. )otak Securities has been graced Portfolio *anagement H(uities. )otak Securities 0td is also a depository participant ser&ices ith Dational Securities +epository ith &arious accolades, the latest being 2inance Asia

A ard 7F??N8 " 5est 5roker in %ndia and Huro money A ard 7F??N8 " 5est Pro&ider of

0imited 7DS+08 and 'entral +epository Ser&ices 0imited 7'+S08, pro&iding dual benefit herein the in&estors can use the brokerage ser&ices of the company for e#ecuting the transactions and the depository ser&ices for settling them. )otak Securities has 9:6 branches ser&icing more than F,F?,??? customers and a co&erage of FM9 'ities. )otaksecurities.com, the online di&ision of )otak Securities 0imited offers %nternet 5roking ser&ices and also online %PO and *utual 2und %n&estments. )otak Securities 0imited manages assets o&er Rs. F6?? 'rore of Assets under *anagement 7AU*8. The portfolio *anagement Ser&ices pro&ide top class ser&ice, catering to the high end of the market. Portfolio *anagement from )otak Securities comes as an ans er to those ho ould like to gro e#ponentially on the crest of the stock market, ith the backing of an e#pert. 27

Registered Office addressL 5akhta ar, 9st floor, FF:, Dariman Point, *umbai 3 ;?? ?F9 Tel. Do. 7?FF8 6NM;99?? 1ebsiteL .kotaksecurities.com

KOTAK MAHINDRA ASS1T MANA#1M1NT 5OM0AN> <TD'

)otak *ahindra *utual 2und 7)**28 is managed by )otak *ahindra Asset *anagement 'ompany 0td. a holly o ned subsidiary of )otak *ahindra 5ank 0td. )otak *ahindra *utual 2und launched its Schemes in +ecember 9::G and today manages o&er Rs.9M,NM6.GM 'rore of assets from close to ;,M;,NFF in&estors in &arious schemes. Registered Office addressL 5akhta ar, 6th floor, FF:, Dariman Point, *umbai 3 ;?? ?F9 Tel. Do. 3 7?FF8 FF?F;GG; 1ebsiteL .kmutual.com

KOTAK STOR>
The )otak *ahindra ,roup 0imited. This company as born in 9:G6 as )otak 'apital *anagement 2inance

as promoted by Uday )otak, Sidney A. A. Pinto and )otak /

'ompany. %ndustrialists $arish *ahindra and Anand *ahindra took a stake in 9:GN, and that=s hen the company changed its name to )otak *ahindra 2inance 0imited. Since then it=s been a steady and confident journey to gro th and success. ,ADC ,AD? ,AA+ ,AA, ,AA* ,AAB Kotak Ma indra $inan%e <imited "tart" t e a%ti9it& of Bill Di"%ounting )otak *ahindra 2inance 0imited enters the 0ease and $ire Purchase market The Auto 2inance di&ision is started The %n&estment 5anking +i&ision is started. Takes o&er 2%'O*, one of %ndia=s largest financial retail marketing net orks Hnters the 2unds Syndication sector 5rokerage and +istribution businesses incorporated into a separate company " )otak Securities. %n&estment 5anking di&ision incorporated into a separate 28

,AAC

company " )otak *ahindra 'apital 'ompany The Auto 2inance 5usiness is hi&ed off into a separate company " )otak *ahindra Prime 0imited 7formerly kno n as )otak *ahindra Primus 0imited8. )otak *ahindra takes a significant stake in 2ord 'redit )otak *ahindra 0imited, for financing 2ord &ehicles. The launch of *atri# %nformation Ser&ices 0imited marks the ,roup=s entry into information distribution. Hnters the mutual fund market ith the launch of )otak *ahindra Asset *anagement 'ompany. )otak *ahindra ties up ith Old *utual plc. for the 0ife %nsurance business. .kotaksecurities.com8.

,AAD *+++

)otak Securities launches its on"line broking site 7no Oenture 'apital 2und. *atri# sold

'ommencement of pri&ate e(uity acti&ity through setting up of )otak *ahindra *++, *++@ *++. *++B to 2riday 'orporation

0aunches %nsurance Ser&ices )otak *ahindra 2inance 0td. con&erts to a commercial bank " the first %ndian company to do so. 0aunches %ndia ,ro th 2und, a pri&ate e(uity fund. )otak ,roup realigns joint &enture in 2ord 'reditC 5uys )otak *ahindra Prime 7formerly kno n as )otak *ahindra Primus 0imited8 and sells 2ord credit )otak *ahindra. 0aunches a real estate fund 5ought the F6B stake held by ,oldman Sachs in )otak *ahindra 'apital 'ompany and )otak Securities

*++C

5OR0ORAT1 ID1NTIT>

29

The symbol of the infinity the infinite )a reflects global %ndian personality. The )a is uni(uely %ndian hile its cur&e forms the infinity sign, hich is uni&ersal. One of the basic e ha&e tenets of economists is that man-s needs are unlimited. The )a symboli!es that infinite number of ays to meet those needs.

MISSION
3nder"tand and a%ti9el& promote t e finan%ial intere"t" of our %lient"' 1e see your needs through your eyes. Qour ideas, e#pectations and personal situation form the basis of our counselling and ser&ice. 1e take time and care in the process of striking a balance bet een the feasible and the desirable, bet een the re(uired and the tolerable. 1e take your time too. %t is essential to understand each other. 1e build a relationship of mutual trust. 1e understand that it is the absolute returns and not relati&e return to some &olatile inde#, hich is important to our clients. 1e are committed to the safety of in&ested capital.

30

INSTIT3TIONA< B3SIN1SS J R1TAI< BANKIN#

INTROD35TION
)*50 recogni!es the need to de&elop publi% pri9ate partner" ip" to build a strong platform for economic and social gro th ithin the country. To fulfill this mission, it is there Hndea&our to assist the ,o&ernment and the Public Sector by pro&iding kno!ledgeba"ed ad9i"or& and finan%ial "olution" across ke& gro!t "e%tor", includingL

2ood / Agribusiness 0ife Sciences Technology %nfrastructure, comprising of rene able energy, education, healthcare and management ater

At )OTA) *A$%D+RA 5AD) 0td, teams of )no ledge 5ankers

ork

ith &arious

go&ernment ministries and departments, autonomous bodies and public sector enterprises at the 'entral, State and 'ity le&el to de&elop and implement policies, plans and programs for the effecti&e gro th of %ndia=s socio"economic infrastructure. Aim is to de&elop mutually beneficial business opportunities and trusted financial partner. Our Senior Relationship *anagers, ho ha&e e#tensi&e e#perience in orking closely ith institutional clients and be reliable

ith go&ernment organi!ations, collaborate closely

ith our Product *anagers to help

,o&ernment and %nstitutional organi!ations e&aluate their financial needs and pro&ide tailor"made financial solutions to best suit their re(uirements. So hether you are an offshore financial institution re(uiring financial ser&ices in the

Philippines, or a domestic financial institution re(uiring local andJor international ser&ices, they can tailor a specific package of ser&ices to suit your re(uirements. +esignated Relationship *anagers, skilled professionals ith a sound understanding of your industry, ill link you to )*50=s products, business specialists and orld ide net ork.

31

ORGANISATIONAL STRUCTURE
)otak *ahindra 5ank 0td. %nstitutional 5usiness 3 Retail 5ank has a &ery flat organi!ational structure. The President of the section chaired in *umbai head office. $e is also kno n as TAS' *anager of the section. Under that Uonal $eads are chaired at each !one head offices and these are assigned the post of Oice" presidents. They are the heads of se&eral states under each !one. Under each !onal head there are se&eral Area *anagers are there hich look after the acti&ities in sate ith the help of Relationship Officer. The Relationship Officer is in direct contact ith the institutions and look after

there account and different ser&ices pro&ided to the institution by bank.

32

ORGANISATION STRUCTURE

33

0ROD35TS O$ KOTAK MAHINDRA BANK IN R1TAI< BANKIN#E

'URRHDT A''OUDT SAO%D,S A''OUDT THR* +HPOS%T TRA+H 2%DAD'H +H*AT *UTUA0 2UD+ %DSUARADSH 'AR 2%DAD'H $O*H 0OADS 0OAD A,A%DST PROPHRTQ PHRSODA0 0OADS 'O**HR'%A0 OH$%'0H 2%DAD'%D, 7'O8 %D2RASTU'TURH 2%DAD'%D, TRA'TOR AD+ 2AR* HU%P*HDT 2%DAD'%D, SARA0 0OADS 1OR)%D, 'AP%TA0 0OADS )OTA) SH'UR%TQ 0T+ )OTA) *A$%D+RA-S %DTHRDAT%ODA0 5US%DHSS

34

53RR1NT A55O3NT
)otak *ahindra 5ank offers you unparalleled ad&antages ith its three 'urrent Account offerings. 1hether you ha&e a smallJ mid si!e business or you are an enterprise spread across multiple locations in the country, you ould find a 'urrent Account that=s just designed for you. 1ith features ranging from 2ree ++s, 2ree 'he(ue 'ollection, 2ree At "Par 'he(ue facility to 2ree Trading Account / free +emat Account, and moreV

,' 1D#1 53RR1NT A55O3NT One needs a ell e(uipped bank account to keep pace ith you in all your business endea&ours. )*50 offer you the )otak Hdge 'urrent Account, armed ith )otak Acti&e *oney and our entire gamut of 5anking Pri&ileges, pro&iding you that e#tra edge to get ahead. The feature rich )otak Hdge 'urrent Account is the ideal ay to make your money ork harder. *' 0RO 53RR1NT A55O3NT

One needs a ell e(uipped bank account to keep pace ith you in
the e&er changing business scenario. 1e offer you the )otak Pro 'urrent Account, armed ith )otak Acti&e *oney, as ell as an entire gamut of 5anking Pri&ileges and =user"friendly= 'on&enience 5anking facilities. The feature rich )otak Pro 'urrent Account is the ideal ay to make your money ork harder.

@' A51 A55O3NT Qou need a ell e(uipped bank account to keep pace ith you in the e&er changing business scenario. )*50 offers you the )otak Ace 'urrent Account, armed ith 5usiness benefits and e#clusi&e Ace Pri&ileges and an entire gamut of banking con&eniences especially designed for you. The feature rich )otak Ace Account is the ideal ay to make your money ork harder. 35

Ke& feature K benefit"E

*ulti 'ity 5anking Acti&e *oney 2ree +emand +rafts and Pay Orders At"par 'he(ues get free 'he(ue 'ollection 2ree Hlectronic 2und Transfer 2ree 5usiness +ebit 'ard *obile 5anking and Alerts 2ree 'ash +eposit F; # E Phone 5anking Det 5anking

36

SA(IN#S A55O3NT
Sa&ings Accounts are designed to ensure e recei&e the benefits of (uick / con&enient banking transactions along ith options for us money to earn high returns. The sa&ings account goes beyond the traditional role of sa&ings, to pro&ide us a range of ser&ices from funds transfer options to online payments of bills to attracti&e returns earned through a comprehensi&e suite of in&estment options.

1e ha&e a number of &ariants of our sa&ings accounts customi!ed to suit your indi&idual needs so pick the one that matches your re(uirements / sit back to enjoy the )otak e#perienceV 1e can choose any sa&ing account as per our needL ,' A%e Sa9ing" A%%ount *' 0ro Sa9ing" A%%ount @' 1dge Sa9ing" A%%ount .' No9a Sa9ing" A%%ount B' 5la""i% Sa9ing" A%%ount " a&ailable only in select locations C' 1a"& Sa9ing" A%%ount 8No $rill" A%%ount; ?' 5orporate Salar& A%%ount

37

9. Ace Sa&ing Accounts )ey 2eatures

2ree access at all domestic and international O%SA AT*s 2ree in&estment account +edicated relationship manager Online trading account At"$ome ser&ices

F. Pro Sa&ing Accounts )ey 2eatures

2ree AT* access all domestic O%SA AT* net ork 2ree in&estment account 4uick and easy funds transfer +edicated relationship manager

M. Hdge Sa&ing Accounts )ey 2eatures

1ide AT* access 2inancial payments facilitated through the sa&ings account 4uick and easy funds transfer

;. Do&a Sa&ing Accounts )ey 2eatures

,reater AT* access through the )otak *ahindra 5ank +ebit 'ard 2inancial payments facilitated through the sa&ings account 4uick and easy funds transfer 38

6. 'lassic Sa&ing Accounts )ey 2eatures

2ree AT* access all domestic O%SA AT* net ork 2ree in&estment account 4uick and easy funds transfer Acti&e *oney +edicated relationship manager

N. Hasy Sa&ing Accounts 7Do 2rills Account8

)ey 2eatures

Hasy to maintain, hassle"free sa&ings a&enue

E. 'orporate Salary Account )ey 2eatures

Uero 5alance account Personali!ed At Par 'he(ue book Reimbursement Account %n&estment Account Office 5ankingI 2ree +emand +rafts

TRAD1 $INAN51
39

9. HWPORT F. %*PORT M. %D0AD+ ;. 5AD) ,UARADTQ 6. 2OR1AR+ 'ODTRA'T N. RH*%TTAD'HS

,' 120ORT A+O%S%D, HWPORT HWPORT 5%00 DH,OT%AT%OD HWPORT 5%00 PUR'$AS%D, HWPORT 5%00 'O00H'T%OD"DOD 0J' HWPORT 0J' 5%00 +%S'OUDT%D, PA')%D, 'RH+%T

A+O%S%D, HWPORTL The basic responsibility of an ad&ising bank is to ad&ise the credit recei&ed from its o&erseas branchJcorrespondent only after checking of the apparent authenticity of the credit established by the issuing bank. Though the process is fairly simple, as a profession ser&ice to the e#porter.

HWPORT 5%00 DH,OT%AT%OD

H#port finance

Pre shipment finance

40

Post shipment finance

Post shipment finance is defined as Pany loan or ad&ance granted or any other credit pro&ided by an institution to an e#porter of goods from %ndia from the date of e#tending the credit after shipment of the goods to the date of reali!ation of e#ports proceeds and includes any loans or ad&ance granted to the e#porter, in recei&ing from the go&ernment of %ndia. Post shipment finance is al ays e#tended against .H&idence of shipment of goods or supplies made to designate agencies. Post shipment finance, though it is orking capital finance can be short term finance or a long term finance depending upon the payment terms offered by %ndian e#porter to o&erseas buyers. %n case of cash e#ports, minimum period allo ed for reali!ation of e#port proceeds is N months from the date of shipment. 5anks can e#tend post shipment finance at a lo er date 7up to normal transit period or nation due date8 hich includes the normal transit period Tusage period of ma#imum of 9G? days. The R5% has made it mandatory for all banks to pro&ide a minimum of 9FB of there net bank credit to the e#port sector. This finance has to be pro&ided at a rate of interest. Post shipment finance is of t o types. 9. ith 0J' 7negotiable8 F. ithout 0J' 7purchase8 Pre shipment finance being purpose is oriented is granted for a specific purpose of procuring ra materialJpurchasingJmanufacturingJ processing JtransportingJ arehousing Jpacking and shipping the goods HWPORT 5%0 PUR'$ASH7 ithout letter of credit 8LPurchase of e#port bill is done hen the e#porter is kno n e#porter and the approaches the bank is sure about the credentials of the e#porter and is sure that the e#porter ould repay the loan. Do purchase transaction is done for a non customer Purchase funding is done ithout the demand of an 0' from the importer bank, because the bank takes risk against the e#porter 7the bank sets a credit limit for the e#porter, and the bank has resource against the e#porter. A purchase transaction can also be of t o typesL o At sight o $a&ing a usance period

41

A purchase transaction is similar to a negotiation Jdiscounting transaction, e#cept that the document ould not be accompanied by the letter of credit .if the money does not come from the importer-s bank then the money is reco&ered from the e#porter.

HWPORT 5%0 UD+HR 'O00H'T%OD 7non 0'8L Sometimes the e#porter, in order to secure his position sends the documents to importer-s bank for collection under specific instructions.

Under such an agreement the e#porter-s bank ould send the documents relating to the shipment of goods from importer-s correspondent bank .As per the instruction, correspondent bank ould not be allo ed to release the documents to the importer. These documents usually consist ofL %. 5ills of e#change %%. bills of loading %%%. original in&oice of goods shipped %O. packing list of goods etc %n bills for collection the e#porter-s bank does not assume any payment obligation on the behalf of buyer to seller. $o e&er the documents are mo&ed through the banking channel 72rom seller-s bank to buyer-s bank8.The document as ell as title to the goods are released to the buyers only after payment from buyer 7documents against payment dJp8 or after acceptance from the buyer 7document against acceptance8 Step" of %olle%tion %. 0odgmentL +eals ith first half of process. %n this documents or relie&ed by )otak mahindra bank and transaction details are logged into system. %%. Reali!ation L %n the second half of the process, in&ol&ing recei&ing payment from the import and passing it on to the e#porter bank

PA')%D, 'RH+%T 2A'%0%TQ L Packing credit facility is a loan granted or ad&ance granted or any other credit pro&ided by an institution to an e#porter for financing of goods , on the basis of letter credit opened in his fa&or by an importer of goods outside %ndia ,or an irre&ocable order for the e#port of goods from %ndia 42

Packing credit finance being purpose is oriented is granted for a specific purpose of procuring ro materials Jpurchasing Jmanufacturing processing JtransportingJ arehousing Jpacking and shipping the goods . Packing credit is basically a short term finance hich is oriented at a concessional rate of interest determined by R5% .The banks ha&e been gi&en permission to grant packing credit for a period up to FE? days .Any further e#tensions re(uires permission of R5%. 1hen the packing credit limit is sanctioned, it is in the form of o&erall limit under hich the customer applies for release of indi&idual packing credit loans as and hen needed by them. %n case there is no o&erall limit, then e&ery indi&idual loan application must be preceded by completion of formalities. *' IM0ORT A+OAD'H RH*%TTAD'H +%RH'T %*PORT 5%00S %*PORT 'O00H'T%OD 5%00 %*PORT 0HTTHR O2 'RH+%T 5%00 UD+HR 0HTTR O2 'RH+%T

A+OAD'H RH*%TTAD'HL %n any foreign trade ,there is e#change of foreign currency either at the end of the transaction or a part of it may be called for in ad&ance .Sometimes ,as per the terms of trade or the agreement bet een both the parties ,some amount has to paid before the e#porter does the shipment of goods .This remittance of money by the importer to ards initiali!ing the import transaction in the re(uired foreign currency is kno n as ad&ance remittance

+%RH'T %*PORT 5%00SL 1hene&er, an importer in %ndia recei&es the import documents directly o&erseas e#porter, the e#porter may approach the bank for making payment against such document .2or the bank it is a case of direct import bill. %n such cases at the end of an import transaction, the importer deposits money and instruct the bank to remit the e#porter in the re(uired

43

currency. 2or affecting such a remittance he submits the re(uisite set of document, as re(uired under &arious Act /Regulations. %*PORT 'O00H'T%OD 5%00SL Under normal course of trade, the importer makes the payment after the goods ha&e been duly recei&ed by him in order to secure his position sends 7through his correspondent bank8 the documents to the importer-s bank for collection under specific instructions . Under such an arrangement, the importer-s bank 7here )otak mahindra8 ould recei&e the documents relating to the shipment of goods from the e#porter corresponding foreign bank. As per the instruction, )otak mahindra ould not be allo ed to release the documents to the importer till the time importer makes paymentJcon&eys his acceptance to pay on the maturity date for the in&oice &alue of goods. This document usually consists ofL o Original bills of loading o Original in&oice of the goods shipped o Packing list of the goods o %nsurance receipts etc

%n bills for collection the buyer-s bank does not assume any payment obligation on behalf of the buyer to the seller. $o e&er the document are mo&ed through the banking channel 7from seller-s bank to the buyer-s bank8.The documents as ell as the title to the goods are released to the buyer only after payment from buyer 7documents against paymentL +JP8 or after acceptance from the buyer 7document against acceptanceL +JA8.The entire collection transaction can be broken do n into t o stepsL 9. 0odgment F. Reali!ation %*PORT 0HTTHR O2 'RH+%TL +ocumentary credits, other ise popularly kno n as Pletter of creditX is a payment mechanism, idely used all o&er the orld for settlement of trade bet een the importer and e#porter. %t can be characteri!ed as 3Pan arrangement of making payment against stipulated documentsX.

44

%t is an arrangement hereby a bank, acting at the re(uest and on the instruction of a customer or on its behalfL " is to make a payment to or to the order of a third party 7beneficiary8 or is to accept bills of e#change 7drafts8 dra n by the beneficiary or " authori!ed another bank to effect such payment or to accept and pay such bills of e#change 7drafts8 or " authori!es another bank to negotiate against stipulated document pro&ided that the term are complied ith. %t can also be termed as, an undertaking to pay a third party at a gi&en date according to agreed stipulations and against presentation of documents, the counter &alue of the goods or ser&ice dispatched Jsupplied , rendered or other ise. PAn arrangement by means of hich a bank 7issuing bank8 acting at the re(uest of a customer7applicant8 ,undertakes to pay to a third 7beneficiary8 a predetermined amount by a gi&en date according to agreed stipulation and against presentation of stipulated documentsX Do%umentar& %redit 4 bank guarantee"- +ocumentary credits are similar to bank guarantees e#cept for the fact that bank guaranty credits are normally issued in situation of performance. 5%00 UD+HR 0HTTR O2 'RH+%TL After the process of opening an import 0J' on the re(uest of a customer is o&er and the 0J' is recei&ed by the e#porter bank. The e#porter dispatches the goods and submits the concerned document under that 0J' to the negotiating bank upon receipt of the document send it to the importers bank 7here )otak mahindra bank8 along ith there instruction. Such documents are termed as import bills under 0J'. The document recei&ed may be under usance basis or under sight basis as per terms of 0J'. %n the document are under usance basis, the set is deli&ered to the importer against his acceptance. %n case of sight basis the documents customer against payment of bill. On the due date irrespecti&e of hether the customer makes payment or not, the importers bank has to make the payment to the negotiating bank. ould be deli&ered to the

@' IN<AND

45

%D0AD+ 0HTTHR O2 'RH+%T 5%00S +%S'OUDT%D,A%DOO%'H 2%DAD'%D,

%D0AD+ 0HTTHR O2 'RH+%T L +ocumentary credits, other ise popularly kno n as Pletter of creditX is a payment mechanism, idely used all o&er the orld for settlement of trade bet een the importer and e#porter. %t can be characteri!ed as 3Pan arrangement of making payment against stipulated documentsX. %t is an arrangement hereby a bank, acting at the re(uest and on the instruction of a

customer or on its behalfL " is to make a payment to or to the order of a third party 7beneficiary8 or is to accept bills of e#change 7drafts8 dra n by the beneficiary or " authori!ed another bank to effect such payment or to accept and pay such bills of e#change 7drafts8 or " authori!es another bank to negotiate against stipulated document pro&ided that the term are complied ith. %t can also be termed as, an undertaking to pay a third party at a gi&en date according to agreed stipulations and against presentation of documents, the counter &alue of the goods or ser&ice dispatched Jsupplied , rendered or other ise. PAn arrangement by means of hich a bank 7issuing bank8 acting at the re(uest of a customer7applicant8 ,undertakes to pay to a third 7beneficiary8 a predetermined amount by a gi&en date according to agreed stipulation and against presentation of stipulated documentsX Do%umentar& %redit 4 bank guarantee"- +ocumentary credits are similar to bank guarantees e#cept for the fact that bank guaranty credits are normally issued in situation of performance. 5%00S +%S'OUDT%D,A%DOO%'H 2%DAD'%D, L

IN<AND BI<<E 'ommercial transactions ha&e normally N?":? days credit built in, in settlement of trade transactions bills of e#change ha&e been the most accepted form of payment mechanism for a &ery long time. 5ills of e#change is an instrument in li(uidity to the seller riting signed by its maker agreeing to make payment on a particular period to the buyer depending on the business cycle and pro&ide ho discounts the bills in the market for the bank it is a short term 46

finance and self li(uidating product, so capital is not blocked for a longer term. 5ills can be broadly classified intoL o DOD 0J' 5%00S o 0J' 5A')H+ 5%00S

o DOD 0J' 5%00SL 1hen the seller dra s a bills of e#change for a particular period hich is accepted buy the buyer for payment it is non 0J' bill, here the seller takes a risk on the buyer and allo s the credit period. %n the e&ent of dishonor the seller risks the payment.

%f the bank discounts such clean bills it is ith resource to the seller on hose behalf it has purchased the bill. The bank should assess the credit orthiness of the sellerC in the e&ent of dishonor the seller should pro&ide co&er to the bank to the e#tent of dishonor. IN(OI51 DIS5O3NTIN#E The bank finances the transaction based on accepted in&oices of acceptable corporate and discounts the recei&ables for the seller, this model in&ol&es high risk since the transaction is not backed by a bills of e#change. There should be ade(uate co&er from the seller in the e&ent of non payment by the buyer. The major risks in&ol&ed are the person accepting the in&oice may not be authori!ed and their actions cannot bind the company. The same in&oices can be accepted again resulting in double financing and if there are any rejection due to poor (uality or any dispute bet een buyer and seller can affect the repayment. The due date of payment is not sacrosanct, hereas in a bill of e#change the payment has to be made on the due date. <F5 BA5K1D BI<<SE 1here the seller does not ha&e the comfort le&el ith the buyer, he asks the buyer to establish an irre&ocable letter of credit in his fa&or from an acceptable bank ith the terms acceptable to him. Degotiation of such bills under 0J' is safer for the bank, here the documents are in conformity ith 0J' terms. 'are should be e#ercised to ascertain the authenticity of the 0J' and that documents are acceptable by the 0J' opening bank for payment. 5asic documentationL i. ii. 5ills of e#change Original in&oice co&ering the shipment 47

iii. i&. &. &i.

Transport document 7motor lorry receiptsJair ays bill etc 8 Packing J eight list 7 here applicable 8 Transit insurance7 here applicable 8 Hndorsed 7in lJc transaction 8

Parties in&ol&ed i. ii. iii. i&. &. &i. &ii. Applicant %ssuing bank Ad&ising bank 'onfirming bank Degotiating bank Reimbursing bank 5eneficiary

.' BANK #3ARANT> 8inland and foreign;E To facilitate gro th in trade and commerce promote project e#port bank issue bank guarantees, large amounts hich are irre&ocable and payable on demand. 5ank guarantees are ithout blocking his orking capital, the beneficiary is comfortable ith the accepted freely in the business community and help the client to enter into transactions of guaranty issued by an acceptable bank in lieu of cash security 5anks promote bank guarantees because it does not consume capital and it-s a good source for building fee incomeC ho e&er care is taken since bank guarantees are issued for long tenures. %ndian contract act-9GEF deals ith the legal pro&isions relating to bank guarantees 7sec 9F6 to 9;E8,section 9FN of the said of act defines a contract of guaranty as .a contract to perform the promise or discharge the liability of a third person in case of his default-. The bank becomes a Pprincipal debtorX and becomes liable for the amount guaranteed and till the bank guarantee e#pires. 5ank guarantees" i. 2inance 48 hile setting up credit lines

ii.

Performance These are issued forL "Harn money deposit "security deposit "ad&ance payment guarantees "deferred payment guarantees "guarantee customs duties and other disputed statutory liabilities "guarantees fa&oring stock e#change Bank guarantee"E +eferred payment guarantees the bank" the bank guarantees payment by his customer of the amount to be paid, 5id bond guarantees" guarantee along hich has been spread o&er a period of time. +eferred payment guarantees are normally issued for purchase of machinery or goods on credit. hen our customer bids for a tender process he has to submit a ith the tender. This type of guarantee is called a bid bond guarantee.

This guarantee is called a bid bond guarantee. This guarantee is issued to support the interest of the applicant to ards the tender process, on opening of the tenderC the guarantee gets discharged by beneficiary if the client is not a arded the contract. %f the client is re arded the contract and is not in a position to furnish other re(uirements to commence the project in that e&ent the bid bond guarantee is enforced by the beneficiary. *ost of the beneficiary of bank guarantees are go&ernment, (uasi go&ernment and public sector understanding and public sector understandings and they insist on issue of bank guarantees in there prescribed format, care should be taken by the bank for any onerous clauses in the te#t of the guarantee risk in issue of guarantees 5ank guarantees are normally issued in fa&our of customer, central e#ercise, sales ta#, electricity, insurance companies, municipalities, public orks department, state and central go&ernment bodies, large public sector undertakings and stock e#changes. 1hen guarantee are issued to customer ha&ing no credit lines,9??Bcash margin should be taken for inland guarantees and a minimum of 9N?B cash margin for foreign guarantees to co&er e#change risk, hen guarantees are issued for disputed liability ai&ed under sanction terms for issue of 9??B cash margin is taken unless specifically guarantee is issued to such customer. hich can bind the bank beyond the normal

such guarantees. 1e ha&e to obtain an omnibus counter indemnity e&ery time a

49

$oreign guarantee"E To promote foreign trade, banks can issue foreign guarantees for trade transaction facilitate our clients to participate in bids, e#ecute project projects abroad etc hich hile prior

permission from re&erse bank of %ndia is not necessary for issue of foreign guarantees in case of genuine e#ports. 'are should be taken hile e#tending this facility since any claim ill result in outflo of foreign currency. 5ank guarantee could be issued in foreign of o&erseas beneficiary either directly or through any bank o&erseas by issuing counter guarantee in fa&our of foreign bank.

B' $OR=ARD 5ONTRA5TE %nternational trade transactions in&ol&e con&ersion of one currency to another. There are basically t o types of transactions in the foreign e#change markets. Purchase transactionE for e#porters ho e#pect inflo of money against sales abroad, hen the bank con&erts such foreign currency receipts into %ndian rupees, it purchases the foreign currency. These are kno n as purchase transactions. Such transactions are generally entered into for reali!ation of e#port bills for collection, in ard remittances, purchaseJ negotiation of e#port bills etc. Sales transactionE for importers ho ha&e to make payments abroad for their purchases, the bank in such a case recourse the rupee e(ui&alent of the bill amount at current e#change rate. These are kno n as sale transactions. Such transactions are entered into for payment of import bills, remittance of agency commission etc. 2or ard contract is a contract entered into for any transaction of a future date herein the rate is fi#ed today. %n such a case the loss arising by the fluctuation in hat is the amount he is the market is nullified and e#porter can determine in ad&ance be paid by him after a particular period of time.

going to recei&e on a future date and an importer can be confirmed about the amount to

The common steps in&ol&ed in for ard contracts areL 98 booking F8 early deli&ery M8 e#tension

50

;8 cancellation

1. Booking of for!ard %ontra%tE 2or ard contract can be booked both by e#porters and importers keeping in &ie the follo ingL

"2or ard co&er should be for genuine transactions. "the contract can be entered for only permitted currencies. "authori!ed dealer should be satisfied e#posure on the client. 2. 1arl& deli9er& of foreign eH% ange %ontra%t"L The authori!ed dealer at the specific re(uest of the customer may gi&e an early deli&ery of the contract. The bank generally charges from the customer for the facility. 3. 1Hten"ion of a for!ard %onta%t E The customer may sometimes re(uest for an early e#tension of a contact, in such cases the bank has to cancel the old contract and Reebok the same for the e#tended period. The difference in rates shall be reco&ered fromJpaid to the customer at the time of e#tension. ith the standing of the customer as there is an

4. 5an%ellationE %f there is a re(uest to cancel the contract the authori!ed dealer may reco&erJpay the difference as the case may be. The s ap cost is reco&ered from the customer.

N. RH**%TAD'HSL %n ard remittances Out ard remittance

51

In!ard remittan%e" ot er t an eHport"E %n any foreign trade, there is an e#change of foreign currency for &arious reasons other than imports and e#ports. There may be money recei&ed for reasons like family maintenance, scholarship, and credit to DRH aJc, for opening 2'DR deposits, daily e#penses of members in %ndia etc. These remittances are included under in ard remittances other than e#ports. Out!ard remittan%e" Jot er t an import"E %n foreign trade, sometime there is a need for e#change of foreign currency for reasons other than e#ports or imports. This remittance of money by any person to ards e#penses like di&idend paid, student feesJother education e#penses, agency commission etc. in the re(uired foreign currency is kno n as out ard remittances other than import.

T1RM D10OSIT
TenureL 1ide range of T+ tenures from E days to 9? years. 52

 AmountL *inimum T+ amount Rs F6??? 7Rs. 9???? for e#iting customer8 Hase and con&ince of operationL An e#isting customer can replace a term deposit through phone banking or net banking. 1hat more our brands. Intere"t pa&out optionE'hoose the rein&estment option to get interest on interest or a&ail interest payout option monthly or (uarterly inter&als. No penalt& on pre- mature en%a" ment EThere is no penalty on pre" mature encashment of deposit interest ill be paid a the rate pre&ailing for the tenure the deposit stayed ith the bank on the date of deposit of the ill attract the rate of ithdra n amount or the contracted rate hich e&er is lo er. %n case of partial premature encashment, the residual amount interest pre&ailing for that amount and tenure as on the original date of deposit. %n such cases, the interest rate for residual amount ill get accordingly aligned. <iLuidit& t oug o9erdraft or "!eep in fa%ilit&EThe term deposit ill be a&ailable to the customer a&ail o&erdraft facility against it in case of an emergency. $e can a&ail up to G6B o&erdraft against the T+ by paying FB abo&e deposit rate. This facility is a&ailable for deposits abo&e Rs.6?, ??? for tenure of 9G9 days of more. 'ustomer can also choose to link the term deposit to his sa&ingsJ current account hereby if need be, the term deposit automatically be enchased to meet any facility a&ailable L" ill i.e. nominal different persons hile booking a term deposit, ithdra al re(uirement. Domination e can e&en re&ie his deposit by placing an instruction o&er alking across into any of phone needless to mention, be can do all this and more by

'ustomer can choose to a&ail nomination at account for different term deposit accounts if nothing specify, nomination at the customer T+ le&el ill be applied .

53

D1MAT
1hat is a demat account< +emat refers to a demateriali!ed account. Rust as e ha&e to open an account ith a bank if e ant to sa&e our money, make che(ue payments etc, e need to open a 54

demat account if e ant to buy or sell stocks. So it is just like a bank account here actual money is replaced by shares. 1e ha&e to approach the +Ps 7they are like bank branches8, to open our demat account. 0et=s say our portfolio of shares looks like thisL ;? of %nfosys, F6 of 1ipro, ;6 of $00 and 9?? of A''. All these ill sho in our demat account. So e don=t ha&e to possess any physical certificates sho ing that e o n these shares. They are all held electronically in our account. As e buy and sell the shares, they are adjusted in our account. Rust like a bank passbook or statement, the +P ill pro&ide us ith periodic statements of holdings and transactions. Do adays, practically all trades ha&e to be settled in +emateriali!ed form. Although the market regulator, the Securities and H#change 5oard of %ndia 7SH5%8, has allo ed trades of up to 6?? shares to be settled in physical form, nobody ants physical shares any more. So a +emat account is a must for trading and in&esting. 1e ha&e to look for a +P to ha&e an account ith *ost banks are also +P participants, as are many brokers. A broker is separate from a +P. A broker is a member of the stock e#change, ho buys and sells shares on his behalf and on behalf of his clients. A +P ill just gi&e us an account to hold those shares. 1e do not ha&e to take the same +P that your broker takes. 1e can choose our o n. 5ut many brokers offer special incenti&es in the form of lo er charges for opening demat accounts ith their +Ps.Once e approach our +P, e ill be guided through the formalities of opening an account. 1e must fill up an account opening form and sign an agreement ith our +P. The +P ill ask for some documents as proof of our identity and address. , 7some may accept a dri&er=s license, others may not.8$ere is a broad list 7 e on=t need all of them though8L SPAD card SOoter-s %+ S Passport S Ration card S +ri&er=s license S Photo credit card S Hmployee %+ card S 5ank attestation S %T returns S HlectricityJ 0andline phone bill

55

1hile they only ask for photocopies of the documentsC they ill need the originals for &erification. 1e ill ha&e to submit a passport si!e photograph on hich e sign across. 1hen opening an account ith a bank, e need a minimum balance. Dot so ith a demat account. A demat account can be opened ith no balance of shares. And there is no minimum balance to be maintained either. Qou can ha&e a !ero balance in your account. The charges for account opening, annual account maintenance fees and transaction charges &ary bet een +Ps. 1hen e open an account, the +P ill allot a uni(ue 5O %+ 75eneficial O ner %dentification8 Dumber, hich e need to (uote for all future transactions. %f e ant to sell our shares, e need to place an order ith our broker and gi&e a =+eli&ery %nstruction= to our +P. The +P ill debit our account ith the number of shares sold. 1e ill recei&e the payment from our broker. %f e account. ant to buy shares, inform broker about our +epository Account Dumber, so that the shares bought are credited into our

= atM" t e differen%e bet!een a depo"itor& and a depo"itor& parti%ipantN

A depository is a place The depository has here the stocks of in&estors are held in electronic form. ho are called depository participants 7+Ps8. here all the technology rests and details of all

agents

Think of it like a bank. The head office

accounts held is like the depository. And the +Ps are the branches that cater to indi&iduals. There are only t o depositories in %ndia "" the Dational Securities +epository 0td 7DS+08 and the 'entral +epository Ser&ices 0td 7'+S08. There are o&er a 9?? +Ps.

M3T3A< $3ND

56

$iHed Maturit& plan"E

5eat the R5% Relief 5ond and get returns uncertain times, 2i#ed *aturity plans in&est in instruments fund ould in&est in those dept instruments hich ith certainty in ith maturity matching the

terms of the scheme. 2or e#ample, if the one year 2*P is offered to in&estors, than the ould mature in around one year. The hich 2*Ps are close ended in terms of structure and passi&ely managed portfolio, the redemption of scheme. The basic ad&antages of 2*Ps are" 5apital prote%tionL %f the in&estor holds the units till maturity, then he runs near instruments they are in&esting Indi%ati9e &ieldE %n&estors may get an indication 7not assured8 of the returns in&esting, as the income in the hands of in&estors less e#penses. <o!er eHpen"e"O The scheme is passi&ely managed so the e#penses charged by the A*' are much lo er compared to direct in&estment in dept instruments. %nitially hen 2*Ps as introduced it as mainly a &ehicle for institutional J corporate in&estors to recei&e ta# efficient returns. The corporate ta# rate on short terms income as significantly higher compared to distribution ta# paid by the mutual funds, this resulted in 2*Ps transforming into structured products for select in&estors. That-s hen SH5% inter&ened and put restriction in terms of numbers of in&estors 7at least F? in&estors8 and share of in&estor-s assets 7should not be holding more than F6B8 in total assets managed under scheme. hile

means the portfolio is created the time of the recei&ing subscription and remains static till

ould be gross yield on in&estments

(alue in9e"ting "t&le fund"E

57

Rust like there are different ays to reach a destination, similarly there are different approaches to in&est in markets. The t o common hereas, the approaches to in&esting in market are &alue in&esting and gro th in&esting. The &alue in&esting approach is all about buying Pgood companies at great pricesX philosophy of gro th in&esting may be described as Pgreat company at good priceX. The objecti&e of both the approaches the same to get superior returns from the market. And disciplined approaches follo ing any in&estments strategies shale gi&e good returns to the in&estors. Oalue in&esting is about buying (uality stocks" stocks ith good management, earning po er, sustainable business model and that are (uoting cheap. %t-s akin to buying an arro from a lo "end manufacturer. a&ailable shirt in the sale and is not at all about buying a shirt shirt, such (uality stocks may be Rust like an arro

cheap for a number of reasons. 2or instance, o&er" reaction by in&estors to style, poor economic condition all present such

unfa&orable ne s about a company, an industry or the stock market in general, market decline unfa&orable commodity opportunity limited interest of market players in a company may also present a bargin opportunity. This is fre(uently true of small companies. The lack of accessible information on the company may thus create a bargin for the diligent in&estors, &aluation and patiently ho then buy at a lo aits for other in&estors to disco&er the company-s merits. Turn

around cases, i.e., the companies that are emerging from losses, poor earnings also present such an opportunity. %t is important to remember that &alue in&esting is not about buying a stock that is cheap. 0o stock prices do not necessarily signal P&alueX in the stock market any more than do cheap consumer goods flooding the market place.

= at i" a mutual fundN

*utual fund is a mechanism for pooling the resources by issuing units to the in&estors and in&esting funds in securities in accordance document. %n&estments in securities are spread across a ide cross"section of industries and sectors ith objecti&es as disclosed in offer

and thus the risk is reduced. +i&ersification reduces the risk because all stocks may not mo&e in the same direction in the same proportion at the same time. *utual fund issues

58

units to the in&estors in accordance ith (uantum of money in&ested by them. %n&estors of mutual funds are kno n as unit holders. The profits or losses are shared by the in&estors in proportion to their in&estments. The mutual funds normally come out objecti&es registered ith a number of schemes ith different in&estment hich regulates securities hich are launched from time to time. A mutual fund is re(uired to be ith Securities and H#change 5oard of %ndia 7SH5%8

markets before it can collect funds from the public. A mutual fund is set up in the form of a trust, more than one sponsor hich has sponsor, trustees, asset *anagement 'ompany 7A*'8 and custodian. The trust is established by a sponsor or ho is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unit holders. Asset *anagement 'ompany 7A*'8 appro&ed by SH5% manages the funds by making in&estments in &arious types of securities. 'ustodian, ho is registered ith SH5%, holds the securities of &arious ith the general po er of schemes of the fund in its custody. The trustees are &ested of SH5% Regulations by the mutual fund. SH5% Regulations re(uire that at least t o thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated re(uired to be registered ith the sponsors. Also, 6?B of the directors of A*' must be independent. All mutual funds are ith SH5% before they launch any scheme. $o e&er, Unit Trust of %ndia 7UT%8 is not registered ith SH5% 7as on Ranuary 96, F??F8. = at i" Net A""et (alue 8NA(; of a "% emeN The performance of a particular scheme of a mutual fund is denoted by Det Asset Oalue 7DAO8. *utual funds in&est the money collected from the in&estors in securities markets. %n simple ords, Det Asset Oalue is the market &alue of the securities held by the scheme. Since market &alue of securities changes e&ery day, DAO of a scheme also &aries on day to day basis. The DAO per unit is the market &alue of securities of a scheme di&ided by the total number of units of the scheme on any particular date. 2or e#ample, if the market &alue of securities of a mutual fund scheme is Rs F?? lakhs and the mutual fund has issued 9? lakhs units of Rs. 9? each to the in&estors, then the DAO per unit of the fund is Rs.F?. DAO is re(uired to be disclosed by the mutual funds on a regular basis " daily or eekly " depending on the type of scheme. 59

superintendence and direction o&er A*'. They monitor the performance and compliance

Different t&pe" of mutual fund "% eme"E a; S% eme" a%%ording to Maturit& 0eriodE
A mutual fund scheme can be classified into open"ended scheme or close"ended scheme depending on its maturity period. Open-ended $undF S% eme E An open"ended fund or scheme is one that is a&ailable for subscription and repurchase on a continuous basis. These schemes do not ha&e a fi#ed maturity period. %n&estors can con&eniently buy and sell units at Det Asset Oalue 7DAO8 related prices declared on a daily basis. The key feature of open"end schemes is li(uidity. 5lo"e-ended $undF S% eme A close"ended fund or scheme has a stipulated maturity period e.g. 6"E years. The fund is open for subscription only during a specified period at the time of launch of the scheme. %n&estors can in&est in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock e#changes here the units are listed. %n order to pro&ide an e#it route to the in&estors, some close"ended funds gi&e an option of selling back the units to the mutual fund through periodic repurchase at DAO related prices. SH5% Regulations stipulate that at least one of the t o e#it routes is pro&ided to the in&estor i.e. either repurchase facility or through listing on stock e#changes. These mutual funds schemes disclose DAO generally on eekly basis. hich are

b; S% eme" a%%ording to In9e"tment Ob:e%ti9eE

A scheme can also be classified as gro th scheme, income scheme, or balanced scheme considering its in&estment objecti&e. Such schemes may be open"ended or close"ended schemes as described earlier. Such schemes may be classified mainly as follo sL #ro!t F 1Luit& Oriented S% emeE The aim of gro th funds is to pro&ide capital appreciation o&er the medium to long" term. Such schemes normally in&est a major part of their corpus in e(uities. Such funds ha&e comparati&ely high risks. These schemes pro&ide different options to the in&estors like 60

di&idend option, capital appreciation, etc. and the in&estors may choose an option depending on their preferences. The in&estors must indicate the option in the application form. The mutual funds also allo o&er a period of time. In%ome F Debt Oriented S% emeE The aim of income funds is to pro&ide regular and steady income to in&estors. Such schemes generally in&est in fi#ed income securities such as bonds, corporate debentures, ,o&ernment securities and money market instruments. Such funds are less risky compared to e(uity schemes. These funds are not affected because of fluctuations in e(uity markets. $o e&er, opportunities of capital appreciation are also limited in such funds. The DAOs of such funds are affected because of change in interest rates in the country. %f the interest rates fall, DAOs of such funds are likely to increase in the short run and &ice &ersa. $o e&er, long term in&estors may not bother about these fluctuations. Balan%ed $undE The aim of balanced funds is to pro&ide both gro th and regular income as such schemes in&est both in e(uities and fi#ed income securities in the proportion indicated in their offer documents. These are appropriate for in&estors looking for moderate gro th. They generally in&est ;?"N?B in e(uity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. $o e&er, DAOs of such funds are likely to be less &olatile compared to pure e(uity funds. Mone& Market or <iLuid $undE These funds are also income funds and their aim is to pro&ide easy li(uidity, preser&ation of capital and moderate income. These schemes in&est e#clusi&ely in safer short"term instruments such as treasury bills, certificates of deposit, commercial paper and inter" bank call money, go&ernment securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and indi&idual in&estors as a means to park their surplus funds for short period. #ilt $undE These funds in&est e#clusi&ely in go&ernment securities. ,o&ernment securities ha&e no default risk. DAOs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case ith income or debt oriented schemes. 61 the in&estors to change the options at a later date. ,ro th schemes are good for in&estors ha&ing a long"term outlook seeking appreciation

 IndeH $und"E %nde# 2unds replicate the portfolio of a particular inde# such as the 5SH Sensiti&e inde#, S/P DSH 6? inde# 7Difty8, etc these schemes in&est in the securities in the same eightage comprising of an inde#. DAOs of such schemes ould rise or fall in accordance ith the rise or fall in the inde#, though not e#actly by the same percentage due to some factors kno n as @tracking error@ in technical terms. Decessary disclosures in this regard are made in the offer document of the mutual fund scheme. 8. Pension schemes launched by the mutual funds also offer ta# benefits. These schemes there are also e#change traded inde# funds launched by the mutual funds traded on the stock e#changes. hich are

c8 Se%tor "pe%ifi% fund"F"% eme"E

These are the fundsJschemes hich in&est in the securities of only those sectors or

industries as specified in the offer documents. H.g. Pharmaceuticals, Soft are, 2ast *o&ing 'onsumer ,oods 72*',8 / Petroleum stocks etc. The returns in these funds are dependent on the performance of the respecti&e sectorsJindustries. 1hile these funds may gi&e higher returns, they are more risky compared to di&ersified funds. %n&estors need to keep a atch on the performance of those sectorsJindustries and must e#it at an appropriate time. They may also seek ad&ice of an e#pert.

d; TaH Sa9ing S% eme"E

These schemes offer ta# rebates to the in&estors under specific pro&isions of the %ncome Ta# Act, 9:N9 as the ,o&ernment offers ta# incenti&es for in&estment in specified a&enues. H.g. H(uity 0inked Sa&ings Schemes 7H0SSare gro ths oriented and in&est pre" dominantly in e(uities. Their gro th opportunities and risks associated are like any e(uity" oriented scheme.

e; <oad or no-load $undL

A 0oad 2und is one that charges a percentage of DAO for entry or e#it. That is, each time one buys or sells units in the fund, a charge 62 ill be payable. This charge is used by the

mutual fund for marketing and distribution e#penses. Suppose the DAO per unit is Rs.9?. %f the entry as ell as e#it load charged is 9B, then the in&estors ho buy ould be hile re(uired to pay Rs.9?.9? and those ho offer their units for repurchase to the mutual fund

ill get only Rs.:.:? per unit. The in&estors should take the loads into consideration

making in&estment as these affect their yieldsJreturns. $o e&er, the in&estors should also consider the performance track record and ser&ice standards of the mutual fund hich are more important. Hfficient funds may gi&e higher returns in spite of loads. A no"load fund is one that does not charge for entry or e#it. %t means the in&estors can enter the fundJscheme at DAO and no additional charges are payable on purchase or sale of units.

Sale" or repur% a"eFredemption pri%e

The price or DAO a unit holder is charged hile in&esting in an open"ended scheme is hich an open"ended scheme

called sales price. %t may include sales load, if applicable. Repurchase or redemption price is the price or DAO at purchases or redeems its units from the unit holders. %t may include e#it load, if applicable.

Benefit"E
As apposed to in&esting directly in different asset"classes, accusing them through a mutual fund has se&eral ad&antagesC a; 0rofe""ion managementE Our money is managed by professionals and spot good opportunities. b; Di9er"ifi%ationE 1ith similar amounts, di&ersification and reduce our risk. %; <iLuidation and %on9enien%e ea"eE %n&esting and getting back our money is easy. Also there is &ery little paper ork, and it is &ery easy to track and monitor our in&estments. And other con&enienceL o 2le#ibility in the amount of in&estment o 2le#ibility in the fre(uency of in&estment o 'hoice of time hori!on of in&estment 7short term Jmedium term Jlong 63 e can achie&e a higher degree of ho ha&e the e#perience and resources to thoroughly analy!e the economy and financial markets,

term8 o 'hoice of type of in&estment7debt Je(uity Jbalanced8 o Hasy to s itch bet een different schemesJplans 7in&estor can shift from dept to e(uity markets and from e(uity to dept8 o +ifferent option a&ailable for in&estments 7di&idendsJgro th8 o Option to in&est and ithdra systematically o&er a period of

time7systematic in&estment plans and systematic ithdra al plans8 o Hasy to buy and sell d; TaH benefitE some mutual fund schemes offer our ta# rebates under section GG. %n addition, our returns from mutual fund 7di&idends and capital appreciation8 are also eligible for fa&orable ta# treatment. e; Tran"paren%& E mutual fund in&esting is really simple and transparent regular updates from fund houses Portfolio disclosures necessary as per SH5% regulation.

64

INS3RAN51
<ife in"uran%e or life a""uran%e is a contract bet een the policy o ner and the insurer, here the insurer agrees to pay a sum of money upon the occurrence of the insured indi&idual=s or indi&iduals= death or other e&ent, such as terminal illness or critical illness. %n return, the policy o ner 7or policy payer8 agrees to pay a stipulated amount called a premium at regular inter&als or in lump sums. There may be designs in some countries here bills and death e#penses plus catering for after funeral e#penses should be included in Policy Premium. %n the United States, the predominant form simply specifies a lump sum to be paid on the insured=s demise. As ith most insurance policies, life insurance is a contract bet een the insurer and the hereby a benefit is paid to the designated 5eneficiary 7or policy o ner 7policyholder8

5eneficiaries8 if an insured e&ent occurs hich is co&ered by the policy. To be a life policy the insured e&ent must be based upon life 7or li&es8 of the people named in the policy. %nsured e&ents that may be co&ered includeL Serious illness 0ife policies are legal contracts and the terms of the contract describe the limitations of the insured e&ents. Specific e#clusions are often commotion. 0ife"based contracts tend to fall into t o major categoriesL Protection policies " designed to pro&ide a benefit in the e&ent of specified e&ent, typically a lump sum payment. A common form of this design is term insurance. %n&estment policies " here the main objecti&e is to facilitate the gro th of capital by hole life, uni&ersal regular or single premiums. 'ommon forms 7in the US any ay8 are life and &ariable life policies. ritten into the contract to limit the ar, riot and ci&il liability of the insurerC for e#ample claims relating to suicide, fraud,

65

In"uran%e Regulator& 4 De9elopment Aut orit& 8IRDA;

%nsurance Regulatory and +e&elopment Authority 7%R+A8 as constituted in 9::: by an Act of Parliament to protect the interests of the policyholders and to regulate, promote and ensure orderly gro th of the insurance industry. %R+A consists of a ten member team that comprises a 'hairman, fi&e hole"time members and four part"time members. %R+A allo s registration of ne rene , modify, players in the insurance field. %t also has the authority to ithdra , suspend or cancel such registration. %R+A ensures protection of

the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender &alue of policy and other terms and conditions of contracts of insurance. %t specifies re(uisite (ualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents.

After creation of %R+A, insurance sector has seen tremendous gro th. 5efore %R+A came into force there FM ne ere only players in the insurance field, namely, 0ife %nsurance 'orporation of %ndia 70%'8 and ,eneral %nsurance 'orporation of %ndia 7,%'8. Since then players ha&e entered in the insurance sector.

About kotak 8in"uran%e;

Ke& $eature" 'arefully selected insurance policies to suit our needs H#perts to help us analy!e our insurance needs and de&elop Ythe solution that orks best for us.

)otak offers a range of carefully selected insurance policies across the entire spectrum of life insurance products. There relationship managers and de&elop the solution that orks best for us. 0lan" pro9ided b& KotakE

ill analy!e our insurance needs

)otak Smart Ad&antage Plan )otak Hternal 0ife Plans )otak $ead start 'hild Plans 66

)otak Safe %n&estment Plan %% )otak 2le#i Plan )otak Hasy ,ro th Plan )otak 'apital *ultiplier Plan )otak Term Plan )otak Preferred Term Plan )otak 'hild Ad&antage Plan )otak Retirement %ncome Plan )otak Retirement %ncome Plan 7Unit 0inked8 )otak Hndo ment Plan )otak *oney 5ack Plan )otak Premium Return Plan Riders

Kotak Smart Ad9antage 0lanE H&ery step in our life brings ith it ne so that greatly on ho e build on our today. learning. 1e are determined to make the best of it, e shape our tomorro depends

e can look for ard to a great future. $o

)otak 0ife %nsurance introduces )otak Smart Ad&antage, a great combination of in&estment ith insurance, to put our sa&ings to ork today. %t is a market linked plan ith 9??B premium allocations helping us accumulate term. This plan offers the follo ing key benefitsL

ealth systematically, o&er the long"

,uaranteed returns of up to FE6B of your first year premium at maturity Assured bonus additions at regular inter&als during the policy term to enhance our fund &alue 9??B9 allocation of our premiums from second year on ards to ma#imi!e our earnings potential A uni(ue fund offering us the ma#imum opportunity for gro th Option to ma#imi!e protection for our lo&ed ones

Applicable for premium si!es of Rs.MN, ??? and abo&e annually from second year on ards. 67

Kotak 1ternal <ife 0lan"E )otak Hternal 0ife Plans are participating cash lump sum benefits at desired stage and a innings of life. 1ith guaranteed protection for life, opportunity to create ealth, and comprehensi&e co&er options, these plans pro&ide us ith a perfect financial solution to suit our needs. = at %an 1ternal <ife do for u"N i. ii. iii. Pro&ides us ith lifelong protection hich continues ell beyond retirement to hich takes into ensure that our lo&ed ones remain secure, irrespecti&e of the uncertainties in life. Hnables a high amount of insurance co&er at affordable premiums Offers li(uidity for planned and unplanned needs so that money i&. hen stages in life. Presents options and solutions that suit our personal preference to make a decision that is more suitable and beneficial for us. Kotak Head "tart 5 ild 0lan"E H&ery child is different. Hach has their o n set of dreams and aspirations. As a parent people ould like to pro&ide there child ith all the building blocks that could de&elop his or her potential to the fullest. This could mean e#tra coaching or tuition for talented children, special training or e(uipment for natural athletes or professional training for born singers. Head "tart 5 ild 0lan" 3 A specially tailored, cost"effecti&e plan, aims to gi&e children the financial means to pursue his or her dreams and li&e them. The plan offers the follo ing ad&antages.

hole life plans that pro&ide enhanced ay to care for our spouse in the second

protection till the golden age of ::. The plans pro&ide for a high co&er at lo er premiums,

account our gro ing responsibilities and keeps pace ith our increasing needs. e ha&e access to our e need it the most, adding to our comfort and security at important hich enables us

'hoice of F plan &ariants

o o

2uture Protect Assure 1ealth

*a#imi!es ealth hile pro&iding protection Roint life option 68

Sa&e for F children ith one plan Additional bonus units 2le#ible 1ithdra al

Kotak Safe In9e"tment 0lan IIL )otak Safe %n&estment Plan %% is a unit linked plan that combines the benefits of insurance and capital market returns into one. This plan from the stable of )otak 0ife %nsurance is a true reflection of the company-s essenceL inno&ation that enjoy a ,uaranteed *aturity Oalue, ith the peace of mind that ill benefit the e in&estor. 1hat makes in&esting in )otak Safe %n&estment Plan %% truly uni(ue is that on our risk appetite. So, if the market &alue of our units is higher,

ith &arying degrees of e(uity e#posure depending e reap the benefits

hilst in a bear market our in&estment is under"pinned by the

,uaranteed *aturity Oalue. And there-s more, the returns are totally ta#"freeI. Kotak $leHi 0lanE There may be times hen e ish there as an ans er to our financial orries. A

solution that allo s us to take control of our in&estments. A ay to pro&ide for our family-s future goals and e#penses, and to protect our family from the harsh uncertainties of lifeC be it death, disability or illness. $ere is Z)otak 2le#i PlanZ hich is designed to do just this. %t comes to us ith the option of in&esting in si# professionally managed funds, allo ing us to allocate our in&estment in a combination of one or more funds, s itch bet een them and take charge of our in&estments. The plan aims to earn efficient returns o&er the long term and helps us plan for our financial goals, ith the comfort of a ,uaranteed *aturity Oalue. *ore importantly, it ensures that our lo&ed ones are protected, if any unfortunate e&ents ere to take place[a plan that gi&es us complete control. Kotak 1a"& #ro!t 0lanE )otak Hasy ,ro th Plans are single premiumC market linked insurance plans that keep pace ith your e&er gro ing success. %t not only helps us sa&e for the future but also lets us reap rich benefits from the in&estments of our choice. The undisputed ad&antage of 69

these plans is its simplicity. This simplicity stems from our clear understanding of ould appeal to a customer ho is looking for a hassle free in&estment option. Kotak 5apital Multiplier 0lanE The )otak 'apital *ultiplier Plan is a participating plan that is built in such a need it, in regular ithdra als. This is an endo ment plan,

hat

ay that it ay e

allo s our money to multiply, and gi&es u the fle#ibility of using this money the a lot of other in"built benefits. Kotak Term 0lanE

hich is &ery fle#ible, and has

)otak Term Plan is a pure risk product that aims to co&er our life at a nominal cost. 1e may ant to take this plan to co&er our outstanding debts like a mortgage, a home loan etc. Since this is a pure risk co&er product, there are no maturity benefits payables on sur&i&al. This is a non"participating plan. Kotak 0referred Term 0lanE The )otak Preferred Term Plan is designed to pro&ide us ith reduced premium rates for ho do not

a sum assured of Rs.9? lacs and abo&e. Only *ales o&er the age of 9G years,

use tobacco in any form. And females o&er the age of 9G years are eligible for this plan. Kotak 5 ild Ad9antage 0lanE The )otak 'hild Ad&antage Plan is an in&estment plan designed to meet your child-s future financial needs. %t-s a plan that gi&es your child the @a!aadi@ to reali!e his dreams. The plan is a participating plan ith a 96"day free look period. Kotak Retirement In%ome 0lanE The )otak Retirement %ncome Plan is a sa&ings plan designed to meet our post" retirement needs. %t is a plan that gi&es us @Reene ki a!aadi@. %t gi&es us the choice to remain independent e&en after retirement. The )otak Retirement %ncome Plan is a participating plan. The plan comes in t o formsL 7i8 1ith 'o&er 7ii8 1ithout 'o&er. Kotak Retirement In%ome 0lan 83nit <inked;E $o ell e sa&e and in&est today ill make all the difference tomorro 70 bet een ha&ing

to

ork and choosing to

ork. There is no better time than the present to plan for

hat

should be the best years of life " your retirement. 5y the time

e retire, costs of li&ing

ould ha&e increased substantially making e&en the most basic commodities like milk and &egetables costlier by probably fi&e times. *edical costs ould ha&e doubled or more. An ideal retirement solution is the one that gi&es you complete fle#ibility and peace of mind, not only 0inked8. An in&estment plan designed to secure our futureC it assures that e&en though stopped e ha&e hile e sa&e for our retirement but also after e retire. To help us plan to ards the golden years of our life, they present to us the )otak Retirement Plan 7Unit"

orking, our income does not. %t is offered to us in three &ersions " Regular ith the )otak @Seal of ,uarantee@\. These plans ha&e

Premium, 1ith 'o&er and 1ithout 'o&er, in addition to a Single Premium &ersion. The regular premium options come been designed to ensure that our money earns handsome returns, safe from the &agaries of the capital market, so that e can retire comfortably and securely. Please note that in these plans, the in&estment risk in the in&estment portfolio is to be borne by the policyholder. $o e&er, )otak 0ife %nsurance offers us a 5asic Sum AssuredJ ,uaranteed *aturity Oalue on the Regular Premium &ersions of this plan to safeguard against the do nside risk of falling markets. Kotak 1ndo!ment 0lanE )otak Hndo ment Plan is a protection plan that co&ers our life and at the same time ensures that our money does not lie idle. %t in&ests a portion of our premium in financial instruments and ensures a considerable gro th in sa&ings. This is a participating plan 7 ith profits8. Kotak Mone& Ba%k 0lanE The )otak *oney 5ack Plan not only co&ers your life, it also assures you a certain percent of the sum assured as cash payment at regular inter&als of e&ery 6 years. %t is a sa&ings plan ith the added ad&antage of life co&er and regular cash inflo . This plan is edding, your child-s education or purchase of ideal for planning special moments like a

an asset etc. This is a participating plan 7 ith profits8.

71

Kotak 0remium Return 0lanE This plan is a sure and secure insurance option ithout the hassles or orries of a

con&entional insurance plan. 1ith minimal paper ork and procedures, paid by us ill be returned depending on the option e choose. %n other

e get the dual ords, this is a

benefit of a risk co&er and sa&ings. At the end of the term, a minimum of the premiums term plan that makes financial sense by offering maturity benefits as ell.

Rider"E H&ery person has a different need and e at )otak 0ife %nsurance recogni!e this. To gi&e hich e

us the fle#ibility to customi!e and enhance our co&er, they offer a set of riders

may opt for along ith our basic policy and shape our policy to suit our indi&idual needs. The riders may be a&ailed of at the time of purchasing the plan, at a nominal cost. The ma#imum amount of benefit e can a&ail is e(ual to the basic sum assured. The aggregate premium on all &alue"ads should not, ho e&er, e#ceed M?B of the basic premium.

72

KOTAK #O<D 1T1RNIT>

K1> $1AT3R1 F; carat pure gold coins and bars carrying a ::.::B Assay 'ertification Uni(ue number on e&ery certicard, ith records maintained in S it!erland

)otak *ahindra 5ank brings you ,old Hternity, F; 'arat pure gold coins and bars, carrying a ::.::B Assay 'ertification, signifying the highest le&el of purity as per international standards.

*anufactured in S it!erland by PA*P, one of the orld-s premier gold refiners and a brand recogni!ed orld ide as a guarantee of e#cellence and (uality 'ertified by one of the top assayers in the orld Tamper proof packaging to ensure the purity of the gold bar Uni(ue number on e&ery certicard, ith records maintained in S it!erland 'ompetiti&e pricing based on daily pricing in the international bullion market )otak ,old Hternity comes to you in &aried denominations. Qou can choose from a range of coins and bars in 6gm, Ggm, F?gm, 6? gm and 9?? gm.

,old is the oldest currency in the a &ariety of reasons.

orld and is co&eted across continents and cultures for

Maintain" long term 9alue

73

*arket cycles ha&e their ups and do ns, but gold has maintained its long"term &alue. Paper currencies may rise and fall but gold al ays endures. ,old has demonstrated its capacity to store &alue for centuries

Safe refuge ar or economic crisis, there may be a negati&e effect

+uring times of calamities like

on in&estments like currencies, bonds and e(uities, but may ha&e an opposite effect on the &alue of gold. Also gold is not a liability of any go&ernment or corporation and hence it does not run a risk of becoming orthless due to une#pected e&ents.

Inflation Hedge

The &alue of gold, in terms of real goods and ser&ices that it can buy, has remained remarkably stable declined

hereas the purchasing po er of many currencies has generally

Help" build a robu"t portfolio

Adding gold to a portfolio introduces an entirely different asset class. Portfolios that contain gold are generally more robust and better able to cope uncertainties than those ith market hich don=t. Recent independent studies ha&e sho n that

traditional di&ersifiers 7such as bonds and alternati&e assets8 often fail during times of market stress or instability. H&en a small allocation of gold has been pro&en to significantly impro&e the consistency of portfolio performance during both stable and unstable financial periods.

1ffe%ti9e Di9er"ifier

+i&erse in&estments help protect the portfolio against fluctuations in the &alue of any single asset class. ,old is an e#cellent portfolio di&ersifier because its performance tends to mo&e independently of other in&estments and key economic factors.

Bot tangible and liLuid

,old is an asset that is both tangible and li(uid, unlike real estate hich is tangible but not li(uid, or company shares and bonds hich are li(uid but not tangible.

74

5AR $INAN51

)otak *ahindra Prime 0imited 7)*P08 is a subsidiary of )otak *ahindra 5ank 0imited formed to finance all passenger &ehicles. The company is dedicated to financing and supporting automoti&e and automoti&e related manufacturers, dealers and retail customers. The 'ompany offers car financing in the form of loans for the entire range of passenger cars and multi utility &ehicles. The 'ompany also offers %n&entory funding to car dealers and has entered into strategic arrangement manufacturers in %ndia for being their preferred financier. Kotak Ma indra 0rime <imited offers you fle#ible schemes to suit your needs, hassle" free documentation and (uick processing. To o n and dri&e your car in the (uickest possible time, just get in touch to gi&e you the benefit ith us. Our relations of the most ith car manufacturers are geared deals in the market. attracti&e ith &arious car

Our %ommitment i" to get &ou into t e dri9erI" "eat Lui%kl&6 ! ile gi9ing &ou "ome reall& "mart option" to % oo"e from' Kotak Ma indra 0rime <imited 8KM0<; offers you 3

The idest range of ne and pre"o ned cars Attracti&e interest rates 2le#ible schemes Speedy loan processing

Ne! 5ar $inan%e

75

Qour dreams can be reali!ed here. ,et that ne tenors as per your con&enience.

car you al ays

anted

ith our ne

car loans. 1e offer loans up to A+P of the e#"sho room price and fle#ible repayment

Margin Mone& S% eme

1e pro&ide finance for ac(uisition of ne certain models

car up to :?B of the in&oice &alue for

The customer should pay the margin money 7in&oice &alue minus the finance amount8 to the dealer directly. $e also has an option to pay the margin money to )*P0 upon hich e ould release the entire in&oice &alue to the +ealer

The financed amount can be repaid as per your con&enience 79F " N? months H*%s8

Step 3p S% eme

%ncrease in H*% after e&ery year, si# months or (uarter 7depending upon your needs8 5est suited for people ho ant the lu#ury car e#perience *ake payments in line early period of repayment8 ith your gro ing income 7starting ith lo H*%s in the

<o! 1MI6 Balloon S% eme

9?B"F6B of the cost of the car to be paid as last H*% Reduced H*% for the entire tenure ho ant to dispose off their &ehicle at the end of the tenure and

5est for customers

are looking at affordable H*%s during the tenure. Ad9an%e 1MI S% eme

*ake the payments of a fe

monthly installments upfront

5alance payable through H*%s Repay your loan much faster ith the ad&ance installments

Spe%ial S% eme" offered b& KM0< 2rom time to time e bring in special schemes under tie"ups ith &arious manufacturers 76

3"ed 5ar $inan%e

O ning a used car can be a "imple6 ea"& and reliable eHperien%e against your e#isting car. 0re-appro9ed loan 0o

ith )*P0 Used

'ar 2inance. 1e offer up to A+P funding of the car &alue. Qou may also a&ail finance

ticket si!e loans 0oan amount up to Rs. 9.6 0acs *inimum documentation

0referred "egment loan

0oan amount bet een Rs. 9.6 3 Rs. 96 0acs. $assle"free processing 2unding up to G6B ith ma#imum tenure of N? months

Appro9e &ou o!n loan for salaried employee

*onthly installment e(uals ;?B of net salary 0oan amount e(uals up to M times of your annual salary

5a" again"t &our %ar a&ail this loan by pledging your e#isting car hich is free from any loan J $ypothecation. Take o9er of &our eHi"ting %ar loan and generate %a" %t-s a loan take o&er from the bank here the foreclosure amount is lesser than hat 77

)*P0 actually funds on the asset. That-s ho than 9??B finance

you generate cash and you can get more

HOM1 <OANS
Ke& feature

1ide range of offerings Attracti&e interest rates Pre"appro&ed sanctions 2ree personal accident insurance 0ife insurance options on your $ome 0oans Do hidden charges

At )otak *ahindra bank, you can a&ail of home loans for the purpose of purchasing residential property " hether you are buying it fresh from the de&eloper or it is a resale purchase. Our $ome 0oan solutions are designed to suit your needs hether you areL *o&ing home 1hen you=re ready to mo&e to a ne home, e can help you make the right

choice. Our speed of financing ensures that you mo&e ithout a hitch. 5uying a home for the first time %f you=&e ne&er bought a home before, your apprehension is understandable. 1e &alue for you, both no 2eatures / 5enefits and in the future. ill

guide you through the home"buying process and ensure that you get finance that=s good

78

1ide range of offerings Apart from the plain &anilla $ome 0oan, you can also a&ail of the e#act scheme that suits your needs. Qou can chooseL

)otak 2le#i $ome 0oan 2i#ed +eposit linked $ome 0oans

Attracti&e interest rates Qour finance facility comes to you at &ery attracti&e interest rates. And are no hidden charges to it. 2ree personal accident insurance 1e offer a free personal accident insurance co&er 3 up to Rs. 9 crore along ith your loan that ensures that you are co&ered for any accidental mishaps and your family is protected. Pre"Appro&al facilityL Qou can get a sanction for your loan amount based on the income, assets and employment information you pro&ide during your consultation Qou may come across a property ith )otak *ahindra 5ank. hich you need to close at a short notice. %n such a ell hat=s more, there

situation, this sanction can help so that you don=t miss the opportunity. 2inding a good home is not easy, so the sanction is good for N months, gi&ing you time to shop for the home of your choice. %nsurance options on your $ome 0oansL Qou can also a&ail of a reducing insurance co&er at an e#clusi&e premium, so that you are rest assured that should any unfortunate mishap occur to you, your family is safeguarded from any repayment burdens o&er the tenure of the loan. 1ligibilit& 0oans can be applied by indi&iduals, either solely or jointly. O ners of the current property, in respect of hich the loan is being sought, ill ha&e to be co"applicants. $o e&er, the co"applicants need not be co"o ners. Specific eligibility criteria are as follo sL 79

2or salaried indi&idualsL

*inimum gross annual income should be Rs.9.;; lakh. *inimum F9 years of age. *a#imum N? years of age or your retirement age, hiche&er is earlier at the time of loan maturity<

2or self"employed professionalsL

*inimum annual income should be Rs.9.;; lakh as per the P/0. *inimum gross annual income should be Rs.9.;; lakh. *inimum F9 years of age. *a#imum N6 years of age at the time of loan maturity. 2irmJcompany should ha&e been in operation for the last M years. 2irmJcompany should be making cash profits for the last t o years.

2or self"employed non"professionalsL

*inimum annual income should be Rs.9.;; lakh as per the P/0. *inimum F9 years of age. *a#imum N6 years of age at the time of loan maturity. 2irmJcompany should ha&e been in operation for the last M years. 2irmJcompany should be making cash profits for the last t o years.

80

<OAN A#AINST 0RO01RT>

Ke& $eature"

$igh loan eligibility for businessmen 2ree personal accident insurance 0oans amounts ranging from Rs.9? lakh " Rs.M croreV 0oans against residential as ell as commercial properties

Unlock the potential in your property by a&ailing a 0oan against Property 70AP8. A 0AP is a loan gi&en against the security of your e#isting property. The benefit is that interest rates on 0AP are generally lo er than rates on other consumer loans $eature" 4 Benefit" 2unds for your entire needs one can use this loan for a &ariety of purposes, like funding e#isting business, debt consolidation, emergencies, education etc. $igh loan eligibility for businessmen if you are a businessman, at )otak trust in you and your entrepreneurial judgement, solution that e do not

e&aluate your loan eligibility on the basis of your financial statements alone. 1e put our hile understanding the nature of your ork out a financial business and related aspects. This o&erall understanding helps us

ill match your needs. And not just that, you can also a&ail of )otak

'ommercial Property 0oans that help your business gro 3 literallyV Our loans help you get that opportunity to e#pand your business and de&elop it to its full potential. And not just that, you can also a&ail of Kotak 5ommer%ial 0ropert& loan" " that help your business gro 3 in the literal senseV Our loans help you get that 'ommercial space 81

that

ith pro&ide you the opportunity to e#pand your 5usiness and de&elop it to its full

potential 0oans against residential as ell as commercial properties 0oan against property facility is a&ailable against your residential as ranging from Rs.9? lakh to Rs.M crores. ell as commercial properties, for loan amounts

1ligibilit& 0oans can be applied by indi&iduals, either solely or jointly. O ners of the current property, in respect of hich the loan is being sought, ill ha&e to be co"applicants. $o e&er, the co"applicants need not be co"o ners. Specific eligibility criteria are as follo sL 2or salaried indi&idualsL

*inimum gross annual income should be Rs.9.;; lakh. *inimum F9 years of age. *a#imum N? years of age or your retirement age, hiche&er is earlier at the time of loan maturity<

2or self"employed professionalsL

*inimum annual income should be Rs.9.;; lakh as per the P/0. *inimum gross annual income should be Rs.9.;; lakh. *inimum F9 years of age. *a#imum N6 years of age at the time of loan maturity. 2irmJcompany should ha&e been in operation for the last M years. 2irmJcompany should be making cash profits for the last t o years.

2or self"employed non"professionalsL

*inimum annual income should be Rs.9.;; lakh as per the P/0. *inimum F9 years of age. *a#imum N6 years of age at the time of loan maturity. 82

2irmJcompany should ha&e been in operation for the last M years. 2irmJcompany should be making cash profits for the last t o years.

01RSONA< <OAN
Ke& $eature"

A&ail loans from Rs.6?,???"6? lakh 4uick Appro&al / hassle"free processing *inimal paper ork 2le#ible repayment options Repay ith easy H*%s 'on&enience of ser&ice at your doorstep

Our (uick and easy Personal 0oans are called Raldi 0oans. Our Personal 0oans help to make a difference in your life. Do matter e#penses, school fees, hat your financial needs are " une#pected edding in the family, home impro&ement or that long a aited

&acation< 1hate&er the occasion, our range of Personal 0oans can help. The procedure is simple, documentation is minimal and appro&al is (uick $eature" and Benefit" A&ail loans from Rs.6?,??? " 6? lakhIL Qou can a&ail of a loan from Rs.6?,??? " 6? lakhI for any purpose based on your income and repayment capacity and fulfil all your financial needs. 4uick appro&alL 1ith a Raldi 0oan, you are not far a ay from making your dreams come true. %n as less as EF hours you can turn your dreams into reality. *inimal paper ork / hassle free processingL Our minimal document re(uirements lea&e you tension and hassle free. Additionally, collateral is re(uired. orries are kept at bay, as no security or

83

2le#ible repayment optionsL Our fle#ible loan tenors range from 9F " N? months for salaried customers and 9F" MN months from businessmen J professionals, o&erburden you ith a orry to pay hea&y H*%s. hich don=t

'on&enience of ser&ice at your doorstepL Our Raldi 0oans are just a phone call a ayC you can fi# an appointment loan formalities. 5u"tomer pri9ilege"E

ith any of representati&es and they could assist you in all your

%f you are a )otak *ahindra 5ank account holder, e ha&e special rates for you. %f you are an auto J personal J home loan customer or are a credit card holder or paying an insurance premium or enjoying an O+J'' facility a&ail of instant loans ithout income documents. %f you are an e#isting )otak *ahindra 5ank Personal 0oan customer ith a clear repayment of 9F months or more, e can Top"Up your personal loan.

1ligibilit& %riteria for a 0er"onal <oan areL Salaried indi9idual" 0rofe""ional" Bu"ine""men

*ust be orking 0rofile for a Public 0td co.J *D'J large P&t 0td co.

*ust be a +octor 7*S, *+, *55S, 5+S8 , '.A., Architect, 'onsultant, %nterior +esigner

*ust ha&e clean payment track record of more than 9 year of a pre&ious loan.

Age

FM " 6G years resident %ndian

FM " 6G years resident %ndian

FM " 6G years resident %ndian

In%ome

Det monthly salary of Rs. 9?,???J" ith no loans

2iled %T returns of the last F years.

2iled %T returns of for the last F years

Rs.E6,???J" or more for Rs.E6,???J" or more

84

outstanding.

Minimum edu%ation Re"iden%e telep one

,raduate

Professional degree

,raduate

Re(uired

Re(uired

Re(uired

>ear" in %it&

*in 9 year

*in 9 year

*in 9 year

Total !ork eHperien%e

*in 9 year

*in 6 years

*in 6 years

85

5OMM1R5IA< (1HI5<1 $INAN5IN#

Ke& $eature"

'ommercial Oehicle 2inancing %nfrastructure 2inancing Tractor and 2arm H(uipment 2inancing SARA0 0oans 1orking 'apital 2inancing Team Structure 'ommercial Oehicle 2inancing caters to indi&idual and corporate

customers for their financing needs for o ning and running commercial &ehicles. 1e ha&e been in the 'ommercial Oehicle 2inancing 7'O 2inancing8 business for o&er a decade no / are a respected name in the transport"fraternity. 1e ha&e a customer base in e#cess of 9??,??? transporters. 1e ha&e a market share of o&er 6 B in the industry that is rapidly gro ing. There is a thorough processing flo in place to ensure appropriate assessment of

customer needs to pro&ide tailor made solutions to their needs.

86

IN$RAST35T3R1 $INAN5IN#
Ke& $eature"

'ommercial Oehicle 2inancing %nfrastructure 2inancing Tractor and 2arm H(uipment 2inancing SARA0 0oans 1orking 'apital 2inancing Team Structure 1ith increasing thrust on %nfrastructure de&elopment, e entered asset

backed funding for purchase of construction e(uipments and material handling e(uipments. $ere again e ere the fore"runner in entering this retail assets business and command a respectable position in the finance fraternity. 1e ha&e a market share of o&er 9F B in this asset space. 1ith the boom in infrastructure industry, this segment is a crucial component of our business. 2%RST ,roup caters to all types of %nfrastructure 2inancing " 2und based products and Don fund based products. 2und based products to purchase e(uipment or fulfil re(uirement of orking capital. Don fund based products include bank guarantees, import 0', buyers credit, fore# deri&ati&es and corporate ad&isory ser&ices. Hach customer also has the ad&antage of our banking and in&estment products ensuring all his financial needs are catered to through us.

87

TRA5TOR AND $ARM 1Q3I0M1NT $INAN5IN#

Ke& $eature"

'ommercial Oehicle 2inancing %nfrastructure 2inancing Tractor and 2arm H(uipment 2inancing SARA0 0oans 1orking 'apital 2inancing Team Structure

T2H lends to farmers J contractors for purchase of Tractors and other 2arm H(uipments for agri and commercial use. )otak 5ank entered tractor financing business on its con&ersion into bank and has been constantly gro ing in si!e and stature in the tractor industry. Today e ha&e co&ered all Agri hubs of the country and are emerging as leading tractor financiers among all pri&ate sector banks. 1e ha&e a idespread geographical reach to our customers.

88

SARA< <OAN
Ke& $eature"

'ommercial Oehicle 2inancing %nfrastructure 2inancing Tractor and 2arm H(uipment 2inancing SARA0 0oans Team Structure 1orking 'apital 2inancing

Saral 0oans is our platform to ensure that each of our customers needs is met. 1e pro&ide funding on used commercial &ehicles and construction e(uipment, assisting our customer through a hassle free process. Saral 0oans essentially funds customers for refinance of 'OJ'H assets in addition to catering to its orking capital needs. The focus here is on customers ho ha&e limited access or e#perience ith banking industry.

A 89

=ORKIN# 5A0ITA< $INAN5IN#

Ke& $eature"

'ommercial Oehicle 2inancing %nfrastructure 2inancing Tractor and 2arm H(uipment 2inancing SARA0 0oans 1orking 'apital 2inancing Team Structure

2%RST ,roup offers 1orking 'apital to contract operators and contractors. This caters to the day to day li(uidity needs of the customer. 1e take collateral of e(uipment, &ehicle or immo&able property or hypothecation of assets. To complete the entire range of product offerings, '*S etc. e ha&e a dedicated product team hich caters to the orking capital needs of the customers in the abo&e mentioned industries through products like '' J O+, 5,, 0',

90

KOTAK S153RIT>I1S <TD

)otak Securities 0td. is one of the oldest and leading stock broking houses in %ndia

ith a

market )otak Securities 0td. has also been the largest in %PO distribution. The accolades that )otak Securities has been graced ith includeL

=5est Performing H(uity 5roker in %ndia " 'D5' TO 9G= 3 Optimi# 2inancial Ad&isory A ards, F??G =5est 5rokerage 2irm in %ndia= by Asia money in F??E .The 0eading H(uity $ouse in %ndia- in Thomson H#tel Sur&eys A ards for the year F??E Huro money A ard 7F??N / F??E8 " 5est Pro&ider of Portfolio *anagement L H(uities A&aya 'ustomer Responsi&eness A ards 7F??N8 in 2inancial %nstitution Sector Asia money A ard 7F??N8" 5est 5roker %n %ndia Huro money A ard 7F??68"5est H(uities $ouse %n %ndia 2inance Asia A ard 7F??68"5est 5roker %n %ndia 2inance Asia A ard 7F??;8" %ndia=s best H(uity $ouse Prime Ranking A ard 7F??M"?;8" 0argest +istributor of %PO=s

The company has a full"fledged research di&ision in&ol&ed in *acro Hconomic studies, Sectoral research and 'ompany Specific H(uity Research combined ell net orked sales force and ne s. ith Dational Securities +epository ith a strong and hich helps deli&er current and up to date market information

)otak Securities 0td is also a depository participant

0imited 7DS+08 and 'entral +epository Ser&ices 0imited 7'+S08, pro&iding dual benefit 91

ser&ices e#ecuting

herein the in&estors can use the brokerage ser&ices of the company for the transactions and the depository ser&ices for settling them.

)otak Securities has GEE outlets ser&icing o&er ;,M?,??? customers and a co&erage of MF9 cities. )otaksecurities.com, the online di&ision of )otak Securities 0imited offers %nternet 5roking ser&ices and also online %PO and *utual 2und %n&estments. )otak Securities 0imited has o&er Rs. MM?? crore of Assets under *anagement 7AU*8 as of M9th *arch, F??G. The portfolio *anagement Ser&ices pro&ide top class ser&ice, catering to the high end of the market. Portfolio *anagement from )otak Securities comes as an ans er to those ho ould like to gro e#ponentially on the crest of the stock market, ith the backing of an e#pert

92

KOAK MAHINDRAIS INT1RNATIONA< B3SIN1SS

One of the leading financial ser&ices organi!ations in %ndia, )otak has significant presence in &arious businesses including commercial banking, retail banking, stock broking, asset management, life insurance and in&estment banking. 1ith an international presence since 9::;, the international subsidiaries of )otak *ahindra 5ank 0td. operating through offices in 0ondon, De speciali!e in managing a Qork, +ubai, *auritius, San 2rancisco and Singapore hich o&erseas ide range of %ndia in&estment funds through

in&estors can in&est in %ndia. %n&estors can access the asset management capabilities of the international subsidiaries through funds domiciled outside %ndia. 1e offer asset management ser&ices to institutions and high net through a range of offshore %ndian funds, as orth indi&iduals based outside %ndia ell as through specific ad&isory and ith a ide range of %ndia in&estment

discretionary in&estment management mandates for institutional in&estors. )otak is a differentiated solution pro&ider for %ndia in&estments solutions that span all major asset classes including listed e(uity, pri&ate e(uity, real estate and fi#ed income. 1e also lead manage and under rite international issuances of securities. 1ith its commendable track record, large presence on the ground and a large team of dedicated staff in %ndia, )otak is suitably positioned for managing assets in the %ndian 'apital markets. The international business of )otak offers &arious funds across different strategies to international in&estors only. 1e offer funds across fi&e broad strategiesL <ong Onl& Strateg& - 1ith a long only outlook, e manage funds across large

capitali!ation and mid"capitali!ation biases, a fund ithout a capitali!ation bias, a series of concentrated funds and thematic funds 7across sectors like infrastructure / realty8. 1e also manage a Shariah"compliant mandate.

Qua"i 0ri9ate 1Luit& Strateg& - 1ith this strategy, 93

e seek to in&est in listed, under"

researched mid3market companies in %ndia through secondary markets, P%PH, and %PO using a pri&ate e(uity approach. The in&estment team seeks to pro&ide acti&e post" in&estment &alue"add to in&estee companies here feasible.

D&nami% Strateg& - Under this strategy, market

e seek to generate absolute return by

e#ploiting the gro th in the %ndian economy and the price inefficiencies in the %ndian stock hile managing risk during &olatile periods to limit dra "do ns. 1ith a mi# of &aried strategies like 'ore H(uity, 0ongJShort H(uity, 0imited Risk, and 'ashJArbitrage gi&e the product a multi"dimensional nature, allo ing it to adapt to different stages of the market Debt Strateg& - 1ith this strategy, cycle. e aim to generate returns predominantly through

in&estments in debtJmoney market instruments and go&ernment securities in %ndia. The funds under this strategy offer differential risk and return options based on the in&estor-s &ie on interest rates, currencies and the in&estment hori!on. 9F month closed ended ith a lo to medium risk profile ho ha&e a directional &ie here in&estments are on interest rates as ithin the life of the product. 0ong funds are a&ailable for in&estors

primarily made into fi#ed term instruments maturing term debt funds are a&ailable to in&estors

the performance of the fund is dependent on changes in interest rate apart from income, if any, generated through income yielding instruments. %t should be noted that in&estments in %ndia are subject to the usual risks associated ith emerging markets, including but not limited to risk of losing some or all of the capital in&ested. 5a" Alternati9e Strateg& - Our arbitrage strategy pro&ides an opportunity to in&estors looking for lo &olatility and moderate %DR returns. 5y e&aluating the difference bet een e enter into trades o&er the here the carry positions. the price of a stock in the futures and spot market, s(uare

yield is higher than that of cash funds. +epending on the opportunities a&ailable, they may off or roll The )otak ,roup operates internationally through the follo ing three subsidiariesL Kotak Ma indra 83K; <imited 8KM3K; A 9??B subsidiary of )otak 7the parent company8, )*U) is one of the first firms of %ndian origin to be authori!ed and regulated by the 2inancial Ser&ices Authority in the United )ingdom. A member of the 0ondon Stock H#change, )*U) is registered ith the Securities H#change 5oard of %ndia as a 2oreign %nstitutional %n&estor 72%%8.

94

)*U) had its registered office in 0ondon, ith branch offices in +ubai and Singapore. %nfect it is the first %ndian company to be authori!ed to operate from its branch in the +ubai %nternational 2inancial 'entre, and is regulated by the +ubai 2inancial Ser&ices Authority. %t is also regulated by the *onetary Authority of Singapore.

Kotak Ma indra In%' 8KM In%;

Regulated by the 2inancial %ndustry Regulatory Authority 72%DRA8 in the United States, this subsidiary of the )otak *ahindra 5ank 0td, offers in&estors in the US, an opportunity to in&est in %ndia through a range of %ndia specific funds. )* %nc has its registered office in De

Qork ith a branch office in San 2rancisco.

Kotak Ma indra International <imited 8KMI<; ith the 2inancial Ser&ices

This subsidiary of )otak *ahindra 5ank 0td is registered 'ommission"*auritius.

)*%0 has a registered office in *auritius and a representati&e office in +ubai

95

R1S1AR5H M1THODO<O#>
R1S1AR5HEResearch as a scientific and systematic search for pertinent information on a specific topic. %n fact, research is an art of scientific in&estigation. Redman and Mor& define research as a Psystemati!ed efforts to gain ne kno ledge.X

A%%ording to 5lifford =ood& research comprises defining and redefining problem, formulating hypothesis or suggested solution, collection, organi!ing and e&aluating data, making deductions and reaching conclusions and at last carefully testing the conclusions to determine hether they fit the formulating hypothesis. T e "ear% for kno!ledge t roug ob:e%ti9e and "&"temati% met od of finding "olution to a problem i" re"ear% ' OB715TI(1S O$ R1S1AR5HE The purpose of research is to disco&er ans er to (uestions through the application of scientific procedures. The main aim of research is to find out the truth hich has not been disco&ered as yet. Objecti&es of Research areL" 9. To gain familiarity this object in &ie ith a phenomenon or to achie&e ne insights into it 7studies ith hich is hidden and

are termed as e#ploratory or formulati&e research studies8C are kno n as descripti&e research studies8C

F. To portray accurately the characteristic of a particular indi&idual, situation or a group 7 studies ith this object in &ie

96

M. To determine the fre(uency something else 7studies studies8C

ith

hich something occurs or

ith it is associated

ith

ith this object in &ie

are kno n as diagnostic research

;. To test a hypothesis of a causal relationship bet een &ariables 7such studies are kno n as hypothesis" testing research studies8

MOTI(ATION IN R1S1AR5H The possible moti&es for doing research areL" ,' +esire to get a research degree along ith its conse(uential benefits. *' +esire to face the challenge in sol&ing the unresol&ed problems. @' +esire to get intellectual joy of doing some creati&e ork. .' +esire to be of ser&ice to society. B' +esire to get respectability.

T&pe" of Re"ear% 9. De"%ripti9e 9"' Anal&ti%alE " +escripti&e research includes sur&eys and fact"findings en(uiries of different kinds.

*ajor purpose is description of the state of affairs as it e#ists at present. Under analytical the researcher has to use facts or information already a&ailable, and analy!e these to make a critical e&aluation of the material. F. Applied 9"' $undamentalEApplied aims at finding a solution for an industry. 2undamental is mainly concerned immediate problem facing a society or an ith generali!ations and 97 ith the formulation

of a theory. %t is directed to ards finding information that has a broad base of applications and ads to the already e#isting organi!ed body of scientific kno ledge. M. Quantitati9e 9"' Qualitati9eE " 4uantitati&e is based on the measurement of (uantity or amount. %t is applicable to phenomena that can be e#pressed in terms of (uantity. 4ualitati&e is concerned purpose. ;. 5on%eptual 9"' 1mpiri%alL " 'onceptual is related to some abstract ideas or theory. %t is used by philosophers and thinkers to de&elop ne concepts or to reinterpret e#isting ones. ith (ualitati&e phenomenon i.e. in&ol&ing (uality or kind. %t aims

at disco&ering the underlying moti&es and desires, using in depth inter&ie s for the

Hmpirical relies on e#perience or obser&ation alone. %t is data"based research coming up ith conclusions hich are capable of being &erified by obser&ation or e#periment. B. Ot er t&pe"E" One"time research or longitudinal research. C' $ield-"etting re"ear% or laborator& or "imulation re"ear% E+epending upon the en&ironment in hich it is to be carried out. ?' 1Hplorator& or $ormali"edE" H#ploratory is the de&elopment of hypotheses rather than their testing. 2ormali!ed are those ith substantial structure and ith specific hypotheses to be tested. D' Hi"tori%al or 5on%lu"ion-orientedE" $istorical hich utili!es historical sources like documents, remains, etc. to study e&ents or

ideas of the past. 'onclusion"oriented is free to pick up a problem, redesign the en(uiry as one proceeds and is prepared to conceptuali!e as one ishes. SI#NI$I5AN51 O$ R1S1AR5HE98

9. %t is careerism or a ay to attain a high position in the social structure. F. %t is a source of li&elihood for professionals. M. %t is the outlet for ne ideas and insights. styles and creati&e theories. ork ;. %t may mean the de&elopment of ne 6. %t may mean the generali!ations of ne

Thus, research is the fountain of kno ledge for the sake of kno ledge and an important source of pro&iding guidelines for sol&ing different business, go&ernmental and social problems.

Re"ear% 0ro%e""
%t consists of series of actions or steps necessary to effecti&ely carry out research and the desired se(uencing of these steps. 9. $ormulating t e re"ear% problemE A research problem refers to some difficulty hich a researcher e#periences in the ants to obtain a solution for the

conte#t of either a theoretical or practical situation and

same. %t re(uires a researcher to find out the best solution for the gi&en problem There are t o types of research problems 9. Those hich relate to states of nature F. Those hich relate to relationships bet een &ariables. At the &ery outset the researcher must single out the problem he ants to study, i.e., he ould like to

must decide the general area of interest or aspect of a subject"matter that he

in(uire into. Then, the feasibility of a particular solution has to be considered before a orking formulation of the problem can be set up. Hssentially, t o steps are in&ol&ed in formulating the research problem, &i!., understanding the problem thoroughly, and rephrasing the same into meaningful terms from an analytical point of &ie . The researcher must at the same time e#amine all a&ailable literature to get himself ac(uainted ith the selected problem. $e may re&ie t o types of literature 3 the conceptual literature concerning the concepts and theories, and the empirical literature consisting of studies made earlier outcome of this re&ie hich are similar to the one proposed. The basic hat data and other materials are ill be the kno ledge as to 99

a&ailable for operational purposes

hich

ill enable the researcher to specify his o n

research problem in a meaningful conte#t. After this the researcher rephrases the problem into analytical or operational terms i.e., to put the problem in as specific terms as possible. 2ormulation of the problem often follo s a se(uential pattern here a number of

formulations are set up, each formulation more specific than the proceeding one, each one phrased in more analytical terms, and each more realistic in terms of the a&ailable data and resources. F. 1Hten"i9e literature "ur9e&EOnce the problem is formulated, a brief summary of it should be compulsory for a research orker riting a thesis for a Ph+ degree to ritten do n. %t is rite a synopsis of ith

the topic and submit it to the necessary 'ommittee or the Research 5oard for appro&al. At this juncture the researcher should undertake e#tensi&e literature sur&ey connected the problem. 2or this purpose, the abstracting and inde#ing journals and published or unpublished bibliographies are the first place to go to. Academic journals, conference proceedings, go&ernment reports, books etc. must be tapped depending on the nature of the problem. %n this process, it should be remembered that one source another. The earlier studies, if any, ill lead to hich are similar to the study in hand, should be

carefully studied. A good library ill be a great help to the researcher at this stage. @' De9elopment of !orking &pot e"i"Eorking out and

After e#tensi&e literature sur&ey, researcher should state in clear terms the hypothesis. 1orking hypothesis is tentati&e assumption made in order to dra test its logical or empirical conse(uences. As such the manner in research. They also affect the manner in

hich research

hypothesis are de&eloped is particularly important since they pro&ide the focal point for hich tests must be conducted in the analysis of data and indirectly the (uality of data hich is re(uired for the analysis. $ypothesis should be &ery specific and limited to the piece of research in hand because it has to be tested. $o does one go about de&eloping orking hypothesis< ith e#perts about the problem, its origin and the objecti&es in seeking a

a8 +iscussions solution.

100

b8 H#amination of data and records, if a&ailable, concerning the problem for possible trends, peculiarities and other cues. c8 Re&ie of similar studies in the area or of the studies on similar problems. hich in&ol&es original field inter&ie s on a limited ith a &ie to secure greater insight into the

d8 H#ploratory personal in&estigation scale practical aspects of the problem. Thus,

ith interested parties and indi&iduals

orking hypothesis arise as a result of a"priori thinking about the subject, hen stated in precise e may

e#amination of the a&ailable data and material including related studies and the counsel of e#perts and interested parties. 1orking hypothesis is more useful and clearly defined terms. %t may as encounter a problem here e do not need ell be remembered that occasionally

orking hypothesis, especially in the case of

e#ploratory or formulati&e researches hich do not aim at testing the hypothesis. ;. 0reparing t e re"ear% de"ignEA research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine rele&ance to the research purpose procedure. %n fact, the research design is the conceptual structure data. The designing decisions happen to be in respect ofL a. 1hat is the study about< b. 1hy is the study being made< c. 1hat type of data is re(uired< d. $o ill the data be analy!ed< ithin ith economy in hich research

is conductedC it constitutes the blueprint for the collection, measurement and analysis of

The o&erall research design split into the follo ing partsL The sampling design hich deals ith the method of selecting items to be hich the

obser&ed for the gi&en study. The obser&ational design obser&ations are to be made The statistical design be obser&ed and ho hich concerns ith the (uestion of ho many items are to the information and data gathered are to be analy!ed 101 hich relates to the conditions under

The operational design

hich deals

ith the techni(ues by

hich the procedures

specified in the sampling, statistical and obser&ational designs can be carried out.

DI$$1R1NT R1S1AR5H D1SI#NS 9. Research design in case of e#ploratory research design" The main purpose of such studies is that formulating a problem for more precise in&estigation or of de&eloping the orking hypothesis from an operational point of &ie . F. Research design in case of descripti&e and diagnostic research studies" +escripti&e research studies are those studies determine the fre(uency else. M. Research design in case of hypothesis"testing research studies" $ypothesis"testing research studies are those relationships bet een &ariables. A fle#ible research design of e#ploration. The preparation of the research design, appropriate for a particular research problem, in&ol&es usually the consideration of the follo ingL a. the means of obtaining the information b. the a&ailability and skills of the researcher and his staff c. the time a&ailable for research d. the cost factor relating to research 102 hich pro&ides opportunity for considering many different here the researcher tests the hypothesis of casual ith hich are concerned ith describing the ith something characteristics of a particular indi&idual, or of a group, hereas diagnostic studies

hich something occurs or its association

aspects of a problem is considered appropriate if the purpose of the research study is that

6. Determine "ample de"ignE " A complete enumeration of all the items in the .population- is kno n as a census in(uiry. %t can be presumed that in such an in(uiry hen all the items are co&ered no ill get larger and larger element of chance is left and highest accuracy is obtained. 5ut in practice this may not be true. H&en the slightest element of bias in such an in(uiry as the number of obser&ations increase. The researcher must decide the the sample design. %n other ay of selecting a sample or hat is popularly kno n as

ords, a sample design is a definite plan determined before

any data are actually collected for obtaining a sample from a gi&en population. Samples can be either probability samples or non"probability samples. 1ith probability samples each element has a kno n probability of being included in the sample but the non" probability samples do not allo sampling the researcher to determine this probability. Probability samples are those based on simple random sampling, systematic sampling, and stratified hereas non"probability samples are those based on con&enience sampling, judgment sampling and (uota sampling techni(ues. ,' Deliberate "amplingE - is also kno n as purposi&e or non"probability sampling. This sampling method in&ol&es purposi&e or deliberate selection of particular units of the uni&erse for constituting a sample hich represents the uni&erse. A judgment sampling the researcher-s judgment is used for selecting items hich he considers as representi&e here the of the population. %t is (uite fre(uently in (ualitati&e research larger populations. *' Simple random "amplingE- This type of sampling is also kno n as chance sampling or probability sampling here each and e&ery item in the population has an e(ual chance of inclusion in the sample and each one of the possible samples, in case of finite uni&erse, has the same probability of being selected. @' S&"temati% "amplingE - %n such a design the selection process starts by picking some random point in the list and then e&ery nth element is selected until the desired number is secured. .' Stratified "amplingE - %f the population from hich a sample is to be dra n does not constitute a homogeneous group, then stratified 103

desire happens to be to de&elop hypothesis rather than to generali!e to

sampling techni(ue is applied so as to obtain a representati&e sample. %n this techni(ue, the population is stratified into a number of non" o&erlapping subpopulations or strata and sample items are selected from each stratum. %f the items selected from each stratum is based on simple random sampling the entire procedure, first stratification and then simple random sampling, is kno n as stratified random sampling B' Quota "amplingE - %n stratified sampling the cost of taking random samples from indi&idual strata is often so e#pensi&e that inter&ie ers are simply gi&en (uota to be filled from different strata, the actual selection of items for sample being left to the inter&ie er-s judgment. This is called (uota sampling. %t generally happens to be judgment samples rather than random samples. C' 5lu"ter "ampling and area "ampling L"'luster sampling in&ol&es grouping the population and then selecting the groups or the clusters rather than indi&idual elements for inclusion in the sample ?' Area "amplingL " 1e first di&ide the total area into a number of smaller non"o&erlapping areas, generally called geographical clusters, then a number of these smaller areas are randomly selected, and all units in these small areas are included in the sample. D' Multi-"tage "amplingL " Under multi"stage sampling the first stage may be to select large primary sampling units such as states, then districts, then to ns and finally certain families ithin to ns. %f the techni(ue of random sampling is applied at all stages, the sampling procedure is described as multi"stage random sampling. A' SeLuential "amplingL " This is some hat a comple# sample design here the ultimate si!e of the sample is not fi#ed in ad&ance but is determined according to mathematical decisions on the basis of information yielded as sur&ey progresses. The sample design to be used must be decided by the researcher taking into consideration the nature of the in(uiry and other related factors.

C' 5O<<15TIN# TH1 DATAE-

104

There are se&eral

ays of collecting the appropriate data

hich differ considerably in

conte#t of money cost, time and other resources at the disposal of the researcher. 1hile deciding about the method of data collection to be used for the study, the researcher should keep in mind t o types of data 8,; 0rimar& 8*; Se%ondar& 8,;0rimar& DataE " The primary data are those hich are collected afresh and for the first time, and thus happen to be original in character. %t can be collected either through e#periment or through sur&ey. %f the researcher conducts an e#periment, he obser&es some (uantitati&e measurement, or the data, follo ing aysL 7a8 5y Obser&ation 7b8 Through Personal %nter&ie 7c8 Through Telephone %nter&ie 7d8 5y *ailing Of 4uestionnaires 7e8 Through Schedules 8a; B& Ob"er9ationE - This method implies the collection of information by in&estigator-s o n obser&ation, obtained relates to ay of ith the help of hich he e#amines the truth contained in his hypothesis. 5ut in the case of a sur&ey, data can be collected by any one or more of the

ithout inter&ie ing the respondents. The information

hat is currently happening and is not complicated by either the past

beha&ior or future intentions or attitudes of respondents. The information pro&ided by this method is &ery limited. 8b; T roug 0er"onal Inter9ie!E - The in&estigator follo s a rigid procedure and seeks ans ers to a set of pre" concei&ed (uestions through personal inter&ie s. This method of collecting data is usually carried out in a structured ability of the inter&ie er to a large e#tent. 8%; T roug Telep one Inter9ie!E - This method of collecting information in&ol&es idely used method but ay here output depends upon the

contacting the respondents on telephone itself. This is not a &ery

105

it plays an important role in industrial sur&eys in de&eloped regions, particularly, sur&ey has to be accomplished in a &ery limited time.

hen the

8d; B& Mailing Of Que"tionnaireE - 4uestionnaire are mailed to the respondents

ith a

re(uest to return after completing the same. 4uestionnaire to be used must be prepared &ery carefully so that it may pro&e to be effecti&e in collecting the rele&ant information. %t is the most e#tensi&ely used method in &arious economic and business sur&eys. 8e; T roug S% edule"E - Under this method the enumerators are appointed and gi&en training. They are pro&ided ith schedules containing rele&ant (uestions. These enumerators go to respondents ith these schedules. +ata are collected by filling up the schedules by enumerators on the basis of replies gi&en by respondents. 8*;Se%ondar& DataE Secondary data means that are already a&ailable, they refer to the data data or unpublished data. Usually published data are a&ailable inL" Oarious publication of the central, state and local go&ernment. Oarious publications of foreign go&ernment or international bodies and their subsidiary organi!ation. Technical and trade journals. 5ooks, maga!ines and ne spapers. Reports and publications of &arious associations connected industry, bank, stock e#change etc. Reports prepared by research scholars, uni&ersities, economists etc. in different fields. Public records and statistics, historical documents and other source of published information ith business, hich ha&e already been collected and analy!ed by someone else. They may either be published

?' 1He%ution of t e pro:e%tL "

106

H#ecution of the project is a &ery important step in the research process. %f the e#ecution of the project proceeds on correct lines, the data to be collected ould be ade(uate and dependable. The researcher should see that the project is e#ecuted in a systematic manner and in time. %f the sur&ey is to be conducted by means of structured (uestionnaires, data can be readily machine"processed. %n such a situation, 4uestions as steps Should be taken to ensure that the sur&ey is under statistical control so that the collected information is in accordance method of dealing ith the pre"defined standard of accuracy. One ith the help of e#perts ith the non"response problem is top make a list of the non" ell as the possible ans ers may be coded. Thus, in other ords, the

respondents and takes a small sub"sample of them, and then &igorous efforts can be made for securing response. D' Anal&"i" of dataL"

After the data ha&e been collected, the researcher turns to the task of analy!ing them. The analysis of data re(uires a number of closely related operations such as establishment of categories, the application of these categories to ra coding, tabulation and then dra ing statistical inferences. 'oding" %s usually done at this stage through hich the categories of data are data through

transformed into symbols that may be tabulated and counted. 1ditingE - %s the procedure that impro&es the (uality of the data for coding. Tabulation" %s a part of the technical procedure form of tables. Analysis ork after tabulation is generally based on the computation of &arious ell defined statistical formulae. %n the ith original or hat &alidity e can herein the classified data are put in the

percentages, coefficients, etc., by applying &arious ne

process of analysis, relationships or differences supporting or conflicting

hypothesis should be subjected to tests of significance to determine ith

data can be said to indicate any conclusions. Through the use of statistical tests

establish hether such a difference is a real one or is the result of random fluctuations.

107

A' H&pot e"i"-te"tingL" After analy!ing the data as stated abo&e, the researcher is in a position to test the hypothesis, if any, he had formulated earlier. Oarious tests, such as 'hi s(uare test, t"test, 2"test, ha&e been de&eloped by statisticians for the purpose .The hypothesis may be tested through the use of one or more of such tests, depending upon the nature and object of research in(uiry. $ypothesis"testing or in rejecting it. ,+. #eneraliGation" and interpretationL " %f a hypothesis is tested and upheld se&eral times, it may be possible for the researcher to arri&e at generali!ations, i.e., to build a theory. As a matter of fact, the real &alue of research lies in its ability to arri&e at certain generali!ations. The process of interpretation may (uite often trigger off ne lead to further researches. ,,. 0reparation" of t e report or t e t e"i"L" 2inally, the researcher has to prepare the report of hat has been done by him. The layout of the report should be as follo s a' t e preliminar& page" b' t e main teHt %' T e end matter' The main te#t of the report should ha&e the follo ing partL a' Introdu%tionE " %t should contain a clear statement of the objecti&e of the research and an e#planation of the methodology adopted in accomplishing the research. b' Summar& of finding"L " After introduction there ould appear a statement of findings and recommendations in non"technical language. %' Main reportL " The main body of the report should be presented in logical se(uence and broken"do n into readily identifiable sections. d' 5on%lu"ionL " To ards the end of the main te#t, researcher should again put do n the results of his research clearly and precisely. %n fact, it is the final summing up. (uestions hich in turn may ill result in either accepting the hypothesis

108

At the end of the report, appendices should be enlisted in respect of all technical data. 5ibliography, i.e., list of books, journals, reports etc., consulted, should also be gi&en in the end. %nde# should also be gi&en specially in a published research report. Research is meant to get the kno ledge of latest trend pre&ailing in the market and to kno about the mood of the people. 5anking as it is said is the core of all corporate acti&ities, half the battle is on if the banking is in the right direction. As .the accepting, for the purpose of lending or in&estment, of deposits of money from the public, repayable on demand or other ise, and ithdra al by che(ue, draft, order or other ise-

TIT<1 O$ TH1 ST3D>E RHTA%0 5AD)%D, D3RATION O$ TH1 ST3D>E 96 +AQS OB715TI(1 O$ TH1 ST3D>E To study the products of kotak *ahindra bank in
retail banking

T>01 O$ R1S1AR5H E Hmpirical research

SAM0<1 SIR1 AND M1THOD O$ S1<15TIN# SAM0<1E

Sampling *ethod " 'on&enient sampling +ata Uni&erse 3 N? lakh Appro#. 7Raipur 'ity8 Sample Si!e 3 NE Primary +ata 3 4uestionnaires Secondary +ata 3 1ebsites and *aga!ines

MA7OR1 0<A51S (ISIT1D =1R1E 798 H#isting customers of kotak bank 7F8 %'%'% bank 7M8 ,0O5A0 Trust bank of %ndia 109

7;8 %+5% bank 5OM0ANI1S 798 0arsen /Turbo 7F8 *ahindra /*ahindra 7M8 0ucent Technology MARK1TS 9. ,aura& To er F. ,anpati pla!a M. Sagar Shopping 'omple# ;. Saraogi *anson The data as done made a&ailable through these (uestionnaires ho-s analyses as done by preparing the master orksheet. The facts /finding prepaid by analysis ere used to reach the conclusion / recommendations.

S5O01 O$ TH1 ST3D>E

,' IN(1STM1NTE %n&estment is the con&ersion of the sa&ings into monetary asset. This study as able to tell us about the in&estment decision are they thinking about in&esting there money. And in hich bank they like to in&est there money. Since in&estment is the real base of any bank so this study as helpful for in&estment. *' MARK1T 5O(1RA#1 $OR KOTAK 0ROD35TSE This study has ability to tell us about the market co&erage for kotak product or the future scope of its products. @' INT1RN1T BANKIN#E *ostly banks are pro&iding facility of internet banking by hich a customer can get easy access to its bank so banks can gi&e its customer this facility also because at present this bank is not pro&iding better access to its customer.

110

.' INSTIT3SIONA< BANKIN#E A large pool of institutions are about to land in our country so by pro&iding better facility bank can ha&e good profit. %nstitutions ha&e hea&y potential for banks .%n future these institution ill tap the %ndian market. B'INT1RNATIONA< TRAD1 E %nternational trade ha&e spread e&ery here and it has become a &ery need of any company .so by pro&iding facilities like bill discounting, forfeiting, e#port import bill finance etc bank can find ne opportunity for its banks.

C' R1TAI< BANKIN#E Retail banking is also an emerging field of banking sector in hich customer need not to come at bank so bank ha&e good scope for its products in retail banking. ?' #O(1RNM1NT INSTIT3TIONSE A lot of go&ernment institutions are still using con&entional banking practices so bank should think about tap this market because in this field a lot of opportunities can be made because go&ernment institutions ha&e large amount of idle fund hich by in&esting ill gi&e &ery good return to the bank. D' OR#ANIS1D S1R(I51SE Do in these days banks are pro&iding organi!ed ser&ices to the customer and this only bank hich is pro&iding interest on current accounts. So by using this ith other facility like auto s eep 7in hich idle amount in your account abo&e certain limit itself con&erted into fi#ed deposits and customer can get good interest on it8 internet banking etc. bank can tap a large market.

<IMITATIONS
The primary data as confined to only one branch of Raipur 'ity. Some respondents did not take the Sur&ey seriously and did not gi&e appropriate ans ers to the (uestions asked.

111

 Some customers sho ed no interest in ans ering the (uestions because of shortage of time. The analysis has been classified on the basis of &ie e#pressed by respondents.

$INDIN#S O$ TH1 R1S1AR5H

Q',' %n hich bank do you maintain your bank aJc< )OTA) 5AD) %'%'% S55R PD5 S5%
SBI 0NB,,P SBB7 CP .P Kotak Bank @AP

I5I5I .+P

F. +o you ha&e access to net< 112

QHS DO

M. Are you a are of )OTA) product<

QHS DO

;. +o you think that )OTA) bank is pro&iding good facility<

QHS DO

6. $a&e your e&er &isited the site of )OTA) bank branch<

113

A 5

N. +o you think )OTA) bank is orth in changing scenario<

A 5

E. 1ould you like to open you-re aJc in )OTA) bank<

QHS DO

114

S=OT ANA<>SIS

115

5ON5<3SION
There are so many people 5ank. *ajority of people access to net. A, lot of people agree to this thing that con&enient and time sa&ing. *ost of people agree that kotak 5ank ha&e good prestige in the retail market. ho are interested in opening their account in )otak

116

 )otak 5ank is a good profitable organi!ation. 1e came to conclusion that people think kotak bank is &ery safe ith tight security.

117

S3##1SSTIONS AND R15OMM1NDATIONS

The result of the study sho s that most of the customers

ho

ere made a are of

+irect 5anking 'hannels had started using them. So, the bank should keep the process ongoing for making the customers a are as usage of +irect 5anking 'hannel 2acilities. +uring the course of interaction fe customers had some problem regarding the ell as of impro&ing the

product and ser&ices pro&ided to them. So, the bank should take a step further to sol&ing the problem. 0ike fe customer complaint about being misguided by the

marketing e#ecuti&es, the problem as later sol&ed by the bank officers. The Sales e#ecuti&es responsible for account opening should e#plain and gi&e demo to the customers regarding the use of +5'. The bank should make the phone banking procedure a bit short as many customers find it a lengthier procedure to follo . 5ank staff should also restrict themsel&es in helping customers about their minor (ueries and inclined them to use +irect 5anking 'hannels. 5ranch should try to upgrade its Phone 5anking system to the agent basis from %OR.

118

Q31STIONNAIR1
Dame Address L L

4.9. %n hich bank do you maintain your bank account< 7a8 %'%'% 7d8 S5% 7b8 S55R 7c8 PD5

7e8 )OTA) *A$%D+RA 5AD)

7f8 Any other please specify [[[[[[[[[[[[[ 4.F. +o you ha&e an access to net< 7a8 Qes 7b8 Do

4.M. Are you a are of )OTA) Product< 7a8 Qes 7b8 Do

4.;. +o you thing that kotak 5ank is Pro&iding ,ood 2acility< 7a8 Qes 7b8 Do

4.6. $a&e your e&er &isited the site of kotak mahindra 5ank 5ranch< 7a8 Qes 7b8 Do

4.N. +o you think kotak mahindra 5ank is orth in changing scenario< 7a8 Qes 4.E. +o you kno 7b8 Do hat facilities are pro&ided by kotak mahindra 5ank<
119

7a8 Qes

7b8 Do

4.G. 1ould you like to open your account in kotak mahindra 5ank< 7a8 Qes 7b8 Do

4.:. Are you a are about +irect 5anking< 7a8 Qes 4.9?. +o you kno about< 7a8 Det 5anking 7b8 Phone 5anking 7c8 *obile 5anking 7d8 'ards Ser&ice 7b8 Do

120

BIB<IO#R0H>
=eb "ite"

)otaksecurities.com,

.kmutual.com

.amfhiindia.com

MagaGine"
Sahkar 5harti 5usiness %ndia Hconomic times.

Sear% 1ngine"
.google.com .yahoo.com .alta&ista.com

121