A Training Report submitted in partial fulfillemt of the requirements for the award of
Gauhati University on
NEW DELHI
Ashna Kalra
1
STUDENTS DECLARATION
Dr. M.P.Gutpa
( Industry Integrated )
TO
Is my original work and the same has not been submitted for the award of any other
2
CERTIFICATE
This is to certify that Ashna Kalra , a student of the Gauhati University has
Mahindra Bank and HDFC Bank under my guidance . She has fulfilled all
requirements under the regulations of the MBA (IIP) , Gauhati University , leading to
the MBA (IIP) degree . This work is the result of her own investigation and the project
; neither as a whole nor any part of it was submitted to any other University or
Dr. M. P. Gupta
Director General
3
CERTIFICATE OF THE ORGANISATION
To ,
The Director,
NIAM,
New Delhi.
This is to certify that Ms. Ashna Kalra of MBA ( Industry Integrated ) course of
management training at our organization from 15th April 2010 to 15th June 2010 .
Authorized signatory
4
ACKNOWLEDGEMENT
I would like to take this opportunity to express my deep sense of gratitude to all those
Firstly , i would like to thank Kotak Mahindra Bank , New Friends Colony
Branch , New Delhi , for having given me an opportunity to undergo summer training
in their company .
My deep-rooted respect and sincere gratitude to Mr. Deepesh Sharma (Branch Sales
Manager , Kotak Mahindra Bank ) who in spite of his busy schedule listened to my
problems and suggested prompt solutions . I am grateful to him for providing me with
all the necessary insights and inputs and helping me all throughout my summer
motivation to me .
I would also like to express my sincere gratitude to Dr. M.P. Gupta ( Director
members , colleagues and friends for their encouragement , support , guidance and
project report . All of them helped me immensely during the course of my training .
5
Last but not the least , my heartfelt thanks to my dear family members whose
of this project . Im thankful to them for their kind cooperation, advice and
encouragement during the long and arduous task of preparing this project report.
I hope that I have been successful in my endeavour. . However, I accept the sole
responsibility for any possible errors of omission and would be extremely grateful to
the readers of this project report if they bring such mistakes to my notice. .
6
CHAPTER 1 : INTRODUCTION
A bank is an institution that deals in money and its substitutes and provides
other financial services. Banks accept deposits and make loans or make an
investment to derive a profit from the difference in the interest rates paid and charged,
respectively .
India has a well developed banking system. Infact , without a sound and effective
banking system , India cannot have a healthy economy. The banking system of India
should not only be hassle free but it should be able to meet new challenges posed by
the technology and any other external and internal factors. For the past three decades
India's banking system has several outstanding achievements to its credit. The most
cosmopolitans in India. In fact, Indian banking system has reached even to the
remote corners of the country. This is one of the main reasons of India's growth
process
Most of the banks in India were founded by Indian entrepreneurs and visionaries in
budding Indian industrialists. The origin of banking in India can be traced back to
the last decades of the 18th century. The General Bank of India and the Bank of
Hindustan, which started in 1786 were the first banks in India. Both the banks are now
defunct. The oldest bank in existence in India at the moment is the State Bank of
7
India. The State Bank of India came into existence in 1806. At that time it was known
as the Bank of Calcutta. SBI is presently the largest commercial bank in the country.
economic and financial conditions here are better than in any other country. Liquidity,
credit, and market studies have proven Indian banks to be resilient. They have
The role of central banking in India is looked by the Reserve Bank of India,
which in 1935 formally took over these responsibilities from the then Imperial Bank
of India. Reserve Bank was nationalized in 1947 and was given broader powers. In
1969, 14 largest commercial banks were nationalized followed by six next largest in
1980. But with adoption of economic liberalization in 1991, private banking was
again allowed.
The central bank is the apex financial institution in the banking and financial system
the leader of the money market. It supervises, control and regulates the activities of
the commercial banks. It is a service oriented financial institution. The Reserve Bank
of India (RBI) is the topmost body monitoring the Banking Industry. Any
The banking industry in India is divided into scheduled and non-scheduled banks ie.
and Unscheduled Banks . Scheduled commercial Banks constitute those banks, which
have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934.
8
RBI includes only those banks in this schedule, which satisfy the criteria laid down
67,000 scheduled bank branches are located in India. They consist of cooperative
banks and commercial banks. The Public Sector Banks form the base of this sector
in India. These are those banks in which the Government of India holds a stake . They
account for 78% of the assets in the banking sector. The Private Sector banking is
also making headway. They are leading in mobile banking, phone banking, ATMs,
and Internet Banking sectors. The government doe not have any stake in these banks.
Now a days even foreign banks are increasingly establishing their base in India. JP
Morgan, Standard Chartered, Bank of America, and many other international banks
The government constantly encourages foreign investment in this sector, as the entry
of foreign players will help the sector to flourish . FDI in Indian banking can lead to
Even with the global recession, the investment in the banking industry is still
prevalent though the volume may have been reduced. FDI in India grew by 145%
between 2006 and 2007 and by 46.6% during 20072008. The FDI in 2009 was
down to 18.6%. However, with the recession abating the investments are sure to rise.
Overall, the Indian banking industry has immense potential for further growth
and expansion.
9
( 1.2 ) INDUSTRY PROFILE
Banking system in India has its roots in since ancient times. The first banks were the
religious temples of the ancient world, and were established in the third millennium
B.C. Temples were chosen as they were sacred and thus possibilities of a theft taking
place was minimal. The temple priest or the merchants were left with the work of
account keeping. Later on in the evolution of the banking system came the money
lenders (SAHUKARS) who are prominent even today in the villages of India. Despite
these early informal modes of banking, the first conventional bank in India, though
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of
India was established which started as private shareholders banks with mostly
Europeans shareholders.
In 1865 Allahabad Bank was established and was fir the first time set up exclusively
by Indians. Punjab National Bank Ltd. was set up in 1894 with its headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of
Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of
10
From 1786 till today, the journey of Indian Banking System can be segregated into
YEAR BANK
1786 General Bank of India
1807 Bank of Hindustan
1809 Bank of Bengal
1840 Bank of Bombay
1843 Bank of Madras
1865 1st bank established exclusively by Indians -Allahabad Bank
1894 Punjab Bank of India
Bank of India, Central Bank of India, Bank of Baroda,
1st PHASE
1. During the first phase the growth was very slow and banks also
came up with The Banking Companies Act, 1949 which was later changed
to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23
of 1965).
3. Reserve Bank of India was vested with extensive powers for the
11
controlled the banking environments and was conservative in its approach
4. Public had lesser confidence in the banking system and relied more on the
country was not very strong during those times people did not have enough
2nd PHASE
1. It was in the year 1955 that the Government took major steps towards the
and semi-urban areas. It formed State Bank of India to act as the principal
agent of RBI and to handle banking transactions of the Union and State
2. In the year 1969 a major drive to nationalize banks was carried out for
3. The nationalisation of these and the other banks 80% of the banking
fundamental base of these banks. Also these helped in gaining the faith and
confidence of the people in the banking system and these institutions. This
12
step helped the institutions in raising the levels of deposits and advances
4. The following are the steps taken by the Government of India to Regulate
3RD PHASE
This phase has introduced many more products and facilities in the banking
Narasimham, a committee was set up by his name which worked for the
which has shaped the success story of Indian banking system were done in this
13
It is result of these reforms that the people have options to choose which banker to
bank with. They are flooded with variety of options from which they can choose and
decide how they wish to invest their money. The country is flooded with foreign
banks and their ATM stations. Banks are putting sincere Efforts to give a satisfactory
service to customers. The entire system became more convenient and swift and
The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
A Sound and healthy banking system forms the backbone of any economy. The Indian
banking industry is going through competitive times. With the lowering of entry
14
barriers and liberalization of banking practices the competition has become intense
and scope of differentiation on the basis of products sold has significantly reduced.
Banks are now focusing more on services and maintaining customer relationships in
order to enhance their hold in the market. Net banking, phone banking, home banking
The competition is not just from the multinational and foreign banks but is also
emanating from within the banking system, financial sector reforms and domestic
players. All public sector banks, private sector and foreign banks along with non
banking finance companies are competing for the same segment. The fact that India
was only marginally affected by the financial turmoil in the western countries because
of its strong policies and sound regulations has only led to add to the already intense
competition in the industry. The news has reassured the public at large that the Indian
financial and banking systems have a strong base and thus it has helped more people
to invest in banks and also attract foreign bankers to India. This has lead to increasing
Indias banking sector is growing at a fast pace. India has become one of the most
preferred banking destinations in the world. The reasons are numerous: the economy
is growing at a rate of more than 8%, Bank credit is growing at 30% per annum and
there is an ever-expanding middle class of about 250 to 300 million people (larger
than the population of the US) in need of financial services. The rural market segment
is yet to be exploited. The disposable income with the public is growing, also there is
a change in mindset and people are no more against taking credits and loans. This has
significantly increased the potential Market for bankers. All this enables double-digit
15
returns on most asset classes which is not so in a majority of other countries. Foreign
banks in India achieving a return on assets (ROA) of 3%, their keen interest in
The interplay between policy and regulatory interventions and management strategies
will determine the performance of Indian banking over the next few years. Legislative
actions will shape the regulatory stance through six key elements: industry structure
governance; labor reforms and human capital development; and support for creating
the changing market; adopting value-creating M&A as an avenue for growth; and
opportunities. Through these scenarios, we can paint a picture of the events and
outcomes that will be the consequence of the actions of policy makers and bank
managements.
A healthy banking system is essential for any economy striving to achieve good
16
The Indian banking system has witnessed a series of reforms in the past, like
participation of private sector banks. It has also undergone rapid changes, reflecting a
number of underlying developments. This trend has created new competitive threats
The strong banking regulatory system has helped India to weather the storms of global
credit crunch. India's central bank RBI has already made cuts in Cash Reserve Ratio,
or CRR, and Statutory Liquidity Ratio, or SLR, to pump more liquidity into the
The future of banking will undoubtedly rest on risk management dynamics. Only
those banks that have efficient risk management system will survive in the market in
the long run. The effective management of credit risk is a critical component of
institution.
Consolidation :
Consolidation, which has been on the counter over the last year or so, is likely to
gather momentum in the coming years. Post April 2009, when the restrictions on
17
operations of foreign banks will go, the banking landscape is expected to change
dramatically. Foreign banks, which currently account for 5% of total deposits and 8%
of total advances, are devising new business models to capture the Indian market.
Despite the stiff resistance from certain segments, consolidation holds the key to
Owing to greater scale and size, consolidation can help save costs and improve
operational efficiency.
Banks will also have to explore different avenues for raising capital to meet norms
under Basel-II
engine.
Though there is no confirmation yet, speculative signals arising from the market point
to the prospect of consolidation involving banks such as Union Bank of India, Bank of
India, Bank of Baroda, Dena Bank, State Bank of Patiala, and Punjab and Sind Bank.
Further, the case for merger between stronger banks has also gained ground a clear
deviation from the past when only weak banks were thrust on stronger banks. There is
a case being made for mergers between banks with a distinct geographical presence
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Globalization :
Growing integration of economies and the markets around the world is making global
banking a reality. The surge in globalization of finance has already begun to gain
momentum with the technological advancements which have effectively overcome the
national borders in the financial services business. Widespread use of internet banking
will widen frontiers of global banking, and make marketing of financial products and
services on a global basis possible. In the coming years globalization will spread
further on account of the likely opening up of financial services under WTO. India is
one of the 104 signatories of Financial Services Agreement (FSA) of 1997. This gives
As per Indian Banks' Association report Banking Industry Vision 2010, there would
be greater presence of international players in Indian financial system and some of the
Indian banks would become global players in the coming years. So, the new mantra
for Indian banks is to go global in search of new markets, customers and profits.
Technology :
There is an imperative need for not mere technology upgradation but also its
integration with the general way of functioning of banks to give them an edge in
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respect of services provided to their constituents, better housekeeping, optimizing the
use of funds and building up of MIS for decision making, better management of assets
& liabilities and the risks assumed which in turn have a direct impact on the balance
services and cost savings in the form of an electronic, self-service product delivery
channel. These challenges call for a new, more dynamic, aggressive and challenging
paradigm shift in the banking industry. The explosive growth of both the Internet and
mobile and wireless technology is revolutionizing the way the financial industry
Regulations :
The RBI's approval for banks to raise funds abroad through innovative capital
shares, will, however, not just substitute equity; it could have unintended
consequences on the strategies of banks and their profitability. While the cost of
raising monies through such instruments is likely to be higher (close to 10 per cent),
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return on net worth. This is because the same amount of capital supports a higher
Skilled Manpower :
There will be a sea change for employees too. Secure jobs will be replaced by
contractual appointments, for a specified period of time. The unions will merge into
the shadows and bank managements will turn effective. As a result there will be
swifter turn over of personnel in banks. But at the same time, skilled personnel from
Factors like skills, attitudes and knowledge of the human capital play a crucial role in
resources indicates the ability of banks to deliver value to customers. Capital and
technology are replicable but not the human capital which needs to be valued as a
incorporated.
Future Challenges :
Competition
Customer Retention
21
Globalization
Shrinking Margin
Some Suggestions :
campaigns
CONCLUSION:
What will the future of Indian banking look like? Will the reform in banking sectors
face the same fate as in power and telecom? It is increasingly evident that the
economy offers opportunities but no security! Therefore, the future will belong to
those who develop good internal controls, checks and balances and a sound market
strategy. Business Growth, Cost Efficiency and Evolution are therefore regarded as
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Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the financial needs of individuals and corporates. The group has a net worth
of over Rs. 2,900 crore, employs around 8,800 people in its various businesses and
offices across 282 cities and towns in India and offices in New York, London, Dubai
financial company. In February 2003, Kotak Mahindra Finance Ltd, the group's
flagship company was given the license to carry on banking business by the Reserve
Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian
The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive Vice
Directors in the company. A stake in the group was taken in by industrialists Harish
Mahindra and Anand Mahindra and this is the time when the company changed its
The following diagram shows a picture of kotaks success through the years.
23
1.2 GROWTH AND DEVELOPMENT OF THE ORGANISATION
Within a small span of 6 years, the bank has spread it wings in several sphere of
finances. Presently, spread in 82 cities in India, the bank caters to the needs of its 5.9
24
million customers spread throughout the length and breadth of country and even
abroad. By the end of FY 2007-2008, the Kotak Mahindra Bank had about 178
branches spread all over the country and it plans to add some more branches by the
end of FY 2010.
The bank is one of the most admired financial services providers in India because of
its state-of-the-art financial solutions for countless needs of individual and corporate
clients. In addition to Internet banking and phone banking, the bank provides suitable
banking facilities through SMS services, Mobile banking, Home banking, Netc@rd
The entire Kotak Mahindra group has a net worth of over Rs. 6,327 crore and at the
end of FYP 2007-2008,it was reported that the consolidated profit of Kotak Mahindra
Bank individually was Rs 991.2 crore which was 84% higher than the consolidated
profit of Rs 538.2 crore in FY07. Kotak Mahindra Bank has 75 ATMs at 41 locations
in the country which are 24x7 accessible. Before the free transactions facility of RBI
was made mandatory to all the ATM operating banks in India from April 1, 2009,
Kotak Mahindra Bank had underwent under a treaty with the HDFC Bank to provide
free network free of cost to most of its customers through its 1335 ATMs spread in the
Year Milestone
1986 Mahindra Finance Limited starts the activity of Bill Discounting
1987 Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
The Investment Banking Division is started. Takes over FICOM, one of India's
1991
largest financial retail marketing networks
25
1992 Enters the Funds Syndication sector
Brokerage and Distribution businesses incorporated into a separate company -
1996 significant stake in Ford Credit Mahindra Limited, for financing Ford vehicles.
The launch of Matrix Information Services Limited marks the Group's entry into
information distribution.
Enters the mutual fund market with the launch of Mahindra Asset Management
1998
Company.
2000 Mahindra ties up with Old Mutual plc. for the Life Insurance business.
Securities launches its on-line broking site (now www.securities.com).
26
(2.3) PRESENT STATUS OF THE ORGANISATION
Kotak Mahindra Bank Ltd. is presently one of the finest banking services providers in
India. The specialized products by Kotak Mahindra Bank India that drive mass
interest among the customers are Kotak Mahindra Life Insurance and other insurance
products, Kotak Mahindra Mutual Fund, and Kotak Mahindra Securities, Kotak
Mahindra Bank Credit Cards, Kotak Mahindra Bank Home Loan products, Kotak
Mahindra Bank personal loan, Kotak Mahindra Bank Visa C@rd and many more
products.
The Group's principal activity is to provide banking and related services. The Group
operates in four business segments: Treasury and Balance Sheet Management Unit
27
includes lending, commercial vehicle finance, personal loans, agriculture finance,
other loans and home loans, Branch banking, which includes retail borrowings
covering savings, current, term deposit accounts and branch banking network/services
which comprises wholesale borrowings and lendings and other related services to the
Banking Accounts
Demat
Deposits
NRI Services
Convenience Banking
Life Insurance
Mutual Funds
Share Trading
Structured Products
Car Finance
28
Home Loans
Personal Loans
Corporate Finance
Investment Banking
Institutional Equities
Treasury
Marketing
campaigns and promotions which would help in meeting the business targets and
We provide support at two broad levels - Branch Marketing and Central Marketing.
Human Resource
29
The HR professional contributes to the organization by constantly assessing the
work practices. To promote the overall success of his organization, he champions the
identification of the organizational mission, vision, values, goals and action plans.
Finally, he helps determine the measures that will tell his organization how well it is
Wholesale Bank
We offer corporate clients & institutions a complete range of highly focused banking
services & solutions. Our service offerings are specially structured, taking into
account client's specific needs and keeping in perspective their risk profile. Kotak
Bank will offer all services, products & solutions in keeping with the credit & risk
management philosophy & policies of the Bank as well as in keeping with the relevant
The image of a typical operations unit has changed over the years from a processing
centre to a more customer focused service delivery unit. RL-Ops facilitates the
customer to establish a relationship with the bank. The Retail Liabilities Central
Processing Centre (RL-CPC Mumbai) functions as a hub for processing the account
opening forms sourced from Western India, over and above the centralised activities
30
such as Direct Banking/Salary Uploads/Account Closures for PAN India. Regional
Processing Centre (RPC) Ahmedabad caters to branches in Gujarat, RPC Delhi caters
to the branches in North and Eastern part of India while RPC Chennai caters to
Technology
Technology has opened up new markets, new products, new services and efficient
delivery channels for the banking industry. Online electronics banking, mobile
Information Technology has also provided banking industry with the wherewithal to
deal with the challenges the new economy poses. Information technology has been the
cornerstone of recent financial sector reforms aimed at increasing the speed and
The IT revolution has set the stage for unprecedented increase in financial activity
across the globe. The progress of technology and the development of world wide
the customers who are more demanding and are also more techno-savvy compared to
their counterparts of the yester years. They demand instant, anytime and anywhere
banking facilities.
IT has been providing solutions to banks to take care of their accounting and back
office requirements. This has, however, now given way to large scale usage in
services aimed at the customer of the banks. IT also facilitates the introduction of new
31
delivery channels--in the form of Automated Teller Machines, Net Banking, Mobile
Banking and the like. Further, IT deployment has assumed such high levels that it is
systems not only across branches in a city but also to other geographic locations with
high-speed network infrastructure, and setting up local area and wide area networks
and connecting them to the Internet. As a result, information systems and networks are
The Kotak group comprises of Kotak Mahindra Capital Company, Kotak Securities,
Group Structure.
Advisors Limited, Global Investments Opportunities Fund, Kotak Mahindra
26% held by
IP Os Stock broking Investment Car Finance Mutual fund Trustee Company
Old Mutual
Private equity & other
eBroking Lending
Project advisory lending Life insurance
M&A Distribution
History
HDFC Bank was incorporated in the year of 1994 by Housing Development Finance
among the first companies to receive an 'in principle' approval from the Reserve Bank
of India (RBI) to set up a bank in the private sector.The Bank commenced its
operations as a Scheduled Commercial Bank in January 1995 with the help of RBI's
liberalization policies. HDFC Bank was the first bank in India to launch an
International Debit Card in association with VISA (VISA Electron) and issues
33
In a milestone transaction in the Indian banking industry, Times Bank Limited
(promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank
Ltd., in 2000. This was the first merger of two private banks in India. As per the
scheme of amalgamation approved by the shareholders of both banks and the Reserve
Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for
In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total
branches to more than 1,000. The amalgamated bank emerged with a strong deposit
base of around Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The
network, geographic reach, and customer base, and a bigger pool of skilled
manpower.
1.1.
HDFC was incorporated in 1977 with the primary objective of meeting a social need -
their housing needs. HDFC was promoted with an initial share capital of Rs. 100
million.
Business Objectives
The primary objective of HDFC is to enhance residential housing stock in the country
through the provision of housing finance in a systematic and professional manner, and
34
the housing sector by integrating the housing finance sector with the overall domestic
financial markets.
Organisational Goals
HDFC's main goals are to a) develop close relationships with individual households,
b) maintain its position as the premier housing finance institution in the country, c)
transform ideas into viable and creative solutions, d) provide consistently high returns
client base.
Geographical Presence
Bank at present has an enviable network of 1,725 branches spread in 779 cities across
India.All branches are linked on an online real-time basis. Customers in over 500
locations are also serviced through Telephone Banking. The Bank also
has 4,232networked ATMs across these cities. The bank is looking at countries such
as Canada and Singapore to expand its branch networks abroad.The bank has already
applied for licenses in Bahrain and Hong Kong and currently having a representative
office in Dubai.
The Bank's target market ranges from large, blue-chip manufacturing companies in
the Indian corp to small & mid-sized corporates and agri-based businesses Under
35
HDFC Bank Mission and Objective
be a preferred provider of banking services for target retail and wholesale customer
segments, and to achieve a healthy growth in profitability, consistent with the Bank's
risk appetite.
Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a
world of financial benefits and privileged banking transactions. The account carries
transactions. You will find that this package of services and privileges is unmatched
36
Wide network of branches and over thousand ATMs to meet all your banking
your account balance, pay utility bills or stop cheque payment, through SMS.
Never overspend- Shop using your International Debit Card that reflects the
Personalised cheques with your name printed on each cheque leaf for
enhanced security.
Take advantage of BillPay, an instant solution to all your frequent utility bill
payments. Instruct for payment over the phone or through the Internet.
Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saverfacility
on your account.
Free InstaAlerts for all account holders for lifetime of the account.
(individuals)
37
Description of
Regular Savings Account
Charges
Semi-urban)
By maintaining an average quarterly balance of just Rs. 25,000/- one get a host of
Features
HDFC Bank ATMs & at all non HDFC Bank domestic ATMs using your
Free Gold Debit Card for primary account holder for lifetime of the account.
38
Free Woman's Advantage/International Debit Card for all account holders for
Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit
of Rs. 2 lac per month. Above Rs. 2 lac, charge of Rs.3.50/- per Rs. 1,000/- on
50,000/- per day free. Above Rs 50,000 a charge of Rs 2.90 per thousand on
1day period
Free BillPay & InstaAlerts for all account holders for lifetime of the account.
SPECIAL PREVILEGES
Insurance Benefits One can enjoy an Accidental Hospitalization cover of Rs. 1lac
per annum on Savings Max account. One can also claim daily cash allowance at
Rs.1,000/- per day for a maximum of 15 days per year, for each day of hospitalization
39
due to an accident. This is a re-imbursement cover, extended only to the first holder of
the Savings Max account. It would be applicable after the completion of the 1st
calendar quarter, post the quarter of a/c opening. Eg. If the Savings Max a/c is opened
in August 2009, the insurance benefit will apply only from January 2010. For the
claim to be accepted & processed, the first holder of the Savings Max account should
Rs. 25,000/- (irrespective of enjoying the benefit of a zero balance account with a
Fixed Deposit of minimum Rs. 1,00,000/-) in the calendar quarter previous to the
quarter of the date of accident. One should have done at least 1 purchase - point of
sale (POS) transaction at a merchant establishment using the Debit Card in the
Plus Current Account, Trade A/c, Premium A/c, Regular A/c, Flexi A/c, Apex
FEATURES
Free up to 50 Demand Drafts per month and can be issued from any HDFC
Bank Branch
40
Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC
Bank Branch.
secure and hassle-free. Now, you can enjoy the benefits of banking right at
your doorstep. The Bank will arrange to render the services like Cash &
financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group
The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its
representative offices and satellite offices across 282 cities and towns in India and
offices in New York, London, Dubai and Mauritius. The Group services around 2
41
SAVING ACCOUNT PRODUCT OFFERING:
Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a
world of financial benefits and privileged banking transactions. The account carries
transactions.
Free access at all domestic and international VISA ATMs: One no longer have to
worry about locating your Bank or Partner Bank ATM - Use the first VISA ATM that
Multiple access channels: Access your account anytime through your land line,
mobile phone or internet to get information on your account balance or track your
transactions. One can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account: Use the free Kotak
Payment Gateway to make online payments for your utility bills, credit cards, online
42
Quick and easy funds transfer: Transfer funds easily and with speed, to a beneficiary
account at another bank. One can avail of this facility by walking into any of our
branches or by simple logging on to Net Banking. Account holder also gets a free
multi-city cheque book so that money from his account is transferred to the
beneficiary's account at any of kotak branch locations, in the fastest possible time.
Free banking transactions: One can issue demand drafts or send cheques for collection
Active Money: Helps earn better returns in savings account, with the ActivMoney
facility that automatically sweeps out idle funds, above a threshold, from the account
into Term Deposits. These Term Deposits are sweep back into the account to meet
fund requirements when one withdrawals exceed the balance available in the account,
Free investment account: Use the Net Banking facility to purchase/redeem mutual
funds online while directly debiting / crediting ones bank account. Further, a free
investment account for tracking your investments with the Bank is provided. This
account provides a consolidated view of all your mutual fund investments across
schemes with updated returns status, latest NAV information and research reports.
Dedicated relationship manager: Account holder gets a one point contact for all
banking related queries and transactions. The relationship manager is qualified to help
with financial planning and sound investment decisions in order to meet financial
goals.
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Family Savings Account: The Kotak Ace Savings package allows customers to extend
the Kotak banking experience to three of his family members. Under this scheme one
is eligible to open 3 Edge Savings Account with NMC waiver on all 3 accounts, so
Online trading account : Link the savings account to your online trading with Kotak
Securities to enable transfer of funds from your bank account to your account with
Kotak Mahindra Banks Pro Savings Account is an account packed with powerful
requirement. It is one of the best products being offered in the entire industry.
Unlimited Access to your bank account at over 35,000 VISA and Cash net
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Quick and easy funds transfer Unlike the Ace account this facility is available
ActivMoney
Family Savings Account Unlike Ace Under this scheme one is eligible to
open Only 1 Edge Savings Account with NMC waiver so long as the AQB of
Unlimited Access
Quick and easy funds transfer Quick funds transfer to a third party account
ActivMoney
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Family Savings Account Under this scheme one is eligible to open Only 1
4. Home Banking
5. ActivMoney - Interest is paid on these as per the no. of days for which these
actually remain as TD! For earning any interest, a swept out TD < 15 lakhs
should remain for a min of 15 days & for a swept out TD > or = 15 lakhs, it
6. Charges Reversal Offer (Only for NEO Current Account)- For accounts that
maintain an average bal of Rs. 25,000 or more, over the term of the account, in
a financial year, 50% of all charges levied for the services & transactions
availed during the year, shall be reversed centrally at the end of each financial
year. Reversals capped at a max. limit of Rs. 1000 p.a. NMC charges
excluded. Account should be open at the end of the financial year & should not
be in TOD/ Dormancy.
approvals.
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8. KValue - Unsecured OD offered to firms >3 yrs old. No hypothecation of
stocks etc. involved but financials like balance sheet, P&L statement, bank
9. OD against TD
11. Web Pay - A highly secured Internet based Banking system to transfer the
Kotak Mahindra Bank from anywhere and anytime. Customer can make
charges etc. automatically through multiple account fund transfers through file
upload facility.
12. Visa Money Transfer for Credit Card Payments & Funds Transfer
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CHAPTER 3 : DISCUSSIONS ON TRAINING
Taking LMS
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My summer training of 2 months has been a complete learning experience , When I
joined this esteemed organization , my organization guide told me to take the inhouse
undergo within the first 9 months of joining the organization . These are conducted on
the computer system and we can take them at any time convenient to us . These exams
LMS consists of about 100 papers which covers all aspects of banking . For every
exam paper , study material is available in the form of powerpoint presentations and
and word dpcuments . These are available of the intranet of the company . We just
need to log in with our specific employee id and password , refer to the material ,
It is a common practice in banks to sell products and services and never look back
thereafter . Since all salesmen are always chasing their monthly targets , taking out
time to talk to their existing clients and understanding any current need or any other
problems with respect to the products and services of the bank , is often rare . I
capitalized on this opportunity . I took the data of 500 clients or more from my fellow
In these calls , I thanked the customer for being a member of the Kotak family and
then resolved any issues and complaints that they were facing . This not only widened
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my horizon in terms of understanding products and services better but also gave me a
Since no organization can survive without making profits and profit is only made after
doing sales , I had to perform the same role . I made tele- calls to customers ie. Both
existing and non-existing and persuaded and convinced them to buy the companys
products . Although 80 % prospects dont even bother to hear you , I had to struggle
I was happy to sell 3 savings account , one demat / trading account and one term
At times my boss would give me some routine operational tasks to perform such as
1. I read extensively about many topics since I had to appear for LMS . This
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2. Since I made service calls to clients , I became aware of the different kinds of
resolved .
3. While marketing and pitching company products , I got aware of the various
offerings by the bank and also learnt the effective ways of converting a
4. The daily operational activities taught me how to use the different softwares
WORDS .
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( 4.2 ) STATEMENT OF RESEARCH OBJECTIVES
account and current account between Kotak Mahindra Bank and HDFC Bank.
Research Design
Area of study
The study has been carried out for the customers of Kotak Mahindra and HDFC banks
Sources of data
Primary data has been collected by handing out questionnaires to customers of Kotak
Mahindra and HDFC banks. The study has also used secondary data obtained from
Sampling technique
Simple random sampling technique has been used to generate a sample of customers
Sample size
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100 questionnaires were handed out randomly to respondents of which 88 held
held accounts in other banks and therefore their preferences became irrelevant to the
To study the differences in the performance of Kotak Mahindra and HDFC banks, the
questionnaire was used as a tool to analyse the customer preferences of both the
accounts .
CHAPTER 5 : ANALYSIS
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STRENGTHS:
Professional management
Strong technology
NPA is at 1.30%, Total Deposits Rs15, 645 crore, Net Advances Rs16, 625 crore,
WEAKNESS:
OPPORTUNITIES:
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Mass Banking
THREATS:
Competition
Rising Rates
Other better saving, investment option available (like Insurance, Mutual fund, Real-
estate, Gold)
STRENGTHS
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Right strategy for the right products.
WEAKNESSES
Sect oral growth is constrained by low unemployment levels and competitive staff.
OPPORTUNITIES
Introduction of new engineered products and better service applications by the bank.
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An applied research center to create opportunities for developing techniques to
THREATS
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1. Distribution of different types of accounts held by the customers of Kotak
The results of the data collected show that there is no difference in the types of
accounts that are held in the two banks. Out of 44 respondents of Kotak Mahindra
Bank 33 respondents have a savings account which is similar to the data of HDFC
Bank.
In both the banks customer preference is more towards availing a lower AQB account.
In case of Kotak Bank 30 out of 44 respondents availed Edge account (the lowest
level account offered). This again highlights that Kotak Mahindra Bank can capitalize
on the opportunity to convert these account holders into Ace or Pro account holders
The graph highlights that in HDFC Bank there is more number of customers using
higher end current account product than Kotak Mahindra Bank customers. In Kotak
Mahindra Bank there are more users of Edge Current Account than Ace or Pro
account. Thus there lies an opportunity for Kotak Bank to lure the customers to adopt
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4. Distribution of income (per month) earned by the customers of Kotak
The income reported by the respondents of the two banks is similar. The difference in
the type of customers of the two banks lies in the fact that Kotak Mahindra Bank has
customers whose income per month is greater than Rs. 1 lac. However out of 44
respondents of HDFC Bank no one had an income level greater than Rs. 1 lac.
The data shows that 75% of the customers of Kotak Mahindra Bank have to wait less
than ten minutes for their transaction to process. Only 25% of respondents have to
wait for more than ten minutes. However in case of HDFC Bank 75% of the
respondents have to wait for more than ten minutes for their transaction to process.
Out of 44 respondents of HDFC Bank 38 respondents feel that the branches of HDFC
bank are easily accessible to them. Only 13% customers of HDFC Bank feel that the
bank branches are not easily accessible. However in case of Kotak Mahindra Bank
31% of the respondents feel that branches of the bank are not easily accessible. This
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implies that there is a need to increase the number of branches for Kotak
Mahindra Bank.
7. Accessibility of ATMs
Out of 44 respondents of HDFC Bank 9% customers of HDFC Bank feel that the bank
ATM is not easily accessible. However in case of Kotak Mahindra Bank 31% of the
respondents feel that ATM of the bank is not easily accessible. Chi Square test was
conducted for the sample data of 88 respondents to see whether there is a significant
difference in the accessibility of ATMs by the customers of Kotak Mahindra Bank and
HDFC bank.
The respondents of HDFC bank view both net banking and branch banking modes of
branch banking than net banking. Kotak Mahindra Bank could take measures to
improve and promote net banking and educate its customers about net banking to
improve its performance. This is also important because respondents feel that the
branches of Kotak bank are not easily accessible. Thus to expand its customer base
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Of the total 44 respondents of Kotak Mahindra Bank 68% of the respondents feel that
the bank should increase its working hours. Only 32% of the respondents feel that
there is no need of increasing the working hours of the bank. Chi Square test was
conducted for the sample data of 88 respondents to see whether there is a significant
difference felt in the need to increase the working hours by the customers of Kotak
The data shows that approximately 75% of the customers of Kotak Mahindra Bank
have to wait less than five minutes for their transaction to process. Only 27% of
respondents have to wait for more than five minutes. However in case of HDFC Bank
61% of the respondents have to wait for more than five minutes for their transaction o
process.
70% respondents of Kotak Mahindra Bank feel that they receive information
regarding their accounts by the bank within proper time. Only 15% of the respondents
of the bank feel that they do not receive timely information from the bank. However
the data collected from HDFC bank shows that 52% respondents feel they receive
timely information whereas 47% respondents felt that they do not receive updates of
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information timely. This suggests that Kotak Bank provides better services than
HDFC Bank.
In both the banks maximum number of respondents keep an average monthly balance
More than half of the respondents of HDFC Bank feel that they are not satisfied
with the bank. On the other hand only 34% of the customers of Kotak bank feel
that they are not satisfied with the bank. This clearly highlights the efficiency of
Mahindra Bank and HDFC Bank with respect to the knowledge of bank
employees.
The data reveals that 93% of the customers of Kotak Mahindra Bank feel that the bank
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( 6.1 ) SUMMARY OF LEARNING EXPERIENCE
I read extensively about many topics since I had to appear for LMS . This
Since I made service calls to clients , I became aware of the different kinds of
resolved .
While marketing and pitching company products , I got aware of the various
offerings by the bank and also learnt the effective ways of converting a
The daily operational activities taught me how to use the different softwares
WORDS .
63
Suggestion for the HDFC BANK
HDFC must focus on the quality of service they are providing thus resulting
Should work on improvement of the Banking Process and Systems for the
Growth.
HDFC must look forward toward hiring of competent staff to provide quality
services.
Arrangement of more & more motivational Activities for the Staff to achieve
the Target.
Must appoint the active employees in the Bank for the Fast Working Process.
Using the right Strategy for increase the Sales for the Product.
Demand.
APPENDIX
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QUESTIONNAIRE
Dear Respondent, I am Ashna Kalra , student of Global school of Business, New Dehli. I request you to
please fill this questionnaire. I assure you that information shared will be kept confidential.
Name _________________________ E -mail Address __________________________
Location _________________________ Contact No. __________________________
If you bank with Kotak Mahindra, proceed to question 3, else proceed to question 6.
3. Which Current Account do you hold with Kotak Mahindra Bank?
Ace Elite Pro Edge Neo
Premium Regular
8. Rate (on a scale of 10) the following bank services offered by HDFC Bank that you find most
useful.(Please do not give same ratings to any of the two services)
Accessibility to bank
Minimum Balance required to be maintained
DD/ pay order services
Free Cheques facility
Cheques pick up and drop facility (home banking)
Net banking and Mobile Banking facilities available
NEFT and RTGS facilities provided
No. of ATM of the bank
Customer relationship services
10. Are your bank branches easily accessible to you?
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Yes No
11. Are your bank ATM easily accessible to you?
Yes No
12. Which modes of banking do you prefer more?
Yes No
15. How long do you have to wait in your banks branch for your transaction to process?
Yes No Sometimes
18. What is the average monthly balance you maintain in your account?
_____________________________________________________________
BIBLIOGRAPHY
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Philip kotler Marketing Management
Management
Internet www.google.co.in
www.kotak.com
www.bis.org
www.hdfcbank.com
www.moneycontrol.com
http://papers.ssrn.com
www.scribd.com
www.rbi.org.in
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