EXECUTIVE SUMMARY

This project was carried out for Kotak Mahindra bank. The objective of
the survey conducted was to know the current account of the customer and what
facilities get through the bank.

My summer project topic is “Alliances of Kotak Mahindra debit card

customer” and cum lead generation for potential current accounts”. And my job
timing is 11:00am to 5:00pm; this topic is assigned to three students.

In the alliances of Kotak Mahindra debit card customer we get the target
of 30 potential retail shops and we have to convince the retailers to give
10%discount to customers on Kotak debit card and in return name of the retail
shop and Kotak will be attached and displayed in all banks and ATMs of Kotak
Mahindra bank through candies, leaflets and pamphlets. The most interesting
part of this topic is that this project will be implemented by the bank.

In the cum lead generation for potential current account I feel marketing
is very hard work but not impossible We are three student in each group and my
target is convince ten leading business man about provide good facility from
kotak Mahindra bank . We are doing the work with enjoy. It’s not very difficult
job because only my job is get information about current account of his/her. It
means we get the information where your current account and what types of
extra facility provide your banks. And after that we convince that person and told
him, our bank is giving four extra facilities from your banks.
There are four extra facility provide kotak Mahindra bank
1.) Interest of current account.
2.) Home banking facility.
3.) Dedicate to relationship management.
4.) Cash credit / over drab facility.
We are not doing force open new current account in kotak. But my target
is at list convince ten leading business man for open current account in kotak.

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 INTRODUCTION

Established in 1985, the Kotak Mahindra group has been one of India's
reputed financial organizations. It was previously known as the Kotak Mahindra
Finance Limited, a non-banking financial organization.

In February 2003, Kotak Mahindra Finance Ltd, the group's flagship

company was given the license to carry on banking business by the Reserve
Bank of India (RBI). This approval created banking history since Kotak
Mahindra Finance Ltd. is the first non-banking finance company in India to
convert itself in to a bank as Kotak Mahindra Bank Ltd. The bank has a base of
8000+ employees.

Within a small span of 6 years, the bank has spread it wings in several
sphere of finances. Presently, spread in 82 cities in India, the bank caters to the
needs of its 5.9 million customers spread throughout the length and breadth of
country and even abroad.

Kotak Mahindra Bank has over 217 branches spread across 126 locations
in the country offering both traditional banking products and investment
advisory services. The Bank has the products, the experience, the infrastructure
and most importantly the commitment to deliver pragmatic, end to- end solutions
that really work.

The Bank offers comprehensive business solutions that include Trade

Services, Cash Management Service and Credit facilities, keeping in mind the
needs of the business community.

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 INDUSTRY PROFILE

1985

- The company was incorporated on 21st November, 1985 under the

name Kotak Capital Management Finance Ltd. The Company has been
promoted by Mr. Uday S Kotak, Mr. S.A.A Pinto and Kotak & Company. The
Company obtained the certificate of commencement of business on 11 th
February, 1986 and the Existing promoters were joined by Mr. Harish Mahindra
and Mr. Anand Mahindra. The Company's name was changed on 8th April, 1986
to its present name Kotak Mahindra Finance Ltd.

- The Company deals in Bill discounting, leasing and hire purchase,

corporate finance, management of fixed deposit mobilization, financing against
securities, money market operations, consumer finance, investment banking and
clients' money management.

1990

3, 08,770 No. of equity shares subscribed for by the promoters,

Directors, 3,41,230 No. of equity shares allotted as rights as on 28.3.89.
19,50,000 shares issued as bonus (6,50,000 shares in prop. 1:1 as on 29.7.89 and
13,00,000 shares in prop. 1:1 as on 27.2.91).

1991
An application was made to SEBI for approval for setting up a Mutual
Fund trust and an Asset Management Company. The newly set up Corporate

3
Advisory Services Group received several mandates for advice on mergers and
acquisitions and re-structuring.

The Company's newly established Foreign Exchange Risk Management

Service carters to the vast potential demand for price risk management.

The Company established itself as a major leasing and hire-purchase

company and as a source of finance for purchasers of automobiles.

1994
The Company entered into a Memorandum of Understanding with KB
Currency Advisors Inc. USA to market their Foreign Exchange Fund
Management program.

183,65,500 Rights equity shares issued in prop. 1:1. 11,800 No. of

equity shares forfeited. The Company has received
1995

The Company issued 4,00,000 - 17% Secured Redeemable Non-

convertible Debenture of Rs 2500 each including 96000 - 16% NCDs reserved
for NRIs/URB (only 9510 taken-up). Unsubscribed portion of 90 debentures
issued to the public. These are redeemable at par on 7.3.2001 with an option for
early redemption up to a maximum of 5% of the issue amount every year.

The Company entered into a joint venture agreement with Ford Credit
International Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA. It was
proposed to finance all non Ford Passenger cars.

1997

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 In recognition of the Company's prudent funds management, CRISIL has
assigned a rating of AA+ to the Company's public issue of Non-Convertible
Debentures and P1+ for all short term borrowings up to Rs.35000 lakhs.
Kotak Mahindra Finance Ltd, has decided to venture into health
insurance business.
Kotak Mahindra Finance has launched a new consumer finance Product
called Kotak Mahindra K-Value.

Hamko is a 100 per cent subsidiary of KMFL and investment in it was

structured to avoid limitations of Section 372 under the Companies Act.

The company has diversified into various activities for which it has set
up subsidiaries including broking, capital market activities, auto finance, etc.

1998

Kotak Mahindra Asset Management Company Limited (KMAMCL)

launched its mutual fund schemes in December.
The Company it would launch its mutual fund with two schemes KGilt
Unit Scheme and K30 Unit Scheme.
Kotak Mahindra Finance is a joint venture with Goldman Sachs.

2000

Kotak Mahindra Finance Ltd (KMFL) and Chubb Corporation of the US

have decided to call off their joint venture for entering the general insurance
business in India.

The Company has decided to set up a venture capital fund with an initial
corpus of Rs. 100 core.

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 KMFL has set up a new asset reconstruction division to offer recovery
management services to players in the financial services industry.

The Company Issue of 91,82,500 No. of Equity Shares of Rs. 10/- each
for cash at a premium of Rs. 90/- per share aggregating Rs. 91,82,50,000 to the
Equity Shareholders of the Company on Rights basis in the ratio of one equity
share for every our equity shares held on 15th February.

Mr. K.K. Sheth has resigned effective from May 8. Kotak Securities an
affiliate of Kotak Mahindra Finance Ltd., has launched electronic broking
services for retail investors.

Kotak Mahindra Finance is in talks with foreign insurers insurers for a

joint venture in the life insurance business.

The Company has proposed to start-up capital of Rs 150 crore in its life
insurance joint venture with Old Mutual, the UK based financial services group.

The Company proposes to make the necessary applications to the RBI

and the Insurance Regulatory and Development Authority for entering the life
insurance business.

OM Kotak Mahindra Life Insurance Company, the recently formed joint

venture company of Kotak Mahindra Finance and Old Mutual Plc has filed its
application for approval of life insurance license on 1st September.

Kotak Mahindra Finance Ltd has been assigned Ind AAA rating
(indicating highest credit quality) for its Rs.510 million medium term borrowing
programmer.

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 Fitch India has assigned a rating of Ind AAA to the Rs 51-crore medium
term borrowing program of Kotak Mahindra Finance Ltd for high credit quality
and negligible risk factor.

2001
The Company recommended a swap ratio of 25 shares of KMFL for
every share of Pannier Trading which has a 75 per cent equity stake in Kotak
Securities.

The Bharath Petroleum Corporation Ltd (BPCL) has decided to part

ways with Kotak Mahindra, one of the leading domestic financial services
company, in its convenient store venture In & Out.

2003

Madison Communications has won the Rs.30cr Kotak Mahindra's

media AOR account.

The proposal of changing the name from 'Kotak Mahindra Finance

Ltd' to 'Kotak Mahindra Bank Ltd' and the proposal to change the Authorized
capital from 100,00,00,000 divided into 10,00,00,000 equity shares of Rs.10
each has been approved by the company shareholders.
RBI has granted license to Kotak Mahindra Finance Ltd to embark on
its banking business.
O & M has got the creative account of Kotak Mahindra Bank, and has
said to be working professionally.
Kotak Mahindra Bank has received a lot of interest from portfolio
investors, private equity investors and potential.
Kotak Mahindra Bank has entered into an ATM sharing agreement
with UTI Bank, which would allow KMB's customer free access to around 800
ATM's.

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 Kotak Mahindra Bank has started its operations in New Delhi b
inaugurating a branch Connaught place office. Dr.Shankar Acharya has been
appointed as the Additional Director to the board of the bank.

Company profile

Chairman K.M.Gherda

Executive vice chairman& Uday Kotak

Managing director

Chairman of boards of directors Shankar Acharya

Registered office Nariman Bhawan

Mumbai

Established In February 2003.

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Corporate identity:

The symbol of the infinite Ka reflects our global Indian personality. The
Ka is uniquely Indian while its curve forms the infinity sign which is universal.
One of the basis tenets of economics is that man’s needs are unlimited. The
infinite Ka symbolizes that we have infinite number of way’s to meet those
needs.

The composition of the Board of Directors of the Bank is governed by

the Banking Regulation Act, 1949 and Clause 49 of the Listing Agreement. The
Board of Directors comprises a combination of executive and non-executive
Directors.

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 The Board mix provides a combination of professionalism, knowledge
and experience required in the banking industry. The responsibility of the Board
inter alia includes formulation of policies, taking new initiatives, performance
review, monitoring of plans, pursuing of policies and procedures.

Kotak Mahindra Bank amongst Hewitt’s ‘Top 25 Best Employers’

Ranks 1st amongst the BFSI segment, second time in a row-

Kotak Mahindra Bank, one of India’s leading private banks has bagged
the Hewitt Best Employer’s in India award for the second time in a row. The
Award was received by Mr. Subhro Bhaduri Executive Vice President-HR, Kotak
Mahindra Bank.

The Hewitt Best Employer awardees have been selected by an

independent jury comprising of eminent members from the Industry and
academic world. The 2009 study also introduced new research initiatives to
evaluate how new dimensions such as personal values, CSR, and workplace
diversity impact human capital management for business growth and witnessed
participation from over 230 organizations. The views of over 800,000 employees
have been represented by over 46,000 employees across India, making this one
of the largest employee research studies conducted in the country.

FUTURE OUTLOOK

Your Bank expects to expand its banking activities over the next one year
by setting up additional branches in major cities around the country. With the
expansion of the branch network, your Bank expects to broad base the product
offering with a view to deepening relationships with customers.

The commercial vehicle market has seen a robust growth over the past
few months and your Bank expects to increase its market share in the financing

10
business. With the development of the national highway projects, an increase is
also expected in the construction equipment financing business.

Your Bank proposes to expand its geographical reach in the personal

loans business. It has now put in place the requisite infrastructure, systems and
processes for financing housing loans and this business is expected to grow
during the current year.
Your Bank is in the process of setting up a comprehensive cash
management system offering customer services in the collections and payments
area. It expects to play a more active role in financing small and medium
enterprises, largely through capturing supply chain businesses.

The key challenge over the next year would be to establish the required
branch banking infrastructure and leverage on the large existing customer base to
develop a robust retail banking base.
Kotak Mahindra Bank Limited has informed that the Bank's equity shares will be
delisted from The Stock Exchange, Ahmedabad with effect from January 20,
2004.

Kotak Mahindra, one of leading financial services companies, The company also
unveiled its new corporate identity on the occasion. The bank will open its door
to retail and corporate clients on March 31. It also plans to invest Rs. 120 crores
over three years for infrastructure, technology and personnel.

The promoters' stake in the bank, which is at 62 per cent at present, will be
brought down to 49 per cent according to the Reserve Bank of India stipulation.

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The bank will be the parent holding company with five subsidiaries under it. The
total net worth of the group is Rs. 1,400 crores. At present, the net NPAs is at
0.01 per cent.

Backed by 20 years of expertise in the financial services business, Kotak will

offer complete practical financial solutions from retail finance, stock broking,
mutual funds, life insurance to investment banking.

From the first day of operations, the bank customers will have access to over 800
ATMs free of cost, through a sharing agreement with UTI Bank. Additionally,
the customers will have access to the entire VISA network of 4,500 ATMs in
India and eight lakh ATMs worldwide, at a nominal cost and will get Visa debit
cards, accepted in more than 56,000 establishments across India and over ten
million establishments worldwide.

The bank plans to grow in its existing line of businesses of commercial vehicles,
personal loans, trade finance and capital market. It also plans to enter into
housing finance in 2003-04. The new bank is planning to establish 75 branches
in the next three years and 25 branches by March 2004. The bank is targeting
high net worth clients, mainly in Mumbai and Delhi and subsequently in other
cities. It will aggressively sell savings accounts and current accounts to lower
their cost of funds. The bank will integrate all financial solutions under a single
roof and also act as an outlet for the products and services provided by the
subsidiary companies. The bank and its subsidiaries have a network spread
around 50 locations in India and its client base of over five lakh customers.

PRODUCT PROFILE

The product services of the Kotak Mahindra group comprise the following areas.

• Bank
• Kotak Realty Fund

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 • Credit Cards
• Kotak Private Equity
• Life Insurance
• International Business
• Mutual Fund
• Investment Banking
• Car Finance
• Institutional Equities
• Securities

Product services of the Kotak Mahindra Bank Limited encompass a wide arena.
They can be broadly put under the heads of Banking and Savings, Corporate and
Institutional, Investments and Insurance and Loans and Borrowings.

These main service provision areas again have a number of sub-areas under
them.

Banking and Savings

• Banking and Accounts

• Convenience Banking
• Credit Cards
• NRI Services
• Demat
• Deposits

Corporate and Institutional

• Corporate Finance
• Treasury

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 • Investment Banking
• Institutional Equities

Investments and Insurance

• Life Insurance
• Estate Planning
• Mutual Funds
• Gold
• Share Trading
• Structured Products

Loans and Borrowings

• Car Finance
• Commercial Loans
• Home Loans
• Personal Loans
• Loans Against Property

Kotak Mahindra Bank Limited also sponsors Kotak Mahindra Mutual fund.
Kotak Star Kid is the new offer from Kotak Mahindra Mutual fund. It is a unique
product which is essentially a mutual fund along with insurance coverage
available in a single package.

1. Gold Debit Card

Gold Debit Card, a 'fully loaded' Visa Debit Card with unlimited free access to
all the VISA ATMs in India and worldwide. The card also has higher purchase
and cash withdrawal limits –Rs.1, 75,000 per day purchase limits and Rs.1,
75,000 cash withdrawal limit.

In addition to the above, the Kotak Gold Debit card also allows for the complete
waiver of the fuel surcharge across all petrol pumps anywhere in India,

14
irrespective of the amount of the transaction. Our discerning customer also
enjoys Gold lifestyle benefits (offers on fine dining,
travel, etc.)

2. ACE ACCOUNT
Ace Deposit is a unique product from Kotak Mahindra Bank Limited. It
combines the prospective of lucrative returns from an equity fund along with the
stability and safety of a Fixed Deposit. Here the monthly interest accruing to
one's term deposit is channelized for investment in mutual funds as per a
systematic investment plan. The safety of the principal amount on the fixed
deposit is guaranteed. The interest income becomes linked to the prospect of
market-linked returns.

3. CAR LOANS

Kotak Mahindra Bank Limited Car Loans come from Kotak Mahindra Prime
Limited a subsidiary unit of Kotak Mahindra Bank Ltd. The company provides
finance options for and multi-utility vehicles including cars. Kotak Mahindra
Prime Limited provides car dealers with inventory funding. It is also the
preferred financier of a number of car manufactures in the country.

4. HOME LOANS

Kotak Mahindra Bank Limited Home Loans comes with a host of attractive
features. Some of the salient features are described below.

• Wide array of offerings

• Absence of hidden charges
• Pre-approved sanctions
• Life insurance options
• Personal accident insurance, which is free

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Vanilla Home Loan, Fixed Deposit linked Home Loans and Kotak Flexi Home
Loan are some home loan offerings from Kotak Mahindra Bank Limited.

5. PERSONAL LOANS

Loans Against Property is a unique product from Kotak Mahindra. This loan can
be used for issues like debt consolidation, educational finance, emergencies and
the like.

Some key features of this loan are given below.

• Heightened loan eligibility for businesspersons

• Loans are available against both commercial and residential properties
• Personal accident insurance comes free with the loan
• Loan range is from Rs.10 lakh to Rs.3 crore

6. SAVINGS ACCOUNT

It provides quick & convenient banking transactions along with options for your
money to earn high returns. The savings account goes beyond the traditional role
of savings, to provide you a range of services from funds transfer options to
online payments of bills to attractive returns earned through a comprehensive
suite of investment options.

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Features & Benefits:

1. Free access at all domestic and international VISA ATMs You no longer
have to worry about locating your Bank or Partner Bank ATM - Use the
first VISA ATM that you spot, for free cash withdrawal or balance
enquiry transactions. So walk into any VISA ATM in India or abroad to
withdraw cash or for balance enquiry.
2. Multiple access channels Access your account anytime through your land
line, mobile phone or internet to get information on your account balance
or track your transactions. You can even transfer funds through Phone
Banking or Net Banking.
3. Financial payments facilitated through the savings account Use the free
Kotak Payment Gateway to make online payments for your utility bills,
credit cards, online trading of shares or even online shopping. All this at
the click of a mouse!
4. Quick and easy funds transfer funds easily and with speed, to a
beneficiary account at another bank. You can avail of this facility by
walking into any of our branches or by simple logging on to Net
Banking. You also get a free multi-city cheque book so that money from
your account is transferred to the beneficiary's account at any of our
branch locations, in the fastest possible time.
5. Free banking transactions you can issue demand drafts or send cheques
for collection anywhere in the country for no extra charge.
6. ActivMoney Earn better returns in your savings account, with our
ActivMoney facility that automatically sweeps out idle funds, above a
threshold, from your account into Term Deposits. These Term Deposits
sweep back into your account to meet fund requirements when your
withdrawals exceed the balance available in your account, thereby
providing you maximum liquidity.

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 7. Free investment account Use the Net Banking facility to purchase/redeem
mutual funds online while directly debiting / crediting your bank account.
Further, you get a free investment account for tracking your investments
with the Bank. This account provides you a consolidated view of all your
mutual fund investments across schemes with updated returns status,
latest NAV information and research reports.
8. Dedicated relationship manager you get a one point contact for all your
banking related queries and transactions. Your relationship manager is
qualified to help you with financial planning and sound investment
decisions in order to meet your financial goals.
9. Family Savings Account the Kotak Ace Savings package allows you to
extend the Kotak banking experience to three of your family members.
Under this scheme you are eligible to open 3 Edge Savings Account with
NMC waiver on all 3 accounts, so long as the AQB of your ACE account
is maintained.
10. Online trading account Link your savings account to your online trading
with Kotak Securities to enable transfer of funds from your bank account to
your account with Kotak Securities and vice versa.
11. Kotak Mahindra Bank’s Pro Savings Account is an account packed with
powerful features to provide you a superior banking experience at a very
comfortable balance requirement. We provide you a relationship manager
who will specifically take care of your banking and investment needs.

18
 CONCEPT OF PROJECT

My summer project topic is “Alliances of Kotak Mahindra debit card customer”.

This topic is assigned to three students. In this project we get the target of 30
potential retail shops and we have to convince the retailers to give 10%discount
to customers on Kotak debit card and in return name of the retail shop and Kotak
will be attached and displayed in all banks and ATMs of Kotak Mahindra bank
through candies, leaflets and pamphlets. The most interesting part of this topic is
that this project will be implemented by the bank.

THE RETAIL SHOPS IN WHICH I MADE THE TIE-

UPS WITH KOTAK ARE AS FOLLOWS:
WEEK 1: KHAITAN MARKET {IWENT TO THIS MARKET WHERE
POTENTIAL RETAILERS ARE THERE .THIS MARKET IS MAINLY
KNOWN FOR SAREES & SUITS}

*NAME OF THE SHOP: JEEVAN’S (SIYARAM’SFASHION AVENUE)

OWNER’S NAME: MANOJ AGARWAL (10% DISCOUNT)

*NAME OF THE SHOP: SAVERA (A BOMBAY DYING SHOW ROOM)

OWNER’S NAME: SANJAY AGARWAL (10%DISCOUNT)

*NAME OF THE SHOP: SAAS-BAHU

OWNER’S NAME: AJAY KUMAR MORE (10%DISCOUNT)

*NAME OF THE SHOP: GRIH SHOBHA

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OWNER”S NAME: PANKAJ KUMAR (10%DISCOUNT)

WEEK 2: DAKBUNGLOW ROAD {THIS PLACE IS THE HEART OF THE

PATNA WHERE BIG & BRANDED SHOPS ARE THERE.HERE MAINLY
CROWD OF THE HIGH CLASS PEOPLE}

*NAME OF THE SHOP: SWADESHI

OWNER’S NAME: SANJIV RASTOGI (10%DISCOUNT)

*NAME OF THE SHOP: BHARAT MILAP

OWNER’S NAME: MD.SALAUDDIN (10%DISCOUNT)

*NAME OF THE SHOP: KARISHMA LIFE STYLE

OWNER’S NAME: AJAY MANSAROVAR (10%DISCOUNT)

WEEK 3: DAKBUNGLOW ROAD

*NAME OF THE SHOP: NAYANI

OWNER’S NAME: AJAY KUMAR GUPTA (10%DISCOUNT ONLY ON
SUIT PEASES)

*NAME OF THE SHOP: HI FASHION

OWNER’S NAME: BRAJESH KUMAR SINHA (10%DISCOUNT)

*NAME OF THE SHOP: MOTA BHAI

OWNER’S NAME: SANWAR AGARWAL (10%DISCOUNT)

NAME OF THE SHOP: RAJ RATAN JEWELLERS

OWNER’S NAME: VISHAL KESHARI (5%DISCOUNT)

WEEK 4: DAKBUNGLOW ROAD AND BORING ROAD

NAME OF THE SHOP: DOMASHAH MOHANLAL JEWELLERS

OWNER’S NAME: SHASHANK KEHARI (10%DISCOUNT ONLY ON
MAKING CHARGE)

NAME OF THE SHOP: EASY WEAR

OWNER’S NAME: RAJESH KUMAR RASTOGI (10%DISCOUNT ONLY ON
READYMADE GARMENTS)

NAME OF THE SHOP: INTERNATIONAL LEATHER WORK

OWNER’S NAME: FAISAL

WEEK 5: BORING ROAD {THIS IS ALSO A WELL KNOWN AREA OF THE

PATNA. HERE I FOUND VARIOUS TYPES OF RETAILERS ARE THERE
AND ALSO KNOWN TO EVERYONE IN PATNA}

*NAME OF THE SHOP: QWEEN’S

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OWNER’S NAME: ALOK BHOJGARHIA (10%DISCOUNT)

NAME OF THE SHOP: RADHA

OWNER’S NAME: KANODIA (7%DISCOUNT ON BRANDED AND
10%DISCOUNT ON NON BRANDED)

NAME OF THE SHOP: MADHURI

OWNER’S NAME: VIJAY AGARWAL (10%DISCOUNT)

NAME OF THE SHOP: BABA AND BABY

OWNER’S NAME: NILESH (10%DISCOUNT)

TIE-UP With Indian airlines

Kotak Mahindra Bank is proud to announce the launch of its Payment Gateway
tie up with Indian Airlines. Indian Airlines, one of the largest airlines in the
country, covers more than 75 destinations within and outside India. With its fully
owned subsidiary Alliance Air, Indian Airlines has a fleet of more than 70
aircrafts. Indian Airlines has enabled e-Ticketing on its website www.indian-
airlines.in in addition to issuance of tickets across the counter.

Our tie up with Indian Airlines enables the customers of Kotak Mahindra Bank
to pay for tickets booked on Indian Airlines website using Kotak Mahindra Bank
Net Banking user ID and password. Kotak Mahindra Bank is the first private
sector bank to launch this service on Indian Airlines website. The service is
available free of cost to all customers registered for Kotak Bank Payment
Gateway service.

Payment Gateway access not only enables purchase on Indian Airlines website
but also enables a customer to transfer money to Kotak Securities account, make
purchases on more than 3000 merchants websites, pay VISA credit card bills
online, transfer money online to any VISA debit card within the country, pay
utility bills, make donations and pay for subscriptions online across more than 60
billions.

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The company will ally or forge informal ties with companies in the US, Europe,
Australia and South Africa. The first partner may be from Japan declining to
name the company or provide a timeframe.

“We have to do a lot more cross-border, so we are tying up with various partners.
We have to have a footprint like, say, Goldman or UBS AG. To be able to match
that we have to have alliances. The Mumbai-based group ended its alliance with
Goldman in 2006.

Kotak Mahindra, which is the fourth-ranked adviser on mergers in India last

year, has slipped to 18th position in 2008, behind firms including the New York-
based Morgan Stanley and the Tokyo-based Nomura Holdings. Kotak Mahindra
advised Hutchison Essar last year on its sale to Vodafone Group, the biggest
transaction in India.

NTT DoCoMo, Japan’s biggest mobile-phone operator, agreed to pay $2.7

billion for a 26 per cent stake in Tata Teleservices to expand into the world’s
fastest-growing major wireless market.

Earlier this month, Daiichi Sankyo, Japan’s third-biggest drugmaker, completed

its purchase of a controlling-stake in Ranbaxy Laboratories to tap the faster-
growing market for generic medicines.Nayar expects more Japanese companies
to buy assets in India.

“They need India to grow, they did that in South Korea. “They have the money
and their currency is strong.’’

The value of mergers and acquisitions in India has fallen to $48 billion this year
from a record $67 billion in 2007, according to Bloomberg data.

ALLIANCES FOR KOTAK MAHINDARA BANK

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Kotak Mahindra Bank is planning to sign up new overseas alliances with
financial firms as the global credit crisis forces local businesses to sell stakes
overseas. “Indian promoters will sell out,” managing director, Kotak Mahindra
Capital Company. They will realize “it is a struggle to continue running the
company in a down-environment and there will be greater motivation to sell.’’

OBJECTIVES OF PROJECTS

• To gather information about performance of bank (or banking services in

Patna)

• To identify the satisfaction level of customer towards banking services.

• To perceive the customers potential level of expectation towards banking

services both present and future.

IN THE ALLIANCES OF KOTAK MAHINDRA DEBIT

CARD CUSTOMER:

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 • In this project I get the target of 30 potential retail shops and I have to
convince the retailers to give the 10% discount to customers on kotak
debit card in return name of retail shops kotak will attached and
displayed in bank of kotak Mahindra bank through pamphlets, leaflets
and candies.

TRAINING DEFINED
It is a learning process that involves the acquisition of knowledge,
sharpening of skills, concepts, rules, or changing of attitudes and behaviors to
enhance the performance of employees.
Training is activity leading to skilled behavior.

• It’s not what you want in life, but it’s knowing how to reach it.
• It’s not where you want to go, but it’s knowing how to get there.
• It’s not how high you want to rise, but it’s knowing how to take off.
• It may not be quite the outcome you were aiming for, but it will be an
outcome.
• It’s not what you dream of doing, but it’s having the knowledge to do it.
• It's not a set of goals, but it’s more like a vision.

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 • It’s not the goal you set, but it’s what you need to achieve it.

Training is about knowing where you stand (no matter how good or bad the
current situation looks) at present, and where you will be after some point of
time.Training is about the acquisition of knowledge, skills, and abilities
(KSA) through professional development.
ROLE OF TRAINING:

Business

Changes and
Challenges

Learning and

Business
Excellence

Importance of Training:

• Optimum Utilization of Human Resources – Training and Development

helps in optimizing the utilization of human resource that further helps the
employee to achieve the organizational goals as well as their individual goals.

• Development of Human Resources – Training and Development helps

to provide an opportunity and broad structure for the development of human
resources’ technical and behavioral skills in an organization. It also helps the
employees in attaining personal growth.

25
 • Development of skills of employees – Training and Development helps
in increasing the job knowledge and skills of employees at each level. It helps to
expand the horizons of human intellect and an overall personality of the
employees.

• Productivity – Training and Development helps in increasing the

productivity of the employees that helps the organization further to achieve its
long-term goal.

• Team spirit – Training and Development helps in inculcating the sense

of team work, team spirit, and inter-team collaborations. It helps in inculcating
the zeal to learn within the employees.

• Organization Culture – Training and Development helps to develop and

improve the organizational health culture and effectiveness. It helps in creating
the learning culture within the organization.

• Organization Climate – Training and Development helps building the

positive perception and feeling about the organization. The employees get these
feelings from leaders, subordinates, and peers.

• Quality – Training and Development helps in improving upon the

quality of work and work-life.

• Healthy work-environment – Training and Development helps in

creating the healthy working environment. It helps to build good employee,
relationship so that individual goals aligns with organizational goal.

• Health and Safety – Training and Development helps in improving the

health and safety of the organization thus preventing obsolescence.

26
 • Morale – Training and Development helps in improving the morale of
the work force.

• Image – Training and Development helps in creating a better corporate

image.

• Profitability – Training and Development leads to improved

profitability and more positive attitudes towards profit orientation.

• Training and Development aids in organizational development i.e.

Organization gets more effective decision making and problem solving. It helps
in understanding and carrying out organizational policies

• Training and Development helps in developing leadership skills,

motivation, loyalty, better attitudes, and other aspects that successful workers
and managers usually display.

Importance of Training Objectives:

Training objective is one of the most important parts of training program.

While some people think of training objective as a waste of valuable time. The
counterargument here is that resources are always limited and the training
objectives actually lead the design of training. It provides the clear guidelines
and develops the training program in less time because objectives focus
specifically on needs. It helps in adhering to a plan. Training objectives tell the
trainee that what is expected out of him at the end of the training program.
Training objectives are of great significance from a number of stakeholder
perspectives,

1. Trainer
2. Trainee
3. Designer

27
4. Evaluator

Trainer – The training objective is also beneficial to trainer because it helps the
trainer to measure the progress of trainees and make the required adjustments.
Also, trainer comes in a position to establish a relationship between objectives
and particular segments of training.

Designer

Trainer Beneficiaries Trainee

of
Training
Objectives

Evaluator

Trainee – The training objective is beneficial to the trainee because it

helps in reducing the anxiety of the trainee up to some extent. Not knowing
anything or going to a place which is unknown creates anxiety that can

28
negatively affect learning. Therefore, it is important to keep the participants
aware of the happenings, rather than keeping it surprise.
Secondly, it helps in increase in concentration, which is the crucial factor
to make the training successful. The objectives create an image of the training
program in trainee’s mind that actually helps in gaining attention. Thirdly, if the
goal is set to be challenging and motivating, then the likelihood of achieving
those goals is much higher than the situation in which no goal is set. Therefore,
training objectives helps in increasing the probability that the participants will be
successful in training.

Designer – The training objective is beneficial to the training designer

because if the designer is aware what is to be achieved in the end then he’ll buy
the training package according to that only. The training designer would then
look for the training methods, training equipments, and training content
accordingly to achieve those objectives. Furthermore, planning always helps in
dealing effectively in an unexpected situation. Consider an example; the
objective of one training program is to deal effectively with customers to
increase the sales. Since the objective is known, the designer will design a
training program that will include ways to improve the interpersonal skills, such
as verbal and non verbal language, dealing in unexpected situation i.e. when
there is a defect in a product or when a customer is angry.
Therefore, without any guidance, the training may not be designed
appropriately.

Evaluator – It becomes easy for the training evaluator to measure the

progress of the trainees because the objectives define the expected performance
of trainees. Training objective is an important to tool to judge the performance of
participants.

29
Types of Training:

Basically there are two types of training

1. On the Job Training (OJT)

2. Off the Job Training

ON THE JOB TRAINING:

Managers have two powerful ways of improving the performance and

productivity of their subordinates, which are counseling and on the job training.

Counseling is the process of helping a subordinate define and resolve personal

problems that effect performance or in order to develop a good attitude to work.

On the job training is the process of explaining, demonstrating and the structured
supervision of specific skills or particular tasks. It is similar to the teaching
process. On the job training is often referred to as OJT.

These are highly effective in three situations, which are:

1. Resolving people problems

All managers are faced with problem people from time to

time. Counseling and training are always the first
considerations in these cases but they do not always result in
success and sometimes more radical action is required. This is
covered in the Problem People and Positive Discipline
modules.

2. Maintaining group standards

30
 The management of people both as individuals and groups is a
dynamic process as nothing remains static ? problems are
always arising. A good manager must be aware of this and be
constantly ready to use counseling and training to maintain
standards.

3. To achieve continuous improvement

The best way to avoid problems is to keep ahead of them by

being proactive. You must have a plan for each individual in
your group and for the group as a whole. In particular new
and inexperienced group members need special treatment so
that they can meet required levels of performance.

Counseling and training share many of the same skills and in

many cases they are used together to achieve your results.

The following are typical signs of change to look for then you
must decide to initiate the counseling or training (or both)
initiatives.
TYPICAL SIGNS OF NEED FOR HELP

Avoids difficult work

No co-operation
Lack of interest
No initiative
Complaining
Making mistakes
Avoiding contact
No communication
Depressed
Poor quality

31
Argumentative
Unsafe working
Poor productivity
Delegating to others
Laziness
Absenteeism
Irritability
Blaming others

The most important sign to look for is a change in behavior or performance. For
example, if an employee who has always been well behaved, with a pleasant
disposition suddenly becomes aggressive you can bet on him having some
problem that needs counseling.

Counseling

On-the-job counseling is a process of talking about things that affect the

performance of the work. It involves sitting down in some quiet place and
getting job problems out in the open without hurting each other.

It's all about talking, listening, and trying to understand the other person's point
of view. All supervisors are counselors whether they realize it or not. Sometimes
a long heart-to-heart talk is needed to clear the air or a quick exchange will clear
up a misunderstanding. Perhaps the supervisor does most of the talking; the next
time it may be the other way around. However, counseling is more than a casual
discussion resulting from an accidental encounter.

Counseling is a very effective management tool to increase productivity by

solving problems and strengthening or repairing working relationships. Other
kinds of problems of a personal or psychological nature should be avoided and
left to professionals in that field.

32
On the Job training
Training is almost a natural human instinct. We all train our children without
even thinking about it but when we have the job of training someone at work we
find problems.

On the job training is often a one to one situation, usually involving the
supervisor and one of the group. The supervisor uses the actual work as the
training location, and works with the trainee to improve skills or introduce new
tasks. This process is also referred to as coaching.

Advantages of on the job training

1. It is cost effective
2. It strengthens relationship within the group
3. Feedback and support is easy

nearly all the problems associated with on the job training are very simple to
overcome. Like so many other parts of our work they require us to take a more
systematic approach to the situation.

Most workers usually take pride in learning a new skill. The new skills gained
are to our mutual benefit as it's good for the worker to improve his future
employment value and for us to have new capability in our groups. In addition,
by making learning possible, you earn their respect and build enduring
relationships.

The supervisor is frequently the only person in the organization that teaches the
basic knowledge and the many key skills that the group needs to learn. On-the-
job training should never stop.

OFF THE JOB TRAINING:

33
Advantages :

If the course has been designed by staff member it can be delivered to fit in with
the employee's regime and workload, so it does not affect productivity.
Can work out extremely cost effective as no hotel fees, trainer fees or extra
equipment are incurred, all is provided in-house and in works time.
Depending on the course, employees are ample to meet other employees perhaps
from other branches or departments they would not have normally met.
As employees are familiar with the trainer and the environment they are being
taught in, this would help them to feel more relaxed.
The person developing the course would be able to gauge the level of ability and
content for the course to be taught.
The course would be more relevant and adaptable to the needs of the company

Disadvantages:

Extra Audio or Visual aids to aid learning (whiteboard, Overhead projector,

projector, video etc) might not be available and so this would mean courses
might be basic or substandard.
As a member of staff may be delivering the course rather than an experienced
trainer, the employees might not take the course seriously and this might hamper
learning.
Employee rivalry and banter may mean that employees bypass the course and
undervalue its content as they think they know better or have better ways of
doing it.
Depending on the teaching skills of the employee training the members of staff,
they might not be able to gauge the existing abilities, knowledge, skill or need
for training, and so employees attending the course might already know what is
being taught already.
If the need for training has not accurately been gauged this would result in the
work space being wasted where it could have been utilized more productively.
If resources are limited, equipment available may be different than that used by

34
the employees and this would be counter productive.
Employees may feel devalued if they are sent on an internal training course to
improve skills rather than learn new ones and so courses have to be selected and
promoted to the employees very carefully and sensitively.

Needs of Training and to measure its effectiveness:

The identification of training needs is the first step in a uniform
method of instructional design.

1. Types of Needs Analyses

Many needs assessments are available for use in different

employment contexts. Sources that can help you determine which needs
analysis is appropriate for your situation are described below.
1. Context Analysis. An analysis of the business needs or
other reasons the training is desired. The important
questions being answered by this analysis are who decided
that training should be conducted, why a training program
is seen as the recommended solution to a business
problem, what the history of the organization has been
with regard to employee training and other management
interventions.

2. User Analysis. Analysis dealing with potential

participants and instructors involved in the process. The
important questions being answered by this analysis are
who will receive the training and their level of existing
knowledge on the subject, what is their learning style, and
who will conduct the training.

35
3. Work analysis. Analysis of the tasks being performed.
This is an analysis of the job and the requirements for
performing the work. Also known as a task analysis or job
analysis, this analysis seeks to specify the main duties and
skill level required. This helps ensure that the training
which is developed will include relevant links to the
content of the job.

4. Content Analysis. Analysis of documents, laws,

procedures used on the job. This analysis answers
questions about what knowledge or information is used on
this job. This information comes from manuals,
documents, or regulations. It is important that the content
of the training does not conflict or contradict job
requirements. An experienced worker can assist (as a
subject matter expert) in determining the appropriate
content.

5. Training Suitability Analysis. Analysis of whether

training is the desired solution. Training is one of several
solutions to employment problems. However, it may not
always be the best solution. It is important to determine if
training will be effective in its usage.

6. Cost-Benefit Analysis. Analysis of the return on

investment (ROI) of training. Effective training results in a
return of value to the organization that is greater than the
initial investment to produce or administer the training.

36
2. Techniques

Several basic Needs Assessment techniques include:

• Direct Observation
• Questionnaires
• Consultation with persons in key positions, and/or with specific
knowledge
• Review of Relevant Literature
• Interviews
• Focus Groups
• Tests
• Records & Report studies
• Work Samples

3. Checklist for Training Needs Analysis

It is helpful to have an organized method for choosing the right test

for your needs. A checklist can help you in this process. Your checklist
should summarize the kinds of information discussed above. For example, is
the test valid for your intended purpose? Is it reliable and fair? Is it cost-
effective? Is the instrument likely to be viewed as fair and valid by the test
takers? Also consider the ease or difficulty of administration, scoring, and
interpretation given available resources. A sample checklist that you may
find useful appears on the following page. Completing a checklist for each
test you are considering will assist you in comparing them more easily.

Training Evaluation:

37
 The process of examining a training program is called training
evaluation. Training evaluation checks whether training has had the desired
effect. Training evaluation ensures that whether candidates are able to implement
their learning in their respective workplaces, or to the regular work routines.

Purposes of Training Evaluation:

The five main purposes of training evaluation are:

Feedback: It helps in giving feedback to the candidates by defining the

objectives and linking it to learning outcomes.

Research: It helps in ascertaining the relationship between acquired

knowledge, transfer of knowledge at the work place, and training.

Control: It helps in controlling the training program because if the

training is not effective, then it can be dealt with accordingly.

Power games: At times, the top management (higher authoritative

employee) uses the evaluative data to manipulate it for their own benefits.

Intervention: It helps in determining that whether the actual outcomes

are aligned with the expected outcomes.

Process of Training Evaluation

Before Training: The learner’s skills and knowledge are assessed before the
training program. During the start of training, candidates generally perceive it as
a waste of resources because at most of the times candidates are unaware of the
objectives and learning outcomes of the program. Once aware, they are asked to
give their opinions on the methods used and whether those methods confirm to
the candidates preferences and learning style.

38
During Training: It is the phase at which instruction is started. This phase
usually consist of short tests at regular intervals

After Training: It is the phase when learner’s skills and knowledge are assessed
again to measure the effectiveness of the training. This phase is designed to
determine whether training has had the desired effect at individual department
and organizational levels.
training has had the desired effect at individual department and organizational
levels. There are various evaluation techniques for this phase.

Techniques of Evaluation

The various methods of training evaluation are:

• Observation.
• Questionnaire.
• Interview.
• Self diaries.
• Self recording of specific incidents.

Methods of Training:

There are various methods of training, which can be divided in to

cognitive and behavioral methods. Trainers need to understand the pros and cons
of each method, also its impact on trainees keeping their background and skills
in mind before giving training.

Cognitive methods are more of giving theoretical training to the trainees.

The various methods under Cognitive approach provide the rules for how to do
something, written or verbal information, demonstrate relationships among
concepts, etc. These methods are associated with changes in knowledge and
attitude by stimulating learning.

The various methods that come under Cognitive approach are:

• LECTURES

39
 • DEMONSTRATIONS
• DISCUSSIONS
• COMPUTER BASED TRAINING (CBT)
• INTELLEGENT TUTORIAL SYSTEM(ITS)
• PROGRAMMED INSTRUCTION (PI)
• VIRTUAL REALITY

Behavioral methods are more of giving practical training to the trainees.

The various methods under Behavioral approach allow the trainee to behavior in
a real fashion. These methods are best used for skill development.

The various methods that come under Behavioral approach are:

• GAMES AND SIMULATIONS
• BEHAVIOR-MODELING
• BUSINESS GAMES
• CASE STUDIES
• EQUIPMENT STIMULATORS
• IN-BASKET TECHNIQUE
• ROLE PLAYS

Both the methods can be used effectively to change attitudes, but through
different means.

Another Method is MANAGEMENT DEVELOPMENT METHOD –

MANAGEMENT DEVELOPMENT –

The more future oriented method and more concerned with education of
the employees. To become a better performer by education implies that
management development activities attempt to instill sound reasoning processes.

Management development method is further divided into two parts:

40
ON THE JOB TRAINING –

The development of a manager’s abilities can take place on the job. The
four techniques for on-the job development are:
• COACHING
• MENTORING
• JOB ROTATION
• JOB INSTRUCTION TECHNIQUE (JIT)

OFF THE JOB TRAINING –

There are many management development techniques that an employee

can take in off the job. The few popular methods are:

• SENSITIVITY TRAINING
• TRANSACTIONAL ANALYSIS
• STRAIGHT LECTURES/ LECTURES
• SIMULATION EXERCISES

Suggestions to Improve Training:

Before the Training Programme:

• Explain to the employee why they were selected for the training programme
and discuss the anticipated benefits for your department or division. This
'preview' helps the employee focus on what is expected of them after the training
programme finishes.
• Ask the employee to describe the benefits they expect to receive from the
programme. Having the employee focus on their personal expectations prior to
the start of training can increase the learning potential of any programme.
• Explain to the staff what is expected from them in terms of punctuality,
attendance and participation in the training programme.

41
 • If more than one employee is being sent to a training programme, introduce
them to each other so they feel comfortable with their fellow participants.
• Ensure the employee understand how the training programme will benefit
both their current job performance while improving their advancement potential.

During the Training Programme:

• For extended training programmes, have the participants brief their

managers as the course progresses. This can be done via telephone or fax when
face-to-face meetings are impossible. These briefings 'force' the participant to
evaluate the material on a daily basis, thereby enhancing their learning outcome.

• Managers should discuss any problems or uncertainties that arise in order to

help participants identify examples of how the material can be applied on
the job.

• If the participants are required to complete an interim assignment the

manager should get personnel that are not attending the course involved. This
will maximize the amount of individuals who benefit from the course.

After the Training Programme:

• Meet with course participants to review (1) what they learned, (2) how will
they use the new knowledge in their day-to-day work, (3) suggestions they have
for improving the course, and (4) who else should attend the course.

• Ask the employees for suggested company improvements based on the

material they learned during the training programme. Managers must be willing
to implement these suggestions on a trial basis and ensure the employee is
involved with the implementation and evaluation process.

Remembering these simple tricks will improve your organization's training ROI

42
while making sure the performance of your workforce will continue to improve.
Finally, I want to emphasize again, these tricks are not designed only for the HR
staff -- improving the training process is everyone's business!

RESEARCH METHODOLOGY

Research methodology is the method or the entire procedure involved in carrying

out a research for a specific purpose. Research is a way to systematically solve
the research problem.

In it we study the various steps that are generally adopted by a research to know
not only the research methods or techniques and they need to know the criteria
by which they can decide technique and procedure will be applicable to certain
problems and other will not. Research is thus an original contribution to the
existing stock of knowledge making for its advancement. Te purpose of research
is to discover answer to questions application of scientific procedures.

• Research always starts with a question or a problem.

• Its purpose is to find answers to questions through the

application of the scientific method.

• It is a systematic and intensive study towards study a more

complete knowledge of the studied.

As marketing does not address itself to basic or fundamental questions, it does

not qualify. On the contrary, it tackles problems, which seem to have immediate
commercial potential. In the view of the major consideration, marketing research
should be regarded as applied research. We may also say that marketing research
is of both types problem solving oriented.

43
TYPES OF RESEARCH

The approach followed in his type of research, the researcher has to contact the
person directly to know about the available information and analyze these to
make a critical evaluation. The facts and information required to analyze the data
was available in the interviewer’s statements.

It is called descriptive as it in the present. The researcher has no control over the
variable. He can report what has happened or what is happening.

DATA COLLECTION

PRIMARY DATA:
Primary data are data freshly gathered for specific purpose or for a specific
research project.

When the needed do not exist or are dated, inaccurate, incomplete, unreliable,
the researcher will have to collect primary data. The normal procedure is to
interview some people individually or in groups, to get a sense of how people
feel about the topic in question and develop a formal research instrument into
field. It is also called as the first hand data.

SECONDARY DATA:

44
It refers to data that is collected from some other sources, probably for similar
purpose already exists somewhere.

The research assignment under was aimed at gathering some vital information
Alliance for Debit Card Customer used by kotak Mahindra bank in attracting the
customer and the reasons for enormous success.

Among all the available ways, survey was the most feasible option to carry in the
cores of carrying out the research as it was more economical and keeping the
limited time in hand it thus proved to be the best option.

Survey was the best option as:

• It provides larger and fast coverage

• Low cost is involved
• Direct interface with people
• The analysis can be done on the basis of structured
questionnaire
• Data is easier to compile and categorize

RESEARCH INSTRUMENTS
A structured questionnaire was used as tool for data collection. To capture the
consumer, preferences, questionnaire having two type of question were used
areas follows:
 Close ended question
 Open ended question

The questionnaire covers aspects like:

 Kotak Mahindra bank popularity among the customer
 The impact of scheme like tie up with the shop keeper or big organization

45
  The prospective and potential customer of the kotak Mahindra bank
 Exiting banker’s and main banker’s and the facilities of the current
banker
 Earn interest on your current account
 Exiting banker’s offer dedicated relationship manager to service the a/c

SAMPLE TECHNIQUE
It is all about a study of relationships existing between debit card customer and
kotak Mahindra bank. After taking the consideration of Patna city population it
was decided to use non probability sampling method to use.

SAMPLE SIZE
The larger the sample the more accurate the results would be but practically it is
not feasible to survey the entire target population customers or even substantial
portion of it. In this project the sample size is 100. In this project being aware of
the time and cost constraints sample size was limited.

SAMPLE ELEMENT
(To whom this survey concern) To know the promotional strategy and its impact
on customers

Sample frame
The research consists of list of items from which sample is to be drawn. In this
case sample is to premises of kotak Mahindra bank in exhibition road in Patna
region.

Sample design

46
It is definite plan for obtaining a sample frame. It refers to technique or
procedure the researcher would adopt in selecting some sampling units from
which references about the population are drawn. It is a definite plan determined
before data are actually collected for obtaining a sample from a given customer
population.

Sample method
End consumers: Random sampling

In this research
• The information is based on primary data.
• The quantitative measures have been used.
• The tools used were observation personal interview and questionnaire.

Data collection and analysis

All the analysis and findings of the project is based on the data which has been
collected from the survey of the market. The analysis of data requires a number
of closely related operations into raw data through tabulation chart and then
draws inferences. Analysis of work is generally based on computation of various
percentages.

Preparation of report

After analysis is the next step is in the preparation of report has been prepared
according to the report writing principals.

The objective, clarity in presentation of ideas and the use of charts have been
maintained throughout the report. Once the data has been collected the

47
researcher has to process analysis and interpret the same. Sufficient attention is
often not given to these aspects with the result that the quality of report suffers.

Tabulation
It comprise of sorting of data into different categories and counting the number
of cases that belongs to each categories.

Analysis and interpretation

These are central steps in the research process. The goal of this analysis is to
summarize the collected data in such a way that they provide answers to the
question that triggered the research.

Hence the questionnaire prepared was then done to bring the meaning an
implication study.

All result is interpreted from raw data which was collected through survey, while
results have been filtered from the interview of the bank and customers through
questionnaires.

For convince and easy interpretation all the data has been presented in graphical
method.

48
 BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector Private sector Foreign Banks Regional Rural

Banks Banks in India Bank

(28) (27) (29) (102)

• Nationalized • Old Private
Bank Banks
• Other Public • New Private

49
 Sector Banks Banks
(IDBI)
• SBI and its
Associates

(B) Scheduled Cooperative Banks

Scheduled Urban Cooperative Scheduled State Cooperative

Banks (55) Banks (31)

Here we more concerned about private sector banks and competition among them.
Today, there are 27 private sector banks in the banking sector: 19 old private sector
banks and 8 new private sector banks. These new banks have brought in state-
of-the-art technology and Aggressively marketed their products. The Public
sector banks are facing a stiff competition from the new private sector banks. The
banks which have been setup in the 1990s under the guidelines of the Narasimham
Committee are referred to as NEW PRIVATE SECTOR BANKS.

New Private Sector Banks

• Superior Financial Services

• Designed Innovative Products
• Tapped new markets
• Accessed Low cost NRI funds
• Greater efficiency

50
 INDIAN BANKING INDUSTRIES

The Indian banking market is growing at an astonishing rate, with assets

expected to reach US$1 trillion by 2010. An expanding economy, middle
class, and technological innovations are all contributing to this growth.

The country’s middle class accounts for over 320 million people. In
correlation with the growth of the economy, rising income levels, increased
standard of living, and affordability of banking products are promising factors
for continued expansion.

51
 The Indian banking Industry is in the middle of an IT revolution,
Focusing on the expansion of retail and rural banking. Players are
becoming increasingly customer - centric in their approach, which has
resulted in innovative methods of offering new banking products and services.

Banks are now realizing the importance of being a big player and
are beginning to focus their attention on mergers and acquisitions to take
advantage of economies of scale and/or comply with Basel II
regulation.“Indian banking industry assets are expected to reach US$1 trillion by
2010 and are poised to receive a greater infusion of foreign capital,” says
Prathima Rajan, analyst in Celent's banking group and author of the report.
“The banking industry should focus on having a small number of large players
that can compete globally rather than havinga large number of fragmented
players."

UPCOMING FOREIGN BANKS IN INDIA

By 2009 few more names is going to be added in the list of foreign

banks in India. This is as an aftermath of the sudden interest shown by

52
Reserve Bank of India paving roadmap for foreign banks in India greater
freedom in India. Among them is the world's best private bank by EuroMoney
magazine, Switzerland's UBS.

The following are the list of foreign banks going to set up business in India:-

• Switzerland's UBS
• US-based GE Capital
• Credit Suisse Group
• Industrial and Commercial Bank of China

SWOT ANALYSIS

1. Strengths:
Capital Markets Franchise: Early focus and investment in its retail broking
franchise has enabled KMB to maintain a top three position for five years. Its
institutional broking business has been resilient to the loss of Goldman Sachs as
a JV partner.

53
Professional Management: Apart from possessing a strong talent pool across
all businesses, Kotak has shown remarkable stability in its top management over
many years.

Strong Technology: The relatively younger branch network gives it the

advantage of using more modern technology.

Well Capitalized: KMB is well capitalized, both at the parent bank level and in
the subsidiaries. This provides an excellent platform for growth.

2. Weakness:
Wholesale Funding Costs: Kotak’s dependence on subsidiaries as well as its
relatively young branch network mean that it is dependent on wholesale funding,
which tends to be unstable when rates are volatile.

Latecomers: Because of its late entry in 2003, its rollout of a branch network
has come later than other private sector banks. As a result, it is at the wrong end
of real estate and wage inflation.

3. Opportunities:
Low loan and retail penetration: Retail credit in India provides significant
potential for growth given its under-penetration. The country’s consumer loan-to
GDP ratio is 8% and its mortgage/GDP ratio is at 4%.

Stressed Asset Business: As a consequence of significant legal changes a few

years ago, the stressed asset market is growing in size as recoveries are now
possible. Kotak has a strong presence in this business.

4. Threats:
Capital Market slow-down: A significant slowdown in capital markets growth
could start to affect earnings due to significant capital markets dependent
revenue streams.

54
Competition: Private sector banks will continue to pose the largest threat to
KMB’s market share. The possible entry foreign banks post FY3/09 could
further add to this competitive pressure.

Rising Rates: Rising interest rates could affect loan growth and might lead to
higher NPLs.

DATA ANALYSIS &INTERPRETATION

Q1. Do you earn interest on your current account?

55
BASE OF CUSTOMER YES NO
100 85 15

Current Acount

90 85%
80
70
60
50
40 100

30
20 15%
10
0
yes no

Figure 1

Interpretation: I have tried to know the opinion of respondents that

does this bank provide interest on current account.

Q2. Would you consider switching over to kotak Mahindra bank if

you get interest on your CA?

56
BASE OF CUSTOMER YES NO
100 60 40

Switching Over

60%

60 40%
50

40

30

20

10

0
100
yes 60
no 40

Interpretation: I have tried to know that, which the potential

customers of kotak Mahindra bank are.

Q3. Whether home banking facility is available to you from your

bank?

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BASE OF YES NO
CUSTOMER
100 10 90

Home Banking Facility

90

90

80

70

60

50 %

100
40

30

20 10

10

0
YES NO

Interpretation: The response I gathered so that 80% of respondents

say that our bank does not provide home banking facility.

Q4. Are you interested in using home banking facility?

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BASE OF YES NO
CUSTOMER
100 75 25

INTRESTED

80

70

60

50

40
100
30

20

10

0
YES NO

Interpretation: The response which I gathered so that 75%

respondents are interested to using home banking facility without any
charges.

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Q5. Does the existing banker offer you a dedicated RM to service the
a/c?

BASE OF YES NO
CUSTOMER
100 15 85

RELATIONSHIP MANAGER

90

80

70

60

50

40 100

30

20

10

0
yes no

Interpretation: The response which I gathered show that 15%

respondents have dedicated relationship manager it means that
manager should provide all type of information which is beneficial
for the customers.

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Q6. Do you have any DD requirements for payments?

BASE OF YES(REGULARLY) YES NO

CUSTOMETR (RARELY)
100 35 55 10

DD REQUIREMENT

YES
(REGULARLU)
YES(RARELY)

NO

Interpretation: The response which I gathered 55% respondents say

that it rarely uses in service.

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Q7. Do you pay for outstation cheque collection?

BASE OF YES NO DON’T USE

CUSTOMER THE SERVICE
100 20 5 75

OUTSTATION CHEQUE
COLLLECTION

80
60
40
20 100
0
YES DON'T
USE THE
SERVICES

Interpretation: The responses which I gathered show that 75%

respondents say that don’t use this service because ATM’s are
available.

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Q8. Do you require CC/OD facility?

Base of customer Yes No

100 75 25

CC/OD FACILITY

80

70

60

50

40
100
30

20

10

0
yes no

Interpretation: The response which I gathered that 75% respondents

say that cash credit or over draft facility required. Especially business
man said.

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Q9. Are you looking forward for any other benefits?

BASE OF YES NO
CUSTOMER
100 75 25

BENEFITS

YES
NO

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Interpretation: The response which I gathered that 75% respondents
say that yes it required like ECG machine, home banking facility,
CC/OD facility.

Q10. Would you consider switching over to kotak Mahindra bank if

you get
• Interest on CA
• Home banking facility
• Dedicated RM
• CC/OD facility

BASE OF YES NO
CUSTOMER
100 88 12

FACILITY

YES
NO

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Interpretation: The response which I gathered that 88% respondents
are interested to switch over to kotak Mahindra bank because bank
provides special facility to the customers.

CONCLUSIONS

I enjoyed my summer training in Kotak Mahindra bank. As we know

that it is most crucial activity in the field of marketing &it is very difficult to
read the psychology of the people but still I enjoyed a lot &learnt so much from
them.

The project gave me immense opportunity to give myself exposure and

ideas in the field of marketing. Overall we conducted that most of the people get
themselves insured according to their need.

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 LIMITATIONS

Preparing this project was not an easy task. I had to suffer a lot of limitations.
• It was time consuming process and some respondents were busy. A
respondent has to give time to us from this busy time schedule.
• It was so much expensive because I used to travel different location in order
to interview the people.
• People did not to cooperate sometimes they reacted in negative manner
against this method of collect the information.

IN THESE TIE-UPS THERE ARE:

• Some of them are not ready to listen because they showed least interest in the
tie-up with the kotak Mahindra bank.
• The branded shops was not ready to give the 10% discount because they
already known by the market.
• During this survey some problems like short span of time made it difficult to
convince the retail shops customer.

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 RECOMMENDATIONS

• Kotak Mahindra bank. Bank had large share in Patna with knowledgeable
employees’ hard-working people there it easy for the bank to full in
crowed.

• To end up with, in short I would only like to draw the attention of are and
all to the central focal point i.e. which are operating in Patna. Kotak
Mahindra bank. Bank with respect to infrastructure, customer satisfaction
not work’s service; personal attention towards customers is bank to the
first in position. And it wants take time for the bank network as the
largest ape training today.

• More focus towards customer satisfaction.

• Customer complaint should be taken more seriously.

• Good public relation should be maintained.

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 BIBLIOGRAPHY

BOOKS:
1. Retail management By Berry Berman and Joel.R.Evans
2. Research methodology By .R.Kothari

Secondary Data:
1. Magazine
.Business world (August 11th 2007)
.Indian Today (February 7th 2008)
. Business Today (January 2nd 2007)
. Pitch (March 15th 2007)
2. Newspaper

. Times of I ndia (June 6th 2007)

. Hindustan Times (December 15th 2007)

69
3. Internet
Www.kotak. Com

Annexure

1. Name of the bank you are banking with?

a. Private
b.Public
c. foreign

2. Does your bank provide relationship manager?

a. Yes
b. No

3. Does your bank provide advisory services?

a. Yes
b.No

4. Does your bank provide financial planning for your family?

a.Yes
b.No

5. Does your bank provide cash pick up from home or office?

a.Yes

70
 b.No

6. what is your average turnover/month

a. Less than 2 laces b. 2-5 laces
c. 5-10 laces d. 10-15 laces

7. Who are your exiting bankers?

8. Who is main banker?

9. What are the facilities you are enjoying with the current bankers?

10. What is the minimum AQB that you have to keep in your CA with the exiting
bank?

11. What is the AQB that you generally maintain in your CA with your bank?

12. Do you earn interest on your CA?

A. Yes
B. No

12. Would you consider switching over to kotak Mahindra bank if you get
interest on your CA?
A. Yes
B. No

14. Whether home banking facility is available to you from your bank?
A. Yes
B. No

15. Are you interested in using home banking facility?

A. Yes
B. No

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 16. Does the existing banker offers you a dedicated (RM) relationship
manager to service the account?
A. Yes
B. No

17. Do you have any DD requirement for payments?

A. Yes (regularly)
B. Yes (rarely)
C. No

18. Do you pay for outstation cheque collection?

A. Yes
B. No
C. Don’t use the service
If yes,
Charges?

19. Do you require CC/OD facility?

A. Yes
B. No
Any other funding facility
20. What’s your average cash deposit per month?
A. less than 1 lacs B. 1-2 lacs
C. 2-4 lacs D. 4-6 lacs

21. Are you looking forward for any other benefits?

A. Yes
B. No
Others…………………………………………..

22. Would you consider switching over to kotak Mahindra bank if you get
A. interest on CA

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B. Home banking facility
C. Dedicated RM
D. CC/OD facility

73