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Customer Relationship Management in Indian Retail Banking PDF
Customer Relationship Management in Indian Retail Banking PDF
Customer Relationship Management in Indian Retail Banking PDF
DECLARATION
I hereby declare that the work incorporated in the present research
project entitled:
RETAIL BANKING
Place:
Date:
PUNEET AUDICHYA
MBA Semester-IV
CERTIFICATE
I feel great pleasure in certifying that the research project entitled
CUSTOMER RELATION SHIP MANAGEMENT IN INDIAN RETAIL BANKING
by PUNEET
under my guidance.
Place: Udaipur
Mrs. Anamica
Chopra
Date:
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mrs. Anamica Chopra,
Senior Lecturer, Marketing, for guiding me right from the inception till the
successful completion of the project. I sincerely acknowledge him/her/them for
extending their valuable guidance, support for literature, critical reviews of
project and the report and above all the moral support she/they had provided to
me with all stages of this project.
I would also like to thank the supporting staff of Maharaja College of
Management, for their help and cooperation throughout our project.
PUNEET
AUDICHYA
PREFACE
INDEX
S.NO. CONTENTS
PAGE
NO.
1-5
2.
6-26
3.
27-75
4.
76-78
79-89
6.
90-94
7.
95-97
8.
Conclusion.
98-100
9.
101-103
10.
Bibliography
104-105
11.
Annexure - Questionnaires
106-113
INTRODUCTION
OF INDUSTRY
WHAT IS BANKING?
However banks do not finance any speculative activity. Lending is risk taking;
having prudent norms for lending should cover the risk. The depositors of banks
are also assured of their money by deploying some percentage of deposits in
statutory reserve like SLR and CRR.
Country were nationalized & in 15th April 1980 six more commercial private
sector banks were also taken over by the Government.
Today the commercial banking system in India may be distinguished into:
PUBLIC SECTOR BANKS:
State Bank of India & its associate bank called the State Bank Group, 20
nationalized banks, Regional Rural Banks mainly sponsored by public sector
banks Old generation private bank, New generation private bank, foreign banks
in India, Scheduled co-operative bank, non-scheduled banks.
CO-OPERATIVE SECTOR BANKS:
The co-operative sector has been developed in the country to the supplement the
Village moneylender. The co-operative banking sector in India is divided into
four components State Co-operative Banks, Central Co-operative Banks,
Primary Agriculture Credit Societies, Land Development Banks, Urban Cooperative banks, Primary Agriculture Development Banks, Primary Land
Development Banks, and State Land Development Banks.
DEVELOPMENT BANKS:
Industrial Finance Corporation of India (IFCI)
Industrial Development Bank of India (IDBI)
Industrial Credit and Investment Corporation of India (ICICI)
Industrial Investment Bank of India (IIBI)
Small Industrial Development Bank of India (SIDBI)
National Bank for Agriculture and Rural Development (NABARD)
Export Import Bank of India (EXIM)
NATIONAL HOUSING BANK:
The Indian banking can be broadly categorized into Nationalized, Private Banks
& Specialized Banking Institution. The RBI Acts as a centralized body,
monitoring and discrepancies and short coming in the system. Since the
Nationalization of Banks in 1969, the public sector banks have accrued a place
of prominence and have since then seen tremendous progress. Conservative
banking practices allowed India Banks to be insulated partially form the Asia
currency crises, India banks are now quoting all higher valuation when
compared to Bank to other Asian countries that have major problems linked to
huge NPAs and payment defaults. Co-operative banks are nimble footed in
approach and armed with efficient branch network focus primarily on the high
revenue niche retail segments. The India banking was finally worked up to the
competitive dynamic of the new India market and is addressing the relevant
issues to take on the multifarious challenges of globalization.
Private Banks has been fast on the uptake and is reorienting their strategies
using the interest as a medium. The Internet has emerged as the new and
challenging frontier of marketing. The large dose of liberalization have largely
brought this transformation and economic reforms that allowed banks to explore
new business opportunities rather generating revenues from conventional
streams i.e. borrowing and lending. The banking in India is highly fragmented
with banking unit contributing to almost 55 of deposits and 60% of advances.
Indian nationalized banks continue to be the major lender in the economy due to
their sheer size and penetrative networks which assures them high deposit
mobilization. The India banking can be broadly categorized into nationalized,
private banks and specialized banking institutions. The RBI acts as a centralized
body monitoring any discrepancies and shortcoming in the system. It is foremost
monitoring body in the Indian financial sector. The nationalized banks continue
that out of commercial banks operating in India, banks are in the public sector
and 5 are in the private sector.
10
COMPANY PROFILE
11
12
HISTORY OF GROUP
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management
Finance Limited. Mr.Uday Kotak, Sidney A. A. Pinto and Kotak & Company
promoted this company. Industrialists Harish Mahindra and Anand Mahindra
took a stake in 1986, and that's when the company changed its name to Kotak
Mahindra Finance Limited.
Since then it's been a steady and confident journey to growth and success.
13
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 11th 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
1990
market.
3,08770 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). The Auto Finance
1991
Division is started
The Investment Banking Division is started.
Takes over FICOM, one of Indias largest financial retail marketing
networks.
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 Advisory Services Group received several mandates for
advice on mergers and acquisitions and re-structuring.
14
1993
15
directors,
their
relatives
etc.,
(ii)25000
shares
to
16
1996
18
1998
Enters the Mutual Fund market with the launch of Kotak Mahindra
Asset Management Company. 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.
1999
2000
Kotak Mahindra ties up with Old Mutual Plc. for the Life Insurance
business.
Kotak Securities launches kotakstreet.com - its on-line broking site.
Formal commencement of private equity activity through setting up of
Kotak Mahindra Venture Capital Fund. 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 crore.
19
22
23
2006
2007
2008
2009
CORPORATE IDENTITY
An idea in the highest sense of a word cannot be conveyed, but a symbol can
be:
25
The symbol of the Infinite Ka reflects our global Indian personality. The Ka is
uniquely while its curve forms the infinity sign, which is universal. One of the
basic tenets of economics is that mans needs are unlimited. The Infinite Ka
symbolizes that we have an infinite number of ways to meet those needs.
26
VISION STATEMENT
The global Indian financial services brand: our customers will enjoy
the benefits of dealing with a global Indian brand that best understand
their needs and delivers customized pragmatic solutions across multiple
platforms. We will be a world-class Indian financial services group. Our
technology and best practices will be benchmarked along international
lines while our understanding of customers will be uniquely Indian. We
will be more than a repository of our customers savings. We, the group,
will be a single window to every financial service in costumers universe.
The most preferred employer in financial services: A culture of
driver
27
Kotak
Mahindra
Capital Ltd
Kotak
Securitie
s
Ltd
Kotak
Mahindra
Prime Ltd
Key Group
Businesses
Kotak Old
Mutual
Life
Insurance
Kotak
Mahindra
Bank Ltd
Kotak
Mahindra
AMC Ltd.
28
29
30
Kotak Mahindra Bank is the flagship company of the group. The company
was incorporated in 1985 and over the years has spread its business into the
entire spectrum of financial services, either directly or through subsidiaries
Creating banking history
Established in 1984, The Kotak Mahindra group has long been one of India's
most reputed financial organizations. 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 creates
banking history since Kotak Mahindra Finance Ltd. is the first Finance company
in
India
to
be
converted
to
bank.
31
32
Home Finance
INTRODUCTION TO
Customer Relationship
Management in Indian Retail
Banking
33
34
36
Why is it necessary?
Many companies are turning to customer relationship management systems to
better understand customer wants and needs.
CRM applications often used in combination with data warehousing ecommerce application and call-center, which allows companies to assess
information about customers buying history, preferences, complaints and other
data so they can better anticipate what customer will want. The goal is to instill
greater customer loyalty.
Other benefits include:
The ability to provide faster response to customer inquiries.
Increase efficiency through automation.
Having a deeper knowledge of customers.
Getting more marketing of cross selling opportunities.
Identifying the most profitable customers.
Receiving the customer feedback that leads to new and improved product
and services.
Doing One to One marketing.
WHY NOW?
What makes CRM appropriate for todays environment? While there are many
number of environmental factors and business advancement that impact and
enable the real importance for CRM in todays environment is competitive and
differentiation. CRM promises to be competitive and differentiation in todays
environment.
37
38
Implementing CRM
If CRM involves optimizing product, price, place of distribution, promotion,
sales and service, why are so many companies struggling? Hasnt anyone really
mastered the art and science of CRM, and if not, why is it so difficult?
CRM is difficult because it is an enterprise-wide initiative.
CRM is not a technology initiative. Many have confused CRM as a
technology initiative, and assigned the CRM implementation project to
their I.S or I.T group. CRM conferences often equates to technology
exhibits and demonstration. Technology is needed in order to implement
CRM, particularly the customization part but technology is not the driver
of CRM, or the solution to successful CRM implementation
CRM is not exclusively a sales initiative. Similar to marketing, CRM is
often lodged within the sales department. The sales force, after all, is
extremely close to their customers, understanding their needs and wants, and
trying to fulfill them. Sales, however, is just one functional area that can
benefit from CRM, and that is necessary for effective CRM.
CRM is not exclusively a marketing initiative. Many organizations have
merely equated CRM with customer-focused marketing, or datadriven/database marketing. CRM requires marketing expertise. But CRM
is not strictly a marketing initiative.
CRM is not exclusively a service initiative. As with sales and marketing,
customer service is one functional aspect of successful CRM
implementation. But customer service is not the sole driver of the
process.
39
40
There are sobering statistics that over one-half of CRM implementations fail,
primarily due to lack of consensus on agreed upon and more importantly,
measurable goals. While objectives can address specific points of poor
performance-for examples low sales performance or customer satisfaction
scores-it is important that they also address supporting the entire customer life
cycle.
CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING
Banks Become Customer-Centric
The post-liberalized banking sector in India has been witnessing spectacular
changes. The major reasons for the recent radical changes in banking industrys
portfolio are competition, consolidation, information technology and the need to
be customer-centric.
Banks could improve the profitability by adopting strategies like market
segmentation, innovation, price bundling and relationship. Technology has a
major role to play in retail banking, but its role is complementary to customer
service initiatives.
Due to increased financial market products like commercial paper and variety of
financial instruments, big corporate clientele of several commercial banks have
shifted their loyalty, and have been raising resources from the market directly
and commercial banks have become more retail customer-centric by offering
wide range of services. Banks have identified new customer segments like
students, workingwomen, and high rich net worthy individuals.
41
42
43
HNI CUSTOMERS
Suspects
Prospects
45
Mainly my work was to deal with HNI customers and to find out the interested
potential customers for opening the account in KMBL.I had convinced them to
build a new and healthy relationship by opening the account. Instead of covering
all the areas, I have decided to cover 2 important sectors:
Gem and Jewellery Industry
Builders Industry (Real Estate)
Local Businessmen
I have selected the first two sectors, as they are the booming sectors of market.
These two segments are my suspects. Suspects are those persons who
might buy the product and who will be ready to open the account in
KMBL. Then I have determined the most likely prospects from these
suspects through telecalling and explaining about the features of
account. /prospects are those persons who are interested in opening the
account. By opening the account and building relationship, they have
become the first-time customers. These three steps can be referred as
customer development Process, how you are creating the relationship
with customers.
46
Current Account
47
CURRENT ACCOUNT
Basically a current account is opened for artificially created entity. This
artificially created entity can be a firm, sole proprietorship, association,
partnership or anything else. No interest is paid on the current account. The bank
charges some nominal amount for the transaction that takes place.
Tools for opening of the Current accounts
Walk in: - There was a huge number of walk in customers in KMBL, we use to
open their current accounts
References: - References were being collected from the leads which we were
having and from other sources like Chartered Accountants, Relatives, Friends
etc.
Cold Calls: - This refers to the telephonic call, which we use to make; we use to
take appointment before approaching the person.
Hot calls: - This refers to the direct face-to-face calls, which we use to make
without taking any prior appointments.
Databases: - The various databases provided by the KMBL itself, which
includes directories, yellow pages, club directories, etc.
proposal, telling him the benefits, which the firm will be getting after
opening its account in HSBC bank.
Seeking permission of opening of account.
Meeting to the owner of the firm/company
48
49
Convenience Banking.
Everyone needs a well-equipped bank account to keep pace with the business
endeavors. Kotak Mahindra Bank offers the Kotak Edge Current Account,
armed with Kotak 2-Way Sweep and entire gamut of banking privileges,
providing the extra edge to get ahead. The feature rich Kotak Edge Current
Account is the ideal way to make money work harder.
ATTRACTIVE RETURNS:
Kotak Edge Current Account combines liquidity of a Current account with the
attractive returns of a Term Deposits through the unique Kotak 2-Way Sweep.
KOTAK ADVANTAGES
Experience the edge of business gains while banking through a host of
advantages offered by Kotak Edge Current Account.
Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any of the branch locations, just
by calling Phone Banking services. There is no limit to the number/value of
Demand Drafts drawn by the customer at these locations
50
51
CONVENIENCE BANKING
A host of convenience banking facilities allows the accountholder to access
account anytime, anywhere.
Global Debit Card
Access the account free of cost at 1000+ Kotak Mahindra Bank and HDFC Bank
ATMs by using the VISA Global Debit Card. The accountholder can also use
Debit Card at all VISA affiliated merchant establishments and ATMs
worldwide.
Phone Banking
Dial 24 hour Toll Free number 1800 116022 (North India) OR (Rest of India)
from anywhere and customer Care Officer will help instantly with all banking
requirements.
Net Banking
Just log on to www.kotak.com to access Net banking facility. Take advantage
of the Internet to bank from home, office or anywhere in the world at a time of
convenience.
52
At-Home Services
This service enables the accountholder to make Utility Bill payments like
electricity, telephone and mobile phone bills and also get document delivery and
pickup from the bank.
Mobile Banking
Use this service to access bank account anywhere, anytime. It is quick and easy,
available to the accountholder 24X7 and its absolutely free. The accountholder
dont have to pay any charge to avail this service. The account holder can use
Mobile Banking to check account balance, last 3 transactions details, issued
cheque status and request a cheque book. The customer can use Alerts Service to
get Alerts by SMS and/or email whenever the balance falls below the Average
Quarterly Balance or a Standing Instruction set by the account holder fails.
Eligibility Criteria
These current accounts are offered to Sole Proprietorships, Partnerships
and Private Limited Companies.
To be eligible
Edge Account customers need to maintain a minimum average quarterly balance
of Rs.25000. Non-maintenance of this balance invites a fee of Rs.750 per
quarter.
Documentation Criteria
Account Opening Requirements:
Completed Account Opening Form
Passport size photograph of every signatory duly signed
PAN card
53
54
Everyone needs a well-equipped bank account to keep pace with the business
endeavors. Kotak Mahindra Bank offers the Kotak Pro Current Account, armed
with Kotak 2-Way Sweep and entire gamut of banking privileges and user
friendly Convenience Banking facilities. The feature rich Kotak Pro Current
Account is the ideal way to make money work harder.
ATTRACTIVE RETURNS:
Kotak Pro Current Account combines liquidity of a Current account with the
attractive returns of a Term Deposits through the unique Kotak 2-Way Sweep.
BUSINESS ADVANTAGES
The host of features offered by Kotak Pro Current Account makes money to
work while offering Convenient Banking experience.
Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any of the branch locations, just
by calling Phone Banking services. There is no limit to the number/value of
Demand Drafts drawn by the customer at these locations. Whats more, the
customer can avail free DDs upto a pre-specified limit, at non-branch locations
too.
55
56
57
CONVENIENCE BANKING
A host of convenience banking facilities allows the accountholder to access
account anytime, anywhere.
Global Debit Card
Access the account free of cost at 1000+ Kotak Mahindra Bank and HDFC Bank
ATMs by using the VISA Global Debit Card. The accountholder can also use
Debit Card at all VISA affiliated merchant establishments and ATMs
worldwide.
Phone Banking
Dial 24 hour Toll Free number 1800 116022 (North India) OR (Rest of India)
from anywhere and customer Care Officer will help instantly with all banking
requirements.
Net Banking
Just log on www.kotak.com to access Net banking facility . Take advantage
of the Internet to bank from home, office or anywhere in the world at a time of
convenience.
Mobile Banking
Use this service to access bank account anywhere, anytime. It is quick and easy,
available to the accountholder 24X7 and its absolutely free. The accountholder
dont have to pay any charge to avail this service. The account holder can use
Mobile Banking to check account balance, last 3 transactions details, issued
cheque status and request a cheque book. The customer can use Alerts Service to
get Alerts by SMS and/or email whenever the balance falls below the Average
Quarterly Balance or a Standing Instruction set by the account holder fails or the
58
accountholder can even ask for account balance to be sent on a daily basis or
weekly basis.
Eligibility Criteria
These current accounts are offered to Sole Proprietorships, Partnerships
and Private Limited Companies.
To be eligible
Pro Account customers need to maintain a minimum average quarterly balance
of Rs.50000. Non-maintenance of this balance invites a fee of Rs.750 per
quarter.
Documentation Criteria
Account Opening Requirements:
Completed Account Opening Form
Passport size photograph of every signatory duly signed
PAN card
Address Proof document
Identity card
Additional documents required:
Partnerships: Partnership Deed
Limited Company: Memorandum and Articles, Board Resolution,
List of Directors
59
Convenience Banking.
ATTRACTIVE RETURNS:
Kotak Ace Current Account combines liquidity of a current account with the
attractive returns of a Term Deposits through the unique Kotak 2-Way Sweep.
KOTAK ADVANTAGES
Ace current Account comes with a host of advantages that are aimed at
providing superior banking experience.
Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any of the branch locations, just
by calling Phone Banking services. There is no limit to the number/value of
Demand Drafts drawn by the customer at these locations. Whats more, the
customer can avail free DDs up to a pre-specified limit, at non-branch locations
too.
60
61
ACE PRIVILAGES
Ace account has been designed with exclusive benefits that give an extra fillip to
banking.
Free Cheque Pick-up
The accountholder can avail the added benefit of a free cheque pick up service.
This service enables to have cheques and documents picked up from the
doorstep on a daily basis, helping the accountholder to devote more time and
energy to business
Free Demat Account
As an Ace Current Account customer, the accountholder can open a Demat
Account with Kotak bank free of charge. Even the annual charges towards the
Demat account are waived off.
Family Savings Account
Ace account allows extending the Kotak banking experience with 3 family
savings accounts. The family savings account comes with a host of benefits like
Kotak 2-Way Sweep, At-par Cheque facility and other attractive features.
Free Trading Account
Kotak Ace savings account customer can avail a free Trading account with
Kotak Securities, giving access to online trading through Kotaksecurities.com.
And with Payment Gateway facility, the accountholder can pay trading bills
online from bank account directly.
Free Investment Account
Avail a free investment account that provides a consolidated view of all the
investments. The Investment account statement gives a single window view of
Mutual Fund portfolio, listing the NAV of each scheme invested into, current
62
CONVENIENCE BANKING
A host of convenience banking facilities allows the accountholder to access
account anytime, anywhere.
Global Debit Card Free
Access the account free of cost at 1000+ Kotak Mahindra Bank and HDFC Bank
ATMs by using the VISA Global Debit Card. The accountholder can also use
Debit Card at all VISA affiliated merchant establishments and ATMs
worldwide.
63
Phone Banking
Dial 24 hour Toll Free number 1800 116022 (North India) OR (Rest of India)
from anywhere and customer Care Officer will help instantly with all banking
requirements.
Net Banking
Just log on www.kotak.com to access Net banking facility. Take advantage of
the Internet to bank from home, office or anywhere in the world at a time of
convenience.
At-Home Services
This service enables the accountholder to make Utility Bill payments like
electricity, telephone and mobile phone bills and also get document delivery and
pickup from the bank.
Mobile Banking
Use this service to access bank account anywhere, anytime. It is quick and easy,
available to the accountholder 24X7 and its absolutely free. The accountholder
dont have to pay any charge to avail this service. The account holder can use
Mobile Banking to check account balance, last 3 transactions details, issued
cheque status and request a cheque book. The customer can use Alerts Service to
get Alerts by SMS and/or email whenever the balance falls below the Average
Quarterly Balance or a Standing Instruction set by the account holder fails or the
accountholder can even ask for account balance to be sent on a daily basis or
weekly basis.
64
Eligibility Criteria
These current accounts are offered to Sole Proprietorships, Partnerships
and Private Limited Companies.
To be eligible
Ace Account customers need to maintain a minimum average quarterly balance
of Rs.250000. Non-maintenance of this balance invites a fee of Rs 750 per
quarter.
Documentation Criteria
Account Opening Requirements:
Completed Account Opening Form
Passport size photograph of every signatory duly signed
PAN card
Address Proof document
Identity card
Additional documents required:
Partnerships: Partnership Deed
Limited Company: Memorandum and Articles, Board Resolution,
List of Directors
65
Savings Account
66
ATTRACTIVE RETURNS:
Kotak Edge savings Account combines liquidity of a savings account with the
attractive returns of a Term Deposits through the unique Kotak 2-Way Sweep.
2-Way Sweep
2-Way Sweep ensures that the money never stops working by linking the
savings account to a term deposit.
Attractive Returns: Funds above a pre-set limit in the saving account are
automatically swept into a Term Deposit account in units of Rs 10,000
and invested for a period of 181 days, allowing the customer to earn
higher interest on the savings.
67
into the savings account in units of Rs 10000. And then too, it takes care
to transfer only the latest term deposits which ensure that the interest loss
is minimized. The remaining amount in the term deposit account
continues to earn higher interest at the original applicable rate. KMBL
levy no penalty for premature withdrawals from term deposits.
KOTAK ADVANTAGES
Experience the edge while banking through a host of advantages offered by
Kotak Edge Savings Account.
Free Home Banking
For free cash/demand draft delivery, dial phone banking service and enjoy time
saving banking experience from the comfort of home or office. The customer
can also use the facility for free cash/cheque pickup.
Free At par Cheques
Kotak Mahindra Banks At-par cheques are treated as local clearing cheques
across select locations in the country. The At-par cheque facility comes to the
customer free of charge. The customer can now save DD making charges while
enjoying the convenience of a cheque.
Free Cheque Collections
Outstation cheques, drawn on any of the branch locations, would be collected
free of charge for the account holder. Only a nominal charge is levied for nonbranch location.
68
69
At-Home Services
This service enables the accountholder to make Utility Bill payments like
electricity, telephone and mobile phone bills and also get document delivery and
pickup from the bank.
Mobile Banking
Use this service to access bank account anywhere, anytime. It is quick and easy,
available to the accountholder 24X7 and its absolutely free. The accountholder
dont have to pay any charge to avail this service. The account holder can use
Mobile Banking to check account balance, last 3 transactions details, issued
cheque status and request a cheque book. The customer can use Alerts Service to
get Alerts by SMS and/or email whenever the balance falls below the Average
Quarterly Balance or a Standing Instruction set by the account holder fails.
70
71
Kotak Mahindra Banks At-par cheques are treated as local clearing cheques
across select locations in the country. The At-par cheque facility comes to the
customer free of charge. The customer can now save DD making charges while
enjoying the convenience of a cheque.
Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any of the branch locations, just
by calling Phone Banking services. There is no limit on the number/ value of
DDs drawn by the customers at these locations. Whats more, the customer can
avail free DDs up to a pre-specified limit, at non-branch locations too.
Free Cheque Collections
Outstation cheques, drawn on any of the branch locations, would be collected
free of charge for the account holder. Only a nominal charge is levied for nonbranch location.
Free Electronic Fund Transfer
Transfer funds to third party accounts in other banks, without drawing a
Demand Draft or a cheque, by using Electronic Transfer facility. With this
facility, the accountholder can save on Demand Draft making/couriering charges
and also transfer funds faster.
PRO PRIVILAGE
Kotak Pro Savings account comes with special privileges that provide an extra
fillip to banking experience.
Family Savings Account
Kotak Pro Savings package entitles a Family Savings Account. This account
comes with a host of benefits like Kotak 2-Way Sweep, At-par cheque facility
and other beneficial features. So now, even dear ones of the accountholder can
enjoy the banking.
72
ATTRACTIVE RETURNS:
Kotak Ace savings Account combines liquidity of a savings account with the
attractive returns of a Term Deposits through the unique Kotak 2-Way Sweep.
KOTAK ADVANTAGES
Ace savings Account comes with a host of advantages that are aimed at
providing superior banking experience.
Free Home Banking
74
For free cash/demand draft delivery, dial phone banking service and enjoy time
saving banking experience from the comfort of home or office. The customer
can also use the facility for free cash/cheque pickup.
Free At par Cheques
Kotak Mahindra Banks At-par cheques are treated as local clearing cheques
across select locations in the country. The At-par cheque facility comes to the
customer free of charge. The customer can now save DD making charges while
enjoying the convenience of a cheque.
Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any of the branch locations, just
by calling Phone Banking services. There is no limit to the number/value of
Demand Drafts drawn by the customer at these locations. Whats more, the
customer can avail free DDs up to a pre-specified limit, at non-branch locations
too.
Free Cheque Collections
Outstation cheques, drawn on any of the branch locations, would be collected
free of charge for the account holder. Only a nominal charge is levied for nonbranch location.
Free Electronic Fund Transfer
Transfer funds to third party accounts in other banks, without drawing a
Demand Draft or a cheque, by using Electronic Transfer facility. With this
facility, the accountholder can save on Demand Draft making/couriering charges
and also transfer funds faster.
This service enables the accountholder to make Utility Bill payments like
electricity, telephone and mobile phone bills and also get document delivery and
pickup from the bank.
ACE PRIVILAGES
Ace account has been designed with exclusive benefits that give an extra fillip to
banking.
Free Demat Account
As an Ace Savings Account customer, the accountholder can open a Demat
Account with Kotak bank free of charge. Even the annual charges towards the
Demat account are waived off.
Family Savings Account
Ace account allows extending the Kotak banking experience with 3 family
savings accounts. The family savings account comes with a host of benefits like
Kotak 2-Way Sweep, At-par Cheque facility and other attractive features.
76
Phone Banking
Dial 24 hour Toll Free number 1800 116022 (North India) OR (Rest of India)
from anywhere and customer Care Officer will help instantly with all banking
requirements.
Net Banking
Just log on www.kotak.com to access Net banking facility. Take advantage of
the Internet to bank from home, office or anywhere in the world at a time of
convenience.
Mobile Banking
Use this service to access bank account anywhere, anytime. It is quick and easy,
available to the accountholder 24X7 and its absolutely free. The accountholder
dont have to pay any charge to avail this service. The account holder can use
Mobile Banking to check account balance, last 3 transactions details, issued
cheque status and request a cheque book. The customer can use Alerts Service to
get Alerts by SMS and/or email whenever the balance falls below the Average
Quarterly Balance or a Standing Instruction set by the account holder fails or the
accountholder can even ask for account balance to be sent on a daily basis or
weekly basis.
78
EDGE A/C
PRO A/C
ACE A/C
AQB
10000
20000
75000
Investment a/c
Free
Free
Free
Nil
1 a/c
3a/c
2-Way Sweep
Above 20k
Above40K
Above150k
Home Banking
Free
Free
Free
DD
Charged
Free up to Rs 5 lacs
Free up to Rs 30 lacs
Free
p.a
Free
Monthly
Cheque Collections
Statements
Quarterly
p.a
Free
Quarterly
Convenience
Free
Free
Free
Banking
At par Cheque Book
ATM cum Debit card
Free
Free for 1st yr
Free
Free for 1st yr.
Free
Free for life
25K
25K
75K
25K
25K
50K
Own/HDFC ATMs
Visa Domestic ATM
Free
Charged
Free
Free
Free
Free
Visa International
Charged
Charged
Free
ATM
EDGE A/C
PRO A/C
ACE A/C
AQB
10000
20000
75000
Investment a/c
Free
Free
Free
Nil
1 a/c
3a/c
2-Way Sweep
Above 20k
Above40K
Above150k
Home Banking
Free
Free
Free
DD
Charged
Free up to Rs5
Cheque Collections
Free
lacs p.a
Free
p.a
Free
Statements
Quarterly
Quarterly
Monthly
Convenience
Free
Free
Free
At par Cheque
Free
Free
Free
Book
ATM cum Debit
25K
25K
75K
25K
25K
50K
Own/HDFC ATMs
Free
Free
Free
Visa Domestic
Charged
Free
Free
Charged
Charged
Free
Banking
card
ATM
Visa International
ATM
Customer
Interested
Documents Sent
to Sales. Dept.
Deviations
Negative
Collection of further
required documents
File Rejected
81
RESEARCH
METHODOLOGY
82
Objective:
To understand the Indian Banking System.
To understand the retail trends followed by the modern retail Banks. To
Descriptive
Sample size
100 customers
Questionnaire:
The data was collected through questionnaire, in which different question were asked
Scope of study:
My study will help to understanding the Indian banking system as well as
to identify the existing bank Market reputation
83
.
Limitations of the study:
Due to time constraint, the research was confined to Udaipur only
Sample size is very small.
Some of the respondents shows biasness and gave wrong information.
84
85
SBBJ
30
PNB
15
CENTRAL BANK
12
BANK OF INDIA
IDBI
10
BANK OF RAJASTHAN
10
BANK OF BARODA
ICICI
10
HDFC
CENTURION BANK
SYNDICATE BANK
CITIBANK
UCO
UTI
OBC
86
45
SAVINGS ACCOUNT
40
35
30
25
20 30
15
10
10
PN
C
EN
TR
AL
SB
BJ
12
10
10
BA
N SB
K I
BO
I
ID
BI
BO
R
BO
B
IC
IC
I
H
D
FC
C
EN
TUS
RYN
IOD
NICC
AITT
IEB
AN
K
U
C
O
U
TI
O
BC
U
BI
15
Interpretation:
As it can be predicted from the graph, 30 organizations have their savings
account with SBBJ bank. Most of the consumers have their savings account in
nationalized bank as they found nationalized banks very safe and trustworthy.
The other major players are Punjab National Bank and Bank of Rajasthan.
87
60
9
20
10
24
0
Safety
others
Interpretation:
Most of the consumers have relationship with their existing bankers because
they have very long term and past relationship with their banks and they are
quite satisfied with their services. Another reason for relationship is safety.
Out of 100, 60 favored past relationship and 24 favored safety as their reason.
88
85 85
Facility used
25
ba
nk
in
g
Ba
nk
in
g
st
ep
Ph
on
e
an
ki
ng
22
H
om
In
te
rn
et
B
AT
M
39
36
e/
D
oo
r
35
Br
an
ch
40
Bank Provides
45
41
100
90
80
70
60
50
40
30
20
10
0
Interpretation:
Each is using Branch facility. The other facility used by them is Phone Banking
as they consider it safe.
89
100
87
90
80
70
60
50
Aware
40
30
20
10
Availed
31
18
8
20
17
0
0
Auto swep in FD At par cheques
Credit Cards
0
Investment
Advisory
Interpretation:
Only 18 consumers out of 100 are aware about Auto swep FD facility and 8 are
availing it. 31 are aware about At-par cheque book facility and 17 are availing it
as bank takes charges for this facility. 30 is availing Credit card and 11 is from
investment advisory services.
90
16
14
14
12
10
8
6
4
2
SB
BJ
IC
IC
I
HD
FC
BO
B
BO
R
SY
P
ND NB
IC
AT
E
OB
Ci C
t ib
an
k
Interpretation:
Consumers who receive foreign funds from outside the country have to register
themselves under Foreign Contribution Regulation Act, 1986 (FCRA). The
main purpose of this act is to curb the use of foreign funds. For instance NGOs
have to open a FCRA account in any bank to deposit that received foreign funds
so that government can know about the use of foreign funds.14 consumers have
FCRA account in SBBJ bank reason being safety and past relationship else the
rest dont have major hold on FCRA account.
91
Sources of Funds
30
27
25
20
18
15
Response in nos.
10
5
0
INDIA
ABROAD
Frequency
16
14
14
12
10
8
Resonse in nos.
5
3
0
Below 10
Lacs
11-30
Lacs
31-50
Lacs
51-70
Lacs
71 Lacs
and
Above
92
Form of Receipts
30
26
25
21
20
15
Response in nos.
10
5
0
Demand Draft
Cash
Cheque
Interpretation:
Though most of the organizations have registered themselves under FCRA
account
but majority of funds come from India only. Most of FCRA Registered
organizations in udaipur get funds from India only. But some of organizations
receive huge money from abroad like Consumer Unit Trust of India,
Rajasthan Cancer Society.
The average frequency of funds received by these organizations in Udaipur is
below 10 lacks and only 5 of such organizations get above Rs71 Lakhs.
Cheque is the major form in which these organizations received their fund either
from India or Abroad. Demand Draft is another form in which they receive funds.
93
100
80
80
60
38
Response in nos.
40
20
20
26
0
With in the
City
Abroad
Interpretation:
80 out of 100 organizations receive the funds from all over India and 38 received
from Abroad. A very few of them received only from Rajasthan or within city.
94
PAYMENT MODE
35
33
31
29 28
30
25
22
17
20
15
2
E
S
JE
FU
E
X
A
IS
IN
Y
R
A
LA
A
T
IV
E
M
IN
IS
T
R
CHEQUE
DRAFT
10
5
CASH
Interpretation:
As it can be predicted from above chart, cash is the major mode of payment
made by these firms whether it is Administrative, salary or project related
Draft is also a mode of payment used by these firm but is not used so much as
used only when to buy some machines or to make payment through draft only
The other form is cheque and the payment by cheque are mostly done for project
related expenses or salary. Administrative expenses are not carried by cheque
95
COMPARATIVE ANALYSIS OF
ACCOUNTS WITH COMPETATIVE
BANKS
96
COMPARATIVE ANALYSIS
Today is the world of competition. In this competitive scenario, each and every
company has to keep an eye on its competitor. To help this out, I have done
comparative analysis of different banks and their services keeping in mind of
Kotak Mahindra Bank Limited. I have done comparative analysis so that I can
be able to know about the competitors services. This will help me out to handle
the customer queries and make them understand how Kotak Bank is different
and better than other banks. This analysis will help to convince the customer
easily for creating and building a new and fair, healthy relationship with Kotak
Bank.
97
FEATURES
ICICI
HDFC
UTI
IDBI
HSBC
KOTAK
MIN AQB
5,000
5,000
5,000
50,000
25,000
20,000
2 WAY SWEEP
YES
NO
NO
YES
YES
YES
HOME
NO
NO
NO
YES
CHARGED
YES
FREE
YES
FREE
FREE
/ BANK
BANKING
DEMAND
CHARGED CHARGED
DRAFT
ECS
YES
YES
YES
YES
YES
YES
DEBIT CARD
ICICI
HDFC
UTI
IDBI
HSBC
VISA
DOMESTIC
PHONE
YES
YES
YES
YES
YES
YES
NET BANKING
YES
YES
YES
YES
YES
YES
MOBILE
YES
YES
YES
YES
YES
YES
BANKING
BANKING
TRADING A/C
NO
CHARGED
FREE
DEMAT A/C
YES
CHARGED
FREE
ICICI
HDFC
UTI
IDBI
HSBC
KOTAK
100000
100000
AMB-
10000
100000
250000
100000
/ BANK
MIN AQB
98
2 WAY SWEEP
HOME
NO
YES
NO
YES
YES
YES
LIMITED
NO
NO
YES
FREE
FREE
LIMITED
FREE
BANKING
DEMAND
DRAFT
UPTO Rs.
Rs.30
UPTO A 20 LAKH
Lakh
LIMIT
UPTO A UNLIMITED
LIMIT
(P.M)
FOR BRANCH
LOCATION
.FREE FOR
NON-BRANCH
LOCATION
UPTO Rs.30
DEBIT CARD
ICICI
HDFC
UTI
IDBI
HSBC
LAKHS.
ALL
VISA
DOMESTIC
AND
INTERNATION
AL ATMs
PHONE
FREE
FREE
FREE
YES
FREE
FREE
NET BANKING
FREE
FREE
FREE
YES
FREE
FREE
MOBILE
FREE
FREE
FREE
YES
FREE
FREE
NO
NO
NO
NO
NO
FREE
DEMAT A/C
FREE
FREE
YES
YES
NO
FREE
AT PAR
FREE
FIRST
UPTO
UPTO
FREE
UNLIMITED
FREE
Rs.75
Rs.5C
THEN
LAKH
r. P.M
CHARGED
(P.M)
free
BANKING
BANKING
TRADING A/C
CHEQUE BOOK
FREE
99
SWOT
ANALYSIS
100
Strengths:
Very fast growing bank of Rajasthan as well as of India.
Track record of high growth and profitability.
Strong financial background.
One of the biggest financial institutions before converting into bank.
Long experience of banking that is why it is called 25 years old new bank.
Weaknesses:
Low brand image.
High average quarterly balance to be maintained by the costumer.
Lack of coordination between different departments.
Lack of costumer awareness regarding services and bank because of low
advertising.
Opportunities:
Opportunities of entering into major cities of Rajasthan.
open both savings and current account at a very nominal amount with
somewhat similar services
102
CONCLUSION
103
CONCLUSION
Limitations of Retail Banking
The bank into retailing will have to face following bottlenecks in its operations
Huge sales and promotion expenditure
Managing human resources
Managing technology
Pressure on margins
Continuous follow-up
Attitude hurdles
Security problems
Huge Sales and Promotion Expenditure
In order to survive in the world of fierce competition with so many players, each
bank has to incur huge amount of funds on sales and promotion. No bank can
deny this expenditure because they need to build their image among the
customers, to get business.
Managing Human Resources
Retail banking caters to the need of individual customers. For this purpose
qualified and trained staff is needed to be maintained. For training those
employees, banks spend a huge amount of money. Sometimes these trained
personnel leave the job halfway which increases the expenditure of the bank.
Apart from this banks also have to maintain various cells regarding customer
grievance, employee grievance, etc. which again increases the expenditure of
the bank.
Managing Technology
Technology plays an important role in retail banking. Today majority of
transactions in banks are done through ATMs, Mobile banking, Phone banking,
Internet banking. For this purpose it is necessary effective and efficient
management of technology. Maintaining technology incurs huge expenditure,
which sometimes create problem for the banks to accumulate funds for these
purposes.
104
Pressures on Margin
To retain the existing customer base as well as to expand, the banks are
pressurized to keep the minimum prices possible. Thus the banks have huge
pressures on their margins.
Continuous Follow-up
In order to earn more profit banks are going for mass banking. But in this race
the maintenance of the customer base becomes very difficult. The problems like
NPAs and delay in payment of usage changes occur which leads to losses for
the banks. Thus the banks have to maintain continuous follow-up programs,
which require efficient technology, human resources as well as surplus funds to
control expenditure on such programs.
Attitude Hurdles
Earlier the major players in the banking industry were public sector banks. But
due to the advent of liberalization and globalization, private and foreign sectors
banks have come up which has resulted into a drastic change in the Indian
Banking scenario. With these banks the latest technology has also come up. But
still a huge chunk of people does not avail itself with the benefits. People still
prefer going to banks and carry out the regular paper work when then same
thing can be done very easily through their mobile phones and internet. Thus
people from rural areas should be given proper information and should be
educated and their attitude needs to be changed, since it is a major hurdle for the
growth of the retail banking products.
Security Problems
Retail banking products like net banking, phone and mobile banking and ATMs
are solely dependent on technology. If there is any problem in the network or a
system as a whole, it would result into huge losses for the banks as well as their
customers. Therefore proper security measures should be in place to secure
customers date and identification codes.
This study has helped me to know the whole functioning of one of the major
pillars of our economy which is Banks. With the Advent of Globalization and
Liberalization new ways to improve customer relationship have emerged in
front of the banks. These new ideas will help them in acquiring new customers
and maintaining the existing customer base. One of the new fast emerging tools
with banks to improve up on customer retention and satisfaction is Retail
Banking and by adopting this many banks have achieved growth in their
business like never before
105
Suggestions
&
Recommandations
106
awareness regarding its presence and various services of the bank. More
attention is required in distant located firms and caters the needs of those
commercial areas.
Personal Marketing / Aggressive Marketing: Today is the era of
Reference Selling:
Few of the Banks existing customers specially esteemed ones
can be asked to give references about relatives/ friends or any
acquaintance that they consider potential customer. Thus the
business volume can be increased.
107
One or two Neon boards can be put at the center places of Udaipur.
cities of Rajasthan
Executives by KMBL.
Introduction of HR practices
108
Bibliography
109
Bibliography
4. http://www.kotak.com
5. http://www.google.co.in
110
ANNEXURE
111
Questionnaire
Name: _______________________________________
Nature of Occupation
(a) Salaried [ ]
Government
(b) Self-Employed [
Semi-govt.
Private
Lawyer
Doctor
Engineer
Architect
Builder
Consultant
Exporter
Importer
Jeweler
112
Brand name
Near to home/office
Q5. Are you satisfied with the services provided by your bank?
Yes
No
(Free/ charged)
(Free/ charged)
113
Phone Banking
(Free/ charged)
(Free/ charged)
Demand Draft
(Free/ charged)
Auto Sweep FD
(Free/ charged)
24 hrs ATM
(Free/ charged)
Investment a/c
(Free/ charged)
Address:
______________________
______________________
______________________
______________________
114
Questionnaire
1) Name of the Organization:
2) Address:
________________________________________________________
_______________________________________________________________
_______________________________________________________________
3) Telephone Number
4) Name of Contact person:
5) About Organization:
______________________________________________
_______________________________________________________________
6) In which bank do you have an account and what is the nature of the
account?
_____________________________________________________________
7) What are the reasons you have relationship with these banks?
Safety
Past relationship
Proximity
others
8) Which of the following facilities does your bank provide you and which
one does
115
You use?
Facility
Provides
Use
Frequency
Branch Banking
Internet Banking
Phone Banking
Home Banking
ATM
Facility
Aware
Availed
Source
Response in numbers
116
INDIA
ABROAD
Form of receipt
Response in numbers
Demand Draft
Cash
Cheque
Other
Amount
Response in
numbers
Below 10 Lacks
1130 Lacks
3150 Lacks
5170 Lacks
71 Lacks and above
12) Could you specify the areas from which the majority of your funds come?
Within
City
Within
Rajasthan
All
Over India
abroad
117
13) What are the major payments you make and in what form they are made?
118