A

Project report

On

“A COMPARATIVE STUDY ON CUSTOMER RELATIONSHIP

MANAGEMENT OF STATE BANK OF INDIA AND KOTAK MAHINDRA
BANK”

In partial fulfillment of the requirements of

Master of Management Studies

Conducted by

University of Mumbai

Through

Rizvi Institute of Management Studies & Research

Under the guidance of

Mr. Subash Raje

Submitted by

Heena Siddiqui

MMS

Batch: 2017 – 2019.

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 CERTIFICATE

This is to certify that Miss Heena Siddiqui, a student of Rizvi Institute of

Management Studies and Research, of MMS III bearing Roll No.40 and specializing
in Finance has successfully completed the project titled

“A COMPARATIVE STUDY ON CUSTOMER RELATIONSHIP

MANAGEMENT OF STATE BANK OF INDIA AND KOTAK MAHINDRA
BANK”

Under the guidance of Prof. Subash Raje in partial fulfillment of the requirement of
Masters of Management Studies by University of Mumbai for the academic year 2017
– 2019.

________________
Prof. Subash Raje
Project Guide

________________ _______________
Prof. Umar Farooq Dr. Kalim Khan
Academic Coordinator Director

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 ACKNOWLEDGEMENT

I take this opportunity to thank the University of Mumbai for giving me a chance to
do this project. Firstly, I owe my deepest gratitude to my project guide Prof. Shubash
Raje for his guidance, care and moral support without which this project would have
really been a distant dream.

I thank the teaching and non-teaching staff of Rizvi Institute of Management Studies
and Research for providing encouragement and valuable inputs required for
completion and enrichment of this project.

I would like to thank each and every person who directly or indirectly helped me in
the completion of the project. This acknowledgement would surely be incomplete
without thanking my parents, who raised me, taught me and supported me throughout
the years. A special thanks to my mother who was instrumental in instilling the love
of food & cooking in me, which resulted in the topic of this project

To my parents I dedicate this dissertation project. Lastly, and most importantly, I

thank God for making all of this possible.

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 Executive Summary

CUSTOMER RELATIONSHIP MANAGMENT has become necessity in order for

bank to survive in the competitive environment vis-à-vis not only from the public
and private sector banks but also from the foreign banks. It is an important concept
for fast emerging in the world of banking.

Due the advancement in the technology and the competitive market Customer
Relationship Management is really much more a human function than a technology
implementation. And while banks need to constantly orient their employees and
vendors towards never losing focus of the customer, technology can be harnessed to
enable the human aspect to function more effectively are studied and interpreted in
light of banks performance.

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 TABLE OF CONTENTS
Chapter Name Page No
No
1 Introduction to Banking
1.1 Introduction

1.2 Banking system in India

1.3 History of Banking
1.4 Classification of Banking
2 Reserve Bank of India
2.1 Introduction of RBI
2.2 Role of RBI in Indian Banking System
3 Customer Relationship Management in Banking Sector

3.1 Introduction to CRM

3.2 Meaning of CRM
3.3 Objective of CRM in Banks
3.4 Need of CRM in Banks
3.5 Benefits of CRM in Banks
3.6 Implementation of CRM in Banking Sector
3.7 Challenges faced by banks for successful
implementation CRM
3.8 Methods of Effective CRM Implementation
4 Company Profile
4.1 Introduction to SBI
4.2 Product and Services offered by SBI
4.3 CRM Initiatives offered by SBI
4.4 Technology used by SBI
4.5 Introduction to Kotak Mahindra Bank
4.6 Product and Services offered by KMB
4.7 CRM Initiatives offered by KMB
4.8 Technology used by KMB
5 Comparative Analysis between SBI and KMB

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 CHAPTER 1: INTRODUCTION TO BANKING

Introduction
Definition of bank

Banking as “accepting for the purpose of lending or investment, of deposits of money

from the public, repayable on demand or otherwise and withdraw able on demand by
cheque, draft or order otherwise”

Banking Regulation Act, 1949

Banking System in India

Banking sector plays a major role for the economic growth of the country. Without a
sound and effective banking system in India it cannot have a healthy economy. The
banking system should not only be hassle free but it should able to meet new
challenges posed by the technology and any other external and internal factor. As per
the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and
well-regulated. The financial and economic conditions in the country are far superior
to any other country in the world. Credit, market and liquidity risk studies suggest that
Indian banks are generally resilient and have withstood the global downturn well.

Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI’s new measures may go a long
way in helping the restructuring of the domestic banking industry.

The digital payments system in India has evolved the most among 25 countries with
India’s Immediate Payment Service (IMPS) being the only system at level 5 in the
Faster Payments Innovation Index (FPII).

The Indian banking system consists of 27 public sector banks, 22 private sector banks,
44 foreign banks, 56 regional rural banks, 1,589 urban cooperative banks and 93,550
rural cooperative banks, in addition to cooperative credit institutions.

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 History of Banking in India

Banking in India has it origin as early or verdict period. During the mogul period the
indigenous banker played a very important role in lending money and financing
foreign trade and commerce.

During the days of east India Company it was the turn of agency house to carry on the
banking business. The general bank of India was the first joint stock bank established
in 1786 the other which was followed was the bank of Hindustan and Bengal bank.
The bank of Hindustan is reported to have continue till 1906 while other two failed in
mean time in the first half of the 19th century the east Indian company has established
there bank. The bank of Bengal in 1809, The Bank of Bombay in 1840 and the Bank
of madras in 1843.The three presidency banks were subsequently amalgamated into
the Imperial Bank of India (IBI) under the Imperial Bank of India Act, 1920 which is
now known as the State Bank of India. The Reserve Bank of India (RBI) which is a
central bank in April 1935.The central office or RBI is in Mumbai and its control all
the other banks in the country

In the wake of Swadeshi Movement number of banks with the Indian Management
were established in the country namely , Punjab National Bank Ltd. Bank of India Ltd
,bank of Baroda ltd , Canara bank.14 major bank of the country nationalize an on 15th
April 1980 ,6 more commercial private banks were taken over by the government

The first bank in India through conservative was established in till today, the journey
of Indian banking system can be segregated in to 3 distant phases these are mentioned
below

 Early phase from 1786 to 1969 of Indian bank

 Nationalization of Indian bank and up to 1991 prior to Indian banking sector

reform

 New phase of Indian banking system with the advent of Indian financial &
Banking sector reform after 1991

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Phase I

The general bank of India was setup in the year 1786.Next came bank was Hindustan
and Bengal bank. The east India Company established the Bank of Bengal (1809)
Bank of Bombay (1840) bank of madras (1843) as independent unit and called it
presidency bank.

These three bank were amalgamated in 1920 and Imperial bank of India was
established which started as private share holder bank, Mostly Europeans shareholder

During the first phase the growth was slow and the bank also experience periodic
failure between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activity of the commercial bank, the government of
India came up with the Banking companies Act 1949 which was later change to
Banking Regulation Act 1949 as per amending Act of 1965.Reseve Bank of India was
vested with the extensive power for the supervision of the banking in India as the
Central Banking Authority.

During those day’s public has lesser confidence in the bank. As an aftermath deposit
mobilization

Was slow .Abreast of it the saving bank facility provided by the postal department
was completely safer .Moreover the fund were largely given to traders

Phase II

Government took major steps in this Indian Banking Sector Reforms after the
independence. In 1955, it nationalized Imperial Bank of India with the extensive
banking facilities on a large scale especially in rural and semi-urban aeras.it formed
State Bank of India to act as a principal agent of RBI and to handle banking
transaction of the union and state government all over the country.

Seven banks forming subsidiary of the state bank of India was nationalized in 1960 on
19th July 1969, major process of nationalized was carried out .It was the effort of the
prime minister of India Mrs. Indira Gandhi that 14 major commercial bank in the
country were nationalized.

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Second phase of nationalization Indian Banking sector Reform was carried out in
1980 with seven more banks. This step bought 80% of the banking segment in India
under government ownership. The following step are taken by government of India to
regulate Banking institution in the country.
1949: Enactment of banking regulation act.

1955 Nationalization of State bank of India.

1959 Nationalization of SBI subsidiary.

1961 insurance cover extended to deposit.

1971 Nationalization of 14 major bank.

1971 Creation of credit guarantee corporation.

1975 creation of regional rural bank.

1980 nationalization with 7 bank with deposits over 200 crores.

After the nationalization of the bank, the branches of public sector bank in India rose
to 800% in deposits and advance took a huge jump by 11000% .Banking under the
government ownership gave the public implicit faith and immense confidence about
the sustainability of these institution

Phase III

The third phase of evolution of banking in India started in 1991.The reforms are
needed to increase the efficiency of financial resource mobilizations and generate
higher levels of growth. Secondly, financial sector reforms are utmost necessary for
the macro-economic stability. India saw its worst economic crisis in the decade of
1980s. In 1991, India embarked into an era of Economic Reforms which led to
liberalization, privatization and globalization of the Indian Economy. The financial
sector reforms were an integral part to these reforms. It was the first Narasimha
Committee that gave a blueprint of banking sector reforms. On the basis of these
recommendations, the government launched a comprehensive financial sector

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liberalization program which included interest rates liberalization, reduction of
reserved rations, reduced government control in banking operations and establishment
of a market regulatory framework. Another outcome of liberalization was the
dismantling of prohibitions against foreign direct investment.

Some more outcomes of reforms that impacted the banking sector were:-

Steps were taken to move to a market determined exchange rate system, and a unified
exchange rate was achieved in the 1990s itself. The government also released a slew
of norms pertaining to asset classification, income recognitions, capital adequacy etc.
which the banks had to comply with current account convertibility was allowed for
the Rupee in accordance with IMF conditions.

Nationalized banks were allowed to raise funds from the capital markets to strengthen
their capital base .The lending rates for commercial banks was deregulated, thereby
freeing them to lend more or as they saw fit Also, banks were allowed to fix their own
interest rates on domestic term deposits that matures within two years. Customers
were encouraged to move away from physical cash, as RBI issued guidelines to the
banks pertaining to the issuance of debit cards and smart cards.

The process of introducing computerization in all branches of banks began in 1993 in

line with the Committee on Computerization in Banks’ recommendations, which had
been submitted in 1989.The NSE (National Stock Exchange) began its operations in
1994.

RBI began the practice of auctioning Treasury Bills spanning 14 days and 28 days.
Capital index bonds were introduced in India for the first time. The newly adopted
policy of liberalization led the RBI to provide licenses to conduct banking operations
to some private banks such as ICICI Bank, HDFC Bank etc. The growth of industries
and expansion of economic operations also revitalized banking operations, which had
to keep up with the demand for various banking operations by the flourishing and
even nascent enterprises. Bankers also responded to the renewed demand from the
industrial sector and regular customers. New technology and customer-friendly
measures were adopted by bankers to attract and retain customers.

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 CHAPTER-2: RESERVE BANK OF INDIA

Introduction

The pattern of central banking in India was based on the bank of England .England
had a highly developed banking system where the central bank functioned as a
banker’s bank. The central bank function has lender of last resort was on a condition
that bank should maintain stable cash ration as prescribe from time to time

The Reserve Bank of India was established on 1st April 1935, under the reserve bank
of India Act, 1934.The bank share capital was Rs5crore. The reserve bank of India act
require the government to maintain reserve of equivalent paid up capital

The RBI plays an important part in the Development Strategy of the Government of
India. It is a member bank of the Asian Clearing Union. The general superintendence
and direction of the RBI is entrusted with the 21-member Central Board of Directors:
the Governor, 4 Deputy Governors, 2 Finance Ministry representatives, 10
government-nominated directors to represent important elements from India's
economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata,
Chennai and New Delhi. Each of these local boards consists of 5 members who
represent regional interests, and the interests of co-operative and indigenous banks.
The bank is also active in promoting financial inclusion policy and is a leading
member of the Alliance for Financial Inclusion

Establishment:

The Reserve Bank of India was established in 1935 under the provisions of

the Reserve Bank of India Act, 1934 in Calcutta, eventually moved permanently
to  Mumbai. Though originally privately owned, was nationalized in 1949.

Organization and Management:

The Reserve Bank’s affairs are governed by a central board of directors. The board is
appointed by the Government of India for a period of four years, under the Reserve
Bank of India Act.

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  Full-time officials: Governor and not more than four Deputy Governors. The
current Governor of RBI is MR. Urjit Patel.
 There are 3 Deputy Governors presently: B P Kanungo, N S Vishwanathan
and Viral V Acharya.
 Nominated by Government: Ten Directors from various fields and two
government Officials.
 Others: four Directors: One each from four local boards.

Role of RBI in Indian banking sector

As the central bank of the country, the RBI performs a wide range of functions such
as
1) Acts as the currency authority – The Reserve Bank manages currency in India.
The Government, on the advice of the Reserve Bank, decides on the various
denominations. The Reserve Bank also co-ordinates with the Government in the
designing of bank notes, including the security feature. The Reserve Bank estimates
the quantity of notes that are likely to be needed denomination-wise and places the
indent with the various presses through the Government of India.

The Reserve Bank derives its role in currency management on the basis of the Reserve
Bank of India Act, 1934. All the currency notes except one rupee note are issued by
RBI. The RBI act permits RBI to issue notes in the denominations of rupees 2, 5, 10,
20, 50, 100, 500, 1000, 5000, 10000. Currently 5000 and 10000 rupee notes are not in
circulation.

1) Controls money supply and credit – RBI controls the supply of money in the
economy by exercising its control over interest rates in order to maintain price
stability and achieve high economic growth. RBI takes into account the following
monetary policies to control money supply and credit.

a) Cash reserve ratio: Cash Reserve Ratio It refers to the minimum amount
of funds in cash (decided by the RBI) that a commercial bank has to maintain with the
Reserve Bank of India, in the form of deposits. An increase in this ratio will
eventually lead to considerable decrease in the money supply. On the contrary, a fall
in CRR will lead to an increase in the money supply. Currently, it is 4%.

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b) Statutory Liquidity Ratio: SLR is concerned with maintaining the minimum
percentage (fixed by RBI) of assets in the form of non-cash with itself. The flow of
credit is reduced by increasing this liquidity ratio and vice-versa. As SLR rises the
banks will be restricted to pump money in the economy, thereby contributing towards
a decrease in money supply. The reverse case happens if there is a fall in SLR, it
increases the money supply in the economy. Currently, SRL is 19.5%.

c) Bank Rate Policy: The rate at which central bank provides loan to commercial
banks is called bank rate. This instrument is a key at the hands of RBI to control the
money supply in long term lending. At present the bank rate is 6.50%.

d) Repo Rate: Repo (Repurchase) rate is the rate at which the RBI lends short-term
money to the banks against securities. When the repo rate increases borrowing from
RBI becomes more expensive. Repo rate is always higher than the reverse repo rate.
At present it is 6.25%.

e) Reverse Repo Rate:  It is the exact opposite of repo. In a reverse repo transaction,
banks purchase government securities form RBI and lend money to the banking
regulator, thus earning interest. Reverse repo rate is the rate at which RBI borrows
money from banks. The banks use this tool when they feel that they are stuck with
excess funds and are not able to invest anywhere for reasonable return. At present it is
5.75%.

f) Open Market Operations: These include both, outright purchase and sale of
government securities, for both, injection and absorption of liquidity in the economy.

3) Manages foreign exchange – RBI ensures that short term fluctuations in trade do
not affect the exchange rate. In order to maintain stability in exchange rates, RBI
enters into foreign exchange transactions.

4) Acts as the banker of banks – As the bankers’ bank, RBI holds a part of the cash
reserves of banks, lends the banks funds for short periods, and provides them with
centralized clearing and cheap and quick remittance facilities.

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 BANKING SECTOR

Introduction to CRM
Customer relationship management, is a number of strategies and technologies that are
used to build stronger relationships between companies and their customers. A company
will store information that is related to their customers, and they will spend time
analyzing it so that it can be used for this purpose. Some of the methods connected with
CRM are automated, and the purpose of this is to create marketing strategies which are
targeted towards specific customers. The strategies used will be dependent on the
information that is contained within the system. Customer relationship management is
commonly used by corporations, and they will focus on maintaining a strong relationship
with their clients.

There are a number of reasons why CRM has become so important in the last 10 years.
The competition in the global market has become highly competitive, and it has become
easier for customers to switch companies if they are not happy with the service they
receive. One of the primary goals of CRM is to maintain clients. When it is used
effectively, a company will be able to build a relationship with their customers that can
last a lifetime. Customer relationship management tools will generally come in the form
of software. Each software program may vary in the way it approaches CRM. It is
important to realize that CRM is more than just a technology.

Customer relationship management could be better defined as being a methodology, an

approach that a company will use to achieve their goals. It should be directly connected
to the philosophy of the company. It must guide all of its policies, and it must be an
important part of customer service and marketing. It should allow the company to find the
factors that interest their customers the most. A company must realize that it is impossible
for them to succeed if they do not cater to the desires and needs of their customers.
Customer relationship management is a powerful system that will allow them to do this.

The architecture of CRM can be broken down into three categories, and these are
collaborative, operational, and analytical. The collaborative aspect of CRM deals with
communication between companies and their clients. The operational aspect of the
architecture deals with the concept of making certain processes automated. The analytical
aspect of CRM architecture deals with analyzing customer information and using if for
business intelligence purposes. Each one of these elements are critical for the success of a
CRM system. A company must learn how to use all three properly, and when they do this
proficiently, they will be able to build strong customer relationships and ensure their
profits for a long period of time. As more businesses continue to compete on a global
level, it will become more important for them to use successful Customer relationship
management techniques.

MEANING OF CRM

Customer Relationship Management is the establishment, development, maintenance and

optimization of long-term mutually valuable relationships between consumers and the
organizations. Successful customer relationship management focuses on understanding
the needs and desires of the customers and is achieved by placing these needs at the heart
of the business by integrating them with the organization's strategy, people, technology
and business processes.

At the heart of a perfect CRM strategy is the creation of mutual value for all the parties
involved in the business process. It is about creating a sustainable competitive advantage
by being the best at understanding, communicating, and delivering, and developing
existing customer relationships in addition to creating and keeping new customers.

DEFINITION OF CRM

“Customer Relationship Management (CRM) is a co-ordinate approach to the selling

process allowing the various operational, customer contact and sales promotional
functions of an organization to function as a whole.”

CRM IN BANKING SECTOR

Customer relationship management helps banking sector to use of technology and human
resources. These factors allow them to gain insight of consumer behavior and their
values. If CRM works better than the bank can provide better customer service, help sales
staff close deals faster, cross sell products more effectively, make call centers more
efficient, discover new customers, simplify marketing and sales processes and increasing
consumer revenue. It could not happen with just buying software and installing into the
system. In this the bank must decide as what type of customer information that they are
asking. It has to further decide as to what they intend to do with the information. After all
these after that the banks decide and run a model considered by them simply the best.
Efficiently dealing with all the customers and providing them what they actually need
increases the customer satisfaction. If the customer is satisfied they will always be loyal
to the bank and will remain with the same bank forever resulting in increasing customer
base and ultimately enhancing net growth of banking business. Installing a CRM system
can definitely improve the situation and help in challenging the new ways of marketing
and business in an efficient manner. Hence in the era of business every organization
should be recommended to have a full-fledged CRM system to cope up with all the
business needs. CRM is a powerful management tool that can be used to exploit sales
potential and maximize the value of the customer to the bank. Generally, CRM integrates
various components of a business such as sales, marketing, IT and accounting. This
strategy may not increase a business's profit today or tomorrow, but it will add customer
loyalty to the business. In the long run, CRM produces continuous scrutiny of the bank's
business relationship with the customer, thereby increasing the value of his business.
Although CRM is known to be a relatively new method in managing customer loyalty, it
has been used previously by retail businesses for many years. The core objective of
modern CRM methodology is to help businesses to use technology and human resources
to gain a better view of customer behavior. With this, a business can hope to achieve
better customer service, make call centers more efficient, cross-sell products more
effectively, simplify marketing and sales processes, identify new customers and increase
customer revenues. As an example, banks may keep track of a customer's life stages in
order to market appropriate banking products, such as mortgages or credit cards to their
customers at the appropriate time. The next stage is to look into the different methods of
gathering customers', where and how this data is stored and how it is currently being
used. For instance, banks may interact with customers in a countless ways via mails,
emails, call centers, marketing and advertising. The collected data may flow between
operational (such as sales and stock systems) and analytical systems that can help sort
through these records to identify patterns. Business analysts can then browse through the
data to obtain an in-depth view of each customer and identify areas where better services
are required.

Broadly, three types of CRM are adopted by banks:

1) Operation CRM – In this, CRM software are used to track and efficiently organize
inbound and outbound interactions with customers including the management of
marketing campaigns and call centers. Operational CRM supports frontline processes in
sales, marketing and customer service, automating communications and interactions with
the customers. They record contact history and store valuable customer information to
ensure a consistent picture of customer’s relationship with the bank that can be retrieved
by staff as per requirement.

2) Analytical CRM – It is about analyzing customer information for better addressing

marketing and customer service objectives and deliver the right message to the right
customer at the right time through the right channel. It involves the use of data analysis to
extract knowledge for optimizing customer relationships. The major benefits of
Analytical CRM to banks are:

Customer Retention

(b)  Fraud Detection

(c)  Optimizing marketing efforts as per customer life time value

(d)  Credit Risk Analysis

(e)  Segmentation and targeting

(f)   Development of customized new products matching the specific preferences and
priorities of customers.

3) Collaborative CRM – These involve systems facilitating customers to perform

services on their own through a variety of communication and interactive channels.  It
brings people process and data together and enables channeling of data and information
appropriately to bank staff for proactive decision making and enhanced informed
customer service and support activities. It provides a means of information sharing to all
concerned in timely manner and includes customer as a creator of service. The major
benefits of collaborative CRM to banks are

(a)  Providing efficient customer communication across a variety of channels

(b)  Online services to reduce customer service costs

(c)  Providing access to customer data while interacting with customers.

Thus, CRM can be understood as a catalyst enabling transformation of Banking

from traditional ‘Transactional banking’ to ‘Relationship Banking’ by use of technology.

Need of CRM in banks

Unlike in the past, the banks today are market driven and market responsive. With the
entry of new players and multiple channels, customers (both corporate and retail) have
become more discerning and less "loyal" to banks. This makes it imperative that banks
provide best possible products and services to ensure customer satisfaction. To address
the challenge of retention of customers, there have been active efforts in the banking
circles to switch over to customer-centric business model. The success of such a model
depends upon the approach adopted by banks with respect to customer data management
and customer relationship management. Over the years, Indian banks have expanded to
cover a large geographic & functional area to meet the developmental needs. They have
been managing a world of information about customers - their profiles, location, etc.
They have a close relationship with their customers and a good knowledge of their needs,
requirements and cash positions. Achieving customer focus requires leveraging existing
customer information to gain a deeper insight into the relationship a customer has with
the institution, and improving customer service-related processes so that the services are
quick, error free and convenient for the customers. As is proved by the experience, banks
are now realizing that one of their best assets for building profitable customer
relationships especially in a developing country like India is the branch- branches are in
fact a key channel for customer retention and profit growth in rural and semi-urban set
up. However, to maximize the value of this resource, our banks need to transform
their branches from transaction processing centers into customer-centric service centers.
This transformation would help them achieve bottom line business benefits by retaining
the most profitable customers. Branches could also be used to inform and educate
customers about other, more efficient channels, to advise on and sell new financial
instruments like consumer loans, insurance products, mutual fund products, etc. There is
a growing realization among Indian banks that it no longer pays to have a
"transaction- based" operating model. There are active efforts to develop a relationship-
oriented model of operations focusing on customer-centric services. The biggest
challenge our banks face today is to establish customer intimacy without which all other
efforts towards operational excellence are meaningless. The banks need to ensure through
their services that the customers come back to them. This is because a major chunk of
income for most of the banks comes from existing customers, rather than from new
customers. Customer relationship management (CRM) solutions, if implemented and
integrated correctly, can help significantly in improving customer satisfaction levels.
Data warehousing can help in providing better transaction experiences for customers over
different transaction channels. This is because data warehousing helps bring all the
transactions coming from different channels under the same roof. Data mining helps
banks analyze and measure customer transaction patterns and behavior. This can help a
lot in improving service levels and finding new business opportunities.

FOLLOWING ARE THE BENEFITS OF CRM TO BANKS:

Customer relationships are becoming even more important for banks as market conditions
get harder. Competition is increasing, margins are eroding, customers are becoming more
demanding and the life-cycles of products and services are shortening dramatically. All
these forces make it necessary for banks to intensify the relationship with their customers
and offer them the services they need via the channels they prefer.

CRM Banking Focuses on the Customer

CRM manages to places the customer at the focal point of the organization in order to
cater to his needs, satisfy him and thus maximize the profits of the organization. Banking
CRM understands the needs of the customer and integrates it with people, technology,
resources and business. It focuses on the existing data available in the organization and
uses it to improve its relationship with customers. Banking CRM uses information and
analytical tools to secure customer focus. Thus it is completely essential that banks
implement CRM in order to secure this.

Overall Profitability

CRM enables banks to give employee's better training that helps them face customers
easily. It achieves better infrastructure and ultimately contributes to better overall
performance. The byproducts of CRM banking solutions are customer acquisition,
retention and profitability. Banks that don't implement CRM will undoubtedly find
themselves with lesser profitability coupled with a sharp decline in the number of
customers.

Satisfied Customers

It is important to make a customer feel as if he / she is the only one - this will go a long
way in satisfying and retaining them. Bankers need a return on investment and it has been
proved that increase in customer satisfaction more than contributes a fair share to ROI.
The main value of CRM banking lies in satisfaction and increased retention of customers.

Centralized Information

CRM banking solutions manage to clearly integrate people, processes and technology.
CRM banking provides banks with a holistic view of all bank transactions and customer
information as well and stores it in a single data warehouse where it can be studied later.

CRM Banking Boosts Small Banks

Banking CRM software meets the needs of banks of all sizes in terms of attaining the
required accuracy and understanding of customers. Merely assuming that banks that are
considerably smaller in size have a better customer approach and are able to deal with
their customers in a better manner is wrong.

They are just as much in need of CRM aid as the others. Small banks on account of a
limited amount of money have had to realize that a large contribution to profits is directly
the result of good customer service. CRM makes sure that the bank delivers exactly what
the customer expects.

Customer Segregation
CRM enables a bank to see which customers are costing them and which are bringing
benefits. CRM provides them with the required analytical tools that will help them focus
on the importance of segregating these two and doing what is required to avail of the
maximum returns. After this segregation is done CRM easily enables banks to increase
their communication and cross-selling to their customers effectively and efficiently.

Aggressive Customer Acquisition

CRM solution supports the creation of demand generation through multi-channel and
multi-wave campaigns. The solution ensures the bank’s marketing message is
appropriately personalized and targeted towards the most suitable segment of prospects.
This optimizes marketing efforts and results in greater conversion of prospects

Improved Cross-sell Framework

The solution presents a unified 360° view of the customer, allowing single point access to
all the relationships the customer has forged with the bank. This along with robust
customer analytics effectively supports true relationship banking, providing a robust
framework for cross-sell opportunities. CRM solution also integrates with other white
labeled solutions to facilitate contextual and personalized customer engagement, with a
keen focus on right-talk driven right-sell.

Increased Operational Efficiencies and Collaboration

CRM solution supports business automation for processes and business activities,
eliminating manual tasks and reducing process time. Straight through processing abilities
enhance reduction in turnaround and processing time, increasing output and enabling
speedy completion of tasks. The multilingual Web-based single repository of information
enables remotely located bankers to collaborate and transact seamlessly.

Lower Total Cost of Ownership (TCO)

A Web-based solution leveraging new-generation technologies, Finacle CRM solution is

future-proof and can be seamlessly integrated with other enterprise applications. With a
robust architecture and proven scalability, it ensures protection for the bank’s technology
investments.
Campaign Management

Banks need to identify customers, tailor products and services to meet their needs and sell
these products to them. CRM achieves this through Campaign Management by analyzing
data from banks internal applications or by importing data from external applications to
evaluate customer profitability and designing comprehensive customer profiles in terms
of individual lifestyle preferences, income levels and other related criteria.

 Based on these profiles, banks can identify the most lucrative customers and customer
segments, and execute targeted, personalized multi-channel marketing campaigns to
reach these customers and maximize the lifetime value of those relationships.

Customer Information Consolidation

Instead of customer information being stored in product centric silos, (for e.g. separate
databases of savings account & credit card customers), with CRM the information is
stored in a customer centric manner covering all the products of the bank. CRM
integrates various channels to deliver a host of services to customers, while aiding the
functioning of the bank.

Marketing Encyclopedia

Central repository for products, pricing and competitive information, as well as internal
training material, sales presentations, proposal templates and marketing collateral.

360-degree view of company

This means whoever the bank speaks to, irrespective of whether the communication is
from sales, finance or support, the bank is aware of the interaction. Removal of
inconsistencies of data makes the client interaction processes smooth and efficient, thus
leading to enhanced customer satisfaction.

Personalized sales home page

CRM can provide a single view where Sales Mangers and agents can get all the most up-
to-date information in one place, including opportunity, account, news, and expense
report information. This would make sales decision fast and consistent.
Lead and Opportunity Management

These enable organizations to effectively manage leads and opportunities and track the
leads through deal closure, the required follow-up and interaction with the prospects.

Operational Inefficiency Removal

 CRM can help in Strategy Formulation to eliminate current operational inefficiencies.

An effective CRM solution supports all channels of customer interaction including
telephone, fax, e-mail, the online portals, wireless devices, ATMs, and face-to-face
contacts with bank personnel. It also links these customer touch points to an operations
center and connects the operations center with the relevant internal and external business
partners.

CRM with Business Intelligence

Banks need to analyze the performance of customer relationships, uncover trends in

customer behavior, and understand the true business value of their customers. CRM with
business intelligence allows banks to assess customer segments, which help them
calculate the net present value (NPV) of a customer segment over a given period to
derive customer lifetime value. Customers can be evaluated within a scoring framework.
Combining the behavior key figure and frequency to monetary acquisition analysis with a
marketing revenue quota can optimize acquisition costs and cut the number of inefficient
activities. With such knowledge, banks can efficiently allocate resources to the most
profitable customers and reengineer the unprofitable ones. Data warehousing solutions
have been implemented in Citibank, Reserve Bank of India, State Bank of India, IDBI,
ICICI, Max Touch, ACC, National Stock Exchange and PepsiCo. And Business
Intelligence players.

Implementation of CRM in Banking Sector 

Implementing a customer relationship management (CRM) system at a bank takes

careful planning. Banks need to involve key employees in the vendor decision so that
they choose a system which will give them the most for their investment. Ease of use and
ability to view information quickly are equally important to employees and managers. As
Destination crm.com points out, CRMs helps firms manage customer relationships better,
and customer relationships are vital to any company's success.

1) Gain employees' opinions. Ask bankers which data is important to them when
tracking customers and prospects. Most bank CRM systems include contact information,
account information and potential sale amounts. They also include an estimate of how
likely it is that the banker will convert a prospect into a new customer. When employees
provide input into the new system decision, they will be more willing to use the CRM
when it is rolled out.

 2) Research vendors: Ask similar sized banks for vendor recommendations. Find out if
the vendor provided appropriate CRM features for the bank's specific needs. Ask if the
company delivered the system on time and if the firm provided sufficient support and
training to employees after the sale. Create a spreadsheet comparing vendor features
and pricing.

3) Narrow the choices to three or four vendors. Meet with department managers that will
use the CRM system. Review the vendor choices and make a vendor decision as a group.
Arrange training by combining vendor resources and internal training resources. Allow
ample time for employees to learn the CRM system before holding them accountable
for using it.

Challenges Faced by Banks in Successful Implementation of CRM

1. The difficulty of obtaining a complete view of customers.

2. The need to move away from disjointed, standalone, and inconsistent channels to
provide a cohesive, multichannel offering. National Conference on Marketing and
Sustainable Development.
3. The burden of disconnected legacy systems and disparate databases that store client
financial data.
4. The cost and complexity of meeting stringent government regulatory and client
security and privacy requirements.
5. The pressure on margins and growth prospects from increased competition.
6. The costs associated with retaining customers and developing customer loyalty.
Although CRM can help banking institutions efficiently manage their customers,
many banks fail to meld the concept into the prevailing work culture. But the high
incidence of CRM failure has very little to do with the CRM concept itself. Usually
it's a case of the banks failing to pay attention to customer data they already have. A
lot of banks underestimate the magnitude of CRM. They tend to treat it just like any
other application technology, without realizing that CRM, if done properly, is a
strategic initiative that touches all areas of an organization.
 COMPANIES PROFILE

State Bank of India

State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services company. It is a government-owned corporation headquartered in Mumbai,
Maharashtra. The company is ranked 217th on the Fortune Global 500 list of the world's
biggest corporations as of 2017. It is the largest bank in India with a 23% market share in
assets, besides a share of one-fourth of the total loan and deposits market.

The bank descends from the Bank of Calcutta, founded in 1806, via the Imperial Bank of
India, making it the oldest commercial bank in the Indian subcontinent. The Bank of
Madras merged into the other two "presidency banks" in British India, the Bank of
Calcutta and the Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India in 1955. The Government of India took control of the
Imperial Bank of India in 1955, with Reserve Bank of India (India's central bank) taking
a 60% stake, renaming it the State Bank of India. In 2008, the government took over the
stake held by the Reserve Bank of India.

State bank of India is the largest bank in India. The bank traces its ancestry back through
the Imperial Bank of India to the founding in1806 of the Bank of Calcutta, making it the
oldest commercial bank in the Indian Subcontinent. The Government of India
nationalized the Imperial Bank of India in 1955, with the Reserve Bank of India taking a
60% stake, and renamed it the State Bank of India. In 2008, the Government took over
the stake held by the Reserve Bank of India. SBI provides a range of banking products
through its vast network in India and overseas, including products aimed at NRIs. With
an asset base of $126 billion and its reach, it is a regional banking behemoth. SBI has laid
emphasis on reducing the huge manpower through Golden hand shake schemes, which
led to a flight of its best and brightest managers which took to retirement allowances and
then went on the become senior managers at new private sector banks, and computerizing
its operations.

History of State bank of India

It originated as the Bank of Calcutta in June 1806.

 In 1809, it was renamed as the Bank of Bengal. This was one of the three banks
funded by a presidency government (British Govt.), the other two were the Bank
of Bombay(1840) and the Bank of Madras(1843).
 The three banks were merged in 1921 to form the Imperial Bank of India, it acted
as central bank of India or quasi central bank till establishment of RBI in 1935.
 After India’s independence, Imperial Bank of India became the State Bank of
India in 1955.
 SBI acquired the control of seven banks in 1960. These are called as subsidiaries
of SBI. They are
State Bank of Bikaner and Jaipur (SBBJ)
State Bank of Hyderabad (SBH)
State Bank of Mysore (SBM)
State Bank of Saurashtra (SBS)
State Bank of Indore (SBN)
State Bank of Patiala (SBP)
State Bank of Travancore (SBT)
 To make SBI a mega bank with trillion dollar business its associate banks were
started to merge with it. In 2008 SBS merged with SBI. The very next year, State
Bank of Indore (SBN) also merged.

Other five associate banks besides Bharatiya Mahila Bank (BMB), merged with SBI with
effect from 1 April, 2017. With this merger, the bank joins the league of top 50 banks
globally in terms of assets.
International presence

The bank has 131 overseas offices spread over 32 countries as on 31st Dec 2009. It has
branches of the parent in Colombo, Dhaka, Frankfurt, Hong Kong, Johannesburg,
London and environs, Los Angeles, Male in the Maldives, Muscat, New York, Osaka,
Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and
Singapore, and representative offices in Bhutan and Cape Town. SBI operates several
foreign subsidiaries or affiliates. In 1990 it established an offshore bank, State Bank of
India (Mauritius). In 1982, the bank established a subsidiary, State Bank of India
(California), which now has eight branches - seven branches in the state of California and
one in Washington DC that it opened on 23 November 2009. The seven branches in
California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego
and Bakersfield. The Canadian subsidiary, State Bank of India (Canada) too dates to
1982. It has seven branches, four in the greater Toronto area and three in British
Columbia. In Nigeria SBI operates as INMB Bank. This bank began in 1981 as the Indo-
Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It
now has five branches in Nigeria. In Nepal, SBI owns 50% of Nepal SBI Bank, which
has branches throughout the country. In Moscow SBI owns 60% of Commercial Bank of
India, with Canara Bank. The State Bank of India, popularly known as SBI, is one of the
leading banks in India. The bank traces its origin to the first decade of the 19th century.
Later on, it was merged with the Imperial Bank. In the year 1955, the Government of
India nationalized the Imperial Bank along with the Reserve Bank of India. Ever since
that time, the bank acquired its present name that is SBI. The State Bank of India is
India's largest commercial bank. The bank has been striving sincerely to adhere to the
efforts of providing utmost customer satisfaction to the best possible extent. The SBI has
presence all over India with 16,000 branches. Not only this, the bank has made its roots
secured internationally as well. At present, SBI has 131 branches.
SBI created a unique method of serving its customers even on a holiday. One can find a
floating SBI ATM on a boat in the backwaters of Kerala. This caters to the needs of the
customers by providing service round the clock. Besides, the customers can also avail the
facilities of online banking and transactions.

Enhancing growth
On 1 April, 2017, SBI's five Associate Banks and the Bharatiya Mahila Bank merged
with the Bank. The merger resulted in SBI being listed among the top 55 banks globally
in terms of assets owned. This six-way merger showcased the Bank's ability to adapt to
the changing times and needs of customers, as well as bolster its leadership position in
the industry. The new additions made to the SBI family have increased the State Bank's
footprint across India. As on 31 March 2018, the Bank operates 22,414 branches, 59,541
ATMs and has an employee base of 2, 64,041. It has a total customer base of more than
42 crore.

Subsidiaries of SBI

State Bank of India Services are most varied and innovative amongst all its
contemporaries. State Bank of India Services includes a host of products and services to
suit all types of consumers.

Banking Subsidiaries- State Bank of Bikaner and Jaipur (SBBJ), State Bank of
Hyderabad (SBH), State Bank of Indore (SBI), State Bank of Mysore (SBM), State Bank
of Patiala (SBP), State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT).

Foreign Subsidiaries - State bank of India International (Mauritius) Ltd., State Bank of
India (California), State Bank of India (Canada) and INMB Bank Ltd, Lagos.

Non- banking Subsidiaries - SBI Capital Markets Ltd (SBICAP), SBI Funds
Management Pvt Ltd (SBI FUNDS), SBI DFHI Ltd (SBI DFHI), SBI Factors and
Commercial Services Pvt Ltd (SBI FACTORS) and SBI Cards & Payments Services Pvt.
Ltd. (SBICPSL)

Joint ventures - SBI Life Insurance Company Ltd (SBI LIFE).

 SERVICES AND PRODUCT OFFERED BY STATE BANK
OF INDIA
 PERSONAL BANKING

• SBI Term Deposits

• SBI Loan for Pensioners
• SBI Recurring Deposits
• Loan against Mortgage Of Property
• SBI Housing Loan
• Loan against Shares & Debentures
• SBI Car Loan
• Rent Plus Scheme
• SBI Educational Loan
• Medi-Plus Scheme
• SBI Personal Loan
• Interest Rates

• e-Invest (ASBA) – IPO

Payments/Transfer

 Funds Transfer
 Intra-Bank Transfer
 RTGS/NEFT
 Credit Card (VISA)
 IMPS Payments
 NRI eZ Trade Funds Transfer
  E – Deposits
 E-TDR/e-STDR
 E-TDR/e-STDR under Income Tax Savings Scheme
 SBI Flexi Deposit
 E-Annuity Deposit Scheme
 E- Recurring Deposits
 Smart Cards
 Gift Card
 Smart Pay-out Card
 State Bank e Z Pay Card
 State Bank Achiever Card
 State Bank Virtual Card
 VISA Foreign Travel Card
 MasterCard Foreign Travel Card
 State Bank Collect
 Bill Payments
 Western Union Service
 NPS Contribution
 Power Jyoti Fee Collection (PUL)

Corporate and institutional relationship

• SBI-linking Farmers & Corporate in agriculture

• Contract Farming

• Value Chain Financing

• Warehouse Receipt Financing

• Group Financing Corporate & Institutional Relationship

CORPORATE BANKING

• Corporate Accounts Group (CAG)

• Project Finance
• Lease Finance

• Export Credit

• Strategic Business Units

• Deferred Payment Guarantees

• Term Loans

Government Business

• Direct Taxes • Indirect Taxes

• State Government Taxes

• Pension

• Senior Citizens Savings Scheme

• Passport Seva Kendra

• Online Payment User Guide

• Pension Payment for Autonomous Institutions

• Public Provident Fund (PPF)

• Sukanya Samriddhi Yojana

Services offered by SBI

 • DOMESTIC TREASURY

• BROKING SERVICES

• REVISED SERVICE CHARGES

• ATM SERVICES

• INTERNET BANKING

• E-PAY

• E-RAIL
• SAFE DEPOSIT LOCKER

• MICR CODES

• FOREIGN INWARD REMITTANCES

 NEW PRODUCT INTRODUCED

ZERO BALANCE SAVING A/C

Zero balance savings AC – Minimum one year lock-in period – Will enable us to capture
higher market share

MINOR BANK A/C

Minor Bank AC – Interest rates higher than normal savings AC – Education loan for the
minor at lower interest rate

MINOR A/C LINKAGE TO RECURRING A/C

Recurring AC for a minimum deposit of Rs 500/ month – Linked to family members AC

AGRIKART

Post digitalization, bank to act as middlemen/financers between farmers and

wholesalers/retailers bank branches could be used as warehouses for agricultural products

FAMILY TREE A/C

Savings AC for all members of the family, with a combined minimum balance of all
accounts instead of individual minimum balance Home loan at reduced interest rate, EMI
to be EC Sed from all the accounts alternately

PENSION A/C

Provide non dependency to customers even after retirement by giving pension amounts
Pension amount decided based on the customers average balance maintained in account

MULTI CURRENCY A/C

Customers can hold their balance in any currency of their choice – Bank tie-ups with
corresponding country’s banks to enable multi-currency holdings

CORPORATE LOAN WITHOUT SECURITY ON PROFIT SHARING

Corporate loans with higher interest rate, but without security corporate loans with
normal interest rates, without security, but a share in company’s profits.

0% FORECLOSURE CHARGES

Zero percent loan foreclosing charges, will means there be no charges on mobile/net
banking or ATM services

RESOURCE RM FOR CORPORATES

Raising funds through various sources apart from SBI Loan both national and
international, keeping in mind the cost effectiveness. • Managing funds and treasury
operation.

Investing the funds in both long term as well as short term capital needs

Health check-ups

Bank tie-ups with hospitals to provide regular health check-ups for customers .Checks
ups at discounted rates.

Tailor-made health insurance

Tie-ups with insurance companies for bank customers’ insurance policies health
Insurance schemes as per customers’ choices.

Business strategy for implementing customer relationship management.

CRM INITIATIVES OF SBI

State Bank of India today launched a Customer Relationship Management (CRM)

solution, which will improve the quality of customer service through streamlined service
management and enhanced customer focus. CRM solution is an integrated platform to
engage with customers throughout the life cycle to drive customer centric culture,
enhance customer experience and maximize customer relationship. CRM platform will
enable Bank’s frontline staff with required information and customer 360 degree view
which will facilitate faster first time resolution, improvement in turnaround time and
tracking of all interactions with customers in holistic way.

CUSTOMER RELATIONSHIP SCHEMES:

1) SBI has carved out separate section of bank to look into retail segment as Personal
Banking Branch (PBBs). These PBBs are planned to have a uniform set of interiors with
a certain facilities across the country to make customer feel the same level of comfort
with any of the bank branches in the country.

2) Every branch is supposed to form a customer relationship committee meeting every

month. This customer service committee is to consist of staff members plus 5 customers
from various customer groups as High Net worth Individual (HNI) customer, pensioners,
Industrial loan customers, Retail loan Customers etc. These customers are called at the
bank and are asked to lodge their complaints and offer their suggestions on various
matters pertaining to bank services. A report and minute of that committee is prepared
and follow up actions are reviewed in the subsequent meeting.

1. Every branch is supposed to organize one special customer relationship program every
quarter aiming at any of the customer issue coined in the customer service committee
meeting.

2. There is a customer service committee also which consists of members of the staff.
This committee meets once a month and discusses on the customer issues for betterment
of customer service

3. Corporate center of the bank has a separate Customer Relation cell. This cell is
supposed to design program for various customer requirements and do all arrangements,
which can increase customer satisfaction with the bank.

4. Pensioners, who constitute a large chunk of SBI customer group, are called for a
meeting to bring out their grievances and suggestions to improve banking service, once a
quarter.
5. To impart a feel good factor among its customers, bank also does community service
banking for schools and colleges. Various programs are organized as sports meet, college
functions, honoring toppers etc. Manager at local level can also offer certain scholarships
etc.

1) It has been made mandatory by the branches, which has more than 20 staff strength to
set up a counter of “May I help you”. This branch is supposed to help customers in all
their requirements as filling up a fixed deposit form, enquiry related to certain banking
products, or use of any types of service.

2) To attend customer’s query over telephone only, the bank has started a Help line at all
zonal offices. Any of the customer service requests can now be attended over telephone
only. This saves customer’s time, money and harassment. Most of the bank has already
applied for toll free numbers so that customers need not pay anything to avail this service.

3) Customer Calls: The branch managers/ Managers of divisions should invariably call on
customers at their place of work. In addition, all levels of staff should occasionally call on
customers at appropriate levels at their work places, depending upon circumstances.

4) Customer’s Day: SBI CGM, DGM and Branch managers meet the customers at their
respective headquarters on the 15th of every month (the next working day if 15th happens
to be a 139 holiday), for receiving their specific complaints/ suggestions and resolving
them at an earliest.

5) Customer Councils: The bank is presently experimenting with this new concept. With
a view to promoting better interaction between our operating staff and the customers, the
bank has decided to set up customer councils at branches having staff strength of 100 or
more and all intensive centers. 3 to 6 customers are co-opted by the branch, who in
presence of customer service committee, meet quarterly and identify areas of customer
services and suggest steps to improve the same.

6) Cash Management Product: The Bank has set up a technology driven collection
system for providing faster credit to high value customers. Around 240 SBI branches at
230 centers covered under Cash Management Product (CMP) through VSATs. For the
year 2002-2003, 35 lacs instruments collected with total turnover of Rs. 1, 80,000 crores.
7) SBI Credit Khazana: This is a housing loan scheme for the customers who were
regular in servicing the loan. Under the scheme, customers can enjoy lower interest rates
and margins for the other retail products of the bank like car loan, education loan,
personal loan, tractor loan, etc. (Source: Business Line, September 10, 2003)

8) SBI Cash Plus: The State Bank Cash Plus is an international ATM - cum - debit card
that allows the customer to draw cash from MAESTRO / CIRRUS branded ATMs in
India or abroad as well as millions of merchant establishments the world over. This
product has been designed to take care of requirements of premium customers.

COMPLAINT HANDLING MACHINARY

Bank has looked at grievance redressal as very important for customer service and
customer delight. For, bank has made several arrangements, which are as follows:

1. Complaint cum suggestion Box: A transparent glass window should be fixed at the
bottom of the complaint cum suggestion box. Branch managers have made responsible
for keeping watch on that.

2. Display of Notice: It should be at a prominent place, indicating the five basic services
that the customer should expect from the branch.

3. Disposal of complaints: all complaints whether verbal or written must be entered in the
branch complaint book and acknowledged within 24 hours. The triplicate copy of the
complaint format should be sent to the concerned controlling authority together with the
branch comments as to the manner of disposal^ so that the controlling office may have a
proper monitoring). The complaint should be finally settled within a maximum period of
21 days, under confirmation to the controlling office.

4. Complaint Register: should be verified by the branch inspector. Suitable remedial

measures should be initiated to avoid their recurrence. 5. Customer service audit: Format
containing 25 core customer service areas on which customer service evaluation and
monitoring should be based- to be sent to the controlling authority at the end of March/
June / September/ December.

Channel Banking
Apart from this, the Bank has also gone in strongly for "CHANNEL BANKING"
approach bringing its Customers direct access to Banking facilities round the clock
throughout the year across the country from any location. These services are:

i) PHONE BANKING: The state-of-the-art phone banking service (automated and

unattended) aims to provide convenience for customers at the touch of a button. • The
facility allows customers access their bank accounts through telephone, any time at day
or night and from anywhere. . The facilities being offered are: Balance enquiry, Details of
last five transactions or transaction from a recent date, Request for statement of account
through FAX or to be sent by post/courier, request for a new cheque book/ drafts/ bankers
cheques/ account transfer request etc.

ii) INTERNET BANKING: Internet Banking offers convenient anytime, anywhere

remote banking facility. With just a PC with Internet connection one can have access to
one’s account information, view and print statement of accounts, put through Funds
transfer between accounts, Request for cheque book, Drafts, Bankers cheque, standing
instructions, Renew a term deposit, stop payment instructions, open an account, close a
loan account etc. over the Internet Banking channel.

TECHNOLOGY INITIATIVES BY SBI

With increased competition and new business opportunities in the market place, it is
imperative for the Bank to introduce and absorb technology extensively and at a rapid
speed, not only to remain customer-friendly, efficient and competitive for existing
services and business but also, and perhaps more importantly, to be able to manage newer
forms of business and services in an increasingly dynamic and global environment. The
Bank has adopted and is pursuing effectively its IT policy with the aim of achieving
efficiency in operations, meeting customer and market expectations and staying ahead in
competition. SBI has been conferred the "SPECIAL AWARD FOR EXCELLENCE IN
BANKING TECHNOLOGY" by Institute For Development & Research in Banking
Technology (IDRBT), Hyderabad in recognition of Bank's performance in Branch
Computerization, Net Work Infrastructure, Technology application and overall
Technology absorption for operational efficiency and Customer Service. SBI Home page,
the Bank's website, is proving to be a handy tool for most of these technological
advancements. It has been redesigned to provide a wide range of information, including
profile of all SBI branches. The site is a window for all the products of the Bank and the
popularity of the website is growing ever since it has been redesigned.

The site offers the following features:

One click navigation, seamless integration of different products and services offered by
the bank.

Useful information like branch locator, documentation required for Personal segment
loans, downloadable application forms, equated monthly instalment (EMI) calculators,
and maturity value calculators etc.

Help line facilities for customers in all the circles, e-poll facility and citizen’s charter.

The site offers detailed corporate profile, annual report, seamless integration with net
banking, product wise Frequently Asked Questions (FAQs), section for newsletters,
tenders etc.

Few of the major technological initiatives undertaken by the bank to provide better and
speedy services are as follows:

Software Installation under Core Banking Project: In a major initiative set to

revolutionize the banking industry in the country, State Bank of India, has selected Tata
Consultancy Services (TCS), Asia's largest global software solutions and consulting
services company, to supply, customize and implement the prestigious Centralized Core
Banking System. The project is one of the largest projects of its kind in the world in
terms of the number of branches, customers and transaction volume. The project involves
procurement, supply and installation of hardware and the core banking software,
customization of the core banking software, implementation, and roll out of the software
at SBI branches, and training and support. Centralized Core Banking System .The system
offers fast product launching capability, support for all delivery channels, true 24X7
anytime, anywhere service with no downtime. Under a new IT Architecture, the Bank’s
core banking solution will have a centralized database for all branches, including
Associate 145 Banks. The new solution will provide the bank the following advantages:
The Bank will migrate from distributed to centralized computing

Integrated Core Banking System will have the capability for online, real-time transaction
processing.

Multiple delivery channels.

Automated Treasury and Risk Management systems integrated into the Core Banking
System.

The new solution will help the Bank acquire Data Warehousing, data mining and
workflow capabilities.

The Core Banking Solution will be implemented throughout the country and also at
Bank's foreign offices with integrated networking.

The State Bank of India (SBI) has announced that it is due to implement Block chain

technology in the management of Know Your Customer (KYC) protocols. The Indian
bank has partnered with a Block chain company to develop the enterprise solution that
employs smart contracts to self-manage KYC protocols.

The Block chain-based platform will provide SBI an effective solution to boost the
efficiency of transactions without compromising either the deals’ security or the
confidentiality of its users. Because of its adoption of Block chain, the bank has joined
the growing number of financial institutions which adopted the technology in their
operations to cut costs and improve customer services.

Potential benefits of Block chain for banks

In a press statement as of early November 2017, the co-founder of Prime chain

Technologies cited some major benefits of Block chain in the banking industry, including
improved transparency, lower infrastructure cost and better transaction security.
“The key benefits of Block chain technology for banks include greatly improved security,
reduced infrastructure cost, greater transparency, auditability and real-time automated
settlement.”
 KOTAK MAHINDRA BANK

Established in 1985, the Kotak Mahindra group has been one of India's most reputed
financial conglomerates. 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. Today, the bank is one of the fastest growing bank
and among the most admired financial institutions in India.

Kotak Mahindra Bank has a network of 1,369 branches across 689 locations and 2,163
ATMs in the country (as of 31 March 2017). In 2018, it is the second largest private bank
in India by market capitalization after HDFC Bank. Spread all over India, not just in the
metros but in Tier II cities and rural India as well, it is redefining the reach and power of
banking. Presently it is engaged in commercial banking, stock broking, mutual funds, life
insurance and investment banking. It offers a wide range of banking products and
financial services for corporate and retail customers through a variety of delivery
channels and specialized subsidiaries in the areas of personal finance, investment
banking, general insurance, life insurance, and wealth management. It caters to the
financial needs of individuals and corporates. The bank has an international presence
through its subsidiaries with offices in London, New York, Dubai, Mauritius, San
Francisco and Singapore that specialize in providing services to overseas investors
seeking to invest into India. 
Subsidiaries
Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank.
KMCC's core business areas include Equity Issuances, Mergers & Acquisitions,
Structured Finance and Advisory Services.

Kotak Securities

Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses.
Over the years, Kotak Securities has been one of the leading investment broking houses
catering to the needs of both institutional and non-institutional investor categories with
presence all over the country through franchisees and coordinators. Kotak Securities Ltd.
offers online and offline services based on well-researched expertise and financial
products to non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus
Limited) has been formed with the objective of financing the retail and wholesale trade of
passenger and multi utility vehicles in India. KMP offers customers retail finance for both
new as well as used cars and wholesale finance to dealers in the automobile trade. KMP
continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management

Company

(KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak
Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 20,800 crore
and offers schemes catering to investors with varying risk-return profiles. It was the first
fund house in the country to launch a dedicated gilt scheme investing only in government
securities.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak
Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take
important financial decisions at every stage in life by offering them a wide range of
innovative life insurance products, to make them financially independent.

Product and services offered by kotak Mahindra bank

Kotak Mahindra Bank is one of the prominent subsidiaries of Kotak Mahindra group. The
activities of the company being parallel to its objective are very wide and cover all the
components of a Bank. The Basic area of Operations is the Banking business, other
products are meant for the regular revenue generation. Being a Banking house, the
company is in regular touch with Banking Accounts, Investment Services, Convenience
Banking and Other Services.

They offer complete solutions that address all your financial requirements, whether you're
an individual or a firm. From everyday banking to long term investments — their offering
covers it all. This wide range of products is delivered to you with a genuine
understanding of your specific need and warm, personalised service.

Kotak Mahindra Bank, it's not about selling you many different products — it's about
working out a holistic, pragmatic solution that addresses your financial needs. Through
their varied products, they commit themselves to becoming “banker” to the customer
rather than being “asset financier” to our customers.

Kotak Group Products and Services include

 Bank
 Credit Cards
  Life Insurance
 Mutual Funds
 Car Finance
 Securities
 Institutional Equities
 Investment Banking
 International Business
 Kotak Private Equity
 Kotak Realty Fund
 Wealth Management
 Services of Kotak Mahindra Bank

Deposit Accounts 

 Savings Account
 Current Account
 Term Deposits
 Corporate Salary Accounts
 JIFI Account
 Safe Deposit Locker
 Kotak 3-in-1 Account

Kotak Loans

 Personal Loans
 Home Loans
 Loan Against Property
 Education Loan
 Tractor Finance
 Rural Auto & Farm Equipment Finance
 Home Improvement Loans
  Home Loan Balance Transfer
 Gold Loans
 Commercial Vehicle Finance
 Loan Against Securities
 Construction Equipment/Infrastructure Finance
 Saral Auto Finance


Kotak Cards

 Debit Cards
 Credit Cards
 Compare Credit Cards
 Kotak Net card
 Best Compliment Cards
 Kotak Multi Currency World Travel Cards

Convenience Banking

 Net Banking
 Mobile Banking
 Phone Banking
 ATM Network
 Money Watch
 Hashtag Banking
 Kotak Payment Gateway
 Instant Balance Service
 Immediate Payment Service
 Alerts
  SMS Banking
 Cash Deposit Machine

Investment and Insurance

 Demat
 Mutual Funds
 Life Insurance
 Qualified Foreign Investor
 ASBA
 National Pension System

SAVINGS ACCOUNT

KOTAK MAHINDRA has got a variety of options of savings accounts to choose from
for its customers according to their convenience and requirements. These savings
accounts offer attractive returns along with personalized banking services at three
convenient average quarterly balances(AQB) levels of Rs.10000 (KOTAK EDGE
SAVINGS ACCOUNT), Rs.20000 (KOTAK PRO SAVINGS ACCOUNT) and at
Rs75000(KOTAK ACE SAVINGS ACCOUNT) The average quarterly balance levels as
well the corresponding services and benefits try to ensure the various customer needs and
requirements.

Thus the three account opening options in savings account are as mentioned above:

EDGE SAVINGS ACCOUNT: Kotak Mahindra Bank´s Edge Savings Account is a

complete financial package customized to suit individual banking needs. Its constant
endeavors enable regular financial transactions through online platform so that most of
payments can be made directly through your account or card.

Features & Benefits

Wide ATM access through the Kotak Mahindra Bank Debit Card
One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or enquire
balance at no extra charge!

Multiple Access Channels Access

An account through phone, mobile phone or internet to get information about account
balance or track transactions. One can even transfer funds through Phone Banking or Net
Banking. Financial payments facilitated through the savings account

Use the free Payment Gateway to make online payments for utility bills, credit cards,
online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available across 15
locations through Net Banking. Also get a multi-city cheque book so that money from
account is received by the beneficiary in the fastest possible time.

Free investment account

One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting your Bank
Account. Besides this you get a consolidated view of all your mutual fund investments
across schemes with updated returns status, latest NAV information and research reports.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep 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.

PRO SAVINGS ACCOUNT:

Kotak Mahindra Bank´s Pro Savings Account is an account packed with powerful
features to provide a superior banking experience at a very comfortable balance
requirement. They provide a relationship manager who will specifically take care of
banking and investment needs.

Features & Benefits

Free ATM access all domestic VISA ATM network

Walk into any VISA ATM in India to check balance or withdraw cash absolutely free. No
longer have to worry about locating your Bank or Partner Bank ATM – Use the first
VISA ATM that you spot, for cash withdrawal or balance enquiry transactions.

Multiple access channels

Access your account through phone, 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.

Free investment account

One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting bank account.
Besides this get a consolidated view of all the mutual fund investments across schemes
with updated returns status, latest NAV information and research reports.

Financial payments facilitated through the savings account

Use our free Payment Gateway to make online payments for utility bills, credit cards,
online trading of shares or even online shopping.

Quick and easy funds transfer

Quick funds transfer to a third party account with another Bank is available across 15
locations through Net Banking. Also get a multi-city cheque book so that money from
account is received by the beneficiary in the fastest possible time
Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep 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.

Dedicated relationship manager

You can contact for all your banking related queries and transactions to your customer
relationship manager. Your relationship manager will also help you with financial
planning and sound investment decisions.

Free banking transactions

You can issue demand drafts or send cheques for collection on branch locations without
any charge to your account.

ACE SAVINGS ACOUNT:

Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a world
of financial benefits and privileged banking transactions. The account carries benefits
ranging from personal investment advisory services to concierge services to free banking
transactions. One will find that this package of services and privileges is unmatched by
any other savings account in the market.

Features & Benefits

Free access at all domestic and international VISA ATMs

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.

Multiple access channels

Access the account anytime through land line, mobile phone or internet to get information
on account balance or track transactions. One can even transfer funds through Phone
Banking or Net Banking.

Financial payments facilitated through the savings account

Use the free Kotak Payment Gateway to make online payments for utility bills, credit
cards, online trading of shares or even online shopping. All this at the click of a mouse!

Quick and easy funds transfer

Transfer funds easily and with speed, to a beneficiary account at another bank. One can
avail of this facility by walking into any of branches or by simple logging on to Net
Banking. Also get a free multi-city cheque book so that money from your account is
transferred to the beneficiary's account at any of branch locations, in the fastest possible
time.

Free banking transactions

One can issue demand drafts or send cheques for collection at all branches for no extra
charge.

Attractive returns

Earn better returns in your savings account, with our 2-Way Sweep facility that
automatically sweeps out idle funds, above a threshold, from your account into Term
Deposits. These Term Deposits sweep back into account to meet fund requirements when
withdrawals exceed the balance available in the account, thereby providing maximum
liquidity.

CURRENT ACCOUNT

Kotak Mahindra Bank offers unparalleled advantages with its three Current Account
offerings. Whether small/ midsize business or an enterprise spread across multiple
locations in the country, would find a Current Account that's just designed for you. These
Current accounts offer attractive returns along with personalized banking services at three
convenient average quarterly balances(AQB)levels of Rs.25000 (KOTAK EDGE
SAVINGS ACCOUNT),Rs.50000 (KOTAK PRO SAVINGS ACCOUNT) and at
Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels
as well the corresponding services and benefits try to ensure the various customer needs
and requirements. With features ranging from Free DDs, Free Cheque Collection, Free At
-Par Cheque facility to Free Trading Account & free Demat Account, and more!

Thus the three account opening options in savings account are as mentioned above:

Edge Current Account

In need of a well-equipped bank account to keep pace in all the business endeavors. They
offer the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and the entire
gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich
Kotak Edge Current Account is the ideal way to make money work harder.

Features & Benefits

Multi City Banking

Current account/s with Kotak Mahindra Bank will be recognized in every other branch.
One can just walk into a Kotak Mahindra Bank branch in any of our branches across
country to satisfy all the banking needs.

Term Deposit linked Current Account

Kotak 2-Way Sweep ensures that money never stops working for you. Daily balances,
above a threshold level, in Current Account are automatically swept out into Term
Deposits (TD). This 'swept out amount' is brought back into account to meet fund
requirements when withdrawals exceed the balance available in the account (or when the
account balance goes below the specified threshold level.) With Kotak 2-Way Sweep you
enjoy the twin advantages of attractive returns & maximum liquidity.

Free Demand Drafts and Pay Orders

Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank Branch
location in India.
At-par Cheques

Get free At-par Cheques that are treated as 'local clearing' cheques across all branch
locations. All these at nominal costs.

Cheque Collection

All Outstation cheques, drawn on any of branch locations, are collected 'at nominal
charge' for you. The strong network of correspondent banks enables us to collect cheques
from 1600 locations across India at faster speed and minimal cost

Mobile Banking and Alerts

Our Mobile Banking & Alerts service enables to access bank account on Mobile Phone.
One can access all your standing instructions (SI), any large credits or debits, available
balance, balance below AQB, any SI failure and SIs successfully executed will be
intimated to you via SMS

PRO Current Account

You need a well-equipped bank account to keep pace with you in the ever changing
business scenario. We offer you the Kotak Pro Current Account, armed with Kotak 2-
Way Sweep, as well as an entire gamut of Banking Privileges and 'user-friendly'
Convenience Banking facilities. The feature rich Kotak Pro Current Account is the ideal
way to make your money work harder.

Key Features

 Dedicated Relationship Manager

 Free Demand Drafts & Pay Orders>
 Free At Home Services
 Better Forex rates and Efficient Trade Services

ACE Current Account

In the need of a well equipped bank account to keep pace with you in the ever changing
business scenario. They offer you the Kotak Ace Current Account, armed with Business
benefits and exclusive Ace Privileges and an entire gamut of banking conveniences
especially designed for you.

The feature rich Kotak Ace Account is the ideal way to make money work harder

Term Deposits

Key Features

 Ease and convenience of operation

 Liquidity through overdraft or sweep-in facility
 No penalty on pre-mature encashment
 Nomination facility available
 Give your portfolio stability of returns and safety and liquidity. Invest in Kotak
Bank Term Deposit. It offer attractive returns on term deposits and investing in
them is really simple and convenient.

Features & Benefits

Ease and convenience of operation

For the first time in India, New to Bank customer can also apply online for term deposit.

An existing customer, can place a term deposit through Phone Banking or Net Banking.
What's more, one can even renew this deposit by placing an instruction over phone.
Needless to mention, he can do all this and more by walking across into any of branches.

Liquidity through overdraft or sweep-in facility

Deposit will be available to you should you need them in case of an emergency. One can
avail up to 85% overdraft against term by paying 2% above deposit rate. This facility is
available for deposits above Rs.50, 000 for a tenure of 181 days or more. One can also
choose to link term deposit to savings / current account, whereby if need be, term deposit
will automatically be uncashed to meet withdrawal requirement.

No penalty on pre-mature encashment

In case term deposit is pre-maturely uncashed, one will earn interest at the rate prevailing
on the date of deposit for the withdrawn amount.

Nomination facility available

One can avail this facility for each & every account that open with us i.e. nominate
different persons for different term deposit accounts can choose to change the nominee
through a declaration in the appropriate form to revise the nomination during the term of
the deposit.

INVESTSMENT SERVICES

At Kotak Mahindra Bank, can recognize that financial needs vary, not just amongst
individuals, but across the different stages of your life. They have years of experience in
helping people put together an investment portfolio that works best for them.

DEMAT

Key Features

Efficient depository services that allow you to hold your shares in convenient, "demat"
formats and leverage opportunities in the stock-market when you spot them.

It offers streamlined, efficient depository services that allow to hold shares in the
convenient "demat" formats and leverage opportunities in the stock-market when you
spot them Being a brokerage house, the company is in regular touch with the share
market and its relative indexes like NSE &BSE, NCDEX. NSDL, CSDL.

MCX AND NCDEX

Kotak Mahindra Bank also allow to costumer to trade in commodity by MCX (Multi

Commodity exchange) and NCDEX (National Commodity daily exchange. In

NCDEX 55 commodity are to trade

PRODUCTS OFFERED BY KOTAK MAHINDRA BANK

The following are the various products of Kotak Mahindra Bank:

DEMAT & ON LINE TRADING ACCOUNT:

The 3-in-1 account integrates your banking, broking and demat accounts. This enables
you to trade in shares without going through the hassles of tracking settlement cycles,
writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer
Instructions etc.

INITIAL PUBLIC OFFERS (IPO’S)

In the above products we have discussed investment in equity through secondary markets
another way of investing in equity markets is through the primary market route .whenever
a company comes out with an initial public offering you may choose to apply for the
share. Based on number of valid application received, the company would then allot the
share to applicants.

The offline way of investing in an IPO is by filling physical application forms, cheques.
And submitting the forms through your broker. With KOTAK MAHINDRA BANK all
you have to do is filling number of share on the site and submit.

DERIVATIVES

Customers with different types of risk profile can use derivatives. Hedging the cash
market position ideal for low risk profile.

Taking advantage of arbitrage opportunity in equity and derivatives markets –ideal for
low risk profile. Taking a view on stock/index for as long as 3 month period – medium
risk profile

Speculative trading-high risk profile.

KOTAK MAHINDRA BANK offers online investment in future and option, with benefit
of automated settlements and online risk monitoring system

Mutual Funds
Key Features

 Assistance at every step of the investment process

 An experienced research team to analyze and research the Mutual Funds available
in the market
 Portfolio assistance

Team analyses and researches the Mutual Funds available in the market, helping you
make more informed decisions. The recommendations take into account all relevant
factors including the investment philosophy of the Asset Management Company,
portfolio quality, risk-adjusted returns and market trends.

The Mutual funds on advisory list range from Debt to Equity funds and are drawn from
top performing schemes of renowned Mutual Fund houses like Franklin Templeton,
Kotak, Reliance, Prudential ICICI etc. Relationship Manager will recommend the funds
that suit the investment objectives.

Instead of buying shares of different companies tracking the price movement’s

performance of the company, growth prospects of the industries etc. and then taking your
own buy/sell decision, you may consider making investment in equity/debt market
through the mutual fund route. Mutual fund is a SEBI registered entity that pools the
money of many individuals’ investors to purchase the stocks, bond or other financial
instruments .professional

Investing in mutual funds offline involves, tracking down the agents appointed by the
mutual funds AMCs, filling lengthy forms, writing cheque, rushing to the office of the
agents before the cut off timing to ensure that the desired NAV is allotted.

Banc assurance

They offer a range of carefully selected insurance policies across the entire spectrum of
life insurance products Relationship managers will analyze your insurance needs and
develop the solution that works best for you.

KOTAK INSURANCE has a wide array of insurance plans that have been designed with
the philosophy that different individuals are bound to have differing insurance needs.
The ideal insurance plan is one that addresses the exact insurance needs of the individual
that will depend on the age and life stage of the individual apart from a host of other
factors.

The various plans offered by KOTAK INSURANCE are as follows:

Kotak Smart Advantage Plan

Kotak Eternal Life Plans

Kotak Headstart Child Plans

Kotak Safe Investment Plan II

Kotak Flexi Plan

Kotak Easy Growth Plan

Kotak Capital Multiplier Plan

Kotak Term Plan

Kotak Preferred Term Plan

CONVENIENCE BANKING

Anywhere, Anytime Banking

In today's day and age time is money. You work hard and have a busy schedule. Doing
banking should be easy and convenient and not add to worries.

Kotak Mahindra Bank realize this and have specially tailored a wide range of value added
products and services to make money work for you. These, coupled with the highest
standard of customer care will make life simpler and easier.

Multiple Banking Channels

Today the technology driven banks are finding various means to reduce costs and reach
out to as many customers as possible spread over a diverse area. This has led to using
multiple channels of delivery of their products.

ATM (Automatic Teller Machine):

Kotak Mahindra Bank has a network of 1,369 branches across 689 locations and 2,163
ATMs in the country (as of 31 March 2017).In 2018, it is the second largest private bank
in India by market capitalization after HDFC Bank.

Net Banking:

Net banking means carrying out banking transactions via the Internet. Thus the need for a
branch is completely eliminated by technology. Also this helps in serving the customer
better and tailoring products better suited for the customer.

A customer can view his account details, transaction history, order drafts, electronically
make payments, transfer funds, check his account position and electronically
communicate with the bank through the Internet for which he may have wanted to visit
the bank branch.

Net banking helps a bank spread its reach to the entire world at a fraction of the cost

Phone Banking:

This means carrying out of banking transaction through the telephone. A customer can
call up the banks help line or phone banking number to conduct transactions like transfer
of funds, making payments, checking of account balance, ordering cheques, etc. This also
eliminates the customer of the need to visit the bank’s branch.

Mobile Banking:

Banks can now help a customer conduct certain transactions through the Mobile Phone
with the help of technologies like WAP, SMS, etc. This helps a bank to combine the
Internet and telephone and leverage it to cut costs and at the same time provide its
customer the convenience. Thus it can be seen that tech savvy banks are tapping the
entire above alternative channels to cut costs improve customer satisfaction

SMS Banking

Kotak Mahindra Bank's SMS Banking service enables you to access your bank account,
investment account and demat account on your Mobile Phone. Now get latest update on
your account balance, salary credits, large debits, large credits, holding value and much
more, on your mobile anytime.
BANKING HOURS

Kotak Mahindra Bank Account holders have been able to infer that Branch Banking is the
second most Frequent Point of Interaction with the Bank. The Average Banking Hours is
a very important aspect associated with any Bank. In today’s fast paced life where people
who hold Accounts with the Bank are busy working it is important that they can find a
way to visit the Bank without having to miss out on work.

The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm, the Bank is
open to the public for ten hours. These timings are convenient for especially those
Account holders who are working, these people can visit the Bank after their Office
finishes.

Apart from the Average Banking Hours Kotak Mahindra Bank offers to its Account
holders 24 Hour Branch, 365 Days Branch and the facility of Sunday Banking.

Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in India, this is a
big boon for people who cannot take the time out to visit the Bank during the normal
working hours and is also very handy during emergencies.

The 365 Day Branch of Kotak Mahindra Bank is also unique and the only other Bank
offering this service is ABN Amro , this Branch is open regardless of the fact that it is a
Sunday or a public holiday.

Best Compliments Card – the perfect gift

Introducing Best Compliments Card - the prepaid card from Kotak Mahindra Bank. It lets
your loved ones choose their own gift or shop or enjoy at any place that accepts Visa
cards, be it a shopping mall, a restaurant or a multiplex. So go ahead and give someone
the perfect gift. No Kotak Mahindra Bank account required.

Customer relationship management initiative by kotak Mahindra bank

Digital Tools for Empowerment:

KMBL strives to develop products and services that maximize value for all customers,
and is currently doing so through digital innovations. The Bank has increased its portfolio
of microloans lent specifically to women borrowers from rural areas, thus ensuring its
commitment to women empowerment.

Enhancing Consumer Experience:

A 24x7 customer service support is available for customers to raise their grievances
which is then handled directly by a Relationship Manager KMBL has recently set up a
separate service division of 100 employees dedicated to handling customer transactions
and maintaining relationships.

Availability of loans:

Medium scale loans available for Small and Medium Enterprises (SMEs), who focus on
advanced agricultural activities such as large scale cultivation, horticulture, floriculture
and other practices such as animal husbandry and cattle farming.  Large scale loans
available for organizations that focus on activities such as primary and secondary agro
processing.

Kotak Bharat Banking

The Kotak Bharat Banking app provides user friendly and simple interface to customers.
It enables them to perform essential banking transactions without an internet connection.
It rides on the existing SMS Banking platform. It is easy to navigate and supports
multiple regional languages, such as Hindi, Marathi, Kannada, Gujarati and Tamil, in
addition to English. Since it does not require internet connectivity to transact, and is
available even on the lowest version Android phones, Kotak Bharat Banking app can
become a daily companion for users with low end smartphones. Apart from basic banking
requests, Funds Transfer and Mobile/DTH recharge are key features that are popular
amongst all users.

Features of kotak bharat bank:

 Regional language support addressing language barriers and making an app easier
to use and understand.
 Low maintenance as it works on all Android phones and does not require internet
connection.
  Secure as users registered mobile number is verified while transacting.
Acknowledging

• Kotak Mahindra Bank launched on-line PIN (for debit and credit card) generation
feature through net-banking, mobile banking and IVR. On one end, this feature has
provided a huge convenience to customers and on the other end, significant cost saving to
the bank.

• Kotak Mahindra Bank has introduced differentiated cards with additional features.
These include the Ru Pay Debit Card, for customers opening accounts under PMJDY
scheme. Associate Card for representatives of customers whereby non-financial
transactions can be made through ATMs within Kotak network.

• Kotak Mahindra Bank introduced electronic platform for KYC. Customers can walk in
to the branch only with Aadhar number and with the help of biometric impression of
customer or OTP, the KYC details can be downloaded from UIDAI database through e-
KYC application. This has enabled faster on boarding of new customers.

Technological initiative by kotak Mahindra bank

AI-enriched App Conversation banking interface supporting 24x7 service, query

management and seamless transaction handling on all platforms

Biometric-enabled branch Leveraging biometric authentication for paperless and speedy

services

Context-enhanced customer experience Superior and customized services, leveraging

data analytics, robotic process automation and API interface

Data-empowered design of products, services, interfaces, touch points and processes

based on data analytics to deliver customer centric solutions
 Branching out into the digital world Kotak has opened four digital branches at
Lokhandwala (Mumbai), Badshapur (Gurugram), Jaipur and Kavuri (Hyderabad) to
enable customers to enjoy the self-service/assisted service facility in its 24x7 lobby. Over
90% of the cash and cheque deposit transactions in these branches have moved to self-
fulfillment machines. Kotak Mahindra Bank (Kotak) today announced the launch of its
banking services on a pilot basis on WhatsApp. Kotak is one of the first banks in India to
pilot the WhatsApp enterprise solution to offer a range of banking services and answer
queries. Customers can interact with Kotak on its verified WhatsApp number - +91 22
6600 6022.

Banking on customer analytics for a better customer experience

Over the years, banks have pivoted from the traditional role of being a lender and
managing risks to catering to an increasingly sophisticated and demanding customer
based, that interacts with the bank across multiple touch points. One of the key areas in
banking where analytics has created a lasting impact is customer and marketing analytics.
For example, in the case of a relationship manager, the executive is usually armed with
the customer’s portfolio and follow the basic parameters on how often a customer should
be called, what kind of relationship engagement one should follow. “The conventional
approach has been to leave decision-making at the judgement of a Relationship Manager
and to find out what to sell to the customer and when to sell to the customer

COMPARATIVE ANALYSIS OF SBI AND KOTAK MAHINDRA BANK

Product and services SBI bank Kotak Mahindra bank

ATM Pan-India ATMs 59,541 and
more than one crore Daily
average ATM transactions
The Bank replaced 6,793 old
ATMs and installed 3,883
new ones, which were
equipped with the latest
technology.
2,199 ATMs In FY 2018, ATM
network serviced 9.3 crore
transactions, which is 21.3%
more than last year. Of this, 7.6
crore transactions were cash
withdrawals. POS spends for the
year grew by 45% with overall
spends at 8,562 crore while e-
 Commerce spends grew by 75%
with overall spends at ` 2,801
crore and international spends
grew by 80% with overall
spends at ` 602 crore.
Customer base More than 42 Crore 13 million+ Bank active
customer base
Bank branches 22,414 bank branches 1,388 Bank Branches
Internet bank During the reporting period, Option to book Rail tickets has
approximately 159 crore been enabled on Net Banking
transactions were recorded • Customer can register GSTIN
through this secure and cost- and make GST payment through
effective channel. The INB Net Banking
user base registered a growth • Option to apply for Travel
of over 35% on YoY basis. Card through Net Banking has
During FY 2017-18, the Bank been enabled
made enhancements to its net • Customer can now attach
banking services including document while using Secure
provision of online access to mail in Net Banking
CIBIL scores, Aadhaar Customer will be able to
linking with Customer instantly Switch ON / OFF
Information File (CIF), credit card
enabling purchase of
sovereign gold bonds, SMS
alerts in Hindi and GSTN
integration.
Saving account Minimum Balance Rate of interest
Banks require you to maintain Earn upto 6% interest on your
a minimum balance in your saving account balance
savings account, while some Features
do not. Check what suits you, Choice of option to help you
a savings account with meet your saving goal optimally.
minimum balance or a zero No matter what you need, we
balance savings account. have option perfect for you
Rate of interest No transaction or monthly
Avail interest rates up to 7% account fees.

Debit card Features

Use your Debit card to make
unlimited transactions at all
ATMs across India at no
additional fee. Also avail
exciting offers and discounts
on online purchases and
various merchants across
 India.
Fixed deposits Duration
The period of fixed deposit in
SBI ranges from as low as 7
days to a long term of 10
years and depend on the
choice of the customer
Deposit
The minimum amount of
deposit is Rs.1000 and there
is no limit on the maximum
amount
Interest
The interest is payable
monthly or quarterly
depending on the customer’s
requirement. However, in
case of monthly interest
payment, the interest is paid
at a discounted rate
Credit cards Simply SAVE SBI
Card
Spend Rs. 2,000 or more in
first 60 days and get 2,000
bonus Reward Points.
Duration
The deposit can be
opened for a period of 5
years to 10 years
Deposit
The deposit account
holder can choose to
receive the interest on its
due date or re-invest the
interest and the principal
to earn further interest.
Interest
The minimum amount of
deposit is Rs.100 and the
maximum amount of
deposit is limited to
Rs.1.5 lakhs.
1.5 million Credit card holders
Essential Platinum Credit
Card
This credit card by Kotak
Mahindra Bank is great for
shopaholics. Here are a few
exclusive features of Essentia
Credit Card-
10% savings on
departmental and grocery
store spends
Spend 1,25,000 every 6
months and get 6 free
 PVR tickets or 1,200
reward points

Redeem your reward

points against cash,
airline tickets, air miles,
movie tickets, mobile
recharge and branded
merchandise

Air India SBI Platinum Royale Signature Card

Card
5,000 Reward Points and This is a premium credit card
complimentary membership and comes loaded with benefits.
to the Air India Frequent Top features of Kotak Royal
Flyer Program- Flying Signature Credit Card include-
Returns
Earn up to 4X reward
points on every 150 spent
across all spends done on
your Kotak Royale
Credit Card

Get up to 30,000reward
points on annual retail
spends of 8 lakh

2 complimentary
domestic airport lounge
access in a calendar
quarter

Save 1.8% railway

surcharge waiver for
transactions on IRCTC
website and 2.5% for
transactions on Indian
Railways booking
counters

In case your Credit Card

is stolen, you get a cover
 of 2,50,000 against
fraudulent usage up to 7
days pre-reporting

SBI Card ELITE Kotak Delight Credit Card

e- Gift Voucher
worth Rs. 5,000 A dining credit card by Kotak
Mahindra Bank, Kotak Delight
offers some amazing benefits,
such as-

 10% Cash back on all

your Dinning & Movie
spends
 A maximum Cash-back
of 600 per billing cycle
 Minimum spends of 10,
000 on categories other
than dining and
entertainment within the
billing cycle to avial cash
back
 Spend 1,25,000 every 6
months and get 4 free
PVR tickets
 1.8% railway surcharge
waiver for transactions
on www.irctc.co.in| 2.5%
for transactions on Indian
Railways Booking
Counters

HOME LOAN Interest Rate Rate Interest

8.45% onwards
8.40% onwards
Processing Charges
Up to 1% p.a.
Loan Amount
Rs. 10 crore Processing Charge

Cheque / Instrument Swap Upto 1.25% of loan amt.

Charges
Rs. 500 per instance
 Prepayment or Foreclosure
Charges
Nil
Technological advancement ‘SBI Mingle’
Its social media banking
platform for Facebook and
Twitter users. Using SBI
Mingle, its customers can do
a host of banking services
like checking balance and
requesting mini statements on
their Facebook or Twitter
accounts. 
COMPLAINT HANDLING
MACHINARY
Bank has looked at grievance
redressal as very important
for customer service and
customer delight
Loan Tenure
Upto 20 years
Loan Amount
Rs. 10 crores
Prepayment or Foreclosure
Charges
Nil if floating, upto 2% for fixed
rate
AI-enriched App Conversation
banking interface supporting
24x7 service, query management
and seamless transaction
handling on all platforms
Biometric-enabled branch
Leveraging biometric
authentication for paperless and
speedy services
Context-enhanced customer
experience Superior and
customised services, leveraging
data analytics, robotic process
automation and API interface
Data-empowered design Design
of products, services, interfaces,
touch points and processes based
on data analytics to deliver
customercentric solutions
Branching out into the digital
world Kotak has opened four
digital branches at Lokhandwala
(Mumbai), Badshapur
(Gurugram), Jaipur and Kavuri
(Hyderabad) to enable customers
to enjoy the self-service/assisted
service facility in its 24x7 lobby.
Over 90% of the cash and

Mobile banking In FY 2017-18, the mobile
banking channels of SBI
registered over 3.05 crore
users and processed
transactions amounting to Rs.
6,00,502 crore.
SBI Anywhere
This personal mobile banking
application is an extension of
SBI's highly popular INB
service available on the
mobile platform. The recently
added voice assisted banking
and 'myFitness' features are
gaining quick traction.
MobiCash
State Bank MobiCash aims to
bridge the gap between urban
and rural market and fulfill
aspirations across all sections
of the society, thereby
helping India move towards a
cashless economy. MobiCash
offers assistance for
conducting transactions
through the wallet using CSP
cheque deposit transactions in
these branches have moved to
self-fulfilment machines. Kotak
Mahindra Bank (Kotak) today
announced the launch of its
banking services on a pilot basis
on WhatsApp. Kotak is one of
the first banks in India to pilot
the WhatsApp enterprise
solution to offer a range of
banking services and answer
queries. Customers can interact
with Kotak on its verified
WhatsApp number - +91 22
6600 6022.
72% of Mobile banking
customers bank ONLY on
Mobile.
m Store
Customers can now book flight
tickets or make hotel
reservations, it is all possible
using m store option available
on Kotak Mahindra mobile app.
Customers can also book bus
tickets, buy adventure sports
gears, book tours, shop on
Flipkart, and subscribe to
magazines using m store.
My Kotak:
My Kotak feature allows
customers to select widgets to
personalise their home page with
the information they love to see.
Customers can also switch off
their MPIN and view certain
information without logging into
the app.
 (BSNL customers) services
and has zero dependencies on
the internet for completing
transactions.
SBI Buddy
Mobile Wallet SBI Buddy is
another digital payment
option provided to SBI's
customer as well as non-
customer base. Launched in
August 2015, SBI Buddy has
seen a remarkable growth in
its user-base, which expanded
to 1.29 crore as on 31 March,
2018.
Money Watch
Kotak Money allows the
customers to view month on
month expenses trends, set
budget, view all transactions
made, and keep a track of their
expenses. This feature also has
an option called Personal
Finance Manager which allows
customers to manage their
finances on multiple Kotak or
non-Kotak bank accounts.
Hashtag Banking
Customers can check their
account balance, transaction
history, request a cheque book,
or recharge their DTH account
using Hashtag Banking.
SMS Banking
 For those who do not have a
smartphone, Kotak Mahindra
offers SMS Banking. Instead of
browsing through the bank’s
website for information,
customers can now send a
message to get the information
they are looking for.
Instant Balance Services
 Obtaining information from
Kotak Mahindra Bank is just a
phone call away. Kotak
Mahindra has a 24*7 customer
care service offering account
related information to customers
via phone. Customers can call
the bank’s toll-free number at
1800 274 0110 for Instant
 Balance Services.

NEFT / RTGS NEFT: Minimum NO NEFT: minimum 2 lakh

minimum/ /Maximum upto 10 lakh
Maximum RS 10 lakh

RTGS : Minimum RS 2 lakh/

Maximum RS 10 lakh

Resolving customer queries Developing Chat Bots AI-led bot strategy

The Bank has developed .AI and the way customers

'Chat Bots' across different interact have changed the world
public interfaces wherein of personal finance and since
customers can interact with banking is often cited as a
the system in a language of perfect use case for chatbots,
their choice and receive Kotak Mahindra , too has a
responses to their queries multi-layered bot strategy up its
without any manual sleeve.
intervention.
 AI-enriched App
Smart Response to Customer
E-mails Conversation banking
interface supporting 24x7
The Bank has installed 'Smart
Response', a solution that service, query
generates automated management and
responses to emails received
on the customer support seamless transaction
email-id. The solution reads handling on all platforms
the incoming emails, and
based on the inbuilt logic  Biometric-enabled
prepares automated responses branch Leveraging
to the emails without any
manual intervention. biometric authentication
for paperless and speedy
SBI CARE
An innovative, dedicated services
customer care centre called  Context-enhanced
'SBI CARE' has been
introduced to cater to customer experience
customer queries and their Superior and customised
nonfinancial banking
requirements. SBI CARE services, leveraging data
 centres handle all types of analytics, robotic process
account related enquiry.
automation and API
interface
 Data-empowered design
Design of products,
services, interfaces, touch
points and processes
based on data analytics to
deliver customer centric
solutions.

Customer Privacy and Data  Continuos Security  Kay pay

Protection Review
 Ethical Hacking &  Mobile app
Red Teaming
 Security Operations
Centre (SOC), 24x7
 Cyber Crisis
Management Plan
 Security Awareness

INTERPRETATION AND CONCLUSION

SBI

In order to provide better value to customers, SBI have enhanced their digital banking
platform towards increasing the share of digital initiatives in products, services and
transactions, supported by technologically advanced backend operations.

Today, a differentiated and delightful customer experience has become more important
than just providing banking services. SBI have empowered the customers to fulfil their
banking needs through multiple channels of banking. Depending on individual
preferences and access, they have given their customers the ability to move away from
conventional cash and branch based banking towards new-age technology oriented
internet and mobile based banking solutions.

Furthermore, with the evolution of technology SBI have worked on deploying multiple
innovative technologies and are in the process of offering a range of newer digital
services. Millions of merchants are realizing the advantage of collaborating with SBI.
Most recently, SBI has enabled its customers to make digital collections through SBI Pay
(a mobile based payment solution), which rides on the Unified Payment Interface (UPI)
system of National Payments Corporation of India (NPCI) and State Bank Buddy, which
can be integrated with any corporate’s payment interface.

Digitization has helped to take control of the customer-experience ecosystem by

managing the business processes from the customers’ perspective. With the increasing
use of technology enabled devices, and in order to catch up with the increasing
expectations of the world SBI are planning to build clear and predictive insights into the
customers’ evolving needs by leveraging the CRM tool to use analytics and intelligence
around data.

Kotak Mahindra Bank

 It is one of the emerging private sector banks in India. Probably it can be considered as a
part of the second generation of banking institutions in the country that is highly
technology driven and disruptive with new innovative business models.

Although, Kotak Mahindra Bank brings a strong financial services industry legacy, it has
been quiet receptive and open to technological and business changes that are shaping up
the world today.

And this is clearly visible from its top management, which has created a post of chief
digital officer (CDO) to drive many of its digital business initiatives including Jifi,
Hashtag banking, Bharat Banking, M-Store , Kaypay and the latest 811 – a mobile
banking platform.

Almost 30% of kotak Mahindra bank customers opening accounts with them through the
811 product are showing eligibility for a credit card. They have already given out over
70,000 credit cards to 811 customers.

The bank have already reached a 12-million customer base from eight million in the
beginning of the year, the bank is close to the 16 million it targeted for the current
financial year. 

The bank also launched ‘Keya’ an AI-powered voice bot integrated with Kotak’s phone-
banking helpline aimed at augmenting the traditional interactive voice response system in
English. 
Kotak Mahindra Bank is the only Bank which has the facility of a 24 Hour Branch. As
for a 365 Day Branch the only Bank having this facility apart from Kotak Mahindra is
UTI Bank.

One of the most data-intensive sectors has made big data analytics part of their core
strategy and banks today are leveraging their most valued asset – the customer data to
drive profitable growth. India’s second largest bank, Kotak Mahindra Bank has been at
the center of digital growth and innovation and is rapidly innovating its analytics
landscape by mining large volumes of data for better customer engagement and
acquisition. The big data strategy across the bank’s various units and tells us why AI is
the way forward for Kotak Mahindra
Types of DATA analysis:

Ability to Resolve Complaints: The combined mean score of two variables that determine
the satisfaction to customer. The combined mean score are represented between “very
satisfied and satisfied”

Responsiveness of the Bank Staff: This CRM dimension refers to

the willingness of the bank staff to help customers and provide
them prompt servic
Responsiveness of the Bank Staff: This CRM dimension refers to
the willingness of the bank staff to help customers and provide
them prompt servic
Responsiveness of the Bank Staff: This CRM dimension refers to
the willingness of the bank staff to help customers and provide
them prompt servic
Responsiveness of the Bank Staff: This CRM dimension refers to
the willingness of the bank staff to help customers and provide
them prompt servic
Responsiveness of the Bank Staff: This CRM dimension refers to
the willingness of the bank staff to help customers and provide
them prompt servic
Banking Services: The variety of the products and services offered by banks is considered
here. The mean scores of both state bank of India and kotak Mahindra Banks, however,
lie in between ‘satisfied’ and ‘neutral’ range. There is higher consistency in the case of
kotak Mahindra Banks.

Speed of Counter Services: This dimension refers to customers’ satisfaction in respect of

time taken for deposit of cash and withdrawal of cash, issue a drafts, collection of
cheques and other documents etc. The consistency in the views expressed is also higher
for kotak Mahindra Banks compare to SBI.

Accounts and Deposits of the Bank: This factor refers to the satisfaction of customers
with saving accounts, current accounts and term deposits of the bank. kotak mahindra
Banks have higher level of consistency.

Overall Customers’ Satisfaction: The overall satisfaction of the customers towards CRM
practices of banks has been reveals that the customers in both the bank groups are
somewhat comparable, though kotak Mahindra banks perform better.
Research Methodology

The require data for the study are basically secondary in nature and the data are collected
from the annual report of the companies

INTERNET – which includes required data collected form SBI and kotak mahindra
Bank official website i.e www.kotak.com and www.sbi.com and some other website on
the internet for the purpose of getting all the require data of the banks.

www.rbi.org.in

Profit.ndtv.com

www.wikipedia.org

www.moneycontrol.com

www.ndtvprofit.com

Customer Relationship Management in Indian Banking Industry 01 Edition  (English,

Hardcover, R. K. Uppal)
Banking in India  (English, Hardcover, M. S. Shetty)
 Limitations of the study

 Difficulty in data collection

 The analysis and interpretation are based on secondary data contained in the
published annual report of SBI bank and kotak Mahindra bank for the study
period

 Due to limited time available, the study has been confined to a period of 3
years
 The study of CRM performance and condition of the company and cannot
show through picture of the activity of the company