A SUMMER TRAINING PROJECT REPORT

ON
“ Comparative Analysis Between Kotak
Mahindra Bank and HDFC bank ”

Submitted to the partial fulfilment of the requirements

For the award of Degree of
Bachelor of Business Administration

Pt. Neki Ram Sharma Govt College

MAHARISHI DAYANAND UNIVERSITY
ROHTAK
(Session 2023-24)

Submitted to Submitted by :
Dr. Chetna Rahul
BBA Deptt. BBA 3rd Year
Roll No. 1211271010021
Univ. Roll No. :
 ACKNOWLEDGEMENT

I deem it my proud privilege to express my indebtedness and sincere thanks to all those who have,
in various ways, helped me in the successful completion of the Summer Training Report and
without their invaluable help this Summer Training Report would not have been a reality.
I am also thankful to my friends for their great support during my Summer Training Report .
Finally I express my most sincere gratitude to my parents and my family members for supporting and
encouraging me to this challenging Summer Training Report .
I deeply acknowledge the support and inspiration provided by my academic career.

Rahul
 DECLARATION

I, Rahul, student of BBA hereby declare that the Summer Training Report entitled “Comparative

Analysis Between Kotak Mahindra Bank and HDFC Bank ”

is an original work and the same has not been submitted to any other Institute for award of any

degree. The Summer Training Report was presented to the supervisor of the Summer Training

Report . The feasible suggestions have been duly incorporated in consultation with the supervisor

of the Summer Training Report .

Rahul
 TABLE OF CONTENTS

➢ DECLARATION ➢ ACKNOWLEDEMENT ➢ PREFACE

Sr.No PARTICULARS Page no.

1. CHAPTER 1

➢ INTRODUCTION TO THE TOPIC 1-18

➢ OBJECTIVES OF THE STUDY
➢ COMPANY PROFILE

2. CHAPTER 2
19-22
➢ REVIEW OF LITERATURE

3.
CHAPTER -3
23-29
➢ RESEARCH METHODOLOGY

3. CHAPTER 4
30-48
➢ DATA ANALYSIS AND INTERPRETATION

4. CHAPTER 5

➢ FINDING 49-56
➢ CONCLUSION
➢ SUGGESTION
➢ LIMITATION

ANNEXURE
57-61
➢ BIBLIOGRAPHY
➢ QUESTIONAIRE
 PREFACE

Progress is a continuous process. It is relative and absolute. We can’t stop a

certain destination and declare that target has been achieved and we need
not go further.

The summer training program is designed to give the future managers

feel of the corporate happenings and work culture. These real life
situations are entirely different from the stimulated exercise enacted in an
artificial environment inside the classroom and it is precisely because of
this reason that this summer training program is designed, so that the
manager of tomorrow not feel ill in the case when the time comes to
shoulder responsibilities. The summer training is a bridge between the
institution and organization. Summer training program made us to
understand how theoretical knowledge will be applied in the practical
field.

It was exactly in this context that I was privileged to join Met Life
Insurance (No one US Insurance Company) on the 1 nd of May 2006, as a
summer trainee.. Met Life Insurance is known not only for its
professional management, but also for its enlightened and progressive
approach towards employee welfare and betterment of the society.

The experience that I have gathered over the past two months has certainly
provided me with an orientation, which, I believe, will help me shoulder any
assignment successfully in future. During this period the report which I made
was done after a deep, comprehensive and full-fledged study and is based on
my original
research and investigation
 CHAPTER 1 : INTRODUCTION

( 1.1 ) GENERAL INTRODUCTION ABOUT THE SECTOR

A bank is an institution that deals in money and its substitutes and provides other financial

services. Banks accept deposits and make loans or make an investment to derive a profit from

the difference in the interest rates paid and charged, respectively .

India has a well developed banking system. Infact , without a sound and effective banking

system , India cannot have a healthy economy. The banking system of India should not only be

hassle free but it should be able to meet new challenges posed by the technology and any other

external and internal factors. For the past three decades India's banking system has several

outstanding achievements to its credit. The most striking is its extensive reach. It is no longer

confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has

reached even to the remote corners of the country. This is one of the main reasons of India's

growth process

Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-

independence era to provide financial assistance to traders, agriculturists and budding Indian

industrialists. The origin of banking in India can be traced back to the last decades of the

18th century. The General Bank of India and the Bank of Hindustan, which started in 1786 were

the first banks in India. Both the banks are now defunct. The oldest bank in existence in India

at the moment is the State Bank of India. The State Bank of India came into existence in 1806.

At that time it was known as the Bank of Calcutta. SBI is presently the largest commercial bank

in the country.
The banking industry in India is sufficiently capitalized and regulated. The economic and financial

conditions here are better than in any other country. Liquidity, credit, and market studies have proven

Indian banks to be resilient. They have negotiated the downturn in the global economy well.

The role of central banking in India is looked by the Reserve Bank of India, which in 1935 formally

took over these responsibilities from the then Imperial Bank of India. Reserve Bank was nationalized in

1947 and was given broader powers. In 1969, 14 largest commercial banks were nationalized followed

by six next largest in 1980. But with adoption of economic liberalization in 1991, private banking was

again allowed.

The central bank is the apex financial institution in the banking and financial system of a country. It is

regarded as the highest monetary authority in the country. It acts as the leader of the money market. It

supervises, control and regulates the activities of the commercial banks. It is a service oriented financial

institution. The Reserve Bank of India (RBI) is the topmost body monitoring the Banking

Industry. Any shortcomings or discrepancies are dealt with by the RBI

The banking industry in India is divided into scheduled and non-scheduled banks ie. the commercial

banking structure in India consists of : Scheduled Commercial Banks and Unscheduled Banks .

Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule

of Reserve Bank of India (RBI) Act, 1934.

RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section

42 (6) (a) of the Act.

67,000 scheduled bank branches are located in India. They consist of cooperative banks and

commercial banks. The Public Sector Banks form the base of this sector in India. These are

those banks in which the Government of India holds a stake . They account for 78% of the assets

in the banking sector. The Private Sector banking is also making headway. They are leading in

mobile banking, phone banking, ATMs, and Internet Banking sectors. The government doe not

have any stake in these banks. Now a days even foreign banks are increasingly establishing
their base in India. JP Morgan, Standard Chartered, Bank of America, and many other international

banks have

established centers in India to tap its potential.

The government constantly encourages foreign investment in this sector, as the entry of foreign players

will help the sector to flourish . FDI in Indian banking can lead to improved efficiency, better

capitalization, and improved adaptability. So the government is attracting FDI, FII, and NRIs in this

field.

Even with the global recession, the investment in the banking industry is still prevalent though the

volume may have been reduced. FDI in India grew by 145% between 2006 and 2007 and by 46.6%

during 2007–2008. The FDI in 2009 was down to 18.6%.

However, with the recession abating the investments are sure to rise.

Overall, the Indian banking industry has immense potential for further growth and expansion.
 ( 1.2 ) INDUSTRY PROFILE

(a) ORIGIN AND DEVELOPMENT OF THE BANKING INDUSTRY

Banking system in India has its roots in since ancient times. The first banks were the religious

temples of the ancient world, and were established in the third millennium B.C. Temples were

chosen as they were sacred and thus possibilities of a theft taking place was minimal. The temple

priest or the merchants were left with the work of account keeping. Later on in the evolution of

the banking system came the money lenders (SAHUKARS) who are prominent even today in the

villages of India. Despite these early informal modes of banking, the first conventional bank in

India, though conservative, was established only in 1786.

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) as independent units and called it

Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of

India was established which started as private shareholders banks with mostly Europeans

shareholders.

In 1865 Allahabad Bank was established and was fir the first time set up exclusively by Indians.

Punjab National Bank Ltd. was set up in 1894 with its headquarters at Lahore.

Between 1906 and 1913, Bank of India, Central Bank of India, Bank of

Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of

India came in 1935.

From 1786 till today, the journey of Indian Banking System can be segregated into three distinct

phases. They are as mentioned below:

Table 1.1: Banks established during 1786-1969

1 st
PHASE YEAR BANK
1786 General Bank of India
1807 Bank of Hindustan
1. During the
1809 Bank of Bengal
first 1840 Bank of Bombay phase

the 1843 Bank of Madras growth

1865 1st bank established exclusively by Indians -Allahabad Bank
was very 1894 Punjab Bank of India slow

and banks Bank of India, Central Bank of India, Bank of Baroda, also

1906 Canara Bank, Indian Bank

1913 Bank of Mysore
1920 Imperial Bank
1935 RBI
1991 Liberalisation of Banking practices
experienced periodic failures.

2. There were approximately 1100 banks, mostly small. To streamline the functioning and

activities of commercial banks, the Government of India came up with The Banking

Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per

amending Act of 1965 (Act No. 23 of 1965).

3. Reserve Bank of India was vested with extensive powers for the supervision of banking in

India as the Central Banking Authority. It tightly controlled the banking environments and

was conservative in its approach especially towards the fixation of interest rates.

4. Public had lesser confidence in the banking system and relied more on the depositing their

money with the Postal services of India. As an aftermath deposit mobilization was slow. Also

as the economic condition of the country was not very strong during those times people did
 not have enough money to experiment with and mostly choose to give it to traders who would give

better rate of return.

2 nd
PHASE

1. It was in the year 1955 that the Government took major steps towards the Indian Banking Sector

Reform. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large

scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal

agent of RBI and to handle banking transactions of the Union and State Governments all over the

country.

2. In the year 1969 a major drive to nationalize banks was carried out for example seven banks

forming subsidiary of State Bank of India were nationalised and 14 major banks in the country were

nationalized.

3. The nationalisation of these and the other banks 80% of the banking segment in India under

Government ownership thus strengthening the fundamental base of these banks. Also these helped

in gaining the faith and confidence of the people in the banking system and these institutions. This

step helped the institutions in raising the levels of deposits and advances from 800% to 11000%.

4. The following are the steps taken by the Government of India to Regulate

Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act.

1955: Nationalisation of State Bank of India.
 1959: Nationalisation of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalisation of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalisation of seven banks with deposits over 200 crore

3 RD
PHASE

This phase has introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name

which worked for the liberalisation of banking practices. The major reforms of the banking system

which has shaped the success story of Indian banking system were done in this phase. Some of the

reforms are-

To create an environment for banks to flourish by deregulating interest rates, reducing reserve

requirements and allocating credit to certain sectors.

(Y V Reddy: Banking sector reforms in India - an overview)

It is result of these reforms that the people have options to choose which banker to bank with. They are

flooded with variety of options from which they can choose and decide how they wish to invest their

money. The country is flooded with foreign banks and their ATM stations. Banks are putting sincere

Efforts to give a satisfactory service to customers. The entire system became more convenient and swift

and customers ease is

the priority.

The financial system of India has shown a great deal of resilience. It is sheltered from any crisis

triggered by any external macroeconomics shock as other East Asian Countries suffered. This is
all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet

fully convertible, and banks and their customers have limited foreign exchange exposure.

(b) GROWTH AND PRESENT STATUS OF THE BANKING INDUSTRY

A Sound and healthy banking system forms the backbone of any economy. The Indian banking industry

is going through competitive times. With the lowering of entry barriers and liberalization of banking

practices the competition has become intense and scope of differentiation on the basis of products sold

has significantly reduced. Banks are now focusing more on services and maintaining customer

relationships in order to enhance their hold in the market. Net banking, phone banking, home banking

and ATM banking services are the new focus areas.

The competition is not just from the multinational and foreign banks but is also emanating from

within the banking system, financial sector reforms and domestic players. All public sector

banks, private sector and foreign banks along with non banking finance companies are

competing for the same segment. The fact that India was only marginally affected by the

financial turmoil in the western countries because of its strong policies and sound regulations has

only led to add to the already intense competition in the industry. The news has reassured the

public at large that the Indian financial and banking systems have a strong base and thus it has
helped more people to invest in banks and also attract foreign bankers to India. This has lead to

increasing the level of competition.

India’s banking sector is growing at a fast pace. India has become one of the most preferred banking

destinations in the world. The reasons are numerous: the economy is growing at a rate of more than

8%, Bank credit is growing at 30% per annum and there is an ever-expanding middle class of about 250

to 300 million people (larger than the population of the US) in need of financial services. The rural

market segment is yet to be exploited. The disposable income with the public is growing, also there is a

change in mindset and people are no more against taking credits and loans. This has significantly

increased the potential Market for bankers. All this enables double-digit returns on most asset classes

which is not so in a majority of other countries. Foreign banks in India achieving a return on assets

(ROA) of 3%, their keen interest in expanding their businesses is understandable. Indian markets

provide growth opportunities, which are unlikely to be matched by the mature banking markets around

the world.

The interplay between policy and regulatory interventions and management strategies will

determine the performance of Indian banking over the next few years. Legislative actions will

shape the regulatory stance through six key elements: industry structure and sector

consolidation; freedom to deploy capital; regulatory coverage; corporate governance; labor

reforms and human capital development; and support for creating industry utilities and service

bureaus. Management success will be determined on three fronts: fundamentally upgrading

organizational capability to stay in tune with the changing market; adopting value-creating M&A

as an avenue for growth; and continually innovating to develop new business models to access

untapped opportunities. Through these scenarios, we can paint a picture of the events and

outcomes that will be the consequence of the actions of policy makers and bank managements.
 ( c ) FUTURE OF THE BANKING INDUSTRY

A healthy banking system is essential for any economy striving to achieve good growth and yet remain

stable in an increasingly global business environment.

The Indian banking system has witnessed a series of reforms in the past, like deregulation of interest

rates, dilution of government stake in PSBs, and increased participation of private sector banks. It has

also undergone rapid changes, reflecting a number of underlying developments. This trend has created

new competitive threats as well as new opportunities.

The strong banking regulatory system has helped India to weather the storms of global credit

crunch. India's central bank RBI has already made cuts in Cash Reserve Ratio, or CRR, and

Statutory Liquidity Ratio, or SLR, to pump more liquidity into the economy. The interest rates

are also at record lows.

The future of banking will undoubtedly rest on risk management dynamics. Only those banks

that have efficient risk management system will survive in the market in the long run. The

effective management of credit risk is a critical component of comprehensive risk management

essential for long-term success of a banking

institution.

Consolidation :

Consolidation, which has been on the counter over the last year or so, is likely to gather

momentum in the coming years. Post April 2009, when the restrictions on operations of foreign
banks will go, the banking landscape is expected to change dramatically. Foreign banks, which

currently account for 5% of total deposits and 8% of total advances, are devising new business models

to capture the Indian market. Their fullfledged entry is expected to transform the business of banking in

many ways, which would be reflected in terms of greater breadth of products, depth in delivery

channels and efficiency in operations.

Despite the stiff resistance from certain segments, consolidation holds the key to future growth.

This view is underpinned by the following:

► Owing to greater scale and size, consolidation can help save costs and improve operational

efficiency.

► Banks will also have to explore different avenues for raising capital to meet norms under

Basel-II

► Owing to the diversified operations and credit profiles of merging banks, consolidation is

likely to serve as a risk-mitigation exercise as much as a growth

engine.

Though there is no confirmation yet, speculative signals arising from the market point to the

prospect of consolidation involving banks such as Union Bank of India, Bank of India, Bank of

Baroda, Dena Bank, State Bank of Patiala, and Punjab and Sind Bank. Further, the case for

merger between stronger banks has also gained ground — a clear deviation from the past when

only weak banks were thrust on stronger banks. There is a case being made for mergers between

banks with a distinct geographical presence coming together to leverage their respective

strengths.

Globalization :
rowing integration of economies and the markets around the world is making global banking a reality.

The surge in globalization of finance has already begun to gain momentum with the technological

advancements which have effectively overcome the national borders in the financial services business.

Widespread use of internet banking will widen frontiers of global banking, and make marketing of

financial products and services on a global basis possible. In the coming years globalization will

spread further on account of the likely opening up of financial services under WTO. India is one

of the 104 signatories of Financial Services Agreement (FSA) of 1997. This gives India’s

financial sector including banks an opportunity to expand their business on a quid pro quo basis.

As per Indian Banks' Association report ‘Banking Industry Vision 2010’, there would be greater

presence of international players in Indian financial system and some of the Indian banks would

become global players in the coming years. So, the new mantra for Indian banks is to go global

in search of new markets, customers and profits.

Technology :

There is an imperative need for not mere technology upgradation but also its integration with the

general way of functioning of banks to give them an edge in respect of services provided to their

constituents, better housekeeping, optimizing the use of funds and building up of MIS for

decision making, better management of assets & liabilities and the risks assumed which in turn

have a direct impact on the balance sheets of banks as a whole. Technology has demonstrated

potential to change methods of marketing, advertising, designing, pricing and distributing

financial products and services and cost savings in the form of an electronic, self-service product

delivery channel. These challenges call for a new, more dynamic, aggressive and challenging

work culture to meet the demands of customer relationships, product differentiation, brand
values, reputation, corporate governance and regulatory prescriptions. Technology holds the key to the

future success of Indian Banks.

Internet, wireless technology and global straight-through processing have created a paradigm shift in

the banking industry. The explosive growth of both the Internet and mobile and wireless technology is

revolutionizing the way the financial industry conducts business. The overall wireless technology

market is expected to grow profoundly in the coming years.

Regulations :

The RBI's approval for banks to raise funds abroad through innovative capital instruments holds great

significance. Such fund-raising, which includes preference shares, will, however, not just substitute

equity; it could have unintended consequences on the strategies of banks and their profitability. While

the cost of raising monies through such instruments is likely to be higher (close to 10 per cent), the

consequent higher leverage on equity funds is likely to result in expansion of return on net worth. This

is because the same amount of capital supports a higher volume of business, generating higher profits.

Skilled Manpower :

There will be a sea change for employees too. Secure jobs will be replaced by contractual appointments,

for a specified period of time. The unions will merge into the shadows and bank managements

will turn effective. As a result there will be swifter turn over of personnel in banks. But at the

same time, skilled personnel from

other disciplines will enter banks in increasing numbers.

Factors like skills, attitudes and knowledge of the human capital play a crucial role in

determining the competitiveness of the financial sector. The quality of human resources indicates

the ability of banks to deliver value to customers. Capital and technology are replicable but not
the human capital which needs to be valued as a highly valuable resource for achieving that

competitive edge. Business model, which comprises a comprehensive range of business solutions

delivered through a unique balance of portfolio and relationship management must be

incorporated.

Future Challenges :

►Competition

►Customer Retention

►Globalization ►Shrinking

Margin

Some Suggestions :

►Strong In-house research & market Intelligence

►Focused marketing- Focus on region-specific campaigns rather than national media campaigns

CONCLUSION:

What will the future of Indian banking look like? Will the reform in banking sectors face the

same fate as in power and telecom? It is increasingly evident that the economy offers

opportunities but no security! Therefore, the future will belong to those who develop good

internal controls, checks and balances and a sound market strategy. Business Growth, Cost

Efficiency and Evolution are therefore regarded as key drivers which will have to be addressed.
 CHAPTER 2 : PROFILE OF THE ORGANISATION

( 1.1 ) ORIGIN OF THE ORGANISATION

Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions

that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to

life insurance, to investment banking, the group caters to the financial needs of individuals and

corporates. The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its

various businesses and has a distribution network of branches, franchisees, representative offices and

satellite offices across 282 cities and towns in India and offices in New York, London, Dubai and

Mauritius. The Group services around 2 million customer accounts.

The Kotak Mahindra group is a financial organization established in 1985 in India. It was

previously known as the Kotak Mahindra Finance Limited, a non-banking financial company. In

February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the

license to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra

Finance Ltd. is the first company in the Indian banking history to be converted from a private

financial institution to a bank.

The bank is headed by K.M. Gherda as Chairman and Uday Kotak as Executive Vice

Chairman & Managing Director. Shankar Acharya is the chairman of board of

Directors in the company. A stake in the group was taken in by industrialists Harish Mahindra

and Anand Mahindra and this is the time when the company changed its name to Kotak

Mahindra Finance Limited.

The following diagram shows a picture of kotak’s success through the years.
Figure 1: Kotak’s progress chart

1.2 GROWTH AND DEVELOPMENT OF THE ORGANISATION

Within a small span of 6 years, the bank has spread it wings in several sphere of finances.

Presently, spread in 82 cities in India, the bank caters to the needs of its 5.9 million customers

spread throughout the length and breadth of country and even abroad. By the end of FY 2007-

2008, the Kotak Mahindra Bank had about 178 branches spread all over the country and it plans

to add some more branches by the end of FY 2010.

The bank is one of the most admired financial services providers in India because of its state-of-

the-art financial solutions for countless needs of individual and corporate clients. In addition to

Internet banking and phone banking, the bank provides suitable banking facilities through SMS

services, Mobile banking, Home banking, Netc@rd and BillPay facility to name a few.

The entire Kotak Mahindra group has a net worth of over Rs. 6,327 crore and at the end of FYP

2007-2008,it was reported that the consolidated profit of Kotak Mahindra Bank individually was

Rs 991.2 crore which was 84% higher than the consolidated profit of Rs 538.2 crore in FY07.

Kotak Mahindra Bank has 75 ATMs at 41 locations in the country which are 24x7 accessible.

Before the free transactions facility of RBI was made mandatory to all the ATM operating banks

in India from April 1, 2009, Kotak Mahindra Bank had underwent under a treaty with the HDFC

Bank to provide free network free of cost to most of its customers through its 1335 ATMs spread

in the country to ensure comfort to its customers.

Year Milestone
1986 Mahindra Finance Limited starts the activity of Bill Discounting
1987 Mahindra Finance Limited enters the Lease and Hire Purchase market
1990 The Auto Finance division is started
The Investment Banking Division is started. Takes over FICOM, one of India's
1991 largest financial retail marketing networks

1992 Enters the Funds Syndication sector

Brokerage and Distribution businesses incorporated into a separate company -

1995 Securities. Investment Banking division incorporated into a separate company - Mahindra

Capital Company

The Auto Finance Business is hived off into a separate company - Mahindra Prime Limited

(formerly known as Mahindra Primus Limited). Mahindra takes a

1996 significant stake in Ford Credit Mahindra Limited, for financing Ford vehicles. The launch

of Matrix Information Services Limited marks the Group's entry into

information distribution.
Enters the mutual fund market with the launch of Mahindra Asset Management
1998
Company.
Securities launches its on-line broking site (now www.securities.com).

2000 Commencement of private equity activity through setting up of Mahindra

Venture Capital Fund.

2001 Matrix sold to Friday Corporation
2001 Launches Insurance Services
Mahindra Finance Ltd. converts to a commercial bank - the first Indian company
2003
to do so.
2004 Launches India Growth Fund, a private equity fund.
Group realigns joint venture in Ford Credit; Buys Mahindra Prime (formerly 2005 known
as Mahindra Primus Limited) and sells Ford credit Mahindra.
2005 Launches a real estate fund
Bought the 25% stake held by Goldman Sachs in Mahindra Capital Company
2006 and Securities

(2.3) PRESENT STATUS OF THE ORGANISATION

9+Kotak Mahindra Bank Ltd. is presently one of the finest banking services providers in India.

The specialized products by Kotak Mahindra Bank India that drive mass interest among the
customers are Kotak Mahindra Life Insurance and other insurance products, Kotak Mahindra Mutual

Fund, and Kotak Mahindra Securities, Kotak

Mahindra Bank Credit Cards, Kotak Mahindra Bank Home Loan products, Kotak Mahindra
Bank personal loan, Kotak Mahindra Bank Visa C@rd and many more

products.

The Group's principal activity is to provide banking and related services. The Group operates in

four business segments: Treasury and Balance Sheet Management Unit (BMU), which

includes dealing in money market, forex market, derivatives, investments and primary dealership

of government securities; Retail Banking, which includes lending, commercial vehicle finance,

personal loans, agriculture finance, other loans and home loans, Branch banking, which

includes retail borrowings covering savings, current, term deposit accounts and branch banking

network/services including distribution of financial products, and credit cards; Corporate

Banking, which comprises wholesale borrowings and lendings and other related services to the

corporate sector; As of 31-Mar-2010, it had a network of 249 branches.

The various banking products by Kotak Mahindra Bank include:

Banking & Savings

• Banking Accounts

• Demat

• Deposits

• NRI Services

• Convenience Banking

Investments & Insurance

• Life Insurance
• Mutual Funds

• Share Trading

• Structured Products
• Gold Estate Planning

Loans & Borrowings

• Car Finance

• Home Loans

• Loans Against Property

• Personal Loans

Corporate & Institutional

• Corporate Finance

• Investment Banking

• Institutional Equities

• Treasury

( 2.4 ) FUNCTIONAL DEPARTMENTS OF THE ORGANISATION

Marketing

Marketing at Kotak Mahindra Bank categorises in to four departments - Marketing

Communications, PR & Corporate Communications, Marketing Activation &

Marketing Operations. These departments act as an advisory and support channel towards

marketing strategies and PR planning to ensure effective brand building through brand

awareness and visibility. The objective is to implement effective campaigns and promotions

which would help in meeting the business targets and getting media coverage for the same.
We provide support at two broad levels - Branch Marketing and Central Marketing.

Human Resource

The HR professional contributes to the organization by constantly assessing the effectiveness of the HR

function. He also sponsors change in other departments and in work practices. To promote the overall

success of his organization, he champions the identification of the organizational mission, vision,

values, goals and action plans. Finally, he helps determine the measures that will tell his organization

how well it is succeeding in all of this.

Wholesale Bank

We offer corporate clients & institutions a complete range of highly focused banking services &

solutions. Our service offerings are specially structured, taking into account client's specific needs and

keeping in perspective their risk profile. Kotak Bank will offer all services, products & solutions in

keeping with the credit & risk management philosophy & policies of the Bank as well as in keeping

with the relevant RBI circulars

& guidelines issued from time to time.

Retail Liabilities Operations (RL Ops)

The image of a typical operations unit has changed over the years from a processing centre to a

more customer focused service delivery unit. RL-Ops facilitates the customer to establish a

relationship with the bank. The Retail Liabilities Central Processing Centre (RL-CPC Mumbai)

functions as a hub for processing the account opening forms sourced from Western India, over

and above the centralised activities such as Direct Banking/Salary Uploads/Account Closures for

PAN India. Regional Processing Centre

(RPC) Ahmedabad caters to branches in Gujarat, RPC Delhi caters to the branches in North and Eastern

part of India while RPC Chennai caters to branches in the South.

Technology

Technology has opened up new markets, new products, new services and efficient delivery channels for

the banking industry. Online electronics banking, mobile banking and internet banking are just a few

examples.

Information Technology has also provided banking industry with the wherewithal to deal with the

challenges the new economy poses. Information technology has been the cornerstone of recent financial

sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to

strengthen the banking sector.

The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The

progress of technology and the development of world wide networks have significantly reduced the cost

of global funds transfer.

It is information technology which enables banks in meeting such high expectations of the

customers who are more demanding and are also more techno-savvy compared to their

counterparts of the yester years. They demand instant, anytime and anywhere banking facilities.

IT has been providing solutions to banks to take care of their accounting and back office

requirements. This has, however, now given way to large scale usage in services aimed at the

customer of the banks. IT also facilitates the introduction of new

( 2.6 ) PRODUCT AND MARKET PROFILE OF THE ORGANIZATION

COMPETITORS ie. HDFC BANK

History

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance Corporation

Limited (HDFC), India's premier housing finance company. It was among the first companies to receive

an 'in principle' approval from the Reserve Bank of India

(RBI) to set up a bank in the private sector.The Bank commenced its operations as a Scheduled

Commercial Bank in January 1995 with the help of RBI's liberalization policies. HDFC Bank was the

first bank in India to launch an International Debit Card in association with VISA (VISA

Electron) and issues the Mastercard Maestro debit card as well.

In a milestone transaction in the Indian banking industry, Times Bank Limited

(promoted by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000.

This was the first merger of two private banks in India. As per the scheme of amalgamation approved

by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received

1 share of HDFC Bank for every 5.75 shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than

1,000. The amalgamated bank emerged with a strong deposit base of around Rs. 1,22,000 crore

and net advances of around Rs. 89,000 crore. The amalgamation added significant value to

HDFC Bank in terms of increased branch network, geographic reach, and customer base, and a

bigger pool of skilled manpower.

1.1.
HDFC was incorporated in 1977 with the primary objective of meeting a social need - that of promoting

home ownership by providing long-term finance to households for their housing needs. HDFC was

promoted with an initial share capital of Rs. 100 million.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in the country through the

provision of housing finance in a systematic and professional manner, and to promote home ownership.

Another objective is to increase the flow of resources to the housing sector by integrating the housing

finance sector with the overall domestic financial markets.

Organisational Goals

HDFC's main goals are to a) develop close relationships with individual households, b) maintain its

position as the premier housing finance institution in the country, c) transform ideas into viable and

creative solutions, d) provide consistently high returns to shareholders, and e) to grow through

diversification by leveraging off the existing client base.

Geographical Presence

Bank at present has an enviable network of 1,725 branches spread in 779 cities across India.All

branches are linked on an online real-time basis. Customers in over 500 locations are also

serviced through Telephone Banking. The Bank also has 4,232networked ATMs across these

cities. The bank is looking at countries such as Canada and Singapore to expand its branch

networks abroad.The bank has already applied for licenses in Bahrain and Hong Kong and

currently having a representative office in Dubai.

Customer Profile base

The Bank's target market ranges from large, blue-chip manufacturing companies in the

Indian corp to small & mid-sized corporates and agri-based businesses Under

Retail Banking Services HDFC has adopted mass banking strategy.

HDFC Bank Mission and Objective

Mission - to be "a World Class Indian Bank", benchmarking ourselves against international standards

and best practices in terms of product offerings, technology, service levels, risk management and audit

& compliance.

Objective - to build sound customer franchises across distinct businesses so as to be a

preferred provider of banking services for target retail and wholesale customer segments, and to

achieve a healthy growth in profitability, consistent with the Bank's risk appetite.

SAVING ACCOUNT PRODUCT OFFERING:

Regular Savings Account

Premium Savings Account

REGULAR SAVINGS ACCOUNT

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 free banking transactions. You will find that this

package of services and privileges is unmatched by any other savings account in the market.
Features & Benefits :

Wide network of branches and over thousand ATMs to meet all your banking needs no matter where

you are located.

Bank conveniently with facilities like NetBanking and MobileBanking- check your account balance,

pay utility bills or stop cheque payment, through SMS.

Never overspend- Shop using your International Debit Card that reflects the actual balance in your

savings account.

Personalised cheques with your name printed on each cheque leaf for enhanced security.

Take advantage of BillPay, an instant solution to all your frequent utility bill payments.

Instruct for payment over the phone or through the Internet.

Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saverfacility on your

account.

Free cash withdrawals on any other Bank's ATM*

Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/- per

month.

Free InstaAlerts for all account holders for lifetime of the account.

Free Passbook facility available at home branch for account holders

(individuals)

Description of
Regular Savings Account
Charges

Option 1

(Average 5000 (Semi-urban)

NIL with a Fixed deposit of
Quarterly Option 2
 Minimum Balance Rs. 10,000 (Urban), Rs.
Rs. 50,000
Balance)

Rs. 750 per qtr (Urban &

Option 1
Semi-urban)
Charges on non In case of non maintenance maintenance of Rs. 50,000 Fixed Deposit

Option 2
thereof - Rs. 750 per qtr (Urban &

emi-urban)
PREMIUM SAVINGS ACCOUNT

By maintaining an average quarterly balance of just Rs. 25,000/- one get a host of premium

services from HDFC Bank absolutely free.

Features

Free unlimited transactions: Cash withdrawal and balance enquiry, at all

HDFC Bank ATMs & at all non HDFC Bank domestic ATMs using your

HDFC Bank Debit Card

Free Gold Debit Card for primary account holder for lifetime of the account.

Gold Debit Card for other account holders at Rs 250/- p.a.

Free Woman's Advantage/International Debit Card for all account holders for lifetime of the

account.

Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit of Rs. 2 lac

per month. Above Rs. 2 lac, charge of Rs.3.50/- per Rs. 1,000/- on the full amount.

Free Demand Drafts on HDFC Bank locations, upto a limit of Rs. 1 lac per day.

Free Demand Drafts on HDFC Bank locations, upto a limit of

Rs. 1 lac per day.

Self/Third Party Cash Deposit/Withdrawal at non-home branches, upto Rs 50,000/- per day free.

Above Rs 50,000 a charge of Rs 2.90 per thousand on the full amount would be applicable.

Optional “MoneyMaximizer” (sweep- out) facility for conversion of your surplus money into high

earning fixed deposits, at the threshold of Rs.1,25,000/-

. In the event of the balance in SavingsMax account exceeding / reaching Rs.1,25,000/-, the
amount in excess of Rs.1,00,000/- will be swept out in to a

Fixed Deposit with a minimum value of Rs.25,000/- for a 1year

1day period

Free BillPay & InstaAlerts for all account holders for lifetime of the account.

Free NetBanking, PhoneBanking & MobileBanking.

SPECIAL PREVILEGES

Insurance Benefits – One can enjoy an Accidental Hospitalization cover of Rs. 1lac per annum

on Savings Max account. One can also claim daily cash allowance at Rs.1,000/- per day for a

maximum of 15 days per year, for each day of hospitalization due to an accident. This is a re-

imbursement cover, extended only to the first holder of the Savings Max account. It would be

applicable after the completion of the 1st calendar quarter, post the quarter of a/c opening. Eg. If

the Savings Max a/c is opened in August 2009, the insurance benefit will apply only from

January 2010. For the claim to be accepted & processed, the first holder of the Savings Max

account should have fulfilled the below 2 conditions - Maintained an Average Quarterly Balance

of Rs. 25,000/- (irrespective of enjoying the benefit of a zero balance account with a Fixed

Deposit of minimum Rs. 1,00,000/-) in the calendar quarter previous to the quarter of the date of

accident. One should have done at least 1 purchase - point of sale (POS) transaction at a

merchant establishment using the Debit Card in the previous 3 months before the date of

accident.
CURRENT ACCOUNT OFFERED

Plus Current Account, Trade A/c, Premium A/c, Regular A/c, Flexi A/c, Apex A/c, Max A/c.

FEATURES

Free Account to account funds transfer between HDFC Bank accounts

Free payment and collection through RTGS.

Free payment and collection using NEFT (through Netbanking)

Free up to 50 Demand Drafts per month and can be issued from any HDFC

Bank Branch

Free up to 50 Pay Orders (PO) per month and can be issued from any HDFC Bank Branch.

Free anywhere collection & payment transactions (clearing) within HDFC Bank branch

network (except Dahej), up to Rs.100 lacs per month.

HDFC Bank offers you Doorstep Banking, a channel, which is convenient, secure and

hassle-free. Now, you can enjoy the benefits of banking right at your doorstep. The Bank will

arrange to render the services like Cash &

Cheque Pickup and Cash Delivery, through a reputed agency.

300 "At Par" cheque leaves free per month.

( 2.7 ) MARKET PROFILE OF THE ORGANISATION

Kotak Mahindra is one of India's leading financial institutions, offering complete financial

solutions that encompass every sphere of life. From commercial banking, to stock broking, to

mutual funds, to life insurance, to investment banking, the group caters to the financial needs of

individuals and corporates.

The group has a net worth of over Rs. 2,900 crore, employs around 8,800 people in its various

businesses and has a distribution network of branches, franchisees, representative offices and satellite

offices across 282 cities and towns in India and offices in New York, London, Dubai and Mauritius. The

Group services around 2 million customer accounts.

SAVING ACCOUNT PRODUCT OFFERING:

o Ace Savings Account o Pro Savings

Account o

Edge Savings Account

ACE SAVINGS ACCOUNT (AQB – 50000)

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 free banking transactions.

Features & Benefits:

Free access at all domestic and international VISA ATMs: One no longer have to worry about

locating your Bank or Partner Bank ATM - Use the first VISA ATM that you spot, for free cash

withdrawal or balance enquiry transactions.

Multiple access channels: Access your account anytime through your land line, mobile phone or

internet to get information on your account balance or track your transactions.

One can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account: Use the free Kotak Payment Gateway to

make online payments for your utility bills, credit cards, online trading of shares or even online

shopping.

Quick and easy funds transfer: Transfer funds easily and with speed, to a beneficiary account at another

bank. One can avail of this facility by walking into any of our branches or by simple logging on to Net

Banking. Account holder also gets a free multicity cheque book so that money from his account is

transferred to the beneficiary's account at any of kotak branch locations, in the fastest possible time.

Free banking transactions: One can issue demand drafts or send cheques for collection anywhere in the

country for no extra charge.

Active Money: Helps earn better returns in savings account, with the ActivMoney facility that

automatically sweeps out idle funds, above a threshold, from the account into Term Deposits. These

Term Deposits are sweep back into the account to meet fund requirements when one withdrawals

exceed the balance available in the account, thereby providing maximum liquidity.

Free investment account: Use the Net Banking facility to purchase/redeem mutual funds online

while directly debiting / crediting one’s bank account. Further, a free investment account for

tracking your investments with the Bank is provided. This account provides a consolidated view

of all your mutual fund investments across schemes with updated returns status, latest NAV

information and research reports.

Dedicated relationship manager: Account holder gets a one point contact for all banking related

queries and transactions. The relationship manager is qualified to help with financial planning

and sound investment decisions in order to meet financial goals.

Family Savings Account: The Kotak Ace Savings package allows customers to extend the Kotak

banking experience to three of his family members. Under this scheme one is eligible to open 3
Edge Savings Account with NMC waiver on all 3 accounts, so long as the AQB of your ACE account is

maintained.

Online trading account : Link the savings account to your online trading with Kotak Securities to

enable transfer of funds from your bank account to your account with Kotak Securities and vice versa.

PRO SAVINGS ACCOUNT – (AQB Rs 20000)

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. It is one of the best products

being offered in the entire industry.

Features & Benefits

Unlimited Access to your bank account at over 35,000 VISA and Cash net
ATMs in India and over 388,000 Merchant Establishments which accepts VISA credit/debit

cards in India.

Multiple access channels

Free investment account

Financial payments facilitated through the savings account

Quick and easy funds transfer Unlike the Ace account this facility is available
in only 15 locations through Net Banking.

ActivMoney

Dedicated relationship manager

Free banking transactions

Family Savings Account – Unlike Ace Under this scheme one is eligible to
open Only 1 Edge Savings Account with NMC waiver so long as the AQB of
your ACE account is maintained.

EDGE SAVINGS ACCOUNT (AQB – Rs 10000)

Kotak Mahindra Bank´s Edge Savings Account is a complete financial package

customized to suit individual banking needs

Features & Benefits

 Unlimited Access

Multiple Access Channels

Financial payments facilitated through the savings account

Quick and easy funds transfer Quick funds transfer to a third party account with
another Bank is available across 15 locations through Net Banking.

ActivMoney

45

Family Savings Account –Under this scheme one is eligible to open Only 1 NOVA Savings

Account with reduced AQB of 5000 Rs.

CURRENT ACCOUNT FEATURES

1. Remittance/ Payment Solutions - Demand Drafts/ Banker’s Cheques, Payable

At-par Cheques books, Funds Transfer, NEFT and RTGS.

2. Receipts/ Collections Solutions - Local & Payable At- par Cheque Clearing,Out – station Cheque

Collection,

3. Cash Transactions – Free Cash Deposits at Home Branch Location

4. Home Banking
5. ActivMoney - Interest is paid on these as per the no. of days for which these actually remain as TD!

For earning any interest, a swept out TD < 15 lakhs should remain for a min of 15 days & for

a swept out TD > or = 15 lakhs, it should remain in for a min of 7 days, as per RBI.

6. Charges Reversal Offer (Only for NEO Current Account)- For accounts that maintain an

average bal of Rs. 25,000 or more, over the term of the account, in a financial year, 50% of

all charges levied for the services & transactions availed during the year, shall be reversed

centrally at the end of each financial year.

Reversals capped at a max. limit of Rs. 1000 p.a. NMC charges excluded. Account should be

open at the end of the financial year & should not be in TOD/ Dormancy.

7. Credit – Access - Unsecured overdraft facility upto 3.5 times of AQB maintained (max. Rs

10 Lakhs) offered to firms >3 yrs old; subject to approvals.

8. K–Value - Unsecured OD offered to firms >3 yrs old. No hypothecation of stocks etc.

involved but financials like balance sheet, P&L statement, bank account statement needed.

Credit is given upon successful account performance over the first 6 months of account

opening, subject to approvals.

Credit limits upto a max. limit of Rs 50 Lakhs.

9. OD against TD

10. Phone Banking and Net Banking

11. Web Pay - A highly secured Internet based Banking system to transfer the funds from

customer’s account to the Beneficiary accounts maintained with Kotak Mahindra Bank from

anywhere and anytime. Customer can make periodic payments like salaries, reimbursements,

vendor payments, service charges etc. automatically through multiple account fund transfers

through file upload

facility.

12. Visa Money Transfer for Credit Card Payments & Funds Transfer

13. E Tax – Online Payment of Direct Taxes

14. Trade & Forex Services

CURRENT ACCOUNTS OFFERED

1. Neo Current Account.

2. Edge Current Account.

3. Pro Current Account.

4. Elite Current Account. 5. Ace Current Account.

CHAPTER 3 : DISCUSSIONS ON TRAINING

( 3.1 ) SUDENTS WORK PROFILE , TOOLS AND TECHINIQUES USED .

Taking LMS

My summer training of 2 months has been a complete learning experience , When I joined this

esteemed organization , my organization guide told me to take the inhouse examinations which

all employees of Kotak Mahindra Bank have to compulsorily undergo within the first 9 months

of joining the organization . These are conducted on the computer system and we can take them

at any time convenient to us . These exams

are known as LMS which means LEARNING MANAGEMENT SYSTEM .

LMS consists of about 100 papers which covers all aspects of banking . For every exam paper ,

study material is available in the form of powerpoint presentations and and word dpcuments .

These are available of the intranet of the company . We just need to log in with our specific

employee id and password , refer to the material , study and appear for the exam .

Making Service Calls

It is a common practice in banks to sell products and services and never look back thereafter . Since all

salesmen are always chasing their monthly targets , taking out time to talk to their existing clients and

understanding any current need or any other problems with respect to the products and services of the

bank , is often rare . I capitalized on this opportunity . I took the data of 500 clients or more from my

fellow colleagues and made service calls to all the clients .

In these calls , I thanked the customer for being a member of the Kotak family and then resolved any

issues and complaints that they were facing . This not only widened my horizon in terms of

understanding products and services better but also gave me a lot of satisfaction each time I could help

someone .

Marketing and Selling of CASA and other products

Since no organization can survive without making profits and profit is only made after doing sales , I

had to perform the same role . I made tele- calls to customers ie. Both existing and non-existing and

persuaded and convinced them to buy the company’s products . Although 80 % prospects don’t even

bother to hear you , I had to struggle with the other 20 % .

I was happy to sell 3 savings account , one demat / trading account and one term deposit . I received

much appreciation for the same .

Other Operational Activities

At times my boss would give me some routine operational tasks to perform such as entering

data , tallying it etc ,

 ( 3.2 ) KEY LEARNINGS

From these 2 months training , I learnt the following :

1. I read extensively about many topics since I had to appear for LMS . This increased my knowledge

base manifolds.
2.

Since I made service calls to clients , I became aware of the different

kinds of problems faced by clients and also understood the method of
getting it resolved .

3.
While marketing and pitching company products , I got aware of the
various offerings by the bank and also learnt the effective ways of
converting a prospect into a lead .

4.
The daily operational activities taught me how to use the different
softwares and applications in a computer .
 Observation about my co-colleagues and their working style also made me aware

of a lot of things . As they say – “ ACTIONS SPEAK LOUDER THAN

WORDS ” .

CHAPTER 4 : STUDY OF SELECTED RESEARCH PROBLEMS

( 4.1 ) STATEMENT OF RESEARCH PROBLEM

To make a comparative analysis of the various current accounts and savings

accounts of Kotak Mahindra Bank and HDFC Bank .

51

( 4.2 ) STATEMENT OF RESEARCH OBJECTIVES

To understand the differences in customer preferences while choosing savings account and current

account between Kotak Mahindra Bank and HDFC Bank.

To suggest changes that could be adopted by both the banks.

( 4.3 ) RESEARCH DESIGN AND METHODOLOGY

Research Design
Area of study

The study has been carried out for the customers of Kotak Mahindra and HDFC banks in New Delhi,

India

Sources of data

Primary data has been collected by handing out questionnaires to customers of Kotak Mahindra and

HDFC banks. The study has also used secondary data obtained from RBI annual reports.

Sampling technique

Simple random sampling technique has been used to generate a sample of customers of Kotak

Mahindra and HDFC banks.

Sample size

100 questionnaires were handed out randomly to respondents of which 88 held accounts in either Kotak

Mahindra or HDFC banks. The remaining 12 respondents held accounts in other banks and therefore

their preferences became irrelevant to the study. Hence the sample size for the study is 88.

Tools for the study

To study the differences in the performance of Kotak Mahindra and HDFC banks, the questionnaire was

used as a tool to analyse the customer preferences of both the accounts .

 CHAPTER 5 : ANALYSIS

( 5.1 ) ANALYSIS OF DATA

SWOT analysis of Kotak Mahindra Bank

STRENGTHS:

Capital markets franchise

Professional management

Strong technology

Strong capital structure

Construction equipment financing business

Comprehensive cash management system

Capturing supply chain businesses

NPA is at 1.30%, Total Deposits Rs15, 645 crore, Net Advances Rs16, 625 crore,
Capital Adequacy Ratio 16%.

WEAKNESS:

Wholesale Funding Costs Late comer in

the industry

Less Promotional Activities

OPPORTUNITIES:

Low loan and retail penetration

Stressed Asset Business

Mass Banking

THREATS:

Capital Market slow-down

Competition

Rising Rates

Other better saving, investment option available (like Insurance, Mutual fund,

Realestate, Gold)

Brand value of competitors is stronger.

SWOT analysis of HDFC Bank

STRENGTHS

Right strategy for the right products.

Superior customer service vs. competitors.

Great Brand Image.

Products have required accreditation.

High degree of customer satisfaction.

Good place to work

Lower response time with efficient and effective service.

Dedicated workforce aiming at making a long-term career in the field.

WEAKNESSES

Some gaps in range for certain sectors.

Customer service staff needs training.

Processes and systems are weak.

Management cover is insufficient.

Sect oral growth is constrained by low unemployment levels and competitive staff.

OPPORTUNITIES

Profit margins trends are positive in next five years.

Bank could extend to overseas aggressively.

Introduction of new engineered products and better service applications by the bank.

Could seek better customer deals.

Fast-track career development opportunities for employees on an industry-wide basis. An

applied research center to create opportunities for developing techniques to provide added-value

services.

THREATS

Legislation could impact.

Great risk involved

Very high competition prevailing in the industry.

Vulnerable to reactive attack by major competitors.

Lack of infrastructure in rural areas could constrain investment.

High volume/low cost market is intensely competitive.

 ( 5.2 ) SUMMARY OF FINDINGS

1. Distribution of different types of accounts held by the customers of Kotak

Mahindra and HDFC Banks.

The results of the data collected show that there is no difference in the types of accounts that are

held in the two banks. Out of 44 respondents of Kotak Mahindra Bank 33 respondents have a

savings account which is similar to the data of HDFC

Bank.
2. Distribution of different types of savings accounts held by the customers of Kotak Mahindra and

HDFC Banks.

In both the banks customer preference is more towards availing a lower AQB account. In case of Kotak

Bank 30 out of 44 respondents availed Edge account (the lowest level account offered). This again

highlights that Kotak Mahindra Bank can capitalize on the opportunity to convert these account holders

into Ace or Pro account holders by educating them of the additional benefits available with these

accounts.

3. Distribution of different types of current accounts held by the customers of Kotak Mahindra and

HDFC Banks.

The graph highlights that in HDFC Bank there is more number of customers using higher end current

account product than Kotak Mahindra Bank customers. In Kotak Mahindra Bank there are more users

of Edge Current Account than Ace or Pro account.

Thus there lies an opportunity for Kotak Bank to lure the customers to adopt

Ace or Pro current accounts.

4. Distribution of income (per month) earned by the customers of Kotak Mahindra Bank and HDFC

Bank.

The income reported by the respondents of the two banks is similar. The difference in the type of

customers of the two banks lies in the fact that Kotak Mahindra Bank has customers whose

income per month is greater than Rs. 1 lac. However out of 44 respondents of HDFC Bank no

one had an income level greater than Rs. 1 lac.

5. Distribution of waiting time experienced by the respondents of Kotak Mahindra Bank and HDFC

Bank in respective bank branches.

The data shows that 75% of the customers of Kotak Mahindra Bank have to wait less than ten minutes

for their transaction to process. Only 25% of respondents have to wait for more than ten minutes.

However in case of HDFC Bank 75% of the respondents have to wait for more than ten minutes for

their transaction to process. This highlights the efficiency of Kotak Mahindra Bank in providing

quicker services to its customers.

6. Accessibility of bank branches

Out of 44 respondents of HDFC Bank 38 respondents feel that the branches of HDFC bank are easily

accessible to them. Only 13% customers of HDFC Bank feel that the bank branches are not easily

accessible. However in case of Kotak Mahindra Bank 31% of the respondents feel that branches of the

bank are not easily accessible. This implies that there is a need to increase the number of branches

for Kotak Mahindra Bank. 7. Accessibility of ATMs

Out of 44 respondents of HDFC Bank 9% customers of HDFC Bank feel that the bank ATM is not

easily accessible. However in case of Kotak Mahindra Bank 31% of the respondents feel that ATM of

the bank is not easily accessible. Chi – Square test was conducted for the sample data of 88 respondents

to see whether there is a significant difference in the accessibility of ATMs by the customers of

Kotak Mahindra Bank and HDFC bank.

8. Distribution of preferred modes of banking by customers of Kotak Mahindra Bank and

HDFC Bank.
The respondents of HDFC bank view both net banking and branch banking modes of banking as equal.

However more respondents of Kotak Mahindra Bank prefer branch banking than net banking.

Kotak Mahindra Bank could take measures to improve and promote net banking and educate its

customers about net banking to improve its performance. This is also important because respondents

feel that the branches of Kotak bank are not easily accessible. Thus to expand its customer base Kotak

can focus to help customer adopt net banking mode.

9. Distribution of preference of customers for change in bank working hours of Kotak Mahindra

Bank and HDFC Bank.

Of the total 44 respondents of Kotak Mahindra Bank 68% of the respondents feel that the bank should

increase its working hours. Only 32% of the respondents feel that there is no need of increasing the

working hours of the bank. Chi – Square test was conducted for the sample data of 88 respondents to

see whether there is a significant difference felt in the need to increase the working hours by the

customers of Kotak Mahindra Bank and HDFC bank.

10. Distribution of waiting time experienced by the respondents of Kotak Mahindra

Bank and HDFC Bank in respective ATMs.

The data shows that approximately 75% of the customers of Kotak Mahindra Bank have to wait

less than five minutes for their transaction to process. Only 27% of respondents have to wait for

more than five minutes. However in case of HDFC Bank 61% of the respondents have to wait

for more than five minutes for their transaction o process.

11. Receiving timely information regarding account

70% respondents of Kotak Mahindra Bank feel that they receive information regarding their accounts

by the bank within proper time. Only 15% of the respondents of the bank feel that they do not receive

timely information from the bank. However the data collected from HDFC bank shows that 52%

respondents feel they receive timely information whereas 47% respondents felt that they do not receive

updates of information timely. This suggests that Kotak Bank provides better services than HDFC

Bank.

12. Distribution of average monthly balance maintained by the customers of

Kotak Mahindra Bank and HDFC Bank

In both the banks maximum number of respondents keep an average monthly balance of less than Rs.

25000 in their account.

13. Distribution of level of satisfaction experiences by the customers of the Kotak Mahindra Bank and

HDFC Bank.

More than half of the respondents of HDFC Bank feel that they are not satisfied with the bank.

On the other hand only 34% of the customers of Kotak bank feel that they are not satisfied

with the bank. This clearly highlights the efficiency of Kotak Mahindra Bank in keeping its

customers satisfied.

14. Distribution of level of satisfaction experienced by the customers of the Kotak Mahindra

Bank and HDFC Bank with respect to the knowledge of bank employees.

The data reveals that 93% of the customers of Kotak Mahindra Bank feel that the bank

employees are have knowledge to satisfy their queries.

CHAPTER 6 : SUMMARY AND CONCLUSIONS
 ( 6.1 ) SUMMARY OF LEARNING EXPERIENCE

From these 2 months training , I learnt the following :

I read extensively about many topics since I had to appear for LMS . This
increased my knowledge base manifolds.

Since I made service calls to clients , I became aware of the different kinds
of problems faced by clients and also understood the method of getting it
resolved .

While marketing and pitching company products , I got aware of the various
offerings by the bank and also learnt the effective ways of converting a
prospect into a lead .

The daily operational activities taught me how to use the different softwares
and applications in a computer .
 Observation about my co-colleagues and their working style also made me

aware of a lot of things . As they say – “ ACTIONS SPEAK LOUDER THAN

WORDS ” .

( 6.2 ) CONCLUSIONS AND RECOMMENDATIONS

63

Suggestion for the HDFC BANK

HDFC must focus on the quality of service they are providing thus resulting into reduction in

service gaps.

Should work on improvement of the Banking Process and Systems for the Growth.

HDFC must look forward toward hiring of competent staff to provide quality services.

Must gives Sufficient time for the effective Services.

Must use Strong Capital Structure for the Capital Growth.

Suggestion for the KOTAK MAHINDRA BANK.

Arrangement of more & more motivational Activities for the Staff to achieve the Target.

Must appoint the active employees in the Bank for the Fast Working Process.

Use the Customer reference to make the many Bank Customer.

Using the right Strategy for increase the Sales for the Product. Must provide the high degree of

Customer Satisfaction According to the Demand.

Open more Kotak ATM outlets for the Customers.

Improving the Loan Policies/Plans of the Growth of the Bank.

APPENDIX
 QUESTIONNAIRE

Dear Respondent, I am Ashna Kalra , student of Global school of Business, New Dehli. I request you to
please fill this questionnaire. I assure you that information shared will be kept confidential. Name
_________________________ E -mail Address __________________________ Location
_________________________ Contact No. __________________________

1. With which bank do you hold an account?

Kotak Mahindra Bank HDFC Bank Others ________________

2. Which type of account do you operate in your bank?

Current Account Savings Account Both

Please indicate your Income per month <25 K 25 – 50 K 50 –
1L 1L – 2L >2L

If you bank with Kotak Mahindra, proceed to question 3, else proceed to question 6.
3. Which Current Account do you hold with Kotak Mahindra Bank?
Ace Elite Pro Edge Neo

4. Which Savings Account do you hold with Kotak Mahindra Bank?

Ace Pro Edge

5. Rate (on a scale of 10) the following bank services offered by Kotak Mahindra Bank that you
find most useful.(Please do not give same ratings to any of the two services)

Active Money facility in savings account

Zero balance family account offer for Pro savings account holders
Wealth statements offered
Net card facility
Cheques pick up and drop facility
NEFT and RTGS facilities provided
Advance payment offer for Demat account holders Proceed to question 9.
6. Which Current Account do you hold with HDFC Bank?
Apex Max Plus Flexi Trade

7. Which Savings Account do you hold with HDFC Bank?

Premium Regular
8. Rate (on a scale of 10) the following bank services offered by HDFC Bank that you find most
useful.(Please do not give same ratings to any of the two services)

Opening Account even with NIL initial payment

Fastest NEFT and RTGS facilities provided
ATM availability after every 500 meters
Credit card offered with savings account ( limit Rs 75000)
9. Please rank (on a scale of 1 to 10; 1 being the lowest) the factors that you consider before
opening an account in a bank.

Accessibility to bank
Minimum Balance required to be maintained
DD/ pay order services
Free Cheques facility
Cheques pick up and drop facility (home banking)
Net banking and Mobile Banking facilities available
NEFT and RTGS facilities provided
No. of ATM of the bank
 Customer relationship services
10. Are your bank branches easily accessible to you?
 Yes No
11. Are your bank ATM easily accessible to you?

Yes No
12. Which modes of banking do you prefer more?

Net banking Branch Banking Do you feel

13. employees of your bank have proper knowledge to satisfy your queries?

Very good Good Average Poor Very poor

14. Do you feel your bank should increase its working hours till late evenings.

Yes No How long do you have to wait in your

15. bank’s branch for your transaction to process?

< 10 min 10 to 30 min >30 min

16. How long do you have to wait in your bank’s ATM (Queue time)?

< 5 min 5 to 15 min >15 min

17. Are you provided with all the timely information you require from your bank?

Yes No Sometimes
 18. What is the average monthly balance you maintain in your account?

< 25000 25-50000 50-100000 1-150000 1.5- 200000

19. >250000 Are you satisfied with the banking services provided to you?

Satisfied Average Needs Improvement

20. Which additional banking service do you feel your bank should provide?

_____________________________________________________________
 BIBLIOGRAPHY

Philip kotler Marketing Management

C.B. Gupta Business Organization and

Management

Internet www.google.co.in

www.kotak.com

www.bis.org .

www.moneycontrol.com
0
 BIBLIOGRAPHY

Philip kotler Marketing Management

C.B. Gupta Business Organization and

Management

Internet www.google.co.in

www.kotak.com

www.bis.org

www.hdfcbank.com

www.moneycontrol.com

http://papers.ssrn.com
.