Comparative Analysis of Private Sector Bank

A Project Report On Comparative Analysis of  Private Sector Bank on Basis of  Current Account, Saving Account & Fixed Deposit

CONTENTS 1 CHAPTER-1

INTRODUCTION

Scope of the study Research Objectives & Hypothesis 2 CHAPTER-2

ORGANIZATION PROFILE

A Brief profile of the industry Detailed profile of the Company 3 CHAPTER-3

METHODOLOGY

Research design Sampling Method and tool of data collection Data analysis and Hypothesis Testing 4 CHAPTER-4

ANALYSIS OF DATA

5 CHAPTER-5 .

INTERPRETATIONS INTERPRETATION S & FINDINGS

6.

CHAPTER-6

BIBLIOGRAPHY BIBLIOGRAPHY & ANNEXURES

CHAPTER-І

INTRODUCTIO

Introduction Banks are the most significant players in the Indian financial market. They are the biggest   purvey purveyors ors of credit credit,, and they they also also attrac attractt most most of the saving savingss from from the populat population ion.. Dominated by public sector, the banking industry has so far acted as an efficient partner  in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development. The Indian banking can be broadly categorized into nationalized (government owned),   private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to  become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and   proa proact ctiv ivee play player erss capa capabl blee of meet meetin ing g the the mult multif ifar ario ious us requi require reme ment ntss of the the larg largee

customer’s base. Private Banks have been fast on the uptake and are reorienting their  strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive proactive and dynamic dynamic entity. entity. This transform transformation ation has been largely largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing borrowing and lending). The banking in India is is highly fragmented fragmented with 30   bankin banking g units units contribu contributin ting g to almost almost 50% of deposi deposits ts and 60% of advance advances. s. Indian Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which a ssures them high

deposit deposit mobilization. mobilization. The Indian banking can be broadly broadly categorized categorized into nationalized, nationalized,  private banks and specialized banking institutions. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming shortcoming in the system. system. It is the foremost monitori monitoring ng body in the Indian financial financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate dominate the Indian banking banking arena. Industry Industry estimates estimates indicate indicate that out of 274 commercial commercial banks operating in India, 223 banks are in the the public sector and 51 are in the private sector. The  private sector bank grid also includes 24 foreign banks that have started their operations here. The liberalize policy of Government of India permitted entry to private sector in the  banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always centered around the customer – understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide   portfolio of products and services. These banks have generally been established by  promoters of repute or by ‘high value’ domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these   banks banks have gained gained conside considerab rable le custom customer er confid confidence ence and consequ consequent ently ly have have shown shown impressive impressive growth growth rates. Today, Today, the private banks corner almost almost four per cent share of  the total share share of deposits. Most of the banks in this category category are concentrated concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total  banking business). With efficiency efficiency being the major focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio portfolio have a reputation reputation of    bein being g nich nichee play player erss in the the indu indust stry ry.. A stra strate tegy gy that that has has allo allowe wed d thes thesee banks banks to

concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates integrates strategy plans have allowed most of  these banks to deliver superlative superlative levels of personalized services. With the Reserve Bank  of India allowing these banks to operate 70% of their businesses in urban areas, this statutory requirement has translated into lower deposit mobilization costs and higher  margins relative to public sector banks.

Scope of the study As curren currentt market market place place is highly highly competiti competitive ve and each each corpor corporate ate is expandi expanding ng its  business round the globe for its global presence so they do study related to market trend regarding to their market share in comparison to their competitors. This study is carried out to find out the market share of Kotak Mahindra Bank and also compare it with different Private sector banks. For this analysis of the sales trend of Financial product ,ie Saving a\c , Current a\c & Fixed Deposits Deposits has completed in Lucknow city. This study study is confined confined to some of the areas like Hazratganj, Hazratganj, Gomti Nagar, Indira nagar, Rajajipuram, Rajajipuram, Chowk, Latoche Road, Haider Ganj and Aminabad etc of Lucknow city.

Significance of the study This study is helpful to find out the strengths and the weakness of their deposits and mobilization schemes of bank and how to overcome its weakness. This study provides useful inputs to find out the current position of Kotak Mahindra Bank in comparison to its competitors.

Objectives of Study The objectives of undergoing study are as follows; 1. 2.

Study and analyze the market share of financial products of different banks. Possible improvements to be brought in for the dev elopment of their future  business.

Hypothesis of Study For these objectives some of the hypothesizes have been framed which are given below; Hypothesis 1; H0: There is significant relation relation between customer preference and bank’s financial financial  products. H1: There is no significant relation between customer preference and bank’s financial  products.

Hypothesis 2; H0: There is significant relation between bank’s financial products and business development. H1: There is no significant relation between bank’s financial products and business development.

Literature Review There has been significant growth in both private bank and public sector banks in past 10 years. The main function of commercial commercial banks is to mobilize deposit from the the public for  the purpose of deploying them profitably by way of advances and investment. The Deposits are therefore their raw material which they collect from public through variou variouss deposit deposit mobili mobilizat zation ion scheme schemess and lend lend the same same to indivi individua duals, ls, busine business ss enter enterpr pris ises es and and bodie bodiess corp corpor orat atee thro throug ugh h thei theirr vari variou ouss lendi lending ng and inves investm tmen entt schemes/products. The The diff differ erenc encee betwe between en the the cost cost of depos deposit itss and the the earn earnin ings gs on advan advance cess and and investments determines their profit margins and profitability of banks. Bank deposits: The bank deposits are generally classified as Demand deposits • Savings deposit • Term deposits • Demand deposits: demand deposits are mainly current account wherein the account holder can deposit and withdraw any amount at any time without restricting the number of transactions on any day /time.

Current account: In this type of account person can deposit there money any time and can withdrew it anytime. In this kind of account no Interest is paid. Moreover some banks charge /take service charges for providing the facility. This type of account is mostly opened  by the Business community. Saving account: In this type of account account holder can deposit its money any time but cannot withdrew the same as in current account, he cannot withdrew before certain period of  time. In these type of account rate of Interest is nominal generally 4 percent moreover  the rate of interest given for the deposit of the account holder is calculated on the minimum balance the account holder had in his account from 12th to last day of the  particular month but rate is low when compared to rate of Interest in Term deposit. Term deposit: In this type of account person deposit it money for certain period of time say for a year and he generally cannot withdraw it before completion of that period.

If the current account or saving account for a bank is less then it means its cost of  deposit deposit is is more where whereas as those those banks banks who maint maintain ain a balance balance in all these these three three accounts accounts (i.e. current current account , saving saving account , time deposit) deposit) it means that that they  balance to maintain a good go od profitability and minimum cost of borrowing Earlier the rate of interest on deposits was regulated but now they are not. There has been a proper balance between demand deposit (i.e. current and saving deposit) and time deposit and thus for this purpose banks prepare ALPM i.e. assets liability planning and management..

 Scheme of Dissertation

This study has been carried out to find out “ COMPARATIVE STUDY OF PRIVATE SECTOR BANKS REGARDING CURRENT A\C , SAVING A\C & FIXED For this this marke markett resea research rch of some some areas areas of Luck Lucknow now has been been DEPOSIT”. For completed. The scheme comprises of finding out the market share/sales trend of  different financial products of Kotak Mahindra Bank n in comparison to some other Private Bank like ICICI , HDFC . Sample size of 100 is taken . For the objectives of this whole study hypothesis have been designed for testing with the use of statistical tools like Chi-square and software like SPSS. The layout of the dissertation is as follows;  Introduction: Introduction gives a brief idea about Banking industry, scope of study,  significance of study, objectives, hypothesis and literature review part related to  Banks and there Financial Products . Organization Profile: This part comprises of industry profile and company profile. This  part give a brief idea about current trends in industry and company.  Research methodology: This part give an idea about research design, sample size/design and method of data collection.  Analysis and Interpretations: This part tells about data analysis, method carried out for  data analysis and interpretations from the analysis part.   Discussions Discussions and Recommendati Recommendations ons: This part gives an idea about some inputs to explore some other parts of research for further studies and tells about which part  is necessary for more focussed research.  Bibliography and Annexure: This part comprises comprises of references references taken for this study and  questionnaire which was framed for this study.

CHAPTER-ІІ

ORGANIZATIO PROFILE

Industry Profile BANKING SECTOR IN INDIA Introduction

The liberalization brought in 1991 has swept the economic landscape of the country. The automobile industry is one of the invisible faces of liberalization .For the   people who were used to many years of Ambassador cars with various models not different in anyway except a few changes in every model, the arrival of Maruti heralded the beginning of a new experience in automobile comfort. It was the same with Bajaj Chetak. Its obnoxious horn and the tilt and start symbolized the deplorable technology to which an Indian consumer was treated. We are thus living in the era of change. Banking sector is no different. The changes in banking in the last decade are unparalleled when compared to the entire period of banking history in India. Profitability, which which rema remain ined ed a tabo taboo o for for banke bankers rs for for year yearss since since inde indepe pende ndenc nce, e, has has beco become me a  buzzword today. Our banks modeled on British banks, which erected awesome building to scare the public in the garb of being a sentinel of public money, today go for boutique  banking to be as close to public as possible. Thus, competition fuelled by technology drives banking today. It is becoming increasingly clear that ' Technology ' alone can make  bankers sail through the competition. Computerization of branches, introduction of cash management products, remote access login for corporates, Banking Company is defined as “a company, which transacts the business of banking in India . The Banking Regulation Act defines the business of banking by stating the essential functions of a  banker .It also states the various other businesses a banking company may be engaged in and prohibits certain businesses to be performed by it.”mobile banking, Internet banking and ATM banking are a few ways by which bankers use technology today to beat the competition.

BANKING SYSTEM IN INDIA

Apex Banking Institutions

Agricultural Refinance & Development Corporation

Industrial Development Bank 

Reserve Bank Of  India

ExportImport Bank of  India

Banking Institutions

Commercial Banks

Regional Rural Banks

Co-operative Banks

Industrial Land Development Development Banks Banks

State Co-operative Banks Foreign Commercial Banks

Indian Commercial Banks

State Land Development Banks Central/District Co-operative Bank 

Private Sector Banks

Public Sector  Banks

Primary Land Development Banks

Primary Credit Societies State Bank  Group

 Nationalized Banks All India

State Bank of  India

Subsidiary Banks

IFCI

IRC

State

ICICI SFC s

SID Cs

SERVICES RENDERED IN INDIA

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Administration of  Personal Estates.

Business Services

Private Trusts Personal Service Investment Services

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Merchant Banking.

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Company Registration& Computer Service

Unit Trusts •

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Life Assurance Insurance Broking Credit Cards

Leasing& Industrial Hire Purchase.

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Factoring

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Corporate Trusteeships.

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Business Advisory Services

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Offshore Services

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Foreign Trade

Hire Purchase Personal Advisory

Money & Travel (Open credit abroad, overseas  payment, Telegraphic transfers, Post cheques, Traveler’s cheques.) •

Ancillary services

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Life Insurance

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Unit Trusts

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Insurance Services

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Travel Services.

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Mail Transfer 

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Telegraphic Transfers

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Bank Drafts.

TYPES OF BANK 

PRIVATE BANKS

SCHEDULE BANKS

COMMERCIAL BANKS

 BANKS  CO-OPERATIVE BANKS

FOREIGN BANKS

INDUSTRIAL BANKS

5 DIMENSIONS OF SERVICES

There are many reasons why a customer should be given QUALITY SERVICES. The most of them are: 1. Industry Industry being being so competit competitive ive that a customer customer should should be given given the best servic services es as they have many competitors (the company) and if even a single customer is lost in today’s JLT world then it very difficult to win back the customer. 2. Most Most of the custome customers rs do not complai complain n as they just just opt out and do get satisf satisfied ied with better services elsewhere. When it comes to services, there are 10 quality dimensions. Each of the dimensions is of  utmost importance since human element is involved and it relates to services. But Zeithaml, Bitner and Parsuraman have developed a new and concise model  by clubbing some points. This model consists of the following dimensions:

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Reliability

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Assurance

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Tangibility

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Empathy

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Responsiveness

RELIABILITY

RESPONSIVENESS

ASSURANCE

EMPATHY

TANGIBILITY

RELIABILITY It is define defined d as the ability ability to perfor perform m the promis promised ed servic servicee dependa dependably bly and accurat accurately ely.. In its its broades broadestt sense, sense, reliab reliabili ility ty means means that that the compan company y delive delivers rs on its its  promises–promises about delivery, service provision, problem resolution, and pricing. It is also known as the “No Excuses” service delivery. Indian Overseas Bank faces stiff competition from many other banks within its vicinity and some of these banks are foreign banks. But the existing customers have faith, loyalty and trust in this bank. The customers are well aware that the bank will provide them back the best and reliable services. For e.g., no person likes to wait to withdraw his/her money. In order to correct this this probl problem em,, Indi Indian an Over Overse seas as Bank Bank has has ensur ensured ed that that whoe whoeve verr come comess in for for cash cash withdrawal will receive his/her cash within five to ten minutes.

ASSURANCE Assurance is defined as employee’s knowledge and courtesy and the ability of the firm and its employees to inspire trust and confidence. It includes the ability, knowledge, genuineness, and honesty to provide the best services to the customer from the frontline staff. In this dimension the front line staff is more important rather than the owner. At Indian Overseas Bank, every customer who comes is treated with utmost care and any problem that takes place is solved with great enthusiasm. It assures the customers coming up to the bank b ank that the money they invest is secure; the interest rate that is being  provided to them is at par or sometimes even higher as compared to other banks. Also, it assures the customers that the money they have invested will be returned to them as and when required with proper interest. It tries to empower their customer contact people and regularly train them in skills to build trust and loyalty between employees and the customers. They have assigned some of their staff members to build relationships with the customers  by getting to know them personally.

TANGIBLITY Tangib Tangibles les are define defined d as the appear appearanc ances es of physic physical al facili facilitie ties, s, equipm equipment ents, s,  personnel and communication materials. All of these provide physical representations or  images of the service that customers, particularly new customers, will use to evaluate quality. At Indian Indian Overse Overseas as Bank, Bank, the entire entire premis premisee is air-con air-condit dition ioned. ed. They They have computerized systems in place and therefore quick, accurate and efficient service can be   provi provided ded to the custom customers ers.. The tables tables and chairs chairs are conveni convenientl ently y locate located d for the customers. The personnel always have a cheerful and helping veneer and are always ready to help out the customers. The entire place is done up in bright colors and thus the customer can immediately feel the warmth and the radiance of the place.

EMPATHY Empath Empathy y is define defined d as the caring caring,, indivi individual dualized ized attent attention ion the firm firm provid provides es its customers. The essence of empathy is conveying, through personalized or customized service, the customers are unique and unique special. The empathy shown by the employees of the Indian Overseas Bank is good as they are always polite humble and helpful. There was a case where once a customer misplaced Rs. 1,00,000 within the premises of the bank. He panicked but the bank personnel put

him at rest and assured him that they would locate the same for him. Since he was a regular customer, they knew him very well and took the situation under control. They quickly located the cash and thus, the customer was plac was  placated. ated. The bank personnel went out of their way to help this customer and thus understood his predicament. This bank  regula regularly rly holds holds semina seminars rs and traini training ng workshops so that that they they can can unde unders rsta tand nd the the consumer better and thus serve him better.

RESPONSIVENESS Responsiveness is the willingness to help the customer and provide him with immediate and fast service. The The Indi Indian an Overs Oversea eass Bank Bank is prom prompt pt at prov provid idin ing g its its cust custom omer erss with with the the inform informati ation on and servic services es that that they they seek. seek. It is extrem extremely ely prompt when it comes comes to resolv resolving ing the compla complaint intss of the custom customers ers.. The custom customers ers,, in their their feedbac feedback k form, form, mentioned this as one of the most important factor that has prompted them to continue with this bank. All the five dimensions basically aim at serving the customers to the best of their  ability, giving them quality services and if things are followed as they are demanded, (i.e., according to the customers demand) then there would be no problems in facing any type of people. The successful service organizations set up speeds for service standards.

TRADITIONAL BANKING

Traditionally the relationship between bank and its customer has been on a oneto-one level via the branch network. This was put into operation with clearing and design making responsibilities at the individual branch level. The head office had the responsibility for the overall clearing network, the size of the branch network and the training of staff in the branch network. The branch monitored the organizations  performance and set the decision making parameters, but the information available to  both branch and their customers was limited to one geographical location.

Customer 

Customer 

Customer 

Bank Branch Clearing

Decision

Central clearing

Bank Branch Clearing

Bank Branch

Decision

Clearing

Central clearing

Traditional banking structure

Decision

RELATIONSHIP BANKING

The modern bank cannot rely on its branch network alone. Customers are now demandi demanding ng new, new, more more conveni convenient ent,, delive delivery ry syste systems. ms. And servic services es such such as intern internet et  banking have a dual role for the customer thus increasing the productivity of this sector. They provide traditional banking service, but additionally offer much greater access to information on their account and on the banks many other services. To do this banking has to create information layers, which can be accessed both by bank staff as well as by the customers themselves. Today banking in India has become an un popular industry, much blamed for its  problems of its own making. The use of interactive electronic links via the internet can go a long way in providing the customers with greater deal of information about both their  financial situation and about the services offered by the bank.

Customers

Telephone, Branch, Electronic Banking, etc .

Shared Information

Clearing systems

Head Office Risk   Monitoring

Company Profile

COMPANY The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited . This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak  & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that that's 's when when the the comp compan any y chang changed ed its its name name to Kota Kotak k Mahi Mahindr ndraa Fina Financ ncee Limited. Since then it's been a steady and confident journey to growth and success. 1986

Kotak  Mahind ra Finance Limited starts the activity of Bil Bill Discou nting 1987

Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

1990

The Auto Finance division is started

1991

The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks

1992

Enters the Funds Syndication sector 

1995

Brokerage and Distribution businesses incorporated into a separate company Kotak Securities. Securities. Investment Investment Banking Banking division division incorporate incorporated d into a separate separate company - Kotak Mahindra Capital Company

1996

The Auto Finance Business is hived off into a separate company - Kotak  Mahi Mahindr ndraa Prim Primee Limi Limite ted d (for (forme merl rly y known known as Kota Kotak k Mahi Mahind ndra ra Prim Primus us Limite Limited). d). Kotak Kotak Mahind Mahindra ra takes takes a signif significa icant nt stake stake in Ford Ford Credit Credit Kotak  Kotak  Mahi Mahindr ndraa Limi Limite ted, d, for for finan financi cing ng Ford Ford vehi vehicl cles es.. The The laun launch ch of Matr Matrix ix Inform Informati ation on Servic Services es Limite Limited d marks marks the Group' Group'ss entry entry into into inform informati ation on distribution.

1998

Enters Enters the mutual mutual fund market market with the launch of Kotak Kotak Mahind Mahindra ra Asset Asset Management Company.

2000

Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund.

2001

Matrix sold Launches Insurance Services

2003

Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so.

2004

Launches India Growth Fund, a private equity fund.

2005

Kotak Kotak Group Group realig realigns ns joint joint venture venture in Ford Ford Credit Credit;; Buys Buys Kotak Kotak Mahindr Mahindraa Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund

2006

Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

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Friday

Corporation

Journey so far

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, 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 corporate.

The group has a net worth of over Rs. 5,609 crore, employs around 17,100 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in New York, London, London, Dubai, Dubai, Maurit Mauritius ius and Singap Singapore ore.. The Group Group servic services es around around 3.6 million customer accounts. February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was In February 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 convert to a  bank.

Recently, Kotak Mahindra Bank Ltd and HDFC Bank have signed a Memorandum of  Understanding to share their ATM network. This agreement will give customers of the two banks access to over 1400 ATMs across the country. While HDFC Bank has 1335 ATMs across 228 locations in the country, Kotak Mahindra Bank has 75 ATMs at 41 locations, accessible 24 hours a day, 365 days a year. Kotak Mahindra Bank is offering access to HDFC Bank ATM network free of cost to most of its customers. The charges for HDFC Bank customer for using Kotak Mahindra's ATMs are Rs. 18 for Cash with withdr draw awal alss and and Rs. Rs. 7 for for Quer Queryy-ba base sed d tran transa sact ctio ions ns such such as bala balanc ncee enqu enquir iry. y.

Corporate Identity

Group Management Name Uday Kotak 

Title Age Executive Vice 48 Chairman, Managing Director, Chairman of   Nominations Committee, Chairman of Management Committee, Chairman of Committee of the Board of Directors, Chairman of Share Transfer and Routine Transaction Committee, Chairman of Credit Committee, Member of Investor  Relations (Shareholders/Investors Grievance) Committee, Member of Committee on Frauds, Member of  Customer Services Committee, Director of  Kotak Forex Brokerage Limited, Director of  Kotak Mahindra Primus Limited, Director of Kot Chengalath Jayaram Executive Director, 51 Member of Audit Committee, Member of   Nominations Committee, Member of  Management Committee, Member of  Committee of the Board of 

Dipak Gupta

Shivaji Dam

Directors,Member of  Investor Relations (Shareholders/Investors Grievance) Committee, Member of Share Transfer & Routine Transaction Committee, Member of  Committee on Frauds, Member of Credit Committee, Director of  Kotak Mahindra Asset Management Company Limited, Director of  Kotak Mahindra Primus Limited and Director of Kotak  Securities Limited Head of Retail 47 Business and Banking Operations, Executive Director, Member of  First Tier Audit Committee, Member of   Nominations Committee, Member of  Management Committee, Member of  Committee of the Board of Directors, Member of Investor  Relations (Shareholders/Investors Grievance) Committee, Member of Share Transfer and Routine Transaction Committee, Member of  Committee on Frauds, Member of Credit Committee, Member of  Customer Services Committee, Director of  Kotak Forex Brokerage Limited, Direct Director, Member of  50

Audit Committee, and Managing Director of  OM Kotak Mahindra Life Insurance Company Limited

Awards 2007 •

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Awarded the 10th Best Employer in the recently conducted Hewitt’s Best Employers in India 2007 Study Best Investment Bank in India by Finance Asia Most Popular Investor Relation Website for the Asia/Pacific Region conducted by IR Global Rankings Emerged winner in 16 categories in the Euromoney Private Banking Poll 2007, including the Best local Private Bank 

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“IT Team of the Year” award at the annual Banking Technology Awards 2006 Runner’s up in the “Best Payments Initiative” category at the annual Banking Technology Awards 2006 Kotak Securites was ranked The Most Customer Responsive Company for 2006 (Category - Financial Services) by Avaya Globalconnect Awarded the Best Domestic Investment Bank and the Best Equity House in The Asset Triple A Country Awards Awarded Voice of Customers Award for the Best Passenger Vehicle Finance Company in India in 2006 by Frost & Sullivan Winner in 33 categories in the Asiamoney Private Banking Poll 2006 including the Best Private Bank award in Southern Asia Ranked no. 1 in six categories in the Annual Euromoney Private Banking Survey Poll for 2006 for India Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2006 according to Prime Database Best Broker in India by Finance Asia Topped the Asiamoney 2006 Brokers Poll as the Best Local Broker  Adjudged the best Mutual Fund House in the NDTV Business Leadership Award 2006 Best Bond Fund Group over Three Years by Lipper Fund Awards India

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Ranked the best debt fund over 5 years by Lipper for the Kotak Bond Regular  Plan Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for the 'Kotak Bond Regular Plan'

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Ranked as the top mergers & acquisitions advisor in India in terms of the value of  mergers & acquisitions deals announced from January to Dece mber 2005, according to Bloomberg Topped the India Advisory Partners Indata League table in terms of the value of  deals announced for the calendar year 2005 Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2005 according to Prime Database Best Broker in India by Finance Asia Best Equity House in India by Euromoney

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Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2004 according to Prime Database Best Investment Bank in India by Global Finance India's Best Equity House in India by Finance Asia Best Equity House in India by Euromoney Best Equity House in India by Asiamoney Best India Equity House by IFR 

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Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity offerings in terms of the value of transactions completed during fiscal 2003, according to Prime Database Best Equity House in India by Euromoney

Products and Services

Saving Accounts

1. Edge Saving Account 2. Pro Saving Account 3. Classic Saving Account 4. Nova Saving Account 5. Ace Saving Account 6. Easy Saving Account Term Deposits Loans

1. Personal Loans 2. Home Loans 3. Home Loan Balance Transfer  4. Home Improvement Loans Cards

1. Gold Debit Card 2. Global Debit Card 3. Best Compliments Card 4. Netc@rd 5. Access India Card Investment Services

1. Demat 2. Mutual Funds 3. Insurance

4. Kotak Gold Eternity Convenience Banking

1. Net Banking 2. Mobile Banking 3. Payment Gateway 4. Phone Banking 5. ATM Banking 6. SMS Banking 7. Alerts

SAVING DEPOSITS Saving Bank Account Savings Bank Account as the very name suggests, are intended for savings for the future. The object is to save in small or big amounts from time to time. On opening an account with us, you get wide range of facilities as under in a totally Computerized Banking Environment. The facilities offered - : •

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Free 4 Cheque books per Calendar Year Free ATM Card Facility Tele-Banking & Fax-on-demand Facility

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D’Mat Facility

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Safe Deposit Lockers

Free Cheque Book Facility

An accountholder whose account is properly introduced and maintaining a minimum balance of Rs10000/- per month is given a Free cheque book.

Free ATM Card Facility When you open a savings account with us, you automatically get a free ATM card, which gives you instant access to your account across the  branches, 24 hours 365 days. Your ATM card gives you to conduct transactions such as cash withdrawal up to Rs 15000/-, Cash / Cheque Deposit, balance inquiry, last 5 transactions, PIN change etc. free of  Cost.

Tele-Banking & Fax–on-Demand Facility When you open an account at our branches , you can enjoy the benefits of  Tele-banking & Fax-on-demand facility. You will receive a PIN ( Personal Identification Number), which enables you to co ntact the  bank and conduct the following transactions on your own over the telephone: 1) Balance Inquiry 2) Last 5 Transaction 3) Cheque book Request 4) To record request for statement of account 5) To switch to your another account for information 6) To change PIN number. 7) To get the statement of Account on your Fax

D’Mat Facility On opening an account with us you can also avail D’mat facility for  dematerialization of shares and conduct transactions through D’Mat Account.

Interest Rate Interest on your savings account is 3.5 % p.a and is calculated on a monthly basis , based on the minimum balance in your account between the 10th and the last day of the month , and is credited to your savings  bank account at the end of every 6 months.

Eligibility Savings Bank accounts may be opened in the names of An Adult 1) Individual - single account / Joint account 2) Minors – operated upon by guardians natural or court appointed. 3) Illiterate persons – operated by thumb impression. 4) Trusts - Private or Public. 6) Credit / Housing Co-operative Societies 7) NRI /NRO

CURRENT DEPOSITS •

Current Account :

Current Accounts ,as distinguished from Savings Bank Accounts are active accounts opened mainly by members of business community trade , corporate bodies or professionals where the account holders have to receive money frequently and to make a number of payments during course of their business activities or profession. On opening a Current account with us ,you will receive much more than all the basic facilities you need to operate your business account.

The facilities offered - : •

Cheque book 

•

Any Branch Banking

•

Free ATM Card Facility

•

Tele-Banking & Fax-on-demand

•

D’Mat Facility

Cheque Book Facility All current accounts are invariably required to be introduced by some one known to and approved by the bank. An accountholder whose account is  properly introduced and maintaining a minimum balance of Rs 3000/- is given a cheque book facility.

Any Branch Banking

On opening a Current account we give the facility of Any Branch Banking at any of the branches , either on the ATM upto a limit of Rs. 15000 and across the counter upto a limit of Rs 25000/-

Free ATM Card Facility When you open a Current account as a sole proprietor, you are entitled to a free ATM card ,which gives you instant access to your account across the branches , 24 hours 365 days. Your ATM card gives you to conduct transactions such as cash withdrawal of Rs 15,000 /- , Cash or Cheque deposit , balance inquiries , last 5 transactions , PIN change etc. at free of  o f  cost.

Tele-Banking & Fax–on-Demand Facility When you open an account at our branches , you can enjoy the benefits of  Tele-banking & Fax-on-demand facility.You will receive a PIN( Personal Identification Number), which enables you to contact the bank and conduct the following transactions on your own over the telephone : 1) Balance Inquiry 2) Last 5 Transaction 3) Cheque book Request 4) To record request for statement of account 5) To switch to your another account for information 6) To change PIN number. 7) To get the statement of account on your Fax

TERM DEPOSITS As distinct from a Savings Bank deposit or Current Account deposit , a Term Deposit refers to a deposit kept for a predetermined definite period of time at an agreed rate of  interest.

Fixed Deposit (Q) which is ordinarily for a period of one year and upto 5 years in complete quarters and in multiples of Rs 10000 /- Interest is payable at Quarterly rests.

Services Offered :

TeleBanking : Tele-Banking & Fax on Demand Service We offer our customers Free Tele-Banking and Fax on Demand service to all our customers to carry out banking activities round the clock, everydayTele-Banking and fax on demand service offer wide range of transactions without ever entering the bank :

•

Latest Balance

•

Last 5 Transactions

•

Request for statement of Account

•

Cheque Book Request Change

•

PIN Change

•

Switch to your another Account

Latest Balance : You can Tele-Banking and Fax on Demand Service to know your latest  balance in your savings and current Accounts.

Last 5 Transactions : You can have the details of the last 5 transactions read out to you at the touch option .You can even have a mini account statement faxed to you.

Request for a statement of Account : You can request for a statement of accounts for a specific period to be mailed to you or you collect the same by coming to the branch.

Cheque Book Request : You can register a request for a new cheque book using telebanking facility. On registering for a new chequbook the same will be kept ready.

PIN Change : You have the option op tion to change your PIN (Personal Identification  Number) by touch of the button b utton and by sitting at your place.

Switch to another Account for Information : If you hold multiple accounts with us you have the option to switch  between the accounts to know your account details.

Any Branch Banking

1. Features res

This facility will enable our clients to withdraw money upto Rs. 25000/- across the counter counter or upto Rs. 15000 /- through through ATM from any of the branches. branches. Withdrawal Withdrawal of  Cash on ATM will be available round the clock.

2. Benefit fits Deposit Cash - You can deposit cash using any branch banking across the counter during business hours and will be credited to your account on the same day.

Transfer of Funds - You can transfer funds between your accounts accoun ts from one branch to another across the counter.

Mini-Statements - You can get a mini-statement for your last 5 transactions of your accounts by using ATM or across the counter. 3.

Eligibility

You can use the Any Branch Banking Facility if you are •

•

A savings Account holder with authority to operate the account in individual capacity. A current Account holder in individual Proprietorship or Partnership

4. Appl Applic icat atio ion n Proces Processs

•

Open a Savings or Current Account Fill up ATM Application form available at the branches.

•

ATM Banking

•

You can do banking business using ATM facility beyond our banking hours. So we have established a network of ATMs across the cities to give you the flexibility to access your  account 24 hours 365 days.At our ATMs, you can conduct the following transactions– 

•

Balance Enquiry

•

Cash Withdrawals

•

Statement of Account

•

Deposits

•

PIN Change

•

Transfer of Funds

Balance Enquiry You can use your ATM card to know your balance in the account.

Cash Withdrawals You can withdraw up to Rs 15,000/- per day on your ATM Card . You can also use the fast cash option , which allows you to withdraw money in mltiples of Rs 500 /-

Statement of Account You can request a statement of the last 5 transactions on your account .Your statement of account will be printed on the transaction slip.

Deposit Our ATMs enable you to deposit cash or cheques into your account at

any time. All you have to do is select the account onto which you want to make your deposit , fill out a deposit slip, put your cash or cheque into the envelope provided at the ATM, and insert it into the slot provided.

PIN Change Using your ATM to change your Personal Identification Number (PIN) assures you complete security. Your PIN number is not displayed on the screen, being replaced by crosses to ensure the secrecy of the transaction.

Transfer of Funds Our ATMs make transferring funds between two of your b ank accounts easy. All you have to do is select the account from which you want to transfer funds, then indicate the amount of money you want to transfer, and the account into which you want to make the transfer. Both accounts must be linked to your ATM Card.

Term Deposits for senior citizen •

Eligibility : A person who has completed the age of 60 years

may be treated as a senior citizen for getting the benefit under the scheme for senior citizens. •

Verification of Age : At the time of opening of a new deposit account of a senior citizen, the branch should satisfy about the age through verification of  any of the following documents:-

     

School Leaving Certificate LIC Policy Voters Identity Card Pension Payment order Birth Certificate issued by the competent authority Driving Licence / Ration Card

•

Account Opening Procedure

a) In sole name with nomination (nomination (nomination is mandatory) mandatory) or  In joint name styled ‘ Either or Survivor’ or ‘Former or Survivor’. The name of Senior Citizen should be in the first name •

Additional Facilities

 b) Free D’mat account with no annual maintenance charges of our Bank  c) Free issuance of our Bank’s pay order from Saving Bank Account of Senior  Citizen d) No Penalty for Pre-mature Withdrawal of Fixed Deposit e) 100% Loan facility to senior citizen against Fixed Fixed Deposit @ 1% interest interest over  fixed deposit rate

Balance Sheet Mar ' 07

Mar ' 06

Mar ' 05

Mar ' 04

Mar ' 03

326.16

309.29

123.32

59.53

59.21

Share application money

-

-

-

-

0.02

Preference share capital

-

-

-

-

-

1,335.77

555.30

633.61

546.78

482.24

Sources of funds Owner's fund

Equity share capital

Reserves & surplus

Loan funds

Secured loans

-

-

-

-

-

Unsecured loans

11,000.09

6,565.92

4,299.54

4,459.34

256.81

Total

12,662.02

7,430.51

5,056.48

5,065.65

798.27

273.57

205.28

168.57

134.46

113.95

-

-

-

-

-

Less : accumulated depreciation

132.48

100.05

71.47

49.20

34.16

Net block

141.09

105.23

97.10

85.26

79.79

-

-

-

-

-

6,861.96 6,

2,855.53

1,826.97

2,882.77

706.66

692.33

273.31

151.26

73.48

49.17

Less : current liabilities & provisions

2,153.65

1,135.38

470.89

239.67

213.98

Total net current assets

-1,461.32

-862.06

-319.63

-166.19

-164.81

-

-

-

-

-

5,541.73

2,098.69

1,604.45

2,801.84

621.64

Uses of funds Fixed assets

Gross block Less : revaluation reserve

Capital work-in-progress Investments

Net current assets Current assets, loans & advances

Miscellaneous expenses not written Total

Notes: Book value of unquoted investments

6,861.96

2,855.53

-

-

-

Market value of quoted investments

-

-

-

-

-

1,00,874.15

4,135.36

3,641.62

938.49

184.24

3261.56

3092.95

1233.24

595.33

592.13

Contingent liabilities Number of equity sharesoutstanding (Lacs)

Interest Rates: Interest rates on Fixed Deposits for Individual Borrowers Interest Rates on Deposits Matu Maturi rity ty Peri Period odss

Less Less than than Rs. Rs. 15 Lacs

7 - 14 Days

No Quote

Annu Annual alis ised ed Yiel Yield d Rs. Rs. 15 15 Lac Lacss and and Above But Below Rs. 1 Crore No Quote 4.50%

15 - 30 Days

4.00%

4.00%

5.00%

31 – 45 Days

5.00%

5.00%

5.50%

46 – 90 Days

5.50%

5.50%

6.25%

91 – 180 Days

6.50%

6.50%

7.25%

181 – 270 Days

7.50%

7.71%

7.50%

271 Days to less than 1 Year  1 Year & above  but less than 2 Year  2 Year & above  but less than 3 Year  3 Year & above  but less than 5 Year  5 Year & above upto and inclusive of 10 Year 

8.50%

8.77%

8.50%

9.25%

9.58%

9.25%

9.25%

9.58%

9.25%

9.25%

9.58%

9.25%

9.00%

9.31%

9.00%

Sees 82% growth in current and savings account deposits

Comparative Analysis of Current Account Features and Benefits of  Private Banks

Kotak  ICICI HDFC Banks Mahindra Monthly Rs.25,000 Rs.50,000 Rs.10,000 Average Balance

IDBI

AXIS

Free upto Rs 3 lacs  per month or40 transaction which ever is lower  Free upto 30 Free Rs 6 lacs  per Month

Rs 5 lacs  per  month

Rs 3 Lacs  No limit  per  month

Free upto Rs 5 lacs

Free upto Rs 3 lacs

Rs 130\ day

Rs 500\ day

Rs 825\day

 

Yes

NA

NA

NA

NA

Yes

Rs 30

Rs 500\ day

Rs 825\day

No limit Cash Deposits

Free , Demand Unlimited Drafts Yes , Free Cash Delivery

3 Lacs  per  month

STANDARD CHARTERED Rs.50,000 Rs.10,000 Rs.25,000

Beat Service Cheque Pick up

NA

NA

Free upto 2 per  day Rs 100

Daily Rs 1000| month Rs 100

Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank  Kotak  Mahindra Bank 

SAVINGS

CURRENT ACCOUNT

ACCOUNT

Edge Pro

Ac e

Edge

Pro

Ace

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

Yes

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

75,000

25,000

50,000

2,50,000

No

No

10,000 20,00 0

HDFC Bank 

Features

Saving Account

Current Account

and Ben efits Regular Saving

Saving No

Family Plus C

Regular Premium

Saving

Max

Frill

Saving

A/c

A/c

C A/c

A/c

Saving A/c

Yes

No

No

No

Plus

Account ATM Facility

Yes

Yes

Yes

A/c Yes

Mobile and

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

No

No

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

Yes

Yes

No

Yes

No

No

No

By mail

Monthly Yes

Qtly

Qty

Monthly Monthly Monthly

5000

10000

Nil

10000

100000

Net Banking ATM Facility International Debit Card Personalised Cheque Online Bill Pay Sweep in And Super Saver A/c Statement Facility AQB

25000

10000

400000

Comparative Analysis of Different Financial Products of Private Sector Bank Regarding Current A\c , Saving A\c

Banks

Current A\c

Saving A\c Comparative Analysis of  Minimum Balances of  Different Private Sector Bank  Regarding Current A\c , Saving A\c &

HDFC Bank

7

12

ICICI Bank

6

2

ING VSAYA

4

7

KOTAK  MAHINDRA

3

6

Current a\c minimum Deposit Rs. 10,000

Saving a\c minimum Deposit Rs. 5000

Rs. 25,000

Rs. 50,000

Rs. 10,000

Rs. 25,000

Rs. 10,000

Rs. 5000

Rs. 10,000

Rs. 25,000

Rs. 15,000

Rs. 50,000

Rs. 25,000

Rs. 10,000

Rs. 25,000

Fixed Deposit Banks

HDFC

ICICI Axis Standard Chartered Kotak  Mahindra

Fixed Deposit

Banks

Rate of Interest on Saving A\C

Kotak Mahindra

3.5%

Rate of Interest on Fixed Deposit(more Deposit(more than 1 years) 9.58 %

ICICI

2.25%

8.25%

ABN AMRO

3.5%

8%

HSBC

3.5%

7.5%

Standard Chartered

3.25%

6.5%

ING Vsaya

3.5%

9.5%

IDBI

3.5%

8.75%

Banks

Current & Saving Account (CASA) Deposits

Kotak Mahindra

2,248 cr

ICICI

63,781 cr

HDFC

54914 cr

Others

22612 cr

CHAPTER-ІІІ Research Methodology

Introduction: This study is carried out to find sales trend/potential of Kotak Mahindra Bank and its financial Products in Lucknow Luckno w city for this primary data has been collected  by conducting market survey.

Research Design: A descriptive research design is adopted for this study. Survey has  been conducted with the help of questionnaire to collect primary data. The data has been collected from retailers and doctors from some areas of Lucknow city such as Hazratganj, Aminabad, Chowk, Latouche Road, Haider Ganj, Rajajipuram, Gomti nagar and Indira  Nagar respectively. Regarding to this study some of the objectives were framed to find out the sales trend of Financial Product and Market share of Kotak Mahindra Bank in comparison with different other private sector banks. For fulfillment of objectives some hypothesis have been designed. Hypothesizes for this study are given below;

Hypothesis of Study For these objectives some of the hypothesizes have been framed which are given below; Hypothesis 1; H0: There is significant relation relation between customer preference and bank’s financial financial  products. H1: There is no significant relation between customer preference and bank’s financial  products.

Hypothesis 2; H0: There is significant relation between bank’s financial products and business development. H1: There is no significant relation between bank’s financial products and business development.

Sample Design: Hazratganj, Aminabad, Chowk, Latouche Road, Haider Ganj, Rajajipuram, Gomti nagar and Indira Nagar are some of the areas in Lucknow city which are taken for the study. On the basis of pilot study a sample size of 100 respondents have  been taken. Data Collection: Data is both of primary as well as secondary type. Many previous research papers, journals, business reviews forms the basis for secondary data. For the  purpose of primary data collection, a set of closed ended questions is designed whereby in depth interviews of the respondents are done.

Name of Banks

No of Respondents

Kotak Mahindra

50

HDFC

35

ICICI

30

Others

35

Fina Financ ncia iall pro prod ducts ucts

No of Resp Respon onde dent ntss

Saving

48

Current

25

Fixed Deposits

27

After data data collect collection ion the data analys analysis is is done by Data processi processing ng and analysis analysis:: After implem implement enting ing stati statisti stical cal tool tool named named Chi-sq Chi-squar uaree test. test. Chi-sq Chi-squar uaree test test is used used for the hypoth hypothesi esiss testi testing ng which which were were framed framed for fulfi fulfillm llment ent of object objective ivess of this this resear research ch  problem. The level of significance is 5% for hypothesis testing. Degree of freedom varies regarding to the table format in other words depends on no of column and rows. Apart from manual calculation, statistical software named SPSS is also used for the calculation  part. Limitations: Some of the limitations of this project are given below;

•

•

•

•

The research is limited limited to 150 people in some of the areas of Lucknow city. It is not accurate accurate data because it is collected collected from only few people from some of  the areas of Lucknow city. The people owe to there work were very busy and due to lack of time they have not given ample time for this study. Some of them did not entertain me for this  job. Some people shown non-cooperative behavior at the time of data collection for  this study.

•

Indian Banking System is the vast explanation

•

So I feel difficult to collect the data’s, which is related to my topics.

•

Shortage of time is yet another limitation of the study.

.

CHAPTER-ІV Data Analysis Inference

Name of Banks

No of Respondents

Kotak Mahindra

50

HDFC

35

ICICI

30

Others

35

Hypothesis Testing

Hypothesis testing is done by Chi-square test; χ 2 = ∑k  (Oi - Ei)2 i =1 Ei χ 2 = Chi-square, Oi = Observed Frequency, Ei = Expected Frequency, k = number of  categories

Degree of freedom = 3, Tabulated value at 5% level of significance = 7.815

Banks

Kotak

Observed (O) 50

Expected (E) 37.5

(O – E)

(O – E)²

(O – E)²\E

12.5

156.25

4.17

HDFC

35

37.5

- 2. 5

6.25

0.17

ICICI

30

37.5

-7.5

56.25

1. 5

Others

35

37.5

-2.5

6.25

0.17

Calculated Chi-square value( χ 2 ) = 6.01

Inference

The calculated Chi-square value is 6.01 which is less than the tabulated value 7.815 thus the calculated value holds good for null hypothesis and there is significant relation  between customer preference and bank’s financial products. Market Share

For calculating market share of Kotak Mahindra Bank among other Banks number of  respondents are compared with the total sample size of 150.

23% 34% Others

Kotak

ICICI 20%

HDFC

23%

Inference

The market share of Kotak Mahindra Bank is 34% which is highest among other Banks.

Fina Financ ncia iall pro prod ducts ucts

No of Resp Respon onde dent ntss

Saving

75

Current

45

Fixed Deposits

30

Hypothesis Testing

Hypothesis testing is done by Chi-square test; χ 2 = ∑k  (Oi - Ei)2 i =1 Ei χ 2 = Chi-square, Oi = Observed Frequency, Ei = Expected Frequency, k = number of  categories

Degree of freedom = 2, Tabulated value at 5% level of significance = 5.991

Banks Financial Products

Observed (O)

Expected (E)

(O – E)

(O – E)²

(O – E)²\E

Saving

75

50

-25

625

12.5

Current

45

50

-5

25

0. 5

Fixed Deposits

30

50

-20

400

8

Calculated Chi-square value( χ 2 ) = 21

Inference

The calculated Chi-square value is 21 which is more than the tabulated value 7.815 thus the null hypothesis is rejected and there is no significant significant relation between bank’s financial products and business development.

Market Share

For calculating market share of Kotak Mahindra Bank among other Banks number of  respondents are compared with the total sample size of 150.

20%

0% 1 50%

3 5

30%

0%

Inference From the Pie chart it very clear that out of the sample size of 150 about 50% of them have Saving Account in the Bank .30% have current account and the remaining 20% have Fixed deposit in the banks.

Financial Products

Kotak  Mahindra

ICICI

HDFC

Others

12

25

20

18

5

10

17

13

5

8

9

8

Saving a\c

Current a\c

Fixed Deposits

Saving a\c 30 ICICI 25 25 HDFC 20 20

Other  18

Kotak 15

Series2 12

10

5

0

Inference

From the Histogra Histogram m it is very clear clear that out of the 150 respondent respondent surveyed surveyed , when it come to opening of Saving Account more person prefer ICICI Bank in comparison to other Bank being taken in the survey.

Current a\c 18 HDFC

17

16

Others 14

13

12

ICICI 10

10

8 Kotak 6 5

4

2

0

Inference

From the Histogra Histogram m it is very clear clear that out of the 150 respondent respondent surveyed surveyed , when it come to opening of Current account more person prefer HDFC Bank in comparison to other Bank being taken in the survey.

Fixed Deposits 10 HDFC 9 ICICI

Others

8 7 6 Kotak 5 9 4

8

8

3 5 2 1 0 1

2

3

4

5

6

7

Inference

From the Histogra Histogram m it is very clear clear that out of the 150 respondent respondent surveyed surveyed , when it come to Fixed Deposits the preference of the customer for Bank taken in the survey is mixed.

CHAPTER-V

Interpretation & Findings

•

After data analysis and hypothesis testing it is evaluated that null hypothesis holds good. and there is significant relation between customer preference and bank’s financial products As, the calculated value of χ2is χ2 is less than the tabulated value , null hypothesis holds good .

•

•

•

After data analysis and hypothesis testing it is evaluated that null hypothesis does not holds good the null hypothesis hypothesis is rejected and there is no significant significant relation  between bank’s financial products and business development. As, the calculated value of χ2 is more than the tabulated tabulated value , null hypothesis does not holds good. . As per the survey conducted, it is to be noticed a good sector of the people prefer  to be customers of nationalized banks. This result can be very well explained by the fact that nationalized banks are acquainted with the Government and that ups and downs in business will not affect the existence e xistence of the bank. Also the RBI too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. However it is also seen that a good  percentage of people also opt for private banks such as ICICI, bearing in mind the amount of experience they posses in the field of banking. These private banks, even though living with nationalized banks, which have the lion’s share, appear to  be huge market players and market turners. As per the data analysis it was seen that KMBL is prioritizing the premium class and middle class and not to the needs of lower class people the reason behind doing so is, that by targeting the premium class people they can have a good float  because by maintaining float they can lend in the call money market or they can utlize the money by keeping in the currency chest. As KMBL is not targeting the needs of lower end customers it is because maintaining account for low range customers will lead to increase in the operating cost of the bank and they don’t have that type of income to go for this option. As banks operation has recently starte started d in LUCKNO LUCKNOW W region region so they they are initi initiall ally y target targeting ing the higher higher end customers.

•

Where as if if we talk about about ICICI, ICICI, HDFC HDFC bank bank then then they are targeting targeting to both both higher higher and lower lower end custom customers ers becaus becausee they they do have wide access accessibi ibilit lity y of  ATMS and also they have more branches then Kotak Bank. As these two banks has there operations o perations from a long time if compared to Kotak Bank that’s why customers or people have a good awareness of these two banks

•

The The rang rangee of prod produc ucts ts of Hdfc Hdfc ,ICI ,ICICI CI,, is much much more more than than that that of Kota Kotak  k  Mankindra that’s why people wants to open there account or have relation with these two banks as they can find all there financial needs under a single roof.

•

According to the survey conducted on which banks are people associated with it was seen that nationalized banks achieved the more or less same amount of   preference ratio as seen above. In the sample size of 150, a huge portion of people

are associated with nationalized banks. This particular survey also shows the same results for the rest of the banks, in the order “private banks, international banks and co-operative banks” respectively.

•

On a global global scale scale technol technologi ogical cal innova innovatio tions ns have have been been the main main reason reasonss for  International banks to become market drivers and leaders, but the same cannot be said about India. Here improvement of technology has not yet played over the minds of the people. It can be said that only the higher society of the Indian  popul  populati ation on would would consid consider er techno technolog logica icall innovat innovation ionss to be very very import important ant in terms of deciding the importance of the bank. The other parts of India would hardly consider it to be reason in selecting the bank.

•

Keeping in mind the above analysis most of the people surveyed in this sample were not even aware of the different services provided by the bank. Mobile  banking and net banking were Greek and Latin to them. Such people would keep technology in mind to select the bank. But on the other hand the people who understand the importance of technology recognized the various services that are  provided and also mentioned that technology today in India has made banking easier. However a huge sector of the people surveyed knew the importance of an ATM or Credit cards, but the usage of these facilities was not found to be up to the mark.

•

As seen seen at the the star startt of this this parti particu cula larr anal analys ysis is the the type type of bank bank peopl peoplee are are associated with stays the same even when given the choice of considering a change of bank. People who are associated with their particular bank do not wish to change as the reasons for their selection are satisfied by the bank. The few  people who were not satisfied with their particular bank, their reasons for non satisfaction range from bad customer service to lack of technology to limited schemes provided to them

SUGGESTIONS •

First of all the changes in the attitude of the staff should be arising in the  banks.

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Customer care service should be implemented in the voluntary method.  New technologies must be used in every service and functions made by the  bank.

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Computerization system should be used in every function on the bank.

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There should be transparency in all services offered by the banks.

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The operations of all the banks should be in 24 hrs.

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Online transactions and information technologies must be introduced and made in use in every bank.

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They should try to avoid the credits frauds.

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E-commerce and E-banking must be introduced in every bank 

BIBLIOGRAPHY

Websites     

www.google.com www.rbi.org www.banknetindia.com www.thehindubusinessline.com www.kotakMahindra.com

Libraries referred 

College library  Reserve Bank of India library (Did not allow us to refer) Books/Journals/Bulletins      

Banking Finance RBI Bulletin Indian Banking Commercial Banking in India Co-Operative Banks Economic Times