A PROJECT REPORT ON
“CUSTOMER PREFERENCES FOR CURRENT ACCOUNT AND SAVING ACCOUNT”
Undertaken At “KOTAK MAHINDRA BANK”
Submitted In The Partial Fulfillment For The Award Of The Degree of MASTER OF BUSINESS ADMINISTRATION
Submitted To:
Submitted By:
Mr. Ajit Bajpai Branch Manager
Deepankar Sharma
AMITY BUSINESS SCHOOL (Approved By AICTE. Govt. Of India &Affiliated to NAAC)
Gomti Nagar Extension Near Malore MOC Campus
Declaration This project titled
“preference of the customer on current account and
saving account”” being submitted by me in the partial fulfillment o f requirements for the award of Master o f Business Administration degree from Amity business school affiliated to AICTE. I have not submitted this work anywhere else for any other degree or diploma. All sources of information and help are authentic and have been acknowledged in the report
Deepankar Sharma M.B.A. IInd Year
CERTIFICATE DATE:
T h i s i s t o c e r t i f y t h a t t h e p r o j e c t w o r k t i t l e “customer preference on current account and saving account KOTAK MAHINDRA BANK” made by deepankar sharma is an authentic work carried out by him In two months time under my guidance and supervision in the Marketing and sales department of Kotak Mahindra Bank Limited.
The report submitted has been found satisfactory for the partial fulfillment of the degree of Master of Business Administration.
MR. AJEET BAJPAI (BRANCH MANAGER) (Project Guide)
ACKNOWLEDGEMENT A t th e o u t se t , I w o u l d l i k e to t h a n k th e s t a f f of K O T A K M A H I N D R A B A N K fo r g iv i ng m e t h e a p p r o v a l a nd c o - op e r a t i ng m e i n m y pr o j e c t a n d a s w e l l a s g iv i n g me g u i d an ce i n t h e p r o b le m s f a c ed . I t h a n k m y P r o j e ct G u i d e Mr.Mahesh Kumar . For his e n c o ur a g em e n t an d c o n tr ib u t io n of t i m e , co u n s e l a nd m a t er ia ls .
A he a r t fe l t thank to t h e ma n y re s p o n d en t s su r veyed wh o s e id e a s , critic a l i n s i gh t s a n d suggestions have been invaluable i n t h e p r ep a r a t io n o f t h i s re p or t .
Table content Chapter1 1. Theoretical presentation of the topic
Chapter2 1. The background 2. Company and its product line 3. Feature of the product 4. Swot analysis
Chapter3 Presentation of data and its analysis Financial planning of the customer Main recommendation which can be given to the customer Chapter4 Findings and conclusion Questionnaire Bibliography Synopsis
Chapter-1 EXECUTIVESUMMARY
The project is based on the sales strategies for the Banking products with a special refer e n c e s t o K O T A K M A H I N D R A B AN K a n d t h e c o n s u m e r p e r c e p t i o n a b o u t t h e s a m e . First and Foremost, the purpose of KOTAK MAHINDRA BANK is to fulfill the needs fo r investment under one roof. T h i s project s h o w s , t h e c o m m o n m a n h a s s t a r t e d c a p i t a l m a r k e t t e r m l i k e b u l l a n d b e a r e xplode new time. I t g i v e s t h e d e t a i l v i e w o f t h e r e g u l a t o r y f r a m e w o r k f o r t h e KOTAK MAHINDRA BAN K The focus the shift to various products of KOTAK MAHINDRA BANK to cater to the ne eds such as return explanation, financial position, risk tolerance, etc. T h e next phase look up the investment in growth o oriented stock which are available a t attractive relative valuation. Further to t hi s , p r o j e c t p r o c e e d s w i t h t h e r e s e a r c h designed in t h e li g h t o f t h e c o r e o b j e c t i v e s o f t h e s t u d y a l o n g w i t h t h e s u b o b j e c t i v e s t h a t a r e g i v e n d u e consideration throughou t the research. It also enlists all the data sources as to by which means the study has gained m o m e n t u m . T h e d a t a h a s b e e n c collected by virtue o f questionnaire s a n d websites , res pec t iive ly . T he scope of the study is suggested in f favor of the companies s striving to emerge e as super powers drawn out by the survey.These companies can fine tune their prospective ve ones and can grab the opportunities of the transforming the weakness of other into th eir own strength.
Chapter-2 INTRODUCTION “Think Investment Think Kotak” Banks like Kotak Mahindra, standard chartered, ICICI, HDFC, and Citibank now bring your Bank Account and Debit card to your fingertips. With Mobile commerce, you can perform a wide range of query-based transactions from your Mobile Phone, without even making a call. 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 corporate. The group has a net worth of over Rs.1, 800 crore and employs over 4,400 employees in its various businesses. With a presence in 82 cities in India and offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000.
Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms) and Old Mutual (a large insurance, banking and asset management conglomerate). The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited. Since then it's been a steady and confident journey to growth and success.
1986 : Kotak Mahindra Finance Limited starts the activity of Bill Discounting 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 : Brokerage and Distribution businesses incorporated into a separate company - Kotak
1995
Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company 1996
: The Auto Finance Business is hived off into a separate company - Kotak Mahindra Primus
Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Group’s entry into information distribution. 1998
:
Enters the mutual fund market with the launch of Kotak Mahindra Asset
Management Company. 2000
: Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. Kotak
Securities launches kotakstreet.com - its on-line broking site. Formal commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2003
: Kotak Mahindra Finance Ltd. Converts to bank.
COMPANY’S PROFILE Established in 1984, The Kotak Mahindra Group has long been one of India’s most reputed financial organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the group’s flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).This approval creates banking history since Kotak Mahindra Finance Ltd is the first company in India to convert to a bank. The license authorizing the bank to carry on banking business has been obtained from the RBI in tune with Section 22 of the Banking Regulation Act 1949. KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney &A.A.Pinto under the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a Certificate of Commencement of Business on 11th Feb 1986. The bank customers have access to entire VISA network of 4500 ATM’S in India and 800000ATM’S worldwide accepted in more than 56000 establishments across India and 10 million worldwide. The customer also has access to over 800 ATM’s with sharing arrangements with UTI BANK, of these 125 are in the NCR.
Key group companies and their business Kotak MahindraBank The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance.
KotakMahindraCapitalCompany Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services.
KotakSecurities Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over country through franchisees and coordinators. Kotak Securities Ltd. offers online and offline services based on wellresearched expertise and financial products to non-institutional investors.
KotakMahindraPrime Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India.
KotakMahindraAssetManagementCompany Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 20,800 crore and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.
KotakMahindraOldMutualLifeInsuranceLimited Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.
BOARD OF DIRECTORS Mr. K.M.Gherda – Executive Chairman Mr. Uday Kotak –Executive Vice Chairman and Managing Director Mr. Anand Mahindra –Co Promoter of Kotak Mahindra Bank and Vice Chairman and Managing Director of Mahindra and Mahindra Mr. Cyril Shroff –Co Promoter Mr. Pradeep N Kotak –Agri Division of Kotak and Company Limited Dr. Shanker Acharya Mr. Shivaji Dam –Managing Director Kotak Mahindra Old Mutual Life Insurance Limited Mr. C.Jayaram –Executive Director Mr. Dipak Gupta –Executive Director
ProductDetail Kotak Mahindra Bank is one of the prominent subsidiaries of Kotak Mahindra group. The activities of the company being parallel to its objective are very wide and cover a l l t h e c o m p o n e n t s o f a B a n k . T h e Basic area of Operations is the Banking business , other products are meant for the r egular revenue generation . Being a Banking house , the company is in regu l a r t o u c h w i t h B a n k i n g A c c o u n t s , I n v e s t m e n t S e r v i c e s , C o n v e n i e n c e B a n k i n g and Other Services. They offer complete solutions that address all your financial requirements, whether you're an individual or a firm. From everyday banking to long term investments — their offering covers it all. This wide range of products is delivered to you with a genuine understanding of your specific need and warm, personalised service. Kotak Mahindra Bank, it's not about selling you many different products — it's about working out a holistic, pragmatic solution that addresses your financial needs. Through their varied products,they commit themselves to becoming “banker” to the customer rather than being “asset financier” to our customers.
Banking Accounts There are three types of banking account:
Savings Account Current Account Term Deposit
SAVINGSACCOUNT “Choose from our range of Savings Accounts”
KOTAK MAHINDRA has got a variety of options of savings accounts to choose from for its customers according to their convenience and requirements .These savings accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 20000 (KOTAK PRO SAVINGS ACCOUNT) and at Rs75000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements.
EDGE SAVINGS ACCOUNT:
Kotak Mahindra Bank´s Edge Savings Account is a
complete financial package customized to suit individual banking needs. Its constant endeavour is to enable regular financial transactions through online platform so that most of payments can be made directly through your account or card. Features & Benefits Wide ATM access through the Kotak Mahindra Bank Debit Card One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or enquire balance at no extra charge!
Multiple Access Channels Access An account through phone, mobile phone or internet to get information about account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account Use the free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.
Quick and easy funds transfer Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time.
Free investment account One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting your Bank Account. Besides this you get a
consolidated view of all your mutual fund investments across schemes with updated returns status, latest NAV information and research reports.
Attractive returns Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.
PRO SAVINGS ACCOUNT: Kotak Mahindra Bank´s Pro Savings Account is an account packed with powerful features to provide a superior banking experience at a very comfortable balance requirement. They provide a relationship manager who will specifically take care of banking and investment needs.
Features&Benefits Free ATM access all domestic VISA ATM network Walk into any VISA ATM in India to check balance or withdraw cash absolutely free. no longer have to worry about locating your Bank or Partner Bank ATM – Use the first VISA ATM that you spot, for cash withdrawal or balance enquiry transactions.
Multiple access channels Access your account through phone, mobile phone or internet to get information on your account balance or track your transactions. You can even transfer funds through Phone Banking or Net Banking.
Free investment account One can open an investment account, and use the Net Banking facility to purchase/redeem mutual funds online while directly debiting / crediting bank account. Besides this get a consolidated view of all the mutual fund investments across schemes with updated returns status, latest NAV information and research reports.
Financial payments facilitated through the savings account Use our free Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping.
Quick and easy funds transfer Quick funds transfer to a third party account with another Bank is available across 15 locations through Net Banking. Also get a multi-city cheque book so that money from account is received by the beneficiary in the fastest possible time
Attractive returns Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into your account to meet fund requirements when your withdrawals exceed the balance available in your account, thereby providing you maximum liquidity.
Dedicated relationship manager You get a one point contact for all your banking related queries and transactions. Your relationship manager will also help you with financial planning and sound investment decisions.
Free banking transactions You can issue demand drafts or send cheques for collection on branch locations without any charge to your account.
ACE SAVINGS ACOUNT: Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a world of financial benefits and privileged banking transactions. The account carries benefits ranging from personal investment advisory services to concierge services to free banking transactions. Onewill find that this package of services and privileges is unmatched by any other savings account in the market.
Features&Benefits
Free access at all domestic and international VISA ATMs No longer have to worry about locating your Bank or Partner Bank ATM - Use the first VISA ATM that you spot, for free cash withdrawal or balance enquiry transactions. So walk into any VISA ATM in India or abroad to withdraw cash or for balance enquiry.
Multiple access channels Access the account anytime through land line, mobile phone or internet to get information on account balance or track transactions. One can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account Use the free Kotak Payment Gateway to make online payments for utility bills, credit cards, online trading of shares or even online shopping. All this at the click of a mouse!
Quick and easy funds transfer Transfer funds easily and with speed, to a beneficiary account at another bank. One can avail of this facility by walking into any of branches or by simple logging on to Net Banking. Also get a free multi-city cheque book so that money from your account is transferred to the beneficiary's account at any of branch locations, in the fastest possible time.
Free banking transactions One can issue demand drafts or send cheques for collection at all branches for no extra charge.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term Deposits sweep back into account to meet fund requirements when withdrawals exceed the balance available in the account, thereby providing maximum liquidity.
Silk - The Saving's Programme for Women Kotak Mahindra Bank Silk programme is dedicated to the woman of substance. Be it the best of offers in finance, dining, health or lifestyle, this account has everything to offer. Silk is truly a toast to many things which empower women and make you feel special in every way.
What the Silk Programme offers Worry Free Banking Features
Up to 6% on Savings Account ActivMoney, Bill Pay, Netc@rd, Wealth Statement, Home Banking & Other powerful transactional banking features
Rewards on Debit Card Spends
Exciting Monthly Cash Back across various categories OR Option of free monthly Movie tickets instead of Cash back
Financial Privileges
Exclusive Privileges
Debit Card Limits: Enhanced debit card withdrawal & POS limits
Exclusive discounts and offers across:
Photo Debit Card with Purchase Protection of 50,000 and Lost Card Liability of 75,000 on the Debit Card Minor Account: 2 NMC waived Edge account (Nova in case of Semi Urban/ Rural Branch)
Dining Jewellery Entertainment Beauty
Gold: Discount of 3.5% on all gold coin & bars for lifetime
Shopping
Lockers: Discount of 35% on Annual Rental (subject to maintenance of AQB)
Travel
Best Compliments Card: Discount of 50% on issuance fee for lifetime
Kids
Consumer Durables HealthOption of free monthly Movie tickets instead of Cash back Offers & Validity subject to change
*Conditions Apply
Key Features Benefits of Worry-free Banking Rewards on your Silk debit card Financial Privileges Exclusive Privileges
Benefits of Worry-Free Banking As a Silk Account Holder, Kotak Mahindra Bank helps you put aside many of your banking worries: Higher Interest rate Get 6% interest p.a. on your Savings Account balance over 1 lakh and 5.5% p.a. on balance up to 1 lakh Higher returns through ActivMoney Earn the returns of a term deposit with the freedom to withdraw money anytime, just like in a Savings Accoun Hassle-free bill payments Bill Pay facility: Use our BillPay facility for automatic payments of your bills through your bank account Safer online transactions Generate a virtual card for online transactions with Kotak Gold netc@rd facility. Wealth Statement This facility gives you updates of your Savings Account, Current Account, Term Deposits, Demat Account and Mutual Funds, all in a single account statement Travel cashless Use Kotak Mahindra Bank's Silk Debit Card and get special offers, privileges, lifestyle benefits and much more Home Banking Service Enjoy services like cash pick-up, cash delivery, cheque / draft delivery, etc. without stepping out of your home. This service is available in select cities
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Rewards on your Silk Debit Card Spends 60 Free movie tickets You can opt for the option of free monthly Movie Tickets at the time of account opening to watch all your favorite movies1 Rs 4500 Cashback
With your exclusive Silk Photo Debit Card, enjoy attractive Cashback upto Rs 4500/-each time you shop2. Your Silk Debit Card offers Cashback across all outlets in the following categories: 1.
Grocery
2. Jewellery 3. Fuel 4. Hotel and Dining 5. Entertainment 6. Health and Beauty 7. Apparel
Reward Details on debit card spends are listed below3
Cashback
Edge/Nova
Pro/Classic
Ace
1200 p.a. @2.50% upto 100/month
1800 p.a. @3.00% upto 4500 p.a. @5.00% upto 150/month 375/month OR
Movie Tickets (Monday to Saturday)
24 tickets @2/month
36 tickets @3/month
60 tickets @5/month
Criteria to avail rewards on debit card spends3 Edge/Nova Min Spend/Month subject to maintenance of AMB for previous month 1
2500/month
Pro/Classic 5000/month
Ace 7500/month
Cashback / 2Movie ticket subject to meeting of minimum Average Monthly Balance requirement. 1 Cashback / 2Movie ticket will be credited monthly. 2 ATM Cash Withdrawals are not eligible for Cashback. 3 Applicable maximum yearly Movie Tickets for Ace Savings Account Holders. Details of the same will be communicated through email and SMS.
Financial Privileges NMC waived Kid's Account The non maintenance charge on the child's account has been waived off for Silk customers Discount on Lockers As a Silk customer, enjoy a special 35% discount on Locker rentals for the first year Discounts on Gold Silk customers get a special discount of 3.5% on every purchase of Gold Eternity Coins and Bars Discount on Best Compliments Card As a Silk customer, get a 50% discount on the issuance fee on this card Free Investment Account Enjoy waiver of the Annual Maintenance Charge on your Investment Account Higher Debit Card Withdrawal Limits With our Kotak Silk Debit Card, spend without worry, anywhere, anytime. Enjoy the advantage of higher withdrawal limits with no annual fees on Pro and Ace Accounts
Additional features of Kotak Silk Debit Card Swipe Limit at Merchant Outlet (Point of Sale Limit)
75,000
ATM Withdrawal Limit
75,000
Cash Withdrawal at Merchant Outlet (Cash @ POS)
1, 000
Lost Card Liability
75,000
Purchase Protection
50,000
Debit Card Type
Classic
7. 6 % p.a Tax free Now get more from the bank, keep less in the bank. As per the Union Budget 2012, interest earned up to Rs 10000 from your Savings Account, is now tax free (starting Apr 1st, 2012)4 Average Savings Account balance required to avail of this exemption: Ordinary account (4.0 % p.a.) 2.5 lakhs
Kotak account (up to 6.0% p.a.) 1.75 lakhs
4
Subject to Parliamentary approvals. The above table is for illustrative purposes only.
Exclusive Privileges
No
Offer
Detail
Valid Upto
1
Dining: Enjoy discounts with our Fine Dining Program at over 120 Restaurants across 6 cities
Offer valid till September 30th, 2012
2
Get one regular Cappuccino as a complimentary beverage on the Offer valid till purchase of one regular Cappuccino at selected Barista Lavazza & December 31st, Barista Creme Lavazza. 2012
3
Cinemax: Avail 10% discount on all online movie ticket purchases at Cinemax.
Offer valid till December 31st, 2012
5
Bagit Today: 1) Enjoy a one-time voucher of 300 off on a minimum 1000 purchase 2) Receive 2.5% additional discount on cart value
Offer valid till December 31st, 2012
5
Ferns and Petals: 1) Enjoy 18% off at fnp.com on domestic flowers & gifting 2) Avail 12% off at fnp.com on international flowers & gifting
Offer valid till August 31st, 2012
6
eBay.in: Enjoy attractive discounts on all your purchases.
Offer valid till August 30th, 2012
7
Indigo: Attractive discounts on domestic, international flights, holiday bookings, Tirupati bus tours, weekend Getaways. Offer valid till August 31, 2012.
Offer valid till August 31st, 2012
8
makemytrip.com: Enjoy 5% cashback on domestic holidays, international flights & 7% cashback on International Holidays
Offer valid till August 30th, 2012
9
Thyrocare: Buy One Get One on comprehensive Health
Offer valid till August 31st,
Packages at
1800.
2012
10
Kairali: 20% discount on Accomodation, Ayurvedic Treatments & 10% discount on Ayurvedic Medicine.
11
Gili: Attractive discounts at over 60 Gili outlets. 10% discount on Offer valid till any purchase December 31st, 2012
12
Surat Diamonds: Get 1000 Discount on purchase of jewellery worth 3000 and above Also get 2000 Discount on purchase of jewellery worth 6000 and above.
Offer valid till December 31st, 2012
13
SIA: Enjoy flat 10% discount on any purchase
Offer valid till September 30th, 2012
14
VLCC: Get 25% discount on select beauty treatments. Also avail Offer valid till a special beauty Head to Toe package worth 4100 for 1299 June 30th, 2012
15
www.shopatdisney.in: Get above
16
Firstcry: Enjoy attractive discounts on all your purchases.
17
IFB: Enjoy Discount upto 3000* on Front Loader Washing Offer valid till September 30th, Machines, Discount upto 1000* off on Top Loader Washing 2012 Machines , Discount upto 2000* off on Microwave Oven, Discount upto 1000* off on Dishwashers, Discount upto 750* off on Dryer
250 off on purchases of 2000 &
Offer valid till August 31st, 2012
Offer valid till December 31st, 2012 Offer valid till August 31st, 2012
OTHER BASIC TYPES OF OFFERS GIVEN BY KOTAK Why you should send money to India using Click2Remit Get the best offers on the web, reliable online security, and economical charges for transferring money to India; we at Click2Remit make sure that you send money easily, conveniently and quickly! Choose from multiple sending and delivery options Estimate the delivery information and track your transfers via Track Tool Enjoy economical charges to send money safely Get special rates like guaranteed rate for sending money Give instructions to open a term deposit and a bank account easily
Privy League Kotak Mahindra Bank introduces Privy League, a premium banking services offering financial solutions with exclusive benefits. Join the Privy League to expand your lifestyle, grow your wealth, travel the world, luxuriously and retire to comfort while you meet your responsibilities.
Privy League Membership: Available to Resident Individuals and Non Resident Individuals Members above the age of 18 years only Choice of two plans based on your Financial Objective and Portfolio o
Gold Plan for Relationship Value* of INR 10 Lakhs
o
Platinum Plan at a Relationship Value* of INR 25 Lakhs
Note: Relationship Value comprises of your balance across Savings Accounts, Deposits and Investments. Privy League members are required to maintain a Savings Account with an Average Quarterly Balance (AQB) of INR Rs. 50,000. Special Privileges for Privy League Customers: Premium Banking: With Privy League you enjoy access to a range of financial solutions with your bank account in addition to accelerated customer service from your dedicated Relationship Manager.
Banking Privileges: Privy League Platinum Debit and ATM Card with flexi limit facility and added waivers and offers Home Banking services like Bill Pay, Kotak Payment Gateway and Investment Convenience Locker services across multiple locations (in select branches) at a preferential price Kotak Gold Eternity offers on are Swiss-made, 24 - Carat pure, 99.99% Assay certified Gold coins and bars ranging from 5 to 100 gms Internet banking to access special offers, promotions and exclusive benefits under the Privileges section Preferred Processing of banking transactions at all branch locations Special Fees and Charges on various services Tax Advisory Services through our tie-up with Sudit K. Parekh & Co. and easy tax payments payable at a Kotak Mahindra Bank branch itself.
Lifestyle Updates: Experience the world of culture, sport and indulge your choice of leisure activities with Privy League lifestyle offers.
Lifestyle Privileges: Dining benefits at the best restaurants in town Entertainment & Leisure Privileges with exclusive invites to movies, premiers, theatrical plays, sporting events and more Attend knowledge-based seminars, Tax Advisory or Investment workshops, premium car test-drives and lifestyle product launches Convenience Offers like gifting services to your loved ones on special days round the year from a choice of flowers, bouquets and chocolates Travel and Holiday offers with tie ups for car rentals, travel operators, hotels, rejuvenation centres and much more Concierge Services available with the VISA Platinum Card on travel plans, business equipment, entertainment plans and other specialty services courtesy of VISA
Note: Terms and Conditions applicable. Details of Lifestyle Privileges are available under the Post Login section of Net Banking.
NRI ADVICES GIVEN BY THE BANK
NRI Tools Risk Profiler - Estimate and understand your investment risk profile based on 11 questions to help recognize the right investment type for your profile.
Investment Wizard - Use this simple wizard for getting started on your India investments with three easy steps.
PAN Assistance PAN Procedure - Every Indian citizen entering a financial transaction in India is mandatorily required to have a Permanent Account Number. It is the sole identification number for the purpose of tax payments and investments.
PAN Application - How to Apply for an NRI PAN Card? Read Instructions to fill Form 49A, the application form for a PAN.
NRI Tax Advisor Get tax advice and more from our NRI experts
Advisor’s Profile - Ameet Patel is a Chartered Accountant and a tax partner at Sudit K Parekh & Co., Chartered Accountants. Ameet is a rank holder and has secured ranks at the Inter and Final CA examinations at the all India level.
Products and its services Personal loans Personal loans does not depends on the financial needs of the customer, unexpected expenses, school fees, wedding in the family, home improvement, or that long awaited vacation. It provides each and everything which makes life simple, documentation is minimal and approval is quick
Key features: 1. 2. 3. 4. 5.
50000 to 50lacs Quick approval Minimal paper work and hassle free processing Flexible repayment options Convenience of services at your doorsteps
Home loans At kotak Mahindra bank, we offer highly customized facilities of availing home loans. Sometimes customers are unable to spare extra time from their hectic schedules, and the bank doorstep services make the home buying process seamless and pleasurable. We believe that in order to success, we need to offer not only competitive products, but also the best possible services and value added features and benefits.
Key features: 1. 2. 3. 4. 5. 6.
High eligibility for business Doorstep services Attractive interest rates Simplified documentation Insurance option to cover your home loans at attractive premium Quicker turnaround time
Loan against Property A Loan against Property is a loan given against the security of your existing property. The benefit is that interest rate on loan against property are generally lower than rates on other customer loan. Key Features: 1. High loan eligibility for businessman. 2. Loans amount ranging from Rs. 10lakhs-Rs. 3crore. 3. Loans against residential as well as commercial properties. 4. Funds on all your needs. 5. Kotak commercial property loans.
Home Loan Balance Transfer Home Loan Transfer is basically taking a home loan, to pay off existing home loan. Future payments are made to Kotak Mahindra Bank. Typically, the choice to transfer is made when interest rates are lower than the original loan. A Top-up over the existing loan can provide you ready cash for any of your needs. Key Features: 1. Transfer your loan to lower interest rates. 2. Free personal accident cover with every loan. 3. Simple documentation and speedy processing.
Business Loans Kotak Mahindra Bank presents Business Loans Solutions – the single expert source for all your financial needs. We are well suited and experienced in understanding your business requirements as we have helped a lot of our clients grow their businesses, across various industries. So, if you want to diversify your business, fund your next project, or take a personal loan, you can now do it without disturbing your investments or taking multiple loans. With personalized solutions and service, we ensure it’s all you need to make your business dream come true. Key Features: 1. Avail loans from Rs. 1lacs – 75lacs. 2. Quick Approval & hassle-free processing. 3. Minimal paperwork. 4. Flexible repayment options. 5. Repay with easily EMIs. 6. Convenience of service at your doorstep.
CURRENTACCOUNT Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether small/ mid size business or an enterprise spread across multiple locations in the country, would find a Current Account that's just designed for you. These Current accounts offer attractive returns along with personalized banking services at three convenient average quarterly balances(AQB)levels of Rs. 25000 (KOTAK EDGE
SAVINGS
ACCOUNT),Rs.
50000
(KOTAK
PRO
SAVINGS
ACCOUNT)
and
at
Rs250000(KOTAK ACE SAVINGS ACCOUNT).The average quarterly balance levels as well the corresponding services and benefits try to ensure the various customer needs and requirements. With features ranging from Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free Demat Account, and more! Thus the three account opening options in savings account are as mentioned above:
Edge Current Account In need of a well equipped bank account to keep pace in all the business endeavors. They offer the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and the entire gamut of Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Edge Current Account is the ideal way to make money work harder.
Features&Benefits Multi City Banking Current account/s with Kotak Mahindra Bank will be recognized in every other branch. One can just walk into a Kotak Mahindra Bank branch in any of our branches across country to satisfy all the banking needs
. 2 - Way Sweep* : Term Deposit linked Current Account Kotak 2-Way Sweep ensures that money never stops working for you. Daily balances, above a threshold level, in Current Account are automatically swept out into Term Deposits (TD). This 'swept out amount' is brought back into account to meet fund requirements when withdrawals exceed the balance available in the account (or when the account balance goes below the specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin advantages of attractive returns & maximum liquidity.
Free Demand Drafts and Pay Orders Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank Branch location in India.
At-par Cheques Get free At-par Cheques that are treated as 'local clearing' cheques across all branch locations. All these at nominal costs.
Cheque Collection All Outstation cheques, drawn on any of branch locations, are collected 'at nominal charge' for you. The strong network of correspondent banks enables us to collect cheques from 1600 locations across India at faster speed and minimal cost
Mobile Banking and Alerts Our Mobile Banking & Alerts service enables to access bank account on Mobile Phone. One can access all your standing instructions (SI), any large credits or debits, available balance, balance below AQB, any SI failure and SIs successfully executed will be intimated to you via SMS
PRO Current Account You need a well equipped bank account to keep pace with you in the ever changing business scenario. We offer you the Kotak Pro Current Account, armed with Kotak 2-Way Sweep, as well as an entire gamut of Banking Privileges and 'user-friendly' Convenience Banking facilities. The feature rich Kotak Pro Current Account is the ideal way to make your money work harder.
Key Features Dedicated Relationship Manager Free Demand Drafts & Pay Orders> Free At Home Services Better Forex rates and Efficient Trade Services
ACE Current Account In the need of a well equipped bank account to keep pace with you in the ever changing business scenario. They offer you the Kotak Ace Current Account, armed with Business benefits and exclusive Ace Privileges and an entire gamut of banking conveniences especially designed for you. The feature rich Kotak Ace Account is the ideal way to make money work harder
TermDeposits
Key Features Ease and convenience of operation Liquidity through overdraft or sweep-in facility No penalty on pre-mature encashment Nomination facility available Give your portfolio stability of returns and safety and liquidity. Invest in Kotak Bank Term Deposit. It offer attractive returns on term deposits and investing in them is really simple and convenient.
Features&Benefits Ease and convenience of operation For the first time in India, New to Bank customer can also applyonline for term deposit. An existing customer,can place a term deposit through Phone Banking or Net Banking. What's more, one can even renew this deposit by placing an instruction over phone. Needless to mention, he can do all this and more by walking across into any of branches.
Liquidity through overdraft or sweep-in facility Deposit will be available to you should you need them in case of an emergency. One can avail upto 85% overdraft against term by paying 2% above deposit rate. This facility is available for deposits above Rs.50,000 for a tenure of 181 days or more. One can also choose to link term deposit to savings / current account, whereby if need be, term deposit will automatically be encashed to meet withdrawal requirement.
No penalty on pre-mature encashment In case term deposit is pre-maturely encashed,one will earn interest at the rate prevailing on the date of deposit for the withdrawn amount.
Nomination facility available One can avail this facility for each & every account that open with us i.e. nominate different persons for different term deposit accounts can choose to change the nominee through a declaration in the appropriate form to revise the nomination during the term of the deposit
.CASA
REVIVAL
(The tool used by bank to revive the account for the existing account holders) Preamble: CASA revival as a program has consistently seen higher delievery for the last three programs in terms of the value revived as IP and the total RV of the account revived. With the success of three cycles of CASA revival behind us we embark on a yearlong CASA revival program for FY12-13 for improving the quality of book and ensuring the customers with a disconnect on transaction, balance maintainance and service dissonance if any are approached with new energy and specifically
focused for revival in a
transacting primary banker relationship. To ensure that the customers who are revived and actively engaged with the bank. Each revival will be accompanied by a mandatory hook on the CA/SA revival. The hooks just to reiterate are 1. SIP 2. AUTOPAY 3. Trade activation 4. E-tax 5. Beat cheque registration 6. Activemoney Each branch has been rolled out a CASA revival number budget in the business budget to ensure focus on the activity and the value is part of the CASA values budget for the branch. Lists of account qualifying for TOD and below AQB revival will be provided in reliability. Branch pack->downloads->download list 1. TOD revival list 2. Below AQB revival list 3. Corporate salary revival list
Entry criteria for CASA accounts in TOD lists All accounts opened before 31st march 2012 have maintained balances below zero or zero consistently for six running months are identified set for TOD revivals. i.e.: accounts opened in march 2012 and consistently zero or negative since November 2011 on EOP balances will be in TOD list.
Entry criteria for CASA accounts in below AQB list: All accounts opened before 31st march 2012 have maintained balances
below AQB consistently for six running months are identified set for below AQB revivals. ie.: account opened in march 2011 and consistently positive but below since November 2011 on EOP balances will be in below aqb revival list.
Entry criteria for corporate salary revival: The list is repopulated basis a report run by corporate salary team with no salary upload since last six months.
The list will be having an additional column for titled priority for ensuring the customers with higher value and recency on the below AQB/TOD behavior are ensured a first level contact immediate basis. What is the offer to the customer: TOD account: we will offer to waive off the TOD and hold balances of these customers. In return, the customer will be required to fund the account with and amount equivalent to or more than the product AQB. A promo code “CRXXYY99” will be affixed on the account where “XX” signifies the month of revival and “yy” the year of revival. PROMO code “CRXXYY99” will signify that the account will enjoy waiver of NMC subject to a transaction count per month for saving account- 4 per month and current account – 8 per month. A list of all accounts in PROMO code will be segregated and will be run through a tool for asserting whether transaction pattern or AQB has been maintained post 1 year of revival process and hence whether to levy NMC charges or not. If the customer under “CRXXYY99” promo is under any other promo at present, “CRXXYY99” shall prevail.
Below AQB account: We will offer to waive off the hold balances of these customers. In return, the customer will be required to fund the account with an amount equivalent or more than the product AQB. A promo code “BRXXYY06” will be affixed on the account “xx” signifies the month of revival and “yy” the year of revival.
PROMO code “BRXXYY06” will signify the account will enjoy NMC holiday till six
months post revival. If the customer under “BRXXYY06” will signify the will anjoy NMC holiday till six months post revival. If the customer under “BRXXYY06” promo is under any other promo at present , “BRXXYY06” shall prevail.
Corporate salary revival The employee has to interact with the customer and pitch the correct product code for the customer. It could even be ace. Branch staff to contact these set of accounts for conversion to a normal SA. The customer’s request for transfer of accounts between schemes will be obtained and entered in reliability. The request will be handled as per the existing process for adhoc scheme transfers. Customers who are not interested to continue will be also entered in reliability which will be sent to CPC for onward account closure and balances in the account if any will be sent as per process as pay orders on the registered address. PROMO code “CRXXYY99” will signify that the account will enjoy waiver of NMC subject to a transaction count per month for saving account- 4 months and current account – 8 per month. A list of all accounts in PROMO code will be segregated and will be run through a tool for asserting whether transaction pattern or AQB has been maintained post 1 year of revival process and hence whether to levy NMC charges or not. If the customer under “CRXXYY99” shall prevail. Post completion of 30 days from the date of issuance of intimation letter, CPC to close the corporate salary reimbursement account of these customers. The accounts will be transferred within the same branch and will be mapped by default RO ID BRN001. BM of the branch on monthly basis to reassign the accounts among other RO/RMs of the branch basis the relationship value as per the existing process. Frontline action expected: Any resources in the branch can revive relationship managers/ relationship officers/ service officer/ service delivery officer/ branch operation manager/ service manager/ account activation officer. The data provided would contain details like pin code/ product name/ product type priority for revival (based on regency in TOD and peak AMB’S maintained). Revival of the account would mean the customer would have to
give a cheque equivalent or more than the product AQB and entering the same reliability with correct values. Any RO/ RM/ AAM/ AAO revival who successfully revives a relationship of the TOD revival list would get atleast 1 NTB(1 unit) or as per the units grid which is defined at the account type level in SOP document and below AQB list/corporate salary revival list at 0.5 NTB credit in their SOP’S or half of units as defined in the SOP document. This revived account would be taken as fresh sourcing irrespective of the product code and current relationship manager. Credits would be entered as a lead converter. Pl. note that the account revived would have to maintain the product AQB for credit as NTB and have either of the following services enabled for getting the SOP credit in NTB. 1. Sip 2. Auto pay 3. Trade activation 4. E-tax 5. Beat cheque registration 6. Active money Or The customer will also have to do at least 4 transaction in case of saving account and 8 in current account on monthly basis to be considered eligible in SOP.
Reliability We have prepared a special screen in reliability to capture the Revived and Non Revivable accounts. This screen can is available for Relationship Managers (RM Pack), Branch Managers (Branch Pack) and above for input. Once entered, Reliability would be able to provide special reports for the purpose of tracking and other downloads which will enable to manage the whole exercise easily. Enter the Account No. or Name, or CRN of the customer that you want to revive (1st Arrow). Once you select the same, the following information would be displayed
Account Details
Customer Details
Account No.
CRN
Opening Date
CRN Date
Branch EOP Balance (Yesterday Balance) Credit AMB (Book average) Current AMB
Name of the Customer Branch Category of the Customer Segment
(Customer Monthly average Balance) Previous two months AMB
RV – Previous Months Relationship value
Previous two quarter AQBs
Pin Code of the customer
Product AQB
PAN No.
Last Credit Date
BCIF LC – Who sourced the Account?
Flex LC – Who sourced the account
BCIF RM – Who is the RM
(you could use this information to give
for the Client
the client to the same RM / TM who sourced it to revive)
Input for Revival Any customer who is called on for Revival of relationship would have the following disposition as the first step.
1. Non Contactable If the customer is non contactable, pl. click on the radio button and use the application option. If the reason is “Others”, the system will prompt for a specific reason.
2. Contactable & Interested If the customer is contactable, click the radio button “Yes”. Any Account Contacted and is not interested will be given as a dump to CPC for account closure as per TOD dunning process. If the customer is interested in revival, the following screen would popup. a) Amount Collected – the Amount which has been collected as the revival cheque (ideally should be equal or more than the product AQB) b) Converted By – This is where you enter the name of the person who has closed the deal. The Credit of NTB will accrue to this person on for TOD revived cases c) Once you click here a calendar will popup, select the applicable date d) Please tick on the Activation hooks which have been attached to the account. e) Add – Add the deal to be accounted as Revival
3. Contactable & not immediately Interested If the Account is interested but postponed the account funding to a later date once you click on “Interested” the following screen popup giving you three options Interested Now Interested, But Later Not Interested Cases where the customer says, that he is interested and coming to the branch immediately should be updated under “Interested Now” Option. All Not Interested Cases should continue to be updated as “Not interested”. “Interested Later” for all cases where the customer is not immediately interested but will think about the same and needs to be followed up
4. Contactable & Not Interested If the customer is Contactable and not interested, then use the “NO” radio button in the “Is interested item. Once clicked, the “Reason for No interest” has to be entered.
5. Tracking the No. of Revival done by an individual The system will also display the no. of revival done by an individual.
6. Single point Contact for the Activity You could get in touch with
[email protected] for reliability related query and on the campaign you could write to
[email protected].
Data Flow and action at CPC: CPC- Will debit GL 166932(Miscellaneous Payable Retail) and credit the respective account no. with narration “Charges reversed, account activated”. CPC will perform account maintenance, remove Hold Balances marked by TBMS and have a Flex Promo code in Lg “CSRXXYY06”/ “BRXXYY06”/ “CRXXYY99”. As per the list provided by CVM team.
Roles and Responsibility Activity Data allocation/identification Customer interaction
Responsibility CVM
Promo code affixing in Flex
SO/SDO/BOM/SM/RM/ RO/AAM CPC
Charges Reversal/ Removal of Hold balances Letter of revival to be sent to customer
CPC CPC
MIS/input at Reliability Data dump of accounts actioned Campaign Creation/Modification/Legal and business Approvals
BIU/Reliability/CVM BIU/Reliability CVM
INVETSMENT SERVICES
“Making your money grow” At Kotak Mahindra Bank,can recognise that financial needs vary, not just amongst individuals, but across the different stages of your life. They have years of experience in helping people put together an investment portfolio that works best for them.
DEMAT
Key Features Efficient depository services that allow you to hold your shares in convenient, "demat" formats Leverage opportunities in the stock-market when you spot them
It offers streamlined, efficient depository services that allow to hold shares in the convenient "demat" formats and leverage opportunities in the stock-market when you spot them Being a brokerage house, the company is in regular touch with the share market and its relative indexes like NSE &BSE, NCDEX. NSDL, CSDL. L e t ’ s u n d e r s t a n d t h e r e l a t i v e t e r m s :
SEBI (Stock Exchange board of India) It check out on NSE and BSE and all type of share trading (Both primary and secondar y market)
N S E & B S E : - Kotak Mahindra Bank a l l o w s t o c o s t u m e r t o t r a d e i n s h a r e w i t h N S E a n d BSE both (in primary and secondary market both). In BSE costumer can trade in 245 2 stocks and in NSE costumer can trade in 933 companies. The index of NSE is Nifty and for BSE Sensex
NSDL AND CSDL Kotak Mahindra Bank a l l o w t o c o s t u m e r t o i n v e s t i n m u t u a l f u n d a n d b o n d s . N S D L ( N a t i o n al security depository limited) and CSDL (Central security depository limited check o ut on this type of investment
Customer preferences for current account and saving account For saving account: 1. Customer always wants an overdraft facility for future use. 2. There should be less limit for edge account holders. 3. Customers are very happy with CASA revival. 4. Sometimes there is no updation in the account of the customer. 5. Sometimes there is delay in taking debit card facility which is very inconvenient for the customers. 6. Customers are very happy with the 6% intrest rate in saving. 7. When there is good transaction values in the customer’s account than when there are charges interruption in their account than that can be reverted back. 8. Sometimes the sms facility miss lead the customer about the debit amount in their account.
For current account: 1. Delay in the meeting of relationship manager. 2. False promises made to the customers. 3. Reversing back of charges make customer to again start their transactions. 4. Sometimes due to less business improvement it becomes very difficult for the customers to maintain their AQB in their accounts. 5. Sometimes without informing of the customer the amount from the current account directly transfer into fixed deposit which leads to confusion.
PRODUCTS OFFEREDBY KOTAKMAHINRA BANK
The following are the various products of Kotak Mahindra Bank: ➢ DEMAT&ONLINETRADINGACCOUNT: The 3-in-1 account integrates your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.
➢ INITIAL PUBLIC OFFERS(IPO’S) In the above products we have discussed investment in equity through secondar y markets .another way of investing in equity markets is through the primary market r oute .whenever a company comes out with an initial public offering you may choose to apply for the share. Based on number of valid application received, the company would then allot the share to applicants.
The offline way of investing in an IPO is by filling physical application forms, cheque s. And submitting the forms through your broker. With KOTAK MAHINDRA BANK all you have to do is filling number of share on the site and submi t.
➢ DERIVATIVES Customers with different types of risk profile can use derivatives. Hedging the cash market position – ideal for low risk profile. Taking advantage of arbitrage opportunity in equity and derivatives markets –ideal for low risk profile Taking a view on stock/index for as long as 3 month period – medium risk pro file Speculative trading-high risk profile KOTAK MAHINDRA BANK offers online investment in future and option, with benef it of automated settlements and online risk monitoring system
MutualFunds Key Features Assitance at every step of the investment process An experienced research team to analyse and research the Mutual Funds available in the market Portfolio assistance Team analyses and researches the Mutual Funds available in the market, helping you make more informed decisions. The recommendations take into account all relevant factors including the investment philosophy of the Asset Management Company, portfolio quality, risk-adjusted returns and market trends. The Mutual funds on advisory list range form Debt to Equity funds and are drawn from top performing schemes of renowned Mutual Fund houses like Franklin Templeton, Kotak, Reliance,
Prudential ICICI etc.Relationship Manager will
recommend
the
funds that
suit the
investment
objectives. Instead
of
buying
shares
of
different
companies
tracking
the
price moveme
nt’s performance of the company, growth prospects of the industries etc. and then ta king your own buy/sell decision, you may consider making investment in equity/deb t market through the mutual fund route. Mutual fund is a SEBI registered entity th at pools the money of many individuals’ investors to purchase the stocks, bo nd
or
other
financial
instruments
.professional
Management and diversification are the two primary benefits of mutual fund investin g. For beginners, or for customer who are unable to spend time on researching stock s themselves, mutual fund is an ideal route for a investment in equity. Investing in mutual funds offline involves, tracking down the age nts appointed by the mutual funds AMCs, filling lengthy forms, writing cheque, rushin g to the office of the agents before the cut off timing to ensure that the desired NAV is allotted
Bancassurance They offer a range of carefully selected insurance policies across the entire spectrum of life insurance products Relationship managers will analyze your insurance needs and develop the solution that works best for you. KOTAK INSURANCE has a wide array of insurance plans that have been designed with the philosophy that different individuals are bound to have differing insurance needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual that will depend on the age and life stage of the individual apart from a host of other factors. The various plans offered by KOTAK INSURANCE are as follows:
Kotak Smart Advantage Plan Kotak Eternal Life Plans Kotak Headstart Child Plans Kotak Safe Investment Plan II Kotak Flexi Plan Kotak Easy Growth Plan Kotak Capital Multiplier Plan Kotak Term Plan Kotak Preferred Term Plan
C O N V E N I E N CE B A N K I N G
“Anywhere, Anytime Banking”
In today's day and age time is money. You work hard and have a busy schedule. Doing banking should be easy and convenient and not add to worries. Kotak Mahindra Bank realize this and have specially tailored a wide range of value added products and services to make money work for you. These, coupled with the highest standard of customer care will make life simpler and easier.
➢ Multiple Banking Channels Today the technology driven banks are finding various means to reduce costs and reach out to as many customers as possible spread over a diverse area. This has led to using multiple channels of delivery of their products.
➢ ATM(AutomaticTellerMachine):
An ATM is basically a machine that can deliver cash to the customers on demand after authentication. However, nowadays we have ATMs that are used to vend different FMCG products also. An ATM does the basic function of a bank’s branch, i.e., delivering money on demand. Hence setting of newer branches is not required thereby significantly lowering infrastructure costs. Cost reduction is however possible only when these machines are used. In India, the average cash withdrawal per ATM per day has fallen from 100 last years to 70 this year. Though the number of ATMs has increased since last year, it is not in sync with the number of cards issued. Also, there are many dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also hold the keys to future operational efficiency Account holders of Kotak Mahindra Bank Saving Account having Visa Electron Debit Card can access other Banks ATM machines unlimited times per month for free, after that the Account holder has to pay nothing for the transaction. But also holders of ATM cards cannot access machines belonging to other Banks. The number of ATM machines installed by Kotak Mahindra Bank is 20 in Delhi and the All India tally is 156 machines. When this figure is compared to ICICI Bank which has thrice the number of machines in Delhi or HDFC Bank which has nearly twice the number of machines in Delhi, this is worrying for Kotak Mahindra Bank.
“GrowthInATMMachineWithIncreasedUse”
NAME OF BANK
NUMBER OF ATM MACHINES
(ALL
NUMBER OF ATM MACHINES
(DELHI)
INDIA BASIS) KOTAK MAHINDRA
122
26
Bank ICICI Bank HDFC Bank IDBI CITIBANK HSBC AMN Amro UTI GTB
560 625 350 160 103 40 507 250
112 66 43 22 21 13 20
The Table below shows the number of ATM machines belonging to various banks in India:From the above table we can clearly see that HDFC Bank is the Bank which has highest number of ATM machines on All India basis, this is followed by ICICI Bank, then UTI. When we look at the concentration of machines in the Delhi Region we see that out of ICICI Bank’s 560 Machines 112 are located in Delhi representing 20%. The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC Bank is 11.8%, IDBI Bank is 12.3%, and CITIBANK is 13.75%.
NetBanking: Net banking means carrying out banking transactions via the Internet. Thus the need for a branch is completely eliminated by technology. Also this helps in serving the customer better and tailoring products better suited for the customer. A customer can view his account details, transaction history, order drafts, electronically make payments, transfer funds, check his account position and electronically communicate with the bank through the Internet for which he may have wanted to visit the bank branch. Net banking helps a bank spread its reach to the entire world at a fraction of the cost
Phone Banking: This means carrying out of banking transaction through the telephone. A customer can call up the banks help line or phone banking number to conduct transactions like transfer of funds, making payments, checking of account balance, ordering cheques, etc. This also eliminates the customer of the need to visit the bank’s branch.
MobileBanking: Banks can now help a customer conduct certain transactions through the Mobile Phone with the help of technologies like WAP, SMS, etc. This helps a bank to combine the Internet and telephone and leverage it to cut costs and at the same time provide its customer the convenience. Thus it can be seen that tech savvy banks are tapping the entire above alternative channels to cut costs improve customer satisfaction
SMSBanking Kotak Mahindra Bank's SMS Banking service enables you to access your bank account, investment account and demat account on your Mobile Phone. Now get latest update on your account balance, salary credits, large debits, large credits, holding value and much more, on your mobile anytime.
INTERNETBANKING INTRODUCTION The Internet banking is changing the banking industry and is having the major effects on banking relationships. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance.
DRIVERS OF CHANGE Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a costeffective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. The primary drivers of Internet banking are: · Improve customer access · Facilitate the offering of more services · Increase customer loyalty · Attract new customers
Internet Banking is the most technological advanced means to do Banking. Through this medium the Account holder can do various types of transactions without having to leave his Office/Residence. The Account holder has the convenience to do transaction no matter where he is in the world at any time of the day. Internet is the most cost effective medium of Banking from the point of view of the Banks; it costs a fraction to the Bank as compared to other mediums like Branch Banking or ATM. But this medium is not as favored a medium as it in the west , the reasons for this is that firstly , this is a relatively new concept in India , secondly , general perception that this is not safe , thirdly , computers and internet are not widely spread all over the country.
MAINCONCERNSININTERNET BANKING In a survey conducted by the Online Banking Association, member institutions rated security as the most important issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. 1. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that account information is protected from unauthorized access: Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access the system. 2· Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected. 3· Digital certification procedures provide the assurance that the data you receive is from the Infinity system.
STRATEGICALLIANCESENTEREDBYKOTAKMAHINDRABANK NATIONALATMALLIANCES The Institute for Development and Research in Banking Technology (IDRBT), a group established by the Reserve Bank of India (RBI) in 1996, has planned to set up a national switch to hook up all of the country's 10,000-odd ATMs. The idea of establishing ATM interconnectivity through a national switch has been approved by the information chiefs of various Banks. The expected cost of transactions routed through the switch is to be under 10 rupees (21 cents U.S.) each, due to the high volumes of transactions -- almost 100,000 per day.
CASHNET It is an Alliance between Citibank, Industrial Development Bank of India, Kotak Mahindra Bank and UTI Bank. This is the country's first independent shared ATM network. IDBI Bank received permission from the Reserve Bank (RBI) to serve as the network's settlement bank. Cash net will give access to more than 1,300 ATMs for more than 6 million debit cardholders of the member banks. The Alliance would constitute about a third of the total card base and 15 percent of the ATM base in the country.
KotakMahindraBankandREDIFF.com REDIFF.com India and Kotak Mahindra Bank have entered into an alliance to provide online and offline banking and related services to the Indian consumer. The alliance will enable information on the entire range of the banks consumer banking products to be made available to the 6.4 million online customers of Rediff.com.
The services offered include detailed information on various deposits, loans and mortgages, credit cards, mutual funds and insurance products of the bank. Users will be able to directly interact with the bank and request for products online
OTHERSERVICES BANKINGHOURS Kotak Mahindra Bank Account holders have been able to infer that Branch Banking is the second most Frequent Point of Interaction with the Bank. The Average Banking Hours is a very important aspect associated with any Bank. In today’s fast paced life where people who hold Accounts with the Bank are busy working it is important that they can find a way to visit the Bank without having to miss out on work. The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm, the Bank is open to the public for ten hours. These timings are convenient for especially those Account holders who are working, these people can visit the Bank after their Office finishes. Apart from the Average Banking Hours Kotak Mahindra Bank offers to it’s Account holders 24 Hour Branch, 365 Days Branch and the facility of Sunday Banking.
Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in India, this is a big boon for people who cannot take the time out to visit the Bank during the normal working hours and is also very handy during emergencies.
The 365 Day Branch of Kotak Mahindra Bank is also unique and the only other Bank offering this service is ABN Amro , this Branch is open regardless of the fact that it is a Sunday or a public holiday. Sunday Banking is very useful for people who are busy throughout the week and the only day when they find the time is Sunday. Other Banks offering this service apart from Kotak Mahindra Bank are ABN Amro and CITIBANK.
BestComplimentsCard–theperfectgift Introducing Best Compliments Card - the prepaid card from Kotak Mahindra Bank. It lets your loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards, be it a shopping mall, a restaurant or a multiplex. So go ahead and give someone the perfect gift! No Kotak Mahindra Bank account required Not restricted to a single brand or outlet - accepted at over 3 lakhs merchant establishments in India that accept Visa cards Can be used at your convenience - no need to spend the entire value in a single purchase Attractively packaged and ready-to-gift Available at all Kotak Mahindra Bank branches Valid for two years from date of issue of card
Chapter- 3 RESEARCH OBJECTIVE
The objective of the research is: 1. 2. 3. 4. 5.
To know what type of facilities given by other banks To know the customer preference in current account and saving account To know what type of market strategies are used by the bank in the market To know how relationship can be maintained to the customer To know in which way the business enhancement can be done in current account and saving account 6. To know how customer profiling is being done 7. To know the criteria how the mapping of customer is being done 8. To do the financial planning of the customer 9. To know how the marketing of new products is being done in the present scenario. 10. To know how the revival of current account and saving account is needed to be done 11. To know how the operational work is done in the bank 12. To know what type of preference is needed to be given to high profile customer 13. To know how to interact with new customer 14. To know about schedule of charges in current and saving account 15. To know how to fulfill the overdraft facility of the existing customer
REASEARCH METHODOLOGY As the title of the project suggests the purpose to study the access of prudential in area like Lucknow. Research comprise defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating Hypothesis. In short, the search for Knowledge through Objective and Systematic method of finding solutions to a problem is Research.
SOURCESOFDATA Data is collected from primary as well as secondary source. And profiles given by the bank & then randomly members selected from total report given. For primary data customer were personally intervened and for secondary data. Annual report, journals, internet and personal interview.
METHODOLOGY The methodology adopted in conducting this survey was quite simple. First there was collection of data from various sources including personal interview. Then after scanning and properly analyzing and interpreting the information available on hand, a final report was prepare.
RESEARCHDESIGN Type of Research: - Descriptive research Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. The regular interaction with the Customers and the Line Managers revealed about the various strategies involved in performing business activities and gathering data using various techniques and software applications Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.
DATASOURCES There are two types of data: Primary data Secondry data
PRIMARYDATA The data that is collected first hand by someone specifically for the purpose of facilitating the study is known as primary data. So in this research the data is collected from respondents through questionnaire.
SECONDARYDATA
For the company information I had used secondary data like brochures, web site of the company etc. The Method used by me is Survey Method as the research done is Descriptive Research.
RESEARCHINSTRUMENTS Selected instrument for Data Collection for Survey is Questionnaire.
SAMPLESIZE The survey is conducted among 150 respondents. Simple statistical tools have been used in the present study to analyze and interpret the data collected from the field. The study has used percentile method and the data are presented in the form of diagrams.
REVIEW OF LITERATURE
This project was undertaken to know what exactly is the Financial Planning, How it is carried out ,Who carries it out, Why it is carried out, When it is carried out ,and the most important What is the benefit of carrying it out. Below my question were answered. Basically Financial Planning is the process of meeting life goals through the proper management of your finances. There is a need for financial planning because the financial situation in the country has changed in the last few years, this has changed in such a manner that it will be difficult for one to maintain a decent
standard of living with the current means this requires financial planning and in addition there are also several individual specific factor that has to be fulfilled. Financial planning provides direction and meaning to one’s financial decisions. The process involves gathering relevant financial information, setting life goals,
examining customer current financial status and then coming up with a plan for customer on how he can meet with his goals. Financial planning is a highly personalized service. It is not a product. It is a cyclical service that constantly repeats as client needs change over time. Preparation and implementation The process that is followed by of the financial plan is a long-term relationship and not a one-off exercise.the Kotak bank is the planner For the success of the financial planning exercise, it is essential that the prospective client first discuss the general recommendations with the client informally, this allows the clients to indicate their preferences and opinions on the options that have been designed. Once the planner and the client agree on the recommendations, a concise written proposal is prepared along these lines: Also remember that financial planning is a two-way interaction between the client and the An overview of the clients short and long term goals. The client’s current status in bank account and what customer expects from the bank and their RM. The client’s main things due to which client is lacking behind in the level of transactions. The financial plan for mutually selected recommendations. A comprehensive economic overview of the client’s needs, supported by financial statements. A step-by-step implementation and monitoring plan.
Financial planning of the customer This tool is basically used to analyze the customer and to recognize whether the customer is potential to carry on the business. The certification is also be taken by institute of financial planner in which all the details of the customer is needed to be examine carefully so that proper decision can be taken by the bank.
should have complete confidence in the financial planner s capabilities. Confidence is built when the planner can demonstrate adequate knowledge, technical depth and complete dependability. planner. It is not and should not be treated as a one-way prescription which is to be given by the planner to the client. Both the planner and the client have certain responsibilities to make the exercise a success.
The Planning Process:The preparation of the financial plan is a multi-dimensional process. It requires the planner to collect as much information as possible about the current resources, assets and liabilities of the client. The planner needs to analyze the collected information from a number of different aspects to develop an optimal financial plan. To prepare and implement a compr ehensive and effective financial plan, the Financial Planning Standards Board recommends the following 6-step process:Let us look at the above steps in more detail.
30
1. Establish the Client-Planner Relationship Before approaching a client, it is important for the financial planner to clearly understand his own role. The role of the financial planner is not to suggest get-rich-quick schemes. Rather, it is to evaluate and study the clients' needs, gather and analyze data and prepare a financial plan for now and for the future. Preparation and implementation of the financial plan is a long-term relationship and not a one-off exercise. A financial planner has to prepare a plan that helps his clients:¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾
Organize their finances Improve their cash flows Lower their personal income taxes Plan for their retirement Improve their investment performance Lower their investment risk Insure themselves appropriately and reduce insurance costs ¾ Minimize their estate settlement costs ¾ To achieve this, the planner needs to answer the following questions: What is the most immediate concern of the client? What is the client’s current financial situation? What are the client’s immediate and long-term needs? What is the gap between the client’s needs and the current financial situation? What services can you apply to the client’s needs? How would the client benefit from your service portfolio? What is the estimated time frame to complete the plan and accomplish goals? Is your role likely to be of an adviser, motivator, teacher, or director?
Client agreements and confidentiality clauses When a client utilizes the services of a financial planner, he/she shares financial and other personal information with the planner that is normally not shared with anyone else. The client-planner relationship presupposes a very high level of trust between the two parties. Consequently, the planner is under obligation to maintain utmost confidentiality of this information. To prevent unnecessary litigation and disputes in the future, it is recommended that the financial planner should enter into a client agreement which formalizes the relationship with the client and establishes the basis on which the service would be provided. Such an agreement is also referred to as the 'Letter of Engagement.'
2. Gather client’s data and determine goals and expectations The next step involves researching and collecting information that will help the financial planner design and implement a successful financial plan. There are two aspects to this exercise:(a) Understanding the client's current financial position. (b) Getting to know the client's financial goals, objectives and requirements. The first helps the financial planner understand where the client is at the moment and the second helps, the financial planner understands where the client wishes to go.
Formulation of Goals Financial goals are the milestones that the client hopes to reach with the help of his financial resources. These milestones could be concerning different aspects of life like:Saving for marriage / childbirth Buying a new car / house / electronic equipment Creating a corpus for retirement Creating a corpus for children's education Adequately insuring self and family Creating cash reserves for emergency usage etc. The financial planner should ensure that the goals are: Specific Realistic Measurable / Quantifiable in money terms; and To be achieved within a specific time period Once the client has stated clear, quantifiable goals for financial planning, the next step is to rank those goals in order of importance. This is necessary because most clients do not have the resources to fulfill all their goals. The financial planner must make it clear to the client that less important goals must be sacrificed or postponed to achieve the more important ones. This done, the financial planner needs to work out the amount of money available for achieving these goals. To achieve most financial goals, the client would need to start saving and investing appropriately. Therefore it is important for the financial planner to know where the money to invest will be coming from.
3. Analyze client’s objectives, needs and current financial situation Preparation of the Client's Personal Financial Statements Preparation of the Cash flow Statement and the Budget Prioritizing Goals The next step is to prioritize the financial goals of the client and work out the amounts that are required to be invested towards achieving these goals.
4. Develop appropriate strategies and present the financial plan A financial planner needs to develop appropriate strategies for the client in the following areas: ¾ Cash flow management ¾ Insurance planning ¾ Investment planning ¾ Retirement planning ¾ Income tax planning ¾ Estate planning
Evaluate Qualitative Factors Qualitative factors have a significant bearing on the financial plan for a client. The client's tolerance towards risk, investment preferences, current health status etc. need to be kept in mind while evaluating alternative Strategies
Cash flow management Cash flow management is the means for funding client’s goals in other planning areas, therefore generally it is the starting point of the planning process. Once the cash flow management plan is in place, the inflows have to be channeled in one of the three areas - expenses, reserves for emergencies and capital accumulation. Once your clients have planned to maximize income and minimize spending, they need the planner's help to plan for their insurance, investment, education, income tax, retirement, and their estate.
The Benefits of Financial Planning Financial Planning helps you give direction and meaning to your client’s financial decisions. It allows him to understand how each financial decision affects other areas of finance. For example, buying a particular investment product may help your client to pay off his mortgage faster or may delay his retirement significantly. By viewing each financial decision as a part of a whole, you may help your client consider the long term and the short term effects on his life goals. You will help them feel more secure.
Assessing your current wealth Net worth: - Your assets are the things that you own. You probably own assets that have many different forms, including cash, investments, personal property, real estate etc.
Definition:Your net worth is the difference between the totals of your assets and liabilities. In other words, if you sold all your assets for the values stated and paid off all your debts, the amount left over would be your net worth. The net worth of a person is a measure of a person’s financial position as of the date of the personal balance sheet. This relationship is shown below:
Items of Value - Amounts Owed = Net Worth
Worksheet: How to determine your net worth A. ASSETS Cash Bank Accounts
Amount (in rupees)
Fixed Deposits Cash surrender value of life insurance Cash surrender value of annuities Market value of investments Mutual funds Stocks Bonds Others Market value of house/real estate Investment Property Vehicle(s) Household furniture/appliances Jewelry/precious metals Collectibles Loan receivables Others Total Assets
B. LIABILITIES Credit card balances Bills outstanding Outstanding loan balances Taxes due Others Total Liabilities Net worth [assets – liabilities (A-B)]
Data analysis and practical representation of the plan A personal financial assessment is designed to help you evaluate your current financial position and your ability to achieve your objectives for the future. Your ability to maintain your lifestyle objectives for the future is determined by your investment capital and ongoing income. In analyzing your situation we need to consider what is achievable given your current position, and how we can take best advantage of the assets you have accumulated. This report has been prepared to assist in the analysis of your current financial position and to help you identify steps that you can take to achieve your personal financial goals and objectives. Although great care has been taken to ensure the accuracy of this report, it should be kept in mind that projections, by their very nature, are based on a variety of assumptions and as such it is likely that the actual results achieved will be somewhat different than illustrated. For this reason it is very important that you review your strategy on a regular basis to ensure its relevance to your changing financial position.
Date prepared: **june 2012
Mr. Dilip Singh Personal Details Self
Spouse
Name: Mr. Dilip Singh DOB: 24-Jun-1977; Age: 31 Employer: ABC Solutions Address:
Family Members Name Relationship
Contact Details
Name: Mrs. Seema Singh DOB: 23rd Apr 1978 Age: 30
Date of Birth
Residential Address vipul khand, gomti nagar 3/88 Phone number
Age (years)
Dependant
Seema
Wife
23-Apr-1978
30
Y
Khushi
Daughter
23-Oct-2005
3
Y
Simran
Daughter
24-Apr-2008
1 month
Y
Sanjay Singh
Father
-
68
Y
Financial Goals The following table lists your individual goals in today's value, when you expect to meet them and the expected rate of inflation.
Frequency Description
Goal (today's value) Rs.
Inflation rate
Start Year
End Year
Remarks
Retirement goal – Living Expenses
Monthly
30,000
5%
2027
2056
Khushi's school education goal
Annual
30,000
10%
2009
2022
Simran's school education goal
Annual
30,000
10%
2013
2026
Khushi's college education
Annual
48,000
10%
2022
2025
Simran's college education
Annual
48,000
10%
2026
2029
Khushi's professional
Single
10,00,000
10%
2026
2026
Simran's professional
Single
10,00,000
10%
2030
2030
Khushi's marriage goal
Single
4,00,000
5%
2028
2028
Simran's marriage goal
Single
4,00,000
5%
2032
2032
Primary home
Single
30,00,000
5%
2008
2008
15% will be paid toward down payment of the house and
Vacation
Single
20,000
5%
2009
2047
Every 2 years till your age 7
Assumptions:
1. Life expectancy for Mr. Sharma and Mrs. Sharma is age
Your Risk Level
80. 2. Retirement age of Mr. Sharma is 50 years. 3. An average annual inflation rate of 5% used in the analysis. 4. Savings account is expected to earn a 3.5% annual rate of return. 5. Liquid funds expected to earn a 6% annual rate of return. 6. Debt funds are expected to earn an 8% annual rate of return. 7. Large cap equity funds are expected to earn a 12% annual rate of return. 8. Mid cap equity funds are expected to earn a 14 % annual rate of return. 9. Education expenses are expected to increase at 10% per annum.
Following our discussions regarding your investment objectives and the completion of the risk profile questionnaire, you are estimated to have a Moderate Profile.
NET WORTH
ASSETS Amount Rs. Liquid Assets Savings account 121,000 Liquid funds 0 Total 121,000 Financial Assets Fixed interest investments 0 Mutual funds 206,089 Direct equity 60,260 Cash value of life 0 insurance policies Employee stock option plan 0 (ESOP) Total 266,349 Tangible Assets Real estate 0 Other assets (e.g. Art, Coin 0 and Stamp Collections) Total 0 Personal Assets Primary house 0 Vacation home 0 Car/Vehicle Jewellery Other personal assets 0 Total 0 Retirement Assets Provident fund 200,000 Superannuation 0 Gratuity 0 Public provident fund 100,000 Cash value of pension plan 0 Total 300,000 Total Assets 687,349 Liabilities & Net Worth Outstanding Loan Home loan 0 Vehicle loan 198,712 Personal/Credit 163,709 card loan Education loan 0 Total Liabilities 362,421 Net Worth (total assets-total liabilities)
324,928
% of Total
18%
39%
0%
0%
44% 100%
0% 29% 24% 0% 53% 47%
Projected cash flow - Cash Flow Current Amount (Rs) Description
% of Annual total income
Income SalaryFixed(CTC)
Expenses Living Expenses Household expenses House rent Education expenses Total Income
Monthly
10,00,008
Salary-Variable Income from business/profession Pension Rental income Investment income Other income Total Income 100%
% of total income
83,334
0 0
Annual
0 0 0 0 10,00,008
0 0 0 0 83,334
4,03,200
33,600
0 0
100%
0 0
4,03,200
Monthly
10,00,008
0 0
0 0 40%
Recommended Amount (Rs)
33,600
40%
83,334 0 0
0 0 0 0 10,00,008
0 0 0 0 83,334
4,03,200
33,600
0 0
0 0
4,03,200
33,600
Loan EMI's Home Loan Vehicle loan Personal loan/Credit card Total
0 76,152 1,18,656
0 6,346 9,888
19%
0 76,152 1,18,656
16,234
1,94,808
1,94,808 Insurance Premiums Life insurance
0 6,346 9,888 16,234
19%
26,647
49,839
4,153
2,221 Health insurance Motor insurance Home(content) insurance Home(building) insurance
3,575 0 0
298 0 0
3,575 0 0
298 0 0
0
0
0
0
Other insurance Total
0 3%
30,222
0
0
2,519
53,414
0 4,451
Other Expenses Travel and vacation
0
0
0
0
Charity
0
0
0
0
Others
0
0
0
0
Total
0%
0
0 0
0
0%
Contribution to Emergency Fund Taxes Salary-Fixed Salary-Variable Income from business/profession Pension Rental income Other income Total
8%
75,822 0 0
6,319 0 0
0 0 0 75,822
0 0 0 6,319
Excess(shortage)before savings Savings Contribution to Retirement assets PF(employer’ 4% 42,001 contribution) PF(employee' 4% 42,001 contribution) Superannuation 0% 0 Gratuity 2% 16,801 PPF 0% 0 Other Committed Savings Excess 20% 1,95,153 (shortage) after Savings
75,822 0 0 0 0 0 75,822
6,319 0 0 0 0 0 6,319
8%
3,500
4%
42,001
3,500
3,500
4%
42,001
3,500
0 1,400 0
0% 2% 0%
0 16,801 0
0 1,400 0
16,263
17%
1,71,961
14,330
Create and maintain an adequate emergency fund You must ensure that you are adequately prepared for unexpected events in the short-term by creating an emergency fund equal to three to six months of living expenses. This will enable you to pay for costs that are not covered by insurance, as well as any kind of urgent expenses. You have Rs. 1.21 lakh in your savings account. You are advised to maintain Rs. 50,000 (approximately one month of your expenses) as an emergency fund. Though one must keep at least 3-6 months of living and committed expenses in emergency fund. However, you have an immediate goal of house purchase in the year 2008. You are advised to build and maintain an emergency fund gradually (after you have acquired the immediate goal – home purchase) to an equivalent amount of Rs. 1.50 Lakh over time.
Your Emergency Fund Category Total
Amount in 1,21,00
Amount transferred from savings account to investment
71,00
Savings account amount allocated to emergency fund
50,00
Investment Planning Current Asset Allocation
Asset allocation is the cornerstone of good investing. Each investment included in your portfolio must be of an overall asset allocation strategy and this plan must be genetic (one-size-fits-all), but rather must tailored to your specific needs. Based on the information that have provided, the current asset allocation if your portfolio is:
Asset Class Cash
Amount (Rs) 71,000
% of total asset 16.23%
Liquid funds
0
0.00%
Fixed interest instruments
1,00,000
22.87%
Equity Total
2,66,349 4,37,349
60.90% 100.00%
Recommendation You must consider buying a family floater scheme worth sum assured Rs. 3 Lakh. This will cover you, your spouse and your child. The estimated annual premium is Rs. 3,575. (Source: Reliance Health Silver Plan)
Recommendation: Funding available towards your home purchase goal Down payment of 15% of the value of home through the Investment Portfolio Bank loan for funding the balance of Rs. 25.50 Lakh. 1. Down payment of Rs. 4.50 Lakh through the Investment Portfolio as follows: Savings account – Rs. 71,000 must be utilized Mutual funds – Rs. 2.07 Lakh Surplus of year 2008 – Rs. 1.71 Lakh 2. Bank loan for funding the balance Rs. 25.50 Lakh.
Description
Year
Annual Estimated EMI in Rs.
Annual Income
2009-2023
3.04 Lakh
Note: Please note that our analysis shows that in the year 2009, the annual income surplus is not expected to support the EMI in the year 2009 by Rs. 96,000. However, as you will get tax benefits under section 24(b) for the interest portion paid towards home loan, you will be able to meet the EMI expense by the Money saved on taxes.
Goal: Khushi’s Education Observation You need to plan for the following education expenses of Khushi's in today's value. 1. School education of Rs. 30,000 per annum starting in the year 2009 till the year 2021. This is expected to grow at 10% per annum. 2. College education expenses of Rs. 40,000 per annum (in today's value) between 2022 and 2025. 3. Professional education expense of Rs. 10 Lakh in today's value in the year 2026.
Analysis Based on your current situation, you can meet the above mentioned goal to the extent as mentioned below:
Amount in Rs. (in future value) Year
Goal Amount (Desired)
School education expenses
2009-2021
Rs. 30,000/year
College education expenses
2022-2025
Rs. 1.1 crore/year
Professional education expense
2026
Rs. 55.59 lakh
Goal Amount (Achievable) Rs. 30,000/year (grows at inflation rate of 10%) Rs. 1.1 crore/year (grows at inflation rate of 10%) Rs. 55.59 lakh
Recommendation You should consider utilizing the following sources of cash to help you fund your goal as per our analysis. 1. Regular annual income surplus to fund the school education – We have treated the school and college expense as a regular expense and deducted this from your cash flow every year. Your annual income surplus during the years 2009-2025 is expected to support the education expenses as mentioned above. 2. Investment from the Annual surplus in the recommended portfolio to fund college and professional education expenses
Description
Year
Investment from annual surplus
Amount to be invested (Rs.)
2011-2025
1.48 Lakh
Note: The Investment is expected to be made in the recommended asset allocation which is expected to generate 10.80% per annum. Observation You need to plan for the following education expenses of Khushi's in today's value. 1. School education of Rs. 30,000 per annum starting in the year 2013 till the year 2025. This is expected to grow at 10% per annum. 2. College education expenses of Rs. 40,000 per annum (in today's value) between 2026 and 2029. 3. Professional education expense of Rs. 10 lakh in today's value in the year 2030.
Analysis Based on your current situation, you can meet the above mentioned goal to the extent as mentioned below:
Year
Amount in Rs. (in future value) Goal Amount Goal Amount
School education expenses
2013-2025
(Desired) Rs. 30,000/year
College education expenses
2026-2029
Rs. 2.66 Lakh/year
Professional education expense
2030
Rs. 81 Lakh
(Achievable) Rs. 30,000/year (grows at inflation rate of 10%) Rs. 2.66 Lakh/year (grows at inflation rate of 10%) Rs. 81 Lakh
Recommendation You should consider utilizing the following sources of cash to help you fund your goal as per our analysis. 1. Regular annual income surplus to fund the school education – We have treated the school and college expense as a regular expense and deducted this from your cash flow every year. Your annual income surplus during the years 2013-2025 is expected to support the education expenses as mentioned above. 2. Investment from the Annual surplus in the recommended portfolio to fund college and professional education expenses.
Description
Year
Amount to be invested (Rs.)
Investment from 2011 2012 2013 2014-2027
2010-2011 43,939 1.24 lakh 1.06 lakh 1.58 lakh
88,782 annual surplus
Note: The Investment is expected to be made in the recommended asset allocation which is expected to generate 10.80% per annum. Observation Khushi's is expected to get married in 2028. You need to plan for the following expenses in today's value. 1. Marriage expenses of Rs. 4 lakh (today's value) in the year 2028.
Analysis Based on your current situation, you can meet the above mentioned goal to the extent as mentioned below:
Amount in Rs. (in future value) Year Marriage expenses
2028
Goal Amount (Desired) Rs. 10.61 lakh
Goal Amount (Achievable) Rs. 10.61 lakh
Recommendation You should consider utilizing the following sources of cash to help you fund your goal as per our analysis. 1. Regular annual surplus Description
Year
Annual Income
2015-2027
Amount to be invested (Rs.) 37,035
Observation You need to plan for following expenses in today's value: 1. Domestic - You wish to spend Rs. 20,000 on vacation every 2 year.
Analysis Amount in Rs. (in today's value) Description
Domestic
Year
2009-2047
Estimated Amount
Inflation rate
Goal Amount
(Desired) 20,000
(Assumed) 5%
(Achievable) 20,000
Recommendation In our analysis, we have taken the above expense as an annual regular expense and your cash flow is supporting this expense from your annual income surpluses from 2009-2047.
Observation The probable year for your expected 2nd child to get married is 2032. You need to plan for the following expenses in today's value. 1. Marriage expenses of Rs. 4 Lakh (today's value) in the year 2032.
Analysis Based on your current situation, you can meet the above mentioned goal to the extent as mentioned below:
Amount in Rs. (in future value) Year Goal Amount (Desired) Marriage expenses on
2032
Rs. 12.90 Lakh
Goal Amount (Achievable) Rs. 12.90 Lakh
You should consider utilizing the following sources of cash to help you fund your goal as per our analysis.
1. Regular annual surplus Description
Year
Amount to be invested (Rs.)
Annual Income Surplus
2014-2031
26,630
Note: The Investment is expected to be made in the recommended asset allocation which is expected to generate 10.80% per annum.
Observation You intend to retire at age 50. After retirement you need to plan for the following expenses in today's value. 1. Annual household expenses of Rs. 3.60 Lakh in today's value between 2027(your retirement year) and 2056 (life expectancy).
Analysis Based on your current and projected financial situation you cannot meet the above mentioned goals due to retirement at age 50.
Amount in Rs. (in today’s value) Year Annual household expenses
2027-2056
Goal Amount (Desired) Rs. 9.55 lakh per annum
Goal Amount (Achievable) Rs. 9.55 lakh per annum
Note: You are contributing every month Rs. 3,500 towards to Provident Fund and Rs. 1,400 per month towards Gratuity. In our analysis, expected growth rate of PF and Gratuity is 8% per annum. Also there is a contribution from your employer of Rs. 3,500 per month towards your Provident Fund account.
Recommendation You should consider utilizing the following sources of cash to fund your retirement goal as per our analysis: 1. Retiral assets 2. Insurance maturity proceeds 3. Annual income surplus to be invested in recommended asset allocation
1. Retiral assets Description
Year
Estimated accumulated amount
Provident fund and Gratuity fund
2027
52.42 akh
2. Insurance maturity proceeds Description
Maturity Year
Estimated maturity proceeds
LIC Jeevan Anand
2029
5 lakh
Note: We have not taken the non-guaranteed portion i.e. bonus, we have only taken the guaranteed part.
3. Annual income surplus to be invested in recommended asset allocation to fund the balance of retirement goal: Description Annual income surplus
Year 2014
Amount to be invested (Rs.) 10,970
2015
12,972
2016
117,725
2017
167,617
2018
290,647
2019
353,947
2020
498,710
2021
578,534
2022
670,463
2023
762,740
2024
1,295,626
2025
1,411,208
2026
1,970,708
2027
17,68,991
Note: All the above surpluses have been allocated towards your retirement goal, this is done after funding the other goals such as Khushi's marriage, education, etc.
NEXT STEPS Goal/Needs
Next Step
Life Insurance
You are advised to buy an additional term life insurance policy worth Rs. 1 crore. The annual estimated premium is expected to be Rs. 23,192 for a term of 20 years. (Source: HDFC Term Life Insurance Policy). You must consider buying a family floater scheme worth sum assured Rs. 3 Lakh. This will cover you, your spouse and your child. The estimated annual premium is Rs. 3,575. (Source: Reliance Health Silver Plan)
Health Insurance
Recommendation for existing investment
Savings account to be used for maintaining an emergency fund Current savings account balance is Rs. 1.21 lakh. You need to maintain an emergency fund of Rs. 50,000 where the money is easily accessible and liquid to meet any unforeseen contingencies. Balance must be utilized towards the home goal.
Fixed interest investments: Retain the PPF till its maturity date. Then, invest the maturity proceeds in the recommended portfolio. We have allocated this investment towards your retirement goal.
Mutual funds: You may liquidate this and fund the down payment of the home goal in the year 2008. If you are not liquidating this then you have to arrange additional source of fund for the down payment of the house goal
Recommendation for current annual surplus – Year 2008
Estate Planning Car goal
Current annual surplus for year 2008 is expected to be approx. Rs. 1.71 Lakh. This amount is expected to be directed towards the down payment of the home goal. You must invest the monthly surplus for the next 6 months in capital preservation funds as this is needed for down payment within 6 months. We recommend that you must consider writing a Will within the next 1 year. You are advised to avail the car lease option provided by your company for a new car. You are having a car loan liability as of now. Your Relationship Manager will discuss about the car lease facility in detail vis-a-vis your existing car loan liability.
Scope of Study
1. Access the Potential customer of Kotak Mahindra Bank Saving Account and current account with the help of a survey conducted on a total of 80 Respondents (50 existing customer’s specially in current account). 2. To use those tools through which we revive the account of the existing customers and to know the reversal of the charges. 3. To manage the existing customers as well as to enhance the business so that there can be overall increment in the business of the bank. 4. To understand the time constraints of the relationship manager 5. Overall understanding of the customer can be taken by doing financial planning of the customer. 6. To understand the major tools of investment on which bank is working. 7. To understand which type of customer will open saving accounts. 8. To take an overview of the client s in short and long term goals. 9. To study the client s financial objectives anchored to current resources. 10. To suggest appropriate financial plan for mutually selected recommendations. 11. To give a detailed summation of all recommendations. Most important is to understand that the suitability of the products you are guiding people to purchase is based on their risk appetite, age and time frame goals and objectives. Relationship manager needs to update themselves constantly on new products, services and tax laws that might be good for their clients. This is a field that requires lifetime continuing education.
LIMITATIONS The study could not be made that comprehensive due to time constraints. Some customers feel uncomfortable to reveal some personal information relating to income, Privacy etc. it might have happened that some more essential information could have been collected. Time constraint. Biases and non-cooperation of the respondents. Financial constraint. Geographical selectivity in study limiting to lucknow city only. People are not interested in giving personal opinion.
Swot analysis Strength: 1. Home banking facility. 2. Relationship management at a good level 3. Reversing back of charges for the existing customers under CASA revival scheme. 4. Better working environment for the employees.
Weakness: 1. False promises done to the customers. 2. Proper interaction of the customer is not done by the relationship manager. 3. No proper information to customer about the new schemes is not given.
Opportunity: 1. Better brake for the fresher is there. 2. It creates new skills and better employee for future and helps in overall development of the employee.
Threats: 1. Very hectic schedule for the employee. 2. It becomes very unmanagefull for the relationship manager to maintain their relationship with the existing customers.
Chapter-4
ANAL YS IS AND F INDI NGS Survey Conducted on 155 Respondants DURATION WITH BANK
The study of 50 Kotak Mahindra Bank respondents consisted of a majority of customers who had been with the Bank for a reasonable amount of time. This is good as these customers have had the opportunity to properly access the service level of the Bank, and can compare their experiences of Kotak Mahindra Bank with banks they have previously and are currently dealing with. Out of the total respondents only 3% have been with the Bank for less than 6 months, the rest 97% have had the opportunity to know about the strengths and weaknesses of the Bank. Another inference that we can draw from this study is that couple of years the Bank has been actively acquiring new customers as from the survey we can see that about 80% of the customers have opened their accounts during the past two years. The reason for this could be that during the past two years the Bank has been able to convince many prospective customers about the superior service it is able to offer in comparison to competing Banks. Another reason could be that the customer base of the Bank has increased due to sheer word of mouth of the Banks millions of satisfied customers.
REASON FOR CHOOSING BANK
If the Bank could get to know of that very compelling factor that convinced the customer to open the account then the Bank could use this in its favor to attract more customers. From the study conducted the factor which has come out strongest in this regards is the “Other Reasons” getting 44% of the responses, going deeper into this response by asking the respondent what is the factor they include in this Other Reasons is that most people are not the deciding factor
when they open a saving account, this is done so by their employers. The customer’s salary accounts are created by the companies in which they work.
MOST FREQUENT POINT OF INTERACTION WITHTHEBANK
The Banks are very interested to know the most popular Point of Interaction with the Bank as if the Bank is lacking in one of these steps can be taken to make the situation better. From the study we can see more than half (more than 50%) of the total respondents feel that they interact most with the Bank with the help of ATM. Hence the importance of ATM cannot be overstated. The Second most popular point of interaction that arises from the study is the Branch with 32% of the respondents favoring this option. Kotak Mahindra Bank is unique in an aspect that it follows the “Any Branch Banking” wherein the Account holder can use any of the Banks 156 Branches all over the country. An aspect that customers really appreciate is the 24 hour Branches and the 365 Days Branches of Kotak Mahindra Bank. The 24 Hour Branch of Kotak Mahindra Bank is located at sector 18 noida apart from these Branches in Mumbai and other cities in India. Kotak Mahindra Bank is the only Bank which has the facility of a 24 Hour Branch. As for a 365 Day Branch the only Bank having this facility apart from Kotak Mahindra is UTIBank.
The third most Frequent Point of Interaction is Phone Banking with 11.5% of the respondents favoring this medium. Phone Banking is one of the new age Banking techniques. It is in it’s infancy in India and people have not taken to it as is the case in other Developed Countries in the World. In the study it was seen that customers have mixed feeling when it comes to Phone Banking as sometimes they do not find it as an effective alternate to traditional forms of Banking. The forth most Frequent Point of Interaction with the Bank is Internet Banking with 4% of the respondents favoring this medium. Internet Banking is the most modern means of Banking
available to the customers but due to the general perception that this medium is not safe it is not used by many people. In our study only 60% of the total respondents have at least once used Internet Banking. The two options which were not favored by any respondents as the most Frequent Point of Interaction are Drop Box Facility and Door Step Banking .
OVERALLSATISFACTIONLEVEL
Any service provider would want their customers to have a high Overall Satisfaction level. Kotak Mahindra Bank has scored very well in this regard. The most important thing is that no respondent has complained that they are overall dissatisfied with the bank. This is a very important finding because this shows the effort Kotak Bank puts in providing their customers a superior service has not gone waste. More than half of the total respondents (52%) say that they are somewhat satisfied with the overall service of the Bank. About 30% of the total respondents say that they are Very Satisfied with their Overall Experience with the Bank. Hence about 82% of the Respondents are Satisfied with their Overall Experience with the Bank. The study is showing a very good Overall Satisfaction Level by the Account holders
SATISFACTIONLEVELWITHBANKSTAFF Banks are institutions which are backed up by a large amount of capital; today’s Banks are spending a huge amount of money on technology, improvement in infrastructure, etc. But even
today the most lasting impact about any Bank comes from the customers experience with the Bank Staff. Any paining experience can have a lasting impact on the mind of the customer, this can force him to change Banks or even discourage others from joining the Bank. Hence Banks should train their employees to maintain good relations and be cooperative with the customers. From the results of the findings we can see that Kotak Mahindra Bank has been successful in marinating a high level of customer satisfaction with the employees. Only 4% of the total respondents included in the study were dissatisfied. The number of respondents who were Very Satisfied represented 30% of the total respondents while those who were Somewhat Satisfied were 46% of the total. The respondents who were Neither Satisfied nor Dissatisfied are 20% of the total.
SATISFACTIONLEVELWITHBANKINGHOURS(10amto7pm)
From the analysis of the data that has been collected from Kotak Mahindra Bank Account holders we can see that majority of the respondents are satisfied with the Average Banking Hours.
The respondents who are Somewhat Satisfied with the Banking Hours consist of 44% of the total, while 28% of the total respondents studied say that they are Very Satisfied. In all 72% of the total respondents are satisfied with the Banking Hours of Kotak Mahindra Bank. The respondents who are neither Satisfied nor Dissatisfied consist of 20% of total number studied, while 8% of the respondents are somewhat dissatisfied.
THE RESULTS OF A GENERAL SURVEY WHICH WAS CONDUCTED ON10 DIFFERENTBANKSISASFOLLOWS BANKSSTUDIED This study involved mainly Banks operating in the Private Sector, there are some Banks from the Public Sector but these are at a relatively lower proportion. The Private Bank include both Indian and Foreign Banks, the Indian Banks included ICICI Bank, HDFC Bank While the Foreign Banks apart from Kotak Mahindra Bank studied included CITIBANK, HSBC, ABN Amro.
The Government Banks included most noticeably State Bank of India (India’s Oldest and largest commercial Bank) , Bank of Baroda , apart from other Banks.
MOSTIMPORTANTQUALITYINABANK From the survey of more than hundred respondents belonging to different Banks we can to the conclusion that Efficient Service offered by Banks is considered most important by account holders , 62% of the respondents felt that the Bank should concentrate more on this service aspect. The next aspect which is considered highly important by the Account holders of various Banks is the Staff of the Bank. It is true that today’s Banking far less of Branch Banking as it was the case a few years ago , today Account holders have a constant interaction with non-human interface like
ATM machines , Internet Banking , Drop Box , Even phone Banking when customers do not interact in a face to face manner with the Bank employees. But in the minds of the respondents it is very important that the Staff the Bank employs should be cooperative, courteous and qualified to solve the various problems of the Account holders.
The percentage of respondents favoring Staff quality as most important was 26% of the entire sample size. The most frequent point of interaction with the Bank is ATM facility, the Account holders whether in Private/Foreign sector or the Government sector have been provided with ATM facility by their respective Banks. To judge the performance level of any Bank today it is crucial that the ATM service of the Bank be studied, this includes not only the number of ATM machines installed by the Bank , but also how technologically advanced the machines are (number of transaction that can be done with the ATM Facility), the effort Bank undertakes to maintain the machines and also the overall experience of the Account holder with the service. The percentage of respondent considering the ATM service as most important were 12% of the total sample size. But from the respondents who were questioned none of them said that the Décor/Ambience of the Bank Branch was most important. On further Questioning it was revealed that they did want well-maintained Branches/Other Bank Interaction points but this was not the most important aspect.
PRIVATEBANKSPROVIDESUPERIORSERVICESCOMPAREDTO GOVERNMENTBANKS? The general perception is that the service quality of Private Banks is superior to that offered by Government sector Banks; we wanted to study whether this is a true phenomenon or whether this was just hearsay. The most important findings would come from the group of respondents who hold Saving Accounts with both Private and Government run Banks, as these people would be in the best position to judge the service offered by the Banks.
According to this group of respondents the Range of Products that are offered by Private sector Banks are much more diverse than those offered by Government Banks. Also these respondents felt that the Banks in the Private sector were much more flexible than their Government counterparts when dealing with customers were concerned. Private sector Banks are much more proactive when it comes to offering it’s customers new-age methods of Banking like ATM Facility , Internet Banking , Phone Banking, These services make the life of Account holders much easier. Another major difference that comes to most of the respondents minds when comparing the Private and Government sector Banks is the Staff Attitude towards the customers. Sure Private sector Bank Account holders have had problems dealing with Bank Staff, but they still feel it is much better than how Government employees behave. These Government employees show as if they are doing a favoring on the customer when they do their job. Private sector Bank customers are offered many freebies and incentives to remain with the Bank, or try new products of the Bank. This is never the case with Government Banks. Overall the result of this question very clearly states that people consider the service level of Private Banks much higher than Government Banks as 79% of the respondents agree and only 21% of the respondents disagree.
CONCLUSION 1. Kotak Mahindra Bank is Leading Bank in the country, it
provides a variety of products and services
to different segments of customers. 2. The Bank aims to serve customers from teenagers to senior citizens, hence different products designed to suit specific requirements of the above. 3. Aims to serve all classes of the society from the salaried middle class to the high income business class. Customers are categorized and segmented according to their requirements and needs. For Example, the EDGE Saving Account aims to serve middle class customers so minimum balance required to be maintained is Rs. 10000. While the PRO and ACE Saving Accounts are targeted at high income customers, the minimum balance requirement is Rs. 20000 and Rs. 75000. 4. Customers who are more profitable to the Bank (High Value Customers) are provided special facilities. Priority Banking is meant to serve these high value customers. 5. The Bank prides itself with the ability to provide differentiate products in the crowed market of saving accounts. Bank offers the free home baking, special co-branded debit cards (Smart fill Debit Card) which makes its product unique. 6. The Bank is also involved in marketing activities which serves as a medium of advertisement for the Bank. These are as follows: Extended happy hours at certain pubs in lucknow for the Bank’s account holders. Gift Vouchers on making utility payments, such as cell phones, electricity and MTNL bills. Free Gifts like caps, pens/wallets to its customers. Free add-on cards for relatives.
7. The Bank wants it’s customers to transact more through Internet Banking and ATM, Rather than the customers using the branch. 8. The Debit Cards provided by the Bank are Internationally Accepted around the world, hence giving the customers the convenience to transact anytime, anywhere. 9. The Bank has tied up with other Banks so that it’s customers can use other Bank’s ATM facility for free transactions 10. The Bank also provides DEMAT account and also sells Mutual Funds, this provides the Bank and Government additional revenue. 11. The Bank has been very successful in enlarging its customer base during the last couple of years. 12. The Number One Reason of people choosing Kotak Mahindra Bank is the Brand Name/Reputation of the Bank. Hence it should be careful that the Brand name and Goodwill the Bank has earned is not diluted. 13. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank and STANDRAD CHARTERED. 14. ATM Facility is most popular way to transact with the Bank. 15. Overall the customers appreciate the service and products offered by the Bank and are willing to recommend the Bank to their acquaintances, But more attention has to paid towards: Increasing the number of ATM machines. Improving Internet Banking Facility.
GENERAL FINDINGS 1. ATM Facility is more widely used by customers belonging to Private/Foreign Banks as compared to Government Banks. 2. Customers value Efficient Service over every other aspect, this is far more important than the number of ATM machines, Staff, Décor of Bank. 3. Reputation of Bank is most important when it comes to choosing especially a Private Bank. 4. The general perception is that Private Banks provides better services as compared to a Government Bank. 5. People realize that Private Banks are as safe as compared to Government Banks. 6. Advertisements and Freebies can be used to attract more customers.
QUESTIONNAIRE
NAME ADDRESS AGE Below 25 years
25 to 40
40 to 55
Above 55 years
OCCUPATION Business
Professional
Service
Student
Others
ANNUAL INCOME Less than 1.5 Lakh
1.5 Lakh to 3 Lakh
3 Lakh to 4.5 Lakh above 5
Lakh 1. Apart from saving in a bank account where do you invest your money? Land/Property Capital markets (shares, mutual funds, etc) Jewellery Others (please specify)
2. Do you get an ATM/debit card facility from your bank?
Yes
No
6. How many times a week does you use your ATM/Debit Card? Less than 2 time a week 2 to 4 times a week More than 4 time a week 7. What is your most frequent point of interaction with the bank? Visit Branch ATM Phone Banking Drop Box Internet Banking 8.Do you believe that Private/Foreign banks provide superior services than nationalized banks? Yes No 9. Do you agree with the view that your money would be safe from net banking services. Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 11. Do additional schemes/benefits (free insurance, free debit card, privileges/discounts on use of debit card, etc.) offered by banks have a bearing on your decision when you open a saving bank account? Yes
No
BIBLIOGRAPHY There was immense need and flow of the information while conducting the analysis as well as while writing the thesis report, which was gathered through various sources mentioned below:
Various Magazines and Newspapers such as Outlook Financial Times The Economic Times The Times of India The Hindustan Times
Other References Questionnaires, Journals, Broachers and various other documents gathered and collected from bank and various other sources such as ATM centers and associates.
Internet www. Kotak Mahindra Bank. com www. Kotak Mahindra Bank.co.in www.google.com www.economictimes.com
SYNOPSIS The central bank of India is the Reserve Bank: most large commercial banks were nationalized in 1969, with more being nationalized in 1980. The Department of Banking at the Ministry of Finance controls all banking. The State Bank of India, the largest commercial bank, handles some of the Reserve Bank’s roles. Cooperatives and credit societies are an important supplement to the private banking industry, especially in rural areas. The Entry of Foreign Banks in the Early 1990’s has brought about a Revolution in the Banking industry. The superior service levels of these Banks have forced even the Nationalized Banks to wake up to the reality that if they do not live up to the customer’s expectation they will soon cease to exist. Indian Banking Industry today is in the midst of an IT revolution. A combination of regulatory and competitive reasons has led to increasing importance of total banking automation in the Indian Banking Industry.
Earlier profitability gained only secondary importance, since banks lived in the comfort of a controlled environment. However, today banks cannot survive only with the Government support. They have to set goals of profitability along with service and set targets and evolve strategies to reach them.
There is certainly a paradigm shift in banking in India in the recent past. At present profitability, capital restructuring and transparency is considered important and significant for banks. Also, banks in India have started realizing the need to be ‘customer focused’ that in turn leads to ‘customer appreciation’, which is imperative for survival and growth. The first change along this line was brought in by the foreign banks with their emphasis on high quality and efficient service combined with technological advantages like satellite banking and tele- banking manned by skeletal staff and lesser number of branches. Further, development of special manpower, innovative products, technology exploitation and personalized services play a crucial role on the banking industry today, since the customer has more options in choosing bank. Thus leading to consumerism in the banking sector. Also, since customers are becoming more sophisticated and educated, their expectation from the neighborhood bank is increasing. To sum, the new private sector banks are poised to redefine banking sector in India. Though they don’t
pose a threat to the existing private banks they will certainly force them to gear up their strategies to remain in the field. The last few years have seen a sea change in banking strategies, with more focus on quality. The adoption of a specialized customer-oriented focus is fast getting wider acceptability. In a market that keeps growing in depth and diversity, niche banking is new mantra adopted by all. Thus, instead of targeting an entire market segment, banks have adopted a specific business focus to reach their target audience.
Over the last few years, the communication style too has changed with respect to the banking industry. Communication has shifted from branding the bank to branding banking products, highlighting service commitments, convenience, etc. Further, branding of banking products such as home loans, consumer durable loans, tele banking, ATMs, net banking etc have started taking place, especially after the entry of foreign banks and private sector banks which had the advantage of the latest technology.
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