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Think Investment. Think Kotak.

Chapter-1 Introduction 1.1 Introduction to banking


(i) Early history Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honour belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre.

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Think Investment. Think Kotak. The Bank of Bengal, which later became the India. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalized banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

[source: - www.indiatimes.com]
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Think Investment. Think Kotak. (ii) Structure of banking system

[source: - www.indiatimes.com]
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Think Investment. Think Kotak. (iii) Post-independence The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.
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In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 July 1969.

[Source: - www.indiatimes.com]
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Think Investment. Think Kotak. (iv) Nationalization By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalize the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalized the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

[Source: - www.indiatimes.com]
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Think Investment. Think Kotak. (v) Liberalization In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%, at present it has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 46-4 method (Borrow at 4%; Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People not just demanded more from their banks but also received more. Currently (2007), banking in India is generally fairly mature in terms of supply, product range and reacheven though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&as, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

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Think Investment. Think Kotak. In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

(vi) Reserve Bank of India (RBI) Reserve Bank of India (RBI) is the central bank of the country and is different from Central Bank of India. The central bank of the country is the Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the beginning. The Government held shares of nominal value of Rs 2, 20,000. Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the Interests Of co-operative And Indigenous banks. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following:
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To regulate the issue of banknotes To maintain reserves with a view to securing monetary stability and To operate the credit and currency system of the country to its advantage.

[Source: - www.indiamart.com]
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1.2 Introduction to Kotak Mahindra Bank


(i) History Established in 1985, the Kotak Mahindra group has been one of India's most reputed financial conglomerates. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval created banking history since Kotak Mahindra Finance Ltd. is the first non-banking finance company in India to convert itself in to a bank as Kotak Mahindra Bank Ltd. Today, we are one of the fastest growing bank and among the most admired financial institutions in India.

(ii) Senior Management

Mr. Uday S. Kotak Executive Vice Chairman & Managing Director Mr. Uday Kotak, B.Com, MMS (Masters in Management Studies), aged 50 years, is the Executive ViceChairman and Managing Director of the Bank, and its principal founder and promoter. Mr. Kotak is an alumnus of Jamnalal Bajaj Institute of Management Studies. In 1985, when he was still in his early twenties, Mr. Kotak thought of setting up a bank when private Indian banks were not even seen in the game. First Kotak Capital Management Finance Ltd (which later became Kotak Mahindra Finance Ltd), and then with Kotak Mahindra Finance Ltd, Kotak became the first non-banking finance company in India's corporate history to be converted into a bank. Over the years, Kotak Mahindra Group grew into several areas like stock broking and investment banking to car finance, life insurance and mutual funds. Among the many awards to Mr. Kotak's credit are the CNBC TV18 Innovator of the Year Award in 2006 and the Ernst & Young Entrepreneur of the Year Award in 2003. He was featured as one of the Global Leaders for Tomorrow at the World Economic Forum's annual meet at Davos in 1996. He was also featured among the Top Financial Leaders for the 21st Century by Euro money magazine. Most recently, he was named as CNBC TV18 India Business Leader of the Year 2008.

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Mr. C Jayaram Executive Director Mr. C. Jayaram, aged 53 years, is an Executive Director of the Bank and is currently in charge of the Wealth Management Business of the Kotak Group. An alumnus of IIM Kolkata, he has been with the Kotak Group since 1990 and came on the Kotak board in October 1999. He also oversees the international subsidiaries and the alternate asset management business of the group. He is the Director of the Financial Planning Standards Board, India. He varied experience of over 25 years in many areas of finance and business, has built numerous businesses for the Group and was CEO of Kotak Securities Ltd. An avid player and follower of tennis, he also has a keen interest in psychology.

Mr. Dipak Gupta Executive Director An electronics engineer and an alumnus of IIM Ahmedabad, Mr. Gupta has been with the Kotak Group since 1992 and joined the board in October 1999. Mr. Dipak Gupta, aged 48 years, is an Executive Director of Kotak Bank. He heads commercial banking, retail asset businesses and looks after group HR function. Early on, he headed the finance function and was instrumental in the joint venture between Kotak Mahindra and Ford Credit International. He was the first CEO of the resulting entity, Kotak Mahindra Primus Ltd.

[Source: - www.kotak.com/bank/aboutus]
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Think Investment. Think Kotak. (iii) Corporate identity

(iv) Business Kotak Mahindra Bank Ltd is a one stop shop for all banking needs. The bank offers personal finance solutions of every kind from savings accounts to credit cards, distribution of mutual funds to life insurance products. Kotak Mahindra Bank offers transaction banking, operates lending verticals, manages IPOs and provides working capital loans. Kotak has one of the largest and most respected Wealth Management teams in India, providing the widest range of solutions to high net worth individuals, entrepreneurs, and business.

[Source: - www.kotak.com/about us]


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1.3 Milestones of Kotak Mahindra group


Milestones that have shaped the Kotak Mahindra Group, since 1986 Since the inception of the erstwhile Kotak Mahindra Finance Limited in 1985, it has been a steady and confident journey leading to growth and success. The milestones of Kotak Mahindra's growth story are listed below by year. Year Milestone

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

1992 Enters the Funds Syndication sector 1995 Brokerage and Distribution businesses incorporated into a separate company - Securities. Investment Banking division incorporated into a separate company - Mahindra Capital Company

The Auto Finance Business is hived off into a separate company - Mahindra Prime Limited (formerly known as Mahindra Primus Limited). Mahindra takes a significant stake in Ford Credit 1996 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 Mahindra Asset Management Company. 2000 Mahindra ties up with Old Mutual plc. For the Life Insurance business. 2000 Securities launch its on-line broking site (now www.securities.com). Commencement of private equity activity through setting up of Mahindra Venture Capital Fund.

2001 Matrix sold to Friday Corporation 2001 Launches Insurance Services 2003 Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. 2004 Launches India Growth Fund, a private equity fund. 2005 Group realigns joint venture in Ford Credit; Buys Mahindra Prime (formerly known as Mahindra Primus Limited) and sells Ford credit Mahindra.

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Think Investment. Think Kotak. 2005 Launches a real estate fund 2006 Bought the 25% stake held by Goldman Sachs in Mahindra Capital Company and Securities

1.4 Awards
At Kotak Mahindra Group we take a client-centric view and constantly innovate to provide you with the best of services and infrastructure. We have regularly received accolades that stand testimony to our success in this Endeavour. Some of our recent achievements are:
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IDRBT Banking Technology Excellence Awards Best Bank Award in IT Framework and Governance Among Other Banks' - 2009 Banking Technology Award for IT Governance and Value Delivery, 2008 IR Global Rankings Best Corporate Governance Practices - Ranked among the top 5 companies in Asia Pacific, 2009 Finance Asia Best Private Bank in India, for Wealth Management business, 2009 Kotak Royal Signature Credit Card Was chosen "Product of the Year" in a survey conducted by Nielsen in 2009 IBA Banking Technology Awards Best Customer Relationship Achievement - Winner 2008 & 2009 Best overall winner, 2007 Best IT Team of the Year, 4 years in a row from 2006 to 2009 Best IT Security Policies & Practices, 2007 Euro money Best Private Banking Services (overall), 2009 [Source www.kotak.com/bank/aboutus/awards]
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Chapter 2 Marketing research 2.1 Theory of Marketing Research


Marketing research is the systematic and objective identification, collection analysis dissemination, and use of the information for the purpose of improving decision making related to identification and solution of problems and opportunity in the marketing. Marketing research is the function that links the consumer, customer and the public through the marketer through information. Marketing research specifies the information needed to address this issues, designs, the method for collecting information, manages and implements the data collection process, analyze the result and communicates the findings and their implications. Marketing research attempts to provide accurate information that reflects a true state of affairs. It is objective and should be conducted impartially. Although research is always influenced by researchers philosophy, it should be free from personal and political biases of researcher or management. Research that is motivated by personal or political gain involves a breach of professional standards. Such research is deliberately biased so as to result in predetermined findings. Each phase of the marketing research is important. We identify the marketing research problem or opportunity and then determine what information is needed to investigate it. After problem identification we try to find out the sources from where we can get relevant information and also develop alternative solutions. The marketing research can be classified into two parts. 1) Problem identification research 2) Problem solving research Organizations engage in marketing research for two reasons: (1) to identify and (2) solve marketing problems. This distinction serves as a basis for classifying marketing research into problem identification research and problem solving research. Problem identification research is undertaken to help identify problems which are, perhaps, not apparent on the surface and yet exist or are likely to company image, market characteristics, sales analysis, shortrange forecasting, long range forecasting, and business trends research. Research of this type provides information about the marketing environment and helps diagnose a problem. For example, the findings of problem solving research are used in making decisions which will solve specific marketing problems. The Stanford Research Institute, on the other hand, conducts an annual survey of consumers that is used to classify persons into homogeneous groups for segmentation purposes. The National Purchase Diary panel (NPD) maintains the largest diary panel in the United States.
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Think Investment. Think Kotak. Standardized services are research studies conducted for different client firms but in a standard way. For example, procedures for measuring advertising effectiveness have been standardized so that the results can be compared across studies and evaluative norms can be established. The Starch Readership Survey is the most widely used service for evaluating print advertisements; another well-known service is the Gallup and Robinson Magazine Impact Studies. These services are also sold on a syndicated basis.
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Customized services offer a wide variety of marketing research services customized to suit a client's specific needs. Each marketing research project is treated uniquely. Limited-service suppliers specialize in one or a few phases of the marketing research project. Services offered by such suppliers are classified as field services, coding and data entry, data analysis, analytical services, and branded products. Field services collect data through mail, personal, or telephone interviewing, and firms that specialize in interviewing are called field service organizations. These organizations may range from small proprietary organizations which operate locally to large multinational organizations with WATS line interviewing facilities. Some organizations maintain extensive interviewing facilities across the country for interviewing shoppers in malls. Coding and data entry services include editing completed questionnaires, developing a coding scheme, and transcribing the data on to diskettes or magnetic tapes for input into the computer. NRC Data Systems provides such services. Analytical services include designing and pretesting questionnaires, determining the best means of collecting data, designing sampling plans, and other aspects of the research design. Some complex marketing research projects require knowledge of sophisticated procedures, including specialized experimental designs, and analytical techniques such as conjoint analysis and multidimensional scaling. This kind of expertise can be obtained from firms and consultants specializing in analytical services. Data analysis services are offered by firms, also known as tab houses that specialize in computer analysis of quantitative data such as those obtained in large surveys. Initially most data analysis firms supplied only tabulations (frequency counts) and cross tabulations (frequency counts that describe two or more variables simultaneously). With the proliferation of software, many firms now have the capability to analyze their own data, but, data analysis firms are still in demand. Branded marketing research products and services are specialized data collection and analysis procedures developed to address specific types of marketing research problems. These procedures are patented, given brand names, and marketed like any other branded product.

[Source: - marketing research by Naresh Malhotra]


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2.2 Objectives of marketing research


1. Market Attractiveness Evaluation


Market sizing - estimating the size of a total market, how much is accessible by the business, and/or what market share ambitions would be realistic. Competitive presence and customer preference. Customer spending patterns, budget cycles, and intent. Channel trends, preferences, and allegiances.

  

2. Customer Insight: Specific customer needs, aspirations, buying behaviours, usage patterns, decision models, preferences, favourability, intentions, etc 3. Competitive Forces: Current and potential basis of competition in a market. 4. Communications Planning: What information sources do prospective customers pay attention to, how to reach them, opportunities / vehicles for influencing target customers and which are most effective. 5. Product Testing: Evaluation of product improvements, alternatives, packaging etc. 6. Concept Testing: Evaluation of potential products and solutions, clarification of needs, wants, and preferences. 7. Advert Testing: Evaluation of alternative brand promises, impact / cut through ability, persuasiveness, strength of call to action, out-take versus intent, etc. 8. Customer Satisfaction: Measurement of quality of customer experience, perceptions, reaction, loyalty, intent, etc. 9. Pricing: Testing of price / feature / quality / packaging / positioning combinations, price points, promotions, loyalty schemes, terms and conditions, etc. 10. List Building: Compilation of information about prospective customers for direct marketing purposes (NB may not be compatible with ethical guidelines followed by many market research practitioners). [Source: -www.marketingmindresearch.com]
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2.3 Marketing research process


Step 1: Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Step 2: Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic considerations. Step 3: Research Design Formulation A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps: 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative data (survey, observation, and experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis
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Think Investment. Think Kotak. Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with pre recruited households). Proper selection, training, supervision, and evaluation of the field force help minimize data-collection errors. Step 5: Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed simultaneously. Step 6: Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and present the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.

[Source: - Marketing research by Naresh Mlhotra/marketing research process]


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2.4 Objectives of our study


 To know the customer opinion about the services of Kotak Mahindra bank.  To know the satisfaction level of the customers of the bank.  To get the information about problems related to the services of the bank.  To know the complaints of the customers of the bank.  To know the grievance procedure of the Kotak Mahindra bank.  To know the behaviour of the staff and the manager towards the customers.  To know what changes the customers wants in the services.

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2.5 Scope of the study


People An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organisation wants to obtain a form of competitive advantage. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that customers are paying for. Many British organisations aim to apply for the Investors in People accreditation, which tells customers that staff is taken care of by the company and they are trained to certain standards. This will include following aspects.  The staff of Kotak Mahindra bank  The branch manager of the Kotak Mahindra bank  Customers of the Kotak Mahindra bank Process Refers to the systems used to assist the organisation in delivering the service. Imagine you walk into Burger King and you order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customers old one has expired again require an efficient process to identify expiry dates and renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company.  The process of opening an account.  The process of taking a loan.  The process of demand draft, demat account, statement,  The process of cash withdrawal, and cash deposit. Physical Evidence Where is the service being delivered? Physical Evidence is the element of the service mix which allows the consumer again to make judgments on the organisation. If you walk into a restaurant your expectations are of a clean, friendly environment. On an aircraft if you travel first class you expect enough room to be able to lie down! Physical evidence is an essential ingredient of the service mix; consumers will make perceptions based on their sight of the service provision which will have an impact on the organisations perceptual plan of the service.

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Think Investment. Think Kotak.  Receipt facility  Sitting facility  Broacher availability  Water facility  Parking facility  Air condition facility

 The scope of our study is three major Ps of the services marketing because we Kotak Mahindra bank is a service sector enterprise.  I want to analyze the services of the Kotak Mahindra bank by taking into consideration the three major Ps of service marketing i.e. people, process, and physical evidence.

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2.6 Research methodology


 Definition Research methodology simply means how we conduct the research. Research methodology is a framework or blueprint of conducting the marketing research project. Research methodology includes the methods of collecting the data, sources of the data, techniques of collecting the data, measurement and scaling techniques, questionnaire design, sampling process and sampling size, and plan of the data analysis.  Topic The summer internship training and the project is the practical exposure of your interested field so I have decided to prepare the project report on any of the financial institute. As the result of that I have got the permission for summer training at the Kotak Mahindra bank. As the banking is the major sector of the services industry I have decided to analyse the services provided by the Kotak Mahindra bank. The services are based on the three major Ps people, process, and the physical evidence. After a long discussion between me and my colleague I have decided to prepare a project report on the topic of Customer Opinion About the services provided by Kotak Mahindra Bank in context of three Major Ps of the service marketing  Information needed As my topic is based upon the customer opinion, I would require the information about what the customers of Kotak bank are really thinking about the services provided by the Kotak Mahindra bank. I have to collect all the information regarding the services provided by Kotak Mahindra bank in context of people, process, and physical evidence.  Data sources Mainly there are two types of the data sources. 1. Primary data 2. Secondary data I have used both the data sources for collecting the relevant information. As it is a research project I have gathered the information related to the customer opinion by preparing the questionnaire. For secondary data i have used many sources like the websites and the reference books. I have also collected some of the information from the secondary data sources of the Kotak Mahindra bank.

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Think Investment. Think Kotak.  Qualitative research Qualitative research is an unstructured, exploratory research methodology based on the small samples that provides insights and understanding of the problem setting. In qualitative research we problem solving technique and we have taken small size sampling research. It will be helpful to me in identifying the satisfaction of the customers in context of the attitude of the staff.  Method of collecting the quantitative data For collecting the quantitative data I have used the study and observation method. We have also conducted a survey.  Measurement and scaling techniques Measurement is the assignment of the numbers or other symbols to characteristics of the objects according to certain pre-specified rules. Scaling is the generation of a continuum upon which measured objects are located. There are mainly two types of the scaling techniques. 1. Comparative 2. Non comparative I have used both the scaling techniques. From the comparative I have taken the rank order and from the non comparative I have taken the likert scale, staple scale, and the semantic scale. For measuring the satisfaction level I have used the satisfaction parameters. Other measures are like excellent, good, poor, best etc.  Questionnaire design Questionnaire is a structured technique for data collection that consists of a series of questions, written or verbal, that respondent answers. I have included dichotomous questions, options, rating to the different options. Mainly structured and close ended questions are framed so it would not create any confusion in the minds of the respondents. No sensitive and personal information based questions are being included in the questionnaire except one or two. I have also gone though the pilot survey before the real survey.  Sampling process and the sample size Sampling process includes the following aspects. 1. Sample unit: - customers of the Kotak Mahindra bank 2. Sample size: - 150 3. Sampling method: - sampling without replacement and the non probability sampling method
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Think Investment. Think Kotak. 4. Target population: - customers of Changodar branch and the salary account holders  Field work and data collection We have collected the data by doing the field work at the Changodar branch of the Kotak Mahindra bank by personally interviewing the customers. We have also done the telephone survey.  Data preparation and analysis Data preparation includes editing, coding, transcription and verification of the data. Each questionnaire is inspected by us. Data is being analysed by us for getting proper findings. We have also some the tests like Z test, Chi-square test, ANOVAs, hyper geometric test and the hypothesis by comparing different aspects.  Report preparation and presentation After converting the raw data into the information we have finally prepared the project report and the presentation. On the based on the survey we also have given some recommendations and conclusion.

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Swami Vivekanand MBA College

Think Investment. Think Kotak.

2.7 Limitations of the study


The study could not be made that comprehensive due to time constraints. Some customers feel uncomfortable to reveal some information relating the services they use. It might have happened that some more essential information could have been collected. 1) Time constraint 2) People are not interested in giving personal opinion. 3) I have prepared and absolute survey report on Kotak mahindra bank so I have compared the services of Kotak Mahindra bank with other banks.

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Swami Vivekanand MBA College

Think Investment. Think Kotak.

Chapter 3 Service marketing mix


A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A service tends to be an experience that is consumed at the point where it is purchased, and cannot be owned since is quickly perishes. A person could go to a caf one day and have excellent service, and then return the next day and have a poor experience. 1) People 2) Process 3) Physical evidence 4) Product 5) Price 6) Place 7) Promotion

3.1 People
People are the most important element of any service or experience. Services tend to be produced and consumed at the same moment, and aspects of the customer experience are altered to meet the 'individual needs' of the person consuming it. Most of us can think of a situation where the personal service offered by individuals has made or tainted a tour, vacation or restaurant meal. Remember, people buy from people that they like, so the attitude, skills and appearance of all staff need to be first class. Here are some ways in which people add value to an experience, as part of the marketing mix - training, personal selling and customer service. The people will include the following aspects. Employees of the service firm constitute the major competency in understanding business operations. Every employee of the service organization is the marketing person who undertakes either full time or part time marketing activity whether an employee is involved in direct contact with the customer or not. Employees are to be trained and motivated for the batter performance in the marketing activities. If we talk about the people of the Kotak Mahindra bank, than we can include employees and the branch manager. Employees of the Kotak Mahindra bank are very enthusiastic to their work and they are always ready to help the customers. They are highly qualified and versatile in their job. All the employees are having the skills of operating each and every department of the bank. Because of this customer can go for any of the employee of the bank for their problem
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Swami Vivekanand MBA College

Think Investment. Think Kotak.

3.2 Process Process is an element of the extended marketing mix, or 7P's.There are number of perceptions of the concept of process within the business and marketing literature. Some see processes as a means to achieve an outcome, for example - to achieve a 30% market share a company implements a marketing planning process. In the process related to the Kotak Mahindra bank I have included the processes of opening an account, taking a loan, demand draft and cash withdrawal and deposit. In the service marketing there are three types of processes i.e. line operation, job shop operation, intermittent operation. Process is the activity that assures service availability and quality. In simple terms the management of the process is to manage service encounters. (Interaction between service employees and customer and customer and service organization.) If we talk about the process of the Kotak Mahindra bank, than we can include following points. 1. 2. 3. Transaction system Process of opening an account Process of taking a loan

Lets see how the different processes of the Kotak Mahindra bank are going on. 1. Transaction system: Transaction system includes the activities of cash deposit, cash withdrawal, demand draft etc. These transactions are very important for any bank. Customer wants these transactions to be very quick. In Kotak Mahindra bank there are only three counters i.e. cashier, representative officer (R.O.), and operation manager. For any transaction of cash withdrawal and cash deposit customers just have to take receipt and give it to the cashier after filling it. Transaction system of the Kotak Mahindra bank is so fast that almost all the customers of the Kotak Mahindra bank have appreciated the service. 2. Process of opening an account : Kotak Mahindra bank offers different types of accounts as per the requirement of the customers but the process of opening all the accounts is almost the same. Following are the steps of opening an account.  First of customer have to take the form of the account which he wants to open.  After that he has to give the necessary documents and required signatures in the account form and in the dual signature form. The form will be filled by the employee of the Kotak Mahindra bank itself. Customers have to give the cheque of required amount.
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Swami Vivekanand MBA College

Think Investment. Think Kotak.  The account will be opened in one or two days after verification of documents and the account opening kit will be delivered at home through courier. 3. Process of taking a loan: The requirement of documents is different according to the loan but the process of taking loan is almost the same. The process of taking loan is as under. Submit all the required documents to the branch manager of the bank. Keep one copy of all the documents before submitting. All originals are bought for verification. All documents should be self attested. After submitting, the documents will be transferred to the main office and they will decide provide

    

the loan or not and if yes than how much. This was all about the process of the Kotak Mahindra bank. I have observed that the process of the Kotak Mahindra bank is much faster in comparison to all other bank and it is too much easier also.

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Swami Vivekanand MBA College

Think Investment. Think Kotak. 3.3 Physical evidence Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. Physical evidence is the element of the service mix on the basis of which customers built his judgement about the organisation. When the customer enters into the bank his expectations are of clean and good environment. Physical evidence is the material part of the service. Physical evidence is a term used to describe the image of the organization. When the customer do not have anything that they can touch, see or try before they buy they tend to judge by the image of the organization. Physical evidence refers to the tangible expression of the product and how it is purchased and used. If we talk about the Kotak Mahindra bank, than we can take following things as the physical evidence.  Air condition facility  Water facility  Waiting seats  Environment of the bank  Receipt availability  Drop box facility  ATM machine facility  Notice board  Security guard  Parking facility  Instructor Kotak Mahindra is recently providing all the above mentioned facilities and trying to develop more and more facilities for the convenience of the customers. Kotak Mahindra bank also provides the big hoardings of its new and promotional schemes inside and outside the bank so that customer becomes aware about that. These hoardings are being changed every month.

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Swami Vivekanand MBA College

Think Investment. Think Kotak. 3.4 Product In the service sector product is intangible. It consists of bundle of features and benefits that have relevance to a specific target market. A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. (i) Deposit 1) Savings Account It's a new Savings Account for a new age, because we all know that times have changed. In today's world, you can't get by with a typical Savings Account because a typical Savings Account doesn't do much more than provide you with a safe place to put aside your money. But that is not good enough! Kotak Savings Account allows you to put aside a lot more than just your money. Ace savings a/c ( AQB- 50,000)

 Free Access to all Domestic and International VISA ATMs  Free Gold Debit Card  Free Add-on and Supplementary Gold Debit Card  Three NMC Waived Edge Savings Accounts for family members*  Free Demand Drafts (Unlimited at Kotak locations)  Free RTGS  Extended Debit Card withdrawal limit of Rs. 1.75 lac per day through ATM / POS  15% Discount on Locker Rent * 2% Discount on Gold Eternity Coins & Bars*  Waiver on first year Demat Annual maintenance charge  Free outstation cheque collection Pro savings a/c ( AQB-20,000)

 Free Access to all Domestic VISA ATMs  Free Gold Debit Card for 1st Year  Free Classic Debit Card  One NMC Waived Edge Savings Account for your family member*  Free cash pick-up / delivery (One Call per day)
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Swami Vivekanand MBA College

Think Investment. Think Kotak.  Free instrument pick-up / delivery (One Call per day)  Free NEFT  Free Cash withdrawal from any Kotak Branch across India.  50 % Discount on first year Demat AMC Edge savings a/c ( AQB-10,000)

 Free Access to all Domestic VISA ATMs  Free Classic Debit Card for 1st Year  Free At-par Cheque (upto 25 leaves per qtr.)  Free Phone Banking, Net Banking, Mobile Banking and SMS Banking  Free NEFT Nova savings a/c ( AQB-5,000)

 Unlimited Access  Financial payments facilitated through the savings account  Quick and easy funds transfer Classic savings a/c

 Unlimited Access  Free investment account  Quick and easy funds transfer  Active Money  Dedicated relationship manager Easy savings a/c

 Unlimited Access  Phone Banking  Net Banking  Mobile Banking & Alerts
.

Corporate salary a/c

 Zero Balance account  Personalized At Par Cheque book  Reimbursement Account  Investment Account
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Swami Vivekanand MBA College

Think Investment. Think Kotak.  Office Banking  Free Demand Drafts 2) Current Account Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings. Whether you have a small/ mid size business or you are an enterprise spread across multiple locations in the country, you would find a Current Account that's just designed for you. With features ranging from Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free Demat Account, and more! Neo Current Account

 Charges reversal offer upto 1000 rupees p.a.!  Unsecured overdraft facility upto Rs. 10 lakhs!  Free Cash Deposit at Home Branch!  Debit Card with Free Access at all Domestic VISA and Cash net ATMs!  SMS Requests and Alerts Service! Edge Current Account

 Kotak Active Money  Free DD/BC, NEFT & RTGS  Free payable at - par cheque book  Free cash deposit at home branch  Home Banking service  Unsecured overdraft facility upto Rs.10 lakhs Pro Current Account

 Free DDs, NEFT, RTGS & at - par cheque book  Free cheque collection  Free cash deposit at home branch  Free Home Banking service  Kotak Active Money  Unsecured overdraft facility upto Rs.10 lakhs 
y

Elite Current Account

 Free DDs, NEFT, RTGS & at - par cheque book


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Swami Vivekanand MBA College

Think Investment. Think Kotak.  Free cheque collection  Free cash deposit at home branch  Free Home Banking service  Kotak Active Money  Unsecured overdraft facility upto Rs.10 lakhs Ace Current Account

 Free DDs, NEFT, RTGS & at - par cheque book  Free cheque collection & free cheque returns  Free cash deposit at home branch  Free Home Banking service  Kotak Active Money  Unsecured overdraft facility upto Rs.10 lakhs 3) Term Deposit Kotak Mahindra Bank brings Term Deposit at highly attractive interest rates coupled with special facilities Like Overdraft and Re-investment option.
y y y y y

Term Deposits Regular Term Deposits Senior Citizen Deposits Ace Deposits Tax Saving Deposits

4) Safe Deposit Locker Kotak Mahindra Bank offers Safe Deposit Locker facilities which can be utilized to safe keep your important documents, jewelry and other valuables. (ii) Cards 1) Credit card 2) Debit card
y y y y

Gold Debit Card Platinum Debit Card Privy League Platinum Debit Card Access India Debit Card (NRO)
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Swami Vivekanand MBA College

Think Investment. Think Kotak. 3) Best compliment card 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! 4) Kotak gold netcard Kotak Gold netc@rd is a single use limited validity online card created by you, from your bank account, at the time of online shopping and cannot be used after your first payment. It combines the benefit of using your bank account and the universal acceptance of a VISA Card in a highly secure environment.

(iii)

Investment

Kotak Mahindra Bank recognizes that financial needs vary, not just amongst individuals, but across the different stages of your life. We have years of experience in helping people put together an investment portfolio that works best for them. 1) Mutual fund
y y y

Assistance at every step of the investment process. An experienced research team to analyze and research the Mutual Funds available in the market. Convenience - A consolidated investment account to give you a snapshot of your entire mutual fund investments made through us and a lot more!

Experienced research team analysis and researches the Mutual Funds available in the market, helping you make more informed decisions. Our 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 that we offer range from Debt to Equity and are drawn from renowned Asset Management Companies with a strong track record. The recommended list of Mutual Funds is released on a half yearly basis. The selection criteria are based on a unique "Three Tier process" where factors like the consistency, alpha generation, risk management and Fund Manager Skills are considered. The last 24 month performance of the funds is taken and various statistical tools are applied to arrive at the final set of recommended funds across various categories. Your Relationship Manager will recommend the funds that suit your investment objectives.

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Swami Vivekanand MBA College

Think Investment. Think Kotak. 2) Demat Mahindra Bank offer streamlined, efficient depository services that allows you to hold your shares in convenient, "demat" formats and leverage opportunities in the stock-market when you spot them.
y y

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

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Swami Vivekanand MBA College

Think Investment. Think Kotak. 3) Kotak Gold eternity Kotak Mahindra Bank brings you Gold Eternity, 24 Carat pure gold coins and bars, carrying a 99.99% Assay Certification, signifying the highest level of purity as per international standards.
y

Manufactured in Switzerland by PAMP, one of the world's premier gold refiners and a brand recognized worldwide as a guarantee of excellence and quality. Certified by one of the top assayers in the world. Tamper proof packaging to ensure the purity of the gold bar. Unique number on every certificated, with records maintained in Switzerland. Competitive pricing based on daily pricing in the international bullion market. bars in 5gm, 8gm, 20gm, 50 gm and 100 gm.

y y y y

Kotak Gold Eternity comes to you in varied denominations. You can choose from a range of coins an d 24 carat pure gold coins and bars carrying a 99.99% Assay Certification. Unique Number On Every Certificated With Records Maintained In Switzerland.

y y

4) New Pension scheme Kotak Mahindra bank offers the best pension scheme especially for the persons who are planning for the future. This pension plan includes the bundle of benefits and some key features which will secure the future of the investor. In this pension plan the investor have to invest some small amount each year for the decided period of time. The time will be as per the convenience of the investor. But the investor must have to invest for a lock in time which is of 3 years but now it is increased by the government and it is now 5 years. After lock in period if the investor wants to continue to invest that it is possible and if he want to stop investing than he has to give one application of premium holiday. His money will be invested in three parts. One part will be invested in the debt market, second part will be invested in the government bonds and the third part will be invested in the equity. One part is being invested in the equity for gaining high returns. The equity part will be very less. Other two parts are invested in the government securities where the risk is very low and the return is also very less. The customer will be charged 3% of fees each year which very less in comparison of the other private companies and this charge will deducted on monthly basis so more money can be invested. Government of India has introduced New Pension System (NPS) for all citizens of India including workers of the unorganized sector. NPS, Regulated by PFRDA, is an important milestone in the development of sustainable and efficient voluntary defined contribution pension system in India. The New Pension System (NPS) is based on a unique individual Permanent Retirement Account Number (PRAN) created for individual subscribers between 18 - 60 years of age. In this system, a subscriber shall
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Swami Vivekanand MBA College

Think Investment. Think Kotak. periodically contribute savings into his / her Permanent Retirement Account (PRA) while he / she are working. The amount will get invested through PFRDA appointed Pension Fund Managers (PFMs). The accumulated amount will be reflected in employee's PRA while employee is working and shall use the accumulations at retirement to procure a pension for the rest of the life. Subscribers in this system shall enjoy a variety of important facilities and rights including portability across jobs and locations, rights and choices regarding selection of Pension Fund(s) and schemes, freedom to switch between Pension Funds and service providers.

5) Insurance We offer a range of carefully selected insurance policies across the entire spectrum of life insurance products. Our relationship managers will analyze your insurance needs and develop the solution that works best for you.
y y

Carefully selected insurance policies to suit your needs. Experts to help you analyze your insurance needs and develop [the solution that works best for you.

 Kotak Smart Advantage Plan Every step in your life brings with it new learning. You are determined to make the best of it, so that you can look forward to a great future. How you shape your tomorrow depends greatly on how you build on your today. Kotak Life Insurance introduces Kotak Smart Advantage, a great combination of investment with insurance, to put your savings to work today. It is a market linked plan with 100% premium allocations helping you accumulate wealth systematically, over the long-term. This plan offers the following key benefits:
y y y y y y

Guaranteed returns of up to 275% of your first year premium at maturity. Assured bonus additions at regular intervals during the policy term to enhance your fund value. 100%* allocation of your premiums from second year onwards to maximize your earnings potential. A unique fund offering you the maximum opportunity for growth. Option to maximize protection for your loved ones. Applicable for premium sizes of Rs.36, 000 and above annually from second year onwards.

 Kotak Eternal Life Plans Kotak Eternal Life Plans are participating whole life plans that provide enhanced protection till the golden age of 99. The plans provide for a high cover at lower premiums, cash lump sum benefits at desired stage and a way to care for your spouse in the second innings of life. With guaranteed protection for life, opportunity to create wealth, and comprehensive cover options, these plans provide you with a perfect
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Swami Vivekanand MBA College

Think Investment. Think Kotak. financial solution to suit your needs.  Kotak Head start Child Plans Every child is different. Each has their own set of dreams and aspirations. As a parent you would like to provide your child with all the building blocks that could develop his or her potential to the fullest. This could mean extra coaching or tuition for talented children, special training or equipment for natural athletes or professional training for born singers. Head start Child Plans - a specially tailored, cost-effective plan, aims to give your children the financial means to pursue his or her dreams and live them. The plan offers the following advantages.
y

Choice of 2 plan variants

1. Future Protect 2. Assure Wealth


y y y y y

Maximizes wealth while providing protection Joint life option Save for 2 children with one plan Additional bonus units Flexible Withdrawal

 Kotak Safe Investment Plan II Kotak Safe Investment Plan II is a unit linked plan that combines the benefits of insurance and capital market returns into one. This plan from the stable of Kotak Life Insurance is a true reflection of the company s essence: innovation that will benefit the investor. What makes investing in Kotak Safe Investment Plan II truly unique is that you enjoy a Guaranteed Maturity Value, with varying degrees of equity exposure depending on your risk appetite. So, if the market value of your units is higher, you reap the benefits with the peace of mind that whilst in a bear market your investment is under-pinned by the Guaranteed Maturity Value. And there s more, the returns are totally tax-free.  Kotak Flexi Plan There may be times when you wish there was an answer to your financial worries. A solution that allows you to take control of your investments. A way to provide for your family s future goals and expenses, and to protect your family from the harsh uncertainties of life; be it death, disability or illness. Here is Kotak Flexi Plan which is designed to do just this. It comes to you with the option of investing in six professionally managed funds, allowing you to allocate your investment in a combination of one or more
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Swami Vivekanand MBA College

Think Investment. Think Kotak. funds, switch between them and take charge of your investments. The plan aims to earn efficient returns over the long term and helps you plan for your financial goals, with the comfort of a Guaranteed Maturity Value. More importantly, it ensures that your loved ones are protected, if any unfortunate events were to take place...a plan that gives you complete control.  Kotak Easy Growth Plan Kotak Easy Growth Plans are single premium; market linked insurance plans that keep pace with your ever growing success. It not only helps you save for the future but also lets you reap rich benefits from the investments of your choice. The undisputed advantage of these plans is its simplicity. This simplicity stems from our clear understanding of what would appeal to a customer who is looking for a hassle free investment option.  Kotak Capital Multiplier Plan The Kotak Capital Multiplier Plan is a participating plan that is built in such a way that it allows your money to multiply, and gives you the flexibility of using this money the way you need it, in regular withdrawals. This is an endowment plan, which is very flexible, and has a lot of other in-built benefits.  Kotak Term Plan Kotak Term Plan is a pure risk product that aims to cover your life at a nominal cost. You may want to take this plan to cover your outstanding debts like a mortgage, a home loan etc. Since this is a pure risk cover product, there are no maturity benefits payables on survival. This is a non-participating plan.  Kotak Preferred Term Plan The Kotak Preferred Term Plan is designed to provide you with reduced premium rates for a sum assured of Rs.10 lakhs and above. Only Males over the age of 18 years, who do not use tobacco in any form. And females over the age of 18 years are eligible for this plan.  Kotak Child Advantage Plan The Kotak Child Advantage Plan is an investment plan designed to meet your child s future financial needs. It s a plan that gives your child the "azaadi" to realize his dreams. The plan is a participating plan with a 15-day free look period.  Kotak Retirement Income Plan The Kotak Retirement Income Plan is a savings plan designed to meet your post-retirement needs. It is a plan that gives you "Jeene ki azaadi". It gives you the choice to remain independent even after retirement.
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Swami Vivekanand MBA College

Think Investment. Think Kotak. The Kotak Retirement Income Plan is a participating plan. The plan comes in two forms: 1. With Cover 2. Without Cover  Kotak Retirement Income Plan (Unit Linked) How well you save and invest today will make all the difference tomorrow between having to work and choosing to work. There is no better time than the present to plan for what should be the best years of life - your retirement. By the time you retire, costs of living would have increased substantially making even the most basic commodities like milk and vegetables costlier by probably five times. Medical costs would have doubled or more. An ideal retirement solution is the one that gives you complete flexibility and peace of mind, not only while you save for your retirement but also after you retire. To help you plan towards the golden years of your life, we present to you the Kotak Retirement Plan (Unit Linked).An investment plan designed to secure your future; it assures that even though you have stopped working, your income does not. It is offered to you in three versions - Regular Premium, With Cover and Without Cover, in addition to a Single Premium version. The regular premium options come with the Kotak "Seal of Guarantee"@. These plans have been designed to ensure that your money earns you handsome returns, safe from the vagaries of the capital market, so that you can retire comfortably and securely. Please note that in these plans, the investment risk in the investment portfolio is to be borne by the policyholder. However, Kotak Life Insurance offers you a Basic Sum Assured/ Guaranteed Maturity Value on the Regular Premium versions of this plan to safeguard against the downside risk of falling markets.  Kotak Endowment Plan Kotak Endowment Plan is a protection plan that covers your life and at the same time ensures that your money does not lie idle. It invests a portion of your premium in financial instruments and ensures a considerable growth in savings. This is a participating plan (with profits).  Kotak Money Back Plan The Kotak Money Back Plan not only covers your life, it also assures you a certain percent of the sum assured as cash payment at regular intervals of every 5 years. It is a savings plan with the added advantage of life cover and regular cash inflow. This plan is ideal for planning special moments like a wedding, your child s education or purchase of an asset etc. This is a participating plan (with profits).

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Swami Vivekanand MBA College

Think Investment. Think Kotak.  Kotak Premium Return Plan This plan is a sure and secure insurance option without the hassles or worries of a conventional insurance plan. With minimal paperwork and procedures, you get the dual benefit of a risk cover and savings. At the end of the term, a minimum of the premiums paid by you will be returned depending on the option you choose. In other words, this is a term plan that makes financial sense by offering maturity benefits as well.

(iv)Loans Kotak Mahindra Bank presents Personal Finance - the single expert source for all your financial needs. Unexpected expenses, education, wedding in the family, home improvement or that long awaited vacation. 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 its all you need to make your business dreams come true.  Avail loans from Rs.50,000-50 lakhs  Quick Approval & hassle-free processing  Minimal paperwork  Flexible repayment options  Repay with easy EMIs  Convenience of service at your doorstep
y

Home Loans

 High Eligibility for Businessmen  Doorstep Service  Attractive Interest Rates  Simplified Documentation  Quicker Turnaround time Personal Loans

 Avail loans from Rs.50,000-50 lakhs*  Quick Approval & hassle-free processing  Minimal paperwork  Flexible repayment options  Repay with easy EMIs  Convenience of service at your doorstep
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Swami Vivekanand MBA College

Think Investment. Think Kotak.


y

Loan against property

 High loan eligibility for businessmen  Loans amounts ranging from Rs.10 lakhs - Rs.3 Crore!  Loans against residential as well as commercial properties Home Improvement Loans

 Improve your home  Build up its equity  Attractive interest rates  Free personal accident cover with every loan Home Loan Balance Transfer

 Transfer your loan to a lower interest rate  Free personal accident cover with every loan  Simple documentation and speedy processing (v) Convenience banking In today's day and age time is money. You work hard and have a busy schedule. Doing your banking should be easy and convenient and not add to your worries. We at Kotak Mahindra Bank realize this and have specially tailored a wide range of value added products and services to make your money work for you. These, coupled with the highest standard of customer care will make your life simpler and easier. Net Banking View details across Accounts, Term Deposits, and Demat Accounts - 24x7
y

Kotak Payment Gateway Instant, convenient and secure way of shopping and making payments online.

Mobile Banking Experience online banking - without a pc or internet connection.

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Swami Vivekanand MBA College

Think Investment. Think Kotak.


y

SMS Banking

Carry your bank on your phone!


y

Alerts Get Alerts on your mobile or by email for events that you would like to keep track of. Phone Banking Our 24 hr customer service center is at your service!

ATM Network

[Source: - www.kotak.com/bank/products ]
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Swami Vivekanand MBA College

Think Investment. Think Kotak. 3.5 Price The price is the amount a customer pays for the product. Pricing decision is a one of the critical decisions of the service mix because it alone decides the revenue of the firm. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. In relation to Kotak Mahindra bank we can include interest rates of differe schemes, nt customers return rates. (i) General Schedule of Features and Charges for Current Accounts For Retail Current Accounts (w.e.f. 1st Jan 2010) Product Level Free Limits & Charges (in Rs.) Neo## 10,000 * Edge 25,000 Free 25 DD/ BC p.m.; thereafter Std Chrgs * Pro 50,000 Free 50 DD/ BC p.m.; thereafter Std Chrgs * Elite 100,000 Free 100 DD/ BC p.m.; thereafter Std Chrgs Free upto 10L p.m.; thereafter Std Chrgs Free Ace 250,000 Free Unlimite d Free upto 30L p.m.; thereafte r Std Chrgs Free

Particulars Product Name

Standard Charges (in Rs.)

Average Quarterly Balance (AQB) in Rs. Remittances/Payments Payable at 1/1000 Demand Branch (Min 40 Draft/ Locations Max Banker's Cheque 5000) Payable at Nonbranch Locations RTGS Through Branch Through Net Banking Through Branch Through Net Banking 2/1000 (Min 40 Max 5000) 1 - 5 L: 25/ txn; > 5 L: 50/ txn

15/ txn

Free

Free Upto 1L: 5/ txn; > 1L: 25/ txn *

Free Free

Free Free

Free Free

Free Free

NEFT**

Free

Free

Free

Free

Free

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Swami Vivekanand MBA College

Fund Transfer Branch & Net Banking Cheque Book Default Cheque Book is Payable At-par Only Receipts/ Collections Local Clearing Cheque Drawn at Out-station Kotak Cheque Branch Locations Drawn at Kotak Non branch Locations RTGS NEFT Fund Transfer Home Banking On Call Requests Inward Inward Inward

Nil 2/Leaf

Free 1st Chq Book (25 leaves) Free; then Std Chrgs Free *

Free 1 Chq Book (50 leaves) Free p.m.; then Std Chrgs Free

Free Free

Think Investment. Think Kotak. Free Free Free Free

Nil <10K: 50/Chq; 10K - 1L: 100/Chq; >1L: 150/Chq <10K: 50/Chq; 10K - 1L: 100/Chq; >1L: 150/Chq Nil Nil Nil

Free

Free Free

Free Free

<10K: Free 50/Chq; 10K - 1L: 25/Chq; >1L: Free <10K: 50/Chq; 10K - 1L: 25/Chq; >1L: Free Free Free Free * <10K: 50/Chq; 10K - 1L: 25/Chq; >1L: Free Free Free Free 6 Requests Free p.m. (Max 1/Day); thereafter Std Chrgs Registratio n Fee 250 p.a. 10 Requests Free p.m. (Max 1/Day) thereafter Std Chrgs Free$$ Monthly Free

<10K: 50/Chq; 10K - 1L: 25/Chq; >1L: Free Free Free Free Free 1/Day, thereafter Std Chrgs Free 1/Day, thereafter Std Chrgs

Free Free Free *

<10K: 50/Chq; 10K 1L: 25/Chq; >1L: Free Free Free Free Free 1/Day, thereafte r Std Chrgs Free 1/Day, thereafte r Std Chrgs

Cheque 40/ Pick-up or Request DD Delivery Cash < 2L: Pick-up or 200/Requ Delivery est; 2 5L: 300/ Request

Cheque 500 p.m. Pick-up Cash Deposit & Withdrawal Cash Deposits At Home 2.5/1000 Branch Beat Service

Free Monthly Free

Free Monthly Free


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Monthly Monthly Free Free

Swami Vivekanand MBA College

Location @

Limit:Free upto 2L per month.; thereaft er Std Chrgs

At Non home Branch Location

4.5/1000 Min 50 per txn

Cash Withdrawal

From Home Branch Location From Non - home Branch Location

Nil

Std Chrgs (Max 1L/Day without any approva l) Free

Limit:Free upto 5 times of prev month's avg credit balance or 3L whicheve r is higher per month ; thereafter Std Chrgs Std Chrgs (Max 1L/Day without any approval) Free

Think Investment. Think Kotak. Limit:Limit:Limit:Free upto Free upto Free 5 times of 5 times upto 5 prev of prev times of month's month's prev avg credit avg credit month's balance or balance avg 5L or 10L credit whichever whicheve balance is higher r is per per month; higher month; thereafter per thereafte Std Chrgs month ; r Std thereafter Chrgs Std Chrgs Std Chrgs Std Chrgs Std (Max (No Chrgs 1L/Day Approval (No without required Approva any for any l approval) amount) required for any amount) Free Free Free

2/1000 Min 50 per txn

Std Chrgs (Max 3L/Day without any approva l) Free Free Free 5 Free Txns p.m. thereaft er std chrgs. *

Std Chrgs (Max 3L/Day without any approval)

Std Chrgs (Max 3L/Day without any approval)

Std Chrgs (No Approval required for any amount)

Std Chrgs (No Approva l required for any amount) Free Free Free Free

Automated Teller Machine (ATM) Balance Nil Kotak Enquiry Cash Nil Withdraw al Nil Other Bank's Balance VISA ATMs - Enquiry Domestic Cash 18.13 per Withdraw txn al

Free Free Free 5 Free Txns p.m. thereafter std chrgs. *

Free Free Free Free

Free Free Free Free

Other Bank's VISA ATMs -

Balance Enquiry

15 per txn

Free
46

Swami Vivekanand MBA College

International ATM Txns Declined Debit Card Primary Card

Cash Withdraw al Insufficie nt Funds Issuance Fee Annual Fee

110 per txn 25 per txn 100 250 p.a.

* * Free *

* * Free *

* * Free

Think Investment. Think Kotak. * Free * Free Free for 1st Year thereafter Std Chrgs * * * Free Free for 1st Year thereafte r Std Chrgs * Free for 1st Year thereafte r Std Chrgs * Free for 1st Year thereafte r Std Chrgs * Free * * *

Free for 1st Year thereafter Std Chrgs * *

Supplementar y Card

Issuance Fee Annual Fee

250 250 p.a.

* *

* *

Add-on Card

Issuance Fee Annual Fee

250 250 p.a.

* *

* *

* *

* *

Card Replacement

Lost Card Damaged Card

200 Nil USD 5 USD 35 25 per txn

* Free * * *

* Free * * *

* Free * * *

* Free * * *

VISA Global Assist Lost Card VISA Global Assist Insufficie POS Txns nt Funds Declined Other Charges Account Related NMC AQB Non maintenance Account Closure Charges

750 per quarter <30 Days: Nil; 31 181 Days: 750; >181 Days: Nil *

900 per quarter <30 Days: Nil; 31 181 Days: 900; >181 Days: Nil *

1500 per quarter <30 Days: Nil; 31 181 Days: 1500; >181 Days: Nil

3000 per quarter <30 Days: Nil; 31 181 Days: 3000; >181 Days: Nil 3 Free

5000 per quarter <30 Days: Nil; 31 181 Days: 5000; >181 Days: Nil 3 Free
47

Cheque Returns Cheques Local

100 per

50 per

Swami Vivekanand MBA College

Deposited & Returned (Outward) Outstation

Cheque

Financial Cheques Reasons Issued & Returned Technical (Inward) Reasons SMS Alerts & Updates Large 50 per Alerts Debit/Cre Quarter dit Daily 25 per Updates Balance Quarter Weekly 25 per Balance Quarter Phone Banking IVR Nil Phone Assisted Banking Agent 25 per Assisted Call Charges Common for All Products Account Statements Physical/ Nil Monthly Email Physical 300 per Weekly Quarter By Email Nil Daily By Email Nil Only At <90 Days: Ad- hoc Branch/ 100 Statements Phone Request 91-365 Banking Days: 200 >365 Days: 1000 On Net 50 Banking/ ATM On Nil (by Mobile email Banking only) Standing Instruction 50 Set-up

100 per Cheque + Core Bank Chrgs 300 per Cheque Nil

* Free * * Free Free Free

* Free * * Free Free Free

Think Investment. Think Kotak. Cheque p.m.; p.m.; thereafter thereafte 50 per r 50 per Cheque Cheque 50 per 50 per 50 per Cheque + Cheque + Cheque Core Bank Core + Core Chrgs Bank Bank Chrgs Chrgs * * * Free * * Free Free Free Free Free Free Free Free Free Free Free Free Free Free Free

Free * Free Free * * * * Free

Free * Free Free * * * * Free

Free * Free Free * * * * Free

Free * Free Free * * * * Free

Free * Free Free * * * * Free

*
48

Swami Vivekanand MBA College

Nil Free Execution 25 * Amendment 25 * Failure Statement/ Certificate / Report Issuance Other 100 * Balance than 31st Statement March Duplicate 100 * Interest Only Statement Duplicate 200 * TDS Only Certificate Confidential 500 * Report Paid Cheque Nil Free Report Signature 100 * Verification 300 * Photo Attestation 10,000 * Solvency Certificate 500 * Credit Confirmation Foreign Currency Payments & Collections 500 + * DD Issuance FCY Conversio n Chrgs 500 + * DD FCY Cancellation Conversio n Chrgs 500 * DD Revalidation Core 250 + * TT Transfer Bank FCY Chrgs Conversio Borne by n Chrg Beneficiar y Core 1000 + * Bank FCY Chrgs Not Conversio Borne by n Chrg Beneficiar y 500 * Cheque Collection 1000 * Cheque Deposited and Returned

Free * * * * * * Free * * * * *

Free * * * * * * Free * * * * *

Think Investment. Think Kotak. Free Free * * * * * * * * Free * * * * * * * * * Free * * * * *

* *

* *

* *

* *

* *

* *

* *

* *

49

Swami Vivekanand MBA College

Financial Cheque Reasons Issued and Returned Technical Cheque Reasons Issued and Returned Miscellaneous Charges ATM/ PIN Regeneration Phone/ Net Banking (only if sent through courier) DD/BC Cancellation / Revalidation Fund Transfer Financial Reasons Return Technical Reasons ECS Return Through Online Tax Net Payment (E Banking Tax) Through Branch Cheque Purchase Charges Travelers Cheque Encashment

1000 Nil

* Free

* Free

* Free

Think Investment. Think Kotak. * * Free Free

50

100 300 Nil 300 Nil 100 per request 0.5/1000 per Day

* * Free * Free * *

* * Free * Free * * *

* * Free * Free * * *

* * Free * Free * * *

* * Free * Free * * *

Foreign Currency Conversion Charge# TOD Charges Stop Payment

1% of TC * Amount + FCY Conversio n Chrg 100 *

Individual or Range

500 100

* *

* *

* *

* *

* *

Please Note: * Indicates Standard Charges are Applicable Abbreviations Used: For all value figures L = Lakhs & K - Thousand; Prev = Previous; Chq = Cheque; Std = Standard; Chrg = Charge; Corr = Correspondent; Txn = Transaction; p.m. = per month; p.a. = per annum; Avg = Average; FCY = Foreign Currency; TOD = Temporary Overdraft No Free Limits for Current Accounts maintaining less than 75% of the required product AQB: Product wise Free Limits offered on various transactions and services shall be applicable only if the Average Quarterly Balance (AQB) maintained in the account in that quarter is at least 75% of the
50

Swami Vivekanand MBA College

Think Investment. Think Kotak. product AQB; else standard charges shall apply as per the GSC in effect. Additionally, AQB non maintenance charge will also be applicable as AQB maintained is below 100% of required product AQB. # # Neo Current Account is offered in select locations only. ** Indo - Nepal Remittance Scheme (NEFT Charges): If beneficiary maintains an account with Nepal SBI Bank Ltd. (NSBL): Rs. 25 per txn (incl all taxes) If beneficiary does not maintain an account with Nepal SBI Bank Ltd.(NSBL) : Upto Rs 5000 Rs 75 per txn & beyond Rs 5000 - Rs 100 per txn (incl all taxes) $$ The Bank reserves to its sole discretion, the right to discontinue this service without any prior intimation or consent of the customer, if at least 10 credit transactions (deposits) per month do not happen in the customer's account. The customer can still opt to continue availing this service at a charge of Rs. 250 p.m. (excluding all taxes) thereafter. # Applicable for all transactions which involve Foreign Currency Conversion. This charge is applicable from May 16, 2008 as per the CBDT Circular @ Free Cash Deposit Limits & Cash Handling Charges for OD Accounts: Free Limit (Home branch only): For CA with OD against TD - 5 times of previous months Avg Credit Balance; For CA with OD facility - 5 times of previous months Avg Credit Balance + 2 times of previous months Avg OD Utilization or Avg Debit Balance. Charges beyond Free Limit: Rs. 2.50/1000 of cash deposited and part thereof + Service Tax as applicable. Service Charges to Account Holders in Rural / Semi-urban Branches Classic Current Account is available in Rural / Semi-urban branches with reduced AQB requirement of Rs. 10,000. The features offered and charges applicable shall be the same as Pro Current Account, where the AQB requirement is Rs. 50,000 except for Home Banking Service which is offered only at select locations. Charges as Below Applicable for Types of Current Accounts not Specified Above Synergy Current Account is available to customers of other businesses within the group. Same features & charges as Current Edge Account are applicable at a reduced AQB of Rs. 10,000 . Cash Credit Account is available for Business Banking Group customers, Kotak Logistics Account is available for Customers of Commercial Vehicles Finance Division, Business Pro Account is available for Customers of Emerging Corporate Group, Property Vantage Account is available for Customers of Home Finance Division, Agri Account is available for Customers of Agri Finance Division , Business Account is available for Personal Loan Division customers & Business Finance Account is available for all customers with working capital requirements. Same features & charges as Current Pro Account are offered at NIL AQB for all these types of accounts, except cash related Home Banking services which are not offered to these customers. All charges are exclusive of the Service Tax and education cess, which is currently 10.3%. The same is subject to change from time to time. All charges are subject to revision with an intimation of 30 days to account holders. Closure of account due to revision of charges will not be subject to account closure charges.

[source: - www.kotak.com/charges & fees]


51

Swami Vivekanand MBA College

Think Investment. Think Kotak. (ii) General Schedule of Features and Charges for Corporate Salary Account

52

Swami Vivekanand MBA College

Think Investment. Think Kotak.

[Source: - www.kotak.com/charges & fees]


53

Swami Vivekanand MBA College

(iii)

Think Investment. Think Kotak. General Schedule of Features and Charges for Savings Accounts Effective Jan 1, 2010

Particulars AVERAGE QUARTERLY BALANCE (AQB) REMITTANCE DD AT BRANCH LOCATION / PAY ORDER DD AT OTHER THAN BRANCH LOCATION DD/PAY ORDER BY CASH PAYMENT (Applicable for customers not having a Savings Account) FCY DD

Standard Charges (Rs.) NA 2.5 per 1000 (Min 50 Max 10000) 2.5 per 1000 (Min 50 Max 10000) 2.5 per 1000 (Min 50 Max 10000) 500 plus Foreign Currency Conversion Charges 250 plus Foreign Currency Conversion Charges 1000 plus Foreign Currency Conversion Charges Free Up to 100000: 5; >100000 : 25 100000 to 500000:25; >500000: 50 Free Instrument value up to 500 : Free; > 500 but < 10000: 35; 10000 to 100000: 100; > 100000 : 150 Instrument value < 10000: 35; 10000 to 100000: 100; > 100000 : 150 0.3% of TC Amount (Min 50) Edge 10000 * * NA Pro 20000 Free upto 100k per day Free upto 50k per day NA Ace 50000 Free Free upto 100k per day NA

FCY TT - Corr Bank Charges borne by beneficiary FCY TT - Corr Bank Charges not borne by beneficiary FUND TRANSFER NEFT ( PER TRANSACTION) ** RTGS ( PER TRANSACTION) COLLECTION LOCAL CLEARING CHEQUE OUTSTATION CHEQUE COLLECTION - BRANCH LOCATION (PER INSTRUMENT) OUTSTATION CHEQUE COLLECTION - OTHER THAN BRANCH LOCATION (PER INSTRUMENT) TC ENCASHMENT

Free Free *

Free Free *

Free Free Free

Free *

Free Free

Free Free

Free

Free
54

Swami Vivekanand MBA College

Think Investment. Think Kotak. plus Foreign Currency Conversion Charges FCY CHEQUE COLLECTION 500 plus Foreign Currency Conversion Charges ANYBRANCH BANKING CHARGES CASH DEPOSIT AT OTHER 2.5 per 1000 (Min THAN HOME LOCATION 50 Max 10000) CASH WITHDRAWAL AT 2.5 per 1000 (Min OTHER THAN HOME 50 Max 10000) LOCATION CHEQUE RELATED CHARGES AT-PAR CHEQUE BOOK 1.5 per cheque CHARGES leaf NON AT-PAR CHEQUE BOOK CHARGES INTERCITY CLEARING CHARGES CHEQUE ISSUED & RETURNED (FINANCIAL REASON) 1.5 per cheque leaf 2.5 per 1000 (Min 50 Max 10000)

* Free upto 50k per day Free upto 25 leaves per quarter Free Free upto 50k per month *

Free upto 50k per day Free

Free upto 100k per day Free

Free Free Free upto 100k per month *

Free Free Free *

CHEQUE ISSUED & RETURNED (TECHNICAL REASON) ECS RETURN 200 CHEQUE DEPOSITED & 100 RETURNED (INR) CHEQUE DEPOSITED & 1000 RETURNED (FCY) DEBIT CARD ISSUANCE CHARGE CLASSIC DEBIT CARD 100 ISSUANCE CHARGE GOLD DEBIT CARD 500 ISSUANCE CHARGE DEBIT CARD ANNUAL CHARGE CLASSIC DEBIT CARD 100 PRIMARY CLASSIC DEBIT CARD 100 SUPPLEMENTRY CLASSIC DEBIT CARD - ADD- 250 ON GOLD DEBIT CARD 500

350 per cheque for first return in a month there after 750 per cheque for cheque returned in the same month Free Free * * * Free *

Free * * * Free Free Free * * Free for 1st

Free * * * Free Free Free Free Free Free


55

(Free for First Year) * * *

Swami Vivekanand MBA College

PRIMARY GOLD DEBIT CARD SUPPLEMENTRY GOLD DEBIT CARD - ADDON ATM TRANSACTION CHARGES CASH WITHDRAWAL AT OWN ATM CASH WITHDRAWAL AT OTHER DOMESTIC ATM ## 500 500 Free 18.13 Per txn. (Applicable with effect from Oct 15, 2009, Free for transactions till Oct 14, 2009) 110 15 USD 5 USD 35 25 per transaction * * Free

Think Investment. Think Kotak. year, thereafter 250 pa * Free * Free Free Free Free

5 txn per Free month Free, thereafter std charge. * * * * Free * * * * Free

CASH WITHDRAWAL AT INTERNATIONAL ATM BALANCE ENQUIRY AT INTERNATIONAL ATM VISA GLOBAL ASSIST CHARGES VISA GLOBAL ASSIST CHARGES FOR LOST CARD DECLINE IN ATM/POS TRANSACTION DUE TO INSUFFICENT BALANCE HOME BANKING CHARGES CASH PICK-UP / DELIVERY

Free Free * * Free

150

* * * * Free * Free * * * *

INSTRUMENT PICK-UP / 50 DELIVERY STANDING INSTRUCTION STANDING INSTRUCTION 50 SET-UP STANDING INSTRUCTION 25 AMDENDMENT STANDING INSTRUCTION Free EXECUTION STANDING INSTRUCTION 25 FAILURE CERTIFICATE & REPORT ISSUANCE CHARGES CURRENT YEAR BALANCE Free AND INTEREST STATEMENT PREVIOUS YEAR BALANCE 100 AND INTEREST STATEMENT SIGNATURE VERIFICATION 25 CERTIFICATE PHOTO ATTESTATION 50 ADDRESS CONFIRMATION 50

One call per day Free One call per day Free * * Free * Free * * * *

One call per day Free Free Free Free Free Free Free Free Free Free Free
56

Swami Vivekanand MBA College

FOREIGN INWARD 100 REMITTANCE CERTIFICATE DUPLICATE TDS 100 CERTIFICATE ACCOUNT STATEMENT & PASSBOOK PHYSICAL ACCOUNT Free STATEMENT (QUARTERLY) MONTHLY E-MAIL ACCOUNT Free STATEMENT ACCOUNT STATEMENT 300 per qtr. WEEKLY (PHYSICAL) ACCOUNT STATEMENT 1500 per qtr. DAILY (PHYSICAL) DUPLICATE /AD-HOC Through Branch: STATEMENT BRANCH 100; Through BANKING (90 days) Net/ATM: 50 PASS BOOK (IN LIEU OF Free ACCOUNT STATEMENT) DUPLICATE PASSBOOK 250 OTHER CHARGES NON MAINTENANCE NA CHARGE (QUARTERLY)

* * Free Free * * * Free *

Think Investment. Think Kotak. * Free * Free Free * * * Free * Free Free Free * * Free Free Free

AQB more than 50% but less than required AQB: 750; AQB less than 50%: 1000 CHARGES IF AQB Standard charge is * MAINTAINED IS LESS THAN applicable OR EQUAL TO 75% OF (irrespective of STIPULATED REQUIREMENT free each product) # for Cheque leaf, DD/BC, Decline in ATM/POS transaction due to insufficient balance , and Home Banking. Phone Banking @ 50 per call, Debit Card @ 75 per qtr. and Cash Deposit @ 4 per 1000. DD / PO / BC REVALIDATION / 100 * CANCELLATION - INR DD / PO / BC REVALIDATION / 500 plus Foreign * CANCELLATION - FCY Currency Conversion Charges Swami Vivekanand MBA College

AQB more 1200 than 50% but less than required AQB: 750; AQB less than 50%: 1000 * *

* *

* *

57

REGENERATION OF PIN (ATM/PHONE/NET) CLASSIC DEBIT CARD REPLACEMENT OF LOST/STOLEN CARD GOLD DEBIT CARD REPLACEMENT OF LOST/STOLEN CARD STOP PAYMENT - SINGLE / RANGE OF CHEQUES FOREIGN CURRENCY CONVERSION CHARGE

50 ( sent through courier) 200 500

* * *

Think Investment. Think Kotak. * Free * * * Free

100; Free over net * * Free banking Individual: 50; * * * Non Individual: 100 ACCOUNT CLOSURE (If closed NA 600 600 1200 after 1 month and before 7 months of a/c opening) DAILY BALANCE SMS ALERT 200 per annum * * * WEEKLY BALANCE SMS 75 per annum * Free Free ALERT TAX COLLECTION CHARGE Free Free Free Free THROUGH INTERNET BANKING TAX COLLECTION CHARGE 100 * * Free AT BRANCH TOD CHARGES 500 * * * CHEQUE PURCHASE 0.5/1000 (Min 50 * * * CHARGES Max 10000) RECORD RETRIEVAL 100 per request * * Free CHARGES * Indicates Charged Service. Applicable Charges will be as per Standard Charge. # Not Applicable for Easy (No-Frills) Savings Account. ## Cash withdrawal limit from other Domestic ATM is Rs. 10000 per transaction. ** Indo - Nepal Remittance Scheme (NEFT Charges): If Beneficiary Maintains an Account with Nepal SBI Bank Ltd. (NSBL): Rs. 25 per txn (incl all taxes) If Beneficiary does not Maintain an Account with Nepal SBI Bank Ltd (NSBL): Upto Rs 5000 - Rs 75 per txn & beyond Rs 5000 - Rs 100 per txn (incl all taxes) Service Charges to account holders in Rural / Semi-urban branches Savings Nova and Savings Classic Accounts are available in Rural / Semi-urban branches with reduced AQB requirement of Rs. 5,000 and Rs. 10000 respectively. The features offered and charges applicable are the same as Savings Edge and Savings Pro where the AQB requirement is Rs. 10000 and Rs. 20000 respectively. Service Charges for Senior Citizens Following charges are waived in case of accounts where the primary account holder is a senior citizen: Duplicate Pass book issuance, Account Closure charges, Cheque Return (Outward i.e. cheque deposited for collection and returned) Additionally Standard Charges for DD/BC Issuance (Indian Rupees) will be Rs. 2 per 1000 (as against regular charges of Rs. 2.50 per Rs.1000). Service Charges for Synergy Savings Account Synergy Savings Account will be same as Edge Savings Account with reduced AQB requirement of Rs. 5000
58

Swami Vivekanand MBA College

Think Investment. Think Kotak. Service Charges for Easy (No-Frills) Account For Easy (No Frills) Account, Minimum AQB requirement: Rs. 100, Non-maintenance Charge : Rs. 25/- per quarter. Account Closure Rs. 100, Classic Debit Card issuance charge waived: First Cheque book: Free, thereafter, Standard Charges will apply, Home Banking not offered. All other services will be charged as per the Standard Charges. Please Note All Services, where a free limit is specified, usage beyond the free limit will be charged as per the standard charge of the respective service. For all value figures k = 1000 Charges are exclusive of the Service Tax and education cess, which is currently 10.3%. The same is subject to change. The above charges are subject to revision with a prior intimation of 30 days to all account holders. Closure of account due to revision of charges will not be subject to account closure charges. Monthly physical statements will be issued free to account holders on them personally visiting the home branch for the same. (iv)General Schedule of Features and Charges for Loan Rates as of November 1, 2008 Constructio Saral Auto Tractor n Finance Equipment Upto 3% of Upto 3% Upto 3% Loan of Loan of Loan amount amount amount Upto Rs.5000 Applicable as per the respective States Stamp Act Upto Rs.5000 Upto Rs.5000 Applicabl e as per the respective States Stamp Act Upto Rs.2500 per Agreemen t 3% of Overdue Amount, compound ed monthly 30% of penal and cheque bouncing
59

Loan Loan Processing Charges Documentation charges Stamping Charges

Personal Loan Upto 3% of Loan amount Upto Rs.5000 Applicabl e as per the respective States Stamp Act Upto Rs.2500 per Agreemen t 3% of Overdue Amount, compound ed monthly 30% of penal and cheque bouncing

Housing Finance Upto 1.25% of Loan amount 0.5% of the Loan amount Applicable as per the respective States Stamp Act

Commerci al Vehicle Upto 3% of Loan amount Upto Rs.5000 Applicable as per the respective States Stamp Act

Loan Cancellation charges

Overdue Interest

Collection charges

Applicabl e as per the respective States Stamp Act Upto Upto Upto Upto Rs.2500 Rs.2500 Rs.2500 Rs.2500 per per per per Agreement Agreement Agreement Agreemen t 3% of 3% of 3% of 3% of Overdue Overdue Overdue Overdue Amount, Amount, Amount, Amount, compound compound compounde compound ed ed monthly d monthly ed monthly monthly 30% of 30% of 30% of 30% of penal and penal and penal and penal and cheque cheque cheque cheque bouncing bouncing bouncing bouncing Swami Vivekanand MBA College

Dishonor charges per Instance Swap Charges( Replacement of PDCs) Prepayment Interest

charges Rs.750.00 Upto Rs.500 per Swap per Instance 6%,if within 6 months of the date of Agreemen t, 5% after 6 months NA Rs.500/Rs. 1000/NIL NA

charges Rs.750.00 Upto Rs.500 per Swap per Instance 2% of Principal Outstandin g +2% on amount prepaid in last 12 months NA Rs.500/Rs. 1000/NIL NA

charges Rs.750.00 Upto Rs.500 per Swap per Instance 5% of Principal outstandin g

Think Investment. Think Kotak. charges charges charges Rs.750.00 Rs.750.00 Rs.750.00 Upto Rs.500 per Swap per Instance 5% of Principal outstanding Upto Rs.500 per Swap per Instance 7% ,if within 12 months of the date of Agreemen t, 5% after 12 months NA Rs.500/Rs. 1000/NIL NA Upto Rs.500 per Swap per Instance 5% of Principal outstandin g

Audit and Inspection charges Duplicate Issue of NOC Solvency Certificate No Due Certificate Charges for changing from Fixed to floating rates of Interest and Vice versa

NA Rs.500/Rs. 1000/NIL NA

NA Rs.500/Rs. 1000/NIL NA

Rs.1000/ per year Rs.500/Rs. 1000/NIL NA

(v) General Schedule of Features and Charges for Credit Cards Rates as of April 19, 2009 Types of Cards League Royale 3000 / 25000 8500 / 12000 Nil Nil Nil Nil 3.10% 3.10% Rs.300 per Rs 10,000 Nil Rs. 350 Rs 500 Rs 300 3.50% Waived Waived N.A. Rs.300 per Rs 10,000 Nil Rs. 350 Rs 500 Rs 300 3.50% Waived Waived N.A
60

Fee & Other Parameters Entrance Fees Annual Fees Add On Card Service Charges on outstanding Balance ATM Cash Withdrawal / Call a draft / Fund Transfer Hot listing Charges Late Payment Charge Over Limit Charge Bounced payment Foreign Currency Mark Up Railway Booking Surcharge Fuel Surcharge Outstation Cheque Processing

Fortune Nil Nil 299 3.3% 199 per Rs 10,000 Nil Rs. 500 Rs 500 Rs. 500 3.50% Waived Payable N.A.

Trump Nil Nil 299 3.3% Rs.300 per Rs 10,000 Nil Rs. 500 Rs 500 Rs. 500 3.50% Waived Payable N.A.

Swami Vivekanand MBA College

Think Investment. Think Kotak. Fee Nil Nil Nil Nil Reissue / Replacement Card & PIN Nil Nil Nil Nil Charge Slip Request Nil Nil Nil Nil Annual Nil Nil Nil Nil Renewal Nil Nil Nil Nil Machine Surcharge at ATMs Nil Nil Nil Nil Balance Enquiry Charges at Non Parent Bank ATM Nil Nil Nil Duplicate Statement Request Nil Please Note: y Service tax & education cess, would be charged as per statutory regulations on the interest & fees and other charges cha Card. y Fuel surcharge to be waived only for transactions between values of Rs.400 Rs.4000. Maximum Fuel surcharge waive calendar year (vi) Standard Tariff Structure for Mutual Fund Transactions effective 10 th September, 2009 Lump sum Transactions Transactions through Kotak Investment Account 1.25% Nil for transactions less than Rs. 25000 Transactions through AMC application forms 1.50% Investment Account Maintenance Charges Rs. 100 per quarter or transaction charges whichever is higher

Standard Charges Transactions through Net Banking for all customers

MF SIP or MF SI transactions Transaction Type Transactions through Kotak Transactions through AMC Investment Account application forms MF SIP/ MF SI of Nil Rs. 200 any value MF SIP/MF SI Rs. 200 if cancelled within 3 months NA Cancellation of setup MF SIP/MF SI Rs. 100 per failure NA Failure Please Note: Wherever charges are applicable as per the above schedule, the minimum charges will be Rs.25/Charges are applicable on purchases and purchase type transactions in equity mutual fund schemes and are exclusive of Service Tax and Education Cess Transactions through Kotak Investment Account can happen through Net Banking, Phone Banking and through the Branch by signing a single form (Mutual Fund Transaction Request Form) MF SIP/MF SI has to be for a minimum duration of 12 months irrespective of the frequency. Else a Setup charge of Rs. 200 will be applicable (vii) General Schedule of Features and Charges for Trade Charges FREE Rs. 100 0.15% subject to min Rs. 500
61

Type of Service Inward Remittances FIRC Issuances Export Bills for Collection & under LC (for bill

Swami Vivekanand MBA College

Think Investment. Think Kotak. amounts upto INR 500,000 or its equivalent) Export Bills for Collection & under LC (for bill amounts over INR 500,000 or its equivalent) Export LC Advising Non Trade Outward Remittances Advance Payments for Imports Direct Import Bills Import Bills for Collection 0.065% subject to min Rs. 500 Rs. 1000 0.125% subject to min Rs. 500 0.15% subject to min Rs. 500 0.125% subject to min Rs. 1000 0.25% subject to min Rs. 1000

[Source: - www.kotak.com/charges & fees]


62

Swami Vivekanand MBA College

Think Investment. Think Kotak. 3.6 Place Services are intangible as well as in separable. The two characteristics do not alone the service to follow the same channel option available for goods marketing. Due to the intangibility characteristics of service traditional wholesaler and retailer cannot be used. Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Within a small span of 6 years, the bank has spread it wings in several sphere of finances. Presently, spread in 82 cities in India, the bank caters to the needs of its 5.9 million customers spread throughout the length and breadth of country and even abroad. By the end of FY 2007-2008, the Kotak Mahindra Bank had about 178 branches spread all over the country and it plans to add some more branches by the end of FY 2010. Now Kotak Mahindra is having more than 250 branches. Marketing, production, distribution, & consumption are simultaneous activates in service. However, the service has the advantage of direct selling approach through which service can be offered to the customer at the lower cost. This does not mean that the direct selling is only way to sell the services. KOTAK MAHINDRA BANK is having essential importance of place, because on the basis of place only the bank can fix their AQB, accounts, & even investment. If we take the example of Changodar rural branch & urban branch of KOTAK there is some vary in process of transaction & AQB. On the basis of place bank decide their business of a whole year. Kotak mahindra bank have also developed one software ob their website called nearest ATM locator. With the help of this software you can locate the ATM which is nearest to your house. There is also one facility that you can also find which the nearest branch from your house is.

63

Swami Vivekanand MBA College

Think Investment. Think Kotak. 3.7 Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Enjoy the safety & convenience of Kotak Debit Card, Kotak Net Banking or Kotak Gold netc@rd and avail of these fantastic offers: Kotak netc@rd Related Offers Offer / Discount Simply use your Kotak Gold netc@rd and enjoy the comfort of viewing movies at home with Seventymm.com Valid Until Jul 31, 10

Get a free ticket for your companion at pvrcinemas.com with Sept 30, 10 your Kotak Gold netc@rd! Now avail great offers & discounts on Rediff.com Oct 31, 10

Mobile Banking Related Offers

Offer / Discount

Valid Until

Simply login to Kotak Mobile Banking & get an assured gift! July 20, 10

64

Swami Vivekanand MBA College

Thi

t Thi

l i &

t ti

1) Age & Servi es used by the customers: Thi anal i i made t know the relation between the age and servi es used by the customers. Main services are fi ed deposit a/c, savings a/c, loan a/c, investment etc. Age service Current a/c Savings a/c i ed deposit nvestment loans Salary a/c 2 1 2 0 0 3 3 36 20 3 12 55 0 10 2 0 2 7 0 1 1 0 0 0 16 0 0 0 1 0 Below 25 25-45 46-60 Above 60 Company

60 50 40 30

55

36
Below 25 25-45

20
20 10 0

16 10 230 1 0 2 2 0 0 0 0 3 12 7 0 2 1 3 0

46-60 Above 60 Company

E planation: From the above chart I can conclude that the salary a/c is mostly used by the age group of 2545. The savings a/c users are mostly of the age 25-45. The current a/c services are majorly used by the companies. So from that analysis I found that most customers are related with the bank by salary and savings a/c.

65

i i

MB C ll

Think Investment. Think Kotak. Hypothesis: - [CHI SQARE TEST] Step: -1 H0: There is a relation between age and the services used by the customers. Step: -2 H1: There is no relation between the age and the services used by the customers. Step: -3 Level of significance: - = 5% Step: -4 Degree of= (R-1) (C-1) = (5-1) (6-1) = 20
2 Tab

= 31.41

Fe= (RT*CT)/GT
0.94915254 15.3050847 2.491525424 0.23728814 2.01694915 2.16949153 34.9830508 5.694915254 0.54237288 4.61016949 18.220339 18.220339 2.966101695 0.28248588 2.40112994

2.18644068 2.18644068 0.355932203 0.03389831 0.28813559 10.9322034 10.9322034 1.779661017 0.16949153 1.44067797 47.3728814 47.3728814 7.711864407 0.73446328 6.24293785

Step: -5
2 ca l = (Fo-Fe) 2

Fe = 2.66691
2 Tab > 2 ca l

So Ho is accepted that there is a relation between the age and services used by the customer.

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Think Investment. Think Kotak. 2) Service channels used by the customers: This analysis will be helpful to me in determining that which services or channels the customers of Kotak bank prefer the most.

Service channel Branch service ATM Credit card Mobile banking Phone banking Internet SMS banking Bill payment

No. of Users 138 140 6 18 51 53 46 6

No. of Users
Br 46 53

6 138

TM redit c rd

18 6

140

SMS Bi

Explanation: The above analysis shows that the branch services are mostly preferred by the customers. The second most favoured service is ATM & phone banking because its a convenient service. Internet and the SMS banking are also used by many of the customers of the Kotak Mahindra bank. But the service of the bill payment is at the initial stage

Swami Vivekanand MBA College

  

I ter et

51

Ph

ch service

ie e

ki g

ki g

ki g

y e t

67

Think Investment. Think Kotak. 3) Attitude and behaviour of the manager toward cus tomers: This analysis is done know that how the branch manager of the Kotak Mahindra bank behaves with the customers. From that we will also come to know that how is the personal experience of the customer with the branch manager. Satisfaction level Excellent Very good Good Fair Poor Numbers 69% 10% 18% 0% 1%

Numbers
0%
18% 1%

Exce e t


Very g


10%

F ir


69%

Explanation: People is the most important p of the services marketing. So from the above study I can conclude that most of the customers are having the excellent experience with the branch manager in context of his behaviour and attitude. There is only 1 person who has said that the behaviour is poor. So overall experience of the customers with the branch manager is very nice.

Swami Vivekanand MBA College

 

68

Think Investment. Think Kotak. 4) Rating the employees on the basis of the different skills: This analysis is done to get the information how the employees are being rated on the basis of the behaviour, product knowledge and skill. This analysis will explore the capabilities of the staff employed by the Kotak Mahindra bank.

Response Skills Behaviour Product knowledge Speed of service

excellent

Very good

Good

Fair

Poor

105 82

23 45

13 13

0 3

1 1

79

38

20

120
100

105
82

79
$

60 40 23 13

Ve y goo 45
$ (

38
13 20 3 1
$

oo

0 1
0
"

1 1

E planation: From the above chart I can conclude that the all the dimensions of the employees like behaviour, product knowledge, and speed of service are rated excellent, very good. It can be analysed that the staff of the Kotak Mahindra bank Changodar branch is highly extrovert and believes in maintaining the relationship with the customers. Only few people are dissatisfied with the product knowledge and the speed of the service.

Swami Vivekanand MBA College

! "

&$ % $ "#

Be av ou
!

o uc knowle e

Spee of se v ce

20

10 )

oo

'

80

excellen
"

69

5) People faced problems while using the services of the Kotak i) General information: -

Think Investment. Think Kotak. ahindra bank:-

Having problem Yes No

No. Of customers 15% 85%

No Of custo ers
3

15

Yes No
3

85

E planation: Kotak Mahindra bank is well known for its accuracy of its services. This analysis is done to check whether it is true or not. This analysis shows that 15% of the customers are having some kind of problem in using the services of the bank. But it is not a major part because 85% of persons are fully satisfied with the services. It would also be helpful to the bank to know what problems the customers are facing.

70

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Think Investment. Think Kotak. Hypothesis: - [Z Test] Step: -1 H0: p = 0.8 [having no problem] Step: -2 H1 p 0.8 [two tailed test] Step: -3 Z Tab (0.05) = 1.645 p = 0.85 Step: - 4 Z ca l = pP pq n = 0.85 - 0.8 0.80.2 150 = 1.53 Step: - 5 Z Tab > Z ca l Hence, H0 is accepted and it is proved that 85% people are not having any problem with the kotak mahindra bank.

71

Swami Vivekanand MBA College

Think Investment. Think Kotak. (ii) Types of the problem: Problem Statement Internet banking password SMS banking ATM Cheque and Cash pick up facility Staff knowledge Cheque book delivery Account opening speed problem Speed of service Process of taking loan Language problem No. Of customer 5 2 3 4 1 1 1 1 2 1 2

No. Of customer
6 5 4 3 2 1 0 5

4 3
2 2 2

1
No. O c stomer
5 4

Explanation: The above analysis shows the frequency of the problems face by the customers o the Kotak Mahindra bank. As we can see that the maximum problem are related to the statement. The statements are not being delivered at the proper addresses and some customers are not receiving the free statements every three months. Another problem is related to the SMS banking. Some customers are not receiving the messages after any transaction. Some rural customers are also facing the problem of language as they are not able to understand the English language at the ATMs.

72

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Think Investment. Think Kotak. Hypothesis: Step: -1 H0: Frequency distribution is poison. Step: -2 H1: Frequency distribution is not poison. Step: -3 = 5%

Step: -4 Degree of freedom = k-2 = 5-2 = 3


2 Tab

= 7.8417

Step: -5 No. Of arrivals F0 F0 arrivals Expected probabilities 0 1 2 3 4 5 Total = 20/16 = 1.3


2

Expected frequencies 4.36 5.67 3.68 1.6 0.52 0.13

(Fo-Fe) 2 Fe 0.0939 0.0792 0.1257 0.225 0.4431 5.8223 X2 ca l = 6.79

5 5 3 1 1 1 16

0 5 6 3 4 5 20

0.2725 0.3543 0.2303 0.0998 0.0324 0.0084

ca l

<

Tab

Hence, H0 is accepted that the problem occurrence related to the services is poison distribution means these problems are not regularly occurring.

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Swami Vivekanand MBA College

Think Investment. Think Kotak. 6) Processing time of opening an account: As we have taken the process as one of the scope of our study we have to analyse how the process of opening an account at the Kotak Mahindra bank is. How much it takes to open an account at the Kotak Mahindra bank.

Processing time 1 day 2 days ore than 2 days

Customers 72 53 25

Custo ers
80 60 40
9

72 53 25

20
0

Custome s
Cus ome s

1 day

2 days o e than 2 days


9 8

E planation: Generally the account opening time of any bank is 1 or 2 days. But here we are getting some different results. According to our research the 25 customer said that opening an account at KotakMahindra bank takes more than 2 because of its lengthy procedure. As our research 125 customers said that the account is being opened in less than 2 days. So this is little bit mix result.

Swami Vivekanand MBA College

74

Think Investment. Think Kotak. Hypothesis: - [Z Test] Step: -1 H0: The time taken for process of opening account is reasonable. Step: -2 H1: The time taken for process of opening account is not reasonable. Step: -3 level of significance =5% [two tailed test] Step: -4 Z Tab = 1.645 Step: -5 Z cal = x S.D n = 50-40 23.64 150 = 5.18 Z Tab < Z ca l Hence, the HO is rejected and we can say that customers are finding the time taken for opening an account not reasonable.

75

Swami Vivekanand MBA College

7) How is the procedure of opening an account: -

Think Investment. Think Kotak.

The procedure of opening an account includes the process of document verification, form filling process. Through this analysis we have to check that whether the customers are satisfied with that procedure or not.

Level Very simple Simple Complex Very complex

No. Of customers 73 68 7 2

No Of custo ers
No Of custome s
@ C

73

68

2
Ve y s mple
A @

S mple
@ B

Complex Ve y complex

Explanation: If we look at the analysis of opening an account than we can say that the process of opening an account is quite simple at the Kotak Mahindra bank because only 9 people are saying that the process is length. These people are having some problems of documentation therefore according to them the process of opening the account is lengthy. But overall analysis shows that process of openingan account is simple.

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8) Process of taking a loan: -

Think Investment. Think Kotak.

Level Very simple Simple Complex Very complex

No. Of customer 5 5 5 2

No Of custo er
6
4 5

2 0

2
G F E

No Of custome
D

No Of custome

Explanation: As we have got very less customers who have taken loans from the KotakMahindra bank the result is on the basis of that only. As per analysis the process of taking loan is little bit complex because number of customer who has said that the process is complex is 5 which is equal to the customers who have said that it is very simple. Two customers have responded that the process of taking loan is very complex.

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9) Processing time of some of the important transactions:-

Think Investment. Think Kotak.

In any bank some transaction like term deposit, demand draft, cash deposit, and cash withdrawal are very much important. Customers the bank wants these services to be quick. In case of delay customers become annoyed of that. So we have analysed the processing time of those transactions. Excellent

Level

Very Good

Good

air

Poor

Transactions Term deposit Demand draft Cash deposit Cash withdrawal 14 18 92 68 6 7 22 47 7 5 7 10 3 0 0 0 1 0 0 1

100 90 80 70

92

68 47
S R Q

67

7 5 710

3000
HI

1001
H

Explanation: As per the analysis the services like term deposit, demand draft, and cash deposit and cash withdrawal are excellently provided by the Kotak Mahindra bank. Speed of these services is excellent as per the survey of the customers. Because almost all the customers have responded that Kotak Mahindra bank provides these services very quickly. They dont have to wait too much for that.

Swami Vivekanand MBA College

Excellent

Ve y Good

Good

Fa

oo

18 14

22

Cash w thdrawal

60 50 40 30 20 10 0

e m depos t

Demand draft Cash depos t

78

Think Investment. Think Kotak. Hypothesis: - [CHI SQUARE TEST] Step: -1 H0: The processing time of different transactions is appropriate. Step: -2 H1: The processing time of different transactions is not appropriate. Step: -3 Level of significance: - = 5% Step: -4 Degree of= (R-1) (C-1) = (4-1) (5-1) = 12
2 Tab

= 21.03

Step: - 5 Fe: 19.32 18.7 75.43 78.55 8.25 7.99 32.21 33.55 2.92 2.82 11.39 11.86 0.3 0.29 1.18 1.23 0.2 0.19 0.79 0.82

ca l

= (Fo-Fe) 2 Fe

= 9.72
2 ca l < 2 Tab

Hence the H0 is accepted and it is proved that the process of various important transactions is appropriate.

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10) Analysis of the charges taken by Kotak verification, statement, core banking] : -

Think Investment. Think Kotak. ahindra bank [demand draft, passbook entry,

Level

No. of customers

Affordable High Very high

103 17 30

30

17
103

Explanation: This analysis shows that charges taken by the Kotak Mahindra bank are affordable because 103 have responded the same. There are also some respondents around 47 who found the charges to be high. But from overall analysis we can conclude that the charges are affordable by the general public. Some people feel that the statement charges and the AQB charges are high. The annual ATM charges are also found high by some of the respondents.

Swami Vivekanand MBA College

Affordable

H gh

Very high

80

Think Investment. Think Kotak. 11) Internal environment of the Kotak Mahindra bank: This analysis is one of the parts of the physical evidence. This analysis will abstract the detail of what the customer feel about the internal environment when he enters into the bank.

Level Excellent Very good Good Fair poor

No. Of customers 98 14 36 1 1

No. f customers
r 1
``c

F ir 1
a `` Y b

Exce e t
V UU

Explanation: The analysis shows that the internal environment of the Kotak Mahindra bank is excellent, because 98 have responded excellent about the internal environment. The respondent according to whom the internal environment is fair or poor are only 2.

XW W

Very g

14
98 0 20 40 60 80 100 120

Swami Vivekanand MBA College

h` g

e `d f

36

c st

ers

81

Think Investment. Think Kotak. 12) Facilities available at the Kotak Mahindra bank: -

Facilities

No. Of customers saying yes

Notice board Sitting arrangement Water facility Parking facility Air condition Receipt facility

100 121 133 121 135 144

144

100

121
135 133 121

Explanation: According to this analysis the Kotak Mahindra bank provides all the services related to the physical evidence. Kotak Mahindra allows its customers to feel at ease when they came at the bank. As per our research we have found that all the respondents are happy with the physical evidence related facilities of the bank.

Swami Vivekanand MBA College

r ki g

ci i ty

ir c

i ti

t u

tr r t

y s rp q

t ice

Sitti g rr

ge e t

W ter

Recei t

y w r r v

c i i ty

pi yx

ci i ty

82

Think Investment. Think Kotak. 13) Overall experience of the Kotak ahindra bank: -

Levels Excellent Very good Good Fair Poor

No. Of customers 94 16 33 5 2

No Of custo ers
100 90 80 70 60 50 40 30 20 10 0

94 No Of customers
16 33

Explanation: This analysis is most important as per the point of view of bank because it show the level of the satisfaction of the customers with the overall experience of the bank. As per our analysis Kotak Mahindra bank has succeeded in maintain the customer satisfac tion level with the different aspects. The analysis shows that approximately 140 customers out of 150 are happy that they have opened an account with the Kotak Mahindra bank.

83

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Think Investment. Think Kotak. Hypothesis: - [F test- Randomized block] Level Sex Business class Service class Professionals
40 42 6 6 8 0 5 24 3 0 5 0 0 1 1 51 80 10

Excellent

Very good

Good

Fair

Poor

Total

Step: -1 H0: There is relationship between different classes and the overall experience of Kotak Mahindra bank. Step: -2 H1: There is no relationship between different classes and the overall experience of the kotak mahindra bank. Step: -3 Level of significance =5% Step:-4 Dfc = C-1=5-1=4 Dfr = n-1=3-1=2 Dfe= (C-1) (n-1) = 8 F tab = (0.05, 4, 8) = 3.84 Step: -5 SSC= n (Xj-x) 2 = 1671.47 SSR = C (Xi-x) 2 = 494.8 SSE = (Xij - Xj- Xi + x) = 644.53 SST = 2810.8 Source variance Treatment Block Error Total F Cal = 5.19 F Cal > F tab Hence H0 is rejected & there is no relationship between diffrent and overall experience of Kotak Mahindra bank. of SS
1671.47 494.8 644.53 2810.8

Df 4 2 8 14

MS 417.87 247.4 80.57

F Cal 5.19

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Think Investment. Think Kotak.

Chapter 5 Finding, Recommendations, Conclusion

5.1 Findings Major findings after analysing the primary data are as under.  Almost all the customers are satisfied with the attitude and behaviour of the staff and the branch manager.  Customers are also satisfied with behaviour, product knowledge and speed of service of the Kotak Mahindra bank.  Only 15% people are having problem with the services of the Kotak Mahindra bank and these problems are mostly of statement delivery, SMS service and the internet service.  Many customers have complained that they are not receiving the free quarterly statements at the proper addresses and some customers are complaining that they are not receiving SMS after making any transactions. Some customers have complained that cheque pick up facility is also not properly provided.  Customers are satisfied with the processing time and the procedure of opening an account because approximately 95% customers have said that.  Processing time of transactions like demand draft, term deposit, cash deposit and cash withdrawal is very quick because only 5 customers out of 150 were dissatisfied.  For processing time of loan we have got only got 17 customers. Out of that 5 customers were complaining that the process is very complex.  If we look at the different charges like statement, verification, core banking, demand draft and SMS banking then most of the customers are complaining that the charges of statement and charges of not maintaining average quarterly balance are very high.  According to the customers of the Kotak Mahindra bank the internal environment of the bank is very comfortable and friendly.  If we talk about the physical evidence facility of the Kotak Mahindra bank, than excellent facilities are provided.  Most of the customers have responded excellently about the overall experience of the Kotak Mahindra bank.  Some customers have also responded that grievance procedure of the Kotak Mahindra bank is not proper and slow.

85

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Think Investment. Think Kotak. 5.2 Recommendations  As Kotak Mahindra bank Changodar is a rural branch many customers are not able to understand the English language at the ATMs, so they should also provide the option of Hindi, and Gujarati at their ATMs.  As the Kotak Mahindra Changodar is a rural branch they should provide different schemes for rural customers then same as the urban customers.  Kotak Mahindra Changodar branch should appoint some agents from the Changodar area itself who can make understand the people of the Changodar about the different schemes of the bank, because they are local people and know how the rural people of the Changodar can be convinced.  Kotak Mahindra bank should give the customers the service of railway reservation because many customers were demanding.  As the banks like Axis are having tie ups with Adani CNG & gas pipeline, Kotak bank should also provide this kind of facility.

86

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Think Investment. Think Kotak. 5.3 Conclusion The summer internship project is prepared for the partial fulfilment of the MBA programme third semester. Main of this project is to put the theoretical knowledge of two semesters into practice. As result of preparing the project report on customer opinion about the services provided by the Kotak Mahindra bank in context of people, process, and physical evidence I have got the excellent exposure of the banking industry and I have understood that how the actual work of any bank is going on. I have also undertaken a survey for gathering the information about the Kotak Mahindra bank so I have also got the practical experience of doing field work and how to face the customers. This has provided me the practical experience of the marketing research. I have learnt all the dimensions of undertaking a live research. If we talk about the Kotak Mahindra bank, then I can conclude that it is the excellent bank in the banking sector and growing very quickly. As I have taken training at the Kotak Mahindra bank I have personally felt that employees of the Kotak Mahindra bank believes more in developing and maintaining the relations than increasing the business. I can conclude that almost all customers of bank are willing that they have selected Kotak Mahindra as their banker. We have found in our study that customer are very much satisfied with the employees and all other aspects of the Kotak Mahindra bank. There also some customers who have faced some problems but we cant say that thats bad because no service firm can be 100% perfect. If we talk about Kotak Mahindra bank than we can say that the bank is covering all it defects very quickly. Last but not the list I want to say that all the employees and the branch manager of the bank have supported me very heartily in completion of the project report and it was a great experience for me. If I will get a chance than I would definitely like to develop my carrier in Kotak Mahindra bank.

87

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Think Investment. Think Kotak.

Annexure (A)
GENERAL PART: 1) Name: - _____________________ 2) Age: - ______ 4) Occupation: Service Business INDIVIDUAL PART: 5) What type of relationship you are having with Kotak Mahindra bank? Current account Investment Branch services Mobile banking Gold Cash/FD Savings account Loans Phone banking Internet Equity/MF SMS banking Bill payment Insurance Infrastructure fixed deposit Professional Other 3) Sex: Account No: - __________________ Male Female

Questionnaire

6) Which service/channels are you using?

7) How is your Asset allocation ratio? [In terms of percentage] If you want to invest more than in which sector would u like to invest__________ PEOPLE: 7) Have you ever met the branch manger? Yes Excellent Very good No Good Fair Excellent Behaviour Product knowledge Speed of service V. Good Good Fair Poor Poor If yes, how was your experience?

8) How would you rate the employees on the basis of different skills?

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Think Investment. Think Kotak. 9) How is the attitude of the staff and manager toward you? Satisfaction Parameter < 1 2 3 4 5 6 7 8 9 > 10

10) Have you faced any problem with staff? Yes Behaviour PROCESS: 11) How much is the processing time for opening an account? 1 day Very simple Simple 2 days Complex Very complex More than 2 days 12) Do you think that the process of opening an account is......... No Knowledge Work speed _____________ If yes, then about which matter?

If complex, please recommend any change __________________ 14) Do you think that the process of obtaining loan is......... Very simple Simple Complex Very complex Excellent Term deposit Demand draft Cash deposit Cash withdrawal 16) According to you, various charges of Kotak Mahindra bank are....... [Demand draft, Passbook entry, Verification, Statement & Core banking] Affordable High Very high
89

15) How much are you satisfied with the processing time of following transactions? V. Good Good Fair Poor

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Think Investment. Think Kotak. PHYSICAL EVIDENCE: 17) How do you feel about the environment of Kotak bank, when you enter in the bank? Excellent Very good Notice board Sitting arrangement ATM card Credit card Internet banking Core banking Phone banking SMS banking E-Tax payment CONCLUSION: 20) How is your overall experience of Kotak Mahindra bank? Excellent Very good Yes No Good Fair Poor times? many Good Fair Water facility parking facility how Air conditioner Receipt facility Poor

18) Which basic facilities are being provided by Kotak Mahindra bank?

19) How many times do you use the following facilities in a month?

21) Would you like to suggest any one to use the services of Kotak bank? If yes, then give detail ____________________________

90

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Think Investment. Think Kotak.

(B)
(i) Balance sheet

Financial overview

Consolidated Balance Sheet as at 31st March, 2010

Schedule

As at 31st March, 2010

(Rupees in thousands) As at 31st March, 2009 3,456,689 61,768,752 628,602 919,086 138,218,407 119,790,233 37,380,445 40,176,177

Capital and Liabilities Capital Reserves and Surplus Minority Interest Employees Stock Options (Grants) Outstanding Deposits Borrowings Policyholders Funds Other Liabilities and Provisions

122A345

3,481,415 75,628,026 808,586 548,017 218,191,807 138,857,016 63,710,722 49,922,555

Total Assets Cash and Balances with Reserve Bank of India Balances with Banks and Money at Call and Short Notice Investments Advances Fixed Assets Other Assets Goodwill on Consolidation Total Contingent Liabilities Bills for Collection 6 78 9 10 11

551,148,144 20,940,828 4,127,315 194,847,770 297,242,869 6,104,142 27,851,026 34,194 551,148,144

402,338,391 10,070,254 4,304,697 133,130,275 224,976,215 3,383,402 26,439,354 34,194 402,338,391

12 381,044,916 604,783,464 6,493,241 3,175,756

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Think Investment. Think Kotak. (ii) Profit& loss a/c Consolidated Profit and Loss Account for the Year Ended 31st March, 2010 Schedule Year ended 31st March, 2010 46,011,601 54,521,404 100,533,005 17,728,575 58,668,505 10,862,326 87,259,406 13,273,599 179,984 (23,610) 13,070,005 26,912,987 39,982,992 1,402,800 402,224 400,000 353,200 69,600 726,467 (882,804) 11,900 296,613 118 37,202,874 39,982,992 37.68 37.28 10.00 (Rupees in thousands) Year ended 31st March, 2009 43,665,634 28,517,034 72,182,668 19,923,947 39,485,110 6,246,890 65,655,947 6,526,721 37,283 34,425 6,523,863 21,083,497 27,607,360 690,300 341,498 138,050 29,700 1,314,020 (2,514,373) 417,014 259,553 18,611 26,912,987 27,607,360 18.90 18.87 10.0

I. Income Interest earned 13 Other Income 14 Total II. Expenditure Interest expended 15 Operating expenses 16 Provisions and Contingencies (Refer Note 8 of Schedule 17) Total III. Profit Net Profit for the year Less: Share of Minority Interest Add: Share in profit/(loss) of Associates Consolidated Profit for the year attributable to the Group Add: Surplus brought forward from previous year Total IV. Appropriations Transfer to Statutory Reserve Transfer to Special Reserve u/s 45 IC of RBI Act, 1934 Transfer to Special Reserve u/s 36(1)(viii) of Income Tax Act, 1961 Transfer to General Reserve Transfer to Capital Reserve Transfer to Debenture Redemption Reserve Transfer from Debenture Redemption Reserve Transfer to Investment Reserve Account Proposed Dividend Corporate Dividend Tax Balance carried over to Balance Sheet Total V. Earnings Per Share [Refer Note 11 Schedule 17] Basic (Rs.) Diluted (Rs.) Face value per share (Rs.)

92

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Think Investment. Think Kotak. (ii) Cash flow statement Consolidated Cash Flow Statement for the Year Ended 31st March, 2010 Year Ended 31st March, 2010 Cash Flow from Operating Activities Net Profit After Tax Add: Provision for Income tax Profit before tax Adjustments for: Employee Stock Option Grants Depreciation on Groups property Amortization of Premium on Investments Diminution in the value of investments (Profit) / Loss on revaluation of investments (net) Profit on Sale of Associates Interest on debentures and other long-term borrowing Interest on subordinated debt and Upper Tier II Interest on refinance from institutions Provision for Non Performing Assets and contingencies Loss on sale of assets Increase/ (decrease) in Foreign Currency Translation Reserve [Refer Note 2 (F) (ix) Schedule 17] Wealth tax Adjustments for: Increase in Investments other than Associates Increase in Advances Increase in Other Assets Decrease in Cash Collateral with Banks Increase in Deposits Increase / (Decrease) in Borrowings Debenture issue expenses Increase in Policyholders Funds Increase / (Decrease) in Other Liabilities & Provisions Income Taxes Paid Net Cash Flow from Operating Activities Cash Flow from Investing Activities Purchase of Fixed assets Sale of Fixed assets Proceeds on sale of Associates 13,070,005 5,753,980 18,823,985 270,676 1,429,197 1,419,804 (512,432) (5,293,992) (496,584) 3,127,445 675,524 1,562,449 5,619,714 43,917 (282,527) 1,064 26,388,240 (56,970,843) (77,630,343) (1,025,803) 79,973,400 15,263,016 26,330,277 9,117,247 (4,943,049) (5,756,603) 15,688,588 6,523,863 3,634,416 10,158,279 545,093 1,259,323 719,193 (528,734) 857,170 3,542,579 741,962 1,642,322 3,140,326 16,225 400,231 882 22,494,851 (8,093,227) (8,284,573) (1,833,967) 176,708 1,306,240 (6,633,111) (11,998) 8,964,294 (5,055,053) (19,464,687) (4,174,258) (1,144,094) (Rupees in thousands) Year Ended 31st March, 2009

(A)

(4,281,287) 87,433 677,680 Swami Vivekanand MBA College

(1,408,698) 80,036
93

Increase in Investments in Associates Net Cash Used in Investment

Think Investment. Think Kotak. (387,913) (541,128) (B) (4,057,302) (1,716,575) (Rupees in thousands) Year Ended 31st March, 2009 (309,588) 90,276 (1,113) 6,766,330 (17,210,458) 932,000 (741,962) (1,642,322) (3,542,579) 116,268 (15,543,148) (18,403,817) 32,778,7 68 14,374,9 51 555,34 9

Consolidated Cash Flow Statement for the Year Ended 31st March, 2010 (Contd.) Year Ended 31st March, 2010 Cash Flow from Financing Activities Dividend paid including corporate dividend tax Fresh issue of share/Money received on exercise of stock options Share issue expenses Increase in Refinance Increase/(decrease) in debentures and other long-term borrowings Increase/(decrease) in subordinated debt and Upper Tier II Interest on subordinated debt and Upper Tier II Interest on refinance from institutions Interest on debentures and other long-term borrowing Increase in Minority Interest Net Cash Flow from Financing (C) Activities Net Increase in Cash and Cash (A + B + C) Equivalents Cash and Cash Equivalents at the beginning of the Year (Refer Note below) Cash and Cash Equivalents at the end of the Year(Refer Note below) Note: Balance with banks in India in Fixed Deposit (As per Schedule 7 I(i)(b)) Cash Collateral Security shown separately in operating activities Balance with banks in India in current account (As per Schedule 7 I(i)(a)) Cash in hand (As per Schedule 6 I) Balance with RBI in current account (As per Schedule 6 II) Balance with banks Outside India: (i) In current account (As per Schedule 7 II(i)) (ii) In Other Deposit Accounts (As per Schedule 7 II(ii)) Cash and Cash Equivalents at the end of the Year (304,122) 738,708 576,768 3,497,886 (261,900) (675,524) (1,562,449) (3,127,445) 179,984 (938,094) 10,693,192 14,374,951 25,068,143

313,398 313,398 2,079,453 2,195,514 18,745,314 265,277 1,469,187 25,068,143

555,349 2,086,16 6 1,613,72 7 8,456,52 7 488,483 1,174,69 9 14,374,951


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Think Investment. Think Kotak.

Bibliography
Books: 1) Marketing research By: - Naresh Mlhotra 2) Marketing management By: - Kotler, Keller, Koshy & Jha Web sites: 1) www.indiamart.com 2) www.rbi.com 3) www.kotak.com 4) www.indiatimes.com

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