Customer Relationship Management In Indian Retail Banking

A Project Study Report

On “CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN RETAIL BANKING”

Submitted in partial fulfillment for the

Award of degree of Master of Business Administration

2008-2010

Maharaja College of Management (Affiliated to Rajasthan Technical University, Kota)

Submitted By: - Submitted To:- PUNEET AUDICHYA Mrs. ANAMICA CHOPRAMBA Sem. IV FACULTY MCM

DECLARATION

I hereby declare that the work incorporated in the present research

project entitled: “CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN

RETAIL BANKING” is my own work and is original in nature. This work

(in Part or in full) has not been submitted to Rajasthan Technical

University, Kota for the award of a degree.

Place: PUNEET AUDICHYADate: MBA Semester-IV

1

CERTIFICATE

I feel great pleasure in certifying that the research project entitled “CUSTOMER RELATION SHIP MANAGEMENT IN INDIAN RETAIL BANKING”

embodies a record of the result of investigations carried out by PUNEET

AUDICHYA under my guidance.

I am satisfied with the analysis of the data, interpretation of results

and conclusions drawn.

I recommend the submission of research project.

Place: Udaipur Mrs. Anamica

Chopra

Date:

2

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mrs. Anamica Chopra,

Senior Lecturer, Marketing, for guiding me right from the inception till the

successful completion of the project. I sincerely acknowledge him/her/them for

extending their valuable guidance, support for literature, critical reviews of

project and the report and above all the moral support she/they had provided to

me with all stages of this project.

I would also like to thank the supporting staff of Maharaja College of

Management, for their help and cooperation throughout our project.

PUNEET AUDICHYA

3

PREFACE

The viewing of the marketing in business administration of an organization is a

fast growing concept in India. Marketing in any undertaking requires aptitude,

skills, expertise, knowledge and efforts in sales as well as marketing. Marketing

is considered to be the most valuable asset of the organization in revenue

generation, which is greatly influenced by the performance of its executives.

All professional post graduates course like MBA/PGDBM envisage for a

student to acquire proficiency in academic knowledge as well as its application

in practice by way of exposure to the business world. Industrial training is

therefore a part of MBA/PGDBM curriculum, which helps in developing

analytical and interpreting skills in the students through application of several

concepts of management to understand the functioning of industries. This

training was conducted in Kotak Mahindra Bank.

4

INDEXS.NO. CONTENTS PAGE

NO.

1 Chapter 1. – Introduction of Industry 1-5

2. Chapter 2. – Company Profile 6-26

3. Chapter 3. – Introduction to CRM 27-75

4. Chapter 4. – Research Methodology 76-78

Title of the Study.

Objective of the Study.

Scope of the study

Types of Research / Method of conducting research.

Limitations of Study.

5. Chapter 5 - Analysis and Interpretation 79-89

6. Chapter 6. - Comparative Analysis 90-94

7. Chapter 7.- SWOT Analysis 95-97

8. Conclusion. 98-100

9. Suggestion and Recommendation. 101-103

10. Bibliography 104-105

11. Annexure - Questionnaires 106-113

.

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INTRODUCTION

OF INDUSTRY

WHAT IS BANKING?

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Banking in a traditional sense is the business of accepting deposits of money

from public for the purpose of lending and investments. These deposits can

have a distinct feature of being withdrawal by cheques, which no other financial

institution can offer.

In addition, banks also offer various other financial services, which includes: –

Issuing Demand Draft and Travelers Cheques

Credit Card

Collection of Cheques, Bills of Exchange

Safe Deposit Lockers

Issuing Letters of Credit and Letters of Guarantee

Sale and Purchases of Foreign Exchange

Custodial Services

Investment and Insurance services

The business of banking is highly regulated since banks deal with money

offered to them by the public and ensuring the safety of this public money is

one of the prime responsibilities of any bank. That is why banks are expected to

be prudent in their lending and investment activities. Every bank has

Compliance department, which is responsible to ensure that all the services

offered by the banks and the processes followed are in compliance with the

local regulation and the bank’s corporate policies:

Banking Regulation Act, 1949

Foreign Exchange Management Act, 1999

Indian Contract Act, 1872

Negotiable Instrument Act, 1881

Banks lend money either for productive purposes to individuals, firm corporate

etc. or for buying house property, cars and other durable and for investment

purposes to individuals and others.

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However banks do not finance any speculative activity. Lending is risk taking;

having prudent norms for lending should cover the risk. The depositors of banks

are also assured of their money by deploying some percentage of deposits in

statutory reserve like SLR and CRR.

BANKING INDUSTRY IN INDIA

Banking in India has its origin as early as the Vedic period. It is believed that

the transition from money lending to banking must have occurred even before

Manu. The great Hindu Jurist, who has devoted a section of his work to deposits

and advances and lay down rules relating to rate of interest. During the Mogul

period, the indigenous banker played a very important role in lending money

and financing foreign trade and commerce. During the days of the East India

Company it was the turn of the agency houses to carry on the banking business.

The General Bank of India was the first joint Stock Bank to be established in

the year 1786. The others, which followed, were the Bank of Hindustan and

Bengal Bank. The bank of Hindustan is reported to have continued till 1906

while the other two failed in the meantime. In the first half of the 19 th century of

East India Company establish three banks; The Bank of Bengal in 1809, the

Bank of Bombay in 1840 and the bank of madras in 1843. These three banks

also known as presidency Bank were independent units and functioned well.

These three banks were amalgamated on 27th January 1921. With the passing of

the State Bank of India Act in 1955 the Reserve Bank of India Act 1934. In the

wake of the Swadeshi Movement, a number of bank with Indian management

were establish in the country namely, Punjab National Bank Ltd., Bank of India

Ltd., the Central Bank of India Ltd., Indian Bank Ltd., the Bank of Baroda Ltd.,

and the Central Bank of India Ltd. On July 19, 1969 fourteen major banks of

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the Country were nationalized & in 15th April 1980 six more commercial private

sector banks were also taken over by the Government.

Today the commercial banking system in India may be distinguished into:

PUBLIC SECTOR BANKS :

State Bank of India & its associate bank called the State Bank Group, 20

nationalized banks, Regional Rural Banks mainly sponsored by public sector

banks Old generation private bank, New generation private bank, foreign banks

in India, Scheduled co-operative bank, non-scheduled banks.

CO-OPERATIVE SECTOR BANKS:

The co-operative sector has been developed in the country to the supplement the

Village moneylender. The co-operative banking sector in India is divided into

four components State Co-operative Banks, Central Co-operative Banks,

Primary Agriculture Credit Societies, Land Development Banks, Urban Co-

operative banks, Primary Agriculture Development Banks, Primary Land

Development Banks, and State Land Development Banks.

DEVELOPMENT BANKS:

Industrial Finance Corporation of India (IFCI)

Industrial Development Bank of India (IDBI)

Industrial Credit and Investment Corporation of India (ICICI)

Industrial Investment Bank of India (IIBI)

Small Industrial Development Bank of India (SIDBI)

National Bank for Agriculture and Rural Development (NABARD)

Export Import Bank of India (EXIM)

NATIONAL HOUSING BANK:

The Indian banking can be broadly categorized into Nationalized, Private Banks

& Specialized Banking Institution. The RBI Acts as a centralized body,

9

monitoring and discrepancies and short coming in the system. Since the

Nationalization of Banks in 1969, the public sector banks have accrued a place

of prominence and have since then seen tremendous progress. Conservative

banking practices allowed India Banks to be insulated partially form the Asia

currency crises, India banks are now quoting all higher valuation when

compared to Bank to other Asian countries that have major problems linked to

huge NPA’s and payment defaults. Co-operative banks are nimble footed in

approach and armed with efficient branch network focus primarily on the high

revenue niche retail segments. The India banking was finally worked up to the

competitive dynamic of the new India market and is addressing the relevant

issues to take on the multifarious challenges of globalization.

Private Banks has been fast on the uptake and is reorienting their strategies

using the interest as a medium. The Internet has emerged as the new and

challenging frontier of marketing. The large dose of liberalization have largely

brought this transformation and economic reforms that allowed banks to explore

new business opportunities rather generating revenues from conventional

streams i.e. borrowing and lending. The banking in India is highly fragmented

with banking unit contributing to almost 55 of deposits and 60% of advances.

Indian nationalized banks continue to be the major lender in the economy due to

their sheer size and penetrative networks which assures them high deposit

mobilization. The India banking can be broadly categorized into nationalized,

private banks and specialized banking institutions. The RBI acts as a centralized

body monitoring any discrepancies and shortcoming in the system. It is

foremost monitoring body in the Indian financial sector. The nationalized banks

continue that out of commercial banks operating in India, banks are in the

public sector and 5 are in the private sector.

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COMPANY PROFILE

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KOTAK MAHINDRA GROUP

KOTAK MAHINDRA GROUP is one of India's leading financial institutions,

offering complete financial solutions that encompass every sphere of life. From

commercial banking, to stock broking, to mutual funds, to life insurance, to

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

corporate.

The group has a net worth of around Rs.2900 Crores and employs over

8800employees in its various businesses. With a presence in 74 cities in India

and offices in New York, London, Dubai and Mauritius, it provides services to a

customer base of over 500000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the

world's largest investment banks and brokerage firms), Ford Credit (one of the

world's largest dedicated automobile financiers) and Old Mutual (a large

insurance, banking and asset management conglomerate).

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THE JOURNEY SO FAR...

HISTORY OF GROUP

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management

Finance Limited. Mr.Uday Kotak, Sidney A. A. Pinto and Kotak & Company

promoted this company. Industrialists Harish Mahindra and Anand Mahindra

took a stake in 1986, and that's when the company changed its name to Kotak

Mahindra Finance Limited.

Since then it's been a steady and confident journey to growth and success.

1985 The company was incorporated on 21st November 1985 under the name

Kotak Capital Management Finance Ltd. The Company has been

promoted by Mr. Uday S. Kotak, Mr. S.A.A Pinto and Kotak &

Company. The company obtained the certificate of commencement of

business on 11th February 1986 and the Existing promoters were joined

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by Mr Harish Mahindra and Mr. Anand Mahindra. The company's

name was changed on 8th April 1986 to its present name Kotak

Mahindra Finance Ltd.

- The Company deals in Bill discounting, leasing and hire purchase,

corporate finance, management of fixed deposit mobilization, financing

against securities, money market operations, consumer finance,

investment banking and clients' money management

1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting.

1987 Kotak Mahindra Finance Limited enters the Leases and Hire Purchase

market.

1990 3,08770 No. of equity shares subscribed for by the promoters, directors,

3,41,230 No. of equity shares allotted as rights as on 28.3.89. 19,50,000

shares issued as bonus (6,50,000 shares in prop. 1:1 as on 29.7.89 and

13,00,000 shares in prop. 1:1 as on 27.2.91). 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.

An application was made to SEBI for approval for setting up a Mutual

Fund trust and an asset management company. The newly set up

Corporate Advisory Services Group received several mandates for

advice on mergers and acquisitions and re-structuring.

The Company's newly established Foreign Exchange Risk Management

Service carters to the vast potential demand for price risk management.

The Company established itself as a major leasing and hire-purchase

company and as a source of finance for purchasers of automobiles.

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1992 Enters the Funds Syndication sector. In January, the Company offered

and allotted 15,50,000 - 14% secured partly convertible debentures of

Rs 90 each for a total value of Rs 13.95 crores in the following manner:

(i) 2,00,000 debentures to promoters, directors, etc. (ii) 77,500

debentures to employees (including working directors)/workers on

preferential basis (iii) 12,72,500 debentures to Indian public through

prospectus.

- Additional 30,000 debentures to promoters, directors, etc., 9,500

debentures to employees and 1,93000 debentures to Indian public were

allotted to retain oversubscription.

- As per the terms of debenture issue, a portion of Rs 45 of each

debenture of Rs 90 was to be converted into 1 equity share of Rs 10

each at a premium of Rs 35 per share as on the date of allotment of the

debentures. Accordingly 17,82500 No. of equity shares allotted as on

25th February, 1992, being the date of allotment of the debentures. The

non-convertible portion of Rs 45 of each debenture would be redeemed

at par in three equal installments of Rs 15, Rs 15 and Rs 15 at the end

of the 7th, 8th and 9th year respectively from the date of allotment of

the debentures.

- In April, the Company has raised Rs. 18 crores by issue of

Commercial Paper which has been awarded P1 + rating by Credit

Rating and Information Services of India limited (CRISIL) indicating

highest standards of safety.

1993 During February, the Company issued 69,82,500 Rights equity shares

of Rs 10 each at a premium of Rs 15 per share in proportion 1:1 (all

were taken-up). Additional 13,950 shares were allotted to those who

had applied for additional shares.

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- The Company issued through a Prospectus 4400000 No. of equity

shares of Rs 10 each for cash at a premium of Rs 140 per share of

which the following were reserved for allotment (i) 130000 shares to

promoters, directors, their relatives etc., (ii)25000 shares to

Foreign/Indian Financial Institutions (all were taken up). Of the

remaining 50,000 shares reserved for allotment on a preferential basis

to employees (only 34,600 shares taken up). Another 555000 shares to

NRIs were reserved on non-repatriation basis (all were taken up).

- Balance 3640000 shares, along with 15,400 shares not taken up by

employees', were offered for public subscription.

- At the 8th Annual General Meeting held on 28th September the

Company has reserved 6122000 No. of equity shares of Rs 10 each for

cash to be allotted at such issue price as may be decided by the board to

Foreign Institutional Investors and/or, Foreign and/or Indian Pension

and/or Mutual and/or other Funds and/or Institutions, Banks,

Companies, Bodies and/or individuals and/or Groups of Individuals.

- The Company's newly set up Corporate Advisory Services Group

received several mandates for advice on mergers and acquisitions and

re-structuring and some have already been executed with success.

1994 The Company entered into a Memorandum of Understanding with KB

Currency Advisors Inc. USA to market their Foreign Exchange Fund

Management programme.

- 183,65,500 Rights equity shares issued in prop. 1:1. 11,800 No. of

equity shares forfeited.

- The Company has received the approval of Securities and Exchange

Board of India (SEBI) for setting up a Mutual Fund.

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1995 Brokerage and Distribution businesses incorporated into a separate

company - Kotak Securities.

Investment Banking division incorporated into a separate company -

Kotak Mahindra Capital Company. The Company issued 400000 - 17%

Secured Redeemable Non-convertible Debenture of Rs 2500 each

including 96000 - 16% NCDs reserved for NRIs/URB (only 9510

taken-up). Unsubscribed portion of 90 debentures issued to the public.

These are redeemable at par on 7.3.2001 with an option for early

redemption up to a maximum of 5% of the issue amount every year.

The Company entered into a joint venture agreement with Ford Credit

International Inc. (FCI), a subsidiary of Ford Motor Credit Co., USA. It

was proposed to finance all non Ford Passenger cars.

Kotak Mahindra Capital company became a subsidiary of the Company

1996 The Auto Finance Business is hived off into a separate company -

Kotak Mahindra Primus Limited.

Kotak Mahindra takes a significant stake in Ford Credit Kotak

Mahindra Limited, for financing Ford vehicles.

The launch of Matrix Information Services Limited marks the Group’s

entry into information distribution. The Company's operations were

affected by the liquidity crunch, scarcity of resources, sluggishness in

the capital markets and the overall deceleration of economic growth.

The Company has entered into a MOU with the Chubb Corporation,

New Jersey, U.S.A., one of the largest American Insurance firms, to

develop a Joint Venture dedicated to the conduct of casuallity and

property insurance business in India.

The Company has invested a sum of about Rs 200 lakhs in Matrix

Information Services private Ltd. (Matrix), a company formed for

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providing comprehensive value added information to business and

general users. Matrix is a wholly owned subsidiary of the company.

The Company has divested its entire holding of 20,00,070 No. of equity

shares of Rs 10 each of Kotak Mahindra Securities Ltd. (KMSL) and

20,00,000 ordinary shares of US $ 1 each of Kotak Mahindra

International Ltd.

Hamko Financial Services Ltd., Kotak Mahindra Securities Ltd.,

provides of broking services to institutional and corporate clients,

Kotak, Mahindra Asset Management Company, Kotak Mahindra

International Ltd., an offshore company and Kotak Mahindra (UK)

Ltd., are all subsidiaries of the Company.

The Company's public issue of 400000 16-17% Secured Redeemable

Non-Convertible Debentures of Rs.2500 each for cash at par

aggregating Rs.100 crores in January.

1997 In recognition of the Company's prudent funds management, CRISIL

has assigned a rating of AA+ to the Company's public issue of Non-

Convertible Debentures and P1+ for all short term borrowings up to

Rs.35000 lakes.

Kotak Mahindra Finance Ltd. has decided to venture into health

insurance business.

Kotak Mahindra Finance has launched a new consumer finance product

called Kotak Mahindra K-Value.

Hamko is a 100 per cent subsidiary of KMFL and investment in it was

structured to avoid limitations of Section 372 under the Companies Act.

The company has diversified into various activities for which it has set

up subsidiaries including broking, capital market activities, auto

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finance, etc

1998 Enters the Mutual Fund market with the launch of Kotak Mahindra

Asset Management Company. Kotak Mahindra Asset Management

Company Limited (KMAMCL) launched its mutual fund schemes in

December.

The Company it would launch its mutual fund with two schemes --

KGilt Unit Scheme and K30 Unit Scheme.

Kotak Mahindra Finance is a joint venture with Goldman Sachs.

1999 The `FAA' (pronounced `F double A') rating assigned to the fixed

deposit programme of Ford Credit Kotak Mahindra (FCKM) has been

reaffirmed.

the allotment to the Company of 50,000 equity shares of Rs. 10 each by

Kotak Mahindra Trustee Company Limited (KMTCL) on 12th May

2000 Kotak Mahindra ties up with Old Mutual Plc. for the Life Insurance

business.

Kotak Securities launches kotakstreet.com - its on-line broking site.

Formal commencement of private equity activity through setting up of

Kotak Mahindra Venture Capital Fund. Kotak Mahindra Finance Ltd

(KMFL) and Chubb Corporation of the US have decided to call off

their joint venture for entering the general insurance business in India.

The Company has decided to set up a venture capital fund with an

initial corpus of Rs. 100 crore.

KMFL has set up a new asset reconstruction division to offer recovery

management services to players in the financial services industry.

The Company Issue of 91,82,500 No. of Equity Shares of Rs. 10/- each

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for cash at a premium of Rs. 90/- per share aggregating Rs.

91,82,50,000 to the Equity Shareholders of the Company on Rights

basis in the ratio of one equity share for every our equity shares held on

15th February.

Mr. K.K. Sheth has resigned effective from May 8.

Kotak Securities an affiliate of Kotak Mahindra Finance Ltd., has

launched electronic broking services for retail investors.

Kotak Mahindra Finance is in talks with foreign insurers for a joint

venture in the life insurance business.

The Company has proposed to start-up capital of Rs 150 crore in its life

insurance joint venture with Old Mutual, the UK based financial

services group.

The Company proposes to make the necessary applications to the RBI

and the Insurance Regulatory and Development Authority for entering

the life insurance business.

OM Kotak Mahindra Life Insurance Company, the recently formed

joint venture company of Kotak Mahindra Finance and Old Mutual Plc

has filed its application for approve of life insurance license on 1st

September.

Kotak Mahindra Finance Ltd has been assigned And AAA rating

(indicating highest credit quality) for its Rs.510 million medium term

borrowing programme.

Fitch India has assigned a rating of Ind AAA to the Rs 51-crore

medium term borrowing program of Kotak Mahindra Finance Ltd for

high credit quality and negligible risk factor. 2001

The Company recommended a swap ratio of 25 shares of KMFL for

every share of Pannier Trading which has a 75 per cent equity stake in

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Kotak Securities.

The Bharath Petroleum Corporation Ltd (BPCL) has decided to part

ways with Kotak Mahindra, one of the leading domestic financial

services company, in its convenient store venture In & Out.

2002 Matrix sold to Friday Corporation

Launches Insurance Services.

KMFL's business has seen a fast growth with the total disbursement of

commercial vehicle loan of the company in the last fiscal was tuned to

Rs. 250cr.

RBI has given in-principle approval to Kotak Mahindra Finance Ltd to

convert itself into a bank, thereby becoming the first ever non-banking

finance company converted into a bank.

Mr Uday Kotak says, there won't be any fresh capital infusion in the

bank in the near future.

KMFL informed BSE the FITCH ratings assigned: Fixed Deposit

Programme - Ind AAA Non-Convertible Debenture - Ind AAA

Mr.Ajay Sondhi has been appointed as the Additional Director of Kotak

Mahindra Finance Ltd.

Kotal Mahindra Finance Company has shortlisted i-flex solutions

'Flexicube' and 'Infosys', 'Finnacle' for its core banking solutions.

KMFL has raised 76.22cr by selling securitized commercial vehicle

loans to investors.

CRISIL has assigned ‘AAA (SO)' rating for Rs.83cr securitization

Programme of Kotak Mahindra Finance Ltd.

Mr.Uday Kotak has been appointed as the Executive Vice Chairman

and Managing Director of the company.

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Kotak Mahindra Finance Ltd has mobilized Rs.10489cr , asset-backed

securitization of commercial vehicle receivables.

Business Standard and Business Standard digital have ceased to be the

subsidiaries of Kotak Mahindra Finance Ltd.

Mr.C Jayaram and Mr. Dipak Gupta are appointed as whole time

Directors on the Board of Kotak Mahindra Finance Ltd.

2003 Finance limited converts to a commercial bank-the first Indian company

to do so. Madison Communications has won the Rs.30cr Kotak

Mahindra's media AOR account.

The proposal of changing the name from 'Kotak Mahindra Finance Ltd'

to 'Kotak Mahindra Bank Ltd' and the proposal to change the

Authorized capital from 100,00,00,000 divided into 10,00,00,000 equity

shares of Rs.10 each has been approved by the company shareholders.

RBI has granted license to Kotak Mahindra Finance Ltd to embark on

its banking business.

O & M has got the creative account of Kotak Mahindra Bank, and has

said to be working professionally.

Kotak Mahindra Bank has received a lot of interest from portfolio

investors, private equity investors and potential strategic investors.

Kotak Mahindra Bank has entered into an ATM sharing agreement with

UTI Bank, which would allow KMB's customer free access to around

800 ATM's.

Kotak Mahindra Bank has started its operations in New Delhi by

inaugurating a branch Cannaught place office.

Dr.Shankar Acharya has been appointed as the Additional Director to

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the board of the bank.

The Board of Kotak Mahindra Bank Ltd accepts the resignation of

Mr.S.A.A Pinto and Mr.M.R Punja as the Directors of the Bank.

Kotak Mahindra Investment Co Ltd. PCC a subsidiary of Kotak

Mahindra Capital Company has constituted itself from a private

company to a public limited co. and has changed its name to 'Global

Investment Opportunities Fund Ltd'.

Kotak Mahindra bank has unveiled several home finance products

options which includes Home loan, Home equity Loan, Home loan

transfer and Home improvement loans.

Kotak Mahindra Bank launches online remittance services called,

FUNDS to HOME for Non-resident Indians.

In response to the repo rate cut by the RBI, the Kotak Mahindra Bank

has reduced its lending rates in home loans.

Kotak Mahindra Bank Limited has informed that the equity shares of

the Bank have been delisted from the Delhi Stock Exchange

Association Ltd w.e.f December 10, 2003.

2004 Launches India growth fund, a private equity fund. Kotak Mahindra

Bank Limited has informed that the Bank's equity shares will be

delisted from The Stock Exchange, Ahmadabad with effect from

January 20, 2004.

Kotak Mahindra Bank sets up branch in Surat

Kotak Mahindra Mutual Fund has launched Kotak Opportunities, an

open-ended equity growth scheme

Kotak Mahindra Bank inks pact with Reuters

23

2005 Kotak group realigns joint venture in ford credit.

Buys Kotak Mahindra Prime (formerly known as KM Primus Limited)

and sells Ford Credit Kotak Mahindra

Launches a real estate fund. Kotak Mahindra Bank purchases stressed

assets worth Rs 1,000 cr

Kotak Bank join hands with IndianNGOs.com

Kotak Mahindra Bank invests Rs 25 cr in BFW

2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra

Capital and Kotak Securities. Kotak Mahindra joins hand HDFC Bank

to share ATMs.

Kotak Mahindra to buy out Goldman Sachs' stake in JVs

Kotak Mahindra Bank sets up branch in Valsad

Kotak Mahindra subsidiary acquires Ford Credit's auto portfolio

2007 Kotak Mahindra Bank Launches Home Banking, Improves Banking

Experience. Kotak Mahindra Bank Launches Home Banking, Improves

Banking Experience

Kotak Mahindra Bank Launches Salary 2 Wealth

Kotak Mahindra Bank Launches Kotak Gold Debit Card

Kotak Mahindra Bank Ties up with Taxshax.com, Simplifies Filing of

IT Returns

2008 Kotak Mahindra Asset Management Company Limited (KMAMCL)

launched its mutual fund schemes in December.

The Company it would launch its mutual fund with two schemes --

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KGilt Unit Scheme and K30 Unit Scheme.

Kotak Mahindra Finance is a joint venture with Goldman Sachs.

1999

The `FAA' (pronounced `F double A') rating assigned to the fixed

deposit programmes of Ford Credit Kotak Mahindra (FCKM) has been

reaffirmed.

With the allotment to the Company of 50,000 equity shares of Rs. 10

each by Kotak Mahindra Trustee Company Limited (KMTCL) on 12th

May.

- Kotak Mahindra Bank launched credit cards for its customers.

2009 Kotak entered into tie up with Russia's top investment bank

Kotak Mahindra Bank Wins IT Team of the Year for 3rd Consecutive

Time at the Banking Technology Awards 2008

CORPORATE IDENTITY

An idea in the highest sense of a word cannot be conveyed, but a symbol

can be:

The symbol of the Infinite Ka reflects our global Indian personality. The Ka is

uniquely while its curve forms the infinity sign, which is universal. One of the

25

basic tenets of economics is that man’s needs are unlimited. The Infinite Ka

symbolizes that we have an infinite number of ways to meet those needs.

26

VISION STATEMENT

The global Indian financial services brand: our customers will enjoy

the benefits of dealing with a global Indian brand that best understand

their needs and delivers customized pragmatic solutions across multiple

platforms. We will be a world-class Indian financial services group. Our

technology and best practices will be benchmarked along international

lines while our understanding of customers will be uniquely Indian. We

will be more than a repository of our customers’ savings. We, the group,

will be a single window to every financial service in costumer’s universe.

The most preferred employer in financial services: A culture of

empowerment and a spirit of enterprise attracts bright minds with an

entrepreneurial streak to join us and stay with us. Working with a home-

grown, professionally-managed company, which has partnerships with

international leader, gives our people a perspective that is universal as

well as unique.

The most trusted financial services company: We will create an ethos

of trust across all our constituents. Adhering to high standards of

compliance and cooperate governance will be an integral part of building

trust.

Value creation: Value creation rather than size alone will be our

business driver

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KEY GROUP BUSINESSES:

KEY GROUP COMPANIES AND THEIR BUSINESSES:

Kotak Securitie

sLtd

Key GroupBusinesses

KotakMahindra

Capital Ltd

Kotak OldMutual

LifeInsurance

Kotak MahindraAMC Ltd.

Kotak MahindraBank Ltd

Kotak MahindraPrime Ltd

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Kotak Mahindra Bank Ltd. is the Kotak Mahindra Group’s flagship company.

Kotak Mahindra Finance Ltd that was established in 1985, was converted into a

bank - Kotak Mahindra Bank Ltd in March 2003 thus becoming the first Indian

finance company to be converted into a Bank. It’s banking operations offers a

central platform for customer relationships across the group’s various

businesses. The bank has a presence in the Commercial Vehicles, Retail

Finance, Corporate Banking and Treasury and has recently entered the Housing

Finance segment Kotak Mahindra Capital Company Kotak Mahindra Capital

Company Limited (KMCC), India's premier Investment Bank and a Primary

Dealer (PD) approved by the RBI, is a strategic joint venture between Kotak

Mahindra Bank Limited and the Goldman Sachs Group, LLP. KMCC's core

business areas include Equity Issuances, Mergers & Acquisitions, Structured

Finance and Advisory Services, Fixed Income Securities and Principal

Business.

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank

Limited and the Goldman Sachs Group, LLP, is one of the India’s largest

brokerage and securities distribution house. Over the years, Kotak Securities has

been one of the leading investment broking houses catering to the needs of both

institutional and retails investor categories with presence all over the country

through franchisees and coordinators. Kotak Street - the retail arm of Kotak

Securities Ltd., offers online and offline services well-researched expertise and

financial products to the retail investors.

29

Kotak Mahindra Primus Limited (KMP) is a joint venture between Kotak

Mahindra Bank Ltd and Ford Credit International Inc., (USA) formed to finance

all Ford passenger vehicles. KMP is one of the country’s leading players in car

finance and is focused to financing and supporting automotive and automotive

related manufacturers, dealers and retail customers.

Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of

Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund

(KMMF). KMMF manages funds in excess of Rs. 4000 crores and offers

schemes catering to investors with varying risk- return profiles. It was the first

fund house in the country to launch a dedicated gilt scheme investing only in

government securities.

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture

between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance

helps customers to take important financial decisions at every stage in life by

offering them a wide range of innovative life insurance products, to make them

financially independent.

30

About Kotak Mahindra Bank

Kotak Mahindra Bank is the flagship company of the group. The company

was incorporated in 1985 and over the years has spread its business into the

entire spectrum of financial services, either directly or through subsidiaries

Creating banking history

Established in 1984, The Kotak Mahindra group has long been one of India's

most reputed financial organizations. 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 creates

banking history since Kotak Mahindra Finance Ltd. is the first Finance

company in India to be converted to a bank.

The complete bank

At Kotak Mahindra Bank, we address the entire spectrum of financial needs for

individuals and corporate. From Retail Finance to Equities, Mutual Funds to

Life Insurance and Investment Banking, we have the products, the experience,

the infrastructure and most importantly the commitment to deliver pragmatic,

end-to-end solutions that really work.

A license authorizing the bank to carry on banking business has been obtained

from the Reserve Bank of India in terms of Section 22 if the Banking

Regulation Act, 1949. It must be distinctly understood, however, that in issuing

the license, the Reserve Bank of India does not undertake any responsibility for

31

the financial soundness of the bank or the correctness of any of the statements

made or opinion expressed in this connection.

MAIN RETAIL BANKING SERVICES:

Deposits

Savings Account

Current Account

Term Deposits

Investment Services

Demat

Mutual Funds

Banc assurance

Convenience Banking

Net Banking

Phone Banking

Home Banking

ATM Network

Global Debit Card

Mobile Banking & Alerts

Loans

Personal Loans

Home Finance

32

INTRODUCTION TO

“Customer Relationship

Management in Indian Retail

Banking”

CUSTOMER RELATIONSHIP MANAGEMENT

33

Customer relationship management (CRM) is developing into a major

element of corporate strategy for many organizations. CRM, also known by

other terms such as relationship marketing and customer management, is

concerned with creation, development and enhancement of individualized

customer relationships with carefully targeted customers and customer groups

resulting in maximizing their customer life time value.

Industry leaders are now addressing how to transform their approach to

customer management. A new form of cross-functional marketing, i.e. CRM is

replacing narrow functionally based traditional marketing. The traditional

approach marketing has been continuously questioned in recent years. This

approach emphasized on the management of the key marketing mix elements

such as product, price, promotion, and place within the functional context of the

marketing department.

The new CRM approach, while recognizing these key elements still need to be

addressed, reflect the need to create an integrated cross functional which focus

on marketing – one which emphasizes keeping as well as winning customers.

Thus the focus is shifting from customer acquisition to customer retention and

ensuring the appropriate amount of time, money and managerial resources are

directed towards these tasks.

The adoption of CRM is being filled by a recognition that long-term

relationship with customers is one of the most important assets of the

organization and that information – enabled systems must be developed that

will give them “customer ownership”. Successful ownership will create

competitive advantage, which result in improved customer retention and

profitability for the company.

34

CRM an overview

Businesses today are continually looking for ways to achieve a competitive

advantage. Margins are shrinking, competition is increasing and industries are

consolidating. While customer expectation intensify for quality, service and

delivery, businesses are reducing staff and the same time searching for ways to

arm employees with information to make better decisions and innovate.

Customer is the most important asset in businesses. Consequently, applying

some management resources to improve the customer’s experience and

maximize the profit, potential of that asset is important. The concept of CRM as

a strategy reflects the business process and technology that can be combined to

optimize revenue, profitability and customer royalty.

The CRM market is evolving rapidly and is one of the fastest growing market

segments in application software .CRM has captured the mind share of senior

executives across a variety of industries. With a rapid growth of E-customer

applications and the increasing need to sell to and support customers through

Internet, CRM solutions must provide a focal point for all the customers- facing

activities across the channels.

What is Customer Relationship Management?

It is a comprehensive approach that provides seamless coordination

between sales, customer service, marketing and field support and other

35

customer touching functions. CRM integrates people, process and

technology to maximize relationship with all customers including e-

customers, distribution channels and suppliers.

It is customer focused business strategy designed to optimize revenue,

profitability and customer royalty. By implementing a CRM strategy, an

organization can improve the business processes and technology

solutions around selling and marketing and servicing functions across all

customer touch – (for example: web, e-mail, phone, fax, in- person).

A primary objective of CRM is to provide the entire organization with a

complete, 360 –degree view of the customer, no matter where the information

resides or where the customer touch point occurred. Today, many businesses

manage different customer relationships with multiple information systems,

which weaken customer service and ultimate reduce total sales potential. To

realize the benefits of CRM, it is important to have an integrated solution across

all customers information systems, tying together the front and front offices for

a complete view of the customers in order to serve them better.

36

Why is it necessary?

Many companies are turning to customer relationship management systems to

better understand customer wants and needs.

CRM applications often used in combination with data warehousing e-

commerce application and call-center, which allows companies to assess

information about customers buying history, preferences, complaints and other

data so they can better anticipate what customer will want. The goal is to instill

greater customer loyalty.

Other benefits include:

The ability to provide faster response to customer inquiries.

Increase efficiency through automation.

Having a deeper knowledge of customers.

Getting more marketing of cross selling opportunities.

Identifying the most profitable customers.

Receiving the customer feedback that leads to new and improved product

and services.

Doing One to One marketing.

WHY NOW?

What makes CRM appropriate for today’s environment? While there are many

number of environmental factors and business advancement that impact and

enable the real importance for CRM in today’s environment is competitive and

differentiation. CRM promises to be competitive and differentiation in today’s

environment.

Organization today is finding it difficult to compete on the basis of product.

Technology advancement has enabled the near immediate replication of product

37

features and functions. It is just a matter of weeks between a product launch and

saturation of the market. Just think about it, are there many products out there

that are truly unique?

Price, which has traditionally been another basis of competitive differentiation,

is no longer a means for many to compete. Complex channel networks have

caused parity pricing.

Promotion strategies have similarly lessened as a means of differentiation.

Clubs abound, special offer are the norm, and sales are continual.

Place of distribution has likewise become less influential in the success or

failure of a business. The Internet has created an avenue for even the smallest

business to compete.

While all these factors are still important, none of them can alone support the

success of most business. CRM –the ability to provide a more meaningful sales

and service experience promises to be means of differentiating, of providing

customers with a reason to frequent your business rather than that of your

competitors.

Ownership of customer relationship provides exponentially greater rewards than

differences in product, price, promotion or place of distribution could ever offer.

All of these factors can even be mitigated if you can serve as the one stop

provider that can identify. Quantify, and service customer’s need.

38

Implementing CRM

If CRM involves optimizing product, price, place of distribution, promotion,

sales and service, why are so many companies struggling? Hasn’t anyone really

mastered the art and science of CRM, and if not, why is it so difficult?

CRM is difficult because it is an enterprise-wide initiative.

CRM is not a technology initiative. Many have confused CRM as a

technology initiative, and assigned the CRM implementation project to

their I.S or I.T group. CRM conferences often equates to technology

exhibits and demonstration. Technology is needed in order to implement

CRM, particularly the customization part but technology is not the driver

of CRM, or the solution to successful CRM implementation

CRM is not exclusively a sales initiative. Similar to marketing, CRM is

often lodged within the sales department. The sales force, after all, is

extremely close to their customers, understanding their needs and wants,

and trying to fulfill them. Sales, however, is just one functional area that can

benefit from CRM, and that is necessary for effective CRM.

CRM is not exclusively a marketing initiative. Many organizations have

merely equated CRM with customer-focused marketing, or

data-driven/database marketing. CRM requires marketing expertise. But

CRM is not strictly a marketing initiative.

CRM is not exclusively a service initiative. As with sales and marketing,

customer service is one functional aspect of successful CRM

implementation. But customer service is not the sole driver of the

process.

CRM involves marketing, sales, service and technology, as well as the

other inner workings of an organization.

39

Thus it is properly described as an enterprise-wide initiative. It involves all the

areas of the organization and all the functions of the organization and it requires

all areas of the organization to be working together in harmony. CRM requires

all areas of the organization to not only exist in harmony, but to be working

toward the common goal of stronger relationships.

IMPORTANCE OF CRM

Value of CRM to business

A CRM strategy is designed to increase revenue and profitability by attracting

new customers, growing customer business, increasing customer satisfaction

and loyalty, enabling more efficient business processes and utilizing lower cost

technologies.

The primary goal of CRM is higher revenue, not cutting costs. A CRM solution

improves sales and marketing efforts and enables organizations to provide

superior service to customers. New customers are gained, and existing

customers are retained and buy more in greater quantity. And customer’s

benefits are receiving superior customer service and getting the products and

services they want, when they want them.

An enterprise that does not have CRM strategy or use CRM applications is at a

competitive disadvantage.

Before engaging on a mission to implement a CRM strategy, it is critical to

determine what the specific objectives are and how to measure the return on

investment.

There are sobering statistics that over one-half of CRM implementations ”fail”,

primarily due to lack of consensus on agreed –upon and more importantly,

measurable goals. While objectives can address specific points of poor

40

performance-for examples low sales performance or customer satisfaction

scores-it is important that they also address supporting the entire customer life

cycle.

CUSTOMER RELATIONSHIP MANAGEMENT IN BANKING

Banks Become Customer-Centric

The post-liberalized banking sector in India has been witnessing spectacular

changes. The major reasons for the recent radical changes in banking industry’s

portfolio are competition, consolidation, information technology and the need to

be customer-centric.

Banks could improve the profitability by adopting strategies like market

segmentation, innovation, price bundling and relationship. Technology has a

major role to play in retail banking, but its role is complementary to customer

service initiatives.

Due to increased financial market products like commercial paper and variety of

financial instruments, big corporate clientele of several commercial banks have

shifted their loyalty, and have been raising resources from the market directly

and commercial banks have become more retail customer-centric by offering

wide range of services. Banks have identified new customer segments like

students, workingwomen, and high rich net worthy individuals.

CUSTOMER RELATIONSHIP PROFITABILITY

Regulated era has given assured profits to banks, but in the post deregulation

period as margins are falling down substantially, banks are concentrating on

41

customer relationships. Banking services can be divided into three categories:

core services, facilitating services and supporting services. Core service is the

reason for being in the market. Facilitating services are needed so that the core

service can be used, and supporting services exactly discriminates the service

package from the services of competitors.

Customer relationship is the base on which the structure of retail banking will

evolve. The cost to develop customer relationship is always higher than the

revenue,

But when the relationship grows new demands will appear and then the

incremental revenue would be higher than incremental costs.

The cost associated with building up of the relationship is huge. They are

advertising costs, price incentives, set up costs for accounts and service costs

etc.

Customer service delivery is vital for the success of banking operations. This is

not possible only through technology. Process consistency within and across

service channels is paramount. Banks are increasingly making investment in a

single type of process, rather investing in asset of processes that depends on

human resource policies.

42

Who are HNI Customers?

They are High net worth individual customer.

They are the major targets for private bankers.

Bank provides premium class facilities to these clients and tries to cater

their special needs related to financial and non-financial in nature.

They are high profile customers.

They have income of above Rs.10 lakhs per annum.

The customer who can maintain at least a very high amount in their

accounts.

Bank tries to maintain long-term relationship with these clients.

HNI customers have a Relationship Manager

43

How to approach HNI Customers:

Approaching to prospective customer is very important for any organization. If

banks rightly approach customer then a long-term relation can be expected.

Followings are the steps how a bank approached to HNI customers.

DATA COLLECTION: Normally banks maintain their data bank, which is

collected from various sources like Credit Card holders, Different Account

Holder’s Primary data, Yellow pages, Directories.

TELE CALLING: Once the data is collected then the tele callers call upon to

these contacts and make the clients aware about various facilities provided by

the banks. If the clients show their inclination then a appointment is fixed with

these clients and the Relationship managers visit the clients.

ROLE OF RELATIONSHIP MANAGER: This appointment is called as a

LEAD. This lead is transferred to the relationship manager and the client is

approached personally. Relationship manager explain the facilities provided and

take note to the clients’ additional needs which can also be fulfilled by their

services. If the client is convinced the lead converts in the customer form.

CORPORATE BANKING: Relationship manager analyses the requirements

of the customers and provide the best-suited product. Relationship manager

explains the various investment options available in the market and give the

customer the opportunity to select the option, which is suitable to him.

PORTFOLIO MANAGEMENT: If the customer has invested then the role of

the manager is to design his portfolio keeping in mind the risk and return

factors. Portfolio manager provide these customer the requisite information

44

about the investment opportunities available in the market according to the

profile of the customer.

HANDLING QUERIES: Frequent services and time to time updating of the

market circumstances are shared with these customers. The relationship

manager with the help of other officers clarifies their doubts and queries are

handled with a special care.

Gems and Jewellery Industry. Builders (Real Estate)

V.K.I Industry Area.

Suspects

Prospects

First Time Customers

HNI CUSTOMERS

45

Mainly my work was to deal with HNI customers and to find out the interested

potential customers for opening the account in KMBL.I had convinced them to

build a new and healthy relationship by opening the account. Instead of

covering all the areas, I have decided to cover 2 important sectors:

Gem and Jewellery Industry

Builders Industry (Real Estate)

Local Businessmen

I have selected the first two sectors, as they are the booming sectors of market.

These two segments are my suspects. Suspects are those persons who might buy

the product and who will be ready to open the account in KMBL. Then I have

determined the most likely prospects from these suspects through telecalling

and explaining about the features of account. /prospects are those persons who

are interested in opening the account. By opening the account and building

relationship, they have become the first-time customers. These three steps can

be referred as customer development Process, how you are creating the

relationship with customers.

46

Current Account

47

CURRENT ACCOUNT

Basically a current account is opened for artificially created entity. This

artificially created entity can be a firm, sole proprietorship, association,

partnership or anything else. No interest is paid on the current account. The

bank charges some nominal amount for the transaction that takes place.

Tools for opening of the Current accounts

Walk in: - There was a huge number of walk in customers in KMBL, we use to

open their current accounts

References: - References were being collected from the leads which we were

having and from other sources like Chartered Accountants, Relatives, Friends

etc.

Cold Calls: - This refers to the telephonic call, which we use to make; we use

to take appointment before approaching the person.

Hot calls: - This refers to the direct face-to-face calls, which we use to make

without taking any prior appointments.

Databases: - The various databases provided by the KMBL itself, which

includes directories, yellow pages, club directories, etc.

Procedure of opening of the account is as follows

Preparing the proposal

Meeting to the financial advisor of that office and giving him the

proposal, telling him the benefits, which the firm will be getting after

opening its account in HSBC bank.

Seeking permission of opening of account.

Meeting to the owner of the firm/company

48

Filling up the forms and completing the necessary Documentation.

KMBL and Current Account

HSBC Bank has various current accounts to match different needs of the

businessman. All these account are designed to suit the various need of the

businessman.

Types of Current Account at KMBL

Kotak Edge Current Account

Kotak Pro Current Account

Kotak Ace Current Account

KMBL and Savings Account




49


Features

Attractive Returns

Business Advantages

Convenience Banking.

Everyone needs a well-equipped bank account to keep pace with the business

endeavors. Kotak Mahindra Bank offers the Kotak Edge Current Account,

armed with Kotak 2-Way Sweep and entire gamut of banking privileges,

providing the extra edge to get ahead. The feature rich Kotak Edge Current

Account is the ideal way to make money work harder.

ATTRACTIVE RETURNS:

Kotak Edge Current Account combines liquidity of a Current account with the

attractive returns of a Term Deposits through the unique Kotak 2-Way Sweep.

KOTAK ADVANTAGES

Experience the ‘edge’ of business gains while banking through a host of

advantages offered by Kotak Edge Current Account.

Free Demand Drafts

Avail Demand Drafts, free of cost, payable at any of the branch locations, just

by calling Phone Banking services. There is no limit to the number/value of

Demand Drafts drawn by the customer at these locations

50

Free Home Banking

For free cash/demand draft delivery, dial phone banking service and enjoy time

saving banking experience from the comfort of home or office. The customer

can also use the facility for free cash/cheque pickup.

Free At par Cheques

Kotak Mahindra Bank’s At-par cheques are treated as ‘local clearing’ cheques

across select locations in the country. The At-par cheque facility comes to the

customer free of charge. The customer can now save DD making charges while

enjoying the convenience of a cheque

Free Cheque Collections

Outstation cheques, drawn on any of the branch locations, would be collected

‘free of charge’ for the account holder. Only a nominal charge is levied for non-

branch location.

Free Electronic Fund Transfer

Transfer funds to third party accounts in other banks, without drawing a

Demand Draft or a cheque, by using Electronic Transfer facility. With this

facility, the accountholder can save on Demand Draft making/couriering

charges and also transfer funds faster.

Overdraft against Term Deposit

As a Kotak Edge Current accountholder, you can avail an overdraft against

Term Deposit held with KMBL. This facility helps effectively tackle short-term

cash flow problems and since the Term Deposits remains intact, the

accountholder continue to earn interest on the investment.

51

CONVENIENCE BANKING

A host of convenience banking facilities allows the accountholder to access

account anytime, anywhere.

Global Debit Card

Access the account free of cost at 1000+ Kotak Mahindra Bank and HDFC

Bank ATMs by using the VISA Global Debit Card. The accountholder can also

use Debit Card at all VISA affiliated merchant establishments and ATMs

worldwide.

Phone Banking

Dial 24 hour Toll Free number 1800 116022 (North India) OR (Rest of India)

from anywhere and customer Care Officer will help instantly with all banking

requirements.

Net Banking

Just log on to “www.kotak.com” to access Net banking facility. Take

advantage of the Internet to bank from home, office or anywhere in the world at

a time of convenience.

52

http://www.kotak.com/

At-Home Services

This service enables the accountholder to make Utility Bill payments like

electricity, telephone and mobile phone bills and also get document delivery and

pickup from the bank.

Mobile Banking

Use this service to access bank account anywhere, anytime. It is quick and easy,

available to the accountholder 24X7 and it’s absolutely free. The accountholder

don’t have to pay any charge to avail this service. The account holder can use

Mobile Banking to check account balance, last 3 transactions details, issued

cheque status and request a cheque book. The customer can use Alerts Service

to get Alerts by SMS and/or email whenever the balance falls below the

Average Quarterly Balance or a Standing Instruction set by the account holder

fails.

Eligibility Criteria

These current accounts are offered to Sole Proprietorships, Partnerships

and Private Limited Companies.

To be eligible

Edge Account customers need to maintain a minimum average quarterly

balance of Rs.25000. Non-maintenance of this balance invites a fee of Rs.750

per quarter.

Documentation Criteria

Account Opening Requirements:

Completed Account Opening Form

Passport size photograph of every signatory duly signed

53

PAN card

Address Proof document

Identity card

Additional documents required:

Partnerships: Partnership Deed

Limited Company: Memorandum and Articles, Board Resolution,

54


Features

Attractive Returns

Business Advantages

Pro Privileges


Everyone needs a well-equipped bank account to keep pace with the business

endeavors. Kotak Mahindra Bank offers the Kotak Pro Current Account, armed

with Kotak 2-Way Sweep and entire gamut of banking privileges and ‘user

friendly’ Convenience Banking facilities. The feature rich Kotak Pro Current


ATTRACTIVE RETURNS:

Kotak Pro Current Account combines liquidity of a Current account with the


BUSINESS ADVANTAGES

The host of features offered by Kotak Pro Current Account makes money to

work while offering Convenient Banking experience.

Free Demand Drafts



Demand Drafts drawn by the customer at these locations. What’s more, the

customer can avail free DDs upto a pre-specified limit, at non-branch locations

too.

55




branch location.

Free Home Banking




Free At par Cheques




enjoying the convenience of a cheque.






PRO PRIVILAGE

Kotak Pro Savings account comes with special privileges that provide an extra

fillip to banking experience.

56

Family Savings Account

Kotak Pro Savings package entitles a Family Savings Account. This account

comes with a host of benefits like Kotak 2-Way Sweep, At-par cheque facility

and other beneficial features. So now, even dear ones of the accountholder can

enjoy the banking.

Free Cheque Pick-up

The accountholder can avail the added benefit of a ‘free’ cheque pick up

service. This service enables to have cheques and documents picked up from the

doorstep on a daily basis, helping the accountholder to devote more time and

energy to business

Free At-Home Services



pick up from the bank.

57

CONVENIENCE BANKING



Global Debit Card




worldwide.

Phone Banking



requirements.

Net Banking

Just log on “www.kotak.com” to access “Net banking facility” . Take

advantage of the Internet to bank from home, office or anywhere in the world at

a time of convenience.

Mobile Banking








58


fails or the accountholder can even ask for account balance to be sent on a daily

basis or weekly basis.




To be eligible

Pro Account customers need to maintain a minimum average quarterly balance

of Rs.50000. Non-maintenance of this balance invites a fee of Rs.750 per

quarter.





PAN card


Identity card




List of Directors

59


Features

Attractive Returns

Business Advantages

Ace Privileges


ATTRACTIVE RETURNS:

Kotak Ace Current Account combines liquidity of a current account with the


KOTAK ADVANTAGES

Ace current Account comes with a host of advantages that are aimed at

providing superior banking experience.

Free Demand Drafts




customer can avail free DDs up to a pre-specified limit, at non-branch locations

too.

60




branch location.

Free Home Banking

For free cash/demand draft delivery, dial phone-banking service and enjoy time



Free At par Cheques










Overdraft against Term Deposit

As a Kotak Ace Current accountholder, you can avail an overdraft against Term

Deposit held with KMBL. This facility helps effectively tackle short-term cash

flow problems and since the Term Deposits remains intact, the accountholder

continue to earn interest on the investment.

61

ACE PRIVILAGES

Ace account has been designed with exclusive benefits that give an extra fillip

to banking.

Free Cheque Pick-up

The accountholder can avail the added benefit of a ‘free’ cheque pick up

service. This service enables to have cheques and documents picked up from the

doorstep on a daily basis, helping the accountholder to devote more time and

energy to business

Free Demat Account

As an Ace Current Account customer, the accountholder can open a Demat

Account with Kotak bank free of charge. Even the annual charges towards the

Demat account are waived off.


Ace account allows extending the Kotak banking experience with 3 family

savings accounts. The family savings account comes with a host of benefits like

Kotak 2-Way Sweep, At-par Cheque facility and other attractive features.

Free Trading Account

Kotak Ace savings account customer can avail a ‘free Trading account with

Kotak Securities, giving access to online trading through Kotaksecurities.com.

And with Payment Gateway facility, the accountholder can pay trading bills

online from bank account directly.

Free Investment Account

Avail a free investment account that provides a consolidated view of all the

investments. The Investment account statement gives a ‘single window view’ of

Mutual Fund portfolio, listing the NAV of each scheme invested into, current

62

consolidated value of portfolio, and realized/unrealized returns against each

investment made.

Personal Investment Advisor

To identify and analyze the specific investment requirements, KMBL provide a

dedicated Personal Investment Advisor. This person alerts the customer of

investment opportunities, sends regular updates and feedback on the

performance of the investments, helping for monitor, manage and grow wealth

in the ever fluid investment climate.

CONVENIENCE BANKING



Global Debit Card Free




worldwide.

63

Phone Banking



requirements.

Net Banking

Just log on www.kotak.com to access Net banking facility. Take advantage of

the Internet to bank from home, office or anywhere in the world at a time of

convenience.

At-Home Services




Mobile Banking










64





To be eligible

Ace Account customers need to maintain a minimum average quarterly balance

of Rs.250000. Non-maintenance of this balance invites a fee of Rs 750 per

quarter.





PAN card


Identity card




List of Directors

65

Savings Account

66

Kotak Edge Savings Account

Features

Attractive Returns

Kotak Advantages


Everyone needs a savings avenue that makes the most of their hard earned

money. Kotak Mahindra Bank offers the Kotak Edge savings Account, armed

with Kotak 2-Way Sweep and entire gamut of banking privileges. The feature

rich Kotak Edge savings Account is the ideal way to make money work harder.

ATTRACTIVE RETURNS:

Kotak Edge savings Account combines liquidity of a savings account with the


2-Way Sweep

2-Way Sweep ensures that the money never stops working by linking the

savings account to a term deposit.

Attractive Returns: Funds above a pre-set limit in the saving account

are automatically swept into a Term Deposit account in units of Rs

10,000 and invested for a period of 181 days, allowing the customer to

earn higher interest on the savings.

Maximum Liquidity: Should cash withdrawals and cheques issued

exceed the balance in the savings account, KMBL make sure that the

transactions are honored. KMBL do that by sweeping the Term Deposits

67

into the savings account in units of Rs 10000. And then too, it takes care

to transfer only the latest term deposits which ensure that the interest loss

is minimized. The remaining amount in the term deposit account

continues to earn higher interest at the original applicable rate. KMBL

levy no penalty for premature withdrawals from term deposits.

KOTAK ADVANTAGES

Experience the ‘edge’ while banking through a host of advantages offered by

Kotak Edge Savings Account.

Free Home Banking




Free At par Cheques








branch location.

68






CONVENIENCE BANKING



Global Debit Card




worldwide.

Phone Banking



requirements.

Net Banking



convenience.

69


At-Home Services




Mobile Banking








fails.

70

Kotak Pro Savings Account

Features

Attractive Returns

Kotak Advantages

Pro Privileges



money. Kotak Mahindra Bank offers the Kotak Pro savings Account, armed

with Kotak 2-Way Sweep and entire gamut of banking privileges and ‘user-

friendly’ Convenience Banking facilities. The feature rich Kotak Pro savings


ATTRACTIVE RETURNS:

Kotak Pro Savings Account combines liquidity of a savings account with the


KOTAK ADVANTAGES

The host of features offered by Kotak Pro Savings Account makes money to

work while offering Convenient Banking experience.

Free Home Banking




71

Free At par Cheques





Free Demand Drafts


by calling Phone Banking services. There is no limit on the number/ value of

DD’s drawn by the customers at these locations. What’s more, the customer can

avail free DDs up to a pre-specified limit, at non-branch locations too.




branch location.






PRO PRIVILAGE

Kotak Pro Savings account comes with special privileges that provide an extra

fillip to banking experience.


Kotak Pro Savings package entitles a Family Savings Account. This account

comes with a host of benefits like Kotak 2-Way Sweep, At-par cheque facility

and other beneficial features. So now, even dear ones of the accountholder can

enjoy the banking.

72





CONVENIENCE BANKING



Global Debit Card




worldwide.

Phone Banking



requirements.

Net Banking



convenience.

Mobile Banking



73







fails.

Kotak Ace Savings Account

Features

Attractive Returns

Kotak Advantages

Ace Privileges



money. Kotak Mahindra Bank offers the Kotak Ace savings Account, armed

with Kotak 2-Way Sweep and entire gamut of banking privileges and ‘user-

friendly’ Convenience Banking facilities. The feature rich Kotak Ace savings

Account is the ideal way to make money work harder

ATTRACTIVE RETURNS:

Kotak Ace savings Account combines liquidity of a savings account with the


KOTAK ADVANTAGES

Ace savings Account comes with a host of advantages that are aimed at

providing superior banking experience.

74

Free Home Banking




Free At par Cheques





Free Demand Drafts




customer can avail free DDs up to a pre-specified limit, at non-branch locations

too.




branch location.






75





ACE PRIVILAGES

Ace account has been designed with exclusive benefits that give an extra fillip

to banking.

Free Demat Account

As an Ace Savings Account customer, the accountholder can open a Demat

Account with Kotak bank free of charge. Even the annual charges towards the

Demat account are waived off.


Ace account allows extending the Kotak banking experience with 3 family

savings accounts. The family savings account comes with a host of benefits like

Kotak 2-Way Sweep, At-par Cheque facility and other attractive features.

76

Free Trading Account

Kotak Ace savings account customer can avail a ‘free Trading account with

Kotak Securities, giving access to online trading through Kotaksecurities.com.

And with Payment Gateway facility, the accountholder can pay trading bills

online from bank account directly.

Free Investment Account

Avail a free investment account that provides a consolidated view of all the

investments. The Investment account statement gives a ‘single window view’ of

Mutual Fund portfolio, listing the NAV of each scheme invested into, current

consolidated value of portfolio, and realized/unrealized returns against each

investment made.

Personal Investment Advisor

To identify and analyze the specific investment requirements, KMBL provide a

dedicated Personal Investment Advisor. This person alerts the customer of

investment opportunities, sends regular updates and feedback on the

performance of the investments, helping for monitor, manage and grow wealth

in the ever fluid investment climate.

CONVENIENCE BANKING



Global Debit Card Free




worldwide.

77

Phone Banking



requirements.

Net Banking



convenience.

Mobile Banking










78


FEATURES EDGE A/C PRO A/C ACE A/C

AQB 10000 20000 75000

Investment a/c Free Free Free

Add. Savings a/c Nil 1 a/c 3a/c

2-Way Sweep Above 20k Above40K Above150k

Home Banking Free Free Free

DD Charged Free up to Rs 5 lacs

p.a

Free up to Rs 30 lacs

p.a

Cheque Collections Free Free Free

Statements Quarterly Quarterly Monthly

Convenience

Banking

Free Free Free

At par Cheque Book Free Free Free

ATM cum Debit card Free for 1st yr Free for 1st yr. Free for life

Daily cash Limit 25K 25K 75K

Daily POS Limit 25K 25K 50K

Own/HDFC ATM’s Free Free Free

Visa Domestic ATM Charged Free Free

Visa International

ATM

Charged Charged Free

Different Savings Account

Different Current Accounts

FEATURES EDGE A/C PRO A/C ACE A/C

79

AQB 10000 20000 75000

Investment a/c Free Free Free

Add. Savings a/c Nil 1 a/c 3a/c

2-Way Sweep Above 20k Above40K Above150k

Home Banking Free Free Free

DD Charged Free up to Rs5

lacs p.a

Free up to Rs30

lacs p.a

Cheque Collections Free Free Free

Statements Quarterly Quarterly Monthly

Convenience

Banking

Free Free Free

At par Cheque

Book

Free Free Free

ATM cum Debit

card

Free for 1st yr Free for 1st yr. Free for life

Daily cash Limit 25K 25K 75K

Daily POS Limit 25K 25K 50K

Own/HDFC ATM’s Free Free Free

Visa Domestic

ATM

Charged Free Free

Visa International

ATM

Charged Charged Free

Procedure Adopted for Opening the Account

Call up the prospective customer

80

Negative

81

Visit to the prospective customer

Collect the necessary documents

Sales department check the documentsCollection of further required documents

Customer Interested

Customer Convinced And Applies

Documents Sent

to Sales. Dept.

Deviations

Deviations sent to the sales .Dept.

Verification of Documents by BankFile Rejected

RESEARCH

METHODOLOGY

82

Title of the Study:

“CUSTOMER RELATION SHIP MANAGEMENT IN INDIAN RETAIL BANKING”

Objective:

To understand the Indian Banking System.

To understand the retail trends followed by the modern retail Banks. To

understand the banking relationship of organizations with their existing

banker.

Product Innovation for them.

To generate the business by generating leads.

Type of research:

Research design Descriptive

Sample size : 100 customers

Method of selecting sample :

Questionnaire:

The data was collected through questionnaire, in which different question were asked

Scope of study:

My study will help to understanding the Indian banking system as well as to identify the existing bank “Market reputation”

My study will provide information about general practices adopted by the various bank in order to carry their customers in the area of retail banking business.

.

83

Limitations of the study:

Due to time constraint, the research was confined to Udaipur only

Sample size is very small.

Some of the respondents shows biasness and gave wrong information.

Some of the respondents do not cooperate and are not interested in

answering.

84

Analysis and Data Interpretation

85

1. ACCOUNTS IN THE BANK AND THE NATURE OF THE ACCOUNTS.

SBBJ 30 2

PNB 15 1

CENTRAL BANK 4

STATE BANK OF INDIA 12

BANK OF INDIA 4

IDBI 10

BANK OF RAJASTHAN 10

BANK OF BARODA 5

ICICI 10

HDFC 6 1

CENTURION BANK 1 1

SYNDICATE BANK 4

CITIBANK 3

UCO 4

UTI 3

OBC 4

UNION BANK OF INDIA 3

86

Interpretation: As it can be predicted from the graph, 30 organizations have

their savings account with SBBJ bank. Most of the consumers have their

savings account in nationalized bank as they found nationalized banks very safe

and trustworthy. The other major players are Punjab National Bank and Bank of

Rajasthan. 2. REASONS BEHIND THE RELATIONSHIP WITH BANKS.

Interpretation: Most of the consumers have relationship with their

existing bankers because they have very long term and past relationship with

their banks and they are quite satisfied with their services. Another reason for

relationship is safety. Out of 100, 60 favored past relationship and 24 favored

safety as their reason. 3. FACILITIES PROVIDED BY BANKS AND USED

BY THE CONSUMER Interpretation: Each is using Branch facility. The

other facility used by them is Phone Banking as they consider it safe.4.

AWARENESS FORM SERVISESES PROVIDED BY BANKS.

Interpretation: Only 18 consumers out of 100 are aware about Auto swep FD

facility and 8 are availing it. 31 are aware about At-par cheque book facility and

17 are availing it as bank takes charges for this facility. 30 is availing Credit

card and 11 is from investment advisory services.

24

609

7

0

10

20

30

40

50

60

70

80

Safety Past relationshipwith banks

Proximity to office others

87

5. FCRA ACCOUNTS IN BANKSInterpretation: Consumers who receive

foreign funds from outside the country have to register themselves under

Foreign Contribution Regulation Act, 1986 (FCRA). The main purpose of this

act is to curb the use of foreign funds. For instance NGOs have to open a

FCRA account in any bank to deposit that received foreign funds so that

government can know about the use of foreign funds.14 consumers have FCRA

account in SBBJ bank reason being safety and past relationship else the rest

don’t have major hold on FCRA account. 6. SOURCES OF FUND AND

THEIR FREQUENCY Sources of Funds

Frequency

27

18

0

5

10

15

20

25

30

INDIA ABROAD

Response in nos.

88

Form of ReceiptsInterpretation: Though

most of the organizations have registered themselves under FCRA

account but majority of funds come from India only. Most of

FCRA Registered organizations in udaipur get funds from India

only. But some of organizations receive huge money from abroad

like Consumer Unit Trust of India, Rajasthan Cancer Society. The

average frequency of funds received by these organizations in

Udaipur is below 10 lacks and only 5 of such organizations get

above Rs71 Lakhs. Cheque is the major form in which these

organizations received their fund either from India or Abroad. Demand

Draft is another form in which they receive funds.7. MAJOR AREA OF

INCOMING FUNDInterpretation: 80 out of 100 organizations

receive the funds from all over India and 38 received from Abroad.

A very few of them received only from Rajasthan or within city.

89

8.MAJOR PAYMENT AND THE FORM IN WHICH THEY ARE

MADE

PAYMENT MODE

3133

2

29

8

22

2

28

1

17

0

5

10

15

20

25

30

35

CASH

CHEQUE

DRAFT

Interpretation: As it can be predicted from above chart, cash is the major

mode of payment made by these firms whether it is Administrative, salary or

project relatedDraft is also a mode of payment used by these firm but is not

used so much as used only when to buy some machines or to make payment

through draft onlyThe other form is cheque and the payment by cheque are

mostly done for project related expenses or salary. Administrative expenses are

not carried by cheque COMPARATIVE

ANALYSIS OF ACCOUNTS WITH

COMPETATIVE BANKS COMPARATIVE ANALYSIS

Today is the world of competition. In this competitive scenario, each and every

company has to keep an eye on its competitor. To help this out, I have done

comparative analysis of different banks and their services keeping in mind of

90

Kotak Mahindra Bank Limited. I have done comparative analysis so that I can

be able to know about the competitor’s services. This will help me out to handle

the customer queries and make them understand how Kotak Bank is different

and better than other banks. This analysis will help to convince the customer

easily for creating and building a new and fair, healthy relationship with Kotak

Bank.Procedure adopted for comparative analysis: Study and

understood the services provided by Kotak Mahindra Bank Limited in its

current account and savings account

Visited various banks and gather information about their services

through:

Personal Interview

Internet

Broachers and Pamphlets

Questionnaire.

Now along with Kotak Mahindra Bank, I had visited various other banks also to

know the difference in the financial products being offered by them in the

market and by doing that I came on the following comparison.

COMPARATIVE ANALYSIS OF SAVINGS ACCOUNTS

FEATURES

/ BANK

ICICI HDFC UTI IDBI HSBC KOTAK

MIN AQB 5,000 5,000 5,000 50,000 25,000 20,000

2 WAY SWEEP YES NO NO YES YES YES

91

HOME

BANKING

NO NO NO YES CHARGED YES

DEMAND

DRAFT

CHARGED CHARGED FREE YES FREE FREE

ECS YES YES YES YES YES YES

DEBIT CARD ICICI HDFC UTI IDBI HSBC VISA

DOMESTIC

PHONE

BANKING

YES YES YES YES YES YES

NET BANKING YES YES YES YES YES YES

MOBILE

BANKING

YES YES YES YES YES YES

TRADING A/C CHARGED CHARGED CHARGED NO CHARGED FREE

DEMAT A/C CHARGED CHARGED CHARGED YES CHARGED FREE

COMPARITIVE ANALYSIS OF CURRENT ACCOUNTS

FEATURES

/ BANK

ICICI HDFC UTI IDBI HSBC KOTAK

MIN AQB 100000 100000 AMB-

100000

10000

0

100000 250000

2 WAY SWEEP NO YES NO YES YES YES

92

HOME

BANKING

LIMITED NO NO YES FREE FREE

DEMAND

DRAFT

LIMITED FREE

UPTO A

LIMIT

UPTO Rs.

20 LAKH

(P.M)

Rs.30

Lakh

UPTO A

LIMIT

UNLIMITED

FOR BRANCH

LOCATION .FR

EE FOR NON-

BRANCH

LOCATION

UPTO Rs.30

LAKHS.

DEBIT CARD ICICI HDFC UTI IDBI HSBC ALL VISA

DOMESTIC

AND

INTERNATION

AL ATM’s

PHONE

BANKING

FREE FREE FREE YES FREE FREE

NET BANKING FREE FREE FREE YES FREE FREE

MOBILE

BANKING

FREE FREE FREE YES FREE FREE

TRADING A/C NO NO NO NO NO FREE

DEMAT A/C FREE FREE YES YES NO FREE

93

AT PAR

CHEQUE BOOK

FREE FIRST

FREE

THEN

CHARGED

UPTO

Rs.75

LAKH

(P.M)

UPTO

Rs.5C

r. P.M

free

FREE UNLIMITED

FREE

94

SWOT

ANALYSIS

95

SWOT ANALYSIS OF KMBL:

Strengths:

Very fast growing bank of Rajasthan as well as of India.

Track record of high growth and profitability.

Strong financial background.

One of the biggest financial institutions before converting into bank.

Long experience of banking that is why it is called 25 years old new

bank.

Latest technology used by the bank.

Free Home Banking transaction facility.

Very good database maintained by the bank, i.e., Banking Customer

Information Database.

Weaknesses:

Low brand image.

High average quarterly balance to be maintained by the costumer.

Lack of coordination between different departments.

Lack of costumer awareness regarding services and bank because of low

advertising.

Opportunities:

Opportunities of entering into major cities of Rajasthan.

Scope of more ATM networks.

96

Opportunities to increase its customer base in liabilities section by

marketing their products on local television channels, canopy, hoardings.

Threats:

Threats from nationalized banks.

Threats from private bank like ICICI, UTI, HDFC because these banks

open both savings and current account at a very nominal amount with

somewhat similar services

97

CONCLUSION

98

CONCLUSION Limitations of Retail BankingThe bank into retailing will have to face following bottlenecks in its operations

Huge sales and promotion expenditure Managing human resources Managing technology Pressure on margins Continuous follow-up Attitude hurdles Security problems

Huge Sales and Promotion Expenditure

In order to survive in the world of fierce competition with so many players, each bank has to incur huge amount of funds on sales and promotion. No bank can deny this expenditure because they need to build their image among the customers, to get business.

Managing Human Resources

Retail banking caters to the need of individual customers. For this purpose qualified and trained staff is needed to be maintained. For training those employees, banks spend a huge amount of money. Sometimes these trained personnel leave the job halfway which increases the expenditure of the bank. Apart from this banks also have to maintain various cells regarding customer grievance, employee grievance, etc. which again increases the expenditure of the bank.

Managing TechnologyTechnology plays an important role in retail banking. Today majority of transactions in banks are done through ATMs, Mobile banking, Phone banking, Internet banking. For this purpose it is necessary effective and efficient management of technology. Maintaining technology incurs huge expenditure, which sometimes create problem for the banks to accumulate funds for these purposes.

99

Pressures on MarginTo retain the existing customer base as well as to expand, the banks are pressurized to keep the minimum prices possible. Thus the banks have huge pressures on their margins.Continuous Follow-upIn order to earn more profit banks are going for mass banking. But in this race the maintenance of the customer base becomes very difficult. The problems like NPA’s and delay in payment of usage changes occur which leads to losses for the banks. Thus the banks have to maintain continuous follow-up programs, which require efficient technology, human resources as well as surplus funds to control expenditure on such programs.

Attitude HurdlesEarlier the major players in the banking industry were public sector banks. But due to the advent of liberalization and globalization, private and foreign sectors banks have come up which has resulted into a drastic change in the Indian Banking scenario. With these banks the latest technology has also come up. But still a huge chunk of people does not avail itself with the benefits. People still prefer going to banks and carry out the regular paper work when then same thing can be done very easily through their mobile phones and internet. Thus people from rural areas should be given proper information and should be educated and their attitude needs to be changed, since it is a major hurdle for the growth of the retail banking products.

Security ProblemsRetail banking products like net banking, phone and mobile banking and ATMs are solely dependent on technology. If there is any problem in the network or a system as a whole, it would result into huge losses for the banks as well as their customers. Therefore proper security measures should be in place to secure customers’ date and identification codes.

“This study has helped me to know the whole functioning of one of the major pillars of our economy which is Banks. With the Advent of Globalization and Liberalization new ways to improve customer relationship have emerged in front of the banks. These new ideas will help them in acquiring new customers and maintaining the existing customer base. One of the new fast emerging tools with banks to improve up on customer retention and satisfaction is Retail Banking and by adopting this many banks have achieved growth in their business like never before”

100

Suggestions

&

Recommandations

101

SUGGESTIONS & RECOMMENDATIONS

Kotak Mahindra Bank should chalk out some programs to create general

awareness regarding its presence and various services of the bank. More

attention is required in distant located firms and caters the needs of those

commercial areas.

Personal Marketing / Aggressive Marketing: Today is the era of

competition. In order to increase the banking network (in terms of clients

and business volume) an aggressive approach is required. The bank

should recruit more number of marketing personnel, so that they can

cover the whole of the city. Personal marketing can be one of the methods

or modes of taking people into confidence.

Promotional campaign: - In the era of such stringent competitiveness

one has to take care of promotional activities.

It can be done in following ways:

Promotion Through Customers :

Through motivating the existing customers to get more business

can be one of the modes to have greater access or

approachability. The motivation to the customers can be

through gifts or through any memento.

Reference Selling :

Few of the Bank’s existing customers specially esteemed ones

can be asked to give references about relatives/ friends or any

acquaintance that they consider potential customer. Thus the

business volume can be increased.

102

Advertising: - Initially when we took our work we found that

general awareness amongst people regarding KMBL Bank was

very low. The bank should instead of being centrally advertised, try

to advertise locally. This can be done in following ways: -

Public welfare banners: - An excellent way to advertise which can

be done through tree guards having KMBL Bank’s name.

Traffic posts especially at commercial locations can have boards of

Bank.

One or two Neon boards can be put at the center places of Udaipur.

Ad Campaign through FM, Radio, Hoardings, and Television

The bank should come up with more branches in other major cities of

Rajasthan

The bank should open more ATM networks.

There should be Education training programmes for Sales

Executives by KMBL.

Processing time of opening an account should be reduced.

Introduction of HR practices

103

Bibliography

104

Bibliography KOTHARI C.R., “RESEARCH

METHODOLOGY”,

Second Edition, Vishwa Prakashan, New Delhi, 1990.

1. KOTLER PHILIIP, “MARKETING MANAGEMENT”

PRANTICE- HALL OF INDIA, NEW DELHI, 1991.

2. Literature provided by the company.

3. http://www.kotak.com

4. http://www.google.co.in

105

ANNEXURE

106

Questionnaire

Name: _______________________________________

Nature of Occupation

(a) Salaried [ ]

Government Semi-govt. Private

(b) Self-Employed [ ]

Lawyer Doctor Engineer

Architect Builder Consultant

Exporter Importer Jeweler

Others, Please specify_____________

Q1. In which bank you are operating your savings account?

____________________________________

Q2. In which bank you are operating your current account?

________________________________________

Q3. How much minimum balance or average quarterly balance you have to

maintain in your account?

Savings Account _________________

Current Account _________________

107

Q4.Why has you chosen this bank?

Past Relationship Brand name

Near to home/office Others, Please specify_______

Q5. Are you satisfied with the services provided by your bank?

Yes No

(i) If yes, then

What core benefits you are availing from your bank?

Home Banking (Free/ charged)

Net Banking (Free/ charged)

108

Phone Banking (Free/ charged)

At-par cheque Book (Free/ charged)

Global Debit Card (Free/ charged)

Demand Draft (Free/ charged)

Auto Sweep FD (Free/ charged)

24 hrs ATM (Free/ charged)

Investment a/c (Free/ charged)

Additional savings a/c (Free/ charged)

Others, please specify ______________________________

(ii) If No, then why?

___________________________________________________

Q6. What exactly you are looking for in your bank? Please write your

expectations.

_____________________________________________________________

_____________________________________________________________

___

Address: ______________________ Phone No: ___________

______________________

______________________

______________________

109

Questionnaire

1) Name of the Organization:

2) Address:

________________________________________________________

_______________________________________________________________

_______________________________________________________________

3) Telephone Number

4) Name of Contact person:

5) About Organization:

______________________________________________

_______________________________________________________________

6) In which bank do you have an account and what is the nature of the

account?

_____________________________________________________________

7) What are the reasons you have relationship with these banks?

Safety ٱ

Past relationship ٱ

Proximity ٱ

others ٱ

8) Which of the following facilities does your bank provide you and which

one does

You use?

110

Facility Provides Use Frequency

Branch Banking

Internet Banking

Phone Banking

Home Banking

ATM

9) Are you aware of the following services provided by banks?

10) Do you have an FCRA account & where?

___________________________________________________________

11) What are the various sources of funds, their frequency and form of

receipts?

Source Response in numbers

INDIA

ABROAD

Form of receipt Response in numbers

Facility Aware Availed

Auto sweep into FD

At par cheques

Credit Cards

Investment Advisory

111

Demand Draft

Cash

Cheque

Other

12) Could you specify the areas from which the majority of your funds come?

Within City ٱ

Within Rajasthan ٱ

All Over India ٱ

abroad ٱ

13) What are the major payments you make and in what form they are made?

Amount Response in

numbers

Below 10 Lacks

11–30 Lacks

31–50 Lacks

51–70 Lacks

71 Lacks and above

112

Customer Relationship Management In Indian Retail Banking

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