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
CHOPRA
MBA 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 AUDICHYA

Date: 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
INDEX
S.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
5
INTRODUCTION
OF INDUSTRY
WHAT IS BANKING?
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
6
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.
7
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 19th 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 the
8
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.
10
COMPANY PROFILE
11
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).
12
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.
13
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
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.
14
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.
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
15
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.
- 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
16
equity shares forfeited.
- The Company has received the approval of Securities and Exchange

Board of India (SEBI) for setting up a Mutual Fund.
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.
17
The Company has invested a sum of about Rs 200 lakhs in Matrix
Information Services private Ltd. (Matrix), a company formed for
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
18
up subsidiaries including broking, capital market activities, auto
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.
19
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
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
20
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
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.
21
Mr.Uday Kotak has been appointed as the Executive Vice Chairman
and Managing Director of the company.
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
22
inaugurating a branch Cannaught place office.
Dr.Shankar Acharya has been appointed as the Additional Director to

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
23
Kotak Mahindra Bank inks pact with Reuters
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 --
24
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:
25
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
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
27
KEY GROUP BUSINESSES:
Kotak
Mahindra Kotak
Capital Ltd Mahindra
Prime Ltd
Kotak
Securitie
s Key Group Kotak
Mahindra
Ltd Businesses Bank Ltd
Kotak Old
Kotak
Mutual
Mahindra
Life
AMC Ltd.
Insurance
28
KEY GROUP COMPANIES AND THEIR BUSINESSES:
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.
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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.
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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 the financial
31
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
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• Home Finance
INTRODUCTION TO
“Customer Relationship
Management in Indian Retail
Banking”
33
CUSTOMER RELATIONSHIP MANAGEMENT
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
34
ownership”. Successful ownership will create competitive advantage, which
result in improved customer retention and profitability for the company.
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?
35
 It is a comprehensive approach that provides seamless coordination
between sales, customer service, marketing and field support and other
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.
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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.
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Organization today is finding it difficult to compete on the basis of product.
Technology advancement has enabled the near immediate replication of product
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.
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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.
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 CRM involves marketing, sales, service and technology, as well as the
other inner workings of an organization.
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.
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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
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.
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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
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.
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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.
HNI CUSTOMERS
V.K.I Industry Area.

Gems and Jewellery Industry. Builders (Real Estate)
Suspects
Prospects
First Time Customers
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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.
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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
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 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

 Kotak Edge Current Account
 Kotak Pro Current Account
 Kotak Ace Current Account
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Kotak Edge Current Account
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
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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.
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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
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
 PAN card
53
 Address Proof document
 Identity card
Additional documents required:

Partnerships: Partnership Deed
Limited Company: Memorandum and Articles, Board Resolution,
54
Kotak Pro Current Account
Features
• 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
Quarterly Balance or a Standing Instruction set by the account holder fails or the
58
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
Kotak Ace Current Account
Features
• 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.
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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.
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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.
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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
weekly basis.
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
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Kotak Edge Savings Account
Features
• 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.
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CONVENIENCE BANKING
Global Debit Card

worldwide.
Phone Banking
requirements.
Net Banking
convenience.
69
At-Home Services
Mobile Banking
70
Kotak Pro Savings Account
Features
• 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
Free At par Cheques
71
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
Kotak Ace Savings Account
Features
• 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.
Free Home Banking
74
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
weekly basis.
78
Different Savings Account
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 Free up to Rs 30 lacs
p.a p.a
Cheque Collections Free Free Free
Statements Quarterly Quarterly Monthly
Convenience Free Free Free
Banking
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 Charged Charged Free

ATM
Different Current Accounts
79
Procedure Adopted for Opening the Account
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 Rs5 Free up to Rs30 lacs
lacs p.a p.a
Cheque Collections Free Free Free
Statements Quarterly Quarterly Monthly
Convenience Free Free Free
Banking
At par Cheque Free Free Free
Book
ATM cum Debit Free for 1st yr Free for 1st yr. Free for life
card
Daily cash Limit 25K 25K 75K
Daily POS Limit 25K 25K 50K
Own/HDFC ATM’s Free Free Free
Visa Domestic Charged Free Free
ATM
Visa International Charged Charged Free

ATM
Call up the prospective customer

80
Customer
Interested
Visit to the prospective customer
Customer Convinced
And Applies
Collect the necessary documents Deviations sent to the sales .Dept.
Documents Sent
to Sales. Dept.
Deviations Collection of further

Sales department check the documents required documents
Verification of Documents by Bank Negative File Rejected
81
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
45
SAVINGS ACCOUNT
40
35
30
25
20 30
15
10
5 15 10 10
4 12 10 5 6 4 4 3
0 4 1 3 4 3
O
FC
K
B
B
BI
C
AN
K I
N SB
BO
D
PN
BI
ID
I
IC
BJ
IEB
U
TI
AITT
IC
SB
BA
U
I
BO
NICC
BC
R
AL
IOD
BO
RYN
O
TR
TUS
EN
EN
C
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.
87
2. REASONS BEHIND THE RELATIONSHIP WITH BANKS.
80
70
60
50
40
30 60
9
20 7
10 24
0
Safety Past relationship Proximity to office others
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.
88
3. FACILITIES PROVIDED BY BANKS AND USED BY THE
CONSUMER
100 85 85
90
80
70
60 45 Bank Provides
50 40 41 39
35 36 25 Facility used
40
30 22
20
10
0
g
in
nk
ch
g
ng
s
in
Ba
M
an
ki
nk
AT
an
Br
ba
on
B
Ph
ep
et
rn
str
te
oo
In
D
e/
om
H
Interpretation:
Each is using Branch facility. The other facility used by them is Phone Banking
as they consider it safe.
89
4. AWARENESS FORM SERVISESES PROVIDED BY BANKS.
100
87
90
80
70
60
Aware
50
Availed
40 31
30 20
18 17
20
8
10 0 0
0
Auto swep in FD At par cheques Credit Cards Investment
Advisory
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.
90
5. FCRA ACCOUNTS IN BANKS
16
14
14
12
10
8 Res pons e in num bers
6
4
2
2 1 1 1 1 1 1 1
0
I
Ci C
R
ND NB
FC
IC
B
BJ
k
E
BO
BO
OB
an
IC
SB
AT
P
HD
t ib
IC
SY
Interpretation:
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.
91
6. SOURCES OF FUND AND THEIR FREQUENCY
Sources of Funds
30
27
25
20 18
15 Response in nos.
10
0
INDIA ABROAD
Frequency
16
14
14
12
10
8 Resonse in nos.
6 5
4
4 3
2
0
0
Below 10 11-30 31-50 51-70 71 Lacs
Lacs Lacs Lacs Lacs and
Above
92
Form of Receipts
30
26
25
21
20
15 Response in nos.
10
5 3
0
Demand Draft Cash Cheque
Interpretation:
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.
93
7. MAJOR AREA OF INCOMING FUND
100
80
80
60
38
Response in nos.
40
26
20
20
0
With in the With in All over India Abroad
City Rajasthan
Interpretation:
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.
94
8.MAJOR PAYMENT AND THE FORM IN WHICH THEY ARE
MADE
PAYMENT MODE
35 33
31
29 28
30
25 22
CASH
20 17
CHEQUE
15
8 DRAFT
10
5 2 2 1
0
E
S
G
IV
E
Y
IN
S
T
N
IS
A
LA
E
R
P
T
R
IS
X
S
E
IN
T
M
FU
C
D
JE
A
O
R
P
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 related
Draft 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 only
The 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
95
COMPARATIVE ANALYSIS OF
ACCOUNTS WITH COMPETATIVE
BANKS
96
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
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.
97
COMPARATIVE ANALYSIS OF SAVINGS ACCOUNTS
FEATURES ICICI HDFC UTI IDBI HSBC KOTAK

/ BANK
MIN AQB 5,000 5,000 5,000 50,000 25,000 20,000
2 WAY SWEEP YES NO NO YES YES YES
HOME NO NO NO YES CHARGED YES

BANKING
DEMAND CHARGED CHARGED FREE YES FREE FREE

DRAFT
ECS YES YES YES YES YES YES
DEBIT CARD ICICI HDFC UTI IDBI HSBC VISA

DOMESTIC
PHONE YES YES YES YES YES YES

BANKING
NET BANKING YES YES YES YES YES YES
MOBILE YES YES YES YES YES YES

BANKING
TRADING A/C CHARGED CHARGED CHARGED NO CHARGED FREE
DEMAT A/C CHARGED CHARGED CHARGED YES CHARGED FREE
COMPARITIVE ANALYSIS OF CURRENT ACCOUNTS

FEATURES ICICI HDFC UTI IDBI HSBC KOTAK
/ BANK
MIN AQB 100000 100000 AMB- 10000 100000 250000

100000 0
98
2 WAY SWEEP NO YES NO YES YES YES
HOME LIMITED NO NO YES FREE FREE

BANKING
DEMAND LIMITED FREE UPTO Rs. Rs.30 UPTO A UNLIMITED

DRAFT UPTO A 20 LAKH Lakh LIMIT FOR BRANCH
LIMIT (P.M) LOCATION
.FREE FOR
NON-BRANCH
LOCATION
UPTO Rs.30
LAKHS.
DEBIT CARD ICICI HDFC UTI IDBI HSBC ALL VISA
DOMESTIC
AND
INTERNATION
AL ATM’s
PHONE FREE FREE FREE YES FREE FREE

BANKING
NET BANKING FREE FREE FREE YES FREE FREE
MOBILE FREE FREE FREE YES FREE FREE

BANKING
TRADING A/C NO NO NO NO NO FREE
DEMAT A/C FREE FREE YES YES NO FREE
AT PAR FREE FIRST UPTO UPTO FREE UNLIMITED

CHEQUE BOOK FREE Rs.75 Rs.5C FREE
THEN LAKH r. P.M
CHARGED (P.M) free
99
SWOT
ANALYSIS
100
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.

101
 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
102
CONCLUSION
103
CONCLUSION
Limitations of Retail Banking
The 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 Technology
Technology 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.
104
Pressures on Margin
To 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-up
In 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 Hurdles
Earlier 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 Problems
Retail 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”
105
Suggestions
&
Recommandations
106
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.
107
 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
108
Bibliography
109
Bibliography
1. KOTHARI C.R., “RESEARCH METHODOLOGY”,

Second Edition, Vishwa Prakashan, New Delhi, 1990.
2. KOTLER PHILIIP, “MARKETING MANAGEMENT”

PRANTICE- HALL OF INDIA, NEW DELHI, 1991.
3. Literature provided by the company.
4. http://www.kotak.com
5. http://www.google.co.in
110
ANNEXURE
111
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 _________________
112
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)
113
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: ___________

______________________
______________________
______________________
114
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?
‫ ٱ‬Safety
‫ ٱ‬Past relationship
‫ ٱ‬Proximity
‫ ٱ‬others
8) Which of the following facilities does your bank provide you and which
one does
115
You use?
Facility Provides Use Frequency

Branch Banking
Internet Banking
Phone Banking
Home Banking
ATM
9) Are you aware of the following services provided by banks?
Facility Aware Availed

Auto sweep into FD
At par cheques
Credit Cards
Investment Advisory
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
116
INDIA
ABROAD
Form of receipt Response in numbers
Demand Draft
Cash
Cheque
Other
Amount Response in
numbers
Below 10 Lacks
11–30 Lacks
31–50 Lacks
51–70 Lacks
71 Lacks and above
12) Could you specify the areas from which the majority of your funds come?
‫ ٱ‬Within City
‫ ٱ‬Within Rajasthan
‫ ٱ‬All Over India
‫ ٱ‬abroad
117
13) What are the major payments you make and in what form they are made?
118

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A

Project Study Report

Submitted in partial fulfillment for the

Maharaja College of Management

Submitted By: - Submitted To:-

I hereby declare that the work incorporated in the present research

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

Place: PUNEET AUDICHYA

I feel great pleasure in certifying that the research project entitled

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

I recommend the submission of research project.

Place: Udaipur Mrs. Anamica

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

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

S.NO. CONTENTS PAGE

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

BANKING INDUSTRY IN INDIA

PUBLIC SECTOR BANKS:

CO-OPERATIVE SECTOR BANKS:

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

Takes over FICOM, one of India’s largest financial retail marketing

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

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

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

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

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

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

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

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

1994 The Company entered into a Memorandum of Understanding with KB

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

- The Company has received the approval of Securities and Exchange

Investment Banking division incorporated into a separate company -

Kotak Mahindra Capital company became a subsidiary of the Company

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

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

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

Kotak Mahindra Finance Ltd. has decided to venture into health

Kotak Mahindra Finance has launched a new consumer finance product

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

Kotak Mahindra Finance is a joint venture with Goldman Sachs.

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

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

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

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

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

The Company proposes to make the necessary applications to the RBI

OM Kotak Mahindra Life Insurance Company, the recently formed

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

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

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

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

KMFL informed BSE the FITCH ratings assigned: Fixed Deposit

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

Kotal Mahindra Finance Company has shortlisted i-flex solutions

KMFL has raised 76.22cr by selling securitized commercial vehicle

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

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

Business Standard and Business Standard digital have ceased to be the

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

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