COMPARATIVE ANALYSIS OF KOTAK MAHINDRA

BANK SALARY ACCOUNT WITH ITS COMPETITORS

IN DELHI NCR

(Submitted in partial fulfillment of the requirements for PGDM)

By

Name of Student RAHUL KUMAR SINGH

Roll No. DM1517080

Batch of 2015-17

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO 49,

Knowledge Park 3, GREATER NOIDA-201306 (UP)

APRIL 2017

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 1 CERTIFICATE OF ORIGINALITY
2

3 I_________________________________Roll No ______________ of Batch 2015-17, is a fulltime

bonafide student of first year of PGDM Program of Accurate Institute of Management & Technology,
Greater Noida. I hereby certify that this project work carried out by me
at_____________________________________________________ the report submitted in partial
fulfillment of the requirements of the program is an original work of mine under the guidance of the
industry mentor __________________ and the faculty mentor ________________ and is not based
or reproduced from any existing work of any other person or on any earlier work undertaken at any other
time or for any other purpose, and has not been submitted anywhere else at any time
4
5

6
7 (Student's Signature)
8 Date: APRIL, 2017

9
10 (Faculty Mentor's Signature)
11 Date: APRIL 2017

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 ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who contributed directly or

indirectly for the successful completion of the project report, COMPARATIVE ANALYSIS OF KOTAK

MAHINDRA BANK SALARY ACCOUNT WITH ITS COMPETITORS IN DELHI NCR First of all I

am extremely thankful to my college Accurate Institute of Management & Technology for providing me with

this opportunity and for all its cooperation and contribution. I also express my gratitude to my Project mentor

and guide Prof. Vinay jha am highly thankful to our respected project guide for giving me the encouragement

and freedom to conduct my project.

I am also grateful to all my faculty members for their valuable guidance and suggestions for my entire study.

RAHUL KUMAR SINGH

DM1517080

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 Executive Summary

The service industry is one of the fastest growing sectors in India today. The upcoming sectors, which are really

showing the graph towards upwards, are Telecom, Banking, and Insurance. These sectors really have a lot of

responsibility towards the economy. Main focus of this report is based on of the COMPARATIVE ANALYSIS

OF KOTAK MAHINDRA BANK SALARY ACCOUNT WITH ITS COMPETITOR IN DELHI NCR

Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that

encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance,

to investment banking, the group caters to the financial needs of individuals and corporate. The project report

gives an insight about the salary account of Kotak Mahindra bank and throws the lights upon the SWOT

(Strengths, weakness, opportunities, threats) analysis of bank.

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 TABLE OF CONTENTS

PAG NO

Acknowledgements 2
Executive Summary 3
List of Tables 4
CHAPTER -1

Introduction 6
History of banking 6-8
Banking system in India 9-12
Kotak Mahindra bank 13 -21
Objective 22
Chapter 2

The Reserve Bank of India 23-25

Marketing 26 -42
Features & Benefits - Kotak Ace Salary Account

Chapter- 3

Literature review
43
Chapter -4

Research objective 44-46

Research methodology

Data Analysis And Interpretations 48-57

Findings 59
Chapter -5
Conclusion & Recommendation 60-61
Annexure 62-64

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 CHAPTER - 1

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 INTRODUCTION

HISTORY OF BANKING

How did banking originate? What activity resulted in Banking, as we know it today? To answer these questions

it is necessary to step back into history to several thousands of years and study its origins.

Barter

Man was, in the dawn of history, simple and self-sufficient. He lived in caves, killed animals when hungry and

he had no other wants. As time passed, men began living in villages and started to till the ground. Often the

produce of a farmers fields was more that he required. Similarly, a fisherman often caught more than his family

required. In the ideal situation, the farmer would exchange his produce for fish with the fisherman. This

exchange is known as barter. And in the ideal world they would both be content. However, a complication could

and would arise if the farmer did not require or want fish. If the farmer required a plough and the smith requires

steel there would be tremendous and horrendous difficulty in matching those that individuals had with that

which they needed. And it was on account of this difficulty of meeting needs that the barter system surrendered

to money.

Money

Money was created or rather born to reduce the value of the items people had to a common denominator to

facilitate exchange of products to satisfy needs. The fisherman would sell his fish as would the farmer for

money. The farmer would then armed with the money he has in hand purchase a plough. The fisherman with the

money he has received, would buy the food he needs for his family.

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The earliest form of money was bones on which marks were made to distinguish between values. Metals then

began to be used the most popular being gold, silver and bronze. Symbols, sizes and signs on these differed

from time to time and from country to country. As men began to travel from country to country to exchange

goods and to trade, banking was born.

The term money is derived from the temple of Juno Moneta which was used by the Romans as a mint for

their coins.

Banking

Banks were born to facilitate trade to lend monies to purchase goods, to store monies and to change

currencies. Banking began thousands of years ago. The Assyrians, Babylonians and Ancient Greeks practiced

simple forms of banking safekeeping, exchanging foreign coins and making loans mainly in connection with

trade. Temples such as those of Ephesus and Delphi were Greek banking institutions. The Romans did not have

State Banks but had minute regulations regarding private banks. These were calculated to create utmost

confidence in the system. Ancient Rome had two types of bankers those who made loans and those who

exchanged foreign monies.

The term bank is derived from the Italian word banco which means bench. The early bankers, the Jews of

Lombard, transacted their business at benches in the market place and later in inns and taverns. In those days if

a banker failed, his banco or bench was broken, hence the term bankrupt. Another opinion is that the term

bank evolved from the German word back meaning a joint stock fund which was Italianised into banco.

As many of these inns/taverns were known by the signs they had such as eagle, crossed swords etc.

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 BANKING SYSTEM IN INDIA

The Banking System in India consists of :

Reserve Bank

Development Banks

Public Sector Bank.

Foreign Banks

Private Sector Banks

Cooperative Banks

Regional Rural Banks

The Reserve Bank of India

The Reserve Bank of India is the Central Bank of the Country and came into being by the Reserve Bank of

India Act 1934. It was nationalized in 1948.

The bank that issues and regulates the issue of currency in India

The banker to the Government of India and the State governments. It manages the public debt. It

has the obligation to transact the banking business of the Central Government. It undertakes to accept

money on behalf of the Government and make payment on its behalf.

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 The bankers bank. Commercial banks maintain their current account with the Reserve Bank of

India.

The bank that manages the volume of credit created by the commercial banks to ensure price

stability.

The bank that manages the external value of the currency (Indian rupee)

The lender of Last Resort. It will lend to banks in trouble.

Development Banks

These were set up to give long term finance for the development of the country. These are the Industrial

Finance Corporation of India and the Industrial Development Bank of India, The Industrial Reconstruction

Bank of India and the National Bank for Agriculture and Rural Development. A former development bank, the

Industrial Credit and Investment Corporation of India Ltd. by a reverse merger in 2002, became a normal

commercial bank. It is expected that the other development banks, having outlived their utility would also be

either converted to commercial banks or merged with commercial banks.

Public Sector Banks

These are banks which the Government either owns or has a majority stake in.

The largest is the State Bank of India,which was formed by the merger of the Presidency Banks the Bank of

Bengal, the Bank of Bombay and the Bank of Madras in 1921. It was then known as the Imperial Bank. It was

nationalized in 1955 by the passing of the State Bank of India Act, 1955. It has seven subsidiaries or associates.

The other nationalized banks came into being on July 19, 1969 when Mrs. Gandhis Government nationalized

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fourteen banks that had deposits of Rs. 50 crores or more. On April 15, 1980, six more banks having demand

and time liabilities of not less than Rs.200 crores were nationalized. This was done to take banking to the

villages and serve the developmental needs of all sectors of the economy.

Foreign Banks

These are branches of banks incorporated outside India.

The larger ones that have been operating in India for many years are Standard Chartered Bank, Citibank,

American Express Bank, ABN Amro, BNP Paribas and Hong Kong and Shanghai Banking Corporation.

In 1995/ 96 many other foreign banks (optimistic in view of Indias liberalization) opened branches in India.

However, after banking began to become increasingly competitive and margins began to squeeze coupled with

large non-performing assets, many banks closed their branches. These include Dresdner Bank, Comerz Bank,

KBC Bank and Commercial Bank of Siam.

Private Sector Banks

These banks are not government owned or controlled. Their shares are freely traded in the Stock Markets.

These may be divided into:

Old Private Sector Banks such Federal Bank, Dhanalakshmi Bank, Catholic Syrian Bank

New generation Banks such as HDFC Bank, IDBI Bank, UTI Bank and ICICI Bank. Those have

permitted to open provided they had a capital of Rs. 100 crores.

Cooperative Banks

Cooperative Banks are those that created by a group of individuals to support either a community or a religious

group. They operate in metropolitan, urban and semi urban centers to cater to the need s of small borrowers.

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These are controlled by the RBI and by State Cooperative Acts.

In recent years these have been under a cloud on account as several (particularly in Gujarat and Andhra

Pradesh) collapsed under controversy. They were used as vehicles by individuals to finance activities which did

not succeed.

Regional Rural Banks

These came into being on October 2, 1975 when 5 regional rural banks were established under what became the

Regional Rural Banks Act 1975. These were to bridge the gap in rural credit granting loans and advances to

small and marginal farmers, artisans, small entrepreneurs and persons of small means engaged in trade,

commerce, industry or other productive activities within their area of operation.

Local Area Banks

Local Area Banks came into existence in 1999 and licences were given for these banks as it was felt that regular

commercial banks were not financial the rural/ agricultural sector adequately. Licences have given to open

branches in three districts. Branches in urban/ semi urban areas have granted only after ten branches were

established in rural areas/ villages. Four licences were in total granted two in Andhra, one in Punjab and one

in Gujarat. They have opened with an initial capital of Rs. 5 crores. A Report issued in 2002 has recommended

that the capital should increased to Rs. 25 crores and that these be permitted to operate in six districts.

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 KOTAK MAHINDRA BANK

Kotak Mahindra is one of India's leading financial institutions, offering complete financial solutions that

encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance,

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

The group has a net worth of over Rs. 2,900 crores, employs around 8,800 people in its various businesses and

has a distribution network of branches, franchisees, representative offices and satellite offices across 282 cities

and towns in India and offices in New York, London, Dubai and Mauritius. The Group services around 2

million customer accounts.

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit International (FCI)

and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by Kotak Group.

In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak Capital and Kotak Securities

Kotak Mahindra Bank, one of Indias leading private sector banks today announced a major landmark opening

of its 100th full fledged bank branch in Saket, New Delhi. This is a record feat as Kotak Mahindra Bank is the

only private sector bank in India which has reached its 100th bank branch in just 4 years, a feat that none of the

other private sector banks in India have achieved till date.

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Mr. Uday S. Kotak is an Executive Vice Chairman and Managing Director at Kotak Mahindra Bank Limited.

He has been with the firm since August, 2002. Mr. Kotak is the principal Founder and Promoter at Kotak

Mahindra Finance Ltd. He is responsible for the growth of Kotak Mahindra from a fledgling finance company

to a financial institution providing the full basket of financial services. Mr. Kotak has over 18 years of

experience in the financial services industry. He is Chairman and Director of Kotak Mahindra Primus Limited.

Mr. Kotak is also Director of Kotak Mahindra Bank Limited. He is a Director of Kotak Mahindra Asset

Management Company Limited. He is the Chairman of Kotak Securities Ltd. He is also on the board of the

following subsidiary companies of Kotak Mahindra Bank Limited: Kotak Securities Limited, Kotak Mahindra

Capital Company Limited, and OM Kotak Mahindra Life Insurance Company Limited. Previously, he has

served as Non Executive Director of Blue Star Limited until October 2002. He is a Member of Advisory

Committee of National Stock Exchange of India Ltd. Mr. Kotak, received a Post-graduate degree in Business

Administration from Jamnalal Bajaj Institute of Management Studies of Mumbai University

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Kotak Mahindra Bank amongst Hewitts Top 25 Best Employers

Mumbai, April 17, 2009: Kotak Mahindra Bank, one of Indias leading private banks has bagged the Hewitt

Best Employers in India award for the second time in a row. Mr. Subhro Bhaduri Executive Vice President-HR,

Kotak Mahindra Bank received the Award. Speaking on the occasion Mr. Bhaduri said, We are indeed very

proud to be the recipients of the Prestigious Hewitt-Outlook Business Best Employers in India Study for the

second time. Our People practices are aligned to our culture and values and this makes Kotak Mahindra Bank a

preferred employer in the industry. Through significant time, energy and investment in people

Management practices and processes, we have been able to maintain Kotak Mahindra Bank as one of the Best

Employers in India in 2009.

An independent jury comprising of has selected the Hewitt Best Employer awardees

eminent members from the industry and academic world. The 2009 study also introduced new research

initiatives to evaluate how new dimensions such as personal values, CSR, and workplace diversity impact

human capital management for business growth and witnessed participation from over 230 organizations. The

views of over 800,000 employees have been represented by over 46,000 employees across India, making this

one of the largest employee research studies conducted in the country.

SOME OF THE IMPORTANT MILESTONES OF KOTAK MAHINDRA GROUP

1986: Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987: Kotak Mahindra Finance Limited enters the Lease and Hire Purchase Market.
1990: The Auto Finance division is started
1991: The Investment Banking Division is started. Takes over FICOM, one of India

Enters the Funds Syndication sector

1995: Brokerage and Distribution businesses incorporated into a separate Company -

Kotak Securities. Investment Banking division incorporated into a separate Company -

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Kotak Mahindra Capital Company
1996: The Auto Finance Business is hived off into a separate company - Kotak

Mahindra Prime Limited (formerly known as 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 Groups

entry into information distribution.

1998: Enters the mutual fund market with the launch of Kotak Mahindra Asset

Management Company.
2000: Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.

Kotak Securities launches its on-line broking site (www.kotaksecurities.com).

Commencement of private equity activity through setting up of Kotak Mahindra Venture

Capital Fund.
2001: Matrix sold to Friday Corporation Launches Insurance Services
2003: Kotak Mahindra Finance Ltd. converts to a commercial bank the first Indian

Company to do so.
2004: Launches India Growth Fund, a private equity fund.
2005: Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime

(formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak

Mahindra. Launches a real estate fund.

Buys out Goldman Sachs' equity stake in Kotak Mahindra Capital Company
and Kotak
2006
Securities Ltd.

2008 Launched a Pension Fund under India's National Pension System (NPS)

Kotak Mahindra Bank Ltd. opens a representative office in Dubai

Kotak Mahindra Bank Ltd. becomes anchor investor in Ahmedabad
2009
Commodities
Exchange (ACE)

ING Vysya Bank has merged with Kotak Mahindra Bank with effect from April
2015 1, 2015.

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2016
Kotak Mahindra Bank Acquires 10,00,000 Equity shares of Institutional Investor
Advisory Services India Limited
Kotak Mahindra Bank Acquires 9,83,82,022 (19.90%) Equity Shares of Airtel M
Commerce Services Limited Company (AMSL)
Kotak Mahindra Bank launches International Banking Unit in Gujarat
International Finance Tec-City (GIFT City), Gandhinagar, Gujarat
Kotak Mahindra Bank Acquires BSS Microfinance Private Limited

Growth Story of Kotak Group

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 KOTAK SYMBOL

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 KOTAK PRODUCT LINE

SAVINGS ACCOUNTS

Our Savings Accounts are designed to ensure you receive the benefits of quick & convenient banking

transactions along with options for your money to earn high returns. The savings account goes beyond the

traditional role of savings, to provide you a range of services from funds transfer options to online payments of

bills to attractive returns earned through a comprehensive suite of investment options.`

We have a number of variants of our savings accounts customized to suit your individual needs so pick the one

that matches your requirements & sit back to enjoy the Kotak experience!

TERM DEPOSITS

Kotak Mahindra Bank brings you Term Deposit at highly attractive interest rates coupled with special facilities

like Overdraft and Re-investment option.

Features & Benefits

Ease and convenience of operation not a Kotak Bank customer and wish to apply for term deposit online?

For the first time in India, New To Bank customer can also apply online for term deposit.

If you are an existing customer, you can place a term deposit through Phone Banking or Net Banking. What's

more, you can even renew this deposit by placing an instruction over phone. Needless to mention, he can do all

this and more by walking across into any of our branches.

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Liquidity through overdraft or sweep-in facility your deposit will be available to you should you need them in

case of an emergency. You can avail up to 85% overdraft against your term by paying 2% above your deposit

rate. This facility is available for deposits above Rs.50,000 for a tenure of 181 days or more. You can also

choose to link your term deposit to your savings / current account, whereby if need be, your term deposit will

automatically be encased to meet your withdrawal requirement.

No penalty on pre-mature encashment In case your term deposit is pre-maturely encased, you will earn interest

at the rate prevailing on the date of deposit for the withdrawn amount.

Nomination facility available You can avail this facility for each & every account that you open with us i.e.

nominate different persons for different term deposit accounts. You can choose to change the nominee through a

declaration in the appropriate form to revise the nomination during the term of the deposit.

In case you are availing the 2-Way-Sweep feature, nomination, if any, made by you in respect of the savings /

current account for which you are availing this feature will be deemed to be the nomination for any sweep TD

created pursuant to the Active Money feature availed by you.

COMPARATIVE ANALYSIS OF KOTAK MAHINDRA BANK SALARY ACCOUNT WITH ITS

COMPETITORS

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 Objective:

The main of the present study of is accomplish the following objective.

Proper understanding and analysis of banking industry.

To know about brand awareness of Kotak Mahindra Bank and customers preference about

Kotak Mahindra Bank.

Conduct market survey on a sample selected from the customer and derived opinion on that

research.

Along with it I will be gaining the thorough knowledge of banking sector. This will give me in

more confidence in marketing products given to me.

As the Kotak Mahindra Bank well reputed bank in India its great chance for me to observed

different products launch by other competitor companies like ICICI BANK, HDFC BANK etc.

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 CHAPTER -2

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 RESERVE BANK OF INDIA

Establishment

The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve

Bank of India Act, 1934.

The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to

Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated.

Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the

Government of India.

Main Functions

Monetary Authority:

Formulates, implements and monitors the monetary policy.

Objective: maintaining price stability and ensuring adequate flow of credit to productive sectors.

Regulator and supervisor of the financial system:

Prescribes broad parameters of banking operations within which the country's banking and financial

system functions.

Objective: maintain public confidence in the system, protect depositors' interest and provide cost-

effective banking services to the public.

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Manager of Foreign Exchange

Manages the Foreign Exchange Management Act, 1999.

Objective: to facilitate external trade and payment and promote orderly development and maintenance of

foreign exchange market in India.

Issuer of currency:

Issues and exchanges or destroys currency and coins not fit for circulation.

Objective: to give the public adequate quantity of supplies of currency notes and coins and in good

quality.

Developmental role

Performs a wide range of promotional functions to support national objectives.

Related Functions

Banker to the Government: performs merchant banking function for the central and the state

governments; also acts as their banker.

Banker to banks: maintains banking accounts of all scheduled banks.

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 HIERARCHY OF RBI

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 MARKETING OF KOTAK

Marketing at Kotak Mahindra Bank categorizes in to four departments - Marketing Communications, PR &

Corporate Communications, Marketing Activation & Marketing Operations. These departments act as an

advisory and support channel towards marketing strategies and PR planning to ensure effective brand building

through brand awareness and visibility. The objective is to implement effective campaigns and promotions

which would help in meeting the business targets and getting media coverage for the same.

We provide support at two broad levels - Branch Marketing and Central Marketing.

Marketing Activation

All marketing activities done at a branch level come under branch marketing. This may be in the form of new

branch launches, branch based events, sales promotions, merchandising, and creation of any marketing

collaterals for the branches. Branch centric PR & outdoor support also comes under the branch marketing.

Promotion Documents

Promotion proposal

Please fill the promotion proposal once the branch finalizes a promotional activity

Provide a description of the activity that you wish to undertake.

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Please mention if any Special Offers like AQB waiver etc are required. (For all AQB related offers approvals

from Amit Pathak, & Amresh Mohan are necessary.)

Other details like Venue, activity period needs to be filled in correctly.

If you need any marketing or promotion material please specify the correct quantity

Detail out planned cost break up for any sponsorship or manpower that you need for the activity.

Give the planned promotion output in form of planned leads and conversions. We can then match them with the

actual leads and conversions post the activity.

Branch Manager or any relevant authority needs to approve the activity.

To download a copy of a promotion proposal please click here

Promotion Codes

Promotion codes are generated to track the efficiency of the activity. Marketing generates the code once the

activity is approved.

Marketing Communications

Marketing Communications takes care of the creation, rollout and analysis of all national campaigns at the

brand and product level. This includes doing various brand and product campaigns as well as researches to

monitor the growth of the brand and the campaign deliveries. This department also takes care of creative

conceptualization and rollout of all regional requests (events, promotions, contests, campaigns) Central

marketing also provides support to both the product team and the branches in terms of conceptualizing and

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standardizing marketing collaterals. These include standard branch collaterals like posters, banners, e-mailers,

brochures etc.

Process for all Marketing Collaterals

Please fill in the creative brief with all relevant details which will help us to understand your requirements and

design appropriate collaterals for you. Please ensure that the creative brief is filled in detail so that the creative

team gets an accurate understanding of the requirement. Partially filled briefs / requests without creative brief

will not be entertained.

After receiving the creative brief marketing would come up with design of the collaterals and share it with the

concerned team

All collaterals will be subject to compliance/legal approval

Post compliance/legal approval the collaterals would be put into print.

Post campaign you are requested to send the details of the leads captured / business sourced, so that we can

have an understanding of the effectiveness of the campaigns.

All regional requests need to be routed through the respective Regional Marketing Manager for that region.

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 COMPETITORS

HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in

principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the

RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the

name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations

as a Scheduled Commercial Bank in January 1995.

ICICI BANK

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ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31,

2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,471

branches and about 4,721 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of

banking products and financial services to corporate and retail customers through a variety of delivery channels

and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life

insurance, venture capital and asset management.

SBI BANK

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the

establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter

and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock

bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the

Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern

banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the

compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from

outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas

culled from similar developments in Europe and England, and was influenced by changes occurring in the

structure of both the local trading environment and those in the relations of the Indian economy to the economy

of Europe and the global economic framework.

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AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of

India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the

specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance

Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United

India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 359.76 crores with the public holding (other than promoters)

at 57.79%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very

wide network of more than 853 branches and Extension Counters (as on 30th June 2009). The Bank has a

network of over 3723 ATMs (as on 30th June 2009) providing 24 hrs a day banking convenience to its

customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry

practices internationally in order to achieve excellence.

SOME OTHER COMPETITORS ARE.

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 Features & Benefits - Kotak Ace Salary Account

EDGE Privileges

You need a savings avenue that makes the most of your hard-earned money. We offer you the Kotak Edge

Salary Account, armed with Kotak ActivMoney and our entire gamut of Banking Privileges. The feature rich

Kotak Edge Salary Account is the ideal way to make your money work harder.

Activ Money

Your Kotak Edge Salary Your Kotak Ace Salary Account combines liquidity of a Savings Account with the

attractive returns of a Term Deposit through the unique Kotak Activ Money benefit.

Kotak Advantages

Your Ace Salary account comes to you with a host of advantages that are aimed at providing you a superior

Banking experience.

Free At-par Cheques

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 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 you 'free' of charge. You can now save DD making

charges while enjoying the convenience of a cheque.

Free Demand Drafts

Avail Demand Drafts, free of cost, payable at any location in India, up to a pre-specified limit, just by

calling our Phone Banking Service.

Free Cheque Collection

Outstation cheques, drawn on any of our branch locations, would be collected 'free of charge' for you.

Only a nominal charge is levied for non-branch locations.

Free Electronic Fund Transfer Transfer

Transfer funds to third party accounts in other banks, without drawing a Demand Draft or a cheque, by

using our Electronic Fund Transfer facility. With this facility you can save on Demand Draft

making/couriering charges and also transfer funds faster!

Bill Pay Services

This service enables you to make your Utility Bill payments like electricity, telephone and mobile

phone bills.

Ace Privileges
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 Your Ace account has been designed with exclusive benefits that give an extra fillip to your banking

experience.

Free Demat Account

As an Ace Savings customer, you can also open a Demat Account with us free of charge.

Reimbursement Current Account

As Salary account holders employees can also opt for a Reimbursement account which helps you to

manage the official reimbursements, petty cash etc., this facility specifically will help you eliminate cash

handling related to petty expenses

Family Savings Accounts

Your Ace account allows you to now extend the Kotak banking experience to three of your family

members. The Family Savings Accounts come to you with a host of benefits like Kotak ActivMoney, At-

par Cheque facility and other attractive features. So now even your dear ones can enjoy banking the

'Kotak way'!

Your savings account will be provided a link to your online trading account with Kotak securities to

enable your to transfer funds from your bank account to your account with KS and vice versa". And with

our Payment Gateway facility you can even pay your trading bills online from your bank account

directly.

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 Free Investment Account

Avail a free Investment Account that provides you a consolidated view of all your investments. The

Investment Account statement gives a 'single window view' of your Mutual Fund portfolio, listing the

NAV of each scheme invested into, current consolidated value of your portfolio, and realized/unrealized

returns against each investment made.

Personal Investment Advisor

To identify and analyse your specific investment requirements we provide you a dedicated Personal

Investment Advisor. This person alerts you to investment opportunities, sends you regular updates and

feedback on the performance of your investments, helping you monitor, manage and grow your wealth

in the ever fluid investment climate.

Convenience Banking

A host of Convenience Banking facilities allow you to access your account anytime, anywhere.

Global Debit Card

Access your account free of cost at any VISA ATM in India or abroad using your Global Debit Card.

You can use your Debit Card at all VISA affiliated merchant establishments worldwide. As an Ace

Savings account holder you

can gift free add-on cards to your family members too.

Phone Banking

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 Dial our 24 hour Toll Free number 1800 116022 (North India) OR 1800 226022 (Rest of India) from

anywhere and our customer Care Officer will help you instantly with your banking requirements.

Net Banking

Just log on to www.kotak.com to access our Net Banking facility. Take advantage of the Internet to

bank from home, office or anywhere in the world at a time of your convenience.

Mobile Banking & Alerts

Use this service to access your bank account anywhere, anytime! It is quick and easy, available to you

24X7 and its absolutely free! You dont have to pay any charge to avail this service. You can use Mobile

Banking to check account balance, last 3 transaction details, issued cheque status and request a cheque

book. You can use Alerts Service to get Alerts by SMS and / or email whenever a debit or credit above

any amount specified by you happens to your account.

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S.NO. Column1 Column1
S. FEATURE SALARY2WEALTH
NO 1 Minimum
S 17,000 10,000 12,000
Average Salary
2 Minimum 20 10 25
Number Of SALARY
Employees
3 Reimbursement YES YES YES ACCOUNT
Account FEATURES
4 Term Deposit YES, Sweep In Yes but only YES: But not
OF KOTAK
Sweep threshold of Rs sweep In automated
20,000 & Sweep Out AND
at Rs 10,000, OTHERS
Automated, 2 way
sweep
5 Investment Available to all NA NA
Account employees
6 Investment Available to all Only to selective Only to
Advisory employees customers- selective
Services Available to all customers-
Available to all
7 Account Monthly Free Quarterly Free Quarterly Free
Statements
8 Free Online Bill YES YES YES
Payments
9 Salary Alerts on YES YES YES
Mobile
10 Net Card YES NA NA
11 Account In a week's time. In a week's time- Instant
Opening & ( can provide instant Instant kit
Welcome Kits kits only for selective facility
CAT A companies)
12 Online Purchase/ Redeem NA NA
Investment Mutual fund of 23
AMCs

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 SWOT ANALYSIS OF KOTAK MAHINDRA BANK

COMPETITIVE ADVANTAGE

SWOT ANALYSIS

Environmental Scan

Internal Analysis External Analysis

Strength Weaknesses Opportunities Threats

SWOT Matrix

STRENGTHS

1. The Kotak Mahindra group which is one of the largest financial instiutions in India, ever since its

inception in 1986 the Kotak Mahindra group has created numerous success stories in whatever business

they landed. It gives kotak mahindra insurance company an advantage to enjoy the already existing

goodwill of kotak mahindra group.

2. The kotak Mahindra bank providing good personalized service to their salary account, they give salary

account according to the need of the customer.

3. Kotak Mahindra Company has been rewarded with Kotak Mahindra Bank amongst Hewitts Top 25

Best Employers this depicts the actual performance of the organization in terms of its efficiency.

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 4. The company spends less on marketing so it actually has more finances available to sustain the growth

of the company and provide better returns to the customers.

5. Kotak Mahindra bank offers the most flexible, innovative unique products and features such as free

Global Debit Card, Active Money which surely gives it a competitive edge over the competitors.

6. The distribution channel is amazing with a wide reach as the company has offices all over India in more

than 60 cities.

WEAKNESS

1. The company does not spend much on marketing and it actually may be a reason for not being a market

leader among the private players.

2. The company has yet to make any significant presence in the rural sector as the brand name is yet not

famous in the rural India.

3. The company has a conservative approach and they believe in steady and very safe progress , which

actually results them to be in a position where they are behind some of the more aggressive market

players like ICICI

4. In India the rural market and middle class society still dont have faith in private insurers and their

genuinity.

5. Kotak Mahindra bank offers have very less no of branch and ATM.

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OPPORTUNITIES

1. The whole rural market is a kind of niche segment for opening of accounts, deposits, borrowings, and

insurance business. So, kotak is at par with all other private companies and the its an equal

competition for all, there is an opportunity to make a mark and be the first among the private bank and

capture the rural market.

2. The Kotak being such a big name has an opportunity to grow its insurance business as well increase its

distribution channel whole over the world by using the goodwill of the group companies and they can

even target the customers of each company of their group to get insurance through them by offering

special incentives or schemes.

3. The good showing at the stock markets and growing Indian economy enables the kotak company to

give better .

4. The kotak Mahindra should come also lover segment.

THREATS

1. The rural India and middle class India still do not have faith in private players.

2. The Kotak Mahindra bank is competing with private companies, which are spending huge amounts on

marketing, so to maintain a competitive edge with these companies in terms of acquiring market shares

would be a tough task.

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 3. Now a days every cost is very important feature for Kotak, bank should reduce the cost and control the

pricing.

ISSUES AND CHALLENGES FOR THE COMPANY:

1. The company doesnt spend much on marketing and it actually may be a reason for not being a

market leader among the private players.

2. The company has yet to make any significant presence in the rural sector as the brand name is yet

not famous in the rural India.

3. The company has a conservative approach and they believe in steady and very safe progress , which

actually results them to be in a position where they are behind some of the more aggressive market

players like ICICI

4. In India the rural market and middle class society still dont have faith in private bank and their

genuinity

The kotak mahindra bank is competing with private companies which are spending huge amounts on marketing,

so to maintain a competitive edge with these companies in terms of acquiring market shares would be a tough

task.

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 CHAPTER -3

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 LITREATURE REVIEW

In the Branchless banking guidelines of Pakistan (2007), Branchless Banking has been defined as a significantly
cheaper alternative to conventional branch-based banking that allows financial institutions and their commercial
actors to offer financial services outside tradional bank premises by using delivery channels like retail agents,
mobile phones etc

Wikipedia (2009) defined Branchless Banking as a distribution channel strategy used for delivering financial
services without relying on bank branches. Also Websters dictionary (2003) defined Branchless Banking as an
on-line only bank with service representatives available by phones or internet for extended hours.

Branchless Banking may not necessarily be an alternative to branch based banking system. It can be either
serve as a complement to an existing branch based system or it could be channel that is not in any way related
to bank branch. In Nigeria branchless banking only operates within existing branch networks. Presently there is
no form of Branchless Banking entirely independent of a branch

For literature reviewed, the major reason for the introduction of Branchless Banking in many nations of the
world is that, it is seen as a way of reaching the unbanked. The unbanked can simply be described as those
individuals that do not have form of account with a bank. Anderson

(2007) defined the unbanked as diverse group of individuals who remain outside the banking mainstream
for many reasons.

Gautam (2008) stated the Africa has about 230 million unbanked household. In the same vein, Ladipo (2008)
reveled in the survey carried out by EFINA that cuts across all the states of Nigeria over 5 year period and the
sample based on sample based on national integrated survey of households, that 74% (which is equivalent to
64 million people) of the adult population in the country have never been banked. The study revealed further
that about 40 million other adults have left the banking system. Also 86% of the rural populations are currently
unbanked.

South-Africa the largest and richest economy in the region with a quarter of Africa s GDP, has a well-
developed financial sector, yet another 40% of south Africans have bank accounts. Gautam (2008). In Mexico
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less than 25% Mexicans have bank accounts.

CHAPTER -4

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 RESEARCH OBJECTIVE

Our main objective was to find out that customer are satisfy with their salary account or not. The main problem

was how they use banking service. On which area bank need improvement. The accountholder is happy with the

services provided by bank.

To get all information a thorough planning had to be done, so I first started with designing the questionnaire for

the clients whom I was going to target and to know about their investment pattern. The main things to be known

from the clients were:

1. Are they happy with bank

2. Which channel they use

3. Other product they use

4. area of improvement

Research Methodology:

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Research Methodology is the basic framework, which provides guidelines for the rest of the research process

and a way to systematically solve the research problem. It is a map or a blue print according to which the

research is to be conducted. The research methodology specific to this project is as follows.

Type of Research

Research type for this project includes surveys and fact-finding enquiries of different kinds. The research aims

at gathering information about effectiveness of Promotional strategies of Kotak Mahindra Bank.

Research Requirement

A research design is master plan specifying the methods and procedures for collecting and analyzing the needed

information. Here is our project we adopted the descriptive (sample survey) and analytical research method.

Research instrument

There is various way of research instrument of collecting primary data, the various methods are:-

1. Questionnaires.

From the above mentioned research instruments I had used only Questionnaires technique to find out the

various information about the clients such as their turnover, chartered accountant, investment behaviors, who is

their financial consultant etc. And this was the technique which I felt the best way to extract information about

the client.

Sampling Plan

Like in many marketing research project where making a census study of the entire universe would be

impossible an account of limitations of time and money. Hence sampling becomes inevitable, in the study also,

sampling is done to gather information from the market place. However the success of the sample truly

represents that of the universe.

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Sample size

100 questionnaires for Kotak Mahindra Bank customers.

Data collection Method

Data collection is an elaborate process in which researcher makes a planned search for all relevant information.

Here in this project we have used both the primary and secondary data.

Major company we take

Icici bank

Axis bank

Primary data: Questionnaire

Secondary data:Kotak Mahindra Bank Website

HDFC Bank Website

Books

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 DATA ANALYSIS AND INTERPRETATIONS

Q1. How do you find the salary account provided by Kotak Mahindra Bank?

Poor 12%

Satisfactory 24%

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Excellent 16%

Very good 20%

Good 28%

INTERPRETATION:- As per survey we came to know that respondents 12 % poor ,24% satisfactory ,
excellent 16% ,very good 20% , good 28 % .

Q2. Do you have any other product of Kotak Mahindra Bank except Salary Account (like Term Deposit, Demat

Account, Insurance, Mutual Fund, Home loan, Personal loan, car loan, etc)?

Yes 20

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No 80

INTERPRETATION:- As per survey we came to know that respondents in third party product 80 % no and
20% yes

Q3. Are you satisfied with your salary account?

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Yes 80

No 20

INTERPRETATION:- As per survey we came to know that respondents in satisfied with salary account 80%
people YES , 20% NO .

Q4.Which channel you use to Access your Account?

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INTERPRETATION:- As per survey we came to know that PEOPLE are accesst tha account for mobile
banking 10% ,phone banking 30% , direct bank 60 .

Phone banking 30

Internet banking 10

Direct bank 60

Q5. Are you satisfied with your Relationship Manager Service?

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YES 55

NO 45

INTERPRETATION: As per survey we came to know that PEOPLE are satisfied with relationship manager
55% yes ,and 45 % no.

Q6. Do you receive updates on new product feature, various investment products offering?

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INTERPRETATION: As per survey we came to know that receive updates on new product feature 68% yes

and 32 % no

Yes 68

No 32

Q7. What are the area of improvement?

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INTERPRETATION: As per survey we came to know that improvement updates 13 % , services 37% ,
product 14% ,technology 11% , RM 25%.

Q8. ANNUAL INCOME

% OF RESPONDENTS

5% 10%
5% 0-1,00,000
1,00,000-2,50,000
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 2,50,000-5,00,000
50% 30% 5,00,000-8,00,000
8,00,000-ABOVE

ANNUAL INCOME % OF RESPNDENTS

0-1,00,000 10%
1,00,000-2,50,000 5%
2,50,000-5,00,000 30%
5,00,000-8,00,000 50%
8,00,000-ABOVE 5%

INTERPRETATION:-

The above figures shows that the people comprising of 5, 00,000-8, 00,000 annual income are more using
Branchless Banking services compare to all other income levels people

Q9. WHICH OF THE FOLLOWING PRODUCTS DO YOU USE?

% OF RESPONDENTS

5%

CURRENT
45% 55% A/C
SAVINGS

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 Salary
account

PRODUCT % OF RESPONDENTS
CURRENT A/C 55%
SAVINGS A/C 45%
Salary account 5%

INTERPRETATION:-

From the above figure we concludes that no of current account user are much more as compared to savings
account users and only 5% respondents out of 100 respondents are using salary account the current and
savings account service.

CHAPTER -5
58 | P a g e
 FINDING

According the survey people are satisfied with their salary account they are happy with the

product and offerings.

Salary account customer do not have third party product like Term Deposit, Demat Account,

Insurance, Mutual Fund, Home loan, Personal loan, car loan, etc).

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 Salary account customer are not satisfy with the service of bank and the service provide by the

relationship manager

Very less people are using Mobile or SMS banking

CONCLUSION AND RECOMMENDATION

The customer of Kotak Mahindra Bank is highly satisfy with the product and service of the bank means

bank have done good work on that.

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 The very first thing that Kotak Mahindra Bank required to increase the infrastructure means bank need

to open new branches across the india.

Now Kotak Mahindra Bank is well known brand in the financial market so bank have to enter in the

mass banking

Apart from premier banking Kotak Mahindra Bank have to increase the reach and come on lower

segment.

Urban market is saturated now bank have to focus on to the rural market

REFERENCES
In order to obtain more information regarding the present study and to substantiate it with theoretical proof, the
following references were made

Websites visited:

www.kotak.com

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www.rbi.org.in

www.google.com

www.icicibank.com

www.hewittasia.com

MAGAZINES:

BUSINESS TODAY

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 ANNEXURE

QUESTIONNAIRE CORPORATE SALARY ACCOUNTS

1 How do you find the salary account provided by Kotak Mahindra Bank?

(a)Excellent (b) Very Good (c) Good (d) Satisfactory (e) Poor

2 Do you have any other product of Kotak Mahindra Bank except Salary Account (like Term
Deposit, Demat Account, Insurance, Mutual Fund, Home loan, Personal loan, car loan, etc)?

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 (a) Yes (b) No

3 Are you satisfied with your salary account?

(a) Yes (b) No

4 Which channel you use to Access your Account?

(a) Direct Branch (b) Phone Banking (c) Net Banking (d) Mobile Banking

5 Are you satisfied with your Relationship Manager Service?

(a)Yes (b) No

6 Do you receive updates on new product feature, various investment product offering?

(a)Yes (b) No

7 What are the area of improvement

(a) Service (b) Product (c) RM (d) Technology (e)Updates.
Q8 ANNUAL INCOME

A) 0-1,00,000 (b) 1,00,000-2,50,000 (c) 2,50,000-5,00,000 (d) 5,00,000-Above

Q9. WHICH OF THE FOLLOWING PRODUCTS DO YOU USE?

(a) Current (b) Savings (c) SALARY ACCOUNT

10 Suggestions:...

NAME :...

COMPANY :

CELL NO. :

SIGNATURE :

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