A SUMMER INTERNSHIP PROGRAM

SUBMITTED BY DIVISION FACULTY GUIDE KULSHRESHTHA COMPANY GUIDE PRIYADARSHI BATCH

: : :

NEHA GUPTA IT+MARKETING Mr. AMIT

Mr. MAYANK

2007-2009

A PROJECT REPORT ON

COMPARISON OF SAVING ACCOUNTS OF DIFFERENT BANKS IN JAIPUR For

Submitted to: Mr.Mayank Priyadarshi Submitted by: Neha Gupta

INDIRA SCHOOL OF CAREER STUDIES, PUNE- 411033.

Partial Fulfillment of the Requirements of Post Graduate Program (PGP-Marketing + International Business) Batch (2007-2008)

CERTIFICATE

This is to declare that I Neha Gupta, student of post graduate program (IT+ MKT) (2007-2009), Indira school of career studies, Pune has given original data and information to the best of my knowledge in the project report titled Comparative Analysis of saving accounts of different banks. And that no part of information has been used for any other assignment but for partial fulfillment of the requirement towards the completion of the said course. I also agree in principal not to share the vital information with any other person outside the organization and that I have not submitted it for any award or any other title, degree or diploma.

Mr. Mayank Priyadarshi (Branch Sales Manager)

Neha Gupta

ACKNOWLEDGEMENT
This acknowledge is not merely a catalogue of names but an expression of a deep sense of gratitude to all those who helped me in undertaking this project on comparison of saving accounts of different banks and generating leads. I owe a great deal to Indira School of Career Studies for laying the building blocks of logic and pragmatism in my life. This report, in a way is a reflection of these values. I would like to express my earnest gratitude and thanks to Mr. Mayank Priyadarshi (Branch Sales Manager) without whose help and guidance this project would have not been complete. I am also thankful to my faculty guide Mr.Amit Kulshreshtha for his encouragement and guidance throughout the project. I am also thankful & indebted to Miss Mamta Agarwal, Miss Charu Bajaj and all other senior member with whom I interacted during the course of the project, for offering their kind cooperation during the course of the project. The report is the result of contributions of numerous people-too many to mention individually. I Also thank all the respondents who have given their valuable time, views and authentic information for this project. I thank my family for their support in all aspects of my life. I am obliged to all my colleagues for providing a homely environment during my project and for their valuable suggestions. They have really helped me to work in the tough environment

Neha Gupta

INDEX

Serial

Title

Page Number

Executive Summary

Introduction

10

Company Profile

21

Detailed Study of Companys Saving Acc.

28

Project

33

Comparison of Savings Acc.

39

Recommendations

53

Limitations

55

Questionnaire

57

10

Conclusions

60

11

Bibliography

62

EXECUTIVE SUMMARY

1) Title banks 2) Organisation

: Comparative analysis of saving accounts of different : Kotak Mahindra Bank

3) Reporting officer : Mr. Mayank Priyadarshi 4) Faculty guide 5) Students name : Mr. Amit kulshreshtha : Ms. Neha Gupta

OBJECTIVES: To study the behaviour of customers towards savings accounts of different banks. To identify market potential for different products of Kotak Mahindra Bank. To know people perception of risk, rate of return, period of investment, age, profession etc. To understand various factors or criteria of selection influencing the prospects decision. To study about the awareness and interest of people in different types of saving accounts of Kotak Mahindra Bank. To study about the target customer and future potential. To identify any particular service customers need which can increase the market share of Kotak Mahindra Bank. SCOPE OF STUDY: Study on consumer behaviour was done in city of Jaipur .Different gender, age groups and professions of the population are studied. Total of 100 people were taken for study.

RESEARCH METHODOLOGY: As a market analysist, the research undertaken comprised of following objectives: Basic understanding of present and future market potential. Analysing the behaviour of different customer groups through interviewing and getting the questionnaires filled. Determining the satisfaction level of existing customers of Kotak Bank. Analysing the core services of the Bank and then combining it with the allied services of the Bank in order to satisfy the augmented needs of the customers. RESEARCH DESIGN: For study both primary data and secondary data were required: Primary data source: Survey, using a questionnaire and interview of 100 respondents was done from different regions of Jaipur. Secondary source: Internet

METHOD OF DATA COLLECTION

Primary data Questionnaires References

Secondary data Company records Newspapers

Internet MAJOR CONCLUSIONS: People invest in saving accounts mainly for savings purpose. There is wide range of services the bank provides in comparison to other banks. People are not much aware of the existence of the Kotak Mahindra Bank in their city. Age, gender and income level plays an important role in selection of funds. Among the banks studied, the preference of Banks is as follows: HDFC > ICICI > KOTAK > STANDARD CHARTED RECOMMENDATIONS: There is a need of making people more knowledgeable about the products of Kotak Mahindra Bank. Company should do promotional activities regarding its services and schemes.

INTRODUCTION

10

LET US FIRST UNDERSTAND ABOUT BANKING: "Banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act. LAWS OF BANKING: Banking law is based on a contractual analysis of the relationship between the bank and the customer. The definition of bank is given above, and the definition of customer is any person for whom the bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows: The bank account balance is the financial position between the bank and the customer, when the account is in credit, the bank owes the balance to the customer, when the account is overdrawn, and the customer owes the balance to the bank. The bank engages to pay the customer's cheques up to the amount standing to the credit of the customer's account, plus any agreed overdraft limit. The bank may not pay from the customer's account without a mandate from the customer, e.g. a cheque drawn by the customer. The bank engages to promptly collect the cheques deposited to the customer's account as the customer's agent, and to credit the proceeds to the customer's account. The bank has a right to combine the customer's accounts, since each account is just an aspect of the same credit relationship.

11

 The bank has a lien on cheques deposited to the customer's account, to the extent that the customer is indebted to the bank. The bank must not disclose the details of the transactions going through the customer's account unless the customer consents, there is a public duty to disclose, the bank's interests require it, or under compulsion of law. These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force in the jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship. HISTORY OF BANKING: The banking in India originated with the introduction of barter system: Barter Man was, in the dawn of history, simple and lived other wants. As started to till the ground. self-sufficient. He

in caves, killed animals when hungry and he had no time passed, men began living in villages and Often the produce of a farmers fields a fisherman often caught more the farmer would exchange

was more that he required. Similarly,

than his family required. In the ideal situation,

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 and horrendous with that money. Money which smith requires steel there would be tremendous they needed. And it was on account of this that the barter system surrendered to difficulty in matching those that individuals had

difficulty of meeting needs

12

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.

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. Journey of banking: Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. The government's regular policy for Indian bank since 1969 has paid rich dividends. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. Phase 1: The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. There were approximately 1100 banks,

13

mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Phase 2: Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. 14 major commercial banks in the country were nationalized. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase 3: This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices.

14

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.

THE 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 Reserve bank: the Reserve Bank of India is the Central Bank of the country whose function is to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." Development banks: Financial institutions dedicated to fund new and upcoming businesses and economic development projects by providing equity capital and/or loan capital.

15

Public Sector Bank: The public sector is the one whose working is in the hands of the Government. The Government holds a majority stake in public sector. But due to privatization of public sector, their number has been reduced to a significant extent. It may be defined as an enterprise where there is no private ownership but its activities are not mainly confined to the maximization of profits and private interests of the enterprise but it is influenced by social interests.

Foreign Banks: Foreign bank means a banking institution incorporated or organized under the laws of another country, or a political subdivision of a country other than the United States, that is: Regulated as such by that country's or subdivision's government or any agency thereof; Engaged substantially in commercial banking activity; and Not operated for the purpose of evading the provisions of the Act.

Private Sector Banks:

Private Banks are banks that are not incorporated. A non-incorporated bank is owned by either an individual or a general partner(s) with limited partner(s).

Cooperative Banks:

16

Cooperative banks, also called mutual savings and loans, exist in most parts of the world. They offer financial services on a cooperative basis. A mutual savings bank is a financial institution chartered through a state or federal government to provide a safe place for individuals to save and to invest those savings in mortgages, loans, stocks, Bonds and other securities. Unlike commercial banks, savings banks have no stockholders; the entirety of profits beyond the upkeep of the bank belongs to the depositors of the mutual savings bank.

Regional Rural Banks: Rural banking in India started since the establishment of banking sector in India. Rural Banks in those days mainly focussed upon the agro sector. Regional rural banks in India penetrated every corner of the country and extended a helping hand in the growth process of the country. National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts. It helps in securing rural prosperity and its connected matters.

SECTOR BANKS: Central Bank: Reserve Bank Of India Private Banks: Axis Bank , Bank of Rajasthan Bharat Overseas Bank Catholic Syrian Bank Centurion Bank of Punjab City Union Bank .Development Credit Bank Dhanalakshmi Bank Federal Bank Ganesh Bank of Kurundwad HDFC Bank ICICI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir

17

Bank Karnataka Bank Limited Karur Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank Nainital Bank Ratnakar Bank SBI Commercial and International Bank South Indian Bank Tamilnad Mercantile Bank Ltd. Foreign Banks:Citibank HSBC Standard Chartered Regional Rural Banks:South Malabar Gramin Bank Cooperative Banks:The Andaman and Nicobar State Co-operative Bank Ltd. The Arunachal Pradesh State co-operative Apex Bank Ltd. The Assam Co-operative Apex Bank Ltd The Bihar State Cooperative Bank Ltd. The Chandigarh State Co-operative Bank Ltd. The Delhi State Co-operative Bank Ltd. The Goa State Cooperative Bank Ltd. The Gujarat State Co-operative Bank Ltd. The Haryana State Co-opertive Apex Bank Ltd. The Haryana State Co-opertive Apex Bank Ltd.

INDIAN BANKING TODAY AND TOMORROW: The future of Indian Banking represents a unique mixture of unlimited opportunities amidst insurmountable challenges. On the one hand we see the scenario represented by the rapid process of globalization presently taking shape bringing the community of nations in the world together, transcending geographical boundaries, in the sphere of trade and commerce, and even employment opportunities of individuals. All these indicate newly emerging

18

opportunities for Indian Banking. But on the darker side we see the accumulated morass, brought out by three decades of controlled and regimented management of the banks in the past. It has siphoned profitability of the Government owned banks, accumulated bloated NPA and threatens Capital Adequacy of the Banks and their continued stability. Nationalized banks are heavily over-staffed. The recruitment, training, placement and promotion policies of the banks leave much to be desired. In the nutshell the problem is how to shed the legacies of the past and adapt to the demands of the new age. On the brighter side are the opportunities on account of The advent of economic reforms, the deregulation and opening of the Indian economy to the global market, brings opportunities over a vast and unlimited market to business and industry in our country, which directly brings added opportunities to the banks. The advent of Reforms in the Financial & Banking Sectors (the first phase in the year 1992 to 1995) and the second phase in 1998 heralds a new welcome development to reshape and reorganize banking institutions to look forward to the future with competence and confidence. The complete freeing of Nationalized Banks (the major segment) from administered policies and Government regulation in matters of day to day functioning heralds a new era of selfgovernance and a scope for exercise of self initiative for these banks. There will be no more directed lending, pre-ordered interest rates, or investment guidelines as per dictates of the Government or RBI. Banks are to be managed by themselves, as independent corporate organizations, and not as extensions of government departments. Acceptance of prudential norms with regards to Capital Adequacy, Income Recognition and Provisioning are welcome measures of self regulation intended to fine-tune growth and development of the banks. It introduces a new transparency, and the balance sheets of banks now convey both their strength and weakness. Capital

19

Adequacy and provisioning norms are intended to provide stability to the Banks and protect them in times of crisis. These equally induce a measure of corporate accountability and responsibility for good management on the part of the banks Large scale switching to hi-tech banking by Indian Scheduled Commercial Banks (SCBs) through the application of Information Technology and computerization of banking operations, will revolutionalise customer service. The age-old methods of pen and ink systems are over. Banks now will have more employees available for business development and customer service freed from the needs of book-keeping and for casting or tallying balances, as it was earlier. All these welcome changes towards competitive and constructive banking could not however, deliver quick benefits on account insurmountable carried over problems of the past three decades. The future of Indian Banking is dependent on the success of its efforts as to how it shakes off these accumulated past legacies and carried forward ailments and how it regenerates itself to avail the new vistas of opportunities to be able to turn Indian Banking to International Standards. CURRENT POSITION OF BANKING IN INDIA: Currently, banking in India is generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rateand this has mostly been true.

20

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&as, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

21

COMPANY PROFILE

22

ABOUT THE BANK: Kotak Mahindra is one of India's leading financial conglomerates, 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. HISTORY The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited. This company was promoted by Uday Kotak, Sidney A. A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra Finance Limited.

Since then it's been a steady and confident journey to growth and success. 1986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting 1987 1990 1991 1992 1995 1996 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market The Auto Finance division is started The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate company - Kotak Securities. Investment Banking division incorporated into a separate company - Kotak Mahindra Capital Company 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 Group's entry into information 23

distribution. 1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business. 2000 Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 2003 2004 2005 Matrix sold to Friday Corporation Launches Insurance Services Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. Launches India Growth Fund, a private equity fund. 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 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities.

2006

PRESENT: The group has a net worth of over Rs. 5,824 crore, employs around 20,000 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 370 cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 4.4 million customer accounts.

24

THE CORPORATE IDENTITY:

BOARD OF DIRECTORS:

Dr. Shankar Acharya Non-Executive Part-time Chairman Mr. Uday Kotak Executive Vice-Chairman and Managing Director

Mr. K.M. Gherda Board of the Bank as a Non- Executive Director.

25

Mr. Anand Mahindra Co-Promoter of the Bank

Mr. Cyril Shroff Solicitor, High Court, Mumbai and Advocate on record, Supreme Court of India

Mr. Pradeep N. Kotak Chairman and Managing Director of Kotak Agri International Private Limited

Mr. Shivaji Dam Led the Kotak Group into the life insurance business and Managing Director of Kotak Mahindra Old Mutual Life Insurance Limited

26

Mr. Dipak Gupta Executive Director,

Mr. C. Jayaram Executive Director, in charge of the Wealth Management Business

Mr. Asim Ghosh Additional Director of the Bank

KEY GROUP COMPANIES AND THEIR BUSINESSES: Kotak Mahindra Bank: The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance Ltd which was established in 1985, was converted into a bank- Kotak Mahindra Bank Ltd in March 2003 becoming the first Indian company to convert into a Bank. Its banking operations offer a central platform for customer relationships across the group's various businesses. The bank has presence in Commercial Vehicles, Retail Finance, Corporate Banking, Treasury and Housing Finance. Kotak Mahindra Capital Company:

27

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services. Kotak Securities: Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over the years, Kotak Securities has been one of the leading investment broking houses catering to the needs of both institutional and non-institutional investor categories with presence all over the country through franchisees and coordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on wellresearched expertise and financial products to non-institutional investors. Kotak Mahindra Prime: Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra Primus Limited) has been formed with the objective of financing the retail and wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail finance for both new as well as used cars and wholesale finance to dealers in the automobile trade. KMP continues to be among the leading car finance companies in India. Kotak Mahindra Asset Management Company: Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 16,100 crore and offers schemes catering to en

28

DETAILED STUDY OF COMPANYS SAVINGS ACCOUNTS

29

KOTAKS SAVINGS ACCOUNT: Kotaks Savings Accounts are designed to ensure that the customers receive the benefits of quick & convenient banking transactions along with options for their money to earn high returns. The savings account goes beyond the traditional role of savings, to provide them a range of services from funds transfer options to online payments of bills to attractive returns earned through a comprehensive suite of investment options. They have a number of variants of savings accounts customized to suit individual needs so that they can pick the one that matches their requirements & sit back to enjoy the Kotak experience!

Variants of Saving Account:

Ace Savings Account Pro Savings Account Edge Savings Account Nova Savings Account Classic Savings Account - available only in select locations Easy Savings Account
ACE SAVINGS ACCOUNTS:

Key Features:
Free access at all domestic and international VISA ATMs Free investment account Dedicated relationship manager

Online trading account At-Home services

30

Kotak Mahindra Bank's Ace Savings Account has been designed as a gateway to a world of financial benefits and privileged banking transactions. The account carries benefits ranging from personal investment advisory services to concierge services to free banking transactions.

Pro Saving Accounts:

Key Features: Free ATM access all domestic VISA ATM network Free investment account Quick and easy funds transfer Dedicated relationship manager Kotak Mahindra Banks Pro Savings Account is an account packed with powerful features to provide customers with a superior banking experience at a very comfortable balance requirement. Bank provides relationship manager who will specifically take care of customers banking and investment needs.

Edge Saving Accounts:

Key Features: Wide ATM access Financial payments facilitated through the savings account Quick and easy funds transfer Kotak Mahindra Banks Edge Savings Account is a complete financial package customized to suit your individual banking needs. Our constant Endeavour is to

31

enable regular financial transactions through our online platform so that most of your payments can be made directly through your account or card.

Key Features Greater ATM access through the Kotak Mahindra Bank Debit Card Financial payments facilitated through the savings account Quick and easy funds transfer

Nova Saving Accounts

Kotak Mahindra Banks Nova Savings Account is a complete financial package customized to suit your individual banking needs. Our constant endeavor is to enable regular financial transactions through our online platform so that most of your payments can be made directly through your account or card. Classic Saving Accounts

Key Features Free ATM access all domestic VISA ATM network Free investment account Quick and easy funds transfer Attractive returns Dedicated relationship manager Kotak Mahindra Banks Classic Savings Account is an account packed with powerful features to provide you a superior banking experience at a very comfortable balance

32

requirement. We provide you a relationship manager who will specifically take care of your banking and investment needs. Try the benefits of this account and you will never want to bank elsewhere! Easy Saving Accounts

Key Features Easy to maintain, hassle-free savings avenue

You need an easy to maintain, hassle-free savings avenue for your hard-earned money. We offer you the Kotak Easy Savings Account, armed with 'userfriendly' Convenience Banking facilities. The Kotak Easy Savings Account is a convenient way to make your money work harder.

33

PROJECT

34

PROJECT TITLE: Comparative analysis of savings accounts of different banks

OBJECTIVE OF THE PROJECT: Learning in the classroom is partial unless it is added with practical experience and training. Training is the most important part of learning in any technical and professional education. Exposing the young prospective executive to the actual business industrial environment not only broaden their horizon but also helps them to effectively grasp the various angels of business. That will beneficial for them when they actually come to occupy the execrative position. It is an aim that practical training of small duration obviously had been made valuable and indispensable of the MBA degree. Hence the objective of the project is: To get the practical knowledge about the market research. To find prospective customer for the Kotak Mahindra Bank and to find the product potential in the market. To make customer informative about the technology offered. Study how new distribution channels such as Internet Banking, ATM facility, Phone Banking have changed the face of the Banking industry. To make recommendation and suggestion about the scope and Feasibility for Kotak Mahindra Banks products.

35

OBJECTIVE OF STUDY:

Primary: Analysis and evaluation of customer s satisfaction with respect to product performance. To determine the main characteristic which customers look upon while purchasing and selecting the product? To determine the other brand those are competing with the same product rang. Secondary: Service level and channel associate approach. To find the level of brand awareness. To find out the company market share.

36

Firstly learned about the different types of savings accounts the Bank had and their feature.Then was motivated to introduce the product to the prospects through telle calling and appointments. Then was asked to prepare a questionnaire and conduct a market research for the Banks products ans services.

METHODOLOGY OF THE STUDY: Research Methodology:

DATA COLLECTION: As data is required for any research activity, it is collected by using Both the Primary and Secondary as follows: Primary Data:
I have collected this data through discussion with officers

Secondary Data:
This data is collected from different sources available consolidated From book publication reports, websites where used as a source of secondary data in order to do this project and to collect necessary data. I have used the manuals and leaflets of the bank

SCOPE OF STUDY:

37

 Special area to be focused for increasing the sales and for sales promotion activities to be adopted. To make product more innovative and easy to understand For providing maximum satisfaction to the customer by knowing their needs and requirement about product and services. Steps to be taken at present for survival and facing the competition with other equivalent product. Continues improvement and for better management. Maintaining good relation between manager and customers

38

: DEFINITION OF SAVINGS ACCOUNTS: An account at a bank or other savings institution in which individuals can keep money that is readily accessible, but on which a relatively small interest rate is paid. Banks, credit unions, and savings and loan institutions offer savings accounts. The interest earned on the accounts is taxable.

Interest Paid: Interest on the is determined in accordance with directives of the Reserve Bank of India. Interest is calculated on the minimum credit balance between the close of the business on the 10th. & the last day of each calendar month. Interest is paid on quarterly rests. Eligibility: Individuals Trusts / Societies / Charitable Organization HUFs ( for individuals for the sole purpose of business ) Resident Indians & Foreign Nationals. savings & not for the purpose of

DOCUMENTATION:

Documentation for establishing Proof of Address: Passport (not expired). Permanent driving License (not expired). Telephone bill/ Electricity bill of public and private operators in the state (not older than 3 months from the date of a/c opening). Ration card.

39

: Election card/ voters ID (if it has address). Bank A/c statement of a PSU/Private sector/ foreign bank (not older than 3 months from the date of a/c opening). Letter/Monthly outgoings bill (only from registered societies). Copy of original title deed. Lease/Leave & License agreement / Rent agreement copy duly stamped accompanied by CPV done by branch staff. Latest property tax bill/ property tax paid receipt. Senior Citizen Card issued by the state/ central Govt. of India(if it has address). Mobile Post-paid bill of public/private operators in India. Consumer gas connection card/book. Domicile certificate with communication address issued by Municipal Corporation. Arms License issued by the state/central Govt. of India authority which contains photograph of the applicant. Photo ID card with photograph (issued by J&K & Goat state govt.). Photo Social Security Card issued by the Central/state govt. /Union territories. Pension payment card issued by the state/ central Govt. of India with photograph of the applicant. (Issued by Andhra Pradesh govt.).

40

COMPARISON OF SAVINGS ACCOUNTS OF DIFFERENT BANKS

41

KOTAK MAHINDRA
Saving A/C 1)Edge* 2)pro* 3)Ace*

HDFC
Types of Account 1)Savings Max Account 2) Savings Plus Account 3) Savings Regular Account

ICICI
Average Quarterly Balance Requirement An Average Quarterly Balance of Rs.10, 000/

STANDARD CHARTED
Axcess plus a/c Parivaar a/c Aasaan a/c Super value a/c No frills a/c Demat a/c 2 in 1 a/c Corporate salary a/c

Charges p.a 1) Rs 750/ 2) Rs 750/ 3) Rs 1200/

Average Quarterly Balance Requirement 1) Savings Max Account 25,000 2) Savings Plus Account 10,000 3) Savings Regular Accoun t 5,000

Average 1) Min. Quarterly Rs10000(AQB) Balance, Non Maintenance Charges

a) If AQB in the Savings Account > = Rs.10, 000/ No Charges b) If AQB in the Savings Account < = Rs.10, 000 750/per quarter c) Debit Card Charges Rs. 99/yearly d) If the amount is transfer from other state like we open our account in Dehli

42

Branch and someone is transfer money from M.P. or other state Per transaction charges 1,000 Rs.5

a) Savings Max Account

Debit card free

Rs. 99/ p.a

Debit cards Rs 200

43

:
Average Quarterly Balance Requirement An Average Quarterly Balance of Rs.25, 000/ FREE OF COST A Fixed Deposit for Rs. 1, 00,000/ linked to a Zero Bala nce Savings Account CHEQUE BOOK : FREE OF COST Stop payment Single cheque: Rs 100 Multiple

or

44

b) Savings Plus Account

Check book Rs.2/- leaf

Average Quarterly Balance Requirement An Average Quarterly Balance of Rs.10, 000/ Or A Fixed Deposit for Rs.50,000/linked to a Zero Balance Savings Account Average Quarterly Balance Non maintenance Charges a) If AQB in the Savings Account>=Rs.10, 000/ Or FD balance>=Rs. 50,000/ No charges b) If the FD balance<Rs. 50,000/and The AQB in the savings Account: c) If the balance is between Rs. 5,000/ and Rs. 10,000 / Rs. 750/ per quarter d) If the balance is <Rs. 5,000/ Rs. 1,000/ per quarter Features a) Free transactions on SBI/Andhra Bank ATMs per month. b) 3 free transactions on any other bank ATMs per month. c) Free payableat per cheque book without any usage charge up to a limit month.

45

:
d) Free international debit card for all account holders , for life e) Free demand draft on HDFC Bank locations, up to a limit of Rs.25, 000/ per day. f) Free bill pay and insta Alert. g) 25% off on the locker rental for the 1st year.

Cash delivery Free 1 per day

c) Savings Regular Account

Account closure (within 6 mont hs from the date of opening) Rs 50 0

Monthly free

Average Quarterly Balance Requirement An Average Quarterly Balance of Rs.5, 000/at urban bank branches and Rs.2, 500/ at rural bank branches. Or A Fixed Deposit for Rs. 50,000/ linked to a Zero Balance Savings Account. Average Quarterly Balance Non maintenance Charges Rs.750/ per quarter If the AQB is below Rs. 5000/ at urban bank bran ches

Duplicate account statements: Up to 3 months old Rs 100 More than 3 months Rs 150

46

47

:
Special charges Cheques: Deposit &returned local Rs 300. Deposit &returned out Rs 300. Stop payment Rs 100. Demand draft: Cancellation Rs 100. TOD chargesRps.250/ Demand draft cancellation Rs 250

ATM charges: Partner free VISA ATM domestic Rs. 50 VISA ATM cash withdraw international Rs.90

Payment order issue Rs 75

OTHERS: At home charges Registration fee Rs 200 p.a Certificate issuance current year bal & int. free previous y ear bal.& int. Rs 100. TDS issuance free. Duplicate issuance Rps.100. Account maintenance free. Balance conformation free OTHER Features a) Freedom account b) Debit card which can be used any ware c) Phone Banking d) Internet Banking

Payment order cancellation Rs 250

48

: DATA ANALYSIS: Introduction: Data analysis and interpretation plays an important role in turning quantity of paper into defensible, actionable sets of conclusions and reports. It is actually a set of method and technique that can be used to obtain information and insights from data. It can lead the researcher to information and insights that would not be available. It can help to avoid erroneous judgments and conclusion. It can provide a background to help interpret and understand analysis conducted by others. Knowledge of power of data analysis techniques can constructively influence research objectives and research design.

DATA TABLE NO 1 MARKET COVERAGE OF THE COMPETITIVE BANKS INCLUDING KOTAK MAHINDRA BANK LTD:

BANK NAME HDFC ICICI Kotak Mahindra bank CO-OPERATIVES OTHERS POTENTIAL MARKET TOTAL

NO OF RESPONDENTS 22 25 14 9 8 22 100

PERCENTAGE RESPONDENTS 22% 25% 14% 9% 8% 22% 100%

OF

ICICI Bank Ltd scores top position in market coverage of Saving account in Kota Region. HDFC Bank gets a second position. KOTAK MAHINDRA BANK takes the third position.The amount of potential market is as high as 22%

GRAPH NO 1 MARKET COVERAGE OF THE COMPETITIVE BANKS

49

NO OF RESPONDENTS

POTENTIAL MARKET 22% KOTAK MAHINDRA OTHERS 8% UTI 14% KOTAK MAHINDRA BANK 9%

HDFC 22%

HD

ICI

UT ICICI 25%

TS A SATISFIEird position

OT

PO

TABLE NO 2

MARKET POTENTIAL FOR VARIOUS SAVING ACCOUNT

Pro Savings Accounts Edge Savings Account Ace Savings Account Nova Savings Account & Easy Savings Account
Total

No of Companies 42 20 13 25

Percentage of companies 42% 20% 13% 25%

100

100%

50

45 40 35 30 25 20 15 10 5 0

42 25 13 42% 20% 13% 25%

No of Companies Percentage of companies

20

P SA RO VI N G

INTERPRETATION Out of the all type of saving accounts market potential of saving Regular Account is 42% which is highest .Second highest market potential is for Kids Advantage Account is 25%.

TABLE NO 3 CUSTOMERS SELECTION PARAMETERS OF HDFC BANK LTD PARAMETERS OF BANK PERCENTAGE SELECTION BRAND NAME PERVIOUS EXPERIENCE RELIABILITY EASY ACCESS BANKING HOURS CUSTOMER CHOICE 23.60% 22.40% 22.10% 19.80% 14.10% OF

A SA CE VI N G

EDGE SAVING

51

120 100 80 60 40 20 0
KO K TA MA DR HN A O TH ER S
IC IC I H D FC U TI

4 7 5 9

4 3 5 8

8 12 4 6

13

11 10 UNSATISFACTIORY SATISFACTORY FAIR GOOD EXCELLENT

31

27

75

80

70

30 11 15

19

33

INTERPRETATION ATM Network of ICICI Bank is rated excellent (80%). Followed by HDFC Bank (75%). UTI Bank gets third position. (70%) KOTAK MAHINDRA Banks are rated as fair by 30% of the respondents and satisfactory by 31% of the respondents. Other Banks are rated as excellent by 33% of the respondents and fair by 27% of the respondents.

52

:
TABLE NO 12 Strengthens and weakness of KOTAK MAHINDRA BANK Score Card Parameters Regulatory System Technology Advancements Credit Quality Diversification of market beyond big cities Size of Bank Banking Infrastructure Labor Inflexibilities 5 4 3 Score 5 6 5 4

INTERPRETATION

53

:
The Indian banking sector has scored over its counterparts not only in developing but also even in developed world such as Japan, Singapore and Australia on significant parameters. Technology has given birth to a new era in banking. Technology can be the key differentiator between two banks and a major factor to attain competitive edge. Though slow in the beginning, KOTAK MAHINDRA Bank seem to have paced up in adoption of advanced technology. While enhancement of credit is an important function of the Banks, it is equally imperative to

keep a check on the quality of credit to ensure good health of the banking system and effective functioning of market for distressed assets.

One of the key fundamentals of banking sector Credit Quality too has been rated fairly well in comparison with other Banks. Even though KOTAK MAHINDRA Bank is a big player in Indian Banking sector still it is not yet penetrated in the rural areas of India to a very great extend. KOTAK MAHINDRA Bank as earlier said is a large player in the Indian Banking Sector, however when it comes to banking infrastructure it is one of its weak. And so labour inflexibilities.

54

RECOMMENDATIONS

55

Since ATM is the most popular point of interaction with the Bank it is imperative that the Bank increases the number of ATM machines. KOTAK MAHINDRA BANK must enter into alliances with other Banks. So that its customers can use those Banks ATM facility free of any charge. The Bank should take advantage of its world wide network of ATM machines, as more and more Indians are travelling abroad. The advantages of being able to access ones account anywhere in the world must be highlight. The Bank should reduce the transaction cost of non- Kotak ATM machine. Account holders feel that it would be good if the Bank satisfied with the Bank. Happy hours should be introduced. Bank timing should be increase. Animated movies should be make for promoting various products of Bank in local language and according to culture. Touch screen facility can helpful to provide detail knowledge of various products and it can save manual time. More branches should be open at nearby towns so that customer fell convenience. Account opening processing time should be decrease and cash account opening facility should introduce so that customer would not feel any problem. offered incentives, Mahindra bank

freebies to its existing customers , this would keep the customers happy and

56

LIMITATIONS

57

Bank timing is short (9:30 am to 3:30pm). No. of ATMs less according to population. Customer have threat that bank have hidden charges. Low income class people face difficulty to maintain AQB. Customers not use frequently Net banking, Mobile banking. The study was limited only JAIPUR city other part of country. Many times respondents were so busy that they didnt t give reply. There were biased replies also. Hence findings may be differ from

58

QUESTIONAIRE

59

1. Person Name: ____________________________________________ 2.Types of business or Working area A) Electric and Electronics B) Information Technology C) Automobile D) Pharmaceutical E) Infrastructure F) Telecommunication g) Others: please specify __________________________________ 3. No.of Person in family: _____________________________________________ 4. Designation: ________ _______________________________________ 5. Contact Number: ____________________________________________ 6. e- Mail id: _________________________________________________ 7. No. of Depended and their age: __________________________________________ 8. Current Banker: _____________________________________________

60

:
9. Total annual income of person: _________________________________________________________ 10. Special offer provided from existing bank: a) P.L. Rate: __________________________________________ b) H.L Rate: __________________________________________ c) Vehicle loan Rate: ___________________________________ d) Others: ____________________________________________

11. Are you satisfied with existing Banker? a) Yes b) No

12. Do you expect better products and services from your banker? a) Yes b) No

13. How is the Relationship between you & your Bank? a) Excellent b) Good c) Satisfactory d) Unsatisfactory 14. Did you change your banker recently? A) Yes b) No

15. If yes: From - ____________________________________________ To - ____________________________________________ 16. How is Customer Responsiveness of your Bank? a) Good b) Satisfactory C) Unsatisfactory

61

:
17. Would you like to shift to other Bank, if provided better product &Services? a) Yes b) No

18. Given options, which Bank, you would like to shift? Please mention: ___________________________________________ Date Place Thank you Signature

CONCLUSIONS

62

KOTAK MAHINDRA BANK is Leading Bank in the country, it provides a variety of products and services to different segments of customers. The Bank aims to serve customers from teenagers to senior citizens, hence different products designed to suit specific requirements of the above. Aims to serve all classes of the society from the salaried middle class to the high income business class. Customers are categorized and segmented according to their requirements and needs. For Example , the Saving Regular and Plus Account aims to serve middle class customers so minimum balance required to be maintained is RS.5,000/- or RS. 10000. While the Saving Max Account is targeted at high income customers, the minimum balance requirement is RS.25,000.

63

: Customers who are more profitable to the Bank (High Value Customers) are provided special facilities. Priority Banking is meant to serve these high value customers. The Bank prides itself with the ability to provide differentiate products in the crowed market of saving accounts. Bank offers free insurance, special cobranded debit cards which makes its product unique. The Credit/Debit Cards provided by the Bank are Internationally Accepted around the world, Hence giving the customers the convenience to transact anytime , anywhere. The Bank has tied up with other Banks so that its customers can use other Banks ATM facility for free (four free transactions) The Bank also provides DEMAT account and also sells Mutual Funds, this provides the Bank and Government additional revenue. The Bank has been very successful in enlarging its customer base during the last couple of years. The Bank wants its customers to transact more trough Internet Banking and ATMs, rather than the customers using the branch.

64

BIBLIOGRAPHY

www.hdcbank.com www.axisbank.com www.icicibank.com www.kotak.com www.wikipedia.com www.google.com

65