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INSTITUTE OF MANAGEMENT STUDIES
DAVV, INDORE(M.P)
Session (2010-12)
MAJOR RESEARCH PROJECT
ON
“Customer Retention Strategy of Kotak Mahindra Bank, Indore”
A Dissertation Submitted in Partial Fulfillment of the Requirement for the award of Degree of MBA
Guided by: Submitted by:Dr. P.N. Mishra Abhishek Tiwari
MBA FULL TIME
1
ACKNOWLEDGEMENT
I am thankful to Dr. Rajendra Singh, Director Institute Of Management Studies IMS (DAVV)
Indorefor providing me the opportunity to carry out the research on “Customer Retention
Strategy Of Kotak Mahindra Bank, Indore.”
I express my deepest and most sincere thanks to my mentor Dr. P.N. Mishra of Institute of
Management Studies IMS (DAVV), Indore for providing the guidance and helping me in
conducting the research.
The project would not have completed without the hearty support and guidance of Mr.
Shafeequddin Khan, Relationship Manager Kotak Mahindra Bank, Indore.
I also take this opportunity to thank all the employees and customers of Kotak Mahindra Bank,
Indore, without their Co-operation the project would have not been completed.
Abhishek Tiwari
Institute Of Management Studies, Indore
2
DECLARATION
I hereby declare that the research entitled “Customer Retention Strategy Of Kotak Mahindra
Bank, Indore” is the result of my sincere effort. This major research project report is being
submitted by me alone, at Institute of Management Studies, Indore, for the partial fulfillment of
the course MBA (FULL TIME) and the report has not been submitted to any other educational
institution for any other purpose.
Date:
Signature:
3
CERTIFICATE
This is to certify that Mr. Abhishek Tiwari, student of MBA (Full Time) program of Institute Of
Management, Indore has completed his major research project on “Customer Retention
Strategy Of Kotak Mahindra Bank, Indore.” and prepared this report under my guidance.
Dr. P.N. Mishra
(Faculty Guide)
4
INDEX
S.NO CONTENTS PAGE NUMBER
EXECUTIVE SUMMARY
6-7
1. INTRODUCTION 8-13
2. LITERATURE REVIEW 14-16
3. RESEARCH METHODOLOGY 17-18
4. COMPANY PROFILE 19-52
5. DATA ANALYSIS, RESULTS AND
FINDINGS
53-81
6. CONCLUSION AND
RECOMMENDATIONS
82-84
7. LIMITATIONS AND SAMPLE
QUESTIONNAIRE
85-90
8. REFERENCES AND BIBLIOGRAPHY 91-93
5
EXECUTIVE SUMMARY
The p ro j ec t i s ba sed on t he Cus tomer Re t en t i on S t r a t egy o f Bank ing
Organ i za t i ons w i th spec i a l r e f e r ence t o KOTAK MAHINDRA BANK
and t he cus tomer s ’ a s we l l a s emp loyees ’ pe r cep t i on abou t t he s ame .
Fi r s t and Fo remos t , t he pu rpose o f KOTAK MAHINDRA BANK i s
t o fu l f i l l t he needs fo r i nves tmen t unde r one roo f w i th an equa l
b l end o f S t anda rd i za t i on a long w i th Cus tomiza t i on .
Thi s p ro j ec t shows t he impor t ance o f cus tomer r e t en t i on a s a
s t r a t egy fo r t he succe s s o f a bank ing o rgan i za t i on .
I t g i ve s t he de t a i l v i ew o f t he va r i ous pa r ame te r s t ha t a bank
shou ld keep unde r cons ide ra t i on i n o rde r t o ensu re cus tomer
r e t en t i on .
The focus i s on t he f a c t t ha t en su r ing max imum cus tomer
s a t i s f ac t i on and ea rn ing t he i r l oya l t y i s t he key t o succe s s i n t he
h igh ly compe t i t i ve bank ing i ndus t ry .
The p ro j ec t dep i c t ed t he impor t ance o f va r i ous pa r ame te r s and
a l so t r i ed t o f i l l t he knowledge gap r ega rd ing t he f a c to r s t ha t
en su re be t t e r s e rv i ce qua l i t y and cus tomer l oya l t y .
The p ro j ec t a l so emphas i zed t he impor t ance o f an emp loyee -
cus tomer pa r t i c i pa to ry p roce s s w i th cus tomer s a t i s f ac t i on a s a
pe r fo rmance eva lua t i on c r i t e r i on fo r an emp loyee o f t he
o rgan i za t i on .
The p ro j ec t c l e a r l y dep i c t s t ha t t he cus tomer s a t i s f ac t i on l eve l o f
Ko tak Mah ind ra Bank i s qu i t e impre s s ive and hence i t ha s been
ab l e t o en joy l i f e t ime member sh ip o f i t s ex i s t i ng member s and
hence i s hav ing a c l e a r cu t compe t i t i ve advan t age o f cus tomer
l oya l t y ove r i t s compe t i t o r s wh ich i s t he ma in d r i ve r f o r i t s huge
succe s s s t o ry on ly i n a pe r i od o f 8 yea r s o f i t s i ncep t i on .
6
Fur the r t o t h i s , p ro j ec t p roceeds w i th t he r e sea r ch de s igned i n t he l i gh t
o f t he co re ob j ec t i ve s o f t he s t udy a long w i th t he sub ob j ec t i ve s t ha t
a r e g iven due cons ide ra t i on t h roughou t t he r e sea r ch . I t a l so en l i s t s a l l
t he da t a sou rce s a s t o by wh ich means t he s t udy ha s ga ined momen tum.
The da t a ha s been co l l e c t ed by v i r t ue o f ques t i onna i r e s and webs i t e s ,
r e spec t i ve ly . The s cope o f t he s t udy i s sugges t ed i n f avo r o f t he
compan i e s s t r i v ing t o emerge a s supe r power d r awn ou t by t he su rvey .
Hence , t he company can f i ne t une i t s p ro spec t i ve s t r a t egy o f cus tomer
r e t en t i on and can g r ab t he oppo r tun i t i e s o f t r ans fo rming t he weaknes s
o f o the r i n to i t s own s t r eng th .
7
CHAPTER 1
INTRODUCTION
8
INTRODUCTION
“CUSTOMER RETENTION STRATEGY OF KOTAK MAHINDRA BANK,
INDORE”
In this study, I have conducted a research on the customer satisfaction level of Kotak Mahindra
Bank through a descriptive study conducted in the Indore branch of Kotak Mahindra Bank. A
structured questionnaire is used to generate the feedback from the customers, employees and
other marketing intermediaries. On the analysis of this structured questionnaire, i am able to
draw a conclusion regarding the customer retention strategy and its effectiveness in creating and
sustaining customer satisfaction by Kotak Mahindra Bank.
MOTIVATION FOR THE TOPIC:In the present scenario, banking sector in India is
emerging as the most developing sector of the economy with all the Multinational banks entering
the country. Hence, being a prospective manager with my field of interest in the banking industry
and the tremendous growth potential in the banking industry of our country, I got motivated to
work on a topic that can result into an effective learning of this country. The main motivation for
the topic lies in the fact that:-
9
The banking industry is highly competitive, with banks not only competing among each other
but also with non-banking and other financial institutions. Most bank product developments are
easy to duplicate and when banks provide nearly identical services, they can only distinguish
themselves on the basis of price and quality. Therefore, customer retention is potentially an
effective tool that banks can use to gain a strategic advantage and survive in today’s ever-
increasing banking competitive environment.
EXPLAINATION OF CONCEPTS ENTAILED: -The main concept entailed in our
study is that customer retention is more profitable strategy rather than new customer acquisition.
It is more economical to keep existing customers than to acquire new ones. The cost of acquiring
customers to “replace” those who have been lost are high. This is because the expense of
acquiring customers is incurred only in the beginning stages of the customer relationship.
In addition, longer term customers buy more and, if satisfied, may generate positive word of
mouth promotion for the company. Additionally, long term customers also take less of the
company time and are less sensitive to price changes.
Customer retention refers to keeping a client’s business rather than have the client use
competitor’s services or products. Business want to reduce customer defections to their
competitors because a reduction in their market share and profits could result. Customer service
retention is a popular marketing strategy as it involves focusing on meeting or exceeding client’s
expectations in order to maintain their loyalty.
When people feel loyal to a certain brand or business, they are less likely to be persuaded by a
competitor’s ads and offers. Maintaining customer retention through loyalty programs is a
method commonly used by many businesses today.
The structured questionnaire is prepared on the basis of the concept given by Parasuraman.
10
BRIEF HISTORY REGARDING THE TOPIC: - Previous studies have identified
the benefits that customer retention delivers to an organization (Colgate et.al, 1996; Reicheld and
Sasser, 1990; Storbacka et.al; 1994)
For Example: - The longer a customer stays with an organization, the more utility the customer
generates (Reichheld and Sasser, 1990). This is an outcome of a number of factors relating to the
time the customer spends with the organization. These include the higher initial costs of
introducing and attracting a new customer, increases in both the value and number of purchases,
the customer’s better understanding of the organization, and positive word of mouth promotion.
Apart from the benefits that the longevity of customers bring, research findings also suggest that
the costs of customer retention activities are less than acquiring new customers. For Example,
Rust and Zahorik (1993) argue the financial implications of attracting new customers may be
five times as costly as keeping existing customers. Customer satisfaction leads to customer
retention. As a consequence, retaining customer becomes a priority.
In the banking industry, many banks are providing more or less the identical products for nearly
the same price. Unless a bank can extend its product quality beyond the core service with a
additional and potential service features and value, it is unlikely to gain a sustainable competitive
advantage (Chang, Chan, and Leck, 1997)
11
MY MOTIVATION FOR THE TOPIC: -I have chosen this topic as a dissertation for
Major Research Project because of my interest in the banking industry and the realization of the
importance of customer retention as a strategy in a banking industry. I got motivated to choose
Kotak Mahindra Bank for the study because of the tremendous and substantial growth of Kotak
Mahindra Bank since its inception in 2003. Kotak Mahindra Bank has emerged as one of the
fastest growing bank and among the most admired financial institutions in India. The major
strategy implemented by Kotak Mahindra Bank down the years have been customer retention
and hence the customers appreciate the services and products offered by the bank and are willing
to recommend the bank to their acquaintances. Hence, through this study, with the help of the
success story of Kotak Mahindra Bank, I would like to signify the importance of customer
retention as a strategy in case of banking institutions.
12
OBJECTIVES OF THE STUDY:-
PRIMARY OBJECTIVE: To analyze the Customer Retention Strategy of Kotak Mahindra
Bank.
SECONDARY OBJECTIVES:
1. To analyze the customer’s attitude and satisfaction level towards Kotak Mahindra Bank.
2. To identify the needs of customers for customer- bank relationship improvement.
3. To know the preferences and problems of customers of the bank.
4. To ensure the satisfaction level of services provided by the bank.
5. To get the views about the changing customer needs.
13
CHAPTER 2
LITERATURE SURVEY
14
LITERATURE SURVEY:Previous studies have identified the benefits that customer
retention delivers to an organization (Colgate et. al, 1996; Reichheld and Sasser, 1990;Storbacka
et. al, 1994)
The longer a customer stays with an organization, the more utility the customer generates
(Reichheld and Sasser, 1990). This is an outcome of a number of factors relating to the time the
customer spends with the organization. These include the higher initial costs of introducing and
attracting a new customer, increases in both the value and number of purchases, the customer’s
better understanding of the organization, and positive word of mouth promotion.
Apart from the benefits that the longevity of customers brings, research findings also suggest that
the costs of customer retention activities are less than acquiring new customers.
For Example, Rust and Zahorik (1993) argue the financial implications of attracting new
customers may be five times as costly as keeping the existing customers. Customer satisfaction
leads to customer retention. As a consequence, retaining customers becomes a priority. Previous
research shows, however, that longevity does not automatically leads to profitability (Colgate,
Stewart, and Kinsella, 1996).
In a highly competitive market, the shortest route to differentiation is through the development of
brands and active promotion to both intermediaries and final consumers (Parasuraman, 1997). In
the long run, however, branding, targeting, and positioning would all be much more effective if
the supplier had some tangible advantage to offer to consumers (Baker, 1993). This is evident in
the banking industry, where many banks are providing more or less the identical products for the
same price.
Unless a bank can extend its product quality beyond the core service with additional and
potential service features and value, it is unlikely to gain a sustainable competitive advantage
(Chang, Chan and Leck, 1997). Thus, the most likely way to both retain customers and improve
profitability is by adding value via a strategy of differentiation (Baker, 1993) while increasing
margins through higher prices. In businesses, where the underlying products have become
commodity-like, quality of service depends heavily on the quality of its personnel. This is well
documented in a study by Leeds (1992), who documented that approximately 40 percent of
customers switched banks because of what they considered to be poor service. Leeds further
argued that nearly three- fourth of the banking customers mentioned tellers’ courtesy as a prime
15
consideration in choosing a bank. The study also showed that increased use of service quality
and professional behaviors (such as formal greetings) improved customer satisfaction and
reduced customer attrition.
Although a huge amount of work has been done in the field of depicting the importance
of customer retention as one of the most important strategy in case of organizations especially
service institutions like banks, and a lot of research has been conducted to find out that service
quality and professional behavior at the work place are the two most critical elements in ensuring
customer satisfaction and as a result customer retention, but still there is a knowledge gap about
the important parameters that can result into enhancing both the service quality as well as
professional behavior at work place in order to ensure customer retention for a banking
organization.
Hence, I have carried out this research with a motive of filling this knowledge gap by identifying
the key parameters that influences the service quality and professional behavior of the employees
by conducting a study on such 19 possible parameters and then analyzing the impact and its
extent of these parameters in enhancing the customer retention of Kotak Mahindra Bank.
16
CHAPTER – 3
RESEARCH METHODOLOGY
17
RESEARCH METHODOLOGY
A. Research type
Descriptive - Descriptive research, also known as statistical research, describes data and
characteristics about the population or phenomenon being studied. Descriptive research answers
the questions who, what, where, when andhow?
Collection of data – Primary data.
Data Collection Tool – I have used a Non Disguised structured questionnaire based on
the concept of Parasuraman in order to collect the data from the respondents.
Sample size - I have calculated the sample size using the formula of:
Sample Size = (k2C2)/r2, where k = 19/20 i.e., 1 approximately, c = coefficient of variation
and r = percentage of variation which we allow to be permitted. I have taken r = 5%.
Hence, our Sample size on calculation comes out to be 70.
B. Population : As I am conducting the survey on the customers, employees, marketing
intermediaries of Kotak Mahindra Bank, Indore, hence, all these together constitutes the
population for my research.
Sources of secondary data .Internet.
C. Tools for data analysis : I have used SPSS 16 Software as a tool for data analysis under
which I have analyzed the data using:
Pie chart: For the analysis of demographic variables especially.
Chi- square test: For the analysis of other non- parametric variables
18
CHAPTER 4
COMPANY PROFILE
19
INTRODUCTIO N
“Think Investment Think Kotak”
Banks like Kotak Mahindra, standard chartered, ICICI, HDFC, and Citibank now bring your
Bank Account and Debit card to your fingertips. With Mobile commerce, you can perform a
wide range of query-based transactions from your Mobile Phone, without even making a call.
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.1, 800 crore and employs over 4,400 employees in its
various businesses. With a presence in 82 cities in India and offices in New York, London,
Dubai and Mauritius, it services a customer base of over 5, 00,000.
Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest
investment banks and brokerage firms) and Old Mutual (a large insurance, banking and asset
management conglomerate).
The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited.
This company was promoted by Uday Kotak, Sidney 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.
20
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’s
largest financial retail marketing networks
1992 : 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 -
Kotak Mahindra Capital Company
1996 : The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak
Mahindra Limited, forfinancing Ford vehicles. The launch of Matrix Information
Services Limited marks the Group’s entry into information distribution.
1998 : Enters the mutual fund market with the launch of Kotak Mahindra Asset
Management Company.
2000 : Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.
Kotak Securities launches kotakstreet.com - its on-line broking site. Formal
21
commencement of private equity activity through setting up of Kotak Mahindra Venture
Capital Fund.
2003 : Kotak Mahindra Finance Ltd. Converts to bank
22
COMPANY’S PROFILE
Established in 1984, The Kotak Mahindra Group has long been one of India’s most reputed
financial organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the group’s flagship
company was given the license to carry on banking business by the Reserve Bank of India
(RBI).This approval creates banking history since Kotak Mahindra Finance Ltd is the first
company in India to convert to a bank. The license authorizing the bank to carry on banking
business has been obtained from the RBI in tune with Section 22 of the Banking Regulation Act
1949.
KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney
&A.A.Pinto under the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and
obtained a Certificate of Commencement of Business on 11th Feb 1986.
The bank customers have access to entire VISA network of 4500 ATM’S in India and
800000ATM’S worldwide accepted in more than 56000 establishments across India and 10
million worldwide. The customer also has access to over 800 ATM’s with sharing arrangements
with UTI BANK, of these 125 are in the NCR.
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
23
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 and offline services based on well-researched 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 20,800 crore and offers schemes catering to investors with varying risk-return profiles. It was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities.
Kotak Mahindra Old Mutual Life Insurance Limited
Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps customers to take important financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially independent.
24
BOARD OF DIRECTORS
Mr. K.M.Gherda – Executive Chairman
Mr. Uday Kotak –Executive Vice Chairman and Managing Director
Mr. Anand Mahindra –Co Promoter of Kotak Mahindra Bank andVice Chairman and Managing Director of Mahindra and Mahindra
Mr. Cyril Shroff –Co Promoter
Mr. Pradeep N Kotak –Agri Division of Kotak and Company Limited
Dr. ShankerAcharya
Mr. Shivaji Dam –Managing Director Kotak Mahindra Old Mutual Life Insurance Limited
Mr. C.Jayaram –Executive Director
Mr. Dipak Gupta –Executive Director
Product Detail
25
Kotak Mah ind ra Bank i s one o f t he p rominen t subs id i a r i e s o f Ko tak
Mah ind ra g roup . The ac t i v i t i e s o f t he company be ing pa ra l l e l t o i t s
ob j ec t i ve a r e ve ry w ide and cove r a l l t he componen t s o f a Bank . The
Bas i c a r ea o f Ope ra t i ons i s t he Bank ing bus ine s s , o the r p roduc t s a r e
mean t f o r t he r egu l a r r evenue gene ra t i on . Be ing a Bank ing house , t he
company i s i n r egu l a r t ouch w i th Banking Account s , Inves tment
Serv i ce s , Conven ience Bank ing and Other Serv i ce s .
They offer complete solutions that address all your financial requirements, whether you're an
individual or a firm. From everyday banking to long term investments — their offering covers it
all. This wide range of products is delivered to you with a genuine understanding of your specific
need and warm, personalised service.
Kotak Mahindra Bank, it's not about selling you many different products — it's about working
out a holistic, pragmatic solution that addresses your financial needs. Through their varied
products,they commit themselves to becoming “banker” to the customer rather than being “asset
financier” to our customers.
Banking Account s
There are three types of banking account:
26
Savings Account
Current Account
Term Deposit
SAVINGS ACCOUNT
“Choose from our range of Savings Accounts”
KOTAK MAHINDRA has got a variety of options of savings accounts to choose from for its
customers according to their convenience and requirements .These savings accounts offer
attractive returns along with personalized banking services at three convenient average quarterly
balances(AQB)levels of Rs. 10000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 20000
(KOTAK PRO SAVINGS ACCOUNT) and at Rs75000(KOTAK ACE SAVINGS
ACCOUNT).The average quarterly balance levels as well the corresponding services and
benefits try to ensure the various customer needs and requirements.
Thus the three account opening options in savings account are as mentioned above:
EDGE SAVINGS ACCOUNT: Kotak Mahindra Bank´s Edge Savings Account is a
complete financial package customized to suit individual banking needs. Its constant
endeavour is to enable regular financial transactions through online platform so that most
of payments can be made directly through your account or card.
Features & Benefits
Wide ATM access through the Kotak Mahindra Bank Debit Card
One can walk into any KOTAK or HDFC Bank ATMs to withdraw cash or enquire balance at no
extra charge!
Multiple Access Channels Access
27
An account through phone, mobile phone or internet to get information about account balance or
track transactions. One can even transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account
Use the free Payment Gateway to make online payments for utility bills, credit cards, online
trading of shares or even online shopping.
Quick and easy funds transfer
Quick funds transfer to a third party account with another Bank is available across 15 locations
through Net Banking. Also get a multi-city cheque book so that money from account is received
by the beneficiary in the fastest possible time.
Free investment account
One can open an investment account, and use the Net Banking facility to purchase/redeem
mutual funds online while directly debiting / crediting your Bank Account. Besides this you get a
consolidated view of all your mutual fund investments across schemes with updated returns
status, latest NAV information and research reports.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically
sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term
Deposits sweep back into your account to meet fund requirements when your withdrawals
exceed the balance available in your account, thereby providing you maximum liquidity.
PRO SAVINGS ACCOUNT:
28
Kotak Mahindra Bank´s Pro Savings Account is an account packed with powerful features to
provide a superior banking experience at a very comfortable balance requirement. They provide
a relationship manager who will specifically take care of banking and investment needs.
Features & Benefits
Free ATM access all domestic VISA ATM network
Walk into any VISA ATM in India to check balance or withdraw cash absolutely free. no longer
have to worry about locating your Bank or Partner Bank ATM – Use the first VISA ATM that
you spot, for cash withdrawal or balance enquiry transactions.
Multiple access channels
Access your account through phone, mobile phone or internet to get information on your account
balance or track your transactions. You can even transfer funds through Phone Banking or Net
Banking.
Free investment account
One can open an investment account, and use the Net Banking facility to purchase/redeem
mutual funds online while directly debiting / crediting bank account. Besides this get a
consolidated view of all the mutual fund investments across schemes with updated returns status,
latest NAV information and research reports.
Financial payments facilitated through the savings account
Use our free Payment Gateway to make online payments for utility bills, credit cards, online
trading of shares or even online shopping.
29
Quick and easy funds transfer
Quick funds transfer to a third party account with another Bank is available across 15 locations
through Net Banking. Also get a multi-city cheque book so that money from account is received
by the beneficiary in the fastest possible time
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically
sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term
Deposits sweep back into your account to meet fund requirements when your withdrawals
exceed the balance available in your account, thereby providing you maximum liquidity.
Dedicated relationship manager
You get a one point contact for all your banking related queries and transactions. Your
relationship manager will also help you with financial planning and sound investment decisions.
Free banking transactions
You can issue demand drafts or send cheques for collection on branch locations without any
charge to your account.
ACE SAVINGS ACOUNT:
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. Onewill
find that this package of services and privileges is unmatched by any other savings account in the
market.
Features & Benefits
Free access at all domestic and international VISA ATMs
No longer have to worry about locating your Bank or Partner Bank ATM - Use the first VISA
ATM that you spot, for free cash withdrawal or balance enquiry transactions. So walk into any
VISA ATM in India or abroad to withdraw cash or for balance enquiry.
Multiple access channels
Access the account anytime through land line, mobile phone or internet to get information on
account balance or track transactions. One can even transfer funds through Phone Banking or
Net Banking.
Financial payments facilitated through the savings account
Use the free Kotak Payment Gateway to make online payments for utility bills, credit cards,
online trading of shares or even online shopping. All this at the click of a mouse!
Quick and easy funds transfer
Transfer funds easily and with speed, to a beneficiary account at another bank. One can avail of
this facility by walking into any of branches or by simple logging on to Net Banking. Also get a
free multi-city cheque book so that money from your account is transferred to the beneficiary's
account at any of branch locations, in the fastest possible time.
31
Free banking transactions
One can issue demand drafts or send cheques for collection at all branches for no extra charge.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility that automatically
sweeps out idle funds, above a threshold, from your account into Term Deposits. These Term
Deposits sweep back into account to meet fund requirements when withdrawals exceed the
balance available in the account, thereby providing maximum liquidity.
CURRENT ACCOUNT
Kotak Mahindra Bank offers unparalleled advantages with its three Current Account offerings.
Whether small/ mid size business or an enterprise spread across multiple locations in the country,
would find a Current Account that's just designed for you. These Current accounts offer
attractive returns along with personalized banking services at three convenient average quarterly
balances(AQB)levels of Rs. 25000 (KOTAK EDGE SAVINGS ACCOUNT),Rs. 50000
(KOTAK PRO SAVINGS ACCOUNT) and at Rs250000(KOTAK ACE SAVINGS
ACCOUNT).The average quarterly balance levels as well the corresponding services and
benefits try to ensure the various customer needs and requirements. With features ranging from
Free DDs, Free Cheque Collection, Free At -Par Cheque facility to Free Trading Account & free
Demat Account, and more!
Thus the three account opening options in savings account are as mentioned above:
32
Edge Current Account
In need of a well equipped bank account to keep pace in all the business endeavors. They offer
the Kotak Edge Current Account, armed with Kotak 2-Way Sweep and the entire gamut of
Banking Privileges, providing that extra edge to get ahead. The feature rich Kotak Edge Current
Account is the ideal way to make money work harder.
Features & Benefits
Multi City Banking
Current account/s with Kotak Mahindra Bank will be recognized in every other branch. One can
just walk into a Kotak Mahindra Bank branch in any of our branches across country to satisfy all
the banking needs.
2 - Way Sweep* : Term Deposit linked Current Account
Kotak 2-Way Sweep ensures that money never stops working for you. Daily balances, above a
threshold level, in Current Account are automatically swept out into Term Deposits (TD). This
'swept out amount' is brought back into account to meet fund requirements when withdrawals
exceed the balance available in the account (or when the account balance goes below the
specified threshold level.) With Kotak 2-Way Sweep you enjoy the twin advantages of attractive
returns & maximum liquidity.
Free Demand Drafts and Pay Orders
Enjoy the benefit of our free Demand Drafts, payable at Kotak Mahindra Bank Branch location
in India.
At-par Cheques
33
Get free At-par Cheques that are treated as 'local clearing' cheques across all branch locations.
All these at nominal costs.
Cheque Collection
All Outstation cheques, drawn on any of branch locations, are collected 'at nominal charge' for
you. The strong network of correspondent banks enables us to collect cheques from 1600
locations across India at faster speed and minimal cost
Mobile Banking and Alerts
Our Mobile Banking & Alerts service enables to access bank account on Mobile Phone. One can
access all your standing instructions (SI), any large credits or debits, available balance, balance
below AQB, any SI failure and SIs successfully executed will be intimated to you via SMS
PRO Current Account
You need a well equipped bank account to keep pace with you in the ever changing business
scenario. We offer you the Kotak Pro Current Account, armed with Kotak 2-Way Sweep, as well
as an entire gamut of Banking Privileges and 'user-friendly' Convenience Banking facilities. The
feature rich Kotak Pro Current Account is the ideal way to make your money work harder.
34
Key Features
Dedicated Relationship Manager
Free Demand Drafts & Pay Orders>
Free At Home Services
Better Forex rates and Efficient Trade Services
ACE Current Account
In the need of a well equipped bank account to keep pace with you in the ever changing business
scenario. They offer you the Kotak Ace Current Account, armed with Business benefits and
exclusive Ace Privileges and an entire gamut of banking conveniences especially designed for
you. The feature rich Kotak Ace Account is the ideal way to make money work harder
Term Deposits
Key Features
Ease and convenience of operation
Liquidity through overdraft or sweep-in facility
No penalty on pre-mature encashment
Nomination facility available
35
Give your portfolio stability of returns and safety and liquidity. Invest in Kotak Bank Term
Deposit. It offer attractive returns on term deposits and investing in them is really simple and
convenient.
Features & Benefits
Ease and convenience of operation
For the first time in India, New to Bank customer can also apply onlinefor term deposit.
An existing customer,can place a term deposit through Phone Banking or Net Banking. What's
more, one 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 branches.
Liquidity through overdraft or sweep-in facility
Deposit will be available to you should you need them in case of an emergency. One can avail
upto 85% overdraft against term by paying 2% above deposit rate. This facility is available for
deposits above Rs.50,000 for a tenure of 181 days or more. One can also choose to link term
deposit to savings / current account, whereby if need be, term deposit will automatically be
encashed to meet withdrawal requirement.
No penalty on pre-mature encashment
In case term deposit is pre-maturely encashed,one will earn interest at the rate prevailing on the
date of deposit for the withdrawn amount.
Nomination facility available
36
One can avail this facility for each & every account that open with us i.e. nominate different
persons for different term deposit accounts can choose to change the nominee through a
declaration in the appropriate form to revise the nomination during the term of the deposit.
INVETSMENT SERVICES
“Making your money grow”
At Kotak Mahindra Bank,canrecognise that financial needs vary, not just amongst individuals,
but across the different stages of your life. They have years of experience in helping people put
together an investment portfolio that works best for them.
DEMAT
37
Key Features
Efficient depository services that allow you to hold your shares in convenient, "demat"
formats
Leverage opportunities in the stock-market when you spot them
It offers streamlined, efficient depository services that allow to hold shares in the convenient
"demat" formats and leverage opportunities in the stock-market when you spot them Being a
brokerage house, the company is in regular touch with the share market and its relative indexes
like NSE &BSE, NCDEX. NSDL, CSDL. Le t ’ s unde r s t and t he r e l a t i ve t e rms :
SEBI (S tock Exchange boa rd o f I nd i a )
I t check ou t on NSE and BSE and a l l t ype o f sha re t r ad ing (Bo th p r ima ry
and s econda ry marke t )
NSE &BSE : - Kotak Mahindra Bank a l l ows t o cos tumer t o t r ade i n sha re w i th
NSE and BSE bo th ( i n p r ima ry and s econda ry marke t bo th ) . I n BSE
cos tumer can t r ade i n 2452 s t ocks and i n NSE cos tumer can t r ade i n 933
compan i e s . The i ndex o f NSE i s N i f t y and fo r BSE Sensex
NSDL AND CSDL
Kotak Mahindra Bank a l l ow to cos tumer t o i nves t i n mu tua l f und and bonds .
NSDL (Na t i ona l s ecu r i t y depos i t o ry l im i t ed ) and CSDL (Cen t r a l s ecu r i t y
depos i t o ry l im i t ed check ou t on t h i s t ype o f i nves tmen t
38
MCX AND NCDEX
Kotak Mahindra Bank a l so a l l ow to cos tumer t o t r ade i n commod i ty by MCX
(Mul t i Commodi ty exchange ) and NCDEX (Na t i ona l Commodi ty da i l y
exchange . I n NCDEX 55 commod i ty a r e t o t r ade
PRODUCTS OFFERED BY KOTAK MAHINRA BANK
The following are the various products of Kotak Mahindra Bank:
DEMAT & ON LINE TRADING ACCOUNT :
The 3-in-1 account integrates your banking, broking and demat accounts. This enables you to
trade in shares without going through the hassles of tracking settlement cycles, writing cheques
and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc.
INITIAL PUBLIC OFFERS(IPO’S)
In t he above p roduc t s we have d i s cus sed i nves tmen t i n equ i t y t h rough
s econda ry marke t s . ano the r way o f i nves t i ng i n equ i t y ma rke t s i s t h rough
t he p r ima ry marke t r ou t e .wheneve r a company comes ou t w i th an i n i t i a l
pub l i c o f f e r i ng you may choose t o app ly fo r t he sha re . Based on number
o f va l i d app l i c a t i on r ece ived , t he company wou ld t hen a l l o t t he sha re t o
app l i c an t s .
39
The o f f l i ne way o f i nves t i ng i n an IPO i s by f i l l i ng phys i ca l app l i c a t i on
fo rms , cheques . And submi t t i ng t he fo rms t h rough you r b roke r . Wi th
KOTAK MAHINDRA BANK a l l you have t o do i s f i l l i ng number o f sha r e
on t he s i t e and submi t .
DERIVATIVES
Cus tomer s w i th d i f f e r en t t ypes o f r i sk p ro f i l e c an u se de r i va t i ve s .
Hedg ing t he ca sh marke t pos i t i on – i dea l f o r l ow r i sk p ro f i l e .
Tak ing advan t age o f a rb i t r age oppo r tun i t y i n equ i t y and de r i va t i ve s
ma rke t s – idea l f o r l ow r i sk p ro f i l e
Tak ing a v i ew on s t ock / i ndex fo r a s l ong a s 3 mon th pe r i od –
med ium r i sk p ro f i l e
Specu l a t i ve t r ad ing -h igh r i sk p ro f i l e
KOTAK MAHINDRA BANK o f f e r s on l i ne i nves tmen t i n fu tu r e and op t i on ,
w i th bene f i t o f au toma ted s e t t l emen t s and on l i ne r i sk mon i to r i ng sy s t em
Mutual Funds
Key Features
Assitance at every step of the investment process
An experienced research team to analyse and research the Mutual Funds available in the
market
Portfolio assistance
Team analyses and researches the Mutual Funds available in the market, helping you make more
informed decisions. The recommendations take into account all relevant factors including the
40
investment philosophy of the Asset Management Company, portfolio quality, risk-adjusted
returns and market trends.
The Mutual funds on advisory list range form Debt to Equity funds and are drawn from top
performing schemes of renowned Mutual Fund houses like Franklin Templeton, Kotak, Reliance,
Prudential ICICI etc.Relationship Manager will recommend the funds that suit the investment
objectives.
In s t ead o f buy ing sha re s o f d i f f e r en t compan i e s t r a ck ing t he p r i c e
movemen t ’ s pe r fo rmance o f t he company , g rowth p rospec t s o f t he
i ndus t r i e s e t c . and t hen t ak ing you r own buy / se l l dec i s i on , you may
cons ide r mak ing i nves tmen t i n equ i t y /deb t ma rke t t h rough t he mu tua l f und
rou t e . Mu tua l f und i s a SEBI r eg i s t e r ed en t i t y t ha t poo l s t he money o f
many i nd iv idua l s ’ i nves to r s t o pu rchase t he s t ocks , bond o r o the r
f i nanc i a l i n s t rumen t s . p ro f e s s iona l
Managemen t and d ive r s i f i c a t i on a r e t he two p r ima ry bene f i t s o f mu tua l
f und i nves t i ng . Fo r beg inne r s , o r f o r cus tomer who a r e unab l e t o spend
t ime on r e sea r ch ing s t ocks t hemse lve s , mu tua l f und i s an i dea l r ou t e fo r a
i nves tmen t i n equ i t y . I nves t i ng i n mu tua l f unds o f f l i ne i nvo lve s , t r a ck ing
down the agen t s appo in t ed by t he mu tua l f unds AMCs , f i l l i ng l eng thy
fo rms , wr i t i ng cheque , r u sh ing t o t he o f f i c e o f t he agen t s be fo re t he cu t
o f f t im ing t o ensu re t ha t t he de s i r ed NAV i s a l l o t t ed
Bancassurance
41
They offer a range of carefully selected insurance policies across the entire spectrum of life
insurance products Relationship managers will analyze your insurance needs and develop the
solution that works best for you.
KOTAK INSURANCE has a wide array of insurance plans that have been designed with the
philosophy that different individuals are bound to have differing insurance needs.
The ideal insurance plan is one that addresses the exact insurance needs of the individual that
will depend on the age and life stage of the individual apart from a host of other factors.
The various plans offered by KOTAK INSURANCE are as follows:
Kotak Smart Advantage Plan
Kotak Eternal Life Plans
Kotak Headstart Child Plans
Kotak Safe Investment Plan II
Kotak Flexi Plan
Kotak Easy Growth Plan
Kotak Capital Multiplier Plan
Kotak Term Plan
Kotak Preferred Term Plan
CONVENIENCE BANKING
“Anywhere, Anytime Banking”
42
In today's day and age time is money. You work hard and have a busy schedule. Doing banking
should be easy and convenient and not add to worries.
Kotak Mahindra Bank realize this and have specially tailored a wide range of value added
products and services to make money work for you. These, coupled with the highest standard of
customer care will make life simpler and easier.
Multiple Banking Channels
Today the technology driven banks are finding various means to reduce costs and reach out to as
many customers as possible spread over a diverse area. This has led to using multiple channels of
delivery of their products.
ATM (Automatic Teller Machine) :
An ATM is basically a machine that can deliver cash to the customers on demand after
authentication. However, nowadays we have ATMs that are used to vend different FMCG
products also. An ATM does the basic function of a bank’s branch, i.e., delivering money on
demand. Hence setting of newer branches is not required thereby significantly lowering
infrastructure costs.
Cost reduction is however possible only when these machines are used. In India, the average
cash withdrawal per ATM per day has fallen from 100 last years to 70 this year. Though the
number of ATMs has increased since last year, it is not in sync with the number of cards issued.
Also, there are many dormant cardholders who do not use the ATMs and prefer the teller
counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish
pace. These machines also hold the keys to future operational efficiency
43
Account holders of Kotak Mahindra Bank Saving Account having Visa Electron Debit Card can
access other Banks ATM machines unlimited times per month for free, after that the Account
holder has to pay nothing for the transaction. But also holders of ATM cards cannot access
machines belonging to other Banks.
The number of ATM machines installed by Kotak Mahindra Bank is 20 in Delhi and the All
India tally is 156 machines. When this figure is compared to ICICI Bank which has thrice the
number of machines in Delhi or HDFC Bank which has nearly twice the number of machines in
Delhi, this is worrying for Kotak Mahindra Bank.
“Growth In ATM Machine With Increased Use”
44
NAME OF BANK NUMBER OF ATM
MACHINES (ALL
INDIA BASIS)
NUMBER OF ATM
MACHINES (INDORE)
KOTAK MAHINDRA
Bank
122 26
ICICI Bank 560 112
HDFC Bank 625 66
IDBI 350 43
CITIBANK 160 22
HSBC 103 21
AMN Amro 40 13
UTI 507 -
GTB 250 20
The Table below shows the number of ATM machines belonging to various banks in India:-
From the above table we can clearly see that HDFC Bank is the Bank which has highest number
of ATM machines on All India basis, this is followed by ICICI Bank, then UTI.
When we look at the concentration of machines in the Delhi Region we see that out of ICICI
Bank’s 560 Machines 112 are located in Delhi representing 20%.
The corresponding figure for Kotak Mahindra Bank is 14.2%. HDFC Bank is 11.8%, IDBI Bank
is 12.3%, and CITIBANK is 13.75%.
45
Net Banking:
Net banking means carrying out banking transactions via the Internet. Thus the need for a branch
is completely eliminated by technology. Also this helps in serving the customer better and
tailoring products better suited for the customer.
A customer can view his account details, transaction history, order drafts, electronically make
payments, transfer funds, check his account position and electronically communicate with the
bank through the Internet for which he may have wanted to visit the bank branch.
Net banking helps a bank spread its reach to the entire world at a fraction of the cost
Phone Banking:
This means carrying out of banking transaction through the telephone. A customer can call up
the banks help line or phone banking number to conduct transactions like transfer of funds,
making payments, checking
of account balance, ordering cheques, etc. This also eliminates the customer of the need to visit
the bank’s branch.
Mobile Banking:
Banks can now help a customer conduct certain transactions through the Mobile Phone with the
help of technologies like WAP, SMS, etc. This helps a bank to combine the Internet and
telephone and leverage it to cut costs and at the same time provide its customer the convenience.
Thus it can be seen that tech savvy banks are tapping the entire above alternative channels to cut
costs improve customer satisfaction
SMS Banking
46
Kotak Mahindra Bank's SMS Banking service enables you to access your bank account,
investment account and demat account on your Mobile Phone. Now get latest update on your
account balance, salary credits, large debits, large credits, holding value and much more, on your
mobile anytime.
INTERNET BANKING
INTRODUCTION
The Internet banking is changing the banking industry and is having the major effects on banking
relationships. Internet banking involves use of Internet for delivery of banking products &
services. It falls into four main categories, from Level 1 - minimum functionality sites that offer
only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling
integrated sales of additional products and access to other financial services- such as investment
and insurance.
DRIVERS OF CHANGE
Advantages previously held by large financial institutions have shrunk considerably. The Internet
has leveled the playing field and afforded open access to customers in the global marketplace.
Internet banking is a cost-effective delivery channel for financial institutions. Consumers are
embracing the many benefits of Internet banking. Access to one's accounts at anytime and from
any location via the World Wide Web is a convenience unknown a short time ago.
The primary drivers of Internet banking are:
· Improve customer access
· Facilitate the offering of more services
· Increase customer loyalty
· Attract new customers
47
Internet Banking is the most technological advanced means to do Banking. Through this medium
the Account holder can do various types of transactions without having to leave his
Office/Residence.
The Account holder has the convenience to do transaction no matter where he is in the world at
any time of the day. Internet is the most cost effective medium of Banking from the point of
view of the Banks; it costs a fraction to the Bank as compared to other mediums like Branch
Banking or ATM.
But this medium is not as favored a medium as it in the west , the reasons for this is that firstly ,
this is a relatively new concept in India , secondly , general perception that this is not safe ,
thirdly , computers and internet are not widely spread all over the country.
MAIN CONCERNS IN INTERNET BANKING
48
Very Satisfied Somewhat Sat-isfied
Neither Satis-fied nor Dissat-
isfied
Somewhat Dissatisfied
Very Dissatis-fied
0
2
4
6
8
10
12
14
0
7
0
13
0
SATISFACTION LEVEL WITH INTERNET BANKING
In a survey conducted by the Online Banking Association, member institutions rated security as
the most important issue of online banking. There is a dual requirement to protect customers'
privacy and protect against fraud.
1. A multi-layered security architecture comprising firewalls, filtering routers, encryption and
digital certification ensures that account information is protected from unauthorized access:
Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access
the system.
2· Encryption techniques used by the bank (including the sophisticated public key encryption)
would ensure that privacy of data flowing between the browser and the Infinity system is
protected.
3· Digital certification procedures provide the assurance that the data you receive is from the
Infinity system.
STRATEGIC ALLIANCES ENTERED BY KOTAK MAHINDRA BANK
NATIONAL ATM ALLIANCES
49
The Institute for Development and Research in Banking Technology (IDRBT), a group
established by the Reserve Bank of India (RBI) in 1996, has planned to set up a national switch
to hook up all of the country's 10,000-odd ATMs.
The idea of establishing ATM interconnectivity through a national switch has been approved by
the information chiefs of various Banks.
The expected cost of transactions routed through the switch is to be under 10 rupees (21 cents
U.S.) each, due to the high volumes of transactions -- almost 100,000 per day.
CASH NET
It is an Alliance between Citibank, Industrial Development Bank of India, Kotak Mahindra Bank
and UTI Bank. This is the country's first independent shared ATM network.
IDBI Bank received permission from the Reserve Bank (RBI) to serve as the network's
settlement bank.
Cash net will give access to more than 1,300 ATMs for more than 6 million debit cardholders of
the member banks. The Alliance would constitute about a third of the total card base and 15
percent of the ATM base in the country.
Kotak Mahindra Bank and REDIFF.com
REDIFF.com India and Kotak Mahindra Bank have entered into an alliance to provide online
and offline banking and related services to the Indian consumer.
The alliance will enable information on the entire range of the banks consumer banking products
to be made available to the 6.4 million online customers of Rediff.com.
The services offered include detailed information on various deposits, loans and mortgages,
credit cards, mutual funds and insurance products of the bank. Users will be able to directly
interact with the bank and request for products online
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OTHER SERVICES
BANKING HOURS
Kotak Mahindra Bank Account holders have been able to infer that Branch Banking is the
second most Frequent Point of Interaction with the Bank. The Average Banking Hours is a very
important aspect associated with any Bank. In today’s fast paced life where people who hold
Accounts with the Bank are busy working it is important that they can find a way to visit the
Bank without having to miss out on work.
The Average Banking Hours of Kotak Mahindra Bank is from 9am to 7pm, the Bank is open to
the public for ten hours. These timings are convenient for especially those Account holders who
are working, these people can visit the Bank after their Office finishes.
Apart from the Average Banking Hours Kotak Mahindra Bank offers to it’s Account holders 24
Hour Branch, 365 Days Branch and the facility of Sunday Banking.
Kotak Mahindra Bank is the only Bank which offers a 24 Hour Branch in India, this is a big
boon for people who cannot take the time out to visit the Bank during the normal working hours
and is also very handy during emergencies.
The 365 Day Branch of Kotak Mahindra Bank is also unique and the only other Bank offering
this service is ABN Amro , this Branch is open regardless of the fact that it is a Sunday or a
public holiday.
Sunday Banking is very useful for people who are busy throughout the week and the only day
when they find the time is Sunday. Other Banks offering this service apart from Kotak Mahindra
Bank are ABN Amro and CITIBANK.
Best Compliments Card – the perfect gift
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Introducing Best Compliments Card - the prepaid card from Kotak Mahindra Bank. It lets
your loved ones choose their own gift or shop or enjoy at any place that accepts Visa cards,
be it a shopping mall, a restaurant or a multiplex. So go ahead and give someone the perfect
gift!
No Kotak Mahindra Bank account required
Not restricted to a single brand or outlet - accepted at over 3 lakhs merchant
establishments in India that accept Visa cards
Can be used at your convenience - no need to spend the entire value in a single purchase
Attractively packaged and ready-to-gift
Available at all Kotak Mahindra Bank branches
Valid for two years from date of issue of card
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CHAPTER 5
DATA ANALYSIS, RESULTS AND FINDINGS
53
Statistics
GENDER AGE OCCUPATION INCOME
N Valid 70 70 70 70
Missing 0 0 0 0
Frequency Table
GENDER
Frequency Percent Valid Percent Cumulative Percent
Valid MALE 42 60.0 60.0 60.0
FEMALE 28 40.0 40.0 100.0
Total 70 100.0 100.0
AGE
Frequency Percent Valid Percent Cumulative Percent
Valid 15-25 YEARS 34 48.6 48.6 48.6
26-35 YEARS 16 22.9 22.9 71.4
36-45 YEARS 16 22.9 22.9 94.3
46 YEARS AND ABOVE 4 5.7 5.7 100.0
Total 70 100.0 100.0
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OCCUPATION
Frequency Percent Valid Percent Cumulative Percent
Valid BUSINESS 9 12.9 12.9 12.9
GOVERNMENT JOB 14 20.0 20.0 32.9
PRIVATE SECTOR 28 40.0 40.0 72.9
OTHERS 19 27.1 27.1 100.0
Total 70 100.0 100.0
INCOME
Frequency Percent Valid Percent Cumulative Percent
Valid 1 LAC- 1.5 LACS 4 5.7 5.7 5.7
1.5 LACS- 2.5 LACS 8 11.4 11.4 17.1
2.5 LACS- 5 LACS 39 55.7 55.7 72.9
5 LACS AND ABOVE 19 27.1 27.1 100.0
Total 70 100.0 100.0
55
Pie Chart
56
57
58
59
Descriptive Statistics
N Mean Std. Deviation Minimum Maximum
RESPONSIVENESS 70 3.7571 .57573 3.00 5.00
QUALITY 70 3.6429 .66016 2.00 5.00
COMPETITIVENESS 70 3.4571 .65244 2.00 5.00
BANKINGSTAFF 70 3.8143 .90558 2.00 5.00
SERVICESPEED 70 3.7000 .95326 2.00 5.00
STAFFAVAILABILITY 70 3.9000 .78297 2.00 5.00
DISTINCTIVENESS 70 3.6286 .74545 2.00 5.00
CONVENIENCE 70 3.6000 .76896 2.00 5.00
ACCESSIBILITY 70 3.6429 .90146 1.00 5.00
SERVICABILITY 70 3.5857 .75167 2.00 5.00
PRICING 70 3.6571 .69960 2.00 5.00
BANKINGHOURS 70 3.7857 .79660 2.00 5.00
SECURITY 70 3.8714 .84992 2.00 5.00
SECURITYARCHITECTURE 70 3.8571 .87287 2.00 5.00
CUSTOMERLOYALTYPROGRA
MME70 3.6714 .73665 1.00 5.00
PERSONALIZATION 70 3.6714 .86345 1.00 5.00
CREDITWORTHINESS 70 3.8143 .76694 2.00 5.00
GRIEVANCEHANDLING 70 3.6000 .90730 1.00 5.00
OVERALLEXPERIENCE 70 3.8143 .68721 2.00 5.00
60
Chi-Square Test
Frequencies
RESPONSIVENESS
Observed N Expected N Residual
SATISFACTORY 22 23.3 -1.3
GOOD 43 23.3 19.7
EXCELLENT 5 23.3 -18.3
Total 70
Chi-square: 31.057
Degrees of Freedom: 2
Asymp. Significance: 0.000
61
QUALITY
Observed N Expected N Residual
POOR 1 17.5 -16.5
SATISFACTORY 29 17.5 11.5
GOOD 34 17.5 16.5
EXCELLENT 6 17.5 -11.5
Total 70
Chi-square: 46.229
Degrees of Freedom: 3
Asymp. Significance: 0.000
62
COMPETITIVENESS
Observed N Expected N Residual
POOR 3 17.5 -14.5
SATISFACTORY 35 17.5 17.5
GOOD 29 17.5 11.5
EXCELLENT 3 17.5 -14.5
Total 70
Chi-square: 49.086
Degrees of Freedom: 3
Asymp. Significance: 0.000
63
BANKINGSTAFF
Observed N Expected N Residual
POOR 6 17.5 -11.5
SATISFACTORY 18 17.5 .5
GOOD 29 17.5 11.5
EXCELLENT 17 17.5 -.5
Total 70
Chi-square: 15.143
Degrees of Freedom: 3
Asymp. Significance: 0.002
64
SERVICESPEED
Observed N Expected N Residual
POOR 7 17.5 -10.5
SATISFACTORY 24 17.5 6.5
GOOD 22 17.5 4.5
EXCELLENT 17 17.5 -.5
Total 70
Chi-square: 9.886
Degrees of Freedom: 3
Asymp. Significance: 0.020
65
STAFFAVAILABILITY
Observed N Expected N Residual
POOR 3 17.5 -14.5
SATISFACTORY 16 17.5 -1.5
GOOD 36 17.5 18.5
EXCELLENT 15 17.5 -2.5
Total 70
Chi-square: 32.057
Degrees of Freedom: 3
Asymp. Significance: 0.000
66
DISTINCTIVENESS
Observed N Expected N Residual
POOR 4 17.5 -13.5
SATISFACTORY 25 17.5 7.5
GOOD 34 17.5 16.5
EXCELLENT 7 17.5 -10.5
Total 70
Chi-square: 35.486
Degrees of Freedom: 3
Asymp. Significance: 0.000
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CONVENIENCE
Observed N Expected N Residual
POOR 4 17.5 -13.5
SATISFACTORY 28 17.5 10.5
GOOD 30 17.5 12.5
EXCELLENT 8 17.5 -9.5
Total 70
Chi-square: 30.800
Degrees of Freedom: 3
Asymp. Significance: 0.000
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ACCESSIBILITY
Observed N Expected N Residual
VERY POOR 2 14.0 -12.0
POOR 2 14.0 -12.0
SATISFACTORY 27 14.0 13.0
GOOD 27 14.0 13.0
EXCELLENT 12 14.0 -2.0
Total 70
Chi-square: 45.000
Degrees of Freedom: 4
Asymp. Significance: 0.000
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SERVICABILITY
Observed N Expected N Residual
POOR 4 17.5 -13.5
SATISFACTORY 28 17.5 10.5
GOOD 31 17.5 13.5
EXCELLENT 7 17.5 -10.5
Total 70
Chi-square: 33.429
Degrees of Freedom: 3
Asymp. Significance: 0.000
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PRICING
Observed N Expected N Residual
POOR 3 17.5 -14.5
SATISFACTORY 24 17.5 6.5
GOOD 37 17.5 19.5
EXCELLENT 6 17.5 -11.5
Total 70
Chi-square: 43.714
Degrees of Freedom: 3
Asymp. Significance: 0.000
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BANKINGHOURS
Observed N Expected N Residual
POOR 3 17.5 -14.5
SATISFACTORY 22 17.5 4.5
GOOD 32 17.5 14.5
EXCELLENT 13 17.5 -4.5
Total 70
Chi-square: 26.343
Degrees of Freedom: 3
Asymp. Significance: 0.000
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SECURITY
Observed N Expected N Residual
POOR 5 17.5 -12.5
SATISFACTORY 15 17.5 -2.5
GOOD 34 17.5 16.5
EXCELLENT 16 17.5 -1.5
Total 70
Chi-square: 24.971
Degrees of Freedom: 3
Asymp. Significance: 0.000
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SECURITYARCHITECTURE
Observed N Expected N Residual
POOR 5 17.5 -12.5
SATISFACTORY 17 17.5 -.5
GOOD 31 17.5 13.5
EXCELLENT 17 17.5 -.5
Total 70
Chi-square: 19.371
Degrees of Freedom: 3
Asymp. Significance: 0.000
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CUSTOMERLOYALTYPROGRAMME
Observed N Expected N Residual
VERY POOR 1 14.0 -13.0
POOR 2 14.0 -12.0
SATISFACTORY 22 14.0 8.0
GOOD 39 14.0 25.0
EXCELLENT 6 14.0 -8.0
Total 70
Chi-square: 76.143
Degrees of Freedom: 4
Asymp. Significance: 0.000
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PERSONALIZATION
Observed N Expected N Residual
VERY POOR 1 14.0 -13.0
POOR 4 14.0 -10.0
SATISFACTORY 23 14.0 9.0
GOOD 31 14.0 17.0
EXCELLENT 11 14.0 -3.0
Total 70
Chi-square: 46.286
Degrees of Freedom: 4
Asymp. Significance: 0.000
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CREDITWORTHINESS
Observed N Expected N Residual
POOR 3 17.5 -14.5
SATISFACTORY 19 17.5 1.5
GOOD 36 17.5 18.5
EXCELLENT 12 17.5 -5.5
Total 70
Chi-square: 33.429
Degrees of Freedom: 3
Asymp. Significance: 0.000
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GRIEVANCEHANDLING
Observed N Expected N Residual
VERY POOR 2 14.0 -12.0
POOR 3 14.0 -11.0
SATISFACTORY 27 14.0 13.0
GOOD 27 14.0 13.0
EXCELLENT 11 14.0 -3.0
Total 70
Chi-square: 43.714
Degrees of Freedom: 4
Asymp. Significance: 0.000
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OVERALLEXPERIENCE
Observed N Expected N Residual
POOR 2 17.5 -15.5
SATISFACTORY 18 17.5 .5
GOOD 41 17.5 23.5
EXCELLENT 9 17.5 -8.5
Total 70
Chi-square:49.429
Degrees of Freedom: 3
Asymp. Significance: 0.000
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ANALYSIS: We have formulated a null hypothesis, H0, for all the above mentioned 19 variables and then taking 5% as the level of significance we have tested all these 19 hypotheses on the basis of the fact that:
If, p<0.005(level of significance), then the null hypothesis is rejected and the alternate hypothesis, HA is accepted.
All the 19 variables have their null hypotheses and alternate hypotheses formed on the underlying concept:
H0 = The concerned variable does not has a significant role to play in enhancing the customer retention of Kotak Mahindra Bank.
HA = The concerned variable has a significant role to play in enhancing the customer retention of Kotak Mahindra Bank.
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FINDINGS:-On the basis of our analysis we have found that for all the 19 variables, the value of p calculated with the help of chi-square is less than 0.005, hence the null hypotheses formulated with respect to all the 19 variables have been rejected and hence all the 19 respective alternate hypotheses of the respective 19 variables are accepted.
Hence, it is found that on the basis of the value of chi-square the importance of the important variables that enhances the customer retention of Kotak Mahindra Bank in the order of their priority is as follows:
1. Customer Loyalty Programs2. Overall Experience3. Competitiveness of the bank’s products and services4. Personal Attention paid to the customers5. Quality of products and services being offered6. Accessibility7. Grievance Handling and Settlement8. Pricing9. Convenience10. Serviceability11. Staff availability12. Responsiveness13. Banking Hours14. Creditworthiness15. Security16. Distinctiveness17. Service speed18. Security architecture of online banking
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CHAPTER 6
CONCLUSION AND RECOMMENDATIONS
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CONCLUSION: Hence, on the basis of a detailed analysis of all the important parameters taken under consideration for their significant roles in enhancing customer retention strategy of Kotak Mahindra Bank, I arrive at the conclusion that Customer Loyalty Programs are the best way to ensure and to enhance customer retention in a banking organization because of the fact that in case of service industries like banking organizations, the product is of highly intangible nature and the whole confidence of the consumer over the performance of the product depends upon the trust of the organization with the customer. Hence, in order to provide the customer a strong bonding of trust and loyalty towards the customer, it is necessary to conduct customer loyalty programs for the existingcustomers of the organization in order to ensure the benefits of customer retention. Apart from this, one more important conclusion from the above study that can be drawn is that in case of banking sector, the customer should be provided with an overall satisfactory experience through standardized service in a personalized manner with the bank employee having an equal blend of sales orientation as well as service orientation with a proper attitude to serve. It can be finally concluded that Kotak Mahindra Bank is having a very high degree of customer satisfaction due to which it has been able to successfully retain its existing customers and hence enjoying the competitive advantage of customer loyalty over its other competitors.
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RECOMMENDATIONS: I would like to make the following recommendations:
1. More emphasis should be given towards the integration of Customer Loyalty Programs with the performance evaluation of the employees of the bank in order to increase their willingness to perform these programs.
2. The bank should look forward to start loyalty programs for its marketing intermediaries.3. The bank should look forward to increase the frequency of customer rater scale
evaluation of its employees in order to keep a regular check on the customer’s satisfaction level with the bank employees.
4. The bank should should emphasize on more customized services to its premium customers.
5. The bank should focus on a proper training program for all its employees in order to acquaint them with an attitude to serve.
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CHAPTER 7
LIMITATIONS
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LIMITATIONS
Despite of all my sincere and honest efforts to ensure maximum comprehension,
the study could not be made that comprehensive due to time constraints. Some customers feel
uncomfortable to reveal some personal information relating to income, Privacy etc. it might have
happened that some more essential information could have been collected.
Time constraint.
Biases and non-cooperation of the respondents.
Financial constraint leading to inability to provide some motivational hampers to the
respondents to ensure proper response.
Geographical selectivity in study limiting to Indore city only.
People are not interested in giving personal opinions.
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QUESTIONNAIRE
Dear Respondent,
I am a student of MBA [(FULLTIME) MAJOR- MARKETING] from INSTITUTE OF MANAGEMENT STUDIES (IMS) DAVV; INDORE.I am undertaking a major research project work on “Customer Retention Strategy of Kotak Mahindra Bank”. I would be grateful if u you could spare a few minutes to complete this structured questionnaire in order to help me in completing my research work .Whatever the personal information would be provided by you will be kept confidential and used for research purpose only.
Name:
Contact No. :
Address (optional):
1. Please specify your Gender:-1. Male 2.Female
2. Please specify the age group which you belong to:-
1. 15-25 years 2. 26-35 years 3.36-45 years 4. 46 and above
3. Please specify your occupation:-
1. Agriculture 2. Business 3.Government Job 4. Private Sector
5. Others
4. Please specify your reason for visit to the branch:-
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1. Enquiry 2. Deposit/Withdrawal 3. Loan 4. Other Services
5. Please specify your annual income (optional):-
1. 1 lac to 1.5 lac 2. 1.5 lac to 2.5 lac 3.2.5 lac to 5 lac 4. 5 lac and above
6. Please specify your status with the bank:-
1. Employee 2. Customer 3. Market Intermediary 4. Visitor
Please tick the appropriate number to indicate your degree of satisfaction on the 5 pointer scale given
Where: - 5 = Excellent 4 = Good 3 = Satisfactory 2 = Poor 1 = Very Poor
7. How do you rate the responsiveness of the bank employee in dealing with you?
1 2 3 4 5
8. How do you rate the products and services offered and did they meet your needs and expectations regarding quality and performance?
1 2 3 4 5
9. How do you rate the competitiveness of the products and services offered and do they present best value of total cost of lifetime ownership?
1 2 3 4 5
10. How do you rate the banking staff on their knowledge about the products and services offered by the bank?
1 2 3 4 5
11. How do you rate the speed of service offered to you by the bank?
1 2 3 4 5
12. How do you rate the availability of staff in the bank?
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1 2 3 4 5
13. How do you rate the availability of differentiated products and services of the bank in the crowded market?
1 2 3 4 5
14. How do you rate the convenience offered by the bank in branch banking as well as through its various points of interaction with the bank?
1 2 3 4 5
15. How do you rate the accessibility of multiple banking channels offered by the bank?
1 2 3 4 5
16. How do you rate the serviceability of multiple banking channels offered by the bank?
1 2 3 4 5
17. How do you rate the pricing of various products and services offered by the bank?
1 2 3 4 5
18. How do you rate the banking hours provided by the bank?
1 2 3 4 5
19. How do you rate the security of the bank?
1 2 3 4 5
20. How do you rate the security architecture of net banking facility of the bank?
1 2 3 4 5
21. How do you rate the customer loyalty programmes offered by the bank?
1 2 3 4 5
22. How do you rate the personal attention provided to you by the bank through all of its banking channels?
1 2 3 4 5
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23. How do you rate the creditworthiness of the bank?
1 2 3 4 5
24. How do you rate the grievance handling and settlement activity of the bank?
1 2 3 4 5
25. How do you rate the overall experience with the bank?
1 2 3 4 5
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CHAPTER 8
REFERENCES AND BIBLIOGRAPHY
91
BIBLIOGRAPHY
There was immense need and flow of the information while conducting the analysis as
well as while writing the thesis report, which was gathered through various sources
mentioned below:
FOR PRIMARY DATA:
NON-DISGUISED STRUCTURED QUESTIONNAIRE FILLED AT KOTAK MAHINDRA
BANK, M.G. ROAD BRANCH, INDORE
FOR SECONDARY DATA:
Various Magazines and Newspapers
Outlook- Sept 2011 edition, page no. 28-29
Financial Times- January 2012 edition, page no. 45
The Times of India- February 8, 2012
The Hindustan Times- February 22, 2012
Internet
www.Kotak.com
(data collected on 3rd march and 11th April 2012)
www.wikipedia.com
92
REFERENCES:
JOURNALS: – 1. Indian Journal of Finance, January 2012 edition
2. Journal of Indian Bank Association, august 2011 edition3. IUP Journal of Business Strategy, November 2011 edition
Brochures and various other documents gathered and collected from bank and various other sources such as ATM centers and associates.
BOOKS:- Kothari C.R et.al; Research Methodology, New Age International Publishers, 8TH Edition, 2010
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