PROJECT On Kotak Bank

COMPARATIVE ANALYSIS OF KOTAK MAHINDRA BANK
SALARY ACCOUNT WITH ITS COMPETITOR’S
A report submitted to Accurate Institute of Management and Technology, Greater

Noida as a mandatory part of PGDM curriculum
Submitted to: Submitted by:
Dr. RAJEEV BHARDWAJ RISHI KAPOOR
PGP CELL, AIMT PGDM 08-10
Greater Noida. ROLL NO- DM08078
ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY
49, Knowledge Park III, Greater Noida-201306.

Accurate Institute of Management and Technology, Greater Noida
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E-mail-pgpcell@accurate.in
FOR MORE DETAIL ABOUT THE PROJECT

MAIL ME ON
Rishi548gmail.com

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DECLARATION
I Rishi kapoor, Son of shri Raj kapoor here by declared that the project entitled
” which is being submitted in partial fulfillment of the requirements for the awards of
degree of PGDM from the Accurate Institute Of Management & Technology is an
own record carried out by me under the supervision of Mr.Punish Khurana Project
Head and Senior Manager, (KOTAK BANK). The matter embodied in this project
has not been submitted so far for the award of any degree or diploma.
Rishi Kapoor
Course: PGDM
College: Accurate Institute of Management &

Technology
Greater Noida
(U.P)

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TABLE OF CONTENTS
Contents Page
Acknowledgements …2
Declaration …3
List of Tables 4-5
Executive Summary …6
List of Illustrations/Diagrams …7
Chapter 1: 8-34
Introduction …8
History of banking 9-10
Banking system in India 11-15
Kotak Mahindra bank 16-21
Kotak Product Line 22-32
Objective 33-34
Chapter 2: 35-44
The Reserve Bank of India 35-37
Marketing 38-40
Competitors 41-44
Chapter 3: 45-55
Features and Benefits - Kotak Ace Salary Account 45-49
Salary Account Features of Kotak And Others …50
SWOT Analysis of Kotak Mahindra Bank 51-54

Issues and Challenges for The Company 5 …55
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Executive Summary
The service industry is one of the fastest growing sectors in India today. The
upcoming sectors, which are really showing the graph towards upwards, are Telecom,
Banking, and Insurance. These sectors really have a lot of responsibility towards the
economy. Main focus of this report is based on of the COMPARATIVE ANALYSIS
OF KOTAK MAHINDRA BANK SALARY ACCOUNT WITH ITS COMPETITOR
Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the financial needs of individuals and corporate. The project report gives an
insight about the salary account of Kotak Mahindra bank and throws the lights upon
the SWOT (Strengths, weakness, opportunities, threats) analysis of bank.

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LIST OF TABLES
NAME OF TABLE Page no
SOME OF THE IMPORTANT MILESTONES OF KOTAK MAHINDRA

GROUP 19
SALARY ACCOUNT FEATURES OF KOTAK AND OTHERS 50
LIST OF CHARTS/FIGURES
Name of chart/Figure Page No
Growth Story of Kotak Group 20
KOTAK SYMBOL 21
HIERARCHY OF RBI 40

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HISTORY OF BANKING
How did banking originate? What activity resulted in Banking, as we know it today?
To answer these questions it is necessary to step back into history – to several
thousands of years and study its origins.
Barter
Man was, in the dawn of history, simple and self-sufficient. He lived in caves, killed
animals when hungry and he had no other wants. As time passed, men began living in
villages and started to till the ground. Often the produce of a farmer’s fields was more
that he required. Similarly, a fisherman often caught more than his family required. In
the ideal situation, the farmer would exchange his produce for fish with the fisherman.
This exchange is known as barter. And in the ideal world they would both be content.
However, a complication could and would arise if the farmer did not require or want
fish. If the farmer required a plough and the smith requires steel there would be
tremendous and horrendous difficulty in matching those that individuals had with that
which they needed. And it was on account of this difficulty of meeting needs that the
barter system surrendered to money.
Money
Money was created or rather born to reduce the value of the items people had to a
common denominator to facilitate exchange of products to satisfy needs. The
fisherman would sell his fish as would the farmer for money. The farmer would then
armed with the money he has in hand purchase a plough. The fisherman with the
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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.
Banking
Banks were born to facilitate trade – to lend monies to purchase goods, to store
monies and to change currencies. Banking began thousands of years ago. The
Assyrians, Babylonians and Ancient Greeks practiced simple forms of banking –
safekeeping, exchanging foreign coins and making loans – mainly in connection with
trade. Temples such as those of Ephesus and Delphi were Greek banking institutions.
The Romans did not have State Banks but had minute regulations regarding private
banks. These were calculated to create utmost confidence in the system. Ancient
Rome had two types of bankers – those who made loans and those who exchanged
foreign monies.
The term “bank” is derived from the Italian word “banco” which means bench. The
early bankers, the Jews of Lombard, transacted their business at benches in the market
place and later in inns and taverns. In those days if a banker failed, his “banco” or
bench was broken, hence the term “bankrupt”. Another opinion is that the term
“bank” evolved from the German word “back” meaning a joint stock fund which was

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Italianised into “banco”. As many of these inns/taverns were known by the signs they
had such as eagle, crossed swords etc.
BANKING SYSTEM IN INDIA
The Banking System in India consists of :
 Reserve Bank
 Development Banks
 Public Sector Bank.
 Foreign Banks
 Private Sector Banks
 Cooperative Banks
 Regional Rural Banks
The Reserve Bank of India
The Reserve Bank of India is the Central Bank of the Country and came into being by
the Reserve Bank of India Act 1934. It was nationalized in 1948.
 The bank that issues and regulates the issue of currency in India
 The banker to the Government of India and the State governments. It
manages the public debt. It has the obligation to transact the banking
business of the Central Government. It undertakes to accept money on

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behalf of the Government and make payment on its behalf.
 The banker’s bank. Commercial banks maintain their current account with
the Reserve Bank of India.
 The bank that manages the volume of credit created by the commercial banks
to ensure price stability.
 The bank that manages the external value of the currency (Indian rupee)
 The lender of Last Resort. It will lend to banks in trouble.
Development Banks
These were set up to give long term finance for the development of the country.
These are the Industrial Finance Corporation of India and the Industrial Development
Bank of India, The Industrial Reconstruction Bank of India and the National Bank for
Agriculture and Rural Development. A former development bank, the Industrial
Credit and Investment Corporation of India Ltd. by a reverse merger in 2002, became
a normal commercial bank. It is expected that the other development banks, having
outlived their utility would also be either converted to commercial banks or merged
with commercial banks.
Public Sector Banks
These are banks which the Government either owns or has a majority stake in.
The largest is the State Bank of India,which was formed by the merger of the

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Presidency Banks – the Bank of Bengal, the Bank of Bombay and the Bank of Madras
in 1921. It was then known as the Imperial Bank. It was nationalized in 1955 by the
passing of the State Bank of India Act, 1955. It has seven subsidiaries or associates.
The other nationalized banks came into being on July 19, 1969 when Mrs. Gandhi’s
Government nationalized fourteen banks that had deposits of Rs. 50 crores or more.
On April 15, 1980, six more banks having demand and time liabilities of not less than
Rs.200 crores were nationalized. This was done to take banking to the villages and
serve the developmental needs of all sectors of the economy.
Foreign Banks
These are branches of banks incorporated outside India.
The larger ones that have been operating in India for many years are Standard
Chartered Bank, Citibank, American Express Bank, ABN Amro, BNP Paribas and
Hong Kong and Shanghai Banking Corporation.
In 1995/ 96 many other foreign banks (optimistic in view of India’s liberalization)
opened branches in India. However, after banking began to become increasingly
competitive and margins began to squeeze coupled with large non-performing assets,
many banks closed their branches. These include Dresdner Bank, Comerz Bank, KBC
Bank and Commercial Bank of Siam.
Private Sector Banks
These banks are not government owned or controlled. Their shares are freely traded
in the Stock Markets.

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These may be divided into:
 Old Private Sector Banks such Federal Bank, Dhanalakshmi Bank,
Catholic Syrian Bank
 New generation Banks such as HDFC Bank, IDBI Bank, UTI Bank
and ICICI Bank. Those have permitted to open provided they had a
capital of Rs. 100 crores.
Cooperative Banks
Cooperative Banks are those that created by a group of individuals to support either a
community or a religious group. They operate in metropolitan, urban and semi urban
centers to cater to the need s of small borrowers.
These are controlled by the RBI and by State Cooperative Acts.
In recent years these have been under a cloud on account as several (particularly in
Gujarat and Andhra Pradesh) collapsed under controversy. They were used as
vehicles by individuals to finance activities which did not succeed.
Regional Rural Banks
These came into being on October 2, 1975 when 5 regional rural banks were
established under what became the Regional Rural Banks Act 1975. These were to
bridge the gap in rural credit granting loans and advances to small and marginal
farmers, artisans, small entrepreneurs and persons of small means engaged in trade,
commerce, industry or other productive activities within their area of operation.

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Local Area Banks
Local Area Banks came into existence in 1999 and licences were given for these
banks as it was felt that regular commercial banks were not financial the rural/
agricultural sector adequately. Licences have given to open branches in three districts.
Branches in urban/ semi urban areas have granted only after ten branches were
established in rural areas/ villages. Four licences were in total granted – two in
Andhra, one in Punjab and one in Gujarat. They have opened with an initial capital of
Rs. 5 crores. A Report issued in 2002 has recommended that the capital should
increased to Rs. 25 crores and that these be permitted to operate in six districts.

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KOTAK MAHINDRA BANK
Kotak Mahindra is one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group
caters to the financial needs of individuals and corporate.
The group has a net worth of over Rs. 2,900 crores, employs around 8,800 people in
its various businesses and has a distribution network of branches, franchisees,
representative offices and satellite offices across 282 cities and towns in India and
offices in New York, London, Dubai and Mauritius. The Group services around 2
million customer accounts.
In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford
Credit International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra
(FCKM) held by Kotak Group.
In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak
Capital and Kotak Securities

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Kotak Mahindra Bank, one of India’s leading private sector banks today announced a
major landmark – opening of its 100th full fledged bank branch in Saket, New Delhi.
This is a record feat as Kotak Mahindra Bank is the only private sector bank in India
which has reached its 100th bank branch in just 4 years, a feat that none of the other
private sector banks in India have achieved till date.
Mr. Uday S. Kotak is an Executive Vice Chairman and Managing Director at Kotak
Mahindra Bank Limited. He has been with the firm since August, 2002. Mr. Kotak is
the principal Founder and Promoter at Kotak Mahindra Finance Ltd. He is responsible
for the growth of Kotak Mahindra from a fledgling finance company to a financial
institution providing the full basket of financial services. Mr. Kotak has over 18 years
of experience in the financial services industry. He is Chairman and Director of Kotak
Mahindra Primus Limited. Mr. Kotak is also Director of Kotak Mahindra Bank
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Limited. He is a Director of Kotak Mahindra Asset Management Company Limited.
He is the Chairman of Kotak Securities Ltd. He is also on the board of the following
subsidiary companies of Kotak Mahindra Bank Limited: Kotak Securities Limited,
Kotak Mahindra Capital Company Limited, and OM Kotak Mahindra Life Insurance
Company Limited. Previously, he has served as Non Executive Director of Blue Star
Limited until October 2002. He is a Member of Advisory Committee of National
Stock Exchange of India Ltd. Mr. Kotak, received a Post-graduate degree in Business
Administration from Jamnalal Bajaj Institute of Management Studies of Mumbai
University
Kotak Mahindra Bank amongst Hewitt’s ‘Top 25 Best Employers’
Mumbai, April 17, 2009: Kotak Mahindra Bank, one of India’s leading private banks
has bagged the Hewitt Best Employer’s in India award for the second time in a row.
Mr. Subhro Bhaduri Executive Vice President-HR, Kotak Mahindra Bank received
the Award. Speaking on the occasion Mr. Bhaduri said, “We are indeed very proud to
be the recipients of the Prestigious Hewitt-Outlook Business ‘Best Employers in
India’ Study for the second time. Our People practices are aligned to our culture and
values and this makes Kotak Mahindra Bank a preferred employer in the industry.
Through significant time, energy and investment in people
Management practices and processes, we have been able to maintain Kotak Mahindra
Bank as one of the Best Employers in India in 2009.”
An independent jury comprising of has selected the Hewitt Best Employer awardees
eminent members from the industry and academic world. The 2009 study also
introduced new research initiatives to evaluate how new dimensions such as personal
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values, CSR, and workplace diversity impact human capital management for business
growth and witnessed participation from over 230 organizations. The views of over
800,000 employees have been represented by over 46,000 employees across India,
making this one of the largest employee research studies conducted in the country.
SOME OF THE IMPORTANT MILESTONES OF KOTAK MAHINDRA
GROUP
1986: Kotak Mahindra Finance Limited starts the activity of Bill Discounting
1987: Kotak Mahindra Finance Limited enters the Lease and Hire Purchase Market.
1990: The Auto Finance division is started
1991: The Investment Banking Division is started. Takes over FICOM, one of India
Enters the Funds Syndication sector

1995: Brokerage and Distribution businesses incorporated into a separate Company -
Kotak Securities. Investment Banking division incorporated into a separate Company
- Kotak Mahindra Capital Company

1996: The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited).
Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for
financing Ford vehicles. The launch of Matrix Information Services Limited marks
the 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 its on-line broking site (www.kotaksecurities.com).
Commencement of private equity activity through setting up of Kotak Mahindra
Venture Capital Fund.

2001: Matrix sold to Friday Corporation Launches Insurance Services
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2003: Kotak Mahindra Finance Ltd. converts to a commercial bank – the first Indian
Company to do so.
2004: Launches India Growth Fund, a private equity fund.
2005: Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra
Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit
Kotak Mahindra. Launches a real estate fund.
Growth Story of Kotak Group

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KOTAK SYMBOL

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KOTAK PRODUCT LINE
SAVINGS ACCOUNTS
Our Savings Accounts are designed to ensure you receive the benefits of quick &
convenient banking transactions along with options for your money to earn high
returns. The savings account goes beyond the traditional role of savings, to provide
you a range of services from funds transfer options to online payments of bills to
attractive returns earned through a comprehensive suite of investment options.`
We have a number of variants of our savings accounts customized to suit your
individual needs so pick the one that matches your requirements & sit back to enjoy
the Kotak experience!
TERM DEPOSITS
Kotak Mahindra Bank brings you Term Deposit at highly attractive interest rates
coupled with special facilities like Overdraft and Re-investment option.
Features & Benefits
Ease and convenience of operation not a Kotak Bank customer and wish to apply for
term deposit online?
For the first time in India, New To Bank customer can also apply online for term
deposit.
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If you are an existing customer, you can place a term deposit through Phone Banking
or Net Banking. What's more, you can even renew this deposit by placing an
instruction over phone. Needless to mention, he can do all this and more by walking
across into any of our branches.
Liquidity through overdraft or sweep-in facility your deposit will be available to you
should you need them in case of an emergency. You can avail up to 85% overdraft
against your term by paying 2% above your deposit rate. This facility is available for
deposits above Rs.50,000 for a tenure of 181 days or more. You can also choose to
link your term deposit to your savings / current account, whereby if need be, your
term deposit will automatically be encased to meet your withdrawal requirement.
No penalty on pre-mature encashment In case your term deposit is pre-maturely
encased, you will earn interest at the rate prevailing on the date of deposit for the
withdrawn amount.
Nomination facility available You can avail this facility for each & every account that
you open with us i.e. nominate different persons for different term deposit accounts.
You can choose to change the nominee through a declaration in the appropriate form
to revise the nomination during the term of the deposit.
In case you are availing the 2-Way-Sweep feature, nomination, if any, made by you in
respect of the savings / current account for which you are availing this feature will be
deemed to be the nomination for any sweep TD created pursuant to the Active Money
feature availed by you.

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DEMAT ACCOUNT
We offer streamlined, efficient depository services that allow you to hold your shares
in convenient, "demat" formats and leverage opportunities in the stock market when
you spot them.
Our services include
 Dedicated and trained Customer Care Officer to handle and answer all your
queries.
 Highly competitive service charges. For the current charges on our demat
services
 Three in one account – Demat, Trading, Bank have all in one account. For
details
 Free Online access to your Demat account
 We also cater to the debt requirements of companies, including the issue of
Commercial Paper, Certificate of Deposits, etc. We also provide a composite
Demat account that can hold Equity shares as well as Government Securities,
Bonds etc.

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LIFE INSURANCE
Kotak Mahindra Old Mutual Life Insurance Ltd.
Kotak Mahindra Old Mutual Life Insurance is a 74:26 joint venture between Kotak
Mahindra Bank Ltd. and Old Mutual plc. Kotak Mahindra Old Mutual Life Insurance
is one of the fastest growing insurance companies in India and has shown remarkable
growth since it’s inception in 2001.
Old Mutual, a company with 160 years experience in life insurance, is an international
financial services group listed on the London Stock Exchange and included in the
FTSE 100 list of companies, with assets under management worth $ 400 Billion as on
30th June, 2006. For customers, this joint venture translates into a company that
combines international expertise with the understanding of the local market.
MUTAL FUND
Kotak Mahindra Asset Management Company Limited (KMAMC)
Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned
subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund
(KMMF). KMAMC started operations in December 1998 and has over 4 Lac
investors in various schemes. KMMF offers schemes catering to investors with

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varying risk - return profiles and was the first fund house in the country to launch a
dedicated gilt scheme investing only in government securities.
We are sponsored by Kotak Mahindra Bank Limited, one of India's fastest growing
banks, with a pedigree of over twenty years in the Indian Financial Markets. Kotak
Mahindra Asset Management Co. Ltd., a wholly owned subsidiary of the bank, is our
Investment Manager.
We made a humble beginning in the Mutual Fund space with the launch of our first
scheme in December, 1998. Today we offer a complete bouquet of products and
services suiting the diverse and varying needs and risk-return profiles of our investors.
We are committed to offering innovative investment solutions and world class
services and conveniences to facilitate wealth creation for our investors.
CAR FINANCE
Kotak Mahindra Prime Limited (KMPL) is a subsidiary of Kotak Mahindra Bank
Limited formed to finance all passenger vehicles. The company is dedicated to
financing and supporting automotive and automotive related manufacturers, dealers
and retail customers.The Company offers car financing in the form of loans for the
entire range of passenger cars and multi utility vehicles. The Company also offers
Inventory funding to car dealers and has entered into strategic arrangement with
various car manufacturers

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HOME LOAN
Why are home loans the best way to materialize your dream? The reasons are simple
and straight-forward. The decision to buy a home is one of the biggest financial
decisions that an individual takes. There are many concerns that an individual
grapples with while considering his requirements, because a home often truly
represents the wholeness of his personality and aspirations. Whatever the purpose of
buying a home is - whether it is a place to reside in, an investment in property to avail
capital appreciation, or a source of rental income, availing a home loan is today the
most convenient and best way to realize one’s dream.
At Kotak Mahindra Bank, we offer highly customized facilities of availing home
loans. Importantly, we appoint a dedicated manager who takes customers through the
entire process, starting with the filling in of the application forms and culminating in
the loan disbursement process. This otherwise seemingly difficult process is made
simpler and more convenient for the customer. Sometimes, customers are unable to
spare that extra time from their hectic schedules, and the Bank Doorstep Service
makes the home buying process seamless and pleasurable. A relationship that is
happy from the start is extended through the attention the customer gets through his
loan repayment tenure and beyond.

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Features & Benefits
The key advantages of Kotak Mahindra Bank Home Loans are:
• High Eligibility for Businessmen
• Doorstep Service
• Attractive Interest Rates
• Simplified Documentation
• Insurance Options to cover your home loans at attractive premium
• Quicker Turnaround time
PERSONAL LOAN
Our quick and easy Personal Loans are called Jaldi Loans. Our Personal Loans help to
make a difference in your life. No matter what your financial needs are - unexpected
expenses, school fees, wedding in the family, home improvement or that long awaited
vacation. Whatever the occasion, our range of Personal Loans can help.
The procedure is simple, documentation is minimal and approval is quick.
Features and Benefits

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Avail loans from Rs.50,000 - 50 lakh*: You can avail of a loan from Rs.50,000 - 50
lakh* for any purpose based on your income and repayment capacity and fulfill all
your financial needs.
Quick approval: With a Jaldi Loan, you are not far away from making your dreams
come true. In as less as 72 hours you can turn your dreams into reality.
Minimal paperwork & hassle free processing: Our minimal document requirements
leave you tension and hassle free. Additionally, worries are kept at bay, as no security
or collateral is required.
Flexible repayment options: Our flexible loan tenors range from 12 - 60 months for
salaried customers and 12- 36 months from businessmen / professionals, which don't
overburden you with a worry to pay heavy EMIs.
Convenience of service at your doorstep: Our Jaldi Loans are just a phone call away;
you can fix an appointment with any of representatives and they could assist you in all
your loan formalities.
Customer privileges:
 If you are a Kotak Mahindra Bank account holder, we have special rates for
you.
 If you are an auto / personal / home loan customer or are a credit card holder
or paying an insurance premium or enjoying an OD/CC facility avail of instant
loans without income documents.

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 If you are an existing Kotak Mahindra Bank Personal Loan customer with a
clear repayment of 12 months or more, we can Top-Up your personal loan.
COMMERCIAL LOANS
FIRST Group (FG) represents the asset arm of Kotak Bank which offers a one stop
shop for all financial needs of customers of Transportation, Logistics, Infrastructure,
and Tractor Industries.
Through our varied products, we commit ourselves to becoming “banker” to the
customer rather than being “asset financier” to our customers.
The FIRST Group’s services offered include :-
PRODUCT PORTFOLIO
 Commercial Vehicle Financing
 Infrastructure Financing
 Tractor and Farm Equipment Financing
 SARAL Loans
 Working Capital Financing
GOLD

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Kotak Mahindra Bank brings you Gold Eternity, 24 Carat pure gold coins and bars,
carrying a 99.99% Assay Certification, signifying the highest level of purity as per
international standards.
• Manufactured in Switzerland by PAMP, one of the world’s premier gold
refiners and a brand recognized world wide as a guarantee of excellence and
quality
• Certified by one of the top assayers in the world
• Tamper proof packaging to ensure the purity of the gold bar
• Unique number on every certicard, with records maintained in Switzerland
• Competitive pricing based on daily pricing in the international bullion market
Kotak Gold Eternity come to you in varied denominations. You can choose
from a range of coins and bars in 5gm, 8gm, 20gm, 50 gm and 100 gm.
CURRENT ACCOUNT
At Kotak Mahindra Bank, we know how critical it is for your business to have quick
and timely access to funds. We also understand how important smooth and seamless
banking transactions are for business relationships.
Our Current Accounts have been designed to help you compete effectively in the
contemporary business environment. They include a 2 Way Sweep feature that
delivers liquidity combined with higher returns.

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Features and Benefits
• Minimum Account Balance required is Nil
• 2 Way Sweep for liquidity and higher returns
• Free-up country cheque collection for 13 locations
• Personalised Cheque book
KOTAK CREDIT CARDS
FORTUNE GOLD CARD
INTEREST FREE CASH WITHDRAWALS

ZERO CHARGE EMI
2.5% FUEL SURCHARGE WAIVER
0% BALANCE TRANSFER
FREE FOR LIFE
TRUMP GOLD CARD
10% CASH BACK ACROSS ALL RESTAURANTS

10% CASH BACK ON MOVIES AND PLAYS
ZERO CHARGE EMI
2.5% FUEL SURCHARGE WAIVER
FREE FOR LIFE
LEAGUE PLATINUM CARD
EXCLUSIVE DINING BENEFITS AT THE TAJ

AUTO ENCASHMENT OF REWARD POINTS
SMS US AND WE WILL REACH YOU
LOST OR STOLEN CARD FRAUD COVER
ROYALE SIGNATURE CARD

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SPECIAL CONCIERGE SERVICES TO ASSIST YOU
ENJOY GOLF PRIVILEGES WORLDWIDE
AUTO ENCASHMENT OF REWARD POINTS
LOST OR STOLEN CARD FRAUD COVER
EXCLUSIVE DINING BENEFITS AT THE TAJ

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Project at glance:
“COMPARATIVE ANALYSIS OF KOTAK MAHINDRA BANK SALARY

ACCOUNT WITH ITS COMPETITORS”
Objective:
The main of the present study of is accomplish the following objective.
 Proper understanding and analysis of banking industry.
 To know about brand awareness of Kotak Mahindra Bank and
customer’s preference about Kotak Mahindra Bank.
 Conduct market survey on a sample selected from the customer and
derived opinion on that research.
 Along with it I will be gaining the thorough knowledge of banking
sector. This will give me in more confidence in marketing products
given to me.
 As the Kotak Mahindra Bank well reputed bank in India it’s great
chance for me to observed different products launch by other
competitor companies like ICICI BANK, HDFC BANK etc.

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RESERVE BANK of INDIA
Establishment
The Reserve Bank of India was established on April 1, 1935 in accordance with the
provisions of the Reserve Bank of India Act, 1934.
The Central Office of the Reserve Bank was initially established in Calcutta but was
permanently moved to Mumbai in 1937. The Central Office is where the Governor
sits and where policies are formulated.
Though originally privately owned, since nationalization in 1949, the Reserve Bank is
fully owned by the Government of India.
Main Functions
Monetary Authority:
 Formulates, implements and monitors the monetary policy.
 Objective: maintaining price stability and ensuring adequate flow of credit to
productive sectors.
Regulator and supervisor of the financial system:

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 Prescribes broad parameters of banking operations within which the country's
banking and financial system functions.
 Objective: maintain public confidence in the system, protect depositors'
interest and provide cost-effective banking services to the public.
Manager of Foreign Exchange
 Manages the Foreign Exchange Management Act, 1999.
 Objective: to facilitate external trade and payment and promote orderly
development and maintenance of foreign exchange market in India.
Issuer of currency:
 Issues and exchanges or destroys currency and coins not fit for circulation.
 Objective: to give the public adequate quantity of supplies of currency notes
and coins and in good quality.
Developmental role
 Performs a wide range of promotional functions to support national objectives.
Related Functions
 Banker to the Government: performs merchant banking function for the
central and the state governments; also acts as their banker.
 Banker to banks: maintains banking accounts of all scheduled banks.

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HIERARCHY OF RBI

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MARKETING OF KOTAK
Marketing at Kotak Mahindra Bank categorizes in to four departments - Marketing
Communications, PR & Corporate Communications, Marketing Activation &
Marketing Operations. These departments act as an advisory and support channel
towards marketing strategies and PR planning to ensure effective brand building
through brand awareness and visibility. The objective is to implement effective
campaigns and promotions which would help in meeting the business targets and
getting media coverage for the same.

40
We provide support at two broad levels - Branch Marketing and Central Marketing.
Marketing Activation
All marketing activities done at a branch level come under branch marketing. This
may be in the form of new branch launches, branch based events, sales promotions,
merchandising, and creation of any marketing collaterals for the branches. Branch
centric PR & outdoor support also comes under the branch marketing.
Promotion Documents
Promotion proposal
Please fill the promotion proposal once the branch finalizes a promotional activity
Provide a description of the activity that you wish to undertake.
Please mention if any Special Offers like AQB waiver etc are required. (For all AQB
related offers approvals from Amit Pathak, & Amresh Mohan are necessary.)
Other details like Venue, activity period needs to be filled in correctly.
If you need any marketing or promotion material please specify the correct quantity
Detail out planned cost break up for any sponsorship or manpower that you need for
the activity.
Give the planned promotion output in form of planned leads and conversions. We can
then match them with the actual leads and conversions post the activity.
Branch Manager or any relevant authority needs to approve the activity.

41
To download a copy of a promotion proposal please click here
Promotion Codes
Promotion codes are generated to track the efficiency of the activity. Marketing
generates the code once the activity is approved.
Marketing Communications
Marketing Communications takes care of the creation, rollout and analysis of all
national campaigns at the brand and product level. This includes doing various brand
and product campaigns as well as researches to monitor the growth of the brand and
the campaign deliveries. This department also takes care of creative conceptualization
and rollout of all regional requests (events, promotions, contests, campaigns) Central
marketing also provides support to both the product team and the branches in terms of
conceptualizing and standardizing marketing collaterals. These include standard
branch collaterals like posters, banners, e-mailers, brochures etc.
Process for all Marketing Collaterals
Please fill in the creative brief with all relevant details which will help us to
understand your requirements and design appropriate collaterals for you. Please
ensure that the creative brief is filled in detail so that the creative team gets an
accurate understanding of the requirement. Partially filled briefs / requests without
creative brief will not be entertained.

42
After receiving the creative brief marketing would come up with design of the
collaterals and share it with the concerned team
All collaterals will be subject to compliance/legal approval
Post compliance/legal approval the collaterals would be put into print.
Post campaign you are requested to send the details of the leads captured / business
sourced, so that we can have an understanding of the effectiveness of the campaigns.
All regional requests need to be routed through the respective Regional Marketing
Manager for that region.
COMPETITORS
HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
43
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion
(US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year
ended March 31, 2009. The Bank has a network of 1,471 branches and about 4,721
ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and affiliates in
the areas of investment banking, life and non-life insurance, venture capital and asset
management.
SBI BANK

44
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later the bank received its charter and was re-designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of
British India sponsored by the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These
three banks remained at the apex of modern banking in India till their amalgamation
as the Imperial Bank of India on 27 January 1921.
Primarily Anglo-Indian creations, the three presidency banks came into existence
either as a result of the compulsions of imperial finance or by the felt needs of local
European commerce and were not imposed from outside in an arbitrary manner to
modernize India's economy. Their evolution was, however, shaped by ideas culled
from similar developments in Europe and England, and was influenced by changes
occurring in the structure of both the local trading environment and those in the
relations of the Indian economy to the economy of Europe and the global economic
framework.
AXIS BANK
Axis Bank was the first of the new private banks to have begun operations in 1994,
after the Government of India allowed new private banks to be established. The Bank

45
was promoted jointly by the Administrator of the specified undertaking of the Unit
Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e.
National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 359.76 crores with the public
holding (other than promoters) at 57.79%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at
Mumbai. The Bank has a very wide network of more than 853 branches and
Extension Counters (as on 30th June 2009). The Bank has a network of over 3723
ATMs (as on 30th June 2009) providing 24 hrs a day banking convenience to its
customers. This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to
adopting the best industry practices internationally in order to achieve excellence.
SOME OTHER COMPETITORS ARE……….

46
47
Features & Benefits - Kotak Ace Salary Account
EDGE Privileges
You need a savings avenue that makes the most of your hard-earned money. We offer
you the Kotak Edge Salary Account, armed with Kotak ActivMoney and our entire
gamut of Banking Privileges. The feature rich Kotak Edge Salary Account is the ideal
way to make your money work harder.
Activ Money
Your Kotak Edge Salary Your Kotak Ace Salary Account combines liquidity of a
Savings Account with the attractive returns of a Term Deposit through the unique
Kotak Activ Money benefit.
Kotak Advantages
Your Ace Salary account comes to you with a host of advantages that are aimed at
providing you a superior Banking experience.
• Free At-par Cheques
Kotak Mahindra Bank's At-par cheques are treated as 'local clearing' cheques
across select locations in the country. The At-par Cheque facility comes to you
'free' of charge. You can now save DD making charges while enjoying the
convenience of a cheque.

48
• Free Demand Drafts
Avail Demand Drafts, free of cost, payable at any location in India, up to a
pre-specified limit, just by calling our Phone Banking Service.
• Free Cheque Collection
Outstation cheques, drawn on any of our branch locations, would be collected
'free of charge' for you. Only a nominal charge is levied for non-branch
locations.
• Free Electronic Fund Transfer Transfer
Transfer funds to third party accounts in other banks, without drawing a
Demand Draft or a cheque, by using our Electronic Fund Transfer facility.
With this facility you can save on Demand Draft making/couriering charges
and also transfer funds faster!
• Bill Pay Services
This service enables you to make your Utility Bill payments like electricity,
telephone and mobile phone bills.
Ace Privileges

49
Your Ace account has been designed with exclusive benefits that give an extra fillip
to your banking experience.
• Free Demat Account
As an Ace Savings customer, you can also open a Demat Account with us
‘free’ of charge.
• Reimbursement Current Account
As Salary account holders employees can also opt for a Reimbursement
account which helps you to manage the official reimbursements, petty cash
etc., this facility specifically will help you eliminate cash handling related to
petty expenses
• Family Savings Accounts
Your Ace account allows you to now extend the Kotak banking experience to
three of your family members. The Family Savings Accounts come to you
with a host of benefits like Kotak ActivMoney, At-par Cheque facility and
other attractive features. So now even your dear ones can enjoy banking the
'Kotak way'!
• Your savings account will be provided a link to your online trading account
with Kotak securities to enable your to transfer funds from your bank account
to your account with KS and vice versa". And with our Payment Gateway
facility you can even pay your trading bills online from your bank account
directly.
50
• Free Investment Account
Avail a ‘free’ Investment Account that provides you a consolidated view of all
your investments. The Investment Account statement gives a 'single window
view' of your Mutual Fund portfolio, listing the NAV of each scheme invested
into, current consolidated value of your portfolio, and realized/unrealized
returns against each investment made.
• Personal Investment Advisor
To identify and analyse your specific investment requirements we provide you
a dedicated Personal Investment Advisor. This person alerts you to investment
opportunities, sends you regular updates and feedback on the performance of
your investments, helping you monitor, manage and grow your wealth in the
ever fluid investment climate.
Convenience Banking
A host of Convenience Banking facilities allow you to access your account anytime,
anywhere.
• Global Debit Card

51
Access your account free of cost at any VISA ATM in India or abroad using
your Global Debit Card. You can use your Debit Card at all VISA affiliated
merchant establishments worldwide. As an Ace Savings account holder you
can gift free add-on cards to your family members too.
• Phone Banking
Dial our 24 hour Toll Free number 1800 116022 (North India) OR 1800
226022 (Rest of India) from anywhere and our customer Care Officer will
help you instantly with your banking requirements.
• Net Banking
Just log on to www.kotak.com to access our Net Banking facility. Take
advantage of the Internet to bank from home, office or anywhere in the world
at a time of your convenience.
• Mobile Banking & Alerts
Use this service to access your bank account anywhere, anytime! It is quick
and easy, available to you 24X7 and it’s absolutely free! You don’t have to
pay any charge to avail this service. You can use Mobile Banking to check
account balance, last 3 transaction details, issued cheque status and request a
cheque book. You can use Alerts Service to get Alerts by SMS and / or email
whenever a debit or credit above any amount specified by you happens to your
account.

52
SALARY ACCOUNT FEATURES OF KOTAK AND OTHERS

53
S.NO. Column1 Column1
S. FEATURE SALARY2WEALTH
NO S
1 Minimum 17,000 10,000 12,000
Average Salary
2 Minimum 20 10 25
Number Of
Employees
3 Reimbursement YES YES YES
Account
4 Term Deposit YES, Sweep In Yes but only YES: But not
Sweep threshold of Rs sweep In automated
20,000 & Sweep Out
at Rs 10,000,
Automated, 2 way
sweep
5 Investment Available to all NA NA
Account employees
6 Investment Available to all Only to selective Only to
Advisory employees customers- selective
Services Available to all customers-
Available to all
7 Account Monthly Free Quarterly Free Quarterly Free
Statements
8 Free Online Bill YES YES YES
Payments
9 Salary Alerts on YES YES YES
Mobile
10 Net Card YES NA NA
11 Account In a week's time. In a week's time- Instant
Opening & ( can provide instant Instant kit
Welcome Kits kits only for selective facility
CAT A companies)
12 Online Purchase/ Redeem NA NA
Investment Mutual fund of 23
AMCs

54
SWOT ANALYSIS OF KOTAK MAHINDRA BANK
COMPETITIVE ADVANTAGE
SWOT ANALYSIS
Environmental Scan
Internal Analysis External Analysis
Strength Weaknesses Opportunities Threats
SWOT Matrix
STRENGTHS
1. The Kotak Mahindra group which is one of the largest financial instiutions in
India, ever since its inception in 1986 the Kotak Mahindra group has created
numerous success stories in whatever business they landed. It gives kotak
mahindra insurance company an advantage to enjoy the already existing
goodwill of kotak mahindra group.
2. The kotak Mahindra bank providing good personalized service to their salary
account, they give salary account according to the need of the customer.

55
3. Kotak Mahindra Company has been rewarded with Kotak Mahindra Bank
amongst Hewitt’s ‘Top 25 Best Employers’ this depicts the actual
performance of the organization in terms of its efficiency.
4. The company spends less on marketing so it actually has more finances
available to sustain the growth of the company and provide better returns to
the customers.
5. Kotak Mahindra bank offers the most flexible, innovative unique products
and features such as free Global Debit Card, Active Money which surely
gives it a competitive edge over the competitors.
6. The distribution channel is amazing with a wide reach as the company has
offices all over India in more than 60 cities.

56
WEAKNESS
1. The company does not spend much on marketing and it actually may
be a reason for not being a market leader among the private players.
2. The company has yet to make any significant presence in the rural
sector as the brand name is yet not famous in the rural India.
3. The company has a conservative approach and they believe in steady
and very safe progress , which actually results them to be in a position where
they are behind some of the more aggressive market players like ICICI
4. In India the rural market and middle class society still don’t have faith
in private insurers and their genuinity.
5. Kotak Mahindra bank offers have very less no of branch and ATM.
OPPORTUNITIES
1. The whole rural market is a kind of niche segment for opening of accounts,
deposits, borrowings, and insurance business. So, kotak is at par with all
other private companies and the its an equal competition for all, there is an
opportunity to make a mark and be the first among the private bank and
capture the rural market.

57
2. The Kotak being such a big name has an opportunity to grow its insurance
business as well increase its distribution channel whole over the world by
using the goodwill of the group companies and they can even target the
customers of each company of their group to get insurance through them by
offering special incentives or schemes.
3. The good showing at the stock markets and growing Indian economy
enables the kotak company to give better .
4. The kotak Mahindra should come also lover segment.
THREATS
1. The rural India and middle class India still do not have faith in private players.
2. The Kotak Mahindra bank is competing with private companies, which are
spending huge amounts on marketing, so to maintain a competitive edge with
these companies in terms of acquiring market shares would be a tough task.
3. Now a day’s every cost is very important feature for Kotak, bank should
reduce the cost and control the pricing.

58
ISSUES AND CHALLENGES FOR THE COMPANY:
1. The company doesn’t spend much on marketing and it actually may be a
reason for not being a market leader among the private players.
2. The company has yet to make any significant presence in the rural sector
as the brand name is yet not famous in the rural India.
3. The company has a conservative approach and they believe in steady and
very safe progress , which actually results them to be in a position where
they are behind some of the more aggressive market players like ICICI
4. In India the rural market and middle class society still don’t have faith in
private bank and their genuinity
The kotak mahindra bank is competing with private companies which are spending
huge amounts on marketing, so to maintain a competitive edge with these companies
in terms of acquiring market shares would be a tough task.

59
RESEARCH OBJECTIVE
Our main objective was to find out that customer are satisfy with their salary account
or not. The main problem was how they use banking service. On which area bank
need improvement. The accountholder is happy with the services provided by bank.
To get all information a thorough planning had to be done, so I first started with
designing the questionnaire for the clients whom I was going to target and to know
about their investment pattern. The main things to be known from the clients were:
1. Are they happy with bank
2. Which channel they use
3. Other product they use
4. area of improvement
Research Methodology:
Research Methodology is the basic framework, which provides guidelines for the rest
of the research process and a way to systematically solve the research problem. It is a
60
map or a blue print according to which the research is to be conducted. The research
methodology specific to this project is as follows.
Type of Research
Research type for this project includes surveys and fact-finding enquiries of different
kinds. The research aims at gathering information about effectiveness of Promotional
strategies of Kotak Mahindra Bank.
Research Requirement
A research design is master plan specifying the methods and procedures for
collecting and analyzing the needed information. Here is our project we adopted the
descriptive (sample survey) and analytical research method.
Research instrument
There is various way of research instrument of collecting primary data, the various
methods are:-
1. Questionnaires.
2. Psychological tools.
3. Mechanical Devices.
4. Qualitative Measures.

61
From the above mentioned research instruments I had used only Questionnaires
technique to find out the various information about the clients such as their turnover,
chartered accountant, investment behaviors, who is their financial consultant etc. And
this was the technique which I felt the best way to extract information about the client.
Sampling Plan
Like in many marketing research project where making a census study of the entire
universe would be impossible an account of limitations of time and money. Hence
sampling becomes inevitable, in the study also, sampling is done to gather
information from the market place. However the success of the sample truly
represents that of the universe.
Sample size
100 questionnaires for Kotak Mahindra Bank customers.
Data collection Method
Data collection is an elaborate process in which researcher makes a planned search for
all relevant information. Here in this project we have used both the primary and
secondary data.
Major company we take
Business Standard Limited
Franchise India Holdings Ltd.
Pen 2 Print

62
Primary data: Questionnaire
Secondary data:Kotak Mahindra Bank Website
ICICI, HDFC Bank Website
Books

63
Q1. How do you find the salary account provided by Kotak Mahindra Bank?
Q2. Do you have any other product of Kotak Mahindra Bank except Salary Account
(like Term Deposit, Demat Account, Insurance, Mutual Fund, Home loan, Personal
loan, car loan, etc)?

64
Q3. Are you satisfied with your salary account?
Q4.Which channel you use to Access your Account?

65
Q5. Are you satisfied with your Relationship Manager Service?

66
Q6. Do you receive updates on new product feature, various investment products
offering?
Q7. What are the area of improvement?

67
68
FINDING
 According the survey people are satisfied with their salary account
they are happy with the product and offerings.
 Salary account customer do not have third party product like Term
Deposit, Demat Account, Insurance, Mutual Fund, Home loan,
Personal loan, car loan, etc).
 Salary account customer are not satisfy with the service of bank and
the service provide by the relationship manager
 Very less people are using Mobile or SMS banking

69
CONCLUSION AND RECOMMENDATION
 The customer of Kotak Mahindra Bank is highly satisfy with the product and
service of the bank means bank have done good work on that.
 The very first thing that Kotak Mahindra Bank required to increase the
infrastructure means bank need to open new branches across the india.
 Now Kotak Mahindra Bank is well known brand in the financial market so
bank have to enter in the mass banking
 Apart from premier banking Kotak Mahindra Bank have to increase the reach
and come on lower segment.
 Urban market is saturated now bank have to focus on to the rural market

70
REFERENCES
In order to obtain more information regarding the present study and to substantiate it
with theoretical proof, the following references were made
Websites visited:
www.kotak.com
www.rbi.org.in
www.google.com
www.icicibank.com
www.hewittasia.com
MAGAZINES:
 BUSINESS TODAY

71
72
QUESTIONNAIRE CORPORATE SALARY ACCOUNTS
1 How do you find the salary account provided by Kotak Mahindra Bank?
(a)Excellent (b) Very Good (c) Good (d) Satisfactory (e)

Poor
2 Do you have any other product of Kotak Mahindra Bank except Salary
Account (like Term Deposit, Demat Account, Insurance, Mutual Fund,
Home loan, Personal loan, car loan, etc)?
(a) Yes (b) No
3 Are you satisfied with your salary account?

(a) Yes (b) No
4 Which channel you use to Access your Account?

(a) Direct Branch (b) Phone Banking (c) Net Banking (d) Mobile Banking
5 Are you satisfied with your Relationship Manager Service?

(a)Yes (b) No
6 Do you receive updates on new product feature, various investment

product offering?
(a)Yes (b) No
7 What are the area of improvement

(a) Service (b) Product (c) RM (d) Technology (e)Updates.
8 Suggestions:
………………………………………………………………………...
…………………………………………………………………………
NAME :.…………………………………………..
COMPANY :……………………………………………
73
CELL NO. :……………………………………………
SIGNATURE :……………………………………………

74

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COMPARATIVE ANALYSIS OF KOTAK MAHINDRA BANK

SALARY ACCOUNT WITH ITS COMPETITOR’S

A report submitted to Accurate Institute of Management and Technology, Greater

Submitted to: Submitted by:

Dr. RAJEEV BHARDWAJ RISHI KAPOOR

PGP CELL, AIMT PGDM 08-10

Greater Noida. ROLL NO- DM08078

ACCURATE INSTITUTE OF MANAGEMENT AND TECHNOLOGY

49, Knowledge Park III, Greater Noida-201306.

FOR MORE DETAIL ABOUT THE PROJECT

Accurate Institute of Management and Technology, Greater Noida

degree of PGDM from the Accurate Institute Of Management & Technology is an

College: Accurate Institute of Management &

Accurate Institute of Management and Technology, Greater Noida

List of Tables 4-5

History of banking 9-10

Banking system in India 11-15

Kotak Mahindra bank 16-21

Kotak Product Line 22-32

The Reserve Bank of India 35-37

Features and Benefits - Kotak Ace Salary Account 45-49

Salary Account Features of Kotak And Others …50

SWOT Analysis of Kotak Mahindra Bank 51-54

Accurate Institute of Management and Technology, Greater Noida

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

OF KOTAK MAHINDRA BANK SALARY ACCOUNT WITH ITS COMPETITOR

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

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

Accurate Institute of Management and Technology, Greater Noida

NAME OF TABLE Page no

SOME OF THE IMPORTANT MILESTONES OF KOTAK MAHINDRA

SALARY ACCOUNT FEATURES OF KOTAK AND OTHERS 50

Accurate Institute of Management and Technology, Greater Noida

To answer these questions it is necessary to step back into history – to several

thousands of years and study its origins.

barter system surrendered to money.

common denominator to facilitate exchange of products to satisfy needs. The

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

goods and to trade, banking was born.

Romans as a mint for their coins.

Assyrians, Babylonians and Ancient Greeks practiced simple forms of banking –

Accurate Institute of Management and Technology, Greater Noida

had such as eagle, crossed swords etc.

BANKING SYSTEM IN INDIA

The Banking System in India consists of :

 Public Sector Bank.

 Private Sector Banks

 Regional Rural Banks

The Reserve Bank of India

the Reserve Bank of India Act 1934. It was nationalized in 1948.

 The banker to the Government of India and the State governments. It

business of the Central Government. It undertakes to accept money on

Accurate Institute of Management and Technology, Greater Noida

the Reserve Bank of India.

to ensure price stability.

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

Agriculture and Rural Development. A former development bank, the Industrial

with commercial banks.

Public Sector Banks

Accurate Institute of Management and Technology, Greater Noida

serve the developmental needs of all sectors of the economy.

These are branches of banks incorporated outside India.