Report on Summer Training

Customer Attrition And Methods to Prevent Attrition

In partial fulfillment of the Requirements for the award of Degree of Master of Business Administration Batch 2010 - 2012

Submitted to: Tarun Vashisth Assistant Professor UNIVERSITY BUSINESS SCHOOL PANJAB UNIVERSITY REGIONAL CENTRE LUDHIANA

Submitted by: Shiwali Gupta Roll No.24

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CERTIFICATE OF ORIGIN

This is to certify that Ms. Shiwali Gupta, a student of MBA from University Business School, PURC, Ludhiana has worked in the Kotak Mahindra Bank, sec-9C, Chandigarh, under the guidance and supervision of Mr. Saurabh Ghosh, Area Head and Mr. Aditya Uppal, Service Manager for the purpose of Summer Training Program under the project title of Customer Attrition and Methods To Prevent Attrition. The period for which she was on training was for 8 weeks, starting from 9th May 2011 to 2nd July 2011. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in MBA Program. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on internal database of the branch.

Signature (Project-Incharge)

ACKNOWLEGDEMENT
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The satisfaction that accompanies the successful completion of any task would be incomplete without the mention of people whose ceaseless co-operation made it possible, whose constant guidance and encouragement crown all efforts with success. I take this opportunity to express my profound sense of gratitude and thankfulness to Mr. Uday Kotak (Executive Vice Chairman & Managing Director) and Mr. Saurabh Ghosh (Area Head) for making me a part of Kotak Mahindra Bank Limited. I would like to thank Mr. Aditya Uppal (Service Manager), my company guide for involving me in Retail Banking project and providing me constant understanding and assistance. I acknowledge him for his inspiration, motivation and his guidance towards solving a problem. I would also like to thank Mr. Shashi Kapoor, Summer Placement Coordinator and Mr. Tarun Vashisth, my Faculty Guide for his vital encouragement and support in every way. He was there to provide assistance whenever needed. I would also like to thank all the faculty members of my college and the staff of Kotak Mahindra Bank for their help and support in every way. Most especially I am thankful to my family who have been a source of inspiration for me from the very beginning of my life and to GOD who made all things possible.

TABLE OF CONTENTS

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CHAPTER

PARTICULARS EXECUTIVE SUMMARY

PAGE NO. 5 7 11 17 18 27 29 30 63 65 66 67 69 76

1. 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 3. 4. 5.

INTRODUCTION TO SUBJECT INTRODUCTION TO INDUSTRY OVERVIEW OF INDUSTRY PROFILE OF THE ORGANIZATION HISTORY RECENT ACHIEVEMENTS PRODUCT RANGE ORGANIZATIONS PERFORMANCE FUTURE PROSPECTS/PLANS SWOT ANALYSIS OF ORGANIZATION OBJECTIVE, SCOPE AND LIMITATIONS DATA PRESENTATION, ANALYSIS AND INTERPRETATION SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.

BIBLIOGRAPHY

79

EXECUTIVE SUMMARY

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Kotak Mahindra is one of the leading financial organizations, offering a wide range of financial services that encompass every sphere of life. From commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, Kotak Prime car loans the group caters to the diverse financial needs of individuals and corporate. I have taken a project on Customer Attrition and Methods to Prevent Attrition which involves the functional area of Customer Relationship Management. The main aim of this project is CASA REVIVAL which means to revive those Current and Savings Accounts of the customers who have stopped banking with the bank due to some reason or other. As they have not being maintaining the accounts their balances have gone into negative on account of Non Maintenance Charges (NMC). The project aims at customer relationship revival by asking them to start banking. This required me to understand the product being offered by the bank viz. a viz. the competition. The project was divided into two phases having both the Savings as well as Current Accounts to call upon. The first Phase had data of those clients whose Negative balances were reversed and their account zeroised basis their banking history and their interest in the First Phase of CASA Revival Campaign. And the Second phase had the data of clients whose accounts have gone into Negative balance in recent past. The report is basically generated by using the stated Secondary Data i.e. database already prepared by the bank for the sake of CASA Revival Campaign. The clients were asked to either start maintaining the average quarterly balance (AQB) of their respective accounts OR to do at least Two transactions in savings account and Five transactions in current account in a month.

Following steps which have been taken to complete the project are: Organizing database under two categories i.e. Savings Accounts and Current Accounts. Page | 5

 Study of the product offerings of the Bank and competition in the above segments. Finding out the reasons for Customer Attrition Process i.e. what are the reasons that might have forced customers to stop transacting with the bank. Seeking guidance from the associate person to provide solutions to the clients. Calling the customers for reviving their accounts and informing them of the USPs of the Banks viz. a viz. the competition while updating them on the features of the campaign. Framing the spread sheet of interested / non interested customers and updating the same in banks database. Visiting the clients Office to collect the required documents to start the banking relationship and enhancing business for the bank. The output generated by CASA Revival campaign helped the bank to revive 68 accounts and generate a value of Rs.40, 00,000/Taking into consideration the various Loopholes few Recommendations are also generated targeting improvement in the Banks Business and Percentage of CASA of the same.

INTRODUCTION TO THE SUBJECT

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 MEANING CASA accounts i.e. CURRENT ACCOUNT and SAVINGS ACCOUNT are an attempt to combine savings and checking accounts to entice customers to keep their money in the banks. In Current Account we dont pay any Interest. The current account portion pays no or very low interest, while the savings portion pays an above average return. Moreover in Savings Account we pay a return of 4% per annum, calculated on per day basis. Current Account proportion in bank help to generate more income as bank does not have to pay any interest. They are offered free or for a fee depending on minimum or average balance requirements. A form of CASAs have begun to emerge in the United States as well, as the banking institutions attempt to limit the disintermediation that occurs when bank-deposit interest is lower than other available short-term investments. These deposits tend to be cheaper than the bank issuing certificates of deposit (CDs) and are considered more dependable as well. CASA RATIO CASA stands for current and savings account. Different kinds of deposits current account, savings account and term deposits form the major source of funds for banks. The CASA ratio shows how much deposit a bank has in the form of current and saving account deposits out of the total deposit. Kotak Mahindra Bank Limited is presently having 31% of CASA share. HOW IS IT IMPORTANT FOR BANKS? A higher CASA ratio means higher portion of the deposits of the bank has come from current and savings deposit, which is generally a cheaper source of fund. None of the bank pay interest on the current account deposits and money lying in the savings accounts attracts a mere 4% interest rate. Hence, higher the CASA ratios better the net interest margin, which means better operating efficiency of the bank. Net interest margin is difference between total interest income and expenditure and is shown as a percentage of average earning assets. Higher income from CASA will improve the net interest margin as the cost of this fund is relatively lower. For instance, most banks lend at over 10%, Page | 7

whereas, the rate of interest that they pay on saving deposit is just 4%. However, actual realization depends on other expenditure, too. CUSTOMER ATTRITION Customer attrition, also known as customer churn, customer turnover, or customer defection, is a business term used to describe loss of clients or customers. Banks usually make a distinction between voluntary churn and involuntary churn. Voluntary churn occurs due to a decision by the customer to switch to another banking institution, involuntary churn occurs due to circumstances such as a customer's relocation, death, or the relocation to a distant location. In most applications, involuntary reasons for churn are excluded from the analytical models. Analysts tend to concentrate on voluntary churn, because it typically occurs due to factors of the company-customer relationship which companies control, such as how day to day interactions are handled or how effectively the officials manage the relationship. When companies are measuring their customer turnover, they typically make the distinction between gross attrition and net attrition. Gross attrition is the loss of existing customers and their associated recurring revenue during a particular period. Net attrition is gross attrition plus the addition of similar customers at the original location. Financial institutions often track and measure attrition using a weighted calculation called Recurring Monthly Revenue (or RMR). In the 2000s, there are also a number of business intelligence software programs which can mine databases of customer information and analyze the factors that are associated with customer attrition, such as dissatisfaction with service or technical support, billing disputes, or a disagreement over company policies. More sophisticated predictive analytics software use churn prediction models that predict customer churn by assessing their propensity of risk to churn. Since these models generate a small prioritized list of potential defectors, they are effective at focusing customer retention marketing programs on the subset of the customer base that are most vulnerable to churn. In discussing customer attrition, there are a couple of points on which there is general agreement: First, it is more cost-effective to retain customers than to acquire new ones. Page | 8

Second, and perhaps less understood, is that poor customer service causes many customers to defect, oftentimes even more so then the price component--at the chagrin of management. However, very few customers voice their concerns, but simply move over to the competition, so this is hard to track. To improve loyalty and retain customers it is necessary to understand drivers of loyalty and defection from the customers viewpoint. An organization must develop a loyalty strategy and focus it on the right customer. They should systematically deliver what the customer values and fix it quickly if they are unable to deliver. The organization should have proper measurement and reward systems to encourage customer-centric behavior.

Emotions play a greater role than quality or price in the decision to defect. People leave a company because they are ignored or not treated well. Also, only a small percentage of customers complain before they leave--most don't bother because the barriers to switching are often low.

CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processesprincipally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.

BENEFITS OF CRM A CRM system may be chosen because it is thought to provide the following advantages: Page | 9

Quality and efficiency Decrease in overall costs Decision support Enterprise agility Customer Attention

INTRODUCTION TO INDUSTRY
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CONCEPTUAL FRAMEWORK OF BANKING In modern age, banking constitutes the fundamental basis of economic growth. Earlier the function of bank was restricted to accepting deposits and advancing loans to the general public. But now the definition of bank has changed. It refers to an institution that deals in money. Besides dealing in money, banks these days perform various other functions like credit creation, agency function, general service, etc. Banks can now be called the nerve-centre of the countrys capital market, industrial as well as trading activities.

INDUSTRY PROFILE For more than three decades the banking sector in India has exceptional achievements. The most striking is its extensive reach. It is not only metropolitan and cosmopolitan cities; it has reached every remote corner of the country. This has led to tremendous growth in the banking sector. Earlier one to had wait for hours to get simple things done like withdrawing cash, making a draft etc. But now such activities are just a click away from you. The Reserve Bank of Indias (RBI) role in achieving such milestones has been remarkable. There are three main phases in the Indian Banking sector, these are: Early phase of Indian Banks from 1786 to 1969 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.

INTRODUCTION TO RBI (RESERVE BANK OF INDIA)

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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. PREAMBLE The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." CENTRAL BOARD The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act.

Appointed/nominated for a period of four years Constitution: Official Directors Full-time : Governor and not more than four Deputy Governors Non-Official Directors Nominated by Government: ten Directors from various fields and one government Official Others: four Directors - one each from four local boards

Functions: General superintendence and direction of the Bank's affairs.

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LOCAL BOARDS

One each for the four regions of the country in Mumbai, Calcutta, Chennai and New Delhi Membership: consist of five members each appointed by the Central Government for a term of four years

Functions : To advise the Central Board on local matters and to represent territorial and economic interests of local cooperative and indigenous banks; to perform such other functions as delegated by Central Board from time to time. FINANCIAL SUPERVISION The Reserve Bank of India performs this function under the guidance of the Board for Financial Supervision (BFS). The Board was constituted in November 1994 as a committee of the Central Board of Directors of the Reserve Bank of India. Objective Primary objective of BFS is to undertake consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies. Constitution The Board is constituted by co-opting four Directors from the Central Board as members for a term of two years and is chaired by the Governor. The Deputy Governors of the Reserve Bank are ex-officio members. One Deputy Governor, usually, the Deputy Governor in charge of banking regulation and supervision, is nominated as the Vice-Chairman of the Board.

CURRENT FOCUS

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Supervision Of Financial Institutions Consolidated Accounting Legal Issues In Bank Frauds Divergence In Assessments Of Non-Performing Assets And Supervisory Rating Model for Banks.

TRAINING ESTABLISHMENTS Have six training establishments

Three, namely, College of Agricultural Banking, Bankers Training College and Reserve Bank of India Staff College are part of the Reserve Bank Others are autonomous, such as, National Institute for Bank Management, Indira Gandhi Institute for Development Research (IGIDR), Institute for Development and Research in Banking Technology (IDRBT)

PHASE I

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The General Bank of India was set up in the year 1786. Next, came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established, which started as a private shareholders bank, mostly European shareholders. In 1865, Allahabad Bank was established, for the first time, exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase, the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965) PHASE II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiaries of State Bank of India were nationalized in 1960. On 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalized. Second phase of nationalization or Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: Page | 15

1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crores.

PHASE III This phase has introduced many more products and facilities in the banking sector. As a reform measure, a committee was set up in 1991 under the chairmanship of M Narasimhan. It was called the Narasimhan Committee and it worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking has been introduced. The entire system has become more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macro economics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regimen, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure. Currently overall, banking in India is considered as fairly mature in terms of supply, product range and reach. Even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility-without any stated exchange rate-and this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector, the demand for banking services-especially retail banking, mortgages and Page | 16

investment services are expected to be strong. M&A s, takeovers, asset sales and much more action (as it is unraveling in China) will happen on this front in India. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them. Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive Page | 17

players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India act as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc. unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. in order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients.

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Complementing the roles of the nationalized and private banks are the specialized Financial Institutions (MFI) or Non Banking Financial Institutions (NBFCs). With their focused portfolio of products and services, these Non Banking Financial Institutions act as an important catalyst in contributing to the overall growth of the financial services sector. NBFCs offer loans for working capital requirements, facilitate mergers and acquisitions, IPO finance, etc. apart from financial consultancy services. Trends are now changing as banks (both public and private) have now started focusing on NBFC domains like long and medium-term finance, working cap requirements. IPO financing to etc to meet the multifarious needs of the business community. The liberalize policy of Government of India permitted entry to private sector in the banking, the industry has witnessed the entry of nine new generation private banks. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Verify the focus has always been centered around the customer understanding his needs, preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. These banks have generally been established by promoters of repute or by high value domestic financial institutions. The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained considerable customer confidence and consequently have shown impressive growth rates. Today, the private banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking business). With efficiency being the major focus, these banks have leveraged on their strengths and competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher employee productivity skills. The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. A strategy that has allowed these banks to concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services. With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas, this statutory requirement has

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translated into lower deposit mobilization costs and higher margins relative to public sector banks. The Indian banking industry is currently in a transition phase. On the one hand, the public sector banks, which are the mainstay of the Indian banking system, are in the process of consolidating their position by capitalizing on the strength of their huge networks and customer bases. On the other, the private sector banks are venturing into a whole new game of mergers and acquisitions to expand their bases.

OVERVIEW OF INDUSTRY

BANKING IN INDIA Central Bank Reserve Bank of India State Bank of India ,Allahabad Bank ,Andhra Bank ,Bank of Baroda, Bank of Nationalized Banks India ,Bank of Maharashtra ,Canara Bank ,Central Bank of India ,Corporation Bank ,Dena Bank ,Indian Bank ,Indian Overseas Bank, Oriental Bank of Commerce ,Punjab & Sind Bank , Punjab National Bank ,Syndicate Bank ,Union Bank of India ,United Bank of India ,UCO Bank Bank of Rajasthan ,Bharat Overseas Bank , Catholic Syrian Bank , City Union Bank ,Development Credit Bank , Dhanalakshmi Bank ,Federal Bank ,Ganesh Private Banks Bank of Kurundwad ,HDFC Bank ,ICICI Bank ,IDBI Bank ,IndusInd Bank ,ING Vysya Bank ,Jammu & Kashmir Bank ,Karnataka Bank Limited ,Karur Vysya Bank ,Kotak Mahindra Bank ,Lakshmi Vilas Bank ,United Western Bank ,Axis Bank ,YES Bank

PROFILE OF THE ORGANIZATION

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Kotak Mahindra is one of India's leading financial organizations, offering a wide range of financial services that encompass every sphere of life. Kotak Mahindra Bank as a group comprises of companies that manage Personal Banking, Capital Investments, Brokerage, Corporate Banking, Wealth Management, Advisory, Kotak Prime Car Loans, Treasury and Insurance segments from commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, group caters to all of the financial needs of individual and corporate. The group has a net worth of over Rs. 6,327 crore and has a distribution network of more than 1300 branches, franchisees, representative offices and satellite offices across cities and towns in India and offices in New York, London, San Francisco, Dubai, Mauritius and Singapore. The Group services around 5.9 million customer accounts. Kotak Group was established in 1985 for Stock broking businesses in the UK. Kotak Mahindra Bank is the parent company of the group. In the USA, OLD MUTUAL is one of the top ten fixed annuity businesses offering an array of specialist asset management skills through its 23 asset management businesses. The companys US Life business recorded sales of $4 billion at the end of 2002. Operations in the United Kingdom are focused on wealth management, through Garrard as one of the leading private client. The OLD MUTUAL Group has the ability to cater for a variety of consumer segments and offers a comprehensive and innovative range of products for all income groups. Kotak Mahindra Bank (KMB), formerly known as Kotak Mahindra Finance (KMFL), was promoted in 1985 by Uday S Kotak and Sidnery A Pinto along with Kotak & Company under the name Kotak Capital Management Finance. The promoters were joined by Harish Mahindra and Anand Mahindra of Mahindra & Mahindra in 1986, and the company was renamed Kotak Mahindra Finance.

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 Kotak Mahindra Finance started as a finance company and was later converted in to a bank in 2002. The company has established itself as one of India's leading financial institutions with a range of services encompassing corporate finance, capital market financing, asset reconstruction, commercial vehicle finance, consumer finance, car finance, investment banking, mutual funds, and life insurance. KMB offers finance solutions that encompass every phase of life for individual as well as a corporate. It also had international partnerships with Goldman Sachs (one of the world's largest investment banks and brokerage firms), Ford Credit (one of the world's largest dedicated automobile financiers) and Old Mutual (a large insurance, banking and asset management conglomerate) through joint ventures and subsidiary companies.

STRUCTURE OF THE COMPANY The Kotak Mahindra Group, established in 1986, is one of India's leading financial institutions. The group has a net worth of over Rs. 5,609 crore, employs around 17,100 people in its various businesses. Kotak Mahindra has main offices in Mumbai and New Delhi and has a distribution network of branches, franchisees, representative offices and satellite offices across 344 cities and towns in India and offices in London, New York, Dubai, San Francisco, Singapore and Mauritius. The Group services around 3.6 million customer accounts.

MANAGEMENT

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Dr. Shankar Acharya Mr. Uday Kotak Mr. Anand Mahindra Mr. K.M Gherda Mr. Cyril Shroff Mr. Pradeep Kotak Mr. Shivaji Dam Mr. C. Jayaram Mr. Dipak Gupta Mr. Bina Chandarana

Chairman Executive Vice Chairman & Managing Director Member Member Member Member Member Executive Director Executive Director Secretary & Senior Vice President

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KOTAK MAHINDRA OPERATIONS

KOTAK MAHINDRA - OPERATIONS

Banking & Saving Insurance & Investment

Loan & Borrowing Corporate & Institutional

BANKING AND SAVINGS KOTAK is a leading provider of financial services to small, medium-sized and middle-market enterprises. The Group has over 33700 such active customers in India, including sole proprietors, partnerships, clubs and associations, incorporated businesses and publicly quoted companies. Commercial Banking provides a full range of banking services to these customers including multi-currency business accounts, payments and cash management, trade services, factoring and a range of borrowing solutions. For complete customer care Kotak Mahindra Bank provides 24 Hrs toll free phone banking, net banking facilities and mobile banking services.

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INVESTMENT AND INSURANCE The Kotak Mahindra Bank website provides you info on the ongoing interest rates and services charges for banking products and services by Kotak Mahindra Bank. Also get information on the careers and job opening with Kotak Mahindra Bank Limited. Any query about the recruitment procedure at Kotak Mahindra is also entertained online. The website provides the Kotak Mahindra Bank share price, PPT, their market share etc. Kotak Mahindra Bank Ltd. is presently one of the finest banking services providers in India. The specialized products by Kotak Mahindra Bank India that drive mass interest among the customers are Kotak Mahindra Life Insurance.

LOANS AND BORROWINGS A growing pie of commercial banking and increasing thrust on fee-based revenues from alternate asset and wealth management services are likely to reduce volatility in Kotaks earnings and valuations. KMB also has a wealth management unit, which focuses on HNIs. The groups scale and reach, coupled with a strong brand has enabled the bank to scale up its wealth management unit. Kotak is currently the wealth Manager/advisor to over 3,700 families and around 30% of the top300wealthy families in India. It is present in 14 cities, with about 110 relationship managers.

CORPORATE AND INSTITUTIONAL It provides a comprehensive range of products that include foreign exchange, money market, fixed income and currency and interest rate derivative products in both Indian rupees and major currencies. KMB is now gearing up to ride the crest of the retail banking wave that will sweep across this country of 1.1 billion people over the coming years.

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KOTAK GROUP IS INVOLVED IN THE FOLLOWING AREAS OF BUSINESS: Kotak Mahindra Prime Ltd. Kotak Mahindra Prime Limited (KMPL) is a 100% subsidiary of Kotak Mahindra Group (Kotak Group) 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 in India for being their preferred financier. As on March 31, 2005, KMP has a retail distribution network comprising of 54 branches (including representative offices) covering about 100 locations in 17 states in the country and has a wide network of Direct Marketing Associates, brokers and agencies supporting the distribution network and servicing around 113,000 customers. Kotak Mahindra Capital Company Ltd. Kotak Investment Banking (KIB) is India's premier Investment Bank Kotak Investment Banking (KIB) and Kotak Institutional Equities represent the securities business of the Kotak Mahindra Group (KI), Kotak Investment Bank is a full service Investment Bank bringing to its clients the global reach and the local knowledge and skills of Kotak Mahindra. As a full service Investment Bank, Kotak Investment Bakings core business areas include Equity Issuances, Mergers & Acquisitions, Advisory Services and Fixed Income Securities and Principal Business. Its strength lies in understanding the clients' businesses backed by a strong research team and an extensive distribution network, which spans a wide variety of investors across the country. It is also the first Indian Investment Bank to be registered with the Securities & Futures Authority in

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the UK (through our wholly owned subsidiary) and the National Association of Securities and Dealers in the USA. Its the first Indian Investment Bank to be appointed by the Government of India as a Co-lead Manager in their international divestment of Gas Authority of India Ltd through a GDR offering. Kotak Investment Bank today well positioned in an increasing globalize environment to provide full service to its clients based either in India or overseas. Kotak Mahindra Bank Ltd. Kotak Mahindra Bank Limited (KMBL) is the holding company and the flagship of the Kotak Mahindra Group. It was actually incorporated as Kotak Capital Management Finance Limited on November 2, 1985 and obtained its Certificate of Commencement of Business on February 11, 1986. It commenced operations with Bill Discounting and soon started other fund-based activities like corporate leasing & hire purchase, automobile finance and money market operations. Subsequently, it also entered the funds syndication and the Investment banking business. Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company (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 1, 35,000 investors in various schemes. KMMF offers schemes catering to investors with varying risk- return profiles and was the first fund house in the country to launch a dedicated gilt scheme investing only in government securities. International Subsidiaries Kotak Mahindra International Limited (KMIL) is the international arm of the Kotak Mahindra Group and was incorporated in 1994 in Mauritius, with a branch in Dubai. Today the international operations also cover the United Kingdom, through Kotak Mahindra U.K. Limited and in the USA, through Kotak Mahindra Inc. USA. These companies are subsidiaries of Kotak Page | 27

Mahindra Capital Company (KMCC) the Investment Banking Division of the Group. Services offered include GDR and ADR trading and broking, debt syndication, placement of Indian securities and advisory services. Kotak Mahindra was the first Indian group to be registered with the Securities and Futures Authority, U.K. Also, Kotak Mahindra is the first Indian group registered in the US providing service to both Institutional investors and High Net worth Clients in the US for their investments into Indian markets. Kotak Securities Kotak Securities Ltd., subsidiary of Kotak Mahindra Bank Ltd., is one of Indias largest brokerage and distribution house. Over the years Kotak Securities has been one of the leading investment service providers catering to the needs of various investor categories both institutional and non-institutional. The Private client group (PCG) of the Company provides value added investment advisory services to high net worth individuals, NRI investors, trusts, corporate and Banks. The investment product range offered by PCG covers equity investment and equity trading, equity derivatives, portfolio management, IPOs and Mutual funds. The Company has a full fledged research division involved in macroeconomic studies, sectoral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news. Kotak Securities Ltd., Depository Participant with National Securities Depository Limited (NSDL) and Central Depository Services Ltd. (CDSL) provides dual benefit services wherein the investors can use the brokerage services of the Company for executing the transactions and the depository services for settling them. Under the Portfolio Investment Scheme offered by the Company, the funds of the investors are managed by a highly competent team comprising of Equity Strategist, a Portfolio Manager and a team of equity, technical and derivatives analysts. Kotak Securities Ltd., also an Approved Intermediary under the Securities Lending Scheme, 1997, facilitates clients to borrow and lend securities. Page | 28

HISTORY

THE GENESIS OF THE EMERGENCE OF KOTAK GROUP Kotak began operations as a trade finance company in 1986 and was predominantly engaged in consumer lending. However over the years, as the group began expanding its financial services offerings, the share of profits from the lending business has declined. While broking and IB would continue to account for a large share of the groups profits, we expect the profit contribution of the lending business to improve substantially. Kotak carries out its lending business through three entities Kotak Mahindra Bank, Kotak Mahindra Prime and Kotak Mahindra Investments each focusing on a niche

1986 1987 1990 1991 1992

Kotak Mahindra Finance Limited starts the activity of Bill Discounting Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market The Auto Finance division is started The Investment Banking Division is started. Takes over FICOM, one of India's largest financial retail marketing networks Enters the Funds Syndication sector Brokerage and Distribution businesses incorporated into a separate company

1995

Kotak Securities. Investment Banking division incorporated into a separate company Kotak Mahindra Capital Company The Auto Finance Business is hived off into a separate company - Kotak Mahindra Prime Limited (formerly known as Kotak Mahindra Primus Limited).

1996

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. Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company. Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance business.

1998 2000 Page | 29

Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 2003 2004 Matrix sold to Friday Corporation Launches Insurance Services Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian company to do so. Launches India Growth Fund, a private equity fund. Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime 2005 (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra. Launches a real estate fund 2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company and Kotak Securities

RECENT ACHIEVEMENTS

Aon Hewitt conducted the 7th Best Employers in India Study, in 2011.Kotak Mahindra Bank Limited participated for the 3rd consecutive time and has been ranked 11th amongst Page | 30

the participating organizations. This time round too, we were declared amongst the Top 25 Best Employers in India!

KMCC was voted the Best Equity House in India by Euro money in 2003, 2004 and 2005, by Asia Money in 2003 and 2004 and by IFR in 2004. In 2004, Asia Money also voted its $ 2267 million deal for ONGC the Best Deal in India. The year before, the Maruti IPO won IFRs award for the Best Mid-Cap Equity Deal. Kotak Mahindra Bank Ltd. launched its Home Banking Service. The service is available across all urban & metro branches and is aimed at making banking convenient for the retail customer. Kotak Mahindra Bank was awarded as Best Security Strategist by Microsoft India and Best IT Implementation for Information security by PCQUEST. Ranked among top ten banks in the country in Business Today Best Banks survey Leading Broking House in India: market share in excess of 8% of market volumes (for the month of May, 2005). Overall asset managed/ advised by the group in excess of USD 2.60 billion Pioneered for Indias first book-built issue in 1999-2000 and played a key role in several industry-defining deals such as the Tech Mahindra, Hughes Software and Maruti Udyog IPOs. The bank is planning to reach by expanding the network of its branches across the country. KMB started with a single branch in 2003 and very rapidly ramped up its branches to 133 by H1FY08. We believe that KMB is in a sweet spot to tap the retail Page | 31

opportunity by taking the count of its branches to 200 by FY09E. This will help the bank to grow its retail advances (retail loans from the maximum proportion of its loan book). Singular focus and a low base would enable to register healthy growth on the advances and deposits side KMB s Net Profit zoomed by 125% during the first quarter of the Fiscal Year (April to June 06) , way ahead of other competitors, including HDFC Bank(48.4%) , UTI Bank(30.14%) and ICICI Bank(17%).

PRODUCT RANGE
The product Range of the project is from Current Account to Savings Account. The Range Of Current Account Is Quite Wide One Which Is As Follows:

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NEO CURRENT ACCOUNT

Accounts designed for small-mid size business or an enterprise At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you the Kotak Neo Current Account, power-packed with exclusive features that can make a tremendous difference to the way you do business. Key Features:

Charges reversal offer upto 1000 rupees p.a.! Unsecured overdraft facility upto Rs. 10 lakhs! Free Cash Deposit at Home Branch! Debit Card with Access at all Domestic VISA and Cash net ATMs! SMS Requests and Alerts Service!

EDGE CURRENT ACCOUNT

Accounts designed for small-mid size business or an enterprise. At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you the Kotak Edge Current Account, power-packed with exclusive features that can make a tremendous difference to the way you do business. Key Features:

Kotak Active Money Free DD/BC, NEFT & RTGS Free payable at - par cheque book Free cash deposit at home branch Home Banking service Unsecured overdraft facility upto Rs.10 lakhs

PRO CURRENT ACCOUNT

Accounts designed for small-mid size business or an enterprise. Page | 33

At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you the Kotak Pro Current Account, power-packed with exclusive features that can make a tremendous difference to the way you do business. Key Features: Free DDs, NEFT, RTGS & at - par cheque book

Free cheque collection Free cash deposit at home branch Free Home Banking service Kotak ActivMoney Unsecured overdraft facility upto Rs.10 lakh

ELITE CURRENT ACCOUNT

Accounts designed for small-mid size business or an enterprise At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you the Kotak Elite Current Account, power-packed with exclusive features that can make a tremendous difference to the way you do business. Key Features:

Free DDs, NEFT, RTGS & at - par cheque book Free cheque collection Free cash deposit at home branch Free Home Banking service Kotak ActivMoney Unsecured overdraft facility upto Rs.10 lakhs

ACE CURRENT ACCOUNT

Accounts designed for small-mid size business or an enterprise Page | 34

At Kotak Mahindra Bank, we believe that every little thing matters. That's why we bring to you the Kotak Ace Current Account, power-packed with exclusive features that can make a tremendous difference to the way you do business. Key Features:

Free DDs, NEFT, RTGS & at - par cheque book Free cheque collection Free cash deposit at home branch Free Home Banking service Kotak ActivMoney Unsecured overdraft facility upto Rs.10 lakhs

The Range Of Savings Accounts Is As Follows:

1. ACE SAVINGS ACCOUNT

Gateway to the world of financial benefits and privileged banking transactions Open a Kotak Ace Account and lead a worry free life. Now that you know what worries you don't have to put up with when you open a Kotak Savings Account, you may want to give some thought to how many free banking services would you like to avail. The Kotak Ace Account is the top-end variant of the Kotak Savings Account, where you also enjoy a wide range of free services and greater financial flexibility

The Kotak Ace Savings Account with Maximum free banking services This top end Savings Account variant is suited for those who would like to avail maximum banking and investment related benefits, over and above the numerous FREE services provided by the Kotak Pro Savings Account. Some of the extra benefits of the Kotak Ace Savings Account include: Page | 35

Free Access to all Domestic and International VISA ATMs Free Gold Debit Card Free Add-on and Supplementary Gold Debit Card Three NMC Waived Edge Savings Accounts for family members* Free Demand Drafts (Unlimited at Kotak locations) Free RTGS Extended Debit Card withdrawal limit of Rs. 1.75 lac per day through ATM / POS 15% Discount on Locker Rent * 2% Discount on Gold Eternity Coins & Bars* Waiver on first year Demat Annual maintenance charge Free outstation cheque collection

You can enjoy the advantages of the Kotak Ace Savings Account by maintaining an Average Quarterly Balance of Rs. 50,000. *Subject to maintenance of the required AQB in the Ace Savings Account. NMC: Non-Maintenance Charge At Kotak Mahindra Bank we believe that everyone has the right to worry free banking. So do take a closer look at the features of these accounts and decide which one fits your needs the best.

2. PRO SAVINGS ACCOUNT

Account packed with powerful features Open a Kotak Pro Account and lead a worry free life. Now that you know what worries you don't have to put up with when you open a Kotak Savings Account, you may want to give some thought to how many free banking services would you like to avail. The Kotak Pro Savings Account is the most recommended of our Savings Account suite. It offers you the 'best in class' features at a very manageable quarterly average balance. As you glance through the numerous features and benefits of this account, you will quickly see why this is truly the new age savings account. Page | 36

The Kotak Ace Savings Account with Maximum free banking services This account is ideally suited for those who are interested in availing banking related benefits, as well as taking advantage of the numerous FREE services provided by the Kotak Pro Savings Account. Some of the key advantages of the Kotak Pro Savings Account include:

Free Access to all Domestic VISA ATMs Free Gold Debit Card for 1st Year Free Classic Debit Card One NMC Waived Edge Savings Account for your family member* Free cash pick-up / delivery (One Call per day) Free instrument pick-up / delivery (One Call per day) Free NEFT Free Cash withdrawal from any Kotak Branch across India. 50 % Discount on first year Demat AMC

You can enjoy the advantages of the Kotak Pro Savings Account by simply maintaining an Average Quarterly Balance of Rs. 20,000. *Subject to maintenance of the required AQB in the Pro Savings Account. NMC: Non-Maintenance Charge At Kotak Mahindra Bank we believe that everyone has the right to worry free banking. So do take a closer look at the features of these accounts and decide which one fits your needs the best.

3. EDGE SAVINGS ACCOUNT

Financial package customized to suit your individual banking needs Open a Kotak Edge Account and lead a worry free life. Now that you know what worries you don't have to put up with when you open a Kotak Savings Account, you may want to give some thought to how many free banking services would you like to avail.

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The Kotak Edge Account is the basic variant of the Kotak Savings Account. It has been designed to suit the requirements of the new age professional, who wants a bank account to provide that little bit extra to be able to live life worry-free. The Kotak Edge Savings Account with peace of mind. This account is ideally suited for those who are interested in availing of the banking related benefits, without the additional FREE services provided by the Kotak Pro Savings Account. Some of the key benefits of the Kotak Edge Savings Account include:

Free Access to all Domestic VISA ATMs Free Classic Debit Card for 1st Year Free At-par Cheque (upto 25 leaves per qtr.) Free Phone Banking, Net Banking, Mobile Banking and SMS Banking Free NEFT

You can enjoy the advantages of the Kotak Edge Savings Account by simply maintaining an Average Quarterly Balance of Rs. 10,000. Helpful advice: Kotak Bank has discovered that a majority of the people choosing a Kotak Edge Account actually end up maintaining the Average Quarterly Balance required to maintain a Kotak Pro Account. It may be in your interest to choose the Kotak Pro Savings Account and not miss out on the extra advantages & free services! At Kotak Mahindra Bank we believe that everyone has the right to worry free banking. So do take a closer look at the features of these accounts and decide which one fits your needs the best.

4. NOVA SAVINGS ACCOUNT

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

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Key features Unlimited Access Financial payments facilitated through the savings account Quick and easy funds transfer

5. CLASSIC SAVINGS ACCOUNT

Account packed with powerful features Kotak Mahindra Bank's Classic Savings Account is an account packed with powerful features to provide you a superior banking experience at a very comfortable balance requirement. We provide you a relationship manager who will specifically take care of your banking and investment needs. Try the benefits of this account and you will never want to bank elsewhere! Key features Unlimited Access Financial payments facilitated through the savings account Quick and easy funds transfer ActivMoney Dedicated relationship manager

6. EASY SAVINGS ACCOUNT (NO FRILLS)

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

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7. CORPORATE SALARY ACCOUNT

Choose the Account best suited to your needs You need a guide who helps you manage your wealth and make the most of your hard earned money. We offer you the Kotak Salary Account, armed with exclusive privileges designed exclusively for you. We have two types of accounts to offer - Kotak Edge Salary Account and Kotak Ace Salary Account. Each product is feature packed ranging from Free Access to over 17000 ATMs, Free Demand Drafts, Free At -Par Cheque Facility to Free Trading Account & Free Demat Account. You can choose the one that suits you the most and we would be delighted to meet your requirements. Key Features

Zero Balance account Personalized At Par Cheque book Reimbursement Account Investment Account Office Banking Free Demand Drafts

Eligibility The organization needs to have a minimum of 25 employees and average salary per account of Rs. 20,000 per month.

ORGANIZATIONS PERFORMANCE

THE JOURNEY SO FAR:

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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.

COMPARISON CHART WITH THE COMPETITORS

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CORPORATE IDENTITY:

FUTURE PROSPECTS/PLANS

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VALUE AND MISSION At Kotak, we aim to help customers take important independent. The Global Indian Financial Services Brand- Our Customers will be the benefits of dealing with a global Indian brand that best understands their needs and delivers customized pragmatic solutions across multiple platforms. We will be a world class Indian Financial Services group. Our technology and best practices will be benchmarked along international lines while our understanding of customs will be uniquely Indian. We will be more than a repository of our customer`s savings. We, the group, will be a single window to every financial service in a customer`s universe. The most preferred employer in financial services- A culture of empowerment and a spirit of enterprises attracts bright minds with an entrepreneurial streak to join us and stay with us. Working with a home-grown, professionally-managed company, has partnerships with international leaders, gives our people a perspective that is universal as well as unique. The most trusted financial services company- We will create an ethos of trust across all our constituents. Adhering to high standards of compliance and cooperate governance will be an integral part of building trust. Value Creation- Value Creation rather than size alone will be our business drives. financial decisions at every stage in life by offering them a wide range of innovative life insurance products, to make them financially

SWOT ANALYSIS OF THE ORGANIZATION

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STRENGTH The working of company is well defined and all processes are organized to fullest. The customer relations are well maintained.

WEAKNESS The market conditions are not favoring the company. Thus Branch expansion is on a hold and revenue from third party products is on a decline. Miselling done by the employees hinders the Customer Relationship Management.

OPPORTUNITY The company had an advantage of being one of the first movers in the financial services sphere.

THREAT Bigger Private Sector banks like HDFC Bank, ICICI Bank, etc and foreign players have a considerable monopoly in the market, especially in the HNI segment which the Bank is targeting.

OBJECTIVE, SCOPE AND LIMITATIONS

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OBJECTIVE OF THE STUDY The main objective of this Project is to understand the importance of Current and Savings Account which serves as bread and butter for a bank and decreased percentage of which can affect the financial growth cycle and structure of any bank. Few features related to the objectives of the project are as follows: To understand the concept of Retail Selling of the products that are being offered by the Bank under various categories of CASA. To revive maximum Current and Savings Accounts to fulfill the Target of CASA Revival Campaign. To analyze various factors responsible for Customer Attrition and generate Methods to prevent the same.

SCOPE OF THE STUDY The scope of the study has included the Tricity i.e. Chandigarh, Panchkula and Mohali. Customers of these areas have been under taken for the sake of CASA Revival Campaign i.e. the Project covered the Campaign Area of the customers who are located in the above areas. The Customer Database has been divided into two categories i.e. Database having list of the customers with negative balances in their Current or Savings Accounts and other list of customers with zero balances in their Current or Savings Account and process is taken into consideration accordingly for the Revival Campaign.

LIMITATIONS OF THE STUDY Some of the limitations of the project are listed as below: Page | 45

 The time period of just 8 weeks was the major limitation. To convince people for the revival of their accounts for the purpose of waive off of negative charges form their account balance. Inability to access the information about customer from provided Personal Computer like customers Account Number, Customer Relationship Number (CRN), Contact Number etc.

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

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DATA PRESENTATION Initially Secondary Raw Data has been taken for the purpose of analysis and interpretation of the same but after processing it.

DATA

PROCESSING

INFORMATION

The Data which is available is the Secondary one i.e. already collected by the Bank employees. It was in raw form but was presented in informational form after processing of the same. The processed information was of great use for the purpose of analyzing the database and preparing a report of the same. The processing of the data inculcated The diversification of customers under categories of Negative Balance and Zero Balance Accounts. Formulating the customers detail in spreadsheet with their Account number, Customer Relationship number and Phone number. Calculating the respective ratios like Customers Account Conversion Ratio and Customer Retention Ratio. Generating the final Report of Positive Customers, showing their interest in the CASA Revival Campaign.

DATA ANALYSIS AND INTERPRETATION

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The Database used for the analysis and interpretation of the Report is Secondary Database provided by the bank. The Database is divided under two Categories of Zero Balance Accounts and Negative Balance Accounts. The Analysis and Interpretation of Zero Balance and Negative Balance Accounts are done separately and the respective ratios like Conversion Ratio and Retention Ratio are calculated for both the cases. The total of 68 Accounts has been revived with amount of Rs 40, 00,000. THE ANALYSIS AND INTERPRETATION OF ZERO BALANCE ACCOUNTS ARE AS FOLLOWS: Total Number of Calls=205 Number of Positive Results=11 Number of Accounts Actually Revived=6 CALCULATION OF RATIOS Conversion Ratio=Number of Positive Results/Total Number of Calls Conversion Ratio=11/205 Conversion Ratio=0.05 Retention Ratio= Number of Accounts Actually Revived/ Number of Positive Results Retention Ratio=6/11 Retention Ratio=0.54 RESULTS

CONVERSION RATIO=0.05 & RETENTION RATIO=0.54

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THE ANALYSIS AND INTERPRETATION OF NEGATIVE BALANCE ACCOUNTS ARE AS FOLLOWS: Total Number of Calls=743 Number of Positive Results=70 Number of Accounts Actually Revived=62 CALCULATION OF RATIOS Conversion Ratio=Number of Positive Results/Total Number of Calls Conversion Ratio=70/743 Conversion Ratio=0.09 Retention Ratio= Number of Accounts Actually Revived/ Number of Positive Results Retention Ratio=62/70 Retention Ratio=0.88

RESULTS

CONVERSION RATIO=0.09 & RETENTION RATIO=0.88

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REPRESENTATION OF DATABASE SHOWING TOTAL CALLS AND NUMBER OF POSITIVE RESULTS:

250

200

150

100

50

0 TOTAL CALLS POSITIVES

The above figure shows that Total calls for Zero Balance Database made are 205, out of which 11 Customers showed their interest for the revival at the initial stage.

REPRESENTATION OF DATABASE SHOWING INTERESTED CUSTOMERS AND NUMBER OF ACCOUNTS ACTUALLY REVIVED: Page | 50

The above figure shows that Total Positives Results for Zero Balance Database are11, out of which 6 Accounts are actually revived.

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REPRESENTATION OF DATABASE SHOWING TOTAL CALLS AND NUMBER OF POSITIVE RESULTS:

The above figure shows that Total calls for Negative Balance Database made are 743, out of which 70 Customers showed their interest for the revival at the initial stage.

REPRESENTATION OF DATABASE SHOWING INTERESTED CUSTOMERS AND NUMBER OF ACCOUNTS ACTUALLY REVIVED:

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The above figure shows that Total Positives Results for Negative Balance Database are 70, out of which 62 Accounts are actually revived.

SUMMARY AND CONCLUSION

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The project is about the Customer Attrition Rate and Methods to Prevent Attrition which works on the background of CASA i.e. Current Accounts and Savings Account. The main theme of the project is implementation of CASA Revival Campaign i.e. to get back those Customers those who have stopped banking with the Kotak Mahindra Bank and because of which there accounts have become Dormant. It covers all the aspects related to the CASA and various features related to the policy of CASA Revival. The project begins with a brief description of concepts like CASA, CASA Ratio, Customer Attrition and whole framework of Customer Relationship Management (CRM). The whole process of CASA Revival is explained at starting of the project stating each and every step. On the basis of results in depth analysis has been done and various methods or recommendations to prevent Customer Attrition Rate are also generated for the purpose of retaining the customer in the Bank. On the basis of processed data Graphical Representation of it is made and also some ratios like Conversion Ratio and Retention Ratio are calculated. On the basis of these ratios the final result is generated for the purpose of generating various ways to prevent the Customer Attrition. Hence, various recommendations are generated which are beneficial for the organization and could generate the prospective growth for the same. The whole conclusive part of the Project Report can be summarized as follows: The concept of CASA i.e. Current Account and Savings Account is great importance for any Bank; it serves bread and butter for it, so it should be as high as possible. Any activity or the result of any policy which can affect the CASA ratio can hamper the growth cycle of the Bank, so such activities should be controlled to some extend and amendments should be made according to the need of the customer which is the most important part of business. Customer Attrition rate should be least for any organization and should be considered with great importance.

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 Customer Relationship Management (CRM) is very important to retain a customer in Bank, it should be properly managed and maintained according to the requirement and suitability of the King of the business i.e. Customer. Any problem of a customer should be treated with great importance and proper steps should be taken to solve it and prove customer hindrance free services which were actually promised to him or her. Continuous updation of customers details which include the contact number, address, etc should be done so that there can be easy contact ability between the customer and the respective Relationship Officer or Relationship Manger for the purpose of proper Customer Relationship Management(CRM).

RECOMMENDATIONS
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The project on CASA Revival policy of the Bank is having some problems due to which various recommendations can be suggested which are as follows: Appropriate Customer Mapping should be done. Each Relationship Officer and Relationship Manager should be given a proper list of customers which should be covered in their calling areas i.e. with which easy accessibility can be possible. The bank should be a Primary Banker for any customer and for that the bank should come up with more effective policies that can attract Customers and generate business form them. Miselling should be avoided in order to gain the customers trust which is the main part of Customer Relationship Management (CRM) which helps to retain the customer as long as possible. Timely and Proper information about any changes in the existing policy or some new policy should be given to the customer for maintaining good relationship with them and avoiding any future problems. The Organization should work for Lower Turnover Ratio scenario as more the turnover ratio more would be problems for the customer to intimate there problems to their Relationship Officers or Relationship Managers. Bank should encourage more for more of the Family Clubbing i.e. bank should be holding the accounts of not a single person but of whole of his/her family members so that there would be lesser chances of Attrition from customers side and better growth prospects. Improved Customer Services should be encouraged so that customer should feel satisfied while using the services of the bank and hence lesser percentage of Attrition Ratio should be there.

BIBLIOGRAPHY
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 Zikmund, Research Methodology Kotak Mahindra Bank Database Kotler, P, Marketing Management

www.kotak.com www.rbi.com

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