an organisational study on kotak mahindra bank
TRANSCRIPT
An organisational study on kotak Mahindra bank
Banking and Finance FINANCE
Finance is the life blood of business . it flows in mostly from scale of
goods and services. It flows out for meeting various types of expenditure.
Teh activating element in any business which may be on industrial or
commercial under taking is teh finance . often defined simply as the
management of money or “funds” management. Modern finance,
however, is a family of business activity that includes the origination,
marketing, and management of cash and money surrogates through a
variety of capital accounts, instruments, and markets created for
transacting and trading assets, liabilities, and risks. Finance is
conceptualized, structured, and regulated by a complex system of power
relations within political economies across state and global markets.
Finance is both art (e.g. product development) and science (e.g.
measurement)
Bank
A bank is a financial institution and a financial intermediary that
accepts deposits and channels those deposits into lending activities, either
directly or through capital markets. A bank connects customers that have
capital deficits to customers with capital surpluses.
Financial markets
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An organisational study on kotak Mahindra bank
In economics, a financial market is a machanism that allows people to
buy and sell (trade) financial securities (such as stocks and bonds),
commodities (such as precious metals or agricultural goods), and other
fungible items of value at low transaction cost and at prices that reflects
the efficient-market hypothesis.
Both general markets( where many commodities are traded ) and
specialized markets ( where only one commodity id traded) exist. Market
work by placing many interested buyers and sellers in one “place”
(“BANKS”) , thus making it easier for them to find each other
Indian financial market
What does indian financial market comprise of ? it talks the primary
market, FDI , alternative investment options, banking and insurance and
pension sectors , wealth managemenet segment as well .with all these
elements in the indian financial market, it happens to be one of the oldest
across the globe and is definitely the fastest growing and the best among
all the financial markets of the emerging economies
Evolution of banking sector
Banking in India originated in the last decades of the 18th century.
The first banks were The General Bank of India, which started in 1786,
and Bank of Hindustan, which started in 1790; both are now defunct.
The oldest bank in existence in India is the State Bank of India, which
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originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three
presidency banks, the other two being the Bank of Bombay and
the Bank of Madras, all three of which were established under charters
from the British East India Company. For many years the Presidency
banks acted as quasi-central banks, as did their successors. The three
banks merged in 1921 to form the Imperial Bank of India, which, upon
India's independence, became the State Bank of India in 1955.
Nationalization
Despite the provisions, control and regulations of Reserve Bank of
India, banks in India except the State Bank of India or SBI, continued
to be owned and operated by private persons. By the 1960s, the Indian
banking industry had become an important tool to facilitate the
development of the Indian economy. At the same time, it had emerged as
a large employer, and a debate had ensued about the nationalization of the
banking industry. Indira Gandhi, then Prime Minister of India,
expressed the intention of the Government of India in the annual
conference of the All India Congress Meeting in a paper entitled "Stray
thoughts on Bank Nationalization." The meeting received the paper with
enthusiasm.
Thereafter, her move was swift and sudden. The Government of India
issued an ordinance and nationalized the 14 largest commercial banks
with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a
national leader of India, described the step as a "masterstroke of political
sagacity." Within two weeks of the issue of the ordinance, 3
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the Parliament passed the Banking Companies (Acquisition and Transfer
of Undertaking) Bill, and it received the presidential approval on 9
August 1969.
A second dose of nationalization of 6 more commercial banks followed in
1980. The stated reason for the nationalization was to give the
government more control of credit delivery. With the second dose of
nationalization, the Government of India controlled around 91% of the
banking business of India. Later on, in the year 1993, the government
merged New Bank of India with Punjab National Bank. It was the only
merger between nationalized banks and resulted in the reduction of the
number of nationalized banks from 20 to 19. After this, until the 1990s,
the nationalized banks grew at a pace of around 4%, closer to the average
growth rate of the Indian economy.
Liberalization
In the early 1990s, the then Narasimha Rao government embarked on a
policy of liberalization, licensing a small number of private banks. These
came to be known as New Generation tech-savvy banks, and included
Global Trust Bank (the first of such new generation banks to be set up),
which later amalgamated with Oriental Bank of Commerce, Axis
Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move,
along with the rapid growth in the economy of India, revitalized the
banking sector in India, which has seen rapid growth with strong
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contribution from all the three sectors of banks, namely, government
banks, private banks and foreign banks.
The next stage for the Indian banking has been set up with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign
Investors in banks may be given voting rights which could exceed the
present cap of 10%,at present it has gone up to 74% with some
restrictions.
The new policy shook the Banking sector in India completely. Bankers,
till this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%;
Go home at 4) of functioning. The new wave ushered in a modern
outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People not just demanded more from their
banks but also received more.(2010), banking in India is generally fairly
mature in terms of supply, product range and reach-even though reach in
rural India still remains a challenge for the private sector and foreign
banks. In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to
other banks in comparable economies in its region. The Reserve Bank of
India is an autonomous body, with minimal pressure from the
government. The stated policy of the Bank on the Indian Rupee is to
manage volatility but without any fixed exchange 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 investment services
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are expected to be strong. One may also expect M&As, takeovers, and
asset sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to
increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.
This is the first time an investor has been allowed to hold more than 5%
in a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted
by them.
In recent years critics have charged that the non-government owned
banks are too aggressive in their loan recovery efforts in connection with
housing, vehicle and personal loans. There are press reports that the
banks' loan recovery efforts have driven defaulting borrowers to suicide.
Adoption of banking technology
The IT revolution had a great impact in the Indian banking system. The
use of computers had led to introduction of online banking in India. The
use of the modern innovation and computerization of the banking sector
of India has increased many folds after the economic liberalization of
1991 as the country's banking sector has been exposed to the world's
market. The Indian banks were finding it difficult to compete with the
international banks in terms of the customer service without the use of the
information technology and computers.
The RBI in 1984 formed Committee on Mechanization in the Banking
Industry (1984) whose chairman was Dr C Rangarajan, Deputy Governor,
Reserve Bank of India. The major recommendations of this committee
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were introducing MICR Technology in all the banks in the metropolis in
India. This provided use of standardized cheque forms and encoders.
In 1988, the RBI set up Committee on Computerization in Banks (1988)[6] headed by Dr. C.R. Rangarajan which emphasized that settlement
operation must be computerized in the clearing houses of RBI in
Bhubaneshwar, Guwahati, Jaipur, Patna and Thiruvananthapuram.It
further stated that there should be National Clearing of inter-city cheques
at Kolkata, Mumbai, Delhi, Chennai and MICR should be made
Operational. It also focused on computerization of branches and
increasing connectivity among branches through computers. It also
suggested modalities for implementing on-line banking. The committee
submitted its reports in 1989 and computerization began form 1993 with
the settlement between IBA and bank employees' association.
IN 1994, Committee on Technology Issues relating to Payments System,
Cheque Clearing and Securities Settlement in the Banking Industry
(1994) was set up with chairman Shri WS Saraf, Executive Director,
Reserve Bank of India. It emphasized on Electronic Funds Transfer
(EFT) system, with the BANKNET communications network as its
carrier. It also said that MICR clearing should be set up in all branches of
all banks with more than 100 branches.
Committee for proposing Legislation on Electronic Funds Transfer and
other Electronic Payments (1995) emphasized on EFT system. Electronic
banking refers to DOING BANKING by using technologies like
computers, internet and networking, MICR, EFT so as to increase
efficiency, quick service, productivity and transparency in the transaction.
Apart from the above mentioned innovations the banks have been selling
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the third party products like Mutual Funds, insurances to its clients. Total
numbers of ATMs installed in India by various banks as on end March
2005 is 17,642. The New Private Sector Banks in India is having the
largest numbers of ATMs which is followed by SBI Group, Nationalized
banks, Old private banks and foreign banks. The total off site ATM is
highest for the SBI and its subsidiaries and then it is followed by New
Private Banks, Nationalized banks and foreign banks. While on site is
highest for the nationalized banks of India.
Top ten banks in India:
1. State Bank of India (SBI),
2. ICICI BANK,
3. AXIS BANK,
4. HDFC BANK,
5. BANK OF INDIA,
6. BANK OF BARODA,
7. PUNJAB BANK OF INDIA,
8. CITI BANK,
9. KOTAK BANK,
10.UNION BANK
Wealth management
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Wealth management is an investment advisory discipline that
incorporates financial planning, investment portfolio management and
a number of aggregated financial services. High Net worth
Individuals (HNWIs), small business owners and families who desire
the assistance of a credentialed financial advisory specialist call upon
wealth managers to coordinate retail banking, estate planning, legal
resources, tax professionals and investment management. Wealth
managers can be an independent Certified Financial Planner, MBAs,
Chartered Wealth Manager, CFA Charter holders or any credentialed
professional money manager who works to enhance the income, growth
and tax favored treatment of long-term investors. Wealth management is
often referred to as a high-level form of private banking for the
especially affluent. One must already have accumulated a significant
amount of wealth for wealth management strategies to be effective.
Private wealth management (PWM) is the term generally used to
describe highly customized and sophisticated investment
management and financial planning services delivered to high net
worth investors. Generally, this includes advice on the use of trusts and
other estate planning, vehicles, business succession or stock option
planning, and the use of hedging derivatives for large blocks of stock.
Traditionally, the wealthiest retail clients of investment firms demanded a
greater level of service, product offering and sales personnel than were
received by the average clients. With an increase in the number of
affluent investors in recent years, there has been an increasing demand for
sophisticated financial solutions and expertise throughout the world.
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The CFA Institute curriculum on "Private Wealth Management"
indicates that there are two primary factors that distinguish the issues
facing individual investors from those of institutions.
Time horizons are different. Individuals face a finite life as
compared to the potentially infinite life of institutions. This fact
requires strategies for transferring assets at the end of an individual’s
life. These transfers are subject to laws and regulations that vary from
locality to locality and therefore the strategies available to address this
situation vary.
Individuals are more likely to face a variety of taxes on investment
returns that vary from locality to locality. Portfolio management
techniques that provide individuals with after tax returns that meet
their objectives are necessarily going to be specific to these tax
structures.
The term was first used by the elite retail (or "Private Client") divisions
of firms such as Goldman Sachs or Morgan Stanley (before the Dean
Witter Reynolds merger), to distinguish themselves from mass market
offerings, but since has spread throughout the financial services industry.
Certain larger firms (UBS, Morgan Stanley and Merrill Lynch) have
"tiered" their platforms – with separate branch systems and advisor
training programs, distinguishing Private Wealth Management from
"Wealth Management", with the latter term used to describe the same
type of services, but with a lower degree of customization and delivered
to mass affluent clients. In the late 1980s private banks and brokerage
firms began to offer seminars and client events designed to showcase the 10
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expertise and capabilities of the sponsoring firm. Within a few years a
new business model emerged – the Institute for Private Investors in 1991.
These new entities were devoted to educating the ultra wealthy investor
and providing a network of peers for the ultra high net worth
individual and their families. Their growth since the 1990s indicates a
market eager to become more informed about private wealth
management.
Wealth management education for private investors with substantial
wealth is offered by several leading universities. The first such program
was offered by the American Academy of Financial Management (now
branded as the AAFM Global Academy of Financial Management) who
offers the CWM Chartered Wealth Manager Program and then
the Wharton School of the University of Pennsylvania. Since 1999,
over 5000 people from over 100 countries have completed the AAFM
CWM Wealth Manager program. At Wharton, 520 investors from 29
countries have completed the course. The five-day program is offered
twice a year and is a continuing partnership with the Institute for Private
Investors. Both The University of Chicago and Stanford University also
offer 5 day programs. In 2009, Columbia University offered a three day
program on value investing designed for high net investors Wealth
management can be provided by large corporate entities, independent
financial advisers or multi-licensed portfolio managers whose services are
designed to focus on high-net worth clients. Large banks and
large brokerage houses create segmentation marketing-strategies to sell
both proprietary and non-proprietary products and services to investors
designated as potential high net-worth clients. Independent wealth 11
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managers use their experience in estate planning, risk management, and
their affiliations with tax and legal specialists, to manage the diverse
holdings of high net worth clients. Banks and brokerage firms use
advisory talent pools to aggregate these same services.
The events of 2008 in the financial markets caused investors to address
concerns within their portfolios. "The past 18 months have challenged
traditional thinking about investing and asset allocation, diversification,
and correlation. For individual investors, risk tolerances have been tested,
investment assumptions have been overturned, and fundamental truisms
have been questioned." For this reason wealth managers must be prepared
to respond to a greater need by clients to understand, access, and
communicate with advisers regarding their current relationship as well as
the products and services that may satisfy future needs. Moreover,
advisors must have sufficient information, from objective sources,
regarding all products and services owned by their clients to answer
enquiries regarding performance and degree of risk-at the client, portfolio
and individual security levels. "This state of affairs poses a dilemma for
wealth managers, who, for a generation, have adhered to the core
principles of asset allocation and earned their keep by preaching the
mantras of 'buy and hold', 'invest for the long term', and when things get
tough, 'stay the course'.”
Today wealth management advisors must have access to an objective
content repository. This repository must contain a current and readily
available profile of the client’s holdings.
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1 The Kotak Mahindra Group:-
Kotak Mahindra is one of India's 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, the
group caters to the diverse financial needs of individuals and
corporate.
The group has a net worth of over Rs. 6,523 crore and has a
distribution network of 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 6.2 million customer accounts.
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“Kotak Mahindra Bank” is one of India's leading
financial private banking institutions. It offers banking solutions that
covers almost every sphere of life. Some of its financial services include
commercial banking, stock broking, mutual funds, life insurance and
investment banking. Established under the brand of Kotak Mahindra
Finance Ltd in 1984, it was given the license to carry on with banking
business by the Reserve Bank of India in February 2003. It is the first
company in the Indian banking history to convert to be converted from a
private financial institution to a bank
.
The bank's share value has multiplied 23 times and its market
capitalization is just shy of Rs28, 000 corers. That's quite some growth
since the days when it started out as three people in a 300-square-feet
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office in 1985. Today it has more than 20,000 employees and Rs10, 000
crore in revenue as it completes 25 years. The group plans to double
revenues over the next four years, adding 2,500 employees every year
Kotak Mahindra Bank caters to the myriad needs of Resident
Individuals, NRIs and Businesses. Kotak Mahindra Bank offer complete
financial solutions for infinite needs of all individual & non-individual
customers depending on the customer's need - delivered through a state
of the art technology platform. Investment products like Mutual Funds,
Life Insurance, retailing of gold coins and bars etc are also offered. The
Bank follows a mix of both open and closed architecture for distribution
of the investment products. All this is backed by strong, in-house
research on Mutual Funds
.
Our Savings Account goes beyond the traditional role of savings, and
allows you to put aside a lot more than just money. The worry-free
features of our Savings Account provides a range of services from funds
transfer, bill payments, 2-way sweep through our Active Money feature
& much more. You can place standing instructions for investment
options that can be booked through Internet or through Phone banking
services. The Savings Account thus provides for attractive returns
earned through a comprehensive suite products and services that offer
investment options, all delivered seamlessly to the customer by well
integrated technology platforms. Apart from Phone banking and Internet
banking, the Bank offers convenient banking facility through Mobile
banking, SMS services, Netc@rd, Home banking and Bill Pay facility
among others.
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The Depository services offered by the Bank allows the customers to
hold equity shares, government securities, bonds and other securities in
electronic or Demat forms.
Our “Salary 2 Wealth” offering provides comprehensive administrative
solutions for Corporate with features such as easy and automated web
based salary upload process thereby eliminating the paper work involved
in the process, a dedicated relationship manager to service the corporate
account, customized promotions and tie - ups and many such unique
features. The whole gamut of investment products and investment
advisory services is available to the salary account holders as well.
For the business community, we offer comprehensive business solutions
that include the Current Account, Trade Services, Cash Management
Service and Credit Facilities, keeping in mind the myriad needs of your
business... Our Wholesale banking products offer business banking
solutions for long-term investments and working capital needs, advice
on mergers and acquisitions and equipment financing. To meet special
needs of the rural market, we have dedicated business offerings for
agricultural financing and infrastructure. Our Agriculture Finance
division delivers customised products for capital financing and
equipment financing needs of our rural customers.
For financial liquidity we offer you loans that meet your personal
requirements with quick approval and flexible payment options. To
complete the personal financial offerings space, we now offer Kotak
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Credit Card which is a hassle-free, transparent product that also happens
to be the first vertical credit card in the industry.
Kotak Mahindra Bank addresses the entire spectrum of financial needs
of Non-Resident Indians. Our tie-up with the Overseas Indian
Facilitation Centre (OIFC) as a strategic partner gives us a platform to
share our comprehensive range of banking & investment products and
services for Non Resident Indians (NRIs) and Persons of Indian Origin
(PIOs). Our Online Account Opening facility and Live Chat service
helps you to get in touch with us at the comfort of your homes and at
your
OUR SENIOR MANGER
Mr. Uday Kotak…. Founder of the Kotak group
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Mr. Uday Kotak, B.Com. MMS, aged 46 years, is the Executive Vice-
Chairman and Managing Director of the Bank and is its principal founder
and promoter. Over the past 20 years, he has successfully built a well-knit
team of high quality professionals who have been given independent
charge of various businesses in Kotak Mahindra group. He was
responsible for starting the business as a start-up venture in a limited
range of activities and then building it up into a full financial services
group, many of the constituents of which are among the leading players
in their respective fields. He is on the Board of the Indian Council for
Research on International Economic Relations (ICRIER)
Mr.C.jayaram Joint Managing Director
Mr. C. Jayaram, is a Joint Managing Director of the Bank and is currently
in charge of the Wealth Management Business of the Kotak Group. An 18
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alumnus of IIM Kolkata, he has been with the Kotak Group since 1990
and member of the Kotak board in October 1999. He also oversees the
international subsidiaries and the alternate asset management business of
the group. He is the Director of the Financial Planning Standards Board,
India. He has varied experience of over 25 years in many areas of finance
and business, has built numerous businesses for the Group and was CEO
of Kotak Securities Ltd. An avid player and follower of tennis, he also
has a keen interest in psychology
Mr.Dipak.gupta Joint Managing Director
An electronics engineer and an alumnus of IIM Ahmedabad, Mr. Gupta
has been with the Kotak Group since 1992 and joined the board in
October 1999.
He heads commercial banking, retail asset businesses and looks after
group HR function. Early on, he headed the finance function and was
instrumental in the joint venture between Kotak Mahindra and Ford
Credit International. He was the first CEO of the resulting entity, Kotak
Mahindra Primus Ltd.
Year Milestone
2006 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra
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Capital Company and Securities
2008 Launched a Pension Fund under the New Pension System
2009Kotak Mahindra Bank Ltd. Opened a representative office in Dubai
Entered Ahmedabad Commodity Exchange as anchor investor
2010
Ahmedabad Derivatives and Commodities Exchange, a Kotak
anchored enterprise, became operational as a national commodity
exchange.
2011Kotak Mahindra Bank Ltd entered into a Business Cooperation
arrangement with CIMB Group Sdn Bhd, Malaysia.
Corporate social responsibilities
Kotak uses the power of its human and financial capital to help in
transforming communities into vibrant, desirable places for people to
live. The group leverages its core competencies in three areas:
1. Sustainability
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An integral part of all Kotak Mahindra Group activities is to be
consistently responsible to shareholders, clients, employees, society and
the environment.
2. Economic Development
By helping people achieve their financial goals, Kotak strengthens the
fabric of communities and helps them overcome unemployment and
poverty to help them shape their future.
3. Doing My Bit
A growing number of employees are committed to civic leadership and
responsibility with the support and encouragement of the Kotak Group. A
number of employees have been involved in strengthening communities
through voluntary work, payroll giving and management inputs.
Vision
“To be among the top few private players with substantial market
presence”
Global Indian Financial Service Brand
Indian understanding: Global Standards of Delivery
Most Preferred Employers/Business Partners
Home from Bright minds and entrepreneurial skills
Most Trusted Financial Service Company
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High Standard of Compliance/Corporate Governance
Value and Not just Size
Business Driven with both Value and Growth in Mind.
MISSION
To consistently provide a full spectrum Of intelligent
financial choice
Be a preferred provider of the highest quality service In our
chosen business area
Objectives
The Code is intended -
To promote good banking practices by setting out the
minimum standards which Member Banks will follow in
their dealings with customers;
To foster customer confidence in the banking system;
To inculcate self-discipline amongst Member Banks
with a view To promoting healthy competition and
ethical practices in respect of banking services
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Products and services giving by the bank Banking & Savings
Banking Accounts
Credit Cards
Demat
Deposits
Convenience Banking
NRI Services
Privy League Business
Loans & Borrowings
Personal Loans
Car Loans
Home Loans
Loans Against Property
Commercial Loans
Dealer Finance
Investments & Insurance
Life Insurance
Mutual Funds
Share Trading
Structured Products
Gold
Estate Planning
Wealth Management
Consumer Research
Investing in IPOs 23
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Portfolio Management
Corporate &Institutional
Corporate Finance
Custody Services
Investment Banking
Institutional Equities
Treasury
Private Equity
Institutional Equities
Realty Fund
COMPETITORS PROFILE OF KOTAK MAHINDRA BANK
HDFC
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 liberalization of the Indian Banking Industry in 1994. The bank
was incorporated in August 1994 in the name of ‘HDFC Bank Limited’,
with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
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ICICIBank
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 ATM’s* in India and
presence in 18 countries. ICICI Bank offers wide range of banking
products and financial services to corporate and retail customers through
a variety of delivery channels and through its specialized subsidiaries and
affiliates in the areas of investment banking life and non-life insurance,
venture capital and asset management.
SBI Bank
The origin of the State Bank of India goes back to the first decade of the
19th century with the establishment of the bank of Calcutta in Calcutta on
2nd June, 1806. Three years later the bank received its charter and was
redesigned as the Bank of Bengal (2nd 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 (15th April, 1840) and
the Bank of Madras (1st July, 1843), followed the Bank of Bengal. These
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three banks remained at the apex of the modern banking in India till there
amalgamation as the Imperial Bank of India on 27th 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 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 public sector units insurance companies i.e., National
Insurance Company Limited, The New India Assurance Company Limited,
The Oriental Insurance Company Limited and United India Insurance
Company Limited.
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The bank has strengths in both retail and cooperate banking and is
committed to adopting the best industry practices internationally in order to
achieve excellence.
ORGANISATION STRUCTURE:
Definition of 'Organizational Structure'
Explicit and implicit institutional rules and policies designed to provide a
structure where various work roles and responsibilities are delegated,
controlled and coordinated. Organizational structure also determines how
information flows from level to level within the company. In a centralized
structure, decisions flow from the top down. In a decentralized structure,
the decisions are made at various different levels. A good organizational
structure can often spell the difference between a smooth operating
organization and one in chaos. By establishing a hierarchical structure
with a clear chain of command, companies are better able to streamline
their operations.
DEPARTMENTS:Kotak being a relatively big company has a many departments in the
organization.
Finance department
Marketing department
Research department
Human resource department
Service department
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2.10.1 Organisational Structure of board of directors
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Chairman of Board
Director Director Director Director Director
CEO
Uday Kotak
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2.10.2Marketing structure of Kotak mahindra bank
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CTO (group)
AR
CFO
Jaiman butt
Coo
Vikram sud
CIO
SG
Secretary
BC
Joint MD
DG
Debts capital
manager
Risk manager
CTO (group)
RM
Marketing operations regional Head
Preeth pahwa
Sudeep singh
Bangalore
Rupesh
Chennai
Anuskha
AP
Indrani
Kerala
An organisational study on kotak Mahindra bank
2.10.3 Human resource department of kotak mahindra bank
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Manjeeth (Mumbai)
Vice president HR
Surpreeth Singh (Mumbai)
Vice president HR
Koruth verqhesa (Bangalore)
Vice president HR
Shailendra bhodria (New Delhi)
Vice president HR
Amithabsen (Mumbai)
Executive Vice president HR
Subhro bhandura (Bangalore)
Executive vice president HR
Subhro Mukarjee (Kolkata)
Chef manager HR
Ritika gosh (Bangalore)
Management Trainee
Raghuvendra nayak (Chennai )
Associate vice president HR
Rajendra khodake (Mumbai)
Senior manager HRKarthik
HR
Maha lakshmi
HR
An organisational study on kotak Mahindra bank
What kotak offer in wealth management
In kotak we provide wide range of products and services. Each offering is supported by thorough research and understanding of product characteristics, client specific requirements, and financial markets, to ensure an affective asset management.
The assets advisory services takes your wealth through the entire risk profiling and assets allocation process and subsequently advises you on your portfolio by effecting tactical calls and periodic reviews. The assets advisory services are structured to be completely aligned to you while remaining commercially viable. The key pillar of this service is that it is not riven by distribution dynamics and brokerage but through a completely open architecture that ensure transparent advices. Most importantly we have expert resources with the involvement of sophisticated models and a well-defined process to meet your investments objectives.
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An organisational study on kotak Mahindra bank
We also provide transactional service
Transactional services :- transactional services are backed by strong research and expertise across a variety of assets classes .we provide you access to the widest range of products which include both traditional and specialized products
Traditional products include:-
1. Direct equity investment :- generally refers to the buying and holding of shares on a stock market by individuals in anticipation of income from dividends and capital games as a value of stock rises
2. Mutual funds: - mutual fund is a professially managed pull of money from investors with similar investment objectives. A mutual fund represents many individual stocks from the variety of industries and is managed by a fund manager.
3. Insurance: - life insurance helps you to protect your family and yourself against an uncertain future. after deciding on the amount of insurance that you require , you need to decide on the policy the best suits your needs
4. Banking account an credit services :- you can gain access to exclusive banking benefits and a wide variety of credit products you can choose from
Specialized products
i. Structure products: - a structure investments product is generally a pre – package investment strategies which is based on derivate such as single security, a basket of securities, options, indices, commodities, debt, issue assurances and foreign currencies. a key feature of some structure products is a principal production functions which offers production of principal if held to maturity
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An organisational study on kotak Mahindra bank
ii. Discretionary and non- discretionary portfolio management services: - investing in equities requires time knowledge and constant monitoring of the market. For those who need an expert to help manage their investments, discretionary portfolio management service (PMS) comes as an answer the benefits of PMS are: - your portfolio is tailored after thorough research back by the expertise of the discretionary PMS TEAM. An experience team of portfolio managers ensures you portfolio is traced monitored and optimized at all times.
Non-discretionary (PMS) :- is a consultative and transparent method of investing . With NDPMS the investor is always consulted and informed of all the investment decisions, thus giving the investor total control
Private equity:-private equities are equity securities of un listed companies. Private equity investments are not subject to the same high level of government regulation as stock offerings to the general public. Private equity is also far less liquid than publicly traded stock
Real estate fund:- real estate funds are founded by a group of real estate professionals or experts to manage sale or rentals of property and real estate for the investor . some real estate funds may not actually own property as they may involve above average risk from volatility in property prices instead such funds invest in bonds or instruments that are secured by properties.
Estate planning: - includes creating a plan incorporating your wishes regarding your estate which provide for effective management, reservation and legacy of the estate during and after your life time. The primary gold of the estate planning is ensuring that the estate of the individual passes to the estate owners intended beneficiaries often including efficient tax and
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An organisational study on kotak Mahindra bank
succession planning and avoiding or minimizing court proceedings in successions
WHAT IS A RESEARCH?
Research is a systematic process of collecting and analyzing information
to increase our understanding of the phenomenon under study. It is the
function of the researcher to contribute to the understanding of the
phenomenon and to communicate that understanding to others.
WHAT IS A RESEARCH DESIGN?
Research design is a specification of methods and procedures for
acquiring the information needed for solving the problem. A research is
the arrangement of condition for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with
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An organisational study on kotak Mahindra bank
economy in procedure. So a research design is the conceptual structure
within which research is conducted.
It involves the blue print of entire research study as what was the
problem identified, type of research, methods of data collection, what was
the sample size, objectives of research and limitations of the research.
TITLE OF THE STUDY: -
“Organizational study of kotak Mahindra bank .” With specific
reference to kotak wealth management
STATEMENT OF THE PROBLEM: -
Best Investment options for different types of investors in
wealth management. Analyzing market risk suitable to investors
Objectives to the study :- To educate and understand the service and benefits of wealth
management
Need for study :-
The basic purpose of this study is to know how much customers are
satisfied with services of wealth management and the other services
provided by kotak
SCOPE OF THE STUDY:-
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An organisational study on kotak Mahindra bank
The study is based on the survey which is conducted by various
customers who have shared their satisfaction level with the kotak
regarding their services.
METHODOLOGY OF RESERCH STUDY
Methodology of Research study adopted was survey method. For
primary data a sample size of twenty customers were contacted & data’s
were obtained from them through a questionnaires prepared in English.
Respondents were contacted at the Bank itself, some were contacted at
their work spots & some were at their residence, depending upon their
convenience. For secondary data marketing books, magazines, Journals
were referred.
SOURCES OF DATA
For the purpose of this study, data from two sources have been gathered
namely:-
(1) Primary Data
(2) Secondary Data
Primary Source: - are original source, which are collected directly
from the respondents. This information is collected through
questionnaire, personal interview and through observation.
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An organisational study on kotak Mahindra bank
Secondary Source:- are those that containing data which have been
collected and compiled for another purpose. These sources consist of
readily available information and already complied statistical statement
whose data may be used by the researchers for their study.
The secondary sources includes Annual Reports, Journals, Articles It
falls under primary method because we were supposed to do the
questionnaire method.
Limitation on the study
1. The research was limited to Bangalore city only.
2. The study suffers from time and cost constraints.
3. Information limitation.
4. Hesitant behaviour by customers.
5. Anticipating and avoiding problems.
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An organisational study on kotak Mahindra bank
The questionnaires were distributed among a sample size of 20, from
whom firsthand inform1ation was collected by questionnaire and
interview method. Questio1ns related to wealth management,
investments, risk profile etc., were asked to carry out the research
effectively and efficiently. The following is the analysis and
interpretation based on the answers received from the distribution of
questionnaire-primary data.
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An organisational study on kotak Mahindra bank
TABLE 4.1.What is your present income?
AMOUNT NO OF RESPONSE PERCENTAGE%
1. Under 1,00,000 6 30
2. Under 5,00,000 7 35
3. Under 1 cr 5 25
4. Under 5 cr 2 10
Analysis
Out of 20 people 30% of people have income under 100000, 35% of people have income under 500000, 25% of people have income under 1 cr , and 10% of people have income under 5 cr
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An organisational study on kotak Mahindra bank
Graph 4.1 shows the present income of the customer
Interpretation
The following chart can be inferred that average people have their income have up to 5 crs and rest people are represented above in the chart
TABLE 4.2 Total assets
AMOUNT No. of respondents PERCENTAGE
UNDER 5000000 5 25
UNDER 5000000 9 45
UNDER 1 CR 5 25
UNDER 5 CR 1 5
ABOVE 5 CR 0 0
Analysis
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An organisational study on kotak Mahindra bank
From 20 people 25% have under 1cr and 500000 assets, where as 45% have fewer than 5000000, and 5 % have less than 5 cr and no one has above 5 car
Graph 4.2 family’s total assets
INTERPRETATION
The following chart can be inferred that assets of the parents plus the customer’s earnings is added and summed together so that the evaluation of the customer’s background is easily identified.
TABLE 4.3 DO you have any life insurance
ANSWER NO OF RESPONSDENTS
PERCENTAGE
YES 10 50%
NO 10 50%
Analysis
Over here out of 20 people in the survey 50% say yes and 50% say no.
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An organisational study on kotak Mahindra bank
GRAPH 4.3 DO you have any life insurance
INTERPRETATION
The following chat can be inferred that for now there has to be an improvement to increase the customers in life insurance department as it is very essential for safety. And also the awareness has to be increased.
TABLE 4.4 IN WHICH FORM IS YOUR PROPOSED INVESTMENT CURRENTLY IN ?
ANSWER No OF RESPONDENTS
PERCENTAGE
CASH 12 60
OTHER INVESTMENTS
6 30
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An organisational study on kotak Mahindra bank
OTHER 2 10
Analysis
HERE out of 20 people 60 percent invest in cash, 30 % invest in other investments, and 10 % invests in other options
GRAPH 4.4 IN WHICH FORM IS YOUR PROPOSED INVESTMENT CURRENTLY IN?
INTERPRETATION: - The following chart can be inferred that the customer mostly feels safe in investing cash and other investments than taking risk in others options like stocks, funds
TABLE 4.5 DO YOU HAVE AN INVESTMENT ADVISOR?
ANSWER NO OF RESPONDENTS PERCENTAGE
YES 14 70
NO 6 30
Analysis
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An organisational study on kotak Mahindra bank
Out of 20 people 70 % say yes and 30 % say no
GRAPH 4.5 DO YOU HAVE AN INVESTMENT ADVISOR?
INTERPRETATION
The following chart can be inferred that we get to know whether the customer is capable of paying the extra money to receive the information as to which is the right/best option to invest
TABLE 4.6 WOULD YOU LIKE TO RECIVE REGULAR UPDATES ON YOUR INVESTMENT?
ANSWER NO OF RESPONDENTS PERCENTAGE
YES 20 100
NO 0 0
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An organisational study on kotak Mahindra bank
Analysis
100 % out of 20 people choose yes. And 0 % people have selected no.
GRAPH 4.6 WOULD YOU LIKE TO RECIVE REGULAR UPDATES ON YOUR INVESTMENT?
INTERPRETATION
Any investor would like to receive updates about their regular income and progress. It can be through calls, mails, post etc.
TABLE 4.7 HOW MANY YEARS HAS IT BEEN THAT YOU HAVE BEEN INVESTING?
ANSWER NO OF RESPONDENTS PERCENTAGE
Two years or lesser 9 45
Five years or lesser 7 35
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An organisational study on kotak Mahindra bank
Ten years or lesser 3 15
Above ten yrs 1 5
Analysis
Out of 20 people 45 % choose two years, 35% choose 5 years and 15 choose ten years, and 5 % choose more than ten
GRAPH 4.7 HOW MANY YEARS HAS IT BEEN THAT YOU HAVE BEEN INVESTING?
INTERPRETATION: - This helps the company to decide whether the customer is capable to invest in long period of time or short period of time . And also analyze the capacity of risk of the customers
TABLE 4.8 IN WHICH TYPE OF INVESTMENT PRODUCT DO YOU PREFER TO INVEST MOST?
ANSWER NO OF RESPONDENTS
PERCENTAGE%
bonds 7 35
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An organisational study on kotak Mahindra bank
public equities 5 25mutual funds 4 20commodities 1 5investment property 3 15
Analysis
Out of 20 people 35% of people select bonds, 25% people select public equities, 20% of people select mutual funds, 5 % of people select commodities, and 15% of people select investment properties
GRAPH 4.8 IN WHICH TYPE OF INVESTMENT PRODUCT DO YOU PREFER TO INVEST MOST?
INTERPRETATION:-People feel safe investing in bonds . Whereas other investments like mutual funds and public equities involves risk
TABLE 4.9 DO YOU DO INVESTMENT TRADING ON A REGULAR BASIS?
ANSWER NO OF RESPONDENTS
PERCENTAGE%
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An organisational study on kotak Mahindra bank
ONCE IN A WEEK 3 15
ONCE IN A MONTH
9 45
ONCE IN A YEAR 8 40
Analysis
Out of 20 customers 15 % is chosen for once in a week, 45% is chosen for once in a month , and 40 % is chosen for once in a year
GRAPH 4.9 DO YOU DO INVESTMENT TRADING ON A REGULAR BASIS?
INTERPRETATION:-Once a month, Because it is the safer period to trade as well as earn returns than the rest others as they involve high risk and low returns
TABLE 4.10 DO YOU AGREE THAT YOU HAVE STRONG INVESTMENT KNOWLEDGE?
ANSWER NO OF PERCENTAGE
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An organisational study on kotak Mahindra bank
RESPONDENTS %
STRONGLY AGREE
4 20
AGREE 3 15
SOMEWHAT AGREE
5 25
DISAGREE 8 40
Analysis
From the survey we get to know that 20% of people have strong knowledge about investments, 15% of people have only agreed to it, 25% have vague idea about the investments, and 40% of people have no idea about the whole investment
GRAPH 4.10 DO YOU AGREE THAT YOU HAVE STRONG INVESTMENT KNOWLEDGE?
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An organisational study on kotak Mahindra bank
INTERPRETATION
Out of 100 %, we can see that more than 40 % of people have no idea about the investment knowledge, there by the education and the awareness has to increase and the advisory service has to increase to help the investors in investing.
TABLE 4.11 WHAT IS YOUR RISK TOLERANCE PERCENTAGE?
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An organisational study on kotak Mahindra bank
ANSWER NO OF RESPONDENTS
PERCENTAGE %
FIVE PERCENT OR LESSER
6 30
TEN PERCENT OR LESSER
11 55
MORE THAN TEN PERCENT
3 15
Analysis
Out of the 20 people 30% of people have risk tolerance under 5 %, 55% of people have under 10 %, and 15 % of people have above 10%
GARPH 4.11 WHAT IS YOUR RISK TOLERANCE PERCENTAGE?
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An organisational study on kotak Mahindra bank
INTERPRETATION
Here we can realize that the risk tolerance of the customers or the clients are very less as they have not much information about the investment options and how to gain higher returns. All the investors are very particular about their money and would not like to risk them by any mistake
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An organisational study on kotak Mahindra bank
TABLE 4.12 WHICH INVESTOR PROFILE SUITS YOU THE MOST?
ANSWER NO OF RESPONDENTS
PERCENTAGE%
EXPERIENCED INVESTOR
6 30
INEXPERIENCED INVESTOR
14 70
PROFESSIONAL INVESTOR
2 10
Analysis
Out of the survey we can see that 30% of people come under experienced investor, 70% of people come under inexperienced investor, and 10% come under professional investor
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An organisational study on kotak Mahindra bank
GRAPH 4.12 WHICH INVESTOR PROFILE SUITS YOU THE MOST?
INTERPRETATION
Large number of people have selected as inexperienced investor as they don’t have any knowledge about investments and the benefits. Here we the advisors have a role to play and help them in investing
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An organisational study on kotak Mahindra bank
TABLE 4.13 HOW SATISFIED ARE YOU WITH YOUR INVESTMENT?
ANSWER NO OF RESPONDENTS
PERCENTAGE%
VERY SATISFIED 6 30
SATISIFED 5 25
SOMEWHAT SATISFIED
6 30
DISSATISFIED 3 15
Analysis
From this table we can see that 60% of people say that they are somewhat satisfied and very satisfied with their investment made, and rest 25% say that they are satisfied and 15% say that they are not satisfied
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An organisational study on kotak Mahindra bank
GRAPH 4.13 HOW SATISFIED ARE YOU WITH YOUR INVESTMENT?
INTERPRETATION
The following chart can be inferred that 30% of people who are satisfied with the investments made, rest are advised to improve on the investment services
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An organisational study on kotak Mahindra bank
TABLE 4.14 IS YOU WILLING TO TAKE RISK WHILE MAKING YOUR INVESTMENTS?
ANSWER NO OF RESPONDENTS PERCENTAGE%
YES 8 40
NO 8 40
MAY BE 4 20
Analysis
From this table we can see that 40% of people are willing to take risk, where the rest 40% say no, and 20% say may be
GRAPHS 4.14 ARE YOU WILLING TO TAKE RISK WHILE MAKING YOUR INVESTMENTS?
INTERPRETATION
The following chart can be inferred that major people will like to take risk , where as some people say no or may be , as they still have to gain information before investing and being confident about the investment
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An organisational study on kotak Mahindra bank
TABLE 4.15 HOW FAST DO YOU WANT YOUR RETURNS FROM INVESTMENT?
ANSWER NO OF RESPONDENTS
PERCENTAGE%
IN ONE WEEK 9 45
IN ONE MONTH 7 35
OIN A YEAR 4 20
Analysis
From this table we can see that out of 20 people 45% want their returns in one week , 35 % want their returns in one month , and 20% people want their returns in one year
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An organisational study on kotak Mahindra bank
GRAPH 4.15 HOW FAST DO YOU WANT YOUR RETURNS FROM INVESTMENT?
INTERPRETATION
The following chart can be inferred that many people like to receive return on investments in a short period of time majorly on a week basis and rest people would like to make long term investments
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An organisational study on kotak Mahindra bank
Summary finding
Findings
There are 75% people who would prefer advisors opinion before
investing their money into any kind of investments options.
As per the survey, we can see that the investors feel safe and
secure when they are been given most preference and served well.
From the survey , it is seen that the investors are most likely to
take risk if the returns are within a month
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An organisational study on kotak Mahindra bank
SUGGESTIONS
1. KOTAK MAHINDRA BANK has taken few measures to maintain
loyalty of investor and avoid dissatisfaction.
2. Investor is the king of the market or business. They need to be satisfied,
kotak Mahindra bank is competitive enough to provide more services and
maintain chain of investors.
3. People have no time to visit bank, so kotak Mahindra bank should try to
focus on latest techniques like processing of wealth management through
internet
4. There should be more print & TV ads for the awareness of wealth
management
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An organisational study on kotak Mahindra bank
CONCLUSION
Kotak Mahindra bank is fine-tuned to improve on the services and
account opening facilities for its NRI customers and would also consider
the professional approach to improve on its services. It has really a
diversified type of organisation structure of different departments. And
Kotak Mahindra bank has its NRI braches at various countries. It has its
customers at all countries like Middle East countries. Asian countries
etc... The customer satisfaction with Kotak Mahindra is satisfactorily
good.
The schemes in NRI account of Kotak Mahindra is assisted all categories
of customers and it is available with list opening procedures to all the
customers. The Kotak Mahindra has relationship manager facility to carry
on the banking needs of customers with just a call far away. And it also
follows good employee appraisal techniques for employee retention and
to reduce the attrition rate.
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An organisational study on kotak Mahindra bank
Bibliography
Through internet
1.http://www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Kotak-Mahindra-Bank-Ltd/500247
2. http://aboutus.kotak.com/index.html
3. http://aboutus.kotak.com/kotak-mahindra-group/senior- management.html
4. http://www.kotak.com/bank/pressroom/pdf/Q4FY07_results.pdf
http://www.moneycontrol.com/competition/kotakmahindrabank/comparison/KMB
Through magazine and brouchers of kotak Mahindra bank
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An organisational study on kotak Mahindra bank
ANNEXURE INVESTMENT OPTIONS FOR INVESTORS IN WEALTH
MANAGEMENT
Name: ____________________________Age:______________________________Occupation:______________________ 1) Your present income: 1. Under 1, 00,0002. Under 5, 00,000 3. Under 1 cr4. Under 5 cr 2) Total assets: i. Under 5, 00,000 ii. Under 50, 00,000iii. Under 1 cr iv. Under 5 crv. Above 5 cr 3) DO you have any Life insurance: YES /NO 4) In which form is your proposed investment currently in? I. cash II. Other investment III. Other 5) Do you have an investment advisor? Yes / No6) Would you like to receive regular updates on your investment? Yes /No 7) How many years has it been that you have been investing?
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An organisational study on kotak Mahindra bank
a) Two years or lesserb) Five years or lesserc) Ten years or lesserd) More than ten years 8) In which type of investment product do you prefer to invest most?a) Bondsb) Public equitiesc) Mutual fundsd) Commoditiese) Investment property
9) Do you do investment trading on a regular basis?a) One in a weekb) Once in a monthc) Once in a year 10) Do you agree that you have strong investment knowledge?a) Strongly agreeb) Agreec) Somewhat agreed) Disagree 11) What is your risk tolerance percentage?a) Five per cent or lesserb) Ten per cent or lesserc) More than ten per cent 12) Which investor profile suits you the most?a) Experienced investorb) Inexperienced investorc) Professional investor 13) How satisfied are you with your investments?a) Very satisfiedb) Satisfiedc) Somewhat satisfiedd) Dissatisfied 14) Are you always willing to take risk while making your investments?a) Yes
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An organisational study on kotak Mahindra bank
b) Maybec) No 15) How fast do you want your returns from your investments?a) In one weekb) In one monthc) In one year
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