TOPIC

„Analyze Acquisition Strategy for popular banking products at operational

level with specific focus on Sales process, Sales team organization& Sales
incentive structure’

1
 A Project
On
Analyse the acquisition strategy for popular banking products at operational
level with specific focus on Sales process, Sales team organisation, and Sales
incentive structure
Project report submitted in partial fulfilment of the requirements for

The award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

K.Nageshwar Rao
(Reg. No. 08E11E0018)

DEPARTMENT OF MANAGEMENT STUDIES

Bharat Institute Of Engineering & Technology

(Affiliated To Jawaharlal Nehru Technological University)

Hyderabad

2008-2010
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 DECLARATION

I hereby declare that the project entitled A Study on “Analyse the acquisition strategy for
popular banking products at operational level with specific focus on Sales process, Sales
team organisation, and Sales incentive structure” is the work done by me at Somajiguda during
the year 2010 ad is submitted in the partial fulfilment of the requirement for the award of Master of
business Administration. I also declare that this project work is original and I have not copied from
any other research project work or other source.

Place: Hyderabad K.Nageshwar Rao

Date: 08E11E0018

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 ACKNOWLEDGEMENT

The satisfaction and exhilaration that accompanies the successful completion of all my
tasks would be incomplete without mentioning the people who made it possible, whose constant
guidance and encouragement, crowned all my efforts with success.

I express my sincere gratitude to my faculty guide Mr. SAURABH SHANKAR and

organisation guides MR. GUNTUR CHAKRAPANI (B.M) and MR. ATHUKURI MADHU
CHAKRAVARTHY (Senior Manager-Retail Liabilities) for extending their continuous
support, guidance and encouragement in completion. The project would not have been possible
without their support.

I also take opportunity to thanks CIMS, Hyderabad, for extending the guidance and co-
operation in completion of the report

K.NAGESHWARRAO

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CHAPTER- I INTRODUCTION

 INTRODCUTION

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 1.0 Acquisition Strategy

Acquisitions have always been a fundamental component of Sage‟s growth strategy. Through
acquisition, we have increased our customer base and expanded our business internationally.

Sage‟s acquisition strategy is based on three objectives:

To broaden the portfolio of our existing products and services we can offer our customers

To enter new geographic regions

To add new industry-specific applications to our product lines

Acquisitions also contribute to our customer base, with new customers who can migrate to the
broad Sage product range.

1.1 SALES PROCESS

A sales process is a systematic approach to selling a product or service. A growing body of

published literature approaches the sales process from the point of view of an engineering
discipline (see sales process engineering).

Sales process includes seller and buyer risk management, standardized customer interaction in
sales, and scalable revenue generation. A major advantage of approaching the subject of sales from
a "process point of view" is that it offers a host of well-tested design and improvement tools from
other successful disciplines and process oriented industries. In turn, this offers potential for quicker
progress. Quality expert Joseph Juran observed, "There should be no reason our familiar principles
of quality and process engineering would not work in the sales process". A sales team's
fundamental job is to move a greater number of larger deals through the sales process in less time.

Specific steps or stages in a sales process vary from company to company but generally include the
following elements:

From a seller's point of view, a sales process mediates risk by stage-gating deals based on
collection of information or execution of procedures that gate movement to the next step. This
controls seller resource expenditure on non-performing deals. Ideally this also prevents buyers
from purchasing products they don't need though such a benefit requires ethical intentions by the

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seller.

An effective sales process can be described through steps that walk a salesperson from meeting the
prospect all the way through closing the sale. Often a bad sales experience can be analyzed and
shown to have skipped key steps. This is where a good sales process mediates risk for both buyer
and seller. A solid sales process also has the dramatic impact of forecasting accuracy and
predictability in revenue results.

1.2 Sales Incentive

Remuneration offered to a salesperson for exceeding some predetermined sales goal. Sales
incentives are offered by manufacturers as part of a promotion for the sale of their goods. The
incentive may be in cash, or it may take the form of a special prize, such as a trip to an exotic or
exciting vacation place.

 Program design considerations

If programs are to be effective, all the factors that affect behavior must be recognized, including:
motivation, skills, recognition, an understanding of the goals, and the ability to measure progress.
Often companies turn to incentive programs to counter failures in meeting targets, poor behaviors
or performance, unengaged employees, poor morale or attitude, high turnover or loss of talent, or
increases in expectations from management.

Many companies mistakenly assume that what works for one organization will work well for all
organizations. Companies often attempt to create incentive programs without thinking in detail
about how each program feature will best suit their targeted audience.

A successful incentive program requires clearly defined rules, suitable rewards, efficient
communication strategies, and measurable success metrics. By adapting each element of the
program to fit the target audience, companies are better able to engage program participants and
enhance the overall program effectiveness.

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An incentive program represents a substantial investment to most organizations. Receiving a
sufficient return on that investment requires the full participation of the program participants.
Incentive programs are based upon the concept that effort increases as people perceive themselves
progressing towards their goal. Therefore programs should offer participants a variety of products
and services based on their unique interests and diverse needs. Successful programs need to
carefully develop their reward methods to keep participants eager to approach a new goal once
they have achieved a reward.

Once the program goals have been determined, every aspect of the program must be measured
against this goal in order to ensure the program's success in goal achievement. If successful,
objectives should provide measurable results allowing the organization to track performance and
measure the overall success of the program.

Points-based incentive programs are a type of program where participants collect and redeem
points for awards. Depending on the program type and the organizational objectives, points can be
awarded on a number of criteria including positive employee behavior, the demonstration of
organizational values, repeat customer purchases, the sale of new products, increased overall sales,
or even the use of proper safety precautions. In addition to point awarding, the levels at which
points can be redeemed can be customized by the organization and set at virtually any level. Points
programs are a way for organizations to motivate behavior over time while improving the
organizations‟ overall performance.

 Motivation

Employee incentive programs are programs used to increase overall employee performance.
Employee programs are often used to reduce turnover, boost morale and loyalty, improve
employee wellness, increase retention, and drive daily employee performance.

These programs are primarily used to drive sales, reduce sales costs, increase profitability,
develop new territory, and enhance margins. Sales incentive programs have the most direct
relationship to outcomes.

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A Sales Incentive Plan (SIP) is a business tool used to motivate and compensate a sales
professional (or sales agent) to meet goals or metrics over a specific period of time, usually broken
into a plan for a fiscal quarter or fiscal year

Selecting the appropriate rewards is vital to any programs success. The goal in choosing rewards is
to select items that will spark the participant‟s interest or feelings, and support the program‟s
objectives. Effective rewards will both motivate short-term behavior and provide motivation over
time. There are several types of rewards.

 Gift cards/certificates

Gift cards/certificates are prepaid retail cards or certificates which are redeemed at a later time at
checkout. In general, they are available in two types: (1) cards which carry a major credit card
brand, commonly referred to as universal gift cards (UGC), and are redeemable at all merchants
accepting the credit card brand; and (2) retailer-specific cards, issued by well-known merchants,
redeemable only through the issuing retailer. In the 2005 Incentive Federation Study of Motivation
and Incentive Applications, gift cards were ranked as the most frequently used type of corporate
reward.

 Experiential

Experiential rewards provide program participants with an experience. This form of reward gives
organizations the ability to offer their employees and customers interesting experiences as
incentives. Examples might include a seaplane flight and lunch, a two hour horse ride on the
beach, a day of sailing for two, a chance to meet a star athlete, or the use of a party planner for an
occasion of the recipient‟s choice. Experiential rewards allow participants to share their
experiences with others and reinforce the reward and the behavior that led to the giving of the
reward.

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1.3 Sales team organisation

 Working as a team

Although distinct from each other, the roles which are to work together to ensure world class
customer service is delivered. Every team member becomes fully immersed in working with their
Sales team Their combined efforts create exceptional results, which is why our clients continue to
enjoy all the benefits bank.

 Planners

Planners are integral to each sales operation. They work closely with team members, using various
data sources to construct the most effective sales team. Planners are also heavily involved in the
research sales Co-ordinators.

Sales Co-ordinators are the driving force who ensure that campaigns and promotions run smoothly,
in order to provide our clients with the best possible results. Sales Co-ordinators liaise with their
targets ensure that campaigns, promotions are executed as planned. Sales Co-ordinators develop
close relationships with a range of different people with whom relationship has to be build.

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CHAPTER- II LITERATURE REVIEW

 LITERATURE REVIEW

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2.0 Literature review

The money and the goodies were not my primary motivation. My philosophy was simple; "If you
win all the incentives there are to win, you couldn't help but be at or near the top every time."
Corporations use incentive programs to drive behaviour and I agreed to play the game and conform
to their wishes; what gets rewarded, gets done. The problem, from the vendors' point of view, is
that not all salespeople are motivated the same way. Consequently, not all incentive programs
work. Why is that? From my experience, I'll make the following observations:

1) The 80-20 Rule: Twenty percent of the salespeople make eighty percent of the sales and
profits. Too often, sales incentives - perhaps in an effort to be fair - are geared to the entire sales
force or VAR channel. The risk in a program like this is that the glove that fits everyone, in the
end, fits no one. Enlightened marketing strategists know that the top twenty percent are already
motivated. Simply put, a strategy that's geared to light a fire under the next twenty percent - the
next logical group - doubles the business in a more cost efficient manner.

2) The KISS Theory: Salespeople by nature are like electricity. They naturally take the path of
least resistance. That's not to say they are lazy or untoward. In fact, it's just the opposite. Good
salespeople look to simplicity to make things happen.

Often, incentive programs fail miserably because of innate complexities either in their recording
and reporting systems or in how rewards are won. If you put the salesperson in a position where he
or she is forced to assess "To get this, I first have to sell this, plus these and not these and they
must include these," you are creating a recipe for confusion, sales frustration and failure. In the
end, the incentive program becomes a disincentive! The remedy? Manufacturers must keep the
incentive program sweet and simple and attainable. There can be no ambiguity. Anything less will
result in a lack of interest, as well as a waste of time and money that can sometimes spill over into
other departments whose task it is to administer and account.

An Article from http://sbinfocanada.about.com/cs/marketing/a/incentiveprogps.htm

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2.1 Sales Process

The A stands for Attitude, B for Behaviour and C for Competency. Each of the A, B and C

components has three sub sets. In Attitude and Behaviour the three subsets are:

1. You

2. The Organization

3. The Market

In C, Competency, the three subsets are: Building Relationships, Qualifying prospects, and

prescribing solutions.

Each of these subsets breaks down into another three subsets. This leads to a sales process which is

as simple as the following eight steps, particularly when it applies to face to face selling B2B or

B2C.

1. Build Rapport

This 1st step in the sales process is most important in order to build the required trust necessary to

move forward. Without rapport, you might as well pack up and leave. Through the use of advanced

NLP techniques and the asking of open ended questions, the prospect feels comfortable and starts

to open up. The job of the sales person is to make their prospects comfortable and to initiate

conversation. The more they talk, the more you listen, the more you learn and the more they like

and trust you.

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 2. Set Parameters

Parameters or ground rules in the sales process are set once rapport has been established. The

parameters are set around the amount of time required for the meeting, and what the prospect's

objectives are for that time frame, followed by your objectives.

You must request permission to ask questions and to take notes, then, ensure the customer is

comfortable with the fact you may not be able to help them in the end. Remember you cannot

solve everyone's problem. A simple statement like, "I may or may not be able to help you. If I

can't, are you ok with me telling you that I cannot help? If I'm able to help, I will inform you

immediately... Are we comfortable this honest approach with each other and working on a "yes or

no" basis? "

3. Uncover buying motivators

Buying motivators are the reason people buy and they are usually emotional reasons. Your job is to

ask questions during this part of the sales process in order to uncover the buying motivators.

Without buying motivators, there is no reason to buy. No pain, no gain.

4. Uncover financial:

Ability in this step of the sale process, you summarize the buying motivators and uncover the

extent of their budget by asking a question such as, "Do you have a budget set aside for these

issues?"

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If the answer is no, ask, "How do you intend to proceed?" However, if the answer is yes, ask, "Can

you share it with me in round numbers?" If not, use bracketing techniques. It is your job not to

quote a price but to get them to quote their budget.

5. Uncover decision making

This step follows summarizing buying motivators and financial ability. You need to ask, "When

will you be making a decision?" and "Who, other than yourself, is involved in the decision making

process?" If you don't ask these questions, you don't get it!

Remember this is a step by step sales process and each step has to be fully completed before

moving onto the next step.

6. Summarize

In this step of the sales process, you summarize all that you have learned with regard to the buying

motivators, the financial ability and the decision makers. You have now qualified the prospect and

should be in a position to know if you can help them or not.

If not, tell them honestly just as you mentioned earlier in setting the parameters. If you can help

them, tell them you can and ask this question, "As discussed earlier, I believe I have a solution to

your needs. Are you still ok with giving me a yes or no answer subsequent to my presentation?"
http://www.articlesbase.com/business-articles/8-specific-simple-sales-process-that-works-for-b2b-and-b2c-881868.html#ixzz0v4NF1tmX

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2.0 RESEARCH METHODOLOGY

As the title of the project suggests the purpose” To study the Analyze Acquisition Strategy for
popular banking products at operational level with specific focus on Sales process, Sales team
organization& Sales incentive structure” Research comprise defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating Hypothesis.

In short, the search for Knowledge through Objective and Systematic method of finding solutions to
a problem is Research.

2.1 SOURCES OF DATA

Data is collected from primary as well as secondary source. For primary data customer were
personally intervened and for secondary data. Annual report, journals,

2.2 METHODOLOGY:

The methodology adopted in conducting this survey was quite simple. First there was collection of
data from various sources including personal interview. Then after scanning and properly
analyzing and interpreting the information available on hand, a final report was prepared.

1. PRIMARY DATA: Primary data was collected from the sample by a self-administered
2.questionnaire in presence of the interviewer.

2. SECONDARY DATA: The chief sources of secondary data were magazines, newspaper,
journals etc.

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2.3 RESEARCH DESIGN

Type of Research: - Descriptive research

Descriptive research is also called Statistical Research. The main goal of this type of research is to
describe the data and characteristics about what is being studied. The idea behind this type of
research is to study frequencies, averages, and other statistical calculations. Although this research
is highly accurate, it does not gather the causes behind a situation.

The regular interaction with the Employees and the Line Managers revealed about the various
strategies involved in performing business activities and gathering data using various techniques
and software applications.

Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main
characteristic of this method is that the researcher has no control over the variables;

2.4 DATA SOURCES

There are two types of data:

A. PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose of facilitating the study
is known as primary data. So in this research the data is collected from respondents through
questionnaire.

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B. SECONDARY DATA.

For the company information I had used secondary data like brochures, web site of the company
etc.

The Method used by me is Survey Method as the research done is Descriptive Research.

2.5 RESEARCH INSTRUMENTS

Selected instrument for Data Collection for Survey is Questionnaire.

2.6 SAMPLE SIZE:

The survey is conducted among 25 Employees.

Simple statistical tools have been used in the present study to analyze and interpret the data
collected from the field. The study has used percentile method and the data are presented in the
form of diagrams.

2.7 SCOPE OF THE STUDY

This study helps Analyze Acquisition Strategy for popular banking products at operational level
with specific focus on Sales process, Sales team organization& Sales incentive structure of Kotak
Mahindra Bank.

 The study provides knowledge of various products& investment services of Kotak Mahindra
Bank

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 The study helps to learn of work culture of organization.
 The study of also helps to learn Operations of the Bank.

2.8 OBJECTIVES OF THE STUDY

(a) To Study Sales Process at operational level of Kotak Mahindra Bank.

(b) To study Sales Incentive Structure of Kotak Mahindra Bank.
(c) To study Sales Team Organisation Structure of Kotak Mahindra Bank.

2.9 LIMITATIONS

The study could not be made that comprehensive due to time constraints. Some customers feel
uncomfortable to reveal some personal information relating to income etc. it might have happened
that some more essential information could have been collected.

 The proposed study has been organized with reference to Kotak Mahindra Bank at
Hyderabad city (Somajiguda branch) only, which limited the universe of the study.

 The bank officials have their own limitations to provide the information, particularly meant
especially for the internal use and unpublished; which also diluted the quality of the project
work.

 As the present work is the output of efforts made by the single person, therefore it may be
suffered from some sort of personal limitations.

 As the project work contains limited sample size of 25 employees so, it has also created
certain limitations.

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CHAPTER- III COMPANY PROFILE

 COMAPNY PROFILE
 JOURNEY SO FAR
 BOARD OF DIRECTORS
 AWARDS

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3.0 Company Profile

“Think Investment Think Kotak”

Kotak Mahindra is one of India's leading financial

institutions, offering complete financial solutions that
encompass every sphere of life. From commercial banking,
to stock broking, to mutual funds, to life insurance, to
investment banking, the group caters to the financial needs
of individuals and corporate.

The group has a net worth of over Rs.1, 800 crore and
employs over 4,400 employees in its various businesses. With a presence in 82 cities in India and
offices in New York, London, Dubai and Mauritius, it services a customer base of over 5, 00,000.

Kotak Mahindra has international partnerships with Goldman Sachs (one of the world's largest
investment banks and brokerage firms) and Old Mutual (a large
insurance, banking and asset management conglomerate).

The Kotak Mahindra Group was born in 1985 as Kotak Capital

Management Finance Limited. This company was promoted by
Uday Kotak, Sidney A. Pinto and Kotak & Company. Industrialists Harish Mahindra and Anand
Mahindra took a stake in 1986, and that's when the company changed its name to Kotak Mahindra

Finance Limited. Since then it's been a steady and confident journey to growth and success.

Established in 1984, The Kotak Mahindra Group has long been one of India‟s most reputed
financial organizations. In Feb 2003, Kotak Mahindra Finance Ltd., the group‟s flagship company
was given the license to carry on banking business by the Reserve Bank of India (RBI).This
approval creates banking history since Kotak Mahindra Finance Ltd is the first company in India to
convert to a bank. The license authorizing the bank to carry on banking business has been obtained
from the RBI in tune with Section 22 of the Banking Regulation Act 1949.

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KMBL was promoted by Mr. Uday.S.Kotak, Kotak and Company Ltd and Mr. Sidney &A.A.Pinto
under the name of Kotak Capital Management Finance Ltd on 21st Nov 1985 and obtained a
Certificate of Commencement of Business on 11th Feb 1986.

The bank customers have access to entire VISA network of 4500 ATM‟S in India and
800000ATM‟S worldwide accepted in more than 56000 establishments across India and 10 million
worldwide. The customer also has access to over 800 ATM‟s with sharing arrangements with UTI
BANK, of these 125 are in the NCR.

3.1 Journey So far

 1986 : Kotak Mahindra Finance Limited starts the activity of Bill Discounting
 1987 : Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market
 1990 : The Auto Finance division is started
 1991 : The Investment Banking Division is started. Takes over FICOM, one of India‟s
largest financial retail marketing networks

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  1992 : Enters the Funds Syndication sector
 1995 : Brokerage and Distribution businesses incorporated into a separate company -
Kotak Securities. Investment Banking division incorporated into a separate company -
Kotak Mahindra Capital Company
 1996 : The Auto Finance Business is hived off into a separate company - Kotak
Mahindra Primus Limited. Kotak Mahindra takes a significant stake in Ford Credit Kotak
Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services
Limited marks the Group‟s entry into information distribution.
 1998 : Enters the mutual fund market with the launch of Kotak Mahindra Asset
Management Company.
 2000 : Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance business.
Kotak Securities launches kotakstreet.com - its on-line broking site. Formal
commencement of private equity activity through setting up of Kotak Mahindra Venture
Capital Fund.
 2003 : Kotak Mahindra Finance Ltd. Converts to bank
 2004 : Launched India Growth Fund, a private equity fund.

 2005 : Kotak Group realigned joint venture in Ford Credit; their stake in
Kotak Mahindra Prime was bought out (formerly known as Kotak Mahindra
Primus Ltd) and Kotak group‟s stake in Ford credit Kotak Mahindra was sold.

Launched a real estate fund.

 Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital
Company and Kotak Securities.
 Launched a Pension Fund under the New Pension System.

Kotak Mahindra Bank Ltd. opened a representative office in Dubai

Entered Ahmadabad Commodity Exchange as anchor investor.

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3.2 Key group companies and their businesses

Kotak Mahindra Bank

The Kotak Mahindra Group's flagship company, Kotak Mahindra Finance

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

Kotak Mahindra Capital Company

Kotak Mahindra Capital Company Limited (KMCC) is India's premier

Investment Bank. KMCC's core business areas include Equity Issuances,
Mergers & Acquisitions, Structured Finance and Advisory Services.

Kotak Securities

Kotak Securities Ltd. is one of India's largest brokerage and securities distribution houses. Over
the years, Kotak Securities has been one of the leading investment broking
houses catering to the needs of both institutional and non-institutional investor
categories with presence all over the country through franchisees and coordinators. Kotak
Securities Ltd. offers online and offline services based on well-researched expertise and financial
products to non-institutional investors.

Kotak Mahindra Prime

Kotak Mahindra Prime Limited (KMP) (formerly known as Kotak Mahindra

Primus Limited) has been formed with the objective of financing the retail
and wholesale trade of passenger and multi utility vehicles in India. KMP
offers customers retail finance for both new as well as used cars and wholesale finance to dealers
in the automobile trade. KMP continues to be among the leading car finance companies in India.

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Kotak Mahindra Asset Management Company

Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management Company
(KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra
Mutual Fund (KMMF). KMMF manages funds in excess of Rs 20,800 crore and offers schemes
catering to investors with varying risk-return profiles. It was the first fund house in the country to
launch a dedicated gilt scheme investing only in government securities.

Kotak Mahindra Asset Management Company

Kotak International Business specialises in providing a range of services to

overseas customers seeking to invest in India. For institutions and high net worth
individuals outside India, Kotak International Business offers asset management through a range of
offshore funds with specific advisory and discretionary investment management services.

Kotak Mahindra Old Mutual Life Insurance Limited

Kotak Mahindra Old Mutual Life Insurance Limited is a joint venture between
Kotak Mahindra Bank Ltd. and Old Mutual plc. Kotak Life Insurance helps
customers to take important financial decisions at every stage in life by offering
them a wide range of innovative life insurance products, to make them financially independent.

Kotak Reality fund

Kotak Realty Fund deals with equity investments covering sectors such as hotels, IT parks,
residential townships, shopping centres, industrial real estate, health care,
retail, education and property management. The investment focus here is on
development projects and enterprise level investments, both in real estate
intensive businesses.

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3.3 BOARD OF DIRECTORS
 Dr. Shankar Acharya, Non-Executive Part-time Chairman
 Mr. Uday Kotak, Executive Vice-Chairman and Managing Director

Mr. Uday Kotak, B.Com, MMS (Masters in Management Studies), aged 50

years, is the Executive Vice-Chairman and Managing Director of the Bank and its principal
founder and promoter. Over the past 23 years, he has built a team of 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 also a Member on the Board of
Governors of the Indian Council for Research on International Economic Relations (ICRIER),
Governing Member of The Mahindra United World College of India and Member of the
Executive Board of Indian School of Business.

 Mr. Anand Mahindra

 Mr. Cyril Shroff
 Mr. Shivaji Dam
 Mr. C. Jayaram, Executive Director
 Mr. Dipak Gupta, Executive Director
 Mr. Asim Ghosh
 Dr. Sudipto Mundle

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Creating Banking History

Established in 1985, the Kotak Mahindra Group has long been one of India‟s most reputed
financial organizations. In February 2003, Kotak Mahindra Finance Limited, the group‟s
flagship company was given the license to carry on banking business by Reserve Bank of
India (RBI). This approval creates banking history since Kotak Mahindra Finance Limited is
the first company in India to convert to a bank.

3.4 Awards

1. 10th Best Employer in India.

Best Employers in India Study had started as early as October 2006 .Out of several companies
from diverse business backgrounds who applied, a total of 230 companies were invited to
participate in the Best Employers Study. The views of over 10, 60,000 employees have been
represented by over 44,000 employees across India, making this one of the largest employee
Research Study conducted in the country.

As a participating organization, the Bank went through a series of screening processes

including service documentation of HR processes and practices, focus group discussions and
on-site audit with the HR team.

At the end of the study, Hewitt released the list of top 25 Best Employers in India. On 13 th
April 07, in an Award ceremony held in Mumbai, Kotak Mahindra Bank Ltd. was declared as
The 10th Best Employer in India.

It was the only Bank in the top 10 Banking and Youngest Entrant in the entire list of Top 25.

27
 2. Kotak Mahindra Bank limited on 20th July was awarded The Best Private Bank award in
Southern Asia.
3. In April 2006 Kotak Mahindra Bank get Kotak Mutual Fund bagged The Lipper India Fund
Award for Best Bond Fund.

4. Mr. Uday S Kotak won the award in the service category for Kotak Mahindra Bank.

5. Kotak Mahindra Bank wins F&S Voice of Customer Award in 2007.

3.5 Competitors

• ICICI Bank
• HSBC
• HDFC Bank
• Standard Chartered Bank
• Citibank
• ABN Amro Bank

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3.6 Kotak Current Accounts

Key Highlights of Our Current Account Products

 Free Demand Drafts!

 Free at-par cheque books!
 Free RTGS & NEFT!
 Free out-station cheque collection!
 Free Cash deposits at home branch location!
 Free Home – banking service!
 Free debit card with flexible card limits & usage at any VISA ATM!
 Free Outward cheque returns!
 Active Money!
 Charges Reversal Offer!

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 ACE: Minimum AQB- 2, 50,000
Key Features of Ace Account
 Active Money – interest on idle current account balances!
 Credit Access – unsecured overdraft up to Rs. 10 lakhs!
 Free unlimited DDs payable at branch locations!
 Free DDs up to Rs. 30 lakhs p.m. payable at non-branch locations!
 Free NEFT & RTGS!
 Free payable at – par cheque book!
 Free cheque collection at branch locations!
 Free Business Debit Card!
 Free access at all VISA ATMs anywhere in the world!
 Free cash deposit up to 5 times of avg balance maintained p.m.!
 Free Home Banking service!
 Free Beat Cheque Pick-up service!

Elite: Minimum AQB- 1, 00,000

Key Features of Elite Account

 Active Money – interest on idle current account balances!
 Credit Access – unsecured overdraft up to Rs. 10 lakhs!
 Free 100 DDs p.m. payable at branch locations!
 Free DDs up to Rs. 10 lakhs p.m. payable at non-branch locations!
 Free NEFT & RTGS!
 Free payable at – par cheque book!
 Free cheque collection at branch locations!
 Free Business Debit Card!
 Free access at all VISA ATMs anywhere in India!
 Free cash deposit up to Rs. 10 lakhs p.m.!
 Free Home Banking service!
 Free Beat Cheque Pick-up service!
 AQB – Rs. 1 Lakh!

30
 Pro Account: Minimum AQB- 50,000

Key Features of Pro Account

 Active Money – interest on idle current account balances!

 Credit Access – unsecured overdraft up to Rs. 10 lakhs!
 Free 50 DDs p.m.!
 Free NEFT & RTGS!
 Free payable at – par cheque book!
 Free cheque collection at branch locations!
 Free Business Debit Card!
 Free access at all VISA ATMs anywhere in India!
 Free cash deposit up to Rs. 5 lakhs p.m.!
 Free Home Banking service!
 Free Beat Cheque Pick-up service!
 AQB – Rs. 50,000!

Edge Account: Minimum AQB- 25,000

Key Features of Edge Account

 Active Money – interest on current account!

 Credit Access – unsecured overdraft up to Rs. 10 lakhs!
 Free 25 DDs p.m.!
 Free NEFT & RTGS!
 Free payable at – par cheque book!
 Free cheque collection for cheques above Rs. 1 lakh!
 Free Business Debit Card!
 Access at all VISA ATMs anywhere in India!
 5 Free Txns per month at non-Kotak ATMs!

31
  Free cash deposit up to Rs. 3 lakhs p.m.!
 Home Banking service!

NEO: Minimum AQB- 10,000

Key Features of Neo Account

 50% charge reversal offer!

 Credit Access - unsecured overdraft up to Rs. 10 lakhs!
 Free NEFT & RTGS through Net Banking!
 Free payable at – par cheque book!
 Free Business Debit Card!
 Access at all VISA ATMs anywhere in India!
 5 Free Txns per month at non-Kotak ATMs!
 Free cash deposit up to Rs. 2 lakhs p.m.!
 Home Banking service!
 AQB – Rs. 10,000!

32
CHAPTER- III INDUSTRY PROFILE

 INDUSTRY PROFILE
 HISTORY OF BANKING IN INDIA

33
4.0 Industry Profile

Definition: Banking is one of the key drivers of the U.S. economy. Banking provides a safe place
to save excess cash, known as deposits. It also supplies liquidity to the economy by loaning this
money out to help businesses grow and to allow consumers to purchase homes, cars and consumer
products. Banks primarily make money by charging higher interest rates on their loans than they
pay for deposits.

The essential function of a bank is to provide services related to the storing of value and the
extending of credit. The evolution of banking dates back to the earliest writing, and continues in the
present where a bank is a financial institution that provides banking and other financial services.
Currently the term bank is generally understood an institution that holds a banking license. Banking
licenses are granted by financial supervision authorities and provide rights to conduct the most
fundamental banking services such as accepting deposits and making loans. There are also financial
institutions that provide certain banking services without meeting the legal definition of a bank, a
so called non-bank. Banks are a subset of the financial services industry.

The word bank is derived from the Italian banca, which is derived from German and means bench.
The terms bankrupt and "broke" are similarly derived from bancarotta, which refers to an out of
business bank, having its bench physically broken. Money lenders in Northern Italy originally did
business in open areas, or big open rooms, with each lender working from his own bench or table.

Typically, a bank generates profits from transaction fees on financial services and on the interest it
charges for lending.

Type of Banks

There are several different types of banks including:

 Central banks usually control monetary policy and may be the lender of last resort in the
event of a crisis. They are often charged with controlling the money supply, including
printing paper money. Examples of central banks are the European Central Bank and
the U.S. Federal Reserve Bank.

34
 Investment banks "underwrite" (guarantee the sale of) stock and bond issues and advise on
mergers. Examples of investment banks are Goldman Sachs of the USA or Nomura
Securities of Japan.

 Merchant banks were traditionally banks which engaged in trade financing. The modern
definition, however, refers to banks which provide capital to firms in the form of shares
rather than loans. Unlike Venture capital firms, they tend not to invest in new companies.

 Private Banks manage the assets of the very rich. An example of a private bank is the
Union Bank of Switzerland.

 Savings banks traditionally just did savings and mortgages, and have special charters, but at
present there is nothing inherently distinct about a savings bank.

 Offshore banks are banks located in jurisdictions with low taxation and regulation, such as
Switzerland or the Channel Islands. Many offshore banks are essentially private banks.

 Commercial bank, is the term used for a normal bank to distinguish it from an investment
bank. Since the two no longer have to be under separate ownership, some use the term
"commercial bank" to refer to a bank or a division of a bank that mostly deals with
corporations or large businesses.

 Retail banks primary customers are individuals. An example of a retail bank is Washington
Mutual of the USA.

 Universal banks, more commonly known as a financial services company, engage in

several of these activities. For example, Citigroup, a large American bank, is involved in
commercial and retail lending; it owns a merchant bank (Citicorp Merchant Bank Limited)
and an investment bank (Salomon Smith Barney); it operates a private bank (Citigroup
Private Bank); finally, its subsidiaries in tax-havens offer offshore banking services to
customers in other countries.

35
4.1 History of Banking in India

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for
withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank
transferred money from one branch to other in two days. Now it is simple as instant messaging or
dials a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalisation 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.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.

Phase1

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
36
(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 private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National
Bank Ltd. was set up in 1894 with headquarters at Lahore. 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). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking Authority.

During those day‟s public has lesser confidence in the banks. As an aftermath deposit mobilisation
was slow. Abreast of it the savings bank facility provided by the Postal department was
comparatively safer. Moreover, funds were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalised 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 subsidiary of State Bank of India was nationalised in 1960 on 19th July,
1969, major process of nationalisation 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 nationalised.

37
Second phase of nationalisation 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:

 1949: Enactment of Banking Regulation Act.

 1955: Nationalisation of State Bank of India.
 1959: Nationalisation of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalisation of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M.Narasimham, a committee was set up by
his name which worked for the liberalisation 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 is introduced. The entire
system became more convenient and swift. Time is given more importance than money.

38
 The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.
This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account

is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.

From Wikipedia, the free encyclopaedia

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with
the Government of India holding a stake), 31 private banks (these do not have government stake;
they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a
combined network of over 53,000 branches and 49,000 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.

39
Early History

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 the Bank of Hindustan, both of which are now
defunct. The oldest bank in existence in India is the State Bank of India, which 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, 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.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a
consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still
functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that
issues stock and requires shareholders to be held liable for the company's debt) It was not the first
though. That honour belongs to the Bank of Upper India, which was established in 1863, and
which survived until 1913, when it failed, with some of its assets and liabilities being transferred to
the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the Confederate
States, promoters opened banks to finance trading in Indian cotton. With large exposure to
speculative ventures, most of the banks opened in India during that period failed. The depositors
lost money and lost interest in keeping deposits with banks. Subsequently, banking in India
remained the exclusive domain of Europeans for next several decades until the beginning of the
20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;
branches in Madras and Pondicherry, then a French colony, followed. HSBC established itself
in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking centre.

40
The Bank of Bengal, which later merged with the Bank of Bombay and the Bank of Madras to
form the Imperial Bank of India in 1921.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881
in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in
1895, which has survived to the present and is
now one of the largest banks in India.

Around the turn of the 20th Century, the Indian

economy was passing through a relative period of
stability. Around five decades had elapsed since
the Indian Mutiny, and the social, industrial and
other infrastructure had improved. Indians had established small banks, most of which served
particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks and a
number of Indian joint stock banks. All these banks operated in different segments of the economy.
The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian
joint stock banks were generally undercapitalized and lacked the experience and maturity to
compete with the presidency and exchange banks. This segmentation let Lord Curzon to
observe, "In respect of banking it seems we are behind the times. We are like some old fashioned
sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments."

The period between 1906 and 1911, saw the establishment of banks inspired by
the Swedish movement. The Swedish movement inspired local businessmen and political figures
to found banks of and for the Indian community. A number of banks established then have
survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of
Baroda, Canara Bank and Central Bank of India.

The fervour of Swedish movement lead to establishing of many private banks in Dakshina
Kannada and Udupi district which were unified earlier and known by the name South Canara (
South Kanara ) district. Four nationalised banks started in this district and also a leading private
sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking".

41
From World War I to Independence

The period during the First World War (1914-1918) through the end of the Second World
War (1939-1945), and two years thereafter until the independence of India were challenging for
Indian banking. The years of the First World War were turbulent, and it took its toll with banks
simply collapsing despite the Indian economy gaining indirect boost due to war-related economic
activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following
table:

Years Number of banks Authorised capital Paid-up Capital

that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

42
Post-Independence

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal,
paralyzing banking activities for months. India's independence marked the end of a regime of
the Laissez-faire for the Indian banking. The Government of India initiated measures to play an
active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted into greater involvement of the
state in different segments of the economy including banking and finance. The major steps to
regulate banking included:

 In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and
it became an institution owned by the Government of India.
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) "to regulate, control, and inspect the banks in India."
 The Banking Regulation Act also provided that no new bank or branch of an existing bank
could be opened without a license from the RBI, and no two banks could have common
directors.

However, despite these provisions, control and regulations, banks in India except the State
Bank of India, continued to be owned and operated by private persons. This changed with the
nationalisation of major banks in India on 19 July 1969.

Nationalization

The RBI was nationalized on January 1, 1949 in terms of the Reserve Bank of India (Transfer to
Public Ownership) Act, 1948 (RBI, 2005b).[Reference www.rbi.org.in]

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 possibility to nationalise the banking industry. Indira Gandhi, the-
then Prime Minister of India expressed the intention of the GOI in the annual conference of the All
India Congress Meeting in a paper entitled “Stray thoughts on Bank Nationalisation." The paper
was received with positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI

43
issued an ordinance and nationalised 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, 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 GOI 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
nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace
of around 4%, closer to the average growth rate of the Indian economy.

The nationalised banks were credited by some, including Home minister P. Chidambaram, to have
helped the Indian economy withstand the global financial crisis of 2007-2009.

Liberalisation

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 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 setup 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

44
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.

Currently (2007), 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 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.

Current situation of Banking

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that
is with the Government of India holding a stake), 31 private banks (these do not have government
stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have
a combined network of over 53,000 branches and 49,000 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

45
Current Recession: How far, How deep?

The ongoing recession in economies worldwide that were supposed to be immune to such
downturns is becoming a serious threat to both the industrialized nations like the US and China
and nations constituting the third world countries like India. No doubt, analysts including
economists laureates have began to expect unusual consequences as they eye every stock going
down and witness market acquiring more instability. Fear of
stakeholders losing their stock values have only added to the
decline. Go by Barack Obama who said in a speech that it
will take another year for the situation to get better,
although added that the worse is yet to come before the
situation gets better.

Recession, in all three forms viz. financial, credit and banking, is not new. Over 150 financial
steeps we have seen since past 50 years of financial history. But the current situation is a far than
similar.

Most financial instabilities and economic crises of past used to originate in developing
nations earlier and G7 (industrialized) nations were then used to assist the victim economies by
providing all suggestions and solutions to break it. Effects on developed nations then were not a
major issue, or comparatively, not an issue at all. But this time, the reverse has happened with the
only difference being that both sides are affected. The current financial crises began in the US and
travelled slowly to affect EU and the eastern and Asian regions.

Dr. D. Subba Rao, RBI General in an interview said that the model of banking that the EU
nations has followed since long is been identified as insufficient and prone to give jerks in case of
instabilities like the current scenario. Privatizations seem to be replaced by the model of banking
we follow here in India. Specifically, India is giving inspiration to EU to adopt Nationalization of
Banking industry and other such industries that govern the economic fulcrum of a nation by larger
proportion.

46
 The Indian economy has posted an average growth rate of more than 7% in the decade
since 1997, reducing poverty by about 10 percentage points. India achieved 8.5% GDP growth in
2006, 9.0% in 2007, and 7.3% in 2008, significantly expanding production of manufactures. No
doubt, India is capitalizing on its large numbers of well-educated people skilled in the English
language to become a major exporter of software services and software workers. Due to our
liberalization policy that began in 1992 with Dr. Manmohan Singh, the then finance minister, our
economic expansion has helped New Delhi continue to make progress in reducing its federal fiscal
and trade deficit.

What hampers our growth and worries all income groups is the rising scale of inflation.
Besides controlling price and financial stability, enterprises and regulatory bodies such as the SEBI
and autonomous authorities like RBI have to ensure that enough credit goes to the developing
sectors such as real estate and inflation is supremely checked. Targeting low and stable inflation is
not easy if fiscal policy is poorly maintained so to devise an optimum fiscal policy is also an
urgent need.

Dr. Subbarao assures in an interview that in India, job cut would never be an issue, however,
companies who are largely dependent on FII and FDI would suffer. What is happening with the
Guangdong province of China is a wide scale consequence of this. The province that account for
over 1/3rd of China‟s international trade has seen a shut of over 2000 factories recently largely
because of no or a bare minimum export.

Of course we would not face a situation like the US as far as job cut is concerned, but there‟s
nothing to rejoice upon. We also need to turn to Small- and medium-scale enterprises (SMEs)
occupy an important and strategic place to vision an equitable economic growth and development.
Innovation and Entrepreneurship hold the key to enhancing the role of SMEs in improving the
Indian economy.

Enough liquidity into the banking sector has been the first step RBI has rightly taken,
followed by a cut in the Repo rate. What can augment to further stabilize the system would be a
comprehensive stimulus package for the banking sector so that investors may not loose enough

47
confidence to worsen the situation. Focus on improving the scale of foreign investment would only
mark a figure into the box. In a situation like the current, when domestic investors themselves are
refraining themselves from real investing or buying a new share, relaxing ECB norms in a hope to
provide a greater foreign investment window only adds a trifling point.

What is needed in context of foreign investment is to building strong measures first to attract
knowledge, innovation and investments from the overseas Indians including NRIs, PIOs and
Overseas Corporate Bodies (OCBs) on same parallels as we invite expect other foreign
investments according to the Foreign Exchange Management Act (FEMA) and Foreign Direct
Investment (FDI) policy.

48
CHAPTER-IV

 OBJECTIVE-I
 OBJECTIVE-II
 OBJECTIVE-III

49
OBJECTIVE - I

 SALES PROCESS AT OPERATIONAL LEVEL

 KNOW YOUR CUSTOMER

50
 SALES PROCESS

KNOW YOUR CUSTOMER (KYC)

Reserve bank of India has since issued guidelines on “KNOW YOUR CUSTOMER” & “CASH
TRANSACTIONS” under section 35(A) of the Banking Regulation Act, 1949 for implementation
by all banks. While existing instructions of RBI would continue to be implemented, new
provisions included in the KYC guidelines have been implemented with effect from 01.11.2002.

Care should be taken that the customers are not inconvenienced in this exercise.

Introduction

“KNOW YOUR CUSTOMER” (KYC) is the platform on which the banking system operates to
help control financial frauds, identify money laundering and suspicious activities, and for scrutiny
and monitoring of large value transactions. RBI has issued several guidelines for identification of
customers and monitoring of cash transactions.

Various guidelines in this regard are being consolidated here under:

Objective is to establish procedures / system:

 To verify the bona-fide identification of individuals / corporate opening an account

 To monitor high value transactions and transactions of suspicious nature in
accounts.

51
 The focus of the KYC is on back to basics & adopting an elaborate the
standard for obtaining comprehensive information regarding new (as well as old) customers at the
initial stage.

Sales Process Approach

Every team member will have his own way of doing business or getting his customers.
However there are 4 broad ways which are imperative and should never be ignored. They are:-

 Cold Calling
 References
 Tele-Calling
 Promotions

MIX
Tele 25% Cold Callings
40%

Cold calling
Promotion
References
Tele

Promotions
References 10%
25%

A right mix will help you get your right customer. This mix can also be called your “Sourcing
plan”. There has to be a mix of all elements in your strategy of getting a customer. Keep in mind

52
regular cold calling only helps you build a data base which would help you in getting more
business in the future.

Have a Target for yourself. Keep a few hours away, each day just for cold calling and tele calling.
This will become a part of your routine and you will soon see how you get business with much
more ease than before.

Don‟t ignore any element of the mix..... Customize it according to your style and convenience.

Steps on a call

The sales call has certain defined steps. Keeping these steps in mind will help us in developing a
structured call giving a professional edge to it. These are the following steps:-

 Pre call preparation

It‟s very important to be prepared before call. Depending on the profile of the customer we
are meeting, information on following lines need to be kept in mind.
• About his industry
• How the transactions are conducted in his| her type of business.
• Proprietorship\Partnership
• About the product you‟ll want to offer

 Approach

• Appointment: Good morning/Good after noon (greeting) Sir, I am Nagesh (First

name only) from Kotak Mahindra Bank. Thank you for the appointment. I would
like to share/discuss & offer our bank products with /to you.

53
 • Cold calling: Good morning/ Good after noon (greeting) Sir, I am Nagesh (First
name only) from Kotak Mahindra Bank. I would like to share? Discuss our products
with you.
• Visiting card
- Offering: Always keep visiting card in the front right pocket. Offer your
card to the customer, preferably with both your hands with the written side
facing him/her.
- Receiving: On receiving the customers card read it, never place it down
without reading it.
 Diagnosing

Diagnosing helps us to get to know the customer better. Here we use the strategy of BBF
• Business
- What type of business he/she is in?(manufacturing, trading, retail etc)
- Nature of business (are you dealing in garments etc)
- How long have he/she has been in this business?
- Is it a partnership or a self-proprietorship?
- What is the turnover of the company?
- Number of employees
- Any other branches if yes where all?
• Banking
- What facilities is He /she enjoying?
- What are his/her expectations from the bank?
- How he/she makes his payment?
- Which other places outside Delhi does he/she transact with?
• Family
- Where is he/she putting up?
- How many family members does he/she have?
- Who all are there in the family?

54
  Call process

 Do’s
- Be very confident while talking to a customer.
- Confidence can only come from experience or preparation.
- If you are new then experience can be replaced by preparation

A. Analysis of Sales process

Sales Process on
1. Personal Loans.
2. Home Loans.
3. Loans against Property.

1. Personal loan sales process

No matter what your financial needs are, our personal loans help you fulfil them.

Our Personal Loans help to make a difference in your life. No matter what your financial needs are
- unexpected expenses, school fees, wedding in the family, home improvement or that long
awaited vacation? Whatever the occasion, our range of Personal Loans can help.

The procedure is simple, documentation is minimal and approval is quick.

55
Key Features

 Avail loans from Rs.50,000-50 lakh*

 Quick Approval & hassle-free processing
 Minimal paperwork
 Flexible repayment options
 Repay with easy EMIs
 Convenience of service at your doorstep

Features & Benefits

 Avail loans from Rs.50, 000 - 50 lakh*: You can avail of a loan from Rs.50, 000 - 50 lakh*
for any purpose based on your income and repayment capacity and fulfil all your financial
needs.
 Quick approval: With a Kotak Mahindra Bank Personal Loan, you are not far away from
making your dreams come true. In as less as 72 hours you can turn your dreams into reality.
 Minimal paperwork & hassle free processing: Our minimal document requirements leave
you tension and hassle free. Additionally, worries are kept at bay, as no security or
collateral is required.
 Flexible repayment options: Our flexible loan tenors range from 12 - 60 months for salaried
customers and from 12- 36 months for businessmen / professionals, which don't
overburden you with a worry to pay heavy EMIs.
 Convenience of service at your doorstep: Our Loans are just a phone call away; you can fix
an appointment with any of our representatives and they could assist you in all your loan
formalities.

56
Documentation

Salariedindividuals Professionals Businessmen

Must be working Must be a Doctor (MS, MD,

for a Public MBBS, BDS) , C.A., Must have clean payment
Ltd co./ Architect, track record of
MNC/ large Consultant, Interior more than 1 year
Profile Pvt Ltd co. Designer of a previous loan.

23 - 58 years 23 - 58 years 23 - 58 years

Age resident Indian resident Indian resident Indian

Net monthly salary

of Rs.
10,000/-
with no Filed IT returns of
loans Filed IT returns of Rs.75,000/- or
outstanding Rs.75,000/- or more for the more for the last 2
Income . last 2 years. years

Minimum
educati
on Graduate Professional degree Graduate

Residence
telepho
ne Required Required Required

Years in city Min 1 year Min 1 year Min 1 year

Total work
experie
nce Min 1 year Min 5 years Min 5 years

57
 2. Home loan Sales process

Designed to suit your requirements

At Kotak Mahindra Bank, we offer highly customized facilities of availing home loans.
Importantly, we appoint a dedicated manager who takes customers through the entire process,
starting with the filling in of the application forms and culminating in the loan disbursement
process. This otherwise seemingly difficult process is made simpler and more convenient for the
customer. Sometimes, customers are unable to spare that extra time from their hectic schedules,
and the Bank Doorstep Service makes the home buying process seamless and pleasurable. A
relationship that is happy from the start is extended through the attention the customer gets through
his loan repayment tenure and beyond.

We believe that in order to succeed, we need to offer not only competitive products, but also the
best possible service and value-added features and benefits. In a market where the basic product is
largely similar, the differentiator is our ability to understand the customer's need completely and
structure the value-adds appropriately. It is with this thought in mind that we innovate constantly,
based on our interaction with the customer.

Home buying is an emotional decision and one must find the right partner to guide you
through the course.

Key Features

 High Eligibility for Businessmen

 Doorstep Service
 Attractive Interest Rates
 Simplified Documentation

58
  Quicker Turnaround time

Features & Benefits

The key advantages of Kotak Mahindra Bank Home Loans are:

 High Eligibility for Businessmen

 Doorstep Service
 Attractive Interest Rates
 Simplified Documentation
 Insurance Options to cover your home loans at attractive premium
 Quicker Turnaround time

3. Loan against property

Unlock the potential in your property and - benefit with lower interest rates

Unlock the potential in your property by availing a Loan Against Property (LAP). A LAP is a loan
given against the security of your existing property. The benefit is that interest rates on LAP are
generally lower than rates on other consumer loans

Key Features

 High loan eligibility for businessmen

 Loans amounts ranging from Rs.10 lakh - Rs.3 crore!
 Loans against residential as well as commercial properties

Features & Benefits

 Funds for all your needs

One can use this loan for a variety of purposes, like funding existing business, debt
consolidation, emergencies, education etc.

59
 High loan eligibility for businessmen

If you are a businessman, at Kotak we do not evaluate your loan eligibility on the basis of
your financial statements alone. We put our trust in you and your entrepreneurial
judgement, while understanding the nature of your business and related aspects. This
overall understanding helps us work out a financial solution that will match your needs.
And not just that, you can also avail of Kotak Commercial Property Loans that help your
business grow- literally! Our loans help you get that opportunity to expand your business
and develop it to its full potential.

 Kotak Commercial Property loans

You can also avail of Kotak Commercial Property loans - that help your business grow- in
the literal sense! Our loans help you get that Commercial space that with provide you the
opportunity to expand your Business and develop it to its full potential.

 Loans against residential as well as commercial properties

Loan against property facility is available against your residential as well as commercial
properties, for loan amounts ranging from Rs.10 lakh to Rs.3 crores.

60
OBJECTIVE-II SALES INCENTIVE STRUCTURE

 SALES INCENTIVE STRUCTURE

61
 Sales Incentive Structure

Profile of Kotak team member

Kotak team member should be perceived “out

standing” in teams of skills, knowledge, experience
and personal characteristics

SKILLS

 Listening
 Written and verbal communication
 Persuasion
 Analytical
 Resolute
 Negotiations
 Time Management Skills

A team member is not only a sales executive but is a representative of the bank. When he meets a
customer he is representing the bank. He is “Kotak” to the customer. What a customer thinks about
Kotak would be related to how the sales person has dealt with him/her.

Sales Force Loyalty Program

What is Kotak Race?

Kotak Program aims to have a Time Bound, Automatic, Transparent, Structured, Performance
Based, and Plan which will recognize and Reward consistent performers and Offer them Career
Enhancements Opportunities within the Organization

62
Kotak RACE Motto

RACE is targeted at the Sales Team Members and is a Recognition and Career Enhancement
program which works on four basic principles of
Passion, Pride, Prosperity & Progress.
 Passion to Perform
 Pride in belonging to a winning team
 Path to Progress in your career
 Prosperity in your life – through attractive rewards and growth

The RACE Objectives

 To lay down the expected Standards of Performance (SOP) for every Sales Team Member.
 To have a uniform set of parameters applied across branches and locations
 To use the SOP as a tool for measuring performance of the Sales Teams
 To Set Clear milestones to be achieved at every stage
 To reward every milestone achieved

 To define a Career path for every Sales Team Member

 To recognize talent and invest in high performers and prepare them for the future

 To “ Fast Track” the future growth opportunities for high performers

 To Create Circles of Excellence across the Sales Organization

ROTY
Objectives of ROTY
1. The Appraisal and Remuneration system will now be dynamic and will happen throughout the
year, which means performers, need not wait for the annual cycle for getting increments
2. The Min amount of increments at various stages will now be known upfront so performers will
know in advance the Effort to Reward ratio

63
3. The ROTY system is completely Transparent, Uniform and Automated which makes it a very
credible system.
4. The Team Members who are on a fast track will see a quantum growth in remuneration.

Level of Membership Time Period No of Months Average Score on

SOP Qualified the SOP score

card

Qualifier Preceding 3 months 2 Out of 3 Months > = 50

Challenger Preceding 3 months 3 Out of 3 Months > = 60

Achiever Preceding 6 months 4 Out of 6 Months > = 80

Hi Flier Preceding 12 months 10 Out of 12 > = 100

Months

Levels of RACE Membership Round of Appraisal

 The SOP score and RACE program performance will be used as the measure for Round
The Year Remuneration system

64
  Based on the SOP scores of preceding months, various qualifying criteria for each Level of
Membership will be worked out and the LOM achieved by the Sales Team will be
declared.

SOP:

SOP or Standards of Performance are benchmarks set for evaluating the performances of TMs,
TCs etc.Each product/ parameter for which the TMs have been assigned a target, have been
assigned an expected standard of performance along with a relative weightage for the same in the
overall assessment of performance.

For e.g. a CA TM shall be assessed on the parameters like CASA Nos., CASA Value, Insurance
OTC products & PL.

The overall SOP score is the weighted average of the SOP scores on each individual parameter.

The SOP Score shall be calculated for each TM at the end of every month for his/her performance
in the (T-2)th month. For e.g. the SOP for Jan 09 shall be calculated at the end of Mar 09. This is
done because the CASA value, which is part of the SOP parameters, is taken for the first 3 months
of account opening.

PLVP:

PLVP or Performance Linked Variable Pay in simple terms is the incentives that a TM/ TC would
earn for his performance, over & above the fixed salary paid to him.

The variable pay/ incentive are directly linked/ proportional to the actual performance against the
set SOPs. This means that better the performance, higher is the variable pay!The PLVP shall be
calculated for each TM/TC every month for his performances in the (T-2)th month as explained
aboveThere shall be a target CTC fixed for each branch category. For the purpose of calculation of
PLVP, the Target CTC can be proportionately higher or lower, depending upon the SOP scored by
a TM for a month.

65
 Thus, PLVP for the month = Target CTC @ SOP for the month – Fixed CTC

12 12

Benefits of SOP & PLVP Structure:

1. Time bound, automatic, transparent, structured & performance based system of

evaluation of performances & payment of incentives.

2. A uniform set of parameters applied across branches and locations bringing in standardization.

3. Enables self – evaluation by the TM/TC

4. Eliminates any scope for any kind of subjectivity or biases towards or against someone. It is
purely based on set parameters.

SOP & PLVP Scheme for SA TMs

Branch Categorization: All branches are now categorized into two types:

Category I: Branches located in all locations, where there are separate TMs for CA and SA.
Branches located in metro and urban locations will belong to Category I.
Category II: Branches where we have common CASA TMs. CASA TMs are present only in
Semi-urban & rural location branches.
Standards of Performance (SOP): The SOP score is calculated as the weighted average of actual
performances vs. standards on various parameters as follows:

66
 SOP Parameter Standard of Performance

Weightage

Cat I Cat II

CASA Units (Qualified) 35% 13 16

CASA Value 35% 6,00,000 6,00,000

OTC – KSAP (Nos) 15% 2 2

TD (in Rs.) 15% 6,00,000 6,00,000

Total 100%

However in view of the Accelerated acquisition plan for the 1st Quarter the table is modified as
under :

SOP Parameter Weightage Standard of Performance

CAT-I CAT-II

CASA Units (Qualified) 35% 13 16

CASA Value 35% 6, 00,000

OTC – KSAP (Nos) 15% 2 2

TD (in Rs.) 15% 6, 00,000

Total 100%

67
SOP TABLE ONLY FOR 1ST QUARTER is as below

SOP Parameter Weightage Standard of Performance

Cat I Cat II

CASA Units (Qualified) 75% 13 16

CASA Value 0% 6,00,000 6,00,000

OTC –KSAP (Nos) 15% 2 2

TD (in Rs.) 10% 6,00,000 6,00,000

Total 100%

Calculation of CASA Units: CASA units will be calculated as per the table below for qualified
accounts only.

Type of Account Units/Account Type of Account Units/Account

Any Current

SA Edge 1 Unit Account ( other 2 Units

than CA synergy)

SA Pro 2 Units New CRN thru 1 Unit

TD

SA Synergy /

SA Ace 5 Units CA Synergy 0 .75 Unit

Accounts #

68
SA Nova* 1 Unit Corp Sal 1 unit for 3

accounts

SA Classic* 2 Units Trinity Account 1 Unit each for

Any NR Account 3 units new Demat and

new trading a/c. SA Units as per

the a/c type

69
OBJECTIVE-III SALES TEAM ORGANISATION STRUCTURE

 SALES TEAM ORGANISATION STRUCTURE

70
 Corporate Office

Zonal Business Zonal Sales Regional Salary

Manager Manager Manager

Regional business Regional Sales Key Account

Manager Manager Manager

Area Manager Branch ASM Corp. Sal. Sales

Mgr(<500)

Branch Managers BSM/SM Relation Ship

Officer

Service managers SS/SDO/SO/RO TM TL/TM- Delivery

(A/C op-Support)

BRM

Area Managers –
Priority Banking

Priority Banking
RM(PRM’s)

71
CHAPTER-V DATA ANALYSIS AND INTERPRETATION

 ANALYSIS

72
TABLE 1:

1Q. Are you satisfied with the support from the HR department?

Particulars No. of Respondents Percentage

Highly satisfied 25 100

Satisfied 0 -

Neutral 0 -

Dissatisfied 0 -

Highly Dissatisfied 0 -

Total 25 100

16

14

12

10 Highly Satisfied
Satisfied
8
Neutral
6
Dissatified
4 Highly Dissatified

0
Highly Satisfied Neutral Dissatified Highly
Satisfied Dissatified

Interpretation

From the above table out of 25 respondents all the respondents specified that they are very
satisfied with the support from Hr department.

73
Table 2:

2Q: Management is really interested in motivating people?

Particulars No. of Respondents Percentage

Strongly Agree 22 88

Agree 3 12

Neutral 0 -

Disagree 0 -

Total 25 100

25

20
Disagree
15
neutral
10
Agree

5
Strongly

0
Strongly Agree neutral Disagree

Interpretation

From the above table out of 25 respondents more than half that is 88% respondents specified that
they strongly agree with the question. Where has 12% are just agreed this shows that management
shows better interest in motivating the employees.

74
 Table:3

3Q. Goals set by the organization motivate you to work?

Particulars No. of Respondents Percentage

Strongly Agree 5 20

Agree 15 60

Neutral 5 20

Disagree 0 -

Strongly Disagree 0 -

Total 25 100

16
14
12
Disagree
10
8 neutral
6
4 Agree

2
Strongly
0
Strongly Agree neutral Disagree Strongly disagree

Interpretation:

From the above table out of 25 respondents more than half that is 20% respondents specified that
they strongly agree with the question. Where 60% has are agreed and another 20% are neutral so
this shows that the goals set by management are very motivate to employee.

75
 TABLE 4

4Q which type of incentive motivates you more?

Particulars No. of Respondents Percentage

Financial 18 72

Non Financial 5 20

Both 2 8

Total 25 100

20
18
both
16
14
12 non
10 financial

8
6 Financial

4
2
0
Financial Non Financial Both

Interpretation:

From the above table out of 25 respondents more than half that is 72% respondents specified that
they opt for only financial incentives than the gift or both.

76
 TABLE 5

5Q How far are you satisfied with the incentive provided by the organization?
Particulars No. of Respondents Percentage

Highly satisfied 5 20

Satisfied 3 12

Neutral 17 68

Dissatisfied 0 0

Highly Dissatisfied 0 0

Total 25 100

18

16

14

12
Highly Satisfied
10 Satisfied
8 Neutral
6 Dissatified

4 Highly Dissatified

0
Highly Satisfied Neutral Dissatified Highly
Satisfied Dissatified

Interpretation:

From the above table out of 25 respondents more than half that is 68% respondents specified that
they are neutral with the incentive structure provided by the organisation this is because incentives
are paid after 2months.

77
 Table 6

6Q. Do you think that you get a proper reward for the effort you make?

5 Strongly Agree 4 Agree 3 Neutral 2Disagree 1Strongly Disagree

No Factors Rates

1 Reasonable periodical increase in salary 3

2 Job security exist in the company 5

3 Good relationship with the co-workers 5

4 Effective performance appraisal system 4

5 Effective promotional opportunities in organization 3

6 Good Safety measures adopted in the organization 5

7 Performance appraisal activities are helpful to get motivated 5

8 Support from co-workers is helpful to get motivated 4

9 Constant support from the seniors act as motivation 3

10 Challenging work environment 3

11 Company recognize and acknowledge your work 3

12 Brand equity of the organization in the market 3

13 Helping out in personal problems 2

14 Good working conditions 3

Many respondents specified that job security, relationship with co-workers, and safety measures
are proper reward system which were strongly agreed by the many employees.

78
 Table 7

Rank the following factors which motivate you the most

5 Strongly Agree 4 Agree 3 Neutral 2Disagree 1Strongly Disagree

No Factor Rank

1 Salary Increase 4

2 Promotional 3

3 Leave 2

4 Motivation 4

5 Recognition 5

6 Autonomy 3

7 Self Power 3

8 Healthy Competition 5

9 Commercial Success 5

Interpretation

The respondents specified that Increase in Salary, Promotional, And recognition which were
strongly agreed where leaves are disagreed.

79
 Particulars No. of Respondents Percentage

Influence 15 40

Does not Influence 8 40

No Opinion 2 20

Total 25 100

Table 8
8Q. Do you think that the incentive and other benefits will influence your performance?

16
14 No Opnion
12
10
8 Does not
6 Influence

4
2 Influence
0
Influence Does Not No Opnion
influence

Interpretation

The respondents specified that their performance is influenced by the incentive and other benefits
because the incentives are the extra benefits which will clear the needs of the employee and it
increases the income level of the employee so their performance is influenced by

80
Table 9
9Q. Do you think that you get a proper reward for the effort you make?

Particulars No. of Respondents Percentage

Almost always 10 40

Very seldom 10 40

occasionally 5 20

Frequently 0 0

Almost never 0 0

Total 25 100

12

10 Ocassionally

6
Very Seldom
4

2
Almost Always
0
Almost Very Seldom Ocassionally Frequently Almost
Always never

Interpretation

40% of the employees specify that they get proper rewards for their work but out of 80, 5
employee(20%) said that they get occasionally. But through my study in bank says that
Kotak bank gives proper reward to the employees which creates Kotak bank to achieve
Best Employer Award in 2010

81
Table 10
10Q. Does the management involve in decision making which are connected to your
department?

Particulars No. of Respondents Percentage

Yes 20 80

No 2 8

Occasionally 3 12

Total 25 100

25

20 Ocassionally

15
No
10

5 Yes

0
Yes No Ocassionally

Interpretation

80% of the employees specify that Management involve in decision which are connected to
their department, its quiet common that management obviously involves but nature of this
question is to how many employees are aware of the management decisions and
involvement.

82
CHAPTER-VI CONCLUSION, FINDINGS AND SUGGESTION

 CONCLUSION
 FINDINGS
 SUGGESTION

83
CONCLUSION:

Kotak Mahindra bank follows new sales strategies to attract the customer for account opening, on
the other side it provides better incentives, gifts, GO CASA, Maha sangram competitions to
employees as a motivation strategy and also to increase sales (account openings both on current
and savings. Total results in terms of sales are more when compare to all other private bank in
Hyderabad all this is because Kotak bank constructs strong sales team organisation.

FINDINGS

1. As employees reach their targets in a month but they are paid incentives after 3 months.
2. Every employee should be recognised and motivated by the sales managers.
3. As many of the employees are not aware of calculations of SOP.
4. As sales executives are not able to get proper documentation and filling procedure which
creates delay in account opening.
5. Proper leads are to be generated by the sales managers.

SUGGESTIONS

1. For every employee who reached

Employees are to be motivated by providing incentives on the next month after they reach
their targets.
2. Every employee should be recognised by the bottom management and appreciate them by
providing certain gifts or cash as motivation strategy
3. Employees are to be educated properly in regards SOP calculation.
4. Employees are to be educated document collection and filling the application forms so that
small errors can be reduced which will decrease form rejections and faster accounting
openings.
5. Sales manager should generate proper leads which makes the executives to increase the
sales and to be encouraged in terms of reaching their targets

84
CHAPTER-VII BIBLOGRAPHY

 BIBLOGRAPHY

85
 BIBLOGRAPHY

WEBSITES

WWW.EASSYS.COM
WWW.KOTAK.COM
WWW.STOCDOC.COM
WWW.SCRIBD.COM

86
CHAPTER-VIII ANNEXURES

 QUESTIONNAIRE

87
 Questionnaire

Respected Sir/madam.

As part of my project I would like to gather some information from you which will help me in an
in-depth study of the project. I would be obliged if you cooperate with me in filling the
questionnaire. Since the questionnaire is being used for academic purpose the information gathered
will be strictly confidential.

K.Nageshwar Rao.

Kindly fill the following

(Please put tick mark in appropriate box)

1. What is “Incentive structure in Kotak” for you?

2 Are you satisfied with the support from the HR department

Highly satisfied Satisfied Neutral
Dissatisfied Highly Dissatisfied

3 Management is really interested in motivating people.

Strongly Agree Agree Neutral
Disagree Strongly Disagree

4 Goals set by the organization motivate you to work?

Strongly Agree Agree Neutral
Disagree Strongly Disagree

5 Which type of incentive motivates you more?

Financial Non financial Both

6 How far are you satisfied with the incentive provided by the organization?
Highly satisfied Satisfied Neutral
Dissatisfied Highly Dissatisfied

88
7 Do you think that you get a proper reward for the effort you make?
Almost never Very seldom occasionally
Frequently Almost always

8 Please provide the following Rates:

(5 Strongly Agree 4 Agree 3 Neutral 2Disagree 1Strongly Disagree)

No Factors Rates

1 Reasonable periodical increase in salary

2 Job security exist in the company

3 Good relationship with the co-workers

4 Effective performance appraisal system

5 Effective promotional opportunities in organization

6 Good Safety measures adopted in the organization

7 Performance appraisal activities are helpful to get motivated

8 Support from co-workers is helpful to get motivated

9 Constant support from the seniors act as motivation

10 Challenging work environment

11 Company recognize and acknowledge your work

12 Brand equity of the organization in the market

13 Helping out in personal problems

14 Good working conditions

89
9 Rank the following factors which motivate you the most
(Rank 1234…. Respectively)
No Factor Rank

1 Salary Increase

2 Promotional

3 Leave

4 Motivation

5 Recognition

6 Autonomy

7 Self Power

8 Healthy Competition

9 Commercial Success

10 Power

10 Do you think that that the incentive and other benefits will influence your performance?
Influence Does not influence No opinion.

11 Does the management involve in decision making which are connected to your
department?
Yes No Occasionally

12 What change can be made to change the work environment?

Thank you for your kind cooperation.

90