taukir synopsis & report

8/6/2019 Taukir Synopsis & Report

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AA PPRROOJJEECCTT RREEPPOORRTT

ON Kotak Smart Advantage Plans for Wealth Maximization of Customers And Result

There On

Submitted in partial fulfillment for the award of the degree

Master of Business Administration

Submitted by,

TAUKIR AHMAD USMANI

MBA Semester lV

Reg. No-520919269

Approved By,

Nishita Shrivastava

. Guided By,

Mr. Sudeep Banerjee

Branch Sales Manager

Kotak Mahindra Bank
http://www.google.co.in/imgres?imgurl=http://www.smeloanshub.com/admin/banks_logo/1294337916_kotak-logo.gif&imgrefurl=http://www.smeloanshub.com/bank_overdraft_fees.php?overdraft=Kotak%20Mahindra%20Bank&usg=__cDv1__KNNML4t3iy8evY4FD7Oxo=&h=78&w=300&sz=8&hl=en&start=1&zoom=1&tbnid=eQOob1ovtkQ8BM:&tbnh=30&tbnw=116&ei=bYd4TaHZFM7NrQfU1J3qBQ&prev=/images?q=kotak+mahindra+bank+logo&um=1&hl=en&sa=X&tbs=isch:1&um=1&itbs=1


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ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors.

They have provided me with the valuable guidance, sustained efforts and friendly approach.

It would have been difficult to achieve the results in such a short span of time without their

help.

deem it my duty to record my gratitude towards the project guide Mr. Sudeep

Banerjee(Branch Sales Manager, Kotak Mahindra Bank), who devoted his precious time to

interact, guide and gave me the right approach to accomplish the task and also helped me

to enhance my knowledge in understanding the project.


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DECLARATION

I TAUKIR AHMAD USMANI hereby declare that this project titled Kotak Smart Advantage

Plans for Wealth Maximization of Customers And Result There On has been prepared by

me, under the guidance Mr. Sudeep Banerjee This is after undergoing the training Kotak

Mahindra Bank,Raipur branch(C.G). which is in partial fulfillment of Masters Program in

Business Administration, Sikkim manipal university.

I further declare that this project report has not been submitted earlier to any other

University or Institute for the award of any degree or diploma.

SIGNATURE

TAUKIR AHMAD USMANI

MBA Semester lV

Reg. No-520919269


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BONAFIDE CERTIFICATE

Certified that this project report titled Kotak Smart Advantage Plans for Wealth

Maximization of Customers And Result There On is the bonafide work of TAUKIR

AHMAD USMANI who carried out the project work under my supervision.

Signature Signature

Head of the Department Faculty in Charge

. Ms.Nishita Shrivastava

MBA MBA

Adharshila Shikshan Sangh, Adharshila Shikshan Sangh,

Jaistambh chowk, Raipur(c.g) Jaistambh chowk, Raipur(c.g)


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EXAMINERS CERTIFICATE

This is to certify that TAUKIR AHMAD USMANI student of MBA IV semester ,Sikkim

Manipal University ,Learning Center Raipur has submitted the project report entitled

Kotak Smart Advantage Plans for Wealth Maximization of Customers And Result

There On for the partial fulfillment of the award of MBA IV semester and has

completed this project in scheduled time.

We approve the sincere work done on this project and the project report.

INTERNAL EXAMINER EXTERNAL EXAMINER


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EXECUTIVE SUMMARYThe basic concept of my project is Kotak Smart Advantage Plan Verses Competitors

product for Wealth Maximization of Customers And Result There On This project is

based on survey and according to that requirement, customers portfolio has been

designed. Through this survey I propose to give the actual data to KMBL that what are the

responses or feedback of their existing customers regarding the investment management

advices of KMBL . I have prepared Questionnaires for the reason. Through the feedback of

the existing customers of the KMBL, Ill get to know what are the perceptions of people

towards investment and how do they like their portfolio to be.

The topic of the project has been given by project guide Mr. Sudeep Banerjee ( Sales

manager) KMBL, raipur. As per our discussion the topic has been found very important as

far as KMBL is concerned. It is only around 2 & half year old at Raipur. So being a 3rd

summer trainee of KMBL Raipur branch, it was a great opportunity for me to take up this

topic as a challenge. Because the result of this project or survey will be very much beneficial

for me as well as companies point of view. They will get to know about the strength and

weaknesses and they will know that how much of market they have captured in this period

of 2 & half year. What people think about this Bank?

I started my summer training or project on 4th june. To know this fact and data I went to

the existing customers of Kotak Mahindra Bank ltd. I collected all the data from existing

customers of Kotak Mahindra bank ltd. through questionnaires in Raipur city. I have


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prepared these questionnaires with the help of my project guide by keeping into the Mind

that these questionnaires are very much beneficial from companys mind , the result of this

survey will help the bank to know their strengths and weakness and according to that they

will take corrective actions on those areas. While I was studying about the bank I found that

within a period of 1 Year Kotak Mahindra Bank Ltd has captured that Raipur market quite

nicely. And while I was analyzing the data that I had collected through questionnaires I

found that the products and service that Kotak Mahindra Bank ltd is the major part because

of which customers are attracting towards this bank. Because the service and products

Kotak is providing is quite unique from other banks apart from this the major weak point or

the lacking point that Kotak Mahindra bank has to consider is the promotional activity of

Kotak Mahindra Bank is very poor. Many persons are there who dont know about this bank.

Another thing is that minimum a/c balance in this bank is quite high i;e.,AQB (average

quarterly balance).

Apart from my project I did business for the Bank. I used to go out to the market for

selling products of the bank and I really sold their products. Due to this I grab great

experience to communicate with different types of customers, which was really good

experience and will help me in my future course of life. The major part of my training is I

went to business people, doctors managers of different companies and many more. During

my summer training I was called by my project guide to give presentations on the Bank

products in front of all the employees after studying the products and services. And after

the presentations they used to ask questions to me. And I really appreciated by my staff

members and colleges. During the collection of the data I found some difficulties like the

customers had no time to give time or they were too busy with their works and in most


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cases they were not available at their places. I generally went into the market in hard

sunlight and manier times its rains. I took some action to solve these problems like I took

data through telephone, observation.

There is one thing that I have found that the peoples working at Kotak Mahindra Bank

ltd are very much helpful in all areas. Every time they come to me and told me that they are

available at anytime for me for anything, which really boost me and motivates me towards

my goal and objectives. The culture of Kotak Mahindra bank ltd. is very much friendly and

cool to work there. The boss or Branch manager as well as Branch sales manager they both

plays a very vital role to boost their employees time to time.

I completed my project on ------------by giving a thanks ceremony party to all people of

Kotak Mahindra Bank Ltd. Who helped me during the project. I have achieved my all

objectives of my project.


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TABLE OF CONTENT

NO. TOPIC PAGE NO.

CHAPTER 1 INTRODUCTION OF ORAGANIZATION 9-17

VISION OF KOTAK 18

PRODUCTS AND SERVICES 19-21

INTRODUCTION TO TOPIC 22

OBJECTIVE OF STUDY 23

LITERATURE REVIEW 24-50

CHAPTER 2 RESEARCH METHDOLOGY 51

SOURCES OF DATA 52

QUESTIONNAIRE DESIGN 52

SAMPLING METHOD 53

STATISTICAL TECHNIQUES 53

EXECUTION OF THE PROJECT 53

CHAPTER 3 ANALYSIS AND INTERPRETATION OF DATA 54-70

CHAPTER 4 FINDING, SUGGESTIONS & LIMITATION 71-75

- BIBILIOGRAPHY & WEBLIOGRAPHY 76

- ANNEXURES 77-78


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CHAPTER-1


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COMPANY PROFILE

The Kotak Groups Corporate Identity

Slogan or Punch line Think investment, think kotak.

The Kotak Mahindra Group

Kotak Mahindra is one of India's leading financial conglomerates, 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.


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The group has a net worth of over Rs. 3,380 crore, employs around 12,300 people in its

various businesses and has a distribution network of branches, franchisees, representative

offices and satellite offices across 320 cities and towns in India and offices in New York,

London, Dubai, Mauritius and Singapore. The Group services around 2.9 million customer

accounts.

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 (through www.kotaksecurities.com) and offline services based

on well-researched expertise and financial products to non-institutional investors.
http://www.kotaksecurities.com/http://www.kotaksecurities.com/http://www.kotaksecurities.com/


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

Mahindra Primus Limited) has been formed with the objective of financing the retail and

wholesale trade of passenger and multi utility vehicles in India. KMP offers customers retail

finance for both new as well as used cars and wholesale finance to dealers in the

automobile trade. KMP continues to be among the leading car finance companies in India.

Kotak Mahindra Asset Management Company Kotak Mahindra Asset Management

Company (KMAMC), a subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak

Mahindra Mutual Fund (KMMF). KMMF manages funds in excess of Rs 17,200 crore and

offers schemes catering to investors with varying risk-return profiles. It was the first fund

house in the country to launch a dedicated gilt scheme investing only in government

securities.

Kotak Mahindra Old Mutual Life Insurance Limited Kotak Mahindra Old Mutual Life

Insurance Limited is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual plc.

Kotak Life Insurance helps customers to take important financial decisions at every stage in

life by offering them a wide range of innovative life insurance products, to make them

financially independent.


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Group Structure

*Includes direct and indirect holdings.

Group Management

Mr. Uday Kotak Executive Vice Chairman & Managing Director

Mr. Shivaji Dam

Mr. C. Jayaram

Mr. Dipak Gupta

Board of Directors


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Dr. Shankar Acharya ( Chairman ) Mr. Uday Kotak ( Executive Vice Chairman and Managing Director )

Mr. Anand Mahindra

Mr. K.M.Gherda Mr. Cyril Shroff Mr. Pradeep Kotak Mr. Shivaji Dam Mr. C.Jayaram ( Executive Director ) Mr. Dipak Gupta ( Executive Director ) Ms. Bina Chandrana ( Secretary and Sr. Vice President )

The Kotak Groups History

The Kotak Mahindra Group was born in 1985 as Kotak Capital Management Finance Limited.

This company was promoted by Uday Kotak, Sidney A. 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.

986 Kotak Mahindra Finance Limited starts the activity of Bill Discounting

987 Kotak Mahindra Finance Limited enters the Lease and Hire Purchase market

990 he Auto Finance division is started

991 The Investment Banking Division is started. Takes over FICOM, one of India's large


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financial retail marketing networks

992 Enters the Funds Syndication sector

1995

Brokerage and Distribution businesses incorporated into a separate company - Kota

rities. Investment Banking division incorporated into a separate company - Kota

indra Capital Companny.

996

The Auto Finance Business is hived off into a separate company - Kotak Mahindr

Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindr

takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing For

vehicles. The launch of Matrix Information Services Limited marks the Group's entr

into information distribution.

998

Enters the mutual fund market with the launch of Kotak Mahindra Asset Manageme

pany.

000

Kotak Mahindra ties up with Old Mutual plc. for the Life Insurance busines

k Securities launches its on-line broking site (now www.kotaksecurities.com

mencement of private equity activity through setting up of Kotak Mahindra Ventur

ital Fund.

001

Matrix sold to Friday Corporation.Launches Insurance Services.

003

Kotak Mahindra Finance Ltd. converts to a commercial bank - the first Indian compan

o so.


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004 Launches India Growth Fund, a private equity fund.

005

Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prim

erly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindr

ches a real estate fund

006

Bought the 25% stake held by Goldman Sachs in Kotak Mahindra Capital Company an

k Securities.

The journey so far

In October 2005, Kotak Group acquired the 40% stake in Kotak Prime held by Ford Credit

International (FCI) and FCI acquired the stake in Ford Credit Kotak Mahindra (FCKM) held by

Kotak Group. In May 2006, Kotak Group bought 25% stake held by Goldman Sachs in Kotak

Capital and Kotak Securities.


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Awards

2007

Most Popular Investor Relation Website for the Asia/Pacific Region conducted by IRGlobal Rankings

Emerged winner in 16 categories in the Euro money Private Banking Poll 2007,including the Best local Private Bank

2006

IT Team of the Year award at the annual Banking Technology Awards 2006 Runners up in the Best Payments Initiative category at the annual Banking

Technology Awards 2006

Kotak Securities was ranked The Most Customer Responsive Company for 2006(Category - Financial Services) by Avaya Global connect

Awarded the Best Domestic Investment Bank and the Best Equity House in The AssetTriple A Country Awards

Awarded Voice of Customers 2006 Best Auto Finance Company in India by Frost &Sullivan

Winner in 33 categories in the Asia money Private Banking Poll 2006 including theBest Private Bank award in Southern Asia


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Ranked no. 1 in six categories in the Annual Euro money Private Banking Survey Pollfor 2006 for India

Best Investment Bank in India by Finance Asia

Ranked # 1 in the league table for Book runner/ Lead Manager in public equityofferings in terms of the value of transactions completed during fiscal 2006

according to Prime Database

Best Broker in India by Finance Asia Topped the Asia money 2006 Brokers Poll as the Best Local Broker Adjudged the best Mutual Fund House in the NDTV Business Leadership Award 2006 Best Bond Fund Group over Three Years by Lipper Fund Awards India Ranked ICRA-MFR1 and was the recipient of the Silver Award by ICRA for the 'Kotak

Bond Regular Plan'

2005

Ranked as the top mergers & acquisitions advisor in India in terms of the value ofmergers & acquisitions deals announced from January to December 2005, according

to Bloomberg

Topped the India Advisory Partners In data League table in terms of the value ofdeals announced for the calendar year 2005

Ranked # 1 in the league table for Book runner/ Lead Manager in public equityofferings in terms of the value of transactions completed during fiscal 2005


Best Broker in India by Finance Asia Best Equity House in India by Euro money


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2004

Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity

offerings in terms of the value of transactions completed during fiscal 2004


Best Investment Bank in India by Global Finance India's Best Equity House in India by Finance Asia Best Equity House in India by Euro money Best Equity House in India by Asia money Best India Equity House by IFR

2003

Best Investment Bank in India by Finance Asia Ranked # 1 in the league table for Book runner/ Lead Manager in public equity

offerings in terms of the value of transactions completed during fiscal 2003,


Best Equity House in India by Euro money Best Equity House in India by Asia mo


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ABOUT KOTAK MAHINDRA BANK LTD.

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.

Mr. Shankar Acharya

Chairman

Kotak Mahindra Bank Ltd.


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Mr. Uday Kotak

Executive vice chairman and Managing Director


Mr. Dipak Gupta

Executive Director



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Companies Vision Statement


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Products and Services

1.

Banking and Services

Banking Accounts

Demat

Deposits

NRI Services

Convenience Banking

2. Investments and Insurance1.1Life Insurance1.2Mutual Funds1.3Share Trading1.4Structured Products1.5Gold1.6Estate Planning

3. Loans and Borrowings1.1Car Finance1.2Home Loans1.3Loans Against Property1.4Personal Loans

4. Corporate and Institutional1.1Corporate Finance1.2Investment Banking1.3Institutional Equities


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1.4TreasuryBanking Accounts

Savings Accounts

Kotak Mahindra Bank Ltd. has a number of variants of Savings Accounts customized to suit

customers needs that matches their requirements.

Types of Saving Accounts:

Ace Savings Account Pro Savings Account Edge Savings Account Nova Savings Account ( Not available at Raipur) Classic Savings Account ( Not available at Raipur) Easy Savings Account ( Not available at Raipur) Corporate Savings Account ( Not available at Raipur)

Current Accounts

Kotak Mahindra Bank offers the customers unparalleled advantages with its three

Current Account offerings. Whether the customers have small or mid size business or they

are an enterprise spread across multiple locations in the country, the customers would find

a current account thats just designed for them.

Types of Current Accounts:

Ace Current Account Pro Current Account Edge Current Account

Features and Benefits of Savings Accounts and Current Accounts


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Attractive returns: Kotak Ace Savings Account combines liquidity of a savingsaccount with the attractive returns of a term deposit through the unique 2-way

sweep facility.

Free Home Banking: For free cash/demand draft delivery, customers just have todial to the bank executive or phone banking service and customer can enjoy a

time saving banking experience from the comfort of their home.

Free At par Cheques: Kotak mahindra banks At-Par cheques are treated as localclearing cheques across select locations in the country. And Kotak mahindra

Bank provides At-Par cheques absolutely free of cost.

Free Demand Drafts: Customer can avail Demand Drafts free of cost payable atany locations in India, just by calling our phone banking service.

Free Cheque Collection: outstations cheques drawn on any of Kotak MahindraBank would be collected free of charge for customers. Only a nominal charge is

levied on non-branch locations.

Free At-Home Services: This service enables customers to make their utility billspayments like electricity, telephone and mobile phones bills also get document

delivery and pick up from the bank.

Family Savings Accounts: The customers who are taking ACE and PRO savingsaccounts they are facilitated with extra Savings accounts for their family

members.

Free Trading Account: Kotak Mahindra Bank ltd. provides free trading accountwith kotak securities which gives the customers access to online trading through

kotakstreet.com.


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Free Demat Account: Kotak Mahindra Bank ltd provides free demat account totheir customers along with which their annual charges will be waived.

Free Investment Account: Through Kotak Mahindra Bank Savings account

customer will get free investment account which provides them a consolidated

view of all their investments.

Global Debit Card: Kotak Mahindra bank provides the global debit card to theircustomers through which they can access their account free of cost at any VISA

ATM in India and abroad. They can also use their debit card at all VISA affiliated

merchants establishments worldwide.

Phone Banking: A customer can dial 24 hour Toll free number 1800 226022(restof India) from anywhere and customer care officer will help them instantly with

their banking requirements.

Net Banking: Kotak Mahindra Bank provides the facility of Net banking, thecustomers just have to log on to www.kotak.com to access net6 net banking

facility.

Personal Investment Advisor: Kotak Mahindra Bank Provides a facility ofpersonal investment advisor which alerts the customers regarding their

investments and pulls them in the right direction for their investments.


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INTRODUCTION

Every research contains some purpose to find out something. Either to know a thing,

which is unknown or go do, a deep study about a subject to collect more information. My

purpose of project was that I wanted to find :

Whether people are interested to invest? What are the areas where they like to invest? How do they do this?

Every person has its own perception regarding investment. Some want more risk and

some fear to take risk. We wanted to see whether people are aware of different options for

investment? What are major areas of investment, which they make? In this project we

studied what are the major requirements which a customer demands from their

investment. There are various factors to be kept in mind while deciding the portfolio for a

customer. For ex age, income, market conditions etc. All these factors need to be analyzed

and accordingly their portfolio has been designed.

There are various customers who have lot of idle money but either they do not invest or

are unaware of investment opportunities or suffer loss due to lack of proper knowledge and

guidance. As such our aim was to study their requirements and design the portfolio so that

customers can take best advantage of their invested amount.


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OBJECTIVES OF THE RESEARCH

Every research contains some purpose to find out something. Either to know a thing,

which is unknown or go do, a deep study about a subject to collect more information. My

purpose of project was that I wanted to find :

Whether people are interested to invest? What are the areas where they like to invest? How do they do this?

TITLE OF THE PROJECT: Kotak Smart Advantage Plans for Wealth Maximization of

Customers And Result There On This project is based on survey and according to that

requirement

OBJECTIVES OF STUDY:

To study the whole banking aspects of kotak Mahindra Bank To find out the knowledge of customers towards various banking plans. To study the products provided by kotak mahindra bank to their customers. To study the risk minimization strategy To study the various reasons for the suitabi city of a particular puoduct to a

customer.


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AREA OF RESEARCH:

I have taken RAIPUR city as a whole as my area of research within in which I havefilled my questionnaires from the peoples of Raipur city including the customers of

Kotak Mahindra Bank ltd.


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EXECUTIVE SUMMARY

Monopoly of LIC has been broken to make Indian Insurance to change its face and pace to

tap the market and to make the new challenges in it. Insurance in India is not about India

only; it is an open sector for the private players. The name which you would see in Indian

insurance market is something like: - BAJAJ (Indian company) + Allianz (foreign player), TATA

(Indian company) + Aig (foreign player) and so many like them. Companies now are tapping

a lot of ways to capture the market and hence adopting different ways to hold the large

portion of the market. My project was to understand the different marketing strategies

adopted by the companies to increase their market share and along with it meeting their

own targets to achieve the position of no.1 in respective field or segment of the market. My

summer training learning helped me a lot to complete my project in order to learn a lot of

things of the corporate. As a project trainee the first task given to me was to understand the

basic behaviour of the consumer in order to manipulate the market according to the our

target competition.


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LITERATURE REVIEW

ABOUT INSURANCE

Insurance may be defines as social device to protect the economic value of the Life

and other assets. Under the plan of Insurance a group of people are brought together and

their share of money is pooled to manage the loss suffered by any of them.

in its basic form is defined as A contract between two parties whereby one party called

Insurance insurer undertakes in exchange for a fixed sum called premiums, to pay the other

party called insured a fixed amount of money on the happening of a certain event."

In simple terms it is a contract between the person who buys Insurance and an

Insurance company who sold the Policy. By entering into contract the Insurance Company

agrees to pay the Policy holder or his family members a predetermined sum of money in

case of any unfortunate event for a predetermined fixed sum payable which is in normal

term called Insurance Premiums.

Insurance is basically a protection against a financial loss which can arise on the

happening of an unexpected event. Insurance companies collect premiums to provide for

this protection. By paying a very small sum of money a person can safeguard himself and his

family financially from an unfortunate event. For Example if a person buys a Life Insurance

Policy by paying a premium to the Insurance company , the family members of insured

person receive a fixed compensation in case of any unfortunate event like death.

There are different kinds of Insurance Products available such as Life Insurance, Vehicle

Insurance, Home Insurance, Travel Insurance, Health or Mediclaim Insurance etc. Insurance,

in law and economics, is a form of risk management primarily used to hedge against the risk


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of potential financial loss. Insurance is defined as the equitable transfer of the risk of a

potential loss, from one entity to another, in exchange for a premium and duty of care.

Characteristics of Insurance

1. Sharing of Risk

2. Cooperative device

4. Payment on event of happening of any special event

5. The amount of payment depends on the size and type of loss.

6. The success of Insurance business depends on the law of large number of

people insured against similar risk.

7. Insurance is a business which spreads the loss and the risk of few people in the

large Number of people.

8. The insurance is a plan in which insured transfer his risk to insurer.

9. Insurance is a legal contract

ORIGIN OF INSURANCE

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of

the caravan trade by giving loans that had to be later repaid with interest when the goods

arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. That,

perhaps, was how insurance made its beginning.

Life insurance had its origins in ancient Rome, where citizens formed burial clubs that

would meet the funeral expenses of its members as well as help survivors by making some

payments.


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As European civilization progressed, its social institutions and welfare practices also got

more and more refined. With the discovery of new lands, sea routes and the consequent

growth in trade, medieval guilds took it upon themselves to protect their member traders

from loss on account of fire, shipwrecks and the like.

Origin in India

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of

Life Insurance Corporation of India's corporate headquarters, is Derived from the Rig Veda.

The term suggests that a form of "community insurance" was prevalent around 1000 BC and

practiced by the Aryans.

Burial societies of the kind found in ancient Rome were formed in the Buddhist period to

help families build houses, protect widows and children. Bombay Mutual Assurance Society,

the first Indian life assurance society, was formed in 1870. Other companies like Oriental,

Bharat and Empire of India were also set up in the 1870-90s.

It was during the swadeshi movement in the early 20th century that insurance witnessed

a big boom in India with several more companies being set up.

As these companies grew, the government began to exercise control on them. The

Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of

1938 that looked into investments, expenditure and management of these companies'

funds.

By the mid-1950s, there were around 170 insurance companies and 80 provident fund

societies in the country's life insurance scene. However, in the absence of regulatory

systems, scams and irregularities were almost a way of life at most of these companies.


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As a result, the government decided nationalizes the life assurance business in India. The

Life Insurance Corporation of India was set up in 1956 to take over around 250 life

companies.

For years thereafter, insurance remained a monopoly of the public sector. It was only

after seven years of deliberation and debate - after the RN Malhotra Committee report of

1994 became the first serious document calling for the re-opening up of the insurance

sector to private players -- that the sector was finally opened up to private players in 2001.

The evolution of Insurance in India can be summarized as


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About Life Insurance

Life Insurance is insurance for you and your family's peace of mind. Life insurance is a policy

that people buy from a life insurance company, which can be the basis of protection and

financial stability after one's death. Its function is to help beneficiaries financially after

the owner of the policy dies.

It can also be a form of savings in the long run if you purchase a plan, which offers the

option of contributing regularly. Additionally, a little known function of life insurance is that

it can be tied in with a person's pension plan. A person can make contributions to a pension

that is funded by a life insurance company. These are considered private pension

arrangements. In addition, you should also make a list of what you feel needs to be

protected in your family's way of life. With a life insurance policy in place, you can:

provide security for your family protect your home mortgage take care of your estate planning needs look at other retirement savings/income vehicles

Life Insurance in India

Life Insurance in India existed from long time. The modern concept of Insurance was

brought by Bruisers in India, and Oriental Insurance Company was the first Insurance

Company who did Insurance for the Indian in 1818 and was established in Calcutta

nowadays Kolkata. Then due to no interference of government in it, private market players

ruled the market as they want to, that is why government intervened in between to protect

the interest of the mass and to safeguard the money involved in it. Government took the


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initiative and banned the private players to involve in Insurance market. All private

companies were took over by Government and Insurance market was turned to Public

sector and Life Insurance Corporation of India was formed in 1956 to make the Insurance

reachable at remote areas and that even by low premiums or better said as affordable

premium so as to secure their life. From the beginning of Insurance in India till now a lot of

changes have been made but the most significant change was in 1999, when IRDA was

formed. IRDA means Insurance Regulatory and Development Authority. This was formed to

rethink upon opening the insurance sector for the Private players again but along with that

to have a check upon those private players an IRDA has to act as a governing body to

safeguard the interest of the public hose money is involved in it From that time i.e. from the

year 2001 insurance sector was opened for the private players too. Since then Insurance

Sector is on the boom and business is flourishing and a lot of private players are coming into

business. Here the private players doesnt indicate to Indian Private Companies but also

foreign players are also involved in it, but to manage the money flow in and outside the

country IRDA takes care of the contribution of the money by foreign partners of private

insurance companies. To control that IRDA has set a limit of FDI i.e. 26%.

Name of Life Insurance Company

1. Kotak Mahindra Old Mutual Life Insurance Limited2. HDFC Standard Life Insurance Company Ltd.3. Max New York Life Insurance Co. Ltd.4. ICICI Prudential Life Insurance Company Ltd.\5. Birla Sun Life Insurance Company Ltd.6. Tata AIG Life Insurance Company Ltd.
http://www.hdfcinsurance.com/http://www.maxnewyorklife.com/http://www.iciciprulife.com/http://www.birlasunlife.com/http://www.tata-aig-life.com/http://www.tata-aig-life.com/http://www.birlasunlife.com/http://www.iciciprulife.com/http://www.maxnewyorklife.com/http://www.hdfcinsurance.com/


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7. SBI Life Insurance Company Limited .8. ING Vysya Life Insurance Company Private Limited9.

Bajaj Allianz Life Insurance Company Limited

10. Future Generally India Life Insurance Company Limited11. IDBI Fortis Life Insurance Company Ltd.AMP Sanmar Life Insurance Company Limited.

12. Sahara India Insurance Company Ltd.13. Aviva Life Insurance Co. India Pvt. Ltd.14. Shriram Life Insurance Company Ltd.15. Aegon Religare Life Insurance Company Ltd.16. Reliance Life Insurance17. Star Union Dai-chi life Insurance18. Oriental Life Insurance
http://www.sbilife.co.in/http://www.ingvysyalife.com/http://www.allianzbajaj.co.in/http://www.allianzbajaj.co.in/http://www.ingvysyalife.com/http://www.sbilife.co.in/


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MAJOR PLAYER OF INSURANCE IN INDIA

The Life Insurance Corporation of India (LIC) is the largest life

insurancecompany inIndiaand also the country's largest investor.

It is fully owned by the Government of India. It also funds close to 24.6% of the Indian

Government's expenses. It was founded in 1956.Headquartered in Mumbai, which is

considered the financial capital of India, the Life Insurance Corporation of India currently

has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048

branches located in different cities and towns of India along with satellite Offices attached

to about some 50 Branches, and has a network of around one million and 200 thousand

agents for soliciting life insurance business from the public. Over its existence of around 50

years, Life Insurance Corporation of India, which commanded a monopolyof soliciting and

selling life insurance in India, created huge surpluses, and contributed around 7 % of India's

GDPin 2006.

The Corporation, which started its business with around 300 offices, 5.6 million policies

and a

corpus of INR 459 million, has grown to 25000 servicing around 180 million policies and

a corpus of over INR 3.4 trillion.

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj

Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz AG. Both enjoy a

reputation of expertise, stability and strength.

Bajaj Allianz General Insurance received the Insurance Regulatory and Development

Authority(IRDA) certificate of Registration on 2nd May, 2001 to conduct General Insurance

business (including Health Insurance business) inIndia. The Company has an authorized and
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paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is

held by Allianz.

Tata AIG Life Insurance Company Limited (Tata AIG Life) is a joint

venture company, formed by the Tata Group and American

International Group, Inc. (AIG). Tata AIG Life combines the Tata Groups

pre-eminent leadership position in India and AIGs global presence as one of the worlds

leading international insurance and financial services organization. The Tata Group holds 74

per cent stake in the insurance with AIG holding the balance 26 per cent. Tata AIG Life

Insurance Company was licensed by Insurance Regulatory and Development Authority to

operate in India on February 12, 2001 and started on April 1, 2001.

Max New York Life Insurance Company Ltd. is a joint

venture between New York Life; a Fortune 100 company and

Max India Limited; one of India's leading multi-business corporations. The company has

positioned itself on the quality platform. In line with its vision to be the Most Admired Life

Insurance Company in India, it has developed a strong corporate governance model based

on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The

strategy is to establish itself as a Trusted Life Insurance Specialist through a quality

approach to business. Incorporated in 2000, Max New York Life started commercial

operation in 2001. In line with its values of financial responsibility, Max New York Life has

adopted prudent financial practices to ensure safety of policyholder's funds. The Company's

paid up is Rs. 1,782 crore.
http://c/Users/wiki/Tata_Grouphttp://c/Users/wiki/Tata_Grouphttp://c/Users/wiki/American_International_Grouphttp://c/Users/wiki/American_International_Grouphttp://c/Users/wiki/American_International_Grouphttp://c/Users/wiki/American_International_Grouphttp://c/Users/wiki/American_International_Grouphttp://c/Users/wiki/Tata_Group


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ICICI Prudential is a joint venture between ICICI

Bank and Prudential plc engaged in the business of life

insurance in India. ICICI Prudential is the largest private insurance company and second

largest insurance in India after LIC. ICICI Prudential Life Insurance Company is a joint venture

between ICICI Bank, a premier financial powerhouse, and prudential plc, a leading

international

financial services group headquartered in the United Kingdom. ICICI Prudential was

amongst the first private sector insurance companies to begin operations in December 2000

after receiving approval from Insurance Regulatory Development Authority (IRDA).ICICI

Prudential Life's capital stands at Rs. 37.72 billion (as on March, 2008) with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. For the year ended March 31, 2008,

the company garnered Retail New Business Weighted premium of Rs. 6,684 crores,

registering a growth of 68% over the last year and has underwritten nearly 3 million retail

policies during the period. The company has assets held over Rs. 30,000 crore as on April 30,

2008.ICICI Prudential Life is also the only private life insurer in India to receive a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the

highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to

customers at the time of maturity or claims.For the past seven years, ICICI Prudential Life

has retained its leadership position in the life insurance industry with a wide range of

flexible products that meet the needs of the Indian customer at every step in life.


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INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Insurance Regulatory and Development Authority (IRDA)[1] is a national agency of

theGovernment of India, based inHyderabad. It was formed by an act of Indian Parliament

known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging

requirements. Mission of IRDA as stated in the act is "to protect the interests of the

policyholders, to regulate, promote and ensure orderly growth of the insurance industry

and for matters connected therewith or incidental thereto."

The law of India has following expectations from IRDA

1. To protect the interest of and secure fair treatment to policyholders;

2. To bring about speedy and orderly growth of the insurance industry (including annuity

and superannuation payments), for the benefit of the common man, and to provide long

term funds for accelerating growth of the economy;

3. To set, promote, monitor and enforce high standards of integrity, financial soundness,

fair dealing and competence of those it regulates;

4. To ensure that insurance customers receive precise, clear and correct information

about products and services and make them aware of their responsibilities and duties in this

regard;

5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other

malpractices and put in place effective grievance redressal machinery;

6. To promote fairness, transparency and orderly conduct in financial markets dealing

with insurance and build a reliable management information system to enforce high

standards of financial soundness amongst market players;

7. To take action where such standards are inadequate or ineffectively enforced;
http://www.irda.gov.in/Defaulthome.aspx?page=H1http://www.irda.gov.in/Defaulthome.aspx?page=H1http://www.irda.gov.in/Defaulthome.aspx?page=H1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Hyderabad_(India)http://en.wikipedia.org/wiki/Government_of_Indiahttp://www.irda.gov.in/Defaulthome.aspx?page=H1


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8. To bring about optimum amount of self-regulation in day to day working of the

industry consistent with the requirements of prudential regulation.

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 laysdown the duties,powers and functions of IRDA

(1) Subject to the provisions of this Act and any other law for the time being in force, the

Authority shall have the duty to regulate, promote and ensure orderly growth of the

insurance business and re-insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the

powers and functions of the Authority shall include,

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend

or cancel such registration;

(b) protection of the interests of the policy holders in matters concerning assigning of

policy, nomination by policy holders, insurable interest, settlement of insurance claim,

surrender value of policy and other terms and conditions of contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the insurance

and re-insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) calling for information from, undertaking inspection of, conducting enquiries and

investigations including audit of the insurers, intermediaries, insurance intermediaries and

other organizations connected with the insurance business;


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(i) control and regulation of the rates, advantages, terms and conditions that may be

offered by insurers in respect of general insurance business not so

Controlled and regulated by the Tariff Advisory Committee under section 64U of the

Insurance Act, 1938 (4 of 1938);

(j) Specifying the form and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insurance intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Regulating maintenance of margin of solvency;

(m) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

(n) Supervising the functioning of the Tariff Advisory Committee;

(o) Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f);

(p) Specifying the percentage of life insurance business and general insurance business

to be undertaken by the insurer in the rural or social sector; and

(q) Exercising such other powers as may be prescribed


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FUNCTION OF THE INSURANCE

PRIMARY FUNCTION:-

1. Provide protection: - As risks controlling is not in the hands of anyone completely that

is why Insurance Company provides the risk protection.

2. Collective bearing of loss: - Insurance Company would have to accept the loss and

give respective claims as for the sake of contract that has been done between the company

and the insured.

3. Assessment of Risk: - There should be the proper assessment of the risk so as to

charge the correct and legible premium to insure the subject matter of insurance.

4. Provide the certainty: - As the losses appear from the uncertainty so Insurance

Company would have to provide the certainty of absorbing the loss so as to protect the

insured under the risk in which he has been insured.

SECONDARY FUNCTION:-

1. Prevent Loss: - Insurance cautious businessman and individuals to adopt suitable

device to prevent unfortunate consequences of risk by observing safety instructions.

2. Small capital to large risk: - Small capital is demanded to cover the risk of the large

capital.


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ABOUT KOTAK MAHINDRA OLD MUTUAL

LIFE INSURANCE

Kotak Group and Mahindra Group had their partnership 1985 between Uday Kotak and

Mr. Mahindra.

Kotak Mahindra is in business since 1985, and insurance part of their business came into

existence in the year 2001.

Evolution of Insurance business in

Kotak Mahindra business is like this:-


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As stated above Kotak Mahindra Life Insurance has Joint venture with Old Mutual plc.

Old Mutual Plc is the 12th largest Insurance Company in the world. It has its base of over 4

million life assurance policyholders. It has one of the best Payouts among insurers in the

world. It has one of the best Solvency Ratios among insurers in the world. A FTSE 100

financial services group and ranks as a Fortune Global 500 company. The Old Mutual group

manages in excess of 239 billion pounds in funds (Dec06). The company is 160 years old and

has prominent presence in the United States and the United Kingdom.

Fact of Kotak Mahindra Old Mutual Life Insurance:-

Old Mutual plc. Is a world class international financial services company, with theoperations in life insurance, asset management and banking? It is one of the big

players in the U.S., U.K. and the African Continent.

Over 150 Years of experience in Life Insurance. One of the best returns amongst insurers worldwide. Base of over 3.8 million Life assurance policyholders. A FTSE 100 Financial services group, and ranks as Fortune Global 500 Company. 3rd largest insurer listed on London Stock Exchang The Old Mutual group manages in excess of $235 billion in funds i.e., a total asset base

of more than Rs. 11 Lakh core.

South Africas largest life insurance, banking & mutual funds company AUM : US $ 306 billion


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Kotak Groups Companies:-

KOTAK MAHINDRA BANK LTD KOTAK MAHINDRA CAPITAL COMPANY LTD KOTAK'S INTERNATIONAL BUSINESS KOTAK MAHINDRA PRIME LTD KOTAK SECURITIES LTD KOTAK MAHINDRA ASSET MANAGEMENT COMPANY If we look at the status of Kotak Life Insurances market share in comparison of other

private company in comparison of premium earned:-


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we talk the growth of Insurance industrys private players in recent years, the data will

reflect:-


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TOP 10 LIFE INSURANCE COMPANIES IN INDIA

1. LIC (Life Insurance Corporation of India) still remains the largest life insurance companyaccounting for 64% market share. Its share, however, has dropped from 74% a year

before, mainly owing to entry of private players with innovative products and better

sales force.

2. ICICI Prudential Life Insurance Co Ltd is the biggest private life insurance company inIndia. It experienced growth of 58% in new business premium, accounting for increase in

market share to 8.93% in 2007-08 from 6.97% in 2006-07.

3. Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market sharewent up to 6.98% in 2007-08 form 5.66% in 2006-07. The company ranked second (after

LIC) in number of policies sold in 2007-08, with total market share of 7.36%.


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4. SBI Life Insurance Co Ltd in terms of new number of policies sold, the company ranked6th in 2007-08. New premium collection for the company was Rs 4,792.66 crore in 2007-

08, an increase of 87% over last year.

5. Reliance Life Insurance Co Ltd Total collected was Rs 2,792.76 crore and its marketshare went up to 2.96% from 1.23% a year back. It now ranks 5th in new business

premium and 4th in number of new policies sold in 2007-08.

6. HDFC Standard Life Insurance Co Ltd with an income of Rs 2,680 crore in FY2007-08,registering a year-on-year growth of 64%. Its market share is 2.88% and it ranks 6 th

among the insurance companies and 5th amongst the private players.

7. Birla Sun Life Insurance Co Ltd market share of the company increased from 1.22% to2.11% in 2007-08. The company moved to the 7th position in 2007-08 from 8the a year

before, pushing down Max New York Life insurance company.

8. Max New York Life Insurance Co Ltd has reported growth of 73% in 2007-08. Total newbusiness generated was Rs 641.83 crore as against Rs 387.51 crore. The company was

pushed down to the 8th position from 7th in 2007-08.

9. Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the companyreported growth of 80%, moving from the 11th position to 9th. It captured a market

share of 1.19% in 2007-08. Last year the company doubled its branch network to 150

from 74.

10.Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2007-08 from 9thlast year. It has presence in more than 3,000 locations across India via 221 branches and

close to 40 bancassurance partnerships. Aviva Life Insurance plans to increase its capital

base by Rs 344 crore. With the fresh investment, total paid-up capital of the insurer

would go up to Rs 1,348.8 crore


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RANKING OF INSURANCE RETURN ON INVEST


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KOTAK SMART ADVANTAGE PLANMake every rupee work for your happiness

In this policy, the investment risk in the investment portfolio is borne by the

policyholder.

Why should we invest in Kotak smart advantage?

Every step in our life brings with it newel earnings. We are determined to make the best

of it, so that we can look forward to a great future. How we shape our tomorrow depends

greatly on how we build on our today.

Kotak Life Insurance introduces Kotak Smart Advantage, a great combination of

investment with insurance, to put our savings to work today. It is a market linked plan with

100% premium allocations helping us to accumulate wealth systematically, over the long-

term. Kotak Smart Advantage is a great combination of investment with insurance designed

to enable you to make the best use of your hard-earned money that puts you right ahead.

Key Highlights

Guaranteed returns ofup to 275% of your first year premium at maturity. Assured bonus additions at regular intervals during the policy term to enhance your

fund value.

100% allocation of your premiums from second year onwards to maximize yourearning potential.

A unique3 fund offering you the maximum Opportunity for growth. Option to maximize protection your loved ones. Tex Benefits to avail under 80 C and section 10 (10D) of the Income Tax Act, 1961


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How does this plan work?Kotak Smart Advantage optimizes the return on your premiums paid through a smart

mix of assured additions and 100%1 premium allocation. Your first years premium

contributes towards guaranteeing you an Assured Addition Advantage that boosts your fund

value at regular intervals throughout the term of the policy. The Longer your premium

paying term, the higher will be the value of the advantage.

The Assured Addition Advantage is a powerful combination of two benefits:

A. Fixed Advantage

The Fixed Advantage benefit is an assured value guaranteed at the end of your premium

payment term. This benefit is calculated as a percentage of your first year premium

depending on the premium payment term chosen, provided your policy is in force and all

premiums are fully paid up to date.

B. Dynamic Advantage

The Dynamic Advantage benefit is an assured bonus addition credited to your fund value

at the end of every 10th, 15th, 20th, 25th and 30th policy year. This benefit will be

calculated as a percentage of the average value of funds in the three years preceding the

benefit allocation, provided your policy is in force and all premiums are fully paid up to

date.


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The Assured Addition Advantage lets you enjoy the benefits of a fixed assurance and a

dynamic benefit directly linked to your fund value, to help you tread comfortably and swiftly

towards your goals.

Further, the plan makes your money work smarter for you through 100%1 premium

allocation in each policy year from second yeaOnwards, in the funds of your choice. On

maturity of your policy, you will receive the Fund Value and the Fixed Advantage benefit,

provided your premiums are always fully paid up to date. The Dynamic Advantage benefit

would have already been credited in the Fund Value at the specified intervals to accumulate

more for you at the end.

What can you gain by investing in Kotak Smart Advantage?

Smarter Avenues for Growth

Smart investing is based on the fundamental idea of regular savings and the power of

compounding, which is a great way to multiply your money. It makes small savings

transform into jackpots if planned with a long-term vision and right investment fund

options. Kotak Smart Advantage, with its power-packed and well-defined fund options, gives


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you unmatched benefits to maximise your earnings potential. Each of these funds is

carefully crafted to suit your individual long-term needs.

You can distribute your investments across one or more funds based on your needs and

goals, keeping in mind your time horizon and risk appetite.

You also have the convenience of switching your monies between funds to balance your

needs and risk appetite at different stages of life.

Smarter Financial Protection for your loved ones

Kotak Smart Advantage allows you to shoulder all your responsibilities to the fullest. In

the unfortunate event of loss of life, your beneficiary will receive a life cover3 benefit equal

to the higher of:

Basic Sum Assured; OR Fund Value plus the Fixed Advantage benefitYou have the flexibility to choose any multiple of your first year premium as the Basic

Sum Assured according to your lifestage needs, subject to underwriting conditions.

Smarter Savings to avail Tax Benefits


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You can avail of tax benefits under Section 80C and Section 10 (10D) of Income Tax Act,

1961. Tax benefits are subject to change in the tax laws. You are advised to consult your Tax

Advisor

Eligibility A Ready Reckoner


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Plan Snapshot

25-year-old Dinesh realizes the benefits of astute financial planning and wants to save

for the long term in a systematic way. He is looking for a plan that gives him the comfort

that his savings are being put to work from day one and optimizes his growth potential in

the long run. Dinesh has found the solution to his needs in Kotak Smart Advantage. Given

below is an illustration of the benefits payable to him for an annual premium of Rs. 40,000

for a 30 year term with a guaranteed basic sum assured of Rs. 600,000:


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Optimal Financial Planning In 5 Easy Steps

Now that you are aware of the Kotak Smart Advantage details, heres how you can

structure your financial planning in 5 easy steps:


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CHAPTER 2

RESEARCH METHODOLOGY


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RESEARCH METHODOLOGY

Research methodology is the way to systematically solve the research problem.

Research methodology just does not deal with research methods but also consider the logic

behind the methods. It may be understood as the science of studying how research is done

scientifically and systematically. In it we study the various steps that are generally adopted

by the researcher in study of his research problem along with the logic behind them. It is

necessary for the research to know the research method and technique. He must also

clearly understand the procedure would apply to problem given to him. All this means that

it is necessary for the researcher to design the methodology from problem to problem.

So, the research methodologies adopted by the researcher in this project are as

follows:

2.1 Review of related literature

Review of related literature means researcher should undertake extensive literature

summary connected with the problem for this purpose, the abstracting and indexing

journals and published and unpublished bibliographies are the first place to go to. Academic

journals, conference, proceedings, government reports, books etc. must be tapped

depending on the nature of the problem. In this process, it should be remembered that one

source would lead to another. The earlier studies if any, which are similar to the study in

hand, should be carefully studied. A good library will be a great help to the researcher at this

stage.

2.2 Statement of problem


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Identifying, analyzing and understanding the consumer behaviour of Kotak Mahind ra

Bank Ltd. Products exclusively in Raipur (C.G)

2.3 Purpose of study

To study about the whole banking area of Kotak Mahindra Bank Ltd. and to take the

feedback of their existing customers and non existing customers through which the banks

strengths and weakness will be find out.

TITLE OF THE PROJECT: Kotak Smart Advantage Plans for Wealth Maximization of

Customers And Result There On This project is based on survey and according to that

requirement

2.4 OBJECTIVES OF STUDY:

To study the whole banking aspects of kotak Mahindra Bank To find out the knowledge of customers towards various banking plans. To study the products provided by kotak mahindra bank to their customers. To study the risk minimization strategy To study the various reasons for the suitabi city of a particular puoduct to a

customer.

2.5 Universe

Sum total of all the units that confirms to some designated part of specification is called

universe.

While conducting the research work, researcher has selected Raipur city as the

universe. All the data which has been collected is completely done in the Raipur city.


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2.6 Sample

The sample is the representative unit of population. The researcher has taken the

customer as sample for this research. Since in this research the researcher has collected the

sample according to his convenience. So, the sample is convenient sample and the sample

size of the research is 100 for existing customers of Kotak Mahindra Bank Ltd. and 50 for

Non-existing customers.

2.7 Sample unit

Sample unit is the part of universe taken from the universe for testing hypothesis.

Researcher has taken the existing customers of kotak Mahindra Bank Ltd. and non-existing

customers also.

2.8 Sampling method

The researcher adopted the convenient sampling method. In this method the sampling

unit is chosen primarily on the basis of convenience to the investigators. In this type of

sampling the researcher selects the item for the sample deliberately; his choice concerning

the items remains supreme. In other words, under this sampling method the organizers of

the enquiry purposively choose the particular unit of the universe for constituting a sample

on the basis that the small mass that they select out of huge ones will be typical or

representative of the whole.

2.9 Source of data

The task of data collection begins after a research problem has defined. Researcher

should keep in mind two types of data i;e primary data and secondary data. The primary

data are that, which are collected fresh and for the first time and thus happens to be

original in character. The secondary data on other hand are those which have already been

collected by someone else and which have already been passed through the statistical


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process. So, while I conducting the research work, I have used the primary as well as the

secondary sources of data.

RESESARCH METHODOLOGY

Research Plan

Research Design : Descriptive Research

Data Source : Primary Data

Research Instrument : Questionnaire

Sample Plan

Sampling Design : convenient

Sample Size : 120

Sample Location : Raipur

Sample Element : Service/Professional - 40

Business class 40

Other 40

2.10 Data collection tools

These are the tools that the researcher had used for collecting the datas:

QUESTIONNAIRE

The term questionnaire refers to a self administered process where by the respondent

himself /herself reads the questions and records his/her answers without any assistance of

an interviewer. Although the instrument is essentially question asking and data gathering

tool. A questionnaire is more structured and standardized. The questionnaire consists of a


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number of questions printed or typed in a definite order on a form or a set of forms. This

method of data collection is quite popular in case of big enquiries.

2.11 Statistical technique

Percentage method technique of central tendency was used by researcher in the

analysis of the data in his research. Percentage refers to a special kind of ratio. Percentages

are used in making comparisons between two or more series of data. Percentages are used

to describe relationships. Percentages can also be used to compare the relative terms the

distribution of two or more series of data. Measures of central tendency tell us the point

about which items have a tendency to cluster. Such a measure is considered as the most

representative figure for the entire mass of data. Measure of central tendency is also known

as Statistical Average.

2.12 EXECUTION OF THE PROJECT

It is the very importance step is the research process. According to it findings depends

on how systematically the study has been cased out in time so that it can make some sense

when required. I have executed the project after prior discussion with the guide and

structure in following steps.

1. Preparation of questionnaire

2. Collection of list of some of the chick interview of the customer so that more

interview is possible and the variety of responses can be reposted to have a good data for

analysis.

3. Visiting the customers and asking them about the service they all availing from Kotak

Mahindra Bank Ltd. Try to find out the satisfaction level with the existing


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CHAPTER 3

DATA ANALYSIS

AND

INTERPRETATION


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ANALYSIS OF EXISTING CUSTOMERS FEEDBACK

.Gender of respondents.

Gender No. of respondents Percentage

Male 35 70%

Female 15 30%

Total 50 100%

Interpretation:

While conducting the research work it was found that 70% of the respondents were

Male where as 30% were Females.

gender

Male

Female


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1 . Source Of Family Income

S.NO PARTICULARS

NUMBERS

PERCANTAGE

1 BUSINESSMAN 15 30%

2 SELF EMPLOYED 10 20%

3 SALARIED 20 40%

4 PROFESSIONAL 5 10%

Interpretation:

While conducting the research work it was found that of the respondents have their

income between 1 lac to 2 lacs, of the respondents have their income between 2 lacs to 5

lacs,of the respondents have their income between 5 lacs to 10 lacs and of the respondents

have their income above 10 lacs.

2. Annual income of respondents.

30%

20%

40%

10%

BUSINESSMAN

SELF EMPLOYED

SALARIED

PROFESSIONAL


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Income Status No. of respondents Percentage

1 lacs 2 lacs 20 40%



Above 10 lacs 0 0%

Total 50 100%

Interpretation:

While conducting the research work it was found that of the respondents have their

income between 1 lac to 2 lacs, of the respondents have their income between 2 lacs to 5

lacs, of the respondents have their income between 5 lacs to 10 lacs and of the

respondents have their income above 10 lacs.

3 . ARE YOU AN EXISTING CUSTOMER OF KMBL.

Column2

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr


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PARTICULARS PERCANTAGE

YES 70%

NO 30%

Interpretation:

While conducting the research work it was found that 40% of the respondents were

from Business background, 56% of the respondents were from service background and 4%

of the respondents were students. From this we infer that the Kotak Mahindra Bank Ltd has

covered every area and sold goods to every segment.

70%

30%

YES

NO


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4. DO YOU HOLD ANY INSURANCE POLICY ?

Interpretation:

While conducting the research work it was found that 85%of the respondents have their

insurance policy and 15% respondents have no any insurance policy.

YES

NO

YES 85%

NO 15%


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5.IN WHICH POLICY YOU HAVE INVESTED ?

Interpretation:

While conducting the research work it was found that, 25% of the respondents want to

invest in kotak ksap,10% of the respondents want to invest in SBI life mahaanand,8% of the

respondents want to invest in BIRLA sun life saral jeevan,34% of the respondents want to

invest in LIC,9% of the respondents want to invest in HDFC std life youngstar+,14% of the

respondents want to invest in ICICI.

KATAK KSAP

SBI LIFE MAHAANAND

BIRLA SUN LIFE SARAL

JEEVAN

LIC

HDFC STD LIFE

YOUNGSTAR+

ICICI

KATAK KSAP 25%

SBI LIFE MAHAANAND 10%

BIRLA SUN LIFE SARAL JEEVAN 8%

LIC 34%

HDFC STD LIFE YOUNGSTAR+ 9%

ICICI 14%


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INVESTMENT

INSURANCE

TAX ADVANTAGE

ALL

6. WHAT IS YOUR NEED FOR THE PLAN ?

Interpretation:

While conducting the research work it was found that,14% of the respondents want to

invest in policy,49% of the respondents want to insurance,9% of the respondents want to

invest for tax advantage,28% of the respondents want to invest because they need all.

INVESTMENT 14%

INSURANCE 49%

TAX ADVANTAGE 9%

ALL 28%


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PARCENTAGE

KSAPSARAL JEEVAN

MAHAANAND

LIC

OTHERS

7. WHAT ARE THE BENEFITS YOU GET IN YOUR POLICY ?

Interpretation:

While conducting the

research work it was found

that, 45% of the respondents

invest in ksap because product give all the benefits,14% of the respondents invest in saral

jeevan, because this product gives tax advantage,assured return,risk cover.7% of the

respondents invest in mahaanand because in this product value locking system and no any

allocation charges,16% of the respondents invest in lic, because in this product guaranteed

return, risk cover,18% of the respondents invest in other policys because they want only for

investment.

PRODUCT NAME PARCENTAGE

KSAP 45%

SARAL JEEVAN 14%

MAHAANAND 7%

LIC 16%

OTHERS 18%


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8. WHAT IS THE RETURN YOU ARE GETTING IN YOUR POLICY ?

Interpretation:

While conducting the research work it was found that,49% of the respondents expected

return 20 and above in ksap ,7% of the respondents expected return 10-15% by saral jeevan

,9% of the respondents expected return 10-15% in mahaanand , 24% of the respondents

expected return 15-20% in lic, 11% of the respondents expected return 5-10% in others.

PARCENTAGE

KSAP

SARAL JEEVANMAHAANAND

LIC

OTHERS

PRODUCT NAME EXPECTED RETURN BY YOU

KSAP 49%

SARAL JEEVAN 7%

MAHAANAND 9%

LIC 24%

OTHERS 11%


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YES

NO

9. SATISFIED WITH YOUR EXISTING POLICY ?

Interpretation:

While conducting the research work it was found that, 92% of the respondents are

satisfied in their existing policy and 8% of the respondents are not satisfied with their policy.

YES 92%

NO 8%


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YES

NO

10. ARE YOU AWARE/SATISFIED OF THE FIXED ADVANTAGE BENEFITS OF KSAP ?

Interpretation:

While conducting the research work it was found that,96% of the respondents are aware

about their policy and 4% of the respondents are not aware about their policy.

YES 96%

NO 4%


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11. . ARE YOU AWARE/SATISFIED WITH THE FIXED DYNAMIC FLOOR FUND OF KSAP ?

Interpretation:

While conducting the research work it was found that,98% of the respondents are aware

about THE FIXED DYNAMIC FLOOR FUND OF KSAP and 2% of the respondents are not

aware about THE FIXED DYNAMIC FLOOR FUND OF KSAP.

YES

NO

YES 98%

NO 2%


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12. HOW MUCH YOU CAN SAVE OR INVEST PER MONTH ?

Interpretation:

While conducting the research work it was found that,10% of the respondents are invest

per month 3000-5000,16% the respondents are invest per month 5000-10000, 55% the

respondents are invest per month 10000-250000, 19% the respondents are invest per

month 250000 and above.

3000-5000

5000-10000

10000-25000

25000 AND ABOVE

3000-5000 10%

5000-10000 16%

10000-25000 55%

25000 AND ABOVE 19%


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13. WHAT IS YOUR RISK TAKING ABILITY ?

Interpretation:

While conducting the research work it was found that,13% of the respondents have high

risk taking ability,54% of the respondents have moderate risk taking ability,24% of the

respondents have low risk taking ability, 9% of the respondents havenil risk taking ability.

HIGH

MODRATE

LOW

NILL

HIGH 13%

MODERATE 54%

LOW 24%

NIL 9%


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14. WHAT IS YOUR TIME HORIZON ?

Interpretation:

While conducting the research work it was found that,56% of the respondents invest in

policy for below 3 yrs,21% of the respondents invest in policy for 3-5 yrs,9% of the

respondents invest in policy for 5-10 yrs,14% of the respondents invest in policy for 10 and

above yrs.

BELOW 3 YRS

3-5 YRS

5-10 YRS

10 AND ABOVE

BELOW 3 YRS 56%

3-5 YRS 21%

5-10 YRS 9%

10 AND ABOVE 14%


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15. HOW OLD ARE YOUR POLICIES ?

Interpretation:

While conducting the research work it was found that,60% of the respondents have policy in

1-3 yrs,24% of the respondents have policy in3-5 yrs, 9% of the respondents have policy in

5-10yrs,7% of the respondents have policy in 10 and above yrs.

1-3 YRS

3-5 YRS

5-10 YRS

10 AND ABOVE

1-3 YRS 60%

3-5 YRS 24%

5-10 YRS 9%

10 AND ABOVE 7%


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]SWOT Analysis of KOTAK

STRENGTH:

Energetic and efficient team. Research base advice. Better service than local competitors. Band of all financial products. Better infrastructure Professional approach.WEAKNESS:

Absence of facility of margin funding & funding against stock. New to Raipur city. People having less confidence in private playersOPPURTUNITY:

Catering to traditional market. Emphasis given on non-equity section can grow the business. As Raipur is going to be commercial kotak mahindra can found more growth

opportunity.

To be aggressive for doing activities to increase awareness.THREATS:

Challenge to break local and personal relationships. To compete against existing mindsets. Threat from local brokers who have economies of scale. High personnel iteration in service sector in Chhatisgarh .


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FINDINGS

1. Only 66% Respondents are prefer to invest in kotaks KSAP policy, where as

34% respondents prefer other investment plans.

2. Most of the respondents are not aware of investment policy.3. Time horizon, Risk bearing capacity, current market position, Liquidity are the

parameters for investors.

4. Risk and wealth management is pros and over diversification and extra charges iscons of Portfolio management.

5. Most of the respondents are satisfied with kotak smart advantage plan.


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LIMITATIONS

The marketing researcher has to face certain difficulties while carrying out the

research work. I know the limitations before hands which are controllable. Some

important limitations faced during the project are as follows:-

1. Sample Size:-

As there is only limited number of clients who availed pms in Raipur city, the

sample size is restricted to 100 only

2. Limitations of responses:-

The number of responses given by the respondents may not always 100%

correct. Also some respondents refuse to disclose the data.

3. Accuracy of data:-

Though extensive efforts are made to collect accurate data but due to human

touch there may be some inaccuracy in them as it is possible that the data given

by respondents may carry some inaccuracy.

4. Limitations of Bias:-

Sometimes it is possible that respondents may get biased, for avoidance of

that thing special influential & respectful behavior is exercised.


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SUGGESTIONS

The products which Kotak Mahindra Bank Ltd offers are quite expensive thus peopleare reluctant to start their banking with this private bank and thereby the bank

losses a chance to atleast give people a chance to now KMBL.

Spread awareness about the investment facilities and the products among thepeople of Raipur.

KMBL should increase the number of branches in Chhattishgarh as it becomes ahindrance in the path of their success , as willing individuals dont get associated due

to unavailability of branches.

People in Raipur are not aware of Kota Mahindra as a bank therefore they shouldalso focus on promotional activities.


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CONCLUSIONS

We did the analysis on the certain sample size of which maximum no. of respondents

were of the age of 30-40 year old which we interviewed & maximum were married. The

maximum amount saved by the people to which we encountered around 10000-30000 Rs.

per month .

About 75% people believe in investing their ideal money to get some return On it .Maximum

people knows about the various avenues to invest the money.

35% people want to invest money in real estate as they found that they will get higher

return on that.

People want to takes risk as 42% people were ready to take moderate risk & 32% people

were ready to take the high risk so to get the higher return.

From the analysis we reach to the conclusion that people want to invest in such product

where they get high return with minimal risk.

Also people want to save their income tax so that is why they invest in various products

offered by the bank.


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BIBLIOGRAPHY AND WEBLIOGRAPHY

Bibliography includes references, books, magazines, web sites and newspapers that are

used during any research. I used following bibliogra

taukir synopsis & report

Documents