A SUMMER TRAINING REPORT ON OPTIMISING TURN AROUND TIME OF PAYMENT DELIVERY BY KOTAK MAHINDRA BANK

Submitted in the partial fulfillment of the Requirement for award of the degree of MASTER OF BUSINESS ADMINISTRATION (MBA) TO GURU NANAK INSTITUTE OF MANAGEMENT & TECHNOLOGY , MODEL TOWN LUDHIANA.

SUBMITTED BY Ravi Inder Singh MBA 3 A 104602248748

DECLARATION
I Ravi inder Singh S/o S.Surinder Singh a student of M.B.A (Session 2010-2012) at Guru Nanak Institute Of Management & Technology (GNIMT) Ludhiana.My institute Roll No.is 104602248748

I have to declare that I have completed my summer training Project titled OPTIMISING

TURN AROUND TIME OF PAYMENT DELIVERY AT RETAIL ASSET

DIVISION OF KOTAK MAHINDRA BANK LIMITED, LUDHIANA. I certify that it is my original work and have not been copied from any other student or any other source which can violate the Punjab Technical University. If in case my work is found copied, I shall be myself responsible for the consequences arising out of It.

Ravi inder Singh

CERTIFICATE

This is to certify that Ravi inder Singh has undergone his/her summer Training report titled OPTIMISING TURN AROUND TIME OF PAYMENT DELIVERY AT RETAIL ASSET DIVISION OF KOTAK MAHINDRA BANK, LUDHIANIA. Further, I certify that the work submitted by the above student is Original to best of my knowledge and have not been copied from any other student or any other source which can violate the Punjab Technical University. I wish him/her a bright career and life to come.

ACKNOWLEDGEMENT

It gives me tremendous pleasure in acknowledging the Valuable assistance extended to me by all the concerned Persons who helped me in the successful competition of this Report. I feel obliged to all of them.

I express my sincere thanks to MR. HARSH MARWAHA (Location head-Retail Assets Operations) Kotak Mahindra Bank, for allowing me to Carry out training and use all The facilities and documents required for the same and gave me a helping hand whenever I needed.

sRavi Inder Singh

PREFACE
Practical training constitute an integral part of the management studies Training gives an opportunity to the students to expose themselves to the Industrial environment which is quite different from the classroom Techniques. The practical knowledge is an important suffix to the Theoretical knowledge. One cannot rely merely upon theoretical knowledge. It has to be coupled with practical for it to be fruitful. Classroom lectures make the fundamental concepts of management clear but not their application in actual practice. A positive and correct result of the classroom learning needs realities of practical situation. The Training also enables the management students to them see the working conditions under which they have to work in Future. It thus enables the students to undergo those Experiences which will help them later when they join any Organization.

CONTENTS

Acknowledgement Preface Introduction to the company profile

Research Methodology
Problem statement Objective of study Research design Data collection Sampling design Limitation of the study

Data analysis and Interpretation Findings Suggestions Conclusions Annexure Bibliography

Company Profile

CORPORATE IDENTITY

KOTAK MAHINDRA BANK LIMITED

HISTORY
Established in 1984, Kotak Mahindra is one of the Indias leading financial institutions, offering complete financial solutions. From commercial banking, to stock broking, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. In February 2003, Kotak Mahindra finance limited, the group flagship company was given the license to carry on banking business by the reserve bank of India (RBI). Kotak Mahindra Finance Limited is the first company in the Indian history to convert to a bank. Recently Kotak Mahindra bank limited and HDFC bank have signed a memorandum of understanding to share their ATM network. This agreement will give customers of the two banks access to over 1400 ATMs across the country while HDFC Bank has 1335 ATMs across 228 locations in the country; Kotak Mahindra Bank has 75 ATMs at 41 locations, accessible 24 hours a day, and 365 days a year.

Kotak Mahindra Bank is offering access to HDFC Bank ATM network free of cost to most of its customers. The charges for HDFC Bank customer for using Kotak Mahindras ATMs are Rs. 18 for Cash withdrawals and Rs. 7 for Query-based transactions such as balance enquiry he group has a net worth of over RS 2900 crores employs around 8800 people in its various business and has a distribution network of branches. The group services around 2 million customer accounts.

KMBL is a full services financial services platforms holding company with several subsidiaries straddling businesses that range from the mundane (car finance) to the (investment banking). .

JOURNEY SO FAR

KOTAK MAHINDRA BANK LIMITED

KOTAK MAHINDRA CAPITAL COMPANY LIMITED:

Kotak Mahindra Capital Company Limited (KMCC) is India's premier Investment Bank and a Primary Dealer (PD) approved by the RBI. KMCC's core business areas include Equity Issuances, Mergers & Acquisitions, Structured Finance and Advisory Services, Fixed Income Securities and Principal Business.

KOTAK SECURITIES
Kotak Securities Ltd. is one of India's largest brokerage and securities distribution house in India. 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 co-coordinators. Kotak Securities Ltd. offers online (through www.kotaksecurities.com) and offline services based on well-researched expertise and financial products to the non-institutional investors.

KOTAK MAHINDRA PRIME LIMITED:

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 11,000 cores 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.

ORGANISATION CHART

MD UDAY KOTAK

ED DIPAK GUPTA HEAD OTE ARWIND KATHPALIA DIVISONAL HEAD HEMANT SHAH

HEAD IC HEMANT DAVE

ZOH NORTH GAUTAM MUNJAL

QUALITY AMIT BADHERA

ZOH WEST CLIFFORD

CLUSTER HEAD SHASHI HEAD PUNJAB/RAJ/CHD

CLUSTER HEAD PANKAJ JINDAL DELHI/NCR

CLUSTER HEAD PROMOD MOHANTHY GUJARAT

PROGRESS 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 Indias largest financial retail marketing networks 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 Prime Limited (formerly known as Kotak Mahindra Primus Limited). Kotak Mahindra takes a significant stake in Ford Credit Kotak Mahindra Limited, for financing Ford vehicles. The launch of Matrix Information Services Limited marks the Groups entry into information distribution.

1998 Enters the mutual fund market with the launch of Kotak Mahindra Asset Management Company.

2000 Kotak Mahindra ties up with Old Mutual plc. For the Life Insurance business. Kotak Securities launches its on-line broking site (now www.kotaksecurities.com). Commencement of private equity activity through setting up of Kotak Mahindra Venture Capital Fund. 2001 Matrix sold to Friday Corporation Launches Insurance Services 2003 Kotak Mahindra Finance Ltd. converts to a commercial bank the first Indian company to do so. 2004 Launches India Growth Fund, a private equity fund. 2005 Kotak Group realigns joint venture in Ford Credit; Buys Kotak Mahindra Prime (formerly known as Kotak Mahindra Primus Limited) and sells Ford credit Kotak Mahindra.

LOANSPROVIDED BY LOAN PROVIDED BY KMBL

PERSONAL LOAN

SARAL LOAN

COMMERCIAL VEHICLE LOAN

BUSINESS LOAN

MARKETING DEPTT

RCU DEPTT

CREDIT DEPTT

OPS DEPTT

RECOVERY DEPTT.

MISSION OF THE COMPANY

To provide error free quality service to all our customers with speed and smile by deploying best and innovative practices, enthusiastic talents, state of art technologies and thus create center of excellence in operations management. Our team pushes the limits so our clients can benefit.

Always looking forward, we are committed to fostering and developing successful business relationships. With a commitment to excellence and paying sharp attention to the quality of work and services, perfectionalism is our only acceptable standard.

KOTAK MAHINDRA BANK LIMITED

PROMISES

To deliver the highest standard of service quality.

To advise you of our TARGETED TURNAROUND TIME and adhere to

the same. To have transparency in all our transactions or dealings.

To have solution oriented mindset where customers are placed first.

To act courteously fairly and reasonably in all our dealing with you. To accept and act upon customers feedback/complaint.

SERVICES OFFERED:-

KOTAK MOBILE BANKING

FEATURES
I. No need to remember complex codes. II. Security through 128 bit encryption. III. Check account balance for current, saving accounts. IV. Transfer funds between accounts. V. Purchase mutual funds units.

KOTAK GOLD ETERNITY

FEATURES
I. 24 Pure gold bars. II. Manufactured in Switzerland by PAMP III. Certified by one of the top assayers in the world. IV. Tamper proof packaging to ensure the purity of gold bar.

PRODUCTS OFFERED

ATM

PHONE BANKING

NET BANKING

GLOBAL DEBIT CARD

AWARDS AND CERTIFICATES

2007

Awarded the 10th Best Employer in the recently Conducted Hewitts Best Employers in India 2007 Study. Best Investment Bank in India by Finance Asia. 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. 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 Asset Triple A Country Awards Awarded Voice of Customers Award for the Best Passenger Vehicle Finance Company in India in 2006 by Frost & Sullivan Best Investment Bank in India by Finance Asia Adjudged the best Mutual Fund House in the NDTV Business Leadership Award 2006

2005
Ranked as the top mergers & acquisitions advisor in India in terms of the value of Topped the India Advisory Partners In data League table in terms of the value of

mergers & acquisitions deals announced from January to December 2005.

deals announced for the calendar year 2005.

PRINCIPLES OF CUSTOMER SERVICE IN BANKING

1. By satisfying our clients business objectives we satisfy our own professional and personal objectives. 2. We want our client to regard Kotak Mahindra bank as their partner of choice time after time. 3. Satisfied clients become engaged clients, when they trust us, bond us and feel a sense of pride through an association with us. 4. Engaged clients forms a significant source of continued and improved growth. 5. An engaged client will actively sell our banks products and services to others. 6. Engaged client forms a sound commercial foundation for Kotak Mahindra Banks future. 7. Dont keep good news to yourself-inform the client of every success. 8. Give every client a reason to trust Kotak Mahindra bank. 9. Do what you said; you could do it, when you said you could do it. 10. Take personal ownership and responsibility for keeping the client informed of progress in any matter they have raised to you. 11. Let the client know in advance, if you will be unable to deliver as intended even bad news can be well received, if its conveyed in time. 12. Ensure all communications are reviewed before being sent to a client. 13. Treat all clients with equal and absolute respect.

RESEARCH METHODOLOGY

TURN AROUND TIME

 PROBLEM STATEMENT
The problem of our study is actual turn around time taken for delivering payment to the customer is greater than the standard turn around time.

Actual TAT > Standard TAT

The standard TAT is 4 hours as described by the internal policy but the actual TAT is 24 hours.

OBJECTIVE OF STUDY
Minimizing actual delivery timing for payment. Assessing recurring and controllable errors. Assessing training needs.

Actual TAT = Standard TAT

TURN AROUND TIME:-

Turn around time is generally the time taken for completion of a process. In this study the TAT should be understood as the time taken for the delivering of the payment from the time of file gets logged into the operations. This may be further understood with the following formula:

TAT: Payment Time Login Time

PROCEDURE OF DISBURSEMENT OF LOAN

SOURCING OF LOAN

APPRAISAL OF LOAN APPRAISAL OF LOAN STEP I

First the customer applies for a loan and fills the application form. The application form goes to the sales department and sales department will login the file and after login the files goes to the RCU

DISBURSEMENT will check all (risk control unit) department. The RCU department OF LOAN the documents and the
application form whether matches or not.

DISBURSEMENT OF LOAN

STEP II
After verification, the application form goes to the credit manager .the credit manager will approve the loan amount only if the customer is financially strong.

STEP III

After appraisal, the file goes back to the sales department and fulfills all the remaining documents. After this the file goes to the operation department and this department has certain checkpoints which are as given on the next page.

THE 13 CHECKPOINT OF OPERATIONS ARE AS FOLLOWS:1) APPLICATION FORM

Photograph of all related parties is affixed. Purpose of loan. PAN No. All relevant details filled and signed by all the parties. Loan amount applied in application form is>=than loan approved. Any alteration made should be authenticated by borrower. Date of birth of all parties complete mailing address with pin code.

2) BCIF(Bank customer information)

Specify the name of the existing party with party ID. All party to the contract is attached to the APAC. Customer name in BCIF should be full and correctly captured in system. Occupation & profession of borrower is Captured in BCIF. Customer risk classification is captured in BCIF. KYC(Know your customer)documents to be collected for all parties to agreement consisting of: IDENTITY PROOF SIGNATURE VERIFICATION DATE OF BIRTH AND PAN NO. ADDRESS VERIFICATION.

3) CREDIT APPROVAL SHEET

Party name matches with CAS. CAS to be signed by the credit manager. Exposure and rate to be approved with approval authority matrix. Any waiver has to be approved By AAM. NCIF (Negative customer search) has to be attached in file.

4) APPROVALS
Rate to be approved By Authority matrix. Exposure to be approved by authority matrix.

5) LOAN AGREEMENT
Loan agreement is signed by the individual borrower, on individual borrower, and Kotak bank employee who is authorized to sign the agreement. Common seal should be affixed on the agreement. Loan documents should be stamped including guarantor party. If any party has signs in any vernacular language then separate declaration has to be fixed on last page of agreement. If any party is illiterate and blind, a separate declaration has been obtained on the last page.

6) FI VERIFICATION (FIELD INVESTIGATION)

External FI Report has been attached & duly signed & stamped by approved FI agency. Internal FI is compulsory for Saral cases. Address in FI matches with core.

7)

REPAYMENT MODE-(PDC\SI\ECS)
Is the mode of repayment availed is as per CAS. No of PDC matches with cash flow information PDC are duly signed and filled. PDC should be drawn in favour of Kotak Mahindra bank limited

8) CROSS COLLATERALS
For collateral assets, RC\Insurance policy\undertaking from owner of asset for collateral available. (Additional collateral) RTO booklet signed for collateral booklet. Cross collateral marking should be required.

9)

REFINANCE CASE
Valuation report is issued by an approved valuer and photograph of the asset is availed. RC \insurance policy received for the same asset endorsed in favour of KMBL. Sum insured value is at least equal to amount financed as per CAS.

10)

PARTY OTHER THAN INDIVIDUAL Where partnership firm is party to the agreement: Copy of partnership deed is authenticated by one of the partners. NOC (no objection certificate) on letter head of the firm is signed by the authorized partner. Signature of all the partners matches with the partnership deed.

Where company is party to the agreement

 Copy of MOA & AOA of the company duly certified by the director of the company. Common seal of the company is affixed on loan agreement.

Where HUF is party to the agreement

Copy of trust deed is certified by one of the trustee. HUF declaration has to be obtained in format defined.

11) CREDIT LIFE Application form is completely filled with regards to ticking in insurance clause. Insured party DOB matches with the KYC document. Declaration of good health should be signed by the customer. Insurance premium and handling charges has been calculated. Insurance details should be mentioned in CAS. KLI should be filled in respective file.

12) KLI DIRECT Dully filled & authorized letter submitted for initiating payment to KLI.

13)

OTHER AREAS
RO copy is attached in the file. CIBIL & NCIF details are attached.

 brokerage to be entered in the system Asset creation and updating in EIS Cash flow & proposal printout to be attached in the file.

If the file does not fulfill the checks as listed above then file has to move back to the originating point. Whereas if all the checks are found to be ok then payment is disbursed and handed over. And file which was logged out with the pendencies on the failure of the checks , re login with the operations department checked for those points again , thereafter the payment is disbursed. Those files which get through in the first instance called first pass through. FPT

(FIRST PASS THROUGH).

RESEARCH DESIGN
Conclusive Research Design

Exploratory Research Design

Descriptive research Design

Causal research

RESEARCH DESIGN

The research design is a pattern or an outline of a research projects working. It is a statement of only the essential elements of a study those that provide the basic guidelines for the details of the project. The present study being conducted followed a DESCRIPTIVE RESEARCH DESIGN.

METHODS OF DESCRIPTIVE RESEARCH DESIGN

SECONDARY DATA PANELS
OBSERVATION OF OTHERS

SURVEY

COLLECTION OF DATA

In dealing with real life problems it is often found that the data at hand area is inadequate and hence it becomes necessary to collect data that are appropriate. There are several ways of collecting data which differ considerably in context of money, cost, time and other resources at the disposal of the researcher.

DATA COLLECTION

PRIMARY DATA

SECONDARY DATA

QUALITATIVE DATA

QUANTITATIVE DATA

DESCRIPTIVE

CASUAL

EXPERIMENTAL DATA

SURVEY DATA

OBSERVATIONAL DATA

Secondary Data:

Secondary data is that data which is already published and collected not

for particularly this research design and mostly this data is accessible to all. Secondary data are data that were collected by persons or agencies for purposes other than solving the problem at hand. They are one of the cheapest and easiest means of access to information. Secondary data can be valuable source of new ideas that can be explored later through primary research.

Primary Data:

Primary Data is the method of data collection where data is collected for a

particular research. Here the objective is clearly known to the data collector. Moreover the primary data thus colleted may be used for other researches also as secondary data. In this research Primary Data has been used.

Below is the table showing 12 number of cases which were selected for the Research.
TABLE 1.0 Table showing the Actual time taken and deviation with the standard time
Sr No. PARTY NAME AP L SA SA SA SA SA SA SA SA SA SA SA APAC LOGIN TIME LOGIN DATE 29-Jun08 29-Jun08 28-Jun08 25-Jun08 29-Jun08 28-Jun08 28-Jun08 25-Jun08 28-Jun08 13-Jun08 25-Jun08 DATE OF ISSUE 04-July08 30-July08 29-Jun08 25-Jun08 30-Jun08 28-Jun08 29-Jun08 25-Jun08 29-Jun08 14-Jun08 26-Jun08 TIME OF ISSUE 2:00 P.M 2:00 P.M 7:30 P.M 7:00 P.M 7:15 P.M 7:00 P.M 7:30 P.M 7:30 P.M 7:30 P.M 2:00 P.M 2:00 P.M ACTUAL TIME 42 HRS 24 HRS 25 HRS 30 MIN 9 HRS 29 HRS 15 MIN 4 HRS 26 HRS 30 MIN 5 HRS 30 MIN 25 HRS 30 MIN 22 HRS 22 HRS STD TIME 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS 4 HRS TAT

1 Gumeet Singh 2 Jagdev Singh 3 Ranjit Singh 4 Roop Chand 5 Santosh Singh Jaswinder 6 Singh Satwinder 7 Singh 8 Pawan Kumar 9 Sukhder Singh 10 Paramjit Singh 11 Madhu Bala

22372 0 1:25 P.M 22367 0 1:25 P.M 22314 7 5:55 P.M 22137 2 10:00 AM 22356 3 1:40 P.M 22257 7 3:00 P.M 22324 8 4:59 P.M 22140 9 2:00 P.M 22292 9 5:49 P.M 22012 6 3:54 P.M 22170 1 4:06 P.M

38 HRS 20 HRS 21 HRS 30 MIN 5 HRS 25 HRS 15 MIN NA 22 HRS 30 MIN 1 HRS 30 MIN 21 HRS 30 MIN 18 HRS 18 HRS

SAMPLING TECHNIQUES

PROBABILITY SAMPLING TECHNIQUES

NON PROBABILITY SAMPLING TECHNIQUES

SIMPLE RANDOM SAMPLING

SYSTEMATIC SAMPLING

STRATIFIED SAMPLING

CLUSTER SAMPLING

CONVIENCE SAMPLING

JUDGMENTAL SAMPLING

QUOTA SAMPLING

SNOWBALL SAMPLING

 PROBABILITY SAMPLING
A Probability sample is one in which each member of the population has an equal chance of being selected.

NON PROBABILITY SAMPLING

In a non probability sample, some people have a greater, but unknown chance than others of selection.

SAMPLING

Sampling is the art, process, or technique of selecting a suitable sample, or a representative part of a population for the purpose for the purpose of determining parameters or characteristics of the whole population. Sampling is an effective step in the collection of primary data and has a great influence on the quality of results. The sampling plan includes the Sample Size and Sampling Design

Sample Size: Sample Size is the number of samples picked from the universe. Samples
are selected and statistics are calculated from the samples so that one can make inferences and extrapolations from the sample to the population. For this study 12 numbers of samples were picked out of 42 universes available for the month of June 08.

Sample Design: Sample design is the style of sampling, in which the sample size is
selected out of the available universe. Since the whole set of Data was scattered into the three different Clusters i.e.

o Personal Loans o Commercial Vehicle Loan. o Saral Loans

Out of these three clusters the research was centered only at Saral Loans. Further out of this cluster 12 set of cases were picked for study from the month of June where the universe size was 42 randomly. Hence the sample design was the hybrid of CLUSTER SAMPLING

with SIMPLE RANDOM SAMPLING.

SIMPLE RANDOM SAMPLING

Random sampling is the purest form of probability sampling. Each member of the population has an equal and known chance of being selected when there are very large populations, it is often difficult or impossible to identify every member of the population.

CLUSTER SAMPLING
A cluster sample is obtained by selecting clusters from the population on the basis of simple random sampling. The sample comprises a census of each random cluster selected.

LIMITATION OF STUDY

Every research problem has the hindrances with regard to so many factors; similarly in this research also there were some limitations which have the impact on the research to some extent.

Time constraint was one of the limitations in the study. The study was centered at only one cluster hence the other two clusters were not taken into the consideration, which may have the impact on result. Banking is the very vast Industry and the knowledge of the researcher is limited.

DATA ANALYSIS AND INTERPRETATION

The total numbers of cases studied showed the total of 43 errors which have been plotted below into BAR CHART AND PIE CHART as per the given criteria.

TABLE 2.0
Table showing the total number of errors through out the category. CATEOGARY
Application Form BCIF Credit approval sheet Loan agreement Approvals FI Verification Repayment Mode Refinance Mode Credit Life Document Charges Stamp Charges Other Areas 5 11 5 3 1 4 1 1 1 4 4 4

ERRORS

Bar diagram showing the frequency of errors

TABLE 2.1
Application Form BCIF Credit approval sheet Loan agreement Approvals FI Verification Repayment Mode Refinance Mode Credit Life Errors No.of erroes Document Charges Stamp Charges Other Areas

12 10 8 cateogory 6 4 2 0

From the chart 2.1 it is evident that the errors related to BCIF have the high number of occurrence followed by application form and credit approval sheet .the same is also shown in PIE CHART 2.2

TABLE 2.2 No. of erros

Application Form BCIF Credit approval sheet Loan agreement Approvals FI Verification Repayment Mode Refinance Mode Credit Life Document Charges Stamp Charges Other Areas

CLASSIFICATION OF ERRORS

The errors may be classified into following groups:-

FINANCING ERRORS
NON FINANCING ERRORS

FINANCING ERRORS
Financing errors is the group which has the direct impact on the financial part and this is very critical in nature.

These errors are as follows:-

CREDIT APPROVAL SHEET LOAN AGREEMENT APPROVALS FIELD INVESTIGATION DOCUMENT CHARGES BANK CHARGES

NON FINANCING ERRORS

Non financing errors may be considered as the less critical as compared to financial errors. But this is also not neglectable.these errors may be due to wrong data entry or negligence, incomplete documentation etc. In this group following errors may be considered:-

APPLICATION FORM BCIF REPAYMENT MODE REFINANCE MODE CREDIT LIFE STAMP CHARGES

As per study and collected data, the financing errors are less as compare to non financing errors but still the occurrence of even single financing error may lead to heavy losses to the bank.

COMPARATIVE ANALYSIS OF FINANCING AND NON FINANCING ERRORS

FINANCING ERRORS

FINANCING ERRORS

ERRORS 5 3

Credit Approval Sheet Loan Agreement Approvals

FI Verification
4

Document Charges
4

Other Areas
4

BAR DIAGRAM SHOWS T HE FREQUENCY OF FINANCING ERRORS

5 4 NO OF 3 ERRORS 2 1 0 Errors FINANCING ERRORS credit approval sheet Loan agreement approvals FI Verification Document charges Other areas

NON FINANCING ERRORS

NON ERRORS

FINANCING Errors 5

Application Form BCIF

11

Repayment Mode
1

Refinance Mode
1

Credit Life
1

Stamp Charges
4

B A R D IA G R A M S H O W S T H E F R E Q U E N C Y O F N O N F IN A N C IN G E R R O R S
12 10 8 NO OF ERRORS 6 4 2 0 E rro r s N O N F IN A N C IN G E R R O R S A p p lic a t io n F o rm B C IF R epaym ent M ode R e fin a n c e M o d e C re d it L ife S ta m p C h a rg e s

SUGGESTIONS

1) TRAINING NEEDS
During the study it was noticed that the manpower involved in the preparatory of files with the sales (the coordinators) are new to the system and need an ongoing training. It is suggested that there should be at least two training programmes in a month to be conducted by operations.

2) WORK PRESSURE
Further it was observed that the major volume of the files logged into the operation in the last 10 days of the month. Almost 65% volume is punched only in last 10 days which create irregular pressure on the coordinators and resulted into errors. Therefore suggested that the entire volume should have an equal spread through out month.

3) RESPONSIBILITY ALLOCATION
At the present time the entire responsibility is centered at the coordinators only whereas it should be equally allocated to the field staff as well.

4) INCENTIVE PLAN
There should be an incentive plan linked with the first pass through the more the ratio is the higher the % will be .it will help in improving the quality.

CONCLUSION
There should be more stress on financial error quality. Ownership should be distributed amongst field staff as well. Incentive plan should be started.

 Regular training should be conducted. Skew ness of volume has to be equated in to the normal trend. Learning should be taken from the previous month error report. Maker checker concept may be introduced at the level of coordinators only.

BIBLOGRAPHY
BOOKS
1. Business Research Methodology, C.R Kothari. 2. Principles of Marketing, Philip kolter. 3. Business Research, Kopper.

 WEBSITE
www.kotak.com www.kotakintranet.com

SEARCH ENGINE
www.google.com