A Presentation on

MARKETING OF SME PRODUCTSIN

CANARA BANK

By:Ramesh

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Flow of presentation:

Company Profile Products and services Introduction to SME Bank’s SME products Survey Suggestions

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Birth of Canara Bank

SRI AMMEMBAL SUBBARAO PAIBORN ON 19-11-1852

FOUNDED THECANARA HINDU PERMANENT FUND

ON 01-07-1906

LATER RECHRISTENED AS

CANARA BANK LIMITED IN 1910

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Corporate Vision

TO EMERGE AS A WORLD CLASS BANK WITH BEST PRACTICES IN THE REALMS OF

ASSET PORTFOLIO,

CUSTOMER ORIENTATION,

PRODUCT INNOVATION, PROFITABILITY

AND

ENHANCED VALUE FOR STAKE HOLDERS

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Corporate Mission

AUGMENTING LOW COST DEPOSITS

THRUST ON RETAIL LENDING

TONING UP ASSET QUALITY

ACCENT ON COST CONTROL

PRODUCT INNOVATION AND MARKETING

CUSTOMER CENTRIC FOCUS

LEVERAGING IT FOR COMPREHENSIVE MIS

MAXIMISING STAKE HOLDERS’ VALUE

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Growth of Canara Bank

The First Balance Sheet:

CAPITAL - Rs.50,000

DEPOSITS - Rs.42,000

ADVANCES - Rs.84,000

VOLUME - Rs.1,28,000

7[Source: www.rbi.org.in]

Volume of Business for the year 2005-2006

Rank Bank Volume

1 Canara Bank 1,96,000cr

2 Punjab National Bank 1,94,000cr

3 Bank of India 1,59,000cr

4 Bank of Baroda 1,53,000cr

5 Union Bank of India 1,27,000cr

6 Central Bank of India 1,03,000cr

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Products and Services

Personal banking Commercial Banking NRI Priority Sector Loans to SME International Services

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Introduction to SME(SME-Small and Medium Enterprise)

Definition:

Global perspective:

1to49 Employees – Small Enterprise

50 to 250 Employees- Medium

Enterprise

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Definition …

Indian perspective

Manufacturing Sector

(Original Inv in Plant & Mach.)

Service Sector

(original Cost of equ

used for service)

Micro Enterprise

Up to Rs.25 lk Up to Rs.10 lk

Small Enterprise

Rs.25lk to Rs.5cr Rs.10lk to Rs.2cr

Medium Enterprise

Rs.5cr to 10cr Rs.2cr to Rs.5cr

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Why SME financing….???

SSI financing is a constituent of priority sector credit.

More profitable

Less concentration of risk

Provides more job opportunities

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Canara Bank’s SME products:

Products catering to Term Loan requirements

Products catering to Working Capital requirements

Non-fund based services

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Bank’s Initiatives to promote SME products….

Exclusive Marketing set-up for SME Emphasis on new accounts SMS campaign Ads on Rediff and Money Control Seminars, workshops Gold card

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Survey: 3 Specialized SME branches Feedback on the following parameters Customers: Adequate Finance Speed Service Product Awareness Branch Managers: Constraints and Approach towards lending.

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Survey findings

Adequate Finance 76% - Bank finance adequate

New customers face difficulty - Lack of understanding of business environment by managers - Not keen to finance new ventures - Lack of powers at branch level

95% - Helped in expansion

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Survey findings Speed & Service

75% - Reasonably happy with Day-to-day transactions

90% - Not satisfied with the processing speed

Good service at specialized branches except BSB

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Survey findings Product & Awareness:

Rate of Interest – competitive Priority – Timely credit & Better Service Ready to pay upto 1% extra ROI Awareness mainly through Branch

officials (87%)

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Survey findings Branch Manager’s views:

Constraints for better service: -Lack of powers -Lack of initiatives by employees -Technology -Formalities -High expectations

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Suggestions:

Special training modules for managers on current Economic scenario

Extend Internet Banking to more branches and enable more transactions at ATMs

Increase Manpower (skilled)

Implement single window transaction

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Suggestions contd…

youngsters at counters

Recruit more Marketing Managers

Lend adequate support to Marketing Managers

Information from new customers

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THANK YOU