Marketing strategies adopted by various Banks in Shimla

8/12/2019 Marketing strategies adopted by various Banks in Shimla

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A THESIS ON

Marketing strategies adoptedby various Banks in Shimla.

SUBMITTED TO- Mr. Vinod Negi SUBMITTED BY- Amit Kumar

(THESIS GUIDE Uni!. ID. - "#"$%$$&"'

MBA (%""#-%"$"

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MANAGEMEN THESIS

ON

Marketing strategies adopted by various

Banks in Shimla.

re)ared B*+

Amit Kumar

MBA (%""# , %"$"

A report submitted in partial fulfillment of the requirements of

THE MBA PROGRAM

(The Class of 2!"2#$

%&C

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ETI/IATE

This is to 'ertif that Mana)ement Thesis titled 0Mar1eting 2trategie2 ado)ted 3* !ariou2

Ban12 in S4im5a.6submitted b Amit Kumar7 Uni!. ID. - "#"$%$$&"'durin) semesterIIIrd

of the MBA Pro)ram (The Class of 2!"2#$ embodies ori)inal *or+ done b him,

-i)nature of the fa'ult super.isor

&ame (in Capital letters$ + ----------------------------------------------------------------------

/esi)nation + ----------------------------------------------------------------------

Campus + ----------------------------------------------------------------------

/ATE0000000000000000000 P1ACE00000000000000000000

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AKNO89EDGMENT

% *ould li+e to epress m deep and sin'ere )ratitude to m thesis )uide3 Mr, 4inod

&e)i3 fa'ult of finan'e in %&C -himla, His *ide +no*led)e and his lo)i'al *a of thin+in) ha.e

been of )reat .alue for me, His understandin)3 en'oura)in) and personal )uidan'e ha.e

pro.ided a )ood basis for the present thesis ,% )ratefull a'+no*led)e for his super.ision3

ad.i'e3 and )uidan'e from the .er earl sta)e of this resear'h as *ell as )i.in) me

etraordinar eperien'es throu)hout the *or+, Abo.e all and the most needed3 he pro.ided

me unflin'hin) en'oura)ement and support in .arious *as, % am indebted to his more than he

+no*s,

% )ratefull a'+no*led)e Mr, Pare 1al fa'ult of e'onomi's in %&C -himla for his

te'hni'al ad.i'e3 super.ision3 and 'ru'ial 'ontribution3 *hi'h made him a ba'+bone of this

resear'h and so to this thesis, His in.ol.ement *ith his ori)inalit has tri))ered and nourished

m intelle'tual maturit that % *ill benefit from3 for a lon) time to 'ome, % feel indebted to other

fa'ult members for bein) a 'ontinuous sour'e of inspiration3 learnin) and ad.i'e3 *hi'h

helped me throu)hout the time period of m learnin) in Mana)ement -tudies,

The resear'h pro5e't *as dis'ussed in details *ith *ide ran)e of eperts *ho are mfriends and peers3 before the field resear'h *as underta+en3 and findin)s *ere also dis'ussed

shortl before the publi'ation of this report, The .alue of 'ontributions made in these

dis'ussions *as 'onsiderable3 and inputs of all parti'ipants and 'ontributors are hereb dul

a'+no*led)ed,

% *ant to a'+no*led)e *ith )reat respe't m 6ather and Mother for bein) a sour'e of

inspiration3 learnin) *ith spiritualit and in.aluable ad.i'e, Their support and the sa'rifi'ial

)i.in) of themsel.es ha.e been eemplar, M heartfelt lo.e and )ratitude )oes to m brother

and friends for their faith3 hope3 en'oura)ement and un'onditional lo.e for me, Most of all3 %

*ant to a'+no*led)e and than+ m -a.ior and 1ord3 the Almi)ht God for the man mira'les

He has performed in m life, M life and m *or+ is trul3 the result of His,

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TAB9E O/ ONTENTS

A:1no;5edgment2 @2 Strateg* o> t4e2e Ban12 &?

. S8OT Ana5*2i2 o> t4e Ban12 ==

'. Ana5*2i2 o> t4e Data

@. /inding27 e:ommendation2 and on:5u2ion '#6indin)s77777777777777777777777777777777?=Re'ommendations777777777777777777777777777,,8

Con'lusion77777777777777777777777777777778#

APPE&/%C-777777777777777777777777777777777777,,82B%B1%OGRAPH@7777777777777777777777777777777777,,,8?

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HATE I

Introdu:tion

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INTODUTION

Ban+in) in todas life has be'ome an important part, Ban+s pro.ide funds for business

as *ell as personal needs of indi.iduals, The pla a si)nifi'ant role in the e'onom of a

nation, Ban+in) en'oura)es sa.in) habit amon)st people, People are earnin) for their li.in)

but the standard of li.in) has ta+en a sharp rise due to the ne* te'hnolo), People not onl

*ant to sa.e their hard earned mone in the ban+s but also *ant it to )et multiplied from

.arious fa'ilities pro.ided,

Pain) our utilit bills3 prepaid mobile re'har)e3 debit and 'redit 'ards et' , All su'h ne*

fa'ilities not onl sa.e their time but are mu'h safe, &o need to 'arr mone in lar)e amounts

*ith the in.ent of ATM 'ards, People are in.estin) their mone in ban+s pain) hi)h interest

rate and also in /emat a''ounts for share tradin), This has all be'ome possible be'ause of

the ad.an'e %nformation Te'hnolo) that people are in 'onstant tou'h *ith their mone from

an*here,

Mar1eting in Ban1ing Se:tor

Mar+etin) as a 'on'ept *as )enerall asso'iated *ith tan)ible )oods li+e 'onsumer

and manufa'tured )oods, Graduall the prin'iples of mar+etin) *ere applied to businesses

intan)ible )oods also li+e finan'ial ser.i'es, Ban+s as pro.iders of finan'ial ser.i'es had a

monopol in pro.idin) ser.i'es to 'ustomers3 in the earl ears of ban+in) business, E.en

thou)h ban+s had used one or t*o 'omponents of mar+etin) at that time3 prin'ipall the *ereen)a)ed in sellin) of ban+in) ser.i'es, A't of sellin) fo'uses on the need of seller *hile

mar+etin)fo'uses on the need of the buer,

Before the mid"#=


8/81

b openin) more bran'hes, Ban+s de.eloped ne* produ'ts and ser.i'es in the #=!s to 'ater

to the .arious needs of in'reasin) number of 'ustomers,

Dith the ad.ent of ban+in) se'tor reforms3 the s'enario of ban+in) in the #==s has

totall 'han)ed, %n order to brin) effi'ien'3 a''ountabilit and hi)h de)ree of 'ustomer

ser.i'e3 'ompetition has been indu'ed b )rantin) li'ense for ban+in) business to ne*operators li+e pri.ate ban+s3 lo'al area ban+s3 forei)n ban+s3 re)ional rural ban+s and

'ooperati.e ban+s, %n su'h a 'ompetiti.e en.ironment3 the abilit of a ban+ to a'hie.e )ro*th

rate depends on ho* *ell the needs of 'ustomers are identified and effe'ti.e mar+etin)

strate)ies e.ol.ed, This in.ol.es de.elopin) ne* and impro.ed produ't and ser.i'es3

pro.idin) better amenities and fa'ilities3 eplorin) ne* distribution 'hannels and e.ol.in)

effe'ti.e mar+etin) strate)ies so as to 'ontinuousl meet the 'han)in) 'ustomer needs,

Signi>i:an:e o> t4e Stud*

The 'ontinuin) pro'ess of liberali;ation in the finan'ial se'tor *ill lead to further

in'rease in 'ompetition3 and hasten disintermediation, Chan)in) 'ustomer epe'tations3

ad.an'es in te'hnolo) and )lobali;ation of the e'onom are the ne* dimension that has

brou)ht )ro*in) pressures on ban+s in terms of de'linin) profitabilit and attendant

impli'ations on ban+ .iabilit,

These ma+e it imperati.e that a detailed stud is underta+en to find out the eistin)*as of doin) business b 'ommer'ial ban+s3 their present mar+etin) te'hniques and su))est

mar+etin) strate)ies to sta ahead in business, The stud of stren)ths and *ea+nesses of the

eistin) mar+etin) te'hniques isepe'ted to be useful to operatin) staff and poli' ma+ers of

ban+s in impro.in) the effe'ti.eness of internal mar+etin) and in framin) future mar+etin)

strate)ies,

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HATE II

Re.ie* of 1iterature and

Resear'h Methodolo)

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e!ie; o> 9iterature

9eig4ann Nei52on and Meg4a 4ad4a (%""# - This stud presents an o.er.ie* of the

mar+etin) strate) that a retail ban+ ma pursue *hen it tar)ets home 'ountr nationals in a

forei)n mar+et, An analsis of the mar+etin) strate) of %C%C% Ban+ in Canada re.eals that a

transnational strate) 'oupled *ith an ethno'entri' staffin) poli' allo*s the parent firm to

retain 'ontrol3 *hile the 'hoi'e of a subsidiar as an entr mode allo*s for lo'al

responsi.eness, 6urther analsis illustrates that the blend of .arious .ariables in the ser.i'es

mar+etin) mi (ie pri'e3 pla'e3 promotion3 parti'ipants3 phsi'al e.iden'e3 and pro'ess$ 'an

help in attainin) 'ustomer satisfa'tion,

Su)ri*a Sing4 ( %""= " This paper eamines the mismat'h bet*een the impersonalit of

ele'troni' mone on the one hand and Australian 'ustomers desire to ha.e a personalban+in) relationship on the other, This )ap is illustrated b a 'riti'al appraisal of literature

relatin) to the so'iolo) of mone3 the adoption of information and 'ommuni'ation

te'hnolo)ies and self "ser.i'e te'hnolo)ies, The paper ar)ues that ban+"mar+etin)

professionals adopt an a'ti.it"'entered so'ial mar+etin) strate), This strate) pla'es

'ustomers and their a'ti.ities at the 'entre to help ensure a fit bet*een pament a'ti.ities3

ser.i'es3 and .alues relatin) to mone *ithin different 'ultural 'ontets, The strate) has

mana)erial impli'ations for3 *hen paments ser.i'es are tra'+ed a''ordin) to 'ustomers and

a'ti.ities3 the data required are different from data )enerated b follo*in) 'ustomer se)ments

and produ'ts, An a'ti.it"'entered so'ial"mar+etin) strate) has the potential to in'rease trust

in ban+s and halt the shift of finan'ial relationships to intermediaries su'h as bro+ers andfinan'ial planners,

Hu3ert Gatignon (%""= " His resear'h areas in'lude modelin) the fa'tors influen'in) the

adoption and diffusion of inno.ations and measurin) ho* the effe'ts of mar+etin) mi

.ariables 'han)e o.er 'onditions and o.er time, His 'urrent resear'h deals *ith inno.ation

strate)ies3 as *ell as international mar+etin) strate),

A4med A5-AC5ouni (%""?

- This stud aims at formin) strate)i' response to assess the abilitof %slami' ban+s in benefitin) from the opportunities that ma be pro.ided b finan'ial

)lobali;ation and limits its threats3 throu)h assessin) the 'apabilit of %slami' ban+s to meet

the requirements and 'hallen)es of finan'ial )lobali;ation3 then su))ests the suitable

strate)ies that ma be adopted b %slami' ban+s to maimi;e and limit the epe'ted

opportunities and threats respe'ti.el,

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A. Karunagaran (%""" This paper attempts to eplore the s'ope for ban'assuran'e models

as feasible sour'e of sustainable in'ome to ban+in) se'tor b eploitin) the sner) in the

'ontet of %ndia ha.in) the lar)est ban+in) net*or+ on the one hand and lo*er insuran'e

penetration and insuran'e densit on the other hand, Dhile anal;in) the present trend of

ban+s handlin) insuran'e produ'ts3 it also hi)hli)hts some of the li+el issues in )eneral as

*ell as spe'ifi' from the point of re)ulator and super.isor, %t 'on'ludes that )oin) b the

present pa'e3 ban'assuran'e *ould turn out to be a norm rather than an e'eption in future in

%ndia and it *ould be a *in"*in situation for all the parties in.ol.ed " the 'ustomer3 the

insuran'e 'ompanies and the ban+s,

Iu5iana etina Nora Mi4ai5 (%""@ - All or)ani;ations must settle a pri'e for the ser.i'es the

offer, The pri'e for ser.i'es is an important element of the mar+etin) mi3 bein) an important

in'ome sour'e for the or)ani;ation, The settlement of a 'orre't pri'e3 both for the mar+et and

the 'ompetition3 is a si)nifi'ant element for the se'tor of finan'ial " ban+in) ser.i'es, Anotherimportant fa'tor to ta+e into 'onsideration is the fa't that the ban+s do not settle onl the pri'es

for indi.idual ser.i'es3 but also 'oordinate their pri'es for ser.i'e pa'+a)es, As the 'ompetition

in the finan'ial " ban+in) ser.i'es has intensified3 the settlement of 'orre't pri'es has be'ome

an essential element for the mar+etin) strate), &e.ertheless it is important to remind that the

pri'e is not a 'entral element, There are other si)nifi'ant )rounds3 the pri'e bein) onl one of

the elements of the mar+etin) mi, Althou)h in Romania man 'ustomers ma be sensiti.e in

present to the pri'e3 as the 'ompetition *ill in'rease3 the qualit of the ser.i'es *ill be'ome

more important to the 'ustomers3 and the demand *ill be 'omple,

ar2ten E))endor>er7 ainer Be:1mann7 Mar1u2 Neim1e (%""% " The inte)ration pro'ess

in the European ban+in) se'tor 'onsiderabl differs *ith re)ard to produ't tpes, /eep

inte)ration 'an be obser.ed in the mone mar+et as *ell as the mar+et for *holesale produ'ts,

%n 'ontrast to that3 a stron) se)mentation of national mar+ets still eists in the field of retail

produ'ts, %n this 'ontet3 the paper analses mar+et a''ess strate)ies of European ban+s, The

analsis is based both on a))re)ate se'toral data and on four 'ompan 'ase studies ( BSCH3

Nordea Group3 BNP Paribas and HSBC$, %t is eplored to *hi'h etent different mar+et a''ess

strate)ies 'ontribute to the inte)ration of the European retail mar+ets, A 'lear result is that

mer)ers and a'quisition as *ell as 'ooperations and strate)i' allian'es form the mostimportant mar+et a''ess strate)ies, /ire't 'ross"border sales and the establishment of

bran'hes and subsidiaries are of minor importan'e, All strate)ies are 'ompli'ated b

'onsiderable natural and politi'all indu'ed barriers to mar+et a''ess, %n parti'ular3 su'h

politi'all indu'ed barriers are different national super.ision of ban+s3 different ta le)islation3

as *ell as national a''ountin) and ta+e"o.er prin'iples, Here3 further harmoni;ations are

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suited to a''elerate the inte)ration of European retail mar+ets and thus to in'rease 'onsumer

benefits b lo*er pri'es and a hi)her produ't .ariet for finan'ial ser.i'es,

Kin-nam 9au7 Hai5* 4o; and onnie 9iu (%""= " Competition amon) ban+s all o.er the*orld is )ettin) in'reasin)l fier'e and the effe'ti.eness of traditional mar+etin) 'ampai)ns is

redu'in) at an alarmin) rate, To maintain 'ompetiti.eness3 ban+s ha.e to adopt ne*

approa'hes to impro.e mar+etin) and operational effi'ien', This paper fo'uses on the issues

pertainin) to the database approa'h to 'ross sellin)3 *hi'h is belie.ed to be the +e .alue"

enhan'er in the future, -in'e Hon) Fon) is al*as re)arded as the mirror of the future for

China3 the authors use Hon) Fon) as an eample to illustrate the pra'ti'es3 strate)ies and

'hallen)es of 'ross sellin) in the ban+in) industr, -tories of 'ross sellin) in Hon) Fon) toda

*ill soon be retold in China *ith its #,9 billion retail 'ustomers3 and ma si)nifi'antl influen'e

future 'ross sellin) operations and strate)ies there,

e2ear:4 Met4odo5og*

Statement o> t4e ro35em

Globali;ation of the e'onom and inte)ration of finan'ial se'tor *ith that of the *orld

has also enabled ban+s to brin) the latest trends of ban+in) industr at the doorstep of %ndian

'ustomers, Toda understandin) the needs3 desires and problems of 'ustomers and redefinin)

its business operation for satisfin) 'ustomer needs are the ma5or 'hallen)es fa'in) the

ban+s, Mar+etin) has thus emer)ed as an important element in the a'ti.ities of ban+s,

%n this 'ontet it *ould be hi)hl re*ardin) to eamine as to *hat etent %ndian ban+s

ha.e been su''essful in meetin) the need of 'ustomers, More spe'ifi'all3 the attention )i.en

to produ't de.elopment3 pro.ision of fa'ilities and amenities3 internal mar+etin) and .ariouspromotional strate)ies need in"depth analsis, The present stud is an effort in this dire'tion,

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ationa5 3e4ind t4e Stud*

Mar+etin) -trate) pro.ides a pra'ti'al strate)i'3 mana)erial approa'h to mar+etin)3 to

balan'e or)ani;ation ob5e'ti.es and resour'es a)ainst needs and opportunities in the

mar+etpla'e,

Mar+etin) is the business a'ti.it that identifies an or)ani;ations 'ustomer needs and

*ants and determines *hi'h tar)et mar+ets a 'ompan 'an ser.e and ho* best to do so

mar+etin) helps )uide the desi)n of appropriate produ'ts3 ser.i'es and pro)rammers to ser.e

these mar+ets, This pro)ram helps members learn and appl the 'on'epts and pra'ti'es of

modern mar+etin)3 in'ludin) in produ't and ser.i'e firms3 'onsumer and business mar+ets3

profit and non"profit or)ani;ations3 domesti' and )lobal 'ompanies and small and lar)e

businesses3 and to do so b 'on'entratin) on the strate)i' elements of mar+etin), This

Pro)ram loo+s at mar+etin) 'on'epts from a strate)i' point of .ie*3 and pro.ides a frame*or+

for mar+etin) and mana)ement thin+in) it 'onsiders ho* to underta+e strate)i' mar+et

plannin) and de.elop 'ore strate) to define and se)ment mar+et3 build relationships throu)h'ustomer satisfa'tion3 qualit3 .alue and ser.i'e and a'hie.e )ro*th,

Mar+etin) not onl important for ban+in) se'tor3 it is a .ital arm of an se'torIfirm,

Dithout mar+etin) one firmIbusiness entit 'ould not ser.e a lon), Ho* better

ser.i'esIprodu'ts ou offer for the publi'3 the ad.anta)es of usin) our produ'tsIser.i'es

should rea'h the publi', %t ma be ad.ertisement3 )ood qualit3 timel attention and man more

fa'tors,

Comin) to ban+in) se'tor3 in the present situation of )lobali;ation3 as a bi) mar+et of

the *orld3 our %ndia is fa'in) tou)hest 'ompetition from )lobal ban+s, %n this situation it is mustto ha.e )ood mar+etin) department and )ood mar+etin) strate),

Therefore3 the need is arises to +no* about the Mar+etin) -trate)ies *hi'h 'an be

adopted b Ban+s to maimi;e their business profit,

O3Ce:ti!e o> Stud*

The follo*in) are the ob5e'ti.es of the studJ#$ To eamine the di.ersified needs of ban+ 'ustomers in -himla,

2$ To stud the mar+etin) te'hniques follo*ed b ban+s in -himla,

9$ To find out the most effe'ti.e mar+etin) strate) adopted b an ban+ to position itself

as a 'ustomer"oriented ban+,

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e2ear:4 De2ign

%n pursuan'e of the ob5e'ti.es and hpotheses3 the follo*in) methodolo) *as adopted

for 'ondu'tin) the present stud,

The resear'h desi)n adopted for the stud is des'ripti.e in nature and *as 'ondu'ed int*o sta)es,

%n the first e)5orati!e 2tage of this stud3 a re.ie* of literature *as underta+en to

familiari;e the resear'her *ith .arious aspe'ts of the stud3 to e.ol.e appropriate methodolo)

and to formulate a 'on'eptual frame*or+ for the stud, 4ariousresear'h 5ournal3 published in

%ndia *ere perused at librar in %C6A% &ational Colle)e3 -himla and -tate librar3 -himla,

Reports on Curren' and 6inan'e and Reports on trends and pro)ress of ban+in) in %ndia

*ere also 'olle'ted and re.ie*ed apart from 5ournal li+e C6A (Chartered 6inan'ial Analst$

Bulletin and -B% Monthl Re.ie*,

%n the se'ond sta)e3 )rimar* data*as 'olle'ted from indi.idual 'ustomers3 staff of

ban+ b administerin) an %nter.ie* to )et responses on a*areness of finan'ial ser.i'e needs3

mar+etin) te'hniques3 fa'ilities and amenities3 produ't strate)ies3 effe't of internal mar+etin)

and promotion strate)ies, To 'ontrol the response bias and to in'rease the reliabilit of data3 a

stru'tured pattern of questions *as used in the %nter.ie* -'hedule,

i5ot 2tud* and /ina5iing Inter!ie; S:4edu5e

The %nter.ie* -'hedule drafted for Customers *ere first tested b 'ondu'tin) a pilotstud, 6or the purpose of the pilot stud3 a field sur.e *as 'ondu'ted amon) t*ent"fi.e

indi.idual 'ustomers of ban+ in shimla *hi'h are the part of sample, %n the li)ht of pilot sur.e

results3 su))estions and 'riti'isms made b the super.isin) tea'her3 the draft inter.ie*

s'hedule *as re.ised and the questions 'ontainedJ

a$ Close ended tpes *ith di'hotomous options3

b$ Multiple response questions3

'$ Kuestions *ith ratin) s'ales to measure the intensit of attitudes and

d$ Open ended questions to +no* respondents feelin)s and a*areness,

The questions *ere as+ed to users in a dire't3 undis)uised form so as to a.oid 'onfusion

and to )et the best possible3 reliable honest ans*ers,

5a22i>i:ation and Ta3u5ation

The data used in the present stud ha.e been 'olle'ted throu)h a pre stru'tured

questionnaire, The data to be 'olle'ted *ere subsequentl 'lassified3 tabulated and

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interpreted, /ifferent 'lass inter.als *ere made for puttin) the information in different tables to

be used as the basis of analsis and interpretation, 6or the purpose of the analsis and

interpretation simple method of ran+in)3 per'enta)e and re)ression analsis ha.e been used,

Sam)5e Sie and Sam)5e De2ign

A sample is a part of the total population, %t 'an be an indi.idual element or a )roup of

elements sele'ted from the population, Althou)h it is a subset3 and representati.e of the

population3 it is ideal for resear'h in terms of 'ost3 'on.enien'e and time, -ample si;e of m

stud is 2 indi.idual 'ustomers of ban+s in shimla to*n *ere inter.ie*ed to 'olle't their

opinion on the need for finan'ial ser.i'es,

S:o)e o> t4e Stud*

The s'ope of m stud on 0Mar1eting 2trateg* ado)ted 3* !ariou2 3an12 in S4im5a.6 is

Onl 1imited to -B%3 P&B3 %C%C%3 H/6C and A>%- BA&F(LT%$ in -himla to*n,

9imitation o> t4e Stud*

To +no* the etent of reliabilit of the stud3 it is important to state the limitation under*hi'h it has been 'ondu'ted,

The main limitations of the present stud areJ

The stud has been 'ondu'ted *ith the help of primar data 'olle'ted throu)h samplin)

method, Therefore the results ma be affe'ted b the samplin) error,

%n'omplete and *ron) information and poor responses to some questions 'ould not be

a.oided,

6urthermore time and 'ost fa'tor did not permit to 'o.er all the aspe'ts of mar+etin)strate)ies of ban+s in detail,

%t is not possible to 'o.er all the aspe'ts of Ban+ ser.i'es and s'hemes,

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HATE III

ro>i5e o> Ban12

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18/81

Consolidatin) its )lobal treasur operations and enterin) into stru'tured produ'ts and

deri.ati.e instruments, Toda3 the Ban+ is the lar)est pro.ider of infrastru'ture debt and the

lar)est arran)er of eternal 'ommer'ial borro*in)s in the 'ountr, %t is the onl %ndian ban+ to

feature in the 6ortune


19/81

Ban+ of %ndia (-B%$ *as established on # ul #=


20/81

T4e eig4t 3an1ing 2u32idiarie2 are+

-tate Ban+ of Bi+aner and aipur (-BB$

-tate Ban+ of Hderabad (-BH$

-tate Ban+ of %ndia (-B%$

-tate Ban+ of %ndore (-B%R$

-tate Ban+ of Msore (-BM$

-tate Ban+ of Patiala (-BP$

-tate Ban+ of -aurashtra (-B-$

-tate Ban+ of Tra.an'ore (-BT$

rodu:t2 and Ser!i:e2

er2ona5 Ban1ing

-B% Term /eposits -B% 1oan 6or Pensioners

-B% Re'urrin) /eposits 1oan A)ainst Mort)a)e Of Propert

-B% Housin) 1oan 1oan A)ainst -hares /ebentures

-B% Car 1oan Rent Plus -'heme

-B% Edu'ational 1oan Medi"Plus -'heme

Ot4er Ser!i:e2

A)ri'ultureIRural Ban+in)

&R% -er.i'es

ATM -er.i'es

/emat -er.i'es

Corporate Ban+in)

%nternet Ban+in)

Mobile Ban+in)

Page 20


21/81

%nternational Ban+in)

-afe /eposit 1o'+er

RB%E6T

E"Pa

E"Rail

-B% 4ish*a @atra 6orei)n Tra.el Card

Bro+in) -er.i'es

Gift Cheques

The C&& %B&3 &et*or+ #! re'o)ni;ed this momentous transformation 5ourne3 the -tate

Ban+ of %ndia is underta+in)3 and has a*arded the presti)ious %ndian of the @ear N Business3to its Chairman3 Mr, O, P, Bhatt in anuar 2!,

In!e2tment

MLTLA1 6L&/ EKL%T@ -CHEME-

/ABT -CHEME-

BA1A&CE/ -CHEME-

E>CHA&GE TREA/E/ -CHEME-

1%6E %&-LRE&CE Lnit 1in+ed Produ'tsJ Pension Produ'tsJPure Prote'tionProdu'tsJProte'tion 'um -a.in)s Produ'tsJMone Ba'+

-'heme Produ'tsJ-B% 1ife " -ARA1 L1%P Prote'tion PlansJ-pe'iali;ed Term %nsuran'eJRetirement -olutionsJ -B% 1ife "

-*adhan (Group$J -B% 1ife " /hanara+sha PlusJ -B% 1ife "

Grameen -ha+ti3 Health Produ'tsJ

EKL%T@ A11 T@PE-

-B% Mutual 6und is %ndias lar)est ban+ sponsored mutual fund and has an en.iable

tra'+ re'ord in 5udi'ious in.estments and 'onsistent *ealth 'reation,The fund tra'es its linea)e

to -B% " %ndias lar)est ban+in) enterprise, The institution has )ro*n immensel sin'e its

in'eption and toda it is %ndias lar)est ban+3 patronised b o.er !Q of the top 'orporate

houses of the 'ountr,

-B% Mutual 6und is a 5oint .enture bet*een the -tate Ban+ of %ndia and -o'it

Gnrale Asset Mana)ement3 one of the *orlds leadin) fund mana)ement 'ompanies that

mana)es o.er L-S


22/81

Management

The ban+ has #: dire'tors on the Board and is responsible for the mana)ement of the

Ban+s business, The board in addition to monitorin) 'orporate performan'e also 'arries out

fun'tions su'h as appro.in) the business plan3 re.ie*in) and appro.in) the annual bud)ets andborro*in) limits and fiin) eposure limits, Mr, O, P, Bhatt is the Chairman of the ban+, The fi.e"

ear term of Mr, Bhatt *ill epire in Mar'h 2##, Prior to this appointment3 Mr, Bhatt *as Mana)in)

/ire'tor at -tate Ban+ of Tra.an'ore, Mr, Bhatt has more than 9 ears of eperien'e in the %ndian

ban+in) industr and is seen as futuristi' leader in his approa'h to*ards te'hnolo) and 'ustomer

ser.i'e, Mr, Bhatt has had the best of forei)n eposure in -B%, De belie.e that the appointment of

Mr, Bhatt *ould be a +e to -B%s future )ro*th momentum, Mr, T - Bhatta'hara is the Mana)in)

/ire'tor of the ban+ and +no*n for his .ast eperien'e in the ban+in) industr, Re'entl3 the senior

mana)ement of the ban+ has been broadened 'onsiderabl, The positions of C6O and the head of

treasur ha.e been se)re)ated3 and ne* heads for rural ban+in) and for 'orporate de.elopment

and ne* business ban+in) ha.e been appointed, The mana)ements thrust on )ro*th of the ban+in terms of net*or+ and si;e *ould also ensure en'oura)in) prospe'ts in time to 'ome,

III BANKIntrodu:tion o> III Ban1

%C%C% Group offers a *ide ran)e of ban+in) produ'ts and finan'ial ser.i'es to 'orporate and

retail 'ustomers throu)h a .ariet of deli.er 'hannels and throu)h its spe'ialised )roup 'ompanies3

subsidiaries and affiliates in the areas of personal ban+in)3 in.estment ban+in)3 life and )eneral

insuran'e3 .enture 'apital and asset mana)ement, Dith a stron) 'ustomer fo'us3 the %C%C% Group

Companies ha.e maintained and enhan'ed their leadership position in their respe'ti.e se'tors,

%C%C% Ban+ is %ndias se'ond"lar)est ban+ *ith total assets of Rs, 938=9,# billion (L-S 8 NB

Pun5ab &ational Ban+ of %ndia *as established b 1ala 1a5pat Rai in the pre"

independen'e %ndia in #!=< in Pun5ab3 *ith 1ahore as its head offi'e, Toda it is the se'ond

lar)est publi' se'tor ban+ in %ndia, %t *as nationali;ed in #=?= alon) *ith #9 other ma5or'ommer'ial ban+s, The pri.ati;ation started in #=!= *hen 9 per 'ent of its shares *ere

offered to the publi' and it *as listed on the sto'+ e'han)e,%n #==23 P&B be'ame the first

Philippine ban+ to rea'h P# billion in assets, 1ater that ear3 pri.ati;ation 'ontinued *ith a

se'ond publi' offerin) of its shares, %n Au)ust 2


30/81

NB )er>orman:e in 5a2t >i!e *ear2

#st Kuarter &et %n'ome LP :!Q @ear"on"@ear Ta+in)"off from a brea+throu)h

performan'e in 28 *ith a re)istered net in'ome of P#,< billion3 P&B 'ontinues to reap the

benefits from its efforts to stren)then 'ore businesses3 redu'e non"performin) assets and

mana)e 'osts, &et %n'ome for the #st Kuarter of 2! re)istered P:


31/81

/ue to its fa'ilities and ser.i'es of hi)h standards3 Pun5ab &ational Ban+ has also been

the re'ipient of a number of presti)ious a*ards, %t has been ad5usted as the 2:!th bi))est

ban+ a'ross the )lobe a''ordin) to a re'ent sur.e made b Ban+ers Almana' in 1ondon, The

E'onomi' Times has also listed the ban+ as 9!th amon) the premier


32/81

%n 'ase of the personal ban+in) se)ment3 the ban+ offers 'ustomi;ed solutions to ta+e

'are of almost all finan'ial needs of the 'ustomers, -ome of the *ell +no*n ser.i'es that are

offered in the ban+ areJ

-a.in)s 6und A''ount

6ied /eposit s'heme

Current a''ount

1oan ser.i'es

Pun5ab &ational Ban+ is also a *ell +no*n name in housin) loan benefits, The ban+

offers both short term and lon) term loans, The rates are also affordable and 'an be paid

*ithin a parti'ular time, The housin) loans are )i.en for a number of purposes su'h asJ

Constru'tion of a buildin)

Pur'hase of a ne* house or a flat

Pur'hase of flat or house on a 6irst Po*er of Attorne basis

6or the purpose of repair or reno.ation of a house or a buildin)

The P&B Housin) 6inan'e san'tions around !Q of the 'ost of the pro5e't, Ho*e.er3

the maimum amount is around Rs und2 o> unCa3 Nationa5 Ban1

The mutual funds of Pun5ab &ational Ban+ are 'o.ered under the Prin'ipal P&B Asset

Mana)ement Compan, -ome of the *ell +no*n s'hemes of mutual funds areJ

Prin'ipal Gro*th -'heme

Prin'ipal balan'ed 6und

Prin'ipal %n'ome 6und

Page 32


33/81

Prin'ipal )o.ernment -e'urities 6und

Prin'ipal %n'ome 6und N -hort Term /ebt

Prin'ipal Cash mana)ement 6und

Prin'ipal %nde 6und

unCa3 nationa5 3an1 4ome 5oan

unCa3 nationa5 3an1 IO

unCa3 Nationa5 Ban1 On5ine

unCa3 Nationa5 Ban1 2et2 a Mi5e2tone >or t4e Indian Ban1ing Indu2tr*

Ne; De54i7 /e3ruar* 7 %""? " Pun5ab &ational Ban+ (P&B$3 %ndias se'ond lar)est publi' se'tor ban+toda announ'ed that it has 'ompleted #Q 'ore ban+in) implementation at all its :?: bran'hes andetension 'ounters throu)h the 6ina'le Lni.ersal Ban+in) -olution from %nfoss3 on -un infrastru'tureand the Ora'le /atabase settin) a si)nifi'ant milestone for themsel.es and a ne* ben'hmar+ for the%ndian ban+in) industr,

Dith its pan %ndia presen'e3 P&B offers a *ide .ariet of ban+in) ser.i'es throu)h its :?: bran'hesin'ludin) 2:= etension 'ounters N the lar)est amon)st &ationali;ed Ban+s, Dith an in'reasin)ldnami' business and re)ulator en.ironment3 P&B sou)ht to not onl a'hie.e automation3 but also'entrali;e operations3 standardi;e bran'h pro'esses3 a'hie.e hi)h s'alabilit for future business

)ro*th3 pro.ide fleibilit of 'reatin) inno.ati.e ban+in) produ'ts to its lines of business3 and at thesame time3 redu'e o.erall 'osts,

The .isionar ;eal and the futuristi' .ie* of the Ban+s top mana)ement in the ear 2"2#in'ubated the idea of introdu'tion of a Centralised Ban+in) solution, The bold and inno.ati.e thou)ht'ulminated into the CB- ar'hite'ture *ith 6ina'le appli'ation on Ora'le /atabase and -un hard*areplatform *ith -olaris Operatin) -stem,

AIS BANKIntrodu:tion o> AIS BANK

Ais Ban+ *as the first of the ne* pri.ate ban+s to ha.e be)un operations in #==:3 after

the Go.ernment of %ndia allo*ed ne* pri.ate ban+s to be established, The Ban+ *as promoted

5ointl b the Administrator of the spe'ified underta+in) of the Lnit Trust of %ndia (LT% " %$3 1ife

%nsuran'e Corporation of %ndia (1%C$ and General %nsuran'e Corporation of %ndia (G%C$ and

Page 33


34/81

other four P-L insuran'e 'ompanies3 i,e, &ational %nsuran'e Compan 1td,3 The &e* %ndia

Assuran'e Compan 1td,3 The Oriental %nsuran'e Compan 1td, and Lnited %ndia %nsuran'e

Compan 1td,

The Ban+ toda is 'apitali;ed to the etent of Rs, 9


35/81

Mutual 6unds

Gold

-hare Tradin)

9oan2 and Borro;ing2

Car 6inan'e

Commer'ial 1oans

Home 1oans

Personal 1oans

1oans A)ainst Propert

A)ri'ulture 1oan

HD/ BANKPage 35


36/81

Introdu:tion o> HD/ BANK

H/6C Ban+ *as in'orporated in the ear of #==: b Housin) /e.elopment 6inan'e

Corporation 1imited (H/6C$3 %ndias premier housin) finan'e 'ompan, %t *as amon) the first

'ompanies to re'ei.e an in prin'iple appro.al from the Reser.e Ban+ of %ndia (RB%$ to set up

a ban+ in the pri.ate se'tor, The Ban+ 'ommen'ed its operations as a -'heduled Commer'ial

Ban+ in anuar #==< *ith the help of RB%s liberali;ation poli'ies,

%n a milestone transa'tion in the %ndian ban+in) industr3 Times Ban+ 1imited (promoted

b Bennett3 Coleman Co, I Times Group$ *as mer)ed *ith H/6C Ban+ 1td,3 in 2, This

*as the first mer)er of t*o pri.ate ban+s in %ndia, As per the s'heme of amal)amation

appro.ed b the shareholders of both ban+s and the Reser.e Ban+ of %ndia3 shareholders of

Times Ban+ re'ei.ed # share of H/6C Ban+ for e.er


37/81

etai5 Ban1ing Ser!i:e2

The ob5e'ti.e of the Retail Ban+ is to pro.ide its tar)et mar+et 'ustomers a full ran)e of

finan'ial produ'ts and ban+in) ser.i'es3 )i.in) the 'ustomer a one"stop *indo* for all hisIher

ban+in) requirements, The produ'ts are ba'+ed b *orld"'lass ser.i'e and deli.ered to'ustomers throu)h the )ro*in) bran'h net*or+3 as *ell as throu)h alternati.e deli.er

'hannels li+e ATMs3 Phone Ban+in)3 &etBan+in) and Mobile Ban+in),

H/6C Ban+ *as the first ban+ in %ndia to laun'h an %nternational /ebit Card in

asso'iation *ith 4%-A (4%-A Ele'tron$ and issues the Master'ard3 Maestro debit 'ard as *ell,

The Ban+ laun'hed its 'redit 'ard business in late 2#, B Mar'h 2=3 the ban+ had a total

'ard base (debit and 'redit 'ards$ of o.er #9 million, The Ban+ is also one of the leadin)

plaers in the Umer'hant a'quirin) business *ith o.er 83 Point"of"sale (PO-$ terminals for

debit I 'redit 'ards a''eptan'e at mer'hant establishments, The Ban+ is *ell positioned as a

leader in .arious net based B2C opportunities in'ludin) a *ide ran)e of internet ban+in)ser.i'es for 6ied /eposits3 1oans3 Bill Paments3 et',

Trea2ur*

Dithin this business3 the ban+ has three main produ't areas " 6orei)n E'han)e and

/eri.ati.es3 1o'al Curren' Mone Mar+et /ebt -e'urities3 and Equities, These ser.i'es are

pro.ided throu)h the ban+s Treasur team, To 'ompl *ith statutor reser.e requirements3

the ban+ is required to hold 2


38/81

Produ'ts of H/6C Ban+ are 'lassified into

i$ Personal ban+in)

ii$ Dholesale ban+in)3

iii$ &R% ban+in),

er2ona5 3an1ing+

Personal depositor ser.i'es of H/6C Ban+ 'omprise sa.in)s a''ounts3 'urrent

a''ounts3 term deposit a''ounts and demat a''ounts, 1oans offered b H/6C in'lude home

loans3 'ar loans3 tra'tor loans3 edu'ational loans3 )uaranteed loans3 and personal

loans, H/6C Ban+ offers insuran'e ser.i'es3 'redit 'ard and lo'+er fa'ilities to its personal

'ustomers,

84o5e2a5e 3an1ing+

Dholesale ban+in) fa'ilities offered b this ban+ in'lude bill dis'ountin)3 letter of 'redit3

ban+ )uarantees3 *or+in) 'apital finan'e and eport 'redit, Other *holesale ban+in)

ser.i'es in'lude pro5e't finan'in)3 asset mana)ement3 and sto'+ mar+et ser.i'es, 6inan'in) of

.arious pro5e'ts li+e 'onstru'tion equipment finan'in)3 'ommer'ial .ehi'le finan'in)3 medi'al

equipment finan'in) are pro.ided b H/6C Ban+,

NI Ban1ing+

6orei)n e'han)e transfers3 non"resident ordinar (&RO$ and non"resident eternal(&RE$ fied deposits3 and mutual funds are 'ertain non"resident %ndian (&R%$ ban+in)

ser.i'es pro.ided b H/6C Ban+,

/inan:ia52Asset *orth of H/6C Ban+3 as on Mar'h 2!3 *as around S2#,= billion, -ales in that

spe'ified time amounted to about S#,=? billion and profits *orth S,28 billion *ere )enerated,

A;ard2 and re:ognition

6e* of a*ards *on b H/6C Ban+ in 2! in'ludeJ

%t has been ad5ud)ed Best Ban+ of 2! b Business %ndia

%t has been a*arded Best Retail Ban+ 2! b Asian Ban+er E'ellen'e

Page 38


39/81

Mi'rosoft and %ndian Epress Group 'onferred -e'urit -trate)ist A*ard 2!

to H/6C Ban+

HATE IV

Page 39


40/81

Comparison of 8Ps -trate) ofthese Ban+s

OMAISON ON THE BANKS ON BASIS O/ @2

#, Comparison on the basis of ODUT

AIS BANK SBI BANK III BANK HD/ BANK NB

Page 40


41/81

Ban1ing and Sa!ing2+

Ban+in) andA''ounts

Con.enien'eBan+in)

Credit Cards

&R% -er.i'es

/emat

/eposits

or)orate andIn2titutiona5

Corporate6inan'e

Treasur

%n.estmentBan+in)

%nstitutionalBan+in)

In!e2tment2 andIn2uran:e

1ife %nsuran'e

Mutual 6unds

Gold

-hare Tradin)

9oan2 andBorro;ing2

Car 6inan'e


Ban+in) andA''ounts

Con.enien'eBan+in)

Credit Cards

&R% -er.i'es

/emat

/eposits

Mobile Ban+in)

E"Pa

E"Rail

Bro+in) -er.i'es

Gift Cheques

%nternet Ban+in)


CorporateBan+in)

Treasur

%n.estmentBan+in)

%nstitutionalBan+in)

%nternationalBan+in)


1ife %nsuran'e

Mutual 6unds

Health Produ'ts

Equit

9oan2 and


Ban+in) andA''ounts

Con.enien'eBan+in)

Credit Cards

Prepaid Cards

&R% -er.i'es

/emat

/eposits

6ied /eposit

A)ri RuralBan+in)

BusinessBan+in)

Pament-er.i'es


Corporate6inan'e

Treasur

%n.estment

Ban+in) %nstitutional

Equities


1ife %nsuran'e

General%nsuran'e

Tra.el %nsuran'e

Health %nsuran'e Hospital Care

Mutual 6unds

6ore -er.i'es

-e'urities

-hare Tradin)

Estate Plannin)


Ban+in) andA''ounts

Con.enien'eBan+in)

Credit Cards

Prepaid Cards

Pri.ate Ban+in)

%mperia Premium

Ban+in)

PreferredBan+in)

Classi' Ban+in)

/emat

/eposits

Pament-er.i'es


Corporate6inan'e

%n.estmentBan+in)

%nstitutionalEquities

Dor+in) Capital6inan'e


1ife %nsuran'e

General%nsuran'e

Health %nsuran'e

Hospital Care6inan'e

Mutual 6unds

6ore -er.i'es

-e'urities

-hare Tradin)

Estate Plannin)

Equities /eri.ati.es

Mudra Gold Bar


Ban+in) andA''ounts

Con.enien'eBan+in)

CorporateBan+in)

A)ri'ulturefinan'eser.i'es

PersonalBan+in)

Credit Cards

&R% -er.i'es

Online BillPament

%nternet Ban+in)

/emat

/eposits %nternational

ban+in)ser.i'es


CorporateBan+in)

-o'ial Ban+in)

%ndustrial finan'eser.i'es

Trade finan'ial

ser.i'es


Mutual 6unds

9oan2 and Borro;ing2 Car 6inan'e

Constru'tion of abuildin)

Pur'hase of ane* house or aflat

Pur'hase of flator house on a6irst Po*er of

Page 41


42/81

Commer'ial1oan

Home 1oan

Personal 1oan

1oan A)ainstPropert

A)ri'ulture 1oan

Borro;ing2

Car 6inan'e

Commer'ial1oan

Edu'ation 1oan

Home 1oan

Personal 1oan

1oan A)ainstPropert

A)ri'ulture 1oan

9oan2 andBorro;ing2

Car 6inan'e

Commer'ial1oan

Home 1oan

Personal 1oan

1oan A)ainstPropert

1oan A)ainst-e'urities

Trade -er.i'es

9oan2 andBorro;ing2

Car 6inan'e

Commer'ial

1oan

Home 1oan

Personal 1oan

Edu'ation 1oan

1oan A)ainstPropert

1oan A)ainst-e'urities

Attorne basis

6or the purposeof repair orreno.ation of ahouse or abuildin)

Personal 1oan

1oan A)ainstPropert

A)ri'ulture 1oan

2, Comparison on the basis of IE


The pri'in) de'isions or the de'isions related to interest and fee or 'ommission 'har)edb ban+s are found instrumental in moti.atin) or influen'in) the tar)et mar+et,

The RB% and the %BA are 'on'erned *ith re)ulations, The rate of interest is re)ulated bthe RB% and other 'har)es are 'ontrolled b %BA,

9, Comparison on the basis of 9AE

AIS BANK SBI BANK III BANK HD/ BANK NB!


43/81

Ad!erti2ing+

Tele.ision

Radio

Mo.ies

rint Media+ Hoardin)s

&e*spaper

Ma)a;ines

u35i:it*+

Campus 4isits

-ponsorship

Canopies

Sa5e2 romotion+

Gifts

er2ona5 Se55ing+

Cross"sale(-ellin) atCompetitorsPla'e$,

Personali;ed

-er.i'e,

Ad!erti2ing+

Tele.ision

Radio

Mo.ies


&e*spaper

Ma)a;ines

u35i:it*+

Campus 4isits

-ponsorship

Canopies

Sa5e2 romotion+

Gifts

er2ona5 Se55ing+


Personali;ed

-er.i'e,

Ad!erti2ing+

Tele.ision

Radio

Mo.ies


&e*spaper

Ma)a;ines

u35i:it*+

Campus 4isits

-ponsorship

Canopies

Sa5e2 romotion+

Gifts

er2ona5 Se55ing+


Personali;ed

-er.i'e,

Ad!erti2ing+

Tele.ision

Radio

Mo.ies


&e*spaper

Ma)a;ines

u35i:it*+

Campus 4isits

-ponsorship

Canopies

Sa5e2 romotion+

Gifts

er2ona5 Se55ing+


Personali;ed

-er.i'e,

Ad!erti2ing+

Tele.ision

Radio


&e*spaper

Ma)a;ines

u35i:it*+

Campus 4isits

Sa5e2 romotion+

Gifts

er2ona5 Se55ing+


Personali;ed

-er.i'e,


44/81

Standardiation+Ban+ has )ot standardi;ed pro'edures )ot tpi'al transa'tions, %n fa't not onl all thebran'hes of a sin)le"ban+3 but all the ban+s ha.e some standardi;ation in them, This is be'ause of the rules theare sub5e't to, Besides this3 ea'h of the ban+s has its standard forms3 do'umentations et', -tandardi;ationsa.es a lot of time behind indi.idual transa'tion,

u2tomiation+There are spe'ialt 'ounters at ea'h bran'h to deal *ith 'ustomers of a parti'ular s'heme,Besides this the 'ustomers 'an sele't their deposit period amon) the a.ailable alternati.es,

Num3er o> 2te)2+numbers of steps are usuall spe'ified and a spe'ifi' pattern is follo*ed to minimi;e timeta+en,

Sim)5i:it*+Ban+s .arious fun'tions are se)re)ated, -eparate 'ounters eist *ith 'lear indi'ation, Thus a'ustomer *antin) to deposit mone )oes to deposits 'ounter and does not min)le else*here, This ma+espro'edures not onl simple but 'onsume less time, Besides instru'tion boards in national boards in national andre)ional lan)ua)e help the 'ustomers further,

u2tomer in!o5!ement+ ATM does not in.ol.e an ban+ emploees, Besides3 durin) usual ban+transa'tions3 there is definite 'ustomer in.ol.ement at some or the other pla'e be'ause of the mone matters andsi)nature requires,

8, Comparison on the basis of HYSIA9 EVIDANE


%nternetIDebPa)es

Paper*or+

Bro'hures

6urnishin)s Business Cards

Buildin)

-i)na)e

6inan'ialReports

Tan)ibles

Pun'h 1ines

Emploees/ress Code

%nternetIDebPa)es

Paper*or+

Bro'hures


Buildin)

-i)na)e

6inan'ialReports

Tan)ibles

Pun'h 1ines

%nternetIDebPa)es

Paper*or+

Bro'hures


Buildin)

-i)na)e

6inan'ialReports

Tan)ibles

Pun'h 1ines

Emploees/ress Code

%nternetIDebPa)es

Paper*or+

Bro'hures


Buildin)

-i)na)e

6inan'ialReports

Tan)ibles

Pun'h 1ines

Emploees/ress Code

%nternetIDebPa)es

Paper*or+

Bro'hures


Buildin)

-i)na)e

6inan'ialReports

Tan)ibles

Pun'h 1ines

HATE V

Page 44


45/81

-DOT Analsis of the Ban+s

S8OT ANA9YSIS O/ SBI BANK

Page 45


46/81

Strengt42+

Brand name+ -B% Ban+ has earned a reputation in the mar+et o.er the period off time (Bein)

the oldest ban+ in %ndia tra'in) histor ba'+ to #!?$

Mar1et 9eader+ -B% is ran+ed at 9! in 2! 6ortune Global


47/81

/ela in te'hnolo) up )radation 'ould result in loss of mar+et shares,

O))ortunitie2+

Merger o> a22o:iate 3an12 ;it4 SBI+Mer)er of all the asso'iate ban+s (li+e -BH3

-BM3 et',$ into -B% *ill 'reate a me)a ban+ *hi'h streamlines operations and unlo'+s

.alue,

%n 2= -B% has ##3::! bran'hes and ?


48/81

orter2 >i!e >or:e2 t4eor*+

T4reat o> om)etitor2+

Top Performin) Publi' -e'tor Ban+

Andhra Ban+

Allahabad Ban+

Pun5ab &ational Ban+

/ena Ban+

4i5aa Ban+

Top Performin) Pri.ate -e'tor Ban+s

H/6C Ban+

%C%C% Ban+

A>%- Ban+

Fota+ Mahindra Ban+

Centurion Ban+ of Pun5ab

Top Performin) 6orei)n Ban+s

Citiban+

-tandard Chartered

H-BC Ban+

AB& AMRO Ban+

Ameri'an Epress

T4reat o> ne; entrant2+There ha.e been man ne* entrants in ban+in) se'tor li+e

@E- BA&F,

T4reat o> 2u32titute2J in.estors as a substitute 'an al*as in.est into the 'apital

mar+ets instead of depositin) in their 'apital in the ban+,

Bu*ing )o;er o> 2u))5ier2J 'han)in) poli'ies and )uidelines of RB%3 interest rates3

CRR and -1R maintained b the ban+s as per RB% norms,

Bu*ing )o;er o> :u2tomer2J 'han)in) s'enarios3 in'reasin) and de'reasin)

Page 48


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disposable in'omes3 other attra'ti.e options a.ailable to 'ustomers,

BG t4eor*+ :a24 :o;

There is a lot of )ro*th potential for the ban+in) industr be'ause of in'reasin) disposablein'ome of 'ustomers3 in'reasin) *or+in) 'lass3 more .olatilit in other mar+ets also in'reasin)

importan'e of sa.in)s and in this ban+in) industr -B% has sho*n a )ro*th rate of #9Q *ith a

2# Q in'rease in PAT standin) to ?2,# 'r, in the 6inan'ial @ear 2!"=, Hen'e it 'an be

'on'luded that -B% stands,

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S8OT ANA9YSIS O/ III BANK

Strengt4+

$ On5ine Ser!i:e2J %C%C% Ban+ pro.ides online ser.i'es of all its ban+in) fa'ilities, %t also

pro.ides /"Mart a''ount fa'ilities on"line3 so a person 'an a''ess his a''ount from an*here

he is,

W/"Mart is a demateriali;ed a''ount opened b a salaried person for pur'hase sale of shares

of different 'ompanies,X

% Ad!an:ed In>ra2tru:ture+ Bran'hes of %C%C% Ban+ are *ell equipped *ith ad.an'ed

te'hnolo) to pro.ide the 'ustomers *ith taster ban+in) ser.i'es, All the 'omputeri;ed

ma'hines are lo'ated in suitable manner are .er useful to the 'ustomers staff of theban+,

& /riend5* Sta>>J The staff of %C%C% Ban+ in all bran'hes is .er friendl help the 'ustomers

in all 'ases, The pro.ide faster ser.i'es alon) *ith bondin) personal relationship *ith the

'ustomers,

= $% 4r2. Ban1ing 2er!i:e2J Compared to other ban+ %C%C% ban+ pro.ides lon) hrs, of

ser.i'es i,e, !"! ser.i'es to the 'ustomers, This ser.i'e is one of its +ind is .er helpful for

the 'ustomers *ho are in ur)ent need of mone,

Ot4er /a:i5itie2 to t4e u2tomer2 F Em)5o*ee2 J %C%C% Ban+ also pro.ides other fa'ilitiesli+e drin+in) *ater fa'ilities3 proper sittin) arran)ements to the 'ustomers, And there are also

proper 4entilation sanitar fa'ilities for the emploees of the ban+,

' 9ate nig4t ATM 2er!i:e2J %C%C% ban+ pro.ides late ni)ht ATM ser.i'es to the 'ustomers,

The ATM 'enters of %C%C% ban+ *or+s e.en after ##Jpm, at ni)ht in 'ertain bran'hes,

8ea1ne22+

$ Hig4 Ban1 Ser!i:e 4arge2J %C%C% ban+ 'har)es hi)hl to 'ustomers for the ser.i'es

pro.ided b them *hen 'ompared to other ban+ that is *h it is onl in the rea'h of hi)her

'lass of so'iet,


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% 9e22 redit eriodJ %C%C% ban+ pro.ides 'redit fa'ilities but onl up to limited period, E.en

*hen the 'redit period is not o.er it sends reminder letters to the 'ustomers *hi'h ma

anno them,

OOTUNITIES+

$ Ban1 ,In2uran:e 2er!i:e2+The ban+ should also pro.ide insuran'e ser.i'es, That means

the ban+ 'an ha.e a tie"up *ith a insuran'e 'ompan, The ban+ *ill ad.ertise promote the

different poli'ies introdu'ed b the insuran'e 'ompan 'on.in'e their 'ustomers to bu

insuran'e poli'ies,

% In:rea2e in )er:entage o> eturn2 on in:rea2eJ The ban+ should pro.ide hi)her returns

on deposits in 'omparison of the present situation, This *ill also up to lar)e etent help theban+ earn profits popularit,

& e:ruit )ro>e22iona55* guided 2tudent2+Ban+ %nsuran'e is a spe'ial non"aid 'ourse

*here the students spe'iali;e in the fun'tionin) ser.i'es of the ban+ also are +no*led)e

about .arious ta poli'ies, The ban+ 'an re'ruit these students throu)h tie"ups *ith 'olle)es,

-u'h students *ill surel pro.e as an asset to the ban+,

= A22o:iate ;it4 2o:ia5 :au2e+The ban+ 'an also asso'iate itself *ith so'ial 'auses li+e

pro.idin) relief aid patients3 fundin) to*ards natural 'alamities, But this falls in the : thquadrant

so the ban+ should ne)le't it,

THEATS+

$ om)etition+ %C%C% Ban+ is fa'in) ti)ht 'ompetition lo'all as *ell as internationall, Ban+

li+e C%T% Ban+3 H-BC3 ABM3 -tandered Chartered3 H/6C also pro.ide equi.alent fa'ilities li+e

%C%C% do and also %C%C% do not ha.e 'onsisten' in its international operation,


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S8OT ANA9YSIS O/ AIS BANK

Strengt4+

Etremel Competiti.e And Profitable Ban+in) 6ran'hise

Ban+in) -er.i'es %n'lude Corporate Credit3 Retail Ban+in)3 Business Ban+in)3 Capital

Mar+ets3 Treasur And %nternational Ban+in),

-ound Te'hnolo)i'al Platform Dith Centrali;ed /atabase And Operations

etai5 Ban1ing-a.in)s Ban+ /eposits Gre* To Rs, 2


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O))ortunit*+

1ar)e retail and 'orporate mar+et

Dide s'ope in rural %ndia

Other A'ti.it (&on Ban+in) A'ti.it$

People are be'ome more ser.i'e oriented

T4reat+

Other better -a.in)3 in.estment option a.ailable (li+e %nsuran'e3 Mutulfund3 Real"estate3

Gold$

Go.ernment Rules And Re)ulation

4er hi)h 'ompetition *ith Pri.ate se'tor (%C%C% Ban+3 H/6C ban+$ or publi' se'tor

(BOB3 P&B$ Ban+,

Capital Mar+et slo*"do*n Risin) Rates

6uture Mar+et Trands,


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S8OT ANA9YSISO/ HD/ BANK

Strengt4+

Ri)ht strate) for the ri)ht produ'ts,

-uperior 'ustomer ser.i'e .s, 'ompetitors,

Great Brand %ma)e,

Produ'ts ha.e required a''reditation,

Hi)h de)ree of 'ustomer satisfa'tion,

Good pla'e to *or+

1o*er response time *ith effi'ient and effe'ti.e ser.i'e,

/edi'ated *or+for'e aimin) at ma+in) a lon)"term 'areer in the field,

8ea1ne22+

-ome )aps in ran)e for 'ertain se'tors,

Customer ser.i'e staff need trainin),

Pro'esses and sstems3 et', Mana)ement 'o.er insuffi'ient,

-e'toral )ro*th is 'onstrained b lo* unemploment le.els and 'ompetition for

staff,

O))ortunitie2+

Profit mar)ins *ill be )ood, Could etend to o.erseas broadl,

&e* spe'ialist appli'ations,

Could see+ better 'ustomer deals,

6ast"tra'+ 'areer de.elopment opportunities on an industr"*ide basis,

An applied resear'h 'enter to 'reate opportunities for de.elopin) te'hniques to

pro.ide added".alue ser.i'es,


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T4reat2+

1e)islation 'ould impa't,

Great ris+ in.ol.ed

4er hi)h 'ompetition pre.ailin) in the industr,

4ulnerable to rea'ti.e atta'+ b ma5or 'ompetitors,

1a'+ of infrastru'ture in rural areas 'ould 'onstrain in.estment,

Hi)h .olumeIlo* 'ost mar+et is intensel 'ompetiti.e,


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HATE VI

Analsis of the /ata


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4art %+-Total number of respondents di.ided on the basis of o''upation

Ana5*2i2+ -%t is seen that maimum number of respondents belon) to ser.i'e )roup and .er

less of them belon) to business and retired )roup,

er:entage o> e2)ondent2 ;it4 e>eren:e to In:ome Grou)

4art &+-Per'enta)e of Respondents *ith Referen'e to %n'ome Group

2


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Edu:ation and Se )ro>i5e o> u2tomer e2)ondent2

4art =+-Edu'ation and -e profile of Customer Respondents


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Out of the total respondent3 ?Q uses 'urrent a''ount,

Out of the total respondent3 98Q uses -alar a''ount,

Out of the total respondent3


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ea2on 84* t4e e2)ondent Go >or a arti:u5ar Ban1

4art #+-%n.estment reason for number of respondents

Out of total respondent :8 'hoose there ban+ be'ause of brand name,

#9 *ent on the basis of epe'ted returns,

# *as +een be'ause of re.ie*s in the ma)a;ine,

9 out of total be'ause of ris+ profile,


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on2ideration o> eo)5e >or Ha!ing an A::ount (Sa!ing7 Sa5ar*7 urrent7

Ot4er2 In An* o> t4e Ban1

4art ?+-Consideration for number of respondents

Out of the total respondent3 !Q had 'onsideration for buildin) home,

Out of the total respondent3 #9Q had 'onsideration for 'hild edu'ation,

Out of the total respondent3 #


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T*)e o> i21 Ta1er2 on Ba2i2 o> T4ere Age

4art $"7 $$+-Tpe of ris+ ta+er on the basis of a)e

Ana5*2i2+

Moderate ris+ ta+ers are ma, of a)e 2"93 from a)e of 9#"


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1o* ris+ ta+ers are also hi)hest at a)e of 2"9 and are almost 'onstant from a)e 9#"


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In!e2tment o)tion on t4e 3a2i2 o> age grou)

4art $&+-%n.estment option on the basis of a)e )roup

Ana5*2i2+

6or 1%C hi)hest no, of in.estors are of a)e )roup from 2"9 and .er less from a)e

)roup 9#":3 ;ero of rest of the a)e )roups,

6or -hares /ebentures maimum are of 9#": ears follo*ed b people from :#"


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Ban1 )re>eren:e on t4e 3a2i2 o> Age

4art $=+-Ban+ preferen'e on the basis of a)e

Ana5*2i2+

Ma, people of all a)e )roup )oes to*ards other ban+s3 mainl )o.ernment ban+s,Amon) that hi)hest is of 2"9 ears,

%C%C% ban+ is preferred more than H/6C Ban+ and Ais Ban+,

2"9 ears of a)e )roup people sho* more interest for -C ban+ than other a)e

)roups


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Sour:e o> In>ormation a3out Ser!i:e2

4art $+--our'e of %nformation about -er.i'es

The abo.e )raph states that 'ustomers 'ame to +no* about the ser.i'es from the follo*in)

sour'es of these ban+s,


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HATE VII

/inding27 e:ommendation2

and on:5u2ion


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/inding2

-um Of the respondents to 'hoose the -B% ban+ is be'ause the ban+ is pro.in) more

ATM fa'ilit to the 'ustomers,

And man of the respondents are sain) the reason to 'hoose the ser.i'es of the -B%

ban+ is be'ause the are )ood in effi'ient 'ustomer ser.i'e,

And the in'ome le.el of the most respondents *ho are ha.in) an a''ount in -B% ban+

fallin) under the in'ome le.el of Rs,


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%n -himla most of the 'ustomers de'ision is influen'ed b the friends and relati.es to

open an a''ount in a parti'ular ban+,

e:ommendation

-in'e man of the respondents are not a*are of there +e ser.i'es, The ban+ has to ta+e

some initiati.e,

The ban+ 'an post a list of ser.i'es that the are rendered to the 'ustomers inside the ban+

Premises,

And the 'an post demo of all these ser.i'es in their ban+ *ebsite,

The 'an 'on'entrate more on the respondents are fallin) under the a)e )roup 2< ears to

9< ears,

The -B% ban+ 'an 'on'entrate on 'ustomer 'omplaints handlin),

The %C%C% ban+ 'an 'on'entrate on the female )ender,

The ban+ 'an also send a post to there 'ustomers b informin) there ser.i'es and ho* to

pro'eed *ith that and all details the 'an mention it in the post,


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on:5u2ion

Ban+in) se'tor has under)one .arious 'han)es after the ne* e'onomi' poli' based on

pri.ati;ation3 )lobali;ation and liberali;ation adopted b )o.ernment of %ndia, %ntrodu'tion of

asset 'lassifi'ation and prudential a''ountin) norms3 dere)ulation of interest rate and openin)

up of the finan'ial se'tor made %ndian ban+in) se'tor 'ompetiti.e, En'oura)ement to forei)n

ban+s and pri.ate se'tor ban+s in'reased 'ompetition for all operators in ban+in) se'tor,

Ban+s in %ndia prior to adoption of ne* e'onomi' poli' *as prote'ted b )o.ernment and *as

ha.in) assured mar+et due to almost state monopol in ban+in) se'tor, Ho*e.er3 under the

ne* en.ironment3 %ndian ban+s needs to rein.ent the mar+etin) strate) for )ro*th, %n %ndia

)eo)raphi'al de.elopment is not e.en throu)hout the 'ountr3 there are full fled)ed urban

areas 'o.erin) the metropolitan 'ities and other bi) 'ities, On the other hand there are under

de.eloped rural areas too, 6or effe'ti.e ban+ mar+etin) different approa'h for different areas is

required, %n urban areas 'ustomer ser.i'es is of paramount importan'e as the le.el of litera'

and therefore a*areness of the people is more, Also te'hnolo) based mar+etin) *ould ha.e

hi)her de)ree of su''ess due to tpi'al urban life stle of the people, Lni.ersal ban+in)

pro.idin) all finan'ial ser.i'e under roof *ill ha.e more su''ess in urban areas,

All the ban+s are 'ompetin) equall *ith ea'h other,

But -B% ban+ is little bit belo* the line in 'ustomer 'omplaints handlin) *hen 'ompared

to %C%C% ban+,

The resear'h has pro.ed that -B% has better mar+etin) strate)ies as 'ompared to %C%C%3

A>%- Ban+3 H/6C and P&B in the 'it,

The resear'h has pro.ed that there is si)nifi'ant asso'iation bet*een ad.ertisin) media

used3 for promotional a'ti.ities b the Ban+s,

The resear'h has also pro.ed that there is asso'iation bet*een mar+etin) strate)ies

and brand a''eptan'e le.el of 'ustomers,

The 'ustomers of -B% are more in the 'it,


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Mar+etin) strate) adopted b the ban+s are same i,e,3 lo'al media3 maintainin) )ood

relation *ith 'ustomer,

%n the 'it -B% has 'ompetiti.e ed)e o.er the other ban+s due to better ser.i'e3 number

of bran'hes3 number of ATMs and ser.i'es on 'heap 'ost for the 'ustomers,

AENDIS


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MAKETING STATIGIES ADOTED BY

VAIOUS

BANKS IN SHIM9A

#, -e J Male 6emale

2, A)e J Belo* 9 9#": :#"


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@es &o

=, %f &o3 *hat tpe of produ'tsIser.i'es ou need from Ban+sY

#, 7777777777777

2, 7777777777777

9, 7777777777777

#,Dhile ma+in) in.estments in Ban+in) produ'tsIser.i'es *hat do ou loo+ forY

-afet 1iquidit

Returns Kualit of ser.i'e

Others (Please spe'if$ 77777777777777777777777,

##,Dh did ou 'hoose this Ban+ for the follo*in)Y

a,$ /eposits J

1o'ation %nterest rates

Con.enient Business Hours Emploee Beha.ior

6a'ilities Amenities Good ser.i'e

Other (Please spe'if$ 77777777777777777777777,

b,$ 1oans J

1o'ation 1o* Cost

Personal 'onta't *ith Offi'ial 1ess ri)idit

-e'urit norms Others (Please spe'if$ 77777777777,

',$ An'illar -er.i'es J


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1o'ation Par+in)

1o* 'har)es /eposit holder

Kui'+ ser.i'e Others (Please spe'if$ 7,,77777777777,

#2, /oes our Ban+ 'ondu't re)ular Customer meetsY @es &o

#9, /oes our Ban+ de.elop ne* produ'ts based on 'ustomer needsY

@es &o

#:, %f @es3 &ame fe* ne* produ'ts that ha.e been introdu'ed b our Ban+ in re'ent J

#, 7777777777777,,,,,,,,

2, 777777777777777

9, 777777777777777

#


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#!, /oes the Bran'h pro.ide the follo*in) fa'ilities to its 'ustomersY

-afe Custod of Arti'les @es &o

-afe /eposit 1o'+er @es &o

Remittan'e li+e //ITTIColle'tion @es &o

#=, Dhether inside the Ban+Ibran'h ou )et fa'ilities li+e J

Comfortable seatin) arran)ements @es &o

-in)le *indo* fa'ilit @es &o

Assistan'e throu)h UMa % help ou 'ounter @es &o

2, Ha.e ou a.ailed an loan from this ban+Y @es &o

2#, %f @es3 'omment on the follo*in) J

#, Timeliness of san'tion of loan J

1ess than # *ee+ # to 2 *ee+s

9 to : *ee+s Abo.e : *ee+s

2, Repament Period J Con.enient %n'on.enient

9, /o'umentation J -imple Comple

:, -e'urit aspe'ts J 6leible Ri)id

22, Ho* did ou 'ome to +no* of this Ban+ and its ser.i'esY

Other 'ustomers Ad.ertisements -o'ial fun'tions

Ban+ers .isits Publi'it materials Campai)ns

Others (Please spe'if$ 77777777777777777777777,

29, -in'e ho* lon) are ou ban+in) *ith this parti'ular Ban+ 777777777777


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2:, Ho* frequentl do ou .isit the bran'h 7777777777777777777,

2


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8e3 2ite2

***,e;inerti'les,'om

***,)oo)lesear'h,'om

***,iupindia,or)

***,ebs'ohostsear'h,'om

***,emeraldinsi)ht,'om

***,s'ribd,'om

***,pal)ra.e,'om

***,ban+in)indiaupdates,'om

***,rbi,)o.,in

***,hdf'ban+,'om

***,hindu,'om

***,*el'ome"nri,'om

***,sbi,'o,in
http://www.hdfcbank.com/http://www.hindu.com/http://www.hdfcbank.com/http://www.hindu.com/


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ideas,repe',or)

***,indiaonline,in

ans*ers,rupeetimes,'om

en,*i+ipedia,or) ***,)oo)le,'o,in

***,sbi)roup,'o,5p

***,i'i'iban+,'om

Boo12 and ourna52

Ban+in) -e'tor Reforms in %ndia " -ultan -in)h,

-er.i'es Mar+etin) " /r, -,M,ha,

Mar+etin) Resear'h UThe %C6A% Lni.ersit %C6A% Publi'ations,

-harath utur3 A Ra.i Babu3 A Redd3 6ero; aheer and -hishir Fumar (2%3 The %C6A%

Lni.ersit Press,

%ndu Prasad3 Fa.itha Putta3 -an5o /e and Madhuparna Cha+rabort (2?$, %&/%A&

BA&F%&G 2


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Marketing strategies adopted by various Banks in Shimla

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Transcript of Marketing strategies adopted by various Banks in Shimla