Marketing Strategies Adopted by Various Banks in Shimla

A THESIS ON
Marketing strategies adopted by various Banks in Shimla.
SUBMITTED TO- Mr. Vinod Negi (THESIS GUIDE
SUBMITTED BY- Amit
Kumar
Uni!. ID. - "#"$%$$&"' MBA (%""#-%"$"
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MANAGEMEN THESIS
ON Marketing strategies adopted by various Banks in Shimla. (re)ared B*+ Amit Kumar MBA (%""# , %"$"
A report submitted in partial fulfillment of the requirements of
THE MBA PROGRAM (The Class of 2 !"2 # $ %&C
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-E.TI/I-ATE
This is to 'ertif( that Mana)ement Thesis titled 0Mar1eting 2trategie2 ado)ted 3* !ariou2 Ban12 in S4im5a.6 submitted b( Amit Kumar7 Uni!. ID. - "#"$%$$&"' durin) semester IIIrd 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
+ + +
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/ATE0000000000000000000
P1ACE00000000000000000000
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A-KNO89EDGMENT
% *ould li+e to e2press 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 e2traordinar( e2perien'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 *a(s, % am indebted to his more than he +no*s,
% )ratefull( a'+no*led)e Mr, Pa(re 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 e2perts *ho are m( friends 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 e2emplar(, 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 trul(3 the result of His,
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TAB9E O/ -ONTENTS
A:1no;5edgment2<<<<<<<<<<<<<<<<<.<<<<.................................=
$.
Introdu:tion
'
%ntrodu'tion 777777777777777777777777777,,8 Mar+etin) in Ban+in) -e'tor77777777777777777777,,8 -i)nifi'an'e of the stud(7777777777777777777777,! %. .e!ie; o> 5iterature and .e2ear:4 Met4odo5og* ? Re.ie* literature7777777777777777777777777777# Resear'h Methodolo)(7777777777777777777777777,#2 -tatement of the Problem777777777777777777777,#2 Rational behind the stud(777777777777777777777,#9 Ob5e'ti.e of the stud(77777777777777777777777#9 Resear'h /esi)n7777777777777777777777777#: -ample -i;e and -ample /esi)n777777777777777777#< -'ope of the -tud(777777777777777777777777,#< 1imitation of the -tud(7777777777777777777777,,,#< (ro>i5e o> t4e Ban12 $' -tate Ban+ of %ndia777777777777777777777777,#8 %C%C% Ban+777777777777777777777777777,,,,22 Pun5ab &ational Ban+777777777777777777777772= A>%- Ban+777777777777777777777777777799 H/6C Ban+777777777777777777777777777,,9< -om)ari2on o> @(A2 Strateg* o> t4e2e Ban12 &? S8OT Ana5*2i2 o> t4e Ban12 == Ana5*2i2 o> t4e Data BB /inding27 .e:ommendation2 and -on:5u2ion '# 6indin)s77777777777777777777777777777777?= Re'ommendations777777777777777777777777777,,8 Con'lusion77777777777777777777777777777778#
&.
=. B. '. @.
APPE&/%C-777777777777777777777777777777777777,,82 B%B1%OGRAPH@7777777777777777777777777777777777,,,8?
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-HA(TE. I
Introdu:tion
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INT.ODU-TION
Ban+in) in toda(As 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, Pa(in) (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 pa(in) 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( *ere en)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 bu(er, Before the mid"#=< s3 ban+ers had little understandin) or re)ard for mar+etin), Ban+s *ere suppl(in) needed ser.i'es, Ban+ers did not ha.e to ma+e a 'ase for 'he'+in) a''ounts3 sa.in)s3 loans3 or safe deposit Bo2es, The Ban+ buildin)s *ere 'reated in the ima)e of a Gree+ temple3 'al'ulated to impress the publi' *ith the ban+ s importan'e and solidit(, The %nterior *as austere3 and the tellers3 rarel( smiled, Mar+etin) 'ame into ban+s in the late #=< s3 not in the form of the Bmar+etin) 'on'eptC but in the form of the Bad.ertisin) and promotion 'on'eptC, Ban+s and other finan'ial institutions *ere e2perien'in) in'reased 'ompetition for sa.in)s, %n %ndia3 ban+s started inte)ratin) 'omponents of mar+etin) into its operation sin'e #=< s *hen it introdu'tion itself to its 'ustomers throu)h ad.ertisement, Mar+et de.elopment and mar+et penetration *ere the fo'us in #=8 s *hen ban+s e2panded their area of operation
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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 e2plorin) 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 e2pe'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 e2istin) *a(s 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 e2istin) mar+etin) te'hniques is e2pe'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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-HA(TE. 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 anal(sis 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 anal(sis illustrates that the blend of .arious .ariables in the ser.i'es mar+etin) mi2 (ie pri'e3 pla'e3 promotion3 parti'ipants3 ph(si'al e.iden'e3 and pro'ess$ 'an help in attainin) 'ustomer satisfa'tion, Su)ri*a Sing4 ( %""= " This paper e2amines the mismat'h bet*een the impersonalit( of ele'troni' mone( on the one hand and Australian 'ustomersA desire to ha.e a personal ban+in) relationship on the other, This )ap is illustrated b( a 'riti'al appraisal of literature relatin) to the so'iolo)( of mone(3 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 pa(ment a'ti.ities3 ser.i'es3 and .alues relatin) to mone( *ithin different 'ultural 'onte2ts, The strate)( has mana)erial impli'ations for3 *hen pa(ments 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 and finan'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) mi2 .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 abilit( of %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 ma2imi;e and limit the e2pe'ted opportunities and threats respe'ti.el(,
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A. Karunagaran (%""B " This paper attempts to e2plore the s'ope for ban'assuran'e models as feasible sour'e of sustainable in'ome to ban+in) se'tor b( e2ploitin) the s(ner)( in the 'onte2t 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 e2'eption in future in %ndia and it *ould be a E*in"*in situationA 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) mi23 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, Another important 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) mi2, 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 'omple2,
-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 t(pes, /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 e2ists in the field of retail produ'ts, %n this 'onte2t3 the paper anal(ses mar+et a''ess strate)ies of European ban+s, The anal(sis 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 e2plored to *hi'h e2tent 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 most important 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 ta2 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*a(s re)arded as the Gmirror of the futureG for China3 the authors use Hon) Fon) as an e2ample 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 satisf(in) '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 'onte2t it *ould be hi)hl( re*ardin) to e2amine as to *hat e2tent %ndian ban+s ha.e been su''essful in meetin) the need of 'ustomers, More spe'ifi'all(3 the attention )i.en to produ't de.elopment3 pro.ision of fa'ilities and amenities3 internal mar+etin) and .arious promotional strate)ies need in"depth anal(sis, 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;ationAs 'ustomer needs and *ants and determines *hi'h tar)et mar+ets a 'ompan( 'an ser.e and ho* best to do soH 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)H it 'onsiders ho* to underta+e strate)i' mar+et plannin) and de.elop 'ore strate)(H to define and se)ment mar+et3 build relationships throu)h 'ustomer satisfa'tion3 qualit(3 .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 qualit(3 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 must to 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 ma2imi;e their business profit,
O3Ce:ti!e o> Stud*

The follo*in) are the ob5e'ti.es of the stud(J #$ To e2amine 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+,
Page 13
.e2ear:4 De2ign
%n pursuan'e of the ob5e'ti.es and h(potheses3 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 in t*o sta)es, %n the first eD)5orati!e 2tage of this stud(3 a re.ie* of literature *as underta+en to familiari;e the resear'her *ith .arious aspe'ts of the stud(3 to e.ol.e appropriate methodolo)( and to formulate a 'on'eptual frame*or+ for the stud(, 4arious resear'h 5ournal3 published in %ndia *ere perused at librar( in %C6A% &ational Colle)e3 -himla and -tate librar(3 -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 Anal(st$ 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 /ina5iEing Inter!ie; S:4edu5e The %nter.ie* -'hedule drafted for Customers *ere first tested b( 'ondu'tin) a pilot stud(, 6or the purpose of the pilot stud(3 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$ b$ '$ d$ Close ended t(pes *ith di'hotomous options3 Multiple response questions3 Kuestions *ith ratin) s'ales to measure the intensit( of attitudes and Open ended questions to +no* respondentAs 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
Page 14
interpreted, /ifferent 'lass inter.als *ere made for puttin) the information in different tables to be used as the basis of anal(sis and interpretation, 6or the purpose of the anal(sis and interpretation simple method of ran+in)3 per'enta)e and re)ression anal(sis ha.e been used,
Sam)5e SiEe 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 e2tent of reliabilit( of the stud(3 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, 6urthermoreH 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,
Page 15
-HA(TE. III
(ro>i5e o> Ban12
Page 16
State Ban1 o> India

Introdu:tion o> SBI
The ori)in of the State Ban1 o> India )oes ba'+ to the first de'ade of the nineteenth 'entur( *ith the establishment of the Ban+ of Cal'utta in Cal'utta on 2 Mune #! ?, Three (ears later the ban+ re'ei.ed its 'harter and *as re"desi)ned as the Ban+ of Ben)al (2 Manuar( #! =$, A unique institution3 it *as the first 5oint"sto'+ ban+ of British %ndia sponsored b( the Go.ernment of Ben)al, The Ban+ of Bomba( (#< April #!: $ and the Ban+ of Madras (# Mul( #!:9$ follo*ed the Ban+ of Ben)al, These three ban+s remained at the ape2 of modern ban+in) in %ndia till their amal)amation as the %mperial Ban+ of %ndia on 28 Manuar( #=2#, Primaril( An)lo"%ndian 'reations3 the three presiden'( ban+s 'ame into e2isten'e either as a result of the 'ompulsions of imperial finan'e or b( the felt needs of lo'al European 'ommer'e and *ere not imposed from outside in an arbitrar( manner to moderni;e %ndiaGs e'onom(, Their e.olution *as3 ho*e.er3 shaped b( ideas 'ulled from similar de.elopments in Europe and En)land3 and *as influen'ed b( 'han)es o''urrin) in the stru'ture of both the lo'al tradin) en.ironment and those in the relations of the %ndian e'onom( to the e'onom( of Europe and the )lobal e'onomi' frame*or+, The -tate Ban+ of %ndia3 the 'ountr(As oldest Ban+ and a premier in terms of balan'e sheet si;e3 number of bran'hes3 mar+et 'apitali;ation and profits is toda( )oin) throu)h a momentous phase of Chan)e and Transformation N the t*o hundred (ear old Publi' se'tor behemoth is toda( stirrin) out of its Publi' -e'tor le)a'( and mo.in) *ith an a)ilit( to )i.e the Pri.ate and 6orei)n Ban+s a run for their mone(, The ban+ is enterin) into man( ne* businesses *ith strate)i' tie ups N Pension 6unds3 General %nsuran'e3 Custodial -er.i'es3 Pri.ate Equit(3 Mobile Ban+in)3 Point of -ale Mer'hant A'quisition3 Ad.isor( -er.i'es3 stru'tured produ'ts et' N ea'h one of these initiati.es ha.in) a hu)e potential for )ro*th, The Ban+ is for)in) ahead *ith 'uttin) ed)e te'hnolo)( and inno.ati.e ne* ban+in) models3 to e2pand its Rural Ban+in) base3 loo+in) at the .ast untapped potential in the hinterland and proposes to 'o.er # 3 .illa)es in the ne2t t*o (ears,
Page 17
Consolidatin) its )lobal treasur( operations and enterin) into stru'tured produ'ts and deri.ati.e instruments, Toda(3 the Ban+ is the lar)est pro.ider of infrastru'ture debt and the lar)est arran)er of e2ternal 'ommer'ial borro*in)s in the 'ountr(, %t is the onl( %ndian ban+ to feature in the 6ortune < list, The Ban+ is 'han)in) outdated front and ba'+ end pro'esses to modern 'ustomer friendl( pro'esses to help impro.e the total 'ustomer e2perien'e, Dith about !< of its o*n # bran'hes and another <# bran'hes of its Asso'iate Ban+s alread( net*or+ed3 toda( it offers the lar)est ban+in) net*or+ to the %ndian 'ustomer, The Ban+ is also in the pro'ess of pro.idin) 'omplete pa(ment solution to its 'lientele *ith its o.er !< ATMs3 and other ele'troni' 'hannels su'h as %nternet ban+in)3 debit 'ards3 mobile ban+in)3 et',Dith four national le.el Ape2 Trainin) Colle)es and <: learnin) Centres spread all o.er the 'ountr( the Ban+ is 'ontinuousl( en)a)ed in s+ill enhan'ement of its emplo(ees, -ome of the trainin) pro)rames are attended b( ban+ers from ban+s in other 'ountries, The ban+ is also loo+in) at opportunities to )ro* in si;e in %ndia as *ell as %nternationall(, %t presentl( has !2 forei)n offi'es in 92 'ountries a'ross the )lobe, %t has also 8 -ubsidiaries in %ndia N SBI -a)ita5 Mar1et27 SBI-A( Se:uritie27 SBI D/HI7 SBI /a:tor27 SBI 9i>e and SBI -ard2 " formin) a formidable )roup in the %ndian Ban+in) s'enario, %t is in the pro'ess of raisin) 'apital for its )ro*th and also 'onsolidatin) its .arious holdin)s, Throu)hout all this 'han)e3 the Ban+ is also attemptin) to 'han)e old mindsets3 attitudes and ta+e all emplo(ees to)ether on this e2'itin) road to Transformation, %n a re'entl( 'on'luded mass internal 'ommuni'ation pro)ramme termed EPari.artanA the Ban+ rolled out o.er 99 t*o da( *or+shops a'ross the 'ountr( and 'o.ered o.er #9 3 emplo(ees in a period of # da(s usin) about : Trainers3 to dri.e home the messa)e of Chan)e and in'lusi.eness, The *or+shops fired the ima)ination of the emplo(ees *ith some other ban+s in %ndia as *ell as other Publi' -e'tor Or)ani;ations see+in) to emulate the Pro)ram, An important turnin) point in the histor( of -tate Ban+ of %ndia is the laun'h of the first 6i.e @ear Plan of independent %ndia3 in #=<#, The Plan aimed at ser.in) the %ndian e'onom( in )eneral and the rural se'tor of the 'ountr(3 in parti'ular, Lntil the Plan3 the 'ommer'ial ban+s of the 'ountr(3 in'ludin) the %mperial Ban+ of %ndia3 'onfined their ser.i'es to the urban se'tor, Moreo.er3 the( *ere not equipped to respond to the )ro*in) needs of the e'onomi' re.i.al ta+in) shape in the rural areas of the 'ountr(, Therefore3 in order to ser.e the e'onom( as a *hole and rural se'tor in parti'ular3 the All %ndia Rural Credit -ur.e( Committee re'ommended the formation of a state"partnered and state sponsored ban+, The All %ndia Rural Credit -ur.e( Committee proposed the ta+e o.er of the %mperial Ban+ of %ndia3 and inte)ratin) *ith it3 the former state"o*ned or state"asso'iate ban+s, -ubsequentl(3 an A't *as passed in the Parliament of %ndia in Ma( #=<<, As a result3 the -tate
Page 18
Ban+ of %ndia (-B%$ *as established on # Mul( #=<<, This resulted in ma+in) the -tate Ban+ of %ndia more po*erful3 be'ause as mu'h as a quarter of the resour'es of the %ndian ban+in) s(stem *ere 'ontrolled dire'tl( b( the -tate, 1ater on3 the -tate Ban+ of %ndia (-ubsidiar( Ban+s$ A't *as passed in #=<=, The A't enabled the -tate Ban+ of %ndia to ma+e the ei)ht former -tate"asso'iated ban+s as its subsidiaries, The -tate Ban+ of %ndia emer)ed as a pa'esetter3 *ith its operations 'arried out b( the :! offi'es 'omprisin) bran'hes3 sub offi'es and three 1o'al Head Offi'es3 inherited from the %mperial Ban+, %nstead of ser.in) as mere repositories of the 'ommunit(Gs sa.in)s and lendin) to 'redit*orth( parties3 the -tate Ban+ of %ndia 'atered to the needs of the 'ustomers3 b( ban+in) purposefull(, The ban+ ser.ed the hetero)eneous finan'ial needs of the planned e'onomi' de.elopment,
Bran:4e2
The 'orporate 'enter of -B% is lo'ated in Mumbai, %n order to 'ater to different fun'tions3 there are se.eral other establishments in and outside Mumbai3 apart from the 'orporate 'enter, The ban+ boasts of ha.in) as man( as #: lo'al head offi'es and <8 Oonal Offi'es3 lo'ated at ma5or 'ities throu)hout %ndia, %t is re'orded that -B% has about # bran'hes3 *ell net*or+ed to 'ater to its 'ustomers throu)hout %ndia,
ATM Ser!i:e2
-B% pro.ides eas( a''ess to mone( to its 'ustomers throu)h more than !< ATMs in %ndia, The Ban+ also fa'ilitates the free transa'tion of mone( at the ATMs of -tate Ban+ Group3 *hi'h in'ludes the ATMs of -tate Ban+ of %ndia as *ell as the Asso'iate Ban+s N -tate Ban+ of Bi+aner P Maipur3 -tate Ban+ of H(derabad3 -tate Ban+ of %ndore3 et', @ou ma( also transa't mone( throu)h -B% Commer'ial and %nternational Ban+ 1td b( usin) the -tate Ban+ ATM"'um"/ebit (Cash Plus$ 'ard,
Su32idiarie2
The -tate Ban+ Group in'ludes a net*or+ of ei)ht ban+in) subsidiaries and se.eral non"ban+in) subsidiaries, Throu)h the establishments3 it offers .arious ser.i'es in'ludin) mer'hant ban+in) ser.i'es3 fund mana)ement3 fa'torin) ser.i'es3 primar( dealership in )o.ernment se'urities3 'redit 'ards and insuran'e,
Page 19
T4e eig4t 3an1ing 2u32idiarie2 are+

-tate Ban+ of Bi+aner and Maipur (-BBM$ -tate Ban+ of H(derabad (-BH$ -tate Ban+ of %ndia (-B%$ -tate Ban+ of %ndore (-B%R$ -tate Ban+ of M(sore (-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 P /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
%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 5ourne(3 the -tate Ban+ of %ndia is underta+in)3 and has a*arded the presti)ious %ndian of the @ear N Business3 to its Chairman3 Mr, O, P, Bhatt in Manuar( 2 !,
In!e2tment
MLTLA1 6L&/ EKL%T@ -CHEME/ABT -CHEMEBA1A&CE/ -CHEMEE>CHA&GE TREA/E/ -CHEME-
1%6E %&-LRE&CE
Lnit 1in+ed Produ'tsJ Pension Produ'tsJPure Prote'tion Produ'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 %ndiaAs 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% " %ndiaAs lar)est ban+in) enterprise, The institution has )ro*n immensel( sin'e its in'eption and toda( it is %ndiaGs 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'iRtR GRnRrale Asset Mana)ement3 one of the *orldAs leadin) fund mana)ement 'ompanies that mana)es o.er L-S < Billion *orld*ide,
Page 21
Management
The ban+ has #: dire'tors on the Board and is responsible for the mana)ement of the Ban+As 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 and borro*in) limits and fi2in) e2posure limits, Mr, O, P, Bhatt is the Chairman of the ban+, The fi.e" (ear term of Mr, Bhatt *ill e2pire 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 e2perien'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 e2posure in -B%, De belie.e that the appointment of Mr, Bhatt *ould be a +e( to -B%As future )ro*th momentum, Mr, T - Bhatta'har(a is the Mana)in) /ire'tor of the ban+ and +no*n for his .ast e2perien'e in the ban+in) industr(, Re'entl(3 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)ementAs 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,
I-I-I BANK
Introdu:tion o> I-I-I 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 %ndiaGs se'ond"lar)est ban+ *ith total assets of Rs, 938=9, # billion (L-S 8< billion$ at Mar'h 9#3 2 = and profit after ta2 Rs, 98,<! billion for the (ear ended Mar'h 9#3 2 =, The Ban+ has a net*or+ of #3:<# bran'hes and about :382# ATMs in %ndia and presen'e in #! 'ountries,
Hi2tor*
$?BB+ The %ndustrial Credit and %n.estment Corporation of %ndia 1imited (%C%C%$ in'orporated at the initiati.e of the Dorld Ban+3 the Go.ernment of %ndia and representati.es of %ndian industr(3 *ith the ob5e'ti.e of 'reatin) a de.elopment finan'ial institution for pro.idin) medium" term and lon)"term pro5e't finan'in) to %ndian businesses, Mr,A,Ramas*ami Mudaliar ele'ted
Page 22
as the first Chairman of %C%C% 1imited, %C%C% emer)es as the ma5or sour'e of forei)n 'urren'( loans to %ndian industr(, Besides fundin) from the Dorld Ban+ and other multi"lateral a)en'ies3 %C%C% *as also amon) the first %ndian 'ompanies to raise funds from international mar+ets, $?B'+ %C%C% de'lared its first di.idend of 9,<Q $?'$+ The first Dest German loan of /M < million from Fredianstalt obtained $?'@+ %C%C% made its first debenture issue for Rs,? 'rore3 *hi'h *as o.ersubs'ribed $?@%+ The se'ond entit( in %ndia to set up mer'hant ban+in) ser.i'es $?@@+ %C%C% sponsored the formation of Housin) /e.elopment 6inan'e Corporation, Mana)ed its first equit( publi' issue $?#'+ %C%C% be'ame the first %ndian institution to re'ei.e A/B 1oans,%C%C%3 alon) *ith LT%3 set up Credit Ratin) %nformation -er.i'es of %ndia 1imited3 %ndiaGs first professional 'redit ratin) a)en'(,%C%C% promotes -hippin) Credit and %n.estment Compan( of %ndia 1imited . $??&+ Promoted T/%C% " %ndiaGs first .enture 'apital 'ompan( $??=+ %C%C% -e'urities and 6inan'e Compan( 1imited in 5oint .enture *ith M, P, Mor)an set up $??'+ %C%C% Asset Mana)ement Compan( set up, %C%C% Ban+ set up, %C%C% 1td be'ame the first 'ompan( in the %ndian finan'ial se'tor to raise G/R, %"""+ %C%C% laun'hed retail finan'e " 'ar loans3 house loans and loans for 'onsumer durables, %C%C% be'omes the first %ndian Compan( to list on the &@-E throu)h an issue of Ameri'an /epositar( -hares %""$+ %C%C% Ban+ be'ame the first 'ommer'ial ban+ from %ndia to list its sto'+ on &@-E, %C%C% Ban+ announ'es mer)er *ith Ban+ of Madura, The Boards of %C%C% 1td and %C%C% Ban+ appro.ed the mer)er of %C%C% *ith %C%C% Ban+, %""%+ %C%C% 1td mer)ed *ith %C%C% Ban+ 1td to 'reate %ndiaGs se'ond lar)est ban+ in terms of assets, %C%C% assi)ned hi)her than so.erei)n ratin) b( Mood(Gs, %C%C% Ban+ laun'hed %ndiaGs first C/O (Collateralised /ebt Obli)ation$ 6und named %ndian Corporate Collateralised /ebt Obli)ation 6und (%CC/O 6und$,
Page 23
BE 1obb(B3 a self"ser.i'e ban+in) 'entre inau)urated in Pune, %t *as the first of its +ind in %ndia,%C%C% Ban+ laun'hed Pri.ate Ban+in), ## "seat Call Centre set up in H(derabad
%C%C% Ban+ Home -hoppe3 the first"e.er permanent a))re)ation and displa( of housin) pro5e'ts in the 'ount(3 laun'hed in Pune3 ATM"on"Dheels3 %ndiaGs first mobile ATM3 laun'hed in Mumbai,
%""&+ The first %nte)rated Curren'( Mana)ement Centre laun'hed in Pune, %C%C% Ban+ announ'ed the settin) up of its first e.er offshore bran'h in -in)apore, The first offshore ban+in) unit (OBL$ at -eep; -pe'ial E'onomi' Oone3 Mumbai3 laun'hed, %C%C% Ban+Gs representati.e offi'e inau)urated in /ubai, Representati.e offi'e set up in China, %C%C% Ban+Gs LF subsidiar( laun'hed, %ndiaGs first e.er B4isa Mini Credit CardB3 a :9Q smaller 'redit 'ard in dimensions laun'hed, %C%C% Ban+ subsidiar( set up in Canada, Temase+ Holdin)s a'quired <,2Q sta+e in %C%C% Ban+, %C%C% Ban+ be'ame the mar+et leader in retail 'redit in %ndia, %""B+ %C%C% Ban+ and C&BC T4 #! announ'ed %ndiaGs first e.er a*ards re'o)nisin) the a'hie.ements of -MEs3 a pioneerin) initiati.e to en'oura)e the 'ontribution of -mall and Medium Enterprises to the )ro*th of %ndian e'onom( %C%C% Ban+ opened its < th bran'h in %ndia,
%C%C% Ban+ introdu'ed partnership model *herein %C%C% Ban+ *ould for)e an allian'e *ith
Page 24
e2istin) mi'ro finan'e institutions (M6%s$, The M6% *ould underta+e the promotional role of identif(in)3 trainin) and promotin) the mi'ro"finan'e 'lients and %C%C% Ban+ *ould finan'e the 'lients dire'tl( on the re'ommendation of the M6%, %C%C% Ban+ introdu'ed !"! Ban+in) *herein all the bran'hes of the Ban+ *ould remain open from !a,m, to ! p,m, from Monda( to -aturda(, %C%C% Ban+ introdu'ed the 'on'ept of floatin) rate for home loans in %ndia, 6irst rural bran'h and ATM laun'hed in Lttar Pradesh at /elpandar*a3 Hardoi, B6ree for 1ifeB 'redit 'ards laun'hed *herein annual fees of all %C%C% Ban+ Credit Cards *ere *ai.ed off, %C%C% Ban+ and 4isa 5ointl( laun'hed mChq N a re.olutionar( 'redit 'ard on the mobile phone, Pri.ate Ban+in) Masters 2 <3 a nation*ide Golf tournament for hi)h net*orth 'lients of the pri.ate ban+in) di.ision laun'hed, This e.ent is the lar)est domesti' in.itation amateur )olf e.ent 'ondu'ted in %ndia, 6irst %ndian 'ompan( to ma+e a simultaneous equit( offerin) of S#,! billion in %ndia3 the Lnited -tates and Mapan, A'quired %.estitsionno Freditn( Ban+ of Russia, %C%C% Ban+ be'ame the lar)est ban+ in %ndia in terms of its mar+et 'apitalisation %""@+ %ntrodu'ed a ne* produ't " G&R% smart sa.e /epositsG N a unique fi2ed deposit s'heme for nonresident %ndians, Representati.e offi'es opened in Thailand3 %ndonesia and Mala(sia, %C%C% Ban+ be'ame the lar)est retail pla(er in the mar+et to introdu'e a biometri' enabled smart 'ard that allo* ban+in) transa'tions to be 'ondu'ted on the field, A lo*"'ost solution3 this be'ame an effe'ti.e deli.er( option for %C%C% Ban+Gs mi'ro finan'e institution partners, 6inan'ial 'ounselin) 'entre /isha laun'hed, /isha pro.ides free 'redit 'ounselin)3 finan'ial plannin) and debt mana)ement ser.i'es, Bhoomi pu5a 'ondu'ted for a re)ional hub in H(derabad3 Andhra Pradesh,
Page 25
%C%C% Ban+Gs L-/ 2 billion 9"tran'he international bond offerin) *as the lar)est bond offerin) b( an %ndian ban+, -an)li Ban+ amal)amated *ith %C%C% Ban+, %C%C% Ban+ raised Rs 2 3 'rore (appro2 S< billion$ from both domesti' and international mar+ets throu)h a follo*"on publi' offer, %C%C% Ban+Gs GBP 9< million international bond offerin) mar+ed the inau)ural deal in the sterlin) mar+et from an %ndian issuer and also the lar)est deal in the sterlin) mar+et from Asia, 1aun'hed %ndiaGs first e.er 5e*eller( 'ard in asso'iation *ith 5e*elr( ma5or Gitan5ali Group, %C%C% Ban+ be'ame the first ban+ in %ndia to laun'h a premium 'redit 'ard "" The 4isa -i)nature Credit Card, 6oundation stone laid for a re)ional hub in Gandhina)ar3 Gu5arat,
%ntrodu'ed -ME Tool+it3 an online resour'e 'entre3 to help small and medium enterprises start3 finan'e and )ro* their business, %C%C% Ban+ si)ned a multi"tran'he dual 'urren'( L-S #,< billion s(ndi'ation loan a)reement in -in)apore, %C%C% Ban+ be'ame the first pri.ate ban+ in %ndia to offer both floatin) and fi2ed rate on 'ar loans3 'ommer'ial .ehi'les loans3 'onstru'tion equipment loans and professional equipment loans, %n a first of its +ind3 nation *ide initiati.e to attra't bri)ht )raduate students to pursue a 'areer in ban+in)3 %C%C% Ban+ laun'hed the BProbationar( Offi'er Pro)rammeB, 1aun'hed Ban+Thome ser.i'es for all sa.in)s and 'urrent aI' 'ustomers residin) in %ndia %C%C% Ban+ Eurasia 11C inau)urated its first bran'h at -t Petersbur)3 Russia, %""#+ %C%C% Ban+ enters L-3 laun'hes its first bran'h in &e* @or+, %C%C% Ban+ enters German(3 opens its first bran'h in 6ran+furt,
Page 26
%C%C% Ban+ laun'hed iMobile3 a brea+throu)h inno.ation in ban+in) *here pra'ti'all( all internet ban+in) transa'tions 'an no* be simpl( done on mobile phones, %C%C% Ban+ 'on'luded %ndiaGs lar)est e.er se'uritisation transa'tion of a pool of retail loan assets a))re)atin) to Rs, :!,=? billion (equi.alent of L-/ #,2# billion$ in a multi"tran'he issue ba'+ed b( four different asset 'ate)ories, %t is also the lar)est deal in Asia (e2"Mapan$in 2 ! till date and the se'ond lar)est deal in Asia (e2"Mapan P Australia$ sin'e the be)innin) of 2 8,
Ban1 2er!i:e2
Personal Ban+in)
o o o o
-a.in)s P /eposits 1oans Cards Dealth mana)ement
Global Pri.ate Clients Corporate Ban+in)

o o o o o o o o
Business Ban+in)
o o o o o
&R% Ban+in)
o o o o o o
Transa'tion Ban+in) Treasur( Ban+in) %n.estment Ban+in) Capital Mar+ets Custodial -er.i'es Rural P A)ri Ban+in) -tru'tured 6inan'e Te'hnolo)( 6inan'e Current A''ount Business 1oans 6ore2 Trade Cash Mana)ement -er.i'es Mone( Transfer Ban+ A''ounts %n.estment Propert( -olutions %nsuran'e 1oans
Page 27
In2uran:e F In!e2tment
1ife %nsuran'e
o o o o
General %nsuran'e
o o o o o
-e'urities
o o o o
Mutual 6und
o o o o
1ife %nsuran'e Retirement -olutions Health -olutions Edu'ation -olutions Health %nsuran'e O.erseas Tra.el %nsuran'e -tudent Medi'al %nsuran'e Motor %nsuran'e Home %nsuran'e Corporate 6inan'e Primar( /ealership %nstitutional Equities Retail Equities Our 6unds Performan'e Anal(ser -(stemati' %n.estin) Compare -'hemes
Pri.ate Equit( Pra'ti'e
In!e2tor .e5ation2
%t is %C%C% GroupGs belief that all sta+eholders should ha.e a''ess to 'omplete information re)ardin) its position to enable them to a''uratel( assess its future potential, %C%C% Group re)ularl( publishes information on its operations and .arious initiati.es for its in.estors,

Annual Reports %n.estor Presentations Kuarterl( 6inan'ial Results -hare pri'e and o*nership -EC 6ilin)s Credit Ratin)s
Page 28
%n.estor 6AKs
(unCa3 Nationa5 Ban1

Introdu:tion o> (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'+ e2'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 <3 P&B *as full( pri.ati;ed, The 5oint sale b( the Philippine )o.ernment and the 1u'io Tan Group of the ?8Q sta+e in P&B *as 'ompleted *ithin the third quarter of 2 <, The 1u'io Tan Group e2er'ised its ri)ht to mat'h the P :9,88 per share bid offered b( a 'ompetitor and pur'hased the shares o*ned b( the )o.ernment, The 'ompletion of sale is e2pe'ted to speed up the de.elopment of P&BAs fran'hise and operational 'ompetiti.eness, Toda(3 -tate Ban+ of %ndia (-B%$ has spread its arms around the *orld and has a net*or+ of bran'hes spannin) all time ;ones, -B%Gs %nternational Ban+in) Group deli.ers the full ran)e of 'ross"border finan'e solutions throu)h its four *in)s " the /omesti' di.ision3 the 6orei)n Offi'es di.ision3 the 6orei)n /epartment and the %nternational -er.i'es di.ision,
Page 29
(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 2 8 *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:<8 million3 up :!Q from P9 ! million of the same period last (ear, This performan'e bu'+s industr( trends for the #st quarter of 2 ! based on published in'ome reports, E.en as the operatin) en.ironment pro.ed .olatile *here ne)ati.e trends are e2pe'ted3 P&B still mana)ed to refle't a #9?Q )ro*th in forei)n e2'han)e )ains (ear"on"(ear3 from P2:2 million to P<8# million, A relentless fo'us in )eneratin) lo*"'ost funds from deposits and other fundin) sour'es led to a redu'tion in total interest e2pense b( as mu'h as 28Q, Total deposits 'losed firm at P#! billion, Operatin) e2penses *ere do*n 29Q despite in.estments made in s(stems enhan'ement and up)radin) of fa'ilities, The Ban+ has re'entl( implemented a ne* )eneration 'ore ban+in) s(stemJ 6le2'ube N an end"to"end solution desi)ned to automate both 'orporate and retail ban+in) businessesH and effe'ti.el( in"sour'e 'ore o.erseas operations to its )lobal data 'enter in the Philippines, P&BAs Mapan3 -in)apore3 Hon)+on) and Lnited -tates bran'hes as *ell as the 1ondon subsidiar( ha.e alread( been 'on.erted and the rest of the Ban+ is e2pe'ted to )o li.e soon, 22 billion3up 2<Q from end"2 8, Combined ne* boo+in)s for the #st quarter 2 ! alread( rea'hed the half"billion mar+, P&BAs &et 1oans and Re'ei.ables 'losed P88 billion, As of Mar'h 9#3 2 !3 P&BAs Capital Adequa'( Ratio under Basel %% remained formidable at #!,<#Q3 still *a( abo.e the # Q ratio required b( the Ban)+o -entral n) Pilipinas, -ub5e't to appropriate appro.als and 'learan'es3 P&B is )oin) to the 'apital mar+ets to raise a minimum of P9 billion of Tier 2 Capital in preparation for its maturin) subordinated notes in 6ebruar( 2 =, P&B *ill emer)e as the :th lar)est domesti' ban+ in the 'ountr( in terms of asset si;e on'e its planned mer)er *ith Allied Ban+in) Corporation (ABC$ is 'ompleted, The respe'ti.e Board of /ire'tors of P&B and ABC passed resolutions last April 9 3 2 ! appro.in) the plan to mer)e the t*o ban+s, This transa'tion is sub5e't to the appro.al of shareholders and re)ulator( authorities and is e2pe'ted to be 'ompleted b( the 9rd quarter of 2 !,
Gro;t4 o> (unCa3 Nationa5 Ban1

Pun5ab &ational Ban+ *as re)istered under the %ndian Companies A't on #= Ma( in the (ear #!=: and its first offi'e *as set up at Anar+ali Ba;aar in 1ahore, -in'e then3 the ban+ has be'ome a )reat name in the field of ban+in) and is .er( mu'h preferred b( the 'ustomers for the *ide ran)e of its ser.i'es, Toda(3 the ban+ has around :3= : bran'hes in around 8?: 'ities,
Page 30
/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 < 'ompanies and the =th amon) the most trusted brands in %ndia, The total asset .alue of the ban+ amounts to around L-S? billion, There is also a subsidiar( of the P&B in the Lnited Fin)dom, %n addition the ban+ also has bran'hes in some other 'ities li+eJ Fabul Hon+ Fon) Oslo -han)hai /ubai Almat(
(rodu:t and Ser!i:e2

Pun5ab &ational Ban+ offers finan'ial solutions and ser.i'es in an arra( of se'tors, All these ser.i'es that are offered +eep pa'e *ith the 'han)in) mar+et trends in order to fulfill the needs and preferen'es of the 'ustomers, -ome of the *ell +no*n se'tors on *hi'h the main fun'tions of the ban+ are based areJ Personal Ban+in) Corporate Ban+in) A)ri'ulture finan'e ser.i'es %ndustrial finan'e ser.i'es Trade finan'ial ser.i'es %nternational ban+in) ser.i'es
P&B also has 'ommer'ial relationship *ith more than 2 presti)ious international ban+s a'ross the )lobe, %t has the pro.isions of Rupee /ra*in) Arran)ements *ith around #< e2'han)e 'ompanies in the LAE and # in -in)apore,
Page 31
%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 6i2ed /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 ma2imum amount is around Rs < la+h, The ma2imum loan amount for the purpose of reno.ation and repair is Rs < la+h, %n most 'ases3 the loan is a.ailable for a period bet*een < and 2 (ears before one be'omes ?< (ears of a)e, The interest of the loan is based on the redu'in) balan'e and the prin'ipal amount of the loan is also based on the repa(in) 'apabilit( of the borro*er,
Mutua5 >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
Prin'ipal )o.ernment -e'urities 6und Prin'ipal %n'ome 6und N -hort Term /ebt Prin'ipal Cash mana)ement 6und Prin'ipal %nde2 6und
(unCa3 nationa5 3an1 4ome 5oan (unCa3 nationa5 3an1 I(O (unCa3 Nationa5 Ban1 On5ine (unCa3 Nationa5 Ban1 2et2 a Mi5e2tone >or t4e Indian Ban1ing Indu2tr*
Ne; De54i7 /e3ruar* B7 %""? " Pun5ab &ational Ban+ (P&B$3 %ndiaAs 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 and e2tension 'ounters throu)h the 6ina'le Lni.ersal Ban+in) -olution from %nfos(s3 on -un infrastru'ture and 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'hes in'ludin) 2:= e2tension 'ounters N the lar)est amon)st &ationali;ed Ban+s, Dith an in'reasin)l( d(nami' 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 fle2ibilit( of 'reatin) inno.ati.e ban+in) produ'ts to its lines of business3 and at the same time3 redu'e o.erall 'osts, The .isionar( ;eal and the futuristi' .ie* of the Ban+As 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*are platform *ith -olaris Operatin) -(stem,
AGIS BANK
Introdu:tion o> AGIS BANK
A2is 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
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 e2tent of Rs, 9<=,8? 'rores *ith the publi' holdin) (other than promoters$ at <8,8=Q, The Ban+Gs Re)istered Offi'e is at Ahmedabad and its Central Offi'e is lo'ated at Mumbai, The Ban+ has a .er( *ide net*or+ of more than !<9 bran'hes and E2tension Counters (as on 9 th Mune 2 =$, The Ban+ has a net*or+ of o.er 9829 ATMs (as on 9 th Mune 2 =$ pro.idin) 2: hrs a da( ban+in) 'on.enien'e to its 'ustomers, This is one of the lar)est ATM net*or+s in the 'ountr(, The Ban+ has stren)ths in both retail and 'orporate ban+in) and is 'ommitted to adoptin) the best industr( pra'ti'es internationall( in order to a'hie.e e2'ellen'e,
(rodu:t2 and 2er!i:e2

Ban1ing and Sa!ing2

Ban+in) and A''ounts Con.enien'e Ban+in) Credit Cards &R% -er.i'es /emat /eposits
-or)orate and In2titutiona5

Corporate 6inan'e Treasur( %n.estment Ban+in) %nstitutional Equities
In!e2tment2 and In2uran:e
1ife %nsuran'e
Page 34
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/- BANK
Page 35
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$3 %ndiaGs premier housin) finan'e 'ompan(, %t *as amon) the first 'ompanies to re'ei.e an Gin prin'ipleG appro.al from the Reser.e Ban+ of %ndia (RB%$ to set up a ban+ in the pri.ate se'tor, The Ban+ 'ommen'ed its operations as a -'heduled Commer'ial Ban+ in Manuar( #==< *ith the help of RB%Gs liberali;ation poli'ies, %n a milestone transa'tion in the %ndian ban+in) industr(3 Times Ban+ 1imited (promoted b( Bennett3 Coleman P 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( <,8< shares of Times Ban+, %n 2 ! H/6C Ban+ a'quired Centurion Ban+ of Pun5ab ta+in) its total bran'hes to more than #3 , The amal)amated ban+ emer)ed *ith a stron) deposit base of around Rs, #3223 'rore and net ad.an'es of around Rs, !=3 'rore, The balan'e sheet si;e of the 'ombined entit( is o.er Rs, #3?93 'rore, The amal)amation added si)nifi'ant .alue to H/6C Ban+ in terms of in'reased bran'h net*or+3 )eo)raphi' rea'h3 and 'ustomer base3 and a bi))er pool of s+illed manpo*er,
Bu2ine22 /o:u2
H/6C Ban+ deals *ith three +e( business se)ments N Dholesale Ban+in) -er.i'es3 Retail Ban+in) -er.i'es3 Treasur(, %t has entered the ban+in) 'onsortia of o.er < 'orporates for pro.idin) *or+in) 'apital finan'e3 trade ser.i'es3 'orporate finan'e and mer'hant ban+in), %t is also pro.idin) sophisti'ated produ't stru'tures in are as of forei)n e2'han)e and deri.ati.es3 mone( mar+ets and debt tradin) and equit( resear'h,
84o5e2a5e Ban1ing Ser!i:e2

The Ban+Gs tar)et mar+et ran)es from lar)e3 blue" 'hip manufa'turin) 'ompanies in the %ndian 'orporate to small P mid"si;ed 'orporates and a)ri"based businesses, 6or these 'ustomers3 the Ban+ pro.ides a *ide ran)e of 'ommer'ial and transa'tional ban+in) ser.i'es3 in'ludin) *or+in) 'apital finan'e3 trade ser.i'es3 transa'tional ser.i'es3 'ash mana)ement3 et', The ban+ is also a leadin) pro.ider of stru'tured solutions3 *hi'h 'ombine 'ash mana)ement ser.i'es *ith .endor and distributor finan'e for fa'ilitatin) superior suppl( 'hain mana)ement for its 'orporate 'ustomers, H/6C Ban+ has made si)nifi'ant inroads into the ban+in) 'onsortia of a number of leadin) %ndian 'orporates in'ludin) multinationals3 'ompanies from the domesti' business houses and prime publi' se'tor 'ompanies, %t is re'o)ni;ed as a leadin) pro.ider of 'ash mana)ement and transa'tional ban+in) solutions to 'orporate 'ustomers3 mutual funds3 sto'+ e2'han)e members and ban+s,
Page 36
.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) pla(ers in the Umer'hant a'quirin)C business *ith o.er 8 3 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 6i2ed /eposits3 1oans3 Bill Pa(ments3 et',
Trea2ur*
Dithin this business3 the ban+ has three main produ't areas " 6orei)n E2'han)e and /eri.ati.es3 1o'al Curren'( Mone( Mar+et P /ebt -e'urities3 and Equities, These ser.i'es are pro.ided throu)h the ban+Gs Treasur( team, To 'ompl( *ith statutor( reser.e requirements3 the ban+ is required to hold 2<Q of its deposits in )o.ernment se'urities, The Treasur( business is responsible for mana)in) the returns and mar+et ris+ on this in.estment portfolio,
Di2tri3ution Net;or1
H/6C Ban+ is headquartered in Mumbai, The Ban+ has an net*or+ of #382< bran'hes spread in 88# 'ities a'ross %ndia, All bran'hes are lin+ed on an online real"time basis, Customers in o.er < lo'ations are also ser.i'ed throu)h Telephone Ban+in), The Ban+ has a presen'e in all ma5or industrial and 'ommer'ial 'entres a'ross the 'ountr(, Bein) a 'learin)Isettlement ban+ to .arious leadin) sto'+ e2'han)es3 the Ban+ has bran'hes in the 'entres *here the &-EIB-E ha.e a stron) and a'ti.e member base, The Ban+ also has 93!=! net*or+ed ATMs a'ross these 'ities, Moreo.er3 H/6C Ban+Gs ATM net*or+ 'an be a''essed b( all domesti' and international 4isaIMasterCard3 4isa Ele'tronIMaestro3 PlusICirrus and Ameri'an E2press CreditIChar)e 'ardholders,
(rodu:t2 and 2er!i:e2
Page 37
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 e2port '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+, N.I Ban1ing+ 6orei)n e2'han)e transfers3 non"resident ordinar( (&RO$ and non"resident e2ternal (&RE$ fi2ed deposits3 and mutual funds are 'ertain non"resident %ndian (&R%$ ban+in) ser.i'es pro.ided b( H/6C Ban+,
/inan:ia52
Asset *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 EBest Ban+ of 2 !A b( Business %ndia %t has been a*arded EBest Retail Ban+ 2 !A b( Asian Ban+er E2'ellen'e
Page 38
Mi'rosoft and %ndian E2press Group 'onferred E-e'urit( -trate)ist A*ard 2 to H/6C Ban+
!A
-HA(TE. IV
Page 39
Comparison of 8PAs -trate)( of these Ban+s
-OM(A.ISON ON THE BANKS ON BASIS O/ @(2

#, Comparison on the basis of (.ODU-T
AGIS BANK SBI BANK I-I-I BANK HD/- BANK (NB
Page 40
Ban1ing and Sa!ing2+

Ban+in) A''ounts Con.enien'e Ban+in) Credit Cards &R% -er.i'es /emat /eposits and

Ban+in) A''ounts Con.enien'e Ban+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) and

Ban+in) A''ounts Con.enien'e Ban+in) Credit Cards Prepaid Cards &R% -er.i'es /emat /eposits 6i2ed /eposit A)ri P Ban+in) Business Ban+in) Pa(ment -er.i'es Rural and

Ban+in) A''ounts Con.enien'e Ban+in) Credit Cards Prepaid Cards Pri.ate Ban+in) %mperia Premium Ban+in) Preferred Ban+in) Classi' Ban+in) /emat /eposits Pa(ment -er.i'es and

Ban+in) A''ounts Con.enien'e Ban+in) Corporate Ban+in) A)ri'ulture finan'e ser.i'es Personal Ban+in) Credit Cards &R% -er.i'es Online Pa(ment /emat /eposits %nternational ban+in) ser.i'es Bill and
%nternet Ban+in)
-or)orate In2titutiona5
Corporate 6inan'e Treasur( %n.estment Ban+in) %nstitutional Ban+in)
and -or)orate In2titutiona5

Corporate Ban+in) Treasur( %n.estment Ban+in) %nstitutional Ban+in) %nternational Ban+in)
and -or)orate In2titutiona5

Corporate 6inan'e Treasur( %n.estment Ban+in) %nstitutional Equities
-or)orate In2titutiona5 and

Corporate 6inan'e %n.estment Ban+in) %nstitutional Equities
and
-or)orate In2titutiona5
Corporate Ban+in)
and
-o'ial Ban+in) %ndustrial finan'e ser.i'es Trade finan'ial ser.i'es
In!e2tment2 In2uran:e

and
Dor+in) Capital 6inan'e
1ife %nsuran'e Mutual 6unds Gold -hare Tradin)
In!e2tment2 In2uran:e

and In!e2tment2 In2uran:e

General %nsuran'e Tra.el %nsuran'e Health %nsuran'e Hospital Care Mutual 6unds 6ore2 -er.i'es -e'urities -hare Tradin) Estate Plannin)
In!e2tment2 In2uran:e and

General %nsuran'e
and In!e2tment2 In2uran:e
1ife %nsuran'e Mutual 6unds Health Produ'ts Equit(
1ife %nsuran'e
and
Mutual 6unds
1ife %nsuran'e
Health %nsuran'e Hospital 6inan'e Care
Mutual 6unds 6ore2 -er.i'es -e'urities -hare Tradin) Estate Plannin) Equities /eri.ati.es P
9oan2 and Borro;ing2

Car 6inan'e 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
9oan2 Borro;ing2
Car 6inan'e
and 9oan2 and
Mudra Gold Bar
Page 41
Commer'ial 1oan Home 1oan Personal 1oan 1oan A)ainst Propert( A)ri'ulture 1oan
Borro;ing2
Car 6inan'e Commer'ial 1oan Edu'ation 1oan Home 1oan Personal 1oan 1oan A)ainst Propert( A)ri'ulture 1oan
Trade -er.i'es
Attorne( basis 6or the purpose of repair or reno.ation of a house or a buildin) Personal 1oan 1oan A)ainst Propert( A)ri'ulture 1oan
9oan2 Borro;ing2
Car 6inan'e Commer'ial 1oan Home 1oan
and
9oan2 Borro;ing2
Car 6inan'e Commer'ial 1oan Home 1oan
and
Personal 1oan Edu'ation 1oan 1oan A)ainst Propert( 1oan A)ainst -e'urities
Personal 1oan 1oan A)ainst Propert( 1oan A)ainst -e'urities
2, Comparison on the basis of (.I-E

The pri'in) de'isions or the de'isions related to interest and fee or 'ommission 'har)ed b( 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 b( the RB% and other 'har)es are 'ontrolled b( %BA,
9, Comparison on the basis of (9A-E

AGIS BANK
!<9 Bran'hes,
SBI BANK
##3::! Bran'hs and a further ?< V asso'iate ban+ bran'hes, More than = a'ross %ndia, ATMs
I-I-I BANK
#3:<# Bran'hes, Presen'e 'ountries, in #!
HD/- BANK
#:#2 Bran'hes,
(NB
:= : Bran'hes around 8?: 'ities, in
9829 ATMs in #8 -tate %n %ndia,
:382# ATMs in %ndia,
92=< ATMs in <2! 'ities in %ndia,
:< ATMs *ith o*n :< ATMs,
:, Comparison on the basis of (.OMOTION

Page 42
Ad!erti2ing+
Tele.ision Radio Mo.ies
Ad!erti2ing+
Ad!erti2ing+
Ad!erti2ing+
Ad!erti2ing+
Tele.ision Radio
(rint Media+
Hoardin)s &e*spaper Ma)a;ines
(rint Media+
(rint Media+
(rint Media+
(rint Media+
(u35i:it*+
Campus 4isits -ponsorship Canopies
(u35i:it*+
(u35i:it*+
(u35i:it*+
(u35i:it*+
Campus 4isits
Sa5e2 (romotion+ Sa5e2 (romotion+

Gifts
Sa5e2 (romotion+
Gifts
Sa5e2 (romotion+
Gifts
Sa5e2 (romotion+
Gifts
Gifts
(er2ona5 Se55ing+ (er2ona5 Se55ing+

Cross"sale (-ellin) at Competitors Pla'e$, Personali;ed -er.i'e,
(er2ona5 Se55ing+
(er2ona5 Se55ing+
(er2ona5 Se55ing+
<, Comparison on the basis of (EO(9E

AGIS BANK
#: Emplo(ee Base
SBI BANK
2 <3!=? Base Emplo(ee
I-I-I BANK
#8 3?9# Base Emplo(ee
HD/- BANK
<23?!8 Base Emplo(ee
(NB
/ata &,A,
?, Comparison on the basis of (.O-ESS

Page 43
StandardiEation+ Ban+ has )ot standardi;ed pro'edures )ot t(pi'al transa'tions, %n fa't not onl( all the
bran'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 the( are sub5e't to, Besides this3 ea'h of the ban+s has its standard forms3 do'umentations et', -tandardi;ation sa.es a lot of time behind indi.idual transa'tion,
-u2tomiEation+ 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 time
ta+en,
Sim)5i:it*+ Ban+s .arious fun'tions are se)re)ated, -eparate 'ounters e2ist *ith 'lear indi'ation, Thus a
'ustomer *antin) to deposit mone( )oes to EdepositsA 'ounter and does not min)le else*here, This ma+es pro'edures not onl( simple but 'onsume less time, Besides instru'tion boards in national boards in national and re)ional lan)ua)e help the 'ustomers further,
-u2tomer in!o5!ement+ ATM does not in.ol.e an( ban+ emplo(ees, 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 and si)nature requires,
8, Comparison on the basis of (HYSI-A9 EVIDAN-E

AGIS BANK
%nternetIDeb Pa)es Paper*or+ Bro'hures 6urnishin)s Business Cards Buildin) -i)na)e 6inan'ial Reports Tan)ibles Pun'h 1ines Emplo(eeAs /ress Code
SBI BANK
%nternetIDeb Pa)es Paper*or+ Bro'hures 6urnishin)s Business Cards Buildin) -i)na)e 6inan'ial Reports Tan)ibles Pun'h 1ines
I-I-I BANK
HD/- BANK
(NB
%nternetIDeb Pa)es Paper*or+ Bro'hures 6urnishin)s Business Cards Buildin) -i)na)e 6inan'ial Reports Tan)ibles Pun'h 1ines
-HA(TE. V
Page 44
-DOT Anal(sis of the Ban+s
S8OT ANA9YSIS O/ SBI BANK
Page 45
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 < list3 and in 2 = -tate ban+ of %ndia is the 2=th most reputed 'ompan( in the *orld a''ordin) to 6orbes, Dith an asset base of S2< billion and S#=< billion in deposits3 it is a re)ional ban+in) behemoth, 8ide Di2tri3ution Net;or1+ E2'ellent penetration in the 'ountr( *ith more than ##3::! 'ore bran'hes and more than ?< bran'hes of asso'iate ban+s (subsidiaries$, %n -himla -B% has #: 'ore Bran'hes and ? bran'hes of its asso'iate ban+, Di!er2i>ied (ort>o5io+ -B% Ban+ has all the produ'ts under its belt3 *hi'h help it to e2tend the relationship *ith e2istin) 'ustomerEs Ban+ has umbrella of produ'ts to offer their 'ustomers3 if on'e 'ustomer has relationship *ith the ban+, -ome Produ'ts3 *hi'h -B% Ban+ is offerin) areJ Retail Ban+in) Business Ban+in) Mer'hant Establishment -er.i'es (E/C Ma'hine$ Personal loans P Car loans3 %nsuran'e3 Housin) 1oans, Go!ernment O;ned+ Go.ernment o*ns ? Q sta+e in -B%, This )i.es -B% an ed)e o.er pri.ate ban+s in terms of 'ustomer se'urit(, 9o; Tran2ition -o2t2+ -B% offers .er( lo* transition 'osts *hi'h attra'ts small 'ustomer, Continued effort to in'rease lo* 'ost deposit *ould ensure impro.ement in &%Ms and hen'e earnin)s,
8ea1ne22e2+
The e2istin) hierar'hi'al mana)ement stru'ture of the ban+3 althou)h stren)th in some respe'ts3 is a barrier to 'han)e, Thou)h -B% 'ards are the 2nd lar)est pla(er in the 'redit 'ard industr(3 it has the hi)hest non performin) assets (&PAs$ in the industr(3 *hi'h stand out to be at#?,2! Q (/e' 2 8$, ModerniEation+ -B% la)s *ith respe't to pri.ate pla(ers in terms of moderni;ation of its pro'esses3 infrastru'ture3 'entrali;ation3 et', -B% is 'urrentl( operatin) at a lo*est CAR (!Q$, %nsuffi'ient 'apital ma( restri't the )ro*th prospe'ts of the ban+ )oin) for*ard,
Page 46
/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 ?< more bran'hes of its asso'iate ban+s and has also = ATMs, %n -himla -B% has#: 'ore bran'hes and ? asso'iate bran'hes and has ! ATMs, This *ill further in'rease its rea'h, %n'reasin) trade and business relations and a lar)e number of e2patriate populations offers a )reat opportunit( to e2pand on forei)n soil, Global e2pansionJ -B% alread( has e2panded )loball( and start its operations internationall( in 92 'ountries li+e Australia3 Ban)ladesh3 et',,,, and has more plans of e2pansion in other )lobal mar+ets, Gro*in) retail P -MEs thrust *ould lead to hi)her business )ro*th, Mi:ro /inan:eJ there is a lot of )ro*th opportunit( in the area of mi'ro finan'e, -tron) e'onomi' )ro*th *ould )enerate hi)her demand for funds pursuant to hi)her 'orporate demand for 'redit on a''ount of 'apa'it( e2pansion,
T4reat2+
Ad!ent o> MN- 3an12+ 1ar)e numbers of M&C ban+s are mushroomin) in the %ndian mar+et due to the friendl( poli'ies adopted b( the )o.ernment, This 'an in'rease the le.el of 'ompetition and pro.e a potential threat for the mar+et share of -B% ban+, Consumer e2pe'tations ha.e in'reased man( folds in last fe* (ears and the ban+ has not been responsi.e enou)h to meet them on time, Pri.ate ban+s ha.e started .enturin) into the rural and semi"urban se'tor3 *hi'h used to be the bastion of the -tate Ban+ and other P-L ban+s Em)5o*ee Stri1e+ There *as an emplo(ee stri+e in the (ear 2 ? *hi'h disrupted -B%Es a'ti.ities, This 'an be repeated in the future, -tiff 'ompetition3 espe'iall( in the retail se)ment3 'ould impa't retail )ro*th of -B% and hen'e slo*do*n in earnin)s )ro*th -lo* do*n in domesti' e'onom( *ould pose a 'on'ern o.er 'redit off"ta+e, Thereb( impa'tin) earnin)s )ro*th, The 'han)in) interest rates and the 'han)in) poli'ies of RB%,
Page 47
(orterA2 >i!e >or:e2 t4eor*+
T4reat o> -om)etitor2+ Top Performin) Publi' -e'tor Ban+ Andhra Ban+ Allahabad Ban+ Pun5ab &ational Ban+ /ena Ban+ 4i5a(a 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 E2press
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*a(s 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
disposable in'omes3 other attra'ti.e options a.ailable to 'ustomers,
B-G t4eor*+ :a24 :o;

There is a lot of )ro*th potential for the ban+in) industr( be'ause of in'reasin) disposable in'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,
Page 49
S8OT ANA9YSIS O/ I-I-I BANK

Strengt4+
$ On5ine Ser!i:e2J %C%C% Ban+ pro.ides online ser.i'es of all itAs 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 P 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 P are .er( useful to the 'ustomers P staff of the ban+, & /riend5* Sta>>J The staff of %C%C% Ban+ in all bran'hes is .er( friendl( P help the 'ustomers in all 'ases, The( pro.ide faster ser.i'es alon) *ith bondin) P 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 itAs +ind P is .er( helpful for the 'ustomers *ho are in ur)ent need of mone(, B Ot4er /a:i5itie2 to t4e -u2tomer2 F Em)5o*ee2 J %C%C% Ban+ also pro.ides other fa'ilities li+e drin+in) *ater fa'ilities3 proper sittin) arran)ements to the 'ustomers, And there are also proper 4entilation P sanitar( fa'ilities for the emplo(ees of the ban+, ' 9ate nig4t ATM 2er!i:e2 J %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 ##J pm, at ni)ht in 'ertain bran'hes,
8ea1ne22+
$ Hig4 Ban1 Ser!i:e -4arge2 J %C%C% ban+ 'har)es hi)hl( to 'ustomers for the ser.i'es pro.ided b( them *hen 'ompared to other ban+ P that is *h( it is onl( in the rea'h of hi)her 'lass of so'iet(,
% 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,
O((O.TUNITIES+
$ 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 P promote the different poli'ies introdu'ed b( the insuran'e 'ompan( P 'on.in'e their 'ustomers to bu( insuran'e poli'ies, % In:rea2e in )er:entage o> .eturn2 on in:rea2e J The ban+ should pro.ide hi)her returns on deposits in 'omparison of the present situation, This *ill also up to lar)e e2tent help the ban+ earn profits P popularit(, & .e:ruit )ro>e22iona55* guided 2tudent2+ Ban+ P %nsuran'e is a spe'ial non"aid 'ourse *here the students spe'iali;e in the fun'tionin) P ser.i'es of the ban+ P also are +no*led)e about .arious ta2 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 : th quadrant so the ban+ should ne)le't it,
TH.EATS+
$ -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,
S8OT ANA9YSIS O/ AGIS BANK

Strengt4+
E2tremel( 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<3!22 Cr, On 9#st Mar'h 2 = 6rom Rs, #=3=!2 Cr, As On 9#st Mar'h 2 ! -ho*in) A @ear On @ear Gro*th Of 2=Q, -or)orate Ban1ingJ Current A''ount deposits )re* b( 2:Q (o(3 from Rs, 2 3 :< 'rores as at end Mar'hA ! to Rs, 2:3!22 'rores as at end Mar'hA =, -upport of .arious Promoters -tron) te'hnolo)( Total /eposits Rs #3#8398: 'rore &et Ad.an'es Rs !#3<<8 'rore &et &PA ,9<Q Capital Adequa'( Ratio #9,?=Q
8ea1ne22+
&ot ha.in) %ma)e LT% (fraud$ Hi)her 'ost Customer ser.i'e Mar+et Capitali;ation 4er( 1o*
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,
S8OT ANA9YSIS O/ 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 s(stems3 et', Mana)ement 'o.er insuffi'ient, -e'toral )ro*th is 'onstrained b( lo* unemplo(ment le.els and 'ompetition for staff,
O))ortunitie2+

Profit mar)ins *ill be )ood, Could e2tend 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,
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,
-HA(TE. VI
Anal(sis of the /ata
(er:entage o> .e2)ondent2 ;it4 .e>eren:e to AGE Grou)
-4art $+- Per'enta)e of Respondents *ith Referen'e to AGE Group :9Q of the respondent *ho responded lies in the a)e )roup of 2 "9 (rs, 29Q of the respondent *ho responded lies in the a)e )roup of 9#": (rs, #9Q of the respondent *ho responded lies in the a)e )roup of :#"< (rs, ?Q of the respondent *ho responded lies in the a)e )roup of <#"? (rs, #<Q of the respondent *ho responded lies in the a)e )roup of more than ? (rs,
Tota5 Num3er o> .e2)ondent2 Di!ided on t4e Ba2i2 o> O::u)ation
-4art %+- Total number of respondents di.ided on the basis of o''upation Ana5*2i2+ - %t is seen that ma2imum 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<Q of the respondent ha.e in'ome # la' P abo.e, 99Q of the respondents ha.e in'ome <"# la', : Q of the respondents ha.e in'ome 9"<la', 2Q of the respondents ha.e in'ome belo* #"9la',
Edu:ation and SeD )ro>i5e o> -u2tomer .e2)ondent2
-4art =+- Edu'ation and -e2 profile of Customer Respondents
Variou2 3an12 ;it4 ;4i:4 )eo)5e 4a!e a::ount2
-4art B+- 4arious ban+s *ith *hi'h people ha.e a''ounts ANA9YSIS- The per'enta)e respondents *ith referen'e to ban+ the( use, A''ordin) to this )raph the ma2imum number of users of ban+ the( prefer is other li+e )o.ernment or publi' ban+ be'ause of hi)h 'har)es of pri.ate ban+, And in pri.ate ban+ the most preferred ban+ is %C%C% and H/6C and rest share is .er( lo*,
T*)e o> A::ount
-4art '+- /ifferent t(pes of a''ount *hi'h different respondents ha.e,
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 <2Q uses -a.in) a''ount, Out of the total respondent3 <Q uses other a''ounts,
In!e2tment (re>erred 3* (eo)5e
-4art @+- Lser preferen'e in.estment options
ANA9YSIS- This anal(sis sho*s that ma2imum people )oes for ban+ deposit, Real estate and
share and debentures ha.e equal per'enta)e #?Q3 follo*ed b( L1%P and then rest of the in.estment after*ards,
.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 e2pe'ted returns, # *as +een be'ause of re.ie*s in the ma)a;ine, 9 out of total be'ause of ris+ profile,
-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 #<Q had 'onsideration for future 'ontin)en'ies, Out of the total respondent3 =Q had 'onsideration for pension, Out of the total respondent3 92Q had 'onsideration for ta2 sa.in), Out of the total respondent3 29Q had 'onsideration for *ealth 'reation,
T*)e o> .i21 Ta1er2 on Ba2i2 o> T4ere Age
-4art $"7 $$+- T(pe of ris+ ta+er on the basis of a)e Ana5*2i2+ Moderate ris+ ta+ers are ma2, of a)e 2 "9 3 from a)e of 9#"< the no, of moderate ris+ ta+ers are 'onstant and the no, de'line at the a)e of <#"? and is least for people *ho are abo.e ? (ears,
1o* ris+ ta+ers are also hi)hest at a)e of 2 "9 and are almost 'onstant from a)e 9#"< 3 the )raph sho*s a little de'line from a)e <#"? and it a)ain rises for people *ho are abo.e ? (ears, Hi)h ta+ers are less at the a)e se)ment of 2 "9 (ears the( rise and is ma2, at the a)e bI* 9#": then be'omes ;ero from :#"? and a)ain rise for respondents *ho are abo.e ? (ears,
T*)e o> In!e2tor2 On t4e Ba2i2 o> T4ere Age
-4art$%+- T(pe of in.estors on the basis of their a)e Ana5*2i2+- %n e.er( se)ment of a)e )roup short term in.estor are less than lon) term in.estors, 1on) term in.estors are ma2, at a)e )roup of 2 "9 follo*ed b( a)e )roup of 9#": ,
Dhereas short term in.estors are ma2imum for in.estors *ho ha.e a)e )reater than ? (ears,
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 P /ebentures ma2imum are of 9#": (ears follo*ed b( people from :#"< (ears, 6or Real Estate 2 "9 (ears )roup ma2imum P 9#" ? 'onstant, 6or L1%P- ma2 are from a)e of 2 "9 (ears, 6or Bullions .er( less respondents are there and the( also of a)e )roup of (oun)est and oldest, Mutual fund is used b( people from 2 "< (ears of a)e )roup for in.estment, Amon) them 9#" : (ears )roup has ma2, respondents, Ban+ /eposit is used b( 2 "9 (ears follo*ed b( abo.e ? (ears respondents, Post Offi'e is used as in.estment option ma2, b( older people follo*ed b( people of a)e )roup from :#"< (ears,
Ban1 )re>eren:e on t4e 3a2i2 o> Age
-4art $=+- Ban+ preferen'e on the basis of a)e
Ana5*2i2+
Ma2, 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 A2is Ban+,
2 "9 (ears of a)e )roup people sho* more interest for -C ban+ than other a)e )roups
Sour:e o> In>ormation a3out Ser!i:e2
-4art $B+- -our'e of %nformation about -er.i'es The abo.e )raph states that 'ustomers 'ame to +no* about the ser.i'es from the follo*in) sour'es of these ban+s,
-HA(TE. VII
/inding27 .e:ommendation2 and -on:5u2ion
/inding2
-um Of the respondents to 'hoose the -B% ban+ is be'ause the ban+ is pro.in) more ATM fa'ilit( to the 'ustomers, And man( of the respondents are sa(in) the reason to 'hoose the ser.i'es of the -B% ban+ is be'ause the( are )ood in effi'ient 'ustomer ser.i'e, And the in'ome le.el of the most respondents *ho are ha.in) an a''ount in -B% ban+ fallin) under the in'ome le.el of Rs, <3 N Rs, 9 3 , The most respondents of a)e 2<(rs " 9<(rs are ha.in) an a''ount in -B% ban+, The both )ender are equall( ha.in) an a''ount in -B% ban+, And man( of the respondents are not a*are of the man( ser.i'es rendered b( the -B% ban+, The fe* are deposit of 'ash in ATM3 request for 'heque boo+ in ATM3 end of the da( balan'e in mobile3 et', -um Of the respondents to 'hoose the %C%C% ban+ is be'ause the ban+ is more reliable to the 'ustomers, And man( of the respondents are sa(in) the reason to 'hoose the ser.i'es of the %C%C% ban+ is be'ause the( are )ood in effi'ient 'ustomer ser.i'e and effi'ient 'omplaint handlin), And the in'ome le.el of the respondents *ho are ha.in) an a''ount in %C%C% ban+ fallin) under the in'ome le.el of Rs, <3 " Rs, 9 3 , The most respondents of a)e 2<(rs " 9<(rs are ha.in) an a''ount in %C%C% ban+, The male )ender is mostl( ha.in) an a''ount in %C%C% ban+, And man( of the respondents are not a*are of the man( ser.i'es rendered b( the %C%C% ban+, The fe* are deposit of 'ash in ATM3 request for 'heque boo+ in ATM3 end of the da( balan'e in mobile3 et', %n 'ase of H/6C3 P&B and A>%- Ban+3 the most respondents of a)e 2<(rs " 9<(rs *ho ha.e an a''ount in these ban+s, The most of the 'ustomers of these ban+s (P&B and A2is$ are those li.es3 *or+s near the bran'h of these ban+s,
%n -himla most of the 'ustomersA 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,
-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 'ountr(3 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 t(pi'al urban life st(le 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(,
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,
A((ENDI-S
MA.KETING ST.ATIGIES ADO(TED BY VA.IOUS BANKS IN SHIM9A #, -e2 J 2, A)e J Male Belo* 9 J &on"Graduate Post"Graduate Te'hni'al Professional Kualifi'ation 9#": 6emale :#"< Abo.e ?
9, Edu'ational Kualifi'ation &on"Matri'ulate Graduate
Others (Please spe'if($77777777777777777777777,, :, Professional -tatus J A)ri'ulture -alaried <, Monthl( %n'ome Lp to Rs, # 3 Rs,2 3 # " 2<3 J Rs, # 3 Rs, 2<3 # " #<3 #"9 3 Rs, #<3 #"2 3 # BusinessIProfessional House *ife Retired
Abo.e Rs, 9 3
?, /o (ou ha.e Ban+ a''ountY @es 8, &ame of Ban++ -B% %C%C% &o H/6C P&B A>%OTHER
!, /o (ou )et all (our requirements of Ban+in) ser.i'es satisfied from Ban+sY
@es
&o
=, %f E&oA3 *hat t(pe of produ'tsIser.i'es (ou need from Ban+sY #, 7777777777777 2, 7777777777777 9, 7777777777777 # , Dhile ma+in) in.estments in Ban+in) produ'tsIser.i'es *hat do (ou loo+ forY -afet( Returns 1iquidit( Kualit( of ser.i'e
Others (Please spe'if($ 77777777777777777777777, ##, Dh( did (ou 'hoose this Ban+ for the follo*in)Y a,$ /eposits J 1o'ation Con.enient Business Hours 6a'ilities P Amenities %nterest rates Emplo(ee Beha.ior Good ser.i'e
Other (Please spe'if($ 77777777777777777777777,
b,$ 1oans
J 1o* Cost 1ess ri)idit(
1o'ation Personal 'onta't *ith Offi'ial -e'urit( norms ',$ An'illar( -er.i'es J
Others (Please spe'if($ 77777777777,
1o'ation 1o* 'har)es Kui'+ ser.i'e
Par+in) /eposit holder Others (Please spe'if($ 7,,77777777777, @es &o
#2, /oes (our Ban+ 'ondu't re)ular Customer meetsY
#9, /oes (our Ban+ de.elop ne* produ'ts based on 'ustomer needsY @es &o
#:, %f E@esA3 &ame fe* ne* produ'ts that ha.e been introdu'ed b( (our Ban+ in re'ent J #, 7777777777777,,,,,,,, 2, 777777777777777 9, 777777777777777 #<, %s the Ban+Ibran'h 'omputeri;edY #?, Dhether the Ban+Ibran'h pro.ides the follo*in)Y ATM 6a'ilities Teller 6a'ilities Online 6a'ilities Tele ban+in) 6a'ilities @es @es @es @es &o &o &o &o @es &o
#8, /oes the bran'h render (ou the follo*in) ser.i'es promptl(Y Ad.i'e on maturit( of deposits in time A''urate Passboo+sI-tatements Lpdated Passboo+I-tatements Prompt e2e'ution of %nstru'tions @es @es @es @es &o &o &o &o
#!, /oes the Bran'h pro.ide the follo*in) fa'ilities to its 'ustomersY -afe Custod( of Arti'les -afe /eposit 1o'+er Remittan'e li+e //ITTIColle'tion @es @es @es &o &o &o
#=, Dhether inside the Ban+Ibran'h (ou )et fa'ilities li+e J Comfortable seatin) arran)ements -in)le *indo* fa'ilit( Assistan'e throu)h UMa( % help (ouC 'ounter 2 , Ha.e (ou a.ailed an( loan from this ban+Y 2#, %f E@esA3 'omment on the follo*in) J #, Timeliness of san'tion of loan J 1ess than # *ee+ 9 to : *ee+s 2, Repa(ment Period J 9, /o'umentation J Con.enient -imple 6le2ible # to 2 *ee+s Abo.e : *ee+s %n'on.enient Comple2 Ri)id @es @es @es @es &o &o &o &o
:, -e'urit( aspe'ts J
22, Ho* did (ou 'ome to +no* of this Ban+ and its ser.i'esY Other 'ustomers Ban+erAs .isits Ad.ertisements Publi'it( materials -o'ial fun'tions Campai)ns
Others (Please spe'if($ 77777777777777777777777, 29, -in'e ho* lon) are (ou ban+in) *ith this parti'ular Ban+ 777777777777
2:, Ho* frequentl( do (ou .isit the bran'h 7777777777777777777, 2<, O.erall3 ho* do (ou rate the qualit( of ser.i'e of this Ban+Y E2'ellent -atisfa'tor( 4er( )ood Lnsatisfa'tor( Good Bad
2?, /o (ou ha.e Ban+ a''ount of an( other Ban+Y #, 777777777777,,, 2, 77777777777777
THANK YOU VE.Y MU-H /O. S(A.ING YOU. VA9UAB9E TIME (%dentifi'ation number77777$
Bi35iogra)4*
8e3 2ite2
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Ban+in) -e'tor Reforms in %ndia " -ultan -in)h, -er.i'es Mar+etin) " /r, -,M,Mha,
Mar+etin) Resear'h UThe %C6A% Lni.ersit(C %C6A% Publi'ations, -harath Mutur3 A Ra.i Babu3 A Redd(3 6ero; Oaheer and -hishir Fumar (2 <$, E%&/%A& BA&F%&G 2 < -PEC%A1A3 Journal of Chartered Financial Analyst, 4ol N >%3 The %C6A% Lni.ersit( Press, %ndu Prasad3 Fa.itha Putta3 -an5o( /e and Madhuparna Cha+rabort( (2 ?$, E%&/%A& BA&F%&G 2 <"2 ?A3 Journal of Chartered Financial Analyst , 4ol N >%%3 The %C6A% Lni.ersit( Press, F & Purandar3 Frishna Pri(a (2 !$, EMana)in) Assets and 1iabilitiesA3 Journal of Professional Banker. 4ol N4%%%3 The %C6A% Lni.ersit( Press, -usan Geor)e3 Pri(a -en (2 8$, E%ndian E'onom(J Gro*in) Ris+s on the Hori;onA3 Journal of Professional Banker. 4ol N4%%3 The %C6A% Lni.ersit( Press, Alo+e B3 Merr( Thomas and G Adila+shmi (2 <$, EMar+etin) in the 6inan'ial -er.i'es -e'torA3 Journal of Marketin Master!ind. 4ol N43 The %C6A% Lni.ersit( Press, G Ramesh Babu3 F & Purandar and Frishna Pri(a (2 8$, EBan+in) on %nno.ationA3 Journal of Professional Banker. 4ol N4%%3 The %C6A% Lni.ersit( Press, AmarCit Sing4 9a55 (%""# . I9ate2t De!e5o)ment in Ban1ing7 /inan:e7 -ommer:e and Indu2tr*A7 Journal of Bankin Studies. Vo5 ,GGVII7 No. B.

Marketing Strategies Adopted by Various Banks in Shimla

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Marketing Strategies Adopted by Various Banks in Shimla

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A THESIS ON

Marketing strategies adopted by various Banks in Shimla.

SUBMITTED TO- Mr. Vinod Negi (THESIS GUIDE

SUBMITTED BY- Amit

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

A report submitted in partial fulfillment of the requirements of

THE MBA PROGRAM (The Class of 2 !"2 # $ %&C

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

&ame (in Capital letters$ /esi)nation Campus

Mar1eting in Ban1ing Se:tor

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

Re.ie* of 1iterature and Resear'h Methodolo)(

.e!ie; o> 9iterature

Statement o> t4e (ro35em

.ationa5 3e4ind t4e Stud*

O3Ce:ti!e o> Stud*

Sam)5e SiEe and Sam)5e De2ign

S:o)e o> t4e Stud*

9imitation o> t4e Stud*

(ro>i5e o> Ban12

State Ban1 o> India

T4e eig4t 3an1ing 2u32idiarie2 are+

(rodu:t2 and Ser!i:e2

Ot4er Ser!i:e2 A)ri'ultureIRural Ban+in) &R% -er.i'es

-a.in)s P /eposits 1oans Cards Dealth mana)ement

Global Pri.ate Clients Corporate Ban+in)

Pri.ate Equit( Pra'ti'e

(unCa3 Nationa5 Ban1

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

Gro;t4 o> (unCa3 Nationa5 Ban1

(rodu:t and Ser!i:e2

Mutua5 >und2 o> (unCa3 Nationa5 Ban1

(rodu:t2 and 2er!i:e2

-or)orate and In2titutiona5

Corporate 6inan'e Treasur( %n.estment Ban+in) %nstitutional Equities

In!e2tment2 and In2uran:e

Mutual 6unds Gold -hare Tradin)

9oan2 and Borro;ing2

Introdu:tion o> HD/- BANK

84o5e2a5e Ban1ing Ser!i:e2

.etai5 Ban1ing Ser!i:e2

(rodu:t2 and 2er!i:e2

Produ'ts of H/6C Ban+ are 'lassified into i$ Personal ban+in)

A;ard2 and re:ognition

Comparison of 8PAs -trate)( of these Ban+s

-OM(A.ISON ON THE BANKS ON BASIS O/ @(2

Ban1ing and Sa!ing2+

Ban1ing and Sa!ing2+

Ban1ing and Sa!ing2+

Ban1ing and Sa!ing2+

Ban1ing and Sa!ing2+

and -or)orate In2titutiona5

and -or)orate In2titutiona5

-or)orate In2titutiona5 and

-o'ial Ban+in) %ndustrial finan'e ser.i'es Trade finan'ial ser.i'es

Dor+in) Capital 6inan'e

1ife %nsuran'e Mutual 6unds Gold -hare Tradin)

and In!e2tment2 In2uran:e

In!e2tment2 In2uran:e and

and In!e2tment2 In2uran:e

1ife %nsuran'e Mutual 6unds Health Produ'ts Equit(

Health %nsuran'e Hospital 6inan'e Care

:< ATMs ith on :< ATMs,

ideas,repe',or) ansers,rupeetimes,'om en,i+ipedia,or)

,)oo)le,'o,in ,sbi)roup,'o,5p ***,i'i'iban+,'om