OBJECTIVE OF THE PROJECT

PRIMARY OBJECTIVES

To judge the business potentia !o" #HA$%A&MI BA$'(

To )o*pa"e p"odu)ts and se"+i)es o!!e"ed b, *ajo" P"i+ate Ban-s(

To judge the e+e o! )o*petition at spe)i!ied *a"-et a"ound . '*s( a"ea o! the b"an)h o!!i)e(

To judge the a/a"eness e+e o! #han a0*i Ban-(

SECO$#ARY OBJECTIVES To p"o*ote the p"odu)ts and se"+i)es o!!e"ed b, #han a0*i Ban-(

To in)"ease the a/a"eness e+e o! #han Ban-(

RESEARCH METHO#O%O1Y This section deals with the methodology employed to carry out the project. A well structured process is important for the successful execution of a good field work. It is important to develop good background information before actually interviewing the respondents.

2( Resea")h #esign34After analyzing problem statement and objectives of the study the design of research was set to be e0p o"ato", "esea")h(

5( Sa*p ing #esign34

SO6RCE %IST34the sample frame was drawn by short listing the markets around 5 ms. of branch.

SAMP%I$1 METHO#!"sampling techni#ue applied for conduction of the survey is $on P"obabi it, Sa*p ing( The units were selected on the basis of Con+enient Sa*p ing( $onvenience in terms of proximity% communication% interest of respondents was preferred.

7( #ATA CO%%ECTIO$34 PRIMARY #ATA CO%%ECTIO$

SECO$#ARY #ATA CO%%ECTIO$34&econdary data

is collected via internet% books% journals company website and brochures etc. which provided ade#uate information for comparative study of products and services offered by private banks.

%IMITATIO$S OF THE ST6#Y

Respondent $on Co4ope"ation 'any respondents were unwilling to disclose information about their banking and investment due to suspicion% lack of time% lack of interest. Re iabi it, o! Co*petito" #etai s 'ost of competitor details were gathered through secondary data sources other than linked directly to competitor. The data collected through these sources might not be reliable which can deviate the analysis results. Ti*e Sho"tage The project duration to be insufficient to attend to all the components of research problem. (ccasionally compromises over #uality and #uantity were made due to time acuteness.

RETAI% BA$'I$1
DEFINITION:

Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so

he )etail *anking environment today is changing fast. The changing customer demographics demands to create a differentiated application based on scalable technology% improved service and banking convenience. +igher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as so to ensure that the bank,s customer gets -.niformity and $onsistency/ of service delivery across time and at every touch point across all channels. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. +igh cost structure rendering mass"market servicing is prohibitively expensive. 0resent day tech"savvy bankers are now more looking at reduction in

their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve their client base and economies of scale. The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches 1 a multi" channel bank and to eliminate the disadvantage of an inade#uate branch network. 2eneration of leads to cross sell and creating additional revenues with utmost customer satisfaction has become focal point worldwide for the success of a *ank.

Toda,8s "etai ban-ing se)to" is )ha"a)te"i9ed b, th"ee basi) )ha"a)te"isti)s: 'ultiple products 3deposits% credit cards% insurance%

investments and securities4 'ultiple channels of distribution 3call center% branch% internet4 'ultiple customer groups 3consumer% small business% and corporate4.

STRATE1IES FOR I$CREASI$1 RETAI% BA$'I$1 B6SI$ESS

Constant

p"odu)t inno+ation to *at)h the "e:ui"e*ents o! the

)usto*e" seg*ents The customer database available with the banks is the best source of their demographic and financial information and can be used by the banks for targeting certain customer segments for new or modified product. The banks should come out with new products in the area of securities% mutual funds and insurance.

;ua it, se"+i)e and :ui)-ness in de i+e",

As most of the banks are offering retail products of similar nature% the customers can easily switchover to the one% which offers better service at comparatively lower costs. The #uality of service that banks offer and the experience that clients have% matter the most. +ence% to retain the customers% banks have to come out with competitive products satisfying the desires of the customers at the click of a button.

 Int"odu)tion o! ne/ de i+e", )hanne s

)etail customers like to interface with their bank through multiple channels. Therefore% banks should try to give high #uality service across all service channels like branches% Internet% AT's% etc.

Tapping o! une0p oited potentia

business

and in)"easing the +o u*e o!

This will compensate for the thin margins. The Indian retail banking market still remains largely untapped giving a scope for growth to the banks and financial institutions. 5ith changing psyche of Indian consumers% who are now comfortable with the idea of availing loans for their personal needs% banks have tremendous potential lying in this segment. 'arketing departments of the banks be geared up and special training be imparted to them so that banks are successful in grabbing more and more of retail business in the market.

In!"ast"u)tu"e outsou")ing
This will help in lowering the cost of service channels combined with #uality and #uickness.

 #etai

*a"-et "esea")h

*anks may go for detail market research% which will help them in knowing what their competitors are offering to their clients. This will enable them to have an edge over their competitors and increase their share in retail banking pie by offering better products and services.

C"oss4se

ing o! p"odu)ts

0&*s have an added advantage of having a wide network of branches% which gives them an opportunity to sell third"party products through these branches.

Business p"o)ess outsou")ing

(utsourcing of re#uirements would not only save cost and time but would help the banks in concentrating on the core business area. *anks can devote more time for marketing% customer service and brand building. 6or example% 'anagement of AT's can be outsourced. This will save the banks from dealing with the intricacies of technology.

 Tie4up a""ange*ents
0&*s with regional concentration can reap the benefit of reaching customers across the country by entering into strategic alliance with other such banks with intensive presence in other regions. In the present regime of falling interest and stiff competition% banks are aware that it is finally the retail banking which will enable them to hold the head above water. +ence% banks should make all out efforts to boost the retail banking by recognizing the needs of the customers. It is essential that banks would be imaginative in predicting the customers7 expectations in the ever"changing tastes and environments. It is the innovative and competitive products coupled with high #uality care for clients will only hold the key to success in this area. In short% bankers have to run very fast even to stay where they are now. It is the survival of the fastest now and not only survival of the fittest.

BA$'I$1 BASICS The Indian banking industry which is governed by the *anking )egulation Act of India% 89:9 can be broadly classified into two major categories. &cheduled *anks ;on"scheduled *anks

FI16RE342 STR6CTRE OF I$#IA$ BA$'I$1 I$#6STRY &cheduled banks comprise commercial banks and the co"operative banks. In terms of ownership commercial banks can be further grouped into nationalized banks% the &tate *ank of India and its group banks%

regional rural banks and private sector banks3old<new domestic and foreign4 *anking regulation act of India% 89:9 defines banking as <a))epting= !o" the pu"pose o! ending o" in+est*ent o! deposits o! *one, !"o* the pub i)= "epa,ab e on de*and o" othe"/ise and /ithd"a/ ab e b, )he:ues= d"a!t and o"de" o" othe"/ise(>

In addition% *anks are allowed to perform certain activities which are ancillary to this business of accepting deposits and lending. A bank,s relationship with the public% therefore% revolves around accepting deposit and lending money. Another activity which is assuming increasing importance is transfer of money% both domestic and foreign% from one place to another. This activity is generally known as -)emittance *usiness/ in banking parlance. The so called forex 3foreign exchange4 is largely a part of remittance. It involves buying and selling o=f foreign currencies. The law governing *anking Activities in India is called -;egotiable Instrument Act 8>>8/. The banking activities can be classified as!

Accepting deposits from public<others Transferring money from one place to another Acting as trustees eeping valuable in safe custody

$ollection business ?eposits @oans @ending money to public

HISTORY
*anking in India originated in the last decades of the 8>th century with The 2eneral *ank of India which came into existence in 8A>B. This was followed by The *ank of +industan. *oth of these are now defunct. The oldest bank in existence in India is the &tate *ank of India% which originated in the *ank of $alcutta 3later *ank of *engal4 in Cune 8>=B. A couple of decades late% foreign banks like $redit @yonnais started their $alcutta operations in 8>5=s. The first fully Indian owned bank was The Allahabad *ank% which was established in 8>B5.

*y the 89==s% the market expanded with the establishment of banks such as 0unjab ;ational *ank% in 8>95 in @ahore and *ank of India in 89=B% in 'umbai. *oth these were founded under private ownership. The )eserve *ank of India formally took on the responsibility of regulating the Indian banking sector from 89D5. After India,s independence in 89:A% the )eserve *ank of India was nationalized and given broader powers.

POST4I$#EPE$#E$CE

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal paraly!ing ban"ing activities for months# India$s independence mar"ed the end of a regime of the %aisse!&faire for the Indian ban"ing# The 'overnment of India initiated measures to play an active role in the economic life of the nation# This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included!

In 89:>% the )eserve *ank of India% India7s central banking authority% was nationalized% and it became an institution owned by the 2overnment of India. The *anking )egulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the )*I% and no two banks could have common directors.

+owever% despite these provisions% control and regulations% banks in India except the &tate *ank of India% continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 89th Culy 89B9.

$ATIO$A%I?ATIO$
*y the 89B=s% the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time% it had emerged as a large employer% and a debate had ensued about the possibility to nationalize the banking industry. The 0rime 'inister of India expressed the intention of the 2(I in the annual conference of the All India $ongress 'eeting in a paper entitled !Stray thoughts on "ank #ationali$ation.! After this% until the 899=s% the nationalized banks grew at a pace of around :E% closer to the average growth rate of the Indian economy.

%IBERA%ISATIO$
In the early 899=s% the then ;arsimha )ao government embarked on a policy of liberalization% licensing a small number of private banks. These came to be known as #ew %eneration tech-savvy banks% and included 2lobal Trust *ank 3the first of such new generation banks to be set up4% which later amalgamated with (riental *ank of $ommerce% Axis *ank3earlier as .TI *ank4% I$I$I *ank and +?6$ *ank# This move% along with the rapid growth in the economy of India% revitalized the banking sector in India% which has seen rapid growth with strong contribution from all the three sectors of banks% namely% government banks% private banks and foreign banks.

C6RRE$T SIT6ATIO$
$urrently% India has 9B scheduled commercial banks 3&$*s4 " FA public sector banks 3that is with the 2overnment of India holding a stake4% D8 private banks 3these do not have government stakeG they may be publicly listed and traded on stock exchanges4 and D> foreign banks. They have a combined network of over 5D%=== branches and :9%=== AT's. The industry is currently in a transition phase. (n the one hand% the 0ublic &ector *anks which are the mainstay of Indian banking system% are in the process of shedding their flab in terms of excessive manpower% excessive ;on 0erforming Assets 3;0As4 and excessive governmental e#uity% while on the other hand the private sector banks are consolidating themselves through mergers and ac#uisitions. 5ith he growth in the Indian economy which is expected to be strong for services sector% the demand for the banking services% especially retail banking% mortgages and investment services are expected to be strong. (ne may also expect mergers and ac#uisitions% takeovers and asset sales. *anking industry has completely moulded the system with some great technological developments and few revolutionary thoughts. Introduction of 'I& 3'A;A2H'H;T I;6()'ATI(; &I&TH'4% +)I& 3+.'A; )H&(.)$H I;6()'ATI(; &I&TH'4% H)0 &I&TH'& has made this system #uick and efficient. Investment is the part of services sector which is facing a tough competition these days. *oth the public and private sector banking institutions are the major players. The scenario which they have brought up in the market through their unpretentious hardworking and high #uality work% has made a cluster breaking entry in the era of competition.

TRA#ITIO$A% BA$'I$1 Traditionally the relationship between bank and its customer has been on a one"to"one level via the branch network. This was put into operation with clearing and design making responsibilities at the individual branch level. The head office had the responsibility for the overall clearing network% the size of the branch network and the training of staff in the branch network. The branch monitored the organizations performance and set the decision making parameters% but the information available to both branch and their customers was limited to one geographical location.

Custo*e"

Custo*e"

Custo*er

Ban- B"an)h C ea"ing #e)ision

Ban- B"an)h C ea"ing #e)ision

Ban- B"an)h C ea"ing #e)ision

Cent"a ) ea"ing

Cent"a ) ea"ing

FI16RE345 T"aditiona ban-ing st"u)tu"e

RE%ATIO$SHIP BA$'I$1 The modern bank cannot rely on its branch network alone. $ustomers are now demanding new% more convenient% delivery systems. And services such as internet banking have a dual role for the customer thus increasing the productivity of this sector. They provide traditional banking service% but additionally offer much greater access to information on their account and on the banks many other services. To do this banking has to create information layers% which can be accessed both by bank staff as well as by the customers themselves. The use of interactive electronic links via the internet can go a long way in providing the customers with greater deal of information about both their financial situation and about the services offered by the bank. FI16RE3474)H@ATI(;&+I0 *A; I;2

Custo*e"s

Te ephone= B"an)h= E e)t"oni) Ban-ing= et)(

Sha"ed In!o"*ation

C ea"ing s,ste*s

Head O!!i)e RisMonito"ing

COMPA$Y PROFI%E3
?hanalakshmi *ank @td was incorporated on 8:th ;ovember 89FA by a group of enterprising entrepreneurs at Thrissur city% the J$ultural $apital of eralaJ with a capital of )s 88%=== and A employees. It became a &cheduled $ommercial *ank in the year 89AA. It has now attained national stature with 8>8 branches and FB Hxtension $ounters spread over the states of erala% Tamil ;adu% arnataka% Andhra 0radesh% 'aharashtra% 2ujarat% ?elhi and 5est *engal. in F=8= they were started the six branch in 2ujaratKLadodata% Ahmedabad% Leraval% 0alanpur% *ardoliM

The ?hanalakshmi *ank has deployed technology widely as an instrument for enhancing the #uality of customer service. It has introduced $entralized *anking &olution 3$*&4 on the 6lexcube 0latform at all its branches for extending anywhere<anytime<anyhow banking to its clientele through multiple delivery channels. The bank has set"up a state"of"the"art ?ata $entre in *angalore% to keep the networked system operational round the clock. A ?isaster )ecovery $entre is also operational at Thrissur for meeting various contingencies.

Vision @ Mission
To be a*ongst the top . P"i+ate Se)to" Ban-s in te"*s o!

 Ban-8s Ba an)e sheet si9e P"o!its B"an)h net/o" Asset ;ua it, To be a a"ge p"o!itab e <A> "ated ban-(

A)hie+e*ents= A!!i iations and Mi estones A)hie+e*ents

&erviced business worth )s. >%F8F crores as on D8 'arch F==9% comprising deposits worth )s. :%9B9 crores and advances worth )s. D%F:5 crores.

Harned a net profit of )s. 5A.:5 crores for the financial year ended D8st 'arch F==9% with a capital ade#uacy ratio of 8:.::E during the same period.

0ut in place the )eal Time 2ross &ettlement 3)T2&4 and ;ational Hlectronic 6und Transfer 3;H6T4 systems to facilitate large value payments and settlements online in real time% on a transaction"by"transaction basis.

 &et up ;)I *outi#ues 3)elationship $entres4 across nine locations in erala and Tamil ;adu% with plans to open specialized ;)I outlets at potential locations with emphasis on impeccable service levels.

?ispensed 'icro $redit among private and public banks in erala% the *ank7s outstanding under micro credit was )s. 8F:.:= crores at the end of 'arch F==9.

Attained I&( 9==8"F=== certification for the *ank7s corporate office at Thrissur and industrial finance branch at ochi.

A!!i iations

Majo" E0)hange Houses

.AH Hxchange $entre @@$ Al Ahalia 'oney Hxchange *ureau

.AH Hxchange $entre 5@@

 Fo"eign Co""espondent Ban-s

?eutsche *ank Trust $ompany Americas 5achovia *ank ;A " A 5ells 6argo $ompany $ommerzbank A2 ;ational 5estminister *ank 0@$

Insu"an)e Pa"tne"
Bajaj A ian9

Mi estones
2A5B " 6ounded on 8: ;ovember% 89FA% at Thrissur% erala 2AB. " &et up the first branch outside the home state of erala% at $hennai 'ount )oad 2ABB " ?esignated as &cheduled $ommercial *ank by the )eserve *ank of India 3)*I4 2ACD " 8=="strong branch network 2ACE " Total business of )s. 8== crores 2AAE " 6irst public issue. Total business of )s. 8%=== crores 5DDD " Installed the first AT' 5DD5 " 6irst )ights Issue 5DD5 " 0latinum Cubilee year 5DDB " Total business of )s. 5%=== crores. >=th Anniversary year 5DDC" Total business of )s. A%5== crores. &econd )ights Issue

5DDA" Hxpanded branch network by FA branches. Total business of )s. 8=%=== crores

Finan)ia In) usion Initiati+es

&urpassed the )*I7s benchmark of priority sector lending of :=E by advancing )s. 8%8:> crores as on D8 'arch F==9% representing 5D.:>E.

&urpassed )*I7s recommended norm of 8>E advances with respect to agricultural credit by lending )s. 55A crores as on D8 'arch F==9% representing F8.:=E.

(utstanding of )s. FF.F9 crores were under weaker sections% representing 8=.D8E as against the )*I benchmark of 8=E as on D8 'arch =9.

(utstanding in the area of micro credit totalled )s. 8F5 crores as on D8 'arch F==9.

The number of &avings *ank accounts maintained by &elf +elp 2roups 3&+2s4 numbered F=%A:= while credit facilities availed by &+2s stood at )s. D5 crores as on D8 'arch F==9.

issan $redit $ards for )s. 5.=B crores were issued to 8%A8A farmers as at the end of 'arch F==9.

 (pened >D%=:B Nno"frills, accounts with outstanding of )s. FF.FF crores as on D8 'arch =9% as part of financial inclusion initiatives.

B6SI$ESS MI& OF #HA$%A&MI BA$'34

MICROIA1RI= 2 2F

B6S I$ES SMI& RETAI%= 27F

TA1= 2GF

HB1= E5F

RE TAI%

TA1

HB1

MICROI A1RI

1"aph345(2

*.&I;H&& 'IO (6 ?+A;@AO'I *A;

1"aph345(5 2H(2)A0+I$A@ *.&I;H&& 'IO (6 ?+A;@AO'I *A; STRATE1ICA% ASPECTS OF #HA$ BA$'34
2( MARCH TOHAR#S PA$ I$#IA E&PA$SIO$34

?hanalakshmi *ank @td. 3?hanbank4 has vision to be one of the top 5 Indian private banks in the near future. To attain this goal. ?hanbank has huge expansion plans to tap the potential lying in other places outside erala. ?hanbank is expected to open up BB new branches and D>9 new AT's in the current financial year. ?hanbank will convert its FB extension counters into full fledge branches in the current year% taking the total no. of branches to FAD in the current year. ?hanbank is expected to have :== branches P B== AT's by the end of 6IF=8="88.

1RAPH345(7 $ETHOR'I$1 A$A%YSIS

 ?hanbank has got a contract with a 2erman company% A2&% to handle its new AT' opening based on -only opex no capex/ model. As per this model% A2& would be responsible for setting up new AT's at strategic locations and to maintain the AT's. $ost incurred to ?hanbank would be on number of transactions ?hanbank has B5E of its branches in state of erala. (ut of the new branches few would be located in rural areas of erala and other would be mainly in 'aharashtra P 2ujarat P ;orthern areas% as these areas has the highest portion of deposits and loan off"take% from the total business of Indian banks. (pening of new rural branches would help ?hanbank to tap the huge potential lying in the rural areas. ?hanbank is expecting to add 9=="8=== accounts daily after achieving the FAD branches target. This would help to bring in more $A&A deposits.

5( B"and T"ans!o"*ation! ?hanbank is in process to strengthen its brand in the market. (gilvy P 'ather and 6itch have been appointed as marketing consultantsG this would help the bank to reach to the new customers and to strengthen its brand image in the market. ?hanbank has appointed (gilvy P 'ather as its agency for the banking business to chart out a new brand proposition and communication strategy. (P'% India,s leading communication agency will help the *ank to design and implement a comprehensive go"to market communication approach. The agency will help the *ank in its endeavor to create an entirely new customer experience and to incorporate a young and contemporary look across all customer touch"points. 7( Ma"gins heading no"th3 Improvement in margins might be seen in the near future on the basis of!

In)"ease in CASA! Increase in number of branches is expected to bring in 9== to 8=== accounts dailyG this would help to grow the $A&A deposits. ?hanbank targets to achieve $A&A of D=E in medium span of time. As $A&A deposits are low cost deposits this would lead to lower cost of deposits.

GRAPH:-2.4- INCREASE IN CASA

In)"ease in $RI deposits! At present out of the total deposits% the ;)I deposits are approx. BE. ?hanbank has its major presence in erala and this area has huge potential of ;)I deposits. ?hanbank plans to tap as much ;)I deposits as possible% as these are low cost deposits. A special ;)I deposit handling team is setup to tap this category of deposits . Yie d on In+est*ents! In 6IF==>"=9% yield on investments went down as ?hanbank had major holding in T"bills. ;ow ?hanbank plans to invest in the government securities% this is expected to increase the yield on investments% as the govt. securities yield better returns than T"bills. Rep"i)ing o! deposits to decrease cost of deposits! In the present low interest rate scenario% ?hanbank is to benefit from the repricing of deposits. This will decrease the cost. )epricing could continue benefiting bank up to 8 year. G( Ventu"e into ne/ business seg*ents3 6ee P $ommission based business would be the focus of ?hanbank. This category of income leads to higher )(H P H0& as it does not re#uire capital expenditure and it leads to regular stream of income. ?hanbank has taken various initiatives to increase its other income sources. 5ith the increasing number of branches and deeper reach to

retail clients would be a catalyst for the income from 6ee P commission based income. Insu"an)e dist"ibution! ?hanbank has got into a tie up with *ajaj Allianz for its @ife Insurance P general insurance product distribution. A special team of D== marketing officers is set"up for insurance distribution business. Mutua !und dist"ibution! As part of their wealth management% ?hanbank intends to distribute leading mutual fund schemes. 0rofessional would be joining for '6 product distribution and the bank would have a similar strategy as in case of its insurance distribution business. Othe" P"odu)ts! ?hanbank is expected to come up with new products like gold coins% Travelers che#ues% and forex services. The bank plans to offer Din8 account whereby the customer would be provided with the routine banking relationship 3&avings A<$4 along with ?emat A<$ and a trading platform. AMC! ?hanbank is planning to get into Asset 'anagement business. It is planning to enter the asset management business by buying into an existing fund% the investment is likely to be around )s85"F= $r. to buy stake in an existing A'$. Ventu"e Capita 3 The bank is also looking at setting up a wholly" owned venture capital firm soon. *ank would put in about )s.F=== $r. in L$ to invest in new start ups. The expected annual return from L$ business is approx. F5E. PRO#6CT S6ITE34 6ollowing chart shows the various products and services offered by #HA$ %A&MI BA$'4

Figu"e3454 0)(?.$T &.ITH (6 ?+A; *A; PRO#6CTS A$# SERVICES OF #HA$ BA$'34 2(Pe"sona Ban-ing

A))ounts3" &aving Account $urrent Account% Term ?eposit %oans3"0ersonal @oans% +ome @oans% Auto @oans% (ther @oans #eposito", Se"+i)es %o)-e" Fa)i ities Fo"e0 Se"+i)es34 6oreign $urrency $ash% $he#ue ?eposits% 6oreign $urrency ??% )emittances.

5(Co"po"ate Ban-ng

Cash Manage*ent 3$'&4 C"edit!" Industrial Advance% Trade Advance% Import Hxport% Agriculture Assistance Sa a", A))ount Fo"e0 @ T"ade3"6orex &ervices% Hxport &ervices% Import &ervices 7($RI Ban-ing

A))ounts @ #eposits34 ;)H Account= ;)( Account= )ecurring P T?= 6$;)I 6?= )eturning ;)Is Mone, T"ans!e"34?raft ?rawing= )upee ?rawing= 'oney Transfer= (verseas $orresp. $RI Ho*e %oan In+est*ents340ortfolio= )epatriation= ;on"repatriation% Immovable properties. G( Mi)"o @ Ag"i Ban-ing

#hana* 'issan Vahana 'issan Ca"d Ag"i go d %oan Mi)"o C"edit 4 MFI Mi)"o C"edit 4 SH1s

.( Finan)ia P anning

TAB%E35(24COMPARISO$ OF RETAI% PRO#6CT FEAT6RES34

TAB%E345(54COMPARISO$ OF SERVICES OFEERE# S($ FEAT6R o( E

2 AVERA1E MO$TH%Y BA%A$CE #EBIT CAR# FACI%ITY MOBI%E BA$'I$1 RT1SI$EF T CO%%ECTI O$ OF O6TSTATI O$ CHE;6ES #ERMA$# #RAFT I$TER$ET BA$'I$1 SA%ARY ACCO6$T SHEEP I$ A$# AHEEP O6T FACI%ITY STOP PAYME$T PAY OR#ERS BI%% PAYI$1 FACI%ITY I$TEREST O$ FI&E# #EPOSIT FOR %ESS THA$ 2(. YR A$Y BRA$CH BA$'I$1

ICICI BA$'
VARY AS PER PRO#6CT FREE CHAR1EAB %E O$ CHAR1E BASIS Rs( .D PER CHE;6E

H#FC BA$'
VARY AS PER PRO#6CT FREE CHAR1EA B%E O$ CHAR1E BASIS Rs( .D PER CHE;6E

A&IS BA$'
VARY AS PER PRO#6CT FREE CHAR1EAB %E O$ CHAR1E BASIS Rs( .D PER CHE;6E

YES BA$'
VARY AS PER PRO#6C T FREE CHAR1E AB%E O$ CHAR1E BASIS Rs( .D PER CHE;6E AS PER RBI $ORMS FREE YES $O

#HA$%A& MI
VARY AS PER PRO#6CT FREE FREE BOTH .4. FREE PER MO$TH FREE . O6TSTATIO$ CHE;6ES PER MO$TH . #(#( FREE PER MO$TH FREE YES YES=FREE

5 7 G .

E B C A

AS PER RBI $ORMS FREE YES I$ SOME ACCO6$TS

AS PER RBI $ORMS FREE YES $O

AS PER RBI $ORMS FREE YES $O

2D 22

CHAR1EAB %E CHAR1EAB %E AS PER $ORMS YES BF

CHAR1EA B%E CHAR1EA B%E AS PER $ORMS YES B(.F

CHAR1EAB %E CHAR1EAB %E AS PER $ORMS YES B(5.F

CHAR1E AB%E CHAR1E AB%E AS PER $ORMS YES BF

FREE TO SOME E&TE$T .45. P( O (FREE PER MO$TH YES B(B.F

25 27

2G

YES

YES

YES

YES

YES

S($ o(
2

FEAT6RE
M6T6A% F6$# I$VESTME$T 1E$ERA% I$S6RA$CE %IFE I$S6RA$CE $RI BA$'I$1 A1RI BA$'I$1 HOME %OA$S CORPORATE %OA$S OTHER CRE#IT SERVICES C6STOMER CARE #EPARTME$ T CRE#IT CAR# FACI%ITY O$%I$E TRA#I$1

ICICI BA$'
YES=ICICI #Y$AMIC=IC ICI 1ROHTH et)( ICICI %OMBAR# ICICI %IFE I$S6RA$CE YES YES YES YES YES YES

H#FC BA$'
YES=H#FC TOP 5DD

A&IS BA$'
YES

YES BA$'
YES

#HA$%A&MI
THIR# PARTY PRO#6CTS

5 7 G . E B C A

YES YES YES YES YES YES YES YES

YES YES YES YES YES YES YES YES

YES YES YES YES YES YES YES YES

THIR# PARTY PRO#6CTS THIR# PARTY PRO#6CTS YES O$%Y I$ SO6TH I$#IA O$%Y I$ SO6TH I$#IA YES O$%Y I$ SO6TH I$#IA YES

2D 22

YES YES

YES YES

YES YES

YES YES

O$%Y I$ SO6TH I$#IA YES= I$ A%%IA$CE HITH #ESTIMO$EY SEC6RITIES %T#( YES YES

25 27

I$TER$ET BA$'I$1 MOBI%E BA$'I$1

YES YES

YES YES

YES YES

YES YES

COMPETITOR A$A%YSIS AT A 1%A$CE34

S($o( FEAT6RE
2 5 7 BRA$CHES ATM MAR'ET CAPITA%I?ATI O$ I$ CRORE Rs( TOTA% ASSETS $ET SA%ES I$ CRORE Rs( JRECE$TK $ET PROFIT I$ CRORE Rs( JRECE$TK

ICICI BA$'
2.GG GC2E 2DD=2CD(DD

H#FC BA$'
2B5. G575 AG=AG5(55

A&IS BA$'
AD. 7CAG .5AAE(DG

YES BA$'
2.D 52E ABE5(DG

#HA$%A &MI
5B7 G.7 22GA(5B

G . E

5CE=D.A(BB 5.=BDE(A7 GD5G(AC

27A=D22(7 A 2E=775(5E 55GG(AG

2.E=BGC(7. 22=E7C(D5 5.2G(.7

72=ECC(CA 5=7EA(B2 GBB(BG

E=BA.(D5 .7G(.B 57(7D

Tab e34 5(7

MAR'ET SHARE A$A%YSIS34 Fo o/ing tab e "ep"esents the )u""ent *a"-et )apita i9ation o! di!!e"ent p"i+ate )o**e")ia ban-s(
$AME OF COMPA$Y MAR'ET CAPITA%I?ATIO$ In crore )s. 8==%8>=.== 9:%9:F.FF 5F%99B.=: 9%AF.=: 88:9.FA BD95F.8B DFF9>8.AD PERCE$TA1E D8E F9E 8BE DE .=DE F=.9AE 8==E

ICICI H#FC A&IS YES #HA$%A&MI OTHERS TOTA% Tab e345(G

MAR'ET SHARE A$A% YSISO$ THE BASISOF MAR'ET CAPIT A%I?ATIO$

72F 5AF

5D(ABF 7F 2EF

#HA$%A&MI= D(D7 I$I$I F +?6$ AOI&

I H &

?+A;@AO'I

(T+H ) &

1"aph34 5(.4MAR'ET SHARE A$A%YSIS I$I$I is the market player of private commercial bank segment with highest market share of D8E. +?6$ and AOI& bank are market followers with F9E P 8BE market share respectively. ?hanlaxmi has very low market share in the segment 3Q=.=DE4% rest F=E share is from others including I;?.&I;? *A; % *A; (6 )ACA&T+A;% (TA 'A+I;?)A% 6H?H)A@ *A; % A);ATA A *A;

S6MMARY OF FI$#I$1S A$# S611ESTIO$S34 FI$#I$1S34

As per the survey conducted% it is to be noticed a good sector of the people prefer to be customers of nationalized banks. This result can be very well explained by the fact that nationalized banks are ac#uainted with the 2overnment and that ups and downs in business will not affect the existence of the bank. Also the )*I too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. +owever it is also seen that a good percentage of people also opt for private banks such as I$I$I% +?6$% AOI& bearing in mind the amount of experience they posses in the field of banking.

&urvey results show that customers from private sector banks are more satisfied as compared to customers from public sector banks. it was found that there is a direct relationship between brand image<product differentiation and satisfaction of the customer.

$ustomer demographic plays important role while preparing penetration strategies.

?hanlaxmi has the retail products with uni#ue features which others don,t have% but some of the services it is selling in alliance with third parties.

 'arket share of ?han *ank is not so high as compared to I$I$I%+?6$%AOI& and IH& *A; .

S611ESTIO$S34

The bank should introduce new delivery channels via opening more branches and AT's in many cities to improve network efficiency. . Hffective advertisement campaign can help the bank to increase business in many cities. TL commercials% +oardings posters can be some of the mediums to increase the awareness of *ank.

*ank should launch the whole product line in Caipur to emerge its position in competition.

*ank should target 5 km area around the branch office because survey depicts that most of the customers selected their bank on the basis of proximity.

*ank should constantly innovate their products as per customer re#uirements.

 ?hanlaxmi *ank should maintain the consistency in service #uality for total customer satisfaction.

BIB%IO1RAPHY34 HEBSITES34

www.dhanbank.com www.moneycontroll.com

www.finance.india.mart.com www.banknetindia.com www.rbi.org

www.moneycontrol.com www.google.com

BOO'S= JO6R$A%S34 $('0A;I *)($+.)H& A;;.A@ )H0()TH& (6 ?+A; *A; *.&I;H&& H$(;('I$& C(.);A@

(T+A)I% $. ). %)H&HA)$+ 'HT+(?(@(2I

$+A.?+A)I%$.'.% )H&HA)$+ 'HT+(?(@(2I

Se e)tion P"o)ess at #han a0*i BanTo improve the selection process for recruitment at all levels in ?hanlaxmi *ank% they have carried out an in"depth study of the competencies re#uired to succeed in ?hanlaxmi *ank. As per ?hanlaxmi research% the competencies which indicated success at the entry level in ?hanlaxmi *ank are! ?rive for results 0rocess (rientation Interpersonal Hffectiveness Analytical Thinking Innovation P Team Hffectiveness

Re)"uit*ent and Se e)tion P"o)ess in #han a0*i Ban*oth recruitment and selection are the two phases of the employment process. The differences between the two are! 2( )ecruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation 5+H)HA& selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts. 5( The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation% by attracting more and more employees to apply in the

organisation 5+H)HA& the basic purpose of selection process is to choose the right candidate to fill the various positions in the organisation. 7( )ecruitment is a positive process i.e. encouraging more and more employees to apply 5+H)HA& selection is a negative process as it involves rejection of the unsuitable candidates. G( )ecruitment is concerned with tapping the sources of human resources 5+H)HA& selection is concerned with selecting the most suitable candidate through various interviews and tests. .( There is no contract of recruitment established in recruitment 5+H)HA& selection results in a contract of service between the employer and the selected employee.

Sha"eho ding patte"n 4 #han a0*i Ban- %td(

+older7s ;ame (ther$ompanies 2eneral0ublic 6oreignInstitutions 6oreign;)I ;*anks'utual6unds 6inancialInstitutions (thers

;o of &hares 85=DF>:F DDF=>>>9 F9A5AD59 58DBBAD 889858= 59:>D: F8:F8F

E &hare +olding 8A.BBE D9.=8E D:.95E B.=DE 8.:=E =.A=E =.F5E

I$#IA$ FI$A$CIA% SYSTEM

The economic development of a nation is reflected by the progress of the various economic units% broadly classified into corporate sector% government and household sector. 5hile performing their activities these units will be placed in a surplus<deficit<balanced budgetary situations. There are areas or people with surplus funds and there are those with a deficit. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A 6inancial &ystem is a composition of various institutions% markets% regulations and laws% practices% money manager% analysts% transactions and claims and liabilities. Finan)ia S,ste*L

The word JsystemJ% in the term Jfinancial systemJ% implies a set of complex and closely connected or interlined institutions% agents% practices% markets% transactions% claims% and liabilities in the economy. The financial system is concerned about money% credit and finance"the

three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market% financial instruments and financial intermediation. These are briefly discussed belowG FI$A$CIA% MAR'ETS A 6inancial 'arket can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services% a financial transaction involves creation or transfer of a financial asset. 6inancial Assets or 6inancial Instruments represents a claim to the payment of a sum of money sometime in the future and <or periodic payment in the form of interest or dividend. Mone, Ma"-et" The money market ifs a wholesale debt market for low" risk% highly"li#uid% short"term instrument. 6unds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government% banks and financial institutions. Capita Ma"-et " The capital market is designed to finance the long" term investments. The transactions taking place in this market will be for periods over a year. Fo"e0 Ma"-et " The 6orex market deals with the multicurrency re#uirements% which are met by the exchange of currencies. ?epending on the exchange rate that is applicable% the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe. C"edit Ma"-et" $redit market is a place where banks% 6Is and ;*6$s purvey short% medium and long"term loans to corporate and individuals.
Constituents of a Financial System

FI$A$CIA% I$TERME#IATIO$ +aving designed the instrument% the issuer should then ensure that these financial assets reach the ultimate investor in order to garner the re#uisite amount. 5hen the borrower of funds approaches the financial market to raise funds% mere issue of securities will not suffice. Ade#uate information of the issue% issuer and the security should be passed on to take place. There should be a proper channel within the financial system to ensure such transfer. To serve this purpose% Finan)ia inte"*edia"ies came into existence. 6inancial intermediation in the organized sector is conducted by a widerange of institutions functioning under the overall surveillance of the )eserve *ank of India. In the initial stages% the role of the intermediary was mostly related to ensure transfer of funds from the lender to the borrower. This service was offered by banks% 6Is% brokers% and dealers. +owever% as the financial system widened along with the developments taking place in the financial markets% the scope of its operations also widened. &ome of the important intermediaries operating ink the financial markets includeG investment bankers% underwriters% stock exchanges% registrars% depositories% custodians% portfolio managers% mutual funds% financial advertisers financial consultants% primary dealers% satellite dealers% self regulatory organizations% etc. Though the markets are different% there may be a few intermediaries offering their services in move than one market e.g. underwriter. +owever% the services offered by them vary from one market to another. Inte"*edia", Ma"-et Ro e

&tock Hxchange

$apital 'arket

&econdary securities

'arket

to

Investment *ankers

$orporate $apital 'arket% $redit services% 'arket securities

advisory Issue of

.nderwriters

&ubscribe to $apital 'arket% 'oney unsubscribed portion of 'arket securities Issue securities to the investors on behalf of the company and handle share transfer activity 'arket making in government securities Hnsure exchange ink currencies

)egistrars% ?epositories% $ustodians

$apital 'arket

0rimary ?ealers 'oney 'arket &atellite ?ealers 6orex ?ealers 6orex 'arket

Finan)ia Institutions

Industrial ?evelopment *ank of India 3I?*I4 Industrial 6inance $orporation of India 3I6$I4 Hxport " Import *ank of India 3Hxim *ank4

Industrial )econstruction *ank of India 3I)*I4 now 3Industrial Investment *ank of India4

;ational *ank for Agriculture and )ural ?evelopment 3;A*A)?4 &mall Industries ?evelopment *ank of India 3&I?*I4 ;ational +ousing *ank 3;+*4 .nit Trust of India 3.TI4 @ife Insurance $orporation of India 3@I$4 2eneral Insurance $orporation of India 32I$4 )isk $apital and Technology 6inance $orporation @td. 3)$T$4 Technology ?evelopment and Information $ompany of India @td. 3T?I$I4

Tourism 6inance $orporation of India @td. 3T6$I4 &hipping $redit and Investment $ompany of India @td. 3&$I$I4 ?iscount and 6inance +ouse of India @td. 3?6+I4

Manage*ent @ O"gani9ation

CONCLUSION
The banking industry in India is facing the challenges on deposit mobilization front% because of the severe competition from various financial institutions and public corporations. ?hanlaxmi *ank today services a growing customer base of more than 5 million customer accounts through a multi"channel access network. They believe in customer satisfaction in every possible way. They are focused on #uality of products and services rather than #uantity of products and services. This project has given me an insight as to how *ank should market their products in the right way by overcoming all the difficulties like a suitable location% advertising etc.

PREFACE
The student of B.B.A. 5th Sem. (1st batch) has to undergo project Report as a part of their academic Course. The Employment Opportunity for Management Student in the Banking Sector is a part of this project. The main purpose of undergoing such a searching is to kno opportunit# in $han"a%mi bank. The searching "a%mi Bank a"ong fie"d searching as conduct of the $han "a%mi Bank ebsite. This report presents the introduction of management profi"e of $han ith "imitation& suggestion and conc"usion. The ith he"p of persona" information of as conduct the training ! p"acement

$han "a%mi Bank through the 'nternet.

DECLARATION BY THE CANDIDATE

?ateRRRR.

I declare that the Project report Entitled Employment Opportunity for Management Student in the Banking Sector is my own work conducted under the Supervision of MRS . SHIKHA URMIL KHAN Lecturer, Department of Business Management, ovt! "utonomous irls P #ollege of E$cellence, Sagar! %o the &est of my knowledge the report does not my work, which has &een su&mitted for the award of any degree, anywhere!

Signature of Candidate URMILA PANDEY

BBA 5 TH Semester

ACKNOWLEDGEMENT

I would like to pay my sincere thank to DR. ANAND TIWARI Head of Department, ovt! "utonomous irls P #ollege of E$cellence, Sagar for providing me with the opportunity of doing the project 'eport! %his report is &ased on Employment Opportunity for Management Student in the Banking Sector which I will an asset through out my life!

"t last I would like to thank all staff mem&ers of my department, parents and friends for their kind support and suggestions!

URMILA PANDEY
BBA 5 TH Semester

CERTIFICATE

?ATHRRRR

%he period report title Employment Opportunity for Management Student in the Ban ing Se!tor"# prepared &y $RMI%A &ANDE' under the guidance and supervision of MRS . SHIKHA URMIL KHAN Lecturer, Department of Business Management, ovt! "utonomous irls P #ollege of E$cellence,

Sagar for the partial fulfillment of the degree of Bachelor of Business "dministration is satisfactory!

Signature of Supervisor

Signature of H.O.D.

Signature of E!a"iner