TABLE OF CONTENT

S.NO

CONTENTS

PAGE NO.

01

INTRODUCTION

03

02

COMPANY PROFILE

07-19

03

ABOUT CREDIT CARD

20-45

04

OBJECTIVE OF THE STUDY

46

05

RESEARCH METHODOLOGY

49-54

06

DATA ANALYSIS & INTERPRETATION

54-67

07

FINDINGS

68

08

SUGGESTION

71

09

CONCLUSION

72

10

BIBLIOGRAPHY

74

11

ANNEXURE

76

CHAPTER NO-01

INTRODUCTION

CONSUMER BEHAVIOUR
Consumer behaviour is the study of when, why, how, and where people do or
do not buy product. It blends elements from psychology, sociology, social
anthropology and economics. It attempts to understand the buyer decision
making process, both individually and in groups. It studies characteristics of
individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in
general. Customer behaviour study is based on consumer buying behaviour,
with the customer playing the three distinct roles of user, payer and buyer.
Relationship marketing is an influential asset for customer behaviour analysis as
it has a keen interest in the re-discovery of the true meaning of marketing
through the re-affirmation of the importance of the customer or buyer. A greater
importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social
functions can be categorized into social choice and welfare functions. Each
method for vote counting is assumed as a social function but if Arrows
possibility theorem is used for a social function, social welfare function is
achieved. Some specifications of the social functions are decisiveness,
neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and
strong Pareto optimality. No social choice function meets these requirements in
an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a
logical relation with the ranks. Marketing provides services in order to satisfy
customers. With that in mind, the productive system is considered from its
beginning at the production level, to the end of the cycle, the consumer
(Kioumarsi et al., 2009).

Belch and Belch define consumer behaviour as 'the process and activities people
engage in when searching for, selecting, purchasing, using, evaluating, and
disposing of products and services so as to satisfy their needs and desires'.'

Black box model

ENVIRONMENTAL

BUYER'S BLACK BOX

FACTORS
Marketing Environmental Buyer
Decision
Stimuli

Stimuli

BUYER'S
RESPONSE

Characteristics Process
Problem
recognition

Economic

Attitudes

Information

Product

Technological

Motivation

search

Price

Political

Perceptions

Alternative

Place

Cultural

Personality

evaluation

Promotion

Demographic

Lifestyle

Purchase

Natural

Knowledge

decision
Post-purchase

Product choice
Brand

choice

Dealer

choice

Purchase
timing
Purchase
amount

behaviour
The black box model shows the interaction of stimuli, consumer characteristics,
decision process and consumer responses. It can be distinguished between
interpersonal stimuli (between people) or intrapersonal stimuli (within people).
The black box model is related to the black box theory of behaviourism, where
the focus is not set on the processes inside a consumer, but the relation between
the stimuli and the response of the consumer. The marketing stimuli are planned
and processed by the companies, whereas the environmental stimulus are given
by social factors, based on the economical, political and cultural circumstances
of a society. The buyers black box contains the buyer characteristics and the
decision process, which determines the buyers response.
4

The black box model considers the buyers response as a result of a conscious,
rational decision process, in which it is assumed that the buyer has recognized
the problem. However, in reality many decisions are not made in awareness of a
determined problem by the consumer.
Information search
Once the consumer has recognised a problem, they search for information on
products and services that can solve that problem. Belch and Belch (2007)
explain that consumers undertake both an internal (memory) and an external
search.
Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information

search is perception. Perception is defined as 'the process by which an
individual receives, selects, organises, and interprets information to create a
meaningful picture of the world'
The selective perception process
Stage Description
- Selective exposure consumers select which promotional messages they will
expose themselves to.
- Selective attention consumers select which promotional messages they will
pay attention to

- Selective comprehension consumer interpret messages in line with their

beliefs, attitudes, motives and experiences
-Selective retention consumers remember messages that are more meaningful or
important to them
The implications of this process help develop an effective promotional strategy,
and select which sources of information are more effective for the brand.CV
Information evaluation
At this time the consumer compares the brands and products that are in their
evoked set. How can the marketing organization increase the likelihood that
their brand is part of the consumer's evoked (consideration) set? Consumers
evaluate alternatives in terms of the functional and psychological benefits that
they offer. The marketing organization needs to understand what benefits
consumers are seeking and therefore which attributes are most important in
terms of making a decision.
Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a
purchase decision. Sometimes purchase intention does not result in an actual
purchase. The marketing organization must facilitate the consumer to act on
their purchase intention. The organisation can use variety of techniques to
achieve this. The provision of credit or payment terms may encourage purchase,
or a sales promotion such as the opportunity to receive a premium or enter a
competition may provide an incentive to buy now. The relevant internal
psychological

process

that

is

associated

with

purchase

decision

is

integration.Once the integration is achieved, the organisation can influence the

purchase decisions much more easily.

Postpurchase evaluation
It is common for customers to experience concerns after making a purchase
decision. This arises from a concept that is known as cognitive dissonance.
The customer, having bought a product, may feel that an alternative would have
been preferable. In these circumstances that customer will not repurchase
immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to
persuade the potential customer that the product will satisfy his or her needs.
Then after having made a purchase, the customer should be encouraged that he
or she has made the right decision.it is not effected by advertisement.
Internal influences
Consumer behaviour is influenced by: demographics, psychographics
(lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings.
consumer behaviour concern with consumer need consumer actions in the
direction of satisfying needs leads to his behaviour of every individuals depend
on thinking
External influences
Consumer behaviour is influenced by: culture,sub-culture, locality, royalty,
ethnicity, family, social class, reference groups, lifestyle, and market mix
factors.
Consumer behavior involves the psychological processes that consumers go
through in recognizing needs, finding ways to solve these needs, making
purchase decisions (e.g., whether or not to purchase a product and, if so, which
brand and where), interpret information, make plans, and implement these plans
(e.g., by engaging in comparison shopping or actually purchasing a product).

Sources of influence on the consumer. The consumer faces numerous sources

of influence.

Often, we take cultural influences for granted, but they are significant. An
American will usually not bargain with a store owner. This, however, is a
common practice in much of the World. Physical factors also influence our
behavior. We are more likely to buy a soft drink when we are thirsty, for
example, and food manufacturers have found that it is more effective to
advertise their products on the radio in the late afternoon when people are
getting hungry. A persons self-image will also tend to influence what he or she
will buyan upwardly mobile manager may buy a flashy car to project an
image of success. Social factors also influence what the consumers buyoften,
consumers seek to imitate others whom they admire, and may buy the same
8

brands. The social environment can include both the mainstream culture (e.g.,
Americans are more likely to have corn flakes or ham and eggs for breakfast
than to have rice, which is preferred in many Asian countries) and a subculture
(e.g., rap music often appeals to a segment within the population that seeks to
distinguish

itself

from

the

mainstream

population).

Thus,

sneaker

manufacturers are eager to have their products worn by admired athletes.

Finally, consumer behavior is influenced by learningyou try a hamburger and
learn that it satisfies your hunger and tastes good, and the next time you are
hungry, you may consider another hamburger.
Consumer Choice and Decision Making: Problem Recognition. One model
of consumer decision making involves several steps. The first one is problem
recognitionyou realize that something is not as it should be. Perhaps, for
example, your car is getting more difficult to start and is not accelerating well.
The second step is information searchwhat are some alternative ways of
solving the problem? You might buy a new car, buy a used car, take your car in
for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step
involves evaluation of alternatives. A skateboard is inexpensive, but may be illsuited for long distances and for rainy days. Finally, we have the purchase
stage, and sometimes a post-purchase stage (e.g., you return a product to the
store because you did not find it satisfactory). In reality, people may go back
and forth between the stages. For example, a person may resume alternative
identification during while evaluating already known alternatives.
Consumer involvement will tend to vary dramatically depending on the type of
product. In general, consumer involvement will be higher for products that are
very expensive (e.g., a home, a car) or are highly significant in the consumers
life in some other way (e.g., a word processing program or acne medication).
It is important to consider the consumers motivation for buying products. To
achieve this goal, we can use the Means-End chain, wherein we consider a
9

logical progression of consequences of product use that eventually lead to

desired end benefit. Thus, for example, a consumer may see that a car has a
large engine, leading to fast acceleration, leading to a feeling of performance,
leading to a feeling of power, which ultimately improves the consumers selfesteem. A handgun may aim bullets with precision, which enables the user to
kill an intruder, which means that the intruder will not be able to harm the
consumers family, which achieves the desired end-state of security. In
advertising, it is important to portray the desired end-states. Focusing on the
large motor will do less good than portraying a successful person driving the
car.

Information search and decision making. Consumers engage in both internal

and external information search. Internal search involves the consumer
identifying alternatives from his or her memory. For certain low involvement
products, it is very important that marketing programs achieve top of mind
awareness. For example, few people will search the Yellow Pages for fast food
restaurants; thus, the consumer must be able to retrieve ones restaurant from
memory before it will be considered.

For high involvement products,

consumers are more likely to use an external search. Before buying a car, for
example, the consumer may ask friends opinions, read reviews in Consumer
Reports, consult several web sites, and visit several dealerships. Thus, firms
10

that make products that are selected predominantly through external search must
invest in having information available to the consumer in neede.g., through
brochures, web sites, or news coverage.

A compensatory decision involves the consumer trading off good and bad
attributes of a product. For example, a car may have a low price and good gas
mileage but slow acceleration. If the price is sufficiently inexpensive and gas
efficient, the consumer may then select it over a car with better acceleration that
costs more and uses more gas. Occasionally, a decision will involve a noncompensatory strategy. For example, a parent may reject all soft drinks that
contain artificial sweeteners. Here, other good features such as taste and low
calories cannot overcome this one non-negotiable attribute.

11

CHAPTER NO-02

COMPANY

12

ABOUT US
State Bank of India welcomes you to explore the world of premier bank in
India.
In this section, you can access detailed information on Overview of the Bank,
Technology Upgradation in the Bank, Board of Directors, Financial Results and
Shareholder Info.
The Bank is actively involved since 1973 in non-profit activity called
Community Services Banking. All our branches and administrative offices
throughout the country sponsor and participate in large number of welfare
activities and social causes. Our business is more than banking because we
touch the lives of people anywhere in many ways.
Our commitment to nation-building is complete & comprehensive.
TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the countrys oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is
today going through a momentous phase of Change and Transformation the
two hundred year old Public sector behemoth is today stirring out of its Public
Sector legacy and moving with an agility to give the Private and Foreign Banks
a run for their money.
The bank is entering into many new businesses with strategic tie ups Pension
Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,
Point of Sale Merchant Acquisition, Advisory Services, structured products etc
each one of these initiatives having a huge potential for growth.
The Bank is forging ahead with cutting edge technology and innovative new
banking models, to expand its Rural Banking base, looking at the vast untapped

13

potential in the hinterland and proposes to cover 100,000 villages in the next
two years.
It is also focusing at the top end of the market, on whole sale banking
capabilities to provide Indias growing mid / large Corporate with a complete
array of products and services. It is consolidating its global treasury operations
and entering into structured products and derivative instruments. Today, the
Bank is the largest provider of infrastructure debt and the largest arranger of
external commercial borrowings in the country. It is the only Indian bank to
feature in the Fortune 500 list.
The Bank is changing outdated front and back end processes to modern
customer friendly processes to help improve the total customer experience.
With about 8500 of its own 10000 branches and another 5100 branches of its
Associate Banks already networked, today it offers the largest banking network
to the Indian customer. The Bank is also in the process of providing complete
payment solution to its clientele with its over 8500 ATMs, and other electronic
channels such as Internet banking, debit cards, mobile banking, etc.
With four national level Apex Training Colleges and 54 learning Centres spread
all over the country the Bank is continuously engaged in skill enhancement of
its employees. Some of the training programes are attended by bankers from
banks in other countries.
The bank is also looking at opportunities to grow in size in India as well as
Internationally. It presently has 82 foreign offices in 32 countries across the
globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP
Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a
formidable group in the Indian Banking scenario. It is in the process of raising
capital for its growth and also consolidating its various holdings.
Throughout all this change, the Bank is also attempting to change old mindsets,
attitudes and take all employees together on this exciting road to
Transformation. In a recently concluded mass internal communication
programme termed Parivartan the Bank rolled out over 3300 two day
14

workshops across the country and covered over 130,000 employees in a period
of 100 days using about 400 Trainers, to drive home the message of Change and
inclusiveness. The workshops fired the imagination of the employees with some
other banks in India as well as other Public Sector Organizations seeking to
emulate the programme.
The CNN IBN, Network 18 recognized this momentous transformation
journey, the State Bank of India is undertaking, and has awarded the prestigious
Indian of the Year Business, to its Chairman, Mr. O. P. Bhatt in January 2008.
INVESTOR RELATIONS
State Bank of India, the countrys largest commercial Bank in terms of profits,
assets, deposits, branches and employees, welcomes you to its Investors
Relations Section. SBI, with its heritage dating back to the year 1806, strives to
continuously provide latest and upto date information on its financial
performance. It is our endeavor to walk on the path of transparency and allow
complete access to all the stakeholders enabling total awareness about the Bank.
The Bank communicates with the stakeholders through a variety of channels,
such as through e-mail, website, conference call, one-on-one meeting, analysts
meet and attendance at Investor Conference throughout the world.
Please find below Banks financial results, analysis of performance and other
highlights which will be of interest to Investors, Fund Managers and Analysts.
SBI has always been fundamentally strong in its core business which is
mirrored in its results year after year.

15

Our commitment to nation-building is complete & comprehensive.

Central Board of State Bank of India
(As on 13th May 2009)
Sr. No. Name of Director
Shri O.P. Bhatt
1.
Chairman
Shri S.K. Bhattacharyya
2.
MD & CC&RO
Shri R. Sridharan
3.
MD & GE(A&S)
4.
Dr. Ashok Jhunjhunwala
5.
Shri Dileep C. Choksi
6.
Shri S. Venkatachalam
7.
Shri. D. Sundaram
8.
Dr. Deva Nand Balodhi
9.
Prof. Mohd. Salahuddin Ansari
10.
Dr.(Mrs.) Vasantha Bharucha
11.
Dr. Rajiv Kumar
12.
Shri Ashok Chawla
13.
Smt. Shyamala Gopinath

Sec. of SBI Act, 1955

19(a)
19(b)
19(b)
19(c)
19(c)
19(c)
19(c)
19(d)
19(d)
19(d)
19(d)
19(e)
19(f)

PERSONAL BANKING
Welcome to SBI's Retail Banking
State Bank of India offers a wide range of services in the Personal Banking
Segment which are indexed here.

16

Our products are designed with flexibility to suit your personal requirements.
Enjoy 24 hour facility through our ATMs - growing speedily it has crossed the
5000 mark Watch this space for more details.
SBI Term Deposits

SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan

Loan Against Shares & Debentures

SBI Car Loan

Rent Plus Scheme

SBI Educational Loan

Medi-Plus Scheme

SBI Personal Loan

Rates Of Interest

Experience a whole new world of banking at our newly opened Personal

Banking Branches (PBBs)- often dubbed boutique branches by others.
Customer friendly knowledgeable staff will cater to your financial requirements
with speed and efficiency. Do visit one and find out for yourself. for addresses
of our PBBs.

DEPOSIT SCHEMES
Whatever your needs - an investment of your surplus funds or to create a fund
for your childrens' education and marriage. You will find a product from SBI
that suits your requirement, delivered at a branch close to you.
Open an account with any of our branches, all of them are fully computerised,
and realise the advantage of our vast network. Place funds in Multi Option
Deposit Scheme, a term deposit which is not fixed at all and comes with a
17

unique break-up facility which provides you full liquidity as well as benefits of
higher rates of returns, through your savings bank account. Alternately, keep
that deposit intact by availing an overdraft facility, to meet your occasional
temporary funds requirements.
Want to build up savings slowly? Discover our Recurring Deposit Account.
You can save a little every month to build up the desired corpus to meet your
future requirement of funds.
Our products are designed with flexibility to suit your personal requirements.
Enjoy 24 hour banking facility through our Internet Banking/ widest network of
ATMs. Please watch this space for more details.
Current Account
Savings Bank Account
Term Deposits

Savings Plus Account

Basic Banking 'No frills Account'
Recurring Deposit Account

Special Term Deposits

PREMIUM SAVINGS ACCOUNT

Multi
Scheme
Scheme

Option

Deposit Rate of Interest on Domestic Term Deposits

SBI Tax Savings Scheme, 2006

The Industrial Development Bank of India Limited commonly known by its

acronym IDBI is one of India's leading public sector banks and 4th largest Bank
in overall ratings. RBI categorised IDBI as an "other public sector bank". It was
established in 1964 by an Act of Parliament to provide credit and other facilities
for the development of the fledgling Indian industry. It is currently 10th largest
development bank in the world in terms of reach with 1228 ATMs, 720
branches and 486 centers. Some of the institutions built by IDBI are the
18

National Stock Exchange of India (NSE), the National Securities Depository

Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the
Credit Analysis & Research Ltd, the Export-Import Bank of India(Exim Bank),
the Small Industries Development bank of India(SIDBI), the Entrepreneurship
Development Institute of India, and IDBI BANK, which today is owned by the
Indian Government, though for a brief period it was a private scheduled bank.
Recent Development
To meet emerging challenges and to keep up with reforms in financial sector,
IDBI has taken steps to reshape its role from a development finance institution
to a commercial institution. With the Industrial Development Bank (Transfer of
Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited
company viz. "Industrial Development Bank of India Limited" (IDBIL).
Subsequently, the Reserve Bank of India (RBI) issued the requisite notification
on September 30, 2004 incorporating IDBI as a 'scheduled bank' under the RBI
Act, 1934. Consequently, IDBI, formally entered the portals of banking
business as IDBIL from October 1, 2004.
The commercial banking arm, IDBI BANK, was merged into IDBI. In March
2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis
Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank
owns 48 percent. The company ended the year with over 300 Cr in premiums as
on 31 March 2009.
Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) was established on July 1,
1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve
Bank of India. In 16 February 1976, the ownership of IDBI was transferred to
the Government of India and it was made the principal financial institution for
coordinating the activities of institutions engaged in financing, promoting and
19

developing industry in the country. Although Government shareholding in the

Bank came down below 100% following IDBIs public issue in July 1995, the
former continues to be the major shareholder (current shareholding: 52.3%).
During the four decades of its existence, IDBI has been instrumental not only in
establishing a well-developed, diversified and efficient industrial and
institutional structure but also adding a qualitative dimension to the process of
industrial development in the country. IDBI has played a pioneering role in
fulfilling its mission of promoting industrial growth through financing of
medium and long-term projects, in consonance with national plans and
priorities. Over the years, IDBI has enlarged its basket of products and services,
covering almost the entire spectrum of industrial activities, including
manufacturing and services. IDBI provides financial assistance, both in rupee
and foreign currencies, for green-field projects as also for expansion,
modernisation and diversification purposes. In the wake of financial sector
reforms unveiled by the government since 1992, IDBI evolved an array of fund
and fee-based services with a view to providing an integrated solution to meet
the entire demand of financial and corporate advisory requirements of its
clients. IDBI also provides indirect financial assistance by way of refinancing of
loans extended by State-level financial institutions and banks and by way of
rediscounting of bills of exchange arising out of sale of indigenous machinery
on deferred payment terms.
IDBI has played a pioneering role, particularly in the pre-reform era (1964
91),in catalyzing broad based industrial development in the country in keeping
with its Government-ordained development banking charter. In pursuance of
this mandate, IDBIs activities transcended the confines of pure long-term
lending to industry and encompassed, among others, balanced industrial growth
through development of backward areas, modernisation of specific industries,
employment generation, entrepreneurship development along with support

20

services for creating a deep and vibrant domestic capital market, including
development of apposite institutional framework.
Narasimam committee

recommends that IDBI should give up its direct

financing functions and concentrate only in promotional and refinancing role.

But this recommendation was rejected by the government. Latter RBI
constituted a committee under the chairmanship of S.H.Khan to examine the
concept of development financing in the changed global challenges. This
committee is the first to recommend the concept of universal banking. The
committee wanted to the development financial institution to diversify its
activity. It recommended to harmonise the role of development financing and
banking activities by getting away from the conventional distinction between
commercial banking and developmental banking.
In September 2003, IDBI diversified its business domain further by acquiring
the entire shareholding of Tata Finance Limited in Tata Home finance Ltd.,
signaling IDBIs foray into the retail finance sector. The fully-owned housing
finance subsidiary has since been renamed IDBI Home finance Limited. In
view of the signal changes in the operating environment, following initiation of
reforms since the early nineties, Government of India has decided to transform
IDBI into a commercial bank without eschewing its secular development
finance obligations. The migration to the new business model of commercial
banking, with its gateway to low-cost current, savings bank deposits, would
help overcome most of the limitations of the current business model of
development finance while simultaneously enabling it to diversify its client/
asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act
2003 was passed by Parliament in December 2003. The Act provides for repeal
of IDBI Act, corporatisation of IDBI (with majority Government holding;
current share: 58.47%) and transformation into a commercial bank. The
provisions of the Act have come into force from July 2, 2004 in terms of a
Government Notification to this effect. The Notification facilitated formation,
21

incorporation and registration of Industrial Development Bank of India Ltd. as a

company under the Companies Act, 1956 and a deemed Banking Company
under the Banking Regulation Act 1949 and helped in obtaining requisite
regulatory and statutory clearances, including those from RBI. IDBI would
commence banking business in accordance with the provisions of the new Act
in addition to the business being transacted under IDBI Act, 1964 from October
1, 2004, the Appointed Date notified by the Central Government. IDBI has
firmed up the infrastructure, technology platform and reorientation of its human
capital to achieve a smooth transition.
IDBI Bank, with which the parent IDBI was merged, was a vibrant new
generation Bank. The Pvt Bank was the fastest growing banking company in
India. The bank was pioneer in adapting to policy of first mover in tier 2 cities.
The Bank also had the least NPA and the highest productivity per employee in
the banking industry.
On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in
principle approval to the merger of IDBI Bank with the Industrial Development
Bank of India Ltd. to be formed incorporated under the Companies Act, 1956
pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of
2003), subject to the approval of shareholders and other regulatory and statutory
approvals. A mutually gainful proposition with positive implications for all
stakeholders and clients, the merger process is expected to be completed during
the current financial year ending March 31, 2005.
The immediate fall out of the merger of IDBI and idbi bank was the exit of
employees of idbi bank. The cultures in the two organizations have taken its
toll. The IDBI BANK now is in a growing fold. With its retail banking arm
expanding further after the merger of United western Bank.
IDBI would continue to provide the extant products and services as part of its
development finance role even after its conversion into a banking company. In
22

addition, the new entity would also provide an array of wholesale and retail
banking products, designed to suit the specific needs cash flow requirements of
corporates and individuals. In particular, IDBI would leverage the strong
corporate relationships built up over the years to offer customised and total
financial solutions for all corporate business needs, single-window appraisal for
term loans and working capital finance, strategic advisory and hand-holding
support at the implementation phase of projects, among others.
IDBIs transformation into a commercial bank would provide a gateway to lowcost deposits like Current and Savings Bank Deposits. This would have a
positive impact on the Banks overall cost of funds and facilitate lending at
more competitive rates to its clients. The new entity would offer various retail
products, leveraging upon its existing relationship with retail investors under its
existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI
hopes to realize its mission of positioning itself as a one stop super-shop and
most preferred brand for providing total financial and banking solutions to
corporates and individuals, capitalising on its intimate knowledge of the Indian
industry and client requirements and large retail base on the liability side.
IDBI upholds the highest standards of corporate governance in its operations.
The responsibility for maintaining these high standards of governance lies with
its Board of Directors. Two Committees of the Board viz. the Executive
Committee and the Audit Committee are adequately empowered to monitor
implementation of good corporate governance practices and making necessary
disclosures within the framework of legal provisions and banking conventions.
Industrial Investment Bank of India Ltd.
The industrial investment bank of India is one of oldest banks in India. The
Industrial Reconstruction Corporation of India Ltd., set up in 1971 for
rehabilitation of sick industrial companies, was reconstituted as Industrial
Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to
23

converting the institution into a full-fledged development financial institution,

IRBI was incorporated under the Companies Act, 1956, as Industrial Investment
Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products
and services, including term loan assistance for project finance, short duration
non-project asset-backed financing, working capital/ other short-term loans to
companies, equity subscription, asset credit, equipment finance as also
investments in capital market and money market instruments.
In view of certain structural and financial problems adversely impacting its
long-term viability, IIBI submitted a financial restructuring proposal to the
Government of India on July 25, 2003. IIBI has since received certain directives
from the Government of India, which, inter alias, include restricting fresh
lending to existing clients approved cases rated corporates, restrictions on fresh
borrowings, an action plan to reduce the overhead expenditure, disposal of fixed
assets and a time-bound plan for asset recovery/reconstruction. The Government
of India had also given its approval for the merger of IIBI with IDBI and the
latter had already started the due diligence process.
But on December 17 2005 the IDBI rejected any such merger.
Acquisition of United Western Bank
In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb
Chirmule, who worked for the cause of Swadeshi movement, founded Satara
Swadeshi Commercial Bank in 1907, and some three decades later founded
United Western Bank. The bank was incorporated in 1936, and commenced
operations the next year, with its head office in Satara, in Maharashtra State. It
became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of
Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank. At the time of
the merger with IDBI, United Western had some 230 branches spread over 47
districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune,
Kolhapur, Jalgaon and Nagpur.
24

About company
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00
billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion
(US$ 896 million) for the year ended March 31, 2010. The Bank has a network
of 2,009 branches and about 5,219 ATMs in India and presence in 18 countries.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries in the areas of investment banking, life and
non-life insurance, venture capital and asset management. The Bank currently
has subsidiaries in the United Kingdom, Russia and Canada, branches in United
25

States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.
Our UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
ICICI Group Companies
ICICI Group
ICICI Prudential Life Insurance Company
ICICI Securities
ICICI Lombard General Insurance Company
ICICI Prudential AMC & Trust
ICICI Venture
ICICI Direct
ICICI Foundation
Disha Financial Counselling
PRODUCTS PROVIDED BY ICICI BANK
Savings account :
o

Balance Enquiry Statement of account

Cheque status enquiry Stop Payment

Cheque book request

Dial-a- draft/payorder

ATM lost card reporting

Request for a new ATM PIN

Fixed Deposits:
26

Opening a Fixed Deposit

Checking Fixed Deposit details

Request for TDS statement

Credit Cards:
o

Balance and account related inquiries Statement of account

Dial a draft/payorder

Lost/Replacement card

ATM pin re-issue

Payment instructions (maybe through a letter to the Call Centre)

Others:
o

Standing Instructions

Complaints and suggestions

Inquire about any ICICI retail product

Cards
Credit Cards
Add value to your shopping and shop smart.
Debit Cards
Access your bank account anywhere, anytime.
Benefits

Wide Acceptability: Enjoy purchases across 3,50,000 shopping outlets

in India and around 24 million outlets worldwide.

Online Shopping: Buy anything online, and experience the convenience

of your Debit Card. Reserve train, airline and movie tickets or buy gifts
for loved ones. You can even pay your electricity, mobile phone and

27

other bills online with the added security of Internet Banking user ID and
password.
Prepaid Cards
Ensure safe and convenient payments.
Commercial Cards
ICICI Banks Commercial Cards offer simple and convenient solutions to meet
the payment requirements of your organisation.
ICICI Bank Commercial Cards have been designed as payment solutions for
large & mid-sized organizations. A widely accepted concept internationally,
Commercial Cards help to better streamline payment processes & thus increase
efficiencies.

Corporate

Platinum

Purchase Card

DriveTrack Card

The ICICI Bank

ICICI Bank's Corporate

DriveTrack Fleet Card:

Corporate Card

Purchasing Solution is

ICICI Bank and HPCL

Programme delivers

designed to address the

jointly offer a fleet

greater control,

has been designed to

management

& Gold Card

28

enhanced efficiencies

address the non-

programme DriveTrack

and higher savings to

strategic, low value

for fleet owners.

your company. The

purchases that consume

programme combines

80% of a company's

the power of a

transaction volume.

corporate card with on-

Through a Purchase

line reporting

Card, all such

capabilities and

purchases can be

dedicated account
management.

About HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was
amongst the first to receive an 'in principle' approval from the Reserve Bank of
India (RBI) to set up a bank in the private sector, as part of the RBI's
liberalisation of the Indian Banking Industry in 1994. The bank was
incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995.
Accounts & Deposits
29

SAVING ACCOUNT
These accounts are primarily meant to inculcate a sense of saving for the future,
accumulating funds over a period of time. Whatever your occupation, we are
confident that you will find the perfect banking solution. Open an account in
your name or register for one jointly with a family member today.
Regular Salary
Regular
Advantage

Savings Plus

Senior Citizens

Classic
Premium

Kisan No Frills Savings

Family Savings

SavingsMax

Payroll

Retail Trust

No Frills

Defence

Kids

Pension Savings Reimbursement

Kisan Club Savings

Regular saving account

An easy-to-operate savings account that allows you to issue cheques, draw
Demand Drafts and withdraw cash. Check up on your balances from the
comfort of your home or office through NetBanking, PhoneBanking and
MobileBanking.
Need money urgently? Withdraw cash from any of the 4,232 ATM centres
spread across the country.

Features & Benefits

Wide network of branches and over thousand ATMs to meet all your banking
needs no matter where you are located.
Bank conveniently with facilities like NetBanking and MobileBanking- check
your account balance, pay utility bills or stop cheque payment, through SMS.
Never overspend- Shop using your International Debit Card that reflects the
actual balance in your savings account.
Personalised cheques with your name printed on each cheque leaf for
enhanced security.
Take advantage of BillPay, an instant solution to all your frequent utility bill
payments. Instruct for payment over the phone or through the Internet.
Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility
on your account.
30

Free cash withdrawals on any other Bank's ATM*

Free Payable-at-Par chequebook, without any usage charges upto a limit of
Rs.50,000/- per month.
Free InstaAlerts for all account holders for lifetime of the account.
Free Passbook facility available at home branch for account holders
(individuals).
Free Email Statement facility.
Saving plus account
Introducing the best banking option for you with HDFC Bank Savings Plus
Account. Now you can get access to some of the finest banking facilities with
HDFC Bank's Savings Plus Account. All you have to do is maintain an Average
Quarterly Balance of Rs. 10,000/- and experience the benefits as mentioned
below:
Features & Benefits
Wide network of branches and over thousand ATMs to meet all your banking
needs no matter where you are located.
Free cash withdrawals on any other Bank's ATM*.
Free International Debit Card for all account holders for life time of the
account.
Free Payable-at-Par (PAP) chequebook, without any usage charges upto a
limit of Rs. 50,000 per month. Above Rs. 50,000, charge of Rs.2.90/- per Rs.
1,000/- on the full amount.
Free Demand Drafts on HDFC Bank locations, upto a limit of 25,000/- per
day.
Free BillPay & InstaAlerts for all account holders for lifetime of the account
Free Electronic Funds Transfer facility, NetBanking, PhoneBanking &
MobileBanking
Special relationship discount on purchase of Gold Bars
25%-off on the Locker rental for the 1st year (only).
Intercity Banking / Multi-city Banking.
Free Passbook facility available at home branch for account holders
(individuals).
Free Email Statement facility.

31

PRODUCTS OF HDFC BANK

Accounts & Deposits

Investments &
Insurance

Loans

Savings Accounts

Personal Loans

Wealth
Advisory
Services

Regular Savings Account

SmartDraft

Savings Plus Account

Home Loans

SavingsMax Account

Two Wheeler Loans

Senior Citizens Account

New Car Loans

No Frills Account

Used Car Loans

Institutional
Account

Gold Loan

Savings

Payroll
Classic
Regular
Premium
Defence
No
Frills
Salary
Account
Reimbursement
Current Account
Kid's Advantage Account
Pension Saving
Account

Bank

Family Savings Group

Insurance

Loan Against Securities

General
&
Health
Insurance

Loan Against Property

Bonds

Loans Against
Receivables

Knowledge
Centre

Retail Agri Loans

Tractor Loans
Commercial
Finance

Vehicle

Equities &
Derivatives
Mudra Gold
Bar
Mudra Silver
Bar

Working Capital Finance

Construction Equipment
Finance
Warehouse
Loans

Receipt

Forex Services
Products
Services

Kisan Club Savings

Current Accounts
Plus Current Account

Rental

Health Care Finance

Kisan No Frills Savings

Cards

&

Trade
Services
Forex
Services
Branch
Locator

Trade Current Account

Premium
Account

Tax Planning

Educational Loan

Salary Accounts

Mutual
Funds

Current

Regular Current Account

RFC - Domestic Account

RBI
Guidelines

Flexi Current Account

Forex Limits

Apex Current Account

32

Max Current Account

Credit Cards

Merchant
Advantage
Current Account

Silver Credit Card

Merchant
Advantage
Plus Current Account

Gold Credit Card

Value Plus Credit Card

Payment
Services

Titanium Credit Card

NetSafe

Regular Fixed Deposit

Woman's Gold Credit

Card

5 Year Tax Saving Fixed

Deposite

Merchant
Services

Platinum
Card

Plus

Credit

Super Saver Facility

Prepaid
Refill

Visa Signature
Card

Credit

ngpay

Fixed Deposits

Sweep-in Facility
Recurring Deposit

World
MasterCard
Credit Card

Demat Account

Corporate
Credit Card

Safe Deposit Lockers

Platinum

Corporate Credit Card

HDFC Bank Imperia
Preferred
/
Classic Banking

Premium

Preferred Banking

PayNow
Register
Pay
InstaPay

Business
Card

mChek

Gold

Credit

Distributor Card
Debit Cards
EasyShop International
Debit Card

EasyShop International
Business Debit Card
EasyShop
Woman's
Advantage Debit Card
EasyShop
Debit Card

Titanium

EasyShop NRO Debit

Card
Prepaid Cards
ForexPlus Card
GiftPlus Card

DirectPay

RTGS Funds
Transfer
e-Monies
Electronic
Funds
Transfer
Excise
&
Service Tax
Payment
Online
Payment of
Direct Tax
Online
payment
DVAT

of

Online
payment of
Gujarat VAT

FoodPlus Card

Religious
Offerings

MoneyPlus Card

Donate

33

&

Visa Money
Transfer

EasyShop Gold Debit

Card

Classic Banking

Visa BillPay

Business Platinum Credit

Card

Purchase Card
Imperia
Banking

BillPay

to

ForexPlus Chip Card

Charity

Access
Bank

Your

NetBanking
Credit
Online

Cards

OneView
InstaAlerts
MobileBanking
ATM
PhoneBanking
Email

34

CHAPTER NO-03

OBJECTIVE OF
THE STUDY

OBJECTIVE OF THE STUDY

1. To know about Consumer Behavior in Public & Private sector Bank.
2. To compare the services of Private & Public sector bank.
35

3. To determine that how the Banks attract to customers for policies.

4. To study about the banking services of SBI, IDBI, ICICI & HDFC Bank.

36

CHAPTER NO-05

RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
my be understood as a science of studying how research is done systematically
& scientifically. In it we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind them.
37

Researcher also need to understand the assumptions underlying various

techniques they need to know the criteria by which they can decide that certain
techniques & procedures will be applicable to the certain problems and other
will not.
RESEARCH PROCESS
Research process consist of action or steps necessary for effective carry out
research and the desired of this steps1.

Formulating the Research problem- The best way of understanding the

problem is to discuss it with ones own colleagues or with those having some
expertise in the matter.

2.

Extensive Literature Survey- After formulating the problem a brief

summery of its should be written down. At this function research should
undertake extensive literature survey concerned with the problem.

3.

Development of working hypothesis- After extensive literature survey,

researcher should state in clear terms the working hypothesis.

4.

Preparing the research design- The research problem has bee

formulated in clear cut terms. The researcher will be required to prepare a
research design.

Basically there are three types of research design.

-

Exploratory research design.

Descriptive research design.

38

5.

Hypothesis testing design.

Determining the sample designs- All the items under consideration in
any field of inquiry constitute a universe or population. There are two types of
sampling method are used to design sample.

Random sampling

Non random sampling

The success of the analysis mostly depends on the methodology on which it is
carried out. The appropriate methodology will improve the validity of the
findings.
Data Collection:
The study is based on the data collected through primary and
secondary sources.
Primary Data:
An interview schedule and Questionnaire was designed to collect
primary data from various customer of Public & Private sector bank.
Secondary Data:
Secondary data was collected from journals, magazines, web sites
and from other relevant publications.

Sampling Design:
The sampling design mainly consists of the sample taken for the study
along with the sample size, sample frame and sampling method.

39

 Sample Size:
From the universe, sample sizes of 50 customers were selected for
the purpose of the study.
Sample Frame:
The customers were selected on a random basis from which the
respondents were selected based on convenience.
Sampling Method:
Convenience sampling was used, based on the willingness and
availability of the respondents. The study was conducted on consumers with
different type of business.

TOOLS AND TECHNIQUES

40

As no study could be successfully completed without proper tools and

techniques, same with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently. And I am
very thankful to all those tools for helping me a lot. Basic tools which I used for
project from statistics are- Pie charts
- Tables
bar charts and pie charts are really useful tools for every research to show the
result in a well clear, ease and simple way. Because I used bar charts and pie
charts in project for showing data in a systematic way, so it need not necessary
for any observer to read all the theoretical detail, simple on seeing the charts
any body could know that what is being said.
Technological Tools
Ms-Word
Ms-excel
Internet
Above application software of Microsoft helped me a lot in making project
more interactive and productive.
Microsoft-Excel had a great role in my project, it created for me a situation of
you sit and get. I provided it simply all the detail of data and in return it given
me all the relevant information..
Microsoft-Access did the performance of my personal assistant who organizes
my all the details of document without disturbing them even a single time in all
the project duration.
And in last Microsoft-Word did help me for the documentation of the project in
a presentable form.

SCOPE OF THE STUDY

41

In Indian Banking sector includes many players, but out of these players I
have selected only the Four Banks SBI , IDBI & ICICI, HDFC bank .The study
gave me a chance to carry Comparative analysis of consumer behavior along
with its various tools used in analysis which helps to understand the basics of
Consumer Behavior in Public & Private sector Bank and provides the tools that
help to decide which companies make worthwhile investments. This type of
analysis examines key products and policies of Banks. .The scope of project
extends to the study of 4 key players of Indian Banking sector . The study was
mainly based on the Consumer Behavior in Public & Private sector Bank.

LIMITATIONS
Despite the possible efforts in concluding the research, they were some
unavoidable situations, which limited the scope of the project.
1. The study was restricted to Bhopal.
2. Time was the biggest constraint as all questionnaires were to be filled in
person to actual views, but all efforts were made to get information
relevant to the research.
3. There may be some disepecies in views as some, people might give false
information in questionnaire, as they might not be in filling the form.
4. The sample size of 50 is small so there may be difference in the reality
and the findings.

42

CHAPTER NO-06

DATA ANALYSIS
&
INTERPRETATION

43

44

CHAPTER NO-07

FINDING

45

CHAPTER NO-08

SUGGESTION

SUGGESTION

46

1. Company should advertisement through various things i.e advertisement

through print media electronic media and distribution network.
2. As we have seen in the study persons are must affected by price & quality
factor. The company should concentrate over the price factor of the
program so that new customer could be attracted to wards the program
although quality factor of the program is satisfactory.
3. The company must conducted

the satisfaction survey time to time so

that company could know the satisfaction level of the consumer. It will be
more beneficial to company in making new strategies & policies.
4. Most of the person, which participated in the survey have said that the
program should be divided in to small packages. So that any one could
buy it easily.
5. The company price should be kept low in comparison to competitors
product price so that company can earn more profit by selling large
volume.
6. The companys awareness

is low, the company should be more

concentrate to increase the awareness of the company. The company can

use many marketing total to perform this work.
7. The company should be conducted the demo of program complaint,
policies & suggestion. It can improved it market share and consumer
satisfaction.

47

CHAPTER NO-09

CONCLUSION

CONCLUSION
48

The bank needs to make people aware about there products and the basic
benefits they can derive out of it.
Aggressive Marketing is the key to increasing the market share in this area,
since the market has a lot of potential both in terms of untapped market
Almost Both the Banks offer similar features and facilities with their Products.
There are certain reasons for existing customers of credit card of any Bank to
shift to another Bank.

49

CHAPTER NO-10

BIBLIOGRAPHY

BIBLIOGRAPHY

50

BOOKS
Marketing Management Philip Kotler, The Millennium Edition,
Prentice Hall Of India Private Limited, New Delhi.
A. Aaker, David. Strategic Market management. New York: John
Wiley & Sons,2001, pp.154-162.
Levy, Michael. A. Weitz .Barton. Retailing Management. New York:
McGrew-Hill,2004,pp.6-8, 627
Palmer, Adrian. Introduction to Marketing. India: Oxford University
Press,2004, pp.350-351,363.
1.

MAGAZINES REFFERED:
INDIA TODAY
BUSINESS TIMES

2.

WEBSITES REFFERED:

www.icicibank.com
www.sbi.com
www.indianinfoline.com
www.creditcardsbasic.com
3.

SEARCH ENGINES:
www.google.co.in

www.wikipedia.org.in

51

CHAPTER NO-11

ANNEXURE

52

QUESTIONNAIRE

53