CHAPTER NO: 1 INTRODUCTION

Banking Industry which is basically my concern industry around which my project has to be

revolved is really a very complex industry. And to work for this was really a complex and hectic

task and few times I felt so frustrated that I thought to left the project and go for any new

industry and new project. Challenges which I faced while doing this project were following-

- Banking sector was quite similar in offering and products and because of that it was very

difficult to discriminate between our product and products of the competitors.

- Target customers and respondents were too busy persons that to get their time and view

for specific questions was very difficult.

- Sensitivity of the industry was also a very frequent factor which was very important to

measure correctly.

- Area covered for the project while doing job also was very large and it was very difficult

to correlate two different customers/respondents views in a one.

- Every financial customer has his/her own need and according to the requirements of the

customer product customization was not possible.

So above challenges some time forced me to leave the project but any how I did my project in all

circumstances. Basically in this project I analyzed that-

What factors are really responsible for performance of IDBI Banks performance in this

competitive era.

1
1.1 Industry introduction

The banking sector in India was regulated to a certain extent in 1935 with reserve bank of India

being bestowed with the responsibility to act as a regulator, after the independence of the country

in 1947. The government of India realized that lassies faire policy can not be continued for an

important sector like banking. Nationalization of banks, thus, can be described as a stepping

stone for the development The Indian banking industry has undergone radical changes due to

liberalization and globalization measures undertaken since 1991. Today, Indian banking industry

is one of the largest in the world. There has been a great surge in retail banking. Retail portfolio,

which mainly comprises lending for consumer durables, housing, personal loans and educational

loans, etc., constitutes more than one-fifth of total bank advances. Banks are continuously

striving to improve their services in different market segments. Nevertheless, there has remained

a gap between the services offered by banks in the retail area and the expectations of their

customers. The present study, based on responses received from 300 customers of SBI bank,

PNB bank, HDFC Bank, ICICI Bank, IDBI bank, and some other private and nationalized banks

in Delhi city, was undertaken to identify the various types of services offered by banks, the level

of satisfaction about different types of services, expectation about these services and the level of

segmentation gap among the services offered.

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949

can be broadly classified into two major categories, non-scheduled banks and scheduled banks.

Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,

commercial banks can be further grouped into nationalized banks, the State Bank of India and its

group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).

2
These banks have over 67,000 branches spread across the country in every city and villages of all

nook and corners of the land.

The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and

resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant

growth in the geographical coverage of banks. Every bank had to earmark a minimum

percentage of their loan portfolio to sectors identified as priority sectors. The manufacturing

sector also grew during the 1970s in protected environs and the banking sector was a critical

source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980.

Since then the number of scheduled commercial banks increased four-fold and the number of

bank branches increased eight-fold. And that was not the limit of growth.

After the second phase of financial sector reforms and liberalization of the sector in the early

nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new

private sector banks and the foreign banks. The new private sector banks first made their

appearance after the guidelines permitting them were issued in January 1993. Eight new private

sector banks are presently in operation. These banks due to their late start have access to state-of-

the-art technology, which in turn helps them to save on manpower costs.

During the year 2000, the State Bank Of India (SBI) and its 7 associates accounted for a 25

percent share in deposits and 28.1 percent share in credit. The 20 nationalized banks accounted

for 53.2 percent of the deposits and 47.5 percent of credit during the same period. The share of

foreign banks (numbering 42), regional rural banks and other scheduled commercial banks

accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41 percent,

3
3.14 percent and 12.85 percent respectively in credit during the year 2000.about the detail of the

current scenario we will go through the trends in modern economy of the country.

1.2 Current Scenario

The industry is currently in a transition phase. On the one hand, the PSBs, which are the

mainstay of the Indian Banking system are in the process of shedding their flab in terms of

excessive manpower, excessive non Performing Assets (Npas) and excessive governmental

equity, while on the other hand the private sector banks are consolidating themselves through

mergers and acquisitions.

PSBs, which currently account for more than 78 percent of total banking industry assets are

saddled with NPAs (a mind-boggling Rs 830 billion in 2000), falling revenues from traditional

sources, lack of modern technology and a massive workforce while the new private sector banks

are forging ahead and rewriting the traditional banking business model by way of their sheer

innovation and service. The PSBs are of course currently working out challenging strategies even

as 20 percent of their massive employee strength has dwindled in the wake of the successful

Voluntary Retirement Schemes (VRS) schemes.

The private players however cannot match the PSBs great reach, great size and access to low

cost deposits. Therefore one of the means for them to combat the PSBs has been through the

merger and acquisition (M& A) route. Over the last two years, the industry has witnessed several

such instances. For instance, HDFC Banks merger with Times Bank Icici Banks acquisition of

ITC Classic, Anagram Finance and Bank of Madurai. Centurion Bank, Indusind Bank, Bank of

Punjab, Vysya Bank are said to be on the lookout. The UTI bank- Global Trust Bank merger

4
however opened a pandoras box and brought about the realization that all was not well in the

functioning of many of the private sector banks.

Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobile

banking, debit cards, Automatic Teller Machines (ATMs) and combined various other services

and integrated them into the mainstream banking arena, while the PSBs are still grappling with

disgruntled employees in the aftermath of successful VRS schemes. Also, following Indias

commitment to the W To agreement in respect of the services sector, foreign banks, including

both new and the existing ones, have been permitted to open up to 12 branches a year with effect

from 1998-99 as against the earlier stipulation of 8 branches.

Tasks of government diluting their equity from 51 percent to 33 percent in November 2000 has

also opened up a new opportunity for the takeover of even the PSBs. The FDI rules being more

rationalized in Q1FY02 may also pave the way for foreign banks taking the M& A route to

acquire willing Indian partners.

Meanwhile the economic and corporate sector slowdown has led to an increasing number of

banks focusing on the retail segment. Many of them are also entering the new vistas of

Insurance. Banks with their phenomenal reach and a regular interface with the retail investor are

the best placed to enter into the insurance sector. Banks in India have been allowed to provide

fee-based insurance services without risk participation, invest in an insurance company for

providing infrastructure and services support and set up of a separate joint-venture insurance

company with risk participation.

5
1.3 Aggregate Performance of the Banking Industry

Aggregate deposits of scheduled commercial banks increased at a compounded annual average

growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr of 16.3

percent per annum. Banks investments in government and other approved securities recorded a

Cagr of 18.8 percent per annum during the same period.

In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP) growth of only

6.0 percent as against the previous years 6.4 percent. The WPI Index (a measure of inflation)

increased by 7.1 percent as against 3.3 percent in FY00. Similarly, money supply (M3) grew by

around 16.2 percent as against 14.6 percent a year ago.

The growth in aggregate deposits of the scheduled commercial banks at 15.4 percent in FY01

percent was lower than that of 19.3 percent in the previous year, while the growth in credit by

SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago.

The industrial slowdown also affected the earnings of listed banks. The net profits of 20 listed

banks dropped by 34.43 percent in the quarter ended March 2001. Net profits grew by 40.75

percent in the first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of

2000-2001.

On the Capital Adequacy Ratio (CAR) front while most banks managed to fulfill the norms, it

was a feat achieved with its own share of difficulties. The CAR, which at present is 9.0 percent,

is likely to be hiked to 12.0 percent by the year 2004 based on the Basle Committee

recommendations. Any bank that wishes to grow its assets needs to also shore up its capital at the

same time so that its capital as a percentage of the risk-weighted assets is maintained at the

6
stipulated rate. While the IPO route was a much-fancied one in the early 90s, the current

scenario doesnt look too attractive for bank majors.

Consequently, banks have been forced to explore other avenues to shore up their capital base.

While some are wooing foreign partners to add to the capital others are employing the M& A

route. Many are also going in for right issues at prices considerably lower than the market prices

to woo the investors.

1.4 Interest Rate Scene

The two years, post the East Asian crises in 1997-98 saw a climb in the global interest rates. It

was only in the later half of FY01 that the US Fed cut interest rates. India has however remained

more or less insulated. The past 2 years in our country was characterized by a mounting intention

of the Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a narrowing

differential between global and domestic rates.

The RBI has been affecting bank rate and CRR cuts at regular intervals to improve liquidity and

reduce rates. The only exception was in July 2000 when the RBI increased the Cash Reserve

Ratio (CRR) to stem the fall in the rupee against the dollar. The steady fall in the interest rates

resulted in squeezed margins for the banks in general.

1.5 Governmental Policy

After the first phase and second phase of financial reforms, in the 1980s commercial banks began

to function in a highly regulated environment, with administered interest rate structure,

quantitative restrictions on credit flows, high reserve requirements and reservation of a

7
significant proportion of lendable resources for the priority and the government sectors. The

restrictive regulatory norms led to the credit rationing for the private sector and the interest rate

controls led to the unproductive use of credit and low levels of investment and growth. The

resultant financial repression led to decline in productivity and efficiency and erosion of

profitability of the banking sector in general.

This was when the need to develop a sound commercial banking system was felt. This was

worked out mainly with the help of the recommendations of the Committee on the Financial

System (Chairman: Shri M. Narasimham), 1991. The resultant financial sector reforms called for

interest rate flexibility for banks, reduction in reserve requirements, and a number of structural

measures. Interest rates have thus been steadily deregulated in the past few years with banks

being free to fix their Prime Lending Rates(PLRs) and deposit rates for most banking products.

Credit market reforms included introduction of new instruments of credit, changes in the credit

delivery system and integration of functional roles of diverse players, such as, banks, financial

institutions and non-banking financial companies (Nbfcs). Domestic Private Sector Banks were

allowed to be set up, PSBs were allowed to access the markets to shore up their Cars.

1.6 Implications of Some Recent Policy Measures

The allowing of PSBs to shed manpower and dilution of equity are moves that will lend greater

autonomy to the industry. In order to lend more depth to the capital markets the RBI had in

November 2000 also changed the capital market exposure norms from 5 percent of banks

incremental deposits of the previous year to 5 percent of the banks total domestic credit in the

previous year. But this move did not have the desired effect, as in, while most banks kept away

8
almost completely from the capital markets, a few private sector banks went overboard and

exceeded limits and indulged in dubious stock market deals. The chances of seeing banks

making a comeback to the stock markets are therefore quite unlikely in the near future.

The move to increase Foreign Direct Investment FDI limits to 49 percent from 20 percent during

the first quarter of this fiscal came as a welcome announcement to foreign players wanting to get

a foot hold in the Indian Markets by investing in willing Indian partners who are starved of net

worth to meet CAR norms. Ceiling for FII investment in companies was also increased from

24.0 percent to 49.0 percent and have been included within the ambit of FDI investment.

1.7 IDBI bank: all about

The economic development of any country depends on the extent to which its financial system

efficiently and effectively mobilizes and allocates resources. There are a number of banks and

financial institutions that perform this function; one of them is the development bank.

Development banks are unique financial institutions that perform the special task of fostering the

development of a nation, generally not undertaken by other banks.

Development banks are financial agencies that provide medium-and long-term financial

assistance and act as catalytic agents in promoting balanced development of the country. They

are engaged in promotion and development of industry, agriculture, and other key sectors. They

also provide development services that can aid in the accelerated growth of an economy.

9
The objectives of development banks are:

To serve as an agent of development in various sectors, viz. industry, agriculture, and

international trade

To accelerate the growth of the economy

To allocate resources to high priority areas

To foster rapid industrialization, particularly in the private sector, so as to provide

employment opportunities as well as higher production

To develop entrepreneurial skills

To promote the development of rural areas

To finance housing, small scale industries, infrastructure, and social utilities.

In addition, they are assigned a special role in:

Planning, promoting, and developing industries to fill the gaps in industrial sector.

Coordinating the working of institutions engaged in financing, promoting or developing

industries, agriculture, or trade, rendering promotional services such as discovering project ideas,

undertaking feasibility studies, and providing technical, financial, and managerial assistance for

the implementation of projects

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1.8 Industrial development bank of India

The industrial development bank of India(IDBI) was established in 1964 by parliament as wholly

owned subsidiary of reserve bank of India. In 1976, the banks ownership was transferred to the

government of India. It was accorded the status of principal financial institution for coordinating

the working of institutions at national and state levels engaged in financing, promoting, and

developing industries.

IDBI has provided assistance to development related projects and contributed to building up

substantial capacities in all major industries in India. IDBI has directly or indirectly assisted all

companies that are presently reckoned as major corporates in the country. It has played a

dominant role in balanced industrial development.

IDBI set up the small industries development bank of India (SIDBI) as wholly owned subsidiary

to cater to specific the needs of the small-scale sector.

IDBI has engineered the development of capital market through helping in setting up of the

securities exchange board of India(SEBI), National stock exchange of India limited(NSE), credit

analysis and research limited(CARE), stock holding corporation of India limited(SHCIL),

investor services of India limited(ISIL), national securities depository limited(NSDL), and

clearing corporation of India limited(CCIL)

In 1992, IDBI accessed the domestic retail debt market for the first time by issuing innovative

bonds known as the deep discount bonds. These new bonds became highly popular with the

Indian investor.

11
In 1994, IDBI Act was amended to permit public ownership up to 49 per cent. In July 1995, it

raised over Rs 20 billion in its first initial public (IPO) of equity, thereby reducing the

government stake to 72.14 per cent. In June 2000, a part of government shareholding was

converted to preference capital. This capital was redeemed in March 2001, which led to a

reduction in government stake. The government stake currently is 51 per cent.

In august 2000, IDBI became the first all India financial institution to obtain ISO 9002: 1994

certification for its treasury operations. It also became the first organization in the Indian

financial sector to obtain ISO 9001:2000 certification for its forex services.

12
1.9 Milestones

July 1964: Set up under an Act of Parliament as a wholly-owned subsidiary of Reserve

Bank of India.

February 1976: Ownership transferred to Government of India. Designated Principal

Financial Institution for co-coordinating the working of institutions at national and State

levels engaged in financing, promoting and developing industry.

March 1982: International Finance Division of IDBI transferred to Export-Import Bank

of India, established as a wholly-owned corporation of Government of India, under an

Act of Parliament.

April 1990: Set up Small Industries Development Bank of India (SIDBI) under SIDBI

Act as a wholly-owned subsidiary to cater to specific needs of small-scale sector. In

terms of an amendment to SIDBI Act in September 2000, IDBI divested 51% of its

shareholding in SIDBI in favour of banks and other institutions in the first phase. IDBI

has subsequently divested 79.13% of its stake in its erstwhile subsidiary to date.

January 1992: Accessed domestic retail debt market for the first time with innovative

Deep Discount Bonds; registered path-breaking success.

December 1993: Set up IDBI Capital Market Services Ltd. as a wholly-owned subsidiary

to offer a broad range of financial services, including Bond Trading, Equity Broking,

Client Asset Management and Depository Services. IDBI Capital is currently a leading

Primary Dealer in the country.

September 1994: Set up IDBI Bank Ltd. in association with SIDBI as a private sector

commercial bank subsidiary, a sequel to RBI's policy of opening up domestic banking

sector to private participation as part of overall financial sector reforms.

13
 October 1994: IDBI Act amended to permit public ownership upto 49%.

July 1995: Made Initial Public Offer of Equity and raised over Rs.2000 crore, thereby

reducing Government stake to 72.14%.

March 2000:Entered into a JV agreement with Principal Financial Group, USA for

participation in equity and management of IDBI Investment Management Company Ltd.,

erstwhile a 100% subsidiary. IDBI divested its entire shareholding in its asset

management venture in March 2003 as part of overall corporate strategy.

March 2000: Set up IDBI Intech Ltd. as a wholly-owned subsidiary to undertake IT-

related activities.

June 2000: A part of Government shareholding converted to preference capital, since

redeemed in March 2001; Government stake currently 58.47%.

August 2000: Became the first All-India Financial Institution to obtain ISO 9002:1994

Certification for its treasury operations. Also became the first organisation in Indian

financial sector to obtain ISO 9001:2000 Certification for its forex services.

March 2001: Set up IDBI Trusteeship Services Ltd. to provide technology-driven

information and professional services to subscribers and issuers of debentures.

Feburary 2002: Associated with select banks/institutions in setting up Asset

Reconstruction Company (India) Limited (ARCIL), which will be involved with the

Strategic management of non-performing and stressed assets of Financial Institutions and

Banks.

September 2003: IDBI acquired the entire shareholding of Tata Finance Limited in Tata

Homefinance Ltd, signalling IDBI's foray into the retail finance sector. The housing

finance subsidiary has since been renamed 'IDBI Homefinance Limited'.

14
 December 2003: On December 16, 2003, the Parliament approved The Industrial

Development Bank (Transfer of Undertaking and Repeal Bill) 2002 to repeal IDBI Act

1964. The President's assent for the same was obtained on December 30, 2003. The

Repeal Act is aimed at bringing IDBI under the Companies Act for investing it with the

requisite operational flexibility to undertake commercial banking business under the

Banking Regulation Act 1949 in addition to the business carried on and transacted by it

under the IDBI Act, 1964.

July 2004: The Industrial Development Bank (Transfer of Undertaking and Repeal) Act

2003 came into force from July 2, 2004.

July 2004: The Boards of IDBI and IDBI Bank Ltd. take in-principle decision regarding

merger of IDBI Bank Ltd. with proposed Industrial Development Bank of India Ltd. in

their respective meetings on July 29, 2004.

September 2004: The Trust Deed for Stressed Assets Stabilisation Fund (SASF)

executed by its Trustees on September 24, 2004 and the first meeting of the Trustees was

held on September 27, 2004.

September 2004: The new entity "Industrial Development Bank of India" was

incorporated on September 27, 2004 and Certificate of commencement of business was

issued by the Registrar of Companies on September 28, 2004.

September 2004:Notification issued by Ministry of Finance specifying SASF as a

financial institution under Section 2(h)(ii) of Recovery of Debts due to Banks &

Financial Institutions Act, 1993.

15
 September 2004:Notification issued by Ministry of Finance on September 29, 2004 for

issue of non-interest bearing GoI IDBI Special Security, 2024, aggregating Rs.9000

crore, of 20-year tenure.

September 2004: Notification for appointed day as October 1, 2004, issued by Ministry

of Finance on September 29, 2004.

September 2004:RBI issues notification for inclusion of Industrial Development Bank of

India Ltd. in Schedule II of RBI Act, 1934 on September 30, 2004.

October 2004: Appointed day - October 01, 2004 - Transfer of undertaking of IDBI to

IDBI Ltd. IDBI Ltd. commences operations as a banking company. IDBI Act, 1964

stands repealed. January 2005:The Board of Directors of IDBI Ltd., at its meeting held

on January 20, 2005, approved the Scheme of Amalgamation, envisaging merging of

IDBI Bank Ltd. with IDBI Ltd. Pursuant to the scheme approved by the Boards of both

the banks, IDBI Ltd. will issue 100 equity shares for 142 equity shares held by

shareholders in IDBI Bank Ltd. EGM has been convened on February 23, 2005 for

seeking shareholder approval for the scheme.

16
1.10 Costumer Care Policy

What is Customer Care?

Customer Care means providing good quality services in a friendly, efficient and helpful way. It
implies that in all our dealings with customers, they are treated with dignity, respect and
courtesy. To that effect, IDBI Bank has set-up a Centralised Customer Care Centre to address the
concerns of the customers. This centre has been awarded an ISO 9001:2008 certification and it
pro-actively endeavours to ensure that customer concerns and grievances are effectively
addressed.

Customer Care Principles

Well-designed customer service must be accompanied by good delivery. The Customer Care
Policy of IDBI Bank strives to ensure Customer Delight and is thus based on the following 7
principles: -

a) Speed Customer's needs should be taken care of as soon as possible. Delayed handling of
the customer's requests is a major block in the delivery of good customer service.

b) Timeliness Commencement of banking business and opening of counter services in time

and rendering uninterrupted service during business hours is an integral aspect of ensuring good
customer service.

c) Accuracy The information rendered by the Bank to the customer should be factual, accurate
and unambiguous. Acronyms, if used, should be explained to the customer. Where there is any
doubt about the accuracy of any information, the details will be checked and validated prior to
release.

d) Courtesy The least that any visitor to a branch expects is courtesy from the Bank staff.
Therefore, first and foremost, every customer shall be extended due courtesies, whether or not
the Bank is in a position to meet his/her needs.

17
Courtesy will be shown in all circumstances, even in difficult situations where Customer Care
Policy the customer does not show similar courtesy in return. Staff will always be polite in their
spoken words, body language and demeanour.

e) Concern Anticipating the customer's problems and guiding them shows that Bank cares for
them and is equally concerned.

f) Communication An important part of customer service is communicating effectively with

the customers and personal interaction plays a very effective role in developing the relationship
with customers. IDBI Bank welcomes opinion and suggestions from customers and such
opinions/ suggestions are placed before a specially appointed Committee to look into customer
suggestions. If found to be feasible, the suggestions are accepted and subsequently implemented.

Customer Service Policies

The Bank has continuously strived to provide the best banking experience to customers. The
Bank has formulated and adopted policies that will guide the officials in delivering consistent
and good service to its customers. The Bank's approach to develop "Customer First Attitude" is
well documented in the various customer centric policies adopted by the Bank that are available
on the Banks website www.idbi.com. Brief features of the policies are given below. These
policies are reviewed periodically to incorporate expectations of both the customers and
regulators; and to also pass on the benefits of technology to all customers.

Code of Bank's Commitment to Customer issued by Banking Codes and

Standards Board of India (BCSBI):

The codes represent the Bank's commitment to minimum standards of service to individual and
Micro and Small Enterprises (MSE) customers in relation to products and services offered by the
Bank. IDBI Bank is committed to provide fair and transparent treatment to all its customers
availing its banking services. IDBI Bank is amongst the first Banks to register with the Banking

18
Codes and Standards Board of India and to voluntarily accept the Code of Bank's Commitment
to Customers.

Citizen's Charter :

A need was felt by us at IDBI Bank that in order to become more customer friendly the Bank
should come out with charter of its services for the customers. Citizens' Charter concept was
considered as a base instrument to fill this need and Customer Care Policy accordingly this
document was prepared. This document highlights IDBI Bank's commitments towards customer
satisfaction, thus ensuring accountability and responsibility amongst its officials and staff. This
charter not only explains our commitment and responsibilities along with the redressal methods
but also specifies the obligation on the part of customers for healthy practices in customer-banker
relationships.

Cheque Collection Policy:

This policy covers the following aspects:

a) Collection of cheques and other instruments payable locally, at centres within India and
abroad.
b) Our commitment regarding time norms for collection of instruments.
c) Policy on payment of interest in cases where the Bank fails to meet time norms for realization
of proceeds of outstation instruments.
d) Our policy on dealing with collection instruments lost in transit.

Deposit Policy:

This outlines the guiding principles in respect of formulation of various deposit products offered
by the Bank and terms and conditions governing the conduct of the account. For eg. the Bank on
request from the depositor, at its discretion, may allow withdrawal of term deposit before
completion of the period of the deposit agreed upon at the time of placing of the deposit. The
Bank shall make the depositors

19
aware of the applicable rate as well as the deposit rate on such premature withdrawals.

Collection of Dues and Security Repossession Policy:

The debt collection policy of the Bank is built around dignity and respect to customers. The
policy is based on courtesy, fair treatment and persuasion. The Bank believes in following fair
practices with regard to collection of dues and repossession of security. Repossession of security
is aimed at recovery of dues and not to deprive the borrower of the property.

Fair Practice Code for Lending:

The Code underlines the principles for dealing with customers in the course of the Bank's
lending business. The code is applicable to both Corporate and Retail Lending.

Policy for Grievance Redressal

The Bank takes utmost efforts to ensure that the customers have a pleasant banking experience.
However, in case of any customer dissatisfaction / grievance, the Bank has in place, a robust
system to resolve them. The Bank takes due care to ensure that customer complaints are attended
to and resolved in a time bound manner. This policy document aims at minimizing instances of
customer complaints and grievances through proper service delivery and review mechanism and
to ensure prompt redressal of customer complaints and grievances. It also emphasizes on a
review mechanism that would help in identifying shortcomings in product features and service
delivery and taking necessary steps to remove them.

Compensation Policy

This Policy establishes a system whereby the Bank compensates the customer for financial loss
he/she might incur due to deficiency in service on the part of the Bank which can be measured
directly.

20
 1.11 SWOT Analysis Of IDBI Bank

STRENGTHS

The banks major strength is it involves latest cutting edge technologies to support its core
banking operations
The bank has network of 943 branches and 1529 ATMs
The bank has grown at a rate of 60% compared to previous year
IDBI has the first mover advantage in opening G-sec portal. This is a platform for the retail
investors to invest in government securities
IDBI is one of the largest commercial banks in India which focuses on industrial infrastructure
and development.
IDBIs product portfolio includes 14 broad classifications, and there are some sub categories in
each. The bank has customized solution faculties for its industrial clients
The location of its headquarters in Mumbai fosters the growth of the bank.

WEAKNESS

IDBI has less penetration into the rural market

IDBI has very less number of branches and ATM network compared to other major players
It concentrates mainly on commercial banking services whereas the individual banking services
is where the main revenue lies.
The customer help desk is not performing efficiently and there are many unresolved issues of
customers
The bank has lots of consumer complaints with respect to servicing charges
The bank lacks in promotional activities

21
 OPPORTUNITIES

Scope for bagging government schemes are high as IDBI belongs to public sector
Global opportunities for IDBI are the rise as the management is keenly focusing on global
expansion in next few years
They have a good number of financial expertise to face the emerging industrial and economic
growth in India
It is the only bank in public sector which has enabled social media plug-in in its website. This
has increased the brand awareness and better reach to its customers
The bank has good opportunities in semi-urban and Tire II cities areas as the industrial growth is
taking very rapidly.

THREATS

IDBI faces tough competition in terms of new market development due to competition from both
government and private banks
FDI in Indian banking has been opened up to 74% by the RBI
In private banking HDFC, ICICI and in public sector SBI, Punjab National Bank, Andhra bank
and Allahabad bank are the major competitors
The bank has to focus on improving the customer satisfaction in order to sustain the loyal
customers
Recent scams and fraudulent activities of bank have gained mistrust from its customers and
investors

22
 IDBI BANK

RETAIL BANKING DEVELOPMENT BANK.

SAVING ACCOUNT CURRENT ACCOUNT INVESTMENT

PERSONAL SAVING CORPORATE SAVING

Fig.1 IDBI Bank Business Chart

23
 Chairman

President

Vice president Vice president Vice president Vice president

Finance H. R. Marketing Operations

Regional Head

Zonal Head

Divisional Sales Manager

Territory In charge

Fig. 2 IDBI Bank Organizational Chart

24
 CHAPTER NO: 2 COMPANY PROFILE/ LITERATURE REVIEW

IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI Bank

has essayed a key nation-building role, first as the apex Development Financial Institution (DFI)

(July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full-service

commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas

beyond mere project financing to cover an array of services that contributed towards balanced

geographical spread of industries, development of identified backward areas, emergence of a

new spirit of enterprise and evolution of a deep and vibrant capital market. On October 1, 2004,

the erstwhile IDBI Bank converted into a Banking company (as Industrial Development Bank of

India Limited) to undertake the entire gamut of Banking activities while continuing to play its

secular DFI role. Post the mergers of the erstwhile IDBI Bank with its parent company (IDBI

Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of the

erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-savvy, new

generation Bank with majority Government shareholding today touches the lives of millions of

Indians through an array of corporate, retail, SME and Agri products and services.

Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a

highly competent and dedicated workforce and a state-of-the-art information technology

platform, to structure and deliver personalized and innovative Banking services and customized

financial solutions to its clients across various delivery channels.

25
As on March 31, 2014 IDBI Bank has a balance sheet of Rs.3, 28,997 crore and business size

(deposits plus advances) of Rs.4,33,460 crore. As an Universal Bank, IDBI Bank, besides its

core banking and project finance domain, has an established presence in associated financial

sector businesses like Capital Market, Investment Banking and Mutual Fund Business. Going

forward, IDBI Bank is strongly committed to work towards emerging as the 'Bank of choice' and

'the most valued financial conglomerate', besides generating wealth and value to all its

stakeholders.

26
2.1 PRODUCTS

IDBI Bank Ltd. offers need-based products to eligible corporate in its Corporate Banking

segments as under:

Personal Banking

Deposits

Loans

Payments - Tax Payments, Stamp Duty Payments, Easy Fill, Bill

Payment, Card to Card Money Transfer, PayMate, Online Payments

Mutual Fund

Demat Account

IPO

Insurance Family Care, Weathsurance

Cards - Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-ATM

Card, World Currency

Card

Institutional Banking

Lockers

India Post

NRI Services

Phone Banking

SMS Banking

Account Alerts

Internet Banking

27
Corporate Banking

Syndication, Underwriting & Advisory Services

Project Finance

Infrastructure Finance

Carbon Credits Business

Cash Management Services

Trade Finance

Tax Payments

Derivatives

Technology Up gradation Fund Scheme (TUFS)

Film Financing Scheme

Direct Discounting Bills

Rehabilitation Finance

Others

SME Finance

Agri-business Products

28
2.2 PROMOTIONAL MIX

Promotion mix includes advertising, publicity, sales promotion, word of mouth promotion,

personal selling and telemarketing. Each of these services needs to be applied in different degree.

These components can be useful in the banking business in the following ways:

Advertising

Advertising is paid form of communication. Banking organizations use this component of the

promotion mix with motto of informing, sensing and persuading the customers. While

advertising it is essential to be aware of key decision making areas so that instrumentally helps

banks at micro and macro levels.

Finalizing the budget:

This is related to the formulation of the budget for advertisement. The bank professionals, senior

executives and even the policy planners are found to be involved in the process. The business of

a bank determines the scale of the advertisement budget.

29
Selecting a suitable vehicle:

There are a number of devices to advertise, such as broad cast media,

telecast media and print media. In the face of the budgetary provisions,

it is necessary to select a suitable vehicle. For promoting the banking

business, the print media is found to be economic as well as effective.

Making possible creative:

The advertising professionals bear the responsibility of making the appeals, slogans and

messages more creative. Here, creative means making the advertisement programs distinct to the

competitive organizations, which are active in influencing the impulse of the customers and

successful in informing and sensing the customers. This requires an in-depth knowledge of the

receiving capacity of the target market for which the advertisements are designed.

Testing the effectiveness:

It bears an analogous significance that our advertisements are effective in influencing the

impulse of customers by energizing persuasion. For making the process effective, it is essential

to test the effectiveness before launching of the commercial advertisements.

Instrumentality of branch managers:

At micro level, a branch manager bears the responsibility of advertising locally so that the

messages reach the target audience.

30
Characters and themes:

At apex level it is also important that while advertising the senior executives watch the process

minutely and select events, characters having a regional orientation. The popular characters and

sensational moments are likely to be impact generating. The theme for appeals and messages

also needs due attention. Of course, they have a legitimate right of advertising but it is not meant

that like the goods manufacturing organizations, the service generating organizations also start

making invasion on culture. It is necessary to regulate a bias to gender, profession, region or so.

Public relations:

In the banking services the effectiveness of public Relations is found in high magnitude. It is in

this context that difference is found in designing of the mix for promoting the banking services.

Telemarketing:

The telemarketing is a process of promoting the business

with the help of sophisticated communication network.

Telemarketing is found instrumental in advertising the banking

services and the banking organizations can use this tool of the promotion mix both for

advertising and selling. This minimizes the dependence of banking organizations on sales people

and just a counter or center as listed in the call numbers may service multi- dimensional services.

Telemarketing is likely to play an incremental role in marketing the banking services. The

leading foreign banks and even some of the private sector commercial banks have been found

promoting telemarketing and they have been getting positive results for their efforts.

31
Word-Of- Mouth:

Much communication about the banking services actually takes place by word- of- mouth

information, which is also known as word- of- mouth promotion. The oral publicity plays an

important role in eliminating the negative comments and improving the services. This also helps

the banker to know the feedback, which may simplify the task of improving the quality of

services. This component of promotion mix is not to influence budget adversely or generate

additional financial burden. By improving the quality of services and by offering small gifts to

the word- of- mouth promoters, bankers can get more business command in their area.

The above facts make it clear that such kind of promotion is influenced by a number of factors.

The most dominating factor is the quality of services offered. The bank professionals, the

frontline staff and the senior executives should realize that degeneration in quality would make

this tool effective.

2.3 PRICE MIX

In the formulation of marketing mix, the pricing decisions occupy a

place of outstanding significance. The pricing decisions include the decisions related to interest

and fee or commission charged by banks. Pricing decisions are found instrumental in motivating

or influencing the target market. The RBI regulates the rate of interest and the Indian Banks

Association controls other charges. In our country, the price mix is more important because the

banking organizations are also supposed to sub serve the interests of the weaker sections and the

backward regions. Also in making the pricing decisions, the Government of India

32
instrumentalists or commands everything as a shadow policy maker. This also complicates the

price mix for banking sector.

The banking organizations are required to frame two- fold strategies. First, the strategy is

concerned with interest and fee charged and the second strategy is related to the interest paid.

Since both the strategies throw a vice- versa impact, it is important that banks attempt to

establish a correlation between two. It is essential that both the buyers as well as the sellers have

feeling of winning.

POWER PLUS ACCONT:

We bring to you a product that reflects and matches your financial needs and requirements

at every step. Power Plus account allows you to access a complete suite of product and services

and enjoy world class banking experience, complimenting your professional and personal goals.

This account helps you take complete charge of your banking by providing multiple channel and

products and a wide range of benefits to help your time and money. We have a set of alternate

channels to meet your needs ATM's, Phone banking, Mobile

banking, Internet banking.

25% discount on locker rates.

10 other banks ATM transaction free.

Any branch cash withdrawal and deposit limit is Rs.1,00,000/- per day.

Free demand draft within network.

No statement charges.

33
Super Savings Account

Instant Banking

International Debit Card

Family Account

Quick Money Transfer

Easy Payments

Bank on the Move Profit from your Account

Value Added Services

All these features are offered for a minimum balance

of Rs 5,000.

2.4 PLACE

Place mix is the location analysis for banks

branches. There are number a factors affecting the determination of the location of the branch of

bank. It is very necessary a bank to situated at a location where most of its target population is

located.

Some of the important factors affecting the location analysis of a bank are:

1. The trade area

2. Population characteristics

3. Commercial structure

4. Industrial structure

5. Banking structure

34
6. Proximity to other convenient outlets

7. Real estate rates

8. Proximity to public transportation

9. Drawing time

10. Location of competition

11. Visibility

12. Access

1. The Trade Area:

The trade area is a very important factor determining the place where a bank branch

should be set up. For e.g. a particular location maybe a huge trading place for textiles, diamonds

or for that case even the stock market. Such locations are ideal for setting up of bank branches.

2. Population Characteristics:

The demography of a place is a very important factor. This includes:

The income level of the population

The average age

The average male female population

The caste, religion, culture and customs

The average spending and saving habit of the people.

35
These factors are very important for a bank as the help them decide the kind of business the

branch will get.

3. Commercial Structure:

The commercial structure refers to the level of commerce i.e. business activities taking

place at a particular location. The higher the level of business activities taking place in a

particular location the more preferable it is for setting up a bank branch.

4. Industrial Structure:

This is nothing but a combination of the trade area analysis and the commercial structure.

However the industrial structure focuses more on the kind of industries operating in a particular

location. For example, an area like SEEPZ is marked with a lot of electronic manufacturing

units.

5. Banking Structure:

The Banking structure refers to the existence of other banks in the area. Whether there is

already an efficient network of other bank branches operating at that particular area. Thus the

overall infrastructure needed for the working of a bank.

6. Proximity of other convenient outlets:

This refers to the other branches of the same bank as well other commercial, entertainment

and industrial outlets.

36
7. Real Estate Rates:

This is mainly dealing with the cost factor involved in opening up a bank branch at a

particular location. The real estate rate is a very strong factor influencing the location decision

for a bank branch.

8. Proximity to public transportation:

The location should be proximate to public transportation facilities. This means it should

have bus stops close by as well as it should be proximate to railway stations so as to make it

convenient for the common man

9. Drawing Time:

Drawing time refers to the time period during which a customer can draw money from the

banks. It should be

convenient to the customer and somewhat flexible to accommodate the customers needs. No

bank has more than a certain amount with them and in case a customer wants to withdraw an

amount more than that available with the bank, the bank needs to draw that amount from other

banks. Hence, a location must be such that it facilitates minimum drawing time.

10. Location of Competition:

The existence of other banks also means competition. If the level of

competition is very high in a particular location, it is necessary that a bank

does a lot of market research before opening a branch so as to estimate the

37
kind of business it would get.

10. Visibility:

The location of a branch should be such that it is visible and easily noticed by the

customers as well other people.

11. Access:

The bank branch should be very easily accessible to the customers. If this is not the case,

the customer might switch to some other bank, which is more convenient to him and very easily

accessible. The location should be such that it is very convenient for the customer to reach.

2.5 THE PEOPLE

Sophisticated technologies no doubt, inject life and strength to our

efficiency but the instrumentality of sophisticated technologies start

turning sour id the human resources are not managed in a right

fashion. We cant deny the fact that if foreign banks are performing

fantastically; it is not only due to the sophisticated information

technologies they use but the result of a fair synchronization of new information technologies

and a team of personally committed employees. The moment they witness lack of productive

human resources even the new generation of information technologies would hardly produce the

desired results. In addition to the professional excellence, the employees working in the foreign

banks are generally value- based. Thus we accept the fact that generation of efficiency is

substantially influenced by the quality of human resources. The quality for banking sector is an

aggregation of all the properties, which are found essential for generating the efficiency and

38
projecting a fair image. Even efficiency essentially is supported by ethical dimension, humanity

and humanism.

The development of human resources makes the ways for the formation of human capital.

Human resources can be developed through education, training and by psychological tests. Even

incentives can inject efficiency and can motivate people for productive and qualitative work.

2.6 THE PROCESS

Flow of activities:

All the major activities of banks follow RBI guidelines. There has to be adherence to

certain rules and principles in the banking operations. The activities have been segregated into

various departments accordingly.

Standardization:

Banks have got standardized procedures got typical transactions. In fact not only all the

branches of a single-bank, but all the banks have some standardization in them. This is because

of the rules they are subject to. Besides this, each of the banks has its standard forms,

documentations etc. Standardization saves a lot of time behind individual transaction.

Customization:

There are specialty counters at each branch to deal with customers of a particular scheme.

Besides this the customers can select their deposit period among the available alternatives.

39
Number of stores:

Numbers of steps are usually specified and a specific pattern is followed to minimize time taken.

Simplicity:

In banks various functions are segregated. Separate counters exist with clear indication. Thus a

customer wanting to deposit money goes to deposits counter and does not mingle elsewhere.

This makes procedures not only simple but consume less time. Besides instruction boards in

national boards in national and regional language help the customers further.

Customer involvement:

ATM does not involve any bank employees. Besides, during usual bank transactions, there is

definite customer involvement at some or the other place because of the money matters and

signature requires.

40
2.7 THE PHYSICAL EVIDENCE

The physical evidences include signage, reports, punch lines, other tangibles, employees

dress code etc. The companys financial reports are issued to the customers to emphasis or

credibility. Even some of the banks follow a dress code for their internal customers. This helps

the customers to feel the ease and comfort:

Signage: each and every bank has its logo by which a person can identify the company. Thus

such signages are significant for creating visualization and corporate identity.

Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, cheque

books, etc reduce the inherent intangibility of services.

Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the

bank. Banks have influential punch lines to attract the customers.

Banking marketing consists of identifying the most profitable markets now and in future,

assessing the present and future needs of customers, setting business development goals, making

plans-all in the context of changing environment.

41
 CHAPTER NO: 3 RESEARCH METHODOLOGIES

3.1 SIGNIFICANCE OF THE MARKETING RESEARCH

The most important function of management in a organization is to take correct decision,

minimizing the risk and uncertainty through rational and scientific decision making. Better and

fruitful decision result from the right information about consumer, retailers, competitors and

others. Thus, in this way management can be regards as the game of handling information. If the

manager fails to handle the information effectively, be is unable to make the required decision

correctly and result will be mismanagement.

Marketing Research is usually conducted to achieve the following objective.

1. To know about the person why buy the firms products

It tries to reveal the number of person and the frequency of their buying and the sources

of their buying, their social status and regional location of the customers.

2. To find out the impact of promotional effort

This facilitates appraising and improving the methods of sales promotion. It also leads to

measure the effectiveness of advertising. Pricing policy and channel of distribution.

3. To know about customer's response

Marketing research helps in sales forecasting and marketing planning. The researcher

makes forecast on the basis of response from customer and distribution media.

4. To forecast sales

Marketing research help in sales forecasting and marketing planning. The researcher

makes forecast on the basic of from customer and distribution media.

42
5. To study the goodwill of the firm in comparison to its competitor firms.

This helps in reveling the important information regarding the faith of customer and

retailer faith in the organization, that of competitor organization, new product and

substitutes entering the market and their impact the firm's product.

43
3.2 MARKETING RESEARCH PROCESS

Effective marketing research involves the six steps, which is shown in the picture below.

RESEARCH PROCESS

Define the Research

Problem & Object

Develop the
Research Plan

Data Collection

Data Analysis

Present the Findings

Make the Decision

Fig. 3 Research process chart

44
3.3 Method Of Study

Since we know that Amul has a very vast market share in pouch milk Industry and it is good for

the company that the other company presence as well as local made pouch milk is very less in

present.

In future company wants to maintain of share in this segment. It will emphasize mainly to areas.

1. Competition Analysis

2. Consumer buying behavior.

An in order to do same a detailed study needed to be conducted. The same was conducted in

following manner.

Tools and Techniques

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-

- Bar Charts

- 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 cahrts 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 anybody could know that what is being said.

45
Technological Tools

Ms- Excel

Ms-Access

Ms-Word

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.

Applied Principles and Concepts

While I started to do the project the main thing which was the matter of concern was that around

what principles I have to revolve my project. Because with out having any hypothesis and

objective we can not determine that what output or result we are expecting form the project.

And second thing is that having only tools and techniques for the purpose of project is not

relevant until unless we have the principals for which we have to use those tools and techniques.

46
Mathematical Averages

Standard Deviation

Correlation

Sources of Primary and Secondary data:

For the purpose of project data is very much required which works as a food for process which

will ultimately give output in the form of information. So before mentioning the source of data

for the project I would like to mention that what type of data I have collected for the purpose of

project and what it is exactly.

1. Primary Data:

Primary data is basically the live data which I collected on field while doing cold calls with

the customers and I shown them list of question for which I had required their responses. In

some cases I got no response form their side and than on the basis of my previous

experiences I filled those fields.

Source: Main source for the primary data for the project was questionnaires which I got

filled by the customers or sometimes filled myself on the basis of discussion with the

customers.

2. Secondary Data:

Secondary data for the base of the project I collected from intranet of the Bank and from

internet, RBI Bulletin, Journal by ICFAI University.

47
Statistical Analysis

In this segment I will show my findings in the form of graphs and charts. All the data which I got

form the market will not be disclosed over here but extract of that in the form of information

will definitely be here.

Detail:

Size of Data : 60-70

Area: Delhi

Type of Data : 1. Primary

2. Secondary

Industry: Banking

Respondent: Customers

48
3.4 OBJECTIVES

To know about environmental factors affecting IDBI Banks performance.

To analyze the role of advertisement for bank performance.
To know the perception and conception of customers towards banking products and
specially focused for IDBI Banks product.
To explore the potential areas for the new bank branches which will provide both price
and people to the bank with constant promotion and placing strategy.
To ascertain from the customers the type of bank they would prefer for operating their
accounts.
To identify the various types of services offered by banks which the customers are
presently availing and which type of services are preferred over others.
To check the level of satisfaction about the different types of services offered by the
banks.
To ascertain the ideal level of services which they expect from the bank.
To identify the extent of segmentation gap among the services offered.

3.5 PURPOSE

The purpose of IDBI Bank is to become top leading bank industries in india

3.6 SCOPE OF THE STUDY

Scope of the study could give the projected scenario for a new successful strategy with a proper
implementation plan. Whatever scope I observed in my project are not exactly having all the
features of the scope which I described above but also not lacking all the features.

49
3.7 LIMITATIONS

Owing to the time constraint the study was restricted to New Delhi city. A wider

geographical coverage would have made it a more representative study.

Although every effort has been made to include the respondents belonging to various age

- group, even then the sample may not be truly representative of the universe.

The size of sample taken was very small and hence the results of this study might not be

fully reliable for generalization.

Every effort was made to extract the correct information from the respondents, but the

ignorance on their part could have played its role.

Best efforts have been made to incorporate all the important variables in the study yet

chances of some of the variables not appearing in the study cannot be ruled out.

Open-ended questions were added to provide flexibility to the respondents but many of

them were left unanswered.

50
 CHAPTER NO: 4 DATA ANALYSIS AND INTERPRETATION

Table 1: Correlation between awareness of customers about IDBI bank & their Age

AGE NO. OF RESPONSE

20-25 25

25-30 46

30-35 34

35-40 23

40-45 21

45-50 22

50-60 24

60-ABOVE 55

60
R 50
E
40
S
P 30 NO. OF RESPONSE
O 20
N
10
S
E 0
S 20-25 25-30 30-35 35-40 40-45 45-50 50-60
60-ABOVE

AGE GROUP

Fig. 4 Correlation between awareness of customers about IDBI bank & their Age

51
TABLE 2: PERCEPTION OF IDBI AS A BANK

TYPE OF BANK RESPONSES

PRIVATE 50

PUBLIC 45

PRIVATE/PUBLIC 100

DON'T KNOW 55

RESPONSES

DON'T KNOW PRIVATE PRIVATE

PUBLIC
PUBLIC PRIVATE/PUBLIC
PRIVATE/PUB DON'T KNOW
LIC

Fig. 5 PERCEPTION OF IDBI AS A BANK

52
TABLE 3 : RATING OF CUSTOMERS FOR IDBI BANK AS A GOOD BANK

PARAMETER RESPONSES

EFFICIENCY 75%

INTERNET BANKING/ATMs 25%

PRODUCT RANGE 95%

NETWORK 33%

PHONE BANKING 22%

22%
33% EFFICIENCY
75%
INTERNET
BANKING/ATMs
PRODUCT RANGE

NETWORK
95%
PHONE BANKING
25%

Fig. 6 RATING OF CUSTOMERS FOR IDBI BANK AS A GOOD BANK

53
TABLE 4: MARKET SHARES IN DELHI IN COMPARISION TO COMPETITORS

BANK NAME % OF SHARE

SBI 30%

IDBI 15%

ICICI 25%

PNB 10%

HDFC 5%

HSBC 5%

OTHERS 10%

SBI
30%
ICICI
25% SBI
IDBI
20%
IDBI ICICI
15% PNB
PNB OTHERS HDFC
10%
HSBC
HDFCHSBC
5% OTHERS

0%
% OF SHARE

Fig. 7 MARKET SHARES IN DELHI IN COMPARISION TO COMPETITORS

54
TABLE 5: FACTORS RESPONSIBLE FOR PERFORMANCE OF IDBI BANK IN

NOIDA

PARAMETERS % OF SHARE

PRODUCT 50%

ADVERTISMENT 5%

MANPOWER 25%

NET-BANKING 2%

PHONE BANKING 5%

INVESTMENT SCHEME 10%

NETWORK 3%

60%
50%
50% PRODUCT
ADVERTISMENT
PERSENTAGE

40%
MANPOWER
30% 25% NET-BANKING
PHONE BANKING
20%
INVESTMENT SCHEME
10%
10% 5% 5% NETWORK
2% 3%
0%
% OF SHARE
PARAMETERS

Fig. 8 FACTORS RESPONSIBLE FOR PERFORMANCE OF IDBI BANK IN NOIDA

55
TABLE 6:COMPARATIVE STUDY WITH MAJOR COMPETITORS ON BASIC

PARAMETERS

CANARA
PARAMETERS/BANKS IDBI ICICI SBI PNB HSBC
BANK

PRODUCT 20% 15% 30% 15% 10% 10%

ADVERTISMENT 3% 45% 15% 20% 7% 10%

MANPOWER 10% 50% 2% 3% 25% 10%

NET-BANKING 3% 50% 10% 12% 8% 17%

PHONE BANKING 10% 40% 5% 5% 30% 10%

INVESTMENT SCHEME 5% 25% 50% 10% 5% 5%

NETWORK 2% 40% 40% 5% 3% 10%

CREDIBILITY 20% 10% 40% 20% 5% 5%

COMPARATIVE GRAPHS

60%
PERCENTAGE

50%
PRODUCT
40%
30% ADVERTISMENT
20% MANPOWER
10%
0% NET-BANKING
PHONE BANKING
I
I

K
B
IC

BI
B

AN
ID

S
IC

S
P

INVESTMENT SCHEME
H

B
A
R

NETWORK
A
N
A

CREDIBILITY
C

BANKS

Fig. 9 COMPARATIVE STUDY WITH MAJOR COMPETITORS ON BASIC

PARAMETERS

56
TABLE 7: THE EFFECTIVENESS OF COMMERCIALS OF IDBI BANK

DAYS AFTER THE AD IS

SEEN POSITIVE RESPONSE

0-5 days 100

6-10 days 67

11-15 days 43

more than 15 days 40

POSITIVE RESPONSE
REMEMBERED THE AD

120
NO. OF PEOPLE

100
80
60 POSITIVE RESPONSE
40
20
0
0-5 days 6-10 11-15 more
days days than 15
days
NO. OF DAYS AFTER AD

Fig. 10 THE EFFECTIVENESS OF COMMERCIALS OF IDBI BANK

57
 CHAPTER NO: 5 FINDINGS OF THE STUDY

The credibility of IDBI bank is good in comparison to its competitors as GOI

(Government Of India) is a major shareholder in the company.

IDBI bank has potential a tapped market in DELHI in region and hence has an

opportunities for growth.

The products of IDBI bank have good credibility in the region compare to its

competitors.

The advertisement of the bank was very effective from the first day of its airing till the

fifth day and there after it starts declining.

The initial balance for A/C opening is Rs, 5000/- and thats why people are reluctant in

opening the same.

58
5.1 RECOMMENDATIONS

Since there is only 1767 branch of IDBI bank and 3000 atms in Delhi, so it is necessary

for IDBI bank to open more branches and install more atms to serve the vast market of

Delhi especially.

More resources should be allocated in the market of Delhi as there is big untapped market

in Delhi, so it becomes necessary for IDBI bank for taking an edge over the competitors.

A short advertising campaign in Delhi has produced good results in a short span of times,

so to gain long term benefits is very necessary for IDBI bank to carry on this campaign

with more intensity.

Besides opening more branches it should also look for opening some extension counter in

Kutub near meherauli and one in Khanpur.

As Government is the majority share holder in the shares of IDBI bank, which makes this

bank more reliable than other private banks, this thing can be used in the favour of IDBI

bank by making people aware about this fact and winning their faith.

59
5.2 CONCLUSION

Consumers of Delhi have good awareness level about IDBI bank as well as about its

services and products.

The advertising campaign has successfully been able to increase the market share of IDBI

in Delhi.

The modern days technology like internet banking, phone banking, used by IDBI bank

for providing banking services has sent positive signals in the mind of consumes.

The network of IDBI in Delhi is lagging behind a little than its competitors like ICICI

bank and HDFC bank.

It can be distilled from data that IDBI bank has good market share as compared to its

competitors considering the amount of resources deployed by them in the market.

60
 REFERENCES

http://www.marketing91.com/swot-analysis-idbi-bank/

http://www.slideshare.net/DeepikaAgrawal/summer-project-report

http://www.scribd.com/doc/27385336/Introduction-of-IDBI-Bank

http://finance.taaza.com/topic/disadvantages-idbi-bank

http://www.4psbusinessandmarketing.com/03112011/storyd.asp?sid=4944&pageno=1

http://www.businessdictionary.com/definition/marketing-strategy.html

http://en.wikipedia.org/wiki/National_Pension_Scheme

http://www.jagoinvestor.com/2009/05/nps-new-pension-scheme-detailed.html

61
 APPENDIX: QUESTIONNAIRE

NAME

AGE. SEX: MALE/FEMALE

ADDRESS:...

CITY

PIN CODE....

CONTACT NO.

1. DO YOU KNOW ABOUT IDBI BANK LTD.?

YES NO

2. IDBI BANK IS A

PRIVATE BANK PRIVATE/PUBLIC BANK

PUBLIC BANK DONT KNOW

3. RANK THE IDBI BANK ON THE FOLLOWEING FEATURES (RANK 1 FOR BEST

AND 5 FOR WORSE ON 1 TO 5 SCALE)

EFFICENCY MANPOWER

INTERNET BANKING/ATMs NETWORK

PRODUCT RANGE PHONE BANKING

62
4. YOU WOULD LIKE TO BE A CUSTOMER OF BANK BECAUSE

5. YOU WOULD NOT LIKE TO BE A CUSTOMER BANK BECAUSE-

6. NAME THE BANK WHICH COMES IN YOUR MIND AT VERY FIRST AND WHY?

....

7. DO YOU THINK IDB IBANK IS A SAFE PLACE FOR YOUR MONEY?

YES NO

8. DO YOU THINK IDBI BANK NEED MORE ADVERTISMENT?

YES NO

9. YOUR LEVEL OF SATISFACTION WITH IDBI BANK-

VERY SATISFIED SATISFIED

NORMAL DISSATISFIED

VERY DISATISFIED.

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10. IF YOU WILL HAVE OPTION AGAINEST IDBI BANK YOU WILL GO FOR

SBI PNB

ICICI OTHER

11. DO YOU REMEMBER THE COMMERCIAL OF IDBI BANK?

YES NO

12. WHEN DID YOU LAST SEE THE ADVERTISEMENT OF IDBI BANK?

0-5 DAYS BACK 6-10 DAYS BACK

11-15 DAYS BACK MORE THAN 15 DAYS BACK

13. DO YOU KNOW WHERE IS THE BRANCH OF IDBI LOCATED IN SAKET?

14. IDBI BANK LTD. IN SAKET IS EFFECTIVE BECAUSE-

15. IDBI BANK LTD. IN SAKET IS NOT EFFECTIVE BECAUSE-

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16. IDBI BANK LTD. IS A GOOD BANK FOR-

SERVICE PEOPLE BUSINESS PERSONS

POLITICIANS GENERAL PUBLIC

ALL OF ABOVE

17. NAME IDBI BANK LTD. GIVE BLUE-PRINT IN YOUR MIND OF-

HIGH NETWORK FINANCILALLY EFFICIENT BANK

HI-TECH BANK CUSTOMER FRIENDLY

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