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MARKET POTENTIAL OF

STANDARD CHARTERED BANK


SAVING ACCOUNTS

Industry Guide – Mr. Nitish Dipankar

Faculty Guide – Ms. Pooja Singh

Submitted by –
Amitabh Dixit
Roll No. 200501302
PGDM
Amity Business School
ACKNOWLEDGEMENT

I express my sincere thanks to the management of Standard

Chartered Bank, Karol Bagh, New Delhi, for providing me an

opportunity to undergo summer training in their esteem

organization.

My success at Standard Chartered Bank was because of the

contribution and guide provided to me by the Bank itself.My

sincere acknowledgements are due to them.

I express my gratitude to Mr. Nitish Diapankar (Officer-

Wealth Management) for providing me necessary information

and guidance during my training period.The Project was

completed successfully with his valuable cooperation.

Last but not least I would like to thank all the respondents for

giving their precious time and relevant information and

experience, I required,without which the Project would have been

incomplete.

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Amitabh Dixit

SYNOPSIS

The central bank of India is the Reserve Bank: most large


commercial banks were nationalized in 1969, with more
being nationalized in 1980. The Department of Banking at
the Ministry of Finance controls all banking. The State Bank
of India, the largest commercial bank, handles some of the
Reserve Bank’s roles. Cooperatives and credit societies are
an important supplement to the private banking industry,
especially in rural areas.

The Entry of Foreign Banks in the Early 1990’s has brought


about a Revolution in the Banking industry. The superior
service level of these Banks have forced even the
Nationalized Banks to wake up to the reality that if they do
not live up to the customers expectation they will soon cease
to exist.

Indian Banking Industry, today is in the midst of an IT


revolution. A combination of regulatory and competitive
reasons have led to increasing importance of total banking
automation in the Indian Banking Industry.

Earlier profitability gained only secondary importance, since


banks lived in the comfort of a controlled environment.
However, today banks cannot survive only with the
Government support. They have to set goals of profitability
along with service and set targets and evolve strategies to
reach them.

There is certainly a paradigm shift in banking in India in the


recent past. At present profitability, capital restructuring and

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transparency are considered important and significant for
banks. Also, banks in India have started realizing the need
to be ‘customer focused’ that in turn leads to ‘customer
appreciation’,which is imperative for survival and growth.

The first change along this line was brought in by the foreign
banks with their emphasis on high quality and efficient
service combined with technological advantages like satellite
banking and tele-banking manned by skeletal staff and
lesser number of branches.

Further, development of special manpower, innovative


products, technology exploitation and personalized services
play a crucial role on the banking industry today, since the
customer has more options in choosing bank. Thus leading
to consumerism in the banking sector. Also, since
customers are becoming more sophisticated and educated,
their expectation from the neighborhood bank is increasing.
To sum, the new private sector banks are poised to redefine
banking sector in India. Though they don’t pose a threat to
the existing private banks they will certainly force them to
gear up their strategies to remain in the field.

The last few years have seen a sea change in banking


strategies, with more focus on quality. The adoption of a
specialized customer-oriented focus is fast getting wider
acceptability. In a market that keeps growing in depth and
diversity, niche banking is new mantra adopted by all.
Thus, instead of targeting an entire market segment, banks
have adopted a specific business focus to reach their target
audience.

Over the last few years, the communication style too has
changed with respect to the banking industry.
Communication has shifted from branding the bank to
branding banking products, highlighting service
commitments, convenience, etc. Further, branding of

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banking products such as home loans, consumer
durable loans, tele banking, ATMs, net banking etc
have started taking place, especially after the entry of
foreign banks and private sector banks which had the
advantage of the latest technology.

Banks like Standard Chartered, ICICI, HDFC, and Citibank


now bring your Bank Account and Credit card to your
fingertips. With Mobile commerce, you can perform a wide
range of query-based transactions from your Mobile Phone,
without even making a call.

Standard Chartered Bank is the largest international banking


group in India with an employee base of nearly 3500 people
across the country. It has the largest branch network all
over India (63 branches in 23 cities ) amongst all
international banks in India. With over 2.3 million retail
customers , and a credit card base of 1.3 million , the Bank
is a leader in consumer Banking business.

The graph below shows the Market share of the Nationalized


and Private Banks in India and the share of Standard
Chartered Bank.

Market Share

Private/Foreign Standard
Banks Chartered Bank
4% 1%

Nationalized
Banks
95%

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The Aim of Standard Chartered Bank is to increase it’s
market share by capturing the customers of the Other
Private Banks and the Nationalized Banks.
The share can also be increased if the Bank is successful in
convincing new people (children, students ,ect) to hold
accounts with the Bank.

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SAVING ACCOUNT

WHAT IS A SAVINGS ACCOUNT

An account primarily opened for & operated by


individuals , wherein the number of transactions are few
and which give the customer liquidity , with the facility
to earn some interest on the residual balances.

• Purpose and Description :

The savings accounts is a transaction account wherein a


deposit is placed with the bank for an unspecified
period of time.

The depositor can withdraw the money whenever


required through any of the following means:

Withdrawl slip, cheques, transfer, through an ATM or


Debit Card, standing instructions, remittances or by
making purchases made on a linked Debit Card at
merchant establishments.

• Interest Paid :

Interest on the is determined in accordance with


directives of the Reserve Bank of India.

Interest is calculated on the minimum credit balance


between the close of the business on the 10th. & the
last day of each calendar month.

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Interest is paid on quarterly rests.

• Eligibility :

Individuals

Trusts / Societies / Charitable Organisation

HUF’s ( for individuals for the sole purpose of savings


& not for the purpose of business )

Resident Indians & Foreign Nationals.

• Product Features :

Account can be in Sole name or joint names.

Average Quarterly Balance

Average quarterly balance of Rs.10,000 to be


maintained.

Non - maintenance of AQB attracts a ledger fees of


Rs.750/- per quarter.

Transaction oriented account : Mode of transaction


through chequebooks, ATM Card or Debit Card.

Account can be operated at any of our branches


across the country , 365 days a year from 10 A.M -7
P.M.

Account can be accessed through the internet.

Phone – Banking and Doorstep – Banking Services.

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Free Accidental Insurance from Royal Sundaram along
with the account.

• Facilities Available

Statement of accounts at any desired


frequency
■ Quarterly
■ Monthly
■ Weekly
■ Daily
■ Option of not availing the facility

Demand drafts / payorders at nominal charges

Local & outstation clearing

Standing instructions

To make regular recurring payments

Instant transfer of funds between an account


in one branch & a self styled account in
another

Power of attorney to operate the account can


be given to the third party.

Stop payment of cheques.

Personalised cheque books & multicity cheque


books.

The option of a picture or photo debit card


along with an add – on card.

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Issuance of traveller’s cheques

Special services like Banker’s Report , Signature


Verification, Certificate of balance or interest
foreign Inward Remittance Certificate available.

• Minor Saving Account

Account is opened in the name of minor .

Gaurdian has to be a co – holder.

Account clubbed with all the other accounts of


the guardian for taxation purposes.

Converted to a normal saving account once


the minor attains majority (18 years).

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COMPANY PROFILE

A BRIEF HISTORY OF STANDARD


CHARTERED BANK

The Standard Chartered Group is an unusual banking


business. Although its roots are clearly british its area
of operations, its network and indeed its profits stream
are overwhelmingly international.

The name Standard Chartered comes from the two


original banks from which it was founded - The
Chartered Bank of India, Australia and China, and The
Standard Bank of British South Africa.

The Chartered Bank was founded by James Wilson


following the grant of a Royal Charter by Queen
Victoria in 1853, while The Standard Bank was founded
in the Cape Province of South Africa in 1862 by John
Paterson. Both Companies were keen to capitalize on
the huge expansion of trade and earn the handsome
profits to be made from financing the movement of
goods from Europe to Africa.

In those early years, both banks prospered Chartered


opens its first branch in Bombay,Calcutta and Shanghai
in 1858, followed by Hong Kong and Singapore in
1859. With the opening of sub Canal in 1869 and the
extension of telegraph to China in 1871, Chartered was
well placed to expand and develop its business.

Traditional business was in cotton from Bombay, indigo


and tea from Calcutta, rice in Burma,sugar from Java,

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tobacco from Sumatra, hemp in Manila and silk from
Yokohama.

In South Africa, Standard, having established a


considerable number of branches, was prominent in
financing the development of the diamond fields of
Kimberley from 1867 and later extended its network
further north to the new town of Johanesburg when
gold was discovered there in 1885. The output of
second largest gold field in the world passes through
The Standard Bank on its way to London.

Both Banks at that time still quiet separate companies


- survived the First World War and the Depression, but
were directly affected by the wider conflict of the
Second World War in terms of business and closure of
branches.There were also longer term effects for both
banks as countries in Asia and Africa gained their
independence in the 50’s and 60’s.

Each had acquired along the way and spread their


networks further. In 1969 the decision was made by
Chartered and by Standard to undergo a friendly
merger.They decided to counterbalance their network
with expansion in Europe and United States.

Further expansion took place in Standard Chartered’s


traditional markets in Asia and Africa. All appeared to
be going well, when a hostile takeover bid was made
for the group by Lloyds Bank of United Kingdom in
1986.

When the bid was defeated, Standard Chartered


entered a period of change. Like many British ban
provisions had to be made against third World debt
exposure and against loan to Corporations &

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enterepreneures who could not meet their
commitments.

Standard Chartered began a series of divestments


notably in the United States & South Africa, & also
entered into a number of asset sales.

In mid 1993, Sir Patrick Gillam became Chairman.


He made it clear that Standard Chartered would grow
& develop its strong franchises in Asia, Middle East &
Africa using its operations in the United Kingdom and
North America to provide customer with a bridge
between these markets. Secondaly , it would focus on
consumer , corporate and institutional banking , & on the
provision of treasury services – area in which the Group
had particular strength and expertise.

In August 2000 , the US $ 1.34 billion acquisition of


Grindlays Bank was completed. This made Standard
Chartered the leading international bank in India & the
other countries of South Asia, strengthened the Group’s
competitive position in the Middle East and brought to
the Group a respected private banking business.

In September 2000 the Group agreed to acquire


Chase’s Hong Kong consumer banking business for US
$ 1.32 billion, which makes Standard Chartered the
leader in Hong Kong cards. At that time it was also
announced that Chartered Trust had been sold to
Lloyds TSB for £627 millions.

Our Operation

Standard Chartered operates in every Asia Pacific


market with the exception of North Korea & some
60% of the Group’s profits comes from the Asia Pacific
region.

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Hong Kong continues to be of major importance to the
Group & contributes over 30% of total profit. With
around 80 branches in Hong Kong & strong
representation in China , standard Chartered – a note
issuing bank in Hing Kong - is well placed to continue
playing an important part in Greater China’s
development . The Group’s business there is managed
by a resident Group Executive Director.
Consumer Banking , Corporate & Institutional Banking
are managed out of Singapore each by Group
Executive Director resident in the island state. Other
East Asian countries of note for the Group are
Malasiya , Thailand where , in 1999 , the bank acquired a
75% interest & management control of Bank
Nakornthon & Taiwan.

Standard Chartered is the leading international bank in


Sub-Saharan Africa , operating in several countries, the
most prominent being Kenya ,Zambia ,
Zimbabwe, Botswana & Ghana. The Group operations in
the Gulf & South Asia are managed from Dubai.
Consumer Banking - which has some 5 million
customers – has grown significantly in recent years &
contributes about 50% of total profits. Major initiatives
support the rapid development of the credit card
business in the exciting markets of India , Indonesia &
Taiwan.

Corporate & Institutional Banking – its principal


strengths are in supporting regional & international
cross – border trade & investment. Products & services
are focused primarily on these areas, notably trade
banking , cash management & custody. Institutional
Banking manages the Group’s relationship with the
banks , investment companies & other financial
institutions. It aims to be the ‘Banker’s Bank’ opertating

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in the customer’s time zones & providing network
linkage between Internationl Markets. This business has
continued to expand rapidly in Asia, Middle East, Africa
& increasingly in Latin America. It was strengthened in
March 1999 by the acquisition of the trade finance
operation of UBS.

Treasury – operations are a particular Group strength


with a network of over 20 dealing rooms worldwide ,
offering customer a 24 hour service. The bank is
particularly well known for its expertise in exotic
currencies & has reinforced its position as a leader in
many Asian & African markets.

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DIFFERENT TYPES OF SAVING
ACCOUNTS BEING OFFERED BY
STANDARD CHARTERED BANK

aXcess Plus Saving Accounts

Super Value Savings Accounts

Two – in – one aXcess Plus Account

Corporate Executive Account

aXcess Plus Saving Account


‘‘The power of accessing your account . Anywhere ,
Anytime.’’

A power packed savings account , which is an


innovative & convenient solution for all banking needs
of the customer . It comes with a globally valid ATM –
cum –debit – card , which allows one to access money
from any bank’s ATM’s , that has a VISA ELECTRON
sign. Thus, in addition to Standard Chartered bank
ATM’s the customer has a power of accessing his
account from the ATM’s of other banks as well . In
addition , the Debit Card can even be used to make
purchases anywhere in India & abroad from outlets
that display the VISA ELECTRON sign , which includes

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over 25,000 outlets in India & over 10 million outlets
worldwide . It is even accompanied by special offers &
discounts that help the customer get more from his
money.

• Product : Entry level savings account.

• Positioning : A savings account that gives the


best access to your money.

• Average Quarterly Balance : Rs 10,000

• Key Features : Globally valid ATM-cum-Debit Card,


free access to cash at different ATM’s.

• Target Customers : Customers starting their first


or second savings account, currently banking with
PSU/ Pvt. Indian Banks.

• Key Competition : HDFC Bank , ICICI Bank ,


Citibank Suvidha & HSBC.

• Unilimited account access……

Free access to cash at over 2400 ATM’s in


India.

Globally valid Visa Electron Debit Card

Access to Attractive Discounts and Privileges

Access to free insurance benefits : Lost Card


Insurance , Purchase Protection and Personal
Accident cover

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• Unparalleled Account Access…

Unparalleled Cash access

Free access to cash through over 2400


Visa Electron ATM’s in over 80 Cities in
India

Access to over 6,50,000 ATM’s worldwide.

• Shopping Convenience:

Purchase goods and services using


money in your account

Accepted at over 25,000 merchant


outlets in India

Over 10 million merchant outlets


globally

Use your card at any merchant that


displays the Visa Electron sign.

 Loaded with benefits:

Unique free insurance benefits.

Exiciting usage benefits:

Travel Cash back : Discounts on air


fare

Rasoi : Ongoing privileges in


restaurants

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Fab-Deals : Special privileges for
shopping

Discounts at all BPCL IN & OUT


stores and special rates on BPL
electronic items.

Host of other discount

ATM-cum-Debit Card

Product: Deposits access card which provides


ATM access and purchase functionality at
merchant outlets. The caption is “Buy-now-pay-
now” product.

Positioning: Packaged into aXcess Plus savings


account to provide unparalleled account access.

Charges Associated:
Annual charge of Rs 100
Over and above four free transactions from a
competitor bank ATM, a charge of Rs
50/transaction would be levied.

In case of non-maintenance of average


quarterly balance in the account, every
transaction from a different bank ATM would
attract charges of Rs 50/ transaction.

Key Features: Visa Electron Card.

Key Competition: HDFC Bank, ICICI Bank,


Citibank and HSBC.

 Features:

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Deposit access card : Provides access to the
account through ATM’s and through purchase
at merchant outlets.

Amount withdrawn or the purchase amount is


directly debited to the account.
Visa Electron franchise.

Globally valid card.

Accepted at over 25000 merchant outlets in


India and at over 10 million outlets worldwide.
Accepted at over 2400 ATM’s in India and at
over 6,50,000 ATM’s worldwide.

Works as a fully functional ATM card at the


bank’s own ATM’s.

Comes with a lost card insurance of Rs 50,000


The goods purchased through the Debit card
are automatically protected against theft or fire
upto the limit of Rs 15,000.

Super Value Savings Account

A savings account where the Average Quarterly Balance


to be maintained is Rs 50,000 and a whole lot of
value added services are offered free of cost which
otherwise would be charged in case of a normal
aXcess plus savings account.

Product : Upgrade savings account.

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Positioning : a savings account that gives you
more value for your money.

Average quarterly balance : Rs 50,000

Key Features : Free debit card, basket of free


services and discounts.

Target Customers : customers who wish to upgrade


from a basic savings account and enjoy convenience
banking.

Key Competition : Citibank and ABN-AMRO

KEY FEATURES

Free Debit Card.

Free Demand Drafts/ Pay Orders

Free ATM- cum-Debit Card

Free cash delivery

Free Draft delivery

Free Payable at par cheques

Free FIRC’s

Free investment advisory services

Free standing instructions

Free remittances

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All other features and benefits of the aXcess Plus
saving account

Free accidental policy of Rs.2.5 Lakhs

KEY VALUE

Special pricing on lockers

Free monthly statement of accounts

Preferential rates on drafts drawn on other locations

Free cheque collection for cheques drawn at our


branch locations

Free cheque stop payment facilities , free banker’s


report , free signature verification

Free multicity cheque book

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STANDARD CHARTERED FOR NRI

NRI PRODUCTS

Opening of accounts in the name of Non Residents is


subject to Exchange Control Regulations is subject to
Exchange Control Regulations . However, authorized
banks can freely open accounts in the name of Non
Resident Indians. The operations in these accounts are
subject to Exchange Control Regulations.

“ A non-resident Indian is an Indian citizen who is


residing abroad for an indefinite period for the purpose
of employment , business or other purposes.”

Non Resident Indians can open the following accounts:

1. Non Resident Ordinary Account (NRO)

This is like any other resident account, which is


maintained in Indian Rupees. It can be opened as
a savings or a current account, but the credits
allowed into this account can only be in Indian
Rupees (INR). Thus, the customer has the
convenience of having an account to credit all his
income earned out of investments in India. Be it
income from rentals, dividends, proceeds of
insurance policies or any other non – repatriable
investments. He can also use this account for
outgoing payments like monthly instalments . The
interest earned on the funds in this account is
repatriable.

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2. Non Resident External Account (NRE)

This account is the best solution for NRI’s wanting to


hold Rupee deposits as it offers a dual advantage. One
they can freely access their funds in Rupees while in
India and two, they can convert the same funds into
foreign currency and repatriate it abroad any time they
wish, this means that the interest along with the
principle is fully repatriable. Only foreign currency
credits are allowed in this account, which are converted
into INR.

3. Foreign Currency Non Resident Account


(FCNR)

This is opened only in four designated currencies and


it is an excellent option for holding term deposits in
foreign currency in India. The vital feature of this
deposit is that the savings are protected against
fluctuations in the interest rate. So the NRI can safely
invest in US Dollar, Pound, Japanese Yen and Euro. The
principle and the interest are completely repatriable.

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Multiple Delivery Channels

Today the technology driven banks are finding various


means to reduce costs and reach out to as many customers
as possible spread over a diverse area. This has led to using
multiple channels of delivery of their products.

ATM (Automatic Teller Machine) :

An ATM is basically a machine that can deliver cash to the


customers on demand after authentication. However,
nowadays we have ATMs that are used to vend different
FMCG products also. An ATM does the basic function of a
bank’s branch, i.e., delivering money on demand. Hence
setting of newer branches is not required thereby
significantly lowering infrastructure costs.

Cost reduction is however possible only when these


machines are used. In India, the average cash withdrawal
per ATM per day has fallen from 100 last years to 70 this
year. Though the number of ATMs has increased since last
year, it is not in sync with the number of cards issued. Also,
there are many dormant cardholders who do not use the
ATMs and prefer the teller counters. In spite of these odds,
Indian banks are increasing the number of ATMs at a
feverish pace. These machines also hold the keys to future
operational efficiency.

Net Banking:

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Net banking means carrying out banking transactions via the
Internet. Thus the need for a branch is completely
eliminated by technology. Also this helps in serving the
customer better and tailoring products better suited for the
customer.

A customer can view his account details, transaction history,


order drafts, electronically make payments, transfer funds,
check his account position and electronically communicate
with the bank through the Internet for which he may have
wanted to visit the bank branch.
Net banking helps a bank spread its reach to the entire
world at a fraction of the cost.

Phone Banking:

This means carrying out of banking transaction through the


telephone. A customer can call up the banks help line or
phone banking number to conduct transactions like transfer
of funds, making payments, checking of account balance,
ordering cheques, etc. This also eliminates the customer of
the need to visit the bank’s branch.

Mobile Banking:

Banks can now help a customer conduct certain transactions


through the Mobile Phone with the help of technologies like
WAP, SMS, etc. This helps a bank to combine the Internet
and telephone and leverage it to cut costs and at the same
time provide its customer the convenience.
Thus it can be seen that tech savvy banks are tapping the
entire above alternative channels to cut costs improve
customer satisfaction.

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The Importance of Choosing a Correct
Distribution Channel

The promise of lower transaction costs, increased sales


productivity, and more convenient service has lured banks
into setting up new delivery channels. Earlier, vast brick and
mortar branch network has been considered as an inherent
advantage of established banks and new entrants were at
huge disadvantage vis-à-vis the established players in terms
of customer reach.

However, post 1990s new players are effectively taking on


the branch network advantage of the established players by
optimally leveraging technology and cost-effective delivery
channels.

The foundation for creating such delivery channels is


superior insights into customer behaviour. These can come
in many forms, but at their most basic they entail
understanding customer needs for the delivery of different
products, how these needs vary by customer types
(including small businesses), current customer behaviour
(especially as it relates to channel usage), and customer
profitability. It is this multifaceted understanding of
customers that yields actionable implications for distribution
strategy.

The steps to be followed in making a new distribution


channel successful:

Understand customers’ current channel/transaction


behaviour.

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Use sophisticated experimental customer research to assess
the economic impact of tactics designed to change that
behaviour

Design non-branch channels to emphasize personalized


interaction to counteract decreased loyalty due to using
artificial intelligence.

Situation in India

Turning our attention to delivery channels used by banks in


India, in comparison with their international counterparts, it
is observed that the banks are yet to exploit the delivery
channels to the maximum extent technology permits.

Inspite of their advantages, reliance on technology based


delivery channels often exacerbates traditional risks:
operational risk (since it requires changes in procedures),
reputational risk (if the bank fails to deliver secure, accurate
and timely service) and legal risk (uncertainty about which
legislation applies to e-banking transactions), besides
emergence of other risks (business and credit risks).

ATMs still remain the most successful delivery channel


followed by telephone banking and internet banking.

With about 9000 off-site and on-site ATMs installed, banks


are effectively reaching out to a large customer base at a
substantially lower cost. Typically, it costs close to Rs.50 per
transaction if conducted in a branch and the same if done
through ATM costs about Rs.15.

In order to reduce the cost of transaction banks have started


out-sourcing and sharing of ATM services and this trend will
gather momentum in near future. As this delivery channel
gains mass acceptability and is user friendly, the bank can

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use it to cross-sell its as well as others’ products. For
example, banks have already started dispensing railway
tickets, movie tickets through their ATMs.

Internet Banking-an emerging delivery channel-offers


significant cost advantage to banks. A net-based transaction
costs the bank only around Rs. 4 and costs per transaction
are even lower than those of an ATM, mainly due to savings
on prohibitive real estate costs.
Internet Banking has failed to take off due to a combination
of psychological, legal, technological and socio-economic
factors. Lack of critical mass of early adopters, lack of a
strong trust environment, slowness in adoption of the
internet, low penetration of PCs and access to internet are
some of the impediments in the adoption of internet banking
in India.

With drastic fall in cell phone tariff and emergence of


seamless connectivity between fixed and mobile lines,
mobile banking is set to emerge as one of the cost-effective
delivery channels in near future.

Toll-free-numbers would also gain popularity as an


important delivery channel. Although banks abroad are using
call centre as a delivery channel for some time, banks in
India have just begun to exploit it as an effective non-
branch delivery channel.

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INTERNET BANKING

INTRODUCTION

The Internet banking is changing the banking industry and is


having the major effects on banking relationships. Internet
banking involves use of Internet for delivery of banking
products & services. It falls into four main categories, from
Level 1 - minimum functionality sites that offer only access
to deposit account data - to Level 4 sites - highly
sophisticated offerings enabling integrated sales of
additional products and access to other financial services-
such as investment and insurance.

DRIVERS OF CHANGE

Advantages previously held by large financial institutions


have shrunk considerably. The Internet has leveled the
playing field and afforded open access to customers in the
global marketplace. Internet banking is a cost-effective
delivery channel for financial institutions. Consumers are
embracing the many benefits of Internet banking. Access to
one's accounts at anytime and from any location via the
World Wide Web is a convenience unknown a short time
ago.

The six primary drivers of Internet banking are:


· Improve customer access
· Facilitate the offering of more services
· Increase customer loyalty
· Attract new customers

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· Provide services offered by competitors
· Reduce customer attrition

INDIAN BANKS ON WEB

The banking industry in India is facing unprecedented


competition from non-traditional banking institutions, which
now offer banking and financial services over the Internet.
The deregulation of the banking industry coupled with the
emergence of new technologies, are enabling new
competitors to enter the financial services market quickly
and efficiently.

Throughout the country, the Internet Banking is in the


nascent stage of development (only 50 banks are offering
varied kind of Internet banking services).

1. In general, these Internet sites offer only the most basic


services. 55% are so called 'entry level' sites, offering little
more than company information and basic marketing
materials. Only 8% offer 'advanced transactions' such as
online funds transfer, transactions & cash management
services.

2. Foreign & Private banks are much advanced in terms of


the number of sites & their level of development.
Some existing brick and mortar banks will go out of
business. But that's because they fail to respond to the
challenge of the Internet.
The Internet and it's underlying technologies will change and
transform not just banking, but all aspects of finance and
commerce.

MAIN CONCERNS IN INTERNET BANKING

In a survey conducted by the Online Banking Association,


member institutions rated security as the most important

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issue of online banking. There is a dual requirement to
protect customers' privacy and protect against fraud.
A multi-layered security architecture comprising firewalls,
filtering routers, encryption and digital certification ensures
that account information is protected from unauthorised
access:
Firewalls and filtering routers ensure that only the legitimate
Internet users are allowed to access the system.

2· Encryption techniques used by the bank (including the


sophisticated public key encryption) would ensure that
privacy of data flowing between the browser and the Infinity
system is protected.

3· Digital certification procedures provide the assurance that


the data you receive is from the Infinity system.

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Strategic Alliances

A strategic alliance is a specific form of collaboration


between two or more companies. Strategic alliances with
stronger partners can provide means of overcoming the
problems of small size and lack of resources faced by some
companies.

The term "strategic alliance" can mean many things. In its


broadest sense, it can apply to virtually any form of
collaboration between two or more firms.

A strategic alliance might be entered into for a one-off


activity, or it might focus on just one part of a business, or
its objective might be new products jointly developed for a
particular market.

Generally, each company involved in the strategic alliance


will benefit by working together. The arrangement they
enter into may not be as formal as a joint venture
agreement. Alliances are usually consummated with a
written contract, often with agreed termination points, and
do not result in the creation of an independent business
organisation.

Characteristics of a Strategic Alliance

Usually a non-equity, loosely structured relationship

Each partner retains its business independence

One Company will take a lead role in any contract or


marketing and the others will be "partners" in the work.

34
The alliance can be struck between companies which would
normally be considered competitors.

The relative size of the partners is not a significant factor

Each partner must contribute distinctive "core strengths" eg


technology, manufacturing capacity, access to distribution.

Four key benefits can be expected from a strategic


alliance:

Increased leverage - Strategic alliances allows the


company to gain greater results from it’s core strengths.

Risk sharing - A strategic alliance with an international


company will helps to offset market exposure and allows the
company to jointly exploit new opportunities.

Opportunities for growth - Strategic alliances can create


the means by which small companies can grow.

Greater responsiveness - By allowing the company to


focus on developing it’s core strengths, strategic alliances
provide the ability to respond more quickly to change and
opportunity.

Disadvantages of a Strategic Alliance

High commitment – time, money, people

Difficulty of identifying a compatible partner

Potential for conflict

35
Strategic priorities change over time

Political risk in the country where the strategic alliance is


based

If the relationship breaks down, the cost/ownership of


market information, market intelligence and jointly
developed products can be an issue.

Entering into a strategic alliance requires commitment above


all else – in hours as much as in monetary terms. It also
takes time to build a strong alliance. Identifying and
reaching agreement with the right company can be very
time consuming, and developing a strong relationship can
take years.

STRATEGIC ALLIANCES ENTERED BY STANDARD


CHARTERED BANK

NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking


Technology (IDRBT), a group established by the Reserve
Bank of India (RBI) in 1996, has planned to set up a
national switch to hook up all of the country's 10,000-odd
ATMs.

The idea of establishing ATM interconnectivity through a


national switch has been approved by the information chiefs
of various Banks.

36
The expected cost of transactions routed through the
switch is to be under 10 rupees (21 cents U.S.) each, due to
the high volumes of transactions -- almost 100,000 per day.

Cashnet

It is an Alliance between Citibank, Industrial Development


Bank of India, Standard Chartered Bank and UTI Bank. This
is the country's first independent shared ATM network.
IDBI Bank received permission from the Reserve Bank (RBI)
to serve as the network's settlement bank.
Cashnet will give access to more than 1,300 ATMs for more
than 6 million debit and credit cardholders of the member
banks. The Alliance would constitute about a third of the
total card base and 15 percent of the ATM base in the
country.

Standard Chartered Bank and Bharat Petroleum


corporation of India

Bharat Petroleum Corporation and Standard Chartered Bank


have entered into an alliance to launch a globally valid co-
branded debit card, Smartfill, in association with Visa
International.
Smartfill functions as a debit-cum-ATM card, providing
customers online access to their accounts while they shop or
withdraw cash.
Smartfill allows customers to earn one reward point for
every Rs125 spent on the debit card. It has a unique feature
that all reward points earned, whether from buying fuel or
from purchase of groceries, or from restaurant bills,
shopping, and holiday and travel in India or overseas, can
be accumulated and redeemed for free fuel at BPCL retail
outlets.
Further, customers will get a transaction fee waiver
(normally 2.5 per cent) on purchase of fuel at over 225

37
designated Bharat Petroleum outlets in 10 cities across
India. There are also discounts up to 5 per cent for
purchases at In-and-Out department stores located at
Bharat Petroleum's petrol stations.

Standard chartered Bank and Allianz Bajaj Life


Insurance Company

The Standard Chartered Group has entered into an alliance


with Allianz Bajaj Life Insurance Company to market and
distribute the latter's insurance products.
The partnership will allow branches of the Bank across the
country to market and cross sell life insurance products

Standard Chartered bank and REDIFF.com

REDIFF.com India and Standard Chartered Bank have


entered into an alliance to provide online and offline banking
and related services to the Indian consumer.

The alliance will enable information on the entire range of


the banks consumer banking products to be made available
to the 6.4 million online customers of Rediff.com.

The services offered include detailed information on various


deposits, loans and mortgages, credit cards, mutual funds
and insurance products of the bank. Users will be able to
directly interact with the bank and request for products
online.

Standard Chartered Hutchison Max Telecom Pvt. Ltd

Available in two variant, Classic and Gold, the ‘Orange


Standard Chartered Visa Credit Card’ offers a host of
benefits to the cardholder.

38
The Card holder will be entitled to special benefits such as of
STD/ISD deposit waiver, additional bonus and roaming
points to use of Orange products and services. With this card
the Orange subscriber also enjoy several offers such as
shopping, travel discounts and all other benefits of standard
chartered Card such as personal accident insurance, Global
ATM Access and cash advancement facility.

Co-branded credit cards bring value to the customers as


these not only provide the features of a regular credit card
but provide a unique bundle benefits offered by the two
organisations.

Standard Chartered and Department of Post

Under the alliance, India Post will market credit cards and
other consumer banking products of Standard Chartered
Bank through Data Post. While the partnership will enable
Standard Chartered to leverage the extensive national
network of post offices to distribute and market its products,
the post offices will also be the payment collection points for
the bank's credit card customers. The bank will also utilise
Speed Post extensively to send its credit cards to customers.

39
OBJECTIVES

Various Objectives for conducting the research and


analysis are listed as under :

1. Access the Market Potential of Standard Chartered Bank


Saving Account with the help of a survey conducted on a
total of 155 Respondents (50-Standard Chartered Bank
customers , 105-Other Banks customers)

2. Study how new distribution channels such as Internet


Banking , ATM facility , Phone Banking have changed the
face of the Banking industry.

3. Study the impact of a customer centric approach being


followed by the Bank , and what is it’s benefit.

4. Compare the services offered by Standard Chartered Bank


and the customers satisfaction level of the same with that
of other Banks in the Private and Government sector , and
to access where the Bank has to improve.

5. Consideration of various promotional and marketing and


advertising strategies of Standard Chartered to the
satisfaction among its ultimate users and consumers.

40
6. Finally to draw the various conclusion and
recommendations on the basis of the study conducted on
specifically taking to consideration the services,
advertising and marketing strategies of the Bank.

41
THE RESULTS OF A SURVEY WHICH WAS
CONDUCTED ON 50 RESPONDENTS
HAVING SAVING ACCOUNTS IN
STANDARD CHARTERED BANK IS AS
FOLLOWED

DURATION WITH BANK

DURATION WITH BANK

Less than 6
Over 2 years months
6 months to 1
17% 3%
year
30%

1 to 2 years
50%

The study of 50 Standard Chartered Bank respondents


consisted of a majority of customers who had been with the
Bank for a reasonable amount of time. This is good as these
customers have had the opportunity to properly access the
service level of the Bank, and can compare their experiences
of Standard Chartered Bank with banks they have previously
and are currently dealing with.

Out of the total respondents only 3% have been with the


Bank for less than 6 months, the rest 97% have had
the opportunity to know about the strengths and
weaknesses of the Bank.

42
Another inference that we can draw from this study is that
couple of years the Bank has been actively acquiring new
customers as from the survey we can see that about 80% of
the customers have opened their accounts during the past
two years. The reason for this could be that during the past
two years the Bank has been able to convince many
prospective customers about the superior service it is able to
offer in comparison to competing Banks.
Another reason could be that the customer base of the Bank
has increased due to sheer word of mouth of the Banks
millions of satisfied customers.

REASON FOR CHOOSING BANK

REASON FOR CHOOSING BANK

Recommended by
Family/Friend
Brand Name/Reputation
34% of bank
44%
Advertisement

Branch near
16% 0%6% Office/Residence
Other Reasons

The Bank is always interested to know what was that one


reason that prompted the customer to open an account with
the Bank even though he is flooded with very attractive
options from the competing Banks.
If the Bank could get to know of that very compelling factor
that convinced the customer to open the account then the
Bank could use this in it’s favor to attract more customers.

43
From the study conducted the factor which has come out
strongest in this regards is the “Other Reasons” getting
44% of the responses , going deeper into this response by
asking the respondent what is the factor they include in this
Other Reasons is that most people are not the deciding
factor when they open a saving account, this is done so by
their employers. The customer’s salary accounts are created
by the companies in which they work.
A very important inference that can be drawn from this is
that Standard Chartered Bank should be active in
maintaining close links with the corporate sector, this would
help the Bank get very profitable Corporate Accounts in
addition to the Saving Accounts..

Closely following the “Other Reasons” option was that 34%


of the respondents opened their account with the Bank
because Standard Chartered Bank was Recommend by
Family/Friends. This is a very important finding as the
existing customers of the Bank have been recommending
the Bank to their acquaintances after their good experiences
with the Bank.
But this could also turn as an disadvantage to the Bank as if
there are some dissatisfied customer he might dissuade a
prospective account holder, to deal with this problem the
bank should keep up with it’s good service and continue to
make it’s Account holders satisfied with it’s consistently
good services and products it offers.
Apart from this the Bank should target to increase the
number of Accounts that are held by each family, the
customer must be made aware of the benefits that could be
acquired when he opens a account for his child. This would
help increase the number of Account holders of the Bank.

The next important factor while choosing a Bank is the


Distance the Bank is located from the
Office/Residence of the Customer, 16% of the
respondents felt this was the most important factor.

44
This is an area of concern for the Bank as Standard
Chartered Bank has only 13 Branches which are located in
Delhi apart from this the All India figure for number of
Branches of Standard Chartered Bank is 57. This figure is
not very impressive when compared to Standard Chartered
Banks rivals ICICI Bank and HDFC Bank which have a
massive Delhi and All India branch presence.
The Bank must increase their Branch Presence in Especially
the Metro cities which the Bank is targeting. Apart from this
an effort should be made to increase Branch presence in the
potential profitable parts of the country.

The forth most important factor which influences the


customer to open an Account is the Reputation/Brand
Name of Standard Chartered Bank., 6% of the respondents
choose this option. Standard Chartered Bank is an
Internationally Recognized Name when it comes to
Banking, it has a very strong Reputation and has
tremendous Goodwill in all sections of the society.
The Bank should be careful that their Goodwill is maintained
for the years to come, this would bring in much more
business for the Bank..

The fifth factor which did not receive any responses was
“Advertisement” The respondents did not feel that
Advertisements prompted them to open accounts with the
Bank. This does not undermine the importance of
Advertisements when it comes to informing the customers of
the new products and offerings the Bank is providing.
In the later part of the study we do find out that the Bank
should be active when it comes to communicating with the
customers by way of Advertisement.

45
OTHER ACCOUNTS HELD

OTHER ACCOUNTS HELD

30
26
25

20

15 12
10 7
5
5

0
ICICI Bank HDFC Bank SBI Others

Holding Multiple Saving Accounts is a very common practice


today, it would be highly rare to find a person who holds
only a single Account with a particular Bank. It is common
for people to hold two or three accounts in their name.
Multiple Accounts held by customers give them the
opportunity to compare the services offered by different
Banks.

In our study we found the Bank whose Account was held by


most number of customers in addition to Standard
Chartered Bank was ICICI Bank with 12 respondents this
was followed by HDFC Bank.
Banks like ICICI Bank and HDFC Bank pose a serious threat
to Standard Chartered Bank when it comes to Saving
Accounts simply for the reason that these Banks have been
successful in creating a vast network of Branches and ATM
all over the country.

46
In the Other Banks category it included Government and
Private/Foreign Banks. In the Government Banks there were
Bank of Baroda, Punjab National Bank, Central Bank of
India. The Banks in the private sector included CITIBANK,
ABN Amro,HSBC,etc.

The one Bank in the Government sector which got a


reasonable number of responses was State Bank of India
(SBI), SBI is the largest commercial Bank in India, it has the
largest branch network amongst all Banks be it in the Public
or Private sector. But due to little attention given on
customer service as is the case with most public sector
undertakings, it’s customers are shifting to Banks in Private
Sector like Standard Chartered Bank.

MOST FREQUENT POINT OF INTERACTION


WITH THE BANK

MOST FREQUENT POINT OF INTERACTION

30 26
25
20 16
15
10 6
5 2
0 0
0
Visit Branch ATM Phone Drop Box Internet Door Step
Banking Banking

The answer to the Question that what would be the point of


interaction with a Bank would have a few years ago have
been the Branch. But today this is not the obvious answer.
The Account holders have the option to use the ATM
machines to withdraw or deposit money, or do various other

47
transactions, he could also use the facility of Phone Banking
or Internet Banking from the comfort of his home or office.
Apart from this some Banks Including Standard Chartered
Bank are provided with facility of Door Step Banking where
the customer can even deposit or withdraw cash without
ever having to leave his home.

The Banks are very interested to know the most popular


Point of Interaction with the Bank as if the Bank is lacking
in one of these steps can be taken to make the situation
better.

From the study we can see more than half (more than
50%) of the total respondents feel that they interact most
with the Bank with the help of ATM. Banks prefer if it’s
Account holders use the ATM machines to do transaction
rather than coming to the Branch as the cost per transaction
is lower when using the ATM machine than using the branch.
Hence the importance of ATM cannot be overstated.

Account holders of Standard Chartered Bank Saving Account


having Visa Electron Debit Card can access other Banks ATM
machines four times per month for free, after that the
Account holder has to pay Rs. 50 per transaction. But
holders of ATM cards cannot access machines belonging to
other Banks.

The number of ATM machines installed by Standard


Chartered Bank is 35 in Delhi and the All India tally is 246
machines. When this figure is compared to ICICI Bank which
has thrice the number of machines in Delhi or HDFC Bank
which has nearly twice the number of machines in Delhi, this
is worrying for Standard Chartered Bank.
Apart from the above two Banks State Bank of India, UTI
Bank have a very intensive network of ATM machines all
over the country.

48
The Second most popular point of interaction that arises
from the study is the Branch with 32% of the respondents
favoring this option. Standard Chartered Bank is unique in
an aspect that it follows the “Any Branch Banking”
wherein the Account holder can use any of the Banks 246
Branches all over the country.
An aspect that customers really appreciate is the 24 hour
Branches and the 365 Days Branches of Standard
Chartered Bank. The 24 Hour Branch of Standard Chartered
Bank is located at Inner Circle Connaught Place New Delhi
apart from these Branches in Mumbai and other cities in
India.
Standard Chartered Bank is the only Bank which has the
facility of a 24 Hour Branch. As for a 365 Day Branch the
only Bank having this facility apart from Standard Chartered
Bank is ABN Amro Bank.
Standard Chartered Bank customers have the advantage of
being able to do Cash Transactions from Non-Branch,
this facility is provided by a select few Banks and popular
Banks like ICICI Bank and HDFC Bank do not provide this
service.

Standard Chartered Bank should open more Branches in


Delhi as Branch Banking is the second most Frequent Point
of Interaction. There is a need to increase it’s Branch
presence in other Cities around India if Standard Chartered
Bank wants to be known as a household name in the
country.

The third most Frequent Point of Interaction is Phone


Banking with 11.5% of the respondents favoring this
medium. Phone Banking is one of the new age Banking
techniques. It is in it’s infancy in India and people have not
taken to it as is the case in other Developed Countries in the
World.

49
In the study it was seen that customers have mixed feeling
when it comes to Phone Banking as sometimes they do not
find it as an effective alternate to traditional forms of
Banking.

The forth most Frequent Point of Interaction with the Bank is


Internet Banking with 4% of the respondents favoring this
medium. Internet Banking is the most modern means of
Banking available to the customers but due to the general
perception that this medium is not safe it is not used by
many people.
In our study only 60% of the total respondents have atleast
once used Internet Banking.

The two option which were not favored by any respondents


as the most Frequent Point of Interaction are Drop Box
Facility and Door Step Banking..

Accounts holders admit having used the Drop Box facility


and find it quite a convenience but do not consider it as the
most frequent point of interaction.

When it comes to Door Step Banking very few Account


Holders admit having used the service. This is due to two
reasons ,first, people don’t consider it as the most safe
means of Banking and second, transactions done through
this medium cost the customers.

50
TIMES ATM USED PER WEEK

TIMES ATM USED PER WEEK

More than 4
times
10%

Less than 2
2 to 4 times times
40% 50%

The study has confirmed the fact that ATM is a very popular
means of Banking today , in fact it is the Most Frequent
Point of Interaction with the Bank. Banks prefer the use of
ATM as the cost per transaction is quite low as compared to
Branch Banking.

Banks are always interested to know the frequency with


which the ATM machines are used per month. From our
study we infer that most Account holders (50% of the
respondents) use the ATM Less than 2 times per week, this
is followed by 40% of the respondents who use the facility
between 2 to 4 times per week. Only 10% of the total
respondents use the ATM facility more than 4 times per
week.

This finding has an important implication, even though


Standard Chartered Bank does not have a very large
network of ATM machines and Account holders can access

51
ATM machines of other Banks (4 free transactions only).Most
Account holders would not face much problem as even if
they are not able to find a Standard Chartered Bank ATM
machine they can use other Bank ATM without fearing that
they would have to pay Rs. 50 per transaction fee.

OVERALL SATISFACTION LEVEL

OVERALL SATISFACTION LEVEL

30 26
25
20
14
15
10
10
5
0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

Overall Satisfaction level of the customer is a very important


parameter which is valued by all especially service providers
like Banks. It includes everything and encompasses total
experience of the Account holder with the Bank. It shows
the general perception of the account holder. If people who
have had experience in dealing with the Bank have a high
Overall Satisfaction Level they would definitely Recommend
the Bank to their Acquaintances.

Any service provider would want their customers to have a


high Overall Satisfaction level. Standard Chartered Bank has
scored very well in this regard.

52
The most important thing is that no respondent has
complained that they are overall dissatisfied with the
bank. This is a very important finding because this shows
the effort Standard Chartered Bank puts in providing their
customers a superior service has not gone waste.

More than half of the total respondents (52%) say that they
are somewhat satisfied with the overall service of the Bank.
About 30% of the total respondents say that they are
Very Satisfied with their Overall Experience with the
Bank.
Hence about 82% of the Respondents are Satisfied
with their Overall Experience with the Bank.

There is another category of Respondents (20% of total)


who say that they are neither satisfied nor dissatisfied
with their Overall Experience with the Bank. This is a
worrying aspect and the Bank should pay more attention to
these segment of Account holders.

The study is showing a very good Overall Satisfaction


Level by the Account holders.

SATISFACTION LEVEL WITH NUMBER OF


BRANCHES

53
SATISFACTION LEVEL WITH NUMBER OF
BRANCHES

25
20
20 16
15
10
10
4
5
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

Standard Chartered Bank has 57 Branches all over India,


and in Delhi alone it has 13 Branches.
From the study we can see that about 40% of the total
respondent have said that they are somewhat satisfied
with the number of Branches of Standard Chartered Bank,
and only 8% of the total respondents have said they are
very satisfied with number of Branches.

There is a large portion of respondent (32%) who are


neither satisfied nor dissatisfied with number of
Standard Chartered Bank Branches whereas 10% of the
respondents are somewhat dissatisfied.

A comparison of the different Banks with number of


Branches each has is given below-

BANK NO. OF NO. OF


BRANCHES BRANCHES
(INDIA) (DELHI)

54
Standard 57 13
Chartered Bank
ICICI Bank 400 33
HDFC Bank 201 19
IDBI 65 9
CITIBANK 126 9
HSBC 28 3
AMN Amro 9 3
UTI 70 -
GTB 91 5

From the above table we can see that ICICI Bank is the clear
winner when it comes to number of Branches in Delhi and on
an All India basis, following it is HDFC Bank. CITIBANK is
next when it comes to All India figure but it does not have
many Branches in Delhi.
If we look at the figures from strictly Delhi point of view
then we can infer Standard Chartered Bank has put in a lot
of effort on Delhi when number of Branches is concerned..
Nearly 23% of the total Branches of Standard
Chartered Bank are located in Delhi.
The corresponding figure for ICICI Bank is 8.25% , for HDFC
Bank is 9.45% , CITIBANK is 7.14%.
The reason for this may be the fact that Standard Chartered
Bank is a Bank which wants to cater to niche customers
who are willing to maintain a comparatively higher balance
in their accounts as compared to account holders of other
banks. Therefore Standard Chartered Bank is concentrating
on Metro cities like Delhi.

The Breakup of number of Standard Chartered Bank


Branches in various Metro cities of India are given below-

55
NAME OF CITY NO. OF BRANCHES

Delhi 13
Mumbai 13
Kolkota 14
Chennai 5
Bangalore 2

From the above we can see that Standard Chartered Bank is


concentrating on Metro cities with 47 of it’s total 57
Branches located in these five cities, representing 82.4% of
total Branches in Metro Cities.

Standard Chartered Bank has a single Branch each in other


cities like Kanpur, Amritsar, Chandigarh, Lucknow, Jaipur,
Jalandhar, Ludhiana, Cochin, Secundrabad, Hyderabad,
Coimbatore, Pune, Vadodara, Surat, Bhopal, Ahmedabad.

SATISFACTION LEVEL WITH NUMBER OF


ATM MACHINES

56
SATISFACTION LEVEL WITH NUMBER OF ATM

30 26
25
20
15
10
10 8
6
5
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

From the study we have already inferred that ATM is the


most Frequent Point of Interaction with the Bank so it is
very importances that we study the satisfaction level of the
customer with the ATM services.

Satisfaction of account holders with ATM service did not just


include the number of ATM machines located , closeness of
machines to Home/Office of account Holder, But it also
included whether the Account holders are satisfied with the
performance of the machines, whether or not the Account
holders had encountered any problems with the machines.

Before going into the analysis all the respondents who were
questioned were of the view that ATM machines
belonging to Standard Chartered Bank were very
Technologically Advanced are were very satisfied with the
performance and had not encountered many problems.

The account holders of Standard Chartered Bank were not


very satisfied with the number of machines that were
installed and this can be seen in the results of the survey.

57
More than half of the total respondents (52%) were
Somewhat Dissatisfied with the number of ATM machines
Installed by Standard Chartered Bank.
While 12% of the respondents were Very Dissatisfied
with the number of machines in the city.

Only 16% of the total number of respondents were


Somewhat Satisfied and no one was Very Satisfied
with number of ATM machines.

From the above results we can infer that there is an urgent


need on part of the Bank to install more ATM machines. It is
true that Standard Chartered Bank Access plus Account
holders are entitled to four free transactions in non Standard
Chartered Bank ATM machines , but there is no substitute
for Bank’s own machines in the customers eyes.

The Table below shows the number of ATM machines


belonging to various Banks in Delhi and on an All India
basis-

NAME OF BANK NUMBER OF ATM NUMBER OF ATM


MACHINES MACHINES
(ALL INDIA (DELHI)
BASIS)

58
Standard 246 35
Chartered Bank
ICICI Bank 560 112
HDFC Bank 625 66
IDBI 350 43
CITIBANK 160 22
HSBC 103 21
AMN Amro 40 13
UTI 507 -
GTB 250 20

From the above table we can clearly see that HDFC Bank is
the Bank which has highest number of ATM machines on All
India basis, this is followed by ICICI Bank , then UTI.

When we look at the concentration of machines in the Delhi


Region we see that out of ICICI Bank’s 560 Machines 112
are located in Delhi representing 20%.
The corresponding figure for Standard Chartered Bank is
14.2% . HDFC Bank is 11.8% , IDBI Bank is 12.3% ,
CITIBANK is 13.75%.

From the above we can infer that with the exception of ICICI
Bank , Standard Chartered Bank has higher proportion
of it’s ATM machines in Delhi Region when compared
with other Banks.

SATISFACTION LEVEL WITH BANKING


HOURS (10 am to 7 pm)

59
SATISFACTION LEVEL WITH BANKING HOURS
(10 am to 7 pm)

25 22
20
14
15
10
10
4
5
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

From the study of Standard Chartered Bank Account holders


we have been able to infer that Branch Banking is the
second most Frequent Point of Interaction with the Bank.
The Average Banking Hours is a very important aspect
associated with any Bank. In todays fast paced life where
people who hold Accounts with the Bank are busy working it
is important that they can find a way to visit the Bank
without having to miss out on work.

The Average Banking Hours of Standard Chartered Bank is


from 10am to 7pm , the Bank is open to the public for nine
hours. These timings are convenient for Especially those
Account holders who are working, these people can visit the
Bank after their Office finishes.

Apart from the Average Banking Hours Standard Chartered


Bank offers to it’s Account holders 24 Hour Branch , 365
Days Branch and the facility of Sunday Banking.

Standard Chartered Bank is the only Bank which offers a 24


Hour Branch in India, this is a big boon for people who

60
cannot take the time out to visit the Bank during the normal
working hours and is also very handy during emergencies.

The 365 Day Branch of Standard Chartered Bank is also


unique and the only other Bank offering this service is ABN
Amro , this Branch is open regardless of the fact that it is a
Sunday or a public holiday.

Sunday Banking is very useful for people who are busy


throughout the week and the only day when they find the
time is Sunday. Other Banks offering this service apart from
Standard Chartered Bank are ABN Amro and CITIBANK.

From the analysis of the data that has been collected from
Standard Chartered Bank Account holders we can see that
majority of the respondents are satisfied with the Average
Banking Hours.

The respondents who are Somewhat Satisfied with the


Banking Hours consists of 44% of the total , while 28% of
the total respondents studied say that they are Very
Satisfied. In all 72% of the total respondents are
Satisfied with the Banking Hours of Standard
Chartered Bank.

The respondents who are Neither Satisfied nor


Dissatisfied consist of 20% of total number studied ,
while 8% of the respondents are Somewhat Dissatisfied.

The table below shows a comparison of the Average Banking


Hours of various competing Banks-

NAME OF BANK AVERAGE BANKING

61
HOURS

Standard Chartered 10am to 7pm


Bank
ICICI Bank 8am to 8pm
HDFC Bank 9:30am to 3:30pm
IDBI 10am to 4pm
CITIBANK 10am to 2pm
HSBC 9am to 4pm
AMN Amro 10am to 7pm
UTI 10am to 4pm
GTB 9am to 5pm

From the above table we can infer that ICICI Bank has the
highest Average Working Hours (12 Hours per Day) out of
all the Banks. This timings are very convenient for Account
holders who are working as this gives them an opportunity
to visit the Branch before their office starts and after their
office ends.

Standard Chartered Bank and ABN Amro both have an


Average Working Day of nine hours which is considered
quite adequate for any service organization.
The Account holders of Standard Chartered Bank
consider the Average Working Hours Quite Adequate.

62
SATISFACTION LEVEL WITH PHONE
BANKING

SATISFACTION LEVEL WITH PHONE BANKING

25
20
20
14
15
10
10
6
5
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

The concept of Banking by Phone is Quite new in India , but


to it’s credit it has become Quite popular in a short span of
time. This service is available to customers of all
Private/Foreign Banks and some Indian Government Banks
also provide their Account holder’s with this service.
With the help of phone Banking Account holders are able to
do a number of transactions without having to leave one’s
home.

But despite these benefits that accrues from Phone Banking


there is the aspect of impersonality that is associated with
this medium. During the study we have seen that Account
holders often complain that the Phone Banking Executives
are not able to solve their problems effectively. There have
been instances when Phone Banking Executives have
behaved Rudely with the Account holders.

63
The Account holders feel that even though Phone Banking is
useful in certain situations but is not a very effective way to
do Banking as there is no face to face interaction.

More than half of the respondents (52% of the total


respondents) interviewed felt that they were Satisfied with
the Phone Banking service offered by Standard Chartered
Bank , while 28% of the total respondents felt that they
were Neither Satisfied nor Dissatisfied with Phone
Banking.

Out of the Account holders Satisfied with Phone Banking


40% were Somewhat Satisfied and 12% were Very
Satisfied.

SATISFACTION LEVEL WITH INTERNET


BANKING

SATISFACTION LEVEL WITH INTERNET


BANKING

14 13
12
10
8 7
6
4
2 0 0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

Internet Banking is the most technological advanced means


to do Banking. Through this medium the Account holder can
do various types of transactions without having to leave his
Office/Residence.

64
The Account holder has the convienience to do transaction
no matter where he is in the world at any time of the day.
Internet is the most cost effective medium of Banking from
the point of view of the Banks , it costs a fraction to the
Bank as compared to other mediums like Branch Banking or
ATM.

But this medium is not as favored a medium as it in the west


, the reasons for this is that firstly , this is a relatively new
concept in India , secondly , general perception that this is
not safe , thirdly , computers and internet are not widely
spread all over the country.

Not all customers of a Bank use Internet Banking facility


even if it is provided by the Bank. In the study 40% of the
respondents have ever had experience of using Internet
Banking facility. The rest have never availed of this service.

The results showed that most standard Chartered Bank


customers are not very happy with this facility. A vast
proportion (65%) of the respondents who have had
experience of using Internet Banking facility were
Somewhat Dissatisfied by the facility offered by the Bank.
The balance 35% of the respondents felt they were
Somewhat Satisfied.

The worrying aspect is that no respondent was Very


Satisfied with the service.

On further questioning of the dissatisfied respondents it was


revealed that some people had faced difficulties in receiving
the password from the Bank, hence spoilt their experience.
Others felt that Internet was not an effective substitute for
visiting the branch when some important transaction was
needed to be done.

65
SATISFACTION LEVEL WITH BANK STAFF

SATISFACTION LEVEL WITH BANK STAFF


(Courtesy,Qualified)

25 23

20
15
15
10
10
5 2
0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

Banks are institutions which are backed up by a large


amount of capital , today’s Banks are spending a huge
amount of money on technology , improvement in
infrastructure , etc. But even today the most lasting impact
about any Bank comes from the customers experience with
the Bank Staff.

Any paining experience can have a lasting impact on the


mind of the customer , this can force him to change Banks
or even discourage others from joining the Bank. Hence
Banks should train their employees to maintain good
relations and be cooperative with the customers.

From the results of the findings we can see that Standard


Chartered Bank has been sucessful in maintaing a high level
of customer satisfaction with the employees. Only 4% of the
total respondents included in the study were Dissatisfied.
The number of respondents who were Very Satisfied
represented 30% of the total respondents while those who
were Somewhat Satisfied were 46% of the total.

66
The respondents who were Neither Satisfied nor
Dissatisfied are 20% of the total.

SATISFACTION LEVEL WITH


CORRESPONDENCE FROM BANK
REACHING IN TIME

SATISFACTION LEVEL WITH CORRESPONDENCE


FROM BANK REACHING IN TIME

25 22
20 17
15 11
10
5
0 0
0
Very Satisfied Somewhat Neither Somewhat Very
Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

The Bank has to often communicate with the Account


holders regarding many aspects like informing them of the
balance in accounts , informing about new offers and
products , delivering important passwords and personal
identification numbers , etc.

The information that is sent to the Account holders through


this medium is very important and if the Bank is not able to
maintain a satisfactorily standard , it would adversely affect
the image of the Bank in the minds of the customers.

The results from the study shows a worrying aspects , More


than two-third of the total respondents (78%) were in
someway or the other Dissatisfied with the Bank in regards

67
to correspondence from Bank reaching in time. The
percentage of respondents who were Very Dissatisfied
were 34% of the total, and 44% of the respondents were
Somewhat Dissatisfied.

The respondents who were Somewhat Satisfied were


22% of the total number of respondents.
No one was Very Satisfied with this service.

IS MINIMUM BALANCE (RS. 10000) TOO


HIGH ?

The Banks which operate in the Private Sector have not


been able to gain such a foothold in the Market of Saving
Accounts when compared to the Nationalized Banks because
of a variety of reasons-

1. The Nationalized Banks have the Advantage of entering


the Market Early – Hence they have more customers.

2. The Nationalized Banks have a Far Greater Branch Reach


IS MINIMUM BALANCE (RS. 10000) TOO HIGH ?

Yes
18%

No
82%

as compared to Private Sector Banks – who are mostly


located in large cities.

68
3. The General perception in the mind of the average person
that their money is safer in a Nationalized Bank as
compared to a Private Sector Bank.

4. The Private Sector Bank insist on a Higher Minimum


Balance to be maintained by it’s Account holders as
compared to those required by Nationalized Bank Account
holders.

Here we are going to Address this Very Important Question


that whether the Minimum Average Quarterly Balance
required to be maintained by Standard Chartered Bank
Customers is limiting the Bank in attracting a larger segment
of people to open accounts with the Bank.

The results of the study conducted on Standard Chartered


Bank Account holders show that a vast majority of Account
holders (82% of the total respondents) do not find the
Minimum Average Quarterly Balance of RS.10000
high.
The segment of Account holders finding the Average
Quarterly Balance of RS. 10000 high constitutes of
18% of the total respondents.

Standard Chartered Bank is doing business on the premises


of having Good Quality of depositors and are not going after
Quantity. They believe it is better to do Business with one
Good customer rather than serving ten small customers.

The table below shows a comparison of the Minimum


Balances that are Required to be maintained by Customers
of different competing Banks-

69
NAME OF BANK MINIMUM PENALTY FOR
BALANCE NON
MAINTENAN
CE OF
MINIMUM
BALANCE
Standard Chartered Bank INR. 10000 INR. 750 per
quarter
ICICI Bank INR. 5000 INR. 300 per
quarter
HDFC Bank INR. 5000 INR. 150-500 per
month
CITIBANK INR. 10000 INR. 250 per month
HSBC INR. 10000 INR. 300 per
quarter
ABN Amro INR. 10000 INR. 200-1800 per
month
IDBI Bank INR. 5000 INR. 100 per
quarter
UTI INR. 5000 INR. 200 per
quarter
GTB INR. 5000 INR.150 per quarter

As that can be seen from the table above Standard


Chartered Bank is one of the Banks with the Highest
Average Minimum Balance required to be maintained by the
Account holders, if this AQB is not maintained then RS. 750
per Quarter is deducted from the Account.

We can see that all the Foreign banks operating in India


require their customers to hold this Minimum Balance.
Indian Banks like ICICI Bank , HDFC Bank , IDBI Bank
require their customers to hold a comparatively lower
Minimum Balance.

70
SHOULD BANK BE MORE AGGRESSIVE IN
ADVERTISING IT’S PRODUCTS ?

SHOULD BANK BE MORE AGRESSIVE IN


ADVERTISING IT'S PRODUCTS ?

No
32%

Yes
68%

The importance of Advertisement today can never be over-


estimated , it is common for service providers to advertise
about themselves in different mediums like print , visual ,
vocal , etc. Banks are no different , they offer a variety of
products to it’s customers and to keep people informed
about them we see a variety of Bank Advertisement.

A few years ago when the Market was dominated by


Nationalized Banks only there was very little scope for
Advertisements as the Product that was being offered to the
public was generally Homogeneous. There was Perfect
Competition in the Market.

But from the past few years with the entrance of Foreign
Multinational Banks like Standard Chartered Bank and
growth of Large Indian Private Sector Banks like ICICI
Bank , HDFC Bank , etc the customers have got a lot of

71
choice. Each of these Banks offer it’s customers
Differentiated product . In a sense today the Market of
Saving Account Exhibits some features of Monopolistic
Competition .

In Addition to this Private Banks and Foreign Multinational


banks keep aside huge Budgets for it’s Advertisement
Expenditure. Standard Chartered Bank has got it’s products
endorsed by celebrities and regularly sponsors many high
profile events . Standard Chartered Bank was the principal
sponsor of the recently concluded Standard Chartered Bank
Mumbai Marathon.

In the Earlier part of the Study an attempt was made to


understand the importance Advertisement Plays in
convincing prospective customers to open Accounts with the
Bank , the result said that Advertisement was not the
compelling force which prompted the customer to open an
Account With the Bank.

But now we trying to access if people think if Bank should be


more proactive when it comes to Advertising it’s products.
The results show that people want Banks to spend more
money in Advertisement , this would help the Bank in
informing the public about new products being offered by
the Bank and also help the people to compare the Product
offered by Standard Chartered Bank with those offered by
other Banks.

More than two-thirds of the entire respondents (68%)


studied felt that the Bank should be more Aggressive in
Advertising the products it offers. One-Third (32%) of the
respondents felt there was no need for the Bank to
Advertise their products.

72
WOULD CUSTOMER RECOMMEND THE
BANK TO ACQUAINTANCES ?

WOULD THE CUSTOMER RECOMMEND BANK TO


ACQUAINTANCES

No
26%

Yes
74%

Standard Chartered Bank like any other Bank is always on


the lookout for people to open Accounts with the Bank , this
would increase the deposit base of the Bank. The existing
Account holders of the Bank can convince a lot of people
they know to open Accounts with the Bank.

Account holders of the Bank can by their Word of Mouth


publicity convince a lot of people to open Accounts with the
Bank. In the earlier part of the study when the Reason for
Opening A Saving Account with Standard Chartered Bank
was studied “Recommended by Family/Friends” came out to
be the second strongest reason. Hence now it is imperative
to find out whether the Existing account holders of the Bank
would Recommend the Bank to their Acquaintances.

73
The results are Quite encouraging for Standard Chartered
Bank , About three- forth of the total respondents (74%)
said they would Recommend the Bank to people they
know , while 26% felt they would not recommend the
Bank as they were not satisfied with the services offered by
Standard Chartered Bank.

The above finding shows that most of the respondents are


satisfied by the services offered by the Bank , but the Bank
should improve their services especially for the segment
representing one-third of the respondents so that they can
also change their view regarding this subject.
Having dissatisfied customers is very dangerous as there is
always a Risk that these customers might shift to one of
Standard Chartered Bank’s competitors , or they might
discourage one of the prospective customer from opening an
Account with the Bank.

74
THE RESULTS OF A GENERAL SURVEY
WHICH WAS CONDUCTED ON 105
RESPONDENTS BELONGING TO 10
DIFFERENT BANKS IS AS FOLLOWS

BANKS STUDIED

BANKS STUDIED

25
20 20
20
15
10 10 10 10 10
10
5 5 5
5
0
k

nk

nk
BI
ro

B
C

B
SB
an

AN

BO
SB

PN
ID
Ba

Am

Ba
IB

IB

H
FC

a
IC

N
IT

hr
AB
IC

C
D

d
H

An

This study involved mainly Banks operating in the Private


Sector , there are some Banks from the Public Sector but
these are at a relatively lower proportion.

The Private Bank include both Indian and Foreign Banks ,


the Indian Banks included ICICI Bank , HDFC Bank While the
Foreign Banks apart from Standard Chartered Bank studied
included CITIBANK , HSBC , ABN Amro.

The Government Banks included most noticeably State Bank


of India (India’s Oldest and largest commercial Bank) , Bank
of Baroda , apart from other Banks.

75
NAME OF BANK NUMBER OF
RESPONDENTS
ICICI Bank 20
HDFC Bank 20
CITIBANK 10
ABN Amro 10
HSBC 10
IDBI 10
State Bank of India 10
Punjab National Bank 5
Andhra Bank 5
Bank of Baroda 5

TOTAL 105

ATM FACILITY PROVIDED BY BANK ?

76
ATM FACILITY PROVIDED BY BANK ?

No
14%

Yes
86%

ATM Banking has today totally Revolutionized Banking in


India , it has completely changed the image one used to
associate with Banking at one time . The Account holders no
longer have to wait in queues so that can Withdraw/Deposit
their own money , today simply by inserting the Card in the
machine the Account holder can do a variety of transactions
any time , any place.

The respondents in the study included Account holders from


both the Private and Government Banks , as far as the
Private Banks are concerned 100% of the respondents were
using the ATM facility provided by the Bank using either the
ATM card or Debit Card.

But from the respondents in the Government sector Banks


not all the Account holders were using the ATM facility. In
some cases the respondents interested in the ATM facility
but could not avail the service because the Government
Banks had delayed the delivery of cards even after the
Account holder had applied for the same. Other Account
holders preferred the traditional method of Banking rather
than this new medium .

77
Overall 86% of the total respondents studied use the ATM
facility provided by the Bank , while 14% of the
respondents did not use ATM facility. This entire 14%
segment represented account holders from the Government
Sector Banks.

ATM FACILITY USED PER WEEK

ATM FACILITY USED PER WEEK

More than 4
times
14%

2 to 4 times Less than 2


29% times
57%

78
As it has already being studied in the earlier part of the
study specifically dealing with the Standard Chartered Bank
Account holders , the per week ATM usage is studied to
access what is the frequency with which ATM machines are
used by Account holders of different Banks.

It has been observed that the ATM usage is directly


proportional to the number of machines operated by the
Bank. Account holders of Banks such as ICICI Bank , HDFC
Bank which operate a very large number of ATM machines
all over the country tend to use the ATM facility much more
than their counterparts of other Banks.

Another Trend that has been observed is that when


Branches of Banks are located far from the Residence/Office
of the customers , the ATM usage in those cases is high.

An interesting fact is come out after the study regarding


CITIBANK , this is one Bank which prides itself to be
technology savvy and it encourages it’s Accounts holders to
use ATM Facility , Phone Banking , Internet Banking , etc to
do transactions. To discourage Branch Banking they are the
only Bank in the country who charge their Account holder
everytime they visit the Branch to do transaction.
The number of ATM machines of CITIBANK are
comparatively few (All India-126 , Delhi-9) ,still people
use more of their ATM Facility.

Overall more than half of the total respondents studied


(57%) use the ATM Facility less than two times per
week , 29% of the respondents use the ATM Facility
between two and four times per week and only 14% of
the respondents use it more than four times per week.
The results we have reached above is identical to ATM usage
of Standard Chartered Bank Account holders who were
studied earlier.

79
MOST FREQUENT POINT OF INTERACTION
WITH BANK

MOST FREQUENT POINT OF INTERACTION WITH


BANK

50 45
40
32
30
20
20
8
10
0
0
Visit Branch ATM Phone Drop Box Internet
Banking Banking

80
Banks in the Private and Government sector provide to their
customers with different types of medium through which
they can interact with the Bank.

Private Sector Banks have been in the forefront of providing


their customers with technologically advanced mediums like
Internet Banking , Mobile Banking , ATM Facility , Phone
Banking ,etc.

Government Banks have rather late realized that if they do


not invest in these modern medium of Banking their deposit
base would shrink. Now these Banks are investing heavily in
installing ATM machines , they have set up call centers for
Phone Banking, etc.
State Bank of India is one such Bank which has one of the
largest network of ATM machines all over the country.

Generally the study has concluded that for Private Sector


Banks ATM has come out as the most frequent point of
interaction with the Bank , But Branch Banking is more
popular when Government Banks are concerned.

Phone Banking and Internet Banking are western concepts


of Banking which have been popularized by Private Banks
operating in India. The usage of these mediums are
restricted to Private Banks. Government Banks are currently
putting these mediums in place for it’s customers but it will
be some time before Internet and Phone Banking will
become popular for Government Bank Account holders.

Overall the medium which has come out as the most popular
point of interaction with Banks is the ATM Facility with
42.85% of the respondents choosing this option.

Next most popular Point of Interaction with the Banks is


Branch Banking with 30.47% of the respondents
choosing this option. Phone Banking comes next with

81
19.05% of the respondents choosing this as the most
frequent point of interaction.

Internet Banking is favored by 7.6% of the respondents


as their favorite medium and Drop Box Facility is not
considered by anyone as their most frequent point of
interaction.

MOST IMPORTANT QUALITY IN A BANK

MOST IMPORTANTANT QUALITY IN A BANK

ATMDécor of Bank
12% 0%

Courteous Staff
26% Efficient service
62%

The next aspect that has been tried to be analysed is the


most important quality a Bank should have in the minds of
the account holders. It would help the Bank in improving it’s
overall service levels in the future if the Banks knew what
were the Qualty aspects which the Account holders valued
the most.

The Four variables studied included the ATM service the


Bank provides , level of Effiency that Banks exhibits , the
general Decor/Ambience that the Bank Branches have , and
Staff Courtesy.

82
If the service provider is able to know what is the most
important of these above four important variables , it would
help the Bank improve it’s service levels in the future. But
this would be useful for the Bank only when the Bank is
itself honest in admitting where they are not performing as
well as they should be.

From the survey of more than hundred respondents


belonging to different Banks we can to the conclusion that
Efficient Service offered by Banks is considered most
important by account holders , 62% of the respondents
felt that the Bank should concentrate more on this service
aspect.
The above result shows an overwhelming majority of the
respondents favoring this variable , and Banks should stress
highly on providing Effficient Service to it’s customers.

The next aspect which is considered highly important by the


Account holders of various Banks is the Staff of the Bank.
It is true that today’s Banking far less of Branch Banking as
it was the case a few years ago , today Account holders
have a constant interaction with non-human interface like
ATM machines , Internet Banking , Drop Box , Even Phone
Banking when customers do not interact in a face to face
manner with the Bank employees.
But in the minds of the respondents it is very important that
the Staff the Bank employs should be cooperative ,
courteous and qualified to solve the various problems of the
Account holders. The percentage of respondents favoring
Staff quality as most important was 26% of the entire
sample size.

The most frequent point of interaction with the Bank is ATM


facility, the Account holders whether in Private/Foreign
sector or the Government sector have been provided with
ATM facility by their respective Banks. To judge the
performance level of any Bank today it is crucial that the

83
ATM service of the Bank be studied, this includes not only
the number of ATM machines installed by the Bank , but also
how technologically advanced the machines are (number of
transaction that can be done with the ATM Facility), the
effort Bank undertakes to maintain the machines and also
the overall experience of the Account holder with the
service.
The percentage of respondent considering the ATM service
as most important were 12% of the total sample size.

With the advent of Private/Foreign Banks in the Indian


Banking sector there is a marked effort been made to
project Banks as thriving and prosperous organizations so
that more and more clients can be convinced to do business
with the Bank. For this a lot of effort is made by Banks to
hose their Branch in high profile locations (famous shopping
malls , business centers , etc.) these Branches are very well
maintained and could be easily confused for some deluxe
hotel reception area. Gone are the days of ill-maintained
nationalized Bank Branches , even these Government Banks
are making efforts to improve the image in the eyes of the
public , and are running well-maintained Branches.
But from the respondents who were questioned none of
them said that the Décor/Ambience of the Bank
Branch was most important. On further Questiomning it
was revealed that they did want well-maintained
Branches/Other Bank Interaction points but this was not the
most important aspect.

84
FACTOR HAVING MOST BEARING ON
CHOOSING A BANK

FACTOR HAVING MOST BEARING ON CHOOSING


A BANK

Rate of Interest
Others Offered
Branch near
16% 3%
Office/Residenc
e
36%

Reputation of
Bank
45%

All Banks are keen to find out that one reason that made a
prospective client make up their mind to open an Account
with the Bank, this is a very important aspect but the truth
of the matter is that there is no single one reason which
convinced the customer to open an account with the Bank ,
a variety of reasons in acting in tandem help a prospective
customer make up his mind.

85
The most important factor according to responses that have
been collected from account holders belonging to different
Banks is the Reputation the Bank commands in the market.
This reputation does not come overnight , service
organization especially Banks have to work for decades
before which they are able to earn the recognition and trust
of the public. They have to do business Ethically and totally
within the perview of law before which they can earn
goodwill of the people. Any breach on part of the Bank might
adversely affect the Banks Reputation beyond repair.
Nearly half of the entire sample (45%) considered
Reputation of the Bank as the key factor which helped
them choose their Bank.

The next most important factor which helped the Account


holders choose their respective Bank was Closeness of
Branch/ATM from the Residence/Office of the customer.
Convenience to transact is an important factor that comes to
everyone’s mind when it comes Banking. If the Bank offers
it’s Account holders many ATM machines to transact then
this would definitely attract many people to open their
accounts with the Bank. The distance of the Branch from the
place of residence or office is always considered whenever a
Bank is chosen.
More than one-third of the total respondents (16%)
considered this as the most important factor when choosing
a Bank account.

The third highest individual factor which arose is the Rate


of Interest that is being offered by the Bank, 3% of the
total respondents choose this option.
The above result may come as suprising , So on further
questioning it was recvealed by the respondents that they
do not consider Rate of Interest as an important factor in a
Saving Account as there is constant stream of withdrawls
and deposits in a saving account , so there is little chance of
earning much interest on this account. But Rate of Interest

86
offered Bank is extremely important when it comes to
investing in other Bank products like Fixed Deposit Accounts
(F.D. Accounts).

PRIVATE BANKS PROVIDE SUPERIOR


SERVICES COMPARED TO GOVERNMENT
BANKS ?

PRIVATE BANKS PROVIDE SUPERIOR


SERVICES AS COMPARED TO GOVERNMENT
BANKS ?

No
21%

Yes
79%

The general perception is that the service quality of Private


Banks is superior to that offered by Government sector
Banks , we wanted to study whether this is a true
phenomenon or whether this was just hearsay.

The most important findings would come from the group of


respondents who hold Saving Accounts with both Private
and Government run Banks , as these people would be
in the best position to judge the service offered by the
Banks.
According to this group of respondents the Range of
Products that are offered by Private sector Banks are
much more diverse than those offered by Government
Banks.

87
Also these respondents felt that the Banks in the Private
sector were much more flexible than their Government
counterparts when dealing with customers were
concerned.
Private sector Banks are much more proactive when it
comes to offering it’s customers new-age methods of
Banking like ATM Facility , Internet Banking , Phone
Banking, These services make the life of Account holders
much easier.

Another major difference that comes to most of the


respondents minds when comparing the Private and
Government sector Banks is the Staff Attitude towards the
customers. Sure Private sector Bank Account holders have
had problems dealing with Bank Staff , But they still feel it is
much better than how Government employees behave.
These Government employees show as if they are doing a
favoring on the customer when they do their job.
Private sector Bank customers are offered many freebies
and incentives to remain with the Bank , or try new
products of the Bank. This is never the case with
Government Banks.

Overall the result of this question very clearly states that


people consider the service level of Private Banks
much higher than Government Banks as 79% of the
respondents agree and only 21% of the respondents
disagree.

88
IS MONEY MORE SAFE IN A
NATIONALIZED BANK RATHER THAN A
PRIVATE BANK ?

IS MONEY MORE SAFE IN A NATIONALISED


BANK RATHER THAN A PRIVATE BANK ?

50 45
40 33
30
20
20
7
10
0
0
Strongly Agree Neither Agree Disagree Strongly
Agree nor Disagree Disagree

The safety of Funds that are invested in a Bank is of


primarily importance in every depositors mind. Ever since
Private and Foreign Banks came on in the Indian scene there
has lingered in the minds of potential depositors whether the
money they invest in these Banks would be returned to
them . This could have been the reason that even after
providing much superior service as compared to Government
Banks the deposit base of these banks have not reached
their potential.

Hence to judge the Market Potential of Saving Accounts it


was very important to access whether potential and current

89
clients have the feeling that Private sector Banks are not as
safe as their Government counterparts.

The results from the respondents Questioned is extremely


promising as out of the total sample size only 7% felt that
private Banks were not as safe as their Government
counterparts.

The largest chunk of respondents were who said they


Disagreed to the statement that Private Banks were not as
safe as the Government Banks representing 46% of the
respondents. Another 33% of the respondents felt that
they Strongly Disagreed to the above and 20% of the
respondents Neither Agreed nor Disagreed to the above
statement.

From the above implication it is very clear that today the


public has come to trust the Private sector Banks , this can
also be seen from the fact that the deposit base of Private
Banks is increasing at a higher pace than that of
government Banks are rising.

DOES ADVERTISEMENTS HAVE BEARING


ON CHOICE OF BANK ?

90
DOES ADVERTISEMENT HAVE BEARING ON
CHOICE OF BANK ?

Yes
31%

No
69%

Advertisement has become an important means used to


popularize the goods and services produced by different
organizations. Banks are no exception to this , Banks often
advertise in Newpapers , magazines , television , etc
informing people regarding new products being introduced
by them.

With the emergence of Private and Foreign Banks who aim


to provide the customers with a differentiated product ,
advertisement plays an important role in creating a image in
the minds of the people of a highly differentiated product.
These Banks keep aside a huge advertisement budget , And
it is not uncommon for Celebrities from movies and sports
industry to endorse the products being offered by the Banks.

It is important to know whether people feel that they get


influenced by Advertisements , and if the answer is yes then
it would be worthwhile for the Banks to invest more on
advertisements.

The results from the study shows that according to people


advertisement does have a bearing on choice of Bank ,

91
More than 69% of the respondents felt Advertisement
is important while the balance 31% felt the opposite.

DO FREEBIES OFFERED BY THE BANK


HAVE A BEARING ON THE CHOICE OF
BANK ?

DO FREEBIES OFFERED BY BANKS HAVE


BEARING ON THE CHOICE OF BANK

No
41%

Yes
59%

Apart from advertisements Banks often offer prospective


customers offers and incentives to lure them to open
accounts with the Bank. This freebies include free debit

92
card , free insurance or some other of the Banks products. It
is seen these incentives have some effect on convincing the
customer to open an account with the Bank.

These offers and incentives help the Bank in offering a


Differentiated product in a highly competitive market.

It is necessary to know whether these free incentives offered


have a bearing on the choice of Bank. Out of the
respondents questioned 59% of the respondents felt
that these freebies does help them make up their
mind regarding a certain Bank , while 41% of the
respondents felt that these were not important.

Standard Chartered Bank

POSITIVE ASPECTS

1. Debit card holders of Standard Chartered Bank Access


Plus Saving Account can use their card to transact from
other Visa Electron machines four times free per month.
This is a unique benefit which is available to Standard
Chartered Bank customers. After the free transactions
every time other machines are used RS. 50 is charged per
transaction.
This is over and above the Unlimited free use of Standard
Chartered Bank machines the customer is entitled.

One more Bank which allows it’s customers two free use
of other Bank machine is ABN Amro Bank. All other Banks
charge their customers if they use other Bank machines.

Standard Chartered Bank has a network of 246 machines


All over India and 35 in the Delhi Region alone. The

93
corresponding figure for ABN Amro is 40 and 13
respectively.

In the study an attempt was made to find out how many


times the ATM Facility was used by Account holders per
week , the results showed that 50% of the respondents
used the machine Less than two times per week and 40%
used the Facility between two and four times per week.

From the above we can infer that on the basis of ATM


usage rate Standard Chartered Bank Account holders
would not get in a position that they might have to pay
the transactional fee of using other Bank machines.

2. Average Banking hours (10am to 7pm) of Standard


Chartered Bank is nine hours per day. This is very good
when compared to other Banks.

Only ICICI Bank has better working hours (8am to 8pm) ,


But it does not offer it’s customers 24 Hour Branch and
365 Day Branch as is the case with Standard Chartered
Bank.

Standard Chartered Bank is the only Bank in the country


offering a 24 Hour Branch. At this Branch account holders
can do their Banking transactions at any time. This is one
of the many firsts which Standard Chartered Bank is
associated.

Apart from Standard Chartered Bank , ABN Amro Bank is


the only Bank which offers a 365 Day Branch.

Sunday Banking is allowed at Standard Chartered Bank ,


this is a unique feature as established Banks like ICICI
Bank and HDFC Banks do not provide these services.

94
The Account holders are very satisfied with these facilities
offered by Standard Chartered Bank.

3. The Maximum Withdrawal Limit from a Standard


Chartered Bank ATM machine per day is RS. 25000. By
allowing it’s customers access to this amount of their cash
Standard Chartered Bank is allowing lot of Convenience to
it’s customers. It frees the customers of the worry that if
there is an emergency , he will not fall short of cash.
The ATM facility users at the Bank are very satisfied by
this service.

The above limit for ICICI Bank and HDFC Bank is


RS.15000 , which is far less than Standard Chartered
Bank’s limit.

4. Standard Chartered Bank offers it’s customers the facility


of cash transaction from non-branch , this is also one of
the unique facilities offered by the Bank. Established
players like ICICI Bank and HDFC Bank does not provide
this service.

The Account holders of the Bank find the above extremely


useful.

5. Standard Chartered Bank offers to it’s Account holders to


Link Their saving account with other Standard Chartered
Bank products like credit cards, etc. The customers of the
Bank find this facility very useful as it frees them of the
worry of having to make individual payments , and having
to remember due dates.
Another very useful service offered to the Account holders
is the automatic payment of Utility Bills(electricity, water,
phones payments).

95
CONCLUSION

1. Standard Chartered Bank is a Leading Bank in the country


, it provides a variety of products and services to different
segments of customers.

2. The Bank aims to serve customers from teenagers to


senior citizens , hence different products designed to suit
specific requirements of the above.

3. Aims to serve all classes of the society from the salaried


middle class to the high income business class.

Customers are categorized and segmented according to


their requirements and needs.
For Example , the Axcess Plus Saving Account aims to
serve middle class customers so minimum balance
required to be maintained is RS. 10000. While the Super

96
Value Saving Account is targeted at high income
customers, the minimum balance requirement is RS.
50000.

4. Customers who are more profitable to the Bank (High


Value Customers) are provided special facilities. Priority
Banking is meant to serve these high value customers.

5. The Bank prides itself with the ability to provide


differentative products in the crowed market of saving
accounts. Bank offers free insurance , special co-branded
debit cards (Smartfill Debit Card) which makes it’s
product unique.

6. The Bank is also involved in marketing activities which


serves as a medium of advertisement for the Bank. These
are as follows:

• Extended happy hours at certain pubs in Delhi


for the Bank’s account holders.

• Gift Vouchers on making utility payments , such


as cell phones , electricity and MTNL bills.

• Free Gifts like T-shirts/watches to it’s customers.

• Free add-on cards for relatives.

7. The Bank wants it’s customers to transact more through


Internet Banking and ATM , Rather than the customers
using the branch.

8. The Credit/Debit Cards provided by the Bank are


Internationally Accepted around the world , Hence giving
the customers the convenience to transact anytime ,
anywhere.

97
9. The Bank has tied up with other Banks so that it’s
customers can use other Bank’s ATM facility for free (four
free transactions)

10. The Bank also provides DEMAT account and also sells Mutual
Funds , this provides the Bank and Government additional
revenue.

11. The Bank has been very successful in enlarging it’s


customer base during the last couple of years.

12. The Number One Reason of people choosing Standard


Chartered Bank is the Brand Name/Reputation of the Bank.
Hence it should be careful that the Brand name and
Goodwill the Bank has earned is not diluted.

13. The Biggest competitors of the Bank are ICICI Bank and
HDFC Bank.

14. ATM Facility is most popular way to transact with the


Bank.

15.Overall the customers appreciate the service and


products offered by the Bank and are willing to
recommend the Bank to their acquaintances , But more
attention has to paid towards:

• Increasing the number of ATM machines.


• Improving Internet Banking Facility.
• Correspondence from Bank reaching in time.
• Employee Courtesy.

16. Advertisements do play a role in attracting prospective


customers to the Bank.

98
GENERAL FINDINGS
1. ATM Facility is more widely used by customers belonging
to Private/Foreign Banks as compared to Government
Banks.

2. Customers value Efficient Service over every other


aspect , this is far more important than the number of
ATM machines , Staff , Décor of Bank.

3. Reputation of Bank is most important when it comes to


choosing especially a Private Bank.

4. The general perception is that Private Banks provide


better services as compared to a Government Bank.

5. People realize that Private Banks are as safe as compared


to Government Banks.

6. Advertisements and Freebies can be used to attract more


customers.

99
SUGGESTIONS

The “SUVIDHA” Account that is offered by CITIBANK has


become very popular in Banglore , But the biggest
competition to Standard Chartered Bank especially in Delhi
and Mumbai are ICICI Bank and HDFC Bank.
To gain a foothold in these lucrative markets Standard
Chartered Bank should:

1. The Number one complaint of Standard Chartered Bank


customers is the limited number of ATM machines (Delhi-
35 All India-246) that the Bank operates. Since ATM is
the most popular point of interaction with the Bank it is
imperative that the Bank increases the number of ATM
machines.

Standard Chartered Bank must enter into alliances with


other Banks , so that it’s customers can use those Bank’s
ATM facility free of any charge.

2. The Bank should upgrade the ATM machines with video


conferencing facility , this would help the Bank project the
ATM machine as a mini-branch.

3. The Bank should take advantage of it’s world wide


network of ATM machines , as more and more Indians are
travelling abroad. The advantages of being able to access
one’s account anywhere in the world must be highlighted.

4. The Bank should reduce the Transaction cost of Non-


Standard Chartered Bank ATM machines.

100
5. Account holders of Standard Chartered Bank often have
experienced that there is a delay on the part of the Bank
to dispatch correspondence meant for the Account holder.

More than four-fifth of the respondents were Dissatisfied


to a certain extent because of delay for important
correspondence in reaching the customer in time.

6. Account holders who have applied for Internet Banking


complain that there is a delay in the password reaching
them , hence causing inconvenience. Also there have
been occasions when Debit Card has reached but PIN
which comes separately has not reached.

7. Apart from this account holders have been frustrated


because of delay in the Statement of Account reaching
them.

8. Overall the Account holders who have availed the Phone


Banking service are quite satisfied with the service , they
feel it is a useful and convenient facility. But some
respondents felt that it would be better if the Phone
Banking executives were more sensitive to the needs of
the customers , and made effort that the problem is
solved without the Account holder requiring to call again.

9. Set up a dedicated call center for Debit card holders on


the same lines of the Global Consumer Bank Division for
Credit Cards.

10. Account holders feel that it would be good if the Bank


offered incentives, freebies to it’s existing customers , this
would keep the customers happy and satisfied with the
Bank.

101
Account holders feel that the Bank is quick to give offers
to it’s customers only when it feels that customer is going
to stop doing business with the Bank.

11. Another overwhelming Demand of the Account holders of


the Bank is that they should receiving free monthly
statement of account from the Bank instead of the current
quarterly statement.

The account holders of ICICI Bank and HDFC Bank get


Free monthly statements and the customers feel that there
is no reason why Standard Chartered Bank should not
provide them with the same.

12. Door Step Banking is a medium of Banking for the future,


Standard Chartered Bank is again been in the forefront of
offering new and innovative facilities to it’s customers.

Leading Banks such as ICICI and HDFC are yet to provide


this service to it’s customers.
The Bank should put in extra effort to popularize this
service.

13. The Bank should launch schemes whereby people are


encouraged to open accounts for their children , also special
incentives and offers should be given for students to open
accounts with the Bank.
This would help increase the deposit base of the bank.

14. Try to convince companies to open Corporate Accounts


with the Bank.

15. The Bank should extend the service of dropping important


documents to all it’s customers. This facility should not be
restricted to the high value customers.

102
16. It was observed that during the Branch visits there was
insufficient or waning management support , this aspect
needs to be looked into

103
104
THE SURVEY OF CUSTOMERS OF TEN
DIFFERENT BANKS REVEALED CERTAIN
INFORMATION REGARDING SERVICE
QUALITY OF THESE BANKS

ICICI Bank
ATM Facility:

The ATM Facility provided by the Bank is extemely good, the


network of ATM machines spread all over the country is
extremely intensive.
The machines of the Bank are good and generally the users
do not face many problems with the machines.
One problem associated with the machine is that their
screens are not too large and can seem cluttered to some
users, Also there is difference in the machines which are
located in cities and those located on highways.

Employees:

ICICI Bank Employees can be at best be catergorized as


Average. Some respondents holding accounts with ICICI
Bank feel that the Employees are moody , so sometimes
routine work is delayed because of the employees.
There are some respondents who felt that some of ICICI
Bank employees lack the basic product knowledge of ICICI
Bank.

Phone Banking

The Phone Banking Facility provided by the Bank is not


considered very effective by the clients of ICICI Bank who

105
participated in the study. Many of the respondents
interviewed were not satisfied by the Phone Banking Facility.
The Account holders at ICICI Bank felt that there was a time
lag between when problem is reported at Phone Banking and
when it is resolved.

Internet Banking

The Internet Banking Facility provided by ICICI Bank is well


appreciated by the Account holders of the Bank. Though the
facility is not very widely used by all of the Bank’s customers
, but the people using the service find it very useful.

Positive Aspects

The customers find the Linking of Accounts of ICICI Bank


with other products of the Bank like credit cards extremely
useful as it frees the customers to worry constantly about
paying different Bills at different times.

Web Enabled Accounts of ICICI Bank is well appreciated by


it’s customers. With the help of this service it is possible to
transfer money between different accounts (No Cheques
needed and No Waiting period)

Negitive Aspects

Machines are not uniform.

HDFC Bank
ATM Facility

106
The HDFC Bank Account holders who were included in the
study were extremely satisfied with the ATM Facility
provided by the Bank. HDFC Bank has a extremely large
number of ATM machines located All over India. The
machines operated by the Bank are technologically
advanced and a large number of transactions can be carried
out on the machines.

Employees

The HDFC Bank clients who were interviewed are very


satisfied with the Employees of the Bank. They felt that the
Employees are courteous when dealing with the customers.
The Employees are efficient when dealing with a variety of
complicated transactions.

Phone Banking

The HDFC Bank Phone Banking is considered extremely


useful by many of the Banks account holders. The
respondents have had good experience with the Phone
Banking facility of the Bank. They are impressed in the way
the Phone Banking executives quickly and efficiently solve
the Account holders requests and queries.

Internet Banking

The respondents who have accounts with the Bank and


regularly use the Internet Banking facility find the service up
to their expectations. The facility is very good and useful for
the customers.

Positive Aspects

HDFC Bank is a Leader and other Banks in the Banking


industry follow it. The Bank has a Technological Edge when
it is compared to it’s competitors.

107
The Account holders of HDFC Bank feel very impressed by
the Customer Service of the Bank.

The Bank has a Good Range of Products which it offers to it’s


customers and it has a Good variety of products.

CITIBANK
ATM Facility

There are not many ATM machines of CITIBANK located in


different parts of the country. In total the Bank operates 160
ATM macchines in India , and the Delhi figure is 22. This is
one aspect where CITIBANK is lacking.
The respondents in general find the ATM machines installed
by the Bank Technologically advanced and these are capable
of carrying out a variety of transactions. In general the
respondents have not faced any problems in operating the
machines.

Employees

When the respondents who have had experience in dealing


with CITIBANK were questioned about the employees an
suprising fact came out. CITIBANK clients were not satisfied
by the staff of the Bank , some respondents felt that
CITIBANK employees had a definite attitude problem when
dealing with customers.

Phone Banking and Internet Banking

The customers of CITIBANK included in the study found the


Phone Banking and Internet Banking Facility offered by

108
CITIBANK highly useful. Majority of the customers were
highly satisfied with these facilities.
Through Internet Banking the Account holders in CITIBANK
could do all transactions while sitting at home , they could
get cheque books , demand drafts while sitting at home with
the help of these service.
These mediums of Banking are encouraged to be used as
CITIBANK wants to minimize Branch Banking.

Positive Aspects

CITIBANK Saving Account holders were satisfied by the


“SUVIDHA Account” of CITIBANK , the Account holders
felt that this Account offered them a variety of benefits and
offers. It is an unique product in the market of saving
accounts.

The Account holders of CITIBANK were satisfied by the Debit


Card facility offered by the Bank , using this card the
Account holder was able to receive good discounts at a
number of outlets.

Another aspect that was liked about CITIBANK was the


minimum balance which was required to be maintained the
account holders (RS. 1000). This was unlike all other Private
Banks operating in India which demanded a higher balnce to
be maintained.

Negitive Aspects

Almost all the CITIBANK customers who were included in the


study felt that the charge that was levied on them when
they did Branch Banking was unreasonable , they felt that it
was their right to visit the Branch to do transactions and
they should not be charged for this.

109
Some customers of the Bank felt that as far as standardized
services were concerned CITIBANK did a good job , But
when customized services needed to be provided CITIBANK
was not up to the mark.

HSBC Bank
ATM Facility

The number of ATM machines operated by the Bank were far


from satisfactory , the Bank operates 103 ATM All over India
and it had 21 such machines located in Delhi.
But despite small number of ATM machines the customers of
HSBC were satisfied by the ATM service, they the machines
technologically advanced and all transactions can be done
through the machines.

Employees

The employees of HSBC Bank are Good , Helpful and


Efficient from the past experience of the Account holders of
the Bank. The Account holders of the bank feel that the
employees of the Bank are Flexible when it came to be
dealing with it’s customers. The employees are Efficient
when it comes to dealing with customers Queries and
Problems.

Phone Banking and Internet Banking

The Phone Banking and Internet Banking of HSBC Bank is


Good, the customers of the Bank were quite satisfied by
these services that were offered by the Bank. Since the
Bank does not have many Branches (Delhi-3 , All India-28)
these services helped the customers to do a number of
transactions while sitting in their homes/ offices.

110
Positive Aspects

The Customers are very satisfied by the service level of the


Bank. They felt that Banking with HSBC gave them Very
Good Banking Experience.
Also the Banking Service is Very Good.

ABN Amro Bank


ATM Facility and Branches

ABN Amro Bank does not have many branches and ATM
machines located all over India. The number of Branches
that the Bank operates is 3 in Delhi and 9 All over India. The
tally for the ATM machines is 13 and 40 respectively.
The Account holders of ABN Amro Bank are satisfied with the
ATM machines installed by the Bank. They have had a
trouble free experience while dealing with the machines. The
ATM machines are Technologically advanced and were well
maintained.

Employees

The Employees of the Bank are Good, the Bank is kept


Knowledgeable staff. They are helpful and are flexible, the
staff is ready to work on oral requests and do not insist on
unnecessary paper work which make the life of the
customers much easier.

Positive Aspect

There is a strong focus of the Bank on the Customer


Relationship Management Aspect.

111
IDBI Bank
ATM Facility

The number of ATM machines that have been installed by


the Bank is 43 in Delhi and 350 All over India. This is not a
very large number of machines.

Employees

The Employees at IDBI Bank can be best described as


Average. The front office of the Bank has young faces but in
the back office has people with the old public sector Bank
stubborn attitude.

Positive Aspect

IDBI Bank is a Extremely Techno savvy Bank , it is one of


the only Banks in India which has the facility of locating a
branch of IDBI Bank with the help of a cell phone.

State Bank of India


ATM Facility and Branch

Being the oldest and largest commercial bank operating in


the country , SBI has the largest number of Branches in
India. SBI Branches are located all over the country , be it a
large metro city or the smallest village.
SBI offers to it’s customers a very large number of ATM
machines which are located extensively all over the country,
it has the largest number of ATM machines out of every
Bank.

112
Employees

When we talk about the employees of the Bank, SBI suffers


from the same fate as that is suffered by most of the
Government Banks. It’s employees are careless and
indifferent , they lack proper training. The experience of
most people with SBI employees is not too good.
The CRM aspect is ignored to a great extent by the Bank.

Internet Banking

SBI has the facility of Internet Banking , but the service


would require a little more time to pick up. More effort would
be have to be taken by the Bank to improve and further
popularize this service.

Phone Banking

The Phone Banking facility that has been offered by the


Bank is not very effective in solving the problems of the
customers satisfactorily. Several calls have to be made to
Phone Banking for solving even routine problems and still
there is no guarantee that the problem would be solved.

Positive Aspect

State Bank of India caters to all segments of the society.

Negative Aspects

There is a lot of Internal Politics and Beauaracracy in this


organization. No effort is made on CRM Aspect of service.

Long time taken to receive ATM facility , even routine tasks


take a long time.

113
Punjab National Bank
ATM Facility and Branches

The number of ATM machines that have been installed by


the Bank is not too large, but the machines are good and in
proper working condition. Since this is a relatively new
service for the Bank , this would definitely improve in the
future.

Employees

The Employees of the Bank can be described as Average. A


lot of Experienced Staff has been lost due to V.R.S.

Bank of Baroda
ATM Facility

There are very few ATM Branches that have been set up by
the Bank.

Employees

The Employees of BOB can be described as Average , as is


the case with most Government Banks.

Positive Aspects

Bank of Baroda is one of the Top 5 Nationalized Banks of


India.

The minimum balance required to be maintained is RS.


1000.

114
It has a Forward Looking Approach. Bank of Baroda
introduced the BOB Card (Credit Card) long before Private
Sector banks introduced Credit Cards in India.

Andhra Bank
ATM Facility

The ATM Facility of the Bank is not very good, because of


relatively few number of ATM machines.

Employees

The Employees of the Bank are good, they are efficient ,


caring and there is stress on CRM aspect.
There is flexibility and personalized service is provided.

115
LIMITATIONS

While performing the analysis and research work and


finally at the time of formation of this thesis report
certain limitations were faced, which are mentioned
as under:

1. Confidentiality as well as compliance issue: Not


being an employee there were certain limitations,
restrictions and compliances to the amount of information
and data, which could be retrieved.

2. Time Consideration: It takes a lot of time and effort to


collect sufficient and meaningful data in regards to the
market of saving accounts. Since the Report was to be
submitted within a period of two months , lack of time
was always a problem.

3.Lack of primary data: A research study could have


been conducted to gather employee and customer
feedback on various matters like effectiveness of new
marketing strategies and their impact on the
consumption of various Standard Chartered Bank
products such as personal loans, “add on” cards
(Debit/Credit cards), online/net banking, phone banking
as well as problems faced while visiting ATMs. This data
would have made the report more interesting. Due to
lack of time, much-planned visits to the companies'
officials to collect relevant data could not be carried out
in a systematic manner.

4. Lack of cooperation from the employees of the


companies: During the visits to the branches of the

116
bank, the senior officials and department heads of the
bank were not very co-operative. They were engrossed in
their work that they could hardly spare much time for
detailed discussions.

5. Inability of the employees to provide past


secondary data: Collection of the recent newsletters,
brochures, in house journals, etc, of the bank were
relevant to a little extent, as most of them were
unavailable with the officials or the employees of the
bank.

117
BIBLOGRAPHY
There was immense need and flow of the information while
conducting the analysis as well as while writing the thesis
report, which was gathered through various sources
mentioned below:

Internet

www. Standard Chartered Bank. com


www. Standard Chartered Bank.co.in
www. Standard Chartered Bank.com
www.indiainfoline.com
www.google.com
www.economictimes.com

Various Magazines and Newspapers such as

A&M
Outlook
Financial Times
The Economic Times
The Times of India
The Hindustan Times

Reference Books-

Marketing Management – Philip Kotler


Marketing Management- V S Ramaswamy & S Namakumary
Marketing Research- Harper W Boyd, Jr; Ralph Westfall;
Stanley F.Stasch

118
Journals, Broachers and various other documents gathered
and collected from bank and various other sources such as
ATM centers and associates.

119
APPENDEX

The Questionnaire used specifically for standard Chartered


Bank Account holders is below.

The responses of 50 Account holders were taken using this


Questionnaire.

QUESTIONNAIRE

NAME
ADDRESS

AGE
Below 25 years 25 to 40 35 to 50 50 to 60 Above 60 years

OCCUPATION
Business Professional Service student Others

ANNUAL INCOME
Less than 1.5 lakhs 1.5 lakhs to 3 lakhs 3 lakhs to 5 lakhs Above 5 lakhs

1) For how long have you held a saving account with the bank?

Less than 6 months 6 months to 1 year

1 to 2 years Over 2 years

What made you choose Standard Chartered Bank?

Recommended by family/friends

Brand Name/Reputation of Bank

Advertisement

Branch near Residence/Office

Other Reason (please specify)

120
In addition to the above account do you hold a saving account in some other bank?
If yes please specify below.

What is your most frequent point of interaction with the bank?

Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking

How many times a week do you use your ATM/Debit Card?

Less than 2 times a week


2 to 4 times a week
More than 4 times a week

Rate your Satisfaction level on the following specific parameters regarding the
services offered by Standard Chartered Bank.

Very Somewhat Neither Somewhat Very


Satisfied Satisfied Satisfied Dissatisfied Dissatisfied
nor
Dissatisfied

Overall
Satisfaction
Level
Number of
Branches
Number of
ATM
Banking
Hours(Avg.
10am-
7pm.)
Phone
Banking
Internet
Banking
Bank Staff
(courteous,
qualified)
Efficiency in
handling
daily
transaction
Statements
reach in

121
time

In your opinion is the minimum balance(Rs. 10000) on the high side?

Yes No

Do you think the bank should communicate more by way of advertisements to


convey to the customers regarding new products?

Yes No

Would you Recommend this bank to your acquaintances.

Yes No

Are there any suggestions which according to you will make the services of the bank
better? If yes please specify in the space below.

122
The Questionnaire below was used for Non-Standard Chartered Bank account holders.
Responses of 105 Account holders were taken using this Questionnaire.

QUESTIONNAIRE

NAME
ADDRESS

AGE
Below 25 years 25 to 40 35 to 50 50 to 60 Above 60 years

OCCUPATION
Business Professional Service student Others

ANNUAL INCOME
Less than 1.5 lakhs 1.5 lakhs to 3 lakhs 3 lakhs to 5 lakhs Above 5 lakhs

1) Do you hold a saving account?

Yes No

2) If yes in which banks.

3) Out of the above accounts which do you use most frequently ?(please specify)

4) Apart from saving in a bank account where do you invest your money?

Land/Property

Capital markets(shares,mutual funds,etc)

123
Jewellery

Others (please specify)

5) Do you get a ATM/debit card facility from your bank?

Yes No

6) How many times a week do you use your ATM/Debit Card?

Less than 2 times a week


2 to 4 times a week
More than 4 times a week

7) What is your most frequent point of interaction with the bank?

Visit Branch
ATM
Phone Banking
Drop Box
Internet Banking

8) Rate your Satisfaction level on the following specific parameters regarding the
services offered by the Bank.

Very Somewhat Neither Somewhat Very


Satisfied Satisfied Satisfied nor Dissatisfied Dissatisfied
Dissatisfied

Overall
Satisfaction
Level
Number of
Branches
Number of
ATM
Banking
Hours
Phone
Banking
Internet
Banking
Bank Staff

124
(courteous,
qualified)
Efficiency in
handling
daily
transaction
Statements
reach in time

Rank the following according to the importance you attach to the following parameters.

Efficient/Instantaneous service

Friendly/Qualified staff

Number of ATM’s of bank

Décor/Atmosphere of bank

Which of the factor do you consider most important in your choice of bank?

Rate of interest offered


Branch near Residence/Office
Reputation of bank (good/efficient services offered)
Others (kindly specify)

11) Do you believe that Private/Foreign banks provide superior services than Nationalized banks?

Yes No

12) Do you agree with the view that your money would be more safe in a Nationalized bank rather than a
foreign bank.

Strongly Agree
Agree
Neither Agree Nor Disagree
Disagree
Strongly Disagree

125
13) Are you influenced by advertisements in your choice of bank?

Yes No

14) Do additional schemes/benefits (free insurance, free debit card, privileges/discounts on use of debit
card, etc.) offered by banks have a bearing on your decision when you open a saving bank account?

Yes No

126

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