IDBI BANK LIMITED

IDBI BANK LIMITED 36 AMAR ENCLAVES, EAST MODEL TOWN, GT ROAD, GHAZIABAD

2010
To study the consumer behaviour about IDBI bank and its products and the competitive advantage of IDBI Bank with respect to the other banks

ACCMAN INSTITUTE OF MANAGEMENT, Greater Noida.

Certificate

This is to be certified that MR VIJENDRA KUMAR MAHATO AND MONALISHA GUPTA, students of POST GRADUATE DIPLOMA IN MANAGEMENT from ACCMAN INSTITUTE OF

MANAGEMENT, Greater Noida has under taken two month project program from 1th of May 2009 to 30th of June 2010.

With the bank and for the bank he/she offered the project title Awareness of the people towards IDBI Bank and competitive advantage of IDBI Bank with respect to other banks., and given his/her all efforts. His/her contribution through this project is really commendable.

Dated: - 30/06 /2010

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ACKNOWLEDGEMENT
There are number of people to acknowledge and thank for their contributions to this Project. Here is a consideration of all those esteemed people who provided not only their valuable time but also their views and transferred their knowledge and experiences, which further enhanced the project and made it more than what it would have been. We would also like to thank our Mentor Mr Abhishek Pandey who provided his valuable guidance, which has helped us in enhancing the quality of the project report and also to deans for arranging organization study for all students. Also, please accept sincere apologies along with a thank you who have contributed but their names have not been included. Thank You
Yours faithfully,
MONALISHA GUPTA MR VIJENDRA KUMAR MAHATO ACCMAN INSTITUTE OF MANAGEMENT

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DECLARATION
We students of PGDM here by declare that, all the information, facts, figures in this report is ours own findings and experience. We also here by declare that all the facts, figures and information given in this report is absolutely correct.

This information has been used for purely academics purpose.

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CONTENTS
History of IDBI Bank Overview of development banking IDBI Today Vision statement Products and services offered Milestones Theoretical perspectives Research methodology Research methodology used Observations Competitive advantages of IDBI Bank with other bank SWOT Analysis TOWS Matrix IFAs EFAs SFAs CSFA Comparative study of IDBI Bank with other bank Findings Recommendations Questionnaire References 6 11 11 12 20 24 26 34 39 5

56 57 58 59 60 61 62 63 65 66 67 69

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History
IDBI was set up under Act of Parliament as a wholly owned subsidiary of Reserve Bank of India in July 1964. In February 1976, the ownership of IDBI was transferred to government of India.

In January 1992 IDBI accessed domestic retail debt market for the first time with innovative Deep Discount Bonds and registered path breaking success. In December 1993, IDBI set up IDBI Capital Market Services Ltd as a wholly owned subsidiary to offer a broad range of financial services, including Bond Trading, Equity Broking, Client Asset Management and Depository Services. In September 1994, in response to RBIs policy of opening up domestic banking sector to private participation, IDBI in association with SIDBI set up IDBI Bank Ltd.

Overview of development banking in India

The concept of development banking rose only after Second World War, Successive of the Great Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up a world wide institution for reconstructions. As a result the IBRD was set up in 1945 as a world wide institution for development and reconstruction. This concept has been widened all over the world and resulted in setting up of large number of banks around the world which has coordinated the developmental activities of different nations with different objectives among the world. The course of development of financial institutions and market during the post independence period was largely guided by the process of planned development pursued in India with emphasis on mobilisation of savings and channelizing
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investment to meet plan priorities. At the time of Independence in 1947, India had a fairly well-developed banking system. The adoption of bank dominated financial development strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and industry. Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms for institution building. The commercial banking network was expanded to cater to the requirements of general banking and for meeting the short-tem working capital requirements of industry and agriculture. Specialised development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long term financing requirements of industry and agriculture. The early history of Indian banking and finance was marked by strong governmental regulation and control. The roots of the national system were in the State Bank of India Act of 1955, which nationalised the former Imperial bank of India and its seven associate banks. In the early days, this national system operated along side of a large private banking system. Banks were limited in their operational flexibility by the governments desire to maintain employment in the banking system and were often drawn into troublesome loans in order to further the governments social goals. The financial institutions in India were set under the strong control of both central and state governments, and the Governments utilized these institutions foe the achievements in planning and development of the nation as a whole. The all India financial institutions can be classified under four heads according to their economic importance that are: All India Development Banks, Specialized Financial Institutions, Investment Institutions, State level Institutions.
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Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the Government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. IDBI also provides indirect financial assistance by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payments terms. IDBI has played a pioneering role, particularly in the pre-reform era (1964-91), in catalysing broad based industrial development in the country in keeping with its Government-ordained development banking charter. In pursuance of this mandate, IDBIs activities transcended the confines of pure long term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernization of specific industries, employment generation, entrepreneurship development along with support services for creating a deep and vibrant domestic capital market, including development of opposite institutional framework. In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home Finance Ltd., signalling IDBIs foray into the retail finance sector. The fully-owned housing finance subsidiary has since been renamed IDBI Home finance Limited. In view of the signal changes in the operating environment, following initiation of reforms since the early nineties, Government of India has decided to transform into commercial bank
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without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low cost current, savings bank deposits, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDBI (Transfer of undertaking and repeat) Act 2003 was passed by Parliament in December 2003. The act provides for repeal of IDBI Act, corporatisation of IDBI (with majority Government holding; current share: 53%) and transformation into a commercial bank. The provisions of the Act have come into force from July 2, 2004 in terms of a Government Notifications to this effect. The Notification facilitated, formation, incorporation and registration of Industrial Development Bank Of India Ltd., as a company under the Companies Act, 1956 and a deemed Banking Company under the Banking Regulation Act 1949 and helped in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would commence banking business being transacted under IDBI Act, 1964 from October 1, 2004, the Appointed Date notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition. On July 29, 2004, the Board of Directors of IDBI Bank accorded in principle approval to the merger of IDBI Bank with the Industrial Development Bank of India ltd., to formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeat) Act, 2003 (53 0f 2003), subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful proposition with positive implications for all stakeholders and clients, the merger process is expected to be completed during the current financial year ending March 31, 2005.

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IDBI would continue to provide the extant products and services as part of its development finance role even after its conversion into a banking company. In addition, the new entity would also provide an array of wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporate and individuals. In particular, IDBI would leverage the strong corporate relationship built up over the years to offer customised and total financial solutions for all corporate business needs, single-window appraisal for term loans and working capital finance, strategic advisory and Hand-holding support at the implementation phase of projects, among others. IDBIs transformation into a commercial bank would provide a gateway to low cost deposits like Current and Saving Bank deposits. This would have a positive impact on the Banks overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would offer various retail products, leveraging upon its existing Suvidha Flexi Bonds Schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporate and individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large retail base on the liability side.

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IDBI TODAY
The Industrial Development Bank Of India Limited commonly known by its acronym IDBI is one of the Indias leading public sector bank. It is currently the tenth largest development bank in the world. Some of the institutions built by IDBI are The National Stock Exchange of India (NSE), The National Securities Depository Services Ltd. (NSDL) and the Stock Holding Corporation of India (SHCIL) .Today, IDBI has a network of more than 720 branches, and 1210 ATMs and spread over the following: Metro: Urban: Semi urban: Rural: 213 285 148 74

VISION STATEMENTS
To be trusted partner in progress by leveraging quality human capital and setting global standards of excellence to build the most valued financial conglomerate One of the key differentiators that IDBI Bank found in Finacle universal banking solution was its new generation technology and its use of the web paradigm. With features life Straight-Through-Processing, 24*7 banking, e-Xtensibility tool kit, Finacle has indeed proved to be the right choice. With Finacle powering our core banking operations, we have been able to bring down our End of Day processing time by more than 80% Sanjay Sharma, Vice President & Head Product Development Group, IDBI bank.

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THE

BANK,

ITS

PRODUCTS

AND SERVICES
IDBI have been providing many services to its customers. It divides its services into two divisions: 1. Retailing Banking Services. 2. Corporate Banking Services. The following are the Retailing Banking Services Deposits The bank provides normal Saving Bank Accounts, Current Accounts, Fixed Deposits, and Pension Accounts. But it also provides special accounts like Suvidha plus Fixed Deposits and Sabka Accounts. Loans The bank provides various loans like: 1. Home Loans. 2. Loan against home. 3. Educational loans. 4. Personal loans. 5. Security loans. Easy Payments Bank provides its customers with a facility of easy bill payments. It provides facility of payment of tax, Stamp Duty, Easy Fill, Online Transfer, etc. Money Transfer Sending money within India has never been simple, convenient, fast and safe. IDBIs Card to Card Money Transfer facility; a first of its kind money transfer
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service in India is the absolute way to send money anywhere, anytime to any Visa Debit or Credit cardholder in India. Banks customers can now transfer money from their bank account or Visa card to any other Visa debit or credit card across the country through this service.

Saving account
1. No frills Sabka account (AQB Rs 250) 2. Basic saving account (AQB Rs 5000) Tier A cities Rs.5000 (Metro and Urban) Tier B cities Rs 2500 (Semi Urban) 3. Super Shakti womens saving account (AQB Rs 5000): Initial account Rs 1000 and AQB 5000 and free zero balance for kid account. 4. Galaxy silver saving account (AQB Rs 25000): Initial amount of Rs 25000 and 1 lakh PAP per month available. 5. Power plus saving account (AQB Rs 50000): Minimum balance of Rs 50000 or a zero balance saving account by maintaining an FD of Rs 7.5 lakhs with the bank. 6. Preferred account (AQB 75000)
7.

Royale account (AQB 100000)

General services
1. Quarterly Interest 2. Personalised chequebook 3. Pap chequebook 4. Any branch banking 5. DD and Outstation cheque collection 6. Extended banking hours and secondary banking
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7. Lockers 8. Free net banking 9. Free phone banking 10.Free mobile banking 11.Free statement by e-mail and courier 12.International debit cum ATM card.

Additional services
1. Investment advisory service 2. Demat account 3. World currency card 4. Gift card 5. Card to card money transfer.

Special services
1. Grouping of account. 2. Free sweep in facility. 3. Overdraft facility.

Current account
1. Easy access (AQB-zero) account opening 5000 2. Basic current account (AQB Rs 10000) 3. Trade plus account (AQB Rs 25000) 4. Universal account (AQB Rs 100000)
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5. Bronze current account (AQB Rs 100000) 6. Bronze plus current account (AQB Rs 100000) 7. Silver current account (AQB Rs 3 lakh) 8. Gold current account (AQB Rs 5 lath) 9. Gold plus (MAB Rs 1000000)

FACILITIES PROVIDED BY BANK

Easy Payment:Bank provides its customers with a facility of easy bill payments. It provides facility of payment of tax, Stamp Duty, Easy Fill, Online Transfer, etc. Money Transfer:Sending money within India has never been this simple, convenient, fast and safe. IDBIs Card to Card Money transfer facility, a first-of-its-kind money transfer service in India is the absolute way to send money to any money anywhere, anytime to any Visa Debit or Credit cardholder in India. Banks customers can now transfer money from their Bank account or Visa card to any other debit or credit across the country through this service. Funds can be transferred to any debit or credit card in India. Sender needs to know only the card number of the beneficiary. Can be accessed using ATM, Internet Banking or through the branch. Funds will be transferred within 2-3 working days. Cheaper, faster and more convenient than Demand Drafts, telegraphic transfers and Payable-at-par cheques. No geographical limitations within India. Beneficiary location need not be known. Payments of credit card bills.
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Transfer Funds People can now use Internet banking, ATMS or branches for transferring money across the country. The only information need to know is the 16-digit card number of the transferee. To carry out a transfer, simply log on to IDBIs Internet Banking at www.idbibank.com, or visit the nearest IDBI ATM or branch and transfer the required amount. The money is directly credited into the recipients card, no matter where he is. INVESTMENT The bank believes that all investors share a common goal, regardless of their objectives: superior and sustained returns with a tight control over risk. Meeting longterm investment goal is dependent on a number of factors: such as investment capital, expected rate of return, inflation, taxes and your investment time horizon. To meet public requirements, the bank offer investment options based on risk tolerance and return expectations. Relationship Managers are equipped to advice customers the various investment avenues after thoroughly understanding investment profile. Mutual Funds Mutual Funds offer simple and effective way to diversify investment without the hassles of tracking individual stocks on a daily basis. Capital Gain Bonds Invest your long-term capital gains on sale of your asset in the specified assets. NRI a/c Being an NRI (non-resident Indian) and privy to special benefits and privileges in India, its only but natural to expect world class levels- is it banking or any other service. The bank offer basic NRI banking products like Non Resident Rupee

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Checking Account, Non Resident Rupee Term Deposits and Foreign Currency Non Resident Deposit.

Non-Resident External (NRE) Reparable account for your investment needs access your account anytime, anywhere with Internet Banking, shop at more than 8.3 million locations and withdraw funds in 140 countries. Non-Resident Ordinary (NRO) An account for your local income and expenses, access your account at more than 250 ATMs across the country, pay your bills in India from anywhere in the world. Phone Banking At IDBI, the bank endeavour to raise the bar to meet the rising requirements of their customers, by providing quality products and services to suit varied banking needs. Their phone banking service is yet another, technology and customer centric step in that direction. IDBIs phone banking service enables customers to access authentic, instantaneous information on their account balances and transactions. The service is available totally free of cost round the clock, 365 days a year. SMS BANKING Business is on the move and so are the people who conduct it. For customers to enjoy banking convenience while on the move, IDBI is here with its SMS banking initiatives permit them to access their account and carry out various banking transactions and inquires. Account Alert
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With Account alert, customers

bank account transaction informs will be

delivered to them automatically, wherever they are. No more visiting the bank branch or ATM to check routine things like account balances, cheques clearance, verification of ATM transactions, bill payment verifications, etc. Accounts Alerts allow customer to monitor finely any type of activity on their accounts, and be notified by e-mail or cell phone SMS as and they are executed.

Gold card The card can be used transact at IDBI ATMs and 13000 VISA/Plus ATMs in India and for making purchases at 1.2 lakh visa locations. It is having international validity. The Gold card can also be used abroad to make purchases at 13 million merchant locations and withdraw local currency at 8.5 lakh Visa/ Plus ATMs. Customers can withdraw cash up to Rs 75000 and make purchases worth Rs 75000 in a day. IDBI has tied up with various merchant establishments by making purchases through the Gold Debit Card.

Debit cum credit card This card enables customers to access their IDBI Account from anywhere in the world, anytime of the day or night. It not only lets them withdraw money from any of their ATMS (Automated Teller Machines) and their associated banks ATMs, but also empowers them to shop, dine and travel without the worry of carrying cash with them all the time. Platinum debit cum atm card: With this card the customer can withdrew up to 1 lath and make purchase worth Rs 200000 per day. Gift Card The IDBI gift card allows customers loved one to purchase goods and services at over 1.8 Lac merchant establishments in India that accept Visa cards. No
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headaches of being bound to specific stores with gift vouchers. The Gift card can be used more than one giving you the flexibility to shop at will from different stores and at different times.

World Currency Card The World Currency Card is a prepaid multi currency card that provides you the convenience of making purchases and withdrawing cash while travelling almost anywhere abroad. The Card does away with the in convenience of carrying travellers cheques, is much safer than carrying foreign currency and is more economical than credit cards.

Safe Deposit The Safe Deposit locker facility offers invaluable safety for customers valuables. They also have an offer a variety of sizes to fit their requirements. The deposit lockers can be operated at their convenience during their extended banking hours. They provide the maximum safety to customers valuables that are placed in their safe Deposits lockers. For opening a locker all you have to do is: Open a saving bank account with Rs 5,000. Pay a onetime administrative charge (non-refundable) including legal fees/stamp paper charges. Pay only one years rent in advance upfront. No additional fixed deposit required.

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

February 1976: Ownership transferred to Government of India. Designated Principal Financial Institution for co-coordinating the working of institutions at national and State levels engaged in financing, promoting and developing industry.

March 1982: International Finance Division of IDBI transferred to ExportImport Bank of India, established as a wholly-owned corporation of Government of India, under an Act of Parliament.

April 1990: Set up Small Industries Development Bank of India (SIDBI) under SIDBI Act as a wholly-owned subsidiary to cater to specific needs of small-scale sector. In terms of an amendment to SIDBI Act in September 2000, IDBI divested 51% of its shareholding in SIDBI in favor of banks and other institutions in the first phase. IDBI has subsequently divested 79.13% of its stake in its erstwhile subsidiary to date.

January 1992: Accessed domestic retail debt market for the first time with innovative Deep Discount Bonds; registered path-breaking success.

December 1993: Set up IDBI Capital Market Services Ltd. as a wholly-owned subsidiary to offer a broad range of financial services, including Bond Trading, Equity Broking, Client Asset Management and Depository Services. IDBI Capital is currently a leading Primary Dealer in the country.

September 1994: Set up IDBI Bank Ltd. in association with SIDBI as a private sector commercial bank subsidiary, a sequel to RBI's policy of opening

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up domestic banking sector to private participation as part of overall financial sector reforms.

October 1994: IDBI Act amended to permit public ownership up to 49%. July 1995: Made Initial Public Offer of Equity and raised over Rs.2000 crore, thereby reducing Government stake to 72.14%.

March 2000: Entered into a JV agreement with Principal Financial Group, USA for participation in equity and management of IDBI Investment Management Company Ltd., erstwhile a 100% subsidiary. IDBI divested its entire shareholding in its asset management venture in March 2003 as part of overall corporate strategy.

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

June 2000: A part of Government shareholding converted to preference capital, since redeemed in March 2001; Government stake currently 58.47%.

August 2000: Became the first All-India Financial Institution to obtain ISO 9002:1994 Certification for its treasury operations. Also became the first organization in Indian financial sector to obtain ISO 9001:2000 Certification for its forex services.

March 2001: Set up IDBI Trusteeship Services Ltd. to provide technologydriven information and professional services to subscribers and issuers of debentures.

February 2002: Associated with select banks/institutions in setting up Asset Reconstruction Company (India) Limited (ARCIL), which will be involved with the Strategic management of non-performing and stressed assets of Financial Institutions and Banks.

September 2003: IDBI acquired the entire shareholding of Tata Finance Limited in Tata Home finance Ltd, signaling IDBI's foray into the retail finance sector. The housing finance subsidiary has since been renamed 'IDBI Home finance Limited'.

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December 2003: On December 16, 2003, the Parliament approved The Industrial Development Bank (Transfer of Undertaking and Repeal Bill) 2002 to repeal IDBI Act 1964. The President's assent for the same was obtained on December 30, 2003. The Repeal Act is aimed at bringing IDBI under the Companies Act for investing it with the requisite operational flexibility to undertake commercial banking business under the Banking Regulation Act 1949 in addition to the business carried on and transacted by it under the IDBI Act, 1964.

July 2004: The Industrial Development Bank (Transfer of Undertaking and Repeal) Act 2003 came into force from July 2, 2004.

July 2004: The Boards of IDBI and IDBI Bank Ltd. take in-principle decision regarding merger of IDBI Bank Ltd. with proposed Industrial Development Bank of India Ltd. in their respective meetings on July 29, 2004.

September 2004: The Trust Deed for Stressed Assets Stabilization Fund (SASF) executed by its Trustees on September 24, 2004 and the first meeting of the Trustees was held on September 27, 2004.

September 2004: The new entity "Industrial Development Bank of India" was incorporated on September 27, 2004 and Certificate of commencement of business was issued by the Registrar of Companies on September 28, 2004.

September 2004:Notification issued by Ministry of Finance specifying SASF as a financial institution under Section 2(h)(ii) of Recovery of Debts due to Banks & Financial Institutions Act, 1993.

September 2004:Notification issued by Ministry of Finance on September 29, 2004 for issue of non-interest bearing GoI IDBI Special Security, 2024, aggregating Rs.9000 crore, of 20-year tenure.

September 2004: Notification for appointed day as October 1, 2004, issued by Ministry of Finance on September 29, 2004.

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September 2004: RBI issues notification for inclusion of Industrial Development Bank of India Ltd. in Schedule II of RBI Act, 1934 on September 30, 2004.

October 2004: Appointed day - October 01, 2004 - Transfer of undertaking of IDBI to IDBI Ltd. IDBI Ltd. commences operations as a banking company. IDBI Act, 1964 stands repealed.

January 2005: The Board of Directors of IDBI Ltd., at its meeting held on January 20, 2005, approved the Scheme of Amalgamation, envisaging merging of IDBI Bank Ltd. with IDBI Ltd. Pursuant to the scheme approved by the Boards of both the banks, IDBI Ltd. will issue 100 equity shares for 142 equity shares held by shareholders in IDBI Bank Ltd. EGM has been convened on February 23, 2005 for seeking shareholder approval for the scheme.

December 2005: The Industrial Development Bank of India Limited opened its new data centre at Belapur in Navi Mumbai.

April 2006: BSE inducts IDBI BANK as Clearing Bank. January 2007: REL ropes in IDBI Bank for Rosa Power Project. June 2007: IDBI Bank is planning to re-enter the mutual fund business. December 2007: KURNOOL S. ANDI, Chief General Manager of IDBI Bank Limited , formally inaugurated the branch of the bank at Gowri Gopal Hospital Complex in Andhra Pradesh.

March 2008: IDBI Bank Ltd. Posted a net profit of Rs. 1,718.30 million for the First Quarter.

August 2008: IDBI Bank revives plan to sell mortgage subsidiary. IDBI Bank had valued IDBI Home Finance at Rs.351 crore, which was lowered at Rs. 333 crore in the early January.

September 2008: IDBI Bank mulls merger of home loan subsidiary. November 2008: IDBI Bank is one of the largest banks in India with assets of over 1, 30,694 Crores and deposit base of INR 72,998 crore. It is a profitable

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venture with profit before tax of INR 822 crore. These figures are for financial year 2007-2008.

April 2009: IDBI Bank Q4 net rises 28% to Rs. 314 crore. April 2009: IDBI Bank to apply to SEBI for mutual fund license. June 2009: IDBI Bank net up 8% to Rs. 172 crore. While advances increased by 25% to Rs. 97,955 crore compared with Rs. 78,115 crore at the end June 2008.

July 2009: IDBI Bank net profit rose 7.56 % to Rs. 171.83 crore in Qtr. ending June 2009 for the financial year 2008-2009 compare to Rs. 159.76 crore in quarter ending June 2008. Total operating income rose 43.33% to Rs. 3,463.30 crore in quarter ending June 2009 for the financial year 2008-2009 compared to Rs. 2,416.24 crore in Qtr. ending June2008. August 2009: IDBI Bank has announced the repayment of its 11.5% SLR Bonds, 2009 on September 26, 2009.

MAY 2010: IDBI launched its first mutual fund known as IDBI NIFTY INDEX FUND on May 3, 2010.

THEORETICAL PERSPECTIVE
Consumer behaviour is the study of when, why, how, and where people do or do not buy products. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants.

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It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization,

customization and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. MARKET SEGMENTATION Market segmentation is a concept in eco and marketing. A market segment is a sub-set of a market made up of people or organizations sharing one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function. A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention. The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts. These can broadly be viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups. While there may be theoretically 'ideal' market segments, in reality every organization engaged in a market will develop different ways of imagining market segments, and create Product differentiation strategies to exploit these segments. The market segmentation and corresponding product differentiation strategy can give a firm a temporary commercial advantage.
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TYPES OF SEGMENTATION 1. Demographic 2. Geographic 3. Physiographic 4. Behavioural

RESEARCH METHODLOGY
This is a limited study which takes into consideration the responses of 102 people. This data can be exported to take in the trends across the country. The significance for the industry lies in studying these trends that emerge from the study. It is a rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study like this attempt to guide the future of the industry based on current trends.

SAMPLING PLAN The research is primarily both exploratory as well as descriptive in nature. The sources of information are both primary and secondary. A well-structured questionnaire was prepared and personal interviews were conducted to collect the customers perception and buying behaviour, through this questionnaire. SAMPLING METHODLOGY Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research. The final Questionnaire was arrived only after certain important changes were done. Thus our sampling came out to be judgemental and continent.
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Sampling Unit: The respondents who were asked fill out the questionnaire are the sampling unit. These comprise of employees of MNC, Govt. Employees and Self Employed, business mans etc. Sample Size: The sample size was restricted to only 102, which comprised of mainly peoples from different regions GHAZIABAD. Sampling Area: The research was done in Raj Nagar, Kavi Nagar, Gandhinagar, Nayi Basti, Vijay Nagar, Model Town, Navyug Market, Sona Trade centre, and Shastri Nagar locality.

RESEARCH DESIGN Research design is a conceptual structure with research conducted. There is no unique method, which can entirely eliminate the elements of undertaking. But research methodology more than any other procedure can minimize the degree of uncertainty. Thus it reduces the probability of making a wrong choice amongst alternative courses of action.

Thus the research design implies a framework or blueprint for conducting the marketing research project. It specifies the details of the procedures necessary
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for obtaining the information needed to structure and/or solve marketing research problems. This includes within framework: Defining the information needed. Determine the phases applicable e.g. Exploratory, Descriptive or Casual. Constructing a Questionnaire. Specifying the sampling process and sample size. Developing a plan for data analysis.

This is particularly significant in the light of increasing competition & growing size, which make the task of choosing the best course of action difficult for any business enterprises. It is imperative that any type of organization in the present environment needs systematic supply of information coupled with tools of analysis for making sound decisions, which involve risk. Exploratory method of research was chosen because its helps in collecting, summarizing, analysing, interpreting, and presenting data, with new ideas & in the effective manner. For this structured questionnaire was the research instrument used for the research works. Keeping the above definitions in mind we arrived at the conclusion that our research which is directed towards finding out CONSUMER BEHAVIOUR TOWARDS IDBI BANK AND COMPETITIVE ADVANTAGES IF IDBI BANK WITH OTHER BANKS so our research was Exploratory Research

DATA COLLECTION The communication instrument has to be as versatile as possible so that it provides us with the most accurate of all information. It is an exceptionally practical way to gather opinions, knowledge and behavioural intentions. Verbal responses cannot be relied on as its essential weakness lies in the respondents refusal to accept it at a latter date. It is also possible that the respondent may
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intentionally provide false information; hence the instrument used should be such that the respondent found little scope for deviation.

As our research attempted to find out the investment alternatives available in the market and the investment pattern of the people is an Exploratory Research

We included the following type of questions: Research question Investigate question Our main objective required from the instrument designed was to help us obtain the information. DATA COLLECTION METHODS The collection of data was done both primary and secondary sources.

Primary Data: It was collected through survey conducted. The questionnaire was prepared & persons were requested to answer, they were also personally interviewed. The data collection was totally original & did not exist before. Thus the data collected was totally reliable.

Through the survey we obtained primary data from the reader through the following method Observation method Questionnaire Secondary Data:
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The data, which already exist in the nature, is called as secondary data. It provides a starting point for research & offers the advantage of low cost & ready availability. The historic literature & other information regarding the company profile & investment options available in the market were taken from secondary sources which includeso Brochures of different organizations which are providing investment alternatives o Newspapers and Magazines.

SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design may as well lay down the number of items to be included in the sample size i.e.; the size of sample. Sample design is determined before data are collected. There are many sample designs from which a researcher can choose. Some designs are relatively more precise and easier to apply than other. Researcher must select/prepare a sample design that should be reliable and appropriate for his research study. The various steps that are involved in the process of sampling design can be illustrated through the following chart.

Steps of sampling: 1. Selection of Universe:

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The first step in developing any sample design is to clearly define the set of object, to study the universe. The universe can be either finite or infinite. This is finite universe comprising of the GHAZIABAD city. All the public in the city are included in it.

2. Sample Units: A decision has to be taken concerning sampling unit before selecting the sample. There can be any sample unit but it was not possible to find out the total universe while surveying so the sample unit was confined. The sampling units include most of the Existing as well as fresh customer of GHAZIABAD city.

3. Source list: It is also known as sampling frame from which sample is to drawn. It contains the name of all items of a universe.

4. Sample Size: Sample size covered was 102 people in GHAZIABAD city.

5. Sampling Procedure: Finally the samples were taken and careful examination was done & the items for the sample were taken. It was seen that there is no systematic bias and sampling error.

We have applied the above procedure to our research, which is given as below:

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 Method used for Research : Survey Method Sampling Extent: GHAZIABAD city. Sampling Frame Distribution: Residents of GHAZIABAD. Sampling: Random. Sampling Size: 102 Data Collection Technique: Informal Interviewing & filling of questionnaires by common persons.

METHODS OF DATA COLLECTION The method of data collection is done by two ways-: 1. Primary Data and 2. Secondary Data. The primary data are those which are collected fresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand are those which have already been collected by someone else and which have already been passed through statistical process. And in our study we have done through primary data.

COLLECTION OF PRIMARY DATA We collect primary data during the course of doing experiments in an experimental research but in case we do research of the descriptive type and perform surveys, weather sample surveys or census surveys, then we can obtain primary data either through observation or through direct

communication with respondents in one form or another or through personal interviews. INTERVIEW METHOD
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The interview method of collecting data involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. This method can be used through personal interviews and, if possible through telephone interviews. (a) Personal interviews: - Personal interview method requires a person known as the interviewer asking question generally in a face-to face contact to the other person. This sort of interviews may be in the form of direct personal investigation or it may be indirect oral investigations. In the case of direct personal investigation the interviewer has to collect the information personally from the sources concerned. He has to be on the spot and has to meet people from whom data have to be collected. The method of collecting information through personal interviews is usually carried out in a structured way. As such we call the interviews as structured interviews. Such interviews involve the use of a set of predetermined questions of highly standardized techniques of recording. Some of the merits of personal interview are: Personal information can as well as be obtained easily under this method. Samples can be controlled more effectively as there arises no difficulty of the missing returns, non-response generally remains very low. (b) Telephone interviews: - This method of collecting information consists in contacting respondents on telephone itself. It is not a very widely used method, but plays important part in industrial surveys, particularly in developed regions. Some of the merits are: It is faster than other method i.e., a quick way of obtaining information. It is cheaper than personal interviewing method.
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 Replies can be recorded without causing embarrassment to respondents. Representative and wider distribution of sample is possible.

RESEARCH METHOD USED

Conclusive Research is used when the objective is clear. Descriptive Research because our purpose was to collect data for definite purpose. We have to find out behaviour of people regarding different financial products.

SIX MAJOR STEPS OF MARKETING RESEARCH PROCESS 1. IDENTIFICATION THE PROBLEM

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This step is always the first of the marketing research steps. At this point, the problem will have been recognized by at least one level of management, and internal discussions will have take plan. Sometimes, further definition of the issue or problem is needed, and for that there are several tools you can use. The most common tools are internal and external secondary research. Secondary research intelligence consists of information that was collected for another purpose, but can be useful for other purposes. Examples of internal secondary research are sales revenues, sales forecasts, customer demographics, purchase patterns, and other information that has been collected about the customer. Often referred to as data mining, this information can be critical in diagnosing the problem for further exploration and should be leveraged when available and appropriate. The amount of internal secondary information that can be applied is typically limited. External secondary research is typically far more available, especially since the internet age. Most external secondary information is produced via research conducted for other purposes, financial performance data, expert opinions and analysis, corporate executive interviews, legal proceedings, competitive intelligence firms, etc. Leading sources for external secondary research resources include: Newspaper / Magazines Articles Television Newsletters Competitive Intelligence Firms Industry Reports Trade Associations

2. DEVELOPING YOUR APPROACH

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Once your problem is better defined, you can move onto developing marketing research approach, which will generally be around a defined set of objectives. Developing your approach should consist of honestly assessing you and your teams market research skills, establishing a budget, understanding your environment and its influencing factors, developing and analysis model, and formulating hypothesis.

SKILL ANALYSIS Is there in-house market research available to meet projects needs? Is the in-house market research expertise available during the given timeframe? What parts of the market research process can be handled internally?

BUDGET ANALYSIS Is this a strategic problem/ issue or a tactical one? Where will the budget come from, and can it be shared between departments? Who are those most likely to benefit from research, and likely those most willing to fund the project? In what timeframe will budget be available?

ENVIRONMENT What is the overall economic environment? What is the economic environment relative to your products / services? What is the governmental environment (regulatory, etc.)?

BUDGET ANALYSIS Is this a strategic problem/issue or a tactical one?

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 Is it an Rs 20000 project or Rs 200000 project- what is the information worth? Where will the budget come from, and can it be shared between departments? Who are those most likely to benefit from the research, and likely those most willing to fund the project? In what timeframe will budget be available?

3. MARKET RESEARCH DESIGN Market research design is the most encompassing of all steps in the marketing research process, requiring the greatest amount of thought, time and expertise- and is the point at which those less experienced with market research will obtain assistance from an internal market research expert or perhaps partner with an external marketing research provider. Since the intelligence eventually gained from the research is so closely related to the selected marketing research design, this is the single most important step in the research process and the step most vulnerable to common marketing research errors. Marketing research design includes secondary information analysis, qualitative research, methodology selection, question measurement & scale selection, questionnaire design, sample design and size and determining data analysis to be used. Elements of Marketing Research Design include: The Questionnaire Design Process Measuring & Scaling Sampling Size Calculator Basic Statistical Testing
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 Survey Questionnaire Examples

4. COLLECTION OF DATA Marketing research data collection (often called survey field) is the point at which the finalized questionnaire (survey instrument) is used in gathering information among the chosen sample segments. There are a variety of data collection methodologies to consider. Selecting which is the most appropriate marketing research data collection methodology for a particular research project takes place during steps 2 & 3 of the marketing research process. Marketing research data collection typically begins with testing the final questionnaire with a small portion of the respondent sample to make sure it is gathering information correctly. Then data collection can be fairly automatic throughout the remainder of the marketing research data collection process. When quota groups and /or sample subgroups are being screened for, data collection will require more oversight, maintenance time and cost. Regardless of data collection process often takes from 25% to 50% of the total time needed to complete a research project.

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OBSERVATIONS

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AGE GROUP OF RESPONDENT

AGE GROUP 15-25 25-35 35-45 45-55 55-65 65-75 TOTAL AGE 14 43 22 14 6 3 102

45 40 35 30 25 20 15 10 5 0 AGE
FINDINGS

15-25 25-35 35-45 45-55 55-65 65-75

During the survey the maximum age group covered was 25-35 and the minimum age group covered was 65-75

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BANKS IN WHICH THE RESPONDENT WERE MAINTAINING THEIR ACCOUNT

BANK'S ICICI BANK SBI PNB BOI AXIS IDBI HDFC BOB OTHERS RESPONSES 16 11 18 4 7 11 12 12 25

F INDINGS: 1. Main players were ICICI Bank and PNB bank in Ghaziabad as compared to others. 2. Others (syndicate, kotak Mahindra, UBI )

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AWARENESS OF PUBLIC ABOUT IDBI BANK IN GHAZIABAD

RESPONSES
6%

YES

NO

94%

FINDINGS: According to the survey the people of Ghaziabad (nearly about 94% are aware and only 6% were not aware of IDBI Bank)

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RESPONDENTS BANK

PERCEPTION

ABOUT

IDBI

RESPONSES
17%

PRIVATE 50% 26% SEMI PRIVATE PUBLIC DONT KNOW

7%

Findings 1. Around 50% respondents felt that the Bank was private. 2. 26 % of the respondents were aware about the Bank and they knew it as a Public bank. 3. Around 17% were not able to say anything and 7 % thought that it is a semiprivate bank.

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PUBLIC EXPECTATION IN A BANK

PARAMETERS Customer service and relationship management Accessibility Variety of products and services Trusted name All

RESPONDENT 81 35 18 5 9

Findings 1. Majority of the respondents wanted good customer care and relationship management in a bank as compared to variety of products and services. 2. Only 5% of them only saw a good brand name in a bank.

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KNOWLEDGE ABOUT THE LAUNCHED NIFTY INDEX FUND

NEWLY

RESPONSES

100
50 78 24

0 YES NO

Findings 78 % respondents were not aware about the Nifty Index Fund due to lack of promotion. Only 24 % were of aware about it and these were mainly the existing customers.

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CHANNELS PREFFERED BY RESPONDENTS TO ACCESS BANK

RESPONSES

ATM'S
MOBILE/TELEBANKING ONLINE/INTERNET

50 5
24

BRANCH OFFICE

82

Findings Mainly the business mans opted branch for their transactions. And small retail investors generally opted for online/internet or ATMs as per their convenience. Very less people were interested in mobile /telebanking.

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MARKET SHARE OF IDBI BANK WITH OTHER BANK FOR NEW ACCOUNT

RESPONSES

30 25

20
15 10 5 0 IDBI SBI HDFC ICICI

PNB

AXIS

BOB

OTHERS

Findings The market share of IDBI Bank is less as compared to the other banks in Ghaziabad and the major players are ICICI Bank, HDFC Bank and PNB Bank. Generally the people were interested in ICICI Bank and PNB Bank for opening their new account.

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TRUST OF PEOPLE TOWARDS IDBI BANK IN TERMS OF SECURITY

RESPONSES
35
30

34

25 20 15 10 5
0 1 2 3

22 18 13 5 4 6

DEFINITELY NOT

DEFINITELY WILL

Findings People generally trust nationalised banks but people of Ghaziabad were not interested in IDBI bank because they thought that it was a private bank. And also many people said that the bank has not done anything (promotion and advertisement) to make them aware of it products and features and origin.

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MAXIMUM PROMOTIONAL CAMPAIGN DONE BY BANKS IN GHAZIABAD ACCORDING TO RESPONDENTS

RESPONSES

30 25

28

19
15 11 12 8 2

20
15 10 5 0

BANKS
Findings According to survey the maximum promotional activities was done by ICICI Bank, SBI and PNB as compared to IDBI, HDFC and BOB. And many of the respondents said that people from the major players visited them frequently and told about their new product or services but this activity was not done by the IDBI bank.

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ACCESSIBILITY OF BRANCH AND ATMS ACCORDING TO PUBLIC

RESPONSES
90 69
80 70 60 50 33

40
30 20 10 0

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RATING ABOUT IDBI BANK

60 40 20 0

Findings: In terms of services and customer relationship the people gave average rate to IDBI Bank.

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PEOPLE WHO HAVE SEEN PROMOTIONAL CAMPAIGN OF IDBI BANK

RESPONSES

40

YES

NO 60

Findings

60 % of the respondents had not seen any promotional campaign recently 40 % of them had seen the advertisement of IDBI but of the 40 % many of them said that IDBI should increase the frequency of the advertisement and also use other promotion techniques.

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BEST SERVICES GIVEN ACCORDING TO PUBLIC

BY

BANK

RESPONSES
30 25 20 15 15 10 5 0 SBI HDFC 3 8 16 14 29 25

RESPONSES

IDBI

PNB

ICICI

AXIS

OTHERS

Findings 1. According to the Ghaziabad public the best service was given by ICICI Bank followed by HDFC Bank and SBI. 2. Many of the respondents were not the customers of IDBI Bank, so they were not able to tell about the services offered by the bank.

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AWARENESS ABOUT THE SPECIAL PRODUCT LIKE PREFFERED AND ROYAL BANK ACCOUNTS.

Findings People were not much aware of IDBI Bank, so they were also not aware about the special product of IDBI Bank. Also among the existing customers, not everyone among them was aware of all the products of the bank. According to the data provided above only 18% were about but 86% were not aware of the products.

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AWARENESS OF ALTERNATE CHANNELS OF BANKS

RESPONSES
ALL OF THE ABOVE

PAYMATE SERVICE

SMS BANKING

INTERNET

MOBILE BANKING

10

15

20

25

30

35

40

Findings Generally the banks of Ghaziabad provided only SMS alerts, but people were also interested in other channels like mobile banking (bank on move), internet banking (mostly the business mans) and some of the peoples also wanted pay mate services by their banks. Due to constraint of time people generally not prefer to go to the branch for their transaction and they want the more convenient methods.

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COMPETITVE ADVANTAGE OF IDBI BANK WITH OTHER BANKS

A. Swot analysis B. Tows matrix C. Internal factor analysis D. External factor analysis E. Success factor analysis F. Critical success factor analysis

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SWOT ANALYSIS OF IDBI BANK

STRENGTHS WEAKNESS

1. Growing Network of more than 720 branches 2. Planned to open 200 new branches in smaller cities. 3. Customized product for every type of customers. 4. Backed by government and has the positive factor of speed, accuracy, etc. 5. It is the only bank which has 53% stake of government of India and 47% others. 6. Got grant of Rs 3119 crore from Rs 6211 crore in 5 public sector banks.

1. It has low proximity because it has only around 720 branches all over India as compared to other banks. 2. Generally, the people are not aware that it is public bank or private bank. 3. Advertisement is unable to demonstrate about the different product. 4. Frequency of advertisement is very low and thus its impact is very low on customers. 5. Branding-: While it is certainty a global company IDBI came late to the games on receding to perform an integrated marketing strategy and capitalized on its global brand.

OPPORTUNITIES

THREATS

1. It should also target low net customers and rural market more efficiently. 2. It should pay more attention on product publicity. 3. Build more interest of consumers in a product category. 4. In the global market.

1. Main threats from PSU Banks because they are imitating private banks like SBI, PNB. 2. Also it has threat from private players such as HDFC, ICICI, AXIS bank, etc. 3. Threat of new entrants such as from MNCs bank like HSBC, STANDARD CHARTERED ACCOUNTANT, YES BANK, KOTAK MAHINDRA services and products.

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TOWS MATRIX OF IDBI BANK

IFAS EFAS OPPORTUNITIES

STRENGTHS

WEAKNESS

SO- STRATEGY

WO- STRATEGY

1. It should establish its branches not in the cities but also in the rural market. 2. The new branches which are proposed to be opened should be done, paying more attention on product category. 3. It has variety of product in its basket but people are not aware of this so this hurdle should be removed with publicity. THREATS ST- STRATEGY

1. It should target low customers and rural market more efficiently because its proximity is very low. 2. With the product publicity, it should also focus that customers are aware that it is a public bank. 3. More focus should be given to make aware about the different product and frequency should be increased, so that consumers do not forget about the same. WT- STRATEGY

1. The new branches proposed to be opened should be opened should be opened where the private players are not present (this should be done by market survey). 2. Threats from the MNCs can be removed by the introduction of more customized product and better facilities.

1. As it came late in the market, its branding was low, so it should pay more and more attention on its advertisement and promotion to remain in its Cut-Throat environment.

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INTERNAL LIMITED

FACTOR

ANALYSIS

OF

IDBI

BANK

INTERNAL STRATEIGIC FACTORS

WEIGHT

RATING WEIGHTED SCORE

STRENGTHS 7. Growing Network of more than 720 branches 8. Planned to open 200 new branches in smaller cities. 9. Customized product for every type of customers. 10. Backed by government and has the positive factor of speed, accuracy, etc. 11. It is the only bank which has 53% stake of government of India and 47% others. WEAKNESSES 6. It has low proximity because it has only around 720 branches all over India as compared to other banks. 7. Generally, the people are not aware that it is public bank or private bank. 8. Advertisement is unable to demonstrate about the different product. 9. Frequency of advertisement is very low and thus its impact is very low on customers. 10. Branding-: While it is certainty a global company IDBI came late to the games on receding to perform an integrated marketing strategy and capitalized on its global brand. 1 .15 .10 .10 .05 .10 4 3.5 2.5 3 4 0.6 0.35 0.25 0.15 0.4

.15

3.5

0.525

.15 .10 .05

3 2.5 3.5

0.45 0.25 0.175

.05

.10

3.25

Outstanding 5.0 4.5

Above avg. 4.0 3.5 3.0 Average 2.5 2.0 1.5 below average 1.0 poor

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EXTERNAL FACTOR ANALYSES SUMMARY

External Factors OPPURTUNITIES 5. It should also target low net customers and rural market more efficiently. 6. It should pay more attention on product publicity. 7. Build more interest of consumers in a product category. Weight Weighted Rating Score 3.5 4 3.8 0.455 0.48 0.38

.17 .16 .15

THREATS 4. Main threats from PSU Banks because they are imitating private banks like SBI, PNB. 5. Also it has threat from private players such as HDFC, ICICI, AXIS bank, etc. 6. Threat of new entrants such as from MNCs.

.19 .16 .17

0.225 2.5 3 4 0.18 0.6

2.32

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SUCCESS FACTOR ANALYSIS OF IDBI BANK LIMITED

W RATI EI NG G HT WEI GHT ED SCO RE SH IN LONG O TE RT R M ED IA TE C O M M E N T S

STRATEGIC FACTORS

1. (S1)Planned to open 200 new branches in smaller cities. 2. (S2)Customized product for every type of customers. 3. (W1)It has low proximity because it has only around 720 branches all over India as compared to other banks. 4. (W2)Generally, the people are not aware that it is public bank or private bank. 5. (O)It should also target low net customers and rural market more efficiently. 6. (O)It should pay more attention on product publicity. 7. (T)Main threats from PSU Banks because they are imitating private banks like SBI, PNB. 8. (T)Also it has threat from private players such as HDFC, ICICI, AXIS bank, etc

.15 .10

4.0 2.5

.60 .25

.05

2.0

.1

.10 .10

3.5 4.0

.35 .40

.15 .10 .16

3.5 2.0 3.0

.525 .20 .45

2.875

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Critical success factors according to the observation

Key success Banking IDBI Weighted PNB Weighted ICICI Weighted SBI Weighted factor Sector score of score of score of score of (weight) IDBI PNB ICICI SBI Demographic factor Higher disposable income Increasing interest of the global investors Trust in terms of security Customization in terms of their product category .25 2.5 0.625 3.5 .875 3.0 .75 4.0 1

.20

2.5

0.5

3.5

0.7

3.0

.60

3.5

0.7

.10

3.0

.3

3.1

.31

3.2

.32

3.5

.35

.15

2.2

.33

0.6

3.5

.525

4.5

.675

.30

4.0

1.2

2.5

.75

3.0

0.9

2.7

.81

2.955

3.23

3.095

3.535

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COMPARATIVE STUDIES OF IDBI BANK WITH OTHER BANKS (ICICI, AXIS,HDFC, SBI BANK)

PARTICULARS NOMENCLAT URE PRODUCT COMPARABL E WITH IDBI

IDBI PREFFERED ACCOUNT

ICICI PRIVILEGE A/C

AXIS BANK PRIORITY ACCOUNT ONE

HDFC PREFFERED A/C

SBI RICH A/C RICH SAVING

TITANIUM

PREFFERED

AQB CHARGES

RS. 1 LAC FOR SAVING BANK OR 15 LAC FOR FFD/TD LINKED WITH THE ACCOUNT

MINIMUM RS 5 LAC AS TRV (TOTAL RELATIONSHIP VALUE AND RS 75000 AS AQB)

RS 1 LAC IN SAVING BANK RS 75000 IN SALARY A/C RS 5 LAC IN COMBINATION OF SAVING PLUS TERM DEPOSIT OF A/C RS 10 LAC IF LESS THAN 1 LAC TO 50000/QUARTER RS 750. IF LESS THAN 50000 THEN 1000 WILL BE CHARGED

RS 2 LAC IN SAVING RS 5 LAC IN CURRENT AVERAGE BALANCE OF 15 LAC ACROSS SAVING, CURRENT AND TD DEPOSIT A/C NIL IN THE QUARTER OF THE REGISTRATION. ONE MONTH NOTICE IS GIVEN. BEYOND THIS THE A/C IS DOWNGRADED

25000 IN SAVING AND 10000 IN MULTI OPTION DEPOSIT

CHARGES FOR NON MAINTENANC E OF AQB

NIL A/C TO BE DOWNGRADED ND ON 2 QUARTERLY DEPOSIT

RS 150 /QUARTER IF QAB IS BETWEEN 75000 TO 50000 RS 250/QUARTER IF QAB IS BETWEEN 25000 TO 10000. 750/QUARTER IF QAB FALLS BELOW 10000 WAIVED OFF ( MAX WITHDRAWL LIMIT SELF 50000/DAY, THIRD PART 15000/DAY)

RS 500 QUARTER

CASH WITHDRAWN AT NON HOME BRANCH

RS 1 LAC PER DAY GREATER THAN 1 LAC 0.325% OF THE AMOUNT WITHDRAWN IS RECOVERED AS CHARGES

RS 1 LAC/DAY GREATER THAN 1 LAC 2.5/1000 WILL BE CHARGED

CHARGEABLE, BUT WAIVER AUTHORITY OF RS 2000/ ANNUM PER CUSTOMER IS GIVEN TO THE BH

25% CONCESSION IS GIVEN IN THEIR CHARGES

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CHEQUE COLLECTION CHARGES

FREE

FREE

ONLY COURIER CHARGES ARE RECOVERED

CHARGEABLE BUT WAIVER AUTHORITY OF 2000/ANNUM IS GIVEN TO BH FREE

RECOVERY OF OUT OF POCKET EXPENSES

PAP CHEQUE BOOK LOCKER DISCOUNT

FREE

FREE

FREE

ONLY LEAVES ANNUM NO

25 PER

50% WAIVER

NO

NO

50 % WAIVER

WOMAN A/C

5000 IN TIER A 2500 IN TIER B

A/c opening charges 10000

10000 IN URBAN 7500 IN SEMI URBAN 5000 RAL RU

CURRENT A/C

-TRADE PLUS SPECIAL ------------------SILVER -----------BASIC EASY ACESS CLASSIC PREMIUM GOLD GOLD PLUS ---------------PLATINUM BUSINESS PRIVILEGE ------------CHANNEL ONE PRIVILEGE BUSINESS GLOBAL APEX ------------MAX BUSINESS ADVANTAGE ------------------BUSINESS CLASSIC -----------PREMIUM TRADE PLUS

25000 50000 100000 300000 500000 1000000 0

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FINDINGS
1. Survey was done both on existing customers as well as general public. 2. The survey revealed that most of the people of Ghaziabad were maintaining their account in ICICI Bank followed by PNB and SBI. 3. 94% people only knew the IDBI Bank by its name but they did not know whether it is a public or private Bank. 4. The survey also concluded that 50% of the respondents knowing that IDBI Bank was a private and only 26% knew it as a public Bank. 5. Some of the existing customers were also not aware that the Bank was public Bank. 6. Most of the people expected better customer service and relationship management more than the variety of the product and services offered by the banks 7. As majority of the respondents were not the customer of the bank they were unaware of the newly launched Nifty Index Fund. 8. The people of Ghaziabad opted branch for their routine transaction then alternate channels (like ATM, Mobile banking, Tele Banking, Internet). 9. Market share of IDBI Bank is less as compared to other banks in Ghaziabad and the major players are ICICI, HDFC Bank, SBI Bank, PNB Bank. 10.The people of Ghaziabad said that the maximum promotional activity was done by ICICI Bank followed by PNB and SBI. 11.Due to lack of promotional campaign the people were not aware about the bank and its products. Even the existing customers were not aware about the other products of IDBI. 12.Most of the respondents rated IDBI Bank in average category, comparing in terms of its service with other banks. 13.60% of the respondents had not seen any promotional campaign; only 40% said that they had seen the advertisement. 14.The study revealed that the majority of people of Ghaziabad mainly trusted Nationalized Bank such as PNB, SBI, and IDBI more than private players.

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RECOMMENDATIONS
1. Firstly the people should be made aware that IDBI bank is public bank, not a private bank because most of the respondent said so. 2. Also the frequency of the advertisement should also be increased, to remain in the cut throat environment and also people generally see the advertisement and compare different product of the banks and are interested in the products offered and also the bank should also sponsor some sports events which gives high impact on the mind-set of the customer. 3. The new 300 branches proposed to be opened should be opened with more customized products and also it should not only target high net worth customers. And areas like Vasundhara, Indirapuram, etc. of Ghaziabad should be targeted because there is availability of lack of banks. 4. The people think that the IDBI bank accounts opening charges are very high (for e.g., they think that if a new account can be opened with Rs 1000 than why they would spend Rs 5000. So the bank should consider in this regard. 5. More resources should be allocated in the market of Ghaziabad as there is big untapped market in Ghaziabad, so it becomes necessary for IDBI bank for taking an edge over the competitors. 6. A short advertising campaign and other local events in Ghaziabad have produced good results in a short span of times, so to gain long term benefits is very necessary for IDBI bank to carry on this campaign with more intensity. 7. As Government is the majority share holder in the shares of IDBI bank, which makes this bank more reliable than other private banks, this thing can be used in the favour of IDBI bank by making people aware about this fact and winning their faith.

8. Also the advertisement of IDBI does not reveal anything about the product of IDBI bank. So the advertisement should also contain information about the product category of the bank.

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IDBI BANK
SL NO.A Govt. of India owned Bank NAME AGE ADDRESS: CITY CONTACT NO. PIN ODE OCCUPATION SEX: MALE FEMALE

1. 2.

In which Bank are you maintaining your account? -----------------------------------------------Are you aware of IDBI BANK Limited? Yes No

3.

IDBI BANK is a Private Bank Public Bank Semi Private Dont Know

4.

What you would look for in a bank? Customer Service and Relationship Mangement Variety of product and services Accessibility (ATMs, Branch network) Trusted Name

5.

How would you rate IDBI bank? Excellent Good Not Very Good Average Poor

6.

Which channels do you use to access the IDBI bank? Branch/Office ATM Online /Internet Other Mobile/Telebanking

7.

Have you heard about the IDBI Nifty Index Fund (Mutual Fund)? Yes No

If yes mention the source of the information 8. How many products Baskets of IDBI Bank are you aware of? Super Shakti womens account Power Plus saving account Senior Citizen Account IDBI Fortis 9. Doctors Account Galaxy Silver account Super saving account IDBI Paisabuilder

If given options to choose, which bank will you opt for saving account?

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IDBI Bank SBI HDFC Reasons

ICICI bank PNB Axis Bank

10. How likely are you to recommend the IDBI Bank to a friend? (circle the number ) Definitely will not 1 2 3 definitely will 6 7

11. Which are the statements best describes your opinion towards the IDBI Bank? Easy availability of Branch and ATMs Difficulty in finding Branch and ATMs Personalized customer services & Relationship Management (Customer Care) New Generation Govt. Bank 12. Do you think IDBI Bank need more promotional activities? Yes If yes then how 13. Are you aware of alternate channels of IDBI Bank? Mobile Banking SMS Banking Pay Mate Service Internet Banking All of the Above No

14. Have you seen any promotional campaign of IDBI? Yes No

15. Are you aware of the Special products of IDBI like a) Preferred Account and b) Royale Account Yes No

16. Would you suggest any changes for IDBI Bank in the following fields? Availability Net banking Charges ATMs Customer Services & Relationship Management

17. Which Bank according to you provides best services? State Bank of India (SBI) IDBI ICICI Bank HDFC Bank PNB AXIS Bank

(Any other please Specify.)

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REFERENCES
www.idbibank.com The Economics times The Times of India www.quickmba.com Research methodology by C.R.Kothari

Thank you

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