CONCEPT OF BANKING

A bank is a place where they lend you an umbrella in fair weather and ask for it back when it beings to rain mark Twain (1835-1910). This Chapter gives a basic idea about Bank, Banking Services and Activities

WHAT IS BANK?
Bank: - An Establishment for safe keeping of money. The word Bank itself derived from Banc us or Banque that is a bench. There were others of the opinion that the word bank is originally derived from the German word back meaning joint stock for which was Italianized into bancobanco. But wherever be the origin of the word bank as Prof. Ram Chandra Rao says It would trace the history of banking in Europe from middle Ages Bank is an institution which deals in money or the credit. Its main function is to accept the deposits and giving loans. If an institution doesnt receive the despite but only leads money then it will only become leading institution and not a bank.

 WHAT IS BANKING?
Banking: - The business of providing financial
services to customers and business. The basic service- a bank provides. Checking Account which can be used like money to make payments and purchase Goods and services saving accounts and time deposits that can be used to save money for future use, loans that consumers and business can used to purchase goods and services, case management services such as check cashing and foreign currency exchange, dematerialization facilities. Banking institutions include finance companies, investment companies, pension funds, security brokers and dealers, mortgage companies and real estate investment trusts. First, by supplying customer with the basic mediums of exchange. Banks play a key role in the way goods and services are purchased, without these familiar methods of payment, goods could only be exchanged by barter (Trading one good for another) system, which is extremely time consuming and inefficient. Second, by accepting and money deposits from savers and then lending the money to borrowers, banks encourage the flow of money to productive use and investments. This intern allows the economy to grow. Without this flow saving would sit idle in someones safe or pocket, money would not be available to borrow, people would not be able to purchase cars or houses, and business would not be able to build the new factories the economy needs to produce more goods and grow. Enabling the flow of money from savers to investors is called

financial intermediation, and it is extremely important to a free market economy.

BANKING SYSTEM OF INDIA

Banking system of India consts of indigenous banks including money lenders, shroff, mahajans, sheths etc, and organized sector which includes commercial banks, exchange bank, co-operative banks, state bank of India, regional rural banks and non scheduled private Banks. The organized sector works under the guidance, supervision and direction of (RBI) Reserve Bank of India.

NATIONALIZATION OF BANKS
Nationalization of banks means the taking over by the government the ownership and management of India has Nationalized 14 major Commercial Banks With esfect from July 19, 1969. At this time these deposits aggregating Rs/-2626.2 crores accounting for 56% of the total deposits of the banking system in the country and 4168 offices comprising about 50% of the bank officers. Six other commercial banks were nationalized on April 15, 1980. Ever since then there has been a rapid growth in the banking industry. Some people as a bold and timely step by the government describe the nationalization of top 20 commercial banks.

CO-OPERATIVE BANKS

Corporative banks, another component of the India banking organization system originated in India with the enactment of the co-operative credit societies were generated owing to the increasing demand of co-operative credit. A new act of the year 1904 which provided for increasing demand of co-operative credit. A new Act passed in 1912 which provided for the establishment of a union of primary credit societies. The chief functions of these banks -Attracting deposits from non agricultures -Using access funds of some societies temporarily to make up For shortage in others -To supervise and guide the affiliated societies. Co-operative baking in India is federal in its structure. At the lower range, there are primary credit societies then there are the central unions or central co-operative banks or state cooperative banks other wise known as Apex Bank. The main function of primary societies is that of lending money to customer an easier terms. They have their own funds supplemented by funds drawn from the central co-operative banks through the banking unions where such union exists. The banking unions are federations of primary societies and they act as either coordinating unions or supervisory unions between primary societies and central co-operative banks. The cooperative banks obtain the funds from share capital deposits

loans from the apex banks and where apex banks do not exists from the Reserve bank. The Apex banks obtain their funds share capital deposits, loans from commercial banks, Reserve bank of India and Government of India.

DISTRICT CO-OPERATIVE BANKS

The main function of central banks is to finance primary credit societies, they also act as Balancing Centers making available temporary excess funds of one primary society to another which needed for then recent trends in the working of central co-operative banks, indicates about number decline, as a result of amalgamation and reorganization of central bank with the object of having one strong central bank for each district.

STATE CO-OPERATIVE BANKS

State co-operative bank means the principle society in the state which is registered or deened to be under the co operative societies Act 1912. In India relating to co-operative society and primary objective is the financing of other societies in the state which are registered. The principle function of state bank is to assist the central banks and to balance excess and deficiencies in the resources of central banks.

COMMERCIAL BANKS
Commercial banks are the Banking Company having capital in the form of shares. In India these banks have to obtain a license before the commencement of their work. In year 199495 India commercial Banking system consisted 276 scheduled

commercial banks and 4 Non public sector and these accounts for 90% of the total business of the commercial Banking system. Among the public sector banks, the state banks of India is the biggest unit with over 8830 branches and deposits of over Rs/30160 crores and advances over Rs/- 21200 crores. Apart from the main state bank there are 7 other banks associated

RESERVE BANKS OF INDIA (RBI)

Before Indian Independence R.B.I. established in 1935. R.B.I Act 1934. After Indian Independence R.B.I. established in 1949. R.B.I. Act 1948. In order to encourage co-operative banks successfully R.B.I. is endeavoring to extend number of facilities to the cooperative credit societies primary banks are required to submit. Periodical statement and to agree for the inspection of their banks.

THE PRIMARY (URBAN) CO-OPERATIVE BANKS

Commonly called urban co-operative banks are small sized co-operatively organized banking units, which operate in metro Politan, urban and semi urban center to cater the needs of small borrowers commencing from March 1, 1996 these banks

are regulated by the RBI after certain provisions of the banking regulation Act regarding matters relating to banking. R.B.I is responsible for licensing of existing new banks and branches, sanctioning of credit limit of state co-operative banks on behalf of private commercial banks for financing the small scale Industries units as well as conducting their statutory inspection 1.Structure The Indian banking system can be classified into nationalized banks, private banks and specialized banking institutions. The industry is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is the foremost monitorin g body in the Indian Financial sector. It is a centralized body that monitors discrepancies and shortcomings in the system.Banking segment in India functions under the umbrella of Reserve Bank of India (RBI) the regulatory, central bank. This segment broadly consists of: 1. Commercial Banks 2. Co-operative Banks

The commercial banking structure in India consists of: 1. Schedule Commercial Banks 2. Unscheduled Banks Schedule Commercial Banks constitute of those banks, which have included second schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub sector can broadly classified into: 1. Public Sector 2. Private Sector 3. Foreign Sector Public sector banks have either government of India Reserve Bank of India (RBI) as the majority shareholder. This segment comprises of: 1. State Bank of India (SBI) and its subsidiaries 2. Other Nationalized Banks Industry estimates indicate that out of 274 commercial banks operating in the country, 223 banks are in the public sector and 51 are in the private sector. These private sector banks include 24 foreign banks that have begub their operations here. The

specialized banking institutions that include cooperatives, rural banks, etc. form a part of the nationalized banks category. Indian Banking System:

Reserve Bank of India

Schedule Banks

Non-Schedule Banks

State co-op Banks

Commercial Banks

Central co-op Banks and Primary Cr. Societies

Commercial Banks

Indian

Foreign

Public Sector Banks

Private Sector Banks

HDFC, ICICI etc.

State Bank of India and its Subsidiaries

Other Nationalized Banks

Regional Rural Banks

Opportunities

The Banking sector is considered the most lucrative option in todays job market. In the industry, a position in Treasury or Forex is considered right on top and this is followed by careers in Private Banking, Investment Banking and Retail Banking. One could work in a variety of areas in banking industry including Recurring Deposit account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loan agent, loan manager, mortgage loan underwriter, loan processing officer, accountant, product marketing and sales executive, and customer service executive among others.In the Financial Services, some of the important jobs include that of a stockbroker who is essentially a person who buys and sells securities on behalf of individuals and institutions for some commission. While some brokers like to practice with individual clients others work for institutions. Brokers who work for institutional investors are often called

securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatations of shares as they are expected to have sound knowledge of capital markets. HDFC Bank Introduction

History of HDFC Bank The housing development Finance Corporation Limited (HDFC) was amongst the first to receive as in principal approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBIS liberalization of the Indian Banking Industry. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India.The Bank commenced operation as a scheduled Commercial Bank in January 1995 Mission, Vision and Objectives:

The mission of HDFC is to become a world class Indian bank, benchmarking themselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit and compliance. The objective is to build sound customer franchises across distinct business so as to be a preferred provider of banking services for target retail and wholesale customer segments and to achieve a healthy growth in profitability, consistence with the Banks risk appetite. HDFC Banks business objectives emphasize the following: Increase their market share in Indias expanding banking and financial services industry by following a disciplined growth strategy and delivering high quality customer service. Leverage their technology platform and open, scaleable systems to deliver more products to more customers and to control operating costs. Maintain their current high standards for asset quality through disciplined credit risk management.

 Develop innovative products and services that attract our targeted customers and address inefficiencies in the Indian financial sector. Continue to develop product and services that reduce our cost of funds, and

Bank Profile Name: Industry: BSE Code : NSE Code : Registered Office HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra - 400013 Mumbai - 400093, Maharashtra. Board of Director: S.No Name 1 Mr. Jagdish Capoor Designation Chairman / Chair Person HDFC Bank Ltd. Finance - Banks - Private Sector 500180 HDFCBANK

2 Mr. Gautam Divan Mr. Chander Mohan 3 Vasudev 4 Mr. Keki Mistry 5 Mr. Arvind Pande 6 Dr. Pandit Palande 7 Mr. Ashim Samanta 8 Mrs. Renu Karnad 9 Mr. Harish Engineer 10 Mr. Paresh Sukthankar 11 Mr. Aditya Puri Other Detail: Business Group Listings ISIN No. Incorporation Public Issue Date Promoters

Director Director Director Director Director Director Director Executive Director Executive Director Managing Director

HDFC Group BSE , NSE , NYSE INE040A01018 31/12/1994 31/12/1995

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling

units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

CapitalStructure

As on 31st March, 2009 the authorised share capital of HDFC Bank is Rs. 550 crore. The paid-up capital as on the said date is Rs. 425,38,41,090/- ( 42,53,84,109 equity shares of Rs 10/each). The HDFC Group holds 19.38% of the Bank's equity and about 17.70 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). 27.69 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 5,48,774 shareholders. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited. Distribution Network HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1412 branches spread over 528

cities across India. All branches are linked on an online realtime basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank's expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active memberbase. The Bank also has a network of about over 3295 networked ATMs across these cities. Moreover, HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. 1.Wholesale Banking Services The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporates and agri-based businesses. For these customers, the Bank provides a wide range of commercial and

transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognised as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks. 2.Retail Banking Services The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to customers through the growing branch

network, as well as through alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile Banking. The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance

at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Introduction:-

SERVICE MANAGEMENT

Service: - A system that performs work for customers or

supplies public needs.

Management: - To arrange in a systematic way.

There are four functional areas of any types of business organization -Production -Marketing -Finance -Personnel Production is the basic and core activity for most of the industrial units. All activity revolves around this activity. The finished product of the production process is the creation of goods or services, which satisfy the human desires. The

production process is nothing but step-by-step conversion of one form of material into another. In banks, they dont have production department, as there is nothing such for production. But banks product are termed as their services. Thus banks have service department. HDFC Banks main aim is to provide Maximum satisfaction to customers by providing loans or funds at reasonable rate of interest along with ones self respect. This was the conceptual basis for which HDFC Bank was established. And up till now bank has successfully provided its services and thus has rightly got the title small mans big bank. Services have four major characteristics that greatly affect the design of marketing programs.

1.INTANGIBILITY: Unlike physical products, services cannot be seen, tasted, self, heard or smalled before they are bought. To reduce uncertainty, buyers will look for evidence of the service quality. They will draw inferences about quality from the place, people, equipment, communication material, symbols and price that they see. Therefore the service providers task is to manage the evidence to tangiblize the intangible. In HDFC Bank one of the important characteristic of service management .Intangibility is shown in the following ways.

(a).PLACE:-

The exterior and interior of HDFC Bank is having a clean lines. The lay out of the desk and the traffic flow of HDFC Bank are planned carefully. Waiting lines in HDFC Bank is not getting overly long.

(b).PEOPLE:- In HDFC Bank there are sufficient number of

employees to manage the work load.

(c).EQUIPMENT:- Computers, copying machines, desks are

there in HDFC Bank and they look state of Art.

(d).COMMUNICATION MATEREIAL: -

Printed material text and photos of HDFC Bank suggest efficiency and speed.

(e).SYMBOL: - The name and symbol of HDFC Bank it self

suggest fast service providing unit.

2.INSEPARABILITY:Services are typically produced and consumed simultaneously. This is not true for physical goods. If a person renders the service. Because the client is also present as the service is produced providers client interaction is a special feature of service marketing. HDFC Bank is one of the best examples when it comes to successful interaction with its objective being to provide maximum delight ness to its clients, it observes maximum interaction with its customers.

3.VARIABILITY:Because they depend on who provides them and when and where they are provided, services are highly variables. Service firms can take three steps towards quality control.

First is investing in good hiring and training regardless whether the employees are highly skilled professionals or low skilled workers second step is standardizing the service performance process throughout the organization. HDFC Bank does it by preparing a service blue print that depicts events and processes in a flow chart with the objective of recognizing potential customer satisfaction. HDFC Banks main effort is to provide maximum satisfaction to its customer. Thus it takes various steps in relation to this matter.

4.PERISHABILITY:Service can not be stored. The perish ability of service is not a problem when demand is steady when demand fluctuates, service firms have problems. But in order to cope up the fluctuation in demand of perishable service HDFC Bank has provided some complementary services. HDFC Banks main aim is to provide Maximum Satisfaction to customers by providing loans or funds at reasonable rate of interest along with ones self respect. This was the conceptual basis, for which HDFC Bank was established, and up still now bank has successfully provided its services and thus got the title small mans big bank. In HDFC Bank following are the main service provided by the Bank. BANKING:-Savings -Special Savings -Recurring -Current

-Cash credit -Fixed deposits -Transfer of Cheque. DEPOSIT RECURRING:-Fixed -Saving -Special Saving -Recurring -Current Account ADVANCES:-Vehicle loan -Business loan -Immovable property loan -House loan -Industrial loan -Domestic loan -Education loan ADVANCES AGAINST SERVICE:-Demat securities -Stock -Purchase of domestic applications -Gold ornaments -Surety of self

MARKETING MANAGEMENT

Introduction:Marketing: - An Art of selling products / services and Ideas

with Customer satisfaction. Management: - Methodical Arrangement. Every day is different from its preceding day and to its next day. The world is changing rapidly. Globalization, advanced technology and deregulation of economic sector are developed. Therefore marketing has to meet human social needs at profitability. The marketing means the task of creating, promoting and delivering goods and services to consumers and business as per their requirements. Marketing is a Societal process by which individuals and groups obtain what they need and want through creating offering and freely exchanging products and service of value with others. HDFC Bank is a service sector organization providing satisfaction services to its customers since last 53

years.Being a Small mans big bank it has created positive impression in the minds of people. By the name its self people doesnt ask any other question and willingly ready to do the transaction with the bank. Since last 53 years bank has not taken any serious step in marketing field. Because it could achieve its objective by its positive image and reputation in the society. Looking at the globalize economy and increasing competition HDFC Bank plans to implement some effective steps in the field of marketing. Right now HDFC Bank is not having any separate marketing department but in future its plans to develop a marketing dept. in order to compete with the banking sector.

1.PRODUCT:Product Mix:It refers to the total number of products of items offered by an organization. Here in the bank the product mix includes the loans, Advances, Deposits, Creditors services, Agent type of service, etc. In short we can say that all type of service and facilities offered by the bank to customers are known as product mix. Product Line :Product line is just a type of one main product which all is similar to it. In product line all the products are some what related to each other and they are similar to one or in other way up to some extent.

Deposit
Fix

Loan
Housing loan

Agency service
Acceptance of different bills

Saving Current

Car loan Krushi loan

Acceptance of different Insurance Acceptance of different taxes

PRODUCT WIDTH:-

Product width refers to total number of product line. The line may carry one or more than one type of similar products.

PRODUCT LENGTH:Product length refers to the total number of product in product mix. It is the total number of items. The product length of HDFC Bank includes Deposit, Advances

(A) Accounts & Deposits

(1)Regular Savings Account -Pension Saving Bank Account - Family Savings Account - Savings Plus Account - SavingsMax Account - Senior Citizens Account - No Frills Account - Institutional Savings Account (2)salary account

-Payroll Salary Account - Classic Salary Account - Regular Salary Account - Premium Salary Account - Defence Salary Account - Kid's Advantage Account (3)Specific acconts for farmer - Kisan No Frills Savings Account - Kisan Club Savings Account - Plus Current Account - Trade Current Account - Premium Current Account - Regular Current Account

B. Loans (Product line)

(1) Personal Loans(product length) - Loan against Securities (product depth) - Loan against Property - Home Loans (2)Automobile loan - Two Wheeler Loans - New Car Loans - Used Car Loans - Overdraft against Car (3)Business loan - Commercial Vehicle Finance

- Working Capital Finance - Construction Equipment Finance - Offers & Deals - Customer Center

C. Investments & Insurance

- Mutual Funds - Insurance - Bonds - Financial Planning - Knowledge Centre - Equities & Derivatives - Mudra Gold Bar

D. Forex Services
- Trade Finance - Travelers Cheques - Foreign Currency Cash - Foreign Currency Drafts - Foreign Currency Cheque Deposits - Foreign Currency Remittances - Cash To Master - ForexPlus Card

E. Payment Services
- Net

Safe

- Prepaid Refill - Bill Pay

- Direct Pay - Visa Money Transfer

- One

F. Access Your Bank

View - Insta Alerts - Mobile Banking - ATM - Phone Banking - Branch Network

G. Cards

-SilverCreditCard

- Gold Credit Card

(2)Price
The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA.

(3)Place
827 Branch 3595 ATM 17 State In India

(4)Promotion
(a)Advertising:
Television Radio Movies (b)Print Media:

Hoardings

Newspaper Magazines
(c)Publicity: Campus Visits Sponsorship (d)Sales Promotion: Gifts (e)Personal Selling: Cross-Sale (Selling At Competitors Place) Personalized Service

(5)People
14000 Employee base

(6)Process

1.Standerdization : Bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. 2.Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives.

3.Number of steps: numbers of steps are usually specified and a specific pattern is followed to minimize time taken. 4.Simplicity: Banks various functions are segregated.Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further. 5.Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires

(7)Physical evidence
Pages Paperwork Brochures Furnishings Business Cards Building Signage Financial Reports Tangibles Punch Lines Employees Dress Code

PRODUCT LIFE CYCLE:-

Product life cycle is the cycle of products different types of stages. It shows the products stage position. The four different stages are.

1. INTRODUCTION STAGE:-

Introduction stage is a stage of the products. When the product or service is launched it firstly enters in this stage. Here the cost is high and revenue is not so much high as compared to cost so the profit will be very low or also negative in some cases. In this the organization will have to spend more on advertisement and publicity to make the product popular in the market. In this organization there is main one products or say service which are in introduction stage.

2. GROWTH STAGE:Growth stage is the second stage in which the services increase. Hence the revenue also increases so, overall profit will be higher than the introduction stage. Deposit services are currently in this stage. More and more deposits are collected by bank from the customers. More over advancing service is also in this stage more and more customers take the advantage of services.

3. MATURITY STAGE:Maturity stage is the stage where the service becomes constant. The profit does not have an increase or decrease. In this stage the advertisement and publicity becomes necessary just to remind the presence of the product or service to the mass. Demand draft services, bankers cheque service, etc, are in this stage. These services are provided with some nominal charges. These are services which facilitates the customer to transfer money from one city to another city.

4. DECLINE STAGE:-

Decline stage is the stage where the services will continuously decrease. So ultimately the profit will also decrease. When the service enters in this stage the organization tries to modify it makes some charges in features and relocated it in the market. Sometimes the services reenter in introduction stage. While in some cases the organization has to withdraw the product from loan facility is in the stage is due to the increase in charges. Recently customer would prefer the private sector or any other was which is safe and also cheaper. Due to the heavy Competition the number of customer using this facility is declining recently. To avoid this and recently to achieve the growth again the bank should provide better services with very competitive rate.

PROMOTION MIX:-

Advertisement: - Make Publicly Known to encourage sales.

Advertisement is any paid from of non personal presentation and promotion of ideas, goods or services by an identified sponsor. The objective of advertisement is to present and promote new ideas, for goods and services with the help of advertisement the company popularizes its products or service to the mass of consumer. Media is a channel through which the company can reach to the target audience. There are some media those medias can be used for the purpose of presentation of ideas. The selection of media must be done very carefully. So that, the objective may be achieved and if it does not happen, the time and money spend for advertisement will go waste. These are

some factors considered to decide the advertisement. These factors are as under. -The size of mass to be appealed -The budget for the advertisement -Conveniences -Availability of media.

media

of

an

One factor considered in an advertisement is budget for it. The budget should be prepared well in advance for the advertisement. The factors that are to be considered for the budget of advertisement are as under. -Maximum rich to the public -Low cost of advertisement -Geographical position -Educational level -Brand image -Selling network of product or services

SALES PROMOTION:Sales promotion consists of diverse collection of incentive tools, mostly short terms, designed to stimulate quicker or greater purchase of particular of services by

customers or the trade sales promotion offers an incentive to buy. Sales promotion tools are also achieved by the bank but not in a direct way. The bank arranges some special schemes for some special events. Bank also put some attractive deposits with schemes for some specific time, which gives much more advantage than the ordinary one. The bank sometime arranges different type of loan schemes to raise the advances with the same time bank provides some special scheme to the customer who deposits certain predetermined limits.

PUBLICITY:In this organization important to the publicity is being given. Normally it is working since 53 years and most of the customers are loyal to the organization. However the bank has established one department for public relation which arranges for sponsorship. Takes part in commercial exhibition arranged by some entrepreneur association, provides fund for welfare activities, blood donation camp, health check up camp, publishes their annual accounts in leading news papers etc. Special appointment in bank is being made for sportsmen and it gives promotions to the employee who had taken part in sports on national level basis, install extension counter on some special occasions, providing facility of loan for purchase high value item in association with dealer, car loan installs hoardings for

BRANDING:-

Brand name is a name, item, sign or symbol or combination of all these given to the product by the producers to identify the bank. The customer may ensure himself getting certain features by certain brand name so, the brand also desires some standard features.