Project

Personal loan as marketing tool in banking with specific reference to ICICI Bank
Chapter I
INTRODUCTION
Personal loan is one of the product of loans product. Its marketing in known as financial marketing. A human being want to get satisfaction in his life or expects fulfillment of basic needs (personal) or economical. This desire of the human being is more beneficial to the human being and part of the market. That is why it is the main experiment to study or analyze the every type of human being. ICICI Bank is great and good planned for their customers and others through Personal Loan. Personal loan means A loan which is provided for the fulfillment or satisfaction of the personal and economical need of customer, Personal loan is also known as unsecured loan. Personal loan is totally unsecured and it is not necessary that any property or asset assigned or mortgaged on the demand of Bank. Bank didnt want any security or guarantors or the guarantee of repayment of a loan. It is really secured less and only for the personal purpose. Thats why it is called Personal Loan or Unsecured Loan by the meaning of liability. In the banking sector Housing Development Financial Corporation Ltd. which is known as ICICI Bank had been done great achievement in the banking sector by the way of Retail Banking, Liability and also Retail Assets. In the Retail Assets by the way of all loan products ICICI Bank had been made the strong of its own roots in the marketing of the Financial Services Area. In the ICICI Bank loan products following products are important A. Home Loans, B. Personal Loans, C. Car Loans, D. Two Wheeler Loans, E. Commercial Loans, F. Consumer Loans, G. Gold Loans, H. Agricultural Loans, I. Credit Card Loans, J. Cash Credit, K. Loans Against Property, L. Loans Against Security, etc.
The above products are strong in marketing of Liability, Banking Services, and also Security. In securities 1) Life Insurance, 2) General Insurance, 3) Mutual Funds.
1.1
Marketing of Financial Services in Industries

By all accounts, service sector symbolizes the onset of the third
revolution in our modern history. The first revolution seemed to have occurred in our life in the form of the agriculture where the man learnt to use, exploit, and interact with nature (land and natural resources) for development. The revolution ended our depended or the need to kill animal for human survival and heralded the arrival of human dignity. The chief elements of the First Revolution were thus, natural resources and the human ability to exploit them. The battleground for the first revolution was the fields. The second revolution could be traced to Industrial Revolution. Here the man learnt to use, exploit, and interact with the equipments and machines for development. The industrial revolution brought in its train, benefits of production size, scale of operations, standardization, and efficiency. The battleground for the second revolution was the factory and laboratories. Service sector may well symbolize the third and possible the most romantic revolution of times. Here the main learnt to use, exploit and interact with other knowledge resources for development. The major ingredients of the service revolution are not the tangible products and sources but intangible resources like human knowledge, information and ideas. The battleground for the revolution is the human mind and the ideas factory. It marks the arrival of new growth engine that is not engineered in the open or closed factories but in minds of the people. No wonder that the service sector will be the biggest driver of the new economic growth and profit earner in the next millennium for the world as well as for India. Following things justifies the importance of service marketing:
The richest individual of the world is from a service industry (Bill Gates of the Microsoft fame in USA) if not to be left behind, the richest individual Indian too is from the service industry (Azim Premji of the WIPRO fame in India). Neither their new found ranking may nor later much in the near future. The service scrips now dominate bourses around the world including the
Personal loan as marketing tool in banking with specific reference to ICICI Bank Bombay Stock Exchange be it in the InfoTech, financial services, or franchising or event management.
The hospitality and individual escorting service. Service industries have now emerged as the first and the biggest abode of human and jobs. The world trade pattern is increasingly tilted toward services, value-added services and total solutions, another name for service industries. Emerging economics like India and China have realized their hopes from the service sector as the main sources of growth for their economy. Financial services help firms to refocus on their core competencies. This, in
turn, provides the management with an environment where among others, cost reduction and improvement is service quality can happen simultaneously. Financial services help to reduces management complexity, it enables top managers to refocus on issues, which are really important, viz., growing shareholder value, building market share protecting the bottom line, exploring and entering new markets etc. It can be used as a tool for turning strategy into delivered business results. It is only a matter of time for those financial services that fail to reduce costs, by industry standards, to fall by the wayside. Financial services are able to bring prowess in areas of reengineering, process improvements, as well as technologies, thereby eliminating unnecessary operating costs. Indias value proposition has been in terms of excellent communication skills, strong domain knowledge in finance and accounting, strong technical education base and proven capability in IT. Cost, quality and productivity have been driving the Financial services in India. Financial services encompass asset management, insurance, mortgages, and retail banking. The contact services could provide value added services cutting across these verticals. The IT-enabled services industry has grown at 70% in the last two years, a Nasscom-Mckinsey study predicts a growth of 51% p.a. over the next 5 years. India offers a strong value proposition due to the following reasons: lower manpower costs, improving telecom and IT infrastructure, fiscal incentives like tax holiday for ITES exports until 2010. Transaction-based outsourcing accounts for over 70% of the total BPO (Business Process Outsourcing) opportunity. Vertical industries like financial 3
Personal loan as marketing tool in banking with specific reference to ICICI Bank services present the largest opportunity for transaction based outsourcing. Many outsourcing vendors are expected to increasingly incorporate industry-specific solutions. Vertically focused outsourcers are able to provide a more tailored solution. Having outsourced high volume and repeatable processes the organization develops the ability to be flexible and scalable, thereby meeting customers demands and reducing the time-to-market for newer initiatives. With the traditional loyalty of financial services customers declining, winners will increasingly be those companies that woo customers with an unbeatable service proposition. BPO facilitates setting and monitoring service levels across a whole complex range of processes.
1.2
Marketing of Financial Services in Banking Sector
Personal loan as marketing tool in banking with specific reference to ICICI Bank Till fifties, Indian banks were quite conservative and inward looking, mainly concerned with their profits. As a matter of fact there was no competition in Indian banking till this period. However, after nationalization of 14 major commercial banks in 1969, banks woke up from their splendid isolation and found themselves placed in a highly competitive and rapidly changing environment, with competition from increased number of bank branches and other financial institutions. Banks approach towards customer underwent a change and the focus was gradually shifted to marketing their products. Banks became product-oriented organizations and placed before prospective customers their range of services. At the same time, banks also became conscious of their corporate images and its projection. The banks picked up the word marketing, using it as synonymous with selling. Though banks were talking of marketing, they were actually selling. The State Bank of India initiated the first major stage in the field of marketing in 1972 when it re-organized itself on the basis of activities. Four major segments were created, viz., small industries and small business, agriculture, commercial and institutional personal services. However, during that period very few other banks in India could structure their services in line with marketing concept. In recent years, Indian banks have urged their branches to adopt more and more marketing techniques for achieving their business goals; customers needs have been made the focal point of attention by banks. The growing competition in the banking sector, both within India and outside, has made it imperative for them to adopt various marketing strategies to gain competitive edge In terms of best ever orientation, the banks have taken steps to simplify the banks procedures so as to facilitate easy availability of loans and quick deposit mobilization, to provide quick and accurate services. The computerizations of services is being restored, to keeping in view the customer needs the banks have started providing many new services like travelers cheques, merchant banking, bid bounds, professional guarantees so on and so forth.
1.3
Changes in Banks functioning in recent years
Personal loan as marketing tool in banking with specific reference to ICICI Bank 1.3.1 Emergence of New Customer Services and Schemes:
After nationalization of commercial banks it was the general feeling that the
customer services of commercial banks have been constantly deteriorating and this fact was admitted even by the Reserve Bank of India when it appointed Talwar committee to look into this aspect. RBI has really compelled them to introduce the spirit of marketing in their planning process. The bank services are for customers. categories. Business (a) Corporate: 1 2 3 4 5 Manufacturers Importers Traders Exporters Service organizations and others. This means that planning of bank
services has to be services. Some banks have classified the customers in three broad
(b)
Small Business: 1. Other small industrialists 2. Entrepreneurs involved in services activities 3. Like repair shops 4. Retailers and other
Individual 1 2 3 Professionals Executives (serving or retired) House wives and other
Rural 1. Progressive farmers 2. Marginal farmers 3. Artisans 4. Landless laborers and other This classification has rather forced the banks to review their earlier philosophy of Buy what we have to sell which makes the customer irrelevant to the bank. Consequently, new services and schemes have emerged over recent years. An idea of the expansion of these services is given in the Table 1. Thus, special branches have been opened in different localities of big cities with non-traditional business hours and days. Commercial banks have also been liberally opening extension counters especially for the convenience of customers like students, patients etc. Similarly creation of specialized branches like merchant banking branch, foreign exchange branch, financial branch etc., have been possible Bank Baroda has set up a separate marketing division and has launched a periodical new horizon to inculcate the marketing feel among its staff. Beside this, the employees at all levels are being trained to become more customers friendly despite the fact that the branch manager is the pivot of the banks marketing. Idea about services by Banks as per Category of Customers can be made clear by the following tableCategory Of Customer 1.Leasing 2.Merchant Banking 3.Factoring Services 1.Mutual Funds 2.Credit cards 1.Agriculture credit cards 2.Instant overdraft Business Individuals Rural
3. Special deposit 3.Equipment credits saving 4.Co-oprative credits
schemes 4.Venture Capital 4. Tax schemes
Personal loan as marketing tool in banking with specific reference to ICICI Bank 5.Package women entrepreneurs Table 1.1 Customers Category-wise Services by Banks for 5. Housing Finance 5.Mobile Facility bank
1.3.2 Procedure Changes and Up gradation of Technology by Banks: Marketing orientation to the functioning of banks has necessitated procedural changes. For the satisfaction of customer needs, banks systems and procedures may sometime have to be bent rather than customer being bent to follow the banks procedures. In this process, many banks have enhanced the loaning powers of their officials. Many banks have created manual review section to bring about Some banks have obliged their simplifications in their systems and procedures. issuing at the main-branch only. In marketing of personalized services like that of commercial banks, timing factor plays a significant role. The time lost may loose customer. To increase the speed as well as accuracy for the benefit of customers, banks have started upgrading their technology. Computerization, which on one hand lowers the burden of banks staff, on the other, saves the time of the customers and provides more accurate services. Banks have also started using satellite earth stations for improving transmission of customer remittances. It is introduced even in smaller cities with smaller branches. 1.3.3 Lack of Professional Approach To Customer Services: Of late, there has been a feeling that some banks are, on account of various factors, not having improvement in their business levels. One of the reasons can certainly be the lack of professional approach to customer services. Improvement of banks business will follow from the improvement of customer services and not the other way round. functioning of banks. This requires the adoption of a marketing approach in the
customers by making their pay order payable at par at all its branches instead of
Personal loan as marketing tool in banking with specific reference to ICICI Bank 1.3.4 Public Relations And Promoting Of Bank Services: For attracting new clients, banks have practiced advertising. They have also been engaging themselves in other promotional activities. However, as a study conducted by National Institute of Bank Management has indicated, the promotion of bank services has not been done properly. Advertisement campaigns are also not adequate. Personal contacts too are inadequate. The result is that there is low awareness of various bank deposit schemes among the households. 1.3.5 Employees Training And Motivation: In marketing of services the employees of the organization coming into contract with the people plays a major role. Thus, in a bank the counter clerks, cashiers, branch managers, etc. are the persons whose behavior is a determining factor in attracting peoples to the bank. Their training and motivation, therefore, are of utmost importance in marketing of bank premises. The training of bank employees received a lot of attention during post-independence era. The number of bank staff training institutions has grown up and the number of employees trained by them has increased manifold. However, the training seems to have been faulty. It has been basically urban oriented and is fit spread of class banking. The rural area has been ignored and the tilt towards the mass banking has not received that attention which it deserves. It is true that over the past few decades banks have tried to be sensitive to their customers needs and aspirations. However, all is not well with the Indian banks. Their profitability is low. Rather they incur losses. This might be due to weakness is various fields. In marketing also, their functioning cannot be said to be ideal.
1.4
Banking In 21st Century

Banking is as old as Civilization itself. India evolved and worked the
principles of banking prior to the Western countries. In the Kautilya Arthasastra, there are detailed guidelines regarding treasury keeping, cash as credit policies, rate of the interest and so on. The present structure of the banking in India is the outcome of the long process of expansion, re-organization, and consolidation.
Personal loan as marketing tool in banking with specific reference to ICICI Bank With a view to harnessing all the available resources for the development of the country, reserve bank of India was nationalized with effect from January 1, 1949. The imperial Bank of India was nationalized and State Bank of India was formed in 1956. In February 1969 the banks were brought under social with the objectives of achieving a wide disposal of bank credit, preventing its misuse, directing its flow to priority areas and making it a more effectives instrument of economics development. On 19 July 1969, 14 major commercial banks were nationalized. Again in 1980, six large private sector commercial banks were nationalized. The nationalized was done with the objectives of reduction of contraction of wealth in a few hands, identifying banks operations with the national policy reduction of inequalities and removal of poverty; meeting the needs of priority and neglected sectors; reduction of regional imbalance and soon. During these twenty years the commercial banks made remarkable progress in term of geographical expansion, explosive growth in the business and functional diversification in complex and challenging areas all directed towards converting the banking system in to an effective instrument of socio-economic change in consonance with national priority and objectives. The number of commercial bank branches in the country has registered phenomenal increase from 8262 in 1969 to 56960 in March 1989. There has been quantum jump in aggregate deposits from 4646 crores in 1969 to 146890 crores in March 1989. There has been large shift in the development of credit in favor of priority sectors, weaker and unprivileged sections of the society, which has in past been ignored by the banking system. The focus of the Indian banking in recent years has shifted from class banking to mass banking, from elite.
1.5
Recent Trends In Commercial Banking India

The Indian economy is developing fast under the impact of planning.
Important changes that have taken pace in Indian commercial banks are as follows:
1.
Planned economic development and deficit financing have led to increase in
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Personal loan as marketing tool in banking with specific reference to ICICI Bank bank deposits. Bank deposits have
increased from Rs. 820 Crores in 1950-51 to 2,80,692 Crores during 1993-94 (according to the report on Currency and Finance: RBI). Along with the expansion of bank deposits there has been a continued expansion of credit. Now the banks are meeting credit requirements of industry, trade, and agriculture on a much larger scale than before. 2. In recent years, the concept of banking has widened from acceptance of deposits and loaning of funds to development-oriented banking. From short-term financing, banks have been gradually shifting to medium and longterm loans, for the purpose of development and expansion. After Bank Nationalization in 1969, advances to industrial sector have declined to 49 percent. By 1991-92 industrial advances constituted 43 percent, agriculture and allied activities accounted for 17 percent; and commercial advantages 21 percent of the total advantage of commercial bank. 3. There has been an introduction of new functions of commercial banks in India. Currently commercial banks have started under-writing of few issues especially preference shares and debentures. The RBI has also suggested the banks, the introduction of the credit transfer scheme on the lines of the scheme recently introduced in U.K. 4. There has been rapid branch banking as a result of rapid economic development Between 1969-92 the number of bank offices in country has increased from 8,200 to 55,400. There are about more than 30,000 villages, which have the bank branches. 5. Previously, commercial banks have owned and controlled by a few persons which further led to concentration of wealth and economic power in the hands of few. 11
Personal loan as marketing tool in banking with specific reference to ICICI Bank These persons indulged in hoarding black marketing and failed to achieve, the social objectives of various five year plans. There was a strong demand for the nationalization of commercial banks. The Government of India, first introduced social control on banks, while the social control measures were being implemented. Government of India nationalized top 14 banks and in 1980, the Government of India nationalized six more banks.
1.6
Recruitment, Training and Motivation of Employees

In the marketing of services employees of the organization are considered an
important asset. Their recruitment, training and motivation, therefore, are important aspect of service marketing. Indian banks, over the years, have followed faculty recruitment policy. As a result, most of the commercial banks have in their cadres personal who are urban oriented, lacking proper vision and understanding and application of various problems of countryside in their proper perspective. The major banks in India set up their colleges in the fifties and sixties. In the post-nationalization period, banks gave serious thought to training. In the context of shift from class banking to mass banking, the emphasis was on the member training and the number of training programs are conducted. However, service-training needs were mostly assessed based on the impression of a few individuals entrusted with the task. The training programs were eventually impressionistic, unfocussed and at times not relevant. The India banks have introduced specialized financial services such as merchant banking, mutual funds, factoring , venture capital, hire purchase etc. there has been a shift from non-price competition resulting in new dimension of bank management, extensive delegation of powers with in the banks has also all taken place. Banks has started paying role in the rural socio-development also all this requires rigorous training of bank employees. The investment in training facilities has got stepped up. Service orientation by the banking industry required both cognitive training and attitudinal training. A. Cognitive Training:
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Personal loan as marketing tool in banking with specific reference to ICICI Bank Cognitive training would facilitate providing knowledge and skill inputs. Efforts should be made through well planned training improves the preparedness of their employees to meet the challenge and understand and appreciate the growing needs and expectations of the customers. The banks should supplements the institutional training on the job training and by shifting the place of training from classroom to work situations. The bank have already taken a number of productive measures in this regard in the form visiting facility schemes of the State Banks of India, on site interventions, distance learning etc. More of such techniques could be employed like branch adoption by trainers, roving instructor, on the job training etc. B. Attitudinal Training: While emphasis is on job knowledge and skills inputs is important, the real important aspect of training is bring about an attitudinal orientation. The crucial question is how best can these inputs be administrated and what could be appropriate method for imparting this cognitive training. Changes in attitudes of banks employees is a must and the training system of bank should gear them to tackle this task and a substantial part of institutional training capacity must be earmarked for this. As regard appropriate training methodology, a blend of following techniques can be used: Role play. Management game. Sensitive training (or T group) simulation. OD intervention. In basket exercises. In the Indian banks special benefits are given for outstanding performance. Because of the awards and Pillai committee Rules there cannot be special increments, and out of turn promotions for outstanding performance. Awards govern clerks in Indian Banks. Officers are governed by Pillai Committee rules. Unions and associations question any deviation to favors an outstanding performer. In such situation, every one gets all benefits even for below average work. The sermons given by training colleges of banks have never been effective in motivating the employees.
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Personal loan as marketing tool in banking with specific reference to ICICI Bank With all this banks still do whatever is possible to motivate their employees. Thus appreciation letters are given for outstanding work in canvassing deposits, recovery of overdue, tally of accounts etc. Some banks periodically issue the circulars highlighting the achievements of their employees. In the circulars the names of the employees are also given. The house magazines of the banks also devote a page or two to the staff achievements. The idea is to motivated the employees. However. Nothing to succeed in this regard and the productivity ratio is coming down. Serious efforts need to be put in this regard. Bank marketing aiming at improving clients needs to be developed. Excellent customer rapport should be developed and service area approach should be adopted inculcating sensitivity among employees and concern towards customers problems. Customer-care culture adopt to attract the customers and providing the services to their satisfaction.
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1.7 Suggestion for Marketing Orientation

1.7.1 Need For Market Survey Banks Which Provided Personal Loan: To appreciate public expectations from banks where there is need of constantly updating the understanding of the nature and size of the market needs, preference and motivations of the customers. As such banks should make detailed market surveys at regular intervals. Under competitive conditions prevailing for banking in India, Market survey should not only imply to survey of customers and their expectations but also strength and weakness of the customers. 1.7.2 Need For Increased Quality Of Service: In the absence of price competition in commercial banks, marketing of banks services to a great extent is influenced by Quality Of Services. The quality in this context differs, from banks to banks on account of knowledge, attitude approach and motivation of the bank officials. All of them thus, have to be necessarily oriented towards business development and customer satisfaction. 1.7.3 Need For Innovation In Schemes: Innovation is the magic word for survival and progress. Commercial banks of late have realized it and have come out with new nontraditional schemes. But still there is scope for tailoring or fine-tuning of services to meet the needs of various market segments. One can seriously think about the non-fund based financial services by the banks. 1.7.4 Need For Promotional Strategies And Training Of Branch Managers: The key of successful bank marketing would of course, depend not only on the promotional strategies and marketing efforts as planed at the corporate level but also largely on how branch managers are trained inspired and motivated to be effective marketers themselves and how they do in turn, involve all their team members in the business development efforts of the banks. For any marketing strategy to succeed at the grassroots have to be involved.
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1.8 Promotion of Personal Loan Product Services In Bank

The National Institute of Bank Management has recently conducted a study on Saving and Deposit trends and patterns of households and institutions in India. This study bring to the for the fact that personal product schemes have not effectively reached the illiterate section of population as well as working class. There is inadequate of marketing efforts in term of personal contacts. The study has also drawn attention to the low awareness of personal loan schemes among the households. The definitely points to the fact that promotion of bank services has not been done properly. Advertising camping, as now enough. Personal selling of schemes with the household sector is essential. Even in the case of mobilizing deposits of non-resident Indians, personal selling can prove beneficial.
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Chapter II
FINANCIAL MARKETING OF THE LOAN PRODUCT IN ICICI BANK

Housing Development Financial Corporation Limited means ICICI bank. It is one of the Asian bank for the banking and financial services. Mr. Husmukhbhai Parekh is the founder as well as chairman of the ICICI. It is established in the November 18, 1994 in India. Mr. Aditya Puri is the Managing Director of ICICI bank.
2.1 Historical Review of ICICI Bank

Focus On Man With a Mission If ever there was a man with a mission it was Hasmukhbhai Parekh, ICICI Founder and Chairman-Emeritus, who left this earthly abode on November 18, 1994. Born in a traditional banking family in Surat, Gujarat, Mr. Parekh started his financial career at Harkisandass Lukhmidass a leading stock broking firm. The firm closed down in the late seventies, but, long before that, he went on to become a towering figure on the Indian financial scene. In 1956 he began his lifelong financial affair with the economic world, as General Manager of the newly-formed Industrial Credit and Investment Corporation of India (ICICI). He rose to become Chairman and continued so till his retirement in 1972. At the ripe age of 60, Hasmukhbhai started his second dynamic life, even more illustrious than his first. His vision for mortgage finance for housing, gave birth to the Housing Development Finance Corporation it was a trend-setter for housing finance in the whole Asian continent. He was a true development banker. His building up ICICI without any government assistance is itself a brilliant chapter in financial history. His wisdom and warmth drew people from all walks of life to him, for advice, guidance and inspiration. A soft-spoken man of few words, Mr. Parekh nevertheless held strong and definite views with a quiet conviction. He was always concerned with building bridges, improving and encouraging communication between people.
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Personal loan as marketing tool in banking with specific reference to ICICI Bank He was also a writer in his own right. There are over 200 published articles by him, full of incisive comments on finance and economics. In 1953 he brought out a volume called: The Bombay Money Market. It detailed the intricate working of the Indian money market. His works in Gujarati Hirane Patro, Hirane Vadhu Patro occupy pride of place in Gujarati literature. In 1992, the Government of India honored him with the Padma Bhushan Award. The London School of Economics & Political Science conferred on him an Honorary Fellowship. But there was much more to the man than his financial genius. In his own unassuming way, Hasmukhbhai devoted all his life to raising resources for philanthropic causes. He was one of the Founder Members of the Center for Advancement of Philanthropy, and its Chairman till 1993. He took active interest in the Bombay Community Public Trust, designed specifically to serve the needs of the citys underprivileged citizens. When Mr. Deepak Parekh took over as Chairman from Hasmukhbhai, he said: Taking over from H.T. Parekh is a formidable task; his vision brought about not only an institution, but an entire concept which has proved itself to be of lasting importance. In his last years, developments in the financial sector brought him some measure of satisfaction. Says ICICI Chairman, N. Vaghul: The most gratifying aspect about his life is that values he cherished all his life, came into reality in the last years opening up the financial sector, and deregulation of lending rates were issues he stood for all his life, and this happened before he passed away. Farewell dear Hasmukhbhai! All of us will miss not only H.T. Parekh the financial wizard, but much more so, the man. The only and best tribute we can pay to such an individual is to try and follow in his footsteps, keeping in mind his high ideals and philanthropic outlook. Organizational Goals ICICIs main goals are to a) develop close relationships with individual households, b) maintain its position as the premier housing finance institution in the country, c) transform ideas into viable and creative solutions, d) provide consistently high returns to shareholders, and e) to grow through diversification by leveraging off the existing client base.
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Personal loan as marketing tool in banking with specific reference to ICICI Bank ICICI has always been market-oriented and dynamic with respect to resource mobilization as well as its lending programmed. This renders it more than capable to meet the new challenges that have emerged. Over the years, ICICI has developed a vast client base of borrowers, depositors, shareholders and agents, and it hopes to capitalize on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take into account changes in the volatile external environment. ICICI has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialized financial services. Each institution is being fine-tuned for a specific market, while offering the entire ICICI customer base the highest standards of quality in product design, facilities and service.
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Status of ICICI Bank As Per Balance Sheet Balance Sheet as at MARCH 31, 2005 Rs. in Crores FUNDS EMPLOYED SHAREHOLDER FUNDS Share Capital Reserves and Surplus 249.12 3633.98 3883.10 LOAN FUNDS Term Loans Bonds, Debentures, FRN and Commercial Paper* Deposits 16689.68 12117.63 7840.09 36647.40 40530.50 APPLICATION OF FUNDS LOAN Individuals Corporate Bodies Others 24259.09 11162.24 590.17 36011.50 INVESTMENTS DEFERRED TAX ASSET CURRENT ASSETS, LOAN & ADVANCES Less : CURRENT LIABILITIES & PROVISIONS 3130.04 69.38 2982.13 1957.40 637.98 1024.73 19158.74 8489.02 326.51 27974.27 2973.37 54.58 2396.45 1758.47 12294.17 7052.22 9337.65 28684.04 32077.83 246.61 3147.18 339379 March 31, 2005 March 31, 2004
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Balance Sheet as at JUNE 30, 2006 Rs. In Cores FUNDS EMPLIYED SHAREHOLDER FUNDS Share Capital Reserves and Surplus LOAN FUNDS Term Loans Bonds, Debentures, FRN and Commercial Paper* Deposits APPLICATION OF FUNDS LOANS Individuals Corporate Bodies Others INVESTMENTS DIFFERED TAX ASSETS CURRENT ASSETS, LOAN & ADVANCES Less: CURRENT LIABILITIES AND PROVISIONS FIXED ASSETS 32,036.77 14,438.79 797.81 47,273.37 3,796.46 98.89 4,529.10 2,315.13 2,213.97 246.56 53,629.65 25,965.03 11,385.74 637.30 37,988.07 2,717.37 79.02 3,534.54 1,915.49 1,619.05 287.51 42,691.02 19,348.28 18,833.93 10,716.41 48,898.62 53,629.65 16,901.84 14,533.18 7,136.39 38,571.41 42,691.02 249.56 4,481.47 4,731.03 4,119.61 249.12 3,870.49 30-June-06 30-June-05
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2.2
2.2.1
Problem of Marketing of financial Services

Bankers Point of view: exaggerated out of proportions. 2. The behavior of banks the customer is highly objectionable. He behaves like a king or a super boss. He is bully by and large. 3. Customers do not know the rules and regulations and insist on doing the wrong things, e.g., withdrawing money without a passbook. 4. Customers want us to be highly efficient but would not mind tolerating inefficiency in other sectors, e.g., Hospitals, Insurance, Universities, Railways, etc. 5. The customers do not know the constraints under which we are working, e.g., less manpower, political pressures, unions and indiscipline of the Indian society, which has naturally become a part of banking culture as well.
1. The problems of customer services (or customers satisfaction) have been
2.2.2
Customers Point of view: Customers thinks that, it is our money. But for us bank would not be there.
ROI from banks is legible as compared to other agencies i.e. therefore; expect bank to provide us with something else in return services. Questions Rose in Mind of Customers and their Expectations are asAs a customer, we have our ego- please satisfy it. What are we asking for? Courtesy, a helpful relationship. Are we asking for too much? The small depositor does not get the importance he deserves. Borrowers do. Is it not antithesis? We compare- your service with other banks (usually the foreign banks) and come to the unfortunate conclusion that their services are better. We never compare ourselves with those who are below us, that is human nature.
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Personal loan as marketing tool in banking with specific reference to ICICI Bank Banks might be bothered about the customer services but they do not make any efforts to show it. Good feeling should not be remain should not be fair, it must appear to be fair as well. So please help, be with us (do not ignore), at least appear to be friendly (even you are not.) The bank does not, the face on it present an aesthetics appearance as far as work culture is concerned. Rude exchange with customers (and of even ruder with the manager perhaps) and openly boasting with colleagues their tabs of misbehavior with the managers. May be, we are wrong? May be that we have been blaming you for our own faults (our ignorance) but have you tried to educate us? We, somehow, feel that while services charges have been going up, quality of services provided is going down, e.g., the paper of the FDR, the conditions of the notes given to us, the folders for FDRs, etc. 2.2.3 Why Customer is Important? a) Customer has the choice for investing his money. b) Returns on his investment are much higher in other sectors of the economy, e.g., private sector. c) Money market is becoming highly competitive, in fact, the customer is being provided with higher rates of return. d) Bank money may be most liquid, but liquidity is not a big problem elsewhere as well. e) The argument of security does not appeal to the customer so safe investment elsewhere as well.
2.2.4
What Solution the Bank can Offer?
The answer is easy access and better customer service. Better customer service means
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Personal loan as marketing tool in banking with specific reference to ICICI Bank Creating a feeling of belongingness in the customers. The customers consider bank as a member of extended Family. The transaction between the bank and the customer is adult, business like transactions and personal relations are OK if not excellent. These are the dynamic aspects of service concept according to the author. As far as service demanded by the customers are concerned (such as opening an account, For termination and transfer of accounts etc.) bank have to think of: a. System for a particular activity. b. Time taken for perform them. c. Cutting the corners wherever necessary. d. Simplifying work. e. Setting time parameters for each activity. f. Implementing if effectively. It is a last element with is most important and perhaps has to be strictly adhered to.
2.3 Personal Loan : need of human being

Exact meaning of personal loan Any bank provide a loan which is provided for the fulfillment or satisfaction of the personal and economical need of customer it is also known as unsecured loan. its called as Personal Loan. Which is totally unsecured and it is not necessary that any property or asset assigned or mortgaged on the demand of Bank. Bank didnt want any security or guarantors for the guarantee of repayment of a loan. It is really secured less and only for the personal purpose. Thats why it is called Personal Loan or Unsecured Loan by the meaning of liability. It is a one of the product of loans product, which is a personal loan. Its marketing in known as financial marketing which is the one of the human being who are include in survival thing in nature and want to do satisfaction or fulfillment of basic needs (personal) or economical need. It is more beneficial to the human being and part of the market. That is why it is the main experiment to study or analysis for the every type of human being.
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2.4 Importance of Financial Marketing in ICICI Bank

A very simple definition of Marketing Management, Management about the satisfaction of wants or needs of human being by the available resources is called Marketing Management. Means marketing is only combination of human wants or needs and available resources by the own convenience. We can take the loan products (Banks retail assets) for the marketing of financial services. So we take the Personal loan which is best example of retail assets of bank. Providing loan product facility is asset for bank. Personal Loan is having its own features and benefits. Those areFeatures & Benefits Borrow up to Rs 10,00,000 for any purpose depending on your requirements Flexible Repayment options, ranging from 12 to 48 months. Repay with easy EMIs. One of the lowest interest rates. /se Hassle free loans - No guarantor security/collateral required Speedy loan approval. Convenience of service at your doorstep. Customer privileges

If you are an ICICI Bank account holder, we have special rates for you. If you are an existing Auto Loan customer with a clear repayment of 12 months or more from any of our approved financiers or us, you can get a hassle free personal loan (without income documentation). If you are an existing ICICI Bank Personal Loan customer with a clear repayment of 12 months or more, we can Top-Up your personal loan.
A dream vacation? Son's admission to a medical college? Daughter's wedding? Whatever the occasion, our range of Personal Loans can help. The procedure is simple, documentation is minimal and approval is quick. Borrow up to Rs 10,00,000 for any purpose depending on your
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Personal loan as marketing tool in banking with specific reference to ICICI Bank Flexible Repayment options, ranging from 12 to 48 months. Repay with easy EMIs. One of the lowest interest rates. Hassle free loans - No guarantor/security/collateral required. Speedy loan approval. Convenience of service at your doorstep. Customer privileges If you are an ICICI Bank account holder, we have special rates for you. If you are an existing Auto Loan customer with a clear repayment of 12 months or more from any of our approved financiers or us, you can get a hassle free personal loan (without income documentation). If you are an existing ICICI Bank Personal Loan customer with a clear repayment of 12 months or more, we can Top-Up your personal loan. Eligibility & Documentation Salaried Individuals include Salaried Doctors, CAs, employees of select Public and Private limited companies, Government Sector employees including public sector undertakings and central, state and local bodies: Eligibility Criteria

Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 60 years Minimum employment: Minimum 2 years in employment and minimum 1 year in the current organization Minimum Net Monthly Income: Rs. 7,000 p.m (Rs. 6,000 in select cities) Documents required: Proof of Identity (Passport Copy/ Voters ID card/ Driving License) Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate) Bank Statements (latest 3 months bank statement / 6 months bank passbook) Latest salary slip or current dated salary certificate with latest Form 16
Self employed (Professionals) include self - employed Doctors, Chartered Accountants, Engineers, MBA Consultants, Architects, Company Secretaries. 27
Eligibility Criteria

Minimum age of Applicant: 25 years Maximum age of Applicant at loan maturity: 65 years Years in business: Minimum 3 years in current business and 5 years total business experience Minimum Annual Income:
Rs 60000 p.a. taxable income for Doctors and CAs Rs 100,000 p.a. taxable income for Engineers, MBA Consultants, Architects, CS. Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving License). Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate). Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Qualification proof of the highest professional degree in the Business of Manufacturing, Trading or Services.
Self Employed (Individuals) include self-employed - Sole proprietors, Partners & Directors
Eligibility Criteria

Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years Years in business: 5 yrs continuous business experience Minimum Annual Income: Rs. 1,00,000 p.a. Available in select cities Proof of Identity (Passport Copy/ Voters ID card/ Driving License) Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate) Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA 28
Documents required:


Proof of continuation (Trade license /Establishment /Sales Tax certificate) Other Mandatory Documents(Sole Prop. Decl. Or Cert. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)
Self Employed (Pvt Cos and Partnership Firms) include Private Companies and Partnership firms in the Business of Manufacturing, Trading or Services Eligibility Criteria
Years in business: Minimum of 3 years in current business and 5 years total business experience Business must be profit making for the last 2 years Minimum Annual Income: Rs 100000 p.a. Available in select cities Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade license /Est./Sales Tax certificate) Bank Statements(latest 6 months bank statement /passbook) Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA Proof of continuation (Trade license /Establishment /Sales Tax certificate) Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original).)
Documents required:
2.5 Efforts made by the ICICI Bank

ICICI bank made the various schemes for providing their financial services by the marketing. Selection of sales team Bank made the sales team for the achievement of their goals or target in exchanging of attractive salary package, incentives and allowances. Add campaigns Bank did the add campaign by the various media i.e., print media, electronic media, etc.
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Telephone Calling Bank did the marketing by the telephone calling for making new customer and providing their financial services.
2.6 Personal Loan As A Financial Marketing

Banking financial services is also known as marketing of financial product or services. It played the direct role in the banking sector. Retail assets of banking sector means loan product services also played the important role in the marketing of banking services. Marketing of banking services have the wide nature than financial services marketing. Personal loan is best to study in between other loan product only because it has no need of reason to do procedure of sanctioning loan. Means If any person want to take Home Loans Necessary documents are property document + income document (sale deed, sanctioning map, etc.) If any person want to take Vehicle Loans Necessary documents are vehicle document + income document
(Quotation, receipt of down payment, etc.) If any person want to take Loans Against Security Necessary documents are Security receipt document + income document
(Mutual fund receipt, policy of life insurance, Bonds, etc.) But in the case of personal loan any Bank, financial institution or company did not want any reason or security because it is really unsecured loan. Only income document and banking transaction statement sufficient filling case and sufficient for the loan procedure. Necessary documents for the personal loan case
1.
Application Form (Sample standard application is attached in Appendix II ) 30
Personal loan as marketing tool in banking with specific reference to ICICI Bank 2. Income Proof 3. Banking Statement (Salary A/c, Saving A/C, Current A/C, etc.) 4. Residential Proof. 5. Identity Proof. Are sufficient for the sanctioning of Personal Loan case. Nature of personal loan It is a one of the product of loans product, which is a personal loan. Its marketing in known as financial marketing which is the one of the human being who are include in survival thing in nature and want to do satisfaction or fulfillment of basic needs (personal) or economical need. It is more beneficial to the human being and part of the market.
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Personal loan as marketing tool in banking with specific reference to ICICI Bank What is the personal loan? Personal loan means a loan which is provided for the fulfillment or satisfaction of the personal and economical need of customer, Personal loan is also known as unsecured loan. Personal loan is totally unsecured and it is not necessary that any property or asset assigned or mortgaged on the demand of Bank. Personal loan is the best example of retail assets of bank. Providing loan product facility is the asset for bank because it can be give best return in form of interest is gain for the bank. Any type of people wants money or fund for the utilization of their personal needs. They wants the loan for increment of business, home renovation, purchasing, traveling, marriage, childs education etc. personal purpose. There were two types of personal loans 1) High Ticket Personal Loan. 2) Small Ticket Personal Loan. 1) High Ticket Personal Loan. This personal loan having a high ticket size means It can be provided from 25000/- to 1500000/- and its documents is more stronger than small ticket personal loan per necessity. 2) Small Ticket Personal Loan. This personal having a small ticket size means It can provided from 10000/- to 75000/- Rs. only. And its documents are more flexible than high ticket personal loan as per necessity. Features and Criteria Both loans features and criteria stated in the chapter 2.4 importance Of Financial Marketing in the ICICI bank broadly.
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Personal loan as marketing tool in banking with specific reference to ICICI Bank Loan procedure 1. Direct approach with customer 2. Application form fill up by customer. 3. Collection of documents. 4. Login. 5. Contact point Verification/ First Investigation. 6. Customer Discussion. 7. Approval/sanctioning process by credit. 8. Approved/sanctioned the case. 9. Customer agreement with bank with essential PDC. 10. Disbursement. 11. Issuing the cheque of amount to the customer. Agreement with bank by customer After making a sanctioning process, bank demanded the essential PDC and agreement form the customer for the credit relationship.( Sample of loan agreement is attached in Appendix-III ) Agreement is undertaken in the 1. The Companies act,1956. 2. Negotiable Instrument act, 1881. It is necessary for the bank only because of rule regulation of RBI for the caring about dispute between customer and bank.
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Chapter III
PERSONAL LOAN OF THE ICICI BANK IN AKOLA CITY

3.1 Brief Profile of Akola City:
Akola, a district place at the heart of Maharashtra. The city has educational, religious, cultural, political importance. The city has educational, cultural, religious and political importance. The city possessed a many sided personality of a village, a town and also a progressive city. Talking about its educational importance, one can study almost all the varieties in science. The city give rise to competent doctors, engineers, architects, advocates, teachers and so on. That means it is an important educational center of the side field Dr. Panjabrao Deshmukh Krishi Vidyapeeth (P.D.K.V.) is also of utmost attraction which gives out brilliant agriculturists. The historical significance of the city begins with the great and well-known temple of lord Shiva, named Shree Rajrajshwara Temple with historic Asadgarh fort with it. The city is also remarkable on the geographical map for it is situated on the national highway of Mumbai to Kolkata. It is also major railway junction that one can travel anywhere all over the country form the city. Through hidden the city also has a small airport, which comes under commercial and frequent use very soon. In respect of entertainment the city is embellished with 7 movie theatres, which are also a comfort to the people. Besides there are some parks to give objective entertainment. In politics, the city seethe with cultured and educated people so the political movements in the city may affect the politics of the state. What more evidence is needed then the Akola district is divided into Akola and Washim districts regarding the growing and swelling development face of the district? Akola district, an important part of the Marathwada region, is located in east-central part of state of Maharastra. The district lies between 19o51 and 21o16 North latitudes and 76o30, and 77o44
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Personal loan as marketing tool in banking with specific reference to ICICI Bank The district is bounded by Amravati district on the North and North east. Yavatnal district is to the east and south east; Parbhani district to the south and Buldhana district on the west. (Location map enclosed.) Akola town falls Mumbai - Howrath board gauge railway line and also on Kachiguda - Ajmer meter gauge line. Murtizapur, an important taluka place also an important railway junction joining Achalpur and Yavatnal by narrow gauge line. The major towns of Akot, Murtizapur, Karanja, and Washim are joined by railway. Economical Occupational, social and Educational Profile Of the Population: The total geographical area of the district is 10560Km2, which is 3.34% of the total of the state. The population of the district (provisional figures) is 29.11lakhs, which is 2.8% of the population of the state. The rural population constitutes 71.32% of the total population while 28.68% of the population is resides in city. The womenfolk form 45.45% of the population and the male population forms 51.55% of it. The density of population is highest in Akola tahsil with 505 persons/ Km2 followed by Telhara with 226 persons/ Km2. the lengths of National and state highways in the district are 100km and 1090km, respectively, while the length of the railway line is 354km. VARIOUS BANKS IN AKOLA CITY Nationalized Bank State Bank Of India, Punjab National Bank, Syndicate Bank Central Bank Of India etc. Public Sector Bank Bank of Maharashtra Indian Bank etc. The Janta Commercial Co-op. Bank Ltd. The Washim Urban Co-op. Bank Ltd. The Buldhana Urban Co-op. Bank Ltd. etc. ICICI Bank, Bank Of Rajastan Commercial Bank The Akola Urban Co-op. Bank Ltd.
Private Limited Bank ICICI Bank
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Personal loan as marketing tool in banking with specific reference to ICICI Bank Various Loan Provider Financial Institute In Akola City 1. City Financial 2. G.E. Money Finance 3. Sundrum Finance 4. Indusland Finance 5. Shriram Finance 6. Centurion Finance 7. Federal Credit Of India Ltd. 8. India bulls
3.2 ICICI banks relationship with Akola City:

Today banking sector is very broad sector in the world. So many nationalized, commercial, Public Ltd. and Private Ltd. banks are giving various type of banking as well as financial Services to the customer. These are banks done the marketing of financial services on the top gear properly. Housing Development Financial Corporation Limited means ICICI bank. It is one of the Asian bank for the banking and financial services. Mr. Husmukhbhai Parekh is the founder as well as chairman of the ICICI. It is established in the November 18, 1994 in India. Mr. Aditya Puri is the Managing Director of ICICI bank. Second one head quarter located in Nagpur. ICICI bank also located in Akola City in Vidarbha region. In Akola ICICI bank is located at --- Zilha Parishad road, Near collector office, New Radhkisan Plot, Akola 444001. Bank is located in heart of city. It is only one main branch in the Akola City but sufficient for the banking and customer providing services. There were various types of product run by the ICICI bank in Akola city. These are : Retail Banking Banking Customer Services Net Banking Phone Banking Direct Banking Cash Credit
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Liability Saving Account Current Account Fixed Deposit
Retail Assets - Home Loans,

- Personal Loans, - Car Loans, - Two Wheeler Loans, - Commercial Loans, - Consumer Loans, - Gold Loans, - Agricultural Loans, - Credit Card Loans, - Cash Credit, - Loans Against Property, - Loans Against Security, etc. Brokerage Demat Account Online Shear Trading Securities - Life Insurance, General Insurance, Mutual Funds.
In Akola city ICICI bank started from beginning of 21st century in 2002. The product of retail asset means Loan Products that totally used for personal purpose also started form 2002. Personal and other Loan Products are made the marketing of financial services in ICICI Bank. Its made the great achievement in marketing of financial services by product of Loans product and also made the achievement and banking services to customer. ICICI Bank had been made the terrific growth in the product sale of personal loan other than personal loan provider banks. In the sale of personal loan productNationalized Bank, Public Sector Bank,
37
Personal loan as marketing tool in banking with specific reference to ICICI Bank Commercial Bank,
- Private Limited Bank, Participated honestly but one of the ICICI Bank had been made terrific growth in product sale of Personal Loan Product. It can be understand by the below given diagram5% 2%
Market Sale in %
HDFC Bank
23%
ICICI Bank
41%
SBI Bank Of Maharastra The Akola Urban Bank
29%
Source:- Working team data of march 2007. From the above diagram it can be cleared that ICICI Bank made the 41% sale of market for the Personal Loan product, ICICI Bank made the 29% sale of the market for Personal Loan product, State Bank of India made the 23% sale of the market for Personal Loan product, Bank of Maharashtra & The Akola Urban co-op bank Ltd. made the sequence 5% & 2% sale of market for Personal Loan product. Means, Personal Loan of ICICI Bank made the terrific growth in capturing of market for the sale of Personal Loan product.
Chapter IV
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RESEARCH METHODOLOGY
4.1 Introduction
Research methodology is away to systematically solve the research problem. It is in fact study to know the research is done scientifically. Researcher is not only required to know how it is done and its various techniques but also why it is done and which of these techniques is relevant for what kind of research and what it indicates and so on. Thus when we talk of research methodology, we not only talk of research methods but also consider the logic behind the methods, we use in the context of our research study. This helps in our study and explains why we are using particular technique or method and why we are not using other techniques. This helps considerably in the evaluation of research results either by the researcher himself or by any other person. Research in the management is broadly a systematic activity directed towards investing managerial business problems and solutions along with invention and discovery of management tools for problems solving and decision-making. Steps involved in research process are as follows: 1. Formula Tion Of Problem. 2. Extensive Literature Survey. 3. Formulation Of Hypothesis. 4. Prearing Research Design. 5. Prearing Sample Design. 6. Data Collection. 7. Analysis Of Data. 8. Generalzation & Interpretation Of Research. 9. Prepration Of Report Or Thesis.
4.2 Research Process

4.2.1 Problem Formulation:
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Personal loan as marketing tool in banking with specific reference to ICICI Bank A research problem in general refers to some difficulty, which a research experience in the context of either theoretical or practical situations and want s to obtain a solution for the same. 4.2.2. Research Design: Fundamental to the success of any formal marketing research project is research design. Research design is framework or plane for study used as guide in collection and analyzing data. There are mainly three types of research design. i) Exploratory research ii) Descriptive research iii) Casual research The research adopted for the purpose of this study was an exploratory type of research design. It was tested in the city of Akola. 4.2.3. Data Collection Method: In broader sense, we can say that two type of data methods are available to researcher. a) Primary data: The data is primary if it is basic in nature and is collected through any of the following methods. i) Questionnaire: both structured and unstructured ii) Interview techniques iii) Personal interviews iv) Observations techniques b) Secondary data:
The data, which is collected form some earlier research work and applicable or can be used in the study, researcher has presently undertaken. In this study both data collection methods are used. Primary data has been collected by survey method using self-administered structural questionnaires. This questionnaire was administered to limited no of respondents, selected form the universe. This method was used because it enjoys the advantages of both economy and speed secondary data has been collected form various magazines, newspapers and most important of all web sites. 40
4.2.4. Sample Design: Regardless of method used to obtain primary data, the researcher has to decide whether the information is to be obtained for every unit of the population under the study or only form a selected no. of population of the universe. The latter approach, where only a few units of universe is selected for study, is known as sampling method. In this project the sampling method applied was that of convenience sampling. This method particularly was selected, as it was the best method of sample designing. This in turn was a non-probabilistic sampling. a) Questionnaires designing: A questionnaire designing is an art and not a science. The following steps explain the questionnaire design process. i) Specify information to be sought. ii) Determine type of question to be asked and method of its administration. iii) Determine content of each question. iv) Determine the format of responses to each question. v) Determine wording of each question. vi) Determine sequence of questions. vii) Determine physical characteristics of questionnaire. viii) Re-examining the questionnaire. A sample questionnaire designed for collection of data is attached in Appendix-I b) Sample Size: The sample size is taken up for the research was of 100 respondents and convincing method of non-probability sampling was used. 4.2.5 Data Processing:
In order to extract meaningful information the data collected, the processing has to be done. The data was first edited, coded and tabulated for the purpose of its analysis. The editing, coding & tabulating is must when the interviewer has amassed a huge amount of data concerning the research study at hand. 41
4.2.6
Data Analysis:
For the analysis of the data various tools were used which facilitated the process of data analysis. The tools used in the processing of data were average sum-totals and percentage methods. 4.2.7 Interpretation & Generalization: The interpretation done on the basis of above analysis of the data has been summarized in the chapter 5 of the study.
4.3 Objectives for the study:

Marketing strategy plays crucial role in the financial services. In this context topic selected entitled Personal Loans as a Financial Marketing in Loans Product, has great relevance to solve the problems of marketing of financial services. This research has been carried out to fulfill the following objectives i. ii. iii. market. iv. v. vi. vii. viii. To provide the guideline for the new entrants services. To understand the meaning and need of financial marketing by the way of Personal Loan. To explain the actual process of Personal Loan. To identify the features of the Personal Loan. To identify the eligibility and criteria of the Personal Loan. To study the various attributes, customers desire in services. To find out the loopholes in existing services. to find out the major customers classes & hence coverage of the
4.4 Scope
This study has included marketing of financial services of ICICI bank in Akola. This study exemplifies and highlights the success achieved by marketing of loan products which is known as financial services products in banking sector. The general procedure of all loan products sanctioning as per personal loan of ICICI bank. This
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Personal loan as marketing tool in banking with specific reference to ICICI Bank study focuses on the various aspects of financial marketing offered by personal loan product. So the scope of this study up to some extent is limited to Akola city. This study focuses only on one loan product which is personal loan not other than product . The result obtained through this study will be only applicable to Akola city only. The scope of this study can be understand in the answer of following questions; 1) 2) 3) 4) 5) answers. Why it is done by the investigator? Why it is essential to studied by the analyzer? How it is beneficial for the part of financial market? Is it made the changes in market? When it is gave the actual satisfaction?
These questions are gave the explanation about the scope of the study by the actual
4.5 Limitations
There are few difficulties that were to be faced and obstacles to be crossed during the course of the study, which were worth considerable as limitation of the study. 1. 2. 3. Some of the respondents were unable to fill up the questionnaire provided If manager is in hurry hence we could not get current figures, so he gave Some of the respondent had language problem and thus were unable to to them because they had time problem hence they couldnt be included in study. his rough idea, which increase the percentage of error in our result. understand the given questionnaire & thus they were explained accordingly & the question get filled. 4. 5. The study is time bound so it may not possible to go up to required depth. The result will be true only for the Akola city.
It was seen that same of the questionnaire were filled with irrelevant data & thus it was a difficult task for the researcher to make suitable assumptions & strain out the irrelevant data by something meaningful. That questionnaire is skipped not used for analysis purpose.
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Chapter V
ANALYSIS AND EVALUATION
Analysis means the computation of certain induces and measures along with the search for pattern of relationship that exists among the data groups. Analysis, particularly in the case of survey or experimental data, involves estimating of the unknown parameters of the population and forming suitable relationship among the various factors for drawing inferences. Data analysis is of number of types but for this study researcher using simple arithmetic and statistical tools such as average, sum percentage and other similar techniques. The objectives of the study were to assess the reaction and opinions of the respondents about personal loans. This study tries to evaluate Personal Loans as a financial marketing in the loans product of ICICI Bank by forming suitable relationship among the various factors have been grouped together in order to get some meaningful results from the related factors.
Sr. No.
Option
Respondent %
45
Personal loan as marketing tool in banking with specific reference to ICICI Bank 1 2 3 Yes No Something 67 12 21
Table T5.1: Showing awareness about personal loans
Respondent % 100
Sample Of size
80 60 40 20 0
Yes No Something
Responden t%
Response Of Respondent
Graph G5.1: Showing awareness about personal loans The above table and graph shows that 67% Respondents knowing about Personal Loan, 21% respondents knowing something about Personal Loan and 12% respondents dont have any idea about Personal Loan. That means maximum number of respondents are aware about Personal Loan.
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Sr. No.
1 2 3 4 5 6
Name Of Bank ICICI BANK ICICI BANK BANK OF RAJASTHAN SBI PNB BANK OF MAHARASHTRA
Respondents % 52 22 08 10 04 04
Table T5.2: Showing awareness about banks providing personal loan
100 80 60 40 20 0 Respondents %
HDFC BANK ICICI BANK BANK OF RAJASTHAN SBI PNB BANK OF MAHARASHTRA
Graph G5.2: Showing awareness about banks providing personal loan
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From the above table and graph it is clear that major respondents knows about ICICI
Bank and ICICI Bank which provide Personal Loan i.e. 52% and 22% where as the least popular banks which provide personal loan are PNB and Bank of Maharashtra whose awareness percentage is only 3 and 2 respectively.
Sr. No. 1 2 3
Option Yes No Something
Respondents % 67 16 17
Table T5.3: Showing awareness about Bank Procedure for Personal loan
Something 17%
Respondents %
No 16%
Yes No Something
Yes 67%
Graph G5.3: The above table and graph shows that 67% Respondents knowing about Bank Personal Loan Procedure, 17% respondents knowing something about Bank Personal Loan Procedure and 16% respondents dont have any idea about Bank Personal Loan Procedure. That means maximum number of respondents are aware about Bank Personal Loan Procedure. 48
Sr. No. 1 2 3 4 5
No. of Times One Time Two Times Three Times More Than Three Times None of Times
Respondents % 58 14 10 06 12
Table T5.4: Showing number of times respondents have used the loan facility
Respondents %
12% 6% 10% 58% 14% One Time Two Times Three Times More Than Three Times None of Times
Graph G5.4: Showing number of times respondents have used the loan facility
From the above table and graph it is clear that major respondents used the Personal
Loan facility once and twice i.e. 58% and 14% where as the more than three times and none of times personal loan facility user are percentage is only 10 and 12 respectively.
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Sr. No. 1 2 3 4 5 6 7 8
Name
Of
Bank/Financial Respondents % 52 21 07 09 03 03 03 02
Insinuation ICICI BANK ICICI BANK BANK OF RAJASTAN STATE BANK OF INDIA PUNJAB NATIONAL BANK BANK OF MAHARASHTRA CITY FINANCIAL G.E. MONEY FINANCE
Table T5.5: Showing percentage respondents using the Personal loan of various
Bank
100 90 80 70 60 50 40 30 20 10 0 Respondents %
HDFC BANK ICICI BANK BANK OF RAJASTAN STATE BANK OF INDIA PUNJAB NATIONAL BANK BANK OF MAHARASHTRA CITY FINANCIAL G.E. MONEY FINANCE
Graph G5.5 Showing percentage respondents using the Personal loan of various
Bank
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Loan of ICICI Bank and ICICI Bank i.e. 52% and 21% where as personal loan of PNB and Bank of Maharashtra whose user percentage is only 3 and 3 respectively.
Sr. No. 1 2 3
Satisfaction Yes No Neutral
Respondent % 72 15 13
Table T5.6. Showing Customer Satisfaction about the personal loan
Respondent % 100 80 60 40 20 0 Yes No Neutral Opinion of Respondents Sample Size
Respondent %
Graph G5.6. Showing Customer Satisfaction about the personal loan The above table and graph shows that 72% Respondents fully satisfied from Personal Loan, 13% respondents neutralized about Personal Loan and 15% respondents not satisfied from the Personal Loan. That means maximum number of respondents are satisfied from Personal Loan.
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Sr. No. 01 02 03 04 05 06 07 08
Purpose Business Marriage Home Renovation Education Traveling Purchasing Medical Expenses Others
Respondents (%) 32 07 22 11 03 08 15 02
Table T5.7: Showing the purpose for which the personal loan is utilized
Respondents (%)
15% 8% 3% 11%
2% 32%
7% 22%
Business Marriage Home Renovation Education Traveling Purchasing Medical Expenses Others
Graph G5.7: Showing the purpose for which the personal loan is utilized
Loan for the purpose of Business, Home Renovation and Medical Expenses i.e. 32%, 22% and 15% where as remaining respondents used the personal loan for Purpose of Purchasing, Traveling, Marriage, Education and other respectively.
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Sr. No. 1 2
Respondent Opinion Positive Negative
Bank Sector Private 45 08
Government 35 12
Table T5.8: Showing satisfaction about facilities of Government and Private banks
100 90 80 70 60 50 40 30 20 10 0
Positive Negative
Private Bank Sector
Government
Graph G5.8: Showing satisfaction about facilities of Government and Private banks
From the above table and graph it is clear that major respondents are positive and
Negative Opinion about Private Banks i.e. 45% and 08% where as positive and Negative Opinion about the Govt. Banks percentage is only 35% and 12% from respondents respectively.
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Sr. No. 1 2 3 4 5 6
Respondents % 18 14 07 58 02 03
Types of advertisement Add campaign Telecalling T.V. channels Sales Team Direct Approach Existing Customer
Table T5.9. Showing source of awareness about ICICIs personal loan
3% 2%
Respondents %
18%
Add campaign Telecalling
14% 56%
T.V. channels Sales Team Direct Approach Existing Customer
7%
Graph G5.9. Showing source of awareness about ICICIs personal loan

From the above table and graph it is clear that major respondents are aware about the
Personal Loan of ICICI Bank from Sales Team, Add Campaign and Tele Calling, i.e. 56%, 18% and 14% where as remaining respondents are aware from the T.V. Channels, Direct Approach and Existing Customer respectively.
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Sr. No. 1 2 3
Process Lengthy Easy Necessary Time Consuming
Respondents (%) 18 63 19
Table T5.10 Showing Customers Opinion about the Procedure of ICICI Banks Personal Loan.
Respondents (%)
100 90 80 70 60 50 40 30 20 10 0 Lengthy Easy Necessary Time Consuming
Sample Size
Respondents (%)
G Graph G5.10: Showing Customers Opinion about the Procedure of ICICI
Banks Personal Loan. The above table and graph shows that 63% Respondents are giving Positive opinion about ICICI Banks Personal Loan Procedure (Easy), 18% Respondents are giving Negative opinion about ICICI Banks Personal Loan Procedure (Lengthy), 19% Respondents are giving opinion about ICICI Banks Personal Loan Procedure is Necessary Time Consuming.
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Sr. No. 1 2 3 4 Total Table T5.11:
Dissatisfaction
Factors Rate of Processing 12 fee Rate of Interest 29 Wrong commitment 19 Lengthy Process 10 70 Showing Percentage of
Loan Procedure Other banks
ICICI Bank 08 09 06 07 30
Respondents
about
Factors
of
Dissatisfaction
100 Sample Size 80 60 40 20 0

Rate of Processing fee Rate of Interest Wrong commitment Lengthy Process
Loan Procedure Other banks Loan Procedure HDFC Bank
Graph G5.11: Showing Percentage of Respondents about Factors of Dissatisfaction

From the above table and graph it is clear that major respondents are dissatisfied from
other banks for the Rate of P.F., Rate of Interest, Wrong Commitment & Lengthy
56
Personal loan as marketing tool in banking with specific reference to ICICI Bank Process i.e. 12%, 29%, 19% and 10% where as remaining respondents percentages 08%, 09%, 06% & 07% are Dissatisfied from the ICICI Bank for the same factor.
Sr. No. 1 2 3
Option Yes No Hard to Say
Respondents % 68 14 18
Table T5.12: Showing satisfaction about interest rate of ICICI bank in comparison with other banks
Respondents %
100 Sample Size 80 60 40 20 0

Yes No Hard to Say
Respondents %
Graph G5.12:
Showing satisfaction about interest rate of ICICI bank in
comparison with other banks
57
From the above table and graph it is clear that 68% respondents are Satisfied from the
interest rate of
ICICI Bank in comparison with other banks, 18% respondents
neutralized about interest rate of ICICI Bank in comparison with other banks, 14% respondents are not satisfied from the interest rate of ICICI Bank in comparison with other banks.
Sr.
Schemes/offers
No. 1 Concession in processing 14 2 3 4 Total fee Relaxation in any EMI Cut of Interest Rate Special offer as lucky draw 09 18 10 51
Respondents Yes
Total No 07 10 15 17 49 21 19 33 27 100
Table T5.13: Showing use of different schemes used by the respondents from ICICI Bank
100 Sample Size 80 60 40 20 0

Concession Relaxation in Cut of Special offer in processing any EMI Interest Rate as lucky draw fee
Respondents Yes Respondents No
Response of Respondents
Graph G5.13: Showing use of different schemes used by the respondents from
58
Personal loan as marketing tool in banking with specific reference to ICICI Bank ICICI Bank
From the above table and graph it is clear that major respondents are used the schemes
or offer from ICICI Bank which schemes are Concession in processing fee, Relaxation in any EMI, Cut of Interest Rate, Special offer as lucky draw, i.e. 14%, 09%, 18% and 10% where as remaining respondents percentages 07%, 10%, 15%, & 17% are not used same Scheme or offer from the ICICI Bank.
59
Chapter VI
CONCLUSION & SUGGESTIONS 6.1 Conclusion

The Different Conclusion Drawn after This Survey are as below: Most of the respondents are vary much aware about personal loans provided by ICICI. (Table T5.1 & Table T5.2)
From the table T5.4 it is clear that customers are using the loan facility very
frequently & 6% customers used this facility for more than three times. ICICI bank is the number 1 bank is providing personal loan facility and second one is the ICICI bank (Table T5.5) Satisfaction about the personal loan of ICICI bank is very high (Table T5.6) Customer are now become very much aware about the personal loan facility provided by ICICI and customers are taking this loan for the purpose like marriage, education, medical, and trading also (Table T5.7) Customers are much satisfied by personal personal loan facility given by privet sector than govt. one (Table T5.8) The important outcome of this study, it is work of the company sales team to get more for company than any other tool of advertising the loan sachems. (Table T5.9) As far as the dissatisfaction is concern of 30% are dissatisfied with ROI, 27% are dissatisfied with rate of processing fee & 24 % are dissatisfied with process of something the loan (Table T5.11)
60
Personal loan as marketing tool in banking with specific reference to ICICI Bank Most of the respondents i.e.33% prefers cut of interest rate schemes .The second preference is given to special offers and the lowest demanded scheme is relaxation in EMI. (Table T5.13)
6.2 Suggestions
1. It is also suggested that same constructive steps should be taken so that marketing should not the outdated form the finance product. 2. Any thing if it used positively, it results sweetly so though it is marketing product of finance product, both services should be looked at with a positive eye. 3. It can also be a suggestion that marketing should not be differ from finance product because of financial services wants marketing for the achievement their goals and target. 4. As far as advertises through social service is concerned some important social activities provided by ICICI Bank are I) Plantation, II) Drinking water facility, III) Blood donation camp, IV) Eye care camp etc. are liked by customers. The frequency should be increased respondents. The study has been concluded with limited resources and was not exhaustive these limitations compel me to suggest that there is a need for more advanced study that could come to a precise conclusion. is suggested by many
BIBLIOGRAPHY
Books: 1. Marketing of Services
61
Personal loan as marketing tool in banking with specific reference to ICICI Bank - Bindhi Chand 2. 3. 4. 5. Management of Financial Services - B. L. Mathur Strategic Marketing of Banking Services - Kumar L. M. Marketing of Banking Services - Seth, Rajiv K. Research Methodology - Dr. TVS Arun Murthy. - Dr. D. G. Wakde. Website: ICICI Bank (www.ICICI.com) ICICI Bank Booklets Policy Document of Personal Loan of ICICI Bank. The report on Currency and Finance: RBI
62
Questionnaire
Dear Respondent, I am conducting a survey on Personal Loans as a Financial Marketing in the loans product of ICICI Bank, a study of Akola City. Administration & Research, S.S.G. M.C.E., Shegoan. I kindly request you to fill up the following questionnaire and cooperate me, for bringing grand success. Rushikesh Vijay Sabde M.B.A. (Finance) Details of the Respondent Name of the Respondent: - ______________________________________ Profession: - __________________________________________________ Address: - ____________________________________________________ Age: - ________________________________________________________ It is a part of my academic requirement, which is carried under the Department of Business
1) Do you know about Personal Loan? a) Yes, b) No, c) Something.
2) Which Banks do you know those provide Personal Loan? a) ICICI, d) SBI, b) HDFC, e) PNB, c) Bank of Rajastan, f) Bank of Maharashtra.
3) Do you know about Personal Loan Procedure? a) Yes, b) No, c) Something.
4) How many times do you used Personal Loan facilities in your life?
63
Personal loan as marketing tool in banking with specific reference to ICICI Bank a) One time, d) So many times, b) Two times, c) Three times, e) None of times.
5) Which Banks or Financial Companys Personal Loan you have used? a) ICICI, d) SBI, b) HDFC, e) PNB, c) Bank of Rajastan, f) Bank of Maharashtra, h) G E Money.
g) City Finance,
6) Are you satisfied from the Personal Loan facility? a) Yes, b) No, c) Constant about it.
7) Are you really Satisfied from the Personal Loan facility? a) Yes, b) No, c) Neutral.
8) What do you think, that your economical problem really solved by the Personal Loan? a) Yes, b) No, c) Some problems.
9) For which purpose do you used the Personal Loan facility? a) Business, b) Marriage, c) Home enervation, d) Education, e) Traveling, f) purchasing, g) Medical expenses, h) others.
10) Which bank did you give easy facility to provide a Personal Loan? a) ICICI, d) SBI, b) ICICI, e) PNB, c) Bank of Rajastan, f) Bank of Maharashtra.
64
11)
Which Sector bank gave you better facility?
a) Govt. sector bank, b) Private sector bank, c) Public sector bank.
12) Is it provided category profile on a) Business, b) Profession, c) Private job, d) Govt. service.
13) From which way do you know about ICICI Bank Personal Loan? a) Add campaign, b) Tele calling, c) TV channel, d) Sales team, e) Direct approach, f) Existing Customer.
14) On which Criteria it is depend for the completion? a) Salaried, d) Identity, b) Self-employed, e) Residential. c) Banking,
15) Is it an easy or lengthy process in ICICI Bank? a) Lengthy, b) Easy, c) Necessary time consuming.
16) What are the problems, you have faced during the procedure of getting loan or after getting the loan from ICICI Bank? a) Rate of Processing Fee, b) Rate of interest, d) Lengthy Process. c) Wrong commitment from sales team, other bank? a) Yes, b) No, c) Hard to say.
17) Is it affordable interest rate in ICICI Bank in the comparison of
65
Personal loan as marketing tool in banking with specific reference to ICICI Bank 18) Any scheme, which you have utilized, at the time of getting loan from ICICI Bank? a) Concession in processing fee, c) Cut off the rate in the rate of interest, d) Special offer from ICICI Bank as a lucky draw. b) Relaxation in any EMI,
19) Are you Satisfied from the ICICI Bank Personal Loan facility? a) Yes, b) No, c) Some.
20) Do you have any complaint/suggestion to the ICICI Bank for Personal Loan facility, example a) Should make easy procedure for getting Loan, b) Should give concession in processing fee, c) Should give flexibility in rate of interest, d) Should not give any wrong commitment to the customer, e) Should give proper relaxation in any EMI at the time of actual problem conditions.
Note: In this questionnaire options areA, B, C, D,. And also, o o o o o o o Y = Yes, N = No, C = Constant about it, AT = All Total, S = Some, DK = Dont Know, NA = No Anyone.
66

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Personal loan as marketing tool in banking with specific reference to ICICI Bank

Marketing of Financial Services in Industries

Marketing of Financial Services in Banking Sector

Changes in Banks functioning in recent years

Individual 1 2 3 Professionals Executives (serving or retired) House wives and other

3. Special deposit 3.Equipment credits saving 4.Co-oprative credits

schemes 4.Venture Capital 4. Tax schemes

Banking In 21st Century

Recent Trends In Commercial Banking India

Planned economic development and deficit financing have led to increase in

Recruitment, Training and Motivation of Employees

1.7 Suggestion for Marketing Orientation

1.8 Promotion of Personal Loan Product Services In Bank

FINANCIAL MARKETING OF THE LOAN PRODUCT IN ICICI BANK

2.1 Historical Review of ICICI Bank

Problem of Marketing of financial Services

1. The problems of customer services (or customers satisfaction) have been

What Solution the Bank can Offer?

2.3 Personal Loan : need of human being

2.4 Importance of Financial Marketing in ICICI Bank

2.5 Efforts made by the ICICI Bank

2.6 Personal Loan As A Financial Marketing

Application Form (Sample standard application is attached in Appendix II ) 30

PERSONAL LOAN OF THE ICICI BANK IN AKOLA CITY

Private Limited Bank ICICI Bank

3.2 ICICI banks relationship with Akola City:

Liability Saving Account Current Account Fixed Deposit

Retail Assets - Home Loans,

SBI Bank Of Maharastra The Akola Urban Bank

4.2 Research Process

4.3 Objectives for the study:

ANALYSIS AND EVALUATION

Table T5.1: Showing awareness about personal loans

Table T5.2: Showing awareness about banks providing personal loan

Graph G5.2: Showing awareness about banks providing personal loan

Option Yes No Something

Satisfaction Yes No Neutral

Table T5.6. Showing Customer Satisfaction about the personal loan

Respondent % 100 80 60 40 20 0 Yes No Neutral Opinion of Respondents Sample Size

Respondent Opinion Positive Negative

Bank Sector Private 45 08

Private Bank Sector

Table T5.9. Showing source of awareness about ICICIs personal loan

Add campaign Telecalling

T.V. channels Sales Team Direct Approach Existing Customer

Graph G5.9. Showing source of awareness about ICICIs personal loan

Process Lengthy Easy Necessary Time Consuming

G Graph G5.10: Showing Customers Opinion about the Procedure of ICICI

Sr. No. 1 2 3 4 Total Table T5.11:

Loan Procedure Other banks

100 Sample Size 80 60 40 20 0

Loan Procedure Other banks Loan Procedure HDFC Bank

Graph G5.11: Showing Percentage of Respondents about Factors of Dissatisfaction

Option Yes No Hard to Say

100 Sample Size 80 60 40 20 0

Showing satisfaction about interest rate of ICICI bank in

comparison with other banks

ICICI Bank in comparison with other banks, 18% respondents

100 Sample Size 80 60 40 20 0

Respondents Yes Respondents No

CONCLUSION & SUGGESTIONS 6.1 Conclusion

1) Do you know about Personal Loan? a) Yes, b) No, c) Something.

3) Do you know about Personal Loan Procedure? a) Yes, b) No, c) Something.