Banking sector The growth in the Indian Banking Industry has been more qualitative than quantitative and

it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end- 2010 is estimated at Rs 40,90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is the Banking Industry is going through a transitional phase. The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry. In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ

Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry. SWOT Analysis of the Indian Banking Sector Strengths 1. Indian banks have compared favorably on growth, asset quality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the same period. From the present condition of the growing market, it is estimated that the growth in banking industry will increase by 20% by 2014-15. 2. Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks. 3. Bank lending has been a significant driver of GDP growth and employment. 4. Extensive reach: the vast networking & growing number of branches & ATMs. Indian banking system has reached even to the remote corners of the country 5. India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. 6. Foreign banks will have the opportunity to own up to 74 per cent of Indian private sector banks and 20 per cent of government owned banks.

Weakness 1. PSBs need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk management and the overall organisational performance ethic & strengthen human capital. 2. Old private sector banks also have the need to fundamentally strengthen skill levels. 3. The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies. 4. Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless industry utilities and service bureaus. Opportunities The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations. With increased interest in India, competition from foreign banks will only intensify. Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks. New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Attracting, developing and retaining more leadership capacity Foreign banks committed to making a play in India will need to adopt alternative approaches to win the race for the customer and build a value-

creating customer franchise in advance of regulations potentially opening up post 2009. At the same time, they should stay in the game for potential acquisition opportunities as and when they appear in the near term. Maintaining a fundamentally long-term value-creation mindset. reach in rural India for the private sector and foreign banks. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. the Reserve Bank of India (RBI) has approved a proposal from the government to amend the Banking Regulation Act to permit banks to trade in commodities and commodity derivatives. Threats Threat of stability of the system: failure of some weak banks has often threatened the stability of the system. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the PSB as well as the private players.

Future Landscape of Indian Banking Industry

Four trends change the banking industry world over 1) Consolidation of players through mergers and acquisitions 2) Globalisation of operations 3) Development of new technology 4) Universalization of banking Mergers and acquisitions would gather momentum as managements will strive to meet the expectations of stakeholders. This could see the emergence of 4-5

world class Indian Banks. As Banks seek niche areas, we could see emergence of some national banks of global scale and a number of regional players. With increased competition in the banking Industry, the net interest margin of banks has come down over the last one decade. Liberalization with Globalization will see the spreads narrowing further to 1-1.5% as in the case of banks operating in developed countries. Technology as an enabler is separately discussed in the report. It would not be out of place, however, to state that most of the changes in the landscape of financial sector discussed above would be technology driven. In the ultimate analysis, successful institutions will be those which continue to leverage the advancements in technology in re-engineering processes and delivery modes and offering state-of-the-art products and services providing complete financial solutions for different types of customers. International trade is an area where Indias presence is expected to show appreciable increase. Presently, Indian share in the global trade is just about 0.8% .The long term projections for growth in international trade is placed at an average of 6% per annum. With the growth in IT sector and other IT Enabled Services, there is tremendous potential for business opportunities .Keeping in view the GDP growth forecast under India Vision 2020, Indian exports can be expected to grow at a sustainable rate of 15% per annum in the period ending with 2010 .This again will offer enormous scope to Banks in India to increase their forex business and international presence .Globalization would provide opportunities for Indian corporate entities to expand their business in other countries .Banks in India wanting to increase their

international presence could naturally be expected to follow these corporates and other trade flows in and out of India The traditional banking functions would give way to a system geared to meet all the financial needs of the customer. We could see emergence of highly varied financial products, which are tailored to meet specific needs of the customers in the retail as well as corporate segments. The advent of new technologies could see the emergence of new financial players doing financial intermediation. Retail lending will receive greater focus. Banks would compete with one another to provide full range of financial services to this segment. Banks would use multiple delivery channels to suit the requirements and tastes of customers .While some customers might value relationship banking (conventional branch banking), others might prefer convenience banking (e-banking). Structure and ownership pattern would undergo changes. There would be greater presence of international players in the Indian financial system. Similarly, some of the Indian banks would become global players. Government is taking steps to reduce its holdings in Public sector banks to 33%. However the indications are that their PSB character may still be retained. If the process of consolidation through mergers and acquisitions gains momentum, we could see the emergence of a few large Indian banks with international character. There could be some large national banks and several local level banks.

Product innovation and process re-engineering

As banks strive to provide value added services to customers, the market will see the emergence of strong investment and merchant banking entities. New products on the liabilities side such as forex linked deposits, investment-linked deposits, etc. are likely to be introduced, as investors with varied risk profiles will look for better yields.

There will be more and more of tie-ups between banks, corporate clients and their retail outlets to share a common platform to shore up revenue through increased volumes. Banks will increasingly act as risk managers to corporate and other entities by offering a variety of risk management products like options, swaps and other aspects of financial management in a multi currency scenario. Banks will play an active role in the development of derivative products and will offer a variety of hedge products to the corporate sector and other investors. For example, Derivatives in emerging

futures market for commodities would be an area offering opportunities for banks. As the integration of markets takes place internationally, sophistication in trading and specialized exchanges for commodities will expand. Bancassurance is catching up and Banks / Financial Institutions have started entering insurance business. From mere offering of insurance products through network of bank branches, the business is likely to expand through self-designed insurance products after necessary legislative changes. This could lead to a spurt in fee-based income of the banks. The banking system is expected to reorient its approach to rural lending. Going Rural could be the new market mantra. Rural market comprises 74% of the

population, 41% of Middle class and 58% of disposable income. Consumer growth is taking place at a fast pace in 17113 villages with a population of more than 5000 .Of these, 9989 villages are in 7 States, namely Andhra Pradesh, Bihar, Kerala, Maharashtra, Tamilnadu ,Uttar Pradesh and West Bengal. Banks approach to the rural lending will be guided mainly by commercial considerations in future. Similarly, Banks will look analytically into various processes and practices as these exist today and may make appropriate changes therein to cut costs and delays.

Outsourcing and adoption of BPOs will become more and more relevant, especially when Banks go in for larger volumes of retail business.

Banking sector as we have seen is an immensely growing sector and Business Standard can see this sector as a great market opportunity to increase its market share. The strength, weakness, opportunities and threats of this sector can be very well leveraged by Business Standard and achieve a good amount of market penetration in this sector. For converting this prospective customer Business Standard needs to build a strong foundation focussed on capturing it and reduce the market share of its competitors like ET, Mint etc. The foundation that needs to be laid is of effective CRM system within the organization.

CRM System Customer relationship management (CRM) is a widely-implemented strategy for managing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management describes a company-wide business strategy including customer-interface departments as well as other departments. Measuring and valuing customer relationships is critical to implementing this strategy.

Benefits of CRM
A CRM system may be chosen because it is thought to provide the following advantages:

Quality and efficiency Decrease in overall costs Decision support Enterprise agility Customer Attention -Provide your customers with a more efficient way to get support than simple email -Cut your costs and save time by accessing all customer data in one simple screen -Give your customers access to view and update their information online -Create groups to quickly organize, find and contact your customers -Reward your most active customers by offering incentive points or gift certificates

CRM has various types of modules :

Sales force automation

Sales force automation (SFA) involves using software to streamline all phases of the sales process, minimizing the time that sales representatives need to spend on each phase. This allows a business to use fewer sales representatives to manage their clients. At the heart of SFA is a contact management system for tracking and recording every stage in the sales process for each prospective client, from initial contact to final disposition. Many SFA applications also include insights into opportunities, territories, sales forecasts and workflow automation, quote generation, and product knowledge. Modules for Web 2.0 e-commerce and pricing are new, emerging interests in SFA.

Marketing
CRM systems for marketing help the enterprise identify and target potential clients and generate leads for the sales team. A key marketing capability is tracking and measuring multi-channel campaigns, including email, search, social media, telephone and direct mail. Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions offer to track customer behaviour and nurture them from first contact to sale, often cutting out the active sales process altogether. Most marketing modules also give you tracking tools to measure the effectiveness of your marketing campaigns. Customer service and support Recognizing that service is an important factor in attracting and retaining customers, organizations are increasingly turning to technology to help them improve their clients experience while aiming to increase efficiency and minimize costs.Even so, a 2009 study revealed that only 39% of corporate executives believe their employees have the right tools and authority to solve client problems. In a web-focused marketing CRM solution, organizations create and track specific web activities that help develop the client relationship. These activities may include such activities as free downloads, online video content, and online web presentations.

Appointment
Creating and scheduling appointments with customers is a central activity of most customer oriented businesses. Sales, customer support, and service personnel regularly spend a portion of their time getting in touch with customers and prospects through a variety of means to agree on a time and place for meeting for a sales conversation or to deliver customer service. Appointment CRM is a relatively new CRM platform category in which an automated system is used to offer a suite of suitable appointment times to a customer via e-mail or through a web site. An automated process is used to schedule and confirm the appointment, and place it on the appropriate person's calendar. Appointment CRM systems can be an origination point for a sales lead and are generally integrated with sales and marketing CRM systems to capture and store the interaction.

Analytics
Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service. These features can be complemented and augmented with links to separate, purpose-built applications for analytics and business intelligence. Sales analytics let companies monitor and understand client actions and preferences, through sales forecasting and data quality. Marketing applications generally come with predictive analytics to improve segmentation and targeting, and features for measuring the effectiveness of online, offline, and search marketing campaigns. Web analytics have evolved significantly from their starting point of merely tracking mouse clicks on Web sites. By evaluating buy signals, marketers can see which prospects are most likely to transact and also identify those who are bogged down in a sales process and need assistance. Marketing and finance personnel also use analytics to assess the value of multi-faceted programs as a whole. These types of analytics are increasing in popularity as companies demand greater visibility into the performance of call centers and other service and support channels,in order to correct problems before they affect satisfaction levels. Supportfocused applications typically include dashboards similar to those for sales, plus capabilities to measure and analyze response times, service quality, agent performance, and the frequency of various issues.

Integrated/Collaborative
Departments within enterprises especially large enterprises tend to function with little collaboration. More recently, the development and adoption of these tools and services have fostered greater fluidity and cooperation among sales, service, and marketing. This finds expression in the concept of collaborative systems that use technology to build bridges between departments. For example, feedback from a technical support centre can enlighten marketers about specific services and product features clients are asking for. Reps, in their turn, want to be able to pursue these opportunities without the burden of re-entering records and contact data into a separate SFA system.

Tie-ups with leading brands Tie ups with leading brands related to clothing or any other segments, in return they can be given Ad-space in Business Standard . Such a tie-up will help in coupons promotion. Strategies to increase the circulation of Business Standard in the Banking sector are as follows : 1. Targeting Head Offices In this our seniors can talk with the head office for subscription or get permission for an activity . 2. Activity : - After the permission is obtained ,an activity can be conducted to attract the bank employees. They can be attracted with coupons giving discounts for purchases which will depend on the company tie-ups. - offer bank employee a special trial offer like week trail offer at rs.This will help to give an employee an insight into the newspaper and also give them time to think. During this the sales representative should record the contact information of the customer and make follow ups. 3. SMS service : The most common problem faced by the bank employees is their lack of time for reading financial newspaper.So in order to put them into a habit of reading Business Standard we can give the subscribers an option to register their cellphones with the company . Now in this the customer can send an SMS BS <TIPS STOCK> for stock news to the no. 1800 XXXXXXXX

Instead of Stock news the customer can opt for tips on new developments in the banking sector/investment news/leisure & entertainment/about cars. Total customization should be made available. 4. The banking annual magazine circulation can be increased instead of Quarterly circulation we can make it monthly and make it much more comprehensive like Indian Management. By this we can even attract more bank advertisements. 5. Create an Ad space exclusively for banks. 6. Provide sponsor ships for their events. This will help to increase the brand awareness. 7. Business Standard can organize award ceremonies for the banks like Best Bank award, Award for excellence etc. This will help in increasing the brand awareness among the banks and also build a lasting relationship with the existing customer. In this way , we can attract more banks. During this we can also have an activity at the same time to attract new customers. 8. Business Standard can also work with banks for their CSR initiatives. For e.g. Launch of comic book 'Raju and the Money Tree by Disha Financial Counselling, a trust under the aegis of ICICI Bank, and the Reserve Bank of India (RBI) on Wednesday jointly unveiled the first comic book on basics of banking, as part of RBI's strategy to promote financial literacy in the country. The comic aims to educate the school children on importance of saving for future. Business Standard can help in such promotional activities of the bank. 9. Business Standard can even help regional banks in their initiatives like the development of the rural areas in India. It can start a special issue catering to this initiative and conduct an awareness campaign . This will help to create a positive image of BS among the banks and also BS can leverage this by getting a subscription at the bank . 10. Reduction of price for banks is another great option and gradually increase it and give them the best service, the banks employees once put under a habit of reading Business Standard for one year along with a good service will give Business Standard a loyal customer. And once he becomes a loyal customer , he can be given other added benefits like a special discount for an old customer which will help the company to retain its customer.

11.Relationship marketing concept should be brought into the organization culture. The term relationship marketing is defined as The consistent application of up-todate knowledge of individual customers to product and service design . . . . In order to develop a continuous and long-term relationship It is not mass marketing. It is aimed at individual. It preaches Customer retention and not attraction. It helps to build long term, and ongoing relationships. It is possible only with regular customer contact and thereby developing a spirit of trust. Relationship marketing, just as the name implies is simply the art of developing a personal relationship with your customers. "Business is not just doing deals; business is having great products, doing great engineering and providing tremendous service to customers. Finally, business is a cobweb of human relationship." Henry Ross Perot Customers are known to be indecisive but they are all looking for something in common, "value at a fair price." Customers are looking for solutions to their problem and how do you know their problems when you have no relationship with them. Customers value relationship a lot, they are always looking for someone to discuss their problems with and this is where you come in. "There is only one boss; the customer. And he can fire everybody in the company, from the chairman down, simply by spending his money somewhere else." Sam Walton With a global increase in competition; which is as a result of the advent of the internet, a strong customer relationship can be our competitive strategy to gaining undue advantage in our niche. Today,there is a need to connect with our customers. "The purpose of a business is to create a customer." Peter F. Drucker Business Standard can do the relationship based marketing by few simple steps : -

1. Make every customer interaction count. Give them what they need and make them your loyal customer. 2. Follow-through on commitments and claims about products or services. Just as I said earlier, our business must make a specific promise to the customer and deliver on that promise if it intends to win the heart of the customer. False claims however should be avoided at all cost as it can harm our credibility.Thereby effective our brand image. 3. Offer benefits and product value that responds to the customers desires. Another positive step to building a strong customer relationship is to offer value to the customer. Go out of way to let our customers know that we are a stickler for quality. "If you build a great experience, customers tell each other about that. Word of mouth is very powerful." Jeff Bezos 4. Treat customers as individuals who are respected and valued. It cost more to find a new customer than to take care of existing ones. 5. Listen to customers. Even complaints can be a gift if handled properly and quickly. Be available and accessible when customers have questions, concerns, or comments. Humans always look for someone to talk to or share their problems with. If we can listen more to our customers, we will end up knotting the bond between the customer and our newspaper. 6. Surround your customers with valuable information by using emails, website content, social media, and other methods of outreach but do not be invasive. Keep them informed on the latest trend, price or development. We must make it easy for customers to reach us; if possible, be their next door neighbor. 7. Reward loyal customers. Introducing a loyalty program is a very effective relationship marketing strategy. This will help us in retaining our old customers, which for some reason we are lagging behind. Creating long lasting relationships helps to ensure long-lasting customers and repeat sales. Customers want to know that they are valued and appreciated as an individual. Showing existing customers that value and appreciation encourages them to refer their colleagues, friends, and others to our business.

12.Lastly, We should also try to keep our Vendors happy by giving them some incentives or by honouring them by giving them parties.