INTERNSHIP DISSERTATION ON

Analyzing product penetration and service positioning offered by different private commercial banks & assessing the business potential for Dhanlaxmi Bank

Accomplished at DHANLAXMI BANK

Submitted in partial fulfillment of Post Graduation Diploma In Business Management

Submitted To: Mr.Rachit Haldiya Faculty FMS-IRM

Submitted By: Suresh Kumar Tolani Roll No.-1517 Session-2009-2011

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CERTIFICATE

product penetration and service positioning offered by different private commercial banks & assessing the business potential for Dhanlaxmi Bank is a record of project work done independently by
Certified that this project report entitled Mr. Suresh Kumar Tolani under my guidance and supervision and that it has not previously formed the basis for the award of any degree, fellowship or association with him.

Analyzing

DATE:

NAME AND SIGNATURE Mr. Rachit Haldiya (FACULTY GUIDE) .. Mr. Anuj Dasot (CORPORATE GUIDE) ..

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DECLARATION

I hereby declare that this project report entitled Analyzing

product penetration and service positioning offered by different private commercial banks & assessing the business potential for Dhanlaxmi Bank is a bona fide record of work done by
me during the course of summer project work and that it has not previously formed the basis for the award to me for any degree/diploma/association/fellowship or other similar title of any other institute/society.

DATE:

Suresh Kumar Tolani

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ACKNOWLEDGEMENT
If you want your efforts to reflect, then just abide by the rules made by a perfect.

I strictly followed the above line and so I would like to express my heartfelt thanks to my Project Guide Mr. Anuj Dasot, (RELATIONSHIP MANAGER), for providing me the opportunity to step into the practical corporate world to team up my classroom learning with the exposure available in the organization, which gave me a robust opportunity to learn.

I would like to express my sincere thanks to Director FMS-IRM Brig. S. K. Gaur and Faculty Coordinator Prof. R. C. Mathur for giving me an opportunity to learn.

I am very much thankful to Mr. Rachit Haldiya (FACULTY GUIDE) for his continuous guidance and support, which proved to be very helpful throughout the project tenure.

I also take privilege to extend my earnest thanks to Mrs. Sneh Walia Garg (Operations Manager), Mr. Harsh Dube (Regional Sales Manager) and Mr. Salabh Priyadarshi (Manager, Trade & Advances Group) for sparing their precious time and providing all the needed information necessary for the accomplishment of the project.

Date:

Suresh Kumar Tolani

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TABLE OF CONTENTS
S.No.

Topics
EXECUTIVE SUMMARY CHAPTER:-1 INTRODUCTION STATEMENT OF THE PROBLEM OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY UTILITY OF THE STUDY LIMITATIONS OF THE STUDY REVIEW OF LITERATURE INDUSTRY PROFILE DHANLAXMI BANK PROFILE BUSINESS MIX OF DHAN BANK STRATEGICAL ASPECTS OF DHAN BANK PRODUCT SUITE COMPARISON OF PRODUCT FEATURES MARKET SHARE ANALYSIS DATA ANALYSIS AND INTERPRETATION KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS OF THEIR NEEDS CRITERIA OF SELECTING THE BANK FOR BANKING REQUIREMENTS SATISFACTION LEVEL OF PUBLIC SECTOR BANK CUSTOMERS SATISFACTION LEVEL OF PRIVATE SECTOR BANK CUSTOMERS RELATION BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL DOES YOUR BANK GIVES YOU REGULAR UPDATES ABOUT NEW PRODUCT AND SERVICES MOBILE BANKING AND INTERNET BANKING SERVICES: PATTERN OF USAGE AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR RISK TAKING ABILITY WITH RESPECT TO DIFFERENT INCOME LEVELS ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT DIFFERENT LEVELS OF AGE:SUMMARY OF FINDINGS AND SUGGESTIONS SWOT ANALYSIS BIBLIOGRAPHY APPENDIX

Page No.
7 8 9 10 11 13 14 15 23 31 36 37 40 42 45 46 47 48 49 50 51 52 53 54 55 57 58 60 62 63

1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2 2.1 2.2 2.3 2.4 2.5 3 3.1 3.2 3.3 3.4 3.5 3.6

3.7 3.8 3.9 3.10

4 4.1 5 6

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LIST OF GRAPHS, FIGURES & TABLES Topics

FIGURE:-1 STRUCTURE OF INDIAN BANKING INDUSTRY FIGURE:-2TRADITIONAL BANKING FIGUER:.3RELATIONSHIP BANKING GRAPH:-2.1 BUSINESS MIX OF DHANLAXMI BANK GRAPH:-2.2 GEOGRAPHICAL BUSINESS MIX OF DHAN BANK GRAPH:-2.3 NETWORKING ANALYSIS GRAPH:-2.4 INCREASE IN CASA FIGURE:-4 PRODUCT SUITE TABLE:-2.1 COMPARISON OF RETAIL PRODUCTS TABLE:-2.2- COMPARISON OF SERVICES OFEERED TABLE:- 2.3 COMPETITOR ANALYSIS AT A GLANCE TABLE:-2.4 MARKET CAPITALIZATION OF PRIVATE BANKS GRAPH:-2.5 MARKET SHARE ANALYSIS TABLE:3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS OF THEIR NEEDS GRAPH:-3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS OF THEIR NEEDS TABLE:3.2 CRITERIA OF SELECTING THE BANK FOR BANKING REQUIREMENTS GRAPH:-3.2 CRITERIA OF SELECTING THE BANK FOR BANKING REQUIREMENTS TABLE:3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK CUSTOMERS GRAPH:-3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK CUSTOMERS TABLE:3.4 SATISFACTION LEVEL OF PRIVATE SECTOR BANK CUSTOMERS GRAPH:-3.4 SATISFACTION LEVEL OF PRIVATE SECTOR BANKCUSTOMERS TABLE:3.5 RELATION BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL GRAPH:-3.5 RELATION BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL TABLE:3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES ABOUT NEW PRODUCT AND SERVICES GRAPH:-3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES ABOUT NEW PRODUCT AND SERVICES TABLE:3.7 MOBILE BANKING AND INTERNET BANKING SERVICES: PATTERN OF USAGE GRAPH:-3.7 MOBILE BANKING AND INTERNET BANKING SERVICES: PATTERN OF USAGE TABLE:3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR GRAPH:-3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR TABLE:3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT INCOME LEVELS GRAPH:-3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT INCOME LEVELS TABLE:3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT DIFFERENT LEVELS OF AGE:GRAPH:-3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT DIFFERENT LEVELS OF AGE:PAGE

24 29 30 36 36 37 38 40 42 43 33 45 45 47 47 48 48 49 49 50 50 51 51 52 52 53 53 54 54 55 55 57 57

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EXECUTIVE SUMMARY
Retail banking is a banking service that is geared primarily toward individual consumers. Retail banking entities provide a wide range of personal banking services including offering current accounts, deposit accounts and saving accounts, bill paying services, as well as debit and credit cards. Through retail banking, consumers may also obtain mortgages and personal loans.

Retail banking industry is expected to reach a position of high growth till 2011. This requires expansion and diversification of retail portfolio, better penetration and faster service mechanism. As current market place is highly competitive and each corporate is expanding its business round the globe for its global presence so they do study related to market trend regarding to their market share in comparison to their competitors. Jaipur branch of Dhanlaxmi is functional since September 2009. They are new to Jaipur market so this study is carried out to estimate the business potential for Dhanaxmi Bank. For this, analysis of the sales trends of Financial product, ie Saving a\c , Current a\c , Fixed Deposits & investment services has completed in Jaipur city. This study is confined to some of the areas like M.I. Road, Sansar Chandra Road, Saraogi mansion etc of Jaipur city The project entitled ANALYZING PRODUCT PENETRATION AND SERVICE POSITIONING OFFERED BY PRIVATE BANKS & ASSESING THE BUSINESS POTENTIAL FOR DHANLAXMI BANK helped the bank to understand the scope of retail banking in certain areas of Jaipur city. Products which have covered in the study were Saving A/c, Current A/c and Investments.

The utility of project can be derived from the fact that today banks have diversified products. Now saving accounts are of many types. Current account have new face i.e. Roaming current account. .

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CHAPTER:-1 INTRODUCTION

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STATEMENT OF THE PROBLEM

Dhan bank is new to the Jaipur city. ICICI, HDFC, AXIS BANK & YES BANK is already in the market. These are the major players of private bank industry. The market competition is very high. Dhan bank is looking to position its products and services faster to reach their vision of being among the top five private banks. Dhan bank is looking to tap the market around the branch in the range of five kms. As it is their first branch, people are not aware about dhan bank. Advertisement campaign is still awaited and they have to increase the business without it. Dhan bank is looking towards their competitors, how they have penetrated and positioned services in the market of Jaipur so that they can differentiate their products accordingly. Knowing your customer is a key tool for market penetration. Dhan bank wants an analysis on demographics of Jaipur market to assess the business potential for them.

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OBJECTIVE OF THE PROJECT

PRIMARY OBJECTIVES

To judge the business potential for DHANLAXMI BANK, JAIPUR. To compare products and services offered by major Private Banks. To judge the level of competition at specified market around 5 Kms. area of the branch office. To judge the awareness level of Dhanlaxmi Bank in
Jaipur.

SECONDARY OBJECTIVES To promote the products and services offered by Dhanlaxmi Bank. To increase the awareness level of Dhan Bank in Jaipur.

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RESEARCH METHODOLOGY This section deals with the methodology employed to carry out the project. A well structured process is important for the successful execution of a good field work. It is important to develop good background information before actually interviewing the respondents.

1. Research Design:-After analyzing problem statement and objectives of the study the design of research was set to be exploratory research. 2. Sampling Design: UNIVERSE:- huge customer base in Jaipur city availing public or private sector banks for their banking requirements. SAMPLING UNIT:-comprised of retail store owners and salaried persons over there.

SOURCE LIST:-the sample frame was drawn by short listing the markets around 5 Kms. of branch. RESEARCH LOCATION:-survey was conducted in Jaipur city at M.I.Road, Sansaar Chandra Road, Ganpati plaza, Saraogi mansion.

SAMPLING METHOD:-sampling technique applied for conduction of the survey is Non Probability Sampling. The units were selected on the basis of Convenient Sampling. Convenience in terms of proximity, communication, interest of respondents was preferred. SAMPLE SIZE:-sample size for the study is taken 100.

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3. DATA COLLECTION: PRIMARY DATA COLLECTION:-Primary data was collected with the help of a set of questions, and interviewing the customers. The questionnaire contained brief customer profile and followed by 8 questions regarding respondents banking activities and rest 5 regarding their investment activities. All the questions were closed ended. Customer interview also provided important information required for study.

SECONDARY DATA COLLECTION:-Secondary data is collected

via internet, books, journals company website and brochures etc. which provided adequate information for comparative study of products and services offered by private banks.

4. DATA ANALYSIS AND REPRESENTATION TOOLS:-MS-Excel and MSAccess are the software used to find out the important relationships. Pie charts, bar diagram, tables are used to represent the results of survey conducted.

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UTILITY OF THE STUDY:

Utility of the study can be derived from following facts:

Current market situation is highly competitive where products are diversified. Every player has different types of current and saving accounts as well as attractive fixed deposit schemes. This study can help Dhan bank to know the needs and requirements of customers. This study can help Dhan bank to evaluate the marketing and sales strategies of competitors as how they have positioned their products in the customer mindset. Survey results can help to modify their upcoming products according to customer needs and requirements. Execution of survey has helped to increase awareness of Dhanlaxmi Bank among the customers surveyed. Study can help the bank to judge the required service quality and benchmarks in Jaipur market.

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LIMITATIONS OF THE STUDY

Sample Size The sample size for customer survey taken 100 was not enough as compared to huge customer base of private banks. The findings based on this sample size might not provide accurate results. Respondent Unawareness This is the first branch of dhanlaxmi bank in Jaipur. People are not aware of the bank. Advertisement campaign has not started. Respondent Non Co-operation Many respondents were unwilling to disclose information about their banking and investment due to suspicion, lack of time, lack of interest. Reliability of Competitor Details Most of competitor details were gathered through secondary data sources other than linked directly to competitor. The data collected through these sources might not be reliable which can deviate the analysis results. Time Shortage The project duration of 45 days proved to be insufficient to attend to all the components of research problem. Occasionally compromises over quality and quantity were made due to time acuteness.

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REVIEW OF LITERATURE:
RETAIL BANKING
DEFINITION:

Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so

The Retail Banking environment today is changing fast. The changing customer demographics demands to create a differentiated application based on scalable technology, improved service and banking convenience. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as so to ensure that the banks customer gets Uniformity and Consistency of service delivery across time and at every touch point across all channels. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. High cost structure rendering mass-market servicing is prohibitively expensive. Present day tech-savvy bankers are now more looking at reduction in their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve their client base and economies of scale.
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The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches a multi-channel bank and to eliminate the disadvantage of an inadequate branch network. Generation of leads to cross sell and creating additional revenues with utmost customer satisfaction has become focal point worldwide for the success of a Bank.

Todays retail banking sector is characterized by three basic characteristics: Multiple products (deposits, credit cards, insurance, investments and securities) Multiple channels of distribution (call center, branch, internet) Multiple customer groups (consumer, small business, and corporate).

STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

Constant product innovation to match the requirements of the customer

segments The customer database available with the banks is the best source of their demographic and financial information and can be used by the banks for targeting certain customer segments for new or modified product. The banks should come out with new products in the area of securities, mutual funds and insurance.

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 Quality service and quickness in delivery

As most of the banks are offering retail products of similar nature, the customers can easily switchover to the one, which offers better service at comparatively lower costs. The quality of service that banks offer and the experience that clients have, matter the most. Hence, to retain the customers, banks have to come out with competitive products satisfying the desires of the customers at the click of a button.

Introduction of new delivery channels

Retail customers like to interface with their bank through multiple channels. Therefore, banks should try to give high quality service across all service channels like branches, Internet, ATMs, etc.

Tapping of unexploited potential and increasing the volume of business

This will compensate for the thin margins. The Indian retail banking market still remains largely untapped giving a scope for growth to the banks and financial institutions. With changing psyche of Indian consumers, who are now comfortable with the idea of availing loans for their personal needs, banks have tremendous potential lying in this segment. Marketing departments of the banks be geared up and special training be imparted to them so that banks are successful in grabbing more and more of retail business in the market.

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 Infrastructure outsourcing
This will help in lowering the cost of service channels combined with quality and quickness.

Detail market research

Banks may go for detail market research, which will help them in knowing what their competitors are offering to their clients. This will enable them to have an edge over their competitors and increase their share in retail banking pie by offering better products and services.

Cross-selling of products
PSBs have an added advantage of having a wide network of branches, which gives them an opportunity to sell third-party products through these branches.

Business process outsourcing

Outsourcing of requirements would not only save cost and time but would help the banks in concentrating on the core business area. Banks can devote more time for marketing, customer service and brand building. For example, Management of ATMs can be outsourced. This will save the banks from dealing with the intricacies of technology.

Tie-up arrangements
PSBs with regional concentration can reap the benefit of reaching customers across the country by entering into strategic alliance with other such banks with intensive presence in other regions. In the present regime of falling interest and stiff competition, banks are aware that it is finally the
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retail banking which will enable them to hold the head above water. Hence, banks should make all out efforts to boost the retail banking by recognizing the needs of the customers. It is essential that banks would be imaginative in predicting the customers' expectations in the ever-changing tastes and environments. It is the innovative and competitive products coupled with high quality care for clients will only hold the key to success in this area. In short, bankers have to run very fast even to stay where they are now. It is the survival of the fastest now and not only survival of the fittest.

EMERGING ISSUES IN HANDLING RETAIL BANKING

KNOWING CUSTOMER
Know your Customer is a concept which is easier said than practiced. Banks face several hurdles in achieving this. In order to that the product lines are targeted at the right customers-present and prospective-it is imperative that an integrated view of customers is available to the banks. The benefits flowing out of cross-selling and up-selling will remain a far cry in the absence of this vital input. In this regard the customer databases available with most of the public sector banks, if not all, remain far from being enviable. What needs to be done is setting up of a robust data warehouse where from meaningful data on customers, their preferences, there spending patterns, etc. can be mined. Cleansing of existing data is the first step in this direction. PSBs have a long way to go in this regard.

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 TECHNOLOGY ISSUES
Retail banking calls for huge investments in technology. Whether it is setting up of a Customer Relationship Management System or Establishing Loan Process Automation or providing anytime, anywhere convenience to the vast number of customers or establishing channel/product/customer profitability, technology plays a pivotal role. And it is a long haul. The Issues involved include adoption of the right technology at the right time and at the same time ensuring volumes and margins to sustain the investments. It is pertinent to remember that Citibank, known for its deployment of technology, took nearly a decade to make profits in credit cards. It has also to be added in the same breath that without adequate technology support, it would be well nigh possible to administer the growing retail portfolio without allowing its health to deteriorate. Further, the key to reduction in transaction costs simultaneously with increase in ability to handle huge volumes of business lies only in technology adoption. PSBs are on their way to catch up with the technology much required for the success of retail banking efforts. Lack of connectivity, stand alone models, concept of branch customer as against bank customer, lack of convergence amongst available channels, absence of customer profiling, lack of proper decision support systems, etc., are a few deficiencies that are being overcome in a great way. However, the initiatives in this regard should include creating flexible computing architecture amenable to changes and having scalability, a futuristic approach, networking across channels, development of a strong Customer Information Systems (CIS) and adopting Customer Relationship Management (CRM) models for getting a 360 degree view of the customer.

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 ORGANIZATIONAL

ALIGNMENT

It is of utmost importance that the culture and practices of an institution support its stated goals. Having decided to take a plunge into retail banking, banks need to have a well defined business strategy based on the competitive of the bank and its potential. Creation of a proper organization structure and business operating models which would facilitate easy work flow are the needs of the hour. The need for building the organizational capacity needed to achieve the desired results cannot be overstated. This would mean a strong commitment at all levels, intensive training of the rank and file, putting in place a proper incentive scheme, etc. As a part of organizational alignment, there is also the need for setting up of an effective Corporate Marketing Division. Most of the public sector banks have only publicity departments and not marketing setup. A fully fledged

marketing department or division would help in evolving a brand strategy, address the issue of alienation from the upwardly mobile, high net worth customer group and improve the recall value of the institution and its products by arresting the trend of getting receded from public memory. The much needed tie-ups with manufacturers/distributors/builders will also facilitated smoothly. It is time to break the myth PSBs are not customer friendly. The attention is to be diverted to vast databases of customers lying with the PSBs till unexploited for marketing.

PRODUCT INNOVATION
Product innovation continues to be yet another major challenge. Even though bank after bank is coming out with new products, not all are successful. What is of crucial importance is the need to understand the
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difference between novelty and innovation?

Peter Drucker in his path

breaking book: Management Challenges for the 21st Century has in fact sounded a word of caution: innovation that is not in tune with the strategic realities will not work; confusing novelty with innovation (should be avoided), test of innovation is that it creates value; novelty creates only amusement. The days of selling the products available in the shelves are gone. Banks need to innovate products suiting the needs and requirements of different types of customers. Revisiting the features of the existing products to continue to keep them on demand should not also be lost sight of.

PRICING OF PRODUCT
The next challenge is to have appropriate policies in place. The industry today is witnessing a price war, with each bank wanting to have a larger slice of the cake that is the market, without much of a scientific study into the cost of funds involved, margins, etc. The strategy of each player in the market seems to be: under cutting others and wooing the clients of others. Most of the banks that use rating models for determining the health of the retail portfolio do not use them for pricing the products. The much needed

transparency in pricing is also missing, with many hidden charges. There is a tendency, at least on the part of few to camouflage the price. The situation cannot remain his way for long. This will be one issue that will be gaining importance in the near future.

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INDUSTRY PROFILE

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BANKING BASICS The Indian banking industry which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories. Scheduled Banks Non-scheduled Banks

RESERVE BANK OF INDIA (CENTRAL BANK AND SUPREME MONETORY AUTHORITY)

SCHEDULED BANKS
(96) COMMERCIAL BANKS CO-OPERATIVE BANKS

REGIONA FOREIGN L RURAL BANKS BANKS (40) (196)

PUBLIC SECTOR BANKS (27)

PRIVATE SECTOR BANKS (30)

URBAN COOPERATIVE BANKS (52)

SBI & ASSOCIATE BANKS (8)

OLD PRIVATE BANKS (22)

STATE COOPERATIVE BANKS (16)

OTHER NATIONALIZED BANKS (19)

NEW PRIVATE BANKS (8)

FIGURE:-1 STRUCTRE OF INDIAN BANKING INDUSTRY

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Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks(old/new domestic and foreign) Banking regulation act of India, 1949 defines banking as accepting, for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise and withdraw able by cheques, draft and order or otherwise.

In addition, Banks are allowed to perform certain activities which are ancillary to this business of accepting deposits and lending. A banks relationship with the public, therefore, revolves around accepting deposit and lending money. Another activity which is assuming increasing importance is transfer of money, both domestic and foreign, from one place to another. This activity is generally known as Remittance Business in banking parlance. The so called forex (foreign exchange) is largely a part of remittance. It involves buying and selling o0f foreign currencies. The law governing Banking Activities in India is called Negotiable Instrument Act 1881. The banking activities can be classified as:

Accepting deposits from public/others Transferring money from one place to another Acting as trustees Keeping valuable in safe custody Collection business Deposits Loans Lending money to public

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HISTORY
Banking in India originated in the last decades of the 18th century with The General Bank of India which came into existence in 1786. This was followed by The Bank of Hindustan. Both of these are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta (later Bank of Bengal) in June 1806. A couple of decades late, foreign banks like Credit Lyonnais started their Calcutta operations in 1850s. The first fully Indian owned bank was The Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India in 1906, in Mumbai. Both these were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank of India was nationalized and given broader powers.

POST-INDEPENDENCE

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

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However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19th July 1969.

NATIONALIZATION
By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalize the banking industry. The Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALISATION
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

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CURRENT SITUATION
Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 49,000 ATMs. The industry is currently in a transition phase. On the one hand, the Public Sector Banks which are the mainstay of Indian banking system, are in the process of shedding their flab in terms of excessive manpower, excessive Non Performing Assets (NPAs) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. With he growth in the Indian economy which is expected to be strong for services sector, the demand for the banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect mergers and acquisitions, takeovers and asset sales. Banking industry has completely moulded the system with some great technological developments and few revolutionary thoughts. Introduction of MIS (MANAGEMENT INFORMATION SYSTEM), HRIS (HUMAN RESOURCE INFORMATION SYSTEM), ERP SYSTEMS has made this system quick and efficient. Investment is the part of services sector which is facing a tough competition these days. Both the public and private sector banking institutions are the major players. The scenario which they have brought up in the market through their unpretentious hardworking and high quality work, has made a cluster breaking entry in the era of competition.

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TRADITIONAL BANKING Traditionally the relationship between bank and its customer has been on a one-to-one level via the branch network. This was put into operation with clearing and design making responsibilities at the individual branch level. The head office had the responsibility for the overall clearing network, the size of the branch network and the training of staff in the branch network. The branch monitored the organizations performance and set the decision making parameters, but the information available to both branch and their customers was limited to one geographical location.

Customer

Customer

Customer

Bank Branch Clearing Decision

Bank Branch Clearing Decision

Bank Branch Clearing Decision

Central clearing

Central clearing

FIGURE:-2 Traditional banking structure

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RELATIONSHIP BANKING The modern bank cannot rely on its branch network alone. Customers are now demanding new, more convenient, delivery systems. And services such as internet banking have a dual role for the customer thus increasing the productivity of this sector. They provide traditional banking service, but additionally offer much greater access to information on their account and on the banks many other services. To do this banking has to create information layers, which can be accessed both by bank staff as well as by the customers themselves. The use of interactive electronic links via the internet can go a long way in providing the customers with greater deal of information about both their financial situation and about the services offered by the bank. FIGURE:-3-RELATIONSHIP BANKING

Customers

Telephone, Branch, Electronic Banking, etc.

Shared Information

Clearing systems

Head Office Risk Monitoring

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CHAPTER:-2 DHANLAXMI BANK PROFILE

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COMPANY PROFILE:
Dhanalakshmi Bank Ltd was incorporated on 14th November 1927 by a group of enterprising entrepreneurs at Thrissur city, the "Cultural Capital of Kerala" with a capital of Rs 11,000 and 7 employees. It became a Scheduled Commercial Bank in the year 1977. It has now attained national stature with 181 branches and 26 Extension Counters spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi and West Bengal. in 2010 they were started the six branch in Gujarat[Vadodata, Ahmedabad, Veraval, Palanpur, Bardoli]

The Dhanalakshmi Bank has deployed technology widely as an instrument for enhancing the quality of customer service. It has introduced Centralized Banking Solution (CBS) on the Flexcube Platform at all its branches for extending anywhere/anytime/anyhow banking to its clientele through multiple delivery channels. The bank has set-up a state-of-the-art Data Centre in Bangalore, to keep the networked system operational round the clock. A Disaster Recovery Centre is also operational at Thrissur for meeting various contingencies.

Vision & Mission

To be amongst the top 5 Private Sector Banks in terms of Banks Balance sheet size Profits Branch network Asset Quality To be a large profitable A rated bank.

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Achievements, Affiliations and Milestones Achievements

Serviced business worth Rs. 8,212 crores as on 31 March 2009, comprising deposits worth Rs. 4,969 crores and advances worth Rs. 3,245 crores. Earned a net profit of Rs. 57.45 crores for the financial year ended 31st March 2009, with a capital adequacy ratio of 14.44% during the same period.

Put in place the Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems to facilitate large value payments and settlements online in real time, on a transaction-bytransaction basis. Set up NRI Boutiques (Relationship Centres) across nine locations in Kerala and Tamil Nadu, with plans to open specialized NRI outlets at potential locations with emphasis on impeccable service levels.

Dispensed Micro Credit among private and public banks in Kerala, the Bank's outstanding under micro credit was Rs. 124.40 crores at the end of March 2009. Attained ISO 9001-2000 certification for the Bank's corporate office at Thrissur and industrial finance branch at Kochi.

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Affiliations
Major Exchange Houses
UAE Exchange Centre LLC Al Ahalia Money Exchange Bureau UAE Exchange Centre WLL

Foreign Correspondent Banks

Deutsche Bank Trust Company Americas Wachovia Bank NA - A Wells Fargo Company Commerzbank AG National Westminister Bank PLC

Insurance Partner
Bajaj Allianz

Milestones
1927 - Founded on 14 November, 1927, at Thrissur, Kerala 1975 - Set up the first branch outside the home state of Kerala, at Chennai Mount Road 1977 - Designated as Scheduled Commercial Bank by the Reserve Bank of India (RBI) 1980 - 100-strong branch network 1986 - Total business of Rs. 100 crores 1996 - First public issue. Total business of Rs. 1,000 crores 2000 - Installed the first ATM 2002 - First Rights Issue
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2002 - Platinum Jubilee year 2007 - Total business of Rs. 5,000 crores. 80th Anniversary year 2008- Total business of Rs. 7,500 crores. Second Rights Issue 2009- Expanded branch network by 27 branches. Total business of Rs. 10,000 crores

Financial Inclusion Initiatives

Surpassed the RBI's benchmark of priority sector lending of 40% by advancing Rs. 1,148 crores as on 31 March 2009, representing 53.48%. Surpassed RBI's recommended norm of 18% advances with respect to agricultural credit by lending Rs. 557 crores as on 31 March 2009, representing 21.40%.

Outstanding of Rs. 22.29 crores were under weaker sections, representing 10.31% as against the RBI benchmark of 10% as on 31 March 09. Outstanding in the area of micro credit totalled Rs. 125 crores as on 31 March 2009.

The number of Savings Bank accounts maintained by Self Help Groups (SHGs) numbered 20,740 while credit facilities availed by SHGs stood at Rs. 35 crores as on 31 March 2009. Kissan Credit Cards for Rs. 5.06 crores were issued to 1,717 farmers as at the end of March 2009.

Opened 83,046 no-frills accounts with outstanding of Rs. 22.22 crores as on 31 March 09, as part of financial inclusion initiatives.

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BUSINESS MIX OF DHANLAXMI BANK:-

BUSINESS MIX
MICRO/AGRI, 11% RETAIL, 13%

TAG, 14%

WBG, 62%

RETAIL

TAG

WBG

MICRO/AGRI

Graph:-2.1 BUSINESS MIX OF DHANLAXMI BANK

GEOGRAPHICAL BUSINESS MIX

80% 70% 60% 50% 40% 30% 20% 10% 0% 31/03/2009 KERALA

70% 56% 44% 30%

NON KERALA 15/02/2010

Graph:-2.2 GEOGRAPHICAL BUSINESS MIX OF DHANLAXMI BANK

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STRATEGICAL ASPECTS OF DHAN BANK:1. MARCH TOWARDS PAN INDIA EXPANSION:-

Dhanalakshmi Bank Ltd. (Dhanbank) has vision to be one of the top 5 Indian private banks in the near future. To attain this goal. Dhanbank has huge expansion plans to tap the potential lying in other places outside Kerala. Dhanbank is expected to open up 66 new branches and 389 new ATMs in the current financial year. Dhanbank will convert its 26 extension counters into full fledge branches in the current year, taking the total no. of branches to 273 in the current year. Dhanbank is expected to have 400 branches & 600 ATMs by the end of FY2010-11.

GRAPH:-2.3 NETWORKING ANALYSIS Dhanbank has got a contract with a German company, AGS, to handle its new ATM opening based on only opex no capex model. As per this model, AGS would be responsible for setting up new ATMs at strategic locations and to maintain the ATMs. Cost incurred to Dhanbank would be on number of transactions

Dhanbank has 65% of its branches in state of Kerala. Out of the new branches few would be located in rural areas of Kerala and other would be mainly in Maharashtra & Gujarat & Northern areas, as these areas has the highest portion of deposits and loan off-take, from the total business of Indian banks. Opening of new rural branches would help Dhanbank to tap the huge potential lying in the rural areas. Dhanbank is expecting to add 900-1000 accounts daily after achieving the 273 branches target. This would help to bring in more CASA deposits.
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2. Brand Transformation: Dhanbank is in process to strengthen its brand in the market. Ogilvy & Mather and Fitch have been appointed as marketing consultants; this would help the bank to reach to the new customers and to strengthen its brand image in the market. Dhanbank has appointed Ogilvy & Mather as its agency for the banking business to chart out a new brand proposition and communication strategy. O&M, Indias leading communication agency will help the Bank to design and implement a comprehensive go-to market communication approach. The agency will help the Bank in its endeavor to create an entirely new customer experience and to incorporate a young and contemporary look across all customer touch-points. 3. Margins heading north: Improvement in margins might be seen in the near future on the basis of: Increase in CASA: Increase in number of branches is expected to bring in 900 to 1000 accounts daily; this would help to grow the CASA deposits. Dhanbank targets to achieve CASA of 30% in medium span of time. As CASA deposits are low cost deposits this would lead to lower cost of deposits.

GRAPH:-2.4- INCREASE IN CASA

Increase in NRI deposits: At present out of the total deposits, the NRI deposits are approx. 6%. Dhanbank has its major presence in Kerala and this area has huge potential of NRI deposits. Dhanbank plans to
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tap as much NRI deposits as possible, as these are low cost deposits. A special NRI deposit handling team is setup to tap this category of deposits . Yield on Investments: In FY2008-09, yield on investments went down as Dhanbank had major holding in T-bills. Now Dhanbank plans to invest in the government securities, this is expected to increase the yield on investments, as the govt. securities yield better returns than Tbills. Repricing of deposits to decrease cost of deposits: In the present low interest rate scenario, Dhanbank is to benefit from the repricing of deposits. This will decrease the cost. Repricing could continue benefiting bank up to 1 year. 4. Venture into new business segments: Fee & Commission based business would be the focus of Dhanbank. This category of income leads to higher ROE & EPS as it does not require capital expenditure and it leads to regular stream of income. Dhanbank has taken various initiatives to increase its other income sources. With the increasing number of branches and deeper reach to retail clients would be a catalyst for the income from Fee & commission based income. Insurance distribution: Dhanbank has got into a tie up with Bajaj Allianz for its Life Insurance & general insurance product distribution. A special team of 300 marketing officers is set-up for insurance distribution business. Mutual fund distribution: As part of their wealth management, Dhanbank intends to distribute leading mutual fund schemes. Professional would be joining for MF product distribution and the bank would have a similar strategy as in case of its insurance distribution business. Other Products: Dhanbank is expected to come up with new products like gold coins, Travelers cheques, and forex services. The bank plans to offer 3in1 account whereby the customer would be provided with the routine banking relationship (Savings A/C) along with Demat A/C and a trading platform.
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 AMC: Dhanbank is planning to get into Asset Management business. It is planning to enter the asset management business by buying into an existing fund, the investment is likely to be around Rs15-20 Cr. to buy stake in an existing AMC. Venture Capital: The bank is also looking at setting up a wholly-owned venture capital firm soon. Bank would put in about Rs.2000 Cr. in VC to invest in new start ups. The expected annual return from VC business is approx. 25%. PRODUCT SUITE:Following chart shows the various products and services offered by DHAN LAXMI BANK-

Figure:-2- PRODUCT SUITE OF DHAN BANK

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PRODUCTS AND SERVICES OF DHAN BANK:1.Personal Banking

Accounts:- Saving Account, Current Account, Term Deposit Loans:-Personal Loans, Home Loans, Auto Loans, Other Loans Depository Services Locker Facilities Forex Services:- Foreign Currency Cash, Cheque Deposits, Foreign Currency DD, Remittances. 2.Corporate Bankng

Cash Management (CMS) Credit:- Industrial Advance, Trade Advance, Import Export, Agriculture Assistance Salary Account Forex & Trade:-Forex Services, Export Services, Import Services

3.NRI Banking

Accounts & Deposits:- NRE Account, NRO Account, Recurring & TD, FCNRY FD, Returning NRIs Money Transfer:-Draft Drawing, Rupee Drawing, Money Transfer, Overseas Corresp. NRI Home Loan Investments:-Portfolio, Repatriation, Non-repatriation, Immovable properties.

4. Micro & Agri Banking

Dhanam Kissan Vahana Kissan Card Agri gold Loan Micro Credit - MFI Micro Credit - SHGs 5. Financial Planning

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TABLE:2.1-COMPARISON OF RETAIL PRODUCT FEATURES:S.N o.

1

FEATURE
AVERAGE MONTHLY BALANCE DEBIT CARD FACILITY MOBILE BANKING RTGS/NEFT

ICICI BANK
VARY AS PER PRODUCT FREE CHARGEABLE ON CHARGE BASIS Rs. 50 PER CHEQUE

HDFC BANK
VARY AS PER PRODUCT FREE

AXIS BANK YES BANK

VARY AS PER PRODUCT FREE VARY AS PER PRODUCT FREE CHARGEA BLE ON CHARGE BASIS Rs. 50 PER CHEQUE

DHANLAXMI
VARY AS PER PRODUCT FREE FREE BOTH 5-5 FREE PER MONTH

2 3 4

CHARGEABLE CHARGEABLE ON CHARGE BASIS Rs. 50 PER CHEQUE ON CHARGE BASIS Rs. 50 PER CHEQUE

6 7 8 9

COLLECTION OF OUTSTATION CHEQUES DERMAND DRAFT INTERNET BANKING SALARY ACCOUNT SWEEP IN AND AWEEP OUT FACILITY STOP PAYMENT PAY ORDERS

AS PER RBI NORMS FREE YES IN SOME ACCOUNTS

AS PER RBI NORMS FREE YES NO

AS PER RBI NORMS FREE YES NO

FREE 5 OUTSTATION CHEQUES PER MONTH AS PER RBI 5 D.D. FREE PER NORMS MONTH FREE YES NO FREE YES YES,FREE

10 11

CHARGEABLE CHARGEABLE AS PER NORMS YES

CHARGEABLE CHARGEABLE CHARGEABLE CHARGEABLE AS PER AS PER NORMS NORMS YES 7.5% YES 7.25%

CHARGEA BLE CHARGEA BLE AS PER NORMS YES 7%

FREE TO SOME EXTENT 5-25 P. O .FREE PER MONTH

12 13

BILL PAYING FACILITY

YES 7.75%

14

INTEREST ON 7% FIXED DEPOSIT FOR LESS THAN 1.5 YR ANY YES BRANCH BANKING

YES

YES

YES

YES

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TABLE:-2.2-COMPARISON OF SERVICES OFEERED

S.No FEATURE .
1 MUTUAL FUND INVESTMENT

ICICI BANK
YES,ICICI DYNAMIC,ICIC I GROWTH etc. ICICI LOMBARD ICICI LIFE INSURANCE YES YES YES YES YES YES

HDFC BANK
YES,HDFC TOP 200

AXIS BANK
YES

YES BANK
YES

DHANLAXMI
THIRD PARTY PRODUCTS

2 3 4 5 6 7 8 9

GENERAL INSURANCE LIFE INSURANCE NRI BANKING AGRI BANKING HOME LOANS CORPORATE LOANS OTHER CREDIT SERVICES CUSTOMER CARE DEPARTMENT CREDIT CARD FACILITY ONLINE TRADING

YES YES YES YES YES YES YES YES

YES YES YES YES YES YES YES YES

YES YES YES YES YES YES YES YES

THIRD PARTY PRODUCTS THIRD PARTY PRODUCTS YES ONLY IN SOUTH INDIA ONLY IN SOUTH INDIA YES ONLY IN SOUTH INDIA YES

10 11

YES YES

YES YES

YES YES

YES YES

12 13

INTERNET BANKING MOBILE BANKING

YES YES

YES YES

YES YES

YES YES

ONLY IN SOUTH INDIA YES, IN ALLIANCE WITH DESTIMONEY SECURITIES LTD. YES YES

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COMPETITOR ANALYSIS AT A GLANCE:-

S.No.

FEATURE

ICICI BANK HDFC BANK

1544 1725

AXIS BANK
905

YES BANK
150

DHANLAX MI
273

BRANCHES

ATM

4816

4232

3894

216

453

MARKET CAPITALIZATION IN CRORE Rs. TOTAL ASSETS

100,180.00

94,942.22

52996.04

9762.04

1149.27

286,059.77

139,011.39

156,748.35

31,688.89

6,795.02

NET SALES IN CRORE Rs. (RECENT) NET PROFIT IN CRORE Rs. (RECENT)

25,706.93

16,332.26

11,638.02

2,369.71

534.57

4024.98

2244.94

2514.53

477.74

23.30

Table:- 2.3

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MARKET SHARE ANALYSIS:Following table represents the current market capitalization of different private commercial banks.
NAME OF COMPANY

ICICI HDFC AXIS YES DHANLAXMI OTHERS TOTAL Table:-2.4

MARKET CAPITALIZATION In crore Rs. 100,180.00 94,942.22 52,996.04 9,72.04 1149.27 63952.16 322981.73

PERCENTAGE 31% 29% 16% 3% .03% 20.97% 100%

MARKET SHARE ANALYSIS ON THE BASIS OF MARKET CAPITALIZATION

31% 29%

20.97% 3% 16%

DHANLAXMI, 0.03%

ICICI

HDFC

AXIS

YES

DHANLAXMI

OTHERS

Graph:- 2.5-MARKET SHARE ANALYSIS Depiction:-ICICI is the market player of private commercial bank segment with highest market share of 31%. HDFC and AXIS bank are market followers with 29% & 16% market share respectively. Dhanlaxmi has very low market share in the segment (=0.03%), rest 20% share is from others including INDUSIND BANK, BANK OF RAJASTHAN, KOTAK MAHINDRA, FEDERAL BANK, KARNATAKA BANK etc.
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CHAPTER:-3 DATA ANALYSIS AND INTERPRETATION

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3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS OF THEIR NEEDS:KIND OF BANK PUBLIC SECTOR BANKS PRIVATE BANKS OTHERS NO. OF CUSTOMERS 35 55 10 PERCENTAGE 35% 55% 10%

Table-3.1
SAMPLE SIZE:-100

KINDS OF BANKS OPTED BY CUSTOMERS

55%

10% 35%

PUBLIC SECTOR BANK CUSTOMERS

PRIVATE BANK CUSTOMERS

OTHERS

Graph:-3.1 Depiction:-The survey depicts that around 55% customers have opted public sector banks, while 35% are the customers of private banks. Rest 10% is from others including foreign banks and cooperative banks customers. Interpretation:- A large no. of customers still dont have faith in private banks, they still avail public sector nationalized banks for their banking requirements. Private sector banks can target these customers with better strategies.

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3.2 CRITERIA OF SELECTING THE BANK FOR BANKING REQUIREMENTS:SELECTION CRITERIA REFERENCE PROXIMITY BRAND IMAGE PRODUCTS AND SERVICES NETWORKING NO. OF RESPONDENTS 19 30 08 22 21 PERCENTAGE 19% 30% 08% 22% 21%

Table:-3.2

SELECTION CRITERIA AS PER SURVEY

21%

19%
REFERENCE

22% 8%

PROXIMITY

30%
BRAND IMAGE PRODUCTS AND SERVICES NETWORKING

Graph:-3.2 Depiction:-As per survey about 30% respondents selected their bank on the basis of proximity of branch. Effective networking is the reason of selecting the bank for 21% customers, while 19% and 22% customers choosed their bank due to reference of known persons and products and services of the bank respectively. Rest 8% customers considered brand image of the bank while choosing it. Interpretation:-Survey depicts that proximity and products and services are the major factors which customer keeps in mind before selecting the bank. Some of the respondents selected the bank because it was referred to them by their relatives/friends etc.

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3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK CUSTOMERS:SATISFACTION LEVEL VERY SATISFIED SOMEWHAT SATISFIED SOMEWHAT DISSATISFIED VERY DISSATISFIED NO. OF RESPONDENTS 06 20 06 03 % 17% 60% 19% 4%

Table:-3.3

SATISFACTION LEVEL
VERY DISSATISFIED

4%

SOMEWHAT DISSATISFIED

18%

SOMEWHAT SATISFIED

60%

VERY SATISFIED

18%

VERY SATISFIED

SOMEWHAT SATISFIED

SOMEWHAT DISSATISFIED

VERY DISSATISFIED

Graph:-3.3 Depiction:-Satisfaction level of public sector bank customers is about 75% as per survey. Interpretation: - 25% respondents from public sector banks were not satisfied with the services. Some of the reasons for this dissatisfaction are as below: Poor customer relationship management Complex procedures.

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3.4 SATISFACTION LEVEL OF PRIVATE SECTOR BANK CUSTOMERS:SATISFACTION LEVEL VERY SATISFIED SOMEWHAT SATISFIED SOMEWHAT DISSATISFIED VERY DISSATISFIED NO. OF RESPONDENTS 24 20 6 5 % 47% 39% 12% 2%

Table:-3.4

SATISFACTION LEVEL
VERY DISSATISFIED

2%

SOMEWHAT DISSATISFIED

12%

SOMEWHAT SATISFIED

39%

VERY SATISFIED

47%

VERY SATISFIED

SOMEWHAT SATISFIED

SOMEWHAT DISSATISFIED

VERY DISSATISFIED

Graph:-3.4 Depiction:- Survey depicts that 47% respondents from private bank customers were very satisfied with the bank while around 40% were somewhat satisfied. Interpretation:- As per survey satisfaction level is higher in private bank customers as compared to customers from public sector bank. following are the reasons of dissatisfaction of private bank customers: Process delay. Service quality. Hidden charges. Behavior of the employees at branch.

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3.5 RELATION BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL:SELECTION CRITERIA REFERENCE PROXIMITY BRAND IMAGE PRODUCTS AND SERVICES NETWORKING NO. OF RESPONDENTS VERY SATISFIED RESPONDENTS PERCENTAGE

19 30 8 22 21

3 6 4 12 5

16% 20% 50% 54% 23%

Table:-3.5

ANALYSIS OF RELATIONSHIP BERWEEN SELECTION CRITERIA AND SATISFACTION LEVEL

100% 80% 60% 40%

50% 84% 80%

46% 77%

50%
20% 0% REFERENCE PROXIMITY BRAND IMAGE

54% 23%
PRODUCTS NETWORKING AND SERVICES OTHERS

16%

20%

VERY SATISFIED

Graph:-3.5 Depiction:-Survey depicts that those respondents who choosed their bank on the basis products and services, 54% out of them were very satisfied with their bank. Respondents who choosed their bank on the basis of its brand image, 50% out of them were very satisfied. Interpretation:-As per survey results there is a relation between selection criteria and satisfaction level. A private commercial bank has to be strong in terms of following factors for 100% customer satisfaction:1. Brand image
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2. Product differentiation

3. Network efficiency

3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES ABOUT NEW PRODUCT AND SERVICES
REGULAR UPDATES YES NO SOMETIMES NO. OF RESPONDENTS 64 17 19 PERCENTAGE 64% 17% 19%

Table:-3.6

ANALYSIS OF REGULAR PRODUCT UPDATES

19%

17% 64%

YES NO SOMETIMES

Graph:-3.6 Depiction:- As per survey 65% respondents say their bank give them regular updates on new products and services launched, while about 20% say their bank does not give them regular updates. Interpretation:-Regularly awaring the customer about new products and services or any change in existing one is an effective tool of service positioning.

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3.7 MOBILE BANKING AND INTERNET BANKING SERVICES: PATTERN OF USAGE

USE OF MODERN WAY OF BANKING NO. OF RESPONDENTS YES 37 NO 46 SOMETIMES 17

Table:-3.7

USE OF MOBILE AND INTERNET BANKING

NO 46% YES 37%

SOMETIMES 17%

YES

NO

SOMETIMES

Graph:-3.7 Depiction:- Survey depicts that only 35% respondents are using mobile banking and internet banking service regularly, whereas around 50% customers are still not using these services. Interpretation:- The reason behind lacking no. of mobile and e-banking users are : Hidden charges Unawareness. Complex procedures, etc
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3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR:AWARENESS LEVEL YES NO SOMEWHAT NO. OF RESPONDENTS 37 54 9 PERCENTAGE 37 54 9

Table:-3.8

AWARENESS LEVEL OF DHANLAXMI

SOMEWHAT

9%

NO

54%

YES

37%

YES

NO

SOMEWHAT

Graph:-3.8 Depiction:- As per survey 54% respondents said that they dont know about dhanlaxmi bank . 37% respondents said that they know about dhanlaxmi bank through their personal sources. Interpretation:- Awareness level of Dhanlaxmi Bank is not so high in Jaipur city. Advertisement campaign has not started thats why people know about it through their personal sources.

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3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT INCOME LEVELS:-

RISK TAKING ABILITY INCOME GROUP

HIGH

MODERATE

LOW

TOTAL

VERY HIGH HIGH MIDDLE

6 8 6

4 22 32

2 2 18

12 32 56

Table:-3.9
70

66% 57% 50%

60

50

40

34%
30

32% 25% 16% 9% 11%

20

10

0 VERY HIGH(>50000 MONTHLY) HIGH(30000-50000 MONTHLY) HIGH MIDDLE(<30000 MONTHLY) LOW

MODERATE

Graph:-3.9

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Depiction:- Survey depicts that : 50% respondents from very high income group can take high risk while investing, whereas around 35% respondents want to invest in those options which are less risky. Around 15% respondents from very this group wants to avoid risk while investing their money 65%customers from high income group are interested in investing those options having moderate risk whereas 20% can go for high risk categorized investment options; rest 15% wants to avoid the risk.

55% customers from middle income group can take moderate risk. Around 30% respondents want to avoid the risk of investment, rest 10% can go for high risky investment options.

Interpretation: As we go from very high income group to middle income group risk taking ability decreases. Customers from middle income group want to avoid investment in ULIPS, equity market and other equity market linked investment options.

Customers from very high income can take high risk while investing their money as compared to respondents from other income groups.

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3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT DIFFERENT LEVELS OF AGE:RISK TAKING ABILITY HIGH MODERATE AVOIDER <40 YEARS 15 26 8 >40 YEARS 5 31 15

Table:-3.10

RISK TAKING ABILITY

70%

61%
60%

50%
NO. OF RESPONDENTS 50%

HIGH RISK TAKER

40%

31%
30% 20% 10% 0% <40 YEARS

29% 19% 10%

MODERATE RISK TAKER RISK AVOIDER

>40 YEARS AGE GROUPS

Graph:-3.10 Depiction:- Survey depicts that: 31% respondents from, 40 yrs age group wants to invest money in high risky investment options. 50% wants to be in moderate risk category. Only 10% respondents from >40 age group want to put their money in high risk categorized options whereas around 30% want to avoid risk. Interpretation:- There is a relationship between risk taking ability and age of the respondent. Risk taking ability decreases with increasing age.

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SUMMARY OF FINDINGS AND SUGGESTIONS:FINDINGS:-

As per the survey conducted, it is to be noticed a good sector of the people prefer to be customers of nationalized banks. This result can be very well explained by the fact that nationalized banks are acquainted with the Government and that ups and downs in business will not affect the existence of the bank. Also the RBI too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. However it is also seen that a good percentage of people also opt for private banks such as ICICI, HDFC, AXIS bearing in mind the amount of experience they posses in the field of banking. Survey results show that customers from private sector banks are more satisfied as compared to customers from public sector banks. it was found that there is a direct relationship between brand image/product differentiation and satisfaction of the customer.

Customer demographic plays important role while preparing penetration strategies. Dhanlaxmi has the retail products with unique features which others dont have, but some of the services it is selling in alliance with third parties. Product line of Dhan Bank is not as diversified in Jaipur as their competitors have. Market share of Dhan Bank is not so high as compared to ICICI,HDFC,AXIS and YES BANK.

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SUGGESTIONS:-

The bank should introduce new delivery channels via opening more branches and ATMs in Jaipur to improve network efficiency. . Effective advertisement campaign can help the bank to increase business in Jaipur. TV commercials, Hoardings posters can be some of the mediums to increase the awareness of Bank in Jaipur.

Bank should launch the whole product line in Jaipur to emerge its position in competition. Bank should target 5 km area around the branch office because survey depicts that most of the customers selected their bank on the basis of proximity. Bank should constantly innovate their products as per customer requirements. Dhanlaxmi Bank should maintain the consistency in service quality for total customer satisfaction.

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SWOT ANALYSIS:

STRENGHTS

Serving customers since 1927 with loyalty and total dedication to customer services. A trusted Brand in South India.

Best F.D. rates among scheduled private commercial banks. Empowering the investors by giving them different schemes like free mobile and internet banking.

Centralized Flex cube system for any branch banking.

WEAKNESS:-

Less number of branches as compared to competitors. Less no. of ATMs. Lack of awareness of the brand in Jaipur. Only branch in Rajasthan.

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OPPORTUNITIES:-

Special permission from R.B.I. for unlimited free transactions from other banks ATM in Jaipur. Products are with excellent features which can help them to build strong business in Jaipur.

Effective Fixed Deposit rates can help them to increase business in Jaipur. Growing Indian banking sector.

People are becoming more service oriented

THREATS:-

Nationalized banks are growing fast. Competitors have diversified product range. Customers want to go with a known brand.

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BIBLIOGRAPHY:WEBSITES: www.dhanbank.com www.icicibank.com www.axisbank.com www.yesbank.com www.moneycontroll.com www.finance.india.mart.com www.banknetindia.com www.rbi.org www.moneycontrol.com www.google.com

BOOKS, JOURNALS: COMPANY BROCHURES ANNUAL REPORTES OF DHAN BANK BUSINESS ECONOMICS JOURNAL KOTHARI, C. R. ,RESEARCH METHODOLOGY CHAUDHARY,C.M., RESEARCH METHODOLOGY

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ANNEXURE:QUESTIONNAIRE
1. NAME3. E-MAIL5. EDUCATION 7. PROFESSIONA) SALARIED C) OTHERS Q. 1 WHICH BANK(S) YOU ARE USING FOR YOUR CURRENT BANKING REQUIREMENTS? Q. 2 WHICH BANKING PRODUCTS YOU ARE AVAILING? A) SAVING ACCOUNT D) FIXED DEPOSIT B) CURRENT ACCOUNT E) CREDIT C) LOCKER B) SELF EMPLOYED (..) 2. AGE 4. CONTACT 6. MONTHLY INCOME

Q.3 YOU CHOOSED YOUR BANK ON THE BASIS OFA) PROXIMITY D) REFRENCES B) NETWORKING E) TIMING C) PRODUCTS AND SERVICES F) BRAND IMAGE

Q.4 DO YOU USE THE MODERN AND SMART WAY OF BANKING? A) YES B) NO C) SOMETIMES

Q.5 DOES YOUR BANK GIVES YOU REGULAR UPDATES FOR NEW PRODUCTS AND SERVICES? A) YES B) SOMETIMES C) NO D) NEVER

Q. 6 HOW MUCH YOU ARE SATISFIED WITH THE SERVICES, YOUR BANK IS PROVIDING TO YOU? A) VERY SATISFIED C)SOMEWHAT DISSATISFIED B) SOMEWHAT SATISFIED D) VERY DISSATISFIED

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Q. 7 WOULD YOU LIKE TO GET SOME ADDITIONAL BENEFITS FROM YOUR BANK? A) YES B) NO

IF YES WHAT KIND OF? ................................................................................................................... Q. 8 WHAT KIND OF INVESMENT YOU ARE INTO FOR SECURING YOUR FUTURE? A) FIXED DEPOSIT D) SHARES/BONDS B) INSURANCE E) REAL ESTATES C) MUTUAL FUNDS F) OTHERS

Q. 9 WHAT IS THE PURPOSE OF YOUR INVESTMENT A) PROFITABILITY B) LIQUIDITY C) SECURITY D) TAX BENIFIT

Q. 10 WHAT IS YOUR PREFERENCE FOR INVESTMENT, STARTING FROM 1ST RANK TO SUBSEQUENT RANKINGS? MUTUAL FUNDS (.) REAL ESTATE (.) INSURANCE (.) GOLD (.)

SHARES/BONDS (.)

FIXED DEPOSITS (.)

Q.11 HOW MUCH YOU SPEND YEARLY TOWARDS INVESTMENT ACTIVITIES? A) LESS THAN 1 LAC C) B/W 2-3 LACS B) B/W 1-2LACS D) MORE THAN 3 LACS

Q. 12 DO THE INSURANCE PLAN YOU ARE INTO COVERING YOUR RISK PROPERLY? A) NO B) YES

IF NO / YES, HOW? ......................................................................................................... Q. 13 HAVE YOU EVER HEARD ABOUT DHANLAXMI BANK? A) YES B) NO

IF YES, HOW DID YOU COME TO KNOW ABOUT THE BANK?

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