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Following students are successfully completed the project on a subject of 7Ps of development banks we all are thank you to Prof. Mr. Vikram Trivedi. For giving this opportunity. Bhagyashree A. Mane. Supriya R. Pawar. Pooja V. Kalal. Pragati G. Singh. Supriya M. Palsamkar.








1. Bhagyashree A. Mane. 2. Supriya R. Pawar. 3. Pooja V. Kalal. 4. Pragati G. Singh. 5. Supriya M. Palsamkar.

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Mr. Vikram Trivedi.


For completing this project we are visited to idbi bank and & get necessary information about the bank. Visited to: IDBI BANK BRANCH-VASAI (W) MANEGER-_____________ SIGN- ___________

We, the student of Third Year B.com (Banking & Insurance) have completed the project on Marketing of banking & Insurance. As such, the project work is so, complicated without guidance of professors it would have been impossible to take such a task. Here by, we take this opportunity to express our sincere acknowledgement for successful completions of project on 7Ps of development banks We are grateful to our project guide Mr.Vikram Trivedi. As it was a team work. We acknowledge the invaluable support, advice instruction, and essential motivation of our professor.

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Meaning & introduction Definition Development Banks in India IDBI BANK

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5. 6. 8. 9.

Profile of IDBI bank 7Ps of IDBI bank Conclusion Bibliography

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Meaning of Development Banks

Development banks are specialized financial institutions. They provide medium and long-term finance to the industrial and agricultural sector. They provide finance to both private and public sector. Development banks are multipurpose financial institutions. They do term lending, investment in securities and other activities. They even promote saving and investment habit in the public.

Definition of Development Banks

The definition of the term 'development banks' can be stated as follows, 1. In General sense, "Development banks are those financial institutions whose prime goal (motive) is to finance the primary (basic) needs of the society. Such funding results in the growth and development of social and economic sectors of the nation. However, needs of the society vary from region to region due to differences seen in its communal structure, economy and other aspects." 2. As per Banking subject (mainly in Indian context), "Development banks are financial institutions established to lend (loan) finance (money) on subsidized interest rate. Such lending is sanctioned to promote and develop important sectors like agriculture, industry, import-export, housing and allied activities."

Development Banks in India

Development banking was started after the World War II. It provided finance to reconstruct the buildings and industries which were destroyed in the war. In India, development banking was started immediately after independence. The arrangement of development banks in India is depicted below.

Development banks in India are classified into following four groups: 1. Industrial Development Banks : It includes, for example, Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), and Small Industries Development Bank of India (SIDBI).

2. Agricultural Development Banks : It includes, for example, National Bank for Agriculture & Rural Development (NABARD).

3. Export-Import Development Banks : It includes, for example, Export-Import Bank of India (EXIM Bank).

4. Housing Development Banks : It includes, for example, National Housing Bank (NHB).

Industrial Finance Corporation of India (IFCI) is the first development bank in India. It started in 1948 to provide finance to medium and large-scale industries in India.


IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI Bank has essayed a key nation-building role, first as the apex Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full-service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of services that contributed towards balanced geographical spread of industries, development of identified backward areas, emergence of a new spirit of enterprise and evolution of a deep and vibrant capital market. On October 1, 2004, the erstwhile IDBI converted into a Banking company (as Industrial Development Bank of India Limited) to undertake the entire gamut of Banking activities while continuing to play its secular DFI role. Post the mergers of the erstwhile IDBI Bank with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of the erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-savvy, new generation Bank with majority Government shareholding today touches the lives of millions of Indians through an array of corporate, retail, SME and Agri products and services. Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a highly competent and dedicated workforce and a state-of-the-art information technology platform, to structure and deliver personalized and innovative Banking services and customized financial solutions to its clients across various delivery channels. As on March 31, 2012, IDBI Bank has a balance sheet of Rs.2.91 lakh crore and business size (deposits plus advances) of Rs.3.92 lakh crore. As an Universal Bank, IDBI Bank, besides its core banking and project finance domain, has an established presence in associated financial sector businesses like Capital Market, Investment Banking and Mutual Fund Business.


1. Products:
IDBI Bank Ltd. offers need-based products to eligible corporate in its Corporate Banking segments as under: Personal Banking Deposits Loans Payments - Tax Payments, Stamp Duty Payments, Easy Fill, Bill Payment, Card to Card Money Transfer, PayMate, Online Payments Mutual Fund Demat Account IPO Insurance Family Care, Weathsurance Cards - Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-ATM Card, World Currency Card Institutional Banking Lockers India Post NRI Services Phone Banking SMS Banking Account Alerts Internet Banking Corporate Banking Syndication, Underwriting & Advisory Services Project Finance Infrastructure Finance Carbon Credits Business Cash Management Services Trade Finance Tax Payments


Derivatives Technology Up gradation Fund Scheme (TUFS) Film Financing Scheme Direct Discounting Bills Rehabilitation Finance Others SME Finance Agri-business Products

Promotion mix includes advertising, publicity, sales promotion, word of mouth promotion, personal selling and telemarketing. Each of these services needs to be applied in different degree. These components can be useful in the banking business in the following ways: Advertising Advertising is paid form of communication. Banking organizations use this component of the promotion mix with motto of informing, sensing and persuading the customers. While advertising it is essential to be aware of key decision making areas so that instrumentally helps banks at micro and macro levels. Finalizing the budget: This is related to the formulation of the budget for advertisement. The bank professionals, senior executives and even the policy planners are found to be involved in the process. The business of a bank determines the scale of the advertisement budget.


Selecting a suitable vehicle: There are a number of devices to advertise, such as broad cast media, telecast media and print media. In the face of the budgetary provisions, it is necessary to select a suitable vehicle. For promoting the banking business, the print media is found to be economic as well as effective. Making possible creative: The advertising professionals bear the responsibility of making the appeals, slogans and messages more creative. Here, creative means making the advertisement programs distinct to the competitive organizations, which are active in influencing the impulse of the customers and successful in informing and sensing the customers. This requires an in-depth knowledge of the receiving capacity of the target market for which the advertisements are designed. Testing the effectiveness: It bears an analogous significance that our advertisements are effective in influencing the impulse of customers by energizing persuasion. For making the process effective, it is essential to test the effectiveness before launching of the commercial advertisements. Instrumentality of branch managers: At micro level, a branch manager bears the responsibility of advertising locally so that the messages reach the target audience. Characters and themes: At apex level it is also important that while advertising the senior executives watch the process minutely and select events, characters having a regional orientation. The popular characters

and sensational moments are likely to be impact generating. The theme for appeals and messages also needs due attention. Of course, they have a legitimate right of advertising but it is not meant that like the goods manufacturing organizations, the service generating organizations also start making invasion on culture. It is necessary to regulate a bias to gender, profession, region or so. Public relations: In the banking services the effectiveness of public Relations is found in high magnitude. It is in this context that difference is found in designing of the mix for promoting the banking services. Telemarketing: The telemarketing is a process of promoting the business with the help of sophisticated communication network. Telemarketing is found instrumental in advertising the banking services and the banking organizations can use this tool of the promotion mix both for advertising and selling. This minimizes the dependence of banking organizations on sales people and just a counter or center as listed in the call numbers may service multidimensional services. Telemarketing is likely to play an incremental role in marketing the banking services. The leading foreign banks and even some of the private sector commercial banks have been found promoting telemarketing and they have been getting positive results for their efforts. Word-Of- Mouth: Much communication about the banking services actually takes place by word- of- mouth information, which is also known as

word- of- mouth promotion. The oral publicity plays an important role in eliminating the negative comments and improving the services. This also helps the banker to know the feedback, which may simplify the task of improving the quality of services. This component of promotion mix is not to influence budget adversely or generate additional financial burden. By improving the quality of services and by offering small gifts to the word- of- mouth promoters, bankers can get more business command in their area. The above facts make it clear that such kind of promotion is influenced by a number of factors. The most dominating factor is the quality of services offered. The bank professionals, the frontline staff and the senior executives should realize that degeneration in quality would make this tool effective.

In the formulation of marketing mix, the pricing decisions occupy a place of outstanding significance. The pricing decisions include the decisions related to interest and fee or commission charged by banks. Pricing decisions are found instrumental in motivating or influencing the target market. The RBI regulates the rate of interest and the Indian Banks Association controls other charges. In our country, the price mix is more important because the banking organizations are also supposed to sub serve the interests of the weaker sections and the backward regions. Also in making the pricing decisions, the Government of India instrumentalists or commands everything as a shadow policy maker. This also complicates the price mix for banking sector. The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is

important that banks attempt to establish a correlation between two. It is essential that both the buyers as well as the sellers have feeling of winning. POWER PLUS ACCONT: We bring to you a product that reflects and matches your financial needs and requirements at every step. Power Plus account allows you to access a complete suite of product and services and enjoy world class banking experience, complimenting your professional and personal goals. This account helps you take complete charge of your banking by providing multiple channel and products and a wide range of benefits to help your time and money. We have a set of alternate channels to meet your needs ATM's, Phone banking, Mobile banking, Internet banking. 25% discount on locker rates. 10 other banks ATM transaction free. Any branch cash withdrawal and deposit limit is Rs.1,00,000/- per day. Free demand draft within network. No statement charges. Super Savings Account Instant Banking International Debit Card Family Account Quick Money Transfer Easy Payments Bank on the Move Profit from your Account Value Added Services All these features are offered for a minimum balance of Rs 5,000.


4. Place
Place mix is the location analysis for banks branches. There are number a factors affecting the determination of the location of the branch of bank. It is very necessary a bank to situated at a location where most of its target population is located. Some of the important factors affecting the location analysis of a bank are: 1. The trade area 2. Population characteristics 3. Commercial structure 4. Industrial structure 5. Banking structure 6. Proximity to other convenient outlets 7. Real estate rates 8. Proximity to public transportation 9. Drawing time 10. Location of competition 11. Visibility 12. Access 1. The Trade Area: The trade area is a very important factor determining the place where a bank branch should be set up. For e.g. a particular location maybe a huge trading place for textiles, diamonds or for that case even the stock market. Such locations are ideal for setting up of bank branches. 2. Population Characteristics: The demography of a place is a very important factor. This includes: The income level of the population

The average age The average male female population The caste, religion, culture and customs The average spending and saving habit of the people. These factors are very important for a bank as the help them decide the kind of business the branch will get. 3. Commercial Structure: The commercial structure refers to the level of commerce i.e. business activities taking place at a particular location. The higher the level of business activities taking place in a particular location the more preferable it is for setting up a bank branch. 4. Industrial Structure: This is nothing but a combination of the trade area analysis and the commercial structure. However the industrial structure focuses more on the kind of industries operating in a particular location. For example, an area like SEEPZ is marked with a lot of electronic manufacturing units. 5. Banking Structure: The Banking structure refers to the existence of other banks in the area. Whether there is already an efficient network of other bank branches operating at that particular area. Thus the overall infrastructure needed for the working of a bank. 6. Proximity of other convenient outlets: This refers to the other branches of the same bank as well other commercial, entertainment and industrial outlets. 7. Real Estate Rates: This is mainly dealing with the cost factor involved in opening up a bank branch at a particular location. The real estate rate is a very strong factor influencing the location decision for a bank branch.


8. Proximity to public transportation: The location should be proximate to public transportation facilities. This means it should have bus stops close by as well as it should be proximate to railway stations so as to make it convenient for the common man . 9. Drawing Time: Drawing time refers to the time period during which a customer can draw money from the banks. It should be convenient to the customer and somewhat flexible to accommodate the customers needs. No bank has more than a certain amount with them and in case a customer wants to withdraw an amount more than that available with the bank, the bank needs to draw that amount from other banks. Hence, a location must be such that it facilitates minimum drawing time. 10. Location of Competition: The existence of other banks also means competition. If the level of competition is very high in a particular location, it is necessary that a bank does a lot of market research before opening a branch so as to estimate the kind of business it would get. 10. Visibility: The location of a branch should be such that it is visible and easily noticed by the customers as well other people. 11. Access: The bank branch should be very easily accessible to the customers. If this is not the case, the customer might switch to some other bank, which is more convenient to him and very easily accessible. The location should be such that it is very convenient for the customer to reach.


Sophisticated technologies no doubt, inject life and strength to our efficiency but the instrumentality of sophisticated technologies start turning sour id the human resources are not managed in a right fashion. We cant deny the fact that if foreign banks are performing fantastically; it is not only due to the sophisticated information technologies they use but the result of a fair synchronization of new information technologies and a team of personally committed employees. The moment they witness lack of productive human resources even the new generation of information technologies would hardly produce the desired results. In addition to the professional excellence, the employees working in the foreign banks are generally value- based. Thus we accept the fact that generation of efficiency is substantially influenced by the quality of human resources. The quality for banking sector is an aggregation of all the properties, which are found essential for generating the efficiency and projecting a fair image. Even efficiency essentially is supported by ethical dimension, humanity and humanism. The development of human resources makes the ways for the formation of human capital. Human resources can be developed through education, training and by psychological tests. Even incentives can inject efficiency and can motivate people for productive and qualitative work.


Flow of activities: All the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. The activities have been segregated into various departments accordingly. Standardization: Banks have got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms, documentations etc. Standardization saves a lot of time behind individual transaction. Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. Number of stores: Numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Simplicity: In banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further.

Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires.



The physical evidences include signage, reports, punch lines, other tangibles, employees dress code etc. The companys financial reports are issued to the customers to emphasis or credibility. Even some of the banks follow a dress code for their internal customers. This helps the customers to feel the ease and comfort: Signage: each and every bank has its logo by which a person can identify the company. Thus such signages are significant for creating visualization and corporate identity. Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks, cheque books, etc reduce the inherent intangibility of services. Punch lines: punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers. Banking marketing consists of identifying the most profitable markets now and in future, assessing the present and future needs of customers, setting business development goals, making plans-all in the context of changing environment.


IDBI Bank is aware of the importance of retail Banking business and its strength in improving their bottom line. It is the quality of products, level of technology and speed of services rendered which is going to be the deciding factor. It will have to differentiate from other Banks offering similar products to the customers. With blossoming consumerism in India, retail banking has come to stay and in the scene of close competition, the common consumer is the ultimate beneficiary in terms of quality and cost. As more and more players chant the mantra of retail Banking, IDBI needs to provide customer a choice of options at the lowest cost to choose from. With the barriers for Internet Banking diminishing new players will gain the market access and provide similar services to customers making the existing players to be ever vigilant and look out for choices. In this fierce war for higher market shares in retail segment the only beneficiary is the customer. We can say that customer is the king for banks nowadays.



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Marketing in banking &

insurance -Vipul Prakashan