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A

Project Study Report

On

Titled

“A Comparative study on the Role of Service Marketing in Banking Sector


(National Bank & Private Bank ) ”

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted By: Submitted To:

GIRISH GAUD Mr. Vikas Mahalawat

MBA 2nd year Faculty of M.B.A.

ulty of M.B.A.

2009-2011
1
MODERN INSTITUTE OF TECHNOLOGY & RESEARCH CENTRE

6th mile stone, Sirmoli Road, Vill- Jharkhera (Alwar)

DECLARATION

I, “GIRISH GAUD” a Student of M.B.A – IV Semester 2011 “MODERN


INSTITUTE OF TECHNOLOGY & RESEARCH CENTER, Alwar” Here by
declare that Project Report under the title of “A Comparative study on the Role
of Service Marketing in Banking Sector(National Bank & Private Bank) ” is
the record of my original work under the guidance of Mr. Vikas Mahalawat
,Reader, (Faculty of M.B.A), M.I.T.R.C, Alwar. This report has never been
submitted to any else for award of any degree or diploma.

Place: Alwar GIRISH GAUD

Date: -………………….. MBA IVSEMESTER

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ACKNOWLEDGEMENT

In order to complete any project successfully, functional


environment & proper guidance of the expert on the subject is inevitable.
I am really indebted to my faculty of MBA department
Mr. Vikas Mahalawat under whose guidance I could conduct the research on “A
Comparative study on the Role of Service Marketing in Banking Sector
(Private and National Bank)” and prepare this project report.
I would also like to extend my sincere thanks to the employed,
businessmen, professional & any other respondents who have extended their
active cooperation while going through the survey on Private and National Bank.

GIRISH GAUD

MBA IV SEMESTER

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PREFACE

The practical study through, conducting the survey and doing project work has a
very significant value. The theoretical knowledge gained in classroom is not
fruitful and complete unless and until it is implemented on the practical work
either done in the field or inside the organization. It always boosts up our
knowledge in pursuing the theoretical studies. It is the internal part of our
curriculum to conduct survey and project work, which not only accelerates the
managerial skills in us but also broadens our practical prospective.
In view of above the survey on “A Comparative Study on the Role of Service
Marketing in Banking Sector (Private and National Bank)” has been
conducted and the project report is before the readers. If any part of this report is
taken up positively by the industry, I will feel that my effort was worthwhile.

***************

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EXECUTIVE SUMMARY

The rise of retail lending in emerging economies like India has been of recent
origin. Asia Pacific’s vast population, combined with high savings rates, explosive
economic growth, and underdeveloped retail banking services, provide the most
significant growth opportunities for banks. Banks will have to serve the retail
banking segment effectively in order to utilize the growth opportunity.
Banking strategies are presently undergoing various transformations, as the
overall scenario has changed over the last couple of years. Till the recent past,
most of the banks had adopted fierce cost cutting measures to sustain their
competitiveness. This strategy however has become obsolete in the new light of
immense growth opportunities for banking industry. Most bankers are now
confident about their high performance in terms of organic growth and in realising
high returns. Nowadays, the growth strategies of banks revolve around customer
satisfaction. Improved customer relationship management can only lead to
fulfillment of long-term, as well as, short-term objectives of the bankers. This
requires, efficient and accurate customer database management and
development of well-trained sales force to develop and sustain long-term
profitable customer relationship.
The banking system in India is significantly different from that of the other Asian
nations, because of the country’s unique geographic, social, and economic
characteristics. Though the sector opened up quite late in India compared to
other developed nations, like the US and the UK, the profitability of Indian
banking sector is at par with that of the developed countries and at times even
better on some parameters. For instance, return on equity and assets of the
Indian banks are on par with Asian banks, and higher when compared to that of
the US and the UK.

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TABLE OF
CONTENTS
Cover Page
Preface
Acknowledgement
Executive Summary
Contents
S. No. Topic Page no.

1. INTRODUCTION OF THE INDUSTRY 7

2. INTRODUCTION OF THE ORGANIZATION


3. INTRODUCTION OF THE 7P’s
4. 7P’s OF MARKETING
5. RESEARCH METHODOLOGY
 TYPE OF RESEARCH AND SAMPLE SIZE
 SCOPE OF STUDY
 LIMITATIONS OF PROJECT
6. FACTS & FINDINGS
7. ANALYSIS & INTERPRETATION
8. SWOT ANALYSIS
9. CONCLUSION
10. RECOMMENDATION & SUGGESTION

11. APPENDIX
12. BIBLIOGRAPHY

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1. Introduction to the Industry

1.1 Definition of Bank

Banking Means "Accepting Deposits for the purpose of lending or Investment of


deposits of money from the public, repayable on demand or otherwise and
withdraw by cheque, draft or otherwise."

Banking Companies (Regulation) Act, 1949

1.2 Origin Of The Word “Bank”


The origin of the word bank is shrouded in mystery. According to one view point
the Italian business house carrying on crude from of banking were called banchi
bancheri" According to another viewpoint banking is derived from German word
"Branck" which mean heap or mound. In England, the issue of paper money by
the government was referred to as a raising a bank.

1.3 Origin Of Banking


Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of
banking was developed as it provides the safer place to store the money. This
safe place ultimately evolved in to financial institutions that accepts deposits and
make loans i.e., modern commercial banks.

1.4 Banking system in India


Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it
should be able to meet new challenges posed by the technology and any other
external and internal factors.

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For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or

Cosmopolitans in India. In fact, Indian banking system has reached even to the
remote corners of the country. This is one of the main reasons of India's growth
process.

1.5 History Of Banking In India


Banking in India has its origin as early or Vedic period. It is believed that the
transitions from many lending to banking must have occurred even before Manu,
the great Hindu furriest, who has devoted a section of his work to deposit and
advances and laid down rules relating to the

rate of interest. During the mogul period, the indigenous banker played a very
important role in lending money and financing foreign trade and commerce.

During the days of the East India Company it was the turn of agency house to
carry on the banking business. The General Bank of India was the first joint stock
bank to be established in the year 1786. The other which followed was the Bank
of Hindustan and Bengal Bank. The Bank of Hindustan is reported to have
continued till 1906. While other two failed in the meantime. In the first half of the
19th century the East India Company established there banks, The bank of
Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843.
These three banks also known as the Presidency banks were the independent
units and functioned well. These three banks were amalgamated in 1920 and
new bank, the Imperial Bank of India was established on 27th January, 1921.

With the passing of the State Bank of India Act in 1955 the undertaking of the
Imperial Bank of India was taken over by the newly constituted SBI. The Reserve
Bank of India (RBI) which is the Central bank was established in April, 1935 by
passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai
and it controls all the other banks in the country. In the wake of Swadeshi
Movement, number of banks with the Indian management were established in
the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank of
Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country
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were nationalized and on 15th April 1980, 6 more commercial private sector
banks were taken over by the government.

The first bank in India, though conservative, was established in 1786. From 1786
till today,the journey of Indian Banking System can be segregated into three
distinct phases. They areas mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking


sector Reforms.

 `New phase of Indian Banking System with the advent of Indian Financial
& Banking Sector Reforms after 1991.

 To make this write-up more explanatory, I prefix the scenario as Phase I,


Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks, mostly Europeans
shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,
Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of
India came in 1935.

During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100 banks,
mostly small. To streamline the functioning and activities of commercial banks,

9
the Government of India came up with The Banking Companies Act, 1949 which
was later changed to Banking Regulation Act 1949 as per amending Act of 1965
(Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers
for the supervision of banking in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath
deposit mobilization was slow. Abreast of it the savings bank facility provided by
the Postal department was comparatively safer. Moreover, funds were largely
given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In1955, it nationalized Imperial Bank of India with extensive
banking facilities on a large scale especially in rural and semi-urban areas. It
formed State Bank of India to act as the principal agent of RBI and to handle
banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960
on 19th July,1969, major process of nationalization was carried out. It was the
effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major
commercial banks in the country was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in
India under Government ownership.

The following are the steps taken by the Government of India to Regulate
BankingInstitutions in the Country:

 1949: Enactment of Banking Regulation Act.


 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
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 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India
rose to approximately 800% in deposits and advances took a huge jump by
11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith
and immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are
being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift.
Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East
Asian Countries suffered. This is all due to a flexible exchange rate regime, the
foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customers have limited foreign exchange exposure.

1.6 Banks In India


In India the banks are being segregated in different groups. Each group has their
own benefits and limitations in operating in India. Each has their own dedicated
target market. Few of them only work in rural sector while others in both rural as
well as urban. Many even are only catering in cities. Some are of Indian origin
and some are foreign players.

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All these details and many more is discussed over here. The banks and its
relation with the customers, their mode of operation, the names of banks under
different groups and other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India.
The RBI has shown certain interest to involve more of foreign banks than the
existing one recently. This step has paved a way for few more foreign banks to
start business in India.

Banking Structure In India

Scheduled Banks In India

(1) Scheduled Commercial Banks

Public Sector Banks Private Sector Foreign Banks In Regional Rural


Banks India Banks

(26) (25) (29) (95)

 Nationalized  Old Private


Bank Banks
 Other Public  New Private
Sector Banks Banks
(IDBI)
 SBI And Its
Associates

(2) Scheduled Cooperative Banks

Scheduled Urban Cooperative Banks Scheduled State Cooperative Banks

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Public Sector Banks

Public sector banks are those banks which are owned by the Government. The
Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980
another 6 banks were also nationalized. Therefore in 1980 the number of
nationalized bank 20. At present there are total 26 Public Sector Banks in India
(As on 26-09-2009). Of these 19 are nationalized banks, 6(STATE BANK OF
INDORE ALSO MERGED RECENTLY) belong to SBI & associates group and 1
bank (IDBI Bank) is classified as other public sector bank. Welfare is their
primary objective.

Nationalized Banks Other SBI & its Associates


Public
Sector
• Allahabad Bank Banks • State Bank of India
• Andhra Bank
• Bank Of Baroda
• Bank Of India IDBI • State Bank of Hyderabad
• Bank Of Maharashtra (Industrial
• Canara Bank Development • State Bank of Mysore
• Central Bank Of Bank Of
India
India)Ltd.
• Corporation Bank • State Bank of Patiala
• Dena Bank
• Indian Bank
• Indian Overseas • State Bank of Travancore
Bank
• Oriental Bank Of
Commerce • State Bank of Bikaner And
• Punjab & Sind Bank Jaipur
• Punjab National
Bank
• Syndicate Bank
• UCO Bank
• Union Bank Of India
• United Bank Of India
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• Vijaya Bank (State Bank of Saurastra merged
with SBI in the year 2008 and State
Bank of Indore In 2010)

Private Sector Banks

These banks are owned and run by the private sector. Various banks in the
country such as ICICI Bank, HDFC Bank etc. An individual has control over there
banks in preparation to the share of the banks held by him.

Private banking in India was practiced since the beginning of banking system in
India. The first private bank in India to be set up in Private Sector Banks in India
was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in
India. IDBI ranks the tenth largest development bank in the world as Private
Banks in India and has promoted world class institutions in India.

The first Private Bank in India to receive an in principle approval from the
Reserve Bank of India was Housing Development Finance Corporation Limited,
to set up a bank in the private sector banks in India as part of the RBI's
liberalization of the Indian Banking Industry. It was incorporated in August 1994
as HDFC Bank Limited with registered office in Mumbai and commenced

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operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet
another Private Bank of India was incorporated in the year 1930

Private sector banks have been subdivided into following 2 categories:-

Old Private Sector Banks New Private Sector Banks

Bank of Rajasthan Ltd.


Catholic Syrian Bank Ltd.
City Union Bank Ltd. • Bank of Punjab Ltd. (since
Dhanalakshmi Bank Ltd. merged with Centurian Bank)
Federal Bank Ltd. • Centurian Bank of Punjab (since
ING Vysya Bank Ltd. merged with HDFC Bank)
Jammu and Kashmir Bank Ltd. • Development Credit Bank Ltd.
Karnataka Bank Ltd. • HDFC Bank Ltd.
Karur Vysya Bank Ltd. • ICICI Bank Ltd.
Lakshmi Vilas Bank Ltd. • IndusInd Bank Ltd.
Nainital Bank Ltd. • Kotak Mahindra Bank Ltd.
Ratnakar Bank Ltd. • Axis Bank (earlier UTI Bank)
SBI Commercial and International Bank • Yes Bank Ltd.
Ltd.
South Indian Bank Ltd.
Tamilnad Mercantile Bank Ltd.
United Western Bank Ltd.

Foreign Banks in India

 ABN AMRO Bank N.V.  HSBC (Hongkong &


 American Express Bank Shanghai Banking
 Bank of America Corporation)
 Bank of Ceylon  JPMorgan Chase Bank
 Bank of Nova Scotia  Krung Thai Bank
 Barclays Bank  Mashreq Bank
 Citibank  Mizuho Corporate Bank
 DBS Bank  Oman International Bank
 Deutsche Bank  Standard Chartered Bank
 State Bank of Mauritius

Cooperative banks in India

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The Cooperative bank is an important constituent of the Indian Financial System,
judging by the role assigned to co operative, the expectations the co operative is
supposed to fulfil, their number, and the number of offices the cooperative bank
operate. Though the co operative movement originated in the West, but the
importance of such banks have assumed in India is rarely paralleled anywhere
else in the world. The cooperative banks in India plays an important role even
today in rural financing. The businessess of cooperative bank in the urban areas
also has increased phenomenally in recent years due to the sharp increase in the
number of primary co-operative banks.
Co operative Banks in India are registered under the Co-operative Societies Act.
The cooperative bank is also regulated by the RBI. They are governed by the
Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act,
1965.

Rural banks in India

Rural banking in India started since the establishment of banking sector in


India. Rural Banks in those days mainly focussed upon the agro sector. Regional
rural banks in India penetrated every corner of the country and extended a
helping hand in the growth process of the country.
SBI has 30 Regional Rural Banks in India known as RRBs. The rural banks of
SBI is spread in

13 states extending from Kashmir to Karnataka and Himachal Pradesh to North


East. The total number of SBIs Regional Rural Banks in India branches is 2349
(16%). Till date in rural banking in India, there are 14,475 rural banks in the
country of which 2126 (91%) are located in remote rural areas. Apart from SBI,
there are other few banks which functions for the development of the rural areas
in India

Fact Files of Banks in India

The first Bank in India to be given an ISO certification. Canara Bank

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The first Bank in Northern India to get ISO 9002 Punjab and Sind Bank
certification

for their selected branches.

The first Indian Bank to have been started solely with Punjab National Bank
Indian capital.

The first among the Private Sector Banks in Kerala to South Indian Bank
become Scheduled Bank in 1946 under the RBI act.

India’s oldest,largest and the most successful State Bank of India


commercial bank offering the widest possible rang of
domestic,international and NRI products and
services,through its vast network in India and overseas.

India’s second largest Private Sector Bank and is now The Federal Bank
the largest scheduled commercial bank in India. Limited

Bank which started as Private Shareholders Imperial Bank of India


Banks,mostly European shareholders.

The first Indian Bank to open a branch outside India in Bank of India,
London in 1946 and the first to open a branch in
continental Europe at Paris in 1974 founded in 1906 in

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Mumbai.

The oldest Public Sector Bank in India having branches Allahabad Bank
all over India and serving the customers for the last 132
years.

The first Indian Commercial Bank which was wholly Central Bank of India
owned and managed by Indians.

1.7 Indian Banking Industry

The Indian banking market is growing at an astonishing rate, with Assets


expected to reach US$1 trillion by 2010. An expanding economy, middleclass,
and technological innovations are all contributing to this growth.

The country’s middle class accounts for over 320 million People. In correlation
with the growth of the economy, rising income levels, increased standard of
living, and affordability of banking products are promising factors for continued
expansion.

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The Indian banking Industry is in the middle of an IT revolution, Focusing on the
expansion of retail and rural banking. Players are becoming increasingly
customer -centric in their approach, which has resulted in innovative methods of
offering new banking products and services. Banks are now realizing the
importance of being a big playerand are beginning to focus their attention on
mergers and acquisitions to take advantage of economies of scale and/or comply
with Basel II regulation.“Indian banking industry assets are expected to reach
US$1 trillion by 2010 and are poised to receive a greater infusion of foreign
capital,” says Prathima Rajan, analyst in Celent's banking group and author of
the report.

02. INTRODUCTION OF THE ORGANIZATION

1. PUNJAB NATIONAL BANK

VISION

"To be a Leading Global Bank with Pan India footprints and become a household
brand in the Indo-Gangetic Plains providing entire range of financial products and
services under one roof"

MISSION

"Banking for the unbanked"

Origin

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Punjab under the British especially after annexation in 1849 witnessed a period
of rapid development giving rise to a new educated class fired with a desire for
freedom from the yoke of slavery. Amongst the cherished desires of this new
class was also an overriding ambition to start a Swadeshi Bank with Indian
Capital and management representing all sections of the Indian community. The
idea was first mooted by Rai Mool Raj of Arya Samaj who, as reported by Lal
Lajpat Rai, had long cherished the idea that Indians should have a national bank
of their own. He felt keenly "the fact that the Indian capital was being used to run
English banks and companies, the profits accruing from which went entirely to
the Britishers whilst Indians had to contend themselves with a small interest on
their own capital".
At the instance of Rai Mool Raj, Lala Lajpat Rai sent round a circular to selected
friends insisting on an Indian Joint Stock Bank as the first special step in
constructive Swadeshi. Lala Harkrishan Lal who had returned from England with
ideas regarding commerce and industry, was eager to give them practical shape.
On May 23, 1894, the efforts materialized. The founding board was drawn from
different parts of India professing different faiths and a varied back-ground with,
however, the common objective of providing country with a truly national bank
which would further the economic interest of the country.
The Bank opened for business on 12 April, 1895. The first Board of 7 Directors
comprised of Sardar Dayal Singh Majithia, who was also the founder of Dayal
Singh College and the Tribune; Lala Lalchand one of the founders of DAV
College and President of its Management Society; Kali Prosanna Roy, eminent
Bengali pleader who was also the Chairman of the Reception committee of the
Indian National Congress at its Lahore session in 1900; Lala Harkishan Lal who
became widely known as the first industrialist of Punjab; EC Jessawala, a well
known Parsi merchant and partner of Jamshedji & Co. of Lahore; Lala Prabhu
Dayal, a leading Rais, merchant and philanthropist of Multan; Bakshi Jaishi Ram,
an eminent Civil Lawyer of Lahore; and Lala Dholan Dass, a great banker,
merchant and Rais of Amritsar. Thus a Bengali, Parsi, a Sikh and a few Hindus
joined hands in a purely national and cosmopolitan spirit to found this Bank which
opened its doors to the public on 12th of April 1895. They went about it with a
Missionary Zeal. Sh. Dayal Singh Majithia was the first Chairman, Lala Harkishan

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Lal, the first secretary to the Board and Shri Bulaki Ram Shastri Barrister at
Lahore, was appointed Manager.
A Maiden Dividend of 4% was declared after only 7 months of operation. Lala
Lajpat Rai was the first to open an account with the bank which was housed in
the building opposite the Arya Samaj Mandir in Anarkali in Lahore. His younger
brother joined the Bank as a Manager. Authorised total capital of the Bank was
Rs. 2 lakhs, the working capital was Rs. 20000. It had total staff strength of nine
and the total monthly salary amounted to Rs. 320.
The first branch outside Lahore was opened in Rawalpindi in 1900. The Bank
made slow, but steady progress in the first decade of its existence. Lala Lajpat
Rai joined the Board of Directors soon after. in 1913, the banking industry in
India was hit by a severe crisis following the failure of the Peoples Bank of India
founded by Lala Harkishan Lal. As many as 78 banks failed during this crisis.
Punjab National Bank survived. Mr. JH Maynard, the then Financial
Commissioner, Punjab, remarked...."Your Bank survived...no doubt due to good
management". It spoke volumes for the measure of confidence reposed by the
public in the Bank's management.
The years 1926 to 1936 were turbulent and loss ridden ones for the banking
industry the world over. The 1929 Wall Street crash plunged the world into a
severe economic crisis.
It was during this period that the Jalianwala Bagh Committee account was
opened in the Bank, which in the decade that followed, was operated by
Mahatma Gandhi and Pandit Jawaharlal Nehru. The five years from 1941 to
1946 were ones of unprecedented growth. From a modest base of 71, the
number of branches increased to 278. Deposits grew from Rs. 10 crores to Rs.
62 crores. On March 31, 1947, the Bank officials decided to leave Lahore and
transfer the registered office of the Bank to Delhi and permission for transfer was
obtained from the Lahore High Court on June 20, 1947.
PNB was then housed in the precincts of Sreeniwas in the salubrious Civil Lines,
Delhi. Many a staff member fell victim to the widespread riots in the discharge of
their duties. The conditions deteriorated further. The Bank was forced to close 92
offices in West Pakistan constituting 33 percent of the total number and having

21
40% of the total deposits. The Bank, however, continued to maintain a few
caretaker branches.
The Bank then embarked on its task of rehabilitating the displaced account
holders. The migrants from Pakistan were repaid their deposits based upon
whatever evidence they could produce. Such gestures cemented their trusts in
the bank and PNB became a symbol of Trust and a name you can bank upon.
Surplus staff posed a big problem. Fast expansion became a priority. The policy
paid rich dividends by opening up an era of phenomenal growth.
In 1951, the Bank took over the assets and liabilities of Bharat Bank Ltd. and
became the second largest bank in the private sector. In 1962, it amalgamated
the Indo-Commercial Bank with it. From its dwindled deposits of Rs. 43 crores in
1949 it rose to cross the Rs. 355 crores mark by the July 1969. Its number of
offices had increased to 569 and advances from Rs. 19 crores in 1949 to Rs. 243
crores by July 1969 when it was nationalised.
Since inception in 1895, PNB has always been a "People's bank" serving millions
of people throughout the country and also had the proud distinction of serving
great national leaders like Sarvshri Jawahar Lal Nehru, Gobind Ballabh Pant, Lal
Bahadur Shastri, Rafi Ahmed Kidwai, Smt. Indira Gandhi etc. amongst other who
banked with us.
Punjab Keshari Lala Lajpat Rai (Saluting the spirit of our founding father)

(1865-1928)

The Life and Times of Lala Lajpat Rai


There are few leaders of the pre-independence era who, after having plunged
themselves into the political struggle, continued to take an active interest in
social, cultural and educational work. Lala Lajpat Rai was one of such leaders.
Born on 28th January, 1865 at a small village, Dhudike in the Ferozepur district
22
of Punjab, he belonged to the Agarwal Baniya caste and it was perhaps because
of this, in addition to taking part in social and political life of the country, he took
keen interest in industrial and financial matter also. His father was a teacher of
Persian and Urdu in a government school.
Having passed the final examination in Law from Punjab University, he started
his practice in1883, when he was barely 18 years old. Endowed with a rich
legacy of moral and intellectual background, Lala Lajpat Rai had benefit of
education in the practical rationalism of western science combined with the
religious purity and moral elevation of Eastern literature that put on him the
hallmark of true culture. While sympathizing with and aiding every movement
made for progress, Lala Lajpat Rai identified himself very closely with Arya
Samaj, in which he found ample scope for the exercise of his patriotism,
philanthropy and religious zeal.
Having qualified as a pleader, Lala Lajpat Rai started practice at Hissar and soon
became a leading lawyer of the district. He organized the Arya Samaj there and
put it on proper lines. In 1892, he transferred his practice to the wider field at
Lahore.Education, both secular and religious, was in Lala Lajpat Rai’s view an
important factor in national development. He took part in the foundation of the
D.A.V. College at Lahore.

Lalaji and Politics


Lala Lajpat Rai always felt drawn towards politics. It was in 1888 that he joined
the Indian National Congress when it met at Allahabad under the presidency of
Mr. G. Yule. In 1905, the Indian National Congress Committee having recognized
in him an austere, sincere and selfless devoted worker selected him as one of its
delegates to place before the British, the political grievances of the Indian people.
He met the expenses of his trip from his own pocket. He along with Gokhale
carried on the political campaign in various parts of England and brought home to
the mind of the British, the evils of an unsympathetic and bureaucratic
government under which India was labouring and pleaded in eloquent language,
adding facts and figures in supporting their contention, cause of the half starving
and half dying people of India. Lala Lajpat Rai created an impression on the
English Populace.

23
After his return from England, he was busy devising and organizing ways and
means for political advancement and industrial emancipation of the country.
The movement of “Swadeshi” was in the offing and he put his heart and soul into
it. He preached the message of Swadeshi to the people of Punjab and made it
very popular. This naturally enraged the bureaucracy and he came to be
regarded as a revolutionary by the Britishers and the Anglo-Indian press. He was
openly dubbed as a Revolutionary and an instigator of the armed forces.
The Jalianwala Bagh tragedy and the Government's denial to censure the
conduct of its officers made him a complete non cooperator. He lost his faith in
the British and threw himself whole heartedly into the non-cooperation
movement.In 1925, he joined the Swaraj Party and became its deputy leader. He
took active part in the deliberations of the debates of the Assembly. It was he,
who moved the resolution for the Boycott of the Simon Commission in the
Assembly. It was while leading the boycott procession at Lahore on the 30th
October, 1928 that he received lathi blows on his chest which ultimately brought
about his death on the 17th November, 1928.

Lala Lajpat Rai and PNB


Lalaji was keenly concerned with the fact that though Indian capital was being
used to run English Banks and companies, the profits went entirely to the British,
while Indians had to contend themselves with a small interest on their capital. He
echoed this sentiment in one of his writing while concurring with Rai Mul Raj of
Arya Samaj who had long cherished the idea that Indians should have a National
Bank of their own. At the instance of Rai Mul Raj, Lala Lajpat Rai sent a circular
to selected friends insisting on an Indian joint stock Bank as the first step in
constructive Swadeshi and the response was satisfactory
After filing and registering the memorandum and Articles of Association on 19
May, 1894, the bank was incorporated under Act VI of the 1882 Indian
Companies Act. The prospectus of the bank was published in the Tribune, and
the Urdu Akhbar-e-Am and Paisa Akhbar. On 23rd May, 1894, the founders met
at the Lahore residence of Sh. Dyal Singh Majithia, the first Chairman of PNB,
and resolved to go ahead with the scheme. They decided to hire a house in the
famous Anarkali Bazar of Lahore opposite the post office and near well known

24
stores of Rama Brothers.On 12th April 1895, the Bank opened for business, a
day before the great Punjab festival of Baishakhi. The essence of the Bank’s
culture was clear at this first meeting itself. The fourteen original shareholders
and seven directors took only a modest number of shares; the control of the
Bank was to lie with the large, dispersed shareholders, a purely professional
approach that was as uncommon then as it is today.

Profile:
With over 56 million satisfied customers and more than 5000 offices including 5
overseas branches, PNB has continued to retain its leadership position amongst
the nationalized banks. The bank enjoys strong fundamentals, large franchise
value and good brand image. Besides being ranked as one of India's top service
brands, PNB has remained fully committed to its guiding principles of sound and
prudent banking. Apart from offering banking products, the bank has also entered
the credit card, debit card; bullion business; life and non-life insurance; Gold
coins & asset management business.
Since its humble beginning in 1895 with the distinction of being the first Swadeshi
Bank to have been started with Indian capital, PNB has achieved significant
growth in business which at the end of March 2010 amounted to Rs 435931
crore. PNB is ranked as the 2nd largest bank in the country after SBI in terms of
branch network, business and many other parameters. During the FY 2009-10,
with 40.85% share of CASA deposits, the Bank achieved a net profit of Rs 3905
crore. Bank has a strong capital base with capital adequacy ratio of 14.16% as
on Mar’10 as per Basel II with Tier I and Tier II capital ratio at 9.15% and 5.01%
respectively. As on March’10, the Bank has the Gross and Net NPA ratio of
1.71% and 0.53% respectively. During the FY 2009-10, its ratio of Priority Sector
Credit to Adjusted Net Bank Credit at 40.5% & Agriculture Credit to Adjusted Net
Bank Credit at 19.7% was also higher than the stipulated requirement of 40% &
18% respectively.

The Bank has been able to maintain its stakeholders’ interest by posting an
improved NIM of 3.57% in Mar’10 (3.52% Mar’09) and a Return on Assets of
1.44% (1.39% Mar’09). The Earning per Share improved to Rs 123.98 (Rs 98.03

25
Mar’09) while the Book value per share improved to Rs 514.77 (Rs 416.74
Mar’09). Punjab National Bank continues to maintain its frontline position in the
Indian banking industry. In particular, the bank has retained its NUMBER ONE
position among the nationalized banks in terms of number of branches, Deposit,
Advances, total Business, Assets, Operating and Net profit in the year 2009-10.
The impressive operational and financial performance has been brought about by
Bank’s focus on customer based business with thrust on CASA deposits, Retail,
SME & Agri Advances and with more inclusive approach to banking; better asset
liability management; improved margin management, thrust on recovery and
increased efficiency in core operations of the Bank. The performance highlights
of the bank in terms of business and profit are shown below:

Rs. in Crore
Parameters Mar'08 Mar'09 Mar'10 CAGR (%)
Operating Profit 4006 5690 7326 22.29
Net Profit 2049 3091 3905 23.98
Deposit 166457 209760 249330 14.42
Advance 119502 154703 186601 16.01
Total Business 285959 364463 435931 15.09

PNB has always looked at technology as a key facilitator to provide better


customer service and ensured that its ‘IT strategy’ follows the ‘Business strategy’
so as to arrive at “Best Fit”. The Bank has made rapid strides in this direction. All
branches of the Bank are under Core Banking Solution (CBS) since Dec’08, thus
covering 100% of its business and providing ‘Anytime Anywhere’ banking facility
to all customers including customers of more than 3000 rural & semi urban
branches. The Bank has also been offering Internet banking services to its
customers which also enables on line booking of rail tickets, payment of utilities
bills, purchase of airline tickets, etc. Towards developing a cost effective
alternative channels of delivery, the Bank with more than 3700 ATMs has the
largest ATM network amongst Nationalized Banks.

With the help of advanced technology, the Bank has been a frontrunner in the
industry so far as the initiatives for Financial Inclusion is concerned. With its
policy of inclusive growth, the Bank’s mission is “Banking for Unbanked”. The

26
Bank has launched a drive for biometric smart card based technology enabled
Financial Inclusion with the help of Business Correspondents/Business
Facilitators (BC/BF) so as to reach out to the last mile customer. The Bank has
started several innovative initiatives for marginal groups like rickshaw pullers,
vegetable vendors, dairy farmers, construction workers, etc. Under Branchless
Banking model, the Bank is implementing 40 projects in 16 States.

Backed by strong domestic performance, the Bank is planning to realize its


global aspirations. Bank continues its selective foray in international markets with
presence in 9 countries, with 2 branches at Hongkong, 1 each at Kabul and
Dubai; representative offices at Almaty, Dubai, Shanghai and Oslo; a wholly
owned subsidiary in UK; a joint venture with Everest Bank Ltd. Nepal and a JV
banking subsidiary “DRUK PNB Bank Ltd.” in Bhutan. Bank is pursuing
upgradation of its representative offices in China & Norway and is in the process
of setting up a representative office in Sydney, Australia and taking controlling
stake in JSC Dana Bank in Kazakhastan.

2. INDUSTRIAL DEVELPOMENT BANK OF INDIA

IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge
core Banking IT platform. The Bank offers personalized banking and financial
solutions to its clients in the retail and corporate banking arena through its large
network of Branches and ATMs, spread across length and breadth of India. We
have also set up an overseas branch at Dubai and have plans to open
representative offices in various other parts of the Globe, for encashing emerging
global opportunities.
As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs
and plans to roll out another 300 branches during FY 2010-11. The Bank's total
business, during Fy 2009-10, reached Rs. 3.06 Lakh Crore (up by 41.7 %),
Balance sheet reached Rs. 2.34 Lakh Crore (up by 35.5 %) while it earned a net
profit of Rs. 1031 Crore (up by 20 %).

Our vision for the Bank is for it to be the trusted partner in progress, by

27
leveraging quality human capital and setting global standards of excellence, to
build the most valued financial conglomerate. Our experience of financial
markets helps us to effectively cope with challenges and capitalize on the
emerging opportunities by participating effectively in our country’s growth
process. Branches /

Profile of the Bank

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 personalised and
innovative Banking services and customised financial solutions to its clients
across various delivery channels.

As on March 31, 2010, IDBI Bank has a balance sheet of Rs.2.34 lakh crore and

28
business size (deposits plus advances) of Rs.3.06 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 and Investment Banking, Home Finance, Primary Dealership area and
more recently, the Life Insurance Business. As a step towards taking the
organization on a accelerated growth path, the Bank has reorganized its
businesses around nine verticals out of which six customer verticals, each
focusing on distinct customer segments and three business verticals. Going
forward, IDBI Bank is strongly committed to work towards emerging as the 'Bank
of choice' and 'the most valued financial conglomerate', besides generating
wealth and value to all its stakeholders.

Glorious History

Information on the Constitution of IDBI


Industrial Development Bank of India
Industrial Development bank of India (IDBI) was constituted under Industrial
Development bank of India Act, 1964 as a Development Financial Institution and
came into being as on July 01, 1964 vide GoI notification dated June 22, 1964. It
was regarded as a Public Financial Institution in terms of the provisions of
Section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40
years till the year 2004 when it was transformed into a Bank.

Industrial Development Bank of India Limited


In response to the felt need and on commercial prudence, it was decided to
transform IDBI into a Bank. For the purpose, Industrial Development bank
(transfer of undertaking and Repeal) Act, 2003 [Repeal Act] was passed
repealing the Industrial Development Bank of India Act, 1964. In terms of the
provisions of the Repeal Act, a new company under the name of Industrial
Development Bank of India Limited (IDBI Ltd.) was incorporated as a Govt.
Company under the Companies Act, 1956 on September 27, 2004. Thereafter,
the undertaking of IDBI was transferred to and vested in IDBI Ltd. with effect from
the effective date of October 01, 2004. In terms of the provisions of the Repeal

29
Act, IDBI Ltd. has been functioning as a Bank in addition to its earlier role of a
Financial Institution.

Merger of IDBI bank Ltd. with IDBI Ltd.


Towards achieving the faster inorganic growth of the Bank, IDBI Bank Ltd., a
wholly owned subsidiary of IDBI Ltd. was amalgamated with IDBI Ltd. in terms of
the provisions of Section 44A of the Banking Regulation Act, 1949 providing for
voluntary amalgamation of two banking companies. The merger became
effective from April 02, 2005.

Merger of United Western bank with IDBI Ltd.


The United Western bank Ltd. (UWB), a Satara based private sector bank was
placed under moratorium by RBI. Upon IDBI Ltd. showing interest to take over
the said bank towards its further inorganic growth, RBI and Govt. of India
amalgamated UWB with IDBI Ltd. in terms of the provisions of Section 45 of the
Banking Regulation Act, 1949. The merger came into effect on October 03 2006.

Change of name of IDBI Ltd. to IDBI Bank Ltd.


In order that the name of the Bank truly reflects the functions it is carrying on, the
name of the Bank was changed to IDBI Bank Limited and the new name became
effective from May 07, 2008 upon issue of the Fresh Certificate of Incorporation
by Registrar of Companies, Maharashtra. The Bank has been accordingly
functioning in its present name of IDBI Bank Limited.

30
INTRODUCTION OF 7P’s of Baking Market
Services marketing professionals must determine how to effectively
communicate the services process, deliverables, and benefits in order to build
client confidence. Tangible signals that indicate services quality and value come
from personal interaction, trusted recommendations, clear communications,
equipment used or processes followed, pricing.
Services marketing is marketing based on relationship
and value. It may be used to market a service or a product.Marketing a service-
base business is different from marketing a goods-base business.
There are several major differences, including:
1. The buyer purchases are intangible
2. The service may be based on the reputation of a single person
3. It's more difficult to compare the quality of similar services
4. The buyer cannot return the service

Service Marketing mix adds 3 more p's, i.e. people, physical evidence, process
service and follow-through are keys to a successful venture. The major difference
in the education of services marketing versus regular marketing is that instead of
the traditional "4 P's," Product, Price, Place, Promotion, there are three additional
"P's" consisting of People, Physical evidence, and Process. Service marketing
also includes the servicescape referring to but not limited to the aesthetic
appearance of the business from the outside, the inside, and the general
appearance of the employees themselves. Service Marketing has been relatively
gaining ground in the overall spectrum of educational marketing as developed

31
economies move farther away from industrial importance to service oriented
economies.

What is marketing?
Marketing is the flow of goods and services from the producer to consumer. It is
based on relationship and value. In common parlance it is the distribution and
sale of goods and services. Marketing can be differentiated as:
 Marketing of products.
 Marketing of services.
Marketing includes the services of all those indulged may it be then the
wholesaler retailer, Warehouse keeper, transport etc. In this modern age of
competition marketing of a product or service plays a key role. It is estimated that
almost 50% of the price paid for a commodity goes to the marketing of the
product in US. Marketing is now said to be a term which has no particular
definition as the definitions change everyday.
"Managing the evidence" refers to the act of informing customers that the service
encounter has been performed successfully. It is best done in subtle ways like
providing examples or descriptions of good and poor service that can be used as
a basis of comparison. The underlying rationale is that a customer might not
appreciate the full worth of the service if they do not have a good benchmark for
comparisons.
However, it is worth remembering that many of the
concepts, as well as many of the specific techniques, will work equally well
whether they are directed at products or services. In particular, developing a
marketing strategy is much the same for products and services, in that it involves
selecting target markets and formulating a marketing mix. Thus, "instead of
talking of 'goods' and of 'services', it is better to talk of 'tangibles' and

32
'intangibles'". Levitt also went on to suggest that marketing a physical product is
often more concerned with intangible aspects (frequently the `product service'
elements of the total package) than with its physical . sales after service is very
imporatant in service sector. properties. Charles Revson made a famous
comment regarding the business of Revlon Inc.: `In the factory we make
cosmetics. In the store we sell hope.' Arguably, service industry marketing merely
approaches the problems from the opposite end of the same spectrum.

7 P’s OF BANK MARKETING:-

1. Product Mix:-

The banks primarily deal in services and therefore ,the formulation of product mix
is required to be in the face of changing business environment conditions.Of
course the public sector commercial banks have launched number of policies
and programs for the development of backward regions and welfare of the
weaker sections of the society but at the same time it is also right to mention that
theire development-oriented welfare programs are not optimal to the national
socio economic requirements.A proportional contraction the number of
customers is psychology,the increasing expectation,the rising income,the
changing lifestyle, the increasing domination of foreign bans and the changing
needs and requirements of the customers at large make it essential that they
innovate their service mix and make them of worked class. The development of
new generic product, especially when the business environment is regulated is
found a difficult task. However, it is pertinent that banks formulate a package in
tune with the changing business conditions. Against this background, we find it
significant that the banking organizations minify, magnify, combine and modify
their service mix.
In the formulation of service mix, the banks can
follow two guidelines, first is related to the processing of product to market needs
and the second is concerned with the processing of market needs to product. In
the first process, the needs to the target market are anticipated and visualized
33
and therefore, we expect the prices likely to be productive. In the second
process, the banks react to the expressed needs and therefore we consider it
reactive. It is essential that every product is measured up to the accepted
technical standards. This is because no consumer would buy a product, which
contains technical faults. Technical perfection in service is meant prompt
delivery, quick disposal, and presentation of right data, right filing, proper
documentation or so. If computers start disobeying, the command and the
customers get wrong facts, the use of technology would be a minus point, and
you don’t have any excuse for your faults.
Marketing aims not only offering but also at
creating\innovating the services\schemes found new to the competitors vis-a vis-
to the customers. The enhanced customer patronage would be a reward to the
bank. The additional attractions, the product attractiveness would be a plus point
of your mix, which would help you in many ways. This makes it essential that the
banking organizations are sincere to the innovations process and try to enrich
their peripheral services much earlier than the competitors. We also find the
product portfolio of the banks. While formulating the services mix, it is also
pertinent that the bank professionals make possible affair synchronization of core
and peripheral services. To be more specific, the peripheral services need an
intensive care since the core services are found by and large the same.
Innovating the peripheral services thus appears to be an important functional
responsibility of marketing professionals. We can’t deny the fact that if the foreign
banks have been getting a positive response; the credibility goes to their
innovative peripheral services. Thus, the formulation of product mix is found to be
a difficult task that requires world-class professionalism.

PRODUCT

PNB IDBI

34
Banking and Savings
Banking and Savings
• Banking and Accounts
• Banking and Accounts
• Convenience Banking
• Convenience Banking
• Credit Cards
• Credit Cards
• NRI Services
• NRI Services
• Demat
• Demat
• Deposits
• Deposits

Corporate and Institutional


Corporate and Institutional
• Corporate Finance
• Corporate Finance
• Treasury
• Treasury
• Investment Banking
• Investment Banking
• Institutional Equities
• Institutional Equities

Investments and Insurance


Investments and Insurance
• Life Insurance
• Life Insurance
• Mutual Funds
• Mutual Funds
• Gold
• Gold
• Share Trading
• Share Trading


Loans and Borrowings
Loans and Borrowings
• Car Finance
• Car Finance
• Commercial Loans
• Commercial Loans
• Home Loans
• Home Loans
• Personal Loans
• Personal Loans
• Loans Against Property
• Loans Against Property
• Agriculture Loan

2. Promotional Mix:-

35
Promotion mix includes advertising, publicity, sales promotion, word-of-mouth
promotion ,personal selling and telemarketing, Each of these service needs to be
applied in different degree. These components can be useful in banling ,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. In addition, the intensity of competition also plays a
decisive role since in the majority of cases; we find a increase in the budget due
to a change in the competitor’s strategy.

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:

36
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.
Managers:Instrumentality of branch
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 multi- dimensional services.
Telemarketing is likely to play an incremental role in
marketing the banking services. The leading foreign banks and even some of the

37
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.

PROMOTION
PNB IDBI

Advertising: Advertising:
Television Television
Radio Radio
Movies Movies
Theatres
Print Media: Print Media:
Newspaper Hoardings
Magazines Newspaper
Magazines
Publicity: Publicity:
Campus Visits Campus Visits

38
Sponsorship Sponsorship

Sales Promotion: Sales Promotion:


Gifts Gifts
Personal Selling: Personal Selling:
Cross-Sale (Selling At Competitors Cross-Sale (Selling At
Place) Competitors Place)
Personalized Service Personalized Service

3. Price Mix:-

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
sinstrumental 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.

Pricing policy of a bank is considered important for raising the number of


customers vis-à-vis the accretion of deposits. Also the quality of service provided
has direct relationship with the fees charged. Thus while deciding the price mix
customer services rank the top position. Banks also have to take the value
satisfaction variable in to consideration. The value and satisfaction cannot be
quantified in terms of money since it differs from person to person. Keeping in
view the level of satisfaction of a particular segment, the banks have to frame the
pricing strategies.

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
39
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.

PRICE
PNB IDBI

The pricing decisions or the decisions related to interest and fee or commission
charged by banks are found instrumental in motivating or influencing the target
market.

The RBI and the IBA are concerned with regulations. The rate of interest is
regulated by the RBI and other charges are controlled by IBA

4. The People:-

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 can’t 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
40
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.

5. Place

PNB IDBI
5000 Branch
750 Branch
13780 ATM
1400 ATM

6. The Process:-

PROCESS
PNB IDBI

• 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

41
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.

7. The Physical Evidence:-

The physical evidences include signage, reports, punch lines, other tangibles,
employee’s dress code etc. The company’s 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 signage 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.

42
PHYSICAL EVIDANCE

PNB IDBI
• Internet/Web Pages • Internet/Web Pages
• Paperwork • Paperwork
• Brochures • Brochures
• Furnishings • Furnishings
• Business Cards • Business Cards
• Building • Building
• Signage • Signage
• Financial Reports • Financial Reports
• Tangibles • Tangibles
• Punch Lines • Punch Lines
• Employee’s Dress Code • Employee’s Dress Code

43
ROLE OF SERVICE MARKETING IN BANKING SECTOR:-

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.
Marketing approach in banking sector
had taken significance after 1950 in western countries and then after 1980 in
Turkey. New banking perceptiveness oriented toward market had influenced
banks to create new market. Banks had started to perform marketing and
planning techniques in banking in order to be able to offer their new services
efficiently.
Marketing scope in banking sector should be
considered under the service marketing framework. Performed marketing
strategy is the case which is determination of the place of financial institutions on
customers’ mind. Bank marketing does not only include service selling of the
bank but also is the function which gets personality and image for bank on its
customers’ mind. On the other hand, financial marketing is the function which
relates uncongenitalies, differences and non similar applications between
financial institutions and judgment standards of their customers.

The reasons for marketing scope to have importance in banking and for banks to
interest in marketing subject can be arranged as:

Change in demographic structure:- Differentiation of population in the number


and composition affect quality and attribute of customer whom benefits from
banking services. Intense competition in financial service sector: The competition
became intense due to the growing international banking perceptiveness and

44
recently being non limiting for new enterprises in the sector. Increase in
liberalization of interest rates has intensified the competition.
Bank’s wish for increasing profit: Banks have to increase their
profits to create new markets, to protect and develop their market shares and to
survive on the basis of intense competition and demographic chance levels.

STRUCTURE OF BANK MARKET:-

Marketing activities of firms begin with determination of the market that they offer
their services or goods. Firms must find out the features of the market that it f
anging market condition. While marketing manager is arranging the variables
under firm’s control, she/he should also adopt the external variables. We could
call the factors that affect banks’ market as technological developments, legal
arrangements and competition.

National Bank - PNB


Private Bank - IDBI

List of Private Banks in India :-


 Bank of Punjab
 Bank of Rajasthan
 Catholic Syrian Bank
 Centurion Bank
 City Union Bank
 Dhanalakshmi Bank
 Development
Credit Bank
 Federal Bank
 HDFC Bank
 ICICI Bank
 IDBI Bank
 IndusInd Bank
 ING Vysya Bank

45
 Jammu & Kashmir Bank
 Karnataka Bank
 Laxmi Vilas Bank
 South Indian Bank
 United Western Bank
 UTI Bank

National Banks :-The National Banks name are following:-


 Allahabad Bank
 Axis Bank
 Bank of Baroda
 Bank of Maharashtra
 Canara Bank
 Central Bank of India
 Dena Bank
 Indian Bank
 Orienta Bank of Commerce
 Punjab National Bank
 SBI
 State Bank of Mysore
 UCO Bank
 Vijaya Bank
 Punjab & Sind Bank
 State Bank of Bikaner& Jaipur
 State Bank of Hyderabad
 State Bank of Indore
 State Bank of Patiala
 State Bank of Travancore
 Syndicate Bank
 United Bank of India
 Tamilnad Mercantile Bank Ltd
 Lakshmi Vilas Bank

46
 Dhanalakshmi Bank Ltd

DEFINING OF THE PROBLEM:-

(2005), critics of Indian Regional Rural banks(RRBs) and their prevalling culture
have argued that a product-focused rather than a market-oriented approach to
new Service Development (NSD) is responsible for their inadequate
performance. Banking practioners need to be aware of the fact that market
orientation may influence performance in NSD,and related contextual situations.
The conceptual relationships proposed,inform those seeking to enhance the
performance of RRBs of some of the key internal marketing issues involved in
their success, and thus give direction to the development of policies to reduce
poverty.

LITERATURE REVIEW:-
(2006)
The globalisation of service industry revealed the necessity to develop the
strategic of new market entry. The analysis of market attractiveness facilitated
the decision making regarding modes of service firms’ entry and their further
expansion into the new markets. The effectiveness of operation in the new
markets depends on comprehensive marketing planning through application of
marketing techniques.

(2003)
This paper, presented in the form of literature review, aims to compare and
contrast service marketing theory and practice. This paper firstly introduces the
concept of services and analyses the nature of services (intangibility,
inseparability, variability and perishability). It secondly develops extended
marketing mix for services highlighting the importance of people, physical cues,
and processes in service management. Three types of marketing used in service

47
industries are being introduced: Internal Marketing, Interactive Marketing and
Evaluation Processes. Apart from that tasks that service forms face are being
discussed: Managing Differentiation, Managing Service Quality and Managing
Productivity. The paper is illustrated with several examples from the companies
operating in service industries.

This literature review will analyze past and current research that has been done
which relates to the motivations of attendees of arts and cultural performances.
This critical analysis of literature contains facts, statistics, and predictions of
different motivations to relate to the findings in the surveys collected from the
Young Auditorium.

It is important to understand why people attend events and performances in


order to market to the appropriate target effectively. A special event is seen as an
opportunity for leisure or an opportunity to be with friends and family. This is what
appeals to potential visitors and they must feel that this is what they will receive.

One such study, of comparative motivations of visitors at four different events,


examined the differences of motivations among the different events. When asked
,”Why did you come to this event?” a general interest in the theme of the event
accounted for 38.7 percent of the responses for one event and about 20 percent
in the other events. This leaves a large percent of unexplained reasoning of
attending such events.

48
There are a few other factors in determining why people
attended these events .Social reasons are the second leading answer given.
Social interaction was more important to the events that sfocused on eating,
drinking, and dancing. So this naturally would be a motivating factor.
Respondents also placed emphasis in being with and meeting people that share
their common interests. These reasons determine the need to seek stimulation,
entertainment and excitement. Some respondents even stated, “because I enjoy
festival crowds” and “to observe the other people attending the event,” ( 2001).
Kotler also looked at the influence of the personal goals
that will affect their attitude and behaviors. There are two separate goals that are
described by the study. The enrichment goal includes goals for cultural
enrichment, educational experience, and becoming a patron of the arts. Leisure
goals include need for entertainment, relaxation, and a social time with friends.
These two different perspectives about what one might obtain from attending a
performance determine the perceived value of their visit and can explain why
frequent, committed visitors enjoy and trust the performance more than an
occasional visitor.

49
03. RESEARCH METHODOLOGY

Title of the Study:


A Detailed Study Of

Objective of Study
There are the following objectives:-

 To analyze the comparative studies of public sector and private sector banks.
 To examine various process and sub process of the operational features of
banks.
 To analyze the customer satisfaction status.
 To examine the quality elements in the claims of various organizations.
 To suggest an alternative system, if required.
 To find out market potential of SBI with compare to other bank.

50
Type of Research

The research carried out under the topic,was based on the combination of
primary and secondary data.The questionnaire metod was adopted.A sample of
60 branches, which included private sector banks , was for this purpose.

The customers and bank officials were surveyed. The sample of strategy applied
in this regard was random. The research design was a blend of descriptive and
exploratory method.The customers and staff members were given the
questionnaires. The ranking scale method was applied in this process .

The research comprises of defining and redefining problems, formulating


hypothesis or suggested solutions; collecting, organizing and evaluating data,
making deductions and reaching conclusion; and at last carefully testing the
conclusions to determine whether they fit formulating hypothesis. The research
process is carried out to a series of step, which are required to be taken in
chorological order. The major marketing research steps are as follows:

 Problem identification.
 Research design.
 Fieldwork.
 Data analysis & interpretation.
 Report Presentation.

51
Problem Identification:-
The first and foremost step in this research is to identify the problem chosen for
investigation. The step has very significance, once it is said “A Problem well
identified is half way to solution”. On the other hand if the problem identified
vaguely, a wrong problem is identified, or research is not clarified, then the
research result may be completely useless for the management, and the
research effort of the investigation will be a futile exercise.

Research Design :-

A research design is a master plan or model for the formal investigation. Once
the formal investigation is decided, the researcher must formulate the formal plan
of investigation. A research design id the specification of methods & procedure,
for acquiring the information needed for solving the problem. The formal
investigation plan will concentrate on the selection of sources of information and
the selection of methods and procedures for gathering the data. Data gathering
forms are prepared. Questionnaires are tested, samples for investigations are
planned.
There are three basic types of research design:-

Descriptive

52
Exploratory Casual

In my research I have used the descriptive research design

Descriptive Research Design:-


The descriptive study is typically concerned with determining frequency with
which some thing occurs or variable vary together this study is guided by an
initial hypothesis. Descriptive studies are those studies, which are concerned
with describing the characteristics of a particular individual, or of a group.
Descriptive research includes surveys and fact-finding
enquiries of different kinds. The major purpose of descriptive research is
description of the state of affairs as it exits at present. In social science and
business research we quit use the term Ex post facto research for descriptive
research studies.

53
Research process in flow chart:-

Define research problem

Review the literature

Formulate hypothesis

Design research
(including sample design)

Collect data
(execution)

Analyse data
(test hypothesis if any)

Interpret & report


54
DATA SOURCE:-
There are two sources of data collection:
 Primary data source
 Secondary data source.

Source of Data:-
Primary Data: -
Primary data are those data, which are obtained for the first time by the
investigator himself. In order words, by primary data we mean those data, which
are originally, i.e., those in which little or no grouping has been made, the
instance being recorded or itemized encountered.
The source of primary data used in my project is the questionnaire. Primary are
the raw data like raw material. Primary data are according to object of
investigation and used without correction. The collection of primary data requires
large sum, energy and time. Precautions are not necessary in the use of the
primary data.

Secondary Data: -
Secondary data means data that are already available i.e; they refer to the data,
which have already been collected and analysed by some one else. When the
researcher utilizes secondary data, then he has to look in to various sources from
where he can obtain them. In this cause he is certainly not confronted with the
problems that are usually associated with the collection of original data.
Secondary data may either be published data or unpublished data.

BASIC DATA COLLECTION METHOD


There are two basic methods available for collection of data these are.
1. Questionnaire method or survey method.
2. Observation method.

55
Questionnaire method: -
This method refers to all those method which are required for obtaining the
needed information from the respondents for the purpose of understanding and
predicting some aspect of behaviour of population of interest.

Types of Questionnaire Method: -


1. Structure / Disguised.
2. Structure / Non Disguised.
3. Non-structure /disguised.
4. Non structure / Non disguised

The relevant data and information for the survey was collected
through both primary source as well as secondary source. The primary data were
collected directly from the sample business man customer. Secondary source
includes, magazines as well as reports available in the department and Internet.
Secondary information mainly provided the background for the survey and help in
providing information in the subjects for which sufficient primary information was
not available.

As a data collection method I have used the Questionnaire Method.


Why a Questionnaire Method has been adopted?
Questionnaire consists of a balanced no. Of close ended and open
ended questionnaire mainly of multiple choices and scaling technique for some
question where it’s necessary. Besides there are sufficient no. Of open ended
question for the allowing the respondents to speak freely
Questionnaire had been prepared to get the response of the people
as per guided by the organizational guide. To provide the best end results
without any kind of biasness, which can give a brief idea about sampling and
would be beneficial for making inferences for tabulations and calculations with
research instruments? I made a survey through questionnaire as prepared by
me.

56
BASIC STRUCTURE OF COLLECTING DATA-

Segmentation of
People

Meeting with
people

Filling up
Questionnarie
And Schedule

Research Instrument:-
57
There are mainly two type of research instruments for collecting data.
1. Questionnaires
2. Mechanical Devices

1)-Questionnaires:-
This questionnaire consists of asset of questions presented to
respondents for their answer. The questions present in the questionnaires are
basically of three types.
A. Open ended questions.
B. Close ended questions.
C. Dichotomous question.

2)-Mechanical Devices:-
There are various mechanical devices, which are used to study
various responses of the respondents. These include galvanometer
techistiscope, eye cameras etc. these instruments are however not used
frequently.

Sample Size & Method of Selecting Sample

Sampling Design:-
Sampling plan consists of sampling unit, sampling size and sampling procedure
therefore it is necessary to find out sampling plan if population is 100.
Sample Design Consists of:
• Experimental Research design
• Exploratory Research design
• Descriptive Research design.

Sampling plan-

58
It is a plan, which determines the type of respondents and their
number from whom researcher has to collect the data. This plan calls for four
decision.
1) Sampling Unit.
2) Sampling Size.
3) Sampling Procedure.
4) Medium for collecting sample.

1. Sampling Unit:-
In this the researcher designs the target population that will be sampled.
Once the sampling unit is determined sampling frame has to be prepared so that
each and every one in the target population has an equal chance of being
sampled.

2. Sampling Size:-
In this researcher determines the 100 people to be surveyed.

3. Sampling Procedure:-
The selection of units from sampling frame, termed, as sampling unit is the
process of sampling. There are mainly two type of sampling approaches.
1. Probability sampling.
2. Non-Probability sampling.

Probability Sampling:-
In this method every unit in the sampling frame has an equal or known
chance
of being included in the sample.

Non-Probability Sampling:-
The chance that a sampling unit would be selected to be included in sample
cannot be estimated.

4.Medium for Collecting Sample:-


59
In this the researcher determines the method through which the
subject should be cotacted. This include following three method.

1. Mail questionnaire

2. Telephone interviewing.
3. Personal interview.

Sample Plan:-
Sampling Design : Simple Random Design
Sample Size : 100
Sample Location : Alwar

Technique use of analysis of Data-


For the analysis of the “Percentage & random sampling” has
been used. on Percentage & random sampling are used to measure different
psychological aspects such as attitudes, perceptions and preference of people
with the help of certain pre-defined set of stimuli and instructions. We show our
graphical presentation in percentage.

Medium for collecting sample-


Personal interview through structured questionnaire was
considered most appropriate means for contacting businessman customer

Geographical Area cover-


The whole fieldwork has been done in Alwar City.
Thus in short the research methodology of the survey is following:-

60
Research Design structured questionnaire with open
ended & close Ended question.

Data collecting Primary data collected through


questionnaire. Secondary data from
books, Magazines, Internet.

Sample unit - Managers

Sample size 100

Sampling technique Non probabilistic stratified random


sampling.

Medium of collection Personal interview using questionnaire


sample

Field work Alwar City.

Generally a research methodology comprises of the following steps-

S.No. General Methodology

61
Step1. To decide the objective of the study.

Step2. To decide the research design

Step3. To determine the source of data

Step4. To design data collection form

Step5. To determine sampling design and sample size.

Step6. To organize and conduct the fieldwork.

Step7. To process and analyze the collected data.

Step8. To prepare the research report

SCOPE OF THE STUDY:-


Each and every project study along with its certain objectives also have scope for
future. And this scope in future gives to new researches a new need to research
a new project with a new scope. Scope of the study not only consist one or two
future business plan but sometime it also gives idea about a new business which
becomes much more profitable for the researches then the older one. Scope of
the study could give the projected scenario for a new successful strategy with a
proper implementation plan. Whatever scope I observed in my project are not
exactly having all the features of the scope which I described above but also not
lacking all the features.

- Research study could give an idea of network expansion for capturing more
compromising with quality.
- In future customer requirements could be added with the product and
services for getting an edge over competitors.

62
- Consumer behavior could also be used for the purpose of launching a new
product with extra benefits which are required by customers for their account
(saving or current ) and/or for their investments.
- Factors which are responsible for the performance for bank can also be
used or the modification of the strategy and product for being more profitable.
- Factors which I observed while doing project study are following-
1) Competitors
2) Customer Behaviour
3) Advertisement/promotional activities
4) Attitude of manpower and
5) Economic conditions
These all could also be interchanged with each other for each other in banks
strategies for making a final business plan to effect the market with a positive
way without disturbing a lot to market, customers and competitors with
disturbance in market shares.

LIMITATION OF THE STUDY


1. The time to collect the data for the research was less time.
2. Selection of the techniques.
3. Unwillingness of the respondents to answer the questions,
as they do not take them seriously.
4. Incomplete knowledge about the subject, the accuracy of data.
5. They don’t have time so they answer in hurry.
6. The situation in which the customer answering, he may not like to
answer is the presence of the people.

04. FACT & FINDING

63
1. The credibility of IDBI bank is good in comparison to its competitors as GOI
(Government Of India) is a major share holder in the company.

2. IDBI bank has potential a tapped market in Alwar in region and hence has an
opportunities for growth.

3. The products of IDBI bank has good credibility in the region compare to its
competitors.

4. The advertisement of the bank was very effective from the first day of its airing till
the fifth day and there after it starts declining.

5. The initial balance for A/C opening is Rs, 5000/- in IDBI Bank and that’s why
people are reluctant in opening the same.

6. The initial balabce for A/C opening is Rs,500/- in PNB Bank.

05. ANALYSIS AND INTERPRETATION


64
 If you have account than which bank you prefer;?

a) IDBI Bank 40%

b) PNB Bank 60%

 Do you Know about IDBI Bank ltd.

a) Yes 37%

b)No 73%

 Do you Know about PNB Bank ltd.

65
a) Yes 86%

b)No 14%

 If you choose IDBI Bank, If you choose PNB Bank .

Why.? Why.?

• How do you rate the service from your bank?

IDBI PNB

a) Poor 85% 15%

b) Average 30% 70%

c) verygood 39% 61%

d)excellent 20% 80%

66
• . Which methods do you use to manage your banking?

IDBI PNB

a) Internet Banking 15% 85%

b) Paper Statements 80% 20%

c)Telephone Banking 25% 75%

d) Using ATM 85% 15%

PN
B
IDB
I

• Do the bank serve you in a timely manner .?

67
IDBI PNB

a)Yes 27% 73%

b)No 73% 27%

PNB

IDBI

• Do bank provide you with all the information you need.?

IDBI PNB

a)Yes 67% 33%

b)No 33% 67%

IDBI PNB

• Do the Bank explain their service and product clearly.?

68
IDBI PNB

a)Yes 56% 44%

b)No 44% 56%

PN IDB
B I

What kind of relationship do you have with bank.?

IDBI PNB

a)Personal 25% 17%

b)Business 57% 69%

c)Both 18% 14%

Questionnarie IDBI Bank PNB Bank


Private Bank 23 77
National Bank 78 22
Safe Place for your 67 33

money
69
Need More Advertisment 78 22
Good bank for 35 65

Consumer

 Comparative study with major competitors on Basic parameters

Parameters/Ranks IDBI Bank PNB Bank

Product 35 65

Manpower 46 54

Net-banking 22 78

Phone-Banking 43 57

Investment Scheme 27 73

Network 77 23
70
Creatibility 54 46

06. SWOT ANALYSIS

71
Strength

 Wide Network
 Large no. of Customer
 Fast adaptability to Technology
 Brand Recognition
 Excellent Training Facilities
 Home to home banking services
 Diversification towards other fields
 Globalization
 Providing better services
 Building long term customer relationships

WEAKNESS

 Causal behavior
 High gross NPA
 Corruption & Red Tapism
 Slow Decision Making due to large Hierarchy

OPPORTUNITIES

 Fast growing indian economy


 High growth in banking sector
 Liberal market
 Micro financing

THREATS
72
 Large no. of market players
 Fast decision making
 Competitive edge
 Changing culture

STRENGTH
 Extremely Competitive And Profitable Banking Franchise

73
 Banking Services Include Corporate Credit, Retail Banking, Business
Banking, Capital Markets, Treasury And International Banking.
 Support of various Promoters
 Strong technology
 In terms of quality of assets and capital adequacy, Indian banks are
considered to have clean, strong and transparent balance sheets relative to
other banks in comparable economies in its region
 Extensive reach: the vast networking & growing number of branches &
ATMs. Indian banking system has reached even to the remote corners of
the country.

WEAKNESS
 Higher cost
 Customer service
 Market Capitalization Very Low
 Less promotional activity

OPPORTUNITY
 Very wide market
 Other activity(insurance, stock broking, mutulfund)
 Wide scope in rural area

THREATS
 Rising Rates
 Capital Market slow-down
 Competition
 Other better Saving, investment option available (like Insurance,
Mutulfund, Real-estate, Gold)
 Government Rules And Regulation

74
07. CONCLUSION

 Consumers of Alwar have good awareness level about IDBI bank as well
as about its services and products.

 The advertising campaign has successfully been able to increase the
market share of IDBI in Alwar .ANK LTD.

75
 The modern days technology like internet banking, phone banking, used
by IDBI bank for providing banking services has sent positive signals in
the mind of consumes.

 The network of IDBI in Alwar is lagging behind a little than its competitors
like ICICI bank and HDFCbank.

 It can be distilled from data that IDBI bank has good market share as
compared to its competitors considering the amount of resources
deployed by them in the market.

08. RECOMMENDATION & SUGGESTIONS

Recommendations:-
 Since there is only One branch of IDBI bank and only three atms in Alwar,
so it is necessary for IDBI bank to open more branches and install more
atms to serve the vast market of Alwar especially.

76
 More resources should be allocated in the market of Alwar as there is big
untapped marke in Alwar, so it becomes necessary for IDBI bank for
taking an edge over the competitors.

 A short advertising campaign in Alwar has produced good results in a


short span of times, so to gain long term benefits is very necessary for
IDBI bank to carry on this campaign ith more intensity.

 Besides opening more branches it should also look for opening some
extension counter in Resali and one in Rajnandgaon.

 As Government is the majority share holder in the shares of IDBI bank,


which makes this bank more reliable than other private banks, this thing
can be used in the favour of IDBI bank by making people aware about
this fact and winning their faith.

Suggestions:-

 The Bank will have adopt to the diversified services like selling insurance etc,
so that they can be of multiple uses.
 The business transaction hours can be flexible, The customer may have
access any time whenever it is required.

77
 The can open their branches at the shopping place so that customers may
have easy availability of finance.
 Customer complaint system can more effective and informative.
 eloping strong cultural values
 Social Integrity
 Bonding with customers
 Responsiveness
 Fast & Decentralized decision making
 Diversification
 Awards and Incentives based pay structure
 Globalization

09. APPENDIX

QUESTIONNARIE:-

Respected Sir/Madam,
I am a student of M.B.A IV Semester of Modern Institute of
Technology & Research Center. I am doing a research on “Comparative study of
role of services marketing in Banking sector (Private & National Bank)”.

78
In this regard I need your kind cooperation which will be kept
confidential and will be kept for the academic purpose. The success of this
research will depend on your true and clear response.
There are the following questions:-

 Demographic Information:-
• Gender:-
a) Male b) Female
• Age:-
a) Above 18 b) 25-35
c) 35-50 d) Above 50
• Profession:-
a) Student b) Service
c) business d) Housewife
e) Any Other
• Average monthly Income:
a) Less Than 1,00,000 b) 1,00,000-1,25,000
c) 1,25,000-1,50,000 d) More than 1,50,000

 Do you have Account in any Bank.?


a) Yes b) No

 If you have account than which bank you prefer;?


a) IDBI Bank b) PNB Bank

 Do you Know about IDBI Bank ltd.


a) Yes b)No

 Do you Know about PNB Bank ltd.


a) Yes b)No

 If you choose IDBI Bank, If you choose PNB Bank .


79
Why.? Why.?

• How do you rate the service from your bank?



IDBI PNB
a) Poor a) Poor
b) Average b) Average
c) very good c) Very good
d) excellent d) excellent

• . Which methods do you use to manage your banking?



IDBI PNB
a) Internet Banking a) Internet Banking
b) Paper Statements b) Paper Statements
c)Telephone Banking c)Telephone Banking
d) Using ATM d) Using ATM

• .Do the bank serve you in a timely manner .?



IDBI PNB
a)Yes a)Yes
b)No b)No


• Do bank provide you with all the information you need.?

IDBI PNB
a)Yes a)Yes
b)No b)No

• Do the Bank explain their service and product clearly.?

80
IDBI PNB
a)Yes a)Yes
b)No b)No

• Overall how would you rate the service you receive from bank.?

IDBI PNB
a)Excellent a)Excellent
b)Good b)Good
c)Satisfactory c)Satisfactory
d)Poor d)Poor

• What kind of relationship do you have with bank.?



IDBI PNB
a)Personal a)Personal
b)Business b)Business
c)Both c)Both




• Do Bank offer option to meet your specific needs.?

IDBI PNB
a)Yes a)Yes
b)No b) No

What is your satisfaction level.?


IDBI
a) Fully Satisfied 
81
b) fairly well
Satisfied
c) Very dissatisfied

PNB
a) Fully Satisfied
b) fairly well Satisfied
c) Very dissatisfied

• Overall, how satisfied are you with the service you receive?

IDBI PNB
a) Very Satisfied a) Very Satisfied
b) Satisfied b) Satisfied
c) Dissatisfied c) Dissatisfied
d) Very Dissatisfied d) Very Dissatisfied





• .How did Bank contact their customer service?

IDBI PNB
a)Email a)Email
b) Fax b) Fax
c)Telephone c)Telephone
d) Web d) Web
82
e)In person e)In person

(Answering only with YES or NO)

Questionnarie IDBI Bank PNB Bank


Private Bank
National Bank
Safe Place for your
money
Need More Advertisment
Good bank for Consumer

IDBI BAN

K LTD.
83
 Comparative study with major competitors on Basic parameters
Parameters/Ranks IDBI Bank PNB Bank

Product

Manpower

Net-banking

Phone-Banking

Investment Scheme

Network

Creatibility

84
10. BIBLIOGRAPHY

Websites:

 www.scribd.com
 www.wikipedia.com
 www.mutualfundsindia.com
 www.icmrindia.com
 www.papers.ssm.com
 www.iadb.org
 www.moneycontrol.com
 www.yahoofinance.com
 www.rediffmoney.com
 www.nseindia.com
 www.investopedia.com

Journals & other references:

 Icfai Journals of Service Marketing


 The Economic Times
 Business Standard
 The Telegraph
 Business India
 Fact sheet and statements of various fund houses.

85