Icici Report

A PROJECT REPORT
ON
MARKETING OF FINANCIAL PRODUCTS OF ICICI BANK LTD. NOIDA

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) To Guwahati University
By Priya Narwal Under the Guidance of :Prof. Shmeena Gupta
ACADEMY OF TECHNOLOGY AND MANAGEMENT GLOBAL BUSINESS SCHOOL ASHOK VIHAR-1, DELHI-110052 JANUARY 2011
Academy of Technology & Management (GBS), New Delhi
DECLARATION
I Priya Narwal student of M.B.A 3rd sem from A.T.M. college affiliated to Guwahati University hereby declare that all the information, facts and finding furnished in this report are based on my indigenous work and are original in nature. This information is used for academic only. Any resemblance foe existing work is purely coincidental.
DATE : PLACE: (Priya Narwal)
CERTIFICATE
This is to certify that the Project at
ICICI BANK LTD.

Submitted in partial fulfillment of the requirement for the award of the degree of Master of Business Administration (Industry Integrated) To Guwahati University Is a record of bonafide training carried out by Priya Narwal Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree/diploma/fellowship of similar titles or prizes FACULTY GUIDE Signature : Name : Priya Narwal Qualifications : MBA IIIrd Sem. Signature & Seal of The learning Center
ACKNOWLEDGEMENT
While submitting the project report prepared by me on the topic MARKETING OF FINANCIAL PRODUCTS in ICICI bank, Sec.-62, Noida. I here acknowledge my humble gratitude & loyal thanks to MR. Roney Neogy. (Branch manager ICICI bank, Noida) who gave me an opportunity to work in ICICI Bank. I would like to thank Mr. Abhishek Tripathi (Branch Sales Manager, ICICI bank Noida) for encouraging me to undertake this study. I am also grateful to Mr. Gaurav Sharma under whom I have done my project and have also helped me to know much about the market condition .she has also helped me in preparing the questionnaire easily. Last but not the least; I am thankful to all of my friends who has given me their valuable suggestions in preparing the report.
Priya Narwal
PREFACE
Management training has gained rapid and tremendous importance over the past five years. Management was previously considered as an inborn art or talent, but in todays fast developing world, these have been modified. We undertook eight weeks summer training in ICICI bank Noida. As an essential and obligatory part of master program in business administration, curriculum of Academy of Technology and Management, Delhi. The report embodies the result of the project an extensive market research program was accomplished. We deem it as a matter of great fortune to get summer training at ICICI bank Noida. The summer training was quite interesting, inspiring, satisfying, learning and academically awarding.
Table Of Content
Certificate Declaration Acknowledgement Preface
Part - I
Chapter 1 Chapter 2 Chapter 3 Introduction Company Profile Product Profile
Part - II
Chapter 1 Chapter 2 Chapter 3 Chapter 4 Executive summary Litreature review Objective of the study Research Methodology
Part -III
Chapter 1 Chapter 2 Chapter 3 Data analysis Result analysis Swot analysis
Part IV
Chapter 1 Chapter 2 Chapter 3 Recommendations and Suggestions Annexture Bibliography
CHAPTER 1- INTRODUCTION
INTRODUCTION OF BANKS
Banks in India have played a significant role in the development of the Indian economy. Banks continue to be the major financial intermediaries with a share of 64% of total financial assets. However, non-bank financial companies and development finance institutions are also emerging as alternative sources of funding. In India, foreign banks account for only around 8% of the total assets of the banking system. Banks have been moving into certain areas that were the exclusive domain of the Development Finance Institutions (DFIs), eg project finance and investment banking.
MECHANISM FOR PRESERVING COMPETITION

There is no separate agency/mechanism for preserving competition in the banking sector. Promoting competition is, however, one of the key objectives of financial sector reforms. The entry of new private sector and foreign banks and introduction of new products and technology and operational freedom to banks have ensured a competitive environment in the financial market. While the entry of foreign banks could definitely improve the competitive environment, they are not likely to weaken domestic banks. With better technology and expertise in offering specialized banking products such as derivatives, advisory services, trade finance, etc, the entry of foreign banks can enhance healthy competition and has a
positive spillover effect on the domestic banks. The domestic banks would be under peer pressure to improve operational efficiency. The ongoing revolution in information and communication technology has, however, largely bypassed the Indian banking system given the low initial level of automation. The competitive environment created by financial sector reforms has nonetheless compelled the banks to gradually adopt modern technology, albeit to a limited extent, to maintain their market share. There are various financial products that a bank offers to its customers such as- different types of accounts viz Savings Account, Fixed Deposit Account and other facilities like Loans, Investments,Insurance etc. Since this sector is facing lot of competition, banks have to design their policies and strategies to attract more and more customers. It is a race to catch the position of market leader with maximum market share.
MARKETING OF BANK SERVICES: It means designing good services as well as good delivery of these services. It covers following functions: Identification of customer needs, financial/service related Developing appropriate services/products to suit the needs and determining their prices. Setting up channels for their delivery and making the present and potential customers aware about their availability. Developing proper attitude, orientation and culture among the employees for delivering the services to the satisfaction of the customers.
SCOPE OF BANKING INDUSTRY: Banks have voluntarily taken on the entire task of mobilization of savings of the household sector, over the past several decades, and helped achieve impressive household savings rates of 20% of the countrys GDP. We are already witnessing the ATMs progressing, Telebanking, and Home Banking, and the trends towards aggregation and cross selling of various financial products, such as Banking, Mutual Funds, and Insurance, to name just a few, are very evident. The ATMs may even be smart ATMs- using biometrics, to recognize customers by their voice, face or fingerprints. In essence, the new generation ATMs will be retailing ports and will change the very face of banking as well as retailing. As we achieve higher economic growth, the demand for banking products and services will increase exponentially particularly, in areas outside the handful of major cities and towns. The entire banking industry is set to undergo dramatic and sweeping changes.
BANKING OPPORTUNITY: INDIA CALLING It is not just the reports saying that foreign financial entities (GE Money, Goldman Sachs and Merrill Lynch to name a few) are showing interest in Indian banking sector, but the concerned authorities in the country also seem to be encouraging the same. Reserve Bank of Indias twin-phased roadmap for facilitating entry of foreign banks into India seems to be a step towards fulfilling the key objectives of competition, consolidation and convergence in the sector. But what is it that is enticing the foreign entities to the Indian shores? Here, is the reason-
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FRAGMENTED MARKET Twenty seven PSU banks, 25 private banks, 30 foreign banks and a host of cooperative and regional rural banks do not in any sense implicate that India, as a country, is under-banked. Although corporate credit has shown some signs of revival over the past few quarters, it has been the retail credit segment that has accelerated the credit growth. As economy progresses, demand for credit from this segment will continue to surge. HALF OF THE PIE-
Considering only scheduled commercial banks The fact that the top 8 banks account for barely 54 per cent of the market share suggests that several smaller players occupy the remaining 46 per cent. It is here that the foreign players see the opportunity. Also, since the new foreign players will not be allowed to expand freely, the ones taking the subsidiary route for expansion will not be subjected to rural branch norms (25 per cent of branches to be set up in rural areas) as well as priority sector lending requirement (35 per cent). They can thus concentrate their focus on the lucrative urban markets. The bottomline is- The optimism about the foreign participation in the banking sector has its own share of vices. While opening up the sector to more competition and consolidation, it is pertinent to safeguard the smaller domestic banks from getting cannibalized by their stronger foreign counterparts. With regulators like RBI and SEBI keeping a close watch we can hope that they do not fall prey to the vested interests of the foreign players.
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CHAPTER 2-EXECUTIVE SUMMARY

Operating in the oligopolistic market condition, banking sector is growing at a rapid pace in the highly competitive environment with the presence of public, private and foreign banks. Promoting competition is, however, one of the key objectives of financial sector reforms. With growing liberalization, foreign entrants are giving a challenge to the domestic companies. Governments policies like opening up the sector to FDI and amendments in The Banking Regulation Act, 1949 are also encouraging banks to adopt ways and means to attract more and more customers by identifying and satisfying their needs and wants. ICICI Bank being the countrys second largest bank after State Bank Of India has more than 560 branches and over 1700 ATMs across the country. This project was done in ICICI Bank (Noida Branch) to analyze the differentiation that banks provide in their products and services, identify the effectiveness of advertisements and the level of awareness among customers, their attitude towards banks and to identify the level of satisfaction among customers.A comparative ratio analysis was done between ICICI Bank, other Private Sector Banks and Nationalized Banks to get the idea of the performance of these banks. This result analysis showed that ICICI Bank is having a good financial position in comparison to other banks as it showed relatively more growth in profits from the previous quarter. PSU banks in fact showed a decline in their profit after tax. Having its focus on retail banking and thus increase in operating cost, ICICI Banks cost to income ratio increased. But, overall financial position of ICICI Bank is better than
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other banks.After making comparison between ICICI Bank, other Private Sector Banks and Nationalized Banks by collecting data from customers and personal interviews from the staff of HDFC Bank and State Bank Of India, it can be concluded that there are opportunities for ICICI Bank to fill the unsatisfied needs of customers of other banks especially nationalized banks which can prove to be a milestone in its success story.
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CHAPTER 3- LITERATURE REVIEW

Marketing as a functional area of management is becoming increasingly important as compared to other fields, viz., production, finance etc. The increasing significance of marketing is the major reason that marketing information has gained the present pivotal place of information. All decisions in modern business organizations revolve around the marketing information. In modern business organizations, finance, production etc. may be the door to success but marketing is the key that turns the lock. The critical input needed for every business is the marketing information. This information can be collected and utilized using marketing research techniques like probability sampling technique, data collection methods etc. This project was aimed at understanding the marketing of various financial products in the banking industry. The project was carried out in association with ICICI Bank (Noida Branch).
SWOT Analysis:
A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm can be classified as strengths (S) or weaknesses (W) and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as SWOT Analysis. The following diagram shows how a SWOT analysis fits into an environmental scan:
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SWOT Analysis Framework Environmental Scan Internal Analysis Strength Weakness External Analysis Opportunity Threat
SWOT Matrix Strengths:

A firms strengths are its resources and capabilities that can be used as a basis for developing a competitive advantage. For example- good reputation among customers.
Weaknesses:
The absence of certain strengths may be viewed as weaknesses. For example- high cost structure.
Opportunities:
The external environmental analysis may reveal certain new opportunities for profit and growth. For example- arrival of new technologies.
Threats:
Changes in the external environment may also present threats to the firm. For example- shifts in customers tastes away from the firms products/services.
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CHAPTER 4- COMPANY PROFILE

ICICI BANK LIMITED
ICICI Bank is Indias second-largest private sector financial powerhouse with total assets of about Rs.1, 67,659 crore at March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2005 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560 branches and extension counters and over 1,900 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Banks success story rests on three legs: Relentless focus on brand building The strength of its sales force Leveraging technology
The advent of economic liberalization in 1991 saw the government bringing about some policy changes in the financial sector. The result was the amendment to the Banking Regulation Act in 1993, thus kick starting the second-generation reforms that opened up the banking sector for private players. This was also accompanied by an important shift from corporate to retail banking.
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The immediate challenge for private banks was to break the stranglehold of the nationalized banks. ICICI Bank came up with a grand brand vision- to be a top bank. This vision then set the tone for aggressive marketing efforts to drive up scale, quickly. In 1997, ICICI was not a strong retail brand and the challenge was to create awareness on three counts: First that ICICI Bank exists, Second that it exists in the financial space and Third that it wants to establish a relationship with individuals as opposed to corporates. After analyzing the imagery associated with state-run banks and multinational private banks, the bank decided to own distinct brand value.
How ICICI Identified Brand Values

PSU Banks Government Slow in working Very old fashioned Foreign Banks Expensive Elite Not for me ICICI Bank Modern Technologically savvy Good customer service
Having achieved a high awareness about the brand, the focus soon shifted to communicating specific product proposition. The entire business was classified under 13 product groups, including the retail
liability or consumer banking, home loans, car loans, credit cards, international banking with focus on NRI remittances.
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Awards and Recognition for ICICI Bank
Triple AAA Best Cash Management Country Award in India by The Asset Best Bank in India by Euromoney Indias Most Customer Friendly Bank by Outlook Money
Best Bank by Business India
Best Retail Bank in India by Asian Banker Best Foreign Exchange Bank in India by Global Finance Indias Most Admired Private Sector Bank by Business Barons India Derivative House of the Year by Asia Risk
Having become a runaway success, the main challenge before this financial powerhouse is to retain and further drive this stupendous growth.
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CHAPTER 5- PRODUCT PROFILE
Deposits: ICICI Bank offers wide variety of deposit products to suit customers
requirements. Coupled with convenience of networked branches, over 1800 ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at their doorstep. Customers have to select any of their deposit products and provide details online and banks representative will contact them for account opening.
1.
Savings Account: ICICI Bank offers its customers a power
packed Savings Account with a host of convenient features and banking channels to transact through. Debit-cum-ATM card Value Added Saving Account Internet Banking
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Phone Banking Anywhere Banking Standing instructions Nomination facility
Doorstep service
2.
Fixed Deposit: It ensures safety, flexibility, liquidity
and returns!!!! ICICI Bank offers its customers a combination of unbeatable features of the Fixed Deposit. Wide range of tenures Choice of investment plans Partial withdrawal permitted Safe custody of fixed deposit receipts Auto renewal possible Loan facility available
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Easy Deposit: Free Debit /ATM card No need to open a Savings account. Options of Easy Withdrawal and Easy Loan
Wide range of tenures Auto renewal possible Loan facility available
3.
Recurring Deposit: When expenses are high, people
may not have adequate funds to make big investments. But simply going ahead without saving for the future is not an option for them. Through ICICI Bank Recurring Deposit they can invest small amounts of money every month that ends up with a large saving on maturity. So they enjoy twin advantages- affordability and higher earnings. Encourages savings Loans against deposits available High rates of interest Non-applicability of Tax Deduction At Source Academy of Technology & Management (GBS), New Delhi 25
The minimum balance of deposit is Rs.1,000p.m. and thereafter, in multiples of Rs.100 The minimum period is 6 months and thereafter, in multiples of 3 months.
4.
Roaming Current Account: Only Roaming Current
Account from ICICI Bank travels the distance with customers business. With advanced technological features such as MCC and LCC, their banking needs are well taken care of. They can access their accounts at over 500 networked branches across the country.
So while customers take care of their business, let ICICI Banks Roaming Current Account simplify banking for them. Choose your account Multi City Cheque Facility Anywhere Banking Facility Upcountry Cheque Collection Pay Orders and Demand Drafts Phone Banking Facility Doorstep Banking Facility Internet Banking Facility Debit/ATM Card Mobile Banking Academy of Technology & Management (GBS), New Delhi 26
More Useful Facilities
5.
Salary
Account:
ICICI Bank Salary Account is a benefit-rich payroll account for Employers and Employees. Easy disbursements of salaries Free 24 hour Phone Banking Free Internet Banking Reduces paperwork Saves remittance costs Employees receive instant credit of salaries Defense Banking Services All benefits of being an ICICI Bank account holder
6.
Senior Citizen Services: As a person reaches the age
to retire, he does have certain concerns whether his hard earned money is safe and secure
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whether his investments give him the kind of returns that he needs. That's why ICICI has an ideal banking service for those who are 60 years and above. The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring more convenience and enjoyment in their life. Higher Interest Rates Special Demand Loans against deposit Free collection of outstation cheques drawn on our locations Debit-cum-ATM card Auto Invest Account Internet Banking Phone Banking Anywhere Banking Standing instructions Nomination facility
7.
Young Stars Account: It's really important to
help children learn the value of finances and money management at an early age. Banking is a
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serious business, but the bank makes banking a pleasure and at the same time children learn how to manage their personal finances. Secure childs future Teaches the child to be financially responsible and independent For children aged 1-18 years
Choice of saving bank account, fixed deposit account or recurring deposit account Minimum balance at Rs.500 per quarter from savings bank Free personalized cheque book Free Domestic Debit Card for children above 10 years Facility to invest in GOI Relief Bonds and Mutual Funds Free Internet Banking Facility of shopping at Young Stars very own shopping page
8.
Bank@Campus
: It is a student banking service, a technology-enabled service, through automated channels,

without physical branch access. Free personalized cheque book Free Phone Banking Free ICICI Bank N cash Debit Card Free transfer of funds into his / her account from any ICICI Bank account
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Free supplementary credit card (if the parent has an ICICI Bank Credit card. *) Annual statement of accounts * Issuance of card at the discretion of ICICI Bank.
Loans:
1.
Home Loans:
Attractive interest rates
Door-step service from enquiry stage till final disbursement
Can transfer existing high-interest rate loan
Free personal accidental insurance
Special 100% funding for select properties
Special Rates- Summer Bonanza 2005
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Special Rate - Summer Bonanza 2005
Adjustable Rate Home Loans
Tenure
Rate of Interest Applicable ROI
EMI per lack (Rs.)
5 years 10 years
FRR -1.00% FRR -1.00%
7.25% 7.25%
1992 1175
15 years
FRR -1.00%
7.25%
913
20 years
FRR -1.00%
7.25%
791
Above EMI table is for Loan amounts greater than or equal to Rs. 10
Lakhs
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2.
Personal Loans:
Loans for salaried & self-employed individuals.
Loans are available from Rs. 20,000 to Rs. 15 Lakhs.
Repayment tenures from 12 - 60 months. No Security,Collateral or Guarantors required.
Loans can be used for any purpose with no questions asked regarding the end use of the loan. A balance transfer facility available for those who want to retire any higher debt. All loan repayments are done via equated monthly installments (EMI).
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3.
Car Loans:
The # 1 financier for car loans in the country. Network of more than 1500 channel partners in over 780 locations. Tie-ups with all leading automobile manufacturers to ensure the best deals. Flexible schemes & quick processing. Hassle-free application process on the click of a mouse. All loans at the sole discretion of ICICI Bank Ltd.
An Overdraft limit / Cash up to 90% of the assessed value of the vehicle with following facilities Interest Charged only on utilization Flexible Repayment- every month pay only minimum 5% of total utilization of the overdraft facility. An HPCL Debit Card A Roaming Current account- nil minimum balance requirement Multicity Cheque Book Internet and Phone Banking
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4.
Two-Wheeler Loans:
Finance facility available for all two wheelers ranging from mopeds to motorbikes. Avail finance upto 90%* of the on road cost of the vehicle, repayable in convenient tenure options ranging from 6 months to 36 months*. Ride Easy Pay Easy with ICICI Bank Two Wheeler Loans. In an unlikely case of not meeting the norms NO PROBLEM - customer can still avail loan, any blood relative can be the co-applicant. Existing ICICI Bank customers ride away on their favourite two wheeler by availing Loan On Phone*-- a facility to get an instant loan over the phone!! Upto 96% loan facility to special customers.
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Investments:
ICICI Bank cares about all the customers needs. Along with deposit products and loan offerings, ICICI Bank assists them to manage their finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold.
ICICI Bank facilitates following investment products:

ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporates Investment in "Pure Gold" Customers can invest in above products through any of banks branches. For select products ICICI Bank also provides the ease of investing through electronic channels like ATMs and Internet (ICICIdirect.com)
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ICICI Bank Pure Gold

Gold has been traditionally the most favoured form of investment for Indians. In fact, India, even today is amongst the highest consumers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country. ICICI Bank with its Pure Gold offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue to satisfy that need, by taking care of the two key components Reliability and Convenience. ICICI Bank offers 24 Carat 99.99% internationally certified pure Gold Coins imported from Switzerland Denominations of 5gms, 8 gms & 10 gms
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Competitive prices based on daily prices in the international bullion marketICICI Bank Pure Gold is available through select branches of ICICI Bank*. *ICICI Bank Pure Gold is not available through ICICI Bank ATM's.Discount based on volumes: No. of coins Discount
1 to 10
11 to 25
26 to 50
51 to 100
101 to 200
201 & above
Nil
1.00%
1.50%
2.00%
2.50%
3.00%
Insurance:
Convenience has always been synonymous with ICICI Bank and keeping in line with this, ICICI now offers its customers the facility of buying Insurance policies online. They can buy any of the policies mentioned below: Life Insurance from ICICI Prudential Life Insurance LifeTime Pension II policy with No Life Cover
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General Insurance from ICICI Lombard General Insurance 10K Tax Saver Health Insurance
Health Insurance - "Secure yourself and your family"

- Family Protect Policy
Home Insurance- "Secure valuables in your house"

- Structure - Contents
Motor Insurance- Mandatory - "Secure your Vehicle"

- 4 Wheeler - 2 Wheeler
Travel Insurance - "Secure yourself during your travel"

- Overseas Travel Insurance - Student Travel Insurance DematServices:
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ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavor to offer best of the class service to their customers they offer the following features:
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Online access to demat account. Check holdings, transactions, details of bills and status of requests and much more. Digitally signed transaction statement by e-mail. Corporate benefit tracking. E-Instruction facility - facility to transfer securities 24 hours a day, 7 days a week through Internet & Interactive Voice Response (IVR) at a lower cost. Dedicated specially trained customer care executives at call centre, to handle all queries.
Countrywide network of over 214 branches, customers are never far from an ICICI Bank Demat Services Outlet. 24 hour customer care numbers.
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NRI Services:
Transfer money to India Loans1. Home loans 2. Loan against securities 3. Home search Investments- 1. Online Share Trading
Mobile Banking: With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers mobile banking facility to all its bank, credit card and demat customers. ICICI Bank Mobile Banking enables them to bank while being on the move. ICICI Bank Mobile Banking can be divided into two broad categoriesRequests Alerts
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Bank Requests
Credit Card Requests
Demat Requests
Bank Alerts
Credit Card Alerts
Demat Alerts
All ICICI Bank Mobile Banking services are currently FREE.
Anywhere Banking: ICICI Bank is the second largest bank in the country. It services a customer base of more than 5 million customer accounts. Thus, one can access the various services ICICI Bank has to offer at anytime, anywhere and from anyplace. Multi channel access network More than 500 branches and extension counters Over 1800 ATMs Call Centre Internet Banking
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Online Services:
No more hassles of personally visiting the Biller to
pay the bills. Pay bills for Utility Companies (Electricity and Telephone), ICICI Bank Credit Card, Mobile Bills, Insurance Premiums and lot more. Avail Free bill payment services through Internet Banking Account
Shopping at fingertips. ICICI Bank facilitates its customers to buy variety of products online from more than 75 shopping websites. Payment can be made conveniently using ICICI Bank Account. Visit banks partner websites choose product and pay using Internet Banking Facility. ICICI has tie-up with over 75 major shopping sites.\
With ICICI Bank customers need not visit Train/ Air ticket booking reservation centers any more. They can now buy their tickets online and pay using Internet Banking Facility. They can book their Railway Tickets and air tickets for Air Deccan.
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Trade in Securities Market Online through unique 3-in-1 accounts that integrates banking, broking and demat accounts. Also customers can invest online in Mutual Funds, Initial Public Offers of the Companies and Bonds. They just have to login to website www.icicidirect.com.
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OBJECTIVE OF THE STUDY

NEED FOR THE STUDY:
Banks are operating in the oligopolistic market condition with the sellers selling more or less same products but with some differentiation. Since, the prices are determined by the market forces, the only way banks can make profit is by providing differentiated products and services. The need for doing this project was to analyze the strategies employed by banks to provide differentiation to its customers and grab maximum market share.
OBJECTIVES:
To find out the awareness level in customers regarding the products in banks. To find out the effectiveness of advertising campaign of banks. To identify the competition in the banking industry with special reference to Noida region. To analyze the satisfaction level among the banks customers with regard to the products and services offered to them.
SCOPE:
The research zone selected by me was Noida (Uttar Pradesh).
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FEATURES OF NOIDA:
Population:- The density of population in Noida is 2.75 lakh. Geographical Location: - Noida is a city in the foothills of Himalayas, 187 Kms away from the capital city-Delhi, with the radius of 30 kms approximately. It is surrounded by scenic places like Mussourie and Haridwar as well as well known institution of knowledge-IIT Roorkee.
- Markets covered
Court Road:Awas Vikas Navin Nagar Chilkana Road Haquiqat Nagar
Distribution of income:The population residing in Noida falls under following classesUpper middle class Upper lower class Middle upper class - 5% - 10% - 20%
Middle middle class - 30%
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Middle lower class - 15%
DIAGRAMATIC REPRESENTATION OF THE CLASSES Middle lower class 19% Upper middle class Upper lower 6% class 13%
Middle middle class 37%
Middle upper class 25%
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5.4 Rationale:
The rationale of doing this project was to get the clear understanding of the marketing strategy for selling various financial products by banks and develop analytical skills to analyze the performance and productivity of public sector and private sector banks through ratio analysis.
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5.5 Limitations:
The scope of research was limited to only Noida region. Thus, the analysis can be biased and inaccurate.
Because of scope being limited to Noida, the conclusions drawn may not hold true for other areas.
The reluctance of the respondents to fill up the questionnaires was also a limitation. Non-availability of the financial data of other private sector and public sector banks for the whole year on Internet posed a limitation in calculating and comparing ratios. Thus, ratio analysis was restricted to the quarter ended December 2004 only.
The scope of learning in banking sector is very vast. But, because of time constraint the focus of knowledge was limited.
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RESEARCH METHODOLOGY
For doing the research on this project, I did the analysis of marketing of various financial products like savings account, fixed deposit account, demat account, loans, insurance etc. in ICICI Bank Ltd. A similar analysis was also done in other private sector banks like HDFC and public sector banks like State Bank Of India. After that a comparative analysis by the means of pie chart and bar diagram was done between ICICI Bank v/s other Pvt. Sector Banks v/s Nationalized Banks. I have also done ratio analysis of December quarter 2004 in ICICI Bank and compared it with other private sector banks and public sector banks, which gave an idea of the productivity and performance of these banks.
SAMPLE SELECTION CRITERIA:

The sampling technique used for my research was Probability Sampling Technique i.e. number of items were selected at random.
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DATA COLLECTION METHOD:

Primary data: Primary data was collected by the means of questionnaires which contained all closed ended questions except one open ended question for critical comments, if any. Besides this, personal interviews from the staff of HDFC Bank and State Bank Of India was also a source of primary data collection.
Secondary data:
For the purpose of dong ratio analysis and other information,
secondary data was collected from Internet.
Sample size:
The sample size was 100 respondents. Conclusions and recommendations were given at the end of the project report.
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CHAPTER-7 DATA ANALYSIS
NO. OF RESPONDENTS IN BANKS

45 40 35
No. of respondents
30 25 20 15 10 5 0
ICICI Bank Other Pvt. Banks Nationalized Banks
Banks
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NO. OF RESPONDENTS IN BANKS

45 40 35
No. of respondents
30 25 20 15 10 5 0
ICICI Bank Other Pvt. Banks Nationalized Banks
Banks
Banks ICICI Bank Other Pvt. Banks Nationalized Banks No. of respondents 37 24 45 INTERPRETATION: The figures show that most of the respondents are transacting with the nationalized banks. The sum total is not 100(sample size being 100) because of 3 respondents having banking relationship with more than one bank. Other private banks include HDFC Bank, Co-operative Banks etc. While nationalized banks include State Bank Of India, Bank Of Baroda, Vijaya Bank, Punjab National Bank etc.
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OCCUPATIONAL GROUP
40 35
No. of respondents
30 25 20 15 10 5
Service
Business
Occupation
Occupation
Business
Service
Self-employed
Ohers
Self-employed
Others
No. of respondents
35
38
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INTERPRETATION: The no. of respondents under service and business class was almost same. Others group includes students and housewives etc. who do not fall under any other category. The no. of respondents in self-employed group was the least. This is due to the randomly selected data. Monthly Income (Rs.) No. of respondents 5,000-10,000 27 10,000-20,000 46 20,000 & above 15 Nil 12 57
INTERPRETATION:
Majority of the respondents fall under the middle-income group category. Most of these respondents were either businessmen or service class people. The respondents under the category of nil income were students and housewives. They usually operate their account on the basis of their savings and other sources.
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SOURCE OF KNOWLEDGE ABOUT BANKS

250
200
% of respondents
150 O D to D 100 GS MP TV&R 50 L N H&P Nationalized Banks Other Pvt. Banks ICICI Bank 0
Banks
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ICICI Hoardings and paintings (H&P) Newspapers (N) Literature (L) TV and Radio (TV&R) Mouth Publicity (friends/relatives)(MP) Gift Schemes (GS) Door to Door Service (D to D) Other, please specify (O) INTERPRETATION: Bank 17 14 0 2 10 12 5 3
% 46. 0 37. 8 0 5.4 27. 0 32. 4 13. 5 8.1
Other Pvt. Banks 17 1 0 0 19 12 3 2
% 70. 8 4.2 0 0 79. 2 50. 0 12. 5 8.3
Nationalized Banks 11 4 0 1 23 18 3 3
% 24.4 8.9 0 2.2 51.1 40.0 6.7 6.7
The % shows the total % of respondents from respective banks. While hoardings are the main medium for knowledge about ICICI Bank, mouth publicity works more for other private and nationalized banks. ICICI should also focus on this medium as it does not involve any direct costs and varies as per the level of satisfaction and brand positioning in the minds of the customers. Banks should focus on other mediums showing less percentage.
60
DURATION OF BANKING RELATIONSHIP

70 60 50 <1 year 1-3 years 3-5 years >5 years
% of respondents
40 30 20 10 0
ICICI Bank
Other Pvt. Banks Banks
Nationalized Banks
ICICI Less than 1 year 1-3 years 3-5 years More than 5 years Bank 16 20 1 0
% 43. 2 54. 1 2.7 0
Other Pvt. Banks 10 8 5 1
% 41. 7 33. 3 20. 8 4.2
Nationalized Banks 2 11 6 26
% 4.4 24.4 13.3 57.8
INTERPRETATION:
Of the 37 respondents from ICICI Bank, approximately 43.2% are having account in the bank from the past 1-3 years. This is mainly because of the branch being new in Noida region. The response was good in nationalized banks, which was 57.8% approximately. The reason for such response is their establishment
61
from the long time, trust of general public and continuation of banking relationship from the past generation in most of the families. 41.7% respondents in the other private sector banks category have their accounts from less than a year. Thus, ICICI Bank is on the better side in comparison to other private sector banks category. But, it has to go a long way competing with the nationalized banks in Noida.
FACILITIES PROVIDED
200 180 160
% of respondents
140 120 100 80 60 40 20 0 Nationalized Banks Other Pvt. Banks ICICI Bank
8 to 8
GC
Demat
ACD
FD+S
Facilities
Cash M
Inv. M
Ins.
62
INTERPRETATION:
ICICI 1 8 to 8 banking 2 Anywhere cash deposit facility 3 99.9% pure gold coins 4 3 in 1 demat account facility 5 Fixed deposit facility with savings account 6 Insurance services under one roof 7 Efficient portfolio/ Investment management 8 Cash management services 23 Bank 35 32 26 25 33 30 21
% 94. 6 86. 5 70. 3 67. 6 89. 2 81. 1 56. 8 62. 2
Other Pvt. Banks 0 8 0 0 9 14 4
% 0 33. 3 0 0 37. 5 58. 3 16. 7
Nationalized Banks 3 5 0 2 30 14 6
% 6.7 11.1 0 4.4 66.7 31.1 13.3
12
50
10
22.2
The % shows the total % of respondents from respective banks. The figures show that customers are not aware about the complete products and services provided by the banks. This is a limitation on the part of banks. They should make their customers aware about their products through various promotional channels, as setting up delivery channels and customer awareness is a part of marketing strategy.
63
The figures for nationalized banks are very less either because of non-awareness among customers or some of the nationalized banks dont provide all the facilities.
RATING OF AD EFFORTS
60 50
Excellent Good Average Poor
% of respondents
10
20
30
40
ICICI Bank
Other Pvt. Banks
Nationalized Banks
Banks
Excellent Good Average Poor
ICICI Bank 6 21 10 0
% 16. 2 56. 8 27. 0 0
% 25. 0 16. 7 58. 3 20. 8
% 8.9 46.7 44.4 0
INTERPRETATION: The figures in % show that the majority rated the advertising efforts of ICICI Bank and Nationalized Banks as good. While it was not so in case of other private sector banks in Academy of Technology & Management (GBS), New Delhi 64
which 58.3% of the banks customers rated the efforts as average. Overall, the advertising efforts of ICICI Bank are good in comparison with other banks. But, it has to improve its efforts, as majority of its customers are not aware of its products and services.
BEST METHOD FOR PROMOTION
200 180 160
No. of respondents
140 120 100 80 60 40 20 0 ICICI Bank Other Pvt. Banks Nationalized Banks
O D to D GS MP TV&R L N H&P
Banks
65
ICICI Hoardings and paintings (H&P) Newspapers (N) Literature (L) TV and Radio (TV&R) Mouth Publicity (friends/relatives)(MP) Gift Schemes (GS) Door to Door Service (D to D) Other, please specify (O) INTERPRETATION: Bank 9 13 6 14 4 13 8 0
% 24. 3 35. 1 16. 2 37. 8 10. 8 35. 1 21. 6 0
Other Pvt. Banks 9 8 0 3 9 8 5 0
% 37. 5 33. 3 0 12. 5 37. 5 33. 3 20. 8 0
Nationalized Banks 13 7 1 8 7 17 13 0
% 28.8 15.6 2.2 17.8 15.6 37.8 28.8 0
As per customers opinion, the best method of promotion for ICICI Bank should be TV and radio, at second place- newspapers and gift schemes. But, on the contrary, the source of their knowledge about the bank was mostly hoardings and paintings. So, bank should focus on this response of its customers. The result for other private and nationalized banks holds true as per the opinion of customers and actual medium of knowledge.
66
ATM WITHDRAWAL LIMIT

80 70 60
10,000 15,000 20,000 25,000
% of respndents
50 40 30 20 10 0 ICICI Bank Other Pvt. Banks Nationalized Banks
Banks
ICICI Bank Rs.10,000 3 Rs.15,000 Rs.20,000 Rs.25,000 6 0 28
% 8.1 16. 2 0 75. 7
% 19. 0 28. 6 0 52. 4
Nationalized Banks % 36 80.0 7 1 1 15.6 2.2 2.2
67
INTERPRETATION:
Though ICICI Banks ATM maximum withdrawal limit in 24 hours is Rs.25,000, but 24.3% of its customers response was different. This is due to lack of awareness among its customers. There is an added advantage to ICICI customers as they are allowed more withdrawal limit in a day than many other banks especially nationalized banks which generally allows withdrawal limit upto Rs.10,000 or Rs.15,000. Though 52.4% customers of other private banks also said that the withdrawal limit is Rs.25,000, but, the proportion is less than that of ICICI Bank.
68
SIMPLICITY OF SERVICES
100 90 80 % of respondents 70 60 50 40 30 20 10 ICICI Bank Nationalized Banks Other Pvt. Banks 0
Statements/Pass book Account opening
Loan services
Banks
69
Simplicity Account Opening Understanding Statements/Passbook Loan Services INTERPRETATION:
ICICI Bank 24 28 8
% 64.9 75.7 32.0
Other Pvt. Banks 20 18 15
% 83.3 75.0 100.0
Nationalize d Banks 40 45 16
% 88.9 100.0 55.2
Most of the respondents from ICICI Bank rated the account opening process, understanding of statements and availing loan services as complex in comparison to other banks. The process of account opening in ICICI Bank was rated relatively complex because of the guideline of depositing the cheque of minimum Rs.15,000 while opening the account, which is not possible for lower income group people with less savings. All the customers of nationalized banks rated the understanding of passbook as simple. The same was rated as almost equal in ICICI Bank and other Private Banks. This rating is comparatively low which may be due to lack of knowledge and awareness. The % of loan services is very less as most of the respondents have not availed this service so far.
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REASON FOR CHOICE

90 80 70
% of respondents
Easy access Value for money Customer satisfaction Brand name
60 50 40 30 20 10 0
ICICI Bank
Other Pvt. Banks
Nationalized Banks
Banks
ICICI Easy access Value for money Customer satisfaction Brand name Bank 26 7 24 31
% 70. 3 19. 0 64. 9 83. 8
% 58. 3 54. 2 83. 3 83. 3
% 44.4 66.7 35.6 42.2
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INTERPRETATION: The data shows that though the services of ICICI Bank are easily accessible, but the efficiency of delivering promised services is not as per customers expectations as shown by relatively low customer satisfaction. In case of other private banks, the response was same from easy access and brand name parameters. But, the satisfaction level is less. Nationalized Banks are chosen mainly because of the value for money that they provide. Otherwise, satisfaction from this sector is also less.
SATISFACTION FROM FOLLOWING SERVICES

100 90 80 70
Direct visit Internet banking phone banking ATM services Action on complaints/requests Other services
ICICI bank Other Pvt. Banks Nationalized Banks
% of respondents
60 50 40 30 20 10 0
Banks
ICICI Direct visits Internet banking Phone banking Bank 29 13 18
% 78. 4 35. 1 48.
Other Pvt. Banks 24 8 18
% 100. 0 33.3 75.0
Nationalized Banks 28 8 10
% 62.2 17.8 22.2
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ATM services Action on customer complaints/requests Other services
31 23 10
6 83. 8 62. 2 27. 0
16 18 14
66.7 75.0 58.3
29 13 13
64.4 28.9 28.9
INTERPRETATION:
As per the data, the % of satisfied respondents from direct visits in ICICI Bank is less in comparison to other private banks. On the other hand, the satisfaction level is highest from ATM services in ICICI Bank. In other services, the % is less because most of the respondents have not availed those services yet or they are not aware of those services. However, the data shows a better picture for other private banks in which most of the customers are satisfied. Nationalized Banks showed poor results in comparison to other banks. There is less customer satisfaction.
73
OVERALL SATISFACTION LEVEL

80 70
% of respondents
60 50 40 30 20 10 0 ICICI Bank Other Pvt. Banks Nationalized Banks
Banks
Banks % of respondents
ICICI Bank 75.7
Other Pvt. Banks 75.0
Nationalized Banks 57.8
74
INTERPRETATION:
The figure above shows that the satisfaction level in ICICI Bank and other private banks is almost same, though ICICI Bank showed a slightly greater satisfaction level. The satisfaction level is the least in nationalized banks due to long waiting lines, favoritism, less focus on customer convenience and comfort and discourteous employees attitude. The courteous staff and efficiency in delivering Services is a lus point in a private sector bank
AGE GROUP
35 30 25
No.of respondents
20 15 10 5 0 18-25 26-35 36-45 46 & above
Age(in years)
Age No. of respondents
1825 23
2635 32
3645 29
46 & above 16
75
INTERPRETATION:
The data was collected covering every age group of the society dealing with banks. Most of the respondents fall under the age group of 26-35 years.
GENDER GROUP
28%
Male Female
72%
INTERPRETATION:
Most of the respondents were males. Males constitute the 259.2 degree of the pie while female constitute the remaining 100.8 degrees.
76
77
CHAPTER 9- RESULT ANALYSIS

Banking Sector- Results Review- A mixed bag
The Indian banking sector during the December quarter posted mixed results. Although this was on expected lines, some of the banks showed a huge variation. I have tried to understand the trend in the December quarter results. I have formed three analytical groups to understand the result pattern. These are the public sector (PSU), private sector-ex ICICI Bank and ICICI Bank. The universe of banks for the said study is as follows:
Sr No 1 2 3 4 5 6 7 8 9 10
Public Sector State Bank of India Punjab National Bank Bank of Baroda Canara Bank Oriental Bank of Commerce Bank of India Union Bank Corporation Bank Andhra Bank Vijaya Bank
Private Sector ICICI Bank HDFC Bank UTI Bank IDBI Bank ING Vysya Bank Jammu and Kashmir Bank Kotak Bank
78
Comparison between ICICI Bank v/s other private sector banks v/s public
Pvt Banks ex-ICICI PSU Banks Growt Period to (Rs mn) Interest Income 12/04 12/03 (3) (3) 190,017 177,003 (104,656 (105,900 ) ) h (%) 7.4 12/04 12/03 (3) (3) 22,554 19,340 Bank ICICI Bank Growt 12/04 12/03 Growt h h (%) (3) (3) (%) 16.6 23,784 21,917 8.5 (16,452 (17,067 (3.6) ) 7,331 ) 4,850
Interest Expenses Net Interest Income Other Income Total Income Operating Expenses Operating Profit Provisions & Contingencies PBT Tax PAT Interest on advances Interest on investments Interest on Balances Payment/Provisio
(1.2) (12,112) (10,746) 12.7
51.2
85,361 71,104 41,293 35,502 126,654 106,606
20.1 16.3 18.8
10,442 8,594 5,053 4,871 15,495 13,465
21.5 3.7 8,908 8,130 15.1 16,239 12,980
9.6 25.1
(58,213) (49,087) 68,441 57,519
18.6 19.0
(7,435) (5,721) 30.0 (8,527) (6,453) 8,060 7,744 4.1 7,712 6,527
32.1 18.2
(38,021) 30,420 (6,835) 23,586
(19,194) 98.1 (2,111) (2,079) 1.5 (1,082) (1,370) (21.0) 38,325 (20.6) 5,949 5,665 5.0 6,630 5,157 28.6 (11,259) (39.3) (1,682) (1,725) (2.5) (1,453) (756) 92.2 27,066 (12.9) 4,267 3,940 8.3 5,177 4,401 17.6
94,730
81,042
16.9
13,098
9,932
31.9 17,099 14,664
16.6
81,982
85,113
(3.7)
8,053
8,039
0.2
5,894
6,237
(5.5)
6,933
7,595
(8.7)
407
935
(56.5)
467
363
28.7
ns for Employees (39,197) (33,554)
16.8
(2,425) (1,965) 23.4 (1,846) (1,446)
27.7
sector banks:
Academy of Technology & Management (GBS), New Delhi 79
The PSU sector showed strong core income growth due to robust business. Although interest income did not show a great picture, interest on advances figure gave a better indication. Despite no incremental growth in interest on investments, interest income still managed to post decent growth number on back of good growth in interest on advances. Employee expenses continued to grow at steady rate of around 17%. This figure is inclusive of the VRS expenses. The next fiscal figure is expected to show a lower growth, as most of the PSU banks are in their last year of VRS expenditure amortization. Provisioning for the PSU banking group registered a huge rise as most of the top PSU banks refrained from transferring securities to the held to maturity (HTM) basket in the September quarter. The private sector banks stood out among the sector during the December quarter results. While most of the PSU peers posted negative growth in profits, the private sector peers managed to post a decent profit growth of 13%. The private sector banks posted a strong net interest income growth through higher level of growth in interest income. Drop in interest cost for ICICI Bank has kept the private bank groups interest cost with a marginal growth. Operating expenses for the private sector banks continue to grow at a much faster rate, at around 30%. The private sector banks have market linked pay structure for the employees apart from the strong thrust on retail lending which increases operating cost.
Contrary to PSU peers, the private sector banking groups recorded fairly normal provisioning expenditure. Few banks in the Private ex ICICI Bank registered a drop in tax provisions. Most of these banks are those with negative profit growth, trying to shore up profits.
80
The net interest income of ICICI Bank increased by 51.2%, which is more than other private and public sector banks. Though interest income of Private Banks excluding ICICI Bank was more than PSU Banks and ICICI Bank, the net interest income declined due to increase in interest expenses. Because of increase in net interest income of ICICI Bank, it recorded more growth in total income than that of other banks. Private Banks excluding ICICI Bank showed very little growth in operating profit because of high growth in operating expenses that is mainly due to employees pay structure and thrust on retail lending. The growth was almost equal in ICICI Bank and PSU Banks. PAT decreased in PSU Banks because of considerable increase in provision and contingencies. It increased slightly in Pvt. Banks ex-ICICI bank. It increased by 17.6% in ICICI Bank due to decrease in provision and contingencies. Interest on advances is a major source of income in banks. It increased almost equally in ICICI Bank and PSU Banks. But, it increased more in Pvt. Banks ex-ICICI Bank. Overall, it can be concluded that the performance of ICICI Bank is better than PSU Banks as well as other Pvt. Sector banks.
Ratio analysis:
Pvt Banks ex-ICICI PSU Banks Bank ICICI Bank
81
Period to (Figures in %) Other Income/ Total Income Interest Expense/ Interest
12/04 (3)
12/03 Growth 12/04 (3) (%) (3)
12/03 Growth 12/04 12/03 Growth (3) (%) (3) (3) (%) 54.9 62.6 (7.7) 36.2 (3.6) 69.2 77.9 (8.7)
32.6
33.3
(0.7)
32.6
Income 55.1 Cost / Income 46.0 Employee Cost/ Total Cost 67.3
59.8 46.0 68.4
(4.8) (0.1) (1.0)
53.7 48.0 32.6
55.6 42.5 34.3
(1.9) 5.5 (1.7)
52.5 21.6
49.7 22.4
2.8 (0.8)
Ratio analysis shows the same trend for private banks as their PSU counterparts, the striking difference has been the cost to income ratio. Private banks due to a rise in their operating expense reported a rise in cost to income ratio. Most of the rise has come through nonemployee costs, which are a result of a greater thrust on retail products, which require a higher publicity budget and increased investment in infrastructure. The decline in interest expense to total income in ICICI Bank was more which shows that it has reduced its expenses in total income. Though other banks also reported the same, but it was less than ICICI Bank.
82
83
CHAPTER 10- SWOT ANALYSIS

STRENGTH:
Brand name: ICICI Bank is the countrys second largest bank and has a brand name. It is a brand that has ridden the crest of the recent consumerism in the country, and has become a strong case of how brands can drive businesses, and how to build a strong brand in a short time. Wider reach: ICICI Bank has been on an expansion spree. It is also leveraging on a large ATM network in order to augment its reach further. Due to the aggressive branch and ATM network expansion, the bank has been able to grow its retail assets significantly. Going forward, the bank is in a good position to tap the retail market due to its expanded reach. 8 to 8 banking: The banks working starts from 8a.m. to 8p.m. 6 days a week, even on Saturday, which is found to be very convenient for customers especially businessmen who can transact in bank before going to their business. This facility is not provided by even the countrys largest bank-State Bank Of India. Anywhere cash deposit facility: The customers of ICICI Bank can deposit from any of its branches across the country. The transaction if free once a month and after that nominal charge is to be paid, which is debited automatically from the amount being deposited. The charges are Rs.11 or Rs.5 per 1000 whichever is more. Efficient services: The bank deserves kudos for its efficient services from opening a simple saving account to providing other services like portfolio management and demat services. Customers are provided with hand-to-hand free kit of cheque book
84
and ATM cum debit card. The bank also provides the facility of same day DD clearance to its customers.
Cash Management Service (CMS): The current account holders are provided
CMS facility in which all the cheques and DD are cleared the same day even if the cheques are out station. This facility is not meant for other account holders.
Courteous services: The bank not only provides efficient but courteous services
too. They are treated with due courtesy in every branch of ICICI Bank which gives its customers a feeling of comfort and satisfaction with all the queries being handled within the branch itself.
Focus on customer convenience:
The bank provides host of services
under one roof. Gold coins, insurance, trading in shares etc. to name a few.
WEAKNESS:
Strict guidelines: Some of the guidelines are considered strict and not suitable for
every person as per the opinion of customers. For example: for opening savings account in ICICI Bank, the person has to deposit a cheque of minimum Rs.15,000 and quarterly average balance has to be Rs.5,000. Thus, a person must be having account in another bank also to have an account in ICICI Bank. This is not considered justified by some customers who have less income and savings and cannot maintain such balance. This is also one of the reasons of closing of the account by the customers.
Focus on class banking: The bank is mainly focused on class banking and not
mass banking. But, the bank is witnessing mass banking in some locations. Thus, it is concentrating on eliminating the customers who are not giving any profit to the bank by imposing charges, the target being class people with high margins and savings.
85
Less sales force: The bank is having less force than it needs to create more
awareness among general public. Increase in the number of sales team can help the bank in expanding its network and customer base.
OPPORTUNITY:
Growing niche market: There is the opportunity to explore the growing niche
market in rural and semi-urban areas.
Increase in income: The rising income of people with the economy being
growing is also an opportunity to exploit. With increase in income, savings also increase and thus leading to increase in investment also. So, this opportunity can be exploited fully to increase the spread.
Growing customer awareness: These days, customers are getting more and
more aware about the products of banks. They are now in a better position to decide which bank to choose to deal with. They want not just variety of services, but efficiency in delivering those services, which can give them satisfaction. ICICI bank being widely known for its efficiency in services can play on its strength ands exploit this opportunity to the fullest.
Advancing technology: This sector is related with the technology. With the
advancement in technology like future ATMs by using biometrics recognizing the customers by their face, voice or fingerprints can prove to be an opportunity. By imbibing such kinds of technological changes at the earliest, the bank can become NO.1 in changing technology with change in time.
Shift in preference of customers: The customers of many nationalized banks

are now changing their preference towards private sector banks because of some loopholes in Academy of Technology & Management (GBS), New Delhi 86
nationalized banks and filling of unsatisfied needs of customers by private sector banks. ICICI Bank with its brand name and wider reach can be the beneficiary because of this shift.
Changes in governments policies: The recent change in the governments

policies also provides opportunities. For example- The finance ministry spelt out structure of the government-sponsored ARC called the Asset Reconstruction Company (India) Limited (Arcil), this pilot project of the ministry would pave way for smoother functioning of the credit market in the country. The Government will hold 49% stake and private players will hold the rest 51% - the majority being held by ICICI Bank (24.5%).
THREAT:
Competition: Competition in banking sector is growing at a rapid pace with the

economy becoming liberalized and opening up of this sector to FDI. Foreign entrants are giving a challenge to domestic banks to provide something different to its customers. This poses a threat to banks and if not considered seriously by any bank, can become the reason for decline in the customer base.
87
CHAPTER-11 RECOMMENDATIONS AND SUGGESTIONS
88
11.1 Recommendations: After conducting the survey, following recommendations can be suggested to the bank. Hope they will help the bank in achieving excellence.
More customer convenience: Flexibility in account opening procedure should

be introduced on presenting authentic evidences by the customers. For exampleaccounts should be opened with cash also and the limit of quarterly average balance should be decreased.
Services for businessmen: The bank should provide special facilities to

businessmen in rural and semi-urban areas also. For example- the facility of commercial loans and working capital finance should be provided.
Rural Banking: The vast scope of rural banking in nearby places of Noida should
be explored through provision of crop loans, loans for agricultural equipments etc. The bank can also tap the untapped potential for banks presence by establishing more communication and delivery channels.
Social Banking: The bank can promote social banking through provision of loan
schemes to educated unemployed, women and for the education of poor children. Such loans can be provided without any security and at lower rates of interest.
89
11.2SUGGESTIONS
The cutthroat competition of 21st century demands not just a satisfied but delighted customer as a key to success in a service industry. As per the survey conducted, customers attitude is changing with the change in preference from nationalized to private sector banks because of wide difference in the efficiency of services provided. Long waiting lines, discourteous employees attitude, favoritism, lack of attention towards the convenience and comfort of customers are the loopholes that came in light during the data collection process. Many Indian public sector banks have even ignored the technological change, and have acceded market share to foreign banks and new private banks. While on the other hand, ICICI Banks easy access in terms of wider reach, healthy organizational culture, courteous bahaviour of employees, customer focus and embracement of technology have been repeatedly appreciated. Also, improved advertising efforts, embracement of latest technology, more and more awareness about internet banking thus facilitating customers while providing solutions at their convenience and easy reach and an approach to target the lower income group constituting about 30% of the city population can serve to be the milestones in ICICIs success story. And yet, the journey has only just begun.
90
91
QUESTIONNAIRE
Q.1. Which bank/s are you banking with? ICICI Bank Other Pvt. Banks Nationalized Banks
Q.2. Which occupational groups do you belong to?

Business Service Self employed Other, please specify
Q.3. Under which income groups do you fall?

Rs.5,000 to Rs.10,000p.m. Rs. 10,000 to Rs. 20,000p.m. Rs. 20,000 and above
Q.4. How do you come to know about your bank? ICICI Bank Hoardings and paintings Newspapers Literature TV and Radio Mouth Publicity(friends/relatives) Gift Schemes Door to Door Service Other, please specify Q.5. For how long are you having the banking relationship with your bank? Other Pvt. Banks Nationalized Banks
92
ICICI Bank Less than 1 year 1-3 years 3-5 years More than 5 years
Other Pvt. Banks
Nationalized Banks
Q.6. Does your bank provide following facilities? ICICI Bank 1 2 3 4 5 8 to 8 banking Anywhere cash deposit facility 99.9% pure gold coins 3 in 1 demat account facility Fixed deposit facility with savings Other Pvt. Banks Nationalized Banks
account 6 Insurance services under one roof 7 Efficient portfolio/ Investment management 8 Cash management services Q.7. How would you rate the advertising efforts of your bank? ICICI Bank Excellent Good Average Poor Q.8. Best method for promotion of banks products as per your opinion ICICI Bank Hoardings and paintings Newspapers Literature TV and Radio Mouth Publicity(friends/relatives) Gift Schemes Door to Door Service Other, please specify Other Pvt. Banks Nationalized Banks Other Pvt. Banks Nationalized Banks
93
Q 9.Upto what limit can you withdraw from your banks ATM in a day? ICICI Bank Rs.10,000 Rs.15,000 Rs.20,000 Rs.25,000 Q.10. How would you rate the services of your bank in the following segments? ICICI Bank Other Pvt. Banks Nationalized Banks Simple Complex Simple Complex Simple Complex Account opening Statements issued Loan services Other Pvt. Banks Nationalized Banks
Q.11. Please mention the reason for your choice of the bank? ICICI Bank Easy access Value for money Customer satisfaction Brand name Other Pvt. Banks Nationalized Banks
Q.12. Are you satisfied with the services provided under following segments? ICICI Bank Direct visits Internet banking Phone banking ATM services Action on customer complaints/requests Other services Other Pvt. Banks Nationalized Banks
Q.13. If dissatisfied, why? ...
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Name: Age:.. Gender:.
95
BIBLIOGRAPHY
Marketing Management
PHILIP KOTLER
Marketing Research
C.R.KOTHARI
Annual report of ICICI Bank Limited
Brochures of Banks
The Economic Times
Websites:
www.icicibank.com
www.hdfcbank.com
www.statebankofindia.com
www.indiatimes.com
96

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A PROJECT REPORT

MARKETING OF FINANCIAL PRODUCTS OF ICICI BANK LTD. NOIDA

Academy of Technology & Management (GBS), New Delhi

DATE : PLACE: (Priya Narwal)

Academy of Technology & Management (GBS), New Delhi

ICICI BANK LTD.

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

MECHANISM FOR PRESERVING COMPETITION

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

CHAPTER 2-EXECUTIVE SUMMARY

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

CHAPTER 3- LITERATURE REVIEW

Academy of Technology & Management (GBS), New Delhi

SWOT Matrix Strengths:

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

CHAPTER 4- COMPANY PROFILE

Academy of Technology & Management (GBS), New Delhi

How ICICI Identified Brand Values

Academy of Technology & Management (GBS), New Delhi

Awards and Recognition for ICICI Bank

Best Bank by Business India

Academy of Technology & Management (GBS), New Delhi

Academy of Technology & Management (GBS), New Delhi

CHAPTER 5- PRODUCT PROFILE

Savings Account: ICICI Bank offers its customers a power

Academy of Technology & Management (GBS), New Delhi

Phone Banking Anywhere Banking Standing instructions Nomination facility

Fixed Deposit: It ensures safety, flexibility, liquidity

Academy of Technology & Management (GBS), New Delhi

Wide range of tenures Auto renewal possible Loan facility available

Recurring Deposit: When expenses are high, people

Roaming Current Account: Only Roaming Current

More Useful Facilities

Senior Citizen Services: As a person reaches the age

Academy of Technology & Management (GBS), New Delhi

Young Stars Account: It's really important to

Academy of Technology & Management (GBS), New Delhi

: It is a student banking service, a technology-enabled service, through automated channels,

Academy of Technology & Management (GBS), New Delhi

Attractive interest rates

Door-step service from enquiry stage till final disbursement

Can transfer existing high-interest rate loan

Free personal accidental insurance

Special 100% funding for select properties

Special Rates- Summer Bonanza 2005

Academy of Technology & Management (GBS), New Delhi

Special Rate - Summer Bonanza 2005

Adjustable Rate Home Loans

Rate of Interest Applicable ROI

EMI per lack (Rs.)

FRR -1.00% FRR -1.00%

Academy of Technology & Management (GBS), New Delhi