SYNOPSIS OF THE PROJECT FOR FULFILLMENT OF MBA COURSE UNDER IGNOU

PROJECT TITLE: THE

PERCEPTION AND CONCEPTION OF CUSTOMERS TOWARDS BANKING

PRODUCTS AND SPECIALLY FOCUSED FOR

IDBI BANKS PRODUCT

(SAKET).

A. RATIONALE OF THE STUDY:

Banking Industry which is basically my concern industry around which my project is to be revolved is really a very complex industry. A n d t o w o r k f o r t h i s i s r e a l l y a c o m p l e x a n d h e c t i c t a s k a n d f e w times I felt so frustrated that I thought to left the project and go for any new industry and new project. Challenges which I faced while doing this project are followingBanking sector is quite similar in offering and products and because of that it is very difficult to discriminate between our product and products of the competitors.

Target customers and respondents are too busy persons that to get their time and view for specific questions is very difficult. Sensitivity of the industry is also a very frequent factor which is very important to measure correctly.
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Area covered for the project while doing job also is very large and it is very difficult to correlate two different customers/ respondents views in a one. Every financial customer has his/her own needs and according to the requirements of the customer product customization is not possible. So above challenges some time forced me to leave the project but ultimately I d i d m y p r o j e c t i n f a c i n g a l l t h e c i r c u m s t a n c e s . B a s i c a l l y i n t h i s p r o j e c t , I analyzed that-W h a t f a c t o r s a r e r e a l l y r e s p o n s i b l e f o r p e r f o r m a n c e o f I D B I B a n k s performance in this competitive era? 1Industry status & IDBI Banks interface Industry introduction. T h e Indian Banking

i n d u s t r y , w h i c h i s g o v e r n e d b y t h e B a n k i n g Regulation Act of India, 1949 can be broadly classified into two major c a t e g o r i e s , scheduled banks and scheduled banks. Scheduled banks non-

comprise

commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into n a t i o n a l i z e d b a n k s , the State Bank of India amongst others and its group banks, regional rural banks(RRBs) and private sector banks (the old/ new domestic and foreign). These banks have over 67,000 branches spread across t h e c o u n t r y i n e v e r y c i t y a n d v i l l a g e s o f a l l n o o k a n d c o r n e r s o f t h e land. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank has to remark a minimum percentage of

their loan portfolio to sectors identified as priority sectors. The manufacturing sector also grew during the 1970s in protected environs a n d t h e b a n k i n g s e c t o r i s a c r i t i c a l source. The next wave of reforms saw the nationalization of 6 more c o m m e r c i a l b a n k s i n 1 9 8 0 . S i n c e t h e n
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the number of scheduled c o m m e r c i a l b a n k s i n c r e a s e d

four-

f o l d a n d t h e n u m b e r o f b a n k branches increased eight-fold. And that is not the limit of growth. After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and t h e foreign banks. The new private sector banks first made their appearance in J a n u a r y after the guidelines new permitting private them were issued are

1993.Eight

sector

banks

p r e s e n t l y i n operation. These banks due to their late start have access to state -of- t h e - a r t t e c h n o l o g y , w h i c h i n t u r n h e l p s t h e m t o s a v e o n m a n p o w e r costs. During the year 2000, the State Bank of India (SBI) and its 7 associate banks accounted for a nearly 25 percent share in deposits and 28.1 percent share in c r e d i t . T h e 2 0 n a t i o n a l i z e d b a n k s a c c o u n t e d f o r 5 3 . 2 p e r c e n t o f t h e deposits and 47.5 percent of credit during the same period.

B. OBJECTIVE OF THE STUDY :

The subject matter for this Project is to study the customer preference towards the various IDBI bank products and particularly towards SAKET. This Project comprises of different objectives. They are as follows i. To find out about environmental factors I D B I Banks performance. ii. To analyze the role of advertisement for IDBI banks performance. affecting

iii. T o f i n d o u t t h e p e r c e p t i o n a n d c o n c e p t i o n o f c u s t o m e r s towards banking products and specially focused for IDBI Banks product (SAKET). iv. To find out the potential areas for the new bank branches which will provide both price and people to the bank with constant promotion and placing strategy.
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C. SCOPE OF THE STUDY

Each and every project study along with its certain objectives a l s o has scope for future. And this scope in future gives to new researchers 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 a l s o g i v e s i d e a a b o u t a n e w

b u s i n e s s w h i c h b e c o m e s m u c h m o r e profitable for the researches then the older one. Scope of the study could give the projected scenario for a new s u c c e s s f u l s t r a t e g y w i t h a p r o p e r i m p l e m e n t a t i o n p l a n . W h a t e v e r scope I observed in my project are not exactly having the entire feature so the scope which I

d e s c r i b e d a b o v e b u t a l s o n o t l a c k i n g a l l t h e features. Research study could give an idea of network expansion f o r c a p t u r i n g more market and customer with better services and lower cost, w i t h o u t c o m p r o m i s i n g w i t h t h e quality. In future customer requirements could be added with the product and services for getting an edge over competitors. Consumer behavior could also be used for the purpose of launching a n e w p r o d u c t w i t h e x t r a benefits which are r e q u i r e d by customers for their account

( s a v i n g o r current) and/or for their investments. F a c t o r s w h i c h a r e r e s p o n s i b l e for the performance for bank can also be used for the modification of t h e strategy and product for being more profitable. Factors which has to be kept in mind while doing project study are as follows:
1. Competitors 2. Customer Behavior 3. Advertisement/ promotional activities 4

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 p l a n t o a f f e c t t h e m a r k e t w i t h a p o s i t i v e way without d i s t u r b i n g a l o t t o m a r k e t , c u s t o m e r s a n d c o m p e t i t o r s with

disturbance in market shares.

D. RESEARCH METHODOLOGY OF THE STUDY

PRIMARY DATA:
Primary data is basically the live data which I collected on field while doing cold calls with the customers and I had shown them list of questions for which I had recorded their responses. In some cases I got no responses from their side and then, on the basis of my previous experiences, I filled those fields.

Source: M a i n s o u r c e f o r t h e p r i m a r y d a t a f o r t h e p r o j e c t i s
q u e s t i o n n a i r e s which I got filled by the customers or sometimes filled by me on the basis of discussion with the customers.

SECONDARY DATA:
Secondary data are those, which are already been collected by someone else and passed through statically proven process. The Secondary data required of the research are collected through various newspapers, internet, RBI bulletins, books, journals etc

Statistical Analysis
In this segment I will show my findings in the form of g r a p h s a n d charts. All the data which I got form the market will not be disclosed over here but extract of that in the form of information will definitely be here.

Tools and Techniques

As no study could be successfully completed without proper tools and t e c h n i q u e s , same with my I project. will For the better of presentation and and right

explanation

use

tools

statistics

computer

v e r y frequently. And I am very thankful to all those tools which are readily available in electronic market . Basic tools which I intend to use for completing my project from statistics are-- Bar Charts - Pie charts - Tables

Bar charts and pie charts are really useful tools for every research to show the result in a well clear, ease and simple way. I intend to use bar charts and pie charts in project for showing data in a systematic w a y , s o i t n e e d n o t b e n e c e s s a r y f o r a n y o b s e r v e r t o r e a d a l l t h e theoretical details, simple on seeing the charts anybody could know that what is being said.

Technological Tools:
1. 2. 3.

MS- Excel MS-Access MS-Word

Above application software of Microsoft are useful tools which will m a k e project more interactive and productive. Microsoft-Excel has a greater role in my project, it will create for m e a situation of you sit and get. I will provide it simply all the detail of data and in return it will give me all the relevant information. Microsoft-Access can do the performance of my personal assistant who will organize my all the details of document without disturbing them even a single time in all during project study. And in last Microsoft-Word will do the documentation of the project in a presentable form.

Applied Principles and Concepts:

While I started to do the proposal the main thing which is the matter o f concern is that around what principles I have to revolve my project. Because without having any hypothesis and objective we cannot determine that what output or result we are expecting form the project.

And second thing is that having only tools and techniques f o r t h e purpose of project is not relevant until unless we have the principals for which we have to use those tools and techniques.

For the purpose of project, data is very much required which works as a f o o d f o r p r o c e s s w h i c h w i l l u l t i m a t e l y g i v e o u t p u t i n t h e f o r m o f information. So before mentioning the source of data for the project I would like to mention that what type of data I had to be collected for the purpose of completion of project and what it is exactly. C o r r e l a t i o n b e t w e e n a w a r e n e s s o f c u s t o m e r s a b o u t IDBI bank & their Age: Age 20-25 25-30 30-35 35-40 40-45 45-50 50-60 60-Above No. of response 25 46 34 23 21 22 24 55

D) EXPECTED

CONTRIBUTION FROM THE STUDY:

1.

Consumers of Saket have good awareness level about IDBI bank as well as

about its services and products. 2. The advertising campaign has successfully been able to increase the market share of

IDBI in Saket. 3. 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 consumers. 4. The network of IDBI in Saket is lagging behind a little than its competitors like

ICICI bank and HDFC bank. 5. It can be distilled from the data that IDBI bank has good market share as

compared to its competitors considering the amount of resources deployed by them in the market.

E) LIMITATION OF THE STUDY:

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 SAKET in region and hence has an opportunity for growth. 3 . T h e p r o d u c t s o f I D B I b a n k h a v e g o o d c r e d i b i l i t y i n t h e region compared to its competitors. 4 . T h e a d v e r t i s e m e n t o f t h e b a n k i s v e r y e f f e c t i v e f r o m the first day of its airing till the fifth day and thereafter it starts declining. 5. T h e i n i t i a l b a l a n c e f o r A / C o p e n i n g i s R s , 5 0 0 0 / - a n d thats why people are reluctant in opening the same.
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