SBI Home Loans - Service Marketing
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SBI Home Loans - Service Marketing

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INDUSTRY PROFILE ...

INDUSTRY PROFILE

In 1969 the Indian government nationalized all the major banks that it did not already own and these have remained under government ownership.
They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks.
The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s by new private commercial banks and a number of foreign banks.

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  • 1. SBI HOME LOANS Group Members: Md. Mudassar Md. Fahim Md. Owais Md. Ruman Md. Shoaib Md. Umar Md. Asrar
  • 2. INDUSTRY PROFILE  In 1969 the Indian government nationalized all the major banks that it did not already own and these have remained under government ownership.  They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks.  The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since 1990s by new private commercial banks and a number of foreign banks.
  • 3.  Banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge.  The government has developed initiatives to address this through the State bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.
  • 4. CURRENT PERIOD  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.  The Reserve Bank of India is an autonomous body, with minimal pressure from the government.  By 2013 , banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks.  With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong.
  • 5.  Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank.  In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and personal loans.  There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.
  • 6. COMPANY PROFILE  State Bank of India (SBI) is a multinational banking and financial services company based in India.  It is a government-owned corporation with its headquarters in Mumbai, Maharashtra.  As of December 2012, it had assets of US$501 billion and 15,003 branches, including 157 foreign offices, making it the largest banking and financial services company in India by assets.  SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.
  • 7.  Bank of Madras merged into the other two presidency banks—Bank of Calcutta and Bank of Bombay—to form the Imperial Bank of India, which in turn became SBI.  SBI is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.  SBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians(NRIs). SBI has 14 SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India.
  • 8. Domestic presence  SBI had 14,816 branches in India of which 9,851 (66%) were in Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year. International presence  The Israeli branch of the State Bank of India located in Ramat Gan.  The bank had 180 overseas offices spread over 34 countries. It has branches of the parent in Moscow, Colombo, Dhaka.
  • 9.  Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the , Bahrain, and Singapore and representative offices in Bhutan and Cape Town It also has an ADB in Boston, USA.
  • 10. 7 P’S OF SBI
  • 11. PRODUCT  Core product: The basic services in banking form a basic product Eg: Accepting deposits, granting loans  Formal product: It is the set of attributes and conditions expected by the customers when they purchaser the product Eg: Insurance facilities, locker facilities, atm’s
  • 12. CONTD,  Augmented product: It is the additional feature that banks provide which exceeds the customer’s expectations Eg: Discounts, Good waiting rooms  Potential product: It includes Innovations and product differentiation. Banks alters its services according to the requirement of the individual customers Eg: Mobile and internet banking, new schemes tailored for specific customers
  • 13. PRICE  Interest rates charged  Transaction charged  Value pricing  Going rate pricing  Mark up pricing  Charges for cheque books  Commmission charges
  • 14. PLACE Important factors affecting the determination of the location of bank are:  The trade area  Population characteristics  Commercial structure  Industrial structure  Visibility  Access
  • 15. PROMOTION  Public relations  Personal selling  Word of mouth promotion  Internet  Tele marketing
  • 16. PHYSICAL EVIDENCE  It refers to the overall layout of the place i.e. how the entire bank is designed. Physical evidence refers to all those factors that makes process much easier and smoother. Eg: In banks the physical evidence would be the placement of customer service executive’s desk or the location of the place for deposting cheques.
  • 17. PROCESS  Process constitutes the overall procedure involved in using the services offered by the bank.  The process should be customer friendly  If the overall process is too complicated than the customer may not be inclined to use such services
  • 18. PEOPLE  SBI has provided employment to 222,933 people all over the world. SBI has recruited thousands of young graduates and post graduates and is yet to recruit many more. Thus, SBI has a proportionate blend of both the old and the new schools of thought.  SBI provides its employees with training facilities as and when required in order to keep them abreast with the new technologies and products that get introduced in the banking sector.  SBI has turned into the third-largest employer in India among listed companies after Coal India Limited(383,347) and Tata Consultancy Services(226,751).
  • 19. COMPETITORS
  • 20. SERVICE BLUE PRINT
  • 21. DATA ANALYSIS MINI PROJECT ON STATE BANK OF INDIA
  • 22. PROCESSING FEES 0 5000 10000 15000 20000 5000 10000 20000 20000 10000 10000 10000 10000 10000 PROCESSING CHARGE(in Rs)
  • 23. INTEREST RATES 9.4 9.6 9.8 10 10.2 10.4 10.6 10.8 11 SBI Axis bank HSBC HDFC Canara bank Bank of Baroda 9.95 10.75 11 10.525 10.25 10.5 INTEREST RATE(in %)
  • 24. EQUATED MONTHLY AMOUNT ON A LOAN OF 20 LAKHS FOR 20 YEARS 18500 19000 19500 20000 20500 21000 SBI Axis bank HSBC HDFC Canara bank Bank of Baroda 19234 20305 20644 20035 19633 19968 EMI(Equated monthly instalments,in Rs) 18500 19000 19500 20000 20500 21000 SBI Axis bank HSBC HDFC Canara bank Bank of Baroda 19234 20305 20644 20035 19633 19968 EMI(Equated monthly instalments,in Rs) 18500 19000 19500 20000 20500 21000 SBI Axis bank HSBC HDFC Canara bank Bank of Baroda 19234 20305 20644 20035 19633 19968 EMI(Equated monthly instalments,in Rs)
  • 25. SERVICE PROMISED RATES 14.71% 55.88% 3.92 % 7.84 % 17.65 % 55.88% - EXCELLENT 17.65% - VERY GOOD 14.71% - GOOD 7.84% - BAD 3.92% - VERY BAD
  • 26. ACCURATE SERVICE RATE 75.5% 12.75 % 6.86 % 4.9 % 75.5% - EXCELLENT 12.75% -VERY GOOD 6.86% - GOOD 4.9% - BAD
  • 27. INDIVIDUAL ATTENTION 45% -EXCELLENT 30% -VERY GOOD 20% - GOOD 5% -BAD
  • 28. FIRST TIME SERVICE 62.5% -VERY GOOD 15% -GOOD 12.5 –BAD 10% -VERY BAD
  • 29. OPERATING HOURS YES NO
  • 30. COMPARED TO OTHERS 65% - EXCELLENT 25% -GOOD 10% - BAD
  • 31. GAP ANALYSIS
  • 32. KEY FINDINGS  Customer friendly  Easily reached  The result of factor analysis showed that interest rate, pay back period ,speed of processing and equated monthly instalment are the four main criteria by which customers select their financial institutions.  SBI charges lowest interest rate,EMI and processing fee and provides maximum repayment period of 30 years.  Not on time service, time consuming process.
  • 33. RECOMMENDATIONS  It should tie up with private agencies to attract more customers.  It should conduct more events like GRAHAPRAVESHA.  SBI should advertise through various mediums like NEWSPAPERS, TELEVISION, INTERNET, RADIO, etc.  The result of factor analysis showed that interest rate, pay back period ,speed of processing and equated monthly instalment are the four main criteria by which customers select their financial institutions. So, SBI bank must excel on these criteria to project a good image
  • 34. LIMITATIONS  The sample size is restricted to 30 respondents due to time limit. The study is conducted considering the prevailing condition which is likely to change in future.  Due to time and costs constraints the study was limited to ONE SBI BRANCH only.  Some of the respondents were not willing to responds to our questionnaire.  Few respondents were hesitant while answering the questions.