2. An overview of the Banking
Sector
• Banking in India in the modern sense originated in the
last decades of the 18th century. The first banks were
Bank of Hindustan (1770-1829) and The General Bank
of India, established 1786 and since defunct.
• The total assets of all scheduled commercial
banks by end-March 2010 is estimated at Rs
40,90,000 crores.
• Credit growth in Indian banks grew 1.2% as
of September 2012
• Deposits were up by 3.7% according to data
released by RBI in FY2012.
3.
4. Opportunities in Banking sector
• Mortgages to cross Rs 40 lakh crores by
2020
• Wealth Management to be a big business
• Rapid growth of branches & ATMs
• Mobile banking to see huge growth
• Infrastructure financing to reach over Rs.
20 trillion on Commercial banks book by
2020
• New Models to serve the Small & Medium
Enterprises (SME)
5. Key Challenges in Banking
Sector
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Introduction of Basel 3 Norms
Intensifying Competition
Increasing NPA
Licensing Requirement
Managing Human Resources
6. Major Players in Banking
Sector
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State Bank of India
HDFC
Axis Bank
Bank of India
Punjab National Bank
Bank of Baroda
ICICI Bank Ltd.
Union Bank of India
Canara Bank
Citibank
7. Trends in Banking Sector
• Banks have been focusing on secured lending products
(such as mortgage and auto loans) for retail customers
to drive credit off take.
• Policy uncertainty over the micro finance institutions
and recent changes to banks credit off take to non
banking.
• Pressure to meet targets under Financial Inclusion also
increased the cost of lending and decreased returns on
advances for banks.
• Pressure to meet targets under Financial Inclusion also
increased the cost of lending and decreased returns on
advances for banks.
• In the mid quarter review of the monetary policy, RBI
cut the CRR by 25 basis points from 4.75% to 4.5 %
(effective the fortnight beginning September 22,2012),
to inject Rs.170 billion into the banking system.
8. THE MARKETING MIX OF THIS SECTOR
• PRODUCT
• Core product
The core product of banking basically comprises of
safekeeping of customers valuable.
The main products of AXIS Bank are Saving Account,
Current Account and Demat Account. The other
products are Home loan, personal loan, Insurance,
Credit cards, etc.
Supplementary product
e-broking, advisory function, trusteeship services,
debt solution, equity solution, selling gold bars 24
carats, mobile recharge, trading in currency future etc.
10. PRICE
Inspite of the constraints in the pricing policy due to
the RBI directives there are mainly three types of
pricing methods adopted by HDFC banks. They are:
• Value pricing
• Going rate pricing
• Mark up pricing
11. Promotion
• Name changed from UTI Bank to Axis bank creating
a global modern bank image
• Tie up with dish TV
• Television Advertisement
• Print media
• Publicity
• Personal selling
• Tele marketing
12.
13. Physical Evidence
• Bank Branch
• Cheque book
• Bank brochure
• Statement of accounts
• Logo
• ATM
• Financial Report
• Tangibles (pens, writing pads, passbook, cheque book, credit
card, debit card, visa card)
• Parking
• Employee’s Uniform
• Seats
• Counters
• Deposit and Withdraw Forms
• Other papers (loan, insurance etc.)
14.
15. Place
Some of the important factors affecting the location analysis of
a bank are:
• The trade area
• Population characteristics
• Commercial structure
• Industrial structure
• Banking structure
• Proximity to other convenient outlets
• Real estate rates
• Proximity to public transportation
• Drawing time
• Location of competition
• Visibility
• Access
16. Process
• Flow of activities
• Standardization
• Customization
• No. of store
• Simplicity
17.
18. Service Quality
Service Quality has an impact on customer
satisfaction, which in turn impacts customer’s
loyalty.
• Reliability
• Responsiveness
• Assurance
• Empathy
• Tangibles
