idbi bank

A
PROJECT STUDY REPORT
ON
TITLED
“CUSTOMER AWARENESS TOWARDS RETAIL BANKING IN IDBI BANK”
Submitted in partial fulfilment for the Award of degree of
Master of Business Administration
SUBMITTED BY: SUBMITTED TO:
Ashish Parashar Dr. Jyotsana Khandelwal
MBA IVth SEM (DEAN)
APEX INSTITUTE OF MANAGEMENT & SCIENCE
2012-2014
1

CERTIFICATE
This is to certify that MR. Ashish Parashar of MBA fourth semester of Apex Institute Of
Management & Science , Jaipur, has completed her project report on the topic
“CUSTOMER AWARENESS TOWARDS RETAIL BANKING IN IDBI BANK” under the
supervision of Dr. jyotsana Khandelwal.
To my best knowledge the report is original and has not been copied or submitted
anywhere else. It is an independent work done by her.
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DECLARATION
Hereby I declare that project report entitled “CUSTOMER AWARENESS TOWARDS
RETAIL BANKING IN IDBI BANK”” submitted for the degree of Master Of Business
Administration, is my original work and the project report has not formed the basis of
the award of any diploma, degree, associate ship, fellowship or any other titles. It has
not been submitted to any other university or institution for the award of any degree or
diploma.
Place: MBA
4THSEM
Date:
3

Acknowledgement
I express my sincere thanks to my project guide, Dr. Jyotsana Khandelwal for guiding
me right form the inception till the successful completion of the project. I sincerely
acknowledge him for extending their valuable guidance, support for literature, critical
reviews of project and the report and above all the moral support he had provided to
me with all stages of this project.
I would also like to thank the supporting staff of sales and distribution Department, for
their help and cooperation throughout our project.
(Signature)
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CONTENTS
S.NO. PARTICULARS PAGE NO.
1 INTRODUCTION TO THE TOPIC 6
2 INTRODUCTION TO THE ORGANIZATION. 26
3 RESEARCH METHODOLOGY
Introduction
Title of study
Objective of study
Type of research
Sample Size and methods of selecting
sample
Data Collection
Limitations of Study
86
4 ANALYSIS AND INTERPRETATIONS 91
5 SWOT 106
6 FACTS AND FINDINGS 111
7 CONCLUSION 114
8 RECOMMENDATION AND SUGGESTION 115
9 APPENDIX 116
10 BIBLIOGRAPHY 122
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Introduction: Executive summary of the project
Executive Summary
Indian banking retail sector is witnessing one of the most hectic marketing
activities of all times. There is always a ‘first mover advantage’ in an upcoming sector.
The idea is help to each other "banking business" means the business of receiving
money on current or deposit account, paying and collecting cheque drawn by or paid in
by customers, the making of advances to customers.
The Industrial Development Bank of India Limited commonly known by its
acronym IDBI is one of India's leading public sector banks and 4th largest Bank in
overall ratings.
In this project or research, the main contention is to highlight the customer
awareness towards retail products provided by the IDBI bank. The objective of this
project is to study the changing preference of consumer towards organized retailing
and to analyze customer satisfaction towards products and services offered and to
share and create knowledge around the area of wealth management, develop better
understanding of this area and help each other find better opportunities in the area of
wealth management.
This research will go through formulating the objective of the study, process of
data collection, usage of appropriate sampling plan, processing and analysis of data,
reporting the findings. This study will basically be of Descriptive nature.
Though it will be explorative to some extent, where it will use questionnaire,
schedule and oral interview. Study will be analytical also that includes survey, and fact
finding enquiries. Since no prior assumption was made regarding the consumers
perception even no hypothesis was formulated.
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Banking Industry which is basically my concern industry around which my project
has to be revolved is really a very complex industry. And to work for this was really a
complex and hectic task and few 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 were following-
· Banking sector was quite similar in offering and products and because of that it
was very difficult to discriminate between our product and products of the
competitors.
· Target customers and respondents were too busy persons that to get their time
and view for specific questions was very difficult.
· Sensitivity of the industry was also a very frequent factor which was very
important to measure correctly.
· Area covered for the project while doing job also was very large and it was very
difficult to correlate two different customers/respondents views in a one.
· Every financial customer has his/her own need and according to the
requirements of the customer product customization was not possible.
· So above challenges some time forced me to leave the project but any how I did
my project in all circumstances. Basically in this project I analyzed that-
Customer awareness towards retail banking in IDBI bank.
· Limitations of this research are given time is lesser than required; cost is also a
limitation because while giving the feedback they might not take the survey or
Questionnaires seriously and research is only confined to Jaipur city.
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INDUSTRY PROFILE
The Banking Regulation Act 1949 defines banking as accepting the purpose of lending
or investment, of deposits of money from the public, repayable on demand or
otherwise and wthdrawable by cheque, draft, order otherwise. The essential function of
a bank is to provide services related to the storing of value and the extending credit.
The evolution of banking dates back to the earliest writing, and continues in the
present where a bank is a financial institution that provides banking and other financial
services. Currently the term bank is generally understood an institution that holds a
banking license. Banking licenses are granted by financial supervision authorities and
provide rights to conduct the most fundamental banking services such as accepting
deposits and making loans. There are also financial institutions that provide certain
banking services without meeting the legal definition of a bank, a so called non-bank.
Banks are a subset of the financial services industry. The word “Bank” is derived from
the Italian word ‘banco’ signifying a bench, which was erected in the market place,
where it was customary to exchange money; the first bench having been established in
Italy a.d. 808. The basic functions of banks are to accept deposits, lend money and act
as collecting and paying agents. The Bank of Barcelona in Spain (1401) was perhaps
the first institution that could be called a bank in this sense. The terms bankrupt and
"broke" are similarly derived from banca rotta , which refers to an out of business bank,
having its bench physically broken. Money lenders in Northern Italy originally did
business in open areas, or big open rooms, with each lender working from his own
bench or table. Typically, a bank generates profits from transaction fees on financial
services or the interest spread on resources it holds in trust for clients while paying
them interest on the asset.
HISTORY OF THE INDIAN BANKING SECTOR
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Banking in India has its origin as early as the Vedic period. It is believed that the
transition from money lending to banking must have occurred even before Manu, the
great Hindu Jurist, who has devoted a section of his work to deposits and advances
and laid down rules relating to rates of interest.
During the Mogul period, the indigenous bankers played a very important role in
lending money and financing foreign trade and commerce. During the days of the East
India Company, it was the turn of the agency houses to carry on the banking business.
The General Bank of India was the first Joint Stock Bank to be established in the year
1786. The others which followed were the Bank of Hindustan and the Bengal Bank.
The Bank of Hindustan is reported to have continued till 1906 while the other two failed
in the meantime. In the first half of the 19th century the East India Company
established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and
the Bank of Madras in 1843. These three banks also known as Presidency Banks,
were independent units and functioned well. These three banks were amalgamated in
1920 and a new bank, the Imperial Bank of India was established on 27th January
1921.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The
Comptoire d’Escompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862; branches in Madras and Pondicherry, then a French colony,
followed. Calcutta was the most active trading port in India, mainly due to the trade of
the British Empire, and so became a banking center.The fervour of Swadeshi
movement lead to establishing of many private banks in Dakshina Kannada and Udupi
district which were unified earlier and known by the name South Canara ( South
Kanara ) district. Four nationalised banks started in this district and also a leading
private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle
of Indian Banking".
With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial
Bank of India was taken over by the newly constituted State Bank of India.The
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Reserve Bank which is the Central Bank was created in 1935 by passing Reserve
Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks
with Indian management were established in the country namely, Punjab National
Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda
Ltd, The Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country
were nationalized and in 15th April 1980, six more commercial private sector banks
were also taken over by the government.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks
(that is with the Government of India holding a stake), 29 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges)
and 31 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public
sector banks hold over 75 percent of total assets of the banking industry, with the
private and foreign banks holding 18.2% and 6.5% respectively.
 From World War I to Independence:
The period during the First World War (1914-1918) through the end of the Second
World War (1939-1945), and two years thereafter until the independence of India were
challenging for Indian banking. The years of the First World War were turbulent, and it
took its toll with banks simply collapsing despite the Indian economy gaining indirect
boost due to war-related economic activities. At least 94 banks in India failed between
1913 and 1918.
 Post-independence:
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. India's independence marked the end
of a regime of the Laissez-faire for the Indian banking. The Government of India
initiated measures to play an active role in the economic life of the nation, and the
Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed
economy. This resulted into greater involvement of the state in different segments of
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the economy including banking and finance. The major steps to regulate banking
included:
· In 1948, the Reserve Bank of India, India's central banking authority, was
nationalized, and it became an institution owned by the Government of India.
· In 1949, the Banking Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in
India."
· The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two banks
could have common directors.
However, despite these provisions, control and regulations, banks in India except the
State Bank o India, continued to be owned and operated by private persons. This
changed with the nationalization of major banks in India on 19 July, 1969.
 Nationalization:
By the 1960s, the Indian banking industry has become an important tool to facilitate
the development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to nationalize the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the
Government of India in the annual conference of the All India Congress Meeting in a
paper entitled "Stray thoughts on Bank Nationalization." The paper was received with
positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued
an ordinance and nationalized the 14 largest commercial banks with effect from the
midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described
the step as a "masterstroke of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of
Undertaking) Bill, and it received the presidential approval on 9 August, 1969.
A second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control of credit
delivery. With the second dose of nationalization, the GOI controlled around 91% of
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the banking business of India. Later on, in the year 1993, the government merged New
Bank of India with Punjab National Bank. It was the only merger between nationalized
banks and resulted in the reduction of the number of nationalized banks from 20 to 19.
After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer
to the average growth rate of the Indian economy.
The nationalized banks were credited by some, including Home minister P.
Chidambaram, to have helped the Indian economy withstand the global financial crisis
of 2007-2009.
 Liberalization:
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization, licensing a small number of private banks. These came to be known as
New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalized the banking
sector in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in
the norms for Foreign Direct Investment, where all Foreign Investors in banks may be
given voting rights which could exceed the present cap of 10%,at present it has gone
up to 49% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods of
working for traditional banks. All this led to the retail boom in India. People not just
demanded more from their banks but also received more.
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Currently, banking in India is 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. 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. The stated policy of
the Bank on the Indian Rupee is to manage volatility but without any fixed exchange
rate-and this has mostly been true.
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. One may also
expect M&As, takeovers, and asset sales.
INDIAN BANKING SYSTEM
 Introduction
The Reserve Bank of India (RBI) is India's central bank. It is the sole authority for
issuing bank notes and the supervisory body for banking operations in India. It
supervises and administers exchange control and banking regulations, and
administers the government's monetary policy. It is also responsible for granting
licenses for new bank branches. Though the banking industry is currently dominated
by public sector banks, numerous private and foreign banks exist. India's government-owned
banks dominate the market. Their performance has been mixed, with a few
being consistently profitable. Several public sector banks are being restructured, and in
some the government either already has or will reduce its ownership.
 Private and foreign banks
The RBI has granted operating approval to a few privately owned domestic banks; of
these many commenced banking business. Foreign banks operate more than 150
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branches in India. The entry of foreign banks is based on reciprocity, economic and
political bilateral relations. An inter-departmental committee approves applications for
entry and expansion.
 Capital adequacy norm
Foreign banks were required to achieve an 8 percent capital adequacy norm by March
1993, while Indian banks with overseas branches had until March 1995 to meet that
target. All other banks had to do so by March 1996. The banking sector is to be used
as a model for opening up of India's insurance sector to private domestic and foreign
participants, while keeping the national insurance companies in operation.
The banking system has three tiers. These are the scheduled commercial banks; the
regional rural banks which operate in rural areas not covered by the scheduled banks;
and the cooperative and special purpose rural banks.
 Scheduled and non scheduled banks
There are approximately 80 scheduled commercial banks, Indian and foreign; almost
200 regional rural banks; more than 350 central cooperative banks, 20 land
development banks; and a number of primary agricultural credit societies. In terms of
business, the public sector banks, namely the State Bank of India and the nationalized
banks, dominate the banking sector.
 Local financing
All sources of local financing are available to foreign-participation companies
incorporated in India, regardless of the extent of foreign participation. Under foreign
exchange regulations, foreigners and non-residents, including foreign companies,
require the permission of the Reserve Bank of India to borrow from a person or
company resident in India
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 Regulations on foreign banks
Foreign banks in India are subject to the same regulations as scheduled banks. They
are permitted to accept deposits and provide credit in accordance with the banking
laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in
India. Foreign bank branches in India finance trade through their global networks.
 RBI restrictions
The Reserve Bank of India lays down restrictions on bank lending and other activities
with large companies. These restrictions, popularly known as "consortium guidelines"
seem to have outlived their usefulness, because they hinder the availability of credit to
the non-food sector and at the same time do not foster competition between banks.
 Indian vs. foreign banks
Most Indian banks are well behind foreign banks in the areas of customer funds
transfer and clearing systems. They are hugely over-staffed and are unlikely to be able
to compete with the new private banks that are now entering the market. While these
new banks and foreign banks still face restrictions in their activities, they are well-capitalized,
use modern equipment and attract high-caliber employees.
 Government and RBI regulations
All commercial banks face stiff restrictions on the use of both their assets and liabilities
Forty percent of loans must be directed to "priority sectors" and the high liquidity ratio
and cash reserve requirements severely limit the availability of deposits for lending.
The RBI requires that domestic Indian banks make 40 percent of their loans at
confessional rates to priority sectors' selected by the government. These sectors
consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign
banks have been required to make 32 percent of their loans to these priority sector.
Within the target of 32 percent, two sub- targets for loans to the small scale sector
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(minimum of 10 percent) and exports (minimum of 12 percent) have been fixed.
Foreign banks, however, are not required to open branches in rural areas, or to make
loans to the agricultural sector.
 The urge to merge:
In the recent past there has been a lot of talk about Indian Banks lacking in scale and
size. The State Bank of India is the only bank from India to make it to the list of Top
100 banks, globally. Most of the PSBs are either looking to pick up a smaller bank or
waiting to be picked up by a larger bank. The central government also seems to be
game about the issue and is seen to be encouraging PSBs to merge or acquire other
banks. Global evidence seems to suggest that even though there is great enthusiasm
when companies merge or get acquired, majority of the mergers/acquisitions do not
really work. So in the zeal to merge with or acquire another bank the PSBs should not
let their common sense take a back seat.
DEVELOPMENTS IN BANKING SYSTEM
SOCIAL CONTROL OF BANK
Indian banking structure has grown considerably in strength and stability due to the
vigorous control and effective monitoring by reserve bank of India. However, Order to
remove the deficiency pointed above, the Government introduced a scheme of social
control of banks. According to the Banking Commission (1972), the social control
scheme was introduced with the main objective of “achieving a wider spread of bank
credit flow to priority sectors and making it a more effective instrument of
development .
NATIONALISATION OF BANKS
Despite of scheme of social control there was no significant reorientation of lending
activities of banks towards meeting the requirements of priority sector like agriculture.
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This resulted in nationalization of 14 major commercial banks with individual deposits
exceeding Rs.50 crores in July 1969.
The major objective of nationalization were
· Reduction in concentration of economic power in hands of a few.
· Expansion of credit to priority areas, which were hitherto neglected like
agriculture, small-scale industries and self, employed people.
· Elimination of the use of bank credit for speculative and unproductive purpose.
· To provide a professional bent to bank management and encourage upcoming
entrepreneurs.
At the time of nationalization, the 14 major banks had a paid up capital of Rs. 28.5
crores, deposits of Rs. 2626 crores, advances Rs. 1813 crores and 4134 branches.
In other words the nationalized banks accounted for 80% of branches, 83% of
deposits and 84% of advances of the whole banking system.
The Banks nationalized in 1969 were: -
· Allahabad Bank
· Andhra Bank
· Bank of Baroda
· Bank of India
· Canara Bank
· Central Bank of India
· Dena Bank
· Indian Bank
· Indian Overseas Bank
· Punjab National Bank
· United Commercial Bank
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· Union Bank of India
· Syndicate Bank
· Bank of Maharashtra
REGIONAL RURAL BANKS
The RRBs were established with a view to combining the local feel and familiarity
with rural problems. The RRBs are primarily sponsored by the commercial
banks.The primary objectives of these banks are:
· Providing credit for agricultural purposes to small entrepreneurs engaged in
trade and industry and other productive activities in rural areas.
· To cater the needs weaker sections of the community.
SECOND NATIONALISATION
In order to move effectively, meet the growing development needs of the economy
and to promote welfare of people on the large scale six more commercial banks
with Demand and Time Liabilities (Deposits) with 200 cr were nationalized in April
1980. With the second nationalization, the number of public sector banks
increased to 28 (1st nationalization 14 banks, 2nd nationalization 6 bank and SBI and
its seven associate banks).
Over the years with the directional change that has occurred in the banking system
and the fact that the banks responding favorably by evolving new strategies and
innovative ideas the credit structure of the country has become strong and steady.
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Recognizing the fact that the banks are vital catalytic agents of growth that provide
the basic input of credit, new programmes with the social orientation have been
designed with a view to assist the society.
The names six banks nationalized were as under:
1. Corporation Bank
2. Oriental Bank of Commerce
3. Punjab & Sind Bank
4. Vijaya Bank
5. Andhra Bank
6. New bank of India
After the nationalization of major banks the position altered rapidly and the flow of
credit to the rural areas increased considerably. Along with quantitative expansion
of branch network, there were qualitative improvements in the lending practices of
the banks. The phenomenal change in the lending practices can be termed as a
transformation from class banking to mass banking. In fact the broader national
objectives of eradication of poverty, unemployment and growth with social justice
have shaped the formulation of various directives/ schemes.
CURRENT SCENARIO
The Indian has finally worked up to the competitive dynamics of new Indian market and
is addressing the relevant issues take on the multifarious challenges of globalization.
Banks that employ IT solutions are perceived to be futuristic and proactive players
capable of meeting the multifarious requirement of large customer base. Private Banks
have been fast on the uptake and are reorienting their strategies using the Internet as
a medium.
The Indian banking has come from a long from being a sleepy business institution to a
highly proactive and dynamic entity this transformation has been largely brought by the
large dose of liberalization and economic reforms that allowed exploring new business
opportunities rather than generating revenues from conventional streams.
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The Indian industry has confidently hit the growth trial that pick in activity is best
reflected in the banking sector which after all is as candid a mirror of a country’s
economy as you could ever find. Most of the Indian financial intermediaries have been
keeping pace with the deepening market economy, riding the opportunity that come
along with reforms even as they brace themselves for increased competition both
foreign and private by strengthening prudential norms and leveraging technology to
ensure that growth engine hums smoothly along
The essential function of a bank is to provide services related to the storing of value
and the extending credit. The evolution of banking dates back to the earliest writing,
and continues in the present where a bank is a financial institution that provides
banking and other financial services. Currently the term bank is generally understood
an institution that holds a banking license.
Banking licenses are granted by financial supervision authorities and provide rights to
conduct the most fundamental banking services such as accepting deposits and
making loans. There are also financial institutions that provide certain banking services
without meeting the legal definition of a bank, a so called non-bank. Banks are a
subset of the financial services industry.
The word bank is derived from the italian banca, which is derived from German and
means bench. The terms bankrupt and "broke" are similarly derived from banca rotta,
which refers to an out of business bank, having its bench physically broken. Money
lenders in Northern Italy originally did business in open areas, or big open rooms, with
each lender working from his own bench or table.
Typically, a bank generates profits from transaction fees on financial services or the
interest spread on resources it holds in trust for clients while paying them interest on
the asset.
21

Services typically offered by banks
Although the type of services offered by a bank depends upon the type of bank and the
country, services provided usually include:
· Directly take deposits from the general public and issue checking and saving
accounts.
· Lend out money to companies and individuals (see money lender)
· Cash checks.
· Facilitate money transactions such as wire transfers and cashiers checks
· Issue credit cards, ATM, and debit cards and online banking.
· Storage of valuables, particularly in a safe deposit box.
Types of banks
There are several different types of banks including:
Central banks usually control monetary policy and may be the lender of last resort in
the event of a crisis. They are often charged with controlling the money supply,
including printing paper money. Examples of central banks are the European Central
Bank and the US Federal Reserve Bank.
Investment banks underwrite stock and bond issues and advice on mergers. Examples
of investment banks are Goldman Sachs of the USA or Nomura Securities of Japan.
Merchant banks were traditionally banks which engaged in trade financing. The
modern definition, however, refers to banks which provide capital to firms in the form of
shares rather than loans. Unlike Venture capital firms, they tend not to invest in new
companies. Private banks manage the assets of the very rich. An example of a private
bank is the Union Bank of Switzerland. Savings banks write mortgages exclusively.
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Offshore banks are banks located in jurisdictions with low taxation and regulation, such
as Switzerland or the Channel Islands. Many offshore banks are essentially private
banks. Commercial banks primarily lend to businesses (corporate banking)
Retail banks primarily lend to individuals. An example of a retail bank is Washington
Mutual of the USA. Universal banks engage in several of these activities. For example,
Citigroup, a large American bank, is involved in commercial and retail lending; it owns
a merchant bank (Citicorp Merchant Bank Limited) and an investment bank (Salomon
Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its
subsidiaries in tax-havens offer offshore banking services to customers in other
countries.
Banks are prone to crisis
The traditional bank has an inherent tendency to crisis. This is because the bank
borrows short term and lends leveraged long term. The sum of deposits and the bank's
capital will never equal more than a modest percentage of the loans the bank has
outstanding.
Even if liquidity is not a concern, if there is no run on the bank, banks can simply
choose a bad portfolio of loans, and lose more money than they have. The US Savings
and Loan Crisis in the late 1980s and early 1990s is such an incident.
Role in the money supply
A bank raises funds by attracting deposits, borrowing money in the inter-bank market,
or issuing financial instruments in the money market or a securities market. The bank
then lends out most of these funds to borrowers. However, it would not be prudent for
a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds
in reserve so that it can repay depositors who withdraw their deposits.
Bank reserves are typically kept in the form of a deposit with a central bank. This
behaviour is called fractional-reserve banking and it is a central issue of monetary
policy. Some governments (or their central banks) restrict the proportion of a bank's
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balance sheet that can be lent out, and use this as a tool for controlling the money
supply. Even where the reserve ratio is not controlled by the government, a minimum
figure will still be set by regulatory authorities as part of banking supervision.
Regulation
The combination of the instability of banks as well as their important facilitating role in
the economy led to banking being thoroughly regulated. The amount of capital a bank
is required to hold is a function of the amount and quality of its assets.
Major banks are subject to the Basel Capital Accord promulgated by the Bank for
International Settlements. In addition, banks are usually required to purchase deposit
insurance to make sure smaller investors are not wiped out in the event of a bank
failure. Another reason banks are thoroughly regulated is that ultimately, no
government can allow the banking system to fail.
There is almost always a lender of last resort—in the event of a liquidity crisis (where
short term obligations exceed short term assets) some element of government will step
in to lend banks enough money to avoid bankruptcy.
How banks are viewed ?
Banks have a long history of being characterized as heartless, rapacious creditors,
hounding honest folk down on their luck for the last dime. See Populism. In United
States history, the National Bank was a major political issue during the presidency of
Andrew Jackson. Jackson fought against the bank as a symbol of greed and profit-mongering,
antithetical to the democratic ideals of the United States.
Profitability
Large banks in the United States are some of the most profitable corporations,
especially relative to the small market shares they have. This amount is even higher if
one counts the credit divisions of companies like Ford, which are responsible for a
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large proportion of those company's profits. For example, the largest bank, Citigroup,
which for the past 3 years has made more profit then any other company in the world,
has only a 5 percent market share.
Now if Citigroup were to be as dominant in its industry as a Home Depot, Starbucks,
or Wal Mart in their respective industries, with a 30 percent market share, it would
make more money than the top ten non-banking US industries combined. In the past
10 years in the United States, banks have taken many measures to ensure that they
remain profitable while responding to ever-changing market conditions.
First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge
with investment and insurance houses. Merging banking, investment, and insurance
functions allows traditional banks to respond to increasing consumer demands for "one
stop shopping" by enabling the crossing selling of products (which, the banks hope, will
also increase profitability).
Second, they have moved toward risk based pricing on loans, which mean charging
higher interest rates for those people who they deem more risky to default on loans.
This dramatically helps to offset the losses from bad loans, lowers the price of loans to
those who have better credit histories, and extends credit products to high risk
customers who would have been denied credit under the previous system.
Third, they have sought to increase the methods of payment processing available to
the general public and business clients. These products include debit cards, pre-paid
cards, smart-cards, and credit cards. These products make it easier for consumers to
conveniently make transactions and smooth their consumption over time (in some
countries with under-developed financial systems, it is still common to deal strictly in
cash, including carrying suitcases filled with cash to purchase a home).
However, with convenience there is also increased risk that consumers will mis-manage
their financial resources and accumulate excessive debt. Banks make money
from card products through interest payments and fees charged to consumers and
companies that accept the cards. The banks' main obstacles to increasing profits are
25

exisiting regularory burdens, new government regulation, and increasing competition
from non-traditional financial institutions.
26

IDBI bank: all about-
The economic development of any country depends on the extent to which its financial
system efficiently and effectively mobilizes and allocates resources. There are a
number of banks and financial institutions that perform this function; one of them is the
development bank. Development banks are unique financial institutions that perform
the special task of fostering the development of a nation, generally not undertaken by
other banks. Development banks are financial agencies that provide medium-and long-term
financial assistance and act as catalytic agents in promoting balanced
27

development of the country. They are engaged in promotion and development of
industry, agriculture, and other key sectors. They also provide development services
that can aid in the accelerated growth of an economy.
The objectives of development banks are:
· To serve as an agent of development in various sectors, viz. industry,
agriculture, and international trade
· To accelerate the growth of the economy
· To allocate resources to high priority areas
· To foster rapid industrialization, particularly in the private sector, so as to
provide employment opportunities as well as higher production
· To develop entrepreneurial skills
· To promote the development of rural areas
28

· To finance housing, small scale industries, infrastructure, and social utilities.
Function-
The IDBI has been established to perform the following functions-
(1) To grant loans and advances to IFCI, SFCs or any other financial institution by way
of refinancing of loans granted by such institutions which are repayable within 25 year?
(2) To grant loans and advances to scheduled banks or state co-operative banks by
way of refinancing of loans granted by such institutions which are repayable in 15
years?
(3) To grant loans and advances to IFCI, SFCs, other institutions, scheduled banks,
state co-operative banks by way of refinancing of loans granted by such institution to
industrial concerns for exports.
(4) To discount or rediscount bills of industrial concerns.
(5) To underwrite or to subscribe to shares or debentures of industrial concerns.
(6) To subscribe to or purchase stock, shares, bonds and debentures of other financial
institutions.
(7) To grant line of credit or loans and advances to other financial institutions such as
IFCI, SFCs, etc.
(8) To grant loans to any industrial concern.
(9) To guarantee deferred payment due from any industrial concern.
(10) To guarantee loans raised by industrial concerns in the market or from
institutions.
29

(11) To provide consultancy and merchant banking services in or outside India.
(12) To provide technical, legal, marketing and administrative assistance to any
industrial concern or person for promotion, management or expansion of any industry.
(13) Planning, promoting and developing industries to fill up gaps in the industrial
structure in India.
(14) To act as trustee for the holders of debentures or other securities.
In addition, they are assigned a special role in:
· Planning, promoting, and developing industries to fill the gaps in industrial
sector.
· Coordinating the working of institutions engaged in financing, promoting or
developing industries, agriculture, or trade, rendering promotional services such
as discovering project ideas, undertaking feasibility studies, and providing
technical, financial, and managerial assistance for the implementation of
projects
Subsidiaries-
The following are the subsidiaries of IDBI.
(1) Small Industries Development Bank of India (SIDBI)
(2) IDBI Bank Ltd.
(3) IDBI Capital Market Services Ltd.
(4) IDBI Investment Management Company
30

Industrial development bank of India
The industrial development bank of India(IDBI) was established in 1964 by parliament
as wholly owned subsidiary of reserve bank of India. In 1976, the bank’s ownership
was transferred to the government of India. It was accorded the status of principal
financial institution for coordinating the working of institutions at national and state
levels engaged in financing, promoting, and developing industries. IDBI has provided
assistance to development related projects and contributed to building up substantial
capacities in all major industries in India. IDBI has directly or indirectly assisted all
companies that are presently reckoned as major corporate in the country. It has played
a dominant role in balanced industrial development.
IDBI set up the small industries development bank of India (SIDBI) as wholly owned
subsidiary to cater to specific the needs of the small-scale sector. IDBI has engineered
the development of capital market through helping in setting up of the securities
exchange board of India(SEBI), National stock exchange of India limited(NSE), credit
analysis and research limited(CARE), stock holding corporation of India
limited(SHCIL), investor services of India limited(ISIL), national securities depository
limited(NSDL), and clearing corporation of India limited(CCIL)
In 1992, IDBI accessed the domestic retail debt market for the first time by issuing
innovative bonds known as the deep discount bonds. These new bonds became highly
popular with the Indian investor.
In 1994, IDBI Act was amended to permit public ownership up to 49 per cent. In July
1995, it raised over Rs 20 billion in its first initial public (IPO) of equity, thereby
reducing the government stake to 72.14 per cent. In June 2000, a part of government
shareholding was converted to preference capital. This capital was redeemed in March
31

2001, which led to a reduction in government stake. The government stake currently is
51 per cent.
In august 2000, IDBI became the first all India financial institution to obtain ISO 9002:
1994 certification for its treasury operations. It also became the first organization in the
Indian financial sector to obtain ISO 9001:2000 certifications for its forex services.
Milestones
· July 1964: Set up under an Act of Parliament as a wholly-owned subsidiary of
Reserve Bank of India.
· February 1976: Ownership transferred to Government of India. Designated
Principal Financial Institution for co-coordinating the working of institutions at
national and State levels engaged in financing, promoting and developing
industry.
· March 1982: International Finance Division of IDBI transferred to Export-Import
Bank of India, established as a wholly-owned corporation of Government of
India, under an Act of Parliament.
· April 1990: Set up Small Industries Development Bank of India (SIDBI) under
SIDBI Act as a wholly-owned subsidiary to cater to specific needs of small-scale
sector. In terms of an amendment to SIDBI Act in September 2000, IDBI
divested 51% of its shareholding in SIDBI in favour of banks and other
institutions in the first phase. IDBI has subsequently divested 79.13% of its
stake in its erstwhile subsidiary to date.
· January 1992: Accessed domestic retail debt market for the first time with
innovative Deep Discount Bonds; registered path-breaking success.
· December 1993: Set up IDBI Capital Market Services Ltd. as a wholly-owned
subsidiary to offer a broad range of financial services, including Bond Trading,
Equity Broking, Client Asset Management and Depository Services. IDBI Capital
is currently a leading Primary Dealer in the country.
32

· September 1994: Set up IDBI Bank Ltd. in association with SIDBI as a private
sector commercial bank subsidiary, a sequel to RBI's policy of opening up
domestic banking sector to private participation as part of overall financial sector
reforms.
· October 1994: IDBI Act amended to permit public ownership upto 49%.
· July 1995: Made Initial Public Offer of Equity and raised over Rs.2000 crore,
thereby reducing Government stake to 72.14%.
· March 2000:Entered into a JV agreement with Principal Financial Group, USA
for participation in equity and management of IDBI Investment Management
Company Ltd., erstwhile a 100% subsidiary. IDBI divested its entire
shareholding in its asset management venture in March 2003 as part of overall
corporate strategy.
· March 2000: Set up IDBI Intech Ltd. as a wholly-owned subsidiary to undertake
IT-related activities.
· June 2000: A part of Government shareholding converted to preference capital,
since redeemed in March 2001; Government stake currently 58.47%.
· August 2000: Became the first All-India Financial Institution to obtain ISO
9002:1994 Certification for its treasury operations. Also became the first
organization in Indian financial sector to obtain ISO 9001:2000 Certification for
its forex services.
· March 2001: Set up IDBI Trusteeship Services Ltd. to provide technology-driven
information and professional services to subscribers and issuers of
debentures.
· February 2002: Associated with select banks/institutions in setting up Asset
Reconstruction Company (India) Limited (ARCIL), which will be involved with
the
33

· Strategic management of non-performing and stressed assets of Financial
Institutions and Banks.
· September 2003: IDBI acquired the entire shareholding of Tata Finance
Limited in Tata Home finance Ltd, signaling IDBI's foray into the retail finance
sector. The housing finance subsidiary has since been renamed 'IDBI Home
finance Limited'.
· December 2003: On December 16, 2003, the Parliament approved The
Industrial Development Bank (Transfer of Undertaking and Repeal Bill) 2002 to
repeal IDBI Act 1964. The President's assent for the same was obtained on
December 30, 2003. The Repeal Act is aimed at bringing IDBI under the
Companies Act for investing it with the requisite operational flexibility to
undertake commercial banking business under the Banking Regulation Act
1949 in addition to the business carried on and transacted by it under the IDBI
Act, 1964.
· July 2004: The Industrial Development Bank (Transfer of Undertaking and
Repeal) Act 2003 came into force from July 2, 2004.
· July 2004: The Boards of IDBI and IDBI Bank Ltd. take in-principle decision
regarding merger of IDBI Bank Ltd. with proposed Industrial Development Bank
of India Ltd. in their respective meetings on July 29, 2004.
· September 2004: The new entity "Industrial Development Bank of India" was
incorporated on September 27, 2004 and Certificate of commencement of
business was issued by the Registrar of Companies on September 28, 2004.
· September 2004:Notification issued by Ministry of Finance specifying SASF as
a financial institution under Section 2(h)(ii) of Recovery of Debts due to Banks &
Financial Institutions Act, 1993.
· September 2004:Notification issued by Ministry of Finance on September 29,
2004 for issue of non-interest bearing GoI IDBI Special Security, 2024,
aggregating Rs.9000 crore, of 20-year tenure.
34

· September 2004: Notification for appointed day as October 1, 2004, issued by
Ministry of Finance on September 29, 2004.
· September 2004:RBI issues notification for inclusion of Industrial Development
Bank of India Ltd. in Schedule II of RBI Act, 1934 on September 30, 2004.
· October 2004: Appointed day - October 01, 2004 - Transfer of undertaking of
IDBI to IDBI Ltd. IDBI Ltd. commences operations as a banking company. IDBI
Act, 1964 stands repealed
· January 2005: The Board of Directors of IDBI Ltd., at its meeting held on
January 20, 2005, approved the Scheme of Amalgamation, envisaging merging
of IDBI Bank Ltd. with IDBI Ltd. Pursuant to the scheme approved by the
Boards of both the banks, IDBI Ltd. will issue 100 equity shares for 142 equity
shares held by shareholders in IDBI Bank Ltd. EGM has been convened on
February 23, 2005 for seeking shareholder approval for the scheme.
 BOARD MEMBERS
 Shri Yogesh Agarwal, CMD
 Shri O.V. Bundellu, DMD
 Shri Jitender Balakrishnan, DMD
35

 Shri Arun Ramanathan, Finance Secretary
 Shri Ajay Shankar, Secretary (IPP)
 Shri K. Narasimha Murthy
 Shri H.L. Zutshi
 Shri Analjit Singh
 Smt. Lila Firoz Poonawalla
 Shri A. Sakthivel
 Shri Subhash Tuli
36

Profile Of IDBI Bank-
Industrial Development Bank came into existence with the Enactment of Parliamentary
Act in July 1964 as a subsidiary of Reserve Bank of India. The ownership vesting with
the Government of India. It was Designated Principal Institution for coordinating the
working of institutions at national and state level engaged in financing, promoting and
developing Industry. With the Government opening up of Domestic Banking sector to
private participation as part of overall financial sector reforms, in September 94,
Industrial Development bank in association with its subsidiary SIDBI, set up IDBI Bank
Ltd as a private sector commercial bank.
This initiative has blossomed into a major success story. IDBI bank, which began with
an equity capital of Rs 1000 million, commenced its first branch at Indore in November
1995. Thereafter in less than seven years the bank has attained a front ranking
position in the Indian Banking Industry. IDBI Bank successfully completed its public
issue in February 99, which led to its paid up capital expanding to Rs 1400 million.
On December 16, 2003 the parliament approved the Industrial Development bank
(Transfer of Undertaking and Repeal Bill) 2002 to repeal IDBI Act 1964. The Repeal
Act is aimed at Bringing IDBI under the companies Act for investing it with the requisite
operational flexibility to undertake commercial banking business under the Banking
Regulation Act 1949 in addition to the business carried on and Transacted by it under
the IDBI Act 1964. The New act came into force in July 2004.
The Board of Both IDBI and IDBI Bank decided to merger both the entities and to form
Industrial Development Bank of India. (IDBI Ltd.)The Merged entity became one the
Largest Financial Institution. With the Strength of the Parent company the Bank plans
to expand its network and grow on a large scale.
37

· Number of Branches: 453
· Number of Extension Counters:6
· Number of ATM s: 536
· Presence in 256 centres.
Industrial Development Bank of India Limited, now more popularly known as IDBI
Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The
foundation of the bank was laid down under an Act of Parliament, in July 1964. The
main aim behind the setting up of IDBI was to provide credit and other facilities for the
Indian industry, which was still in the initial stages of growth and development.
In February 1976, the ownership of IDBI was transferred to Government of India.
After the transfer of its ownership, IDBI became the main institution, through which the
institutes engaged in financing, promoting and developing industry were to be
coordinated. In January 1992, IDBI accessed domestic retail debt market for the first
time, with innovative Deep Discount Bonds, and registered path-breaking success. The
following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned
subsidiary, to offer a broad range of financial services, including Bond Trading, Equity
Broking, Client Asset Management and Depository Services.
In September 1994, in response to RBI's policy of opening up domestic banking sector
to private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July
1995, public issue of the bank was taken out, after which the Government's
shareholding came down (though it still retains majority of the shareholding in the
bank).
In September 2003, IDBI took over Tata Home Finance Ltd, renamed ‘IDBI Home
finance Limited’, thus diversifying its business domain and entering the arena of retail
finance sector.
The year 2005 witnessed the merger of IDBI Bank with the Industrial Development
38

Bank of India Ltd. The new entity continued to its development finance role, while
providing an array of wholesale and retail banking products (and does so till date).
The following year, IDBI Bank acquired United Western Bank (which, at that time, had
230 branches spread over 47 districts, in 9 states). In the financial year of 2008, IDBI
Bank had a net income of Rs 9415.9 crores and total assets of Rs 120,601 crores.
The Present
Today, IDBI Bank is counted amongst the leading public sector banks of India, apart
from claiming the distinction of being the 4th largest bank, in overall ratings. It is
presently regarded as the tenth largest development bank in the world, mainly in terms
of reach. This is because of its wide network of 509 branches, 900 ATMs and 319
centers. Apart from being involved in banking services, IDBI has set up institutions like
The National Stock Exchange of India (NSE), The National Securities Depository
Services Ltd. (NSDL) and the Stock Holding Corporation of India (SHCIL).
RETAIL BANKING
Service with a smile: Today’s finicky banking customers will settle for nothing less. The
customer has come to realize somewhat belatedly that he is the king. The customer’s
choice of one entity over another as his principal bank is determined by considerations
of service quality rather than any other factor. He wants competitive loan rates but at
the same time also wants his loan or credit card application processed in double quick
time. He insists that he be promptly informed of changes in deposit rates and service
charges and he bristles with ‘customary rage’ if his bank is slow to redress any
grievance he may have. He cherishes the convenience of impersonal net banking but
during his occasional visits to the branch he also wants the comfort of personalized
human interactions and facilities that make his banking experience pleasurable. In
short he wants financial house that will more than just clear his cheque and updates
his passbook: he wants a bank that cares and provides great services. So, do banks
39

meet these heightened expectations? Is there a gap that exists between the
management perception and the customer perception with reference to the services
offered in Retail Banking?
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable
technology, improved service and banking convenience. Higher penetration of
technology and increase in global literacy levels has set up the expectations of the
customer higher than never before. Increasing use of modern technology has further
enhanced reach and accessibility.
The market today gives us a challenge to provide multiple and innovative
contemporary services to the customer through a consolidated window as so to ensure
that the bank’s customer gets “Uniformity and Consistency” of service delivery across
time and at every touch point across all channels. The pace of innovation is
accelerating and security threat has become prime of all electronic transactions. High
cost structure rendering mass-market servicing is prohibitively expensive.
Present day tech-savvy bankers are now more looking at reduction in their operating
costs by adopting scalable and secure technology thereby reducing the response time
to their customers so as to improve their client base and economies of scale
.
The solution lies to market demands and challenges lies in innovation of new offering
with minimum dependence on branches – a multi-channel bank and to eliminate the
disadvantage of an inadequate branch network. Generation of leads to cross sell and
creating additional revenues with utmost customer satisfaction has become focal point
worldwide for the success of a Bank.
40

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial
banks with individual customers, both on liabilities and assets sides of the balance
sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans
(e.g., personal, housing, auto, and educational) on the assets side, are the more
important of the products offered by banks. Related ancillary services include credit
cards, or depository services.
The issue of retail banking is extremely important and topical. Across the globe, retail
lending has been a spectacular innovation in the commercial banking sector in recent
years. The growth of retail lending, especially, in emerging economies, is attributable
to the rapid advances in information technology, the evolving macroeconomic
environment, financial market reform, and several micro-level demand and supply side
factors.
India too experienced a surge in retail banking. There are various pointers towards
this. Retail loan is estimated to have accounted for nearly one-fifth of all bank credit.
Housing sector is experiencing a boom in its credit. The retail loan market has
decisively got transformed from a sellers’ market to a buyers’ market. All these
emphasize the momentum that retail banking is experiencing in the Indian economy in
recent years.
Retail banking refers to provision of banking services to individuals and small
business where the financial institutions are dealing with large number of low value
transactions. The concept is not new to banks but is now viewed as an important and
attractive market segment that offers opportunities for growth and profits. Today’s retail
banking sector is characterized by three basic characteristics:
 Multiple products (deposits, credit cards, insurance, investments and securities)
 Multiple channels of distribution (call center, branch, and internet)
 Multiple customer groups (consumer, small business, and corporate).
41

OBJECTIVES
 To study on the Customer Satisfaction level on retail banking
 To know the technical advancement benefits for customers.
 To understand the operations and modalities of Retail banking
 To study on the Impact of the Banking Crisis and the Flight to Quality
 To study and analyze the concept of Customer Relationship
Management of banks in general.
 To predict the future position of Retail banking in India
Concept of Retail Banking
The retail banking encompasses deposit and assets linked products as well as other
financial services offered to individual for personal consumption. Generally, the pure
retail banking is conceived to be the provision of mass banking products and services
to private individuals as opposed to wholesale banking which focuses on corporate
clients.
Over the years, the concept of retail banking has been expanded to include in many
cases the services provided to small and medium sized businesses. Some banks in
Europe even include their private banking business i.e. services to high net worth net
worth individuals in their retail banking portfolio.
The concept of Retail banking is not new to banks. It is only from past few years that it
is being viewed as an attractive market segment, which offers opportunities for growth
with profits. The diversified portfolio characteristic of retail banking gives better comfort
42

and spreads the essence of retail banking in individual customers. Though the term
retail banking and retail lending are often used synonymously, yet the later is lust one
side of retail banking. In retail banking, all the banking needs of individual customers
are taken care of in an integrated manner.
Review of Literature
Anil Dutta and Kirti Dutta in their paper reveal the expectations and perceptions of the
consumers across the three banking sectors in India. The study revealed that gap
varies across the banking sector with public sector banks showing the widest gap and
foreign banks showing a narrow gap. It is important for the service providers to know
the level of customer expectations so that they can meet and even exceed them to
gain maximum customer satisfaction .In the study of Mark Durkin et al., customer
satisfaction questionnaire was issued to over 2,000 retail customers. Twenty-five
senior branch bank managers were then asked to rank the same set of issues to
ascertain what they felt to be the key influencers to customer registration for internet
banking.
The three factors that the managers failed to identify, fell into two broad categories:
relationship management status and comfort with new technology .
Financial institutions are actively developing new electronic banking products for their
retail customers. To date, the market leaders have drawn a disproportionably higher
share of e-retail banking customers. In response, smaller institutions have become
quite active in exploring ways to participate profitably in online banking. A major
influence is from a customer relationship management (CRM) perspective, where
institutions try to limit the outflow of current customers and direct high-value customers
to potential products from a multi-product service offering array.
These efforts can succeed only if retail bank marketers focus the promotion of the new
products and services that can utilise this channel toward those customers who are
most likely to find them attractive (Don Sciglimpagli). The first aim of this study was to
43

examine the role that online and electronic banking play in defining the customer's
primary financial relationship. The analysis of 701 retail customers of a financial
institution presented in this study suggests that banks and other institutions are highly
vulnerable to loss of customers to rivals with extensive online services. A second aim
was to examine to what extent information on banking relationships is able to extend
CRM analysis beyond that offered by typical demographic and income data.
Current customer account relationships are found to be highly predictive of use of
electronic services use in general. And, interest in the use of specific online services is
related to differing customer relationships in addition to ordinary demographic and
balance information. These findings can be useful for retail banking in identifying
potential high-value users from a customer relationship management perspective .
The purpose of the paper by Aurto Molina is to investigate the impact of relational
benefits on customer satisfaction in retail banking. This paper presents a causal model
that identifies a connection between the relational benefits achieved through a stable
and long-term relationship with a given bank and customer satisfaction with retail
banking.
Based on a theoretical framework regarding the relationship between relational
benefits and customer satisfaction, an empirical study using a sample of 204 bank
customers was conducted, and the theoretical model is tested.
Multi-item indicators from prior studies were employed to measure the constructs of
interest, and the proposed relationships were tested using structural equations
modeling methods. The results show that confidence benefits have a direct, positive
effect on the satisfaction of customers with their bank. However, special treatment
benefits and social benefits did not have any significant effects on satisfaction in a
retail banking environment. The findings suggest that banks can create customer
satisfaction through relational strategies that focus on building customer confidence.
Therefore, frontline employees should be committed to establishing and maintaining
confidence benefits for customers. Thus the study provides useful information on the
44

relationship between customer satisfaction and specific relational benefits in retail
banking.
The important change drivers in most European retail banking systems are found to be
competition and IT developments. Two broad strategic themes are explored. The first
is the evolution of retail banking in a strategic marketing context from a supply focus
towards a much greater demand orientation. The second theme explored is the
intensifying strategic imperative towards a shareholder value culture.
The key features and strategic challenges of the `new' retail banking revolution are
finally summarized in the study of Gardener Edwar and Howcroft Barry .Due to
increasing competition in retail banking, understanding the customer perception about
service quality is becoming indispensable. The private sector banks are posing a very
stiff competition to the public sector banks through their initiatives for meeting
customer expectations and gaining a cutting edge. This is reflected by the increasing
market share and better profitability of private banks in comparison to that of public
sector banks.
At the same time, public sector banks have also responded to the challenges posed
by the private sector banks through conscious efforts to enhance their service quality.
This study (R.A.Ravi) compares public sector banks and private sector banks in terms
of user perception of their retail banking services.
In his article in Business Line T. B. Kapali, explains the perceived stability of the
income stream from the retail business is probably the most important driver of the
push into retail. Cross-country studies clearly point - increasing urbanization, rising
income levels; all indicating that the demand for retail finance will continue to be very
strong well into the future. ICICI or HDFC over the past few years does show the
stability which has been imparted to the overall revenue stream by the retail business.
With the growth of the Indian economy over the past few years, the retail banking
sector in India has also witnessed phenomenal growth. It has faced up to the need of
45

the hour and introduced anytime, anywhere banking, for its customers through ATMs,
mobile and internet banking. It has also offered services like D-MAT, plastic money
(credit and debit cards), online transfers, etc. The concept of CBS (Core Banking
Solution), which allows a customer to fulfill a wide range of banking operation online,
has come alive during the past few years. This has not only helped in reducing
operational costs but facilitated greater conveniences to its customers and so the
customer preferences have to be taken care of constantly in the retail banking
business.
In the age of consumerism, the customer is king. And the banking sector is latching on
to this mantra of sales and marketing. Although the sector is part of the service
industry, only recently have individual banks woken up to the fact that offering products
and services tailored to meet the customers' specific needs can actually bring in more
business. Banks today do much more than lend and borrow money.
The new-age private sector banks can be said to be the forerunners in offering such
customer-oriented service. Banks are even taking loans to the customers. Banks have
also become a one-stop shop for selling products such as mutual funds, insurance and
RBI bonds and offer service such as payment of utility bills and equity trading. Cross-selling
also helps banks personalise products for their customers.
For instance, banks give loans against insurance, or link deposit schemes to
insurance, depending on customer needs. The banks are converting to the age of
commoditised business i.e., Give the consumer a product and a reason to use it.
The rapid and provocative changes facing the retail sector seems to vary somewhat
from country to country, retail banks everywhere are working vigorously to address
new technological, regulatory and competitive realities. Collectively, they are trying to
determine strategies and tactics needed to secure their franchises and their futures.
The bank of the future will not win by creating a single strategy. Rather, each of its
activities within products, customer channels, and support services will be the subject
of a discreet "business unit" strategy, which will be benchmarked against market-
46

segmented customer demand and profitability, and competitors' businesses in this
area.
The above studies show that retail banking business will continue to be very strong,
well into the future. The increasing competition is compelling the service providers to
know the level of customer expectations and meet them. The studies also suggest that
the bank of the future will not win by creating a single strategy but focus on building
customer confidence and extensive online services.
The present study looks into understanding the customers’ perception towards the
retail banking and also their awareness regarding the various retail banking services.
What is Retail Banking?
Retail banking is, however, quite broad in nature - it refers to the dealing of commercial
banks with individual customers, both on liabilities and assets sides of the balance
sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans
(e.g., personal, housing, auto, and educational) on the assets side, are the more
important of the products offered by banks. Related ancillary services include credit
cards, or depository services.
Today’s retail banking sector is characterized by three basic characteristics:
· Multiple products (deposits, credit cards, insurance, investments and securities);
· Multiple channels of distribution ( branch, internet); and
· Multiple customer groups (consumer, small business, and corporate).
Retail Banking in India:
47

Retail banking in India is not a new phenomenon. It has always been prevalent in India
in various forms. For the last few years it has become synonymous with mainstream
banking for many banks.
The typical products offered in the Indian retail banking segment are housing loans,
consumption loans for purchase of durables, auto loans, credit cards and educational
loans. The loans are marketed under attractive brand names to differentiate the
products offered by different banks. As the Report on Trend and Progress of India,
2003-04 has shown that the loan values of these retail lending typically range between
Rs.20,000 to Rs.100 lakh.
The loans are generally for duration of five to seven years with housing loans granted
for a longer duration of 15 years. Credit card is another rapidly growing sub-segment of
this product group.In recent past retail lending has turned out to be a key profit driver
for banks with retail portfolio constituting 21.5 per cent of total outstanding advances
as on March 2004. The overall impairment of the retail loan portfolio worked out much
less then the Gross NPA ratio for the entire loan portfolio. Within the retail segment,
the housing loans had the least gross asset impairment. In fact, retailing make ample
business sense in the banking sector.
Drivers of retail banking business in India
Some of the basic reasons which led to the retail banking growth are as follows:
 First, economic prosperity and the consequent increase in purchasing power
has given a fillip to a consumer boom. During the 10 years after 1992, India's
48

economy grewat an average rate of 6.8 percent and continues to grow at almost
the same rate – not many countries in the world match this performance.
 Second, changing consumer demographics indicate vast potential for growth in
consumption both qualitatively and quantitatively. India is one of the countries
having highest proportion (70%) of the population below 35 years of age (young
population). The BRIC report of the Goldman-Sachs, which predicted a bright
future for Brazil, Russia, India and China, mentioned Indian demographic
advantage as an important positive factor for India.
 Third, technological factors played a major role. Convenience banking in the
form of debit cards, internet and phone-banking, anywhere and anytime banking
has attracted many new customers into the banking field. Technological
innovations relating to increasing use of credit / debit cards, ATMs, direct debits
and phone banking has contributed to the growth of retail banking in India.
 Fourth, the treasury income of the banks, which had strengthened the bottom
lines of banks for the past few years, has been on the decline during the last
few years. In such a scenario, retail business provides a good vehicle of profit
maximization. Considering the fact that retail’s share in impaired assets is far
lower than the overall bank loans and advances, retail loans have put
comparatively less provisioning burden on banks apart from diversifying their
income streams.
 Fifth, decline in interest rates have also contributed to the growth of retail credit
by generating the demand for such credit.
Opportunities and Challenges of Retail Banking in India
Retail banking has immense opportunities in a growing economy like India. As the
growth story gets unfolded in India, retail banking is going to emerge a major driver.
How does the world view us? As already referred to the BRIC Report, talking India as
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an economic superpower; A. T. Kearney, a global management consulting firm,
recently identified India as the "second most attractive retail destination" of 30
emergent markets.
The rise of the Indian middle class is an important contributory factor in this regard.
The percentage of middle to high income Indian households is expected to continue
rising. The younger population not only wields increasing purchasing power, but as far
as acquiring personal debt is concerned, they are perhaps more comfortable than
previous generations. Improving consumer purchasing power, coupled with more
liberal attitudes toward personal debt, is contributing to India's retail banking segment.
Global investors are attracted to India because of the growing number of well-educated,
English-speaking workers who are comfortable working in information
technology. India's IT work force will be augmented by a booming population of
engineering students. Furthermore, India's labor pool also serves as an expanding
customer base for retail bank products and services.
The development of India's economy is boosting overall consumer purchasing power.
The percentage of middle to high income Indian households is expected to continue
rising. The younger, more educated population not only wields increasing purchasing
power, but it is more comfortable than previous generations with acquiring personal
debt
The combination of the above factors promises substantial growth in the retail sector,
which at present is in the nascent stage. Due to bundling of services and delivery
channels, the areas of potential conflicts of interest tend to increase in universal banks
and financial conglomerates.
The challenges for the industry and its stakeholders are as follows:
 First, retention of customers is going to be a major challenge. According to a
research by Reichheld and Sasser in the Harvard Business Review, 5 per cent
increase in customer retention can increase profitability by 35 per cent in
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banking business, 50 per cent in insurance and brokerage, and 125 per cent in
the consumer credit card market. Thus, banks need to emphasise on retaining
customers and increasing market share.
 Second, rising indebtedness could turn out to be a cause for concern in the
future. India's position, of course, is not comparable to that of the developed
world where household debt as a proportion of disposable income is much
higher. Such a scenario creates high uncertainty. Expressing concerns about
the high growth witnessed in the consumer credit segments, the Reserve Bank
has, as a temporary measure, put in place risk containment measures and
increased the risk weight from 100 per cent to 125 per cent in the case of
consumer credit including personal loans and credit cards (Mid-term Review of
Annual Policy, 2004-05).
 Third, information technology poses both opportunities and challenges. Even
with ATM machines and Internet Banking, many consumers still prefer the
personal touch of their neighbourhood branch bank. Technology has made it
possible to deliver services throughout the branch bank network, providing
instant updates to checking accounts and rapid movement of money for stock
transfers. However, this dependency on the network has brought IT
departments additional responsibilities and challenges in managing, maintaining
and optimizing the performance of retail banking networks. Illustratively,
ensuring that all bank products and services are available, at all times, and
across the entire organization is essential for today’s retails banks to generate
revenues and remain competitive. Besides, there are network management
challenges, whereby keeping these complex distributed networks and
applications operating properly in support of business objectives becomes
essential. Specific challenges include ensuring that account transaction
applications run efficiently between the branch offices and data centres.
 Fourth, KYC Issues and money laundering risks in retail banking is yet another
important issue. Retail lending is often regarded as a low risk area for money
laundering because of the perception of the sums involved. However,
competition for clients may also lead to KYC procedures being waived in the bid
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for new business. Banks must also consider seriously the type of identification
documents they will accept and other processes to be completed. The Reserve
Bank has issued detailed guidelines on application of KYC norms in November
2004.
Reasons for the change over from Corporate Banking to Retail Banking:
 The financial sector reforms undertaken by the Government since the
year 1991 have accelerated the process of disintermediation which has
encouraged blue chip corporate to access cheaper funds to meet their
working capital requirements directly from investors in India and abroad
through capital market instruments and external Commercial Borrowings
route thus by-passing Banks in the process. The deregulation of markets
and interest rates has lead to cut throat competition among Banks for
corporate loans making them to lend even at PLR or sub PLR and offer
other valued services at comparatively cheaper rates to big and high
value corporate. In the process, most of the banks have experienced
substantial reduction in interest spreads and drain on their profitability.
 The introduction of stringent Asset Classification, Income Recognition
and provisioning norms has resulted in growing menace of NPAs in
corporate loans which has affected the asset quality, profitability and
capital adequacy of banks adversely. The risks involved in corporate
loans are very high as corporate have to keep all their eggs in one
basket. The risks involved in retail Banking advances are comparatively
less and well diversified as loan amounts are relatively small ranging
from Rs. 5000 to Rs. 100 lakh and repayable normally in short period of
3- years except housing loans (where repayment period is long up to 15
years in some cases) and from fixed source of income like salaries.
 Whereas corporate loans give average return of just 0.5 to 1.5 percent
only, the retail advances offer attractive interest spread of 3to 4 percent,
because retail borrowers are less interest rate sensitive than the
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Corporate. Another reason for large interest spreads on retail advances
is that the retail customers are too fragmented to bargain effectively.
 While corporate loans are subject to ups and downs in trade frequently,
retail loans are comparatively independent of recession and continue to
deliver even during the sluggish phase of economy.
 Retail Banking gives a lot of stability and public image to banks as
compared to corporate banking.
 The housing loans, which form the major chunk of retail lending and
where NPAs are the least, carry risk weight of just 50% for capital
adequacy purposes. This is likely to come down further as new Basel
Capital Accord or (Basel II) norms are put in place from the year 2006.
This offers added incentive to banks for lending to this retail segment as
against corporate lending where capital consumption is higher.
 The greater amount of consumerism in the country with upswing in
income levels of burgeoning middle class, which has propensity to
consume to raise their standard of living, is enlarging the retail markets.
This market is growing 2 50 percent per year and boosting the demand
for credit from households. The potential is huge as present penetration
level is just over 2 percent in the country. Given the easy liquidity
scenario in the country the growth rate in this sector is likely to go up
manifold in the years come. This offers great potential for banks to
enlarge their loan books.
 The Indian mindset is also changing and consumers prefer to improve
their quality of life even if it means borrowing for facilities like housing,
consumer goods vehicles and vacationing etc. Borrowing and lending is
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no longer considered a taboo. The peer pressure and demonstration
effect is further pushing up demand for housing loans, consumer
products and automobiles. The profiles of customers are fast changing
from conservative dodos to fashionable peacocks. All these
developments give big push to Retail Banking activities.
 Retail Banking clients are generally loyal and tend not to change from
one Bank to another very often.
 Large numbers of Retail clients facilitate marketing, mass selling and
ability to categorize/select clients using scoring system and data mining.
Banks can cut costs and achieve economies of scale and improve their
bottom-line by robust growth in retail business volume.
 Through product innovations and competitive pricing strategies Banks
can foster business relationship with customers to retain the existing
clients and attract new ones.
 Innovative products like asset securitization can open new vistas in
sustaining optimal capital adequacy and asset liability management for
banks.
 Retail Banking offers opportunities to banks to cross-sell other retail
products like credit card, insurance, mutual fund products and demat
facilities etc. to depositors and investors.
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Impact of Retail Banking:
The major impact of retail Banking is that, the customers have become the Emperors –
the fulcrum of all Banking activities, both on the asset side and the liabilities front. The
hitherto sellers market has transformed into buyers market the customers have
multiple of choices before them now for cherry picking products and services, which
suit their lifestyles and tastes and financial requirements as well. Banks now go to their
customers more often than the customers go to their banks.
 Retail Banking is transforming banks into one stop financial super
markets.
 The share of retail loans is fast increasing in the loan books of banks.
 Banks can foster lasting business relationship with customers and retain
the existing customers and attract new ones. There is a rise in their
service as well.
 Banks can cut costs and achieve economies of scale and improve their
revenues and profits by robust growth in retail business. Reduction in
costs offers a win win situation both for banks and the customers.
 It has affected the interface of banking system through different delivery
mechanism
 It is not that banks are sharing the same pie of retail business, the pie
itself is growing exponentially. Retail Banking has fuelled a considerable
quantum of purchasing power through a slew of retail products.
 Banks can diversify risks in their credit portfolio and contain the menace
of NPAs. Retail banking allows bank to cross sell other products and
services as it is far more easier to sell other products to the same
customer rather than search for absolutely new ones. Cross selling is
one of the best avenues for relationship
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 Banking and retention of customers. Banks can thus increase their
business volume and improve their bottom-line substantially.
 Re-engineering of business with sophisticated technology based
products will lead to business creation, reduction in transaction costs and
enhancement in efficiency of operations.
Problems faced in Retail Banking :
 Retail Banking has all it’s attendant risks. It is highly sensitive .Banks got
to move cautiously. It is easy to enter, but difficult to get out. A systematic
and a calculated approach is the pre-requisite for success in the long run.
 Retail Banking is being introduced with the concept of serving customer
with better and innovative products with the latest technology and easy
availability. It becomes so popular and widely acceptable that more and
more customers had started to use it. Now it becomes a mass product.
Customer database have tremendously increased and it becomes
difficult to manage them.
 To match the customer inflows and current customer requirements as
well as service standards, banks have to set up more branches,
distribution channels and new trained staff as well as improvement in
back office operations also in very near future. This itself a time bounded
problem and banks have to do it as early as possible.
 Today’s competitive market customer has more than one options for his
retail banking needs. Every bank is providing more or less similar kind of
products. So an unsatisfied customer can easily switch over to another
competitor’s bank. So banks need to be very careful in handling the
customers. They have to continually improve their service standards.
 Retail Banking is so wide accepted by the customer as well as very
aggressively promoted by the bankers that if the bankers do not take
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adequate care in distributing and recovering advances, there are
chances of increasing in NPAs in coming feature. And that would be an
alarming situation.
BENEFITS OF RETAIL BANKING
Traditional lending to the corporate are slow moving along with high NPA risk,
treasure profits are now loosing importance hence Retail Banking is now an alternative
available for the banks for increasing their earnings. Retail Banking is an attractive
market segment having a large number of varied classes of customers. Retail Banking
focuses on individual and small units. Customize and wide ranging products are
available. The risk is spread and the recovery is good. Surplus deployable funds can
be put into use by the banks. Products can be designed, developed and marketed as
per individual needs.
SCOPE FOR RETAIL BANKING IN INDIA
• All round increase in economic activity
• Increase in the purchasing power. The rural areas have the large purchasing
power at their disposal and this is an opportunity to market Retail Banking.
• India has 200 million households and 400 million middleclass population more than
90% of the savings come from the house hold sector. Falling interest rates have
resulted in a shift. “Now People Want To Save Less And Spend More.”
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• Nuclear family concept is gaining much importance which may lead to large
savings, large number of banking services to be provided are day-by-day
increasing.
• Tax benefits are available for example in case of housing loans the borrower can
avail tax benefits for the loan repayment and the interest charged for the loan.
CHALLENGES TO RETAIL BANKING IN INDIA
 The issue of money laundering is very important in retail banking. This compels all the
banks to consider seriously all the documents which they accept while approving the
loans.
 The issue of outsourcing has become very important in recent past because various
core activities such as hardware and software maintenance, entire ATM set up and
operation (including cash, refilling) etc., are being outsourced by Indian banks.
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 Banks are expected to take utmost care to retain the ongoing trust of the public.
 Customer service should be at the end all in retail banking. Someone has rightly said,
“It takes months to find a good customer but only seconds to lose one.” Thus, strategy
of Knowing Your Customer (KYC) is important. So the banks are required to adopt
innovative strategies to meet customer’s needs and requirements in terms of
services/products etc.
 The dependency on technology has brought IT departments’ additional responsibilities
and challenges in managing, maintaining and optimizing the performance of retail
banking networks. It is equally important that banks should maintain security to the
advance level to keep the faith of the customer.
 The efficiency of operations would provide the competitive edge for the success in
retail banking in coming years.
 The customer retention is of paramount important for the profitability if retail banking
business, so banks need to retain their customer in order to increase the market share.
 One of the crucial impediments for the growth of this sector is the acute shortage of
manpower talent of this specific nature, a modern banking professional, for a modern
banking sector.
 If all these challenges are faced by the banks with utmost care and deliberation, the
retail banking is expected to play a very important role in coming years, as in case of
other nations.
EMERGING ISSUES IN HANDLING RETAIL BANKING
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 KNOWING CUSTOMER
· ‘Know your Customer’ is a concept which is easier said than practiced. Banks face
several hurdles in achieving this. In order to that the product lines are targeted at the
right customers-present and prospective-it is imperative that an integrated view of
customers is available to the banks. The benefits flowing out of cross-selling and up-selling
will remain a far cry in the absence of this vital input. In this regard the
customer databases available with most of the public sector banks, if not all, remain far
from being enviable.
 What needs to be done is setting up of a robust data warehouse where from
meaningful data on customers, their preferences, there spending patterns, etc. can be
mined. Cleansing of existing data is the first step in this direction. PSBs have a long
way to go in this regard.
 TECHNOLOGY ISSUES
· Retail banking calls for huge investments in technology. Whether it is setting up of a
Customer Relationship Management System or Establishing Loan Process Automation
or providing anytime, anywhere convenience to the vast number of customers or
establishing channel/product/customer profitability, technology plays a pivotal role.
And it is a long haul. The Issues involved include adoption of the right technology at
the right time and at the same time ensuring volumes and margins to sustain the
investments.
 It is pertinent to remember that Citibank, known for its deployment of technology, took
nearly a decade to make profits in credit cards. It has also to be added in the same
breath that without adequate technology support, it would be well nigh possible to
administer the growing retail portfolio without allowing its health to deteriorate. Further,
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the key to reduction in transaction costs simultaneously with increase in ability to
handle huge volumes of business lies only in technology adoption.
 PSBs are on their way to catch up with the technology much required for the success
of retail banking efforts. Lack of connectivity, stand alone models, concept of branch
customer as against bank customer, lack of convergence amongst available channels,
absence of customer profiling, lack of proper decision support systems, etc., are a few
deficiencies that are being overcome in a great way. However, the initiatives in this
regard should include creating flexible computing architecture amenable to changes
and having scalability, a futuristic approach, networking across channels, development
of a strong Customer Information Systems (CIS) and adopting Customer Relationship
Management (CRM) models for getting a 360 degree view of the customer.
 ORGANIZATIONAL ALIGNMENT
· It is of utmost importance that the culture and practices of an institution support its
stated goals. Having decided to take a plunge into retail banking, banks need to have a
well defined business strategy based on the competitive of the bank and its potential.
Creation of a proper organization structure and business operating models which
would facilitate easy work flow are the needs of the hour. The need for building the
organizational capacity needed to achieve the desired results cannot be overstated.
 This would mean a strong commitment at all levels, intensive training of the rank and
file, putting in place a proper incentive scheme, etc. As a part of organizational
alignment, there is also the need for setting up of an effective Corporate Marketing
Division. Most of the public sector banks have only publicity departments and not
marketing setup.
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 A fully fledged marketing department or division would help in evolving a brand
strategy, address the issue of alienation from the upwardly mobile, high net worth
customer group and improve the recall value of the institution and its products by
arresting the trend of getting receded from public memory. The much needed tie-ups
with manufacturers/distributors/builders will also facilitated smoothly.
 It is time to break the myth PSBs are not customer friendly. The attention is to be
diverted to vast databases of customers lying with the PSBs till unexploited for
marketing.
 PRODUCT INNOVATION
· Product innovation continues to be yet another major challenge. Even though
bank after bank is coming out with new products, not all are successful. What is
of crucial importance is the need to understand the difference between novelty
and innovation? Peter Drucker in his path breaking book: “Management
Challenges for the 21st Century” has in fact sounded a word of caution:
“innovation that is not in tune with the strategic realities will not work; confusing
novelty with innovation (should be avoided), test of innovation is that it creates
value; novelty creates only amusement”.
· The days of selling the products available in the shelves are gone. Banks need
to innovate products suiting the needs and requirements of different types of
customers. Revisiting the features of the existing products to continue to keep
them on demand should not also be lost sight of.
 PRICING OF PRODUCT
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· The next challenge is to have appropriate policies in place. The industry today is
witnessing a price war, with each bank wanting to have a larger slice of the cake that is
the market, without much of a scientific study into the cost of funds involved, margins,
etc. The strategy of each player in the market seems to be: ‘under cutting others and
wooing the clients of others’.
· Most of the banks that use rating models for determining the health of the retail
portfolio do not use them for pricing the products. The much needed transparency in
pricing is also missing, with many hidden charges. There is a tendency, at least on the
part of few to camouflage the price. The situation cannot remain his way for long. This
will be one issue that will be gaining importance in the near future.
 PROCESS CHANGES
· Business Process Re-engineering is yet another key requirement for banks to handle
the growing retail portfolio. Simplified processes and aligning them around delivery of
customer service impinging on reducing customer touch-points are of essence.
· A realization has to drawn that automating the inefficiencies will not help anyone and
continuing the old processes with new technology would only make the organization an
old expensive one.
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· Work flow and document management will be integral part of process changes. The
documentation issues have to remain simple both in terms of documents to be
submitted by the customer at the time of loan application and those to be executed
upon sanction.
 ISSUE CONCERNING HUMAN RESOURCES
· While technology and product innovation are vital , the soft issues concerning the
human capital of the banks are more vital.
· The corporate initiatives need to focus on bringing around a frontline revolution.
Though the changes envisaged are seen at the frontline, the initiatives have to really
come from the ‘back end’.
· The top management of banks must be seen as practicing what preaches. The
initiatives should aim at improved delivery time and methods of approach. There is an
imperative need to create a perception that the banks are market-oriented.
 This would mean a lot of proactive steps on the part of bank management which would
include empowering staff at various levels, devising appropriate tools for performance
measurement bringing about a transformation – ‘can’t do ‘to’ can do’ mind-set change
from restrictive practices to total flexible work place, say.
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 By having universal tellers, bringing in managerial controlling work place, provision of
intensive training on products and processes, emphasizing, coaching etiquette, good
manners and best behavioral models, formulating objective appraisals, bringing in
transparency, putting in place good and acceptable reward and punishment system,
facilitating the placement of young /youthful staff in front-line defining a new role for
front-line staff by projecting them as sellers of products rather than clerks at work and
changing the image of the banks from a transaction provider to a solution provider.
 RURAL ORIENTATION
· As of now, action that is taking place on the retail front is by and large confined two
metros and cities. There is still a vast market available in rural India, which remains to
be trapped. Multinational Corporations, as manufacturers and distributors, have
already taken the lead in showing the way by coming out with exquisite products,
packaging and promotions, keeping the rural customer in mind.
· Washing powders and shampoos in Re.1 sachet made available through an efficient
network and testimony to the determination of the MNCs to penetrate the rural market.
In this scenario, banks cannot lack behind.
· In particular PSBs, which have a strong rural presence, need to address the needs of
rural customers in a big way. These and only these will propel retail growth that is
envisaged as a key strategy for portfolio expansion by most of the banks.
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LITERATURE REVIEW
 Background:
Our perception is an approximation of reality. Our brain attempts to make sense
out of the stimuli to which we are exposed. This works well when we are about to
perceive familiar facts. However, our perception is sometimes “off” when we are not
clear about concepts. Perception is a process by which an individual select, organize &
Interpret stimuli in a meaningful picture of the world Also, we can describe as “how we
see the world around us” Perception is the process of selecting, organizing, &
Interpreting or attaching meaning to events happening in environment.
The Concept of Perception
Perception is one of the objects studied by the science of consumer behaviour.
Analyzing the works of scientists studying consumer behaviour, it is possible to
make a conclusion that perception is presented as one of personal factors,
determining consumer behaviour. Personal factors mean the closest
environment of a human, including everything what is inside the person, his
head and soul, characterizing him as a personality.
Using his sensory receptors and being influenced by external factors, the person
receives information, accepts and adapts it, forms his personal attitude, opinion, and
motive, which can be defined as factors that will influence his further activity and
behavior. Perception within this context is considered as one of the principal personal
factors, conditioning the nature and direction of remaining variables.
Customer perception is an important component of our relationship with our
customers. Customer satisfaction is a mental state which results from the customer’s
comparison of expectations prior to a purchase with performance perceptions after a
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purchase. A customer may make such comparisons for each part of an offer called
‘‘domain-specific satisfaction’’ or for the offer in total called ‘‘global satisfaction’’.
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Retail Banking Products Portfolio
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A. Deposits :
There are many products in retail banking like Fixed Deposit, Savings Account,
Current Account, Recurring Account, NRI Account, Corporate Salary Account, Free
Demat Account, Kid’s Account, Senior Citizen Scheme, Cheque Facilities, Overdraft
Facilities, Free Demand Draft Facilities, Locker Facilities, Cash Credit Facilities, etc.
They are listed and explained as follows:
1 . Fixed Deposit:
The deposit with the bank for a period, which is specified at the time of making the
deposit is known as fixed deposit. Such deposits are also known as FD or term deposit
.A FD is repayable on the expiry of a specified period. The rate of interest and other
terms and conditions on which the banks accepted FD were regulated by the RBI, in
section 21 and 35A of the Banking Regulation Act 1949.Each bank has prescribed
their own rate of interest and has also permitted higher rates on deposits above a
specified amount. RBI has also permitted the banks to formulate FD schemes specially
meant for senior citizen with higher interest than normal.
2 . Savings Account:
Saving bank account is meant for the people who wish to save a part of their current
income to meet their future needs and they can also earn in interest on their savings.
The rate of interest payable on by the banks on deposits maintained in savings
account is prescribed by RBI.
Now-a-days the fixed deposit is also linked with saving account. Whenever there is
excess of balance in saving account it will automatically transfer into Fixed deposit and
if there is shortfall of funds in savings account , by issuing cheque the money is
transferred from fixed deposit to saving account. Different banks give different name to
this product.
3. Current Account:
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A current account is an active and running account, which may be operated upon any
number of times during a working day. There is no restriction on the number and the
amount of withdrawals from a current account. Current account, suit the requirements
of a big businessmen, joint stock companies, institutions, public authorities and public
corporation etc.
4. Recurring Deposit:
A variant of the saving bank a/c is the recurring deposit or cumulative deposit a/c
introduced by banks in recent years. Here, a depositor is required to deposit an
amount chosen by him. The rate of interest on the recurring deposit account is higher
than as compared to the interest on the saving account. Banks open such accounts for
periods ranging from 1 to 10 years.. The recurring deposit account can be opened by
any number of persons, more than one person jointly or severally, by a guardian in the
name of a minor and even by a minor.
5. NRI Account: NRI accounts are maintained by banks in rupees as well as in
foreign currency. Four types of Rupee account can be open in the names of NRI:
a. Non Resident Rupee Ordinary Account (NRO)
b. Non Resident External Account (NRE)
c. Non Resident ( Non Repatriable Deposit Scheme ) ( NRNR)
d. Non Resident ( special)Rupee Account Scheme ( NRSR)
Apart from this, foreign currency account is the account in foreign currency. The
account can be open normally in US Dollar, Pound Sterling, Euro. The accounts of
NRIs are Indian millenium deposit, Resident foreign currency, housing finance scheme
for NRI investment schemes.
6. Corporate Salary Account:
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Corporate Salary account is a new product by certain private sector banks, foreign
banks and recently by some public sector banks also. Under this account salary is
deposited in the account of the employees by debiting the account of employer. The
only thing required is the account number of the employees and the amount to be paid
them as salary. In certain cases the minimum balance required is zero. All other
facilities available in savings a/c is also available in corporate salary account.
7. Demat Account:
Dematerialization is a process by which physical share certificates / securities are
taken back by the company or registrar and destroyed ultimately. An equivalent
number of shares are credited electronically to customers depository account. Just like
saving/current account with a bank one can open a securities account with the
depository through a depository participant
8 . Kid’s Account ( Minor Account ) :
Children are invited as customer by certain banks. Under this, Account is opened in
the name of kids by parents or guardians. The features of kid’s account are free
personalized cheque book which can be used as a gift cheque , internet banking ,
investment services etc.
9 . Senior Citizenship Scheme:
Senior citizens can open an account and on that account they can get interest rate
somewhat more than the normal rate of interest. This is due to some social
responsibilities of banks towards aged persons whose earnings are mainly on the
interest rate.
B. Loans and Advances:The main business of the banking company is lending of
funds to the constituents, mainly traders, business and industrial enterprises. The
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major portion of a bank’s funds is employed by way of loans and advances, which is
the most profitable employment of its funds.
1. Personal Loans : This is one of the major loans provided by the banks to the
individuals. There the borrower can use for his/her personal purpose. This may be
related to his/her business purpose. The amount of loan is depended on the income of
the borrower and his/her capacity to repay the loan.
2. Housing Loans: NHB is the wholly own subsidiary of the RBI which control and
regulate whole industry as per the guidance and information. The purpose of loan is
mainly for purchase, extension, renovation, and land development.
3. Education Loans : Loans are given for education in country as well as abroad.
4. Vehicle Loans: Loans are given for purchase of scooter, auto-rickshaw, car,
bikes etc. Low interest rates, increasing income levels of people are the factors for
growth in this sector. Even for second hand car finance is available.
5. Professional Loans: Loans are given to doctor, C.A, Architect, Engineer or
Management Consultant. Here the loan repayment is normally done in the form of
equated monthly.
6. Consumer Durable Loans: Under this, loans are given for acquisition of T.V,
Cell phones, A.C, Washing Machines, Fridge and other items.
7. Loans against Shares and Securities: Finance against shares are given by banks
for different uses. Now-a-days finance against shares are given mostly in demat
shares. A margin of 50% is normally accepted by the bank on market value. For these
loans the documents required are normally DP notes, letter of continuing security,
pledge form, power of attorney. This loan can be used for business or personal
purpose.
Retail Banking Services
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1. CREDIT CARDS:
A credit card is an instrument, which provides immediate credit facilities to its holder to
avail a variety of goods and services at the merchant outlets. It is made of plastic and
hence popularly called as Plastic Money. Such cards are issued by bank to persons
with minimum income ranging between RS 50000 and RS 100000 per annum and are
accepted by a variety of business establishments which are notified by the card issuing
bank. Some banks insist on the cardholder being their customers while others do not.
Few banks do not charge any fee for issuing credit cards while others impose an initial
enrollment fee and annual fee also. If the amount is not paid within the time duration
the bank charges a flat interest of 2.5%. Leading Indian Banks such as : SBI, BOB,
Canara Bank, ICICI, HDFC and a few foreign banks like CITIBANK, Standard
Chartered etc are the important issuers of credit card in India.
2. DEBIT CARDS:
It is a new product introduced in India by Citibank a few years ago in association with
MasterCard. A debit card facilitates purchases or payments by the cardholder .It debits
money from the account of the cardholder during a transaction. This implies that the
cardholder can spend only if his account permits.
3. NET BANKING :
This facilitates the customers to do all their banking operations from their home by
using the internet facility. With Net Banking one can carry out all banking and shopping
transactions safely and with total confidentiality. With Net Banking one can easily
perform various functions:
a. Check Account Balance
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b. Download Account Statement
c. Request for a stop payment of a cheque.
d. Request for a new cheque book.
e. Access demat account
f. Transfer funds.
g. Facilitate bill Payments.
h. Pay Credit Card dues instantly.
4. MOBILE BANKING:
Using mobile banking facility one can –
a. Check Balance
b. Check last three transactions.
c. Request for a statement
d. Request for a cheque book.
e. Enquire on a cheque status.
f. Instruct stock cheque payment.
g. View FD details.
h. Transfer funds.
i. Pay Utility Bills.
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5. PHONE BANKING: It helps to conduct a wide range of banking transactions
from the comfort of one’s home or office. Using phone banking facility one can:
a. Check Balance
b. Check last three transactions.
c. Request for a cheque book.
d. Transfer funds.
e. Enquire on a cheque status, and much more.
7 .ANYWHERE BANKING:
One can deposit or withdraw cash from any branch of a particular bank all over the
country up to a prescribed limit. One can also transfer funds.
8. AUTOMATED TELLER MACHINES (ATM):
ATMs features user-friendly graphic screens with easy to follow instructions. The
ATMs interact with customers in their local language for increased convenience.ICICI
Bank’s ATM network is one of the largest and most widespread ATM network in India.
Following are the features available on ATMs which can be accessed from anywhere
at anytime:
a. Cash Withdrawal
b. Cash Deposit
c. Balance Enquiry
d. Cheque Book Request
e. Transaction at various merchant establishments.
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9. SMART CARD:
The smart card, a latest additional to the world of banking and information technology
has emerged as the largest volume driven end-product in the world due to its data
portability, security and convenience. Smart Card is similar in size to today’s plastic
payment card, it has a memory chip embedded in it. The chip stores electronic data
and programmes that are protected by advanced security features. When coupled with
a reader, the smart card has the processing power to serve many different
applications. As an access-control device, smart cards make personal and business
data available only to appropriate users.To ensure the confidentiality of all banking
service, smart cards have mechanisms offering a high degree of security. These
mechanisms are based on private and public key cryptography combined with a digital
certificate, one of the most advanced security techniques currently available. Infact, it
is possible to connect to the web banking service without a smart card.
Services of Industrial Development Bank of India
In order to increase its customer base, the Industrial Development Bank of India offers
a number of customized and innovative banking services. The services are meant to
offer cent percent satisfaction to the customers. Some of the well known services
offered by the bank are:
Wholesale Banking services:
The wholesale banking services form a major part of the banking services of the bank.
The services that are offered under the wholesale division are:
· Transactional services
· Finance of working capital
· Agro based business transactions
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· Trade services
Retail Banking Services:
The Industrial Development Bank of India is also a leader in the retail banking
services. The Net Interest Income amounted to around Rs 2166 Crores while the Net
Profit amounted to around Rs 187 Crores. The main objective of the retail services is
to provide high quality financial products to the target market to give that one-stop-solution
to the banking needs. The retail products offered by the bank include:
· Housing loans
· Personal loans
· Securities loans
· Mortgage loans
· Educational loans
· Merchant establishment overdrafts
· Holiday travel plans
· Commercial property loans
Treasury facilities and services:
The net interest income of this sector amounts to around Rs 1283 Crores while the net
profit amounts to around Rs 44.8 Crores. One can get an array of financial products
such as cash management services, deposit, treasury products, trade finance services
and so on. The three segments in this sector are:
· Local Currency Money Market
· Debt Securities and equities
· Foreign Exchange and Derivatives
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Other services of Industrial Development Bank of India
In addition to these, IDBI also offers some allied services and financial solutions to
cater to the target audience. To cater to the capital market, the bank has floated the
IDBI Capital Market Services Limited, also known as IDBI Capital. The various
services offered in this section are:
· Corporate Advisory Services
· Financial product distribution
· Pension fund management
· Corporate and retail services
· Debt management services
The IDBI Home Finance Limited is also a subsidiary of the Industrial Development
Bank of India. It is used for the purpose of providing long term loans and other financial
benefits to various companies of the industrial sector.
In addition to these, there is also the IDBI Intech Limited which is a trusted name in the
field of system support and implementation, applications, server hosting, system
integration and other related services. Another subsidiary of the Industrial
Development Bank of India is the IDBI Gilts Limited. The main services of this segment
is trading of bonds, offering insurance, auction underwriting and so on.
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Products & Services offered by IDBI bank
Retail banking
 Deposits
 Loans
 Payments - Tax Payments, Stamp Duty Payments, Easy Fill, Bill Payment, Card
to Card Money Transfer, Pay Mate, Online Payments
 Mutual Fund
 Demat Account
 IPO
 Insurance - Family Care, Weathsurance
 Cards - Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-
ATM Card, World Currency Card
 Institutional Banking
 Lockers
 India Post
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 NRI Services
 Phone Banking
 SMS Banking
 Account Alerts
 Internet Banking
Corporate Banking
 Project Finance
 Infrastructure Finance
 Syndication, Underwriting & Advisory Services
 Carbon Credits Business
 Working Capital
 Cash Management Services
 Trade Finance
 Tax Payments
 Derivatives
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 Technology Up gradation Fund Scheme (TUFS)
 Film Financing Scheme
 Direct Discounting Bills
 Rehabilitation Finance
Others
 SME Finance
 Agri-business Products
Details of retail Products & Services Offered by IDBI Bank.
IDBI Bank offers the entire basket of banking products to its customers with various
add on benefits. The products that it offers are,
Savings Account. A customary product that every bank offers to all its
customers .A savings account can be opened with an average quarterly balance of Rs
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5000 (Rs 2500 in select cities) IDBI Bank also offers its customer s the saving account
with a range of facilities which include;
1. Door step account opening
2. Instant account number and ATM card
3. Personalized cheque book
4. Quarterly statement by post
5. Monthly statement by email
6. Any period statement by fax
7. 24*7 cash access at atms
8. Internet banking
9. SMS banking
10.Phone banking
11.Sweep in facility linked to fixed deposits
12.Demat balance info
13.Demat statements with portfolio values
14.Investment advisory services
15.Any Branch Banking
16.Deposit / withdrawal cash at any branch
17.Transfer funds electronically across branches
18.Deposit local cheques at any branch.
 Current Account.
Opening a current account with a bank now comes with unlimited options. PaisaWaisa
now brings you in-depth comparison of a large number of bank current accounts.
Current accounts are the best option for all your business needs. Most current
accounts are now available with a debit card and online banking facilities. Like a
Savings Account, you can set up direct debits with your Current Account also.
Opening a current bank account is usually a straightforward process. Get diverse
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options for opening a current account at the bank of your choice, as we bring to you in-depth
comparison details, such as minimum balance required, other T&C, documents
required and other minute details to help you choose the best option suited to your
needs. Current accounts are by far the best options for all your business needs.
An account to take care of the business sector. IDBI with its range of Roaming Current
Accounts offers five types of account options to the business sector in the form of
Basic, Special, Bronze, Silver and Gold. Based on the kind of balance that the
customer is willing to maintain he can choose the account, which can best suit his
needs. The facilities that one gets on his current account would be,
1. Free at par cheque book
2. Free demand drafts/pay orders on idbi lactations
3. Free demand drafts on non- idbi bank locations
4. Free electronic fund transfer
5. Free any branch deposit and withdrawal
6. Free outstation cheque collection
Along with other facilities like
Internet banking
· ATM Banking
· Mobile Banking
· Monthly statements
· Daily cash and cheque pick up
· Sweep in facility
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 Fixed Deposits.
IDBI presence in this segment is by way of its Suvidha Fixed Deposits. And now with it
s becoming a PSU bank is accompanied with safety, credibility and attractive interest
rates. These deposits are backed with added features like,
· Anytime access to money
· Deposits across tenures of 15 days to 9 years
· Various payout options such as,
· Monthly / Quarterly Income Plan
· For those who want a periodic return on their investment this is the best option
that they will receive a monthly or a quarterly payout of interest.
· Quarterly Compounding Fixed Deposits
· Ideal for those who want a higher rate of return along with a lower risk factor.
 Recurring Deposits.
. The customer can choose any amount that he would like to deposit on a monthly
basis anything between Rs 500 to 1 lakh.Earn a fixed deposit rate on your savings
account. In this option the client has to give an instruction that once his balance
reaches a certain amount than automatically a certain amount would be converted into
a Fixed Deposit. Whenever the client needs he can withdraw the money at his
convience.
The FD s are made in multiples of Rs 1000 and whenever the client withdraws the last
made FD is broken first so that he does not loose interest.
 Overdraft against Fixed Deposits.
In this facility the client can meet his urgent financial needs without breaking his
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fixed deposits. He can take overdraft of up to 90% of the FD value.
Preferred Banking.
A Channel which special caters to the select few who fall in the HNI category. Here
exclusivity, convience and privilege is a norm. Special benefits and benefits are offered
to the clients in the form of,
· Dedicated Relationship Manager
· Investment Advisory Services
· Special Lounge in the Bank etc.
NRI Services
· Along with the NRI account available to non-residents they also enjoy a host of other
facilities.
· The Bank offers the client to access his funds by way of International Debit card.
· Fund Transfer Facility
· Foreign exchange
· Wealth Management services
· Insurance.
The various types of Accounts that an NRI can opt out for are
Non Resident External (NRE) Account
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The features of this account are Rupee account Both principal and interest, fully
repatriable Can be held as savings account, current account and Term deposit, Totally
Tax Free.
Non-Resident Ordinary (NRO) Account-
The features of this account are, Rupee Account Interest earned fully repatriable,
Principal non-repatriable Can be held as a savings account, current account, and term
deposit Ideal account for local rupee funds Interest taxable at applicable rates Ideal
account to credit income like rent, dividend etc.
Foreign Currency Non Resident (FCNR- B) Scheme.
The features of this account are, Available in four currencies USD, GBP, EURO, JPY
Available as Fixed Deposits ,Interest earned in Foreign currency, Maintained in
Foreign currency, No exchange risk, Totally tax free, Both principal and interest, fully
repatriable.
Alternate Sources of Revenue for the Bank.-
Broadly speaking the revenue sources of the bank can be divided into two the one,
which it renders directly, and the other through the distribution of Third party Product of
other companies. Revenue that is generated through the ale of third Party Products
would be through.
Mutual Funds-
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal.
The money thus collected is then invested in capital market instruments such as
shares, debentures equity, debt instruments, money market instruments etc., or a mix
of these securities, depending on the scheme objectives. The income earned through
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these investments and the capital appreciation realized are shared by its unit holders
in proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.In today
s economic scenario wherein the interest rate of saving going down the customers are
looking at other sources of investment through which they can get a good rate of return
with a nominal risk. Instead of losing the customer to someone else the banks itself are
offering this products at their branches. And Mutual fund is one instrument, which is
catching the fancy of the investors.
Mutual funds are considered as the investment avenue. People always look for a
higher return. The banks are no longer giving the returns they once used to give and
there is hardly any chance of the interest rates going up. So if one wants higher returns
one has to invest in shares. But one does not have the expertise to invest.
If one wants to minimize the risk one has to diversify the portfolio. But for
diversification one needs huge amount of money that one may not have. At this point
one can turn to Mutual funds for they provide expertise to invest in the stock market
and also debt instruments. The fund manager decides where to invest and why. The
investor can select a scheme according to his investment needs and risk appetite.
Most of the funds give an indicative rate before investing and the returns eventually get
close to the return indicated. IDBI bank helps one to plan their investments and build a
healthy mutual fund portfolio, which would be an optimal solution for all needs.
Cultivating an investment culture will not only help the customer but also their family.
And IDBI Bank gives highest priority to all customer needs.
Risk Factors:
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All the investments in the securities market are subject to market risks and the NAV of
schemes/ plans may go up or down depending upon the factors and forces affecting
securities market. Past performance is not necessarily indicative of the future.
Performance of IDBI Margao Branch in Mutual Funds Sale.
IDBI margao was one of the first banks, which caught the pulse of its customers in the
town for Investment in Mutual Funds and today is a strong force to reckon with when it
comes to investment in Mutual Funds. In the normal course of business the bank is
able to generate a collection of around 5-10 lakhs and during the time of NFO s from
various fund houses it is able to generate additional 10-15 lakhs on an average.
The Bank generates maximum revenue from the sale of Mutual Funds in the Bank
and has got some dedicated customers who invest only through IDBI Bank. For this
the bank has got its staff trained so as to understand the needs of the customers and
offer them the products accordingly.
Sale of RBI Bonds
IDBI bank offers RBI bonds (GOI bonds). These bonds are fully taxable. The bonds
were issued in cumulative and non-cumulative form, at the option of the investor. The
Bond bears interest at the rate of 8% per annum. Interest on noncumulative bonds will
be payable at half-yearly intervals. Interest on cumulative bonds will be compounded
with half-yearly rests and will be payable on maturity along with the principal.
These investments are for long term period and therefore have no liquidity.
Subscription to the Bonds can be in the form of Cash/Drafts/Cheques. The money is
locked for 6 years but one is guaranteed of the safety and returns. The Bonds shall be
repayable on the expiry of 6 (Six) years from the date of issue. No interest would
accrue after the maturity of the Bond. There will be no maximum limit for investment in
the Bonds
Revenue From Sale of RBI Bonds.
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IDBI is one of the main distributors for RBI Bonds in India. The earn a revenue of 2%
on the amount collected. As it is one of the main distributors it has sub agents who
distributors for the sale of Bonds in such scenario they have part with a part of the
revenue to them. But since the time the returns on the bonds have become taxable
they have lost the sight of the investors, who now look at other sources for investment
where they can get a tax-free return. As such the contribution of RBI bonds in the
revenue basket has come down.
 Commonly sold Life Insurance individual life plans in IDBI Bank. Birla Sun
Life Insurance is one the leading players in the life insurance business in India.
It was the pioneer in launching the Unit Linked insurance products in the Market
and today is one of the market leaders in this segment. Some of the products
that are sold by IDBI Bank are,
 Term Plan .
A plan, which provides the customer with a pure risk cover at a nominal cost. It is like
general insurance only in case of death during the tenure of the policy does the
nominee get the Sum Assured or else if the policy holder survives during the entire
term he does not get anything.
 Classic Life Premier.
A product, which serves the investment savvy client who likes to have insurance as
well, a decent amount of return on the premiums paid by him. This product gives the
client the flexibility to choose the premium he would like to pay, the number of years he
would like to pay, the sum assured he would like to have on this policy. This product
gives the client to choose where he would like the insurance company to invest his
money.
He has an option to choose from funds, which have a varying equity exposure ranging
from 0% to 90%, this would determine the return that he is going to get on his
investments.
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This is an endowment plan wherein the clients gets the money on maturity and incase
of death during the policy period he gets the Sum Assured and the value of his
investments. This also is an investment linked plan.
Flexi Cash Flow.
A money back plan which caters to the client needs in case he would like to get some
money on regular intervals. Again also an investment linked plan. Revenue From Sale
of Life Insurance and Margao Branch performance Today all the banks are entering
with tie up s with Life Insurance companies to sell their products at their branches.
Insurance is now a major source of revenue to the Bank and they are giving special
focus on this area. They have their staff trained to sell the products as per the needs of
the customers and also the Life Insurance companies place their representative at the
branches to assist the bank in selling.
The Bank earns a revenue of somewhere around 10 % 40 % of the premium collected
by them. This would depend on the type of product sold and the duration of the policy.
Life Insurance sale had just started at the margao branch, as initially the Insurance
Company had no operations in Goa.
The Branch has picked up in the sales right from day one. It does on an average a
business of 2-4 lakhs of premium collection on a month-to-month basis. Taking an
average of 25% revenue a premium collection of 4 lakhs would earn an income of
around 1 lakh every month for Margao Branch.
General Insurance
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IDBI has got a strategic tie up with Bajaj Allianz General Insurance for sale of the laters
products at the branches. With the tie up with Bajaj, IDBI is in a position to satisfy all
the insurance needs of the client at the branch level.
Some common Products offered by IDBI
 Family Care
Is a mediclaim policy special tailor made for the account holders of IDBI Bank. In this
policy the entire family can be covered under one policy. Bajaj Allianz has given
special rates to the customers of IDBI bank. And only the customers having an account
with IDBI bank can take this policy Vehicle Insurance / House Insurance etc. The
account holders can also get their vehicle insurance done from IDBI bank as well as
House and other insurable products insured through IDBI bank.
 Revenue From sale of General Insurance
Sale of general insurance generates revenue of around 10-12 % for the bank. IDBI
Margao was one of the late entrants in the sale of general insurance and has made a
good start by bringing in good number of medicalaim policy and a couple of new
vehicle insurance on a month-to-month basis.
 Depository Services-
A depository can be compared to a bank. Holding a Demat account is a paperless,
painless and convenient for buying and selling of shares in electronic form with total
security and without any delays A depository holds securities (like shares, debentures,
bonds, Government Securities, units etc.) of investors in electronic form. Besides
holding securities, a depository also provides services related to transactions in
securities. In India at present we have two depositories NSDL & CDSL. IDBI Bank is a
depository participant with both CDSL and NSDL.
RESEARCH METHDOLOGY
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INTRODUCTION:
Research in Common parlance refers to search for Knowledge. It’s a scientific and
systematic search for pertinent information on specific topic. Research is an art of
Scientific investigation its mean Systematized effort to gain new Knowledge.
According to Clifford woody “Research Comprises defining and redefining problem
formulating hypothesis or suggested solution Collecting, Organizing and evaluating
data making deductions and reaching Conclusion at Carefully testing the Conclusion to
determine whether they fit the formulating hypothesis.
In Short the Search for Knowledge through Objective and systematic method of finding
solution to a problem is research its refer to the systematic method Consisting
enunciating the problem, formulating a hypothesis, Collecting the fact or data analysis
the fact and reaching Certain Conclusion in the form of Solution.
TITLE OF THE STUDY
“Customer awareness towards retail banking in IDBI bank”
OBJECTIVE OF THE STUDY
The Purpose of research is to discover answer to question through the Application of
scientific procedure. The main aim of research is to find out the truth which is hidden
and which has not been discovered as yet.
 To know and apply different market research techniques in our study as follows:
o Sampling Design
o Research Methodology
o Questionnaire Design
 To highlight the satisfaction level regarding products.
 To know the perception regarding IDBI products and services.
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 To gain familiarity with a phenomenon or to achieve new insights into it (Studies
with this object in view are termed as exploratory or formulative research studies)
 To portray accurately the characteristics of a particular individual Situation or a
group (Studies with this object in view are known as descriptive research studies).
TYPE OF RESEARCH
THERE ARE TWO TYPE OF RESEARCH DESIGN ARE FOLLOWING:-
 DESCRIPTIVE RESEARCH DESIGN
 QUANTITATIVE RESEARCH DESIGN
DESCRIPTIVE RESEARCH DESIGN:
Descriptive research includes survey and fact finding enquiries of different
Kinds. The major Purpose of descriptive research is description of State affairs as it
exists in present. In social and business research we quite often use. We have done
Survey found fact by personal interview so it is descriptive.
QUANTITATIVE RESEARCH DESIGN:
Quantitative research is based on the measurement of quantity or amount. It is
applicable to phenomena that can be expressed in term of quantity. We have also
found requirement in quantity so it’s the quantitative research.
SAMPLE DESIGN
Sample design refers to the technique or the procedure the researcher would adopt in
selecting item for the Sample. Sample design may be well lay down the number of
items to be included in the sample that is the size of the sample design is determined
before data are collected. Here we have used random sampling and the sample size
was 50. We have made a questionnaire through personal interview filled the
questionnaire.
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SAMPLING
To serve the objective and study the scope banks we have designed
questionnaire.The questionnaire was developed to check the level of satisfaction the
people after getting loan from their favourable institutions and the factors they consider
important while selecting a bank to getting the home loan and personal loan And what
facilities they require from their bankers or their grievances arising due to non fulfilment
of their needs and what is their opinion regarding different categories of banks
DATA COLLECTION
Basically there are two main method of data Collection primary data and Secondary
data. Primary data are those which are Collected freshly and the first time and thus
happen to be original in character. Other hand Secondary data are those which have
already been collected by someone else and which have already been passed through
the Statistical granting.
PRIMARY DATA
QUESTIONNAIRE METHOD : -
This method of data collection is quite popular, particularly in case of big enquiries. It is
being adopted by private individuals, research workers private and public organization
and even by governments in this method a questionnaire Consists of a number of
question printed or typed in definite order on a form or set of form I have made a
Questionnaire for Survey. The inquiry was done of the respondents through
questionnaire in which the same set of questions were asked to the very respondents
falling within out sample. The advantage is that it is simple to administer easy to
tabulate and analyse.
PERSONAL INTERVIEWS:
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The interview method of collecting data involves presentation of oral verbal stimuli and
reply in term of oral verbal responses. We have used this method through personal
interview.
SECONDARY DATA: Secondary data means data that are already available they
refer to the data which have already been collected and analyzed by someone else.
We have used for it following method Internet and journals of company. The search
was done on internet and related magazines, company’s websites to extract relevant
information. The other necessary information regarding all Banks products and other
bank products and offerings were obtained through printed sources such as Handouts,
Pamphlets, Advertisements and circulars etc.
Tools and Techniques
As no study could be successfully completed without proper tools and techniques,
same with my project. For the better presentation and right explanation used tools of
statistics and computer very frequently. Basic tools which used for 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. Because used bar charts and pie charts in project
for showing data in a systematic way, so it need not necessary for any observer to
read all the theoretical detail, simple on seeing the charts anybody could know that
what is being said.
Technological Tools
· Ms- Excel
· Ms-Access
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· Ms-Word
Microsoft-Excel had a great role in this project, it created a situation of “you sit and
get”. Microsoft-Access did the performance of my personal assistant who organizes my
all the details of document without disturbing them even a single time in all the project
duration.
LIMITATIONS
 Due to the financial & time constraints the study was limited to our place thus the
conclusion arrived in the end rely in short term experience.
 Being an opinion survey the personal bases of the respondents might have entered
into their responses.
 Time constraints resource constraints were some of the limitations.
 The selected sample might have affected the results of the study therefore the
findings & conclusions of the study are only suggestive & not conclusive.
 Sample was chosen according to convenience & judgment sampling & not
according to random sampling.
 The sampling error that appeared due to the kind of sampling technique adopted.
 Indifference and lack of interest disposed by a few respondents leading to
unauthentic responses.
 Time proved to be a major constraint as far as collection and analysis of data was
concerned.
To overcome the above limitations and to minimize their impact on the findings of my
report I had to meet more respondents than my actual sample size.
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ANALYSIS AND INTERPRETATION
The following information contains the data interpretation of the questionnaire. The
respondent’s responses for the questions have been interpreted and a finding has
been made based on the respondents responses.
TABLE -1: Demographic details of the IDBI respondent’s
CHART- 1:
98
Age
Frequenc
y Percent
25-35 24 24%
36-45 28 28%
46-55 26 26%
Above
55 22 22
Total 100 100

Interpretation:
From the above data, it is observed that 28% of the respondents are belonging to the
age category of 36-45yrs. So it is concluded that the majority of the respondents fall
under this category.
TABLE -2 : Gender details of the IDBI respondents
Gender
Frequenc
y Percent
Male 72 72%
Female 28 28%
Total 100 100
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CHART -2 :
Gender Ratio of the respondents
72%
28%
Male
Female
Interpretation:
From the data it is observed that 72% of the respondents are males. So, it is
concluded that the majority of the respondents are males.
TABLE -3
Education
Frequenc
y Percent
School 34 34
UG 40 40
PG 26 26
Total 100 100
CHART -3
100

Educational details of the respondents
34%
40%
26%
School UG Pg
Interpretation : From the above data, it is observed that 40% of the respondents are
graduated whereas 34% have school education; the remaining 26% being post
graduated.
TABLE -4 : Occupation details of the IDBI respondent’s
Occupation
Frequenc
y Percent
Service 62 62
Business 16 16
Pensioner 20 20
House-wife 2 2
Total 100 100
CHART -4
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Interpretation :
From the above data, it is observed that 62% of the respondents are in service while
only 2% house- wives. So it is concluded that the majority of the respondents fall under
the service category.
TABLE -5: Income details of the IDBI respondent’s.
Income
Level Percent
5000
-15000 34
15001-
25000 28
25001-
35000 18
Above
35000 20
Total 100
CHART-5
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Interpretation:
From the above data, it is observed that 34% of the respondents are belonging to the
income category of Rs5000-15000 p.m. So it is concluded that the majority of the
respondents fall under that income level.
TABLE .6 : Number of years the respondent’s have been associated with IDBI.
No. of Years
Frequenc
y Percentage
Less than
1yr 6 6
1-4 yr 22 22
4-7 yr 20 20
7-10 yr 12 12
10-13 yr 28 28
13-16 yr 10 10
16-19 yr 2 2
100 100
103

Total
Interpretation: The above data shows that maximum number (28%) of the
respondents are associated with the bank from last 10-13 years.
TABLE -7: Accounts the respondents have with the bank.
A/c type Percent
Savings A/c 100
Current A/c 12.7
Availed Loan 9.3
3rd Party
Product 22.7
CHART -7:
104

Accounts the Respondents have with the bank
100
80
60
40
20
0
Percentage
Percent
Accounts
Savings A/c Current A/c Availed Loan 3rd Party Pdt
Interpretation:
The above data makes it very clear that only very few customers have availed loan
from the bank and invested in the third party products.
.
TABLE-8: Awareness of the respondents on the ATM services provided by IDBI.
Services
Frequenc
y Percentage
Withdrawal of
Cash 98 98
Deposit Cash/
Cheques 74 74
Balance
Verification 98 98
Requirement for 46 46
105

Cheque Book
Interpretation: The above data shows that 98% of the respondents are aware of cash
withdrawal and balance verification through ATM service of the bank whereas 74%
and only 46% are aware about depositing cash/ cheque and requirement for cheque
book/ statement respectively.
106

TABLE-9: Awareness of the respondents on the internet banking services
provided by IDBI.
Services
Frequenc
y Percentage
Transfer funds 34 34
Bill/ Loan
Payment 26 26
DD/ Term Deposit
Request 22 22
Getting
Reminders 28 28
None 66 66
Interpretation: The above data shows that 34% of the respondents are aware of
transferring funds through internet banking services whereas only 28% and 26% are
aware about getting reminders and payment of bill/ loan respectively. It is also shown
that 66% of the respondents are not aware of any services provided by the internet
banking of IDBI.
107

TABLE -10 :Awareness of the respondents on the mobile banking services
provided by IDBI
Services Frequency Percent
A/c Balance 42 42
Cheque Details 24 24
Reminders/ alerts 42 42
None 56 56
Interpretation: The above data shows that 42% of the respondents are aware of
checking account balance through mobile banking services whereas 42% and only
24% are aware about receiving reminders and knowing the cheque details respectively
through this service. It is also shown that 56% of the respondents are not aware of any
services provided by the mobile banking of IDBI.
TABLE -11: The various banks preferred for availing the loan.
108

Name of Banks
Frequenc
y Percentage
Federal Bank 12 12%
ICICI 16 16%
SBI 14 14%
SIB 10 10%
IDBI 38 38%
Axis Bank 6 6%
HDFC 4 4%
Total 50 100
CHART -19:
Interpretation: The above data shows that out of the 50 respondents who has availed
loan 38% as availed it from IDBI, followed by 12% from Federal Bank, 16% from ICICI
and the rest from other few banks as shown in the chart.
TABLE -12: Reasons which influenced the customers choose a bank for the
loan.
Reasons Frequenc Percent
109

y
Good customer service 18 18%
Low interest rate 28 28%
Quick processing 18 18%
Customer Satisfaction 4 4%
Simple Formalities 16 16%
Near to
home/business/work place 12 12%
Promptness and
knowledge of Staff 8 4%
Total 100 100
CHART -20:
Interpretation:
The above data shows that the attribute which the respondents give the first
preference for to choose a bank for availing a loan is lowest interest rate, followed by
good customer service, quick processing and so on.
110

TABLE -13: Rating given to IDBI’s transaction speed when compared to the
other banks, the respondents have account with.
Ratings Percentage
Average 10%
Good 57%
Very Good 27%
Excellent 6%
Interpretation
The data above shows that 57% of the respondents have rated this attribute to be
good. So it is interpreted that the transaction time of IDBI is in par with other banks, the
respondents have account with.
111

TABLE -14: Rating given to IDBI’s transaction cost when compared to the other
banks, the respondents have account with.
Ratings Percentage
Poor 1.2%
Average 32%
Good 58%
Very Good 7%
Excellent 1.8%
CHART-18
Interpretation:
The data above shows that 58% of the respondents have rated this attribute to be
good. So it is interpreted that the transaction cost of IDBI is in par with other banks, the
respondents have account with.
TABLE -15:
112

Rating given to SIB’s technology & innovation when compared to the other
Ratings Percentage
Average 26%
Good 54%
Very Good 15%
Excellent 5%
CHART-19
Interpretation: The data above shows that 54% of the respondents have rated this
attribute to be good. So it is interpreted that the technology & innovation of IDBI is in
par with other banks, the respondents have account with.
SWOT ANALYSIS
113

SWOT ANALYSIS:
Banking Sector
114

SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses,
Threats and opportunities leading to gauging the competitive potential of the company.
STRENGTHS
1. Aggression towards development the existing standards by banks.
2. Strong regulatory impact by central bank on all the banks.
WEAKNESS
1. Poor technology infrastructure
2. Ineffective risk measures
OPPORTUNITIES
1. Increasing risk management expertise
2. Need significant connection between business credit and risk management and
information technology
THREATS
1. Inability to meet additional capital requirements
2. Loss of capital to entire banking system
3. Huge investment in technology
SWOT ANALYSIS: IDBI BANK
115

STRENGTHS
 It's the First Indian Bank to provide: ATM Next - an information portal on
ATMsInstant Account Opening Talking ATMs GiftCard - the Prepaid GiftCard, a
gift that cant go wrong EasyFill - Instant Mobile Refill Service; amongst many
other services
 IDBI bank also actively manages:IPA services for CP issues , Debt Syndication
Acting as Collecting Bankers for IPO, Debt issues
 The various business units comprise of 75% while support functions make up
for 12% and operations for the remaining 13% of the total manpower strength of
the bank
 There are 99 branches in 69 cities
 More than 297 atms are there of the bank
 Financial advice extended to all customers free of charge
 Minimum charge for a demand draft
 Large number of cross products which are offered like NRI feedback account,
online tax payments,family care account , personal loans,CARD TO CARD
MONEY transfer.
WEAKNESS
 Phone banking is provided only to those customers who maintain the
account above 100000
 Weak customer base in jaipur in comparision to the SBBJ and ICICI bank
 Basic focus is towords mid and high class people
 Only one branch in jaipur
 Working Hrs are less as comparision to ICICI BANK
116

 Jaipur branch do not provide any advisory services to the customers
 No personal loan account , mutual fund advice to the customers

OPPORTUNITIES
 Development of risk management strategies
– market risk – operational risk – credit risk
 Product innovation and development
– NRI – credit – wealth management
 Product delivery and channel management
– ATM – web – mobile and telebanking – branch
 Alliance and franchise arrangements
 Customer retention initiatives & customer relationship management
 Development of new credit products for rural India
– weather insurance (rainfall, wind speed)
– life and non-life insurance
 Extensive proliferation of both branches and ATMs in jaipur to extend the
market share
 Expanding its branches in rural areas
THREATS
 Very small marketing team of 7 to 8 executives
 Extended banking hours of other banks
 Fast catching concept of 365 days banking in jaipur
 Linked accounts provided by other banks
117

 Increasing the market share of other banks due to aggressive selling
 Increase in the number of foreign banks which provide high degree of value to
the customer
118

FINDINGS
 28% of the respondents fall under the age category of 36- 45 years.
 72% of the respondents are males.
 40% of the respondents are graduates (UG).
 62% of the respondents are with service as their occupation, followed by 20% of
pensioners.
 34% of the respondents have Rs. 5000- 15000 as their income level per month.
 28% of the respondents are associated with the bank from the past 10- 13 years.
 Only 22.7% of the respondents have invested in third party products, whereas
only 9.3% have availed loan from the bank.
 The respondents have rated the bank good with regard to the fastness, the
personnel show in responding/ attending to the customer.
 50% of the respondents have rated the bank good with regard to the transaction
time taken for cash deposit.
 38% of the respondents have rated the bank good with regard to the easiness
the customers found to open an account with the bank.
 63.3% of the respondents have rated the bank good with regard to the product/
service innovation in the past two years.
 56% of the respondents have rated the bank, average, with regard to the
promptness in keeping the customers informed of deposit rates/ service
charges ; whereas the management rates it to be very good which reveals a gap
existing in this service between the two perspectives.
 42% of the respondents have rated the bank average with regard to the quality of
the ATM services provided by the bank; whereas management rates it to be very
good which again reveals a gap existing in between the two perspectives.
 42% out of the few who have availed loan from any of the bank have rated the
bank’s fastness in processing and disbursing loans to be good.
 46% of the respondents have rated the bank average with regard to the interest
rate currently being offered. The management has rated this as good which
120

shows a slight gap existing and also that the interest rate offered by the bank is
not much satisfactory to the customers.
 38% out of the 50 respondents who use the internet and mobile facilities have
rated bank’s this facility to be average. The management has rated this as very
good which shows a slight gap existing and also the dissatisfaction of the
customers regarding this service.
 Only 46% of the respondents are aware of the facility such as requirement for
cheque book/ statement through the ATM.
 Only 30% and 24% of the respondents use the mobile and internet banking
facility of the bank respectively.
 Interest rate offered by a bank is rated as the first attribute which a customer
considers to choose a bank before going for a bank loan.
 The data shows that out of the 50 respondents who has availed loan 42% as
availed it from IDBI, followed by 12% from Federal Bank, 16% from ICICI and
the rest from other few banks as shown in the chart.
 The data shows that the major competitor for the bank is ICICI bank, followed by
SBT Bank, SBI and others as shown in the table.
 The data above shows that 44% of the respondents have rated this attribute to
be good. So it is interpreted that the customer service of IDBI is in par with other
banks, the respondents have account with
be good. So it is interpreted that the transaction time of IDBI is in par with other
be good. So it is interpreted that the transaction cost of IDBI is in par with other
be good. So it is interpreted that the technology & innovation of IDBI is in par
with other banks, the respondents have account with.
121

 Majority of the respondents have found to have not received any privileges/
benefits for being a regular/ long term customer of IDBI.
122

CONCLUSION
Customers always look for more user- friendly products and better interest rates
when compared to other banks they have account with, so, through product
innovation and competitive pricing strategy the bank can foster business
relationship with its customers. The gap analyzed can be minimized by better
technology, customer service and also by creating awareness about the various
services; thereby increasing the customer base. So as to retain the existing
customers and to build up customer loyalty, Customer Relationship Management
should be given more importance.
123

SUGGESTION--
 46% of the respondents felt that the interest rates on loan were high and hence
the interest rates may be reduced to attract more customers.
 Only 28% of the respondents being female, the bank can look forward to design
few more schemes to attract the female customers.
 Only 22.7% of the respondents having been invested in the third party products
the bank can look for promoting the same. The bank also has a huge scope for
this, with high income group NRI customers, in the area.
 Since a large number of the respondents are unaware of the services provided
through internet(66%)/ mobile(56%) banking; initiatives, such as posting a list of
services that are rendered to the customers inside the bank premises, demo of
the services in the bank website; can be done to make the customers aware,
and use the services provided through ATM, internet and mobile banking of the
bank.
 As the cross tabulation reveal, except one out of the few customers who have
been associated with the bank for the past 15-13 years have not been receiving
any privilege. It is therefore suggested to give privilege to its long term
customers so as to retain them.
124

QUESTIONNAIRE ( For Customers ) .
I will be thankful to the respondents, if you will spare 4-5 minutes from your valuable
time to answer this questionnaire, which will help, The South Indian Bank to reach upto
your expectations in Retail Banking and also finish my project towards the partial
fulfillment of MBA Degree.
1. Age:
25-35 yrs 36-45 yrs 46-55 yrs Above 55yrs
2. Gender: Male Female
3. Educational Qualification:
School UG PG
4. Occupation:
Student Service Business
Pensioner House-wife
5. Income Level:
Rs. 5000 – Rs.15000 Rs. 15001- Rs 25000
Rs. 25001- Rs. 35000 Above Rs. 35000
6. For how long are you associated with the IDBI? ( in mth/ yrs) _____________ .
7. In IDBI Bank, you have:
Savings A/c Current A/c Has availed any loan
Invested in any third party pdt like LIC, Mutual funds, etc.
125

8. Please use a tick mark in the appropriate column to give your responses for the
following statements:
1=Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree
S.No: 1 2 3 4 5
ATM Service
a. I don’t face any problem in withdrawing cash from ATM.
b. ATM services are useful for me to deposit cash & cheques.
c. ATM services are useful for me to require my Cheque book.
d. ATM services are useful for me to get the enquiry statement of
my account.
Internet Banking
e. It helps me to make an instant fund transfer or schedule a
transfer for the future date.
f. It helps me know the status of my Cheque.
g. It helps me in bill payment.
h. It helps me to get the interest details on deposit accounts.
i. It helps me get alerts like Deposit maturing soon, loan
repayment alert, minimum balance alert...
Mobile Banking
j. It is useful for me to get the balance in any of my accounts
instantaneously.
k. It is useful for to inquire on the Status of a cheque issued by
me.
l. It helps me to locate the nearest IDBI ATMs based on PIN
Code
126

m. It helps me get alerts like Deposit maturing soon, loan
repayment alert, minimum balance alert...
n. I will be able to set my own time preferences for receiving
messages.
10. How many facilities out of the following are you aware of being provided through
the ATM services of IDBI?
Withdrawal of Cash
Deposit Cash/ Cheques
Balance verification
Requirement for Cheque Book/ Statement
the internet banking of IDBI?
To transfer funds from the bank to personalized transaction.
Bill/Loan Payment
DD/ Term Deposit Request
Getting reminders/alerts.
None of the above.
the mobile banking of IDBI bank?
A/c balance any time
127

To know the cheque details
Receiving reminders/ alerts.
None of the above
13. What are all the attributes you consider to choose a bank before going for a bank
loan? (Rank them from 1= most preferred to 5= least preferred).
Interest rates offered
Security demanded
Efficient Customer Service
Repayment Period
Eligibility for loan (like your age, income,etc.)
14. Which were the all the banks in your consideration set when you planned for
availing a loan?
________________________________________________________________
__________________________________________________________________
15. Which bank did you finally prefer and what influenced you for that?
Bank: _______________
Reason: _____________________________________________
16. Which loan will you prefer the most to take from IDBI?( Pls rank these from 1- most
preferred to 6- least preferred)
Gold Loan Educational Loan
Personal Loan House Loan
128

Vehicle Loan Agricultural Loan
17. Which are all the other banks you have account in, other than IDBI?
___________________________________________________________________
___________________________________________________________________
18. How do you rate IDBI when compared to those banks, in the following attributes?
E = Excellent VG = Very Good G = Good A = Average P = Poor
Attributes E VG G A P
Efficient Customer
Service
Time Saving
Transaction Cost
Technology & Innovation
19. Did you receive any privileges/ benefits for being a regular/long-term customer of
IDBI?
If Yes, what ___________________________________________________________
20. Did you find any drawbacks in the services of IDBI?
Yes No
21. If Yes, please give some suggestions to serve you better.
_________________________________________________
_________________________________________________
129

_________________________________________________
_________________________________________________
22. Are you a Non Residential Indian?
Yes No
130

BIBLIOGRAPHY
BOOKS
 Zeithmal V. A., GremblerD.D., BitnerM.j., and PanditA.:Service
Marketing Integrated customer Focus Across The Firm” , Fourth Edition
 ZillurRahman, “Service Quality: Gap in the Indian Bank Industry” The
ICFAI Journal of Marketing Management.
 NareshK.Malhotra : Marketing Research – An applied orientation, Fifth
Edition
 Richard I.Levin,DavidS.Rubin –Statistics For Management, Seventh
Edition
 Kothari, C.R. : Research Methodology methods and techniques,
(second revised edition),New Delhi, new age international (P) Limited
publishers, 2008
 Khan, M.Y. : Financial services, (Third Edition)
Generals & Articles-
1. ICFAI Journal of Banking
2. Internet retail banking:
Websites - www.idbibank.com
www2.idbibank.com
wwwgoogle.com
Magazines-
1. investment banking database: retail.
2. Pro.Bankers
3.Business world
4.India today
Newspapers- The Economics times ,The Times of India
131

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