This document provides an overview of banks and banking in India. It discusses how banks play an important role in economic development by facilitating commercial and industrial activities. It also describes the evolution of banking in India from the early days of basic deposit and lending services, to modern banks that offer a wide variety of functions. The nationalization of banks in 1969 and 1980 helped channel financial resources towards uplifting weaker sections of society and aiding development projects. Marketing of banking services involves decisions around products, distribution, pricing, and promotion tailored to meet customer needs in the changing business environment. The Reserve Bank of India regulates all banking activities and different types of banks that make up the banking structure in India, including public sector banks and new guidelines for private banks
The banking industry in India is governed by the Banking Regulation Act of 1949. It began in the late 18th century and saw major developments post-independence including the nationalization of banks in 1969. Today it includes both public and private sector banks as well as foreign banks. The industry has grown significantly in size and now includes over 67,000 branches across the country. However, it also faces challenges such as a lack of expertise in new products, increasing competition, and the impact of global financial crises. New trends include a focus on customer centricity, staff efficiency, and greater use of technology.
This document discusses the introduction and growth of internet banking. It begins with an overview of information technology and how technological developments led to the evolution of internet banking. It describes how information technology transformed the banking sector by allowing banks to offer new digital services and connect with customers remotely through online and mobile banking. The document then discusses some of the key benefits that technology provided banks, such as increased productivity, cost efficiencies, and the ability to develop customized products and services for different customer segments. Finally, it explains how information technology freed banks from physical branch constraints and created new opportunities to build closer relationships with customers.
A Study On Comparative Analysis Of Banks Terms Of Service Quality Projectmukesh Patidar
This document provides an overview of the origins and history of the State Bank of India (SBI). It discusses how SBI traces its origins back to 1806 with the establishment of the Bank of Calcutta. It then details the merger of the Bank of Calcutta with the Bank of Bombay and Bank of Madras in 1921 to form the Imperial Bank of India, which later became the SBI after nationalization in 1955. The document also provides background on SBI's large branch network and role as one of the largest banks in India. It discusses the key developments in the 19th century that led to the formation of the original presidency banks that preceded the modern SBI.
The document provides an overview of HDFC Bank and its sales process for opening savings accounts. It discusses HDFC Bank's recruitment criteria for sales executives, which includes being at least 12th passed, having good personal contacts, convincing power, and being over 18 years old. Once recruited, sales executives are paid commissions to sell various bank products and services to prospective clients using their personal networks. The document also outlines several milestones in HDFC Bank's history, including numerous awards and recognition received between 2004-2007 for innovation, customer service, and financial performance.
This document is a project submitted by Naorem Boris Singh for their B.Com degree at Shri Ram College of Commerce in Delhi, India. The project examines the popularity of internet banking in India. It includes an index, executive summary, research methodology, and chapters on the history of banking in India, internet banking features and role, the scenario of internet banking in India, the pros and cons of internet banking, a case study on State Bank of India, and conclusions. The project was conducted under the supervision of Sudhanshu and does not have any commercial implications.
Commercial banks in India accept deposits and provide loans and other financial services. The key functions of commercial banks are accepting deposits, advancing loans, discounting bills of exchange, and providing agency and general services. In 1969 and 1980, the Indian government nationalized several large commercial banks to increase access to credit in rural and underserved areas and promote equitable development. The objectives of nationalization were to reduce economic concentration, mobilize resources nationwide, and fulfill the credit needs of small businesses and farmers.
This document provides an introduction and overview of State Bank of India's (SBI) financing activities for small and medium enterprises (SMEs) based on a project report and survey conducted in Rajkot, Gujarat, India. It discusses SBI's history and operations, defines SMEs, describes the importance of SME financing for economic development, and outlines SBI's procedures and services for financing SMEs. The survey found that marketing efforts by SBI helped the bank earn 18 crores of new business from SMEs in the industrial areas surveyed in Rajkot.
Summer internship tranning report on jccb finalvachhani sumit
This document is a comprehensive project report on the Junagadh Commercial Co-operative Bank submitted in partial fulfillment of an MBA degree. It includes an introduction, certificate from the faculty guide and director, acknowledgements, index, and initial sections on the history of banking in India and an overview of the current banking scenario and types of banks. The report provides information about the structure and objectives of the project.
The banking industry in India is governed by the Banking Regulation Act of 1949. It began in the late 18th century and saw major developments post-independence including the nationalization of banks in 1969. Today it includes both public and private sector banks as well as foreign banks. The industry has grown significantly in size and now includes over 67,000 branches across the country. However, it also faces challenges such as a lack of expertise in new products, increasing competition, and the impact of global financial crises. New trends include a focus on customer centricity, staff efficiency, and greater use of technology.
This document discusses the introduction and growth of internet banking. It begins with an overview of information technology and how technological developments led to the evolution of internet banking. It describes how information technology transformed the banking sector by allowing banks to offer new digital services and connect with customers remotely through online and mobile banking. The document then discusses some of the key benefits that technology provided banks, such as increased productivity, cost efficiencies, and the ability to develop customized products and services for different customer segments. Finally, it explains how information technology freed banks from physical branch constraints and created new opportunities to build closer relationships with customers.
A Study On Comparative Analysis Of Banks Terms Of Service Quality Projectmukesh Patidar
This document provides an overview of the origins and history of the State Bank of India (SBI). It discusses how SBI traces its origins back to 1806 with the establishment of the Bank of Calcutta. It then details the merger of the Bank of Calcutta with the Bank of Bombay and Bank of Madras in 1921 to form the Imperial Bank of India, which later became the SBI after nationalization in 1955. The document also provides background on SBI's large branch network and role as one of the largest banks in India. It discusses the key developments in the 19th century that led to the formation of the original presidency banks that preceded the modern SBI.
The document provides an overview of HDFC Bank and its sales process for opening savings accounts. It discusses HDFC Bank's recruitment criteria for sales executives, which includes being at least 12th passed, having good personal contacts, convincing power, and being over 18 years old. Once recruited, sales executives are paid commissions to sell various bank products and services to prospective clients using their personal networks. The document also outlines several milestones in HDFC Bank's history, including numerous awards and recognition received between 2004-2007 for innovation, customer service, and financial performance.
This document is a project submitted by Naorem Boris Singh for their B.Com degree at Shri Ram College of Commerce in Delhi, India. The project examines the popularity of internet banking in India. It includes an index, executive summary, research methodology, and chapters on the history of banking in India, internet banking features and role, the scenario of internet banking in India, the pros and cons of internet banking, a case study on State Bank of India, and conclusions. The project was conducted under the supervision of Sudhanshu and does not have any commercial implications.
Commercial banks in India accept deposits and provide loans and other financial services. The key functions of commercial banks are accepting deposits, advancing loans, discounting bills of exchange, and providing agency and general services. In 1969 and 1980, the Indian government nationalized several large commercial banks to increase access to credit in rural and underserved areas and promote equitable development. The objectives of nationalization were to reduce economic concentration, mobilize resources nationwide, and fulfill the credit needs of small businesses and farmers.
This document provides an introduction and overview of State Bank of India's (SBI) financing activities for small and medium enterprises (SMEs) based on a project report and survey conducted in Rajkot, Gujarat, India. It discusses SBI's history and operations, defines SMEs, describes the importance of SME financing for economic development, and outlines SBI's procedures and services for financing SMEs. The survey found that marketing efforts by SBI helped the bank earn 18 crores of new business from SMEs in the industrial areas surveyed in Rajkot.
Summer internship tranning report on jccb finalvachhani sumit
This document is a comprehensive project report on the Junagadh Commercial Co-operative Bank submitted in partial fulfillment of an MBA degree. It includes an introduction, certificate from the faculty guide and director, acknowledgements, index, and initial sections on the history of banking in India and an overview of the current banking scenario and types of banks. The report provides information about the structure and objectives of the project.
There are four types of commercial banks: public sector banks which are government owned, private sector banks which are privately owned, foreign sector banks which are branches of foreign banks, and differential banks which provide specialized services. Co-operative banks are owned by their members and customers and include state, central, and primary co-operative banks. Specialized banks focus on specific areas, with NABARD supporting agriculture and rural development, EXIM Bank facilitating exports and imports, and SIDBI assisting small industries. Regional Rural Banks operate locally in rural areas and are jointly owned by the central and state governments and sponsoring banks.
The document provides an overview of the banking industry in India. It discusses key points:
- The Reserve Bank of India (RBI) acts as the central bank and regulates monetary policy, banking supervision, foreign exchange and more.
- India has a multi-tiered banking structure including retail banking for consumers, international banking, and wholesale banking for large corporations.
- Banks in India must follow regulations around capital requirements, priority sector lending targets, and controlling non-performing assets.
- Performance is measured using metrics like capital adequacy, asset quality, management efficiency, earnings quality, and more.
This document provides definitions and summaries of key terms and sections from the Banking Regulation Act of 1949. It defines what constitutes banking business in India and what activities banks are and are not allowed to conduct. Some key points include:
1. Section 5 defines a banking company as one that transacts banking business in India, which includes accepting deposits that are repayable on demand and allowing withdrawals by cheque.
2. Banking policy refers to policies set by the Reserve Bank of India to ensure minority stability, sound economic growth, and the interests of depositors.
3. The act prohibits banks from carrying out trading activities and holding immovable property for over 7 years. It also restricts the employment of managing agents
Commercial banks occupy a dominant position in the money market and form the largest component of any country's banking structure. They are the oldest, largest, and fastest growing financial institutions in India. Commercial banks play a major role in economic growth by mobilizing savings, providing short-term loans and credit, and facilitating trade and business activity through services like checking accounts and lending. They act as reservoirs that collect savings from households and allocate those funds as loans to businesses and individuals for productive investment and use.
The Reserve Bank of India (RBI) is India's central banking institution that controls monetary policy and ensures price stability. It was established in 1935 and nationalized in 1949. The RBI has 23 departments that handle functions like banking operations, monetary policy, government accounts, rural/agricultural credit, and economic analysis. It aims to protect depositor interests and public interests through regulatory frameworks while allowing sectors like cooperative banking to grow in a stable manner.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 under the RBI Act and was nationalized in 1949. RBI regulates monetary policy and banking operations in India through various quantitative and qualitative methods. It acts as a bank for the government and commercial banks and manages foreign exchange reserves and monetary policy tools like bank rate, open market operations, and cash reserve ratio to regulate money supply.
Role and Status of Cooperative Banks In IndiaShreya Mathur
This document discusses cooperative banks in India. It provides background on cooperative banks, noting that they are owned and operated by their members and focus on serving local communities. The document outlines the history and regulations governing cooperative banks in India. It then describes the roles of different types of cooperative banks, including primary cooperative credit societies, central cooperative banks, and state cooperative banks. The summary highlights the focus of cooperative banks on rural areas and agriculture as well as their importance in providing credit to those sectors in India.
Banking originated in India in the late 18th century with the Bank of Hindustan and General Bank of India. The State Bank of India, formed in 1955 from three banks merging in 1921, is the oldest and largest bank still in existence today. Banking in India went through several eras - under colonial rule from the 1820s-1940s, it was primarily private banks. In 1949, the Reserve Bank of India was established and 14 largest commercial banks were nationalized in 1969. Six more banks were nationalized in 1980. Liberalization in the 1990s allowed new private banks to open.
The SARFAESI Act allows banks and financial institutions to recover non-performing assets without court intervention. It aims to expedite recovery of NPAs. The act empowers lenders to issue recovery notices giving 60 days to pay dues and take possession of secured assets if dues are not paid. It provides three methods for NPA recovery - securitization, asset reconstruction, and enforcement of security. The act applies to NPAs over Rs. 1 lakh and was expanded to include NBFCs.
This document discusses various types of customers and account holders that banks deal with. It describes ordinary customers as well as special customers like minors, partnership firms, joint Hindu families, joint stock companies, and more. For each type of special customer, it provides details on legal considerations for opening and operating accounts, required documents, authorized signatories, and other precautions banks must take. The document aims to outline procedures and legal compliance for properly handling different customer accounts.
This document provides an overview of public sector and private sector banks in India. It begins with background on the Indian banking system and classifications of banks based on ownership, law, and function. It then discusses the privatization of Indian banking and the structure of the banking system. The primary functions of banks are described as accepting deposits, advancing loans through various methods, and credit creation. Secondary functions include remittance facilities, agency services, and other supplementary roles. The document presents research methodology used for a comparative study and analyzes data collected on performance indicators of sample public and private banks. It concludes with findings, suggestions and recommendations.
Bank of Baroda is an Indian state-owned bank headquartered in Vadodara, Gujarat. It was founded in 1908 by Maharaja Sayajirao Gaekwad III of Baroda. In 1969, it was nationalized along with 13 other major commercial banks. Today, it has a presence in 22 countries across 5,481 branches. The bank's key functions include accepting deposits, lending funds, and providing other banking and financial services. It has over 55,000 employees serving over 82 million customers globally. Bank of Baroda remains committed to serving customers and augmenting stakeholder value through concern, care and competence.
The document provides information on the Reserve Bank of India (RBI), which is India's central bank. It details that the RBI was established in 1935 and nationalized after independence. The document outlines the RBI's objectives such as managing monetary policy, maintaining price stability, and facilitating agriculture and industrial finance. It also describes the RBI's roles like being the sole issuer of currency, acting as the banker and debt manager to the government, regulating other banks, and using tools like open market operations to control money supply and credit.
The document provides an overview of the banking system in India. It discusses the history and nationalization of banks in India. There are currently 88 scheduled commercial banks in India, including 27 public sector banks, 31 private banks, and 38 foreign banks. The document then examines three specific banks - The Jammu & Kashmir Bank Limited, Kotak Mahindra Bank, and The Saraswat Co-operative Bank Limited - comparing their account types, services, and operating policies. Both public and private sector banks in India have grown in recent decades and contributed significantly to the Indian economy.
Indian Banking Industry - Challenges, Opportunities and Growth Driver of Bank...Resurgent India
Indian banks face challenges such as low banking access rates and rising customer expectations, but also opportunities for growth. Key challenges include implementing Basel III capital requirements, increasing competition, and rising non-performing assets. However, opportunities exist in expanding mortgage lending, wealth management, and rapid ATM/branch growth. Economic development, favorable demographics, and policy support can further drive the banking industry's growth in infrastructure financing, financial inclusion, and technological innovation.
“A COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS WIT...Deepanjan Das
The document discusses the history and evolution of banking in India. It describes how banks started in India in the late 18th century and were nationalized in 1949. It outlines the three phases of banking in India - the early phase, nationalization phase, and reforms phase from 1991 onward. It provides details about the Reserve Bank of India and its functions as the central bank. [END SUMMARY]
This document discusses the role of banks in the Indian economy. It begins by defining what a bank is and explaining the nationalization of banks in India in 1969 and 1980. It then discusses reasons for nationalization such as fulfilling social goals and ensuring credit is allocated according to development priorities. The document outlines key roles of banks like encouraging savings, acting as intermediaries between lenders and borrowers, and facilitating business and development. It also discusses types of banks in India like commercial banks, agricultural banks, and cooperative banks. In conclusion, it emphasizes banks' role in capital formation, modernization, and promoting various sectors like trade and entrepreneurship to support economic growth.
There are four types of commercial banks: public sector banks which are government owned, private sector banks which are privately owned, foreign sector banks which are branches of foreign banks, and differential banks which provide specialized services. Co-operative banks are owned by their members and customers and include state, central, and primary co-operative banks. Specialized banks focus on specific areas, with NABARD supporting agriculture and rural development, EXIM Bank facilitating exports and imports, and SIDBI assisting small industries. Regional Rural Banks operate locally in rural areas and are jointly owned by the central and state governments and sponsoring banks.
The document provides an overview of the banking industry in India. It discusses key points:
- The Reserve Bank of India (RBI) acts as the central bank and regulates monetary policy, banking supervision, foreign exchange and more.
- India has a multi-tiered banking structure including retail banking for consumers, international banking, and wholesale banking for large corporations.
- Banks in India must follow regulations around capital requirements, priority sector lending targets, and controlling non-performing assets.
- Performance is measured using metrics like capital adequacy, asset quality, management efficiency, earnings quality, and more.
This document provides definitions and summaries of key terms and sections from the Banking Regulation Act of 1949. It defines what constitutes banking business in India and what activities banks are and are not allowed to conduct. Some key points include:
1. Section 5 defines a banking company as one that transacts banking business in India, which includes accepting deposits that are repayable on demand and allowing withdrawals by cheque.
2. Banking policy refers to policies set by the Reserve Bank of India to ensure minority stability, sound economic growth, and the interests of depositors.
3. The act prohibits banks from carrying out trading activities and holding immovable property for over 7 years. It also restricts the employment of managing agents
Commercial banks occupy a dominant position in the money market and form the largest component of any country's banking structure. They are the oldest, largest, and fastest growing financial institutions in India. Commercial banks play a major role in economic growth by mobilizing savings, providing short-term loans and credit, and facilitating trade and business activity through services like checking accounts and lending. They act as reservoirs that collect savings from households and allocate those funds as loans to businesses and individuals for productive investment and use.
The Reserve Bank of India (RBI) is India's central banking institution that controls monetary policy and ensures price stability. It was established in 1935 and nationalized in 1949. The RBI has 23 departments that handle functions like banking operations, monetary policy, government accounts, rural/agricultural credit, and economic analysis. It aims to protect depositor interests and public interests through regulatory frameworks while allowing sectors like cooperative banking to grow in a stable manner.
The Reserve Bank of India (RBI) is India's central bank. It was established in 1935 under the RBI Act and was nationalized in 1949. RBI regulates monetary policy and banking operations in India through various quantitative and qualitative methods. It acts as a bank for the government and commercial banks and manages foreign exchange reserves and monetary policy tools like bank rate, open market operations, and cash reserve ratio to regulate money supply.
Role and Status of Cooperative Banks In IndiaShreya Mathur
This document discusses cooperative banks in India. It provides background on cooperative banks, noting that they are owned and operated by their members and focus on serving local communities. The document outlines the history and regulations governing cooperative banks in India. It then describes the roles of different types of cooperative banks, including primary cooperative credit societies, central cooperative banks, and state cooperative banks. The summary highlights the focus of cooperative banks on rural areas and agriculture as well as their importance in providing credit to those sectors in India.
Banking originated in India in the late 18th century with the Bank of Hindustan and General Bank of India. The State Bank of India, formed in 1955 from three banks merging in 1921, is the oldest and largest bank still in existence today. Banking in India went through several eras - under colonial rule from the 1820s-1940s, it was primarily private banks. In 1949, the Reserve Bank of India was established and 14 largest commercial banks were nationalized in 1969. Six more banks were nationalized in 1980. Liberalization in the 1990s allowed new private banks to open.
The SARFAESI Act allows banks and financial institutions to recover non-performing assets without court intervention. It aims to expedite recovery of NPAs. The act empowers lenders to issue recovery notices giving 60 days to pay dues and take possession of secured assets if dues are not paid. It provides three methods for NPA recovery - securitization, asset reconstruction, and enforcement of security. The act applies to NPAs over Rs. 1 lakh and was expanded to include NBFCs.
This document discusses various types of customers and account holders that banks deal with. It describes ordinary customers as well as special customers like minors, partnership firms, joint Hindu families, joint stock companies, and more. For each type of special customer, it provides details on legal considerations for opening and operating accounts, required documents, authorized signatories, and other precautions banks must take. The document aims to outline procedures and legal compliance for properly handling different customer accounts.
This document provides an overview of public sector and private sector banks in India. It begins with background on the Indian banking system and classifications of banks based on ownership, law, and function. It then discusses the privatization of Indian banking and the structure of the banking system. The primary functions of banks are described as accepting deposits, advancing loans through various methods, and credit creation. Secondary functions include remittance facilities, agency services, and other supplementary roles. The document presents research methodology used for a comparative study and analyzes data collected on performance indicators of sample public and private banks. It concludes with findings, suggestions and recommendations.
Bank of Baroda is an Indian state-owned bank headquartered in Vadodara, Gujarat. It was founded in 1908 by Maharaja Sayajirao Gaekwad III of Baroda. In 1969, it was nationalized along with 13 other major commercial banks. Today, it has a presence in 22 countries across 5,481 branches. The bank's key functions include accepting deposits, lending funds, and providing other banking and financial services. It has over 55,000 employees serving over 82 million customers globally. Bank of Baroda remains committed to serving customers and augmenting stakeholder value through concern, care and competence.
The document provides information on the Reserve Bank of India (RBI), which is India's central bank. It details that the RBI was established in 1935 and nationalized after independence. The document outlines the RBI's objectives such as managing monetary policy, maintaining price stability, and facilitating agriculture and industrial finance. It also describes the RBI's roles like being the sole issuer of currency, acting as the banker and debt manager to the government, regulating other banks, and using tools like open market operations to control money supply and credit.
The document provides an overview of the banking system in India. It discusses the history and nationalization of banks in India. There are currently 88 scheduled commercial banks in India, including 27 public sector banks, 31 private banks, and 38 foreign banks. The document then examines three specific banks - The Jammu & Kashmir Bank Limited, Kotak Mahindra Bank, and The Saraswat Co-operative Bank Limited - comparing their account types, services, and operating policies. Both public and private sector banks in India have grown in recent decades and contributed significantly to the Indian economy.
Indian Banking Industry - Challenges, Opportunities and Growth Driver of Bank...Resurgent India
Indian banks face challenges such as low banking access rates and rising customer expectations, but also opportunities for growth. Key challenges include implementing Basel III capital requirements, increasing competition, and rising non-performing assets. However, opportunities exist in expanding mortgage lending, wealth management, and rapid ATM/branch growth. Economic development, favorable demographics, and policy support can further drive the banking industry's growth in infrastructure financing, financial inclusion, and technological innovation.
“A COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS WIT...Deepanjan Das
The document discusses the history and evolution of banking in India. It describes how banks started in India in the late 18th century and were nationalized in 1949. It outlines the three phases of banking in India - the early phase, nationalization phase, and reforms phase from 1991 onward. It provides details about the Reserve Bank of India and its functions as the central bank. [END SUMMARY]
This document discusses the role of banks in the Indian economy. It begins by defining what a bank is and explaining the nationalization of banks in India in 1969 and 1980. It then discusses reasons for nationalization such as fulfilling social goals and ensuring credit is allocated according to development priorities. The document outlines key roles of banks like encouraging savings, acting as intermediaries between lenders and borrowers, and facilitating business and development. It also discusses types of banks in India like commercial banks, agricultural banks, and cooperative banks. In conclusion, it emphasizes banks' role in capital formation, modernization, and promoting various sectors like trade and entrepreneurship to support economic growth.
This document provides a training manual for the "Economic and Financial Literacy Agents in Factories" program. The manual covers topics related to money and banking, the banker-customer relationship, banking functions, and the role of agent banking. It is intended for individuals who have completed basic economic and financial literacy training and want to work as agent bankers. The manual includes modules that define key concepts, objectives, discussion questions, and essential points about various banking topics and the responsibilities of agent bankers.
The document provides information about banking services and the role of banks. It begins by describing what a bank is - an establishment authorized by the government to accept deposits and provide financial services. It then discusses why banks were needed - as a safe place for people to save money and access funds when needed. The third paragraph summarizes the key functions of banks as accepting deposits, lending money, clearing checks, and providing other financial services to customers.
This document provides an overview of changing business practices in the Indian banking sector due to technological adaptations. It discusses the introduction of payment banks in India, which are non-full service niche banks allowed to accept deposits and provide remittance services but not lending. Regulations for payment banks regarding financial requirements, ownership structures, and permissible activities are outlined. Recent developments and a list of new payment banks launching in India are also mentioned. Mobile wallets and small finance banks, which are other emerging technologies being adopted in the banking sector, are briefly discussed as well.
Banks play a key role in the Indian financial market as the largest providers of credit and attractors of savings. They have supported the growth and development of India. The Reserve Bank of India centrally monitors the banking system. Banks provide various financial services including taking deposits, lending loans, issuing credit/debit cards, fund transfers, and more. Private banks also offer services for high net worth individuals like tax planning and estate planning. A developed financial system is crucial for a country's economic growth.
This document provides an overview of rural lending programs of commercial banks in India. It discusses the importance of rural credit for farmers and small businesses. It then describes the role of commercial banks in providing rural credit and their various loan programs targeted at agriculture and rural populations. It also discusses the types of commercial banks in India including private banks, public sector banks, foreign banks, and regional rural banks. Finally, it covers policies around branch expansion and sectoral allocation targets for priority sector lending.
The document provides an overview of credit risk management operations at Mutual Trust Bank Limited. It discusses the bank's history and background. It then outlines the key activities involved in credit risk management, including credit analysis, credit disbursement, credit monitoring, and credit recovery. Credit analysis involves assessing borrower creditworthiness. Credit disbursement occurs after completing documentation requirements. Credit monitoring helps identify deteriorating loans. And credit recovery directly manages problem accounts.
Working structure of hindu c0 operative bankAnoop Khardk
The document discusses The Co-Operative bank. It notes that a co-operative bank belongs to its members, who are both owners and customers. It aims to encourage thrift and mutual help for small means individuals like farmers and artisans. Co-operative banks are governed by the Co-operative Societies Act of 1904 while commercial banks are regulated by the Banking Regulation Act and Reserve Bank of India. The structure of co-operative banking consists of agricultural and non-agricultural segments that provide short, medium, and long-term credit. Co-operative banks play an important role in providing credit to agriculture and other sectors.
The Basel Committee on Banking Supervision introduced stricter Basel III regulations after the 2008 financial crisis to strengthen banks' capital requirements and promote a more resilient banking sector. The key changes included higher minimum capital requirements, a capital conservation buffer, a countercyclical capital buffer, strengthened capital treatment for trading book exposures and securitizations, more stringent counterparty credit risk rules, and the introduction of a non-risk-based leverage ratio. The regulations aimed to reduce systemic risk, improve risk management practices, and promote a safer banking system overall.
Banks play a critical role in economic development by financing businesses and individuals. In India, banks cater to vast numbers of savers and provide financing needed for corporate and individual needs. Over time, banks have evolved, taking on new forms and services in response to economic changes. Today commercial banks in India accept deposits, provide loans, facilitate payments, support trade and development, and offer additional financial products and services.
Phases of Nationalization Process in India, Objectives of Bank Nationalization, Achievements of Nationalized Banks, Problems and Constraints of Public Sector banks, Note on Non Performing Assets
This document provides an overview of retail banking in India. It discusses key concepts related to retail banking such as what constitutes a bank and retail banking. It outlines the various forms of banking in India. It also discusses the Reserve Bank of India and its role in regulating the banking system and monetary policy. The document then covers public sector banks, private sector banks, regional rural banks, and new entities like payments banks in India. It provides historical information on the nationalization of banks and the evolution of the banking sector in India.
Current and future challenges of banking sector- report on DBBLUniversity of Dhaka
Banks play an important role in a country's economic development by mobilizing savings, facilitating capital formation, and creating credit. They face challenges in Bangladesh like low quality assets, surplus liquidity, lack of good governance, and inadequate risk management. Banks can address these challenges through risk management, credit risk mitigation, training employees, and using new technologies. Dutch-Bangla Bank provides unique products and services like mobile banking, internet banking, and agent banking to create value for customers. However, infrastructure issues still hinder fully online banking in Bangladesh.
The document discusses the nationalization of banks in India. It occurred in three phases from 1955 to 1980 when several large commercial banks were nationalized. The objectives of nationalization included achieving social welfare goals, controlling private monopolies, curbing interlocking directorates, and ensuring bank lending aligned with national priorities. While nationalization led to expansion of branches, deposits, credit and social services, public sector banks now face issues like low profitability, fraud, and challenges in priority sector lending. Overall, nationalization transformed Indian banking but ongoing reforms are still needed to address banks' problems and constraints.
The document provides an overview of banking and finance in India. It discusses the origin of the word "bank" and defines what a bank is. It also covers the evolution of marketing concepts and their application to banking. Marketing and competition in the banking industry are increasing in importance as banks look to segment markets and develop effective marketing strategies to attract customers and remain profitable. New technologies are also transforming how banks provide services to customers.
The document provides an overview of banking and finance in India. It discusses the origin of the word "bank" and defines what a bank is. It also covers the evolution of marketing concepts and their application to banking. Marketing and competition in the banking industry are increasing in importance as banks need to effectively target and segment customers to stay profitable in the face of new competitors. New technologies like electronic banking, phone banking, and online banking are changing how banks interact with and serve customers.
The document provides an overview of the promising future of the banking sector in India. It discusses the growth of the various types of banks in India including nationalized banks, private banks, foreign banks, and cooperative banks. It also summarizes the role of the Reserve Bank of India in controlling monetary policy and managing the country's currency reserves. The banking sector has experienced significant changes in recent decades through the nationalization of banks, entry of private banks, and increased presence of foreign banks which has led to more competitive and customer-friendly services.
The document provides information about the Patiala Central Cooperative Bank Ltd. in Patiala, Punjab. It discusses the bank's establishment in 1949, management structure, branch network of 42 branches, business turnover of over Rs. 107 crore for 2009-2010, sources of funding including share capital, deposits, and borrowings. It also summarizes the bank's lending activities including crop loans, term loans, housing loans, and recovery rates. Financial details like costs, yields, margins, and ratios are presented for evaluation of the bank's performance.
This document provides information about income tax laws in India. It discusses the history of income tax in India and how the current Income Tax Act was established in 1961. It also outlines the different tax slabs and rates for individuals in India based on gender and age. Additionally, it explains the process for computing total income, which includes income from five sources: salaries, house property, business/profession, capital gains, and other sources. Specific provisions for calculating income from salaries and house property are described. The document concludes with a bibliography.
This document summarizes a seminar paper on relations between India and China. It discusses the long cultural and economic ties between the two neighboring countries, noting their shared ancient cultural heritage and influence. It describes relations in ancient times when scholars frequently traveled between the two countries. More recently, it mentions reports of a "secret cyber war" with India developing cyber weapons targeting China. It concludes by summarizing an agreement signed between the two countries to help resolve their long-standing border dispute.
SAARC is a regional intergovernmental organization comprising 8 countries of South Asia established in 1985. The document provides an overview of SAARC including its structure, history, functions, summits, member countries, objectives and agenda for developing a South Asian Economic Union by 2010. It concludes that SAARC countries must cooperate to foster peace, prosperity and implement plans to institutionalize an economic union by 2010 for the benefit of over 1.5 billion people in the region.
This document provides an overview of the South Asian Association for Regional Cooperation (SAARC). It discusses the history and establishment of SAARC in 1985 with 8 member countries. It outlines the structure of SAARC including the countries, agreements, and functions. The key functions of SAARC include promoting welfare, economic growth, and cultural development in South Asia through cooperation in areas like agriculture, rural development, health, and disaster management. It aims to foster mutual understanding and trust between member states.
The document provides an overview of technical analysis and fundamental analysis for evaluating securities. It discusses various technical analysis techniques like charts, support/resistance levels, trends and indicators. It also outlines the different aspects of fundamental analysis including economic, industry and company analysis. Key factors covered in fundamental analysis include barriers to entry, threat of substitution, bargaining power of suppliers/buyers, and financial ratios. The document aims to equip readers with tools and frameworks for conducting equity analysis of stocks.
This document discusses ICICI Bank's entry into microfinance in India. It outlines various models the bank tried, including directly linking self-help groups to branches, outsourcing group formation, and using microfinance institutions as intermediaries. However, these models faced issues with high costs, limited scalability, and constraints on MFI growth. The document raises questions about whether ICICI should modify its existing model or develop a new structure that optimizes capital use, incentives, and long-term scalability to expand microfinance outreach.
This document is a lab file submitted by Sukhchain Aggarwal, a student of B.com, to their professor Harjeet Kaur. It contains an acknowledgement thanking the professors for their guidance. The document then outlines how to create different types of charts in Microsoft Excel, including line charts, bar charts, and pie charts. It provides examples of each chart type using sample data on test scores and the numbers of students in different years. Tables are included showing average, maximum, and minimum values calculated from the data using Excel formulas. Sources consulted for the file are listed in a bibliography.
This document is a lab file submitted by a student named Sukhchain Aggarwal for their degree in commerce. It contains an introduction, declaration, acknowledgements, table of contents, and begins discussing topics related to corporate tax planning in India. The key points covered include:
- An overview of corporate tax planning and how it can help reduce a company's tax liability through proper planning.
- The various heads of income that are considered for taxation: income from house property, business/profession, capital gains, and other sources.
- Methods of tax planning such as planning employee remuneration to ensure deductibility and tax benefits, deducting tax at source in specified cases, and the tax benefits of
The document discusses relations between India and China and the possibility of future conflict between the two countries. It notes that while cultural and economic ties between India and China date back thousands of years, a period of bitterness developed in their relations after World War 2. However, economic cooperation has improved in recent decades as both countries have experienced rapid economic growth. There remains potential for further strengthening relations through cooperation on issues like infrastructure development. The document also speculates on the possibility of future military conflict between the two nuclear-armed neighbors, pointing to India's struggles to develop an independent defense industry and China's alleged use of cyber attacks on Indian strategic targets.
India and China are two large, neighboring countries with long histories and predominantly rural populations. Both countries have seen significant economic growth in recent decades. India's GDP was $4 trillion in the last reported quarter while China's GDP was $10 trillion. Currently, China has the world's largest population at over 1.3 billion people, while India is second largest with over 1.15 billion people. In the past, India and China had periods of both positive and strained relations, but relations have improved in recent decades through increased high-level visits and agreements between the countries' leaders. Both countries now see each other as important economic and geopolitical counterparts.
ICICI Prudential Life Insurance is the 2nd largest life insurance company in India with a customer base of 4 million and total assets exceeding Rs. 100,000 crore. The insurance sector provides greater opportunities after liberalization with several global players emerging. Life insurance premium in India is projected to grow significantly from 1998-99 to 2009-10, indicating enormous potential for growth in the life insurance sector.
The document provides an overview of the insurance industry in India. It discusses the liberalization of the insurance sector that allowed private and foreign companies to enter. There are rules governing Indian and foreign companies, including minimum capital requirements and limits on foreign ownership. Many international insurance companies have formed joint ventures with major Indian companies. The challenges for the insurance sector include developing suitable products, training agents, expanding insurance to lower income groups, and adapting business models for the Indian market.
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1) A declaration by Sukhchain that this is their original work.
2) An acknowledgement thanking their professors Prof. Bikramjit Singh Sandhu and Prof. Rohini Gupta for their guidance.
3) An introduction explaining that a financial plan helps achieve life goals by allocating savings and ensuring long-term security.
4) Explanations of dividend policy models including Walter's model showing how dividends impact share price, and Gordon's model similarly supporting the relevance of regular dividends.
Educated and uneducated challanges for indian education systemSukhchain Aggarwal
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This document provides an overview of bank marketing in India. It discusses the origin and definition of banks, the financial system in India, the evolution of marketing concepts, and how marketing applies specifically to banking. It defines bank marketing as satisfying customers' financial needs more effectively than competitors while achieving organizational objectives. The document also discusses the importance of market research, segmentation, and developing a marketing mix for banking services. It provides examples of market research studies conducted by various Indian banks.
The Bachelor of Commerce (Accounting & Finance) program provides comprehensive training in accounting and finance fields through classroom instruction, projects, presentations, industrial visits and practical training. The 3-year program aims to produce skilled chartered accountants and financial analysts prepared to make proper analyses, decisions and ensure execution of those decisions. The program began in 2010-11 at The Punjab University and the faculty works closely with students to build their knowledge and career skills in a supportive environment.
The document discusses several studies on self-help groups (SHGs) in various contexts:
- Ekott George (2012) analyzed how the Central Bank of Nigeria introduced a "Self-Help Groups Linkage Programme" in 1991 to improve lending under an agricultural credit guarantee scheme by having groups save regularly and take loans from partner banks.
- Codd Helen (2011) explored the benefits of SHGs for women coping with a partner's imprisonment, drawing on perspectives from criminal justice, family theory, and gender studies.
- Krishnan Lata (2010) examined how SHGs in India helped empower underprivileged women economically and socially through microfinance and a sense of unity.
- Eliana La
The document provides information about Axis Bank's products and services. It describes various retail banking facilities like ATMs, internet banking, loans, and cash management services. The cash management services help corporate customers in managing receivables through collection solutions and payments through options like bulk payments. It also discusses managing resources through liquidity management and managing taxes using CBDT and CBEC collection services.
Project report on opening saving account in hdfc bank Sukhchain Aggarwal
HDFC Bank began operations in 1995 and has since grown to over 1,200 branches across India. The bank offers a wide range of personal and commercial banking products and services. Some key milestones include acquiring Times Bank in 2000, expanding its branch network, and receiving numerous awards for innovation, customer service, and corporate social responsibility from publications like Business Today and Forbes. The bank prioritizes technology and aims to provide world-class banking services to its growing customer base in India.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
How to Fix the Import Error in the Odoo 17Celine George
An import error occurs when a program fails to import a module or library, disrupting its execution. In languages like Python, this issue arises when the specified module cannot be found or accessed, hindering the program's functionality. Resolving import errors is crucial for maintaining smooth software operation and uninterrupted development processes.
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In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
Physiology and chemistry of skin and pigmentation, hairs, scalp, lips and nail, Cleansing cream, Lotions, Face powders, Face packs, Lipsticks, Bath products, soaps and baby product,
Preparation and standardization of the following : Tonic, Bleaches, Dentifrices and Mouth washes & Tooth Pastes, Cosmetics for Nails.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
1. Summer Training Project on Banks
Introduction:
Bank plays an important role in the economic development of the country. The entire
commercial and industrial activities are well knitted with the banks. One cannot imagine
the cessation of the banking activities even for a day. There may be an economic crisis in
the country if the banks stop functioning for some days.
In the early days, the banking business was confined to receiving of deposits and lending
of money. But the modern bankers undertake wide variety of functions to assist their
customers. In countries like United Kingdom, banking development preceded industrial
development and in United States of America, the Banking development followed the
industrial development. But in many other countries including India, the development has
almost been simultaneous. The peculiarity of Indian Banking is that the banks were
started, funded and managed by industrialists to enable them get adequate finance for
their businesses or industries, we can see a direct relationship between banks and the
business houses. The Tata group was associated with Central Bank of India; House of
Birla with United Commercial Bank.
It is often said that a banker is one who deals with other people’s money. The term
“Banking” has been understood differently by different people at different times. Even
mills and industrial concerns, which accepted public deposits, were classified as banks
between 1932-1943. According to Sir John Pagget, “no person or body, corporate
otherwise, can be a banker who does not – take deposit accounts; take current accounts;
issue and pay cheques; and collect cheques, crossed and uncrossed, for his customers.”
But a statutory definition was introduced through the Banking Regulation Act, 1949.
Accordingly, “a bank is a company which accepts deposits of money from the public, for
the purpose of lending or investment, repayable on demand or otherwise.” This definition
excludes mere money lending from the banking business. Similarly, mills and industrial
concerns, which accept deposits, are also excluded from the classification of the term
“Banks”. Commercial banks play an important role in directing the affairs of the
economy in various ways. As a matter of fact the operations of commercial banks record
2. the economic pulse of the country. The size and composition of their transactions mirror
the economic happenings in a country. Long back the well-known 19th century
economist David Ricardo had stated that a bank was a dealer or transactor in money.
Banks are thus financial intermediaries collecting “deposits” and lending “loans”. But
now they are not only the purveyors of money but also the creators or manufacturers of
money in a financial system. It is the bank who set the tempo of aggregate economic
activity in any economy. A bank is an institution that deals with money and credit.
Different people understand the meaning of a bank in different ways. For a common man
bank means a storehouse where money is stored; for a businessman it is financial
institution and for a day to day customer it is an institution where he can deposit his
savings. In reality banks are service organization selling banking services. Banks play an
important role in the economy of any country as they hold the savings of the public.
Provide means of payment for goods and services and provide necessary finance for the
development of business and trade. Thus bank is a link in the flow of funds from savers
to the users. Hence they should render an efficient customer service in order to retain the
present customers and also to attract the potential customers.
In the past the banks did not find any attraction in the Indian economy because of the low
level of economic activities and little business prospects. Today we find positive changes
in the national business development policy. Earlier, the moneylenders had a strong hold
over the rural population. This resulted in exploitation of small and marginal savers. The
private sector banks failed in serving the society. This resulted in ht nationalization of 14
commercial banks in 1969. Nationalization of commercial banks paved ways for the
development of Indian economy and channelized financial resources for the upliftment of
weaker sections of the society. In 1980, the government was induced to nationalize more
commercial banks. There was felt that bankers review their services not only as financial
intermediary but also a pacesetter. Adequate financial resources are required for
completing welfare projects. The entrepreneurs need large-scale credit facilities on liberal
terms and conditions, an individual has developed new hopes and aspirations, from banks
and the rural population and backward regions strongly claim their right for a sound and
balanced development. For the accomplishment of all these tasks a rational approach is
essential.
3. MARKETING OF BANKING SERVICES:
Marketing of banking services is concerned with product, place, distribution, pricing and
promotion decisions in the changing, socio-economic and business environment.
It means organizing right activities and programmes at the right place, at the right time, at
a right price with right communication and promotion.
The users of banking services or prospects play a very significant role in the promotion of
overall marketing strategies. The bank marketing activities are concerned with the
designing of product strategies keeping in view the need and requirement of prospects. It
is also related with the place decisions.
It has unique features:
Intangibility
Inseparability
Variability and
Pershibality
Banking is one industry where there are no middlemen serving the customer. The bank
deals with the customers directly. However with liberalization and globalization of the
economy, middlemen are gradually emerging from the banking industry. Foreign banks
and new private banks like City banks, Global Trust Bank and ICICI Bank are offering
their franchise in marketing their services. This has introduced the middlemen in
marketing of banking services.
In banking services, the marketing strategy starts with developing customer profiles by
which the bank can collect and analyze all relevant information on customers. The
preferences and prejudices of the customers are identified with the help of these profiles
and this enables the bank to enhance its marketing activities. In order to satisfy the
customers needs new services may be introduced or the existing services of the bank may
be modified. Customer satisfaction prays an important role in banking services.
4. BANKING STRUCTURE IN INDIA:
Reserve bank is the Central Banking Authority in India. All the activities of banks and
non-finance companies are regulated and controlled by RBI through the credit and
monetary policy.
Commercial and Co-operative Banks which are scheduled banks are included in the
second schedule to the Banking Regulation Act. They are entitled to some facilities with
RBI.
SBI and subsidiaries
Nationalized Banks
Regional Rural Banks
Old Private Sector Banks
New Private Sector Banks
(A) PUBLIC SECTOR BANKS
(B) PRIVATE SECTOR BANKS
5. RBI NORMS FOR NEW BANKS
The RBI came our with new guideline for setting up of new banks in Jan 2001.
The following are the guidelines:
Minimum Net worth requirement for private banks Rs.200 crores.
NBFCs of high net-worth and good track record to convert themselves into regular banks.
It is necessary for promoters to have minimum net-worth of Rs. 200 crores to set up a
bank by they should raise it to Rs. 300 crores in three years. They should have NPAs of
less than 5% and capital adequacy requirement (CAR) above 12%. Triple credit rating is
also needed.Corporates will not be permitted to set up banks irrespective of their net-
worth. New banks cannot set up a subsidiary or mutual fund during the initial three years
The newly licensed bank has to observe all existing requirements of priority sector.
Additionally they should commit to having 25% of their branches in rural and semi urban
areas.NRIs are allowed to pick up their equity share upto 40% of the total.
The Users of Banking Services
The users/customers constitute a place of outstanding significance. The line of services,
the planning and development services, the offering of services, the pricing strategies or
the interest charged for the services made available and the promotional strategies depend
substantially upon the nature type of users using the services of the organization. It is
against the background that a study of different categories of users is found significant.
The emerging trends in the level of expectation affect the formulation of marketing mix.
Innovative efforts become essential the moment we find a change in the level of
expectations. Yesterday the users didn’t expect fast decent services but today they expect.
Yesterday, the consumer financing was not so much important but. Today the banks
appear to think about the same on priority basis. These changes make it clear that the
level of expectation containing dynamism vis-à-vis influence the marketing decision.
We find two types of customers using the services of banks, such as general Customers
and the industrial customer as shown below:
6. General user: Person having an account in the bank and using the banking facilities at
the terms and condition fixed by a bank are know as general user of the banking services
they are found small sized customer
Industrial user: The industrialist, entrepreneurs having an account in the bank and using
the credit facilities and other services for the establishment and expansion of their
business are known as industrial users. They are found large sized
Prospects: It is also essential to clarify the term,” prospects! The general or industrial
prospects do not use the banking services at present but they have the potential to become
customers if induced or motivated in a right fashion. The aforesaid facts make it clear that
the banking organization transact with different types of customers. The behavioral
profile of the two of customers can’t be identical. Both the customer is found important to
marketer and their professional excellence is coiled in the essence of studying and
understanding the customer in a right perspective. The marketing resources
instrumentalist the process of transforming the prospect into customers /users.
CONTROL ON BANKS:
Following the recommendations of Narasimham Committee on Financial reforms, the
regulatory framework for banks by RBI was liberalized in stages. The licensing of branch
location or branch expansion or contraction was removed. Some controls on deposits
interest rates and lending rates were removed by stages. In order to free the banks
precommitted funds, the cash reserve ratio and the statutory ratio were reduced
Refinance by RBI was also rationalized and only Export credit finance was provided.
Refinance against Treasury bills and Government Securities etc. was discontinued.
Interest rate charges were also made more frequently to suit the conditions in the
economy. Government Securities were issued at market determined rates.
7. BANKS SOURCES AND USE OF FUNDS:
Sources:
1. Deposits from public:
Saving deposits.
Current Deposits.
Fixed deposits.
2.Borrowings from banks:
Inter-bank borrowings and
Inter-bank deposits.
3. Borrowings from RBI
4. Borrowings from financial institutions.
5. Borrowings from abroad.
6. Paid-up Capital/Reserves.
Uses:
Term loans.
Overdraft.
Cash credit.
Loans and advances.
Packing credit
Bill Purchase and Discounting.
Inland and foreign Investment in Approved Securities and other Shares and Securities.
Current accounts do not carry any interest. They are generally deposits from Corporates
and Business Executives. Overdraft facility is given to Current Account holders. Savings
Accounts are for individuals, Hindu Undivided Families, partnership etc. they earn a
modest rate of interest but do not carry any overdraft facility. Both the accounts get credit
card facility and 24 hour banking and electronic mode of transfer.
8. REFORMS IN BANKING SECTOR:
Banks are allowed to access the capital market funds directly.
SCR and CRR cut down drastically, with the result that banks are left with larger
discretionary funds for lending on commercial lines and improve profitability of banks.
Deregulation of interest rate both in respect of deposits and advances.
Capital Adequacy income Recognition and provision for bad and doubtful debts.
Improving the loan delivery system by increasing the loan component of Maximum
Permissible Bank Finance (MPBA) which will replace the cash credit system.
Greater autonomy for PSBs to operate on Commercial lines and increase their
profitability.
MARKETING MIX FOR THE BANKING SERVICES
The formulation of marketing mix for the banking services is the prime responsibility of
the bank professional who based on their expertise and excellence attempt to market the
services and scheme profitably. The innovative efforts of the professionals become
essentials to make the services internationally competitive. it is in this context that we
talk about the formulation of marketing mix .
The need and requirements, the like and dislike, the preferences, the attitudes the
expectation and the life style cant remain static. There are a number of factors influencing
The process of change. Today we sell credibility and therefore a basic change in the
perception of marketing is quite natural. This is essential for fulfilling the increasing level
of expectation and even for increasing the market share. Innovation makes the way for
perfection which help you substantially in maximizing profitability and establishing
leadership .The bank professional having world class excellence make possible frequency
in the innovation process which simplify their task of selling more but spending less. It is
against this background that we go through the formulation process. The marketing mix,
a combination of different submixes, has been discussed and deliberated by a number of
experts. The four submixes of the marketing mix ,such as product mix the promotion
mix, and the place mix no doubt , are found significant even to the banking organization
but in addition to the traditional combination of recipes, the marketing experts have also
9. been talking about some more mixes for getting the best result. The “Peoples” as
submixes is now found getting a new place in the management of marketing mix. It is
right to mention that quality of people /employees serving an organization assumes a
place of outstanding significance. This requires a strong emphasis on the development of
personally-committed, value-based, efficient employees who contribute substantially to
the process of making the efforts cost effective. In addition, we also find some of the
marketing experts talking about a new mix, i.e. physical appearance. This draws our
attention on the physical make up of the employees serving an organization. To be more
specific in the service generating organization, we find this dimension impact since the
employees looking impressive, smart and having aesthetic sense are found more effective
in attracting the customers. In the corporate world, the personal care dimension thus
becomes important. The employees are supposed to be well dressed, smart and active.
Beside, we also find emphasis on “Process” which gravitates our attention on the way of
offering the services. It is only not sufficient that you promise quality services. It is much
more impact generating that your promises reach to the to the ultimate user without any
distortion. This makes a strong advocacy in favor of decent behavior of the employees
responsible for offering the services. The marketing experts also talk about Empathy in
the very context which focuses on sharing the mental pressure or diffusing the mental
tension of your customer by using soft word. This necessitates an in depth knowledge of
behavior management. All the mixes need a detailed analysis. The banking organization
of late, face a number of challenges and the organization assigning an overriding priority
to the formulation processes get a success. The formulating of marketing mix is just like
the combination of ingredients, spices in the cooking process.
.
THE PRODUCT
The banks primarily deal in services and therefore, the formulation of product mix is
required to be in the face of changing business environment condition. Of course the
public sector commercial banks have launched a number of policies and programmers for
the development of backward regions and welfare of the weaker section of the society but
at same time it is also right to mention that their development-oriented welfare
10. programmes are not optional to the national socio-economic requirements. A
proportionate contraction in the number of customer is found affecting the business of
public sector commercial banks. The changing psychology, the increasing expectation,
the rising income, the changing lifestyle, the increasing domination of foreign banks and
changing needs and requirements of customer at large make it essential that the innovate
their service mix and make them of world class. The development of new generic
product, especially when the business environment is regulated found a difficult task.
However, it is pertinent that banks formulate a package in tune with the changing
business condition. Against this background we find it significant that the banking
organization minify, magnify, combine and modify their service mix.
In the formulation of services mix, the banks can follow two guidelines, first is
related to the processing of product to market needs and the second is concerned with the
processing of market needs to product. In the first process, the needs of the target
segment are anticipated and visualized and therefore, we expect the process likely to be
productive. In the second process, the banks react to the expressed needs and therefore
we consider it reactive. It is essential that every product is measured up to the accepted
technical standards. This is due to the fact that no consumer would buy a product which
contain technical faults. Technical perfection in service is meant prompt delivery, quick
disposal, and presentation of right facts and figures, right filing, proper documentation or
so. If computer start disobeying the command and the customer get wrong fats, the use of
technology would be a minus point, and you don’t have any excuse for your faults.
Marketing aims not only offering but also at creating/innovating the
services/schemes found new to the competitors vis-à-vis to the customers. The enhanced
customer patronage would be a reward to the bank. The additional attractions, the product
attractiveness would help you in many ways. This makes it essential that the banking
organizational are sincere to the innovation process and try to enrich their peripheral
services much earlier than the competitors. The product portfolio of banks. While
formulating the services mix, it is also pertinent that the bank professional make possible
a fair synchronization of core and peripheral services. To be more specific, the peripheral
services need an intensive care since the core services are found by and large the same.
Innovating the peripheral services thus appears to be an important functional
11. responsibility of marketing professionals. We can t deny the fact that if the foreign banks
have been getting a positive response; the credibility goes to their innovative peripheral
services. Thus the formulation of product mix is found to be a difficult task that requires
world class professionalism.
Promotion mix
In the formulation of marketing mix, the bank professionals are also supposed to blend
the promotion mix which different component of promotion, such as advertising,
publicity, sales promotion, word of mouth promotion, personal selling and telemarketing
are given due weight age. The different component of promotion help bank professional
in promoting the banking business.
Advertising:
We are well aware of the fact that advertising is a paid form of communication. Like
other organizations, the banking organization also use this component of the promotion
mix with the motto of informing, sensing and persuading the customers. While
advertising, it is instrumentality helps bank organizations both at micro and macro levels.
Finalizing the budget:
This is related to the formulation of a budget for advertisement. The bank professional,
senior executive and even the policy planners are found involved in the process. The
formulation of a sound budget is essential to remove the financial constraint in the
process. The business of a bank determines the scale of advertisement budget. In
addition, the intensity of competition also plays a decisive role since in a majority of the
cases; we find an increase in the budget due to a change in the competitor’s strategies.
Selecting a suitable vehicle:
Another task at apex level of the bank is to select a suitable vehicle for traveling the
messages. There are number of devices to advertise, such as broadcast media, telecast
media and the print media. For promoting the banking business, the print media is found
economic as well as effective. The messages, appeals can be presented in a very effective
way.
Making possible creativity:In advertising, we find creativity playing a decisive role in
making the process effective. The advertising professionals bear the responsibility of
12. making the appeal, slogans, and messages more creative. The banking organization
should seek the cooperation of leading advertising professional for that very purpose. By
creativity, we mean making the advertisement programmes distinct to the competitive
organizations which are active in influencing the impulse of customer and successful in
informing and sensing the customer. This requires in depth knowledge of the receiving
capacity of the target market for which the advertisement are designed.
Testing the effectiveness:
It is not only sufficient that we advertise. It bears an analogue significance that our
advertisements are effective in influencing the impulse of customer by energizing
persuasion. For making the process effective, it is essential that we test the effectiveness
before launching of the commercial advertisement. The life expectancy if increased
makes advertisement are found productive.
Instrumentality of branch manager:
At micro level, a branch manager bear the responsibility of advertising locally in his/her
command area so that the messages, appeals reach to the target customers of the
command area. Of course we find a budget for advertisement at the apex level but the
business of a particular branch is considerably influenced by the local advertisements. If
we talk about the cause-related marketing, it is the instrumentality of branch manager that
makes possible the identification of local events, moments and make advertisements
condition-oriented.
Characters and themes:
At the apex, it is also important that while advertising, the senior executive watch the
process minutely and select events, characters having a regional orientation. The popular
characters and sensational moments are likely to be impact generating. The theme for
appeals and messages also need due attention. Of course, they have a legitimate right of
advertising but it is not meant that like the goods manufacturing organization, the service
generating organization also start making invasions on our culture. We need to regulate a
bias to gender, profession, region or so.
The aforesaid facts make it clear that while advertising, the banks need to assign due
weight age to the limitation failing which the advertisements would outlive their utility.
We consider advertisement the most sensitive component of the promotion mix but in a
13. majority of the cases, we find misuse of this tool. In addition to other negative effects the
unproductive advertisement would also increase the financial burden therefore utmost
precaution are needed to make the entire process productive. The professional bear the
responsibility of determining the share of this component to the promotion mix since we
can t be proportionate
MARKET SEGMENTATION:
In banking services, the banks are expected to satisfy rural customers, urban customer,
high-earning and low-earning, small-scale and large-scale entrepreneurs and so on.
Hence segmentation of market is considered to be important.
According to Philip kotler, market segmentation is the sub-division of market into
homogenous sub-sets of customers where any sub-sets may conceivably be selected on a
market target to be reached with a distinct marketing mix.
INPORTANCE OF SEGMENTATION IN BANKING SERVICES:
Since the banks have to deal with different types of customers from different fields and
localities, Banking Services need segmentation.
The purchasing power of potential customers is different. In respect of term deposits of
different maturities or deposit schemes the potential customers are required to be
influenced.
These potential customers may be located in some packets of the urban areas.
In the Indian setting we find the emergence of rural market which is wider. Here it is
necessary that that segmentation should be done in tune with the changing socio-
economic conditions of the rural users
Therefore market segmentation is important not only from the viewpoint of expanding
the market but also with the motto of satisfying the user. If the marketing decisions of the
banks are on the basis of micro-level market segment, then only a fine blending of service
and profit elements are possible.
14. Major Players
Nationalized Banks:
The Government of India with effect from 19 July 1969 nationalized 14 major Indian
Banks, each with an aggregate deposit of Rs-50 crores or more with a view to “to serve
better the needs of development of the economy, in conformity with National Priorities
and Objectives.
The following were considered to be the compelling reasons for the Bank
Nationalization:
Concentration of wealth and economic power in industrialists and businessmen;
Branch expansion was confined only to urban areas with rural areas being neglected;
Sectors like agriculture, small scale industries and the other deserving sectors were
outside the purview of lending operations of the bank;
Various malpractices indulged in by banks under private ownership and management to
favor big businessmen and industrialists and
To give a re-orientation in attitude and outlook of the bankers so as to make them
conscious of social objectives and to make them embrace social banking.
The ordinance through which the Banks were nationalized was struck down by Supreme
Court as unconstitutional and invalid, on grounds of “hostile discrimination” and
“illusory compensation”. So the Government addressed these lacunae and Banking
Companies {Acquisition and Transfer of Undertakings} Act, 1970 was introduced.
The fourteen banks covered under this Act of Nationalization were
Central Bank of India Ltd.
Bank of India Ltd.
Punjab National Bank Ltd.
Bank of Baroda Ltd.
United Commercial Bank Ltd.
Canara Bank Ltd.
United Bank of India Ltd.
Dena Bank Ltd.
15. Syndicate Bank Ltd.
Union Bank of India Ltd.
Allahabad Bank Ltd.
Indian Bank Ltd.
Bank of Maharashtra Ltd.
Indian Overseas Bank Ltd.
Eleven years after nationalization of 14 commercial banks the Government on April 15,
1980 took over six schedule Commercial Banks each with demand and time liabilities
exceeding Rs-200 crores through an ordinance issued by the President. These banks were
1. Andhra Bank Ltd.
Corporation Bank Ltd.
New Bank of India Ltd.
Oriental Bank of Commerce Ltd.
Punjab and Sind Bank Ltd.
Vijaya Bank Ltd.
Of these twenty banks nationalized in two installments, New Bank of India got merged
with Punjab National Bank in September 1993. Thus as of today, there are 19
nationalized banks operating in our country.
Thus, as on date there are totally 19 nationalized banks existing as on date. Nationalized
banks have been permitted to offer their equity shares to the public to the extent of 49%
of their capital. Accordingly, the following nationlised banks offered shares to the public -
1. Corporation Bank
Bank of India
Bank of Baroda
Oriental Bank of Commerce
Dena Bank
Apart from the above, the following banks coming under the State Bank of India Group,
have also offered shares to the public –
State Bank of India
State Bank of India
State Bank of Travancore
16. State Bank of Bikaner and Jaipur
As of September’05, nationalised banks contribute 55% of the aggregate deposits of the
Banking System. The contribution of the nationalised banks in the domain of credit of the
entire Banking System is to the extent of 48.5%.
Similarly, as of September’05, State Bank of India and its associates, contribute to 25%
of the aggregate deposits of the Banking System and 28.4% of the aggregate credit of the
banking system.
2. Private Sector Bank:
By private sector banks we mean those banks where equity is held by private
shareholders that is to say there is no government holding of the equity shares.
This category of banks also occupies a significant position in the Banking Scenario.
There are already 25 private sector banks operating in our country for quite some time.
These banks are listed as under-
The Vysya Bank Ltd.
The Federal Bank Ltd.
The Jammu & Kashmir Bank Ltd.
Bank of Rajasthan Ltd.
Karnataka Bank Ltd.
The South Indian Bank Ltd.
The United Western Bank Ltd.
Bank of Madura Ltd.
The Catholic Syrian Bank Ltd.
The Karur Vysya Bank Ltd.
Tamilnad Mercantile Bank Ltd.
The Lakshmi Vilas Bank Ltd.
The Sangli Bank Ltd.
The Dhanalakshmi Bank Ltd.
Development Credit Bank Ltd.
Bharat Overseas Bank Ltd.
City Union Bank Ltd.
17. The Benares State Bank Ltd.
The Nedungadi Bank Ltd.
Lord Krishna Bank Ltd.
Bareily Corporation Bank Ltd.
Nainital Bank Ltd.
The Ratnakar Bank Ltd.
The Ganesh Bank of Kurundwad Ltd.
SBI Comm. & Int. Bank Ltd.
There has been a growing presence of private sector banks, more so, after the
introduction of financial sector reforms from 1991. Six new private banks listed as under
were issued licenses in 1994-95 and commenced operations during the same year.
UTI Bank Ltd.
IndusInd Bank Ltd.
ICICI Banking Corporation Ltd.
Global Trust Bank Ltd.
Centurion Bank Ltd.
HDFC Bank Ltd.
Again, during 1995-96, the following three banks were issued the licenses and
commenced their operations:
Times Bank Ltd.
Bank of Punjab Ltd.
IDBI Bank Ltd.
Thus, apart from the twenty-five old private sector banks (already listed above), we have
got nine new private sector banks.
During the period Times Bank ltd. was merged with HDFC bank. However The
Nedungadi Bank Ltd. was merged with one of the nationalize bank i.e. Andra Bank Ltd.
Private sector banks have been rapidly increasing their presence in the recent times and
offering a variety of newer services to the customers and posing a stiff competition to the
group of public sector banks.
18. 3. Foreign Banks:
The other important segment of commercial banking system is that of foreign banks.
Foreign Banks, being banks registered and headquartered in Overseas Centres, have
opened branches in our country on a continual basis. Even in the initial decades of the
century, we had the presence of foreign banks in our country albeit in a smaller way.
Here again, the presence of foreign banks has rapidly improved after 199, after the advent
of the financial sector reforms.
The increasing presence of foreign banks in our country has accentuated the competition
in the Banking Industry bringing in the process newer products as well as resulting in
improved customer service. They are employing and enhancing the impact of technology
for the growth of business volumes along with sophisticated service delivery mechanism
to the clientele.
As per the present policy measures in force, all the foreign banks together cannot have
more than 15% of the total business of the banking industry as a whole.
ADDITIONAL SERVICES
AGENCY SERVICES
In order to facilitate the customers, the banks accept standing instructions from their
customers either to make payments on their behalf or collect money or effect transfer of
money. The relationship between the banker and customer, in this case, is that of
principal and agent. The customer directs the banker as to what he should do. The banker
acts according to his direction. In case of any loss, the customer alone will bear this as his
directions are carries out by the banker. The banker will charge the customer for doing
such services. Some of the agency functions are as follows:
The banker pays rent, insurance premium, subscription etc. on behalf of the customer as
per his prior instructions on the appropriate dates. The payment will be made from the
customer’s account.
19. In the same way the bank undertakes to collect such income on behalf of the customer.
The banker also collects cheques/bills etc. on behalf of the customer.
In India, we do not have banks exclusively dealing in foreign exchange. The commercial
banks, in addition to their normal functions, undertake the business in foreign exchange.
They buy and sell foreign exchange currencies as per the regulations. They also discount
the foreign exchange bills.
The financial stability of the bank and complete confidence of the customers, dealing
with it has made the bank a natural and trusted friend for undertaking executorship and
trusteeship. In addition to this, an increasing reluctance of customers to trust individuals,
combined with insufficient knowledge of law on their part has led commercial banks to
act as trustees/executors to their customers. As a trustee, the banker takes care of the
management trust and administers the trust funds effectively. The functions undertaken
under the executor/trustee services are as follows:
To handle the investments/estates during the life time of the owner; and distribute them
according to the terms of the will after his death; To manage the property during the
owner’s life time and after his death on behalf of his dependants through their life time or
till such property is distributed/ applied according to the instructions of the deceased; To
manage movables and also act as a guardian of a minor’s property; Guide customers in
filing estate duty returns and appear before Estate Duty Authorities when called upon to
do so; Administration of public trusts; Acting as trustees for debentureholders.
GENERAL UTILITY SERVICES
A number of incidental functions are carried on by the commercial banks to help his
customers.
Safe Custody of valuables:
20. One of the important services which a bank renders to his customers is that of keeping
valuables of customers is that of keeping valuables of customers in safe custody
including jewellery, share certificates, insurance policy, title deeds, gold ornaments, ‘will’
etc. while banker accepts anything for safe custody he accepts them under duly sealed
box, and banker passes receipt for such deposits. The safe deposit receipt has to be
returned duly discharged when the banker redelivers the boxed/pocket. The relationship
between banker and customer is that of a bailor and bailee. The contract entered into is a
contract of ‘Bailment’. In present day banking, bankers are offering locker facility, which
is superior, and hence becoming popular. However, at centers where locker facility is still
not available the articles in safe custody are a service of great value to customers.
Under this facility, banker’s responsibility is higher, because if there is any damage to
property bailed he would be responsible. This facility is used by bankers themselves to
deposit their branch ‘duplicate keys’ in some other bank/branch. In the event of any loss
of keys or other problem, the duplicate keys can be withdrawn to ensure smooth
functioning of the branch.
The articles in safe custody facility is utilized by the people for depositing their “will”,
their last wish as to how to deal with their property.
Except in States of MP and UP in all other states probate or letters of administration will
be necessary to deliver the articles.
Safe Deposit Locker Facilities:
Many banks offer safe deposit locker facility. Under the arrangement, a customer hires a
locker cabinet, which is kept by the bank for the purpose. Lockers are generally kept in
strong room, which is a water proof/ fireproof place. There are different sizes of lockers
like small, medium, large and extra large, etc. The locker rent is recovered for a year in
advance and depends on the size of the locker.
A locker hirer has to sign an ‘agreement’ on Rs-10/- stamp paper with the bank.
Thereafter, a locker is allotted to him. The locker has two keys. The ‘master key’ is kept
by the bank whereas the other key is given to the customer. There is no duplicate key
available for the customer. In case, it is lost, the locker has to be broken open at the cost
of the customer.
21. The locker is a most essential facility in cities and urban places and even in villages for
safe keeping of valuables. The locker system is superior to safe custody system because
customer can keep anything the customer chooses to keep, he need not inform banker
about the contents. It can be operated on locker, no need to seal, pack the contents etc. the
charges are very nominal. Small locker with SBI costs Rs-100/- per annum.A locker can
be opened jointly and access to the locker can be had by ‘either’ of the joint account
holder.
If there is defaults in payment of locker, persistently, say more than 3 years, then bank
can give notice to locker hirer and if he does not respond, with due notice break open the
locker in presence of witnesses. The banker is at liberty to recover its locker rent from the
proceeds of contents. The relationship of the banker and customer in the safe deposit
locker is that of licensor and licensee. While surrendering the locker, the original locker
holder has to come personally to surrender the key. At the time of allowing access to the
locker, the hirer has to sign ‘access register’ his signature is verified and thereafter access
to locker is allowed.
Telebanking:
This is a secure, fast & convenient way to obtain a range of services by using a telephone
without visiting the branch e.g. information on account, conduct of selected transactions,
report loss of ATM card, order a cheque book, draft etc.
What are the services available under "Telebanking"?
Online balance inquiry.
Details of transactions
1. Last five transactions
2. Transactions from a recent date
Request for service
1. Cheque book request
2. Funds transfer request
3. Drafts request
22. Request for statement of account
1. From the date of last statement
2. From a specific date Change on PIN...etc.
The facility is protected with two level passwords in addition to the Customer's account
number, which is his login ID. The Customer should be careful to maintain secrecy of his
password & PIN number.
All individual customers in Personal segment except those whose accounts are operated
through joint signature and whose accounts are not running satisfactorily, can avail the
facility. Even the minors who are allowed to open and operate account can seek to avail
the facility.
The Customer is required to apply for the facility in the application form prescribed for
the purpose. After scrutiny, the Branch will register the name & allot the PIN &
Transaction password, which the Customer will change on his first log in for a number of
his choice. Presently the facility is available in select fully computerized branches. The
service is provided 'free of charge'.
23. TYPES OF ACCOUNTS
FIXED DEPOSITS
Fixed deposits are made by the customers for a specified period, ranging from 15 days to
5 years or more, the rate of interest ranges from ½% to 11%. The longer the period of
deposit, higher is the rate of interest. The depositor is assured of the safety of the funds,
apart from higher returns. The depositor, as per the terms, agrees not withdraw the
amount earlier. In acknowledgement of the fixed deposit, the customer is given a receipt
called fixed deposit receipt popularly known as ‘FDR’ in the business circle. The rules
governing fixed deposits are printed on the reverse side of the FDR.
At the end of the term, the customer may either withdraw the amount along with interest
or renew the deposit for a further period at this convenience. Since the customer would
withdraw the funds at the end of the period, the banker can lend the money confidently
without keeping any reserve to meet the withdrawals. In case the customer needs money
prior to the due date, although he may not be able to withdraw from the Fixed Deposit, he
can obtain a loan from the bank on the strength of the Fixed Deposit Receipt. The banker
charges an interest for this loan.
RECURRING DEPOSIT ACCOUNT
This is a type of account, which is a combination of the characters of saving bank account
and fixed deposit accounts. In this account, the depositors can pay a fixed sum of money
every month for various periods, say 12 to 120 months. This account is normally opened
by salaried persons or individuals who get regular income. Deposits may be paid in easy
installments. The commercial banks have introduced the Recurring Deposit Scheme to
enable the small depositors to save for a predetermined period. In one way it may be
viewed as compulsory savings to enable them to build up sizeable amount. The bankers
allow compound rate of interest. In case the depositor needs the money even before the
stipulated period he can get back the money. In such cases, the banker may pay a lesser
rate of interest than it was agreed upon.
Saving Bank Account: -
As the name indicates, the purpose of opening a savings bank account is to save money to
meet the future contingencies. A person is allowed to open a savings bank account
24. provided he is properly introduced. The customer is expected to maintain a minimum
balance of rs-20/- in his account. Nowadays, any savings bank account holder who agrees
to maintain a minimum balance of Rs-500/- in his account may make use of the cheque
facilities. The interest is allowed at the rate of 5% on the minimum balance as in the case
of any date as stipulated and the last day of each calendar month. The rate allowed on
savings bank account is 5% p.a. there are some restrictions relating to the number and
amount of withdrawals. The number of withdrawals are generally restricted 100 per year
and the total amount of withdrawals at any time should not exceed Rs-10000 or 10% of
the balance whichever is higher. But if he wants to withdrawal large sum, he should give
prior notice to the banker.
Saving Bank Accounts are usually opened in the name of individuals. No saving bank
account is opened for a trading company or a business concern whether such a concern is
a proprietary concern, partnership firm, a company or association.
Nowadays, a banker facilitates the collection of cheques drawn in the name of the
customer through the savings bank account. However, he does not collect third party
cheques. A third party cheque is one, which is drawn in the name of a person other than
the customer.
Current Account: -
A businessman for the purpose of his business normally opens a current account. He
should always maintain such minimum balance in the account. A banker should be
doubly cautious to get an introduction letter from the customer at the time of opening
such account. He should also see that such introductory letters are verified, due to the
following reasons: -
(1) The RBI has given a direction that the prospective customers should produce
Introductory letter at the time of opening the account;
(2) The banker should ascertain the bonafides of the customer;
(3) Since third party cheques are collected through the account, there is a chance for fraud
by unscrupulous elements;
(4) Since overdraft and cash credit facilities are available, the banker should not be
exploited by an unscrupulous customer.
25. In a current account the banker is obliged to honour the cheques drawn on him if there is
sufficient balance to his credit. One of the peculiar features of the current account is that
the banker does not allow any interest on the deposits whatever the balance is. However,
if the customer overdraws the account he may have to pay interest to the banker.
Overdraft may be granted for a temporary period of one moth or more depending upon
the requirements of a customer. Cash credit facility is also available in the current
account. Bankers allow certain special facilities such as free collection of outstation
cheques, issue of demand drafts and mail transfers without any extra charges.
TYPES OF MICELLANEOUS ACCOUNTS
(1) Pigmy/Janata Deposits: -
(2) Insurance Linked Deposits: -
(3) People Saving Plan: -
(4) Daily Saving Schemes: -
Minor’s Savings: -
Annuity /Retiring Scheme: -
Farmer’s Deposit Scheme:-
Monthly Income Plan: -
(9) Cash Certificate Scheme: -
(10) Housing Deposit Scheme: -
(11) Amudha Surabi Deposit Scheme: -
VARIOUS TYPES OF CARDS
Various types of Cards:
Following types of cards are available in India:
Credit Card:
26. The credit card is an instrument, which enables the cardholder to obtain goods or services
from shops and establishments where arrangements have been made by issuing bank to
reimburse them. The goods and services are bought by the cardholders from shops and
establishments upon presentation of card instead of cash or cheque for settlement of their
bills up of specified amount fixed the card-issuing bank. Such bills are sent for settlement
by the shops and establishments to the card-issuing bank, monthly or periodically for
obtaining reimbursement. Card issuing bank upon receipt of such bills from shops and
establishments for reimbursement settle it by debiting the customer’s account. Thus
cardholder gets credit for 30 to 45 days free of cost.
Cash Card:
Certain banks issue Cash Cards in addition to Credit Card which enable holder of card to
draw certain amount of cash from the branch office, of the card issuing bank or now from
ATM installed by the bank at various places.
Smart Card:
This type of cards is also known as Chip Card. With the increasing computerized
network, banks extend the Chip Card facilities to the select customers. The Smart Card is
a microcomputer chip giving its intelligence and a memory capacity much more than
usual magnetic cards. Smart card has much computing power of Personal Computers. It
has storage capacity of all types of personal data of the cardholder. Smart Card can be
used with a Personal Identification Number (PIN). The Smart Card can be programmed
to do any task within its processing power and memory capacity. It is a Data Carrier
Identity Card and also meant for using for monetary transactions like payment of hotel
bills, electricity bills.
Co-Branded Cards:
This type of credit cards are those which banks promotes jointly with another financial
agencies, like Master Card, BOB Card, Diners Card, , Bank of Taj Card India BOI Card.
These types of Cards are used with other non-financial institutions, which enables the
cardholder to claim discount in price for the use of card.
Debit Card:
Debit Card is also known as a Payment Card used to obtain cash, goods and services
automatically debiting the payments to the cardholder’s bank account immediately.
27. Charge Card:
Charge Card is a type of card in which card holder is required to settle the outstanding in
full at the end of a short period within 25-30 days to the extent of certain amount say Rs-
5000/- to Rs-10000/- at one time.
PLACE
Selection of suitable place in an important element in the overall marketing decision. The
locational decision helps in activation the business. The means searching a suitable point
for offering the banking services or location the branch at a sensitive point.
Location of bank at places accessible to the actual and potential users will bring
momentum in the banking activities while making a place decision the availability of
transport communication, electricity and other necessary facilities for the smooth
functioning of the bank should be considered.
Neat and clean premises attract people. Of late the banks have been facing the problems
of robbery. It is essential that branches are located at the points where security
arrangements can be made available within a few minutes
The banks have to be careful that the General of Industrial users of services coming to the
banks return safely.
In order to serve all customers segment round the clock the banks have introduced ATM,
tele-banking, home-banking and now Inter.net banking
Nationalised Banks:
Parameter: Nationalised
banks
SBI and its
Associates
No of banks( as march’06) 19 8
No of branches 71,398 52,995
Amount of deposits (as 6,37,512 3,13,163 crores
28. march’05) crores
Amount of advances 2,28,644
crores
1,24,419 crores
Private Sector Bank:
The size of the private sector banks in our country as on date is furnished hereunder. (As
at June’06)
Number of Private Sector Banks in operation 35
Number of Bank branches of Private Sector
Banks
4,473
Amount of Deposits ( as at march’05) 31,692 crores
Amount of Advances ( as at march’05) 91,588 crores
Private sector banks have been rapidly increasing their presence in the recent times and
offering a variety of newer services to the customers and posing a stiff competition to the
group of public sector banks.
PROMOTION
Banking services can be promoted in two ways:
Personal promotion i.e. person to person, person to persons, persons to persons and
conferences.
Impersonal promotion i.e. advertising, publicity and sales promotion measures.
Personal promotion hips in creating impulse buying and generates selling with the help of
impersonal communication.
With the help of different promotional tools a manager can transform a potential
customer into actual customer.
In banking service the success of personal selling depends on the behavior and activities
of the bankers
Today Advertising has occupied a place of significance. It is used for mass-
communication. Advertisement can serve the purpose if it is well read, heard, believed,
remembered and acted upon by the potential users or target audience. It can create
awareness and bring about attitudinal change in the target market.
29. Publicity is different to advertising. It is an editorial comment about the ideas, products
and organizations. It is an important part of public relation. Today when we find that
social welfare to be an important part of banking services, the publicity measures need
due care.
Displays, show, exhibitions, gifts are some of the important measures to stimulate the
user action and bankers effectiveness. Word of mouth is the best form of publicity
In order to lure the customers to buy the services of the bank, bank often tend to provide
services which are beneficial to customers. Shown below are the special services offered
to customers other then the regulatory services.
Excellent service and lower costs. A quick survey of similar schemes available
elsewhere and find out that SBI Car Loans for new and old vehicles offer:
Lowest interest rates
Longer repayment period of upto 84 months.
No processing charges.
No hidden costs or administrative charges.
Free Personal Accident Insurance
No advance EMIs. (Some Banks/companies ask to pay one or more EMIs at the time of
disbursement of loan, thereby effectively reducing loan amount.)
Complete transparency: SBI levy interest on daily reducing balance method. When
customer pay one installment, the interest is automatically calculated on the reduced
balance thereafter. When one pay interest on an annual reducing balance, as charged by
many other companies/banks, the interest amount for the coming year is determined on
the amount outstanding at the beginning of the year. Customer continues to pay interest
even on the amounts he repays during the year.
PROCESS
The process involves all the activities of banking service from the product conception
stage till it’s marketing at all branch level. It also includes the accounting procedure.
Previously banks were more activity oriented by due to the technological advances they
have shifted their approach to customer oriented service delivery.
30. The improvement in the process comes from reengineering of the process in order to
reduce delays in processing the transaction e.g. loan applications, cheques clearing etc.
The products and the seller together constitute the banking product. Bank products cannot
be separated from people who market them. While designing the product due care should
to given to both the product and the seller. A well conceived product could fail it it is not
implemented properly. The bank products can be implemented only through people.
Banks should adopt internal marketing in order to make the whole business customer-
oriented. The bank products should be marketed to the employees first before they are
marketed to customers.
The corporate mission must be communicated effectively to all the employees by the top
level management. The recruits should not only be conversant with all the aspects of
banking but also have the skill for social interaction and tolerance for inter-personal
contact. Most of the banks are moving towards technology-based banking. But still
matters like investment banking deposit, mobilization, and credit evaluation, etc. can be
done through persona contact. The process involves all the activities of banking service
from the product conception stage till it’s marketing at all branch level. It also includes
the accounting procedure. Previously banks were more activity oriented by due to the
technological advances they have shifted their approach to customer oriented service
delivery.
The improvement in the process comes from reengineering of the process in order to
reduce delays in processing the transaction e.g. loan applications, cheques clearing etc.
Separate registration is required in case the accounts are maintained at different branches.
Separate registration is allowed for single and joint accounts at the option of the user.
Normally the account holders can access his accounts through the www.onlinesbi.com
only after he/she acknowledges to the respective Branch(es) the receipt of the User-Id and
Password sent to him/her.
Each account holder in a joint account with “Either or Survivor” type mode of operation
may register himself/ herself as a USER of the www.onlinesbi.com facility.
All other accounts not listed in the registration form will be available on the
www.onlinesbi.com for the purpose of enquiry only. The customers may approach
Branch for enabling transaction rights on such accounts any time.
31. Bank’s Terms:
All requests received from the USERS are logged and transmitted to the User’s Branch
for their fulfillment. The requests become effective from the time these are recorded/
registered at the respective branch. While registering the request, the USER is informed
about the time normally taken by the Bank for fulfillment such requests.
The www.onlinesbi.com service is a ‘VeriSign’ certified secure site. It assures that during
the session user is dealing with web site of SBI. The two-way communication is secured
with 128-bit SSL encryption technology, which ensures the confidentiality of the data
during transmission. .
PEOPLE
The products and the seller together constitute the banking product. Bank products cannot
be separated from people who market them. While designing the product due care should
to given to both the product and the seller. A well conceived product could fail it it is not
implemented properly. The bank products can be implemented only through people.
Banks should adopt internal marketing in order to make the whole business customer-
oriented. The bank products should be marketed to the employees first before they are
marketed to customers.
The corporate mission must be communicated effectively to all the employees by the top
level management. The recruits should not only be conversant with all the aspects of
banking but also have the skill for social interaction and tolerance for inter-personal
contact.
Most of the banks are moving towards technology-based banking. But still matters like
investment banking deposit, mobilization, and credit evaluation, etc. can be done through
persona contact. Bank offer different schemes for different target segments. They exactly
know what their customers want and accordingly provide services to their customers. For
example – Students a/c, which targets the people within the age group of 5-21, students
Account, is opened. The bank also provides special accounts for special people who are
associated with the bank for many years. Apart from these services banks also provide a
host of other services as laid down by the RBI. Banks also offer Banking services
according the target segment they are associated with; when any person comes to open a
32. new bank account their executives try and explain to them Terms and Conditions while
opening their account. Banks also provide special consencial rates to senior citizens they
are provided with more interest rates which are offered to other citizens. Banks also tend
to provide special accounts for Specific Industries or companies who have a particular
niche in the market. Similarly, these guidelines are also followed when a corporate
executive or any particular executive applies for loan is provided with at special
consencial rates. In this way banks often tend to segment their market and offer rates to
special rates at special prices.
PRICING
Pricing is factor that majority of banks sustain in the market. Pricing is done in banks
according to its services that they do offer. Nationalized banks charge low price for their
services because the services that they provide are not up to the mark and also they
provide low rate of interest as compared other than those provided by other private sector
banks. On the other hand Private sector banks provide a host of essential services and
even charge a price for that but in return they provide the customers with the services
which they don’t except. In the banks, pricing relates to interest paid by the bankers on
deposits, interest charged on loans, overdraft, cash credit, charges for various types of
services rendered on standing instructions given to the bank and commission charged.
The Reserve Bank of India and the Indian Banking Association are concerned with this
aspect. Pricing policy of a bank is considered important for raising the number of actual
customers.
The potential customer or investors generally frame their investment decisions on the
basis of interest to be received on the investment. While framing a pricing policy
different pricing methods can be used, in cost plus pricing a detailed analysis of cost
structure of various banks products and services is to be done.
In case of competition related approach, the price is decided on the competitor’s price.
The banks are required to frame two fold strategies. Strategies concerned with interest
and commission to be paid to the customer and interest or commission to be paid by the
customer for different types of services.
33. The banks also have to take the value satisfaction variable into consideration while
formulation pricing strategies. RBI has to be more liberal so that the commercial banks
make decisions in tune with the changing savings and investment behavior
PHYSICAL EVIDENCE:
Physical evidence focuses the banker’s attention because banking products are intangible.
The environment is changing. It is becoming friendlier. Most of the private and foreign
banks portray a new welcoming and friendly look to the customer. Flashy cheques books
with the nave of the account holder printed, imaginative design of bank brochure,
statement of accounts with details of transaction are other tangible aspects.
Logos, symbols, attractive brand names etc. add to the customer’s perception of service
quality. There is an urgent need to implement technologies in order to raise productivity
as well as to enable the banking system to cop with the increasing complexities of
business.It is also important for the banks to promote specialized services like credit
analysis, foreign exchange dealings etc. by appointing persons who are conversant in
such specialized activities.In order to improve financial viability and profitability of the
banks the major task before the banking industry is to consolidate its progress by
improving its operational efficiency and customer service.
Various Opportunities for Banking Sector in INDIA
THE Indian financial sector is undergoing rapid change. Structural reforms aimed at
improving the productivity and efficiency of the economy are apace. The $28-billion
sector, growing at roughly 15 per cent, has displayed remarkable stability over the years
even when other markets in the Asian region were facing a crisis. The Indian financial
sector has kept pace with the growing needs of its borrowers.
Changing environment
The most important factor shaping today's world is globalization. Companies are
constantly in search of low-cost markets. Technology is driving growth in production and
productivity and competition is stiff. Secondly, rapid development in communication
34. technology has lead to greater integration of global financial markets, in turn boosting
private capital flows and foreign direct investment.
A third factor is the increasing share of emerging market economies in world trade.
Another fallout of globalization is the increase in volatility and vulnerability of markets.
This calls for the adoption of international standards and global benchmarks.
Aligning with global standards
To strengthen India's banking system in an increasingly competitive environment and
guard against financial fragility, financial sector reforms were initiated as part of the
economic reforms launched in the country since 1991-92. Significant progress has been
made in the past few years to bring the Indian Banking system closer to international
standards.
India has adopted international prudential norms and practices with regard to capital
adequacy, income recognition, provisioning requirement and supervision and these norms
have been progressively tightened over the years. There has been a steady decline in the
level of resource pre-emption from the banking system in the form of CRR (cash reserve
ratio) and SLR (statutory liquidity ratio). Interest rates in various segments of financial
markets have been deregulated in a phased manner.
The mark-to-market practice for valuation of government securities has been gradually
enhanced and further refinement, in line with international best practices, carried out in
valuation and classification of investment by banks.
Risk management in banks has been strengthened and measures put in place to mitigate
credit and market risks and efforts are on to measure and control operational risk. Banks
have been given greater freedom in investing as also raising funds abroad and managing
their external liability, subject to prudential guidelines.
In the area of supervision, the Basel core principles for effective banking supervision are
being followed. Along with off-site surveillance there is periodic on-site monitoring of
the risk profile of banks and their compliance with prudential guidelines and a
"CAMELS"-based rating system is being followed.
The Reserve Bank of India's regulatory and supervisory responsibility has been widened
to include banking institutions and non-banking financial companies.
35. The end result is that the Indian banking sector has been considerably strengthened; there
is greater transparency and closer convergence of Indian financial system with practices
prevailing in international financial markets.
There is special focus on corporate governance and the setting up of specialized board-
level panels such as the executive, risk management, audit, compensation, asset-liability
management committees, and so on.
The RBI's Standing Committee on International Financial Standards and Codes under the
Chairmanship of Dr Y. V. Reddy has identified global standards and codes as part of the
efforts to create a sound financial architecture aligned with global practices.
Moving forward
But there are some areas that need greater attention.
Need to check NPAs: The biggest challenge is the problem of NPAs (non-performing
assets). Around 12 per cent of bank credit is locked in NPAs, which means that banks do
not earn any interest on NPA accounts. This is a drain on the financial health of banks. If
banks have to cut their costs and improve performance, they must reduce their NPAs.
The Government has re-promulgated the ordinance to help banks expedite recovery. This
calls for strengthening credit appraisal and risk management and developing review and
control systems in tune with the changing requirements.
Strengthening internal controls: While the information technology explosion has been
beneficial, it has also brought with it some unsavory side-effects. The increase in frauds
and scams in the financial sector is a cause for concern and calls for the strengthening of
internal controls of banks and financial institutions.
Focus on Indian economy: Even as banks move closer to international standards, they
cannot lose touch with the realities of the Indian economy. In this context, agriculture,
small industries/businesses and the services sectors, must be given special consideration
and credit flow to the rural sector increased. In an age where the world has become
smaller and money moves as quickly as information, achieving global benchmarks is
important for global players.
But underlying this is the need to have sound fundamentals. There is no doubt that only
banks and financial institutions that are focused on efficiency, productivity and
36. profitability have a chance to survive in a highly competitive environment and therefore
need to equip themselves thoroughly to face the future competition.