Abn-Ambro Bank Final 2007

Consumer Banking of ABN-AMBRO Bank, India and an

Analytical Review of its Past, Present and Future

Trends

ACKNOWLEDGEMENTACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr. Atish Diapnkar

(Assistant Sales Manager, Liabilities) for giving me the opportunity to

work with his esteemed organization. It was very enriching and

enlightening experience to work under his valuable guidance. I am

thankful to him for providing me with a clear basis to start the

project with and for providing valuable feedback during the course of

this project without which the study would not have been possible. I

also thank all the executives of ABN-Ambro Bank , India (Noida-NCR)

for sparing their precious time for being a part of the study. Finally

and most important I would like to thank Dr. Debashish Chaudhury,

my faculty guide because whatever knowledge I have today

pertaining to the following dissertation study and approach is only

because of his teaching.

EXECUTIVE SUMMARY

Company Name: ABN-AMBRO BANK, INDIA

Project Location: Noida-NCR (Uttar Pradesh)

Project(s) Done

a study of the consumer banking of ABN-Ambro Bank, india and an

analytical review of its past, present and future trends

ABN-Ambrois the world's leading emerging markets bank. it employs

32,000 people in over 500 offices in more than 56 countries in the

asia pacific region, south asia, the middle east, africa, united

kingdom and the americas.

the bank is into serving both consumer and wholesale banking

customers. the consumer bank provides credit cards, personal loans,

mortgages, deposit taking activity and wealth management services

to individuals and medium sized businesses. the wholesale bank

provides services to multinational, regional and domestic corporate

and institutional clients in trade finance, cash management, custody,

lending, foreign exchange, and interest rate management and debt

capital markets.

foreign banks in india are subject to the same regulations as

scheduled banks. they are permitted to accept deposits and provide

credit in accordance with the banking laws and rbi regulations.

currently about 25 foreign banks are licensed to operate in india.

foreign bank branches in india finance trade through their global

networks. the expertise of ABN-Ambro Bankwith over 150 years'

experience, global network of 500 offices in 56 countries making it

one of the leading providers of treasury financial services.

as the largest independent distributor of third party funds, ABN-

Ambro Bank gives investors choice, unbiased evaluation of funds

and a portfolio management account that matches your risk profile

and investment goals.

with years of banking experience, ABN-Ambro Bankis undoubtedly in

a strong position to help growing businesses sail through the

complexities they may face. ABN-Ambro Bankrecognizes its

responsibilities lies to its staff and to the communities in which it

operates.

apart from the above detailing, my project involved informal

discussion with some of the executives in the field for improving the

aggressive promotions which were found to be poor during the

study. also i was associated with certain marketing tasks to locate

some strategic areas in the region concerned where new bank

branches and atms could be put up.

INTRODUCTION

INDIAN BANKING SECTOR

The Reserve Bank of India (RBI) is India's central bank. Though

public sector banks currently dominate the banking industry,

numerous private and foreign banks exist. India's government-

owned banks dominate the market. Their performance has been

mixed, with a few being consistently profitable. Several public sector

banks are being restructured, and in some the government either

already has or will reduce its ownership.

PRIVATE AND FOREIGN BANKS

The RBI has granted operating approval to a few privately owned

domestic banks; of these many commenced banking business.

Foreign banks operate more than 150 branches in India. The entry of

foreign banks is based on reciprocity, economic and political

bilateral relations. An inter-departmental committee approves

applications for entry and expansion.

CAPITAL ADEQUACY NORM

Foreign banks were required to achieve an 8 percent capital

adequacy norm by March 1993, while Indian banks with overseas

branches had until March 1995 to meet that target. All other banks

had to do so by March 1996. The banking sector is to be used as a

model for opening up of India's insurance sector to private domestic

and foreign participants, while keeping the national insurance

companies in operation.

BANKING

India has an extensive banking network, in both urban and rural

areas. All large Indian banks are nationalized, and all Indian financial

institutions are in the public sector.

RBI BANKING

The Reserve Bank of India is the central banking institution. It is the

sole authority for issuing bank notes and the supervisory body for

banking operations in India. It supervises and administers exchange

control and banking regulations, and administers the government's

monetary policy. It is also responsible for granting licenses for new

bank branches. 25 foreign banks operate in India with full banking

Licenses. Several licenses for private banks have been approved.

Despite fairly broad banking coverage nationwide, the financial

system remains inaccessible to the poorest people in India.

INDIAN BANKING SYSTEM

The banking system has three tiers. These are the scheduled

commercial banks; the regional rural banks, which operate in rural

areas, not covered by the scheduled banks; and the cooperative and

special purpose rural banks.

SCHEDULED AND NON SCHEDULED BANKS

There are approximately 80 scheduled commercial banks, Indian

and foreign; almost 200 regional rural banks; more than 350 central

cooperative banks, 20 land development banks; and a number of

primary agricultural credit societies. In terms of business, the public

sector banks, namely the State Bank of India and the nationalized

banks, dominate the banking sector.

BACKGROUNDBACKGROUND

The Indian banking can be broadly categorized into nationalized

(government owned), private banks and specialized banking

institutions. The Reserve Bank of India acts a centralized body

monitoring any discrepancies and shortcoming in the system. Since

the nationalization of banks in 1969, the public sector banks or the

nationalized banks have acquired a place of prominence and has

since then seen tremendous progress. The need to become highly

customer focused has forced the slow-moving public sector banks to

adopt a fast track approach. The unleashing of products and services

through the net has galvanized players at all levels of the banking

and financial institutions market grid to look anew at their existing

portfolio offering. Conservative banking practices allowed Indian

banks to be insulated partially from the Asian currency crisis. Indian

banks are now quoting al higher valuation when compared to banks

in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.)

that have major problems linked to huge Non Performing Assets

(NPAs) and payment defaults. Co-operative banks are nimble footed

in approach and armed with efficient branch networks focus

primarily on the ‘high revenue’ niche retail segments.

The Indian banking has finally worked up to the competitive

dynamics of the ‘new’ Indian market and is addressing the relevant

issues to take on the multifarious challenges of globalization. Banks

that employ IT solutions are perceived to be ‘futuristic’ and

proactive players capable of meeting the multifarious requirements

of the large customers base. Private Banks have been fast on the

uptake and are reorienting their strategies using the internet as a

medium The Internet has emerged as the new and challenging

frontier of marketing with the conventional physical world tenets

being just as applicable like in any other marketing medium.

The “Banking Industry’s” marketing environment faced a resurgent

Govt. policy and geared up for a huge overhaul involving up-

gradation (improved equipment/facilities, structures) and

modernization (rebuilt/re-design/re-vamp facilities, structures) of its

branches.

The last year i.e. 2005-06 being the decade-end after dismantling of

nationalization and deregulation of the sector, has been a year of

consolidation for the Bank. The Bank developed its own marketing

strategy and went for a massive expansion exercise.

The Indian banking has come from a long way from being a sleepy

business institution to a highly proactive and dynamic entity. This

transformation has been largely brought about by the large dose of

liberalization and economic reforms that allowed banks to explore

new business opportunities rather than generating revenues from

conventional streams (i.e. borrowing and lending). The banking in

India is highly fragmented with 30 banking units contributing to

almost 50% of deposits and 60% of advances. Indian nationalized

banks (banks owned by the government) continue to be the major

lenders in the economy due to their sheer size and penetrative

networks which assures them high deposit mobilization. The Indian

banking can be broadly categorized into nationalized, private banks

and specialized banking institutions.

The Reserve Bank of India act as a centralized body monitoring any

discrepancies and shortcoming in the system. It is the foremost

monitoring body in the Indian financial sector. The nationalized

banks (i.e. government-owned banks) continue to dominate the

Indian banking arena. Industry estimates indicate that out of 274

commercial banks operating in India, 223 banks are in the public

sector and 51 are in the private sector. The private sector bank grid

also includes 24 foreign banks that have started their operations

here. Under the ambit of the nationalized banks come the

specialized banking institutions. These co-operatives, rural banks

focus on areas of agriculture, rural development etc., unlike

commercial banks these co-operative banks do not lend on the basis

of a prime lending rate. They also have various tax sops because of

their holding pattern and lending structure and hence have lower

overheads. This enables them to give a marginally higher

percentage on savings deposits. Many of these cooperative banks

diversified into specialized areas (catering to the vast retail

audience) like car finance, housing loans, truck finance etc. in order

to keep pace with their public sector and private counterparts, the

co-operative banks too have invested heavily in information

technology to offer high-end computerized banking services to its

clients.

SOURCE: ABN-AMRO Bank, India

Annual Report, 2005-06

RESEARCH OBJECTIVE DESIGNRESEARCH OBJECTIVE DESIGN

OBJECTIVES

1. To study the brief history of the Bank.

2. To formulate a comprehensive SWOT Analysis.

3. Study on the services being offered in tune to the ‘Consumer

Banking’ approach.

4. A study on the present standing of Bank’s Accounts in the

industry.

5. Comparative study of the saving accounts with other leading MNC

Banks of India.

RESEARCH HYPOTHESIS

NULL HYPOTHESIS

“Services and facilities offered by ABN-Ambro Bank , India, in tune

with the changed business scenario (aggressive sales and

promotions) of the banking sector is not adequate and effective.”

ALTERNATIVE HYPOTHESIS

“Services and facilities offered by ABN-Ambro Bank , India, in tune

with the changed business scenario (aggressive sales and

promotions) of the banking sector is adequate and effective.”

RESEARCH METHODOLOGY

The research methodology deals with the following questions:

1. AREA DEFINED

The research is concentrated in Noida-NCR, Uttar Pradesh. All the

branches in the targeted area were contacted to be a part of the

study.

2. SAMPLE PLAN AND SIZE

The survey was done using Non-Probability

Convenience Sampling. The sample size was

fixed to eight offered services with 39 full-time

operative Bank branches.

Personal Finance

Credit Cards

Priority Banking

Investment Advisory Services

Personal Investments

Insurance

Deposits and Retail Services

Retail FX Products

3. DEVELOPMENT OF SURVEY QUESTIONNAIRE

The following thoughts were kept in mind while acquiring data

like

Clear research objective which describes the kind of

information needed, the hypothesis and the scope of the

research.

Descriptive, experience-based research, which provided an

accurate snapshot of some aspect of market environment

such as the services offered by ABN-Ambro Bank in keeping

up with the changed banking scenario in Noida-NCR. A pilot

testing of the plot was done along with the Company sales

team before going in to the actual field.

The objective was to rate the services offered by ABN-Ambro

Bank on different issues pertaining to their daily aspects of

business in Liabilities-Wealth Management and these demanded

in favour of a descriptive, experience-based research using the

probing method and that too with personal visit for taking

responses to ensure the proper feedback.

While framing the study few important things were kept in mind

such as the language, which is simple and easy to comprehend.

The queries were kept short enough to make them easy to

understand. Ambiguity in responses has been avoided. Special

care has been taken that we have a short and effective discussion

so that we get all the information that the study needs.

4. COLLECTING THE DATA

Data collection has been done from both sources primary as well

as secondary.

Primary data: It has been collected by meeting various

managers of the ABN-AMRO Bank, Citibank, ABN-Ambro Bank ,

ICICI, HDFC, HSBC, GTB, UTI and IDBI.

Secondary data: From newspaper, magazines, Libraries.

The data was collected by getting the respondents to interact on

a one to one basis, as it facilitated explaining to them questions

in which they had doubt.

5. THE RESPONSE RATE

All the respondents sincerely answered to the questions. To

facilitate better survey on an average 45 minutes to one hour was

spent on every counted heads; every aspect of ABN-Ambro Bank

services were more or less discussed during the survey.

LITERATURE SURVEY

ABN-Ambro Bank sets up a 100 per cent Subsidiary

Our Banking Bureau

11 March 2007

Mumbai: ABN-Ambro Bank has set up ABN-Ambro Bank Investments

and Loans (India) Ltd (SCILL), an NBFC, which will be ABN-Ambro

Bank 100 per cent subsidiary.

"We have set up the NBFC since that will increase our liquidity, we

plan to raise commercial papers, non-convertible debentures and

inter-corporate deposits in the local debt market," said , CEO, India

Region, ABN-Ambro Bank , at a press conference held here. The

foreign bank has chosen this route to access the domestic capital

markets.

SCILL will start with an equity capital of $7.5 million, which will be

scaled up to $50 million over 18 months. The company hopes to

build up a Rs 1,100-crore balance sheet in a year's time by

disbursing funds to top corporates in India.

The NBFC's corporate clientele would be similar to that of the bank's

client list, said Mr. M.A. Ravikumar, Regional Head, Global Markets,

ABN-Ambro Bank .

ABN-Ambro Bank Mumbai Marathon 2006

© 2005 ABN-Ambro Bank , India

Business Standard, Mumbai, January 25, 2005

The ABN-Ambro Bank Mumbai International Marathon 2005 was

arguably one of the biggest sporting event in the city of Mumbai in

recent times. The mood was upbeat, the adrenaline pumping, and

the national flag was held high as Mumbai and India wore its heart

on its sleeve. Celebrities and corporate head honchos in 1000s ran

and raised money for a cause they supported. Over Rs.1 crore was

raised through the event for various charities.

Give India is the first "philanthropy exchange" in India. Managed by

the nonprofit GIVE Foundation, GiveIndia doesn't seek donations for

itself, but helps you make your donations more efficiently and

effectively, to a cause you choose. GiveIndia is the Official Charity

Partner to the ABN-Ambro Bank Mumbai Marathon 2005 (SCMM

2005).

As a tribute to the spirit of Mumbai, charity will be at the heart of

this year's event. Special packages have been designed to

encourage people to raise pledges for a cause of their choice. A slew

of support activities are planned and materials created to help

anyone who would like to make a difference, reach out and do so.

Over 100 charities will participate, and we hope to raise several

crores of rupees for them.

Why Run for a Cause

Because it is a great way to show that you care;

Because running for a cause and raising pledges can be great

fun, and can be much easier than you think - ask any of the

people who did so last year;

Because the 35,000 people who run the London Marathon raise

£35 million or over Rs.250 crores every year for their charities. As

do runners at the New York, Boston and Singapore marathons.

Because you choose the cause or charity you would like to run

for, a charity that you trust to use the pledges you raise in a

transparent, accountable and effective way to make a difference

to the lives of the underprivileged.

There are 3 ways for an applicant to raise pledges -

The Dream Team

The Corporate Challenge

The Pledgers' United

ABN-Ambro Bank Fund Mgmt. joins the game

Indian Express, Wednesday December 15, 2004 3:26 AM

By Monika Halan

ABN-Ambro Bank AMC’s draft offer document for its new closed end

debt fund is now on the Sebi website. Called Grindlays Relief Bond

Fund, the offer from ABN-Ambro Bank Mutual Fund, is the second

fund offering to call its debt fund a “Relief Bond Fund”.

As reported earlier by this newspaper, HDFC AMC has already used

the term “Relief Bond Fund” for its debt fund offering without

offering any substantial reason for using the word ’relief’ in the

scheme name.

It is feared that the words “Relief Bond” will confuse the small

investor who may associate the mutual fund with the RBI paper that

is no longer in the market, but whose brand name is still popular.

The CEO of ABN-Ambro Bank AMC Naval Bir Kumar did not respond

to calls to his office on this issue, but others in the industry are

concerned about confusing nomenclature of scheme names.

Says A.P. Kurien, Chairman of the Association of Mutual Funds in

India (AMFI), the industry association: “There should be truth in

labelling of fund schemes. We need to examine what ’relief’ the fund

houses are offering. Amfi will take an official view on this in a couple

of days”. RBI had good reason to call its bonds ’relief’ bonds, since

they offered tax relief. There seems to be no reason given in the

ABN-Ambro Bank offer document that offers a clue as to what the

’relief’ in the scheme will be.

The investment objective of the Grindlay’s scheme is “growth of

capital by investing in a portfolio of fixed income securities normally

in line with the duration of the scheme”. The asset allocation is debt

and money market instruments (100 per cent). The risk profile: Low

to medium.

So, the scheme is not limited to buying government or institutional

paper or offering low-risk, tax-free returns. The aim is growth that

comes with low to medium risk. The RBI paper was associated with

zero risk and tax breaks. However, things may look up for the retail

investor because sources in SEBI say some change can be expected

in the name of these funds.

PROFILE OF ABN-AMBRO BANK

SERVICES PROVIDED BY ABN-AMBRO BANK

Through the network of over 500 offices in more than 50 countries,

ABN-Ambro Bank offers personal financial solutions relevant to you

as an individual. ABN-Ambro Bank treasure building a relationship

with the customer, developing an understanding of customers

changing financial needs at different stages of your life. Their long

heritage of nearly years has enabled them to change with time,

offering quality products by means that are convenient to customer.

ABN-Ambro Bank offer includes:

Personal Finance

Credit Cards

Priority Banking

Investment Advisory Services

Personal Investments

Insurance

Deposits and Retail Services

1. PERSONAL FINANCE

Mortgages

In many of the markets where ABN-Ambro Bankoperate, especially

in key markets of Hong Kong, Singapore, Malaysia, they are reported

to be the market leader for mortgages. Their experienced and

dedicated teams will guide the individual in every single step to

enable him a smooth and hassle-free experience, offering him rates

and repayment packages most suitable. Start by trying our "instant

approval” service.

Unique Features:

Low interest rates, option of flat or reducing interest rates

Low EMI (equated monthly installments)

No hidden costs like processing charge. Everything is done up

front.

Quick approval and realization.

Tax benefits.

No unfair collateral demands.

A simple mortgage process.

Personal Loans

ABN-Ambro BankBank helps the customer to be in control of his/her

own finances. Personal Loans, without any guarantees or collaterals,

are available to customer to meet specific credit needs. Choose

Installment Loan or Revolving Loan, whatever suits best. Whether

planning a vacation, re-decorating home, paying for child's college

education, or simply wish to have a standby line of credit for

unforeseen expenses, ABN-Ambro BankBank's Personal Loans can

help fulfill the dreams.

Personal loan is specially designed to get the money need in time,

without having to answer unnecessary questions, and without any

collateral or mortgages.

Unique Features:

Choose the repayment plan most convenient, ranging from a

compact 12-month period to a comfortable 36-month span.

Free to use the money for renovating house or meeting some

unexpected expenses etc.

No collateral or security.

Quick and easy processing.

2. CREDIT CARDS

ABN-Ambro BankVisa and MasterCard credit cards

ABN-Ambro Bankcredit cards provide financial flexibility, worldwide

acceptance, and round-the-clock convenience.

Benefits:

Welcomed at the largest number of merchant outlets

across the world.

Revolving credit facility, allowing repaying card

outstanding over time, at a convenience.

Cash withdrawal in local currency at Visa and

MasterCard linked ATMs across the world.

Platinum, Gold or Classic cards to suit lifestyle and

needs.

Smart credit cards with special privileges and security.

Attractive rewards programs.

Affinity and co branded credit cards that give additional

benefits from our partners.

World-class service assistance and 24-hour customer

help line.

3. PRIORITY BANKING

Experience new standards in banking. And lead a life of privilege and

preferred financial solutions tailored perfectly for you - with Priority

Banking from ABN-Ambro Bank .

Designed specially for those who appreciate only the finest things in

life, Priority Banking offers the very highest levels of personalized

banking to match unique status.

By embracing a holistic approach to financial well being and

commitment to personal Wealth Management with a full range of

innovative products and services, a customer will find banking with a

reassuring and secure experience.

Bank is committed to helping a plan, build and protect wealth by

offering individual attention as well as international banking and

investment opportunities to meet current and future needs.

ABN-Ambro BankBank Priority Banking is created specifically for a

chosen few individuals, who will settle for nothing but the best and

demand the highest standards of service in all your banking

relationships.

Unique Features:

Personalized Priority card will give instant recognition of

priority status at all branches of ABN-Ambro Bank, worldwide.

A dedicated Customer Relationship Manager trained to

understand specific financial needs and help to manage assets

at home and abroad. It is as personalized as can be.

Preferential pricing on our various products.

Entitled to exclusive benefits.

A complimentary pre-approved Gold Standard Credit Card .

Commission free VISA traveler's cheques.

Special foreign exchange rates.

Special invitations to exclusive events.

Many account facilities, which are absolutely free of charge.

Priority Banking. It's like owning the bank.

4. INVESTMENT ADVISORY SERVICES

The ABN-Ambro BankInvestment Advisory Services is comprehensive

process that assists in planning for future. With this service, they can

help to review financial goals, conduct a financial health check,

evaluate risk profile and customize an asset allocation plan to realize

financial aspirations.

5. PERSONAL INVESTMENTS

ABN-Ambro Bankis the leading independent distributor of unit trusts

and mutual funds in Asia. Because they don't actually manage their

own investment funds, they are absolutely objective in fund

evaluation process. Bringing unmatched skill, expertise and know

how to seek the best performing investments around the world, it

can be assured of different investment options and a wealth of

informative and relevant updates.

With trained Investment Services Consultants from countries around

the globe, they can help to make the right investment decisions.

Using a unique risk evaluation to gauge the level of risk customer

can be comfortable with, coupled with a proprietary fund evaluation

process to identify funds, assess risks and shortlist top-performing

funds; customer can be ensured of a personalized investment

portfolio catered to needs.

ABN-AmbroBank Investment services puts a whole new world of

possibilities within the reach of people who would like to achieve

their financial goals but have many other demands on their time.

Unique Features:

A one-stop shop offering a wide range of investment options to

grow your wealth.

Available across 8 cities.

Trained investment services counselors.

Sophisticated research franchise.

Impartial and unbiased analysis on options best suited.

Tailor made investment plans suited to risk taking ability.

6. INSURANCE

ABN-Ambro Bank recognizes the things important to customer and

his family. They are dedicated to protecting the customer, his family,

and his hard earned assets and even his future earnings giving him

the assurance he needs.

Their strategic alliance with Prudential and CGU Insurance puts us in

a very strong position to provide for Life and General Insurance

needs. With a comprehensive range of products, ABN-Ambro Bankis

set to protect the World.

7. DEPOSITS AND RETAIL SEVICES

Deposits

ABN-Ambro Bankoffers a wide array of deposit products in both local

and foreign currencies to help to earn competitive interest rates.

Their international network offers an extra convenience while

abroad. In some countries, they offer premium interest savings plans

like Higher Education Fund to turn the dreams into reality.

Retail Services

ABN-Ambro Bankoffers a comprehensive range of retail services in

many countries. These include:

Automated banking services.

Demand drafts.

Foreign exchange services.

Local and foreign currency cheques.

Safe deposit boxes.

Telegraphic transfers.

Traveler’s cheques.

ADDITIONAL SERVICES

1. INTERNET BANKING

You’re banking needs now taken care of at the click of a mouse.

With Secure Internet Banking ID and Password, a customer can login

and take care of his/her banking and credit card needs at his/her

convenience and time. No more queues, no more waiting.

2. PHONE BANKING

As part of commitment to meeting all needs, ABN-Ambro Bankoffer

Phone Banking - a service that enables you to access a wealth of

financial information, 24 hours a day, 7 days a week.

Through Phone Banking:

Check your account balance.

Get details about specific transactions.

Inquire about the status of a particular cheque.

Order demand drafts.

Transfer funds amongst your linked accounts.

Get information on deposit rates, lending rates,

exchange rates and bank charges.

Access information on any of our products and services.

Call Room Service to open your account.

Make complaints and suggestions.

3. MOBILE AND E-MAIL ALERTS

ABN-Ambro Bankalways try and make life simple.’ Mobile and E-mail

Alerts' service is designed just for that.

4. SMARTFILL DEBIT CARD

Smart fill Debit Card, launched in association with Bharat Petroleum,

will help to save on fuel purchases and even gets you free fuel.

Unique Features:

Earn reward points every time you use the card to make

purchases ANYWHERE, which you can then redeem for fuel at

select Bharat Petroleum outlets.

When the card is use to make purchases at select Bharat

Petroleum outlets, the customer don't have to pay the 2.5%

surcharge levied on most credit or debit cards.

Smart fill Debit Card is globally valid. It gives access to 12

million merchant establishments worldwide and over 55,000 in

India.

A customer can access over 3500 ATMs in India for FREE* and

over 750,000 ATMs worldwide through the Visa ATM network.

The card gets an exclusive discount of 5% at select In & Out

stores at Bharat Petroleum outlets, besides benefits at leading

retail outlets and restaurant.

5. ATM

ABN-Ambro Bank ATMs give the freedom to conduct most of the

banking transactions 24 hours a day, 365 days a year.

The ATM card is and absolutely free. There are no transaction

charges on the use of card. What's more, use ATM card at any of the

50 ATM centers across the country.

6. CREDIT CARD HELP-LINE

As part of commitment to meeting all needs, ABN-Ambro Bankoffer

the facility of calling them over the phone to access a wealth of

information on credit cards, 24 hours a day, 7 days a week.

7. ELECTRONIC CLEARING SYSTEM

ABN-Ambro Bankintroduces ECS (Electronic Clearing System), an

innovative facility for busy people. With this facility, Card bill amount

automatically gets debited from your savings bank account, so that

customer doesn’t have to worry about the last minute payment rush.

Since this entire process happens through the Reserve Bank of

India's electronic clearing mechanism, customer can enjoy the

advantages of ECS.

8. FAX BANKING

It’s the most efficient way to stay on top of the business finance.

Every day, ABN-Ambro Bankfax a report of all transactions made

the previous day. Customer will still receive his/her regular

monthly statements.

MAINTANING ACCOUNTS WITH ABN-AMBRO BANK

DEPOSITS

Demand deposits Time deposits

Saving account Current account Fixed deposits

Individual Twin-one account Parivaar account

SAVING ACCOUNT

DEMAND DEPOSITS

1. SAVING ACCOUNT

ABN-Ambro Bank introduces aXcess Plus - a revolutionary savings

account that provides with unparalleled aXcess to money. An

account primarily opened for and operated by individuals, wherein

the numbers of transactions are few and which give the customer

liquidity, with the facility to earn some interest on the residual

balances.

With the aXcessPlus account the customer can now aXcess cash at

over 1800 ATMs in India to free and at over 650,000 ATMs worldwide

through the Visa network. Besides, he can use his account to shop

for goods and services at over 25,000 outlets in India and at 10

million outlets worldwide, without ever having to carry cash!

The aXcess Plus account provides with a globally valid debit card

that provides these and a host of other exciting benefits.

Unique Features:

There are several unique features about the ABN-Ambro Bank's

aXcess Plus account, each designed to provide the most convenient

banking experience could ever get!

Free aXcess to cash at over 1800 ATMs in 35 cities in India

Globally valid debit card

The debit can be used to make purchases at over 25,000

merchant outlets in India and at over 10 million outlets

worldwide.

Phone banking, Internet banking, Multi-city banking, 365 days

branches, extended banking hours, lockers facility and

doorstep banking.

Unique free insurance benefits - lost card insurance, purchase

protection and personal accident cover.

Exciting usage benefits such as Travel Cash Back - discounts

on airfare, Rasoi - ongoing privileges in restaurants, Fab Deals

- special privileges for shopping at select merchant outlets,

discounts at all BPCL IN & Out stores and special rates on BPL

electronic items plus a host of other discounts vouchers.

2-IN-1 ACCOUNT

The best of both worlds:

A unique account that offers you double advantage, letting you

earn the High interest rate of a fixed deposit while you enjoy the

flexibility of a savings & current account.

PARIVAAR ACCOUNT

One-stop solution for your entire family's banking needs:

A unique Wealth Management Solution that offers the family

flexibility and tools for wealth accumulation and preservation.

2. CURRENT ACCOUNT

An account opened and operated primarily by corporate for

commercial use, wherein the numbers of transactions are much

higher than a normal savings account. No interest is paid on these

accounts.

Unique Features:

High Liquidity

Unlimited transactions

Zero Interest

Any branch banking

TERMS DEPOSITS

A term deposit is a deposit held for a contracted period of time and a

contracted rate of interest. The Rate of interest for term deposits is

higher than that applicable for a normal savings account and Penal

rates of interest is applicable if the deposit is withdrawn before the

contracted period.

Terms deposits rates:

INTEREST RATE (CARDED) FOR TERM DEPOSITS W.E.F.April

27,2006

DOMESTIC/NRO

Tenor Amount (in INR)

Current Rate

effective 6-April-06

Revised Rate

effective 27-

April-06

15-29 Days Any Amount 4.00% 4.00%

30-59 Days Any Amount 4.25% 4.25%

60-89 Days Any Amount 4.50% 4.50%

90-99 Days Any Amount 4.50% 4.50%

100 Days* < 15 lakhs 5.00% 5.00%

100 Days*

>=15 lakhs

<=1Cr. 5.25% 5.25%

100 Days >1 Cr. 5.00% 5.00%

101-179 Days Any Amount 4.50% 4.50%

180-219 Days Any Amount 4.75% 4.75%

220 Days*. <15 lakhs 5.25% 5.25%

220 Days*.

>=15 lakhs<=1

Cr. 5.50% 5.50%

220 Days >1 Cr. 5.25% 5.25%

221 Days<1 Yr. Any Amount 4.75% 4.75%

1 Yr. < 13 Mths. 15

Days Any Amount 5.00% 5.00%

13 Mths 15 Days* <15 lakhs 5.75% 5.75%

13 Mths 15 Days*

>=15 lakhs<=1

Cr. 6.00% 6.00%

13 Mths 15 Days > 1 Cr. 5.00% 5.00%

13 Mths16

Days<15Mths Any Amount 5.00% 5.00%

15 Mths* < 15 lakhs 5.00% 6.00%

15 Mths*

>=15 lakhs<=1

Cr. 5.00% 6.25%

15 Mths > 1 Cr. 5.00% 5.00%

15 Mths < 18 Mths Any Amount 5.00% 5.00%

18 Mths* < 15 lakhs 5.00% 6.25%

18 Mths*

>=15 lakhs<=1

Cr. 5.00% 6.50%

18 Mths > 1 Cr. 5.00% 5.00%

18 Mths < 2 Yrs. Any Amount 5.00% 5.00%

2 Yrs.< 3 Yrs. Any Amount 5.05% 5.05%

3 Yrs.< 4 Yrs. Any Amount 5.35% 5.35%

4 Yrs.<= 5 Yrs. Any Amount 5.60% 5.60%

SWOT ANALYSIS

STRENGHTS

Market position is strong

Aggressive foreign bank

Shareholders return has grown more than 7 times

Maintains a position as a leading Asian Cash Management

provider

Brand - SCB’s modern and dynamic look appeals to the

growing middle income earners

One of the most profitable MNC in India

Improved product proposition

Better geographic balances

Multi-cultural organization that offers opportunities to good

managers

WEAKNESS

HDFC, ICICI, ABN-Ambro Bank , Citibank and HSBC are

dominant players

Has disadvantage due to last entry

Fewer locations as compared to other MNC banks

Service delivery perception is weak

OPPORTUNITIES

Branch expansion for rapid growth

Increase focus on value creation in whole banking

Improve shareholders return

Build market share in consumer banking as consumer banking

continues to offer highest potential for growth

Broadening of the demographic base

Tie ups with master card networks

Integrated sales and service approach

Can offer a complete corporate package into under proposed

corporate relationship

THREATS

IDBI is pitching in quite aggressively

Citibank is expanding in new markets

Competitive products and offers from ICICI and HDFC

Proposed networking of all branches in next 6 months

Reduced business in OECD business

RECOMMENDATIONS

STRONG NEED OF BRAND BUILDING

The bank needs to make a lot of marketing effort. The level of

recognition that may be desired by any brand has not been achieved

by ABN-Ambro Bank, Noida. A lot of noise is made whenever a child

is born and as long as that noise is not made the doctors are not

sure about the life of that child. Same is the case in marketing.

Whenever a new branch comes into existence it is necessary that

they announce their birth. Here comes the pre-launch exercise, and

similar is the case after the birth. The name has to be taken again.

Boast about yourself, about the strong points that you have over and

above your competitors. Pull the consumer towards you. As said

earlier it is a relationship of trust and this trust can be generated

through better and better performance of the bank. Now as working

with the bank for some time the facts have come out that they

believe in low costing and want to keep low profile. So better way of

marketing can be sought which are low at cost. These are discussed

further.

PROMOTIONAL STRATEGIES

Press publicity:

Paper inserts

Advertisements in newspaper (local and national).

Interest cards distribution

Mailers/personal invitations to selective section of the society

Leaflets

Outdoor publicity:

Banners in commercial areas and prime sites.

Air balloons at shopping complex.

Bus stands shelters.

Off site ATM for developing business.

Advertisements on Dividers and Railings.

Media:

Local channel advertisement (cable TV scrolls).

Advertisements in news channels and business channels.

Face to face:

Personal interaction of marketing executives through.

Meetings.

Detailing about schemes and updating them form time to

time.

Event sponsoring in local clubs and social gathering.

Road shows.

Contacting senior citizens in parks in morning and evening.

Advertisement strategies segmented according to the target

customer Senior citizens, housewives, students, service

class

Personal mailers.

Contacting at parks during morning and evening walks.

Contacting at stoplights.

Road shows at market sights.

Cable TV advertisements during prime time.

Stick on the newspaper.

Leaflet on the wiper of the vehicles in the parking lots.

Educational bodies

Sponsoring some events in schools and collages.

Meeting the top management for opening of salary accounts.

And fee payment system of the students.

Local clubs like youth clubs, laughter clubs, senior citizen

clubs, ladies club, etc.

Event sponsoring.

Temporary banners.

Advertisements in club magazines.

Opening of extension counters (in case of large club).

Professionals and other active samaj in the area (e.g. Jain

samaj)

Direct mailers.

Cold calling.

Informal gathering arranger by the bank for some social cause.

Commercial places and market establishments:

Cold calling.

Personal visits of the executives.

NEED A CHANGE IN MARKETING FOCUS

The marketing team of the branch has until now focused on selling

of their most competitive product, which are there fixed deposits.

The rates of interest, which they provide on fixed deposits, are really

competitive and highest in this market. But this strategy could not

be held for a longer period of time as in the long run it would

become liability to the bank to pay such high rate of interest and it

would lower the revenues of the branch. Even the survey conducted

proved that the fastest selling product is savings account amongst

the consumer. With a network that is good enough this bank can

make efforts to increase the market share in the area where the

competition is so tough. This needs a brain storming from the top

management in the branch as to how about fixing the targets in

each category of accounts.

Solid network required to develop the business further

If we see the results of the survey, it is evident that people prefer

strong networking system to make their banking life as comfortable

and reachable as possible. For ABN-Ambro Bank to enjoy a

good customer base, they should make efforts towards developing

more and more ATM in the city and extension counters to facilitate

better and fast service. Updating of technology from time to time is

very necessary. ABN-Ambro Bank was the very first bank to start few

of the very good service like Internet banking; bringing about new

service to attract more and more consumers should carry on this

tradition further.

Corrective positioning of ABN-Ambro Bank.

ABN-Ambro bank is known for its corporate operations. Very big

names in the corporate world have their accounts with this bank. For

the past so many years it has been catering to these clients only and

has generated an image of being a corporate bank. This product

extension into the retail segment need separate focus and separate

positioning in the market. The bank cannot carry on its old image for

both the segments of the market. For this a distinctive advertising

campaign has to be developed (refer to the promotional activities

stated earlier) to reposition the brand in potential consumer’s mind.

It should be noted that both the type of clients differs from each

other in their true nature. One is a very low profile relationship,

which talks about masses. This type of client requires assurance,

trust, information, and support. This is retail banking. While on the

other hand the second type of relationship is stronger, which is the

corporate client that requires different setup all together.

MAKE THE BRANCH SELF-INFORMATIVE

The branch should be decorated in a manner, which would provide

maximum information to the customers without any difficulty. All the

schemes and products, all the service charges, days and time of

transactions should be printed in a beautiful manner and hanged on

the walls of the branch where customer can see with ease. This was

one of the things, which were found to be absent in this branch. By

doing so the customer would feel more attached and wall in will be

converted in higher number of accounts.

CONCLUSION

With years of banking experience, ABN-Ambro Bankis undoubtedly in

a strong position to help growing businesses sail through the

complexities they may face.

ABN-Ambro Bank offers one of the widest ranges of banking

products and services in the market today. Managing a growing

business demands most of your time and energy. That is why

working with the right bank can help one’s business sail more

smoothly and ABN-Ambro Bank helps in doing that as it understands

today’s business requirements.

The bank provides the right kind of services and accounts at the

right time and according to the needs of the market.

The expertise of ABN-Ambro Bankwith over 150 years' experience,

global network of 500 offices in 56 countries making it one of the

leading providers of treasury financial services.

As the largest independent distributor of third party funds, ABN-

Ambro Bankgives investors choice, unbiased evaluation of funds and

a portfolio management account that matches your risk profile and

investment goals.

Not only this, the bank provides the widest range of foreign

currencies for your investment needs plus other products such as

housing loan, insurance and unit trusts.

ABN-Ambro Bank provides well-developed remote channels for your

banking convenience through our 24-hour phone banking and

Internet banking.

Not only this when made comparison with almost all the leading

banks of India, ABN-Ambro Banknot only stands high among all but

is giving them a fierce competition.

Foreign banks in India are subject to the same regulations as

scheduled banks. They are permitted to accept deposits and provide

credit in accordance with the banking laws and RBI regulations.

Currently about 25 foreign banks are licensed to operate in India.

Foreign bank branches in India finance trade through their global

networks.

All commercial banks including ABN-Ambro Bankface stiff restrictions

on the use of both their assets and liabilities. Forty percent of loans

must be directed to "priority sectors" and the high liquidity ratio and

cash reserve requirements severely limit the availability of deposits

for lending. Since July 1993, foreign banks like ABN-Ambro Bankhave

been required to make 32 percent of their loans to the priority

sector. Within the target of 32 percent, two sub-targets for loans to

the small-scale sector (minimum of 10 percent) and exports

(minimum of 12 percent) have been fixed.

Foreign banks, however, are not required to open branches in rural

areas, or to make loans to the agricultural sector.

BIBLIOGRAPHY

Websites:

www.indianexpoterregister.com

www.einnews.com

www.bis.org

www.abn-ambro bank.com

www.newspaperarchieve.com

www.google.com

Books:

banking and investments – edited by senior bankers

Bank-net directory 2005-06

Banking and Finance Glossary

White paper on Banking systems survey 2005-06 – Trends in

Banking technology industry

Journals of ABN-Ambro Bank

ABN-Ambro Broachers and Manuals.

Statistical Methods by S.P. Gupta.

Articles:

Business Standard, Mumbai, January 25, 2005

Indian Express, Wednesday December 15, 2004 3:26 AM

Our Banking Bureau, 11 March 2004

The Times of India- Thursday, March’04

The Hindu – Sunday, Feb’04

APPENDIX

Income Group

No. Of

Respondents

High 18

Middle 11

Low 1

Percentage of Repondents with Reference to Income Group

60%

37%

3%

High

Middle

Low

Category

No. Of

Respondents

Service 10

Student 4

Businessman 13

House Wife 3

Category Wise Break Up of Respondents

33%

13%

44%

10%

Service

Student

Businessman

House Wife

Used Services Of ABN-

Ambro Bank

No. Of

Respondents

Yes 9

No 21

Source Of

Information

No. Of Respondents (Out

Of 30)

Friends & Relatives 21

Advertisements 6

Visit to Bank 5

Others 19

Banks No. Of Users

ICICI 12

SBI 15

HDFC 7

PNB 11

HSBC 4

BOB 5

Others 14

Features No. Of Respondents

Good Customer Care 25

Security Of Money 19

Goodwill Of the Bank 18

Network Of the Bank 16

Location Of the Bank 16

Services No. Of Respondents

ATM 23

Door Step Banking 12

Phone Banking 21

Mobile Banking 9

Multicity Branching 15

24-Hour Banking 2

Internet Banking 12

If Yes Which Services

Of ABN-Ambro Bank No. Of Respondents

ATM 7

Door Step Banking 3

Phone Banking 2

Mobile Banking 1

Multicity Branching 5

24-Hour Banking 3

Internet Banking 1

Attributes Very Good Good Neutral

Not

Good Bad

Loan Facility 0 1 4 1 3

Interest Rate 2 1 3 3 0

Security Of Money 3 2 2 2 0

Customer Care 1 5 2 2 0

Good Network 0 2 4 1 2

Personalized Services 1 4 3 1 0

QUESTIONNAIRE

ABN-AMBRO BANK

[This is to get the general information from all the customers, what

they think about the bank and how ABN-Ambro can be an ideal

bank]

1. Which all others banks are you a user of?

ICICI Bank

State Bank of India (SBI)

HDFC

Punjab National Bank (PNB)

HSBC

Bank of Baroda (BOB)

Others

2. If you would like to switch over to any other bank what

will u like to choose?

ICICI Bank

HDFC

Kotak Mahindra

ABN-Ambro Bank

Others

3. What are the features that influence your decision

while availing

Any services of a bank?

Good customer care

Security of your money

Goodwill of the Bank

Network of the Bank

Location of the Bank

4. Which all services of the bank do you use?

ATM

Door step Banking

Phone Banking

Internet Banking

Mobile Banking

24 hours Banking

5. How often do you use the services of your Bank?

Weekly

Monthly

Quarterly

6. Are you satisfied with the services provided by your

Bank?

Very much Satisfied

Satisfied

Dissatisfied

Strongly Dissatisfied

7. Have you ever used any services of ABN-Ambro

before?

Yes

No

8. If yes, which all banking services have you used?

ATM

Door step Banking

Phone Banking

Internet Banking

Mobile Banking

24 hours Banking

9. Rank the following attributes of ABN-Ambro Bank .

ATTRIBUTES VERY GOOD GOOD NEUTRAL NOT GOOD

BAD

Loan facility

Interest rate

Security of money

Customer care

Good network

Personalize services

10. Your recommendations for ABN-Ambro Bank regarding

Product/services.

NAME: ____________________________

PROFESSION: ______________________

PERSONAL INCOME: _________________

CONTACT NUMBER: ___________________