idbi bank

A

PROJECT STUDY REPORT

ON

TITLED

“CUSTOMER AWARENESS TOWARDS RETAIL BANKING IN IDBI BANK”

Submitted in partial fulfilment for the Award of degree of

Master of Business Administration

SUBMITTED BY: SUBMITTED TO:

Ashish Parashar Dr. Jyotsana Khandelwal

MBA IVth SEM (DEAN)

APEX INSTITUTE OF MANAGEMENT & SCIENCE

2012-2014

1

CERTIFICATE

This is to certify that MR. Ashish Parashar of MBA fourth semester of Apex Institute Of

Management & Science , Jaipur, has completed her project report on the topic

“CUSTOMER AWARENESS TOWARDS RETAIL BANKING IN IDBI BANK” under the

supervision of Dr. jyotsana Khandelwal.

To my best knowledge the report is original and has not been copied or submitted

anywhere else. It is an independent work done by her.

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DECLARATION

Hereby I declare that project report entitled “CUSTOMER AWARENESS TOWARDS

RETAIL BANKING IN IDBI BANK”” submitted for the degree of Master Of Business

Administration, is my original work and the project report has not formed the basis of

the award of any diploma, degree, associate ship, fellowship or any other titles. It has

not been submitted to any other university or institution for the award of any degree or

diploma.

Place: MBA

4THSEM

Date:

3

Acknowledgement

I express my sincere thanks to my project guide, Dr. Jyotsana Khandelwal for guiding

me right form the inception till the successful completion of the project. I sincerely

acknowledge him for extending their valuable guidance, support for literature, critical

reviews of project and the report and above all the moral support he had provided to

me with all stages of this project.

I would also like to thank the supporting staff of sales and distribution Department, for

their help and cooperation throughout our project.

(Signature)

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CONTENTS

S.NO. PARTICULARS PAGE NO.

1 INTRODUCTION TO THE TOPIC 6

2 INTRODUCTION TO THE ORGANIZATION. 26

3 RESEARCH METHODOLOGY

Introduction

Title of study

Objective of study

Type of research

Sample Size and methods of selecting

sample

Data Collection

Limitations of Study

86

4 ANALYSIS AND INTERPRETATIONS 91

5 SWOT 106

6 FACTS AND FINDINGS 111

7 CONCLUSION 114

8 RECOMMENDATION AND SUGGESTION 115

9 APPENDIX 116

10 BIBLIOGRAPHY 122

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Introduction: Executive summary of the project

Executive Summary

Indian banking retail sector is witnessing one of the most hectic marketing

activities of all times. There is always a ‘first mover advantage’ in an upcoming sector.

The idea is help to each other "banking business" means the business of receiving

money on current or deposit account, paying and collecting cheque drawn by or paid in

by customers, the making of advances to customers.

The Industrial Development Bank of India Limited commonly known by its

acronym IDBI is one of India's leading public sector banks and 4th largest Bank in

overall ratings.

In this project or research, the main contention is to highlight the customer

awareness towards retail products provided by the IDBI bank. The objective of this

project is to study the changing preference of consumer towards organized retailing

and to analyze customer satisfaction towards products and services offered and to

share and create knowledge around the area of wealth management, develop better

understanding of this area and help each other find better opportunities in the area of

wealth management.

This research will go through formulating the objective of the study, process of

data collection, usage of appropriate sampling plan, processing and analysis of data,

reporting the findings. This study will basically be of Descriptive nature.

Though it will be explorative to some extent, where it will use questionnaire,

schedule and oral interview. Study will be analytical also that includes survey, and fact

finding enquiries. Since no prior assumption was made regarding the consumers

perception even no hypothesis was formulated.

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Banking Industry which is basically my concern industry around which my project

has to be revolved is really a very complex industry. And to work for this was really a

complex and hectic task and few times I felt so frustrated that I thought to left the

project and go for any new industry and new project. Challenges which I faced while

doing this project were following-

• Banking sector was quite similar in offering and products and because of that it

was very difficult to discriminate between our product and products of the

competitors.

• Target customers and respondents were too busy persons that to get their time

and view for specific questions was very difficult.

• Sensitivity of the industry was also a very frequent factor which was very

important to measure correctly.

• Area covered for the project while doing job also was very large and it was very

difficult to correlate two different customers/respondents views in a one.

• Every financial customer has his/her own need and according to the

requirements of the customer product customization was not possible.

• So above challenges some time forced me to leave the project but any how I did

my project in all circumstances. Basically in this project I analyzed that-

Customer awareness towards retail banking in IDBI bank.

• Limitations of this research are given time is lesser than required; cost is also a

limitation because while giving the feedback they might not take the survey or

Questionnaires seriously and research is only confined to Jaipur city.

7

a

8

INDUSTRY PROFILE

The Banking Regulation Act 1949 defines banking as accepting the purpose of lending

or investment, of deposits of money from the public, repayable on demand or

otherwise and wthdrawable by cheque, draft, order otherwise. The essential function of

a bank is to provide services related to the storing of value and the extending credit.

The evolution of banking dates back to the earliest writing, and continues in the

present where a bank is a financial institution that provides banking and other financial

services. Currently the term bank is generally understood an institution that holds a

banking license. Banking licenses are granted by financial supervision authorities and

provide rights to conduct the most fundamental banking services such as accepting

deposits and making loans. There are also financial institutions that provide certain

banking services without meeting the legal definition of a bank, a so called non-bank.

Banks are a subset of the financial services industry. The word “Bank” is derived from

the Italian word ‘banco’ signifying a bench, which was erected in the market place,

where it was customary to exchange money; the first bench having been established in

Italy a.d. 808. The basic functions of banks are to accept deposits, lend money and act

as collecting and paying agents. The Bank of Barcelona in Spain (1401) was perhaps

the first institution that could be called a bank in this sense. The terms bankrupt and

"broke" are similarly derived from banca rotta , which refers to an out of business bank,

having its bench physically broken. Money lenders in Northern Italy originally did

business in open areas, or big open rooms, with each lender working from his own

bench or table. Typically, a bank generates profits from transaction fees on financial

services or the interest spread on resources it holds in trust for clients while paying

them interest on the asset.

HISTORY OF THE INDIAN BANKING SECTOR

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Banking in India has its origin as early as the Vedic period. It is believed that the

transition from money lending to banking must have occurred even before Manu, the

great Hindu Jurist, who has devoted a section of his work to deposits and advances

and laid down rules relating to rates of interest.

During the Mogul period, the indigenous bankers played a very important role in

lending money and financing foreign trade and commerce. During the days of the East

India Company, it was the turn of the agency houses to carry on the banking business.

The General Bank of India was the first Joint Stock Bank to be established in the year

1786. The others which followed were the Bank of Hindustan and the Bengal Bank.

The Bank of Hindustan is reported to have continued till 1906 while the other two failed

in the meantime. In the first half of the 19 th century the East India Company

established three banks; the Bank of Bengal in 1809, the Bank of Bombay in 1840 and

the Bank of Madras in 1843. These three banks also known as Presidency Banks,

were independent units and functioned well. These three banks were amalgamated in

1920 and a new bank, the Imperial Bank of India was established on 27 th January

1921.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The

Comptoire d’Escompte de Paris opened a branch in Calcutta in 1860, and another in

Bombay in 1862; branches in Madras and Pondicherry, then a French colony,

followed. Calcutta was the most active trading port in India, mainly due to the trade of

the British Empire, and so became a banking center.The fervour of Swadeshi

movement lead to establishing of many private banks in Dakshina Kannada and Udupi

district which were unified earlier and known by the name South Canara ( South

Kanara ) district. Four nationalised banks started in this district and also a leading

private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle

of Indian Banking".

With the passing of the State Bank of India Act in 1955 the undertaking of the Imperial

Bank of India was taken over by the newly constituted State Bank of India.The

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Reserve Bank which is the Central Bank was created in 1935 by passing Reserve

Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks

with Indian management were established in the country namely, Punjab National

Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda

Ltd, The Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country

were nationalized and in 15th April 1980, six more commercial private sector banks

were also taken over by the government.

Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks

(that is with the Government of India holding a stake), 29 private banks (these do not

have government stake; they may be publicly listed and traded on stock exchanges)

and 31 foreign banks. They have a combined network of over 53,000 branches and

17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public

sector banks hold over 75 percent of total assets of the banking industry, with the

private and foreign banks holding 18.2% and 6.5% respectively.

From World War I to Independence:

The period during the First World War (1914-1918) through the end of the Second

World War (1939-1945), and two years thereafter until the independence of India were

challenging for Indian banking. The years of the First World War were turbulent, and it

took its toll with banks simply collapsing despite the Indian economy gaining indirect

boost due to war-related economic activities. At least 94 banks in India failed between

1913 and 1918.

Post-independence:

The partition of India in 1947 adversely impacted the economies of Punjab and West

Bengal, paralyzing banking activities for months. India's independence marked the end

of a regime of the Laissez-faire for the Indian banking. The Government of India

initiated measures to play an active role in the economic life of the nation, and the

Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed

economy. This resulted into greater involvement of the state in different segments of

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the economy including banking and finance. The major steps to regulate banking

included:

• In 1948, the Reserve Bank of India, India's central banking authority, was

nationalized, and it became an institution owned by the Government of India.

• In 1949, the Banking Regulation Act was enacted which empowered the

Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in

India."

• The Banking Regulation Act also provided that no new bank or branch of an

existing bank could be opened without a license from the RBI, and no two banks

could have common directors.

However, despite these provisions, control and regulations, banks in India except the

State Bank o India, continued to be owned and operated by private persons. This

changed with the nationalization of major banks in India on 19 July, 1969.

Nationalization:

By the 1960s, the Indian banking industry has become an important tool to facilitate

the development of the Indian economy. At the same time, it has emerged as a large

employer, and a debate has ensued about the possibility to nationalize the banking

industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the

Government of India in the annual conference of the All India Congress Meeting in a

paper entitled "Stray thoughts on Bank Nationalization." The paper was received with

positive enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued

an ordinance and nationalized the 14 largest commercial banks with effect from the

midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described

the step as a "masterstroke of political sagacity." Within two weeks of the issue of the

ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of

Undertaking) Bill, and it received the presidential approval on 9 August, 1969.

A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit

delivery. With the second dose of nationalization, the GOI controlled around 91% of

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the banking business of India. Later on, in the year 1993, the government merged New

Bank of India with Punjab National Bank. It was the only merger between nationalized

banks and resulted in the reduction of the number of nationalized banks from 20 to 19.

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer

to the average growth rate of the Indian economy.

The nationalized banks were credited by some, including Home minister P.

Chidambaram, to have helped the Indian economy withstand the global financial crisis

of 2007-2009.

Liberalization:

In the early 1990s, the then Narsimha Rao government embarked on a policy of

liberalization, licensing a small number of private banks. These came to be known as

New Generation tech-savvy banks, and included Global Trust Bank (the first of such

new generation banks to be set up), which later amalgamated with Oriental Bank of

Commerce, UTI Bank(now re-named as Axis Bank), ICICI Bank and HDFC Bank. This

move, along with the rapid growth in the economy of India, revitalized the banking

sector in India, which has seen rapid growth with strong contribution from all the three

sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been setup with the proposed relaxation in

the norms for Foreign Direct Investment, where all Foreign Investors in banks may be

given voting rights which could exceed the present cap of 10%,at present it has gone

up to 49% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of

functioning. The new wave ushered in a modern outlook and tech-savvy methods of

working for traditional banks. All this led to the retail boom in India. People not just

demanded more from their banks but also received more.

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Currently, banking in India is generally fairly mature in terms of supply, product range

and reach-even though reach in rural India still remains a challenge for the private

sector and foreign banks. In terms of quality of assets and capital adequacy, Indian

banks are considered to have clean, strong and transparent balance sheets relative to

other banks in comparable economies in its region. The Reserve Bank of India is an

autonomous body, with minimal pressure from the government. The stated policy of

the Bank on the Indian Rupee is to manage volatility but without any fixed exchange

rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-

especially in its services sector-the demand for banking services, especially retail

banking, mortgages and investment services are expected to be strong. One may also

expect M&As, takeovers, and asset sales.

INDIAN BANKING SYSTEM

Introduction

The Reserve Bank of India (RBI) is India's central bank. It is the sole authority for

issuing bank notes and the supervisory body for banking operations in India. It

supervises and administers exchange control and banking regulations, and

administers the government's monetary policy. It is also responsible for granting

licenses for new bank branches. Though the banking industry is currently dominated

by public sector banks, numerous private and foreign banks exist. India's government-

owned banks dominate the market. Their performance has been mixed, with a few

being consistently profitable. Several public sector banks are being restructured, and in

some the government either already has or will reduce its ownership.

Private and foreign banks

The RBI has granted operating approval to a few privately owned domestic banks; of

these many commenced banking business. Foreign banks operate more than 150

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branches in India. The entry of foreign banks is based on reciprocity, economic and

political bilateral relations. An inter-departmental committee approves applications for

entry and expansion.

Capital adequacy norm

Foreign banks were required to achieve an 8 percent capital adequacy norm by March

1993, while Indian banks with overseas branches had until March 1995 to meet that

target. All other banks had to do so by March 1996. The banking sector is to be used

as a model for opening up of India's insurance sector to private domestic and foreign

participants, while keeping the national insurance companies in operation.

The banking system has three tiers. These are the scheduled commercial banks; the

regional rural banks which operate in rural areas not covered by the scheduled banks;

and the cooperative and special purpose rural banks.

Scheduled and non scheduled banks

There are approximately 80 scheduled commercial banks, Indian and foreign; almost

200 regional rural banks; more than 350 central cooperative banks, 20 land

development banks; and a number of primary agricultural credit societies. In terms of

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

banks, dominate the banking sector.

Local financing

All sources of local financing are available to foreign-participation companies

incorporated in India, regardless of the extent of foreign participation. Under foreign

exchange regulations, foreigners and non-residents, including foreign companies,

require the permission of the Reserve Bank of India to borrow from a person or

company resident in India

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Regulations on foreign banks

Foreign banks in India are subject to the same regulations as scheduled banks. They

are permitted to accept deposits and provide credit in accordance with the banking

laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in

India. Foreign bank branches in India finance trade through their global networks.

RBI restrictions

The Reserve Bank of India lays down restrictions on bank lending and other activities

with large companies. These restrictions, popularly known as "consortium guidelines"

seem to have outlived their usefulness, because they hinder the availability of credit to

the non-food sector and at the same time do not foster competition between banks.

Indian vs. foreign banks

Most Indian banks are well behind foreign banks in the areas of customer funds

transfer and clearing systems. They are hugely over-staffed and are unlikely to be able

to compete with the new private banks that are now entering the market. While these

new banks and foreign banks still face restrictions in their activities, they are well-

capitalized, use modern equipment and attract high-caliber employees.

Government and RBI regulations

All commercial banks face stiff restrictions on the use of both their assets and liabilities

Forty percent of loans must be directed to "priority sectors" and the high liquidity ratio

and cash reserve requirements severely limit the availability of deposits for lending.

The RBI requires that domestic Indian banks make 40 percent of their loans at

confessional rates to priority sectors' selected by the government. These sectors

consist largely of agriculture, exporters, and small businesses. Since July 1993, foreign

banks have been required to make 32 percent of their loans to these priority sector.

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

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(minimum of 10 percent) and exports (minimum of 12 percent) have been fixed.

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

loans to the agricultural sector.

The urge to merge:

In the recent past there has been a lot of talk about Indian Banks lacking in scale and

size. The State Bank of India is the only bank from India to make it to the list of Top

100 banks, globally. Most of the PSBs are either looking to pick up a smaller bank or

waiting to be picked up by a larger bank. The central government also seems to be

game about the issue and is seen to be encouraging PSBs to merge or acquire other

banks. Global evidence seems to suggest that even though there is great enthusiasm

when companies merge or get acquired, majority of the mergers/acquisitions do not

really work. So in the zeal to merge with or acquire another bank the PSBs should not

let their common sense take a back seat.

DEVELOPMENTS IN BANKING SYSTEM

SOCIAL CONTROL OF BANK

Indian banking structure has grown considerably in strength and stability due to the

vigorous control and effective monitoring by reserve bank of India. However, Order to

remove the deficiency pointed above, the Government introduced a scheme of social

control of banks. According to the Banking Commission (1972), the social control

scheme was introduced with the main objective of “achieving a wider spread of bank

credit flow to priority sectors and making it a more effective instrument of

development .

NATIONALISATION OF BANKS

Despite of scheme of social control there was no significant reorientation of lending

activities of banks towards meeting the requirements of priority sector like agriculture.

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This resulted in nationalization of 14 major commercial banks with individual deposits

exceeding Rs.50 crores in July 1969.

The major objective of nationalization were

• Reduction in concentration of economic power in hands of a few.

• Expansion of credit to priority areas, which were hitherto neglected like

agriculture, small-scale industries and self, employed people.

• Elimination of the use of bank credit for speculative and unproductive purpose.

• To provide a professional bent to bank management and encourage upcoming

entrepreneurs.

At the time of nationalization, the 14 major banks had a paid up capital of Rs. 28.5

crores, deposits of Rs. 2626 crores, advances Rs. 1813 crores and 4134 branches.

In other words the nationalized banks accounted for 80% of branches, 83% of

deposits and 84% of advances of the whole banking system.

The Banks nationalized in 1969 were: -

• Allahabad Bank

• Andhra Bank

• Bank of Baroda

• Bank of India

• Canara Bank

• Central Bank of India

• Dena Bank

• Indian Bank

• Indian Overseas Bank

• Punjab National Bank

• United Commercial Bank

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• Union Bank of India

• Syndicate Bank

• Bank of Maharashtra

REGIONAL RURAL BANKS

The RRBs were established with a view to combining the local feel and familiarity

with rural problems. The RRBs are primarily sponsored by the commercial

banks.The primary objectives of these banks are:

• Providing credit for agricultural purposes to small entrepreneurs engaged in

trade and industry and other productive activities in rural areas.

• To cater the needs weaker sections of the community.

SECOND NATIONALISATION

In order to move effectively, meet the growing development needs of the economy

and to promote welfare of people on the large scale six more commercial banks

with Demand and Time Liabilities (Deposits) with 200 cr were nationalized in April

1980. With the second nationalization, the number of public sector banks

increased to 28 (1st nationalization 14 banks, 2nd nationalization 6 bank and SBI and

its seven associate banks).

Over the years with the directional change that has occurred in the banking system

and the fact that the banks responding favorably by evolving new strategies and

innovative ideas the credit structure of the country has become strong and steady.

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Recognizing the fact that the banks are vital catalytic agents of growth that provide

the basic input of credit, new programmes with the social orientation have been

designed with a view to assist the society.

The names six banks nationalized were as under:

1. Corporation Bank

2. Oriental Bank of Commerce

3. Punjab & Sind Bank

4. Vijaya Bank

5. Andhra Bank

6. New bank of India

After the nationalization of major banks the position altered rapidly and the flow of

credit to the rural areas increased considerably. Along with quantitative expansion

of branch network, there were qualitative improvements in the lending practices of

the banks. The phenomenal change in the lending practices can be termed as a

transformation from class banking to mass banking. In fact the broader national

objectives of eradication of poverty, unemployment and growth with social justice

have shaped the formulation of various directives/ schemes.

CURRENT SCENARIO

The Indian has finally worked up to the competitive dynamics of new Indian market and

is addressing the relevant issues take on the multifarious challenges of globalization.

Banks that employ IT solutions are perceived to be futuristic and proactive players

capable of meeting the multifarious requirement of large customer base. Private Banks

have been fast on the uptake and are reorienting their strategies using the Internet as

a medium.

The Indian banking has come from a long from being a sleepy business institution to a

highly proactive and dynamic entity this transformation has been largely brought by the

large dose of liberalization and economic reforms that allowed exploring new business

opportunities rather than generating revenues from conventional streams.

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The Indian industry has confidently hit the growth trial that pick in activity is best

reflected in the banking sector which after all is as candid a mirror of a country’s

economy as you could ever find. Most of the Indian financial intermediaries have been

keeping pace with the deepening market economy, riding the opportunity that come

along with reforms even as they brace themselves for increased competition both

foreign and private by strengthening prudential norms and leveraging technology to

ensure that growth engine hums smoothly along

The essential function of a bank is to provide services related to the storing of value

and the extending credit. The evolution of banking dates back to the earliest writing,

and continues in the present where a bank is a financial institution that provides

banking and other financial services. Currently the term bank is generally understood

an institution that holds a banking license.

Banking licenses are granted by financial supervision authorities and provide rights to

conduct the most fundamental banking services such as accepting deposits and

making loans. There are also financial institutions that provide certain banking services

without meeting the legal definition of a bank, a so called non-bank. Banks are a

subset of the financial services industry.

The word bank is derived from the italian banca, which is derived from German and

means bench. The terms bankrupt and "broke" are similarly derived from banca rotta,

which refers to an out of business bank, having its bench physically broken. Money

lenders in Northern Italy originally did business in open areas, or big open rooms, with

each lender working from his own bench or table.

Typically, a bank generates profits from transaction fees on financial services or the

interest spread on resources it holds in trust for clients while paying them interest on

the asset.

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Services typically offered by banks

Although the type of services offered by a bank depends upon the type of bank and the

country, services provided usually include:

• Directly take deposits from the general public and issue checking and saving

accounts.

• Lend out money to companies and individuals (see money lender)

• Cash checks.

• Facilitate money transactions such as wire transfers and cashiers checks

• Issue credit cards, ATM, and debit cards and online banking.

• Storage of valuables, particularly in a safe deposit box.

Types of banks

There are several different types of banks including:

Central banks usually control monetary policy and may be the lender of last resort in

the event of a crisis. They are often charged with controlling the money supply,

including printing paper money. Examples of central banks are the European Central

Bank and the US Federal Reserve Bank.

Investment banks underwrite stock and bond issues and advice on mergers. Examples

of investment banks are Goldman Sachs of the USA or Nomura Securities of Japan.

Merchant banks were traditionally banks which engaged in trade financing. The

modern definition, however, refers to banks which provide capital to firms in the form of

shares rather than loans. Unlike Venture capital firms, they tend not to invest in new

companies. Private banks manage the assets of the very rich. An example of a private

bank is the Union Bank of Switzerland. Savings banks write mortgages exclusively.

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Offshore banks are banks located in jurisdictions with low taxation and regulation, such

as Switzerland or the Channel Islands. Many offshore banks are essentially private

banks. Commercial banks primarily lend to businesses (corporate banking)

Retail banks primarily lend to individuals. An example of a retail bank is Washington

Mutual of the USA. Universal banks engage in several of these activities. For example,

Citigroup, a large American bank, is involved in commercial and retail lending; it owns

a merchant bank (Citicorp Merchant Bank Limited) and an investment bank (Salomon

Smith Barney); it operates a private bank (Citigroup Private Bank); finally, its

subsidiaries in tax-havens offer offshore banking services to customers in other

countries.

Banks are prone to crisis

The traditional bank has an inherent tendency to crisis. This is because the bank

borrows short term and lends leveraged long term. The sum of deposits and the bank's

capital will never equal more than a modest percentage of the loans the bank has

outstanding.

Even if liquidity is not a concern, if there is no run on the bank, banks can simply

choose a bad portfolio of loans, and lose more money than they have. The US Savings

and Loan Crisis in the late 1980s and early 1990s is such an incident.

Role in the money supply

A bank raises funds by attracting deposits, borrowing money in the inter-bank market,

or issuing financial instruments in the money market or a securities market. The bank

then lends out most of these funds to borrowers. However, it would not be prudent for

a bank to lend out all of its balance sheet. It must keep a certain proportion of its funds

in reserve so that it can repay depositors who withdraw their deposits.

Bank reserves are typically kept in the form of a deposit with a central bank. This

behaviour is called fractional-reserve banking and it is a central issue of monetary

policy. Some governments (or their central banks) restrict the proportion of a bank's

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balance sheet that can be lent out, and use this as a tool for controlling the money

supply. Even where the reserve ratio is not controlled by the government, a minimum

figure will still be set by regulatory authorities as part of banking supervision.

Regulation

The combination of the instability of banks as well as their important facilitating role in

the economy led to banking being thoroughly regulated. The amount of capital a bank

is required to hold is a function of the amount and quality of its assets.

Major banks are subject to the Basel Capital Accord promulgated by the Bank for

International Settlements. In addition, banks are usually required to purchase deposit

insurance to make sure smaller investors are not wiped out in the event of a bank

failure. Another reason banks are thoroughly regulated is that ultimately, no

government can allow the banking system to fail.

There is almost always a lender of last resort—in the event of a liquidity crisis (where

short term obligations exceed short term assets) some element of government will step

in to lend banks enough money to avoid bankruptcy.

How banks are viewed ?

Banks have a long history of being characterized as heartless, rapacious creditors,

hounding honest folk down on their luck for the last dime. See Populism. In United

States history, the National Bank was a major political issue during the presidency of

Andrew Jackson. Jackson fought against the bank as a symbol of greed and profit-

mongering, antithetical to the democratic ideals of the United States.

Profitability

Large banks in the United States are some of the most profitable corporations,

especially relative to the small market shares they have. This amount is even higher if

one counts the credit divisions of companies like Ford, which are responsible for a

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large proportion of those company's profits. For example, the largest bank, Citigroup,

which for the past 3 years has made more profit then any other company in the world,

has only a 5 percent market share.

Now if Citigroup were to be as dominant in its industry as a Home Depot, Starbucks,

or Wal Mart in their respective industries, with a 30 percent market share, it would

make more money than the top ten non-banking US industries combined. In the past

10 years in the United States, banks have taken many measures to ensure that they

remain profitable while responding to ever-changing market conditions.

First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge

with investment and insurance houses. Merging banking, investment, and insurance

functions allows traditional banks to respond to increasing consumer demands for "one

stop shopping" by enabling the crossing selling of products (which, the banks hope, will

also increase profitability).

Second, they have moved toward risk based pricing on loans, which mean charging

higher interest rates for those people who they deem more risky to default on loans.

This dramatically helps to offset the losses from bad loans, lowers the price of loans to

those who have better credit histories, and extends credit products to high risk

customers who would have been denied credit under the previous system.

Third, they have sought to increase the methods of payment processing available to

the general public and business clients. These products include debit cards, pre-paid

cards, smart-cards, and credit cards. These products make it easier for consumers to

conveniently make transactions and smooth their consumption over time (in some

countries with under-developed financial systems, it is still common to deal strictly in

cash, including carrying suitcases filled with cash to purchase a home).

However, with convenience there is also increased risk that consumers will mis-

manage their financial resources and accumulate excessive debt. Banks make money

from card products through interest payments and fees charged to consumers and

companies that accept the cards. The banks' main obstacles to increasing profits are

25

exisiting regularory burdens, new government regulation, and increasing competition

from non-traditional financial institutions.

26

IDBI bank: all about-

The economic development of any country depends on the extent to which its financial

system efficiently and effectively mobilizes and allocates resources. There are a

number of banks and financial institutions that perform this function; one of them is the

development bank. Development banks are unique financial institutions that perform

the special task of fostering the development of a nation, generally not undertaken by

other banks. Development banks are financial agencies that provide medium-and long-

term financial assistance and act as catalytic agents in promoting balanced

27

development of the country. They are engaged in promotion and development of

industry, agriculture, and other key sectors. They also provide development services

that can aid in the accelerated growth of an economy.

The objectives of development banks are:

• To serve as an agent of development in various sectors, viz. industry,

agriculture, and international trade

• To accelerate the growth of the economy

• To allocate resources to high priority areas

• To foster rapid industrialization, particularly in the private sector, so as to

provide employment opportunities as well as higher production

• To develop entrepreneurial skills

• To promote the development of rural areas

28

• To finance housing, small scale industries, infrastructure, and social utilities.

Function-

The IDBI has been established to perform the following functions-

(1) To grant loans and advances to IFCI, SFCs or any other financial institution by way

of refinancing of loans granted by such institutions which are repayable within 25 year?

(2) To grant loans and advances to scheduled banks or state co-operative banks by

way of refinancing of loans granted by such institutions which are repayable in 15

years?

(3) To grant loans and advances to IFCI, SFCs, other institutions, scheduled banks,

state co-operative banks by way of refinancing of loans granted by such institution to

industrial concerns for exports.

(4) To discount or rediscount bills of industrial concerns.

(5) To underwrite or to subscribe to shares or debentures of industrial concerns.

(6) To subscribe to or purchase stock, shares, bonds and debentures of other financial

institutions.

(7) To grant line of credit or loans and advances to other financial institutions such as

IFCI, SFCs, etc.

(8) To grant loans to any industrial concern.

(9) To guarantee deferred payment due from any industrial concern.

(10) To guarantee loans raised by industrial concerns in the market or from

institutions.

29

(11) To provide consultancy and merchant banking services in or outside India.

(12) To provide technical, legal, marketing and administrative assistance to any

industrial concern or person for promotion, management or expansion of any industry.

(13) Planning, promoting and developing industries to fill up gaps in the industrial

structure in India.

(14) To act as trustee for the holders of debentures or other securities.

In addition, they are assigned a special role in:

• Planning, promoting, and developing industries to fill the gaps in industrial

sector.

• Coordinating the working of institutions engaged in financing, promoting or

developing industries, agriculture, or trade, rendering promotional services such

as discovering project ideas, undertaking feasibility studies, and providing

technical, financial, and managerial assistance for the implementation of

projects

Subsidiaries-

The following are the subsidiaries of IDBI.

(1) Small Industries Development Bank of India (SIDBI)

(2) IDBI Bank Ltd.

(3) IDBI Capital Market Services Ltd.

(4) IDBI Investment Management Company

30

Industrial development bank of India

The industrial development bank of India(IDBI) was established in 1964 by parliament

as wholly owned subsidiary of reserve bank of India. In 1976, the bank’s ownership

was transferred to the government of India. It was accorded the status of principal

financial institution for coordinating the working of institutions at national and state

levels engaged in financing, promoting, and developing industries. IDBI has provided

assistance to development related projects and contributed to building up substantial

capacities in all major industries in India. IDBI has directly or indirectly assisted all

companies that are presently reckoned as major corporate in the country. It has played

a dominant role in balanced industrial development.

IDBI set up the small industries development bank of India (SIDBI) as wholly owned

subsidiary to cater to specific the needs of the small-scale sector. IDBI has engineered

the development of capital market through helping in setting up of the securities

exchange board of India(SEBI), National stock exchange of India limited(NSE), credit

analysis and research limited(CARE), stock holding corporation of India

limited(SHCIL), investor services of India limited(ISIL), national securities depository

limited(NSDL), and clearing corporation of India limited(CCIL)

In 1992, IDBI accessed the domestic retail debt market for the first time by issuing

innovative bonds known as the deep discount bonds. These new bonds became highly

popular with the Indian investor.

In 1994, IDBI Act was amended to permit public ownership up to 49 per cent. In July

1995, it raised over Rs 20 billion in its first initial public (IPO) of equity, thereby

reducing the government stake to 72.14 per cent. In June 2000, a part of government

shareholding was converted to preference capital. This capital was redeemed in March

31

2001, which led to a reduction in government stake. The government stake currently is

51 per cent.

In august 2000, IDBI became the first all India financial institution to obtain ISO 9002:

1994 certification for its treasury operations. It also became the first organization in the

Indian financial sector to obtain ISO 9001:2000 certifications for its forex services.

Milestones

• July 1964: Set up under an Act of Parliament as a wholly-owned subsidiary of

Reserve Bank of India.

• February 1976: Ownership transferred to Government of India. Designated

Principal Financial Institution for co-coordinating the working of institutions at

national and State levels engaged in financing, promoting and developing

industry.

• March 1982: International Finance Division of IDBI transferred to Export-Import

Bank of India, established as a wholly-owned corporation of Government of

India, under an Act of Parliament.

• April 1990: Set up Small Industries Development Bank of India (SIDBI) under

SIDBI Act as a wholly-owned subsidiary to cater to specific needs of small-scale

sector. In terms of an amendment to SIDBI Act in September 2000, IDBI

divested 51% of its shareholding in SIDBI in favour of banks and other

institutions in the first phase. IDBI has subsequently divested 79.13% of its

stake in its erstwhile subsidiary to date.

• January 1992: Accessed domestic retail debt market for the first time with

innovative Deep Discount Bonds; registered path-breaking success.

• December 1993: Set up IDBI Capital Market Services Ltd. as a wholly-owned

subsidiary to offer a broad range of financial services, including Bond Trading,

Equity Broking, Client Asset Management and Depository Services. IDBI Capital

is currently a leading Primary Dealer in the country.

32

• September 1994: Set up IDBI Bank Ltd. in association with SIDBI as a private

sector commercial bank subsidiary, a sequel to RBI's policy of opening up

domestic banking sector to private participation as part of overall financial sector

reforms.

• October 1994: IDBI Act amended to permit public ownership upto 49%.

• July 1995: Made Initial Public Offer of Equity and raised over Rs.2000 crore,

thereby reducing Government stake to 72.14%.

• March 2000:Entered into a JV agreement with Principal Financial Group, USA

for participation in equity and management of IDBI Investment Management

Company Ltd., erstwhile a 100% subsidiary. IDBI divested its entire

shareholding in its asset management venture in March 2003 as part of overall

corporate strategy.

• March 2000: Set up IDBI Intech Ltd. as a wholly-owned subsidiary to undertake

IT-related activities.

• June 2000: A part of Government shareholding converted to preference capital,

since redeemed in March 2001; Government stake currently 58.47%.

• August 2000: Became the first All-India Financial Institution to obtain ISO

9002:1994 Certification for its treasury operations. Also became the first

organization in Indian financial sector to obtain ISO 9001:2000 Certification for

its forex services.

• March 2001: Set up IDBI Trusteeship Services Ltd. to provide technology-

driven information and professional services to subscribers and issuers of

debentures.

• February 2002: Associated with select banks/institutions in setting up Asset

Reconstruction Company (India) Limited (ARCIL), which will be involved with

the

33

• Strategic management of non-performing and stressed assets of Financial

Institutions and Banks.

• September 2003: IDBI acquired the entire shareholding of Tata Finance

Limited in Tata Home finance Ltd, signaling IDBI's foray into the retail finance

sector. The housing finance subsidiary has since been renamed 'IDBI Home

finance Limited'.

• December 2003: On December 16, 2003, the Parliament approved The

Industrial Development Bank (Transfer of Undertaking and Repeal Bill) 2002 to

repeal IDBI Act 1964. The President's assent for the same was obtained on

December 30, 2003. The Repeal Act is aimed at bringing IDBI under the

Companies Act for investing it with the requisite operational flexibility to

undertake commercial banking business under the Banking Regulation Act

1949 in addition to the business carried on and transacted by it under the IDBI

Act, 1964.

• July 2004: The Industrial Development Bank (Transfer of Undertaking and

Repeal) Act 2003 came into force from July 2, 2004.

• July 2004: The Boards of IDBI and IDBI Bank Ltd. take in-principle decision

regarding merger of IDBI Bank Ltd. with proposed Industrial Development Bank

of India Ltd. in their respective meetings on July 29, 2004.

• September 2004: The new entity "Industrial Development Bank of India" was

incorporated on September 27, 2004 and Certificate of commencement of

business was issued by the Registrar of Companies on September 28, 2004.

• September 2004:Notification issued by Ministry of Finance specifying SASF as

a financial institution under Section 2(h)(ii) of Recovery of Debts due to Banks &

Financial Institutions Act, 1993.

• September 2004:Notification issued by Ministry of Finance on September 29,

2004 for issue of non-interest bearing GoI IDBI Special Security, 2024,

aggregating Rs.9000 crore, of 20-year tenure.

34

• September 2004: Notification for appointed day as October 1, 2004, issued by

Ministry of Finance on September 29, 2004.

• September 2004:RBI issues notification for inclusion of Industrial Development

Bank of India Ltd. in Schedule II of RBI Act, 1934 on September 30, 2004.

• October 2004: Appointed day - October 01, 2004 - Transfer of undertaking of

IDBI to IDBI Ltd. IDBI Ltd. commences operations as a banking company. IDBI

Act, 1964 stands repealed

• January 2005: The Board of Directors of IDBI Ltd., at its meeting held on

January 20, 2005, approved the Scheme of Amalgamation, envisaging merging

of IDBI Bank Ltd. with IDBI Ltd. Pursuant to the scheme approved by the

Boards of both the banks, IDBI Ltd. will issue 100 equity shares for 142 equity

shares held by shareholders in IDBI Bank Ltd. EGM has been convened on

February 23, 2005 for seeking shareholder approval for the scheme.

BOARD MEMBERS

Shri Yogesh Agarwal, CMD

Shri O.V. Bundellu, DMD

Shri Jitender Balakrishnan, DMD

35

Shri Arun Ramanathan, Finance Secretary

Shri Ajay Shankar, Secretary (IPP)

Shri K. Narasimha Murthy

Shri H.L. Zutshi

Shri Analjit Singh

Smt. Lila Firoz Poonawalla

Shri A. Sakthivel

Shri Subhash Tuli

36

Profile Of IDBI Bank-

Industrial Development Bank came into existence with the Enactment of Parliamentary

Act in July 1964 as a subsidiary of Reserve Bank of India. The ownership vesting with

the Government of India. It was Designated Principal Institution for coordinating the

working of institutions at national and state level engaged in financing, promoting and

developing Industry. With the Government opening up of Domestic Banking sector to

private participation as part of overall financial sector reforms, in September 94,

Industrial Development bank in association with its subsidiary SIDBI, set up IDBI Bank

Ltd as a private sector commercial bank.

This initiative has blossomed into a major success story. IDBI bank, which began with

an equity capital of Rs 1000 million, commenced its first branch at Indore in November

1995. Thereafter in less than seven years the bank has attained a front ranking

position in the Indian Banking Industry. IDBI Bank successfully completed its public

issue in February 99, which led to its paid up capital expanding to Rs 1400 million.

On December 16, 2003 the parliament approved the Industrial Development bank

(Transfer of Undertaking and Repeal Bill) 2002 to repeal IDBI Act 1964. The Repeal

Act is aimed at Bringing IDBI under the companies Act for investing it with the requisite

operational flexibility to undertake commercial banking business under the Banking

Regulation Act 1949 in addition to the business carried on and Transacted by it under

the IDBI Act 1964. The New act came into force in July 2004.

The Board of Both IDBI and IDBI Bank decided to merger both the entities and to form

Industrial Development Bank of India. (IDBI Ltd.)The Merged entity became one the

Largest Financial Institution. With the Strength of the Parent company the Bank plans

to expand its network and grow on a large scale.

37

• Number of Branches: 453

• Number of Extension Counters:6

• Number of ATM s: 536

• Presence in 256 centres.

Industrial Development Bank of India Limited, now more popularly known as IDBI

Bank, was established as a wholly-owned subsidiary of Reserve Bank of India. The

foundation of the bank was laid down under an Act of Parliament, in July 1964. The

main aim behind the setting up of IDBI was to provide credit and other facilities for the

Indian industry, which was still in the initial stages of growth and development.

In February 1976, the ownership of IDBI was transferred to Government of India.

After the transfer of its ownership, IDBI became the main institution, through which the

institutes engaged in financing, promoting and developing industry were to be

coordinated. In January 1992, IDBI accessed domestic retail debt market for the first

time, with innovative Deep Discount Bonds, and registered path-breaking success. The

following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned

subsidiary, to offer a broad range of financial services, including Bond Trading, Equity

Broking, Client Asset Management and Depository Services.

In September 1994, in response to RBI's policy of opening up domestic banking sector

to private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI. In July

1995, public issue of the bank was taken out, after which the Government's

shareholding came down (though it still retains majority of the shareholding in the

bank).

In September 2003, IDBI took over Tata Home Finance Ltd, renamed ‘IDBI Home

finance Limited’, thus diversifying its business domain and entering the arena of retail

finance sector.

The year 2005 witnessed the merger of IDBI Bank with the Industrial Development

38

Bank of India Ltd. The new entity continued to its development finance role, while

providing an array of wholesale and retail banking products (and does so till date).

The following year, IDBI Bank acquired United Western Bank (which, at that time, had

230 branches spread over 47 districts, in 9 states). In the financial year of 2008, IDBI

Bank had a net income of Rs 9415.9 crores and total assets of Rs 120,601 crores.

The Present

Today, IDBI Bank is counted amongst the leading public sector banks of India, apart

from claiming the distinction of being the 4th largest bank, in overall ratings. It is

presently regarded as the tenth largest development bank in the world, mainly in terms

of reach. This is because of its wide network of 509 branches, 900 ATMs and 319

centers. Apart from being involved in banking services, IDBI has set up institutions like

The National Stock Exchange of India (NSE), The National Securities Depository

Services Ltd. (NSDL) and the Stock Holding Corporation of India (SHCIL).

RETAIL BANKING

Service with a smile: Today’s finicky banking customers will settle for nothing less. The

customer has come to realize somewhat belatedly that he is the king. The customer’s

choice of one entity over another as his principal bank is determined by considerations

of service quality rather than any other factor. He wants competitive loan rates but at

the same time also wants his loan or credit card application processed in double quick

time. He insists that he be promptly informed of changes in deposit rates and service

charges and he bristles with ‘customary rage’ if his bank is slow to redress any

grievance he may have. He cherishes the convenience of impersonal net banking but

during his occasional visits to the branch he also wants the comfort of personalized

human interactions and facilities that make his banking experience pleasurable. In

short he wants financial house that will more than just clear his cheque and updates

his passbook: he wants a bank that cares and provides great services. So, do banks

39

meet these heightened expectations? Is there a gap that exists between the

management perception and the customer perception with reference to the services

offered in Retail Banking?

The Retail Banking environment today is changing fast. The changing customer

demographics demands to create a differentiated application based on scalable

technology, improved service and banking convenience. Higher penetration of

technology and increase in global literacy levels has set up the expectations of the

customer higher than never before. Increasing use of modern technology has further

enhanced reach and accessibility.

The market today gives us a challenge to provide multiple and innovative

contemporary services to the customer through a consolidated window as so to ensure

that the bank’s customer gets “Uniformity and Consistency” of service delivery across

time and at every touch point across all channels. The pace of innovation is

accelerating and security threat has become prime of all electronic transactions. High

cost structure rendering mass-market servicing is prohibitively expensive.

Present day tech-savvy bankers are now more looking at reduction in their operating

costs by adopting scalable and secure technology thereby reducing the response time

to their customers so as to improve their client base and economies of scale

.

The solution lies to market demands and challenges lies in innovation of new offering

with minimum dependence on branches – a multi-channel bank and to eliminate the

disadvantage of an inadequate branch network. Generation of leads to cross sell and

creating additional revenues with utmost customer satisfaction has become focal point

worldwide for the success of a Bank.

40

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial

banks with individual customers, both on liabilities and assets sides of the balance

sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans

(e.g., personal, housing, auto, and educational) on the assets side, are the more

important of the products offered by banks. Related ancillary services include credit

cards, or depository services.

The issue of retail banking is extremely important and topical. Across the globe, retail

lending has been a spectacular innovation in the commercial banking sector in recent

years. The growth of retail lending, especially, in emerging economies, is attributable

to the rapid advances in information technology, the evolving macroeconomic

environment, financial market reform, and several micro-level demand and supply side

factors.

India too experienced a surge in retail banking. There are various pointers towards

this. Retail loan is estimated to have accounted for nearly one-fifth of all bank credit.

Housing sector is experiencing a boom in its credit. The retail loan market has

decisively got transformed from a sellers’ market to a buyers’ market. All these

emphasize the momentum that retail banking is experiencing in the Indian economy in

recent years.

Retail banking refers to provision of banking services to individuals and small

business where the financial institutions are dealing with large number of low value

transactions. The concept is not new to banks but is now viewed as an important and

attractive market segment that offers opportunities for growth and profits. Today’s retail

banking sector is characterized by three basic characteristics:

Multiple products (deposits, credit cards, insurance, investments and securities)

Multiple channels of distribution (call center, branch, and internet)

Multiple customer groups (consumer, small business, and corporate).

41

OBJECTIVES

To study on the Customer Satisfaction level on retail banking

To know the technical advancement benefits for customers.

To understand the operations and modalities of Retail banking

To study on the Impact of the Banking Crisis and the Flight to Quality

To study and analyze the concept of Customer Relationship

Management of banks in general.

To predict the future position of Retail banking in India

Concept of Retail Banking

The retail banking encompasses deposit and assets linked products as well as other

financial services offered to individual for personal consumption. Generally, the pure

retail banking is conceived to be the provision of mass banking products and services

to private individuals as opposed to wholesale banking which focuses on corporate

clients.

Over the years, the concept of retail banking has been expanded to include in many

cases the services provided to small and medium sized businesses. Some banks in

Europe even include their private banking business i.e. services to high net worth net

worth individuals in their retail banking portfolio.

The concept of Retail banking is not new to banks. It is only from past few years that it

is being viewed as an attractive market segment, which offers opportunities for growth

with profits. The diversified portfolio characteristic of retail banking gives better comfort

42

and spreads the essence of retail banking in individual customers. Though the term

retail banking and retail lending are often used synonymously, yet the later is lust one

side of retail banking. In retail banking, all the banking needs of individual customers

are taken care of in an integrated manner.

Review of Literature

Anil Dutta and Kirti Dutta in their paper reveal the expectations and perceptions of the

consumers across the three banking sectors in India. The study revealed that gap

varies across the banking sector with public sector banks showing the widest gap and

foreign banks showing a narrow gap. It is important for the service providers to know

the level of customer expectations so that they can meet and even exceed them to

gain maximum customer satisfaction .In the study of Mark Durkin et al., customer

satisfaction questionnaire was issued to over 2,000 retail customers. Twenty-five

senior branch bank managers were then asked to rank the same set of issues to

ascertain what they felt to be the key influencers to customer registration for internet

banking.

The three factors that the managers failed to identify, fell into two broad categories:

relationship management status and comfort with new technology .

Financial institutions are actively developing new electronic banking products for their

retail customers. To date, the market leaders have drawn a disproportionably higher

share of e-retail banking customers. In response, smaller institutions have become

quite active in exploring ways to participate profitably in online banking. A major

influence is from a customer relationship management (CRM) perspective, where

institutions try to limit the outflow of current customers and direct high-value customers

to potential products from a multi-product service offering array.

These efforts can succeed only if retail bank marketers focus the promotion of the new

products and services that can utilise this channel toward those customers who are

most likely to find them attractive (Don Sciglimpagli). The first aim of this study was to

43

examine the role that online and electronic banking play in defining the customer's

primary financial relationship. The analysis of 701 retail customers of a financial

institution presented in this study suggests that banks and other institutions are highly

vulnerable to loss of customers to rivals with extensive online services. A second aim

was to examine to what extent information on banking relationships is able to extend

CRM analysis beyond that offered by typical demographic and income data.

Current customer account relationships are found to be highly predictive of use of

electronic services use in general. And, interest in the use of specific online services is

related to differing customer relationships in addition to ordinary demographic and

balance information. These findings can be useful for retail banking in identifying

potential high-value users from a customer relationship management perspective .

The purpose of the paper by Aurto Molina is to investigate the impact of relational

benefits on customer satisfaction in retail banking. This paper presents a causal model

that identifies a connection between the relational benefits achieved through a stable

and long-term relationship with a given bank and customer satisfaction with retail

banking.

Based on a theoretical framework regarding the relationship between relational

benefits and customer satisfaction, an empirical study using a sample of 204 bank

customers was conducted, and the theoretical model is tested.

Multi-item indicators from prior studies were employed to measure the constructs of

interest, and the proposed relationships were tested using structural equations

modeling methods. The results show that confidence benefits have a direct, positive

effect on the satisfaction of customers with their bank. However, special treatment

benefits and social benefits did not have any significant effects on satisfaction in a

retail banking environment. The findings suggest that banks can create customer

satisfaction through relational strategies that focus on building customer confidence.

Therefore, frontline employees should be committed to establishing and maintaining

confidence benefits for customers. Thus the study provides useful information on the

44

relationship between customer satisfaction and specific relational benefits in retail

banking.

The important change drivers in most European retail banking systems are found to be

competition and IT developments. Two broad strategic themes are explored. The first

is the evolution of retail banking in a strategic marketing context from a supply focus

towards a much greater demand orientation. The second theme explored is the

intensifying strategic imperative towards a shareholder value culture.

The key features and strategic challenges of the `new' retail banking revolution are

finally summarized in the study of Gardener Edwar and Howcroft Barry .Due to

increasing competition in retail banking, understanding the customer perception about

service quality is becoming indispensable. The private sector banks are posing a very

stiff competition to the public sector banks through their initiatives for meeting

customer expectations and gaining a cutting edge. This is reflected by the increasing

market share and better profitability of private banks in comparison to that of public

sector banks.

At the same time, public sector banks have also responded to the challenges posed

by the private sector banks through conscious efforts to enhance their service quality.

This study (R.A.Ravi) compares public sector banks and private sector banks in terms

of user perception of their retail banking services.

In his article in Business Line T. B. Kapali, explains the perceived stability of the

income stream from the retail business is probably the most important driver of the

push into retail. Cross-country studies clearly point - increasing urbanization, rising

income levels; all indicating that the demand for retail finance will continue to be very

strong well into the future. ICICI or HDFC over the past few years does show the

stability which has been imparted to the overall revenue stream by the retail business.

With the growth of the Indian economy over the past few years, the retail banking

sector in India has also witnessed phenomenal growth. It has faced up to the need of

45

the hour and introduced anytime, anywhere banking, for its customers through ATMs,

mobile and internet banking. It has also offered services like D-MAT, plastic money

(credit and debit cards), online transfers, etc. The concept of CBS (Core Banking

Solution), which allows a customer to fulfill a wide range of banking operation online,

has come alive during the past few years. This has not only helped in reducing

operational costs but facilitated greater conveniences to its customers and so the

customer preferences have to be taken care of constantly in the retail banking

business.

In the age of consumerism, the customer is king. And the banking sector is latching on

to this mantra of sales and marketing. Although the sector is part of the service

industry, only recently have individual banks woken up to the fact that offering products

and services tailored to meet the customers' specific needs can actually bring in more

business. Banks today do much more than lend and borrow money.

The new-age private sector banks can be said to be the forerunners in offering such

customer-oriented service. Banks are even taking loans to the customers. Banks have

also become a one-stop shop for selling products such as mutual funds, insurance and

RBI bonds and offer service such as payment of utility bills and equity trading. Cross-

selling also helps banks personalise products for their customers.

For instance, banks give loans against insurance, or link deposit schemes to

insurance, depending on customer needs. The banks are converting to the age of

commoditised business i.e., Give the consumer a product and a reason to use it.

The rapid and provocative changes facing the retail sector seems to vary somewhat

from country to country, retail banks everywhere are working vigorously to address

new technological, regulatory and competitive realities. Collectively, they are trying to

determine strategies and tactics needed to secure their franchises and their futures.

The bank of the future will not win by creating a single strategy. Rather, each of its

activities within products, customer channels, and support services will be the subject

of a discreet "business unit" strategy, which will be benchmarked against market-

46

segmented customer demand and profitability, and competitors' businesses in this

area.

The above studies show that retail banking business will continue to be very strong,

well into the future. The increasing competition is compelling the service providers to

know the level of customer expectations and meet them. The studies also suggest that

the bank of the future will not win by creating a single strategy but focus on building

customer confidence and extensive online services.

The present study looks into understanding the customers’ perception towards the

retail banking and also their awareness regarding the various retail banking services.

What is Retail Banking?

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial

banks with individual customers, both on liabilities and assets sides of the balance

sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans

(e.g., personal, housing, auto, and educational) on the assets side, are the more

important of the products offered by banks. Related ancillary services include credit

cards, or depository services.

Today’s retail banking sector is characterized by three basic characteristics:

• Multiple products (deposits, credit cards, insurance, investments and securities);

• Multiple channels of distribution ( branch, internet); and

• Multiple customer groups (consumer, small business, and corporate).

Retail Banking in India:

47

Retail banking in India is not a new phenomenon. It has always been prevalent in India

in various forms. For the last few years it has become synonymous with mainstream

banking for many banks.

The typical products offered in the Indian retail banking segment are housing loans,

consumption loans for purchase of durables, auto loans, credit cards and educational

loans. The loans are marketed under attractive brand names to differentiate the

products offered by different banks. As the Report on Trend and Progress of India,

2003-04 has shown that the loan values of these retail lending typically range between

Rs.20,000 to Rs.100 lakh.

The loans are generally for duration of five to seven years with housing loans granted

for a longer duration of 15 years. Credit card is another rapidly growing sub-segment of

this product group.In recent past retail lending has turned out to be a key profit driver

for banks with retail portfolio constituting 21.5 per cent of total outstanding advances

as on March 2004. The overall impairment of the retail loan portfolio worked out much

less then the Gross NPA ratio for the entire loan portfolio. Within the retail segment,

the housing loans had the least gross asset impairment. In fact, retailing make ample

business sense in the banking sector.

Drivers of retail banking business in India

Some of the basic reasons which led to the retail banking growth are as follows:

First, economic prosperity and the consequent increase in purchasing power

has given a fillip to a consumer boom. During the 10 years after 1992, India's

48

economy grewat an average rate of 6.8 percent and continues to grow at almost

the same rate – not many countries in the world match this performance.

Second, changing consumer demographics indicate vast potential for growth in

consumption both qualitatively and quantitatively. India is one of the countries

having highest proportion (70%) of the population below 35 years of age (young

population). The BRIC report of the Goldman-Sachs, which predicted a bright

future for Brazil, Russia, India and China, mentioned Indian demographic

advantage as an important positive factor for India.

Third, technological factors played a major role. Convenience banking in the

form of debit cards, internet and phone-banking, anywhere and anytime banking

has attracted many new customers into the banking field. Technological

innovations relating to increasing use of credit / debit cards, ATMs, direct debits

and phone banking has contributed to the growth of retail banking in India.

Fourth, the treasury income of the banks, which had strengthened the bottom

lines of banks for the past few years, has been on the decline during the last

few years. In such a scenario, retail business provides a good vehicle of profit

maximization. Considering the fact that retail’s share in impaired assets is far

lower than the overall bank loans and advances, retail loans have put

comparatively less provisioning burden on banks apart from diversifying their

income streams.

Fifth, decline in interest rates have also contributed to the growth of retail credit

by generating the demand for such credit.

Opportunities and Challenges of Retail Banking in India

Retail banking has immense opportunities in a growing economy like India. As the

growth story gets unfolded in India, retail banking is going to emerge a major driver.

How does the world view us? As already referred to the BRIC Report, talking India as

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an economic superpower; A. T. Kearney, a global management consulting firm,

recently identified India as the "second most attractive retail destination" of 30

emergent markets.

The rise of the Indian middle class is an important contributory factor in this regard.

The percentage of middle to high income Indian households is expected to continue

rising. The younger population not only wields increasing purchasing power, but as far

as acquiring personal debt is concerned, they are perhaps more comfortable than

previous generations. Improving consumer purchasing power, coupled with more

liberal attitudes toward personal debt, is contributing to India's retail banking segment.

Global investors are attracted to India because of the growing number of well-

educated, English-speaking workers who are comfortable working in information

technology. India's IT work force will be augmented by a booming population of

engineering students. Furthermore, India's labor pool also serves as an expanding

customer base for retail bank products and services.

The development of India's economy is boosting overall consumer purchasing power.

The percentage of middle to high income Indian households is expected to continue

rising. The younger, more educated population not only wields increasing purchasing

power, but it is more comfortable than previous generations with acquiring personal

debt

The combination of the above factors promises substantial growth in the retail sector,

which at present is in the nascent stage. Due to bundling of services and delivery

channels, the areas of potential conflicts of interest tend to increase in universal banks

and financial conglomerates.

The challenges for the industry and its stakeholders are as follows:

First, retention of customers is going to be a major challenge. According to a

research by Reichheld and Sasser in the Harvard Business Review, 5 per cent

increase in customer retention can increase profitability by 35 per cent in

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banking business, 50 per cent in insurance and brokerage, and 125 per cent in

the consumer credit card market. Thus, banks need to emphasise on retaining

customers and increasing market share.

Second, rising indebtedness could turn out to be a cause for concern in the

future. India's position, of course, is not comparable to that of the developed

world where household debt as a proportion of disposable income is much

higher. Such a scenario creates high uncertainty. Expressing concerns about

the high growth witnessed in the consumer credit segments, the Reserve Bank

has, as a temporary measure, put in place risk containment measures and

increased the risk weight from 100 per cent to 125 per cent in the case of

consumer credit including personal loans and credit cards (Mid-term Review of

Annual Policy, 2004-05).

Third, information technology poses both opportunities and challenges. Even

with ATM machines and Internet Banking, many consumers still prefer the

personal touch of their neighbourhood branch bank. Technology has made it

possible to deliver services throughout the branch bank network, providing

instant updates to checking accounts and rapid movement of money for stock

transfers. However, this dependency on the network has brought IT

departments additional responsibilities and challenges in managing, maintaining

and optimizing the performance of retail banking networks. Illustratively,

ensuring that all bank products and services are available, at all times, and

across the entire organization is essential for today’s retails banks to generate

revenues and remain competitive. Besides, there are network management

challenges, whereby keeping these complex distributed networks and

applications operating properly in support of business objectives becomes

essential. Specific challenges include ensuring that account transaction

applications run efficiently between the branch offices and data centres.

Fourth, KYC Issues and money laundering risks in retail banking is yet another

important issue. Retail lending is often regarded as a low risk area for money

laundering because of the perception of the sums involved. However,

competition for clients may also lead to KYC procedures being waived in the bid

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for new business. Banks must also consider seriously the type of identification

documents they will accept and other processes to be completed. The Reserve

Bank has issued detailed guidelines on application of KYC norms in November

2004.

Reasons for the change over from Corporate Banking to Retail Banking:

The financial sector reforms undertaken by the Government since the

year 1991 have accelerated the process of disintermediation which has

encouraged blue chip corporate to access cheaper funds to meet their

working capital requirements directly from investors in India and abroad

through capital market instruments and external Commercial Borrowings

route thus by-passing Banks in the process. The deregulation of markets

and interest rates has lead to cut throat competition among Banks for

corporate loans making them to lend even at PLR or sub PLR and offer

other valued services at comparatively cheaper rates to big and high

value corporate. In the process, most of the banks have experienced

substantial reduction in interest spreads and drain on their profitability.

The introduction of stringent Asset Classification, Income Recognition

and provisioning norms has resulted in growing menace of NPAs in

corporate loans which has affected the asset quality, profitability and

capital adequacy of banks adversely. The risks involved in corporate

loans are very high as corporate have to keep all their eggs in one

basket. The risks involved in retail Banking advances are comparatively

less and well diversified as loan amounts are relatively small ranging

from Rs. 5000 to Rs. 100 lakh and repayable normally in short period of

3- years except housing loans (where repayment period is long up to 15

years in some cases) and from fixed source of income like salaries.

Whereas corporate loans give average return of just 0.5 to 1.5 percent

only, the retail advances offer attractive interest spread of 3to 4 percent,

because retail borrowers are less interest rate sensitive than the

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Corporate. Another reason for large interest spreads on retail advances

is that the retail customers are too fragmented to bargain effectively.

While corporate loans are subject to ups and downs in trade frequently,

retail loans are comparatively independent of recession and continue to

deliver even during the sluggish phase of economy.

Retail Banking gives a lot of stability and public image to banks as

compared to corporate banking.

The housing loans, which form the major chunk of retail lending and

where NPAs are the least, carry risk weight of just 50% for capital

adequacy purposes. This is likely to come down further as new Basel

Capital Accord or (Basel II) norms are put in place from the year 2006.

This offers added incentive to banks for lending to this retail segment as

against corporate lending where capital consumption is higher.

The greater amount of consumerism in the country with upswing in

income levels of burgeoning middle class, which has propensity to

consume to raise their standard of living, is enlarging the retail markets.

This market is growing 2 50 percent per year and boosting the demand

for credit from households. The potential is huge as present penetration

level is just over 2 percent in the country. Given the easy liquidity

scenario in the country the growth rate in this sector is likely to go up

manifold in the years come. This offers great potential for banks to

enlarge their loan books.

The Indian mindset is also changing and consumers prefer to improve

their quality of life even if it means borrowing for facilities like housing,

consumer goods vehicles and vacationing etc. Borrowing and lending is

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no longer considered a taboo. The peer pressure and demonstration

effect is further pushing up demand for housing loans, consumer

products and automobiles. The profiles of customers are fast changing

from conservative dodos to fashionable peacocks. All these

developments give big push to Retail Banking activities.

Retail Banking clients are generally loyal and tend not to change from

one Bank to another very often.

Large numbers of Retail clients facilitate marketing, mass selling and

ability to categorize/select clients using scoring system and data mining.

Banks can cut costs and achieve economies of scale and improve their

bottom-line by robust growth in retail business volume.

Through product innovations and competitive pricing strategies Banks

can foster business relationship with customers to retain the existing

clients and attract new ones.

Innovative products like asset securitization can open new vistas in

sustaining optimal capital adequacy and asset liability management for

banks.

Retail Banking offers opportunities to banks to cross-sell other retail

products like credit card, insurance, mutual fund products and demat

facilities etc. to depositors and investors.

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Impact of Retail Banking:

The major impact of retail Banking is that, the customers have become the Emperors –

the fulcrum of all Banking activities, both on the asset side and the liabilities front. The

hitherto sellers market has transformed into buyers market the customers have

multiple of choices before them now for cherry picking products and services, which

suit their lifestyles and tastes and financial requirements as well. Banks now go to their

customers more often than the customers go to their banks.

Retail Banking is transforming banks into one stop financial super

markets.

The share of retail loans is fast increasing in the loan books of banks.

Banks can foster lasting business relationship with customers and retain

the existing customers and attract new ones. There is a rise in their

service as well.

Banks can cut costs and achieve economies of scale and improve their

revenues and profits by robust growth in retail business. Reduction in

costs offers a win win situation both for banks and the customers.

It has affected the interface of banking system through different delivery

mechanism

It is not that banks are sharing the same pie of retail business, the pie

itself is growing exponentially. Retail Banking has fuelled a considerable

quantum of purchasing power through a slew of retail products.

Banks can diversify risks in their credit portfolio and contain the menace

of NPAs. Retail banking allows bank to cross sell other products and

services as it is far more easier to sell other products to the same

customer rather than search for absolutely new ones. Cross selling is

one of the best avenues for relationship

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Banking and retention of customers. Banks can thus increase their

business volume and improve their bottom-line substantially.

Re-engineering of business with sophisticated technology based

products will lead to business creation, reduction in transaction costs and

enhancement in efficiency of operations.

Problems faced in Retail Banking :

Retail Banking has all it’s attendant risks. It is highly sensitive .Banks got

to move cautiously. It is easy to enter, but difficult to get out. A systematic

and a calculated approach is the pre-requisite for success in the long run.

Retail Banking is being introduced with the concept of serving customer

with better and innovative products with the latest technology and easy

availability. It becomes so popular and widely acceptable that more and

more customers had started to use it. Now it becomes a mass product.

Customer database have tremendously increased and it becomes

difficult to manage them.

To match the customer inflows and current customer requirements as

well as service standards, banks have to set up more branches,

distribution channels and new trained staff as well as improvement in

back office operations also in very near future. This itself a time bounded

problem and banks have to do it as early as possible.

Today’s competitive market customer has more than one options for his

retail banking needs. Every bank is providing more or less similar kind of

products. So an unsatisfied customer can easily switch over to another

competitor’s bank. So banks need to be very careful in handling the

customers. They have to continually improve their service standards.

Retail Banking is so wide accepted by the customer as well as very

aggressively promoted by the bankers that if the bankers do not take

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adequate care in distributing and recovering advances, there are

chances of increasing in NPAs in coming feature. And that would be an

alarming situation.

BENEFITS OF RETAIL BANKING

Traditional lending to the corporate are slow moving along with high NPA risk,

treasure profits are now loosing importance hence Retail Banking is now an alternative

available for the banks for increasing their earnings. Retail Banking is an attractive

market segment having a large number of varied classes of customers. Retail Banking

focuses on individual and small units. Customize and wide ranging products are

available. The risk is spread and the recovery is good. Surplus deployable funds can

be put into use by the banks. Products can be designed, developed and marketed as

per individual needs.

SCOPE FOR RETAIL BANKING IN INDIA

• All round increase in economic activity

• Increase in the purchasing power. The rural areas have the large purchasing

power at their disposal and this is an opportunity to market Retail Banking.

• India has 200 million households and 400 million middleclass population more than

90% of the savings come from the house hold sector. Falling interest rates have

resulted in a shift. “Now People Want To Save Less And Spend More.”

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• Nuclear family concept is gaining much importance which may lead to large

savings, large number of banking services to be provided are day-by-day

increasing.

• Tax benefits are available for example in case of housing loans the borrower can

avail tax benefits for the loan repayment and the interest charged for the loan.

CHALLENGES TO RETAIL BANKING IN INDIA

The issue of money laundering is very important in retail banking. This compels all the

banks to consider seriously all the documents which they accept while approving the

loans.

The issue of outsourcing has become very important in recent past because various

core activities such as hardware and software maintenance, entire ATM set up and

operation (including cash, refilling) etc., are being outsourced by Indian banks.

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Banks are expected to take utmost care to retain the ongoing trust of the public.

Customer service should be at the end all in retail banking. Someone has rightly said,

“It takes months to find a good customer but only seconds to lose one.” Thus, strategy

of Knowing Your Customer (KYC) is important. So the banks are required to adopt

innovative strategies to meet customer’s needs and requirements in terms of

services/products etc.

The dependency on technology has brought IT departments’ additional responsibilities

and challenges in managing, maintaining and optimizing the performance of retail

banking networks. It is equally important that banks should maintain security to the

advance level to keep the faith of the customer.

The efficiency of operations would provide the competitive edge for the success in

retail banking in coming years.

The customer retention is of paramount important for the profitability if retail banking

business, so banks need to retain their customer in order to increase the market share.

One of the crucial impediments for the growth of this sector is the acute shortage of

manpower talent of this specific nature, a modern banking professional, for a modern

banking sector.

If all these challenges are faced by the banks with utmost care and deliberation, the

retail banking is expected to play a very important role in coming years, as in case of

other nations.

EMERGING ISSUES IN HANDLING RETAIL BANKING

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KNOWING CUSTOMER

• ‘Know your Customer’ is a concept which is easier said than practiced. Banks face

several hurdles in achieving this. In order to that the product lines are targeted at the

right customers-present and prospective-it is imperative that an integrated view of

customers is available to the banks. The benefits flowing out of cross-selling and up-

selling will remain a far cry in the absence of this vital input. In this regard the

customer databases available with most of the public sector banks, if not all, remain far

from being enviable.

What needs to be done is setting up of a robust data warehouse where from

meaningful data on customers, their preferences, there spending patterns, etc. can be

mined. Cleansing of existing data is the first step in this direction. PSBs have a long

way to go in this regard.

TECHNOLOGY ISSUES

• Retail banking calls for huge investments in technology. Whether it is setting up of a

Customer Relationship Management System or Establishing Loan Process Automation

or providing anytime, anywhere convenience to the vast number of customers or

establishing channel/product/customer profitability, technology plays a pivotal role.

And it is a long haul. The Issues involved include adoption of the right technology at

the right time and at the same time ensuring volumes and margins to sustain the

investments.

It is pertinent to remember that Citibank, known for its deployment of technology, took

nearly a decade to make profits in credit cards. It has also to be added in the same

breath that without adequate technology support, it would be well nigh possible to

administer the growing retail portfolio without allowing its health to deteriorate. Further,

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the key to reduction in transaction costs simultaneously with increase in ability to

handle huge volumes of business lies only in technology adoption.

PSBs are on their way to catch up with the technology much required for the success

of retail banking efforts. Lack of connectivity, stand alone models, concept of branch

customer as against bank customer, lack of convergence amongst available channels,

absence of customer profiling, lack of proper decision support systems, etc., are a few

deficiencies that are being overcome in a great way. However, the initiatives in this

regard should include creating flexible computing architecture amenable to changes

and having scalability, a futuristic approach, networking across channels, development

of a strong Customer Information Systems (CIS) and adopting Customer Relationship

Management (CRM) models for getting a 360 degree view of the customer.

ORGANIZATIONAL ALIGNMENT

• It is of utmost importance that the culture and practices of an institution support its

stated goals. Having decided to take a plunge into retail banking, banks need to have a

well defined business strategy based on the competitive of the bank and its potential.

Creation of a proper organization structure and business operating models which

would facilitate easy work flow are the needs of the hour. The need for building the

organizational capacity needed to achieve the desired results cannot be overstated.

This would mean a strong commitment at all levels, intensive training of the rank and

file, putting in place a proper incentive scheme, etc. As a part of organizational

alignment, there is also the need for setting up of an effective Corporate Marketing

Division. Most of the public sector banks have only publicity departments and not

marketing setup.

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A fully fledged marketing department or division would help in evolving a brand

strategy, address the issue of alienation from the upwardly mobile, high net worth

customer group and improve the recall value of the institution and its products by

arresting the trend of getting receded from public memory. The much needed tie-ups

with manufacturers/distributors/builders will also facilitated smoothly.

It is time to break the myth PSBs are not customer friendly. The attention is to be

diverted to vast databases of customers lying with the PSBs till unexploited for

marketing.

PRODUCT INNOVATION

• Product innovation continues to be yet another major challenge. Even though

bank after bank is coming out with new products, not all are successful. What is

of crucial importance is the need to understand the difference between novelty

and innovation? Peter Drucker in his path breaking book: “Management

Challenges for the 21st Century” has in fact sounded a word of caution:

“innovation that is not in tune with the strategic realities will not work; confusing

novelty with innovation (should be avoided), test of innovation is that it creates

value; novelty creates only amusement”.

• The days of selling the products available in the shelves are gone. Banks need

to innovate products suiting the needs and requirements of different types of

customers. Revisiting the features of the existing products to continue to keep

them on demand should not also be lost sight of.

PRICING OF PRODUCT

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• The next challenge is to have appropriate policies in place. The industry today is

witnessing a price war, with each bank wanting to have a larger slice of the cake that is

the market, without much of a scientific study into the cost of funds involved, margins,

etc. The strategy of each player in the market seems to be: ‘under cutting others and

wooing the clients of others’.

• Most of the banks that use rating models for determining the health of the retail

portfolio do not use them for pricing the products. The much needed transparency in

pricing is also missing, with many hidden charges. There is a tendency, at least on the

part of few to camouflage the price. The situation cannot remain his way for long. This

will be one issue that will be gaining importance in the near future.

PROCESS CHANGES

• Business Process Re-engineering is yet another key requirement for banks to handle

the growing retail portfolio. Simplified processes and aligning them around delivery of

customer service impinging on reducing customer touch-points are of essence.

• A realization has to drawn that automating the inefficiencies will not help anyone and

continuing the old processes with new technology would only make the organization an

old expensive one.

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• Work flow and document management will be integral part of process changes. The

documentation issues have to remain simple both in terms of documents to be

submitted by the customer at the time of loan application and those to be executed

upon sanction.

ISSUE CONCERNING HUMAN RESOURCES

• While technology and product innovation are vital , the soft issues concerning the

human capital of the banks are more vital.

• The corporate initiatives need to focus on bringing around a frontline revolution.

Though the changes envisaged are seen at the frontline, the initiatives have to really

come from the ‘back end’.

• The top management of banks must be seen as practicing what preaches. The

initiatives should aim at improved delivery time and methods of approach. There is an

imperative need to create a perception that the banks are market-oriented.

This would mean a lot of proactive steps on the part of bank management which would

include empowering staff at various levels, devising appropriate tools for performance

measurement bringing about a transformation – ‘can’t do ‘to’ can do’ mind-set change

from restrictive practices to total flexible work place, say.

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By having universal tellers, bringing in managerial controlling work place, provision of

intensive training on products and processes, emphasizing, coaching etiquette, good

manners and best behavioral models, formulating objective appraisals, bringing in

transparency, putting in place good and acceptable reward and punishment system,

facilitating the placement of young /youthful staff in front-line defining a new role for

front-line staff by projecting them as sellers of products rather than clerks at work and

changing the image of the banks from a transaction provider to a solution provider.

RURAL ORIENTATION

• As of now, action that is taking place on the retail front is by and large confined two

metros and cities. There is still a vast market available in rural India, which remains to

be trapped. Multinational Corporations, as manufacturers and distributors, have

already taken the lead in showing the way by coming out with exquisite products,

packaging and promotions, keeping the rural customer in mind.

• Washing powders and shampoos in Re.1 sachet made available through an efficient

network and testimony to the determination of the MNCs to penetrate the rural market.

In this scenario, banks cannot lack behind.

• In particular PSBs, which have a strong rural presence, need to address the needs of

rural customers in a big way. These and only these will propel retail growth that is

envisaged as a key strategy for portfolio expansion by most of the banks.

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LITERATURE REVIEW

Background:

Our perception is an approximation of reality. Our brain attempts to make sense

out of the stimuli to which we are exposed. This works well when we are about to

perceive familiar facts. However, our perception is sometimes “off” when we are not

clear about concepts. Perception is a process by which an individual select, organize &

Interpret stimuli in a meaningful picture of the world Also, we can describe as “how we

see the world around us” Perception is the process of selecting, organizing, &

Interpreting or attaching meaning to events happening in environment.

The Concept of Perception

Perception is one of the objects studied by the science of consumer behaviour.

Analyzing the works of scientists studying consumer behaviour, it is possible to

make a conclusion that perception is presented as one of personal factors,

determining consumer behaviour. Personal factors mean the closest

environment of a human, including everything what is inside the person, his

head and soul, characterizing him as a personality.

Using his sensory receptors and being influenced by external factors, the person

receives information, accepts and adapts it, forms his personal attitude, opinion, and

motive, which can be defined as factors that will influence his further activity and

behavior. Perception within this context is considered as one of the principal personal

factors, conditioning the nature and direction of remaining variables.

Customer perception is an important component of our relationship with our

customers. Customer satisfaction is a mental state which results from the customer’s

comparison of expectations prior to a purchase with performance perceptions after a

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purchase. A customer may make such comparisons for each part of an offer called

‘‘domain-specific satisfaction’’ or for the offer in total called ‘‘global satisfaction’’.

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Retail Banking Products Portfolio

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A. Deposits :

There are many products in retail banking like Fixed Deposit, Savings Account,

Current Account, Recurring Account, NRI Account, Corporate Salary Account, Free

Demat Account, Kid’s Account, Senior Citizen Scheme, Cheque Facilities, Overdraft

Facilities, Free Demand Draft Facilities, Locker Facilities, Cash Credit Facilities, etc.

They are listed and explained as follows:

1 . Fixed Deposit:

The deposit with the bank for a period, which is specified at the time of making the

deposit is known as fixed deposit. Such deposits are also known as FD or term deposit

.A FD is repayable on the expiry of a specified period. The rate of interest and other

terms and conditions on which the banks accepted FD were regulated by the RBI, in

section 21 and 35A of the Banking Regulation Act 1949.Each bank has prescribed

their own rate of interest and has also permitted higher rates on deposits above a

specified amount. RBI has also permitted the banks to formulate FD schemes specially

meant for senior citizen with higher interest than normal.

2 . Savings Account:

Saving bank account is meant for the people who wish to save a part of their current

income to meet their future needs and they can also earn in interest on their savings.

The rate of interest payable on by the banks on deposits maintained in savings

account is prescribed by RBI.

Now-a-days the fixed deposit is also linked with saving account. Whenever there is

excess of balance in saving account it will automatically transfer into Fixed deposit and

if there is shortfall of funds in savings account , by issuing cheque the money is

transferred from fixed deposit to saving account. Different banks give different name to

this product.

3. Current Account:

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A current account is an active and running account, which may be operated upon any

number of times during a working day. There is no restriction on the number and the

amount of withdrawals from a current account. Current account, suit the requirements

of a big businessmen, joint stock companies, institutions, public authorities and public

corporation etc.

4. Recurring Deposit:

A variant of the saving bank a/c is the recurring deposit or cumulative deposit a/c

introduced by banks in recent years. Here, a depositor is required to deposit an

amount chosen by him. The rate of interest on the recurring deposit account is higher

than as compared to the interest on the saving account. Banks open such accounts for

periods ranging from 1 to 10 years.. The recurring deposit account can be opened by

any number of persons, more than one person jointly or severally, by a guardian in the

name of a minor and even by a minor.

5. NRI Account: NRI accounts are maintained by banks in rupees as well as in

foreign currency. Four types of Rupee account can be open in the names of NRI:

a. Non Resident Rupee Ordinary Account (NRO)

b. Non Resident External Account (NRE)

c. Non Resident ( Non Repatriable Deposit Scheme ) ( NRNR)

d. Non Resident ( special)Rupee Account Scheme ( NRSR)

Apart from this, foreign currency account is the account in foreign currency. The

account can be open normally in US Dollar, Pound Sterling, Euro. The accounts of

NRIs are Indian millenium deposit, Resident foreign currency, housing finance scheme

for NRI investment schemes.

6. Corporate Salary Account:

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Corporate Salary account is a new product by certain private sector banks, foreign

banks and recently by some public sector banks also. Under this account salary is

deposited in the account of the employees by debiting the account of employer. The

only thing required is the account number of the employees and the amount to be paid

them as salary. In certain cases the minimum balance required is zero. All other

facilities available in savings a/c is also available in corporate salary account.

7. Demat Account:

Dematerialization is a process by which physical share certificates / securities are

taken back by the company or registrar and destroyed ultimately. An equivalent

number of shares are credited electronically to customers depository account. Just like

saving/current account with a bank one can open a securities account with the

depository through a depository participant

8 . Kid’s Account ( Minor Account ) :

Children are invited as customer by certain banks. Under this, Account is opened in

the name of kids by parents or guardians. The features of kid’s account are free

personalized cheque book which can be used as a gift cheque , internet banking ,

investment services etc.

9 . Senior Citizenship Scheme:

Senior citizens can open an account and on that account they can get interest rate

somewhat more than the normal rate of interest. This is due to some social

responsibilities of banks towards aged persons whose earnings are mainly on the

interest rate.

B. Loans and Advances:The main business of the banking company is lending of

funds to the constituents, mainly traders, business and industrial enterprises. The

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major portion of a bank’s funds is employed by way of loans and advances, which is

the most profitable employment of its funds.

1. Personal Loans : This is one of the major loans provided by the banks to the

individuals. There the borrower can use for his/her personal purpose. This may be

related to his/her business purpose. The amount of loan is depended on the income of

the borrower and his/her capacity to repay the loan.

2. Housing Loans: NHB is the wholly own subsidiary of the RBI which control and

regulate whole industry as per the guidance and information. The purpose of loan is

mainly for purchase, extension, renovation, and land development.

3. Education Loans : Loans are given for education in country as well as abroad.

4. Vehicle Loans: Loans are given for purchase of scooter, auto-rickshaw, car,

bikes etc. Low interest rates, increasing income levels of people are the factors for

growth in this sector. Even for second hand car finance is available.

5. Professional Loans: Loans are given to doctor, C.A, Architect, Engineer or

Management Consultant. Here the loan repayment is normally done in the form of

equated monthly.

6. Consumer Durable Loans: Under this, loans are given for acquisition of T.V,

Cell phones, A.C, Washing Machines, Fridge and other items.

7. Loans against Shares and Securities: Finance against shares are given by banks

for different uses. Now-a-days finance against shares are given mostly in demat

shares. A margin of 50% is normally accepted by the bank on market value. For these

loans the documents required are normally DP notes, letter of continuing security,

pledge form, power of attorney. This loan can be used for business or personal

purpose.

Retail Banking Services

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Retail Banking Services

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1. CREDIT CARDS:

A credit card is an instrument, which provides immediate credit facilities to its holder to

avail a variety of goods and services at the merchant outlets. It is made of plastic and

hence popularly called as Plastic Money. Such cards are issued by bank to persons

with minimum income ranging between RS 50000 and RS 100000 per annum and are

accepted by a variety of business establishments which are notified by the card issuing

bank. Some banks insist on the cardholder being their customers while others do not.

Few banks do not charge any fee for issuing credit cards while others impose an initial

enrollment fee and annual fee also. If the amount is not paid within the time duration

the bank charges a flat interest of 2.5%. Leading Indian Banks such as : SBI, BOB,

Canara Bank, ICICI, HDFC and a few foreign banks like CITIBANK, Standard

Chartered etc are the important issuers of credit card in India.

2. DEBIT CARDS:

It is a new product introduced in India by Citibank a few years ago in association with

MasterCard. A debit card facilitates purchases or payments by the cardholder .It debits

money from the account of the cardholder during a transaction. This implies that the

cardholder can spend only if his account permits.

3. NET BANKING :

This facilitates the customers to do all their banking operations from their home by

using the internet facility. With Net Banking one can carry out all banking and shopping

transactions safely and with total confidentiality. With Net Banking one can easily

perform various functions:

a. Check Account Balance

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b. Download Account Statement

c. Request for a stop payment of a cheque.

d. Request for a new cheque book.

e. Access demat account

f. Transfer funds.

g. Facilitate bill Payments.

h. Pay Credit Card dues instantly.

4. MOBILE BANKING:

Using mobile banking facility one can –

a. Check Balance

b. Check last three transactions.

c. Request for a statement

d. Request for a cheque book.

e. Enquire on a cheque status.

f. Instruct stock cheque payment.

g. View FD details.

h. Transfer funds.

i. Pay Utility Bills.

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5. PHONE BANKING: It helps to conduct a wide range of banking transactions

from the comfort of one’s home or office. Using phone banking facility one can:

a. Check Balance

b. Check last three transactions.

c. Request for a cheque book.

d. Transfer funds.

e. Enquire on a cheque status, and much more.

7 .ANYWHERE BANKING:

One can deposit or withdraw cash from any branch of a particular bank all over the

country up to a prescribed limit. One can also transfer funds.

8. AUTOMATED TELLER MACHINES (ATM):

ATMs features user-friendly graphic screens with easy to follow instructions. The

ATMs interact with customers in their local language for increased convenience.ICICI

Bank’s ATM network is one of the largest and most widespread ATM network in India.

Following are the features available on ATMs which can be accessed from anywhere

at anytime:

a. Cash Withdrawal

b. Cash Deposit

c. Balance Enquiry

d. Cheque Book Request

e. Transaction at various merchant establishments.

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9. SMART CARD:

The smart card, a latest additional to the world of banking and information technology

has emerged as the largest volume driven end-product in the world due to its data

portability, security and convenience. Smart Card is similar in size to today’s plastic

payment card, it has a memory chip embedded in it. The chip stores electronic data

and programmes that are protected by advanced security features. When coupled with

a reader, the smart card has the processing power to serve many different

applications. As an access-control device, smart cards make personal and business

data available only to appropriate users.To ensure the confidentiality of all banking

service, smart cards have mechanisms offering a high degree of security. These

mechanisms are based on private and public key cryptography combined with a digital

certificate, one of the most advanced security techniques currently available. Infact, it

is possible to connect to the web banking service without a smart card.

Services of Industrial Development Bank of India

In order to increase its customer base, the Industrial Development Bank of India offers

a number of customized and innovative banking services. The services are meant to

offer cent percent satisfaction to the customers. Some of the well known services

offered by the bank are:

Wholesale Banking services:

The wholesale banking services form a major part of the banking services of the bank.

The services that are offered under the wholesale division are:

• Transactional services

• Finance of working capital

• Agro based business transactions

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• Trade services

Retail Banking Services:

The Industrial Development Bank of India is also a leader in the retail banking

services. The Net Interest Income amounted to around Rs 2166 Crores while the Net

Profit amounted to around Rs 187 Crores. The main objective of the retail services is

to provide high quality financial products to the target market to give that one-stop-

solution to the banking needs. The retail products offered by the bank include:

• Housing loans

• Personal loans

• Securities loans

• Mortgage loans

• Educational loans

• Merchant establishment overdrafts

• Holiday travel plans

• Commercial property loans

Treasury facilities and services:

The net interest income of this sector amounts to around Rs 1283 Crores while the net

profit amounts to around Rs 44.8 Crores. One can get an array of financial products

such as cash management services, deposit, treasury products, trade finance services

and so on. The three segments in this sector are:

• Local Currency Money Market

• Debt Securities and equities

• Foreign Exchange and Derivatives

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Other services of Industrial Development Bank of India

In addition to these, IDBI also offers some allied services and financial solutions to

cater to the target audience. To cater to the capital market, the bank has floated the

IDBI Capital Market Services Limited, also known as IDBI Capital. The various

services offered in this section are:

• Corporate Advisory Services

• Financial product distribution

• Pension fund management

• Corporate and retail services

• Debt management services

The IDBI Home Finance Limited is also a subsidiary of the Industrial Development

Bank of India. It is used for the purpose of providing long term loans and other financial

benefits to various companies of the industrial sector.

In addition to these, there is also the IDBI Intech Limited which is a trusted name in the

field of system support and implementation, applications, server hosting, system

integration and other related services. Another subsidiary of the Industrial

Development Bank of India is the IDBI Gilts Limited. The main services of this segment

is trading of bonds, offering insurance, auction underwriting and so on.

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Products & Services offered by IDBI bank

Retail banking

Deposits

Loans

Payments - Tax Payments, Stamp Duty Payments, Easy Fill, Bill Payment, Card

to Card Money Transfer, Pay Mate, Online Payments

Mutual Fund

Demat Account

IPO

Insurance - Family Care, Weathsurance

Cards - Debit Card, Credit Card, Cash Card, Gift Card, International Debit-cum-

ATM Card, World Currency Card

Institutional Banking

Lockers

India Post

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NRI Services

Phone Banking

SMS Banking

Account Alerts

Internet Banking

Corporate Banking

Project Finance

Infrastructure Finance

Syndication, Underwriting & Advisory Services

Carbon Credits Business

Working Capital

Cash Management Services

Trade Finance

Tax Payments

Derivatives

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Technology Up gradation Fund Scheme (TUFS)

Film Financing Scheme

Direct Discounting Bills

Rehabilitation Finance

Others

SME Finance

Agri-business Products

Details of retail Products & Services Offered by IDBI Bank.

IDBI Bank offers the entire basket of banking products to its customers with various

add on benefits. The products that it offers are,

Savings Account. A customary product that every bank offers to all its

customers .A savings account can be opened with an average quarterly balance of Rs

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5000 (Rs 2500 in select cities) IDBI Bank also offers its customer s the saving account

with a range of facilities which include;

1. Door step account opening

2. Instant account number and ATM card

3. Personalized cheque book

4. Quarterly statement by post

5. Monthly statement by email

6. Any period statement by fax

7. 24*7 cash access at atms

8. Internet banking

9. SMS banking

10.Phone banking

11.Sweep in facility linked to fixed deposits

12.Demat balance info

13.Demat statements with portfolio values

14. Investment advisory services

15.Any Branch Banking

16.Deposit / withdrawal cash at any branch

17.Transfer funds electronically across branches

18.Deposit local cheques at any branch.

Current Account.

Opening a current account with a bank now comes with unlimited options. PaisaWaisa

now brings you in-depth comparison of a large number of bank current accounts.

Current accounts are the best option for all your business needs. Most current

accounts are now available with a debit card and online banking facilities. Like a

Savings Account, you can set up direct debits with your Current Account also.

Opening a current bank account is usually a straightforward process. Get diverse

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options for opening a current account at the bank of your choice, as we bring to you in-

depth comparison details, such as minimum balance required, other T&C, documents

required and other minute details to help you choose the best option suited to your

needs. Current accounts are by far the best options for all your business needs.

An account to take care of the business sector. IDBI with its range of Roaming Current

Accounts offers five types of account options to the business sector in the form of

Basic, Special, Bronze, Silver and Gold. Based on the kind of balance that the

customer is willing to maintain he can choose the account, which can best suit his

needs. The facilities that one gets on his current account would be,

1. Free at par cheque book

2. Free demand drafts/pay orders on idbi lactations

3. Free demand drafts on non- idbi bank locations

4. Free electronic fund transfer

5. Free any branch deposit and withdrawal

6. Free outstation cheque collection

Along with other facilities like

Internet banking

• ATM Banking

• Mobile Banking

• Monthly statements

• Daily cash and cheque pick up

• Sweep in facility

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Fixed Deposits.

IDBI presence in this segment is by way of its Suvidha Fixed Deposits. And now with it

s becoming a PSU bank is accompanied with safety, credibility and attractive interest

rates. These deposits are backed with added features like,

• Anytime access to money

• Deposits across tenures of 15 days to 9 years

• Various payout options such as,

• Monthly / Quarterly Income Plan

• For those who want a periodic return on their investment this is the best option

that they will receive a monthly or a quarterly payout of interest.

• Quarterly Compounding Fixed Deposits

• Ideal for those who want a higher rate of return along with a lower risk factor.

Recurring Deposits.

. The customer can choose any amount that he would like to deposit on a monthly

basis anything between Rs 500 to 1 lakh.Earn a fixed deposit rate on your savings

account. In this option the client has to give an instruction that once his balance

reaches a certain amount than automatically a certain amount would be converted into

a Fixed Deposit. Whenever the client needs he can withdraw the money at his

convience.

The FD s are made in multiples of Rs 1000 and whenever the client withdraws the last

made FD is broken first so that he does not loose interest.

Overdraft against Fixed Deposits.

In this facility the client can meet his urgent financial needs without breaking his

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fixed deposits. He can take overdraft of up to 90% of the FD value.

Preferred Banking.

A Channel which special caters to the select few who fall in the HNI category. Here

exclusivity, convience and privilege is a norm. Special benefits and benefits are offered

to the clients in the form of,

• Dedicated Relationship Manager

• Investment Advisory Services

• Special Lounge in the Bank etc.

NRI Services

• Along with the NRI account available to non-residents they also enjoy a host of other

facilities.

• The Bank offers the client to access his funds by way of International Debit card.

• Fund Transfer Facility

• Foreign exchange

• Wealth Management services

• Insurance.

The various types of Accounts that an NRI can opt out for are

Non Resident External (NRE) Account

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The features of this account are Rupee account Both principal and interest, fully

repatriable Can be held as savings account, current account and Term deposit, Totally

Tax Free.

Non-Resident Ordinary (NRO) Account-

The features of this account are, Rupee Account Interest earned fully repatriable,

Principal non-repatriable Can be held as a savings account, current account, and term

deposit Ideal account for local rupee funds Interest taxable at applicable rates Ideal

account to credit income like rent, dividend etc.

Foreign Currency Non Resident (FCNR- B) Scheme.

The features of this account are, Available in four currencies USD, GBP, EURO, JPY

Available as Fixed Deposits ,Interest earned in Foreign currency, Maintained in

Foreign currency, No exchange risk, Totally tax free, Both principal and interest, fully

repatriable.

Alternate Sources of Revenue for the Bank.-

Broadly speaking the revenue sources of the bank can be divided into two the one,

which it renders directly, and the other through the distribution of Third party Product of

other companies. Revenue that is generated through the ale of third Party Products

would be through.

Mutual Funds-

A Mutual Fund is a trust that pools the savings of a number of investors who share a

common financial goal.

The money thus collected is then invested in capital market instruments such as

shares, debentures equity, debt instruments, money market instruments etc., or a mix

of these securities, depending on the scheme objectives. The income earned through

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these investments and the capital appreciation realized are shared by its unit holders

in proportion to the number of units owned by them. Thus a Mutual Fund is the most

suitable investment for the common man as it offers an opportunity to invest in a

diversified, professionally managed basket of securities at a relatively low cost.In today

s economic scenario wherein the interest rate of saving going down the customers are

looking at other sources of investment through which they can get a good rate of return

with a nominal risk. Instead of losing the customer to someone else the banks itself are

offering this products at their branches. And Mutual fund is one instrument, which is

catching the fancy of the investors.

Mutual funds are considered as the investment avenue. People always look for a

higher return. The banks are no longer giving the returns they once used to give and

there is hardly any chance of the interest rates going up. So if one wants higher returns

one has to invest in shares. But one does not have the expertise to invest.

If one wants to minimize the risk one has to diversify the portfolio. But for

diversification one needs huge amount of money that one may not have. At this point

one can turn to Mutual funds for they provide expertise to invest in the stock market

and also debt instruments. The fund manager decides where to invest and why. The

investor can select a scheme according to his investment needs and risk appetite.

Most of the funds give an indicative rate before investing and the returns eventually get

close to the return indicated. IDBI bank helps one to plan their investments and build a

healthy mutual fund portfolio, which would be an optimal solution for all needs.

Cultivating an investment culture will not only help the customer but also their family.

And IDBI Bank gives highest priority to all customer needs.

Risk Factors:

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All the investments in the securities market are subject to market risks and the NAV of

schemes/ plans may go up or down depending upon the factors and forces affecting

securities market. Past performance is not necessarily indicative of the future.

Performance of IDBI Margao Branch in Mutual Funds Sale.

IDBI margao was one of the first banks, which caught the pulse of its customers in the

town for Investment in Mutual Funds and today is a strong force to reckon with when it

comes to investment in Mutual Funds. In the normal course of business the bank is

able to generate a collection of around 5-10 lakhs and during the time of NFO s from

various fund houses it is able to generate additional 10-15 lakhs on an average.

The Bank generates maximum revenue from the sale of Mutual Funds in the Bank

and has got some dedicated customers who invest only through IDBI Bank. For this

the bank has got its staff trained so as to understand the needs of the customers and

offer them the products accordingly.

Sale of RBI Bonds

IDBI bank offers RBI bonds (GOI bonds). These bonds are fully taxable. The bonds

were issued in cumulative and non-cumulative form, at the option of the investor. The

Bond bears interest at the rate of 8% per annum. Interest on noncumulative bonds will

be payable at half-yearly intervals. Interest on cumulative bonds will be compounded

with half-yearly rests and will be payable on maturity along with the principal.

These investments are for long term period and therefore have no liquidity.

Subscription to the Bonds can be in the form of Cash/Drafts/Cheques. The money is

locked for 6 years but one is guaranteed of the safety and returns. The Bonds shall be

repayable on the expiry of 6 (Six) years from the date of issue. No interest would

accrue after the maturity of the Bond. There will be no maximum limit for investment in

the Bonds

Revenue From Sale of RBI Bonds.

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IDBI is one of the main distributors for RBI Bonds in India. The earn a revenue of 2%

on the amount collected. As it is one of the main distributors it has sub agents who

distributors for the sale of Bonds in such scenario they have part with a part of the

revenue to them. But since the time the returns on the bonds have become taxable

they have lost the sight of the investors, who now look at other sources for investment

where they can get a tax-free return. As such the contribution of RBI bonds in the

revenue basket has come down.

Commonly sold Life Insurance individual life plans in IDBI Bank. Birla Sun

Life Insurance is one the leading players in the life insurance business in India.

It was the pioneer in launching the Unit Linked insurance products in the Market

and today is one of the market leaders in this segment. Some of the products

that are sold by IDBI Bank are,

Term Plan.

A plan, which provides the customer with a pure risk cover at a nominal cost. It is like

general insurance only in case of death during the tenure of the policy does the

nominee get the Sum Assured or else if the policy holder survives during the entire

term he does not get anything.

Classic Life Premier.

A product, which serves the investment savvy client who likes to have insurance as

well, a decent amount of return on the premiums paid by him. This product gives the

client the flexibility to choose the premium he would like to pay, the number of years he

would like to pay, the sum assured he would like to have on this policy. This product

gives the client to choose where he would like the insurance company to invest his

money.

He has an option to choose from funds, which have a varying equity exposure ranging

from 0% to 90%, this would determine the return that he is going to get on his

investments.

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This is an endowment plan wherein the clients gets the money on maturity and incase

of death during the policy period he gets the Sum Assured and the value of his

investments. This also is an investment linked plan.

Flexi Cash Flow.

A money back plan which caters to the client needs in case he would like to get some

money on regular intervals. Again also an investment linked plan. Revenue From Sale

of Life Insurance and Margao Branch performance Today all the banks are entering

with tie up s with Life Insurance companies to sell their products at their branches.

Insurance is now a major source of revenue to the Bank and they are giving special

focus on this area. They have their staff trained to sell the products as per the needs of

the customers and also the Life Insurance companies place their representative at the

branches to assist the bank in selling.

The Bank earns a revenue of somewhere around 10 % 40 % of the premium collected

by them. This would depend on the type of product sold and the duration of the policy.

Life Insurance sale had just started at the margao branch, as initially the Insurance

Company had no operations in Goa.

The Branch has picked up in the sales right from day one. It does on an average a

business of 2-4 lakhs of premium collection on a month-to-month basis. Taking an

average of 25% revenue a premium collection of 4 lakhs would earn an income of

around 1 lakh every month for Margao Branch.

General Insurance

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IDBI has got a strategic tie up with Bajaj Allianz General Insurance for sale of the laters

products at the branches. With the tie up with Bajaj, IDBI is in a position to satisfy all

the insurance needs of the client at the branch level.

Some common Products offered by IDBI

Family Care

Is a mediclaim policy special tailor made for the account holders of IDBI Bank. In this

policy the entire family can be covered under one policy. Bajaj Allianz has given

special rates to the customers of IDBI bank. And only the customers having an account

with IDBI bank can take this policy Vehicle Insurance / House Insurance etc. The

account holders can also get their vehicle insurance done from IDBI bank as well as

House and other insurable products insured through IDBI bank.

Revenue From sale of General Insurance

Sale of general insurance generates revenue of around 10-12 % for the bank. IDBI

Margao was one of the late entrants in the sale of general insurance and has made a

good start by bringing in good number of medicalaim policy and a couple of new

vehicle insurance on a month-to-month basis.

Depository Services-

A depository can be compared to a bank. Holding a Demat account is a paperless,

painless and convenient for buying and selling of shares in electronic form with total

security and without any delays A depository holds securities (like shares, debentures,

bonds, Government Securities, units etc.) of investors in electronic form. Besides

holding securities, a depository also provides services related to transactions in

securities. In India at present we have two depositories NSDL & CDSL. IDBI Bank is a

depository participant with both CDSL and NSDL.

RESEARCH METHDOLOGY

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INTRODUCTION:

Research in Common parlance refers to search for Knowledge. It’s a scientific and

systematic search for pertinent information on specific topic. Research is an art of

Scientific investigation its mean Systematized effort to gain new Knowledge.

According to Clifford woody “Research Comprises defining and redefining problem

formulating hypothesis or suggested solution Collecting, Organizing and evaluating

data making deductions and reaching Conclusion at Carefully testing the Conclusion to

determine whether they fit the formulating hypothesis.

In Short the Search for Knowledge through Objective and systematic method of finding

solution to a problem is research its refer to the systematic method Consisting

enunciating the problem, formulating a hypothesis, Collecting the fact or data analysis

the fact and reaching Certain Conclusion in the form of Solution.

TITLE OF THE STUDY

“Customer awareness towards retail banking in IDBI bank”

OBJECTIVE OF THE STUDY

The Purpose of research is to discover answer to question through the Application of

scientific procedure. The main aim of research is to find out the truth which is hidden

and which has not been discovered as yet.

To know and apply different market research techniques in our study as follows:

o Sampling Design

o Research Methodology

o Questionnaire Design

To highlight the satisfaction level regarding products.

To know the perception regarding IDBI products and services.

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To gain familiarity with a phenomenon or to achieve new insights into it (Studies

with this object in view are termed as exploratory or formulative research studies)

To portray accurately the characteristics of a particular individual Situation or a

group (Studies with this object in view are known as descriptive research studies).

TYPE OF RESEARCH

THERE ARE TWO TYPE OF RESEARCH DESIGN ARE FOLLOWING:-

DESCRIPTIVE RESEARCH DESIGN

QUANTITATIVE RESEARCH DESIGN

DESCRIPTIVE RESEARCH DESIGN:

Descriptive research includes survey and fact finding enquiries of different

Kinds. The major Purpose of descriptive research is description of State affairs as it

exists in present. In social and business research we quite often use. We have done

Survey found fact by personal interview so it is descriptive.

QUANTITATIVE RESEARCH DESIGN:

Quantitative research is based on the measurement of quantity or amount. It is

applicable to phenomena that can be expressed in term of quantity. We have also

found requirement in quantity so it’s the quantitative research.

SAMPLE DESIGN

Sample design refers to the technique or the procedure the researcher would adopt in

selecting item for the Sample. Sample design may be well lay down the number of

items to be included in the sample that is the size of the sample design is determined

before data are collected. Here we have used random sampling and the sample size

was 50. We have made a questionnaire through personal interview filled the

questionnaire.

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SAMPLING

To serve the objective and study the scope banks we have designed

questionnaire.The questionnaire was developed to check the level of satisfaction the

people after getting loan from their favourable institutions and the factors they consider

important while selecting a bank to getting the home loan and personal loan And what

facilities they require from their bankers or their grievances arising due to non fulfilment

of their needs and what is their opinion regarding different categories of banks

DATA COLLECTION

Basically there are two main method of data Collection primary data and Secondary

data. Primary data are those which are Collected freshly and the first time and thus

happen to be original in character. Other hand Secondary data are those which have

already been collected by someone else and which have already been passed through

the Statistical granting.

PRIMARY DATA

QUESTIONNAIRE METHOD : -

This method of data collection is quite popular, particularly in case of big enquiries. It is

being adopted by private individuals, research workers private and public organization

and even by governments in this method a questionnaire Consists of a number of

question printed or typed in definite order on a form or set of form I have made a

Questionnaire for Survey. The inquiry was done of the respondents through

questionnaire in which the same set of questions were asked to the very respondents

falling within out sample. The advantage is that it is simple to administer easy to

tabulate and analyse.

PERSONAL INTERVIEWS:

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The interview method of collecting data involves presentation of oral verbal stimuli and

reply in term of oral verbal responses. We have used this method through personal

interview.

SECONDARY DATA: Secondary data means data that are already available they

refer to the data which have already been collected and analyzed by someone else.

We have used for it following method Internet and journals of company. The search

was done on internet and related magazines, company’s websites to extract relevant

information. The other necessary information regarding all Banks products and other

bank products and offerings were obtained through printed sources such as Handouts,

Pamphlets, Advertisements and circulars etc.

Tools and Techniques

As no study could be successfully completed without proper tools and techniques,

same with my project. For the better presentation and right explanation used tools of

statistics and computer very frequently. Basic tools which used for project from

statistics are-

• Bar Charts

• Pie charts

• Tables

Bar charts and pie charts are really useful tools for every research to show the result in

a well clear, ease and simple way. Because used bar charts and pie charts in project

for showing data in a systematic way, so it need not necessary for any observer to

read all the theoretical detail, simple on seeing the charts anybody could know that

what is being said.

Technological Tools

• Ms- Excel

• Ms-Access

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• Ms-Word

Microsoft-Excel had a great role in this project, it created a situation of “you sit and

get”. Microsoft-Access did the performance of my personal assistant who organizes my

all the details of document without disturbing them even a single time in all the project

duration.

LIMITATIONS

Due to the financial & time constraints the study was limited to our place thus the

conclusion arrived in the end rely in short term experience.

Being an opinion survey the personal bases of the respondents might have entered

into their responses.

Time constraints resource constraints were some of the limitations.

The selected sample might have affected the results of the study therefore the

findings & conclusions of the study are only suggestive & not conclusive.

Sample was chosen according to convenience & judgment sampling & not

according to random sampling.

The sampling error that appeared due to the kind of sampling technique adopted.

Indifference and lack of interest disposed by a few respondents leading to

unauthentic responses.

Time proved to be a major constraint as far as collection and analysis of data was

concerned.

To overcome the above limitations and to minimize their impact on the findings of my

report I had to meet more respondents than my actual sample size.

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ANALYSIS AND INTERPRETATION

The following information contains the data interpretation of the questionnaire. The

respondent’s responses for the questions have been interpreted and a finding has

been made based on the respondents responses.

TABLE -1: Demographic details of the IDBI respondent’s

CHART- 1:

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AgeFrequency Percent

25-35 24 24%

36-45 28 28%

46-55 26 26%

Above 55 22 22

Total 100 100

Interpretation:

From the above data, it is observed that 28% of the respondents are belonging to the

age category of 36-45yrs. So it is concluded that the majority of the respondents fall

under this category.

TABLE -2 : Gender details of the IDBI respondents

Gender

Frequenc

y Percent

Male 72 72%

Female 28 28%

Total 100 100

99

CHART -2 :

Gender Ratio of the respondents

72%

28%

Male

Female

Interpretation:

From the data it is observed that 72% of the respondents are males. So, it is

concluded that the majority of the respondents are males.

TABLE -3

Education

Frequenc

y Percent

School 34 34

UG 40 40

PG 26 26

Total 100 100

CHART -3

100

Educational details of the respondents

34%

40%

26%

School UG Pg

Interpretation : From the above data, it is observed that 40% of the respondents are

graduated whereas 34% have school education; the remaining 26% being post

graduated.

TABLE -4 : Occupation details of the IDBI respondent’s

Occupation

Frequenc

y Percent

Service 62 62

Business 16 16

Pensioner 20 20

House-wife 2 2

Total 100 100

CHART -4

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Interpretation :

From the above data, it is observed that 62% of the respondents are in service while

only 2% house- wives. So it is concluded that the majority of the respondents fall under

the service category.

TABLE -5: Income details of the IDBI respondent’s.

Income

Level Percent5000

-15000 3415001-

25000 2825001-

35000 18Above

35000 20Total 100

CHART-5

102

Interpretation:

From the above data, it is observed that 34% of the respondents are belonging to the

income category of Rs5000-15000 p.m. So it is concluded that the majority of the

respondents fall under that income level.

TABLE .6 : Number of years the respondent’s have been associated with IDBI.

No. of Years

Frequenc

y Percentage

Less than 1yr 6 6

1-4 yr 22 22

4-7 yr 20 20

7-10 yr 12 12

10-13 yr 28 28

13-16 yr 10 10

16-19 yr 2 2

100 100

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Total

Interpretation: The above data shows that maximum number (28%) of the

respondents are associated with the bank from last 10-13 years.

TABLE -7: Accounts the respondents have with the bank.

A/c type Percent

Savings A/c 100

Current A/c 12.7

Availed Loan 9.3

3rd Party

Product 22.7

CHART -7:

104

0

20

40

60

80

100

Percentage

Percent

Accounts

Accounts the Respondents have with the bank

Savings A/c Current A/c Availed Loan 3rd Party Pdt

Interpretation:

The above data makes it very clear that only very few customers have availed loan

from the bank and invested in the third party products.

.

TABLE-8: Awareness of the respondents on the ATM services provided by IDBI.

Services

Frequenc

y Percentage

Withdrawal of

Cash 98 98

Deposit Cash/

Cheques 74 74

Balance

Verification 98 98

Requirement for 46 46

105

Cheque Book

Interpretation: The above data shows that 98% of the respondents are aware of cash

withdrawal and balance verification through ATM service of the bank whereas 74%

and only 46% are aware about depositing cash/ cheque and requirement for cheque

book/ statement respectively.

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TABLE-9: Awareness of the respondents on the internet banking services

provided by IDBI.

Services

Frequenc

y Percentage

Transfer funds 34 34

Bill/ Loan

Payment 26 26

DD/ Term Deposit

Request 22 22

Getting

Reminders 28 28

None 66 66

Interpretation: The above data shows that 34% of the respondents are aware of

transferring funds through internet banking services whereas only 28% and 26% are

aware about getting reminders and payment of bill/ loan respectively. It is also shown

that 66% of the respondents are not aware of any services provided by the internet

banking of IDBI.

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TABLE -10 :Awareness of the respondents on the mobile banking services

provided by IDBI

Services Frequency Percent

A/c Balance 42 42

Cheque Details 24 24

Reminders/ alerts 42 42

None 56 56

Interpretation: The above data shows that 42% of the respondents are aware of

checking account balance through mobile banking services whereas 42% and only

24% are aware about receiving reminders and knowing the cheque details respectively

through this service. It is also shown that 56% of the respondents are not aware of any

services provided by the mobile banking of IDBI.

TABLE -11: The various banks preferred for availing the loan.

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Name of Banks

Frequenc

y Percentage

Federal Bank 12 12%

ICICI 16 16%

SBI 14 14%

SIB 10 10%

IDBI 38 38%

Axis Bank 6 6%

HDFC 4 4%

Total 50 100

CHART -19:

Interpretation: The above data shows that out of the 50 respondents who has availed

loan 38% as availed it from IDBI, followed by 12% from Federal Bank, 16% from ICICI

and the rest from other few banks as shown in the chart.

TABLE -12: Reasons which influenced the customers choose a bank for the

loan.

Reasons Frequenc Percent

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y

Good customer service 18 18%

Low interest rate 28 28%

Quick processing 18 18%

Customer Satisfaction 4 4%

Simple Formalities 16 16%

Near to home/business/work place 12 12%

Promptness and knowledge of Staff 8 4%

Total 100 100

CHART -20:

Interpretation:

The above data shows that the attribute which the respondents give the first

preference for to choose a bank for availing a loan is lowest interest rate, followed by

good customer service, quick processing and so on.

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TABLE -13: Rating given to IDBI’s transaction speed when compared to the

other banks, the respondents have account with.

Ratings Percentage

Average 10%

Good 57%

Very Good 27%

Excellent 6%

Interpretation

The data above shows that 57% of the respondents have rated this attribute to be

good. So it is interpreted that the transaction time of IDBI is in par with other banks, the

respondents have account with.

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TABLE -14: Rating given to IDBI’s transaction cost when compared to the other

banks, the respondents have account with.

Ratings Percentage

Poor 1.2%

Average 32%

Good 58%

Very Good 7%

Excellent 1.8%

CHART-18

Interpretation:

The data above shows that 58% of the respondents have rated this attribute to be

good. So it is interpreted that the transaction cost of IDBI is in par with other banks, the

respondents have account with.

TABLE -15:

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Rating given to SIB’s technology & innovation when compared to the other

banks, the respondents have account with.

Ratings Percentage

Average 26%

Good 54%

Very Good 15%

Excellent 5%

CHART-19

Interpretation: The data above shows that 54% of the respondents have rated this

attribute to be good. So it is interpreted that the technology & innovation of IDBI is in

par with other banks, the respondents have account with.

SWOT ANALYSIS113

SWOT ANALYSIS:

Banking Sector

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SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses,

Threats and opportunities leading to gauging the competitive potential of the company.

STRENGTHS

1. Aggression towards development the existing standards by banks.

2. Strong regulatory impact by central bank on all the banks.

WEAKNESS

1. Poor technology infrastructure

2. Ineffective risk measures

OPPORTUNITIES

1. Increasing risk management expertise

2. Need significant connection between business credit and risk management and

information technology

THREATS

1. Inability to meet additional capital requirements

2. Loss of capital to entire banking system

3. Huge investment in technology

SWOT ANALYSIS: IDBI BANK

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STRENGTHS

It's the First Indian Bank to provide: ATM Next - an information portal on

ATMsInstant Account Opening Talking ATMs GiftCard - the Prepaid GiftCard, a

gift that cant go wrong EasyFill - Instant Mobile Refill Service; amongst many

other services

IDBI bank also actively manages:IPA services for CP issues , Debt Syndication

Acting as Collecting Bankers for IPO, Debt issues

The various business units comprise of 75% while support functions make up

for 12% and operations for the remaining 13% of the total manpower strength of

the bank

There are 99 branches in 69 cities

More than 297 atms are there of the bank

Financial advice extended to all customers free of charge

Minimum charge for a demand draft

Large number of cross products which are offered like NRI feedback account,

online tax payments,family care account , personal loans,CARD TO CARD

MONEY transfer.

WEAKNESS

Phone banking is provided only to those customers who maintain the

account above 100000

Weak customer base in jaipur in comparision to the SBBJ and ICICI bank

Basic focus is towords mid and high class people

Only one branch in jaipur

Working Hrs are less as comparision to ICICI BANK

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Jaipur branch do not provide any advisory services to the customers

No personal loan account , mutual fund advice to the customers

OPPORTUNITIES

Development of risk management strategies

– market risk – operational risk – credit risk

Product innovation and development

– NRI – credit – wealth management

Product delivery and channel management

– ATM – web – mobile and telebanking – branch

Alliance and franchise arrangements

Customer retention initiatives & customer relationship management

Development of new credit products for rural India

– weather insurance (rainfall, wind speed)

– life and non-life insurance

Extensive proliferation of both branches and ATMs in jaipur to extend the

market share

Expanding its branches in rural areas

THREATS

Very small marketing team of 7 to 8 executives

Extended banking hours of other banks

Fast catching concept of 365 days banking in jaipur

Linked accounts provided by other banks

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Increasing the market share of other banks due to aggressive selling

Increase in the number of foreign banks which provide high degree of value to

the customer

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FINDINGS

28% of the respondents fall under the age category of 36- 45 years.

72% of the respondents are males.

40% of the respondents are graduates (UG).

62% of the respondents are with service as their occupation, followed by 20% of

pensioners.

34% of the respondents have Rs. 5000- 15000 as their income level per month.

28% of the respondents are associated with the bank from the past 10- 13 years.

Only 22.7% of the respondents have invested in third party products, whereas

only 9.3% have availed loan from the bank.

The respondents have rated the bank good with regard to the fastness, the

personnel show in responding/ attending to the customer.

50% of the respondents have rated the bank good with regard to the transaction

time taken for cash deposit.

38% of the respondents have rated the bank good with regard to the easiness

the customers found to open an account with the bank.

63.3% of the respondents have rated the bank good with regard to the product/

service innovation in the past two years.

56% of the respondents have rated the bank, average, with regard to the

promptness in keeping the customers informed of deposit rates/ service

charges ; whereas the management rates it to be very good which reveals a gap

existing in this service between the two perspectives.

42% of the respondents have rated the bank average with regard to the quality of

the ATM services provided by the bank; whereas management rates it to be very

good which again reveals a gap existing in between the two perspectives.

42% out of the few who have availed loan from any of the bank have rated the

bank’s fastness in processing and disbursing loans to be good.

46% of the respondents have rated the bank average with regard to the interest

rate currently being offered. The management has rated this as good which

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shows a slight gap existing and also that the interest rate offered by the bank is

not much satisfactory to the customers.

38% out of the 50 respondents who use the internet and mobile facilities have

rated bank’s this facility to be average. The management has rated this as very

good which shows a slight gap existing and also the dissatisfaction of the

customers regarding this service.

Only 46% of the respondents are aware of the facility such as requirement for

cheque book/ statement through the ATM.

Only 30% and 24% of the respondents use the mobile and internet banking

facility of the bank respectively.

Interest rate offered by a bank is rated as the first attribute which a customer

considers to choose a bank before going for a bank loan.

The data shows that out of the 50 respondents who has availed loan 42% as

availed it from IDBI, followed by 12% from Federal Bank, 16% from ICICI and

the rest from other few banks as shown in the chart.

The data shows that the major competitor for the bank is ICICI bank, followed by

SBT Bank, SBI and others as shown in the table.

The data above shows that 44% of the respondents have rated this attribute to

be good. So it is interpreted that the customer service of IDBI is in par with other

banks, the respondents have account with

The data above shows that 57% of the respondents have rated this attribute to

be good. So it is interpreted that the transaction time of IDBI is in par with other

banks, the respondents have account with.

The data above shows that 58% of the respondents have rated this attribute to

be good. So it is interpreted that the transaction cost of IDBI is in par with other

banks, the respondents have account with.

The data above shows that 54% of the respondents have rated this attribute to

be good. So it is interpreted that the technology & innovation of IDBI is in par

with other banks, the respondents have account with.

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Majority of the respondents have found to have not received any privileges/

benefits for being a regular/ long term customer of IDBI.

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CONCLUSION

Customers always look for more user- friendly products and better interest rates

when compared to other banks they have account with, so, through product

innovation and competitive pricing strategy the bank can foster business

relationship with its customers. The gap analyzed can be minimized by better

technology, customer service and also by creating awareness about the various

services; thereby increasing the customer base. So as to retain the existing

customers and to build up customer loyalty, Customer Relationship Management

should be given more importance.

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SUGGESTION--

46% of the respondents felt that the interest rates on loan were high and hence

the interest rates may be reduced to attract more customers.

Only 28% of the respondents being female, the bank can look forward to design

few more schemes to attract the female customers.

Only 22.7% of the respondents having been invested in the third party products

the bank can look for promoting the same. The bank also has a huge scope for

this, with high income group NRI customers, in the area.

Since a large number of the respondents are unaware of the services provided

through internet(66%)/ mobile(56%) banking; initiatives, such as posting a list of

services that are rendered to the customers inside the bank premises, demo of

the services in the bank website; can be done to make the customers aware,

and use the services provided through ATM, internet and mobile banking of the

bank.

As the cross tabulation reveal, except one out of the few customers who have

been associated with the bank for the past 15-13 years have not been receiving

any privilege. It is therefore suggested to give privilege to its long term

customers so as to retain them.

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QUESTIONNAIRE ( For Customers ).

I will be thankful to the respondents, if you will spare 4-5 minutes from your valuable

time to answer this questionnaire, which will help, The South Indian Bank to reach upto

your expectations in Retail Banking and also finish my project towards the partial

fulfillment of MBA Degree.

1. Age:

25-35 yrs 36-45 yrs 46-55 yrs Above 55yrs

2. Gender: Male Female

3. Educational Qualification:

School UG PG

4. Occupation:

Student Service Business

Pensioner House-wife

5. Income Level:

Rs. 5000 – Rs.15000 Rs. 15001- Rs 25000

Rs. 25001- Rs. 35000 Above Rs. 35000

6. For how long are you associated with the IDBI? ( in mth/ yrs) _____________ .

7. In IDBI Bank, you have:

Savings A/c Current A/c Has availed any loan

Invested in any third party pdt like LIC, Mutual funds, etc.

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8. Please use a tick mark in the appropriate column to give your responses for the

following statements:

1=Strongly Disagree, 2= Disagree, 3= Neutral, 4= Agree, 5= Strongly Agree

S.No: 1 2 3 4 5

ATM Service

a. I don’t face any problem in withdrawing cash from ATM.

b. ATM services are useful for me to deposit cash & cheques.

c. ATM services are useful for me to require my Cheque book.

d. ATM services are useful for me to get the enquiry statement of

my account.

Internet Banking

e. It helps me to make an instant fund transfer or schedule a

transfer for the future date.

f. It helps me know the status of my Cheque.

g. It helps me in bill payment.

h. It helps me to get the interest details on deposit accounts.

i. It helps me get alerts like Deposit maturing soon, loan

repayment alert, minimum balance alert...

Mobile Banking

j. It is useful for me to get the balance in any of my accounts

instantaneously.

k. It is useful for to inquire on the Status of a cheque issued by

me.

l. It helps me to locate the nearest IDBI ATMs based on PIN

Code

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m. It helps me get alerts like Deposit maturing soon, loan

repayment alert, minimum balance alert...

n. I will be able to set my own time preferences for receiving

messages.

10. How many facilities out of the following are you aware of being provided through

the ATM services of IDBI?

Withdrawal of Cash

Deposit Cash/ Cheques

Balance verification

Requirement for Cheque Book/ Statement

11. How many facilities out of the following are you aware of being provided through

the internet banking of IDBI?

To transfer funds from the bank to personalized transaction.

Bill/Loan Payment

DD/ Term Deposit Request

Getting reminders/alerts.

None of the above.

12. How many facilities out of the following are you aware of being provided through

the mobile banking of IDBI bank?

A/c balance any time

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To know the cheque details

Receiving reminders/ alerts.

None of the above

13. What are all the attributes you consider to choose a bank before going for a bank

loan? (Rank them from 1= most preferred to 5= least preferred).

Interest rates offered

Security demanded

Efficient Customer Service

Repayment Period

Eligibility for loan (like your age, income,etc.)

14. Which were the all the banks in your consideration set when you planned for

availing a loan?

________________________________________________________________

__________________________________________________________________

15. Which bank did you finally prefer and what influenced you for that?

Bank: _______________

Reason: _____________________________________________

16. Which loan will you prefer the most to take from IDBI?( Pls rank these from 1- most

preferred to 6- least preferred)

Gold Loan Educational Loan

Personal Loan House Loan

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Vehicle Loan Agricultural Loan

17. Which are all the other banks you have account in, other than IDBI?

___________________________________________________________________

___________________________________________________________________

18. How do you rate IDBI when compared to those banks, in the following attributes?

E = Excellent VG = Very Good G = Good A = Average P = Poor

Attributes E VG G A P

Efficient Customer

Service

Time Saving

Transaction Cost

Technology & Innovation

19. Did you receive any privileges/ benefits for being a regular/long-term customer of

IDBI?

If Yes, what ___________________________________________________________

20. Did you find any drawbacks in the services of IDBI?

Yes No

21. If Yes, please give some suggestions to serve you better.

_________________________________________________

_________________________________________________

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_________________________________________________

_________________________________________________

22. Are you a Non Residential Indian?

Yes No

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BIBLIOGRAPHY

BOOKS

Zeithmal V. A., GremblerD.D., BitnerM.j., and PanditA.:Service Marketing Integrated customer Focus Across The Firm” , Fourth Edition

ZillurRahman, “Service Quality: Gap in the Indian Bank Industry” The ICFAI Journal of Marketing Management.

NareshK.Malhotra : Marketing Research – An applied orientation, Fifth Edition

Richard I.Levin,DavidS.Rubin –Statistics For Management, Seventh Edition

Kothari, C.R. : Research Methodology methods and techniques, (second revised edition),New Delhi, new age international (P) Limited publishers, 2008

Khan, M.Y. : Financial services, (Third Edition)

Generals & Articles-

1. ICFAI Journal of Banking

2. Internet retail banking:

Websites - www.idbibank.com

www2.idbibank.com

wwwgoogle.com

Magazines-

1. investment banking database: retail.

2. Pro.Bankers

3.Business world

4.India today

Newspapers- The Economics times ,The Times of India

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