Need Ananlysis of Banking Requirements of a Segment for Standard Chartered Bank

Segment Oil Industries

Project Done By :Hardik Shah PGP/SS/09-11/IIPM-I +91-9831203010 i_hardik@yahoo.com

About the Bank

Standard Chartered Bank is a British bank headquartered in London with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people. Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies. It now focuses on consumer, corporate, and institutional banking, and on the provision of treasury servicesareas in which the Group had particular strength and expertise. Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Holdings.

In this project, I have tried my best to evaluate the need for Banking Services of the Oil Industries in the area of West Bengal. Many valuable learnings have been derived by the survey carried out. These learnings have been analysed and evaluated to reach a strategic conclusion which is discussed in this project in the later part.

Acknowledgement
Here I would like to thank the people who have helped me complete this project by guiding me, supporting me and helping me in the best way possible.

Mr. Anirban Chakrabarty Mr. Harmeet Singh Dhingra

THANK YOU VERY MUCH

TABLE OF CONTENTS
Description
Products and Services Industry Analysis Introduction SWOT Analysis Research Proposal Data Analysis & Results Conclusion & Recommendations Bibliography Questionnaire

Page Number
1-3 4-6 7-11 12-13 14-15 16-27 28 29 30-36

Products & Services

Standard Chartered bank provides different products and services in order to cater the needs of the customers which can be broadly classified into the following categories: Personal banking: To cater the diverse financial needs, Standard Chartered offers a wide range of premium banking products and services through its network of 81 branches in 31 cities across the country. As a privileged customer of this bank, the customers can always be assured of a banking service that is flexible enough to tailor-make a product suite to take care of his specific banking needs.

SME Banking: SME Banking provides integrated financial solutions to small and medium businesses, through a relationship management approach. Its customer focused product offerings include working capital finance, trade services, foreign exchange, and cash management.

Commercial banking: Standard Chartered has maintained a long local presence, since 1858, with particular emphasis on relationship banking. Significant networks have been established with vendors and financial-related organisations to enable it to offer the customers a comprehensive range of flexible financial services, with special focus on transactional banking products. Supported by state-of-the-art operations, Standard Chartered is pro-active in improving every part of services. Electronic Delivery system has been put in place to ensure that transactions are handled speedily. It has its Cash Product Specialists and dedicated Customer Service Centres to provide its customers with effective solutions. I. WHOLESALE & INSTITUTIONAL BANKING

1)Funding
Working capital or Capex or Acquisition finance Loans or NCDs Rupee or foreign currency Fixed or floating rate Flexibility in tenor

2) Transaction banking Cash management Collection Payments Webbank Liquidity management Trade finance Letter of credit Channel finance Import or export services Guarantees 3) Global markets FX and derivatives Funds management Syndication & structured finance Corporate advisory Fixed income & structure solution II.RETAIL BANKING

1) Online services
Net banking 2) Deposits Parivaar Axcess plus Savings & current account Business plus account 2 in 1 account Term deposit account 3) Loans Homesaver Mileage Smart credit Car finance Personal finance Mortgage Flexireserve

4) Credit cards The new visa mini Air sahara chartered gold card DIVA Sapnay RCI gold card Classic card Gold Card Executive card 5) Demat 6) Investment

7) NRI NRO NRE FCNR(B)

Industry Analysis
The first step to analyze any industry is through the Michael Porters Five Forces Analysis

Supplier Power: We can take the suppliers of Standard Chartered Bank as its manpower, RBI and other regulatory bodies of the Government. All these suppliers influence the pricing of the products offered. If the bank has less manpower, it has to keep the price of products higher to earn adequate profits and if the bank has higher manpower, it may offer products at lower price. Similarly RBI decides the several bank rates and interest rates which have an effect on pricing of the banks products.

Buyer Power: Here we see how easy it is for buyers to drive prices down. Again, this is driven by the number of buyers, the importance of each individual buyer to the business, the cost to them of switching from this banks products and services to those of someone else, and so on. Products are generally designed keeping in mind the benefits, interests and needs of the customer. So buyers of these products do influence the structure of the products and the bank keeps in mind the needs of the buyers and deliver what they actually expect. If this does not happen, the buyers are bound to take the products and services from some other bank.

Competitive Rivalry: What is important here is the number and capability of the competitors if the bank has many competitors, and they offer equally attractive products and services, then it will most likely have little power in the situation. If suppliers and buyers dont get a good deal from Standard Chartered Bank, theyll go elsewhere. On the other hand, if no-one else can do what Standard Chartered Bank can do, then it can often have tremendous strength. There are some products of Standard Chartered Bank like the Priority Banking Service which very few banks have.

Threat of Substitution: This is affected by the ability of the banks customers to find a different way of doing what Standard Chartered Bank does. For example: Standard Chartered Bank offers Insurance Policies through Bajaj Allianz. There are charges involved in almost all policies. If a customer finds the same type of policy, that is offered by Standard Chartered, with some other bank with lower charges being cut, then he is bound to go to the latter bank. It may also happen that some other bank is offering better banking facilities at competitive rates than Standard Chartered. It is a threat for Standard Chartered Bank then.

Threat of New Entry: Power is also affected by the ability of people to enter the banking market. If it costs little in time or money to enter the market and compete effectively, if there are few economies of scale in place, or if the bank has little protection for its key technologies, then new competitors can quickly enter the market and weaken Standard Chartered Banks position. If the bank has strong and durable barriers to entry, then it can preserve a favorable position and take fair advantage of it. One barrier of entry could be the unique product like Priority Banking the bank has. If such unique customer-oriented products are designed, which are difficult to adopt by other banks, then the threat of new entry can be very well managed.

The second step in Industry Analysis is the PEST Analysis

Political: Political Environment can influence the functioning of the banking system in a huge way. Due to the Political Reforms, several policies and rules are imposed by the Government due to which the Banking Rates fluctuate. There may be strike by the Bank employees or even by the Union of Bank employees who are directly not associated with Standard Chartered Bank. This may prove fatal for the bank in terms of operations and customer satisfaction.

Economic: Economic conditions are very closely related with the banking operations. Equity and Debt market constitute the economic conditions of a country related to banks. In the fluctuating equity markets, the share prices of various companies fall and rise. These companies include the bank themselves, competitors, customers and even sometimes the suppliers. Bank also invests its money in markets and hence the returns of the Bank also fluctuates.

Social: Social conditions include the demography and the age, occupation, lifestyle, education trends etc of the customer. This highly drives the business for a Bank. Standard Chartered Bank generally serves the upper middle class section of the society and SME and Large scale companies only. The products are designed to suit the requirements of these.

Technological: Research, inventions, discoveries, usage of information technology etc. deal with the technological analysis. Banking in India has gone through a rapid technological uplift since a decade. All banks are now computerized. But does that only mean they are advanced? Standard Chartered Bank offer internet banking facility which is better than any other banks internet banking. The features included in internet banking of Standard Chartered Bank are much more. Mobile Banking is also a very widely used feature of the bank. Technology is getting advanced day by day with all the banks racing to adopt the latest technology as soon as possible to get the attention of maximum customers and serve them better.

Introduction to the Organisation

Standard Chartered Bank is a British bank headquartered in London with operations in more than seventy countries. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) and employs 73,000 people. Despite its British base, it has few customers in the United Kingdom and 90% of its profits come from Asia, Africa, and the Middle East. Because the bank's history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies. It now focuses on consumer, corporate, and institutional banking, and on the provision of treasury servicesareas in which the Group had particular strength and expertise. Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is a constituent of the FTSE 100 Index. Its largest shareholder is Temasek Holdings

The name Standard Chartered comes from the two original banks from which it was founded and which merged in 1869 The Chartered Bank of India, Australia and China, and The Standard Bank of British South Africa The Chartered Bank was founded by Scotsman James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by another Scotsman John Paterson. Both companies were keen to capitalise on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa. In those early years, both banks prospered. Standard Chartered Bank has a major branch in Kolkata. Chartered opened its first branches in Bombay, Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. With the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871, Chartered was well placed to expand and develop its business In South Africa, Standard, having established a considerable number of branches, was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London.

Both banks at that time still quite separate companies survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of loss of business and closure of branches. There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the 50s and 60s. Each had acquired other small banks along the way and spread their networks further. In 1969, the banks decided to merge and to counterbalance their existing network by expanding in Europe and the United States, while continuing their expansion in their traditional markets in Asia and Africa.

In 1986 Lloyds Bank of the United Kingdom made a hostile takeover bid for the Group. The bid was defeated however it spurred Standard Chartered into a period of change, including a series of divestments notably in the United States and South Africa.

In 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing its presence in private banking and further expanding its operations in India and Pakistan. Standard Chartered retained Grindlays' private banking operations in London and Luxembourg and the subsidiary in Jersey, all of which it integrated into its own private bank. This now serves high net worth customers in Hong Kong, Dubai, and Johannesburg under the name Standard Chartered Grindlays Offshore Financial Services. In India, Standard Chartered integrated most of Grindlays' operations, making Standard Chartered the largest foreign bank in the country. On 15 April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Since then the bank has rebranded the branches as SC First Bank. Standard Chartered completed the integration of its Bangkok branch and Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank (Thailand)

Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand private wealth management in Asia and the Middle East, and acquired stakes in ACB Vietnam, Travelex, American Express Bank in Bangladesh and Bohai Bank in China. On 9 August 2006 Standard Chartered announced that it had acquired an 81% shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. This deal represented the first acquisition by a foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth largest bank. On 22 October, 2006 Standard Chartered announced that it had received tenders for more than 51 per cent of the issued share capital of Hsinchu International Bank (Hsinchu), established in 1948 in Hsinchu province in Taiwan. Standard Chartered, which had first entered Taiwan in 1985, acquired majority ownership of the bank, Taiwans seventh largest private sector bank by loans and deposits as at 30 June, 2006. Standard Chartered merged its existing three branches with Hsinchu's 83, and then delisted Hsinchu International Bank, changing the bank's name to Standard Chartered Bank (Taiwan) Limited). Prior to the merger, Hsinchu had suffered extensive losses on defaulted credit card debt. In 2007, Standard Chartered opened its Private Banking global headquarters in Singapore. On 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percent of an Indian brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India Ltd., with the option to raise its stake to 75 percent in 2008 and, if both partners agree, to 100 percent by 2010. UTI Securities offers broking, wealth management and investment banking services across 60 Indian cities. On 29 February 2008, Standard Chartered PLC announced it has received all the required approvals leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American Express Company (AXP). The total cash consideration for the acquisition is US$823 million. On 12 September 2009, The Times newspaper in the United Kingdom reported that Standard Chartered had signed a record equaling 20million a season sponsorship deal with Liverpool FC to commence at the start of the 2010/2011 English Premier League season and last for four years. Liverpool football club announced on the club's official website on 14 September 2009 that Standard Chartered bank will be the new shirt sponsor starting from 2010 to 2014. On 27 November 2009, Dow Jones Financial News reported the city of Dubai will restructure its largest corporate entity. Standard Chartered is the most significantly impacted financial institution with $7.77bn in loan exposure to Dubai and the UAE. This amounts to 4.2% of Standard Chartered's total loans outstanding. Other impacted banks included HSBC, Barclays, and RBS.

Mission Statement of Standard Chartered Bank

To offer outstanding value to our customers by providing knowledgeable, efficient and reliable services in a personal, helpful and responsive manner. Over the 150 years of quality services that SCB has provided to its customers, the Bank has had various mission Statements. However this is the one that is currently being followed by the organization

Brand Values:
From the above mentioned mission statement the bank has developed some very deep-rooted brand values. These values are mainly designed with the intention of communicating with the customers. However they also serve the purpose of showing each employee exactly what a customer expects when he walks into Standard Chartered. The employees are constantly reminded of the customer expectations and have to continuously evaluate how their behavior is conformant with what the customers have in mind. This is why it is common practice to display these values in almost each department and on all the notice boards. These values are there for all employees and apply especially to the personal loans department. As it is the people of this department who are mainly going out to meet the customers and getting the opportunity to communicate these values to them. The values that have been developed over the 150-year life of this organization are as follows: Courageous A commitment to being there for you, in good times and bad. We help you achieve your aspirations by guiding you towards the right choice, not just the easy one. Responsive We are good on our word. We are accessible whenever and wherever you need us. Not only do we strive to deliver solutions, we also aim to exceed your expectations. International We understand the balance between global and local. You trust us to be established and internationally networked, while at the same time sensitive to your individual needs. Our strong network across culture helps us build stronger relationships based on ideas, not formulae.

Creative Creative thinkers are not limited by convention. They allow their minds to soar beyond predictable solutions. That's how we approach each challenge posed to us, which is why we base our products and services on ideas that are innovative, perceptive and instinctive. Trustworthy We respect you, and the life you live. By understanding your needs and tailoring the right financial solutions for you, we earn your trust.

SWOT Analysis
A SWOT Analysis is used to evaluate a company's strengths, weaknesses, opportunities and threats. This report examines Standard Chartered PLC's key business structure and operations, history and products, and it provides summary analysis of key revenue lines and strategy. Strengths

Strong presence in India 150 years of banking in India. Provides the convenience of online banking to access information about various accounts and also transfer money Strong Brand Name worldwide presence. Variety of services offered Weaknesses ATM coverage not as good as other private banks Services do not cater to the mass Advertising is not aggressive Credit card facilities not as good as other private banks Not many branch networks Opportunities

Government removed restrictions on foreign banks in 2009, allowed those banks to open shop in India. Standard Chartered has an opportunity to increase its branches in India, and further utilize its brand image here. Scope for more effective use of their brand name Can start new departments like a brokerage firm

Threats

Emergence of Indian private banks Nationalization of banks these banks have many more branch networks than foreign banks

Some unique strategies: o To build and grow strong businesses in East and South East Asia- the Asia Pacific Region. o To enhance historical position in the Middle East and South Asia region. o To provide support in newly industrialized and emerging markets. o Capitalize on the good track record in these regions by building unique position and image among the target customer segment and being responsive to the needs and serve better than the competitors. o To concentrate operations in the activities that have direct impact on the communities of the countries; help the country and its economy and at the same time earn profit in an ethical way.

RESEARCH PROPOSAL
Research Objective The objective of the study is to: Compare the preference of customers on different investment scheme and the purpose of investment on the basis of age, occupation and income of the customers. To find and study the amount that customers wants to invest and how many customers want to invest. To find the type of risk that customer is willing to take and the time duration for which he is willing to invest. To develop recommendation for the banks as to how the banks can gain more market share. Research Methodology In order to accomplish the objectives of the research study, we have conducted Primary Research as the research revolves around customers preference for various products and services provided by the banks. Questionnaire Framing The questionnaire was designed to find how the parameters (like age, occupation, income) influence the customer in various kind of investment. The questionnaire also provides us various valuable insights related to: Deposit Scheme preferred. Preference for investment. Initial investment Type of risk. Purpose of investment. Time duration of investment Sampling Plan Sampling unit: For this research I have chosen West Bengals Oil Industries as the sample unit because its a developing region.

Sample Size: The final questionnaire was administered on 200 respondents. Age Group: 18yrs to 60yrs (and above) The sample procedure followed for this research is Random Sampling. I have taken due care while the respondents were filling out the questionnaire to ensure completeness of the same. All the duly filled questionnaire have been carefully examined and tabulated in excel sheet. I have used several graphical techniques like Frequencies, Pie Chart, Cross Tabulation, Bar graph, Line Graph, Trend line etc on primary data gathered to get meaningful results and analysis.

DATA ANALYSIS & RESULTS

Trend analysis and Pie chart:

People who want to invest according to age group:

People Willing to Invest
Count

70 60 50 40 30 20 10 0

Yes No

18-30

31-45

46-60

above 60

Age(in Yrs)
People Willing To Invest

13% 11%

1% 18-30 31-45 46-60 75% above 60

It is clear from the graph that people of age up to 45 years are willing to invest but after the age of 45 years the percentage is decreasing. So it can be concluded that with age the priority for investment decreases. 75% of people who are of age group of 18-30 are ready to invest. And 11% of people who are age 31-45 are willing to invest and 13 % of age group of 46-60.

Priority of Investment with Regards to Age Group:

Priority Count 18 16 14 12 10 8 6 4 2 0 18-30

Bank account Fixed account Insurance Mutual Fund Others Real state Shares/Stocks 31-45 46-60 above 60

Age group

Priority

Bank account 27% 9% Fixed account 14% Insurance Mutual Fund 11% 0% 16% 23% Others Real state Shares/Stocks

Respondents of age up to 45 years are interested in investing in stock/shares. Whereas the ratio of investors in stocks decreases as the age increases and the ratio of investor in insurance sector increases. In the age group of 46-60 the priority of fixed account increases. From pie chart it can be seen that investors in the stock market is maximum with 27% of the whole population after that comes Insurance with 23% , investors in mutual fund 14%, in bank account it is 9% and in real estate it comes to around 11%.

Initial Investment Amount According To Age Group:

Initial Investment

Count 70 60 50 40 30 20 10 0 18-30 31-45 46-60 Age (in Yrs) above 60 40000-50000 30000-40000 20000-30000 10000-20000 More than 50000 Less than 10000

Initial Investment

13% 17% 35%

10000-20000 20000-30000 30000-40000 40000-50000 Less than 10000

20%

6%

9%

More than 50000

From the line graph it can be concluded that with the age of the respondents the amount of investment decreases. People who are of age 18-45 are likely to make high investment and between 45 to 60 are likely to go for medium investment and above 60 very low investments. From the pie chart it is clear that 35% of people want to invest in the range of 10k-20k, 20% in the range of 40k-50k, 70% less than 10000, 13% more than 50k, 9% in the range of 20k-30k and 6% in the range of 30k-40k.

Risk that Customer Willing to Take Age Wise:

Count 80 60 40 20 0 18-30 31-45 46-60 above 60 No Risk Modereate Low High

Risk

8% 37% 20% High Low Modereate No Risk 35%

When it comes to taking risk most of the people do not want to take risk. The maximum being the people of age group of 18 to 30. And majority of the people who are willing to take low and moderate risk are also from the same group. In case of high risk only people of 18 t0 31 years are wiling. From the pie chart it is clear that 37% of the people are not willing to take any risk, 35% are willing to take moderate risk, 20% are willing to take low risk and 8% are willing to take high risk.

Purpose of Investment With Accordance To Age:

Respondents Purpose of Investment

Count 70 60 50 40 30 20 10 0 18-30 31-45 Age (in Yrs) 46-60 above 60 Tax Saving Pension Other Medical/ Health care Marriage Child Education

Purpose of Investment

19% 2%

14% 9% 6% 50%

Child Education Marrige Medical/ Health care Other Pension Tax Saving

Majority of the people are investing for the purpose of tax saving and for the purpose of pension and for other purpose. Very few of the people are investing for child education and marriage and medical purposes. It has been found that 50% of the people are investing for same purpose, 19% are investing for tax saving, 14% are investing for child education, 9% are investing for marriage, 6% for medical health.

Investent Duration According to Age:

Duration

Count 40 30 Long 20 Medium 10 0 18-30 31-45 Age 46-60 above 60 Short

Duration
35 30 25 25 20 15 10 5 0 18-30 31-45 46-60 above 60 7 9 6 6 7 1 Long Medium Short 33

In the terms of duration of investment people of age 18-31 are interested in short term investment whereas people of age 31-46 are more interested medium term investment where as for long term investment very few people are interested.

People of Different of Income Group versus Willingness to Invest:

People likely to go for Investment

Count 30 20 No 10 0 10000-20000 20000-30000 30000-40000 above 40000 Income <10000 Yes

Ready to Invest

32%

24%

10000-20000 20000-30000 30000-40000 above 40000

13%

23% 8%

<10000

From the trend analysis it is clear that people from all the income group are willing to invest, only few of them are refusing to invest. It is high among the respondents whose income is less than 10k. From the pie chart it is clear that 32% belong to the income group less than 10k, 23% belong to 20k to 30k, 24% belong to 10k to 20k, 8% belong to 30k to 40k, 13% belong to above 40k.

Respondents Investment option versus Income:

Investment Options

Count 10 8 6 4 2 0 <10000 1000020000 2000030000 Income 3000040000 above 40000 Bank account Fixed account Insurance Mutual Fund Others Real estate Shares/Stocks

Investment Priority

10% 14% 0% 14%

10% 21%

Bank account Fixed account Insurance Mutual Fund Others Real state Shares/Stocks

31%

Most of the people of income group less than 10000 are opting for insurance People of income group between 10000- 20000 are opting for share/stocks. According to the pie chart 31% people are investing on Insurance, 14% are investing in real estate and mutual fund, 21% are investing in fixed account,10% are investing in share and bank account.

Initial Investment Amount according to Income:

Initial Investment

Count 40 30 20 10 0 <10000 1000020000 2000030000 3000040000 above 40000

More than 50000 Less than 10000 40000-50000 30000-40000 20000-30000 10000-20000

Income

Initial Investment

14% 31%

10000-20000 20000-30000 30000-40000 40000-50000 0% Less than 10000 More than 50000

55%

Most of the people are willing to invest more than 50000. And very few people want to invest between 10000-20000. 55% of the population is ready to invest less than 10k, 14% is ready to invest more than 50k and 31% is ready to invest between 10k to 20k.

Risk exposure versus Income group:

Risk Exposure

Count 40 30 20 10 0 <10000 10000-20000 20000-30000 30000-40000 above 40000 No Risk Moderate Low High

Income

Risk Exposure
Count of Respondents
14 12 10 8 6 4 2 0 <10000 1000020000 2000030000 Income 3000040000 above 40000 High Low Modereate No Risk

People do not want to take risk and from the graph we can see that with growing income, number of people also increase for moderate risk but up to certain limit after that it again falls. From the bar chart it is clear that those who are earning less than 10k are willing to take moderate risk. Majority of the respondents of income group 10k to 20 k are willing to take low risk. It is same with the income group of 20k to 30k, and people of income group of 30 to 40k and above are willing to take no risk.

Purpose of investment as Compared to Income:

Purpose Of Investment . Count

40 30 20 10 0

Tax Saving Pension Other Medical/ Health care Marriage

<10000

1000020000

2000030000

3000040000

above 40000

Child Education

Income

Purpose of Investment

24%

17% 14%

Child Education Marrige Medical/ Health care Other Pension Tax Saving

7% 21% 17%

Most of the people in lower income group are investing for the purpose of tax saving and pension. From the pie chart it is clear that 24% is investing for tax saving, 17 % for child education 21% for other purposes, 14% for pension, 7% for pension, 17% for medical purpose.

Income versus Investment Duration:

Investment Duration

Count 40 30 Short 20 Medium 10 Long 0 <10000 10000-20000 20000-30000 30000-40000 above 40000 .

Income

Duration of Investment
18 16 14 12 10 8 6 4 2 0 <10000 1000020000 2000030000 Income 3000040000 above 40000

Count of Respondents

Long Medium Short

Most of the people would like to go for short term investment. It is clear that the proportion of investment decreases as the income group increases but after 30k of income it again increases. From the bar chart it is clear that people of income group less than 10k are willing to go for medium time investment, where as people of income group 10k to 40k are willing to go for short term investment.

CONCLUSION AND RECOMMENDATIONS

On the successful completion of my research, I conclude that factors like age, income and occupation influences customers attitude towards selecting bank, banking product and services, risk taking ability and their need for change. Influence of Age: Customers of segment 18yrs-30yrs and above 60 are more likely to go for investment compared to the customers of other segment Customer of young age wants to go for investment in shares and stocks. Majority of the people of age group 18yrs to 45 yrs are investing for the purpose of tax saving and for the purpose of pension and for other purpose. Very few people are investing for child education and marriage and medical purposes. Majority of the people of age group 18-30yrs want to go for low risk. But people of age 30-45 yrs want to go for medium risk. Majority of people of all age group want to go for short term Investment. Influence of Income: People from all the income group are willing to invest, only few of them are refusing to invest. And people of low income group are more interested in investment. There are very few people who want to go for large amount of investment. People are more interested in making small investment. People do not want to take risk and with growing income number of people also increases for moderate risk but up to certain limit after that it again falls. People of lower earning groups are willing to take moderate risk. Majority of the respondents with income of 20k to 30k are willing to take moderate risk. Again it is opposite with people of higher income group Most of the people in lower income group are investing for the purpose of tax saving and pension. Most of the people would like to go for short term investment. It is clear that the proportion of investment decreases as the income group increases. People of income group less than 10k are willing to go for medium time investment, where as people of income group 10k to 40k are willing to go for short term investment.

BIBLIOGRAPHY: 1. The Economic Times 2. www.finance.indiamart.com 3. www.standardchartered.co.in 4. www.amfiindia.com 5. www.mutualfundsindia.com 6. Investors India, Bajaj Capital Publication

QUESTIONNAIRE
Dear Sir/Madam,

I am a student of Indian Institute of Planning & Management, Kolkata and presently doing a summer internship project on Need Analysis for Banking Requirements. I request you to kindly fill the questionnaire below and I assure you that the data generated shall be kept strictly confidential.

Name: ..

Address: ..

Contact No :( O) (M)

City: ...............Pin: .State: .

1. What is the business dealing in?

2. How old is this business? Less than 1 year Between 2 to 5 years More than 5 years Between 5 to 10 years More than 10 years

3. What is the scope of this business? Local National International

4. Other branches of the company are located? Locally In Mumbai In Delhi In Chennai No other branch

If any other place please specify..

5. Is your business open on Sundays? Never Quite Often Some times

6. Annual Turnover of your Company. Less than 50 lacs Between 50 lacs to 1 crore Between 1 to 50 crores Between 50 to 100 crores More than 100 crores

7. Are you the sole proprietor of the company or there are any partner(s)? Yes No

8. You receive your payments mostly through? Cash Cheques Drafts Account Transfers

9. You make payments mostly by? Cash Cheques Drafts Account Transfers 10. Who is your existing Banker? SBI ICICI AXIS HSBC HDFC CITI PNB

If any other please specify

11. How long have you been banking with your Bank? Less than 1 year 2 to 5 years 5 to 10 years More than 10 years

12. How you deposit and withdraw your cash? Personally By other person Your Bank Offers any facility in this regard

13. How often do you have to visit the branch? Almost every day Once/Twice a week Once/Twice a month Quite often

14. Can you access your account from any Branch which you are close to? Yes No Not Sure

15. How many cheques do you use in a month? Less than 5 Between 5 to 10 Between 10 to 25 More than 25

16. How do you order for a cheque book? By visiting the Branch Telephone Online

17. What is the amount of the drafts that you make in a month? Less than 10 lacs Between 10 to 25 lacs Between 25 to 50 lacs More than 50 lacs

18. Have you ever accessed your account on the Internet? Yes, quite often Sometimes Never Net Banking Facility not Available

19. Which features of your existing Bank you like?

20. Are there some areas you think your existing Bank can improve on?

Date: Place: Signature

Thank You

THANK YOU