Retail Banks in Kanpur The Growth Drivers

Project Guide:

Submitted By:

Mr. Sanjay Kumar Singh Kanodia

Manager Customer Relations, Standard Chartered Ban , %an&ur

Swati
MBA- 2nd year, !"S#$M '2(()-*(+
1

PR,-AC,
With myriad trends shaping the global retail banking landscape, it is sometimes difficult to see the big picture through the clutter of news and information that so often blocks a clear view of highly complex industries. Yet the fact remains that the retail segment brings in nearly 6 percent of the total banking revenues worldwide. !t is therefore critical to gain a clear perspective of this industry. "he issue of retail banking is extremely important and topical. #uch of the growth in the worldwide banking industry can be attributed to the surge in the retail$banking sector in the %sia &acific region and the countries of 'atin %merica. "he (anking industry in the economies o. Bra/il, Russia, "ndia and china 'BR"C+ has been showing exemplary growth. "he higher growth of retail lending in these emerging economies is attributable to fast growth of personal wealth, favourable demographic profile, rapid development in information technology, the conducive macro$economic environment, financial market reforms, and several micro$level supply side factors. "raditional barriers to open markets ) both regulatory and political $ are falling around the world and should continue to crumble, piece by piece. %t the same time, maturing markets and significant consolidation in highly developed Western economies are forcing ma*or players to sharpen their value propositions at home. %s domestic battles for differentiation become fiercer and as numerous players attempt to plant flags in the same emerging markets, overall competition in the industry is becoming more and more intense. "he retail ban ing scenario in "ndia has been going through a similar kind of transformation since the past decade. +etail banking in !ndia has fast emerged as one of the ma*or drivers of the overall banking industry and has witnessed enormous growth in the recent past. (anking as a whole is undergoing a change. % larger option for the consumer is getting translated into a larger demand for financial products and customisation of services is fast becoming the norm than a competitive advantage. "hus, the fact that +etail (anks are one of the essential and inevitable growth engines of the economy cannot be denied. % well functioning economy cannot do without them. "hey perform a wide variety of functions from accepting deposits to granting loans to managing the wealth of clientele. "heir sound existence keeps the economy functioning well. "he, pro*ect Retail Banks in Kanpur The Growth Drivers , aims to analyse the most preferred banks in ,anpur and the reasons for operating with such banks. !t also includes an empirical study of the branch banking operations of -tandard .hartered (ank and promotion of e-aver.
/

0able o. Contents
1. 0eclaration11111111111111111111111111111.2 2. .ertificate11111111111111111111111111111...3 /. %cknowledgement11111111111111111111111111.6 2. 4xecutive -ummary1111111111111111111111111...5 3. !ntroduction111111111111111111111111111116 6. What are +etail (anks7..................................................................................................8 5. -cenario of +etail (anking in !ndia1111111111111111111.1 6. +esearch #ethodology11111111111111111111111112 8. 9b*ectives of +esearch11111111111111111111111113 1 . "ools used for 0ata .ollection11111111111111111111116 11. +etail (anking -cenario in ,anpur1111111111111111111.15 12. :eographical 0istribution of (anks in ,anpur11111111111111...16 1/. %nalysis and ;indings of the -econdary 0ata111111111111111.18 12. %nalysis and ;indings of the &rimary 0ata1111111111111111.26 13. % (rief <istory of -tandard .hartered (ank111111111111111.../6 16. -.( 9rgani=ation -tructure11111111111111111111112 15. -.( (usiness111111111111111111111111111...21 16. -.( 9rgani=ation -tructure, ,anpur111111111111111111..22 18. (ranch (anking 9perations of -.(11111111111111111112/ 2 . 0aily .ash +elated %ctivities111111111111111111111..2/ 21. &rocess of .learing of .he>ues11111111111111111111...26 22. "ypes of .learing11111111111111111111111111.26 2/. ;acility of -afe 0eposit 'ockers11111111111111111111..31 22. -avings %ccount11111111111111111111111111..3/ 23. .urrent %ccount11111111111111111111111111...33 26. "erm 0eposit111111111111111111111111111...36 25. .redit .ards1111111111111111111111111111.36 26. !nsurance11111111111111111111111111111..36 28. &riority (anking11111111111111111111111111...38 / . Wealth #anagement111111111111111111111111138 /1. 0escription of e-aver111111111111111111111111...6 /2. .omparative %nalysis of e-aver 11111111111111111111.62 //. %nalysis and ;indings of &rimary 0ata11111111111111111...63 /2. ?iews of 4xperts 11111111111111111111111111.66 /3. -uggestions and +ecommendations1111111111111111111.5 /6. .onclusion1111111111111111111111111111...51 /5. (ibliography11111111111111111111111111115/ /6. @uestionnaire111111111111111111111111111...52

#,C1ARA0"$2
!, -wati ,anodia, hereby declare that the pro*ect report entitled 3Retail Ban s in %an&ur 4 0he Gro5th #ri6ers7 has been written and submitted by me to (anasthali Aniversity in partial fulfillment of the re>uirement for the degree of #(%. "his is my original work and the conclusions drawn therein are based on the data collected by myself.

! further declare that this pro*ect work has not been submitted to this or any other university for the award of any other degree or diploma or e>uivalent course.

Ac no5ledgment
!t is a pleasure to record my thanks and gratitude to persons and organi=ations whose generous help and support enabled me to complete this pro*ect within the stipulated time period. #y special thanks are due to Miss 0eresa Rathore, -enior +esourcing #anager, -tandard .hartered (ank, and Mr8 0a&as Maitra, (ranch #anager, ,anpur for providing me with an opportunity to work in -tandard .hartered (ank. With deep gratitude and respect, ! would like to thank my pro*ect guide , Mr8 Sanjay %umar Singh, #anager ) .ustomer +elations, for his valuable support and criticism. Without his guidance, support, encouragement and timely help this pro*ect would not have been possible. ! pay my due regards and gratitude to Mr8 9inay Rai B+elationship #anagerC, Mr8 %eshari $jha B.ustomer 4xperience #anagerC, Mrs8 Sangeeta Mu herjee B %ssistant +elationship #anagerC, Mr8 Rachit Sri6asta6a B&ersonal ;inancial #anagerC and Mr8 9i as Mishra B!nvestment %dvisorC for giving me the benefit of their precious time, knowledge, experience and suggestions at all times. ! am especially greatful to #r. ?inay +ai and #r. ,eshari 9*ha for their support and for the wealth of knowledge that they have shared with me. ! also owe a special thanks to Mr8 0arun :ha who was of great help in the compilation of the pro*ect. ! am greatly indebted to all those persons who have helped me in some way or other in the completion of the pro*ect. "he .aculty of my institute deserves the praise for their role in shaping this summer training pro*ect. 'ast but not the leastD ! would like to mention that had it not been for the support, encouragement and unconditional love of my family and friends, this pro*ect would not have been possible. ! thank them for the freedom, support and encouragement that they gave me. <owever, ! take the responsibility of all my shortcomings. -wati ,anodia

,;ecuti6e Summary
+etail banking will remain the dominant source of revenue for banks worldwide through 2 13. !n 2 6, the retail banking business accounted for E1.22 trillion in revenues, or about 35F of the global banking revenue pool of E2.13 trillion. "hrough 2 13, retail revenues will expand at an estimated compounded annual growth rate B.%:+C of /.2 F in real terms. ;actoring in an inflation rate of roughly /F, overall growth should add up to about 6 to 5 percent. .ompetition in the global retail banking industry will become increasingly intense. "n "ndia total asset si=e of the retail banking industry grew at a rate of 12 F to reach a value of G66 billion in 2 3. "his growth in retail banking sector has helped in the growth of the overall banking sector. !n future the retail banking industry in !ndia is likely to reach a value of G/ billion by 2 1 . +etail banking has immense opportunities in a growing economy like !ndia. A8 08 %earney, a global management consulting .irm, recently identified !ndia as the Hsecond most attractive retail destinationH of / emergent markets. While retail banking offers phenomenal opportunities for growth, the challenges are e>ually daunting. <ow far the retail banking is able to lead growth of the banking industry in future would depend upon the capacity building of the banks to meet the challenges and make use of the opportunities profitably. <owever, the kind of technology used and the efficiency of operations would provide the much needed competitive edge for success in retail banking business. ;urthermore, in all these customers< interest is o. &aramount im&ortance8 "here is therefore a need of constant inno6ation in retail banking. !n bracing for tomorrow, a paradigm shift in bank financing through innovative products and mechanisms involving constant upgradation and revalidation of the banksI internal systems and processes is called for. (anks now need to use retail as a growth trigger. "his re>uires product development and differentiation, innovation and business process reengineering, micro$planning, marketing, prudent pricing, customisation, technological upgradation, home J electronic J mobile banking, cost reduction and cross$selling. "he retail banking scenario in ,anpur is no exception to this trend. !t has been continuously progressing and transforming for good. "his pro*ect is an attempt to study the retail banking business in ,anpur, to identify what goes in making a bank being labeled as the K(est (ankI, what is it that makes a bank as an ideal choice when almost all of them are offering similar products and services, where is there room for improvement and how can this be done.

"20R$#=C0"$2
$rigin o. the 5ord "he name bank is derived from the !talian word banco HdeskJbenchH, used during the +enaissance, who used to make their transactions above a desk covered by a green tablecloth. "he essential function of a bank is to provide services related to the storing of value and extending credit. "he 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. !hat is Ban ing> %ccepting deposits of money from the public 'ending and !nvesting 0eposits are repayable on demand and withdrawable by che>ue, drafts, orders ;acilitate money transactions such as wire transfers and cashier checks. !ssue credit cards, %"#, and debit cards. 9nline banking -torage of valuables, particularly in a safe deposit box.

,6olution o. Ban ing in "ndia (anking in !ndia originated in the last decades of the 16th century. "he oldest bank in existence in !ndia is the -tate (ank of !ndia, a government$owned bank that traces its origins back to Lune 16 6 and that is the largest commercial bank in the country. .entral banking is the responsibility of the +eserve (ank of !ndia, which in 18/3 formally took over these responsibilities from the then !mperial (ank of !ndia, relegating it to commercial banking functions. %fter !ndiaMs independence in 1825, the +eserve (ank was nationali=ed and given broader powers. .urrently, !ndia has 66 scheduled commercial banks B-.(sC $ 25 public sector banks Bthat is with the :overnment of !ndia holding a stakeC, /1 private banks Bthese do not

have government stakeD they may be publicly listed and traded on stock exchangesC and /6 foreign banks. %ccording to a report by !.+% 'imited, a rating agency, the public sector banks hold over 53 percent of total assets of the banking industry, with the private and foreign banks holding 16.2F and 6.3F respectively.

!hat are Retail Ban s>

% retail bank is a bank that works with consumers, otherwise known as Mretail customersM. +etail banks provide basic banking services to the general public, includingN .hecking and savings accounts

.ommercial 0eposits -afe deposit boxes #ortgages %uto loans Ansecured and revolving loans such as credit cards, etc.

"odayIs retail banking sector is characteri=ed by three basic characteristicsN multiple products Bdeposits, credit cards, insurance, investments and securitiesC multiple channels of distribution Bcall centre, branch, !nternet and kioskCD and multiple customer groups Bconsumer, small business, and corporateC.

SC,2AR"$ $- R,0A"1 BA2%"2G "2 "2#"A

"ransition from class banking to mass banking and from sellersI market to buyersI market is drastically changing !ndiaIs banking sector. "oday, retail banking is one of the core business segments in most of the prominent !ndian banks. %s the growth story gets unfolded in !ndia, retail ban ing is going to emerge a major dri6er . +etail banking business has been booming in the country during the last few years. (ut then what has contributed to this retail growth7 ;irst, economic &ros&erity and the conse?uent increase in &urchasing &o5er . 0uring the 1 years after 1882, !ndiaMs economy grew at an average rate of 6.6 percent and continues to grow at the almost the same rate ) not many countries in the world match this performance. -econd, changing consumer demogra&hics indicate vast potential for growth in consumption both >ualitatively and >uantitatively. !ndia is one of the countries having highest proportion B5 FC of the population below /3 years of age Byoung populationC. "hird, technological .actors have played a ma*or role.

;ourth, decline in interest rates have also contributed to the growth of retail credit by generating the demand for such credit.

%t the start of the century, !ndia was *ust one of the many outposts for most global banks. %sia was recovering from a crisis and most multinational banks were reviewing their options. !ndia,s contribution to profits was minuscule. 4ight years later, !ndia is among the top 1 markets for the three top foreign banks in !ndia O .itigroup, Standard Chartered and <-(. O whose global presence ranges from 5 to 1 branches. (anks are now focusing on enhancing their technological capabilities to offer high >uality services to their customers. "he field is very competitive as it demands innovative product range, competitive price, multi$channel distribution, and high >uality products and services. %ccording to the +(!, commercial banksI deposits were at +s / ,53,222 crore on #arch 12, 2 6. "he bank credit is growing at / F per annum and retail credit is expected to

11

grow to +s 353, crore by 2 1 . &resently, total number of banking branches and %"#s in !ndia is about 53, and /3, respectively. % recent study at the ""M 1uc no5 '""M1C about the scope for expansion of banking in !ndia identifies many new opportunities and avenues from both strategic and operational perspectives. 4xpansion of retail ban ing has a lot o. &otential as retail assets are *ust 22F of the total banking assets and contribution of retail loans to :0& stands merely at 6F in !ndia vis$P$vis 13F in .hina and 22F in "hailand. With the +etail banking sector expected to grow at a rate of / F BChanda %ochhar, ,#, "C"C" Ban C players are focusing more and more on the +etail and are waking up to the potential of this sector of banking. -tan.hart, which always had a strong !ndia association, made only G122 million profit in 2 1. ;or the first half of this year, profits from !ndia were at G6 6 million. ;or -tan.hart, !ndia is now the second$largest market after <ong ,ong, contributing 2/F to group profits. !ndian retail banking, according to a report, is likely to grow at a cumulative aggregated growth rateB.%:+C of 26 per cent till 2 1 to +s 85, billion. So, although the re6olution in retail ban ing has changed the .ace o. the "ndian ban ing industry as a 5hole, it has still miles to go@8

A Com&rehensi6e 1ist o. all Retail Ban s in "ndia :

"+ 2ationalised Ban s %llahabad (ank %ndhra (ank (ank of (aroda (ank of !ndia (ank of #aharashtra .anara (ank .entral (ank of !ndia .orporation (ank 0ena (ank !ndian (ank

12

""+ State Ban o. "ndia and Associate Ban s -tate (ank of !ndia -tate (ank of (ikaner and Laipur -tate (ank of <yderabad -tate (ank of !ndore -tate (ank of #ysore -tate (ank of &atiala -tate (ank of -aurashtra -tate (ank of "ravancore

"""+ $ther Public Sector Ban s !0(! and !0(! (ank 'td. have been merged to form "ndustrial #e6elo&ment Ban o. "ndia '"#B"+ 1td. !0(! is notified as a scheduled bank by the +eserve (ank of !ndia B+(!C under the +eserve (ank of !ndia %ct, 18/2. +(! has categori=ed !0(! under a new sub group Hother public sector bankH. "9+ $ld Pri6ate Sector Ban s (ank of +a*asthan 'td. .atholic -yrian (ank 'td. .ity Anion (ank 'td. 0hanalakshmi (ank 'td. ;ederal (ank 'td !Q: ?ysya (ank 'td. Lammu and ,ashmir (ank 'td. ,arnataka (ank 'td. ,arur ?ysya (ank 'td. 'akshmi ?ilas (ank 'td. Qainital (ank 'td. +atnakar (ank 'td. 1/

-(! .ommercial and !nternational (ank 'td. -outh !ndian (ank 'td. "amilnad #ercantile (ank 'td. Anited Western (ank 'td.

9+ 2e5 Pri6ate Sector Ban s (ank of &un*ab 'td. Bsince merged with .enturian (ankC .enturian (ank of &un*ab Bsince merged with <0;. (ankC 0evelopment .redit (ank 'td. <0;. (ank 'td. !.!.! (ank 'td. !ndus!nd (ank 'td. ,otak #ahindra (ank 'td. %xis (ank Bearlier A"! (ankC Yes (ank 'td.

9"+ -oreign Ban s in "ndia %(Q$%#+9 (ank Q.?. %bu 0habi .ommercial (ank 'td. %merican 4xpress (ank 'td (arclays (ank &'. (Q& &aribas .itibank Q.%. 0(- (ank 'td 0eutsche (ank %: <-(. 'td. -tandard .hartered (ank -tate (ank of #auritius 'td. 12

Research Methodology
All progress is born of inquir ! Doubt is often better than overconfi"ence# for it lea"s to invention! %bove maxim by <udson indicates to the significance of research. +esearch inculcates scientific R inductive thinking and it promotes the development of logical habits of thinking and organi=ation. "he research methodology explains that researcher has gone through which path to solve the research problem and which tools have been adopted to achieve the desired ob*ectives and more importantly it tells why only that path or tools have been chosen not other. Qo economy of the world can suffice and operate without the due support of the ban ing sector. (anks provide the foundation and the platform on which the industrial and the service sector grow and prosper. "hey provide the support necessary for the smooth functioning of the economy as a whole. "he recent sub$ prime crisis is a testimony to the fact that irregularities in the banking sector can actually lead to the downfall of any economy, be it the A.-. Retail Ban s in particular cater to the daily operational needs of their individual customers. %s the world economy as a whole is progressing, theses retail banks have become more sensitive to the needs of their clientele. "he banks are becoming more and more customi=ed in their approach. ,anpur, as we know is presently the industrial metropolis of Attar &radesh. !t is the biggest city of A& and is the eight biggest in !ndia. (eing a ma*or centre of

13

industrial activity, ,anpur is one of the most appropriate places to conduct any research related to the (anking -ector.

$bjecti6es o. Research
"he research that has been undertaken has been segmented into two partsN "he first part deals with Retail Ban s in %an&ur. "he ob*ectives sought to be achieved under this are as followsN o Andertake a comparative analysis of the Qationali=ed (anks vis$P$vis the &rivate (anks. o "o find out the most K&referred (anksI in the city. o "o investigate the opinion that people hold about their (anking 4xperience. o %n empirical study of the branch banking operations of -tandard .hartered (ank, ,anpur. "he second part deals with a specific product of -tandard .hartered, eSsa6er. "he aim here is to analyse the awareness of the product in the business community in ,anpur and generate positive leads for sales conversion.

0he Study
"his research is descri&ti6e and conclusi6e in nature because it aims to collect the data about the attitude Bpreference, familiarity, knowledge, etc.C of respondents Bi.e. customers availing banking servicesC towards various retail banks in ,anpur, which is behavioral variable of the sample under the study. "he research approach used is survey based and the analysis is largely based on the primary data. <owever, use of secondary data has also been made in the form of facts available with the 'ead (ank.

16

Sam&le Si/e
"he sample si=e for the study was kept at 1 . 'arge sample si=e is sub*ected to many complications and wastage of time R money. "his sample si=e was fair enough to achieve reliable results for the study undertaken.

Sam&ling Procedure
!t describes the method as to how the respondents should be chosen. !n this study we have adopted the route of ran"o$ sa$pling because the study did not re>uire any special group of customers as the respondents.

0ools used .or data collection

"he research has been carried out through a combination of two methods, making use of both primary and secondary data. "he methods adopted have been described as underN

Secondary #ata
-econdary research describes information gathered through literature, publications, and other non$human sources. -econdary data is in general easier to gather than primary data. "he prime source of information under this head was the 1ead Ban o. %an&ur, Ban o. Baroda8 !t provided excellent material which augmented the primary research undertaken for the study. -urfing the "nternet proved to be very useful. !t provided a wealth of high >uality theoretical articles, research tools undertaken by different students in the same field and specific information about the industry. Ase of some 0e;t Boo s was also made. 2e5s&a&ers presented the true picture of +etail (anking -cenario in !ndia. "hey provided important information of the current situation and views of experts related to the industry.

Primary #ata
!t is the information which is collected by the researcher himself. !t is specific to the problem under hand. "his research was carried out through sur6ey method with the help of a ?uestionnaire consisting of ) closed ended and o&en ended ?uestions seeking the respondentsI opinion and suggestions. 0ue to flexibility, >uestionnaire method is ideally suited for collection of primary data. "he >uestionnaire was formulated in 4nglish to make the response easy and to avoid any confusion. @uestionnaires were administered

15

with the help of structured personal interviews to get the respondentIs opinion and suggestion Bif anyC about the topic.

#ata Analysis
Anless the data collected is analysed and studied properly, the entire effort of undertaking the research would prove to be a futile exercise. "hus, to reach at a concrete conclusion a vital element of a successful research is 0ata %nalysis. !n the study under hand an effort has been made to analyse the data collected both >uantitatively and >ualitatively.

Retail Ban ing Scenario in %an&ur

"he biggest city of Attar &radesh and eight biggest in !ndia, ,anpur is the most important metropolis of the -tate. ;rom the point of view of industrial potentialities, it is the fourth. 9ther functions and service centres have also prospered side by side. "he industries of ,anpur are variedD textile industries, woollen, *ute and leather industries predominate. "his is mainly due to its central location in the -tate. "he urban industrial structure of ,anpur with its developing complexities has exhibited a tremendous growth since 18 1. !n this city, in spite of a low percentage of irrigated area, the density is high and that is obviously due to great industrial concentration. -uch a developing industrial scenario demands a well$established banking structure. "his is a well$known fact that a sound financial market is a pre$re>uisite for a progressing industrial market. ,anpur has an advanced banking structure. "here are a sufficient number of Qationali=ed, &rivate and .ooperative (anks to meet the needs of the deni=ens. "he geographical distribution of some important banks in the city has been indicated on the following page. "he map clearly indicates that the ma*or centres of banking operations are &hool (agh, #all +oad and #.:. +oad. "his, however, does not mean that the other areas of the city are devoid of any branches. "he branches of different banks are spread well over the entire city so as to assure easy approach to the banks for the people.

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Ma& sho5ing Geogra&hical #istribution o. Ban s in %an&ur

18

Results and -indings o. the Secondary #ata collected

4very city has a 'ead (ank. "his bank is responsible for the overall development of the banking structure in the city. "his bank collects the information relating to the 0eposits and %dvances of all the other (anks. Qo bank other than the 'ead (ank can provide this information. "he 'ead (ank in ,anpur is (ank of (aroda. "he following data has been collected from the 'ead (ank.

Ban s ha6ing Branches in both Rural and Metro Areas 2umber o. #e&osits 'in Ad6ances 'in 2ame o. Ban Branches Crores+ Crores+ S82o8 Metro Rural Metro Rural Metro Rural 121.2 868./ 1 (ank of (aroda / 1/ 1212.16 6 3 82.2 165./ 2 -tate (ank of !ndia 51 11 /86 6 2/61 6/.66 866.5 / &un*ab Qational (ank 22 3 2 35.36 53.22 1 15./8 1 2.3 / 3.6 2 .entral (ank of !ndia // 6 812.26 6 / /2.63 325.1 3 %llahabad (ank 2 1 112/.2/ 12.65 1 /5.56 6 (ank of !ndia 5 A.o (ank 1/ 1 5 / 1 23 1 21 //1.63 125.66 68.6 5.36 222.5 2 368 28. 6 21.11 1.23

6 ( A & :ramin (ank

21.1 186.2/

S8 2o8

2ationalised Ban s ha6ing Branches only in Metro 2umber #e&osits Ad6ances 2ame o. Ban o. 'in 'in Branches Crores+ Crores+ 2 8 6 2 2 11 6./1 186 2/3.86 162.22 261. 2 /23.82 26 52.81 62.85 36.11

1 Anion (ank of !ndia 2 &un*ab and -indh (ank / -tate (ank of (ikaner and Laipur 2 -tate (ank of &atiyala 3 -tate (ank of !ndore

-tate bank of <yderabad 5 -tate (ank of "ravankore 6 8 1 11 12 Anited (ank of !ndia .anara (ank -yndicate (ank !ndian 9verseas (ank

1 1 3 3 5 3 / 3 2 2 2 2 /

//.6 /1.62 163.22 252.86 2 5.// 133.31 8/./3 2/1.86 62. 2 65.2 38.13 26.86 82.12

25.22 6.6 82. 8 /28.61 1/2.61 63.66 2 .18 163.66 13.5/ 11.66 63./ 3.56 13.52

.orporation (ank 1/ 9rienatal (ank of .ommerce 12 %ndhra (ank 13 16 15 16 (ank of #aharashtra 0ena (ank !ndian (ank ?i*aya (ank

$ther Public Sector Ban s S8 2o8 2ame o. Ban 2umber #e&osits Ad6ances o. 'in 'in Branches Crores Crores+ 2 $ld Pri6ate Sector Ban s S8 2o8 2ame o. Ban 2umber #e&osits Ad6ances $. 'in 'in Branches Crores+ Crores+ 1 1 1 /5./ 13.36 /6.5/ 22./6 2./6 5. 6 21 16 .68 2/.32

1 !0(! (ank

Lammu and ,asmir 1 (ank 2 (ank of +a*asthan / Qanital (ank 'td.

2 !Q: ?saya (ank 'td. 3 ,arnatka (ank 'td.

1 1

6 15.28 2.61

Coo&erati6e Ban s S8 2o8 2ame o. Ban 2umber #e&osits Ad6ances o. 'in 'in Branches Crores+ Crores+ 5 5 12 1 383. 5 2/.25 1/ 8.15 135.3 25. 3 5 .23

1 A& .ooperative (ank 2 (rahmavant .ooperative (ank / Anited #ercantile .ooperative (ank 2 !ndian #ercatile .ooperative (ank

S8 2o8

2e5 Pri6ate Sector Ban s 2umber #e&osits Ad6ances 2ame o. Ban o. 'in 'in Branches Crores+ Crores+ / 6 1 1 /13 /// 163.52 63.62 213 628 25.13 5.1/

1 <0;. (ank 2 !.!.! (ank / %xis (ank 2 !ndus!nd (ank 3 ,otak #ahindra (ank 'td. -oreign Ban s S8 2o8 2ame o. Ban

55.2

2umber #e&osits Ad6ances o. 'in 'in Branches Crores Crores+ 1 /3 1

1 -tandard .hartered (ank

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Analysis o. the Secondary #ata

When the above data was aggregated it was seen that 6 F of the #e&osits in %an&ur are in the hands of 11 banks shown in the graph. "hese 11 banks constitute 2 F of the banks present in ,anpur. "hus these banks have been selected by applying the Pareto &rinci&le of 6 N2 .

#e&osits in Ban s
23 2 /3
2165./6

Amount 'in Crores+

/ 23 2 13 1 3
/3 2/1.86 35 .6 383. 5 111 .6 1136.1 1 12.6211 6./1 1//3.62 21//. 2

-indings: "he, above graph clearly indicates that not even one private bank has been able to make it to the top 11 banks in terms of deposits. "he list contains 1 nationalised banks and 1 cooperative bank.

-t an d rie ard na .h ta l ( art an ere d k ( of ( .o ank A m & m : A e r & a m rc e .o i n o (a .e per nk a nt ra tive l( (a an A nk ni k of on !n (a nk dia o (a f ! n di nk a o % lla f !n ha di a b (a ad ( n &u n* k of ank ab (a Q r a tio oda -t na ate (a l ( a nk n of k !n di a

2ame o. Ban

2/

-imilarly, as per the &areto principle, 6 F of the Ad6ances in the city are made by 1 i.e. 2 F of the banks. "he following graph illustrates thisN

Ad6ances made by Ban s

/

23

2222.66

Amount 'in Crores+

13

866.1 61 .11 628

1 6/.53

362.65
3

/23.82 //6.26 /28.61

213

-indings: !n terms of advances, the top / positions have again been bagged by nationali=ed banks. 2 private banks have made it to the list.

A ni on (a .e nk nt of ra !n l( di an a k of !n di .a a na ra (a nk < 0 ;. % (a lla nk ha ba d (a (a nk nk of !n di !. a &u ! n* .! ab (a Q nk at io na l( (a an nk k of -t (a ate ro (a da nk of !n di a

2ame o. Ban

22

Qext we compare banks in terms of the number o. branches they have in the city. "his would help us in analy/ing the reach a specific bank has in the city. We continue with the same &areto &rincipleN

Geogra&hical reach o. Ban s 8 6 2umber o. Branches 5 6 3 2 / 2 1

A .o .o ( op er ank at iv e (a (a A nk nk ni of on !n (a nk dia of % lla !n .e ha di nt a b ad ra l( (a an nk k o ( f! nd &u ank ia of n* ab (a Q ro at da ( i o A na & l( : an r a -t ate min k (a (a nk nk of !n di a
11 12 16 2 21 /8 2/ 25 32

62

A ni ted

# er

ca n

til e

2ame o. Ban

-indings: %n analysis of the graph clearly indicates that the nationali=ed banks have a greater number of branches in the city compared with any of the private banks. (ut the >uestion that arises is that does a greater number of branches alone prove greater profitability of the banks. Qo, it surely does not. We need to analyse the average deposits and advances per branch. "he following 2 graphs help in this regard.

23

A6erage #e&osits &er Branch

2 . /3 .

/3 .

Amount 'in Crores+

23 . 2 . 12 .31 55.2 63.62 68.21 63. 1 66./8 8 .23 1 3. 163.52

13 . 1 . 3 . .

-indings: "he above graph clearly indicates that though the private banks do not have a wide geographical reach, the a6erage de&osits &er branch is certainly greater than the nationali=ed banks. "he private banks are capitali=ing on this parameter to gain an edge over the nationali=ed banks.

!n du s!n d , (a ot (a ak nk nk # o ah f! in nd dr ia A a & ( 9 a . nk rie oo na 't pe ta d. ra l( tiv an e( k an of k .o m m er ce !0 (! ( an < k 0 -t ;. ate ( (a an nk k of !n -t do an re % da xi rd s( .h an ar k te re d ( an k

2ame o. Ban

26

Qext we compare the Ad6ances made by ban s &er branch. "he banks have been selected on the same &areto principle. "he graph below indicates the top 1 banks in ,anpur on this parameterN

A6e rage Ad6ance s &e r Branch

16
1/6.//

A6erage amount o. Ad6ances 'in Crores+

12

12
1 2.6/

68.82

6
/6.1/ 22./6 22.63

2
25.63

26. 6

/5.15 28.62

-indings: "he advances made by a branch are independent of the total funds available in the branch. %s can easily be analysed in the case of !.!.! the total lending is *ust double of the deposits held by the bank. "he credit offered by a bank depends on the comfort of the top brass managers towards that particular city.

of -t 9 at ri !n en e do ( at re a al nk ( of an !n k of di a . om m La er ( m a ce m nk u of an !n d di , as a m ir ( an 0 k en a ( an . k an ar a ( an !. k !. !( an < k 0 ;. ( an k
2ame o. Ban

lla ha b %

-t at e

( an k

ad

( an k

25

;urther, we can also see that in the list the top 2 positions have been occupied by private banks. "his might lead us to believe that the ma*or lendings in the city are made by private banks. (ut this is not the case. % closer look at the figures would indicate that beyond the top 2 positions the rest of the places are occupied by the nationali=ed banks. "hus, the ma*or chunk of credit in the city is still offered by the nationali=ed banks.

26

Analysis and -indings .or the Primary #ata

1. :raph no. 1 indicates which are the AB,S0 BA2%S< in %an&ur as per the customers.

Best Ban s in %an&ur

/ .

25.66

23.
21.2/

2 .
16.86

Percentage o. 13. Peo&le

11.61 1 .51 6.8/

1 . 3.

2.66

. -(! -.( <0;. %S!!.!.! &Q( 9thers

2ame o. Ban

-indings: "he above graph clearly indicates that the highest preference is en*oyed by -tate (ank of !ndia. <owever, as shown in the graph the preferences are not sidelined either for private or nationali=ed banks. (oth en*oy some preference by some class of customers.

28

2. :raph no. 2 talks about the reasons that customers hold for operating with their preferred banks.

Reasons .or $&erating 5ith the Pre.erred Ban s

/ . 23. 23.

26.6

&ercenatge of &eople

2 . 13. 11.15 1 .

18.13

8.35 6./6

3. .

2.1/

il l

ua lit y

of &r od uc ts

en ce nv en i .o

ag e

J. ha rg es

oo dw

in t

vi ce

-e r

ke t

Reasons

-indings: Anlike the widely thought notion only 8.35F consider or pay attention to tari..s B charges. ;or 26.6F of the people loacational con6enience i.e. geographical reach of the banks is important. !n the age of customi=ation 23F of the people consider the ser6ice ?uality as a prime factor when selecting a bank. #oreover, the goodwill of the bank i.e. its past record plays a ma*or role.

'o ca tio na l

(a s

"a r

iff s

th er s

/. :raph no. / shows the &roblems that customers .ace while operating with their preferred banks.

Problems -aced by Customers

23. 2 . 13. 1 . 3. . 22.62 22.62 16.65

Percenatge o. Peo&le

12.26 5.33

12.26

/.55

en ta tio n

tt e nt io n

e' ag

ati on

po ns e

rm

"i m

ce ss

so na

.u m be rs

&r o

;l ow

om e

&e r

-indings: 22.62F of the respondents complained that they did not get &ersonal attention at their banks. "hey said that they were given a lot of preference when first contacted. <owever, subse>uent dealings were followed by ignorance. #any of them also said that there were no customi=ed products. ;urther, 22.62F also said that the &rocessing time lag was a problem for them. %ccording to them steps need to be taken to improve the services offered by the banks. #ost of them were satisfied with the in.ormation .lo58 "here were 16.65F of the people who did not face any problems while dealing with their banks.

of !n fo

oc um

in g

l%

Problems

+e s

th er s

on e

/1

2. :raph no. 2 shows how customers rate their current ban ing e;&erience , 1BlowestC ) 3 BhighestC.

Rating gi6en by Res&ondents

1 F

2F

11F

1 2 /
/6F 21F

2 3

-indings: %s indicated by the chart only 2F of the people think that the banking services are poor and are dissatisfied with them. %bout 21F of the people are neither satisfied nor dissatisfied. %bout 1 F of the respondents are highly satisfied. "he fact that only 2F of the respondents are dissatisfied is exemplary of the efforts that are being extended to improve the banking services. <owever, the wide area of 21F is also indicative of the fact that there is still scope for improvement.

/2

3. "he following graphs highlight the preferences of respondents for different banks with respect to different products. i8 "his graph shows the preferences of customers regarding -i;ed #e&osit8

Pre.erences .or -i;ed #e&osit

/ .
25.56

23.

Percentage o. Peo&le

2 .

13.

12.61 12. 2 1 .18

11.11 6.// 8.26

1 .
6.26

3.

<0;.

-(!

!.!.!

(ank of (aroda 2ame o. Ban

-.(

&Q(

%xis (ank

9thers

-indings: "he graph shows that in case of ;ixed 0eposits a greater preference is placed upon Qationali=ed (anks as compared with &rivate (anks. 25.56F of the people prefer to invest in a fixed deposit with -(!. "he next highest preference is again followed by a nationali=ed bank, (ank of (aroda.

//

ii8

<ere the preference of the customers for different banks with respect to the Sa6ings #e&osit has been indicated.

Pre.erence .or Sa6ings #e&osit

/ .

23.

22. 2

Percenatge o. Peo&le

2 .

13.

12.22 1 .36

12.22

1 .

8.62

8.62 5.68

8.62

3.

&Q(

<0;.

-(!

!.!.!

(ank of (aroda

-.(

%xis (ank

9thers

2ame o. Ban

-indings: "he findings that apply for ;ixed 0eposit hold god for -avings 0eposit as well i.e. the respondents prefer Qationali=ed (anks over &rivate (anks in this case as well.

/2

iii8

"his graph tells us about the preferences of customers with respect to Current Account8

Pre.erence .or Current Account

23.

2 .

18.22

Percentage o. Peo&le

13.

12.36 12.62

12.36 11.63

1 .66 1 . 6.52 5.55

3.

<0;.

-.(

!.!.!

(ank of (aroda

-(!

%xis (ank

&Q(

9thers

2ame o. Ban

-indings: "he graph clearly shows that the respondents give a greater preference to &rivate (anks when it comes to .urrent %ccounts. 18.22F of the customers prefer -.( followed by <0;.. % greater preference for &rivate (anks might be *ustified on the on account of a better service provided in case of .urrent %ccounts. !ndustrialists and businessmen re>uire efficient current accounts for their day to day transactions. "hey, therefore, demand a high service standard.

/3

i68

"he following graph highlights the preferences op people in the field of "nsurance8

Pre.erence .or "nsurance

16. 16. 12. 1/.38 1/.38 11.63 1 .66 6.52 5.55 13.3/ 12.36

Percentage o. Peo&le

12. 1 . 6. 6. 2. 2. .

/.66

!.!.!

,otak

-.(

'!.

<0;. (ank of (aroda

-(!

%xis (ank

9thers

2ame o. Ban

-indings: %gain we can see that the government agencies en*oy a higher preference when it comes to insurance. %s seen the highest priority is en*oyed by 1"C .ollo5ed by SB". <owever, beyond this the private banks have are preferred.

/6

68

"his graph highlights the preferences of respondents for handling their "n6estments8

Pre.erence .or "n6estments

2 . 16.26 16. 16.1/ 16. 12. 13. 3 13. 3 16.26

Percenatge o. Peo&le

12. 1 . 6. 6. 2. 2.13 2. .

6.6 6.23

-.(

!.!.!

<0;.

,otak

-(!

(ank of (aroda

%xis (ank

9thers

2ame o. Ban

-indings: "he graph is a clear indicator of the fact that the respondents have a much greater degree of reliability on &rivate (anks for handling their !nvestments. %s indicated by the graph each of the 16.26F of the respondents give a higher preference to SCB and C#-C. "his reiterates the fact that when it comes to making important decisions people rely more on &rivate (anks than Qationali=ed (anks.

/5

Suggestions .or im&ro6ements in the 5or ing o. Ban s

"he staff who first deals with the customer should only deal with him for any subse>uent transactions. #ore diversified products re>uired which cater to the needs of different segments. 9nline processing procedures should be adopted. -taff needs to be more informed. #ore personal attention re>uired. "imely clearance of drafts and che>ues. While securing clients a lot of attention is paid but while providing services no attention is paid. 0ocumentation should be reduced and personal assessment of clientIs financial position should be done as was prior to Qationali=ation of (anks. 'ess paperwork for people with less knowledge. .ustomer care centres should be localised. .ities like ,anpur should have call centres for prompt reply and action. !nformation counter in every bank.

/6

A Brie. history o. Standard Chartered

-tandard .hartered is the worldMs leading emerging markets bank head>uartered in 'ondon. !ts businesses however, have always been overwhelmingly international.

Message .rom Peter Sands, 0he C,$

The bank is in great shape we are well positioned in growing markets. %ur strateg , as expressed in our &ea"ing the 'a statement, remains unchanged except for the recognition that we must continuously improve the way we work.

0he ,arly years

-tandard .hartered is named after two banks, which merged in 1868. "hey were originally known as the -tandard (ank of (ritish -outh %frica and the .hartered (ank of !ndia, %ustralia and .hina. 9f the two banks, the .hartered (ank is the older having been founded in 163/ following the grant of a +oyal .harter from @ueen ?ictoria. Qine years later, in 1662, the -tandard (ank was founded by a group of businessmen. "he .hartered (ank opened its first branches in 1636 in .alcutta and #umbai. % branch opened in -hanghai that summer. "he following year the .hartered (ank opened a branch in <ong ,ong. !n 1662 the .hartered (ank was authori=ed to issue bank notes in <ong ,ong. -ubse>uently it was also authori=ed to issue bank notes in -ingapore. 9ver the following decades both the -tandard (ank and the .hartered (ank printed bank notes in a variety of countries. "oday -tandard .hartered is still one of the three banks, which prints <ong ,ongMs bank notes.

,;&ansion in A.rica and Asia

"he -tandard (ank opened for business in &ort 4li=abeth, -outh %frica, in 166/. !t pursued a policy of expansion and soon amalgamated with several other banks. !n 1682 the -tandard (ank opened for business in Timbabwe, and expanded into #o=ambi>ue in 1682, (otswana in 1685, #alawi in 18 1, Tambia in 18 6, ,enya, Tan=ibar and the 0emocratic +epublic of .ongo B0.+...C, in 1811 and Aganda in 1812. !n %sia the .hartered (ank expanded opening offices in, #yanmar in 1662, what is now &akistan and !ndonesia in 166/, the &hilippines in 1652, #alaysia in 1653, Lapan in 166 and "hailand in 1682. -ome /2 years after the .hartered (ank appointed an agent in -ri 'anka it opened a branch in 1682 to take advantage of business from the tea and rubber industries. 0uring 18 2 a branch opened in ?ietnam. (oth the .hartered and the -tandard (ank opened offices in Qew York and <amburg in the early 18 s.

/8

Standard Chartered in the *DD(s

4ven within this period of apparent retrenchment -tandard .hartered expanded its network. -tandard .hartered now has an office in every country in the %sia &acific +egion with the exception of Qorth ,orea. !n 1888, -tandard .hartered ac>uired the global trade finance business of Anion (ank of -wit=erland. "his ac>uisition made -tandard .hartered one of the leading clearers of dollar payments in the A-%. -tandard .hartered also opened a new subsidiary, -tandard .hartered Qigeria 'imited in 'agos, ac>uired 53 per cent of the e>uity of Qakornthon (ank, "hailandD and agreed terms to ac>uire 68 per cent of the share capital of #etropolitan (ank of the 'ebanon.

Standard Chartered 0oday

"oday -tandard .hartered is the worldMs leading emerging markets bank employing / , people in over 3 offices in more than 3 countries primarily in countries in the %sia &acific +egion, -outh %sia, the #iddle 4ast, %frica and the %mericas. "he new millennium has brought with it two of the largest ac>uisitions in the history of the bank with the purchase of :rindlays (ank from the %QT :roup and the ac>uisition of the .hase .onsumer (anking operations in <ong ,ong in 2 . "hese ac>uisitions demonstrate -tandard .harteredIs firm commitment to the emerging markets.

Management Agenda till 2(**

-uperior financial performance #assively multiply our leadership capability .ontinuously improve the way we work +einforce the brand -trengthen our right partner relationships with regulators and communities

S0RA0,G",S $- S0A2#AR# CCAR0,R,# BA2% "he strategies are composed of 2 elementsN 1C :o for growth 2C :et Kfit to growI /C (uilding value leadership 2C -trengthen the culture

SCB $RGA2"EA0"$2 S0R=C0=R,

.hairman
!nternal %udit

:roup .49

:40 :overnance

:40 :overnance

:40 .onsumer (anking

:40 Wholesale (anking

:roup ;inance 0irector

0irector &eople &roperty %ssurance

1C %frica 2C #4& /C 4urope 2C %merica

1C %sia

1C -trategy 1C <uman 2C ;inance +esource /C +isk R :-%# 2C .orporate 2C "echnology R +4 9perations /C 'egal R 3C .orporate .ompliance "reasury 2C 9+ 3C .ompany -ecretary

:eographic :overnance :lobal (usiness ;unctional

21

SCB B=S"2,SS
-tandard .hartered (ank

!holesale Ban

Consumer Ban

Su&&ort Ser6ices

"0 F Ser6ice #eli6ery

.ustomer +elationships ..+. :lobal #arkets %sset #anagement

..&' #ortgages -hared 0istribution Wealth #anagement

;inance <+ 'egal R .ompliance -- R .+44xternal -ervices %udit !nvestigation -pecial +ecovery "eam

.onsumer (anking .+. .ustodial -ervices !" !nformation -ystems

-#4 Qational -ales

22

SCB $rgani/ation Structure, %an&ur

#esh6ir Ahlu5alia +<(( $ Qorth

0a&as Maitra (ranch #anager

Sanjay Singh #.+

9i as Shah "-#

Raji6 Agnihotri "-#

Ashish Sinha +#

9inay Rai +#
#im&i :hurani +#

,eshari 9*ha .4# ?ikas 0iwedi &;# (harat -hukla &;# 0eepika Qarang &;# +achit -rivastava &;# -angeeta #ukher*ee &;#

#ahesh (hadauria .-4 &rabhat -inha .-4 &u*a -axena .-4 &ranab :upta .-4 &rachi ,apoor 0mat

,aushal -rivastava .-4 %parna (halla .-4 #anisha "akru .-4 0eepak -achan .-4 -hweta -ingh .-4 J '-0

#.+ ) #anager .ustomer +elations "-# ) "eller -ervice #anager +# ) +elationship #anager .4# ) .ustomer 4xperience #anager &;# ) &ersonal ;inancial #anager .-4 ) .ustomer -ervice 4xecutive

2/

Branch ban ing o&erations o. SCB

"+ #aily Cash 4 Related Acti6ities "he .ustomer -ervice 4xecutives 'CS,s+ are responsible for these activities of the branch. "hey are also known as A0,11,RS<. %t the #.:. +oad branch, ,anpur there are 6 tellers. "hey perform the functions of cash deposits, cash withdrawals, account closures, issuing pay orders, giving demand drafts, etc. %ny transfer of funds is also processed through them. "hey also take care of Q4;" and +":-. "hese instruments and their processing is explained herewith N '*+ #emand #ra.t 'Ban #ra.t+ &ayment instrument issued by a (ank at the re>uest of a customer. !nstruction to another branch of -.( at a different city or of a correspondent (ank to make payment to the beneficiary when the draft is presented for payment. &urchaser deposits amount with the issuing bank for purchasing the draft. :uaranteed payment J not dishonoured as stop payment instructions are not accepted.

'2+ Pay $rder 'Ban er<s Che?ue+ &ayment instrument issued by a bank. &resented for payment to the issuing bank branch itself. !ssued by banks to make payments to its vendors, settlement with other banks. %lso issued at the re>uest of customers when the beneficiary and the purchaser are in the same city. :uaranteed payment, unlike customerIs che>ue.

'G+ 2,-0 '2ational ,lectronic -unds 0rans.er+ 2,-0 is an online system for transferring funds of financial institution, especially for the banks in !ndia. "his service is used mainly to transfer funds below +s 1 . +(! has asked banks to offer Qational 4lectronic ;und "ransfer BQ4;"C which provided "U and "U1 settlement system depending on the time a customer gives instruction to the bank for transferring the fund for small transactions. 22

'H+ Real 0ime Gross Settlement 'R0GS+ +":- system is a funds transfer mechanism where transfer of money takes place from one bank to another on a Vreal timeW and on VgrossW basis. "his is the .astest &ossible money trans.er system through the ban ing channel8 -ettlement in Vreal timeW means payment transaction is not sub*ected to any waiting period. "he transactions are settled as soon as they are processed. V:ross settlementW means the transaction is settled on one to one basis without bunching with any other transaction. 'I+ Collection o. Che?ues %ny customer who wishes to deposit a che>ue in the bank would approach the "eller counter. %s a pre$re>uisite he is first re>uired to fill in a deposit slip available in the bank. "he deposit slip is filled in duplicate. "he customer deposits the original copy at the counter while keeps the carbon copy with him. "he slip contains information regarding the %ccount Qumber, the %mount Bboth in figures and in wordsC and the date. 0y&es o. Che?ues: 'a+ $&en Che?ue % che>ue is called an open che>ue when it is possible to get cash over the counter at the bank 'b+ Crossed Che?ue -ince open che>ue is sub*ect to risk of theft, it is dangerous to issue such che>ues. "he risk can be avoided by issuing another type of che>ues called K.rossed che>ueI. "he payment of such che>ues is not made over the counter at the bank. !t is only credited to the bank account of the payee.

23

% che>ue can be crossed by drawing two transverse parallel lines across the che>ue, with or without the writing K%ccount &ayeeI or KQot QegotiableI.

'c+ Bearer Che?ue % che>ue which is payable to any person who presents it for payment to the bank counter. % bearer che>ue can be transferred by mere delivery and re>uires no endorsement. 'd+ $rder Che?ue %n order che>ue is payable to a particular person. !n such a che>ue the word KbearerI may be cut out or cancelled and the word KorderI may be written. "he .-4s at the -.( branch, ,anpur are given a target o. *I( transactions a month. !n addition to this they are also re>uired to give G( re.errals to the &;#s B&ersonal ;inancial #anagersC. +eferrals in simple terms means, K.allsI. !f these calls are converted into business they are given incentives for the same. %fter having collected the che>ues, the .-4s send them to another department known as "PC '"nternal Process Control+8 "his department takes care of the process of clearance of che>ues. "his process has been explained belowN

26

Process o. Clearing o. Che?ues

(anks are under an obligation to collect che>ues deposited by their customers. "he process of this collection is called Clearing o. che?ues8 .learing involves sending che>ues, drafts, pay orders etc. to the bank on which it is drawn through a .'4%+!Q: <9A-4 and obtaining payment against these. "he +eserve (ank of !ndia acts as the .learing <ouse in !ndia. "he .learing <ouse acts a medium between the 0rawee (ank and the &resenting (ank %t the .learing house $ controlled by +(! or -(! ) all banks present che>ues deposited by their customers, which are drawn on local branches of other banks "he clearing house maintains pigeon$like compartments for all banks in an electronic form. "his is shown diagramatically belowN

%S!!.!.!

+(! B.learing <ouseC

-.( (9(

&Q(

%(Q

-(!

<0;.

Y4-

<-(.

%ll the banks assemble in the afternoon at the .learing <ouse with the che>ues deposited in their banks that day

25

"hese are then separated bank wise and encoded onto a floppy which is handed over to the respective bank next morning "he che>ues are then debited to the respective account of the drawers !n case a che>ue is not cleared for any reason, it is returned to the presenting bank the very next day. "hese are also routed through the .learing <ouse. "he same has been showed digramatically belowN :$=R2,J $- A CC,K=,

#onday 1 N/ am

.ustomer 0eposits .he>ue

.ustomer %ccount 0ebited J +eturned

(ranchJ%"# .he>ue .ollection (ox

.ut 9ff 11N/ am -chedule U .he>ue

0rawee (ranch +eturn #ain (ranch of 0rawee

.'4%+!Q: <9A-4 +eader J -orter "allying J #atching

!&.
.ustomer 4ncoding (atching 'isting

#onday 6N pm

"uesday 6N/ am

Wednesday 6N/ am

"uesday 3N / pm

26

0y&es o. Clearing

.learing #echanism

#!.+ .learing

Qon #!.+ .learing

<igh ?alue .learing B<?C

!nter (ank .learing

4lectronic .learing

'ocal .learing

9ut -tation .learing

-peed .learing

4xpress .learing

Apcountry .learing

28

'*+ M"CR Clearing #!.+ che>ues are the special che>ues issued by banks located at centres where the local clearing of che>ues is done mechanically using document processing machines called reader-sorters8 "he white band at the bottom of these che>ues contains all the vital information about the che>ue. "his vital information is printed in #agnetic !nk .haracters which can be recogni=ed by the readerJsorter machine. "he pre$printed information is the che>ue number, the city$bank$branch code, the type of accountJinstrument and the account number. "he che>ue amount is encoded by the payeeIs bank when it presents the che>ue in clearing. i8 1ocal Clearing 'through RB"+ B M"CR Clearing '"+ ii8 "his is a mechani=ed clearing system introduced by +(!. !f the instrument is drawn on a bank in #umbai and is deposited in a bank in #umbai Bi.e. the same cityC, it is sent through local clearing. !t takes t5o 5or ing days for the funds to be available for withdrawal.

2ational Clearing 'through RB"+ B M"CR Clearing '""+ !f an instrument is drawn on a bank in #umbai and is to be paid by a bank in 0elhi Bi.e. another metro cityC, it is sent through Qational .learing. !t normally takes a 5ee <s time for the clearance of such instruments.

"o slash clearance time taken for Qational .learing, -.( has introduced -peed .learing for its customers.

'2+ 2on-M"CR Clearing 'Manual Syatem+ "his is a manual system followed in non$metro cities. "he instruments are cleared in t5o 5or ing days and amounts are manually posted into the customerIs account. %ll return clearings$ Bi.e. clearing for all instruments retuned unpaid by the drawee bankC$even at the metro cities follow the same process as the Qon$#!.+ .learing.

'G+ Cigh 9alue Clearing 'C9C+ through RB" <?. takes *ust one working day for clearance. "his means that the customer can withdraw the funds the next working day. % che>ue can be sent for <?. provided the che>ue is drawn on a bank branch within pincode area 1 and is deposited before the high value cut$off time at the bank in the same area. "he che>ue should be for +s. 1 lakh or more. %pproximately 3km. %t -.( the high value cut$off time is 11N am.

"here is no high value clearing on -aturdays

'H+ "nter-Ban Clearing !t is a local clearing for settlement of inter bank transactions through instruments issued by banks on themselves, favouring other banks. , in favour of %S!- bank as an inter$bank

4g. !.!.! makes a pay$order for +s. 1 , settlement. 'I+ ,lectronic Clearing System ',CS+

4.- is used for making bulky payments or bulk collection on behalf of a company or government institution.

31

4.-, despite its name is completely manual. !t takes place through +(!

4g. +eliance pays dividend to all its shareholders by sending a list of all account numbers to +(! which in turn sends these to the respective banks to credit the customerIs account.

""+ -acility o. Sa.e #e&osit 1oc ers -afe 0eposit 'ocker facility is one of the subsidiary services provided by the (ank to its customers for keeping their valuables in the safe deposit locker. (ank provides specially designed lockers kept at specially built strong rooms. "he relationshi& bet5een the Ban er and Customer is that o. lessor and lessee8 <owever, this facility is not offered through all (ank branches. !n -tandard .hartered (ank, ,anpur, #r. ,aushal , -rivastava B.hief .ashierC and #r. ?ikas -hah B"-# ) "eller -ervice #anagerC are the locker custodians.

Pre-re?uisite condition .or a6ailing the 1oc er .acility %ny person who wishes to avail the locker facility should ha6e an account 5ith Standard Chartered Ban as a pre)re>uisite condition. "he account that he maintains could be a .urrent %ccount, ;ixed 0eposit or -avings %ccount. "his is because the bank does not accept the rentals for the lockers in cash or through che>ues. "he rentals are collected by the banks by debiting the amount specified from the respective account of the customer. Charges and .ees (ranch will collect the rent on annual basis, in advance. "he rates vary with the si=e of the box, as shown belowN

32

;or delayed payment of rent, penal charges are applicable as prescribed from time to time. %lso, when a customer defaults payment of rental charges a red ta&e is put on the respective locker Bin -.(C. "his acts as a reminder for the locker custodians. Whenever, the customer approaches the bank to operate his locker, he would first be re>uired to clear the rental charges.

$&erations and monitoring !n -tandard .hartered (ank, ,anpur, #r. ,aushal , -rivastava B.hief .ashierC and #r. ?ikas -hah B"-# ) "eller -ervice #anagerC are the locker custodians. Qo person other than one of the locker custodians and the customer himself is allowed in the locker area. 4ach locker is operated through a combination of two keys. 9ne key is with customer and the other with locker custodian. "he operating timings for the safe deposit lockers areN 8. 8. a.m to 3. p.m a.m to 11./ a.m

#onday to ;riday -aturday

!ncase the locker is not operated for a period of more than one year for high$risk category customers and three years for medium risk category customers, (ank shall intimate the customer to operate the locker. !f deemed necessary, bank shall break$ open such lockers following the laid down procedure. "his will be carried out even if the hirer is paying the rent regularly. Anlike other banks, in -.( only one person i.e. the authori=ed signatory is allowed access to a locker.

3/

;or the purpose of convenience and to be able to give personal attention, the customers in -.( are segregated into different departments according to their account si=es as followsN .ustomer

P-Ms 'Personal -inancial Managers+ X 3 lakhs

RMs 'Relationshi& Managers+ 3 lakh XY amount Z 2 lakh

PrB 'Priority Ban ing+ ZY 2 lakh

"he &;#s and +#s are given targets related to -avings %ccount, .urrent %ccount, .redit .ards, !nsurance and -!& B-ystematic !nvestment &lanC. "hese products are explained belowN

"+ Sa6ings Account

Pur&ose and #escri&tion: "he -avings %ccount is a transaction account wherein a deposit is placed with the bank for an unspecified period of time. "he depositor can withdraw the money whenever re>uired through any of the following meansN 32

o .he>ues o "ransfers o "hrough an %"# Bby %"# or %"#$cum$04(!" cardsC o -tanding instructions o +emittances o ?!-% money transfer o !(;" B!nter (ank ;unds "ransferC o (y making purchases on a linked 0ebit .ard at merchant establishments

"nterest Paid: !nterest on the account is determined in accordance with the directives of the +eserve (ank of !ndia B+(!C. "he current rate is /.3F. !nterest is calculated on the #inimum .redit (alance between the close of the business on the 1
th

and the last day of each calendar month.

!nterest is credited to the account every calendar >uarter.

Sa6ings Account Products o..ered by SCB aScess&lus -avings %ccount -uper?alue -avings %ccount &ariwaar -avings %ccount 2$in$1 aScess&lus %ccount aScess&lus 0ebit .ard

33

% summary of these accounts and the charges associated is shown on the next page. % comparison of the -avings %ccount products offered by -.( and those offered by other banks has also been indicated with the help of various brouchers.

""+ Current Account

.urrent %ccount is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. .urrent %ccounts are che>ue operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business. <ence they are non$interest bearing accounts. !n a .urrent %ccount, a customer can deposit and withdraw any amount of money any number of times. :enerally, a higher minimum balance as compared to -avings %ccount is re>uired to be maintained in .urrent account. (ecause of the large number of transactions in the account and volatile nature of balances maintained, banks usually levy certain service charges for operating a .urrent account. Current Account Products o..ered by SCB : (usiness &lus 4nhanced (usiness &lus 1 4nhanced (usiness &lus 1 :roup .urrent %ccounts o 4(& 1 o 4(& 1 :roup :roup

36

% summary of these accounts and the charges associated is shown on the next page. % comparison of the .urrent %ccount products offered by -.( and those offered by other banks has been made through brouchers.

"""+ 0erm #e&osits

!hat is a term de&osit> "erm 0eposits are the deposits repayable to the customer on the expiry of a fixed period of time. "he interest offered on these deposits depends on the period of these deposits. "he interest rates are sub*ect to change from time to time depending on the market conditions and the guidelines laid down by +eserve (ank of !ndia B+(!C. Common -orms o. 0erm #e&osits -i;ed #e&osit :

;ixed amount held for certain period, where the interest is paid every >uarter and the principal amount is paid back or renewed based on customer instruction. Rein6estment #e&osit:

-imilar to a fixed deposit with the difference that the interest payable every >uarter is compounded with the principal amount. "he interest is paid alongwith the principal on maturity. Recurring #e&osit:

35

% certain amount is deposited every month as a monthly installment for a certain period. "he total amount deposited over the period is paid with accrued interest on maturity. "nterest calculation ;ormula for 2ormal "nterest CalculationN "nterest earned L Princi&al M 2umber o. days M Rate o. "nterest 'P2R+ ;ormula for "nterest Calculation 5ith Premature Brea o. #e&osit : "his will have two entriesN 'a+ Credit .or .ull interest amount '5ithout &enalty+ Credit ,ntry L &rincipal [ Qumber of 0ays [ +ate of !nterest WhereD Qumber of 0ays Y ;rom the date of deposit booking Bor renewal dateC till the deposit breaks. +ate of !nterest Y +ate for the original tenor, for which the deposit was booked 'b+ #ebit ,ntry .or Penalty #ebit ,ntry L -tep 1 U -tep 2 -tep 1 Y &rincipal [ Qumber of 0ays [ &enalty !nterest +ate -tep 2 Y &rincipal [ Qumber of 0ays [ !nterest +ate WhereD Qumber of 0ays Y ;rom the date of deposit booking Bor renewal dateC till the deposit breaks &enalty !nterest +ate Y &enalty !nterest +ate is 1F Bby defaultC !nterest +ate Y !nterest rate on original tenor minus the interest rate applicable for the .ompleted tenor "nterest ,arned L Credit ,ntry - #ebit ,ntry

36

"9+ Credit Cards

.redit cards are plastic cards with a magnetic strip.<olders of a valid credit card have the authori=ation to purchase goods and services up to a predetermined amount, called a credit limit. "he vendor receives essential credit card information from the cardholder, the bank issuing the card actually reimburses the vendor, and eventually the cardholder repays the bank through regular monthly payments. !f the entire balance is not paid in full, the credit card issuer can legally charge interest fees on the unpaid portion. #i..erence bet5een a #ebit card and a Credit Card "he basic difference between a 0ebit .ard and a .redit .ard is that the 0ebit .ard gives the user access to his own money. 9n the other hand .redit .ard access in simple terms is the credit offered to the user by his bank. % 0ebit .ard is a Buy 2o5 Pay 2o5 option while a .redit .ard is a Buy 2o5 Pay 1ater option. 0y&es o. Credit Cards o..ered by SCB 4mirates &latinum .ard &latinum .ard #anhattan &latinum .ard #anhattan .redit .ard 4mirates "itanium .ard -uper ?alue "itanium .ard (usiness .ard :old +ewards

9+ "nsurance
!hat "s "nsurance> !nsurance is a contract between two parties, the insurer or the insurance company, and the insured, the person seeking the cover. Within this contract, the insurer agrees to pay the insurer for financial losses arising out of any unforeseen events or risk in return for a regular payment of premium. "hus, these insurance plans are also called as a +isk .over &lans. -.( does not offer its own insurance products. +ather it provides the products available with Bajaj Allian/ 1i.e "nsurance Com&any F Royal Sundaram General "nsurance 1imited8 38

Priority Ban ing

%s explained above &riority (anking deals with high$valued customers i.e. ZY 1 lakh. Within &ersonal (anking, &riority (ankingIs role is to identify, nurture and grow the affluent customers within -.(. "he &riority (anking 6ision is to be the (u$ber ) $arket lea"er in provi"ing full financial services an" relationship $anage$ent to affluent custo$ers regar"less of their lifest les# nee"s or require$ents an ti$e# an how# an where! "he customers in the &riority (anking department are very demanding as they are <igh Qet Worth !ndividuals B<Q!C. 9ffering them the right products and services is a critical success factor in &riority (anking business. &riority (anking customers re>uire special and prompt services. ;or the same reason the ser6ices and the sales de&artments o. &riority ban ing ha6e been segregated8 "he sales department deals only with sales and not services. "he service department in &riority (anking delivers the minutest level of banking services to its customers. %lso they do not report to the (ranch #anager. "he .ustomer -ervice 9fficers reports to the .ustomer -ervice #anager at the regional level. #any a times the &riority (anking customers re>uire immediate transfer of funds beyond what is available in their accounts. "hese are known as ,;cess A&&ro6al Re?uests ',AR+. "he .ustomer -ervice 9fficers at the branch level have an authority to grant an approval upto +s.3 , J$. "he .redit <ead, +egional level can grant an approval of upto +s.1 , , J$. "he .redit <ead, #anager can grant an approval of upto +s.2 , , J$. "he .ountry <ead can grant an approval of upto +s.1, , , J$.!f later the customer defaults on the payment, a 1oss Re&orting 0em&late '1R0+ is raised against him. "his is handled by the .ollection 0epartment.

!ealth Management
"his is an important department of the bank. "his department ensures that the money deposited by the customers of the bank is invested in the right place so as to maximi=e the returns to them. "he personnel in this department have a high expertise. 9ut of the various viable options they select the most profitable ones after a thorough study. .ustomi=ed investment services are provided to the customers i.e. each customer is advised as per his ability to bear the risk.

eSa6er
"his part of the research deals with the description, comparative analysis and promotion of a specific product of -tandard .hartered, e-aver. Product Pro&osition "he e-aver account is a sa6ings account 5ith a lin ed 0erm #e&osit which enables the customer to maximi=e interest earnings. %ll surplus funds above a pre$determined threshold will be swept on a daily basis into a linked fixed deposit in multiples of a fixed amount i.e. KtrancheI for a pre$determined tenure. "his will essentially have an auto make and auto break facility. 9n maturity of the "0, the same shall get auto renewed for the same tenor. "he customer will have the option of setting the threshold limit for his account Bminimum +s.23, C, the tranche$values Bminimum +s.1 , C for "0 creation and the tenure of the term deposit Bfrom 13 days $/63 daysC. ,g: %ssuming the customerIs balance is +s.55,3 at the end of the day and he has kept the threshold at +s.3 , and the tranche$value at +s.1 , !Q+. % single "0 of +s.2 , Bmultiple of tranche$valueC will be created and the residual funds of +s.5,3 Bi.e. 55,3 $3 , $2 , Y5,3 C will remain in the savings account Bin addition to the threshold of +s.3 , C. "hough the tranche value is +s.1 , , on any given day, only one deposit will be created in multiples of the tranche$value. Process o. brea ing o. 0#s "he "0 will get broken when the balance in the linked -avings %ccount falls below the specified threshold. !t will break in such a way so as to ensure that the balance in the -avings %ccount is maintained at the threshold. Se?uence o. brea ing o. 0#s "he "0s will get broken on 1"-$ 'i8e8 1ast "n -irst $ut+ se?uence8 !f there is a shortfall in the -avings account, the most recently created "0 will break first. !f that is not sufficient, then the next recent "0 would break and so on, in that order. "his will ensure that the customers have minimum interest loss Bper annumC on premature breakage of "0. =&&er limit on the 0# 6alue "he cumulative value of all linked "0s under the e-aver cannot exceed +s.3 lakhs. !f the balance in the -avings %ccount is greater than +s.3 lakhs, then a "0 will be created for +s.3 lakhs only. "he balance money will continue to remain in the -avings %ccount.

61

0# 0enure "he "0 tenure will have to chosen at the time of taking up the account. "he same tenure will be applied for all "0s booked. Penal Rate .or Premature Brea ing o. 0# &remature breakage of "0 will attract a penalty rate of 1F. A6erage Kuarterly Balance 'AKB+ Re?uirement "he %@( re>uirement on the account will be met solely by the -avings %ccount balance. "he sum of value of all linked deposits will not be taken into account. $ther -eatures ;irst Year ;ree &latinum 0ebit .ard Anlimited cash withdrawals at all %"#s Tero ;uel -urcharge on all petrol pumps on 0ebit .ard ;ree 9nline (anking ;ree #obile (anking ;ree 22J5 &hone (anking #andatory 4 statements Ani>ue +ewards &rogram

62

Com&arati6e analysis o. eSa6er 5ith other Ban s *8 State Ban o. "ndia 'SB"+
2ame o. the Product -eatures o "he customer would open a -avings %ccount and set a threshold limit. o %ny surplus funds in the account exceeding the threshold limit, for a minimum amount o. Rs8*(,((( and in multi&les o. Rs8*,((( in any one instance, are transferred as "erm 0eposit and earns interest as applicable to "erm 0eposits. o "he customer can chose the tenure of the deposit ranging from 1 year to 3 years. o ;lexibility to set any threshold limit of +s.1 , and above. : Sa6ings Plus Account

28 C#-C Ban
2ame o. the Product -eatures o 9ptional sweep out facility to transfer extra savings to a ;ixed 0eposit, at the threshold o. Rs8I(,(((. !n the event of the balance in the -avings#ax %ccount exceeding +s.3 , year * day &eriod8 o ;ree unlimited transactions. , the amount in excess of +s.3 , will be swept out into a ;ixed 0eposit 5ith a minimum 6alue o. Rs82I,((( .or a * : Sa6ingsMa; Account

6/

o ;ree &ayable$at$&ar B&%&C che>uebook. o 3 F off on the 'ocker rental for the first year only. o ;ree Q4;" facility

G8 Ban o. Baroda
2ame o. the Product -eatures o #inimum (alance N #etro Arban .(- (ranches balance in multiples of +s.1 , account in multiples of +s.1, $ $ $ +s.23, +s.13, +s.2 , : Su&er Sa6ings Account

o %uto J +everse -weepN %uto transfer of funds exceeding the minimum to a short deposit. %uto +etransfer to the from the short deposit, in case funds are

re>uired in the account to bring the customer high interest with high li>uidity. o !mmediate credit of outstation che>ues upto +s.23, o !nterest payable ) @uarterly o -afe 0eposit 'ockers on priority basis .

H8 Punjab 2ational Ban 'P2B+

2ame o. the Product -eatures o !nitial 0eposit %mount ) +s.3 : P2B Prudent S5ee&

62

o #inimum @uarterly %verage (alance ) +s.23, o -weep !n and 9ut N -weep !n and 9ut shall take place in the -avings %ccount after the cut off level of +s.23, minimum of +s.3, i.e. any balance above +s.23, , with a and thereafter in multiples of +s.3, would be swept in to

a ;ixed 0eposit for either 8 or 158 days, as opted by the customer. !f the balance in the -avings %ccount falls below the minimum re>uired the amount would swept out of the ;ixed 0eposit. o "he customer would get the prevailing ;ixed 0eposit interest rates on the amount swept in and out in the accounts provided it had remained under the ;0 portion for a minimum period of 12 days. o !ncidental .hargesN +s.13 @uarterly %verage (alance. per >uarter for not maintaining the stipulated

I8 A;is Ban
2ame o. the Product -eatures: o % ) %ccessibility o . ) .onvenience o . ) .omfort o , 4 ,arnings By &ro6iding the dual bene.it o. -le;i #e&osit this &roduct hel&s to ma;imi/e the returns on the account8 Any balance in the account 5hich is in e;cess o. Rs82I,((( or any higher limit s&eci.ied by the customer 5ill be trans.erred automatically to a high earning .i;ed de&osit account in multi&les o. Rs8*(,(((8 o - $ -peed o - $ -ervice : ,asyAccess Sa6ings Account

63

N8 %ota Mahindra Ban

!n ,otak #ahindra (ank no such specific product has been designed. "his facility is not limited to a specific product. !nstead, the customers can avail this facility on any -avings %ccount held with the bank. !n any instance, when the funds held in any -avings %ccount is e>ual to more than the @uarterly %verage (alance designed for that account, the surplus funds would automatically get transferred to a "erm 0eposit for a tenure of 1 1 days.

O8 "C"C" Ban
!.!.! (ank had such a product uptill 2 product. 3. %fter that the bank discontinued with such a

Sur6ey conducted to no5 the A5areness o. eSa6er

With the ob*ective of generating leads for e-aver we had conducted a survey. !t was reali=ed that instead of approaching the customers individually, identifying a group of potential customers was more feasible. With this ob*ective in mind a survey was conducted. "he findings of the survey have been recorded here.

Analysis and -indings o. Primary #ata

*8 "he graph below indicates the percentage of respondents who have and who have not invested in the ASa6ings cum -i;ed #e&osit< product.

66

"n6estment in Sa6ing cum -i;ed #e&osit

/6F

Yes Qo
62F

-indings: %bout 62F of the respondents have already invested in the Sa6ing cum -i;ed #e&osit. "herefore, these are not the potential customers for -tandard .hartered (ank. %bout /6F of the respondents who have not as yet invested in any -avings cum ;ixed 0eposit product in any bank constitute the potential customers for the bank. "hus, with the help of this >uestionnaire we were able to identify the target group of customers.

28 "he next graph indicates the preferences of respondents for different banks with respect to the -avings cum ;ixed 0eposit product.

65

"n6estment in Sa6ing cum -i;ed #e&osit

/3. /2.61

/ .

Percentage o. Peo&le

23.

2 . 13.6/ 13. 12. 6 12.3 1 .82 1 . 6.23 3. 5.61

-(!

-.(

%S!-

(ank of (aroda

<0;.

,otak

9ther

2ame o. Ban

-indings: "he above graph shows that except for -(! the preference for banks regarding the -avings cum ;ixed 0eposit product is almost e>ually distributed. %ll the private banks en*oy an almost e>ual preference. "he high priority en*oyed by -(! can be *ustified on the basis of a low threshold limit and a low tranche value.

G8 "his graph indicates the percentage of people interested in the -avings cum ;ixed 0eposit product.

66

"n.ormation o. Sa6ings cum -i;ed #e&osit &roduct

/2F Yes Qo 66F

-indings: "he previous chart showed us that about /6F of the respondents have not as yet invested in any -avings cum ;ixed 0eposit product. <owever, only /2F of them are actually interested in knowing about the product. "hus, this information helps us to identify the potential customers out of the target group of respondents. "his information is vital for the bank to maximi=e the sales of e-aver.

Suggestions .or im&ro6ements in the Sa6ings cum -i;ed #e&osit #e&osit

%dvertisements should be proper. +9! should be given on a per day basis. !nitially, the banks create the ;ixed 0eposit automatically. (ut once broken this is not done unless instructions are given by the customer. %lso the customer is not intimidated about it. #aximum benefit details should be provided. #ore schemes should be designed which target small and very small depositors.

9ie5s o. ,;&erts

68

 Mr8 Bar at Ali, Assistant General Manager, State Ban o. "ndia, Eonal $..ice Kues8 Since the &ast decade the &ri6ate ban s ha6e been .lourishing8 Co5 has this a..ected the business o. 2ationali/ed Ban s> Ans8 "he private banks had flourished in the past decade. (ut the recent facts and figures show that many of the big names have been running into big losses. "he business of Qationali=ed (anks has therefore not been much affected by them. Kues8 0he ser6ice o. Pri6ate Ban s is much better8 "s this not a disad6antage to your ban > Ans8 "he service of Qationali=ed (anks has been improving with each day. -(! is currently training its employees under the program K&arivartan !!I. (esides ! can give an example to *ustify the level of service provided by private banks. -uppose there are two shopkeepers. 9ne sells the products at a reasonable and a uniform rate to all customers. "he other changes the rates offered by him >uite fre>uently. "he former would be straightforward in his dealings. "he latter, however, would talk in a highly polished manner. -(! has the best products and the best rates in the country. Kues8 !ho do you thin is a major com&etitor .or SB"> Ans8 -(! is the largest bank in the country. "he logo of -(! depicts this. !ts outer circle covers the rich class, while the inner circle attempts to cover the poorest of individuals. <owever, %xis (ank is coming up to be a good bank. Kues8 Jour o&inions about the sco&e o. retail ban ing in %an&ur8 Ans8 ,anpur is an industrial city. +etail banks in the city have been persistently increasing and the existing ones have been reforming themselves. "here is a great scope for further improvements to meet the potential demands of the deni=ens.

Mohd Aiman, Branch Manager, "C"C" Ban 1imited

Kues8 0he 2ationali/ed Ban s ha6e been im&ro6ing their ser6ice le6els8 Are you losing customers on account o. this> Ans8 "alking about service levels is one thing and implementing them is >uite another. "hus, we are not much worried about this. (esides, !.!.! is the second largest bank in the country. Kues8 Jour major com&etitor8 Ans8 ! think we face the ma*or competition from -(!. "his is because like -(!, !.!.! is also into #ass (anking and not .lass (anking. (esides -(! has the advantage of low cost funds which it transfers to its customers. Kues8 Jour o&inions about the sco&e o. Retail Ban ing Business in %an&ur8 Ans8 9ver the years we have witnessed a ma*or transformation in the working of retail banks in the city. "he city possesses a great potential for the banking business and is a ma*or area of business for us.

Suggestions and Recommendations

51

-tandard .hartered (ank is a high class bank with its presence in almost every country. !t incorporates within itself personnel of high expertise with many years of worthy experience. -uch an institution is self$sufficient in new ideas. <owever, an attempt has been made to make some contributions in the hope that they might be considered worthy of consideration. "hese suggestions have been made with the ob*ective of generating leads for sales conversion of e-aver. % potential group of customers could be the parents of students who have cleared standard S!! examinations this year. #any of these students would be considering the option of taking admissions in colleges other than in ,anpur. %pproximately all of such students are future users of %"#s, for which having a -avings %ccount is a pre$ condition. "herefore, parents of all such students can be considered as potential investors for e-aver. ;or the first time -tandard .hartered (ank has made a ma*or foray into advertising its product. #any a times pamphlets are given to students outside the school gates. <owever, in rare instances do they reach the parents. 9ne way of ensuring a proper reach is to attach these pamphlets with the new books list given to students at the start of a session. -ince new sessions were about to start this was all the more easy. %nother medium with a more wider reach would be advertising on the +adio. <owever, in this case due consideration would have to be paid to the time of advertising. (usinessmen and !ndustrialists drive to their workplace in the morning and drive back to their homes in the evening. "hus, the most lucrative time to advertise would be in the morning and in the evening.

52

Conclusion
+etail (anks are essentially the Gro5th #ri6ers of any economy. "hey are the institutions that support the functioning and ensure the smooth operations of various industries and sectors of the economy. "hey bridge the gap between various parties, thus enabling a >uick and timely execution of various transactions. With a persistent increase in competition and increasing demands of the consumers, there has been an on$going effort to make worthy and >ualitative improvements in the banking sector. <owever, much needs to be done as yet . "he rating given by the consumers to their banking experience is a testimony to the fact that consumers are expecting more and more. 4very day experts are making efforts in this direction. Anlike the past, today a customer would analyse and consider various diverse parameters before taking the decision of operating with the bank. "oday, an average customer not only considers the >uality of products and rates of tariffs but there are several other >ualitative aspects that he looks for when he decides to deal with a bank. ;or most of the people today twenty four hours in a day seems to be less. "hey are therefore expecting highly customi=ed services from the banks. !n the past the banks performed the routinised activities of accepting deposits and granting loans. (ut this is no longer the case. "oday, the banks are performing a very important function of Wealth #anagement. &eople hold a greater degree of reliability towards their banks. %nother important trend that has been witnessed in recent years has been a move towards Multi-Ban ing. .ustomers today are not restricting themselves to a single bank. "hey are availing the facilities of several banks together. "his explains that in the course of making improvements these institutions have to build their core strengths as well so as to retain their customers. !n the past decade there was a surging boom of &rivate (anks. "he volume of transactions of these banks was on a persistent increase and it was felt that in due course the Qationali=ed (anks would lose their significance and their names would fade out of the financial markets. <owever, this did not happen. "he nationali=ed banks reali=ed the importance of the increasing level of service provided by the private banks. #any of the nationali=ed banks have transformed their functioning. "oday, they too stand as a potential source of competition for the private banks. #y experience of 2 days at -tandard .hartered (ank was highly enriching and knowledgeable. ! had the wonderful opportunity of interacting with and learning from people who have a wealth of knowledge and experience. While working at the bank ! sensed the "heory$ &ractice gap. ! also reali=ed the importance of those minute details that we often tend to ignore, but which are highly relevant. "o >uote a simple example, the importance of filling up forms correctly. We often tend to ignore learning this

5/

considering it as a not so important work. <owever, we tend to forget that minute mistakes in this can actually affect the level of service provided to the consumers. "hough my training was more related to the field of ;inance, one enriching experience was the way of dealing with customers. ! had visited other banks too and ! felt that one of the core strengths of -tandard .hartered (ank is the benchmarked level of service that it provides to its customers, which is very important. #y visit to one of the other banks showed me the level of frustration that customers felt on not being paid personal attention. "he customer needs to be shown that he is important for the bank. ! learned that bringing in new customers is important but more important is retaining the existing ones. %ll the people at the bank were highly co$operative. !nspite of their busy schedules and the interruptions that my presence was causing they made it a point to take out some time and share their knowledge with me. "he summer training at -tandard .hartered (ank not only taught me the functioning of retail banks but also helped me to gain an insight into the other vital aspects which are essential for the smooth functioning of any organi=ation. !t helped me to groom my overall personality apart from giving me a thorough knowledge of the operational aspects. "hese learnings would go a long way in helping me to be successful in the corporate world.

52

B"B1"$GRAPCJ 0e;t boo s

+esearch #ethodology by ,othari +etail (anks by ,. ?. ,ammath Mag/ines 9utlook #oney (usiness World Articles (usiness -tandard +eview of +etail (anks by (oston .onsultancy :roup 2e5s&a&ers 4conomic "imes !ebsites www.rbi.org www.google.com www.managementparadise.com www.pakistanmba.*imdo.com www.googlemaps.com

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K=,S0"$22A"R,
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*8 !hich ban s as &er you are the AB,S0 BA2%S< in %an&ur> -(! -.( <0;. (9( %S!!.!.! &Q( %ny 9ther \\\\\\\\\\\\\\\\\\\

28 !hat are the reasons .or o&erating 5ith your most &re.erred ban > (asket of &roducts -ervice @uality :oodwill ?intage G8 !hat are the &roblems you .ace 5hile o&erating 5ith your &re.erred ban > Suggest any im&ro6ements8 .umbersome 0ocumentation &rocessing "ime 'ag &ersonal %ttention Qone "m&ro6ements: PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPP ;low of !nformation +esponse %ny 9ther \\\\\\\\\\\\\\\\\\\ "ariffs J .harges 'ocational .onvenience %ny 9ther \\\\\\\\\\\\\\\\\

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H8 $n a scale o. * 'lo5est+ 4 I 'highest+ ho5 5ould you rate your current ban ing e;&erience> 1 2 / I8 Ca6e you in6ested in any ASa6ings cum -i;ed #e&osit<M &roduct>
M!t is a product which diverts your surplus savings account funds over a given threshold, to a term deposit automatically.

2 3

Yes ". Jes, in 5hich Ban > -(! -.( %S!<0;. ,otak

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N8 ". the ans5er to the abo6e ?uestion is 2$, 5ould you li e to no5 about the ASa6ing cum -i;ed #e&osit< &roduct> Yes Qo

O8 Can you suggest any im&ro6ements in the ASa6ing cum -i;ed #e&osit< &roduct> \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\ )8 According to you 5hich o. the .ollo5ing &roducts are o..ered com&arati6ely better in a ban you no5> ;ixed 0eposit -avings 0eposit .urrent %ccount !nsurance N (ank Qame N N N (ank Qame (ank Qame (ank Qame \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\ \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\

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!nvestments

(ank Qame

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