ashish kumar synopsis report on-axis-bank
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I.T. POINT
11, H.I.G. DOUBLE STOREY, RATAN LAL NAGAR
KANPUR (LC CODE- 00918)
A
SYNOPSIS REPORT
ON
“A Case Study on AxisBank”
Under the guidance of
Mrs. Reema Saxena
Submitted By
Ashish KumarREG.NO. 581122866
in partial fulfillment of the requirement
for the award of the degree
Of
Master of Business Administration
IN
Marketing Management
SIKKIM MANIPAL UNIVERSITY
Directorate of Distance Education
Syndicate House, Manipal - 576104www.smude.edu.in
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(2012-2013)
ACKNOWLEDGEMENT
It is with real pleasure that, I record my indebtedness to my
academic Guide, Lecturer Mrs. Reema Saxena for his guidance
during the preparation of this project.
I am grateful to (Director) Mr. S.K. Arora and my sincere thanks
to all faculty members of The SMU, IT Point Kanpur (LC Code:
00918)
Place: Kanpur
(ASHISH KUMAR )
Date: REG.NO:581122866
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INDEX1 BANKING IN INDIA
2 COMPANY PROFILE
3 MAJOR PLAYERSIN BANKING INDUSTRY
4 DETAIL DESCRIPTION OF AXIS BANK ON THE 7 Ps FRAMEWORK
5 PRODUCT AND SERVICES OF AXIS BANK
6 COMPETITIVE ANALYSIS & ADVANTAGES
7 MANAGER’S JOB RESPONSIBILITIES
8 MARKET SHARE
9 RELATED SERVICE INDUSTRY 10YR FROM NOW
10 EXISTING PROMOTIONAL & PRICING STRATEGY
11 GOVT. REGULATION
12 EXISTING MARKETING STRATEGY TO GAIN UPPER MARKET SHARE 13 RECOMMENDATIONS
14 BIBLIOGRAPHY
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BANKING IN INDIA:
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past
three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India's growth process.
HISTORY:
The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:
• PHASE I - Early phase from 1786 to 1969 of Indian Banks
• PHASE II - Nationalization of Indian Banks and up to 1991
• PHASE III - Indian Financial & Banking Sector Reforms after 1991.
PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These
three banks were amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders. During the first phase the
growth was very slow and banks also experienced periodic failures between 1913 and 1948.
There were approximately 1100 banks, mostly small. To streamline the functioning and
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activities of commercial banks, the Government of India came up with The Banking Companies
Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the
supervision of banking in India as the Central Banking Authority. During those day’s public has
lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the
savings bank facility provided by the Postal department was comparatively safer. Moreover,
funds were largely given to the traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector
Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking Institutions
in the Country:
• 1949: Enactment of Banking Regulation Act.
• 1955: Nationalization of State Bank of India.
• 1959: Nationalization of SBI subsidiaries.
• 1961: Insurance cover extended to deposits.
• 1969: Nationalization of 14 major banks.
• 1971: Creation of credit guarantee corporation.
• 1975: Creation of regional rural banks.
• 1980: Nationalization of seven banks with deposits over 200 crore.
After the nationalization of banks, the branches of the public sector bank India raised to
approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence
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about the sustainability of these institutions.
PHASE-III
This phase has introduced many more products and facilities in the banking sector in its reforms
measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his
name which worked for the liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give
a satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. The financial system of India has shown a great deal
of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as
other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the
foreign reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.
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COMPANY PROFILE: AXIS BANK
Axis Bank India, the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the
Unit Trust of India (UTI-I)
Life Insurance Corporation of India (LIC)
General Insurance Corporation Ltd.
Also with associates viz. National Insurance Company Ltd., The New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
Axis Bank in India today is capitalised with Rs. 232.86 Crores with 47.50% public holding
other than promoters. It has more than 200 branch offices and Extension Counters in the country
with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country.
Axis Bank India commits to adopt the best industry practices internationally to achieve
excellence. Axis Bank has strengths in retail as well as corporate banking. By the end of
December 2004, Axis Bank in India had over 2.7 million debit cards. This is the first bank in
India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank
customers in all the places across the country where it has presence.
With the AT PAR cheque facility, customers can make cheque payments to anybeneficiary at any of its existence place. The ceiling per instrument is Rs.
50,000/-.The latest offerings of the bank along with Dollar variant is the Euro and
Pound Sterling variants of the International Travel Currency Card. The Travel
Currency Card is a signature based pre-paid travel card which enables traveler’s
global access to their money in local currency of the visiting country in a safe and
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convenient way. The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to
achieve excellence
EVOLUTION:
UTI was established in 1964 by an Act of Parliament; neither did the Government of India own
it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of
Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-holders. The
State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital
each, and the rest was contributed by scheduled commercial banks which were not nationalized
then. This kind of structure for a unit trust is not found anywhere else in the world. Again,
unlike other unit trusts and mutual funds, the UTI was not created to earn profits.
In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in
achieving its objective and has the largest share anywhere in the world of the domestic mutual
fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes aninteresting story. The announcement by the then Finance Minister that the Government of India
was contemplating the establishment of a unit trust caught the eye of Mr. George Woods, the
then President of the World Bank. Mr. Woods took a great deal of interest in the Indian
financial system, as he was one of the principal architects of the ICICI, in which his bank, First
Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through Mr. B.K.
Nehru, who was India's Executive Director on the World Bank, the services of an expert.
The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust
proposals till the expert visited India. The only point Mr. Sullivan made was that the provision
to limit the ownership of units to individuals might result in unnecessarily restricting the market
for units. While making this point, he had in mind the practice in the US, where small pension
funds are an important class of customers for the unit trusts. The Centre accepted the foreign
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expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began
corporate investment in the UTI, which received a boost from the tax concession given by the
government in the 1990-91 Budget. According to this concession, the dividends received by a
company from investments in other companies, including the UTI, were completely exempt
from corporate income tax, and provided the dividends declared by the investing company were
higher than the dividends received.
The result was a phenomenal increase in corporate investment which accounted for 57 per cent
of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the
UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby
which perhaps subtly opposed the establishment of the UTI in the public sector made use of it
for its own benefits later. The Government-RBI power game started with the finalization of the
UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be
nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the
draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the
Government, albeit in consultation with RBI. Although the appointment was to be made in
consultation with the Reserve Bank, the Government could appoint a person of its choice as
Chairman even if the Bank did not approve of him.
BUSINESS DESCRIPTION:
The Bank's principal activities are to provide commercial banking services which include
merchant banking, direct finance, infrastructure finance, venture capital fund, advisory,
trusteeship, forex, treasury and other related financial services. The Bank has 463 branches and
263 extension counters throughout India. During April, 2006 the Bank open-end 1 overseas
branch in Singapore.
PROMOTERS:
UTI Bank Ltd. has been promoted by the largest and the best Financial Institution of the
country, UTI. The Bank was set up with a capital of Rs. 115 crore, with
UTI contributing Rs. 100 crore,
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LIC - Rs. 7.5 crore
GIC and its four subsidiaries contributing Rs. 1.5 crore each.
SUUTI SHARE HOLDINGS-27.33%
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a
view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed
with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the
Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with
effect from 1st February 2003.
BOARD OF DIRECTORS:
The Bank has 11 members on the Board. Dr. P. J. Nayak is the Chairman and Managing
Director of the Bank. The members of the Board are:
NAME DESIGNATION
Dr. P.J. Nayak Chairman & Managing Director
Shri Surendra Singh Director
Shri N.C. Singhal Director
Shri A.T. Pannir Selvam Director
Shri J.R. Varma Director
Dr. R.H. Patil Director
Smt. Rama Bijapurkar Director
Shri R.B.L. Vaish Director
Shri S.B. Mathur Director
Shri M.V. Subbiah Director
Shri Ramesh Ramanathan Director
MISSION AND VALUES:
OUR VALUES:
Customer Service and Product Innovation tuned to diverse needs of individual and
corporate clientele.
Continuous technology upgradation while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
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CORE VALUES:
Customer Satisfaction through
o Providing quality service effectively and efficiently
o "Smile, it enhances your face value" is a service quality stressed on
o Periodic Customer Service Audits
Maximization of Stakeholder value
Success through Teamwork, Integrity and People.
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7P’S FRAME WORK IN AXIS BANK:
Once the marketing strategy is developed, there is a "Seven P Formula" that should be used to
continually evaluate and reevaluate your business activities. These seven are:
Product,
Price
Promotion
Place
Process
Positioning
People.
As products, markets, customers and needs change rapidly, company must continually revisit
these seven Ps to make sure you're on track and achieving the maximum results possible for you
in today's marketplace.
1. PRODUCT
To begin with, develop the habit of looking at your product as though you were an outside
marketing consultant brought in to help your company decide whether or not it's in the right
business at this time. Ask critical questions such as, "Is the current product or service, or mix of
products and services, appropriate and suitable for the market and the customers of today?"
Develop a habit of assessing your business honestly and asking,
Are these the right products or services for our customers today?
Compared to your competitors, is your product or service superior in some significant
way to anything else available? If so, what is it? If not, could you develop an area of
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superiority? Should you be offering this product or service at all in the current
marketplace?
Product variety, quality and its features.
Is there a market for the service on offer?
Is the market growing or shrinking?
Is the service new or established?
The competition prevailing in the market for the service on offer?
The USP of the product.
Products and Services on offered by AXIS Bank:
Accounts
• Easy Access Accounts
• Prime Savings Account
• Salary Account
• Women’s Saving Account
• Senior Privilege Account
• Defense Salary Account
• Trust & NGO Savings Account
• Azzadi –No frills
• RFC (D) Account
• Pension savings Account.
Deposits:
• Fixed Deposits
• Recurring deposits
• Encash 24
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• Tax Saver Fixed Deposits
Loans:
• Home loan
• Personal loan
• Loan Against Property
• Loan Against Security
• Car Loans
• Study Loans
• Two Wheeler Loan
• Consumer Loan
Investments:
• Online Trading
• Mutual Funds
• Fixed Income
• Depository Services
• E Depository Services
Insurance:
• Health Insurance
• Family Health
• Health Guard
• Hospital Cash
2. PRICES
The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still
appropriate to the realities of the current market. Sometimes you need to lower your prices. At
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other times, it may be appropriate to raise your prices. Many companies have found that the
profitability of certain products or services doesn't justify the amount of effort and resources
that go into producing them. By raising their prices, they may lose a percentage of their
customers, but the remaining percentage generates a profit on every sale. Could this be
appropriate for you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading
your price over a series of months or years, you can sell far more than you are today, and the
interest you can charge will more than make up for the delay in cash receipts. Sometimes you
can combine products and services together with special offers and special promotions.
Sometimes you can include free additional items that cost you very little to produce but make
your prices appear far more attractive to your customers.
In business, as in nature, whenever you experience resistance or frustration in any part of your
sales or marketing activities, be open to revisiting that area. Be open to the possibility that your
current pricing structure is not ideal for the current market. Be open to the need to revise your
prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace.
AXIS bank has developed innovative strategies against its competitors with respect to pricing
by use of technology. The use of technology is the strategic differentiator for AXIS bank thathelps in cost minimization and creating efficiency for the customer. The creation of centralized
processing system linking all its branches has been a major strategic move in this regard.
The pricing mechanism and features of various HDFC products are as follows:
Home Loans:
Floating rates:
For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at
9.25 per cent (9 per cent).
The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50
per cent).
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The interest rate for above ten years now stands at 10.25 per cent (10 per cent).
3. PROMOTION
The third habit in marketing and sales is to think in terms of promotion all the time. Promotion
includes all the ways you tell your customers about your products or services and how you then
market and sell to them. Small changes in the way you promote and sell your products can lead
to dramatic changes in your results. Even small changes in your advertising can lead
immediately to higher sales.
AXIS bank has devised an aggressive promotional strategy through its diversified distribution
mix which includes tied agencies and alternate channels like banks, brokers, telemarketing,
direct sales force, internet advertizing .
Some of the promotional activities undertaken are:
Cross Selling exercises
Organizing school level painting competitions in order to create awareness about
the environmental concerns and the wild life to promote kids advantage account.
Wheels of fortune - This promo are targeted at all those customers who avail a
personal loan, car or a two wheeler loan. There will be lucky draw at the end of
the promo and the winners would get exotic prizes.
Personalized promos by sending mailers about various products on offer to all
those who come in contact during the mass promotion strategies.
The promotional strategies are carried out with an objective of positioning AXIS
bank as a one stop financial super market. The focus of the promotions are not just
confined to acquisition of new products but also extends to creating productawareness, enhancing usage, and also provide value add to the customers for their
faith and loyalty.
These promotions are scientifically designed based on data analysis and data mining
in order to have maximum impact on the target audience.
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4. PLACE
The fourth P in the marketing mix is the place where your product or service is actually sold.
You can sell your product in many different places. Some companies use direct selling, sending
their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing.
Some sell through catalogs or mail order. Many companies use a combination of one or more of
these methods. It refers to those activities of the company that makes the product available to
target consumers. It includes geographic spread, distribution channels, dealer ships that
facilitate network establishment. Axis bank is widely spread in India and its core banking
operations has huge network –
• 580 branches and extension counters foreign offices – in Singapore, Hong Kong,
Shanghai and Dubai
• 2457 ATMs reaches out to 350 cities, towns and villages across the country
AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby
lowering the operating costs. It uses its network base to good effect to sell customized products.
5. PROCESS
The fifth element in the marketing mix is the process. Develop the habit of standing back and
looking at every visual element in the process or service through the eyes of a critical prospect.
Remember, people from their first impression about you within the first 30 seconds of seeing
you or some element of your company. Small improvements in the process or external
appearance of your product or service can often lead to completely different reactions from your
customers.
With regard to the process of your company, your product or service, you should think in terms
of everything that the customer sees from the first moment of contact with your company all the
way through the purchasing process.
Process refers to the way your product or service appears from the outside. Packaging refers to
your people and how they dress and groom. It refers to your offices, your waiting rooms, your
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brochures, your correspondence and every single visual element about your company.
Everything counts. Everything helps or hurts. Everything affects your customer's confidence
about dealing with you.
6. POSITIONING
The next P is positioning, the habit of thinking continually about how you are positioned in the
hearts and minds of your customers.
How do people think and talk about you when you're not present?
How do people think and talk about your company?
What positioning do you have in your market, in terms of the specific words people use
when they describe you and your offerings to others?
AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible
to maximum customer. It has also come up with some phone banking centre and centralized
collection and payment hub.
7. PEOPLE
The final P of the marketing mix is people. Develop the habit of thinking in terms of the people
inside and outside of your business who are responsible for every element of your sales and
marketing strategy and activities.
It's amazing how many entrepreneurs and businesspeople will work extremely hard to think
through every element of the marketing strategy and the marketing mix, and then pay little
attention to the fact that every single decision and policy has to be carried out by a specific
person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with
the skills and abilities to do the job you need to have done, is more important than everything
else put together. An essential ingredient to any service provision is the use of appropriate staff
and people. Recruiting the right staff and training them appropriately in the delivery of service
is essential if the organization has to obtain competitive advantage.
AXIS bank values its human resources very highly and is on a constant endeavor to
continuously develop its human resources by laying strong emphasis on training development. It
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possesses a highly motivated team of professionals and has the lowest employee turnover rate in
the industry.
SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:
BUSINESS CONTINUITY CENTRE:
UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC)
In Bangalore which replicates the entire centralized database with a view to enable the Bank to
run smoothly in case of any eventuality affecting the Bank’s Data Centre in Mumbai.
Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously
through WAN on the back-up database at the BCC.
CENTRALISED PHONE BANKING CENTRE
The Bank’s Centralized Phone Banking Centre provides customers across the country
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Access to the Bank over the phone, handling multiple queries in about 7000 calls per day.
CENTRALISED COLLECTION AND PAYMENT HUB
The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and
Payment activity under the Bank’s Cash Management Services (CMS) across the country,
handling on an average about Rs.5000 crores per month on the collection front and about
Rs.1500 crores per month on the payment front.
RETAIL ASSETS MANAGEMENT GROUP
The Bank’s Retail Assets Management Group (RAMG) is the operations hub of the entire
Retail asset distribution structure. In addition to opening and disbursing more than 3000
Schematic loans every month, it is responsible for the maintenance of more than 100,000
Such loan accounts, and handles the entire post – dated cheque presentation and several
Kinds of repayments for all these accounts.
ATM BACKEND CELL
The ATM Backend Cell handles the entire cash management and reconciliation of balances
pertaining to ATMs across the country and ends up tallying over four lakh
Transactions by the end of the day.
SERVICE BRANCHES
The Bank’s Service Branches in the 8 major metros take care of centralized clearing activity,
Handling more than one lakh cheques every day for outward and inward clearing.
DATA CENTRE
The Bank’s Data Centre in Mumbai, the centralized IT powerhouse is like the central nervous
system of the Bank. It is a real time 24x7 setup which manages 270 products and services of the
Bank with a database size of 1850 GB supporting on an average 42 lakh transactions per day
to service over 42 lakh customer accounts and adding new customers @ 8000 per day.
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CENTRALISED PROCESSING UNIT
The Bank’s Centralised Processing Unit (CPU) is the backbone of the Bank, managing
production and delivery of the entire range of deliverables to customers across the country
within 24 – 72 hours from the time the customer opens the account. The CPU currently handles
about 8500 new accounts every day.
JOB RESPONSIBILITIES OF A MANAGER
Job description
A banker is responsible for establishing and maintaining positive customer relationships,
planning and delivering effective sales strategies and monitoring the progress of new and
existing financial products. Bankers may work as managers in high street branches providing
operational support on a day-to-day basis, or in more specialized posts in corporate or
commercial departments at area, regional or head offices.
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Banks operate in a fiercely competitive marketplace where change is common. Products and
services offered have to develop to satisfy the expectations and demands of customers and
working with staff and customers to achieve targets has become a very major part of the role.
Typical work activities
Responsibilities and work activities may vary between retail and corporate and commercial
banking. Most retail bankers work in high street branches, dealing with both private and
corporate customers, while some work in regional or head offices. Bankers who work with
commercial or corporate customers may be based in branches or may work from specialized
area or regional offices.
Bankers who have area and regional responsibilities adopt a strategic role and, whilst retaining
overall accountability for service and product delivery, usually delegate supervision of day-to-
day operations to staff in branch outlets.
Responsibilities for both retail and corporate and commercial bankers may include:
• implementing the delivery of sales strategies and targets and motivating employees to
meet these;
• establishing and maintaining effective relationships with new and existing customers,
establishing their needs and advising on the suitability of services;
• visiting business customers and attending meetings and conferences with them and other
professionals;
• managing and supporting staff and facilitating appropriate continuing professional
development (CPD);
• communicating, implementing and monitoring compliance with corporate standards and
procedures;
• processing data to produce accurate facts, figures and reports;
• evaluating new and renewal lending proposals, negotiating terms with customers and,
where appropriate, submitting proposals to the credit department for approval;
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• checking accounts and initiating action if they are overdrawn without arrangement or are
in excess of agreed arrangements;
• assuming overall accountability for products and services, such as consumer lending,
current account transactions, unsecured loans, overdrafts, credit cards and personal
loans;
• networking with appropriate professionals;
• Representing the bank within the wider community.
EXISTING PRICING AND PROMOTIONAL STRATERGIES:
In the banking industry the pricing strategies is concerned with the rate of interest these banks
offer to the customers on there investments and also the rate of interest they levy on the
customers for different type loans. These also include service charges they charge on the
customer for the services they offer.
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PROMOTIONAL STRATERGIES:
In early 1950's most of the markets were choking with surplus products on offer, defying the
theory "the best quality will always sell". The emergence of Branding as a value in offering has
kept many organizations leaders, and in survival. Branding is termed as a part of offering,
created in the mind of customer and consumer of superior values that he or she perceives and
ready to pay for. The brand can be associated with superior product, superior services, superior
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sales after services, or easy access. In today's era with increasing competition, is that not
important enough to revisit Brand as a marketing offering (Product or Service).
GOVERNMENT REGULATION IN BANKING:
Banking Regulation Act, 1949
As per Section 5(c) of Banking Regulation Act, 1949 a "Banking Company" means any
company which transacts the business of banking in India.
Any company which is engaged in the manufacture of goods or carries on any trade and
which accepts the deposits of money from public merely for the purpose of financing its
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business as such manufacturer or trader shall not be deemed to transact the business of
banking within the meaning of this clause."
As per Section 5(b) of Banking Regulation Act, 1949 , banking means the accepting, for
the purpose of lending or investment, of deposits of money from the public, repayable
on demand or otherwise, and withdrawals by cheque, draft, order or otherwise.
As per Section 5(d) of Banking Regulation Act, 1949, company means any company as
defined in Section 3 of the Companies Act, 1956 and includes a foreign company within
the meaning of Section 591 of that Act.
As per section 51 of Banking Regulation Act, 1949, certain provisions of the Banking
Regulation Act are also applicable to the State Bank of India, any corresponding new
bank, a regional rural bank and any subsidiary bank. "Corresponding new bank" has
been defined under clause (ee) of section 2 of the DICGC Act to mean a corresponding
new bank constituted under the Banking Companies (Acquisition and Transfer of
Undertakings) Acts of 1970 or 1980.
National Housing Bank Act, 1987
Section 2(d) of the National Housing Bank Act, 1987 defines a housing finance institution as
under:
"Housing finance institution includes every institution, whether incorporated or not, which
primarily transacts or has as one of its principal objects, the transacting of the business of
providing finance for housing, whether directly or indirectly"
Reserve Bank of India Act, 1934
Section 2(d) of the National Housing Bank Act, 1987 defines a housing finance institution as
under
"Financial Institution" means any non-banking institution which carries on as its business or
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• the acquisition of shares, stock, bonds, debentures or securities issued by a government
or local authority or other marketable securities of a like nature;
• letting or delivering of any goods to a hirer under a hire-purchase agreement as defined
in clause (c ) of section 2 of the Hire-Purchase Act, 1972;
• the carrying on of any class of insurance business;
• managing, conducting or supervising, as foreman, agent or in any other capacity, of chits
or kuries as defined in any law which is for the time being in force in any State, or any
business, which is similar thereto;
• collecting, for any purpose or under any scheme of arrangement by whatever name
called monies in lump sum or otherwise, by way of subscriptions or by sale of units, or
other instruments or in any other manner and awarding prizes or gifts, whether in cash
or kind, or disbursing monies in any other way, to persons from whom monies are
collected or to any other person.
As per Section 45-I (f) of the RBI act, "non-banking financial company" means: - a financial
institution which is a company;
a non banking institution which is a company and which has as its principal business the
receiving of deposits, under any scheme of arrangement or in any other manner, or lending
Tiny manner;
EXISTING MARKETING STRATERGIES TO GAIN UPPER MARKET SHARE:
The Bank continues to identify new thrust areas to sustain its growth, and these include:
Growth in credit to the SME and agriculture sectors that will be driven by a network of
rural and semi urban branches supported by organizational reinforcement in the form of
SME cells and agriculture clusters.
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Reinforcement of the international remittance business. The Bank has already tied up
with various banks and exchange houses in the Gulf for tapping the high-volume
remittance business emanating from this region.
New initiatives such as Wealth Management will enable the Bank to advice and to cross-
sell third party products to high net-worth customers.
An expansion in the overseas branch and representative office network, commencing
with the first branch in Singapore, will create opportunities for cross-border trade
finance, syndication of debt and NRI business.
RECOMMENDATIONS TO THE COMPANY TO GAIN UPPER MARKET SHARE:
UTI Bank was one of the first private banks to launch operations in the country in 1994, after
the Government of India passed a resolution in favor of privatization. An IT savvy bank, UTI
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Bank is a pioneer in adopting new technologies in the banking sector. UTI has a very large
network of branch offices and extension counters across the country. With over 1700 ATMs,
UTI Bank has the largest ATM network of its kind in India.
CRM:
Privatization opened up the Indian banking sector, allowing a large number of players to offer
retail banking services in the country. Using the latest technologies, UTI Bank introduced
quality services to enhance the banking experience of its customers. As the services stack
expanded, supporting customers became a challenging task. Efficient service and timely support
were the deciding factors for customers to remain loyal to any particular bank, which brought
Customer Relationship Management (CRM) into sharp focus.
BPO:
UTI Bank wanted to establish itself as a customer focused bank and carve a niche for itself
amidst the widespread competition. Setting up a state of the art call center facility that could
provide quality support to customers across the country became vital to further this goal. The
call center was expected to eliminate the load of routine queries that branch operators had to
handle. A dedicated response center would allow branch operators to divert all customers’
queries to the helpdesk number and focus on their core responsibilities instead. Also, a single
window service with a populated knowledgebase would introduce a high degree of
standardization in the replies given to customer queries. The bank was also looking to avoid a
situation where customers would be put on hold for long periods of time. A failover and
redundancy solution was required to guarantee high availability of services and ensure
uninterrupted call traffic. For handling large call volumes, the application infrastructure was
also required to be perfectly scalable. The bank wanted a solution that could accommodate
growth over a long period of time.
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Conclusion
UTI Bank has been turned into an Open Source believer after the success of its call center
project. The bank has set the lead for the hundreds of BPOs and call centers in the country to
follow. By running their CRM infrastructure on an open, standards based platform .BPOs can
achieve significant TCO reduction along with high performance and security.
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BIBLIOGRAPHY:
1. www.utibank.com
2. www.google.co.in
3. www.finance.india.mart.com
4. www.banknetindia.com
5. www.rbi.org
6. www.moneycontrol.com