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1. Industry Overview

1. OverviewThe Indian Banking Industry can be categorized intoscheduled banks and non-scheduled banks. Scheduled banksconstitute commercial banks and co-operative banks. Thereare about 67,000 branches of Scheduled banks spread acrossIndia. As far as the present scenario is concerned the BankingIndustry in India is going through a transitional phase.ThePublic Sector Banks (PSBs), which are the base of the Bankingsector in India account for more than 78% of the totalbanking industry assets.The growth of banking in the coming years is likely to bemore qualitative than quantitative. The pace of expansion in the balance-sheets of banksis likely to decelerate.

Government policy is expected to allow greater FDI inbanking and the move to amend Banking regulations Actaimed at removing the existing 10%t cap on voting rights ofshareholders is pointer to these developments

Revenue

SCBs continued to perform robustly during FY08 owing to an encouragingmacroeconomic environment. Even though SCBs credit growth was moderate, becauseof RBIs policy initiatives, their deposit growth was impressive; but fall in term depositsmade the growth tad lower than previous years growth. Owing to strong deposit growthand moderate credit growth, SCBs credit deposit ratio declined.

Growth Drivers and Potential1. Increasing emphasis by banks on fee-based services to boost income growth.

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2. Favourable demographics and rising income levelsRising literacy rate, speciallyin rural India, has increased the need for banking.

i. Between 2006 and 2026, the working population (2560 years) isexpected to increase from 675.8 million to 795.5 million giving

rise to a favourable market for banks.ii. Projected per capita GDP is expected to increase from US$ 380.8

in 200001 to US$ 2,097.5 in 2026, reflecting higher disposableincome

3. Conducive banking environment with well-capitalised banks provides a base tomeet the growing need for banking services. India has a well-balanced mix of publicand private sector banks. While public sector banks provide stability to the bankingsystem in the country, private sector banks add the necessary dynamism to it

4. Large amount of money is remitted by non-resident Indians (NRIs), one of the

largest diasporas in the world.

Cost Structure

0

20

40

60

80

JFM 10(E) JFM09(A)

cost structure of banking industry

Interest

expencesstaff cost

operating exp

p&c

The interest expenses for the company constitute the highestexpenditure in the cost structure. Operationexpenses costs around30% of the operation income during the period. The staff expenses hasbeen marginally increasing in the recent quarters. The tax charge isaround 6 to 8% of the total income and recently it is seeing a fallingtrend. Rest all expenses of the company is maintained in the same

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level in the year 2010. The cost structure of the company is expectedto see changes in coming years

BANKS OP.

INC

OTHER

INCOME

OP.

EXP.

INTERES

TPAID

ADMIN

. EXP.

PBT TAX PAT

SBI 100 17.76 25.76 65.23 9.85 26.78 7.58 13.75

BOI 100 17.13 21.41 65.77 8.00 29.96 5.47 16.26

PNB 100 14.00 17.70 61.20 7.46 28.08 8.74 14.36

INDUSTRY INSIGHTS

The total Assets of 77 SCBs rose by more than double to Rs 43,264.9 bn during FY08, ascompared to the asset base of Rs 19740.2 bn in FY04. During FY08, the total asset baseof the SCBs was equivalent to 91.8% of Indias GDP, as compared to 62.7% of GDP inFY04. Public Sector Banks (PSBs) dominate the banking industry with a contribution ofclose to 69.9% to total assets, followed by private sector banks which account for around21.7% of total assets.

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2 . Indian Scenario

Major Players & Current Developments:-State Bank Of India :-

State Bank of India (SBI) is India's largest commercial bank. It has a vast domesticnetwork of over 10000 branches and commands one-fifth of deposits and loans ofall scheduled commercial banks in India. It includes a network of eight bankingsubsidiaries and several non-banking subsidiaries offering merchant bankingservices, fund management, factoring services, primary dealership in governmentsecurities, credit cards and insurance. The origins of State Bank of India date back to1806 when the Bank of Calcutta was established. In 1921, the Bank of Bengal and two

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other Presidency banks were amalgamated to form the Imperial Bank of India. In 1955,the controlling interest in the Imperial Bank of India was acquired by the Reserve Bankof India and the State Bank of India came into existence by an act of Parliament assuccessor to the Imperial Bank of India. Presently State Bank of India has spread its armsaround the world and has a network of branches spanning all time zones. SBI's

International Banking Group delivers the full range of cross-border finance solutionsthrough its four wings - the Domestic, Foreign Offices, the Foreign Department and theInternational Services division

Current Developments

General Motors (GM) India Ties Up With State Bank of India-BusinessLine

Thursday, 17 Dec 2009Business Lines reported that General Motors (GM) India

announced a tie-up with State Bank of India to provide financing for its vehiclesboth at wholesale and retail levels. According to the agreement, GM India and SBIwill promote schemes offering easy finance options to their customers by

leveraging the pan-India presence of State Bank of India.

State Bank of India To Launch $4.2 Billion Rights Issue-Reuters

Wednesday, 9 Jun 2010

Reuters reported that State Bank of India expects to launch a INR200 billion ($4.2billion) rights issue in the second half of 2010/11.

Bank Of Baroda

Bank of Baroda (BoB) provides banking and financial services to theindividual, business, and corporate customers in India and internationally. Itssolutions include personal banking, which includes deposits, retail loans,credit cards, debit card, lockers and other services.Business banking comprises deposits, loans and advances, services and lockers; corporatebanking includes cash management and remittances, multi-city cheques, appraisals and

merchant banking; international business includes import finance, international treasury,export finance, correspondent banking and other solutions; treasury banking comprisesdomestic operations and forex operations, and rural banking, which includes retail loan,small businesses and small scale industries. As of 2008, the company operated a networkof 2800 branches in India. It also operates approximately 73 overseas branches in 25countries

Current Developments

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Dubai Multi Commodities Centre Authority and Bank of Baroda Sign

Memorandum of Co-Operation Agreement

08/18/2010

Dubai Multi Commodities Centre Authority (DMCC) and Bank of Baroda have signed a

memorandum of co-operation which will see the bank offer financial services tocompanies licensed by DMCC. The companies will have access to a wide suite offinancial products and services provided by the bank, including borrowings for propertypurchases in the Jebel Ali Free Zone, working capital, long-term trade and commodityfinancing and other services. DMCC and the bank will also share knowledge throughseminars, workshops and exchange of visits.

Bank of Baroda Reports Unaudited Earnings Results for the Quarter Ended June

30, 2010

07/29/2010

Bank of Baroda reported unaudited earnings results for the quarter ended June 30, 2010.

For the quarter, the bank reported interest of INR 47,269.6 million and total income ofINR 53,442 against interest of INR 40,321.1 million and total income of INR 47,351.5million a year ago. Profit from ordinary activities before tax was INR 12,765.4 millionagainst INR 10,488.9 million a year ago. Net profit from ordinary activities was INR8,591.6 million against INR 6,853.8 million a year ago. Basic and diluted EPS before andafter extraordinary items, net of tax expenses was INR 23.59 against INR 18.82 a yearago. Net interest income of the bank rose 54.2% to INR 18,579.9 million.

Bank of Baroda to Unveil Online Banking Services

07/29/2010

Bank of Baroda will launch its online Internet banking services, enabling online instant

transactions. Bank of Baroda, which is working with the objective of becoming the 'most-preferred bank' in the UAE, is expected to launch a mobile customer service centre soon.The bank foresee a 50% growth in business during this financial year which would meanthat would in fact be pumping approximately AED 5 billion into the UAE economy.

ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for

the year ended March 31, 2010. The Bank has a network of 2,035 branches and about5,518 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range ofbanking products and financial services to corporate and retail customers through avariety of delivery channels and through its specialised subsidiaries in the areas ofinvestment banking, life and non-life insurance, venture capital and asset management.The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branchesin United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and DubaiInternational Finance Centre and representative offices in United Arab Emirates, China,

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South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The UK subsidiary hasestablished branches in Belgium and Germany. ICICI Bank's equity shares are listed inIndia on Bombay Stock Exchange and the National Stock Exchange of India Limited andits American Depositary Receipts (ADRs) are listed on the New York Stock Exchange(NYSE).

Current Developments

ICICI Bank Limited And Dish TV Launch Banking Interactive Service-Economic

Times

Tuesday, 7 Oct 2008

The Economic Times reported that ICICI Bank and Dish TV launched interactivebanking service, ICICIATIVE, that would enable subscribers to access information onthe bank's products and services from their home. Through ICICIACTIVE, Dish TVviewers would get information about various types of ICICI Bank accounts and deposits.

ICICI Bank Limited And Singapore Airlines Ltd. Announces Launch Of Co

branded Credit Card-Business Standard

Tuesday, 31 Mar 2009

Business Standard reported that ICICI Bank Limited in association with SingaporeAirlines Ltd. launched the co branded ICICI Bank Singapore Airlines Visa Platinum Cardin the Indian market.

ICICI Bank Limited Board Approves Merger Of Bank of Rajasthan Limited

Monday, 24 May 2010

ICICI Bank Limited announced that the Board of Directors of the Bank at its meetingheld on May 23, 2010, has approved the Scheme of amalgamation of Bank of RajasthanLimited with ICICI Bank Limited. The Company has been decided to convene anExtraordinary General Meeting on June 21, 2010, to seek the approval of the Members tothe Scheme of Amalgamation of The Bank of Rajasthan with ICICI Bank.

Government Regulations

The Finance Ministry continuously observe and formulate major policies of the financialsector of the country. The Government accepted the important role of regulators. The

Reserve Bank of India (RBI) has become totaly independent. Securities and ExchangeBoard of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA)became important institutions. Opinions are also there that there should be a super-regulator for the financial services sector instead of multiplicity of regulators.

Branch Authorisation Policy The RBI announced a new Branch Authorisation Policyin September 2005 underwhich certain changes were brought about in the authorisationprocess adopted by the RBI for the bankbranches in the country. As against the earlier

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system, where the banks approached the RBI, piece meal,through out the year for branchauthorisation, the revised system provides for a holistic and streamlined approach for thepurpose, by granting a bank-wise, annual aggregated authorisation, in consultation andinteraction with each applicant bank. The objective is to ensure that the banks take anintegrated view of their branch- network needs, including branch relocations, mergers,

conversions and closures as well as setting up of the ATMs, over a one-year timehorizon, in tune with their own business strategy, and then approach the RBI forconsolidated annual authorisations accordingly.

Income recognition

Income recognition is based on objective criteria of record of recovery rather than on anysubjective considerations. In line with international practice, income on non performingloans (NPLs) is recognised on a cash basis. Since March 31, 2004, Indian banks havemigrated to the more stringent 90-day norm from the 180-day norm for recognising NPL,

barring crop loans, where NPLs are recognised if interest or instalment of principalremains overdue for one or two crop seasons depending on the type of crop. When acredit facility is classified as a NPL, the interest, fee, commission and other income thathave been accrued on the facility but not realised have to be reversed. Loans withcollateral of term deposits and life insurance policies may not be treated as NPL ifadequate margin is available. Since August 2004, the invocation of guarantee has notbeen necessary for the classification or provisioning of state government guaranteedloans.

Restructuring or rescheduling of principal instalments would not change the category ofthe asset. If the interest is rescheduled, the present value of the sacrifice has to be

accounted by debiting from income. A restructured NPL is eligible for upgrade to astandard category only after one year from the first payment of the restructured interest orprincipal instalment, subject to satisfactory performance during the period. Fees andcommission earned by banks as a result of re-negotiations or rescheduling should beaccrued over the rescheduled period.

Classification of non performing loan

With effect from March 31, 2005, RBI reduced the time frame within which banks haveto classify NPLs as doubtful to 12 months from 18 months. Banks must now classify theirloans into four broad categories on the basis of the following criteria:

Standard assets: performing loans without any unusual risk

Sub-standard assets: loans that have remained as a NPL for a period of less than 12months

Doubtful assets: loans that have remained as a NPL for a period of more than 12 months

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Loss assets: loans that are uncollectible and have a little or no recovery value

In addition, the RBI also expects that the banks should formulate policies for classifyinga standard asset in the 'special mention' category if the asset exhibits potential weakness.

OUTLOOK FOR THE SECTORBanks today have a limited cushion (lower unrealized gains) on their G-Sec portfolio toprotect themselves from any adverse movement in interest rates. Higher adverse impacton the non-interest income for public sector banks in case of rise in bond yields as bankswould get impacted more by the provisioning requirements on the investments portfolio.At the same time, any significant tightness on the liquidity front is expected to adverselyimpact the interest margins and consequently the profitability of the private sector banksgiven their general higher reliance on wholesale funds. Consequently, banks could seesome volatility in the overall profits depending on the movement in the interest rates.

The introduction and adherence to the base rate by banks from April 2010 could helpbanks partially off-set any pressure on their profitability. The banks are expected tomaintain the operating expense under control though there could be some adverse impactof the wage hikes and superannuation liabilities, especially for the public sector banks.For the Banking Sector as a whole, rising interest rates, consistent with the imminentrevival in GDP growth and rising inflationary expectations, are not negative and wouldbe outweighed by an acceleration in core earnings growth, as Credit growth and FeeIncome picks up, while NPA losses trend downwards (for private banks to begin with,and for PSU banks 3-4 quarters hence). In a rising interest rate environment, banks with astrong CASA ratio and a lower duration investment book are relatively betterplaced (from an ALM standpoint). Banks such as HDFC Bank, and SBI top this list,

followed by other large private banks like Axis Bank and ICICI Bank who have at leaststrength in CASA deposits. In 2HFY10, as the confidence in economic recovery begun toincrease, the RBI began to exit the accommodative stance it had adopted during the crisisperiod by raising key policy rates. We expect further monetary tightening in 1HCY10, astaming inflation remains a key focus area.

3. MAJOR PLAYERS

Comparison of growth rates

BANK JFM 09 JFM 10 % GROWTHKOTAK 8.03 10.75 33.86ANDHRA 15.07 17.08 13.36

AXIS 30.39 29.88 -1.67

SIB 4.73 5.57 17.86

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S S T SSBI 4,355.21 3,373.36 45.41 5,665.65 10,186ICICI 2,305.10 1,958.66 31.10 3,453.12 1,400

PNB 1, 398.60 1,990.48 20.48 1,990.48 4,500

HDFC 1,007.69 634.27 15.90 1,332.51 1,412BOB 1,520.34 1,067.01 14.35 1,795.997 2,800

Trend of Revenue

State Bank Of India

07-08 06-07 05-06 04-05Op. Inc 489503.1

0

394910.3

0

357949.3

0

324280.0

0Inc. onInvst.

119441.60 114929.90 139775.30 160276.70

Other Inc. 86949.30 57692.50 73886.90 71199.10

CAR% 13.47 12.34 11.88 12.45

NPM% 13.75 11.50 12.31 13.27

InterestExp.

319290.80 234368.20 201592.90 184833.80

InterestonBalances

12000.80 27196.10 17609.70 17870.40

PAT 67291.20 45413.10 44066.70 43045.20

ICICI Bank

07-08 06-07 05-06 04-05Op. Inc 307883.40 229942.90 137844.90 94099.00

Inc. onInvst.

74660.10 59885.40 36927.60 22294.40

OtherInc.

88107.70 59291.70 49831.40 34161.40

OPM % 20.10 20.31 24.99 23.05

NPM% 13.50 13.53 18.43 21.31

Interest 234842.40 163585.00 95974.50 65708.90

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PaidPAT 41577.30 31102.20 25400.70 20052.00

Bank Of Baroda

07-08 06-07 05-06 04-05Op. Inc 118,134.70 92,126.40 71,000.00 64,314.10

Op P/L 30,285.50 24,150.10 20,318.50 23,019.10

OPM% 25.64 26.21 28.62 35.79

NPM% 12.15 11.14 11.65 10.52

Interest 79,016.70 54,265.60 38,750.90 34,521.50

PAT 14,355.20 10,264.70 8,269.60 6,768.40

Axis Bank (UTI Bank)

04-05 05-06 06-07 07-08Op. Inc 23999.80 36184.20 55705.10 88008.00

OPM% 23.57 27.47 24.46 18.71

NPM% 13.94 13.41 11.83 12.17

Interest 11929.80 18105.60 29933.20 44199.60PAT 3345.80 4850.80 6590.30 10710.30

Kotak Mahindra Bank

04-05 05-06 06-07 07-08Net Sales 5523.82 9369.54 42971.2 75493.91

OPM% 24.09 22.47 21.72 23.46

NPM% 15.37 12.62 12.21 12.70Interest 1948.23 3390.89 9764.28 18164.7

PAT 848.9 1182.31 5244.8 9587.26

7 Ps in Banking-

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Product Mix:-The banks primarily deal in services and therefore, the formulation of product mix isrequired to be in the face of changing business environment conditions. Of course thepublic sector commercial banks have launched a number of policies and programs for the

development of backward regions and welfare of the weaker sections of the society but atthe same time it is also right to mention that their development-oriented welfare programsare not optimal to the national socio-economic requirements. A proportional contractionin the number of customers is found affecting the business of public sector commercialbanks. The changing psychology, the increasing expectation, the rising income, thechanging lifestyles, the increasing domination of foreign bans and the changing needsand requirements of the customers at large make it essential that they innovate theirservice mix and make them of worked class. The development of new generic product,especially when the business environment is regulated is found a difficult task. However,it is pertinent that banks formulate a package in tune with the changing businessconditions. Against this background, we find it significant that the banking organizations

minify, magnify, combine and modify their service mix.

PROMOTIONAL MIX:

Promotion mix includes advertising, publicity, sales promotion, word of mouthpromotion, personal selling and telemarketing. Each of these services needs to be appliedin different degree. These components can be useful in the banking business

PRICE MIX:

In the formulation of marketing mix, the pricing decisions occupy a place of outstandingsignificance. The pricing decisions include the decisions related to interest and fee or

commission charged by banks. Pricing decisions are found instrumental in motivating orinfluencing the target market. The RBI regulates the rate of interest and the Indian BanksAssociation controls other charges. In our country, the price mix is more importantbecause the banking organizations are also supposed to sub serve the interests of theweaker sections and the backward regions. Also in making the pricing decisions , theGovernment Of India instrumentalists or commands everything as a shadow policymaker. This also complicates the price mix for banking sector.

THE PEOPLE

Sophisticated technologies no doubt, inject life and strength to our efficiency but theinstrumentality of sophisticated technologies start turning sour id the human resources are

not managed in a right fashion. We cant deny the fact that if foreign banks areperforming fantastically; it is not only due to the sophisticated information technologiesthey use but the result of a fair synchronization of new information technologies and ateam of personally committed employees. The moment they witness lack of productivehuman resources even the new generation of information technologies would hardlyproduce the desired results. In addition to the professional excellence, the employeesworking in the foreign banks are generally value- based. Thus we accept the fact thatgeneration of efficiency is substantially influenced by the quality of human resources.

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THE PROCESS

Flow of activities: all the major activities of banks follow RBI guidelines. There has to beadherence to certain rules and principles in the banking operations. The activities havebeen segregated into various departments accordingly.

Standardization: banks have got standardized procedures got typical transactions. In factnot only all the branches of a single-bank, but all the banks have some standardization inthem. This is because of the rules they are subject to. Besides this, each of the banks hasits standard forms, documentations etc. Standardization saves a lot of time behindindividual transaction.Customization: There are specialty counters at each branch to deal with customers of aparticular scheme. Besides this the customers can select their deposit period among theavailable alternatives.Number of stores: numbers of steps are usually specified and a specific pattern isfollowed to minimize time taken.Simplicity: in banks various functions are segregated. Separate counters exist with clear

indication. Thus a customer wanting to deposit money goes to deposits counter anddoes not mingle elsewhere. This makes procedures not only simple but consume lesstime. Besides instruction boards in national boards in national and regional language helpthe customers further.Customer involvement: ATM does not involve any bank employees. Besides, duringusual bank transactions, there is definite customer involvement at some or the other placebecause of the money matters and signature requires.

THE PHYSICAL EVIDENCE

The physical evidences include signage, reports, punch lines, other tangibles, employeesdress code etc. The companys financial reports are issued to the customers to emphasisor credibility. Even some of the banks follow a dress code for their internal customers.This helps the customers to feel the ease and comfortSignage: each and every bank has its logo by which a person can identify the company.Thus such signages are significant for creating visualization and corporate identity.Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks,chequebooks, etc reduce the inherent intangibility of services.Punch lines: punch lines or the corporate statement depict the philosophy and attitude ofthe bank. Banks have influential punch lines to attract the customers.

Bank of Baroda

Products & Services:-

Retail Banking , Rural/Agri Banking, Wholesale Banking , SME Banking ,

Wealth Management , DematProduct , EnquiryInternet , Banking , NRI

Remittances etc

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Price:-

The pricing decisions or the decisions related to interest and fee or commission

charged by banks are found instrumental in motivating or influencing the target market.

The RBI and the IBA are concerned with regulations. The rate of interest is regulated by

the RBI and other charges are controlled by IBA. The pricing policy of a bank is

considered important for raising the number of customers vis--vis the accretion of

deposits. Also the quality of service provided has direct relationship with the fees

charged. Thus while deciding the price mix customer services rank the top position.

The banking organizations are required to frame two- fold strategies. First, the strategy is

concerned with interest and fee charged and the second strategy is related to the interest

paid. Since both the strategies throw a vice- versa impact, it is important that banks

attempt to establish a correlation between two. It is essential that both the buyers as well

as the sellers have feeling of winning.

Baroda Home Loan to Individuals / NRIs / PIOsFixed Rate optionRepayment

PeriodUp to Rs. 30 Lacs Above Rs. 30 Lacs Upto 5 years 9.50% 10.25% Over 5 years

& up to 10 years 9.75% 10.50% Over 10 years & up to 15 yrs 10.00% 10.75% Floating

Rate option Repayment PeriodUp to Rs. 30 LacsAbove Rs. 30 Lacs and upto Rs. 50

LacsAbove Rs. 50 Lacs Up to 5 years 3.50% below BPLR i.e. 8.50% 2.75% below

BPLR i.e. 9.25% 2.25% below BPLR i.e. 9.75% Over 5 years up to 15 years 3.25%

below BPLR i.e 8.75% 2.50% below BPLR i.e. 9.50% 1.75% below BPLR i.e. 10.25%

Over 15 years up to 25 years 3.00% below BPLR i.e.9.00% 2.25% below BPLR i.e.

9.75% 1.50% below BPLR i.e. 10.50%

Place

The nearest branch from our institution is Bank of Baroda, Baroda Tower, GNBlock, Plot-38/2 , Salt Lake Sec V , Kolkata 700091

The Bank of Baroda has good location across the country. Bank of Baroda has an

extensive network of3082 branches spanning the length and breadth of the country.

There is a branch in the vicinity of everyone in need of a banking solution.

With a customer centric approach of being operational 24 hours a day, across 25

countries, the bank branches are the last door you will have to knock while on the

lookout for an answer to your queries .

Promotion:

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Promotion is nothing but making the customer more and more aware of the services and

benefits provided by the bank. Bank of Baroda uses a lot of new technology to

communicate to their customers. Two of the fastest growing modern tools of

communicating with the customers are:

1. Internet Banking

2. Mobile Banking

Television advertisements , newspapers , magazines etc also are used .

People:

Bank of Baroda has always had an immense faith in the infinite potential of its people.This has been historically demonstrated in its recruitment practices, developmental

initiatives, placement processes and promotion policies. Strategic HR interventions like,

according cross border and cross cultural work exposure to its managers, hiring diverse

functional specialists to support line functionaries and complementing the technical

competencies of its people by imparting conceptual, managerial and leadership skills,

gave the Bank competitive advantage. The elaborate man management policies also made

the Bank a breeding ground for business leaders. The Bank provided around a dozen

CEOs to the industry- men who went on to build other great institutions. People

initiatives were blended with IR initiatives to create an effectively harmonious

workplace, where everyone prospered.

Process:

Bank of Baroda follows the allotment of lockers process in the following manner:

1. The lockers are allotted on first come first served basis to the customers only. A

waiting list register is maintained by the branches for the purpose.

2. At the time of hiring the locker, bank will obtain a Fixed Deposit under banks

lien which would cover 3 years rent and the charges for breaking open the locker

in case of an eventuality.

3. The hirer of the locker will be provided the copy of the agreement i.e.

Memorandum of Letting by the bank.

4. Loss of key should be immediately informed to the Branch.

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5. With standing instruction, the rent may be paid from the deposit account of the

hirer on due date.

6. Where the lockers have remained un-operated for more than three years for

medium risk category or one year for a higher risk category, the bank may ask the

Renter/Lessee to either operate the locker/give valid reason for not operating the

same or surrender the locker even though the rent is paid regularly. In case the

Renter/Lessee does not respond nor operate the locker, the bank would have the

right to cancel the allotment of the locker and may consider break opening the

lockers after giving due notice to the Renter/Lessee.

Physical Evidence:

Physical evidence is the overall layout of the place i.e. how the entire bank has been

designed. Physical evidence refers to all those factors that help make the process much

easier and smoother. For example, in case of Bank of Baroda, the physical evidence is the

placement of the customer service executives desk and the location of the place for

depositing cheques. It is very necessary that the place be designed in such a manner so as

to ensure maximum convenience to the customer and cause no confusion to him. Mostly

nationalized banks fails to provide maximum convenience to customers when compared

to private banks

Major Offerings

BoB Cards:- (Bank Of Baroda)

BOBCARDS Ltd,a wholly owned Subsidiary of Bank of Baroda.The Company is in

the business of Credit Cards, Debit Cards & Forex Operations. 100% subsidiary of Bankof Baroda, one among the pioneers in Indian card market.The company is in the business

of Credit cards, forex operations & Debit cards. Bank of Baroda had introduced its first

charged card named BOBCARD in the year 1984. The whole operation of this plastic

card was managed by Credit card division of Bank of Baroda.

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Verified by Visa (VBV) is an easy to use, secured online payment service from

BOBCards that lets you shop securely online with your existing BOBCards Visa Credit

Card. This service through a simple checkout process, confirms your identity when you

make purchases on the Internet.

MasterCard SecureCode is an easy to use, secured online payment service from

BOBCards that lets you shop securely online with your existing BOBCards MasterCard

Credit Card. This service through a simple checkout process, confirms your identity when

you make purchases on the Internet.

Through a personal assurance message displayed on the screen and which is shared only

between you and the BOBCards, the authenticity of the page requesting your

authentication is assured. We suggest you to keep changing your password at regular

intervals for increased safety.

SHG MOVEMENT A MISSION: State Bank of India

SBI has taken up SHG movement as a mission. A noble mission to reach those familieswho were hitherto having no access to the credit by any formal financial institution and,therefore, were depending on informal sources and moneylenders.SBI has actively participated in SHG-Bank Credit Linkage programme since its inceptionin 1992 as a pilot project of NABARD. Since then the Bank has made a steady progress

in financing SHGs. As on March 2006, SBIs branches spread throughout the length andbreadth of the country have opened 6,30,067 Savings Bank account of SHGs out ofwhich more than 5.41 lacs SHGs have been provided with credit facilities thus benefitingmore than 75 lacs poor people. Majority of these SHGs are women SHGs.SBI is maintaining its position as a leader among Commercial Banks in credit linking ofSHGs and is a prime driver for the movement. As at the end of March 2006, SBI with ashare of approximately 47% of total SHGs financed by Commercial Banks is far ahead ofothers.

ICICI Bank ( Rural Savings Account)

Features

The Rural Savings Account will be available through Business Correspondents. The account is zero balance with no initial deposit. The Customer is provided with an E-passbook. All transactions in the accounts are done only after a biometric authentication.

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Nomination facility is available. Interest is payable half-yearly.

Nomination Facility

Nomination facility available for bank deposits. There can be only one Nominee for a deposit account whether held singly or

jointly. A person legally empowered to operate a minor's account can file a nomination on

behalf of the minor. Applicants can make nomination by filling up the Form prescribed under the

Banking Companies (Nomination) Rules 1985. The nomination details can be changed during the subsistence of the account

relationship by filling up the Form prescribed under the Banking Companies

(Nomination) Rules 1985.

Axis Bank Silver Health (Personal Insurance)

Health care costs are high and getting higher. As the age of an individual increases thehealth care costs increase manifold and become a burden on the individual. Seniorcitizens have to pay out of their hard earned savings to meet the expenses. Bajaj Allianz's

Silver Health Plan for senior citizens protects you and your spouse in case you needexpensive medical care. You get cashless benefit or medical reimbursement forhospitalization expenses due to illness or accidents.

Coverage:

Hospitalization expenses and an amount equivalent to 3% of admissiblehospitalization expenses in respect of any and all pre and post hospitalizationexpenses.

Ambulance charges in an emergency subject to a limit of Rs 1,000. Pre-existing illnesses are covered from the second year of the policy.

The company's liability in case of any pre-exiting illness from the second year ofthe policy would be restricted to 50% of the limit of indemnity in a policy year.

The policy has a lifetime indemnity limit of three times the limit of indemnityspecified in the earliest senior citizen plan, if the policy is renewed continuously.

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Kotak Edge Salary Account (Kotak Mahindra Bank)

A savings avenue that makes the most of the hard-earned money. Kotak Edge SalaryAccount, armed with Kotak ActivMoney and our entire gamut of Banking Privileges. The

feature rich Kotak Edge Salary Account is the ideal way to make your money workharder.

ActivMoney

Kotak Edge Salary Account combines liquidity of a Savings Account with the attractivereturns of a Term Deposit through the unique Kotak ActivMoney benefit.

Kotak Advantages

Experience the 'edge' while banking through a host of advantages offered by your KotakEdge Savings account.

Free At-par Cheques , Free Cheque Collection , Free Electronic Fund Transfer , FreeDemand Drafts, Free Demat Account , Reimbursement Current Account , FreeInvestment Account , etc

Brand Positioning

State Bank Of India

Promotion campaign , rationally explaing why SBI is better than other banks.The bank has taken the positioning of Pure Banking emphasizing that SBI does what itdoes best : Pure banking. The bank has now took the tagline" Pure Banking , Nothingelse" takes a dig at new generation banks that spent lot of time doing non bankingfinancial services.A new TVC is also running which shows a young guy getting impressed by the servicesoffered by SBI which is his old parent's bank. The recent print and tvc is aimed atshedding the " old public sector bank" image of SBI and make it more relevant to theyoung customers. The bank is now running a mix of Rational, Humor and emotionaladvertisement to promote the bank. Laudable and Surprising.

Bank Of Baroda

Change of Logo:- BOB appointed Gartner Consulting in April 2001 to assist the bank inassessing the situation, developing a new business strategy and in enabling an IT strategy.The Gartner report revealed that the bank had a complex symbolic logo and its taglinewas more focused on the primary and secondary activities of the economy. These facts, inaddition to a serious lack of consistency in displaying or reproducing it, in terms of

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colors, designs, layouts, typefaces and text, could be the reason for the low unaidedrecognition of the logo among both consumers and non-consumers. Roger Tuvy, aGartner analyst, said that the bank needed to improve its marketing efforts.Gartner also suggested a new re-positioning strategy revolving around taglines likeBaroda: same (PSB) strengths, but with a new commitment to customers;

Baroda: the superior PSB brand, with a new feel for customer service; Baroda:responsible lenders for your future.

The top management of BOB commenced interventions relating to HR, organizationstructure and business processes and took up branding as part of a holistic transformationto reposition the bank. An open tender was held and bids were invited for the selection ofa brand design consultant. Ray & Keshavan, Bangalore-based brand consultants, werechosen to develop a new logo. Ray & Keshavan proposed the idea of a vermilion coloredBaroda Sun and BOBs Board of Directors approved it in late 2004.The Baroda Sun The Intended Significance The sun is one of the most recognizable symbols the world over and it nurtures life. The morning sun is symbolic of change; a change from night to day.

The suns five rays symbolize the global presence of BOB, in the sense that the rays fallacross the five continents of the world. The vermilion color symbolizes loyalty in India, where married Hindu women wear iton the forehead as a mark of loyalty to their husbands. The Baroda Sun is at an angle, to represent the dynamic nature of the bank.For the first time in the banks history, it was decided that the bank should have a brandambassador. BOB believed that it had found the perfect match in Rahul Dravid. Firstly,just as BOB had been a financially secure bank since its inception, Rahul Dravid was alsoperceived to be a player of consistent and dependable quality in the Indian cricket team.Secondly, Rahul Dravid was never involved in any controversies, personal orprofessional. Thirdly, the essentially male customer base of the bank could better relateto Rahul Dravid compared to Sushmita Sen, who was considered too up-market forBOBs consumers. Finally, Rahul Dravid is an international star and is a well-knownpersonality across the cricket-playing nations of the world.This international status of Rahul Dravid was in line with the new positioning strategy ofBOB.The contract with Rahul Dravid, worth about INR 50 million, was signed in April 2005for a period of three years and three month Khandelwal wrote a letter to all the 40,000BOB employees explaining to them the necessity of re-branding the bank and changingthe logo. A house journal, Bobmaitri, especially devoted to this theme, was publishedand circulated internally.

ICICI Bank

To dominate customers mind in the Indian markets, Amitabh Bachhan was chosen as thebrand ambassador , complementing the brand values of :-

Towering personality, perceived as trustworthy, impeccable lineage.

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In 2006 , ICICI Bank signed Shahrukh Khan as the global brand ambassador , this wasdone for reaching out to the global Indian.

ICICI Lombard:1) Very Simple Strategy by tapping the rural market against the urban market.

2) Tie ups with various dairy companies and banks.

ICICI Prudential:1) Launching of new policies which guaranteed income at very low risks.2) Continuation of life insurance policies which offered insurance also in the scenariowhere there was break in the premium.

3) Feel good factor for the strata of the people nearing retirement.

ICICI Home Loan:1) Higher income savings for people holding high cost loans.

2) Transferring of normal loans to the ICICI home loan.3) Prepayment on the old loan and processing fee on new loan.

4) Free door to door service.

AXIS Bank

The recommendation for name change to Axis Bank has arisen from the existence ofseveral shareholder-unrelated entities using the UTI brand, and the consequent brand

confusion that this generates. The name UTI bank was changed to AXIS bank as UTIgave a look of government sector bank. They had to change our name to have our ownbrand and identity

The name was taken into effect consequent to the approval of shareholders,Reserve Bank of India and the central government (Registrar of Companies).

The UTI brand is owned by UTI Asset Management Company The bank would change logo and colour of logo the bank is likely to spend around

Rs 50 crore in the re-branding exercise. The bank acquired the services of Ogilvy & Mather (O&M) to design and

implement the rebranding campaign

The new name was chosen considering the banks pan-Indian as well asinternational presence.

The first time that a bank has dropped an established brand for an unknown name.

The name Axis is chosen as it is simple and it conveys a sense of solidity and asense of maturity. It also has a universal appeal

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KOTAK MAHINDRA BANK

Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance), unveiled itsnew brand tagline Faidey Ka Insurance. The new positioning statement conveys, LifeInsurance with Investment Edge in a direct and concrete manner. The new tagline issupplemented by a novel advertising campaign, which conveys this shift in an innovativeand refreshing manner.Today consumers seek beyond protection and endowment from their insurance plans. Inthis context, leveraging Kotaks core strength of investment expertise seemed a naturalextension for the brand. Hence the brand idea became Life Insurance with InvestmentEdge, expressed as Faidey ka Insurance. The new positioning is a reflection of KotakGroups extensive strength in the area of research and capital markets.

ADVERTISEMENT ANALYSIS

STATE BANK OF INDIA

Surprisingly SBI

SBI has been on an overdrive in the advertising world with a series of campaignsfollowing the much acclaimed " Surprisingly SBI" campaign. The entire world wassurprised because of the aggression of India's largest bank. The bank was successful inchanging the perception of many new generation customers about the key advantages ofSBI like " largest number of ATMs", branch connectivity etc.

Then came the second series of campaign " Every Indian's Banker".The ad was a big fallfrom the quality hype created by " Surprisingly SBI" campaign. The second seriescampaign was aimed at projecting the bank as a common man's bank which served nostrategic purpose as such. Every one knew that SBI used to serve all class of Indians. Thesecond series of ads served no business or brand purpose. Neither the ad gave any new

information to the consumers nor it invoked any brand equity for SBI.

Then came the third series of the campaign. The series is currently running across media.The ad shows India's eminent personalities like Tagore, Bose to Tata with the caption -The Banker to this Indian. The brand is trying to show off that it was the banker to themost eminent sons of the soil.

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Bank Of Baroda

Rahul Dravid

Bank of Baroda had spend about Rs 80 crore (Rs 800 million) on a high-profile

rebranding campaign, including Rs 5 crore (Rs 50 million) on the brand ambassador,Indian cricket team's captain, Rahul Dravid. The roping in of Rahul Dravid as the brandambassador was an offshoot of the urge to present the bank as a charismatic frontrunningfinancial entity. The earlier BoB brand had no recall value. People had a very clutteredimage of the bank. Now that's a thing of the past. The BoB brand now generates a verybright image and it now is highly recallable.

In the first 45 days of the Rahul Dravid campaign, marketing staff enrolled 12.6 lakh(1.26 million) more customers and mobilised Rs 650 crore (Rs 6.5 billion) of savingsaccount deposits. This was the result of BoB executives stepping out of their offices forbusiness. Dravid was not just a mascot or a cosmetic creation for the bank. There was

tremendous pressure on them for speedy changes. Students and professionals would notlook at BoB earlier. Now, they were getting attracted.

ICICI Bank

Jeete Raho

Jeete Raho! That says stay alive for ever is a custom here in India so elders bless thereloved once by blessing Jeete Raho! . The company has been successful in

communication this punchline and tinkling the sight emotional cord.

The formation of a punchline is a strategic decision that brands arrive at after a detailedanalysis of there competitors there brands value there brands perception and many otherfactors.

ICICI Prudential Life Insurance had launched its new promotional campaign Jeete Rahothrough the movie.

Recent campaigns of jeetay raho they became more rational rather than emotivebecause other category is no longer new .

Their target customers were in the age group of 30-40 years.Channels they were focusing were star, zee and Sony tv.ICICI PRUDENTIAL was run on tv. With emotional type of films strike chord withaudience.They were also providing product information through print andoutdoor channels.Through their advertisement strategies they established themselves as market leader in

private players and now as they are in

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expansion mode their ad is more focusing on features of product and benefits tocustomers because other category is no longer new

AXIS BANK

The Bet at Nathu La!

The advertisement starts with two army personnel sitting somewhere in Nathula Pass.Now, Nathula Pass is of historical importance as it was sealed in 1962 following theSino-Indian war. Having reopened after many bilateral and trade treaties were signed,Nathula is one of the three border trading posts between China and India.The plot of the story essentially stars a Yak a long-haired bovine thats found inHimalayan regions as the centre piece of the bet between two army men. The bet issimple, yet stupidly funny. If the Yak turns its head back, one wins, while the other loses.

The stakes are unimaginably high at a hundred rupees!

As the two army men shake on it and the bet is a go, the eagerness is mounting up, so isthe anxiety. What will the Yak do? Will it turn its head back or not? The answer isrevealed shortly. The Yak turns its head back and one of them loses the bet. Upon beingasked to shell out a hundred, he checks his wallet and discovers that he does not havehundred rupee notes at all. On hearing this, the winning Army man holds the other guyshand and makes him walk to Axis Banks ATM.

Now, this is where the advertisement really shines the moment the loser of the bet saysthat he does not have hundred rupee notes, the winner holds his hand and makes him get

up to walk to the ATM. As he holds the hand, the entire act makes for the shape of AxisBanks logo. The second USP is the promotion of the fact that Axis Bank operates ATMsin as remote a place as Nathula Pass.

Additionally, consumers perception of banks on the whole has also undergone greatchange from consumers thinking of banks as being unprofessional, slow, cumbersomeand inefficient to now being seen as easy to access, quick and efficient. Competition inthe category has clearly changed the category norms.

Axis Banks Theres always a solution tagline will go onto become the philosophy thatAxis Bank will embrace; in word and essence. The communication campaign that will be

seen on television, outdoor and through branch / bank owned media will highlight thedelivery of the brand promise through a wide product range.

Using this approach, the bank makes a couple of statements; one about the depth ofproducts that will help solve problems and thus help people lead a more fulfilling life andthe second one about the fact that the bank has decided to take a leap from being a mereproduct to a solution provider.

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KOTAK MAHINDRA BANK

Faidey Ka Insurance

Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance), unveiled itsnew brand tagline Faidey Ka Insurance. The new positioning statement conveys, LifeInsurance with Investment Edge in a direct and concrete manner. The new tagline issupplemented by a novel advertising campaign, which conveys this shift in an innovativeand refreshing manner.

Today consumers seek beyond protection and endowment from their insurance plans. Inthis context, leveraging Kotaks core strength of investment expertise seemed a natural

extension for the brand. Hence the brand idea became Life Insurance with InvestmentEdge, expressed as Faidey ka Insurance. The new positioning is a reflection of KotakGroups extensive strength in the area of research and capital markets.

In todays insurance parlance, a child plan is synonymous with the parents expectationsfrom their child. Kotak Life Insurance through its television campaign designed by JWTand executed by SODA Films, attempts to break this mould. It gently suggests to parentsto refrain from forcing their expectations on their child but allow and enable thechildren to exercise their choices and do what they like to do. It also reminds the parentsthat, they should invest and plan so that they can provide maximum resources when theneed arises.

The campaign tries to reach out to its target audience through multiple mediums, such asTelevision, Out of Home Advertising, Radio and Internet. The television campaign kick-starts from 3rd December, while the Outdoor, Radio and Internet mediums will follow.The Outdoor campaign will be pan-India reaching out to consumers in the Top 8 metrosand other focus markets of Kotak Life Insurance in Gujarat, Punjab and the SouthernRegion.

References:-

Wikipedia www.statebankofindia .com

www.cygnusindia.com www.axisbank .com

www.wikinvest .com

in.reuters .com/finance

http://www.cygnusindia.com/http://www.wikinvest.com/http://www.wikinvest.com/http://www.cygnusindia.com/http://www.wikinvest.com/

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www.icicibank .com

www.kotak .com

www.bankofbaroda.com

http://www.kotak.com/http://www.kotak.com/http://www.bankofbaroda.com/http://www.kotak.com/http://www.bankofbaroda.com/