MARKET POTENTIAL OF STANDARD CHARTERED BANK

SAVING ACCOUNTS

Industry Guide – Mr. Nitish Dipankar

Faculty Guide – Ms. Pooja Singh

Submitted by –Amitabh Dixit

Roll No. 200501302PGDM

Amity Business School

ACKNOWLEDGEMENT

I express my sincere thanks to the management of Standard

Chartered Bank, Karol Bagh, New Delhi, for providing me an

opportunity to undergo summer training in their esteem

organization.

My success at Standard Chartered Bank was because of the

contribution and guide provided to me by the Bank itself.My

sincere acknowledgements are due to them.

I express my gratitude to Mr. Nitish Diapankar (Officer-

Wealth Management) for providing me necessary information

and guidance during my training period.The Project was

completed successfully with his valuable cooperation.

Last but not least I would like to thank all the respondents for

giving their precious time and relevant information and

experience, I required,without which the Project would have been

incomplete.

Amitabh Dixit

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SYNOPSIS

The central bank of India is the Reserve Bank: most large commercial banks were nationalized in 1969, with more being nationalized in 1980. The Department of Banking at the Ministry of Finance controls all banking. The State Bank of India, the largest commercial bank, handles some of the Reserve Bank’s roles. Cooperatives and credit societies are an important supplement to the private banking industry, especially in rural areas.

The Entry of Foreign Banks in the Early 1990’s has brought about a Revolution in the Banking industry. The superior service level of these Banks have forced even the Nationalized Banks to wake up to the reality that if they do not live up to the customers expectation they will soon cease to exist.

Indian Banking Industry, today is in the midst of an IT revolution. A combination of regulatory and competitive reasons have led to increasing importance of total banking automation in the Indian Banking Industry.

Earlier profitability gained only secondary importance, since banks lived in the comfort of a controlled environment. However, today banks cannot survive only with the Government support. They have to set goals of profitability along with service and set targets and evolve strategies to reach them.

There is certainly a paradigm shift in banking in India in the recent past. At present profitability, capital restructuring and transparency are considered important and significant for banks. Also, banks in India have started realizing the need to be ‘customer focused’ that in turn leads to ‘customer appreciation’,which is imperative for survival and growth.

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The first change along this line was brought in by the foreign banks with their emphasis on high quality and efficient service combined with technological advantages like satellite banking and tele-banking manned by skeletal staff and lesser number of branches.

Further, development of special manpower, innovative products, technology exploitation and personalized services play a crucial role on the banking industry today, since the customer has more options in choosing bank. Thus leading to consumerism in the banking sector. Also, since customers are becoming more sophisticated and educated, their expectation from the neighborhood bank is increasing.To sum, the new private sector banks are poised to redefine banking sector in India. Though they don’t pose a threat to the existing private banks they will certainly force them to gear up their strategies to remain in the field.

The last few years have seen a sea change in banking strategies, with more focus on quality. The adoption of a specialized customer-oriented focus is fast getting wider acceptability. In a market that keeps growing in depth and diversity, niche banking is new mantra adopted by all. Thus, instead of targeting an entire market segment, banks have adopted a specific business focus to reach their target audience.

Over the last few years, the communication style too has changed with respect to the banking industry. Communication has shifted from branding the bank to branding banking products, highlighting service commitments, convenience, etc. Further, branding of banking products such as home loans, consumer durable loans, tele banking, ATMs, net banking etc have started taking place, especially after the entry of foreign banks and private sector banks which had the advantage of the latest technology.

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Banks like Standard Chartered, ICICI, HDFC, and Citibank now bring your Bank Account and Credit card to your fingertips. With Mobile commerce, you can perform a wide range of query-based transactions from your Mobile Phone, without even making a call.

Standard Chartered Bank is the largest international banking group in India with an employee base of nearly 3500 people across the country. It has the largest branch network all over India (63 branches in 23 cities ) amongst all international banks in India. With over 2.3 million retail customers , and a credit card base of 1.3 million , the Bank is a leader in consumer Banking business.

The graph below shows the Market share of the Nationalized and Private Banks in India and the share of Standard Chartered Bank.

The Aim of Standard Chartered Bank is to increase it’s market share by capturing the customers of the Other Private Banks and the Nationalized Banks. The share can also be increased if the Bank is successful in convincing new people (children, students ,ect) to hold accounts with the Bank.

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SAVING ACCOUNT

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WHAT IS A SAVINGS ACCOUNT

An account primarily opened for & operated by individuals , wherein the number of transactions are few and which give the customer liquidity , with the facility to earn some interest on the residual balances.

Purpose and Description :

The savings accounts is a transaction account wherein a deposit is placed with the bank for an unspecified period of time.

The depositor can withdraw the money whenever required through any of the following means:

Withdrawl slip, cheques, transfer, through an ATM or Debit Card, standing instructions, remittances or by making purchases made on a linked Debit Card at merchant establishments.

Interest Paid :

Interest on the is determined in accordance with directives of the Reserve Bank of India.

Interest is calculated on the minimum credit balance between the close of the business on the 10 th. & the last day of each calendar month.

Interest is paid on quarterly rests.

Eligibility :

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Individuals

Trusts / Societies / Charitable Organisation

HUF’s ( for individuals for the sole purpose of savings & not for the purpose of business )

Resident Indians & Foreign Nationals.

Product Features :

Account can be in Sole name or joint names.

Average Quarterly Balance

Average quarterly balance of Rs.10,000 to be maintained.

Non - maintenance of AQB attracts a ledger fees of Rs.750/- per quarter.

Transaction oriented account : Mode of transaction through chequebooks, ATM Card or Debit Card.

Account can be operated at any of our branches across the country , 365 days a year from 10 A.M -7 P.M.

Account can be accessed through the internet.

Phone – Banking and Doorstep – Banking Services.Free Accidental Insurance from Royal Sundaram along with the account.

Facilities Available

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Statement of accounts at any desired frequency

■ Quarterly■ Monthly■ Weekly■ Daily■ Option of not availing the facility

Demand drafts / payorders at nominal charges

Local & outstation clearing

Standing instructions

To make regular recurring payments

Instant transfer of funds between an account in one branch & a self styled account in another

Power of attorney to operate the account can be given to the third party.

Stop payment of cheques.

Personalised cheque books & multicity cheque books.

The option of a picture or photo debit card along with an add – on card.

Issuance of traveller’s cheques

Special services like Banker’s Report , Signature Verification, Certificate of balance or interest foreign Inward Remittance Certificate available.

Minor Saving Account

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Account is opened in the name of minor .

Gaurdian has to be a co – holder.

Account clubbed with all the other accounts of the guardian for taxation purposes.

Converted to a normal saving account once the minor attains majority (18 years).

COMPANY PROFILE

A BRIEF HISTORY OF STANDARD CHARTERED BANK

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The Standard Chartered Group is an unusual banking business. Although its roots are clearly british its area of operations, its network and indeed its profits stream are overwhelmingly international.

The name Standard Chartered comes from the two original banks from which it was founded - The Chartered Bank of India, Australia and China, and The Standard Bank of British South Africa.

The Chartered Bank was founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853, while The Standard Bank was founded in the Cape Province of South Africa in 1862 by John Paterson. Both Companies were keen to capitalize on the huge expansion of trade and earn the handsome profits to be made from financing the movement of goods from Europe to Africa.

In those early years, both banks prospered Chartered opens its first branch in Bombay,Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. With the opening of sub Canal in 1869 and the extension of telegraph to China in 1871, Chartered was well placed to expand and develop its business.

Traditional business was in cotton from Bombay, indigo and tea from Calcutta, rice in Burma,sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama.

In South Africa, Standard, having established a considerable number of branches, was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johanesburg when gold was discovered there in 1885. The output of

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second largest gold field in the world passes through The Standard Bank on its way to London.

Both Banks at that time still quiet separate companies - survived the First World War and the Depression, but were directly affected by the wider conflict of the Second World War in terms of business and closure of branches.There were also longer term effects for both banks as countries in Asia and Africa gained their independence in the 50’s and 60’s.

Each had acquired along the way and spread their networks further. In 1969 the decision was made by Chartered and by Standard to undergo a friendly merger.They decided to counterbalance their network with expansion in Europe and United States.

Further expansion took place in Standard Chartered’s traditional markets in Asia and Africa. All appeared to be going well, when a hostile takeover bid was made for the group by Lloyds Bank of United Kingdom in 1986.

When the bid was defeated, Standard Chartered entered a period of change. Like many British banprovisions had to be made against third World debt exposure and against loan to Corporations & enterepreneures who could not meet their commitments.

Standard Chartered began a series of divestments notably in the United States & South Africa, & also entered into a number of asset sales.

In mid 1993, Sir Patrick Gillam became Chairman.He made it clear that Standard Chartered would grow & develop its strong franchises in Asia, Middle East & Africa using its operations in the United Kingdom and North America to provide customer with a bridge

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between these markets. Secondaly , it would focus on consumer , corporate and institutional banking , & on the provision of treasury services – area in which the Group had particular strength and expertise.

In August 2000 , the US $ 1.34 billion acquisition of Grindlays Bank was completed. This made Standard Chartered the leading international bank in India & the other countries of South Asia, strengthened the Group’s competitive position in the Middle East and brought to the Group a respected private banking business.

In September 2000 the Group agreed to acquire Chase’s Hong Kong consumer banking business for US $ 1.32 billion, which makes Standard Chartered the leader in Hong Kong cards. At that time it was also announced that Chartered Trust had been sold to Lloyds TSB for £627 millions.

Our Operation

Standard Chartered operates in every Asia Pacific market with the exception of North Korea & some 60% of the Group’s profits comes from the Asia Pacific region.

Hong Kong continues to be of major importance to the Group & contributes over 30% of total profit. With around 80 branches in Hong Kong & strong representation in China , standard Chartered – a note issuing bank in Hing Kong - is well placed to continue playing an important part in Greater China’s development . The Group’s business there is managed by a resident Group Executive Director.Consumer Banking , Corporate & Institutional Banking are managed out of Singapore each by Group Executive Director resident in the island state. Other East Asian countries of note for the Group are Malasiya

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, Thailand where , in 1999 , the bank acquired a 75% interest & management control of Bank Nakornthon & Taiwan.

Standard Chartered is the leading international bank in Sub-Saharan Africa , operating in several countries, the most prominent being Kenya ,Zambia ,Zimbabwe, Botswana & Ghana. The Group operations in the Gulf & South Asia are managed from Dubai.Consumer Banking - which has some 5 million customers – has grown significantly in recent years & contributes about 50% of total profits. Major initiatives support the rapid development of the credit card business in the exciting markets of India , Indonesia & Taiwan.

Corporate & Institutional Banking – its principal strengths are in supporting regional & international cross – border trade & investment. Products & services are focused primarily on these areas, notably trade banking , cash management & custody. Institutional Banking manages the Group’s relationship with the banks , investment companies & other financial institutions. It aims to be the ‘Banker’s Bank’ opertating in the customer’s time zones & providing network linkage between Internationl Markets. This business has continued to expand rapidly in Asia, Middle East, Africa & increasingly in Latin America. It was strengthened in March 1999 by the acquisition of the trade finance operation of UBS.

Treasury – operations are a particular Group strength with a network of over 20 dealing rooms worldwide , offering customer a 24 hour service. The bank is particularly well known for its expertise in exotic currencies & has reinforced its position as a leader in many Asian & African markets.

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DIFFERENT TYPES OF SAVING ACCOUNTS BEING OFFERED BY STANDARD CHARTERED BANK

aXcess Plus Saving Accounts

Super Value Savings Accounts

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Two – in – one aXcess Plus Account

Corporate Executive Account

aXcess Plus Saving Account‘‘The power of accessing your account . Anywhere , Anytime.’’

A power packed savings account , which is an innovative & convenient solution for all banking needs of the customer . It comes with a globally valid ATM – cum –debit – card , which allows one to access money from any bank’s ATM’s , that has a VISA ELECTRON sign. Thus, in addition to Standard Chartered bank ATM’s the customer has a power of accessing his account from the ATM’s of other banks as well . In addition , the Debit Card can even be used to make purchases anywhere in India & abroad from outlets that display the VISA ELECTRON sign , which includes over 25,000 outlets in India & over 10 million outlets worldwide . It is even accompanied by special offers & discounts that help the customer get more from his money.

Product : Entry level savings account.

Positioning : A savings account that gives the best access to your money.

Average Quarterly Balance : Rs 10,000

Key Features : Globally valid ATM-cum-Debit Card, free access to cash at different ATM’s.

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Target Customers : Customers starting their first

or second savings account, currently banking with PSU/ Pvt. Indian Banks.

Key Competition : HDFC Bank , ICICI Bank , Citibank Suvidha & HSBC.

Unilimited account access……

Free access to cash at over 2400 ATM’s in India.

Globally valid Visa Electron Debit Card

Access to Attractive Discounts and Privileges

Access to free insurance benefits : Lost Card Insurance , Purchase Protection and Personal Accident cover

Unparalleled Account Access…

Unparalleled Cash access

Free access to cash through over 2400 Visa Electron ATM’s in over 80 Cities in India

Access to over 6,50,000 ATM’s worldwide.

Shopping Convenience:

Purchase goods and services using money in your account

Accepted at over 25,000 merchant outlets in India

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Over 10 million merchant outlets globally

Use your card at any merchant that displays the Visa Electron sign.

Loaded with benefits:

Unique free insurance benefits.

Exiciting usage benefits:

Travel Cash back : Discounts on air fare

Rasoi : Ongoing privileges in restaurants

Fab-Deals : Special privileges for shopping

Discounts at all BPCL IN & OUT stores and special rates on BPL electronic items.

Host of other discount

ATM-cum-Debit Card

Product: Deposits access card which provides ATM access and purchase functionality at merchant outlets. The caption is “Buy-now-pay-now” product.

Positioning: Packaged into aXcess Plus savings account to provide unparalleled account access.

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Charges Associated:Annual charge of Rs 100Over and above four free transactions from a competitor bank ATM, a charge of Rs 50/transaction would be levied.

In case of non-maintenance of average quarterly balance in the account, every transaction from a different bank ATM would attract charges of Rs 50/ transaction.

Key Features: Visa Electron Card.

Key Competition: HDFC Bank, ICICI Bank, Citibank and HSBC.

Features:

Deposit access card : Provides access to the account through ATM’s and through purchase at merchant outlets.

Amount withdrawn or the purchase amount is directly debited to the account.Visa Electron franchise.

Globally valid card.

Accepted at over 25000 merchant outlets in India and at over 10 million outlets worldwide.Accepted at over 2400 ATM’s in India and at over 6,50,000 ATM’s worldwide.

Works as a fully functional ATM card at the bank’s own ATM’s.

Comes with a lost card insurance of Rs 50,000

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The goods purchased through the Debit card are automatically protected against theft or fire upto the limit of Rs 15,000.

Super Value Savings Account

A savings account where the Average Quarterly Balance to be maintained is Rs 50,000 and a whole lot of value added services are offered free of cost which otherwise would be charged in case of a normal aXcess plus savings account.

Product : Upgrade savings account.

Positioning : a savings account that gives you more value for your money.

Average quarterly balance : Rs 50,000

Key Features : Free debit card, basket of free services and discounts.

Target Customers : customers who wish to upgrade from a basic savings account and enjoy convenience banking.

Key Competition : Citibank and ABN-AMRO

KEY FEATURES

Free Debit Card.

Free Demand Drafts/ Pay Orders

Free ATM- cum-Debit Card

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Free cash delivery

Free Draft delivery

Free Payable at par cheques

Free FIRC’s

Free investment advisory services

Free standing instructions

Free remittances

All other features and benefits of the aXcess Plus saving account

Free accidental policy of Rs.2.5 Lakhs

KEY VALUE

Special pricing on lockers

Free monthly statement of accounts

Preferential rates on drafts drawn on other locations

Free cheque collection for cheques drawn at our branch locations

Free cheque stop payment facilities , free banker’s report , free signature verification

Free multicity cheque book

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STANDARD CHARTERED FOR NRI

NRI PRODUCTS

Opening of accounts in the name of Non Residents is subject to Exchange Control Regulations is subject to Exchange Control Regulations . However, authorized banks can freely open accounts in the name of Non Resident Indians. The operations in these accounts are subject to Exchange Control Regulations.

“ A non-resident Indian is an Indian citizen who is residing abroad for an indefinite period for the purpose of employment , business or other purposes.”

Non Resident Indians can open the following accounts:

1. Non Resident Ordinary Account (NRO)

This is like any other resident account, which is maintained in Indian Rupees. It can be opened as a savings or a current account, but the credits

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allowed into this account can only be in Indian Rupees (INR). Thus, the customer has the convenience of having an account to credit all his income earned out of investments in India. Be it income from rentals, dividends, proceeds of insurance policies or any other non – repatriable investments. He can also use this account for outgoing payments like monthly instalments . The interest earned on the funds in this account is repatriable.

2. Non Resident External Account (NRE)

This account is the best solution for NRI’s wanting to hold Rupee deposits as it offers a dual advantage. One they can freely access their funds in Rupees while in India and two, they can convert the same funds into foreign currency and repatriate it abroad any time they wish, this means that the interest along with the principle is fully repatriable. Only foreign currency credits are allowed in this account, which are converted into INR.

3. Foreign Currency Non Resident Account (FCNR)

This is opened only in four designated currencies and it is an excellent option for holding term deposits in foreign currency in India. The vital feature of this deposit is that the savings are protected against fluctuations in the interest rate. So the NRI can safely invest in US Dollar, Pound, Japanese Yen and Euro. The principle and the interest are completely repatriable.

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Multiple Delivery Channels

Today the technology driven banks are finding various means to reduce costs and reach out to as many customers as possible spread over a diverse area. This has led to using multiple channels of delivery of their products.

ATM (Automatic Teller Machine) :

An ATM is basically a machine that can deliver cash to the customers on demand after authentication. However, nowadays we have ATMs that are used to vend different FMCG products also. An ATM does the basic function of a bank’s branch, i.e., delivering money on demand. Hence setting of newer branches is not required thereby significantly lowering infrastructure costs.

Cost reduction is however possible only when these machines are used. In India, the average cash withdrawal per ATM per day has fallen from 100 last years to 70 this year. Though the number of ATMs has increased since last year, it is not in sync with the number of cards issued. Also,

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there are many dormant cardholders who do not use the ATMs and prefer the teller counters. In spite of these odds, Indian banks are increasing the number of ATMs at a feverish pace. These machines also hold the keys to future operational efficiency.

Net Banking:

Net banking means carrying out banking transactions via the Internet. Thus the need for a branch is completely eliminated by technology. Also this helps in serving the customer better and tailoring products better suited for the customer.

A customer can view his account details, transaction history, order drafts, electronically make payments, transfer funds, check his account position and electronically communicate with the bank through the Internet for which he may have wanted to visit the bank branch.Net banking helps a bank spread its reach to the entire world at a fraction of the cost.

Phone Banking:

This means carrying out of banking transaction through the telephone. A customer can call up the banks help line or phone banking number to conduct transactions like transfer of funds, making payments, checking of account balance, ordering cheques, etc. This also eliminates the customer of the need to visit the bank’s branch.

Mobile Banking:

Banks can now help a customer conduct certain transactions through the Mobile Phone with the help of technologies like WAP, SMS, etc. This helps a bank to combine the Internet

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and telephone and leverage it to cut costs and at the same time provide its customer the convenience.Thus it can be seen that tech savvy banks are tapping the entire above alternative channels to cut costs improve customer satisfaction.

The Importance of Choosing a Correct Distribution Channel

The promise of lower transaction costs, increased sales productivity, and more convenient service has lured banks into setting up new delivery channels. Earlier, vast brick and mortar branch network has been considered as an inherent advantage of established banks and new entrants were at huge disadvantage vis-à-vis the established players in terms of customer reach.

However, post 1990s new players are effectively taking on the branch network advantage of the established players by optimally leveraging technology and cost-effective delivery channels.

The foundation for creating such delivery channels is superior insights into customer behaviour. These can come in many forms, but at their most basic they entail understanding customer needs for the delivery of different products, how these needs vary by customer types (including small businesses), current customer behaviour (especially as it relates to channel usage), and customer profitability. It is this multifaceted understanding of customers that yields actionable implications for distribution strategy.

The steps to be followed in making a new distribution channel successful:

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Understand customers’ current channel/transaction behaviour.

Use sophisticated experimental customer research to assess the economic impact of tactics designed to change that behaviour

Design non-branch channels to emphasize personalized interaction to counteract decreased loyalty due to using artificial intelligence.

Situation in India

Turning our attention to delivery channels used by banks in India, in comparison with their international counterparts, it is observed that the banks are yet to exploit the delivery channels to the maximum extent technology permits.

Inspite of their advantages, reliance on technology based delivery channels often exacerbates traditional risks: operational risk (since it requires changes in procedures), reputational risk (if the bank fails to deliver secure, accurate and timely service) and legal risk (uncertainty about which legislation applies to e-banking transactions), besides emergence of other risks (business and credit risks).

ATMs still remain the most successful delivery channel followed by telephone banking and internet banking.

With about 9000 off-site and on-site ATMs installed, banks are effectively reaching out to a large customer base at a substantially lower cost. Typically, it costs close to Rs.50 per transaction if conducted in a branch and the same if done through ATM costs about Rs.15.

In order to reduce the cost of transaction banks have started out-sourcing and sharing of ATM services and this trend will

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gather momentum in near future. As this delivery channel gains mass acceptability and is user friendly, the bank can use it to cross-sell its as well as others’ products. For example, banks have already started dispensing railway tickets, movie tickets through their ATMs.

Internet Banking-an emerging delivery channel-offers significant cost advantage to banks. A net-based transaction costs the bank only around Rs. 4 and costs per transaction are even lower than those of an ATM, mainly due to savings on prohibitive real estate costs.Internet Banking has failed to take off due to a combination of psychological, legal, technological and socio-economic factors. Lack of critical mass of early adopters, lack of a strong trust environment, slowness in adoption of the internet, low penetration of PCs and access to internet are some of the impediments in the adoption of internet banking in India.

With drastic fall in cell phone tariff and emergence of seamless connectivity between fixed and mobile lines, mobile banking is set to emerge as one of the cost-effective delivery channels in near future.

Toll-free-numbers would also gain popularity as an important delivery channel. Although banks abroad are using call centre as a delivery channel for some time, banks in India have just begun to exploit it as an effective non-branch delivery channel.

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INTERNET BANKING

INTRODUCTION

The Internet banking is changing the banking industry and is having the major effects on banking relationships. Internet banking involves use of Internet for delivery of banking products & services. It falls into four main categories, from Level 1 - minimum functionality sites that offer only access to deposit account data - to Level 4 sites - highly sophisticated offerings enabling integrated sales of additional products and access to other financial services- such as investment and insurance.

DRIVERS OF CHANGE Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago.

The six primary drivers of Internet banking are: · Improve customer access· Facilitate the offering of more services· Increase customer loyalty· Attract new customers

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· Provide services offered by competitors· Reduce customer attrition

INDIAN BANKS ON WEB

The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over the Internet. The deregulation of the banking industry coupled with the emergence of new technologies, are enabling new competitors to enter the financial services market quickly and efficiently.

Throughout the country, the Internet Banking is in the nascent stage of development (only 50 banks are offering varied kind of Internet banking services).

1. In general, these Internet sites offer only the most basic services. 55% are so called 'entry level' sites, offering little more than company information and basic marketing materials. Only 8% offer 'advanced transactions' such as online funds transfer, transactions & cash management services.

2. Foreign & Private banks are much advanced in terms of the number of sites & their level of development. Some existing brick and mortar banks will go out of business. But that's because they fail to respond to the challenge of the Internet.The Internet and it's underlying technologies will change and transform not just banking, but all aspects of finance and commerce.

MAIN CONCERNS IN INTERNET BANKING In a survey conducted by the Online Banking Association, member institutions rated security as the most important

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issue of online banking. There is a dual requirement to protect customers' privacy and protect against fraud. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digital certification ensures that account information is protected from unauthorised access: Firewalls and filtering routers ensure that only the legitimate Internet users are allowed to access the system.

2· Encryption techniques used by the bank (including the sophisticated public key encryption) would ensure that privacy of data flowing between the browser and the Infinity system is protected.

3· Digital certification procedures provide the assurance that the data you receive is from the Infinity system.

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Strategic Alliances

A strategic alliance is a specific form of collaboration between two or more companies.  Strategic alliances with stronger partners can provide means of overcoming the problems of small size and lack of resources faced by some companies. 

The term "strategic alliance" can mean many things. In its broadest sense, it can apply to virtually any form of collaboration between two or more firms.

A strategic alliance might be entered into for a one-off activity, or it might focus on just one part of a business, or its objective might be new products jointly developed for a particular market.

Generally, each company involved in the strategic alliance will benefit by working together. The arrangement they enter into may not be as formal as a joint venture agreement. Alliances are usually consummated with a written contract, often with agreed termination points, and do not result in the creation of an independent business organisation.

Characteristics of a Strategic Alliance

Usually a non-equity, loosely structured relationship

Each partner retains its business independence

One Company will take a lead role in any contract or marketing and the others will be "partners" in the work.

The alliance can be struck between companies which would normally be considered competitors.

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The relative size of the partners is not a significant factor

Each partner must contribute distinctive "core strengths" eg technology, manufacturing capacity, access to distribution.

Four key benefits can be expected from a strategic alliance:

Increased leverage -  Strategic alliances allows the company to gain greater results from it’s core strengths.

Risk sharing - A strategic alliance with an international company will helps to offset market exposure and allows the company to jointly exploit new opportunities.

Opportunities for growth - Strategic alliances can create the means by which small companies can grow.  

Greater responsiveness - By allowing the company to focus on developing it’s core strengths, strategic alliances provide the ability to respond more quickly to change and opportunity.

Disadvantages of a Strategic Alliance

High commitment – time, money, people

Difficulty of identifying a compatible partner

Potential for conflict

Strategic priorities change over time

Political risk in the country where the strategic alliance is based

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If the relationship breaks down, the cost/ownership of market information, market intelligence and jointly developed products can be an issue.

Entering into a strategic alliance requires commitment above all else – in hours as much as in monetary terms. It also takes time to build a strong alliance. Identifying and reaching agreement with the right company can be very time consuming, and developing a strong relationship can take years. 

STRATEGIC ALLIANCES ENTERED BY STANDARD CHARTERED BANK

NATIONAL ATM ALLIANCES

The Institute for Development and Research in Banking Technology (IDRBT), a group established by the Reserve Bank of India (RBI) in 1996, has planned to set up a national switch to hook up all of the country's 10,000-odd ATMs.

The idea of establishing ATM interconnectivity through a national switch has been approved by the information chiefs of various Banks.The expected cost of transactions routed through the switch is to be under 10 rupees (21 cents U.S.) each, due to the high volumes of transactions -- almost 100,000 per day.

Cashnet

It is an Alliance between Citibank, Industrial Development Bank of India, Standard Chartered Bank and UTI Bank. This is the country's first independent shared ATM network.

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IDBI Bank received permission from the Reserve Bank (RBI) to serve as the network's settlement bank.Cashnet will give access to more than 1,300 ATMs for more than 6 million debit and credit cardholders of the member banks. The Alliance would constitute about a third of the total card base and 15 percent of the ATM base in the country.

Standard Chartered Bank and Bharat Petroleum corporation of India

Bharat Petroleum Corporation and Standard Chartered Bank have entered into an alliance to launch a globally valid co-branded debit card, Smartfill, in association with Visa International.Smartfill functions as a debit-cum-ATM card, providing customers online access to their accounts while they shop or withdraw cash. Smartfill allows customers to earn one reward point for every Rs125 spent on the debit card. It has a unique feature that all reward points earned, whether from buying fuel or from purchase of groceries, or from restaurant bills, shopping, and holiday and travel in India or overseas, can be accumulated and redeemed for free fuel at BPCL retail outlets.Further, customers will get a transaction fee waiver (normally 2.5 per cent) on purchase of fuel at over 225 designated Bharat Petroleum outlets in 10 cities across India. There are also discounts up to 5 per cent for purchases at In-and-Out department stores located at Bharat Petroleum's petrol stations.

Standard chartered Bank and Allianz Bajaj Life Insurance Company

The Standard Chartered Group has entered into an alliance with Allianz Bajaj Life Insurance Company to market and distribute the latter's insurance products.

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The partnership will allow branches of the Bank across the country to market and cross sell life insurance products

Standard Chartered bank and REDIFF.com

REDIFF.com India and Standard Chartered Bank have entered into an alliance to provide online and offline banking and related services to the Indian consumer.

The alliance will enable information on the entire range of the banks consumer banking products to be made available to the 6.4 million online customers of Rediff.com.

The services offered include detailed information on various deposits, loans and mortgages, credit cards, mutual funds and insurance products of the bank. Users will be able to directly interact with the bank and request for products online.

Standard Chartered Hutchison Max Telecom Pvt. Ltd

Available in two variant, Classic and Gold, the ‘Orange Standard Chartered Visa Credit Card’ offers a host of benefits to the cardholder.

The Card holder will be entitled to special benefits such as of STD/ISD deposit waiver, additional bonus and roaming points to use of Orange products and services. With this card the Orange subscriber also enjoy several offers such as shopping, travel discounts and all other benefits of standard chartered Card such as personal accident insurance, Global ATM Access and cash advancement facility.

Co-branded credit cards bring value to the customers as these not only provide the features of a regular credit card but provide a unique bundle benefits offered by the two organisations.

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Standard Chartered and Department of Post

Under the alliance, India Post will market credit cards and other consumer banking products of Standard Chartered Bank through Data Post. While the partnership will enable Standard Chartered to leverage the extensive national network of post offices to distribute and market its products, the post offices will also be the payment collection points for the bank's credit card customers. The bank will also utilise Speed Post extensively to send its credit cards to customers.

OBJECTIVES

Various Objectives for conducting the research and analysis are listed as under :

1. Access the Market Potential of Standard Chartered Bank Saving Account with the help of a survey conducted on a

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total of 155 Respondents (50-Standard Chartered Bank customers , 105-Other Banks customers)

2. Study how new distribution channels such as Internet Banking , ATM facility , Phone Banking have changed the face of the Banking industry.

3. Study the impact of a customer centric approach being followed by the Bank , and what is it’s benefit.

4. Compare the services offered by Standard Chartered Bank and the customers satisfaction level of the same with that of other Banks in the Private and Government sector , and to access where the Bank has to improve.

5. Consideration of various promotional and marketing and advertising strategies of Standard Chartered to the satisfaction among its ultimate users and consumers.

6. Finally to draw the various conclusion and recommendations on the basis of the study conducted on specifically taking to consideration the services, advertising and marketing strategies of the Bank.

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THE RESULTS OF A SURVEY WHICH WAS CONDUCTED ON 50 RESPONDENTS

HAVING SAVING ACCOUNTS IN STANDARD CHARTERED BANK IS AS FOLLOWED

DURATION WITH BANK

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The study of 50 Standard Chartered Bank respondents consisted of a majority of customers who had been with the Bank for a reasonable amount of time. This is good as these customers have had the opportunity to properly access the service level of the Bank, and can compare their experiences of Standard Chartered Bank with banks they have previously and are currently dealing with.

Out of the total respondents only 3% have been with the Bank for less than 6 months, the rest 97% have had the opportunity to know about the strengths and weaknesses of the Bank.

Another inference that we can draw from this study is that couple of years the Bank has been actively acquiring new customers as from the survey we can see that about 80% of the customers have opened their accounts during the past two years. The reason for this could be that during the past two years the Bank has been able to convince many prospective customers about the superior service it is able to offer in comparison to competing Banks. Another reason could be that the customer base of the Bank has increased due to sheer word of mouth of the Banks millions of satisfied customers.

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REASON FOR CHOOSING BANK

The Bank is always interested to know what was that one reason that prompted the customer to open an account with the Bank even though he is flooded with very attractive options from the competing Banks. If the Bank could get to know of that very compelling factor that convinced the customer to open the account then the Bank could use this in it’s favor to attract more customers.

From the study conducted the factor which has come out strongest in this regards is the “Other Reasons” getting 44% of the responses , going deeper into this response by asking the respondent what is the factor they include in this Other Reasons is that most people are not the deciding factor when they open a saving account, this is done so by their employers. The customer’s salary accounts are created by the companies in which they work.A very important inference that can be drawn from this is that Standard Chartered Bank should be active in maintaining close links with the corporate sector, this would help the Bank get very profitable Corporate Accounts in addition to the Saving Accounts..

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Closely following the “Other Reasons” option was that 34% of the respondents opened their account with the Bank because Standard Chartered Bank was Recommend by Family/Friends. This is a very important finding as the existing customers of the Bank have been recommending the Bank to their acquaintances after their good experiences with the Bank. But this could also turn as an disadvantage to the Bank as if there are some dissatisfied customer he might dissuade a prospective account holder, to deal with this problem the bank should keep up with it’s good service and continue to make it’s Account holders satisfied with it’s consistently good services and products it offers.Apart from this the Bank should target to increase the number of Accounts that are held by each family, the customer must be made aware of the benefits that could be acquired when he opens a account for his child. This would help increase the number of Account holders of the Bank.

The next important factor while choosing a Bank is the Distance the Bank is located from the Office/Residence of the Customer, 16% of the respondents felt this was the most important factor. This is an area of concern for the Bank as Standard Chartered Bank has only 13 Branches which are located in Delhi apart from this the All India figure for number of Branches of Standard Chartered Bank is 57. This figure is not very impressive when compared to Standard Chartered Banks rivals ICICI Bank and HDFC Bank which have a massive Delhi and All India branch presence.The Bank must increase their Branch Presence in Especially the Metro cities which the Bank is targeting. Apart from this an effort should be made to increase Branch presence in the potential profitable parts of the country. The forth most important factor which influences the customer to open an Account is the Reputation/Brand

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Name of Standard Chartered Bank., 6% of the respondents choose this option. Standard Chartered Bank is an Internationally Recognized Name when it comes to Banking, it has a very strong Reputation and has tremendous Goodwill in all sections of the society. The Bank should be careful that their Goodwill is maintained for the years to come, this would bring in much more business for the Bank..

The fifth factor which did not receive any responses was “Advertisement” The respondents did not feel that Advertisements prompted them to open accounts with the Bank. This does not undermine the importance of Advertisements when it comes to informing the customers of the new products and offerings the Bank is providing.In the later part of the study we do find out that the Bank should be active when it comes to communicating with the customers by way of Advertisement.

OTHER ACCOUNTS HELD

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Holding Multiple Saving Accounts is a very common practice today, it would be highly rare to find a person who holds only a single Account with a particular Bank. It is common for people to hold two or three accounts in their name. Multiple Accounts held by customers give them the opportunity to compare the services offered by different Banks.

In our study we found the Bank whose Account was held by most number of customers in addition to Standard Chartered Bank was ICICI Bank with 12 respondents this was followed by HDFC Bank.Banks like ICICI Bank and HDFC Bank pose a serious threat to Standard Chartered Bank when it comes to Saving Accounts simply for the reason that these Banks have been successful in creating a vast network of Branches and ATM all over the country.

In the Other Banks category it included Government and Private/Foreign Banks. In the Government Banks there were Bank of Baroda, Punjab National Bank, Central Bank of India. The Banks in the private sector included CITIBANK, ABN Amro,HSBC,etc.

The one Bank in the Government sector which got a reasonable number of responses was State Bank of India (SBI), SBI is the largest commercial Bank in India, it has the largest branch network amongst all Banks be it in the Public or Private sector. But due to little attention given on customer service as is the case with most public sector undertakings, it’s customers are shifting to Banks in Private Sector like Standard Chartered Bank.

MOST FREQUENT POINT OF INTERACTION WITH THE BANK

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The answer to the Question that what would be the point of interaction with a Bank would have a few years ago have been the Branch. But today this is not the obvious answer. The Account holders have the option to use the ATM machines to withdraw or deposit money, or do various other transactions, he could also use the facility of Phone Banking or Internet Banking from the comfort of his home or office. Apart from this some Banks Including Standard Chartered Bank are provided with facility of Door Step Banking where the customer can even deposit or withdraw cash without ever having to leave his home.

The Banks are very interested to know the most popular Point of Interaction with the Bank as if the Bank is lacking in one of these steps can be taken to make the situation better.

From the study we can see more than half (more than 50%) of the total respondents feel that they interact most with the Bank with the help of ATM. Banks prefer if it’s Account holders use the ATM machines to do transaction rather than coming to the Branch as the cost per transaction is lower when using the ATM machine than using the branch.Hence the importance of ATM cannot be overstated.

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Account holders of Standard Chartered Bank Saving Account having Visa Electron Debit Card can access other Banks ATM machines four times per month for free, after that the Account holder has to pay Rs. 50 per transaction. But holders of ATM cards cannot access machines belonging to other Banks.

The number of ATM machines installed by Standard Chartered Bank is 35 in Delhi and the All India tally is 246 machines. When this figure is compared to ICICI Bank which has thrice the number of machines in Delhi or HDFC Bank which has nearly twice the number of machines in Delhi, this is worrying for Standard Chartered Bank.Apart from the above two Banks State Bank of India, UTI Bank have a very intensive network of ATM machines all over the country.

The Second most popular point of interaction that arises from the study is the Branch with 32% of the respondents favoring this option. Standard Chartered Bank is unique in an aspect that it follows the “Any Branch Banking” wherein the Account holder can use any of the Banks 246 Branches all over the country.An aspect that customers really appreciate is the 24 hour Branches and the 365 Days Branches of Standard Chartered Bank. The 24 Hour Branch of Standard Chartered Bank is located at Inner Circle Connaught Place New Delhi apart from these Branches in Mumbai and other cities in India. Standard Chartered Bank is the only Bank which has the facility of a 24 Hour Branch. As for a 365 Day Branch the only Bank having this facility apart from Standard Chartered Bank is ABN Amro Bank.Standard Chartered Bank customers have the advantage of being able to do Cash Transactions from Non-Branch, this facility is provided by a select few Banks and popular

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Banks like ICICI Bank and HDFC Bank do not provide this service.

Standard Chartered Bank should open more Branches in Delhi as Branch Banking is the second most Frequent Point of Interaction. There is a need to increase it’s Branch presence in other Cities around India if Standard Chartered Bank wants to be known as a household name in the country.

The third most Frequent Point of Interaction is Phone Banking with 11.5% of the respondents favoring this medium. Phone Banking is one of the new age Banking techniques. It is in it’s infancy in India and people have not taken to it as is the case in other Developed Countries in the World.In the study it was seen that customers have mixed feeling when it comes to Phone Banking as sometimes they do not find it as an effective alternate to traditional forms of Banking.

The forth most Frequent Point of Interaction with the Bank is Internet Banking with 4% of the respondents favoring this medium. Internet Banking is the most modern means of Banking available to the customers but due to the general perception that this medium is not safe it is not used by many people.In our study only 60% of the total respondents have atleast once used Internet Banking.

The two option which were not favored by any respondents as the most Frequent Point of Interaction are Drop Box Facility and Door Step Banking..

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Accounts holders admit having used the Drop Box facility and find it quite a convenience but do not consider it as the most frequent point of interaction.

When it comes to Door Step Banking very few Account Holders admit having used the service. This is due to two reasons ,first, people don’t consider it as the most safe means of Banking and second, transactions done through this medium cost the customers.

TIMES ATM USED PER WEEK

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The study has confirmed the fact that ATM is a very popular means of Banking today , in fact it is the Most Frequent Point of Interaction with the Bank. Banks prefer the use of ATM as the cost per transaction is quite low as compared to Branch Banking.

Banks are always interested to know the frequency with which the ATM machines are used per month. From our study we infer that most Account holders (50% of the respondents) use the ATM Less than 2 times per week, this is followed by 40% of the respondents who use the facility between 2 to 4 times per week. Only 10% of the total respondents use the ATM facility more than 4 times per week.

This finding has an important implication, even though Standard Chartered Bank does not have a very large network of ATM machines and Account holders can access ATM machines of other Banks (4 free transactions only).Most Account holders would not face much problem as even if they are not able to find a Standard Chartered Bank ATM machine they can use other Bank ATM without fearing that they would have to pay Rs. 50 per transaction fee.

OVERALL SATISFACTION LEVEL

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Overall Satisfaction level of the customer is a very important parameter which is valued by all especially service providers like Banks. It includes everything and encompasses total experience of the Account holder with the Bank. It shows the general perception of the account holder. If people who have had experience in dealing with the Bank have a high Overall Satisfaction Level they would definitely Recommend the Bank to their Acquaintances.

Any service provider would want their customers to have a high Overall Satisfaction level. Standard Chartered Bank has scored very well in this regard.

The most important thing is that no respondent has complained that they are overall dissatisfied with the bank. This is a very important finding because this shows the effort Standard Chartered Bank puts in providing their customers a superior service has not gone waste.

More than half of the total respondents (52%) say that they are somewhat satisfied with the overall service of the Bank. About 30% of the total respondents say that they are Very Satisfied with their Overall Experience with the Bank.

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Hence about 82% of the Respondents are Satisfied with their Overall Experience with the Bank.

There is another category of Respondents (20% of total) who say that they are neither satisfied nor dissatisfied with their Overall Experience with the Bank. This is a worrying aspect and the Bank should pay more attention to these segment of Account holders.

The study is showing a very good Overall Satisfaction Level by the Account holders.

SATISFACTION LEVEL WITH NUMBER OF BRANCHES

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Standard Chartered Bank has 57 Branches all over India, and in Delhi alone it has 13 Branches. From the study we can see that about 40% of the total respondent have said that they are somewhat satisfied with the number of Branches of Standard Chartered Bank, and only 8% of the total respondents have said they are very satisfied with number of Branches.

There is a large portion of respondent (32%) who are neither satisfied nor dissatisfied with number of Standard Chartered Bank Branches whereas 10% of the respondents are somewhat dissatisfied.

A comparison of the different Banks with number of Branches each has is given below-

BANK NO. OF BRANCHES (INDIA)

NO. OF BRANCHES (DELHI)

Standard Chartered Bank

57 13

ICICI Bank 400 33HDFC Bank 201 19IDBI 65 9CITIBANK 126 9HSBC 28 3AMN Amro 9 3UTI 70 -GTB 91 5

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From the above table we can see that ICICI Bank is the clear winner when it comes to number of Branches in Delhi and on an All India basis, following it is HDFC Bank. CITIBANK is next when it comes to All India figure but it does not have many Branches in Delhi.If we look at the figures from strictly Delhi point of view then we can infer Standard Chartered Bank has put in a lot of effort on Delhi when number of Branches is concerned.. Nearly 23% of the total Branches of Standard Chartered Bank are located in Delhi. The corresponding figure for ICICI Bank is 8.25% , for HDFC Bank is 9.45% , CITIBANK is 7.14%.The reason for this may be the fact that Standard Chartered Bank is a Bank which wants to cater to niche customers who are willing to maintain a comparatively higher balance in their accounts as compared to account holders of other banks. Therefore Standard Chartered Bank is concentrating on Metro cities like Delhi.

The Breakup of number of Standard Chartered Bank Branches in various Metro cities of India are given below-

NAME OF CITY NO. OF BRANCHES

Delhi 13Mumbai 13Kolkota 14Chennai 5Bangalore 2

From the above we can see that Standard Chartered Bank is concentrating on Metro cities with 47 of it’s total 57 Branches located in these five cities, representing 82.4% of total Branches in Metro Cities.

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Standard Chartered Bank has a single Branch each in other cities like Kanpur, Amritsar, Chandigarh, Lucknow, Jaipur, Jalandhar, Ludhiana, Cochin, Secundrabad, Hyderabad, Coimbatore, Pune, Vadodara, Surat, Bhopal, Ahmedabad.

SATISFACTION LEVEL WITH NUMBER OF ATM MACHINES

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From the study we have already inferred that ATM is the most Frequent Point of Interaction with the Bank so it is very importances that we study the satisfaction level of the customer with the ATM services.

Satisfaction of account holders with ATM service did not just include the number of ATM machines located , closeness of machines to Home/Office of account Holder, But it also included whether the Account holders are satisfied with the performance of the machines, whether or not the Account holders had encountered any problems with the machines.

Before going into the analysis all the respondents who were questioned were of the view that ATM machines belonging to Standard Chartered Bank were very Technologically Advanced are were very satisfied with the performance and had not encountered many problems.

The account holders of Standard Chartered Bank were not very satisfied with the number of machines that were installed and this can be seen in the results of the survey.

More than half of the total respondents (52%) were Somewhat Dissatisfied with the number of ATM machines Installed by Standard Chartered Bank.While 12% of the respondents were Very Dissatisfied with the number of machines in the city.

Only 16% of the total number of respondents were Somewhat Satisfied and no one was Very Satisfied with number of ATM machines.

From the above results we can infer that there is an urgent need on part of the Bank to install more ATM machines. It is true that Standard Chartered Bank Access plus Account holders are entitled to four free transactions in non Standard Chartered Bank ATM machines , but there is no substitute for Bank’s own machines in the customers eyes.

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The Table below shows the number of ATM machines belonging to various Banks in Delhi and on an All India basis-

NAME OF BANK NUMBER OF ATM MACHINES (ALL INDIA BASIS)

NUMBER OF ATM MACHINES (DELHI)

Standard Chartered Bank

246 35

ICICI Bank 560 112HDFC Bank 625 66IDBI 350 43CITIBANK 160 22HSBC 103 21AMN Amro 40 13UTI 507 -GTB 250 20

From the above table we can clearly see that HDFC Bank is the Bank which has highest number of ATM machines on All India basis, this is followed by ICICI Bank , then UTI.

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When we look at the concentration of machines in the Delhi Region we see that out of ICICI Bank’s 560 Machines 112 are located in Delhi representing 20%.The corresponding figure for Standard Chartered Bank is 14.2% . HDFC Bank is 11.8% , IDBI Bank is 12.3% , CITIBANK is 13.75%.

From the above we can infer that with the exception of ICICI Bank , Standard Chartered Bank has higher proportion of it’s ATM machines in Delhi Region when compared with other Banks.

SATISFACTION LEVEL WITH BANKING HOURS (10 am to 7 pm)

From the study of Standard Chartered Bank Account holders we have been able to infer that Branch Banking is the second most Frequent Point of Interaction with the Bank. The Average Banking Hours is a very important aspect

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associated with any Bank. In todays fast paced life where people who hold Accounts with the Bank are busy working it is important that they can find a way to visit the Bank without having to miss out on work.

The Average Banking Hours of Standard Chartered Bank is from 10am to 7pm , the Bank is open to the public for nine hours. These timings are convenient for Especially those Account holders who are working, these people can visit the Bank after their Office finishes.

Apart from the Average Banking Hours Standard Chartered Bank offers to it’s Account holders 24 Hour Branch , 365 Days Branch and the facility of Sunday Banking.

Standard Chartered Bank is the only Bank which offers a 24 Hour Branch in India, this is a big boon for people who cannot take the time out to visit the Bank during the normal working hours and is also very handy during emergencies.

The 365 Day Branch of Standard Chartered Bank is also unique and the only other Bank offering this service is ABN Amro , this Branch is open regardless of the fact that it is a Sunday or a public holiday.

Sunday Banking is very useful for people who are busy throughout the week and the only day when they find the time is Sunday. Other Banks offering this service apart from Standard Chartered Bank are ABN Amro and CITIBANK.

From the analysis of the data that has been collected from Standard Chartered Bank Account holders we can see that majority of the respondents are satisfied with the Average Banking Hours.

The respondents who are Somewhat Satisfied with the Banking Hours consists of 44% of the total , while 28% of the total respondents studied say that they are Very

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Satisfied. In all 72% of the total respondents are Satisfied with the Banking Hours of Standard Chartered Bank.

The respondents who are Neither Satisfied nor Dissatisfied consist of 20% of total number studied , while 8% of the respondents are Somewhat Dissatisfied.

The table below shows a comparison of the Average Banking Hours of various competing Banks-

NAME OF BANK AVERAGE BANKING HOURS

Standard Chartered Bank

10am to 7pm

ICICI Bank 8am to 8pmHDFC Bank 9:30am to 3:30pmIDBI 10am to 4pmCITIBANK 10am to 2pmHSBC 9am to 4pmAMN Amro 10am to 7pmUTI 10am to 4pmGTB 9am to 5pm

From the above table we can infer that ICICI Bank has the highest Average Working Hours (12 Hours per Day) out of all the Banks. This timings are very convenient for Account holders who are working as this gives them an opportunity to visit the Branch before their office starts and after their office ends.

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Standard Chartered Bank and ABN Amro both have an Average Working Day of nine hours which is considered quite adequate for any service organization.The Account holders of Standard Chartered Bank consider the Average Working Hours Quite Adequate.

SATISFACTION LEVEL WITH PHONE BANKING

The concept of Banking by Phone is Quite new in India , but to it’s credit it has become Quite popular in a short span of time. This service is available to customers of all Private/Foreign Banks and some Indian Government Banks also provide their Account holder’s with this service.

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With the help of phone Banking Account holders are able to do a number of transactions without having to leave one’s home.

But despite these benefits that accrues from Phone Banking there is the aspect of impersonality that is associated with this medium. During the study we have seen that Account holders often complain that the Phone Banking Executives are not able to solve their problems effectively. There have been instances when Phone Banking Executives have behaved Rudely with the Account holders.

The Account holders feel that even though Phone Banking is useful in certain situations but is not a very effective way to do Banking as there is no face to face interaction. More than half of the respondents (52% of the total respondents) interviewed felt that they were Satisfied with the Phone Banking service offered by Standard Chartered Bank , while 28% of the total respondents felt that they were Neither Satisfied nor Dissatisfied with Phone Banking.

Out of the Account holders Satisfied with Phone Banking 40% were Somewhat Satisfied and 12% were Very Satisfied.

SATISFACTION LEVEL WITH INTERNET BANKING

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Internet Banking is the most technological advanced means to do Banking. Through this medium the Account holder can do various types of transactions without having to leave his Office/Residence.

The Account holder has the convienience to do transaction no matter where he is in the world at any time of the day. Internet is the most cost effective medium of Banking from the point of view of the Banks , it costs a fraction to the Bank as compared to other mediums like Branch Banking or ATM.

But this medium is not as favored a medium as it in the west , the reasons for this is that firstly , this is a relatively new concept in India , secondly , general perception that this is not safe , thirdly , computers and internet are not widely spread all over the country.

Not all customers of a Bank use Internet Banking facility even if it is provided by the Bank. In the study 40% of the respondents have ever had experience of using Internet Banking facility. The rest have never availed of this service.

The results showed that most standard Chartered Bank customers are not very happy with this facility. A vast

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proportion (65%) of the respondents who have had experience of using Internet Banking facility were Somewhat Dissatisfied by the facility offered by the Bank. The balance 35% of the respondents felt they were Somewhat Satisfied.

The worrying aspect is that no respondent was Very Satisfied with the service.

On further questioning of the dissatisfied respondents it was revealed that some people had faced difficulties in receiving the password from the Bank, hence spoilt their experience.Others felt that Internet was not an effective substitute for visiting the branch when some important transaction was needed to be done.

SATISFACTION LEVEL WITH BANK STAFF

Banks are institutions which are backed up by a large amount of capital , today’s Banks are spending a huge amount of money on technology , improvement in infrastructure , etc. But even today the most lasting impact about any Bank comes from the customers experience with the Bank Staff.

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Any paining experience can have a lasting impact on the mind of the customer , this can force him to change Banks or even discourage others from joining the Bank. Hence Banks should train their employees to maintain good relations and be cooperative with the customers.

From the results of the findings we can see that Standard Chartered Bank has been sucessful in maintaing a high level of customer satisfaction with the employees. Only 4% of the total respondents included in the study were Dissatisfied. The number of respondents who were Very Satisfied represented 30% of the total respondents while those who were Somewhat Satisfied were 46% of the total.The respondents who were Neither Satisfied nor Dissatisfied are 20% of the total.

SATISFACTION LEVEL WITH CORRESPONDENCE FROM BANK

REACHING IN TIME

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The Bank has to often communicate with the Account holders regarding many aspects like informing them of the balance in accounts , informing about new offers and products , delivering important passwords and personal identification numbers , etc.

The information that is sent to the Account holders through this medium is very important and if the Bank is not able to maintain a satisfactorily standard , it would adversely affect the image of the Bank in the minds of the customers.

The results from the study shows a worrying aspects , More than two-third of the total respondents (78%) were in someway or the other Dissatisfied with the Bank in regards to correspondence from Bank reaching in time. The percentage of respondents who were Very Dissatisfied were 34% of the total, and 44% of the respondents were Somewhat Dissatisfied.

The respondents who were Somewhat Satisfied were 22% of the total number of respondents.No one was Very Satisfied with this service.

IS MINIMUM BALANCE (RS. 10000) TOO HIGH ?

The Banks which operate in the Private Sector have not been able to gain such a foothold in the Market of Saving Accounts

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when compared to the Nationalized Banks because of a variety of reasons-

1. The Nationalized Banks have the Advantage of entering the Market Early – Hence they have more customers.

2. The Nationalized Banks have a Far Greater Branch Reach as compared to Private Sector Banks – who are mostly located in large cities.

3. The General perception in the mind of the average person that their money is safer in a Nationalized Bank as compared to a Private Sector Bank.

4. The Private Sector Bank insist on a Higher Minimum Balance to be maintained by it’s Account holders as compared to those required by Nationalized Bank Account holders.

Here we are going to Address this Very Important Question that whether the Minimum Average Quarterly Balance required to be maintained by Standard Chartered Bank Customers is limiting the Bank in attracting a larger segment of people to open accounts with the Bank.

The results of the study conducted on Standard Chartered Bank Account holders show that a vast majority of Account holders (82% of the total respondents) do not find the Minimum Average Quarterly Balance of RS.10000 high.The segment of Account holders finding the Average Quarterly Balance of RS. 10000 high constitutes of 18% of the total respondents.

Standard Chartered Bank is doing business on the premises of having Good Quality of depositors and are not going after

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Quantity. They believe it is better to do Business with one Good customer rather than serving ten small customers.

The table below shows a comparison of the Minimum Balances that are Required to be maintained by Customers of different competing Banks-

NAME OF BANK MINIMUM BALANCE

PENALTY FOR NON

MAINTENANCE OF MINIMUM

BALANCEStandard Chartered Bank INR. 10000 INR. 750 per

quarterICICI Bank INR. 5000 INR. 300 per

quarterHDFC Bank INR. 5000 INR. 150-500 per

monthCITIBANK INR. 10000 INR. 250 per monthHSBC INR. 10000 INR. 300 per

quarterABN Amro INR. 10000 INR. 200-1800 per

monthIDBI Bank INR. 5000 INR. 100 per

quarterUTI INR. 5000 INR. 200 per

quarterGTB INR. 5000 INR.150 per quarter

As that can be seen from the table above Standard Chartered Bank is one of the Banks with the Highest Average Minimum Balance required to be maintained by the Account holders, if this AQB is not maintained then RS. 750 per Quarter is deducted from the Account.

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We can see that all the Foreign banks operating in India require their customers to hold this Minimum Balance. Indian Banks like ICICI Bank , HDFC Bank , IDBI Bank require their customers to hold a comparatively lower Minimum Balance.

SHOULD BANK BE MORE AGGRESSIVE IN

ADVERTISING IT’S PRODUCTS ?

The importance of Advertisement today can never be over-estimated , it is common for service providers to advertise about themselves in different mediums like print , visual , vocal , etc. Banks are no different , they offer a variety of products to it’s customers and to keep people informed about them we see a variety of Bank Advertisement.

A few years ago when the Market was dominated by Nationalized Banks only there was very little scope for Advertisements as the Product that was being offered to the public was generally Homogeneous. There was Perfect Competition in the Market.

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But from the past few years with the entrance of Foreign Multinational Banks like Standard Chartered Bank and growth of Large Indian Private Sector Banks like ICICI Bank , HDFC Bank , etc the customers have got a lot of choice. Each of these Banks offer it’s customers Differentiated product . In a sense today the Market of Saving Account Exhibits some features of Monopolistic Competition .

In Addition to this Private Banks and Foreign Multinational banks keep aside huge Budgets for it’s Advertisement Expenditure. Standard Chartered Bank has got it’s products endorsed by celebrities and regularly sponsors many high profile events . Standard Chartered Bank was the principal sponsor of the recently concluded Standard Chartered Bank Mumbai Marathon.

In the Earlier part of the Study an attempt was made to understand the importance Advertisement Plays in convincing prospective customers to open Accounts with the Bank , the result said that Advertisement was not the compelling force which prompted the customer to open an Account With the Bank.

But now we trying to access if people think if Bank should be more proactive when it comes to Advertising it’s products. The results show that people want Banks to spend more money in Advertisement , this would help the Bank in informing the public about new products being offered by the Bank and also help the people to compare the Product offered by Standard Chartered Bank with those offered by other Banks.

More than two-thirds of the entire respondents (68%) studied felt that the Bank should be more Aggressive in Advertising the products it offers. One-Third (32%) of the respondents felt there was no need for the Bank to Advertise their products.

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WOULD CUSTOMER RECOMMEND THE BANK TO ACQUAINTANCES ?

Standard Chartered Bank like any other Bank is always on the lookout for people to open Accounts with the Bank , this would increase the deposit base of the Bank. The existing Account holders of the Bank can convince a lot of people they know to open Accounts with the Bank.

Account holders of the Bank can by their Word of Mouth publicity convince a lot of people to open Accounts with the Bank. In the earlier part of the study when the Reason for Opening A Saving Account with Standard Chartered Bank was studied “Recommended by Family/Friends” came out to be the second strongest reason. Hence now it is imperative

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to find out whether the Existing account holders of the Bank would Recommend the Bank to their Acquaintances.

The results are Quite encouraging for Standard Chartered Bank , About three- forth of the total respondents (74%) said they would Recommend the Bank to people they know , while 26% felt they would not recommend the Bank as they were not satisfied with the services offered by Standard Chartered Bank.

The above finding shows that most of the respondents are satisfied by the services offered by the Bank , but the Bank should improve their services especially for the segment representing one-third of the respondents so that they can also change their view regarding this subject.Having dissatisfied customers is very dangerous as there is always a Risk that these customers might shift to one of Standard Chartered Bank’s competitors , or they might discourage one of the prospective customer from opening an Account with the Bank.

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THE RESULTS OF A GENERAL SURVEY WHICH WAS CONDUCTED ON 105 RESPONDENTS BELONGING TO 10 DIFFERENT BANKS IS AS FOLLOWS

BANKS STUDIED

This study involved mainly Banks operating in the Private Sector , there are some Banks from the Public Sector but these are at a relatively lower proportion.

The Private Bank include both Indian and Foreign Banks , the Indian Banks included ICICI Bank , HDFC Bank While the Foreign Banks apart from Standard Chartered Bank studied included CITIBANK , HSBC , ABN Amro.

The Government Banks included most noticeably State Bank of India (India’s Oldest and largest commercial Bank) , Bank of Baroda , apart from other Banks.

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NAME OF BANK NUMBER OF RESPONDENTS

ICICI Bank 20

HDFC Bank 20CITIBANK 10ABN Amro 10HSBC 10IDBI 10State Bank of India 10Punjab National Bank 5Andhra Bank 5Bank of Baroda 5

TOTAL 105

ATM FACILITY PROVIDED BY BANK ?

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ATM Banking has today totally Revolutionized Banking in India , it has completely changed the image one used to associate with Banking at one time . The Account holders no longer have to wait in queues so that can Withdraw/Deposit their own money , today simply by inserting the Card in the machine the Account holder can do a variety of transactions any time , any place.

The respondents in the study included Account holders from both the Private and Government Banks , as far as the Private Banks are concerned 100% of the respondents were using the ATM facility provided by the Bank using either the ATM card or Debit Card.

But from the respondents in the Government sector Banks not all the Account holders were using the ATM facility. In some cases the respondents interested in the ATM facility but could not avail the service because the Government Banks had delayed the delivery of cards even after the Account holder had applied for the same. Other Account holders preferred the traditional method of Banking rather than this new medium .

Overall 86% of the total respondents studied use the ATM facility provided by the Bank , while 14% of the

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respondents did not use ATM facility. This entire 14% segment represented account holders from the Government Sector Banks.

ATM FACILITY USED PER WEEK

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As it has already being studied in the earlier part of the study specifically dealing with the Standard Chartered Bank Account holders , the per week ATM usage is studied to access what is the frequency with which ATM machines are used by Account holders of different Banks.

It has been observed that the ATM usage is directly proportional to the number of machines operated by the Bank. Account holders of Banks such as ICICI Bank , HDFC Bank which operate a very large number of ATM machines all over the country tend to use the ATM facility much more than their counterparts of other Banks.

Another Trend that has been observed is that when Branches of Banks are located far from the Residence/Office of the customers , the ATM usage in those cases is high.

An interesting fact is come out after the study regarding CITIBANK , this is one Bank which prides itself to be technology savvy and it encourages it’s Accounts holders to use ATM Facility , Phone Banking , Internet Banking , etc to do transactions. To discourage Branch Banking they are the only Bank in the country who charge their Account holder everytime they visit the Branch to do transaction.The number of ATM machines of CITIBANK are comparatively few (All India-126 , Delhi-9) ,still people use more of their ATM Facility.

Overall more than half of the total respondents studied (57%) use the ATM Facility less than two times per week , 29% of the respondents use the ATM Facility between two and four times per week and only 14% of the respondents use it more than four times per week.The results we have reached above is identical to ATM usage of Standard Chartered Bank Account holders who were studied earlier.

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MOST FREQUENT POINT OF INTERACTION WITH BANK

Banks in the Private and Government sector provide to their customers with different types of medium through which they can interact with the Bank.

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Private Sector Banks have been in the forefront of providing their customers with technologically advanced mediums like Internet Banking , Mobile Banking , ATM Facility , Phone Banking ,etc.

Government Banks have rather late realized that if they do not invest in these modern medium of Banking their deposit base would shrink. Now these Banks are investing heavily in installing ATM machines , they have set up call centers for Phone Banking, etc.State Bank of India is one such Bank which has one of the largest network of ATM machines all over the country.

Generally the study has concluded that for Private Sector Banks ATM has come out as the most frequent point of interaction with the Bank , But Branch Banking is more popular when Government Banks are concerned.

Phone Banking and Internet Banking are western concepts of Banking which have been popularized by Private Banks operating in India. The usage of these mediums are restricted to Private Banks. Government Banks are currently putting these mediums in place for it’s customers but it will be some time before Internet and Phone Banking will become popular for Government Bank Account holders.

Overall the medium which has come out as the most popular point of interaction with Banks is the ATM Facility with 42.85% of the respondents choosing this option.

Next most popular Point of Interaction with the Banks is Branch Banking with 30.47% of the respondents choosing this option. Phone Banking comes next with 19.05% of the respondents choosing this as the most frequent point of interaction.

Internet Banking is favored by 7.6% of the respondents as their favorite medium and Drop Box Facility is not

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considered by anyone as their most frequent point of interaction.

MOST IMPORTANT QUALITY IN A BANK

The next aspect that has been tried to be analysed is the most important quality a Bank should have in the minds of the account holders. It would help the Bank in improving it’s overall service levels in the future if the Banks knew what were the Qualty aspects which the Account holders valued the most.

The Four variables studied included the ATM service the Bank provides , level of Effiency that Banks exhibits , the general Decor/Ambience that the Bank Branches have , and Staff Courtesy.

If the service provider is able to know what is the most important of these above four important variables , it would help the Bank improve it’s service levels in the future. But this would be useful for the Bank only when the Bank is itself

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honest in admitting where they are not performing as well as they should be.

From the survey of more than hundred respondents belonging to different Banks we can to the conclusion that Efficient Service offered by Banks is considered most important by account holders , 62% of the respondents felt that the Bank should concentrate more on this service aspect. The above result shows an overwhelming majority of the respondents favoring this variable , and Banks should stress highly on providing Effficient Service to it’s customers.

The next aspect which is considered highly important by the Account holders of various Banks is the Staff of the Bank. It is true that today’s Banking far less of Branch Banking as it was the case a few years ago , today Account holders have a constant interaction with non-human interface like ATM machines , Internet Banking , Drop Box , Even Phone Banking when customers do not interact in a face to face manner with the Bank employees. But in the minds of the respondents it is very important that the Staff the Bank employs should be cooperative , courteous and qualified to solve the various problems of the Account holders. The percentage of respondents favoring Staff quality as most important was 26% of the entire sample size.

The most frequent point of interaction with the Bank is ATM facility, the Account holders whether in Private/Foreign sector or the Government sector have been provided with ATM facility by their respective Banks. To judge the performance level of any Bank today it is crucial that the ATM service of the Bank be studied, this includes not only the number of ATM machines installed by the Bank , but also how technologically advanced the machines are (number of transaction that can be done with the ATM Facility), the effort Bank undertakes to maintain the machines and also

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the overall experience of the Account holder with the service.The percentage of respondent considering the ATM service as most important were 12% of the total sample size.

With the advent of Private/Foreign Banks in the Indian Banking sector there is a marked effort been made to project Banks as thriving and prosperous organizations so that more and more clients can be convinced to do business with the Bank. For this a lot of effort is made by Banks to hose their Branch in high profile locations (famous shopping malls , business centers , etc.) these Branches are very well maintained and could be easily confused for some deluxe hotel reception area. Gone are the days of ill-maintained nationalized Bank Branches , even these Government Banks are making efforts to improve the image in the eyes of the public , and are running well-maintained Branches.But from the respondents who were questioned none of them said that the Décor/Ambience of the Bank Branch was most important. On further Questiomning it was revealed that they did want well-maintained Branches/Other Bank Interaction points but this was not the most important aspect.

FACTOR HAVING MOST BEARING ON CHOOSING A BANK

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All Banks are keen to find out that one reason that made a prospective client make up their mind to open an Account with the Bank, this is a very important aspect but the truth of the matter is that there is no single one reason which convinced the customer to open an account with the Bank , a variety of reasons in acting in tandem help a prospective customer make up his mind.

The most important factor according to responses that have been collected from account holders belonging to different Banks is the Reputation the Bank commands in the market. This reputation does not come overnight , service organization especially Banks have to work for decades before which they are able to earn the recognition and trust of the public. They have to do business Ethically and totally within the perview of law before which they can earn goodwill of the people. Any breach on part of the Bank might adversely affect the Banks Reputation beyond repair.Nearly half of the entire sample (45%) considered Reputation of the Bank as the key factor which helped them choose their Bank.

The next most important factor which helped the Account holders choose their respective Bank was Closeness of

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Branch/ATM from the Residence/Office of the customer. Convenience to transact is an important factor that comes to everyone’s mind when it comes Banking. If the Bank offers it’s Account holders many ATM machines to transact then this would definitely attract many people to open their accounts with the Bank. The distance of the Branch from the place of residence or office is always considered whenever a Bank is chosen.More than one-third of the total respondents (16%) considered this as the most important factor when choosing a Bank account.

The third highest individual factor which arose is the Rate of Interest that is being offered by the Bank, 3% of the total respondents choose this option.The above result may come as suprising , So on further questioning it was recvealed by the respondents that they do not consider Rate of Interest as an important factor in a Saving Account as there is constant stream of withdrawls and deposits in a saving account , so there is little chance of earning much interest on this account. But Rate of Interest offered Bank is extremely important when it comes to investing in other Bank products like Fixed Deposit Accounts (F.D. Accounts).

PRIVATE BANKS PROVIDE SUPERIOR SERVICES COMPARED TO GOVERNMENT

BANKS ?

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The general perception is that the service quality of Private Banks is superior to that offered by Government sector Banks , we wanted to study whether this is a true phenomenon or whether this was just hearsay.

The most important findings would come from the group of respondents who hold Saving Accounts with both Private and Government run Banks , as these people would be in the best position to judge the service offered by the Banks.According to this group of respondents the Range of Products that are offered by Private sector Banks are much more diverse than those offered by Government Banks.

Also these respondents felt that the Banks in the Private sector were much more flexible than their Government counterparts when dealing with customers were concerned.Private sector Banks are much more proactive when it comes to offering it’s customers new-age methods of Banking like ATM Facility , Internet Banking , Phone Banking, These services make the life of Account holders much easier.

Another major difference that comes to most of the respondents minds when comparing the Private and Government sector Banks is the Staff Attitude towards the customers. Sure Private sector Bank Account holders have had problems dealing with Bank Staff , But they still feel it is

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much better than how Government employees behave. These Government employees show as if they are doing a favoring on the customer when they do their job.Private sector Bank customers are offered many freebies and incentives to remain with the Bank , or try new products of the Bank. This is never the case with Government Banks.

Overall the result of this question very clearly states that people consider the service level of Private Banks much higher than Government Banks as 79% of the respondents agree and only 21% of the respondents disagree.

IS MONEY MORE SAFE IN A NATIONALIZED

BANK RATHER THAN A PRIVATE BANK ?

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The safety of Funds that are invested in a Bank is of primarily importance in every depositors mind. Ever since Private and Foreign Banks came on in the Indian scene there has lingered in the minds of potential depositors whether the money they invest in these Banks would be returned to them . This could have been the reason that even after providing much superior service as compared to Government Banks the deposit base of these banks have not reached their potential.

Hence to judge the Market Potential of Saving Accounts it was very important to access whether potential and current clients have the feeling that Private sector Banks are not as safe as their Government counterparts.

The results from the respondents Questioned is extremely promising as out of the total sample size only 7% felt that private Banks were not as safe as their Government counterparts.

The largest chunk of respondents were who said they Disagreed to the statement that Private Banks were not as safe as the Government Banks representing 46% of the

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respondents. Another 33% of the respondents felt that they Strongly Disagreed to the above and 20% of the respondents Neither Agreed nor Disagreed to the above statement.

From the above implication it is very clear that today the public has come to trust the Private sector Banks , this can also be seen from the fact that the deposit base of Private Banks is increasing at a higher pace than that of government Banks are rising.

DOES ADVERTISEMENTS HAVE BEARING ON CHOICE OF BANK ?

Advertisement has become an important means used to popularize the goods and services produced by different organizations. Banks are no exception to this , Banks often advertise in Newpapers , magazines , television , etc informing people regarding new products being introduced by them.

With the emergence of Private and Foreign Banks who aim to provide the customers with a differentiated product ,

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advertisement plays an important role in creating a image in the minds of the people of a highly differentiated product.These Banks keep aside a huge advertisement budget , And it is not uncommon for Celebrities from movies and sports industry to endorse the products being offered by the Banks.

It is important to know whether people feel that they get influenced by Advertisements , and if the answer is yes then it would be worthwhile for the Banks to invest more on advertisements.

The results from the study shows that according to people advertisement does have a bearing on choice of Bank , More than 69% of the respondents felt Advertisement is important while the balance 31% felt the opposite.

DO FREEBIES OFFERED BY THE BANK HAVE A BEARING ON THE CHOICE OF

BANK ?

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Apart from advertisements Banks often offer prospective customers offers and incentives to lure them to open accounts with the Bank. This freebies include free debit card , free insurance or some other of the Banks products. It is seen these incentives have some effect on convincing the customer to open an account with the Bank.

These offers and incentives help the Bank in offering a Differentiated product in a highly competitive market.

It is necessary to know whether these free incentives offered have a bearing on the choice of Bank. Out of the respondents questioned 59% of the respondents felt that these freebies does help them make up their mind regarding a certain Bank , while 41% of the respondents felt that these were not important.

Standard Chartered Bank

POSITIVE ASPECTS

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1. Debit card holders of Standard Chartered Bank Access

Plus Saving Account can use their card to transact from other Visa Electron machines four times free per month. This is a unique benefit which is available to Standard Chartered Bank customers. After the free transactions every time other machines are used RS. 50 is charged per transaction.This is over and above the Unlimited free use of Standard Chartered Bank machines the customer is entitled.

One more Bank which allows it’s customers two free use of other Bank machine is ABN Amro Bank. All other Banks charge their customers if they use other Bank machines.

Standard Chartered Bank has a network of 246 machines All over India and 35 in the Delhi Region alone. The corresponding figure for ABN Amro is 40 and 13 respectively.

In the study an attempt was made to find out how many times the ATM Facility was used by Account holders per week , the results showed that 50% of the respondents used the machine Less than two times per week and 40% used the Facility between two and four times per week.

From the above we can infer that on the basis of ATM usage rate Standard Chartered Bank Account holders would not get in a position that they might have to pay the transactional fee of using other Bank machines.

2. Average Banking hours (10am to 7pm) of Standard Chartered Bank is nine hours per day. This is very good when compared to other Banks.

Only ICICI Bank has better working hours (8am to 8pm) , But it does not offer it’s customers 24 Hour Branch and

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365 Day Branch as is the case with Standard Chartered Bank.

Standard Chartered Bank is the only Bank in the country offering a 24 Hour Branch. At this Branch account holders can do their Banking transactions at any time. This is one of the many firsts which Standard Chartered Bank is associated.

Apart from Standard Chartered Bank , ABN Amro Bank is the only Bank which offers a 365 Day Branch.

Sunday Banking is allowed at Standard Chartered Bank , this is a unique feature as established Banks like ICICI Bank and HDFC Banks do not provide these services.

The Account holders are very satisfied with these facilities offered by Standard Chartered Bank.

3. The Maximum Withdrawal Limit from a Standard Chartered Bank ATM machine per day is RS. 25000. By allowing it’s customers access to this amount of their cash Standard Chartered Bank is allowing lot of Convenience to it’s customers. It frees the customers of the worry that if there is an emergency , he will not fall short of cash.The ATM facility users at the Bank are very satisfied by this service.

The above limit for ICICI Bank and HDFC Bank is RS.15000 , which is far less than Standard Chartered Bank’s limit.

4. Standard Chartered Bank offers it’s customers the facility of cash transaction from non-branch , this is also one of the unique facilities offered by the Bank. Established players like ICICI Bank and HDFC Bank does not provide this service.

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The Account holders of the Bank find the above extremely useful.

5. Standard Chartered Bank offers to it’s Account holders to Link Their saving account with other Standard Chartered Bank products like credit cards, etc. The customers of the Bank find this facility very useful as it frees them of the worry of having to make individual payments , and having to remember due dates.Another very useful service offered to the Account holders is the automatic payment of Utility Bills(electricity, water, phones payments).

CONCLUSION

1. Standard Chartered Bank is a Leading Bank in the country , it provides a variety of products and services to different segments of customers.

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2. The Bank aims to serve customers from teenagers to senior citizens , hence different products designed to suit specific requirements of the above.

3. Aims to serve all classes of the society from the salaried middle class to the high income business class.

Customers are categorized and segmented according to their requirements and needs. For Example , the Axcess Plus Saving Account aims to serve middle class customers so minimum balance required to be maintained is RS. 10000. While the Super Value Saving Account is targeted at high income customers, the minimum balance requirement is RS. 50000.

4. Customers who are more profitable to the Bank (High Value Customers) are provided special facilities. Priority Banking is meant to serve these high value customers.

5. The Bank prides itself with the ability to provide differentative products in the crowed market of saving accounts. Bank offers free insurance , special co-branded debit cards (Smartfill Debit Card) which makes it’s product unique.

6. The Bank is also involved in marketing activities which serves as a medium of advertisement for the Bank. These are as follows:

Extended happy hours at certain pubs in Delhi for the Bank’s account holders.

Gift Vouchers on making utility payments , such as cell phones , electricity and MTNL bills.

Free Gifts like T-shirts/watches to it’s customers.

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Free add-on cards for relatives.

7. The Bank wants it’s customers to transact more through Internet Banking and ATM , Rather than the customers using the branch.

8. The Credit/Debit Cards provided by the Bank are Internationally Accepted around the world , Hence giving the customers the convenience to transact anytime , anywhere.

9. The Bank has tied up with other Banks so that it’s customers can use other Bank’s ATM facility for free (four free transactions)

10.The Bank also provides DEMAT account and also sells Mutual Funds , this provides the Bank and Government additional revenue.

11. The Bank has been very successful in enlarging it’s customer base during the last couple of years.

12. The Number One Reason of people choosing Standard Chartered Bank is the Brand Name/Reputation of the Bank.Hence it should be careful that the Brand name and Goodwill the Bank has earned is not diluted.

13. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank.

14. ATM Facility is most popular way to transact with the Bank.

15.Overall the customers appreciate the service and products offered by the Bank and are willing to

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recommend the Bank to their acquaintances , But more attention has to paid towards:

Increasing the number of ATM machines. Improving Internet Banking Facility. Correspondence from Bank reaching in time. Employee Courtesy.

16. Advertisements do play a role in attracting prospective customers to the Bank.

GENERAL FINDINGS

1. ATM Facility is more widely used by customers belonging to Private/Foreign Banks as compared to Government Banks.

2. Customers value Efficient Service over every other aspect , this is far more important than the number of ATM machines , Staff , Décor of Bank.

3. Reputation of Bank is most important when it comes to choosing especially a Private Bank.

4. The general perception is that Private Banks provide better services as compared to a Government Bank.

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5. People realize that Private Banks are as safe as compared

to Government Banks.

6. Advertisements and Freebies can be used to attract more customers.

SUGGESTIONS

The “SUVIDHA” Account that is offered by CITIBANK has become very popular in Banglore , But the biggest competition to Standard Chartered Bank especially in Delhi and Mumbai are ICICI Bank and HDFC Bank. To gain a foothold in these lucrative markets Standard Chartered Bank should:

1. The Number one complaint of Standard Chartered Bank customers is the limited number of ATM machines (Delhi-35 All India-246) that the Bank operates. Since ATM is the most popular point of interaction with the Bank it is imperative that the Bank increases the number of ATM machines.

Standard Chartered Bank must enter into alliances with other Banks , so that it’s customers can use those Bank’s ATM facility free of any charge.

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2. The Bank should upgrade the ATM machines with video

conferencing facility , this would help the Bank project the ATM machine as a mini-branch.

3. The Bank should take advantage of it’s world wide network of ATM machines , as more and more Indians are travelling abroad. The advantages of being able to access one’s account anywhere in the world must be highlighted.

4. The Bank should reduce the Transaction cost of Non-Standard Chartered Bank ATM machines.

5. Account holders of Standard Chartered Bank often have experienced that there is a delay on the part of the Bank to dispatch correspondence meant for the Account holder.

More than four-fifth of the respondents were Dissatisfied to a certain extent because of delay for important correspondence in reaching the customer in time.

6. Account holders who have applied for Internet Banking complain that there is a delay in the password reaching them , hence causing inconvenience. Also there have been occasions when Debit Card has reached but PIN which comes separately has not reached.

7. Apart from this account holders have been frustrated because of delay in the Statement of Account reaching them.

8. Overall the Account holders who have availed the Phone Banking service are quite satisfied with the service , they feel it is a useful and convenient facility. But some respondents felt that it would be better if the Phone Banking executives were more sensitive to the needs of the customers , and made effort that the problem is solved without the Account holder requiring to call again.

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9. Set up a dedicated call center for Debit card holders on

the same lines of the Global Consumer Bank Division for Credit Cards.

10. Account holders feel that it would be good if the Bank offered incentives, freebies to it’s existing customers , this would keep the customers happy and satisfied with the Bank. Account holders feel that the Bank is quick to give offers to it’s customers only when it feels that customer is going to stop doing business with the Bank.

11. Another overwhelming Demand of the Account holders of the Bank is that they should receiving free monthly statement of account from the Bank instead of the current quarterly statement.

The account holders of ICICI Bank and HDFC Bank get Free monthly statements and the customers feel that there is no reason why Standard Chartered Bank should not provide them with the same.

12. Door Step Banking is a medium of Banking for the future, Standard Chartered Bank is again been in the forefront of offering new and innovative facilities to it’s customers.

Leading Banks such as ICICI and HDFC are yet to provide this service to it’s customers.The Bank should put in extra effort to popularize this service.

13.The Bank should launch schemes whereby people are encouraged to open accounts for their children , also special incentives and offers should be given for students to open accounts with the Bank.

This would help increase the deposit base of the bank.

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14. Try to convince companies to open Corporate Accounts

with the Bank.

15. The Bank should extend the service of dropping important documents to all it’s customers. This facility should not be restricted to the high value customers.

16. It was observed that during the Branch visits there was insufficient or waning management support , this aspect needs to be looked into

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THE SURVEY OF CUSTOMERS OF TEN DIFFERENT BANKS REVEALED CERTAIN

INFORMATION REGARDING SERVICE QUALITY OF THESE BANKS

ICICI Bank

ATM Facility:

The ATM Facility provided by the Bank is extemely good, the network of ATM machines spread all over the country is extremely intensive. The machines of the Bank are good and generally the users do not face many problems with the machines.One problem associated with the machine is that their screens are not too large and can seem cluttered to some users, Also there is difference in the machines which are located in cities and those located on highways.

Employees:

ICICI Bank Employees can be at best be catergorized as Average. Some respondents holding accounts with ICICI Bank feel that the Employees are moody , so sometimes routine work is delayed because of the employees.There are some respondents who felt that some of ICICI Bank employees lack the basic product knowledge of ICICI Bank.

Phone Banking

The Phone Banking Facility provided by the Bank is not considered very effective by the clients of ICICI Bank who participated in the study. Many of the respondents interviewed were not satisfied by the Phone Banking Facility.

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The Account holders at ICICI Bank felt that there was a time lag between when problem is reported at Phone Banking and when it is resolved.

Internet Banking

The Internet Banking Facility provided by ICICI Bank is well appreciated by the Account holders of the Bank. Though the facility is not very widely used by all of the Bank’s customers , but the people using the service find it very useful.

Positive Aspects

The customers find the Linking of Accounts of ICICI Bank with other products of the Bank like credit cards extremely useful as it frees the customers to worry constantly about paying different Bills at different times.

Web Enabled Accounts of ICICI Bank is well appreciated by it’s customers. With the help of this service it is possible to transfer money between different accounts (No Cheques needed and No Waiting period)

Negitive Aspects

Machines are not uniform.

HDFC Bank

ATM Facility

The HDFC Bank Account holders who were included in the study were extremely satisfied with the ATM Facility provided by the Bank. HDFC Bank has a extremely large number of ATM machines located All over India. The

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machines operated by the Bank are technologically advanced and a large number of transactions can be carried out on the machines.

Employees

The HDFC Bank clients who were interviewed are very satisfied with the Employees of the Bank. They felt that the Employees are courteous when dealing with the customers. The Employees are efficient when dealing with a variety of complicated transactions.

Phone Banking

The HDFC Bank Phone Banking is considered extremely useful by many of the Banks account holders. The respondents have had good experience with the Phone Banking facility of the Bank. They are impressed in the way the Phone Banking executives quickly and efficiently solve the Account holders requests and queries.

Internet Banking

The respondents who have accounts with the Bank and regularly use the Internet Banking facility find the service up to their expectations. The facility is very good and useful for the customers.

Positive Aspects

HDFC Bank is a Leader and other Banks in the Banking industry follow it. The Bank has a Technological Edge when it is compared to it’s competitors.

The Account holders of HDFC Bank feel very impressed by the Customer Service of the Bank.

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The Bank has a Good Range of Products which it offers to it’s customers and it has a Good variety of products.

CITIBANK

ATM Facility

There are not many ATM machines of CITIBANK located in different parts of the country. In total the Bank operates 160 ATM macchines in India , and the Delhi figure is 22. This is one aspect where CITIBANK is lacking. The respondents in general find the ATM machines installed by the Bank Technologically advanced and these are capable of carrying out a variety of transactions. In general the respondents have not faced any problems in operating the machines.

Employees

When the respondents who have had experience in dealing with CITIBANK were questioned about the employees an suprising fact came out. CITIBANK clients were not satisfied by the staff of the Bank , some respondents felt that CITIBANK employees had a definite attitude problem when dealing with customers.

Phone Banking and Internet Banking

The customers of CITIBANK included in the study found the Phone Banking and Internet Banking Facility offered by CITIBANK highly useful. Majority of the customers were highly satisfied with these facilities.Through Internet Banking the Account holders in CITIBANK could do all transactions while sitting at home , they could get cheque books , demand drafts while sitting at home with the help of these service.

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These mediums of Banking are encouraged to be used as CITIBANK wants to minimize Branch Banking.

Positive Aspects

CITIBANK Saving Account holders were satisfied by the “SUVIDHA Account” of CITIBANK , the Account holders felt that this Account offered them a variety of benefits and offers. It is an unique product in the market of saving accounts.

The Account holders of CITIBANK were satisfied by the Debit Card facility offered by the Bank , using this card the Account holder was able to receive good discounts at a number of outlets.

Another aspect that was liked about CITIBANK was the minimum balance which was required to be maintained the account holders (RS. 1000). This was unlike all other Private Banks operating in India which demanded a higher balnce to be maintained.

Negitive Aspects

Almost all the CITIBANK customers who were included in the study felt that the charge that was levied on them when they did Branch Banking was unreasonable , they felt that it was their right to visit the Branch to do transactions and they should not be charged for this.

Some customers of the Bank felt that as far as standardized services were concerned CITIBANK did a good job , But when customized services needed to be provided CITIBANK was not up to the mark.

HSBC Bank

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ATM Facility

The number of ATM machines operated by the Bank were far from satisfactory , the Bank operates 103 ATM All over India and it had 21 such machines located in Delhi.But despite small number of ATM machines the customers of HSBC were satisfied by the ATM service, they the machines technologically advanced and all transactions can be done through the machines.

Employees

The employees of HSBC Bank are Good , Helpful and Efficient from the past experience of the Account holders of the Bank. The Account holders of the bank feel that the employees of the Bank are Flexible when it came to be dealing with it’s customers. The employees are Efficient when it comes to dealing with customers Queries and Problems.

Phone Banking and Internet Banking

The Phone Banking and Internet Banking of HSBC Bank is Good, the customers of the Bank were quite satisfied by these services that were offered by the Bank. Since the Bank does not have many Branches (Delhi-3 , All India-28) these services helped the customers to do a number of transactions while sitting in their homes/ offices.

Positive Aspects

The Customers are very satisfied by the service level of the Bank. They felt that Banking with HSBC gave them Very Good Banking Experience.Also the Banking Service is Very Good.

ABN Amro Bank

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ATM Facility and Branches

ABN Amro Bank does not have many branches and ATM machines located all over India. The number of Branches that the Bank operates is 3 in Delhi and 9 All over India. The tally for the ATM machines is 13 and 40 respectively.The Account holders of ABN Amro Bank are satisfied with the ATM machines installed by the Bank. They have had a trouble free experience while dealing with the machines. The ATM machines are Technologically advanced and were well maintained.

Employees

The Employees of the Bank are Good, the Bank is kept Knowledgeable staff. They are helpful and are flexible, the staff is ready to work on oral requests and do not insist on unnecessary paper work which make the life of the customers much easier.

Positive Aspect

There is a strong focus of the Bank on the Customer Relationship Management Aspect.

IDBI Bank

ATM Facility

The number of ATM machines that have been installed by the Bank is 43 in Delhi and 350 All over India. This is not a very large number of machines.

Employees

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The Employees at IDBI Bank can be best described as Average. The front office of the Bank has young faces but in the back office has people with the old public sector Bank stubborn attitude.

Positive Aspect

IDBI Bank is a Extremely Techno savvy Bank , it is one of the only Banks in India which has the facility of locating a branch of IDBI Bank with the help of a cell phone.

State Bank of India

ATM Facility and Branch

Being the oldest and largest commercial bank operating in the country , SBI has the largest number of Branches in India. SBI Branches are located all over the country , be it a large metro city or the smallest village.SBI offers to it’s customers a very large number of ATM machines which are located extensively all over the country, it has the largest number of ATM machines out of every Bank.

Employees

When we talk about the employees of the Bank, SBI suffers from the same fate as that is suffered by most of the Government Banks. It’s employees are careless and indifferent , they lack proper training. The experience of most people with SBI employees is not too good.The CRM aspect is ignored to a great extent by the Bank.

Internet Banking

SBI has the facility of Internet Banking , but the service would require a little more time to pick up. More effort would

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be have to be taken by the Bank to improve and further popularize this service.

Phone Banking

The Phone Banking facility that has been offered by the Bank is not very effective in solving the problems of the customers satisfactorily. Several calls have to be made to Phone Banking for solving even routine problems and still there is no guarantee that the problem would be solved.

Positive Aspect

State Bank of India caters to all segments of the society.

Negative Aspects

There is a lot of Internal Politics and Beauaracracy in this organization. No effort is made on CRM Aspect of service.

Long time taken to receive ATM facility , even routine tasks take a long time.

Punjab National Bank

ATM Facility and Branches

The number of ATM machines that have been installed by the Bank is not too large, but the machines are good and in proper working condition. Since this is a relatively new service for the Bank , this would definitely improve in the future.

Employees

The Employees of the Bank can be described as Average. A lot of Experienced Staff has been lost due to V.R.S.

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Bank of Baroda

ATM Facility

There are very few ATM Branches that have been set up by the Bank.

Employees

The Employees of BOB can be described as Average , as is the case with most Government Banks.

Positive Aspects

Bank of Baroda is one of the Top 5 Nationalized Banks of India.

The minimum balance required to be maintained is RS. 1000.

It has a Forward Looking Approach. Bank of Baroda introduced the BOB Card (Credit Card) long before Private Sector banks introduced Credit Cards in India.

Andhra Bank

ATM Facility

The ATM Facility of the Bank is not very good, because of relatively few number of ATM machines.

Employees

The Employees of the Bank are good, they are efficient , caring and there is stress on CRM aspect.

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There is flexibility and personalized service is provided.

LIMITATIONS

While performing the analysis and research work and finally at the time of formation of this thesis report certain limitations were faced, which are mentioned as under:

1. Confidentiality as well as compliance issue: Not being an employee there were certain limitations, restrictions and compliances to the amount of information and data, which could be retrieved.

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2. Time Consideration: It takes a lot of time and effort to

collect sufficient and meaningful data in regards to the market of saving accounts. Since the Report was to be submitted within a period of two months , lack of time was always a problem.

3. Lack of primary data: A research study could have been conducted to gather employee and customer feedback on various matters like effectiveness of new marketing strategies and their impact on the consumption of various Standard Chartered Bank products such as personal loans, “add on” cards (Debit/Credit cards), online/net banking, phone banking as well as problems faced while visiting ATMs. This data would have made the report more interesting. Due to lack of time, much-planned visits to the companies' officials to collect relevant data could not be carried out in a systematic manner.

4. Lack of cooperation from the employees of the companies: During the visits to the branches of the bank, the senior officials and department heads of the bank were not very co-operative. They were engrossed in their work that they could hardly spare much time for detailed discussions.

5. Inability of the employees to provide past secondary data: Collection of the recent newsletters, brochures, in house journals, etc, of the bank were relevant to a little extent, as most of them were unavailable with the officials or the employees of the bank.

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BIBLOGRAPHY

There was immense need and flow of the information while conducting the analysis as well as while writing the thesis report, which was gathered through various sources mentioned below:

Internet

www. Standard Chartered Bank. comwww. Standard Chartered Bank .co.in www. Standard Chartered Bank .com www.indiainfoline.comwww.google.comwww.economictimes.com

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Various Magazines and Newspapers such as

A & MOutlookFinancial TimesThe Economic TimesThe Times of IndiaThe Hindustan Times

Reference Books-

Marketing Management – Philip KotlerMarketing Management- V S Ramaswamy & S NamakumaryMarketing Research- Harper W Boyd, Jr; Ralph Westfall; Stanley F.Stasch

Journals, Broachers and various other documents gathered and collected from bank and various other sources such as ATM centers and associates.

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APPENDEX

The Questionnaire used specifically for standard Chartered Bank Account holders is below.

The responses of 50 Account holders were taken using this Questionnaire.

QUESTIONNAIRE

NAMEADDRESS

AGE Below 25 years 25 to 40 35 to 50 50 to 60 Above 60 years

OCCUPATIONBusiness Professional Service student Others

ANNUAL INCOMELess than 1.5 lakhs 1.5 lakhs to 3 lakhs 3 lakhs to 5 lakhs Above 5 lakhs

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1) For how long have you held a saving account with the bank?

Less than 6 months 6 months to 1 year 1 to 2 years Over 2 years

What made you choose Standard Chartered Bank?

Recommended by family/friends

Brand Name/Reputation of Bank

Advertisement

Branch near Residence/Office

Other Reason (please specify)

In addition to the above account do you hold a saving account in some other bank? If yes please specify below.

What is your most frequent point of interaction with the bank?

Visit Branch ATM Phone Banking Drop Box Internet Banking

How many times a week do you use your ATM/Debit Card?

Less than 2 times a week 2 to 4 times a week More than 4 times a week

Rate your Satisfaction level on the following specific parameters regarding the services offered by Standard Chartered Bank.

Very Satisfied

Somewhat Satisfied

Neither Satisfied nor Dissatisfied

Somewhat Dissatisfied

Very Dissatisfied

Overall Satisfaction LevelNumber of BranchesNumber of ATM

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Banking Hours(Avg. 10am-7pm.)Phone BankingInternet BankingBank Staff(courteous, qualified)Efficiency in handling daily transactionStatements reach in time

In your opinion is the minimum balance(Rs. 10000) on the high side?

Yes No

Do you think the bank should communicate more by way of advertisements to convey to the customers regarding new products?

Yes No

Would you Recommend this bank to your acquaintances.

Yes No

Are there any suggestions which according to you will make the services of the bank better? If yes please specify in the space below.

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The Questionnaire below was used for Non-Standard Chartered Bank account holders.Responses of 105 Account holders were taken using this Questionnaire.

QUESTIONNAIRE

NAMEADDRESS

AGE Below 25 years 25 to 40 35 to 50 50 to 60 Above 60 years

OCCUPATIONBusiness Professional Service student Others

ANNUAL INCOMELess than 1.5 lakhs 1.5 lakhs to 3 lakhs 3 lakhs to 5 lakhs Above 5 lakhs

1) Do you hold a saving account?

Yes No

2) If yes in which banks.

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3) Out of the above accounts which do you use most frequently ?(please specify)

4) Apart from saving in a bank account where do you invest your money?

Land/Property Capital markets(shares,mutual funds,etc)

Jewellery

Others (please specify)

5) Do you get a ATM/debit card facility from your bank?

Yes No

6) How many times a week do you use your ATM/Debit Card?

Less than 2 times a week 2 to 4 times a week More than 4 times a week

7) What is your most frequent point of interaction with the bank?

Visit BranchATMPhone BankingDrop BoxInternet Banking

8) Rate your Satisfaction level on the following specific parameters regarding the services offered by the Bank.

Very Satisfied

Somewhat Satisfied

Neither Satisfied nor Dissatisfied

Somewhat Dissatisfied

Very Dissatisfied

Overall

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Satisfaction LevelNumber of BranchesNumber of ATMBanking HoursPhone BankingInternet BankingBank Staff(courteous, qualified)Efficiency in handling daily transactionStatements reach in time

Rank the following according to the importance you attach to the following parameters.

Efficient/Instantaneous service Friendly/Qualified staff

Number of ATM’s of bank

Décor/Atmosphere of bank

Which of the factor do you consider most important in your choice of bank?

Rate of interest offeredBranch near Residence/OfficeReputation of bank (good/efficient services offered)Others (kindly specify)

11) Do you believe that Private/Foreign banks provide superior services than Nationalized banks?

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Yes No

12) Do you agree with the view that your money would be more safe in a Nationalized bank rather than a foreign bank.

Strongly AgreeAgreeNeither Agree Nor DisagreeDisagreeStrongly Disagree

13) Are you influenced by advertisements in your choice of bank?

Yes No

14) Do additional schemes/benefits (free insurance, free debit card, privileges/discounts on use of debit card, etc.) offered by banks have a bearing on your decision when you open a saving bank account?

Yes No

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