BANKING SECTOR

Presented By:- Kamal Kishor

Swati Priya Dhiraj Kumar

Dhirendra Pandey Koushik Dutta

Kunal Singh

An overview of the Banking Sector

• Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct.

• The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores.

• Credit growth in Indian banks grew 1.2% as of September 2012

• Deposits were up by 3.7% according to data released by RBI in FY2012.

Opportunities in Banking sector

• Mortgages to cross Rs 40 lakh crores by 2020

• Wealth Management to be a big business• Rapid growth of branches & ATMs• Mobile banking to see huge growth• Infrastructure financing to reach over Rs.

20 trillion on Commercial banks book by 2020

• New Models to serve the Small & Medium Enterprises (SME)

Key Challenges in Banking Sector

• Introduction of Basel 3 Norms• Intensifying Competition• Increasing NPA• Licensing Requirement• Managing Human Resources

Major Players in Banking Sector

• State Bank of India• HDFC• Axis Bank• Bank of India• Punjab National Bank• Bank of Baroda• ICICI Bank Ltd.• Union Bank of India• Canara Bank• Citibank

Trends in Banking Sector

• Banks have been focusing on secured lending products (such as mortgage and auto loans) for retail customers to drive credit off take.

• Policy uncertainty over the micro finance institutions and recent changes to banks credit off take to non banking.

• Pressure to meet targets under Financial Inclusion also increased the cost of lending and decreased returns on advances for banks.

• Pressure to meet targets under Financial Inclusion also increased the cost of lending and decreased returns on advances for banks.

• In the mid quarter review of the monetary policy, RBI cut the CRR by 25 basis points from 4.75% to 4.5 % (effective the fortnight beginning September 22,2012), to inject Rs.170 billion into the banking system.

THE MARKETING MIX OF THIS SECTOR

• PRODUCT• Core product The core product of banking basically comprises of

safekeeping of customers valuable. The main products of AXIS Bank are Saving Account,

Current Account and Demat Account. The other products are Home loan, personal loan, Insurance, Credit cards, etc.

Supplementary product e-broking, advisory function, trusteeship services, debt

solution, equity solution, selling gold bars 24 carats, mobile recharge, trading in currency future etc.

Facilitating supplementary services• Information• Order taking• Billing• PaymentEnhancing supplementary services• Safekeeping

PRICE Inspite of the constraints in the pricing policy due to

the RBI directives there are mainly three types of pricing methods adopted by HDFC banks. They are:

• Value pricing• Going rate pricing• Mark up pricing

Promotion• Name changed from UTI Bank to Axis bank creating

a global modern bank image• Tie up with dish TV• Television Advertisement• Print media• Publicity• Personal selling• Tele marketing

Physical Evidence• Bank Branch• Cheque book• Bank brochure• Statement of accounts• Logo• ATM• Financial Report • Tangibles (pens, writing pads, passbook, cheque book, credit card,

debit card, visa card)• Parking• Employee’s Uniform• Seats• Counters• Deposit and Withdraw Forms • Other papers (loan, insurance etc.)

PlaceSome of the important factors affecting the location analysis of a

bank are:• The trade area• Population characteristics• Commercial structure• Industrial structure• Banking structure• Proximity to other convenient outlets• Real estate rates• Proximity to public transportation• Drawing time• Location of competition• Visibility• Access

Process • Flow of activities• Standardization• Customization• No. of store• Simplicity

Service Quality Service Quality has an impact on customer

satisfaction, which in turn impacts customer’s loyalty.

• Reliability• Responsiveness• Assurance• Empathy• Tangibles