Submitted By
N.SUNILKUMAR
(Enroll No: 8NBBP013)
Mr.NARASAIAH
1. INTRODUCTION.
• Brief overview of research planned
• Nature of research
• Objectives
• Expected outcome/results
2. LITERATURE REVIEW
• Complete survey of previous work
• How guided in the present research
• The reliance, reliability and validity to the present study
• Identify gaps in the existing literature
• Justify how the present work adds value to the field of knowledge and
Research
3. PROGRESS REPORT
• Research work done
• Accomplishment of objectives till date
• Evaluation of research objectives
• Deviations/Gaps
• Mid course correction
4. REFERENCE.
• All references /Bibliography
• Should be in international standards
• Book references and web sites should be in Alphabetical order
ABOUT BANKING
Origin of Banking
Banks are among the main participants of the financial system in India. Banking offers
several facilities and opportunities. Banks in India were started on the British pattern in the
beginning of the 19thcentury. The first half of the 19thcentury, The East India Company
established 3 banks The Bank of Bengal, The Bank of Bombay and The Bank of Madras. These
three banks were known as Presidency Banks. In 1920 these three banks were amalgamated and
The Imperial Bank of India was formed. In those days, all the banks were joint stock banks and a
large number of them were small and weak.
At the time of the 2ndworld war about 1500 joint stock banks were operating in India out
of which 1400 were nonscheduled banks. Bad and dishonest management managed quiet a quiet
a few of them and there were a number of bank failures. Hence the government had to step in
and the Banking Company’s Act (subsequently named as the Banking Regulation Act) was
enacted which led to the elimination of the weak banks that were not in a position to fulfil the
various requirements of the Act. In order to strengthen their weak units and review public
confidence in the banking system, a new section 45 was enacted in the Banking Regulation Act
in the year 1960, empowering the Government of India to compulsory amalgamate weak units
with the stronger ones on the recommendation of the RBI. Today banks are broadly classified
into 2 groups namely— (a) Scheduled banks. (b) Non-Scheduled banks.
Retail banking is, however, quite broad in nature - it refers to the dealing of commercial
banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed,
current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing,
auto, and educational) on the assets side, are the more important of the products offered by
banks. Related ancillary services include credit cards, or depository services.
The issue of retail banking is extremely important and topical. Across the globe, retail
lending has been a spectacular innovation in the commercial banking sector in recent years. The
growth of retail lending, especially, in emerging economies, is attributable to the rapid advances
in information technology, the evolving macroeconomic environment, financial market reform,
and several micro-level demand and supply side factors.
India too experienced a surge in retail banking. There are various pointers towards this.
Retail loan is estimated to have accounted for nearly one-fifth of all bank credit. Housing sector
is experiencing a boom in its credit. The retail loan market has decisively got transformed from a
sellers’ market to a buyers’ market. All these emphasise the momentum that retail banking is
experiencing in the Indian economy in recent years.
Retail banking refers to provision of banking services to individuals and small business
where the financial institutions are dealing with large number of low value transactions. This is
in contrast to wholesale banking where the customers are large, often multinational companies,
governments and government enterprise, and the financial institution deal in small numbers of
high value transactions.
The concept is not new to banks but is now viewed as an important and attractive market
segment that offers opportunities for growth and profits. Today’s retail banking sector is
characterized by three basic characteristics:
OBJECTIVES
• To study on the Impact of the Banking Crisis and the Flight to Quality
banks in general.
“Retail banking is typical mass-market banking where individual customers use local
branches of larger commercial banks. Services offered include: savings and checking accounts,
mortgages, personal loans, debit cards, credit cards, and so”
The Retail Banking environment today is changing fast .The changing customer
demographics demands to create a differentiated application based on scalable technology,
improved service and banking convenience. Higher penetration of technology and increase in
global literacy levels has set up the expectations of the customer higher than never before.
Increasing use of modern technology has further enhanced reach and accessibility.
The market today gives us a challenge to provide multiple and innovative contemporary
services to the customer through a consolidated window as so to ensure that the bank’s customer
gets “Uniformity and Consistency” of service delivery across time and at every touch point
across all channels. The pace of innovation is accelerating and security threat has become prime
of all electronic transactions. High cost structure rendering mass-market servicing is
prohibitively expensive.
Present day tech-savvy bankers are now more looking at reduction in their operating
costs by adopting scalable and secure technology thereby reducing the response time to their
customers so as to improve their client base and economies of scale.
The solution lies to market demands and challenges lies in innovation of new offering with
minimum dependence on branches ' a multi-channel bank and to eliminate the disadvantage of an
inadequate branch network. Generation of leads to cross sell and creating additional revenues
with outmost customer satisfaction has become focal point worldwide for the success of a Bank.
RESEARCH OBJECTIVE
Top of mind awareness of consumers for banks offering various retail
products.
Factors influencing their purchase decision.
To study the comparative influence of various mediums of advertisements
in creating awareness amongst the consumers.
To find the immediate competitors in the minds of consumer for every
retail product.
RESEARCH METHODOLOGY
An exploratory research was conducted in order the study the consumer perception about
various banks offering retail products and the banks they opt for.
Sample Size
A random sample of 100 were administered with the questionnaire and responses
collected.
Research Area
The research was carried out at Hyderabad.
Respondents’ profile
Data was collected from respondents across all age and income groups. Data relating to age
was collected. This segmentation helped us to gain insights into the perception and preferences
across all age groups. Based on the nature of retail banking products age groups were identified
and classified as follows:
Age Profile
Majority of the respondents
15%
17%
18-25 yrs
belonged to the age group of 25 –
25-40 yrs
40 years.
23% 40-55 yrs
Income Profile
Respondents earning Rs.
13% 15% Non- earning 8000-15000 constitute the major
<5000
15%
5000-8000
30%
8000-15000 chunk of the respondents using
>15000
27% retail product.
This income group qualifies almost all eligibility criteria of retail offerings.
Proffessional Profile
9 7
Retail products being also
Students
Salaried designed for students and retired
Businessmen
15
Retired people, they were considered for the
29
survey.
Description: The annual growth in bank credit to the commercial sector is at 25.4% as on March
31, 2007 and was lower than 27.2% against previous year. Till 2010, retail banking is expected
to grow at a CAGR of 28% to touch a figure of INR9,700 billion. This requires expansion and
diversification of retail product portfolio, better penetration and faster service mechanism.
The report on Retail Banking Industry in India covers industry segments like housing
loan, auto loan, personal loan, education loan, consumer durable loan, credit card and regulatory
frame work for retail banks is also discussed. The report gives retail banking industry’s current
performance and future outlook. Total 22 major retail banks in India are covered in terms of their
performance, strategy and outlook.
Description: Indian Retail Banking continues to redefine the credit growth in the country. It grew
by a whopping 44.4% in 2005-06 to touch Rs3,538 billion. This leap was despite the increase in
risk weight by RBI for housing and real estate loans during August, 2005. Housing, which
constitutes more than 52% of all retail loans, grew at a robust rate of 44.35% during 2005-06. In
order to help banks in India to understand the market and competition and plan future strategies,
we have just come out with an Industry Insight on Indian Retail banking – 2006 edition. This
report analyses the retail banking market and its segments in India and presents the key trends,
along with issues and challenges. The report also paints a future outlook for the market. Besides
it profiles 21 major players in the retail banking space and their strategies. This report will be of
immense use to all banks in India to review and formulate their strategies in the retail space. It
primarily covers analysis of the present status, current trends, major issues & challenges in the
growth of the retail banking sector.
• During 2006-07, gross credit extended by Indian commercial banks grew by 34.83% to
touch INR19, 495 billion.
• Retail credit constitutes about 25% of the total credit and has grown by 28.0% to INR4,
218.3 Billion
• The annual growth in bank credit to the commercial sector is at 25.4% as on March 31,
2007 and was lower than 27.2% against previous year.
• Till 2010, retail banking is expected to grow at a CAGR of 28% to touch a figure of
INR9, 700 billion
Key Findings of the Report
• Pension fund industry in India grew at a CAGR of 122.44% from 1999-00 to 2006-07.
• In terms of ownership, debit cards are more in number than credit cards but in terms of
transactions, use of credit cards is more prevalent than debit cards.
• The ATM outlets in India increased at a rate of 28.09% from March 2006 to March 2007.
• Outstanding Education loan segment is expected to grow at 36.41% till March 2009 from
March 2007 onwards to cross Rs. 27000 Crore Mark.
• Two-wheeler finance industry is projected to forge ahead at a CAGR of 14.21% till 2009-
10 from 2005-06.
• Indian Mutual Fund industry witnessed a growth of 49.88% from May 2006 to May
2007, and a higher 215.61% growth was recorded in closed ended schemes.
• Increasing number of millionaires in India is increasing the scope of Wealth Management
Services.
• Bankable households in India are estimated to move up at a CAGR of 28.10% during
2007-2011
This study would enrich my knowledge to look into the modalities of operations of
Key products analyzed in this report include:
Housing finance
Auto finance
educational Loan
Banc assurance.
These are the some of the expected outcomes out of these over-all research programs i
Background:
Our perception is an approximation of reality. Our brain attempts to make sense out of the
stimuli to which we are exposed. This works well when we are about to perceive familiar facts.
However, our perception is sometimes “off” when we are not clear about concepts. Perception is
a process by which an individual select, organize & Interpret stimuli in a meaningful picture of
the world Also, we can describe as “how we see the world around us” Perception is the process
of selecting, organizing, & Interpreting or attaching meaning to events happening in environment
Perception is one of the objects studied by the science of consumer behaviour. Analyzing
the works of scientists studying consumer behaviour, it is possible to make a conclusion that
perception is presented as one of personal factors, determining consumer behaviour. Personal
factors mean the closest environment of a human, including everything what is inside the person,
his head and soul, characterizing him as a personality. Using his sensory receptors and being
influenced by external factors, the person receives information, accepts and adapts it, forms his
personal attitude, opinion, and motive, which can be defined as factors that will influence his
further activity and behaviour. Perception within this context is considered as one of the
principal personal factors, conditioning the nature and direction of remaining variables.
Customer Perception
These characteristics of service also make service unique and different from goods as
Described below
1. Intangibility. Unlike manufactured goods that are tangible, a service is intangible. The
Products from service are purely a performance. The consumer cannot see, taste, smell, hear, feel
or touch the product before it purchased
2. Heterogeneity. A service is difficult to produce consistently and exactly over time. Service
performance varies from producer to producer, from customer to customer, and from time to
time. This characteristic of service makes it difficult to standardize the quality of the service
Inseparability. In service industries, usually the producer performs the service at the time the
consumption of the service takes place. Therefore, it is difficult for the producer to hide mistakes
or quality shortfalls of the service. In comparison the goods producers, have a buffer between
production and customers’ consumption
4. Perishability. Unlike manufactured goods, services cannot be stored for later consumption.
This makes it impossible to have a quality check before the producers send it to the customers.
The service providers then only have one path, to provide service right the first time and every
time.
5. Non-returnable. A service is not returnable, unlike products. On the other hand, in many
services, customers maybe fully refunded if the service is not satisfactory.
6. Needs-match uncertainty. Service attributes are more uncertain than the product. This
Yield to higher variance of making a match between perceived needs and service is greater than
perceived need and product match.
7. Interpersonal. Service tends to be more interpersonal than products. For example, compare
buying a vacuum cleaner to contracting for the cleaning of a carpet. While customers will judge
the quality of the vacuum cleaner by how clean the carpet is, customers will tend to judge the
quality of the carpet cleaning service on both the appearance of the carpet and the attitude of the
technician.
8. Personal. Customers often view services to be more personal than products. For example, a
customer may perceive the service of her car (balancing the tires) as more personal than
purchasing new tires. If the same customer has problems later with the tires, the defect in the
tires would be less personal than if the tires were never balanced.
9. Psychic. Even though the food at a restaurant might not be as delicious as other famous
restaurants., the customers will recognize the restaurant and tend to be satisfactions if the service
of the restaurant is excellent. Another example is when a flight is delayed, and people tend to be
upset with this poor service . However, if the gate agent is very helpful and friendly, people tend
to still be pleased with the service (Groth, & Dye,1999). Like other industries, banking and
financial services companies have reached the conclusion that the relationship with the customer
should not (metaphorically and literally) end at the bank door. Customer access after the
transaction adds value to the transaction.
Features of Banking:
1. Dealing in Money:
The banks accept deposits from the public and advancing them as loans to the needy people. The
deposits may be of different types- Current, Fixed, Savings, etc. accounts. The deposits are
accepted on various terms and conditions.
2. Deposits must be withdrawable:
The deposits (other than fixed deposits) made by the public can be withdrawable by cheques,
draft or otherwise, i.e., the bank issue and pay cheque. The deposits are usually withdrawable on
demand.
3. Dealing with Credit:
The banks are the institutions that can create Credit i.e., creation of additional money for lending.
Thus, ‘Creation of Credit’ is the unique feature of banking.
4. Commercial in Nature:
Since all the banking functions are carried on with the aim of making profit, it is regarded as a
commercial institution.
5. Nature of Agent:
Besides the basic functions of accepting deposit and lending money as loans, banks possess the
character of an agent because of its various agency services.
Banking operations are becoming increasingly customer dictated. The demand for
'banking super malls' offering one-stop integrated financial services is well on the rise. The
ability of banks to offer clients access to several markets for different classes of financial
instruments has become a valuable competitive edge. Convergence in the industry to cater to the
changing demographic expectations is now more than evident. Banc assurance and other forms
of cross selling and strategic alliances will soon alter the business dynamics of banks and fuel the
process of consolidation for increased scope of business and revenue. The thrust on farm sector,
health sector and services offers several investment linkages. In short, the domestic economy is
an increasing pie which offers extensive economies of scale that only large banks will be in a
position to tap. With the phenomenal increase in the country's population and the increased
demand for banking services; speed, service quality and customer satisfaction are going to be
key differentiators for each bank's future success. Thus it is imperative for banks to get useful
feedback on their actual response time and customer service quality aspects of retail banking,
which in turn will help them take positive steps to maintain a competitive edge. The working of
the customer's mind is a mystery which is difficult to solve and understanding the nuances of
what perception the customer has to attain satisfaction is, a challenging task.
This exercise in the context of the banking industry will give us an insight into the
parameters of customer satisfaction and their measurement. This vital information will help us to
build satisfaction amongst the customers and customer loyalty in the long run which is an
integral part of any business. The customer's requirements must be translated and quantified into
measurable targets. This provides an easy way to monitor improvements, and deciding upon the
attributes that need to be concentrated on in order to improve customer satisfaction. We can
recognize where we need to make changes to create improvements and determine if these
changes, after implemented, have led to increased customer satisfaction.
Objectives
• To evaluate the different factors considered by the investors while making investments.
• To study the services provided by Private Sector and Public Sector banks and the
performance of it.
• To analyze the service facilities those are being effectively utilized by thecustomers.
• To ascertain suggestions from the investors for further improvement of the institutions.
Methodology
The data required for this study has been collected from the primary sources. Initially a ‘Pilot
Study’ will be conducted for testing the questionnaires. The pilot survey will help in making
certain improvement in the final questionnaire. A structured questionnaire shall then be prepared
for the respondents in order to collect primary data. The questionnaire is designed based on the
objectives.
Source of Data
The researcher proposed to gather the required data through primary data and secondary data.
Primary data are those which are collected afresh and for the first time, and thus happen to be
original in character. It will be collected through questionnaires method. Secondary data is
collected from the possible records like books, magazines, periodicals and websites.
Universe
The proposed study is to find out the services rendered by the Public and Private Sector Banks to
their Customers. The population is uncountable and is considered as infinite. However, the
proposed sample for the study from Private Sector Banks and Public Sector Banks are 300
respectively.
Sampling Method
The universe of the study is the account holders of Public and Private Sector banks and the
sampling technique adopted will be convenient sampling method.
Statistical Tools and Techniques
The collected data have been analyzed with the help of tools like Gap Analysis and Factor
Analysis
• It is concluded that the respondents’ expectation are significantly more than they
derive on the various aspects relating to facilities in SBI.
• It is concluded that the respondents’ expectation are significantly more than they
derive on the various aspects of Indian Overseas bank.
• It is concluded that the respondents’ expectation are significantly more than they
derive on the various aspects of Indian bank.
• It is concluded that the respondents’ expectation are significantly more than they
derive on the various aspects relating to facilities in ICICI bank.
• It is concluded that the respondents’ expectation are significantly more than they
derive on the various aspects relating to facilities in HDFC bank.
• It is concluded that the respondents’ expectation are significantly more than they
derive on the various aspects relating to various facilities in Indusind bank.
• The following suggestions are the outcome of the research and applications of these
Every bank should take precautions to keep customers experience safe. It should take
continued efforts to safeguard online banking transactions.
• All internet banks should provide close interaction between bank service and web
based e-commerce and even service through direct electronic payments.
• The bank should provide more convenient international transactions which means
internet along with general trends.
• Elimination of geographical boundaries will help free access of internet banking.
• The bank should provide more customer awareness and need of transparency in
their dealings.
• All banks should provide digital certification procedure as it helps the customers
data that they receive from the correct system.
• The banks should come up with innovative ways of service at their door steps this may be
a costly affair but will surely give positive results in the long run.
• The banks should take the initiative of training the advisors about the new schemes from
time to time which also makes the advisors connected to the bank.
• The banks should also emphasis on the monitoring of EMI which directly relates
to the returns of a loan amount. The company should come up with proper fixed
deposit plans at this point of time where the market is highly volatile and the
investors become very cautious at this level.
• The banks should use brand ambassadors for example the CEO’s of major
Companies where the company allocate the funds. This will probably ensure
proper results.
• The banks should focus on the advertising strategy and also the marketing of the
bank product.
• The bank doesn’t have enough tax saving plans or appropriate plans for tax so
which they should come up with.
PROGRESS REPORT:
Indian retail banking sector which mainly depends upon transactions directly with
consumers savings and lending, registered a decline in share of 5.02 per cent during the first
quarter of FY ’10 as compared to the corresponding period last year as per analyses of thirty
public or private Indian banks by the Assocham Financial Pulse.
The Retail Banking in India covers segments like current account, saving account,
housing loan, auto loan, personal loan, education loan, consumer durable loan, credit card and
debit card etc. The share of retail banking in total income stood at 41.06 per cent during Q1 FY
’10 and was lower than the share of 46.08 per cent in the corresponding period last year. The
total income of banking sector increased about 24.3 per cent during Q1 FY ’10, whereas the
income from retail banking registered a growth of 6.03 per cent during the period.
Due to the global meltdown, Indian government took major steps in monitory policy and
cut the banking interest rate for lending like housing and auto loans which impacted the revenue
of Indian retail banking segment. Other reason behind the decline in retail revenue may be due to
higher collateral charged by the banks for retail loans.The analyses of fifteen private and fifteen
public banks show that the private banks are performing better than the public banks in terms of
their revenue from retail segment. The private and public banks have registered about 54.27 per
cent and 35.47 per cent share in retail banking during Q1 FY ’10 respectively.
In the context of banking sector, the public sector banks registered a growth of 28.96 per
cent in total income and 9.92 per cent in retail banking during the first quarter of FY ’10. While
the share of retail banking in public banks declined 6.14 per cent during the period from 41.61
per cent in Q1 FY ’09 to 35.47 per cent in Q1 FY ’10. However the private banks registered only
13.52 per cent growth in total income during the period and show a minimal decline of 0.16 per
cent in retail banking. The share of retail banking in private banks declined by 7.44 percentage
points during the period from 61.71 per cent in Q1 FY ’09 to 54.27 per cent in Q1 FY ’10.
Public Bank :
• The analyses of fifteen public banks shows that State Bank of Hyderabad recorded a
major share in retail banking segment from its total income about 81.84 per cent followed
by Andhra Bank with 42.14 per cent, State Bank of India with 39.81 per cent and Indian
Bank with 38.01 per cent.
• State Bank of Hyderabad registered a major share in retail banking from its total income
during Q1 FY ‘10. The total income of the bank stood at Rs. 1724.41 crore during the
period, out of which Rs. 1448.94 crore came from the retail banking. The bank has
involved about 81.84 per cent in retail banking segment during Q1 FY ’10 registered a
minimal decline in share of 2.03 per cent from the last year same period.
• Andhra Bank registered about 42.14 per cent share in retail banking from its total income
during the Q1 FY ’10. The total income of the bank during the period stood at Rs.
1742.70 crore and the revenue from retail banking was Rs. 734.44 crore, the bank
registered 1.17 per cent decline in share of retail banking as compared to the last year
same period.
• The major wholesale and retail banking operator, State Bank of India (SBI) shows 39.81
per cent share in the retail banking segment from its total income during Q1 FY ’10. The
bank registered a major decline in share of retail segment about 6.23 per cent as
compared to the same period last year. The total income of the bank during the period
stood at Rs. 21041.51 crore and the revenue from retail banking was about Rs. 8377.09
crore.
• Indian Bank had a 38.01 per cent share in retail banking from its total income during Q1
FY ’10. The total income of the bank during the period stood at Rs. 2230.39 crore and
revenue from retail banking was Rs. 847.84 crore. The bank registered a minimal decline
of 0.98 per cent in share as compared to the last year same period.
• Other banks which present major share in retail banking segment from their total income
were UCO Bank (37.42 per cent), Central Bank of India (34.45 per cent), Canara Bank
(33.42 per cent) and Union bank of India (31.36 per cent).
• The banks which registered decline in share of retail banking during Q1 FY ’10 as
compared to the same period last year were Oriental Bank of commerce (33.96 per cent),
Allahabad Bank (10.54 per cent), Corporation Bank (7.81 per cent), Bank of India (7.71
per cent), Indian Overseas Bank (6.64 per cent) and Bank of Baroda (5.88 per cent).
Private Bank :
• In the context of fifteen private banks, Ing Vysya Bank Limited shows a major share
(80.20 per cent) of retail banking in its total income, followed by Kotak Mahindra Bank
Limited (75.36 per cent), HDFC Bank of India (74.82 per cent) and ICICI Bank Limited
(53.52 per cent).
• Ing Vysya Bank Limited recorded a major share in retail banking from its total income
during Q1 FY ‘10. The total income of the bank stood at Rs. 742.55 crore during the
period, out of which Rs. 595.73 crore came from the retail banking. The bank earned
about 80.2 per cent revenue from retail banking segment during Q1 FY ’10 however
registered a minimal decline in share of 2.22 per cent from the last year same period.
• Kotak Mahindra Bank Limited had a share of 75.36 per cent of retail banking in its total
income during the Q1 FY ’10. The total income of the bank during the period stood at
Rs.894.23 crore and the revenue from retail banking was Rs. 673.91 crore, the bank
Registered 3.52 per cent decline in share of retail banking as compared to the same
period last year.
• HDFC bank recorded about 74.82 per cent share in retail banking from its total income
during the Q1 FY ’10. The total income of the bank during the period stood at Rs.
5126.75 crore and the revenue from retail banking was Rs. 3843.34 crore, the bank
registered 2.83 per cent decline in share of retail banking as compared to the same period
last year.The major private bank which involved in wholesale and retail banking
operations, State
• ICICI Bank Limited shows 53.52 per cent share in the retail banking segment from its
total income during Q1 FY ’10. The bank registered a major decline in share of retail
segment about 10.936 per cent as compared to the last year same period. The total
income of thebank during the period stood at Rs. 9223.32 crore and the revenue comes
from retail banking was about Rs. 4936.18 crore. Development Credit Bank Limited
recorded 52.26 per cent share in retail banking from its total income during Q1 FY ’10.
The total income of the bank during the period stood at Rs. 147.08 crore and revenue
from retail banking was Rs. 76.85 crore, registering a 7.52 per cent growth in share as
compared to the same period last year.
• Other banks which recorded major share in retail banking segment from their total
income were Axis Bank (47.16 per cent), South Indian Bank (46.92 per cent), J&K Bank
(45.90 per cent), IDBI Bank (43.45 per cent) and The Bank of Rajasthan Limited (22.91
per cent). The banks which registered decline in share of retail banking during Q1 FY ’10
as compared to the same period last year were The Federal Bank Limited (20.07 per
cent), IndusInd Bank (16.22 per cent), Dhanalakshmi Bank (15.89 per cent) and
Karnataka Bank ( 13.29 per cent),
DATA ANALYSIS
INFLUENCING FACTORS
The respondents were asked
37
to rank the following factors
40 35
35
30 according to their preferences
25
%20 15
15
10 7 6
in the extent to which they
5
0 influence their purchase
Word of mouth
Goodwill
Advertisement
Processing
Interest rates
time
decision.
Factors
Majority of the respondents
considered processing time to
be the major influencing factor
for making purchase decision
while interest rate forms a close
second.
Time is the most valuable factor in today’s world of hectic schedules, that’s
the reason why processing time is considered as most valuable factor in consideration list.
Re ta il P ro d ucts Ava ile d
In our survey majority of the
Oth e r s
11%
Ho u s in g
lo an
respondents had availed
21%
cr e d it car d s Vehicle loan followed by credit
25%
cards.
V e h icle lo an
Pe r s o n al Ed u catio n 27% In our survey majority of the
lo an lo an
10% 6% respondents belong to the age
group of 25-40 and majority of
them are salaried people. This
is the stage where people try to
bring alive their aspirations of
having their own home and vehicle and hence these loan constitute major chunk of retail
product availed by the respondents.
Respondents were asked which banks they considered for purchasing a retail offering before
selecting a specific bank. The responses for different retail products were as follows-
OTHERS
Majority of the respondents
ICICI
11% 16%
considered CITI BANK for
STA N CHA RT
20%
credit cards followed by STAN
CITI BA NK CHART and HSBC.
35%
HSBC
18% Being the first bank to launch
credit cards and through
aggressive advertisements in the
past CITI BANK has created
awareness amongst the
customers and by providing superior service it CITI BANK still acquire major share in the
consideration list.
B an ks C o n sid e red F o r E d u ca tio n a l
Loan
DENA BA NK C OR P O R A T IO
8% N BANK SBI and HDFC form the major
OTHERS 5%
2 1% HSBC
9% chunk for consideration in this
category followed by SBI.
S BI
HDFC 35%
2 2%
Interest rates being the major factor for educational loan PSUs have the competitive edge due
to low interest rate.
B an ks C o nsidered Fo r E du catio n al
Lo an
DENA BA NK C O R P O R A T IO
8% N B A NK
OTHERS 5%
21% HSBC
9%
SBI
HDFC 35%
22%
SBI outrages other banks in the consideration list for educational loan.
Low interest rates and an extensive presence in varied locations seem to be the primary reason
for this.
Word Of Mouth
26%
New s papers &
Radio 3% Magaz ines
35%
Customer’s awareness of SBI through various media was measured.
SBI, being an old and experienced player, has immense awareness through the word of
mouth media.
OTHERS
The graph reveals that close to fifty
ICICI
10% 24%
CITI BANK
percent of the awareness is about
19%
CITI BANK
13%
ICICI
The personal loan market is a
13% 27%
relatively fragmented market
SBI
with respect to awareness.
GE CAPITAL
15% 12%
HDFC HSBC
14% 6%
Top Of M ind Aw a re ne ss For Housing Loa n
OTHERS
ICICI
According to our survey
12%
24%
CITI BA NK HDFC is the clear market
13%
leader in the awareness
SBI
paradigm.
HDFC 20%
31%
This area is also being
aggressively invaded by many
other players owing to the
increased requirement for
homes.
OTHERS
21% ICICI
19%
CITIBANK is also perceived to be
SBI
a market leader, besides being one.
12%
CITI BANK A quarter share of the awareness
24% HSBC
HDFC
8%
16%
pie of ‘Others’ can be attributed to
a gamut of the recent new launches
as also the varied co-branded credit
cards.
The reason associated with this behavior is the close proximity and long existence of PSU banks
making them safe and trustworthy. Also people have had accounts with the PSU banks as private
banks were non-existent earlier, and hence are reluctant to change their banks. However due to
efficient service, short processing time, competitive rates and a caring attitude people have
started to prefer private banks for meeting their retail needs.
Conclusion
BIBLOGRAPHY
BOOKS
1) Marketing research by BERRY G.C
2) Marketing Research by Malhotra N.K. , fifth edition
SITES
(http://www.icmrindia.org/free%20resources/casestudies/banking1.htm#b1
www.hdfcbank.com/
www.hsbc.co.in/
www.icicibank.com/
www.yesbank.in/
www.db.com
www.rocw.raifoundation.org/fashion/BAfashion-mktg/brandpositioning/lecture-notes/lecture-
04.pd
References
QUESTIONNAIRE
2. Rank the following factors according to their weightage in your purchase decision.
Cost _______
Processing time _______
Goodwill _______
Word of mouth _______
Advertisement ________
4. Which banks did you consider in your decision making before buying this product?
a) _______________________
b) _______________________
c) _______________________
d) _______________________
Banks => a) b) c) d)
Television
Newspapers & Magazines
Radio
Word of mouth
Billboards/Hoardings
11. Which bank comes to mind when thinking about housing loan.
Yes No
13. Is your bank providing e banking facilities are you satisfied or not
Yes No
14. Which bank is providing good online services.
____________________________________
15. Would you recommend your bank to someone else for the same product or any other
product that your bank offers?
Yes No