Table of content
Chapter 1
:- Introduction: Executive summary of the project
Chapter 2
:- Industry Introduction & IDBI Bank
IndustryIintroduction
IDBI Bank: All About
Industry/Bank performance
Correlation between Industry and IDBI banks
movement
Chapter 3
:-Research Methodology
Objective of the study
Scope of the study
Tools & techniques used
Applied principles and concepts
Sources of primary and secondary data
Data collection
Statistical analysis
Theoretical interpretations
Findings
Chapter 4
:- Conclusions and Recommendations
Appendix 1: Questionnaire
Appendix 2: Reference material
Chapter 1
Introduction: Executive summary of the project
Executive Summary
Banking Industry which is basically my concern industry around
which my project has to be revolved is really a very complex industry.
And to work for this was really a complex and hectic task and few times I
felt so frustrated that I thought to left the project and go for any new
industry and new project. Challenges which I faced while doing this
project were following-
Banking sector was quite similar in offering and products and
because of that it was very difficult to discriminate between our
product and products of the competitors.
Target customers and respondents were too busy persons that to
get their time and view for specific questions was very difficult.
Sensitivity of the industry was also a very frequent factor which
was very important to measure correctly.
Area covered for the project while doing job also was very large and
it
was
very
difficult
to
correlate
two
different
customers/respondents views in a one.
-
Every financial customer has his/her own need and according to
the requirements of the customer product customization was not
possible.
So above challenges some time forced me to leave the project but any how
I did my project in all circumstances. Basically in this project I analyzed
thatWhat factors are really responsible for performance of IDBI Banks
performance in this competitive era.
Chapter 2
Chapter 1
Industry status & IDBI Banks interface
Industry introduction
The Indian Banking industry, which is governed by the Banking
Regulation Act of India, 1949 can be broadly classified into two major
categories, non-scheduled banks and scheduled banks. Scheduled banks
comprise commercial banks and the co-operative banks. In terms of
ownership, commercial banks can be further grouped into nationalized
banks, the State Bank of India and its group banks, regional rural banks
and private sector banks (the old/ new domestic and foreign). These
banks have over 67,000 branches spread across the country in every city
and
villages
of
all
nook
and
corners
of
the
land.
The first phase of financial reforms resulted in the nationalization of 14
major banks in 1969 and resulted in a shift from Class banking to Mass
banking. This in turn resulted in a significant growth in the geographical
coverage of banks. Every bank had to earmark a minimum percentage of
their loan portfolio to sectors identified as priority sectors. The
manufacturing sector also grew during the 1970s in protected environs
and the banking sector was a critical source. The next wave of reforms
saw the nationalization of 6 more commercial banks in 1980. Since then
the number of scheduled commercial banks increased four-fold and the
number of bank branches increased eight-fold. And that was not the
limit
of
growth.
After the second phase of financial sector reforms and liberalization of
the sector in the early nineties, the Public Sector Banks (PSB) s found it
extremely difficult to compete with the new private sector banks and the
foreign banks. The new private sector banks first made their appearance
after the guidelines permitting them were issued in January 1993. Eight
new private sector banks are presently in operation. These banks due to
their late start have access to state-of-the-art technology, which in turn
helps them to save on manpower costs.
During the year 2000, the State Bank Of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in
credit. The 20 nationalized banks accounted for 53.2 percent of the
deposits and 47.5 percent of credit during the same period. The share of
foreign banks (numbering 42), regional rural banks and other scheduled
commercial banks accounted for 5.7 percent, 3.9 percent and 12.2
percent respectively in deposits and 8.41 percent, 3.14 percent and
12.85 percent respectively in credit during the year 2000.about the detail
of the current scenario we will go through the trends in modern economy
of the country.
Current Scenario:
The industry is currently in a transition phase. On the one hand, the
PSBs, which are the mainstay of the Indian Banking system are in the
process of shedding their flab in terms of excessive manpower, excessive
non Performing Assets (Npas) and excessive governmental equity, while
on the other hand the private sector banks are consolidating themselves
through mergers and acquisitions.
PSBs, which currently account for more than 78 percent of total banking
industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in
2000), falling revenues from traditional sources, lack of modern
technology and a massive workforce while the new private sector banks
are forging ahead and rewriting the traditional banking business model
by way of their sheer innovation and service. The PSBs are of course
currently working out challenging strategies even as 20 percent of their
massive employee strength has dwindled in the wake of the successful
Voluntary Retirement Schemes (VRS) schemes.
The private players however cannot match the PSBs great reach, great
size and access to low cost deposits. Therefore one of the means for them
to combat the PSBs has been through the merger and acquisition (M& A)
route. Over the last two years, the industry has witnessed several such
instances. For instance, HDFC Banks merger with Times Bank Icici
Banks acquisition of ITC Classic, Anagram Finance and Bank of
Madurai. Centurion Bank, Indusind Bank, Bank of Punjab, Vysya Bank
are said to be on the lookout. The UTI bank- Global Trust Bank merger
however opened a pandoras box and brought about the realization that
all was not well in the functioning of many of the private sector banks.
Private sector Banks have pioneered internet banking, phone banking,
anywhere banking, mobile banking, debit cards, Automatic Teller
Machines (ATMs) and combined various other services and integrated
them into the mainstream banking arena, while the PSBs are still
grappling with disgruntled employees in the aftermath of successful VRS
schemes. Also, following Indias commitment to the W To agreement in
respect of the services sector, foreign banks, including both new and the
existing ones, have been permitted to open up to 12 branches a year with
effect from 1998-99 as against the earlier stipulation of 8 branches.
Tasks of government diluting their equity from 51 percent to 33 percent
in November 2000 has also opened up a new opportunity for the takeover
of even the PSBs. The FDI rules being more
rationalized in Q1FY02 may also pave the way for foreign banks taking
the
M&
route
to
acquire
willing
Indian
partners.
Meanwhile the economic and corporate sector slowdown has led to an
increasing number of banks focusing on the retail segment. Many of
them are also entering the new vistas of Insurance. Banks with their
phenomenal reach and a regular interface with the retail investor are the
best placed to enter into the insurance sector. Banks in India have been
allowed
to
participation,
provide
fee-based
invest
in
an
insurance
insurance
services
company
without
for
risk
providing
infrastructure and services support and set up of a separate jointventure insurance company with risk participation.
Aggregate Performance of the Banking Industry
Aggregate deposits of scheduled commercial banks increased at a
compounded annual average growth rate (Cagr) of 17.8 percent during
1969-99, while bank credit expanded at a Cagr of 16.3 percent per
annum. Banks investments in government and other approved securities
recorded a Cagr of 18.8 percent per annum during the same period.
In FY01 the economic slowdown resulted in a Gross Domestic Product
(GDP) growth of only 6.0 percent as against the previous years 6.4
percent. The WPI Index (a measure of inflation) increased by 7.1 percent
as against 3.3 percent in FY00. Similarly, money supply (M3) grew by
around
16.2
percent
as
against
14.6
percent
year
ago.
The growth in aggregate deposits of the scheduled commercial banks at
15.4 percent in FY01 percent was lower than that of 19.3 percent in the
previous year, while the growth in credit by
SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago.
The industrial slowdown also affected the earnings of listed banks. The
net profits of 20 listed banks dropped by 34.43 percent in the quarter
ended March 2001. Net profits grew by 40.75 percent in the first quarter
of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 20002001.
On the Capital Adequacy Ratio (CAR) front while most banks managed to
fulfill the norms, it was a feat achieved with its own share of difficulties.
The CAR, which at present is 9.0 percent, is likely to be hiked to 12.0
percent
by
the
year
2014
based
on
the
Basle
Committee
recommendations. Any bank that wishes to grow its assets needs to also
shore up its capital at the same time so that its capital as a percentage of
the risk-weighted assets is maintained at the stipulated rate. While the
IPO route was a much-fancied one in the early 90s, the current scenario
doesnt look too attractive for bank majors.
Consequently, banks have been forced to explore other avenues to shore
up their capital base. While some are wooing foreign partners to add to
the capital others are employing the M& A route. Many are also going in
for right issues at prices considerably lower than the market prices to
woo the investors.
Interest Rate Scene
The two years, post the East Asian crises in 1997-98 saw a climb in the
global interest rates. It was only in the later half of FY01 that the US Fed
cut interest rates. India has however
remained more or less insulated. The past 2 years in our country was
characterized by a mounting intention of the Reserve Bank Of India (RBI)
to steadily reduce interest rates resulting in a narrowing differential
between global and domestic rates.
The RBI has been affecting bank rate and CRR cuts at regular intervals
to improve liquidity and reduce rates. The only exception was in July
2000 when the RBI increased the Cash Reserve Ratio (CRR) to stem the
fall in the rupee against the dollar. The steady fall in the interest rates
resulted in squeezed margins for the banks in general.
Governmental Policy:
After the first phase and second phase of financial reforms, in the 1980s
commercial banks began to function in a highly regulated environment,
with administered interest rate structure, quantitative restrictions on
credit flows, high reserve requirements and reservation of a significant
proportion of lendable resources for the priority and the government
sectors. The restrictive regulatory norms led to the credit rationing for
the private sector and the interest rate controls led to the unproductive
use of credit and low levels of investment and growth. The resultant
financial repression led to decline in productivity and efficiency and
erosion of profitability of the banking sector in general.
This was when the need to develop a sound commercial banking system
was
felt.
This
was
worked
out
mainly
with
the
help
of
the
recommendations of the Committee on the Financial
System (Chairman: Shri M. Narasimham), 1991. The resultant financial
sector reforms called for interest rate flexibility for banks, reduction in
reserve requirements, and a number of structural measures. Interest
rates have thus been steadily deregulated in the past few years with
banks being free to fix their Prime Lending Rates(PLRs) and deposit rates
for most banking products. Credit market reforms included introduction
of new instruments of credit, changes in the credit delivery system and
integration of functional roles of diverse players, such as, banks,
financial institutions and non-banking financial companies (Nbfcs).
Domestic Private Sector Banks were allowed to be set up, PSBs were
allowed
to
access
the
markets
to
shore
Implications Of Some Recent Policy Measures:
up
their
Cars.
The allowing of PSBs to shed manpower and dilution of equity are moves
that will lend greater autonomy to the industry. In order to lend more
depth to the capital markets the RBI had in November 2000 also changed
the capital market exposure norms from 5 percent of banks incremental
deposits of the previous year to 5 percent of the banks total domestic
credit in the previous year. But this move did not have the desired effect,
as in, while most banks kept away almost completely from the capital
markets, a few private sector banks went overboard and exceeded limits
and indulged in dubious stock market deals. The chances of seeing
banks making a comeback to the stock markets are therefore quite
unlikely in the near future.
The move to increase Foreign Direct Investment FDI limits to 49 percent
from 20 percent
during the first quarter of this fiscal came as a welcome announcement
to foreign players wanting to get a foot hold in the Indian Markets by
investing in willing Indian partners who are starved of net worth to meet
CAR norms. Ceiling for FII investment in companies was also increased
from 24.0 percent to 49.0 percent and have been included within the
ambit of FDI investment.
IDBI bank: all about
The economic development of any country depends on the extent to
which its financial system efficiently and effectively mobilizes and
allocates resources. There are a number of banks and financial
institutions that perform this function; one of them is the development
bank. Development banks are unique financial institutions that perform
the special task of fostering the development of a nation, generally not
undertaken by other banks.
Development banks are financial agencies that provide medium-and
long-term financial assistance and act as catalytic agents in promoting
balanced development of the country. They are engaged in promotion and
development of industry, agriculture, and other key sectors. They also
provide development services that can aid in the accelerated growth of an
economy.
The objectives of development banks are:
To serve as an agent of development in various sectors, viz. industry,
agriculture, and international trade
To accelerate the growth of the economy
To allocate resources to high priority areas
To foster rapid industrialization, particularly in the private sector,
so as to provide employment opportunities as well as higher
production
To develop entrepreneurial skills
To promote the development of rural areas
To finance housing, small scale industries, infrastructure, and social
utilities.
In addition, they are assigned a special role in:
Planning, promoting, and developing industries to fill the gaps in
industrial sector.
Coordinating the working of institutions engaged in financing, promoting
or developing industries, agriculture, or trade, rendering promotional
services such as discovering project ideas, undertaking feasibility
studies, and providing technical, financial, and managerial assistance for
the implementation of projects
Industrial development bank of India
The industrial development bank of India(IDBI) was established in 1964
by parliament as wholly owned subsidiary of reserve bank of India. In
1976, the banks ownership was transferred to the government of India.
It was accorded the status of principal financial institution for
coordinating the working of institutions at national and state levels
engaged in financing, promoting, and developing industries.
IDBI has provided assistance to development related projects and
contributed to building up substantial capacities in all major industries
in India. IDBI has directly or indirectly assisted all companies that are
presently reckoned as major corporates in the country. It has played a
dominant role in balanced industrial development.
IDBI set up the small industries development bank of India (SIDBI) as
wholly owned subsidiary to cater to specific the needs of the small-scale
sector.
IDBI has engineered the development of capital market through helping
in setting up of the securities exchange board of India(SEBI), National
stock exchange of India limited(NSE), credit analysis and research
limited(CARE), stock holding corporation of India limited(SHCIL), investor
services
of
India
limited(ISIL),
national
securities
depository
limited(NSDL), and clearing corporation of India limited(CCIL)
In 1992, IDBI accessed the domestic retail debt market for the first time
by issuing innovative bonds known as the deep discount bonds. These
new bonds became highly popular with the Indian investor.
In 1994, IDBI Act was amended to permit public ownership up to 49 per
cent. In July 1995, it raised over Rs 20 billion in its first initial public
(IPO) of equity, thereby reducing the government stake to 72.14 per cent.
In June 2000, a part of government shareholding was converted to
preference capital. This capital was redeemed in March 2001, which led
to a reduction in government stake. The government stake currently is 51
per cent.
In august 2000, IDBI became the first all India financial institution to
obtain ISO 9002: 1994 certification for its treasury operations. It also
became the first organization in the Indian financial sector to obtain ISO
9001:2000 certification for its forex services.
Milestones
July 1964: Set up under an Act of Parliament as a wholly-owned
subsidiary of Reserve Bank of India.
February 1976: Ownership transferred to Government of India.
Designated Principal Financial Institution for co-coordinating the
working of institutions at national and State levels engaged in
financing, promoting and developing industry.
March 1982: International Finance Division of IDBI transferred to
Export-Import Bank of India, established as a wholly-owned
corporation of Government of India, under an Act of Parliament.
April 1990: Set up Small Industries Development Bank of India
(SIDBI) under SIDBI Act as a wholly-owned subsidiary to cater to
specific needs of small-scale sector. In terms of an amendment to
SIDBI
Act
in
September
2000,
IDBI
divested
51%
of
its
shareholding in SIDBI in favour of banks and other institutions in
the first phase. IDBI has subsequently divested 79.13% of its stake
in its erstwhile subsidiary to date.
January 1992: Accessed domestic retail debt market for the first
time with innovative Deep Discount Bonds; registered pathbreaking success.
December 1993: Set up IDBI Capital Market Services Ltd. as a
wholly-owned subsidiary to offer a broad range of financial
services, including Bond Trading, Equity Broking, Client Asset
Management and Depository Services. IDBI Capital is currently a
leading Primary Dealer in the country.
September 1994: Set up IDBI Bank Ltd. in association with SIDBI
as a private sector commercial bank subsidiary, a sequel to RBI's
policy
of
opening
up
domestic
banking
sector
to
private
participation as part of overall financial sector reforms.
October 1994: IDBI Act amended to permit public ownership upto
49%.
July 1995: Made Initial Public Offer of Equity and raised over
Rs.2000 crore, thereby reducing Government stake to 72.14%.
March 2000:Entered into a JV agreement with Principal Financial
Group, USA for participation in equity and management of IDBI
Investment
Management
Company
Ltd.,
erstwhile
100%
subsidiary. IDBI divested its entire shareholding in its asset
management venture in March 2012 as part of overall corporate
strategy.
March 2000: Set up IDBI Intech Ltd. as a wholly-owned subsidiary
to undertake IT-related activities.
June 2000: A part of Government shareholding converted to
preference capital, since redeemed in March 2001; Government
stake currently 58.47%.
August 2000: Became the first All-India Financial Institution to
obtain ISO 9002:1994 Certification for its treasury operations. Also
became the first organisation in Indian financial sector to obtain
ISO 9001:2000 Certification for its forex services.
March 2005: Set up IDBI Trusteeship Services Ltd. to provide
technology-driven
information
and
professional
services
to
subscribers and issuers of debentures.
Feburary 2007: Associated with select banks/institutions in
setting up Asset Reconstruction Company (India) Limited (ARCIL),
which will be involved with the
Strategic management of non-performing and stressed assets of
Financial Institutions and Banks.
September 2010: IDBI acquired the entire shareholding of Tata
Finance Limited in Tata Homefinance Ltd, signalling IDBI's foray
into the retail finance sector. The housing finance subsidiary has
since been renamed 'IDBI Homefinance Limited'.
December 2012: On December 16, 2012, the Parliament approved
The Industrial Development Bank (Transfer of Undertaking and
Repeal Bill) 2002 to repeal IDBI Act 1964. The President's assent
for the same was obtained on December 30, 2012. The Repeal Act
is aimed at bringing IDBI under the Companies Act for investing it
with the requisite operational flexibility to undertake commercial
banking business under the Banking Regulation Act 1949 in
addition to the business carried on and transacted by it under the
IDBI Act, 1964.
July
2014:
The
Industrial Development
Bank
(Transfer
of
Undertaking and Repeal) Act 2012 came into force from July 2,
2014.
July 2014: The Boards of IDBI and IDBI Bank Ltd. take inprinciple decision regarding merger of IDBI Bank Ltd. with
proposed Industrial Development Bank of India Ltd. in their
respective meetings on July 29, 2014.
September 2014: The Trust Deed for Stressed Assets Stabilisation
Fund (SASF) executed by its Trustees on September 24, 2014 and
the first meeting of the Trustees was held on September 27, 2014.
September 2014: The new entity "Industrial Development Bank of
India" was incorporated on September 27, 2014 and Certificate of
commencement of business was issued by the Registrar of
Companies on September 28, 2014.
September 2014:Notification issued by Ministry of Finance
specifying SASF as a financial institution under Section 2(h)(ii) of
Recovery of Debts due to Banks & Financial Institutions Act, 1993.
September 2014:Notification issued by Ministry of Finance on
September 29, 2014 for issue of non-interest bearing GoI IDBI
Special Security, 2024, aggregating Rs.9000 crore, of 20-year
tenure.
September 2014: Notification for appointed day as October 1,
2014, issued by Ministry of Finance on September 29, 2014.
September 2014:RBI issues notification for inclusion of Industrial
Development Bank of India Ltd. in Schedule II of RBI Act, 1934 on
September 30, 2014.
October 2014: Appointed day - October 01, 2014 - Transfer of
undertaking of IDBI to IDBI Ltd. IDBI Ltd. commences operations
as a banking company. IDBI Act, 1964 stands repealed. January
2005:The Board of Directors of IDBI Ltd., at its meeting held on
January 20, 2005, approved the Scheme of Amalgamation,
envisaging merging of IDBI Bank Ltd. with IDBI Ltd. Pursuant to
the scheme approved by the Boards of both the banks, IDBI Ltd.
will issue 100 equity shares for 142 equity shares held by
shareholders in IDBI Bank Ltd. EGM has been convened on
February 23, 2005 for seeking shareholder approval for the
scheme.
IDBI Bank Business Chart
IDBI BANK
DEVELOPMENT BANK.
RETAIL BANKING
SAVING ACCOUNT
CURRENT ACCOUNT
PERSONAL SAVING
CORPORATE SAVING
INVESTMENT
IDBI Bank Organizational Chart
Chairman
President
Vice president
Finance
Regional Head
Zonal Head
Divisional Sales
Manager
Territory In charge
Vice president
H. R.
Vice president
Marketing
Vice president
Operations
Chapter 3
Research Methodology
Objective of the study
Project study which is being conducted by me for the last two month is
not only a formality for the fulfillment of the two year full time Post
Graduate Diploma in Business Management. But being a management
student and a good employee I tried my best to extract best of the
information available in the market for the use of society and people. The
objectives have been classified by me in this project form personal to
professional, but here I am not disclosing my personal objective which
have been achieved by me while doing the project. Only professional
objectives which are being covered by me in this project are as following-
To know about environmental factors affecting IDBI Banks
performance.
To analyze the role of advertisement for bank performance.
To know the perception and conception of customers towards
banking products and specially focused for IDBI Banks
product.
To explore the potential areas for the new bank branches
which will provide both price and people to the bank with
constant promotion and placing strategy.
Scope of the Study
Each and every project study along with its certain objectives also have
scope for future. And this scope in future gives to new researches a new
need to research a new project with a new scope. Scope of the study not
only consist one or two future business plan but sometime it also gives
idea about a new business which becomes much more profitable for the
researches then the older one.
Scope of the study could give the projected scenario for a new
successful strategy with a proper implementation plan. Whatever scope I
observed in my project are not exactly having all the features of the scope
which I described above but also not lacking all the features.
Research study could give an idea of network expansion for
capturing more market and customer with better services and
lower cost, with out compromising with quality.
In future customer requirements could be added with the
product and services for getting an edge over competitors.
Consumer behavior could also be used for the purpose of
launching a new product with extra benefits which are
required by customers for their account (saving or current )
and/or for their investments.
Factors which are responsible for the performance for bank
can also be used for the modification of the strategy and
product for being more profitable.
Factors which I observed while doing project study are
followingCompetitors
Customer Behaviour
Advertisement/promotional activities
Attitude of manpower and
Economic conditions
These all could also be interchanged with each other for each
other in banks strategies for making a final business plan to
effect the market with a positive way without disturbing a lot
to market, customers and competitors with disturbance in
market shares.
Tools and Techniques
As no study could be successfully completed without proper tools and
techniques, same with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently. And I
am very thankful to all those tools for helping me a lot. Basic tools which
I used for project from statistics are- Bar Charts
- Pie charts
- Tables
bar charts and pie charts are really useful tools for every research to
show the result in a well clear, ease and simple way. Because I used bar
charts and pie cahrts in project for showing data in a systematic way, so
it need not necessary for any observer to read all the theoretical detail,
simple on seeing the charts any body could know that what is being said.
Technological Tools
Ms- Excel
Ms-Access
Ms-Word
Above application software of Microsoft helped me a lot in making project
more interactive and productive.
Microsoft-Excel had a great role in my project, it created for me a
situation of you sit and get. I provided it simply all the detail of data
and in return it given me all the relevant information..
Microsoft-Access did the performance of my personal assistant who
organizes my all the details of document without disturbing them even a
single time in all the project duration.
And in last Microsoft-Word did help me for the documentation of the
project in a presentable form.
Applied Principles and Concepts
While I started to do the project the main thing which was the matter of
concern was that around what principles I have to revolve my project.
Because with out having any hypothesis and objective we can not
determine that what output or result we are expecting form the project.
And second thing is that having only tools and techniques for the
purpose of project is not relevant until unless we have the principals for
which we have to use those tools and techniques.
Mathematical Averages
Standard Deviation
Correlation
Sources of Primary and Secondary data:
For the purpose of project data is very much required which works as a
food for process which will ultimately give output in the form of
information. So before mentioning the source of data for the project I
would like to mention that what type of data I have collected for the
purpose of project and what it is exactly.
1. Primary Data:
Primary data is basically the live data which I collected on field while
doing cold calls with the customers and I shown them list of question
for which I had required their responses. In some cases I got no
response form their side and than on the basis of my previous
experiences I filled those fields.
Source: Main source for the primary data for the project was
questionnaires which I got filled by the customers or some times filled
myself on the basis of discussion with the customers.
2. Secondary Data:
Secondary data for the base of the project I collected from intranet of
the Bank and from internet, RBI Bulletin, Journal by ICFAI University.
Statistical Analysis
In this segment I will show my findings in the form of graphs and charts.
All the data which I got form the market will not be disclosed over here but
extract of that in the form of information will definitely be here.
Detail:
Size of Data
: 250
Area
: Saket
Type of Data
: 1. Primary
Industry
: Banking
Respondent
2. Secondary
: Customers
Table1: Correlation between awareness of customers about IDBI
bank & their Age
AGE
20-25
25-30
30-35
35-40
40-45
45-50
50-60
60-ABOVE
NO. OF RESPONSE
25
46
34
23
21
22
24
55
RESPONSES
60
50
40
30
NO. OF RESPONSE
20
10
20
-2
5
25
-3
0
30
-3
5
35
-4
0
40
-4
5
45
-5
0
50
60 -6
-A 0
BO
VE
AGE GROUP
TABLE 2: PERCEPTION OF IDBI AS A BANK
TYPE OF BANK
PRIVATE
PUBLIC
PRIVATE/PUBLIC
DON'T KNOW
RESPONSES
50
45
100
55
TABLE 3 : RATING OF CUSTOMERS FOR IDBI BANK AS A GOOD
BANK
PARAMETER
RESPONSES
EFFICIENCY
INTERNET BANKING/ATMs
PRODUCT RANGE
NETWORK
PHONE BANKING
33%
75%
25%
95%
33%
22%
22%
EFFICIENCY
75%
INTERNET
BANKING/ATMs
PRODUCT RANGE
NETWORK
95%
25%
PHONE BANKING
TABLE 4: MARKET SHARES IN SAKET IN COMPARISION TO
COMPETITORS
BANK NAME
SBI
IDBI
% OF SHARE
30%
15%
ICICI
PNB
HDFC
HSBC
OTHERS
25%
10%
5%
5%
10%
TABLE 5: FACTORS RESPONSIBLE FOR PERFORMANCE OF IDBI
BANK IN NOIDA
PARAMETERS
PRODUCT
ADVERTISMENT
MANPOWER
NET-BANKING
PHONE BANKING
INVESTMENT SCHEME
NETWORK
% OF SHARE
50%
5%
25%
2%
5%
10%
3%
TABLE 6 : COMPARATIVE STUDY WITH MAJOR COMPETITORS ON
BASIC PARAMETERS
PARAMETERS/BANKS
IDBI
ICICI
SBI
PNB
HSBC
PRODUCT
ADVERTISMENT
MANPOWER
NET-BANKING
PHONE BANKING
INVESTMENT SCHEME
NETWORK
CREDIBILITY
20%
3%
10%
3%
10%
5%
2%
20%
15%
45%
50%
50%
40%
25%
40%
10%
30%
15%
2%
10%
5%
50%
40%
40%
15%
20%
3%
12%
5%
10%
5%
20%
10%
7%
25%
8%
30%
5%
3%
5%
CANAR
A BANK
10%
10%
10%
17%
10%
5%
10%
5%
TABLE 7: THE EFFECTIVENESS OF COMMERCIALS OF IDBI BANK
DAYS AFTER THE AD IS
SEEN
0-5 days
6-10 days
11-15 days
more than 15 days
POSITIVE RESPONSE
100
67
43
40
Findings
1. The credibility of IDBI bank is good in comparison to its
competitors
as GOI (Government Of India) is a major share
holder in the company.
2. IDBI bank has potential a tapped market in SAKET in region
and hence has an opportunities for growth.
3. The products of IDBI bank has good credibility in the region
compare to its competitors.
4. The advertisement of the bank was very effective from the
first day of its airing till the fifth day and there after it starts
declining.
5. The initial balance for A/C opening is Rs, 5000/why people are reluctant in opening the same.
and thats
Chapter 4
Conclusions and Recommendations
Conclusions
1. Consumers of Saket have good awareness level about IDBI bank as
well as about its services and products.
2. The advertising campaign has successfully been able to increase the
market share of IDBI in Saket.
3. The modern days technology like internet banking, phone banking,
used by IDBI bank for providing banking services has sent positive
signals in the mind of consumes.
4. The network of IDBI in Saket is lagging behind a little than its
competitors like ICICI bank and HDFC bank.
5. It can be distilled from data that IDBI bank has good market share
as compared to its competitors considering the amount of resources
deployed by them in the market.
Recommendations
1. Since there is only two branch of IDBI bank and only three atms in
Saket, so it is necessary for IDBI bank to open more branches and
install more atms to serve the vast market of saket especially.
2. More resources should be allocated in the market of Saket as there
is big untapped market in saket, so it becomes necessary for IDBI
bank for taking an edge over the competitors.
3. A short advertising campaign in Saket has produced good results in
a short span of times, so to gain long term benefits is very
necessary for IDBI bank to carry on this campaign with more
intensity.
4. Besides opening more branches it should also look for opening some
extension counter in Kutub near meherauli and one in Khanpur.
5. As Government is the majority share holder in the shares of IDBI
bank, which makes this bank more reliable than other private
banks, this thing can be used in the favour of IDBI bank by making
people aware about this fact and winning their faith.
Appendix1: Questionnaire
NAME
AGE.
SEX: MALE/FEMALE
ADDRESS:...
CITYPIN
CODE....
CONTACT NO.
1. DO YOU KNOW ABOUT IDBI BANK LTD.?
YES
NO
2. IDBI BANK IS A
PRIVATE BANK
PRIVATE/PUBLIC BANK
PUBLIC BANK
DONT KNOW
3. RANK THE IDBI BANK ON THE FOLLOWEING FEATURES (RANK 1
FOR BEST
AND 5 FOR WORSE ON 1 TO 5 SCALE)
EFFICENCY
MANPOWER
INTERNET BANKING/ATMs
NETWORK
PRODUCT RANGE
PHONE BANKING
4. YOU WOULD LIKE TO BE A CUSTOMER OF BANK BECAUSE
5. YOU WOULD NOT LIKE TO BE A CUSTOMER BANK BECAUSE6. NAME THE BANK WHICH COMES IN YOUR MIND AT VERY FIRST AND
WHY?
.
7. DO YOU THINK IDB IBANK IS A SAFE PLACE FOR YOUR MONEY?
YES
NO
8. DO YOU THINK IDBI BANK NEED MORE ADVERTISMENT?
YES
NO
9. YOUR LEVEL OF SATISFACTION WITH IDBI BANK-
VERY SATISFIED SATISFIED NORMAL
DISSATISFIED
VERY
DISAT.
10. IF YOU WILL HAVE OPTION AGAINEST IDBI BANK YOU WILL GO FOR
SBI
ICICI
PNB
OTHER
11. DO YOU REMEMBER THE COMMERCIAL OF IDBI BANK?
YES
NO
12. WHEN DID YOU LAST SEE THE ADVERTISEMENT OF IDBI BANK?
0-5 DAYS BACK
6-10 DAYS BACK
11-15 DAYS BACK
MORE THAN 15
DAYS BACK
13.
DO YOU KNOW WHERE IS THE BRANCH OF IDBI LOCATED IN
SAKET?
14. IDBI BANK LTD. IN SAKET IS EFFECTIVE BECAUSE
.
15. IDBI BANK LTD. IN SAKET IS NOT EFFECTIVE BECAUSE
.
16. IDBI BANK LTD. IS A GOOD BANK FORSERVICE PEOPLE
BUSINESS
PERSONS
POLITICIANS
GENERAL PUBLIC
ALL OF ABOVE
17. NAME IDBI BANK LTD. GIVE BLUE-PRINT IN YOUR MIND OFHIGH NETWORK
FINANCILALLY
EFFICIENT BANK
HI-TECH BANK
OTHER
CUSTOMER FRIENDLY
(PLEASE
SPECIFY)
Appendix 2: Reference Material
www.idbibank.com
www2.idbibank.com
www.google.com
R.S. Sharma, Business statistics, First India Print, India, 2014,
Aaker Kumar and Day, Marketing research, 6th Ed.,john willy & sons,1997.
ICFAI Journal of Banking
The Economics times
The Times of India
