CHAPTER 1 INTRODUCTION
1.1 EVOLUTION OF INDIAN BANKING INDUSTRY:-
Banking in India originated in the last decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai- both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935.
After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the Americas. Some banks were opened at that time which functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative ventures, most of the banks opened in India during that period could not survive and failed. The depositors lost money and lost interest in keeping deposits with banks.
In 1969 the Indian government nationalised all the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as
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commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks; they have been joined since 1990s by new private commercial Banks and a number of foreign banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.
The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases.
They are as mentioned below early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian banking system with the advent of Indian Financial & Banking Sector Reforms after 1991. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
PHASE I - Early phase from 1786 to 1969 of Indian Banks. PHASE II - Nationalization of Indian Banks and up to 1991. PHASE III - Indian Financial & Banking Sector Reforms after 1991.
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PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948.There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those day‟s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to the traders.
PHASE II:
Government took major steps in this Indian Banking Sector Reform after Independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership.
The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.
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1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised to approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.
PHASE III:
This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift.
The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.
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1.2 INTRODUCTION OF BANKING: -
MEANING AND DEFINITION:
Bank is an institution that deals in money and its substitutes and provides crucial financial services. The principal type of baking in the modern industrial world is commercial banking & central banking.
Banking means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act, 1949.
The concise oxford dictionary has defined a bank as "Establishment for custody of money which it pays out on customers order." In fact this is the function which the bank performed when banking originated.
"Banking in the most general sense, is meant the business of receiving, conserving &utilizing the funds of community or of any special section of it." -By H. Wills & J. Bogan
"A banker of bank is a person, a firm, or a company having a place of business where credits are opened by deposits or collection of money or currency or where money is advanced and waned. -By Findlay Sheras
A Bank: Accept deposits of money from public, Pays interest on money deposited with it. Lends or invests money Repays the amount on demand, Allow the money deposited to be withdrawn by cheque or draft.
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Banks have played a pivotal role in the process of development of the district over the years, especially after the formation of the district in 1993. Apart from dispensing credit, the Banks have also brought about social changes. The contribution of the banking sector in the field of overall development of the district is elaborated in the following paragraphs.
At the beginning of the 20th century; Indian economy was passing through a relative period of stability. Around five decades have elapsed since the India's First war of Independence, and the social, industrial and other infrastructure have developed. At that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras- which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was renamed the State Bank of India. There were also some exchange banks, as also a number of Indian joint stock banks. All these banks operated in different segments of the economy.
The presidency banks were like the central banks and discharged most of the functions of central banks. They were established under charters from the British East India Company. The exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock banks were generally undercapitalized and lacked the experience and maturity to compete with the presidency banks, and the exchange banks. There was potential for many new banks as the economy was growing. Lord Carson had observed then in the context of Indian banking: "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumber some compartments.”
Under these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank.
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1.3 BANKING SYSTEM IN INDIA: -
Indian banking sector can be divided mainly into four broad categories namely Central Banks, Nationalized Banks, Private Banks, and Foreign Banks. The other categories of banks include co-operative banks and regional rural banks. Since these banks don‟t form a substantial chunk of the banking system, we will focus on the first four categories.
CENTRAL BANK IN INDIA: - RESERVE BANK OF INDIA
NATIONALISED BANK IN INDIA: - The Banking System in India is dominated by nationalized banks. The Nationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective behind Nationalization Banks was to spread banking Infrastructure in Rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. These Banks were
State Bank of India Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank
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Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Syndicate Bank Union Bank of India IDBI Bank
PRIVATE BANKS IN INDIA: - All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
IndusInd Bank Axis Bank HDFC Bank ICICI Bank Karnataka Bank Limited Federal Bank ING Vysya Bank Jammu & Kashmir Bank Karur Vysya Bank Kotak Mahindra Bank Ratnakar Bank Dhanalakshmi Bank
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FOREIGN BANKS IN INDIA: - Foreign Banks are likely to succeed in their niche markets and be the innovators in terms of technology introduction in the domestic scenario. The outlook for the private sector banks indeed looks to be more promising vis-à-vis other banks. While their focused operations lower but more productive employee force etc. will stand them good, possible acquisitions of PSU banks will definitely give them the much needed scale of operations and access to lower cost of funds.
Standard Charted Bank Deutsche Bank Royal Bank of Scotland Bank of America CITI Bank ABN Amro Bank HSBC Bank
CLASSIFICATION OF BANKS:-
I. CLASSIFICATION ON THE BASIS OF OWNERSHIP: - On the basis of ownership banks are of the following types:
1. PUBLIC SECTOR BANK Public sector banks are those banks which are owned by the Government. The Govt. runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6banks were also nationalized. Therefore in 1980 the number of nationalized bank was 20. But at present there are 9 banks are nationalized. All these banks are belonging to public sector category. Welfare is their principle objective.
2. PRIVATE SECTOR BANKS These banks are owned and run by the private sector like various banks in the country such as ICICI Bank, HDFC Bank etc. An individual has control over their banks in preparation to the share of the banks held by him.
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3. CO-OPERATIVE BANKS Co-operative banks are those financial institutions. They provide short term & medium term loans to their members. Co-operative banks are in every state in India. Its branches at district level are known as the central co-operative bank. The central co-operative bank in turn has its branches both in the urban & rural areas. Every state co-operative bank is an apex bank which provides credit facilities to the central co-operative bank. It mobilized financial resources from richer section of urban population by accepting deposit and creating the credit like commercial bank and borrowing from the money mkt. It also gets funds from RBI.
II. ACCORDING TO RESERVE BANK OF INDIA ACT 1935:- Banks are classified into following two categories on the basis of Reserve Bank Act 1934.
1. SCHEDULED BANK These banks have paid up capital of at least Rs. 5 Lacs. These are like a joint stock company. It is a co-operative organization. These banks find their mention in the second schedule of the reserve bank.
2. NON SCHEDULED BANK These banks are not mentioned in the second schedule of reserve bank paid up capital of these banks is less then Rs.5 Lacs. The no. such bank is gradually tolling in India.
III. CLASSIFICATION ACCORDING TO FUNCTION: - On the basis of functions banks are classified as under.
1. COMMERCIAL BANKS The commercial banks generally extend short-term loans to businessmen & traders. Since their deposits are for a short-period only. They cannot lend money for a long period. These banks reform various types or agency job for their customers. These banks are not in a position to grant long-term loans to industries because their deposits are only for a short
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period. The majority of joint stock banks in India are commercial banks which finance trade & commerce only.
2. SAVING BANKS The principle function of these banks is to collect small saving across the country and put them into productive use. These banks have shown marked development in Germany & Japan. These banks are established in HAMBURG City of Germany in 1765.In India a department of post offices functions as saving banks.
3. FOREIGN EXCHANGE BANKS These are special types of banks which specialize in financing foreign trade. Their main function is to make international payments through purchase & sale of exchange bills. As it well known, the exporters of a country prefer to receive the payments for exports in their own currency. Thus these banks convert home currency into foreign currency and vice versa. It is on this account that these banks have to keep with themselves stock of the currency of various countries. Along with that, they have to open branches in foreign countries to carry on their business.
4. INDUSTIRAL BANKS The industrial bank extends long term loans to industries. In fact, they also help industrials firms to sell their debentures and shares. Sometimes, they even under write the debentures & shares of big industrial concerns.
5. INDIGENIOUS BANKS These banks found their origin in India. These banks made a significant contribution to the development of agricultural and industries before independence. Mahajans, rural moneylenders have been the forerunner of these banks in India.
6. CENTRAL BANK The central bank occupies a pivotal position in the monetary and banking structure of the country. The central bank is the undisputed leader of the money market. As such it supervises controls and regulates the activities of commercial banks affiliated with it. The central bank is
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also the higher monetary institution in the country charged with the duty &responsibility of carrying out the monetary policy formulated by the government. India's central bank known as the reserve bank of India was set up in 1935.
7. AGRICULTURAL BANK The commercial and the industrial banks are not in a position to meet the credit requirements of agriculture. Hence, there arises the need for setting up special type of banks of finance agriculture. The credit requirements of the farmers are two types. Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs. Secondly, the farmers require long-term loans to purchase land, to affect permanent improvements on the land to buy equipment and to provide for irrigation works. There are two types of agriculture banks. a) Agriculture co-operative banks, and b) Land mortgage banks :- The farmer provide short-term credit, while the letter extend long-term loans to the farmer
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1.4 INTRODUCTION OF CUSTOMER PERCEPTION :-
MEANING & DEFINITION
The process by which an individual selects, organizes, and interprets stimuli into meaningful and coherent picture of the world. How we see the world around us, this phenomenon is known as perception.
Customer perception is defined as the way that customers usually view or feel about certain services and products. It can also be related to customer satisfaction which is the expectation of the customer towards the products.
This truth is no different from raising a small child. Once a child understands (Perceives) that negative actions swiftly result in negative consequences, the child will change his (or) her behavior. And once a child understands (perceives) that positive actions will earn positive rewards he will want to continue to behave appropriately in order to be rewarded. The same concept applies to customer‟s perception. "It is not who you are, it‟s who people think you are your company‟s success can be measured in only one way. The perceived value to your customer. Everything else is secondary. It provides you with a way to accurately measure how customers think of your company, products & services.
Customer perception is an important of our relationship with our customers. Customer satisfaction is a mental state which results from the customer‟s comparison of expectations prior to a purchase with performance perceptions after a purchase. A customer may take such comparisons for each part of an offer called “domain-specific satisfaction” or for the offer in total “global satisfaction”. Moreover, this mental state, which we view as a cognitive judgment, is conceived of as falling somewhere on a bipolar continuum bounded at the lower end by a low level of satisfaction where expectations exceed performance perceptions and at higher end by a high level of satisfaction where performance perceptions exceed expectations.
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1.5 INTRODUCTION OF RETAIL BANKING: -
MEANING
Retail banking is when a bank executes transactions directly with consumers, rather than corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking. It may also be used to refer to a division of a bank dealing with retail customers and can also be termed as Personal Banking services.
In the US the term Commercial bank is used for a normal bank to distinguish it from an investment bank. After the great depression, through the Glass–Steagall Act, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).
RETAIL BANKING IN INDIA: -
Retail banking in India has fast emerged as one of the major drivers of the overall banking industry and has witnessed enormous growth in the recent past. The Retail Banking Report encompasses extensive study & analysis of this rapidly growing sector. It primarily covers analysis of the present status, current trends, major issues & challenges in the growth of the retail banking sector. This report helps in Banks, financial institutions, MNC Banks, academicians, consultants and researchers to have a better understanding of the booming opportunities in retail banking in India.
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With a jump in the Indian economy from a manufacturing sector, that never really took off, to a nascent service sector, Banking as a whole is undergoing a change. A larger option for the consumer is getting translated into a larger demand for financial products and customisation of services is fast becoming the norm than a competitive advantage. With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, CEO, ICICI Bank] players are focussing more and more on the Retail and are waking up to the potential of this sector of banking. At the same time, the banking sector as a whole is seeing structural changes in regulatory frameworks and securitisation and stringent NPA norms expected to be in place by 2004 means the faster one adapts to these changing dynamics, the faster is one expected to gain the advantage. In this article, we try to study the reasons behind the euphemism regarding the Retail-focus of the Indian banks and try to assess how much of it is worth the attention that it is attracting.
The Indian players are bullish on the Retail business and this is not totally unfounded. There are two main reasons behind this. Firstly, it is now undeniable that the face of the Indian consumer is changing. This is reflected in a change in the urban household income pattern. The direct fallout of such a change will be the consumption patterns and hence the banking habits of Indians, which will now be skewed towards Retail products. At the same time, India compares pretty poorly with the other economies of the world that are now becoming comparable in terms of spending patterns with the opening up of our economy. For instance, while the total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India stands at less than 5%. The comparison with the West is even more staggering. Another comparison that is natural when comparing Retail sectors is the use of credit cards. Here also, the potential lies in the fact that of all the consumer expenditure in India in 2001, less than 1% was through plastic, the corresponding US figure standing at 18%.
The fact that the statistics reveal a huge potential also brings with it a threat that is true for any sector of a country that is opening up. Just how competitive are our banks? Is the threat of getting drubbed by foreign competition real? To analyze this, one needs to get into the shoes of the foreign banks. In other words, how do they see us? Are we good takeover targets? Going by international standards, a large portion of the Indian population is simply not “bankable” – taking profitability into consideration. On the other hand, the financial
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services market is highly over-leveraged in India. Competition is fierce, particularly from local private banks such as INDUSIND, HDFC and ICICI, in the business of home, car and consumer loans. There, precisely lie the pitfalls of such explosive growth. All banks are targeting the fluffiest segment i.e. the upwardly mobile urban salaried class. Although the players are spreading their operations into segments like self- employed and the semi-urban rich, it is an open secret that the big city Indian yuppies form the most profitable segment. Over-dependence on this segment is bound to bring in inflexibility in the business.
FACTORS INFLUENCING RETAIL BANKING IN INDIA:-
The number of personal loan accounts with Scheduled Commercial Banks (SCBs) in India went up by almost 50 per cent between March 2000 and March 2007, as per CMIE data. Personal loan outstanding, however, went up by more than 135 per cent during the same period. The result was that the average personal loan outstanding increased from Rs. 24,668 in 2000 to Rs. 47,000 in 2006-07. Housing Loans, which accounted for about 28 per cent of personal loans outstanding in 2000, went up to 48 per cent in 2006-07.
Total personal loans outstanding increased from Rs. 28,000 crores in 2000 to more than Rs. 88,000 crores in 2006-07. On account of these personal loans, as distinct from loans to agriculture, trade, and industry, shot up from a little more than 20 percent in 2000 to over 34.2 per cent in 2006-07. And that too over a period when total SCB outstandings shot up from Rs. 284,000 crore to Rs. Rs. 656,000 crores; an increase of more than 130 per cent. Data on Credit Cards are probably not included, given that there is no evidence that anyone, either in the RBI or in the Ministry of Finance, keeps track of credit cards. As in India credit cards have been subject for debate for so many known and unknown reasons. This, if true, is surprising news since credit cards account for a large and rapidly growing share of „money supply', which RBI closely monitors in order to keep inflationary pressures in check.
RBI's Report on Trend and Progress of Banking in India, 2006-07 reveals some new trends in growth of credit. There is an upsurge in retail credit as against corporate advances, which may reveal itself in accumulating non-performing assets in banking sector and may accentuate the indebtedness of households in the medium term.
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1.6 OBJECTIVE OF THE STUDY:-
Each research study has its own specific purpose. It is like to discover to Question through the application of scientific procedure. But the main aim of our research to find out the truth that is hidden and which has not been discovered as yet. My research study has following objectives:-
To Measure The Level of Satisfaction of Retail Banking Customers. To identify the factors which affect the customer satisfaction level in retail banks To study about the competitive position of IndusInd Bank in Competitive Market. To Study the customers perception towards the financial products of the IndusInd Bank. To Study the customers opinion towards the services provided by the IndusInd Bank. To study about the effectiveness & efficiency of IndusInd Bank in relation to its competitors. To study about whether people are satisfied with IndusInd Bank Services & Management System or not.
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1.7 SCOPE OF THE STUDY:-
The study is specific only to retail banking in India. Understand different facilities provided by the bank to the customers. To do the careful study of steps which bank takes to attract the customers. To study how bank are working for the development of the population and the economy. The study is also useful to the bank to formulate a systematic structure for providing facilities to the customers. It informs customers about banks progressive attitude towards customers. Understand the overall performance and progress of the bank. The study also relates To Customer Satisfaction and Its Related Factors. The factors studied are: Service provided by the bank. The Image or Personality of the Bank. Convenience Provided To The Customers. Pricing policies of the bank. Maintenance Of Relationship With The Customers
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1.8 LIMITATIONS OF THE STUDY :-
The overall data collected through one branch of the bank that is Mind space Branch Patna. Therefore it makes some limitations to collect the data and analyze. A customer„s perception towards the Branch is considered for study, hence the structure, other concepts of the banks are excluded for the detail study. The study is on the information collected from bank, during very short period of the case study work. So only limited data is collected and no detailed study about case is carried out. The study considered only the customers perception, so other concepts of the banks are excluded.
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CHAPTER 2 COMPANY PROFILE
2.1 INTRODUCTION OF INDUSIND BANK :-
Type: Private Bank
Founded: 1994
Headquarters: Mumbai, Maharashtra, India
Revenue: 3260.47 Crore (US$600 Million)
Owners: Hinduja Group
Industry: Banking and Financial Services
Products: Loans, Credit Cards, Savings
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OVERVIEW
IndusInd Bank was among the first new generation private sector banks that obtained a license in 1994 to drive the process of reforms in the post liberalisation era in India. Conceptualised by Srichand P. Hinduja, Chairman of the Hinduja Group, IndusInd Bank was born from his vision to use collective contributions from the worldwide non-resident Indian (NRI) community towards social and economic development of the country.
IndusInd Bank derives its name and inspiration from the Indus Valley Civilisation – a culture described as one of the greatest in the ancient world combining a spirit of innovation with sound business and trade practices. IndusInd Bank has grown ceaselessly and dynamically as an organisation driven by a sincere zeal to give its customers banking services and products at par with the highest quality standards in the industry.
The Bank believes in driving its business through technology. It enjoys clearing bank status for both major stock exchanges – BSE and NSE – and three major commodity exchanges in the country – MCX, NCDEX, and NMCE. IndusInd Bank also offers DP facilities for stock and commodity segments. The Bank has been bestowed with the mandate of being a Settlement Banker for six tea auction centres. IndusInd Bank has become one of the fastest- growing banks in the Indian banking sector today with its branch network expanding from 365 as on 31st December, 2011 to 461 as on 31st December, 2012. The Bank has approximately 852 ATMs of its own. The Bank also has two representative offices in London and Dubai.
RATINGS:
ICRA AA for Lower Tier II subordinate debt program by ICRA and ICRA AA- for Upper Tier II bond program by ICRA. CRISIL A1+ for certificate of deposit program by CRISIL. CARE AA for Lower Tier II subordinate debt program by CARE. Ind AA- for Upper Tier II bond program by India Ratings and Research and Ind A1+ for Short Term Debt Instruments by India Ratings and Research.
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Management Team
IndusInd Bank restructured its management team in the year 2008 and brought on board a seasoned team of banking professionals. Leading this team of senior management is Romesh Sobti, who joined as Managing Director (MD) and Chief Executive Officer (CEO). Sobti joined the Bank with enriching banking experience of 33 years in large state owned and multinational banks including ABN AMRO (now renamed Royal Bank of Scotland), ANZ Grindlays Bank and the State Bank of India.
All the core executive team members of the Bank hold top professional qualifications along with relevant expertise in the financial banking sector.
IndusInd Bank functions out of various Business Units that work seamlessly to ensure quality in service at every stage of its Banking operations. These Business units are:
Retail / Consumer Banking: Responsible for lending and deposits from retail customers by providing a full range of services ranging from savings accounts to wealth management and credit card. The Consumer Finance Division (CFD) extends asset-backed financing for a wide range of vehicles, spanning across heavy commercial vehicles, cars, three wheelers, two wheelers, etc. Besides, specialty construction equipments like tippers, cranes, excavators and loaders are also financed.
Corporate and Commercial Banking: Comprises of four Strategic Business Units (SBUs) viz Corporate and Investment Banking, Commercial Banking, Business Banking and the Financial Institutions and Public Sector SBUs.
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Global Markets Group: This unit has three functional verticals viz the Balance Sheet and Asset Liability Management Desk, Corporate FX Unit and the Proprietary Trading Unit, with a mix of support and business functions.
Transaction Banking: Transaction Banking provides solutions under Cash Management Services, Trade Services, Supply Chain Financing, Commodity Financing, Global Remittances and Capital & Commodity Markets.
IndusInd Bank believes in providing responsive and innovative solutions by perceiving customer needs and providing market first products and services, surpassing those provided by the best in the world.
Staying true to their pedigree, some of the unique products and services developed by IndusInd bank are:
My Account My Number: MY ACCOUNT MY NUMBER is a unique proposition which enhances the convenience and flexibility that is available in bank‟s extensive range of products. Now customers have the freedom to choose the number of their choice for the account they open with the bank. The chosen account number may be a specific pattern, a lucky number, favourite combination or just something simple to remember.
365 Days banking: no Sundays, no holidays. Select IndusInd Bank branches in the country are available to the customers, all 365 days a year.
Choice Money ATM: Get currency notes of your choice, every time you withdraw money from IndusInd Bank ATMs.
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Check-In-Cheque: This facility enables the scanned images of the cheques issued by customers to appear on their account statement with the signature masked. This helps customers to keep a perfect record of cheques issued.
Cash-On-Mobile: This facility enables customers to transfer money to anybody (including themselves) – irrespective of whether the beneficiary has an IndusInd Bank account or not – from the mobile application to the beneficiary's mobile number. Beneficiaries can withdraw funds from IndusInd Bank ATMs without using their debit or ATM card.
Direct Connect: A Phone Banking service which allows IndusInd Bank exclusive customers to speak to the Phone Banking Executive directly without going through the IVR.
Quick Redeem Service: IndusInd Bank Credit Card customers can now redeem their Reward Points on every transaction instantly by sending an SMS.
IndusInd bank targets all segment of customer with various types of products and services. I interacted with a lot of customers and collect their feedback on the given services of company, and feedback are positive response from all points of view. Bank‟s innovations ensure a delightful experience for all our customers, they also provide a bouquet of other banking services which makes them a full service banking institution. IndusInd Bank provides a wide array of products and services to its consumer and corporate clients. Some top line products for the customers are premium savings accounts, current accounts, attractive fixed deposit rates, debit card programmes with usage related benefits, children accounts, sweep in /sweep out account, EXIM accounts, NRI accounts with assist services, wide range of credit cards and loan against property. IndusInd Bank also has a strategic tie-up with HDFC Ltd. to issue home loans from its branches.
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BOARD OF DIRECTORS:-
Mr. R. Seshasayee – Chairman Dr. T. T. Ram Mohan Mr. Ajay Hinduja Mr. S. C. Tripathi Mr. Ashok Kini Mrs. Kanchan Chitale Mr. Vijay Vaid Mr. Romesh Sobti – Managing Director Mr. Y. M. Kale – Alternate Director
Corporate Office:-
IndusInd Bank Limited
8th Floor, Tower 1, One India Bulls Centre
841, Senapati Bapat Marg
Elphinstone Road, Mumbai – 400013
Maharashtra, India
Phone: +91 22 24231999
Fax: +91 22 24231998
Website: - www.indusind.com
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BRAND
IndusInd Bank has been aggressive in its brand building program since last year. As a part of the brand building exercise, the bank has taken many initiatives which have helped the brand connect up with the customers & enhance the visibility quotient. IndusInd Bank had launched its first ever mass media campaign in May-June 2009 along with its punch line “Makes you feel richer” and since then, the bank has been consistent in communication through Television, Radio, and Outdoor & print advertising.
IndusInd Bank understands its customers‟ money is not just money. It is the vehicle to realise their dreams! Hence, the bank aims to ensure that the customers‟ experience with the bank is pleasant and enriching. That they get value for their money, enabling them to lead a richer, fuller, content life... For this, the bank:
Offers a new level of banking – better services, better understanding of unique needs and better management of finances. Demystifies the banking process and makes it more accessible Apart from fulfilling traditional banking responsibilities, advises customers on how and where to use their money to get the best out of it Projects an image of being a young, energetic, modern bank with values of dynamism, confidence and progression
Further, as a banking partner, the bank also aims to help its customers discover how they can do more things with their money.
In the recent advertising campaign, the Bank reinforces its focus on Innovative banking based on the philosophy of Responsive Innovation. The bank is taking „responsiveness‟ theme to customers and reinforces its commitment to give best-of-class services in the industry.
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BUSINESS OBJECTIVES
MISSION
We will consistently add value to all our stakeholders and emerge as the Best in class in the chosen parameters amongst the comity of banks, by doubling our profits, clients and branches within the next three years.
VISION
IndusInd Bank will be:
A relevant business and banking partner to its clients Customer Responsive, striving at all times to collaborate with clients in providing solutions for their Banking needs A forerunner in the market place in terms of profitability, productivity and efficiency Engaged with all our stakeholders and will deliver sustainable and compliant returns
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COMPETITORS:-
Among the private banks ICICI & HDFC banks are the main competitor of IndusInd bank. There are different types of segment operation segment, investment and services, demat and NRI services. The competitors from the operation segment are ICICI (Industrial Credit and Investment Corporation of India), Housing Development and Financial Corporation (HDFC) etc.
ICICI Bank: - ICICI Bank was established by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary in 1954. ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95 billion (US$ 99 billion) at March 31, 2013 and profit after tax Rs. 83.25 billion (US$ 1,533 million) for the year ended March 31, 2013. The Bank has a network of 3,384 branches and 11,063 ATMs in India, and has a presence in 19 countries, including India.
HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994, after the Reserve Bank of India allowed establishing private sector banks. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in1977) of India. HDFC Bank has 1,500 branches and over 2,890 ATMs, in 530 cities in India, and all branches of the bank are linked on an online real-time basis. As of September 30, 2008 the bank had total assets of INR 1006.82 billion.
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2.2 PRODUCT & SERVICES OFFERED BY INDUSIND BANK:-
Service and banking of IndusInd bank categorized into Banking for individuals, Banking for NRIs, Banking for Business Owners, Banking for Corporate & Institutions.
BANKING FOR INDIVIDUALS:-
PREMIER BANKING ACCOUNTS DEPOSITS LOANS
Indus Exclusive for Indus Classic Sweep In-Out deposit Home Loan Individuals Savings Account Young saver deposit Personal Loan Indus Select for Indus Easy Savings Senior citizen scheme Business Loan Individuals Account
Regular recurring deposit Car Loan DEBIT CARDS Indus Privilege Savings Account INSURANCE DEMAT International Classic VISA Debit Card Indus Young Saver Health Insurance Demat A/C
International Gold VISA Indus Small Account Motor Insurance ASBA Debit Card Indus Maxima Home Insurance ASBA Maximum Platinum Savings Account Enabled VISA Debit Card Travel Insurance Branches
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PREMIER BANKING: - Experience a whole new world of banking privileges, preferential treatment & delightful rewards as part of Indus Exclusive & Indus Select.
Indus Exclusive for individuals: - Indus EXCLUSIVE - IndusInd Bank's premier banking program. Designed with top of the line privileges and offers along with their best personnel to ensure that customer experiences a whole new level of banking and beyond. Exclusivity brings with it indulgences as a way of life. This program ensures that there is no compromise on pampering you with delightful offers on products & services to make you feel truly EXCLUSIVE.
Indus Select for individuals: - A world of privileges with Indus SELECT. This program designed with an array of privileges and lifestyle offers. This premier banking program ensures that your banking experience is ever more rewarding and you feel truly SELECT.
DEBIT CARDS: - IndusInd Bank brings a suite of premium and utility debit cards with best in class features and benefits which make banking and spending a pleasure. What‟s more, the customer get rewards and redemption options like never before.
International Classic VISA Debit Card: - The IndusInd Bank International Classic VISA Debit Card ensures convenience to the customers, whether you are shopping, eating out, travelling or whatever. Add to it banks wide array of reward and redemption options and customer have an unbeatable combination.
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International Gold VISA Debit Card: - IndusInd Bank is pleased to bring its value added International Gold VISA Debit Card to their customers. This card is designed for them, to exceed their expectations at any of the VISA ATMs or Point-Of-Sale terminals, in any part of the world.
Maximum Platinum VISA Debit Card: - For exclusive customers, magnificence comes as a natural choice. To match up to their style, persona and lifestyle, IndusInd Bank presents a platinum chance to enjoy a world of exclusive privileges and luxuries with the Maximum Platinum VISA Debit Card
ACCOUNTS: - IndusInd Bank understands the need for customised banking solutions which help manage customer‟s finances better by saving their time and money. A wide range of accounts cater to the varying needs at every stage of their life, and make banking effortless.
Indus Classic Savings Account: - Presenting, IndusInd Bank Classic Savings Account. A special account that gives the best reach and access to your funds while giving you the flexibility to manage your funds between your Savings Account and Fixed Deposit without having to worry about minimum balance requirements. Benefit from the convenience of value-added services that are standard with your Indus Classic Savings Account and enhance the pleasure of your banking experience.
Indus Privilege Savings Account :- Presenting, IndusInd Bank‟s Privilege Savings Account, a privilege account with the best features which offer more value for money, while also giving you the power to save and carry out hassle-free banking.
The Indus Privilege Account gives you the following dual-advantage:
Free Indus Young Saver Account with Recurring Deposit Facility for your child
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Power-packed Transactional Account
Indus Young Saver: - Specially designed to build and secure your child‟s future. At IndusInd Bank, we understand your varied needs as a parent getting the best education for your children, saving for their future, ensuring their good health and habits – you always wish you had the time and resources to give them the best they deserve. As a Bank we feel a strong responsibility in securing your financial future. We therefore offer you a portfolio of savings and investment solutions for your child. Presenting to you the Indus Young Saver Account. A flexi recurring deposit for your child, which gives you the freedom to transfer as much you want in a month, without worrying about pre determined limits.
Indus Small Account: - Indus Small Account brings you a host of benefits with very minimum requirements. You can avail all banking facilities & services at zero balance requirement and simplified documentation.
Indus Maxima Savings Account: - Welcome to the world of Indus Maxima- our premium Savings Account offering for select customers like you. Banking is all about convenience, comfort and multitude of services. Indus Maxima offers just that - a host of premium services and exclusive banking solutions that cater to all your financial needs. With the Indus Maxima savings account, you also get your very own IndusInd Maximum Platinum Debit Card. This account comes with many exclusive privileges, discounts and offers to match your lifestyle.
BANKING FOR NRIs: - IndusInd Bank‟s range of NRI products and services offer Unmatched benefits that take care of more than just your basic banking requirement. We believe in constantly innovating and providing best-in-class products and services that make banking quicker, easier and simpler.
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ACCOUNTS DEPOSITS SCHEMES REMITTANCES
NRE Regular Savings Account NRE Fixed Deposits Telegraphic & wire transfers NRO Regular Savings Account NRO Fixed Deposits Indus speed remit RFC Account FCNR Deposits Indus fast remit RFC Deposits E- Remittance INVESTMENT & INSURANCE VALUE ADDED SERVICES Mutual Funds PREMIER BANKING Returning NRIs FOR NRIs Insurance Taxation Indus Exclusive NRI Equity trading for NRIs Program Indus NEAT Portfolio Investment schemes Indus Select NRI Program Indus ASSIST
NRE Regular Savings Account: - The NRE Regular Savings Account enables you to manage your overseas earnings with ease. The NRE Regular Savings Account has been designed to meet your specific needs as an NRI.
NRO Regular Savings Account: - The NRO Regular Savings Account enables you to manage your Indian Rupee earnings in India.
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RFC Account: - As an important step towards further liberalization of foreign exchange facilities available to individual residents, it has been decided by Reserve Bank of India to permit a person resident in India to open, hold and maintain with a licensed Bank (which is also an Authorized Dealer) in India a Foreign Currency (Domestic) Account and foreign exchange acquired from any of the sources specified as under can be kept in this account by the resident.
BANKING FOR BUSINESS OWNERS:-
Indus Prestige: - Prestige means the level of respect at which one is regarded by others. Some privileges are reserved for a chosen few, presenting our Indus Prestige Business Account offer for discerning customers like you.
As an Indus Prestige Business Account holder you will have the services of a dedicated Relationship Manager who will take care of your transaction needs. The offer comes to you with a host of other premium services and exclusive benefits.
Indus Gold Plus: - Gold in itself is precious and addition to Gold is something which IndusInd Bank can provide. We have sewed the banking requirements of businesses into a special offer for value customers, named Indus Gold Plus
It is a specialized product for the Retail Wholesalers, Showroom owners and Job Work Industries, Service Industries, Manufacturers , Exporters and Importers
Indus Gold: - Your business needs your attention and the support of the Bank for its transformation from medium to a large industry. You need to be busy with your business while your business transactions are managed by us using IndusInd‟s network of 210
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branches spread across 155 locations adding value to your business, we bring forth the best product in the industry in the SME segment.
You need to transfer and collect funds faster across cities to facilitate your business and manage working capital cycle. The solution from IndusInd is a unique product Indus Gold Current Account especially crafted for Traders, Retailers, Small & Midsized manufacturers, Hotels, travel agencies, Exporters, Importers and logistics firms
Indus Silver: - A perfect suite for your day to day business requirement, supported with an easy access to your accounts provided by IndusInd Bank. With a minimum AMB requirement of Rs. 25000/ on Indus Silver, this account help you to manage banking transactions at a minimal cost . The offer helps you to collect funds faster at our 155 locations and 210 branches spread across India
Indus Blue: - Indus Blue current account has been designed for small businesses, consultants, professionals, doctors, new businesses, small scale vendors, suppliers and dealers. Bank account with basic services, benefits of a private sector bank with efficient branch service.
Indus EXIM :- IndusInd Bank brings you INDUS EXIM Trade current account - a one-stop account that will take care of all your cross border transactions. This account gives you an extra-edge that caters to your need to succeed in today‟s challenging cross-border business environment and enhances client delight by delivering timely resolution to your needs.
Indus EsCrow: - The nature of business is changing both in pace and complexity. Within this changing environment we understand that your stakes are increasing by the day.
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The need of the hour is for a knowledgeable and neutral partner who not only understands the high risks involved in the transaction but also plays a pivotal role in safeguarding your funds or products / services thereby ensuring peace of mind.
This is where IndusInd Bank‟s expertise in Escrow Account Services for both domestic and international transaction makes the difference. Our team of experts and advisors with years of experience in handling these transactions provides world class benefits and value additions exclusively for you.
Discover the benefits of Indus Escrow Account It's safe, convenient and simple to open and operate the Escrow Services with IndusInd Bank. Discover benefits such as taking care of your book-keeping, reporting of fund flows and FOREX remittance to your Escrow Account along with greater security and comfort. And that's not all; it comes packed with features.
Indus Freedom: - We understand that a new business needs time to stabilise. During this period, we will support your initiative with a current account specially designed to accelerate your business. Introducing Indus Freedom, a prepaid Current Account which helps you to concentrate on your business and enjoy the FREEDOM of NIL balance requirements.
Indus Textile: - A successful enterprise requires constant attention and support. Partnering you in this venture, we at IndusInd Bank are pleased to present to you - Indus Textile, a current account which has been designed especially for your business needs in the Textile Industry. While you tend to your customers, leave all your Banking requirements to our team of specialised professionals, thereby giving you the freedom to grow your business and take it to the next level.
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Indus Grain Merchants: - We at IndusInd Bank are pleased to present to you - Indus Grain Merchant, a current account which has been designed especially for your business needs in the Agricultural Trading Market. While you tend to your customers, leave all your banking requirements to our team of specialised professionals, thereby giving you the freedom to grow your business and take it to the next level.
BANKING FOR CORPORATES & INSTITUTIONS:-
Corporate & Investment Banking:-
IndusInd Bank provides a wide array of commercial, transactional and electronic banking products to corporate clients in India, both large, and small and medium scale enterprises. We have innovative products designed with focused approach to suit requirements of various segments. We offer corporate banking services including working capital finance, term loans, trade and transactional services, foreign exchange and cash management services. The facilities are structured to meet specific needs of the client taking into account a client's risk profile. With our strong customer oriented approach, we have built relationships with a number of Indian companies including multinationals, well known domestic business houses and public sector companies. For more information on our corporate banking services, please contact our branch nearest you and / or click on the category of your organization.
Corporate & Investment Banking Group (C&I) is an integral and important part of the CCB which focuses on offering a wide array of banking & financial services to large domestic corporate groups, local large corporate as well as local operations of multinationals.
Our product offerings include working capital finance, trade finance, channel financing, term loans, letter of credit, bank guarantees to name a few. These products offerings are suitably tailor made based on the client requirements and its credit profile.
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Based on the in-depth industry knowledge, we endeavour to add value to your business through superior product delivery and service levels benchmarked to industry‟s best practices.
Commercial Banking:-
Recent years have seen rapid growth in the Small and Medium Enterprises (SME) sector, and an enhanced appreciation of this sector's critical role in driving economic growth. Commercial Banking Group at IndusInd currently caters to small and mid size corporates and groups spanning SMEs, Mid-markets and Emerging Corporates, which in essence form the „sweet spot‟ of the Indian economy. We have developed a strategic focus on the SME sector characterized by relationship-lending approach, deep understanding of your growing business requirements and products and services that help you manage your cash flows in a better way.
Know more about the products & services offered by us:
Fund Based Services (FB)
Working Capital Finance Short Term Finance Bill Discounting Export Credit Term Lending Buyer‟s Credit / Supplier‟s Credit Asset based financing
Non Funded Based Services
Letter of Credit Bank Guarantees Collection of Documents
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Financial Institutions & Public Sector
IndusInd Bank provides a complete range of banking products & solutions for the Financial Institutions and Public Sector Enterprises.
The FIPS group at IndusInd bank caters to the Banking needs of Public Sector Undertakings, both Central and State, along with Government Bodies and Financial Institutions like Banks, Insurance Companies, Mutual Funds and other financial intermediaries (excluding Finance companies in the Private Sector)and corporate liability accounts that have no other relationship with the bank.
The organization structure within FIPS is divided into two principal groups:
a. Public Sector Group: manages PSUs, Government Relationships and caters to the banking needs of all PSUs, for Central, State and Government Bodies (excluding Finance companies in the Private Sector). b. Financial Institutions Group: manages correspondent banking relationships with co-operative Banks, domestic commercial banks and international banks. Co-operative Banks in particular, are encouraged to leverage IndusInd bank‟s branch network, technology and product capabilities. . Domestic / International banks . Housing Finance Companies . Co-operative banks . Insurance Companies . Mutual Funds
Business Banking Group:-
At IndusInd Bank we understand how much of hard work goes into establishing a successful business. We also understand that your business is growing and very demanding. For a
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business on the growth phase with a wide range of opportunities to explore, timely availability of credit is an integral ingredient needed to scale new heights. At IndusInd Bank we understand this and endeavor to be not just a bank but also your financing partner, so that you focus on your business needs whereas we cater to your financing needs. Our services range from Funded to Non-Funded, from Short Term to Long Term and from Credit to Trade/Forex and ensure that you get finance the way and at the time it is best suited for your business.
As one of the leading private sector banks for small businesses, we have the right financial solution for each step of your growth, so when you want to upgrade your facilities or pursue an attractive growth opportunity, availability of finances will be the least of your concerns. Our specialized relationship managers understand your business requirements and help you manage your business better. We have got a wide range of product offerings which let you manage your business efficiently.
Microfinance:-
Under Microfinance program we reach out to the Un / Underserved areas through Microfinance Institutions. The average loan size at the ultimate customer is usually around INR 8K with the actual loan size varying between INR 5 - 50K. The customers are usually women. The loans are put to variety of uses ranging from agriculture, petty shop, livestock, education, high cost debt redemption, tailoring, readymade garments, consumption etc.
We set up bulk lines on the MFIs for on lending to retail customers. The wholesaling approach above helps us leverage the financial strength of the bank with the local understanding of the MFI thereby reaching the client in a cost effective manner.
In terms of products we offer
a. Term Loans for on lending to the ultimate clients b. Cash credit to help MFIs meet the liquidity position c. we also do portfolio buy outs to free up the capital for the MFis
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Government Business Group: - GBG will focus on Government Business for CASA relationship covering following customer types:
Central Government/State Government Bodies/Defense establishment li> Autonomous Bodies/Quasi Government Bodies Boards & Corporations Special Purpose Vehicles Municipal Bodies Local administrative bodies Development Corporations Govt. Sponsored Trust Academies & Institutions
Products offered:-
Tax collection services Cash management services Online Banking facilities Trade and Forex products Escrow accounts.
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CHAPTER 3 RESEARCH METHODOLGY
RESEARCH: Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. “Research is a systematized effort to gain new knowledge”. Research is an original contribution to the existing knowledge for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short knowledge through objective and systematic method of finding solution to a problem is research. Research refers to the systematic method consisting of enunciating the problem, formulating the hypothesis, collection of the facts.
3.1 TYPE OF RESEARCH:-
Descriptive Research: - Descriptive research includes fact finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. Researcher has no control over the variables of this type of research. The methodology of the study is based on primary & secondary data.
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3.2 DATA COLLECTION:-
Primary Data: Data is collected primarily through personal contact, meeting, interview and questionnaire with the concerned authority of the IndusInd Bank and respondents in the branch itself.
Secondary Data: Secondary data was collected by gathering information from concerned personnel at these firms and the rest was collected from the various journals and websites.
3.3 SAMPLING
SAMPLE SIZE & METHOD OF SELECTING SAMPLE
The sampling method so as to obtain a representative sample is the Non-probability sampling methods. Under Non-probability sampling, the question addressed the basic questions relating to the level of perception with in customers. A random sample of 100 people was taken. I selected the respondents to the survey on the basis of judgment sampling with convenience taken into account.
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CHAPTER 4 DATA ANALYSIS & INTERPRETATION
1. Do you have any bank Account?
no 0%
yes 100%
Interpretation:-
As the above pie chart shows that now almost all people have their account in bank and they prefer to save their money in the Bank.
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2. Which sector of bank do you have your Account?
Public Private Both
10%
34% 56%
Interpretation:-
As the above pie chart shows that the majority of people have their account in both i.e. Public as well as private sector bank. Here 56% customer has their account in both i.e. public and private sector bank. 30% customer has their account only with private sector bank and rest 10% customers have account in public sector banks only.
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3. In which banks do you have your bank Accounts?
100 90 80 70 60 50 40 30 20 10 0
Interpretation:-
According to the above bar graph the majority of the customers have their bank account with IndusInd bank followed by SBI, ICICI & PNB. As they are the major competitors of IndusInd bank.
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4. In case if you have your account in more than one bank then which one is your most preferred bank (Give only one bank)?______
INDUSIND BANK
100 80 60 40 20 0 1 INDUSIND BANK 100
Interpretation:-
As the above graph shows that the almost all the customers have their bank account with IndusInd bank as the data is collected in the IndusInd bank branch itself.
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5. If IndusInd then why do you prefer this Bank?
38
26 20 16
Quality & Quick Support to 365 Working Service Transaction Customers days
Interpretation:-
As the above graph shows that 38% of customer prefer IndusInd bank due to its quick transaction, 26% due to support to customers, 20% due to quality service and the rest 16% of the customers due to 365 working days facility provided by the bank.
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6. Which type of Bank Account do you have in IndusInd Bank?
Saving A/C Current A/C Loan A/C Others
4% 16%
22% 58%
Interpretation:-
From the above pie chart we can interpret that 58% of the customers have Saving A/C, 22% have Current A/C, 16% have Loan A/c and others have 4% which includes Fixed deposit, Recurring deposit A/C.
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7. For the past how many years you have account with IndusInd Bank?
More than 5 Years 18
1-5 years 52
Less than 1 years 30
Interpretation:-
According to the above bar graph 52% of customers have their bank account with IndusInsd bank since 5 years, 30% of customers have their account from less than 1 years and the rest 18% of customers have their account from more than 5 years.
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8. How did you come to know about the services provided by IndusInd bank?
36 30 22 12
Through Selling Through Through Others Agent Friends & Advertisment Relatives
Interpretation:-
According to the study the bar graph shows that 36% of the customers came to know about the service provided by the IndusInd bank through Advertisements, 30% through Selling Agent, 12% through friends and relatives and rest 22% with the help of others which includes newspaper, hoardings, banners etc.
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9. What are the facilities you are availing from IndusInd bank?
92 90
60
26
Debit/ATM Credit Card Cheque Book Internet Cards banking
Interpretation:-
As the above bar graph indicates that the Debit/ATM card facility availed by the 92 customers, 90 customers used cheque book, 60 customers used internet banking for their transactions and 26 customer holds credit card
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10. How frequently do you use Internet Banking Services for your transaction provided by IndusInd Bank?
46
28 16 10
Always Ocassionally Very Rare Never
Interpretation:-
From the above bar graph 46% of customers use Internet banking services occasionally, 28% use it on regular basis, 16% of customer uses this facility for their transactions and rest 10% customers never use it.
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11. What do you feel about the overall performance of IndusInd Bank?
42
26 24
8
Excellent Very Good Good Average
Interpretation:-
From the above bar graph we can interpret that 42% of the customers says its overall performance is very good, 26% of customers are delighted from the service provided by the bank as they rank it as excellent, 24% customers says its performance is good while rest 8% says It‟s average.
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12. Rate the following statements on the following given scale
5 Strongly Agree 4 Agree 3 Undecided 2 Disagree 1 Strongly Disagree a) The banking facilities provided by the IndusInd bank are the best in the region
42
26 20
8 4
Strongly Agree Undecided Disagree Strongly Agree Disagree
Interpretation:-
According to above graph we observe that around 42 customer says they are agree with the facilities provided by the IndusInd bank are the best in the region, 20 customers are strongly agree, 28 are undecided while 8 are disagree and 4 strongly disagree.
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b) The bank staff is very supportive
Strongly Agree Agree Undecided Disagree Strongly Disagree
10% 2%
26% 22%
40%
Interpretation:-
Majority of people says that the bank staffs are very supportive in the IndusInd bank, according to above pie chart.
c) The bank relaxes its rules to accommodate the customers’ needs
Strongly Agree Agree Undecided Disagree Strongly Disagree
10% 12% 32%
20% 26%
Interpretation:-
Most of the customers are disagree with the above statements that bank relaxes its rules to accommodate the customers‟ needs.
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d) The bank is equipped with the best infrastructural and technological facilities
52
32
12 4 0
Strongly Agree Undecided Disagree Strongly Agree Disagree
Interpretation:-
About 52 customers are strongly agree with the above statement means the bank is equipped with all the latest facilities provided.
e) Customer complaints are given immediate attention
46
28 20
6 0
Strongly Agree Undecided Disagree Strongly Agree Disagree
Interpretation:-
Most of the people are agree and strongly agree with the above statement. As the data is mentioned in the bar graph
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f) The working hours are very convenient to do the business with the bank
Strongly Agree Agree Undecided Disagree Strongly Disagree
6%
14% 20%
22% 38%
Interpretation:-
Majority of the customers are agree with the statements that the working hours are very convenient to do the business with the bank
g) There are no hidden charges for difference services that the bank provides
44 36
12 6 2 Strongly Agree Undecided Disagree Strongly Agree Disagree
Interpretation:-
According to above graph most of the customers are agree as well as strongly agree with the statement that there are no hidden charges for difference services that the bank provides
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h) Net-banking and online transactions are highly secure
42
28 24
6 0
Strongly Agree Undecided Disagree Strongly Agree Disagree
Interpretation:-
According to above graph 42 customers are agree with the above statement, 24 are strongly agree, 28 are undecided and rest 6 are disagree.
i) The rate of interest offered by the bank on different term deposit schemes are better than other banks
Strongly Agree Agree Undecided Disagree Strongly Disagree
4% 0%
18% 22%
56%
Interpretation:-
Majority around 56% of customers are agree with the above statement as the Indusind bank provides better interest rate on different term deposits.
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j) There are adequate number of IndusInd Bank ATMs
36 32 16 12 4 Strongly Agree Undecided Disagree Strongly Agree Disagree
Interpretation:-
For this statement customer‟s response are very low as there are very less amount of IndusInd bank ATMs in Patna region.
k) I’m happy that I’m a customer of IndusInd Bank
Strongly Disagree 2
Disagree 6
Undecided 8
Agree 48
Strongly Agree 36
Interpretation:-
Majority of the customers are delighted with the facilities provided by IndusInd bank as they rank Agree and strongly for the above statement.
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CHAPTER 5 FINDINGS
5.1 FINDINGS ON THE BASIS OF DATA ANALYSIS:- From the details of the study, we can enumerate the observation of the project report i.e. A study of customers perception of Retail Banking with special reference to IndusInd Bank, Patna in the form of finding as below :-
It was found from the study that bank believes in quality service rather than quantity of service. The officials employed are very much focused towards the customer satisfaction The officials try to make best relation with the customers. The marketing strategy of the bank is very attractive. The bank always tries to attract customers with innovative offers. The Interest rate provided on different term deposit schemes are better than other banks Branches of indusInd bank are well equipped with all the latest facilities There are vey less numbers of IndusInd bank ATMs.
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5.2 SWOT ANALYSIS OF INDUSIND BANK:-
STRENGHTS:-
Backing of the Hinduja group Gives importance to customer experience Offers a large variety of products and service pan India All the branches are interconnected which give the unique facility of anywhere banking. Branches of IndusInd Bank are well equipped with advanced technology to provide the customers with quicker banking services. All operations of the bank are carried on IT platform thus transaction are carried with greater efficiency.
WEAKNESS:-
Lags behind many banks in capital structure Few no. of branches across the country in comparison with leading banks Less awareness among general masses about the different services provided by the bank. High bank service charges. People‟s faith in private banks is still not very high. Minimum balance level of all the accounts are very high
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OPPORTUNITIES:-
Mobile Banking, Internet banking Expansion into rural areas to bank the unbanked and under banked. Doing aggressive marketing in order to improve brand value.
THREATS:-
New bank licenses to be issued by RBI Competitor. Foreign banks that mainly cater to their target group.
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CHAPTER 6 SUGGESTIONS
The company should adopt best marketing strategy to expansion the market. The bank should increase its branches. The bank should increase more activity rather than banking system.
Bank should establish good relationship with its customer. The bank should do more effort for increasing the awareness about the internet banking among the customers
The bank should decrease the interest rate of loan process. The bank should reduces the minimum amount of balance to maintaining the account. The bank should increase its ATMs. The bank should focus on promotions & advertisements of the bank. Bank should provide training to their employees about new and emerging technology in the banks.
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CHAPTER 7 CONCLUSION
Thus, IndusInd Bank has been able to use technology to provide value-added service to its customers during the last few years. For IndusInd, technology is an integral part of their business. However, their overall progress could have been smoother but for certain internal and extraneous factors and also a pressure on spread due to a competitive market. E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. No country today has a choice- whether to implement E-banking or not given the global and competitive nature of the economy. IndusInd have top grade and constantly think of new innovative customized packages and services to remain competitive. The invasion of banking by technology has created an information age and commoditization of banking services. IndusInd have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. Without any doubt, the international scope of E-banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes.
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