1.

Industry Overview

1. Overview
The Indian Banking Industry can be categorized into
scheduled banks and non-scheduled banks. Scheduled banks
constitute commercial banks and co-operative banks. There
are about 67,000 branches of Scheduled banks spread across
India. As far as the present scenario is concerned the Banking
Industry in India is going through a transitional phase.
The
Public Sector Banks (PSBs), which are the base of the Banking
sector in India account for more than 78% of the total
banking industry assets.
The growth of banking in the coming years is likely to be
more qualitative than quantitative. The pace of expansion in the balance-sheets of banks
is likely to decelerate.
Government policy is expected to allow greater FDI in
banking and the move to amend Banking regulations Act
aimed at removing the existing 10%t cap on voting rights of
shareholders is pointer to these developments

Revenue

SCBs continued to perform robustly during FY08 owing to an encouraging

macroeconomic environment. Even though SCBs’ credit growth was moderate, because
of RBI’s policy initiatives, their deposit growth was impressive; but fall in term deposits
made the growth tad lower than previous year’s growth. Owing to strong deposit growth
and moderate credit growth, SCBs’ credit deposit ratio declined.

Growth Drivers and Potential

1. Increasing emphasis by banks on fee-based services to boost income growth.
 2. Favourable demographics and rising income levelsRising literacy rate, specially
in rural India, has increased the need for banking.
i. Between 2006 and 2026, the working population (25–60 years) is
expected to increase from 675.8 million to 795.5 million giving
rise to a favourable market for banks.
ii. Projected per capita GDP is expected to increase from US$ 380.8
in 2000–01 to US$ 2,097.5 in 2026, reflecting higher disposable
income

3. Conducive banking environment with well-capitalised banks provides a base to

meet the growing need for banking services. India has a well-balanced mix of public
and private sector banks. While public sector banks provide stability to the banking
system in the country, private sector banks add the necessary dynamism to it

4. Large amount of money is remitted by non-resident Indians (NRIs), one of the

largest diasporas in the world.

Cost Structure

cost structure of banking industry

80
Interest
60 expences
staff cost
40
operating exp
20
p&c
0
JFM 10(E) JFM09(A) prov. for tax

The interest expenses for the company constitute the highest

expenditure in the cost structure. Operation expenses costs around
30% of the operation income during the period. The staff expenses has
been marginally increasing in the recent quarters. The tax charge is
around 6 to 8% of the total income and recently it is seeing a falling
trend. Rest all expenses of the company is maintained in the same
level in the year 2010. The cost structure of the company is expected
to see changes in coming years

BANKS OP. OTHER OP. INTERES ADMIN PBT TAX PAT

INC INCOME EXP. T . EXP.
PAID
SBI 100 17.76 25.76 65.23 9.85 26.78 7.58 13.7
5
BOI 100 17.13 21.41 65.77 8.00 29.96 5.47 16.2
6
PNB 100 14.00 17.70 61.20 7.46 28.08 8.74 14.3
6

INDUSTRY INSIGHTS

The total Assets of 77 SCBs rose by more than double to Rs 43,264.9 bn during FY08, as
compared to the asset base of Rs 19740.2 bn in FY04. During FY08, the total asset base
of the SCBs was equivalent to 91.8% of India’s GDP, as compared to 62.7% of GDP in
FY04. Public Sector Banks (PSBs) dominate the banking industry with a contribution of
close to 69.9% to total assets, followed by private sector banks which account for around
21.7% of total assets.
2. Indian Scenario

Major Players & Current Developments:-

State Bank Of India :-

State Bank of India (SBI) is India's largest commercial bank. It has a vast domestic
network of over 10000 branches and commands one-fifth of deposits and loans of
all scheduled commercial banks in India. It includes a network of eight banking
subsidiaries and several non-banking subsidiaries offering merchant banking
services, fund management, factoring services, primary dealership in government
securities, credit cards and insurance. The origins of State Bank of India date back to
1806 when the Bank of Calcutta was established. In 1921, the Bank of Bengal and two
other Presidency banks were amalgamated to form the Imperial Bank of India. In 1955,
the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank
of India and the State Bank of India came into existence by an act of Parliament as
successor to the Imperial Bank of India. Presently State Bank of India has spread its arms
around the world and has a network of branches spanning all time zones. SBI's
International Banking Group delivers the full range of cross-border finance solutions
through its four wings - the Domestic, Foreign Offices, the Foreign Department and the
International Services division

Current Developments

General Motors (GM) India Ties Up With State Bank of India-Business

Line
Thursday, 17 Dec 2009 Business Lines reported that General Motors (GM) India
announced a tie-up with State Bank of India to provide financing for its vehicles
both at wholesale and retail levels. According to the agreement, GM India and SBI
will promote schemes offering easy finance options to their customers by
leveraging the pan-India presence of State Bank of India.

State Bank of India To Launch $4.2 Billion Rights Issue-Reuters

Wednesday, 9 Jun 2010

Reuters reported that State Bank of India expects to launch a INR200 billion ($4.2
billion) rights issue in the second half of 2010/11.

Bank Of Baroda

Bank of Baroda (BoB) provides banking and financial services to the

individual, business, and corporate customers in India and internationally. Its
solutions include personal banking, which includes deposits, retail loans,
credit cards, debit card, lockers and other services.
Business banking comprises deposits, loans and advances, services and lockers; corporate
banking includes cash management and remittances, multi-city cheques, appraisals and
merchant banking; international business includes import finance, international treasury,
export finance, correspondent banking and other solutions; treasury banking comprises
domestic operations and forex operations, and rural banking, which includes retail loan,
small businesses and small scale industries. As of 2008, the company operated a network
of 2800 branches in India. It also operates approximately 73 overseas branches in 25
countries

Current Developments
Dubai Multi Commodities Centre Authority and Bank of Baroda Sign
Memorandum of Co-Operation Agreement
08/18/2010
Dubai Multi Commodities Centre Authority (DMCC) and Bank of Baroda have signed a
memorandum of co-operation which will see the bank offer financial services to
companies licensed by DMCC. The companies will have access to a wide suite of
financial products and services provided by the bank, including borrowings for property
purchases in the Jebel Ali Free Zone, working capital, long-term trade and commodity
financing and other services. DMCC and the bank will also share knowledge through
seminars, workshops and exchange of visits.
Bank of Baroda Reports Unaudited Earnings Results for the Quarter Ended June
30, 2010
07/29/2010
Bank of Baroda reported unaudited earnings results for the quarter ended June 30, 2010.
For the quarter, the bank reported interest of INR 47,269.6 million and total income of
INR 53,442 against interest of INR 40,321.1 million and total income of INR 47,351.5
million a year ago. Profit from ordinary activities before tax was INR 12,765.4 million
against INR 10,488.9 million a year ago. Net profit from ordinary activities was INR
8,591.6 million against INR 6,853.8 million a year ago. Basic and diluted EPS before and
after extraordinary items, net of tax expenses was INR 23.59 against INR 18.82 a year
ago. Net interest income of the bank rose 54.2% to INR 18,579.9 million.
Bank of Baroda to Unveil Online Banking Services
07/29/2010
Bank of Baroda will launch its online Internet banking services, enabling online instant
transactions. Bank of Baroda, which is working with the objective of becoming the 'most-
preferred bank' in the UAE, is expected to launch a mobile customer service centre soon.
The bank foresee a 50% growth in business during this financial year which would mean
that would in fact be pumping approximately AED 5 billion into the UAE economy.

ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$
81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for
the year ended March 31, 2010. The Bank has a network of 2,035 branches and about
5,518 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of
banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialised subsidiaries in the areas of
investment banking, life and non-life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches
in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China,
South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The UK subsidiary has
established branches in Belgium and Germany. ICICI Bank's equity shares are listed in
India on Bombay Stock Exchange and the National Stock Exchange of India Limited and
its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

Current Developments

ICICI Bank Limited And Dish TV Launch Banking Interactive Service-Economic

Times
Tuesday, 7 Oct 2008

The Economic Times reported that ICICI Bank and Dish TV launched interactive
banking service, ICICIATIVE, that would enable subscribers to access information on
the bank's products and services from their home. Through ICICIACTIVE, Dish TV
viewers would get information about various types of ICICI Bank accounts and deposits.

ICICI Bank Limited And Singapore Airlines Ltd. Announces Launch Of Co

branded Credit Card-Business Standard
Tuesday, 31 Mar 2009

Business Standard reported that ICICI Bank Limited in association with Singapore
Airlines Ltd. launched the co branded ICICI Bank Singapore Airlines Visa Platinum Card
in the Indian market.

ICICI Bank Limited Board Approves Merger Of Bank of Rajasthan Limited

Monday, 24 May 2010

ICICI Bank Limited announced that the Board of Directors of the Bank at its meeting
held on May 23, 2010, has approved the Scheme of amalgamation of Bank of Rajasthan
Limited with ICICI Bank Limited. The Company has been decided to convene an
Extraordinary General Meeting on June 21, 2010, to seek the approval of the Members to
the Scheme of Amalgamation of The Bank of Rajasthan with ICICI Bank.

Government Regulations
The Finance Ministry continuously observe and formulate major policies of the financial
sector of the country. The Government accepted the important role of regulators. The
Reserve Bank of India (RBI) has become totaly independent. Securities and Exchange
Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA)
became important institutions. Opinions are also there that there should be a super-
regulator for the financial services sector instead of multiplicity of regulators.

Branch Authorisation Policy The RBI announced a new Branch Authorisation Policy
in September 2005 underwhich certain changes were brought about in the authorisation
process adopted by the RBI for the bankbranches in the country. As against the earlier
system, where the banks approached the RBI, piece meal,through out the year for branch
authorisation, the revised system provides for a holistic and streamlined approach for the
purpose, by granting a bank-wise, annual aggregated authorisation, in consultation and
interaction with each applicant bank. The objective is to ensure that the banks take an
integrated view of their branch- network needs, including branch relocations, mergers,
conversions and closures as well as setting up of the ATMs, over a one-year time
horizon, in tune with their own business strategy, and then approach the RBI for
consolidated annual authorisations accordingly.

Income recognition

Income recognition is based on objective criteria of record of recovery rather than on any
subjective considerations. In line with international practice, income on non performing
loans (NPLs) is recognised on a cash basis. Since March 31, 2004, Indian banks have
migrated to the more stringent 90-day norm from the 180-day norm for recognising NPL,
barring crop loans, where NPLs are recognised if interest or instalment of principal
remains overdue for one or two crop seasons depending on the type of crop. When a
credit facility is classified as a NPL, the interest, fee, commission and other income that
have been accrued on the facility but not realised have to be reversed. Loans with
collateral of term deposits and life insurance policies may not be treated as NPL if
adequate margin is available. Since August 2004, the invocation of guarantee has not
been necessary for the classification or provisioning of state government guaranteed
loans.

Restructuring or rescheduling of principal instalments would not change the category of

the asset. If the interest is rescheduled, the present value of the sacrifice has to be
accounted by debiting from income. A restructured NPL is eligible for upgrade to a
standard category only after one year from the first payment of the restructured interest or
principal instalment, subject to satisfactory performance during the period. Fees and
commission earned by banks as a result of re-negotiations or rescheduling should be
accrued over the rescheduled period.

Classification of non performing loan

With effect from March 31, 2005, RBI reduced the time frame within which banks have
to classify NPLs as doubtful to 12 months from 18 months. Banks must now classify their
loans into four broad categories on the basis of the following criteria:

• Standard assets: performing loans without any unusual risk

• Sub-standard assets: loans that have remained as a NPL for a period of less than 12
months

• Doubtful assets: loans that have remained as a NPL for a period of more than 12 months
• Loss assets: loans that are uncollectible and have a little or no recovery value

In addition, the RBI also expects that the banks should formulate policies for classifying
a standard asset in the 'special mention' category if the asset exhibits potential weakness.

OUTLOOK FOR THE SECTOR

Banks today have a limited cushion (lower unrealized gains) on their G-Sec portfolio to
protect themselves from any adverse movement in interest rates. Higher adverse impact
on the non-interest income for public sector banks in case of rise in bond yields as banks
would get impacted more by the provisioning requirements on the investments portfolio.
At the same time, any significant tightness on the liquidity front is expected to adversely
impact the interest margins and consequently the profitability of the private sector banks
given their general higher reliance on wholesale funds. Consequently, banks could see
some volatility in the overall profits depending on the movement in the interest rates.
The introduction and adherence to the base rate by banks from April 2010 could help
banks partially off-set any pressure on their profitability. The banks are expected to
maintain the operating expense under control though there could be some adverse impact
of the wage hikes and superannuation liabilities, especially for the public sector banks.
For the Banking Sector as a whole, rising interest rates, consistent with the imminent
revival in GDP growth and rising inflationary expectations, are not negative and would
be outweighed by an acceleration in core earnings growth, as Credit growth and Fee
Income picks up, while NPA losses trend downwards (for private banks to begin with,
and for PSU banks 3-4 quarters hence). In a rising interest rate environment, banks with a
strong CASA ratio and a lower duration investment book are relatively better
placed (from an ALM standpoint). Banks such as HDFC Bank, and SBI top this list,
followed by other large private banks like Axis Bank and ICICI Bank who have at least
strength in CASA deposits. In 2HFY10, as the confidence in economic recovery begun to
increase, the RBI began to exit the accommodative stance it had adopted during the crisis
period by raising key policy rates. We expect further monetary tightening in 1HCY10, as
taming inflation remains a key focus area.

3. MAJOR PLAYERS

Comparison of growth rates

BANK JFM 09 JFM 10 % GROWTH

KOTAK 8.03 10.75 33.86
ANDHRA 15.07 17.08 13.36
AXIS 30.39 29.88 -1.67
SIB 4.73 5.57 17.86
HDFC 42.51 40.53 -4.65
ING 6.10 7.74 26.99
SYNDICATE 25.12 30.78 22.55
ICICI 75.30 58.27 -22.61
CANARA 46.54 47.97 3.07
BOI 44.93 58.67 30.85
PNB 54.23 74.84 42.75
SBI 173.42 213.36 23.03

MARKET SHARE

TOTAL TOTAL NET TOTAL BRANCHE

DEPOSIT ADVANCE PROFI ASSET S
 S S T S
SBI 4,355.21 3,373.36 45.41 5,665.65 10,186
ICICI 2,305.10 1,958.66 31.10 3,453.12 1,400
PNB 1, 398.60 1,990.48 20.48 1,990.48 4,500
HDFC 1,007.69 634.27 15.90 1,332.51 1,412
BOB 1,520.34 1,067.01 14.35 1,795.997 2,800

Trend of Revenue

State Bank Of India

07-08 06-07 05-06 04-05

Op. Inc 489503.1 394910.3 357949.3 324280.0
0 0 0 0
Inc. on 119441.60 114929.90 139775.30 160276.70
Invst.
Other Inc. 86949.30 57692.50 73886.90 71199.10
CAR% 13.47 12.34 11.88 12.45
NPM% 13.75 11.50 12.31 13.27
Interest 319290.80 234368.20 201592.90 184833.80
Exp.
Interest 12000.80 27196.10 17609.70 17870.40
on
Balances
PAT 67291.20 45413.10 44066.70 43045.20

ICICI Bank

07-08 06-07 05-06 04-05

Op. Inc 307883.40 229942.90 137844.90 94099.00
Inc. on 74660.10 59885.40 36927.60 22294.40
Invst.
Other 88107.70 59291.70 49831.40 34161.40
Inc.
OPM% 20.10 20.31 24.99 23.05
NPM% 13.50 13.53 18.43 21.31
Interest 234842.40 163585.00 95974.50 65708.90
Paid
PAT 41577.30 31102.20 25400.70 20052.00

Bank Of Baroda

07-08 06-07 05-06 04-05

Op. Inc 118,134.70 92,126.40 71,000.00 64,314.10
Op P/L 30,285.50 24,150.10 20,318.50 23,019.10
OPM% 25.64 26.21 28.62 35.79
NPM% 12.15 11.14 11.65 10.52
Interest 79,016.70 54,265.60 38,750.90 34,521.50
PAT 14,355.20 10,264.70 8,269.60 6,768.40

Axis Bank (UTI Bank)

04-05 05-06 06-07 07-08

Op. Inc 23999.80 36184.20 55705.10 88008.00
OPM% 23.57 27.47 24.46 18.71
NPM% 13.94 13.41 11.83 12.17
Interest 11929.80 18105.60 29933.20 44199.60
PAT 3345.80 4850.80 6590.30 10710.30

Kotak Mahindra Bank

04-05 05-06 06-07 07-08

Net Sales 5523.82 9369.54 42971.2 75493.91
OPM% 24.09 22.47 21.72 23.46
NPM% 15.37 12.62 12.21 12.70
Interest 1948.23 3390.89 9764.28 18164.7
PAT 848.9 1182.31 5244.8 9587.26

7 Ps in Banking-
Product Mix:-
The banks primarily deal in services and therefore, the formulation of product mix is
required to be in the face of changing business environment conditions. Of course the
public sector commercial banks have launched a number of policies and programs for the
development of backward regions and welfare of the weaker sections of the society but at
the same time it is also right to mention that their development-oriented welfare programs
are not optimal to the national socio-economic requirements. A proportional contraction
in the number of customers is found affecting the business of public sector commercial
banks. The changing psychology, the increasing expectation, the rising income, the
changing lifestyles, the increasing domination of foreign bans and the changing needs
and requirements of the customers at large make it essential that they innovate their
service mix and make them of worked class. The development of new generic product,
especially when the business environment is regulated is found a difficult task. However,
it is pertinent that banks formulate a package in tune with the changing business
conditions. Against this background, we find it significant that the banking organizations
minify, magnify, combine and modify their service mix.

PROMOTIONAL MIX:
Promotion mix includes advertising, publicity, sales promotion, word – of – mouth
promotion, personal selling and telemarketing. Each of these services needs to be applied
in different degree. These components can be useful in the banking business

PRICE MIX:
In the formulation of marketing mix, the pricing decisions occupy a place of outstanding
significance. The pricing decisions include the decisions related to interest and fee or
commission charged by banks. Pricing decisions are found instrumental in motivating or
influencing the target market. The RBI regulates the rate of interest and the Indian Banks’
Association controls other charges. In our country, the price mix is more important
because the banking organizations are also supposed to sub serve the interests of the
weaker sections and the backward regions. Also in making the pricing decisions, the
Government Of India instrumentalists or commands everything as a shadow policy
maker. This also complicates the price mix for banking sector.

THE PEOPLE
Sophisticated technologies no doubt, inject life and strength to our efficiency but the
instrumentality of sophisticated technologies start turning sour id the human resources are
not managed in a right fashion. We can’t deny the fact that if foreign banks are
performing fantastically; it is not only due to the sophisticated information technologies
they use but the result of a fair synchronization of new information technologies and a
team of personally committed employees. The moment they witness lack of productive
human resources even the new generation of information technologies would hardly
produce the desired results. In addition to the professional excellence, the employees
working in the foreign banks are generally value- based. Thus we accept the fact that
generation of efficiency is substantially influenced by the quality of human resources.
THE PROCESS
Flow of activities: all the major activities of banks follow RBI guidelines. There has to be
adherence to certain rules and principles in the banking operations. The activities have
been segregated into various departments accordingly.
Standardization: banks have got standardized procedures got typical transactions. In fact
not only all the branches of a single-bank, but all the banks have some standardization in
them. This is because of the rules they are subject to. Besides this, each of the banks has
its standard forms, documentations etc. Standardization saves a lot of time behind
individual transaction.
Customization: There are specialty counters at each branch to deal with customers of a
particular scheme. Besides this the customers can select their deposit period among the
available alternatives.
Number of stores: numbers of steps are usually specified and a specific pattern is
followed to minimize time taken.
Simplicity: in banks various functions are segregated. Separate counters exist with clear
indication. Thus a customer wanting to deposit money goes to ‘deposits’ counter and
does not mingle elsewhere. This makes procedures not only simple but consume less
time. Besides instruction boards in national boards in national and regional language help
the customers further.
Customer involvement: ATM does not involve any bank employees. Besides, during
usual bank transactions, there is definite customer involvement at some or the other place
because of the money matters and signature requires.

THE PHYSICAL EVIDENCE

The physical evidences include signage, reports, punch lines, other tangibles, employee’s
dress code etc. The company’s financial reports are issued to the customers to emphasis
or credibility. Even some of the banks follow a dress code for their internal customers.
This helps the customers to feel the ease and comfort
Signage: each and every bank has its logo by which a person can identify the company.
Thus such signages are significant for creating visualization and corporate identity.
Tangibles: banks give pens, writing pads to the internal customers. Even the passbooks,
chequebooks, etc reduce the inherent intangibility of services.
Punch lines: punch lines or the corporate statement depict the philosophy and attitude of
the bank. Banks have influential punch lines to attract the customers.

Bank of Baroda

Products & Services:-

 Retail Banking , Rural/Agri Banking, Wholesale Banking , SME Banking ,

Wealth Management , DematProduct , EnquiryInternet , Banking , NRI
Remittances etc
Price:-
The pricing decisions or the decisions related to interest and fee or commission
charged by banks are found instrumental in motivating or influencing the target market.
The RBI and the IBA are concerned with regulations. The rate of interest is regulated by
the RBI and other charges are controlled by IBA. The pricing policy of a bank is
considered important for raising the number of customers’ vis-à-vis the accretion of
deposits. Also the quality of service provided has direct relationship with the fees
charged. Thus while deciding the price mix customer services rank the top position.
The banking organizations are required to frame two- fold strategies. First, the strategy is
concerned with interest and fee charged and the second strategy is related to the interest
paid. Since both the strategies throw a vice- versa impact, it is important that banks
attempt to establish a correlation between two. It is essential that both the buyers as well
as the sellers have feeling of winning.

Baroda Home Loan to Individuals / NRIs / PIOs Fixed Rate optionRepayment

Period Up to Rs. 30 Lacs Above Rs. 30 Lacs Upto 5 years 9.50% 10.25% Over 5 years
& up to 10 years 9.75% 10.50% Over 10 years & up to 15 yrs 10.00% 10.75% Floating
Rate option Repayment Period Up to Rs. 30 LacsAbove Rs. 30 Lacs and upto Rs. 50
Lacs Above Rs. 50 Lacs Up to 5 years 3.50% below BPLR i.e. 8.50% 2.75% below
BPLR i.e. 9.25% 2.25% below BPLR i.e. 9.75% Over 5 years up to 15 years 3.25%
below BPLR i.e 8.75% 2.50% below BPLR i.e. 9.50% 1.75% below BPLR i.e. 10.25%
Over 15 years up to 25 years 3.00% below BPLR i.e.9.00% 2.25% below BPLR i.e.
9.75% 1.50% below BPLR i.e. 10.50%

Place
The nearest branch from our institution is Bank of Baroda, Baroda Tower, GN
Block, Plot-38/2 , Salt Lake Sec V , Kolkata – 700091
The Bank of Baroda has good location across the country. Bank of Baroda has an
extensive network of 3082 branches spanning the length and breadth of the country.
There is a branch in the vicinity of everyone in need of a banking solution.
With a customer centric approach of being operational 24 hours a day, across 25
countries, the bank branches are the last door you will have to knock while on the
lookout for an answer to your queries.

Promotion:
Promotion is nothing but making the customer more and more aware of the services and
benefits provided by the bank. Bank of Baroda uses a lot of new technology to
communicate to their customers. Two of the fastest growing modern tools of
communicating with the customers are:

1. Internet Banking
2. Mobile Banking

Television advertisements , newspapers , magazines etc also are used .

People:
Bank of Baroda has always had an immense faith in the infinite potential of its people.
This has been historically demonstrated in its recruitment practices, developmental
initiatives, placement processes and promotion policies. Strategic HR interventions like,
according cross border and cross cultural work exposure to its managers, hiring diverse
functional specialists to support line functionaries and complementing the technical
competencies of its people by imparting conceptual, managerial and leadership skills,
gave the Bank competitive advantage. The elaborate man management policies also made
the Bank a breeding ground for business leaders. The Bank provided around a dozen
CEOs to the industry- men who went on to build other great institutions. People
initiatives were blended with IR initiatives to create an effectively harmonious
workplace, where everyone prospered.

Process:
Bank of Baroda follows the allotment of lockers process in the following manner:

1. The lockers are allotted on first come first served basis to the customers only. A
waiting list register is maintained by the branches for the purpose.
2. At the time of hiring the locker, bank will obtain a Fixed Deposit under bank’s
lien which would cover 3 years rent and the charges for breaking open the locker
in case of an eventuality.
3. The hirer of the locker will be provided the copy of the agreement i.e.
‘Memorandum of Letting’ by the bank.
4. Loss of key should be immediately informed to the Branch.
 5. With standing instruction, the rent may be paid from the deposit account of the
hirer on due date.
6. Where the lockers have remained un-operated for more than three years for
medium risk category or one year for a higher risk category, the bank may ask the
Renter/Lessee to either operate the locker/give valid reason for not operating the
same or surrender the locker even though the rent is paid regularly. In case the
Renter/Lessee does not respond nor operate the locker, the bank would have the
right to cancel the allotment of the locker and may consider break opening the
lockers after giving due notice to the Renter/Lessee.

Physical Evidence:

Physical evidence is the overall layout of the place i.e. how the entire bank has been
designed. Physical evidence refers to all those factors that help make the process much
easier and smoother. For example, in case of Bank of Baroda, the physical evidence is the
placement of the customer service executive’s desk and the location of the place for
depositing cheques. It is very necessary that the place be designed in such a manner so as
to ensure maximum convenience to the customer and cause no confusion to him. Mostly
nationalized banks fails to provide maximum convenience to customers when compared
to private banks

Major Offerings

BoB Cards:- (Bank Of Baroda)

BOBCARDS Ltd,a wholly owned Subsidiary of Bank of Baroda.The Company is in
the business of Credit Cards, Debit Cards & Forex Operations. 100% subsidiary of Bank
of Baroda, one among the pioneers in Indian card market.The company is in the business
of Credit cards, forex operations & Debit cards. Bank of Baroda had introduced its first
charged card named BOBCARD in the year 1984. The whole operation of this plastic
card was managed by Credit card division of Bank of Baroda.
Verified by Visa (VBV) is an easy to use, secured online payment service from
BOBCards that lets you shop securely online with your existing BOBCards Visa Credit
Card. This service through a simple checkout process, confirms your identity when you
make purchases on the Internet.
MasterCard® SecureCode™ is an easy to use, secured online payment service from
BOBCards that lets you shop securely online with your existing BOBCards MasterCard
Credit Card. This service through a simple checkout process, confirms your identity when
you make purchases on the Internet.

Through a personal assurance message displayed on the screen and which is shared only
between you and the BOBCards, the authenticity of the page requesting your
authentication is assured. We suggest you to keep changing your password at regular
intervals for increased safety.

SHG MOVEMENT – A MISSION: State Bank of India

SBI has taken up SHG movement as a mission. A noble mission to reach those families
who were hitherto having no access to the credit by any formal financial institution and,
therefore, were depending on informal sources and moneylenders.
SBI has actively participated in SHG-Bank Credit Linkage programme since its inception
in 1992 as a pilot project of NABARD. Since then the Bank has made a steady progress
in financing SHGs. As on March 2006, SBI’s branches spread throughout the length and
breadth of the country have opened 6,30,067 Savings Bank account of SHGs out of
which more than 5.41 lacs SHGs have been provided with credit facilities thus benefiting
more than 75 lacs poor people. Majority of these SHGs are women SHGs.
SBI is maintaining its position as a leader among Commercial Banks in credit linking of
SHGs and is a prime driver for the movement. As at the end of March 2006, SBI with a
share of approximately 47% of total SHGs financed by Commercial Banks is far ahead of
others.

ICICI Bank ( Rural Savings Account)

Features

• The Rural Savings Account will be available through Business Correspondents.

• The account is zero balance with no initial deposit.
• The Customer is provided with an E-passbook.
• All transactions in the accounts are done only after a biometric authentication.
 • Nomination facility is available.
• Interest is payable half-yearly.

Nomination Facility

• Nomination facility available for bank deposits.

• There can be only one Nominee for a deposit account whether held singly or
jointly.
• A person legally empowered to operate a minor's account can file a nomination on
behalf of the minor.
• Applicants can make nomination by filling up the Form prescribed under the
Banking Companies (Nomination) Rules 1985.
• The nomination details can be changed during the subsistence of the account
relationship by filling up the Form prescribed under the Banking Companies
(Nomination) Rules 1985.

Axis Bank Silver Health (Personal Insurance)

Health care costs are high and getting higher. As the age of an individual increases the
health care costs increase manifold and become a burden on the individual. Senior
citizens have to pay out of their hard earned savings to meet the expenses. Bajaj Allianz's
Silver Health Plan for senior citizens protects you and your spouse in case you need
expensive medical care. You get cashless benefit or medical reimbursement for
hospitalization expenses due to illness or accidents.

Coverage:

• Hospitalization expenses and an amount equivalent to 3% of admissible

hospitalization expenses in respect of any and all pre and post hospitalization
expenses.
• Ambulance charges in an emergency subject to a limit of Rs 1,000.
• Pre-existing illnesses are covered from the second year of the policy.
• The company's liability in case of any pre-exiting illness from the second year of
the policy would be restricted to 50% of the limit of indemnity in a policy year.
• The policy has a lifetime indemnity limit of three times the limit of indemnity
specified in the earliest senior citizen plan, if the policy is renewed continuously.
Kotak Edge Salary Account (Kotak Mahindra Bank)

A savings avenue that makes the most of the hard-earned money. Kotak Edge Salary
Account, armed with Kotak ActivMoney and our entire gamut of Banking Privileges. The
feature rich Kotak Edge Salary Account is the ideal way to make your money work
harder.

ActivMoney
Kotak Edge Salary Account combines liquidity of a Savings Account with the attractive
returns of a Term Deposit through the unique Kotak ActivMoney benefit.

Kotak Advantages
Experience the 'edge' while banking through a host of advantages offered by your Kotak
Edge Savings account.

Free At-par Cheques , Free Cheque Collection , Free Electronic Fund Transfer , Free
Demand Drafts, Free Demat Account , Reimbursement Current Account , Free
Investment Account , etc

Brand Positioning

State Bank Of India

Promotion campaign , rationally explaing why SBI is better than other banks.
The bank has taken the positioning of Pure Banking emphasizing that SBI does what it
does best : Pure banking. The bank has now took the tagline" Pure Banking , Nothing
else" takes a dig at new generation banks that spent lot of time doing non banking
financial services.
A new TVC is also running which shows a young guy getting impressed by the services
offered by SBI which is his old parent's bank. The recent print and tvc is aimed at
shedding the " old public sector bank" image of SBI and make it more relevant to the
young customers. The bank is now running a mix of Rational, Humor and emotional
advertisement to promote the bank. Laudable and Surprising.

Bank Of Baroda…

Change of Logo:- BOB appointed Gartner Consulting in April 2001 to assist the bank in
assessing the situation, developing a new business strategy and in enabling an IT strategy.
The Gartner report revealed that the bank had a complex symbolic logo and its tagline
was more focused on the primary and secondary activities of the economy. These facts, in
addition to a serious lack of consistency in displaying or reproducing it, in terms of
colors, designs, layouts, typefaces and text, could be the reason for the low unaided
recognition of the logo among both consumers and non-consumers. Roger Tuvy, a
Gartner analyst, said that the bank needed to improve its marketing efforts.
Gartner also suggested a new re-positioning strategy revolving around taglines like
“Baroda: same (PSB) strengths, but with a new commitment to customers”;
“Baroda: the superior PSB brand, with a new feel for customer service”; “Baroda:
responsible lenders for your future”.
The top management of BOB commenced interventions relating to HR, organization
structure and business processes and took up branding as part of a holistic transformation
to reposition the bank. An open tender was held and bids were invited for the selection of
a brand design consultant. Ray & Keshavan, Bangalore-based brand consultants, were
chosen to develop a new logo. Ray & Keshavan proposed the idea of a vermilion colored
‘Baroda Sun’ and BOB’s Board of Directors approved it in late 2004.
The Baroda Sun – The Intended Significance
· The sun is one of the most recognizable symbols the world over and it nurtures life.
· The morning sun is symbolic of change; a change from night to day.
· The sun’s five rays symbolize the global presence of BOB, in the sense that the rays fall
across the five continents of the world.
· The vermilion color symbolizes loyalty in India, where married Hindu women wear it
on the forehead as a mark of loyalty to their husbands.
· The Baroda Sun is at an angle, to represent the dynamic nature of the bank.
For the first time in the bank’s history, it was decided that the bank should have a brand
ambassador. BOB believed that it had found the ‘perfect match’ in Rahul Dravid. Firstly,
just as BOB had been a financially secure bank since its inception, Rahul Dravid was also
perceived to be a player of consistent and dependable quality in the Indian cricket team.
Secondly, Rahul Dravid was never involved in any controversies, personal or
professional. Thirdly, the essentially male customer base of the bank could better relate
to Rahul Dravid compared to Sushmita Sen, who was considered too up-market for
BOB’s consumers. Finally, Rahul Dravid is an international star and is a well-known
personality across the cricket-playing nations of the world.
This international status of Rahul Dravid was in line with the new positioning strategy of
BOB.
The contract with Rahul Dravid, worth about INR 50 million, was signed in April 2005
for a period of three years and three month Khandelwal wrote a letter to all the 40,000
BOB employees explaining to them the necessity of re-branding the bank and changing
the logo. A house journal, Bobmaitri, especially devoted to this theme, was published
and circulated internally.

ICICI Bank

To dominate customers mind in the Indian markets, Amitabh Bachhan was chosen as the
brand ambassador , complementing the brand values of :-

Towering personality, perceived as trustworthy, impeccable lineage.

In 2006 , ICICI Bank signed Shahrukh Khan as the global brand ambassador , this was
done for reaching out to the global Indian.

ICICI Lombard:
1) Very Simple Strategy by tapping the rural market against the urban market.
2) Tie ups with various dairy companies and banks.

ICICI Prudential:
1) Launching of new policies which guaranteed income at very low risks.
2) Continuation of life insurance policies which offered insurance also in the scenario
where there was break in the premium.

3) Feel good factor for the strata of the people nearing retirement.

ICICI Home Loan:

1) Higher income savings for people holding high cost loans.
2) Transferring of normal loans to the ICICI home loan.
3) Prepayment on the old loan and processing fee on new loan.

4) Free door to door service.

AXIS Bank

The recommendation for name change to Axis Bank has arisen from the existence of
several shareholder-unrelated entities using the UTI brand, and the consequent brand
confusion that this generates. The name UTI bank was changed to AXIS bank as UTI
gave a look of government sector bank. They had to change our name to have our own
brand and identity

• The name was taken into effect consequent to the approval of shareholders,
Reserve Bank of India and the central government (Registrar of Companies).
• The UTI brand is owned by UTI Asset Management Company
• The bank would change logo and colour of logo the bank is likely to spend around
Rs 50 crore in the re-branding exercise.
• The bank acquired the services of Ogilvy & Mather (O&M) to design and
implement the rebranding campaign

• The new name was chosen considering the bank’s pan-Indian as well as
international presence.

• The first time that a bank has dropped an established brand for an unknown name.

• The name Axis is chosen as it is simple and it conveys a sense of solidity and a
sense of maturity. It also has a universal appeal
KOTAK MAHINDRA BANK

Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance), unveiled its
new brand tagline – ‘Faidey Ka Insurance’. The new positioning statement conveys, ‘Life
Insurance with Investment Edge’ in a direct and concrete manner. The new tagline is
supplemented by a novel advertising campaign, which conveys this shift in an innovative
and refreshing manner.
Today consumers seek beyond protection and endowment from their insurance plans. In
this context, leveraging Kotak’s core strength of investment expertise seemed a natural
extension for the brand. Hence the brand idea became ‘Life Insurance with Investment
Edge’, expressed as ‘Faidey ka Insurance’. The new positioning is a reflection of Kotak
Group’s extensive strength in the area of research and capital markets.

ADVERTISEMENT ANALYSIS

STATE BANK OF INDIA

Surprisingly SBI

SBI has been on an overdrive in the advertising world with a series of campaigns
following the much acclaimed " Surprisingly SBI" campaign. The entire world was
surprised because of the aggression of India's largest bank. The bank was successful in
changing the perception of many new generation customers about the key advantages of
SBI like " largest number of ATMs", branch connectivity etc.

Then came the second series of campaign " Every Indian's Banker".The ad was a big fall
from the quality hype created by " Surprisingly SBI" campaign. The second series
campaign was aimed at projecting the bank as a common man's bank which served no
strategic purpose as such. Every one knew that SBI used to serve all class of Indians. The
second series of ads served no business or brand purpose. Neither the ad gave any new
information to the consumers nor it invoked any brand equity for SBI.

Then came the third series of the campaign. The series is currently running across media.
The ad shows India's eminent personalities like Tagore, Bose to Tata with the caption -
The Banker to this Indian. The brand is trying to show off that it was the banker to the
most eminent sons of the soil.
Bank Of Baroda

Rahul Dravid

Bank of Baroda had spend about Rs 80 crore (Rs 800 million) on a high-profile
rebranding campaign, including Rs 5 crore (Rs 50 million) on the brand ambassador,
Indian cricket team's captain, Rahul Dravid. The roping in of Rahul Dravid as the brand
ambassador was an offshoot of the urge to present the bank as a charismatic frontrunning
financial entity. The earlier BoB brand had no recall value. People had a very cluttered
image of the bank. Now that's a thing of the past. The BoB brand now generates a very
bright image and it now is highly recallable.

In the first 45 days of the Rahul Dravid campaign, marketing staff enrolled 12.6 lakh
(1.26 million) more customers and mobilised Rs 650 crore (Rs 6.5 billion) of savings
account deposits. This was the result of BoB executives stepping out of their offices for
business. Dravid was not just a mascot or a cosmetic creation for the bank. There was
tremendous pressure on them for speedy changes. Students and professionals would not
look at BoB earlier. Now, they were getting attracted.

ICICI Bank

Jeete Raho

Jeete Raho! That says stay alive for ever is a custom here in India so elders bless there
loved once by blessing – “Jeete Raho!” . The company has been successful in
communication this punchline and tinkling the sight emotional cord.

The formation of a punchline is a strategic decision that brands arrive at after a detailed
analysis of there competitors there brands value there brands perception and many other
factors.

ICICI Prudential Life Insurance had launched its new promotional campaign ‘Jeete Raho’
through the movie.

Recent campaigns of ‘jeetay raho’ they became more rational rather than emotive
because other category is no longer new .
Their target customers were in the age group of 30-40 years.
Channels they were focusing were star, zee and Sony tv.
ICICI PRUDENTIAL was run on tv. With emotional type of films strike chord with
audience.
They were also providing product information through print and
outdoor channels.
Through their advertisement strategies they established themselves as market leader in
private players and now as they are in
expansion mode their ad is more focusing on features of product and benefits to
customers because other category is no longer new

AXIS BANK

The Bet at Nathu La!

The advertisement starts with two army personnel sitting somewhere in Nathula Pass.
Now, Nathula Pass is of historical importance as it was sealed in 1962 following the
Sino-Indian war. Having reopened after many bilateral and trade treaties were signed,
Nathula is one of the three border trading posts between China and India.
The plot of the story essentially stars a Yak – a long-haired bovine that’s found in
Himalayan regions – as the centre piece of the bet between two army men. The bet is
simple, yet stupidly funny. If the Yak turns its head back, one wins, while the other loses.
The stakes are unimaginably high at a hundred rupees!

As the two army men shake on it and the bet is a go, the eagerness is mounting up, so is
the anxiety. What will the Yak do? Will it turn its head back or not? The answer is
revealed shortly. The Yak turns its head back and one of them loses the bet. Upon being
asked to shell out a hundred, he checks his wallet and discovers that he does not have
hundred rupee notes at all. On hearing this, the winning Army man holds the other guy’s
hand and makes him walk to Axis Bank’s ATM.

Now, this is where the advertisement really shines – the moment the loser of the bet says
that he does not have hundred rupee notes, the winner holds his hand and makes him get
up to walk to the ATM. As he holds the hand, the entire act makes for the shape of Axis
Bank’s logo. The second USP is the promotion of the fact that Axis Bank operates ATMs
in as remote a place as Nathula Pass.

Additionally, consumers’ perception of banks on the whole has also undergone great
change from consumers thinking of banks as being unprofessional, slow, cumbersome
and inefficient to now being seen as easy to access, quick and efficient. Competition in
the category has clearly changed the category norms.

Axis Bank’s ‘There’s always a solution’ tagline will go onto become the philosophy that
Axis Bank will embrace; in word and essence. The communication campaign that will be
seen on television, outdoor and through branch / bank owned media will highlight the
delivery of the brand promise through a wide product range.

Using this approach, the bank makes a couple of statements; one about the depth of
products that will help solve problems and thus help people lead a more fulfilling life and
the second one about the fact that the bank has decided to take a leap from being a mere
product to a solution provider.
KOTAK MAHINDRA BANK

Faidey Ka Insurance

Kotak Mahindra Old Mutual Life Insurance Limited (Kotak Life Insurance), unveiled its
new brand tagline – ‘Faidey Ka Insurance’. The new positioning statement conveys, ‘Life
Insurance with Investment Edge’ in a direct and concrete manner. The new tagline is
supplemented by a novel advertising campaign, which conveys this shift in an innovative
and refreshing manner.

Today consumers seek beyond protection and endowment from their insurance plans. In
this context, leveraging Kotak’s core strength of investment expertise seemed a natural
extension for the brand. Hence the brand idea became ‘Life Insurance with Investment
Edge’, expressed as ‘Faidey ka Insurance’. The new positioning is a reflection of Kotak
Group’s extensive strength in the area of research and capital markets.

In today’s insurance parlance, a child plan is synonymous with the parent’s expectations
from their child. Kotak Life Insurance through its television campaign designed by JWT
and executed by SODA Films, attempts to break this mould. It gently suggests to parents
to refrain from forcing their expectations on their child but allow and enable the
children to exercise their choices and do what they like to do. It also reminds the parents
that, they should invest and plan so that they can provide maximum resources when the
need arises.

The campaign tries to reach out to its target audience through multiple mediums, such as
Television, Out of Home Advertising, Radio and Internet. The television campaign kick-
starts from 3rd December, while the Outdoor, Radio and Internet mediums will follow.
The Outdoor campaign will be pan-India reaching out to consumers in the Top 8 metros
and other focus markets of Kotak Life Insurance in Gujarat, Punjab and the Southern
Region.

References:-

Wikipedia www.statebankofindia.com

www.cygnusindia.com www.axisbank.com

www.wikinvest.com

in.reuters.com/finance
www.icicibank.com

www.kotak.com

www.bankofbaroda.com