A Presentation on

MARKETING OF SME PRODUCTS

IN
CANARA BANK

By:
Ramesh
Flow of presentation:

 Company Profile
 Products and services
 Introduction to SME
 Bank’s SME products
 Survey
 Suggestions

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Birth of Canara Bank

SRI AMMEMBAL SUBBARAO PAI

BORN ON 19-11-1852

FOUNDED THE
CANARA HINDU PERMANENT FUND
ON 01-07-1906

LATER RECHRISTENED AS
CANARA BANK LIMITED IN 1910

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Corporate Vision

TO EMERGE AS A WORLD CLASS BANK WITH

BEST PRACTICES IN THE REALMS OF
ASSET PORTFOLIO,
CUSTOMER ORIENTATION,
PRODUCT INNOVATION, PROFITABILITY
AND
ENHANCED VALUE FOR STAKE HOLDERS

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Corporate Mission
 AUGMENTING LOW COST DEPOSITS
 THRUST ON RETAIL LENDING
 TONING UP ASSET QUALITY
 ACCENT ON COST CONTROL
 PRODUCT INNOVATION AND MARKETING
 CUSTOMER CENTRIC FOCUS
 LEVERAGING IT FOR COMPREHENSIVE MIS
 MAXIMISING STAKE HOLDERS’ VALUE

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Growth of Canara Bank
 The First Balance Sheet:

CAPITAL - Rs.50,000

DEPOSITS - Rs.42,000

ADVANCES - Rs.84,000

VOLUME - Rs.1,28,000

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 Volume of Business for the year
2005-2006
Rank Bank Volume
1Canara Bank 1,96,000cr
2Punjab National Bank 1,94,000cr
3Bank of India 1,59,000cr
4Bank of Baroda 1,53,000cr
5Union Bank of India 1,27,000cr
6Central Bank of India 1,03,000cr

[Source: www.rbi.org.in] 7
Products and Services

 Personal banking
 Commercial Banking
 NRI
 Priority Sector
 Loans to SME
 International Services

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 Introduction to SME
(SME-Small and Medium Enterprise)

Definition:

 Global perspective:

1to49 Employees – Small Enterprise

50 to 250 Employees- Medium

Enterprise
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Definition …
Indian perspective
Manufacturing Sector Service Sector
(Original Inv in Plant & (original Cost of equ
Mach.) used for service)
Micro Up to Rs.25 lk Up to Rs.10 lk
Enterprise

Small Rs.25lk to Rs.5cr Rs.10lk to Rs.2cr

Enterprise

Medium Rs.5cr to 10cr Rs.2cr to Rs.5cr

Enterprise

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Why SME financing….???
 SSI financing is a constituent of
priority sector credit.

 More profitable

 Less concentration of risk

 Provides more job opportunities

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Canara Bank’s SME products:

 Products catering to Term Loan

requirements

 Products catering to Working Capital

requirements

 Non-fund based services

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Bank’s Initiatives to promote SME
products….

 Exclusive Marketing set-up for SME

 Emphasis on new accounts
 SMS campaign
 Ads on Rediff and Money Control
 Seminars, workshops
 Gold card

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Survey:
 3 Specialized SME branches
 Feedback on the following parameters
Customers: Adequate Finance
Speed
Service
Product
Awareness
Branch Managers: Constraints and
Approach towards lending.

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Survey findings
Adequate Finance
 76% - Bank finance adequate

 New customers face difficulty

- Lack of understanding of business
environment by managers
- Not keen to finance new ventures
- Lack of powers at branch level

 95% - Helped in expansion

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Survey findings
Speed & Service

 75% - Reasonably happy with Day-to-day

transactions

 90% - Not satisfied with the

processing speed

 Good service at specialized branches except

BSB

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Survey findings
Product & Awareness:

 Rate of Interest – competitive

 Priority – Timely credit &
Better Service
 Ready to pay upto 1% extra ROI
 Awareness mainly through Branch
officials (87%)

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Survey findings
Branch Manager’s views:

 Constraints for better service:

-Lack of powers
-Lack of initiatives by employees
-Technology
-Formalities
-High expectations

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Suggestions:

 Special training modules for managers on current

Economic scenario

 Extend Internet Banking to more branches and

enable more transactions at ATMs

 Increase Manpower (skilled)

 Implement single window transaction

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Suggestions contd…

 youngsters at counters

 Recruit more Marketing Managers

 Lend adequate support to Marketing

Managers

 Information from new customers

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THANK YOU
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