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A REPORT
ON
A comparative study of customer advisory on
investment done by Private and Public Bank.
The report is submitted as partial fulfillment of the
requirement of PGDM program of ITM Businessschool, Siruseri Chennai
By
ROHIT JAIN
CH2009PGDM15F22
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INSTITUTE FOR TECHNOLOGY AND MANAGEMENT
BUSINESS SCHOOL
SIRUSERI,CHENNAI
Sip letter from organization
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Table and contents
Serial No. Topic Page no.
Cover and title page 1
Certification 2
Acknowledgement 3
Table of content 4
Abstract 5
Introduction 6
1.1 Overview of the project 8
1.2 Purpose 8
1.3 Scope of the Project 8
1.4 Limitations 9
2 Research methodology 9
2.1 Research design 9
2.2 Selection of sample 9
2.3 Sample size 9
2.4 Hypothesis testing 10
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2.5 Methods of data collection 10
2.6 Customer advisory 10
2.7 Effectiveness of customer advisory 11
2.8 Who do work for customer advisory ? 11
2.9 Pitching of products 13
3 Main text 15
3.1 HDFC Organization profile 15
3.2 Preferred banking 15
3.3 Comprehensive wealth management 16
3.4 Privileges 17
3.5 Eligibility criteria 19
3.6 Classic customers 20
3.7 Benefits 21
3.8 Eligibility 21
3.9 Imperial customers
4 SBI Bank overview 22
4.1 Factors influence customer most 22
4.2 Personal banking 22
4.3 Term deposit 23
4.4 Sbi home loans 25
4.5 Education loan 27
4.6 Sbi saral personal loan 29
4.7 Yatra foreign travel car 31
4.8 Advisory in bank
Types of customers
33
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5 Overview axis bank 35
5.1 Customer advisory 35
5.2 Types of customers 37
5.3 Flow of advices in axis bank 39
Analysis/Findings 41/42
Conclusion 43
Suggestion 44
Annexure 45
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ABSTARCT
Every Customer Matters seems to be catch ward for
Modern Banking system. Customer advisory is based on
simple premise, as bank develops stronger relationship
with best customers; they stay with bank and become
more profitable. Knowing value of each customer andmaking them more loyal is evolving logic of advisory
services and effectiveness of keep on implementing the
same and helping the customer into their investment.
Public sector banks have some advantages such as low
interest rate which is their main tool to get more
customers without much of hard work but Banks in
Private sector are more aggressive in terms of services &
facilities offered to the customers. Customer targeting &advisory services have revolutionized industry and
gradually public sector banks have started implementing
these strategic approaches over the customers.
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Introduction
1.1 Overview of the project
Customer advisory is the modern way of Banking in India. It is
giving new definition to the banking industry, now days banking
has turned in to the very competitive industry which is evolving
gradually. Customer advisory is a very effective tool in terms of
revenue generation and customer retention. Every customer
wants be treated very well and hope to get profit out of
investment which has been done or will be there in the future,here customer advisory comes in picture to give support in
customers investment and making customer more loyal over the
bank.
1.2 Purpose of Customer advisory services
Generally when person thinks about investing money then few things always come in mind ofthe customers such as
Rate of return-
It depends up on the need of money in future, some time customers are not sure how they aregoing to use that amount in the future. Customer always can not arrive at the rate of return formhis investment here at this point of time customer advisory helps customer for their investments.
Market environment-
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Customers doesnt get enough time from his daily life to take initiative for learning the marketenvironment and without considering market condition it is very risky to invest his moneyblindly. Customer receives correct suggestion from the advisers regarding their investments.
1.3 Scope of project
Customer retention
Generally this is the implementation ofstrategic approach to increase the number ofcustomers who can keep high amount in the bank and keep giving good business toorganization.
Revenue generation-
This is the effective tool to increase revenue by using some
selected employee; contribution in revenue generation is very
significant.
1.4 Limitation
Time constraints only 45 days.
Resources constraints.
It may be biased in nature.
Rules in the different organization.
Research Methodology
2.1 Research design
This is a Qualitative study, which is concerned with describing the qualitative phenomena
particular group, my study of customer advisory is based on understanding the characteristics of
customer advisory in real banking environment which is appropriate for this.
2.2 Selection of the samples-
Non probability sampling technique has used in this subject to find out the strategic approach of
bank over advising the customers. Samples have collected from Relationship Managers and
Personal Bankers who advices to the customers.
2.3 Sample size
Sample size is 30.
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2.4 Hypothesis testing
In this study first step in testing the statement is Null Hypothesis. Null hypothesis is very
important to know the gravity of the topic selected.
Customer advisory is not important in Indian banking environment.
Reasons
Indian financial market is still growing and customer needs support in their investments.
Customer education is very important and customer advisory services do it perfectly.
Efficiency is very high as compare to traditional banking system.
Most helpful in customer retention.
Services offered by the banks are attractive for new customers, which attracts new
customers.
Customer becomes carefree regarding his investments.
Best tool for brand building by using word of mouth only. Hospitality for Customers .customers are treated according to their wish of being treated
by bank.
2.5 Methods of data collections
Questionnaire
I drafted questions to understand the concept of customer advisory. All the questions are
open-ended and very easy for the understanding of employee of Banks.
I had to collect data from the Data from the bank employees, because advisory services
are being provided to the customers by these persons only.
Observation
According to the need of mine study topic, observation is the effective and easy way to
gather more information in order to bring out some important and useful information for
the organization.
2.6 C ustomer advisory
A customer advisory service increase reliability of customers in Bank and provides aclear view of who to increasing revenues. Under this bank will have certain number of
customers who have very net worth and Relationship Managers provide advices to thecustomer. By doing this bank makes its customer very stable and not let them move tosome other banks, this gives freedom to both side, in bank's prospective it is theirsecured customers and for customers it stands as a very reliable and profit makingassistance. Despite of being very expensive banks are implementing this as their main
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toll of profitability because with these small number of customers produce high ratio inthe profit earned by the bank.
2.7 Effectiveness of customer advisory.
Effectiveness can be measured by the contribution being done by this strategy, it plays
significant role in revenue generation. Concept is very simple and effective, everycustomer wants to be treated very nicely for this he should have good investments withbanks. This is very simple give and take policy. In this both customer and bank getsprofits out of this.
2.8 Who do work as customer advisory?
Relationship managers
Personal Bankers
Role of Relationship Managers
R.M. is person with MBA degree from good collages and capable of dealing in financingwork on behalf of customers. Relationship managers look after only certain number ofcustomers, who can keep certain amount in their account. After allocating customer to therespective Relationship managers, It is deemed responsibility of R.M to not only serve hiscustomers but also to retain them in and bring business form customers.
Every Relationship manager is being upgraded by specific monthly reportscirculated by head office, which contains list of well performing products and suggestions forfuture investments to customer. List is consists of guide lines for investments according to thecurrent market environments.
There can be many R.M. in bank based on the services demanded by thecustomers, it also depends upon the geography of the area.
For example- Any branch which is at near to the I.T. industry, would require more need of R.M.who can handle high salary and suggest them for their investments of the IT industry people.
Flow of advices
It is a top down approach, starts from research and development department towardscustomers. They keep track on the customers record and investment has been done bycustomer. For this purpose they use management information systems , which helpsadvisors to select customers and approach customers to
If relationship managers wants to specific information then he can send request forspecific information.
Type of customer group
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For banks there can be two type of customers , who becomes the customers of respectivebank. Reason behind this is significant and very productive for banks in terms of revenuegeneration because banking industry depends up the ability to generate revenue. If lessnumber of customers can provide more profit as compare to large number of customersmore focus should be given.
Managed customers :This is a group of customers who receive special care form bank employees.
Bank provides them guideline on their investments and give them additional facilitieswhich are designed for them only. By being a managed customer one can enjoy theBanking.
Non managed customers
This is group of customers who are not receiving any special services onlyroutine banking services is offered to them.
2.9 Pitching of product3 Steps (circular diagram)
Before pitching product to the customers these 3 pointsshould be considered, As individual it has nosignificance but it works only when all three pointsare considered together. Each point has its ownimportance in its place.
Age of the customer :Age of customer needs to be considered first. Itreflects what are the plans customer may have for hisfuture.
For example if customer is young , he should be advisedfor more risky products for his investments such asMutual fund which has higher proportion of equity andless proportion of debt and government securities.
It depends up on the other two points as well, it
should be used all together while dealing withcustomer.
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Risk appetite of customer :This is random in nature of customer, customer mighthave some other plan for investment regardless of hisage and advices given by the Bank employee.
For example- Young customer can also ask for very safeand long term investments and senior citizen can alsoask for very risky products which would consists ofmore portion of equity and very less portion of debtand other government securities.AdvisoryRelationship managers should suggest appropriateproduct to customer which should be fulfilling therequirements and the future expectation form theperformance of product whether it would be for longterm investment or short term investments. This is notonly good for the investment of customer but also earnsgood for the name for the bank. In banking industryword of mouth plays quite significant part in add morecustomer in the Bank.
For example-Generally for the senior citizens lessrisky and monthly returns schema is advised becausethey dont have any source of income apart from theirsavings.
These three are interrelated with each others and always work together. As beingan individual identity does not have any significance in them.
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HDFC BANK
3.1 Organization profile
HDFC, India's premier private housing company enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
private banking services. HDFC updates itself consistently to meet its ever elevating
requirements of its valuable customers. There are various products offered by HDFC to meet
the requirements of the current E-Age trend which ease the banking process to its customers.
Wealth Advisory Service (WAS) is an additional add-on product offered free of cost with
ISA which provides unmatched exclusive service for Mutual Fund investments. HDFC Banks
in-house research team will provides frequent structured advisories based on customers risk
profile, investment objectives and financial goals. Regular update on market movements, new
fund offerings, recommended funds' performance, fund managers' views and Informative
articles on various investment products will be made so that Investments could be made with
more certainty.
With the provided database of HDFC managed portfolio customers, task of pitching and
creating awareness of products ISA and WAS to a selected band of customers has to be
accomplished. Primary objective is to have a complete study on ISA & WAS and market the
product efficiently to the target customers via mediums like phone, in-person and e-mailers.
The task has to carry with a constraint that, main business of the bank should not be tangled
due to the marketing process of cross product, so at most care has to be taken to save the
interest of the valuable customers. In addition to that the task of pitching the additional
appropriate cross products like Demat, HSL and GDC are on list based on customers interest.
3. 2 Preferred customers
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As the preferred customers, customer needs extra special attention, and
Bank assigns customer his very own Relationship manager, always on call.
Relationship Manager is an experienced and professionally trained
individual, whose primary concern is to that all your banking and financial
requirements are taken care of smoothly. So whether it is expert advice on
mutual fund investments or a demand draft that needs to be delivered at
your doorstep, trust your relationship manager to get the job done.
3.3 Comprehensive Wealth Management
To this end bank has designed convenient wealth management
solutions that range from tax saving investment avenues, buying and
selling shares to convenient tax payment options, all one roof.
Multiple investment option
Making appropriate decision on where to invest and when to invest requires
you to have an immense amount of research available at your finger prints.
What at HDFC Bank make it easier for you by offering you information and
advice on the widest range of investment options to suit your individual
needs. So you can make fully informed choices, and achieve returns, safety
and liquidity In line with customers expectations.
AMPHI certified relationship manager will make available
several investment products such as Mutual funds, insurance, RBI relief
Bonds, and other tax effective instruments avenues and help customerchoose between them, so your investment objective and earn optimal
returns in line with your risk profile.
Comprehensive Health management Program
IF customers are looking for end to end solutions for wealth
management, then look no further. R.M. will also introduce customer
to several options under our comprehensive Wealth management
Programs. Whether customers are looking at revamping a portfolio
that is performing less than optimally, or customers have fresh
invisible surplus funds to put away, you will find a solution to all yourneeds.
Seamless trading
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If customer trade in equities, customers can now opt for E-broking
through the HDFC Securities Trading accounts for easy settlement for
trading in the T+2 environments. R.M. will open a securities trading
account and link customer Demat account and saving account so
customer can enjoy a seamless flow of funds and shares between
accounts. Customers can buy or sell shares from anywhere, over
phone or over the internet.
Convenient tax payment option-
Paying customers taxes has never been simpler ! Hdfc bank is the
first private bank approved by RBI and the central board of direct
taxes to accept income tax, corporation tax, interest tax, wealth tax,
Expenditure tax through tax through cash or cheque, or contact your
R.M. who will assist customer with the process. You even save time if
you pay your tax through cash or HDFC Bank cheque, as the Challan
receipt will be returned to customeracross the counter.
Relationship Pricing :
Customer will have more preferential pricing, offered exclusive to
customers.
HDFC Securities trading Account
Account to convenience of E-Broking through Hdfc securities Trading
account. Customer can ask to R.M. for details on special pricing,
offered exclusively to Customer.
Credit Cards:
To this end bank provides TITENIUM CARD to our customers. This is
the one more way in which we thank to our customers Or customer
can avail of a free HDFC Bank International Gold Credit Card, along
with this customers are also entitled to the value added My City
Benefit Card that comes absolutely free.
Loan at preferential rates:
They can get the loans at very reduced pricing on selected loan
products.
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3.4 Exclusive privileges
Zero balance accounts:
In this customer need not to maintain average quarterly balance
applied on our savings and current accounts.
Combined monthly statement-:
Customer will receive consolidated monthly statements detailing all
transaction made on customers savings, current and fixed deposit
accounts where particular customer is the first holder.
Free Payable at Par cheque Book
Customer can have Payable at par cheque Books on their savings or
current account, which can be honored at any HDFC Bank Branchesacross the country.
50% discount on locker charges
Preferential Forex Rates
On every currency conversion (forex) transaction customer can have
benefit of an improvement of 8 paisa over the days credit rate.
Free standing Instruction
Customer can set up a convenient standing instruction on your
accounts for free and the payments will be triggered automatically.
Cheque pick up facility
Bank arranges to pickup cheques and other instruction, excluding cash
, from customers house.
Free transaction on Non HDFC ATMs
NO charges will be levied for balance enquiry and withdrawal
transaction if customer transact on non-HDFC Bank ATMs across India.
Business solutions
We also provide help for your business needs.
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Annual service charges waiver
A preferred customer deserves special services a waiver of up to Rs-
2000 per annum , on a host of service charges. The charges that are
included in this waiver are :
Demand draft/Managers cheque charges Inter branch fund transfer charges
Stop payment charges
Cheque return/collection charges
DD cancelation charges
Hold mail charges
Duplicate statement charges
Certificate of balance charges
FIRC charges
Recovery of old records charges
Free e-Age Banking
Free mobile banking
Free Net banking
Free 24-hour phone banking
ATMs
Bill Pay
Alert
3.5 Eligibility criteria
The terms and requirements for being eligible for the HDFC Bank preferred
Program, change on the basic of your geographical location.
Hold at least one Saving or current account sole or joint account, with
HDFC Bank.
Maintain a minimum Average Monthly Balance of Rs. 15 lakh across all
over the accounts (saving current and fixed deposits)
Or maintain average Quarterly balance of Rs. 2 lakh in savings
account.Or maintain an average Quarterly balance of Rs. 5 lakh in current
account.
The requisite balance can be maintained over your accounts and over
those of your immediate family members.
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3.6 Classic customers
As an HDFC Bank Classic customer, Customer and his family are now
entitled to a host of benefits, including preferentially priced products
and specified investments solutions.
4.1 Benefits
Debit cardsAs a classic customer one can avail of the gold easy shop debit card
absolutely free for life with an enhanced limit of Rs. 50,000 at
merchant establishment and ATMs.
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Alternatively customer can avail of free easy shop debit card where
annual fee of RS. 100 is waived for life.
Credit cards
As a classic customer , you will have a life time free HDFC Bank credit
cards with some exclusive offers.
Locker facility
Customer can avail of locker at any branch in the country at a 50%
waiver on annual locker rates.
HDFC Securities e-Broking Account
Customer will have convenience of e-broking through the HDFC
Securities trading account, specially priced for customer.
Monthly statement
Customer can track his money with bank, customer will receive a
statement every month. Customers Monthly statement will be
provided with details of all case and fd accounts, where customer isprinciple account holder.
Gold Bar
Customer can enjoy the best buy on Gold Bars.
Loans at special rates
Customer can take loan at preferential pricing on select loan products.
Bill payment
HDFC Bank takes the responsibility out of utility bill payments.
Customers are entitled to a waiver on annual Bill pay charges of RS.25
as long as you remain an HDFC bank classic customer.
Inasta alert
Customer can opt to be kept informed of select debit and credit
transaction on your account by registering for our insta alert facility.
You can get these alert through an SMS sent to your mobile number or
through an email sent to your email id.
Free Transaction on Non-HDFC Bank ATMs
FOREX
Customer can earn the benefit of the improvement of 5 paisa over thedays card rate, helping customer to in saving money.
Cheque book
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Customer can enjoy the benefit of payable at par (PAP) cheque book
absolutely free with no usage charge up to 1 lac.
Demand draft
Now customer can enjoy the benefit of issuing free DD/MC up to 50000
per day only in HDFC Bank locations.
Self/third party cash deposit at non home branches
This facility is available for up to Rs 1 lakh.
Demat
All classic customer can open demat accounts with 1st year annual
folio maintenance charges waived off, provided the shares are
transferred in the 1st year.
Also FMC charges from the 2nd year onwards will be reduced to Rs 250
provided the customer transfers the shares into the account within the
1st year.
Service chargesCustomer will not be charged any service charges for not meeting the
minimum Average quarterly balance requirement in your accounts, or
those of family .
Free e-age banking
Mobile banking, phone banking and wide network of ATM absolutely
free.
3.8 Eligibility
A minimum average quarterly balance of just 5 lakh insaving account(this can
Maintained across accounts of you or your immediate
family.
Or
A minimum Average monthly Balance of just 5 lakh in
acombiantion of saving accounts
And term deposit .
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Interest to be charged on premature withdrawal of term deposits at 1.00% below the rateapplicable for the period deposit has remained with the Bank.
Transferability-
Transfer of Term Deposits between our wide network of branches without any charge.
Compounding / Flexible / Timely Payment of Interest
Under our Special Term Deposit Scheme, interest accrues in your account and getscompounded quarterly. Besides, we assure timely delivery of the proceeds of your deposit withinterest, on maturity. Flexibility of payment on maturity through Cash (subject to prevalentIncome Tax Act), Banker's Cheque, Credit in Savings Bank/Current account.
Term Deposits are available at all SBI Branches
Easy and convenient access of 24X7 information at SBI Internet Banking.
Nomination Facility - Available.
Tax Implications.
Tax Deductible at Source, as per Income Tax Act.
Automatic RenewalsThere is no need for you to keep track of the maturity of your deposits. Your deposits with uswill be renewed automatically, post maturity and you continue to earn interest for same periodas that of your matured deposit, at the interest rate prevailing at the time of maturity. Automaticrenewals take place where there are no standing instructions for renewal.
Flexibility to cover your Special Term Deposit to Term Deposit and vice versa
You can convert your special Term Deposit to a Term Deposit to receivemonthly/quarterly interest payments to match your financial requirements. Quarterlyinterest at calendar quarter is also available.
You can also convert your Term Deposit to a Special Term Deposit, which providescompounded rate of interest to multiply your money faster.
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4.3 SBI Home Loans
"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ ConsumerAwards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV18 in association with AC Nielsen-ORG Marg in 21 cities across .
SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES inaccordance with SBI's commitment to Environment protection.SBI Home Loans come to you onthe solid foundation of trust and transparency built in the tradition of State Bank of .BestPractices followed in SBI mentioned below will tell you why it makes sense to do business with
State Bank of .
SBI Home Loans Unique Advantage
Package of exclusive benefits Lowest interest rates. Further, we charge interest on a daily reducing balance! Low processing charges No hidden costs or administrative charges No prepayment penalties. Reduce your interest burden and optimally utilize your
surplus funds by prepaying the loan. Over 12000 branches nationwide, you can get your Home Loan account parked at a
branch nearest to your present or proposed residence.
Interest rates
SBI EASY HOME LOAN (JULY 2010)(Base Rate =7.50% p.a.)
Interest rate for proposals sanctioned between 1stJuly
2010 and 30th September 2010.
Loan amount Maximum Rs.50 Lacs
Facility Type OD (MaxGain) or TL
Interest during first year 8% p.a.(Fixed)
2nd & 3rd year 9% p.a.(Fixed)
Floating interest rate after 3rd 1.75% above Base Rate, Currently effective
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year rate being 9.25% p.a.
Fixed interest rate after 3rd year 3.50% above the Base Rate prevailing at the time of
reset,with a reset frequency of 5 years.
SBI ADVANTAGE HOME LOAN (JULY 2010)
Interest rate for proposals sanctioned between
1st July
2010 and 30th September 2010.
Loan amount Above Rs.50 Lacs
Facility Type TL
Interest during first year 8% p.a.(Fixed)
2nd & 3rd year 9% p.a.(Fixed)
Floating interest rate after 3rdyear
2.25% above the Base Rate, Currentlyeffective rate being 9.75% p.a.
Fixed interest rate after 3rd year 3.50% above the Base Rate prevailing at thetime of reset, with a reset frequency of 5 years.
REPAYMENT
Repayment period:
Maximum 25 years (or) Up to the age of 70 years (the age by which the loan should be
fully repaid) of the borrower, whichever is early.
Moratorium period (Repayment holiday):
The moratorium period is included within the maximum repayment period.
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4.4 EDUCATION LOANA term loan granted to Indian Nationals for pursuing higher education in India or abroad whereadmission has been secured.Eligible
All courses having employment prospects are eligible.
Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.
Expenses considered for loan
Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution
fees for the entire course) Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 50,000/-
Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan
For studies in , maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs
Interest Rates :
From 29.06.2009 (SBAR 11.75%)
SBI Student Loan Scheme
Loan Amount Rate of Interest
Loans upto Rs. 4.00 Lacs 0.50% below SBAR i.e. 11.25% p.a.
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Eligibility
Customers are eligible if you are a Salaried individual of good quality corporate, selfemployed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years
standing.
Salient Features
Loan Amount
Customers personal loan limit would be determined by your income and repaymentcapacity.
Minimum : Rs.24,000/- in metro and urban centersRs.10,000/- in rural/semi-urban centers
Maximum : 12 times Net Monthly Income for salaried individuals and pensioners subject
to a ceiling of Rs.10 lakhs in all centers
Documents RequiredImportant documents to be furnished while opening a Personal Loan Account:
For existing bank customersPassport size photograph
From salaried individualsLatest salary slip and Form 16
MarginWe do not insist on any margin amount.
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,without attracting any prepayment penalty.
SecurityNIL
Processing Fee
Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in theindustry. Processing fees have to be paid up front. There are no hidden costs or other
administrative charges.
Interest rates
Base Rate 7.50 % w.e.f. 01.07.2010Other Loans
Type of Facility Rate of InterestClean Overdraft 8.25% above Base Rate, currently 15.75%
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p.a.Personal Loans Scheme (SBI Saral) 6.50% above Base Rate, currently 14.00%
p.a.SBI Loan to Pensioners 4.75% above Base Rate, currently 12.25%
p.a.Festival Loan Scheme 6.75% above Base Rate, currently 14.25%
p.a.Loan against Bank Time Deposits 1.00% over the rate paid on Relative timedeposit.
Xpress Credit
Type Facility Rate of InterestDemand Draft Check-off from Employer 5.00% above Base Rate Floating, currently
12.50% p.a.Overdraft Where salary A/c is with us 5.50% above Base Rate Floating, currently
13.00% p.a.
4.6 SBI VISHWA YATRA FOREIGN TRAVEL CARD
THE CARD:
Issued in association with VISA International.
Accepted at 1.40 Million VISA ATMs and at over 28 Million Merchant
Establishment(MEs) approximately, all over the world except in , and .
Available at all Branches authorized to sell Foreign currency / travelers
cheques
ELIGIBILITY
Any confide citizen of who plans to travel abroad except and .
Corporate for their employees whom they plan to send abroad for officialpurpose subject to completion of KYC norms.
Parents / sponsors of the students going abroad for higher studies, in thestudents name and can be subsequently reloaded up to the statutory ceiling
prescribed from time to time.
Foreign Nationals residing in subject to completion of KYC no.
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FEATURES:
Maximum amount of issue: US Dollars 10,000 or equivalent / or any higher
amount
as prescribed RBI/FEMA 1999 depending on the purpose of overseas visit
Competitive exchange rates. Reloadable any number of times from any branch authorized to issue FTC.
SMS message on your Mobile phone for each transaction
Opera table by 4 digit PIN at ATMs and by PIN/Signature at Merchant
Establishments. Free balance enquiry at SBI / VISA ATMs(at a charge)
Free balance enquiry and view / download details of transactions through
www.prepaidsbi.com Add-on cards not exceeding two in number to be used by the card holder in
case of loss/misplacement/defacement of the card
Balance information after each transaction through SMS
Free insurance cover up to Rs.2 lacs for 48-hour pre and post card lost liability
on non-PIN based transactions. (conditions apply)* A 24 x 7 call centre to provide information and hot-list (block) the card in case
of loss / misplacement.DOCUMENTS
Copies of Pass port
Form A2(if Foreign Currency to be bought is more than US$ 5000)
PAN or Form 60 in lieu thereof Proof of residence in case the address is different from that appearing on
passport
4.6 Customer advisory in SBI Bank
like other private banks SBI is also providing this services for their customers who ever ask foradvisory services. Since SBI has secured strong position in every segment of Indian territory,now they are planning to capture the High net worth customers.Keeping the increasing completion in view they are also coming in this field aggressively, andhave taken best steps to penetrate in the market.SBI Bank has been providing loans at lowerinterest rates then any other bank in India, and taking advantage of this services to increase thenumber of customers.SBI provides easy and effective NRI Services to regular visitors forcurrency conversion and money transfer to their required destination.
Since SBI Bank is a public sector bank and part of governing body they dont believe indiscriminating customers. Even though bank provides specific services to their high net worthindividual it considers normal walk-in customers equally important.
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In case of SBI Bank ,it has high number of customer from medium level families who are livingin limited income and do not think much about investing for their future needs but they havegood number of managed customers who come in the list of VISHESH customers.
Customer retention-
Scheme is to hold high net worth individual customers with the Bank , up gradation of
customers is being done from their existing position to the level of VISHESH customers.
These customers are called as High Net worth individuals. Initial requirements for becomingVishes customer is straight and clear, once customer has reached at this level then he can takeprivileges of advisory services available in the Bank, Relationship manager will help them inevery possible condition to advice them whether is NRI Services or any other services.
Generally this is the implementation ofstrategic approach to increase the number ofcustomers who can keep high amount with the customers and keep giving good business tocustomers.
4.8 Shareing of informaiton
Every time when SBI introduces new schemes in the market ,they inform about this to their
VISHESH customers and other customers as well. If customer is interested then he can take helpof relation ship managers in this matter. Information is send to customers by internet or they canuse physical medium like post and courier as well.
Circular and schemes are shared with every customer, this is very important to circulate suchinformation among the customers because they might have more then one bank account withother banks and other banks might be sending such circular among the customers. Such activityremind the customers about the schemes and services available in SBI Bank and prove as veryimportant tool for customer retention.
4.9 Types of customers in SBI Bank
1 Managed customers
2 None managed customers
Non-Managed Customers-
These are the customers who are having only normal accounts like walking customers, they arehigh in number as compare to Managed customers.
Managed customers-
Customers who are loyal to the bank and has been having good relationship with Bank areconsidered as managed customers, and called as VISHESH Customers.
Customers who have high net worth individually can become the managed customers; form thisthey need to follow the certain rules designed by SBI Bank. Entry level depends upon the
geographic area, this is very flexible in terms of Managed customers.For Example: If branch is near by any rich area then entry level for customers will be acc ording to the earning of population of the that area unlike other private sector banks where specificlimits need to crossed.
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If branch is at near to fisherman area(Semi urban/township area) then entry level for theVISHESH customers would be according to earning of fisherman.
This scheme encourages to every level of customer to keep high amount with the banks.
these are the customers who are taking advisory services of the Relationship Managers assignedto them.
They can visit to their assigned R.M. & he will get all things done for customer.
Vishesh customers are privileged customers, who have kept high amount with bank either interms of deposit or by any other specific services provided by bank.
For these customers bank makes every process veer easy and at comparative less charge.
AXIS BANK
5 Overview
Axis Bank was the first of the new private banks to have begun operations in 1994, after theGovernment of India allowed new private banks to be established. The Bank was promotedjointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), LifeInsurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) andother four PSU insurance companies, i.e. National Insurance Company Ltd., The New IndiaAssurance Company Ltd., The Oriental Insurance Company Ltd. and United India InsuranceCompany Ltd.
The Bank today is capitalized to the extent of Rs. 407.44 crores with the public holding (other
than promoters and GDRs) at 54.51%.The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. TheBank has a very wide network of more than 1042 branches (including 56 Service Branches/CPCsas on 30th June 2010). The Bank has a network of over 4474 ATMs (as on 30th June 2010)providing 24 hrs a day banking convenience to its customers. This is one of the largest ATMnetworks in the country.
The Bank has strengths in both retail and corporate banking and is committed to adopting thebest industry practices internationally in order to achieve excellence.
5.1 Customer advisory services:
In axis bank customer advisory services is accessible for customer only after
joining Axis bank priority Banking. This provides specific services to
customers and increases the loyalty of the customers. Customer becomes
privilege customer at this level.
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Banking Privilegesat priority banking.
Priority Banking Lounge:As a Priority banking customer you will have access to an exclusive 'Priority BankingLounge' at branches. This will allow you to conduct your financial transactions in utmostcomfort and confidentiality through an exclusive Relationship Manager.
Dedicated Relationship Manager:You will enjoy access to a dedicated Relationship Manager who will be your one pointcontact at branch for all your banking transactions thus ensuring that you would neitherhave to move from one counter to the other nor stand in queues to await your turn.
Home Banking:Experience the convenience of our home banking facilities. Avail of free cash andcheque pick-up and delivery at your office or residence.
Exclusive Priority Banking International Debit card:This card allows you free access to all VISA ATMs in India. The card also comes withhigher ATM withdrawal limits, higher POS transaction limits at merchant
establishments, enhanced insurance cover and a host of special discounts and offers. You also get Preferential Interest Rates and lowered Processing Fees on select Retail
Loans.
Other Banking Privileges:Enjoy a host of banking privileges like free at-par cheques, demand drafts and payorders, free passbook updates and monthly statements.
You would also be entitled to two free minor accounts, one free outward remittance perquarter and free Mobile banking.
Investment Privileges
Avail of assistance in financial planning. Investment advice, market information reports,
and invitations to investor meets are offered complimentary to you. Lifestyle Privileges
However, it's not all about just financial services. We aim to provide a different Lifestyleexperience through special offers on premium brands, movie privileges, special events and lotsmore - especially for our Priority Banking customers
Gold Credit Card
As an added privilege, Priority Banking customers may also apply for a Gold Standard CreditCard and Gold Standard Secured Credit Card without any additional fee, subject to theapplicable terms and conditions.
Priority Banking customers would also be eligible for a 50% reduction on the Issuance Fee ofGold Plus Credit Card and Gold Plus Secured Credit Card. Rs. 500 will be charged as the annualmaintenance charge for Priority Banking customers, subject to the applicable terms andconditions.
Eligibility Criteria
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You can sign up for Priority Banking service by agreeing to any one of the following criteria
Average quarterly balance (AQB) of Rs. 1 Lakh in your savings account ( thisrequirement is Rs. 75,000 if in case you have a salary account with Axis Bank)
Average quarterly balance of Rs. 5 lakhs in combination of your savings and termdeposits (Minimum AQB of Rs. 50,000 in the savings account)
Minimum Average Quarterly relationship (SB+TD) of Rs. 10 lakhs across members ofthe same family - Subject to a minimum average SB Balance of Rs. 80,000 beingmaintained in the SB accounts of the participating members and the remaining amount inTerm Deposits
Minimum average quarterly relationship of Rs. 5 Lakhs in Encash 24 (Flexi Deposits)account.
5.2 Types of customers
Managed Non managed customers
Non managed customers:These are the customer who have normal banking account with bank and do simple bankingtransaction with bank.
Managed customers:
These customer are called priority customers and they are privileged customers of the bank,customer will be served at first priority that is the use of making this program.
For managed customers, bank assigns one Dedicated relationship manager for mass and massaffluent customers. As the customer reaches at the higher level weld advisors will be assign tohim to look after all the banking work.
These are-
Mass Mass affluent Affluent
Facility and services provided by bank to these customers
They will get the loan at reduced interest rates from the prevalent market rates, interestrates will be reduced from .25 % to .50 %. This interest rates are providing an edge andcustomer is taking services from them.
Mass customer-
Minimum requirement to become mass customer is customer should maintain 1 lakh inhis any current, saving accounts.
Services for the mass customers
Priority banking international debit card Free usage at any visa ATM in India
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AMBIENCE
SERVICES
Findings
HDFC BANK
Bank has good name in the market and has become the reliable organization for
investments.
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HDFC BANK SBI BANK AXIS BANK
LOAN
SERVICES
GOOD BEST BETTER
HDFC BANK SBI BANK AXIS BANK
LOAN
SERVICES
GOOD AVERAGE BEST
HDFC BANK SBI BANK AXIS BANK
LOAN
SERVICES
GOOD AVERAGE BEST
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approach. Banking industry is very sensitive industry, where a
bank can easily lose its customer; This has become important tool
to increase the customer loyalty and customer retention.
Different banks are implementing these approach at their
required level. But condition changes as geography changes andone who can change itself according to the conditions becomes
leader in the market. HDFC Bank is one of the strong player in the
Private sector bank has been running its banking operations with
pride of serving its customers with best services available. HDFC
Bank has won the customer trust of being a reliable destination of
investment and banking operations. Bank is doing very well with
its retail customers and managed customers as well, it is offering
advisory services to managed customers by dividing them in tothree groups. Each group is handled by the team Relationship
managers.
State Bank of India is famous for and taking advantages in
Geography (semi urban and rural areas) bank is very strong at its
retail banking and loan services and gradually taking up this
concept as strategic approach to without any discrimination in
between customers.
Axis bank is a good name in banking industry , it is upgrading its
infrastructure and has been using customer advisory since long
time and has been providing services to the customers. It has
segmented its customers and running advisory services with the
name of Priority banking. It is divided in to three sub group of
high net worth customers and serves them with its best services
available. It is implementing combination of low interest rates,
good infrastructure and advisory services.
This strategy of providing advisory services to the
customers has proved its effectiveness in terms of profitability
and customer retention. Banks which are having this service has
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shown good sign of growth and opportunities of bringing in other
financial products in the bank premises.
SUGGESTIONS
For the long term good services alone are not sufficient tool we should over some unique
strategic approach to take leading position :
HDFC BANK should use its resources to increase number of customers in its territory,
because this is main source of revenue.
Bank employee should call back to every customers who has shown little interest in
investment with bank otherwise other customer can steal our customers.
Since private sector bank is very strong in term of providing loan services and using it as
main tool to increase the customers, we should convince customer to for loan services aswe are providing loan on homes and looking after all other procedure related with buying
home.
We should convince customer to open one saving account with us and make them
believe that this is just like saving & will be having better facilities than any other public
sector bank.( This is the perception of a common man who thinks this investment of
10000 Rs is going to stuck in the bank.)
Since selected private sector bank is focusing more on Current accounts then we should
take up this opportunity to get good grip over other accounts along with current accounts.
Bank employee should invest more time with customer to make them feel special and
gradually make him agree for investment in bank. Bank should persuade that customer who has kept big amount with us and not investing
by investing their money in good products bank can generate profit.
Bank should organize awareness campaign targeting to specific customers who canbecome potential customer. To make them aware about the benefits of investing theirmoney in good financial products.( to change their perception over the investments,Instead of keeping money with them customer should invest in financial products so thatcan beat the effect of inflation)
Bank should need to focus on customer targeting.
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Annexure
Questions
1. What are the offers you can give to your customers according to the level of
customer?
2. How do you use monthly reports to advices the investment wanted by the
customer?
3. How do you pith products to the customers?
4. How products/schemes in your Bank are different then other banks?
5. What do you suggest to add on the advisory report?
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