A

PROJECT REPORT ON

“A STUDY ON BANKING SERVICES IN BANK OF BARODA”

SUBMITTED BY
DIVYA NAIR
MMS - FINANCE
ROLL NO: 171116

IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF DEGREE OF
MASTERS IN MANAGEMNT STUDIES
OF UNIVERSITY OF MUMBAI
BATCH 2017-19

UNDER THE GUIDANCE OF

PROF. C.K.SREEDHARAN

PILLAI INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

NEW PANVEL, NAVI MUMBAI-410206
 COMPANY CERTIFICATE

CERTIFICATE

This is to certify that the summer internship project titled “A STUDY ON BANKING
SERVICES IN BANK OF BARODA” is successfully completed by Ms. DIVYA NAIR during
Semester III, in partial fulfillment of the Master’s Degree in Management Studies recognized by
the University of Mumbai for the academic year 2017-19 and represents the work done at BANK
OF BARODA, NERUL BRANCH.

This project work is original and has not been submitted earlier for the award of any degree /
diploma or associate ship of any other University / Institution.

Name: Prof. C.K.SREEDHARAN

Date: ______________

(Signature of Guide)
 DECLARATION

I hereby declare that the Summer Internship Project Report, prepared by me under the guidance
of Prof. C.K.SREEDHARAN is a bona fide work undertaken by me and it is not submitted to any
other University or Institution for the award of any degree / diploma / certificate or published any
time before. I also declare that the report is free of any plagiarism.

Name: Ms. DIVYA NAIR

Roll No.: 171116

Signature of the student

 ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep and sincere gratitude to “Bank of
Baroda Nerul Branch.” who gave me chance to show my capability and allowed me to carry
out a project guide under Branch Manager Mr.Khajan Singh.

I present my heartfelt gratitude towards Prof. C.K.SHREEDHARAN Sir for giving me this
opportunity to wide my horizons of undertaking by giving me the project on “A STUDY ON
BANKING SERVICES IN BANK OF BARODA (NERUL BRANCH).”

By working on this project, I got an opportunity to learn many aspect of banking sector. I would
like to thank all the people who have guided me throughout the project work. It has been great
time learning new things about Banking Services and acquiring professional attitude under the
expert guidance of Mr. D.H.Sangle (Chief Manager) without whose constant encouragement and
ever guiding spirit, this project would not have been completed. I also convey my special thanks
to Manjit Singh Manku (Asst.Manager) and Mr.Anwar.K.S and other staffs for helping me
throughout the project.

Lastly, I would like to thank all those who directly and indirectly helped me in completion of this
project.
 EXECUTIVE SUMMARY

This project report has been reared in partial fulfillment of the requirement for subject: The
Summer Internship Programme on the topic “A STUDY ON BANKING SERVICES IN
BANK OF BARODA (NERUL BRANCH).”

In the recent age of business when profit maximization is the main objective of every individual
rise competitiveness and service quality are the major thrust areas to conquer the market.
Initiative, foresight, talent and competence are the imperatives to manage the modern business.

The MMS course inculcates those skills in students which prepare them to face the challenges of
business world. In the midst of the course, summer internship in some business organization is
arranged for students that are very essential. Such training givers practical experiences and help
the students to view the real business world closely, which in turn widely influences their
conceptions and perception.
 TABLE OF CONTENTS

Sr.no. Topic Page no

Part A
1 Introduction 1
2 Brief company profile 11
2.1 Organization History in brief 12
2.2 Brief details of the Top Management 13
2.3 Size of the organization 14

2.4 Vision and Mission of the organization 16

3 Industry Analysis
3.1 PESTEL 17
3.2 Porter’s Five Forces Analysis 20
3.3 Porter’s Generic Strategies 22
4 Company analysis
4.1 SWOT 24
4.2 7S framework to analyse the different aspects of the organization 25
4.3 Value Chain Analysis. 27
4.4 BCG Matrix. 33
PART B (RESEARCH BASED PROJECT)
5 Introduction
5.1 Nature of the problem. 35
5.2 Objective of study. 35
5.3 Utility of the study. 35
5.4 Limitations 35
6 Methodology
6.1 Approach 36
6.2 Sources of data 36
6.3 Method of data collection 36
 6.4 Size of Sample 36
6.5 Method of data analysis 36
7 Context of Industry Problem 37
8 Presentation of data 38
9 Analysis of Discussion 49
10 Conclusion
10.1 Inferences 49
10.2 Managerial Implication 49
10.3 Recommendation of actions 49
Part C
11 Learning’s and takeaways 50

12. References 53
13. Annexure 54
 Part A
INTRODUCTION

OVERVIEW OF INDIAN ECONOMY

India has appeared as the fastest growing major economy in the world as per the Central
Statistics Organization (CSO) and International Monetary Fund (IMF) and is expecting to be one
of the top three economic powers of the world over the next 10-15 years, which is backed by its
strong democracy and partnerships. India’s GDP is estimated to have been increased by 6.6 per
cent in 2017-18 and is expecting to grow by 7.3 per cent in 2018-19.
India's Gross Domestic Product (GDP) at constant prices grew by 7.2 per cent in September-
December 2017 quarter as per the Central Statistics Organization (CSO). Corporate earnings in
India are expected to grow by 15-20 per cent in FY 2018-19 supported by recovery in capital
expenditure.
The tax collection figures between April 2017- February 2018 show an increase in net direct
taxes by 19.5 per cent year-on-year and an increase in net direct taxes by 22.2 per cent year-on-
year.
India has retained its position as the third largest startup base in the world with over 4,750
technology startups, with about 1,400 new startups being founded in 2016.
India's labour force is expected to touch 160-170 million by 2020, based on rate of population
growth, increased labour force participation, and higher education enrolment, among other
factors.

INDIAN BANKING SECTOR

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are
generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.

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The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS).

Market Size

The Indian banking system consists of 27 public sector banks, 26 private sectorbanks, 46 foreign
banks, 56 regional rural banks, 1,574 urban cooperative banks and 93,913 rural cooperative
banks, in addition to cooperative credit institutions. Public-sector banks control more than 70
percent of the banking system assets, thereby leaving a comparatively smaller share for its
private peers. Banks are also encouraging their customers to manage their finances using mobile
phones.

As the Reserve Bank of India (RBI) allows more features such as unlimited fund transfers
between wallets and bank accounts, mobile wallets are expected to become strong players in the
financial ecosystem.

The unorganized retail sector in India has huge untapped potential for adopting digital mode of
payments, as 63 per cent of the retailers are interested in using digital payments like mobile and
card payments, as per a report by Centre for Digital Financial Inclusion (CDFI).
ICRA (Industry Information and Credit Rating Agency) estimates that credit growth in India’s
banking sector are 7-8 percent in FY 2017-18.

Investments/developments
Key investments and developments in India’s banking industry include:

 The bank recapitalization plan by Government of India is expected to push credit growth
in the country to 15 percent and as a result help the GDP grow by 7 per cent in FY19.
 Public sector banks are lining up to raise funds via qualified institutional placements
(QIP), backed by better investor sentiment after the Government of India's bank
recapitalization plan and an upgrade in India's sovereign rating by Moody's Investor
Service.
 The RBI amends statutes thereby allowing lenders to invest in real estate investment
trusts (REITs) and infrastructure investment trusts (InvITs) not exceeding 10 percent of
the unit capital of such instruments.

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Government Initiatives

 The Government of India is planning to introduce a two percentage point discount in the
Goods and Services Tax (GST) on business-to-consumer (B2C) transactions made via
digital payments.
 A new portal named 'Udyami Mitra' has been launched by the Small Industries
Development Bank of India (SIDBI) with the aim of improving credit availability to
Micro, Small and Medium Enterprises' (MSMEs) in the country.
 Mr.Arun Jaitley, Minister of Finance, Government of India, introduced 'The Banking
Regulation (Amendment) Bill,2017', which will replace the Banking Regulation
(Amendment) Ordinance, 2017, to allow the Reserve Bank of India (RBI) to guide banks
for resolving the problems of stressed assets.
 Under the Union Budget 2018-19, the government has allocated Rs 3 trillion (US$ 46.34
billion) towards the Mudra Scheme and Rs. 3,794 crore (US$ 586.04 million) towards
credit support, capital and interest subsidy to MSMEs.

3
4
PUBLIC SECTOR BANKS IN INDIA

Nationalized banks in India

Banking System in India is dominated by nationalized banks. The nationalization of banks in
India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective
behind nationalization was to spread banking infrastructure in rural areas and make available
cheap finance to Indian farmers. Bank Nationalization Day came into existence ever since 14
banks were nationalized by the government on July 19, 1969. After India got independence, the
Government of India (GOI) planned on a systematic economic development of the country.

5
Commercial banks belonged to the private sector those times. Since these commercial banks
were run by business houses, they failed in helping the government in many ways. Hence, the
government decided to nationalize 14 major commercial banks.
A second wave of nationalization in banking came into effect in April 1980.
Currently there are following 21 nationalized banks in India as per the RBI website. They are-

1. Allahabad Bank.
2. Andhra Bank.
3. Bank of Baroda.
4. Bank of India.
5. Bank of Maharashtra.
6. Canara Bank.
7. Central Bank of India.
8. Corporation Bank.
9. Dena Bank
10. Indian bank
11. Indian Overseas Bank
12. IDBI Bank
13. Oriental Bank of Commerce
14. Punjab and Sind Bank
15. Punjab National Bank
16. Syndicate Bank
17. State Bank of India
18. UCO Bank
19. Union Bank of India
20. United Bank of India
21. Vijaya Bank.

6
FUNCTIONS OF BANK

A. Primary functions of Banks:

The primary functions of bank are also known as banking functions. They are the main functions
of bank.
These primary functions of bank are explained below-

 Accepting deposits-
The bank collect deposits from the public these deposits can be of different types such as :-
 Saving deposits- This type of deposits encourage saving habits amongst the public. The
rate of interest is low. Withdrawals of deposits are allowed subject to certain restriction.
This account is suitable to salary and wage earners. This account can be opened in single
name and joint name.
 Fixed deposits- Lumpsum amount is deposited at one time for a specific period. Higher
rate of interest is paid, which varies with the period of deposit. Withdrawal are not

7
 allowed before the expiry of the period. Those who have surplus funds go for fixed
deposits.
 Current deposits- This type of account is operated by businessmen. Withdrawal are
freely available. No interest is aid. In Fact, there are service charges. The account holders
can get overdraft facility.
 Recurring deposit- This type of account is operated by salaried persons and etty traders.
A certain sum of money is periodically deposited into bank. Withdrawals are permitted
only after the certain period. A higher rate of interest is paid.

 Granting of loans and advances

-The bank advances loans to the business community and other members of the public. The rates
charged is higher than what it pays on the deposits. The difference in the interest rate (lending
rates and the deposit rates) is its profit.
The type of bank loans and advances are:-
 Overdraft-This type of advances are given to current account holders. No separate
account is maintained. All entries are made in the current account. A certain amount is
sanctioned as overdraft which can be withdrawn within a certain period of time Interest is
charged on actual amount withdrawn. An overdraft facility is granted against a collateral
security. It is sanctioned to businessman and firms.
 Cash Credit- The client is allowed cash credit upto a specific limit fixed in advance. It
can be given to current account holders as well as to others who don't have an account
with bank. Separate cash credit account is maintained. Interest is charged on the amount
withdrawn in excess of limit. The cash credit is given against the security of tangible
assets. The advances is given to longer period and a larger amount of loan is sanctioned
than that of overdraft.
 Loans- It is normally for short term(period of 1 year) or medium term(period of 5 years).
Now a days banks do lent money for long term. Repayment of money can be in
installments spread over a period of time or in a lump sum amount. Interest i9s charged
on the actual amount sanctioned, whether withdrawn or not. The rate of interest may be
slightly lower than what is charged on overdraft and cash credit. Loans are normally
secured against tangible assets of the company.

8
  Discounting of Bills of exchange-The bank can advance money by discounting or by
purchasing bills of exchange both domestic or foreign bills. The bank pays the bill
amount to the drawer or the beneficiary of the bill by deducting usual discount charges.
On maturity the bill is presented to the drawee or acceptor of the bill and the amount is
collected.

B. Secondary functions of Bank:

The bank performs number of secondary functions, also called as non-banking functions.
These important secondary functions of banks are explained below-

 Agency functions- The bank act as a an agent of the customers. The bank
performs a number of agency function which includes:-
 Transfer of funds- The bank transfer funds from one branch to another or from one
place to another.
 Collection of Cheque- The bank collects the money by cheque through clearing section
of its customers. The bank also collect money of the bills of exchange.
 Periodic Payments- On standing instruction of the clients, the bank make periodic
ayments.in respect of electrical bills, rent, etc.
 Portfolio Management- The banks also undertake to purchase and sell the shares and
debenture on behalf of the clients and accordingly debit or credits the account. This
facility i9s called portfolio Management.
 Periodic Collections- The bank collects salary, pension, dividend and such other
periodic collections on behalf of the clients.
 Other Agency Functions- They act as trustee, executor, advisors and administrator on
behalf of its clients. They act as representative of clients to deal with other banks and
institutions.

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  General Utility Functions-
The bank also performs general utility functions, such as:-
 Issue of Drafts and Letter of Credits- Banks issue drafts for transferring money from
one place to another. It also issue Letter of Credit, especially in case of, import trade. It
also issues travellers cheques.
 Locker Facility- The bank provides a locker facility for the safe custody of value
documents, gold ornaments and other valuables.
 Underwriting of Shares.-The bank underwrites the shares and debentures through its
merchant banking division.
 Dealing in Foreign Exchange- The commercial banks are allowed by RBI to deal in
Foreign Exchange.
 Project report- The bank may also undertake to prepare project reports on behalf of the
clients.
 Social Welfare programmes- It undertakes social welfare programmes, such as adult
literacy programmes, public welfare campaign, etc.
 Other Utility Functions- It acts as a referee to financial standing of customers. It
collects creditworthiness information about clients of the customers, etc. It provides
travellers cheque facility.

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2. BRIEF COMPANY PROFILE
ABOUT BANK OF BARODA.

Bank of Baroda is an Indian state-owned banking and financial services company headquartered
in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest bank in India,
after State Bank of India, and offers a range of banking products and financial services to
corporate and retail customers through its branches and through its specialized subsidiaries and
affiliates. During FY 2012-13, its total business was 8,021 billion. In addition to its
headquarters in its home state of Gujarat, it has a corporate headquarters in the BandraKurla
Complex in Mumbai.

The bank was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July
1908 in the Princely State of Baroda, in Gujarat. The bank, along with 13 other major
commercial banks of India, was nationalized on 19 July 1969, by the Government of India and
has been designated as a profit-making public sector undertaking (PSU).

Bank of Baroda is one of the Big Four banks of India, along with State Bank of India, ICICI
Bank and Punjab National Bank.

Company policy

Towards customer-
 Promote good and fair banking practices by setting minimum standards.
 Increase transparency so that you can have a better understanding of what you can
reasonably expect from us.
 Encourage market forces, through competition, to achieve higher operating standards.

 Promote a fair and cordial relationship between you and your bank.

Towards Employees-

 Realizing the value of employees in achieving goals of an organization & fulfilling

the needs of the employees.
 Creating a friendly atmosphere among the employees so that there could be an
interaction and exchange of knowledge among the employees.

11
2.1 Organization History in brief.
Bank of Baroda is an Indian state-owned International banking and financial services company
headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second largest
bank in India, next to State Bank of India. Its headquarters is in Vadodara, it has a corporate
office in the Mumbai.

The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20 July
1908. The bank along with 13 other major commercial banks of India, was nationalized on 19
July 1969, by the government of India and has been designated as a profit-making Public Sector
Undertaking (PSU).

In 1961, Bank of Baroda merged in New Citizen Bank of India. Bank of Baroda also opened a
branch in Fiji.
The next year it opened a branch in Mauritius.
In 1963, Bank of Baroda acquired Surat Banking Corporation in Surat, Gujarat.
In 1965, Bank of Barodaopened a branch in Guyana.
In 1969, the Indian government Nationalized 14 top banks including Bank of Baroda.
In 1980, Bank of Baroda opened a branch in Bahrain and a representative office in Sydney,
Australia. Bank of Baroda also opened an Offshore Banking Unit (OBU) in Bahrain.
Back in India in 1988, Bank of Baroda acquired traders bank, which had a network of 34
Branches in Delhi.
In 1992, Bank of Baroda opened an OBU in Mauritius but closed its representative office in
Sydney. Then in 1992, Bank of Baroda incorporated its operations in Kenya into a local
subsidiary.
In 1996, Bank of Baroda entered capital market in December with an Initial Public Offering
(IPO).
In 1997, Bank of Baroda opened a branch in Durban.
In 2000, the bank has three banking offices, two in Gaborone and one in Francistown. Bank of
Baroda also opened a representative office each at Kuala Lumpur, Malaysia and Guangdong,
China.
In 2005, Bank of Baroda built a Global Data Center (DC) in Mumbai.

12
In 2006, Bank of Baroda established an Offshore Banking Unit (OBU) in Singapore.
In 2008, Bank of Baroda opened a branch in Guangzhou, China (02/08/2008) and in Kenton,
Harrow United Kingdom.
In 2010, Malaysia awarded a commercial banking license to a locally incorporated bank to be
jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. Bank of Baroda also
opened a branch in New Zealand.
In 2011, Bank of Baroda opened an Electronic Banking Services Unit (EBSU) was opened at
Hamriyah Free Zone, Sharjah (UAE). It also opened four new branches in existing operations in
Uganda, Kenya and Guyana.

2.2 Brief details of the top Management- Baroda, CEO.

Mr. Ravi Venkatesan

Mr. Ravi Venkatesan is the founder Non- Executive Chairman of Social Venture Partners
India, a national network of philanthropists addressing social problems through venture
philanthropy. Ravi is a Venture Partner at impact investor Unitus Seed Fund and serves on the
boards of Rockefeller Foundation, Infosys Ltd, and Strand Life Sciences. He is the author of an
acclaimed book "Conquering the Chaos: Win in India, Win Everywhere" published by Harvard
Business Review.

Mr. P. S. Jayakumar, (MD and CEO)

Mr. P. S. Jayakumar, 56 years is a Chartered Accountant by qualification and additionally holds

a Post Graduate Diploma in Business Management from XLRI Jamshedpur. He also has the
distinction of being a CheveningGurukool Scholar through the London School of Economics and
Political Science.

Prior to his appointment as MD & CEO of Bank of Baroda in October 2015, he was the Co-
founder and CEO of VBHC Value Budget Housing (VBHC), a leader in housing for low and
moderate income household from 2009 to 2015. He was also the Co-founder and Non-Executive

13
Promoter Director for Home First Finance Company (HFFC), a housing finance institution
regulated by the NHB, focused on financing customers who are not able to access mortgage
loans from the banking sector.

He is a career banker having spent over 23 years in Citibank in India and Singapore starting in
1986. He has contributed to several innovations in retail banking in India. In addition, he was
associated with the first asset securitization in India in 1991 and the first multi-lingual biometric
ATM for the financially excluded in 2006.

Mr. Jayakumar has held diverse assignments while at Citibank such as Treasurer - Consumer
Bank, Business Development Head covering deposit and lending business, Managing Director
for CitiFinancial Ltd, Managing Director and Head of Citibank Consumer Loan for Asia Pacific
Countries (covering Indonesia, Philippines, Australia, Hong Kong and Korea), Country Head -
Citibank Consumer Business and Head of Balance Sheet Management - Asia Pacific. Mr. P. S.
Jayakumar has also served as a Board Member in many of Citibank’s subsidiaries in India.

Mr. Jayakumar joined Bank of Baroda on October 13, 2015 and has since been steering the
Bank's comprehensive transformation journey currently underway across all aspects - business,
digital and technology, compliance and controls, organization and people.

2.3. Size of the organization (turnover, employees, geographical spread, etc.).

With over 5481 branches globally and staff strength of over 42,000 Bank of Baroda has
continued to retain its leadership position amongst the nationalized banks. The Bank enjoys
strong fundamentals, large franchise value and good brand image. . The sub brand has been
reinforced by alternate delivery channels such as internet banking, ATMs, mobile banking etc.
and robust delivery outfits like Retail Loan Factories, SME Loan Factories, City Sales Office etc.
Bank’s constant endeavor to strengthen its branch/ATM network combined with well-informed
staff offering personalized service at its various touch points have enhanced customer
interactions and satisfaction. Thus the Bank has firmly positioned itself as a technologically
advanced customer-centric bank.

14
In its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of
Gujaratis. The Bank has 107 branches/offices in 24 countries (excluding India) including 61
branches/offices of the bank, 38 branches of its 8 subsidiaries and 1 representative office in
Thailand. The Bank of Baroda has a joint venture in Zambia with 16 branches.

Among the Bank of Baroda overseas branches are ones in the world's major financial centers
(e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a number in
other countries. The bank is engaged in retail banking via the branches of subsidiaries in
Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans has recently upgraded its
representative office in Australia to a branch and set up a joint venture commercial bank in
Malaysia. It has a large presence in Mauritius with about nine branches spread out in the country.

The Bank of Baroda has received permission or in-principle approval from host country
regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish
joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open
offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South
Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri
Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in
the United Kingdom, the United Arab Emirates, and Botswana.

The tagline of Bank of Baroda is "India's International Bank".

15
2.4 Mission and Vision of the organization.

Mission
 To maximize customer satisfaction through well trained staff and to strive to establish a
mutually beneficial and long business relationship.
 To be a top ranking National Bank of International Standards committed to augmenting
stakeholders' value through concern, care and competence.
Vision
 It has been a long and eventful journey of almost a century across 25 countries. Starting
in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate
Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate
governance.

16
3. INDUSTRY ANALYSIS

3.1 POLITICAL, ECONOMICAL, SOCIAL, TECHNOLOGICAL, LEGAL

AND ENVIRONMENTAL FACTORS (PESTLE).

PESTLE analysis is a useful tool for understanding the “big picture” of the environment
in which you are operating and the opportunities and threats that lie within it. By understanding
the environment in which you operate (external to your company or department), you can take
advantage of the opportunities and minimize the threats. Specifically, the PEST or PESTLE
analysis is a useful tool for understanding risks associated with market growth or decline, and as
such the position, potential and direction for a business or organization.

Political Factor -
Government laws affect the state of the banking sector. The overall restrictions, limitations, and
boundaries are taken into account in the banking system. This helps to support the new
investment which will be anticipated from Government. The government can intervene in the
matters of banking whenever, leaving the industry susceptible to political influence. This
includes corruption amongst political parties, or specific legislative laws such as labor laws,
trade restrictions, tariffs, and political stability.

Economic Factor –
The economic factors of PESTEL analysis for bank help to determine the current situation of the
marketplace. You will be able to consider the general position and shape of market. The inflation
and the interest rates and various other conditions will be known by considering the economic
factors. The primary goal of the PESTEL analysis will help in the financial institution which
contributes to the present economic climate.

Social Cultural Factors -

The Social cultural factors affect the scheme, especially in banking sector. You will be able to
determine money related issues and the attitude of the market. Cultural influences, such as
buying behaviors and necessities, affect how people see and use banking options. People turn to

17
banks for advice and assistance for loans related to business, home, and academics. Consumers
seek knowledge from bank tellers regarding saving accounts, bank related credit cards,
investments, and more. Consumers desire a seamless banking experience. And technology is
developing to allow consumers to buy products easier, without requiring assistance directly from
banks.

Technological factors –
The advancement of technology plays a crucial role in the banking industry. It is essential for the
competitive advantage and roves to be core driver for the globalization. Technology is changing
how consumers handle their funds. Many banks offer a mobile app to witness accounts, transfer
funds, and pay bills on smartphones. Smartphones can scan cheques, and the bank can process it
from their end, at their location. This change helps to save paper and the need to drive directly to
the branch to handle these affairs. Debit cards are also changing. Chips have been implemented,
requiring users to insert their card into debit machines rather than swiping them. These changes
make it easier on the user to make purchases without required intrusion from banks. Even banks
themselves are utilizing technology within the workplace. As cyber-attacks continue to plague
businesses, it is banks that are under the greatest scrutiny from the increasing threat. There is no
disputing that cybercrime is at an all-time high. It seems not a day goes by without an
organization suffering a security breach or customers of a major bank having money stolen from
their accounts.One of the main targets for cybercrime is without a doubt banks. In the last year,
banks from all over the world have been hit by hackers.

Legal factors -
Legal factors leave a countless impact on the banking industry. The trade structured, securities
law, note regulations and various legal necessities help to confirm the legal frameworks which
are available in the market. The banking industry follows strict laws regarding privacy,
consumer laws, and trade structures to confirm frameworks within the industry. Such structures
are required for customers in the allocated country and for international users.

18
Environmental –
It is the final and the last step of the PESTLE analysis which allows you to deal with the
environmental platform. To consider the environmental factors you have to consider the various
locations and their impact on the trading which is sponsored by the banking industry. The
climatic changes affect the bank operations and most of the time proves to be a hurdle in many
cases.With the use of technology — particularly with mobile banking apps — the use for paper
is being reduced. Additionally, the need to drive directly to a branch to handle affairs is
minimized as well.Many issues are taken care of through mobile apps and online banking
services. Consumers can apply for credit cards online, buy cheques online, and have many of
their banking questions answered online or by phone. Thus, reducing individual environmental
footprints.

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3.2 PORTER’s Five Forces Analysis –
In 1979 Michael E. Porter of Harvard Business School identified five key forces that
determined the fundamental attractiveness of a market or a market sector in the long term. This
became known as Porter's Five Forces Analysis and it provides a model that enables
organizations to analyze their industry in a way that takes your competitors' activities into
account. This is a vital part of creating a strategy, and it is important that managers understand
how it works and how to contribute to it. One of the most crucial aspects of using this technique
is your organization's ability to define its market properly.

Threat of New Entrants -

The rules and regulations of RBI are very stringent regarding licenses to open up banks
in India. Even the branch banking policy has been liberalized only recently. Due to this it is
not so easy to manage to enter the industry easily by any new player. Though there are

20
many private players eying the industry in the near future. If that happens the
competitiveness in the industry is only going to increase. But the entry to the industry will
always be very strict for a controlled economy like India.
Power of suppliers -
There is no supplier or rather one can put it as a monopoly as RBI is the only
authority for all actions through the Monetary Policy and also the currency in circulation
in the economy. Thus in a monopolistic market the bargaining power of the supplier is quite high
more so the banks are said to be at the receiving end.
Power of Customers -
The customers of the banks are very demanding now. In the olden days the customers did
not have much choice but after privatization and increase in competition in the industry the
customers can have their diverse wants fulfilled by the banks. The banks study and develop
newer products according to the needs of the customers. Thus each bank is wooing the
customers by offering customized products to them and so one can conclude that the
bargaining power of customers is quite high in the banking industry.
Availability of substitutes -
Banks these days do not limit themselves to the traditional banking products of loans
and deposits. The financial sector is innovating products almost every day. Today banks offer
loans for many products like housing, gold, derivatives, Foreign Exchange,
Insurance, Mutual Fund, Demat accounts etc. Given the wide range of needs of the customers
in financial services there is always a need for new product development and
enhancement in them.
Competitive Rivalry -
The competition within the Indian banking industry is very fierce. Since there is not much of
differentiation possible for the services offered due to RBI regulations banks can
effortlessly manage to take away the competitors market share. They are very aggressive in
their marketing strategies and invest enormous amounts in their ad spends. Therefore it can be
easily concluded that the rivalry is very high among the banks in the industry be it co‐
operative, private, public or nationalized banks.

21
3.3 Porter’s Generic Strategies –

Michael Porter, an economic researcher, examined the competitive behaviors that

comprise successful businesses. In the early 1980s, he set out to uncover the ways companies
maintain long-term advantages over their competitors. Through this work he created Porter’s
Generic Strategies, three interconnected concepts that most organizations use to develop key
operating procedures and outmaneuver competitors. Understanding the ins and outs of Porter’s
techniques will offer burgeoning entrepreneurs insight into the mechanisms that create and
dictate most business models.

Micheal Porter identifies three strategies for achieving competitive analysis. They are :
 Cost leadership Strategy.
 Differentiation Strategy.
 Focus Strategy.

Cost Leadership Strategy focuses on increasing profit by reducing the operating cost and
charging lower price. To implement this strategy successfully you will be able to invest in new
technology & also logistics. The bank considers technology as a strategic tool to differentiate
itself from other such as:
 Corporate internet banking.
 ATMs.
 Mobile banking online pass book.
 Online Passbook

Maintaining centralized database and centralized processing for speedy retrieval of data.
Differentiation strategy focuses on making your services attractive and unique in compare to
your competitors. In banking sector they mainly focus on their traditional service such as saving,
fixed deposits, loans, etc. Banking industry gives creative and innovative services and give a

22
proper brand name. The bank differentiated itself from other layers in the industry through its on
three basic parameters. Bank of Baroda is different from other banks by following ways –

1. Comparing with other banks the interest rate which other banks/ private bank gives
to the customer is much higher than the interest rates provided by the Bank of
Baroda. As the customers money are safe and secure in bank of Baroda compared to
private sector banks.
2. Bank of Baroda is different from private banks because of its lower cost of funds,
bigger customer base and customer trust.

Focus strategy concentrates on developing services for niche market. Rather than expanding very
quickly, the bank focused on the niche segment of the customers. The bank catered to a niche
segment which helped it to avoid price competition. Overall it aimed at establishing itself as
knowledge based and technology driven bank that would cater to the needs of emerging Indian
economy.

23
4. Company Analysis

4.1 Strength, Weakness, Opportunities, Threats (SWOT) –

SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities and
Threats. As a company plans its next move, it should consider all of these things before
proceeding. The plan's strengths and weaknesses are factors within the company's control. The
company can then work to make the most of its strengths and eliminate the weaknesses.
Opportunities and threats, on the other hand, are external factors within the community that
could affect the project's success. The company does not have much control over these
situations.

Strength -
1. Bank of Baroda rank 3rd among the nationalized bank.
2. Large number of services and products offered by bank.
3. Core Banking Solution implementation in its branches.
4. International business adds to the credibility.
5. Multiple products and services like internet services.
Weakness -
1. Due to focus on international branches, local focus sometimes gets diluted.
2. Technical issues in Bank of Baroda.
3. Limited market share growth due to intense competition.
4. The customers are not provided with the new plans being introduced in the bank.
Opportunities -
1. International branches give scope to expand in other economies.
2. Expansion in the rural areas.
3. Capturing the youth with internet services and apps.
Threats -
1. New banking licenses by RBI can affect operations.
2. Foreign banks investing in huge numbers can reduce market share of Bank of Baroda.
3. Online facilities are vulnerable to data leaks and loss of confidential information.

24
4.2 7’s Framework to analyze the different aspect of the organization

The 7’s model is represented by seven interconnected circles arranged with six spaced
around the seventh in the center. The network Atomium-like image illustrates well, the network
nature of these dimensions and their inter-relatedness. The sevens are:

25
 Shared Value –
Altogether the industry is very important for the whole economy and is one of the
industries on which the economic growth of country is dependent. Bank of Baroda shares
the cultural values, they see to it that customers’ needs are fulfilled, they promote good
and fair banking services by setting minimum standards.
 Skills –
Highly skilled employees are required in banking industry. The current employees in the
industry are highly skilled and competent. Several training programs are conducted to
train employees to make them updated according to the change in technology.
 Strategy –
The strategy focuses on the range of products and services, to be innovative and excellent
in serving the consumers-hence enabling the industry to increase its influence on the
economy, to increase the market share and hence build a better and fixed loyal customer
following. And to create a good image towards the customers point of view.
 Structure –
The banking in India is well organized with the work, being divided according to a
systematically through the lower level, middle level and top level. Lower level message
is passed to middle level and then to top level. The overall working and function of
banking sector is monitored by RBI.
 System –
The system is strictly regulated and monitored by RBI. The system is simple and smooth
and hence there is simple and efficient functioning in the banking sector.
 Staff –
There are a huge number of new employees every year in the industry. All the staff
employed is highly professional as they are employed after a serious of rigorous training
and a number of interviews. The work force is highly motivated one as the overall
turnover proves this fact. As a whole team member’s opinion are held with high regard.
 Style –
The industry is able to attract the very best staff, and has a demand of them. This is
exactly the view of the highly efficient and effective management team.

26
 4.3 Value chain analysis – Michael Porter introduced the value chain analysis
concept in his 1985 book ‘The Competitive Advantage’. Porter suggested that activities
within an organization add value to the service and products that the organization
produces. If they are run efficiently the value obtained should exceed the costs of running
them i.e. customers should return to the organization and transact freely and willingly.

Marketing Product Transaction

Funding Investment Services

Advertising Payment
Deposits Securities Account
Management

Branding Trading
Credit lending Financial
Products Asset
Management Clearing &
Sales support
Settlements

Insurance

Mutual funds

Other Services
Risk Management

Technology Development

Human Resources

Firm Infrastructure

27
 Marketing –Just like other businesses, marketing also lay an important role in banking
industry. Competition has grown intense in this sector and there are more number of
public and private sector banks in this competitive market. As such marketing becomes
important for banks to avoid the competitive pressures. Attracting and retaining
customers requires more focus on marketing. Like other banks bank of Baroda also
markets their products in the form of advertising. Then the product get famous then they
are branded. The products get famous with the help of sales support. However, its overall
aim is to maximize profits by driving sales higher.
 Advertisement - Advertising helped in attracting people towards bank and
helped them in understanding how banks work especially those people who were
afraid to go to banks with of loss or fraud. Through advertising People become
aware of Bank's offers and keep on availing those offers, which result in large
revenues for Banks.
 Branding –Branding of product helps in establishing goodwill of Banks and thus
making a bank who advertises most, popular over others which results in
people first choice and their trust.
 Sales support - Selling of banking products to clients. Products might include
Credit Cards, Mortgage, Loans or all of these. Prospecting and identifying new
leads and pitching to the clients. Providing best service to existing customers.
They are required to manage all aspects of customer relationships. Strategizing &
implementing ways to achieve sales targets.

 Product –
a. Funding –
Banks basically make money by lending money at rates higher than the cost of the
money they lend. Banks collect interest on loans and interest payments from the
debt securities they own, and pay interest on deposits, Cash deposits, and short-
term borrowings.

28
  Deposits -It is a sum of money lodged in a bank for the purpose of earning
interest. There is two general types of bank deposits: demand deposits and
term deposits. Demand deposits include savings account and current
account & term deposits include fixed deposits and recurring deposits. A
deposit is repayable according to terms of acceptance.
 Credit lending -The total amount an individual may borrow from banks.
Loans are primary sources of generating funds. It is the ways were banks
generate their incomes by credit lending.
b. Investment –
To invest to allocate money in the expectation to get some benefits in future.
Investment banking is a growing sector with more Indians looking to invest funds
in mutual funds and stocks rather than the traditional fixed deposits and schemes.
Investments banks also provide guidance to investors who are willing to invest
their money regarding various investment plans.
 Securities – A security is a negotiable financial instrument that holds
some type of monetary value.
 Financial product – Banks main motive is to its customers with more
financial services. Some of the Basic financial services provided by banks
are-
 Savings accounts
 Debit & credit cards
 Cash management
 Online, mobile, and tablet banking
 Mobile check deposit
 Text alerts
 E-Statements
 Online bill pay

29
a. Services –
 Account management: Account management is mainly used to provide data to
management and to enable informed decision making. Its help to plan and
forecast and to monitoring performance. It also supplies information to functional
authority.

 Asset management: Asset management is the direction of a client's cash and

securities by a financial services company, usually an investment bank. The
institution offers investment services along with a wide range of traditional and
alternative product offerings that might not be available to the average investor.
The account is held by a financial institution and includes checking writing
privileges, credit cards, debit cards, margin loans, the automatic sweep of cash
balances into a money market fund and brokerage services.

 Mutual funds: A mutual fund is an investment method which pools all the
money collected from many investors for the purpose
of investing in securities such as stocks, bonds, money market instruments and
other assets. Mutual funds are operated by professional money managers, who
allocate the fund's investments and attempt to produce capital gains or income for
the fund's investors.

 Insurance: Insurance refers to a mutual agreement or a policy that an individual

purchases from an insurance company by paying premiums on yearly, monthly or
quarterly basis to the insurance company. In return, the insurance company
protects the buyer or the policyholder from any kind of loss or risk that may occur
in the future. Apart from individuals, both public and private sector organization
can purchase insurance to protect their employees. It's basically a kind risk
management scheme by using which the insured person can get protection against
possible eventualities such as loss, sickness, death, loss done to his/her belongings
etc.

30
b. Transaction-

 Clearing-Clearing is the process of updating the accounts of the trading parties

and arranging for the transfer of money and securities. There are 2 types of
clearing: bilateral clearing and central clearing. In bilateral clearing, the parties to
the transaction undergo the steps legally necessary to settle the
transaction. Central clearing uses a third-party — usually a clearinghouse to clear
trades. Clearinghouses are generally used by the members who own a stake in the
clearinghouse. Members are generally broker-dealers. Only members may directly
use the services of the clearinghouse; retail customers and other brokerages gain
access by having accounts with member firms.

 Settlement- Settlement is the actual exchange of money and securities between

the parties of a trade on the settlement date after agreeing earlier on the trade.
Most settlement of securities trading nowadays is done electronically. Stock
trades are settled in 3 business days (T+3), while government bonds
and options are settled the next business day (T+1). Forex transactions where the
currencies are from North American countries have T+1 settlement date, while
trades involving currencies outside of North America have a T+2 settlement date.
In futures, settlement refers to the mark-to-market of accounts using the final
closing price for the day. A futures settlement may result in a margin call if there
are insufficient funds to cover the new closing price.

 Trading – Trading is one of the key features of the global financial economy. It
creates liquidity across the financial markets, is one of the main sources of profit
for investment banks and is done by many institutions at an investment bank,
traders usually work on their own trading floor and do not interact much with the
rest of the departments. Different sectors of trading are referred to as 'desks' and
they cover different products or areas. Some examples of different things traders
deal in are:

31
  Equities - stocks and shares of publicly traded companies
 Fixed Income - bonds, securities and any other fixed income asset
 Forex - currency pairs
 Commodities - oil, metals, food etc.
 Derivatives - options, futures, ETFs, and more

 Payment – Payment system is a mechanism that facilitates transfer of value

between a payer and a beneficiary by which the payer discharges the payment
obligations to the beneficiary. Payment Systems are the medium to transfer funds
from one person to another that facilitate businesses and economies. Payment
system enables two-way flow of payments in exchange of goods and services in
the economy. Payment systems help consumers to transfer funds to each other.
Cash is the traditional and most widely used payment instrument that consumers
use in their daily lives to purchase goods and services.

32
4.4 BCG Matrix –

The BCG Matrix is a chart that had been created by Bruce Henderson for the Boston
Consultancy Group in 1970 to help corporations with analyzing their business units and product
line. This helps the company to allocate resources and is used as an analytical tool in brand
marketing, product management, strategic management and portfolio analysis.

STAR QUESTION MARK

High
 Internet based  Mobile banking.
services.  Mutual fund.
 Card based
services.

Market Growth

CASH COW DOGS

 Retail Lending.  Insurance.

 Investment
Banking.

Low

High Low

Market Share

33
STARS:-

Internet based services and Card based services are the basic business unit or product that have
best market share and generate the cash are considered as star. Because of high growth rate in
deposit and emerging of new Internet based services in Bank of Baroda its considered to be a
growing factor of business.

CASH COW:-

Lending is done by collecting or generating cash from the deposits. Lending is the leaders in the
market place and generates more cash than they consume. These are business units or products
that have a high market share but low growth prospects. Companies are advised to invest in cash
cows to maintain the current level of productivity, or to "milk" the gains passively.

DOGS:-
Dogs hold low market share compared to competitors and operate in a slowly growing market. In
general, they are not worth investing in because they generate low or negative cash returns. Here
insurance is units or products that have both low market share and low growth rate. As there is a
competition in the market regarding to the insurance companies the insurance services provided
by the bank has a low share in the market and the rate of growth is also low.

QUESTION MARKS:-

Mutual fund is parts of a business have high growth prospects but a low market share. They
consume a lot of cash but bring little in return. However, since these business units are growing
rapidly, they do have the potential to turn into stars. Companies are advised to invest in question
marks if the product has potential for growth, or to sell if it does not. Mobile banking is also
comes under question mark as some customers are not satisfied with the mobile banking services
and they also have a fear of losing their money or leaking of their bank details through mobile
banking.

34
 Part B
Research based project

5. Introduction

5.1 Nature of the problem –

 Lack of awareness on credit loans among customers.
 Lack of knowledge on banking services provided to the customers.

5.2 Objective of study –

 To Study the lack of awareness on Credit loans.
 To study about the banking services carried by Bank of Baroda.

5.3 Utility of the study –

The project utility is for Borrower, Customers, Banking Sector and Financial sector.

5.4 Limitations –
While working on this project following limitations and constraints were found
 Sample size was limited due to constraints of time.
 Some respondent were not co-operative they didn’t respond to the questionnaire
very well.
 Some people were not willing to disclose the investment profile.
 Time available with the borrower for interaction was also limit.

35
 6. Methodology

6.1 Approach –
The approach of the project is Analytical based.

6.2 Sources of data -

The method adopted to carry on this report was based on both primary and secondary
sources.
 Primary sources:
 Through personal interaction with the customers visiting to the banks.
 Through telephonic interactions.
 Through interaction with the existing employees.
 Secondary sources:
 By reading manuals of bank.
 Through websites.
 Brochures, leaflets.
 Journals.
 Circulars.

6.3 Method of data collections -

The method adopted to carry on this report is based on primary and secondary sources through
interaction with customers and by taking surveys.

6.4 Size of Sample -

Sample size was limited to 83 responses because of limited time which is small to represent
the whole population.

36
6.5 Method of data analysis -
Data analysis is done in the form of Questionnaire basis by interacting and asking questions and
by making them to fill the form and by making the questions and feeding it in the Google form
and sending the link to others.

7. Context of Industry Problem

This research was done in Bank of Baroda Nerul (East) Branch. Following are the major issue found in
the research:

 Bad loans
 Cyber threats
 Bank fraud
 NPAs have become a grave concern for the Bank of Baroda in couple of years and
impacted credit delivery of bank to a great extent.
 Customers of Bank of Baroda are not provided with sufficient knowledge.
 Customers also don’t co-operate with bank regarding the services being provided by
banks.

37
8. Presentation of Data
The data which I have been collected from Bank of Baroda are in tabulation and Pie-diagram
form. Which show us the consumer behavior or awareness.

 Total number of respondent, based on age groups.

Age No. of respondent No. of respondent (%)

Below 21 4 4.49%
21-34 51 62.2%
34-40 17 20.7%
Above 40 10 12.2%

 The above Pie-Chart shows the maximum respondents are from the age group between
21-34 years.

38
  Number of respondent, based on annual income.

Monthly Income No. of respondent No. of respondent (%)

Below 180000 8 9.8%
180001-360000 3 3.7%
360001-540000 18 22%
540001-Above 7 8.5%
None 24 29.3%
180001-36000 22 26.8%

 The above Pie-Chart shows the annual income of an individual.

39
  Number of respondent, on the basis of banks they are currently banking with

Name of Banks No. of respondent No. of respondent (%)

Bank of Baroda 13 15.9%
Canara Bank 19 23.2%
State Bank of India 17 20.7%
Other 33 40.2%

 The above Pie-Chart shows that the customers are more banking with the banks other
than Bank of Baroda, Canara bank and State Bank of India.

40
  Number of respondent regarding deposits account with bank

Deposits No. of respondent No. of respondent (%)

Yes 75 91.5%
No 7 8.5%

 This interpret show many people are depositing their money in banks.

41
  Number of respondent on the basis of type of account they are dealing with

Type of account No. of respondent No. of respondent (%)

Savings a/c 58 73.4%
Current a/c 12 15.2%
Recurring a/c 4 5.1%
Fixed deosit 5 6.3%

 This shows us that more number of people are depositing the money at savings account.

42
 Number of respondent, prefer to take loans from which institutions

Institution No. of respondent No. of respondent (%)

Private institution 60 74.1%
Public institution 21 25.9%

 From the above diagram, most of customers prefer taking loans from Public sector
banks because of the services being provided to the customers.

43
 Number of respondent, on the basis of different means of sources of information

Sources of information No. of respondent No. of respondent (%)

Television/Advertisement 21 25.3%
Newspaper 25 30.1%
Internet 18 21.7%
Other resources 19 22.9%

 In the above diagram, we get to know the ways the customers get to know about the loan
schemes.

44
  Number of respondent, who had opt for loans

No. of respondent No. of respondent (%)

Yes 53 63.9%
No 30 36.1

 The above diagram shows us that, more number of people are taking loans from various
banks.

45
  Number of respondent, they prefer to take loans from

Name of banks No. of respondent No. of respondent (%)

Bank of Baroda 12 19.7%
Canara bank 17 27.9%
State bank of India 12 19.7%
Others 20 32.8%

 The above diagram states us, that more number of people are taking loans from other
banks rather than Bank of Baroda, State Bank of India and Canara Bank.

46
  No. of respondent, the respondents are aware of the type of loans

Type of loans No. of respondent No. of respondent (%)

Housing loan 64 78%
Personal loan 50 61%
Vehicle loan 45 54.9%
Educational loan 68 82.9%
Mortgage loan 18 22%
Mudra loan 5 6.1%

 The above bar graph shows, the knowledge of the people towards different type of loans.
Here we can interpret that the sample which I have taken the respondent has more
knowledge about the Educational Loan followed by Housing Loan and then Personal
Loan.

47
 No. of respondent, on the basis of key motivating factors of different loan
schemes.

Sources of information No. of respondent No. of respondent (%)

Interest Rate 68 81.9%
Processing Fees 1 1.2%
Existing relationship 7 8.4%
Brand loyalty 6 7.2%
Others 1 1.2%

 By this diagram we can conclude that, the main key factor an individual looks before
taking or issuing for loan is the Interest Rates.

48
9. Analysis and Discussion

 During survey I found that many people not aware with Loan due to the less promotion.
 The maximum respondents are from the age group between 21-45 years.
 People mostly prefer to take loans from private banks.
 The respondents get more information about the banking services and loans through
Newspapers.
 The customers would focus on the interest rates before taking loans.

10. Conclusion
10.1Inferences
From the above study, it can be concluded that majority of the public of Indian society are
dealing with various type of banking institutions. As the awareness on the banking services and
retail loans are low among the customers, this shows the effect on my project. Some people were
not willing to disclose the investment profile. During the study, it was found that the customers
had to wait too long for the loans to get disbursed

10.2 Managerial Implication

The study can be implied to understand practicality of banking services and also about credit
loans. To pay attention to different banking services quality and continuously improve them for
customer satisfaction and retention.

10.3 Recommendation for actions

The organization overall is having a very good environment and have their own organizational
culture which is very rigid. They find it really difficult to accept the opinion of third party or any
outsiders. The credit lending department is finding difficulty dealing with the customers, as there
is lack of knowledge regarding the banking services being provide by the bank. There should be
more number of staffs in each department. Some efforts should be made at local level to make
the loan more popular in the area. Bank should try to expand agency as it is not available in
many villages of area.

49
 Part C –Learning’s and Takeaways
1. Application of concepts, tools, techniques and skills learnt at
PIMSR.

PESTLE analysis is a strategic planning method to reduce business threats. By examining the
Political, Economic, Social, Technological, Legal, and Environmental factors, firms will
gain valuable advantages. These advantages help with the idea phase, product development,
product launching, content marketing strategies, and other factors, to increase success.
The advantages of PESTLE analysis involve being cost effective, providing a deeper
understanding of business, alertness to threats, and a method to exploit opportunities.

A SWOT (strengths, weaknesses, opportunities and threats) analysis can help you identify
and understand key issues affecting your business, but it does not necessarily offer solutions.
You should be aware of the limitations as well as the benefits of a SWOT analysis before you
decide to conduct one. Knowing what you can reasonably expect to achieve will make the
SWOT analysis more useful for your business, and will save you time. Ultimately, you must
be prepared to spend the time to review your SWOT analysis and use it to determine the best
way forward in your business. The main advantages of conducting a SWOT analysis is that it
has little or no cost anyone who understands your business can perform a SWOT analysis.
You can also use a SWOT analysis when you don't have much time to address a complex
situation. This means that you can take steps towards improving your business without the
expense of an external consultant or business adviser.

According to PORTER, the origin of profitability is identical regardless of industry. In that light,
industry structure is what ultimately drives competition and profitability —not whether an
industry produces a product or service, is emerging or mature, high-tech or low-tech, regulated
or unregulated.

50
If the forces are intense, as they are in such industries as airlines, textiles, and hotels, almost no
company earn attractive returns on investment, Porter wrote. If the forces are benign, as they are
in industries such as software, soft drinks, and toiletries, many companies are profitable.

Porter regarded understanding both the competitive forces and the overall industry structure as
crucial for effective strategic decision-making. All the tools techniques and skills acquired from
PIMSR have been really been helpful throughout the internship because all those concepts have
been really played a greater role in adding value to the company as well myself in understanding
various aspects with different perspective.

2. Mention new knowledge, tools, techniques or skills that you may have
picked up.

 To study about the different types of loan.

 To study about RTGS (Real time gross settlement)/ NEFT (National electronic fund transfer)
and also about DD (Demand Draft).
 To study various banking services such as:
 Account opening
 Fixed deposits
 Current account
 Saving account

3. Any augmentation of soft skills such as building interpersonal

Relationships.

Being part of the internship i could not only build good professional relationship with the
staffs and management but also could build good personal relations with the staffs as well as
other people who are the partners of the company in which i have worked in. Also the mentor
and managing director had been very supporting throughout the internship guiding me
throughout the 60 days duration. They not only helped through professional front but also
helped me to understand the expectations of market place from a fresher. This has not only

51
 helped me in building up my communication skill but also has helped me in learning the art
of time management, also it taught me how observant one must be in order to recognize or
identify the opportunities surrounding us. Learn to understand customer behavior and
preference. Help to learn networking with employees. Interacting with customer. Being a
management it’s not only important to have technical knowledge about the subject matter
also must develop leadership skill as well as must be good working in a team.

4. Any directions for future learning or career path that you may like to
pursue.
 During internship I have got a hand on experience to interact with a lot of people from
various backgrounds and having different qualification.
 I am interested in making my career in banking industry as I have got a basic knowledge
regarding the banking industry.

52
Reference

 https://www.ibef.org › Indian Economy

 https://www.ibef.org/industry/banking-india.aspx
 kalyan-city.blogspot.com/2011/04/functions-of-banks-important-banking.html
 http://www.bankofbaroda.co.in/
 http://wap.business-standard.com.
 http://econimictimes.indiatimes.com
 Credithttps://www.investopedia.com/terms/c/credit.
 http://www.investorwords.com/8613/home_loan.html#ixzz5IZX0i0Vh
 https://www.myloancare.in/lp/lp-home-loan.php
 https://www.opploans.com/personal-loans/installment-loans/
 https://bankofbaroda.com/history

 https://www.wallstreetoasis.com/finance-dictionary/trading-overview
 http://www.technofunc.com/index.php/domain-knowledge/banking-
domain/item/different-types-of-payment

 Bank of baroda, book of instruction,Volume-16, Bank Publication-20, Updated on-31-12-

03

53
Annexure
1. Age
o Below 21
o 21-34
o 34-40
o Above 40
2. Annual Income
o Below 180000
o 180000-360000
o 360001-540000
o 540001-above
o None
3. With which banks are you banking currently?
o Bank of Baroda
o Canara bank
o State bank of India.
o Others
4. For how many years have you been associated with your banks?
o 1 year
o 1-5years
o More than 5 years.
5. Do you have any deposit account with bank?
o No
o Yes
6. If yes what type of account is it?
o Savings account
o Current account
o Recurring deposits
o Fixed accounts
7. From where would you prefer taking loans?

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o Private institutions
o Public institutions
8. How do you come to know about the different type of loans schemes of the bank?
o Television/ Advertisement
o Newspaper
o Internet
o Other resources
9. Do you have taken any loan?
o Yes
o No
10. If yes, from which bank?
o Bank of Baroda
o Canara Bank
o State Bank of India
o Other
11. Which type of loan are you aware of ?
o Housing Loan
o Personal Loan
o Vehicle Loan
o Educational Loan
o Mortgage Loan
o Mudra Loan
12. Which key factor do you will consider while taking loan?
o Interest Rate
o Processing fees
o Existing relationship
o Brand Loyalty
o Other.

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