AWARENESS LEVEL, EXTENT OF USAGE AND SATISFACTION OF CUSTOMERS

CHAPTER- 5
MARKETING STRATEGIES OF SELECTED BANKS

5.1 Introduction
5.2 Principal Aspects of Bank Marketing
5.3 Marketing Strategy in Banking Sector
5.4 FederalBank
5.5 Dhanlaxmibank
5.6 South Indian Bank
5.7 Catholic Syrian Bank
5.8 Canara Bank
5.9 State Bank of Travancore
5.10 ICICI
5.11 Conclusion

5.1. Introduction
Bank marketing is the aggregate of functions, directed at providing
services to satisfy customers’ financial (and other related) needs and wants,
more effectively and efficiently. This aggregate of functions is the sum total of
all individual activities consisting of an integrated effort to discover, create,
arouse and satisfy customer needs. This means, without exception, that each
individual working in the bank is a marketing person who contributes to the
total satisfaction to customers and the bank should ultimately develop
customer orientation among all the personnel of the bank. Different banks
offer different benefits by offering various schemes which can take care of the
wants of the customers. Marketing helps in achieving the organizational
objectives of the bank. Indian banks have duel organizational objective –
commercial objective to make profit and social objective which is a
developmental role, particularly in the rural area.
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Marketing concept is essentially about the following few things which

contribute towards banks’ success:

1) The bank cannot exist without the customers.

2) The purpose of the bank is to create, win, and keep a customer.
3) The customer is and should be the central focus of everything the banks
does.
4) Ultimate aim of a bank is to deliver total satisfaction to the customer.
5) Customer satisfaction is affected by the performance of all the employees
of the bank.

All the techniques and strategies of marketing are used to induce the
people to do business with a particular bank. This philosophy demands the
satisfaction of customers’ needs as the pre-requisite for the existence and
survival of the bank. The first and most important step in applying the
marketing concept is to have a whole hearted commitment to customer
orientation by all the employees. Marketing is an attitude of mind. This means
that the central focus of all the activities of a bank is customer. For developing
marketing philosophy and marketing culture, a bank may require a marketing
coordinator or integrator at the head office for effective coordination of
different functions, such as market research, training, public relations,
advertising, and business development.
5.2. PRINCIPAL ASPECTS OF BANK MARKETING
 Customer Oriented Services
Services offered by the banks are to be worked out in such a manner that
they fulfill the needs of the customers. Traditionally, bankers have been
accustomed to think in terms of what banks can offer and not what customers
want. However, bank marketing concept requires them to change this
orientation, and start working out schemes and services by keeping changing
customer needs as the focus of their new and novel products. In order to design
and deliver customer needed services, the banks must learn to seek information
about the existing and potential customers, and their perceived and latent needs
on a regular and systematic basis.

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 Design & Delivery of Such Services

The word design implies that good marketing services need to be
properly designed and crafted so as to suit a particular well-defined group of
clients. Moreover, such properly designed services must be properly traded.
The quality of delivery is to be ensured not only through focused
advertisement, but also through proper customer services offered at the bank's
retail outlets. Customer satisfaction is a dynamic process and it is necessary to
keep pace with rising expectations of the customers. Further, the development
of IT and spread of Internet are opening up newer mechanisms of customer
contact and services.
 Corporate Objectives of the Bank
The corporate objectives of the bank are to be worked out within the
broad framework of the national policy.
 Environmental & Other Constraints
Environmental and other constraints play an important role in bank
marketing decisions. Generally, the environmental constraints fall into four
categories: Economic, Cultural, Legal and Political. Thus, the knowledge of
environmental constraints is an essential factor in the designing and delivery of
various types of customer-oriented schemes and services.
5.3. Marketing Strategy in Banking Sector
 Consumer Behaviour and Segmentation
Banks deal with individuals, group of persons and corporate, all of
whom have their likes and dislikes. No bank can afford to assess the needs of
each and every individual buyer (actual or potential). Segmentation of the
market into more or less homogenous groups, in terms of their needs and
expectations from the banking industry, provides a solution to this problem.
This involves dividing the market into major market segments, targeting one or
more of this segments, and developing products and marketing programs
tailor-made for these segments. In the process of segmentation, the market can
be divided into major segments which are gross slices of the market, or into
smaller specially formed segments, otherwise known as niches. Niche
customers have a specific set of needs which the marketer tries to address.

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While a market segment attracts several competitors, a niche attracts fewer

competitors and therefore, a company should clearly define its target segment
and devise strategies to target the customer, so that it has a competitive
advantage in the segment. An important criterion for market segmentation in
the economic system in which we find agricultural sector, industrial sector,
services sector, household sector, institutional sector and rural sector requiring
weightage while segmenting.
 Customer Relationship Management
The marketing strategy consists of a very clear definition of prospective
customers and their needs and the creation of marketing mix to satisfy them. A
recent development in this regard is Customer Relationship Management
(CRM). It is a business strategy to learn more and more about customer
behaviour in order to create long term and sustainable relationship with them.
 Identification of Target Customers & their Needs
This is an important area in formulation of a marketing strategy. Unless
the bank has clear idea about the customers it wants to serve, it is not possible
to work out products to satisfy their needs. This identification process
involves: -

Finding out profile of present customers in terms of their education,
occupation, income, geographical location, population group, age,
sex, marital status, products and services their purchase, their habits,
tastes & preferences, their businesses & future prospects ,etc.

Finding out opinions of existing customers about the services
provided by the bank and their suggestions for improvement in
present services and introduction of new service.

Collecting such information from the persons who are not currently
customers of the bank. All this can be done by conducting a survey
of customers and non-customers of the bank. Moreover, this process
of seeking information about the market must form an integral part
of the system and must be done on a regular basis. The survey
would give valuable information about profiles and opinions of
customers and non-customers of the bank, and it can be analysed to

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find out the target group of the customers and their felt and latent
needs.
In this chapter a brief description is made of the marketing strategies
adopted by the sample banks.
5.4. Federal Bank (FDRL)
Federal Bank Limited is a major Indian commercial bank in the private sector,
headquartered at Aluva, Kochi, Kerala. It is the fourth largest bank in India in
terms of capital base. New customer acquisition and relationship-strengthening
constitute the two pronged growth strategy of Federal bank. The bank is a key
player in economic development of the state with an asset base of Rs.74594
crores,deposit of Rs.59731 crores, advance of 43436 crores and a network of
1174 branches and 1359 ATMs as on 31/03/2014.
5.4.1. Product Strategies
A product is a bundle of physical, service, and symbolic attributes
designed to satisfy consumer wants. A product is more than a person, place or
thing. Nothing is more important to a marketing strategy than the "product
concept".
Products and services
 Deposits – Taking into consideration the varied preference of the
customers, the Bank offers a host of deposit products to its customers,
including Non-Resident Indians. The products include savings Bank
accounts, current deposits, time deposits and recurring deposits with
suitable variations for customised products targeting different groups
like students, salaried employees and senior citizens. Thrust was given
for expanding the retail deposits portfolio by acquisition of retail
customers, specially focusing on Savings Bank and Current Accounts.
Keeping pace with the changing expectations of the customers, the
Bank reviews the products and services on an on-going basis. As per
the banking policies and practices, every bank follows different forms
of products with different names.

FDRL offers a wide range of deposits to suit the needs of

customers.With wide network of branches and ATM centres all over the state

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and facility of E channels like internet banking and mobile banking FDRL
brings banking at customers doorstep.
FDRL offers a wide range of Savings accounts with smart features like
Internet Banking, fund transfers, e-statements, online bill payments to make
banking a smoother experience.The details regarding the different forms of
deposit products given in Table 5.1 and 5.2.
TABLE-5.1
RANGE OF PRODUCTS UNDER SAVINGS DEPOSIT
Minimum bal
S.no Name Target group
(AQB)
1 Freedom SB INDVS and all others 1000
permitted by RBI
2 Fed Excel PROFNS,budding ENTPS zero
3 Mahilamitra WMN 5000
4. Fed smart INDVS 1,00,000
5 Young Champ CHLDN nil
6 SB plus dynamic consumer 5000
7 Fisa Institutional Savings Trusts, Assn , clubs etc. 5000
8 Fed Classic SAL INDVS Zero balance
9 Fed Classic Premium high end SAL INDVS Zero balance
Source-primary data
TABLE-5.2
RANGE OF PRODUCTS UNDER DEPOSIT ACCOUNT
S.no Name Period Amount Loan facility
1 Fixed deposit 7days-10yrs 1000 AVL
onwards
2 Federal cash certificate 6 months-10yrs 1000 AVL
onwards
3 Federal Tax Savings 5 years 100- Not AVL
Deposit 1,50,000
4 Federal Savings Fund(RD) 6 months-10yrs 50 onwards AVL
5 Millionaire Federal Savings 3yrs-10 yrs. 5,222 AVL
Fund(RD)
Source-Primary data

Loans- FDRL offers different forms of loans such as home loans,car loans,
gold loans and other loans.The details of housing and gold loan schemes of
FDRL is given in table-5.3.

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TABLE-5.3
HOUSING & GOLD LOANS
S.no Name of scheme REP Maximum ROI
PRD Amt.
1 Federal HL 30yrs 1500 lacs Upto75lacs10.2+
.15%Above75lacs
10.2+.30% of
BR+.40%
2 Property Power 15 yrs. 5 crores 10.2 + 3.20%
to BR +5.10%

3 Purchase of plots 60mts 25 lakhs 10.2+.15%

4. House Warming Loan 60mts 2 lakhs 10.2+.15%

1 Federal G.L 12mts 75lakhs 10.2+3.80

2 Federal Special G.L 6 mts. 75lakhs 10.2+3.80

3 Diva Gold(for women) 6-12mts 100 lakhs 10.2+3.80

4. Apna Gold 24 X 7(loan 12mts 75 lakhs 10.2+3.80

through debit card with
overdraft facility
Source-primary data

Note-up to 2 lacs SB a/c not required. Amount per each gram differs in each
scheme of gold loans.

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TABLE-5.4-OTHER LOANS
Purpose REP PRD Eligible persons
Shubh Yatra travel abroad 12 - 33 months INDVS or FMLY
Loan MEMBS.
Bon Voyage initial expenditure 60 mts. DRS, NRS, ENGS,
loan involved in going other PROFNS etc.
abroad
Special Vidya higher studies in Mortm prd + 5 STUDS
Loan India & Abroad to 7 Yrs.
Federal Career Pursue higher edn, 12yrs INDVS
Solutions Loan vocational training (Rep.prd-
courses etc. 60mts)
Federal Easy used for any Upto 72 persons holding the
Cash (against personal/lawful months securities.
BANK DEPS, needs
LIC PCY, etc.)
Fed Rise used for any Up to MTY dt RD holders
(OD against personal/lawful of RD or 120
RD) needs mts. whichever
is lower
Aashray Loan for any personal 10 to 15 years SNR CITZSof India
use other than who own a self-
speculative trading acquired property in
and/or business India
Loan against Loans are provided Up to the prd CUSTS having
Fixed Deposits againstFD,CC&RD of security FD,CC,or RD
RD Xtra Gain used for any Upto 60 Existing CUSTS
personal/lawful months who have already
needs remitted 12
installments
Source-primary data

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 BANKING SERVICES-FDRL provides the following services-

 ATM services
 Internet banking
 Mobile banking
 Tele banking
 Safe deposit lockers
 Mobile alerts
 Demat services
 Card services-Master card, Visa card, international debit card,cash
passport travel card, gift card(Fed light)
 Electronic clearing service (ECS).

5.4.2.MARKETING STRATEGIES OF FDRL

The Bank views the retail advance portfolio as a means of increasing its
customer base and increasing its average yield on advances. Toward this end,
the Bank has implemented various strategies including launching of new
products as well as alternate channels of credit marketing and delivery.During
2012 the bank introduced an innovative product, Apna Gold 24*7, which
earned the attention of the market and the product won two international
awards for innovation in concept and technology. During the same year the
Bank also introduced housewarming loans – a first-ofits-kind in the country
and A twin product, RD Extra Gain that encourages savings habits and also
takes care of the loan requirements of the customers. The Bank has launched
its prepaid card variants – Gift Cards and Travel Cards. Gift Card titled
‘FeDelight’ is issued in association with MasterCard. Bank’s foreign currency
denominated ‘Cash Passport’ Travel card is issued in three currencies viz.
USD, GBP and Euro.

Through Own Your Gold scheme, the Bank is facilitating purchase of

Federal Bank Pure Gold coins at current market price, with easy repayment
options. ‘Federal Aashray’, the Bank’s reverse mortgage loan product, is
envisaged to be a support to Senior Citizens in their time of need. The Bank
also offers Depository Services and e-trade facilities for investors. The Bank

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has also been actively involved in the sales of Third Party products .The Bank
now has associated with Bajaj Allianz General Insurance Company to
distribute General Insurance products across their branches.

As part of extending personalized and customized services to High Net

worth customers, the Bank has been providing Priority Banking Services
across various branches. The special service “FedSelect”is presently available
at selected branches and the Bank plans on extending this service to more
branches. This service has taken the banking to a whole new level, complete
with special banking lounges and dedicated Customer Relations personnel.
Taking convenience to a never- before high, the Bank also offer Home
Banking services under this facility.

The Bank has launched the micro insurance scheme ‘Federal Suraksha’
exclusively for the under-privileged sections of the society. This scheme
provides insurance cover against accidental death and fire and burglary of
household items;the premium amount payable is as low as Rs.17 per year for a
cover of Rs.50,000.

NRI Business
During the fiscal ended 31.03.08, the first representative office of the
Bank was opened in Abu Dhabi, bridging the gap between the Gulf and our
country. The representative office acts as Bank’s gateway to GCC countries,
offering service and support to NRI customers in that region. The bank has
also launched a new remittance channel for web-based transfer of funds from
USA - Fed India RemitService (FIRSE). The bank has established another link
between the Bank and NRI patrons through ‘Federal Link’, the e- news letter.
The premium deposit product ‘Rupee Plus’ launched during the latter part of
the 2012-13 was well accepted by the Bank’s patrons. The representative
office and young team of IBTO’s abroad could reach out to Bank’s clientele
offering services and support abroad. The Bank continued to be a major player
in channelising / routing inward remittance and is much sought after by
exchange Houses and banks from Saudi Arabia & Qatar. The

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Bank’s flagship product ‘Fed Flash’ which is real time [server to

server]launched during the year 2013 has attracted all major remittances. SMS
to remitter along with the beneficiary was a value addition introduced to the
customers by the Bank.

The Bank has appointed business development managers in all the zones
across the country as part of its strategy to have a focus beyond Kerala.
Arrangements with Master card to offer Business class lounge facilities to HNI
customers at seven airports in India are in place. Value-added services were
launched by the Bank enabling NRI patrons to avail a bouquet of services
tailor-made for them like holiday planner, tax advisory services, healthcare
services and online religious offerings. Crorepathi and multi Millionaire FSFs,
Recurring Deposit products launched by the Bank, were well accepted by NRI
patrons.

5.4.2.1.Business Outlet Expansion

The bank has a national network of 1174 branches and 1359 ATMs
across India as on 31st march 2014.

5.4.2.2.Ultra Small branches.

Federal Bank has launched four low-cost intermediary ultra small
branches in un-banked villages in Kerala which act as customer service points
for the business correspondents appointed in these areas. Through these
branches, Bank will be able to reach out to the villagers and offer a bouquet of
banking services suitable to them.

5.4.2.3.Business effectiveness through technology

All the branches and offices of the Bank are running on Core Banking
Solution, offering anywhere banking facilities from all its branches. Bank
offers multiple delivery channels like Internet Banking (FedNet),Mobile
Banking, ATM network, Visa and Master Debit Cards, Mobile and E-mail
alert service, Electronic bills payment system, Tele-Banking Facility, Point of
Sale terminals etc.,An express remittance facility - FedFast - is offered to NRIs
for

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inward remittance from gulf countries. The innovative award winning product
‘Fed book’ introduced by the bank during 2013-14 helps customers to view all
the transactions in their bank accounts. This electronic version of a traditional
bank pass book is user friendly, secure and enables real-time access to
transactions on a 24x7 basis, which liberates users from the restrictions of
business-hours and bank holidays. FedBook is made available in 4 platforms
ie.Android, iPhone, Windows, Blackberry.

Online Account Opening for Resident Customers-Bank has introduced SB

online account opening for resident customers. Customers can open an account
in just 3 steps.

Click-2-Sanction: Click-2-Sanction is the Retail Loan Online In-principle

Sanction application which enables branches to assess a customer for
Home/Car loan Virtual Account System (VAS).Virtual Account System is an
e–collection product designed to streamline remittance of funds by the clients
of customers to their collection accounts.

Online Retail Loan Lead Generation-With a view to capture the genuinely

interested category of customers,the Bank introduced an online lead
generation application on it’s website. Through this application, prospective
customers can apply for Home Loan, Car Loan and Property Power. The
prospective customers will be contacted and genuine leads will be pushed to
Branch’s CRM module.

With 100% interconnectivity of its branches, the Bank offers the RTGS /
NEFT services across its entire branch network through its internet banking
platform. The Bank offers bill payment, e-ticketing and e-com facilities to its
customers. Customers now have the convenience of being able to transact on
any ATM in the country. Visa Money Transfer – a first of its kind in India – is
a facility which allows customer to transfer money using credit/debit card .

The Bank is now a member of National Payment Corporation of India

(NPCI) and all the ATM Inter change transaction for the NPCI member Banks

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are routed through NPCI. The Bank is also the sixth member Bank to join the
IMPS initiative of NPCI.

A 24x7 call centre with toll-free number has been set up for customer
assistance and redressing.

5.4.2.4. Marketing Initiatives

Marketing Department in the Bank was created with a view to streamline
operations in the following area:

a) Branding & Standardization

b) Advertising
c) Public/ Media Relations
The Department has successfully added the visibility of the ‘Federal
Bank’ brand. In order to match steps with the changing world, the Bank
ushered in a change, in terms of branding and positioning of the ‘Federal
Bank’ brand. The welcome screens at ATMs were also changed and the
screens carried messages in regional languages, based on the locations of the
ATMs.
5.4.2.5. Cross Selling and Marketing Initiatives
The Bank used various media like television, print, radio, digital and
OOH (Out of Home) to reach out to new and existing customers. The Bank
used ‘Search Engine Marketing’ and ‘Search Engine Optimization’ to generate
customer leads. The leads were followed up by the sales team of the Bank
spread across the country and beyond and the leads were converted into sales.
The CRM tool deployed by the Bank was used to track the leads.

5.4.2.6. Exploring Social Marketing

The Bank is strengthening its presence across the social media, viz-
Facebook, You Tube and Twitter and its Facebook page has generated more
than 2 lakh followers. The Bank intends to intensify its focus in the digital
marketing space.

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5.4.2.7 Financial Literacy Centres

The Bank has setup 19 Federal Ashwas Financial Literacy centres in
Kerala with an aim to educate the public in rural/semi-urban and urban areas to
promote financial literacy, intelligent borrowing and to save the small
customers from debt trap by offering preventive and curative credit
counselling.
5.4.2.8. Organisational Restructuring
With the increasing competition and the rising customer demand, the
organizational structure was redesigned. In the new ‘GO-TO-MARKET’
structure, 13 regional offices were restructured to 8 Zonal offices and 31
regions with the view that a Regional Head with controllable number of
Branches under him in geographical proximity can bring in better results. The
reporting of 18 Regional Credit Hubs were re-assigned to the National Credit
Hub head, under the administrative control of respective Zonal Heads.

5.4.3 Human Resources

The total Human Capital of the Bank has increased to 10467 by
inducting 408 new entrants in various positions during the financial year 2013-
14. The average age of employees of the Bank is now 38 years. The male
female ratio of the Bank is 66:34.

5.4.3.1 Review of Human Resource Performance of Bank-(Internal

marketing strategy)

5.4.3.1.1. Recruitment- Recruitment of the bank has conducted through

various channels. This included lateral hiring as well as campus recruitments.
Various processes such as newspaper advertisements, advertisements in job
portals were utilised to make Federal Bank visible as an ideal employer.
.
Bank has entered into a tie up with Manipal Global Education Services
for a one year residential programme, to mould a group of highly capable and
job ready prospective workforce to take on the various challenges in the Bank.
The first batch of 107 students was inducted after a structured selection
process involving a written test, group discussion and personal interview.

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5.4.3.1.2 Performance Management System (PMS)

To assess employee performance and to foster employee growth and

development, a Performance Management System has been introduced. The
Fed PMS online platform was launched to make the process easier and more
effective.

5.4.3.1.3 Communication

HR Road show titled ‘Bodhi’ was conducted across the Bank to share
the experience of line managers in different facets of the HR Management, and
inculcate in them the tenets of leadership and responsibility. The HR
leadership interacted with the line managers reiterating their role in leading
their team and developing people capability. Suggestions from the programme
formed the base to redesign the established HR policies and programmes.

An online platform titled HR Direct was launched to address HR-related

queries within a stipulated time frame. Another platform named ‘Managers
Speak’ was also rolled out for managers to express their feedback, suggestions
and concerns to leaders of the HR Department.

‘Federal Reach’, an in-house magazine published quarterly, released four

editions in 2013-14 with wide participation of the employees and their family
members.

5.4.3.1.4. Elixir - Unique Mentoring Program

A refined mentoring program was launched to groom and develop the

young inductees as well as Probationary Officers into the new culture. The
program is intended to mould and guide the young talents along the right
trajectory and to ensure a smooth cross over into the new environment. Online
module for mentoring has been launched and this will enable free flow of
communication between mentor and mentee.

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5.4.3.1.5 Recognition Programs

A reward and recognition system was started in the Bank to motivate

performance. Long term and short term recognition programs were designed to
cater to the different recognition needs of the employees. Various recognition
programs were also rolled out to recognize and reward individual and
collective performance which includes;

Federal Ambassador – Through this unique program bank aimed to

motivate the levels of customer service at customer interface points at
branches / regions and the results were published online.

ii) Federal Elite Trophy - This award is meant for the best performing
business Unit. Best business units of the Bank were recognised across all
regions, zones and corporate level. The entire team of the best corporate
business unit was offered a trip to a foreign location in recognition of
their efforts and also to motivate the people to perform better.

iii) Federal Falcon – This award will be given to the best unit
supporting business.

iv) Appreciation Forum – This forum has been designed to give real
time appreciation to an individual for a job well done. The forum has
been already launched and has become an instant hit among the Federals.

5.4.3.1.6. Enhancement in Staff Welfare and Allowances

During the year Bank has substantially increased various allowances and
benefits to its staff, and continues to be one among the best in the Industry.
Fed Care – a group medical insurance scheme for retired employees was
launched on the auspicious occasion of 67th Founders Day. 1221 retired
employees were covered under this scheme. The Bank has implemented a new
pension scheme to all employees who joined the services of the Bank on or
after 01/04/2010.

5.4.3.1.7. Training and Development

On the training front, the bank introduced innovations and refined the
pedagogy. Pedagogy was re-oriented into experimental in nature with live case
studies and group presentations by the participants.

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5.4.3.1.8. Fed Campus

Online Quizzes for the Employees of the Bank in different cadres was a
significant initiative in enhancing the knowledge level of Employees. The
bank has conducted 36 online Quizzes and on an average 238 Employees
participated in one quiz. During the year 2012, the Bank conducted 94 training
programmes covering 3,016 personnel. In addition it also nominated 408
personnel for 147 programmes at outside institutions.

The learning programmes could be broadly classified into; Programmes

imparting skill in orienting the new entrants with the culture, ethos, values etc.
about the Bank and a hassle free induction on the new entrants into the Bank
and programs imparting technology skills including FINACLE and
technology.

5.5.DHANLAXMI BANK

Dhanlaxmi Bank is an old private sector bank headquartered in Thrissur

City, Kerala, India.The bank was focusing mostly on Southern states like
Karnataka, Tamil Nadu, Andhra Pradesh and Kerala but it is looking for a pan-
India presence since the last few years.Dhanlaxmi Bank has deployed
Centralised Banking Solution (CBS) on the Flexcube platform at all its
branches for extending anywhere/anytime banking to its clientele through
multiple delivery channels.

5.5.1.Product Strategies of DLB.

The bank offers wide range of personal banking products and services
such as deposit, saving, loans, internet banking, mobile banking, demat
services, credit card, debit card, etc. Dhanlaxmi Bank also caters its banking
products and services to NRI customers, such as deposit, car loans,
remittances, investment schemes, insurance etc. It provides a range of products
and services to corporates.

 Deposits -To suit the needs of different segments of customers DLB

offers a host of savings and deposit products. Table 5.5 and 5.6 show the
range of savings and fixed deposits.

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TABLE-5.5
RANGE OF PRODUCTS UNDER SAVINGS DEPOSIT
Name Target group Minimum
bal)
Dhanam Preferred INDVS,TRTS,SCTS,CLBS/ASSNS,MNRS 5000 P/m
Dhanam Premium INDVS,TRTS,SCTS,CLBS/ASSNS,MNRS 10,000
Dhanam + and ++ INDVS 5,000
Savings account
Dhanam Privilege INDVS,TRTS,SCTS,CLBS//ASSNS,MNRS 25,000(AQB)
Dhanam Basic INDVS,MNRS NIL
Savings Bank Deposit
Smart Salary Savings INDVS,TRTS,SCTS,CLBS/ASSNS,MNRS NIL
Account
Regular Savings INDVS,TRTS,SCTS,CLBS/ASSNS,MNRS 1,000
Account
Source-Primary data
TABLE-5.6
RANGE OF PRODUCTS UNDER FIXED DEPOSITS
Period-
Amt(min/m Eligible
Name Min/MA Loan
ax) persons
X
Dhanam dependin 100-no lmt AVL INDVS,TRTS,SCTS,CLBS/ASSNS
Abhivridhi g on the ,MNRS
card
rates
CumulativeDep 6-60mts 500p/q-no AVL INDVS,TRTS,SCTS,CLBS/
osit Certificate lmt ASSNS,MNRS
(DCDC)
Surabhi Deposit 180days 10,000- LNKD INDVS,TRTS,SCTS,CLBS/ASSNS
no lmt to ,MNRS
SB/CUR
Tax Advantage 5-10yrs Not
100-1lac INDVSand the Karta of HUF
AVL
Insta Money 15days- 10,000-no O/D INDVS,TRTS,SCTS,CLBS/
60mts lmt AVL ASSNS,MNRS
(upto90
%)
Sri Dhana 15days 5000-no lmt AVL INDVS,MNRS with
Chakra Deposit Guardian, corporate bodies.
Senior Citizen’s 180- 1000-no lmt AVL Indian nationals aged 60 and above.
Deposit 500days
Laxmi 12mts- 1000 NA INDVS, firms, CORPS,CLBS
Recurring 120mts
Deposits
 Loans-The bank offers variety of loans and advances to suit the needs of
different segments of customers.

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There was a conscious shift in focus during the year2012-13 from

corporate segment to SME and Retail sectors. Retail exposure is mostly in the
segments of mortgage, vehicle loan,gold loan, education loan and other
commercial loans. Bank has developed an array of parameterized retail credit
products to suit the requirements of retail customers. Customized credit
products are available for individuals, traders, contractors, businessmen,
professionals, etc. The products are mostly decentralized and are offered
through the branch channels. During 2012-13 the bank has Introduced a new
gold loan product that facilitates greater flexibility through provision of partial
release of ornaments and redeposit of ornaments without any restrictions.
Credit of NEFT proceeds directly to the loan accounts of the customers was
also enabled. The bank also waived the foreclosure charges/pre-payment
penalties on home loans on floating interest . A new loan product ‘Dhanam
Green Loan’ for funding purchase of solar power equipment was introduced
with a view to promote use of non-conventional energy sources among the
customers.
The details of loan products of DLBis given in Table -5.7
TABLE-5.7
Loan products of DLB

Scheme Amt ROI Procg.charges REP PRD

HL Against income 11.75% 1.00 % of LA+ ST(subject 3 -20Yrs
of the client to minRs. 10,000 +ST)

Loan Asper the value 11.75 1.50 % of LA+ST (subject 3-15Yrs

Against of home to min of Rs. 10,000 + ST)
Property

CL-New Car 85% of cost 12.75 1% of loan 12-60 mts

PL 1 lac to 15 lacs 14 2.5% of LAsubject to a 12-60mts
min of Rs .1250/-

GL 85% of the value 13.5 1% of the LA +S.T. 12 mts

of gold
ornaments

Source-Primary data

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• Other services-
 Cards-.

Debit card-Based on the deposit products the bank issues Debit card of
gold or platinum and provides with a withdrawal limit of up to Rs
100,000/- per day at ATMs and for purchase transactions respectively.

Credit card- The bank issues gold and platinum credit cards to
individuals with a minimum annual income of 3 lacs and 6 lacs
respectively with cash back benefits in super markets, theatres etc. and
free insurance coverage.

Gift Card-Gift Card can be used at over 4,50,000 VISA
enabled merchant outlets across the country. Card can be availed in
denomination-Rs. 500 and Rs. 50,000, in multiples of Rs. 100. The
balance on the card can be checked at any Dhanlaxmi Bank ATM. The
unutilised balance on the card can be redeemed within six months of the
expiry of the card at any Dhanlaxmi Bank branch.
 Depository Services
As a depository participant of National Securities Depository Services
Ltd, Dhanlaxmi Bank provides all depository-related services.
 Safe Deposit Lockers.
 Online services-

Bill pay-. With this facility customer can make payments for utility bills
like telephone, mobile, electricity, insurance premium, etc. online
instantly without having to register for it, after login to Internet Banking.

The payments relating to Electricity, Telephone and Gas Bills, Credit

Card Bills, Insurance / Taxes payments, Mobile Phone
Bills,Subscriptions / Donations, Online Shopping, Air / Rail / Movie
ticket booking, Loan Repayments, Internet Service Providers bills can
be made through Dhanlaxmi Bank Payment Gateway.

Insurance-Through the partnership with MetLife India, one of the
leading Insurance companies, DLB addresses customers life
insurance needs.

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General insurance-Through the partnership with Oriental

Insurance Company DLB attends to customers health, home, car,
travel to personal accident cover insurance needs.

5.5.2.MARKETING STRATEGIES OF DLB

5.5.2.1. Branch Expansion
The Bank’s customer outlets stood at 676, as on 31.03.2014,comprising
280branches, 396 ATMs and 12 processing centres.

5.5.2.2. Public Relations and Publicity

To ensure that the Bank continues its publicity and marketing efforts,
despite the financial limitations, it concentrated on localized and regional
initiatives in reaching out to its customers. As a part of its community
involvement, Bank participated in and encouraged local events and functions
thereby growing with the society.

5.5.2.3. Corporate Website

Bank maintains its corporate website (www.dhanbank.com)with a
dedicated internal team. The website is updated on a daily basis with product
updates, information to customers, latest news while also ensuring availability
of information as required by regulators in an easy fashion. The corporate
website has approximately 1.8 lakh page views/hits per month.

5.5.2.4 Information Technology-Implementation of Full Fledged Retail

Internet Banking
The bank has launched a new Internet Banking platform for Retail
transactions. This new platform is feature rich coupled with enhanced security
features with 2 factor authentication and image verification. New Retail
Internet Banking facility was launched with improved features to serve the
customers in a better way.Forex and Loans modules were enabled in May
2012 to Corporate Internet Banking for the corporate customers. A new on-line
Business Correspondent model using the latest “tablet” technology has been
launched during 2013-14.

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Account Balance Information through a ‘Missed call’.

Bank has introduced a novel method where by the customer will get the
account balances through a missed call.The customer will get an SMS alert
informing his account balance when he / she gives a missed call to the given
number from his / her registered mobile number.

Reintroduction of E-Statement
Monthly E-Statements in PDF format are sent to all customers in the first
week of every month. The statement includes the details of all CASA
accounts, TD Accounts and Loan Accounts linked to the customer id of the
customer.

Mobile banking-
DLB provides Mobile Banking through which customer can conduct financial
and non financial transactions securely. During 2013-14 Phase II of Mobile
Banking facility has been launched with enhanced features, Mobile and DTH
Recharge facility, Mobile Shopping and Bill Payments system, ATM Card
Hotlisting facility, Reissuance request facility for debit card, facility to request
debit card pin and facility to view details and payment data of Dhanlaxmi
Bank Credit cards with enhanced daily and monthly transaction limits for
financial transactions.

5.5.2.5 Business Development And Planning

The department is responsible for initiatives towards overall business
development. The department works as an effective link between the business
units, Regional Heads, Zonal Heads and the MD & CEO. Amongst other
things, the department handles Business Development, New Product & Service
Development, Government Business, Liability and Third Party Products
Portfolio, Infrastructure and Administration Support, Centralised Operations,
Currency Chests, Public Relations and Publicity, Implementation of
RBI/BCSBI guidelines/Damodaran Committee recommendations on customer
service and management of complaints including from Banking Ombudsman.

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The Central Processing Centre of the Bank also functions under the ambit of
this department.

5.5.2.6 Customer Service

The Bank attaches top priority to the quality of service rendered across its
branches/offices. It has taken a series of measures through deployment of
techonology for significantly enhancing service quality. A well defined and
full-fledged Customer Grievance Redressal Mechanism is put in place in the
Bank. Customer Service Committees comprising of Bank personnel as well as
our constituents have been formed at the apex level and at branches for
monitoring service quality and bringing about improvements in this area on an
ongoing basis. The Bank has a 24 x 7 Phone Banking Call Centre at Thrissur
as an outsourced model to cater to customer needs across the country.The
empowerment of branches for handling all transactions and services for the
customers has helped the Bank in better customer service and reduction in
number of complaints.

5.5.3 Human Resources

In the year 2012-13, the Bank moved from a vertical based business
model to a branch centric business model, as part of a conscious, strategic
decision to accelerate growth, improve profitability and enhance service
quality. As part of the reorganization, the Bank has identified excess staff in
the system and initiated steps to rationalize the employee strength. The Bank
focus on attracting, motivating and retaining qualified and skilled manpower.
Concurrent with these objectives, steps are taken to improve manpower
efficiency. Given the market challenges, there has been considerable focus on
optimizing the existing resources - through internal job postings, transfers and
skill development initiatives. Training and development has assumed
significant importance. The Bank’s Staff Training College identifies the gaps
in resource capability of the personnel and train them for qualitative
improvement. During the year 2013-14,training was given to 1259 employees
which accounted for 52 % the workforce as on 31.03.2014.

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5.6 SOUTH INDIAN BANK(SIB)

One of the earliest banks in South India, "South Indian Bank" came into
being during the Swadeshi movement. It is the first bank in Kerala to develop
an in-house, a fully integrated branch automation software in addition to the
in-house partial automation solution operational since 1992.
5.6.1 Product Strategies of SIB
The bank offers wide range of personal banking products and services
.The range of products include savings Bank accounts, current deposits,time
deposits and recurring deposits with suitable variations for customised
products targeting different groups like students, salaried employees, women
and senior citizens. Constant innovations are being done on the existing
product lines to make it more attractive. The Bank offers a wide range of SB &
CD products with Any Branch Banking facility to suit the needs of various
customer segments.

Product range of SIB-To suit the needs of different segments of customers

SIB offers a host of deposit and loan accounts.The products such as CD Smart
and SIB-Mahila, Youth Plus, etc.cater to specific segments of the customer
base.Table 5.8,5.9,5.10 show the deposit and loan products of SIB.
TABLE 5.8 Range of SB products
Scheme Eligibility AQB
Regular Savings INDVS 1,000
Privilege Savings INDVS single or joint 5000
Group Salary Savings Not stipulated nil
Account
Junior Savings (12-23 STUDS Rs 150/-
yrs.)
Basic Savings Bank INDVS in their own name or in nil
Deposit Account joint names of family members

Youth Plus Savings INDVS in the age 20 to 35 years 1,000

Mahila Plus Account WMN 5,000+RD1,000
SB invest- INVS having a Demat a/c with nil
SIB
Source-primary data

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TABLE-5.9

RANGE OF FD PRODUCTS
Scheme Nature MinAmt Max Amt Period
Kalpakanidhi FD Not stipulated Not stipulated 6 months-
10yrs
SIB Flexi FD+ CD Rs 50,000/-& 1Crore Not stipulated
Smart Smart units of 10,000
Deposit account
SIB Flexi FD+SB In units of Not stipulated Not stipulated
Deposit Rs.1,000
SIB Tax FD 100 1lakh 5YRS
Gain 2006
Fast Cash FD Not stipulated Not stipulated 30-90 days
Deposit
Fixed FD In units of No limit 15 days-10
Deposits Rs.1,000 yrs
RD RD 100 Not stipulated 1-10 yrs
SIB CARE Annuity 25,000 1 crore 2-10 yrs
Source-primary data

TABLE-5.10
RANGE OF LOAN PRODUCTS
Amt REP- ROI procg charge
PRD
SIB .PL 3lacs 48 15 0.5% of loan amt.
months
Vehicle - 85% of cost 5yrs 10.90- .5% of theLA or
Mobiloan 2.25 Rs.5000/
Personal whichever is less
SIB HL 60 times of 30 yrs 10.50 Max Rs.10000/-
NMI Till 75
yrs
ofage
Gold Rs.0.25 lac - 12 mts 14.50 nil
Power(OD) 1lac
Gold Rush Rs.10,000/--to 12 mts 14 nil
5lacs
SIB- Max.Rs.10.00 60 mts BR+1.10 nil
Excellence lakhs.
Flexi Rs.2.50 - 6-60 BR. 0.50 of theLA
loan(HNI) Rs.30lacs mts +3.80
SIB fortune Rs.1- Rs.5 lacs. 6 -60 BR+4.80 0.50 of the LA
mts
Source-primary data

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Other services-

Cards-The Bank is offering both Visa and Maestro debit cards to
its customers. Using SIB debit cards Bank’s customers can
withdraw cash through ATMs of any bank in India and also across
the globe wherever Visa/Master logo is displayed. Visa cards have
three variants namely Classic, Gold and Platinum which offers a
wide variety of features such as enhanced cash withdrawal limits,
online transaction limits, POS transaction limits etc. Bank has
enabled its Visa cards and Maestro cards for online transactions.

Mutual Funds-The Bank is already having tie up with 13 leading
Mutual Fund companies to offer variety of mutual fund products to
the Bank’s customers.

Bonds-During the FY 2012-13, the Bank has been enrolled as a
Channel Partner for the distribution of the bonds issued by
different companies, through Bank’s tie up with IFIN- a subsidiary
of IFCI (Industrial Financial Corporation of India) Financial
services Limited

New Pension System-The Bank was appointed as a Point of
Presence to provide services to subscribers of New Pension System
introduced by Pension Fund Regulatory and Development
Authority (PFRDA).

Pan Application Servicing-The Bank had made a direct
arrangement with M/s UTI Technology Services Ltd. (UTITSL)
for servicing the PAN card applications.

Cash Management Services-The Bank is offering Cash
Management Services to the customers in association with Tata
AIG, ING Vysya and ICICI Prudential Life Insurance Co. Ltd.
Under this arrangement, Bank’s customers as well as the walk-in
customers can remit life insurance premium through the branch
counters.

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5.6.2.MARKETING STRATEGIES
5.6.2.1. Branch Expansion Programme / Policy of the Bank-The Bank has
been successful in widening its coverage across the country with 750 branches
transforming it into a pan India institution. The branch network now covers 29
states/union territories and has a network of 800 ATMs.

5.6.2.2. Business Effectiveness Through Technology

Internet Banking (SIBerNet) – Internet banking service of the Bank
offers Self, Third Party and External Fund Transfer (RTGS/NEFT),
which enables Bank’s customers to do transaction on a round the clock
basis.To facilitate online transaction for Internet Banking
customers,Bank has arrangements with 7 leding online payment
aggregators like Billdesk, Tech Process, CC Avenues, Ties of Money
Ltd (TOML), IBIBO, Paymate and Atom Technology Ltd.To enable
online offering facility to SIBerNet customers, the Bank has
established arrangements with famous temples like Attukal Bhagavathy
Temple and Sri Padmanabha Swamy Temple,Trivandrum and Sri
Krishna Temple, Guruvayur. In order to cater to the needs of Bank’s
customers in an instantaneous way, the Bank introduced instant Pin
Mailers for SIBerNet, which enables the customer to receive User Id
and Password over the counter instantly when they are applying for
internet banking facility. In addition to these, the Bank is introducing
Direct and Indirect Tax Payment facility for its Retail and Corporate
Customers.

Mobile Banking
Customers of the Bank enjoy the benefit of mobile banking service
wherein, the transaction alerts are sent to the customers (including
the mobile nos. registered outside India) on a real time basis, using
SMS technology.

SIB E.Pay

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In association with BSNL, the Bank is facilitating the payments of

BSNL Landline bills of its customers through their accounts
maintained with the branches.

5.6.2.3 Business Promotion Initiatives

The Bank has undertaken many brand promotion initiatives in various
media like Newspaper, Television, and Radio, outdoor and online media. The
advertisements were concentrated in major metros like Bangalore, Delhi,
Mumbai, Kolkata, Chennai and Hyderabad and enhanced the visibility of the
Bank at these centres. The Bank was the Title Sponsor and official Bankers to
the prestigious Grand Kerala Shopping Festival Season -6.

The Bank marked its presence on social media on 16th November, 2012.
The Bank has its own official fan pages in Facebook, Twitter and YouTube.
Bank’s official Facebook page contains various information about the Bank
such as mission and history of the Bank. The page also gives an opportunity to
the customers to provide their valuable suggestions/feedbacks and also to
make clarifications regarding the products & services by making queries.
Bank’s page provides information about the interest rates of Deposits
(Domestic/NRI) and in identifying the nearest branch and ATM.

The NRI Division of the Bank aims at personalized and dedicated

services to NRI customers. In FY 2012-13, the NRI Division has successfully
implemented Welcome kits to NRE privilege accounts featuring instant
activation. Such accounts are now available at all branches of Hadi Express
Exchange and marketing officers at UAE. To increase the momentum of NRI
business growth and valued customer retention, NRI Division arranged NRI
meets in Switzerland and Germany and also in Kerala.

South Indian Bank unveiled the new corporate logo that demonstrates
the major transformation the bank has undergone since its inception.
Mammootty, the three-time Bharath award winning megastar, who is also the
global brand ambassador of the bank, unveiled the new corporate brand logo.
Currently SIB is the only bank in South India that has a brand ambassador.

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5.6.2.4 SIB Students’ Economic Forum (SIBSEF)

Students’ Economic Forum is a monthly publication from the SIB Staff
Training College and it provides an analysis of contemporary themes relating
to developments in Economy, Banking and Finance. The objective of this
venture is to kindle interest in economic affairs among the younger generation
and also to empower the student community. The hard copies of the
publication numbering 3,130 are being sent to all the branches/offices, reputed
schools / colleges / academic institutions, RBI offices, other Banks,
government organizations and corporate offices. It has wide acceptance among
students, bankers and academic community. The soft copy of this publication
is being sent to all the “Youth Plus” account holders by e-mail and it is made
available in the Bank’s website.
5.6.2.5. Financial Literacy Centre-
The Bank has initiated awareness programs through Financial Literacy
Centres (FLCs). The goal of FLCs is to impart financial literacy in the form of
simple messages like Why Save, Why Save early in your Life, Why Save with
banks, Why borrow from Banks, Why borrow as far as possible for income
generating activities, Why repay in time, Why insure yourself, Why Save, for
your retirement etc. and will mainly focus on the large rural population who
are unaware of planning their basic financial needs and the role of the banks in
addressing their financial requirements.
5.6.2.6. Toll Free Centred at HO-
Marketing Department was operational since August 7, 2008 with the toll free
telephone facility subscribed from Idea Cellular Ltd Further to this, the bank is
having one land-line connection mainly intended for international customers.

5.6.3. Human Resource-(Internal Marketing)

The major talent acquisition initiatives of the Bank include general
recruitments and campus recruitments of clerks &officers from
Colleges/Business Schools all over India. As on March 31, 2014, the Bank had
6,383 personnel on its rolls. The average age of employees of the Bank was 36
years as on March 31, 2014. Out of the total number of staff members, 51%
are below the age of 30 years.

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5.6.3.1 Staff Motivation-

Promotions: The Bank is offering excellent career progression
opportunities.

Staff Welfare Scheme (Sws) 2012was introduced in the FY 2012-
2013 offering job opportunities to the children of staff members in
officers/clerical/subordinate cadres.

Introduction of Staff Welfare Fund: Bank’s Board has also
introduced a Staff Welfare Fund to take care of the various welfare
related matters of the staff members.

Employee Stock Option Scheme (Esos) During the financial year
2008-09, the Bank instituted an Employee Stock Option Scheme to
enable its employees to be a partner in the future growth and
financial success of the Bank. The scheme has generated intended
motivation amongst the staff.

“SIBLINK”, Bank’s corporate magazine, has been functioning as
an internal PR tool educating and motivating the staff for better
performance. It is published every quarter.

“Sib Executive Brief”–A daily news update on Banking, Finance,
Economy, Industry, Market Rates etc. is being provided by SIB
Staff Training College. It is E-mailed on a daily basis to Board
members, to the executives and it is also made available at SIB
Insight for access to all the staff members.

E-Learning Tests- The Bank has completed 12 online tests
through E-learning Application during the year 2013-14. There
were various topics covered during these tests such as Banking
procedures, Bank’s Operations Manual etc. Prizes were awarded
for the toppers in these tests.

E-Circular-The Bank has since migrated to issuance of e-circulars
in place of manual circulars. All the circulars of the Bank are
uploaded using the ‘e-circular software’. In e-circular, Bank’s
policies, Guidelines and Forms are also uploaded so as to

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empowerthe branches with readily accessible pool of information/

guidelines.
5.7. CATHOLIC SYRIAN BANK (CSB)
With the Swadeshi Movement of early 20th century as its base, Catholic
Syrian Bank was incorporated on 26th November 1920, in the Thrissur district
of Kerala. The Bank has a strong rural base with around 80% of the branches
in rural and semi- urban areas.

5.7.1-Product strategies of CSB

• Product range of CSB-To suit the needs of different segments of
customers SIB offers a host of deposit and loan accounts.

Table 5.11, 5.12 show the range of deposit and loan products of
CSB.
TABLE-5.11 RANGE OF DEPOSITS
Min.Amt PRD
Fixed deposit 100 7days-10yrs
CSB tax saving 100-1lakh 5 yrs
Family welfare 100 onwards Upto 10yrs
Acharya 5000 Minimum6 mts
Cumulative Deposit Rs.5 onwards 10yrs
Source-primary data

TABLE-5.12: RANGE OF LOAN PRODUCTS

Max Amt ROI REP PRD
HL Upto 30lakhs 10.5% 20 yrs
Above 30 lakhs 11%
GL 75% of mkt value 14% 12 mts.
Kanakashree 75% 14% 1year
CSB...Ezee Gold Cash 75% 14% 6 mts.
PL 10times GMS 18.25 60mts
CL 80% invoice value 11% 60 mts
VIP CL 100% invoice 11% 60 mts
Source-primary data

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 Other services-
 Cards

ATM card

Gift card-‘Upahar’ relieves the customers from the task of
selecting an appropriate gift.
 Third party products-The Bank has Corporate Agency arrangements
with the New India Assurance Company for general insurance business,
Birla Sun Life Insurance Company for life insurance business and
Export Guarantee Corporation of India (ECGC) for Export Credit
Guarantee Insurance business. The Bank is also having tie-up
arrangements with TATA Asset Management, UTI Asset Management
and DBS Chola Asset Management for distribution of mutual funds.
5.7.2. Marketing Strategies
Bank is implementing an aggressive growth strategy byintroducing new
products that are best suited to the growing customer needs and continues its
marketing efforts towards mobilising low-cost deposits. The bank offers wide
range of personal banking products and services, deposits, advances, RTGS,
NEFT, International Money Transfer, NRI Services and insurance. During
2012-13,in order to take advantage of the different business behaviour and
attract the floating money available with the business community towards
improving Bank’s CASA portfolio, the bank has introduced an innovative
current account product “CSB Smart”. It can be started with zero balance and
no minimum balance is insisted for its continuance. Folio charges were fully
exempted. With a view to further strengthen the retail advance portfolio of the
Bank, the Bank has introduced a new Housing Loan Scheme. The scheme is
titled ‘CSB Nivas with attractive features like reduced rate of interest, long
repayment period etc. The Bank is also issuing a gift card – Upahaar, which
relieves the customers from the task of selecting an appropriate gift.

5.7.2.1 Branch Network

The bank has an impressive all-India presence, covering 17 States and 2
Union Territories. The bank has a network of 430 branches and 208 ATMS as
on 31/03/2014.

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5.7.2.2 Technology Adoption

All branches of the Bank are functioning under the platform of Core
Banking Solution. The Bank started deploying Biometric ATMs in rural areas,
which frees the customers to remember their ATM PIN. The Bank has tie ups
with VISA, NFS (National Financial Switch), DFS (Discover Financial
Services) to increase the accessibility of ATMs across the world.
The Bank has tied up with ”The National Payment Corporation of India
(NPCI)” for offering a new payment service called Interbank Mobile Payment
Service (IMPS). IMPS enable the customers to use their mobile instruments as
a channel to transfer funds. The Bank has a tie up with M/s. Weizmann Forex
Ltd. for providing Western Union Money Transfer Service (WUMTS).
WUMTS provides a safe and fast way of transferring money from anywhere in
the world to India. The bank also operates web enabled international money
transfer service namely Wall Street Instant Cash, International Money Transfer
and MoneyGram

Net banking-The bank is providing internet banking service to its
customers.To enhance the features of Internet Banking Services
facility, the Bank has entered into tie up arrangements for
providing various online services to customers, like payments of
utility bills, ticket bookings, online shopping, insurance premium
payments, online prepaid mobile recharge service and so on.

SMS Banking Facility-This service provides information about
transactions as and when it happens. It helps customers to keep a
watch on their account round the clock.

5.7.3 Human Resource-(Internal Marketing)

The bank has a total strength of 2882 of which 1523 officers,1,126
clerks, 168 sub-staff and 65 permanent part-time employees. The Bank has a
well-structured Human Resource Management Policy governing selection,
recruitment, training, promotion etc. of staff members. The Bank makes
extensive use of training resources of its Training College with a view to
provide specialised training newer areas of skills and provide wider exposure
to executives and officers.

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During the year 2012-13, 35 training programs were conducted at the

Bank’s Staff Training College, exposing 730 staff members at different levels
to various trainings and 94 staff had been sent for external training programs in
different functional, managerial and behavioral areas.

5.8. CANARA BANK (CAN bank)

The Canara Bank was founded as 'Canara Bank Hindu Permanent Fund'
by late Shri.AmmembalSubba Rao Pai, a great visionary and philanthropist, in
July 1906, at the small port of Mangalore, Karnataka. The bank was
nationalised in 1969. In June 2006, the bank completed a century of operation
in the Indian banking industry.
5.8.1. Product Range of Canara Bank
The range of products offered by Canara bank is wide to suit the different
segments of
customers.Table 5.13 ,5.14 and 5.15 show the range of deposits and loasn
products of Canara bank.
TABLE-5.13
RANGE OF SB PRODUCTS

Scheme Eligibility Min.balance

Canara Super Savings SAL persons Nil
Salary Scheme
Canara SB Power plus. INDVS 1,00,000
Canara Small savings Bank An INDVL in his/her name. nil
a/c.
Canara Jeevan Dhara SNR CITZ (Resident indians) nil
Savings Bank Account INDVS,FRMS ,TRTS 1,000
,ASSNSetc
SB Gold Scheme INDVS, JNTa/cs,MNRS,ILLTS, 50,000
HUF, NON CORP.
Canara champ Deposit CHLDN upto the age of 12 years 100
Scheme.
Canara basis Savings Bank INDVSin his/her name. JNT 100
Deposit Account a/cs,
a GDN on behalf of a MNR
Source- primary data

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TABLE-5.14
Range of Fixed Deposits
- Eligible persons Period AMT Loan
facility
Kamadhenu INDVS,PTNSP,HUF.CO 5-120 mts 1000-no lmt AVL
deposit
Canara tax INDVS,HUF 5yrs 100-1lac Not
saver AVL
RD INDVS,PTNSP,.CO. 6-120 mts 50p/m,Nolmt AVL
Ashraya INDVS above 60 yrs 15- 1000-no lmt AVL
deposit 120mts
Canara INDVS,PTNSP,.CO 1-10YRS 100-1lac AVL
dhanvarsha
Source-Primary data

TABLE-5.15
Range of loan products in CAN bank
HL REP.PRD AMT ROI Procg charges
HL 30yrs or 4yrs of GR.SAL Upto75lacs- .5% of LA
70yrs of 0.20% max-10,000
age >75lacs-
0.40%
HI(MP)L 60mts upto one 10.2% .5% of LAmax-
yrGR.SAL 10,000
CANHL 120 10mtsGR.SAL/ 10.2% 0.50%of LA
plus EMIs 25lacs max- 500/-
HLSNR 15 Yrs 50timesmtly .25% of LA
CITZ pension-Max- Max- 5000
75lacs
PRM 30yrs or Rs.1. Cr.Above 1 Upto75lacs- 0.10%of LA
HL(HNI) 70yrs of cr. 0.30% max 25000/-
age Ltd to 5 times of >75
AGI lacs10.5%
CAN(STE) 5 years Upto 15 lacs 10.2% .25%ofLA
or Max5000
CL 60mts 80% of invoice 10.70% .25% of LA
Max-5000
PL SAL- SAL-6MTS GS 10.70% .5% of LA
60mts /3LACS max-10,000
Non sal- Nonsal-50% AGI
36 mts for 3 yrs or 1lac
GL 12mts Upto 10,00,000 14% 1%of LA,
max-5,000/-
Source-primary data

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• Other services-
 Cards

ATM-cum-Debit Card-ransactions Through Bank ATMs And Other
Bank ATMs

Purchase Of Goods And Services at POS Merchant Establishments

Credit card-
1. VISA Credit Cards, Classic and Gold ( EMV )
2. Master Credit Cards- Standard and Gold ( EMV)
3.Corporate Credit Card ( EMV)
Cash withdrawal facility at all ATMs of Canara bank ATMs. No
interest on cash withdrawal if paid by the due date
 Insurance Business
Life Insurance- Bank has started a Joint Venture Insurance Company
“Canara HSBC Oriental Bank of Commerce Life Insurance Company
Limited” for selling the life insurance policies.

General Insurance- Bank has entered into a corporate agency Tie-up
with united india insurance co. for selling their general insurance
products across all canara bank branches.
 Mutual Funds-The bank has tie up with Canara Robeco and HDFC
AMC for cross selling of their mutual fund products through canara
bank branches. Investment can be made in CANARA ROBECO Mutual
Fund Products.
 Depository Services-Canara bank is a Depository Participant of NSDL.
 Retail sale of gold coins
 Safe deposit lockers

5.8.2 Marketing strategies of Canara bank

The Bank took a conscious decision to de-risk the balance sheet by
shedding a substantial portion of bulk business both on high cost,including
Certificate of Deposits as well as short term unsecured corporate loans and
accordingly more thrust was given to to retail business.In order to bring down
the cost of deposit,Bank launched nationwide campaigns to mobilize CASA
deposits.Pursuing a strategy of broad-basing deposit clientele,all the branches

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together added 42 lakh deposit accounts, taking the total number of deposit
accounts to 4.17 crore during 2012-13. The Bank continues to invest in
delivery channels, information technology, customer service, staff knowledge
and new products/ service process to strengthen its position in the market. The
Bank took several measures during the 2011-14 to expand retail credit. The
Bank introduced many new retail loan products, viz., Canara Home Loan Plus,
Canara Consumer Loan and Canara Loan against Property.

Customer literacy initiatives-The Bank has provided Canara Gramin

Vikas Vahini Vehicles in 35 Districts across the country, with an
objective of providing awareness about bank’s products and banking
facilities among the rural households.

Extended banking hours-The bank has extended the business hours by
one hour more for customer convenience. (at select computerised
branches).

7 day banking facility available at select branches- For the convenience
of customers the bank has introduced 7 day banking in selected
branches

5.8.2.1.Business effectiveness through technology

The Bank took several initiatives on the InfoTech front.The Bank now
offers several technology banking services, such as, Internet Banking, Mobile
Banking, Funds Transfer through NEFT and RTGS, SMS Alerts, IVRS
basedenquiry across all its branches.All the branches and offices of the Bank
are running on Core Banking Solution, offering anywhere banking facilities
from all its branches.

The Bank has made a few value additions under internet banking(CAN
SPEED) that include 24X7 fund transfer facility through IMPS, Electronic
Payment Interface for Aggregators,SMS/ E-mail alerts have been enabled on
rate of interest changes, inoperative CASA accounts, deposits due date
reminder, reminder alerts on the issuance of cheque books, alerts on loan
installment and arrears for customers. Internet based online loan applications

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and status tracking system was developed and released for 15 loan products
including consumer loans, education loans, kisan credit card, farm machinery
loan, diary loan, corporate loans, etc. Canara Public Grievances Redressal
System has been developed in-house and enabled for general public for
registering grievances online.
5.8.3 Human Resource Development (HRD) Activities
The HR policies of the Bank have been revisited to suit the changing
banking scenario. HR interventions like SPANDAN for bringing attitudinal
change among front line staff and Executive grooming through reputed
institutes and other significant HR tools like Quality Circles, Study Circles,
Staff Meetings and Brain Storming Sessions have been implemented for
effective team building and fostering collective excellence.

The Bank has an exhaustive training process covering 4 genres of

activities, viz., Internal Training, External Training, In company Training and
Foreign Training. The Bank has Staff Training College at Bangalore and 13
Regional Staff Training Colleges. Various corporate communications are
brought out to boost the morale of the employees and educate them in various
facets of banking. The Bank trained 31100 employees during the year 2012-
13, covering a wide range of functional areas including Credit Orientation,
Marketing for Counter Staff and Induction Programme for Clerks, Offi cers,
Rural Officers and Technical Field Officers. The Bank designed and
implemented 2 new training programmes, viz., Jagaran and Basic Credit
Appraisal and Monitoring. ‘Jagaran’ was a soft skills training programme
conceived to de-stress employees through the institutes of repute at external
venues on residential basis. During the year, 7584 Officers and Clerks were
trained under this programme. The Bank has envisioned a novel programme,
viz., Talent Bank to provide opportunities for generalist officers to assume the
role of specialists in 10 identified streams.

Establishing a proper Talent Management and Reward System will be

the Bank’s focus in the coming years. There will be concerted efforts to
identify potential leaders and groom them to take up higher responsibilities.

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Further, the Bank’s quest to enhance the competencies of the workforce

continued through focused and need based trainings at various institutes of
repute like IIMs, JNIBF, ISB, XLRI and NIBM. Customized programmes are
also organized to develop expertise in certain niche areas like Risk
Management, Treasury Operations and IT Specialized trainings to the Senior
Management Level/Top Management Level Executives are conducted based
on the requirement. The Bank has been able to add substantially to the skill
level of itsofficials through this training intervention and motivating them to
perform with renewed vigor and enthusiasm.
The Bank has formed a Sub-Committee of the Board of Directors on HR
to review and improvise the existing HR policies and make suggestions to
accelerate the employee engagement initiatives. The Bank has taken several
initiatives to remain customer focused through providing fast service, bringing
in diversified products/services, responding to customer’s queries and
redressal of customer complaints. The ‘Code of Commitment to Customers’
issued by BCSBI is made available in the Bank’s website. To assess the
quality of customer service rendered by the branches and to get feedback,
“Customer Satisfaction Survey Form” is made available in the Bank’s website.
Customer’s Fortnight was conducted from 15.11.2012 to 30.11.2012 inviting
suggestions from customers.
Toll free contact at Customer Service Section, Head Office,is provided
to facilitate the customers to represent their grievances. Toll free contact
facility at ATM switch room and Card Division are provided to the users to
represent the matters pertaining to ATM operations and Card business.

5.9. STATE BANK OF TRAVANCORE (SBT)

The State Bank of Travancore (SBT) was originally established as
Travancore Bank Ltd. in 1945 sponsored by the erstwhile princely state of
Travancore and is now an associate bank of SBI. It is a Premier bank in Kerala
State, with world -class technology through the implementation of 100% Core
Banking Solution (CBS). Its head office is at Poojapura, Trivandrum, Kerala
State. Overall, SBT has a network of over 1036 branches spread over 16
Indian states.

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5.9.1.PRODUCT RANGE OF SBT.

The products and services provided by the bank mainly categorised into
personal, Corporate, NRI, MSME, and Agricultural industries. Under the
personal banking business, the bank offers Deposits, Loans, Cards, DMAT
Services, Payment Services, Insurance, and Mutual Funds to individual
customers.

Deposits-The information and classification on products and services of SBT

is described in Table 5.16,5.17 and 5.18.
TABLE-5.16
RANGE OF SB PRODUCTS
Name Eligibility Mininmum Others
balance
Basic Savings Bank INDVS nil nil
Deposit
Savings Plus( INDVS 5000 Auto sweep to
SB+FD) FD
Prathibha Savings WMN 250 No max ceiling
Deposit
SBT Little Star CHLDNbelow NIL 2-20 lacs
Savings Deposit 18 years of age Initial deposit-250
Source-primary data
TABLE 5.17
TIME DEPOSITS
Scheme Eligibility Amount period ROI
Twinkle CHLDNbelow 500 3-10 yrs 9%
Deposit 18 yrs of age &above
Scheme(RD)
Fixed deposit INDVS 1000 7dys-120 mts 9%, SNRCITZ
&above 0.5%extra
Source-primary data

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TABLE-5.18
RANGE OF LOAN PRODUCTS
AMT REP PRD ROI Eligibility Procgcharges
HL 500 lacs 30yrs/upt Upto75lac RDNTwith .5% of LA
o s-10.25% IC Max10,000
70yrs of >75lacs- Rs.12,000/p/
age 10.50% m
SBT easy 10000- 12 mts 12%p/a CUSTwithK .2% of LA
GL 10lacs YC norms Max-1000
SBT LQD 10000- 36mts. 13% CUSTwith .23%of LA
GL(OD) 25lac KYC norms Max-1000
SBT Max Gain 5 crores Upto75 RDNT with .56%Upto2la
lacs- 3 cs/
10.75% yrsexperienc or
>75lacs- e 500,Above
11% 2lacs-10,000
SBT HSE 80% of 5Yrs INDVSwith
10.25% .56% of LA
SitePurchase cost or IC&age Min500
10lacs below 60
Home Cash 50000- Tenure of Term Existing .5% of LA
2 crores home loan-12% HLCUSTS max 10000
loan OD-
12.25%
Suvidha Loan min50,000 Max120 13.50% CUST of 1% of the LA
no maxlmt mts SBT max
Rs.50,000/-
CL 10lacs.pre 7 yrs 11% .3% of LA
m Max-3000
Above10la
cs
SBT PLan Max 4 60mts 14% GOVT.and 1%of LA
LACS PSU
employees
VL Upto50,00 72mts 17% salary a/c 150
(2wheeler) 0 with SBT
Newprasanthi 12 mts 36 mts 13.5% pension a/c .5% of LA
Loan PNSN with SBT min30/-
Max-3
lacs
New(Elite)Prasa 18 mts 60mts 13.75% Monthly 0.50% ofLA.
nthi 7.5lacs pension min of
>20,000 Rs.30/-
Mitra Varsha 5-20 lacs payable 14.75% INDVS Max 560
on p.a. having
demand securities
Source- primary data

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• Other services-
 ATM services
 Demat services
 Insurance

5.9.2. Marketing strategies of SBT.

5.9.2.1 Branch Network
As at the end of 3 I st March 20I4 the total number of branches has
touched 1117, by setting its foot prints in IS states and 3 Union Territories.
The number of branches in Kerala increased to 758 as at the end of 31st
March, 2013. The Bank has a network of 965 ATMs, including 2 Bunch Note
Acceptors (BNAs). The network of 792 ATMs in Kerala is the largest in the
State. All ATMs are part of the State Bank Group ATMs, having around
30,500 ATMs. The Bank offers a convenient and efficient Internet Banking
(INB) facility through 256 bit EVSSL (Extended Validation Secured Socket
Layer) encryption. This provides more security to Internet Banking customers
against phishing/hacking threats.

5.9.2.2 Marketing Initiatives and Development of New Products

The Marketing Department of the Bank continues to play its role in
facilitating customer acquisition, retention and broadening of the Bank's
customer base by conducting segment centric marketing drives. The Bank
continued to be active in extending finance to Personal Segment, mainly by
way of Loans, Education Loans and Gold Loans.

Campaigns
In order to commemorate the 67th Anniversary of Bank's foundation
day, a 670 day deposit product with interest at 9.50% p.a. was run from
20th August 2012 to 15th September 2012. A campaign by the name of
"Poojato Pongal" was conducted from 23.10.2012 to 15.01.2013 for
extending Housing Loans, Car Loans and Gold Loans at attractive
rates/concessions. In order to activate the inoperative accounts a campaign
was conducted during which 1.04 lakh inoperative accounts were either

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reactivated or closed. SBT Tax Saver Scheme is aimed to facilitate tax payers
to secure exemption under Sec.80 of the IT Act. A special campaign was
conducted from 0I/02/2013 to 3I/03/2013 to encourage the Tax Payers to
invest their savings with the Bank.

NRI Services
The Bank continues to maintain the number one position in NRE
deposits in the Kerala State.

Three more Specialized NRI Branch was opened during the year2012-13
at Malappuram, Thrissur and Kottakkal taking the total of such Branches to
eight. The NRI premium Branch opened at Trivandrum in 2011-12, recorded
tremendous growth. During2012-13, by the addition of three more currencies,
the total number of currencies in which the FCNR (B) deposits can be
accepted is increased to nine.
The Representative Office, at Dubai, the nine Relationship Managers
posted in various Middle East countries and the Managers deputed to the two
Exchange Houses under Bank's management in UAE as well as in Oman, have
contributed to a great extent in canvassing the business at the point of origin
and directing them to the Bank. Also Bank is planning to increase the strength
of Relationship Managers in the Middle East countries for tapping the
potential available in those countries to the full extent. Some of the existing
initiatives like issuing the welcome kits for the new accounts opened overseas
on real time basis are received well among the expatriates.
The visit of marketing teams headed by the Managing Director and the
Chief General Manager to various GCC countries created positive impact
among the expatriates in these countries. Similarly, the one-to-one interactions
made with some of the Ultra High Net worth Individuals by the Top
Executives have resulted in getting bulk business of these Individuals to the
Bank.
Tie- up arrangements have been entered into with 37 Exchange
Companies and one Bank situated in various Middle East countries. The
remittance received through these Exchange Houses has grown by 23% in the

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year 20 I 2-I 3. About 18% of the amounts received through remittances are
retained with the Bank as deposits. The proposals for tie-up arrangements with
more Exchange Houses are under active consideration and are in different
stages of finalisation.
5.9.2.3. Information Technology - Technology Upgradation & IT
Initiatives
The Core Banking System has provided the Bank with state-of-the- art
software that has greatly enhanced the efficiency of customer services, speeded
up data processing capabilities, strengthened MIS, enabled efficient Asset
Liability Management, reduced transaction cost and offered alternate channels
to customers for transactions. The Core system is a product-based system
whereby new schemes of the bank can be introduced easily with global
parameter setting at CDC level. The capacity of the servers and other
equipments, and other performance parameters are periodically reviewed and
upgradation/addition of new equipment is arranged as and when felt necessary.

Following the April 20 I 0 Monitory Policy, RBI has constituted a

working group on Information security, Electronic Banking, Technology Risk
Management and Cyber Frauds, and made recommendations inthe following
nine areas.
 Information Technology Governance
 Information Security
 IT Operations
 IT Services Outsourcing
 ISAudit
 Cyber Frauds
 Business Continuity Planning
 Customer Education
 Legal Issues

Mobile Banking Service (MBS)

Mobile banking provides Bank's customers with another safe, secure,
fast and convenient channel for banking transactions. The services provided

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 MARKETING STRATEGIESOF SELECTED BANKS

includes enquiry services, funds transfer, demat account services, bills

payment, mobile top up, DTH recharge, m- commerce etc. A slew of value-
added applications were developed for customer's convenience
5.9.2.4.Business Process Re-engineering (BPR) Initiatives
With the objective of improving performance and enhancing customer
service to global standards, the Bank has embarked on implementation of
various BPR initiatives by leveraging on its core competencies, state of the art
technology and redesigned operating architecture.

Retail Assets & Small and Medium Enterprises City Credit Centres
(RASMECCCs) for appraisal, sanction and disbursement of loans in Retail,
Small & Medium Enterprises segments have been set up at 9 major centres.
This has enabled the Bank to reduce the response time in these centres,
thereby, improving the level of customer satisfaction. It has also enabled
standardization of internal processes leading to improved quality of assets.
Multi Product Sales Teams have been established at 7 centres attached to
RASMECCC to target specific markets, for canvassing. 3 Bank's Rural
Central Processing Centres (RCPC), are set up at Palakkad and Ponkunnam for
processing and sanction of Rural credit. Pension processing has been
centralized at the Centralised Pension Processing Centre (CPPC) set up at
Thiruvananthapuram. This Centre covers all pension accounts of all the Kerala
branches. The Centre ensures accuracy in pension calculations, timely
disbursement of pension and quick settlement of transactions.

Drop Boxes have been provided at the branches for hassle free and safe
handling of instruments deposited. Grahak Mitras have been positioned at
select branches to proactively guide the customers in conducting transactions.
Relationship Managers have been posted at select branches to extend
personalized services to the customers.
Public Relations and Publicity
The Public Relations Department shoulders the responsibility of
disseminating various information, projecting Banks image among public and
government departments. During the year under review, the department

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maintained close rapport with the Government departments, media,

commercial and social organizations and the general public.

Extensive publicity was given through News papers, Hoardings,

sponsored programmes, Visual and Electronic Media, to popularize bank's
products. The marketing efforts at the Branches, supported by an intensive
advertisement campaign all through the year at corporate level yielded
impressive results. During the year the Bank was one of the main sponsors of
Tourism Week Celebrations of Government of Kerala, Nehru Trophy Boat
Race, Mumbai.

The prestigious 'SBT Prathiba Samman' award was instituted in 2012to

honour three eminent Keralites who have rendered outstanding
contribution for the welfare of the society, regionally, nationally, and
internationally. The bank has added many new hoardings at vantage points in
Ernakulam to increase the exposure of brand SBT in the commercial capital of
Kerala. It had sponsored the installation of a Digital Signage Board at Vyttila
Mobility Hub, Emakulam, which displays banks advertisements 20 times per
day. Apart from advertisement on Hoardings, Bank has advertised through
direction boards at Sabarimala Route, Rota signBoards at Kozhikode, Kannur,
Trichur, Palakkad Railway stations and advertisement at Thiruvananthapuram
and Kozhikode Airport. The display at Thiruvananthapuram railway station
has become a landmark in Thiruvananthapuram city.
The Bank as a responsible corporate citizen sponsors and maintains the
Poojappura Traffic Island Park, which is widely used by the residents ofthe
city as a resting place.
SBT won the second prize under PSU for the float presented in
connection with the Onam celebration conducted by Department of Tourism,
Government of Kerala.
The Bank's Calendar for 20 I 3 with the theme 'The taste of Kerala, the
toast of the world' offers the essence and flavour of Kerala Cuisine, were
widely acclaimed by the public and the Media. Bank's internal house magazine
"Mythri" still retains its eminence among other such publications.

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The Bank opened pilgrim service centers at Pampa and Sannidhanam to

cater to specific banking requirements of the pilgrims to Sabarimala, which
generated tremendous publicity and goodwill for the Bank. They have also
sponsored the Sabarimala Police web portal of Virtual Queue' which was
utilized by 18 lakh pilgrims this year.

The major marketing initiatives of SBT during the past two years .
 The Marketing department's follow up efforts/liaison with the various
State Government departmental functionaries, ensured that the salary of
the employees of most of the State Government Departments is now
disbursed through the branches of the bank. Corporate Salary Package,
with attractive features, has been rolled out to cater to the customers'
needs.
 The Bank maintains good liaison with the State Government
administrative machinery and is the the preferred Bank for almost all
State Government Departments The Bank continues to be the main
bankers to all the Universities in the State and has branches in their
campuses.
 In the face of stiff competition the Bank succeeded in mobilising the
salary accounts of over 1700 Gazetted/Non-gazetted officers ofthe State
Secretariat
 To build up maximum growth in business by exploiting the potential
available and to maintain competitive spirit among the operative staff,
the following campaigns were conducted.
(i) Salary Savings Campaign (ii) Mahostav (iii) 500 days deposit (iv) Tax
Saver
 A major achievement of the year was leaving the Bank's footprints in
the corridors of the State secretariat. This was achieved by the
inauguration of the first ATM within the Secretariat premises by the
Chief Minister of Kerala.

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 Bank has introduced Doorstep Banking for Kerala Medical Services

Corporation for Karunya Community Pharmacy (KCP) outlets at
Medical College, Kallara, Alleppey, Trichur
 LCD lVs have been installed in Emakulam and Kottayam Zone branches
to display Bank's products and services. This facility is now being
extended to the remaining branches.
 A scheme for financing Installation of Solar Panels for in-house power
generation in the households of Kerala through atie-up with KSEB is
being initiated.
 Application Supported by Blocked Amount (ASBA) scheme has been
extended to all branches. This provides an opportunity to the investors to
apply for an IPO/FPO through any of the bank's branches.
 Salary and Pension disbursement package for KSRTC employees is in an
advanced stage of implementation.
 Discussions have been initiated with Revenue department for the Bank
to provide an e- platform for collection of government receipts and
effecting government payments.
 The State Government Treasury Integration is now in an advanced stage
of completion.
5.9.2.5. Cross Selling
The Bank has been constantly endeavoring to meet the requirements
of its customers by making available Life, Non-life insurance products as well
as other non-banking investment products like Mutual Funds and also Credit
Cards to its customers. The Bank's Cross Selling products include life
insurance products of SBI Life Insurance Company, SBI General Insurance
Company's Non-Life (General Insurance) products, SBIMF's Mutual fund
products and Credit cards from SBI Cards which are being made available to
the customers through the branch network. With auto debit facility in place,
SIP mode of investment in Mutual Funds is becoming popular amongst the
Bank's customers. The Bank also has tie up arrangements with UTI Mutual
Fund, Sundaram Mutual Fund, Franklin Templeton and Tata Mutual fund
houses whose products are available to the customers through the branch
network.

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SBI Life Insurance with a share of nearly 68% continues to be the
major contributor to Cross Selling Income followed by General Insurance,
Mutual Fund and SBI Cards at around 21.00%, 10% and 1% respectively.
The Bank had a tie-up with United India Insurance Company
Limited for marketing its Non-life products. The tie-up with UIICO for
General Insurance products has been discontinued with effect from
10.07.2012 and a new tie-up with SBI General is in place. Snehasuraksha,
the Personal Accidental Death cover for4.00 lakh for a yearly premium of
100 has gained wide acceptance.
Among the Mutual fund products, Systemic Investment Plans [SIPs],
Fixed Maturity Plans [FMPs] debt and equity funds of SBI MF launched
from time to time are also marketed through the branches. SBI Mutual
Fund's Gold Fund too is gaining acceptance amongst the investing public.

SBI credit cards are also being sold to the Bank's customers through its
branch network. Platinum Credit cards for high value customers, Secure
Cards, SBI Gift Cards and Vishwa Yatra Cards for overseas travellers are
some of SBI Cards products being marketed by the Bank.
5.9.2.6. Government business
The Bank maintains its status as the Principal Banker to Government of
Kerala. The Bank has been authorized by Reserve Bank of India to handle
State Government Business at 121 branches in the State of Kerala and 2
branches in Tamil Nadu. 370 Post Offices are linked with the Bank's branches
with a total turnover of 5,251 crores. More Post Offices are coming forward to
open their accounts with the Bank as per the Government Policy for linking of
Post Offices with the banks. Bank is undertaking Railway transactions in its 57
branches.
194 branches of the Bank are authorized by CBDT for collection of
direct taxes by physical challans (I 34 branches in Kerala and 60 branches
outside Kerala) and 148 branches are authorized by CBEC in Kerala for
indirect taxes in physical mode.

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5.5.9.2.7. Electronic Payment Systems

Electronic Payments of the Bank are done by the Payment and
Settlement Group which functions from Belapur, Navi Mumbai in the same
premises from which the PSGs of other Associate Banks are also functioning.
All the branches of the Bank are enabled for RTGS/GRPT/NEFT remittances.

5.9.2.7.Customer Service
Customer service in the Bank is accorded top priority and every
endeavor is made to improve the quality of service to the customers and
redress their grievances.

A well-defined and full-fledged Customer Grievances Redressal

Mechanism is put in place in the Bank. Reports on the number of complaints
received disposed/pending in the Bank as a whole are submitted to the Bank's
Board and Apex level Customer Service Committee at Head Office. The
Standing Committee on Customer Service, constituted pursuant to the
Tarapore Committee recommendations, also reviews the quality of customer
service extended in the Bank at regular intervals.

An official of the rank of Deputy General Manager is placed as head of

the Customer Service Department to give greater focus on complaints
received from customers and speedy redressal of complaints. The Department
acts as a coordinator between the Branch and the complainant and ensures
quick disposal of complaints.

As a proactive measure, apart from acknowledging each complaint

immediately on receipt, senior officials at Customer Service Department
endeavour to contact the complainant personally wherever contact numbers are
available. Many of the complaints get resolved on the same day itself. The
average time taken for disposal of complaints at Head Office /Zonally Office
level has been reduced substantially. This has created a very positive effect on
the customers and is widely appreciated by them.

Bank has provided a facility (SI'1S SBT CARE)to the customers
whereby they can send a message by SMS, using their mobile, from

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 MARKETING STRATEGIESOF SELECTED BANKS

any place to 9847198471 and /or 56363. The customer is contacted

by the officials of the Bank and the complaints are taken up for
redressal on priority.

Bank has also established a call centre with toll free number:
1800 425 5566 which enables the customers and general public to
seek clarification on Bank's products, service etc. Adequate
publicity through print and visual media is ensured throughout the
year.

5.9.2.9 Financial Literacy Centres (FLCs)

In Bank's Lead Districts, we have started FLCs along with RSET is for
providing financial literacy & credit counselling. Their major action points
include popularization of financial literacy activities, information about
product and credit availabilities and arranging seminars for counselling
students aspiring to pursue higher education.

Electronic Submission of Bank Realisation Certificates-

eBRC•Government of India had launched direct benefrt transfer (DBT) from
01.01.2013. For enabling Aadhar based payments, Aadhar Payment Bridge
System (APBS) was introduced by NPCI. The bank is one of the first banks to
become the member in the Aadhar bridge.
Sanction and disbursement of loans in Retail, Small & Medium
Enterprises segments have been set up at 9 major centres. This has enabled the
Bank to reduce the response time in these centres, thereby, improving the
level of customer satisfaction. It has also enabled standardization of internal
processes leading to improved quality of assets. Multi Product Sales Teams
have been established at 7 centres attached to RASMECCC to target specific
markets, for canvassing.

Information Systems Security

With technology becoming all pervasive in banking operations, the
Information Systems Security Cell plays a pivotal role in spreading awareness

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on various security measures among staff through various channels including

e-mails, circulars, pamphlets etc as also Bank's training system.
Malayala-Sammelanam
The SBT Malayala-Sammelanam was conducted under the auspices of
the Bank and Malayalam Sahitya Awards, for the best works in Malayalam
Poetry, Short Story, Human Interest Story, Children's Literature and Literary
Criticism were distributed in a glittering function at Thiruvananthapuram. Dr.
George Onakkur, noted Malayalam writer was honoured with SBT "Suvarna
Mudra" Puraskaram.

5.9.3.Training
Training programmes are conducted at Bank's Learning Centres at
Thiruvananthapuram and Ernakulam with the objective of updating the
knowledge, improving skills and reorienting the attitude of theOfficers and
employees on an ongoing basis with particular reference to areas of corporate
goals/concern areas.

During the year 2013-14 under review 236 training programmes were
conducted imparting training to 3,047 officers, I ,553 non- subordinate staff
and 203 subordinate staff.
In addition to in-house training programmes, 872 officers were deputed
to Apex Training Institutions of the State Bank of India like State Bank Staff
College Hyderabad, State Bank Academy Gurgaon, State Bank Institute of
Rural Development Hyderabad, State Bank Institute of Information and
Communication Management Hyderabad, RBI Institutions like College of
Agricultural Banking, Pune, National Institute of Bank Management Pune,
Institute For Development and Research in Banking Technology (IDRBT)
Hyderabad, Centre for Advanced Financial Research and Learning (CAFRAL)
etc. Some Officers were also deputed for training at BIRD Lucknow, IIBF
Mumbai, IMI New Delhi etc.•

Overseas Training
During the last financial year 8 Senior Executives of the Bank were sent
for attending various conferences and Training Programmes held at Leading

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Business Schools like Stanford Business School USA, Kellogg School of

Management USA, SDA Bocconi College of Management, Milan, European
School of Management at Beriln, ESSEC Business school, Paris, Ghent
University, Belgium etc.

Orientation Programme for Newly Recruited Employees

Orientation training was imparted to 396 newly recruited Probationary
Officers. Orientation training was also imparted to 264 officers promoted from
the clerical cadre under Group A, B & D intermediate Programme was
conducted for 360 Probationary officers.

SBT Leadership Meet

Bank has conducted a workshop for all top executives of the Bank to
discuss and find solutions to the key challenges faced by the Bank and also to
build a strong business leadership under the guidance of the Managing
Director and the Chief General Managers. In the workshop eminent faculty
from top business schools of the country has participated and guided the
participants in the preparation of their plans.

Assistant General Managers' Meet

A similar workshop was conducted for all Asst General Manager level
Officers of the Bank at three different locations at Chennai, Ernakulam and
Thiruvananthapuram where the participants are encouraged to formulate action
plans for development of business ofthe Bank as well as to find solutions for
the challenges faced bythe bank, under the guidance of the Managing Director
and other top management functionaries.

Training Programmes on Customer Service
Customer service is of paramount importance in banking business. Bank
has conducted a special training programme for the frontline staff on customer
service and soft skills engaging the services of a specialised customer service
training institute. 634 employees and Officers attended the training.

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5.9.4. Reward & Recognition

Bank has formulated a scheme to recognize and motivate high achievers
among the branches by awarding the honour of MD's Club, CGM's Club and
GM's Club membership to top performing branches.
5.10.ICICI
ICICI Bank Limited is the second largest financial service company
headquartered at Mumbai, India. It ranks second in term of sales and total
assets. It offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and
through its specialised subsidiaries.

5.10.1 Product range of ICICI

Deposits-Table 5.19 and 5.20 show the range of deposit and loan products of
ICICI.

Table 5.19
Range of SB prodcts
Savings Account Target group Minimum bal
Titanium Privilege INDVS above 18 yrs 125000
Gold INDVS above 18 yrs 50000
Silver INDVS above 18 yrs 25000
Regular INDVS above 18 yrs 5000-rural/
10000-urban
Freedom saving INDVS above 18 yrs 10000
AdvantageWMNSB(zeromin WMNabove 18 yrs 10,000
bal.allowed for RD of
Rs2000p/m)
Young Stars Account Iday-18 yrs 2500
SNRCITZ Savings Account CUSTabove 60 yrs of 5000
age.
Source-Primary data

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Table 5.20
Range of loan products
Scheme Amount REP PRD ROI Processing charge
HL According to mtly 30yrs 10.10%- 0.50% - 1.00% of the loan
income 10.25% amount or Rs. 1500/
CL 100% of 7Yrs 12.75-15% (2500 to 5000)+350
showroom price
PL 15000-15 lacs 12-60mts 13% 2.5%of LA
GL 10,000-15 lacs 6mts–1Yr 15% 3500
Source-Primary data

Other services-

CARDS
 ICICI card service: ICICI Bank has joined hands with several banks,
to give rise to a new kind of card power- unique & unmatched benefits &
international utility at the most competitive rates with attractive benefits
attached to each one of them.These benefits range from life time free
cards, Insurance benefits, global emergency assistance service, discounts,
utility payments, travel discounts and much more.

 CREDIT CARDS-ICICI Bank Credit Cards gives the facility of cash,

convenience and a range of benefits, anywhere in the world. ICICI Bank
offers a selection of cards to perfectly complement customers distinct
lifestyle needs-The Gemstone Collection ,ICICI Bank Diamant Credit
Card, Cards, ICICI Bank Rubyx Credit Cards, ICICI Bank Coral Credit
Card, ICICI are some of them.

 DEBIT CARDS-The ICICI Bank Debit Card allows customers to access

their bank account around the clock, around the world. The ICICI Bank
Debit Card can be used for shopping at more than 100,000 merchants in
India and 13 million merchants worldwide. ICICI offers variety of debit
cards to suit the customer needs. Some popular cards of ICICI are
Gemstone Card, Premium Cards, Expressions Debit Cards,

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Expressions Wave Debit Card, Personal Cards, Business Cards,

Unifare Debit Card.

 TRAVEL CARDS -ICICI Bank Travel Card is a pre-paid foreign

currency card that makes the foreign trip totally hassle-free and
convenient. Traveling with US Dollar, Euro, Pound Sterling or Swiss
FrancsOffers the Pin based security. It has the convenience of usage of
Credit or Debit card. Travel Card can be used in several ways-

Payment at Merchant outlets

Online payments

Cash withdrawals at ATMs

7 Days Banking: ICICI offers 7 Days banking at select branches spread
over the country. Customers can do their banking on all the 7 days of the
week (except for public holidays), over extended working hours. For
consumer convenience ICICI is one of very few banks which operates
from morning eight to evening eight i.e. twelve hours banking.

Tele-banking: Through this facility customer can access their account.
The bank offers a wide range of services such as account information,
Balance enquiry, Transaction details etc. over phone during the banking
hours.

Net banking- Through the concept of “the bank on your desktop”
customer can look up the status of his account, query & undertake a
range of financial transactions, simply by clicking the mouse.

5.10.2. Marketing Strategies of ICICI Bank:

ICICI focus on enhancing customer proposition through a combination
of physical &technology platforms and innovative product offerings focused
on increasing convenience for customers by expanding technology-based
offerings, including 24x7 electronic branches and tab banking. The bank
continued to focus the strategy of “Khayaal Aapka” and building long-term
relationship with customers. During2013, The bank introduced innovative
product features such as the “My Savings Rewards” programme and the
“iWish” flexible recurring deposit product. “My Savings Rewards”

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programme allows customers to accumulate reward points on a host of savings
account transactions such as bill pay, online shopping, EMI payments and
many more.

Further, 24x7 fully electronic branches aimed at providing simple,

effortless and convenient banking to customers. These branches enable
customers to undertake real time transactions like cash deposits, cash
withdrawals, cheque deposit, fund transfer, opening fixed deposits, generating
bank statement and other transactions. These branches are also equipped with
video conferencing facility which allows with customer service staff
interaction when required. The bank enhanced the product suite offered
through their internet banking platform and customised it to meet requirements
of different customer segments.

The banks mobile banking application has also grown and currently has
over one million customers. It has emerged as the market leader in mobile
transactions in value terms. ICICI also pioneered social media-linked products
during fiscal 2013 like Facebook banking and iWish, an online flexible
recurring deposit. iWish is an innovatively designed product, launched for the
first time in India, where a customer saves funds to fulfil a future desire or
goal. The customer has the flexibility to decide on when and how much to save
for the particular goal. They can also share their goals on Facebook with
friends and family who may choose to contribute towards the purpose. Further,
for customers who prefer to transact online, the bank has enhanced their
savings account portfolio with the offering of “b2”, a fully online savings
account. “b2” targets the rapidly growing internet savvy Indian population and
offers an effortless banking experience.

The sales team in major cities today offer “Tab Banking”, wherein
people are able to open bank accounts using tablets in less than 24 hours.
These tablets are also equipped with product videos, introducing customers to
various product features. Further, “E-Locker”, an online service for storing
important documents, was introduced for wealth and privilege banking
customers. Customer convenience, superior banking experience, technology

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innovations and a large network of branches and ATMs continue to

differentiate ICICI in the banking industry. We have the largest branch
network among private sector banks. “May I Help You” desks at every branch
are now equippedto provide across-the-counter information related to
transactions, cheque deposits and account details.

Following RBI’s regulations permitting domestic remittances for non-

account holders,ICICI Bank was among the first banks to commence its ‘cash
to account’ transfer facility through its Business Correspondents. The bank has
innovated different platforms that facilitate remittance services. Their ‘Mobile
Money’platform offered in conjunction with leading telecom providers enables
customers to transfer money safely through their mobile phones. Further,
through Mobile Money, a gamut of financial services such as deposits and
cash withdrawals, money transfer to third parties, prepaid mobile recharge and
various utility bill payments are offered.

In order to support the growth of the rural markets the bank expanded
their reach and access through a strong network of rural branches and Business
Correspondents.At presnt the bank has 464 rural branches including 131
Gramin branches in unbanked villages. ICICI Bank’s Gramin branches are
specially designed to offer services which are required in these unbanked
areas. Through these branches, the Bank facilitates banking services to
customers in the villages and also facilitates payment of government benefits
to beneficiaries.Technology has been a critical contributor to the success of the
business correspondent model,with the use of innovative technology solutions
such as biometric enabled Point of Sale (POS) devices and mobile handsets.

5.10.2.1. Leveraging innovation and technology:

Constant innovation and challenging the status quo have been key
aspects of the Bank’s culture. Ideas that bring about change in order to
continually improve, adapt and create competitive advantage are encouraged
among all employees, irrespective of their position or function. Innovation at
the Bank is a well-structured process and is nurtured by the Innovation

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Steering Committee. The Bank strives to offer innovative services to its

customers by implementing new technologies in various areas. The Bank is
credited with many firsts in India such as internet banking, mobile banking,
automated branches and iWish. The recent Tab Banking initiative by the Bank
is another first in the country.

The Bank has leveraged technology and used innovative methods to

assist employees to serve the customers effectively. It uses game and
simulation based training to develop service and transaction processing skills
in employees. The Bank now provides real-time performance support to
employees “Business Companion”, a smart phone/tablet based performance
support tool for employees across business groups who need real time, on-the-
go access to critical product and process related information.Easy access to
product and process knowledge, while on the move, has helped the
relationship teams and operations groups to reduce rework and strengthen
“leadership through service” proposition to the customers.

Technology has been central to ICICI Bank’s initiatives in enhancing the

banking experience for the customers. The bank enhanced the technology
platform to continuously augment functionalities in all channels including
ATMs, phone banking, internet banking and mobile banking and also
strengthen delivery capabilities and technology infrastructure.

The bank focused on understanding customer requirements, improving

customer convenience and reducing turnaround time have kept ICICI ahead as
a technology leader in Indian banking for over a decade. During the year,
banks technology strategy was aligned towards meeting the ‘Khayaal Aapka’
promise to customers. They introduced a range of services like 24X7
electronic branches, video-conferencing from branches, Money2India on
mobile, Tab Banking and Bank-on-the-move to enhance customer
convenience.

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5.10.3. Human Resources

The Bank is of the view that good service is integral to the quality of
business generated and when employees experience service orientation
themselves, they would exemplify the same towards customers. This led to the
launch of Saath Aapka as the Bank’s promise to its employees, similar to the
Khayaal Aapka promise to customers. Saath Aapka emphasises five anchors:
• Growth & Learning
• Meritocracy
• Care
• Enabling Environment
• Winning Organisation
In this context, the HR strategy is focused on:

A culture of meritocracy & high performance balanced with
sensitivity:
The Bank is a caring meritocracy. While the leaders in the Bank are
demanding when it comes to Performance, they are also sensitive and caring
towards their team members and colleagues. Treating others with respect,
dignity and empathy are important aspects of the Bank’s culture. The leaders
in the Bank support their team members during difficult times and invest their
personal time to develop team members’ capabilities. All HR policies and
practices are underpinned by the Bank’s philosophy of being a caring
meritocracy. The Bank has liberal leave policies which are aligned to cater to
the life stage needs of the employees. The Bank provides specific leave for
adoption, childcare, fertility treatment and maternity in addition to privilege
leave, casual leave and flexible sick leave. The Bank has established a 24X7
emergency helpline to support employees and their family members. The Bank
has launched Quick Response Teams (QRT) to assist women employees if
they are in distress while commuting. Each QRT has a GPS-enabled vehicle,
with a stretcher and other equipment, and a team trained to deal with medical
and personal safety related emergencies. The Bank believes that the care it
shows towards employees, will motivate them to exhibit the philosophy of
Khayaal Aapka while dealing with customers.

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Investing in pre-employment training and support structures for

new recruits:
It has been seen that the higher education system in India does not
adequately prepare students with the requirements of the workplace and hence
young employees often struggle in the initial years of their professional life.
As a result, they suffer from low productivity leading to erosion in self-
confidence which adversely impacts their performance. To address this
challenge, the Bank decided to move to a model of investing in young people
and making them job-ready, even before they join the Bank. Further, the Bank
broke the stereotype definition of talent, by identifying nascent talent in the
hinterland of the country, beyond the metropolitan cities. This strategy, since
its implementation in 2006, has enabled the Bank to build robust capacity for
creating a steady pool of pre-trained, job-ready talent not only for itself but
also for the banking & financial services sector. The Bank launched a number
of industry-academia programmes such as the Institute for Banking, Finance &
Insurance (IFBI) for entry-level jobs in customer service and operations; ICICI
Bank Sales Academy for front line sales roles; ICICI Manipal Academy (IMA)
for entry level managerial roles and ICICI Business Leadership Programmes
for roles in risk management, wholesale banking, treasury and IT. All these
programmes have significant focus on skill building through practice sessions
in classrooms as well as structured internship in the Bank’s branches and
offices. To strengthen the philosophy of ‘Khayaal Aapka’, new staff joining
the branches undergoes a practice oriented programme called “skill through
drill”.

They provide inputs on the Bank’s products, norms, IT systems, service

philosophy and the regulatory guidelines, equipping the new employees with
required knowledge and skills even before they join the Bank. The various
industry-academia programmes serve the twin objectives of acculturation and
ensuring first day-first hour productivity of the new hires. This investment in
industry academia initiatives has made a significant impact on sales and
customer service.

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The Bank continues to leverage technology for offering knowledge and

learning products to its employees. During 2012-13 the bank has launched
mobile phone based performance support tools for relationship managers in the
small and medium enterprises group and in the commercial banking group.
These performance support tools help retrieve critical product/process
information and assist relationship managers in customer profiling and
services while on the move.

5.11.Conclusion
This chapter describe the concept of bank marketing and marketing
strategies adopted by the sample banks in acquiring and retaining the customer
base.Bank Marketing has become a necessary survival weapon and is
fundamentally changing the banking industry worldwide. The rise of Bank
Marketing is redefining business relationships and the most successful banks
will be those that can truly strengthen their relationship with their customers.
Technology innovation and fierce competition among existing banks have
enable a wide array of banking products and services, being made available to
retail and wholesale customer through an electronic distribution channel,
collectively referred to as e-banking. Technology is altering the relationships
between banks and its internal and external customers..

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