TITLE OF THE PROJECT

………………………………………………………………………………….
Name of the class……………………

Project Report submitted to :…………………………………………….

Name Of The College

Sarojini Naidu Government Girls P. G. (Autonomous)
College, Shivaji nagar, Bhopal, M.P.-462016

Signature(Guide)…………… Signature(Student)…………..
Name of guide………………. Name of student………………..
 “RETAIL PRODUCTS OFFERED BY BANKS”

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF MASTER OF COMMERCE(2010-2012)

SUBMITTED BY:

AKANKSHA KHANNA

ROLL NO.1024102

UNDER THE GUIDENCE OF

DR. PUSHPLATA CHOUKSEY

SAROJINI NAIDU GOVERNMENT GIRLS P.G. (AUTONOMOUS ) COLLEGE , SHIVAJI

NAGAR , BHOPAL , M.P. – 462016

(BARKATULLAH UNIVERSITY)
 DECLARATION

I, Akanksha Khanna hereby declare that the project report entitled “RETAIL PRODUCTS
OFFERED BY BANKS” has been written by me on the basis of books, internet and the data
provided by company and has not been submitted anywhere in any manner.

DATE : 24/10/2010

NAME : AKANKSHA KHANNA

CLASS : M COM (PREVES)

ROLL NO. : 1024102

ADDRESS : A-54, RBI

STAFF

COLONY, CHAR

IMLI,
BHOPAL

PHONE NO.:
8871341251
 ACKNOWLEDGEMENT

Interdepence is a higher value than independence. We all depend upon each other and this has
been the core concept of coexistence. Our belief in coexistence and interdependence has
further strengthened during the completion of this project. This work is a synergistic product of
many minds. It bears the imprints of several people and its important for me to give
appropriate credit to them who were helpful , directly or indirectly, in accomplishing this task. It
is impossible for us to enumerate all of them but I feel obliged to list few of them here.

I would like to thank each person for providing us with opportunity to interact with them and
for elping us immensely with inputs of their knowledge.

I highly indebted to faculty members, they were not only the source of inspiration and pleasure
but also provided warm and friendly atmosphere.

My special thanks to prof. PUSHPLATA CHOUKSEY (project guide) and faculty of Sarojini Naidu
Govt. Girls P.G. (autonomous) college for making the schedule of project work a smooth one
and for helping us a lot during the project period as well as during the teaching sessions.

Further, I would like to extend our thanks to all our friends for providing exceptional support
and motivation throughout our project period.

AKANKSHA KHANNA
M COM (PREV.)
 TITLE OF THE PROJECT

Study of the retail products offered by the banks and their selection and staffing process.

OBJECTIVES

 To analyze the factors that can increase the customer base.

 To know the products which give customers more satisfaction
 To gain knowledge of banking products and services
 DESCRIPTION REGARDING EFFORTS INVOLVED IN FINDING OUT
THE VARIOUS EMPLOYMENT OPPPORTUNITIES IN THE FIELD OF
EMPLOYMENT

Name of the option

Probationary officer

Stated option is related to which area

Semi government and private

From where I got the motivation regarding choosing the option

I opted for this project to gain knowledge about the banking products and services.
It has always been the subject of query to me that how customer base can be increased and to
know the products which give more satisfaction to customers.

Minimum qualification required

 Educational
Must be a Graduate from a recognized university with 55% aggregate.

 Technical
Certificate in computer operations from a reputed institute OR must have studied
computer science in degree level.

 Experience
Experience is not a compulsory condition but an experience for the person can be held
boon for him and can get him good salary.
 Any additional educational qualification
No such conditions are required.

 Competitive exams for the option

The selection process for Probationary Officers posts involves Written test (Objective,
Descriptive) and interview.

 Training required
Every bank has its own criteria of training. They themselves offer training to their
employees.

 From where I got the required information

Internet
Newspaper
Central Bank of india
State Bank of India

 Datewise description of visited institutions and information received

from them of the related option

NAME OF BRIEF DESCRIPTION OF

S No. NAME OF CONCERNED INFORMATION
DATE INSTITUTIO PERSON RECEIVED
N

1 20/10/2010 Central Bank of S. L. PRAJAPATI Products and services

India offered by the bank

2 23/10/2010 State Bank Of Shashi Chabra Retail products

India

 Description of various efforts involved in collecting required

information
The officials of the bank were very helpful and they helped generously in providing
information otherwise it would have been a tough job. The website of the banks have also
helped a lot.
 Future problems and their solution

o First, the market is seeing discontinuous growth driven by new products and
services that include opportunities in credit cards, consumer finance and wealth
management on the retail side, and in fee-based income and investment banking
on the wholesale banking side. These require new skills in sales & marketing,
credit and operations.

o Second, it is necessary to look for efficiencies in the business. Banks need to

access low cost funds and simultaneously improve the efficiency. The banks are
facing pricing pressure, squeeze on spread and have to give thrust on retail assets.

o Third, with increased interest in India, competition from foreign banks will only
intensify. Placing the right skill at the right place will determine success. The
competency gap needs to be addressed simultaneously otherwise there will be
missed opportunities. The focus of people will be on doing work but not
providing solutions, on escalating problems rather than solving them and on
disposing customers instead of using the opportunity to cross sell.

o Fourth, given the demographic shifts resulting from changes in age profile and
household income, consumers will increasingly demand enhanced institutional
capabilities and service levels from banks.

 During project work, what differences we found between classroom and

theoretical knowledge and their practical application
During classroom studies or theoretical studies we take few examples and study about
their inferences and then conclude , but while doing it practically we have to work really
hard and leave no stone unturned. Therefore, we should take theoretical knowledge
seriously because theory and practical are two sides of one coin.

 What are other expectations from theoretical studies

Theoretical studies should be made more complex to match the level of practical studies.
Instead of few examples, we should study on large scale basis, so that we don’t face
problems during practicals.
 INTRODUCTION

The Indian Economy has different sectors on which it is dependent for its growth. In turn, the
industries are dependent on the economical changes.

Services Industry is the second largest industry in terms of equity in the Indian Economy and
generates the maximum revenues. Among the service industry, again the banking sector is the
highest contributor towards the economy.

Banking industry plays major role in the growth of the Indian economy. The banking sector is
the oldest sector of the economy as from the beginning and it is the major contributor towards
the economy GDP.

With liberalization of the Indian economy in 1991, the banks were given special reforms and the
foreign banks were allowed to trade in the Indian economy. That was the time when the banking
sector of the economy changed and the functioning of the banks liberal.

As the banking sector was increasing there was increase in the public as well as private banks.
With the increase in the banks there is a stiff competition among the banks. Almost with the
same type of products they have to stand out to beat their competitors.

Studying the banking sector will give me a platform about the working of the banks and provide
me with the knowledge of financial products provided by them.

Banking sector has shown tremendous growth with the help of the government policies. It is this
growth momentum that despite slowdown in the Indian economy, the sector is still growing.
 BANKING INDUSTRY OVERVIEW

The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1
trillion by 2010. An expanding economy, middle class, and technological innovations are all
contributing to this growth.

The country’s middle class accounts for over 320 million people. In correlation with the growth
of the economy, rising income levels, increased standard of living, and affordability of banking
products are promising factors for continued expansion.

The Indian banking Industry is in the middle of an IT revolution focusing on the expansion of
retail and rural banking. Players are becoming increasingly customer centric in their approach,
which has resulted in innovative methods of offering new banking products and services. Banks
are now realizing the importance of being a big player and are beginning to focus their attention
on mergers and acquisitions to take advantage of economies of scale and/or comply with Basel II
regulation.

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949
can be broadly classified into two major categories, non-scheduled banks and scheduled banks.
Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State Bank of India and its
group banks, regional rural banks and private sector banks (the old/ new domestic and foreign).
These banks have over 67,000 branches spread across the country.

Today, there are 30 private sector banks in the banking sector: 22 old private sector banks and 8
new private sector banks. These new banks have brought in state-of-the-art technology and
aggressively marketed their products. The Public sector banks are facing a stiff competition from
the new private sector banks. The banks which have been setup in the 1990s under the guidelines
of the Narasimham Committee are referred to as NEW PRIVATE SECTOR BANKS.

The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for
more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with
excessive Non Performing assets (NPAs), massive manpower and lack of modern technology.
On the other hand the Private Sector Banks are making tremendous progress. They are leaders in
Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned
they are likely to succeed in the Indian Banking Industry.
BANKING STRUCTURE IN INDIA
 Retail Banking

Retail banking services are a group of financial services offered to the general public or
individual customers that includes installment loans, residential mortgages, equity credit loans,
deposit services, and individual retirement accounts. It is also called consumer banking. Retail
banking is a high volume business with many service providers competing for market share.
Services offered include: savings and checking accounts, mortgages, personal loans, debit cards,
credit cards, and so forth.

The retail banking strategies of banks are undergoing major transformation, as banks adopt a mix
of strategies like organic growth, acquisitions and alliances. This has resulted in a paradigm shift
in the marketing strategies of the banks. Public Sector Banks players are adopting aggressive
strategies, leveraging their branch network and their customer base to earn a larger share of the
retail pie. Banks are also going in for innovative strategies like cross selling and packaged selling
of retail products. At the same time, new foreign players are also entering this high growth
sector.

The Retail Banking environment today is changing fast. The changing customer demographics
demand to create a differentiated application based on scalable technology, improved service and
banking convenience. Higher penetration of technology and increase in global literacy levels has
set up the expectations of the customer higher than never before. Increasing use of modern
technology has further enhanced reach and accessibility.

The market today is throwing a challenge to provide multiple and innovative contemporary
services to the customer through a consolidated window so as to ensure that the bank’s customer
gets “Uniformity and Consistency” of service delivery across time and at every touch point
across all channels. The pace of innovation is accelerating and security threat has become a
concern of all electronic transactions. High cost structure rendering mass-market servicing is
prohibitively expensive.
 PRODUCT SCOPE

Banks offer a bunch of products and services to meet the every need of the people. The
company cares for both, individuals as well as corporate and small and medium enterprises. For
individuals, the company has a range accounts, investment, and pension scheme, different types
of loans and cards that assist the customers. The customers can choose the suitable one from a
range of products which will suit their life-stage and needs. For organizations the company has a
host of customized solutions that range from funded services, Non-funded services, Value
addition services, Mutual fund etc. These affordable plans apart from providing long term value
to the employees help in enhancing goodwill of the company. The products of the company are
categorized into various sections which are as follows:

 Accounts and deposits

 Loans

 Investments and Insurance

 Forex and payment services

 Cards
 Loan Product Deposit Deposit Product Investment & Insurance

•Auto Loan • Saving a/c • Mutual Fund

• Loan Against Security • Current a/c •Bonds

•Loan Against Property • Fixed deposit • Knowledge Centre

•Personal loan • Demat a/c • Insurance

•Credit card • Safe Deposit Locker • General and Health

Insurance
•2-wheeler loan
• Equity and Derivatives
•Commercial vehicles
finance • Mudra Gold Bar

•Home loans

Cards Payment Services Payment Services

• Credit Card • Net Safe • Net Banking

• Debit Card • Merchant
• One View
• Prepaid Card • Prepaid Refill
• Insta Alert Mobile Banking
Forex Services • Bill pay
• ATM
• Visa Bill pay
 Product & Services • Phone Banking
 Trade Services • Insta Pay
 Forex service Branch • Email Statements
Locater • Direct Pay
 RBI Guidelines • Branch Network
• Visa Money Transfer
• e–Monies Electronic Funds
Transfer

RETAIL BANKING PRODUCTS