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This document compares the effectiveness of retail banking services between public and private banks in India. It finds that private banks have advantages in speed, accuracy, and number of products and services offered, while public banks have a larger branch network and customer base. However, technology can help public banks improve. Overall, both sectors play an important role in boosting the Indian economy, but reforms are needed to strengthen skills, supervision, and performance in public banks.

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Nikhil Patni
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217 views

Project

This document compares the effectiveness of retail banking services between public and private banks in India. It finds that private banks have advantages in speed, accuracy, and number of products and services offered, while public banks have a larger branch network and customer base. However, technology can help public banks improve. Overall, both sectors play an important role in boosting the Indian economy, but reforms are needed to strengthen skills, supervision, and performance in public banks.

Uploaded by

Nikhil Patni
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Measuring Effectiveness of Retail Banking in

Public Banks and Private banks

Presented By:
Nikhil Patni
PGDM (2009-2011)
COMPANY PROFILE

• Axis Bank was the first of the new private banks to


have begun operations in 1994, after the Government
of India allowed new private banks to be established.
The Bank was promoted jointly by the Administrator
of the specified undertaking of:
1. UTI: Rs.100 crore
2. LIC: Rs. 7.5 crore
3. GIC: Rs. 6.0 crore

(Four subsidiaries of GIC contributing Rs. 1.5 crore each)


(a) National Insurance Company Ltd.
(b) The New India Assurance Company Ltd.
(c) The Oriental Insurance Company Ltd.
(d) United India Insurance Company Ltd.
Company : Vision and Core Values

Vision:

To be the preferred financial solutions provider excelling in customer


delivery through insight, empowered employees and smart use of
technology.

Core Values:
Customer Centricity
Transparency
Teamwork
Ownership
Ethics
The Bank today is capitalized to the extent of Rs. 359.76
crores with the public holding (other than promoters) at
57.79%.

The Bank's Registered Office is at Ahmedabad and its


Central Office is located at Mumbai. The Bank has a very
wide network of more than 853 branches and Extension
Counters (as on 30th June 2009). The Bank has a network
of over 3723 ATMs (as on 30th June 2009) providing 24 hrs
a day banking convenience to its customers. This is one of
the largest ATM networks in the country.
Meaning Of Retail Banking

“Retail banking is typical mass-market banking where


individual customers use local branches of larger
commercial banks. Services offered include: savings
and checking accounts, mortgages, personal loans,
debit cards, credit cards, and so”
Characteristics

Today’s retail banking sector is characterized


by three main basic characteristics:

-Multiple products (deposits, credit cards,


insurance, investments and securities);
-Multiple channels of distribution (call
centre, branch, Internet and kiosk); and
-Multiple customer groups (consumer,
small business, and corporate).
Retail Banking Products and services
Core Services Facilitating Services Supporting Services
Payment services •Cash •Payment at door step
•Foreign Services •Internet Services
•Traveller cheque •Telephone Banking
•DD/Bankers cheque
•ATM Card •Credit Card
Current Account and •Instruction to customer for •Debit Card
Saving Account Making Payment •Services to Senior Citizen
•Inter Branch Transfer of •Conversion of Excess
Funds Balance to Time
Loan Product: •Delivery of Loan
•Consumer Loan •Interest Loan Option
•Hosing Loan •Flexibility in Paying Loan
•Personal Loan •Legal Services of
Documentation
Insurance Products:
•Life Insurance
Imperative: New Business Initiatives
The new business initiatives coupled with changing customer profiles are being partly addressed
by technology enabled support infrastructure in banks. To successfully implement its business
strategy, banks will need to conduct an organization restructuring initiative to ensure seamless
conduct of multiple business processes for every business unit

• Changing customer profiles • Technology upgradation


• Increasing demands by triggering the need for
customers for varied Customer Infrastructure redesigned processes
services Relationship Support
• Increase effectiveness of
Management
• Higher expectations of the HR function
service quality especially for
‘anytime, anywhere’ banking Product /
Service
Development

• Increased focus on retail banking


• Tie-ups with financial institutions to market third
party products
• Foray into merchant banking
Technology- leads the Winning Combination
“The winners will be those institutions that tie their technology to their
strategies in order to meet their challenges.”

Cost
• Cutting Cost through Integration
• Better Information Management
Customer
• Reaching Customers Faster
• Managing Diverse Needs
Competition
Key Banking • Competitive Edge in
Technology Aspects its Strategic Group

Performance & Evaluation


• Better Metrics to Benchmark
Risk Management
Against Complexities
• Objective Evaluation Process •Easier Risk Identification
•Easier to Assess Risks
Initiatives Taken as Winning Strategies

Optimal HR
deployment
Slashing Expenses

Total Quality
Management
Product Structuring

Initiating continuous
Attempting Culture
improvement
Change
Research Methodology

Data Collection :
1. Primary Data via Structured Questionnaire
2. Secondary Data via Records/Reports of various Banks

Sample Size :
1. 100 customer (of Axis Bank)
2. 100 customer (of Bank of Rajasthan)
Analysis and Findings
1. HANDLING OF CUSTOMER GRIEVENANCES (COMPLAINTS)

AXIS BANK BANK OF RAJASTHAN


2. SPEED, ACCURACY AND PROMPTNESS IN TRANSACTIONS.

AXIS BANK BANK OF RAJASTHAN


3.NUMBER OF PRODUCTS AND SERVICES OFFERED.

AXIS BANK BANK OF RAJASTHAN


4. TIMING OF BANK

AXIS BANK BANK OF RAJASTHAN


OBSERVATIONS

Public sector banks have large branch network and the large customer
base, but it is the use of technology that will enable PSBs to build on
their strengths.

There is a large inadequate supervision and regulation in public sector


bank.

Private sector banks have less job security and lending rate is more as
compare to PSBs.

Hidden charges are much more in private sector banks as compare to


public sector banks.
SUGGESTIONS
PSBs need to fundamentally strengthen institutional skill levels
especially in sales and marketing, service operations, risk management
and the overall organizational performance ethic. The last, i.e.,
strengthening human capital will be the single biggest challenge.

New private banks could reach the next level of their growth in the
Indian banking sector by continuing to innovate and develop
differentiated business models to profitably serve segments like the
rural/low income and affluent/ HNI segments; actively adopting
acquisitions as a means to grow and reaching the next level of
performance in their service platforms. Attracting, developing and
retaining more leadership capacity would be key to achieving this and
would pose the biggest challenge .
CONCLUSION

There is nothing bad with the public sector banks, the


difference is in the policies. Because of loopholes in the
policies people uses banks for their personal cause.
Private sector banks boost the Indian economy as their
efficiency is much more than the Public sector banks.
Thank You

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