A PROJECT REPORT ON

“COMPARATIVE ANALYSIS OF BANKS

AND
MARKET POTENTIAL OF
SAVINGS ACCOUNTS”
A Dissertation submitted to Standard Chartered Bank

Prepared by:
Pankaj kumar Srivastava
MBA-Marketing & Finance

ACKNOWLEDGEMENT
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I take this opportunity to express my deep sense of gratitude to all those who have
contributed significantly by sharing their knowledge and experience in the completion of
this project work.

I am greatly obliged to Prof P.K.Divakaran, Director, I.S.C.S, Pune for providing me

the right kind of opportunity and facilities to complete this venture.

My first word of gratitude is due to Mr. Nitish Dipankar, Area Sales Manager Standard
Chartered Bank, Branch – New Friends Colony, New Delhi, my corporate guide, for his
kind help and support and for his valuable guidance throughout the project. I am
thankful to him for providing me with necessary insights and helping me out at every
single step.

My heartfelt thanks to my respected Faculty Guide namely Prof. M.V.Kulkarni Without

her continuous help the project would not have been materialized in the present form.
Her valuable suggestions helped me at every step.

Finally, I would also like to thank all my dear friends for their kind cooperation, advice
and encouragement during the long and arduous task of preparing this report and
carrying out the project.

At last but not the least, who are always at the top of my heart, my dear family
members whose blessings, inspiration and encouragement have resulted in the
successful completion of this project.

Pankaj kumar Srivastava

MBA-Marketing & Finance

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 DECLARATION

I hereby declare that the project report titled “__COMPARATIVE ANALYSIS

OF VARIOUS BANKS & MARKET POTENTIAL OF SAVINGS ACCOUNTS
IN NCR __” at Standard Chartered Bank is my own work and has been
carried out under the able guidance of Mr. Nitish Dipankar, Area Sales
Manager Standard Chartered Bank, Branch – NEW FRIENDS COLONY, New
Delhi and Prof. M.V.Kulkarni, Faculty, I.S.C.S,Pune. All care has been taken to
keep this report error free and I sincerely regret for any unintended
discrepancies that might have crept into this report. I shall be highly obliged
if errors (if any) be brought to my attention.

Thank You.

Pankaj kumar
Srivastava
PGP-Marketing &
Finance

Page 3 of 103
Sr. No. Topics Page
no.
1. Executive Summary 5
2. Background of the Study 7
3. Company Analysis
 Company Profile 13

 SWOT Analysis 21
4. Problem Definition 32
5. Objective 33
6. Scope 34
7. Research Methodology 35
8. Market Profile
 Delhi 39

 Gurgaon 40

 Noida 41

 Greater Noida 42
9. Primary Data Collection Methods 43
10. Findings & Analysis
- Graphical Analysis 47
- Test Estimation Of Market Potential Using z-Test
79
11. Conclusion 87
12. Recommendations 88
13. Limitations 93
14. References 94
15. Appendices 95

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 EXECUTIVE SUMMARY

The objective of the project was to comparatively analyze various banks and find the
market potential of ULIP’s (UNIT LINKED INSURANCE PLANS) in Delhi and NCR regions.
Standard Chartered bank got the research carried out to find what the current trends
are in the market and what the competitor’s product offerings are. Also, market share of
different banks was to be found and the recommendations to increase the market share
for Standard Chartered bank were to be given.

The purpose of the study is to find out the market potential of ULIP’s and position of
standard chartered bank as compared to other banks. Standard Chartered Bank is
interested in finding out the sales potential of its ULIP’s. Specifically, the research
objectives are to:
• Gauge the consumer sentiment on the various services provided by the various
banks in the city.
• Identify areas of improvement on the various services provided by the bank
• Determine the type of services needed by the consumers.
• Identify the important and attractive attributes in services to retain the existing
consumers.
• Determine the type of banking parameters most popular with the consumer.
• Identify the important characteristics that make the bank attractive to open a
savings account
• Evaluate the sales potential of Standard Chartered ULIP’s by the year 2010.
• Gather and analyze the future aspirations of the customers with respect to the
banking services and ULIP’s.
• Rank and evaluate the relative importance the various banking parameters.

For this purpose a primary research was conducted in the region of New Delhi and NCR
regions. The target consumers were of various age –group, sex, monthly income and
occupation. The total field work was done for 40 days in which a total sample size of 100
consumers was covered. The questions cover a wide range of issues including:
• Identifying the types of accounts and Investments maintained by a consumer
and whether he or she is happy with the services.
• Obtain the likelihood of the respondent applying for a specific type of services
while opening a Savings Account.

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 • Determine the characteristics of the various banking features that are important
for customer

For the purpose of this research it was absolutely imperative for me to find out what the
consumers want from their banks. It was also necessary to find out the consumer’s
profile, i.e. his age, monthly income, occupation and sex and also the current bank with
whom he/she is banking. This required me to get a detailed questionnaire filled by the
concerned person. All the analysis in the report is drawn out of these questionnaires. For
carrying out the competitor analysis further help was taken from bank websites and
journals. This research will provide Standard Chartered bank with information like the
current market share of banks and also a detailed analysis of the services offered by
other banks and what are the most important criteria for selecting a particular bank. The
bank can also get data on prospective customers by designing its product offerings and
marketing strategy in a way so as to attract more clients in the near future.

The following vital conclusions were derived:

• Trust needs to be developed among the customers both as far as the ULIP as a
product is concerned and also regarding private players (Standard Chartered)
particularly in our study.
• Some respondents despite of knowing about ULIP were hesitant to talk on it
because they were not too confident about their knowledge. This very fact
completely declines the concept of providing switches as a lucrative feature in
ULIP (which is done by most of the companies). The reason is that very rarely
people have the ability or time to use these features.
• Awareness was missing.

• Mainly high income group and business class people have accounts in standard
chartered bank.

Important Recommendations that were suggested are:

• Building trust by providing the customers with adequate knowledge about the
company and then the products.
• Enhancing the level of awareness in terms of the company, their Partners and then
the product and special emphasis among the female chunk of the population.

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 • Using the Brand equity of Standard Chartered to promote Bajaj Allianz (Business
assurance model) rather than doing it other way since brands like Bajaj are not
enjoying the same image today what they did years back.

INTRODUCTION

INDIAN BANKING SECTOR

The Indian banking industry is going through turbulent times. With the lowering of entry
barriers and blurring product lines of banks and non-banks since the financial sector
reforms, banks are functioning increasingly under competitive pressures emanating from
within the banking system, from non- banking institutions, and from the domestic and
international capital markets. India’s banking sector is growing at a fast pace. India has
become one of the most preferred banking destinations in the world. The reasons are
numerous: the economy is growing at a rate of 8%, Bank credit is growing at 30% per
annum and there is an ever-expanding middle class of between 250 and 300 million
people (larger than the population of the US) in need of financial services. All this
enables double-digit returns on most asset classes which is not so in a majority of other
countries. Foreign banks in India achieving a return on assets (ROA) of 3%, their keen
interest in expanding their businesses is understandable. Indian markets provide growth
opportunities, which are unlikely to be matched by the mature banking markets around
the world.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks
(that is with the Government of India holding a stake), 29 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges) and
31 foreign banks. They have a combined network of over 53,000 branches and 17,000
ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and foreign
banks holding 18.2% and 6.5% respectively.
In order to gain further access to the global trade, the government is expanding the
Free Trade Agreements (FTA’s) with many countries (like Singapore, Thailand, and other
ASEAN members). After the Comprehensive Economic Co-Operation Agreement (CECA)
with Singapore, the government is now planning a similar deal with the 25-member
European Union. The EU is also likely to ask India to liberalize its financial sector on the
lines of the India-Singapore CECA.

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New Business Opportunities:

With the interest income coming under pressure, banks are urgently looking for
expanding fee-based income activities. Banks are increasingly getting attracted towards
activities such as marketing mutual funds and insurance policies, offering credit cards to
suit different categories of customers and services such as wealth management and
equity trading. These are indeed proving to be more profitable for banks than plain
vanilla lending and borrowing.

Major foreign banks in India are as follows:

• ABN-AMRO Bank
• Abu Dhabi Commercial Bank Ltd.
• American Express Bank Ltd
• BNP Paribas
• Citibank
• DBS Bank Ltd
• Deutsche Bank
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 • HSBC Ltd
• Standard Chartered Bank

INVESTMENT SCENERIO IN INDIA

Investments, unlike works of art, cannot afford the luxury of experimenting. Investing is
not guesswork. It takes more than just a 'tip', it needs training to plan, instinct to pick
and sheer intellect to make it work for the investor. Human nature is fickle, his wants
keep changing.

Many individuals find investments to be fascinating because they can participate in the
decision making process and see the results of their choices. Not all investments will be
profitable, as investor wills not always make the correct investment decisions over the
period of years; however, you should earn a positive return on a diversified portfolio. In
addition, there is a thrill from the major success, along with the agony associated with
the stock that dramatically rose after you sold or did not buy. Both the big fish you catch
and the fish that get away can make wonderful stories.

Investing is not a game but a serious subject that can have a major impact on investor's
future well being. Virtually everyone makes investments. Even if the individual does not
select specific assets such as stock, investments are still made through participation in
pension plan, and employee saving programme or through purchase of life insurance or
a home. Each of this investment has common characteristics such as potential return
and the risk you must bear. The future is uncertain, and you must determine how much
risk you are willing to bear since higher return is associated with accepting more risk.

The individual should start by specifying investment goals. Once these goals are
established, the individual should be aware of the mechanics of investing and the
environment in which investment decisions are made. These include the process by
which securities are issued and subsequently bought and sold, the regulations and tax
laws that have been enacted by various levels of government, and the sources of
information concerning investment that are available to the individual.

An understanding of this financial background leads to three important general financial

concepts that apply to investing.

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Today the field of investment is even more dynamic than it was only a decade ago.
World event rapidly-events that alter the values of specific assets the individual has so
many assets to choose from, and the amount of information available to the investors is
staggering and continually growing.

An investment can be described as perfect if it satisfies all the needs of all investors. So,
the starting point in searching for the perfect investment would be to examine investor
needs. If all those needs are met by the investment, then that investment can be
termed the perfect investment.

Most investors and advisors spend a great deal of time understanding the merits of the
thousands of investments available in India. Little time, however, is spent understanding
the needs of the investor and ensuring that the most appropriate investments are
selected for him.

SAVING BANK ACCOUNT

Bank savings accounts are a critical part of everybody's financial picture. If you need a
safe place to keep money, a bank savings account is often a good choice. Here’s a quick
review of what savings accounts are and why you might want to have a bank savings
account.

A bank savings account is a type of account designed to simply hold money that you
do not need immediate access to.

Savings Bank Accounts are meant to promote the habit of saving among the citizens
while allowing them to use their funds when required. The main advantage of Savings
Bank Account is its high liquidity and safety. On top of that Savings Bank Account
earn moderate interest too. The rate of interest is decided and periodically reviewed
by the Government of India. Presently, the rate of interest is 3.5% compounded half
yearly.

Savings Bank Account can be opened in the name of an individual or in joint names of
the depositors. Savings Bank Accounts can also be opened and operated by the minors
provided they have completed ten years of age. Accounts by Hindu Undivided Families
(HUF) not engaged in any trading or business activity, can be opened in the name of the
Karta of the HUF.

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 INTRODUCTION TO ULIPS

Unit linked insurance plan (ULIP )is the Product Innovation of the conventional Insurance
product. With the decline in the popularity of traditional Insurance products & changing
Investor needs in terms of life protection, periodicity, returns & liquidity, it was need of
the hour to have an Instrument that offers all these features bundled into one.

ULIP is life insurance solution that provides for the benefits of protection and flexibility in
investment. The investment is denoted as units and is represented by the value that it
has attained called as Net Asset Value (NAV). The policy value at any time varies
according to the value of the underlying assets at the time. ULIPs attempt to fulfill
investment needs of an investor with protection/insurance needs of an insurance seeker.

ULIPs work on the premise that there is class of investors who regularly invest their
savings in products like fixed deposits (FDs), coupon-bearing bonds, debt funds,
diversified equity funds and stocks. There is another class of individuals who take
insurance to provide for their family in case of an eventuality. So typically both these
categories of individuals (which also overlap to a large extent) have a portfolio of
investments as well as life insurance. ULIP as a product combines both these products
(investments and life insurance) into a single product. This saves the investor/insurance-
seeker the hassles of managing and tracking a portfolio of products. Presently there are
200 plus ULIP Schemes in the market.

ULIPs offer a variety of options to the individual depending on his risk profile. For
instance, an individual with an above-average risk appetite can choose a ULIP option
that invests upto 60% of premium in equities. Likewise, an individual with a lower risk
appetite can select a ULIP that invests up to 20% of premium in equities.

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Features of ULIP

ULIP distinguishes itself through the multiple benefits that it provides to the consumer.
The plan is a one-stop solution providing:

 Capital Appreciation
 Life protection
 Investment and Savings Flexibility
 Adjustable Life Cover
 Investment Options
 Transparency
 Options to take additional cover against
 Death due to accident
 Disability
 Critical Illness
 Surgeries
 Liquidity
 Tax planning

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 COMPANY PROFILE

STANDARD CHARTERD BANK

The Standard Chartered Group was formed in 1969 through a merger of two banks: The
Standard Bank of British South Africa founded in 1863 and the Chartered Bank of India,
Australia and China, founded in 1853.

Both companies were keen to capitalise on the huge expansion of trade and to earn the
handsome profits to be made from financing the movement of goods from Europe to the
East and to Africa.

The Chartered Bank

• Founded by James Wilson following the grant of a Royal Charter by Queen Victoria
in 1853.
• Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai
in 1858, followed by Hong Kong and Singapore in 1859.
• Traditional business was in cotton from Mumbai (Bombay), indigo and tea from
Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila
and silk from Yokohama.
• Played a major role in the development of trade with the East which followed the
opening of the Suez Canal in 1869 and the extension of the telegraph to China in
1871.
• In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's
Cyprus Branches. This established a presence in the Gulf.

The Standard Bank

• Founded in the Cape Province of South Africa in 1862 by John Paterson.

Commenced business in Port Elizabeth, South Africa, in January 1863.
• Was prominent in financing the development of the diamond fields of Kimberley
from 1867 and later extended its network further north to the new town of
Johannesburg when gold was discovered there in 1885.
• Expanded in Southern, Central and Eastern Africa and by 1953 had 600 offices.

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 • In 1965, it merged with the Bank of West Africa expanding its operations into
Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

In 1969, the decision was made by Chartered and by Standard to undergo a friendly
merger. All was going well until 1986, when a hostile takeover bid was made for the
Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard
Chartered entered a period of change. Provisions had to be made against third world
debt exposure and loans to corporations and entrepreneurs who could not meet their
commitments. Standard Chartered began a series of divestments notably in the United
States and South Africa, and also entered into a number of asset sales.

From the early 1990s, Standard Chartered has focused on developing its strong
franchises in Asia, the Middle East and Africa using its operations in the United Kingdom
and North America to provide customers with a bridge between these markets.
Secondly, it would focus on consumer, corporate and institutional banking and on the
provision of treasury services - areas in which the Group had particular strength and
expertise.

At Standard Chartered, success is built on teamwork, partnership and the diversity of

our people. At the heart of their values lie diversity and inclusion. They are a
fundamental part of their culture, and constitute a long-term priority in our theirs to
become the world's best international bank.Today they employ 73,000 people,
representing 115 nationalities, and you'll find 61 nationalities among our 500 most
senior leaders. We believe this diversity helps to fuel creativity and innovation,
supporting the development of exciting new products and services for our customers
worldwide.

Standard Chartered PLC is listed on both the London Stock Exchange and the Stock
Exchange of Hong Kong and is in the top 25 FTSE-100 companies, by market
capitalization. Following the acquisition of Korea First Bank, Standard Chartered now
employs 38,000 people in 950 locations in more than 50 countries in the Asia Pacific
Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.

It serves both Consumer and Wholesale Banking customers. Consumer Banking provides
credit cards, personal loans, mortgages, deposit taking and wealth management
services to individuals and small to medium sized enterprises. Wholesale Banking

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provides corporate and institutional clients with services in trade finance, cash
management, lending, securities services, foreign exchange, debt capital markets and
corporate finance.

Standard Chartered is well established in growth markets and aims to be the right
partner for its customers. The Bank combines deep local knowledge with global
capability.

The Bank is trusted across its network for its standard of governance and its
commitment to making a difference in the communities in which it operates.

Type Public

Founded 1853

Headquarters London, England, UK

Key people E. Mervyn Davies CBE, Chairman, Peter Sands, Chief Executive

Industry Banking

Products Financial Services

Revenue $11.067 billion (2007)

Operating
$4.035 billion (2007)
income

Net income $2.989 billion (2007)

Employees 73,000 (2008)

Website www.standardchartered.com
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 Current position Of Standard Chartered Bank

Today, the bank is a leading player throughout the developing world.

Standard Chartered Bank is one of the three banks issuing banknotes for Hong Kong
(Standard Chartered Bank (Hong Kong) Limited became a note-issuing bank from
2004), the other two being the Bank of China (Hong Kong) and The Hongkong and
Shanghai Banking Corporation.

The bank supports marathons in many cities, including London (The City Run), Jersey,
Singapore, Dubai, Lahore, Mumbai, Hong Kong, and Nairobi.

Standard chartered bank has its global presence in all over America, Asia, Africa,
Middle east, and Europe.

In its unique position as an international bank with strong franchise, Standard Chartered
combines an in-depth knowledge of local markets with global product expertise to offer

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effective financial solutions. The bank capitalizes on its onshore presence across Asia,
Africa and the Middle East to offer customers convenient and reliable access to the
widest range of currency markets, to date local market information, country-specific
global risk management strategies, and customized capital raising and liquidity
management solutions.

Establishment of Standard Chartered Bank around the world

Country Year Established Country Year Established

United Kingdom 1853 Australia 1964
China, India, Sri
1858 Mexico, Oman 1968
Lanka
Hong Kong,
1859 Peru 1973
Singapore
Indonesia,
1863 Jersey 1978
Pakistan
Philippines 1872 Brazil 1979
Malaysia 1875 Venezuela 1980
Falkland Islands,
Japan 1880 1983
Macau
Zimbabwe 1892 Taiwan 1985
The Gambia,
Sierra Leone, 1894 Cameroon 1986
Thailand
Ghana 1896 Nepal 1987
Botswana 1897 Vietnam 1990
Cambodia, South
USA 1902 1992
Africa
Bangladesh 1905 Iran 1993
Zambia 1906 Colombia 1995
Kenya 1911 Laos, Argentina 1996
Uganda 1912 Nigeria 1999
Tanzania 1917 Lebanon 2000
Bahrain 1920 Cote d’Ivoire 2001
Jordan 1925 Mauritius 2002
Korea 1929 Turkey 2003

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Qatar 1950 Afghanistan 2004
Brunei, UAE 1958

Recent alliances and strategic acquisitions

In 2000, Standard Chartered acquired Grindlays Bank from ANZ Bank, increasing its
presence in private banking and further expanding its operations in India and Pakistan.
Standard Chartered retained Grindlays' private banking operations in London and
Luxembourg and the subsidiary in Jersey, all of which it integrated into its own private
bank. This now serves high net worth customers in Hong Kong, Dubai, and
Johannesburg under the name Standard Chartered Grindlays Offshore Financial
Services. In India, Standard Chartered integrated most of Grindlays' operations, making
Standard Chartered the largest foreign bank in the country, despite Standard Chartered
having cut some branches and having reduced the staff from 5500 to 3500 people.

On 15th April 2005, the bank acquired Korea First Bank, beating HSBC in the bid. Since
then the bank has rebranded the branches as SC First Bank.

Standard Chartered completed the integration of its Bangkok branch and Standard
Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered
Bank (Thailand). Standard Chartered also formed strategic alliances with Fleming Family
& Partners to expand private wealth management in Asia and the Middle East, and
acquired stakes in ACB Vietnam, Travelex, American Express Bank in Bangladesh and
Bohai Bank in China.

On 9th August 2006 Standard Chartered announced that it had acquired an 81%
shareholding in the Union Bank of Pakistan in a deal ultimately worth $511 million. This
deal represented the first acquisition by a foreign firm of a Pakistani bank and the
merged bank, Standard Chartered Bank (Pakistan), is now Pakistan's sixth largest bank.

On 22 October, 2006 Standard Chartered announced that it has received tenders for
more than 51 per cent of the issued share capital of Hsinchu International Bank
(“Hsinchu”). On completion of the offer, Standard Chartered will have majority

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ownership of Hsinchu, Taiwan’s seventh largest private sector bank by loans and
deposits as at 30 June, 2006.

In 2006, Standard Chartered in Bangladesh, announced an alliance with Dutch Bangla

Bank Ltd to share their respective ATM operations.

On 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percent

of an Indian brokerage firm (UTI Securities) for $36 million in cash from Securities
Trading Corporation of India Ltd., with the option to raise its stake to 75 percent in 2008
and, if both partners agree, to 100 percent by 2010. UTI Securities offers broking,
wealth management and investment banking services across 60 Indian cities.

On 29th February 2008, Standard Chartered PLC announced it has received all the
required approvals leading to the completion of its acquisition of American Express Bank
Ltd (AEB) from the American Express Company (AXP). The total cash consideration for
the acquisition is US$ 823 million.

The acquisition of AEB provides Standard Chartered with an opportunity to add

capability, scale and momentum in the strategically important Financial Institutions and
Private Banking businesses. It will add 19 more markets to the Standard Chartered
footprint, while deepening presence in some core markets and providing access to
several new growth markets.

STANDARD CHARTERED BANK IN INDIA

Standard Chartered Bank is the largest international banking Group in India with 78
branches in 30 cities. The Bank is having a combined customer base of 2.5 million in
retail banking and over 1200 corporate customers.

The key businesses of Standard Chartered Bank in India include consumer banking -
primarily credit cards, mortgages, personal loans and wealth management - and -
wholesale banking, where the Bank specializes in the provision of cash management,
trade, finance, treasury and custody services.

Standard Chartered was the first to issue global credit card in India, the first to issue

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Photocard, the first Picture Card and was the first credit card issuer to be awarded the
ISO 9002 certification.

Some other product innovations of Standard Chartered Bank in India include the
'Sapnay' credit card, the international debit card that provides free access to over 1500
Visa ATM's, a first in the banking industry, Mileage, an overdraft facility against the
security of a car and Smart Credit, a personal line of credit for salaried customers.

The name is derived from Standard & Chartered. Standard Bank of British South Africa
merged with Chartered Bank of India, Australia and China in 1969.

BAJAJ ALLIANCE LIFE INSURANCE COMPANY ( PARTNER OF STANDARD CHARTERED

BANK )

Bajaj Allianz Life Insurance Company was the No1. Pvt. Sector Life Insurance co. for the
FY 2005-06. With a pan India presence and over 900 + offices, Bajaj Allianz Life
Insurance has already has a customer base of close to 2 million customers. Bajaj Allianz
Life Insurance has developed insurance solutions that cater to every segment and age-
income profiles. For companies it provides comprehensive 'Employee Benefit Solutions'
(Group Term Life, EDLI, Gratuity, Super-annotation, Key man Insurance and more); for
the individual Invest Gain (a unique life insurance plan where sustenance of income is
combined in the same plan that also pays a lump sum), Cash Gain (Money Back), Child
Gain (Children's plan), Risk Care (Pure Term), Lifetime Care (whole life), Term Care
(term with return of premium), Saran Visitant (Retirement Plan), Protector (Mortgage
term insurance plan), New Unit Gain Super, New Family Gain, New Unit Gain Plus, New
Unit Gain, New Unit Gain Premier, New Unit Gain Easy Pension Plus, New Unit Gain Easy
Pension Plus – single premium. Currently Bajaj Allianz has a product portfolio of 30
products and more need-based products are in the pipeline.

It has followed Bancassurance Model which is the term used to describe the sale of
insurance products in a Bank. The word is a combination of "banque or bank" and
"assurance" signifying that both banking and insurance are provided by the same
corporate entity. The usage of the word picked up as banks and insurance companies
merged and banks sought to provide insurance, especially in markets that have been
liberalized recently. It is a controversial idea, and many feel it gives banks too great a
control over the financial industry.

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In this case Standard Chartered Bank is the distribution channel for Bajaj Allianz in India
for its ULIP Products.

COMPANY ANALYSIS:

STRENGTHS OF STANDARD CHARTERED BANK:

• Country’s largest international bank

• ANY BRANCH BANKING: Availability of any branch banking free of cost.
• Around 150 years of emerging market experience.
• CLIENT SOLUTIONS: Standard Chartered customizes Client Solutions for risk
management, yield enhancement, liquidity management and debt financing.
• HOME SAVER ACCOUNT: Along with the Home Loan, your will get a FREE current
bank account into which you may deposit your monthly salary.

STRENGHTS OF BAJAJ ALLIANZ

1. Bajaj Allianz Life Insurance declares Rs 63 cr (US $ 15.3 mn.) profit for FY 06-07.
2. Bajaj Allianz Life Insurance is the first large pvt. sector life insurance co. with a
pan India network and strong retail focus to declare substantial profits for the
financial year.
3. Bajaj Allianz Life is most profitable pvt. life insurer for 06-07.
4. Bajaj Allianz Life Insurance logs in Rs 4270 cr. (US $ 1.04 bn approx.) of new
business premium. For the first time private life insurance cos. have crossed the
US $ 1 bn new business in a FY.
5. Bajaj Allianz Life Insurance collected more new business premium in this one year
alone, then the total of last 5 year’s new business (Rs 3821 cr.).
6. More policies issued in this one year then the total policies issued in the last 5
years (1.4 million policies).
7. Over 70% of the business was regular premium for the FY and in the month of
March 07 over 80% of the business was regular premium.
8. Largest distribution network to reach the customers across the country with 2,
13,000 agents, 900 offices in 840 towns, 200 corporate agents & Banc assurance
partners.

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 9. The Company announced a healthy profit of Rs 63 cr. for the FY 2006-07 as per
the audited results. Excluding Participating funds profit the profit stands at Rs 54
Cr.

10.Building on number one position in previous FY 05-06 in new business the co. is
now no.1 in the Pvt. Sector in issuing largest number of Policies and becoming a
truly mass retail company.

WEAKNESSES OF BAJAJ ALLAINZ

1. The first weakness is that Bajaj have joined hands with Allianz as its partner,
which is a setback for most of the customers who want to buy ULIPs don’t have
full faith on the company.

2. They have to compete with the Government Companies like LIC and UTI who has
been very established in this field. So they will have to attain the same trust of the
public as it is in case of LIC and UTI.

3. The company is not doing any sort of work to make the general public aware
about the ULIP as a product as it is in case of Mutual Funds and other financial
Instruments. So, they will have to take a step forward to make the people aware
about ULIP as well as the Schemes which they are having.

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 PRODUCTS OFFERED BY STANDARD CHARTERED BANK

The Indian Banking system has seen sweeping changes over the years.
In the short span of time that they have been in existence, the leading new private
sector banks have truly revolutionized banking in India. There focus on technology and
customer convenience has brought about a paradigm shift in the banking business.
While Standard Chartered Bank today has built stable business that it believes will
deliver sustainable value to its stake holders, there are also many existing opportunities
for further growth.

The Bank’s operation can be subdivided into the following categories:

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 SAVING ACCOUNTS PURPOSE AND DETAIL

The Savings account is a transaction account wherein a deposit is placed with the
bank for an unspecified period of time. The depositor can withdraw the money
whenever required through any of the following means:
• Cheques transfer
• through an ATM (by ATM or ATM-cum-Debit cards),
• standing instructions,
• remittances,
• VISA Money transfer,
• IBFT or by making purchases made on a linked Debit Card at merchant
establishments.

Interest Paid:
• Interest on the account is determined in accordance with directives of the
Reserve Bank of India.
• The current rate is 3.5%.
• Interest is calculated on the Minimum Credit Balance between the close of
the business on the 10th and the last day of each calendar month.
• Interest is credited to the account every calendar quarter.

Generic Value Preposition :

• India’s leading international banking group

• Best international bank branch network
• 78 branches in 30 locations
• Extended banking hours, 365 day banking
• Fully functional phone banking facilities
• Any branch banking, anywhere in India
• Doorstep banking - bank from your home/office
• Internet banking
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 • IBFT - 15 locations, 253 banks
• Visa Money Transfer
• SCB Bill Pay facility

SAVING ACCOUNT PRODUCT OFFERING :

• AxcessPlus Savings Account
• SuperValue Savings Account
• Parivar Savings Account
• 2-in-1 AxcessPlus Account
• Debit Card
The main product of the bank is the Savings Accounts and its Insurance
products.
Accounts:
Savings Account

A detailed and complete analysis of the product available under Savings account is
presented below:

SAVINGS
ACCOUNT

AXCESS PLUS
SARAL ACCOUNT

PARIVAAR ACCOUNT
2-IN-1 ACCOUNT

SUPER VALUE

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1 .Axcess plus:

1. AXCESS PLUS:

One can get instant cash at over 13,000 ATMs across India and over 8, 10,000 ATMs
across the world through the Visa network. And get a globally valid Debit Card that lets
one shop at over 55,000 outlets in India and at over 12 million outlets across the world.

Eligibility:

• Individuals, Clubs, Associations, Trusts, HUFs, Minors

• Resident Indians and Foreign Nationals
• Can be opened in a single name or joint names (to a maximum of three
individuals)
• Initial Deposit - Minimum 10,000/-

Product: Entry level savings account

• Positioning: A savings account that gives you the
best access to your money
• Average Quarterly Balance: Rs. 10,000
• Non-maintenance charge of Rs 1653/- if AQB < Rs 5000
• Non-maintenance charge of Rs 827/- if >Rs 5000 but < Rs 10000
• Key features: *Free access to cash at 13,000 VISA ATMs,
using our debit card.
* First four cash withdrawal transactions in a month.

UNIQUE FEATURES:

• Free access to cash at over 13,000 VISA ATMs in India

• 4 cash withdrawals free every month from any VISA ATM
• No. of SCB ATM’s in India – 161
• Multi-city Cheque book @ Rs 248 / 25 leaves
• Globally valid Visa Electron debit card @ Rs 220 (1st year charges)
• Any Branch / Multi-city Banking
• 365 Branch Banking

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• 24 Hour Phone Banking
• Foreign Currency Transactions (at designated branches)
• Can be opened in a single name or joint names
(to a maximum of three individuals)

• Funds Transfer (Domestic and International)

• Remittances up to USD 50,000 or equivalent value @ Rs 551/-
( > USD 50,000 @ Rs 1102/-)
• Pay-Order / Demand Draft facility at nominal charges through SCB
and Correspondent Banks
• Free quarterly statements and local Cheque book facility if the AQB
is maintained
• Interbank fund transfer (IBFT) & Visa money transfer (VMT)
2. SUPER VALUE:

UNIQUE FEATURES :

• Free globally valid Debit-cum-ATM card

• Free Access to 6500 ATMs in India
• Free Doorstep Banking
• Free Payable at Par Cheque book/ account statements / DDs
• Free Bill Pay.
• Free Inter Bank Funds Transfer
• Free Foreign Inward Remittance Certificates

Other benefits of the Super Value account:

• Globally valid debit card – one can make purchases at over 12 million merchant
outlets and withdraw cash at over 810,000 ATMs worldwide using funds from your
account
• Multicity Banking - access the account even when one is out of town
• Facility of extended Banking hours at all the branches, and Speed Cheque Clearing
and Metro Clearing facilities
• 24-hour branches, 365-day branches available at select locations
• Phone banking - available 365 days a year on a 24-hour basis in the metros and
everyday of the week at other centers

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 • Internet banking - access and transaction of the accounts through the Internet
from any part of the world
• Free Investment Advisory Services to assist the customers in investing in a range
of mutual funds.
• Full suite of complimentary banking services including credit cards, loan products
sand capital market services

3. Parivaar Account:

Parivar is much more than a regular Savings Account. It allows you maintain your
individual identity while allowing you to tap your family's financial strength. It also offers
attractive insurance options to protect against unforeseen events and the facility of
Systematic Investment Plan (SIP), a unique long-term wealth-building tool.

UNIQUE FEATURES :

• One’s family can maintain individual savings accounts with the benefit of clubbing
balances in grouped accounts.
• Anytime, anywhere access to accounts through ATMs, Phone Banking and Internet
banking.
• Option of Systematic Investment Plan (SIP), a well known long term wealth
building tool that allows you to invest a fixed amount of money every month in
specific mutual funds. This comes with a direct debit facility and avoids the need
to remember dates and write Cheques every month.
• Globally valid ATM-cum-debit card can be used at 55,000 merchant outlets in
India and 12 million outlets worldwide.

4. Saral-No Frills Account:

You can now open an account with Standard Chartered Bank, with an average
quarterly balance of as low as Rs. 250. What’s more – you can avail of Anywhere
Banking, by which you can access your account from any branch of Standard
Chartered Bank in India.

UNIQUE FEATURES :

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 • Quarterly Average Balance, as low as Rs. 250.
• ATM card & Debit Card available..
• 4 free transactions per month at any Standard Chartered Bank channel (Internet
banking, Phone Banking, ATM & Branch).
• Anywhere banking – Access your account from any branch of Standard Chartered
Bank.
• Access to Phone Banking and Internet Banking
• Free Cheque deposit at any SCB Branch or ATM.

Eligibility criteria

This account is available to individual Resident Indian customers.

Account may be opened after being properly introduced in a manner approved by the
Bank.

5. 2-in-1 Accounts:

The 2-in-1 account gives you the facility of linking your fixed deposits with a savings or
current account. In case of any shortfall in the savings or current account, funds will be
automatically swept in from the linked fixed deposits, thus giving you a combination of
both liquidity and higher returns. In case you need to withdraw amounts in excess of
what is available in your savings or current account, we will break your deposit for the
exact amount you require. The rest of the deposit continues earning the original high
interest.

UNIQUE FEATURES :

• Earn fixed deposit interest rates

• Enjoy the flexibility of a Savings or a Current Account
• Free personalized Cheque book and Debit/ATM card
• Flexibility of withdrawing money whenever you need it. Deposit more money in
your account to earn a higher rate of interest by placing subsequent deposits
• Phone Banking for account related information at your fingertips

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GOLD CARD:

Privilege access to Airport Lounges:

The Standard Chartered Gold Card ensures your entry into exclusive airport lounges in
Delhi, Chennai, and Kolkata. Customer privileges also include complimentary non-
alcoholic beverages and snacks. The Gold card is given free with the Savings Account.

DEBIT CARDS:

Axcess Card:

One gets an instant cash at over 13000 ATMs across India and over 8,10,000 ATMs
across the world through the Visa network. One also gets a globally valid Debit Card that
lets one shop at over 55,000 outlets in India and at over 12 million outlets across the
world.

UNIQUE FEATURES :

• Free Axcess to cash anytime, anywhere, across India.

• Phone banking, Internet banking, Multicity banking, 365days branches, extended
banking hours, lockers facility and doorstep banking.
• One can even add-on for the loved ones with the joint account facility.
• Choice of photo, non-photo and picture cards.

Smart Fill

UNIQUE FEATURES :

• Earn reward points every time you use the card to make purchases ANYWHERE,
which you can then redeem for fuel at select Bharat Petroleum outlets.
• When you use the card to make purchases at select Bharat Petroleum outlets, you
don't have to pay the 2.5% surcharge levied on most credit or debit cards.
• Smart fill Debit Card is globally valid. It gives you access to 12 million merchant
establishments worldwide and over 55,000 in India
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 • You can access over 6500 ATMs in India for FREE* and over 810,000 ATMs
worldwide through the Visa ATM network
• The card gets you an exclusive discount of 5% at select In & Out stores at Bharat
Petroleum outlets, besides benefits at leading retail outlets and restaurants

Unparalleled Account Access

Unparalleled Cash Access:

• Free access to cash through over 13,000 Visa network

ATMs in over 100 cities in India
• Access to over 810,000 ATMs worldwide

Shopping Convenience

• Purchase goods & services using money in your account

• Accepted at over 65,000 merchant outlets in India
• over 12 million merchant outlets globally
• use your card at any merchant that displays the sign

ULIP (Unit Link Investmentp-\ Plan)

Capital Unit gain is a unit linked endowment regular premium plan that is designed to
suit all your insurance & investment needs.

UNIQUE FEATURES :

• You can choose any sum assured between minimum and maximum limits to match
your insurance needs.
• You have the option to choose from a host of additional rider benefits: UL
Accidental Death Benefit, UL Accidental Permanent Total/Partial Disability Benefit,
UL Critical Illness Benefit and UL Hospital Cash Benefit
• You can increase your savings by paying top up premiums.
• You get the same premium allocation for all policy years with higher allocation for
top up premiums.
• You can adopt your own investment strategy to grow the funds under your policy

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 • Choice of 5 investment funds with flexible investment management, you can
change
• Funds at any time and invest in the newer funds that would be introduced from
time to time.
• You can make partial withdrawals without any surrender charge.
Flexibility to increase / decrease the regular premiums.

Problem Definition:

The main problem faced by the company was that it had a very less customer base .The
bank’s own product had very less market as compare to its third party selling. The bank
does a third party selling for all the investment products.

So, the study which I had done has the following problems:

1. To identify critical factors that influences the buying behavior of individuals.

2. To know the customer acceptance of the services and Investment products like
ULIP’s of Standard chartered bank in Delhi and NCR regions.

3. To asses the problem volume of future sales.

4. To analyze the consumer perception about the quality of the product, so that the
steps can be taken to maximize the consumer satisfaction.

5. To find the position of Standard Chartered bank vis-à-vis it’s competitors.

6. To find the awareness regarding the ULIP’s.

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 7. To maintain and enhance the position further, the bank decided to have a thorough
insight into Its Insurance products. As this industry depends upon the Investor
perception of the product and their views towards the service provider, thus, the
feedbacks from the customers become all the more important.

OBJECTIVE OF THE STUDY

The Research project has been carried out to aid the Standard Chartered bank in
offering services that the customer needs and also to improve on some of the existing
services of the bank.

The objective of this project is to find out:

 The Savings Account potential in today’s market scenario as a whole.

 The Market Potential of Standard Chartered Bank’s Savings Account.
 Comparing other banks with Standard Chartered on various banking parameters.
 Trying to find out the various factors of saving account on which the bank
lags/leads.
 Finally to find the requirement of the customer by segmenting them on the basis
of:
o Age
o Sex
o Profession
o Monthly Income
 The ULIP, s (UNIT LINKED INVESTMENT PLANS) potential in today’s market
scenario as a whole.

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  The Market Potential of Standard Chartered Bank’s ULIP’s.
 Comparing other banks with Standard Chartered on various banking parameters.
 Trying to find out the various factors of ULIP’s on which the bank lags/leads.
 Finally to find the requirement of the customer by segmenting them on the basis
of:
 Age
 Sex
 Profession
 Monthly Income

Analyzing the data as per the given objectives and finally reaching a conclusion and the
factors that the bank should consider in case of improving the savings account.

SCOPE

The Scope of the Research study would include the Geographic & Demographic region of
Delhi & NCR.

The Sample of 100 has been taken from areas such as Commercial Complex & Offices
in Connaught Place, Nehru place, Gurgaon ,Greater Noida & Noida. These areas have
been identified to give the actual picture of the Banking behavior and Investment
patterns of the Office goers who invest in such Instruments.

PURPOSE OF THE STUDY:

To maintain and enhance the position further, the bank decided to have a thorough
insight into the Savings account and ULIP’s. As it is service industry, which depends
upon the customer perception of the product conception and their views towards the

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service provider, thus ,the feedback from the customers thus become s all the more
important.

The purpose of the undergone study is to study the Savings Account and ULIP services
and its rates of different banks and evaluate the competitive position of Standard
chartered so as to suggest ways to increase it’s market share.

The Bank wants to strengthen its customer base by gathering information about the
market scenario for Savings Accounts and ULIP’s. Standard Chartered Bank needs to
know about the competitors’ moves and the customers’ preference in this sector.

RESEARCH METHODOLOGY

Bank basically means business and in business collection of raw data allows the
managers to see the real scenario and then take a decision as per the data obtained.
There are several implications in this statement:
• The bank gets a clear picture of the ULIP Market scenario.
• They can examine the available information in the form of data to make a decision
• They can even get a clear picture of the scenario or potential of the Savings
Account and ULIP’s of their banks in comparison to other banks.
• The information can only be gathered by data collection and then analyzing the
available data.

Therefore, it can be said that the data collection is an important part of the
project.

Data
Raw numbers Information

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 The projected objectives were considered and as per the requirement a market survey
was done.

Procedure:

The procedure that followed can be enlisted as below:

• Reading about the product

• Deciding on the objective to proceed.
• Developing Survey instruments
• Conducting personal interviews of different age-groups, sex, monthly income and
occupation through a Questionnaire.
• Finally analyzing the data of various Geographic areas and trying to study with the
other players.

Process adopted:

1. Gaining knowledge about the product:

Reading about the product was the first step undertaken. This gave not only in
depth knowledge about what is been offered by other players but also proved useful
while developing the questionnaire.

2. Steps in the Development of the Survey Instruments

The main instruments required for survey was a well-developed questionnaire.
The questionnaire development took place in a series of steps as described below:

Step Research objectives are being transformed into

1 information objectives.

Step The Appropriate data collection methods have been

2 determined

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Step The information required by each objective is being
3 determined.

Step Specific Questions/Scale Measurement format is

4 developed.

Question/Scale Measurements is being evaluated.

Step
5

Research objectives are being transformed into

Step
information objectives.
6

Step The number of information needed is being

7 determined.

Step The questionnaire and layout is being evaluated.

8

Step Revise the questionnaire layout if needed.

9

Step The Questionnaire format is being finalized.

10

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 3. Customer Survey:

The people play an important part as a clear perception of people about the
product can be estimated and known. Studying the need levels of the people
regarding the Insurance product can be observed. It was very useful in knowing
about the requirements of the people.

4. Referred to brochures and websites of competitors:

To understand the competitors product brochures and websites of various players

were referred and a competitive analogy of all the information is been made.

Research Design:
A two stage Research was conducted:

1. Secondary Research:
Data was collected from websites and catalogues to understand the product of the
different players

2. Primary Research:
A Primary Research was conducted:
The questionnaire was prepared for the companies and following areas covered:
• competing banks
• Features offered by different banks
• Consumer profile
• Satisfaction level
• Reasons for their invesment
• Desirable features of the product.

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Sampling Plan:
Elements:
The target population of the study included the general population above the age of
21 yrs. It will further be based on Stratified Random Sampling.

Sample size: 100 people.

MARKET PROFILE-DELHI
Brief Demography of the City

PARAMETERS UNIT DESCRIPTION

Population Lac./Crores 15,412,000
Area Sq km 1,483 sq km 2
Literacy Rate % 81.82 %
Literacy Rate –
% 83.63%
Male
Literacy Rate –
% 60.28%
Female

Delhi is the capital Of India and these days its hub for every industry. Delhi is one of the
oldest continually inhabited cities in the world. Having been the capital of several
empires in ancient India, Delhi was a major city in the old trade routes from northwest
India to the Gangetic Plains. Delhi is an important commercial center in South Asia.
Delhi has a per capita income of 53,976 INR which is around 2.5 times of the national
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average. Delhi's workforce constitutes 32.82% of the population showing an increase of
52.52% between 1991 and 2001. Delhi's service sector has expanded due in part to the
large skilled English-speaking workforce that has attracted many multinational
companies. Key service industries include information technology, telecommunications,
hotels, banking, media and tourism. Delhi's manufacturing industry has also grown
considerably as many consumer goods industries have established manufacturing units
and headquarters in and around Delhi. Delhi's large consumer market, coupled with the
easy availability of skilled labour, has attracted foreign investment in Delhi.

General Characteristics of the Markets

 Delhi is a densely populated medium sized city
 Has a good youth population by virtue of the presence of several industries and
other offices.
 But there are only a few mid-sized markets and only few potential outlets
 The markets are modern and developed.
 There is sufficient awareness among consumers regarding new innovations in the
field of commerce and industry.
 Purchasing power of the territory is also good
 The markets are small but moderately good.

MARKET PROFILE-GURGAON

Brief Demography of the City

PARAMETERS UNIT DESCRIPTION

Geographical Area Sq. Km. 220
Population Lac.& Crore 5,73,542
Population Density Per Sq. Km. 331
77 %
Literacy Rate % Population
Literate.

Gurgaon is a massive economic engine for Haryana and over 50% of Haryana's income
tax comes from Gurgaon. So, there is a great potential for ULIPs

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General Characteristics of the Markets:

 Gurgaon is a huge market in terms of size and has around 25 market places
 Few markets are pro middle class and few exclusively cater to the elite class
 This city is an ideal combination of traditional culture and modernization
 It has got a high purchasing power
 Youth and old age person are found more in this city.
 Mostly all the call centres of big MNCs are in this city.

MARKET PROFILE-NOIDA

Brief Demography of the City

PARAMETERS UNIT DESCRIPTION

Population Lac./Crores 293,908
Area Sq km 203.16sq km 2
Literacy Rate % 68 %
Literacy Rate – Male % 74%
Literacy Rate –
% 61%
Female

New Okhla Industrial Development Authority is a department of the government of Uttar

Pradesh in Gautam Buddha Nagar District, India. Lately NOIDA has become a hub for
multinational firms outsourcing IT services. Many large Software and BPO companies
have their offices in the city. Many other companies have their Indian branch offices in
Noida, because of the Special Economic Zone, the better, suburbian atmosphere in
NOIDA and its closeness to Delhi.

General Characteristics of the Markets

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  The city makes for a good market place but the mostly there are small, crowded,
traditional markets
 There are many offices and many of the persons are working in these offices so
this city has good potential for the product placement.
 The persons here are much aware about the ULIPs than any other city.
 But there are only a few mid-sized markets
 The city and its consumers are growing up because of the growing industry.

MARKET PROFILE-GREATER NOIDA

Brief Demography of the City

PARAMETERS UNIT DESCRIPTION

Population Lac./Crores 1,73,542
Area Sq km 173.16sq km 2
Literacy Rate % 68 %
Literacy Rate – Male % 74%
Literacy Rate –
% 61%
Female

Greater Noida is home to a number of Indian and foreign MNCs like HCL Technologies
and STMicroelectronics. It is also becoming a manufacturing hub with Companies like
Honda, LG, Moser Baer, Yamaha setting up their manufacturing facilities over here. You
can get the complete information about Greater Noida in www.greaternoidaplus.com.
There are a significant number of private educational institutions as well.

Due to the presence of a large number of educational institutions, in the knowledge park
campus is also one of the largest educational hubs of the India.

General Characteristics of the Markets

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  There are many offices and many of the persons are working in these offices so
this city has good potential for the product placement.
 The persons here are much aware about the ULIPs than any other city.
 But there are only a few mid-sized markets.
 The city and its consumers are growing up because of the growing industry.

PRIMARY DATA COLLECTION METHOD

Data Collection Plan:

The first of Research consisted of secondary data search from the following sources:
• Catalogues
• Websites
In this, information about different players, their features were collected.

For the conclusive research, questionnaires were developed on the basis of secondary
data to gather information on the research objective.
A pilot study was conducted to test these questionnaires. In this sample of 10 people
was picked up from the target population on convenience basis, so as to determine the
limitation and deficiencies in the questionnaires.

The final draft of the questionnaire (see Appendix) was then prepared on the basis of
the observations from the pilot study. These were then finally filled by 280 consumers,
for the conclusive study.
Finally the data collected was fed into the data analysis software- SPSS, to be analyzed
using statistical techniques like: frequencies, means, Z-tests, t-tests, Chi square
distribution, correlation of different variables, cross tabs etc.

Types of Primary Data collected:

• Socioeconomic Characteristics:

socioeconomic characteristics are sometimes called “states of being” in that they

represent the type of people. The factors on which we are working are age, sex and
occupation. Monthly income is also an important parameter but it is difficult to
verify. Although the amount of money that an individual earns in a month is an
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 absolute, not a relative quantity but it is a sensitive topic in our society and it is
difficult to determine.

• Attitudes/Opinions:

Through the questionnaire we have tried to get hold of individual’s preference,

inclination and requirement from the products that the bank delivers to its
Investors. Attitude is an important notion in the marketing literature, since it is
generally thought that the attitudes are related to the behavior of individual.

• Awareness/Knowledge:

They are used in marketing research refers to what respondents do or do not

know about the product.

• Intentions:

A person’s intentions refer to the individual’s anticipated or planned behavior. We

have tried to find out through the collected primary data the intentions of the
people in general about the product called ULIP. In this project we have
segregated the people as per their intentions about the ULIP of Standard
Chartered. The intentions gathered are divided into the following groups:

1. Definitely would like to take ULIP of Standard Chartered

2. Probably would like to take ULIP of Standard Chartered
3. Undecided
4. Probably would not like to take ULIP of Standard Chartered
5. Definitely would not like to take ULIP of Standard Chartered

• Motivation:

Through the questionnaire we have tried to find the hidden need or want of an
individual and have tried to find if these people can be tapped as the potential
customer for Standard Chartered.

• Behavior:

Behavior concerns what subjects have done or are doing. Through the
questionnaire we have tried to find out the behavior of the individuals
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 regarding the product and their responses. If the responses are favorable
then the person can be said to be our potential customer. The primary data
serves as an important tool to measure the behavioral trend of the customer.
It helps in answering some of the vital Questions.

Thus, it helps to draw a comparison between the Purchase and the observed
behavior of the individuals.

Obtaining the Primary Data:

The data collection was primarily done through communication. Communication

involves questioning respondents to secure the desired information, using a data
collection instrument called questionnaire. The questions were in writing and so
were the responses.

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 Versatility:

It is the ability of a technique to collect the information on the many types of primary
data of interest to marketers. It has also been found that some of the people do not
answer truthfully to all the questions especially in the case of the personal details.

FINDINGS OF THE STUDY

GENERAL FINDINGS

• GENDERWISE DISTRIBUTION

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Among the 100 respondents, females represented 28% only. The reason being females
are generally less active and aware about banking services and investment
options.Moreover, during the survey it was revealed that females are less responsive for
such surveys.

• AGEWISE DISTRIBUTION

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Among the 100 respondents, maximum respondents are from age group 21-30yrs they
cover around 48% of total population.This is because people in this age group are more
responsive.

• OCCUPATION WISE:

In total 100 respondents 48% are in private service and 20% of them are in business,
th24% of the total pie is owned by the government servant and professional hold the
least i.e 8% of the total sample.

• IMPORTANT FACTORS CONSIDERED FOR SAVING ACCOUNT BY CUSTOMERS:

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People in general look for quality service from bank and then for a nearby location.
Banking hours is also one of the important factor as maximum banks have increased
there banking hours from 7 -8 hours to 11- 12 hours.

• CUSTOMER FOR VARIOUS BANKS :

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The survey shows that the ICICI bank is the most preferred bank ,covering 28% of the
the total population. The next preferred bank is SBI (21%) and the third most preferred
bank is HDFC bank. Standard Chartered bank is preferred by only 7 % of the
respondents.The reason for Standard Chartered being the less preferred bank is that
they are focusing on only premimum segment and average person are still unaware
about the standard chartered bank.Therefore they hesitate to deal with Standard
Charterd Bank.

• MINIMUM BALANCE MAINTAINED IN SAVING ACCOUNT BY CUSTOMERS:

The banking services that are availed by the people at large is ATM. Even with up
gradation of technology people prefer using Internet / Phone banking. Doorstep
service has minimum effect, as people do not rely on handing their money to people
rather they feel much more secured in transacting or transferring their money
through any Internet media.

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• SATISFACTION LEVEL OF SAMPLE :

In general it is seen that people are satisfied with the services of the bank. Very few
are not satisfied with the banking services provided by their bank.

• PREFERENCE OF MONEY TRANSACTION :

People in general do not like doing money transactions in Cash, as it is not so safe
as also sometimes there are problems with the notes. Majority of people prefer
Cheque, Credit card and Debit card usage as it is also easy to carry and it is more
safe.

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• AWARENESS ABOUT THE PRODUCTS OF STANDARD CHARTERED BANK:

The Standard Chartered Bank has very poor market coverage and very few people know
about the products. The market awareness and share is minimum for saving
account products.

Thus I see that maximum people are not aware about the products offered by
standard chartered bank as well as a major amount of people are not even aware or
have not even heard of benefits of the PRODUCTS.so the bank should try to make
people aware about them.

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• RISK PREFERNCE OF SAMPLE :

Moderate risk takers are 50%, this shows that they benefit from the Bull Run as well as
safe capital.

26% represents low risk takers which are due to their old fixated mindset.

High risk takers are mostly those in Business who are willing to go an extra mile for
Returns. They hold 16% market share.

Other 8% with no risk appetite wants to play really safe

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• DISTRIBUTION OF SAMPLE IN ACCORDANCE WITH THE PREFERNCE FOR
TIME HORIZON OF INVESTMENT

Only 2% of the total respondents wants to invest for the period of 10-15 yrs.
Respondents belong to new breed who do not want to block their money that long.

Mostly (50%) they invest for 4-7 yrs to get maximum benefits. It is here that they
double their amount paid on required first 3 premiums, even after not paying any more
premiums.

Those investing for just 3 yrs want to reap benefits from current Bull Run.
Investors for 7-10 yrs (8%) have to some obligation materializing in that maturity
period like daughter marriage etc.

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• AWARENESS ABOUT ULIPs:

Out of the sample size of 100, 40% of the respondents are unaware about ULIP.
It is here that the potential of ULIP needs to be tapped. They are ready investors who
know only traditional avenues of Investment. Making them informed would open the
Investments into this Instrument.

• GENDERWISE AWARNESS OF ULIPS

Males are comparatively more aware about ULIP as an Investment option.Females in

India are underinsured, they think about Investment mostly into Bullion. A best solution
would be to pass information to the working women class about the product.

Page 55 of 103
• INVESTMENT IN ULIPS :

In 100 respondents only 40% of them have invested in ULIPS. This shows that there are
some of the people who are though aware of the ULIPS but are not interested in making
investment in them. These people should also be taken into consideration to increase
the market share of the bank.

• INTERESTED IN INVESTING IN ULIPS:

Survey shows that only 16% of the total respondents want to invest in ULIPS.T his
shows that ULIP is not popular among the people. One of the reasons for this is
unawareness about ULIPS. The solution to increase the market share and popularity of
the ULIPS is to make people informed about the benefits of the ULIPS.

Page 56 of 103
 TWO SCALE ANALYSIS:

• RELATION BETWEEN INCOME & AGE GROUP (21-30 YRS):

Respondents are mostly from above 2 lacks income bracket. They are those who have
joined Private Service shortly i.e. have just started earning or have their own business.
They have age by their side with risk taking ability, so besides ULIP they have other
Investment avenues also with them like Mutual Funds, Stock Market etc. The important
reason for their preference toward ULIPs is tax benefit.

Up to 2 lacks income level represents mostly, who are in initial stages of their jobs and
the reason for their interest in ULIPS is income growth.

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• RELATION BETWEEN INCOME & AGE GROUP (31-40 YRS):

For age group 31-40, majority of respondents have income between 3-5 lacks or above
5 lacks. This age group comprises of people who have long term responsibilities, these
are the people who are interested in investment in for their future security as well as
income group. This age group should be focused continuously and sincerely.

Page 58 of 103
• RELATION BETWEEN INCOME LEVEL & AGE GROUP (41-50 YRS) :

In age group 41-50 yrs majority of people i.e around 45% have income in between 2-3
lacks. The next income groups are people who are earning in between 3-5 lacks or
above 5 lacks. Only 11% respondents are earning up to 2 lacks.

• RELATION BETWEEN INCOME & AGE GROUP (ABOVE 50 YRS) :

Page 59 of 103
Respondents from age group above 50 yrs are majorly from the income group 3-5 lacks.
In this age category no one of the total respondents are earning above 5 lacks. This is
because in this age group majority of them are government employee. Government
employees have low income and they are not interested in risky investment.

RELATION BETWEEN RISK PREFERENCE & AGE GROUP (21-30YRS) :

One thing is quiet clear that low risk takers are in minority, age has very little
significance.

Survey shows that respondents prefer ULIP with a motive to have better returns.
High risk takers are willing to experiment with returns that accrue from the Market Bull
run.

Moderate risk takers want to play safe with a balanced fund allocation in their
Investment basket.
No risk takers have altogether a new theory. They invest into it mostly to have tax
rebate.

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• RELATION BETWEEN RISK PREFERNCE & AGE GROUP (31-40 YRS) :

With this age Investors are more sensitive to risk, so they tends to be moderately risk
skewed.
But still high risk takers are there who want Income growth & other benefits.
Low & no risk takers are still in minority.

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Same trend is followed here also but the only difference is that No risk takers have
increased from last category and high risk taker are less because there age don’t allow
them to go for risky ventures.
The reason is attributed to fact that with this age they want safety for their money due
to family obligations arising.

• RELATION BETWEEN RISK PREFERENCE & AGE GROUP (ABOVE 50 YRS):

Same applies to those above 50 yrs, but risk taking ability has reduced by a great
extent. They do not want risk over their hard earned money, so they want to play safe.
Therefore they prefer low risk investment.

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• RELATION BETWEEN RISK PREFERENCE &OCCUPATION (BUSINESS)

Survey shows that the business class people are more ready to take risk; around 60 %
of business people from the total sample population have preference for high risk and
high return investment. Therefore for risky investment schemes business people should
be focussed.

RELATION BETWEEN RISK PREFERNCE & OCCUPATION (PRIVATE SERVICE):

Page 63 of 103
Resondents who are in private service are moderate risk taker.They invest for their
income growth but their risk apetite is very low , only 8% of the respondents from
private service are ready to go for high risk ventures.

• RELATION BETWEEN RISKPREFERENCE & OCCUPATION ( GOVERNMENT

SERVICE)

Survey shows that government employees are totally different to high risk, moreover
they are interested in investing on those instruments which have low risk or no risk at
all.

Page 64 of 103
• RELATION BETWEEN RISK PREFERENCE & OCCUPATION ( PROFESSION):

Survey shows that professional are also more inclined towards those instruments which
have moderate risk or low risk.They neither want to go for high risk nor for no risk
ventures.

• RELATION BETWEEN RISK PREFERENCE & GENDER :

Page 65 of 103
Survey shows that althogh most of the respondents prefer moderate risk and moderate
return strategy but in that too females are less prone to risky investments. Only 7 % of
total female respondents are interested to go for high risk investment.therefore , ulips
would be more popular among male as compared to female.

• VARIOUS AVENUES OF INVESTMENT :

Survey shows that FDs are most popular among the respondents, around 24% of the
total sample population invest in them. In case of ULIPs, only 11% of the total
respondents are investing, and that investment is also due to its tax benefit.

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• REASONS FOR INVESTMENT :

Survey shows that income growth is the prime reason for the investment, 44% of the
respondents invest for income growth, the second next reason for the investment is tax
rebate, comprises of 33% of the total respondents. Thus, these two benefits can act as
strong motivator for attracting people for investment for ULIPs.

• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (21-30 YRS) :

Page 67 of 103
It is in time frame of 4-7 yrs that respondents feel that their Investment would double
at the prevalent rate of return.
Suppose that an investor invests Rs. 1 lack p.a. as premium at a rate of return of 20%
for 3 yrs, then his total premium paid gets doubled in almost five & half yrs.
Those investing for less than 3 yrs wants just Tax rebate.
Investors investing for 7-10 yrs want Income growth besides other benefits.

• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (31-40 YRS) :

Respondents here are serious Investors who view ULIP as one of the potential
Investment option. But a little has changed from the last graphical presentation as
investors still think that 4-7 yrs is the best time frame for Investment.

Investors investing below 3 yrs have reduced. They are usually small Income earners
who want more than one benifts.7-10 yrs bracket are those with family obligations.

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• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (41-50 YRS):

Same trend is followed here .Only 11% of the total Respondents at this age want to
block their money for time period more than 10-15 yrs.

• RELATIONSHIP BETWEEN TIME HORIZON & AGE GROUP (>50 YRS):

Page 69 of 103
Rest of the time frame categories has followed the same trend. Same trend is followed
here with a little difference that is there being no investors over 7 yrs time frame.
Respondents at this age do not want to block their money for time period more than 7
yrs.

• RELATION BETWEEN INCOME LEVEL& TIME HORIZON ( UPTO 3YRS) :

Those with Income level 2-3 lacks & 3-5 lacks usually invest for time frame less than 3
yrs because they are mostly young working executive class who want Tax rebate at one
end & also do not want to block their money for long.25% of total respondents earning
more than 5 lacks invest for less than 3yrs.

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• RELATION BETWEEN INCOME LEVEL & TIME HORIZON ( 4-7 YRS) :

Income level above 5 lacs is the dominant category in this graphical representation. Tax
rebate & Income growth is their requirement.

• RELATION BETWEEN INCOME LEVEL & TIME HORIZON (7-10 YRS)

Page 71 of 103
Same trend is followed here also.
Those upto 2 lacs Income level wants their child’s marriage as the main benefit.

5-7 lacs Income bracket wants continued tax rebate &

2-5 lacs Income bracket wants bundle of all possible benefits.

• RELATION BETWEEN INCOME LEVEL & TIME HORIZON (10-15 YRS) :

Those upto 2 lacs want pension security.

For 2-5 lacs, respondents want child education as chief benefit.
Those above 5 lacs wants continued Income growth spread over given time frame.

Page 72 of 103
• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL (UPTO 2 LACS):

It includes businessmen and Private servicemen.

34% of the samples in this category are moderate risk takers. They are usually over 30
yrs & average Investment horizon being above 3 yrs.

There are no high risk takers respondents in this income group; as their income is less.
The low risk takers want maximum safety for their Investment so they prefer only fund
allocation into debt & Govt. bonds with mostly time frame less than 3 yrs.

There is a strange behavior among No risk takers i.e. they are young with flavor for
Income growth but are extremely risk averse.

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• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL (2- 3 LACS):

Strangely in this block also respondents seem risk averse as they demand no risk.
But there is also a large representation of moderate risk takers who want wholesome
benefits such as 2 in 1, Tax rebate, Income growth etc.

Tax rebate seems to be the ultimate pick for the High risk seekers. Their behavior is
predictable as they are either in Business or Private Service. They go beyond traditional
players & rely on new players in market.

• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL ( 3-5 LACS)

Page 74 of 103
Around 35% of total population is moderate risk takers. They are either in Business or
Private Service who can park in funds for more than 5 yrs. They usually go for big size
Insurance cover. ULIP is an ideal Investment option for them because they wanted to
stay afloat for long with maximum of benefits.
High risk takers also follow the same trend demanding Tax rebate as the major
incentive.
Low risk takers are 41%, and they are investors who only want traditional Insurance
cover. This class consist only Private servicemen.

• RELATION BETWEEN RISK PREFERENCE & INCOME LEVEL ( ABOVE 5 LACS):

High risk takers at this Income level want Income growth over continuous period of
time. So they invest for long time.
Respondents over 40 yrs stay on either No risk or Low risk zone only.

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• AGEWISE PREFERNCE OF THE REASONS FOR THE INVESTMENT :

In the age group 21-30 yrs, most of the respondents want Tax rebate & Income
growth.Other benefits come second in importance.

Age group 31-40 yrs prefer besides above two also child’s education. This shows that
investors in this age group are more family oriented & value ULIP investment crucial for
social obligations. For them pension is least fanciful. This age group is well dispersed
(excluding pension).

Age group 41-50 yrs also prefers Tax rebate & Income growth with little of all others
also as per respondent’s preference of benefits.
Respondents over 50 yrs stick to tax rebate or pension and child education as benefit
alsoshows family responsibility as a major motivator for investment

Page 76 of 103
• INCOME WISE PREFERENCE OF THE REASONS FOR INVESTMENT :

For Income level upto 2 lacs, Income growth is of paramount importance among all
benefits that ULIP offers. They are mostly young people. People from Income level 2-3
lacs gives importance to Tax rebate and income growth. They come mostly from Private
Service & Business category. For them pension is still the least fanciful benefit besides
all others.

Income level 3-5 lacs are also tax rebate and income growth mongers Rest benefits are
given less of importance.

Income level above 5 lacs also follow the same psyche of Income growth & Tax rebate.
Moreover they also invest for child education.

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 ESTIMATION OF MARKET POTENTIAL USING Z-TEST

In order to estimate the population proportion who were interested in ULIP I am using
Z-test and during this I have taken a confidence level of 95% to determine the
population proportion. I have taken an assumption in this also because it was very
difficult for me to take the original data from the new census report i.e. many of the
income information is included in that report and also the population proportion which I
am calculating is for the whole of population but our sample starts from 20 years so
these calculations are according to whole population.

P = Population Proportion
p^= Sample Proportion=%age who are interested
q^= (1-p^)
n= Size of Sample
Confidence Level =95%
Z at 95% = 1.96
By Using the Formula for Z-Test i.e.

p^ q^
P = p^ ± Z
n

P^ = % age who are interested =40/100=40

q^ = 60
z= 1.96
40 * 60
p= 40 ±1.96
100

= 40 1.96
= 40 1.96 4.9
=40
P = {30.39%, 49.60%}

Therefore ULIP can be found popular among 30.39 % to 49.60 % of population above
21 years of age and above 2 lacs income group in NCR region.

Page 78 of 103
 CONCLUSION ABOUT MARKET POTENTIAL OF ULIPS

1. Trust needs to be developed among the customers both as far as the ULIP as a
product is concerned and also regarding private players (Standard Chartered)
particularly in our study.
2. Some respondents despite of knowing about ULIP were hesitant to talk on it
because they were not too confident about their knowledge. This very fact
completely declines the concept of providing switches as a lucrative feature in
ULIP (which is done by most of the companies). The reason is that very rarely
people have the ability or time to use these features.
3. The important facts which we could conclude from our data regarding the buying
behavior of individuals are that people give maximum importance to the tax
benefit that they receive after investing in the unit linked insurance plan .Further
the next most attractive benefit that people look forward to most as per our
sample is that of income growth. In fact most of the unmarried chunk of our
population who has no liabilities like child education or marriage goes in for a
ULIP product just to multiply the money in a couple of years. Other benefits are
important as well but these two take away most of the attention.

4. Regarding the acceptance of ULIP as a product over other investments it is

analyzed that though a lot of our sample population was aware about it and had
invested in it but still a lot of them (including Females) wanted to invest in it but
were confused regarding other options like mutual funds. So a lack of public
awareness was encountered.

5. Another important finding was that time horizon was one of the factors of concern
while investing in ULIP and as per the analysis of the questionnaire we found that
a large proportion of our sample was convenient with the time period of 4-7 years
and then others were in favor of a period not beyond 3 years. This implies that
very less number of people were comfortable with long time horizons.

6. Another very interesting finding from our data is that when we talk about risk as
an investment criterion then the female population which already has or is
interested in investing would favor either no risk at all or low risk and low gain.
Whereas the customers’ businessmen by occupation and specifically from age
group 21- 30 would favor either moderate risk and moderate gain or rather go for
a high risk and high gain strategy. This result came completely in line with our
expectations.

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7. Considering the market share of the leading players it was found that LIC rules
when it comes to an age group of 50 plus due to the credibility and trust it has
gained in all past years. Where the other age groups prefer to explore the leading
private players where in our sample Standard Chartered (Bajaj Allianz) and ICICI
prudential make a clean sweep. Other banks like HDFC were found with a limited
proportion only according to our findings.

8. Our analysis shows that though the product has been able to cater to a number of
benefits but still a lot of brand awareness is lacking and LIC is posing the biggest
threat followed by SBI life to the private players.

Page 80 of 103
 COMPETITIVE ANALYSIS OF THE BANKS

The savings account market is marked by heavy competition, with the major players in
the market being the private and the multinational banks. These banks have off lately
started aggressive marketing of their product and provide a variety of features to their
customers.
For both the client and the bank, the opening up of salary account creates a win-win
situation, wherein the bank gets more business because of the accounts that get opened
and the customer gets to keep their money in a safe and risk-free.

Some of the major benefits for the customers for opening up a savings account are as
under: -

• Multi-location: With the wide reach of the Banks, the customer gets an easy
access throughout the country with the help of the ATM services..
• Safety: A lot of safety is maintained as consumer can carry a credit or debit card
instead of the cash.
• Easy Payment: It serves as a medium of easy payment as utility bill payment
can be done through it.
• Loans: Easy loans for vehicles and other special purpose becomes available to the
customer.

The major competitors of Standard Chartered Bank in the Savings account market are:-
• ICICI Bank.
• HDFC Bank.
• ABN AMRO Bank.
• Kotak Mahindra Bank .

From the data collected by us of Savings Bank account of different banks, we can
observe that there is very less differentiation as far as the facility provided by the banks
on SB A/c are concerned. Almost all the bank provide similar facility but there are few
factors on which Standard Chartered bank has the edge over other banks i.e. in their
Super value A/c they provide both insurance cover and special loan.
When we analyze the charges associated with the opening and operation of the SB A/c,
all the banks have almost charge same for regular account except few key charges
which we have analyzed separately:

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 • Debit Card Cost (annually) :

Here we can the charges of Standard Chartered for Debit card is on the higher side as
compare to other banks and also they have debit card (Smart fill), which costs 400/-.
The cost for replacement of debit card is high in case of every bank except Kotak
Mahindra

• Interbank Transaction Cost:

In Interbank transaction cost Standard Chartered certainly has the edge over other
banks, here every bank charges transaction cost except Standard Chartered which is a
very important factor these day

Page 82 of 103
 • Minimum Quarterly Average Balance

This is calculated by dividing total balance maintained over the quarter divided by 90
days and this value of any account should be equal to or more than QAB as prescribed
by the bank. Here HSBC and ABN Amro have their QAB very high. These QABs are less
in case of no frills accounts.

• Cheque return Charges (Outward <100000/-)

When Cheque is returned due to in availability of cash in issuer A/c the bank charges
that A/c holder with a penalty. ICICI and HDFC charges are high in this case.

Page 83 of 103
Apart from these factors there some factors that have some significance are access of
debit card from different bank’s ATM, charges on Internet banking and monthly and
duplicate statement charges. Kotak charges very less to its customer in these aspects.

The charges for Standard Chartered are high but in Supervalue most of the charges are
eliminated and you can avail greater facility

Standard Chartered Bank Vs. its major competitors :

The different services charges of the banks have been attached in
Appendix-3 & Appendix-4 of the project. The competitive analysis of the banks
can be done on the basis of the data attached.

Page 84 of 103
 SWOT Analysis OF Standard Chartered Bank

WEAKNESSES
STRENGTHS

• Strong Brand Image • Rigid Eligibility Criteria

• Dedicated sales team • Weak Customer
• Value added services. Relations Management
• Centralized Structure
• High Average Quarterly
Balance
• Limited number of ATM’s
and Branches. Poor
network.

OPPORTUNITIES THREATS

• Presence of very strong

competitors.
• Large Untapped Market.
• Aggressive marketing by
• Distinguishable product (like
competitors.
Parivar Account).
• Various investment Schemes
with high returns.

Page 85 of 103
 CONCLUSIONS

Competitor’s Analysis

1. Almost all the Banks offer similar features and facilities with their Savings
accounts, therefore for existing customers of Savings Account of any Bank to shift
to another Bank; this is very rarely the criteria or reason.

2. The level of service in terms of delivering whatever is promised, fast response in

case of problems, is the most important benefit that the customers seek, from the
Bank they have a Savings Account with.

3. Network reach and visibility of a Bank is a very important criterion for the
customer while opening a Savings account. We can also conclude from our
analysis that network reach in terms of Branches and ATMs is directly proportional
to the market share in case of Private Players.

4. In case of a new customer, if a bank approaches it first for opening a Savings

account with them, then there is a good chance for the bank of getting many
future businesses from the deal.

5. Aggressive Marketing is the key to increasing the market share in this area, since
the market has a lot of potential both in terms of untapped market .

Page 86 of 103
RECOMMENDATIONS FOR INCREASING MARKET SHARE OF
STANDARD CHARTERED BANK

1. The bank should try to improve the ATM Services, as it is one of the major reasons
for dissatisfaction among the customers as majority of those who were dissatisfied
where on account of non availability of cash in ATM,s and limited number of
ATM’s.

2. The bank should also target the females for its saving Account especially parivar
accounts.

3. The bank should increase the number of ATM’s in the country as people feel that
the bank has very few ATM’s in the country.

4. The bank needs to make people aware about there products and the basic
benefits they can derive out of it. And also the differential features of its savings
account as compared to other banks.70% of the people did not even know about
the concept, benefits and features of its saving accounts.

5. Also it was found in our analysis that the customers don’t really mind keeping a
high balance in there savings account and the bank should tap this fact by keeping
a higher AQB and reduce the charges of different services which customers
have a problem paying for. Only around 10% of the customers considered it to be
an important issue for deciding on there banking preferences.

6. It was also found in our analysis that ATM is the most preferred method of
banking of most customers and the preference for credit cards is low thus the
bank should use this fact by giving free ATM cards with its savings account
instead of the not used credit card which customers consider to be unwanted.
More than 50% of the customers banked through the ATM’s.

Page 87 of 103
7. The bank should target individuals in the age group of 25+ for whom maintenance
of the AQB is not a problem and further increase the number of free inter bank
ATM transactions from 4 to 6 as the customer rate this highly important a
factor while opening a savings account.

8. The customer satisfaction levels are the lowest in Standard chartered(only around
25%of its existing customers were satisfied) among all banks so the bank needs
to work on its general image as such by promoting itself as a bank which puts
“customers first” and not as the highest profit making bank.

9. When we talk about the banking preferences of businessmen then they are looking
for nation wide service and wide network of ATMs because of the nature of there
work thus the bank should work on this fact by making its presence felt on a
national level.

10. One very shocking result which has come out of our analysis is that as the income
of the customer rises his preference for our bank falls, which is contrary to the
bank’s objective thus the bank needs to check on this result and work on factors
responsible for the same which could range from lack of concern shown by the
bank to the fact that people do not like the breech of privacy which private
banks do my making calls for other products of the bank on repetitive basis. Thus
the bank needs to respect this right of the customer and not make unsolicited calls
to them and also remember that they can no longer survive by taking customers
for a ride.

11. Though the bank offers free doorstep banking once a day this fact is also not
known to many customers or they still do not trust this service what ever the
reason the bank can popularize this service to gain an edge over nationalized
banks.

Page 88 of 103
12. One complain which really came up during the course of our market research was
that most of the customers felt that the sales agents who approach them on
behalf of the bank our not qualified enough to perform the task for this esteemed
bank and thus we recommend that college students or fresh graduates from
reputed colleges can be hired on part time basis for this job.

13. Our market research shows that women are a big target for the bank as not
only is there role in influencing investment decision in the family increasing also
there own potential has increased as a lot of them are working these days. Also it
has been seen that business men prefer to open the savings account is his
spouse’s name with the business account in his name. The bank needs to
capitalize on this by offering schemes which are women friendly and also
directing the promotion towards them.

14.Quality of service has been rated highly important by all demofigureic factors as a
reason for banking with a particular bank, Standard Chartered needs to improve
the services provided to its existing customers before attracting more in the future
and use word of mouth as a promotional tool to increase the sales potential of its
savings account.

Page 89 of 103
 RECOMMENDATIONS FOR ULIPS

1. Building trust by providing the customers with adequate knowledge about the
company and then the product.
2. Enhancing the level of awareness in terms of the company, their Partners and the
product and special emphasis among the female chunk of the population.
3. Using the Brand equity of Standard Chartered to promote Bajaj Allianz (Business
assurance model) rather than doing it other way since brands like Bajaj are not
enjoying the same image today what they did years back.
4. The private players should try to establish Brand awareness and credibility
especially among the senior customers so as to divert their interest from the clean
sweep made by LIC and UTI.
5. The companies should target more of female consumers as they have money to
invest but are completely unaware about the options available to them and ULIP
should be made to look more attractive to them.
6. Adequate advertisement via appropriate media should be done by the various
companies as is done in the case of mutual Funds.
7. Customers are not aware about the ULIP being offered by their own banks.
Specifically it was seen in case of Standard Chartered Bank as those with BAJAJ
ALLIANZ were not able to relate it to the bank. So, proper counters should be
there to facilitate customer awareness.
8. Certain discount charges should be made available because of the severe
competition within the private players as well as the biggest threat posed by LIC
and SBI.
9. Various branches of Standard Chartered should try to tap their own customers first
depending on the various profiles they have, rather than the other set of
customers which they primarily focus upon.
10.ULIP is a highly untapped market and here the right strategies and hitting the
bulls eye by propagating the most sought after benefit among the customers will
attract most of the customers.
11.Most of the customers as per our sample are inclined towards ICICI Pru because
of the strong policy base and easy accessibility. So other competitors really need
to make a new brand awareness policy. But on the other hand some of them are
really unhappy with the service provisions done by ICICI Pru after acquiring the
customers. In their view it deteriorates. So it should be taken care of.

Page 90 of 103
12.One of the most important steps to be taken by standard Chartered bank to be
successful with ULIPs (Bajaj Allainz) is to promote these by using the brand
awareness and brand equity of Standard Chartered and not Bajaj Allainz for which
it is acting as a distributor.

Page 91 of 103
 LIMITATIONS

Some of the limitations of the project are listed as below:

1. The time period of just 2 months was the major limitation.

2. Due to the financial and time constraints a cluster analysis of the population so as
to get better results was not feasible.

3. It was difficult to break the ice with the common people initially. It was a daunting
task to convince them to fill in the personal details of the questionnaire where
they have to mention the monthly income, occupation etc.

4. To convince the people for a proper interviewing process is also difficult.

5. The competitor analysis in the manual could only be compiled for a rough idea to
the nature of the product. The product features and NAVs keep on changing on a
daily basis.

6. Compilation of data on competitor analysis was difficult due to non-availability of

correct information.

7. The figures have been taken as approximations.

Page 92 of 103
 REFRENCES

Books:

1. Churchill & Brown; Basic Marketing Research ;Thomas Publications,5th edition

2. Paul Hague, Nick Hague and Carol-Ann Morgan; Market Research in Practice;
Kogan Page limited,1st South Asian edition 2004.
3. Harper W.Boyd, Jr. Ralph Westfall, Stanley F. G Stasch; Marketing Research; All
India Traveller Book Seller, 7th edition.
4. William O. Bearden, Richard G. Netemeyer, Mary F. Mobley; Handbook of
Marketing Skills; SAGE Publications.
5. “Malhotra Naresh , Marketing Research”, Prentice Hall of India.
6. “Kotler Philip,Marketing Management”
7. “Business Research Methods”(2004), Tata McGraw Hill Edition
8. Business Statistics,Levin,Krehbiel,Berenson

Websites:
• www.standardchartered.in
• www.hoovers.com
• http://www.thehindubusinessline.com/2005/07/04/stories/2005070401261200.ht
m
• www.wikipedia.org
• www.mouthshut.com
• www.financeindiamart.com
• www.howstuffworks.com
• www.standardchartered.com
• www.google.com
• www.icici.com
• www.abnamro.com
• www.kotak.com
• www.hdfcbank.com
• www.hsbcbank.com

Personnel:

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1Mr. Nitish Dipankar
2Mrs.Abha Rishi.

APPENDIX-1
1. Questionnaire

2. Market survey for Standard Chartered Bank:

3. Section A: Personal Information

4. NAME:

5. GENDER:
a) Male b) Female

6. MARTIAL STATUS:
a) Single b) Married

7. AGE:
a) 15-20 yrs b) 21-30 yrs
c) 31- 40 yrs d) 41-50 yrs
e) >50 yrs

8. OCCUPATION:
a) Government b) Private Service
c) Business c) other

9. ANNUAL INCOME:
a) Up to 2 lacs b) Between 2-3 lacs
c) 3-5 lacs d) Above 5 lacs

10. Which bank/s do you bank with?

a) ICICI bank b) HDFC bank
c) kotak mahindra bank d) ABN ambro bank
e) standard chartered bank f) others (plz specify)

11. Are you satisfied with the service provided by your bank?
a. a)Yes  b) No c) cant say

12. If No, then which of the following service are you looking for?
a)Free Interbank ATM transaction b) 24/7 banking
c) Provision of credit card  d) Intercity cash deposit

13. Average minimum balance maintained in your savings A/c?

a. a) below 10,000 b) 10000- 15000
b. c)15,000-20,000 d) >20000

14. Which facility do you consider the most important while opening a savings A/c?

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 c. a) Convenience/location b) banking hours
d. c) Quality of service d) Less AQB*

15. Which is the most preferred method of banking transaction?

a)Over the counter b)ATM
c)Internet / phone banking d) Doorstep service

16.Your preferred method of making payments?

a)Cash b) Cheque
c) Debit card d) Credit card

17. Where all have you invested:

a) FDs b) MFs c) ULIP
c) Insurance d) Capital Market e) NSC
f) Post Office g) Real state h) Others (pl specify)

18. How often do you invest:

a) Monthly b) Quarterly
c) Half yearly e) annually

19.What are the reasons for investment?

a) Child Education b) Child Marriage
c) Pension d) Income Growth
e) Tax Rebate f) others

20.What is your time horizon when investing

a) Up to 3 yrs b) Between 4-7 yrs
c) 7-10 yrs d) 10-15 yrs
e) Over 15 yrs

21.When investing , what would be your preference?

a) Low Risk, low return b) Moderate Risk, moderate return
c) High Risk , high return d) No Risk

22.Are you aware about Unit Linked Insurance Plan (ULIP)?

a) Yes b) No

23.Have you invested in the ULIP of any company;

if yes then please tick the following?

a) ICICI Prudential life insurance b) HDFC Standard Life

c) Bajaj Allianz Life Insurance d) Kotak Life Insurance
e) Any other (please specify)

24.Are you interested in investing in ULIP :

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a) Yes b) No

APPENDIX-2

ICICI Bank
Senior
Savings A/C Citizen A/c No Frills A/C
Eligibility
Resident Indian Yes Yes Yes
Age> 18 yrs. Yes > 60 yrs. Yes
Facility
Debit-cum-ATM Card Yes Yes Yes
Money Multipier
Feature Yes Yes Yes
Internet Banking Yes Yes Yes
Phone Banking Yes Yes Yes
Doorstep Service Yes Yes No
Anywhere Banking Yes Yes Yes
At par Cheque Yes Yes No
Nomination Facility Yes Yes Yes
Special Loans No Yes No
Insurance Cover No No No
Self Cheque or Cash Yes Yes Yes
Documentation
Identity Proof Yes Yes Yes
Proof of
Communication
Address Yes Yes Yes
Interest
Same as regular
Interest Rates 3.50% 4.00% A/c
Interest Paid Quarterly Quarterly Half- Yearly
Charges
Internet Banking Free Free Free

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Phone Banking Free Free Free
Mobile Banking Free Free Free
Debit Card 99/- 99/- 99/-
Replacement Card 200/- 200/- 200/-
Interbank Tx.( From
partner banks) 10/- to 20/- 10/- to 20/- 10/- to 20/-
Interbank Tx.( From

25/- to 60/-
non-partner banks) 25/- to 60/- 25/-
Home delivery and
Take-off Charges 10/- 10/- 10/-
Duplicate Statement 25/- 25/- 25/-
Monthly Statement 200/- 200/- 200/-
Average Quarterly
Balance 5000/- 5000/- 250/-
Penalty on Non-
Confirmation(AQB) 750/- 250/- 50/-
Standing
Instructions
Setting up 100/- 100/- N/A
Per transaction Free Free
Cheque Related
Charges
Cheque Book (second
book onwards)
Outstation cheque 100/- 100/- 100/-
Cheque Collection
Charges Rs. 30 to Rs. 10,000 @ Rs. 2.50 per Thousand
Cheque Returns
Inward
200/- and 50/- 200/- and 200/- and 50/-
Outward local 50/- local local
A/C closure 100/- 100/- 100/-
2/- per 1000/- Same as Same as regular
DD Charges (min 50/-) regular A/c A/c
A/c not operated for
more than two years

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 Investment
Partner ICICI Prudential

APPENDIX-3

ULIP PLANS:-

STANDARD CHARTED BANK:-

YEAR 10000-199999 200000 -999999 1000000

1 95.00% 96.00% 97.00%

TOP UPS ARE ALLOCATED WITH 98%

ICICI BANK:-

YEAR 18000-49999 50000 AND ABOVE

1 80% 82.00%
2 92.5% 92.50%
3 96.00% 96.00%
ONWARDS

HDFC BANK:-

YEAR REGULAR PREMIUM SINGLE

PREMIUM TOP –
UP (S)
1 70.00 % 97.50 %
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 2 70.00 % 97.50 %
3 onwards 99.00 % 99.00 %

DETAILS:-

DETAILS STANDARD ICICI HDFC

Min age at entry 0 0 18
Max age at entry 60 65 50
Min age at maturity 18
Max age at maturity 70 65
Minimum term 10 10 10
Min age at entry for add 18
benefits
Max age at entry for add 50
benefits

CHARGES UNDER THE PLAN :-

Charges Standard charted ICICI HDFC

detail
Policy 600/annum/policy at 20/month
administration 5% p.a ,max 5%
pa

Fund Annual investment Maximiser-2.25% 0.80% pa

management -equity Balancer-2.25% of fund
growth=1.75% Protector-1.50% value,max
-accelerator mid- Preserver-0.75% 2% pa
cap=1.75%
-equity indexII-
1.25%
-bond & liquid-
0.95%
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Switching 3 4 24
free/yr,min(5%,100) free/yr+100/switch free/yr+1
00/switch

Additional Cancellation of
benefits units/monthly

Mortality(age) Annum on sum at Montly on life Per month

risk/1000 cover/1000 depends
on age
20 1.12 1.33

30 1.29 1.46

40 2.37 2.48

50 6.08 5.91

Surrender Only at capital units 3rd yr = 2% 30% of

diff b/w

1-(1/1.05)n)*value 4th yr = 1% regular

of capital units Premium
and
N is term of policy 5th yr = 0% Paid in 1st
2 yr of
contract
Miscellaneous 100/transaction

Initial 5%pa of capital

management units for 20yr

Rider premium premium allocation

charges

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 Policy 150% 110% 100%
termination

Investment options

STANDARD CHARTED BANK

Fund Bank deposit,money Equity Risk

market
Liquid 100% - Low

Bond Max 20% in money - Moderate

mkt & 80% in g-
secs,bond and FD
Equity 20% 80% Very high
index-I
Equity 15% 85% High
index-II
Accelerat 20`% 80%(50% in mid- Very high
or mid- cap)
cap

ICICI

Fund Debt,money Equity&euity related Risk

market,cash securities
Maximiser 0-25% 75-100% High

Balancer 60-!00% 0-40% Moderate

Protector 100% 0 Low

Preserver 0-50% 50-100% Capital

preservat
ion

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 HDFC

Fund Bank Govt equity Risk

deposit,money securities,bond
mkt
Liquid 100% - - Low

Secure managed - 100% - Low moderate

Defensive - 70-85% 15-30% Moderate

managed
Balanced - 40-70% 30-60% High
managed
Equit Equity - 0-40% 60-100% Very high
managed
Growth - - 100% Very high

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 Minimum and Maximum Sum Assured

STANDARD CHARTERED BANK

Min= Max(0.5times the policy term times annualized premium,5 times the annualized
premium)
Max=y times the annual premium

Age group 0-30 31- 36- 41- 46- 56-

35 40 45 55 60
Y for base cover or base cover with 100 85 70 50 30 20
UL ADB & or ULTPD rider

Y for base cover with any other rider/riders = 0.5*policy term

*as per min SA guideline

ICICI

Min = annual premium*term/2,,min of Rs 10000

HDFC

Min =5*annualized premium Max=250000

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