Professional Documents
Culture Documents
Introduction
The banking sector has under gone turbulent changes in the past few years. The
financial sector reforms have brought in the entry of new private sector and
foreign banks in the country. The conventional banking as outlined above has
given way for professional and high-tech banking. There has been a paradigm
shift from the monopolies of public sector banks to competitive banking. Public
sector banks can no longer remain complacent with their conventional products
and services. With walk in business virtually being ruled out, banks are now
scouting for quality consumers both for building their resources and assets
There were times when the corporate clientele occupied the centre stage and the
retail ones were pushed to the back seat. The slow down of the economy,
sluggish industrial growth and slump in agricultural activities have pushed the
commercial banks to look to the retail customers.
Retail banking has both pros and cons. In a situation like today, the bankers have
very little option, but to chant the “Retail Mantra”
N.L.D.I.M.S.R 1
RETAIL BANKING
The domain of retail banking market has tremendous growth potential for banks
and finance companies, as at present it is largely untapped. The penetration
level is 2.5 to 3 % and is in a scenario when the requirements of the consumers
are growing. In the past, people never believed in buying consumer goods on
credit. But today the attitude is changing. The demand for consumer products
has increased. Today, about 70% of consumer goods purchased are through
finance schemes/loans as against 40% about 1 to 6 years ago. The home loans
alone account for nearly two-third of the total retail portfolio of the bank
N.L.D.I.M.S.R 2
RETAIL BANKING
Stable and constitute core deposits. Better yield and improved bottom line.
Less bargaining for additional interest. Good Avenue for funds deployment.
Current scenario
N.L.D.I.M.S.R 3
RETAIL BANKING
According to the Reserve Bank of India annual report for 2001-02, as on March
22, 2003, retail credit outstanding amounted to Rs 1,60,000 crore, including
housing loans, loans for consumer
Net Bank Credit
durables, loans to individuals
14.1%
against shares and bonds, other
non-priority sector personal loans
and advances against fixed
85.9% deposits. That's 14.1 per cent of
Retail credit
net bank credit outstanding, and
Others
15.6 per cent of non-food gross
bank credit.
Incremental retail credit in FY02, at Rs 14,114 crore, was 20.8 per cent of
incremental net bank credit, and 26.3 per cent of non-food bank gross credit.
Retail credit increased by only Rs 7,026 crore in FY01, and accounted for merely
13 per cent of incremental non-food gross bank credit.
The sharp acceleration in the rate of growth of retail credit is clear. The fastest
growing business segments are housing loans, incremental growth in which was
Rs 6,203 crore in FY02, compared with Rs 2,043 crore in the preceding year;
and the category "other non-priority sector personal loans", the outstanding of
which increased by Rs 5,338 crore in FY2002 compared with Rs 2,655 crore in
the previous year.
The higher exposure to retail lending has come at the cost of credit to industry.
Compare the 32.6 per cent of incremental non-food gross bank credit that went
to medium and large scale industry five years ago, in 1996-97, WITH the 17.7
per cent that went into the segment last year. Or consider the 13.8 per cent of
incremental non-food gross bank credit that went to small scale industries in
1996-97 with the measly 2.2 per cent that went into the segment last year to
realize how lending has changed in the last five years.
N.L.D.I.M.S.R 4
RETAIL BANKING
N.L.D.I.M.S.R 5
RETAIL BANKING
A banks retail offering can be broadly categorized into Core service, facilitating
service, and supporting service. Core service is the reason for being in the
market, facilitating services are needed so that the core service can be used, and
supporting services exactly discriminates the service package from the services
of competitors.
N.L.D.I.M.S.R 6
RETAIL BANKING
Internet banking
Auto Finance
CUSTOMER PROFILE
Sector Analysis
N.L.D.I.M.S.R 8
RETAIL BANKING
About 75% of the vehicles especially the cars sold in the country are through
consumer loans schemes.
The factors that propel growth are :
Low interest rates.
Poor urban transport in many areas, increasing income levels .
Even for second hand cars finance is available.
Increase in GDP growth.
Increased income levels and changing lifestyles.
Nearly 3 lacs second hand cars have been financed.
Default rate for car loans is around 1 %.
Infact on account of liberal financing by banks, production of passenger cars,
motorcycles and scooters has registered good growth
It will also provide a boost to the auto manufacturing sector.
Competition
The sector offers intense competition among players. Major competitors in the
sector include ICICI, SBI, HSBC, HDFC etc.
Banks and NBFCs have tie up arrangements with the automobile dealers for
making available vehicle finance.
This has proved to be advantageous for customers also. They can complete all
the formalities with less paper work at the auto dealers’ showroom itself without
going to bank.
Market Leader
N.L.D.I.M.S.R 9
RETAIL BANKING
The auto finance market is led by ICICI. ICICI bank funds about 15 % of cars that
are rolled out. ICICI banks retail portfolio as on September 30, 2002 was over
Rs. 134.61 billion, as compared to combined retail portfolio of ICICI and ICICI
bank of about Rs. 77.35 bn on March 31, 2002. Every bank has its unique
segmentation and targeting strategy. Similarly ICICI also follows a segmentation
strategy to divide its market into strata’s. This helps them to decide upon their
target audience and what are their wants and needs.
The ICICI bank in India has adopted ‘Life Stage Segmentation Strategy’. This
approach aims to minimize overlaps between two segments by categorizing
customers into various segments based on the stage of life they have reached.
The banks philosophy is to have product idea for every stage of an individual’s
life from childhood to retirement and the bank has a wide product range.
ICICI is also adopting a strategy of creating a liability based product along with a
asset based product and vice-versa.
Based on the Life Stage Segmentation Strategy ICICI has divided its market into
various segments constituting people from different age group and income class.
This has helped them to decide which segment is to be targeted for which retail
offering.
For eg: The target market for auto finance are people belonging to the age group
of 28-35 yrs., having a settled job or business and belonging to middle class.
Consumer Credit
N.L.D.I.M.S.R 10
RETAIL BANKING
Customer Profile
Credit Cards:
N.L.D.I.M.S.R 11
RETAIL BANKING
Mention cards and most people will think of credit cards. Yet, popular as they are,
credit cards, which are accepted as a payment device at over 20 million shops
worldwide, really represent just one type of card. Other cards include debit cards,
smart cards and charge cards.
Consumer profile
Credit card users generally belong to the income bracket of Rs. 90,000 p.a.
and above.
There is a large middle class segment who are prospective cardholders and
cannot satisfy the normal criteria for issuance of cards.
Most of the middle class people do not go for credit cards because they do
not want to fall in the debit trap in view of their low income levels.
There are about 5.5 bn cardholders in India but the average amount spent is
very low.
However, slowly people in India are getting acquainted with the plastic money
culture.
Traditionally used by rich people to avoid carrying heavy cash.
Sector Analysis:
Card industry has migrated from paper-based to terminal-based as a part of risk
administration. Tier-I cities are highly targeted by multiple issuers and acquirers.
Many big players of the market are averse towards cities other than tier-I,
N.L.D.I.M.S.R 12
RETAIL BANKING
although tier-II cities have a potential of being a promising markets for credit
cards.
There are 6 million cards in use.
The potential is anticipated at 40 million.
Credit card culture pioneered by foreign banks initially like Citibank,
StanChart etc. in our country.
Payment habits have undergone a change.
Credit cards have increased from 5 lacs in 1992 to 60 lacs in 2002 (avg.
growth at 20-25 % p.a.)
The average annual spending through credit cards is around Rs.18000 Cr.
(which is less than 1% of total personal consumption spending in India, as
compared to 30% in US. SBI, ICICI Bank has a card base of 9 lacs and 6 lacs
respectively.)
Credit cards in India are used more as a transactional investment rather than
as a medium of servicing credit.
It offers an attractive interest of 30% to 36%.
Card business is popular on account of its wider acceptability
Credit card usage also entitles holders for attractive bonus, incentives, loyalty
points etc.
The debit cards usage is also becoming popular with a card base of one
million.
Competition
Banks in India have realized that the credit card business need not remain an
exclusive preserve of foreign banks like Citibank or Standard Chartered Bank.
Card business is a very potential and fast growing market is no where near the
market potential. State Bank of India, a late entrant has already issued 9 lakh
cards. HDFC Bank, another late entrant has reached a card base of over
70,000. Citibank Suvidha credit card is also turning out to be a great success
story. Other important players in the sector are HSBC, SBI, ICICI, UTI etc.
N.L.D.I.M.S.R 13
RETAIL BANKING
There is a case for reduction in the rate of interest on debit balances from
present level of over 30% p.a. Interestingly, Andhra bank and HDFC bank rather
than any other foreign banks have taken positive steps in this regard. The
network of branches does not seem to be effectively utilized for marketing by
Indian banks in credit card business. If only these banks becomes market savvy
and exploit branches to the hilt in issuance of credit cards, there could be great
success awaiting them.
15.77 16 CITIBANK
STAN CHART
SBI
5.88 HSBC
Segmentation.
The potential segments which many banks have not explored so far are self-
employed people and housewives. Self-employed people due to lack of proper
identity (i.e. either salary certificate of PNR number) are still borrowing at a
higher rate and banks are no t assessing the credit risk premiums properly.
Similarly, a suitable banking product is required, which makes the housewife to
feel liberated and empowered. The survey of NCAER shows that rural India is
gradually possessing variety of consumer durables and electronic goods. Banks
have to design suitable products to meet the requirements of rural rich and rural
poor. Census of 2001 shows that India has 423 towns (Eight Metros, 19 Mini
Metros, 396 Towns), and that financial products are very rare for urban poor and
low salaried persons.
N.L.D.I.M.S.R 14
RETAIL BANKING
If one were to study the sector-wise performance over the last five years, the
housing finance industry has outperformed everyone’s expectations. Loan
disbursals have grown at a CAGR of over 35% in the last five years. But the
industry is still fragmented with a large number of players spread across different
parts of the country. There are nearly 383 HFCs or housing finance companies in
the country currently. This is apart from the numerous banks that have entered in
to the fray. In this article we look at the nature of this industry, its trends, the
major players involved and the prospects of the industry going forward.
The housing finance industry is estimated to be worth nearly Rs 330 bn (FY02)
and is estimated to have grown by nearly 28% compared to FY01. A huge deficit
of nearly 40 m (FY02E) dwelling units is likely to ensure that the robust growth
rates in this sector will continue in the future.
N.L.D.I.M.S.R 15
RETAIL BANKING
CONSUMER PROFILE
Tangible Factors:
Builders
Housing Estate agents
Banks
Friends & Relatives
Intangible Factors:
In India, owning a house has a high social regard.
Insecurity of staying in rental houses.
Sense of Belongingness.
Industry in Transition
N.L.D.I.M.S.R 16
RETAIL BANKING
Competition
The key players are HDFC, LICHF, Canfin Home, SBI, ICICI, Bank of Baroda
etc.
There is very stiff competition in the matter of interest rates- rate cuts are
announced at very frequent intervals.
The market size is expected to grow to Rs.40, 000 Cr.
Size of the loan varies from Rs. 2 lakhs to Rs. 1 Cr. Average tenure of
housing loans is 15 years
Lower default rate is a big attraction for banks to take-up to housing finance
(default rate is just 0.5%).
N.L.D.I.M.S.R 17
RETAIL BANKING
Market Fragmentation
Before going any further, a brief view at the level of fragmentation in the industry
is of significance. The graph above gives us the breakup of market share based
on outstanding housing loans as on March 31, 2002. The split up pie of the
market share indicates that HDFC is still the market leader followed by SBI. But
in terms of the housing loan assets, LIC Housing Finance limited (LICHF)
occupies second spot next to HDFC.
What is significant is the fact that banks have stepped in to the domain of these
HFCs and are capturing market share of the incremental loans disbursed.
Currently, banks have garnered close to 35% share of the housing finance
market by offering competitive rates of interest. Among banks, SBI and ICICI
Bank have been the most aggressive as far as loan disbursals are concerned.
N.L.D.I.M.S.R 18
RETAIL BANKING
We expect the trend to continue with banks gaining a larger share in incremental
loan disbursals.
Performance of HFCs
Particulars FY98 FY99 FY00 FY01
New dynamics
An important development in the housing finance business has been the entry of
new players. The relatively low risk in a housing portfolio has spurred new
entrants in the last few years. Arguably, the most significant entrant has been
ICICI Home Finance. Among non-banking finance companies, Sundaram
Finance and Tata Finance launched housing finance subsidiaries in the recent
past, while banks have shown increased interest in acquiring housing assets.
Banks have always had subsidiaries handling housing finance, but in the recent
past they seem to have taken a greater interest in building retail assets. Banks
have a clear advantage in the field simply because they access the lowest cost
funds in India. As things stand, a loan from a bank is less expensive than one
from a housing finance company.
Despite the overwhelming advantage that banks have, HFCs are unperturbed.
The reasons range from a feeling that banks will lose interest in retail finance
after a point to a belief that banks are not geared to servicing a big thrust into
housing finance. In short, the HFCs believe banks cannot match them in a critical
area — service.
N.L.D.I.M.S.R 19
RETAIL BANKING
Changing Contours
The fast-changing environment has had a telling impact on HFCs. Following
heightened competition, spreads (difference between interest income and
expenditure) have declined over the last couple of years. HDFC feels that its
current spread, of 1.8-2 per cent, is likely to hold firm. Competition has whittled
down high margins and changed housing finance into a low margin, low-risk
business.
With their geographical spread and customer knowledge, the HFCs are trying to
tap new opportunities that have come up. Using their existing infrastructure to
sell other financial products to retail customers has caught the fancy of the HFCs.
The opening up of the insurance industry, in particular, seems to have triggered a
determined move to diversify income stream.
Even here, the bigger players are in a different league. For instance, a HDFC has
the resource base to promote subsidiaries in most other areas of financial
intermediation — be it asset management, insurance or commercial banking.
Smaller HFCs that have wide distribution networks can only hope to leverage
their reach for a commission.
N.L.D.I.M.S.R 20
RETAIL BANKING
N.L.D.I.M.S.R 21
RETAIL BANKING
Apart from that the Indian economy may have reached a stage where interest
rates may continue to remain soft over the long-term. This is likely to ensure a
steady demand for housing loans.
Source: NHB
N.L.D.I.M.S.R 22
RETAIL BANKING
SWOT ANALYSIS
ICICI BANK
STRENGTHS WEAKNESSES
Retail banking supermarket with the ability Efforts are concentrated more towards the
to cross-sell entire range of credit products. urban consumers thus ignoring the rural
N.L.D.I.M.S.R 23
RETAIL BANKING
OPPORTUNITY THREAT
Changing consumer outlook towards loans Stiff competition in the housing loans
and related products segment from HDFC, LIC Housing etc.
Being No.1 in the auto finance segment Institutions have emerged and have eaten
paves the way to consolidate its market up the banks’ market share.
Rapid increase in the retail loan market advertisements might help competitors to
LATEST HAPPENINGS
Of late banks are coming up with innovative product offerings and promotion
schemes to tie up old customers and attract new customers. Some of the
innovative offerings are listed below:-
Standard Chartered ANZ has launched the Home Saver Account. Along with
the Home Loan, your will get a FREE savings bank account into which you
may deposit your monthly salary. The EMI for the loan will be automatically
reduced from your account. The excess balance in your savings account will
earn interest that will be adjusted against your future EMI payments. The
bank claims that the effective interest rate gets reduced by upto 45% because
of this scheme.
Citibank
N.L.D.I.M.S.R 24
RETAIL BANKING
Offer loans with no guarantors. Most banks require that you present a
guarantor who will back you up if you default on your loan repayment. It
can often be embarrassing to ask friends to stand guarantor as most
banks do not accept relatives as guarantors.
Citibank gives home loans upto 90% of the property value, the highest
from any bank (only Tata Hsg Fin. matched this offer)
Citibank offers a flexi-savings account to reduce your cost of borrowing.
The bank will automatically open a Saving Account from which you can
give standing instructions to deduct the EMI payments for the loan. You
can then prepay the loan at any point in time and be given instant credit
for the same, in case you get a large lump-sum annual bonus from your
employer. Should you require money in an emergency at any point you
can avail of a over draft on this savings account at an interest rate that is
the same as that on your Home loan. This works out much cheaper than
taking an over draft on a normal savings account
Dewan Housing Finance and LIC Housing Finance Ltd. offers consumer
loans to their existing Home Loan customers at a discount to market rates.
The customer has to be a housing loan borrower for the period not less than 6
month with a good repayment record
FREE DOUBLE PROTECTION PLAN in the form of Personal Accident Risk
Cover and Property Insurance
Gives a free personal accident cover along with the loan. Oriental Bank of
Commerce has started to offer a free property insurance cover of the
value of property and a free accident cover of upto Rs. 5 lacs.
GICHFL gives Consumer loans for purchase of home equipment at the
same interest rate as the home loan to customers at rates of interest that
N.L.D.I.M.S.R 25
RETAIL BANKING
are the lower than other consumer loans. The total loan amount including
the housing loan can be upto 90% of the value of the home. The tenure of
the consumer loan is restricted to 5 years.
HDFC
N.L.D.I.M.S.R 26
RETAIL BANKING
The fixed rate loan can be converted to floating without any penalty
charges. However, you will be charged 2% if you refinance the loan from
another company
Hudco
Will waive the last 2 EMI payments on the loan if the customer has a
perfect repayment record with no bounced cheques. The loan amount
initially taken must exceed Rs. 5 lacs and no prepayments where to have
been made during the tenure of the loan. This is not available for the
Floating rate loan.
There is a discounted start-up fee for Government employees. The
Administrating fees stand reduced from0.7% to 0.5% only.
Free triple insurance - property cover, earthquake cover and personal
accident cover. given free along with the loan ( not available for the
Floating rate loan)
You can prepay the entire loan in any year without any prepayment
penalty. Each prepayment has to be at least 10% of the outstanding loan.
However, the floating rate loan has a 1% prepayment penalty.
HSBC
Offers flexible interest rate loans that can be reset every year depending
on the prevailing interest rates at that point. The new interest rate will be
applicable for the rolling one year
Guarantor is required only for loans more than Rs. 10 lacs. Else no
guarantor
You can prepay up to 25% of the outstanding loan in any year without
paying a penalty. For amounts over that, 2% penalty levied.
N.L.D.I.M.S.R 27
RETAIL BANKING
ICICI
LIC Hsg Finance Ltd. will lower quoted interest rate by 0.5% for loans
covered by a life insurance cover that is taken from LIC. The life cover must
be taken for a minimum period that covers the tenure of the Home Loan
SBI
Offers Home Loans with no start-up costs. Most banks charge as high as
2% as processing and administrative fees
Prepayment is 2% if the entire loan is pre paid else it is 0%. Avoid this
penalty by prepaying up to 99% of your loan if need be
Offers Home Loans up to 90% of the value of the property and 100% in
some new projects.
N.L.D.I.M.S.R 28
RETAIL BANKING
Advertising:
The sharp rise in the unaided recall of Private Indian banks is testament to
the aggressive advertising and marketing drive of these players over the
past one year
A reading of the list of top 10 banks in terms of recall shows a doubling of the
number of Indian investors who are now aware of the Indian private banks like
N.L.D.I.M.S.R 29
RETAIL BANKING
ICICI Bank and HDFC Bank compared to two years ago. While recall for the
other banks that are part of the top 10 remains largely unchanged, 51% of
Indians are now aware of ICICI Bank and 42% are aware of HDFC Bank
compared to 27% and 26% respectively when the last round of INVESTRACK
was conducted.
N.L.D.I.M.S.R 30
RETAIL BANKING
Another observation reveals that banks with less penetration have higher
advertising spends.
ICICI and HDFC head the fleet of banks in terms of their advertising
spends.
The advertisements have both factual as well as emotional appeal. The
private banks focus on cashing upon emotional needs of a consumer
whereas public banks stick to traditional advertising focusing only on the
product features.
Television and hoardings seem to be the preferred mode of advertisement
across all banks.
The international banks are striving to achieve a local appeal in a bid to
woo consumers
The following is the summary of a few banks’ advertising strategies:
ICICI
Positioning:
The bank’s initial positioning was mainly on service factor and now this
has changed to a customer’s interest focused and a friendly bank.
Message:
With the shift in positioning there has also been change in the message
conveyed from service focused to customer interest focused.
It is the first to sign up a celebrity ‘Amitabh bachchan’ for its advertising.
This conveyed a message of the bank being as popular and famous as
the celebrity.
N.L.D.I.M.S.R 31
RETAIL BANKING
Mr. Easy life – the fictional character in the ICICI ads is the first brand icon
associated with any bank.
It is also the first bank to address the emotional appeal and attach it to the
physical appeal.
Media :
The general preference is for television, hoardings, newspapers,
magazines, radio etc.
ATMs also form an effective advertising tool as their mere presence
makes the consumer aware of the bank. Besides this, ATM machines are
also effectively utilized to cross-sell the bank’s retail offerings to its already
existing customers.
HSBC
Message: The bank is trying to promote its global expertise to the Indian
customers, i.e. service levels at par with international standards, anticipating
customers growing needs and designing products accordingly.
Media :
N.L.D.I.M.S.R 32
RETAIL BANKING
HDFC
Positioning:
Positioning of the bank conveys-
Expertise service.
It tries to address the financial needs of the consumers.
Message:
The bank’s presence in the housing sector for a fairly long period is
portrayed in its advertisements.
They also focus on promoting the simplicity in work procedure, superior
service. Their ads also strive to bring the bank out of the ‘only housing’
image.
Media :
The most preferred medium by the bank are hoardings and print media.
They rely on word of mouth and goodwill which they have created through
25 years of service.
N.L.D.I.M.S.R 33
RETAIL BANKING
CONSUMER SURVEY
RESEARCH OBJECTIVE
Top of mind awareness of consumers for banks offering various retail
products.
Factors influencing their purchase decision.
To study the comparative influence of various mediums of advertisements
in creating awareness amongst the consumers.
N.L.D.I.M.S.R 34
RETAIL BANKING
RESEARCH METHODOLOGY
An exploratory research was conducted in order the study the consumer
perception about various banks offering retail products and the banks they
opt for.
Sample Size
A random sample of 100 were administered with the questionnaire and
responses collected.
Research Area
The research was carried out at Borivali, Mira road, Churchgate and
Andheri regions in Mumbai.
Respondents’ profile
Data was collected from respondents across all age and income groups. Data
relating to age was collected. This segmentation helped us to gain insights into
the perception and preferences across all age groups. Based on the nature of
retail banking products age groups were identified and classified as follows:
N.L.D.I.M.S.R 35
RETAIL BANKING
Majority of the
respondents belonged to
17% 15% the age group of 25 – 40
18-25 yrs
years.
25-40 yrs
The reason associated
23% 40-55 yrs
with it is that this group is
45% 55 yrs & above
the highest user of retail
offerings.
N.L.D.I.M.S.R 36
RETAIL BANKING
Salaried and businessmen being the major users of retail users of retail
products.
Sources of Data
Questionnaires were administered to people with experience of any retail
offering, currently using or used in the past.
Secondary Sources: Data was collected from the various websites from the
internet as well as Journals of Marketing.
DATA
INFLUENCING FACTORS
ANALYSIS
40 35 37
35
30 The respondents
25
% 20 15 were asked to rank
15
10 7 6 the following factors
5
0
Word of mouth
Goodwill
Advertisement
Processing
Interest rates
time
N.L.D.I.M.S.R 37
Factors
RETAIL BANKING
Respondents were asked which banks they considered for purchasing a retail
offering before selecting a specific bank. The responses for different retail
products were as follows-
N.L.D.I.M.S.R 38
RETAIL BANKING
OTHERS ICICI
11% 16%
STAN CHART
20%
CITI BANK
35%
N.L.D.I.M.S.R
HSBC 39
18%
RETAIL BANKING
Majority of the respondents considered CITI BANK for credit cards followed
by STAN CHART and HSBC.
Being the first bank to launch credit cards and through aggressive
advertisements in the past CITI BANK has created awareness amongst the
customers and by providing superior service it CITI BANK still acquire major
share in the consideration list.
SBI
HDFC 35%
22%
N.L.D.I.M.S.R 40
RETAIL BANKING
SBI outrages other banks in the consideration list for educational loan.
Low interest rates and an extensive presence in varied locations seem to be
the primary reason for this.
Word Of advertising.
New spapers
Mouth 18%
& Magazines Among these,
Radio 3% 27%
awareness through
television is the highest level followed by newspapers.
Customer’s
Awarness Of SBI Through Various Medium
awareness of SBI
through various
Billboards / Television 19% media was
Hoardings 17%
measured.
Word Of Mouth SBI, being an old
26%
New spapers & and experienced
Radio 3% Magazines
35% player, has
immense
awareness through the word of mouth media.
N.L.D.I.M.S.R 41
RETAIL BANKING
SBI
KOTAK 10%
13% HDFC HSBC
21% 3%
N.L.D.I.M.S.R 42
RETAIL BANKING
Customers do not seem to regard HSBC as a bank offering car loan owing to
its limited advertising about this product.
N.L.D.I.M.S.R 43
RETAIL BANKING
The reason associated with this behavior is the close proximity and long
existence of PSU banks making them safe and trustworthy. Also people have had
accounts with the PSU banks as private banks were non-existent earlier, and
hence are reluctant to change their banks. However due to efficient service, short
processing time, competitive rates and a caring attitude people have started to
prefer private banks for meeting their retail needs.
N.L.D.I.M.S.R 44
RETAIL BANKING
Conclusion
N.L.D.I.M.S.R 45
RETAIL BANKING
Bibliography
• Professional Banker
• Websites of Banks
• www.indiainfoline.com
• www.rbi.org
• Economic times
N.L.D.I.M.S.R 46
RETAIL BANKING
QUESTIONNAIRE
Cost _______
Processing time _______
Goodwill _______
Word of mouth _______
N.L.D.I.M.S.R 47
RETAIL BANKING
Advertisement ________
4. Which banks did you consider in your decision making before buying
this product?
a) _______________________
b) _______________________
c) _______________________
d) _______________________
Banks => a) b) c) d)
Television
Newspapers &
Magazines
Radio
Word of mouth
Billboards/Hoardings
N.L.D.I.M.S.R 48
RETAIL BANKING
10. Which bank comes to mind when thinking about personal loan
____________________________________
11. Which bank comes to mind when thinking about housing loan.
____________________________________
12. Would you recommend your bank to someone else for the same
product or any other product that your bank offers?
Yes No
_____________________________________
N.L.D.I.M.S.R 49