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Executive Summary The study is done to find the marketing activities of Vijaya bank.

The classific ation of its product profile and its competitiveness with comparison to other ba nk was analyzed for. The balance sheet of the bank was analyzed and compared wit h the past year balance sheets and ratio analysis was done to find the profitabi lity, liquidity and leverage ratios. The project and the survey were guided thro ughout by experts in specific areas. The analyzer had prepared a questionnaire at the beginning to start a survey of the marketing activity of the bank. A thorough industrial analysis comprising wi th the company profile is done. The project was also on the basis of some of the valuable inputs from the customers of the particular bank to find out the posit ioning of the banks service. The survey was done on some of the randomly selecte d branches. The major findings were that the bank is lagging behind in video advertisements and it has a tough competition from the corporation and syndicate bank. The bank is much more customer service oriented and the workforce present is much impres sive. The product profile of the bank is also impressive where it is covering al l the sections and places in the society. The bank are also high on practicing c orporate social responsibility. It was also seen that the bank is very much conc entrating in the print-advertisement section and also customer call service. It is also the second bank in India to start with the mobile banking system, which has a good customer response. The NPA ratio was fair in all the branches as cons ulted in the research and its increasing number of branches across India was sho wing the progress of the bank. 1

Research Design It is the conceptual structure within which the research is conducted. It consti tutes the blue print for the collection, measurement and analysis of data. The d esign includes an 2

outline of what the researcher will do from writing the hypothesis and its opera tional implication to the final analysis of data. It constitutes the steps taken beginning with the collection of data, classifying, analyzing and interpretatio n, processing and finally putting in textual form. This is one important chapter of project and can be considered as skeletal of project. Objective of the study: To understand the analytical framework of project marketing and to analyze mechanism at bank. To familiarize with the interrelat ionship among various aspects of banking in Vijaya bank. To understand the imp ortance of promotional and market analysis. To study the evaluations and under stand the working in bank. Scope of your study: The scope of the study is limite d to marketing activity of Vijaya Bank (branches). It will give an in depth theo retical and practical knowledge about the marketing aspects. This study also cov ers ratio analysis, of the balance sheet of the bank and also analyses the marke ting activity of the bank. Methodology and limitation: Methodology of Data Colle ction As regarded to methodology, normally both quantitative and qualitative app roaches are adopted. In order to collect the data, this study brings a live anal ysis based on the live data collected from secondary type of data. The technique s of ratio analysis have been made use for the analysis of the financial stateme nt of the bank. Interacting with executives, functional in charge of various a reas and departments discussing informally. Referring to the secondary that is , various project reports prepared by the bank and desk guides available with th e bank. Visiting official website of the bank and other related websites. Qu estionnaire was prepared for survey. Referring to news papers and various busi ness magazines. 3

Limitation of the study The study is limited to then marketing activity of Vijaya Bank. The investigator could not cover all the branches, which are providing similar servi ces. The data recorded was presumed to be authentic This study curtails comp arison, as it is within the purview of only one organization. 4

Industry Profile Overview Banking in India has a long and elaborate history of more than 200 year s. The beginning of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal, was established. But the industry changed rapidly a nd drastically, after the 5

nationalization of banks in 1969. As a result, the public sector banks began exp eriencing numerous positive changes and enormous growth. Then came the much-talk ed-about liberalization and economic reforms that allowed banks to explore new b usiness opportunities and not just remain constrained to generating revenues fro m mere borrowing and lending. This provided the Indian banking scenario a remark able facelift that only continues to get better with time. However, even today, despite the foray of foreign banks in the country, nationalized banks continue t o be biggest lenders in the country. This is primarily due to the size of the ba nks and the penetration of the networks. Nature of the Industry Banks safeguard money and valuables and provide loans, credit, and payment services, such as che cking accounts, money orders, and cashier’s checks. Banks also may offer investm ent and insurance products, which they were once prohibited from selling. As a v ariety of models for cooperation and integration among finance industries have e merged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits. There are several types of banks, which differ in the numb er of services they provide and the clientele they serve. Although some of the d ifferences between these types of banks have lessened as they begin to expand th e range of products and services they offer, there are still key distinguishing traits. Commercial banks, which dominate this industry, offer a full range of se rvices for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks. Global banks are involved in international lending and foreign currency trading, in add ition to the more typical banking services. Regional banks have numerous branche s and automated teller machine (ATM) locations throughout a multi-state area tha t provide banking services to individuals. Banks have become more oriented towar d marketing and sales. As a result, employees need to know about all types of pr oducts and services offered by banks. Community banks are based locally and offe r more personal attention, which many individuals and small businesses prefer. I n recent years, online banks— which provide all services entirely over the Inter net—have entered the market, with some 6

success. However, many traditional banks have also expanded to offer online bank ing, and some formerly Internet-only banks are opting to open branches. Savings banks and savings and loan associations, sometimes called thrift institutions, a re the second largest group of depository institutions. They were first establis hed as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals. Credit unions are another kind of depository institution. Most credit unions are formed by people with a common bond, such as those who work for the same company or be long to the same labor union or church. Members pool their savings and, when the y need money, they may borrow from the credit union, often at a lower interest r ate than that demanded by other financial institutions. Federal Reserve banks ar e Government agencies that perform many financial services for the Government. T heir chief responsibilities are to regulate the banking industry and to help imp lement our Nation’s monetary policy so our economy can run more efficiently by c ontrolling the Nation’s money supply—the total quantity of money in the country, including cash and bank deposits. For example, during slower periods of economi c activity, the Federal Reserve may purchase government securities from commerci al banks, giving them more money to lend, thus expanding the economy. Federal Re serve banks also perform a variety of services for other banks. For example, the y may make emergency loans to banks that are short of cash, and clear checks tha t are drawn and paid out by different banks. Interest on loans is the principal source of revenue for most banks, making their various lending departments criti cal to their success. The commercial lending department loans money to companies to start or expand a business or to purchase inventory and capital equipment. T he consumer lending department handles student loans, credit cards, and loans fo r home improvements, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to purchas e real estate. The money to lend comes primarily from deposits in checking and s avings accounts, certificates of deposit, money market accounts, and other depos it accounts that consumers and businesses set up with the bank. These deposits o ften earn interest for the 7

owner, and accounts that offer checking provide an easy method for making paymen ts safely without using cash. Deposits in many banks are insured by the Federal Deposit Insurance Corporation, which ensures that depositors will get their mone y back, up to a stated limit, if a bank should fail. Technology is having a majo r impact on the banking industry. For example, many routine bank services that o nce required a teller, such as making a withdrawal or deposit, are now available through ATMs that allow people to access their accounts 24 hours a day. Also, d irect deposit allows companies and governments to electronically transfer paymen ts into various accounts. Further, debit cards, which may also used as ATM cards , instantaneously deduct money from an account when the card is swiped across a machine at a store’s cash register. Electronic banking by phone or computer allo ws customers to pay bills and transfer money from one account to another. Throug h these channels, bank customers can also access information such as account bal ances and statement history. Some banks have begun offering online account aggre gation, which makes available in one place detailed and up-to date information o n a customer’s accounts held at various institutions. Advancements in technology have also led to improvements in the ways in which banks process information. U se of check imaging, which allows banks to store photographed checks on the comp uter, is one such example that has been implemented by some banks. Other types o f technology have greatly impacted the lending side of banking. For example, the availability and growing use of credit scoring software allows loans to be appr oved in minutes, rather than days, making lending departments more efficient. Ot her fundamental changes are occurring in the industry as banks diversify their s ervices to become more competitive. Many banks now offer their customers financi al planning and asset management services, as well as brokerage and insurance se rvices, often through a subsidiary or third party. Others are beginning to provi de investment banking services that help companies and governments raise money t hrough the issuance of stocks and bonds, also usually through a subsidiary. As b anks respond to deregulation and as competition in this sector grows, the nature of the banking industry will continue to undergo significant change. 8

Structure The Indian banking system can be classified into nationalized banks, p rivate banks and specialized banking institutions. The industry is highly fragme nted with 30 banking units contributing to almost 50% of deposits and 60% of adv ances. The Reserve Bank of India is the foremost monitoring body in the Indian F inancial sector. It is a centralized body that monitors discrepancies and shortc omings in the system. Industry estimates indicate that out of 274 commercial ban ks operating in the country, 223 banks are in the public sector and 51 are in th e private sector. These private sector banks include 24 foreign banks that have begun their operations here. The specialized banking institutions that include c ooperatives, rural banks, etc. form a part of the nationalized banks category. Origin of the word The name bank derives from the Italian word banco "desk/bench ", used during the Renaissance by Florentine bankers, who used to make their tra nsactions above a desk covered by a green tablecloth. However, traces of banking activity can found even in ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls i n the middle of enclosed courtyards called macella on a long bench called a banc u, from which the words banco and bank are derived. As a moneychanger, the merch ant at the bancu did not so much invest money as merely convert the foreign curr ency into the only legal tender in Rome- that of the Imperial Mint. Scope The Ba nking sector is considered the most lucrative option in today’s job market. In t he industry, a position in Treasury or Forex is considered right on top and this is followed by careers in Private Banking, Investment Banking and Retail Bankin g. One could work in a 9

variety of areas in banking industry including Recurring Deposit account, bankin g officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loan agent, loan manager, mortgage loan underwriter, loa n processing officer, accountant, product marketing and sales executive, and cus tomer service executive among others. In the Financial Services, some of the imp ortant jobs include that of a stockbroker who is essentially a person who buys a nd sells securities on behalf of individuals and institutions for some commissio n. While some brokers like to practice with individual clients others work for i nstitutions. Brokers who work for institutional investors are often called secur ities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatation’s of shares as t hey are expected to have sound knowledge of capital markets. Investment analysts are the backbone of the financial services sector. They study the financial rep orts of companies, assess various statistical information, profitability project ions, compare financial results, survey the industry as a whole and on the basis of the available information, and finally conclude to a decision. Equity Analys ts do jobs similar to investment analysts and research the equity markets and ma ke predictions. 10

Ba nki ng bu sin ess has a his tor y With economic liberalization measures many private and foreign banking companies of were allowed to operate in the country. Favorable economic climate and a variety of ov other factors such as demand for wide range of financial products from various sections er of 20 society led to mutually beneficial growth to the banking sector and economic the growth process . This was coincided by technology development in the banking 0 operations. Toda y most of the Indian cities have networked banking facility as well as ye Intern et banking facility. A customer is empowered to operate his account from any par t ars of .the country. UTI Bank, ICICI, HDFC Bank and Bank of Punjab are the mai n winners of Fr race. the om the tim es of the Ba nk of Be ng al( 18 06) the sec tor has be en 11 Indian Banking & Insurance Industry

Th Scope of Banking & Insurance Sectors in India fin an cia Diversifying into investment banking, insurance, credit cards, depository services, l mortgage financing, securitization has increased revenues. As large number of players sec in various fields enters the market, competition would be intensified by mutual funds, tor Non Banking Finance Corporations (NBFCs), post offices, etc. from both domestic and in foreign players. All this would lead to increased sophistication and technology in the Ind sector. Corporate governance would come into the picture and other financial ia institutions would have to r each global standards. Also the limit for FDI in private has banks is increased to 74% and the limit for FII is 49%. There are many challenges be ahead for the banking sector such as technology, consumer satisfaction, corporate co governanc e, risk management, etc. and they are redefining their priorities, which are me now focused on cost reduction, product differentiation and customer centric serv ices. str Some of the major players in this sector are HDFC, ICICI, HSBC, State Bank of India, on Punjab National Bank, IngVysya, ABNAmro Bank, Centurion Bank, City Bank, etc. ger in ter The insurance sector has opened up for private insura nce companies with the enactment ms of of IRDA Act, 1999. A large number of comp anies are competing under both life and general Insurance. The FDI cap/equity in this sector is 26% and the proposals have to ca bepit cleared by Insurance Regu latory and Development Authority (IRDA) established to protect the interest of h older of Insurance policy and act as a regulator and facilitator in al the indus try. Some of the major players in this sector are LIC, Max New York Life an Insu rance, Bajaj Allianz, ICICI Prudential, HDFC Standard Life, Metlife Insurance, d Birla Sun Life Insurance, etc. Various types of policies and instruments are co ming up the in nu market to attract more customers. Most of the population of In dia is not insured, the hence there is a lot of scope in this sector and a numbe r of companies are planning to mb enter the sector. Every futuristic individual would want himself to get insured. er of Capital markets have a long history of over 100 years in India. Bombay Stock Exchange cus came into existence more than a hundred years ago to remove direct government to me rs. . 12 e

. Major Players in the Industry Allahabad Bank Andhra Bank Axis Bank Ltd. Bank of Baroda Bank of India Canara Bank Central Bank of India HDFC Bank Ltd. ICICI Bank Ltd. Indian Bank IndusInd Bank Ltd. Industrial Development Bank of India Ltd. I NG Vysya Bank Ltd Jammu & Kashmir Bank Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. 13

Kotak Mahindra Group Lakshmi Vilas Bank Ltd. Lord Krishna Bank Ltd North Kanara G.S.B. Co-operative Bank Oriental Bank of Commerce PricewaterhouseCoopers Pvt. L td Punjab & Sind Bank Punjab National Bank South Indian Bank Ltd. State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of India State Bank of Ind ore Ltd. State Bank of Mysore State Bank of Patiala State Bank of Travancore Syn dicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank Wallfo rt Financial Services Ltd. 14

Wells Fargo YES Bank Ltd. Performance of Industry 84 percent of the survey respondents described the performance of the banking Industry as “Very Good” in the fiscal 2004-05. newly granted autonomy would ce rtainly make the PSBs more competitive and Profitable, said 88 per cent responde nts, though some more changes considered Desirable (refer survey) 48 percent o f overall respondents and 67 percent of private bank respondents Expressed the n eed to relax the prescribed limit of single ownership and cross holding cap in t he Ownership and Governance guidelines for Private sector Banks. Although 72 p ercent of public & private sector bank respondents expressed their satisfaction with the recently devised road map for the foreign banks, majority of foreign Ba nk respondents (75 percent) expressed complete dissatisfaction with this Roadmap . 75 percent of the foreign bank respondents expressed that time frame prescri bed to expand through Merger & Acquisitions should have been less and equal numb er voiced that the guidelines are not in line with international norms. Consol idation in the banking industry followed by Technological up gradation was consi dered as key factors currently required to enhance the international Competitive ness of the Indian banks. Free trade agreements (FTA) considered a positive st ep in the area of banking by almost all respondents. The available market size a nd the level of access provided to Survey on Status of Indian banking Industry – Progress & Agenda ahead 2 Indian banks in foreign countries should be the key f actors in consideration, while entering into such agreements, as highlighted by 76 percent of banks Rise in the interest rates imminent say 64 percent survey respondents. Majority expects increase by 0.5 percent. 88 percent of Public an d private sector banks considered HRD related issues as one of 15

the biggest challenge in the process of consolidation. 83 percent respondent b anks claim to have more than 85% level of technological advancements in their ba nks with remaining banks stating it to be around 65-85%. All our respondents e mphasized that customer retention is significantly important for the profitabili ty of the banks. More than 70 percent of banks felt the need of advanced secur ity software’s and stricter security policies to safeguard and ensure the securi ty of customer information. Some of the legal changes suggested are detailed in the survey. 53 percent of respondent banks considered 6 months transition peri od to shift from MIFOR rupee benchmarks for interest rate derivatives to be inad equate Majority of banks felt that their Risk management framework for impleme ntation of BASEL II was well in place. 53 percent of our survey respondents in tend to increase their retail portfolio by more than 25% in the year 2005-06. Rising Indebtedness followed by lack of Technological advancements were identifi ed as biggest challenges that could affect the future growth of Retail banking. 80 percent of survey respondents did not agree with the notion that housing lo an is creating a bubble. Substantial progress made by banks in cleaning up the NPAs from their balance sheets, was largely attributed to SARFAESI Act and incr eased provisioning on Doubtful debts by majority of survey respondents. Absenc e of Secondary Market for the trading of security receipt issued by ARCs was ide ntified as one of major problem in Indian Model of NPA management. Separate NP A norms for the farm and the SME sector were recommended by large number of resp ondents. Survey on Status of Indian banking Industry – Progress & Agenda ahead 3 96 percent of all banks claim that the current growth of non-food credit is s ustainable for about 3-5 years. Detailed information on banks sectoral exposur e of credit reveals that over two-thirds of the credit flow has been on account of retail, housing and other priority sector loans. Banks credit flow exposure t o large Enterprises continues to remain buoyant with recent indications that cre dit to agriculture and Micro credit has also picked up. 16

71 percent of our survey respondents did not consider SMEs as an avenue of for ced lending. Company Profile 17

History Vijaya Bank, a medium sized bank with presence across India was founded on 23rd October 1931 by the late Shri A.B.Shetty and other enterprising farmers in Mangalore, Karnataka in India.. The objective of the founders was essentially to promote banking habits, thrift and entrepreneurship among the farming commun ity of Dakshina Kannada district in Karnataka State. The bank became a scheduled bank in 1958.Vijaya Bank steadily grew into a large All India bank, with nine s maller banks merging with it during the 1963-68. The credit for this merger as w ell as growth goes to late Shri M.Sunder Ram Shetty, who was then the Chief Exec utive of the bank. The bank was nationalised on 15 April 1980. Growth and Nation alisation Vijaya Bank grew steadily by merging nine smaller banks into it betwee n 1963-68. Shri M.Sunder Ram Shetty, who was then the Chief Executive of the ban k is largely credited with these mergers. The bank was nationalised on 15 April 1980. Branches The bank has built a network of 1065 branches,45 Extension Counte rs and 352 ATMs as at 03.01.2009, that span all 28 states and 4 union territorie s in the country. Thrust on Information Technology The Bank has chosen Finacle f rom Infosys as centralized banking solution. In line with the prevailing trends, the bank has been giving greater thrust towards technological upgradation of it s operations. The bank has network of 1101 branches, 43 Extension Counters and 3 64 ATMs. All 1101 branches, 37 extension counters, 12 service branches are funct ioning on CBS platform, and at 703 centers, covering 100 % of Bank s business. 18


Realising your constantly evolving and diverse needs, the bank has diversified t oo. Entering several new areas such as credit card, merchant banking, hire purch ase and leasing, and electronic remittance services. 1031 - Branches /offices ar e under RTGS and 1030 - Branches / offices are under NEFT Vijaya Bank is one amo ng the few banks in the country to take up principal membership of VISA Internat ional and MasterCard International. The driving force behind Vijaya Bank s every initiative has been its 12107 strong dedicated workforce. Area of corporation After obtaining the certificate of incorporation and certifi cate of commencement and getting the draft of the memorandum of association and articles of association approved, Vijaya bank Ltd., started functioning as per t he provision of Indian companies act in a small bungalow with a tiled roof (Mang alore tiles) on Kadri road in Mangalore. Background Type Founded : : Public BSE: 532401 1931 at Mangalore, India. Bangalore, India Albert Tauro, Chairman & Mana ging Director Financial Commercial banks 12,107 Headquarters : Key people Industry Employees Website : : : : 19


Organisational set up of bank as per 1931 Organisational set up of the bank as per 2009 Products & Services Deposit Schemes 1. Savings Bank 2. V Platinum Savings Bank Account 3. Vijaya Sar al Savings 4. Current Account 5. VStar Savings Scheme 6. Term Deposit 20

Loans & Advances 1. Retail Lending Schemes 2. Loans Against Securities 3. Non Fu nd Based Facilities 4. Advances to Agriculture, SSIs and Others 5. Government Sp onsored Schemes 6. Special Schemes for Women NRI Services 1. Deposits 2. Loans Remittances 3. FOREX Branches 4. FCNR(B) Branches 5. Helpline for NRIs Remittance Collection and Facilities 1. FOREX Remittances 2. Inland Remittances 3. Electronic Remittance Services 4. Inward / Outward Collection Instruments Cre dit Cards 1. Domestic Cards 2. Global cards 3. Debit cards Forex 21

1. FOREX market Information 2. Card Rates 3. Treasury Other Services 1. Merchant Banking 2. Vijaya Rakshak 3. V-Arogya Bima Policy 4. Credit Cards 5. Mutual Funds 6. Leasing 7. Hiring 8. Purchases Competitors of Vijaya bank Canara Bank. Corporation Bank. HDFC Bank Ltd. ICICI B ank Ltd. Indian Bank. IndusInd Bank Ltd. Karnataka Bank. ING Vysya Bank Ltd. 22

Syndicate Bank. State Bank of India. Janatha corporative Bank. Financial analysis of Vijaya bank Ratio Analysis 31As on Profitability Interest Income/Total Income (%) Non Intere st Income/Total Income (%) 11.77 12.04 8.87 88.23 87.97 91.13 Mar-09 31-Mar08 31 -Mar-07 23

Reported Net Profit/Total Income (%) Net Interest Income/Total Income (%) Net In terest Margin (%) Return Related ROE (%) (PAT/share cap+res)*100 ROA (%) 8.34 0. 42 Leverage & Capital Measures Customer loans/deposits (%) Investments/Deposits (%) Total Liabilities/Networth 26.91 26.67 22.88 31.88 34.65 31.96 65.04 66.08 6 4.42 14.69 0.64 17.47 0.78 18.95 3.17 18.78 2.62 34.6 4.42 4.42 8.17 10.7 Growth (%) Growth in Interest Income Growth in Interest Expenses Growth in Emplo yee cost Growth in PAT 47.55 -3.26 9.03 3.51 161.15 24 34.48 74.65 30.78 34.7 37 .74 22.12

Growth in Deposits Growth in Borrowings Per Share Book Value Per Share (Rs) Earn ings Per Share (Rs)(PAT/no of shares) Dividend Per Share (Rs)(Dividends paid/ no of equity shares) 13.73 -27.52 868.44 35.71 -48.1 43.2 42.7 6.05 8.33 7.64 ---Result of Financial analysis PROFITABLITY- Though being a season of recession th is year the company has ended up with a net profit ratio of 4.2 which is nearly half to the last year’s ratio. It could be considered fair till than but if see the balance sheet there has been a considerable increase in the fixed assets to 10010.79 from 1861.77 which means that there should be increase in the number of buildings and branches that should lead to more number of branches and more num ber of accounts but besides this there are no signs of improvements in profit so the profitability of Vijaya bank could be rated FAIR. RETURNS-Share capital and reserves have increased in this year considerably this shows a good sign of market value and after considering environmental condition s we can also see that the profit earned after tax this year was lesser than of the previous year so the returns can be rated as GOOD. LEAVERAGE- The leverage r atio can be considered doing well as much down fall is not observed and so it ca n be considered or rated VERY GOOD. 25

The bank’s market value is seem to be increasing and though the returns are less but the expenses have also fallen to a large extent so Vijaya bank can be rated overall as VERY GOOD 26

Data analysis and findings Analysis of the survey: Karnataka. The survey was done with an objective to find the marketing and promotional activity of some of the randomly selected branches in D.K distri ct of Vijaya bank like any other national bank has various services like Vijaya tax sa ving scheme, v-Rakshak, v-gen etc which is focusing on each and every age group and social class of the society. Vijaya bank as was started by a group of agricu lturists, as a bank of agriculturists. It is still focusing on the priority sect or. The survey was guided throughout by Mr.K.Ganesh Acharya a bank manager in Vi jaya bank, who brought to my (surveyors) notice that bank, is following a social concerned practice in the rural banking area. The questionnaire prepared for th e survey mainly was with a primary objective of finding the important banking ac tivity and business practices in the bank as a whole. Efforts were made to under stand the relationship between the main bank and its branches also the bank 27

and customers relationship, where Mr.Shetty Durgaprasad.D (surveyor) had visited some of the customers personally and took their valuable inputs. The questionna ire prepared was only given to the bank managers and the surveyor had even refer red the banks platinum jubilee book which was published in 2006 to understand th e banks history and progress till date. The survey also was done on the basis of comparison of service between Vijaya bank and State bank of India both Kinnigol i branch to find out the customer attending service which was done by Mr.Shetty Durgaprasad.D (surveyor) who personally visited both the bank and saw two extrem ely different kind of service. Findings from the survey: The questionnaire prepared for the survey mainly was w ith a primary objective of finding the important banking activity and business p ractices in the bank as a whole. Efforts were made to understand the relationshi p between the main bank and its branches also the bank and customers relationshi p, where Mr.Shetty Durgaprasad.D (surveyor) had visited some of the customers pe rsonally and took their valuable inputs. It was very surprising to find that the bank does not believes in video advertisements and opts moreover for pamphlets and billboards though the pamphlets are designed in a very catchy manner in such a competitive era it is necessary to have a video advertisements. The promotion al activity is versatile where the bank is much focusing on service design and c orporate social responsibility. The bank also focuses on the customer relationsh ip where each and every customer is been personally attended and also sometimes recognised. Throughout the analysis it was very clear that the bank was much foc using on retaining the customers and making more customers by its warm and carin g customer attending service. 28

The design of pamphlets was very much clear, concise, and complete where the eff orts to give maximum knowledge regarding a particular service where made. Even i t was found that many of the people were migrating from other banks to Vijaya ba nk especially for the competitive benefits given in some of the schemes like vcc , Jeevan Nidhi deposit scheme.When asked with the managers they said that servin g the people is main objective. The bank has also taken step to educate and trai n the school children and the rural people regarding banking through its extensi on. The managers put forth their views that proper and complete training should be given to the senior work force regarding computerized banking.It was even cle ar that the employee satisfaction and Job satisfaction was present and the bank was making its employee as a potetional advertisers of their organisation by the ir total service motive. The Bank is practicing its tag line very well which is “A friend you can Bank up on” Surveyors input: The major findings were that the bank is lagging behind in video advertisements and it has a tough competition from the corporation and syn dicate bank. The bank is much more customer service oriented and the workforce p resent is much impressive. The product profile of the bank is also impressive wh ere it is covering all the sections and places in the society. It is also the se cond bank in India to start with the mobile banking system, which has a good cus tomer response. The NPA ratio was fair in all the branches as consulted in the r esearch and its increasing number of branches across India was showing the progr ess of the bank. As a management student and also the customer of the bank the m ain suggestion would be that the bank should go for an effective video advertise ment as people would come to know more about the bank. The bank should also conc entrate in some of institutional tie ups to gear the business. The workforce pre sent is very much effective but optimum utilization was lacking cause training i n the use of computers was very less among the senior level officers. The promot ional activity has to be more stressed upon cause of the tough competition from other banks. The major problem in this particular bank is that some of the very 29

impressive and potetional offers and schemes like the V.C.C, V-gen and tax savin g scheme is being unnoticed in the market even the banks prime customer lack kno wledge about such services present in the bank so the bank should much concentra te in making the public realize the efficiency and potetional of such products t hrough various promotional activity. Conclusion As a leading bank in the banking industry Vijaya bank should not neglect the pro motional activities at all in its activity towards making business as promotiona l activity is necessary in any business so that the society and customer would k now about the benefits of the service and that are influenced to buy. Financial institutions should also pay attention to political environment and labour condi tions of the area where if any potetional project is to be located. Strikes, Loc kouts, Industrial Peace and Communal Harmony in the area play a decisive role in examining success or failure of the project. Market and environmental analysis is much more of importance before launching any of the service so Vijaya bank sh ould also foresee the exact market segment for each of its product cause many of the schemes are only suitable to a particular location and class of people. 30

Also we should consider the slowdown in the economy due to the recession as bank s suffered the most during this time but Vijaya bank was able to maintain the bu siness throughout. The bank is also having a good workforce and also is recruiti ng fresh employees which mean it is creating opportunities for growth in the inc ome per person in country. Vijaya bank can also be look upon as a bank which is functioning as a social business entity cause of its interest taken in educating people and students in banking with the help of its extension. Annexure 31

Income Statement 31-Mar-09(12) Profit/Loss A/C Interest Income Earned Commission , Exchange and Brokerage Income Lease Income Dividend Income Miscellaneou s Inco me Other Income Total Income (OI) 1288.03 0 0 5700.07 6988.1 59366.36 2.17 0 0 9 .6 11.77 100 838.19 0 0 3533.35 4371.54 44205.68 1.9 0 0 7.99 9.89 100 664.66 0 0 2083.23 2747.89 30979.01 2.15 0 0 6.72 8.87 100 32 52378.25 88.23 39834.15 90. 11 28231.12 91.13 Rs. mn %OI 31-Mar-08(12) Rs. mn %OI 31-Mar-07(12) Rs. mn %OI

Interest Expenditure Employee Expenditure Depreciation Other Operating Expenditu re 2902.49 4.89 2655.59 6.01 2184.48 7.05 41130.24 5974.69 369.81 69.28 10.06 0. 62 30584.18 4049.16 307.99 69.19 9.16 0.7 17511.62 3921.39 401.31 56.53 12.66 1. 3 Provision and Contingencies Total Expenditure Pretax Income Tax Extra Ordinary a nd Prior Period Items Net Net Profit Adjusted Net Profit Dividend Preference Div idend Equity 0 2624.8 2624.8 0.96 507.19 0 4.42 4.42 0 0.85 0 3612.78 3612.78 0 1014.39 0 8.17 8.17 0 2.29 0 3313.45 3313.45 0 1001.51 0 10.7 10.7 0 3.23 3574.1 2 53951.36 5415 2790.2 6.02 90.88 9.12 4.7 3832.88 41429.8 2775.88 -836.9 8.67 9 3.72 6.28 -1.89 3482.68 27501.47 3477.54 164.1 11.24 88.77 11.23 0.53 33

Balance Sheet 31-Mar-09 Equity Capital Preference Capital Share Capital Reserves and Surplus Deposits Borrowings Other Provisions and Liabilities Capital and Li abilities (BT) Fixed Assets Investments Advances Cash & Money at Call Other Curr ent Assets Properties and Assets 13613.62 633262.5 81079.95 621490.84 10010.79 1 73877.03 354681.11 40786.41 2000 5000 7000 22157.77 545354.25 6192.42 %BT 0.32 0.8 1.13 3.57 87.75 1 31-Mar-08 2000 0 2000 20255.32 479520.13 19188.72 %BT 0.36 0 0.36 3.62 85.7 3.43 31-Mar-07 4335.18 0 4335.18 14631.59 376044.99 1981.4 %BT 1.02 0 1.02 3.45 88.78 0.47 6.56 38543.74 6.89 26581.76 6.28 98.14 1.58 27.46 56.01 559507.92 0.46 166173.2 316892.16 100.49 0 29.85 56.92 423574.92 1861.77 120184.05 242235.52 100 0.44 28.37 57.19 12.8 60973.63 10.95 50701.23 11.97 2.15 100 12725.89 556765.34 2.29 100 8592.35 423574.92 2.03 100 34

(BT) Questionnaire 1. Which sector does your branch gives importance? a. Priority sector b. non-pri ority sector. 2 what kind of loan is more availed by the public from the bank? 3. What kind of promotional activity is undertaken by the branch and the bank? 4. What kind of delegation of authority is given to you as branch manager? 5. Did the branch go for any tie ups till date? Specify? 6. What kind of workforce is present in the branch? 7. Is there any promotional activity taken by the branch recently? 8. Ho w often do people migrate from other bank to your banking service? 9. What kind of competition is the branch facing? 10. Which scheme of the bank is doing expre ssively well? Why? 11. How often the regional or the main branch official would be visiting the branch? 35