MBA Project Report

On

Business Development Opportunities for

IDBI Bank Ltd.,Dhamnod Branch

By

Prini Patidar
University Reg. No. :

Under the guidance of

Shri. Brajendra Kumar Sharma

Manager & Branch Head

IDBI Bank Ltd, Dhamnod ,Madhya Pradesh

 Certificate

This is to certify that this project entitled “Business Development Opportunities

for IDBI Bank Dhamnod Branch” that has a significant impact on
business/customer service of the branch is a bonafide work carried out and
developed by Prini Patidar in partial fulfillment for the 2 year classroom cum
training program of MBA at IDBI CDGI. This is also to certify that this project is the
result of candidate’s own work and is of sufficiently high standard to warrant its
submission to the University for the Award of the said degree. The assistance and
help rendered to him during the course of his project work in the form of basic
source material and information have been duly acknowledged.

Certified By:

(Shri. Brajendra Kumar Sharma)

Manager and Branch Head
IDBI Bank Ltd
Dhamnod Branch, Sol Id- 1817
 Acknowledgement

I present this project on “Business Development Opportunities for IDBI Bank

ltd.,Dhamnod Branch” in IDBI Bank, with a sense of great pleasure and

sati sfacti on. I wish to extend my gratitude towards Shri. Brajendra Kumar

Sharma, Manager and Branch Head, IDBI Bank Ltd, Dhamnod Branch, for his co-

operation, consistent guidance and valuable suggestions in various aspects of this

project work. I undersign with pleasure take this opportunity to thank all those

related directly or indirectly in preparation of this project report. I started working

on this project under the invaluable guidance of Branch Staff for which I am very

much thankful for their valued time given for the purpose. Without their co-

operation my project would have been difficult to complete. I would also like to

thank my institution CDGI and my faculty members without whom this project

would have been a distant reality.

Prini Patidar
Date: 30th September,2021
IDBI Bank Ltd.
Dhamnod Branch
 Table of Contents
Contents

Abstract

1. Chapter 1: Executive summary

2. Chapter 2: History

2.1 Brief Introduction of IDBI

3. Chapter 3: Introduction

3.1 Objective of the Study

3.2 Scope and Methodology

4. Chapter 4: Study

5. Chapter 5: Product analysis

5.1 Branch profile

5.2 Structure of branch

6. Chapter 6: Different analysis

6.1 Market analysis

6.2 SWOT analysis

6.3 General analysis

7. Chapter 7: Findings

8. Chapter 8: Recommendations

9. Chapter 9: Conclusion

References
 Chapter 1

Executive summary

This case study examines the development of the IDBI Bank, Dhamnod Branch.
Customer Service Strategy as a total business concept. It illustrates how
developing and integrating the Customer Service Strategy across the business
helps this Branch to position itself for further growth. Financial Reforms with
specific reference to Indian Banking Industry focusing on implications to the
existing customers, new entrants, multinationals and consumer behavior.
Responses to challenges with reference to restructuring, automation, product
delivery and process reengineering. Consumer expectations, feedback, cross
selling, customer relationship management (CRM), market segmentation,
marketing, branding and new products introduction. The Indian Banking Sector is
at an exciting point in its evolution. The opportunities to enter new business and
new markets and to deliver higher levels of customer service are immense. Banks
have adopted better operational strategies and upgraded their skills. They have
withstood the initial challenges and have become more adaptive to the changing
environment. To give the customer an optimum blends with technology and
traditional service. Customer service is one of the most important ingredients of
the marketing mix for products and services.
 Chapter 2

History

Industrial Development Bank of India

Industrial Development bank of India (IDBI) was constituted under Industrial
Development bank of India Act, 1964 as a Development Financial Institution and
came into being as on July 01, 1964 vide Govt. of India notification dated June 22,
1964. It was regarded as a Public Financial Institution in terms of the provisions of
Section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years
till the year 2004 when it was transformed into a Bank.

Industrial Development Bank of India Limited:

In response to the felt need and on commercial prudence, it was decided to
transform IDBI into a Bank. For the purpose, Industrial Development bank
(transfer of undertaking and Repeal) Act, 2003 [Repeal Act] was passed repealing
the Industrial Development Bank of India Act, 1964. In terms of the provisions of
the Repeal Act, a new company under the name of Industrial Development Bank
of India Limited (IDBI Ltd.) was incorporated as a Govt. Company under the
Companies Act, 1956 on September 27, 2004. Thereafter, the undertaking of IDBI
was transferred to and vested in IDBI Ltd. with effect from the effective date of
October 01, 2004. In terms of the provisions of the Repeal Act, IDBI Ltd. has been
functioning as a Bank in addition to its earlier role of a Financial Institution.

Merger of IDBI Bank Ltd. with IDBI Ltd. 

Towards achieving the faster inorganic growth of the Bank, IDBI Bank Ltd., a
wholly owned subsidiary of IDBI Ltd. was amalgamated with IDBI Ltd. in terms of
the provisions of Section 44A of the Banking Regulation Act, 1949 providing for
voluntary amalgamation of two banking companies. The merger became effective
from April 02, 2005.

Merger of United Western bank with IDBI Ltd. 

The United Western bank Ltd. (UWB), a Satara based private sector bank was
placed under moratorium by RBI. Upon IDBI Ltd. showing interest to take over the
said bank towards its further inorganic growth, RBI and Govt. of India
amalgamated UWB with IDBI Ltd. in terms of the provisions of Section 45 of the
Banking Regulation Act, 1949. The merger came into effect on October 03, 2006.

Change of name of IDBI Ltd. to IDBI Bank Ltd.

In order that the name of the Bank truly reflects the functions it is carrying on, the
name of the Bank was changed to IDBI Bank Limited and the new name became
effective from May 07, 2008 upon issue of the Fresh Certificate of Incorporation
by Registrar of Companies, Maharashtra. The Bank has been accordingly
functioning in its present name of IDBI Bank Limited.

Post 2004 merger of the erstwhile IDBI bank with its parent company (IDBI ltd),
IDBI is now a universal bank. The merger was aimed at consolidating business
across the value chain and reaping the benefits of economies of scale, thus
enabling it to offer an array of customer-friendly service to its existing and
prospective clients. Today IDBI is the 10th largest development bank in the world
in terms of reach with 13722 + ATMs,1899 branches including one Overseas
branch in Dubai and 12122 centres including two Overseas centres at Singapore
and Beijing. The Bank has an aggregate balance sheet size of 3.71 Trillion as on
March 31, 2016.
On 21st January 2019 Life Insurance Corporation of India (LIC) has increased its
stake in IDBI Bank to 51%.

At present, IDBI Bank Ltd. has become a joint venture of LIC of India & Govt of
India.
 Chapter 3

Introduction

“It is not the employer who pays the wages. Employers only handle the money.
It is the customer who pays the wages.”
Good customer service is the lifeblood of any business. You can offer promotions
and slash prices to bring in as many new customers as you want, but unless you
can get some of those customers to come back, your business won't be profitable
for long.

“Know Your Customer” is not compliance issue but our Survival Kit. The KYC
should not be understood in narrow sense but in the sense of customer’s
potential for canvassing business or potential risks for safeguarding our exposure.
KYC (Know Your Customer) and KYCR (Know Your Customer’s Risks) are mantras
for success for every branch. Therefore, every interaction with the customer,
every activity, every initiative, every plan should revolve around the basic tenet of
knowing and understanding the customers and continuously reorienting ourselves
to satisfy their present and future needs in an efficient and profitable manner.

Four trends: Consolidation, Globalization of operations, development of new

technologies and globalization of banking. The emerging competition has
generated new expectations from the existing and the new customers. There is an
urgent need to introduce new products. Existing products need to be delivered in
an innovative and cost – effective way by taking full advantage of emerging
technologies.

Currently, there are two types of customers – one who is a multi-channel user
and the other who still relies on a branch as the anchor channel. The primary
Challenge is to give consistent service to customers irrespective of the kind of
channel they choose to use. The channels broadly cover the primary channels of
branch (i.e., teller, platform, ATM) phone banking, (i.e., call centre, interactive
voice response unit), and internet channel (i.e., personal computer, browser,
wireless). A retail customer selects a bank based on two criteria – convenience
and relationship and would continue with a bank if it provides good service. A
customer would leave a bank if its services manifested errors, long wait, and
inconsistent information. For customers who are multi-channel users, consistent
information across all channels is the key requirement of modern retail banking.

Banks in will now have to work towards a vision to have an enhanced Retail
delivery system. Such a system would include transformed branches, enhanced
telephone services, and leading-edge internet banking functions that provide a
consistently positive multi-channel experience for the customer.

The landscape of the banking industry underwent Considerable changes during

the last decade. The industry Witnessed:

• Deregulation of lending and deposit rates.

• Entry of new private sector banks.
• Extensive use of technology for product innovation and delivery.
• Emergence of retail banking and new derivative products.
• Strict provisioning and asset classification norms.
• Raising capital adequacy requirements.
• Requirements for better risk management practices and capital allocation of
various risks.
• Increased disclosure requirements.

Some of the challenges that the banks are facing today are:

• Changing needs of customers.

• Coping with regulatory reforms.
• Thinning spread.
• Maintaining high quality assets.
• Management of impaired assets.
• Keeping pace with technology up gradations.
• Sustaining healthy bottom lines and increasing shareholder value.

Banks are setting up alternative delivery channels to contain operating costs like
off-site ATMs, internet banking, tele-banking, outsourcing, centralized transaction
processing, etc.

Services at IDBI Bank Branches

All CBS branches are inter-connected with each other. Therefore, Customers of
CBS branches can avail various banking facilities from any other CBS branch
located anywhere in the world. These services* are:

 To make enquiries about the balance; debit or credit entries in the

account.
  To obtain cash payment out of his account by tendering a cheque.

 To deposit a cheque for credit into his account.

 To deposit cash into the account.

 To deposit cheques / cash into account of some other person who has
account in a CBS branch.

 To get statement of account.

 To transfer funds from his account to some other account – his own or
of third party, provided both accounts are in CBS branches.

 To obtain Demand Drafts or Banker’s Cheques from any branch on CBS –

amount shall be online debited to his account.

 Customers can continue to use ATMs and alternate Delivery channels,

which are also interfaced with CBS platform. Similarly, facilities like Bill
Payment, Tax payment etc. are also continue available. Bank has
launched Internet-banking, Mobile Banking facilities for better customer
service in IDBI Bank.

All these aim to provide convenient, efficient, and high quality banking experience
to the customers, comparable to world class standards.

A CBS branch is like a Sales & Service Delivery Center. Back office
processes/activities are handled through technology at some other site, called
Data Center. Branch, therefore, has more time for serving customers. This
improves the quality and efficiency of the services rendered and the customer is
directly benefited by way of satisfying and happy banking experience.

Since a CBS branch is essentially designed to focus on customer-interface and

customer service, the special lay-out and ambience of the branch is made to
provide a convenient and delightful banking experience. The Customer Service
Representatives / Executives at the branch are specially trained to understand,
facilitate and deliver banking services efficiently and effectively.
 Chapter 4

Study
Banking Industry is one of the most important service industries which touch the
lives of millions of people. In today’s date banking industry has become very
competitive and the organizational framework has totally changed. The Dhamnod
Branch where I am doing my internship has a competitive framework. It works on
three basic principles i.e.

1. Having a total view of Customer needs.

2. Meeting the identified needs in the best possible manner.

3. Identification of potential Customers.

Retail banking means mobilizing deposit from individuals and providing loan
facilities to them in the form of home loans, auto loans etc, is becoming popular.
This used to be considered by the banks as a tough proposition because of the
volume of operations involved. But during the last couple of years or so, banks
seem to have realized that the only sustainable way to increase deposits is to look
at small and middle class consumer retail deposit and not the price sensitive
corporate depositors. With financial sector reforms gathering momentum, the
banking system is facing increasing competition from non-banks and the capital
market. More and more companies are tapping the capital market directly for
finance. This is one of the main reasons for the banks to focus vigorously on the
much ignored retail deposits.

As the branch is situated in a business oriented place it has got current account of
most of the business establishments which is very good for the organization but
on the other hand opening of new current account has become a problem as the
market segment has become saturated because of ample presence of banks.
 The branch also tried to solve the problem by going to other areas by sending
officers to do door to door marketing about its retail banking products with
variants of our Savings account has become the talk of the town. Banks are
running to increase their savings account deposit to the maximum. In this regard
Dhamnod Branch has taken initiative to open the salary account of most the
business houses situated in the locality. Our branch has thought of going to the
customer then to wait for the customer to come to the branch. Our marketing
officers take utmost initiative to give the best possible service to the customer as
promised. They try to educate the customer about the various types and
advantages of our savings account.

Loans are one of the main sources of income for the banks. Taking deposits from
the customer at a low interest and providing loans to them at higher interest
rates brings in the income to the branch. Here also our branch is also inclined to
provide good loans to the customer. In this regard our branch has decided that
we should entertain only those loans which will be safe and the branch should not
incur any loss. Our branch strives in providing Education, Car and Housing Loans.
Our branch also provides Overdraft and Cash Credit Facilities to our customers.

Fixed and Recurring Deposits are also a main source of deposits for the branch.
Our branch is also focused in increasing these deposits. Our branch also
understands that by increasing fixed and recurring deposits we are not only
increasing the deposits of the bank but also increasing the customer base of the
branch and thereby there is a scope of cross selling.
 Chapter 5

Branch analysis
Branch profile:
IDBI Bank Dhamnod branch is situated near Maheswar Fata, Dhamnod, M.P

Bank Name: IDBI Bank

Branch Dhamnod, M.P

Name:
Address: Maheswar Fata, Dhamnod, M.P
City: Dhamnod
District: Dhar
State: Madhya Pradesh

Phone:

Email: IBKL0001817@idbi.co.in
MICR Code
IFSC Code: IBKL0001817
Website: http://www.idbibank.in
Name of Branch Dhamnod Branch

Sol ID 1817
Region Indore

Zone Bhopal

Area classification Semi-Urban

Services / Facilities available
 Deposit products

 Credit products

 Remittance

 Safe Deposit Vault

 Safe Deposit Locker

 ATM

 Investment advisory

 Third party products

 Demat Services

Business profile (Amount ) Rs.(As on 31-03-2019)

Total deposits
₹14.9 crore

 CASA:₹12.3 crore

Total Advances ₹9.5Crore

 Structure of the branch

CSE / TSE : Asset Oficer : SOM :

BH :Manager
AMs Manager Asst.Manager
 Chapter 6

Market analysis

IDBI Bank Dhamnod is located in the heart of the city. The branch is located in the
Dhamnod city with proximity to the rich heritage of Devi Ahaliya bai historical
Maheswar palace. The branch was opened in 2016 when the cotton nad soyabean
seeds processing business was at its peak. There has also been a steady increase
in the number of business establishments, merchants and traders in this area.

SWOT analysis of the branch

It is an analysis which depicts the true position of the firm in terms
of Competition and prepares the firm for future endeavors.

It starts by Stating the 

 Strengths(S) on which the Company can bank upon and moves forward
followed by
 Weakness (W), which they need to cover under the belt of Strengths, then 
 Opportunities (O) which the companies can grab from the mouth of
the competitor  
 Threats (T) which act as a Warning Signals from their rivals.

SWOT Analysis is prepared on the basis of results arrived from different Statistical
techniques. Techniques include: 
  Interviews,
 Expert Opinions,
 Pilot Surveys and
 Customer Feedback and Secondary sources

Findings under each of the head of the Analysis are:-

 Strengths
 Advantages Bank/Branch have:
 Located at Prime Area
 Brand Image
 High Percentage of CASA Deposits and advances
 Number of IT Companies situated near to branch

 Weakness
 Factors responsible for the loss of sales/revenue:
 High Cash flows
 The technical Problems for Bank/Branch which creates dissatisfaction in
customers:
 Network failures

 Opportunities:
 Good opportunities in Bank/Branch way:
  Huge existing customer base
 Old Business
 Good Banking Habits of customers
 Business area is well developed
 Improved demographical condition of area provides a great chance to
enrich its various product basket.

 Threats
 Presence of the Competitors:
 Big players situated in the vicinity
 Increasing competition
 With the emergence of larger number of players in the Banking
Industry, the switching cost of the buyer has gone down significantly.
The stress is now on the effectiveness and speed with which the
services are provided to the customers.
 General analysis

 As per my analysis I analysed that out branch “Dhamnod Branch” is located

in the prime area of capital city of Odisha which provides a good
opportunity of tapping into the prime customers in the area. There is a
huge presence of ginning factory in the area with customers from which
we can obtain a good share of wallet. We also have shops from which we
can obtain good business.

 Near to Branch there are ample numbers of big traders, dealers to whom
we can give a Term loan, Cash Credit. We can approach these potential
customers and asked them to open a current account which helps to
enhance our CASA deposits to increase.

 Our branch is situated in business oriented area, there are many big
companies and they are our be most valuable customers. But still there are
many more companies So We can approach these companies and asked
them to open current account and saving account for their employees.
Thus increasing CASA deposits.

 Another privilege for the branch is that it is located near by the good
societies where the branch can get good HNI potential customers.

 As many of our customers are HNI, So we can approach them for third
party products to increase our business.
 Chapter 7

Findings
The Dhamnod Branch is one of the cash rich area branches in the Indore Region.
Along with this distinction comes responsibilities i.e. a large customer base, high
expectation and a lot of pressure. The things that I have found working in this
branch are as follows.

1. Databases on credit history are large.

2. Operating efficiency level needs to be very high.

3. Unlike corporate banking, retail banking involves a large number of small

accounts.

4. Demands on processing capabilities are higher.

5. Retail segment is not something you can get into overnight.

6. The right systems and the right – architecture needs to be put in place first.

7. People should be assigned individual roles so as not to burden officers with

various works at the same time.

8. Officers should be given up to date product knowledge.

9. Customer enquiry system should be put in place.

10.Proper marketing of the products should be carried out.

11.Officers are going out on the road to promote the savings as well as the
current accounts.
12.Officers have taken initiative to open 30 savings accounts in two months.

13.Apart from this the marketing officers are also trying hard to sell the gift cards.

14.Officers have also taken an additional responsibility to sell Life Insurance

Products in addition to the savings account.
 Chapter 8

Recommendations

 Executives should be appointed so that they can reduce the work load of
officers
 The DST team should be expanded in order to attract more sales in the field
especially in insurance
 Modernization of computer terminals with more storage capacity and fast
operating system for more effective and fast transaction.

 Additional counter for passbook printing

 More number of training and educati onal programs should be included

in Banks schedule.

 All the services of the bank should be clearly communicated to the customers

 Customers are the king so proper care should be taken while dealing with
them.

 Marketing personnel should be inducted in branch for more canvassing

about the products to customers which results in more profitability

Following are the Staratagies :

 In addition to CASA deposits, we have to increase our retail time deposits to
mobilize long term resources. The should be continued emphasis on
canvassing term deposits of higher maturity.

 Within term deposits, recurring deposit must be provided necessary boost

by regularly launching special campaigns for mobilizing recurring deposits.

 Our customer is a rich source which can be harnessed for cross selling other
products,seeking feedback on quality of customer service, obtaining
referrences of new customers etc.

 One strategy for growth would be strengthening existing relationships, i.e.

going for bigger share of existing good customers business by proactive and
quicker sanctions. At the same time, we have to protect our share being
taken away by competitors or fresh business of our customers being
offered to / taken by others banks.This would be achieved by maintaining
constant touch/ discussion with borrowes about their future plans.

 The opportunities available in the area of Agri banking can be gauged from
the fact that India is the largest producer of fruits and vegetables in the
world.Bringing these areas under irrigation will open opportunities for
financing as the credit absorption capacity of irrigated farms increases
manifold.We need to plan including branch expansion in rural ares as well
as use of Business Facilitators.

 We will have to think differently and evolve a suitable banking model which
will cater to banking, insurance and fund transfer requirements at these
centres. Financial inclusion should be pursued as a business opportunity
rather than a social commitment.

 The usage of e-banking of tax collection has opened exiciting opportunities

for each of our branches to earn more from each account it maintains. The
activities like pension payments, State Treasury, Railway and postal deptt.
are now offering good opportunities for each branch to earn additional
revenue. There is a need to take necessary initiatives to create awareness
 amongst staff with regard to the profitability of the govt. business in
general and Pension accounts.

 With the implementation of CBS across the bank in India, the expectations
of customers have increased manifold. The multiple delivery channels are
gaining pace and prominence in the country. Each and every branch should
endeavour to popularise the e-business facility amongst the clients to make
them net savvy.

 Credit Risk is an integral part of banking operations but there is no pass

through available to transfer the entire risk to Customer/ Risk agencies. Our
endeavor should be to adopt risk mitigation techniques so that slippages
can be avoided in the fist place. But when faced with NPAs, we should not
hesitate to employ all the tools of recovery that are at our disposal.With a
centralized data base every transaction can be monitored on a real time
basis at any controlling office level.

 Effective tools of rendering high quality Customer Service – Always provide

prompt and hassle free service to our customers.

 Educate the customers about our products and utilities particularly

electronic delivery channels and e-products.

 Promptly and comprehensively redress any customer complaint under

advice to the complaint.

 Seek guidance from higher office without much loss of time.

 Make full use of the Bank’s various IT initiatives to enhance customer

satisfaction and convenience.

 Branches may devise innovative ways of making the customer’s waiting

time less stressful by providing compfortable seating arrangements,etc.
 Summing up

Our objective is to make IDBI Bank, the ‘’To be the most preferred and trusted
bank enhancing value for all stakeholders’. For achieving this objective we have
adopted a Business Model that focuses on Sustainable Growth. This model has
four pillars- Healthy CASA, well diversified Advances Portfolio, Strong back up of
Non- interest income and Stringent NPA management. Implementation of this
model needs dedicated contribution from all branches across all cadres of
employees.
 Chapter 9

Conclusion

My experience with IDBI Bank is outstanding. While doing my internship in IDBI

Bank. I found that this bank has developed manifold in short period of time due to
facilities and services provided to their customer and this growth rate can be at
the same pace if they start to go in semi-urban areas. In last couple of years they
have opened many new branches and they should open many more.
IDBIans provided best customer service and because of which IDBI Bank is one of
the leading banks with a customer base of more than 7 million. The promotion of
electronic remittances delivery should be further improve and bank’s strategies of
promoting with minimum charges to be popularized.

While technology, branch network, products and pricing are more or less same
across all banks, what differentiates one bank from other is the quality of
customer service. Customers’ expectations always move at a faster pace than the
service delivery standards. This is one area which needs continuous improvement.

Better CUSTOMER SERVICE -The strength of IDBI Bank and especially this Branch

WAY TO GO IDBI…..

I DREAM BIG FOR INDIA