INTRODUCTION TO THE INDUSTRY

1.1.1 INTRODUCTION TO INDIAN BANK INDUSTRY

Banking in India originated in the first decade of 18th century with The General Bank of India coming
into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct.
The oldest bank in existence in India is the State Bank of India being established as "The Bank of
Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started
their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port,
mainly due to the trade of the British Empire, and due to which banking activity took roots there and
prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in
1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private
ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian
banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and
given broader powers.

1.1.2 HISTORY

In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC). Later during the
Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was an order on a
banker desiring him to pay the money of the note to a third person, which corresponds to the definition
of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use
of these instruments. Merchants in large towns gave letters of credit to one another.

ORIGIN OF THE WORD “BANK”

The name bank derives from the Italian word banco "desk/bench", used during the Renaissance by
Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth.
However, there are traces of banking activity even in ancient times.

In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set
up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from
which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so
much invest money as merely convert the foreign currency into the only legal tender in Rome—that of
the Imperial Mint. The earliest evidence of money-changing activity is depicted on a silver drachm coin
from ancient Hellenic colony Trapezius on the Black Sea, modern Trabzon, and c. 350-325 BC,
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presented in the British Museum in London. The coin shows a banker's table (trapeze) laden with coins,
a pun on the name of the city. In fact, even today in Modern Greek the word Trapeze (Τράπεζα) means
both a table and a bank.

A bank is licensed by a government. Its primary activity is to lend money. Many other financial
activities were allowed over time.

The level of government regulation of the banking industry varies widely, with counties such as Iceland,
the United Kingdom and the United States having relatively light regulation of the banking sector, and
countries such as China having relatively heavier regulation (including stricter regulations regarding the
level of reserves).

TABLE 1.1-NUMBER OF BANKS

Years Number of banks Authorised capital Paid-up Capital

that failed (Rs. Lakhs) (Rs. Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

1.1.3 BANKING SECTOR IN INDIA

A banker or bank is a financial institution whose primary activity is to act as a payment agent for
customers and to borrow and lend money.
An institution where one place and borrow money and take care of financial affairs; A branch office of
such an institution. The first modern bank was founded in Italy in Genoa in 1406.

Banking dates back to 1786, the first bank established in India, then the nationalization of banks in 1969
and recently the liberalization of the same since 1991.

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1.1.4 TYPES OF BANKS IN INDIA
The term bank is generally used to refer to commercial banks; however, it can also be used to refer to
savings institutions, savings and loan associations, and building and loan associations. A commercial
bank is authorized to receive demand deposits (payable on order) and time deposits (payable on a
specific date), lend money, provide services for fiduciary funds, issue letters of credit, and accept and
pay drafts. A commercial bank not only serves its depositors but also can offer installment loans,
commercial long-term loans, and credit cards.
A savings bank does not offer as wide a range of services. Its primary goal is to serve its depositors
through providing loans for purposes such as home improvement, mortgages, and education.

A SAVINGS AND LOAN ASSOCIATION (S&L) is similar to a savings bank in offering savings
accounts. It traditionally restricts the loans it makes to housing-related purposes including mortgages,
home improvement, and construction, although, some S&Ls have entered into educational loans for
their customers. An S&L can be granted its charter by either a state or the federal government; in the
case of a federal charter, the organization is known as a federal savings and loan. Federally chartered
S&Ls have their own system, which functions in a manner similar to that of the Federal Reserve
System, called the Federal Home Loan Banks System. Like the Federal Reserve System, the Federal
Home Loan Banks System provides an insurance program of up to $100,000 for each account; this
program is called the Federal Savings and Loan Insurance Corporation (FSLIC). The Federal Home
Loan Banks System also provides membership options for state-chartered S&Ls and an option for just
FSLIC coverage for S&Ls that can satisfy certain requirements.

1.1.5 TYPES OF RETAIL BANKS:

 Commercial bank: the term used for a normal bank to distinguish it from an investment bank.
After the Great Depression, the U.S. Congress required that banks only engage in banking
activities, whereas investment banks were limited to capital market activities. Since the two no
longer have to be under separate ownership, some use the term "commercial bank" to refer to a
bank or a division of a bank that mostly deals with deposits and loans from corporations or large
businesses. 

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 TABLE1.2
BRANCHES AND ATMS OF SCHEDULED COMMERCIAL BANKS AS ON END MARCH
2015
Bank type Number of branches On-site ATMs Off-site ATMs Total ATMs
Nationalized banks 33627 3205 1567 4772
States bank of India 13661 1548 3672 5220
Old private sector banks 4511 800 441 1241
New private sector banks 1685 1883 3729 5612
Foreign banks 242 218 582 800

 Community Banks: locally operated financial institutions that empower employees to make
local decisions to serve their customers and the partners.

 Community Development Banks: regulated banks that provide financial services and credit to
under-served markets or populations. 

 Postal Savings Banks: savings banks associated with national postal systems.

 Private Banks: banks that manage the assets of high net worth individuals. 

 Offshore Banks: banks located in jurisdictions with low taxation and regulation. Many offshore
banks are essentially private banks. 

 Savings Bank: in Europe, savings banks take their roots in the 19th or sometimes even 18th
century. Their original objective was to provide easily accessible savings products to all strata of
the population. In some countries, savings banks were created on public initiative; in others,
socially committed individuals created foundations to put in place the necessary infrastructure.
Nowadays, European savings banks have kept their focus on retail banking: payments, savings
products, credits and insurances for individuals or small and medium-sized enterprises

 Building Societies and Landesbanks: institutions that conduct retail banking. 

 Ethical Banks: banks that prioritize the transparency of all operations and make only what they
consider to be socially-responsible investments.

 Islamic Banks: Banks that transact according to Islamic principles. 

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 1.1.6 MAJOR PUBLIC SECTOR BANKS IN INDIA

 Allahabad Bank
 Bank of India
 Canara Bank
 Central Bank of India
 IDBI Bank
 State Bank of India
 State Bank of Hyderabad
 State Bank of Indore

1.1.7 PRIVATE BANKING IN INDIA.

 Bank of Punjab
 Bank of Rajasthan
 Catholic Syrian Bank
 Centurion Bank
 City Union Bank
 Dhanalakshmi Bank
 Development Credit Bank
 Federal Bank
 HDFC Bank

1.1.8 RURAL BANKING IN INDIA

 Haryana State Cooperative Apex Bank Limited.
 National Bank for Agriculture and Rural Development (NABARD).
 Sindhanur Urban Souharda Co-operative Bank.
 United Bank of India.

1.1.9 FOREIGN BANKS IN INDIA

 ABN-AMRO Bank
 Abu Dhabi Commercial Bank
 Bank of Ceylon

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  BNP Paribas Bank
 Citi Bank
 China Trust Commercial Bank
 Deutsche Bank
 HSBC
 JPMorgan Chase Bank
 Standard Chartered Bank
 Scotia Bank
 Taib Bank

1.1.10 CORPORATE BANKS

Corporate Banks are banks owned by either an individual or a general partner(s) with limited partner(s).
Private Banks are not incorporated. In any such case, the creditors can look to both the "entirety of the
bank's assets" as well as the entirety of the sole-proprietor's/general-partners' assets.

These banks have a long tradition in Switzerland, dating back to at least the revocation of the Edict of
Nantes (1685). Corporate Banks also have a long tradition in the UK where C. Hoare & Co. has been in
business since 1672.

Corporate Banking is banking, investment and other financial services provided by banks to private
individuals who invest sizable assets. The term "private" refers to customer service rendered on a more
personal basis than in mass-market retail banking, usually via dedicated bank advisers. It does not refer
to a private bank, which is a non-incorporated banking institution.

All those banks where greater parts of stake or equity are held by the private shareholders and not by
government are called "private-sector banks". These are the major players in the banking sector as well
as in expansion of the business activities India. The present private-sector banks equipped with all kinds
of contemporary innovations, monetary tools and techniques to handle the complexities are a result of
the evolutionary process over two centuries.

Corporate-sector banks have been functioning in India since the very beginning of the banking system.
Initially, during 1921, the private banks like bank of Bengal, bank of Bombay and bank of Madras were
in service, which all together formed Imperial Bank of India.

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1.2 INTRODUCTION TO COMPANY

State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in the
world and ranked 221st in the Fortune Global 500 list of the world's biggest corporations of 2020, being
the only Indian bank on the list. It is a public sector bank and the largest bank in India with a 23%
market share by assets and a 25% share of the total loan and deposits market. It is also the fifth largest
employer in India with nearly 250,000 employees.

The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of India, making
it the oldest commercial bank in the Indian Subcontinent. The Bank of Madras merged into the other
two presidency banks in British India, the Bank of Calcutta and the Bank of Bombay, to form
the Imperial Bank of India, which in turn became the State Bank of India in 1955. The Government of
India took control of the Imperial Bank of India in 1955, with Reserve Bank of India (India's central
bank) taking a 60% stake, renaming it State Bank of India.

HISTORY

The roots of State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was
one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April
1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were
incorporated as joint stock companies and were the result of royal charters. These three banks received
the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act, the right was
taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and
the re-organized banking entity took as its name Imperial Bank of India. The Imperial Bank of India
remained a joint-stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which
is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the
Imperial Bank of India became the State Bank of India. In 2008, the Government of India acquired the
Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the
country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made eight banks
that had belonged to princely states into subsidiaries of SBI. This was at the time of the First Five Year
Plan, which prioritized the development of rural India. The government integrated these banks into the
State Bank of India system to expand its rural outreach. In 1963 SBI merged State Bank of Jaipur (est.
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1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore
(est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishna ram Baldeo Bank,
which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madhu Rao
Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new
bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala,
which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had
an extensive network in Kerala.

There was, even before it actually happened, a proposal to merge all the associate banks into SBI to
create a single very large bank and streamline operations.

The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged
with SBI, reducing the number of associate state banks from seven to six. On 19 June 2009, the SBI
board approved the absorption of State Bank of Indore, in which SBI held 98.3%. (Individuals who held
the shares prior to its takeover by the government held the balance of 1.7%.) The acquisition of State
Bank of Indore added 470 branches to SBI's existing network of branches. Also, following the
acquisition, SBI's total assets approached ₹10 trillion. The total assets of SBI and the State Bank of
Indore were ₹9,981,190 million as of March 2009. The process of merging of State Bank of Indore was
completed by April 2010, and the SBIndore branches started functioning as SBI branches on 26 August
2010.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the
bank. Mrs. Bhattacharya received an extension of two years of service to merge into SBI the five
remaining associate banks.

Subsidiaries

SBI provides a range of banking products through its network of branches in India and overseas,
including products aimed at non-resident Indians (NRIs). SBI has 16 regional hubs and 57 zonal offices
that are located at important cities throughout India.

Domestic

SBI has over 24000 branches in India. In the financial year 2012–13, its revenue was ₹2.005
trillion (US$28 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly,
domestic operations contributed to 88.37% of total profits for the same financial year.

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Under the Pradhan Mantri Jan Dhan Yojana of financial inclusion launched by Government in August
2014, SBI held 11,300 camps and opened over 3 million accounts by September, which included 2.1
million accounts in rural areas and 1.57 million accounts in urban areas.

International

As of 2014–15, the bank had 191 overseas offices spread over 36 countries having the largest presence
in foreign markets among Indian banks.

 SBI Australia
 SBI Bangladesh
 SBI Behrain
 SBI Botswana

Listings and Shareholding

As on 31 March 2017, Government of India held around 61.23% equity shares in SBI. The Life
Insurance Corporation of India, itself state-owned, is the largest non-promoter shareholder in the
company with 8.82% shareholding.

Shareholders Shareholding

Promoters: Government of India 56.92%

FIIs/GDRs/OCBs/NRIs 10.94%

Banks & Insurance Companies 10.63%

Mutual Funds & UTI 13.72%

Others 07.79%

Total 100.0%

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 The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent of
the BSE SENSEX index,[41] and the National Stock Exchange of India, where it is a constituent of
the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the London Stock Exchange.

Employees

SBI is one of the largest employers in the country with 209,567 employees as on 31 March 2017, out of
which 23% were female employees and 3,179 (1.5%) were employees with disabilities. On the same
date, SBI had 37,875 Scheduled Castes (18%), 17,069 Scheduled Tribes (8.1%) and 39,709 Other
Backward Classes (18.9%) employees. The percentage of Officers, Associates and Subordinates was
38.6%, 44.3% and 16.9% respectively on the same date. Around 13,000 employees joined the Bank in
FY 2016–17. Each employee contributed a net profit of ₹511,000 (US$7,200) during FY 2016–17.

State Bank Bhavan, Nariman Point, Mumbai

Formerly Imperial Bank of India

Type Public Sector Undertaking

Traded as  NSE: SBIN

 BSE: 500112
 LSE: SBID
 BSE SENSEX Constituent
 NSE NIFTY 50 Constituent

ISIN INE062A01020

Industry Banking, financial services

Predecessor Imperial Bank of India

(1921 – 1955)
 Bank of Calcutta

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 (1806 – 1921)
 Bank of Bombay
(1840 – 1921)
 Bank of Madras
(1843 – 1921)

Founded  2 June 1806

Bank of Calcutta
 15 April 1840
Bank of Bombay
 1 July 1843
Bank of Madras
 27 January 1921
Imperial Bank of India
 1 July 1955; 65 years ago
State Bank of India

Headquarters State Bank Bhawan, M.C. Road, Nariman Point, Mumbai,

Maharashtra, India

Number of 22,141 Branches, 58,555 ATMs

locations

Area served Worldwide

Key people Dinesh Kumar Khara

(Chairman)[1]

Products  Retail banking

 Corporate banking
 Investment banking
 Mortgage loans
 Private banking
 Wealth management
 Credit cards
 Finance and Insurance

Revenue ₹385,338 crore (US$54 billion) (2021)

Operating ₹78,898 crore (US$11 billion) (2021)

income

Net income ₹22,405 crore (US$3.1 billion) (2021)

Total assets ₹4,845,619 crore (US$680 billion) (2021)

Total equity ₹274,669 crore (US$39 billion) (2021)

Number of 249,448 (March 2020)

employees

Parent Government of India

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 Subsidiaries SBI Life Insurance Ltd
 SBI Cards and Payment Services Ltd
 SBI General Insurance (70%)
 Jio Payments Bank (30%)
 Yes Bank (30%)
 Andhra Pradesh Grameena Vikas Bank (35%)
 Kaveri Grameena Bank (35%)

Rating  Baa-2 Moody's[2]

 BBB-F3 Fitch
 BBB-A3 S&P

Website bank.sbi

 PRODUCTS AND SERVICES AT A GLANCE

1. PERSONAL BANKING
 Accounts & Deposits
Regular Savings Account
Savings plus Account
Savings Max Account
Senior Citizens Account
No Frills Account
Institutional Savings Account
Payroll Salary Account
Classic Salary Account
Savings Account
Premium Current Account
Regular Current Account
Apex Current Account
Max Current Account
 Investments & Insurance
Mutual Funds
Insurance- Bonds
Financial Planning
Knowledge Centre
Equities & Derivatives
Mudra Gold Bar

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 Forex Services
Trade Finance
Travelers Cheques
Foreign Currency Cash
Foreign Currency Drafts
Foreign Currency Cheque Deposits
Foreign Currency Remittances
Cash to Master
ForexPlus Card

 Payment Services
Net Safe
Prepaid Refill
Bill Pay- Direct Pay
Visa Money Transfer
E-Monies Electronic Funds Transfer
Excise & Service Tax Payment

 Access YourBank
One View
Instant Alerts
Mobile Banking
ATM
Phone Banking
Branch Network

WHOLESALE BANKING
A. Corporate
Funded Services
Non Funded Services
Value Added Services
Internet Banking

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B. Small& Medium Enterprises
Funded Services
Non Funded Services
Specialized Services
Internet Banking

C. Financial Institutions & Trusts

Banks
Financial Institutions
Mutual Funds
Stock Broker

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1.3 INTRODUCTION TO THE TOPIC

1.3.1 CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is a widely implemented model for managing a company‘s
interactions with customers, clients, and sales prospects. It involves using technology to organize,
automate, and synchronize business processes—principally sales activities, but also those
for marketing, customer service, and technical support. The overall goals are to find, attract, and win
new clients; nurture and retain those the company already has; entice former clients back into the fold;
and reduce the costs of marketing and client service. Customer relationship management describes a
company-wide business strategy including customer-interface departments as well as other departments.
Measuring and valuing customer relationships is critical to implementing this strategy.
. The conclusions of the study were:
• A Totally Satisfied Customer contributes 2.6 times more revenue to a company as somewhat Satisfied
Customer.

• A Totally Satisfied Customer contributes 17 times as much as revenue comparison to Somewhat

Dissatisfied Customer.

• A Totally Dissatisfied customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied
Customer contributes to a business.

• By reducing customer defection (by as little as 5%) will result in increase in profits by 25%to 85%
depending from industry to industry.

An important facet of CRM is ―customer selectivity‖. As several research studies have shown not all
customers are equally profitable (In fact in some cases 80% of the sales come through20% of the
customers). The company must therefore be selective and tailor its program and marketing efforts by
segmenting and selecting appropriate customers for individual marketing programs. In some cases, it
could even lead to ―outsourcing of some customers‖ so that a company better utilize its resources on
those customers it can serve better and create mutual value. However, the objective of a company is not

to really prune its customer base but to identify appropriate customer programs and methods that would
be profitable and create value for the firm and the customer.

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1.3 BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT

A Customer Relationship Management system may be chosen because it is thought to provide the
following advantages: -

 Quality and efficiency

 Decrease in overall costs
 Decision support
 Enterprise ability
 Customer Attentions
 Increase profitability
 Improved planning
 Improved product development

1.3.1 IMPORTANCE OF CRM

Customer Relationship management is the strongest and the most efficient approach in maintaining and
creating relationships with customers. Customer relationship management is not only pure business but
also ideate strong personal bonding within people. Development of this type of bonding drives the
business to new levels of success.

Customer relationship management is a broad approach for creating, maintaining and expanding
customer relationships. CRM is the business strategy that aims to understand, anticipate, manage and
personalize the needs of an organization ‘s current and potential customers. At the heart of a perfect
strategy is the creation of mutual value for all parties involved in the business process. It is about
creating a sustainable competitive advantage by being the best at understanding, communicating, and
delivering and developing existing customer relationships in addition to creating and keeping new
customers. So the concept of product life cycle is giving way to the concept of customer life cycle
focusing on the development of products and services that anticipate the future need of the existing
customers and creating additional services that extend existing customer relationships beyond
transactions.
Looking at some broader perspectives given as below we can easily determine why a CRM System
is always important for an organization.
1. A CRM system consists of a historical view and analysis of all the acquired or to be acquired
customers. This helps in reduced searching and correlating customers and to foresee customer
needs effectively and increase business.
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2. CRM contains each and every bit of details of a customer, hence it is very easy for track a
customer accordingly and can be used to determine which customer can be profitable and which
not.
3. In CRM system, customers are grouped according to different aspects according to the type of
business they do or according to physical location and are allocated to different customer
managers often called as account managers. This helps in focusing and concentrating on each
and every customer separately.
4. A CRM system is not only used to deal with the existing customers but is also useful in
acquiring new customers. The process first starts with identifying a customer and maintaining all
the corresponding details into the CRM system which is also called an ‗Opportunity of
Business‘. The Sales and Field representatives then try getting business out of these customers
by sophistically following up with them and converting them into a winning deal. All this is very
easily and efficiently done by an integrated CRM system.
5. The strongest aspect of Customer Relationship Management is that it is very cost-effective. The
advantage of decently implemented CRM system is that there is very less need of paper and
manual work which requires lesser staff to manage and lesser resources to deal with. The
technologies used in implementing a CRM system are also very cheap and smooth as compared
to the traditional way of business.
6. All the details in CRM system is kept centralized which is available anytime on fingertips. This
reduces the process time and increases productivity.
7. Efficiently dealing with all the customers and providing them what they actually need increases
the customer satisfaction. This increases the chance of getting more business which ultimately
enhances turnover and profit.
8. If the customer is satisfied they will always be loyal to you and will remain in business forever
resulting in increasing customer base and ultimately enhancing net growth of business.

In today’s commercial world, practice of dealing with existing customers and thriving business
by getting more customers into loop is predominant and is mere a dilemma. Installing a CRM
system can definitely improve the situation and help in challenging the new ways of marketing
and business in an efficient manner. Hence in the era of business every organization should be
recommended to have a full-fledged CRM system to cope up with all the business needs.

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1.3.2 CHALLENGES

Successful development, implementation, use and support of customer relationship management

systems can provide a significant advantage to the user, but often there are obstacles that obstruct the
user from using the system to its full potential. Instances of a CRM attempting to contain a large,
complex group of data can become cumbersome and difficult to understand for ill-trained users. The
lack of senior management sponsorship can also hinder the success of a new CRM system. Stakeholders
must be identified early in the process and a full commitment is needed from all executives before
beginning the conversion. But the challenges faced by the company will last longer for the convenience
of their customers.

Additionally, an interface that is difficult to navigate or understand can hinder the CRM‘s effectiveness,
causing users to pick and choose which areas of the system to be used, while others may be pushed
aside. This fragmented implementation can cause inherent challenges, as only certain parts are used and
the system is not fully functional. The increased use of customer relationship management software has
also led to an industry-wide shift in evaluating the role of the developer in designing and maintaining its
software. Companies are urged to consider the overall impact of a viable CRM software suite and the
potential for good or bad in its use.

1.3.3 KEY CHALLENGES IN CRM IMPLEMENTATION:

1. Defining Clear Objectives:

The organization should have a clear set of objectives which it would like to achieve through the
CRM. These objectives need to be listed and defined as measurable metrics. Without doing so,
the company can‘t assess the benefits or the ROI of the CRM system.

2. Appointing a Core CRM Team:

The CRM initiative is not an IT project. A core CRM team should be formed in addition to the
participation from Top Management, Senior Executives, Customer Service, IT and end-users.
Only after the requirements are clear should they be handed over to IT for implementation.

3. Defining the Processes:

It is important for the processes to be clearly defined and enforced in order to set up the CRM
project for success. One good practice is to create a central repository, accessible to all, w h i c h
stores all the process definitions. This allows the document to be available for referencing by
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 anyone using the system. Key processes that need to be defined from the start are Change
Management process, Feature Re-evaluation process etc. Also, clear security measures with
access management need to be in place to make sure that important data is not accessible by
those who shouldn‘t be accessing it.

4. Managing the Application:

Once the CRM has been rolled-out, it is important to re-align the work culture of the teams
around it. The business operation should properly map with the CRM application. This also
means that end users should perform day-to-day operations through the CRM application by
default and not optionally.

5. Finding the Right Partner:

The rate of CRM success considerably goes up with the right solution partner. Ideally select a
partner who can do both, strategy & implementation. It is important that your partner shares the
risks of your implementation. Working with a vendor who understands local work culture,
technology limitations and listens to the employees, are ideal.

1.3.4 GLOBAL CRM IMPLEMENTATION CHALLENGES:

Today, sophisticated enterprise CRM systems can share all that information across the globe with a
couple of clicks. Sounds easy? Actually, global CRM implementations include all the challenges and
complexities of a single location and then increase risk exponentially with each additional location and
its associated variables and issues. Careful planning is the key to any successful software
implementation - and absolutely critical in multiple site projects. In a global CRM implementation,
knowing what's ahead and the challenges that have confronted others before you is critical to achieving
the end goal. Many CRM projects focus on methodology and logistics. This article addresses some
common lessons learned that are often overlooked.

Language barriers should not be taken too lightly. It's true that in the modern world you can find many
team members with multi-lingual skills. However, there is no substituting for native speakers in an
experienced project team. Language nuances and colloquialism can lead to miscommunications and
unintended consequences. However, team communications is just one of the language challenges. Many
countries and regions have laws that require any software to be translated in the native language where
it is being used. Even if there are no legal or user requirements for software localization, customer
facing applications such as portals or transaction documents such as quotes, invoices and marketing
19
collaterals should be localized to be effective. Though there are many services and software systems
that provide localization, project teams need to make sure user interfaces, help documentation and
training materials are properly translated and user tested.

Language is just another manifestation of a culture. When implementing a CRM system abroad, cultural
differences may be subtle in some areas and starkly contrasted in others. Multi-cultural teams, whether
virtual or on site, have to learn to deal with different body languages, different cultural values and
different work habits. What is considered a innocent greeting touch or motion in one country can be an
inappropriate or insulting gesture in another. Likewise, work culture can often set misinterpreted
expectations. In many European countries, workers are required to have 25 vacation days. On the other
hand, in China, employees often work on Saturdays. In Scandinavian countries, during the summer,
staff members often show up for work in the wee hours of the morning so they can leave at 3:00 PM to
enjoy the extended daylight. Latin America workers may routinely not show up before 9:00 or 10:00
AM. Global project team members not from these regions may feel that their colleagues are slacking.
Planning the project around various national holidays, vacations, work day differences, and other
cultural challenges is a constant challenge for a project manager but critical to the success of a multi-
national CRM implementation.

Cultural differences can also affect other factors of a software implementation, such as data collection.
In some countries, customers are reticent to provide specific information, including addresses and phone
numbers. This is a major challenge especially for CRM systems, which strive to be the customer system
of record and deliver a 360º view of the customer relationship. Even when you do have the right
information, some governments do not allow you to use that information in specific ways, such as email
or telemarketing.

This brings us to regulatory compliance and local laws. In the last few years, many countries have
adopted new data retention and privacy laws to protect their citizens from the increasingly sophisticated
and incredibly annoying global marketing engine. In Germany, companies must institute a double opt-in
mechanism for any marketing activities, not just email. Even if the customer requests information from
the company, the business is required to obtain a confirmation that the customer does indeed want to be
contacted. The US CAN-SPAM Act is somewhat less strict but thirty-seven states have instituted their
own more rigorous versions of this legislation. There are also varying disclosure requirements, if
customer data becomes compromised, with severe penalties if not adhered to.

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1.3.5 TYPES/VARIATIONS OF CUSTOMER RELATIONSHP MANAGEMENT

SALES FORCE AUTOMATION

Sales force automation (SFA) involves using software to streamline all phases of the sales process,
minimizing the time that sales representatives need to spend on each phase. This allows a business to
use fewer sales representatives to manage their clients. At the core of SFA is a contact management
system for tracking and recording every stage in the sales process for each prospective client, from
initial contact to final disposition. Many SFA applications also include insights into opportunities,
territories, sales forecasts and workflow automation.

MARKETING

CRM systems for marketing help the enterprise identify and target potential clients and generate leads
for the sales team. A key marketing capability is tracking and measuring multichannel campaigns,
including email, search, social media, telephone and direct mail. Metrics monitored include clicks,
responses, leads, deals, and revenue. Alternatively, Prospect Relationship Management (PRM) solutions
offer to track customer behavior and nurture them from first contact to sale, often cutting out the active
sales process altogether.

In a web-focused marketing CRM solution, organizations create and track specific web activities that
help develop the client relationship. These activities may include such activities as free downloads,
online video content, and online web presentations.

CUSTOMER SERVICE AND SUPPORT

CRM software provides a business with the ability to create, assign and manage requests made by
customers. An example would be Call Center software which helps to direct a customer to the agent
who can best help them with their current problem. Recognizing that this type of service is an important
factor in attracting and retaining customers, organizations are increasingly turning to technology to help
them improve their clients ‘experience while aiming to increase efficiency and minimize costs. CRM
software can also be used to identify and reward loyal customers which in turn will help customer
retention. Even so, a 2009 study revealed that only 39% of corporate executives believe their employees
have the right tools and authority to solve client problems.

APPOINTMENT

Creating and scheduling appointments with customers is a central activity of most customer oriented
businesses. Sales, customer support, and service personnel regularly spend a portion of their time
getting in touch with customers and prospects through a variety of means to agree on a time and place

21
for meeting for a sales conversation or to deliver customer service. Appointment CRM is a relatively
new CRM platform category in which an automated system is used to offer a suite of suitable
appointment times to a customer via e-mail or through a web site. An automated process is used to
schedule and confirm the appointment, and place it on the appropriate person's calendar. Appointment
CRM systems can be an origination point for a sales lead and are generally integrated with sales and
marketing CRM systems to capture and store the interaction.

ANALYTICS

Relevant analytics capabilities are often interwoven into applications for sales, marketing, and service.
These features can be complemented and augmented with links to separate, purpose-built applications
for analytics and business intelligence. Sales analytics let companies monitor and understand client
actions and preferences, through sales forecasting and data quality.

Marketing applications generally come with predictive analytics to improve segmentation and targeting,
and features for measuring the effectiveness of online, offline, and search marketing campaigns. Web
analytics have evolved significantly from their starting point of merely tracking mouse clicks on Web
sites. By evaluating ―buy signals, ‖ marketers can see which prospects are most likely to transact and
also identify those who are bogged down in a sales process and need assistance. Marketing and finance
personnel also use analytics to assess the value of multi-faceted programs as a whole.

HORIZONTAL V/S VERTICAL

Horizontal CRM manufacturers offer the same non-specialized base product across all industries. They
tend to be cheaper, least common denominator solutions. For example, a bakery would get the same
product as a bank. Vertical CRM manufacturers offer specialized, specific industry or pain-point CRM
solutions. In general, horizontal CRM solutions are less costly up front, and more costly in the future,
due to the fact that companies must tailor them for their particular industry and business model. On the
other hand, Vertical CRM solutions tend to be more costly up front and less costly down the road
because they already incorporate best practices that are specific to an industry and business model.

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STRATEGY

For larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources,
and company-wide support that can make the initiative of choosing and implementing a system
successfully. Benefits must be defined, risks assessed, and cost quantified in three general areas:

 Processes: Though these systems have many technological components, business processes lie at its
core. It can be seen as a more client-centric way of doing business, enabled by technology that
consolidates and intelligently distributes pertinent information about clients, sales, marketing
effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business
workflows and processes before choosing a technology platform.

 People: For an initiative to be effective, an organization must convince its staff that the new
technology and workflows will benefit employees as well as clients. Senior executives need to be
strong and visible advocates who can clearly state and support the case for change. Collaboration,
teamwork, and two-way communication should be encouraged across hierarchical boundaries,
especially with respect to process improvement.

 Technology: In evaluating technology, key factors include alignment with the company‘s business
process strategy and goals, including the ability to deliver the right data to the right employees and
sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen
group of executives who understand the business processes to be automated as well as the software
issues. Depending upon the size of the company and the breadth of data, choosing an application
can take anywhere from a few weeks to a year or more.

1.3.6 CRM IN BANKING

Competition and globalization of banking services are forcing banks to be productive and profitable. To
retain High Net Worth individuals, banks should focus strongly on relationship management with
customers. Innovative Customer Relationship Management (CRM) strategies and cutting edge software
can help, to a great extent, in achieving the desired results. To provide customized services, banks are
opening Personalized Boutiques which provide all the required financial needs of a customer‖.

Success of a bank‘s strategy towards customer acquisition will depend on its ability to develop customer
insights and translate these into effective operating models. Ensuring a good customer experience at
every customer touch point is the cornerstone of a successful growth strategy. A good customer
experience will drive customer acquisition and promote customer retention, which translates into

23
increased profits. This, in other words, is the hallmark of a successful CRM strategy. Emphasis on CRM
arises on account of the challenges confronting retail managers managing to sustain and achieve growth
and profits.

Bankers are conscious of the relative costs of acquiring new customers. As top management emphasizes
on ―delivering results‖, most bankers resort to customer grabbing, rather that customer cultivation and
creation, with the result that ―customer churn‖ is the call of the day. Incidentally, bankers are fully
aware that losing the existing customer and acquiring new customers is an expensive affair. .

To meet the challenging preferences of the customers and to stay ahead of competitors, bankers are
bound to attract customers by providing a spectrum of services. Online banking, ATM banking and
telebanking are just a few of them. Banks can enhance customer service by leveraging on technology,
maintenance of efficient service delivery standards and business process reengineering. On their part,
employees need to demonstrate certain service traits such as, putting on pleasing attire. At the end of the
day, bankers should display a flair for cultivating a good relationship with customers through the
mechanism of better customer service.

The entire service industry is now metamorphosed to become customer- specific. In this context, the
management of customer relationship in financial services industry demands special focus. Gone are the
days when customers at a bank did not mind the long serpentine queues and waited patiently for their
turn with a token in their hand. In today‘s Internet era, no one has the leisure to wait. In this context,
online banking is assuming a great significance. Today, banking is more customer-centric, unlike the
yester when it was transaction-centric. Banks are increasingly focusing on the premise that customers
choose on the service provider who differentiates through quick and efficient service.

With customers‘ expectations becoming even more competitive, banks are coming up with a wide array
of novel products and services every day. The challenge is for the banks to work towards ensuring that
customers prefer their products and services over that of competing brands. The key to develop and
nurture a close relationship with customers is by appreciating their needs and preferences and catering
to their requirements. Leveraging on IT, to appropriately analyze and understand the needs of existing
customers better, to ensure customer satisfaction, and exploring the possibility of cross-selling products
to gain a competitive advantage are the other issues drawing attention and interest.

Having understood the significance, it is prudent to plan for CRM in retail banks. To a large extent, the
success of a CRM plan is dependent on the choice of the software. Towards this end, bankers should
identify domain enterprise, credibility in the market, cost implementation and relationship with the

24
vendor as factors on which vendor selection is based. The domains of software systems, multiply
product database and tracking require specific CRM focus. Besides understanding the requirements for
CRM implementations such as, the setting up of a CRM cell and conducting surveys at a periodic
intervals to track their effectiveness, banks need to understand how CRM assists them n customer
identification, acquisition and retention.

As a part of the planning process, frontline executives in banks should thoroughly understand their
organizational structure, infrastructure, as well as the product environment. In this context, the
management initiatives for CRM assume importance. A top-down CRM focused approach that starts
with the top management, percolating and permeating to all levels of the CRM is a necessity in the
present business scenario. Initiatives, such as, introducing CRM audit by independent teams to identify
the existing lacunae, and plugging the loopholes in the CRM strategy as per the recommendations of the
audit report, are required to be adopted by the banks for reaping benefits.

Banks can gain a competitive advantage from CRM by becoming low-cost players in the market,
achieving operational efficiency and maintaining customer loyalty. The ability to predict the products
that customers are likely to purchase over a period of time, increased productivity of managerial
executives, sales and customer service staff, and streamlining of business processes are some of the
benefits retail banks obtain by taking to successful management of their customer relationships.

Implementing the right CRM tools can enhance customer satisfaction leading to business growth. CRM
enables organizations to motivate customers to initiate revenue-generating contacts. Several CRM
issues such as, its effectiveness, application and challenges draw attention of the banking industry.
Having witnessed the manner in which several global banks have benefited through CRM, the Indian
retail banks too need to focus on and continuously invest in the customer relationship activities. The
Indian banking scenario, which is still at an embryonic stage as far as the CRM domain is considered,
needs to strive towards CRM implementation to meet the emerging demands of ―universal banking‖.

1.3. PRESENT AND FUTURE OF CRM IN BANKING

In banking sector, relationship management could be defined as having and acting upon deeper
knowledge about the customer, ensure that the customer such as how to fund the customer, get to know
the customer, keep in touch with the customer, ensure that the customer gets what he wishes from
service provider and understand when they are not satisfied and might leave the service provider and act
accordingly.

25
CRM in banking industry is entirely different from other sectors, because banking industry purely
relates to financial services, which needs to create the trust among the people. Establishing customer
care support during on and off official hours, making timely information about interest payments,
maturity of time deposit, issuing credit and debit cum ATM card, creating awareness regarding online
and e-banking, adopting mobile request etc are required to keep regular relationship with customers.

The present day CRM includes developing customer base. The bank has to pay adequate attention to
increase customer base by all means, it is possible if the performance is at satisfactory level, the existing
clients can recommend others to have banking connection with the bank he is operating. Hence asking
reference from the existing customers can develop their client base. If the base increased, the
profitability is also increase. Hence the bank has to implement lot of innovative CRM to capture and
retain the customers.

There is a shift from bank centric activities to customer centric activities are opted. The private sector
banks in India deployed much innovative strategies to attract new customers and to retain existing
customers.

26
2.0 REVIEW OF LITERATURE

Afsar, et al. (2009) The concept of customer loyalty has received much consideration and attention
from both academics and practitioners in different industries. In increasingly competitive markets, being
able to build consumer loyalty is seen as the key factor in winning market share and developing a
sustainable competitive advantage. Banking industry is no exception as it has high interaction with the
customers, so managers must understand the factors which influence the loyalty of the customers
towards the irrespective banks. It is always costly to attract new customers, so the managers always try
to find ways to retain their current customers and concentrate on different factors which enhances the
customer loyalty among the customers of the organizations. This research attempts to find the factors of
customer loyalty and their relationships with the banking industry in one of the developing countries,
which is Pakistan. Then analyzing the relationship among different factors, a model for the customer
loyalty is proposed at the end of the research. In order to do this, a questionnaire is designed and
validated, then based on the data which is gained from the 316 respondents' answers to the designed
questionnaire, the analysis is done and the results and the relations among the factors are explained.
Perceived quality, satisfaction, trust, switching cost and commitment are the factors which influence the
loyalty of the customers. These factors also influence each other as well. The relationships of different
factors with each other are also studied and the SPSS software is used to analyze the data gathered from
the respondents.

Wahab,et al (2009) The electronic revolution in the Malaysian banking sector has started in the 1970's.
The first visible form of electronic innovation in the Malaysian banking industry was the introduction of
Automated Teller Machines in 1981. Finally, on June 1, 2000, the Malaysian Central Bank gave the
green light for locally owned commercial banks to offer Internet banking services. Due to the drastic
changes in the business environment, it leads financial institutions to revise their marketing strategies to
stress long-lasting relationships with customers. Relationships are important criteria in the selection of
private bank. In many conditions, customer satisfaction mediates the relationship between antecedent‘s
factors and marketing performance. Hence, CRM performance is about maintaining good relationship
and repurchases behavior, word-of-mouth and customer retention. Trust has been studied in traditional
physical commercial environments. In the marketing and management literatures, trust is strongly
associated with attitudes toward products, services, and purchasing behaviors. So that, the main
objective of this research paper is to investigate the role of CRM performance as the mediator in the
relationship between trust and E-Banking adoption. Hence, this empirical paper confirmed the role of
customer relationship management performance as the mediators in the relationship between trust and
electronic banking adoption..
27
Das, K., Parmar, J., & Sadanand, V. K. (2009) He current study explores the association between
deployment of customer relationship management (CRM) best practices and loyalty of profitable
customers in Indian retail banking sector. The study comprises two parts. The first part called the CRM
best practice survey involves the use of descriptive research design. The second part viz. case study
research involves the use of embedded customer loyalty survey. The hypothesis testing based on literal
and theoretical replication is done using the concept of pattern matching. The findings reveal that there
is no perfect bank, as yet, across the three bank types, which has deployed all the 29 CRM best practices
to the fullest extent. The results of literal and theoretical replication done by using pattern matching
technique indicates no strong association between deployment of CRM best practices in scheduled
commercial banks and loyalty levels of both high and medium relationship value retail customers. The
study develops a list of 29 CRM best practices, which may be helpful to the organizations toward
achieving comprehensive CRM deployment. The results also imply that going for Redeployment may
not be a profitable strategy for retail banks, particularly in the Indian context

Krasnikov, A., Jayachandran, S., & Kumar, V. (2010) The impact of customer relationship
management (CRM) implementation on firm performance is an issue of considerable debate. This study
examines the impact of CRM implementation on two metrics of firm performance operational (cost)
efficiency and the ability of firms to generate profits (profit efficiency) using a large sample of U.S.
commercial banks. The authors use stochastic frontier analysis to estimate cost and profit efficiencies
and employ hierarchical linear modeling to assess the effect of CRM implementation on cost and profit
efficiencies. They find that CRM implementation is associated with a decline in cost efficiency but
increase in profit efficiency. A firm-level factor, CRM commitment, reduces the negative effect of
CRM implementation on cost efficiency. The authors also find that two adoption-related factors, time of
adoption and time since adoption, influence the relationship between CRM implementation and cost and
profit efficiencies. Early adopters benefit less from CRM implementation than late adopters. However,
time since adoption improves the performance of firms that implement CRM. By demonstrating the
different ways CRM implementation influences cost and profit measures, the study provides valuable
insights to CRM researchers and managers.

The outcome of knowledge process for Customer of Jordanian companies on the achievement of
customer knowledge retention‖. This Paper reflects the customer knowledge the retention based on
analysis of various literature review process. The key focus was of the concept of CRM strategies and
competitive advantages.

Salime Mehtap Smadi (2010) this research paper remarked those essential factor which a customer
keeps in mind while the bank to with their money. Next comes the customer‘s mentality to deal with

28
bank service quality. A questionnaire was filled by 20 students of banking and finance department. As a
result, it showed that the customers were not satisfied with bank operating hours.

Sharma, J., & Singh, J (2011) this research paper Elaborate the role of Customer Relationship
Management to raise the value of customer over their lifetime. CRM has become a topic of increasing
importance in marketing while using technology in implementing the relationship marketing strategy.

Rouholamini, M., & Venkatesh, S. (2011).Iran is one of the developing nations of Middle Eastern
Region which has got a large number of banking institutions. The practice of CRM is widely
acknowledged as an important component of marketing management and corporate communication
management processes in Iranian banks but unfortunately applications of CRM is not favorable.
Advanced information and communication technologies are also widely utilized by the Iranian banks to
enrich the process of organizational management in general and customer relations management in
particular. Most of the public and private banks have adopted the practice of CRM and enriched the
process of marketing considerably over a period of time in Iran, but still they are in the half way. The
role of CRM in the development and management of banking services in Iran and other developing
nations of the world has been a subject of debate, discussion and research. The present study evaluates
the Customer Relationship Management practices adopted by the Iranian banking industry.

Dardad Rashmi (2012) There is an imperative need for not mere technology up gradation but also its
integration with the general way of functioning of banks to give them an edge in respect of services
provided to their constituents, better housekeeping, optimizing the use of funds and building up of MIS
for decision making, better management of assets & liabilities and the risks assumed which in turn have
a direct impact on the balance sheets of banks as a whole. Technology has demonstrated potential to
change methods of marketing, advertising, designing, pricing and distributing financial products and
services and cost savings in the form of an electronic, self-service product delivery channel. These
challenges call for a new, more dynamic, aggressive and challenging work culture to meet the demands
of customer relationships, product differentiation, brand values, reputation, corporate governance and
regulatory prescriptions. Technology holds the key to the future success of Indian Banks. Internet,
wireless technology and global straight-through processing have created paradigm shift in the banking
industry. The explosive growth of both the Internet and mobile and wireless technology is
revolutionizing the way the financial industry conducts business. The overall wireless technology
market is expected to grow profoundly in the coming years.

Rane Mamta(2012).This study strongly supports the fact that CRM is need of an hour and no business
may be it is banking business; retailing or something else can ever survive without proper introduction
of customer relationship management. ICICI bank has understood and also experienced its importance.
29
This study strongly supports the connection that consumer were more satisfied with professional service
provider who engaged in both courteous expressions and personal connections forms of sociality.
Moreover, finding revealed that regardless of services context customers expect service provider to be
courteous usually ,most conversation begin or end with a courtesy expression and includes some form
of personal connection content. The important point is that sociality communication can play a pivotal
role in moving the provider and consumer for mere encounters to higher degree of relational
development.

K.R Uppal, (2012) Under the regime of banking sector reforms, IT Act of 1999 gave new dimensions
to the Indian banking sector. IT has created transformation in banking structure, business process, work
culture and human resource development. It has affected the productivity, profitability and efficiency of
the banks to a large extent. The paper concludes that performance of all the banks under study is much
better in post-e-banking period and further foreign banks are at the top position, whereas the
performance of the public sector banks is comparatively very poor. The paper suggests some measures
to tackle the challenges faced by the banks particularly public sector banks. At the end, paper suggests
how public sector banks can convert the emerging challenges into opportunities.

Money Roberts- Lombard (2012). Organizations such as banks and short-term insurance organizations
become more aware of the importance of customer relationship management (CRM) and its potential to
help them acquire new customers, retain existing ones and maximize their lifetime value. A close
relationship with customers will require a strong coordination between information technology (IT) and
marketing departments to provide a long-term retention of selected customers. The primary objective of
this study is to investigate the influence of selected independent variables, two-way communication and
conflict handling on intentional customer loyalty via CRM as the intervening variable at a South
African short-term insurance organization. Primary data were gathered using a questionnaire, with items
referring to CRM, customer loyalty, two-way communication and conflict handling. The sample
consisted of 254customers in four major centers in South Africa. Data were factor-analyzed. One
independent variable, conflict handling exerted a statistically significant positive influence on the
intervening variable (CRM), while two-way communication exerted a statistically significant negative
influence on the intervening variable (CRM). The intervening variable (CRM) positively influenced the
dependent variable (Customer Loyalty). If short-term insurance organizations communicate timorously
and accurately, and are skilled in conflict handling, greater loyalty will be created among customers.

TaleJ &Pedhiwal G (2012). It is observed that CRM is the hot talk in the banking sector and its
services are far more favorably. This could be further accredited to CRM a closer understanding and
individualized service to the customer. There is strong recognition of its benefits for the long term

30
organizational survival at both top and middle levels of management amongst Indian banking
companies. This study shows that if organizations want to attain a sustainable competitive advantage
through CRM, they should efficiently apply all the CRM resources to create CRM process capabilities
which are unique and cannot be copied by other organizations. There is a direct relationship between
perception and satisfaction, commitment and loyalty which underlines the significance of CRM in
service industry.

Patwa, L. K., & Patwa, K. K. (2014) paper, ―An Analytical Study of CRM Practices in Public and
Private Sector Banks in the State of Uttar Pradesh‖ (Pacific Business Review International, Vol. 6, Issue
7, pp. 60-69), examines the relative Customer Relationship Management (CRM) performance and
evaluates its collision on customer retention between the private and public banks of Uttar Pradesh.
Stratified random sampling technique is used for present study for administrating the questionnaire. The
sample had been collected from the 04 banks situated in Uttar Pradesh. The researchers have considered
two public (UBI & OBC) and two private (AXIS & ING VYSYA) sector banks for the study. The
sample size of the study is 328 respondents. It was found that the private sector banks have been able to
implement the CRM practices more effectively when compared to their public sector counterparts. This
indicates that strategically speaking, the private sector banks have been more innovative in
understanding their customers and in building good relations with them. The analysis of the results
received suggests that the banks (public and private) are equally affected by the kind of CRM initiative
they undertake. The banks are now under tremendous pressure to retain the older customers because of
the competition in banking sector. This would not only ensure better customer relations but also loyalty
among them, which is very critical and important in today‘s competitive world. The banks can do this
by building a strong relationship with the customers
M Malik - Journal of Business Ethics, (2015) - SpringerThis study reviews and synthesizes the
contemporary business literature that focuses on therole of corporate social responsibility (CSR) to
enhance firm value. The main objective of thisreview is to proffer a precise understanding of what has
already been investigated.

Vashishtha, S., & Sharma, S. (2016) ―New customer acquisition challenge by retailer‖: a conceptual
paper. This conceptual paper demystifies the gap between dimensions of Retailer‘s perception of new
customer acquisition and the consumer‘s dimension of the store choice.Customer Relationship
Management has emerged as a popular business strategy in today‘s competitive environment. It is a
discipline which enables the company ‘s to identify and target their most profitable customers. CRM
involves new and advance marketing strategies which not only retain the existing customers but also
acquire new customers. It has been invented as a unique technique capable of remarkable changes in
31
total output of companies.

S Pope, A Wæraas - Journal of Business Ethics, (2016) - SpringerGrowth in CSR-washing claims in

recent decades has been dramatic in numerous academicand activist contexts. The discourse, however,
has been fragmented, and still lacks anintegrated framework of the conditions necessary for
successful CSR-washing.

Soltani, Z. and Navimipour, N.J., (2016) Customer relationship management mechanisms: In the
information systems, customer relationship management (CRM) is the overall process of building and
maintaining profitable customer relationships by delivering superior customer value and satisfaction
with the goal of improving the business relationships with customers. Also, it is the strongest and the
most efficient approach to maintaining and creating the relationships with customers.
Zaby, C. and Wilde, K.D., (2018) Customer relationship management (CRM) is becoming a critical
source of competitive advantage for businesses today. However, many CRM business processes are
deficient and inflexible. For example, many customers are dissatisfied with complaint management.
Still, companies seldom systematically adapt the complaint management process. In theory, operational
and analytical CRM form a closed loop: analytical CRM uses business intelligence (BI) tools to analyze
operational data and the knowledge gained is used for continual optimization of operations.

S., Pletikosa, I., Wagner, J. (2019) Customer relationship management (CRM) is becoming a critical
source of competitive advantage for businesses today. However, many CRM business processes are
deficient and inflexible. For example, many customers are dissatisfied with complaint management.
Still, companies seldom systematically adapt the complaint management process. In theory, operational
and analytical CRM form a closed loop: analytical CRM uses business intelligence (BI) tools to analyze
operational data and the knowledge gained is used for continual optimization of operations. One special
approach in establishing this loop is to continually support decision points in operational processes with
knowledge from BI.

Xing, L., Devasia, S. N. (2020) Influence of customer relationship management on customers’ retention
in Accra,The objective is also to provide a classification of the literature with a comprehensive
bibliography. The top 10 marketing journals, on the basis of SCImago rankings, were chosen for the
study. A total of 56 research papers with 4633 citations emerged out of these top 10 journals for
classification and analysis of different parameters. This research explores how CRM research has
evolved over a period of 10 years in terms of key areas, research types, tools used, and most researched
32
areas.
CrossrefAl Karim, R., Habiba, W. (2020) Customer relationship management (CRM) is one of the
most frequently adopted management tools and has received much attention in the literature. From a
company-wide perspective, CRM is viewed as a complex process requiring interventions in different
company areas. This study advances research on CRM by investigating the impact of the relative
implementation time according to which interventions are implemented in different areas (customer
management, CRM technology, organizational alignment, and CRM strategy) on CRM performance.

33
3.0 RESEARCH METHODOLOGY

3.1 Objective of the Study

 To study the CRM in SBI bank.

 To study factors for an effective CRM implementation in SBI bank.
 To study the consumer responses towards CRM in SBI bank.
 To study the contribution of CRM in customer retention and acquisition.
 To study the importance of selection and implementation of a CRM system inside the SBI
bank.

3.2 Justification of the Study

Customer relationship management codifies the interactions b/w seller and the customer. Same is seen
in the banking sector too. This study is helpful for SBI bank in knowing their relationship with their
customers. It also analyses the satisfaction level of customers towards the SBI bank. To study CRM,
this study has been done as it can ‘t be clearly explained with the help of books so it requires practically
work to explain it effectively.

3.3 Research design

A research design is the arrangement of conditions for collection and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure. The research design
with help to answer the following questions:
 Why the study is being made?
 From where the data needed could be collected?
 What time is required for the study to be competed & how much material is needed?
 What will be the technique for data collections?
 How the data can be analyzed?

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3.3.1 Research design in study: -
The research design has been used in this project is Descriptive in nature. Descriptive research includes
surveys and fact-finding enquiries of different kinds. The main purpose of descriptive research is
description of the state of affairs as it exists at present. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has happened and what is
happening.

3.4 Sample Design

 The convenience sampling method has been used in this study.

3.5 Sampling Unit

SBI Bank customers

SBI Bank employees

3.6 Sample Size

SBI Bank Customers – 100
SBI Bank employees - 25

3.7 COLLECTION OF DATA

The collection of data is a core part of every activities relating to marketing decisions. The information
derived from such data is closely analyzed, Interpreted and a conclusion has been arrived on which
other decisions are totally depends. After the research problem has been identified and selected the next
step is to gather the requisite data. While deciding about the method of data collection to be used for the
researcher should keep in mind two types of data VIZ. primary and secondary

3.8.1 Sources of data collection

Data collection is intact, the most important aspect of a survey. While collecting data utmost care must
be exercised because data constitute the foundation on which the superstructure of statistical analysis is
built. If the data are inaccurate and inadequate the entire analysis may be faulty and the decision taken
would be misleading.

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3.8.1.1 Primary Data:
Primary data is a type of information that is obtained directly from first-hand sources by means of
surveys, observation or experimentation. It is data that has not been previously published and is derived
from a new or original research study and collected at the source such as in marketing. The method of
collection of primary data was through a structured questionnaire..

3.8.1.2 Secondary data:

Secondary data, is data collected by someone other than the user. Common sources of secondary data
for social science include censuses, organizational records and data collected through qualitative
methodologies or qualitative research. Primary data, by contrast, are collected by the investigator
conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the
case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any
individual researcher to collect on their own. In addition, analysts of social and economic change
consider secondary data essential, since it is impossible to conduct a new survey that can adequately
capture past change and/or developments.
The secondary data are those which have already been collected by someone else and which have
already been passed through the statistical process.

3.9 TOOLS TO BE USED FOR ANALYSIS

3.9.1 Graphical and Tabular analysis

The tools used for the analysis are as follows:-
Pie charts: Pie charts are a type of graph that represents data as slices of circle; pie charts are a way to
graphically display data so that they can be analyzed quickly and easily.

Tables: Tables are used to represent the response of the respondents in a precise term so that it become
easy to evaluate the data collected.

Bar Graphs: A bar graph is a chart with rectangular bars with lengths proportional to the values that
they represent. The bars can be plotted vertically or horizontally.

Graphs: Graphs give a visual representation of progress and they are much quicker and easier way to
express data.

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SWOT ANALYSIS OF SBI BANK

SWOT ANALYSIS

Strengths:
 SBI is India’s biggest bank in terms of market share, sales, and reserves.
 SBI has been ranked in the Fortune Global 500 list.
 According to recent reports, the bank has more than 22141 branches and 58555 ATM’s.
 The bank is active in 36 countries involved in currency traders around the world.
 SBI has the first-mover edge of commercial banking facilities.
 SBI recently updated its vision and mission statements indicating an indication of inclination
towards new-age banking services.
 State Bank of India has a huge employee base of 257252 employees.
 SBI has revenue of 143306 Crore rupees (20 billion US Dollars).
 The owner of the State Bank of India is the Government of India.
 SBI has many subisidaries:
• SBI Cards
• SBI Life Insurance
• Jio Payment Bank
• Yes Bank

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 • Andhra Pradesh Grameena Bank
• Kavenri Grameena Bank
• Vikas Bank.

Weaknesses:
 The lack of adequate technology-driven infrastructure relative to private banks
 Employees are hesitant to fix issues efficiently due to better job stability, and the turnaround
period for clients is lengthy relative to private banks.
 The banks pay a large sum on their leased houses.
 SBI has the largest number of employees in the banking sector, which is why the bank spends a
considerable amount of its income on employees ‘ salaries.
 Despite the modernization, the bank still conveys the perception of the traditional bank to new-
age clients.
 SBI does not draw corporate payroll accounts, and any government employee’s payroll accounts
are now transferred.


Opportunities:

 The merger of SBI with five other banks, namely the State Bank of Hyderabad, the State Bank of
Patiala, the State Bank of Bikaner and Jaipur, the State Bank of Travancore and the State Bank
of Mysore, is at the approval stage.
 Mergers would result in a rise in market share to protect its number one spot.
 SBI aims to expand and invest in foreign activities due to a strong inflow of capital from the
Asian economy.
 As some of the banking activities are yet to be modernized, there is a greater opportunity for
leveraging new technology and applications to enhance customer ties.
 Young and talented graduate and B school pools are on the rise to open new horizons for the so-
called “old government bank”.

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Threats:

 Net profit of the year decreased from 9166.05 in the year 2010 to 7.370.35 in the year 2011.
 This indicates that the market share of its close rival ICICI is that.
 Other private banks, such as HDFC, AXIS bank, etc.
 FDIs permitted in the banking sector was increased to 49%, which is a major challenge to SBI as
citizens continue to turn to international banks for better banking services facilities and
technology.
 Other government banks, such as GNP, Andhra, Allahabad Bank, and Indian Bank, are coming
up.
 Customers prefer to switch to private banks and financial service providers for loans and
mortgages, as SBI involves strict verification procedures and takes a long time to process.

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4.0Analysis and interpretation
4.1 Analysis based on response of bank employees:

4.1.1 CRM is highly effective in the banking scenario and helps to improve
the business generation for the SBI bank.

Table 4.1.1
CRM is highly effective in the banking scenario

Option No. of Percentage

respondent
Highly satisfied 4 16%
Satisfied 7 28%
Neutral 5 20%
Dissatisfied 3 12%
Highly 6 24%
dissatisfied

Figure 4.1.1 CRM is highly effective in the banking scenario

Interpretation:

From the above it is concluded that the majority of respondents, almost 28% are satisfied with the
statement that CRM is highly effective in the banking scenario and helps to improve the business
generation for the SBI bank, whereas a very few dissatisfied with the statement.

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4.1.2 It becomes difficult for the employees to maintain all the data in CRM system
and is highly time consuming.

Table 4.1.2
Difficulty for the employees to maintain data in CRM

OPTIONS NO. OF PERCENTAGE

RESPONDENT
Strongly agree 4 16%
Agree 4 16%
Neutral 3 12%
Disagree 6 24%
Strongly Disagree 8 32%

Figure 4.1.2-Difficulty for the employees to maintain data in CRM

Interpretation:

CRM codifies the interaction b/w the seller and the customer. Hence, majority of respondents, almost
56% are strongly disagreeing & disagree with this. It becomes difficult for the employees to maintain all
data in the CRM system n is highly time consuming.

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4.1.3 It is important to use CRM system as it acts as a central data repository so
that all employees can share customer data and benefit from it.

Table 4.1.3
CRM System as a central data Repository

OPTIONS NO. OF RESPONDENTS PERCENTAGE

Strongly disagree 1 4%

Disagree 6 24%

Neutral 4 16%

Agree 9 36%

Strongly Agree 5 20%

Figure 4.1.3 CRM System as a central data Repository

Interpretation: CRM if implemented properly benefits both customers and the organization. 56% of
the respondent agrees to use the CRM as central data repository so that all employees can share
customer data and benefit from it

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4.1.4 CRM system is important as it helps in building long term relationship with
the customers and involving them to become partners with the bank.

Table 4.1.4
CRM System helps in building long term relationships with customers
OPTIONS NO. OF RESPONDENTS PERCENTAGE

Strongly Disagree 6 24

Disagree 8 32

Neutral 4 16

Agree 5 20

Strongly Agree 2 8

Figure 4.1.4 CRM System helps in building long term relationships with customers

Interpretation:

Building long term relationship with customer is very important for any organization & CRM manages
company interaction with current and future customers. But majority of respondents are disagree with
the statement that CRM system is important as it helps in building long term relationship with the
customers and involving them to become partners with the bank.

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4.1.5 CRM system is an effective tool for scheduling and monitoring interaction
with the customers and tracking customers’ responses.

Table 4.1.5
CRM System is an effective tool for scheduling & monitoring interaction with customers

OPTIONS NO. OF RESPONDENTS PERCENTAGE

Strongly Disagree 2 8%

Disagree 4 16%

Neutral 5 20%

Agree 8 32%

Strongly Agree 6 24%

Figure 4.1.5 CRM System is an effective tool for scheduling & monitoring interaction with customers.

Interpretation:

CRM manages company‘s interaction with present & future customers. And same is felt by 32% of the
respondent as they agree that CRM system is an effective tool for scheduling & monitoring interactions.
And only 10% disagrees with it.

44
4.1.6 CRM is an effective tool for segmenting and targeting customers based on
attributes such as demography, age, gender, personal interest, income etc.

Table 4.1.6
CRM is an effective tool for segmenting & targeting customers
OPTIONS NO. OF RESPONDENTS PERCENTAGE

Highly satisfied 6 24%

Satisfied 8 32%
Neutral 4 16%
Dissatisfied 4 16%
Highly satisfied 3 12%

Figure 4.1.6 CRM is an effective tool for segmenting & targeting customers
Interpretation:

From the above, it can be concluded that 32% satisfied with the statement that CRM is an effective tool
for segmenting & targeting customers based on attribute like demographic (age, income) etc.

45
4.1.7 Rate the overall satisfaction and impression of effectiveness of CRM system in
SBI bank.
Table 4.1.7
Overall Satisfaction & impression of effectiveness of CRM System
OPTION NO. OF RESPONDENT PERCENTAGE
HIGHLY SATISFIED 5 20%
SATISFIED 5 20%
NEUTRAL 12 50%
DISSATISFIED 2 8%
HIGHLY 1 2%
DISSATISFIED

Highly Dissatisfied
2%
Dissatisfied
8%
Highly Satisfied
20%

Satisfied
20%
Neutral
50%

Figure 4.1.7 Overall Satisfaction & impression of effectiveness of CRM System

Interpretation:
Satisfaction level in any case for customer is very important consideration for any organization. Hence,
40% of the respondents were satisfied with the impression of CRM system & almost 50% were neutral
regarding the same.

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4.1.8 Do you think better work will be done if CRM is made better?
Table 4.1.8
Better work will be done if CRM is made better.

OPTION NO. OF PERCENTAGE

RESPONDENT
Strongly disagree 2 8%
Disagree 4 16%
Neutral 8 32%
Agree 5 20%
Strongly Agree 6 24%

Figure 4.1.8 Better work will be done if CRM is made better

Interpretation:

CRM if made better will boost the growth of an organization. Hence, 44% of the respondents are fully
agree with the statement that yes work will be done better if CRM is made better in correspondence to 8
% respondents who disagree with this.

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4.1.9 Have you implemented and evaluated CRM in SBI bank?

Table 4.1.9
Implementation & Evaluation of CRM
OPTION NO. OF RESPONDENT PERCENTAGE
YES 19 75%
NO 6 25%

80%

70%

60%

50%

40%
75%
30%

20%

10% 25%

0%
yes no

Figure 4.1.9 Implementation & Evaluation of CRM

Interpretation:

CRM is of no use unless & until it is evaluated. So, in order to check its efficiency respondents are
asked whether CRM is being evaluated then 75 % of the respondent agree with this & only 25%
disagree with the same.

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4.1.10 Has SBI bank redesigned jobs according to the requirement of the CRM?

Table 4.1.10
Redesign of jobs according to the requirement of CRM
OPTIONS NO. OF RESPONDENTS PERCENTAGE

Strongly Disagree 5 20%

Disagree 6 24%

Neutral 1 4%

Agree 7 28%

Strongly Agree 6 24%

Figure 4.1.10 Redesign of jobs according to the requirement of CRM

Interpretation:

Adopting CRM brings little changes in the organization. Hence, 52% of the respondent believe that the
bank has redesigned jobs according to the requirement of CRM, whereas 24% disagree with the
statement.
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4.1.11 Has SBI benchmark the organization performance with the best practice of
other bank?

Table 4.1.11
Benchmark of organization performance with best practices of other banks
OPTIONS NO. OF RESPONDENT PERCENTAGE

Strongly Agree 6 24%

Agree 8 32%

Neutral 3 12%

Disagree 4 16%

Strongly Disagree 4 16%

Figure 4.1.11 Benchmark of organization performance with best practices of other banks

Interpretation:

Benchmarking is a specific indicator which is used to measure performance in this 51% of the
respondents are in favour of that SBI bank has benchmarked in performance with best practices of other
banks corresponding to 49% of the respondents who are not in the favour of the same.

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4.2 Analysis based on the responses of customers:

4.2.1 Which type of account/accounts do you have?

Table 4.2.1-
Type of Accounts
OPTION NO. OF RESPONDENT PERCENTAGE
SAVING 47 47%
CURRENT 13 13%
FIXED DEPOSIT 34 34%
RECURRING 3 3%
DEPOSIT
CASH CREDIT 3 3%

Savings Current Fixed Deposit Recurring Deposit Cash Credit

3% 3%

47%
34%

13%

Figure 4.2.1-Type of Accounts

Interpretation:
From the above it can be concluded that the respondent have multiple types of accounts in a bank the
majority of them have saving accounts (47%), fixed account (34%) and cash credit (3%).

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4.2.2 DO you use online banking?

Table 4.2.2-
Online Banking
OPTION NO. OF RESPONDENT PERCENTAGE
YES 44 44%
NO 56 56%

60

50

40

30
44 56
20

10

Yes

No

Figure 4.2.2-Online Banking

Interpretation:

Online banking is adopted by many customers as it is convenient but sometimes it is not considered safe
and hence 56% of the respondents said that they do not use online banking facility corresponding to
44% of respondent.

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4.2.3 Are you aware of what is CRM?

Table 4.2.3-
Awareness of Customers about CRM

OPTION NO. OF RESPONDENT PERCENTAGE

YES 63 63%
NO 37 37%

70

60

50

40
63
30

20
37
10

YES
No

Figure 4.2.3-Awareness of Customers about CRM

Interpretation:

CRM is now emerged successfully and people are aware of it. Same is seen in the above graph that 63%
of the respondents are aware about CRM concept whereas only 37% are not aware of it.

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4.2.4. Does SBI bank entertains your queries in proper manner?
Table 4.2.4-
Bank People entertain Queries of Customers
OPTIONS NO. OF RESPONDENT PERCENTAGE

Strongly Disagree 4 16%

Disagree 5 20%

Neutral 2 8%

Agree 6 24%

Strongly Agree 8 32%

Figure 4.2.4-Bank People entertain Queries of Customers

Interpretation:

SBI bank is known for its problem solving feature.it entertains queries of the customer. 32% of the
respondent strongly agrees that yes SBI bank entertain their customers. whereas only 20% don‘t feel so.

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4.2.5 Rate your overall satisfaction level with the bank’s services.

Table 4.2.5-
Overall satisfaction level with the Bank’s Services
OPTION NO. OF RESPONDENT PERCENTAGE
HIGHLY SATISFIED 20 20%
SATISFIED 39 30%
NEUTRAL 18 20%
DISSATISFIED 20 13%
HIGHLY DISSATISFIED 3 7%

Highly Dissatisfied, 3

Highly
Satisfied, 20
Dissatisfie
d, 20

Nuetral, 18
Satisfied, 39

Figure 4.2.5-Overall satisfaction level with the Bank’s Services

Interpretation:

Satisfaction level is very important for any organization. Satisfaction level of customers of SBI bank
with its services is 50 – 50. 50% of the respondents are satisfied whereas 50% are not.

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4.3 Statistical Analysis

4.3.1 Hypothesis

Null Hypothesis: There is no significant difference between male and female regarding awareness
about CRM in banking.
Alternate Hypothesis: There is significant difference between male and female regarding awareness
about CRM in banking.

Table 4.3.1:-
Expected and observed respondent
Private Public Total
Male 37(37.8) 23(22.2) 60
Female 26(25.2) 14(14.8) 40
Total 63 37 100

Chi-Square test or test=

Table 4.3.1.1:-
Chi-square test
Calculated value Degree of freedom(n-1) Tabulated value
Chi-square 0.1134 1 3.84

Interpretation:

From the above table it can be interpreted that the calculated value of Chi-Square is less than Tabulated
value i.e. 0.1134< 3.84 The null hypothesis (H0) is accepted in favour of alternate hypothesis and
concluded that there is a no significant difference between male & female regarding awareness about
CRM in banking.

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5.1 FINDINGS

 The majority of respondents, almost 28% are satisfied with the statement that CRM is highly
effective in the banking scenario and helps to improve the business generation for the banks.
 The majority of respondents ,almost 32% are strongly disagree with the statement that it
becomes difficult for the employees to maintain all the data in CRM system and is highly time
consuming.
 The majority of respondents, almost 36% are agrees with the statement that, it is important to
use a CRM system as it acts as a central data repository so that all employees can share customer
data and benefit from it.
 A number of respondents, almost 32% are disagree with the statement that, CRM system is
important as it helps in building long term relationships with the customers and involving them
to become partners with the bank.
 The majority of respondents, almost 32% are agrees with the statement that, CRM system is an
effective tool for scheduling and monitoring interactions with the customer and tracking
customer responses.
 Many of the respondents, almost 56% are satisfied with the statement that, CRM system is an
effective tool for attracting new customers through campaigns and promotions, whereas a very
few are dissatisfied with the statement.
 The majority of respondents, almost 44% agreed with the statement that, better work will be
done if CRM is made better.
 The majority of respondents, almost 60%, think that time has come to make use of CRM
extensively in banks, whereas a very few of them disagree with the statement.
 Many of the respondents, almost 60% disagree with the statement that, they have implemented
and evaluated CRM in their bank, whereas a few of them agreed with the statement.
 The majority of respondents, almost 50% agree with the statement that, they have improved
customer handling and customer relations through CRM.
 The majority of Bank customers, almost 63% said YES they are aware of what is CRM, whereas
a 37% respondents are unaware of what is CRM.
 The majority of Bank customers, almost 70% are satisfied and comfortable with the bank
officials collecting their personal details.

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 The majority of the respondents, almost 60% of them Disagree with the statement that their
banks value them, whereas a few of them Agree with this statement.
 A number of respondents, almost 50% agreed to the statement that, their bank considers
‘customers as king’, whereas few of them agreed to this statement

 The majority of respondents, almost 65% are Satisfied with the services provide by their bank,
whereas a few of them are dissatisfied with their banks’ services.
 Many of the respondents, almost 28% are agreed with the statement that SBI bank redesigned
jobs acording to the requirement of CRM.

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5.2 SUGGESTIONS
1. The banks have to rise to the occasion and perfect their CRM strategies which would benefit the
customers in plenty.
2. The banks should also scientifically evaluate the various factors associated with the practice of CRM
in order to find out the most appropriate tools, technologies and techniques which would deliver goods
to the best of the satisfaction of the customers.
3. The employees should also be motivated to understand and incorporate the art and craft of CRM in
order to attract and involve large number of customers in the various banking operations.
4. Banking sector management needs actively to articulate the need for an improved and consistent
customer experience and branch managers should localize this approach and coach their staff to deliver
it.

Further it is observed that banks lose their best clients to competitors due to a variety of reasons.
Experts opine that inefficient and improper service is one major reason. The remedies suggested by
them are that banks should adopt customer relationship building approaches such as responding to
complaints instantaneously, analyzing the attrition of the clients in a particular product, and rating of
services across the network of branches, and the creation of a suggestion box to elicit the views and
suggestion of their employees. Another dimension of the relationship building exercise is to obtain an
electronic feedback from customers to understand the level of acceptance of existing products, which
will facilitates in developing better products.

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5.3 CONCLUSION

The practice of CRM is widely acknowledged as an important component of marketing management

and corporate communication management processes in Indian banks but unfortunately applications of
CRM is not favorable. Advanced information and communication technologies are also widely utilized
by the Indian banks to enrich the process of organizational management in general and customer
relations management in particular. Most of the public and private banks have adopted the practice of
CRM and enriched the process of marketing considerably over a period of time in India, but still they
are in the half way. The role of CRM in the development and management of banking services in India
and other developing nations of the world has been a subject of debate discussion and research. The
present study evaluates the Customer Relationship Management practices adopted by the Indian
banking industry. The relationship between banking and CRM practices is such that nowadays it is
almost impossible to think of the former without the latter. India is not an exception to this universal
realization on adoption of CRM practices in banks and other institutions. CRM practices are
contributing immensely towards improving the bondage between banks and customers who matter most
in the contemporary business world in India and other developing nations. The outcomes of the present
study would help the policy makers in Indian banks to formulate suitable CRM intervention strategies
and use appropriate methods for the enhancement of the status of banking sector. So in nut shell we can
say; the practice of CRM in the public and private banks of India is less understood due to lack of
Comprehensive investigation.

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