BANKING SERVICES Chinmoy DasINTRODUCTION + The term bank is either derived from old Italian word banea or from a French word banque both mean a Bench or money exchange table. + A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses.HISTORY OF BANKING IN INDIA * The first bank in India was established in 1786. From 1786 till today it has gone through three distinct phases. + PHASE 1 Early phase from 1786 to 1969 of Indian banks. * PHASE 2 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. * PHASE 3 New phase of Indian Banking system with the advent of Indian Financial & Banking Sector Reforms after 1991.DEFINITION Section 5 (b) of the Banking Regulation Act 1949 defines “Banking” as + “Accepting for the purpose of lending and investment, deposits of money from the public repayable on demand or otherwise and withdraw able by cheque, draft, order or otherwi In simple words, Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.Contribution towards GDP of India * The total bank deposits increased from Rs. 9.1 billion($960 million) in 1970-71 to Rs, 8309.22 billion ($620 billion) in 2009-10, Current deposit is Rs. 67504.54 billion($1.1 trillion). * There are total 151 commercial banks in India by 2013 with total of 1,09,811 number of branches. + It contributes INR 243294 Cr. to India’s GDP. + Service sector contribution is 57.3% to India's economy. And out of this 57.3%, banking sector contributes 80%.Major Players in India (OLIN ama & Central Bank tA Union Bank Zien — yes / BANK sateen tina citi ba n kK Ariana Bank comm «HSBC x) fy XS BANK inausing 5, The world's local bankInternational Bank (Competitor) HSBC «X) The world’s local bankMarketing Mix * PRODUCT * PRICE * PLACE * PROMOTION * PEOPLE * PROCESS + PHYSICAL EVIDENCEState Bank of India State Bask of iin Founded on 2” July 1806as Bank of Calcutta, Bank of Madras merged into the other two “presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India. * Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. + State Bank of India (SBI) is an Indian multinational, Public Sector banking, and finaneial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra,Market Capture sinenteca at et isin tan est songs nnn 2 §B0000 ~ 0000 ie od 3 100000 = oo i= 100 a 8 rrr PEGGGPPPP PGR BENTH craterPRODUCT State Bask of inn + DEPOSITS * ADVANCES & LOANS * CONSULTANCY + INVESTMENTS + INTERNATIONAL BANKIKNGContd.. State Bask of ain + CARDS: CREDIT CARD, ATM CARD, TRAVELERS CARD * DEMAT SERVICES * ONLINE MONEY TRANSFER * MOBILE BANKING, INTERNET BANKING on * AGRICULTURAL BANKING, MICRO CREDIT, ete.PRICING Sine bk fai + INTEREST RATES + CONSULTING FEES + COMMISSION Parameters for determining Price: * Bank product group price specification * Bank product price specification * Business partner price arrangement + Business partner price agreement.PLACE State Bask of iin + BRANCH Enjoy the uiess \ of bani * ATM athome ss * HOUSE / OFFICE (INTERNET BANKING & MOBILE BANKING)Q o 5 5 a 2 3 & & Mkt share in value terms (°6) a 8 ° SBI enjoys 50% market share in mobile banking icICl can HDFC AXIS State Bask of iainPROMOTION * ADVERTISING - Television, radio, movies, theatres. State Bask of nin * PRINT MEDIA- Hoardings, newspaper, magazines. * PUBLICITY- Road shows, campus visits, sponsorship. * SALES PROMOTION.- Gifts, discount and commission, incentives, ete. + PERSONAL SELLING- Cross-sale (selling at competitors place), personalized servicee sim aaa Exclusive O F F . ; Wine & Dine SBICR2012 offers for SBI Card Holders. Sat Card OsBI iaroNiceT MARATHONState Bask of ain Here's announcing the orival of Exclusivity Presenting the IRCTC SBI Platinum Card es SBI Cardete Ghee Cilio Le) eG]PEOPLE State Bask of lain * BRANCH MANAGER + FRONT LINE OFFICERS * EMPLOYEES + CUSTOMERSPROCESS ee en Bieter For opening a AccountProcess of Recruitment State Bank of India (SBI) ‘About SB) Bank aD fee —-E-E- Previows pedisPHYSICAL EVIDENCE + SIGNAGE* BILLBOARDS AND HOARDINGS.+ Financial Reports- The Company's financial reports issued to the customers. + Tangibles- Pens, Writing Pads to the internal customers, Passbook and Cheque books to the customers. 9 + Punch lines- “With You All the Way* - SBI, "Hum Hai Naa”- ICICI, “World’s Local Bank” — HSBC * Employee's Dress Codered ICICI] BANK ICICI Bank was established by the Industrial Credit and Investment Corporation of India (ICICI), an Indian financial institution, axa wholly owned subsidiary in 1994. The parent company wats formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public- sector insunince Companies to provide phdject financing to Indian industry, Tn the 1990s, ICICT transformed its business from a development financial institution offering only project finance to-a diversified financial services group. offering a wide variety of products and services, both directly and thraugh a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. ICICI Bank is India's fargest private sector bank with total assets of Rs. 5,946.42 billion (USS 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (USS 1,637 million) for the year ended March 31, 2014. ICICI Bank currently has a rietwork of 3,820 Branches and 11,798 ATM's. across India,Contd.. rey * In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size. * In September 2013, ICICI Bank launched a one of its kind app on Facebook ‘Pockets by [CECI Bank' to enable customers to carry out a wide range of financial transactions on Facebook Customers can access the ICICI Bank app by logging into their Facebook account and then going to the official ICICI Bank Facebook page, and clicking on the tab for Pockets by ICICI] Bank. * ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet Banking awards.Products Account and Deposits + Titanium Privilege Savings Account, + Family Banking Investments. * Investments + Mutual Fund, Forex * Gold sree prrere ty Insurance + Life Insurance + Health Insurance + Complete Health Insurance Policy * Health Care Plus * Personal Protect Insurance Policy * Home Insurance * Car Insurance * Two Wheeler Insurance + Mobile Banking, Internet BankingPlace ret * Branch + ATMs » At Home, Offices (Internet Banking, Mobile Banking) “* Has 1900 branches across India and 33 in Mumbai. HePromotion berate * Advertising - Television, radio, movies, theatres + Print Media- Hoardings, newspaper, magazines * Publicity- Road shows, campus visits, sandwich man, Sponsorship * Sales Promotion- Gifts, discount and commission, incentives, etc. * Personal Selling- Cross-sale (selling at competitors place), personalized service\Grcacrmate 2 a ie aaa. BLOCKBUSTERPhysical Evidence rele 2. Financial Reports- The Company’s financial reports are issued to the customers to emphasis or credibility.Tangibles- Pens, Writing Pads to the internal customers. Passbook By and Cheque books to the customers. 7 Se ea, —— =e: ed 4. Billboards and Hoardings. 4, Punch line - “Hum Hai Naa”Segmentation Tier-I — Mortgage, Auto loan, Education Loan, Investment & Insurance Tier -II-Housing Loan, 2 wheeler Loan, Gold Loan, Credit Card, Mutual Funds. Tier-IIl- Loan Against Property, Fixed Deposits, Insurance. Rural & Semi -urban Branches- Agriculture Loans, Motor Loans, Etc.Target People * Banks target all age group of people between 10-59, 60 and above. * Child’s savings account can be opened by their parents, for studies & other purposes, * Scheme for students availing “Student's Account” i.e. whose minimum balance is zero. * And other various schemes and plans for adults and old people.THANK YOU