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ANALYZING THE WORKING CAPITAL BANKING REQUIREMENTS OF MANUFACTURING COMPANIES AND DESIGNING A SOLUTION TO SUIT THEIR BANKING REQUIREMENTS

Presented by Manju Khubchandani Aishwarya Tiwari Project Guide Mr. Jateen Waghdhare

Index
WHY? Objective Research Methodology Data Analysis Leads Generated Recommendations Experience - Learning Take Away

WHY?

Dhanlaxmi Bank is new entrant in Pune. Fragmented information on companies Collation of database inclusive of turnover/contact persons etc is time consuming and inefficient for SM/RM.

Cold Calling requires time for conversion and closure of deal. Big SME market/market mapping

Objective
Understanding the decision making process on selection of working capital banker by a manufacturing companies. Identification of the parameters behind selecting the working capital banker. Identification of potential customers for Dhanlaxmi Bank in SME sector in Pune city. Identification of the current banking structure and the banking problems faced by manufacturing company. Identification of services that would create a demand for Dhanlaxmi Bank.

Research Methodology
Sample selection. Database Creation. Criteria to prepare the database . Manufacturing companies. Turnover of the company : more than 10 crores. Area: MIDC Pimpri , Chinchwad, Bhosari. Source for database.

Research Methodology
Exploratory Research Customer Banker Questions Parameters Requirements Problems Findings Nationalized bank. International presence. Branches. Documentation /Procedure. Grievance handling. Flexibility.

Research Methodology
Questionnaire Preparation. Based on exploratory research.

Sample survey. Geographical Division. Appointment. Telephonic. Area wise.

Data Analysis Bank Selection Parameters

Respondents preferring a bank on the basis of:1. Reputation of the bank 2. No of branches 3. Banks flexible in sufficing changing Needs of the client

Data Analysis Current Bank Problems

- 45% customers facing some problem with their existing bankers - Transaction related services a major problem with existing bankers

Data Analysis Current Bank Satisfaction

None of the customers dissatisfied with their current bankers 28% of customers willing to add new bank for working capital facilities More than 50% Customers neutral on satisfaction level , willing to add new bank

Data Analysis Interest Rate Sensitivity


Total responses - 44

68% of the customers selecting neutral on satisfaction level for interest rate are willing to add a new bank 68% of customers surveyed are in the interest range of 10-11.5% Interestingly 2 customers in higher interest range willing to add a new bank (Out of 4 as shown in graph)

Data Analysis Customers / Suppliers

Export Sales (% Turnover)

Imports (% Turnover)
11

12 10

Responses - 32

Responses - 33

10

5 4 4 3 3 3

<12%

12-24%

24-36%

36-48%

>48%

<10%

10-20%

20-30%

30-40%

>40%

- Most of the manufacturing setup source raw material from outside Pune - 75% of the companies surveyed are into exports - Overall customers satisfied with NFB facilities from their existing bankers

Data Analysis NFB Cost Sensitivity


Co ission for Non Fund Based Fa ility
13 11

Responses - 42

6 5

< .75%

.75-1.25%

1.25-1.75%

1.75-2.25%

- Customers prefer keeping more margin than increasing commission - 31% of customers surveyed are paying commission between 1.25% - 1.75% - Clear opportunity to convert 7 customers (>2.25%) basis cost savings

>2.25%

Data Analysis NFB Cost Sensitivity

- Ideally Higher the exports/imports higher the bargaining power for the customer and lower the commission - Opportunity to pitch lower commission and convert customer on cost savings

LEADS GENRATED

-15 leads generated - Turnover ranging from 10 Cr to 400 Cr - 13 clients having either export or import - All 15 using NFB facilities - 13 clients disclosed their current range of Cash Credit interest rates

Recommendations
1. Customers prefer proximity toward bank branch. Dhanlaxmi Bank should have a branch in MIDC area 2. Sales call should include banks pro-activeness to address clients changing requirements in terms of products and limits 3. Sales call should include banks pro-activeness to address transaction related convenience to the clients 4. Ample measures should be taken to promote the bank at the local level to create awareness of the bank.

Experience Learning Take Away


1. Making Cold Calls How to convince a stranger Confidence 2. Taking Appointments How to ensure an appointment Communication Skills 3. Seeking specific Information How to mould your discussion in the right direction Communication Skills 4. Speaking to receptionist for connecting the call to the right person Persistence Softer skills 5. Overlapping and rescheduled appointments Always keep a backup option Time Management 6. Travelling to the respondents in rains on a two wheeler Still be presentable Hard work pays 7. Interacting with range of deranged people Patience Limit of patience 8. Visiting MIDC area Knowing MIDC area We know the roads now!!

THANK YOU!!