OBJECTIVE OF THE PROJECT

PRIMARY OBJECTIVES

To judge the business potential for DHANLAXMI BANK. To compare products and services offered by major

Private Banks. To judge the level of competition at specified market

around 5 Kms. area of the branch office.

To judge the awareness level of Dhanlaxmi Bank.

SECONDARY OBJECTIVES

To promote the products and services offered by Dhanlaxmi Bank.

To increase the awareness level of Dhan Bank.

RESEARCH METHODOLOGY

This section deals with the methodology employed to carry out the project. A well structured process is important for the successful execution of a good field work. It is important to develop good background information before actually interviewing the respondents.

1. Research Design:-After analyzing problem statement and objectives of the study the design of research was set to be exploratory research.

2. Sampling Design:-

SOURCE LIST:-the sample frame was drawn by short listing the markets around 5 Kms. of branch.

SAMPLING METHOD:-sampling technique applied for conduction of the survey is Non Probability Sampling. The units were selected on the basis of Convenient Sampling. Convenience in terms of proximity, communication, interest of respondents was preferred.

3. DATA COLLECTION:- PRIMARY DATA COLLECTION SECONDARY DATA COLLECTION:-Secondary data is collected

via internet, books, journals company website and brochures etc. which provided adequate information for comparative study of products and services offered by private banks.

LIMITATIONS OF THE STUDY

Respondent Non Co-operation

Many respondents were unwilling to disclose information about their banking and investment due to suspicion, lack of time, lack of interest.

Reliability of Competitor Details

Most of competitor details were gathered through secondary data sources other than linked directly to competitor. The data collected through these sources might not be reliable which can deviate the analysis results.

Time Shortage

The project duration to be insufficient to attend to all the components of research problem. Occasionally compromises over quality and quantity were made due to time acuteness.

RETAIL BANKING

DEFINITION:

“Retail banking is typical mass-market banking where individual

customers use local branches of larger commercial banks. Services

offered include: savings and checking accounts, mortgages, personal

loans, debit cards, credit cards, and so”

The Retail Banking environment today is changing fast. The changing

customer demographics demands to create a differentiated application based

on scalable technology, improved service and banking convenience. Higher

penetration of technology and increase in global literacy levels has set up the

expectations of the customer higher than never before. Increasing use of

modern technology has further enhanced reach and accessibility.

The market today gives us a challenge to provide multiple and innovative

contemporary services to the customer through a consolidated window as so

to ensure that the bank’s customer gets “Uniformity and Consistency” of

service delivery across time and at every touch point across all channels. The

pace of innovation is accelerating and security threat has become prime of all

electronic transactions. High cost structure rendering mass-market servicing is

prohibitively expensive.

Present day tech-savvy bankers are now more looking at reduction in their

operating costs by adopting scalable and secure technology thereby reducing

the response time to their customers so as to improve their client base and

economies of scale.

The solution lies to market demands and challenges lies in innovation of new

offering with minimum dependence on branches – a multi-channel bank and to

eliminate the disadvantage of an inadequate branch network. Generation of

leads to cross sell and creating additional revenues with utmost customer

satisfaction has become focal point worldwide for the success of a Bank.

Today’s retail banking sector is characterized by three basic characteristics:

Multiple products (deposits, credit cards, insurance, investments and

securities)

Multiple channels of distribution (call center, branch, internet)

Multiple customer groups (consumer, small business, and corporate).

STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

Constant product innovation to match the requirements of the customer

segments

The customer database available with the banks is the best source of their

demographic and financial information and can be used by the banks for

targeting certain customer segments for new or modified product. The

banks should come out with new products in the area of securities, mutual

funds and insurance.

Quality service and quickness in delivery

As most of the banks are offering retail products of similar nature, the

customers can easily switchover to the one, which offers better service at

comparatively lower costs. The quality of service that banks offer and the

experience that clients have, matter the most. Hence, to retain the

customers, banks have to come out with competitive products satisfying

the desires of the customers at the click of a button.

Introduction of new delivery channels

Retail customers like to interface with their bank through multiple

channels. Therefore, banks should try to give high quality service across all

service channels like branches, Internet, ATMs, etc.

Tapping of unexploited potential and increasing the volume of business

This will compensate for the thin margins. The Indian retail banking market

still remains largely untapped giving a scope for growth to the banks and

financial institutions. With changing psyche of Indian consumers, who are

now comfortable with the idea of availing loans for their personal needs,

banks have tremendous potential lying in this segment. Marketing

departments of the banks be geared up and special training be imparted to

them so that banks are successful in grabbing more and more of retail

business in the market.

Infrastructure outsourcing

This will help in lowering the cost of service channels combined with quality

and quickness.

Detail market research

Banks may go for detail market research, which will help them in knowing

what their competitors are offering to their clients. This will enable them to

have an edge over their competitors and increase their share in retail

banking pie by offering better products and services.

Cross-selling of products

PSBs have an added advantage of having a wide network of branches,

which gives them an opportunity to sell third-party products through these

branches.

Business process outsourcing

Outsourcing of requirements would not only save cost and time but would

help the banks in concentrating on the core business area. Banks can

devote more time for marketing, customer service and brand building. For

example, Management of ATMs can be outsourced. This will save the banks

from dealing with the intricacies of technology.

Tie-up arrangements

PSBs with regional concentration can reap the benefit of reaching

customers across the country by entering into strategic alliance with other

such banks with intensive presence in other regions. In the present regime

of falling interest and stiff competition, banks are aware that it is finally the

retail banking which will enable them to hold the head above water. Hence,

banks should make all out efforts to boost the retail banking by recognizing

the needs of the customers. It is essential that banks would be imaginative

in predicting the customers' expectations in the ever-changing tastes and

environments. It is the innovative and competitive products coupled with

high quality care for clients will only hold the key to success in this area. In

short, bankers have to run very fast even to stay where they are now. It is

the survival of the fastest now and not only survival of the fittest.

BANKING BASICS

The Indian banking industry which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories.

Scheduled Banks Non-scheduled Banks

FIGURE:-1 STRUCTRE OF INDIAN BANKING INDUSTRY

Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks(old/new domestic and foreign)

Banking regulation act of India, 1949 defines banking as “accepting, for the purpose of lending or investment of deposits of money from the public,

repayable on demand or otherwise and withdraw able by cheques, draft and order or otherwise.”

In addition, Banks are allowed to perform certain activities which are ancillary to this business of accepting deposits and lending. A bank’s relationship with the public, therefore, revolves around accepting deposit and lending money. Another activity which is assuming increasing importance is transfer of money, both domestic and foreign, from one place to another. This activity is generally known as “Remittance Business” in banking parlance. The so called forex (foreign exchange) is largely a part of remittance. It involves buying and selling o0f foreign currencies.

The law governing Banking Activities in India is called “Negotiable Instrument Act 1881”. The banking activities can be classified as:

Accepting deposits from public/others Transferring money from one place to another Acting as trustees Keeping valuable in safe custody Collection business Deposits Loans Lending money to public

HISTORY

Banking in India originated in the last decades of the 18th century with The General Bank of India which came into existence in 1786. This was followed by The Bank of Hindustan. Both of these are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta (later Bank of Bengal) in June 1806. A couple of decades late, foreign banks like Credit Lyonnais started their Calcutta operations in 1850s. 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 these 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 of India was nationalized and given broader powers.

POST-INDEPENDENCE

The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 th

July 1969.

NATIONALIZATION

By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalize the banking industry. The Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."

After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

LIBERALISATION

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank.

This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

CURRENT SITUATION

Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 49,000 ATMs.

The industry is currently in a transition phase. On the one hand, the Public Sector Banks which are the mainstay of Indian banking system, are in the process of shedding their flab in terms of excessive manpower, excessive Non Performing Assets (NPAs) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions.

With he growth in the Indian economy which is expected to be strong for services sector, the demand for the banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect mergers and acquisitions, takeovers and asset sales.

Banking industry has completely moulded the system with some great technological developments and few revolutionary thoughts. Introduction of MIS (MANAGEMENT INFORMATION SYSTEM), HRIS (HUMAN RESOURCE INFORMATION SYSTEM), ERP SYSTEMS has made this system quick and efficient.

Investment is the part of services sector which is facing a tough competition these days. Both the public and private sector banking institutions are the major players.

The scenario which they have brought up in the market through their unpretentious hardworking and high quality work, has made a cluster breaking entry in the era of competition.

TRADITIONAL BANKING

Traditionally the relationship between bank and its customer has been

on a one-to-one level via the branch network. This was put into operation with

clearing and design making responsibilities at the individual branch level. The

head office had the responsibility for the overall clearing network, the size of

the branch network and the training of staff in the branch network. The branch

monitored the organizations performance and set the decision making

parameters, but the information available to both branch and their customers

was limited to one geographical location.

FIGURE:-2 Traditional banking structure

Customer Customer Customer

Bank Branch

Clearing Decision

Bank Branch

Clearing Decision

Bank Branch

Clearing Decision

Central clearing Central clearing

RELATIONSHIP BANKING

The modern bank cannot rely on its branch network alone. Customers

are now demanding new, more convenient, delivery systems. And services

such as internet banking have a dual role for the customer thus increasing the

productivity of this sector. They provide traditional banking service, but

additionally offer much greater access to information on their account and on

the banks many other services. To do this banking has to create information

layers, which can be accessed both by bank staff as well as by the customers

themselves.

The use of interactive electronic links via the internet can go a long way

in providing the customers with greater deal of information about both their

financial situation and about the services offered by the bank.

FIGURE:-3-RELATIONSHIP BANKING

Customers

Telephone, Branch, Electronic Banking, etc.

Shared Information

Clearing systems Head Office Risk Monitoring

COMPANY PROFILE:

Dhanalakshmi Bank Ltd was incorporated on 14th November 1927 by a group of enterprising entrepreneurs at Thrissur city, the "Cultural Capital of Kerala" with a capital of Rs 11,000 and 7 employees. It became a Scheduled Commercial Bank in the year 1977. It has now attained national stature with 181 branches and 26 Extension Counters spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi and West Bengal. in 2010 they were started the six branch in Gujarat[Vadodata, Ahmedabad, Veraval, Palanpur, Bardoli]

The Dhanalakshmi Bank has deployed technology widely as an instrument for enhancing the quality of customer service. It has introduced Centralized Banking Solution (CBS) on the Flexcube Platform at all its branches for extending anywhere/anytime/anyhow banking to its clientele through multiple delivery channels. The bank has set-up a state-of-the-art Data Centre in Bangalore, to keep the networked system operational round the clock. A Disaster Recovery Centre is also operational at Thrissur for meeting various contingencies.

Vision & Mission

To be amongst the top 5 Private Sector Banks in terms of

Bank’s Balance sheet size Profits Branch network Asset Quality

To be a large profitable “A” rated bank.

 

Achievements, Affiliations and Milestones

Achievements Serviced business worth Rs. 8,212 crores as on 31 March 2009,

comprising deposits worth Rs. 4,969 crores and advances worth Rs. 3,245 crores.

Earned a net profit of Rs. 57.45 crores for the financial year ended 31st March 2009, with a capital adequacy ratio of 14.44% during the same period.

Put in place the Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems to facilitate large value payments and settlements online in real time, on a transaction-by-transaction basis.

Set up NRI Boutiques (Relationship Centres) across nine locations in Kerala and Tamil Nadu, with plans to open specialized NRI outlets at potential locations with emphasis on impeccable service levels.

Dispensed Micro Credit among private and public banks in Kerala, the Bank's outstanding under micro credit was Rs. 124.40 crores at the end of March 2009.

Attained ISO 9001-2000 certification for the Bank's corporate office at Thrissur and industrial finance branch at Kochi.

Affiliations

Major Exchange Houses UAE Exchange Centre LLC Al Ahalia Money Exchange Bureau UAE Exchange Centre WLL

Foreign Correspondent Banks Deutsche Bank Trust Company Americas Wachovia Bank NA - A Wells Fargo Company Commerzbank AG National Westminister Bank PLC

Insurance Partner Bajaj Allianz

Milestones

1927 - Founded on 14 November, 1927, at Thrissur, Kerala

1975 - Set up the first branch outside the home state of Kerala, at Chennai Mount Road

1977 - Designated as Scheduled Commercial Bank by the Reserve Bank of India (RBI)

1980 - 100-strong branch network

1986 - Total business of Rs. 100 crores

1996 - First public issue. Total business of Rs. 1,000 crores

2000 - Installed the first ATM

2002 - First Rights Issue

2002 - Platinum Jubilee year

2007 - Total business of Rs. 5,000 crores. 80th Anniversary year

2008- Total business of Rs. 7,500 crores. Second Rights Issue

2009- Expanded branch network by 27 branches. Total business of Rs. 10,000 crores

Financial Inclusion Initiatives

Surpassed the RBI's benchmark of priority sector lending of 40% by advancing Rs. 1,148 crores as on 31 March 2009, representing 53.48%.

Surpassed RBI's recommended norm of 18% advances with respect to agricultural credit by lending Rs. 557 crores as on 31 March 2009, representing 21.40%.

Outstanding of Rs. 22.29 crores were under weaker sections, representing 10.31% as against the RBI benchmark of 10% as on 31 March 09.

Outstanding in the area of micro credit totalled Rs. 125 crores as on 31 March 2009.

The number of Savings Bank accounts maintained by Self Help Groups (SHGs) numbered 20,740 while credit facilities availed by SHGs stood at Rs. 35 crores as on 31 March 2009.

Kissan Credit Cards for Rs. 5.06 crores were issued to 1,717 farmers as at the end of March 2009.

Opened 83,046 ‘no-frills’ accounts with outstanding of Rs. 22.22 crores as on 31 March 09, as part of financial inclusion initiatives.

BUSINESS MIX OF DHANLAXMI BANK:-

Graph:-2.1 BUSINESS MIX OF DHANLAXMI BANK

Graph:-2.2 GEOGRAPHICAL BUSINESS MIX OF DHANLAXMI BANK

STRATEGICAL ASPECTS OF DHAN BANK:-

1. MARCH TOWARDS PAN INDIA EXPANSION:-

Dhanalakshmi Bank Ltd. (Dhanbank) has vision to be one of the top 5 Indian private banks in the near future. To attain this goal. Dhanbank has huge expansion plans to tap the potential lying in other places outside Kerala. Dhanbank is expected to open up 66 new branches and 389 new ATMs in the current financial year. Dhanbank will convert its 26 extension counters into full fledge branches in the current year, taking the total no. of branches to 273 in the current year. Dhanbank is expected to have 400 branches & 600 ATMs by the end of FY2010-11.

.

GRAPH:-2.3 NETWORKING ANALYSIS

Dhanbank has got a contract with a German company, AGS, to handle its new ATM opening based on “only opex no capex” model. As per this model, AGS would be responsible for setting up new ATMs at strategic locations and to maintain the ATMs. Cost incurred to Dhanbank would be on number of transactions

Dhanbank has 65% of its branches in state of Kerala. Out of the new branches few would be located in rural areas of Kerala and other would be mainly in Maharashtra & Gujarat & Northern areas, as these areas has the highest portion of deposits and loan off-take, from the total business of Indian banks. Opening of new rural branches would help Dhanbank to tap the huge potential lying in the rural areas.

Dhanbank is expecting to add 900-1000 accounts daily after achieving the 273 branches target. This would help to bring in more CASA deposits.

2. Brand Transformation:

Dhanbank is in process to strengthen its brand in the market. Ogilvy & Mather and Fitch have been appointed as marketing consultants; this would help the bank to reach to the new customers and to strengthen its brand image in the market.

Dhanbank has appointed Ogilvy & Mather as its agency for the banking business to chart out a new brand proposition and communication strategy. O&M, India’s leading communication agency will help the Bank to design and implement a comprehensive go-to market communication approach. The agency will help the Bank in its endeavor to create an entirely new customer experience and to incorporate a young and contemporary look across all customer touch-points.

3. Margins heading north:

Improvement in margins might be seen in the near future on the basis of:

Increase in CASA: Increase in number of branches is expected to bring in 900 to 1000 accounts daily; this would help to grow the CASA deposits. Dhanbank targets to achieve CASA of 30% in medium span of time. As CASA deposits are low cost deposits this would lead to lower cost of deposits.

GRAPH:-2.4- INCREASE IN CASA

Increase in NRI deposits: At present out of the total deposits, the NRI deposits are approx. 6%. Dhanbank has its major presence in Kerala and this area has huge potential of NRI deposits. Dhanbank plans to

tap as much NRI deposits as possible, as these are low cost deposits. A special NRI deposit handling team is setup to tap this category of deposits

. Yield on Investments: In FY2008-09, yield on investments went down

as Dhanbank had major holding in T-bills. Now Dhanbank plans to invest in the government securities, this is expected to increase the yield on investments, as the govt. securities yield better returns than T-bills.

Repricing of deposits to decrease cost of deposits: In the present low interest rate scenario, Dhanbank is to benefit from the repricing of deposits. This will decrease the cost. Repricing could continue benefiting bank up to 1 year.

4. Venture into new business segments:

Fee & Commission based business would be the focus of Dhanbank. This category of income leads to higher ROE & EPS as it does not require capital expenditure and it leads to regular stream of income. Dhanbank has taken various initiatives to increase its other income sources. With the increasing number of branches and deeper reach to retail clients would be a catalyst for the income from Fee & commission based income.

Insurance distribution: Dhanbank has got into a tie up with Bajaj Allianz for its Life Insurance & general insurance product distribution. A special team of 300 marketing officers is set-up for insurance distribution business.

Mutual fund distribution: As part of their wealth management, Dhanbank intends to distribute leading mutual fund schemes. Professional would be joining for MF product distribution and the bank would have a similar strategy as in case of its insurance distribution business.

Other Products: Dhanbank is expected to come up with new products like gold coins, Travelers cheques, and forex services. The bank plans to offer 3in1 account whereby the customer would be provided with the routine banking relationship (Savings A/C) along with Demat A/C and a trading platform.

AMC: Dhanbank is planning to get into Asset Management business. It is planning to enter the asset management business by buying into an existing fund, the investment is likely to be around Rs15-20 Cr. to buy stake in an existing AMC.

Venture Capital: The bank is also looking at setting up a wholly-owned venture capital firm soon. Bank would put in about Rs.2000 Cr. in VC to invest in new start ups. The expected annual return from VC business is approx. 25%.

PRODUCT SUITE:-

Following chart shows the various products and services offered by DHAN LAXMI BANK-

Figure:-2- PRODUCT SUITE OF DHAN BANK

PRODUCTS AND SERVICES OF DHAN BANK:-

1.Personal Banking

Accounts :- Saving Account, Current Account, Term Deposit Loans:-Personal Loans, Home Loans, Auto Loans, Other Loans

Depository Services

Locker Facilities

Forex Services:- Foreign Currency Cash, Cheque Deposits, Foreign Currency DD, Remittances.

2.Corporate Bankng

Cash Management (CMS) Credit :- Industrial Advance, Trade Advance, Import Export, Agriculture

Assistance

Salary Account

Forex & Trade:-Forex Services, Export Services, Import Services

3.NRI Banking

Accounts & Deposits :- NRE Account, NRO Account, Recurring & TD, FCNRY FD, Returning NRIs

Money Transfer :-Draft Drawing, Rupee Drawing, Money Transfer, Overseas Corresp.

NRI Home Loan

Investments :-Portfolio, Repatriation, Non-repatriation, Immovable properties.

4. Micro & Agri Banking

Dhanam Kissan Vahana Kissan Card

Agri gold Loan

Micro Credit - MFI

Micro Credit - SHGs

5. Financial Planning

TABLE:2.1-COMPARISON OF RETAIL PRODUCT FEATURES:-

S.No.

FEATURE ICICI BANK HDFC BANK

AXIS BANK YES BANK

DHANLAXMI

1 AVERAGE MONTHLY BALANCE

VARY AS PER PRODUCT

VARY AS PER PRODUCT

VARY AS PER PRODUCT

VARY AS PER PRODUCT

VARY AS PER PRODUCT

2 DEBIT CARD FACILITY

FREE FREE FREE FREE FREE

3 MOBILE BANKING

CHARGEABLE CHARGEABLE CHARGEABLE CHARGEABLE

FREE

4 RTGS/NEFT ON CHARGE BASIS

ON CHARGE BASIS

ON CHARGE BASIS

ON CHARGE BASIS

BOTH 5-5 FREE PER MONTH

5 COLLECTION OF OUTSTATION CHEQUES

Rs. 50 PER CHEQUE

Rs. 50 PER CHEQUE

Rs. 50 PER CHEQUE

Rs. 50 PER CHEQUE

FREE 5 OUTSTATION CHEQUES PER MONTH

6 DERMAND DRAFT

AS PER RBI NORMS

AS PER RBI NORMS

AS PER RBI NORMS

AS PER RBI NORMS

5 D.D. FREE PER MONTH

7 INTERNET BANKING

FREE FREE FREE FREE FREE

8 SALARY ACCOUNT

YES YES YES YES YES

9 SWEEP IN AND AWEEP OUT FACILITY

IN SOME ACCOUNTS

NO NO NO YES,FREE

10 STOP PAYMENT

CHARGEABLE CHARGEABLE CHARGEABLE CHARGEABLE

FREE TO SOME EXTENT

11 PAY ORDERS CHARGEABLE AS PER NORMS

CHARGEABLE AS PER NORMS

CHARGEABLE AS PER NORMS

CHARGEABLE AS PER NORMS

5-25 P. O .FREE PER MONTH

12 BILL PAYING FACILITY

YES YES YES YES YES

13 INTEREST ON FIXED DEPOSIT FOR

7% 7.5% 7.25% 7% 7.75%

LESS THAN 1.5 YR

14 ANY BRANCH BANKING

YES YES YES YES YES

TABLE:-2.2-COMPARISON OF SERVICES OFEERED

S.No.

FEATURE ICICI BANK HDFC BANK

AXIS BANK YES BANK

DHANLAXMI

1 MUTUAL FUND INVESTMENT

YES,ICICI DYNAMIC,ICICI GROWTH etc.

YES,HDFC TOP 200

YES YES THIRD PARTY PRODUCTS

2 GENERAL INSURANCE

ICICI LOMBARD

YES YES YES THIRD PARTY PRODUCTS

3 LIFE INSURANCE ICICI LIFE INSURANCE

YES YES YES THIRD PARTY PRODUCTS

4 NRI BANKING YES YES YES YES YES5 AGRI BANKING YES YES YES YES ONLY IN SOUTH

INDIA6 HOME LOANS YES YES YES YES ONLY IN SOUTH

INDIA7 CORPORATE

LOANSYES YES YES YES YES

8 OTHER CREDIT SERVICES

YES YES YES YES ONLY IN SOUTH INDIA

9 CUSTOMER CARE DEPARTMENT

YES YES YES YES YES

10 CREDIT CARD FACILITY

YES YES YES YES ONLY IN SOUTH INDIA

11 ONLINE TRADING

YES YES YES YES YES, IN ALLIANCE WITH DESTIMONEY SECURITIES LTD.

12 INTERNET BANKING

YES YES YES YES YES

13 MOBILE BANKING

YES YES YES YES YES

COMPETITOR ANALYSIS AT A GLANCE:-

S.No. FEATURE ICICI BANK HDFC BANK

AXIS BANK

YES BANK

DHANLAXMI

1 BRANCHES 1544 1725 905 150 273

2 ATM 4816 4232 3894 216 453

3 MARKET CAPITALIZATIONIN CRORE Rs.

100,180.00 94,942.22 52996.04 9762.04 1149.27

4 TOTAL ASSETS 286,059.77 139,011.39 156,748.35 31,688.89 6,795.02

5 NET SALES IN CRORE Rs.(RECENT)

25,706.93 16,332.26 11,638.02 2,369.71 534.57

6 NET PROFIT IN CRORE Rs.(RECENT)

4024.98 2244.94 2514.53 477.74 23.30

Table:- 2.3

MARKET SHARE ANALYSIS:-

Following table represents the current market capitalization of different private commercial banks.

NAME OF COMPANY MARKET CAPITALIZATION PERCENTAGEICICI In crore Rs. 100,180.00 31%

HDFC 94,942.22 29%

AXIS 52,996.04 16%

YES 9,72.04 3%

DHANLAXMI 1149.27 .03%

OTHERS 63952.16 20.97%

TOTAL 322981.73 100%

Table:-2.4

Graph:- 2.5-MARKET SHARE ANALYSIS

ICICI is the market player of private commercial bank segment with highest market share of 31%. HDFC and AXIS bank are market followers with 29% & 16% market share respectively. Dhanlaxmi has very low market share in the segment (=0.03%), rest 20% share is from others including INDUSIND BANK, BANK OF RAJASTHAN, KOTAK MAHINDRA, FEDERAL BANK, KARNATAKA BANK

SUMMARY OF FINDINGS AND SUGGESTIONS:-

FINDINGS:-

As per the survey conducted, it is to be noticed a good sector of the people prefer to be customers of nationalized banks. This result can be very well explained by the fact that nationalized banks are acquainted with the Government and that ups and downs in business will not affect the existence of the bank. Also the RBI too has good control over the working of these banks and there for the customers feel a sense of security in investing in these banks. However it is also seen that a good percentage of people also opt for private banks such as ICICI, HDFC, AXIS bearing in mind the amount of experience they posses in the field of banking.

Survey results show that customers from private sector banks are more satisfied as compared to customers from public sector banks. it was found that there is a direct relationship between brand image/product differentiation and satisfaction of the customer.

Customer demographic plays important role while preparing penetration

strategies.

Dhanlaxmi has the retail products with unique features which others don’t have, but some of the services it is selling in alliance with third parties.

Market share of Dhan Bank is not so high as compared to ICICI,HDFC,AXIS and YES BANK.

SUGGESTIONS:-

The bank should introduce new delivery channels via opening more branches and ATMs in many cities to improve network efficiency..

Effective advertisement campaign can help the bank to increase business in many cities. TV commercials, Hoardings posters can be some of the mediums to increase the awareness of Bank.

Bank should launch the whole product line in Jaipur to emerge its position in competition.

Bank should target 5 km area around the branch office because survey depicts that most of the customers selected their bank on the basis of proximity.

Bank should constantly innovate their products as per customer requirements.

Dhanlaxmi Bank should maintain the consistency in service quality for total customer satisfaction.

BIBLIOGRAPHY:-

WEBSITES:-

www.dhanbank.com www.moneycontroll.com www.finance.india.mart.com www.banknetindia.com www.rbi.org www.moneycontrol.com www.google.com

BOOKS, JOURNALS:-

COMPANY BROCHURES ANNUAL REPORTES OF DHAN BANK BUSINESS ECONOMICS JOURNAL KOTHARI, C. R. ,RESEARCH METHODOLOGY CHAUDHARY,C.M., RESEARCH METHODOLOGY

Selection Process at Dhanlaxmi Bank

To improve the selection process for recruitment at all levels in

Dhanlaxmi Bank, they have carried out an in-depth study of the competencies

required to succeed in Dhanlaxmi Bank. As per Dhanlaxmi research, the

competencies which indicated success at the entry level in Dhanlaxmi Bank

are:

Drive for results

Process Orientation

Interpersonal Effectiveness

Analytical Thinking

Innovation & Team Effectiveness

Recruitment and Selection Process in Dhanlaxmi Bank

Both recruitment and selection are the two phases of the employment

process. The differences between the two are:

1. Recruitment is the process of searching the candidates for employment and

stimulating them to apply for jobs in the organisation WHEREAS selection

involves the series of steps by which the candidates are screened for choosing

the most suitable persons for vacant posts.

2. The basic purpose of recruitments is to create a talent pool of candidates to

enable the selection of best candidates for the organisation, by attracting more

and more employees to apply in the organisation WHEREAS the basic purpose

of selection process is to choose the right candidate to fill the various positions

in the organisation.

3. Recruitment is a positive process i.e. encouraging more and more

employees to apply WHEREAS selection is a negative process as it involves

rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources

WHEREAS selection is concerned with selecting the most suitable candidate

through various interviews and tests.

5. There is no contract of recruitment established in recruitment WHEREAS

selection results in a contract of service between the employer and the

selected employee.

Shareholding pattern - Dhanlaxmi Bank Ltd.

Holder's Name No of Shares % Share Holding

OtherCompanies 15032842 17.66%

GeneralPublic 33208889 39.01%

ForeignInstitutions 29757359 34.95%

ForeignNRI 5136673 6.03%

NBanksMutualFunds 1191510 1.40%

FinancialInstitutions 594834 0.70%

Others 214212 0.25%

INDIAN FINANCIAL SYSTEM

The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and household sector. While performing their activities these units will be placed in a surplus/deficit/balanced budgetary situations.

There are areas or people with surplus funds and there are those with a deficit. A financial system or financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus to the areas of deficit. A Financial System is a composition of various institutions, markets, regulations and laws, practices, money manager, analysts, transactions and claims and liabilities.

Financial System;

The word "system", in the term "financial system", implies a set of complex and closely connected or interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy. The financial system is concerned about money, credit and finance-the three terms are intimately related yet are somewhat different from each other. Indian financial system consists of financial market, financial instruments and financial intermediation. These are briefly discussed below;

FINANCIAL MARKETS

A Financial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend.

Money Market- The money market ifs a wholesale debt market for low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions.

Capital Market - The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year.

Forex Market - The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe.

Credit Market- Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate and individuals.

Constituents of a Financial System

FINANCIAL INTERMEDIATION

Having designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor in order to garner the requisite amount. When the borrower of funds approaches the financial market to raise funds, mere issue of securities will not suffice. Adequate information of the issue, issuer and the security should be passed on to take place. There should be a proper channel within the financial system to ensure such transfer. To serve this purpose, Financial intermediaries came into existence. Financial intermediation in the organized sector is conducted by a widerange of institutions functioning under the overall surveillance of the Reserve Bank of India. In the initial stages, the role of

the intermediary was mostly related to ensure transfer of funds from the lender to the borrower.  This service was offered by banks, FIs, brokers, and dealers.  However, as the financial system widened along with the developments taking place in the financial markets, the scope of its operations also widened. Some of the important intermediaries operating ink the financial markets include; investment bankers, underwriters, stock exchanges, registrars, depositories, custodians, portfolio managers, mutual funds, financial advertisers financial consultants, primary dealers, satellite dealers, self regulatory organizations, etc. Though the markets are different, there may be a few intermediaries offering their services in move than one market e.g. underwriter.  However, the services offered by them vary from one market to another.

Intermediary Market Role

Stock Exchange Capital Market Secondary Market to securities

Investment Bankers Capital Market, Credit Market

Corporate advisory services, Issue of securities

Underwriters Capital Market, Money Market

Subscribe to unsubscribed portion of securities

Registrars, Depositories, Custodians Capital Market

Issue securities to the investors on behalf of the company and handle share transfer activity

Primary Dealers Satellite Dealers Money Market Market making in

government securities

Forex Dealers Forex Market Ensure exchange ink currencies

Financial Institutions

Industrial Development Bank of India (IDBI)

Industrial Finance Corporation of India (IFCI)

Export - Import Bank of India (Exim Bank)

Industrial Reconstruction Bank of India (IRBI) now (Industrial Investment

Bank of India)

National Bank for Agriculture and Rural Development (NABARD)

Small Industries Development Bank of India (SIDBI)

National Housing Bank (NHB)

Unit Trust of India (UTI)

Life Insurance Corporation of India (LIC)

General Insurance Corporation of India (GIC)

Risk Capital and Technology Finance Corporation Ltd. (RCTC)

Technology Development and Information Company of India Ltd.(TDICI)

Tourism Finance Corporation of India Ltd. (TFCI)

Shipping Credit and Investment Company of India Ltd. (SCICI)

Discount and Finance House of India Ltd. (DFHI)

Management & Organization

CONCLUSION

The banking industry in India is facing the challenges on deposit mobilization

front, because of the severe competition from various financial institutions and

public corporations.

Dhanlaxmi Bank today services a growing customer base of more than 5

million customer accounts through a multi-channel access network. They

believe in customer satisfaction in every possible way. They are focused on

quality of products and services rather than quantity of products and services.

This project has given me an insight as to how Bank should market their

products in the right way by overcoming all the difficulties like a suitable

location, advertising etc.

PREFACE

The student of B.B.A. 5th Sem. (1st batch) has to undergo project Report as a part of their academic Course. The “Employment Opportunity for Management Student in the Banking Sector” is a part of this project. The main purpose of undergoing such a searching is to know the training & placement opportunity in Dhanlaxmi bank.

The searching was conduct of the Dhan laxmi Bank website. This report presents the introduction of management profile of Dhan laxmi Bank along with limitation, suggestion and conclusion. The field searching was conduct with help of personal information of Dhan laxmi Bank through the Internet.

DECLARATION BY THE CANDIDATEDECLARATION BY THE CANDIDATE

Date………….

I declare that the Project report Entitled “Employment

Opportunity for Management Student in the

Banking Sector” is my own work conducted under the

Supervision of MRS . SHIKHA URMIL KHAN Lecturer,

Department of Business Management, Govt. Autonomous Girls PG

College of Excellence, Sagar.

To the best of my knowledge the report does not my work,

which has been submitted for the award of any degree, anywhere.

Signature of Candidate

URMILA PANDEYBBA 5TH Semester

ACKNOWLEDGEMENT

I would like to pay my sincere thank to DR. ANAND TIWARI

Head of Department, Govt. Autonomous Girls PG College of

Excellence, Sagar for providing me with the opportunity of doing

the project Report. This report is based on “Employment Opportunity for Management Student in the Banking Sector” which I will an asset through out my life.

At last I would like to thank all staff members of my

department, parents and friends for their kind support and

suggestions.

URMILA PANDEYBBA 5TH Semester

C E R T I F I C A T E

DATE…………DATE…………

The period report title “Employment Opportunity for

Management Student in the Banking Sector”, prepared by

URMILA PANDEY under the guidance and supervision of MRS .

SHIKHA URMIL KHAN Lecturer, Department of Business

Management, Govt. Autonomous Girls PG College of Excellence,

Sagar for the partial fulfillment of the degree of Bachelor of

Business Administration is satisfactory.

Signature of Supervisor Signature of H.O.D.

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Signature of Examiner