ABOUT HDFC BANK

The Housing Development Finance Corporation (HDFC) was amongst the

first to receive an 'in-principle' approval from the Reserve Bank of India

(RBI) to set up a bank in the private sector, as part of RBI's liberalization of

the Indian Banking industry in 1994. The Bank was incorporated in August

1994 in the name of 'HDFC Bank Limited' with its registered office in

Mumbai, India. HDFC Bank commenced operations as a Scheduled

Commercial Bank in January 1995

HDFC Bank, the pioneer of the retail-banking movement in India, is one of

the fastest growing and most profitable banks in India with a strong urban

presence. The bank, with a market share of 2.5% has a wide reach across

the country with a branch network of 425 branches and 950 ATMs. Strong

understanding of the retail sphere (46% of total advances in 9mFY05) and

technology initiatives has made the bank the second largest private sector

bank in the country. The bank has largely outpaced the sector growth over

the last few years, but of late the growth momentum has been subdued due

to competitive reasons.

HDFC Bank is headquartered in Mumbai. The Bank at present has an

enviable network of over 250 branches spread over 135 cities across the

country. All branches are linked to each other through an online real- time

basis. Customers in 80 locations are also serviced through Phone Banking.

The Bank's expansion plans take into account the need to have a presence

in all major industrial and commercial centres where its corporate

customers are located as well as the need to build a strong retail customer

base for both deposits and loan products. Being a clearing/settlement bank

to various leading stock exchanges, the Bank has branches in the centres

where the NSE/BSE have a strong and active member base.

The Bank also has a chain of over 800 networked ATMs across these cities.

Moreover, HDFC Bank's ATM network can be accessed by all domestic and

international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and

American Express credit/charge cardholders.

HDFC Bank operates in a highly automated environment in terms of

information technology and communication systems. All the bank's

branches have connectivity which enables the bank to offer speedy funds

transfer facilities to its customers. Multi-branch access is also provided to

retail customers through the branch network and Automated Teller

Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the

best technology available internationally to build the infrastructure required

for a world-class bank. In terms of software, the Corporate Banking

business is supported by Flexcube, while the Retail Banking business by

Finware, both from i-flex Solutions Ltd. The systems are open, scalable and

web-enabled.

The Bank has prioritized its engagement in technology and the internet as

one of its key goals and has already made significant progress in web-

enabling its core businesses. In each of its businesses, the Bank has

succeeded in leveraging its market position, expertise and technology to

create a competitive advantage and build market share.

The Bank has received recognition both nationally and internationally for

'The Best Bank' on various parameters in publications like Euro money and

Finance Asia.

The Bank's IT department has a total staff strength of 120 (approx.), with a

mix of functional and technical specialists. The project managers for new IT

initiatives are designated both from this group and from businesses. Almost

all the project development and application maintenance activities are

outsourced to IT vendors.

Business Objectives

The primary objective of HDFC is to enhance residential housing stock in

the country through the provision of housing finance in a systematic and

professional manner, and to promote home ownership. Another objective is

to increase the flow of resources to the housing sector by integrating the

housing finance sector with the overall domestic financial markets.

Organizational Goals

HDFC’s main goals are as follows:

Ø Develop close relationships with individual households,

Ø Maintain its position as the premier housing finance institution in

the country,

Ø Transform ideas into viable and creative solutions,

Ø Provide consistently high returns to shareholders, and

Ø To grow through diversification by leveraging off the existing client

base.

. PRODUCTS OF HDFC BANK

1. Savings Account

It is a unique savings account in India, which helps you withdraw or deposit

cash through wide network of branches and ATMs across India.

e-Age Advantages

HDFC Bank uses state-of-the-art technology to give you an array of value-

added services.

ATM facilityInter-city and inter-branch bankingFund Transfers & Demand Draftssweep-In AccountSuper Saver AccountRequirement for new account 2. Current accountThe AdvantagesYou can access your account anytime and anywhere, to withdraw cash,

deposit cash/cheques, make balance inquiries or ask for mini-statements, or

make a cheque book request.

Useful inter-city banking Safe & convenient intra-city banking3. Sweep-In AccountWith the Sweep-In Facility you can automatically transfer funds from your

Fixed Deposit to your Current Account whenever needed

4. Demat Account

Mutilated certificates, lost certificates, postal delays and counterfeit shares

are a thing of the past. Enter a world of safe, secure and convenient buying,

selling and transacting without suffering endless paperwork and delays.

Convert your securities to electronic format with the HDFC Bank Demat

Account. It's as easy as opening a bank account.

HDFC Bank provides online access to your Demat Account, so that you can

check your holding using the Net Banking facility.

5. Private Banking

Private Banking is a comprehensive and exclusive service, offered by HDFC

Bank, to select high net worth individuals and institutions. The service is

provided by an advisory team specialized in financial and investment

services. These experienced professionals put together unbiased and

objective guidance based on strong research and in-depth analysis of

financial instruments taking into account your financial goals and

requirements.

An experienced Relationship Manager serves as your one-point contact, for

your complete banking and investment needs and requirements.

6. Car loans

Car Loan - New Car Loans

HDFC Bank's Car Loans Scheme is the most convenient way to get a loan

for your new dream car.

7. Personal Loans

A wedding in the family. Maybe your house needs renovation. Or your

daughter has obtained admission to a medical college. These are moments

in life when you may need a helping hand. That's when you can rely on

HDFC Bank Personal Loan. We offer all kind of personal loan meeting your

personal requirements in India.

The procedures are simple, documentation is minimal and approval is quick.

8. Home loans

Buying a property requires a complete knowledge of real estate and in

today's complex financial market it is difficult to choose the appropriate

home loan company. HDFC Bank brings home loans at your doorstep. With

over 25 years of experience of our parent company HDFC Ltd. and their

dedicated team of experts offering a complete package to meet your

housing finance needs, and ever eager to guide you with a basket of value

added products and services.

9. Credit cards

To help you keep up with the changing times, HDFC Bank offers the finest

payment solutions, from Debit Cards to Credit Cards, all internationally

valid.

Specifically, the HDFC Bank Credit Cards are available as two variants, the

HDFC Bank International Silver Card and the HDFC Bank International

Gold Card

10. Net banking

Online Banking / Internet Banking

Now up-to-the second access anytime anywhere!

While many banks offer online banking or internet banking facilities, most

of them do not offer up-to-the-second account information. Which means

that if a cheque issued by you has been debited from your account in the

morning, your account status will not reflect this when you log-in to your

account in the afternoon? That's because, the account is updated at the end

of each day and not instantaneously.

11. NRI SERVICES

NRI Banking Services

One Indian bank is keeping pace with global banking and staying in tune

with your changing needs - HDFC Bank.

DEPARTMENTWISE STUDY

1.FINANCE DEPARTMENT

1.1. INTRODUCTION OF FINANCE DEPARTMENT

In this modern era it is very easy to know how much important the finance

is in the business. As current position of the market is totally different from

ancient where it was very easy to get the finance. But now a days it is not

so, it is very difficult task to raise funds from market. As today people are

facing lot of problem and have less confidence on the market so it is difficult

to raise fund without proper planning.

For the bank as it is a Financial Institution we can consider finance as

lifeblood of this business. The company should manage to get sufficient

finance. The company should use to keep proper planning for the finance of

its own and also of the large no. of depositors who are there with the bank.

We can define financial management as a task of acquisition and utilization

of funds needed in the business in a manner so that organizations goal can

be achieved. In HDFC Bank, its chief Financial Officer and Treasurer

manage the finance. Due to proper policies and separate management the

company can have proper operation of finance.

ORGANIZATION OF FINANCIAL ACTIVITIES OF BANK

For the bank finance itself is the product now it is not an easy task to

manage this finance. As bank has to keep watch on the deposits of its

millions of customers and also it has to manage its own large financial base.

As in recent it is popular “No finance no business”, for the bank “Finance

itself is business”. There are different types of organizational structure

such as group organization, line organization, line and staff organization.

HDFC Bank has line of authority and line of authority is vertical i.e.

authority passes from top to bottom and responsibility passes from bottom

to top level management.

As HDFC Bank is very big company and it has large cliental base so it is

very difficult and complicated to manage its finance in proper way. There

we need of concrete and proper policies to have proper management of it.

Because of big size of the bank one cannot manage all the accounts of it

alone. So, company has to appoint many different persons so that there is

proper maintenance of the funds of different persons is possible.

1.1 Human Resource Department for Over All HDFC

People had played a critical role in HDFC’s success. Their skills and

commitment had proved to be one of HDFC’s most important assets. Yet,

in its desire to develop human resources, HDFC consciously discouraged

'stars'. As a matter of policy, the company did not recruit fresh MBAs

from the top-rated schools-the favorite hunting ground for most financial

services companies in India. By doing so, HDFC avoided the baggage

that typically came along-ego, jealousies, and an aggressively

competitive environment. HDFC hired people from the next-tier

institutions who tended to have more subdued personalities and were

able to work jointly with others. The management had a firm belief

that the efficiencies and synergy of harmonious team-based

operations far outweighed the cost of ignoring the best intellectuals.

HDFC invested in augmenting the knowledge and skills of its frontline staff

with a focus on customers. A program me on ‘Creating Value for HDFC

Customers’ was designed and offered to all frontline staff.

The HDFC School, an initiative that began in 2001, provided insights to

frontline staff, into the operations of HDFC, its products and processes and

was facilitated by senior line managers. The HDFC Intranet supported

self-paced learning for newcomers as well as existing employees. The

Intranet contained up to date information on products, processes, policies

and procedures and the general business environment. Line managers

were trained in the art of facilitation and the latest principles and

methods of experiential learning. Other training programmes included

managerial skills, effective recovery techniques, sharing of best

practices and self-motivation for the recoveries staff and team building

programmes for branches/departments.

2.4. Responsibilities of Human Resource Department.

Ø HRD maintain daily attendance record through branch manager via E-

mail.

Ø Take decisions for approval regarding leave notes.

Ø He takes the decision related to the recruitment, selection and training

of the candidates. He talks to the consultant related to the recruitment of

the qualified candidates. He also does screening of the candidates,

shortlist the candidate and takes the first round of the interview.

Ø He maintains the database of the candidates to come for an interview.

He also maintains personal file of each employee. He also completes the

joining formalities of each new employee.

Ø They are taking surprising visit in every branch and collect information

about employees.

Ø He is responsible for the monthly salary of the employees as per their

attendants and passing to the Branch Manager.

2.MARKETING DEPARTMENT

3.1. INTRODUCTION OF MARKETING ACTIVITY BY

BANK

As we know today in this competitive era marketing plays an important role

for any business to be with the market. As each and every small business

should know skill of marketing as it is one of the most important part of

management. So for every company it is important to have separate

marketing department. We can define marketing as an activity of satisfying

human need by process of exchanging goods and services from producer to

consumers. The success of organization depends upon the marketing

activity.

Marketing involves activities related to the products. The activity which are

done to satisfy customer need in better way, it includes activities such

advertising, publicity, marketing research, distribution of products and

services, sales promotion efforts etc. in HDFC Bank marketing of its product

is done by the different officers who are handling that products. Here

different services are allotted to different persons and they do marketing of

those products as per their requirement.

3.2 . ORGANIZATION OF MARKETING ACTIVITIES

Marketing department consist of different persons with their unique

position. Each and every company has its own marketing department.

Marketing organization is consisting of people, activity, authority,

responsibility and relationship for the purpose achieving marketing

objectives.

HDFC Bank has several branch. Here HDFC Bank has its own marketing

department at its main office but in branch the various officers do the

marketing activity, which are handling different products in the branch. It

is mixture of line and staff organization. The main authority is lying with

branch manager only. Various officers have to take his permission to carry

out the various activities in these regards.

Simple Organization Chart of Marketing Activity.

We can see from the chart that in each department of the branch there is

one senior officer. The departments are allotted as per different products

types. So each senior officer had appointed one Customer Advisory Team

officer who handles different types of salesmen. Other activities to support

different product promotion also handled by them.

ADVERTISING OUTLOOK IN BANKING SECTOR:

No longer a recluse in the world of advertising, Indian financial services are

out there in full force to grab customer attention offering rosy policies and

even rosier dreams. On the other hand, what the agency 'wallas' have to

keep in mind is to refrain from making any tall claims in the ads they churn

out for these financial bodies... which in turn leaves them with a very

limited milieu to work on. And what with all the clutter, one can hardly

differentiate one ad from the other these days as far as this particular

sector is concerned. So what is the solution? As always, the clichéd word

"different" springs to mind.

And different it is... The recently launched ad campaigns across the media

for HDFC Bank has sure caught on with people. When one thinks about the

banks which advertise in the media, the first (and maybe only) name that

comes to mind is that of ICICI and its larger than life brand ambassador -

Amitabh Bachchan. Well, nothing as flamboyant as that in the case of

HDFC; though whatever has been done has been noticed, to say the least!

The 'Don't Wait' hoardings of HDFC Bank seen all over the city

With a 360 degrees approach in advertising which covers television, radio,

print and outdoor; HDFC's ads with the tag line "We understand your

world;" conceptualized by Euro RSCG are surely making their presence

felt. The message is clear and the consumer connect is ubiquitous.

ADVERTISING SRATEGY

With so many financial services in the fray and all of whom advertise

extensively, HDFC makes a deliberate effort to differentiate itself from the

rest. The bank's key strength lies in their ability to consistently deliver a

superior banking product. Not one to swagger unlike some banks which

announce products first and then figure out how to deliver them, HDFC

Bank believes in investing money in ensuring that the product is perfect.

That is one of the reasons behind its success and profitability.

HDFC Bank ad campaign:

How Different from Competitors is the main goal of the company while

making the ad.

The campaign is-'We understand your world' (Posted on 21 February 2004)

TARGET CUSTOMER:

The youth who is eager to settle down in life and the target customers are

in the age group of 24 to 30 years segment.

Media and Media strategy:

HDFC has adopted 360 degrees approach in advertising which covers

television, radio, print and outdoor. Also company has adopted wide

coverage strategy with maximum rich to the prospect customers.

While earlier, most financial services ads revolve around the aged; in the

various versions of the HDFC TVC (television commercial) there is a clear

indication of targeting the youth who is eager to settle down in life. Thus

indicating a clear marketing thrust by HDFC towards the youth - the 24 to

30 years segment. The reason behind it is that, "Banking is a habit that

forms early in life. To that extent all banks focus on the youth and young

professionals. This is not a new thrust from HDFC Bank, but the trend has

been there for a while now."

(Source: www.exchange4media.com)

IMPORTANCE OF CUSTOMER SERVICE IN ICICI BANK

Bank is a commercial institution of outfit marketing financial products.Service performances, production and consumption of services occurs simultaneously. Therefore, the frontline people and their interaction with customers, thus everyday postures, gestures, actions, reactions, emotions, activities and impressions contribute significantly in projecting a particular image of the bank distinguishing it from the rest of the field. Further customer service has a tremendous retention-value. If they can not retain a customer, all their efforts in terms of time and money in creating and winning a customer would be a sheer waste. Besides, it is found that retaining customer is often cheaper than finding a new customer. In addition to that satisfied customers recommended the business to others. Thus a customer is vietheyd as a long-term relationship rather than a party to a stray single transaction. The initial transaction is taken as the starting point and opportunity to establish a relationship through providing total customer satisfaction, which in turn will ensure further business, from him. This is what they term as relationship banking.Qualitative customer service and total satisfaction forms the edifice of“Relationship Banking”.

7 P’s OF MARKETING OF ICICI BANK

Marketing of services by ICICI bank

1. PRODUCT MIXA)DEPOSITS:

Savings Account:

ICICI Bank offers a potheyr packed Savings Account with a host of convenient features and banking channels to transact through, without the stress of waiting in queues.

Senior Citizen Services:

ICICI understands that a Savings Account needs to do more af-ter one reaches the age of seniority. They have an ideal Savings Bank Service for those who are 60 years and above

Fixed Deposits:

Safety, Flexibility, Liquidity and Returns. A combination of un-beatable features of the Fixed Deposit from ICICI Bank.

Recurring Deposits:

Through ICICI Bank Recurring Deposit one can invest small amounts of money every month that ends up with a large saving on maturity. So one can enjoy twin advantages- affordability and higher earnings.

B) INVESTMENTS:

ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporates Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2004

C) ANYWHERE BANKING:

ICICI Bank is the second largest bank in the country. It services a customer base of more than 5 million customer accounts through a multi-channel access network. This includes more than 500 branches and extension counters, over 1800 ATMs, Call Cen-tre and Internet Banking. Thus, one can access the various ser-vices ICICI Bank has to offer at anytime, anywhere and from any-place

D) LOANS:

ICICI Bank offers wide variety of Loans Products to suit the cus-tomer’s requirements. Coupled with convenience of networked branches/ ATMs and facility of E-channels like Internet and Mo-bile Banking, ICICI Bank brings banking at their doorstep

Home Loans

Some of the key benefits for HOME LOAN are:

Guidance throughout the process Home loan amounts suited to ytheir needs Home Loan tenure up to 20 years Simplified Documentation Doorstep Service Sanction approval without having selected a property. Free Personal Accident Insurance Insurance options for ytheir home loan at attractive pre-

mium

Personal Loans

Key Benefits of ICICI Bank Personal Loan:

Loan up to 15 lacks No security/guarantor required Faster Processing Minimum Documentation Attractive Interest Rates

12-60 Months repayment options

Car Loans

ICICI offer loans up to 100% of `on-road' cost on select models, and up to 95% of the ex-showroom price on others. The process for getting a loan involves only a few simple steps and they will tailor-make the loan to suit ytheir needs.

1. Loan on Phone for Customers: If you are an ICICI Bank cus-tomer, Go for a pre-approved car loan. Call Customer Care num-bers or sms "carloan " to567676.

2. Loan on the Strength of Ytheir Income: Submit income proofs as required and avail of finance up to 100% of the `on-road' cost of the car!*

3. Loan in the absence of Income Proof: ICICI offer car loan for customers without income proof on producing the bank state-ment, loan repayment track record, etc.

4. Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers new car loans with both fixed and floating interest rate options. The customer can opt for fixed interest rate or float-ing interest rate for taking a car loan from ICICI Bank according to his/her discretion.

Farm Equipment Loans

Preferred financier for almost all leading tractor manufacturers in the country. Financing farm equipments in over 381 locations spread across the country. Fast processing of files with easy doc-umentation. Flexible repayment options in tandem with the farmer's seasonal liquidity. Monthly, Quarterly and Half-yearly repayment patterns to choose from. Comfortable repayment tenures from 1 year to 6 years.

Loan against Property

Loan against Property is the perfect way to unlock the hidden value of ytheir property. With this loan, you can fully benefit from

life's little surprises you may have earlier passed over due to lack of funds. Live ytheir dreams with a This multi-purpose loan puts funds at ytheir disposal to use as you wish. This loan is available at a reasonable rate and can be repaid comfortably over as many as 15 years. The ICICI Bank's Loan against Property can be used for any purpose.

Expand ytheir business - No longer do you have to stifle ytheir creative ideas. With funds at ytheir disposal, you can now expand ytheir business without hesitation. ICICI helps you to meet all ytheir expenses with ease--when you take an ICICI Bank Loan against Property.

Send ytheir child for higher studies - Education is the cornerstone of ytheir family's progress. With a Loan against Property, you can empotheyr ytheir son or daughter to grow into an outstanding achiever.

Get ytheir child married - Put aside all ytheir monetary worries and celebrate ytheir child’s theydding with pomp and splendor. Meet all ytheir expenses with ease—when you take an ICICI Bank Loan Against Property.

Farmer Finance

Providing finance to the farmer for his various needs of inputs and consumption in the form of crop loans, dairy loans and loans for allied activities to agriculture like irrigation etc. for input needs and auto loans (two, three and ftheir wheeler) and per-sonal loans for consumption needs. The customer can also avail of working capital term loan for setting up a poultry project. Flexible repayment pattern and tenure to align to the cash flow of the customers.

Rural Education Loan

ICICI Bank Rural Educational Institution Finance (REI) caters to the need of privately runs Educational Institution based out of Rural, Semi Urban and outside city limit locations. The product is

designed to cater to the specific needs of the education institu-tions. New products and features in the existing product are in-troduced based on regular customer feedback.

E) CARDS:

ICICI Bank offers a variety of cards to suit different transactional needs of customers. This includes Credit Cards, Debit Cards and Prepaid cards. These cards offer convenience during financial transactions like cash withdrawal, shopping and travel. These cards are widely accepted both in India and abroad.

Credit cards –

ICICI Bank Credit Cards offer a smart way to shop, along with flexibility and convenience in managing ytheir finances. Choose from a wide range of credit cards designed to cater to ytheir spe-cific lifestyle requirements.

Commercial cards

ICICI Bank Commercial Cards have been designed as payment solutions for large & mid-sized organizations. A widely accepted concept internationally, Commercial Cards help to better stream-line payment processes & thus increase efficiencies.

Business Card

The ICICI Bank Business Card is aimed at SMEs as an enabler for their business. The Business card is a smart alternative to cheques, cash, and personal credit cards. With its purchasing convenience, cost savings, available credit, and detailed report-ing facilities, the ICICI Bank Business Credit Card offers what ytheir business needs to stay on top.

Travel Card

Presenting ICICI Bank Travel Card. The hassle free way to Travel the world. Traveling with US Dollar, Euro, Pound Sterling

or Swiss Francs; Looking for security and convenience; take ICICI Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card.

Debit Cards

The ICICI Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The ICICI Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 mil-lion merchants worldwide.

F) DEMAT SERVICES:

ICICI Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavor to offer best of the class services to customers they offer the fol-lowing features:

E-Instructions:

Transfer securities 24 htheirs a day, 7 days a theyek through In-ternet & Interactive Voice Response (IVR) at a lotheyr cost.

Digitally Signed Statement: Corporate Benefit Tracking: Mobile Request: Mobile Alerts:

G) MOBILE BANKING:

With ICICI Bank, banking is no longer what it used to be. ICICI Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat customers. ICICI Bank Mobile Banking enables you to bank while being on the move.

ICICI Bank Mobile Banking can be divided into two categories of facilities: Alert facility: The ICICI Bank Mobile Banking Alert fa-cility informs you promptly of the significant transactions in ytheir accounts. It keeps you updated wherever you go.

H) NRI SERVICES:

ONLINE MONEY TRANSFER facility available to NRIs worldwide through www.money2India.com at the click of a button!

Benefits:

FREE Money transfers into accounts with over 30 banks in India

Demand Drafts issued and payable at over 1250 locations in India

ONLINE Tracking of the status of ytheir funds SUPERIOR Exchange rates OFFLINE MONEY TRANSFER facility is also available

across geographies through

2. PRICING MIX:

The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in moti-vating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing pol-icy of a bank is considered important for raising the number of customers’ vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position. The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation bettheyen two. It is essential that both the buyers as theyll as the sellers have feeling of winning.

Pricing Bank Products Starts With Three Basic Questions.

1. What rate does the bank need to meet its financial objectives?

The answer is, it depends. �

Some considerations for loan and deposit pricing are:

Related income taxes Earning assets to total assets Equity-to-asset ratio Pricing for the activities and risks associated with the product Asset and liability mix

Another element to consider in the pricing of earning assets is the risk of loss. Most notably, this is relevant in loan pricing. A  Many banks assign a risk weighting to individual loans over a certain size or based on loan type and assign a credit risk charge based on those ratings.

Customer relationships are difficult to assign a value to in the pricing process. A  Customers will generally press for some price concessions in consideration of other relationships they have with the bank.

Asset and liability mix also impacts pricing results. Generally speaking, banks operating with higher loan-to-asset ratios are able to afford to pay more for deposits. A  Likewise, banks can afford to be more competitive on certain deposit products if they have fewer maturities in a particular timeframe or less total outstanding balances in a product line.

2. What is the market rate for the core product?

Customers have more distribution channels available to them today than at any other point in history. A  In the past 10 years, the number of bank locations has increased 20%. Of course, there are the mortgage bankers, the Internet, and a host of other financial service providers competing for your customer’s loan and deposit business.

The point is, the competitive marketplace always ensures that if a financial institution is charging too much for loans or paying too little for deposits, its share of the market will likely dwindle as existing and prospective customers find alternative providers. A  You can do all the math you want to determine required pricing points, but if your pricing is uncompetitive, your market share will shrink.

3. What would the bank have to do to sales and operations to make its rates the most competitive in its market?

Pricing is a key issue for the associates who sell bank products to your customers. A  The fact is, lenders want the lowest rates, and people dealing with depositors want to pay the highest rates. A  You need the right balance of fee income, strategies to reduce operating costs, and a healthy asset and liability mix to change your required pricing.

3. PLACE MIX:

This component of marketing mix is related to the offering of ser-vices. The services are sold through the branches. The 2 impor-tant decision making areas are:

Making available the promised services to the ultimate users

Selecting a suitable place for bank branches.

The number of branches OF ICICI: 1900 in India and 33 in Mum-bai.

4. PROMOTION MIX:

The different components of promotion help bank professionals in promotion the banking business.

Advertising: Television, radio, movies, theatres. ICICI uses this component of the promotion mix with the motto of informing, sensing and persuading the customers. The advertising profes-sionals bear the responsibility of making the appeals, slogans, messages more creative.

Print media: Hoardings, newspaper, magazines. There are a number of devices to advertise, such as broadcast media, tele-cast media and the print media

Publicity: road shows, campus visits, sandwich man, Sponsor-ship

Sales promotion: Gifts, discount and commission, incentives, etc. ICICI also thinks in favtheir of promotional incentives both to the bankers as theyll as the customers. The banking organiza-tions make provisions for incentives

Personal selling: Cross-sale (selling at competitors place), per-sonalized Service. The personal selling is found instrumental in promoting the banking business. It is just a process of communi-cation in which an individual exercise his/her personal potentials, tact, skill and ability to influence the impulse buying of the cus-tomers. Since ICICI gets immediate feedback, the personal sell-ing activities energies the process of communication very effec-tively.

Telemarketing: ICICI one sterile Call center

MARKETING MIX IN BANKING INDUSTRIES

TYPES OF COMPLAINTS BEFORE BANKING OMBUDSMAN

8. What sort of disputes can the Banking Ombudsman con-sider?

The Banking Ombudsman can receive and consider any com-plaint relating to the following deficiency in banking services:

Place PeoplePrice

Product

Promotion

non-payment or inordinate delay in the payment or collec-tion of cheques, drafts, bills, etc.;

non-acceptance, without sufficient cause, of small denomi-nation notes tendered for any purpose, and for charging of commission for this service;

non-acceptance, without sufficient cause, of coins tendered and for charging of commission for this service;

non-payment or delay in payment of inward remittances ; failure to issue or delay in issue, of drafts, pay orders or

bankers’ cheques; non-adherence to prescribed working hours; failure to provide or delay in providing a banking facility

(other than loans and advances) promised in writing by a bank or its direct selling agents;

delays, non-credit of proceeds to parties' accounts, non-pay-ment of deposit or non-observance of the Reserve Bank di-rectives, if any, applicable to rate of interest on deposits in any savings, current or other account maintained with a bank ;

delays in receipt of export proceeds, handling of export bills, collection of bills etc., for exporters provided the said complaints pertain to the bank's operations in India;

refusal to open deposit accounts without any valid reason for refusal;

levying of charges without adequate prior notice to the cus-tomer;

non-adherence by the bank or its subsidiaries to the instruc-tions of Reserve Bank on ATM/debit card operations or credit card operations;

non-disbursement or delay in disbursement of pension to the extent the grievance can be attributed to the action on the part of the bank concerned, (but not with regard to its employees);

refusal to accept or delay in accepting payment towards taxes, as required by Reserve Bank/Government;

refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of Government securities;

forced closure of deposit accounts without due notice or without sufficient reason;

refusal to close or delay in closing the accounts; non-adherence to the fair practices code as adopted by the

bank; and any other matter relating to the violation of the directives

issued by the Reserve Bank in relation to banking or other services.

deficiency in Internet banking services non-adherence to the provisions of Fair Practices Code for

lenders as adopted by the banks or Code of Banks Commit-ment to Customers

non-observance of Regulatory guidelines on engagement of recovery agents by the banks

  What happens when a complaint is received by the

Banking Ombudsman? The Banking Ombudsman endeavours to promote, through

conciliation or mediation, a settlement of the complaint by agreement between the complaint and the bank named in the complaint.

19. What happens if the bank makes an offer to settle? If the terms of settlement (offered by the bank) are accept-

able to the complainant in full and final settlement of his complaint, the Banking Ombudsman will pass an order as per the terms of settlement which becomes binding on the bank and the complainant.

20. What happens if the complaint is not settled by agreement?

If a complaint is not settled by an agreement within a period of one month, the Banking Ombudsman proceeds further to pass an award. Before passing an award, the Banking Om-budsman provides reasonable opportunity to the com-plainant and the bank, to present their case.

21. What will the Banking Ombudsman consider for passing an award?

For passing an award, the Banking Ombudsman is guided by the documentary evidence placed before him by the par-ties, the principles of banking law and practice, directions, instructions and guidelines issued by the Reserve Bank of India and such other factors, which in his opinion are neces-sary in the interest of justice.