Consumer Banking of ABN-AMBRO Bank, India and an Analytical Review of its Past, Present and Future Trends

ACKNOWLEDGEMENT
I would like to express my sincere gratitude to Mr. Atish Diapnkar (Assistant Sales Manager, Liabilities) for giving me the opportunity to work with his esteemed organization. It was very enriching and enlightening experience to work under his valuable guidance. I am thankful to him for providing me with a clear basis to start the project with and for providing valuable feedback during the course of this project without which the study would not have been possible. I also thank all the executives of ABN-Ambro Bank , India (Noida-NCR) for sparing their precious time for being a part of the study. Finally and most important I would like to thank Dr. Debashish Chaudhury, my faculty guide because whatever knowledge I have today pertaining to the following dissertation study and approach is only because of his teaching.

EXECUTIVE SUMMARY
Company Name: ABN-AMBRO BANK, INDIA Project Location: Noida-NCR (Uttar Pradesh) Project(s) Done a study of the consumer banking of ABN-Ambro Bank, india and an analytical review of its past, present and future trends ABN-Ambrois the world's leading emerging markets bank. it employs 32,000 people in over 500 offices in more than 56 countries in the asia pacific region, south asia, the middle east, africa, united kingdom and the americas. the bank is into serving both consumer and wholesale banking customers. the consumer bank provides credit cards, personal loans, mortgages, deposit taking activity and wealth management services to individuals and medium sized businesses. the wholesale bank provides services to multinational, regional and domestic corporate and institutional clients in trade finance, cash management, custody, lending, foreign exchange, and interest rate management and debt capital markets. foreign banks in india are subject to the same regulations as scheduled banks. they are permitted to accept deposits and provide credit in accordance with the banking laws and rbi regulations. currently about 25 foreign banks are licensed to operate in india. foreign bank branches in india finance trade through their global networks. the expertise of ABN-Ambro Bankwith over 150 years' experience, global network of 500 offices in 56 countries making it one of the leading providers of treasury financial services.

as the largest independent distributor of third party funds, ABNAmbro Bank gives investors choice, unbiased evaluation of funds and a portfolio management account that matches your risk profile and investment goals. with years of banking experience, ABN-Ambro Bankis undoubtedly in a strong position to help growing businesses sail through the complexities operates. apart from the above detailing, my project involved informal discussion with some of the executives in the field for improving the aggressive promotions which were found to be poor during the study. also i was associated with certain marketing tasks to locate some strategic areas in the region concerned where new bank branches and atms could be put up. they may face. ABN-Ambro Bankrecognizes its responsibilities lies to its staff and to the communities in which it

INTRODUCTION
INDIAN BANKING SECTOR The Reserve Bank of India (RBI) is India's central bank. Though public sector banks currently dominate the banking industry, numerous private and foreign banks exist. India's government-owned banks dominate the market. Their performance has been mixed, with a few being consistently profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership. PRIVATE AND FOREIGN BANKS The RBI has granted operating approval to a few privately owned domestic banks; of these many commenced banking business. Foreign banks operate more than 150 branches in India. The entry of foreign banks is based on reciprocity, economic and political bilateral relations. An inter-departmental committee approves applications for entry and expansion. CAPITAL ADEQUACY NORM Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993, while Indian banks with overseas branches had until March 1995 to meet that target. All other banks had to do so by March 1996. The banking sector is to be used as a model for opening up of India's insurance sector to private domestic and foreign

participants, while keeping the national insurance companies in operation. BANKING India has an extensive banking network, in both urban and rural areas. All large Indian banks are nationalized, and all Indian financial institutions are in the public sector. RBI BANKING The Reserve Bank of India is the central banking institution. It is the sole authority for issuing bank notes and the supervisory body for banking operations in India. It supervises and administers exchange control and banking regulations, and administers the government's monetary policy. It is also responsible for granting licenses for new bank branches. 25 foreign banks operate in India with full banking Licenses. Several licenses for private banks have been approved. Despite fairly broad banking coverage nationwide, the financial system remains inaccessible to the poorest people in India. INDIAN BANKING SYSTEM The banking system has three tiers. These are the scheduled commercial banks; the regional rural banks, which operate in rural areas, not covered by the scheduled banks; and the cooperative and special purpose rural banks.

SCHEDULED AND NON SCHEDULED BANKS There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200 regional rural banks; more than 350 central cooperative banks, 20 land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.

BACKGROUND
The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has finally worked up to the competitive dynamics of the new Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Banks that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirements of the large customers base. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The

Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. The Banking Industrys marketing environment faced a resurgent Govt. policy and geared up for a huge overhaul involving upgradation branches. The last year i.e. 2005-06 being the decade-end after dismantling of nationalization and deregulation of the sector, has been a year of consolidation for the Bank. The Bank developed its own marketing strategy and went for a massive expansion exercise. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). almost 50% of deposits and 60% of advances. The banking in India is highly fragmented with 30 banking units contributing to Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized, private banks and specialized banking institutions. The Reserve Bank of India act as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost (improved equipment/facilities, structures) and modernization (rebuilt/re-design/re-vamp facilities, structures) of its

monitoring body in the Indian financial sector. Indian banking arena.

The nationalized

banks (i.e. government-owned banks) continue to dominate the Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. in order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. SOURCE: ABN-AMRO Bank, India Annual Report, 2005-06

RESEARCH OBJECTIVE DESIGN

OBJECTIVES

1. To study the brief history of the Bank. 2. To formulate a comprehensive SWOT Analysis. 3. Study on the services being offered in tune to the Consumer Banking approach. 4. A study on the present standing of Banks Accounts in the industry. 5. Comparative study of the saving accounts with other leading MNC Banks of India. RESEARCH HYPOTHESIS NULL HYPOTHESIS Services and facilities offered by ABN-Ambro Bank , India, in tune with the changed business scenario (aggressive sales and promotions) of the banking sector is not adequate and effective. ALTERNATIVE HYPOTHESIS Services and facilities offered by ABN-Ambro Bank , India, in tune with the changed business scenario (aggressive sales and promotions) of the banking sector is adequate and effective.

RESEARCH METHODOLOGY
The research methodology deals with the following questions: 1. AREA DEFINED The research is concentrated in Noida-NCR, Uttar Pradesh. All the branches in the targeted area were contacted to be a part of the study. 2. SAMPLE PLAN AND SIZE The survey was done using Non-Probability Convenience Sampling. The sample size was fixed to eight offered services with 39 fulltime operative Bank branches.

Personal Finance Credit Cards Priority Banking Investment Advisory Services

Personal Investments Insurance Deposits and Retail Services Retail FX Products

3. DEVELOPMENT OF SURVEY QUESTIONNAIRE The following thoughts were kept in mind while acquiring data like Clear research objective research. which describes the kind of

information needed, the hypothesis and the scope of the

Descriptive, experience-based research, which provided an accurate snapshot of some aspect of market environment such as the services offered by ABN-Ambro Bank in keeping

up with the changed banking scenario in Noida-NCR. A pilot testing of the plot was done along with the Company sales team before going in to the actual field. The objective was to rate the services offered by ABN-Ambro Bank on different issues pertaining to their daily aspects of business in Liabilities-Wealth Management and these demanded in favour of a descriptive, experience-based research using the probing method and that too with personal visit for taking responses to ensure the proper feedback. While framing the study few important things were kept in mind such as the language, which is simple and easy to comprehend. The queries were kept short enough to make them easy to understand. Ambiguity in responses has been avoided. Special care has been taken that we have a short and effective discussion so that we get all the information that the study needs. 4. COLLECTING THE DATA Data collection has been done from both sources primary as well as secondary. Primary data: It has been collected by meeting various managers of the ABN-AMRO Bank, Citibank, ABN-Ambro Bank , ICICI, HDFC, HSBC, GTB, UTI and IDBI. Secondary data: From newspaper, magazines, Libraries. The data was collected by getting the respondents to interact on a one to one basis, as it facilitated explaining to them questions in which they had doubt.

5. THE RESPONSE RATE All the respondents sincerely answered to the questions. To facilitate better survey on an average 45 minutes to one hour was spent on every counted heads; every aspect of ABN-Ambro Bank services were more or less discussed during the survey.

LITERATURE SURVEY
ABN-Ambro Bank sets up a 100 per cent Subsidiary Our Banking Bureau 11 March 2007 Mumbai: ABN-Ambro Bank has set up ABN-Ambro Bank Investments and Loans (India) Ltd (SCILL), an NBFC, which will be ABN-Ambro Bank 100 per cent subsidiary. "We have set up the NBFC since that will increase our liquidity, we plan to raise commercial papers, non-convertible debentures and inter-corporate deposits in the local debt market," said , CEO, India Region, ABN-Ambro Bank , at a press conference held here. The foreign bank has chosen this route to access the domestic capital markets. SCILL will start with an equity capital of $7.5 million, which will be scaled up to $50 million over 18 months. The company hopes to build up a Rs 1,100-crore balance sheet in a year's time by disbursing funds to top corporates in India. The NBFC's corporate clientele would be similar to that of the bank's client list, said Mr. M.A. Ravikumar, Regional Head, Global Markets, ABN-Ambro Bank .

ABN-Ambro Bank Mumbai Marathon 2006 2005 ABN-Ambro Bank , India Business Standard, Mumbai, January 25, 2005 The ABN-Ambro Bank Mumbai International Marathon 2005 was arguably one of the biggest sporting event in the city of Mumbai in recent times. The mood was upbeat, the adrenaline pumping, and the national flag was held high as Mumbai and India wore its heart on its sleeve. Celebrities and corporate head honchos in 1000s ran and raised money for a cause they supported. Over Rs.1 crore was raised through the event for various charities. Give India is the first "philanthropy exchange" in India. Managed by the nonprofit GIVE Foundation, GiveIndia doesn't seek donations for itself, but helps you make your donations more efficiently and effectively, to a cause you choose. GiveIndia is the Official Charity Partner to the ABN-Ambro Bank Mumbai Marathon 2005 (SCMM 2005). As a tribute to the spirit of Mumbai, charity will be at the heart of this year's event. Special packages have been designed to encourage people to raise pledges for a cause of their choice. A slew of support activities are planned and materials created to help anyone who

would like to make a difference, reach out and do so. Over 100 charities will participate, and we hope to raise several crores of rupees for them. Why Run for a Cause Because it is a great way to show that you care; Because running for a cause and raising pledges can be great fun, and can be much easier than you think - ask any of the people who did so last year; Because the 35,000 people who run the London Marathon raise 35 million or over Rs.250 crores every year for their charities. As do runners at the New York, Boston and Singapore marathons. Because you choose the cause or charity you would like to run for, a charity that you trust to use the pledges you raise in a transparent, accountable and effective way to make a difference to the lives of the underprivileged. There are 3 ways for an applicant to raise pledges The Dream Team The Corporate Challenge The Pledgers' United

ABN-Ambro Bank Fund Mgmt. joins the game Indian Express, Wednesday December 15, 2004 3:26 AM By Monika Halan ABN-Ambro Bank AMCs draft offer document for its new closed end debt fund is now on the Sebi website. Called Grindlays Relief Bond Fund, the offer from ABN-Ambro Bank Mutual Fund, is the second fund offering to call its debt fund a Relief Bond Fund. As reported earlier by this newspaper, HDFC AMC has already used the term Relief Bond Fund for its debt fund offering without offering any substantial reason for using the word relief in the scheme name. It is feared that the words Relief Bond will confuse the small investor who may associate the mutual fund with the RBI paper that is no longer in the market, but whose brand name is still popular. The CEO of ABN-Ambro Bank AMC Naval Bir Kumar did not respond to calls to his office on this issue, but others in the industry are concerned about confusing nomenclature of scheme names. Says A.P. Kurien, Chairman of the Association of Mutual Funds in India (AMFI), the industry association: There should be truth in labelling of fund schemes. We need to examine what relief the fund houses are offering. Amfi will take an official view on this in a couple

of days. RBI had good reason to call its bonds relief bonds, since they offered tax relief. There seems to be no reason given in the ABN-Ambro Bank offer document that offers a clue as to what the relief in the scheme will be. The investment objective of the Grindlays scheme is growth of capital by investing in a portfolio of fixed income securities normally in line with the duration of the scheme. The asset allocation is debt and money market instruments (100 per cent). The risk profile: Low to medium. So, the scheme is not limited to buying government or institutional paper or offering low-risk, tax-free returns. The aim is growth that comes with low to medium risk. The RBI paper was associated with zero risk and tax breaks. However, things may look up for the retail investor because sources in SEBI say some change can be expected in the name of these funds.

PROFILE OF ABN-AMBRO BANK

SERVICES PROVIDED BY ABN-AMBRO BANK

Through the network of over 500 offices in more than 50 countries, ABN-Ambro Bank offers personal financial solutions relevant to you as an individual. ABN-Ambro Bank treasure building a relationship with the customer, developing an understanding of customers changing financial needs at different stages of your life. Their long heritage of nearly years has enabled them to change with time, offering quality products by means that are convenient to customer. ABN-Ambro Bank offer includes:

Personal Finance Credit Cards Priority Banking Investment Advisory Services

Personal Investments Insurance Deposits and Retail Services

1. PERSONAL FINANCE Mortgages In many of the markets where ABN-Ambro Bankoperate, especially in key markets of Hong Kong, Singapore, Malaysia, they are reported to be the market leader for mortgages. Their experienced and dedicated teams will guide the individual in every single step to enable him a smooth and hassle-free experience, offering him rates and repayment

packages most suitable. Start by trying our "instant approval service. Unique Features:

Low interest rates, option of flat or reducing interest rates Low EMI (equated monthly installments) No hidden costs like processing charge. Everything is done up front. Quick approval and realization. Tax benefits. No unfair collateral demands. A simple mortgage process. Personal Loans ABN-Ambro BankBank helps the customer to be in control of his/her own finances. Personal Loans, without any guarantees or collaterals, are available to customer to meet specific credit needs. Choose Installment Loan or Revolving Loan, whatever suits best. Whether planning a vacation, re-decorating home, paying for child's college education, or simply wish to have a standby line of credit for unforeseen expenses, ABN-Ambro BankBank's Personal Loans can help fulfill the dreams. Personal loan is specially designed to get the money need in time, without having to answer unnecessary questions, and without any collateral or mortgages.

Unique Features: Choose the repayment plan most convenient, ranging from a compact 12-month period to a comfortable 36-month span. Free to use the money for renovating house or meeting some unexpected expenses etc. No collateral or security. Quick and easy processing.

2. CREDIT CARDS ABN-Ambro BankVisa and MasterCard credit cards ABN-Ambro Bankcredit cards provide financial flexibility, worldwide acceptance, and round-the-clock convenience. Benefits: Welcomed at the largest number of merchant outlets

across the world. Revolving credit facility, allowing repaying card

outstanding over time, at a convenience. Cash withdrawal in local currency at Visa and MasterCard

linked ATMs across the world. Platinum, Gold or Classic cards to suit lifestyle and needs. Smart credit cards with special privileges and security. Attractive rewards programs.

Affinity and co branded credit cards that give additional

benefits from our partners. line. 3. PRIORITY BANKING World-class service assistance and 24-hour customer help

Experience new standards in banking. And lead a life of privilege and preferred financial solutions tailored perfectly for you - with Priority Banking from ABN-Ambro Bank . Designed specially for those who appreciate only the finest things in life, Priority Banking offers the very highest levels of personalized banking to match unique status. By embracing a holistic approach to financial well being and commitment to personal Wealth Management with a full range of innovative products and services, a customer will find banking with a reassuring and secure experience. Bank is committed to helping a plan, build and protect wealth by offering individual attention as well as international banking and investment opportunities to meet current and future needs. ABN-Ambro BankBank Priority Banking is created specifically for a chosen few individuals, who will settle for nothing but the best and demand the highest standards of service in all your banking relationships.

Unique Features:

Personalized Priority card will give instant recognition of priority status at all branches of ABN-Ambro Bank, worldwide.

dedicated

Customer

Relationship

Manager

trained

to

understand specific financial needs and help to manage assets at home and abroad. It is as personalized as can be. Preferential pricing on our various products. Entitled to exclusive benefits.

A complimentary pre-approved Gold Standard Credit Card .

Commission free VISA traveler's cheques. Special foreign exchange rates. Special invitations to exclusive events. Many account facilities, which are absolutely free of charge. Priority Banking. It's like owning the bank. 4. INVESTMENT ADVISORY SERVICES The ABN-Ambro BankInvestment Advisory Services is comprehensive process that assists in planning for future. With this service, they can help to review financial goals, conduct a financial health check, evaluate risk profile and customize an asset allocation plan to realize financial aspirations.

5. PERSONAL INVESTMENTS

ABN-Ambro Bankis the leading independent distributor of unit trusts and mutual funds in Asia. Because they don't actually manage their own investment funds, they are absolutely objective in fund evaluation process. Bringing unmatched skill, expertise and know how to seek the best performing investments around the world, it can be assured of different investment options and a wealth of informative and relevant updates. With trained Investment Services Consultants from countries around the globe, they can help to make the right investment decisions. Using a unique risk evaluation to gauge the level of risk customer can be comfortable with, coupled with a proprietary fund evaluation process to identify funds, assess risks and shortlist top-performing funds; customer can be ensured of a personalized investment portfolio catered to needs. ABN-AmbroBank Investment services puts a whole new world of possibilities within the reach of people who would like to achieve their financial goals but have many other demands on their time. Unique Features: A one-stop shop offering a wide range of investment options to grow your wealth.

Available across 8 cities.

Trained investment services counselors.

 Sophisticated research franchise. Impartial and unbiased analysis on options best suited. Tailor made investment plans suited to risk taking ability. 6. INSURANCE ABN-Ambro Bank recognizes the things important to customer and his family. They are dedicated to protecting the customer, his family, and his hard earned assets and even his future earnings giving him the assurance he needs. Their strategic alliance with Prudential and CGU Insurance puts us in a very strong position to provide for Life and General Insurance needs. With a comprehensive range of products, ABN-Ambro Bankis set to protect the World. 7. DEPOSITS AND RETAIL SEVICES Deposits ABN-Ambro Bankoffers a wide array of deposit products in both local and foreign currencies to help to earn competitive interest rates. Their international network offers an extra convenience while abroad. In some countries, they offer premium interest savings plans like Higher Education Fund to turn the dreams into reality. Retail Services ABN-Ambro Bankoffers a comprehensive range of retail services in many countries. These include:

 Automated banking services. Demand drafts. Foreign exchange services. Local and foreign currency cheques. Safe deposit boxes. Telegraphic transfers. Travelers cheques. ADDITIONAL SERVICES INTERNET BANKING Youre banking needs now taken care of at the click of a mouse. With Secure Internet Banking ID and Password, a customer can login and take care of his/her banking and credit card needs at his/her convenience and time. No more queues, no more waiting.

1.

PHONE BANKING

As part of commitment to meeting all needs, ABN-Ambro Bankoffer Phone Banking - a service that enables you to access a wealth of financial information, 24 hours a day, 7 days a week. Through Phone Banking: Check your account balance. Get details about specific transactions. Inquire about the status of a particular cheque. Order demand drafts.

 Transfer funds amongst your linked accounts. Get information on deposit rates, lending rates, exchange rates and bank charges. Access information on any of our products and services. Call Room Service to open your account. Make complaints and suggestions.

3.

MOBILE AND E-MAIL ALERTS

ABN-Ambro Bankalways try and make life simple. Mobile and E-mail Alerts' service is designed just for that. 4. SMARTFILL DEBIT CARD

Smart fill Debit Card, launched in association with Bharat Petroleum, will help to save on fuel purchases and even gets you free fuel. Unique Features:

Earn reward points every time you use the card to make purchases ANYWHERE, which you can then redeem for fuel at select Bharat Petroleum outlets. When the card is use to make purchases at select Bharat Petroleum outlets, the customer don't have to pay the 2.5% surcharge levied on most credit or debit cards. Smart fill Debit Card is globally valid. It gives access to 12 million merchant establishments worldwide and over 55,000 in India.

A customer can access over 3500 ATMs in India for FREE* and over 750,000 ATMs worldwide through the Visa ATM network. The card gets an exclusive discount of 5% at select In & Out stores at Bharat Petroleum outlets, besides benefits at leading retail outlets and restaurant.

5.

ATM

ABN-Ambro Bank ATMs give the freedom to conduct most of the banking transactions 24 hours a day, 365 days a year. The ATM card is and absolutely free. There are no transaction charges on the use of card. What's more, use ATM card at any of the 50 ATM centers across the country.

6.

CREDIT CARD HELP-LINE

As part of commitment to meeting all needs, ABN-Ambro Bankoffer the facility of calling them over the phone to access a wealth of information on credit cards, 24 hours a day, 7 days a week.

7.

ELECTRONIC CLEARING SYSTEM

ABN-Ambro Bankintroduces ECS (Electronic Clearing System), an innovative facility for busy people. With this facility, Card bill amount automatically gets debited from your savings bank account, so that customer doesnt have to worry about the last minute payment rush. Since this entire process happens through the Reserve Bank of

India's electronic clearing mechanism, customer can enjoy the advantages of ECS. 8. FAX BANKING Its the most efficient way to stay on top of the business finance. Every day, ABN-Ambro Bankfax a report of all transactions made the previous day. Customer will still receive his/her regular monthly statements.

MAINTANING ACCOUNTS WITH ABN-AMBRO BANK

DEPOSITS

Demand deposits

Time deposits

Saving account

Current account

Fixed deposits

Individual SAVING ACCOUNT

Twin-one account

Parivaar account

DEMAND DEPOSITS 1. SAVING ACCOUNT ABN-Ambro Bank introduces aXcess Plus - a revolutionary savings account that provides with unparalleled aXcess to money. An account primarily opened for and operated by individuals, wherein the numbers of transactions are few and which give the customer liquidity, with the facility to earn some interest on the residual balances.

With the aXcessPlus account the customer can now aXcess cash at over 1800 ATMs in India to free and at over 650,000 ATMs worldwide through the Visa network. Besides, he can use his account to shop for goods and services at over 25,000 outlets in India and at 10 million outlets worldwide, without ever having to carry cash! The aXcess Plus account provides with a globally valid debit card that provides these and a host of other exciting benefits. Unique Features: There are several unique features about the ABN-Ambro Bank's aXcess Plus account, each designed to provide the most convenient banking experience could ever get! Free aXcess to cash at over 1800 ATMs in 35 cities in India Globally valid debit card The debit can be used to make purchases at over 25,000 merchant outlets in India and at over 10 million outlets worldwide. Phone banking, Internet banking, Multi-city banking, 365 days branches, extended banking hours, lockers facility and doorstep banking. Unique free insurance benefits - lost card insurance, purchase protection and personal accident cover. Exciting usage benefits such as Travel Cash Back - discounts on airfare, Rasoi - ongoing privileges in restaurants, Fab Deals special privileges for shopping at select merchant outlets,

discounts at all BPCL IN & Out stores and special rates on BPL electronic items plus a host of other discounts vouchers. 2-IN-1 ACCOUNT The best of both worlds: A unique account that offers you double advantage, letting you earn the High interest rate of a fixed deposit while you enjoy the flexibility of a savings & current account. PARIVAAR ACCOUNT One-stop solution for your entire family's banking needs: A unique Wealth Management Solution that offers the family flexibility and tools for wealth accumulation and preservation. 2. CURRENT ACCOUNT An account opened and operated primarily by corporate for

commercial use, wherein the numbers of transactions are much higher than a normal savings account. No interest is paid on these accounts.

Unique Features: High Liquidity Unlimited transactions Zero Interest Any branch banking

TERMS DEPOSITS A term deposit is a deposit held for a contracted period of time and a contracted rate of interest. The Rate of interest for term deposits is higher than that applicable for a normal savings account and Penal rates of interest is applicable if the deposit is withdrawn before the contracted period. Terms deposits rates:

INTEREST RATE (CARDED) FOR TERM DEPOSITS W.E.F.April 27,2006 DOMESTIC/NRO Revised Rate Current Rate Tenor 15-29 Days 30-59 Days 60-89 Days 90-99 Days 100 Days* 100 Days* 100 Days 101-179 Days 180-219 Days 220 Days*. 220 Days*. 220 Days 221 Days<1 Yr. 1 Yr. < 13 Mths. 15 Amount (in INR) effective 6-April-06 Any Amount 4.00% Any Amount 4.25% Any Amount 4.50% Any Amount 4.50% < 15 lakhs 5.00% >=15 lakhs <=1Cr. >1 Cr. Any Amount Any Amount <15 lakhs >=15 lakhs<=1 Cr. >1 Cr. Any Amount Any Amount 5.25% 5.00% 4.50% 4.75% 5.25% 5.50% 5.25% 4.75% 5.00% effective 27April-06 4.00% 4.25% 4.50% 4.50% 5.00% 5.25% 5.00% 4.50% 4.75% 5.25% 5.50% 5.25% 4.75% 5.00%

Days 13 Mths 15 Days* 13 Mths 15 Days* 13 Mths 15 Days 13 Mths16 Days<15Mths 15 Mths* 15 15 15 18 Mths* Mths Mths < 18 Mths Mths*

<15 lakhs >=15 lakhs<=1 Cr. > 1 Cr. Any Amount < 15 lakhs >=15 lakhs<=1 Cr. > 1 Cr. Any Amount < 15 lakhs >=15 lakhs<=1 Cr. > 1 Cr. Any Amount Any Amount Any Amount Any Amount

5.75% 6.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.05% 5.35% 5.60%

5.75% 6.00% 5.00% 5.00% 6.00% 6.25% 5.00% 5.00% 6.25% 6.50% 5.00% 5.00% 5.05% 5.35% 5.60%

18 Mths* 18 Mths 18 Mths < 2 Yrs. 2 Yrs.< 3 Yrs. 3 Yrs.< 4 Yrs. 4 Yrs.<= 5 Yrs.

SWOT ANALYSIS
STRENGHTS Market position is strong Aggressive foreign bank Shareholders return has grown more than 7 times Maintains a position as a leading Asian Cash Management provider Brand - SCBs modern and dynamic look appeals to the growing middle income earners One of the most profitable MNC in India Improved product proposition Better geographic balances Multi-cultural organization that offers opportunities to good managers WEAKNESS

HDFC, ICICI, ABN-Ambro Bank , Citibank and HSBC are dominant players Has disadvantage due to last entry Fewer locations as compared to other MNC banks Service delivery perception is weak

OPPORTUNITIES Branch expansion for rapid growth Increase focus on value creation in whole banking Improve shareholders return Build market share in consumer banking as consumer banking continues to offer highest potential for growth Broadening of the demographic base Tie ups with master card networks Integrated sales and service approach Can offer a complete corporate package into under proposed corporate relationship THREATS IDBI is pitching in quite aggressively Citibank is expanding in new markets Competitive products and offers from ICICI and HDFC Proposed networking of all branches in next 6 months Reduced business in OECD business

RECOMMENDATIONS STRONG NEED OF BRAND BUILDING

The bank needs to make a lot of marketing effort. The level of recognition that may be desired by any brand has not been achieved by ABN-Ambro Bank, Noida. A lot of noise is made whenever a child is born and as long as that noise is not made the doctors are not sure about the life of that child. Same is the case in marketing. Whenever a new branch comes into existence it is necessary that they announce their birth. Here comes the pre-launch exercise, and similar is the case after the birth. The name has to be taken again. Boast about yourself, about the strong points that you have over and above your competitors. Pull the consumer towards you. As said earlier it is a relationship of trust and this trust can be generated through better and better performance of the bank. Now as working with the bank for some time the facts have come out that they believe in low costing and want to keep low profile. So better way of marketing can be sought which are low at cost. These are discussed further. PROMOTIONAL STRATEGIES Press publicity: Paper inserts Advertisements in newspaper (local and national). Interest cards distribution Mailers/personal invitations to selective section of the society Leaflets

Outdoor publicity: Banners in commercial areas and prime sites. Air balloons at shopping complex. Bus stands shelters. Off site ATM for developing business. Advertisements on Dividers and Railings.

Media: Local channel advertisement (cable TV scrolls). Advertisements in news channels and business channels.

Face to face:

Personal interaction of marketing executives through. Meetings. Detailing about schemes and updating them form time to time. Event sponsoring in local clubs and social gathering. Road shows. Contacting senior citizens in parks in morning and evening.

Advertisement strategies segmented according to the target customer Senior citizens, housewives, students, service class Personal mailers. Contacting at parks during morning and evening walks. Contacting at stoplights. Road shows at market sights. Cable TV advertisements during prime time. Stick on the newspaper. Leaflet on the wiper of the vehicles in the parking lots. Educational bodies Sponsoring some events in schools and collages. Meeting the top management for opening of salary accounts. And fee payment system of the students. Local clubs like youth clubs, laughter clubs, senior citizen clubs, ladies club, etc. Event sponsoring. Temporary banners. Advertisements in club magazines. Opening of extension counters (in case of large club). Professionals and other active samaj in the area (e.g. Jain samaj) Direct mailers. Cold calling. Informal gathering arranger by the bank for some social cause. Commercial places and market establishments:

 Cold calling. Personal visits of the executives. NEED A CHANGE IN MARKETING FOCUS The marketing team of the branch has until now focused on selling of their most competitive product, which are there fixed deposits. The rates of interest, which they provide on fixed deposits, are really competitive and highest in this market. But this strategy could not be held for a longer period of time as in the long run it would become liability to the bank to pay such high rate of interest and it would lower the revenues of the branch. Even the survey conducted proved that the fastest selling product is savings account amongst the consumer. With a network that is good enough this bank can make efforts to increase the market share in the area where the competition is so tough. This needs a brain storming from the top management in the branch as to how about fixing the targets in each category of accounts. Solid network required to develop the business further If we see the results of the survey, it is evident that people prefer strong networking system to make their banking life as comfortable and reachable as possible. For ABN-Ambro Bank to enjoy a good customer base, they should make efforts towards developing more and more ATM in the city and extension counters to facilitate better and fast service. Updating of technology from time to time is very necessary. ABN-Ambro Bank was the very first bank to start few of the very good service like Internet banking; bringing about new service to attract more and more consumers should carry on this tradition further.

Corrective positioning of ABN-Ambro Bank. ABN-Ambro bank is known for its corporate operations. Very big names in the corporate world have their accounts with this bank. For the past so many years it has been catering to these clients only and has generated an image of being a corporate bank. This product extension into the retail segment need separate focus and separate positioning in the market. The bank cannot carry on its old image for both the segments of the market. For this a distinctive advertising campaign has to be developed (refer to the promotional activities stated earlier) to reposition the brand in potential consumers mind. It should be noted that both the type of clients differs from each other in their true nature. One is a very low profile relationship, which talks about masses. This type of client requires assurance, trust, information, and support. This is retail banking. While on the other hand the second type of relationship is stronger, which is the corporate client that requires different setup all together. MAKE THE BRANCH SELF-INFORMATIVE The branch should be decorated in a manner, which would provide maximum information to the customers without any difficulty. All the schemes and products, all the service charges, days and time of transactions should be printed in a beautiful manner and hanged on the walls of the branch where customer can see with ease. This was one of the things, which were found to be absent in this branch. By doing so the customer would feel more attached and wall in will be converted in higher number of accounts. CONCLUSION

With years of banking experience, ABN-Ambro Bankis undoubtedly in a strong position to help growing businesses sail through the complexities they may face. ABN-Ambro Bank offers one of the widest ranges of banking products and services in the market today. Managing a growing business demands most of your time and energy. That is why working with the right bank can help ones business sail more smoothly and ABNAmbro Bank helps in doing that as it understands todays business requirements. The bank provides the right kind of services and accounts at the right time and according to the needs of the market. The expertise of ABN-Ambro Bankwith over 150 years' experience, global network of 500 offices in 56 countries making it one of the leading providers of treasury financial services. As the largest independent distributor of third party funds, ABNAmbro Bankgives investors choice, unbiased evaluation of funds and a portfolio management account that matches your risk profile and investment goals. Not only this, the bank provides the widest range of foreign currencies for your investment needs plus other products such as housing loan, insurance and unit trusts.

ABN-Ambro Bank provides well-developed remote channels for your banking convenience through our 24-hour phone banking and Internet banking. Not only this when made comparison with almost all the leading banks of India, ABN-Ambro Banknot only stands high among all but is giving them a fierce competition. Foreign banks in India are subject to the same regulations as scheduled banks. They are permitted to accept deposits and provide credit in accordance with the banking laws and RBI regulations. Currently about 25 foreign banks are licensed to operate in India. Foreign bank branches in India finance trade through their global networks. All commercial banks including ABN-Ambro Bankface stiff restrictions on the use of both their assets and liabilities. Forty percent of loans must be directed to "priority sectors" and the high liquidity ratio and cash reserve requirements severely limit the availability of deposits for lending. Since July 1993, foreign banks like ABN-Ambro Bankhave been required to make 32 percent of their loans to the priority sector. Within the target of 32 percent, two sub-targets for loans to the small-scale sector (minimum of 10 percent) and exports (minimum of 12 percent) have been fixed. Foreign banks, however, are not required to open branches in rural areas, or to make loans to the agricultural sector.

BIBLIOGRAPHY Websites:

www.indianexpoterregister.com www.einnews.com www.bis.org www.abn-ambro bank.com www.newspaperarchieve.com www.google.com

Books: banking and investments edited by senior bankers Bank-net directory 2005-06 Banking and Finance Glossary White paper on Banking systems survey 2005-06 Trends in Banking technology industry

Journals of ABN-Ambro Bank ABN-Ambro Broachers and Manuals. Statistical Methods by S.P. Gupta.

Articles: Business Standard, Mumbai, January 25, 2005 Indian Express, Wednesday December 15, 2004 3:26 AM

Our Banking Bureau, 11 March 2004 The Times of India- Thursday, March04 The Hindu Sunday, Feb04 APPENDIX

No. Of Income Group High Middle Low Respondents 18 11 1

Percentage of Repondents with Reference to Income Group

3% 37% High 60% Middle Low

No. Of Category Service Student Businessman House Wife Respondents 10 4 13 3

Category Wise Break Up of Respondents

10% 33%

Service 44% 13% Student Businessman House Wife

Used Services Of ABNAmbro Bank Yes No

No. Of Respondents 9 21

Used Services Of Standard Chartered

30% Yes 70% No

Source Of Information Friends & Relatives Advertisements Visit to Bank Others

No. Of Respondents (Out Of 30) 21 6 5 19

Awareness of Standard Chartered Bank

No. O f Respond en ts 40 20 0 21 6 Advertisements 5 Visit to Bank 19 Others

Friends & Relatives

Source Of Information

No. Of Respondents (Out Of 30)

Banks ICICI SBI HDFC PNB HSBC BOB Others

No. Of Users 12 15 7 11 4 5 14

Others BOB HSBC Banks PNB HDFC SBI ICICI 0 5 10 12 7 4 11 5

14

No. Of Users

15

15

20

No. Of Users

Features Good Customer Care Security Of Money Goodwill Of the Bank Network Of the Bank Location Of the Bank

No. Of Respondents 25 19 18 16 16

No. Of Respondents

Influencing Features Of A Bank

30 20 10 0 25 19 18 16 16

Good Security Of Goodwill Of Network Of Location Of Customer Money the Bank the .Bank the Bank Care Features
No. Of Respondents

Services ATM Door Step Banking Phone Banking Mobile Banking Multicity Branching 24-Hour Banking Internet Banking

No. Of Respondents 23 12 21 9 15 2 12

Services Used By Account Owners

No. Of Users 25 20 15 10 5 0 23 12 21 9 Phone Banking Mobile Banking 15 2 Multicity Branching 24-Hour Banking Internet Banking 12

Door Step Banking

ATM

Services

No. Of Respondents

If Yes Which Services Of ABN-Ambro Bank ATM Door Step Banking Phone Banking Mobile Banking Multicity Branching 24-Hour Banking Internet Banking

No. Of Respondents 7 3 2 1 5 3 1

Services Used By Existing Customers

No. Of Users 10 5 0 7 3 Door Step Banking 2 Phone Banking 1 Mobile Banking Services 5 Multicity Branching 3 24-Hour Banking 1 Internet Banking No. Of Respondents

ATM

Not Attributes Loan Facility Interest Rate Security Of Money Customer Care Good Network Personalized Services Very Good 0 2 3 1 0 1 Good Neutral Good Bad 1 4 1 3 1 3 3 0 2 2 2 0 5 2 2 0 2 4 1 2 4 3 1 0

No. Of Respondents

Interest Rate

6 4 2 0

4 01 1

21

33 0

3222

5 0 1 22 Custom er Care 0 0 2

12

43

10

Security Of Money

Good Networ k

Loan Facility

Attributes

Person alised Service s Very Good Good Neutral Not Good Bad

QUESTIONNAIRE ABN-AMBRO BANK [This is to get the general information from all the customers, what they think about the bank and how ABN-Ambro can be an ideal bank] 1. Which all others banks are you a user of? ICICI Bank State Bank of India (SBI) HDFC Punjab National Bank (PNB) HSBC Bank of Baroda (BOB) Others 2. If you would like to switch over to any other bank what will u like to choose? ICICI Bank HDFC Kotak Mahindra ABN-Ambro Bank

Others 3. What are the features that influence your decision while availing Any services of a bank? Good customer care Security of your money Goodwill of the Bank Network of the Bank Location of the Bank 4. Which all services of the bank do you use? ATM Door step Banking Phone Banking Internet Banking Mobile Banking 24 hours Banking 5. How often do you use the services of your Bank? Weekly

Monthly Quarterly 6. Are you satisfied with the services provided by your Bank? Very much Satisfied Satisfied Dissatisfied Strongly Dissatisfied 7. Have you ever used any services of ABN-Ambro before? Yes No 8. If yes, which all banking services have you used? ATM Door step Banking Phone Banking Internet Banking Mobile Banking 24 hours Banking

9. Rank the following attributes of ABN-Ambro Bank . ATTRIBUTES BAD Loan facility Interest rate Security of money Customer care Good network Personalize services 10. Your recommendations for ABN-Ambro Bank regarding Product/services. VERY GOOD GOOD NEUTRAL NOT GOOD

NAME: ____________________________ PROFESSION: ______________________ PERSONAL INCOME: _________________ CONTACT NUMBER: ___________________