MARKETING IN BANKING SECTOR

PRESENTED BY:GROUP E

BANKING SECTOR IN INDIA

COMMERCIAL BANKS
Commercial banks are the financial institution which acts as a financial intermediary which collects credit from lenders in the form of deposits and lends in the form of loans.

1) Makes loans to individuals and organizations.

2)Accepts demand deposits and time deposits.

3)Provides services as documentary collections, international banking, trade financing.

FUCTIONS OF COMMERCIAL BANKS

Primary Functions

Functions of Commercial Banks

Secondary Functions

PRIMARY FUNCTIONS
Accepting deposits Granting loans and advances

SECONDARY FUNCTIONS
Issuing letters of credit, travellers cheques. Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers; Providing customers with facilities of foreign exchange. Transferring money from one place to another; and from one branch to another branch of the bank.

Contd..
Collecting and supplying business information. Issuing demand drafts and pay orders. Providing reports on the credit worthiness of customers

STATE BANK OF INDIA

i Largest nationalized commercial bank in India. i In terms of assets, number of branches, deposits, profits and workforce. i Headquarters in Mumbai, India and employs about 205,896 people.

7 Ps Of MARKETING
Product Process Price

Physical Environm ent

7 Ps
People Promotion

Place

Investment banking

Credit Cards

Commercial Banking

Mortgag es

PRODUCTS

Retail Banking

Pensions
Asset Management

Private Banking

INVESTMENT BANKING

An investment bank is a financial institution that assists corporations and governments in raising capital by underwriting and acting as the agent in the issuance of securities.

RETAIL BANKING
Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth.

PERSONAL BANKING
State Bank of India offers a wide range of services in the Personal Banking, SBI offers the products which are designed with flexibility to suit customers personal requirements. Enjoy 24 hour facility through SBI ATMs growing speedily it has crossed the 21000 mark. It includes SBI Term Deposits, SBI Loan For Pensioners, SBI Recurring Deposits, Loan Against Mortgage Of Property, SBI Housing Loan, Loan Against Shares & Debentures, SBI Car Loan, Rent Plus Scheme, SBI Educational Loan, Medi-Plus Scheme, SBI Personal Loan, Rates Of Interest SBI now provides your Account Balance and Transaction details over phone round-the-clock. Information on deposits & loan schemes and services also available

COMMERCIAL BANKING

It is a type of financial intermediary and a type of bank. Commercial banking is also known as business banking. It is a bank that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits.

CORPORATE BANKING
SBI is a one shop providing financial products / services of a wide range for large , medium and small customers both domestic and international. Assistance extended both as Fund based and Non-Fund based facilities to Corporates , Partnership firms , Proprietary concerns. Working Capital finance extended to all segments of industries and services sector such as IT

PRIVATE BANKING
Private banking is a term for banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers.

ASSET MANAGEMENT
Asset management is the professional management of various securities and assets, to meet specified investment goals for the benefit of the investors. Investors may be institutions or private investors.

AGRICULTURE / RURAL BANKING

 State Bank of India Caters to the needs of agriculturists and landless agricultural labourers through a network of 8750 rural and semi-urban branches.  SBI branches covered a whole gamut of agricultural activities like crop production , horticulture , plantation crops, farm mechanization, land development and reclamation, digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns, processing of agri-products, finance to agri-input dealers, allied activities like dairy , fisheries, poultry, sheep-goat, piggery and rearing of silk worms.  SBI set forth to continue growth in the rural and agri development and become the Banker to Every Indian.

NRI SERVICES
SBI have products and services customised with a significant global footprint to suit customers banking needs. It includes opening of NRI account, type of deposit accounts, NRI home and car loan schemes etc.

INTERNATIONAL BANKING
International banking services of State Bank of India are delivered for the benefit of its Indian customers, non-resident Indians, foreign entities and banks through a network of 163 offices/branches in 33 countries as on 31st July 2011, spread over all time zones. It involves trade finance, correspondent banking, merchant banking, project export finance, exporter gold card, treasury, offshore banking etc.

OTHER SERVICES
It includes :  DOMESTIC TREASURY  BROKING SERVICES  REVISED SERVICE CHARGES  ATM SERVICES  INTERNET BANKING  E-PAY  E-RAIL  RBIEFT  SAFE DEPOSIT LOCKER  MICR CODES  FOREIGN INWARD REMITTANCES

PLACE
 The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked, today it offers the largest banking network to the Indian customer.  The Bank is also in the process of providing complete payment solution to its clientele with its over 21000 ATMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.  With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees.  It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario.

PROMOTION STRATEGIES

SBI
Advertisement Personal Communication Sales Promotion Publicity & Public Relations Instructional Material

Personal communicat ion

Customer Service Word of Mouth

Advertiseme nts

Broadcast Print Internet Outdoor Direct Mail

Sales Promotion

Gifts Discounts

Publicity

Press Conference Special Events Sponsorship

Instructional Material

Website Manual

%RATES
 BPLR (State Bank Advance Rate) revised upwards by 50 bps from 14.25% p.a. to 14.75% p.a. w.e.f13.08.2011.  Base Rate revised upwards by 50 bps from 9.50% p.a. to 10.00% p.a. w.e.f 13.08.2011.  Domestic deposits (below Rs one crore) interest rates revised w.e.f. 13.08.2011.  Domestic deposits (Rs one crore & above) interest rates revised w.e.f. 07.11.2011.  Saving bank deposit interest rates is 4.00% p.a. (w.e.f. 03.05.2011).

Tenors

Existing w.e.f. 11.07.2011

Revised w.e.f.13.08.2011

7 days to 90 days

7.00 7.25

7 days to 90 days

7.00 7.25

91 days to 179 days

DOMESTIC TERM DEPOSITS

91 days to 179 days 180 days to 240 days

6.50 180 days to 240 days

7.00

7.75

7.75

241 days to less than 1 year

241 days to less than 1 year

1 year to less than 2 years

9.25

1 year to less than 2 years

9.25

2 years to less than 3 years

9.25

2 years to less than 3 years

9.25

3 years to less than 5 years

9.25

3 years to less than 5 years

9.25

5 years and up to 10 years

9.25

5 years and up to 10 years

9.25

Tenors

Existing w.e.f. 21.10.2011

Revised w.e.f.07.11.2011

7 days to 14 days 8.50 15 days to 30 days 8.50 31 days to 45days 8.50 46 days to 90 days 8.50 91 days to 179 days 8.50 180 days to 240 days 8.00

7 days to 14 days 8.50 15 days to 30 days 8.50 31 days to 45 days 8.50 46 days to 90 days 8.50 91 days to 180 days 8.50

181 days to 240 days 8.00

241 days to 270 days 8.00 271 days to less than 1 year 8.25

241 days to 270 days 8.00 271 days to less than 1 year 8.25

1 year to less than 2 years 9.00

1 year to less than 2 years 9.00

2 years and above 8.75

2 years and above 8.75

PEOPLE
List of Directors on the Central Board of SBI
Sr. No. Name Designation Under Section of SBI Act 1955

1 2 3 4 5 6 7 8 9 10 11 12 13

Shri Pratip Chaudhuri Shri Hemant G. Contractor Shri Diwakar Gupta Shri A. Krishna Kumar Shri Dileep C. Choksi Shri S. Venkatachalam Shri D. Sundaram Shri Parthasarathy Iyengar Shri Jyoti Bhushan Mohapatra Shri G. D. Nadaf Shri Rashpal Malhotra Shri D. K. Mittal Dr. Subir V. Gokarn

Chairman Managing Director Managing Director Managing Director Director Director Director Director Workmen Employee Director Officer Employee Director Director Director Director

19 (a) 19 (b) 19 (b) 19 (b) 19 (c) 19 (c) 19 (c) 19 (c) 19 (ca) 19 (cb) 19 (d) 19 (e) 19 (f)

TARGET MARKETS
Two Types: y Current users y Proposed users 1. Rural population 2. Markets of tier II and tier III cities with MFs 3. 4. Working Class(High Net Individuals) Increasing Middle Class

COMPETITORS

STRENGTH

WEAKNESS

Brand Name Wide Distribution Network Market Leader Diversified Portfolio Low Transition Cost Highest market Capitalization & Profits

Hierarchical management structure Highest non performing assets (NPAs)

OPPORTUNITIES
Financial Inclusion Rural India Merger of associate banks with SBI Global expansion Micro Finance Branch Expansion Strong economic growth Corporate demand for credit

THREATS
Advent of MNC banks Changing interest rates and the changing policies of RBI Competition in the retail segment Private banks in the rural and semi-urban sector Change in government policies