Rohit Jain SIP Report

8/3/2019 Rohit Jain SIP Report

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A REPORT

ON

A comparative study of customer advisory on

investment done by Private and Public Bank.

The report is submitted as partial fulfillment of the

requirement of PGDM program of ITM Businessschool, Siruseri Chennai

By

ROHIT JAIN

CH2009PGDM15F22

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INSTITUTE FOR TECHNOLOGY AND MANAGEMENT

BUSINESS SCHOOL

SIRUSERI,CHENNAI

Sip letter from organization

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Table and contents

Serial No. Topic Page no.

Cover and title page 1

Certification 2

Acknowledgement 3

Table of content 4

Abstract 5

Introduction 6

1.1 Overview of the project 8

1.2 Purpose 8

1.3 Scope of the Project 8

1.4 Limitations 9

2 Research methodology 9

2.1 Research design 9

2.2 Selection of sample 9

2.3 Sample size 9

2.4 Hypothesis testing 10

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2.5 Methods of data collection 10

2.6 Customer advisory 10

2.7 Effectiveness of customer advisory 11

2.8 Who do work for customer advisory ? 11

2.9 Pitching of products 13

3 Main text 15

3.1 HDFC Organization profile 15

3.2 Preferred banking 15

3.3 Comprehensive wealth management 16

3.4 Privileges 17

3.5 Eligibility criteria 19

3.6 Classic customers 20

3.7 Benefits 21

3.8 Eligibility 21

3.9 Imperial customers

4 SBI Bank overview 22

4.1 Factors influence customer most 22

4.2 Personal banking 22

4.3 Term deposit 23

4.4 Sbi home loans 25

4.5 Education loan 27

4.6 Sbi saral personal loan 29

4.7 Yatra foreign travel car 31

4.8 Advisory in bank

Types of customers

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5 Overview axis bank 35

5.1 Customer advisory 35

5.2 Types of customers 37

5.3 Flow of advices in axis bank 39

Analysis/Findings 41/42

Conclusion 43

Suggestion 44

Annexure 45

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ABSTARCT

Every Customer Matters seems to be catch ward for

Modern Banking system. Customer advisory is based on

simple premise, as bank develops stronger relationship

with best customers; they stay with bank and become

more profitable. Knowing value of each customer andmaking them more loyal is evolving logic of advisory

services and effectiveness of keep on implementing the

same and helping the customer into their investment.

Public sector banks have some advantages such as low

interest rate which is their main tool to get more

customers without much of hard work but Banks in

Private sector are more aggressive in terms of services &

facilities offered to the customers. Customer targeting &advisory services have revolutionized industry and

gradually public sector banks have started implementing

these strategic approaches over the customers.

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Introduction

1.1 Overview of the project

Customer advisory is the modern way of Banking in India. It is

giving new definition to the banking industry, now days banking

has turned in to the very competitive industry which is evolving

gradually. Customer advisory is a very effective tool in terms of

revenue generation and customer retention. Every customer

wants be treated very well and hope to get profit out of

investment which has been done or will be there in the future,here customer advisory comes in picture to give support in

customers investment and making customer more loyal over the

bank.

1.2 Purpose of Customer advisory services

Generally when person thinks about investing money then few things always come in mind ofthe customers such as

Rate of return-

It depends up on the need of money in future, some time customers are not sure how they aregoing to use that amount in the future. Customer always can not arrive at the rate of return formhis investment here at this point of time customer advisory helps customer for their investments.

Market environment-

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Customers doesnt get enough time from his daily life to take initiative for learning the marketenvironment and without considering market condition it is very risky to invest his moneyblindly. Customer receives correct suggestion from the advisers regarding their investments.

1.3 Scope of project

Customer retention

Generally this is the implementation ofstrategic approach to increase the number ofcustomers who can keep high amount in the bank and keep giving good business toorganization.

Revenue generation-

This is the effective tool to increase revenue by using some

selected employee; contribution in revenue generation is very

significant.

1.4 Limitation

Time constraints only 45 days.

Resources constraints.

It may be biased in nature.

Rules in the different organization.

Research Methodology

2.1 Research design

This is a Qualitative study, which is concerned with describing the qualitative phenomena

particular group, my study of customer advisory is based on understanding the characteristics of

customer advisory in real banking environment which is appropriate for this.

2.2 Selection of the samples-

Non probability sampling technique has used in this subject to find out the strategic approach of

bank over advising the customers. Samples have collected from Relationship Managers and

Personal Bankers who advices to the customers.

2.3 Sample size

Sample size is 30.

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2.4 Hypothesis testing

In this study first step in testing the statement is Null Hypothesis. Null hypothesis is very

important to know the gravity of the topic selected.

Customer advisory is not important in Indian banking environment.

Reasons

Indian financial market is still growing and customer needs support in their investments.

Customer education is very important and customer advisory services do it perfectly.

Efficiency is very high as compare to traditional banking system.

Most helpful in customer retention.

Services offered by the banks are attractive for new customers, which attracts new

customers.

Customer becomes carefree regarding his investments.

Best tool for brand building by using word of mouth only. Hospitality for Customers .customers are treated according to their wish of being treated

by bank.

2.5 Methods of data collections

Questionnaire

I drafted questions to understand the concept of customer advisory. All the questions are

open-ended and very easy for the understanding of employee of Banks.

I had to collect data from the Data from the bank employees, because advisory services

are being provided to the customers by these persons only.

Observation

According to the need of mine study topic, observation is the effective and easy way to

gather more information in order to bring out some important and useful information for

the organization.

2.6 C ustomer advisory

A customer advisory service increase reliability of customers in Bank and provides aclear view of who to increasing revenues. Under this bank will have certain number of

customers who have very net worth and Relationship Managers provide advices to thecustomer. By doing this bank makes its customer very stable and not let them move tosome other banks, this gives freedom to both side, in bank's prospective it is theirsecured customers and for customers it stands as a very reliable and profit makingassistance. Despite of being very expensive banks are implementing this as their main

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toll of profitability because with these small number of customers produce high ratio inthe profit earned by the bank.

2.7 Effectiveness of customer advisory.

Effectiveness can be measured by the contribution being done by this strategy, it plays

significant role in revenue generation. Concept is very simple and effective, everycustomer wants to be treated very nicely for this he should have good investments withbanks. This is very simple give and take policy. In this both customer and bank getsprofits out of this.

2.8 Who do work as customer advisory?

Relationship managers

Personal Bankers

Role of Relationship Managers

R.M. is person with MBA degree from good collages and capable of dealing in financingwork on behalf of customers. Relationship managers look after only certain number ofcustomers, who can keep certain amount in their account. After allocating customer to therespective Relationship managers, It is deemed responsibility of R.M to not only serve hiscustomers but also to retain them in and bring business form customers.

Every Relationship manager is being upgraded by specific monthly reportscirculated by head office, which contains list of well performing products and suggestions forfuture investments to customer. List is consists of guide lines for investments according to thecurrent market environments.

There can be many R.M. in bank based on the services demanded by thecustomers, it also depends upon the geography of the area.

For example- Any branch which is at near to the I.T. industry, would require more need of R.M.who can handle high salary and suggest them for their investments of the IT industry people.

Flow of advices

It is a top down approach, starts from research and development department towardscustomers. They keep track on the customers record and investment has been done bycustomer. For this purpose they use management information systems , which helpsadvisors to select customers and approach customers to

If relationship managers wants to specific information then he can send request forspecific information.

Type of customer group

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For banks there can be two type of customers , who becomes the customers of respectivebank. Reason behind this is significant and very productive for banks in terms of revenuegeneration because banking industry depends up the ability to generate revenue. If lessnumber of customers can provide more profit as compare to large number of customersmore focus should be given.

Managed customers :This is a group of customers who receive special care form bank employees.

Bank provides them guideline on their investments and give them additional facilitieswhich are designed for them only. By being a managed customer one can enjoy theBanking.

Non managed customers

This is group of customers who are not receiving any special services onlyroutine banking services is offered to them.

2.9 Pitching of product3 Steps (circular diagram)

Before pitching product to the customers these 3 pointsshould be considered, As individual it has nosignificance but it works only when all three pointsare considered together. Each point has its ownimportance in its place.

Age of the customer :Age of customer needs to be considered first. Itreflects what are the plans customer may have for hisfuture.

For example if customer is young , he should be advisedfor more risky products for his investments such asMutual fund which has higher proportion of equity andless proportion of debt and government securities.

It depends up on the other two points as well, it

should be used all together while dealing withcustomer.

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Risk appetite of customer :This is random in nature of customer, customer mighthave some other plan for investment regardless of hisage and advices given by the Bank employee.

For example- Young customer can also ask for very safeand long term investments and senior citizen can alsoask for very risky products which would consists ofmore portion of equity and very less portion of debtand other government securities.AdvisoryRelationship managers should suggest appropriateproduct to customer which should be fulfilling therequirements and the future expectation form theperformance of product whether it would be for longterm investment or short term investments. This is notonly good for the investment of customer but also earnsgood for the name for the bank. In banking industryword of mouth plays quite significant part in add morecustomer in the Bank.

For example-Generally for the senior citizens lessrisky and monthly returns schema is advised becausethey dont have any source of income apart from theirsavings.

These three are interrelated with each others and always work together. As beingan individual identity does not have any significance in them.

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HDFC BANK

3.1 Organization profile

HDFC, India's premier private housing company enjoys an impeccable track record in

India as well as in international markets. Since its inception in 1977, the Corporation has

maintained a consistent and healthy growth in its operations to remain the market leader in

private banking services. HDFC updates itself consistently to meet its ever elevating

requirements of its valuable customers. There are various products offered by HDFC to meet

the requirements of the current E-Age trend which ease the banking process to its customers.

Wealth Advisory Service (WAS) is an additional add-on product offered free of cost with

ISA which provides unmatched exclusive service for Mutual Fund investments. HDFC Banks

in-house research team will provides frequent structured advisories based on customers risk

profile, investment objectives and financial goals. Regular update on market movements, new

fund offerings, recommended funds' performance, fund managers' views and Informative

articles on various investment products will be made so that Investments could be made with

more certainty.

With the provided database of HDFC managed portfolio customers, task of pitching and

creating awareness of products ISA and WAS to a selected band of customers has to be

accomplished. Primary objective is to have a complete study on ISA & WAS and market the

product efficiently to the target customers via mediums like phone, in-person and e-mailers.

The task has to carry with a constraint that, main business of the bank should not be tangled

due to the marketing process of cross product, so at most care has to be taken to save the

interest of the valuable customers. In addition to that the task of pitching the additional

appropriate cross products like Demat, HSL and GDC are on list based on customers interest.

3. 2 Preferred customers

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As the preferred customers, customer needs extra special attention, and

Bank assigns customer his very own Relationship manager, always on call.

Relationship Manager is an experienced and professionally trained

individual, whose primary concern is to that all your banking and financial

requirements are taken care of smoothly. So whether it is expert advice on

mutual fund investments or a demand draft that needs to be delivered at

your doorstep, trust your relationship manager to get the job done.

3.3 Comprehensive Wealth Management

To this end bank has designed convenient wealth management

solutions that range from tax saving investment avenues, buying and

selling shares to convenient tax payment options, all one roof.

Multiple investment option

Making appropriate decision on where to invest and when to invest requires

you to have an immense amount of research available at your finger prints.

What at HDFC Bank make it easier for you by offering you information and

advice on the widest range of investment options to suit your individual

needs. So you can make fully informed choices, and achieve returns, safety

and liquidity In line with customers expectations.

AMPHI certified relationship manager will make available

several investment products such as Mutual funds, insurance, RBI relief

Bonds, and other tax effective instruments avenues and help customerchoose between them, so your investment objective and earn optimal

returns in line with your risk profile.

Comprehensive Health management Program

IF customers are looking for end to end solutions for wealth

management, then look no further. R.M. will also introduce customer

to several options under our comprehensive Wealth management

Programs. Whether customers are looking at revamping a portfolio

that is performing less than optimally, or customers have fresh

invisible surplus funds to put away, you will find a solution to all yourneeds.

Seamless trading

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If customer trade in equities, customers can now opt for E-broking

through the HDFC Securities Trading accounts for easy settlement for

trading in the T+2 environments. R.M. will open a securities trading

account and link customer Demat account and saving account so

customer can enjoy a seamless flow of funds and shares between

accounts. Customers can buy or sell shares from anywhere, over

phone or over the internet.

Convenient tax payment option-

Paying customers taxes has never been simpler ! Hdfc bank is the

first private bank approved by RBI and the central board of direct

taxes to accept income tax, corporation tax, interest tax, wealth tax,

Expenditure tax through tax through cash or cheque, or contact your

R.M. who will assist customer with the process. You even save time if

you pay your tax through cash or HDFC Bank cheque, as the Challan

receipt will be returned to customeracross the counter.

Relationship Pricing :

Customer will have more preferential pricing, offered exclusive to

customers.

HDFC Securities trading Account

Account to convenience of E-Broking through Hdfc securities Trading

account. Customer can ask to R.M. for details on special pricing,

offered exclusively to Customer.

Credit Cards:

To this end bank provides TITENIUM CARD to our customers. This is

the one more way in which we thank to our customers Or customer

can avail of a free HDFC Bank International Gold Credit Card, along

with this customers are also entitled to the value added My City

Benefit Card that comes absolutely free.

Loan at preferential rates:

They can get the loans at very reduced pricing on selected loan

products.

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3.4 Exclusive privileges

Zero balance accounts:

In this customer need not to maintain average quarterly balance

applied on our savings and current accounts.

Combined monthly statement-:

Customer will receive consolidated monthly statements detailing all

transaction made on customers savings, current and fixed deposit

accounts where particular customer is the first holder.

Free Payable at Par cheque Book

Customer can have Payable at par cheque Books on their savings or

current account, which can be honored at any HDFC Bank Branchesacross the country.

50% discount on locker charges

Preferential Forex Rates

On every currency conversion (forex) transaction customer can have

benefit of an improvement of 8 paisa over the days credit rate.

Free standing Instruction

Customer can set up a convenient standing instruction on your

accounts for free and the payments will be triggered automatically.

Cheque pick up facility

Bank arranges to pickup cheques and other instruction, excluding cash

, from customers house.

Free transaction on Non HDFC ATMs

NO charges will be levied for balance enquiry and withdrawal

transaction if customer transact on non-HDFC Bank ATMs across India.

Business solutions

We also provide help for your business needs.

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Annual service charges waiver

A preferred customer deserves special services a waiver of up to Rs-

2000 per annum , on a host of service charges. The charges that are

included in this waiver are :

Demand draft/Managers cheque charges Inter branch fund transfer charges

Stop payment charges

Cheque return/collection charges

DD cancelation charges

Hold mail charges

Duplicate statement charges

Certificate of balance charges

FIRC charges

Recovery of old records charges

Free e-Age Banking

Free mobile banking

Free Net banking

Free 24-hour phone banking

ATMs

Bill Pay

Alert

3.5 Eligibility criteria

The terms and requirements for being eligible for the HDFC Bank preferred

Program, change on the basic of your geographical location.

Hold at least one Saving or current account sole or joint account, with

HDFC Bank.

Maintain a minimum Average Monthly Balance of Rs. 15 lakh across all

over the accounts (saving current and fixed deposits)

Or maintain average Quarterly balance of Rs. 2 lakh in savings

account.Or maintain an average Quarterly balance of Rs. 5 lakh in current

account.

The requisite balance can be maintained over your accounts and over

those of your immediate family members.

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3.6 Classic customers

As an HDFC Bank Classic customer, Customer and his family are now

entitled to a host of benefits, including preferentially priced products

and specified investments solutions.

4.1 Benefits

Debit cardsAs a classic customer one can avail of the gold easy shop debit card

absolutely free for life with an enhanced limit of Rs. 50,000 at

merchant establishment and ATMs.

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Alternatively customer can avail of free easy shop debit card where

annual fee of RS. 100 is waived for life.

Credit cards

As a classic customer , you will have a life time free HDFC Bank credit

cards with some exclusive offers.

Locker facility

Customer can avail of locker at any branch in the country at a 50%

waiver on annual locker rates.

HDFC Securities e-Broking Account

Customer will have convenience of e-broking through the HDFC

Securities trading account, specially priced for customer.

Monthly statement

Customer can track his money with bank, customer will receive a

statement every month. Customers Monthly statement will be

provided with details of all case and fd accounts, where customer isprinciple account holder.

Gold Bar

Customer can enjoy the best buy on Gold Bars.

Loans at special rates

Customer can take loan at preferential pricing on select loan products.

Bill payment

HDFC Bank takes the responsibility out of utility bill payments.

Customers are entitled to a waiver on annual Bill pay charges of RS.25

as long as you remain an HDFC bank classic customer.

Inasta alert

Customer can opt to be kept informed of select debit and credit

transaction on your account by registering for our insta alert facility.

You can get these alert through an SMS sent to your mobile number or

through an email sent to your email id.

Free Transaction on Non-HDFC Bank ATMs

FOREX

Customer can earn the benefit of the improvement of 5 paisa over thedays card rate, helping customer to in saving money.

Cheque book

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Customer can enjoy the benefit of payable at par (PAP) cheque book

absolutely free with no usage charge up to 1 lac.

Demand draft

Now customer can enjoy the benefit of issuing free DD/MC up to 50000

per day only in HDFC Bank locations.

Self/third party cash deposit at non home branches

This facility is available for up to Rs 1 lakh.

Demat

All classic customer can open demat accounts with 1st year annual

folio maintenance charges waived off, provided the shares are

transferred in the 1st year.

Also FMC charges from the 2nd year onwards will be reduced to Rs 250

provided the customer transfers the shares into the account within the

1st year.

Service chargesCustomer will not be charged any service charges for not meeting the

minimum Average quarterly balance requirement in your accounts, or

those of family .

Free e-age banking

Mobile banking, phone banking and wide network of ATM absolutely

free.

3.8 Eligibility

A minimum average quarterly balance of just 5 lakh insaving account(this can

Maintained across accounts of you or your immediate

family.

Or

A minimum Average monthly Balance of just 5 lakh in

acombiantion of saving accounts

And term deposit .

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Interest to be charged on premature withdrawal of term deposits at 1.00% below the rateapplicable for the period deposit has remained with the Bank.

Transferability-

Transfer of Term Deposits between our wide network of branches without any charge.

Compounding / Flexible / Timely Payment of Interest

Under our Special Term Deposit Scheme, interest accrues in your account and getscompounded quarterly. Besides, we assure timely delivery of the proceeds of your deposit withinterest, on maturity. Flexibility of payment on maturity through Cash (subject to prevalentIncome Tax Act), Banker's Cheque, Credit in Savings Bank/Current account.

Term Deposits are available at all SBI Branches

Easy and convenient access of 24X7 information at SBI Internet Banking.

Nomination Facility - Available.

Tax Implications.

Tax Deductible at Source, as per Income Tax Act.

Automatic RenewalsThere is no need for you to keep track of the maturity of your deposits. Your deposits with uswill be renewed automatically, post maturity and you continue to earn interest for same periodas that of your matured deposit, at the interest rate prevailing at the time of maturity. Automaticrenewals take place where there are no standing instructions for renewal.

Flexibility to cover your Special Term Deposit to Term Deposit and vice versa

You can convert your special Term Deposit to a Term Deposit to receivemonthly/quarterly interest payments to match your financial requirements. Quarterlyinterest at calendar quarter is also available.

You can also convert your Term Deposit to a Special Term Deposit, which providescompounded rate of interest to multiply your money faster.

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4.3 SBI Home Loans

"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ ConsumerAwards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV18 in association with AC Nielsen-ORG Marg in 21 cities across .

SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES inaccordance with SBI's commitment to Environment protection.SBI Home Loans come to you onthe solid foundation of trust and transparency built in the tradition of State Bank of .BestPractices followed in SBI mentioned below will tell you why it makes sense to do business with

State Bank of .

SBI Home Loans Unique Advantage

Package of exclusive benefits Lowest interest rates. Further, we charge interest on a daily reducing balance! Low processing charges No hidden costs or administrative charges No prepayment penalties. Reduce your interest burden and optimally utilize your

surplus funds by prepaying the loan. Over 12000 branches nationwide, you can get your Home Loan account parked at a

branch nearest to your present or proposed residence.

Interest rates

SBI EASY HOME LOAN (JULY 2010)(Base Rate =7.50% p.a.)

Interest rate for proposals sanctioned between 1stJuly

2010 and 30th September 2010.

Loan amount Maximum Rs.50 Lacs

Facility Type OD (MaxGain) or TL

Interest during first year 8% p.a.(Fixed)

2nd & 3rd year 9% p.a.(Fixed)

Floating interest rate after 3rd 1.75% above Base Rate, Currently effective

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year rate being 9.25% p.a.

Fixed interest rate after 3rd year 3.50% above the Base Rate prevailing at the time of

reset,with a reset frequency of 5 years.

SBI ADVANTAGE HOME LOAN (JULY 2010)

Interest rate for proposals sanctioned between

1st July

2010 and 30th September 2010.

Loan amount Above Rs.50 Lacs

Facility Type TL

Interest during first year 8% p.a.(Fixed)

2nd & 3rd year 9% p.a.(Fixed)

Floating interest rate after 3rdyear

2.25% above the Base Rate, Currentlyeffective rate being 9.75% p.a.

Fixed interest rate after 3rd year 3.50% above the Base Rate prevailing at thetime of reset, with a reset frequency of 5 years.

REPAYMENT

Repayment period:

Maximum 25 years (or) Up to the age of 70 years (the age by which the loan should be

fully repaid) of the borrower, whichever is early.

Moratorium period (Repayment holiday):

The moratorium period is included within the maximum repayment period.

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4.4 EDUCATION LOANA term loan granted to Indian Nationals for pursuing higher education in India or abroad whereadmission has been secured.Eligible

All courses having employment prospects are eligible.

Graduation courses/ Post graduation courses/ Professional courses Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

Fees payable to college/school/hostel Examination/Library/Laboratory fees Purchase of Books/Equipment/Instruments/Uniforms Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution

fees for the entire course) Travel Expenses/Passage money for studies abroad

Purchase of computers considered necessary for completion of course Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

For studies in , maximum Rs. 10 lacs Studies abroad, maximum Rs. 20 lacs

Interest Rates :

From 29.06.2009 (SBAR 11.75%)

SBI Student Loan Scheme

Loan Amount Rate of Interest

Loans upto Rs. 4.00 Lacs 0.50% below SBAR i.e. 11.25% p.a.

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Eligibility

Customers are eligible if you are a Salaried individual of good quality corporate, selfemployed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years

standing.

Salient Features

Loan Amount

Customers personal loan limit would be determined by your income and repaymentcapacity.

Minimum : Rs.24,000/- in metro and urban centersRs.10,000/- in rural/semi-urban centers

Maximum : 12 times Net Monthly Income for salaried individuals and pensioners subject

to a ceiling of Rs.10 lakhs in all centers

Documents RequiredImportant documents to be furnished while opening a Personal Loan Account:

For existing bank customersPassport size photograph

From salaried individualsLatest salary slip and Form 16

MarginWe do not insist on any margin amount.

Repayment

The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to,without attracting any prepayment penalty.

SecurityNIL

Processing Fee

Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in theindustry. Processing fees have to be paid up front. There are no hidden costs or other

administrative charges.

Interest rates

Base Rate 7.50 % w.e.f. 01.07.2010Other Loans

Type of Facility Rate of InterestClean Overdraft 8.25% above Base Rate, currently 15.75%

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p.a.Personal Loans Scheme (SBI Saral) 6.50% above Base Rate, currently 14.00%

p.a.SBI Loan to Pensioners 4.75% above Base Rate, currently 12.25%

p.a.Festival Loan Scheme 6.75% above Base Rate, currently 14.25%

p.a.Loan against Bank Time Deposits 1.00% over the rate paid on Relative timedeposit.

Xpress Credit

Type Facility Rate of InterestDemand Draft Check-off from Employer 5.00% above Base Rate Floating, currently

12.50% p.a.Overdraft Where salary A/c is with us 5.50% above Base Rate Floating, currently

13.00% p.a.

4.6 SBI VISHWA YATRA FOREIGN TRAVEL CARD

THE CARD:

Issued in association with VISA International.

Accepted at 1.40 Million VISA ATMs and at over 28 Million Merchant

Establishment(MEs) approximately, all over the world except in , and .

Available at all Branches authorized to sell Foreign currency / travelers

cheques

ELIGIBILITY

Any confide citizen of who plans to travel abroad except and .

Corporate for their employees whom they plan to send abroad for officialpurpose subject to completion of KYC norms.

Parents / sponsors of the students going abroad for higher studies, in thestudents name and can be subsequently reloaded up to the statutory ceiling

prescribed from time to time.

Foreign Nationals residing in subject to completion of KYC no.

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FEATURES:

Maximum amount of issue: US Dollars 10,000 or equivalent / or any higher

amount

as prescribed RBI/FEMA 1999 depending on the purpose of overseas visit

Competitive exchange rates. Reloadable any number of times from any branch authorized to issue FTC.

SMS message on your Mobile phone for each transaction

Opera table by 4 digit PIN at ATMs and by PIN/Signature at Merchant

Establishments. Free balance enquiry at SBI / VISA ATMs(at a charge)

Free balance enquiry and view / download details of transactions through

www.prepaidsbi.com Add-on cards not exceeding two in number to be used by the card holder in

case of loss/misplacement/defacement of the card

Balance information after each transaction through SMS

Free insurance cover up to Rs.2 lacs for 48-hour pre and post card lost liability

on non-PIN based transactions. (conditions apply)* A 24 x 7 call centre to provide information and hot-list (block) the card in case

of loss / misplacement.DOCUMENTS

Copies of Pass port

Form A2(if Foreign Currency to be bought is more than US$ 5000)

PAN or Form 60 in lieu thereof Proof of residence in case the address is different from that appearing on

passport

4.6 Customer advisory in SBI Bank

like other private banks SBI is also providing this services for their customers who ever ask foradvisory services. Since SBI has secured strong position in every segment of Indian territory,now they are planning to capture the High net worth customers.Keeping the increasing completion in view they are also coming in this field aggressively, andhave taken best steps to penetrate in the market.SBI Bank has been providing loans at lowerinterest rates then any other bank in India, and taking advantage of this services to increase thenumber of customers.SBI provides easy and effective NRI Services to regular visitors forcurrency conversion and money transfer to their required destination.

Since SBI Bank is a public sector bank and part of governing body they dont believe indiscriminating customers. Even though bank provides specific services to their high net worthindividual it considers normal walk-in customers equally important.

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In case of SBI Bank ,it has high number of customer from medium level families who are livingin limited income and do not think much about investing for their future needs but they havegood number of managed customers who come in the list of VISHESH customers.

Customer retention-

Scheme is to hold high net worth individual customers with the Bank , up gradation of

customers is being done from their existing position to the level of VISHESH customers.

These customers are called as High Net worth individuals. Initial requirements for becomingVishes customer is straight and clear, once customer has reached at this level then he can takeprivileges of advisory services available in the Bank, Relationship manager will help them inevery possible condition to advice them whether is NRI Services or any other services.

Generally this is the implementation ofstrategic approach to increase the number ofcustomers who can keep high amount with the customers and keep giving good business tocustomers.

4.8 Shareing of informaiton

Every time when SBI introduces new schemes in the market ,they inform about this to their

VISHESH customers and other customers as well. If customer is interested then he can take helpof relation ship managers in this matter. Information is send to customers by internet or they canuse physical medium like post and courier as well.

Circular and schemes are shared with every customer, this is very important to circulate suchinformation among the customers because they might have more then one bank account withother banks and other banks might be sending such circular among the customers. Such activityremind the customers about the schemes and services available in SBI Bank and prove as veryimportant tool for customer retention.

4.9 Types of customers in SBI Bank

1 Managed customers

2 None managed customers

Non-Managed Customers-

These are the customers who are having only normal accounts like walking customers, they arehigh in number as compare to Managed customers.

Managed customers-

Customers who are loyal to the bank and has been having good relationship with Bank areconsidered as managed customers, and called as VISHESH Customers.

Customers who have high net worth individually can become the managed customers; form thisthey need to follow the certain rules designed by SBI Bank. Entry level depends upon the

geographic area, this is very flexible in terms of Managed customers.For Example: If branch is near by any rich area then entry level for customers will be acc ording to the earning of population of the that area unlike other private sector banks where specificlimits need to crossed.

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If branch is at near to fisherman area(Semi urban/township area) then entry level for theVISHESH customers would be according to earning of fisherman.

This scheme encourages to every level of customer to keep high amount with the banks.

these are the customers who are taking advisory services of the Relationship Managers assignedto them.

They can visit to their assigned R.M. & he will get all things done for customer.

Vishesh customers are privileged customers, who have kept high amount with bank either interms of deposit or by any other specific services provided by bank.

For these customers bank makes every process veer easy and at comparative less charge.

AXIS BANK

5 Overview

Axis Bank was the first of the new private banks to have begun operations in 1994, after theGovernment of India allowed new private banks to be established. The Bank was promotedjointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), LifeInsurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) andother four PSU insurance companies, i.e. National Insurance Company Ltd., The New IndiaAssurance Company Ltd., The Oriental Insurance Company Ltd. and United India InsuranceCompany Ltd.

The Bank today is capitalized to the extent of Rs. 407.44 crores with the public holding (other

than promoters and GDRs) at 54.51%.The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. TheBank has a very wide network of more than 1042 branches (including 56 Service Branches/CPCsas on 30th June 2010). The Bank has a network of over 4474 ATMs (as on 30th June 2010)providing 24 hrs a day banking convenience to its customers. This is one of the largest ATMnetworks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting thebest industry practices internationally in order to achieve excellence.

5.1 Customer advisory services:

In axis bank customer advisory services is accessible for customer only after

joining Axis bank priority Banking. This provides specific services to

customers and increases the loyalty of the customers. Customer becomes

privilege customer at this level.

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Banking Privilegesat priority banking.

Priority Banking Lounge:As a Priority banking customer you will have access to an exclusive 'Priority BankingLounge' at branches. This will allow you to conduct your financial transactions in utmostcomfort and confidentiality through an exclusive Relationship Manager.

Dedicated Relationship Manager:You will enjoy access to a dedicated Relationship Manager who will be your one pointcontact at branch for all your banking transactions thus ensuring that you would neitherhave to move from one counter to the other nor stand in queues to await your turn.

Home Banking:Experience the convenience of our home banking facilities. Avail of free cash andcheque pick-up and delivery at your office or residence.

Exclusive Priority Banking International Debit card:This card allows you free access to all VISA ATMs in India. The card also comes withhigher ATM withdrawal limits, higher POS transaction limits at merchant

establishments, enhanced insurance cover and a host of special discounts and offers. You also get Preferential Interest Rates and lowered Processing Fees on select Retail

Loans.

Other Banking Privileges:Enjoy a host of banking privileges like free at-par cheques, demand drafts and payorders, free passbook updates and monthly statements.

You would also be entitled to two free minor accounts, one free outward remittance perquarter and free Mobile banking.

Investment Privileges

Avail of assistance in financial planning. Investment advice, market information reports,

and invitations to investor meets are offered complimentary to you. Lifestyle Privileges

However, it's not all about just financial services. We aim to provide a different Lifestyleexperience through special offers on premium brands, movie privileges, special events and lotsmore - especially for our Priority Banking customers

Gold Credit Card

As an added privilege, Priority Banking customers may also apply for a Gold Standard CreditCard and Gold Standard Secured Credit Card without any additional fee, subject to theapplicable terms and conditions.

Priority Banking customers would also be eligible for a 50% reduction on the Issuance Fee ofGold Plus Credit Card and Gold Plus Secured Credit Card. Rs. 500 will be charged as the annualmaintenance charge for Priority Banking customers, subject to the applicable terms andconditions.

Eligibility Criteria

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You can sign up for Priority Banking service by agreeing to any one of the following criteria

Average quarterly balance (AQB) of Rs. 1 Lakh in your savings account ( thisrequirement is Rs. 75,000 if in case you have a salary account with Axis Bank)

Average quarterly balance of Rs. 5 lakhs in combination of your savings and termdeposits (Minimum AQB of Rs. 50,000 in the savings account)

Minimum Average Quarterly relationship (SB+TD) of Rs. 10 lakhs across members ofthe same family - Subject to a minimum average SB Balance of Rs. 80,000 beingmaintained in the SB accounts of the participating members and the remaining amount inTerm Deposits

Minimum average quarterly relationship of Rs. 5 Lakhs in Encash 24 (Flexi Deposits)account.

5.2 Types of customers

Managed Non managed customers

Non managed customers:These are the customer who have normal banking account with bank and do simple bankingtransaction with bank.

Managed customers:

These customer are called priority customers and they are privileged customers of the bank,customer will be served at first priority that is the use of making this program.

For managed customers, bank assigns one Dedicated relationship manager for mass and massaffluent customers. As the customer reaches at the higher level weld advisors will be assign tohim to look after all the banking work.

These are-

Mass Mass affluent Affluent

Facility and services provided by bank to these customers

They will get the loan at reduced interest rates from the prevalent market rates, interestrates will be reduced from .25 % to .50 %. This interest rates are providing an edge andcustomer is taking services from them.

Mass customer-

Minimum requirement to become mass customer is customer should maintain 1 lakh inhis any current, saving accounts.

Services for the mass customers

Priority banking international debit card Free usage at any visa ATM in India

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AMBIENCE

SERVICES

Findings

HDFC BANK

Bank has good name in the market and has become the reliable organization for

investments.

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HDFC BANK SBI BANK AXIS BANK

LOAN

SERVICES

GOOD BEST BETTER


LOAN

SERVICES

GOOD AVERAGE BEST


LOAN

SERVICES

GOOD AVERAGE BEST


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approach. Banking industry is very sensitive industry, where a

bank can easily lose its customer; This has become important tool

to increase the customer loyalty and customer retention.

Different banks are implementing these approach at their

required level. But condition changes as geography changes andone who can change itself according to the conditions becomes

leader in the market. HDFC Bank is one of the strong player in the

Private sector bank has been running its banking operations with

pride of serving its customers with best services available. HDFC

Bank has won the customer trust of being a reliable destination of

investment and banking operations. Bank is doing very well with

its retail customers and managed customers as well, it is offering

advisory services to managed customers by dividing them in tothree groups. Each group is handled by the team Relationship

managers.

State Bank of India is famous for and taking advantages in

Geography (semi urban and rural areas) bank is very strong at its

retail banking and loan services and gradually taking up this

concept as strategic approach to without any discrimination in

between customers.

Axis bank is a good name in banking industry , it is upgrading its

infrastructure and has been using customer advisory since long

time and has been providing services to the customers. It has

segmented its customers and running advisory services with the

name of Priority banking. It is divided in to three sub group of

high net worth customers and serves them with its best services

available. It is implementing combination of low interest rates,

good infrastructure and advisory services.

This strategy of providing advisory services to the

customers has proved its effectiveness in terms of profitability

and customer retention. Banks which are having this service has

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shown good sign of growth and opportunities of bringing in other

financial products in the bank premises.

SUGGESTIONS

For the long term good services alone are not sufficient tool we should over some unique

strategic approach to take leading position :

HDFC BANK should use its resources to increase number of customers in its territory,

because this is main source of revenue.

Bank employee should call back to every customers who has shown little interest in

investment with bank otherwise other customer can steal our customers.

Since private sector bank is very strong in term of providing loan services and using it as

main tool to increase the customers, we should convince customer to for loan services aswe are providing loan on homes and looking after all other procedure related with buying

home.

We should convince customer to open one saving account with us and make them

believe that this is just like saving & will be having better facilities than any other public

sector bank.( This is the perception of a common man who thinks this investment of

10000 Rs is going to stuck in the bank.)

Since selected private sector bank is focusing more on Current accounts then we should

take up this opportunity to get good grip over other accounts along with current accounts.

Bank employee should invest more time with customer to make them feel special and

gradually make him agree for investment in bank. Bank should persuade that customer who has kept big amount with us and not investing

by investing their money in good products bank can generate profit.

Bank should organize awareness campaign targeting to specific customers who canbecome potential customer. To make them aware about the benefits of investing theirmoney in good financial products.( to change their perception over the investments,Instead of keeping money with them customer should invest in financial products so thatcan beat the effect of inflation)

Bank should need to focus on customer targeting.

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Annexure

Questions

1. What are the offers you can give to your customers according to the level of

customer?

2. How do you use monthly reports to advices the investment wanted by the

customer?

3. How do you pith products to the customers?

4. How products/schemes in your Bank are different then other banks?

5. What do you suggest to add on the advisory report?

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