Professional Documents
Culture Documents
CHAPTER 1
INTRODUCTION
1.1) INDUSTRY PROFILE
1.2) COMPANY PROFILE
1.3) PRODUCT PROFILE
1.4] OPERATIONAL CONCEPTS
CHAPTER 2
CHAPTER 3
DESIGN OF STUDY
3.1] NEED OF THE STUDY
3.2) STATEMENT OF PROBLEM
3.3) OBJECTIVE OF STUDY
3.4] METHODOLOGY OF THE RESEARCH
3.5) SCOPE OF THE STUDY
3.6) LIMITATION OF STUDY
CHAPTER 4
CHAPTER 5
: RESEARCH FINDINGS
CHAPTER 6
LIST OF TABLES
SERIAL
NO:
5.1A
CONTENTS
Age of Respondents age
47
5.1B
Gender of Respondents
49
5.1C
Occupation Respondents
51
5.1D
53
5.2
55
5.3
57
5.4
59
5.5
5.6
61
63
5.7
65
5.8
67
5.9
69
5.10
71
5.11
73
5.12
75
5.13
77
LIST OF CHARTS
PAGE NO:
SERIAL
NO:
5.1A.1
CONTENTS
PAGE NO:
47
5.1B.1
Gender of Respondents
49
5.1C.1
Occupation Respondents
51
5.1D.1
53
5.2.1
55
5.3.1
57
5.4.1
59
5.5.1
61
5.6.1
63
5.7.1
65
5.8.1
67
5.9.1
69
5.10.1
71
5.11.1
73
5.12.1
75
5.13.1
77
EXECUTIVESUMMARY
EXECUTIVE SUMMARY
The private and MNC banks in India is today paving through one of its rough times. Though
it has a tremendous growth potential, the competition and related factors have made the
scenario worst. This has really compelled the banking industry to come out with improved
performance with their customers. ABN AMRO Bank as usual remains vibrant by attracting
all the customers.
This part of the study covers the industry profile, company profile, McKinneys 7S
Evaluation, SWOT Analysis, Product profile, Design of the Study, Scope of the Study,
Definition of the Concepts, Methodology of Research, Sampling Design apart from;
STATEMENT OF THE PROBLEM
CUSTOMER AWARNESS OF ABN AMRO BANKS HOME LOAN SERVICES.
To increase the market share Home Loan and the customer satisfaction. And also expand the
awareness and reach of ABN AMRO Bank Home loan products to prospective people.
SUMMARY OF FINDINGS
This part of the report covers the summary of findings drawn from the entire study and the
finding of the study.
CHAPTER- 1
INTRODUCTION
1.1. INDUSTRY PROFILE
BANKING SCENARIO IN INDIA, POST 90S
Banks in India have traditionally offered mass banking products. Most common deposit
products being Savings Bank, Current Account, Term deposit Account and lending products
being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have
had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend
amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the
latter.
PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR
itself was, more often than not, dictated by RBI. Further, remittance products were limited to
issuance of Drafts, Telegraphic Transfers, Bankers Cheque and Internal Transfer of funds. In
view of several developments in the 1990s, the entire banking products structure has
undergone a major change. As part of the economic reforms, banking industry has been
deregulated and made competitive. New players have added to the competition. IT
revolution has made it possible to provide ease and flexibility in operations to customers.
Rapid strides in information technology have, in fact, redefined the role and structure of
banking in India. Further, due to exposure to global trends after Information explosion led
by Internet, customers - both Individuals and Corporate - are now demanding better services
with more products from their banks. Financial market has turned into a buyer's market.
Banks are also changing with time and are trying to become one-stop financial
supermarkets. Market focus is shifting from mass banking products to class banking with
introduction of value added and customized products.
The bank of the future has to be essentially a marketing organization that also sells banking
products. New distribution channels are being used; more & more banks are outsourcing
services like disbursement and servicing of consumer loans, Credit card
business. Direct Selling Agents (DSAs) of various Banks go out and sell their products.
They make house calls to get the application form filled in properly and also take your
passport-sized photo. Home banking has already become common, where you can order a
draft or cash over phone/internet and have it delivered home. ICICI bank was the first
among the new private banks to launch its net banking service, called Infinity. It allows the
user to access account information over a secure banking scenario in India, post 90s.
Banks in India have traditionally offered mass banking products. Most common deposit
products being Savings Bank, Current Account, Term deposit Account and lending products
being Cash Credit and Term Loans. Due to Revenuer durable loans, education loans, loans
against share, finance against gold.
AN OVERVIEW OF HOUSING FINANCE INDUSTRY
Gone are the days of saying, Fools build house and the wise live in them. Owning a house
has always been a cherished dream and considered to be a priced possession that lends
identity, social security and emotional satisfaction to the owner for the rest of his life. Earlier
days acquiring a property meant spending of a major portion of the lifes savings and wait
till the last fag of life.
Ushering in housing loan has brought radical change and had made dream come true for
millions in owning a house. Housing finance industry has seen a phenomenal growth in past
few years and is playing a key role in the Indian economy these days. There is a huge influx
of people going for purchase of readymade flats/ construction of new houses in urban areas.
There is a huge market in housing sector. A fleet of housing finance companies of all sizes
and nature, government organizations, insurance companies, banks and co-operatives has
entered into housing finance business. Due to continuous recession in the country for few
years, the industrial loans are not picking up, living the banks with huge unutilized liquid
cash. This has titled nationalized and private banks to enter into housing loan business and
decontrol
of the housing sector has also motivated many banks and housing finance companies to enter
into housing finance arena.
The housing finance is maintaining strong growth trend estimated around 30% per year for
the last few years. Today there are approximately 320 companies in the business of housing
finance, but among this 26 companies control 95% of the total volume of business.
The factors that have propelled the growth in housing sector include a downslide in property
prices, lowering of interest rates on housing loan and increase income of the consumers, etc.
The robust growth in the demand of housing finance in the recent year has been remarkable.
Lower interest rates, tax incentive for home ownership, massive competition by providers of
housing finance has helped consumers considerably.
The industry is witnessing a boom. Currently boosted by the generous budget sops and rock
bottom real estate prices. The demand is a result of genuine individual needs for housing.
The prospect of the industry would be further strengthened on the amendments to the rent
control acts and repealing of the controversial urban land ceiling act. Thus the housing
finance industry is on solid ground and has interesting prospective ahead. As for the small
players, they will have to take the harsh decision to either exists in the industry or merge
with bigger entities.
Due to industrial recessionary trend housing finance sector has seen the entry of many
nationalized and private sector banks, insurance companies, government bodies and housing
finance companies. Major players in the housing finance industry are HDFC, SBI housing
finance, LIC housing finance, ICICI, HSBC, Citibank, etc. The housing finance industry is
witnessing a clash between major players. Undercutting in the interest rates, reducing or
eliminating processing/ administrative charges, fast loan processing, extra sops, etc are being
used as tools to lay the major players to gain market share in home loans.
Housing finance continues to register strong growth. Greater affordability on account of
lower interest rates and higher disposable income, stable property prices and increased
urbanization have contributed to the sustained growth of the sector. Fiscal incentives for
housing have also helped the sector.
RECENT TRENDS IN FINANCIAL SECTOR AND BANKING
Investment in India - Banking - Financial Sector & Banking
Continuing reforms in the banking sector were aimed at improving the efficiency and
financial strength of commercial banks. Aggregate deposits of the scheduled commercial
banks stood at dols 1.48 billion in IFY1997-98, an increase of 15.1 percent.
AUTONOMY PACKAGE
In November 1997, the Indian government announced an autonomy package for financially
stronger public sector banks to help them compete more efficiently in a liberalized
environment and to accelerate credit creation. Eleven banks qualified for the autonomy
package.
ICICI
Canara Bank
HDFC ect.
Foreign Banks:
CITI Bank
importance to our long-term success. The Bank's corporate values play an integral role in the
fulfillment of our mission."
HISTORY:
On 29 March 1824 King Willem-I issued a royal decree creating the Nederlandsche HandelMaatschappij with the aim of reviving trade between the Netherlands and the Dutch East
Indies. In 1964, NHM merged with De Twentsche Bank to form Algemene Bank Nederland
(ABN), while Amsterdamsche Bank and Rotterdamsche Bank joined to become
Amsterdam-Rotterdam (Amro) Bank. In 1991, these two banks merged as ABN AMRO
Bank. Today, ABN AMRO Bank has a powerful presence in world markets, building on a
tradition of stimulating international trade.
NETWORK:
As an international bank, they have more than 3,500 branches in over 70 nations across the
globe. ABN AMRO, the Network Bank caters to everyones needs both at home and abroad.
CORPORATE VALUES
ABN AMROs Corporate Values provide the foundation for the bank's newly introduced
Business Principles. The bank formulated these Corporate Values in 1997.
INTEGRITY:
Above all, they are committed to integrity in all that they do, always, everywhere.
TEAMWORK:
Teamwork is the essence of their ability to succeed as a trusted preferred supplier of
financial solutions to their clients. Their overriding loyalty is to the good of the whole
organization, requiring them all to learn from each other and to share their skills and
resources across organizational boundaries for their clients' benefit.
RESPECT:
We respect every individual. We draw strength from equal opportunity and diversity, at the
same time supporting personal growth and development. We value and we all benefit from
the entrepreneurial spirit of each individual.
PROFESSIONALISM:
To be of service to their clients they are committed to the highest standards of
professionalism, pursuing innovation, deploying imagination, being open to new ideas and
acting decisively and consistently. They are determined to deliver outstanding quality so that
their relationships with their clients are long lasting and close.
ABN AMRO Bank has launched its Private Banking Services in India offering a
comprehensive range of high quality Portfolio Advisory Services along with a
comprehensive transaction execution platform, complemented by personalized Banking and
custodial services.
THREE GLOBAL STRATEGIC BUSINESS UNITS (SBUS):
III. WHOLESALE CLIENTS (WCS) - for major international corporations and institutions.
This is one of the largest Europe-based wholesale banking businesses with around 10,000
clients, 20,000 staff and operations in over 40 countries. With a global network, specialists
in all major industry sectors and a broad range of products, ABN AMRO provides local and
global expertise for complex cross-border deals.
ABN AMRO Bank (India) has an 81-year long experience of the Indian business scenario.
Traditionally known as a strong "diamond-financing bank", it has turned into a bank
providing a comprehensive range of services with a difference.
ABN AMRO (India) has had a long-standing presence in India since 1920, in Kolkata and
Mumbai. At that time, the bank mainly worked for diamond clients. The bank took off in a
big way in 1991, after the merger of ABN and AMRO worldwide. The Delhi branch was
functional in the very same year. ABN AMRO was launched in other cities throughout India
between 1994 and 1999. They were Chennai in 1994, Pune in 1997 and Baroda in 1999,
while the Hyderabad and Bangalore branches were opened in 2001.
The bank acquired the retail business of the Bank of America in 1999. The year 2002 saw
the opening of the Noida office. AA Securities [I] Pvt. Ltd. formed in September 1998.
ABN AMROs ACHIEVEMENTS
The Banker Top Foreign Bank in India: Economic Times - CMIE survey 2002.
Corporate Finance India: Ranked Second in M&A in the Investment Banking arena
in 2001 - Economic Times.
ABN AMRO Securities India: Best Foreign Bond House; No 1 Arranger in Private
Sector: Euro money 2000.
Top Bank on "Management Quality" parameter: Business India 'Best Banks Survey
2000'.
7th Most Admired Commercial Bank in the World: Fortune Magazine, 2000.
Credit Card
Deposit Products
NRI Services
Investment Services
Services
ATM Services
24 Hour Bank by Phone
Bill Payment
Doorstep Banking
Depository Services
National Access
365 Days Banking
Extended Banking Hours
PRODUCT-SERVICE PROFILE:
ABN AMRO Bank has a variety of products to offer. It has been rated as the #1 Bank in
India KPMG survey 2002, and also has been rated as the best service provider Bank,
recently. ABN AMRO Bank, Bangalore Branch mainly deals with consumer banking or
called Retail Banking.
Products offered by ABN AMRO Bank:
Deposit Products: There are two categories, namely, flex account and Shakti account.
Flex Account: A unique savings account that not only gives more access and convenience
but also enhances the earnings in various ways. The minimum initial deposit is Rs 10000/and an average daily balance of Rs 10000/- should be maintained.
Shakti Account: A saving account devised especially for the female population to give
power and flexibility to Bank at ones convenience. The minimum initial deposit is Rs5000/the first applicant being a woman, an average daily balance of Rs5000/-ought to be
maintained. It is in the nature of a joint account.
Bank Fixed Deposit: Deposits for different period at an attractive rate of interest.
Value+ current Account: An innovative and money saving current account where one can
save up to Rs90000/- annually throughout. It allows choosing the balance one wishes to keep
with the Bank.
Value+ silver;
Value+ silver 20
Value+ silver 40
Value+ Gold;
Value+ Gold 100
Value+ textile gold account: An account for companies availing a variety of services. The
textile account requires to maintained minimum of 1 lack as an average of monthly balance.
Loan Products: Loan against securities, Home Loan, Car Loan, etc.
Cards Products: Freedom credit card, smart gold card, Health Shield quality insurance.
Investment Products: This comprises of insurance products (tie-up with AVIVA Life
Insurance) and mutual funds.
SERVICES OFFERED BY ABN AMRO BANK:
International Debit Card: Free for the first year, easiest way to access to saving account.
Wide ATM access: Free access to all UTI ATMs in India as the Bank is linked with UTI.
Also one can access the Maestro or circus Network
Free doorstep banking: Free cash and draft delivery one cheque or documents pick-up per
day.
Net Banking: Where one can open a fixed deposit, make a draft, pay bill or check account
balance, stop payment on cheque, transfer funds between own or other account with the
bank, request for a new cheque book or for cash deliveries, receive alerts though email and
SMS, communicate with the bank through personal mail box.
24hours Bank by Phone: For assistance on demand draft/cash delivery. Courier pickups,
opening a fixed Deposit Account, ect;
Utility Payments: Where one can pay electricity and telephone bills by ATMs or Bank by
Phone facility provided by the bank.
Royalties: The Bank pays for actually using the account. One can earn valuable points on
the Debit Card.
Other services: Free Credit Card for first year with add-on Card also free for the first
year,365 Banking- 10Am to 7Pm,Free Electronic funds are Transfer, Free pay orders,
Attractive rates on Foreign Exchange and Trade Services and many more services.
Bank statements for the last six months. Salary account for employed and main account for
self employed.
Processing Fee cheque (Rs5, 600)
Income documents are as follows:
Income Tax returns for the last 3 years duly certified by a charted accountant.
Balance sheets and Profits & Loss Account of the business / profession and individuals for
the last 3 years duly certified by a charted accountant.
Memorandum / Articles of Association of company, partnership deed for firms and profile
of your company / firm giving details of organizational structure, clients, suppliers etc.
What are the different types of loans available In ABNAMRO?
ABN AMRO offers other Home Loan products that can provide additional benefits to
customers Home.
ABN AMRO Renovation Loan - After securing customers home, customer may want to
transform it into customers very own abode. Maybe customers will like kitchen and
bathrooms to have designer fixtures or living room to be painted in vibrant colors.
Customers can now actualize dream by taking an ABN AMRO Renovation Loan.
Customers can take a Renovation Loan up to 100% of the cost estimate subject to 30% of
the market value of the property.
ABN AMRO Home Extension Loan - customers have secured a Home and now
customers family needs more space for living, customers growing children want separate
rooms. Customer and customers family can realize your dream by taking an ABN AMRO
Home Extension Loan. Customer can take up to 85% of the cost estimate subject to 80% of
the market value of the property.
ABN AMRO Top-up Loan - After taking a ABN AMRO Home Loan, customers can
further cement relationship by taking a top-up loan for other financial needs like marriage,
education etc, against the same property.
What's more, if customers are currently having an existing mortgage loan with another
financier, speak to our loan counselors at Bank Branches to find how clients much savings
customer
can
enjoy
by
switching
over
to
ABN
AMRO
Home
Loan.
ABN AMRO Offers Loan against residential properties Loan can be used for any legal
purposes
When
customer
can
apply
for
home
loan
from
ABN
AMRO?
Customer can get a home loan sanctioned from ABN AMRO if customer have just decided
to acquire a Home in the near future, i.e. even before selecting a home
HPLR
7.25%p.a.
For Unverified Income Home Loan Scheme only Floating Rate of Interest Scheme is offered
and it is @ HPLR+100 basis points = 8.25% p.a.
For Home Equity Loan only Floating Rate of Interest Scheme is offered and it is @
HPLR+200 Basis points = 9.25% p.a. The rate is linked to ABN AMRO's Home Loan Prime
Lending Rate (HPLR). The reset dates are - 1st of January and 1st of July of each Calendar
Year.
What tax benefits do customers enjoy on housing loans?
Tax benefits are available on the principal and interest components of a housing loan as per
the Income Tax Act, 1961. As the benefits could vary each year, please check out the current
benefits available.
Who can be co-applicants?
Proposed owners of the prospective home will necessarily be co-applicants. However, all coapplicants need not be co-owners.
Customers can buy the property in my minor child's name and repay the loan as a
guardian?
Customers should not do so as the legal complications involved in transacting such
properties is very cumbersome. Banks or housing finance company will not extend a home
loan facility on such properties.
Will ABN AMRO help customers protect life during the repayment term of the loan?
ABN AMRO will offer Loan Protection Assurance, a comprehensive reducing straight term
assurance at easy monthly payments, that protects customers family from the burden of
loan repayment should anything unforeseen happens to customer.
Customers can repay loan ahead of schedule?
Yes, customers have the option to prepay the loan ahead of schedule. No prepayment
charges are applicable for part prepayment up to 25% of the annual opening balance. Please
see "Other Charges"
How do customer get loan sanctioned?
Customers are welcome to visit our nearest Branch or just call us and our counselors will
assist you through the process. Bank can also visit you at residence or office
How long will it take for customer loan to be processed?
ABN AMRO Bank shall use its best endeavor to inform customers about the decision
status of customers loan application, usually within 4 days from the date all documents/
information, as required by the Bank, from time to time, is furnished by customers to the
Bank.
What are the current applicable rates of interest & other charges?
New Pricing Grid
HPLR: 7.25 %
Home Loan Rates of Interests:
Scheme:
2 Yrs. Super Saver
7.50 % for 1st yr. & 7.75% for 2nd yr. There
after the then Prevailing Floating Rate @
HPLR+50 Basis Points.
7.75% for 1st 3 yrs; 8.00% for 4th & 5th yrs.
There after the then Prevailing Floating Rate
@ HPLR+50 Basis Points.
MARKETING RESEARCH
Marketing research is the function, which links the consumer, customer and public to the
marketer through information used to identify & to define the market opportunities and
problems; generate refine and evaluate marketing actions; monitor marketing performance;
and improve understanding of market as a process.
MARKETING
Marketing is a societal process by which individuals and groups obtain what they need and
want through creating, offering and freely exchanging products and services of value with
others.
STRATEGY
Strategy is a set of objectives policies and rules that guides over time the firms marketing
efforts. Marketing Strategy is basically concerned with the elements of the marketing
planning process.
CUSTOMER SATISFACTION
Data collection and potentially strengthening the relationship between the customers and the
company
MOTIVATION
Motivation is the driving force with in individuals that impulses them to action. This driving
force is produced by state of tension, which exists as a result of an unfulfilled need
PERCEPTION
Perception is defined as the process by which an individual selects, organizes and interprets
stimuli into a meaningful and coherent picture of the world.
CHAPTER- 2
McKINSEY7sMODEL
ANDSWOTANALYSIS
DESCRIPTION
The Hard Ss
Strategy
Structure
Systems
The Soft Ss
Style / Culture
Staff
Skills
STRATEGY
Strategy sets the vision, mission, objectives, major action plans and policies lf the
organization. These set out the picture of the organization in the future typically spelling out
the overall corporate strategy, the SBU (strategic business unit) strategy and the functional
strategies.
It can also be defined as the choice of direction and action that the company adopts to
achieve its objectives in a competitive situation. It is the first step that a company has to take
in leading its organization to the ladder of success. The competitive advantage for the
company can be achieved by keeping in mind the following points.
What are the companys sources of sustainable competitive advantage (e.g. penetration new
markets, new product development, and improving customer service?)
What are the companys key strategic priorities (e.g. penetrating new markets, new product
development, and improving customer service?)
ABN AMRO is an international bank with European roots and a clear focus on consumer
and commercial banking, strongly supported by an international wholesale business. Our
business
mix
gives
us
competitive
edge
in
our
chosen
markets.
ABN AMRO strategy is built on leveraging our advantages as a Group to create the best
value for and with our clients. It is summarized in five points.
Creating value for our clients by offering high-quality financial solutions that best meet their
current needs and long-term goals.
FOCUSING ON:
Consumer and commercial clients in our home markets of the Netherlands, the US Midwest,
Brazil and in selected growth markets around the world. Selected wholesale clients with an
emphasis on Europe, and financial institutions
PRIVATE CLIENTS
Leveraging our advantages in products and people to benefit all our clients, sharing expertise
and operational excellence across the Group.
Creating 'fuel for growth' by allocating capital and talent according to the principles of
Managing for Value, our value-based management model.
ABN AMRO aims for sustainable growth that will benefit all our stakeholders: our clients,
our shareholders, our employees, and society at large. The ABN AMRO Corporate Values
and Business principles provide the framework operations
We are active in three principal customer segments: Consumer and Commercial Clients
(C&CC), Wholesale Clients (WCS) and Private Clients and Asset Management (PC&AM)
commercial segment. These two segments will drive growth by working across our Business
Units.
Unique delivery
The ABN AMRO Group is well positioned to capitalize on our focus on the mid-market
segment. Success requires a combination of local and international capabilities:
Local relationships
An extensive and competitive product suite
Efficient delivery
Sector knowledge (in the case of corporations)
International network
ABN AMRO is one of the few banks in the world that can deliver on all
Of these, in many cases, uniquely.
.
STRATEGIES ADOPTED AT ABN AMRO BANK:
Strategies adopted at ABN AMRO Bank can be understood under its functions:CONSUMER BANKING:
Tap savings potential of affluent urban class.
Emphasize control and convenience
Offer a slew of new products and innovations
CORPORATE BANKING:
Leverage its flat structure to facilitate information flow and
FEE-BASED BANKING:
because motivation and morale is low, decisions are delayed and of poor quality, the
expenses rises, orders are lost due to competition, lack of confidence. Structure of any
organization has to answer the following question
COUNTRY HEAD
CORPORATE
BANK HEAD
RETAIL BANK
HEAD
HEAD SALES
MANAGER
ASSISTANT SALES
REGIONAL
MANAGER
HEAD
LIABILITY SALES
HEAD
ASSET
SALES HEAD
SALES MANAGER
TEAM LEADER
Personnel Financial
Executives (PFE)
Personnel Financial
Telemarketing
Executives (TME)
SYSTEMS:
System in this framework stands for the rules and regulation, procedures and practices that
must be allowed to carry out the tasks in the organization. A good system adds to the
efficient in effective working of the entrepreneur.
How do managers spend their time-in formal meeting, informal conversations, in the field,
with customers, etc.?
SKILLS:
Skills include the distinctive competencies that reside in the organization. These can be
distinctive competencies of people, management practices, systems and/or technology. What
business activities is the company distinctively good at performing? What new capabilities
do the organization?
Needs to develop, which one does it need to unlearn to compete in the future. This can be
learning throughSOWT analysis.
SHARED VALUES:
It refers t the core or fundamental values that are widely shared in the organization and serve
as guiding principles that are important. These values have great meaning because they
focus attention and provide a broader sense of purpose. They also give a strong basis of
stability to the organization in a rapidly changing environment by providing a basic meaning
to people working in the organization.
Do people have a shared understanding of why a company exists?
Do people have a shared understanding of the vision of the company?
How do people describe the ways in which the company is distinctive? (e.g.; focus on
quality, emphasis on people).
ABN AMRO Bank is a client/investor-oriented organization that has imbibed this quality
among all its members and employees. The whole unit works today towards the growth and
success of ABN AMRO Bank.
STRENGTHS:
What Company does exceptionally well?
What advantages company has?
What valuable assets and resources company has?
What do members or customers identify as company strengths?
COMPANY STRENGTHS:
WEAKNESSES:
What could company do better?
What is company criticized for or receive complains about?
What is company vulnerable?
COMPANY WEAKNESSES:
Less branches.
Reach is low.
Awareness is low-in India it still has to gain tap new markets popularity.
OPPORTUNITY:
What opportunities does company know about?
Are there emerging trends on which company can capitalize?
COMPANY OPPORTUNITY:
THREATS:
Are any companys weaknesses likely to make it critically vulnerable?
What external roadblocks exist that block companys progress?
Are the competitors are quasi- competitors doing anything different?
Is the significant change coming in companys member sector?
Is technology dramatically changing the sector and services to it?
Are economic conditions affecting companys financial viability?
COMPANY THREATS:
May not be opted by many middle class consumers as it is more elite class oriented,
thus lose on market size.
SUGGESTION
The company should try to focus on customer awareness in order to enable market
popularity.
Bank has to win the trust of the people as most of the customer s misunderstand and
distrust them.
Bank should mould their approach towards the Indian customers needs by which
they can overcome competition from the other banks.
CHAPTER- 3
DESIGNOFTHESTUDY
Secondary Objectives:
1. To compare the services of ABN AMRO bank housing finance with other private &
Multi-National Banks in Bangalore.
2. To study and analyze the promotional activities of ABN AMRO bank with other banks.
3. To know the Housing Finance market share of different banks in the field.
4. To suggest remedial measures to increase the Housing Finance market share and
performance in serving the housing finance customers.
5. To know the level of satisfaction of customers with housing finance.
PRIMARY DATA
SECONDARY DATA
Direct interaction.
Observations.
Brushers etc.
collection of the original data. Secondary data may either be published data or unpublished
data.
While taking into consideration the secondary data the researcher must see that they possess
the following characteristics:
Reliability of data
Suitability of data
Adequacy of data
Here in this research, I collected the secondary data from the Books, journals,
Internet etc...
Internal Secondary Data:
Information collected from ABNs website and other Websites like,
www.banking/services.com
www.abnamro.com
www.international/banking.com
rankings of banks is
collected from;
Magazines
Journals, etc.
- Business Today,
SAMPLE DESIGN:
To achieve the objective of the study Descriptive research is used.
Meaning of Descriptive Research:
Descriptive Research includes surveys and fact finding enquires of different kinds. The
major purpose of Descriptive Research
present. The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. In social science and
business research we quite often use the term expose factor research for Descriptive
Research studies.
Most Ex post facto research projects are used for Descriptive studies in which the researcher
seeks to measure such times as, example, performance of the people. Ex post facto studies
also include attempts by Researchers to discover causes even when they cannot control the
variables. The method of Research utilized in Descriptive Research is all kind of surveys,
including comparative and correlation methods.
a) Sampling technique: Non-probability convenient technique was used Samples
were taken from the departments.
b) Sample size: The sample size was taken to be100 in total.
c) Software used: MS- excel and MS- word has only been used for the purpose of
analyzing the data.
The sample size for the study was 100 respondents which is small
Since the study involved random sampling there could be a non-sampling error in
selection of respondents.
Difficulty in reaching a large number of areas and high traveling was also a
hindrance to collect sufficient data.
Respondents bias may be present due to lot of open- ended questions in the
questionnaire.
CHAPTER- 4
ANALYSISAND
INTERPRETATION
STATUS OF RESPONDENTS:
TABLE 5.1A
AGE OF RESPONDENTS:
NO.OF
AGE
RESPONDENTS
21
47
32
100
20-30
30-40
ABOVE-30
TOTAL
PERCENTAGE (%)
21%
47%
32%
100%
The analyzed data is presented in the following figure 5.1A.1 for better appreciation
Source: Primary data
FIGURE 5.1A.1
AGE OF RESPODENTS
21%
32%
47%
20-30
30-40
ABOVE-30
Interpretation
From the above table it is found that, out of total respondents 47% are in age group of
30-40 .it is followed by age group above 40, with a total of 32%, while the age group 20-30
comprises a mere 21%.
Hence it is found that most of the respondents are in middle age group. So the Bank can
focus on middle aged group, and they can improve their Home Loan market share.
GENDER
PERCENTAGE (%)
MALE
RESPONDENTS
85
FEMALE
15
15
TOTAL
100
100%
85
Gender of Respondents
15%
85%
MALE
FEMALE
Interpretation
From the above table it is found that out of total respondents 85% are male and 15% are
female.
It is found that the majority of the respondents taken for the study are males. So the bank can
focus on males compared to females.
RESPONDENTS OCCUPATION
TABLE 5.1C
RESPONDENTS OCCUPATION
OCCUPATION
NO.OF
PERCENTAGE (%)
RESPONDENTS
SALARIED
23
23%
SELF EMPLOYED
9%
PROFFESSIONAL
30
30%
BUSINESS PERSON
35
35%
OTHERS
3%
TOTAL
100
100%
Occupation of Respondents
3%
23%
35%
9%
30%
salaried
self employed
professional
bussinessperson
others
Interpretation
From the above table it is found that out of total respondents 35% are business persones,30%
are professionals, salaried are 23%,self employed 9% and others are
Only 3%.
It is found that majority of respondents are business persons, followed by professionals.
Because they have the potential to repay the amount whatever they have taken out their
income.
NO.OF
INCOME
1000-10000
10000-20000
20000-30000
Above -30000
TOTAL
RESPONDENTS
15
24
35
26
100
PERCENTAGE(%)
15%
24%
35%
26%
100%
MONTHLY INCOME OF
RESPONDENTS
15%
26%
24%
35%
1000-10000
10000-20000
20000-30000
Above -30000
Interpretation
From the above table it is found that out of total respondents 35% are in the earning level of
20000-30000.26% re in the income level of above 30000.
Inference
Hence it is seen that most of the respondents of the survey had a good income level that is
middle income and higher income group. So bank needs to concentrate on these groups to
capture the market share.
RESPONDENTSCURRENT BANKERS
TABLE 5.2
CURRENT BANKERS
NO.OF
BANK
RESPONDENTS
37
28
17
07
11
100
ICICI
SBI
ABN AMRO
CITI BANK
OTHERS
TOTAL
PERCENTAGE (%)
37%
28%
17%
07%
11%
100%
Figure 5.2.1
11%
7%
37%
17%
28%
ICICI
SBI
ABN AMRO
CITI BANK
OTHERS
Interpretation
From the above table it is found that out of the total respondents 37%are in ICICI, Followed
by SBI 28%, ABNAMRO 17%, Other Banks 11% and CITI BANK 07%.
Inference
Hence it can be inferred that majority of respondents had accounts in Indian origin banks
like ICICI and SBI which was in existence for a long period, rather than foreign banks. So
ABN AMRO has to improve the services to catch the market share.
PERCEPTION
OK
SATISFACTORY
VERYGOOD
EXECELENT
TOTAL
NO.OF
RESPONDENTS
30
42
22
06
100
PERCENTAGE (%)
30
42
22
06
100%
6%
30%
22%
42%
OK
SATISFACTORY
VERYGOOD
EXECELENT
Interpretation
From the above table it is found that out of the total respondents 42% are satisfy with their
bank.30% are normal opinion about the banks,22% are very good opinion about there banks,
and 06% are excellent opinion about their bank.
Inference
Hence it is seen that most of the respondents are satisfied with their banks and they are
average in opinion on their banks. So ABN AMRO Bank has to enhance their services to
attract more customers and get established.
TABLE 5.4
RETURN ON INVESTMENT
NO.OF
NATURE
VERY COPETETIVE
AS PER THE MARKET
VERY HIGH
TOTAL
RESPONDENTS
37
52
11
100
PERCENTAGE (%
37%
52%
11%
100%
11%
37%
52%
VERY COPETETIVE
VERY HIGH
Interpretation
From the above table it is found that out of the total respondents 52% of customers are
holding in their hand ,they giving return on investment as per the market.37% of the
customers are very competitive nature banks and 11% are very high return on investment
banks.
Inference
Hence here ABN AMRO is giving the return on investment as per the market, so customer
preference is assured. Thus customers preference will increase bank services.
RESIDENCE TYPE
PERCENTAGE (%)
RENTED
RESPONDENTS
43
SELF OWNED
24
24%
COM:PROVIDED
21
21%
PARENT OWNED
12
12%
TOTAL
100
100%
43%
12%
43%
21%
24%
RENTED
SELF OWNED
COM:PROVIDED
PARENT OWNED
Interpretation
From the above table it is found that out of the total respondents, 43% of having rented
house. Followed by 24% of self owned, 21% of COM: provided and 12% of them having
parents house.
Inference
Hence it is found that majority of the respondents are having rented residence comparing to
self owned residence holders. Thus bank can assure their customers to own their residence
through financial assistance.
AVAILDHOME LOAN
NO.OF
PERCENTAGE (%)
YES
RESPONDENTS
40
NO
60
60%
TOTAL
100
100%
40%
40%
60%
YES
NO
Interpretation
From the above table it is found that out of the total respondents only 40% of respondents
are already having home loans, followed by 60% of respondents are not having home loans.
Inference
It can be analyzed that 60% of respondents have not accessed home loans, so the market for
home loan is very idle, ABN AMRO can improve their service and can attracts the
customers.
INTEREST
NO.OF
PERCENTAGE (%)
YES
RESPONDENTS
72
NO
28
28%
TOTAL
100
100%
72%
Figure 5.7.1
RESPONDENTS INTEREST
28%
72%
YES
NO
Interpretation
From the above table it is found that out of the total respondents 72% are interested in taking
home loan, comparing with not interesting respondents 28%.
Inference
More than 70% of respondents are interested in taking home loan, so this opportunity can be
utilized by the ABN AMRO BANK. Here bank has to provide the bet services to the new
customers.
TABLE 5.8
PURPOSE OF RESPONDENTS
NO.OF
PURPOSE
PERCENTAGE (%)
BUY
RESPONDENTS
20
CONSTRACT
23
31%
RECONSTRACT
17
24%
MODIFICATION
12
17%
TOTAL
72
100%
28%
17%
28%
24%
31%
BUY
CONSTRACT
RECONSTRACT
MODIFICATION
Interpretation
From the above table it is found that out of the total respondents 31% of the respondents are
like to construct the house. Followed by 28% is like to buy houses, 24% like to reconstruct
the house and 17% are like to modify their houses.
Inference
It can be analyzed that half of the respondents are likely to buy and construct their own
houses.Re construct and modification are very less in percentage when compared to the
former ones.
SECURITIES
NO.OF RESPONDENTS
PERCENTAGE (%)
EMPLOYMENT PROOF
16
23%
BANK STATEMENT
25
35%
09
12%
SALES AGREEMENT
22
30%
TOTAL
72
100%
30%
12%
23%
35%
EMPLOYMENT PROOF
BANK STATEMENT
SALES AGREEMENT
Interpretation
From the above table it is found that out of the total respondents 35%are ready to give bank
statement as a security. Followed by 30% are ready for sales agreement,23%are ready or
employment proof and giving tax paid receipt respondents are only 12%.
Inference
It can be analyzed that most of the respondents are ready to give as a security, Bank
statement or sales agreement. This both documents are also acceptable in ABN AMRO
Bank.
EMI PREFERENCE
PERCENTAGE (%)
5000-10000
RESPONDENTS
25
10000-15000
32
44%
ABOVE-15000
15
21%
TOTAL
72
100%
35%
Figure 5.10.1
21%
35%
44%
5000-10000
10000-15000
ABOVE-15000
Interpretation
From the above table it is found that out of the total respondents 44% are prefer EMI
between 10000-15000,35% are prefer EMI between 5000-10000 and 21% are prefer above
15000.
Inference
It can be inferred that the psychological set up coerces to prefer middle class emoluments
over higher ones.
NO.OF
PAYMENT
CASH
RESPONDENTS
20
CHEQUE
DEBIT
30
42%
08
11%
14
19%
72
100%
INSTRUCTION
OTHER MODES
TOTAL
PERCENTAGE (%)
28%
19%
28%
11%
42%
CASH
CHEQUE
DEBIT INSTRUCTION
OTHER SOURCE
Interpretation
From the above table it is found that out of the total respondents 42% are interested to
cheque payment ,28% are interested to cash payment,19% are other source of payment and
11% are interested in debit instruction.
Inference
It is found that out of the 72 respondents majority of them preferred cheque mode over
liquid cash.
MEDIA
PERCENTAGE (%)
ADVERTISEMENT
RESPONDENTS
30
DSA
38
36%
BANK EMPLOYEE
21
20%
OTHER SOURCE
11
21%
TOTAL
100
100%
23%
EFFECTIVENESS OF
COMMUNICATION MEDIAS
11%
30%
21%
38%
ADVERTISEMENT
DSA
BANK EMPLOYEES
OTHER SOURCE
Interpretation
From the above table it is found that out of the total respondents it was found that most of
the respondents 38% came to know about the bank from DSA (Direct Selling
Agent).followed by 30% of advertisement, 21% of bank employees and 11% of other
source.
Inference
It can be analyzed that among these Medias DSA is most effective, but in the competitive
world, most effective media is advertisement, so the bank has to concentrate more on the
advertisement media.
PERCEPTION
NO.OF
PERCENTAGE (%)
OK
RESPONDENTS
06
SATISFIED
07
42.10%
VERY GOOD
03
18.42%
EXCELLENT
01
05.27%
TOTAL
17
100%
34.21%
5%
18%
34%
43%
OK
SATISFIED
VERY GOOD
EXCELLENT
Interpretation
From the above table it is found that out of the 17 respondents 42% are satisfied with the
bank .Followed by 34% are in normal opinion about the bank,19% are very good perception
and 05%are excellent perception about the bank.
Inference
Hence it is seen that most of the respondents, more than 75% are satisfied and normally opt
for ABN AMRO Bank. So these customers are very worth full to the bank.
CHAPTER- 5
RESEARCHFINDINGS
SUMMARY OF FINDINGS
1. Majority of the respondents are males, 85%, and 15% are female. And most of them
belong to the age group of 20-40 years.
2. Majority of the respondents are male businessman and professionals. In the case of
females majority were employed.
3. Most of the respondents belonged to the income group of below 20000/- per month
and 20000-30000 per month.
4. The prominent motivational factor about ABN AMRO Account holder was free
access of ATMs, net banking, credit line, loan and investments. The next prominent
factor was the personal banker for each customer.
5. ABN AMRO is the most well known bank in the world. But in India the bank is not
very well known to the respondent. This was due to less investment in advertising
and sales promotion by the Bank.
6. Among the Medias chosen by the Bank for communicating the respondents about the
services, DSA (Direct Selling Agents) were the most successful. The next most
successful media were the advertisement; (television, press and radio) it caught the
attention of people in the all age group and income group.
7. Most of the respondent, more than 70% do not own a house, only 24% of
respondents own a house. In this situation bank can provide home finance.
8. Regarding the study to find out the decision maker in families; most of the
respondents relied on husband or father to make decisions.
9. All the respondents having ABN AMRO Bank account are satisfied with their
services offered by the bank.
10. The promotional activities done by ABN AMRO are not in par with other banks like
ICICI, HDFC and CITI bank. The promotional strategy adopted by ICICI is mostly
paper advertisements or hoarding in the major parts of the city. Where as ABN
AMRO does not practice this sort of promotional activities. This is a major
drawback.
CHAPTER- 6
SUGGESTIONSAND
CONCLUSIONS
SUGGESTIONS
After the research and findings, the following suggestions are;
1. ABN AMRO bank can also provide services to members in a company by
approaching and convincing
CEOs
Managing Directors
Heads in IT companies
To deal with the bank and assuring some extra convenience or extra facility in providing the
HOME FINANCE can provided if that company will have tie up with the bank.
It is not necessary to establish many branches in the city because it is already providing the
service of Free cash delivery and Free doorstep service. But the existing branch and the
services provided by this bank should be made known to the people by
Employing 2-3 skilled personnel and train them about the bank and banking services and
with special interest towards the HOME LOAN. These should daily approach to some
Manufacturing Industries or IT Industries or Financial Institutions and make aware of the
bank and the services provided by this bank.
They should make separate pamphlets explaining about the bank and the services in respect
to the HOME LOAN and issue these among the big companies and institutions with
mentioning their mode of payment etc.,
2. Bank can help the Home Loan customers to paying the EMI (Equally Monthly
Installments) through credit cards and from fixed income deduction.
3. ABN AMRO can overcome its drawbacks (customer complaints) if they follow the
following;
a)
Customer care is to be taken by the bank when they open their accounts with this bank.
Assurance is not only given while opening an account but bank should fulfill its promises
after issuing account also, Bank can provide easy documentation to the existing customers
b)
Personal touch is important. Employees and employers in the bank should not only see
the things from their professional point of view but also from the customer point of view.
Bank has to inform all other details regarding the Home Loan.
c)
ABN AMRO Bank Should provides the best services since it plays an important role in
attracting the customers, by bringing new services to the existing customer with the
minimum deposit balance every month and easy sanctioning.
4. To create the awareness of ABN AMRO bank (majority of the respondents who are
not aware and among others) the bank may follow the following steps;
As it is a newly emerging bank in the city, it is to be advertised throughout the city through
the following communication medias
News papers
Hoardings
Television
Magazines
Internet
CONCLUSION
As we know entire country depends on Banking sector. Therefore bank should be
sympathetic so that customer complaints will not grow. The ABN AMRO bank has very
good services when compared to other banks and people also expect these services. The only
thing the customer complains is that the bank should see the things from customer point of
view And the interest charges should be reduced, and lengthen the periodic payment as
there is tough competition with other banks providing HOME LOANS so ABN AMRO
bank also should make this type of facility to the customers.
ABN AMRO is a well oiled banking machine that has grown profits, built quality assets,
entered new business areas, invested in Technology and kept an eagle eye on all important
cost to revenues ratio.
Even the country Rep, Ramesh Sobti noted that the strength of this bank is the talent of its
people who have worked together and put in brilliant performances to pass through many
significant milestones. when someone in ABN AMRO says big it means, big in terms of
a meaningful market share in a business that makes the meaningful contribution to the
sustainable profitability of the bankand now ABN AMRO should strive to create extra
stickiness in their customer relationships.
BIBLIOGRAPHY
BOOKS:
1. Marketing Management
- Philip Kotler.
2. Marketing Research
3. Business Studies
- S.A. Siddiqui.
4. Service Marketing
5. Journals, magazines etc.,
WEB SOURCE:
www.abnamro.com
www.abnamro.co.in
www.banking/services.com
www.international/banking.com
www.google.com
www.yahoo.com
www.search.com
-Ravi Shanker.
ANNEXURES
2004
2003
17,794
12,734
Assets
Cash
2,5
Interest-earning securities
Shares
Participating interests
16,578
9,240
83,710
58,800
5,967
5,489
233,815
234,776
59,269
56,578
299,051
296,843
133,869
132,041
25,852
16,245
2,309
2,629
6,798
7,204
15,338
16,548
7,324
8,153
608,623
560,437
132,732
110,887
Liabilities
Banks
10
Savings accounts
Deposits and other client accounts
Professional securities transactions
Total client accounts
11
74,256
73,238
178,640
168,111
40,661
48,517
293,557
289,866
Debt securities
12
82,926
71,688
Other liabilities
43,040
33,207
9,776
11,840
13
15
Shareholders equity
Minority interests
14
16
13,553
11,146
575,584
528,634
1,149
1,143
12,639
13,900
14,972
13,047
4,279
3,713
Group equity
19,251
16,760
Group capital
33,039
31,803
608,623
560,437
17
Contingent liabilities
23
Committed facilities
Numbers stated against items refer to the notes
46,464
42,838
145,092
119,675
2004
2003
2002
Interest revenue
23,196
23,529
27,370
Interest expense
13,530
13,806
17,525
9,666
9,723
9,845
Revenue
26
27
Commission revenue
Commission expense
1,620
269
369
5,452
5,160
5,421
702
696
782
4,750
4,464
4,639
2,288
1,993
1,477
1,469
2,344
1,950
10,127
9,070
8,435
Total revenue
19,793
18,793
18,280
7,764
7,080
7,407
4,962
4,575
4,647
12,726
11,655
12,054
Net commissions
28
29
30
Expenses
Staff costs
31
32
Administrative expenses
Depreciation
961
930
1,094
13,687
12,585
13,148
653
1,274
1,695
16
49
14,342
13,875
14,892
5,451
4,918
3,388
Taxes
1,071
1,503
973
4,380
3,415
2,415
33
Operating expenses
Provision for loan losses
34
38
Net profit
Earnings per ordinary share
40
40
36
271
254
208
4,109
3,161
2,207
2.45
1.94
1.39
2.45
1.93
1.38
1.00
0.95
0.90
2004
2003
4,380
3,415
961
930
653
1,274
953
287
513
(1,236)
(1,065)
2,092
401
226
350
908
(20,876)
(6,546)
(2,149)
(1,500)
355
839
(19,724)
(4,638)
5,890
(3,498)
(4,158)
19,735
14,741
(3,451)
4,658
(5,644)
6,661
(2,744)
(4,616)
1,324
7,996
(10,673)
(14)
-1-
(19,403)
(1,994)
18,792
(73,810)
(151,771)
(144,584)
75,224
148,015
122,697
1,414
(3,756)
(21,887)
(322)
(1,010)
(479)
2,680
364
280
2,358
(646)
(199)
(1,046)
(1,563)
(1,292)
186
491
497
Net (outflow)
(860)
(1,072)
(795)
2,912
(5,474)
(22,881)
2,049
1,281
106
(1,911)
(1,258)
50
1,025
114
(797)
(164)
(964)
25,525
19,426
8,815
(8,462)
(10,236)
(7,349)
(964)
(915)
(999)
15,490
9,159
(277)
Cash flow
(1,001)
1,691
(4,366)
For details refer to note 43
-2-
2004
2003
2002
Ordinary shares
Opening balance
919
890
862
Stock dividends
33
28
25
Closing balance
954
919
890
813
814
815
(1)
(1)
(46)
Closing balance
767
813
814
2,549
2,543
2,504
48
63
32
Stock dividends
(33)
(28)
(25)
Closing balance
2,565
2,549
2,543
11,166
8,933
8,161
4,109
3,161
2,207
(43)
(45)
(46) Cash
(694)
(655)
(599) Goodwill
30
(425)
(201)
(430)
(1)
(32)
(479)
14
(374)
186
(212)
215
29
13,876
11,166
8,933
283
124
355
Revaluation reserves
Opening balance
Realised revaluations to general reserve
(186)
Revaluations
(79)
159
(45)
Closing balance
204
283
124
(2,564)
(2,098)
(476)
(198)
(466)
(1,622)
(2,762)
(2,564)
(2,098)
Opening balance
(119)
(125)
(123)
Increase (decrease)
(513)
(2)
Closing balance
Treasury stock
Closing balance
Total shareholders equity
(632)
(119)
(125)
14,972
13,047
11,081
-3-
Commercial
2004
2003
8,103
11,382
23,994
28,074
791
1,006
3,305
3,113
91,188
87,408
127,381
130,983
Retail
Public authority guarantees
Mortgages
Other types of collateral and unsecured
Total retail loans
151
50
82,700
80,794
26,494
26,862
109,345
107,706
004
2003
11,700
11,202
Manufacturing
23,925
27,980
22,539
19,025
16,443
18,329
12,387
12,966
Financial services
19,967
21,188
Business services
10,310
10,565
10,110
9,728
127,381
130,983
-4-
QUESTIONNAIRE
Client Name:
Phone No:
Address:
1. Age Group:
2. Gender:
20 30
Male
30-40
Above40
Female
3. Occupation
Salaried
Self employed
Professional
Business persons
Others
4. Monthly income:
1000-10000
10000-20000
20000-30000
Above 30000
ABN AMRO
CITI BANK
Others
SBI
6. How was pre approval and post sanction services of your current bank?
Ok
Satisfactory
very good
Excellent
Very high
Self owned
COM: Provided
Parent owned
No
-5-
If yes:
Bank name:
Amount:
Tenure:
ROI:
Processing fee:
Reason for this bank:
10. Are you interested in taking ABN AMRO Home Loan (smart mail)?
Yes
No
To Construct
Re constructs
Modification
Bank statement
Sales agreement.
13. The amount you prefer to pay as EMI for taking a new HOME LOAN?
5000-10000
10000-15000
Above 15000
By cash
By debit instructions
Other modes
15. How did you know about the ABN AMRO Home Loan (smart mail)?
Advertisement
DSA
Bank employee
Other source
16. Are you satisfied with ABN AMRO Home Loan services?
Ok
Satisfactory
Very good
Excellent
.
Thank you.
CMR INSTITUTE OF TECHNOLOGY,
6 BANGALORE
-6-
-7-