SUMMER INTERNSHIP PROJECT

ON
Marketing of Retail Product
At

In Partial Fulfilment of
PGDM IMG 6
FORE SCHOOL OF MANAGEMENT

Submitted To
Prof. Sanghamitra Buddhapriya
Faculty, FORE School of Management

Submitted By
Nitin Shivnani
IMG 6, Roll No. 063033

FORE SCHOOL OF MANAGEMENT

June 2013
i|Page

CERTIFICATE

This is to certify that Mr. Nitin Shivnani Roll No. 063033 has completed his summer
internship at Central Bank of India, Agra and has submitted this project report
entitled Marketing of Retail Products towards part fulfilment of the requirement for
the award of the Post Graduate Diploma in Management (IMG-6) 2012-2014.
This report is the result of his own work and to the best of my knowledge, no part of it
has earlier comprised in any other report, monograph, dissertation or book. This
project was carried out under my overall supervision.

Date:
Place:

Mr. R.K. Jain

Regional Manager
Central Bank of India

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CERTIFICATE

This is to certify that Mr. Nitin Shivnani Roll No. 063033 has completed his summer
internship at Central Bank of India, Agra and has submitted this project report
entitled Marketing of Retail Products towards part fulfilment of the requirement for
the award of the Post Graduate Diploma in Management (IMG-6) 2012-2014.
This report is the result of his own work and to the best of my knowledge, no part of it
has earlier comprised in any other report, monograph, dissertation or book. This
project was carried out under my overall supervision.

Date:
Place:

Prof. Sanghamitra Buddhapriya

Internal Faculty Guide
FORE School of Management

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ACKNOWLEDGEMENT

I, Nitin Shivnani, have taken efforts to work on a project Marketing of Retail

Product of Central Bank of India. However, it would not have been possible
without the kind support and help of many individuals. I would like to extend my
sincere thanks to all of them who helped me directly and indirectly in completion of
this project successfully.
First of all I would like to extend my utmost regard to Central Bank of India who
provided me such a great opportunity and gave me a chance to work in such world
class organizations. I am highly indebted to my project guide, Mr. R.K. Jain,
Regional Manager, Central Bank of India, without whom guidance I would not
have been able to complete this project successfully. I would like to thank him and
Mr. A.K. Agarwal, Zonal Manager, Central Bank of India for allotting me this
project and their continuous support and guidance.
I would also like to thank Mr. S.K. Singh, Assistant Manager, HRD and Mr.
Saurabh Singh Sawant, Risk Manager and all other company personnel, who
extended their kind support and guidance whenever I needed.
I would like to take this opportunity to express my gratitude to my faculty mentor,
Prof. Sanghamitra Buddhapriya, FORE School of Management, for her
continued guidance and support. Her encouraging words motivated me towards
achievements of objectives and work harder to complete the project successfully.
My thanks and appreciations also go to all the people who have willingly helped
me out with their abilities.

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EXECUTIVE SUMMARY
Central Bank of India, a government-owned bank, is one of the oldest and largest
commercial banks in India. The bank has 4294 branches and 270 extension
counters across 27 Indian states and three Union Territories. The project aims at
developing strategies for Retail Products of Central Bank of India so as to make it
more popular within the city Agra.
In this we have taken products of Central Bank and compared it with the products of
5 other renowned bank in the city i.e. HDFC Bank, ICICI Bank, Punjab National
Bank, State Bank of India and YES Bank. I have also done consumer behaviour
analysis so as to know what general public thinks, is best for them. On this
comparative study of products through secondary sources, recommending ways of
how to improve your products and through consumer behaviour analysis through
primary source, telling what general public expect from bank. Through consumer
behaviour analysis we got to know which all banks are performing well in Agra.
For Consumer behaviour analysis, I made a questionnaire which was filled by the
people using these retail products of different banks. Then on this result, I applied
SPSS Software through which we got to know the lagging points of Central Bank of
India. On that basis giving recommendation, so as to improve bank position in mind
of general public and increasing the banks profitability.
Once these lagging points are overcome then Central Bank of India would also be
among the leading banks, having maximum business in city Agra.

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TABLE OF CONTENTS
CERTIFICATE...................................................................................................... i
CERTIFICATE...................................................................................................... ii
ACKNOWLEDGEMENT....................................................................................... iii
EXECUTIVE SUMMARY..................................................................................... iv
TABLE OF CONTENTS....................................................................................... v
LIST OF TABLES................................................................................................ vii
INTRODUCTION................................................................................................... 1
Background...................................................................................................... 1
Major Highlights................................................................................................ 3
Achievements................................................................................................... 4
Objective........................................................................................................... 5
Assumptions (Banks)........................................................................................ 5
ICICI Bank....................................................................................................... 6
State Bank of India.......................................................................................... 6
HDFC Bank..................................................................................................... 7
YES Bank........................................................................................................ 7
Punjab National Bank...................................................................................... 8
Retail Product.................................................................................................... 9
METHODOLOGY.................................................................................................. 10
Research Design Procedure............................................................................. 10
Analysis............................................................................................................. 12
Primary Data.................................................................................................... 12
Secondary Data................................................................................................ 14
Retail Products............................................................................................... 14
Deposits...................................................................................................... 14
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Saving Account...................................................................................... 14
Recurring Deposits................................................................................ 15
Current Account..................................................................................... 16
Recommendations................................................................................. 16
Loans.......................................................................................................... 16
Mortgage Loan....................................................................................... 16
Vehicle Loan........................................................................................... 18
Home Loan............................................................................................. 21
Education Loan....................................................................................... 23
Gold Loan............................................................................................... 25
Recommendations.................................................................................. 26
Ancillary Services......................................................................................... 27
Corporate Internet Banking..................................................................... 27
Recommendations.................................................................................. 28
Third Party Services..................................................................................... 29
Bankassurance........................................................................................ 29
Mutual Funds........................................................................................... 30
Recommendations................................................................................... 31
RESULTS............................................................................................................... 32
CONCLUSIONS...................................................................................................... 34
RECOMMENDATION............................................................................................. 35
REFERENCE.......................................................................................................... 38
ANNEXURE............................................................................................................ 39
Questionnaire................................................................................................. 39

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LIST OF TABLES

Description
Segmentation of Branches
Major highlights about the Bank
Factors that are being checked through questionnaire
Case Processing Summary
Reliability Statistics
Reliability Test for each Banks
Reliability Test for each Dimension
Recurring Deposits interest rates in different banks
Interest rates for Mortgage loans of State Bank of India
Interest rates for Mortgage loans of Punjab National Bank
Interest rates for Vehicle loans of Central Bank of India
Repayment for Vehicle loans of Central Bank of India
Interest rates for Vehicle loans of ICICI Bank (New Car)
Interest rates for Vehicle loans of ICICI Bank (Old Car)
Interest rates for Vehicle loans of State Bank of India
Interest rates for 2- Wheeler loans of State Bank of India
Interest rates for Vehicle loans of State Bank of India (Used Cars)
Interest rates for Vehicle loans of Punjab National Bank
Interest rates for Home loans of Central Bank of India
Interest rates for Home loans of ICICI Bank
Interest rates for Home loans of State Bank of India
Interest rates for Home loans of Punjab National Bank
Interest rates for Education loans of Central Bank of India
Interest rates for Education loans of Punjab National Bank
Interest rates for Education loans of State Bank of India
Interest rates for loans against Gold of ICICI Bank
Interest rates for loans against Gold of State Bank of India
Result of the survey by SPSS

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INTRODUCTION
Background
Indias banking sector has seen large growth, and is regarded as one of the best in
the developing world. That is because we had adopted a policy measure quite some
time ago unlike many other developing countries to follow the best international
standards, both for public sector and private sector banks. That is very important in
terms of capital adequacy, provisioning of bank loans, etc.
Today, Indias commercial banking sector is a sound, rule-abiding system that meets
all the criteria of a good banking system. Non-performing assets, or NPAs, are better
in comparison with several countries. Even in terms of interest rate spread the cost
of banking is how much you charge above the minimum interest rate we compare
quite favourably with the rest of the world. We did not adopt the kind of subsidiaries,
collaterals and investment banking systems that some parts of the world such as the
US adopted. This is why in the 2008 crisis, we did not go haywire, though it did affect
the profits of our banks. Now, other countries, too, are considering a conservative,
straightforward banking system.
Central Bank of India, a government-owned bank, is one of the oldest and largest
commercial banks in India.
Table 1: Segmentation of Branches

Total Branches*

4294

Rural

1559

Semi Urban

1169

Urban

830

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Metropolitan

736

ATMs

2523

USBs

3612

Figure 1: Branch Segmentation

Branch Segmentation

Metropolitan
17%

Rural
36%

Urban
20%

Semi Urban
27%

Source: Central Bank of India

Last year i.e. 2012-13, CBI has opened 283 branches in the country.
*A Real PAN India bank with presence in 568 districts out of 642 districts of the
country.
The bank has 4294 branches and 270 extension counters across 27 Indian states
and three Union Territories.
In India there is total 92485 branches of different banks.

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At present, Central Bank of India has one overseas office, which is a joint venture
with Bank of India, Bank of Baroda, and the Zambian government. The Zambian
government holds 40 per cent stake and each of the banks has 20 per cent.
Bank has designed various products to cater the different needs of their variety of
customers, which includes commercial loans, retail loans, credit cards, prepaid
cards, yatra cards, insurance tie ups, mutual funds tie ups, gold and silver coins etc
to meet all their business and personal financial requirements.
Central Bank provide its customers with 4 type of products like
Deposits
Loans
Third Party Services
Ancillary Services
These days banking products are specially designed keeping customers segment
and relation in mind. Retail banks provides e-banking facilities for their high net worth
and techno-savvy customers which will enables to do the banking transactions from
anywhere in the world without physically going down to the branch.

Major Highlights FY 13
Increase/ decrease
over 2012
Net Profit

Rs 1015 crore

90.43% Inc

Net NPA

Rs 4988 crore

2.90% Dec

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Gross NPA

Rs 8456 crore

4.80% Dec

Total Business

Rs 402272 crore

15.96% Inc

Total Deposits

Rs 226038 crore

15.22% Inc

Core Rs 170953 crore

27.84% Inc

Rs 176234 crore

16.92% Inc

Aggregate
Deposits
Advances

Table 2: Major highlights about the Bank

Achievements

During the year Bank has added 847 ATMs to reach 2,529 ATMS
concentrating in Tier II and Tier III towns.
Share of Electronic transaction increased from 13.37% to 30% of total
transactions during the year.
Debit Card base doubled from 21 lacs to 42 lacs during the year.
During the year Internet banking customer base increased from 1.81 lacs to
6.02 lacs registering an impressive growth of 233%.
Direct Benefits Transfer successfully implemented in 6 districts.
Bank stood 2nd in mobilizing insurance premium amongst all Bancassurance
partners of LIC with Y-o-Y growth of 32%. Bank has canvassed 1,49,668
policies with premium of Rs. 238 crores.
Under general insurance business, Bank has mobilized 1,89,956 policies with
premium collection of Rs.83crore with Y-o-Y growth of 38%.

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 Bank has launched new cards viz. World Credit Card, IDA Co Branded
Credit Card and Big Cinema Credit Card.

Objective
The objective of this research is Marketing of the retail products of Central Bank of
India. As these retail products are a major source of income for any bank so through
this study, suggest ways how Central Bank should market their products so as to
attract more customers and what all they must include to improve their products
performance in comparison to other banks product.
I would be covering 3 aspects in this report:
Developing market strategies of Retail Products for Central Bank of India.
Comparative study of products for 6 different banks and recommending ways
if there is room for improvement.
Comparative analysis of consumer expectation in terms of 4 dimensions i.e.
customer orientedness, convenience, tangibles and competence.

Assumptions
Banks
My study would be limited to six banks including Central Bank of India. I would be
comparing the products of these six banks. In this, i have taken three private sector
banks i.e. HDFC Bank, ICICI Bank and YES Bank and two public sector banks i.e.
Punjab National Bank, State bank of India other then Central Bank of India.

5|Page

These all banks are the leading banks and are preferred by most of the people now
days. And most of our questionnaires are filled by the customer of these banks.

About ICICI Bank

ICICI Bank is India's largest private sector bank with total assets of Rs. 5,367.95
billion (US$ 99 billion) at March 31, 2013 and profit after tax Rs. 83.25 billion (US$
1,533 million) for the year ended March 31, 2013. The Bank has a network of 3,130
branches and 10,486 ATMs in India, and has a presence in 19 countries, including
India.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialised subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management.

About State Bank of India

State Bank of India is India's largest bank with a network of over 15000 branches
and 5 associate banks located even in the remotest parts of India.
State Bank offers you the convenience of over 27500 ATMs in India, already the
largest

network

in

the

country

and

continuing

to

expand

fast!

This means that you can transact free of cost at the ATMs of State Bank Group (This
includes the ATMs of State Bank of India as well as the Associate Banks namely,
State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore,
State Bank of Patiala, and State Bank of Travancore), using the State Bank Cash
Plus card.
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SBI has 27,000+ ATMs (25,000th ATM was inaugurated by the then Chairman of
State Bank Shri O.P. Bhatt on 31 March 2011, the day of his retirement); and SBI
group (including associate banks) has about 45,000 ATMs. SBI has become the first
bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the
Bank's 27,032nd ATM on 27 July 2012.

About HDFC Bank

HDFC Bank Limited is an Indian financial services company based in Mumbai,
Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth
largest bank in India by assets and the first largest bank by market capitalization as
of November 1, 2012. The bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of India. As on
May 2013, HDFC Bank has 3,062 branches and 10,743 ATMs, in 1,568 cities in
India, and all branches of the bank are linked on an online real-time basis. The
Banks total balance sheet size increased by 18.5% to ` 400,332 crores as of March
31, 2013 from ` 337,909 crores as of March 31, 2012.

About YES Bank

YES BANK, India's fourth largest private sector Bank, is an outcome of the
professional entrepreneurship of its Founder, Rana Kapoor and his highly competent
top management team, to establish a high quality, customer centric, service driven,
private Indian Bank catering to the Future Businesses of India. YES BANK is the
only Greenfield license awarded by the RBI in the last 17 years, associated with the
finest pedigree investors.

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Today, YES BANK has a widespread branch network of over 425 branches across
275 cities, with 950+ ATMs and 2 National Operating Centers in Mumbai and
Gurgaon.
YES BANK has been recognized amongst the Top and Fastest Growing Banks in
various Indian Banking League Tables by prestigious media houses and Global
Advisory Firms, and has received several national and international honours for our
various Businesses including Corporate Finance, Investment Banking, Treasury,
Transaction Banking, and Sustainable practices through Responsible Banking. The
Bank has received numerous recognitions for its world-class IT infrastructure, and
payments solutions, as well as excellence in Human Capital.

About Punjab National Bank

With over 72 million satisfied customers and 5937 domestic branches, PNB has
continued to retain its leadership position amongst the nationalized banks. The Bank
enjoys strong fundamentals, large franchise value and good brand image.
PNB is the largest nationalised Bank in the country in terms of Branch
Network, Total Business, Advances, Operating Profit and Low Cost CASA
Deposits. Total business crosses Rs. 7.00 lac crore in FY 2012-13. The CASA
deposits share to the Total Deposits of the Bank was at 40% as on April 2013.
Towards developing a cost effective alternative channels of delivery, the Bank with
more than 6050 ATMs has the largest ATM network amongst Nationalized Banks.

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Products
In any commercial bank there are basically four type of retail products i.e. deposits,
loans, third party services, and ancillary services.
Deposits Saving Deposit , Recurring Deposit, Term Deposit, NRI Deposit
Loans Housing loan, Vehicle loan, Personal loan, Mortgage loan, education
loan, Gold loan, reverse mortgage loan.
Third party services Life insurance, Mutual funds, Demat Services.
Ancillary Services - Internet banking, credit cards, debit cards, drafts.
On all these products, comparison would be done among these six banks and then
required measures would be suggested.

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METHODOLOGY
Research Design Procedure
The research would include comparison of retail products catered by Central Bank of
India from that of different leading banks and through this, telling the actual position
of Central Bank and ways to how they can improve their product and make it more
attractive. For this research the procedure we are going to take are:
Preparing a questionnaire to know the consumer behaviour towards different
banks product and services they offer. By this we would be able to say which
factor plays a major role in attracting consumer and on what should Central Bank
of India work.
Factors on which consumer behaviour would be checked are good and fast
services, rate of interest on investment, ambience of bank, consistent in its
operations, advance technology, connectivity, fast disposal of proposals,
customer friendly and easiness/simplicity in conducting banking operation.
Questionnaire comprised of 15 general questions about bank which can be
categorized into four dimensions:

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Factor 1:

Factor 2:

Factor 3:

Factor 4:

Customer

Competence

Tangibles

Convenience

Prompt Service

Responsiveness

Physical Facilities

Branch Locations

Courteousness

Right Service

Materials

ATM Network

Knowledge

Dependability

Operating hours

Service Timing

Personal attention

Safety

Orientedness

Ability to
understand
Table 3: Factors that are being checked through questionnaire

Our target segment were people who use retail products of different banks
and by getting the questionnaire filled by them, we got their view point of what
they prefer the most. Questionnaire is attached at last.
For getting my questionnaire filled, I have gone to different banks branches
and got the questionnaire filled by the general public and also by my
neighbours and friends.
This data was entered into excel sheet and SPSS software was applied for
checking the reliability.
Also I have taken some products of Central Bank and compared with other
banks product and this data was mostly collected from secondary sources
such as internet by assessing particular bank site and pamphlets of that
banks product. Some data was also collected by going to that banks branch
and asking the concerned person dealing with that retail product.

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 After comparing the products, giving suggestions on how they could improve
their product and make more out of it.

Analysis
Primary Data
The sample size is of 149 i.e. the questionnaire was filled by 149 people. Our target
segment were the general public using these retail products.
Table 4: Case Processing Summary

Valid
Cases Excludeda
Total

149

100.0

.0

149

100.0

Table 5: Reliability Statistics

Cronbach's

N of Items

Alpha
.893

In statistics, Cronbach's

15

(alpha) is a coefficient of internal consistency. It is

commonly used as an estimate of the reliability of a psychometric test for a sample

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of examinees Cronbach's alpha is widely believed to indirectly indicate the degree to

which a set of items measures a single unidimensional latent construct.
As value of Cronbachs Alpha is 0.893 i.e. greater then 0.7, this mean our
questionnaire is reliable for fetching the right data.
Reliability (Cronbach's alpha) for the modified SERVQUAL scale was tested for each
of the six banks and for the entire sample.
Bank

Cronbachs Alpha

Central Bank of India

0.707

HDFC Bank

0.717

ICICI Bank

0.851

Punjab National Bank

0.897

State Bank of India

0.914

YES Bank

0.655

Total Pilot Study

0.893

Table 6: Reliability Test for each Banks

It can thus be seen that the reliability figures are high, all above the recommended
lower limit of 0.70 except that of YES Bank. This is due to small sample size of each
bank and YES bank is considered good in mid sized bank while other 5 are large
sized banks.

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Dimensions

Cronbachs Alpha

Customer Orientedness

0.854

Competence

0.776

Tangibles

0.717

Convenience

0.771

Table 7: Reliability Test for each Dimension

These all dimensions are also fulfilling the reliability test. By this we can say that
through this questionnaire, we can extract the right result.

Analysis of Secondary Data

Retail Products
Deposits:
Saving account
Central Bank of India Comprises of premium saving account, Cent Bal Bhavishya and Cent bachat khata.
Savings Deposit Interest rate 4.00% p.a.
Minimum Deposits
In Rural & Semi Urban Branches: Rs.500
In Urban & Metro Branches Rs.1000

Other Banks
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ICICI Bank 4.00% p.a.

Punjab National Bank 4.00% p.a.
HDFC Bank 4.00% p.a.
State Bank of India 4.00% p.a.
YES Bank is the first bank to offer differentiated rates on savings account following
RBIs deregulation of savings account rates in October 2011. Bank offers a 7%
interest rate on savings account of balances above 100,000 and 6% for balances
below ` 100,000.

Recurring Deposits
Time

CBI

HDFC

ICICI

SBI

PNB

YES

7.75

7.50-8.00

7.00-7.25

6.50

7.50

8.25-8.75

9.00-

9.00-8.75

7.50-9.00

8.75

8.75

8.75

months364 days
1-2 years

9.15
2-3 years

8.75

8.75

8.75

8.75

8.75

8.75

3-5 years

8.50

8.75

8.75

8.75

8.75

8.75

Above 5

8.50

8.25

8.50

8.75

9.00

8.75

years
Table 8: Recurring Deposits interest rates in different banks

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Current Account
All banks provide almost same facilities and features for Current Account.

Recommendation:
CASA is one of the major source of income for Banks so almost every bank is
working on it. It is the major source of profitability. So Central Bank should focus
on it and try to have as many customers.
This can be done by arranging camps and awareness programmes, where bank
representatives should try to convince people and tell them what benefits they
would be having if they open their account in our bank.
It can be seen through an article that HDFC Bank's retail services have become
by and large the best in India and since the contribution to CASA i.e. total
number of current and savings account of more than 50%, making HDFC BANK
India's No.1 Private Sector Bank.
Easing the process of Know your Customer so that a person interested in
opening an account dont get irritated by the tedious formalities.

LOANS
Mortgage Loans
Central Bank of India
Cent Mortgage

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Purpose

Loan

against

mortgage

of

immovable

property

located

in

metro/urban/semi urban/rural centres. Personal or business expenses but not for

speculative purpose.
Eligibility Businessmen, Traders, professionals & self employed persons,
proprietary firms, partnership firms (excluding traders or partnership firms where
HUF is a partner), companies (excluding NBFCs)
Facility Term loan & Overdraft.
Amount of Loan Minimum of Rs 1 lakh & Maximum of Rs 1000 lakh.
Security EM of non encumbered property having market value of at least 200%
of the loan amount.
Rate of Interest Base rate + 4.50% irrespective of TL/OD/Tenor.
Repayment 120 EMIs from next month
For State Bank of India
Loan against Mortgage of Immovable Property

Size of Credit Limit

Rate of Interest

(Term Loan)
Upto Rs. 1,00,00,000/-

5.25% above Base Rate Floating,

currently 14.95% p.a.

Above Rs. 1,00,00,000/-

5.50% above Base Rate Floating,

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currently 15.20% p.a

Table 9: Interest rates for Mortgage loans of State Bank of India

For Punjab National Bank

Less then 3 years

More then 3 years

BR+ 4.75%

BR + 4.75% + TP

Table 10: Interest rates for Mortgage loans of Punjab National Bank

Public Sector Bank loans are more beneficial then private sector because of no extra
payment and hidden cost.
In ICICI, HDFC and YES Bank, interest rate and fees depend on the amount of loan
and processing fees are also associates with it that too also depending on the total
amount.

Vehicle Loans
Central Bank of India
Cent Vehicle
Purpose Loan against purchase of 2 wheeler or 4 wheelers solely for the purpose
of personal use.
Eligibility Finance is extended individually or jointly with spouse. Companies/
Proprietorship , partnership firms/ Societies etc.
Maximum Loan Amount
Indian Made Vehicles Rs 20.00 lakhs
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Imported Vehicles Rs 40.00 lakhs

Old Vehicles Rs 10.00 lakhs
Margin
New Vehicle: Upto 20.00lakh 15%
More than 20.00 lakh 25%
Old Vehicle 40% (not more than 3 years old)
Interest Rate
Repayable

New Vehicle

Two Wheeler

BR + 1.0%

Four Wheeler

BR + 0.50%

Second hand Vehicle

BR + 1.50%

Table 11: Interest rates for Vehicle loans of Central Bank of India

Present Base Rate 10.25% p.a.

Repayment
4 Wheeler

Maximum 84 months

2 Wheeler

Maximum 48 months
Table 12: Repayment for Vehicle loans of Central Bank of India

For ICICI Bank

Tenure of

Up to 23

24-35

36-60

credit facility

months

months

months

Type of credit

Rate of interest

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facility
New Car

15.75% to

13.75% to

11.50% to

16.50%

15.50%

14.25%

Loans

Table 13: Interest rates for Vehicle loans of ICICI Bank (New Car)

Type of credit facility

Rate of interest

Used Car Loans

16.50% to 18.00%

Table 14: Interest rates for Vehicle loans of ICICI Bank (Old Car)

For State Bank of India

Tenure

Rate of Interest

For all tenures

For Term Loan and Overdraft:

0.75% above Base Rate, i.e. 10.45% p.a.
Table 15: Interest rates for Vehicle loans of State Bank of India

Two - Wheeler Loan

Tenure

Rate of Interest

Up to 3 years

8.25% above Base Rate i.e. 17.95% p.a.

Table 16: Interest rates for 2- Wheeler loans of State Bank of India

Used Vehicles
Tenure

Rate of Interest

Up to 3 years

7.25% above Base Rate i.e. 16.95% p.a.

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Above 3 yrs

7.50% above Base Rate i.e. 17.20% p.a.

Table 17: Interest rates for Vehicle loans of State Bank of India (Used Cars)

For Punjab National Bank

Less then 3 years

More then 3 years

BR + 1.00%

BR + 1.50%

Table 18: Interest rates for Vehicle loans of Punjab National Bank

Home Loan
Central Bank of India
Purpose Loan against construction/ acquiring of new or existing house/ flat not
older than 30 years.
Extension in the existing flat.
For repairs/ renovation/ alteration in the existing flats
Purchase of plot for construction of house with composite plan.
Quantum Maximum limit is Rs 50 crore.
Rate of Interest
Table 19: Interest rates for Home loans of Central Bank of India

Upto Rs 30 lakh

Rs 30 lakh to Rs

Above Rs 75 lakh

75 lakh
BR

BR

BR + 0.25%
Base Rate 10.25% p.a.
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Repayment Maximum of 25 years

For ICICI Bank

Initial Tenor

HL <= Rs. 3.0 million

HL > Rs. 3.0 million

2 Year

10.25%

10.50%

3 Year

10.50%

10.75%

5 Year

10.75%

11.00%

Table 20: Interest rates for Home loans of ICICI Bank

For State Bank of India

Loan Amount

Linkage with Base Rate

Effective Rate

over the tenor of the

loan
Upto Rs. 30.00 lacs

0.25% above Base Rate

9.95% p.a.

Above Rs. 30.00 lacs

0.40% above Base Rate

10.10% p.a.

Base Rate= 9.70% p.a.

Table 21: Interest rates for Home loans of State Bank of India

For Punjab National Bank

Interest Rate

Upto 75 lakhs

Above 75 lakhs

BR

BR + 0.25%

Base rate 10.25% p.a.

Table 22: Interest rates for Home loans of Punjab National Bank

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Education Loan
Central Bank of India
Cent Vidyarthi
Purpose Loan for pursuing higher studies in India & abroad.
Eligibility Student should be an Indian National having secured admission to
Professional/ Technical courses through entrance test / selection process. Teachers
trainings, Nursing course, B Ed course are also eligible.
Maximum Loan Amount Rs 10 lakhs for studies in India.
Rs 20 lakhs for studies Abroad.
Security
Up to Rs 4 lakhs No security
Above Rs 4 lakhs and up to Rs 7.5 lakhs collaterals in the form of a satisfactory
third party guarantee.
Above Rs 7.5 lakhs Collateral security of suitable value or Co obligation of
parents/ guardians/ third party along with the assignment of future income of the
student for payment of instalments.
Rate of Interest:Type of Borrower

Rate of Interest

Special concession for

IIM Student

Male Student

BR + 2.0%

BR + 0.5%

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Female Student, SC/ST

BR+ 1.5%

BR

& Minority Community

Table 23: Interest rates for Education loans of Central Bank of India

Repayment Repayment to commence 12 months after completion of studies or 6

month after securing jobs whichever is earlier. Maximum period 5 to 7 years.
Repayment on EMI basis.
For Punjab National Bank
Repayable in less then

Repayable in 03 yrs &

03 yrs

above

Loan upto Rs 4 lacs

BR + 3.00%

BR + 2.50% + TP

Loan over Rs 4 lac to upto

BR + 4.00%

BR + 3.50% + TP

BR + 3.50%

BR + 3.00% + TP

Vidyalakshapurti

7.50 lacs
Loan over Rs 7.50 lac

Table 24: Interest rates for Education loans of Punjab National Bank

For State Bank of India

Table 25: Interest rates for Education loans of State Bank of India

Loan Amount

Loan Amount

For loans upto Rs.4 lacs

3.50% above Base Rate, currently

13.20% p.a.

Above Rs.4 lacs and upto Rs.7.50 lacs

3.75% above Base Rate, currently

13.45% p.a.
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Above Rs.7.50 lacs

1.75% above Base Rate, currently

11.45% p.a.

*(0.50% concession in interest for girl student)

* (1% concession for full tenure of the loan, if interest is serviced promptly as and
when applied during the moratorium period, including course duration)

Gold Loan
Central Bank of India
Cent Personal Gold Loan Scheme
Purpose Loan taken for meeting urgent personal expense like marriage/ medical/
educational needs etc.
Security Pledge of gold ornaments of 22 carat purity or Gold coins sold by our
Banks.
Facility Overdraft/ Term Loan
Quantum Minimum: Rs 10,000
Maximum: Rs 20,00,000
Rate of Interest For overdraft: BR+ 2.00%
For Term Loan: BR + 1.00%
Repayment
In case of Term Loan : 12 to 36 months

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In case of Overdraft: To be reviewed annually

For ICICI

Type of credit facility

Rate of interest

Personal Loans

14.00% to 19.00%

Table 26: Interest rates for loans against Gold of ICICI Bank

For State Bank of India

Size of Credit Limit

Rate of Interest

Upto Rs. 1,00,000/-

4.25% above Base Rate Floating,

currently 13.95% p.a.

Above Rs. 1,00,000/-

4.75% above Base Rate Floating,

currently 14.45% p.a.

Base Rate 9.70% p.a.

Table 27: Interest rates for loans against Gold of State Bank of India

For HDFC Bank

Rate of Interest varies from 14.50 to 22.25%

Recommendations:
The interest rates of every bank are almost same, maximum variation is of 0.5%
p.a. in that particular segment. Public Sector banks have low interest rates as

26 | P a g e

compared to private sector banks. This difference is because of the services

provided by private sector are more customer oriented.
Central Bank should majorly focus on NPA as this is affecting both the
profitability and provisioning of the bank. We need to keep provisioning money
separate for NPA which cant be used for other purposes.
Bank should arrange recovery camps at regular intervals so as to reduce Non
Performing Assets.
Bank should also give weightage to retail portfolio as there probability of
occurrence of NPA is less and Central bank has highly invested in commercial
sector which are not or less performing these days.

ANCILLARY SERVICES
Corporate Internet Banking
For Central Bank of India
Features
View Transactions
Download Statements
Enquire status of Cheques
Transfer Funds through RTGS/ NEFT/ ECS
Stop Payment of Cheques
Online Payment of Taxes (CBDT/ CBEC/ LOCAL Taxes)
For Corporate in addition to these, we also offer Bulk Upload Facility.

27 | P a g e

Different Business Card like

Visa Platinum Cards
Visa Gold Cards
Master Card Gift Card
Central Card
Debit Cards

Recommendations:
These facilities are same for almost every bank. The major factor which makes
the difference is the service provided by the bank employees to the customer.
Good service encourages people to use these ancillary services like internet
banking, ATMs, etc.
Bank should encourage and promote their customers to use these services as it
saves lot of time and money. People dont have to wait for long time in lines for
depositing and withdrawing money and cost of bank also get reduced. According
to survey, dealing with the customer in a bank branch cost around Rs 200 and if
the person go to ATM for these little services such as mini statement, withdrawal
and deposits then the total cost incurred to the bank is not more then Rs 20.

28 | P a g e

THIRD PARTY SERVICES

Bankassurance
With a view to provide one stop banking to the valued customers, Central Bank of
India has undertaken selling and distribution of Life Insurance Products and General
Insurance products of most trusted insurers through its branches. The Bank has tiedup with Life Insurance Corporation of India to undertake life insurance business and
Chola MS General Insurance Co.Ltd. to undertake non-life insurance as corporate
agent of both the insurance companies on fee basis without any risk participation.
Bank has trained a good number of its officers who have been authorized by IRDA to
act as specified persons for selling insurance products.
LIC has a policy for every age, a scheme for every family, a plan for every need.Be it
risk cover, provision for child's education, marriage, health care or pension, LIC has
40 plans to suit every need.
Some of the most popular plans/products are as under:
Unit linked plan
Whole life plan
Children's plan
Money back plan
Endowment
Pension
Health Insurance
Group Insurance plan
Jeevan Plus

29 | P a g e

 Bima bachat.

Chola MS General Insurance Co.Ltd.(General Insurance) products

Some of the products are as under:
Fire Insurance
Burglary Insurance
Engineering Insurance
Motor Insurance
Rural Insurance
Overseas Mediclaim Insurance
Package Insurance
Travel Insurance plan
Liability Insurance
Group personal Insurance
Group Insurance
Individual Mediclaim
These products are sold through all our branches throughout the country besides
other products of LIC of India and Chola MS General Insurance Co.Ltd
Customers may bank on us for their insurance needs too.

Mutual Funds
At Central Bank, our AMFI (Association of Mutual Funds of India) certified advisors
would help you to select the most suitable Mutual Fund schemes for your portfolio
through asset allocation strategies.
30 | P a g e

Through the selected branches of Central Bank of India you can invest in various
schemes of UTI Mutual Fund , TATA Mutual Fund , Franklin Templeton Mutual
Fund, Reliance Mutual Fund, Sundaram Mutual Fund, Kotak Mahindra Mutual Fund,
ICICI Prudential Mutual Fund, DSP Blackrock Mutual Fund, IDFC Mutual Fund, L&T
Mutual Fund and Principal Pnb Mutual Fund . All these fund houses have decent
performance record.

Recommendations:
Central Bank should market their third party policies well so that people get to
about different schemes. Private sector banks through third party services earn a
good sum on a commission basis and provide their customers with an
investment option at one point store. Central Bank has a tie up with LIC and
Chola MS Insurance. They should try to make best use out of it.
There should be proper officials hired for marketing purpose who can represent
Central Bank. At each branch, some people should be hired specifically for the
purpose of guiding the public about different products and telling what would be
best for them.
Doing advertisement of their major products through banners at crowded places
and through television advertisements so that people get to know about it.

31 | P a g e

RESULTS
When we compared our 6 banks on these four dimensions then the result came out
to be:
CBI

HDFC

ICICI

PNB

SBI

YES

0.722

0.855

0.701

0.908

0.858

0.757

Competence

0.331

0.807

0.796

0.738

0.863

0.710

Tangibles

0.496

0.724

0.787

0.842

0.735

0.796

Convenience 0.796

0.764

0.846

0.726

0.898

0.631

Customer
Orientedness

Table 28: Result of the survey by SPSS

By this result we can see that Central Bank of India is lacking in Competence and
tangibles. Competence covers response of the bank employee towards customers
problem and whether services are being delivered on time or not. Tangibles cover
the physical facilities available at branch premises.
In competence, performance of Central Bank is not that satisfactory as compared to
other banks. According to the survey, people are dissatisfied due to unusual delay in
services and response of bank employees, which is not that welcoming to general
public which in turn is creating a feeling of bitterness among them.
In tangibles, the branch premises are not that attractive as they are not properly
maintained. There should be pamphlets available in branches so that people get to
know about banks different product.

32 | P a g e

But the good point is Central Bank retail products are customer oriented. If they are
well marketed then the bank can touch heights in Agra. The bank needs to work on
two things:
Firstly improving their service by having a regular training and development program
for employees so that they learn the skill of convincing the public and
Secondly installing banners at crowded place and even in banks so that public get to
know about the products.
In YES Bank, convenience factor is lagging, as it is a bank opened 20 years back. It
is considered as the best mid sized bank but till date it has less number of branches
and ATMs. This makes its score low at that dimension.

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CONCLUSION

In this report, Marketing of Retail Products of Central Bank of India particularly in

Agra, various studies have been done. The study comprise of comparative study of
products for different banks with that of Central Bank of India. The factors in which
Central Bank was lacking are highlighted and recommendations are given.
The comparative study showing consumer behaviour was also done through a
survey. The SPSS software was applied on this excel data and through it, we got the
result of what people think about these banks. The shortcomings of Central Bank
have been shown through the result and the way of improving it also has been
recommended.

34 | P a g e

RECOMMENDATION

Deposits
CASA is one of the major source of income for Banks so almost every bank is
working on it. It is the major source of profitability. So Central Bank should focus
on it and try to have as many customers by arranging camps and awareness
programmes, where bank representatives should try to convince people and tell
them what benefits they would be having if they open their account in our bank.
Easing the process of Know your Customer so that a person interested in
opening an account dont get irritated by the tedious formalities.
Loans
The interest rates of every bank are almost same, maximum variation is of 0.5%
p.a. in that particular segment. Public Sector banks have low interest rates as
compared to private sector banks. This difference is because of the services
provided by private sector are more customer oriented.
Central Bank of India should majorly focus on NPA as this is affecting both the
profitability and provisioning of the bank. We need to keep provisioning money
separate for NPA which cant be used for other purposes.
Bank should arrange recovery camps at regular intervals so as to reduce Non
Performing Assets.
Bank should also give weightage to retail portfolio as there probability of
occurrence of NPA is less and Central bank has highly invested in commercial
sector which are not or less performing these days.

35 | P a g e

Ancillary Services
These facilities are same for almost every bank. The major factor which makes
the difference is the service provided by the bank employees to the customer.
Good service encourages people to use these ancillary services like internet
banking, ATMs, etc.
Bank should encourage and promote their customers to use these services
as it saves lot of time and money. People dont have to wait for long time in lines
for depositing and withdrawing money and cost of bank also get reduced.
According to survey, dealing with the customer in a bank branch cost around Rs
200 and if the person go to ATM for these little services such as mini statement,
withdrawal and deposits then the total cost incurred to the bank is not more then
Rs 20.
Third Party Services
Central Bank should market their third party policies well so that people get to
about different schemes. Private sector banks through third party services earn a
good sum on a commission basis and provide their customers with an
investment option at one point store. Central Bank has a tie up with LIC and
Chola MS Insurance. They should try to make best use out of it.
There should be proper officials hired for marketing purpose who can represent
Central Bank. At each branch, some people should be hired specifically for the
purpose of guiding the public about different products and telling what would be
best for them.
Doing advertisement of their major products through banners at crowded places
and through television advertisements so that people get to know about it.

36 | P a g e

According to survey
Firstly, improving their service by having a regular training and development
program for employees so that they learn the skill of convincing the public and
Secondly, installing banners at crowded place and even in banks so that
public get to know about the products.

37 | P a g e

REFERENCE

Manabendra N. Pal (2008), Exploring The Dimensionality Of Service Quality: An

Application Of Topsis In The Indian Banking Industry Asia-Pacific Journal of
Operational Research

https://www.centralbankofindia.co.in/site/indexcbi.aspx accessed on April 15, 2013.

https://www.pnbindia.in/En/ui/Home.aspx accessed on April 22, 2013.
http://www.hdfcbank.com/ accessed on April 24, 2013.
http://www.icicibank.com/index.html accessed on May 10, 2013.
http://www.sbi.co.in/ accessed on May 15, 2013.
http://www.yesbank.in/ accessed on May 20, 2013.
http://www.rbi.org.in/home.aspx accessed on May 25, 2013
http://businesstoday.intoday.in/story/best-banks-2012-indian-bankingchallenges/1/189858.html accessed on April 21, 2013

38 | P a g e

ANNEXURE
Questionnaire
Name *

Age

Bank in which you have an account *

Occupation *
Business
Service
Student
Others
YOUR BANK'S physical facilities are visually appealing. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
Materials associated with the service, such as pamphlets and statements, are visually appealing at
YOUR BANK. *
Strongly Agree
Agree
39 | P a g e

Moderate
Disagree
Strongly Disagree
YOUR BANK has convenient branch locations. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
YOUR BANK has a large ATM network. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
When you have a. problem, YOUR BANK shows a sincere interest in solving it. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree

40 | P a g e

YOUR BANK performs the service right the first time. *

Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
Employees of YOUR BANK tell you exactly when services will be performed. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
Employees of YOUR BANK give you prompt service. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
You feel safe in your transactions with YOUR BANK. *
Strongly Agree
Agree
Moderate
41 | P a g e

Disagree
Strongly Disagree
Employees of YOUR BANK are consistently courteous with you. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
Employees of YOUR BANK have the knowledge to answer your questions. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
YOUR BANK has operating hours convenient to all its customers. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
YOUR BANK has employees who give you personal attention. *
Strongly Agree
42 | P a g e

Agree
Moderate
Disagree
Strongly Disagree
Employees of YOUR BANK understand your specific needs. *
Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree

43 | P a g e