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Abstract
In this case study we are covering all the topics on IDBI bank . first the introduction of the
idbi bank . the introduction contains the very much important points which provides a clear
view of any customer towards this bank . The services provided by the idbi bank ie Net
banking, Telebanking etc. The profile of the bank it shows that how is the bank currently its
structure, its market position etc . The awards won by the bank . The bank products . The
current scenario of the bank . The mission and vision of the bank . The challenges faced by
the bank .
The objectives of the bank what is our point of view towards the bank. The management, the
effective woking of the bank, the staff of the bank, how they handles their NPA , what are the
interes rates of the banks ,the finanacial structure of the bank, the balance sheets of the past
two years and current also, the data analysis of the bank by primary and secondary data , the
questionnaire method to the branch manager and the customers the expected contribution ,the
literature reviews of the banks.
INTRODUCTION
CONCEPT AND HISTORY
IDBI Bank is an Indian government-owned financial service company, formerly known as
Industrial Development Bank of India, headquartered in Mumbai, India. It was established in
1964 by an Act of Parliament to provide credit and other financial facilities for the
development of the fledgling Indian industry.IDBI is one of the leading government bank in
India.
It is currently 10th largest development bank in the world in terms of reach, with 3000 ATMs,
1746 branches, including one overseas branch at Dubai, and 1285 centers, including two
overseas centres at Singapore & Beijing.[3] IDBI Bank is on a par with nationalized banks and
the SBI Group as far as government ownership is concerned. It is one among the 27
commercial banks owned by the Government of India.IDBI bank is considered as govt of
India owned bank.
The Bank has an aggregate balance sheet size of INR 3.28 trillion as on 31 March 2014.
History
Development Banking emerged after the Second World War and the Great Depression in
1930s. The demand for reconstruction funds for the affected nations compelled in setting up
of national institutions for reconstruction. At the time of Independence in 1947, India had a
fairly developed banking system. The adoption of bank dominated financial development
strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and
industry. Towards this end, the Reserve Bank concentrated on regulating and developing
mechanisms for institution building. The commercial banking network was expanded to cater
to the requirements of general banking and for meeting the short-term working capital
requirements of industry and agriculture. Specialised development financial institutions
(DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the
Reserve Bank were set up to meet the long-term financing requirements of industry and
agriculture
Formation of Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) was established in 1964 under an Act of
Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 1976, the
ownership of IDBI was transferred to the Government of India and it was made the principal
financial institution for coordinating the activities of institutions engaged in financing,
promoting and developing industry in India. IDBI provided financial assistance, both in rupee
and foreign currencies, for green-field projects as also for expansion, modernisation and
diversification purposes. In the wake of financial sector reforms unveiled by the government
since 1992, IDBI also provided indirect financial assistance by way of refinancing of loans
extended by State-level financial institutions and banks and by way of rediscounting of bills
of exchange arising out of sale of indigenous machinery on deferred paymentd
After the public issue of IDBI in July 1995, the Government shareholding in the Bank came
down from 100% to 75%.
IDBI played a pioneering role, particularly in the pre-reform era (196491), in catalyzing
broad based industrial development in India in keeping with its Government-ordained
development banking
.
Conversion of IDBI into a commercial bank
A committee formed by RBI under chairmanship of S.H.Khan recommended the
development financial institution (IDBI) to diversify its activity and harmonise the role of
development financing and banking activities by getting away from the conventional
distinction between commercial banking and developmental banking. To keep up with
reforms in financial sector, IDBI reshaped its role from a development finance institution to a
commercial institution. With the Industrial Development Bank
Subsequently, in September 2004, the RBI incorporated IDBI as a 'scheduled bank' under
The. Consequently, IDBI, formally entered the portals of banking business as IDBI Ltd. from
1 October 2004. The commercial banking arm, IDBI BANK, was merged into IDBI in 2005.
I
RTI
IDBI Capital Market Services Limited is a Company incorporated under
the Companies Act, 1956 at registration no. U65990MH1993GOI075578
with the Registrar of Companies, Maharashtra and has its registered office
located at 3rd Floor, Mafatlal Centre, Nariman Point, Mumbai,
Maharashtra, India 400 021.
IDBI Capital is a Financial Services Company providing various financial
services to both retail and institutional clients. The services provided by
IDBI Capital include Stock Broking-Institutional and Retail, Distribution
of Financial Products, Merchant Banking, Corporate Advisory Services,
Debt Arranging & Underwriting, Managing Client Assets-Pension/PF
fund manager, Research Services.
IDBI Capital is a member of The National Stock Exchange of India Ltd.
(NSE) on the Capital Market and Future & Options Segments and a
member of Bombay Stock Exchange Ltd. (BSE) on the Cash Market and
Derivative Segments. IDBI Capital is registered with the Securities and
Exchange Board of India (SEBI), as Portfolio Manager, Merchant Banker
and a Depository Participant of the National Securities Depository Ltd.
(NSDL).
The Company functions under the overall guidance and governance of its
Board of Directors. . The Board of Directors regulates the overall
management of the Company. For day to day smooth functioning, have
delegated their power to Managing Director and Chief Executive Officer,
who in turn delegates the same to various officials of the Company for
smooth functioning of business. The Board has also formed various
committees to oversee and monitor the functioning of various
departments in Company. Further as per power delegated to the MD &
CEO by the Board of Directors, the MD is authorized to constitute
Bank profile
IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI
Bank has essayed a key nation-building role, first as the apex Development Financial
Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter
as a full-service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI
stretched its canvas beyond mere project financing to cover an array of services that
contributed towards balanced geographical spread of industries, development of identified
backward areas, emergence of a new spirit of enterprise and evolution of a deep and vibrant
capital market. On October 1, 2004, the erstwhile IDBI Bank converted into a Banking
company (as Industrial Development Bank of India Limited) to undertake the entire gamut of
Banking activities while continuing to play its secular DFI role. Post the mergers of the
erstwhile IDBI Bank with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date:
October 1, 2004) and the subsequent merger of the erstwhile United Western Bank Ltd. with
IDBI Bank on October 3, 2006, the tech-savvy, new generation Bank with majority
Government shareholding today touches the lives of millions of Indians through an array .
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a
highly competent and dedicated workforce and a state-of-the-art information technology
platform, to structure and deliver personalised and innovative Banking services and
customised
financial
solutions
to
its
clients
across
various,channels.
As on March 31, 2014 IDBI Bank has a balance sheet of Rs.3, 28,997 crore and business size
(deposits plus advances) of Rs.4,33,460 crore. As an Universal Bank, IDBI Bank, besides its
core banking and project finance domain, has an established presence in associated financial
sector businesses like Capital Market, Investment Banking and Mutual Fund Business. Going
forward, IDBI Bank is strongly committed to work towards emerging as the 'Bank of choice'
and 'the most valued financial conglomerate', besides generating wealth and value to all its
stakeholders. IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge
core Banking IT platform. The Bank offers personalized banking and financial solutions to its
clients in the retail and corporate banking arena through its large network of Branches and
ATMs, spread across length and breadth of India. We have also set up an overseas branch at
Dubai and have plans to open representative offices in various other parts of the Globe, for
encashing emerging global opportunities. Our experience of financial markets will help us to
effectively
cope
with
challenges
IDBI Bank is the youngest, new generation, public sector universal bank that rides on a
cutting edge core banking Information Technology platform. This enables the Bank to offer
personalized banking and financial solutions to its clients. The Bank had an aggregate
Balance sheet size of Rs.3, 28,997 crore and total business of Rs.4,33,460 crore as on March
31, 2014. IDBI Bank's operations during the financial year ended March 31, 2014 resulted in
a net profit of Rs. 1121 crore.
PRODUCTS
IDBI Bank has assisted a large number of companies in India, both in infrastructure as well as in noninfrastructure space. IDBI has made a significant contribution to the growth of several companies in Power /
Energy, Roads, Ports, Airports, Urban Infrastructure, Chemicals, Fertilisers, Pharmaceuticals, Steel, Paper,
Cement, Textiles, Sugar and other sectors. Under Corporate Banking portfolio IDBI Bank provides
specialized
advisory
services
to
the
corporate
in
the
infrastructure
and
allied
sectors.
The services rendered by IDBI Bank under Corporate Banking cover Project Appraisal , Debt/Equity
Syndication, Financial / Merchant Appraisal, Corporate / Financial Advisory Services, Securitization and
structured
products,
IPO
monitoring
and
Carbon
Credit
Advisory
Services
The major focus is on developing tailor made products and solutions to meet the specific needs of clients
Project Appraisal
Syndication
Corporate Advisory
Environmental Services
1. Introduction
All corporate need large requirements of funds by way of debt and equity for timely
financial closure of their projects. IDBI Bank assists them to achieve their goals by
providing specialized Syndication services in addition to offering large number of
Banking Products. The hallmark of IDBI Banks Syndication process is that IDBI
Bank takes the role of lead bank for debts arranged by it, by financing major share of
debt in the debt programme. As IDBI Bank takes on the role of lead Bank, it always
has a positive impact on syndication process. The Bank also syndicates FC loans for
ECB requirement of corporate clients.
IDBI Bank has a full-fledged Syndication, Structuring and Advisory Department
(SSAD) through which it offers a wide range of financial services for its clients. The
Bank has been offering its debt syndication services since 2006 to various corporates
by arranging financial assistance (both term loan and Working Capital) to their
projects and operations. SSAD has a good complement of qualified and experienced
team of professionals who are taking care of the clients special needs and provide
solutions promptly. The team has been dealing transparently and takes a balanced
view on the risk perceptions of the projects.
IDBI Bank is ranked 2nd largest Mandate Arranger for debt in India for the calendar
year 2012.
Since its inception, the syndication team has concluded more than 100 deals with
aggregate debt amount over Rs.2 lakh crore. Major Industrial houses such as
Reliance, Aditya Birla, ESSAR, Vedanta, TATA, Adani, Bharati, Jaypee, Videocon
and Hindalco have reposed their faith in IDBI Banks capability to arrange debt for
their projects.
IDBI Bank has emerged as a leading player in debt syndication field and has excellent
business relationship with all the public & private banks and Financial Institutions.
The project related Information Memorandums (IM) prepared by the SSAD team are
10
well received by the participating bankers and FIs. Over the years, the Bank has
developed a good rapport with almost all banks and FIs in convincing them about the
strengths of the projects syndicated by it. Team SSAD has officers who have
specialized in the documentation requirements of the clients, who ensure that terms of
assistance a bank
. 2. Product and Services
Underwriting of debt
3. Process
The Process of Syndication is completed in the following stages:
Documentation
11
Expertise in funding medium and large scale projects for over 4 decades
All the project requirements viz. fund based, non-fund based and the services viz.
TRA account, Trusteeship etc. are offered under one umbrella
12
5. Industry Expertise
Since its inception IDBI Bank has been working closely with almost all the industries. The
long association with various industries has enabled us to develop core competencies across
industry domains. A list of industries where IDBI Bank has carried out syndication is given
under.
Telecom
Port
Airport
Roads
Power
Aviation
Oil Refinery
Shipbuilding
Retail Chain
Textiles
Steel
Cement
Aluminum
EPC Contracting
Hospitality
13
14
IPO Monitoring
Securitization
15
through the Global Environment Facility (GEF) and Ozone Trust Fund (OTF) to India for
encouraging all chiller owners to overcome barriers such as up-front capital costs and
perceived technology risks for accelerated replacement of existing CFC based energy
inefficient chillers. for the details of ICEEP.
IDBI Bank also publishes a monthly newsletter called . The magazine covers the analysis of
the pricing of Certified Emission Reductions (CERs) on spot and futures, status of CDM
project registration and various other developments happening in the carbon market,
Renewable Energy Certificate (REC) trading and Perform Achieve and Trade (PAT)
mechanism launched by the Govt. of India.
Current senario
IDBI Bank Ltd. Consolidated Pillar III Disclosures (December 31, 2014) 1. Scope of
Application and Capital Adequacy Table DF-2: Capital Adequacy The Bank maintains and
manages capital as a cushion against the risk of probable losses and to protect its
stakeholders, depositors and creditors. The future capital requirement of the Bank is projected
as a part of its annual business plan, in accordance with its business strategy. To calculate the
future capital requirements of the Bank a view on the market behavior is taken after
considering various factors such as interest rate, exchange rate and liquidity positions. In
addition, broad parameters like balance sheet composition, portfolio mix, growth rate and
relevant discounting are also considered. Further, the loan composition and rating matrix is
factored in to reflect precision in projections. In line with the Basel III guidelines which are
effective since April 01, 2013, the Bank has been calculating its capital ratios as per the
extant RBI guidelines. The main focus of Basel III norms is on the quality and quantity of
Tier I capital and these regulatory requirements are currently met with the quantum of capital
available with the Bank. At present the Bank is operating well above the minimum
requirements as stipulated by the guidelines. The Standalone CRAR position of the Bank as
on December 31, 2014 is as below:
For identification, quantification and estimation of current and future risks, the Bank has a
Board approved Internal Capital Adequacy Assessment Process (ICAAP) policy. The policy
covers the process for addressing such risks, measuring their impact on the financial position
of the Bank and formulating appropriate strategies for their containment & mitigation;
thereby maintaining an adequate level of capital. The ICAAP exercise is conducted
16
periodically to determine that the Bank has adequate capital to meet regulatory requirements
in line with its business requirements. The Bank also has a comprehensive stress test policy
covering regulatory stress conditions to give an insight into the impact of severe but plausible
stress scenarios on the Bank's risk profile and capital position. The stress test exercises are
carried out regularly based on the board approved stress testing framework and the impact of
stress scenarios on the profitability and capital adequacy of the Bank are analyzed. The
results of the exercise is reported to the suitable board level committee(s).
2. Risk exposure and assessment Table DF-3: Credit Risk: General Disclosures for All Banks
Credit risk is the risk of loss that may occur due to default of the counterparty or from its
failure to meet its obligations as per terms of the financial contract. Any such event will have
an adverse effect on the financial performance of the Bank. The Bank faces credit risk
through its lending, investment and contractual arrangements. To counter the effect of credit
risks faced by the Bank, a robust risk governance framework has been put in place. The
framework provides a clear definition of roles as well as allocation of responsibilities with
regard to ownership and management of risks. Allocation of responsibilities is further
substantiated by defining clear hierarchy with respect to reporting relationships and
Management Information System (MIS) mechanism. Banks Credit risk management policies
The Bank has defined and implemented various risk management policies, procedures and
standards with an objective to clearly articulate processes and procedural requirements that
are binding on all concerned Business groups. The Credit Policy of the Bank is guided by the
objective to build, sustain Consolidated Pillar III Disclosures (December 31, 2014) 3 and
maintain a high quality credit portfolio by measurement, monitoring and control of the credit
exposures. The policy also addresses more granular factors such as diversification of the
portfolio across companies, business groups, industries, geographies and sectors. The policy
reflects the Bank's approach towards lending to corporate clients in light of prevailing
business environment and regulatory stipulations. The Bank's Credit Policy also details the
standards, processes and systems for growing and maintaining its Retail Assets portfolio. The
policy also guides the formulation of Individual Product Program Guidelines for various
retail products. The Credit policy is reviewed annually in anticipation of or in response to the
dynamics of the environment (regulatory & market) in which the Bank operates or to change
in strategic direction, risk tolerance, etc. The policy is approved by the Board of Directors of
the Bank. To avoid concentration of credit risk, the Bank has put in place internal guidelines
on exposure norms in respect of single borrower, groups, exposure to sensitive sector,
17
industry exposure, unsecured exposures, etc. Norms have also been detailed for soliciting
new business as well as for preliminary scrutiny of new clients. The Bank abides by the
directives issued by RBI, SEBI and other regulatory bodies in respect of lending to any
industry including NBFCs, Commercial Real Estate, Capital Markets and Infrastructure. In
addition, internal limits have been prescribed for certain specific segments based on
prudential considerations. The Bank has a specific policy on Counter Party Credit Risk
pertaining to exposure on domestic & international banks and a policy on Country Risk
Management pertaining to exposure on various countries. Credit risk assessment process: The
sanction of credit proposals is in accordance with the delegation structure approved by the
Board of Directors. Credit risk rating, used by the Bank is one of the key tools for assessing
its credit proposals. The Bank has implemented internal rating model Risk Assessment
Module (RAM), a two - dimensional module for rating viz.; obligor and facility, in line with
Basel requirements. Different risk parameters such as financial, business, management and
industry are used for different rating models in accordance with the category and
characteristics of the borrower. Qualitative and quantitative information of the proposal is
evaluated by the credit risk analyst to ascertain the credit rating of the borrower. Consolidated
Pillar III Disclosures (December 31, 2014) 4 Proposals over a certain threshold amount are
rated centrally by rating analysts of the Bank. Suitable committee based approach is followed
to validate the internal credit ratings. The committees are comprised of senior officials of the
Bank. Approval of credit for retail products are guided by the individual retail product paper
guidelines and each proposal is appraised through a scoring model. In addition to the above, a
Credit audit process is in place, which aims at reviewing the loans and acts as an effective
tool to evaluate the efficacy of credit assessment, monitoring and mitigation process.
Definitions of non-performing assets: The Bank classifies its advances into performing and
non-performing advances in accordance with the extant RBI guidelines. The non performing
asset (NPA) is a loan or an advance where; Interest and/ or installment of principal remains
overdue for more than 90 days for a term loan, The account remains out of order in respect
of an Overdraft/Cash Credit (OD/CC). 'Out of order' means if the account outstanding
balance remains continuously in excess of the sanctioned limit/drawing power. In cases
where the outstanding balance in the principal operating account is less than the sanctioned
limit/drawing power, but there are no credits continuously for 90 days as on the date of
Balance Sheet or credits are not enough to cover the interest debited during the same period,
these accounts are treated as 'out of order. The bill remains overdue for a period of more
than 90 days in the case of bills purchased anddiscounted. In respect of an agricultural loan,
A CASE STUDY ON IDBI BANK
18
the interest and / or installment of principal remains overdue for two crop seasons for short
duration crops and for one crop season for long duration crops. NPAs are further classified
into sub-standard, doubtful and loss assets based on the criteria stipulated by RBI. A
substandard asset is one, which has remained as NPA for a period less than or equal to 12
months. An asset is classified as doubtful if it has remained in the sub-standard category for
more than 12 months. A loss asset is one where loss has been identified by the Bank or by the
internal / external auditors or the RBI inspection but the amount has not been written off
fully. In respect of investments in securities, where interest / principal is in arrears, the Bank
does not reckon income on such securities and makes provisions as per provisioning norms
prescribed by RBI for depreciation in the value of investments. Table DF-4: Credit Risk:
Disclosures for Portfolios Subject to the Standardised approach The Bank uses the solicited
ratings assigned by the external credit rating agencies specified by RBI for calculating risk
weights on its exposures for capital calculations. In line with the Basel guidelines, banks are
required to use the external ratings assigned by domestic credit rating agencies viz. Crisil,
CARE, ICRA, India Ratings (formerly Fitch India), Brickwork and SMERA and international
credit rating agencies Fitch, Moodys and Standard & Poors. The ratings assigned, are used
for all eligible exposures; on balance sheet & off balance sheet; short term & long term in the
manner permitted by the guidelines. Only those ratings which are publicly available and in
force as per the monthly bulletin of the rating agencies are considered. To be eligible for risk
weighting purposes, the entire amount of credit risk exposure to the Bank is taken into
account for external credit assessment. The Bank uses short term ratings for exposures with
contractual maturity of less than or equal to one year and long term ratings for those
exposures which have a contractual maturity of over one year. The process used to assign the
ratings to a corporate exposure and apply the appropriate risk weight is as per the regulatory
guidelines prescribed by RBI. In cases where multiple external ratings are available for a
given corporate, the lower rating, where there are two ratings and the second lowest rating,
where there are three or more ratings is applied. The table given below gives the breakup of
net outstanding amounts of assets in Banking Book and Non Fund Based Facilities after
Credit Risk Mitigation in 3 major risk buckets as well as those that are deducted
19
SERVICES
With the rapid digitalization that is happening around and with Internet becoming an essential
part of our routine lives, Banking on Internet Platform assumes a special significance. IDBI
Bank provides its customers, 24 hours online banking services - anytime, anywhere with its
Internet Banking.
Now, your bank has a new address. Perform all your banking transactions like Account
Information, Demat Account Information, Online instructions, Requests, Bill payments and
other merchant payments, from the comfort of your home or office.
Agreeably, such a service requires security of the highest nature and complete privacy
protection. Thus, we provide a completely secure environment, using 128-bit encryption SSL
(Secure Sockets Layer), digitally certified by VeriSign. 128-bit SSL ensures world-class
security for Internet and e-commerce transactions.
IDBI Bank Internet banking Features- Mentioned below are the products and services that are
available to you on Internet Banking.
Account Information-
20
Account balance
Account related enquiries and status
Transaction tracking and history
Loan Installments and funds flow details
Statements
Cheque status
Demat Account Details displays the name, correspondence address, account numbers and
bank account numbers associated with the account.
Holding Statements displays the list of demat scrip with ISIN code, scrip name, and
balance.
Statement of Transaction lists the transactions for a period, with details of security and
balances.
Billing statement details the charges for respective transactions.
21
Internet Banking offers online payment facility linked with merchant websites/e-shops
through its direct debit payment gateway service. The Bank offers this facility to online
merchants/service providers requiring online payment services such as e-commerce
merchants, Online Share Trading portals, an AMC selling Online Mutual Funds etc.
At the ATM
By SMS
22
Investment in Mutual funds through IDBI Bank has many benefits and we provide plenty of
privileges for our customers.
We meet your need: We believe every individual has specific needs and priorities. Your
needs could vary from buying a house, providing for your childs education, getting your
child married, and so on. All your needs are very important for us. We can help in fulfilling
your dreams by assisting you to select the schemes, which would be in consonance with your
needs.
We can be your One Stop Financial Solution: Apart from subscribing to mutual fund
schemes through us, you can also take advantage of our banking services and whole range of
23
financial products, like Saving and Current a/c, ATM card, personal loan product, depository
services, loan against units \ shares etc. and see your financial needs satisfied under one roof.
We recommend what is best for you Equity Funds: Equity funds which mainly consist of
stock investments are the most common type of mutual funds. There are various
recommended equity schemes in our bouquet of funds. The selection of these funds is based
on combination of qualitative and quantitative evaluation of the Indian Mutual Fund universe
by a reputed research agency. The selection is reviewed and revised every month. Our team
of Relationship Managers provides research based guidance, as per your individual risk
profile and requirements. We help you plan for your retirement, preserve your legacy and
manage your present and future wealth.
IDBI Banks Key Focus Plans are as followsA
SIP - Systematic Investment Plan: The Systematic Investment Plan (SIP) is a simple and
time honored investment strategy for accumulation of wealth in a disciplined manner over
long term period. The plan aims at a better future for its investors as an SIP investor gets
good rate of returns compared to a one time investor. SIP ensures averaging of rupee cost as
consistent investment ensures that average cost per unit fits in the lower range of average
market price.
With SIP one can start investing as soon as the earning is started. Investing a portion of the
income one can meet the greater expenses of life at a later stage.
Investing through SIP works with greater power of compounding with significant impact on
wealth accumulation.
Investment through SIP minimizes the effects of volatility of market over the return.
24
VES
Main advantage of ELSS is its short lock-in period of only 3 years.
Since it is an equity linked scheme earning potential is very high. It gives the investor the
option of saving tax while participating in the growth of the capital market.
Investor can opt for dividend option and get some gains during the lock-in period.
Some ELSS schemes also offer personal accident death cover insurance.
25
OBJECTIVES
26
Rationale:
-
Consumer behavior could also be used for the purpose of launching a new
product with extra benefits which are required by customers for their
account (saving or current ) and/or for their investments.
Factors which are responsible for the performance for bank can also be
used for the modification of the strategy and product for being more
profitable.
27
These all could also be interchanged with each other for each other in
banks strategies for making a final business plan to effect the market with
a positive way without disturbing a lot to market, customers and
competitors with disturbance in market shares.
HYPOTHESIS
Since this is a case study it doesnot include hypothesis
28
RESEARCH METHODOLOGY
OBJECTIVE
1. Get to know the working of the bank
2. The financial conditions of the bank
3. Good communication skills
4. The services of the banks
5. The procducts of the bank
29
SAMPLING
Sources of Primary and Secondary data:
For the purpose of project data is very much required which works as a food for process
which will ultimately give output in the form of information. So before mentioning the source
of data for the project I would like to mention that what type of data I have collected for the
purpose of project and what it is exactly.
Primary data :
Primary data was collected from the manager and employees of the banks by using
questionnaire method
Secondary data :
Secondary data for the base of project I collected from intranet of the Bank and from
internet, RBI Bulletin, Journal by ICFAI University.
30
DATA ANALYISIS
TABLE 1: PERCEPTION OF IDBI AS A BANK
TYPE OF BANK
RESPONSES
PRIVATE
50
PUBLIC
45
PRIVATE/PUBLIC
100
DON'T KNOW
55
31
RESPONSES
EFFICIENCY
75%
INTERNET BANKING/ATMs
25%
PRODUCT RANGE
95%
NETWORK
33%
PHONE BANKING
22%
33%
22%
EFFICIENCY
75%
INTERNET
BANKING/ATMs
NETWORK
95%
25%
PHONE BANKING
32
33
TABLE
3:
MARKET
SHARES
IN
MUMBAI
IN
COMPARISION
COMPETITORS
BANK NAME
% OF SHARE
SBI
30%
IDBI
15%
ICICI
25%
PNB
10%
HDFC
5%
HSBC
5%
OTHERS
10%
TO
34
% OF SHARE
PRODUCT
50%
ADVERTISMENT
5%
MANPOWER
25%
NET-BANKING
2%
PHONE BANKING
5%
INVESTMENT SCHEME
10%
NETWORK
3%
35
Mar ' 14
Mar ' 13
Mar ' 12
Mar ' 11
Income
Operating income
28,153.99
26,597.51
25,064.30
23,369.93
18,541.24
Material consumed
Manufacturing expenses
1,926.36
1,491.61
1,538.50
1,160.44
1,026.50
1,964.11
1,714.06
1,471.75
1,330.95
1,101.16
Cost of sales
3,890.47
3,205.67
3,010.24
2,491.39
2,127.66
Operating profit
1,857.42
2,815.81
2,362.87
2,053.46
2,141.66
4,007.63
2,978.75
3,219.51
2,112.18
2,143.23
Adjusted PBDIT
5,865.05
5,794.56
5,582.37
4,165.64
4,284.89
22,406.10
20,576.04
19,691.19
18,825.08
14,271.93
136.95
113.17
124.12
116.06
127.04
-16,677.99
-14,894.65
-14,232.94
-14,775.50
-10,114.08
Tax charges
413.95
619.73
1,518.51
598.09
630.67
Adjusted PAT
873.39
1,121.40
1,882.08
2,031.61
1,650.32
873.39
1,121.40
1,882.08
2,031.61
1,650.32
1,770.16
2,025.26
2,554.73
2,646.63
2,129.44
95.05
132.64
394.72
328.37
289.32
25.25
27.77
71.75
60.33
55.27
1,649.85
1,864.85
2,088.26
2,257.93
1,784.84
Expenses
Personnel expenses
Selling expenses
Adminstrative expenses
Expenses capitalised
Financial expenses
Depreciation
Other write offs
Adjusted PBT
comment
From the above data there is a stagnant improvement in the recent years
36
37
Expected contribution
1. Since there is only two branch of IDBI bank and only three atms in
Mumbai, so it is necessary for IDBI bank to open more branches and
install more atms to serve the vast market of Mumbai especially.
2. More resources should be allocated in the market of Mumbai
as
38
Literature review
Lovelock identified that secured and convineant location adequate number of ATMs
user
friendly system and functionality of ATM are the important factors of the customer
satisfaction
Based on the prior studies AL Hawari complied a list of five major items about ATM service
quality that include convineant and secured locations functions of ATM adequate no of
machines and user friendliness of the system and procedures. Most early studies found
location convineance influence most on bank selection
Khan said that the key dimension of the automated banking services quality include
reliability ease of use privacy convineance and responsiveness
Wolfinbarber and Gilly argue that reliability is the strongest predictor of customer satisfaction
Much of the researches says that there is a asssosiation between customer usages patterns and
demographic profiles
Mr Ajay bhimji in his study of technology led customer service has found that the customer
would expect security of money, growth ,safety and respectful listenng from their banks
ATMs are used no longer for dispensing money only but also offers more information and
services
In customer relationship mgmt in banking sector Dr A .Sarangapani and T mamtha ofud that
the introduction of ATM internet bankings and credit cards helps the customer to carry out the
transactions in an easy way ATM helps the transaction in an easy way.ATM helps the
customer to transact within a short time
Malazivi mentioned that the age is the main factor that determines ATM services in
Coimbatore city
39
FIELD WORK
Questionnaire to bank manager
1. When was this branch established ?
Ans. This branch was established in april 2013
2. What strategies you follow to promote your branch in market ?
Ans. Camping, advertisements, drawing compititions etc
3. What are the interest rates ?
Ans. Home loan= 10%
40
Conclusions
1. Consumers of Mumbai have good awareness level about IDBI bank as well as about
its services and products.
2. The advertising campaign has successfully been able to increase the market share of
IDBI in Mumbai.
3. The modern days technology like internet banking, phone banking, used by IDBI
bank for providing banking services has sent positive signals in the mind of
consumes.
4. The network of IDBI in Mumbai is lagging behind a little than its competitors like
ICICI bank and HDFC bank.
It can be distilled from data that IDBI bank has good market share as compared to its
competitors considering the amount of resources deployed by them in the market
41
REFERENCES
WWW.WIKIPEDIA.COM
WWW.SHODHGANDHA.COM
WWW.MONEYMARKET.COM
WWW.IDBI.COM
WWW.ECONOMICTIMES.COM