CHAPTER 1 INTRODUCTION

1.1) COMPANY INTRODUCTION

Indusind Bank derives its name and inspiration from the Indus Valley civilization - a culture described by National Geographic as 'one of the greatest of the ancient world' combining a spirit of innovation with sound business and trade practices. Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja Group, conceived the vision of Indusind Bank - the first of the new-generation private banks in India - and through collective contributions from the NRI community towards India's economic and social development, brought our Bank into being. The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honorable Prime Minister of India who was then the countrys Finance Minister, started with a capital base of Rs.1,000 million (USD 32 million at the prevailing exchange rate), of which Rs.600 million was raised through private placement from Indian Residents while the balance Rs.400 million (USD 13 million) was contributed by Non-Resident Indians.

About Indusind Bank

Indusind Bank is one of the new generation private-sector banks in India, which commenced its operations in 1994. The Bank caters to the needs of both Consumer & Corporate Clients and has a robust technology platform supporting multi channel delivery capabilities. The Bank enjoys a patronage of 2 million customers and has a network of 209 branches and 427 ATMs spread over 168

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geographical locations in 28 states and union territories across the country. The Bank also has a Representative Office in Dubai and London. The Banks total business (deposits plus advances) as on December 31, 2009 crossed Rs. 43,000 crore. The Bank is driven by state-of-the-art technology since its inception. It has multi-lateral tieups with other banks providing access to more than 21000 ATMs for its customers. It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and three major commodity exchanges in the country MCX, NCDEX, and NMCE. It also offers DP facilities for stock and commodity segments. The Bank has been bestowed with the mandate of being a Settlement Banker for tea auctions at Kolkata, Siliguri, Coonoor, Coimbatore and Guwahati. During the quarter, in a pioneering initiative in Green Banking the Bank became the first bank in Maharashtra to open a solar-power ATM. Subjects like sustainable development, social responsibility and climate change are fast becoming part of the corporate vocabulary and Indusind is at the forefront of this change in the Indian banking sector.

The Bank has been awarded the highest P1+ rating for its Fixed Deposits and Certificates of Deposit by CRISIL. Recently, CRISIL has reaffirmed its P1+ rating of Indusind Banks fixed deposits and certificates of deposit program. The rating continues to reflect the Banks established presence in the Commercial Vehicle (CV) financing business and the significant improvement in its asset quality. The rating also features in the Banks modest resource and earnings profile, and average capitalization levels.

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HIERARCHY OF AUTHORITY
AT NATIONAL LEVEL

GLOBAL CEO

INDIAN CEO

GENERAL MANAGER

NATIONAL MANAGER (Branch Banking)

NORTH REGIONAL HEAD

EAST REGIONAL HEAD

WEST REGIONAL HEAD

SOUTH REGIONAL HEAD

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AT ZONAL LEVEL

ZONE

REGIONAL HEAD

CLUSTER HEAD

BRANCH MANAGER

RELATIONSHI P MANAGER

MANAGER CUSTOMER RELATIONS

TELLER SERVICE MANAGER

INVESTMENT ADVISOR

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ORGANIZATIONAL STRUCTURE OF INDUSIND BANK

Indusind Bank follows a mix of both centralization and decentralization. It manages a balance between the two and it depend on branch to branch for deciding the degree of centralization and decentralization . Although, it has flexibility is its system of operation and no such standard operating procedures are laid out in particular, employee are expected to react and perform as per the situation and use their decision abilities to sort out customer problems. The advantage of centralization is that it lets the top official coordinate organizational activities and keep the organization focused on its goal whereas decentralization promotes flexibility and responsiveness by allowing lower managers to make on the spot decisions. Indusind Bank has a multidivisional structure varies from country to country depending on the type of operations. The integration mechanism that the bank is using in india is that of a liaison Role wherein a specific manager is given responsibilities for coordinating with managers from other subunits.

ORGANIZATIONAL CULTURE
Indusind Bank has a very rich organizational culture which is appreciated worldwide as it is ranked 8th among the survey of best places to work in, it is also listed as one of the companies wherein the attrition rate is quite low. Regarding the jaipur Branch, the employees share is very cordial relation among themselves which not only enhances the output of individuals but also has bought laurels to the branch winning the award for best branch recently. With completion of 5 year of the branch, the walk- in customers were also offered sweets as part of the banks culture.

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1.2) INDUSTRY INTRODUCTION

Although the antiquated Indian banking system has its roots in the nineteenth century , the character and structure of the system has, however, changed substantially since 1969, when the major bank were nationalized. Prior to nationalization, banking was concentrated only in urban areas. It was clear that a better banking system was needed to promote the economic goals of the new Indian state. Rural markets for Industrial goods could not be developed so long as money lenders charge high rates of interest, which was the main source of rural credit. Moreover, the green revolution depended on farmers finding substantial sources of credit to pay for fertilizers and hybrid seeds.

Since the mid-1970s, there has been a spectacular growth in the number of bank branches and in the size of their deposits and advances. According to experts in banking this transformation has no parallel anywhere in the world. After nationalization, there was also a change in recruitment policy. For the first time, the doors of the banks was opened to everyone, irrespective of family status, caste, community, religion or gender. Recruitment was done on a more systematic basis, with merit assessed by conducting aptitude tests by an external agency in a relatively impartial manner.

As the size of the banking sector increased, the industry became difficult to manage and Computer technology offered a possible solution. In India in the early 1960s, a small number of industrial houses and a few educational, research and development institutions started using computers. During the late 1960s and 1970s, service-oriented industries such as airlines, railways and insurance companies introduced computers in order to improve their functioning and to provide better customer service. However, banks in India did not introduce computers on a large scale because of the fear that these would result in retrenchment and unemployment.

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For a long time Indian banks faced very little competition and operated in a protected economy and so no long-term policy or perspective was formulated for the banking sector. Banking sector was simply treated as a part of the public sector. But now, well-computerized foreign banks are beginning to compete seriously with the nationalized banks. They target at the profitable and wealthy part of the market and, in contrast to the nationalized banks, do not recognize any social responsibilities to small account holders or to a rural and semi-urban client.

The banking and financial services Industry in India is in a state of inevitable and rapid growth. The market for banking products and services has become more competitive than ever before. With the steady fall in interest rates over the two years, customers started looking for alternate for savings and investments such as pension funds, mutual funds, life insurance products etc. Furthermore, interest margins and hence revenue opportunities have become very thin which are driving banks and financial services companies to look for lending opportunities where intrinsically the delinquency rates on loans are low and where the risk can be spread across a large base of customers. Simultaneously, a rapidly growing middle class having an enormous appetite to borrow from Banks for a better and improved lifestyle, has given banks and financial services companies an opportunity to finance the demand side of the Economy.

The multinational banks and some of the new private sector banks in the country have entered the Indian market and seized the opportunity very well. The public sector banks and the old private sector banks, who command over 80% market share in the banking industry, must seize the opportunity in a big way and respond aggressively to market demands if the growth in Retial Banking has to be accelerated in the country itself. To be successful in Retail Banking, banks will need to revamp their business model to :[7]

a. Build large volume, highly scalable operation, b. Package and deliver products rapidly in a dynamic market, c. Leverage effectively on multiple delivery channels (branch, internet, ATMs etc.) with a view to contain the cost of operations. d. Build collaborative relationships with providers of related financial products and services and move towards converting the network of bank branches into financial supermarkets.

1.3) INTRODUCTION TO BASIC BANKING

WHAT IS BANKING? Banking, in traditional sense is the business of accepting deposit of money from public for the purposes of leading and investment. These deposits can have a distinct feature of being withdraw able by Cheques, which no other financial institution can offer. In addition, banks also offer various other financial services, which include Issuing Demand Draft and Traveler Checks Credit Cards Collection of Cheques, Bills of Exchange Custodial Services The business of banking is highly regulated since banks deal with money offered to them by the public and ensuring the safety of the public money is one of the prime responsibilities of any bank. That the way the bank are expected to be expected to be prudent in their lending and investments activities. Every Bank has a compliance Department, which we responsible to ensure that all the services offered by the bank, and the processes followed are in compliance with the local regulation and the Banks corporate policy. [8]

The major regulations and acts that govern the banking business are Banking Regulations Act 1949 Foreign Exchange Management Act 1999 Indian Contract Act Negotiable Instrument Act 1881

Banks lend money either for productive purpose to individuals, firms corporate etc. for buying houses proposes to individuals and others. However banks do not finance any speculative activity. Leading is a risk taking. Having prudent norms for lending should cover the risk . The depositors of bank are also assured of safety of their money by deploying some percentage of deposits in statutory reserves like SLR & CRR.

SLR & CRR

The regulations like Banking Regulation Act and Reserve Bank of India Act govern the business of banking. It is obligatory on the part of a Bank to invest a fixed proportion known as Statutory Liquidity Ratio (SLR) of their liabilities which include time and term Deposit in certain approved government Securities. Current SLR rate is 25%. A certain proportion- know as Cash Reserve Ratio (CRR)- of the net time and demand liabilities of the bank is also to be placed Reserve Bank of India as cash reserve. This can vary between 3 to 20 percent announced by RBI. Current CRR rate is 6%. Both, SLR & CRR are subject to change by RBI and normally the changes, if any are made between RBI announce its busy season (October-March) and slack season (April-September) credit policy. The objective of CRR & SLR requirement is to minimize the risk of exposure and to make certain portion of fund available in liquid form at a point of time. Reserve Bank also uses this as a monetary tool to monitor and control money [9] supply to the economy.

The Treasury Division of a bank, being the custodian of all fund of the bank, manages and maintains CRR and SLR on regular basis. Dealers in the treasury sell and purchase securities eligible under SLR portfolio to maximize the yield on these statutory investment.

TYPES OF DEPOSITS
Bank basically offer two types of deposits: Demand Deposits Term Deposits

1. DEMAND DEPOSITS Demand Deposit by its nature, are payable as and when the depositor makes the demand to pay. There are two types of account, which are demand deposits in nature, these are: Saving Account Current Account

Any amount can be deposited at these accounts at any time. The amount deposited or apart of it can be withdrawn any time by using cheques. However bank normally stipulates a minimum balance to be maintained in these accounts.

Saving Account is offered only to individuals and non-trading entries. Banks also pay interest on saving Accounts. The interest is paid on the minimum balance held in the RBI determines the rate of interest on saving s Account.

Current Account can be opened in the name of individual any firm or a company. No interest is paid on the balance held in this account. [10]

2. TERM DEPOSITS Term deposits are the deposits where a fixed sum of money is kept for a specific period and the money is repaid only on expiry of the period. The interest offered on these deposits depends on the period of the deposit bank accepts term deposits for a [period of 15 days to 10 years. However, our bank accepts deposits for a maximum period of 5 years. Banks are free to determine the interest rates on such deposits. The interest is normally paid out of every quarter. But at the request of the customer, the interest can be paid out of every month but at the discounted rate of interest. Three most common form of term deposits are: Fixed deposits Reinvestment deposits Recurring deposits

Fixed deposits are those where the customers deposit fixed amount for a certain period and interest on it is paid by the bank every quarter. On expiry of certain terms, the principal amount is paid back to the customer or the deposit is renewed at the request of the customer.

Reinvestment deposit is similar to a fixed deposit with the difference that the interest payable every quarter is compounded with the principal amount. In effect the interest on reinvestment deposit is paid along with the principal on maturity only.

Recurring deposit is the deposit where certain amount say Rs. 1000 is deposited every monthly installment for a certain period ranging from 6 months to 5 years. The total amount deposited over the period accrued interest on maturity.

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Payment of deposit before maturity In case a term deposit is to be paid before its due date, a penal interest is charged. As per RBI guidelines, banks are now free to determine to the penal rate. However, a penal rate is advised to the customer at the time of opening an account. As per the Income Tax Act, if the total amount of all deposits of customer, including the interest on it, with a bank branch exceeds Rs. 20,000/- no deposit or any interest should be paid in cash, it can be credited in the account of the depositor.

TDS on interest earned on term deposits (other than recurring deposit) are subject to tax deduction at source if the total interest earned during the Financial Year (April- March) by the customer on his /her deposits at branch exceeds Rs. 5000.

CURRENT SITUATION OF INDIAN BANKING

Currently, banking in India is generally fairly mature in terms of supply, product range and reacheven though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak [12]

Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

INDIAN FINANCIAL SECTOR

1. Banking sector entering newer areas like wealth management, private banking, doorstep banking, business banking, excel banking, electronic banking, credit cards, investment advisory services, merchant establishment, phone banking, net banking etc. 2. Indian banks in a war game to acquire and retain customers. 3. Indian middle class being reached out and wooed by banks. 4. Indian middle class and financial sector beginning to dream together and wave a new bond of relationships. 5. Financial products like mutual funds, life policies, non life policies competing with traditional banking products. 6. Banking sector fully geared for helping Indian middle class realize its dreams. 7. Banking sector in good health with low nonperforming assets and prudential accounting standards in place.

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8. Indian banking sector entering the phase of consolidation (2nd phase of reform) on the way to acquire global size.

INDIAN RETAIL BANKING SECTOR

What Is Retail Banking? Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards, credit cards and so forth.

Today Retail Banking Sector Is Characterized By Three Features: Multiple Products Multiple Channel Of Distribution Multiple Customers Groups

Deposits Credit cards Insurance Investments securities

Call center Branch Internet Kiosk

Consumer Small business corporate

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Changing Environment
The most important factor shaping todays world is globalization. Companies are instantly in search of low-cost markets. Technology is driving growth in production and productivity and competition is stiff.

Secondly, rapid development in communication technology has lead to greater integration of global financial markets, in turn boosting private capital flows and foreign direct investment.

A third factor is the increasing share of emerging markets economies in world trade. Fallout of globalization is the increase in the volatility of markets. This calls for the adoption standards and global benchmarks.

India has adopted international prudential norms and practices with regard to capital adequacy, income recantation, provisioning requirements and supervision and these norms have been progressively tightened over the years. There has been a steady decline in the level of resources preemption from the banking system in the form of CRR (cash reserve ratio) and SLR (statutory liquid ratio). Interest rates in various segments of financial markets have been deregulated in a phased manner.

Opportunities Of Retail Banking

Retail banking has immense opportunity in a growing economy like India. As the growth story gets unfolded in India, retail banking is going to emerge a major drive. How does the world view us? A.T. Kearney, a global management consulting firm, recently identified India as the second most attractive retail destination of 30 emergent markets. [15]

The risk of the Indian middle class is an important contributory factor in this regard. The percentage of middle to high income Indian households is expected to continue rising. The younger population not only wields increasing purchasing power, but as far as acquiring personal debt is concerned, they are perhaps more comfortable than previous generations. Improving consumer purchasing power, coupled with more liberal attitude towards personal debt, is contributing to Indian banking retail segment.

Challenges
First, retention of customer is going to be a major challenge. According to a research by Reich Held and Sasser in the Harvard Business Review, 5% increase in customer retention can increase profitability by 35% in banking business, 50% in insurance and brokerage and 125% in the customer in credit card market. Thus, banks need to emphasize retaining and increasing market share.

Second, rising indebtedness could turn out to be a cause for concern in the future. Indias position, of course, is not comparable to that of the developed world where household debt as a proportion of disposable income is much higher. Such a scenario creates high uncertainty. Expressing concern about the high growth witnessed in the consumer credit segment the Reserve Bank has, as temporary measure, put in place risk containment measure and increased the risk weight from 100% to 125% in the case of consumer credit personal loans and credit cards (Midterm review of Annual Policy, 20042005).

Third, information technology possesses both opportunities and challenges. Even with ATM machines and internet banking, many consumers still prefer the personal touch of their neighborhood branch bank. Technology has made it possible to deliver services through the bank network, [16]

providing instant update to creating accounts and rapid movement of money for stock transfer. However, this dependency on the network has brought IT departments additional responsibilities and challenges in managing, maintaining and optimizing the performance of retail banking network. Illustratively, ensuring that bank products and service are available, at all times, and across the entire organization is essential for todays retail banks to generate revenues and remain competitive. Beside, there are network management challenges, whereby keeping these complex, distributed become essential. Specific challenges include ensuring that account transaction application run effectively between the branch office and data centers.

Fourth, KYC issues and money laundering risks in retail banking is yet another important issue. Retail lending is often regarded as a low risk area for money laundering because of the perception of the sums involved. However, completion for client may also lead to KYC procedures being waived in the bid for new business. Banks must also consider seriously the type of identification documents they will accept & other process to be completed.

Future Of Retail Banking 1. Share of retail credit expected to grow from 22% to 36%. 2. Dramatic changes expected in the credit portfolio of banks in the next five years. 3. Housing will continue to be the biggest growth segment followed by auto loans. 4. Banks rieed to expand and diversify by focusing on the non urban segment as well as varied income and demographic groups. 5. Rural areas offer tremendous potential to which needs to be exploited.

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MAJOR PLAYER IN RETAIL BANKING

Central Bank

Reserve Bank of India (Regulatory Bank)

Nationalized Banks

State Bank of India, Allahabad Bank, Andhra Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Oriental Bank of Commerce, Punjab & Sind Bank, Punjab National Bank, Syndicate Bank, Union Bank of India, United Bank of India, UCO Bank, IDBI Bank.

Private Banks

Axis Bank, Bank of Rajasthan, Federal Bank, ICICI Bank, Jammu & Kashmir Bank, Kotak Mahindra Bank, SBI Commercial and International Bank, South Indian Bank, YES Bank.

Foreign Banks

Citibank, HSBC, Standard Chartered, Deutsche Bank, ABN AMRO Bank, American Express Bank Ltd, DBS Bank Ltd.

Regional Banks

South Malabar Gramin Bank

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CHAPTER 2 RESEARCH METHODOLOGY

2.1) RESEARCH
Research is the process of finding out the interpretation and analysis of survey data made during the course of summer training study. It is impact of how different respondents and for which overall representation of consumer population and its impact is obtained. What is generally demanding is the basis of survey, the methods of research conduct and the necessary conclusive inferences. The following can be summarized as vital of research:-

2.2) OBJECTIVE
The objective for the basis of research was: To analyze the various financial products and services offered by various banks. On the basis of products and services offered, compare the performance of these banks with Indusind bank. According to performance, devise strategies to increase the business for Indusind bank and discover the potential market segment which may help Indusind bank to stay ahead in the competition.

2.3) PROCESS OF RESEARCH METHODOLOGY

1. Collection of data: - The data for research and necessary evidences can be obtained in the following two ways:a) Primary data: - Where the data is fresh and collected by the surveyor himself by interviewing posing direct personal questionnaire to the respondents. [19]

b) Secondary data: - where the data information can be collected through other sources which are either published sources such as magazines, books and journals and via references such as websites. 2. Interpretation of data:- After the collection of data, data is interpreted and analyzed to form necessary findings during survey and are represented graphically through charts and pies, which serves a significant portion of the summer training project. 3. Conclusion:- When the data is interpreted and analyzed we researched at the conclusion of the survey conducted, which is used to summarize the whole story of summer training and marketing survey and its analysis. 4. Questionnaire:- For the purpose of conducting fruitful survey, necessary set of questions are being drafted by the surveyor which is called questionnaire and put forth against respondent individual to get their views about the particular questionnaire aspect. Questionnaire can be either open ended or close ended. a) Open ended: - Where the respondents were asked to freely and comfortably give their views on the necessary questions put before them. b) Close ended: - Where the respondents are set limited to the choices framed by surveyor and made to select any one out of them. He cannot give open review in respect to them. 5. Sampling: - During the course of summer training random sampling is used where individuals have been collected randomly from various parts of the city and are represented as respondents. These respondents act as a major source of fulfilling and conductive in achieving the objective of the project.

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2.4) TOOLS AND TECHNIQUES USED FOR DATA COLLECTION

A structured questionnaire shall serve as the research instrument for data collection. Discussions with the different officials in Indusind bank shall provide useful inputs in the form of to achieve the objective of study.

Type of research: Exploratory research Sources of data: Primary data: Primary data are collected with the help of questionnaire, interviews and observations. Secondary data: Secondary data are collected from internet, journal and books. Sampling method: Sampling method: Judgment sampling. Sampling unit: Transporters, professionals, jewelers and customers of different banks. Sample size: Sample size collected for the study in 164 respondents, which were interviewed throughout the Jaipur city. Research location: Jaipur city Utility of the study: This study gave us an insight that at what level Indusind bank has its reach to the general public. This study will help to know the current business potential for the bank. There is tough [21]

competition throughout Jaipur. Public interaction helped us to know what products and services they want.

2.5) LIMITATIONS OF RESEARCH

Sample size was very small, and area of research was restricted to Jaipur only. so it cannot give a fair result. Data collected cannot be reliable and accurate. Gathering and processing data can be very expensive. The collection of data can take a longer time. Some ethical and legal constraints related to security of data.

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CHAPTER 3 FINANCIAL PRODUCTS AND SERVICES OF INDUSIND BANK

3.1) SAVING ACCOUNT

Savings bank accounts are meant to promote the habit of saving the citizens while allowing them to use their funds when required. This is a type of account primarily opened for and operated by individuals, wherein the number of transaction is few and which gives the customer liquidity with the facility to earn some interest on the residual balance.

Purpose and description

Saving account is a transaction account wherein a deposit is placed with bank for an un specified period of time. The depositor can withdraw the money when ever is required through any of the following means: 1. Withdrawal slip 2. Cheques 3. Transfer through an ATM or debit card 4. Standing instructions 5. Remittances

Interest paid
Interest is determined in accordance with directives of the reserve bank of india . Interest is calculated on the minimum credit balance between the close of the business on the 10th and the last day of each calendar month. Interest is paid on quarterly rests. [23]

Eligibility Individuals Trust\ societies\charitable organizations HUFs (for individuals for the sole purpose of savings & not for the purpose of business) Resident Indians Foreign Nationals.

Product Features
Account can be in sole name or joint names Non- maintenance of a ledger fees depending upon the type of account. Transaction oriented account: Mode of transaction through cheque books,ATM Card or Debit card. Accounts can be operated at any of the Indusind Bank branches across the country, 365 days a year from 10 A.M 7 P.M. Account can be accessed through the internet. Phone banking and Doorstep banking services.

Facilities Available
Statement of account at any desired frequency: Quaterly Monthly Weekly Daily Option of not availing the facility. Demand draft / Pay orders at nominal charges. Local and outstation clearing [24]

Standing instructions To make regular recurring payments Instant transfer of fund between an account in one branch and a self styled account in another.

Power of attorney to operate the account can be given to the third party. Stop Payment of cheques. Personalized Cheque book and multicity cheque books. The option of a picture or photo debit card along with an add-on card. Issuance of travelers cheques Special services like Bankers Report , Signature Verification, Certificate of balance or balance or interest foreign Inward Remittance Certificate available.

Minor Saving Account

Account is opened in the name of minor. Guardian has to be a co-holder. Account can be clubbed with all other accounts of the guardian for taxation purposes. Converted to a normal saving account once the minor attains majority (18 years)

SAVINGS ACCOUNT OF INDUSIND BANK:

1. Classic savings account 2. Privilege savings account 3. Privilege Plus Savings account

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SCHEDULE OF CHARGES OF SAVINGS ACCOUNT

PARTICULARS

Classic Savings account

Privilege Savings Account

Rs 10,000 (AQB)

Privilege Plus Savings account

Rs 50,000 (AQB)

Minimum balance requirement

Rs 5000 (AMB)

Quarterly fee

NIL

NIL

NIL

Account maintenance charges:

If AQB<Rs.250 If AQB<Rs.5000 If AQB>=Rs.5000&<Rs.7000 If AQB>=Rs.7500 &< Rs.10000

General charges:
Account statements Passbook Free Free Free Free Free Free

Cheque book:
Local cheque book (Rs.50 on account where AQB has not been maintained in last quarter) Free Free Free

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Muiticity cheque book

Free

Free

Rs. 9 per leaf

ATM usage:
INDUSIND BANK ATMs Other Visa ATMs(Free for first 5 transactions) Visa ATMs outside India Balance enquiry Rs 20 Rs.140 Free Rs 20 Rs.140 Free Rs 20 Rs.140 Free Free Free Free

ATM Cards:
First year fee Annual fee (Per card) NIL NIL NIL NIL NIL NIL

Shop Smart Debit Cards:

First year fee Annual fee Rs. 200 Rs. 200 Free Free Rs. 200 Rs. 200

Gold Debit Cards:

Annual fee Rs. 799 Rs. 799 Rs. 799

Lost card issuance:

ATM Shop smart debit card Gold debit card Replacement of pin Rs.100 Rs.200 Rs.799 Rs.50 Rs.100 Rs.200 Rs.799 Rs.50 Rs.100 Rs.200 Rs.799 Rs.50

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Charges if AQB is less than Rs.10.000:

Cash withdrawal/deposit Pay order/DD Rs.50 Rs.50 Rs.50 Rs.50 Free

Other Charges:
Phone Banking (Annual fee) Internet Banking (Annual fee) Cash Deposit charges Free Free Free Free Free Free

Duplicate Statement:
Statement up to 3 month old Statement more than 3 month Month old Rs.100 Rs.150 Rs.100 Rs.150 Rs.100 Rs.150

Stop payment:
Single cheques Range of cheques Rs.100 Rs.200 Free Free Rs.100 Rs.200

Cheque return:
Check issued by customer Check deposited by the customer Rs.300 Rs.100 Rs.300 Free Rs.300 Rs.100

ECS Service:
If issued by the customer and returned unpaid Dormant accounts Rs.1000 [28] Rs.1000 Rs.1000 Rs.250 Rs.250 Rs.250

Account closure:
Within six month from the date of opening Rs.200 Rs.200 Rs.200

Remittance from abroad:

Signature verification

Rs.250 Rs.25

Rs.250 Free

Rs.250 Rs.25

3.2) CURRENT ACCOUNT OF INDUSIND BANK

Current account is primarily meant for businessmen, firms , companies , public enterprises etc that have numerous daily transaction. Current account is opened for & operate by individuals or firms, wherein the number of transactions is more than a saving account and which gives the customer liquidity. No interest is paid on the balances held in this account. In a current account , a customer can deposit any amount of money any number of times. A customer can withdraw any amount aas many times as he wants as long as he funds to his credit.

Purpose and Description

Current account is a transaction account wherein a deposit is placed with the bank to perform day to day transactions. The depositor can withdraw the money whenever required through any of the following means : 1. Withdrawal slip 2. Cheques 3. Transfer through an ATM or debit card 4. Standing instructions 5. Remittances [29]

Product Features
Account can be in sole name or joint names. Non-maintenance of aledger fees depending upon the type of account . Transaction oriented account : Mode of transaction through cheque books, ATM card or debit card. Account can be operated at any of the standard chartered branches across the country , 365 days a year from 10 am 7 pm. Account can be accessed through the internet. Phone banking and Doorstep banking Services.

SCHEDULE OF CHARGES OF CURRENT ACCOUNT PARTICULAR Indus Blue

Minimum balance requirement General charges: Account statements Pass book Cheque book: Cheque book Issuances(Payable at par 50 leaves) Free Free 2 book Free 1 book Free per month per month 1 book Free per month Free Free Free Free Free Free Free Free Free Free 10000 (AMB)

Indus silver
25000 (AMB)

Indus Gold
50000 (AMB)

Indus Plus
1,00,000 (AMB)

Indus Prestige
5,00,000 (AMB)

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Cheque book charges ATM usage: Indusind ATMs Other Visa ATMs (Free for first transactions) Visa ATMs outside India Balance Enquiry ATM cards: First year fee Annual fee Shop smart debit cards: First year fee Annual fee Gold debit cards: Annual fee Lost card issuance: ATM Shop smart debit card Gold debit card Other Charges: Phone Banking (Annual fee)

NIL

NIL

NIL

NIL

NIL

Free Rs.20

Free Rs.20

Free Rs.20

Free Rs.20

Free Rs.20

Rs.125

Rs.125

Rs.125

Rs.125

Rs.125

Free

Free

Free

NIL NIL

NIL NIL

NIL NIL

Rs.200 Rs.200

Rs.200 Rs.200

Rs.200 Rs.200

Rs.799

Rs.799

Rs.799

Rs.100 Rs.200 Rs.799

Rs.100 Rs.200 Rs.799

Rs.100 Rs.200 Rs.799

Free

Free

Free

Free

Free

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Internet Banking (Annual fee) Account Closure: Within six months from the date of opening

Free

Free

Free

Free

Free

Rs.200

Rs.200

Rs.200

Rs.200

Rs.200

3.3) CREDIT CARDS

The Gold card offered by Indusind Bank is not less than a credit card. It provides special deals at various restaurants, travel benefits and many more privileges. Unique features:Some of the exclusive benefits availed by a Gold Card member : Privilege access to Airport Lounges : The Gold Card of Indusind Bank ensures the entry of its holder into exclusive airport lounges in Delhi, Chennai and Kolkata including complimentary non-alcoholic beverages and snacks.

Global Acceptance
The Gold Card is the most widely accepted credit card in over 19 million VISA and Mastercard establishments worldwide and over 1.1 lac establishments in India and Nepal.

Balance Transfer Option

The Gold Card helps its holders to transfer the outstanding balance from any other credit card to the Standard Chartered global credit card at a special rate lower than the 2.95% p.m. which is the current rate. [32]

Revolver Facility
The revolver facility of Gold Card allows payment of just 5% of the outstanding amount on the card every month

Cash Advance Facility

The cash advance facility provides 24-hour access to cash upto 30% of the credit limit at 850,000 ATMs worldwide and 6500 ATMs all over India.

Doorstep Facility
Convenience of facilities at the doorsteps of customers. Both pick up and drop facility.

Picture Card
A picture that is close to the heart of the customer can be used to make the card as unique as he want it to be.

Photo Card
It can be a measure to safeguard the credit card by opting for a Photo Card

Zero Lost Card Liability

In case the card is lost, the customer can avail the benefit of the Zero Lost Card Liability.

[33]

Credit Free Period

The Gold Card provides credit free period of upto 52 days. 24 hour Help-lines. A customer can use to help-lines for any queries 24/7.

Cheque collection boxes

Payments can be made on Indusind Bank Credit Card conveniently by placing the cheques at cheque collection boxes across centers.

Airline/Railway counters
The Indusind Bank Credit Card can be used to purchase railway/airline tickets online or at railway & airline counters and gives access to exclusive airport lounges.

Instant Buys
A customer can pay in easy installments for high value purchases on the credit cards at attractive rates of interest.

Rewards Plus Program

One reward point is awarded on every Rs.100 spent on Indusind Bank credit card which can be exchanged for attractive gifts.

Travel Cash Back

International air tickets which are purchased through Carlson Wagonlit/BTI Sita gives a special cash back offer. [34]

INDUSIND BANK FOR NRI NRI products

Opening of accounts in the name of Non Residents is subject to Exchange Control Regulations. However, authorized banks can freely open accounts in the name of Non Resident Indians. A non-resident Indian is an Indian citizen who is residing abroad for an indefinite period for the purpose of employment, business or other purposes. Non-Resident Indians can open the following accounts in Indusind Bank:

Non Resident Ordinary Account (NRO)

This is like any other resident account, which is maintained in Indian Rupees.It can be opened as a savings or a current account, but the credits allowed can only be in Indian Rupees (INR). Thus, the customer has the convenience of having an account to credit all his income earned out of policies out of-reparitable investments. He can also use this account of outgoing payments like monthly installments. The Interest earned on the funds in this account is repartiable.

Now Resident External Account (NRE)

This account is the best solution for NRIs wanting to hold rupee deposits as it offers a dual advantages : They can freely access their funds. This can freely access their funds in rubibf Rupees while in India.n Rupees while in INDIA. They can convert the same funds into foreign currency and repatriate it abroad any time they wish, this means that the interest along with the principle is fully repatriable. Only foreign currency credits are allowed in this account which are converted in to INR [35]

Forgien currency Nonresident account (FCNR )

This is opened in four designated currencies it is a better option for holding term deposit in foreign currency in India. The vital feature of this deposit is that the savings are protected against fluctuations in the interest rate. So, NRIs can safely invest in US Dollars, Pound, Japanese Yen and Euro. The principle and the interest are completely repatriable.

FIXED DEPOSITS
These are the deposits which are made by the customers who are not ready to take risks in order to get good returns. On FDs, a fixed rate of interest is given to the customers on the amount deposited by them. There is no loss or gain according to the market trends because the rate of interest is fixed and decided at the time of opening of FD. Indusind Bank has a wide variety of options to suit different needs, including Short Term Deposit, Reinvestment Deposit, and simple Fixed Deposit which can be opened by: Individuals Proprietors Partnership and limited companies Societies Clubs and associations HUFs.

Features of the FD of Indusind Bank are: Tenor ranges from 15 days to 5 years (For deposits of Rs. 15 Lakhs and above, minimum tenure is 7 days) Options of simple interest and compound interest [36]

Overdraft facility available against deposit Overdraft facility available against deposits of Rs. 15 Lakhs and above.

Interest rate for term deposits in Indusind Bank as on August 2010:

TENURE

INTEREST RATE % P.A. (Below Rs.15 Lacs)

INTEREST RATE % P.A. (Rs. 15 Lacs to 100 Lacs)

7-14 days 15-29 days 30-45 days 46-59 days 60-89 days 90-179 days 180-269 days 270 days to 1 year Above 1 year to below 2 years 2 years to below 3 years 3 years to below 5 years 5 years and above

2.75% 3.00% 3.50% 4.00% 4.50% 5.50% 6.25% 6.50% 7.25% 7.50% 7.75% 7.75%

2.75% 3.00% 3.50% 4.00% 4.50% 5.50% 6.25% 6.50% 7.25% 7.50% 7.75% 7.75%

[37]

3.4) FINANCIAL SERVICES OF INDUSIND BANK Net banking:

Net banking is the way to carry out the banking transactions through internet. The need for a branch is completely eliminated by technology. This helps in serving the customers better in a better manner and tailoring products better suited to the customers. The customers can view their account details, transaction history, order drafts, electronically make payments, transfer funds, account position and can electronically communicate with the bank through for which he had to visit the bank branch. Net banking is absolutely free, easy, and secure, allowing accessing most bank services and a host of features. Online banking provides a range of services at the finger-tips. Account information Funds and payments Inter bank fund transfer Investment services Credit card services Online applications Personal update Personal mailbox. The six primary drivers of internet banking are: Improve customer access Facilitate the offering of more services Attract new customers Provide services offered by competitors Reduce customers attrition. [38]

Phone banking:
Phone banking helps to carry out the banking transactions through telephone. Customers can call up the banks help line or phone banking number to conduct transactions like transfer of funds, making payments, checking of account balance, ordering cheques, etc. This also prevents the customer to visit the banks branch and saves their valuable time and money. It is a service that enables to access financial information and services 24 hours a day, 7 days a week. Phone banking avails. Check account balance. Get details about specific instructions. Inquire about the status of a particular cheque. Order demand drafts. Stop a cheque or a series of cheques. Transfer funds among linked accounts. Ask for a statement of a account or a cheque book. Change deposit tenure. Get information on deposit rates, lending rates, exchange rates and banking charges. Make complaints and suggestions. Access any information in SCBs products and services.

Mobile banking:
Indusind bank provides the information to the customers about certain transactions related to their accounts through mobile phone with the help of latest technologies like WAP , SMS ,etc.

[39]

Information regarding any transaction done in the account is being sent to the customer through SMS banking so that the customer can be aware of all the transaction in order to prevent money laundering. This service helps the bank to combine internet and telephone leverage it to cut costs and at the same time provide its customers, comfort and convenience. It can also be seen that tech-savvy banks are tapping the entire above alternative channels to cut costs and to increase customer satisfaction.

Doorstep banking:
This facility is available on accounts in which the average quarterly balance (AQB) is Rs. 1 Lakh. Doorstep banking is the facility in which the customers are not required to come to the bank and deposit or withdraw the money or cheques. The executives, from the bank collect the money or cheque from the place of customers for the purpose of depositing it in the bank. This facility helps the customers to save their valuable time.

[40]

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

SECONDARY DATA ANALYSIS

4.1) COMPARATIVE ANALYSIS OF BANKING SERVICES OF INDUSIND BANK AND OTHER MULTINATIONAL BANKS
Table 4.1

S. NO.
1.

BANK SERVICES
Branches

INDUSIND ABN-AMRO CITIBANK BANK

68 (Metros) & 83 (India) 17 (Metros) & 19 (India) 25 (Metros) & 35 (India)

HSBC

30 (Metros) & 39 (India)

2. 3. 4. 5.

ATMs ATM/Debit Card Charges for ATM card ATM/Debit Card access to other banks

165 Yes Rs. 200 p.a. Yes

78 Yes Rs. 200 p.a. Yes

376 Yes Rs. 100 p.a. Yes

158 Yes Rs. 150 p.a. Yes

6.

Charges per transaction from ATMs of other banks

4 Transaction free/month and then Rs. 20 per [41]

2 Transaction free/month and then Rs. 40 per

Rs. 50 per transaction

Rs. 50 per transaction

transaction 7. Locker facility Yes, Rs. 2000 p.a. 8. 9. 10. 11. Cheque deposit boxes Global Debit Card Global Credit Card Average banking hours 12. 13. Sunday banking Minimum balance saving 14. Charges for nonmaintenance of minimum balance 15. Cash withdrawal per day 16. Cash transaction from non-branch 17. 18. 19. 20. Statement charges 24 hours branch 365 days branch Automated cheque recorder 21. Multicity branch Yes [42] Free Yes Yes Yes Yes 25,000 Rs. 750 per quarter No 10,000 Yes Yes Yes 10 AM-7 PM

transaction Yes Yes Yes

Yes Yes Yes 10 AM-7 PM

Yes Yes Yes 10 AM-2 PM

Yes Yes Yes 9 AM-4 PM

Yes 10,000

Yes 10,000

No 10,000

Rs. 200 to Rs.1800 per month 25,000 1,00,000 Yes

Rs. 250 per month

Rs. 300 per quarter

50,000

25,000

Yes

Yes

Free No Yes No

Free No Yes No

Free No No Yes

Yes

Yes

Yes

banking 22. 23. 24. 25. 26. 27. 28. 29. National clearing Speed clearing Net banking Mobile banking Phone banking DMAT Priority banking Flexibility of interest rate 30. 31. Doorstep banking Cash delivery Yes Yes(charged) Yes Up to 1 lakh free & above charged 32. 33. Cash pick up Cheque pick up Yes(charged) Yes Yes(charged) Yes Yes(charged) Yes Yes(charged) Yes Yes Yes(charged) Yes Yes(charged) Yes Yes Yes Yes Yes Yes Yes Yes Yes(3-5 days) Yes Yes Yes Yes Yes Yes No Yes(7-15 days) Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes

Explanation:1. Most of the branches of multinational banks are concentrated in the metros. The branches of Indusind bank are comparatively more than ABN- Amro, Citibank and HSBC bank. But ATMs of Citibank are higher. 2. Almost every bank provides ATM cards to their customers to make banking more easier. Customers do not have to visit the banks for deposits and withdrawals. ATM service can be

[43]

accessed through other banks as well. Few banks provide this facility free of cost while others have the charges for it. All the banks mentioned above have their respective charges. 3. Locker facility is chargeable under Indusind bank at Rs. 2000 p.a. but in other banks this facility is offered free of cost. 4. The average quarterly balance is Rs. 10,000 for all the four banks. If the customer is not maintaining this minimum balance there are charges for non maintenance. 5. Bank statements are available free of cost. 6. Cash withdrawal per day for Indusind bank is the lowest at Rs. 25,000 while for ABN-Amro it is the highest and ranges from Rs. 25,000 to Rs. 1,00,000. 7. Doorstep banking is a new facility which was first introduced by Indusind bank and is now used by almost every bank. Banks have their respective pickup and drop charges. 8. Multibranch banking, phone banking, mobile banking, internet banking, national clearing and speed clearing facilities are provided by all the four banks.

4.2) COMPARATIVE ANALYSIS OF BANKING SERVICES OF INDUSIND BANK AND PRIVATE & PUBLIC SECTOR BANKS
Table 4.2

S. NO.
1.

BANK SERVICES
Branches

INDUSIND BANK

ICICI

HDFC

AXIS

IDBI

68 (Metros) & 158 (Metros) 194 (Metros) 96 (Metros) 43 (Metros) 83 (India) & 508 (India) & 446 (India) & 247 (India) & 120 (India)

[44]

2. 3. 4.

ATMs ATM/Debit Card Charges for ATM card

165 Yes Rs. 200 p.a.

1910 Yes Rs. 99 p.a.

1147 Yes

1599 Yes

329 Yes

Rs. 100 p.a. Rs. 150 p.a. Rs. 100 p.a.

5.

ATM/Debit Card access to other banks

Yes

Yes

Yes

Yes

Yes

6.

Charges per transaction from ATMs of other banks

4 Transaction free/month and then Rs. 20 per transaction Yes, Rs. 2000 p.a.

Rs. 50 per transaction

Rs. 50-100 per transaction

Rs. 50 per transaction

Rs. 50 per transaction

7.

Locker facility

Yes, Rs. 750 p.a. Yes

Yes

Yes

Yes

8.

Cheque deposit boxes

Yes

Yes

Yes

Yes

9.

Global Debit Card

Yes Yes 10 AM-7 PM

Yes Yes

Yes Yes

Yes Yes

Yes Yes

10. Global Credit Card 11. Average banking hours 12. 13. Sunday banking Minimum balance saving 14. Charges for nonmaintenance of

9 AM-4 PM 10 AM-4 PM 10 AM-4 PM 10 AM-4 PM

No 10,000

No 5,000

Yes 5,000

No 5,000

No 5,000

Rs. 750 per quarter

Rs. 300 per quarter [45]

Rs. 150-500 Rs. 200 per per month month

Rs. 100 per quarter

minimum balance

15.

Cash withdrawal per day

25,000

15,000

15,000

20,000

25,000

16.

Cash transaction from non-branch

Yes

Yes

Yes(up to 1,00,000)

Yes(up to 1,50,000) Free No No No

Yes(up to 50,000) Free No No No

17. 18. 19. 20.

Statement charges 24 hours branch 365 days branch Automated cheque recorder

Free Yes Yes Yes

Free No No No

Free No No No

21.

Multicity branch banking

Yes

Yes

Yes

Yes (selected cities)

Yes

22. 23. 24. 25. 26. 27. 28. 29.

National clearing Speed clearing Net banking Mobile banking Phone banking DMAT Priority banking Flexibility of interest rate

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes No Yes Yes

30.

Doorstep banking

Yes

Yes [46]

Yes

Yes(for

Yes(for

selected customers) 31. Cash delivery Yes (charged) 32. Cash pick up Yes (charged) 33. Cheque pick up Yes Yes (charged) Yes (charged) Free once a month Yes (charged) Yes (charged) Yes (charged) Yes (charged) Yes (charged) Yes (charged)

selected customers) Yes (charged) Yes (charged) Yes (charged)

Explanation:1. The branches of private sector banks are spread all over India and is not concentrated only in the metro cities. 2. The number of ATMs of private sector banks are comparatively higher than that of multinational banks. Banks have charges for the ATM cards and ATM services of other banks can be assessed by paying an amount. 3. Locker facility is provided by all the banks. Its chargeable under ICICI bank but is provided free of cost by the remaining banks. 4. Banking hours of all the four banks are almost the same. No 24 hours banking is provided by any of the banks and only HDFC bank provides banking on Sundays. 5. Minimum balance for saving account for all the banks are Rs. 5,000 and there is a charge for non- maintenance of this balance. 6. Cash transaction from other banks can be done by customers of all the four banks.

[47]

7. National clearing, speed clearing, mobile banking, phone banking, internet banking and multicity branch banking is provided by all the banks. But the AXIS bank has multicity branch banking facility only in selected cities. 8. Priority banking is available under all the banks. 9. Doorstep banking is provided by all the banks but AXIS and IDBI provide this facility only to priority banking customers. All the banks have charges for cash pick up, cheque pick up and cash delivery.

[48]

4.3) PRIMARY DATA ANALYSIS

DEMOGRAPHIC ATTRIBUTION

a) Age
Table 4.3 Age Cumulative Frequency Valid Below 20 years Between 20 and 40 years Between 40 and 60 years Above 60 years Total 15 26 40 19 100 Percent 15 26 40 19 100 Valid Percent 15 26 40 19 100 Percent 15 41 81 100

Figure 4.1

Below 20 years 19% 15% 26% 40% Between 20 and 40 years Between 40 and 60 years Above 60 years

From the above analysis, I can analyze that normally people in the age group 20-60 maintain their relations with multinational or private sector banks. While, people in the age group of below 20 years & above 60 years are somewhat indifferent. [49]

2. OCCUPATION
Table 4.4 Occupation Frequency Valid Student Service Business Other Total 13 47 36 4 100 Percent 13 47 36 4 100 Valid Percent 13 47 36 4 100 Cumulative Percent 13 60 96 100

Figure 4.2 4% 13% 36% Student Service 47% Business Other

From the above figure, we can analyze that the major proportion of the customers of the multinational banks and the private sector banks are from the service class and the business class. So the potential market segment of the customers of the various banks comprises of the services and the business class.

[50]

3. ANNUAL INCOME
Table 4.5 Annual income Frequency Valid Dependent Below 2 Lakh Between 2-5 Lakh Above 5 Lakh Total 13 11 44 32 100 Percent 13 11 44 32 100 Valid Percent Cumulative Percent 13 11 44 32 100 13 24 68 100

Figure 4.3

32%

13% 11% Dependent Below 2 Lakh 44% Between 2-5 Lakh Above 5 Lakh

From the above results, it can be analyzed that people whose income is above two lakhs normally go for relations with multinational banks or some private sector banks. While people who are dependent prefer public sector banks.

[51]

FACTORS AFFECTING THE BANKING HABITS OF PEOPLE The banking habits were studied on the basis of six features included in the questionnaire. The respondents were asked to rate each of these features on a scale of five factors namely lowest, low, average, high and highest. The following results were obtained for each of these factors.

1. Location
Table 4.6 Location Frequency Valid Average High Highest Total 11 50 39 100 Percent 11 50 39 100 Valid Percent 11 50 39 100 Cumulative Percent 11 50 100

Figure 4.4

Location
50 50 39 40 30 20 10 0 Average High Highest 11 Location

From the above figure , it can be said that people normally rated the factor Location as high. Thus it can be concluded that location is one of the most important factor for people while choosing a particular bank. [52]

2. Ambience
Table 4.7 Ambience Frequency Valid lowest low Average High Highest Total 3 8 51 34 4 100 Percent 3 8 51 34 4 100 Valid Percent 3 8 51 34 4 100 Cumulative Percent 3 11 62 96 100

Figure 4.5

Ambience
60 50 51 34 Ambience 3 8

40
30 20 10 0

From the above figure, It is a pretty clear that people rate the factor ambience as average or high. The reason behind rating this factor as normally average is that people told that they hardly have the time to go to the bank. Through, it does have an effect on people but is not of much importance to them so they rated it as average. [53]

3. Timings
Table 4.8 Timings Frequency Valid lowest low Average High Highest Total 1 4 58 36 1 100 Percent 1 4 58 36 1 100 Valid Percent 1 4 58 36 1 100 Cumulative Percent 1 5 63 99 100

Figure 4.6

Timings
60 50 40 30 20 10 0 lowest low Average High Highest 1 4 1 36 Timings 58

From the above figure, it is evident that the factor timings is rated as average by people. Many people rated this factor as average because they think that all the banks have the same timings. Therefore it is not of much importance to people while choosing particular bank.

[54]

5. Products offered
Table 4.9 Product offered Frequency Valid
low

Percent 17 64 17 2 100

Valid Percent 17 64 17 2 100

Cumulative Percent 17 81 98 100

17 64 17 2 100

Average High Highest Total

Figure 4.7

Product Offered
70 60 64

50
40 30 20 10 0 low Average High Highest 17 17 2 Product Offered

From the above figure, it is evident that the factor prodects offered is rated as average by people. Many people rated this factor as average because they think that all the banks offer the same kind of products. Therefore it is not of much importance to people while choosing particular bank.

[55]

6. Information
Table 4.10 Information Frequency Valid Average High Highest Total 15 74 11 100 Percent 15 74 11 100 Valid Percent 15 74 11 100 Cumulative Percent 15 89 100

Figure 4.8

Information
80 70 60 50 40 30 20 10 0

74

Information

15

11

Average

High

Highest

Most of the respondents rated this factor as high. The reason behind such rating was that most of the respondents felt that they were not provided with the right information about the products. So they wanted that they should be provided with the right information and should not be deceived.

[56]

7. Service
Table 4.11 Service Frequency Valid Average High Highest Total 1 40 59 100 Percent 1 40 59 100 Valid Percent 1 40 59 100 Cumulative Percent 1 41 100

Figure 4.9

Service
59 60 50 40 Service

40
30 20 10 0 Average High Highest 1

This factor was rated by the respondents as the highest. Almost every respondent rated Service as highest they felt that once they use any product of a bank then the services which are provided along with the product effect the relationship of the customers with that particular bank. On the basis of the results obtained from the survey it can be clearly stated that Service is the most important criteria for choosing a bank.

[57]

Are you satisfied with the services that your bank is providing? 1. Public Sector Banks
Table 4.12 Public sector banks Response Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied Total Respondent Percentage 12 21 15 10 58 20% 36% 25% 19% 100%

Figure 4.10

Very Satisfied
19% 25% 36% somewhat Dissatisfied Very Dissatisfied 20% Somewhat Satisfied

During survey it was found that 36% customers of the PSUs were somewhat satisfied with their services. And 19% were dissatisfied reason slow process of banks, long queue, attitude of employees and personal attention.

[58]

2. Private Sector Banks

Table 4.13 Private sector banks Response Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied Total Respondent Percentage 19 15 10 8 52 36% 28% 20% 16% 100%

Figure 4.11

16% 36% 20%

Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied

28%

36% customers of the private banks are very satisfied with their services. Only 16% were classified and the reasons were poor knowledge of the employees, higher charges, hidden charges and most of them said that they never get intimation calls whenever balance reduces from the minimum level. For increasing the satisfaction level private banks must reveal all the information to the customers. Intimation through SMS or phone calls whenever minimum amount reduces from the prescribed limit.

[59]

3. Cooperative Banks
Table 4.14 Cooperative banks Response Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied Total Respondent Percentage 18 14 5 3 40 45% 34% 13% 8% 100%

Figure 4.12

8%
13% 45%

Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied

34%

45% of the customers are very satisfied due to their fast services. Main reason of their attraction is their timings. Some banks have evening timing too. 13% are somewhat dissatisfied because of their poor network and services are not commensurate with private sector banks.

[60]

4. Foreign Banks
Table 4.15 Foreign banks Response Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied Total Respondent Percentage 8 3 2 1 14 54% 23% 14% 9% 100%

Figure 4.13

9% 14% 23% 54%

Very Satisfied Somewhat Satisfied somewhat Dissatisfied Very Dissatisfied

54% customers of the foreign banks are very satisfied with their services. Only 9% were dissatisfied and the reasons were poor knowledge of employees, higher charges, hidden charges and most of them said that they never get intimation calls whenever balance reduces the minimum level. For increasing the satisfaction level foreign banks must reveal all the information to the customers.

[61]

RATING OF BANKS 1. Indusind bank

Table 4.16 Indusind Bank Frequency Valid Low Average High Highest Total 3 32 50 15 100 Percent 3 32 50 15 100 Valid Percent 3 32 50 15 100 Cumulative Percent 3 35 85 100

Figure 4.14

Percent Frequency
50
50

40
30 20 10 0 3

32 15

Percent Frequency

Indusind bank is normally rated by people as high which means that people keep a good opinion about Indusind bank.

[62]

2. Yes bank
Table 4.17 Yes Bank Frequency Valid Average High Highest Total 38 60 2 100 Percent 38 60 2 100 Valid Percent 38 60 2 100 Cumulative Percent 38 98 100

Figure 4.15

Percent Frequency
60 60 50 38 40 30 20 10 0 Average High Highest 2 Percent Frequency

From the above data it can be stated that Yes bank also has a good reputation among multinational banks as it has been rated by most of the respondents as an above average rank.

[63]

3. Axis Bank
Table 4.18 Axis Bank Frequency Percent Valid Average High Highest Total 30 66 4 100 30 66 4 100 Valid Percent 33 66 4 100 Cumulative Percent 30 96 100

Figure 4.16

Percent Frequency
70 60 50 40 30 20 10 0 Average High Highest 4 30 Percent Frequency 66

Axis bank has also been related as an above average bank by the respondents. People feel that axis bank is providing good facilities along with the products it offers.

[64]

4. HSBC
Table 4.19 HSBC Frequency Percent Valid Average High Highest Total 6 71 23 100 6 71 23 100 Valid Percent 6 71 23 100 Cumulative Percent 6 77 100

Figure 4.17

Percent Frequency
80 70 60 50 40 30 20 10 0 71

Percent Frequency 23 6 Average High Highest

From the above data, it is evident that HSBC is the best rated bank among all multinational banks in India. The respondents who had their relationship with HSBC were very much satisfied with the services of HSBC.

[65]

5. ICICI Bank
Table 4.20 ICICI Frequency Percent Valid Low Average High Highest Total 2 72 25 1 100 2 72 25 1 100 Valid Percent 2 72 25 1 100 Cumulative Percent 2 74 99 100

Figure 4.18

Percent Frequency
80 70 60 50 40 30 20 10 0 72

25 2 1

Percent Frequency

ICICI bank was rated as an above average bank when compared with the multinational banks and the new private players in this industry. Some respondents had a good experience with ICICI and were satisfied with the facilities and services provided by them while some were not satisfied with ICICI. So there was a mixed opinion about ICICI. [66]

6. HDFC
Table 4.21 HDFC Frequency Percent Valid Low Average High Total 6 67 27 100 6 67 27 100 Valid Percent 6 67 27 100 Cumulative Percent 6 73 100

Figure 4.19

Percent Frequency
70 60 50 40

67

30
20 10 0 Low Average 6

27

Percent Frequency

High

From the above data obtained it can be analyzed that HDFC was rated as an average bank by most of the respondents. The reason behind such ratings was that people were not satisfied with the services provided by HDFC. Some had faced the problem because of non availability of third party transactions while some were tired of a long queue outside its ATM machines.

[67]

7. IDBI
Table 4.22 IDBI Frequency Valid Lowest Low Average High Total 1 19 76 4 100 Percent 1 19 76 4 100 Valid Percent 1 19 76 4 100 Cumulative Percent 1 20 96 100

Figure 4.20

Percent Frequency
80 70 60 50 40 30 20 10 0 76

19 1 4

Percent Frequency

IDBI was also rated as an average bank by most of the respondents. Although a very few had maintained with IDBI but even these few were not satisfied with the services and other facilities provided by IDBI.

[68]

FOR INDUSIND BANK ONLY:-

1. Products offered:Saving Account

Table 4.23 Saving Account Frequency Valid Yes No Total 45 55 100 Percent 45 55 100 Valid Percent 45 55 100 Cumulative Percent 45 100

Figure 4.21

Saving Account
60 50 40 Percent 30 20 10 0 Yes No Saving Account 45 55

From the survey, I analyzed that people who had relations with Indusind bank preferred to have their saving account with Indusind bank.

[69]

Current Account
Table 4.24 Current Account Frequency Valid Yes No Total 7 93 100 Percent 7 93 100 Valid Percent 7 93 100 Cumulative Percent 7 100

Figure 4.22

Current Account
93 100 80 Percent 60 40 20 0 Yes No 7 Current Account

From the above data it can be easily interpreted that a very few of those people who were maintaining relationship with Indusind bank had their current account in Indusind bank. So it can be said that people were not much interested in having their current account with Indusind bank.

[70]

Term Deposits
Table 4.25 Term Deposits Frequency Valid Yes No Total 1 99 100 Percent 1 99 100 Valid Percent 1 99 100 Cumulative Percent 1 100

Figure 4.23

Term Deposits
99 100 80 Percent 60 40 Term Deposits 1

20
0

Yes

No

From the above figure it is pretty clear that Term Deposit of Indusind bank is not a very popular product. Therefore Indusind bank will have to make this product more attractive to attract more customers.

[71]

Credit Cards
Table 4.26 Credit Cards Frequency Valid Yes No Total 21 79 100 Percent 21 79 100 Valid Percent 21 79 100 Cumulative Percent 21 100

Figure 4.24

Credit Cards
79

80
60 Percent 40 21 20 0 Yes No Credit Cards

While including my market survey I found that people were not satisfied with this product of Indusind bank. Instead they wanted to discontinue with this product as they felt that they were deceived. This was because they were not provided with the right information about how to use the product.

[72]

Satisfaction
Table 4.27 Satisfaction Frequency Valid Yes No Not applicable Total 33 16 51 100 Percent 33 16 51 100 Valid Percent 33 16 51 100 Cumulative Percent 33 49 100

Figure 4.25

Satisfaction
60 50 Percent 40 30 20 10 0 Yes No Not applicable 16 33 Satisfaction 51

From the above data it can be interpreted that people who had their relations with Indusind bank were pretty much satisfied with Indusind bank. A majority of the people who were not satisfied with Indusind bank were those people who were not using the credit card of Indusind bank.

[73]

Annual Income/ Indusind bank Table 4.28 Annual income * Indusind Bank Cross Tabulation Count

Indusind Bank Low Dependent Annual Income Below 2 Lakh 6 Between 2-5 Lakh 2 Above 5 Lakh Total 1 3 6 32 16 50 9 15 32 100 15 24 3 44 4 1 11 5 6 2 13 Average High Highest Total

Figure 4.26

50 40 Percent 30 20 10 0 1 2 Low 6 15 6 5 Average 24 4 6 High 9 3 1 2 Highest 16 Above 5 lakh Between 2-5 Lakh Below 2 Lakh Dependent

The above table which shows the rating of people in different income group shows that people whose income is above 2 Lakh rated Indusind bank as high which means that they were pretty much satisfied with Indusind bank. [74]

Occupation / Service Table 4.29 Occupation * Service Cross Tabulation Count

Occupation

Student Service Business Others

Total

Service Low Average High Highest 5 6 2 6 4 1 2 15 24 3 1 6 16 9 3 32 50 15

Total 13 11 44 32 100

Figure 4.27

50 45 40 35 30 25 20 15 10 5 0

16 Others 6 24 15 6 1 2 Low 5 Average 4 6 High 9 3 1 2 Highest Business Service Student

The above data shows that the factor service was very important for the business class and the service class people. They wanted that service should be up to the mark and they should not face any problems because it leads to irritation.

Percent

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CHAPTER 5 SWOT ANALYSIS

Strengths
1. Diversity, resilience and flexibility. 2. Multinational bank with a good financial backup from UK. 3. Quality service is assured if one has a banking relationship with Indusind bank. 4. Good infrastructure and good incentives for the result oriented employees. 5. Large number of branches in metros. 6. Strong sales team who are recruited through interviews.

Weaknesses
1. Number of Indusind bank ATMs is less than its close competitors. 2. Average quarterly balance is comparatively higher than most of its competitors. 3. Bank charges are high (Demand draft, Pay order charges). 4. Customer of middle income group hesitates to start a relationship with Indusind bank.

Opportunities
1. Explore the market with Parivar account. 2. Lot of scope for product variation. 3. Tap the middle income group and the salaried class. 4. Lot of scope for growth in the Indian market.

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Threats
1. ATM infrastructure of its competitors. 2. Players have similar strategies. 3. There is not much differentiation between the services and products of other banks.

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FINDINGS AND CONCLUSION

FINDINGS
1. About 36% customers of the private banks are very satisfied with their services. 2. About 20% customers are very satisfied and about 19% were dissatisfied with public sector banks services. 3. In cooperative banks about 45% of the customers are very satisfied due to their fast services. 4. About 54% customers of the foreign bank are very satisfied with their services. 5. About 33% customers visit the branch more than 12 times. These customers include current account holders and user of demat services. People visiting less than 4 times i.e. 30% are mainly holders of saving accounts as their transaction occur mainly through ATM. 6. When it comes to what customer wants from bank the first and for most thing is quality services, this is the basic need of every customer. The other thing that comes after quality service is transparency almost 59% voted for it. 7. People have a mindset before investment, why do people invest was a big question but after analysis the picture became clear, approximately 82% people said that they invest to save tax. The remaining 18% said to somehow increase their capital through investments is their only motto. 8. During the study it was found that approximately 30% of the respondents belonged to age group less than 25 years and about 35% between 25-40 years.

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CONCLUSION
Thus, Indusind bank has been able to use technology to provide value-added service to its customers during the recent year. For Indusind bank, technology is an integral part of their business. However, their overall progress could have been smoother but for certain internal and extraneous factors and also a pressure on spreads due to a competitive market. E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. No country today has a choice- whether to implement E-banking or not given the global and competitive nature of the economy. Indusind bank has top grade and constantly think of new innovative customized packages and services to remain competitive. The invasion of banking by technology has created an information age and commoditization of banking services. Indusind bank have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. Without any doubt, the international scope of Ebanking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes.

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RECOMMENDATIONS

These are few recommendations which can help Indusind bank to stay ahead in the competition. Brand building: Indusind bank need to build a good brand image by providing innovative products and top class services accordingly with their products. Improve its services: There are many people who were not too much satisfied with the services provided by the Indusind bank.the4 services provided by the other multinational banks in India are very better as compared with Indusind bank therefore Indusind bank strongly needs to improve its services in order to complete with the other multinational and private sector banks in India. Indusind bank should install a number of offsite ATMs to make its presence felt in area where it has low or no presence at all. Understand challenges that Indusind bank is facing from the competition and also analyze and understand the future prospects and use it to understand the opportunities and threats facing the business and the factors driving success. Get insight into performing better in the market. Pinpoint growth in to the performing better in the market Identify the market and brand leaders and understand the competitive environment Identify the needs of the various segments of the consumers: For example. A senior citizen might opt for the higher-cost MNC bank simply because its offer free home and pick up delivery of even small values cheques. A businessman would like a bank that offers a sweep facility.

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Annexure I
FINANCIAL REPORT
Balance Sheet as at 31 March, 2010

Capital & Liabilities

For the year ended 31.3.2010 (Rs. 000s)

For the year ended 31.3.2009 (Rs. 000s) 5,281,975 40,334,119 284,598,056 79,167,877 150,164,127 459,546,154

Capital Reserves & Surplus Deposits Borrowings Other Liab. & Provisions Total Capital & Liabilities

5,281,975 52,726,184 341,740,351 63,518,196 125,265,063 588,531,769

Assets Cash & Bal. with the RBI 20,035,416 14,012,047 33,868,569

Balances with banks & Money 20,232,683 at call and short notice Investments Advances Fixed Assets Other Assets Total Assets Contingent liabilities Bills for collection 119,022,852 301,037,976 8,772,625 119,430,217 588,531,769 8,159,001,109 56,331,265

106,317,316 240,767,280 8,913,964 55,666,978 459,546,154 3,809,554,242 46,620,844

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Profit and Loss Account as at 31 March, 2010 For the year ended 31.3.2010 (Rs. 000s) Income Other income Total income 40,427,830 13,473,330 53,901,160 For the year ended 31.3.2009 (Rs. 000s) 30,563,503 10,577,377 41,140,880

Expenditures Interest expended Operating expenses Provision and contingency Total expenditure Net profit 16,518,869 14,002,839 9,736,330 40,258,038 13,643,122 11,901,671 12,010,999 8,179,733 32,092,403 9,048,477

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Annexure II QUESTIONNARE
Personal Details
1. NAME-------------------------------------------------------------------------------------------2. Age a) Below 20 years b) 40- 60 years 3. Sex a) Male 4. Marital Status a) Married 5. Occupation a) Student c) Business 6. Annual Income a) Below Rs. 2,00,000 p.a. b) Between Rs. 2,00,000 & 5,00,000 c) Above 5,00,000 b) Service d) Others b) Single b) Female b)20- 40 years d) above 60 years

6. Contact Number/Email ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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1. Your criteria for choosing a particular bank: (Please tick the appropriate box, 1- lowest 2-low 3- average 4-high and 5 the Highest)

Rating Scale Features 1.Location 2.Ambience 3 Timings 4.Products Offered 5.Clarity of Information 6. Service 1 2 3 4 5

2. Rate the following banks on a scale of 1 to 5 of satisfaction level (Please tick the appropriate box, 1 being the lowest and 5 the highest)

Rating ScaleBank 1 1. Indusind Bank 2. Axis Bank 3. Yes Bank 4. IDBI Bank 5. HDFC Bank [84] 2 3 4 5

3. Any other facilities not provided by your current bank? 4. Do you have relationships with other banks, if yes, please specify a) Axis Bank c) Yes Bank b) HDFC Bank d) IDBI Bank

Others..

5. Type the service availed in the above mentioned bank :

BANK

Induslnd bank

Axis Bank

Yes bank HDFC

HDFC Bank

IDBI Bank

1.saving a/c 2.current a/c 3.Term deposit 4.Credit cards 5.Loans 6.Insurance 7.Locker

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For Indusind Bank Customers only

1. What facilities are you availing in Indusind Bank? a. Saving A/c b. Current A/c c. Term Deposits d. Credit cards e. Loans f. Insurance g. Locker h. Others

2. Are you happy with the current services and products being offered at Indusind Bank? a. Yes b. No

3. How many times do you use ATMs in a month? a) 1-4 times b) 5-10 times c) More than 10 times d) Never

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BIBLIOGRAPHY
1. Internet Sites www.google.com www.economictimes.com www.indusindbank.co.in www.hsbc.com www.abnramro.com www.hdfcbank.com www.icicibank.com www.yesbank.com

2. Magazines and Newspapers. Economic Times Business India The Times of India

3. Books Kotler, Philip. Principles of Marketing. Asoke K. Ghosh, 2006 Malhotra, Naresh K. Marketing Research. Asoke K. Ghosh, 2007

4. Product Material, Indusind Bank.

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