A

PROJECT REPORT ON

CUSTOMER RELATIONSHIP MANAGEMENT IN PUBLIC

AND PRIVATE SECTOR BANK

SUBMITTED

IN FULFILMENT OF REQUIREMENT FOR THE AWARD

OF DEGREE OF MASTERS OF COMMERCE IN BANKING
AND FINANCE

SUBMITTED BY

SHREYAS M. VAIDYA

ROLL NO. 4

MCOM (BANKING & FINANCE)

PART 2

PROJECT GUIDE

Dr. Mrs. SMITA BHIDE

SUBMITTED TO

UNIVERSITY OF MUMBAI

(2016-17)

VPMS

K. G.JOSHI COLLEGE OF ARTS &N.G. BEDEKAR

COLLEGE OF COMMERCE

DECLARATION
 I, SHREYAS M. VAIDYA a student of K.G. Joshi
College of Arts & N.G. Bedekar College of MCOM
Banking and FINANCE (PART 2) hereby declare that I
have completed this project on CUSTOMER
RELATIONSHIP MANAGEMENT IN PUBLIC AND PRIVATE
SECTOR BANK in the academic year 2016-17.The
information submitted in this project by me is true &
original to my best knowledge.

SIGNATURE
PLACE: SHREYAS M. VAIDYA
DATE: (MCOM BANKING AND
FINANCE)

ACKNOWLEDGEMENT
It is a matter of prestige to be able to submit the
project on CUSTOMER RELATIONSHIP MANAGEMENT
IN PUBLIC AND PRIVATE SECTOR BANK in the
academic year 2016-17. The project is required to be
done for the partial fulfillment of the course of
studies. I would take this opportunity to thank my
guide at Joshi-Bedekar College of Arts and
Commerce, Dr. Mrs. SMITA BHIDE for offering me
with the necessary guidance required for the project.

I am greatful to the Principal Dr. Mrs. Shakuntala A

Singh & the Co-ordinator Prof D. M. Murdeshwar for
their support. I would also like to thank the library
staff of the college for providing me with the
necessary books & references for the completion of
the project

OBJECTIVE OF THE STUDY:

 To examine the importance of CRM in banking sector.
To understand the use of CRM in Axis Bank and Punjab
National bank
To understand the customer acquisition and retention
strategies
To analyze the perception of customer as well as
employee on CRM as a tool of banks
To evaluate the service quality offered by public and
private sector banks
To offer pertinent suggestions based on the findings of
the study.

CONTENTS
1. INTRODUCTION
2. CUSTOMER RELATIONSHIP
MANAGEMNT
CHARACTERISTICS OF CRM
BENEFITS OFCRM
TYPES OF CRM
3. AXIS BANK
HISTORY
CORPORATE PROFILE
CRM IN AXIS BANK
4. PUNJAB NATIONAL BANK
ABOUT PNB
PRODUCT AND SERVICES
RELATIONSHIP STRATEGIES
RECOMMENDATION
5. CONCLUSION
6. BIBLIOGRAPHY
 CHAPTER ONE-
INTRODUCTION

INTRODUCTION:

A bank is a financial intermediary that accepts deposits and

channels those deposits into lending activities, either directly
by loaning or indirectly through capital markets. A bank links
together customers that have capital deficits and customers
with capital surpluses.

Due to their importance in the financial system and influence

on national economies, banks are highly regulated in most
countries. Most nations have institutionalized a system
known as fractional reserve banking, under which banks hold
liquid assets equal to only a portion of their current liabilities.
In addition to other regulations intended to ensure liquidity,
banks are generally subject to minimum capital
requirements based on an international set of capital
standards, known as the Basel Accords.

Banking in its modern sense evolved in the 14th century in

the rich cities of Renaissance Italy but in many ways was a
continuation of ideas and concepts of credit and lending that
had its roots in the ancient world. In the history of banking, a
number of banking dynastiesnotably the Medicis,
the Fuggers, the Welsers, the Berenbergs, and
the Rothschildshave played a central role over many
centuries. The oldest existing retail bank is Monte deiPaschi
di Siena, while the oldest existing merchant
bank is Berenberg Bank.
MEANING:

Bank is an institute which deals in money and credit. It

accepts deposits from the public and grants loan and
advances to those who are in need of fund for various
purpose. Banks encourage savings habit among individuals
and thereby makes fund available for their use as and when
require. Banks also helps in nation development by
providing credit to farmers, small scale industry and self
employee people as well as to large business houses which
lead to balanced economic development of the country.

Different people understand the meaning of a bank in

different way. For a common man bank means a storehouse
where money is stored; for a businessman it is a financial
institution and for a day to day customer it is an institution
where the cash deposit his savings.

It also helps to standard of living of people in general by

providing loans for purchase of consumer durable goods,
houses, cars, etc. Banking activities are considered to be the
life blood of the national economy. Without banking services,
trading and business activities cannot be carried on
smoothly.

Banks are the distributors and protectors of liquid capital

which is vital significance to a developing country. Efficient
administration of the banking system helps in the economic
growth of the nation.

DEFINATION OF BANK:

Indian Banking Companies Act, 1949 - Banking Company is

one which transacts the business of banking which means
the accepting for the purpose of lending or investment of
deposits money from the public repayable on demand or
otherwise and withdrawals by cheque, draft, order or
otherwise

Oxford Dictionary defines a bank as "an establishment for

custody of money, which it pays out on customer's order."
HISTORY:

The first bank in India, though conservative, was established

in 1786. From 1786 till today, the journey of Indian Banking
System can be segregated into three distinct phases. They
are as mentioned below:

PHASE I - Early phase from 1786 to 1969 of Indian

Banks

PHASE II - Nationalization of Indian Banks and up to

1991

PHASE III - Indian Financial & Banking Sector Reforms

after 1991.

PHASE I:

The General Bank of India was set up in the year 1786. Next
came Bank of Hindustan and Bengal Bank.

The East India Company established

o Bank of Bengal (1809),

o Bank of Bombay(1840) and

o Bank of Madras (1843) as independent units and

called it Presidency Banks.

These three banks were amalgamated in 1920 and Imperial

Bank of India was established which started as private
shareholders Subscribe to comments Post Comment banks,
mostly Europeans shareholders. During the first phase the
growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and
activities of commercial banks, the Government of India
came up with The Banking Companies Act, 1949 which was
later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No.23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision
of banking in India as the Central Banking Authority. During
those days public has lesser confidence in the banks. As an
aftermath deposit mobilization was slow. Abreast of it the
savings bank facility provided by the Postal department was
comparatively safer. Moreover, funds were largely given to
the traders.

PHASE II:

Government took major steps in this Indian Banking Sector

Reform after independence. In 1955, it nationalized Imperial
Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. Second phase
of nationalization Indian Banking Sector Reform was carried
out in 1980 with seven more banks. This step brought 80%
of the banking segment in India under Government
ownership.

The following are the steps taken by the Government of India

to Regulate Banking Institutions in the Country:

1949: Enactment of Banking Regulation Act. 1955:

Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

 1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over

200 crores.

After the nationalization of banks, the branches of the public

sector bank India raised to approximately 800% in deposits
and advances took a huge jump by 11,000%. Banking in the
sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of
these institutions.

PHASE III:

This phase has introduced many more products and facilities

in the banking sector in its reforms measure. In 1991, under
the chairmanship of M Narasimham, a committee was set up
by his name which worked for the liberalization of banking
practices.

The country is flooded with foreign banks and their ATM

stations. Efforts are being put to give a satisfactory service
to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. The
financial system of India has shown a great deal of
resilience. It is sheltered from any crisis triggered by any
external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate
regime, the Foreign Reserves are high, the capital account is
not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.
TYPES OF BANK:

There are various types of banks. The necessity for the

variety among these banks is because each bank is
specialized in their own field. Each bank has its own
principles and policies. Different rates of interests are also
noted among these banks. All these banks are listed as
below:

Structure Of
Indian Banking

RBI

Commercial Co-Operative
EXIM Bank
Bank Bank

State Co-
Public Sector
Operative
Bank
Bank

District
Private Sector Central Co-
Bank Operative
Bank

Urban Co-
Foreign Bank Operative
Bank

Other Co-
Regional Rural
Operative
Bank
Bank

Othe Bank

a) Central Bank: A central bank functions as the apex

 controlling institution in the banking and financial
system of the country. It functions as the controller of
credit, bankers bank and also enjoys the monopoly of
issuing currency on behalf of the government. A central
bank is usually control and quite often owned, by the
government of a country. The Reserve Bank of India
(RBI) is such a bank within an India.

b) Commercial Banks: It operates for profit. It accepts

deposits from the general public and extends loans to
the households, the firms and the government. The
essential characteristics of commercial banking are as
follows:
o Acceptance of deposits from public
o For the purpose of lending or investment
o Repayable on demand or lending or investment.
o Withdrawal by means of an instrument, whether
a cheque or otherwise.
Another distinguish feature of commercial bank is that
a large part of their deposits are demand deposits
withdrawal and transferable by cheque.

c) Public Sector Bank: Commercial Bank ware mainly

concerned with maximization of profit. They were
lacking in social purpose. Banking in India has been
dominated by public sector banks since the July 19th,
1969 when all major banks were nationalized by the
Indian government. The nationalization was meant for
an early realization of the objectives of social control
which were as follows:
o Provision of adequate credit for agriculture &
small scale industry and export.
o Giving a professional bent to management.
o Encouragement of a new class of entrepreneurs.
o The provision of adequate training as well as
terms of service for the bank staff.
 d) Private Sector Bank: To make banking sector more
efficient & competitive, RBI issued, in January 1993, the
guidelines governing the entry of new private Bank with
minimum paid up capital of Rs.100 crores. The ICICI
bank is the private sector bank has become the largest
among the new private sector bank.

e) Foreign Bank: Foreign Bank in India is permitted to set

up local subsidiaries. They have brought latest
technology and latest banking practices in India.

f) Regional Rural Bank: RRBs were set up under an Act

of parliament in 1976, with the objective of developing
rural economy through promotion of agriculture, trade,
commerce, industry and extending credit, particularly
to small & marginal farmers, agriculture labour and
small entrepreneurs . These Banks are small Banks &
their authorized capital shall not exceed of Rs. 5 crore.
There are 196 RRBs covering 349 Districts of the
country. The RRBs are not restricted by SLR & CRR.

g) Co-Operative Bank: Co-Operative Bank started in

India in 1904, a new type of institution based on
principle of co-operation. They work on no profit no
loss basis and perform all the main banking functions.

Cooperative bank are managed by Board of directors on the

principles of Co-Operation, self help &mutual help. As per
the rule of one member one vote. Co-Operative banking
structure is federal in character with their linkages between
state, district & village level.
 CHAPTER TWO-
CUSTOMER
RELATIONSHIP
MANAGEMENT

INTRODUCTION TO CRM
Contents:

Introduction to CRM
Characteristics of CRM
CRM Focus on the Relationship
 CRM and Communication
Benefit of Effective CRM
Types of CRM
INTRODUCTION:

CRM is the abbreviation

for customer relationship management. Customer
relationship management (CRM) is a system for managing a
companys interactions with current and future customers. It
often involves using technology to organize, automate and
synchronize sales, marketing, customer service,
and technical support.

With rapid globalization of business and product or service

differentiation becoming less relevant and competitive
customer relationship now is key enabler for moving
business ahead. Customer relationship has become a factor
of competitive advantage.

DEFINATION OF CRM:

CRM is business strategies that integrate people,

processes and technology to optimize the relation of an
organization with all types customer.
Customer relationship management (CRM) is a
combination of process, procedure technology and
competencies fit to analyze and satisfy customer
knowing their needs and preferences.
In simple words:

CRM is a comprehensive approach for creating

maintaining and expanding customer relationship.

The goal of CRM is to optimize Customer satisfaction and

revenue through relationship built with potential current
customer across the business functions.
 Customer Relationship Management concerns the
relationship between the organization and its customers.
Customers are the lifeblood of any organization be it a global
corporation with thousands of employees and a multi-billion
turnover, or a sole trader with a handful of regular
customers. Customer Relationship Management is the same
in principle for these two examples - it is the scope of CRM
which can vary drastically.

CHARACTERISTICS OF CRM:

Well-designed CRM includes the following characteristics:

1. Relationship management is a customer-

oriented feature with service response based on
customer input, one-to-one solutions to customers
requirements, direct online communications with
customer and customer service centers that help
customers solve their questions.

2. Sales force automation. This function can

implement sales promotion analysis, automate tracking
of a clients account history for repeated sales or future
sales, and also co-ordinate sales, marketing, call-
centers, and retail outlets in order to realize the sales
force automation.

3. Use of technology. This feature is about following the

technology trend and skills of value delivering using
technology to make up-to-the-second customer data
available. It applies data warehouse technology in
order to aggregate transaction information, to merge
the information with CRM solutions, and to provide KPI
(key performance indicators).

4. Opportunity management. This feature helps the

company to manage unpredictable growth and demand
 and implement a good forecasting model to integrate
sales history with sales projections

TODAY'S CRM SOFTWARE:

CRM software is designed to help businesses meet the

overall goals of customer relationship management. Today's
CRM software is highly scalable and customizable, allowing
businesses to gain actionable customer insights with back-
end analytical, view business opportunities with predictive
analytics, streamline operations and personalize customer
service based on the customer's known history and prior
interactions with your business.

CRM software is commonly used to manage a business-

customer relationship; however CRM software systems are
also used in the same way to manage business contacts,
clients, contract wins and sales leads.

CRM Focuses on the Relationship:

Successful organizations use three steps to build customer

relationships:

determine mutually satisfying goals between

organization and customers

establish and maintain customer rapport

produce positive feelings in the organization and the

customers
 CREATE A DATA BASE

ANALYSIS

CUSTOMER SELECTION

CUSTOMER TARGETING

RELATIONSHIIP MARKETING

PRIVACY ISSUESH

METRICS

Customer Relationship Management

Model

CRM and COMMUNICATION:

Communication is central to any successful relationship. In

terms of Customer Relationship Management,
communication needs to be consistent and high quality; as
determined by:

on time
 focused

relevant

reliable

coherent

Importantly also, for effective communications it's the

message and meaning that is received that counts,
irrespective of what the communicator thinks they've said, or
written. Communications must be judged most vitally by the
reaction of the receiver. If the reaction is not good then the
communication is poor.

The information contained in a CRM system allows

communication to be directed at the correct audience, in the
correct way. The communication system must also
encourage and facilitate honest and actionable feedback.

Feedback from customers -especially complaints -is essential

for good organizational performance and ongoing
development. Most organizations avoid, discourage and hide
from complaints. Don't. Complaints are free guidance for
improving your quality, and free opportunities to increase
customer loyalty.

Customer Segmentation Strategy:

Effective business development strategies most often begin

with customer segmentation. Typically for developing
customer segmentation, profitable customers and non-
customers with similar characteristics are grouped. These
characteristics include demographic as well as economic
attributes which drives their purchasing power.
Building blocks of an effective customer segmentation
strategy:

The strategy grid will help you in making strategic decisions

for each of your customer segments:

Go - when your strength in a customer segment is

strong and the segment is attractive.

Keep - when your strength is strong but the

attractiveness of the segment is low.

Investigate - if the segment is attractive but your

strength is low.

Drop - if both segment attractiveness and your strength

are low.

However, organizations must figure out the most relevant

characteristics for their growth. Different customer segments
respond to different value propositions and require different
strategic approaches. When properly used, segmentation
helps you allocate resources throughout all levels of your
organization to create a value proposition that uniquely
serves your target customer groups.

Key Benefits
 Targeting: Identifying those customers most likely to
purchase and become your most profitable accounts.

Messaging: Creating unique messaging, marketing/

sales channels and contact cadence for each unique
customer segment.

Loyalty & Retention: Focusing on your most loyal

customers and the drivers of customer retention and
renewal by customer segment.

Next Logical Purchase: Predicting both what and when

customers will purchase next - and establishing timed
campaigns to intercept that purchase.

Up-sell/Cross-Sell: Understanding which offerings are

most likely to drive follow on purchase and expand
share of wallet.

Effective segmentation drives revenue growth through

increased ability to meet customers' demands. Its greatest
impact is on the top line, growing the number of customers,
the amount of sales per customer and lifetime value of the
customer.
BENEFIT OF EFFECTIVE CRM:

There are significant business benefits which accrue from an

effective, integrated Customer Relationship Management
approach. These include:

Increased
market
shares
Improved
Increase
service,
customer
loyalty,and
revenue
retention

Improve
Higher close Benefit of productivity
rate CRM &
profitability

Discovering
Reduce new
Expenses
customers
Making call
Center more
efficient

reduced costs, because the right things are being done

(i.e., effective and efficient operation)
 increased customer satisfaction, because they are
getting exactly what they want (i.e., exceeding
expectations)

ensuring that the focus of the organization is external

growth in numbers of customers

Maximization of opportunities (e.g. increased services,

referrals, etc.)

increased access to a source of market and competitor

information

highlighting poor operational processes

long term profitability and sustainability

Forward thinking organizations understand the vital need to

maintain a strategic focus on CRM and to resource and
manage it appropriately.

CRM Software Solutions and ICT (information and

communications technology):

Software and ICT play a significant part in enabling an

effective CRM capability, especially in large organizations.
There are many and various systems available, and it is
important to have a clear idea of your requirements during
the software solution selection process, which for most
organizations will also involve the selection of ICT service
provider too, since any software solution, for all but very
small companies, generally requires support for specifying,
implementation, training and maintenance.

Siebel, Sage (who now provide the well-known Accpac and

ACT! CRM solutions), and Front Range (whose product is
Goldmine) are all significant and proven CRM software
products companies. There are many others, and very many
more ICT service providers through whom distribution and
support is normally arranged.
As with any ICT project, ensure you work with reliable and
knowledgeable advisors, with access to cost-effective proven
solutions, which can help you to build and implement an
effective CRM software and ICT capability.
TYPES OF CRM:

There are various types of CRM applicable as per sector

needs :

SALES CAMPAIGN
INTELLIGENC MANAGEMEN
E CRM T

ANALYTICAL COLLABORAT
CRM IVE CRM

TYPES
OPERATIONA
L CRM OF GEOGRAPHIC
CRM

CRM

1. Operational CRM:
Operational CRM Provides support to front office
business processes. The operational application of CRM
enables effective interaction with customers. For this
purpose various tools are used. The contact history
provides staff members with immediate access to
important information on the customer (product owned,
prior support calls etc.), eliminating the need to
individually obtain this information directly from the
customer.

2. Analytical CRM:
This is a CRM type that maintains the analysis and
operations of an organizational back-office. Here, the
sales are not done directly to the customers. This type
is made in a mode to analyze critically the information,
the demographics and anything else relating to the
customers. The sole aim of analytical CRM towards the
organization is developing, supporting and enhancing
the decision-making in the organization.
 CHAPTER THREE-
AXIS BANK
INTRODUCTION TO AXIS BANK

Contents:

Introduction
History
Operation
Service
Initiatives
Corporate profile
CRM in AXIS

INTRODUCTION:

Axis Bank Limited (formerly UTI Bank) is the third largest

private sector bank in India. It offers financial services to
customer segments covering Large and Mid-Corporate,
MSME, Agriculture and Retail Businesses. Axis Bank has its
headquarters in Mumbai, Maharashtra.

HISTORY:

Axis Bank began its operations in 1994, after

the Government of India allowed new private banks to be
established. The Bank was promoted in 1993 jointly by the
Administrator of the Unit Trust of India (UTI-I), Life Insurance
Corporation of India (LIC), General Insurance Corporation
Ltd., National Insurance Company Ltd., The New India
Assurance Company, The Oriental Insurance Corporation
and United India Insurance Company. The Unit Trust of India
holds a special position in the Indian capital markets and has
promoted many leading financial institutions in the country.

Axis Bank (erstwhile UTI Bank) opened its registered office in

Ahmedabad and corporate office in Mumbai in December
1993. The first branch was inaugurated on 2 April 1994
in Ahmedabad by Dr. Manmohan Singh, the then Finance
Minister of India.

OPERATION:

Indian Business: As on 31-Mar-2014, the Bank had a

network of 2402 branches and extension counters and
12922 ATMs. Axis Bank has the largest ATM network among
private banks in Indiaand it operates an ATM at one of the
worlds highest sites at Thegu, Sikkim at a height of 4,023
meters (13,200 ft) above sea level.

International Business: The Bank has seven international

offices with branches at Singapore, Hong Kong, Dubai (at
the DIFC), Shanghai and Colombo and representative offices
at Dubai and Abu Dhabi, which focus on corporate lending,
trade finance, syndication, investment banking and liability
businesses. In addition to the above, the Bank has a
presence in UK with its wholly owned subsidiary Axis Bank
UK Limited.

SERVICE:
Axis Bank operates in four
segments: Treasury operations, Retail
banking, Corporate/Wholesale banking and other banking
business.

Treasury operations: The Banks treasury operation

services include investments in sovereign and
corporate debt, equity and mutual funds, trading
operations, derivative trading and foreign exchange
operations on the account, and for customers and
central funding.

Retail banking: In the retail banking category, the

bank offers services such as lending to individuals/small
businesses subject to the orientation, product and
granularity criterion, along with liability products, card
services, Internet banking, automated teller
machines (ATM) services, depository, financial advisory
services, and Non-resident Indian (NRI) services.

Corporate/wholesale banking: The Bank offers to

corporate and other organizations services including
corporate relationship not included under retail
banking, corporate advisory services, placements and
syndication, management of public issues, project
appraisals, capital market related services and cash
management services.

NRI services: Products and services for NRIs that

facilitate investments in India.

Business banking: The Bank accepts income and

other direct taxes through its 214 authorized branches
at 137 locations and central excise and service taxes
(including e-Payments) through 56 authorized branches
 at 14 locations.

Investment banking: Banks Investment

Banking business comprises activities related to Equity
Capital Markets, Mergers and Acquisitions and Private
Equity Advisory. The bank is a SEBI-registered Category
I Merchant Banker and has been active in advising
Indian companies in raising equity through IPOs, QIPs,
and Rights issues etc. During the financial year ended
31 March 2012, Axis Bank undertook 9 transactions
including 5 IPOs and 2 Open Offers.

Lending to small and medium enterprises: Axis

Bank SME business is segmented in three groups: Small
Enterprises, Medium Enterprises and Supply Chain
Finance. Under the Small Business Group a subgroup for
financing micro enterprises is also set up.Axis bank is
the first Indian Bank having TCDC cards in 11
currencies.

Agriculture banking: 759 branches of the Bank

provide banking services, including agricultural loans,
to farmers. As on 31 March 2013, the Banks
outstanding loans in the agricultural sector was INR 148
billion, constituting 7.5% of its total advances.

INITIATIVES:

The Business Gaurav SME Awards: In 201112, Axis

Bank set up 6 SME centers and SME cells each across
the country, taking the total number to 32 SME Centers.
The Bank also organized the 'Business Gaurav SME
Awards' in association with Dun & Bradstreet to
recognize and award achievements in the SME space.

Financial inclusion: Till March 2012, the Bank had

 opened over 4.4 million No Frills accounts in over 7607
villages through a network of 15 Business
Correspondents and nearly 6000 customer service
points. Axis Bank has a strong presence in Electronic
Benefit Transfer (EBT) and has covered 6800 villages
across 19 districts and 9 states till date with over 3.7
million beneficiaries.

Industry First Initiatives:

Axis Bank launched Mobile Banking App 2.0 for its retail
resident Indian customers the first of its kind in India,
which offers a high level of personalization. The App
has been launched in partnership with Tagit, a leading
Singapore mobile solutions company. The new
application uses Tagit's mobility solution platform that
enables Banking on-the-go.

'Axis Bank - ISIC Forex Card' for students, is the first

photo Travel Currency Card available in USD, Euro, GBP
and AUD currencies. It can be used across 34 million
merchant locations and at over 2
million MasterCard ATMs globally.

Axis Bank has partnered with Visa to launch 'eKYC'

(electronic Know your customer) facility, first
organization in India to introduce Biometrics based KYC,
offering convenience, speed and ease to Aadhaar-
registered individuals to open bank accounts.

CORPORATE PROFILE:

Axis Bank is the third largest private sector bank in India.

Axis Bank offers the entire spectrum of financial services to
customer segments covering Large and Mid-Corporate,
MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 2402 domestic branches

(including extension counters) and 12,922 ATMs spread
across the country as on 31st March 2014. The overseas
operations of the Bank are spread over its seven
international offices with branches at Singapore, Hong Kong,
DIFC (Dubai International Financial Centre), Colombo and
Shanghai and representative offices at Dubai and Abu Dhabi.
During the year, the Bank has upgraded its representative
office in Shanghai, China to a branch to become the first
Indian private sector bank to set up a branch in China.
During the year, the Banks overseas subsidiary namely Axis
Bank UK Ltd. commenced banking operations.

Axis Bank is one of the first new generation private sector

banks to have begun operations in 1994. The Bank was
promoted in 1993, jointly by Specified Undertaking of Unit
Trust of India (SUUTI) (then known as Unit Trust of India),Life
Insurance Corporation of India (LIC), General Insurance
Corporation of India (GIC), National Insurance Company Ltd.,
The New India Assurance Company Ltd., The Oriental
Insurance Company Ltd. and United India Insurance
Company Ltd. The shareholding of Unit Trust of India was
subsequently transferred to SUUTI, an entity established in
2003.

With a balance sheet size of Rs. 4,61,932 crores as on 31st

March 2015, Axis Bank has achieved consistent growth and
stable asset quality with a 5 year CAGR (2010-11 to 2014-
15) of 21% in Total Assets, 18% in Total Deposits, 22% in
Total Advances and 24% in Net Profit.
CRM is the abbreviation
for customer relationship management. Customer
relationship management entails all aspects of interaction
that a company has with a customer, whether it is sales or
service-related. While the phrase customer relationship
management is most commonly used to describe a business-
customer relationship, CRM systems are also used to
manage business contacts, clients, contract wins and sales
leads. "CRM" is a term, collectively used to refer to a
combination of strategy & software.

CRM at Axis involves increased communication between the

bank and its present and prospective customers. Its
philosophy focuses on each and every customers
satisfaction.

CRM facilitated coordination of multiple business functions &

multiple channel of communication with the customers to
carry out customer management more efficiently. It also
automated the process flow tracking in the product sales
process and helped generate customized reports and
promote cross-selling.

IMPLEMENTING CRM AT AXIS:

The key to implementing CRM was in understanding

organization and customers in a better way. There are five
interrelated areas that were taken care of before
implementing CRM: -

Business Focus
Organizational Structure
 Business Metrics
Marketing Focus and Technology

Business Focus:

There are various components of CRM like customer

information, sales, marketing trends and marketing efficacy
that acted in tandem to improve relationship between AXIS
and its consumers. AXIS captured customer data and
analyzed them while dealing with customers at these very
touch points. A CRM solution from Siebel was implemented
for the automation of customer handling in all key retail
products of the Group. The solution allows customer service
agents to track all customer complaints and requests. It also
allows target setting and centralized tracking of turnaround
times for request fulfillment. The solution went live in phases
during fiscal 2002. The Bank has also undertaken a retail
data warehouse initiative to achieve customer integration at
the back-office. This central view of the total customer
relationship is being used extensively for identifying
opportunities to cross-sell new products and services to the
existing customer base.

Technology Focus:

AXIS Bank continues to leverage ICT2 as a strategic tool for

its business operations to gain competitive advantage. Its
technology strategy emphasizes enhanced level of customer
services through 24x7 availability, multi-channel banking
and straight through processing, and cost efficiency through
optimal use of electronic channels, wider and focused
market reach and opportunities for cross-selling. The
Technology Management Group (TMG) is the focal point for
the AXIS Groups technology strategy and Group-wide
technology initiatives. This group reports directly to the
Managing Director & CEO.A key to AXISs success has been
its ability to harness business information to CRM initiatives
that have fueled growth and helped attract more than 30
million customers. The foundation for AXIS Banks wide-
ranging CRM programs is a Sybase IQ-based data
warehouse. Developers had used a combination of PL/SQL
and BTEQ scripting, a proprietary technology specific to the
data warehouse, for data extraction, transformation, and
loading (ETL). With its growing customer base, IT
administrators recognized that the bank needed a more
powerful, sophisticated data integration system to help
ensure the warehouse lived up to its potential as an analytic
CRM engine that delivered tangible bottom-line results.

To step up to the next level of data integration, AXIS Bank

officials agreed with are commendation from Teradatas
professional services division, which provided systems
integration support for the data warehouse, to implement
the Informatics Power Center enterprise data integration
platform. (The Bank initially used Teradata as its data
warehouse platform and migrated to Sybase IQ a year ago.)

AXIS Bank deployed Power Center in 2003 as it embarked on

the next phase of its warehouse, which would add data from
five new sources, in addition to the initial three sources of
retail banking, credit cards, and securities information.

The next step in the CRM implementation process was gap

analysis which essentially is assessing different loopholes in:
-
Marketing, sales and service practices
Collection, capture, processing and deployment of
customer information

Distribution and operations effectiveness at customer touch

points
 CHAPTER FOUR-
PUNJAB NATIONAL
BANK

CONTENTS

About PNB
Products and services
Business objective
PNB before implementing CRM
Customer relationship strategies adopted by PNB
Relationship strategies
Recommendations
 About PNB

Punjab National Bank Ltd was the result of the efforts of far-
sighted visionaries and patriots, among whom were persons
like Lala Lajpat Rai, Mr. E C Jessawala, Babu Kali Prasono Roy,
Lala Harkishan Laland Sardar Dyal Singh Majithia.
Incorporated under the Act VI of 1882, Indian Companies Act,
the Bank commenced operations on April 12, 1895 from
Lahore, with an authorised total capital of Rs 2 lac and
working capital of Rs 20,000. Prophetically, the Bank chose
"Stability" as its telegraphic address, as the future course of
events were to prove - the Bank withstood various financial
crises including the trauma in the form of partition of India
when the Bank had to close 92 offices (33%) in west Pakistan
which constituted 40% of its deposits and 15 of its staff
fell victims to the frenzy. The registered office was shifted to
Delhi and the Bank honored all the deposit claims of the
refugees even on the basis of whatever little evidence they
could produce. Subsequently, the Bank registered impressive
performance and grew from strength to strength.

A pioneer throughout, the Bank distinguished itself by

appointing auditors in 1895 long before it was mandatory;
introduced the "teller" system in 1944 (another first);
established profit sharing bonus, provident fund and
voluntary outside audit well before they formed keystones of
good management.
After nationalisation came in 1969 the Bank, keeping with
the economic ideology of catalyzing development and
amelioration of poverty by funding various self-employment
schemes, PNB expanded its presence rapidly in unbanked
areas. With its large presence throughout the country and
with a view to strengthening the rural credit delivery system,
the Bank sponsored Regional Rural Banks (RRBs).

The bank's growth has been aided by take-over/merger of 7

private sector banks during different periods in its history.
The first ever and the only merger of a nationalized bank
with PNB was in 1993, via New Bank of India.

By late 1980s when the first whiff of liberalization came

about, the Bank initiated strategic moves towards
diversification; and in 2002, 20% of government ownership
was disinvested through a very successful IPO to the public.
In 2003, the erstwhile Nedungadi Bank Ltd (e-NBL), a Kerala
based private bank was amalgamated with Punjab National
Bank. This was the seventh merger in PNBs history of more
than 115 years. In order to meet future capital requirements
on account of implementation of Basel II norms, in March
2005, the Bank came out with Follow-on Public Offer (FPO)
through the book building process, reducing the
shareholding of Govt. of India to 57.8%.
Punjab National Bank with 4997 domestic offices including
46 Extension Counters has the largest network amongst the
nationalized banks i.e. next only to SBI.

Products and Services

Personal Banking
Saving Fund Account
PNB Prudent Sweep
Total Freedom Salary Account
PNB Vidyarthi SF Account
PNB Mitra SF Account
Current Accounts
 FD Schemes
Loans
Housing, Personal, Educational, Property etc
Cards
Nomination Services

Social Banking
Agriculture Credit
Krishi Card
Schemes for Women

Corporate Banking
Loan against future lease rentals
Exim Finance
Cash Management
Traders Finance
Schemes for SSI Sector

Business Objective

Vision

To be a Leading Global Bank with Pan India footprints and

become a household brand in the Indo-Gangetic Plains
providing entire range of financial products and services
under one roof"

Mission
 Banking for the unbanked

PNB: Before implementation of CRM

Punjab National Bank used a two-pronged strategy to IT-
enable itself and support present and future business needs.
And along the way it picked up valuable information and
experience.
In March 2000, IT systems were deployed only at 500-odd
branches, and were very dissimilar. Precisely, only 35
percent of the bank's business was computerized and a
number of small software packages ran on standalone
PCs.By 2003, PNB had 101 branches on a WAN, deployed a
core banking infrastructure, and runs 175 networked ATMs. It
had also deployed areliable security infrastructure that helps
it conduct transactions within its branches without worry. The
journey doesn't end here, but along the way the bank's
picked up valuable knowledge and experience.

Customer relationship strategies adopted

by PNB:

As we know customer relationship management enables

companies to provide excellence real-time customer service
through the effective use of individual account information.

PNB has been able to maintain its founding principles

through more than 100 years of change and continue to
bring the most efficient service possible to its customers
without losing the friendliness and special attention they are
used to receiving. A motto that is used repeatedly in all PNB
branches is "know your customers". According to Circle
Head, PNB Lucknow, Mr. B.L. Gupta "Having the Right Offer
For The Right Client, At The Right Time Via The Right
Channel".

It Was a Strategy adopted In the Business Model of the

Banks and Clearly Focused to Value Generation.

That aTechnology Was The Nucleus Of CRM That Was

Evolving Into ACommodity Piece Within CRM Strategies.

Relationship strategies:

CRM ( customer relationship management) solution deployed

across all the branches of 11 identified circles. This enabled
the marketing teams to effectively implement their strategy,
making good use of higher visibility. The CRM helps the bank
now to better retain existing customers by cross-selling and
up-selling, to attract new customers by offering various
value added products and services, and even convert loss
making customers into profitable ones.
PNB also uses online trading services for customers. Now
consumers can enjoy the convenience of investing in
financial products from the comfort of their home / offices
by using SMC Global's website, also online trading link in
provided on pnb bank's website.

PNB also provide SFMS (structural financing messaging

system) services. It is the modernized web enabled software
for financial message communication. It facilitates
centralized or distributed deployment, secured messaging
and routing based on store and forward principles.

Online Assistance:-PNB provides its customers online

assistance by providing i-banking, online complaints,
providing then information about various products and
services. These complaints and assistance are
processed by customer care services.

CUSTOMER INFORMATION- In PNB the customer

information collected from the customers shall not be
used for cross selling of services or products by the
Bank, their subsidiaries and affiliates. If the Bank
proposes to use such information, it should be strictly
with the consent of the accountholder.

SECRECY OF CUSTOMER'S ACCOUNTS- The Bank did not

disclose details / particulars of the customer's account
to a third person or party without the expressed or
implied consent from the customer. However, there are
some exceptions, viz. disclosure of information under
compulsion of law, where there is a duty to public to
 disclose and where interest of the Bank requires
disclosure.

REDRESSAL OF COMPLAINTS AND GRIEVANCES- In case

there is problem to the customers the bank use some
strategies to make customer convenient. Depositors
having any complaint or grievance with regard to
services rendered by the Bank have a right to approach
authority designated by the Bank for handling customer
complaint / grievances. The details of the internal set
up for redressal of complaints / grievances will be
displayed in the branch premises. The branch officials
shall provide all required information regarding
procedure for lodging the complaint. In case the
depositor does not get response from the Bank within
60 days from date of complaint or he is not satisfied
with the response received from the Bank, he has a
right to approach Banking Ombudsman appointed by
the Reserve Bank of India.

For the convenience of customers PNB provides

bancassurance, through which if the customer wants
insurance services with the banking they can avail in a single
place. It is also for the convenience of the customers.

PNB also work for rural area's people, through micro-finance.

The employees of PNB go their and through personal talk
with rural peoples they get to know about their financial and
economical condition. And they offer them relevant banking
services according to their budget.
Enabling over 55,000 employees in over 4,500 locations to
serve customers and conduct regular banking duties in
Punjab National Bank. Like other banks, PNB too had to
adhere to risk compliance and have a 360 degree view of its
customers and MIS.

PNB owe the success of their organization to their

consultants. They lay equal emphasis on Consultant and
client satisfaction and believe in the saying "Satisfied
Consultants lead to Satisfied Clients". With the personal
growth of consultant in mind, roles and projects are changed
at least once in every nine months.

PNB Advanced Development centre at Bangalore gives an

advantage of 24X7 work culture to our global clients. The
turnaround time can be fixed based on the client's urgency.

Bank communicates users via email or other online/offline

delivery devices only if the customer agrees to receive those
communications. Customers, who believe that they are
receiving our communications in error or no longer desire to
receive them, should inform us and we will remove that
customer's name from our mailing lists. This is also the main
strategy to keep in contact with customers.

Punjab National Bank also mainly focus on reducing

customer defection, through the following steps:

1. They define and measure its retention rate.

2. They distinguish the cause of customer attrition and

identify those that can be managed better.
 3. They estimate how much profit it loses when it loses
customers.

4. They figure out how much it would cost to reduce the

defection rate.

Forming strong customer bonds: PNB form strong customer

bonds through the following steps:

Get cross-department participation in planning and

managing the customer satisfaction and retention process.

Integrate the "voice of the customer" to capture their stated

and unstated needs or requirements in all business
decisions.

They create superior products, services, and experiences for

the target market.

Make it easy to reach customer to appropriate company

personnel and express their needs, perception, and
complaints.Run award programs recognizing outstanding
employees.

PNB provide wide range of services to fulfil all needs of

customers i.e.

Savings Fund Account - PNB Prudent Sweep, Total

Freedom Salary Account, PNB Vidyarthi SF Account, PNB
Mitra SF Account

Current Account - PNB Smart Roamer, PNB Vaibhav,

PNB Gaurav
 Fixed Deposit Schemes - Mahabachat Schemes,
Spectrum Fixed Deposit Scheme, Anupam Account,
Multi Benefit Deposit Scheme

Credit Schemes - PNB Flexible Housing Loan, Car

Finanace, Personal Loan

Social Banking - Krishi Card, PNB Farmers Welfare Trust,

Mahila Udyam Nidhi Scheme

Corporate Banking - EXIM finance, Gold Card scheme

for exporters

Business Sector - PNB Vikas Udhami, PNB Karigar credit

card, PNB Kushal Udhami, PNB Pragati
UdhamiMoreover, the Punjab National Bank of India also
offers locker facilities, senior citizens schemes, PPF
schemes and various E-services to their customers.

ATM facilities: PNB feels that ATMs offer many advantages

over conventional branch-based banking like low cost per
transaction and customer convenience. To encourage this,
the bank has installed various ATMs, networked. A Base24
switch controls the ATMs. PNB has formed a consortium of
seven banks and has principally agreed to share the ATM
facilities amongst themselves.
 Recommendations

A Major revamp of its Customer care- A complete

over hauling of its customer care department is
required so as to reduce complaints of customer in turn
which may affect its working.
Penetration into Rural Market with E- Commerce
Facility -Though it is one of the strategies of PNB to
enter deeply into rural sector, but this step has to be
taken up seriously and as soon as possible so as to tap
the market the rural market easily and these services
should be well equipped with E-Commerce features
mainly like Tele-banking and ATMs etc.
Concentrate on Building Brand Image-PNB is very
well known institution for investing purposes and as
well as for its social practices , PNB should further look
to enhance this image and shed the image of being a
lethargic PSU entity
Reduce Non Performing Assets-It has become a
necessity for PNB to reduce its NPAs
Developing strong cultural values
Social Integrity
Bonding with customers
Responsiveness
Fast & Decentralized decision making
Awards and Incentives based pay structure
Globalization
 CONCLUSION

The aim of the banks is to provide state-of-the-art, low cost

and efficient banking services, with a focus on increasing
fee-based income. New innovative products are been
offered, even a small investor is able to invest in such
products.

Indias financial services sector is expected enjoy generally

strong growth during coming years, driven by rising personal
incomes, financial sector liberalization and the growth of a
more consumer oriented, credit-oriented culture. This is
expected to lead to increasing demand for financial
products, including consumer loans as well as investment
products.

Banks are the Financial Institution which satisfies the

individual & group goals with proper systems of rules,
regulations, policies, services, procedures& strategies. To
achieve the goals and objectives the main component of the
banks are the customers.
Banks are the diversified financial services company that
provides a range of services to customer including retail
banking, venture capital, private equity, working capital
finance etc.

Banking is something about transition of money. In todays

scenario each bank offers similar services, only thing which
differentiates one bank from other is customer experience
which creates customer preference about bank and thus
decides the bankers business. In order to enriching the
customer experience with firms profitability, ones approach
should be customer centric and in doing so CRM plays a vital
role.

BIBLIOGRAPHY

All this information related to customer relationship

management is taken from internet and some part is
referred form textbooks

Internet is the key role for this project research

www.businessstandards.com

www.timesofindia.com
www.punjabnational.in

www.axisbank.com

www.wikipidea.com