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The Indian banking industry, which is governed by the banking regulation act of India,
1949 can be broadly classified in to two major categories, non-scheduled and scheduled
banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms
of ownership commercial banks can be further grouped in to nationalized banks, the state
bank of India and its group banks. Regional rural banks and private sector banks. These
banks have over 67000 branches spread across the country.
The Indian banking sector can be broadly classified in to nationalize (government banks),
private banks and specialized banking institutions.
Since the nationalization of banks in 1969, the nationalized banks have acquired a place
of prominence and since then seen tremendous progress.
The banking in India is highly fragmented with 30 banking units contributing to almost
50% of deposits and 60% of advances. Indian nationalized banks continue to be the major
lenders in the economy due to their sheer size and penetrative networks which ensures
them high deposit mobilization.
Nationalized continue to dominate the Indian banking arena. Industry estimates indicate
that out of 274 commercial banks operating in India, 27 are in the public sector, 31 in
private in private sector and 29 are foreign banks.
PRIVATE AND FOREIGN BANKS
The RBI has granted operating approval to a few privately owned domestic banks; of
these may commence banking business. Foreign banks operate more than 150 branches in
India. The entry of foreign banks is based on reciprocity, economic and political bilateral
relations.
RBI BANKING
The reserve bank of India is the central banking institutions. The RBI acts as a centralized
body monitoring any discrepancies or shortcomings in the system. It is the sole authority
for issuing bank notes and the supervisory body for banking operations in India it is also
responsible for for granting licenses for new bank branches.29 foreign banks operate in
India with full banking licenses. Several licenses for private banks have been approved.
Despite fairly broad banking coverage nationwide, the financial system remains
inaccessible to the poorest in India.
The banking system has three tiers. These are the scheduled commercial banks; the
regional rural banks, which operate in rural areas, not covered by the scheduled banks;
and the co-operative and the special purpose rural banks.
There are approximately 80 scheduled commercial banks Indian and foreign; almost 200
regional rural banks; more than 350 central co-operative banks, 20 land development
banks; and a number of primary agricultural credit societies. In terms of business, the
public sector banks, namely the state bank of India and the nationalized banks, dominate
the banking sector
Chapter2
Company Profile
BACKGROUND:
Standard Chartered Bank is one of the largest MNC bank which employs 38,000 people
at over 950 locations in more than 50 countries in the Asia Pacific Region, South Asia,
the Middle East, Africa, the United Kingdom and the Americas.
Standard Chartered is listed on both the London Stock Exchange and the Stock Exchange
of Hong Kong and is in the top 25 FTSE-100 companies, by market capitalization. The
Bank is well-established in growth markets and aims to be the right partner for its
customers by combining deep local knowledge with global capability. It is trusted across
its network for its standard of governance and its commitment to making a difference in
the communities in which it operates.
Standard Chartered Bank offers a full range of traditional as well as structured banking
products to corporate clients, covering short and long term funding in local and foreign
currencies and transaction banking including comprehensive trade finance, supply and
dealer chain financing, and cash management services.
The Bank has expanded client coverage further to include the middle market segment of
corporate customers in selected industry sectors and has also commenced initiatives
covering commercial real estate and commodity finance. The Bank works in close
partnership with other businesses - Global Markets and Consumer Banking, to offer a
seamless and comprehensive banking solution to clients.
Standard Chartered Bank India is the country’s largest international bank, with 82
branches and over 8,000 employees and is one of the Group’s key operations worldwide
in terms of profitability. The Bank has played a significant role in the history of the
banking industry in India since opening its first branch at Kolkata in 1858 and completed
150 years of existence as a company in 2003. Standard Chartered Bank India has a
combined customer base of 2 million in consumer banking and over 800 top corporate
relationships.
The Bank prides itself in building long-standing relationships with corporate clients and
its 150 year presence in India has resulted in deep local expertise that leverages its global
network and world-class product suite, enabling it to become the Bank of choice to the
country’s top corporate.
Standard Chartered Bank offers a wide range of personal banking products and services
including credit cards, mortgages, auto loans, personal loans, wealth management
products and business finance solutions for Small and Medium Enterprises.
Standard Chartered Bank India is an active participant in various advisory forums and has
played a lead role in RBI committees on Rupee Derivatives and Options. The Bank’s
back office operations, which were India’s first to be accorded ISO 9002 certification,
now form part of the state-of-the-art global processing and reconciliation hub in Chennai.
Some examples of innovative products and services from Standard Chartered include:
• Net Banking - A secure Internet banking service that provides the convenience of
completing a whole range of transactions from your desktop.
• Home Assist – A unique end to end property service that makes the process of buying a
home easy and transparent aXcessPlus - A savings account that provides clients
unparalleled access to their money
• Enhanced Business Plus - A value packed current Account to take care of clients’
business needs
• Smart Fill – A Bharat Petroleum co-branded debit card which helps clients save 2.5 per
cent every time they fill fuel Air Sahara Gold Credit Card - The first airline gold credit
card in the country that has guaranteed free tickets and upgrades apart from normal
mileage point benefits
• Diva - A specially-designed credit card for women with a host of value added features
• Mini Card - The first miniature card in India targeted at the younger generation which is
packed with a host of offers M-Wallet- A credit card on the mobile phone
Corporate Social Responsibility (CSR) is at the core of the values of Standard Chartered
Bank. The Bank is committed to the communities and environments in which it operates.
The Bank strongly supports the trend towards delivering shareholder value in a socially,
ethically and environmentally responsible manner.
In partnership with Sight Savers International and VISION2020 the Bank is now
involved in two flagship projects at Vishakhapatnam and Muzaffarpur, both aimed at the
elimination avoidable blindness. Furthermore, in support of the communities ravaged by
the Asian Tsunami Crisis in 2004 the Standard Chartered Group committed US$ 1
million to India. The Bank is utilizing these funds for the rehabilitation of two villages
adopted near Chennai.
FUTURE PLANS:
After 150 years of service to India, Standard Chartered Bank continues to be committed
to the country and optimistic of positively contributing to the Indian Financial Sector.
The Standard Chartered Group considers India to be one of the greatest economic
opportunities of the 21st century and is proud to be so strongly positioned here. The Bank
has ambitious plans to transform its business in the country and to further expand
operations across the country.
MARKET POTENTIAL:
Chapter 3
NATURE OF THE JOB ASSIGNED
The Project was an endeavor to study the existing saving accounts and the standard
Chartered’s presence in it. It also tries to analyze Standard Chartered’s latest policies,
features, gifts and offerings. In fact the Project traces the last year of Standard
Chartered’s presence, its present status and finally suggests the future course of action for
the product, price, place and promotion. All the main competitors too have been
introduced to give a fairer picture of the market.
One of the Largest MNC Bank in India is no doubt growing at very fast pace and making
inroads in the Indian market but the growth can be accelerated provided a better
marketing strategy are applied.
In the process of selling saving account I went through several stages of negotiations and
my ultimate objective was to convert the deal into final sales.
Chapter 4
RESEARCH METHODOLOGY
STATEMENT OF THE PROBLEM AND ITS SIGNIFICANCE
Research means search for knowledge and research methodology is a systematic way to
solve the research problem. It is a science of study how the search is actually done. It
presents the source of data collection and tools of investigation.
1. To know the various marketing strategies that standard chartered bank follows
with reference to its Savings account.
The research methodology which was followed by me, consist of the following steps:-
Generally, large samples give more results than the smaller samples. The
sample refers to the number of respondents from the universe. My sample size
was total 30 Bank branches of various banks in Delhi comprising all areas in
Delhi i.e. south, north, central, west and east Delhi.
CONTACT METHOD: once the sampling plan has determined, the question was how the
subject should be contacted, i.e. by telephone, mail or personal interviews. But the single
way to contact the subject was personal interviews
Chapter 5
Product Profile
Following are the products offered by the Standard Chartered Bank (SCB)
SCB
PRIORITY BANKING
The Priority Banking program revolves around five main cornerstones of service – Personal,
Professional, Profitable, Private and Privileged. Some highlights of program are:
• Preferential pricing on all products and charge-free banking services like free
pay orders/ drafts on our branch locations, free multi-city cheque books, free
Doorstep Banking facilities like cash/cheque pickup and delivery, and a pre-
approved Global Credit Card, free for life, with enhanced credit limits.
EXCEL BANKING
• Savings Account
• Term Deposits
• Business Plus current account
• 2-in-1 Account
• Investments
Retail Services
Chapter 6
Product
“A service is a bundle of features and benefits and the benefits and features have
relevance for a specific target market “
Pricing
Service pricing basically follows the principle and practices of pricing of goods and,
therefore, they are either cost based or market based. With in these categories prices may
be profit oriented, government controlled, competitive or customer oriented.
For services the pricing strategy should be such that demand fluctuations should be
successfully handled.
Place
As services are intangible and inseparable the distribution channels available for product
marketing cannot be used. Because of intangibility, services can’t be stored, transported,
inventoried, traditional wholesales and other intermarries, and there fore can’t be used.
Even the retailing can’t be an independent activity. In case of services production can’t be
separated from selling, services must be created and sold at the same time.
Promotion
While we are defining the objective of our communication campaign, one should also be
clear about the target audience. In service sectors there is a direct contact between the
person who provide the service and the customer. Therefore some amount of promotion
should be targeted at the employees so as to motivate them to service the customer better.
People
In a service organization employees are essentially the contact personnel with the
customer. Therefore an employee plays an important role in the marketing operations of a
service organization. The employer should apply market research, market segmentation
and marketing activities like advertising in order to attract employees and make them
perform in the desired way. Such tradition marketing efforts should be used internally.
Physical Evidence
A customer can’t see a service, but definitely he can see various tangible clues of the
service offered like facilities, communication materials, objects, employees, other
customer’s price etc.On the basis of his perception on there tangible clues the customer
makes the purchase decision. The argument is that physical environment, facilities and
atmosphere give enough physical evidence to help in shaping customer’s perception.
Process
The importance of the process management is that it assures service arability and constant
quality. Without sound process management, balancing service demand with service
supply is extremely difficult. Services can’t be inventoried’; therefore it become essential
to find out ways and means to handle peak load to optimized different customer’s need
with varied expertise levels with in the service organizations.
PRODUCT
PRICE
Place
13%
High
Middle
30% 57%
Low
Out of 150 respondents 57% of them belong to high income group and 30% of
them belong to middle income group and only 13% of them belongs to low income
group. A large no of people who are opening an account with standard chartered bank
belongs to high income group.
Breakup of sample according to their profession
Break up of respondants
10% Service
33%
Student
Businessman
44%
13% Housewife
Also some what like 44% of the respondents are from business category, 33% from
service background, 13% students and 10% left belongs to the housewife category. This
graph clearly shows the most of the customer of banks are businessman and serviceman.
Students and house wives are emerging as new segments.
35%
YES
NO
65%
out of 150 respondents only 35% have used services of SCB. This figure is very low as
compared to the others banks. This clearly shows that the market share of SCB is very
low.
Chapter 8
Analysis of Questioner
1. Services of which banks are you currently availing?
No. of users
60 52
40
40
Users
22 22 No. of users
20 14
0
SCB ABN CITI HSBC REST
Banks
It clearly shows that other banks than the above mentioned MNC banks leads the way.
All other banks are way behind those banks. These banks have been for long time in India
and also coverage of all MNC bank in India is very small.
2. Which bank provides you the best banking experience?
B a n k in g E x p e r ie n c e
50
40
30
20 B a d e x p e r ie n c e
10 G o o d E x p e r ie n c e
0
S C B A B N C IT I H S B CR E S T
Banks
All the banks have done well as far as providing good banking experience is concerned.
Here again rest of the banks are leading as they have max. no of good experience and
least no. of dissatisfied customers.
3. Which factor influences your decision the most while availing the services of the
bank?
S.No. Features No. of respondents
1 Location of the bank 48
2 Charges of the bank 20
3 Branch timings 30
S.No. Features No. of respondents
4 Goodwill of the bank 10
5 Facilities provided 12
6 Minimum balance 30
Influencing features
No. of respondents
60 48
40 30 30 No. of
20
20 10 12 respondents
0
1 2 3 4 5 6
Features
Location of the bank is the most cherished feature; goodwill of the bank is the most
unwanted feature. However branch timings and the minimum balance are equally
important features.
No. of respondents
No. of respondents
150 124
100
No. of
42 respondents
50 19 17
12
0
1 2 3 4 5
Services
Most used service is ATM. Internet banking; doorstep banking and 24- hour banking are
also coming up as new sought after services. Information technology has changed the
face of the banking. More and more people now want to avail the services of the banks
without actually visiting the branch. Internet banking is the next big thing coming up.
No. of respondents
No. of respondents
80 65
60 48
No. of
40
18 respondents
20 5 3
0
1 2 3 4 5
Attributes
In general people think that the standard Chartered bank is very good bank. Only 3
people think that the bank is very poor.
80
respondents
58
60 41
No. of
40 Respondents
9 14 9 14
20 4
0
1 2 3 4 5 6 7
features
The features that bank to improve upon are no. of ATMs and branches. However with the
advancing technology emerging in the field of banking are internet and phone banking.
SCB needs to improve in this segment.
80
60 61
40 47 42
20 30 23 20
19 15
10 Series1
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0 7 5 4
0
Series2
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d
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ad
oo
oo
oo
ut Series3
B
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tg
G
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N
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Perception
The above graph shows that the perception of people about customer care and
personalized services of the SCB are more concentrated towards left side that is more
towards very good and good side. However it clearly shows that respondents are nutral or
less satisfied about the network of branches and ATMs. SCB should do some thing in this
regard as to bring this curve on the left side as well.
9. Which services of the Standard Chartered bank are you aware of?
most of the respondents have very less knowledge about the services of SCB. SCB
provides some of the most distinguished services like 24 hours and 365 days banking, but
it is found that very few people knew about these services.
10. Why have you not opened an account with Standard Chartered bank?
The graph above shows that the major factors against the SCB are location of branches,
charges of bank and minimum balance requirements.
Chapter 9
RECOMMENDATIONS
The bank needs to make a lot of marketing effort. The level of recognition that may be
desired by any brand has not been achieved by standard chartered bank. As said earlier it
is relationship of trust and this trust can be generated through better and better
performance of the bank.
The bank has to do corrective positioning of its brand. Most of the people think it to be
expensive bank. Being an MNC bank it is expensive than private banks so for this the
bank has to develop a distinctive advertising campaign to reposition the brand in potential
consumer’s mind.
PROMOTIONAL STRATEGIES
Press publicity:
Paper inserts
Outdoor publicity:
Media:
Cold calling
Generally people prefer strong networking system to make their banking life as
comfortable and reachable as possible. For standard chartered bank to enjoy a good
customer base they should make efforts towards developing more and more ATM’s in the
city and extension counters to facilitate better and fast service. Standard Chartered bank
was the very first bank to start few of the very good services like internet banking;
bringing about new service to attract more customers and it should carry on this tradition
further.
PRICING STRATEGY
Standard chartered bank should lower down minimum balance requirement limit to grab
a larger share of market. There are many customers who would like to maintain an
account with standard chartered once its minimum balance is lower down. It will also
place standard chartered competitively against private banks that are grabbing a big
chunk in total market.
MAKE THE BRANCH SELF INFORMATIVE
The branch should be decorated in a manner, which would provide maximum information
to the customers without any difficulty. All the schemes and products, all the schemes
and service charges, days and time of transactions should be printed in a beautiful manner
and hanged on the walls of the branch where customers can see with ease. These were the
things that were found to be absent in the branch. By doing so the customer would feel
more attached and it would result in higher number of accounts.
Lot of improvements can be done in standard chartered customer care cell. Bank should
arrange for regular appraisal and feedback for customers through effective means of
better communication with customer and to add to their satisfaction.
The bank should come up with new offers, which are specially designed for women and
children. Already some private and MNC banks have come up with this kind of offers.
Women today are independent and also represent a big market in metros and other big
cities. The bank should take initiative in this direction as soon as possible. They can also
start some accounts for youngsters mostly students.
Chapter 10
Strengths
Opportunities
Threats
CONCLUSION
The project report has been very transparent and decisive to conclude. With all certainty
it can be concluded that standard chartered bank has yet to come to their market
expectations but is moving consistently and aggressively with a very strong service and
facility base. The services which standard chartered is providing is quite improvised and
better in comparison to the other bank’s services. Standard chartered has the largest
coverage as compared to the other MNC bank’s in India. As standard chartered is present
in India for longer time than any other MNC bank in India, it has an edge of knowing
Indian customers in a better way.
The marketing mix of standard chartered is very well designed and thought of. Even for
surviving with other MNC bank’s in India it has to make its branch networking more
sprawling and penetrative by its needs.
Chapter 12
Bibliography
• HSBC Bank
• Citi Bank
• ABN Ambro
• Standard Chartered Bank
Annexure
Questionnaire
• Standard Chartered
• ABN Amro
• Citi Bank
• HSBC Bank
• Rest
• Standard Chartered
• ABN Amro
• Citi Bank
• HSBC Bank
• Rest
3. Which factor influences your decision the most while availing the services of the bank?
• ATM
• Door step banking
• Internet banking
• Multicity banking
• 24-hour banking
9. Which services (of the following) of Standard Chartered bank are you aware of?
• ATM
• Door step banking
• Internet banking
• 24 hour banking
• 365 days banking
• Credit card
10. Why have you not opened an account with Standard Chartered bank?
• Location of branches
• Facilities provided
• Charges of bank
• Goodwill of bank
• Customer care
• Minimum balance