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Project report On Retail Banking in Dhanalaxmi Bank In completion of Post graduate Diploma in Management (Banking and Finance)

Guided By: Dr.Meena Sharma

Submitted by: Prasni Prakash Roll No: 31

Certificate of Approval

This is to certify that the Caption Project titled Retail Banking in Dhanalaxmi Bank, submitted by Prasni Prakash, a student of Pillais Institute of Mnanagement Studies and Research, as a part of the curriculum of PGDM- (Banking and Finance) has been approved.

Prof.Dr. Meena Sharma

Dr.Vijayraghavan Director-PIMSR

Declaration
I Ms Prasni Prakash studying in PGDM-BFM of Pillais Institute of Management studies and research, new Panvel hereby declatre that I have completed this project on Retail Banking in Dhanalaxmi Bank, in the academic year 2012-2013.

The information and data given in this report is authentic to the best of m knowledge. This is report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship

Prasni Prakash

Acknowledgement
I take this opportunity to express my deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work. I am obliged to Dr. VIJAYARAGAVAN, Director, PIMSR, for providing me the right kind of opportunity and facilities to complete this venture. I heartily thank Ms. Ansa Joseph, Business development manager at Dhanalaxmi bank who provided me valuable suggestion and guidance at every stage. My heartfelt thanks to our respected faculty guide namely DR.Meena Sharma without her continuous help and suggestions at every step of the project would not have been materialized in the present form. I would also like to thank all the employees and friends of Dhanalaxmi bank for their kind cooperation, advice and encouragement during the long and arduous task of preparing this report and carrying out the project. Last but not the least I would like to extent my deep sense of gratitude to my family and all others who guided and helped me in preparing this report.

Chapter 1:Introduction
Retail banking is a typical mass market banking where individual customers use local branches of larger commercial banks. Services offered include savings and checking accounts, mortgages, personal loans, debit cards and so.

The retail banking environment today is changing fast. The changing costumer demographics demands to create a differentiated application based on scalable technology, improved services and banking technology. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as to ensure that the banks customer

gets uniformity and consistency of services delivery across time and at every touch point across all channels. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. High cost structure rendering mass market servicing is prohibitively expensive. Present day tech savvy bankers are now more looking at reduction in their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve their client base and economies of scale. The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches a multi channel bank and to eliminate the disadvantages of an inadequate branch network. Generation of leads to cross sell and creating additional revenues with utmost customer satisfaction has become focal point worldwide for the success of a bank.

Retail banking is, however, quite broad in nature it refers to the dealing of commercial banks with individual customers both on liabilities and asset side of the balance-sheet. Fixed, current/ savings account on the liabilities side and mortgages, loans (eg. Personal, housing, auto and educational )on the asset side are the more important of the products offered by banks. Related ancillary services include credit cards, or depository services. Retail banking refers to provision of banking services to individuals and small business where the financial institutions are dealing with large number of low value transactions. This in contrast to wholesale banking where the customers are large ,often multinational companies, governments and government enterprise, and the financial institution dealing small number of high value transactions. The concept is not new to banks but is now viewed as an important and attractive market segment that offers opportunities for growth and profits. Retail banking and retail lending are often used as synonyms but infact, the later is just the part of retail banking. In retail banking all the needs of individual customers are taken care of in a well-integrated manner

Todays retail banking sector is characterized by three basic characteristics: Multiple products (deposits, credit cards, insurance, investments and securities) Multiple channels of distribution (call centre, branch, internet) Multiple customer groups (consumer, small business, and corporate)

Benefits of Retail Banking


Traditional lending to the corporate are slow moving along with high NPA risk, treasure profits are now loosing importance hence Retail Banking is now an alternative available for the banks for increasing their earnings. Retail Banking is an attractive market segment having a large number focuses of v a r i e d classes of and customers. Retail Banking on individual

small units. Customize and wide ranging products are available. The risks spread and the recovery is good. Surplus deployable funds can be put into use by the banks. Products can be designed ,developed and marketed as per individual needs.

Situation analysis and problem definition

To study the various retail products offered by Dhanalaxmi bank and to find out the reasons of downfall of the bank. Comparison of Dhanalaxmi Bank products with those of other banks. Positioning of the various products in the market.

Research Methodology
Data collection techniques
The required data is collected both by primary as well as secondary sources.

Primary data
All the people from various profession and fields where personally visited and interviewed. They where the main source of primary data. The method of collection of collection of primary data was direct personal interview through a structured questionnaire.

Secondary data

It was collected through internal sources. The secondary data was collected on the basis of organizational file, official records, newspapers, magazines, management books and website of the company.

Objective of the study

To know the concept of retail banking in Dhanalaxmi bank To know about the awareness of the various products provided by Dhanalaxmi Bank To know about the competitive position of Dhanalaxmi Bank with the other players To study the effectiveness and efficiency of Dhanalaxmi Bank in relation to its competitors To study the benefits to the customers in availing the retail services provided by Dhanalaxmi Bank

Literature Review

Dhanalakshmi Bank Ltd was incorporated on 14th November 1927 by a group of enterprising entrepreneurs at Thrissur city, the "Cultural Capital of Kerala" with a capital of Rs 11,000 and 7 employees. It became a Scheduled Commercial Bank in the year 1977. It has today attained national stature with 275 branches and 404 ATMs spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi, West Bengal, Madhya Pradesh, Punjab, Uttar Pradesh, Rajastan, Chandigarh, Goa, and Hariyana. Current employee strength is around 4400. Retail products of Dhanalaxmi bank Accounts Savings Account Current Account Term Deposits

Loans Property Loans Car loans Commercial Loans Personal Loans Loan Against Securities Education Loan Business Loan Gift Cards Credit Cards Gold Credit Cards Platinum Credit Cards Debit Cards Depository Services Locker Facilities

Forex Services

Online Services Insurance Life Insurance General Insurance Mobile Banking

Scope of the study

All round increase in economic activity. Increase in the purchasing power .The rural areas have yhe large purchasing power at their disposal and this is an opportunity to market Retail Banking. India has 200 million households and 400 million middleclass population more than 90% of the savings come from the household sector. Increasing interest rates have resulted in a shift. Now people want to save more and spend less.

Nuclear family concept is gaining much of importance which may lead to large savings, large number of banking services to be provided are day-by-day increasing. Tax benefit are available for example in case of housing loans the borrower can avail tax benefits of the loan repayment and the interest charged for the loan

Limitations
It was difficult to obtain all the information directly from the bank employees. Due to the wide aspect the entire information could not be covered.

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