TABLE OF CONTENT

S.NO CONTENTS PAGE NO.

01 INTRODUCTION 03

02 COMPANY PROFILE 07-19

03 ABOUT CREDIT CARD 20-45

04 OBJECTIVE OF THE STUDY 46

05 RESEARCH METHODOLOGY 49-54

06 DATA ANALYSIS & INTERPRETATION 54-67

07 FINDINGS 68

08 SUGGESTION 71

09 CONCLUSION 72

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BIBLIOGRAPHY

ANNEXURE

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76

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CHAPTER NO-01

INTRODUCTION

CONSUMER BEHAVIOUR

Consumer behaviour is the study of when, why, how, and where people do or

do not buy product. It blends elements from psychology, sociology, social

anthropology and economics. It attempts to understand the buyer decision

making process, both individually and in groups. It studies characteristics of

individual consumers such as demographics and behavioural variables in an

attempt to understand people's wants. It also tries to assess influences on the

consumer from groups such as family, friends, reference groups, and society in

general. Customer behaviour study is based on consumer buying behaviour,

with the customer playing the three distinct roles of user, payer and buyer.

Relationship marketing is an influential asset for customer behaviour analysis as

it has a keen interest in the re-discovery of the true meaning of marketing

through the re-affirmation of the importance of the customer or buyer. A greater

importance is also placed on consumer retention, customer relationship

management, personalisation, customisation and one-to-one marketing. Social

functions can be categorized into social choice and welfare functions. Each

method for vote counting is assumed as a social function but if Arrow’s

possibility theorem is used for a social function, social welfare function is

achieved. Some specifications of the social functions are decisiveness,

neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and

strong Pareto optimality. No social choice function meets these requirements in

an ordinal scale simultaneously. The most important characteristic of a social

function is identification of the interactive effect of alternatives and creating a

logical relation with the ranks. Marketing provides services in order to satisfy

customers. With that in mind, the productive system is considered from its

beginning at the production level, to the end of the cycle, the consumer

(Kioumarsi et al., 2009).

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Belch and Belch define consumer behaviour as 'the process and activities people

engage in when searching for, selecting, purchasing, using, evaluating, and

disposing of products and services so as to satisfy their needs and desires'.'

Black box model

ENVIRONMENTAL

FACTORSBUYER'S BLACK BOX

BUYER'S

RESPONSEMarketing

Stimuli

Environmental

Stimuli

Buyer

Characteristics

Decision

Process

Product

Price

Place

Promotion

Economic

Technological

Political

Cultural

Demographic

Natural

Attitudes

Motivation

Perceptions

Personality

Lifestyle

Knowledge

Problem

recognition

Information

search

Alternative

evaluation

Purchase

decision

Post-purchase

behaviour

Product choice

Brand choice

Dealer choice

Purchase

timing

Purchase

amount

The black box model shows the interaction of stimuli, consumer characteristics,

decision process and consumer responses. It can be distinguished between

interpersonal stimuli (between people) or intrapersonal stimuli (within people).

The black box model is related to the black box theory of behaviourism, where

the focus is not set on the processes inside a consumer, but the relation between

the stimuli and the response of the consumer. The marketing stimuli are planned

and processed by the companies, whereas the environmental stimulus are given

by social factors, based on the economical, political and cultural circumstances

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of a society. The buyers black box contains the buyer characteristics and the

decision process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious,

rational decision process, in which it is assumed that the buyer has recognized

the problem. However, in reality many decisions are not made in awareness of a

determined problem by the consumer.

Information search

Once the consumer has recognised a problem, they search for information on

products and services that can solve that problem. Belch and Belch (2007)

explain that consumers undertake both an internal (memory) and an external

search.

Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information

search is perception. Perception is defined as 'the process by which an

individual receives, selects, organises, and interprets information to create a

meaningful picture of the world'

The selective perception process

Stage Description

- Selective exposure consumers select which promotional messages they will

expose themselves to.

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- Selective attention consumers select which promotional messages they will

pay attention to

- Selective comprehension consumer interpret messages in line with their

beliefs, attitudes, motives and experiences

-Selective retention consumers remember messages that are more meaningful or

important to them

The implications of this process help develop an effective promotional strategy,

and select which sources of information are more effective for the brand.CV

Information evaluation

At this time the consumer compares the brands and products that are in their

evoked set. How can the marketing organization increase the likelihood that

their brand is part of the consumer's evoked (consideration) set? Consumers

evaluate alternatives in terms of the functional and psychological benefits that

they offer. The marketing organization needs to understand what benefits

consumers are seeking and therefore which attributes are most important in

terms of making a decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a

purchase decision. Sometimes purchase intention does not result in an actual

purchase. The marketing organization must facilitate the consumer to act on

their purchase intention. The organisation can use variety of techniques to

achieve this. The provision of credit or payment terms may encourage purchase,

or a sales promotion such as the opportunity to receive a premium or enter a

competition may provide an incentive to buy now. The relevant internal

psychological process that is associated with purchase decision is

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integration.Once the integration is achieved, the organisation can influence the

purchase decisions much more easily.

Postpurchase evaluation

It is common for customers to experience concerns after making a purchase

decision. This arises from a concept that is known as “cognitive dissonance”.

The customer, having bought a product, may feel that an alternative would have

been preferable. In these circumstances that customer will not repurchase

immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to

persuade the potential customer that the product will satisfy his or her needs.

Then after having made a purchase, the customer should be encouraged that he

or she has made the right decision.it is not effected by advertisement.

Internal influences

Consumer behaviour is influenced by: demographics, psychographics

(lifestyle), personality, motivation, knowledge, attitudes, beliefs, and feelings.

consumer behaviour concern with consumer need consumer actions in the

direction of satisfying needs leads to his behaviour of every individuals depend

on thinking

External influences

Consumer behaviour is influenced by: culture,sub-culture, locality, royalty,

ethnicity, family, social class, reference groups, lifestyle, and market mix

factors.

Consumer behavior involves the psychological processes that consumers go

through in recognizing needs, finding ways to solve these needs, making

purchase decisions (e.g., whether or not to purchase a product and, if so, which

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brand and where), interpret information, make plans, and implement these plans

(e.g., by engaging in comparison shopping or actually purchasing a product).

Sources of influence on the consumer.  The consumer faces numerous sources

of influence. 

Often, we take cultural influences for granted, but they are significant.  An

American will usually not bargain with a store owner.  This, however, is a

common practice in much of the World.  Physical factors also influence our

behavior.  We are more likely to buy a soft drink when we are thirsty, for

example, and food manufacturers have found that it is more effective to

advertise their products on the radio in the late afternoon when people are

getting hungry.  A person’s self-image will also tend to influence what he or she

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will buy—an upwardly mobile manager may buy a flashy car to project an

image of success.  Social factors also influence what the consumers buy—often,

consumers seek to imitate others whom they admire, and may buy the same

brands.   The social environment can include both the mainstream culture (e.g.,

Americans are more likely to have corn flakes or ham and eggs for breakfast

than to have rice, which is preferred in many Asian countries) and a subculture

(e.g., rap music often appeals to a segment within the population that seeks to

distinguish itself from the mainstream population).   Thus, sneaker

manufacturers are eager to have their products worn by admired athletes. 

Finally, consumer behavior is influenced by learning—you try a hamburger and

learn that it satisfies your hunger and tastes good, and the next time you are

hungry, you may consider another hamburger.

Consumer Choice and Decision Making: Problem Recognition.  One model

of consumer decision making involves several steps. The first one is problem

recognition—you realize that something is not as it should be.  Perhaps, for

example, your car is getting more difficult to start and is not accelerating well.   

The second step is information search—what are some alternative ways of

solving the problem?  You might buy a new car, buy a used car, take your car in

for repair, ride the bus, ride a taxi, or ride a skateboard to work.  The third step

involves evaluation of alternatives.  A skateboard is inexpensive, but may be ill-

suited for long distances and for rainy days.   Finally, we have the purchase

stage, and sometimes a post-purchase stage (e.g., you return a product to the

store because you did not find it satisfactory).  In reality, people may go back

and forth between the stages.  For example, a person may resume alternative

identification during while evaluating already known alternatives.

Consumer involvement will tend to vary dramatically depending on the type of

product.  In general, consumer involvement will be higher for products that are

very expensive (e.g., a home, a car) or are highly significant in the consumer’s

life in some other way (e.g., a word processing program or acne medication).

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It is important to consider the consumer’s motivation for buying products.  To

achieve this goal, we can use the Means-End chain, wherein we consider a

logical progression of consequences of product use that eventually lead to

desired end benefit.  Thus, for example, a consumer may see that a car has a

large engine, leading to fast acceleration, leading to a feeling of performance,

leading to a feeling of power, which ultimately improves the consumer’s self-

esteem.  A handgun may aim bullets with precision, which enables the user to

kill an intruder, which means that the intruder will not be able to harm the

consumer’s family, which achieves the desired end-state of security.  In

advertising, it is important to portray the desired end-states.  Focusing on the

large motor will do less good than portraying a successful person driving the

car.

Information search and decision making.  Consumers engage in both internal

and external information search.  Internal search involves the consumer

identifying alternatives from his or her memory.  For certain low involvement

products, it is very important that marketing programs achieve “top of mind”

awareness.  For example, few people will search the Yellow Pages for fast food

restaurants; thus, the consumer must be able to retrieve one’s restaurant from

memory before it will be considered.  For high involvement products,

consumers are more likely to use an external search.  Before buying a car, for

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example, the consumer may ask friends’ opinions, read reviews in Consumer

Reports, consult several web sites, and visit several dealerships.  Thus, firms

that make products that are selected predominantly through external search must

invest in having information available to the consumer in need—e.g., through

brochures, web sites, or news coverage.

A compensatory decision involves the consumer “trading off” good and bad

attributes of a product.  For example, a car may have a low price and good gas

mileage but slow acceleration.  If the price is sufficiently inexpensive and gas

efficient, the consumer may then select it over a car with better acceleration that

costs more and uses more gas.  Occasionally, a decision will involve a non-

compensatory strategy.  For example, a parent may reject all soft drinks that

contain artificial sweeteners.   Here, other good features such as taste and low

calories cannot overcome this one “non-negotiable” attribute.

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CHAPTER NO-02

COMPANY PROFILE

ABOUT US

State Bank of India welcomes you to explore the world of premier bank in

India.

In this section, you can access detailed information on Overview of the Bank,

Technology Upgradation in the Bank, Board of Directors, Financial Results and

Shareholder Info.

The Bank is actively involved since 1973 in non-profit activity called

Community Services Banking. All our branches and administrative offices

throughout the country sponsor and participate in large number of welfare

activities and social causes. Our business is more than banking because we

touch the lives of people anywhere in many ways.

Our commitment to nation-building is complete & comprehensive.

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA

The State Bank of India, the country’s oldest Bank and a premier in terms of

balance sheet size, number of branches, market capitalization and profits is

today going through a momentous phase of Change and Transformation – the

two hundred year old Public sector behemoth is today stirring out of its Public

Sector legacy and moving with an agility to give the Private and Foreign Banks

a run for their money.

The bank is entering into many new businesses with strategic tie ups – Pension

Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,

Point of Sale Merchant Acquisition, Advisory Services, structured products etc

– each one of these initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new

banking models, to expand its Rural Banking base, looking at the vast untapped

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potential in the hinterland and proposes to cover 100,000 villages in the next

two years.

It is also focusing at the top end of the market, on whole sale banking

capabilities to provide India’s growing mid / large Corporate with a complete

array of products and services. It is consolidating its global treasury operations

and entering into structured products and derivative instruments. Today, the

Bank is the largest provider of infrastructure debt and the largest arranger of

external commercial borrowings in the country. It is the only Indian bank to

feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern

customer friendly processes to help improve the total customer experience.

With about 8500 of its own 10000 branches and another 5100 branches of its

Associate Banks already networked, today it offers the largest banking network

to the Indian customer. The Bank is also in the process of providing complete

payment solution to its clientele with its over 8500 ATMs, and other electronic

channels such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centres spread

all over the country the Bank is continuously engaged in skill enhancement of

its employees. Some of the training programes are attended by bankers from

banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as

Internationally. It presently has 82 foreign offices in 32 countries across the

globe. It has also 7 Subsidiaries in India – SBI Capital Markets, SBICAP

Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a

formidable group in the Indian Banking scenario. It is in the process of raising

capital for its growth and also consolidating its various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets,

attitudes and take all employees together on this exciting road to

Transformation. In a recently concluded mass internal communication

programme termed ‘Parivartan’ the Bank rolled out over 3300 two day

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workshops across the country and covered over 130,000 employees in a period

of 100 days using about 400 Trainers, to drive home the message of Change and

inclusiveness. The workshops fired the imagination of the employees with some

other banks in India as well as other Public Sector Organizations seeking to

emulate the programme.

 The CNN IBN, Network 18 recognized this momentous transformation

journey, the State Bank of India is undertaking, and has awarded the prestigious

Indian of the Year – Business, to its Chairman, Mr. O. P. Bhatt in January 2008.

INVESTOR RELATIONS

State Bank of India, the country’s largest commercial Bank in terms of profits,

assets, deposits, branches and employees, welcomes you to its ‘Investors

Relations’ Section. SBI, with its heritage dating back to the year 1806, strives to

continuously provide latest and upto date information on its financial

performance. It is our endeavor to walk on the path of transparency and allow

complete access to all the stakeholders enabling total awareness about the Bank.

The Bank communicates with the stakeholders through a variety of channels,

such as through e-mail, website, conference call, one-on-one meeting, analysts’

meet and attendance at Investor Conference throughout the world.

Please find below Bank’s financial results, analysis of performance and other

highlights which will be of interest to Investors, Fund Managers and Analysts.

SBI has always been fundamentally strong in its core business which is

mirrored in its results – year after year.

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Our commitment to nation-building is complete & comprehensive.

Central Board of State Bank of India

(As on 13th May 2009) 

Sr. No. Name of Director Sec. of SBI Act, 1955

1.Shri O.P. Bhatt

Chairman19(a)

2.Shri S.K. Bhattacharyya

MD & CC&RO19(b)

3.Shri R. Sridharan

MD & GE(A&S)19(b)

4. Dr. Ashok Jhunjhunwala 19(c)

5. Shri Dileep C. Choksi 19(c)

6. Shri S. Venkatachalam 19(c)

7. Shri. D. Sundaram 19(c)

8. Dr. Deva Nand Balodhi 19(d)

9. Prof. Mohd. Salahuddin Ansari 19(d)

10. Dr.(Mrs.) Vasantha Bharucha 19(d)

11. Dr. Rajiv Kumar 19(d)

12. Shri Ashok Chawla 19(e)

13. Smt. Shyamala Gopinath 19(f)

 

PERSONAL BANKING

Welcome to SBI's Retail Banking

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State Bank of India offers a wide range of services in the Personal Banking

Segment which are indexed here.

Our products are designed with flexibility to suit your personal requirements. Enjoy 24 hour facility through our

ATMs - growing speedily it has crossed the 5000 mark Watch this space for more details.

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

SBI Personal Loan Rates Of Interest

Experience a whole new world of banking at our newly opened Personal

Banking Branches (PBBs)- often dubbed boutique branches by others.

Customer friendly knowledgeable staff will cater to your financial requirements

with speed and efficiency. Do visit one and find out for yourself. for addresses

of our PBBs.

DEPOSIT SCHEMES

Whatever your needs - an investment of your surplus funds or to create a fund

for your childrens' education and marriage. You will find a product from SBI

that suits your requirement, delivered at a branch close to you.

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 Open an account with any of our branches, all of them are fully computerised,

and realise the advantage of our vast network. Place funds in Multi Option

Deposit Scheme, a term deposit which is not fixed at all and comes with a

unique break-up facility which provides you full liquidity as well as benefits of

higher rates of returns, through your savings bank account. Alternately, keep

that deposit intact by availing an overdraft facility, to meet your occasional

temporary funds requirements.

 Want to build up savings slowly? Discover our Recurring Deposit Account.

You can save a little every month to build up the desired corpus to meet your

future requirement of funds.

 Our products are designed with flexibility to suit your personal requirements.

Enjoy 24 hour banking facility through our Internet Banking/ widest network of

ATMs. Please watch this space for more details. 

Current Account Savings Plus Account

Savings Bank Account Basic Banking 'No frills Account'

Term Deposits Recurring Deposit Account

Special Term Deposits PREMIUM SAVINGS ACCOUNT

Multi Option Deposit

Scheme

 Rate of Interest on Domestic Term

Deposits

Scheme  SBI Tax Savings Scheme, 2006

The Industrial Development Bank of India Limited commonly known by its

acronym IDBI is one of India's leading public sector banks and 4th largest Bank

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in overall ratings. RBI categorised IDBI as an "other public sector bank". It was

established in 1964 by an Act of Parliament to provide credit and other facilities

for the development of the fledgling Indian industry. It is currently 10th largest

development bank in the world in terms of reach with 1228 ATMs, 720

branches and 486 centers. Some of the institutions built by IDBI are the

National Stock Exchange of India (NSE), the National Securities Depository

Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the

Credit Analysis & Research Ltd, the Export-Import Bank of India(Exim Bank),

the Small Industries Development bank of India(SIDBI), the Entrepreneurship

Development Institute of India, and IDBI BANK, which today is owned by the

Indian Government, though for a brief period it was a private scheduled bank.

Recent Development

To meet emerging challenges and to keep up with reforms in financial sector,

IDBI has taken steps to reshape its role from a development finance institution

to a commercial institution. With the Industrial Development Bank (Transfer of

Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited

company viz. "Industrial Development Bank of India Limited" (IDBIL).

Subsequently, the Reserve Bank of India (RBI) issued the requisite notification

on September 30, 2004 incorporating IDBI as a 'scheduled bank' under the RBI

Act, 1934. Consequently, IDBI, formally entered the portals of banking

business as IDBIL from October 1, 2004.

The commercial banking arm, IDBI BANK, was merged into IDBI. In March

2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis

Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank

owns 48 percent. The company ended the year with over 300 Cr in premiums as

on 31 March 2009.

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Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on July 1,

1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve

Bank of India. In 16 February 1976, the ownership of IDBI was transferred to

the Government of India and it was made the principal financial institution for

coordinating the activities of institutions engaged in financing, promoting and

developing industry in the country. Although Government shareholding in the

Bank came down below 100% following IDBI’s public issue in July 1995, the

former continues to be the major shareholder (current shareholding: 52.3%).

During the four decades of its existence, IDBI has been instrumental not only in

establishing a well-developed, diversified and efficient industrial and

institutional structure but also adding a qualitative dimension to the process of

industrial development in the country. IDBI has played a pioneering role in

fulfilling its mission of promoting industrial growth through financing of

medium and long-term projects, in consonance with national plans and

priorities. Over the years, IDBI has enlarged its basket of products and services,

covering almost the entire spectrum of industrial activities, including

manufacturing and services. IDBI provides financial assistance, both in rupee

and foreign currencies, for green-field projects as also for expansion,

modernisation and diversification purposes. In the wake of financial sector

reforms unveiled by the government since 1992, IDBI evolved an array of fund

and fee-based services with a view to providing an integrated solution to meet

the entire demand of financial and corporate advisory requirements of its

clients. IDBI also provides indirect financial assistance by way of refinancing of

loans extended by State-level financial institutions and banks and by way of

rediscounting of bills of exchange arising out of sale of indigenous machinery

on deferred payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (1964–

91),in catalyzing broad based industrial development in the country in keeping

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with its Government-ordained ‘development banking’ charter. In pursuance of

this mandate, IDBI’s activities transcended the confines of pure long-term

lending to industry and encompassed, among others, balanced industrial growth

through development of backward areas, modernisation of specific industries,

employment generation, entrepreneurship development along with support

services for creating a deep and vibrant domestic capital market, including

development of apposite institutional framework.

Narasimam committee recommends that IDBI should give up its direct

financing functions and concentrate only in promotional and refinancing role.

But this recommendation was rejected by the government. Latter RBI

constituted a committee under the chairmanship of S.H.Khan to examine the

concept of development financing in the changed global challenges. This

committee is the first to recommend the concept of universal banking. The

committee wanted to the development financial institution to diversify its

activity. It recommended to harmonise the role of development financing and

banking activities by getting away from the conventional distinction between

commercial banking and developmental banking.

In September 2003, IDBI diversified its business domain further by acquiring

the entire shareholding of Tata Finance Limited in Tata Home finance Ltd.,

signaling IDBI’s foray into the retail finance sector. The fully-owned housing

finance subsidiary has since been renamed ‘IDBI Home finance Limited’. In

view of the signal changes in the operating environment, following initiation of

reforms since the early nineties, Government of India has decided to transform

IDBI into a commercial bank without eschewing its secular development

finance obligations. The migration to the new business model of commercial

banking, with its gateway to low-cost current, savings bank deposits, would

help overcome most of the limitations of the current business model of

development finance while simultaneously enabling it to diversify its client/

asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act

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2003 was passed by Parliament in December 2003. The Act provides for repeal

of IDBI Act, corporatisation of IDBI (with majority Government holding;

current share: 58.47%) and transformation into a commercial bank. The

provisions of the Act have come into force from July 2, 2004 in terms of a

Government Notification to this effect. The Notification facilitated formation,

incorporation and registration of Industrial Development Bank of India Ltd. as a

company under the Companies Act, 1956 and a deemed Banking Company

under the Banking Regulation Act 1949 and helped in obtaining requisite

regulatory and statutory clearances, including those from RBI. IDBI would

commence banking business in accordance with the provisions of the new Act

in addition to the business being transacted under IDBI Act, 1964 from October

1, 2004, the ‘Appointed Date’ notified by the Central Government. IDBI has

firmed up the infrastructure, technology platform and reorientation of its human

capital to achieve a smooth transition.

IDBI Bank, with which the parent IDBI was merged, was a vibrant new

generation Bank. The Pvt Bank was the fastest growing banking company in

India. The bank was pioneer in adapting to policy of first mover in tier 2 cities.

The Bank also had the least NPA and the highest productivity per employee in

the banking industry.

On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in

principle approval to the merger of IDBI Bank with the Industrial Development

Bank of India Ltd. to be formed incorporated under the Companies Act, 1956

pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of

2003), subject to the approval of shareholders and other regulatory and statutory

approvals. A mutually gainful proposition with positive implications for all

stakeholders and clients, the merger process is expected to be completed during

the current financial year ending March 31, 2005.

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The immediate fall out of the merger of IDBI and idbi bank was the exit of

employees of idbi bank. The cultures in the two organizations have taken its

toll. The IDBI BANK now is in a growing fold. With its retail banking arm

expanding further after the merger of United western Bank.

IDBI would continue to provide the extant products and services as part of its

development finance role even after its conversion into a banking company. In

addition, the new entity would also provide an array of wholesale and retail

banking products, designed to suit the specific needs cash flow requirements of

corporates and individuals. In particular, IDBI would leverage the strong

corporate relationships built up over the years to offer customised and total

financial solutions for all corporate business needs, single-window appraisal for

term loans and working capital finance, strategic advisory and “hand-holding”

support at the implementation phase of projects, among others.

IDBI’s transformation into a commercial bank would provide a gateway to low-

cost deposits like Current and Savings Bank Deposits. This would have a

positive impact on the Bank’s overall cost of funds and facilitate lending at

more competitive rates to its clients. The new entity would offer various retail

products, leveraging upon its existing relationship with retail investors under its

existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI

hopes to realize its mission of positioning itself as a one stop super-shop and

most preferred brand for providing total financial and banking solutions to

corporates and individuals, capitalising on its intimate knowledge of the Indian

industry and client requirements and large retail base on the liability side.

IDBI upholds the highest standards of corporate governance in its operations.

The responsibility for maintaining these high standards of governance lies with

its Board of Directors. Two Committees of the Board viz. the Executive

Committee and the Audit Committee are adequately empowered to monitor

23

implementation of good corporate governance practices and making necessary

disclosures within the framework of legal provisions and banking conventions.

Industrial Investment Bank of India Ltd.

The industrial investment bank of India is one of oldest banks in India. The

Industrial Reconstruction Corporation of India Ltd., set up in 1971 for

rehabilitation of sick industrial companies, was reconstituted as Industrial

Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to

converting the institution into a full-fledged development financial institution,

IRBI was incorporated under the Companies Act, 1956, as Industrial Investment

Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of products

and services, including term loan assistance for project finance, short duration

non-project asset-backed financing, working capital/ other short-term loans to

companies, equity subscription, asset credit, equipment finance as also

investments in capital market and money market instruments.

In view of certain structural and financial problems adversely impacting its

long-term viability, IIBI submitted a financial restructuring proposal to the

Government of India on July 25, 2003. IIBI has since received certain directives

from the Government of India, which, inter alias, include restricting fresh

lending to existing clients approved cases rated corporates, restrictions on fresh

borrowings, an action plan to reduce the overhead expenditure, disposal of fixed

assets and a time-bound plan for asset recovery/reconstruction. The Government

of India had also given its approval for the merger of IIBI with IDBI and the

latter had already started the due diligence process.

But on December 17 2005 the IDBI rejected any such merger.

24

Acquisition of United Western Bank

In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb

Chirmule, who worked for the cause of Swadeshi movement, founded Satara

Swadeshi Commercial Bank in 1907, and some three decades later founded

United Western Bank. The bank was incorporated in 1936, and commenced

operations the next year, with its head office in Satara, in Maharashtra State. It

became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of

Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank. At the time of

the merger with IDBI, United Western had some 230 branches spread over 47

districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune,

Kolhapur, Jalgaon and Nagpur.

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About company

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00

billion (US$ 81 billion) at March 31, 2010 and profit after tax Rs. 40.25 billion

(US$ 896 million) for the year ended March 31, 2010. The Bank has a network

of 2,009 branches and about 5,219 ATMs in India and presence in 18 countries.

ICICI Bank offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and

through its specialised subsidiaries in the areas of investment banking, life and

non-life insurance, venture capital and asset management. The Bank currently

has subsidiaries in the United Kingdom, Russia and Canada, branches in United

States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai

International Finance Centre and representative offices in United Arab

Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.

Our UK subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and

the National Stock Exchange of India Limited and its American Depositary

Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Group Companies

ICICI Group

ICICI Prudential Life Insurance Company

ICICI Securities

ICICI Lombard General Insurance Company

ICICI Prudential AMC & Trust

ICICI Venture

ICICI Direct

ICICI Foundation

Disha Financial Counselling

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PRODUCTS PROVIDED BY ICICI BANK

Savings account :

o Balance Enquiry Statement of account

o Cheque status enquiry Stop Payment

o Cheque book request

o Dial-a- draft/payorder

o ATM lost card reporting

o Request for a new ATM PIN

Fixed Deposits:

o Opening a Fixed Deposit

o Checking Fixed Deposit details

o Request for TDS statement

Credit Cards:

o Balance and account related inquiries Statement of account

o Dial a draft/payorder

o Lost/Replacement card

o ATM pin re-issue

o Payment instructions (maybe through a letter to the Call Centre)

Others:

o Standing Instructions

o Complaints and suggestions

o Inquire about any ICICI retail product

Cards

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Credit Cards

Add value to your shopping and shop smart.

Debit Cards

Access your bank account anywhere, anytime.

Benefits

Wide Acceptability: Enjoy purchases across 3,50,000 shopping outlets

in India and around 24 million outlets worldwide.

Online Shopping: Buy anything online, and experience the convenience

of your Debit Card. Reserve train, airline and movie tickets or buy gifts

for loved ones. You can even pay your electricity, mobile phone and

other bills online with the added security of Internet Banking user ID and

password.

Prepaid Cards

Ensure safe and convenient payments.

Commercial Cards

ICICI Bank’s Commercial Cards offer simple and convenient solutions to meet

the payment requirements of your organisation.

ICICI Bank Commercial Cards have been designed as payment solutions for

large & mid-sized organizations. A widely accepted concept internationally,

Commercial Cards help to better streamline payment processes & thus increase

efficiencies.  

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Corporate Platinum

& Gold Card  Purchase Card   DriveTrack Card  

     

The ICICI Bank

Corporate Card

Programme delivers

greater control,

enhanced efficiencies

and higher savings to

your company. The

programme combines

the power of a

corporate card with on-

line reporting

capabilities and

dedicated account

management.

 

ICICI Bank's Corporate

Purchasing Solution is

designed to address the

has been designed to

address the non-

strategic, low value

purchases that consume

80% of a company's

transaction volume.

Through a Purchase

Card, all such

purchases can be

 

DriveTrack Fleet Card:

ICICI Bank and HPCL

jointly offer a fleet

management

programme DriveTrack

for fleet owners.

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About HDFC BANK

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

Accounts & Deposits

SAVING ACCOUNT

These accounts are primarily meant to inculcate a sense of saving for the future,

accumulating funds over a period of time. Whatever your occupation, we are

confident that you will find the perfect banking solution. Open an account in

your name or register for one jointly with a family member today.

Regular  Salary    Savings Plus    Classic    SavingsMax    Payroll    No Frills   

Regular    Senior Citizens    Premium    Retail Trust    Defence   Kids

Advantage    Kisan No Frills Savings   Pension Savings  Reimbursement  

Family Savings        Kisan Club Savings 

Regular saving account

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through NetBanking, PhoneBanking and MobileBanking.  Need money urgently? Withdraw cash from any of the 4,232 ATM centres spread across the country.     

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Features & Benefits

Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located.Bank conveniently with facilities like NetBanking and MobileBanking- check your account balance, pay utility bills or stop cheque payment, through SMS.Never overspend- Shop using your International Debit Card that reflects the actual balance in your savings account.Personalised cheques with your name printed on each cheque leaf for enhanced security.Take advantage of BillPay, an instant solution to all your frequent utility bill payments. Instruct for payment over the phone or through the Internet.Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on your account.Free cash withdrawals on any other Bank's ATM*Free Payable-at-Par chequebook, without any usage charges upto a limit of Rs.50,000/- per month.Free InstaAlerts for all account holders for lifetime of the account.Free Passbook facility available at home branch for account holders (individuals).Free Email Statement facility.

Saving plus accountIntroducing the best banking option for you with HDFC Bank Savings Plus Account. Now you can get access to some of the finest banking facilities with HDFC Bank's Savings Plus Account. All you have to do is maintain an Average Quarterly Balance of Rs. 10,000/- and experience the benefits as mentioned below:

Features & Benefits

Wide network of branches and over thousand ATMs to meet all your banking needs no matter where you are located.Free cash withdrawals on any other Bank's ATM*.Free International Debit Card for all account holders for life time of the

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account.Free Payable-at-Par (PAP) chequebook, without any usage charges upto a limit of Rs. 50,000 per month. Above Rs. 50,000, charge of Rs.2.90/- per Rs. 1,000/- on the full amount.Free Demand Drafts on HDFC Bank locations, upto a limit of 25,000/- per day.Free BillPay & InstaAlerts for all account holders for lifetime of the accountFree Electronic Funds Transfer facility, NetBanking, PhoneBanking & MobileBankingSpecial relationship discount on purchase of Gold Bars25%-off on the Locker rental for the 1st year (only).Intercity Banking / Multi-city Banking.Free Passbook facility available at home branch for account holders (individuals).Free Email Statement facility.

PRODUCTS OF HDFC BANK

 

Accounts & Deposits

Savings Accounts

Regular Savings Account

Savings Plus Account

SavingsMax Account

Senior Citizens Account

No Frills Account

Institutional Savings Account

Salary Accounts

PayrollClassicRegularPremiumDefence No Frills Salary

Loans

Personal Loans

SmartDraft

Home Loans

Two Wheeler Loans

New Car Loans

Used Car Loans

Gold Loan

Educational Loan

Loan Against Securities

Loan Against Property

Loans Against Rental Receivables

Health Care Finance

Retail Agri Loans

Investments & Insurance

Wealth Advisory Services

Mutual Funds

Tax Planning

Insurance

General & Health Insurance

Bonds

Knowledge Centre

Equities & Derivatives

Mudra Gold

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Account Reimbursement Current Account

Kid's Advantage Account

Pension Saving Bank Account

Family Savings Group

Kisan No Frills Savings

Kisan Club Savings

Current Accounts

Plus Current Account

Trade Current Account

Premium Current Account

Regular Current Account

RFC - Domestic Account

Flexi Current Account

Apex Current Account

Max Current Account

Merchant Advantage Current Account

Merchant Advantage Plus Current Account

Fixed Deposits

Regular Fixed Deposit

5 Year Tax Saving Fixed Deposite

Super Saver Facility

Sweep-in Facility

Recurring Deposit

Demat Account

Safe Deposit Lockers

HDFC Bank Imperia / Preferred / Classic Banking

Imperia Premium Banking

Tractor Loans

Commercial Vehicle Finance

Working Capital Finance

Construction Equipment Finance

Warehouse Receipt Loans

Cards

Credit Cards

Silver Credit Card

Value Plus Credit Card

Gold Credit Card

Titanium Credit Card

Woman's Gold Credit Card

Platinum Plus Credit Card

Visa Signature Credit Card

World MasterCard Credit Card

Corporate Platinum Credit Card

Corporate Credit Card

Business Platinum Credit Card

Business Gold Credit Card

Purchase Card

Distributor Card

Debit Cards

EasyShop International Debit Card

EasyShop Gold Debit Card

EasyShop International Business Debit Card

Bar

Mudra Silver Bar

Forex Services

Products & Services

Trade Services

Forex Services Branch Locator

RBI Guidelines

Forex Limits

Payment Services

NetSafe

Merchant Services

Prepaid Refill

ngpay

BillPay

Visa BillPay

PayNow

Register & Pay

InstaPay

DirectPay

mChek

Visa Money Transfer

RTGS Funds Transfer

e-Monies Electronic

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Preferred Banking

Classic Banking

EasyShop Woman's Advantage Debit Card

EasyShop Titanium Debit Card

EasyShop NRO Debit Card

Prepaid Cards

ForexPlus Card

GiftPlus Card

FoodPlus Card

MoneyPlus Card

ForexPlus Chip Card

Funds Transfer

Excise & Service Tax Payment

Online Payment of Direct Tax

Online payment of DVAT

Online payment of Gujarat VAT

Religious Offerings

Donate to Charity

Access Your Bank

NetBanking

Credit Cards Online

OneView

InstaAlerts

MobileBanking

ATM

PhoneBanking

Email

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35

CHAPTER NO-03

OBJECTIVE OF

THE STUDY

OBJECTIVE OF THE STUDY

1. To know about Consumer Behavior in Public & Private sector Bank.

2. To compare the services of Private & Public sector bank.

3. To determine that how the Banks attract to customers for policies.

4. To study about the banking services of SBI, IDBI, ICICI & HDFC Bank.

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37

CHAPTER NO-05

RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It

my be understood as a science of studying how research is done systematically

& scientifically. In it we study the various steps that are generally adopted by a

researcher in studying his research problem along with the logic behind them.

Researcher also need to understand the assumptions underlying various

techniques they need to know the criteria by which they can decide that certain

techniques & procedures will be applicable to the certain problems and other

will not.

RESEARCH PROCESS

Research process consist of action or steps necessary for effective carry out

research and the desired of this steps-

1. Formulating the Research problem- The best way of understanding the

problem is to discuss it with ones own colleagues or with those having some

expertise in the matter.

2. Extensive Literature Survey- After formulating the problem a brief

summery of its should be written down. At this function research should

undertake extensive literature survey concerned with the problem.

3. Development of working hypothesis- After extensive literature survey,

researcher should state in clear terms the working hypothesis.

4. Preparing the research design- The research problem has bee

formulated in clear cut terms. The researcher will be required to prepare a

research design.

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Basically there are three types of research design.

- Exploratory research design.

- Descriptive research design.

- Hypothesis testing design.

5. Determining the sample designs- All the items under consideration in

any field of inquiry constitute a universe or population. There are two types of

sampling method are used to design sample.

- Random sampling

- Non random sampling

The success of the analysis mostly depends on the methodology on which it is

carried out. The appropriate methodology will improve the validity of the

findings.

Data Collection:

The study is based on the data collected through primary and

secondary sources.

Primary Data:

An interview schedule and Questionnaire was designed to collect

primary data from various customer of Public & Private sector bank.

Secondary Data:

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Secondary data was collected from journals, magazines, web sites

and from other relevant publications.

Sampling Design:

The sampling design mainly consists of the sample taken for the study

along with the sample size, sample frame and sampling method.

Sample Size:

From the universe, sample sizes of 50 customers were selected for

the purpose of the study.

Sample Frame:

The customers were selected on a random basis from which the

respondents were selected based on convenience.

Sampling Method:

Convenience sampling was used, based on the willingness and

availability of the respondents. The study was conducted on consumers with

different type of business.

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TOOLS AND TECHNIQUES

As no study could be successfully completed without proper tools and

techniques, same with my project. For the better presentation and right

explanation I used tools of statistics and computer very frequently. And I am

very thankful to all those tools for helping me a lot. Basic tools which I used for

project from statistics are-

- Pie charts

- Tables

bar charts and pie charts are really useful tools for every research to show the

result in a well clear, ease and simple way. Because I used bar charts and pie

charts in project for showing data in a systematic way, so it need not necessary

for any observer to read all the theoretical detail, simple on seeing the charts

any body could know that what is being said.

Technological Tools

Ms-Word

Ms-excel

Internet

Above application software of Microsoft helped me a lot in making project

more interactive and productive.

Microsoft-Excel had a great role in my project, it created for me a situation of

“you sit and get”. I provided it simply all the detail of data and in return it given

me all the relevant information..

Microsoft-Access did the performance of my personal assistant who organizes

my all the details of document without disturbing them even a single time in all

the project duration.

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And in last Microsoft-Word did help me for the documentation of the project in

a presentable form.

SCOPE OF THE STUDY

In Indian Banking sector includes many players, but out of these players I

have selected only the Four Banks SBI , IDBI & ICICI, HDFC bank .The study

gave me a chance to carry Comparative analysis of consumer behavior along

with its various tools used in analysis which helps to understand the basics of

Consumer Behavior in Public & Private sector Bank and provides the tools that

help to decide which companies make worthwhile investments. This type of

analysis examines key products and policies of Banks. .The scope of project

extends to the study of 4 key players of Indian Banking sector . The study was

mainly based on the Consumer Behavior in Public & Private sector Bank.

LIMITATIONS

Despite the possible efforts in concluding the research, they were some

unavoidable situations, which limited the scope of the project.

1. The study was restricted to Bhopal.

2. Time was the biggest constraint as all questionnaires were to be filled in

person to actual views, but all efforts were made to get information

relevant to the research.

3. There may be some disepecies in views as some, people might give false

information in questionnaire, as they might not be in filling the form.

4. The sample size of 50 is small so there may be difference in the reality

and the findings.

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43

CHAPTER NO-06

DATA

ANALYSIS &

INTERPRETATION

44

45

CHAPTER NO-07

FINDING

46

CHAPTER NO-08

SUGGESTION

SUGGESTION

1. Company should advertisement through various things i.e advertisement

through print media electronic media and distribution network.

2. As we have seen in the study persons are must affected by price & quality

factor. The company should concentrate over the price factor of the

program so that new customer could be attracted to wards the program

although quality factor of the program is satisfactory.

3. The company must conducted the satisfaction survey time to time so

that company could know the satisfaction level of the consumer. It will be

more beneficial to company in making new strategies & policies.

4. Most of the person, which participated in the survey have said that the

program should be divided in to small packages. So that any one could

buy it easily.

5. The company price should be kept low in comparison to competitors

product price so that company can earn more profit by selling large

volume.

6. The company’s awareness is low, the company should be more

concentrate to increase the awareness of the company. The company can

use many marketing total to perform this work.

7. The company should be conducted the demo of program complaint,

policies & suggestion. It can improved it market share and consumer

satisfaction.

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48

CHAPTER NO-09

CONCLUSION

CONCLUSION

The bank needs to make people aware about there products and the basic

benefits they can derive out of it.

Aggressive Marketing is the key to increasing the market share in this area,

since the market has a lot of potential both in terms of untapped market

Almost Both the Banks offer similar features and facilities with their Products.

There are certain reasons for existing customers of credit card of any Bank to

shift to another Bank.

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50

CHAPTER NO-10

BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS

Marketing Management Philip Kotler, The Millennium Edition,

Prentice Hall Of India Private Limited, New Delhi.

A. Aaker, David. Strategic Market management. New York: John

Wiley & Sons,2001, pp.154-162.

Levy, Michael. A. Weitz .Barton. Retailing Management. New York:

McGrew-Hill,2004,pp.6-8, 627

Palmer, Adrian. Introduction to Marketing. India: Oxford University

Press,2004, pp.350-351,363.

1. MAGAZINES REFFERED:

INDIA TODAY

BUSINESS TIMES

2. WEBSITES REFFERED:

www.icicibank.com

www.sbi.com

www.indianinfoline.com

www.creditcardsbasic.com

3. SEARCH ENGINES:

www.google.co.in

www.wikipedia.org.in

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CHAPTER NO-11

ANNEXURE

QUESTIONNAIRE

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