A

Project Report
on
“COMPARATIVE ANALYSIS
OF
FINANCIAL PRODUCTS AND SERVICES
OF
INDUSIND BANK”

Submitted in Partial fulfillment of the requirement for the award of the Degree of
Master of Business Administration.

Name of the Candidate : Ritika Garg

Reg. No. : 09P35H0142
Name of the Specialization : Finance
Partner Institution : IBMR Business School, Gurgaon

Under the guidance of

MS. RENUKA GARG
(Asst. Professor, IBMR Business School, Gurgaon)

Centre for Participatory and Online Programmes

Bharathiar University
Coimbatore – 641 046

(2009-2011)
 DECLARATION
I hereby declare that this project work titled “Comparative analysis of financial products and

services of Indusind bank” is a record of Original work done by me under the guidance of Ms.

Renuka Garg (Asst. Professor, IBMR Business School, Gurgaon) and that this project work has not

formed the basis for the award of any Degree/Diploma/Associate ship/Fellowship or similar title to

any candidate of any University.

Signature of the candidate

Name: Ritika Garg

Result:

Course with Specialization : (MBA Finance)

Date:

Countersigned by the Guide

(with seal)
 ACKNOWLEDGEMENT
“I have searched for the definition of success, in the context of leading a successful life. It turns

out that there are as many definitions as there are seekers and that success lies as much in the

attempt as in the achievement.” - Robert Frost

I have immense pleasure to express my sincere gratitude to Dr. Narayanan, Dean of IBMR

Business School, Gurgaon for providing me a platform to endorse my practical knowledge and

pursue my goals by giving such a project during our session.

I would like to sincerely thank all those people who gave their constructive input in the completion

of this project and to all those who untiringly guided me. I am indebted to all those people who have

contributed time, encouragement, information and assistance or in some manner enabled me to learn,

to grow in experience to develop a better understanding.

I express my sincere thanks to my Mentor Mr. Saket Mishra (Regional sales Manager) for

guiding me right from the inception till the successful completion of the project. I sincerely

acknowledge them for extending their valuable guidance, support for literature, critical reviews of

project and the report and above all the moral support they had provided to me with all stages of this

project. I would also like to thank the supporting staff Mr. Sanjay Gupta (Territory Sales

Manager) for his help and cooperation throughout my project.

I would like to politely extend my gratitude to my guide Asst. Professor Ms. Renuka Garg for her

kind assistance, able guidance and moral support that influenced me to try and put my best efforts in

every task assigned to me.

Last but not the least I would like to thank my parents for their words of encouragement and

guidance all throughout the way.

(Ms. Ritika Garg)

EXECUTIVE SUMMARY
The banking sector in India has become very much competitive in last few years with the increasing

growth of private and public sector banks. Day by day the competition is most stringent and crucial.

I completed my summer internship at Indusind bank, Jaipur as a trainee. The project entitled

“COMPARATIVE ANALYSIS OF VARIOUS PRODUCTS AND SERVICES OFFERED BY

INDUSIND BANK” helped the bank to understand the scope of retail banking in certain areas of

Jaipur city. Products which have been covered in the study were saving a/c, current a/c, fixed

deposits and loans provided by the bank.

The basic aim behind preparing the report is to know where financial products and services of

Indusind Bank stand in the Indian market. Who are the major competitors of Indusind bank

including both multinational bank and private sector bank. Are the customers of Indusind bank

satisfied with the products and services offered by the bank. The study also aimed at knowing that if

the bank is able to give what it promises and if it is successful in the Indian market or not.

The utility of the project can be derive from the fact that today banks have diversified products. Now

saving account have many types of accounts. Current accounts have new face i.e. roaming current

account. Now Central bank came up with the idea of NO FRILLS account.

This project includes one fold study. To gather a brief knowledge about financial products of

Indusind bank like saving account, current account, term deposits, recurring deposits, overdrafts,

loans etc. and services like phone banking, SMS banking, net banking etc. To understand the

customers’ behavior, their expectations and strategies, how they react if any change occurs in

methods, policies, interest rates, returns provided by the related bank.

CONTENTS
Chapter No. Particulars Page No.

1 Introduction

1.1 Company introduction

1.2 Industry introduction
1.3 Introduction to basic banking

2 Research methodology
2.1 Research
2.2 Objectives
2.3 Process of research methodology
2.4 Tools and techniques used for data collection

2.5 Limitations of research

3 Products and services

3.1 Saving account
3.2 Current account
3.3 Credit cards

3.4 Services

4 Data analysis and interpretation

4.1 Comparative analysis of banking services of

Indusind bank and other multinational banks

4.2 Comparative analysis of banking services of

Indusind bank and private & public sector banks

4.3 Analysis of primary data

5 SWOT analysis
Findings and Conclusion
Recommendations
Annexure i Financial report
Annexure ii Questionnaire
Bibliography
 CHAPTER 1

INTRODUCTION

1.1) COMPANY INTRODUCTION

Indusind Bank derives its name and inspiration from the Indus Valley civilization - a culture

described by National Geographic as 'one of the greatest of the ancient world' combining a spirit of

innovation with sound business and trade practices.

Mr. Srichand P. Hinduja, a leading Non-Resident Indian businessman and head of the Hinduja

Group, conceived the vision of Indusind Bank - the first of the new-generation private banks in India

- and through collective contributions from the NRI community towards India's economic and social

development, brought our Bank into being.

The Bank, formally inaugurated in April 1994 by Dr. Manmohan Singh, Honorable Prime Minister

of India who was then the country’s Finance Minister, started with a capital base of Rs.1,000 million

(USD 32 million at the prevailing exchange rate), of which Rs.600 million was raised through

private placement from Indian Residents while the balance Rs.400 million (USD 13 million) was

contributed by Non-Resident Indians.

About Indusind Bank

Indusind Bank is one of the new generation private-sector banks in India, which commenced its

operations in 1994. The Bank caters to the needs of both Consumer & Corporate Clients and has a

robust technology platform supporting multi – channel delivery capabilities. The Bank enjoys a

patronage of 2 million customers and has a network of 209 branches and 427 ATMs spread over 168

geographical locations in 28 states and union territories across the country. The Bank also has a

Representative Office in Dubai and London.

The Bank’s total business (deposits plus advances) as on December 31, 2009 crossed Rs. 43,000

crore. The Bank is driven by state-of-the-art technology since its inception. It has multi-lateral tie-

ups with other banks providing access to more than 21000 ATMs for its customers. It enjoys

clearing bank status for both major stock exchanges - BSE and NSE - and three major commodity

exchanges in the country – MCX, NCDEX, and NMCE. It also offers DP facilities for stock and

commodity segments. The Bank has been bestowed with the mandate of being a Settlement Banker

for tea auctions at Kolkata, Siliguri, Coonoor, Coimbatore and Guwahati.

During the quarter, in a pioneering initiative in ‘Green Banking’ the Bank became the first bank in

Maharashtra to open a solar-power ATM. Subjects like sustainable development, social

responsibility and climate change are fast becoming part of the corporate vocabulary and Indusind is

at the forefront of this change in the Indian banking sector.

The Bank has been awarded the highest P1+ rating for its Fixed Deposits and Certificates of Deposit

by CRISIL. Recently, CRISIL has reaffirmed its P1+ rating of Indusind Bank’s fixed deposits and

certificates of deposit program. The rating continues to reflect the Bank’s established presence in the

Commercial Vehicle (CV) financing business and the significant improvement in its asset quality.

The rating also features in the Bank’s modest resource and earnings profile, and average

capitalization levels.

HIERARCHY OF AUTHORITY

AT NATIONAL LEVEL

AT ZONAL LEVEL
ORGANIZATIONAL STRUCTURE OF INDUSIND BANK

Indusind Bank follows a mix of both centralization and decentralization. It manages a balance

between the two and it depend on branch to branch for deciding the degree of centralization and

decentralization . Although, it has flexibility is its system of operation and no such standard

operating procedures are laid out in particular, employee are expected to react and perform as per the

situation and use their decision abilities to sort out customer problems.

The advantage of centralization is that it lets the top official coordinate organizational activities and

keep the organization focused on its goal whereas decentralization promotes flexibility and

responsiveness by allowing lower managers to make on the spot decisions.

Indusind Bank has a multidivisional structure varies from country to country depending on the type

of operations. The integration mechanism that the bank is using in india is that of a liaison Role

wherein a specific manager is given responsibilities for coordinating with managers from other

subunits.

ORGANIZATIONAL CULTURE

Indusind Bank has a very rich organizational culture which is appreciated worldwide as it is ranked

8th among the survey of best places to work in, it is also listed as one of the companies wherein the

attrition rate is quite low.

Regarding the jaipur Branch, the employees share is very cordial relation among themselves which

not only enhances the output of individuals but also has bought laurels to the branch winning the

award for best branch recently.

With completion of 5 year of the branch, the walk- in customers were also offered sweets as part of

the bank’s culture.

1.2) INDUSTRY INTRODUCTION

Although the antiquated Indian banking system has its roots in the nineteenth century , the character

and structure of the system has, however, changed substantially since 1969, when the major bank

were nationalized. Prior to nationalization, banking was concentrated only in urban areas. It was

clear that a better banking system was needed to promote the economic goals of the new Indian

state. Rural markets for Industrial goods could not be developed so long as money lenders charge

high rates of interest, which was the main source of rural credit. Moreover, the ‘green revolution’

depended on farmers finding substantial sources of credit to pay for fertilizers and hybrid seeds.

Since the mid-1970s, there has been a spectacular growth in the number of bank branches and in the

size of their deposits and advances. According to experts in banking this transformation has no

parallel anywhere in the world. After nationalization, there was also a change in recruitment policy.

For the first time, the doors of the banks was opened to everyone, irrespective of family status, caste,

community, religion or gender. Recruitment was done on a more systematic basis, with merit

assessed by conducting aptitude tests by an external agency in a relatively impartial manner.

As the size of the banking sector increased, the industry became difficult to manage and Computer

technology offered a possible solution. In India in the early 1960s, a small number of industrial

houses and a few educational, research and development institutions started using computers. During

the late 1960s and 1970s, service-oriented industries such as airlines, railways and insurance

companies introduced computers in order ‘to improve their functioning’ and ‘to provide better
customer service’. However, banks in India did not introduce computers on a large scale because of

the fear that these would result in retrenchment and unemployment.

For a long time Indian banks faced very little competition and operated in a protected economy and

so no long-term policy or perspective was formulated for the banking sector. Banking sector was

simply treated as a part of the public sector. But now, well-computerized foreign banks are

beginning to compete seriously with the nationalized banks. They target at the profitable and

wealthy part of the market and, in contrast to the nationalized banks, do not recognize any social

responsibilities to small account holders or to a rural and semi-urban client.

The banking and financial services Industry in India is in a state of inevitable and rapid growth. The

market for banking products and services has become more competitive than ever before. With the

steady fall in interest rates over the two years, customers started looking for alternate for savings and

investments such as pension funds, mutual funds, life insurance products etc. Furthermore, interest

margins and hence revenue opportunities have become very thin which are driving banks and

financial services companies to look for lending opportunities where intrinsically the delinquency

rates on loans are low and where the risk can be spread across a large base of customers.

Simultaneously, a rapidly growing middle class having an enormous appetite to borrow from Banks

for a better and improved lifestyle, has given banks and financial services companies an opportunity

to finance the demand side of the Economy.

The multinational banks and some of the new private sector banks in the country have entered the

Indian market and seized the opportunity very well. The public sector banks and the old private

sector banks, who command over 80% market share in the banking industry, must seize the

opportunity in a big way and respond aggressively to market demands if the growth in Retial
Banking has to be accelerated in the country itself. To be successful in Retail Banking, banks will

need to revamp their business model to :-

a. Build large volume, highly scalable operation,

b. Package and deliver products rapidly in a dynamic market,

c. Leverage effectively on multiple delivery channels (branch, internet, ATMs etc.) with a

view to contain the cost of operations.

d. Build collaborative relationships with providers of related financial products and services

and move towards converting the network of bank branches into ‘financial

supermarkets’.

1.3) INTRODUCTION TO BASIC BANKING

WHAT IS BANKING?

• Banking, in traditional sense is the business of accepting deposit of money from public for

the purposes of leading and investment. These deposits can have a distinct feature of being

withdraw able by Cheques, which no other financial institution can offer.

In addition, banks also offer various other financial services, which include

• Issuing Demand Draft and Traveler Checks

• Credit Cards

• Collection of Cheques, Bills of Exchange

• Custodial Services

• The business of banking is highly regulated since banks deal with money offered to them by

the public and ensuring the safety of the public money is one of the prime responsibilities of

any bank. That the way the bank are expected to be expected to be prudent in their lending

and investments activities. Every Bank has a compliance Department, which we responsible
 to ensure that all the services offered by the bank, and the processes followed are in

compliance with the local regulation and the Bank’s corporate policy.

The major regulations and acts that govern the banking business are

• Banking Regulations Act 1949

• Foreign Exchange Management Act 1999

• Indian Contract Act

• Negotiable Instrument Act 1881

Banks lend money either for productive purpose to individuals, firm’s corporate etc. for buying

houses proposes to individuals and others. However banks do not finance any speculative activity.

Leading is a risk taking. Having prudent norms for lending should cover the risk . The depositors of

bank are also assured of safety of their money by deploying some percentage of deposits in statutory

reserves like SLR & CRR.

SLR & CRR

The regulations like Banking Regulation Act and Reserve Bank of India Act govern the business of

banking. It is obligatory on the part of a Bank to invest a fixed proportion known as Statutory

Liquidity Ratio (SLR) – of their liabilities which include time and term Deposit in certain approved

government Securities. Current SLR rate is 25%.

A certain proportion- know as Cash Reserve Ratio (CRR)- of the net time and demand liabilities of

the bank is also to be placed Reserve Bank of India as cash reserve. This can vary between 3 to 20

percent announced by RBI. Current CRR rate is 6%.

Both, SLR & CRR are subject to change by RBI and normally the changes, if any are made between

RBI announce its busy season (October-March) and slack season (April-September) credit policy.

The objective of CRR & SLR requirement is to minimize the risk of exposure and to make certain
portion of fund available in liquid form at a point of time. Reserve Bank also uses this as a monetary

tool to monitor and control money supply to the economy.

The Treasury Division of a bank, being the custodian of all fund of the bank, manages and maintains

CRR and SLR on regular basis. Dealers in the treasury sell and purchase securities eligible under

SLR portfolio to maximize the yield on these statutory investment.

TYPES OF DEPOSITS

Bank basically offer two types of deposits:

• Demand Deposits

• Term Deposits

1. DEMAND DEPOSITS

Demand Deposit by its nature, are payable as and when the depositor makes the demand to

pay. There are two types of account, which are demand deposits in nature, these are:

• Saving Account

• Current Account

Any amount can be deposited at these accounts at any time. The amount deposited or apart of it can

be withdrawn any time by using cheques.

However bank normally stipulates a minimum balance to be maintained in these accounts.

Saving Account is offered only to individuals and non-trading entries. Banks also pay interest on

saving Accounts. The interest is paid on the minimum balance held in the RBI determines the rate of

interest on saving s Account.

Current Account can be opened in the name of individual any firm or a company. No interest is paid

on the balance held in this account.

1. TERM DEPOSITS

Term deposits are the deposits where a fixed sum of money is kept for a specific period and the

money is repaid only on expiry of the period. The interest offered on these deposits depends on the

period of the deposit bank accepts term deposits for a [period of 15 days to 10 years. However, our

bank accepts deposits for a maximum period of 5 years. Banks are free to determine the interest rates

on such deposits. The interest is normally paid out of every quarter. But at the request of the

customer, the interest can be paid out of every month but at the discounted rate of interest. Three

most common form of term deposits are:-

➢ Fixed deposits

➢ Reinvestment deposits

➢ Recurring deposits

Fixed deposits are those where the customers deposit fixed amount for a certain period and interest

on it is paid by the bank every quarter. On expiry of certain terms, the principal amount is paid back

to the customer or the deposit is renewed at the request of the customer.

Reinvestment deposit is similar to a fixed deposit with the difference that the interest payable every

quarter is compounded with the principal amount. In effect the interest on reinvestment deposit is

paid along with the principal on maturity only.

Recurring deposit is the deposit where certain amount say Rs. 1000 is deposited every monthly

installment for a certain period ranging from 6 months to 5 years. The total amount deposited over

the period accrued interest on maturity.

Payment of deposit before maturity

In case a term deposit is to be paid before its due date, a penal interest is charged. As per RBI

guidelines, banks are now free to determine to the penal rate. However, a penal rate is advised to the

customer at the time of opening an account.

As per the Income Tax Act, if the total amount of all deposits of customer, including the interest on

it, with a bank branch exceeds Rs. 20,000/- no deposit or any interest should be paid in cash, it can

be credited in the account of the depositor.

TDS on interest earned on term deposits (other than recurring deposit) are subject to tax deduction

at source if the total interest earned during the Financial Year (April- March) by the customer on

his /her deposits at branch exceeds Rs. 5000.

CURRENT SITUATION OF INDIAN BANKING

Currently, banking in India is generally fairly mature in terms of supply, product range and reach-

even though reach in rural India still remains a challenge for the private sector and foreign banks. In

terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong

and transparent balance sheets relative to other banks in comparable economies in its region. The

Reserve Bank of India is an autonomous body, with minimal pressure from the government. The

stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange

rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite some time-especially in its

services sector-the demand for banking services, especially retail banking, mortgages and investment

services are expected to be strong. One may also expect M&As, takeovers, and asset sales.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak

Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to

hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake

exceeding 5% in the private sector banks would need to be vetted by them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public sector banks (that is with

the Government of India holding a stake), 29 private banks (these do not have government stake;

they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a

combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA

Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking

industry, with the private and foreign banks holding 18.2% and 6.5% respectively.

INDIAN FINANCIAL SECTOR

1. Banking sector entering newer areas like wealth management, private banking, doorstep

banking, business banking, excel banking, electronic banking, credit cards, investment

advisory services, merchant establishment, phone banking, net banking etc.

2. Indian banks in a war game to acquire and retain customers.

3. Indian middle class being reached out and wooed by banks.

4. Indian middle class and financial sector beginning to dream together and wave a new bond of

relationships.

5. Financial products like mutual funds, life policies, non life policies competing with

traditional banking products.

6. Banking sector fully geared for helping Indian middle class realize its dreams.
 7. Banking sector in good health with low nonperforming assets and prudential accounting

standards in place.

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

acquire global size.

INDIAN RETAIL BANKING SECTOR

What Is Retail Banking?

Retail banking refers to banking in which banks undergo transactions directly with consumers, rather

than corporations or other banks. Services offered include savings and checking accounts,

mortgages, personal loans, debit cards, credit cards and so forth.

Today Retail Banking Sector Is Characterized By Three Features:

Multiple Products Multiple Channel Of Multiple Customers

Distribution Groups

Deposits Call center Consumer

Credit cards Branch Small business

Insurance Internet corporate

Investments Kiosk

securities
Changing Environment

The most important factor shaping today’s world is globalization. Companies are instantly in search

of low-cost markets. Technology is driving growth in production and productivity and competition is

stiff.

Secondly, rapid development in communication technology has lead to greater integration of global

financial markets, in turn boosting private capital flows and foreign direct investment.

A third factor is the increasing share of emerging markets economies in world trade. Fallout of

globalization is the increase in the volatility of markets. This calls for the adoption standards and

global benchmarks.

India has adopted international prudential norms and practices with regard to capital adequacy,

income recantation, provisioning requirements and supervision and these norms have been

progressively tightened over the years. There has been a steady decline in the level of resources pre-

emption from the banking system in the form of CRR (cash reserve ratio) and SLR (statutory liquid

ratio). Interest rates in various segments of financial markets have been deregulated in a phased

manner.

Opportunities Of Retail Banking

Retail banking has immense opportunity in a growing economy like India. As the growth story gets

unfolded in India, retail banking is going to emerge a major drive. How does the world view us?

A.T. Kearney, a global management consulting firm, recently identified India as the “second

most attractive retail destination” of 30 emergent markets.

The risk of the Indian middle class is an important contributory factor in this regard. The percentage

of middle to high income Indian households is expected to continue rising. The younger population

not only wields increasing purchasing power, but as far as acquiring personal debt is concerned, they

are perhaps more comfortable than previous generations. Improving consumer purchasing power,

coupled with more liberal attitude towards personal debt, is contributing to Indian banking retail

segment.

Challenges

First, retention of customer is going to be a major challenge. According to a research by Reich

Held and Sasser in the Harvard Business Review, 5% increase in customer retention can increase

profitability by 35% in banking business, 50% in insurance and brokerage and 125% in the customer

in credit card market. Thus, banks need to emphasize retaining and increasing market share.

Second, rising indebtedness could turn out to be a cause for concern in the future. India’s position,

of course, is not comparable to that of the developed world where household debt as a proportion of

disposable income is much higher. Such a scenario creates high uncertainty. Expressing concern

about the high growth witnessed in the consumer credit segment the Reserve Bank has, as temporary

measure, put in place risk containment measure and increased the risk weight from 100% to 125% in

the case of consumer credit personal loans and credit cards (Midterm review of Annual Policy,

2004-2005).
Third, information technology possesses both opportunities and challenges. Even with ATM

machines and internet banking, many consumers still prefer the personal touch of their neighborhood

branch bank. Technology has made it possible to deliver services through the bank network,

providing instant update to creating accounts and rapid movement of money for stock transfer.

However, this dependency on the network has brought IT department’s additional responsibilities

and challenges in managing, maintaining and optimizing the performance of retail banking network.

Illustratively, ensuring that bank products and service are available, at all times, and across the entire

organization is essential for today’s retail banks to generate revenues and remain competitive.

Beside, there are network management challenges, whereby keeping these complex, distributed

become essential. Specific challenges include ensuring that account transaction application run

effectively between the branch office and data centers.

Fourth, KYC issues and money laundering risks in retail banking is yet another important issue.

Retail lending is often regarded as a low risk area for money laundering because of the perception of

the sums involved. However, completion for client may also lead to KYC procedures being waived

in the bid for new business. Banks must also consider seriously the type of identification documents

they will accept & other process to be completed.

Future Of Retail Banking

1. Share of retail credit expected to grow from 22% to 36%.

2. Dramatic changes expected in the credit portfolio of banks in the next five years.

3. Housing will continue to be the biggest growth segment followed by auto loans.

4. Banks rieed to expand and diversify by focusing on the non urban segment as well as varied

income and demographic groups.

5. Rural areas offer tremendous potential to which needs to be exploited.

MAJOR PLAYER IN RETAIL BANKING

Central Bank Reserve Bank of India (Regulatory Bank)

Nationalized Banks State Bank of India, Allahabad Bank, Andhra

Bank, Bank of Baroda, Bank of India, Bank

of Maharashtra, Canara Bank, Central Bank

of India, Corporation Bank, Oriental Bank of

Commerce, Punjab & Sind Bank, Punjab

National Bank, Syndicate Bank, Union Bank

of India, United Bank of India, UCO Bank,

IDBI Bank.
Private Banks Axis Bank, Bank of Rajasthan, Federal Bank,

ICICI Bank, Jammu & Kashmir Bank, Kotak

Mahindra Bank, SBI Commercial and

International Bank, South Indian Bank, YES

Bank.
Foreign Banks Citibank, HSBC, Standard Chartered,

Deutsche Bank, ABN AMRO Bank,

American Express Bank Ltd, DBS Bank Ltd.

Regional Banks South Malabar Gramin Bank
 CHAPTER 2

RESEARCH METHODOLOGY

2.1) RESEARCH

Research is the process of finding out the interpretation and analysis of survey data made during the

course of summer training study. It is impact of how different respondents and for which overall

representation of consumer population and its impact is obtained. What is generally demanding is the

basis of survey, the methods of research conduct and the necessary conclusive inferences. The

following can be summarized as vital of research:-

2.2) OBJECTIVE

The objective for the basis of research was:-

• To analyze the various financial products and services offered by various banks.

• On the basis of products and services offered, compare the performance of these banks with

Indusind bank.

• According to performance, devise strategies to increase the business for Indusind bank and

discover the potential market segment which may help Indusind bank to stay ahead in the

competition.

2.3) PROCESS OF RESEARCH METHODOLOGY

1. Collection of data: - The data for research and necessary evidences can be obtained in the following

two ways:-
 a) Primary data: - Where the data is fresh and collected by the surveyor himself by interviewing

posing direct personal questionnaire to the respondents.

b) Secondary data: - where the data information can be collected through other sources which are

either published sources such as magazines, books and journals and via references such as websites.

2. Interpretation of data:- After the collection of data, data is interpreted and analyzed to form

necessary findings during survey and are represented graphically through charts and pies, which

serves a significant portion of the summer training project.

3. Conclusion:- When the data is interpreted and analyzed we researched at the conclusion of the

survey conducted, which is used to summarize the whole story of summer training and marketing

survey and its analysis.

4. Questionnaire:- For the purpose of conducting fruitful survey, necessary set of questions are being

drafted by the surveyor which is called questionnaire and put forth against respondent individual to

get their views about the particular questionnaire aspect. Questionnaire can be either open ended or

close ended.

a) Open ended: - Where the respondents were asked to freely and comfortably give their views on

the necessary questions put before them.

b) Close ended: - Where the respondents are set limited to the choices framed by surveyor and made

to select any one out of them. He cannot give open review in respect to them.

5. Sampling: - During the course of summer training random sampling is used where individuals

have been collected randomly from various parts of the city and are represented as respondents.

These respondents act as a major source of fulfilling and conductive in achieving the objective of the

project.

2.4) TOOLS AND TECHNIQUES USED FOR DATA COLLECTION

A structured questionnaire shall serve as the research instrument for data collection. Discussions with

the different officials in Indusind bank shall provide useful inputs in the form of to achieve the

objective of study.

Type of research: -

 Exploratory research

Sources of data: -

 Primary data: Primary data are collected with the help of questionnaire, interviews and

observations.

 Secondary data: Secondary data are collected from internet, journal and books.

Sampling method: -

 Sampling method: Judgment sampling.

 Sampling unit: Transporters, professionals, jewelers and customers of different banks.

Sample size: -

 Sample size collected for the study in 164 respondents, which were interviewed throughout the

Jaipur city.

Research location: -

 Jaipur city

Utility of the study: -

 This study gave us an insight that at what level Indusind bank has its reach to the general

public. This study will help to know the current business potential for the bank. There is tough

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

services they want.

2.5) LIMITATIONS OF RESEARCH

• Sample size was very small, and area of research was restricted to Jaipur only. so it cannot give

a fair result.

• Data collected cannot be reliable and accurate.

• Gathering and processing data can be very expensive.

• The collection of data can take a longer time.

• Some ethical and legal constraints related to security of data.

 CHAPTER 3

FINANCIAL PRODUCTS AND SERVICES OF INDUSIND BANK

3.1) SAVING ACCOUNT

Savings bank accounts are meant to promote the habit of saving the citizens while allowing them to

use their funds when required. This is a type of account primarily opened for and operated by

individuals, wherein the number of transaction is few and which gives the customer liquidity with

the facility to earn some interest on the residual balance.

Purpose and description

Saving account is a transaction account wherein a deposit is placed with bank for an un specified

period of time. The depositor can withdraw the money when ever is required through any of the

following means:

1. Withdrawal slip

2. Cheques

3. Transfer through an ATM or debit card

4. Standing instructions

5. Remittances

Interest paid
Interest is determined in accordance with directives of the reserve bank of india . Interest is

calculated on the minimum credit balance between the close of the business on the 10th and the last

day of each calendar month. Interest is paid on quarterly rests.

Eligibility

• Individuals

• Trust\ societies\charitable organizations

• HUF’s (for individuals for the sole purpose of savings & not for the purpose of business)

• Resident Indians

• Foreign Nationals.

Product Features

• Account can be in sole name or joint names

• Non- maintenance of a ledger fees depending upon the type of account.

• Transaction oriented account: Mode of transaction through cheque books,ATM Card or

Debit card.

• Accounts can be operated at any of the Indusind Bank branches across the country, 365 days

a year from 10 A.M – 7 P.M. Account can be accessed through the internet.

• Phone banking and Doorstep banking services.

Facilities Available

Statement of account at any desired frequency:

Quaterly

Monthly

Weekly

Daily
 • Option of not availing the facility.

• Demand draft / Pay orders at nominal charges.

• Local and outstation clearing

• Standing instructions

• To make regular recurring payments

• Instant transfer of fund between an account in one branch and a self styled account in

another.

• Power of attorney to operate the account can be given to the third party.

• Stop Payment of cheques.

• Personalized Cheque book and multicity cheque books.

• The option of a picture or photo debit card along with an add-on card.

• Issuance of traveler’s cheques

• Special services like Banker’s Report , Signature Verification, Certificate of balance or

balance or interest foreign Inward Remittance Certificate available.

Minor Saving Account

• Account is opened in the name of minor.

• Guardian has to be a co-holder.

• Account can be clubbed with all other accounts of the guardian for taxation purposes.

• Converted to a normal saving account once the minor attains majority (18 years)

SAVINGS ACCOUNT OF INDUSIND BANK:

1. Classic savings account

2. Privilege savings account

3. Privilege Plus Savings account

SCHEDULE OF CHARGES OF SAVINGS ACCOUNT

PARTICULARS Classic Privilege Privilege Plus

Savings Savings Savings

account Account account

Minimum balance requirement Rs 5000 Rs 10,000 Rs 50,000

(AMB) (AQB) (AQB)

Quarterly fee NIL NIL NIL

Account maintenance charges:

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

Account statements Free Free Free

Passbook Free Free Free
Cheque book:

Local cheque book (Rs.50 on account Free Free Free

where AQB has not been maintained

in last quarter)
Muiticity cheque book Free Free Rs. 9 per leaf
ATM usage:

INDUSIND BANK ATMs Free Free Free

 Other Visa ATMs(Free for first 5

transactions) Rs 20 Rs 20 Rs 20
Visa ATMs outside India Rs.140 Rs.140 Rs.140
Balance enquiry Free Free Free

ATM Cards:

First year fee NIL NIL NIL

Annual fee (Per card) NIL NIL NIL
Shop Smart Debit Cards:

First year fee Rs. 200 Free Rs. 200

Annual fee Rs. 200 Free Rs. 200
Gold Debit Cards:

Annual fee Rs. 799 Rs. 799 Rs. 799

Lost card issuance:

ATM Rs.100 Rs.100 Rs.100

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

Charges if AQB is less than

Rs.10.000:
Cash withdrawal/deposit Rs.50 Rs.50 Free
Pay order/DD Rs.50 Rs.50

Other Charges:

Phone Banking (Annual fee) Free Free Free

Internet Banking (Annual fee) Free Free Free
Cash Deposit charges
Duplicate Statement:

Statement up to 3 month old Rs.100 Rs.100 Rs.100

Statement more than 3 month Rs.150 Rs.150 Rs.150

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

Cheque return:
Check issued by customer Rs.300 Rs.300 Rs.300

Check deposited by the customer Rs.100 Free Rs.100

ECS Service:

If issued by the customer and returned Rs.250 Rs.250 Rs.250

unpaid
Dormant accounts Rs.1000 Rs.1000 Rs.1000
Account closure:
Within six month from the date of Rs.200 Rs.200 Rs.200

opening
Remittance from abroad: Rs.250 Rs.250 Rs.250

Signature verification Rs.25 Free Rs.25

3.2) CURRENT ACCOUNT OF INDUSIND BANK

Current account is primarily meant for businessmen, firms , companies , public enterprises etc that

have numerous daily transaction. Current account is opened for & operate by individuals or firms,

wherein the number of transactions is more than a saving account and which gives the customer

liquidity. No interest is paid on the balances held in this account. In a current account , a customer
can deposit any amount of money any number of times. A customer can withdraw any amount aas

many times as he wants as long as he funds to his credit.

Purpose and Description

Current account is a transaction account wherein a deposit is placed with the bank to perform day to

day transactions. The depositor can withdraw the money whenever required through any of the

following means :

1. Withdrawal slip

2. Cheques

3. Transfer through an ATM or debit card

4. Standing instructions

5. Remittances

Product Features

• Account can be in sole name or joint names.

• Non-maintenance of aledger fees depending upon the type of account .

• Transaction oriented account : Mode of transaction through cheque books, ATM card or

debit card.

• Account can be operated at any of the standard chartered branches across the country , 365

days a year from 10 am – 7 pm.

• Account can be accessed through the internet.

• Phone banking and Doorstep banking Services.

SCHEDULE OF CHARGES OF CURRENT ACCOUNT

PARTICULAR Indus Indus Indus Indus Indus

Blue silver Gold Plus Prestige

Minimum balance 10000 25000 50000 1,00,000 5,00,000

requirement (AMB) (AMB) (AMB) (AMB) (AMB)

General charges:
Account statements Free Free Free Free Free
Pass book Free Free Free Free Free
Cheque book:
Cheque book Free Free 2 book Free 1 book Free 1 book Free

Issuances(Payable at per month per month per month

par 50 leaves)
Cheque book charges NIL NIL NIL NIL NIL
ATM usage:
Indusind ATMs Free Free Free Free Free
Other Visa ATMs (Free Rs.20 Rs.20 Rs.20 Rs.20 Rs.20

for first transactions)

Visa ATMs outside Rs.125 Rs.125 Rs.125 Rs.125 Rs.125

India
Balance Enquiry Free Free Free
ATM cards:
First year fee NIL NIL NIL
Annual fee NIL NIL NIL
Shop smart debit

cards:
First year fee Rs.200 Rs.200 Rs.200
Annual fee Rs.200 Rs.200 Rs.200
Gold debit cards:
Annual fee Rs.799 Rs.799 Rs.799
Lost card issuance:
ATM Rs.100 Rs.100 Rs.100
Shop smart debit card Rs.200 Rs.200 Rs.200
Gold debit card Rs.799 Rs.799 Rs.799
Other Charges:
Phone Banking (Annual Free Free Free Free Free

fee)
Internet Banking Free Free Free Free Free

(Annual fee)
Account Closure:
Within six months from Rs.200 Rs.200 Rs.200 Rs.200 Rs.200
 the date of opening

3.3) CREDIT CARDS

The Gold card offered by Indusind Bank is not less than a credit card. It provides special deals at

various restaurants, travel benefits and many more privileges.

Unique features:-

Some of the exclusive benefits availed by a Gold Card member :

Privilege access to Airport Lounges : The Gold Card of Indusind Bank ensures the entry of its holder

into exclusive airport lounges in Delhi, Chennai and Kolkata including complimentary non-alcoholic

beverages and snacks.

Global Acceptance

The Gold Card is the most widely accepted credit card in over 19 million VISA and Mastercard

establishments worldwide and over 1.1 lac establishments in India and Nepal.

Balance Transfer Option

The Gold Card helps its holders to transfer the outstanding balance from any other credit card to the

Standard Chartered global credit card at a special rate lower than the 2.95% p.m. which is the current

rate.

Revolver Facility

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

every month
Cash Advance Facility

The cash advance facility provides 24-hour access to cash upto 30% of the credit limit at 850,000

ATMs worldwide and 6500 ATMs all over India.

Doorstep Facility

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

Picture Card

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

it to be.

Photo Card

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

Zero Lost Card Liability

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

Credit Free Period

The Gold Card provides credit free period of upto 52 days.

24 hour Help-lines. A customer can use to help-lines for any queries 24/7.
Cheque collection boxes

Payments can be made on Indusind Bank Credit Card conveniently by placing the cheques at cheque

collection boxes across centers.

Airline/Railway counters

The Indusind Bank Credit Card can be used to purchase railway/airline tickets online or at railway &

airline counters and gives access to exclusive airport lounges.

Instant Buys

A customer can pay in easy installments for high value purchases on the credit cards at attractive

rates of interest.

Rewards Plus Program

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

exchanged for attractive gifts.

Travel Cash Back

International air tickets which are purchased through Carlson Wagonlit/BTI Sita gives a special cash

back offer.

INDUSIND BANK FOR NRI

NRI products

Opening of accounts in the name of Non Residents is subject to Exchange Control Regulations.

However, authorized banks can freely open accounts in the name of Non Resident Indians.
“A non-resident Indian is an Indian citizen who is residing abroad for an indefinite period for the

purpose of employment, business or other purposes.”

Non-Resident Indians can open the following accounts in Indusind Bank:

Non Resident Ordinary Account (NRO)

This is like any other resident account, which is maintained in Indian Rupees.It can be opened as a

savings or a current account, but the credits allowed can only be in Indian Rupees (INR). Thus, the

customer has the convenience of having an account to credit all his income earned out of policies out

of-reparitable investments.

He can also use this account of outgoing payments like monthly installments. The Interest earned on

the funds in this account is repartiable.

Now Resident External Account (NRE)

This account is the best solution for NRI’s wanting to hold rupee deposits as it offers a dual

advantages :

• They can freely access their funds.

• This can freely access their funds in rubibf Rupees while in India.n Rupees while in INDIA.

• They can convert the same funds into foreign currency and repatriate it abroad any time they

wish, this means that the interest along with the principle is fully repatriable.

• Only foreign currency credits are allowed in this account which are converted in to INR

Forgien currency Nonresident account (FCNR )

This is opened in four designated currencies it is a better option for holding term deposit in foreign

currency in India. The vital feature of this deposit is that the savings are protected against

fluctuations in the interest rate. So, NRIs can safely invest in US Dollars, Pound, Japanese Yen and

Euro. The principle and the interest are completely repatriable.

FIXED DEPOSITS

These are the deposits which are made by the customers who are not ready to take risks in order to

get good returns. On FDs, a fixed rate of interest is given to the customers on the amount deposited

by them. There is no loss or gain according to the market trends because the rate of interest is fixed

and decided at the time of opening of FD.

Indusind Bank has a wide variety of options to suit different needs, including Short Term Deposit,

Reinvestment Deposit, and simple Fixed Deposit which can be opened by:

• Individuals

• Proprietors

• Partnership and limited companies

• Societies

• Clubs and associations

• HUFs.

Features of the FD of Indusind Bank are:

• Tenor ranges from 15 days to 5 years (For deposits of Rs. 15 Lakhs and above, minimum

tenure is 7 days)

• Options of simple interest and compound interest

• Overdraft facility available against deposit

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

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

TENURE INTEREST RATE % P.A. INTEREST RATE % P.A.

(Below Rs.15 Lacs) (Rs. 15 Lacs to 100 Lacs)

 7-14 days 2.75% 2.75%
15-29 days 3.00% 3.00%
30-45 days 3.50% 3.50%
46-59 days 4.00% 4.00%
60-89 days 4.50% 4.50%
90-179 days 5.50% 5.50%
180-269 days 6.25% 6.25%
270 days to 1 year 6.50% 6.50%
Above 1 year to below 2 years 7.25% 7.25%
2 years to below 3 years 7.50% 7.50%
3 years to below 5 years 7.75% 7.75%
5 years and above 7.75% 7.75%

3.4) FINANCIAL SERVICES OF INDUSIND BANK

Net banking:

Net banking is the way to carry out the banking transactions through internet. The need for a branch

is completely eliminated by technology. This helps in serving the customers better in a better manner

and tailoring products better suited to the customers.

The customers can view their account details, transaction history, order drafts, electronically make

payments, transfer funds, account position and can electronically communicate with the bank

through for which he had to visit the bank branch.

Net banking is absolutely free, easy, and secure, allowing accessing most bank services and a host

of features. Online banking provides a range of services at the finger-tips.

✔ Account information

✔ Funds and payments

✔ Inter bank fund transfer

 ✔ Investment services

✔ Credit card services

✔ Online applications

✔ Personal update

✔ Personal mailbox.

The six primary drivers of internet banking are:

 Improve customer access

 Facilitate the offering of more services

 Attract new customers

 Provide services offered by competitors

 Reduce customer’s attrition.

Phone banking:

Phone banking helps to carry out the banking transactions through telephone. Customers can call up

the banks help line or phone banking number to conduct transactions like transfer of funds, making

payments, checking of account balance, ordering cheques, etc.

This also prevents the customer to visit the bank’s branch and saves their valuable time and money.

It is a service that enables to access financial information and services 24 hours a day, 7 days

a week. Phone banking avails.

✔ Check account balance.

✔ Get details about specific instructions.

✔ Inquire about the status of a particular cheque.

✔ Order demand drafts.

✔ Stop a cheque or a series of cheques.

✔ Transfer funds among linked accounts.

 ✔ Ask for a statement of a account or a cheque book.

✔ Change deposit tenure.

✔ Get information on deposit rates, lending rates, exchange rates and banking charges.

✔ Make complaints and suggestions.

✔ Access any information in SCB’s products and services.

Mobile banking:

Indusind bank provides the information to the customers about certain transactions related to their

accounts through mobile phone with the help of latest technologies like WAP , SMS ,etc.

Information regarding any transaction done in the account is being sent to the customer through

SMS banking so that the customer can be aware of all the transaction in order to prevent money

laundering.

This service helps the bank to combine internet and telephone leverage it to cut costs and at the same

time provide its customers, comfort and convenience.

It can also be seen that tech-savvy banks are tapping the entire above alternative channels to cut

costs and to increase customer satisfaction.

Doorstep banking:

This facility is available on accounts in which the average quarterly balance (AQB) is Rs. 1 Lakh.

Doorstep banking is the facility in which the customers are not required to come to the bank and

deposit or withdraw the money or cheques. The executives, from the bank collect the money or

cheque from the place of customers for the purpose of depositing it in the bank.

This facility helps the customers to save their valuable time.

 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

SECONDARY DATA ANALYSIS

4.1) COMPARATIVE ANALYSIS OF BANKING SERVICES OF INDUSIND

BANK AND OTHER MULTINATIONAL BANKS

Table 4.1

S. BANK INDUSIND ABN-AMRO CITIBANK HSBC

NO. SERVICES BANK

1. Branches 68 (Metros) & 17 (Metros) & 25 (Metros) & 30 (Metros)

83 (India) 19 (India) 35 (India) &

39 (India)
2. ATMs 165 78 376 158
3. ATM/Debit Card Yes Yes Yes Yes
4. Charges for ATM card Rs. 200 p.a. Rs. 200 p.a. Rs. 100 p.a. Rs. 150 p.a.
5. ATM/Debit Card Yes Yes Yes Yes
 access to other banks
6. Charges per 4 Transaction 2 Transaction Rs. 50 per Rs. 50 per

transaction from free/month and free/month and transaction transaction

ATMs of other banks then Rs. 20 per then Rs. 40 per

transaction transaction
7. Locker facility Yes, Rs. 2000 Yes Yes Yes

p.a.
8. Cheque deposit boxes Yes Yes Yes Yes
9. Global Debit Card Yes Yes Yes Yes
10. Global Credit Card Yes Yes Yes Yes
11. Average banking 10 AM-7 PM 10 AM-7 PM 10 AM-2 PM 9 AM-4 PM

hours
12. Sunday banking No Yes Yes No
13. Minimum balance 10,000 10,000 10,000 10,000

saving
14. Charges for non- Rs. 750 per Rs. 200 to Rs. 250 per Rs. 300 per

maintenance of quarter Rs.1800 per month quarter

minimum balance month

15. Cash withdrawal per 25,000 25,000 - 50,000 25,000

day 1,00,000
16. Cash transaction from Yes Yes Yes Yes

non-branch
17. Statement charges Free Free Free Free
18. 24 hours branch Yes No No No
19. 365 days branch Yes Yes Yes No
20. Automated cheque Yes No No Yes

recorder
21. Multicity branch Yes Yes Yes Yes

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

& above charged

32. Cash pick up Yes(charged) Yes(charged) Yes(charged) Yes(charged)
33. Cheque pick up Yes Yes Yes Yes

Explanation:-

1. Most of the branches of multinational banks are concentrated in the metros. The branches of

Indusind bank are comparatively more than ABN- Amro, Citibank and HSBC bank. But ATMs

of Citibank are higher.

2. Almost every bank provides ATM cards to their customers to make banking more easier.

Customers do not have to visit the banks for deposits and withdrawals. ATM service can be

accessed through other banks as well. Few banks provide this facility free of cost while others

have the charges for it. All the banks mentioned above have their respective charges.

3. Locker facility is chargeable under Indusind bank at Rs. 2000 p.a. but in other banks this facility

is offered free of cost.

4. The average quarterly balance is Rs. 10,000 for all the four banks. If the customer is not

maintaining this minimum balance there are charges for non maintenance.

5. Bank statements are available free of cost.

6. Cash withdrawal per day for Indusind bank is the lowest at Rs. 25,000 while for ABN-Amro it is

the highest and ranges from Rs. 25,000 to Rs. 1,00,000.

7. Doorstep banking is a new facility which was first introduced by Indusind bank and is now used

by almost every bank. Banks have their respective pickup and drop charges.

8. Multibranch banking, phone banking, mobile banking, internet banking, national clearing and

speed clearing facilities are provided by all the four banks.

4.2) COMPARATIVE ANALYSIS OF BANKING SERVICES OF INDUSIND

BANK AND PRIVATE & PUBLIC SECTOR BANKS

Table 4.2

S. BANK INDUSIND ICICI HDFC AXIS IDBI

NO. SERVICES BANK

1. Branches 68 (Metros) & 158 (Metros) 194 (Metros) 96 (Metros) 43 (Metros)

83 (India) & & & &

508 (India) 446 (India) 247 (India) 120 (India)

2. ATMs 165 1910 1147 1599 329
3. ATM/Debit Card Yes Yes Yes Yes Yes
4. Charges for ATM Rs. 200 p.a. Rs. 99 p.a. Rs. 100 p.a. Rs. 150 p.a. Rs. 100 p.a.

card
5. ATM/Debit Card Yes Yes Yes Yes Yes

access to other

banks
6. Charges per 4 Transaction Rs. 50 per Rs. 50-100 Rs. 50 per Rs. 50 per

transaction from free/month and transaction per transaction transaction

ATMs of other then Rs. 20 per transaction

banks transaction
7. Locker facility Yes, Rs. 2000 Yes, Rs. 750 Yes Yes Yes

p.a. p.a.
8. Cheque deposit Yes Yes Yes Yes Yes

boxes
9. Global Debit Card Yes Yes Yes Yes Yes
10. Global Credit Card Yes Yes Yes Yes Yes
11. Average banking 10 AM-7 PM 9 AM-4 PM 10 AM-4 PM 10 AM-4 PM 10 AM-4 PM

hours
12. Sunday banking No No Yes No No
13. Minimum balance 10,000 5,000 5,000 5,000 5,000
 saving
14. Charges for non- Rs. 750 per Rs. 300 per Rs. 150-500 Rs. 200 per Rs. 100 per

maintenance of quarter quarter per month month quarter

minimum balance

15. Cash withdrawal 25,000 15,000 15,000 20,000 25,000

per day
16. Cash transaction Yes Yes Yes(up to Yes(up to Yes(up to

from non-branch 1,00,000) 1,50,000) 50,000)

17. Statement charges Free Free Free Free Free
18. 24 hours branch Yes No No No No
19. 365 days branch Yes No No No No
20. Automated Yes No No No No

cheque recorder
21. Multicity branch Yes Yes Yes Yes Yes

banking (selected

cities)
22. National clearing Yes Yes Yes Yes Yes
23. Speed clearing Yes Yes Yes Yes Yes
24. Net banking Yes Yes Yes Yes Yes
25. Mobile banking Yes Yes Yes Yes Yes
26. Phone banking Yes Yes Yes Yes Yes
27. DMAT Yes Yes Yes Yes No
28. Priority banking Yes Yes Yes Yes Yes
29. Flexibility of Yes Yes Yes Yes Yes

interest rate
30. Doorstep banking Yes Yes Yes Yes(for Yes(for

selected selected

customers) customers)
31. Cash delivery Yes Yes Yes Yes Yes

(charged) (charged) (charged) (charged) (charged)

32. Cash pick up Yes Yes Yes Yes Yes

(charged) (charged) (charged) (charged) (charged)

33. Cheque pick up Yes Free once a Yes Yes Yes
 month (charged) (charged) (charged)

Explanation:-

1. The branches of private sector banks are spread all over India and is not concentrated only in the

metro cities.

2. The number of ATMs of private sector banks are comparatively higher than that of multinational

banks. Banks have charges for the ATM cards and ATM services of other banks can be assessed

by paying an amount.

3. Locker facility is provided by all the banks. Its chargeable under ICICI bank but is provided free

of cost by the remaining banks.

4. Banking hours of all the four banks are almost the same. No 24 hours banking is provided by any

of the banks and only HDFC bank provides banking on Sundays.

5. Minimum balance for saving account for all the banks are Rs. 5,000 and there is a charge for

non- maintenance of this balance.

6. Cash transaction from other banks can be done by customers of all the four banks.

7. National clearing, speed clearing, mobile banking, phone banking, internet banking and multicity

branch banking is provided by all the banks. But the AXIS bank has multicity branch banking

facility only in selected cities.

8. Priority banking is available under all the banks.

9. Doorstep banking is provided by all the banks but AXIS and IDBI provide this facility only to

priority banking customers. All the banks have charges for cash pick up, cheque pick up and

cash delivery.
4.3) PRIMARY DATA ANALYSIS

DEMOGRAPHIC ATTRIBUTION

a) Age

Table 4.3

Age

Cumulative
Frequency Percent Valid Percent Percent
Valid Below 20 years 15 15 15 15
Between 20 and 40 years 26 26 26 41
Between 40 and 60 years 40 40 40 81
Above 60 years 19 19 19 100
Total 100 100 100
 Figure 4.1

From the above analysis, I can analyze that normally people in the age group 20-60 maintain their

relations with multinational or private sector banks. While, people in the age group of below 20

years & above 60 years are somewhat indifferent.

2. OCCUPATION

Table 4.4

Occupation

Frequency Percent Valid Percent Cumulative Percent

Valid Student 13 13 13 13
Service 47 47 47 60
Business 36 36 36 96
Other 4 4 4 100
Total 100 100 100

Figure 4.2

From the above figure, we can analyze that the major proportion of the customers of the

multinational banks and the private sector banks are from the service class and the business class. So

the potential market segment of the customers of the various banks comprises of the services and the

business class.
 3. ANNUAL INCOME

Table 4.5

Annual income

Frequency Percent Valid Percent Cumulative Percent

Valid Dependent 13 13 13 13
Below 2 Lakh 11 11 11 24
Between 2-5 Lakh 44 44 44 68
Above 5 Lakh 32 32 32 100
Total 100 100 100

Figure 4.3

From the above results, it can be analyzed that people whose income is above two lakhs normally go

for relations with multinational banks or some private sector banks. While people who are dependent

prefer public sector banks.

FACTORS AFFECTING THE BANKING HABITS OF PEOPLE

The banking habits were studied on the basis of six features included in the questionnaire. The

respondents were asked to rate each of these features on a scale of five factors namely lowest, low,

average, high and highest. The following results were obtained for each of these factors.

1. Location

Table 4.6

Location

Frequency Percent Valid Percent Cumulative Percent

Valid Average 11 11 11 11
 High 50 50 50 50
Highest 39 39 39 100
Total 100 100 100

Figure 4.4

From the above figure , it can be said that people normally rated the factor “ Location” as high. Thus

it can be concluded that location is one of the most important factor for people while choosing a

particular bank.

2. Ambience

Table 4.7

Ambience

Frequency Percent Valid Percent Cumulative Percent

Valid lowest 3 3 3 3
low 8 8 8 11
Average 51 51 51 62
High 34 34 34 96
Highest 4 4 4 100
Total 100 100 100

Figure 4.5

From the above figure, It is a pretty clear that people rate the factor ‘ambience’ as average or high.

The reason behind rating this factor as normally average is that people told that they hardly have the

time to go to the bank. Through, it does have an effect on people but is not of much importance to

them so they rated it as average.

3. Timings
 Table 4.8

Timings

Frequency Percent Valid Percent Cumulative Percent

Valid lowest 1 1 1 1
low 4 4 4 5
Average 58 58 58 63
High 36 36 36 99
Highest 1 1 1 100
Total 100 100 100

Figure 4.6

From the above figure, it is evident that the factor “timings” is rated as average by people. Many

people rated this factor as average because they think that all the banks have the same timings.

Therefore it is not of much importance to people while choosing particular bank.

5. Products offered

Table 4.9

Product offered

Frequency Percent Valid Percent Cumulative Percent

Valid low 17 17 17 17
Average 64 64 64 81
High 17 17 17 98
Highest 2 2 2 100
Total 100 100 100

Figure 4.7
From the above figure, it is evident that the factor “prodects offered” is rated as average by people.

Many people rated this factor as average because they think that all the banks offer the same kind of

products. Therefore it is not of much importance to people while choosing particular bank.

6. Information

Table 4.10

Information

Frequency Percent Valid Percent Cumulative Percent

Valid Average 15 15 15 15
High 74 74 74 89
Highest 11 11 11 100
Total 100 100 100

Figure 4.8

Most of the respondents rated this factor as high. The reason behind such rating was that most of the

respondents felt that they were not provided with the right information about the products. So they

wanted that they should be provided with the right information and should not be deceived.

7. Service

Table 4.11

Service

Frequency Percent Valid Percent Cumulative Percent

 Valid Average 1 1 1 1
High 40 40 40 41
Highest 59 59 59 100
Total 100 100 100

Figure 4.9

This factor was rated by the respondents as the highest. Almost every respondent rated “Service” as

highest they felt that once they use any product of a bank then the services which are provided along

with the product effect the relationship of the customers with that particular bank. On the basis of the

results obtained from the survey it can be clearly stated that “Service” is the most important criteria

for choosing a bank.

Are you satisfied with the services that your bank is providing?

1. Public Sector Banks

Table 4.12

Public sector banks

Response Respondent Percentage

Very Satisfied 12 20%
Somewhat Satisfied 21 36%
somewhat Dissatisfied 15 25%
Very Dissatisfied 10 19%
Total 58 100%

Figure 4.10
During survey it was found that 36% customers of the PSU’s were somewhat satisfied with their

services. And 19% were dissatisfied reason slow process of banks, long queue, attitude of employees

and personal attention.

2. Private Sector Banks

Table 4.13

Private sector banks

Response Respondent Percentage

Very Satisfied 19 36%
Somewhat Satisfied 15 28%
somewhat Dissatisfied 10 20%
Very Dissatisfied 8 16%
Total 52 100%

Figure 4.11

36% customers of the private banks are very satisfied with their services. Only 16% were classified

and the reasons were poor knowledge of the employees, higher charges, hidden charges and most of

them said that they never get intimation calls whenever balance reduces from the minimum level.

For increasing the satisfaction level private banks must reveal all the information to the customers.

Intimation through SMS or phone calls whenever minimum amount reduces from the prescribed

limit.

3. Cooperative Banks

Table 4.14

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

Figure 4.12

45% of the customers are very satisfied due to their fast services. Main reason of their attraction is

their timings. Some banks have evening timing too. 13% are somewhat dissatisfied because of their

poor network and services are not commensurate with private sector banks.

4. Foreign Banks

Table 4.15

Foreign banks

Response Respondent Percentage

Very Satisfied 8 54%
Somewhat Satisfied 3 23%
somewhat Dissatisfied 2 14%
Very Dissatisfied 1 9%
Total 14 100%

Figure 4.13
54% customers of the foreign banks are very satisfied with their services. Only 9% were dissatisfied

and the reasons were poor knowledge of employees, higher charges, hidden charges and most of

them said that they never get intimation calls whenever balance reduces the minimum level. For

increasing the satisfaction level foreign banks must reveal all the information to the customers.

RATING OF BANKS

1. Indusind bank

Table 4.16

Indusind Bank

Frequency Percent Valid Percent Cumulative Percent

Valid Low 3 3 3 3
Average 32 32 32 35
High 50 50 50 85
Highest 15 15 15 100
Total 100 100 100

Figure 4.14

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

about Indusind bank.

2. Yes bank

Table 4.17

Yes Bank

Frequency Percent Valid Percent Cumulative Percent

 Valid Average 38 38 38 38
High 60 60 60 98
Highest 2 2 2 100
Total 100 100 100

Figure 4.15

From the above data it can be stated that Yes bank also has a good reputation among multinational

banks as it has been rated by most of the respondents as an above average rank.

3. Axis Bank

Table 4.18

Axis Bank

Frequency Percent Valid Percent Cumulative Percent

Valid Average 30 30 33 30
High 66 66 66 96
Highest 4 4 4 100
Total 100 100 100

Figure 4.16
Axis bank has also been related as an above average bank by the respondents. People feel that axis

bank is providing good facilities along with the products it offers.

4. HSBC

Table 4.19

HSBC

Frequency Percent Valid Percent Cumulative Percent

Valid Average 6 6 6 6
High 71 71 71 77
Highest 23 23 23 100
Total 100 100 100

Figure 4.17

From the above data, it is evident that HSBC is the best rated bank among all multinational banks in

India. The respondents who had their relationship with HSBC were very much satisfied with the

services of HSBC.

5. ICICI Bank

Table 4.20

ICICI

Frequency Percent Valid Percent Cumulative Percent

Valid Low 2 2 2 2
 Average 72 72 72 74
High 25 25 25 99
Highest 1 1 1 100
Total 100 100 100

Figure 4.18

ICICI bank was rated as an above average bank when compared with the multinational banks and

the new private players in this industry. Some respondents had a good experience with ICICI and

were satisfied with the facilities and services provided by them while some were not satisfied with

ICICI. So there was a mixed opinion about ICICI.

6. HDFC

Table 4.21

HDFC

Frequency Percent Valid Percent Cumulative Percent

Valid Low 6 6 6 6
Average 67 67 67 73
High 27 27 27 100
Total 100 100 100

Figure 4.19
From the above data obtained it can be analyzed that HDFC was rated as an average bank by most of

the respondents. The reason behind such ratings was that people were not satisfied with the services

provided by HDFC. Some had faced the problem because of non availability of third party

transactions while some were tired of a long queue outside its ATM machines.

7. IDBI

Table 4.22

IDBI

Frequency Percent Valid Percent Cumulative Percent

Valid Lowest 1 1 1 1
Low 19 19 19 20
Average 76 76 76 96
High 4 4 4 100
Total 100 100 100

Figure 4.20

IDBI was also rated as an average bank by most of the respondents. Although a very few had

maintained with IDBI but even these few were not satisfied with the services and other facilities

provided by IDBI.

FOR INDUSIND BANK ONLY:-

1. Products offered:-

Saving Account

Table 4.23
 Saving Account

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 45 45 45 45
No 55 55 55 100
Total 100 100 100

Figure 4.21

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

saving account with Indusind bank.

Current Account

Table 4.24

Current Account

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 7 7 7 7
No 93 93 93 100
Total 100 100 100

Figure 4.22
From the above data it can be easily interpreted that a very few of those people who were

maintaining relationship with Indusind bank had their current account in Indusind bank. So it can be

said that people were not much interested in having their current account with Indusind bank.

Term Deposits

Table 4.25

Term Deposits

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 1 1 1 1
No 99 99 99 100
Total 100 100 100

Figure 4.23

From the above figure it is pretty clear that “Term Deposit” of Indusind bank is not a very popular

product. Therefore Indusind bank will have to make this product more attractive to attract more

customers.

Credit Cards

Table 4.26

Credit Cards

Frequency Percent Valid Percent Cumulative Percent

 Valid Yes 21 21 21 21
No 79 79 79 100
Total 100 100 100

Figure 4.24

While including my market survey I found that people were not satisfied with this product of

Indusind bank. Instead they wanted to discontinue with this product as they felt that they were

deceived. This was because they were not provided with the right information about how to use the

product.

Satisfaction

Table 4.27

Satisfaction

Frequency Percent Valid Percent Cumulative Percent

Valid Yes 33 33 33 33
No 16 16 16 49
Not applicable 51 51 51 100
Total 100 100 100

Figure 4.25
From the above data it can be interpreted that people who had their relations with Indusind bank

were pretty much satisfied with Indusind bank. A majority of the people who were not satisfied with

Indusind bank were those people who were not using the credit card of Indusind bank.

Annual Income/ Indusind bank

Table 4.28

Annual income * Indusind Bank Cross Tabulation

Count

Indusind Bank

Low Average High Highest Total

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

Figure 4.26

The above table which shows the rating of people in different income group shows that people

whose income is above 2 Lakh rated Indusind bank as “high” which means that they were pretty

much satisfied with Indusind bank.

Occupation / Service

Table 4.29

Occupation * Service Cross Tabulation

 Count

Service
Low Average High Highest Total
Occupation Student 5 6 2 13
Service 6 4 1 11
Business 2 15 24 3 44
Others 1 6 16 9 32
Total 3 32 50 15 100

Figure 4.27

The above data shows that the factor “service” was very important for the business class and the

service class people. They wanted that service should be up to the mark and they should not face any

problems because it leads to irritation.

CHAPTER 5

SWOT ANALYSIS

Strengths

1. Diversity, resilience and flexibility.

2. Multinational bank with a good financial backup from UK.

3. Quality service is assured if one has a banking relationship with Indusind bank.

4. Good infrastructure and good incentives for the result oriented employees.

5. Large number of branches in metros.

6. Strong sales team who are recruited through interviews.

Weaknesses

1. Number of Indusind bank ATMs is less than its close competitors.

2. Average quarterly balance is comparatively higher than most of its competitors.

3. Bank charges are high (Demand draft, Pay order charges).

4. Customer of middle income group hesitates to start a relationship with Indusind bank.

Opportunities

1. Explore the market with Parivar account.

2. Lot of scope for product variation.

3. Tap the middle income group and the salaried class.

4. Lot of scope for growth in the Indian market.

Threats

1. ATM infrastructure of its competitors.

2. Players have similar strategies.

3. There is not much differentiation between the services and products of other banks.
 FINDINGS AND CONCLUSION

FINDINGS

1. About 36% customers of the private banks are very satisfied with their services.

2. About 20% customers are very satisfied and about 19% were dissatisfied with public sector

banks services.

3. In cooperative banks about 45% of the customers are very satisfied due to their fast services.

4. About 54% customers of the foreign bank are very satisfied with their services.

5. About 33% customers visit the branch more than 12 times. These customers include current

account holders and user of demat services. People visiting less than 4 times i.e. 30% are

mainly holders of saving accounts as their transaction occur mainly through ATM.
 6. When it comes to what customer wants from bank the first and for most thing is quality

services, this is the basic need of every customer. The other thing that comes after quality

service is transparency almost 59% voted for it.

7. People have a mindset before investment, why do people invest was a big question but after

analysis the picture became clear, approximately 82% people said that they invest to save

tax. The remaining 18% said to somehow increase their capital through investments is their

only motto.

8. During the study it was found that approximately 30% of the respondents belonged to age

group less than 25 years and about 35% between 25-40 years.

CONCLUSION

Thus, Indusind bank has been able to use technology to provide value-added service to its customers

during the recent year. For Indusind bank, technology is an integral part of their business. However,

their overall progress could have been smoother but for certain internal and extraneous factors and

also a pressure on spreads due to a competitive market. E-banking has become a necessary survival

weapon and is fundamentally changing the banking industry worldwide. Today, the click of the

mouse offers customers banking services at a much lower cost and also empowers them with

unprecedented freedom in choosing vendors for their financial service needs. No country today has a

choice- whether to implement E-banking or not given the global and competitive nature of the

economy. Indusind bank has top grade and constantly think of new innovative customized packages

and services to remain competitive. The invasion of banking by technology has created an
information age and commoditization of banking services. Indusind bank have come to realize that

survival in the new e-economy depends on delivering some or all of their banking services on the

Internet while continuing to support their traditional infrastructure. The rise of E-banking is

redefining business relationships and the most successful banks will be those that can truly

strengthen their relationship with their customers. Without any doubt, the international scope of E-

banking provides new growth perspectives and Internet business is a catalyst for new technologies

and new business processes.

 RECOMMENDATIONS

These are few recommendations which can help Indusind bank to stay ahead in the competition.

➢ Brand building: Indusind bank need to build a good brand image by providing innovative

products and top class services accordingly with their products.

➢ Improve its services: There are many people who were not too much satisfied with the

services provided by the Indusind bank.the4 services provided by the other multinational

banks in India are very better as compared with Indusind bank therefore Indusind bank

strongly needs to improve its services in order to complete with the other multinational and

private sector banks in India.

➢ Indusind bank should install a number of offsite ATMs to make its presence felt in area

where it has low or no presence at all.

➢ Understand challenges that Indusind bank is facing from the competition and also analyze

and understand the future prospects and use it to understand the opportunities and threats

facing the business and the factors driving success.

➢ Get insight into performing better in the market.

➢ Pinpoint growth in to the performing better in the market

➢ Identify the market and brand leaders and understand the competitive environment

➢ Identify the needs of the various segments of the consumers: For example. A senior

citizen might opt for the higher-cost MNC bank simply because its offer free home and pick

up delivery of even small values cheques. A businessman would like a bank that offers a

sweep facility.
 Annexure I

FINANCIAL REPORT

Balance Sheet as at 31 March, 2010

Capital & Liabilities For the year ended For the year ended
31.3.2010 (Rs. 000s) 31.3.2009 (Rs. 000s)
Capital 5,281,975 5,281,975
Reserves & Surplus 52,726,184 40,334,119
Deposits 341,740,351 284,598,056
Borrowings 63,518,196 79,167,877
Other Liab. & Provisions 125,265,063 150,164,127
Total Capital & Liabilities 588,531,769 459,546,154

Assets
Cash & Bal. with the RBI 20,035,416 14,012,047
Balances with banks & Money 20,232,683 33,868,569
at call and short notice
Investments 119,022,852 106,317,316
Advances 301,037,976 240,767,280
Fixed Assets 8,772,625 8,913,964
Other Assets 119,430,217 55,666,978
Total Assets 588,531,769 459,546,154
Contingent liabilities 8,159,001,109 3,809,554,242
Bills for collection 56,331,265 46,620,844

Profit and Loss Account as at 31 March, 2010

For the year ended For the year ended

31.3.2010 (Rs. 000s) 31.3.2009 (Rs. 000s)
Income 40,427,830 30,563,503
Other income 13,473,330 10,577,377
Total income 53,901,160 41,140,880

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

QUESTIONNARE

Personal Details

1. NAME--------------------------------------------------------------------------------------------

2. Age

a) Below 20 years b)20- 40 years

b) 40- 60 years d) above 60 years

3. Sex

a) Male b) Female

4. Marital Status

a) Married b) Single

5. Occupation

a) Student b) Service

c) Business d) Others

6. Annual Income

a) Below Rs. 2,00,000 p.a.

b) Between Rs. 2,00,000 & 5,00,000

c) Above 5,00,000
6. Contact Number/Email

-------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------

1. Your criteria for choosing a particular bank:

(Please tick the appropriate box, 1- lowest 2-low 3- average 4-high and 5 the

Highest)

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

2. Rate the following banks on a scale of 1 to 5 of satisfaction level

(Please tick the appropriate box, 1 being the lowest and 5 the highest)

Rating ScaleBank

1 2 3 4 5
1. Indusind Bank
2. Axis Bank
3. Yes Bank
4. IDBI Bank
5. HDFC Bank
 3. Any other facilities not provided by your current bank?

4. Do you have relationships with other banks, if yes, please specify

a) Axis Bank b) HDFC Bank

c) Yes Bank d) IDBI Bank

Others……………………………………………………………………..

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

BANK Induslnd Axis Yes bank HDFC HDFC IDBI

bank Bank Bank Bank
1.saving a/c
2.current a/c
3.Term deposit
4.Credit cards
5.Loans
6.Insurance
7.Locker
For Indusind Bank Customers only

1. What facilities are you availing in Indusind Bank?

a. Saving A/c

b. Current A/c

c. Term Deposits

d. Credit cards

e. Loans

f. Insurance

g. Locker

h. Others…………………………………………………………

1. Are you happy with the current services and products being offered at Indusind Bank?

a. Yes b. No

1. How many times do you use ATM’s in a month?

a) 1-4 times

b) 5-10 times

c) More than 10 times

d) Never
 BIBLIOGRAPHY
1. Internet Sites

• www.google.com

• www.economictimes.com

• www.indusindbank.co.in

• www.hsbc.com

• www.abnramro.com

• www.hdfcbank.com

• www.icicibank.com

• www.yesbank.com

1. Magazines and Newspapers.

• Economic Times

• Business India

• The Times of India

1. Books

• Kotler, Philip. Principles of Marketing. Asoke K. Ghosh, 2006

• Malhotra, Naresh K. Marketing Research. Asoke K. Ghosh, 2007

1. Product Material, Indusind Bank.