A PROJECT PROPOSAL ON

“Retail Banking business in Nashik”

with special reference to
IDBI Bank

SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
UNDER THE FACULTY OF
BANKING AND FINANCE

IN PARTIAL FULFILMENT OF THE REQUIREMENTS

FOR AWARD OF THE DEGREE BACHELORS IN COMMERCE

SUBMITTED BY
HARISH NIVRUTTI CHAVAN
BYK COLLEGE OF COMMERCE
THIRD YEAR B.COM
DIV: - A, ROLL NO.: - 17

UNDER THE GUIDANCE OF

PROF. DR. S.S. MORE
YEAR – 2023-24

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 INDEX

Sr. Contents Page

NO. No.
1 Introduction 3
2 Objectives Of Project Work 4
3 Project Methodology 5
4 Scope Of Project 7
5 Limitations Of Project 8
6 Retail Banking Of IDBI Bank 9
7 Conclusions And Suggestions 11
8 Reference 12

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 1.INTRODUCTION

“BANK AISA DOST JAISA.” It is the new marketing mantra today. The same

applies to banking as well. Retail banking and rural banking were once
considered as taboos by the leading foreign and domestic banks. But cutthroat
competition, innovation and advanced technology have altogether changed the
face of banking sector. Now all banks have recognized the importance of retail
banking.

Retail banking is that part of a bank that offers products and services
primarily to individual customers, professional, self-employed individuals or
small businesses. The focus is on creating products and services that meet the
needs of the target customers and are profitable for the bank as well.

The approach to retail banking products is more is more on a mass

production basis wherein all risk and operations are based on and geared to
cater to a large number of customers. This is therefore, significantly different
from corporate banking or wholesale banking where focus is on large sized
customer accounts rather than large numbers of customers.

Understanding retail banking will help in servicing your customer better

as it would give you a perspective and insight into how such products are
structured and specific requirements for each set of products. This would help
you advice your customer in a more informed manner besides making you a
more informed consumer.With the advent of ATMs, ‘Anytime banking’ has
come into picture. Satellites and telecom networks across the world have made
‘Anywhere banking’ possible. Now it is the turn of ‘Anyhow banking’,

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 2.OBJECTIVES OF PROJECT WORK

My project entitled “Retail Banking Business In NASHIK With Special

Reference To IDBI Bank” aims at studying the scope of retail banking
business in NASHIK. The objective of doing this project is defined as under.

1) To study the retail banking business in NASHIK

2) To study the retail banking business of IDBI in NASHIK

3) To study how can IDBI improve on its retail banking business

4) To compare the position of retail banking business in IDBI Bank with

its peer banks (Axis Bank, LIC, ICICI Bank, Induslnd, Corporation Bank,

Oriental Bank of Commerce).

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 3.PROJECT METHODOLOGY
 Research Type

My research is based on the primary data. Primary data has been used to
understand the scope of retail banking business in Nashik and then to make
suggestions useful for the bank under study i.e. IDBI Bank ltd.

 Data Type

Primary data has been used for the purpose of study of ' Retail banking
business in Nashik with special reference to IDBI Bank '.

 Sample Selection

To collect primary data regarding the scope of retail banking business of IDBI
Bank in Nashik, I selected a list of peer banks and compared it with the bank
under study. The list of peer banks was selected on the basis of their visibility in
Nashik, scale of operation in Bihar and the products they offer. If all these
factors were similar to IDBI, the banks were finalized as peer banks. To collect
their details the branches in the main area were selected.

 Data Collection Method

In order to collect the primary data, the method used was personal interview of
branch managers peer banks of IDBI bank’s in the area. A questionnaire was
prepared in order to collect the data a sample of which is attached in the
report. Apart from talking to the branch managers, an interaction with the staff
members and the customers at the branch gave an overview of the
performance of the Bank on the individual level. This helped to look at the retail
business from different perspectives and better suggestion could be given to
the bank under study to improve upon the same.
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  Tools Used for Data Analysis

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 Bar,Charts, Tables. Bar charts proved really useful
tools to show the result in a well clear, ease and simple way. Because I used bar
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.

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 4.SCOPE OF THE STUDY

To achieve the above objective I have not restricted my study to just IDBI Bank.

In order to study about the retail banking business in Nashik, and to understand

the scope that IDBI has in this business, I have extended my project to do a

detailed study of retail banking in the peer banks of the bank undertaken.

Through a comparative study between the peer banks and IDBI, I could arrive to

a conclusion of the scope of retail business in Nashik.

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 5.Limitations of Project

To make mistake is human nature and I’m no exception. I have tried to make

this project approachable and helpful for the bank, but at the same time I

accept the occurrence of intermittent mistakes and do accept them sincerely.

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 6.RETAIL BANKING OF IDBI BANK

WHAT IS RETAIL BANKING?

Retail banking is however; quite broad in nature it refers to the dealing

of commercial banks with individual customers, both on liabilities and assets
sides of the balance sheet. Fixed current/savings accounts on the liabilities side;
and mortgages, loans (e.g. personal, housing, auto and educational) on the
assets side are the more important of the products offered by banks. Related
ancillary services include credit cards, or depository services. Today’s retail
banking sector is characterized by three basic characteristics.
 Multiple products (deposits, credit card, insurance, investments and
securities).
 Multiple channels of distribution (call center, branch, internet and kiosk);
and
 Multiple customer groups (consumer, small business, and corporate)

DEFINITION:

Retail Banking Services :- Banking services provided to individual

members of the public as opposed to those provided to businesses and
institutions.
An Overview Of The Product Preferred Banking
 Power Plus Account
We bring to you a product that reflects and matches your financial needs and
requirements at every step. Power Plus account allows you to access a
complete suite of product and services and enjoy world class banking
experience, complimenting your professional and personal goals. This account
helps you take complete charge of your banking by providing multiple channel
and products and a wide range of benefits to help your time and money.
 Deposits
Savings Bank accounts commonly referred to as Savings accounts, have huge
potential for mobilizing low cost deposit and stable deposits. In our Bank,
savings accounts are offered to prospective customers as value added retail
liability product.
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  Regular Savings Account
At IDBI Bank, we believe that different people have different needs. Thus, we
offer various different types of Savings Account to cater to our diverse customer
base. Be it individuals, kids, women, corporate, senior citizens, we have an
account tailor-made for each one of them.
 Current Accounts
Current accounts are meant for customers who have to carry out business and/
or large number of transactions in the account every day. There are no
restrictions on the number of transactions in current accounts.
 Fixed Deposits
Fixed Deposits, also known as Term Deposits or Time Deposits, are deposits
accepted by the bank for fixed period and are repayable on expiry of the fixed
period. Interest is paid at quarterly rests to the depositor. At the specific
request of the depositor, interest could be paid at monthly rests also, but at a
discounted rate. The Bank decides the rates of interest on fixed deposits of
various maturities from time to time by taking into account the market
conditions and directives of the Reserve Bank of India in this regard. IDBI Bank
revises fixed deposit rates at an attractive interest rate of 7.50% p.a.
for 500 days for normal deposits and 8.25% p.a. for senior citizens
 Recurring deposit
Ideal for those who want to save a fixed sum every month
This type of deposit helps you add to your savings at your complete
convenience. You can start saving any amount from Rs. 100 to Rs. 1 lakh every
month. The amount as decided by you, will be deducted every month from
your savings account. Further, there is no Tax deducted at source on these
deposits and also no charges for executing your standing instructions.
 Loans
We, at IDBI Bank offer a wide range of loan products to suit all your needs
ranging from home to education, a holiday to buying a laptop. Select from our
loan offerings and we shall be glad to service you on the same. The various loan
offerings by IDBI Bank are as follows:
Choose from various range of Personal Banking services like:
➢ Home Loans
➢ Loan Against Property
➢ Education Loan
➢ Personal Loan
➢ Loans Against Securities

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 7.CONCLUSIONS & SUGGESTIONS
Basic Findings
 The credibility of IDBI bank is good in comparison to its competitors as
GOI (Government Of India) is a major share holder in the company.
 IDBI bank has potential market in Nashik region and thus has
opportunities for growth.
 The products of IDBI bank has good credibility in the region and is in par
with its competitors.
 The initial balance for A/C opening is Rs, 5000/- and that’s why people are
reluctant in opening the same but now the bank provides Zero Balance
Account which can help them in increasing their CASA ratio.
 There is still an unawareness among the mass about the bank being a fully
owned Government bank.
 The TPD products of the bank is not yet popular among the mass.
 The various rates of interest like the current interest rate of Fixed deposit
which is 9.5% for 500 days and an additional 9.75% for senior citizen is
quite appreciated by the common mass.
 The privilege given to the preferred customer and royal customer like
home service is liked and appreciated by the customers.
 The ATM facilities provided by the bank makes its services hustle free.
The vaious add ons by the ATM are cash deposit by way of envelopes,
payment of bills, payment of LIC premium, recharging mobile phones,
card to card transfer.
 IDBI is a very flourished bank. During the two months I could not find any
flaw in the functioning of the bank. After doing my training in the bank
and doing my researh work I could reach to a few conclusion which are
mentioned above. From these conclusions I could come to the following
suggestions.
 Though IDBI is in its expansion stage, it does not have much visibility in
Nashik till date. IDBI has only 15 branches in Nashik. There is big untapped
market in nashik, so it becomes necessary for IDBI bank, in order to take
an edge over the competitors, to open more branches to serve the vast
market of nashik especially.
 Bank will be in a WIN –WIN situation if it provides valued services to its
customers and create a value creation for them.
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 8.REFERANCES

 Books referred to understand and make this project were :- B1- Anti-
Money Laundering & Know Your Customer ( Indian Institute Of Banking &
Finance).

 B2- IC-33 Life Insurance (Insurance Institute of India). Few more

references to make this project were:-

 SOF (Schedule of Facilities) of every account helped to know about the

account better

 A Profile Of banks by- Reserve Bank of India Website

 www.google.com www.idbi.com
 https://inet.idbibank.co.in

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THANK YOU

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