INTERNSHIP

DISSERTATION
ON
“Analyzing product penetration and service
positioning offered by different private
commercial banks & assessing the business
potential for Dhanlaxmi Bank”

Accomplished at
DHANLAXMI BANK

“Submitted in partial
fulfillment of
Post Graduation Diploma In
Business Management”

1| Page
Submitted To:
Submitted By:
Mr.Rachit Haldiya
Suresh Kumar Tolani
Faculty Roll
No.-1517 FMS-IRM
Session-2009-2011

2| Page
 CERTIFICATE

Certified that this project report entitled “Analyzing

product penetration and service positioning
offered by different private commercial banks &
assessing the business potential for Dhanlaxmi
Bank” is a record of project work done independently by Mr.
Suresh Kumar Tolani under my guidance and supervision
and that it has not previously formed the basis for the award of
any degree, fellowship or association with him.

DATE:
NAME AND SIGNATURE
Mr. Rachit Haldiya
(FACULTY GUIDE)
……………………
………………………………..
Mr. Anuj Dasot
(CORPORATE GUIDE)

3| Page
 ……………………
………………………………..

2| Page
 DECLARATION

I hereby declare that this project report entitled

“Analyzing product penetration and service
positioning offered by different private
commercial banks & assessing the business
potential for Dhanlaxmi Bank” is a bona fide record of
work done by me during the course of summer project work
and that it has not previously formed the basis for the award to
me for any degree/diploma/association/fellowship or other
similar title of any other institute/society.

DATE:
Suresh Kumar Tolani

1| Page
 ACKNOWLEDGEMEN
T
If you want your efforts to reflect, then just abide by
the rules made by a perfect.

I strictly followed the above line and so I would like to express

my heartfelt thanks to my Project Guide Mr. Anuj Dasot,
(RELATIONSHIP MANAGER), for providing me the
opportunity to step into the practical corporate world to team
up my classroom learning with the exposure available in the
organization, which gave me a robust opportunity to learn.

I would like to express my sincere thanks to Director FMS-

IRM Brig. S. K. Gaur and Faculty Coordinator Prof. R. C.
Mathur for giving me an opportunity to learn.

I am very much thankful to Mr. Rachit Haldiya (FACULTY

GUIDE) for his continuous guidance and support, which proved
to be very helpful throughout the project tenure.

I also take privilege to extend my earnest thanks to Mrs. Sneh

Walia Garg (Operations Manager), Mr. Harsh Dube
(Regional Sales Manager) and Mr. Salabh Priyadarshi
(Manager, Trade & Advances Group) for sparing their
precious time and providing all the needed information
necessary for the accomplishment of the project.

1| Page
Date:
Suresh Kumar Tolani

2| Page
 TABLE OF
CONTENTS
S.N Topics Page
o. No.
EXECUTIVE SUMMARY 7
1 CHAPTER:-1 INTRODUCTION 8
1.1 STATEMENT OF THE PROBLEM 9
1.2 OBJECTIVE OF THE STUDY 10
1.3 RESEARCH METHODOLOGY 11
1.4 UTILITY OF THE STUDY 13
1.5 LIMITATIONS OF THE STUDY 14
1.6 REVIEW OF LITERATURE 15
1.7 INDUSTRY PROFILE 23
2 DHANLAXMI BANK PROFILE 31
2.1 BUSINESS MIX OF DHAN BANK 36
2.2 STRATEGICAL ASPECTS OF DHAN BANK 37
2.3 PRODUCT SUITE 40
2.4 COMPARISON OF PRODUCT FEATURES 42
2.5 MARKET SHARE ANALYSIS 45
3 DATA ANALYSIS AND INTERPRETATION 46
3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS 47
OF THEIR NEEDS

1| Page
3.2 CRITERIA OF SELECTING THE BANK FOR BANKING 48
REQUIREMENTS

3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK 49

CUSTOMERS

3.4 SATISFACTION LEVEL OF PRIVATE SECTOR BANK 50

CUSTOMERS

3.5 RELATION BETWEEN SELECTION CRITERIA AND 51

SATISFACTION LEVEL

3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES 52

ABOUT NEW PRODUCT AND SERVICES

3.7 MOBILE BANKING AND INTERNET BANKING SERVICES: 53

PATTERN OF USAGE

3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR 54

3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT 55
INCOME LEVELS

3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT 57

DIFFERENT LEVELS OF AGE:-

4 SUMMARY OF FINDINGS AND SUGGESTIONS 58

4.1 SWOT ANALYSIS 60
5 BIBLIOGRAPHY 62
6 APPENDIX 63

LIST OF GRAPHS, FIGURES &

TABLES
Topics PAGE
FIGURE:-1 STRUCTURE OF INDIAN BANKING INDUSTRY 24

FIGURE:-2TRADITIONAL BANKING 29

1| Page
FIGUER:.3RELATIONSHIP BANKING 30

GRAPH:-2.1 BUSINESS MIX OF DHANLAXMI BANK 36

GRAPH:-2.2 GEOGRAPHICAL BUSINESS MIX OF DHAN BANK 36

GRAPH:-2.3 NETWORKING ANALYSIS 37

GRAPH:-2.4 INCREASE IN CASA 38

FIGURE:-4 PRODUCT SUITE 40

TABLE:-2.1 COMPARISON OF RETAIL PRODUCTS 42

TABLE:-2.2- COMPARISON OF SERVICES OFEERED 43

TABLE:- 2.3 COMPETITOR ANALYSIS AT A GLANCE 33

TABLE:-2.4 MARKET CAPITALIZATION OF PRIVATE BANKS 45

GRAPH:-2.5 MARKET SHARE ANALYSIS 45

TABLE:3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS 47

OF THEIR NEEDS

GRAPH:-3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS 47

OF THEIR NEEDS

TABLE:3.2 CRITERIA OF SELECTING THE BANK FOR BANKING 48

REQUIREMENTS

GRAPH:-3.2 CRITERIA OF SELECTING THE BANK FOR BANKING 48

REQUIREMENTS

TABLE:3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK 49

CUSTOMERS

GRAPH:-3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK 49

CUSTOMERS

TABLE:3.4 SATISFACTION LEVEL OF PRIVATE SECTOR BANK 50

CUSTOMERS

GRAPH:-3.4 SATISFACTION LEVEL OF PRIVATE SECTOR 50

BANKCUSTOMERS

TABLE:3.5 RELATION BETWEEN SELECTION CRITERIA AND 51

SATISFACTION LEVEL

GRAPH:-3.5 RELATION BETWEEN SELECTION CRITERIA AND 51

SATISFACTION LEVEL

1| Page
TABLE:3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES 52
ABOUT NEW PRODUCT AND SERVICES

GRAPH:-3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES 52

ABOUT NEW PRODUCT AND SERVICES

TABLE:3.7 MOBILE BANKING AND INTERNET BANKING SERVICES: 53

PATTERN OF USAGE

GRAPH:-3.7 MOBILE BANKING AND INTERNET BANKING SERVICES: 53

PATTERN OF USAGE

TABLE:3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR 54

GRAPH:-3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR 54

TABLE:3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT 55

INCOME LEVELS

GRAPH:-3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT 55

INCOME LEVELS

TABLE:3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT 57

DIFFERENT LEVELS OF AGE:-

GRAPH:-3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT 57

AT DIFFERENT LEVELS OF AGE:-

EXECUTIVE SUMMARY
Retail banking is a banking service that is geared primarily
toward individual consumers. Retail banking entities provide a
wide range of personal banking services including offering
current accounts, deposit accounts and saving accounts, bill
paying services, as well as debit and credit cards. Through
retail banking, consumers may also obtain mortgages and
personal loans.

Retail banking industry is expected to reach a position of high

growth till 2011. This requires expansion and diversification of

1| Page
retail portfolio, better penetration and faster service
mechanism.

As current market place is highly competitive and each

corporate is expanding its business round the globe for its
global presence so they do study related to market trend
regarding to their market share in comparison to their
competitors. Jaipur branch of Dhanlaxmi is functional since
September 2009. They are new to Jaipur market so this study is
carried out to estimate the business potential for Dhanaxmi
Bank. For this, analysis of the sales trends of Financial product,
ie Saving a\c , Current a\c , Fixed Deposits & investment
services has completed in Jaipur city. This study is confined to
some of the areas like M.I. Road, Sansar Chandra Road, Saraogi
mansion etc of Jaipur city

The project entitled “ANALYZING PRODUCT PENETRATION

AND SERVICE POSITIONING OFFERED BY PRIVATE BANKS
& ASSESING THE BUSINESS POTENTIAL FOR DHANLAXMI
BANK” helped the bank to understand the scope of retail
banking in certain areas of Jaipur city. Products which have
covered in the study were Saving A/c, Current A/c and
Investments.

The utility of project can be derived from the fact that today
banks have diversified products. Now saving accounts are of
many types. Current account have new face i.e. Roaming
current account.

2| Page
 CHAPTER:-1

INTRODUCTIO

N
2| Page
2| Page
 STATEMENT OF THE
PROBLEM

• Dhan bank is new to the Jaipur city. ICICI, HDFC, AXIS

BANK & YES BANK is already in the market. These are the
major players of private bank industry. The market
competition is very high. Dhan bank is looking to position
its products and services faster to reach their vision of
being among the top five private banks.

• Dhan bank is looking to tap the market around the branch

in the range of five kms.

• As it is their first branch, people are not aware about dhan

bank. Advertisement campaign is still awaited and they
have to increase the business without it.

• Dhan bank is looking towards their competitors, how they

have penetrated and positioned services in the market of
Jaipur so that they can differentiate their products
accordingly.

• Knowing your customer is a key tool for market

penetration. Dhan bank wants an analysis on
demographics of Jaipur market to assess the business
potential for them.

1| Page
 OBJECTIVE OF THE
PROJECT

PRIMARY OBJECTIVES
• To judge the business potential for
DHANLAXMI BANK, JAIPUR.
• To compare products and services
offered by major Private Banks.
• To judge the level of competition at
specified market around 5 Kms. area of
the branch office.
• To judge the awareness level of
Dhanlaxmi Bank in Jaipur.

SECONDARY OBJECTIVES
• To promote the products and services
offered by Dhanlaxmi Bank.

• To increase the awareness level of Dhan

Bank in Jaipur.

2| Page
 •
RESEARCH METHODOLOGY

This section deals with the methodology employed to carry out

the project. A well structured process is important for the
successful execution of a good field work. It is important to
develop good background information before actually
interviewing the respondents.

1. Research Design:-After analyzing problem statement

and objectives of the study the design of research was set
to be exploratory research.

2. Sampling Design:-

 UNIVERSE:- huge customer base in Jaipur city

availing public or private sector banks for their
banking requirements.

 SAMPLING UNIT:-comprised of retail store owners

and salaried persons over there.

 SOURCE LIST:-the sample frame was drawn by short

listing the markets around 5 Kms. of branch.

 RESEARCH LOCATION:-survey was conducted in

Jaipur city at M.I.Road, Sansaar Chandra Road,
Ganpati plaza, Saraogi mansion.

 SAMPLING METHOD:-sampling technique applied

for conduction of the survey is Non Probability

1| Page
 Sampling. The units were selected on the basis of
Convenient Sampling. Convenience in terms of
proximity, communication, interest of respondents
was preferred.

 SAMPLE SIZE:-sample size for the study is taken

100.

1. DATA COLLECTION:-
• PRIMARY DATA COLLECTION:-Primary data was
collected with the help of a set of questions, and
interviewing the customers. The questionnaire
contained brief customer profile and followed by 8
questions regarding respondent’s banking activities
and rest 5 regarding their investment activities. All
the questions were closed ended. Customer
interview also provided important information
required for study.

• SECONDARY DATA COLLECTION:-Secondary

data is collected via internet, books, journals
company website and brochures etc. which provided
adequate information for comparative study of
products and services offered by private banks.

1. DATA ANALYSIS AND REPRESENTATION TOOLS:-MS-

Excel and MS-Access are the software used to find out the
important relationships. Pie charts, bar diagram, tables
are used to represent the results of survey conducted.

2| Page
UTILITY OF THE STUDY:

Utility of the study can be derived from following facts:

➢ Current market situation is highly competitive where

products are diversified. Every player has different types
of current and saving accounts as well as attractive fixed
deposit schemes. This study can help Dhan bank to know
the needs and requirements of customers.

➢ This study can help Dhan bank to evaluate the marketing

and sales strategies of competitors as how they have
positioned their products in the customer mindset.

➢ Survey results can help to modify their upcoming products

according to customer needs and requirements.

➢ Execution of survey has helped to increase awareness of

Dhanlaxmi Bank among the customers surveyed.

➢ Study can help the bank to judge the required service

quality and benchmarks in Jaipur market.

1| Page
LIMITATIONS OF THE STUDY

 Sample Size

The sample size for customer survey taken 100 was not
enough as compared to huge customer base of private banks.
The findings based on this sample size might not provide
accurate results.

 Respondent Unawareness

This is the first branch of dhanlaxmi bank in Jaipur. People are

not aware of the bank. Advertisement campaign has not
started.

 Respondent Non Co-operation

Many respondents were unwilling to disclose information about

their banking and investment due to suspicion, lack of time,
lack of interest.

 Reliability of Competitor Details

Most of competitor details were gathered through secondary

data sources other than linked directly to competitor. The data
collected through these sources might not be reliable which
can deviate the analysis results.

 Time Shortage

The project duration of 45 days proved to be insufficient to

attend to all the components of research problem. Occasionally
compromises over quality and quantity were made due to time
acuteness.

1| Page
REVIEW OF LITERATURE:
RETAIL BANKING
DEFINITION:

“Retail banking is typical mass-market banking

where individual customers use local branches of
larger commercial banks. Services offered include:
savings and checking accounts, mortgages, personal
loans, debit cards, credit cards, and so”

The Retail Banking environment today is changing fast.

The changing customer demographics demands to create a
differentiated application based on scalable technology,
improved service and banking convenience. Higher penetration
of technology and increase in global literacy levels has set up
the expectations of the customer higher than never before.
Increasing use of modern technology has further enhanced
reach and accessibility.
The market today gives us a challenge to provide multiple
and innovative contemporary services to the customer through
a consolidated window as so to ensure that the bank’s
customer gets “Uniformity and Consistency” of service delivery
across time and at every touch point across all channels. The
pace of innovation is accelerating and security threat has
1| Page
become prime of all electronic transactions. High cost structure
rendering mass-market servicing is prohibitively expensive.
Present day tech-savvy bankers are now more looking at
reduction in their operating costs by adopting scalable and
secure technology thereby reducing the response time to their
customers so as to improve their client base and economies of
scale.
The solution lies to market demands and challenges lies in
innovation of new offering with minimum dependence on
branches – a multi-channel bank and to eliminate the
disadvantage of an inadequate branch network. Generation of
leads to cross sell and creating additional revenues with
utmost customer satisfaction has become focal point worldwide
for the success of a Bank.

Today’s retail banking sector is characterized by three

basic characteristics:

 Multiple products (deposits, credit cards, insurance,

investments and securities)
 Multiple channels of distribution (call center, branch,
internet)
 Multiple customer groups (consumer, small business,
and corporate).

2| Page
STRATEGIES FOR INCREASING RETAIL BANKING
BUSINESS

 Constant product innovation to match the

requirements of the customer segments
The customer database available with the banks is the best
source of their demographic and financial information and
can be used by the banks for targeting certain customer
segments for new or modified product. The banks should
come out with new products in the area of securities, mutual
funds and insurance.

 Quality service and quickness in delivery

As most of the banks are offering retail products of similar
nature, the customers can easily switchover to the one,
which offers better service at comparatively lower costs. The
quality of service that banks offer and the experience that
clients have, matter the most. Hence, to retain the
customers, banks have to come out with competitive
products satisfying the desires of the customers at the click
of a button.

 Introduction of new delivery channels

1| Page
 Retail customers like to interface with their bank through
multiple channels. Therefore, banks should try to give high
quality service across all service channels like branches,
Internet, ATMs, etc.

 Tapping of unexploited potential and increasing the

volume of business
This will compensate for the thin margins. The Indian retail
banking market still remains largely untapped giving a
scope for growth to the banks and financial institutions. With
changing psyche of Indian consumers, who are now
comfortable with the idea of availing loans for their personal
needs, banks have tremendous potential lying in this
segment. Marketing departments of the banks be geared up
and special training be imparted to them so that banks are
successful in grabbing more and more of retail business in
the market.

 Infrastructure outsourcing
This will help in lowering the cost of service channels
combined with quality and quickness.

 Detail market research

Banks may go for detail market research, which will help
them in knowing what their competitors are offering to their

1| Page
 clients. This will enable them to have an edge over their
competitors and increase their share in retail banking pie by
offering better products and services.

 Cross-selling of products
PSBs have an added advantage of having a wide network of
branches, which gives them an opportunity to sell third-
party products through these branches.

 Business process outsourcing

Outsourcing of requirements would not only save cost and
time but would help the banks in concentrating on the core
business area. Banks can devote more time for marketing,
customer service and brand building. For example,
Management of ATMs can be outsourced. This will save the
banks from dealing with the intricacies of technology.

 Tie-up arrangements
PSBs with regional concentration can reap the benefit of
reaching customers across the country by entering into
strategic alliance with other such banks with intensive
presence in other regions. In the present regime of falling
interest and stiff competition, banks are aware that it is
finally the retail banking which will enable them to hold the
head above water. Hence, banks should make all out efforts
to boost the retail banking by recognizing the needs of the
customers. It is essential that banks would be imaginative in

2| Page
 predicting the customers' expectations in the ever-changing
tastes and environments. It is the innovative and
competitive products coupled with high quality care for
clients will only hold the key to success in this area. In short,
bankers have to run very fast even to stay where they are
now. It is the survival of the fastest now and not only
survival of the fittest.

EMERGING ISSUES IN HANDLING RETAIL BANKING

 KNOWING CUSTOMER
‘Know your Customer’ is a concept which is easier said than
practiced. Banks face several hurdles in achieving this. In
order to that the product lines are targeted at the right
customers-present and prospective-it is imperative that an
integrated view of customers is available to the banks. The
benefits flowing out of cross-selling and up-selling will remain
a far cry in the absence of this vital input. In this regard the
customer databases available with most of the public sector
banks, if not all, remain far from being enviable.
What needs to be done is setting up of a robust data
warehouse where from meaningful data on customers, their
preferences, there spending patterns, etc. can be mined.
Cleansing of existing data is the first step in this direction.
PSBs have a long way to go in this regard.

2| Page
 TECHNOLOGY ISSUES
Retail banking calls for huge investments in technology.
Whether it is setting up of a Customer Relationship
Management System or Establishing Loan Process Automation
or providing anytime, anywhere convenience to the vast
number of customers or establishing
channel/product/customer profitability, technology plays a
pivotal role. And it is a long haul. The Issues involved include
adoption of the right technology at the right time and at the
same time ensuring volumes and margins to sustain the
investments.
It is pertinent to remember that Citibank, known for its
deployment of technology, took nearly a decade to make
profits in credit cards. It has also to be added in the same
breath that without adequate technology support, it would be
well nigh possible to administer the growing retail portfolio
without allowing its health to deteriorate. Further, the key to
reduction in transaction costs simultaneously with increase in
ability to handle huge volumes of business lies only in
technology adoption.
PSBs are on their way to catch up with the technology
much required for the success of retail banking efforts. Lack
of connectivity, stand alone models, concept of branch
customer as against bank customer, lack of convergence
amongst available channels, absence of customer profiling,

2| Page
 lack of proper decision support systems, etc., are a few
deficiencies that are being overcome in a great way.
However, the initiatives in this regard should include creating
flexible computing architecture amenable to changes and
having scalability, a futuristic approach, networking across
channels, development of a strong Customer Information
Systems (CIS) and adopting Customer Relationship
Management (CRM) models for getting a 360 degree view of
the customer.

 ORGANIZATIONAL ALIGNMENT
It is of utmost importance that the culture and practices of an
institution support its stated goals. Having decided to take a
plunge into retail banking, banks need to have a well defined
business strategy based on the competitive of the bank and
its potential. Creation of a proper organization structure and
business operating models which would facilitate easy work
flow are the needs of the hour. The need for building the
organizational capacity needed to achieve the desired results
cannot be overstated.
This would mean a strong commitment at all levels,
intensive training of the rank and file, putting in place a
proper incentive scheme, etc. As a part of organizational
alignment, there is also the need for setting up of an effective
Corporate Marketing Division. Most of the public sector banks
have only publicity departments and not marketing setup. A

2| Page
 fully fledged marketing department or division would help in
evolving a brand strategy, address the issue of alienation from
the upwardly mobile, high net worth customer group and
improve the recall value of the institution and its products by
arresting the trend of getting receded from public memory.
The much needed tie-ups with
manufacturers/distributors/builders will also facilitated
smoothly. It is time to break the myth PSBs are not customer
friendly. The attention is to be diverted to vast databases of
customers lying with the PSBs till unexploited for marketing.

 PRODUCT INNOVATION
Product innovation continues to be yet another major
challenge. Even though bank after bank is coming out with
new products, not all are successful. What is of crucial
importance is the need to understand the difference between
novelty and innovation? Peter Drucker in his path breaking
book: “Management Challenges for the 21st Century” has in
fact sounded a word of caution: “innovation that is not in tune
with the strategic realities will not work; confusing novelty
with innovation (should be avoided), test of innovation is that
it creates value; novelty creates only amusement”. The days
of selling the products available in the shelves are gone.
Banks need to innovate products suiting the needs and
requirements of different types of customers. Revisiting the
features of the existing products to continue to keep them on
demand should not also be lost sight of.

2| Page
 PRICING OF PRODUCT
The next challenge is to have appropriate policies in place.
The industry today is witnessing a price war, with each bank
wanting to have a larger slice of the cake that is the market,
without much of a scientific study into the cost of funds
involved, margins, etc. The strategy of each player in the
market seems to be: ‘under cutting others and wooing the
clients of others’. Most of the banks that use rating models
for determining the health of the retail portfolio do not use
them for pricing the products. The much needed
transparency in pricing is also missing, with many hidden
charges. There is a tendency, at least on the part of few to
camouflage the price. The situation cannot remain his way for
long. This will be one issue that will be gaining importance in
the near future.

2| Page
 INDUSTRY
PROFILE

1| Page
BANKING BASICS

The Indian banking industry which is governed by the Banking

Regulation Act of India, 1949 can be broadly classified into two
major categories.

➢ Scheduled Banks
➢ Non-scheduled Banks

FIGURE:-1 STRUCTRE OF INDIAN BANKING

INDUSTRY

Scheduled banks comprise commercial banks and the co-

operative banks. In terms of ownership commercial banks can
be further grouped into nationalized banks, the State Bank of
India and its group banks, regional rural banks and private
sector banks(old/new domestic and foreign)

Banking regulation act of India, 1949 defines banking as

“accepting, for the purpose of lending or investment of
deposits of money from the public, repayable on
demand or otherwise and withdraw able by cheques,
draft and order or otherwise.”

In addition, Banks are allowed to perform certain activities

which are ancillary to this business of accepting deposits and
lending. A bank’s relationship with the public, therefore,
revolves around accepting deposit and lending money. Another
activity which is assuming increasing importance is transfer of
money, both domestic and foreign, from one place to another.
This activity is generally known as “Remittance Business” in
banking parlance. The so called forex (foreign exchange) is

2| Page
largely a part of remittance. It involves buying and selling o0f
foreign currencies.

The law governing Banking Activities in India is called

“Negotiable Instrument Act 1881”. The banking activities can
be classified as:

➢ Accepting deposits from public/others

➢ Transferring money from one place to another
➢ Acting as trustees
➢ Keeping valuable in safe custody
➢ Collection business
➢ Deposits
➢ Loans
➢ Lending money to public

2| Page
HISTORY
Banking in India originated in the last decades of the 18th
century with The General Bank of India which came into
existence in 1786. This was followed by The Bank of Hindustan.
Both of these are now defunct. The oldest bank in existence in
India is the State Bank of India, which originated in the Bank of
Calcutta (later Bank of Bengal) in June 1806. A couple of
decades late, foreign banks like Credit Lyonnais started their
Calcutta operations in 1850s. The first fully Indian owned bank
was The Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of

banks such as Punjab National Bank, in 1895 in Lahore and
Bank of India in 1906, in Mumbai. Both these were founded
under private ownership. The Reserve Bank of India formally
took on the responsibility of regulating the Indian banking
sector from 1935. After India’s independence in 1947, the
Reserve Bank of India was nationalized and given broader
powers.

POST-INDEPENDENCE

The partition of India in 1947 adversely impacted the economies of Punjab and
West Bengal, paralyzing banking activities for months. India's independence
marked the end of a regime of the Laissez-faire for the Indian banking. The
Government of India initiated measures to play an active role in the economic
life of the nation. This resulted into greater involvement of the
state in different segments of the economy including banking
and finance. The major steps to regulate banking included:
• In 1948, the Reserve Bank of India, India's central banking
authority, was nationalized, and it became an institution
owned by the Government of India.
1| Page
 • The Banking Regulation Act also provided that no new
bank or branch of an existing bank could be opened
without a license from the RBI, and no two banks could
have common directors.
However, despite these provisions, control and regulations,
banks in India except the State Bank of India, continued to be
owned and operated by private persons. This changed with the
nationalization of major banks in India on 19th July 1969.

NATIONALIZATION
By the 1960s, the Indian banking industry had become an
important tool to facilitate the development of the Indian
economy. At the same time, it had emerged as a large
employer, and a debate had ensued about the possibility to
nationalize the banking industry. The Prime Minister of India
expressed the intention of the GOI in the annual conference of
the All India Congress Meeting in a paper entitled "Stray
thoughts on Bank Nationalization."
After this, until the 1990s, the nationalized banks grew at a
pace of around 4%, closer to the average growth rate of the
Indian economy.

LIBERALISATION
In the early 1990s, the then Narsimha Rao government
embarked on a policy of liberalization, licensing a small
number of private banks. These came to be known as New
Generation tech-savvy banks, and included Global Trust Bank
(the first of such new generation banks to be set up), which
later amalgamated with Oriental Bank of Commerce, Axis
Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank.
This move, along with the rapid growth in the economy of
India, revitalized the banking sector in India, which has seen
rapid growth with strong contribution from all the three sectors
of banks, namely, government banks, private banks and
foreign banks.

1| Page
CURRENT SITUATION
Currently, India has 96 scheduled commercial banks (SCBs) -
27 public sector banks (that is with the Government of India
holding a stake), 31 private banks (these do not have
government stake; they may be publicly listed and traded on
stock exchanges) and 38 foreign banks. They have a combined
network of over 53,000 branches and 49,000 ATMs.
The industry is currently in a transition phase. On the one
hand, the Public Sector Banks which are the mainstay of Indian
banking system, are in the process of shedding their flab in
terms of excessive manpower, excessive Non Performing
Assets (NPAs) and excessive governmental equity, while on the
other hand the private sector banks are consolidating
themselves through mergers and acquisitions.
With he growth in the Indian economy which is expected to be
strong for services sector, the demand for the banking
services, especially retail banking, mortgages and investment
services are expected to be strong. One may also expect
mergers and acquisitions, takeovers and asset sales.
Banking industry has completely moulded the system with
some great technological developments and few revolutionary
thoughts. Introduction of MIS (MANAGEMENT INFORMATION
SYSTEM), HRIS (HUMAN RESOURCE INFORMATION SYSTEM),
ERP SYSTEMS has made this system quick and efficient.
Investment is the part of services sector which is facing a
tough competition these days. Both the public and private
sector banking institutions are the major players.
The scenario which they have brought up in the market
through their unpretentious hardworking and high quality work,
has made a cluster breaking entry in the era of competition.

2| Page
TRADITIONAL BANKING

Traditionally the relationship between bank and its

customer has been on a one-to-one level via the branch
network. This was put into operation with clearing and design
making responsibilities at the individual branch level. The head
office had the responsibility for the overall clearing network,
the size of the branch network and the training of staff in the
branch network. The branch monitored the organizations
performance and set the decision making parameters, but the
information available to both branch and their customers was
limited to one geographical location.

1| Page
Decisio
Clearin
Bank Branch
Customer
Central clearing
g
n

1| Page
 FIGURE:-2 Traditional banking structure

RELATIONSHIP BANKING

The modern bank cannot rely on its branch network alone.

Customers are now demanding new, more convenient, delivery
systems. And services such as internet banking have a dual
role for the customer thus increasing the productivity of this
sector. They provide traditional banking service, but
additionally offer much greater access to information on their
account and on the banks many other services. To do this
banking has to create information layers, which can be
accessed both by bank staff as well as by the customers
themselves.

The use of interactive electronic links via the internet can

go a long way in providing the customers with greater deal of

3| Page
information about both their financial situation and about the
services offered by the bank.

FIGURE:-3-RELATIONSHIP BANKING

Customers

Telephone, Branch, Electronic Banking, etc.

Shared Information

3| Page
 Clearing systems Head Office Risk
Monitoring

CHAPTER:-2
DHANLAXMI
BANK
PROFILE

1| Page
COMPANY PROFILE:
Dhanalakshmi Bank Ltd was incorporated on 14th
November 1927 by a group of enterprising entrepreneurs at
Thrissur city, the "Cultural Capital of Kerala" with a capital
of Rs 11,000 and 7 employees. It became a Scheduled
Commercial Bank in the year 1977. It has now attained
national stature with 181 branches and 26 Extension
Counters spread over the states of Kerala, Tamil Nadu,
Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi
and West Bengal. in 2010 they were started the six branch
in Gujarat[Vadodata, Ahmedabad, Veraval, Palanpur,
Bardoli]

The Dhanalakshmi Bank has deployed technology widely as

an instrument for enhancing the quality of customer
service. It has introduced Centralized Banking Solution
(CBS) on the Flexcube Platform at all its branches for
extending anywhere/anytime/anyhow banking to its
clientele through multiple delivery channels. The bank has
set-up a state-of-the-art Data Centre in Bangalore, to keep
the networked system operational round the clock. A
Disaster Recovery Centre is also operational at Thrissur for
meeting various contingencies.

Vision & Mission

• To be amongst the top 5 Private Sector Banks
in terms of

➢ Bank’s Balance sheet size

➢ Profits
2| Page
 ➢ Branch network
➢ Asset Quality
• To be a large profitable “A” rated bank.

Achievements, Affiliations and

Milestones
Achievements
 Serviced business worth Rs. 8,212 crores as on 31 March
2009, comprising deposits worth Rs. 4,969 crores and
advances worth Rs. 3,245 crores.

 Earned a net profit of Rs. 57.45 crores for the financial

year ended 31st March 2009, with a capital adequacy
ratio of 14.44% during the same period.

 Put in place the Real Time Gross Settlement (RTGS) and

National Electronic Fund Transfer (NEFT) systems to
facilitate large value payments and settlements online in
real time, on a transaction-by-transaction basis.

 Set up NRI Boutiques (Relationship Centres) across nine

locations in Kerala and Tamil Nadu, with plans to open
specialized NRI outlets at potential locations with
emphasis on impeccable service levels.

 Dispensed Micro Credit among private and public banks in

Kerala, the Bank's outstanding under micro credit was Rs.
124.40 crores at the end of March 2009.

1| Page
  Attained ISO 9001-2000 certification for the Bank's
corporate office at Thrissur and industrial finance branch
at Kochi.

Affiliations

➢ Major Exchange Houses

 UAE Exchange Centre LLC
 Al Ahalia Money Exchange Bureau
 UAE Exchange Centre WLL

➢ Foreign Correspondent Banks

 Deutsche Bank Trust Company Americas
 Wachovia Bank NA - A Wells Fargo Company
 Commerzbank AG
 National Westminister Bank PLC

➢ Insurance Partner
 Bajaj Allianz
Milestones
1927 - Founded on 14 November, 1927, at Thrissur, Kerala

1975 - Set up the first branch outside the home state of

Kerala, at Chennai Mount Road

1977 - Designated as Scheduled Commercial Bank by the

Reserve Bank of India (RBI)

1980 - 100-strong branch network

1986 - Total business of Rs. 100 crores

1| Page
1996 - First public issue. Total business of Rs. 1,000 crores
2000 - Installed the first ATM

2002 - First Rights Issue

2002 - Platinum Jubilee year
2007 - Total business of Rs. 5,000 crores. 80th Anniversary
year

2008- Total business of Rs. 7,500 crores. Second Rights Issue

2009- Expanded branch network by 27 branches. Total

business of Rs. 10,000 crores
Financial Inclusion Initiatives
• Surpassed the RBI's benchmark of priority sector lending of
40% by advancing Rs. 1,148 crores as on 31 March 2009,
representing 53.48%.

• Surpassed RBI's recommended norm of 18% advances with

respect to agricultural credit by lending Rs. 557 crores as on
31 March 2009, representing 21.40%.

• Outstanding of Rs. 22.29 crores were under weaker sections,

representing 10.31% as against the RBI benchmark of 10%
as on 31 March 09.

• Outstanding in the area of micro credit totalled Rs. 125

crores as on 31 March 2009.

• The number of Savings Bank accounts maintained by Self

Help Groups (SHGs) numbered 20,740 while credit facilities
availed by SHGs stood at Rs. 35 crores as on 31 March 2009.

• Kissan Credit Cards for Rs. 5.06 crores were issued to 1,717
farmers as at the end of March 2009.

2| Page
• Opened 83,046 ‘no-frills’ accounts with outstanding of Rs.
22.22 crores as on 31 March 09, as part of financial inclusion
initiatives.

BUSINESS MIX OF DHANLAXMI BANK:-

Graph:-2.1 BUSINESS MIX OF DHANLAXMI BANK

Graph:-2.2 GEOGRAPHICAL BUSINESS MIX OF DHANLAXMI BANK

STRATEGICAL ASPECTS OF DHAN BANK:-

1. MARCH TOWARDS PAN INDIA EXPANSION:-

Dhanalakshmi Bank Ltd. (Dhanbank) has vision to be one of the

top 5 Indian private banks in the near future. To attain this
goal. Dhanbank has huge expansion plans to tap the potential
lying in other places outside Kerala. Dhanbank is expected to
open up 66 new branches and 389 new ATMs in the current
financial year. Dhanbank will convert its 26 extension counters
into full fledge branches in the current year, taking the total
no. of branches to 273 in the current year. Dhanbank is
expected to have 400 branches & 600 ATMs by the end of
FY2010-11.

1| Page
 GRAPH:-2.3 NETWORKING ANALYSIS
➢ Dhanbank has got a contract with a German company,
AGS, to handle its new ATM opening based on “only opex
no capex” model. As per this model, AGS would be
responsible for setting up new ATMs at strategic locations
and to maintain the ATMs. Cost incurred to Dhanbank
would be on number of transactions

➢ Dhanbank has 65% of its branches in state of Kerala. Out

of the new branches few would be located in rural areas of
Kerala and other would be mainly in Maharashtra &
Gujarat & Northern areas, as these areas has the highest
portion of deposits and loan off-take, from the total
business of Indian banks. Opening of new rural branches
would help Dhanbank to tap the huge potential lying in
the rural areas.

➢ Dhanbank is expecting to add 900-1000 accounts daily

after achieving the 273 branches target. This would help
to bring in more CASA deposits.

2. Brand Transformation:

➢ Dhanbank is in process to strengthen its brand in the

market. Ogilvy & Mather and Fitch have been appointed
as marketing consultants; this would help the bank to
reach to the new customers and to strengthen its brand
image in the market.

➢ Dhanbank has appointed Ogilvy & Mather as its agency

for the banking business to chart out a new brand
proposition and communication strategy. O&M, India’s
leading communication agency will help the Bank to
design and implement a comprehensive go-to market
communication approach. The agency will help the Bank
in its endeavor to create an entirely new customer

3| Page
 experience and to incorporate a young and contemporary
look across all customer touch-points.

3. Margins heading north:

Improvement in margins might be seen in the near future on
the basis of:

➢ Increase in CASA: Increase in number of branches is

expected to bring in 900 to 1000 accounts daily; this
would help to grow the CASA deposits. Dhanbank targets
to achieve CASA of 30% in medium span of time. As
CASA deposits are low cost deposits this would lead to
lower cost of deposits.

GRAPH:-2.4- INCREASE IN CASA

➢ Increase in NRI deposits: At present out of the total

deposits, the NRI deposits are approx. 6%. Dhanbank
has its major presence in Kerala and this area has huge
potential of NRI deposits. Dhanbank plans to tap as
much NRI deposits as possible, as these are low cost
deposits. A special NRI deposit handling team is setup to
tap this category of deposits

.
➢ Yield on Investments: In FY2008-09, yield on
investments went down as Dhanbank had major holding
in T-bills. Now Dhanbank plans to invest in the
government securities, this is expected to increase the

3| Page
 yield on investments, as the govt. securities yield better
returns than T-bills.
➢ Repricing of deposits to decrease cost of deposits: In
the present low interest rate scenario, Dhanbank is to
benefit from the repricing of deposits. This will decrease
the cost. Repricing could continue benefiting bank up to
1 year.

4. Venture into new business segments:

Fee & Commission based business would be the focus of

Dhanbank. This category of income leads to higher ROE & EPS
as it does not require capital expenditure and it leads to
regular stream of income. Dhanbank has taken various
initiatives to increase its other income sources. With the
increasing number of branches and deeper reach to retail
clients would be a catalyst for the income from Fee &
commission based income.

➢ Insurance distribution: Dhanbank has got into a tie up

with Bajaj Allianz for its Life Insurance & general insurance
product distribution. A special team of 300 marketing
officers is set-up for insurance distribution business.

➢ Mutual fund distribution: As part of their wealth

management, Dhanbank intends to distribute leading
mutual fund schemes. Professional would be joining for
MF product distribution and the bank would have a similar
strategy as in case of its insurance distribution business.

➢ Other Products: Dhanbank is expected to come up with

new products like gold coins, Travelers cheques, and forex
services. The bank plans to offer 3in1 account whereby
the customer would be provided with the routine banking
relationship (Savings A/C) along with Demat A/C and a
trading platform.
➢ AMC: Dhanbank is planning to get into Asset
Management business. It is planning to enter the asset
management business by buying into an existing fund,

2| Page
 the investment is likely to be around Rs15-20 Cr. to buy
stake in an existing AMC.

➢ Venture Capital: The bank is also looking at setting up a

wholly-owned venture capital firm soon. Bank would put in
about Rs.2000 Cr. in VC to invest in new start ups. The
expected annual return from VC business is approx. 25%.

PRODUCT SUITE:-

Following chart shows the various products and services

offered by DHAN LAXMI BANK-

2| Page
 Figure:-2- PRODUCT SUITE OF DHAN BANK

PRODUCTS AND SERVICES OF DHAN BANK:-

1.Personal Banking
• Accounts:- Saving Account, Current Account, Term
Deposit
• Loans:-Personal Loans, Home Loans, Auto Loans, Other
Loans
• Depository Services
• Locker Facilities
• Forex Services:- Foreign Currency Cash, Cheque
Deposits, Foreign Currency DD, Remittances.
2.Corporate Bankng
• Cash Management (CMS)
• Credit:- Industrial Advance, Trade Advance, Import
Export, Agriculture Assistance
• Salary Account
• Forex & Trade:-Forex Services, Export Services, Import
Services

3.NRI Banking
• Accounts & Deposits:- NRE Account, NRO Account,
Recurring & TD, FCNRY FD, Returning NRIs
• Money Transfer:-Draft Drawing, Rupee Drawing, Money
Transfer, Overseas Corresp.
• NRI Home Loan
• Investments:-Portfolio, Repatriation, Non-repatriation,
Immovable properties.

4. Micro & Agri Banking

• Dhanam Kissan Vahana
• Kissan Card

2| Page
 • Agri gold Loan
• Micro Credit - MFI
• Micro Credit - SHGs

5. Financial Planning
TABLE:2.1-COMPARISON OF RETAIL PRODUCT
FEATURES:-

1| Page
S. FEATU ICICI HDFC AXIS YES DHANLA
No. RE BANK BANK BANK BANK XMI
1 AVERAGE VARY AS VARY AS VARY AS VARY VARY AS
MONTHL PER PER PER AS PER PER
Y PRODUCT PRODUCT PRODUCT PRODU PRODUCT
BALANCE CT

2 DEBIT FREE FREE FREE FREE FREE

CARD
FACILITY

3 MOBILE CHARGEA CHARGEA CHARGEA CHARG FREE

BANKING BLE BLE BLE EABLE

4 RTGS/NE ON ON ON ON BOTH 5-5

FT CHARGE CHARGE CHARGE CHARG FREE PER
BASIS BASIS BASIS E BASIS MONTH

5 COLLECTI Rs. 50 PER Rs. 50 Rs. 50 Rs. 50 FREE 5

ON OF CHEQUE PER PER PER OUTSTATIO
OUTSTAT CHEQUE CHEQUE CHEQU N CHEQUES
ION E PER MONTH
CHEQUES

6 DERMAN AS PER AS PER AS PER AS PER 5 D.D. FREE

D DRAFT RBI RBI RBI RBI PER MONTH
NORMS NORMS NORMS NORMS

7 INTERNE FREE FREE FREE FREE FREE

T
BANKING

8 SALARY YES YES YES YES YES

ACCOUNT

9 SWEEP IN IN SOME NO NO NO YES,FREE

AND ACCOUNT
AWEEP S
OUT
FACILITY

10 STOP CHARGEA CHARGEA CHARGEA CHARG FREE TO

PAYMENT BLE BLE BLE EABLE SOME
EXTENT

11 PAY CHARGEA CHARGEA CHARGEA CHARG 5-25 P. O

ORDERS BLE AS BLE AS BLE AS EABLE .FREE PER
PER PER PER AS PER MONTH
NORMS NORMS NORMS NORMS
3| Page
TABLE:-2.2-COMPARISON OF SERVICES OFEERED

1| Page
S.N FEATURE ICICI HDFC AXIS YES DHANLAX
o. BANK BANK BANK BANK MI
1 MUTUAL YES,ICICI YES,HDF YES YES THIRD PARTY
FUND DYNAMIC, C TOP PRODUCTS
INVESTMEN ICICI 200
T GROWTH
etc.

2 GENERAL ICICI YES YES YES THIRD PARTY

INSURANCE LOMBARD PRODUCTS

3 LIFE ICICI LIFE YES YES YES THIRD PARTY

INSURANCE INSURANC PRODUCTS
E

4 NRI YES YES YES YES YES

BANKING

5 AGRI YES YES YES YES ONLY IN

BANKING SOUTH INDIA

6 HOME YES YES YES YES ONLY IN

LOANS SOUTH INDIA

7 CORPORAT YES YES YES YES YES

E LOANS

8 OTHER YES YES YES YES ONLY IN

CREDIT SOUTH INDIA
SERVICES

9 CUSTOMER YES YES YES YES YES

CARE
DEPARTME
NT

10 CREDIT YES YES YES YES ONLY IN

CARD SOUTH INDIA
FACILITY

11 ONLINE YES YES YES YES YES, IN

TRADING ALLIANCE
WITH
DESTIMONEY
SECURITIES
LTD.

12 INTERNET YES YES YES YES YES

BANKING
3| Page
1| Page
 COMPETITOR ANALYSIS AT A GLANCE:-

Table:- 2.3
S.No FEATURE ICICI HDFC AXIS YES DHANL
. BANK BANK BANK BANK AXMI

1 BRANCHES 1544 1725 905 150 273

2 ATM 4816 4232 3894 216 453

3 MARKET 100,180. 94,942. 52996.0 9762.04 1149.27

CAPITALIZA 00 22 4
TION

IN CRORE
Rs.

4 TOTAL 286,059. 139,011 156,748. 31,688. 6,795.02

ASSETS 77 .39 35 89

5 NET SALES 25,706.9 16,332. 11,638.0 2,369.7 534.57

IN CRORE 3 26 2 1
Rs.

(RECENT)

6 NET PROFIT 4024.98 2244.94 2514.53 477.74 23.30

IN CRORE
Rs.

(RECENT)

1| Page
MARKET SHARE ANALYSIS:-

Following table represents the current market

capitalization of different private commercial banks.
NAME OF COMPANY MARKET PERCENTAG
CAPITALIZATION E

ICICI In crore Rs. 31%

100,180.00

HDFC 94,942. 29%

22

AXIS 52,996.04 16%

YES 9,72.0 3%
4

DHANLAXMI 1149.27 .03%

OTHERS 63952.1 20.97%

6

TOTAL 322981. 100%

73

Table:-2.4

Graph:- 2.5-MARKET SHARE ANALYSIS

Depiction:-ICICI is the market player of private commercial

bank segment with highest market share of 31%. HDFC and
AXIS bank are market followers with 29% & 16% market share
respectively. Dhanlaxmi has very low market share in the
segment (=0.03%), rest 20% share is from others including
INDUSIND BANK, BANK OF RAJASTHAN, KOTAK MAHINDRA,
FEDERAL BANK, KARNATAKA BANK etc.

1| Page
 CHAPTER:-3

DATA
ANALYSIS AND
INTERPRETATIO
N
1| Page
 3.1 KIND OF BANKS OPTED BY CUSTOMERS ON THE

KIND OF BANK NO. OF CUSTOMERS PERCENTAGE

PUBLIC SECTOR BANKS 35 35%

PRIVATE BANKS 55 55%

OTHERS 10 10%

BASIS OF THEIR NEEDS:-

Table-3.1

SAMPLE SIZE:-100

Graph:-3.1

Depiction:-The survey depicts that around 55% customers

have opted public sector banks, while 35% are the customers
of private banks. Rest 10% is from others including foreign
banks and cooperative banks customers.

Interpretation:- A large no. of customers still don’t have faith

in private banks, they still avail public sector nationalized
banks for their banking requirements. Private sector banks can
target these customers with better strategies.

1| Page
3.2 CRITERIA OF SELECTING THE BANK FOR BANKING
REQUIREMENTS:-
SELECTION NO. OF PERCENTA
CRITERIA RESPONDENTS GE

REFERENCE 19 19%

PROXIMITY 30 30%

BRAND IMAGE 08 08%

PRODUCTS AND 22 22%

SERVICES

NETWORKING 21 21%

Table:-3.2

Graph:-3.2

Depiction:-As per survey about 30% respondents selected

their bank on the basis of proximity of branch. Effective
networking is the reason of selecting the bank for 21%
customers, while 19% and 22% customers choosed their bank
due to reference of known persons and products and services
of the bank respectively. Rest 8% customers considered brand
image of the bank while choosing it.

Interpretation:-Survey depicts that proximity and products

and services are the major factors which customer keeps in
mind before selecting the bank. Some of the respondents
selected the bank because it was referred to them by their
relatives/friends etc.

3.3 SATISFACTION LEVEL OF PUBLIC SECTOR BANK

CUSTOMERS:-
SATISFACTION LEVEL NO. OF %

1| Page
 RESPONDENTS

VERY SATISFIED 06 17%

SOMEWHAT SATISFIED 20 60%

SOMEWHAT 06 19%
DISSATISFIED

VERY DISSATISFIED 03 4%

Table:-3.3

Graph:-3.3

Depiction:-Satisfaction level of public sector bank customers

is about 75% as per survey.

Interpretation: - 25% respondents from public sector banks

were not satisfied with the services. Some of the reasons for
this dissatisfaction are as below:-

• Poor customer relationship management

• Complex procedures.

3.4 SATISFACTION LEVEL OF PRIVATE SECTOR BANK

CUSTOMERS:-
SATISFACTION LEVEL NO. OF %
RESPONDENTS

VERY SATISFIED 24 47%

SOMEWHAT SATISFIED 20 39%

SOMEWHAT 6 12%
DISSATISFIED

VERY DISSATISFIED 5 2%

Table:-3.4

1| Page
Graph:-3.4

Depiction:- Survey depicts that 47% respondents from private

bank customers were very satisfied with the bank while around
40% were somewhat satisfied.

Interpretation:- As per survey satisfaction level is higher in

private bank customers as compared to customers from public
sector bank. following are the reasons of dissatisfaction of
private bank customers:-

• Process delay.
• Service quality.
• Hidden charges.
• Behavior of the employees at branch.

3.5 RELATION BETWEEN SELECTION CRITERIA AND

SATISFACTION LEVEL:-
SELECTION NO. OF VERY SATISFIED PERCENTAG
CRITERIA RESPONDEN RESPONDENTS E
TS

REFERENCE 19 3 16%
PROXIMITY 30 6 20%
BRAND IMAGE 8 4 50%
PRODUCTS 22 12 54%
AND
SERVICES

NETWORKING 21 5 23%
Table:-3.5

Graph:-3.5

1| Page
Depiction:-Survey depicts that those respondents who
choosed their bank on the basis products and services, 54%
out of them were very satisfied with their bank. Respondents
who choosed their bank on the basis of its brand image, 50%
out of them were very satisfied.

Interpretation:-As per survey results there is a relation

between selection criteria and satisfaction level. A private
commercial bank has to be strong in terms of following factors
for 100% customer satisfaction:-

1. Brand image 2. Product differentiation 3.

Network efficiency

3.6 DOES YOUR BANK GIVES YOU REGULAR UPDATES

ABOUT NEW PRODUCT AND SERVICES
REGULAR UPDATES NO. OF PERCENTAGE
RESPONDENTS

YES 64 64%

NO 17 17%

SOMETIMES 19 19%

Table:-3.6

Graph:-3.6

Depiction:- As per survey 65% respondents say their bank

give them regular updates on new products and services
launched, while about 20% say their bank does not give them
regular updates.

2| Page
Interpretation:-Regularly awaring the customer about new
products and services or any change in existing one is an
effective tool of service positioning.

3.7 MOBILE BANKING AND INTERNET BANKING

SERVICES: PATTERN OF USAGE
USE OF YES NO SOMETIMES
MODERN WAY
OF BANKING

NO. OF 37 46 17
RESPONDENTS

Table:-3.7

Graph:-3.7

Depiction:- Survey depicts that only 35% respondents are

using mobile banking and internet banking service regularly,
whereas around 50% customers are still not using these
services.

Interpretation:- The reason behind lacking no. of mobile and

e-banking users are :

• Hidden charges
• Unawareness.
• Complex procedures, etc

3.8 AWARENESS ABOUT DHANLAXMI BANK IN JAIPUR:-

AWARENESS LEVEL NO. OF PERCENTAGE

1| Page
 RESPONDENTS

YES 37 37

NO 54 54

SOMEWHAT 9 9

Table:-3.8

Graph:-3.8

Depiction:- As per survey 54% respondents said that they

don’t know about dhanlaxmi bank . 37% respondents said that
they know about dhanlaxmi bank through their personal
sources.

Interpretation:- Awareness level of Dhanlaxmi Bank is not so

high in Jaipur city. Advertisement campaign has not started
that’s why people know about it through their personal
sources.

1| Page
3.9 RISK TAKING ABILITY WITH RESPECT TO DIFFERENT

RISK HIGH MODERATE LOW TOTAL

TAKING

ABILIT
Y

INCOME

GROUP

VERY HIGH 6 4 2 12

HIGH 8 22 2 32

MIDDLE 6 32 18 56

INCOME LEVELS:-

Table:-3.9

Graph:-3.9

Depiction:- Survey depicts that :-

• 50% respondents from very high income group can take

high risk while investing, whereas around 35%
respondents want to invest in those options which are less
risky. Around 15% respondents from very this group
wants to avoid risk while investing their money’

• 65%customers from high income group are interested in

investing those options having moderate risk whereas
20% can go for high risk categorized investment options;
rest 15% wants to avoid the risk.

1| Page
 • 55% customers from middle income group can take
moderate risk. Around 30% respondents want to avoid the
risk of investment, rest 10% can go for high risky
investment options.

Interpretation:-

• As we go from very high income group to middle income

group risk taking ability decreases.

• Customers from middle income group want to avoid

investment in ULIPS, equity market and other equity
market linked investment options.

• Customers from very high income can take high risk while
investing their money as compared to respondents from
other income groups.

3.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT

AT DIFFERENT LEVELS OF AGE:-
RISK TAKING ABILITY <40 YEARS >40 YEARS

HIGH 15 5

MODERATE 26 31

1| Page
AVOIDER 8 15

Table:-3.10

Graph:-3.10

Depiction:- Survey depicts that:

• 31% respondents from, 40 yrs age group wants to invest

money in high risky investment options. 50% wants to be
in moderate risk category.
• Only 10% respondents from >40 age group want to put
their money in high risk categorized options whereas
around 30% want to avoid risk.

Interpretation:- There is a relationship between risk taking

ability and age of the respondent. Risk taking ability decreases
with increasing age.

SUMMARY OF FINDINGS AND SUGGESTIONS:-

FINDINGS:-

➢ As per the survey conducted, it is to be noticed a good

sector of the people prefer to be customers of
nationalized banks. This result can be very well explained
by the fact that nationalized banks are acquainted with
the Government and that ups and downs in business will
not affect the existence of the bank. Also the RBI too has
good control over the working of these banks and there
for the customers feel a sense of security in investing in
these banks. However it is also seen that a good
percentage of people also opt for private banks such as
ICICI, HDFC, AXIS bearing in mind the amount of
experience they posses in the field of banking.

1| Page
 ➢ Survey results show that customers from private sector
banks are more satisfied as compared to customers from
public sector banks. it was found that there is a direct
relationship between brand image/product differentiation
and satisfaction of the customer.

➢ Customer demographic plays important role while

preparing penetration strategies.

➢ Dhanlaxmi has the retail products with unique features

which others don’t have, but some of the services it is
selling in alliance with third parties. Product line of Dhan
Bank is not as diversified in Jaipur as their competitors
have.

➢ Market share of Dhan Bank is not so high as compared to

ICICI,HDFC,AXIS and YES BANK.

SUGGESTIONS:-

➢ The bank should introduce new delivery channels via

opening more branches and ATMs in Jaipur to improve
network efficiency.
.
➢ Effective advertisement campaign can help the bank to
increase business in Jaipur. TV commercials, Hoardings
posters can be some of the mediums to increase the
awareness of Bank in Jaipur.

3| Page
 ➢ Bank should launch the whole product line in Jaipur to
emerge its position in competition.

➢ Bank should target 5 km area around the branch office

because survey depicts that most of the customers
selected their bank on the basis of proximity.

➢ Bank should constantly innovate their products as per

customer requirements.

➢ Dhanlaxmi Bank should maintain the consistency in

service quality for total customer satisfaction.

SWOT ANALYSIS:

STRENGHTS

➢ Serving customers since 1927 with loyalty

and total dedication to customer services.

➢ A trusted Brand in South India.

3| Page
 ➢ Best F.D. rates among scheduled private
commercial banks.

➢ Empowering the investors by giving them

different schemes like free mobile and
internet banking.

➢ Centralized “Flex cube” system for any

branch banking.

WEAKNESS:-

➢ Less number of branches as compared to

competitors.

➢ Less no. of ATMs.

➢ Lack of awareness of the brand in Jaipur.

➢ Only branch in Rajasthan.

OPPORTUNITIES:-

3| Page
 ➢ Special permission from R.B.I. for unlimited
free transactions from other bank’s ATM in
Jaipur.

➢ Products are with excellent features which

can help them to build strong business in
Jaipur.

➢ Effective Fixed Deposit rates can help them

to increase business in Jaipur.

➢ Growing Indian banking sector.

➢ People are becoming more service oriented

THREATS:-

➢ Nationalized banks are growing fast.

➢ Competitors have diversified product range.

➢ Customers want to go with a known brand.

1| Page
BIBLIOGRAPHY:-

WEBSITES:-

 www.dhanbank.com
 www.icicibank.com
 www.axisbank.com
 www.yesbank.com
 www.moneycontroll.com
 www.finance.india.mart.com
 www.banknetindia.com
 www.rbi.org
 www.moneycontrol.com
 www.google.com

BOOKS, JOURNALS:-

 COMPANY BROCHURES
 ANNUAL REPORTES OF DHAN BANK
 BUSINESS ECONOMICS JOURNAL
 KOTHARI, C. R. ,RESEARCH METHODOLOGY
 CHAUDHARY,C.M., RESEARCH METHODOLOGY

1| Page
 ANNEXURE:QUESTIONNAIR
E

1. NAME- 2. AGE

3. E-MAIL- 4. CONTACT

5. EDUCATION 6. MONTHLY INCOME

7. PROFESSION-

A) SALARIED B) SELF EMPLOYED

(………………………………………..)

C) OTHERS

Q. 1 WHICH BANK(S) YOU ARE USING FOR YOUR CURRENT BANKING

REQUIREMENTS?

…………………………………………………………………………………………………
…………………………

Q. 2 WHICH BANKING PRODUCTS YOU ARE AVAILING?

A) SAVING ACCOUNT B) CURRENT ACCOUNT C) LOCKER

D) FIXED DEPOSIT E) CREDIT

Q.3 YOU CHOOSED YOUR BANK ON THE BASIS OF-

A) PROXIMITY B) NETWORKING C)
PRODUCTS AND SERVICES

D) REFRENCES E) TIMING F)
BRAND IMAGE

Q.4 DO YOU USE THE MODERN AND SMART WAY OF BANKING?

A) YES B) NO C)
SOMETIMES

Q.5 DOES YOUR BANK GIVES YOU REGULAR UPDATES FOR NEW
PRODUCTS AND SERVICES?

3| Page
A) YES B) SOMETIMES C) NO
D) NEVER

Q. 6 HOW MUCH YOU ARE SATISFIED WITH THE SERVICES, YOUR BANK IS
PROVIDING TO YOU?

A) VERY SATISFIED B)
SOMEWHAT SATISFIED C)SOMEWHAT DISSATISFIED
D) VERY DISSATISFIED

Q. 7 WOULD YOU LIKE TO GET SOME ADDITIONAL BENEFITS FROM YOUR

BANK?

A) YES B)
NO

IF YES WHAT KIND

OF? ..............................................................................................................
.....

Q. 8 WHAT KIND OF INVESMENT YOU ARE INTO FOR SECURING YOUR

FUTURE?

A) FIXED DEPOSIT B) INSURANCE C) MUTUAL

FUNDS

D) SHARES/BONDS E) REAL ESTATES F) OTHERS

Q. 9 WHAT IS THE PURPOSE OF YOUR INVESTMENT

A) PROFITABILITY B) LIQUIDITY C) SECURITY

D) TAX BENIFIT

Q. 10 WHAT IS YOUR PREFERENCE FOR INVESTMENT, STARTING FROM 1ST

RANK TO SUBSEQUENT RANKINGS?

MUTUAL FUNDS (….) INSURANCE (….) GOLD

(….)

REAL ESTATE (….) SHARES/BONDS (….) FIXED DEPOSITS

(….)

Q.11 HOW MUCH YOU SPEND YEARLY TOWARDS INVESTMENT ACTIVITIES?

2| Page
A) LESS THAN 1 LAC B) B/W 1-
2LACS

C) B/W 2-3 LACS D) MORE THAN

3 LACS

Q. 12 DO THE INSURANCE PLAN YOU ARE INTO COVERING YOUR RISK

PROPERLY?

A) NO B) YES

IF NO / YES,
HOW? .........................................................................................................

Q. 13 HAVE YOU EVER HEARD ABOUT DHANLAXMI BANK?

A) YES B) NO

IF YES, HOW DID YOU COME TO KNOW ABOUT THE BANK?

…………………………………………………………………………………………………
…………………………………………

1| Page