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PRESENTED BY:-GROUP E

MARKETING IN

BANKING SECTOR

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BANKING SECTOR IN INDIA

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Commercial banks are the financial institution which acts as a financialintermediary which collects credit from lenders in the form of deposits andlends in the form of loans.

COMMERCIAL BANKS

1) Makes loans to individuals and organizations.

2)Accepts demand deposits and time deposits.

3)Provides services as documentary collections, international banking,

trade financing.

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Primary Functions

Secondary Functions

Functions of

Commercial

Banks

FU CTIONS O F COMMERCIAL

BANKS

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Accepting depositsG ranting loans and advances

Issuing letters of credit, travellers cheques.Undertaking safe custody of valuables, important documents, and securities

by providing safe deposit vaults or lockers;Providing customers with facilities of foreign exchange.

Transferring money from one place to another; and from one branch to another branch of the bank.

SECONDARY FU NCTIONS

PRIMARY FU NCTIONS

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Collecting and supplying business information.

Issuing demand drafts and pay orders.

Providing reports on the credit worthiness of customers

Contd«..

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ST A TE B ANK OF IND IA

i Largest nationalized commercial bank in India.

i In terms of assets, number of branches, deposits, profits and workforce.

i Headquarters in Mumbai, India and employs about 205,896 people.

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7

P·s

Product

Price

Place

PromotionPeople

Physical Environm

ent

Process

7 P·s O f

M ARKET ING

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PRODU C TS

Investment banking

Commercial Banking

R etail Banking

Private Banking

Asset Management

Pensions

Mortgag es

Credit Cards

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INVESTMENT BANKING

An investment bank is a f inanc ial institutio n that assists corpor atio ns and g over nm ents in r aising ca pital

by underwriti ng and ac ting a s the agent in the issu anc e of securities.

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RETAIL BANKINGR etail banking ref ers to bank ing in whi ch bank ing institutio ns exe cute tr ansactio ns dire ctly with consumers, r ather than c orpor atio ns or other

bank s. Servi ces off ere d incl ude: savings and c heck ing acc ounts, mort gag es,

perso nal l oans, de bit car ds, credit car ds, and so f orth .

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State Bank of India offers a wide range of services in the Personal Banking, SBI offers the products which are designed with flexibility to suit customer ·s personal requirements. Enjoy 24 hour facility through SBI A TMs -growing speedily it has crossed the 21000 mark.

It includes SBI Term Deposits , SBI Loan For Pensioners, SBI R ecurring Deposits, Loan Against Mortgage O f Property, SBI Housing Loan, Loan Against Shares & D ebentures, SBI Car Loan, R ent Plus Scheme, SBI Educational Loan, Medi-Plus Scheme, SBI Personal Loan, R ates O f Interest

SBI now provides your Account Balance and Transaction details over phone round -the -clock. Information on deposits & loan schemes and services also available

PERSONAL BANKING

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COMMERCIAL BANKING

I t is a ty pe of f inanc ial inter mediar y and a ty pe of bank . Comm er cial bank ing is also know n a s business

banking . I t is a bank that provi des check ing acc ounts, savings acc ounts, and m oney ma r k et acc ounts and that

acc epts time deposits.

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SBI is a one shop providing financial products / services of a wide range for large , medium and small customers both domestic and international. Assistance extended both as Fund based and Non -Fund based facilities to Corporates , Partnership firms , Proprietary concerns.

Working Capital finance extended to all segments of industries and services sector such as I T

CORPORATE BANKING

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PRIVATE BANKING

Pr ivate banking is a ter m f or bank ing , invest ment and other f inanc ialservi ces provi ded by bank s to private ind ividuals investi ng siz abl e assets.

The ter m " private" ref ers to the custo mer servi ce being rendere d on a m ore

perso nal ba sis than in ma ss-ma r k et ret ail bank ing , usu ally via d edicated bank ad visers.

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ASSETMANAGEMENT

A sset management is the prof essio nalmanag ement of various securities and a ssets, to

meet spe cif ied invest ment goals f or the benef it of the investors. I nvestors may b e institutio ns or

private investors.

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State Bank of India Caters to the needs of agriculturists and landless agricultural labourers through a network of 87 50 rural and semi-urban branches.

SBI branches covered a whole gamut of agricultural activities like crop production , horticulture , plantation crops, farm mechanization, land development and reclamation, digging of wells, tube wells and irrigation projects, forestry, construction of cold storages and godowns, processing of agri-products, finance to agri-input dealers, allied activities like dairy ,

fisheries, poultry, sheep -goat, piggery and rearing of silk worms.SBI set forth to continue growth in the rural and agri development and become the ¶Banker to Every Indian· .

AGRIC U LT U RE / R U RAL

BANKING

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SBI have products and services customised with a significant global footprint to suit customer ·s banking needs.

It includes opening of NR I account, type of deposit accounts, NR I home and car loan schemes etc.

NRI SERVICES

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International banking services of State Bank of India are delivered for the benefit of its Indian customers, non -resident Indians, foreign entities and banks through a network of 163 offices / branches in 33 countries as

on 31st July 2011, spread over all time zones.It involves trade finance, correspondent banking, merchant banking, project

export finance, exporter gold card, treasury, offshore banking etc.

INTERNATIONAL

BANKING

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It includes :DOMEST IC TRE ASURY BROK ING SERV ICESREV ISED SERV ICE CH ARGESA TM SERV ICESINTERNET B ANK INGE-P A Y E-R AILRBIEFTS AFE DEPOS I T LOCKER MICR CODESFORE IGN IN WARD REM I TT ANCES

OTHER SERVICES

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The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks

already networked, today it offers the largest banking network to the Indian customer. The Bank is also in the process of providing complete payment solution to its clientele with its over 21000 A TMs, and other electronic channels such as Internet banking, debit cards, mobile banking, etc.With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries in India ² SBI Capital Markets, SBICAP Securities, SBI DFH I, SBI Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking scenario.

PLACE

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PROMOTIONSTRATEGIES

SBI

Advertisement PersonalCommunication Sales Promotion Publicity &

Public RelationsInstructional

Material

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Personalcommunicat

ion

Customer ServiceWord of Mouth

Advertisements

Broadcast

PrintInternetOutdoor D irect Mail

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Sales Promotion

G iftsD iscounts

Publicity

Press ConferenceSpecial E ventsSponsorship

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Instructional

Material

WebsiteManual

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BPLR (State Bank Advance R ate) revised upwards by 50 bps from 14.25% p.a. to 14.7 5% p.a. w.e.f 13.08.2011.Base R ate revised upwards by 50 bps from 9.50% p.a. to 10.00% p.a. w.e.f 13.08.2011.Domestic deposits ( below R s one crore) interest rates revised w.e.f. 13.08.2011.Domestic deposits (R s one crore & above) interest rates revised w.e.f. 07.11.2011.Saving bank deposit interest rates is 4.00% p.a. ( w.e.f. 03.05.2011).

%RATES

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DOMESTIC TERMDEPOSITS

Tenors Existing w.e.f. 11.07 .2011 R evised w.e.f.13.08.2011

7 days to 90 days 7 .00 7 days to 90 days 7 .00

91 days to 17 9 days

7 .25

91 days to 17 9 days

7 .25

180 days to 240 days

6.50

180 days to 240 days

7 .00

241 days to less than 1 year

7 .7 5

241 days to less than 1 year

7 .7 5

1 year to less than 2 years 9.25 1 year to less than 2 years 9.25

2 years to less than 3 years 9.25 2 years to less than 3 years 9.25

3 years to less than 5 years 9.25 3 years to less than 5 years 9.25

5 years and up to 10 years 9.25 5 years and up to 10 years 9.25

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Tenors Existing w.e.f. 21.10.2011 R evised w.e.f.07 .11.2011

7 days to 14 days8.50

7 days to 14 days8.50

15 days to 30 days8.50

15 days to 30 days8.50

31 days to 45days8.50

31 days to 45 days8.50

46 days to 90 days8.50

46 days to 90 days8.50

91 days to 17 9 days8.50

91 days to 180 days

8.50180 days to 240 days

8.00 181 days to 240 days8.00

241 days to 27 0 days8.00

241 days to 27 0 days8.00

27 1 days to less than 1 year

8.25

27 1 days to less than 1 year

8.25

1 year to less than 2 years

9.00

1 year to less than 2 years

9.00

2 years and above8.7 5

2 years and above8.7 5

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Sr. No. Name Designation U nder Section of SBI Act 1955

1Shri Pratip Chaudhuri Chairman 19 ( a)

2 Shri Hemant G . Contractor Managing D irector 19 ( b)

3 Shri D iwakar Gupta Managing D irector 19 ( b)

4 Shri A. K rishna K umar Managing D irector 19 ( b)

5 Shri D ileep C. Choksi D irector 19 ( c)

6 Shri S. V enkatachalam D irector 19 ( c)

7 Shri D . Sundaram D irector 19 ( c)

8 Shri Parthasarathy Iyengar D irector 19 ( c)

9 Shri Jyoti Bhushan Mohapatra Workmen Employee D irector 19 ( ca)

10 Shri G . D . Nadaf Officer Employee D irector 19 ( cb)

11 Shri R ashpal Malhotra D irector 19 ( d)

12 Shri D . K . Mittal D irector 19 ( e)

13 D r. Subir V . Gokarn D irector 19 ( f)

PEOPLEList of Directors on the Central Board of SBI

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TARGET MARKETS T wo Types:

y Current usersy Proposed users

1. R ural population

2. Markets of tier II and tier III cities with MFs

3. Working Class(H igh Net Individuals)

4. Increasing Middle Class

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COMPET I TORS

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STRENGTH

Brand NameWide D istribution Network Market LeaderD iversified PortfolioLow Transition CostHighest market Capitalization & Profits

WEAKNESS

H ierarchical management structureH ighest non performing

assets (NP As)

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OPPORTUN I TIES

Financial InclusionR ural IndiaMerger of associate banks with SBIG lobal expansionMicro FinanceBranch ExpansionStrong economic growth Corporate demand for credit

THRE A TS

Advent of MNC banksChanging interest rates and the changing policies of

RBICompetition in the retail segmentPrivate banks in the rural and semi-urban sector

Change in government policies

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