final presentation july

8/6/2019 Final Presentation July

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ANALYZING THE WORKING CAPITAL BANKING REQUIREMENTS

OF MANUFACTURING COMPANIES AND DESIGNING A

SOLUTION TO SUIT THEIR BANKING REQUIREMENTS

Presented by

Manju Khubchandani

Aishwarya Tiwari

Project Guide

Mr. Jateen Waghdhare


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Index

W H Y ?

Objective

Research Methodology

Data Analysis

Leads Generated

Recommendations

Experience - Learning Take Away


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W H Y ?

Dhanlaxmi Bank is new entrant in Pune.

Fragmented information on companies

Collation of database inclusive of turnover/contact persons etc is time

consuming and inefficient for SM/RM.

Cold Calling requires time for conversion and closure of deal.

Big SME market/market mapping


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Objective

Understanding the decision making process on selection of working capital

banker by a manufacturing companies.

Identification of the parameters behind selecting the working capital banker.

Identification of potential customers forDhanlaxmi Bank in SME sector in

Pune city.

Identification of the current banking structure and the banking problems

faced by manufacturing company.

Identification of services that would create a demand forDhanlaxmi Bank.


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Sample selection.

Database Creation.

Criteria to prepare the database .

Manufacturing companies.

Turnover of the company : more than 10 crores.

Area: MIDC Pimpri , Chinchwad, Bhosari.

Source for database.


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Exploratory Research

Customer

Banker

Questions

ParametersRequirements

Problems

Findings

Nationalized bank.

International presence.

Branches.

Documentation /Procedure.

Grievance handling.

Flexibility.


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Questionnaire Preparation.

Based on exploratory research.

Sample survey. Geographical Division.

Appointment.

Telephonic.

Area wise.


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Data Analysis Bank Selection Parameters

Respondents preferring a bank on the basis of:-

1. Reputation of the bank2. No of branches

3. Banks flexible in sufficing changing Needs of the client


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Data Analysis Current Bank Problems

- 45% customers facing some problem with their existing bankers

- Transaction related services a major problem with existing bankers


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Data Analysis Current Bank Satisfaction

None of the customers dissatisfied with their current bankers

28% of customers willing to add new bank for working capitalfacilities

More than 50% Customers neutral on satisfaction level , willing

to add new bank


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Data Analysis InterestRate Sensitivity

68% of the customers selecting neutral on satisfaction level for interest rate are

willing to add a new bank

68% of customers surveyed are in the interest range of 10-11.5%

Interestingly 2 customers in higher interest range willing to add a new bank (Out of 4as shown in graph)

Total responses - 44


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Data Analysis Customers / Suppliers

ExportSales (% Turnover)

3

12

10

4

3

48%

Imports (% Turnover)

5

4

11

3

10

40%

Responses - 33Responses -

32

- Most of the manufacturing setup source raw material from outside Pune

- 75% of the companies surveyed are into exports

- Overall customers satisfied with NFB facilities from their existing bankers


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Data Analysis NFB Cost Sensitivity

- Customers prefer keeping more margin than increasing commission

- 31% of customers surveyed are paying commission between 1.25% - 1.75%

- Clear opportunity to convert 7 customers (>2.25%) basis cost savings

Co

ission forNon Fund Based Fa

ility

11

6

13

5

7

2.25%

Responses - 42


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Data Analysis NFB Cost Sensitivity

- Ideally Higher the exports/imports higher the bargaining power for the customer

and lower the commission

- Opportunity to pitch lower commission and convert customer on cost savings


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LEADS GENRATED

-15 leads generated

- Turnover ranging from 10

Cr to 400 Cr

- 13 clients having either

export or import- All 15 using NFB facilities

- 13 clients disclosed their

current range of Cash

Credit interest rates

-15 leads generated

- Turnover ranging from 10

Cr to 400 Cr

- 13 clients having either

export or import- All 15 using NFB facilities

- 13 clients disclosed their

current range of Cash

Credit interest rates


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Recommendations

1. Customers prefer proximity toward bank branch. Dhanlaxmi Bank should

have a branch in MIDC area

2. Sales call should include banks pro-activeness to address clients changing

requirements in terms of products and limits

3. Sales call should include banks pro-activeness to address transaction related

convenience to the clients

4. Ample measures should be taken to promote the bank at the local level to

create awareness of the bank.


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Experience Learning Take Away

1. Making Cold Calls How to convince a stranger Confidence

2. Taking Appointments How to ensure an appointment Communication

Skills

3. Seeking specific Information How to mould your discussion in the right

direction Communication Skills

4. Speaking to receptionist for connecting the call to the right person

Persistence Softer skills

5. Overlapping and rescheduled appointments Always keep a backup option

Time Management

6. Travelling to the respondents in rains on a two wheeler Still be presentable

Hard work pays

7. Interacting with range of deranged people Patience Limit of patience

8. Visiting MIDC area Knowing MIDC area We know the roads now!!


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THANK YOU!!

final presentation july

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