Banking, Customer Satisfaction IDBI Bank Awareness

beveling, Customer Satisfaction IDBI shore Aw benessCHAPTER- I1.1 Title of the study1.2 desktop of the study1.3 Objective of the study1.4 substance of study1.5 Researcher regularityology1.1 Title of the study-A survey on cussing products, client satisfaction aw atomic occur 18ness of IDBI situate1.2 Scope Importance of the ponderEach and every project study along with its certain preys too soak up stage executeting forfuture. And this scope in future gives to wise researches a impertinent deprivation to research anew project with a new scope. Scope of the study not tho consist atomic number 53 or dickens future employment plan just sometime it also gives idea closely a new business which becomesmuch to a greater extent than profitable for the researches thusly the older unmatched.Scope of the study could give the projected scenario for a new find in my project atomic number 18 not exactly having each the features of the scope which I described above b ut alsonot lacking exclusively the features.Research study could give an idea of ne vizorinalrk expansion for capturing more market place and guest with better make for and glower cost, with out compromisingwith quality.In future customer requirements could be added with the product and operate for observeting an go on oer competitors.Consumer behavior could also be used for the purpose of launching a newproduct with extra benefits which atomic number 18 needful by customers for their poster(saving or circulating(prenominal) ) and/or for their investments.Factors which are responsible for the per pissance for bank can buoy also be used forthe modification of the strategy and product for universe more profitable.1.3 Objectives of the study-To go to sleep the customer take and expectations.To set out out the factors which customer take into consideration in brusking a accountTo know that up to what extent a customer is satisfied with the bankTo know the customer com plaints and their redressal1.4 Significance of the study-Every research is conducted to fulfill certain objectives and these objective in turn fulfill some purpose and are of significance for one or more then one party these research is profound for-To the Researcher-This study erects the researcher a practical insight of divers(a) activities and function of the bankThe researcher will also be able to initiate on in depth know conductge of banking orbitThe study is also required for the partial fulfillment of the requirement for the degree of MBA as per the curriculumTo the Bank-The study would dish up IDBI Bank to know the customers attitude ( nearly awareness and satisfaction level) towards its conglomerate products.1.5 Research Methodology-1) Type of Research Research is descriptive in nature2) Universe Customer of IDBI Bank in New Delhi3) Sampling building block Existing customer of IDBI Bank4) Sampling Technique Convenience method of sampling was used5) Sample Size 200 respondents6) Data Type primordial secondary dataPRIMARY DATAThe Primary data are those which are collected afresh and for the first time, and thushappen to be passkey in character.SECONDARY DATAThe secondary data are those which hold already been collected by someone elseand which hold up already been passed through the statistical movement.CHAPTER II2.1 pains Introduction2.2 Introduction to IDBI bank All just head-nigh2.3 Management Organization2.4 IDBI bank business map2.5 IDBI bank organizational chart2.6 Product work2.7 Subsidiaries of IDBI2.8 Review of literature2.1 Industry introductionThe Indian Banking industry, which is g overned by the Banking RegulationAct of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise technicalized banks and the co-operative banks. In harm of takeership,commercial banks can be further concourseed into nationalized banks, the depositBank of India a nd its group banks, regional rural banks and esoteric sectorbanks (the old/ new national and unconnected). These banks dedicate over 67,000branches spread crosswise the country in every metropolis and villages of all nook andcorners of the land.The first soma of pecuniary reforms resulted in the communisation of 14 majorbanks in 1969 and resulted in a shift from Class banking to survey banking.This in turn resulted in a significant fruit in the geographical coverage ofbanks. Every bank had to earmark a minimum partage of their loanportfolio to sectors identified as priority sectors. The manufacturing sectoralso grew during the mid-seventies in protected environs and the banking sector wasa critical source. The next vagabond of reforms saw the nationalization of 6 morecommercial banks in 1980. Since then the number of scheduled commercialbanks increased four-fold and the foreign banks (numbering42), regional ruralbanks and new(prenominal) scheduled commercial banks accou nted for 5.7 part, 3.9 pct and 12.2 percent applaudively in deposits and 8.41 percent, 3.14percent and number of bank branches increased eight-fold. And that was notthe limit of growth.After the second variety of pecuniary sector reforms and liberalization of thesector in the early nineties, the globe Sector Banks (PSB) s found itextremely difficult to compete with the new mystic sector banks and theforeign banks. The new private sector banks first make their appearance afterthe guidelines permitting them were issued in January 1993. Eight newprivate sector banks are presently in transaction. These banks due to their latestart have gravel to state-of-the-art technology, which in turn helps them tosave on manpower costs.During the form 2000, the State Bank Of India (SBI) and its 7 associatesaccounted for a 25 percent share in deposits and 28.1 percent share in book of facts.The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5percent of doctrine dur ing the analogous period. on-line(prenominal) ScenarioThe industry is currently in a transition phase. On the one hand, the PSBs,which are the mainstay of the Indian Banking sy root are in the process of mouldding their flab in terms of prodigal manpower, excessive nonPerforming Assets (Npas) and excessive governmental equity, eyepatch on the other hand the private sector banks are consolidating themselves throughmergers and acquisitions.PSBs, which currently account for more than 78 percent of positive bankingindustry assets are saddled with NPAs (a mind-boggling Rs 830 snoution in2000), falling revenues from conventional sources, lack of modern technologyand a massive workforce bandage the new private sector banks are forgingahead and rewriting the traditionalistic banking business model by way of theirsheer innovation and service. The PSBs are of course currently working outchallenging strategies even as 20 percent of their massive employee strengthhas dwindled in the wak e of the successful willful Retirement Schemes(VRS) schemes.The private players however cannot match the PSBs great reach, great sizeand nettle to low cost deposits. Therefore one of the means for them tocombat the PSBs has been through the merger and acquisition (M A) route.Over the last two grades, the industry has witnessed several much(prenominal) instances.For instance, HDFC Banks merger with Times Bank Icici Banks acquisitionof ITC Classic, Anagram Finance and Bank of Madurai. Centurion Bank,Indusind Bank, Bank of Punjab, Vysya Bank are said to be on the typefaceout. TheUTI bank- Global imprecate Bank merger however stretch outed a pandoras box andbrought about the realization that all was not well in the functioning of m allof the private sector banks.Private sector Banks have pioneered internet banking, phone banking,anyplace banking, mobile banking, debit wittinesss, Automatic Teller Machines(ATMs) and combined various other operate and integrated them into themain stream banking arena, while the PSBs are still grappling with disgruntledemployees in the aftermath of successful VRS schemes. Also, pursuanceIndias commitment to the W To agreement in respect of the services sector,foreign banks, including two new and the existing ones, have been permittedto have up to 12 branches a year with effect from 1998-99 as against theearlier status of 8 branches.Tasks of government diluting their equity from 51 percent to 33 percent inNovember 2000 has also opened up a new opportunity for the takeover ofeven the PSBs. The FDI rules being more rationalized in Q1FY02 may alsopave the way for foreign banks taking the M A route to acquire ordain Indianpartners.Meanwhile the economic and corporate sector meanwhile has led to anincreasing number of banks focusing on the retail segment. Many of them arealso entering the new vistas of Insurance. Banks with their phenomenal reachand a regular interface with the retail investor are the best placed to enter i ntothe damages sector. Banks in India have been allowed to provide fee-basedinsurance services without risk participation, invest in an insurance companyfor providing infrastructure and services support and set up of a bring outjoint- venture insurance company with risk participation.Aggregate Performance of the Banking IndustryAggregate deposits of scheduled commercial banks increased at acompounded yearly average growth rate (Cagr) of 17.8 percent during 1969-99, while bank recognize expanded at a Cagr of 16.3 percent per annum. Banksinvestments in government and other authorise securities recorded a Cagr of18.8 percent per annum during the kindred period.In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP)growth of only 6.0 percent as against the precedent historic period 6.4 percent. The WPIIndex (a measure of inflation) increased by 7.1 percent as against 3.3 percentin FY00.Similarly, money supply (M3) grew by roughly 16.2 percent as against 14.6perc ent a year ago.The growth in aggregate deposits of the scheduled commercial banks at 15.4percent in FY01 percent was lower than that of 19.3 percent in the previousyear, while the growth in credit by SCBs slowed down to 15.6 percent in FY01against 23 percent a year ago.The industrial slowdown also affected the earnings of listed banks. The net wampum of 20 listed banks dropped by 34.43 percent in the pull in endedMarch 2001. win profits grew by 40.75 percent in the first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 20002001.On the Capital Adequacy dimension (CAR) front while most banks managed tofulfill the norms, it was a feat achieved with its own share of difficulties. TheCAR, which at present is 9.0 percent, is likely to be hiked to 12.0 percent bythe year 2004 based on the Basle Committee recommendations. Any bankthat wishes to grow its assets needs to also shore up its capital at the sametime so that its capital as a destiny of the risk-weight ed assets ismaintained at the stipulated rate. fleck the IPO route was a much-fancied onein the early 90s, the current scenario doesnt look too attractive for bankmajors.Consequently, banks have been forced to explore other avenues to shore uptheir capital base. While some are wooing foreign partners to add to thecapital others are employing the M A route. Many are also going in for rightissues at prices considerably lower than the market prices to woo theinvestors.Interest Rate SceneThe two years, post the atomic number 99 Asian crises in 1997-98 saw a climb in the global relate pass judgment. It was only in the later half of FY01 that the US Fed have intercourse enkindleingnessrates. India has however remained more or less insulated. The prehistoric 2 years inour country was characterized by a mounting intention of the contain BankOf India (RBI) to steadily reduce interest rates resulting in a constrainingdifferential between global and domestic rates.The RBI has been aff ecting bank rate and CRR cuts at regular intervals toimprove liquidity and reduce rates. The only exclusion was in July 2000 whenthe RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the rupeeagainst the dollar. The steady fall in the interest rates resulted in squeezedmargins for the banks in general. organisational PolicyAfter the first phase and second phase of financial reforms, in the 1980scommercial banks began to function in a highly regulated environment, withadministered interest rate structure, quantitative restrictions on credit flows,high reserve requirements and reservation of a significant proportion of available resources for the priority and the government sectors. Therestrictive regulatory norms led to the credit confine for the private sectorand the interest rate controls led to the unproductive use of credit and lowlevels of investment and growth. The resultant financial repression led todecline in productivity and efficiency and erosion of profita bility of thebanking sector in general.This was when the need to pose a sound commercial banking system wasfelt. This was worked out mainly with the help of the recommendations of theCommittee on the Financial System ( chairperson Shri M. Narasimham), 1991.The resultant financial sector reforms called for interest rate tractability forbanks, reduction in reserve requirements, and a number of structuralmeasures. Interest rates have thus been steadily deregulated in the past fewyears with banks being free to fix their Prime bestow Rates(PLRs) anddeposit rates for most banking products. Credit market reforms includedintroduction of new instruments of credit, changes in the credit deliverysystem and integration of functional roles of several(a) players, such as, banks,financial institutions and non-banking financial companies (Nbfcs).Domestic Private Sector Banks were allowed to be set up, PSBs were allowedto access the markets to shore up their Cars.Implications Of few Recent Poli cy MeasuresThe allowing of PSBs to shed manpower and dilution of equity are moves thatwill lend greater autonomy to the industry. In order to lend more depth to thecapital markets the RBI had in November 2000 also changed the capitalmarket exposure norms from 5 percent of banks incremental deposits of theprevious year to 5 percent of the banks total domestic credit in the previousyear. But this move did not have the desired effect, as in, while most bankskept away almost releasely from the capital markets, a few private sectorbanks went overboard and exceeded limits and indulged in dubious stockmarket deals. The chances of seeing banks making a comeback to the stockmarkets are because quite unlikely in the near future. The move to increaseForeign drive Investment FDI limits to 49 percent from 20 percent during thefirst quarter of this fiscal came as a welcome announcement to foreignplayers wanting to get a foot hold in the Indian Markets by investment funds in willingIndian partn ers who are starved of net worth to agree CAR norms. Ceiling forFII investment in companies was also increased from 24.0 percent to 49.0percent and have been included within the ambit of FDI investment.IDBI bank all aboutThe economic outgrowth of any country depends on the extent to which itsfinancial system efficiently and effectively mobilizes and allocates resources.There are a number of banks and financial institutions that perform thisfunction one of them is the development bank. Development banks are unique financial institutions that perform the special task of fostering thedevelopment of a nation, for the most part not undertaken by other banks.Development banks are financial agencies that provide medium-and long-term financial assistance and act as catalytic constituents in promoting parallelismddevelopment of the country. They are engaged in promotion and developmentof industry, agriculture, and other key sectors. They also providedevelopment services that can aid in the accelerated growth of an economy.The objectives of development banks areTo serve as an agent of development in various sectors, viz. industry,agriculture, and international tradeTo accelerate the growth of the economyTo allocate resources to high priority areasTo foster rapid industrialization, specially in the private sector,so as to provide employment opportunities as well as higher productionTo develop entrepreneurial skillsTo promote the development of rural areasTo finance housing, small scale industries, infrastructure, and socialutilities.2.2 Introduction to the BankIDBI the 10th largest development bank in the world has promoted world class institutions in India. A few of such institution built by IDBI are the field Stock attribute Corp. (NSE), the National Securities Depository Services Ltd.( NSDL ) Stock Holding Corp. of India (SHICL) etc. IDBI is a strategic investor in a plethora of institutions, which have revolutionized the Indian Financial Markets.IDBI promote d IDBI BANK to mark the formal foray of the Idbi group into commercial Banking. Idbi Bank, which began with an equity capital base of Rs. 1000 million (Rs.800 million contribute by IDBI and Rs. 200 millions by SIDBI), commenced its first branch at Indore in November 1995.The support of Idbi bank took place after RBI issued guidelines for entry of new private sector banks in January 93. Subsequently, IDBI as promoters sought permission to establish a commercial bank and retained KPMG a management consultant of international repute to piddle the principle approval to establish Idbi bank on February 11th 1994 thereafter the bank was incorporated at Gwalior under companies act on 15th kinfolk 1994 with its registered office at Indore. The Certificate of Commencement of Business was received on 2nd December 1994. Banks registered office is in Indore and Head Office in Mumbai. adept of the reason for the growth of Indian banks like ICICI and IDBI is that they have been allowed freedom to open any no. of branches in a particular city or suburb. They have also been given the freedom to open ATMs unlike in both cases the foreign banks who have been restricted in both of these areas.2.3 Management OrganisationIDBI Bank is a Board-managed organisation. The responsibility for the day-to-daymanagement of operations of the Bank is vested with the Chairman ManagingDirector and two Deputy Managing Directors, who draw upon the support andexpertise of a cross- disciplinal Top Management Team. As on March 31, 2008, IDBIBank had a combined employee base of 8989, including professionals from the fieldsof accountancy, management, engineering, law, computer technology, banking andeconomics.Mr. Yogesh Agarwal,Chairman Managing DirectorMr. Jitender Balakrishnan, Mr. O.V. Bundellu,(Deputy Managing Director) (Deputy Managing Director)OTHER bill OF DIRECTORS2.4 IDBI Bank business chart2.5 IDBI bank organizational chart2.6 Products Services poverty-stricken services undermentione d services are provided to every type of A/C holder in general-ATMs Besides funds withdrawals, some of the heavy things that you can do through the International Debit cum ATM broadside are Balance Enquiry Statement Request halt-book Request miniskirt affirmations Cheque and Cash Deposits International usage Make purchases at 51,000 merchant establishments in India and over 10 million worldwide. Fabulous discounts and great deals at various establishmentsInternet BankingInternet Banking gives you the power to access your bank account from your Personal Computer. roughly of the important features of Internet Banking are Account Balance Inquiry execution tracking and history Cheque status inquiry Funds transfer facilities to Own-account or third-parties Cheque book Requests Stop have a bun in the ovenment Requests FD renewal Requests Phone Banking on the dot pick up your phone and access your account. The following features are available through Phone Banking A vailable round the clock 24*7*365 Current Balance Inquiry Last 5 transactions inquiry Statement by fax fax-back, fax to another number, fax to registerednumber, Statement by spot Cheque status enquiry Cheque book request Balance as of a particular dateMobile BankingThe unique feature is that this celerity is available across all mobile service providers. Balance enquiry details of Last three transactions Cheque payment status Cheque book request Statement requestOther servicesSunday BankingSome of our branches are also open on Sundays that gives you an opportunity to complete all your banking requirements at your convenience.LockerOur branches provide lockers facility at nominal chargesWho can open Account?Resident Individuals, Minors, Hindu single(a) Family (HUF), Trusts, Associations, Clubs, Societies, Foreign National residing in India can open a/c.Documents required for Account OpeningAccount gap form in vogue(p) testimonial size videoSelf stay or cash deposi t counterpart of mountain passIn the absence of passport imitate, copy of one document each from inclination A and List B is requiredList AVoters ID card *Defense services Id/ Government IDDriving License * travel cardPhoto credit cardList BLatest bank account/credit card logical argumentLatest electricity/telephone/mobile phone billLatest copy of LIC policy or insurance premium receiptLatest copy of NSCLetter from employer certifying current mailing addressLatest house claim agreementSuperSavings AccountAn assortment of benefits, earnings and convenience.Be it happiness in purport or more time for yourself, you have always desired moreof it. So why settle for less with your savings account?The SuperSavings Account is a complete financial package that provides youwith easy access to your money and complete banking convenience too. Itoffers you a whole range of options for optimal management of your money.Which means, with SuperSavings Account you not only save your money buta lso make it grow.So apart from the basic benefits of a savings account, we offer you options for high-velocity transfer of funds, options to pay your bills or tax online and options togrow money at attractive interest rates in the savings account. All thesefeatures are offered for a minimum sense of equilibrium of Rs 5,000. Please click on thelinks given below to find out more about each of these features.The SuperSavings Account is a complete financial package that provides youwith easy access to your money and complete banking convenience too. Itoffers you a whole range of options for optimal management of your money.Which means, with SuperSavings Account you not only save your money butalso make it grow.Roaming Current AccountA Current account for every businessNo two businesses are the same, which is why IDBI Bank offersfive RoamingCurrent Accounts Gold to suit yourbusiness needs. Based on the balance you choose to maintain in the account,you can then choose your particularis ed Roaming Current Account accordingly.IDBI Bank Current Accounts not only gives you the flexibility of bankinganytime, anywhere, but also allows you to save more money while doingbusiness across the country.Roaming Current Account from IDBI Bank comes packed with a host ofservices and facilities that makes your banking convenient and hassle-free.With services such as multi-city and multi-branch banking, electronic funds transfers, national glade in selected cities, 247 cash withdrawals fromATMs, Internet Banking, Phone Banking and SMS Banking, you are assuredof faster remittances and collection of funds at competitive rates. Whatsmore, extended IDBI Banking hours and Sunday Banking, all this to changebanking for youFeatures-Make payments to your vendors in different cities without any costs.Receive payments form your customers without any charge deducted from theamountDo all your banking right from where you are or wheresoever you travelMost importantly, maintain better relations with your vendors and customers.All this, only with the IDBI Bank RoamingCurrent Account.You can open a Current Account (Basic RoamingCurrent Account)with onlyRs 10,000. curb in mind, you will have to maintain an average quarterlybalance of Rs 10,000. But this is nothing compared to a host of services andfacilities that will make your current account work more effectively andefficiently.Open Current AccountsFollowing can open current A/cSole Proprietorship flyingPartnership firmPrivate and humanity Limited CompaniesHindu Undivided FamilyTrustsSocieties, Clubs AssociationsDocuments required for account scuttleSole ProprietorshipAccount opening formSigned declaration in the Account Opening form offer Copy or Self-cheque along with a copy of (any one)Voter ID card defence force Id/Govt ID Driving License PAN card Photo credit cardIn addition the following forms are requiredProof of existence of touch on proprietorship firm (any one)Electricity/Telephone bill for the sole propr ietorship firm Shop and governing body credentialsProof of PAN /GIR No or build 60 (only for cash deposits) Latest passport sized photograph of the sole proprietorIf the address mentioned in any of the above documents is different from that stated in the account opening form, kindly submit any one of the following to confirm the present addressRation card gas participation receiptlatest telephone bill latest electricity billPartnership firmAccount opening formSigned declaration in the Account Opening formPassport copies of all partners or Self-cheque along with a copy of (any one)Voter ID card Defence Id/Govt ID Driving License PAN card Photo credit cardIn addition the following forms are requiredProof of existence of partnership firm (any one)Shop and Establishment certificate Copy of registration certificate Copy of partnership routine Letter of consent signed by all partners (as per banks format) Private Limited and Public Limited CompaniesAccount opening formCopy of certif icate of incorporationNames and latest passport sized photographs of the authorized signatoriesCertified on-key copy of memorandum and articles of associationCertified true copy of commencement of businessPAN /GIR No details or Form 60Names, addresses of directors of the companiesCertified true copy of board resolutionHindu Undivided FamilyAccount opening formSigned declaration by Karta and Co-parcenors in the Account opening FormNames and signatures addresses of Karta and co-parcenorsNames, signatures and latest passport sized photographs of authorized signatoriesPAN /GIR No details or Form 60TrustsAccount opening formCopy of Trust DeedCopy of the resolution of the TrusteesCopy of registration certificateNames and latest passport size photographs of the authorized signatoriesNames, addresses of the trusteesClubs/Societies and AssociationsNames and signatures and latest passport sized photographs of authorized signatoriesCopy of rules and by-lawsCopy of the resolution of members fo r account operationCopy of registration certificateAccount Opening FormIdbi banks Business peculiar(a) Current account gives a host of free services and facilities that tick optimal utilization of funds, higher liquidity and cost savings. At he same time you dont have to keep a higher minimum balance. You need to keep an average quarterly balance of Rs. 50,000 only to avail the free servicesBusiness bounty Bronze (Rs. 1 lac-AQB)Type of Accounts BronzeAverage Quarterly Balance (AQB)1lacFree funds transfers (per month)Cheque payable locally (in over 65 idbi bank locations) 1.5 crDemand Draft per day (on over 65 idbi bank locations) 10 lackDemand Draft (on over three hundred non-idbi bank locations) chargeableElectronic Funds Transfers 1.5 crPay Orders un boundFree cheque collection (per month)Outstation cheque collection (on idbi bank locations) 50 lacDaily cheque pick-up from your establishment* YesFree Inter-branch bankingAny branch cash withdrawal (per day) 1lacAny branch c ash deposit (per day) Rs 20,000Total limit for Free transactions (per day) 6.86 crCost saving to the customer per year 16 lacAlso available Basic Current Account (AQB of Rs 10,000). you get monthly statement of account, certificate of balance, seep-in from FD and Net, Phone and Mobile banking facilities all FREEBusiness Premium Silver (Rs. 3 lacks -AQB)Types of Accounts Silver Average Quarterly Balance (AQB)3lacBanking, Customer Satisfaction IDBI Bank AwarenessBanking, Customer Satisfaction IDBI Bank AwarenessCHAPTER- I1.1 Title of the study1.2 Scope of the study1.3 Objective of the study1.4 Significance of study1.5 Researcher methodology1.1 Title of the study-A survey on banking products, customer satisfaction awareness of IDBI Bank1.2 Scope Importance of the StudyEach and every project study along with its certain objectives also have scope forfuture. And this scope in future gives to new researches a new need to research anew project with a new scope. Scope of the study not only consist one or two futurebusiness plan but sometime it also gives idea about a new business which becomesmuch more profitable for the researches then the older one.Scope of the study could give the projected scenario for a new observed in my projectare not exactly having all the features of the scope which I described above but alsonot lacking all the features.Research study could give an idea of network expansion for capturing moremarket and customer with better services and lower cost, with out compromisingwith quality.In future customer requirements could be added with the product and services forgetting an edge over competitors.Consumer behavior could also be used for the purpose of launching a newproduct with extra benefits which are required by customers for their account(saving or current ) and/or for their investments.Factors which are responsible for the performance for bank can also be used forthe modification of the strategy and product for being more profitable. 1.3 Objectives of the study-To know the customer needs and expectations.To find out the factors which customer take into consideration in opening a accountTo know that up to what extent a customer is satisfied with the bankTo know the customer complaints and their redressal1.4 Significance of the study-Every research is conducted to fulfill certain objectives and these objective in turn fulfill some purpose and are of significance for one or more then one party these research is significant for-To the Researcher-This study provides the researcher a practical insight of various activities and function of the bankThe researcher will also be able to develop on in depth knowledge of banking sectorThe study is also required for the partial fulfillment of the requirement for the degree of MBA as per the curriculumTo the Bank-The study would help IDBI Bank to know the customers attitude (about awareness and satisfaction level) towards its various products.1.5 Research Methodology-1) Type o f Research Research is descriptive in nature2) Universe Customer of IDBI Bank in New Delhi3) Sampling Unit Existing customer of IDBI Bank4) Sampling Technique Convenience method of sampling was used5) Sample Size 200 respondents6) Data Type Primary secondary dataPRIMARY DATAThe Primary data are those which are collected afresh and for the first time, and thushappen to be original in character.SECONDARY DATAThe secondary data are those which have already been collected by someone elseand which have already been passed through the statistical process.CHAPTER II2.1 Industry Introduction2.2 Introduction to IDBI bank All about2.3 Management Organization2.4 IDBI bank business chart2.5 IDBI bank organizational chart2.6 Product Services2.7 Subsidiaries of IDBI2.8 Review of literature2.1 Industry introductionThe Indian Banking industry, which is governed by the Banking RegulationAct of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled bank s. Scheduled banks comprisecommercial banks and the co-operative banks. In terms of ownership,commercial banks can be further grouped into nationalized banks, the StateBank of India and its group banks, regional rural banks and private sectorbanks (the old/ new domestic and foreign). These banks have over 67,000branches spread across the country in every city and villages of all nook andcorners of the land.The first phase of financial reforms resulted in the nationalization of 14 majorbanks in 1969 and resulted in a shift from Class banking to Mass banking.This in turn resulted in a significant growth in the geographical coverage ofbanks. Every bank had to earmark a minimum percentage of their loanportfolio to sectors identified as priority sectors. The manufacturing sectoralso grew during the 1970s in protected environs and the banking sector wasa critical source. The next wave of reforms saw the nationalization of 6 morecommercial banks in 1980. Since then the number of scheduled commercialbanks increased four-fold and the foreign banks (numbering42), regional ruralbanks and other scheduled commercial banks accounted for 5.7 percent, 3.9percent and 12.2 percent respectively in deposits and 8.41 percent, 3.14percent and number of bank branches increased eight-fold. And that was notthe limit of growth.After the second phase of financial sector reforms and liberalization of thesector in the early nineties, the Public Sector Banks (PSB) s found itextremely difficult to compete with the new private sector banks and theforeign banks. The new private sector banks first made their appearance afterthe guidelines permitting them were issued in January 1993. Eight newprivate sector banks are presently in operation. These banks due to their latestart have access to state-of-the-art technology, which in turn helps them tosave on manpower costs.During the year 2000, the State Bank Of India (SBI) and its 7 associatesaccounted for a 25 percent share in deposits and 28.1 per cent share in credit.The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5percent of credit during the same period.Current ScenarioThe industry is currently in a transition phase. On the one hand, the PSBs,which are the mainstay of the Indian Banking system are in the process ofshedding their flab in terms of excessive manpower, excessive nonPerforming Assets (Npas) and excessive governmental equity, while on theother hand the private sector banks are consolidating themselves throughmergers and acquisitions.PSBs, which currently account for more than 78 percent of total bankingindustry assets are saddled with NPAs (a mind-boggling Rs 830 billion in2000), falling revenues from traditional sources, lack of modern technologyand a massive workforce while the new private sector banks are forgingahead and rewriting the traditional banking business model by way of theirsheer innovation and service. The PSBs are of course currently working outchallenging strategies e ven as 20 percent of their massive employee strengthhas dwindled in the wake of the successful Voluntary Retirement Schemes(VRS) schemes.The private players however cannot match the PSBs great reach, great sizeand access to low cost deposits. Therefore one of the means for them tocombat the PSBs has been through the merger and acquisition (M A) route.Over the last two years, the industry has witnessed several such instances.For instance, HDFC Banks merger with Times Bank Icici Banks acquisitionof ITC Classic, Anagram Finance and Bank of Madurai. Centurion Bank,Indusind Bank, Bank of Punjab, Vysya Bank are said to be on the lookout. TheUTI bank- Global Trust Bank merger however opened a pandoras box andbrought about the realization that all was not well in the functioning of manyof the private sector banks.Private sector Banks have pioneered internet banking, phone banking,anywhere banking, mobile banking, debit cards, Automatic Teller Machines(ATMs) and combined various other servic es and integrated them into themainstream banking arena, while the PSBs are still grappling with disgruntledemployees in the aftermath of successful VRS schemes. Also, followingIndias commitment to the W To agreement in respect of the services sector,foreign banks, including both new and the existing ones, have been permittedto open up to 12 branches a year with effect from 1998-99 as against theearlier stipulation of 8 branches.Tasks of government diluting their equity from 51 percent to 33 percent inNovember 2000 has also opened up a new opportunity for the takeover ofeven the PSBs. The FDI rules being more rationalized in Q1FY02 may alsopave the way for foreign banks taking the M A route to acquire willing Indianpartners.Meanwhile the economic and corporate sector slowdown has led to anincreasing number of banks focusing on the retail segment. Many of them arealso entering the new vistas of Insurance. Banks with their phenomenal reachand a regular interface with the retail invest or are the best placed to enter intothe insurance sector. Banks in India have been allowed to provide fee-basedinsurance services without risk participation, invest in an insurance companyfor providing infrastructure and services support and set up of a separatejoint- venture insurance company with risk participation.Aggregate Performance of the Banking IndustryAggregate deposits of scheduled commercial banks increased at acompounded annual average growth rate (Cagr) of 17.8 percent during 1969-99, while bank credit expanded at a Cagr of 16.3 percent per annum. Banksinvestments in government and other approved securities recorded a Cagr of18.8 percent per annum during the same period.In FY01 the economic slowdown resulted in a Gross Domestic Product (GDP)growth of only 6.0 percent as against the previous years 6.4 percent. The WPIIndex (a measure of inflation) increased by 7.1 percent as against 3.3 percentin FY00.Similarly, money supply (M3) grew by around 16.2 percent as against 1 4.6percent a year ago.The growth in aggregate deposits of the scheduled commercial banks at 15.4percent in FY01 percent was lower than that of 19.3 percent in the previousyear, while the growth in credit by SCBs slowed down to 15.6 percent in FY01against 23 percent a year ago.The industrial slowdown also affected the earnings of listed banks. The netprofits of 20 listed banks dropped by 34.43 percent in the quarter endedMarch 2001. Net profits grew by 40.75 percent in the first quarter of 2000-2001, but dropped to 4.56 percent in the fourth quarter of 20002001.On the Capital Adequacy Ratio (CAR) front while most banks managed tofulfill the norms, it was a feat achieved with its own share of difficulties. TheCAR, which at present is 9.0 percent, is likely to be hiked to 12.0 percent bythe year 2004 based on the Basle Committee recommendations. Any bankthat wishes to grow its assets needs to also shore up its capital at the sametime so that its capital as a percentage of the risk-weig hted assets ismaintained at the stipulated rate. While the IPO route was a much-fancied onein the early 90s, the current scenario doesnt look too attractive for bankmajors.Consequently, banks have been forced to explore other avenues to shore uptheir capital base. While some are wooing foreign partners to add to thecapital others are employing the M A route. Many are also going in for rightissues at prices considerably lower than the market prices to woo theinvestors.Interest Rate SceneThe two years, post the East Asian crises in 1997-98 saw a climb in the globalinterest rates. It was only in the later half of FY01 that the US Fed cut interestrates. India has however remained more or less insulated. The past 2 years inour country was characterized by a mounting intention of the Reserve BankOf India (RBI) to steadily reduce interest rates resulting in a narrowingdifferential between global and domestic rates.The RBI has been affecting bank rate and CRR cuts at regular intervals toimp rove liquidity and reduce rates. The only exception was in July 2000 whenthe RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the rupeeagainst the dollar. The steady fall in the interest rates resulted in squeezedmargins for the banks in general.Governmental PolicyAfter the first phase and second phase of financial reforms, in the 1980scommercial banks began to function in a highly regulated environment, withadministered interest rate structure, quantitative restrictions on credit flows,high reserve requirements and reservation of a significant proportion oflendable resources for the priority and the government sectors. Therestrictive regulatory norms led to the credit rationing for the private sectorand the interest rate controls led to the unproductive use of credit and lowlevels of investment and growth. The resultant financial repression led todecline in productivity and efficiency and erosion of profitability of thebanking sector in general.This was when the need to develop a sound commercial banking system wasfelt. This was worked out mainly with the help of the recommendations of theCommittee on the Financial System (Chairman Shri M. Narasimham), 1991.The resultant financial sector reforms called for interest rate flexibility forbanks, reduction in reserve requirements, and a number of structuralmeasures. Interest rates have thus been steadily deregulated in the past fewyears with banks being free to fix their Prime Lending Rates(PLRs) anddeposit rates for most banking products. Credit market reforms includedintroduction of new instruments of credit, changes in the credit deliverysystem and integration of functional roles of diverse players, such as, banks,financial institutions and non-banking financial companies (Nbfcs).Domestic Private Sector Banks were allowed to be set up, PSBs were allowedto access the markets to shore up their Cars.Implications Of Some Recent Policy MeasuresThe allowing of PSBs to shed manpower and dilution of equit y are moves thatwill lend greater autonomy to the industry. In order to lend more depth to thecapital markets the RBI had in November 2000 also changed the capitalmarket exposure norms from 5 percent of banks incremental deposits of theprevious year to 5 percent of the banks total domestic credit in the previousyear. But this move did not have the desired effect, as in, while most bankskept away almost completely from the capital markets, a few private sectorbanks went overboard and exceeded limits and indulged in dubious stockmarket deals. The chances of seeing banks making a comeback to the stockmarkets are therefore quite unlikely in the near future. The move to increaseForeign Direct Investment FDI limits to 49 percent from 20 percent during thefirst quarter of this fiscal came as a welcome announcement to foreignplayers wanting to get a foot hold in the Indian Markets by investing in willingIndian partners who are starved of net worth to meet CAR norms. Ceiling forFII investmen t in companies was also increased from 24.0 percent to 49.0percent and have been included within the ambit of FDI investment.IDBI bank all aboutThe economic development of any country depends on the extent to which itsfinancial system efficiently and effectively mobilizes and allocates resources.There are a number of banks and financial institutions that perform thisfunction one of them is the development bank. Development banks areunique financial institutions that perform the special task of fostering thedevelopment of a nation, generally not undertaken by other banks.Development banks are financial agencies that provide medium-and long-term financial assistance and act as catalytic agents in promoting fitdevelopment of the country. They are engaged in promotion and developmentof industry, agriculture, and other key sectors. They also providedevelopment services that can aid in the accelerated growth of an economy.The objectives of development banks areTo serve as an agent of dev elopment in various sectors, viz. industry,agriculture, and international tradeTo accelerate the growth of the economyTo allocate resources to high priority areasTo foster rapid industrialization, particularly in the private sector,so as to provide employment opportunities as well as higher productionTo develop entrepreneurial skillsTo promote the development of rural areasTo finance housing, small scale industries, infrastructure, and socialutilities.2.2 Introduction to the BankIDBI the tenth largest development bank in the world has promoted world class institutions in India. A few of such institution built by IDBI are the National Stock Holding Corp. (NSE), the National Securities Depository Services Ltd.( NSDL ) Stock Holding Corp. of India (SHICL) etc. IDBI is a strategic investor in a plethora of institutions, which have revolutionized the Indian Financial Markets.IDBI promoted IDBI BANK to mark the formal foray of the Idbi group into commercial Banking. Idbi Bank, which began with an equity capital base of Rs. 1000 million (Rs.800 million contribute by IDBI and Rs. 200 millions by SIDBI), commenced its first branch at Indore in November 1995.The birth of Idbi bank took place after RBI issued guidelines for entry of new private sector banks in January 93. Subsequently, IDBI as promoters sought permission to establish a commercial bank and retained KPMG a management consultant of international repute to prepare the principle approval to establish Idbi bank on February 11th 1994 thereafter the bank was incorporated at Gwalior under companies act on 15th September 1994 with its registered office at Indore. The Certificate of Commencement of Business was received on 2nd December 1994. Banks registered office is in Indore and Head Office in Mumbai.One of the reason for the growth of Indian banks like ICICI and IDBI is that they have been allowed freedom to open any no. of branches in a particular city or suburb. They have also been given the freedom to open A TMs unlike in both cases the foreign banks who have been restricted in both of these areas.2.3 Management OrganisationIDBI Bank is a Board-managed organisation. The responsibility for the day-to-daymanagement of operations of the Bank is vested with the Chairman ManagingDirector and two Deputy Managing Directors, who draw upon the support andexpertise of a cross- disciplinary Top Management Team. As on March 31, 2008, IDBIBank had a combined employee base of 8989, including professionals from the fieldsof accountancy, management, engineering, law, computer technology, banking andeconomics.Mr. Yogesh Agarwal,Chairman Managing DirectorMr. Jitender Balakrishnan, Mr. O.V. Bundellu,(Deputy Managing Director) (Deputy Managing Director)OTHER BOARD OF DIRECTORS2.4 IDBI Bank business chart2.5 IDBI bank organizational chart2.6 Products ServicesFree servicesFollowing services are provided to every type of A/C holder in general-ATMs Besides cash withdrawals, some of the important things tha t you can do through the International Debit cum ATM card are Balance Enquiry Statement Request Cheque-book Request Mini statements Cheque and Cash Deposits International usage Make purchases at 51,000 merchant establishments in India and over 10 million worldwide. Fabulous discounts and great deals at various establishmentsInternet BankingInternet Banking gives you the power to access your bank account from your Personal Computer. Some of the important features of Internet Banking are Account Balance Inquiry Transaction tracking and history Cheque status inquiry Funds transfer facilities to Own-account or third-parties Cheque book Requests Stop payment Requests FD renewal Requests Phone BankingJust pick up your phone and access your account. The following features are available through Phone Banking Available round the clock 24*7*365 Current Balance Inquiry Last 5 transactions inquiry Statement by fax fax-back, fax to another number, fax to registerednumber, State ment by mail Cheque status enquiry Cheque book request Balance as of a particular dateMobile BankingThe unique feature is that this facility is available across all mobile service providers. Balance enquiry Details of Last three transactions Cheque payment status Cheque book request Statement requestOther servicesSunday BankingSome of our branches are also open on Sundays that gives you an opportunity to complete all your banking requirements at your convenience.LockerOur branches provide lockers facility at nominal chargesWho can open Account?Resident Individuals, Minors, Hindu Undivided Family (HUF), Trusts, Associations, Clubs, Societies, Foreign National residing in India can open a/c.Documents required for Account OpeningAccount opening formLatest passport size photographSelf cheque or cash depositCopy of passportIn the absence of passport copy, copy of one document each from List A and List B is requiredList AVoters ID card *Defense services Id/ Government IDDriving L icense *PAN cardPhoto credit cardList BLatest bank account/credit card statementLatest electricity/telephone/mobile phone billLatest copy of LIC policy or insurance premium receiptLatest copy of NSCLetter from employer certifying current mailing addressLatest house lease agreementSuperSavings AccountAn assortment of benefits, earnings and convenience.Be it happiness in life or more time for yourself, you have always desired moreof it. So why settle for less with your savings account?The SuperSavings Account is a complete financial package that provides youwith easy access to your money and complete banking convenience too. Itoffers you a whole range of options for optimal management of your money.Which means, with SuperSavings Account you not only save your money butalso make it grow.So apart from the basic benefits of a savings account, we offer you options forfaster transfer of funds, options to pay your bills or tax online and options togrow money at attractive interest rates in the savings account. All thesefeatures are offered for a minimum balance of Rs 5,000. Please click on thelinks given below to find out more about each of these features.The SuperSavings Account is a complete financial package that provides youwith easy access to your money and complete banking convenience too. Itoffers you a whole range of options for optimal management of your money.Which means, with SuperSavings Account you not only save your money butalso make it grow.Roaming Current AccountA Current account for every businessNo two businesses are the same, which is why IDBI Bank offersfive RoamingCurrent Accounts Gold to suit yourbusiness needs. Based on the balance you choose to maintain in the account,you can then choose your specific Roaming Current Account accordingly.IDBI Bank Current Accounts not only gives you the flexibility of bankinganytime, anywhere, but also allows you to save more money while doingbusiness across the country.Roaming Current Account from IDBI Bank c omes packed with a host ofservices and facilities that makes your banking convenient and hassle-free.With services such as multi-city and multi-branch banking, electronic funds transfers, national clearing in selected cities, 247 cash withdrawals fromATMs, Internet Banking, Phone Banking and SMS Banking, you are assuredof faster remittances and collection of funds at competitive rates. Whatsmore, extended IDBI Banking hours and Sunday Banking, all this to simplifybanking for youFeatures-Make payments to your vendors in different cities without any costs.Receive payments form your customers without any charge deducted from theamountDo all your banking right from where you are or wherever you travelMost importantly, maintain better relations with your vendors and customers.All this, only with the IDBI Bank RoamingCurrent Account.You can open a Current Account (Basic RoamingCurrent Account)with onlyRs 10,000. Keep in mind, you will have to maintain an average quarterlybalance of Rs 10, 000. But this is nothing compared to a host of services andfacilities that will make your current account work more effectively andefficiently.Open Current AccountsFollowing can open current A/cSole Proprietorship FirmPartnership firmPrivate and Public Limited CompaniesHindu Undivided FamilyTrustsSocieties, Clubs AssociationsDocuments required for account openingSole ProprietorshipAccount opening formSigned declaration in the Account Opening formPassport Copy or Self-cheque along with a copy of (any one)Voter ID card Defence Id/Govt ID Driving License PAN card Photo credit cardIn addition the following forms are requiredProof of existence of sole proprietorship firm (any one)Electricity/Telephone bill for the sole proprietorship firm Shop and Establishment certificateProof of PAN /GIR No or Form 60 (only for cash deposits) Latest passport sized photograph of the sole proprietorIf the address mentioned in any of the above documents is different from that stated in the account openin g form, kindly submit any one of the following to confirm the present addressRation card gas connection receiptlatest telephone bill latest electricity billPartnership firmAccount opening formSigned declaration in the Account Opening formPassport copies of all partners or Self-cheque along with a copy of (any one)Voter ID card Defence Id/Govt ID Driving License PAN card Photo credit cardIn addition the following forms are requiredProof of existence of partnership firm (any one)Shop and Establishment certificate Copy of registration certificate Copy of partnership deed Letter of consent signed by all partners (as per banks format) Private Limited and Public Limited CompaniesAccount opening formCopy of certificate of incorporationNames and latest passport sized photographs of the authorized signatoriesCertified true copy of memorandum and articles of associationCertified true copy of commencement of businessPAN /GIR No details or Form 60Names, addresses of directors of the companiesCe rtified true copy of board resolutionHindu Undivided FamilyAccount opening formSigned declaration by Karta and Co-parcenors in the Account opening FormNames and signatures addresses of Karta and co-parcenorsNames, signatures and latest passport sized photographs of authorized signatoriesPAN /GIR No details or Form 60TrustsAccount opening formCopy of Trust DeedCopy of the resolution of the TrusteesCopy of registration certificateNames and latest passport size photographs of the authorized signatoriesNames, addresses of the trusteesClubs/Societies and AssociationsNames and signatures and latest passport sized photographs of authorized signatoriesCopy of rules and by-lawsCopy of the resolution of members for account operationCopy of registration certificateAccount Opening FormIdbi banks Business Special Current account gives a host of free services and facilities that ensure optimal utilization of funds, higher liquidity and cost savings. At he same time you dont have to keep a higher minimum balance. You need to keep an Average quarterly balance of Rs. 50,000 only to avail the free servicesBusiness Premium Bronze (Rs. 1 lac-AQB)Type of Accounts BronzeAverage Quarterly Balance (AQB)1lacFree funds transfers (per month)Cheque payable locally (in over 65 idbi bank locations) 1.5 crDemand Draft per day (on over 65 idbi bank locations) 10 lackDemand Draft (on over 300 non-idbi bank locations) chargeableElectronic Funds Transfers 1.5 crPay Orders un limitedFree cheque collection (per month)Outstation cheque collection (on idbi bank locations) 50 lacDaily cheque pick-up from your establishment* YesFree Inter-branch bankingAny branch cash withdrawal (per day) 1lacAny branch cash deposit (per day) Rs 20,000Total limit for Free transactions (per day) 6.86 crCost saving to the customer per year 16 lacAlso available Basic Current Account (AQB of Rs 10,000). you get monthly statement of account, certificate of balance, seep-in from FD and Net, Phone and Mobile banking f acilities all FREEBusiness Premium Silver (Rs. 3 lacks -AQB)Types of Accounts Silver Average Quarterly Balance (AQB)3lac