1

A
Project Report
On
CUSTOMER RELATIONS MANAGEMENT IN
SERVICE ORGANIZATION IN INDIAN BANKING
SECTOR WITH REFERENCE TO TWO
NATIONALIZED AND TWO PRIVATE SECTOR BANK.

Submitted to

Gujarat University for the degree of

Master in Commerce
Faculty: Commerce
Subject: Management
By
Shraddha Kachhiya
C & S H Desai Arts College And L K L Doshi Commerce
College Balasinor
College Seat No :

22

Under the guidance of

Jayshree mam
C & S H Desai Arts College And L K L Doshi Commerce
College Balasinor
1

CERTIFICATE
This is to certify that Ms. has worked and completed her Project Work
for the degree of MASTER IN COMMERCE in the

faculty of

COMMERCE in the subject of A MANAGEMENT on Title of project

work to be written Customer Relations Management in service
organization under my supervision. It is her own work and facts
reported by her/his personal findings and investigations.

Name & Signature of Guide

Date of submission:

Name & Signature of Professor in Charge/Director/Principal of the

Institut

Stamp of the Institute with date

Declaration by student

I the undersigned Miss Shraddha kachhiya here by, declare that

this project work entitled Customer Relations Management in
service organization is a result of my own research work and has

not been previously submitted to any other University for any

other examination. I here by further declare that all information
of this document has been obtained and presented in accordance
with academic rules and ethical conduct.

College Seat No: 22.

Exam seat no

Date :

2016 .

Name & Signature

Place :

INDEX

4
SR NO

TOPIC

PAGE NO.

1.

Certificate

Declaration by student

Introduction

of

customer

relationship

management
1.1 Introduction of CRM
1.2 Rational of the study
1.3 Objective of the study
1.4 Research methodology
1.5 Chapterization scheme
1.6 Limitation of study
2

Customer

relationship

management

12

strategies to develop better

17

theory perspective
2.1 History of CRM
2.2 Meaning of CRM
2.3 Definition
2.4 Advantages
2.5 Disadvantages
2.6 Need of CRM
3

Marketing
CRM

3.1 Generic strategic framework

3.2 Competitive advantages
3.3 Differentiation
3.4 Focus strategy
3.5 value discipline model
3.6 Challenges of implementing CRM

6
3.7 Application of CRM in banking sector
3.8 Organization learning philosophy
3.9 Building brand image
3.10 Effective use of ATMs
4

CRM in Two Nationalized and Two Private

27

Sector Bank
4.1 Indian banking sector
4.2 Customer Relationship Marketing
4.3 Relationship Building Block, Customer
Satisfaction
4.4 HDFC Bank Profile
4.4.1 History - HDFC Bank
4.4.2 CRM in HDFC Bank
4.5 ICICI Bank Profile
4.5.1 History of ICICI
4.5.2 CRM in ICICI bank
4.6.1 SBI Bank Profile
4.6.2 History SBI Bank
4.7 BOB Profile
4.7.1 History BOB Bank
5
6

Analysis & interpretation of data

92

Conclusion and Recommendation

111

Bibliography

113

7
Annexure

114

Chapter - 1
7

Introduction
of
Customer
Relationship
Management
1.1 Introduction of CRM;
Customer relationship management (CRM) has the business purpose of intelligently
finding, marketing, selling to and servicing customers. CRM is a broadly used term that
covers concepts used by companies, and public institutions to manage their relationships
with customers and stakeholders. Technologies that support this business purpose include
the capture, storage and analysis of customer, vendor, partner, and internal process
information. Functions that support this business purpose include Sales, Marketing and
Customer Service, Training, Professional Development, Performance Management,
Human Resource Development and compensation.
8

Customer relationship management systems are becoming popular across various sectors
and have emerged as an important business strategy in today's competitive environment
in companies. It has been viewed as a process aimed at collecting customer data, find
profiles of customers and use the customer knowledge in specific marketing activities. It
is a discipline which enables the companies to identify and target their most profitable
customers.
CRM stands for Customer Relationship Management. It is a strategy used to learn more
about customers' needs and behaviors in order to develop stronger relationships with
them. Good customer relationships are at the heart of business success. There are many
technological components to CRM, but thinking about CRM in primarily technological
terms is a mistake. The more useful way to think about CRM is as a strategic process that
will help you better understand your customers needs and how you can meet those needs
and enhance your bottom line at the same time. This strategy depends on bringing
together lots of pieces of information about customers and market trends so you can sell
and market your products and services more effectively.

1.2 Rational of the study CRM:

To understand how companies manage their customer in current market situation.

To understand the scope of customer relationships advantage in market scenario.
To indentify various marketing strategies to develop better relationship with the customer.
To understand how companies survey their potential customer and the plans to get/attract

new customer.
How to serve customer better than the competitions.

1.3 Objective of the study:

To understand the concept of customer relationship management .

To examine the various marketing strategies to develop better customer relationship
management.
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To study the customer satisfaction for the customer relationship management of HDFC

and ICICI bank.

To analyze the level of customer centric from both customer and employee point of view.

1.4Research Methodology:
We have done exploratory research and for that purpose we had used secondary data.

We

had collected this secondary data from various published materials like newspapers, magazines,
books etc and from Internet web sites. From these various information and data we had done
qualitative and quantitative analysis to find out impact of various forces, effect of macro
environmental factors, major trends and future of the industry.

1. Source of Data:

Primary data

Secondary data.

2.

Research Instrument

Research tool were in depth interview of account holder.

3.

Sample Size

250 account holders

4.

Sampling methods

Non-probability sampling

Judgmental sampling

Contact method:

Here we have conducted personal interview for data collection.

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1.5Chapterization scheme:
Chapter No.1 Is about the introduction and general information of the project which includes
Introduction, Rationale of the study, Objective of the study, Data source and methodology,
Chapterization scheme and Limitation of the study.
Chapter No.2 Is need on the fundamental and basic knowledge of CRM. It includes history
meaning and definition, advantages and need of CRM.
Chapter No.3 Is about the strategies of CRM which is used by the banks for batterment of
customer relationship. It include generic strategic framework, competitive advantage,
differentiation , focus strategy, value

discipline model challenges of implementing CRM,

and application of CRM.

Chapter No.4 Shows the CRM in the HDFC & ICICI. Which includes Indian Banking sector ,
customer relationship marketing , relationship building block , customer satisfaction , HDFC
Bank profile and ICICI bank profile.

1.6 Limitation of study:

The study is restricted to 150 customers of account holder in geographical area due to
time constraints. Hence it may not reflect the satisfaction of the entire population of
account holder.

The non- probability convenience method used as sampling technique has it built
limitations.

Findings of the study would be influenced only by personal experience of the

Respondents.

The study is limited and therefore the findings of the study cannot it be extended to other
areas

The samples have been collected from the limited number of respondents.

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Time achieve is considered inadequate to conduct such survey.

The result of the study may not be generalized to all.

Some of the respondents were non co-operative.

Chapter-2
CRM
A
Theory
Perspective
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13

2.1 History of CRM:

Customer Relationship Management is the establishment, development, maintenance and
optimization of long-term mutually valuable relationships between consumers and the
organizations. Successful customer relationship management focuses on understanding the needs
and desires of the customers and is achieved by placing these needs at the heart of the business by
integrating them with the organization's strategy, people, technology and business processes. At
the heart of a perfect CRM strategy is the creation of mutual value for all the parties involved in
the business process. It is about creating a sustainable competitive advantage by being the best at
understanding, communicating, and delivering, and developing existing customer relationships in
addition to creating and keeping new customers. So the concept of product life cycle is giving
way to the concept of customer life cycle focusing on the development of products and services
that anticipate the future need of the existing customers and creating additional services that
extend existing customer relationships beyond transactions. CRM is a comprehensive approach
for creating, maintaining and expanding customer relationship. It provides seamless co-ordination
between customer service, marketing, information technology and other customer related
functions. It integrates people, process and technology to maximize relationships with all the
customers. It does not aim to build closer relationship with all customers, but it recommends that
organizations take initiative to identify the most valuable customers by looking for their life time
value. CRM means building an interdependent relationship with the customer in which each relies
on the other for business solutions and successes.

2.2 Meaning of CRM

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14

Customer relationship management (CRM) has the business purpose of intelligently finding,
marketing, selling to and servicing customers. CRM is a broadly used term that covers
concepts used by companies, and public institutions to manage their relationships with
customers
capture,

and stakeholders. Technologies that support this business purpose include the
storage

and

analysis

of

customer,

vendor,

partner,

and

information. Functions that support this business purpose include Sales,

Customer

Service,

Training,

internal process
Marketing

and

Professional Development, Performance Management,

Human Resource Development and compensation.

2.3 Definition

"Customer Relationship Management is a comprehensive approach for creating,

maintaining and expanding customer relationships.

"Customer relationship management (CRM) is the dynamic process of managing a

customer-company relationship such that customers elect to continue mutually beneficial
commercial exchanges and are dissuaded from participating in exchanges that are
unprofitable to the company".

According to Brown (1999), CRM is based upon two essential building blocks:

clear

and precise understanding of customer needs and values, and the alignment of
organizational capabilities to better meet customers' needs and to provide maximized
customer value. In these ways, CRM meets the goal proposed by Bergeron (2002) to
improve upon the existing dynamics of the company-customer relationship.

2.4 Advantages:

understanding the value of a particular customer during their entire life cycle.

consistent structured and complete customer information, customer identification.

comprehensive customer management through all communication channels

(telephone, e-mail, Internet, sales visits).

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greater emphasis on customer retention through loyalty-building programmes.

planning product cross-marketing strategies.

measuring marketing campaigns and sales activities impact.

optimising, automation and control of marketing, sales and service processes.

rationalisation of operations saving time and money.

2.5 Disadvantages:

difficult to work with.

require additional work inputting data.

dehumanize a process that should be personal.

require continuous maintenance, information updating, and system upgrading costly.

difficult to integrate with other management information systems

2.6 Need of CRM:

A Relationship-based Marketing approach has the following benefits

Over time, retail bank customers tend to increase their holding of the other products from
across the range of financial products / services available.

Long-term customers are more likely to become a referral source.

The longer a relationship continues, the better a bank can understand the customer and
his/her needs & preferences, and so greater the opportunity to tailor products and services
and cross-sell the product / service range.

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Customers in long-term relationships are more comfortable with the service, the
organization, methods and procedures. This helps reduce operating cost and costs arising
out of customer error

Intense Competition There is intense competition among the Private Sector Banks, Public
Sector Banks and Foreign Banks and they are all taking steps to attract and retain the
customers. New technologies, research facilities, globalization of services, the flood of
new products and the concept of all the facilities under one roof to provide better
customer service leading to customer delight.

Well Informed Customers The Customers in Banking Industry today are well informed.
With the introduction of new technology, the world has become like a small village.
Thus, if a Bank wants to have more customers, it should develop a good relationship with
its present customers and try to maintain the same in the future also.

Decline in Brand Loyalty In the present scenario, brand loyalty is on decline. The
customers are switching over frequently to avail the better facilities from other banks.
Newer and superior products and services are being introduced continuously in the
market. Thus, the banks have to upgrade their products, improve customer service and
create bonds of trusts through proper care of customer needs and regular
communications. With the help of CRM, strong customer loyalty and a good image for
the organization can be developed.
1

Improved Customer Retention In the intensely competitive banking industry,

retention of existing customers is vital, which can be achieved through the process of
CRM. With increased number of banks, products and services and practically nil
switching costs, customers are easily switching banks whenever they find better
services and products. Banks are finding it tough to get new customers, and more
importantly, retain existing customers. According to a research by Reich held and
Sesser in the Harvard Business Review, 5% increase in customer retention can
increase profitability by 35% in banking business, 50% in insurance and brokerage,
and 125% in the consumer credit card market. Therefore, banks are now stressing on
retaining customers and increasing market share.
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Chapter-3
Marketing strategies
to
develop
17

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batter
CRM
3.1 Generic Strategic Framework:
Competitive advantage grows fundamentally out the value a firm is able to create for its buyers
that exceeds the firms cost of creating it. Value is what customers willing to pay and superior
value stems from offering lower prices than competitors for equivalent benefits of providing
unique benefits that more than offset a higher price. The theory consists of three main strategies
(cost leadership, differentiation and focus) which are shown in the figure 2.1 while cost
leadership and differentiation strategies address a whole industry, focus strategies address
specific or small clusters of customers within an industry.

3.2 Competitive Advantage:

Competitive Scope:
The strategy requires a firm (bank) to serve at the lowest cost in the industry. Economies of
scale, unique technology that is not available to other firms, using cost effective channels are
some of the ways for being able to use the strategy. The strategic logic of cost leadership strategy
requires a firm to be cost leader, not one of the several firms vying this position. For banking
sector, a broad target cost leadership strategy itself is not a good strategy as it decreases the profit
margins extensively which will soon be followed by other banks. That's why there is no
significant difference in general interest rates, loan rates, transaction fees of bank in a stable
economy and banking sector.

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3.3 Differentiation:
The aim of the strategy is to be unique in the industry and this uniqueness must be valuable for
customers. The uniqueness can be one or a set of dimensions. Areas of differentiation can be:
product service, marketing, sales, image, delivery and etc. In banking sector, differentiation can
be crafted by a single or a set of these dimensions. While brand differentiation and product
differentiation would be applicable for broad targeting service, marketing and delivery
differentiation strategies would be suitable for narrow scope targeting. A broad target service
differentiation is not for banks they are looking for profitability. That is why today many banks
use customer segmentation to service its customers rather than given the same service to all
customers.

3.4

Focus Strategy:

The focus strategy involves concentration on particular buyer groups, geographic areas or
product/market segments. By selecting a particular segment group or group of segments,
company attempts to tailor its strategy to service the needs of its segment better than the
competitors. A focus strategy may emphasize differentiation or cost advantage (Payen). Events
based marketing is an example of focus differentiation strategy (marketing differentiation),
which matches customer transactions to tailored marketing and sales pitches Priority banking is
another example of focus differentiation strategy (service differentiation), which aims to give
better service to more profitable customers of a bank. Today customers look for individualize
service from their banks and banks highly use focus differentiation strategies to satisfy
customers. Banks use "cost focus strategy" mostly for profitable customers in order to retain
them by increasing their switching cost. It can be synthesize that, for banking sector, board target
differentiation strategies are likely to attract the potential customer, while narrow target
differentiation strategies (focus strategy) are likely to retain bank's existing profitable customers
and allocate the bank's resources more effectively. For example, brand, image of the bank is an
important why for bank to differentiate themselves from all the other banks and attract potential
customers. Launching innovate products is another why of attracting potential customers.
Michael Porter (Porter 2006, cited in Streeter 2006) states his thoughts, about competition and
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banks, in a recent banking conference. Porter thinks that banking sector is entering an era of
strategic positioning. To succeed in the new era, companies have to deliver something unique,
but most banks do what others do, what he calls, to competition. He stated that "The worst thing
you can do is compete with your rival on the same things. If you do, the competition almost
always becomes a destructive arms race. Strategy, is striving to be unique, which required
choices." As it can be understood, porter insists the successful firms can only compete with one
generic strategy, in isolation of other generic strategies. For many researchers this viewpoint is
not accurate. What should be pointed out is the successful firms tend to compete with multiple
strategies. Contingent strategies are important for their survival. (Hall 1983; Ham brick 1983;
Wright, 1986, cited in Wright et al 1988) The other critical view for porter's monolithic strategy
comes from Wright (1986 cited in Wright et al.), he expounds that in a fragmented industry like
banking, where there the many players in different sizes, it is difficult to be successful with
adapting one generic strategy. In banking industry, a sustainable competitive advantage can be
gained with a blend of different strategies, but a powerful focus differentiation strategy in service
cannot be neglected. Products and price can be easily copied. Service is more difficult to imitate
than a product because service requires customer input and involvement (Payen 2006).

Today, building a competitive advantage is based on how well a bank serves its customer CRM is
differentiation strategy that banks can use to acquire, grow and retain profitable customer
relationships, with the goal of creating a sustainable competitive advantage. In the following
part, another important competitive advantage strategy framework will be discussed and
comparisons will be done with porters' Generic Strategies framework

3.5 Value Discipline Model:

Porters Generic Strategies Framework alone is not enough to understand the positioning
strategies of banks in terms of CRM. Porters focus on industry structure is a powerful means of
analyzing competitive advantage in itself, but it has been criticized for being too static in an
increasingly fast changing world. For a deeper understanding, Michael Treacy and Fred
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Wiesermas Value Disciplines Model has been examined. This model is another important
strategic framework for market positioning which has the following 3 positioning strategies:
Operational excellence
Product leadership
Customer intimacy
CRM can be strategically embedded particularly in two of the three value disciplines (1)
Operational Excellence, and (2) Customer Intimacy. With customer intimacy, Wieserma (1998)
shows how companies can profit from establishing closer, more co-operative customer
relationships. With operational excellence, firms aim to have economical, efficient processes
whose resulting delivered values to customers are low prices and service convenience.
(Wieserma & Treacy 1996). Firms applying customer intimacy focus on knowing the customer
and building close relationships with these customers. CRM is often solely related to the
customer intimacy value discipline. If CRM is embedded in a customer intimacy strategy, then
CRM will be relationship-oriented. Firms embedding CRM in an operational excellence strategy
focus on cost- reductions and raising the quality of the customer interaction process through
process improvements.

3.6 Challenges of Implementing CRM:

The challenges faced by many of the banks whilst implementing CRM can be summarized as the
followings:
Getting management sponsorship
Quality of customer data
Alignment issue (Alignment of people and processes)
Lack of skilled people
Determining the right time for customer needs
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Using customer data more intelligently

Incorporating customer data and customer preferences to the customer data base
Using right technologies
Real time data cross all customer channels
Having 360- degree view of customers (Single view of customers)
The retail banking market is fiercely competitive and saturated (Pili 2006). The competition is
forcing banks to find new ways of satisfying customers and quick adaptation to changes. The
competition among the banks itself is also very major domestic players on the arena. Banks are
aware of this fact and exploit new trends to continue their existence in the market. CRM is one of
these trends that are highly adopted by many banks.

The satisfaction level of customers who agree that they are treated as a valued customer is the
measuring part for CRM's success in the bank. This could be attributed to the distinctive
communication capabilities, which target to establish an emotional link with the customer. This
is highly related with organizational learning philosophy and adaptive culture of the banks.

3.7 Application of CRM in Banking Sector:

Based on the discussions made above, appropriate and effective application strategies of CRM
are given to improve bank's competitive position in the market. Changing Mindsets
Customer Centric, Adaptive, Innovative Culture
Any bank's long heritage brings rigid and conservation mindsets together which makes the
change adaptation difficult, which is essential for CRM as mentioned in the "Critical Success
Factors of CRM" part. Although this rigidity seems to be decreasing, a mindset change is needed
for the bank. The rigidity of management and the conservative hierarchical organization
structures decrease the speed of CRM implementations and operation in banks. Banks can use
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any other good bank which is implementing CRM as benchmarks, which have more flexible and
innovative cultures and where organizational structure is flatter. The charge of mindsets must
start from the management level and continue to the all the level of the organization with the
support of management. At this point a paradigm shift is needed which can be summarized as
follows:
A customer centric and relationship-oriented culture must be adopted instead of
operation centric and sales oriented culture.
Management's attitude to employee must be proactive instead of being
reactive; instead of employee compliance, continuous improvement must be
supported.
Training culture must be improved to organization learning philosophy where
self-learning is supported.
Employee must be empowered in order to carry on their responsibilities faster
and efficiently.
Teamwork and coaching must be developed, instead of individuation.
Measurement basis must be objective, fair and transparent. Employee must be
motivated by rewards and supportive attitude of their managers. Leaders play an important role
in this change process. So that banks can invest in experienced professionals with leadership
skill, which can influence the organization to encourage and convince for change. Banks also
must consider employee career development and leadership training. They can overcome the
problem of absence of skilled people regarding with CRM by training employee with the help of
leadership coaching. Mission statement of bank must be revised and statements that are stressing
the customer focused, innovative culture must be put in place. This focus must be supported with
in-house training and the message should be clearly passed down to each level in the
organization to ensure solid commitments.
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3.8 Organizational Learning Philosophy:

Organizational learning is more than providing training sessions to employees when it is needed;
it is a philosophy. Banks must introduce organizational learning philosophy to nurture new and
expansive patterns of thinking where innovative thinking is supported. Organizational learning
philosophy consists of a fast adaptive culture, which is an important core competence for today's
banking industry. Leadership coaching can help in adaptation process. Also e-leanings about
technical and non-technical issues can be provided via intranet connection of Banks. Banks can
exploit organizational learning philosophy while implementing its CRM strategies employees
and customers are the end user of CRM strategies and implementations, so that it can capitalize
on their feedbacks, expectations, satisfaction and dissatisfaction points to improve its strategies
and implementations. Banks can conduct regular discussion sessions with employee and
customers. New products, services of the bank can be shared and customers' offering for better
products and services than its competitor can be learned customers' further expectations can be
sought which would be crucial for further product and service design. This help bank to
understand needs of customer's factor competitors, which result with innovative product and
services. This is also an impotent way to explorer and rectifies problems face by users quickly,
which paves the way for operational excellence and customer intimacy. All these mindset
changes will help banks to overcome the alignment problems, alignment of people and
processes, which are obstacle in the CRM success.

3.9 Building Brand Image:

If banks seem to have an introverted culture; it must adopt a more extroverted culture to promote
its brand. This needs a change in mindsets from management level to employees level. By using
CRM, it can build strong relationships with customers. The successful service excellence and
customer intimacy strategies can result with good word of mouth which is the most effective way
of advertisement. Employees can play a critical role in building a strong brand. Banks must
equip its employee with necessary mindsets and skill so that they will play as an ambassador role
in promoting brand identity. Banks have some CRM capabilities that the order banks don't have
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so it must promote its superior capabilities better a build a strong brand. They can use more
advertisements on TV, newspapers, and magazines, Internet etc. By using CRM capabilities,
banks can find out customers' needs and expectations faster than rivals and accordingly can
launch innovative products and services. Innovative products attract new customers and promote
brand as a pioneer in the market. Re-Integration of Operational Analytical and Collaborative
CRM Although many banks have very high analytical CRM capabilities, they have deficiencies
in operational and collaborative CRM. So banks can overcome the challenge of insufficient
quality of customer data by using an integrated CRM system and interacted channel
management. To enhance its operational CRM, bank should adopt the mindset changes to equip
its sales force with necessary mindset and skill to integrate them to new processes. To improve
customer service automation and collaborative CRM capabilities, banks should use an
"Interacted channel management" Online banking is very crucial for today' bank's customers. So
banks should direct its customers of online channels, which reduce cost and increase speed of
transactions for both parties. It will also ease the tracking of customer information. Various
systems such as web-chat and call back services to its communication channels add value to
CRM. Also, banks must develop its telephone banking. And all channels must be integrated with
each other.

3.10 Effective Use of ATMs

ATMs are very important for the bank choice of people. Banks have to capitalize on their ATMs
better by expanding their branch network, locating ATMs into strategic points where they can
each more people. With new ATMs in existence, customers can update their information, which
is a strategic way to improve customer data. As it is a new service. Introduction brochures must
be placed near ATMs, explaining their use and also a demo may be put into web site, which
shows which transactions can be done by ATMs and may show all the ATM transactions step by
step. So that customer feels more confident when they first use it. Because people are afraid to
their bankcards might get caught in the ATMs because of any misuse.

Increasing Switching Cost

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In order to retain customers and increase existing customers' share of wallet, Banks must develop
strategies that will increase switching costs. It can increase switching cost with excellent service,
customer intimacy and focus differentiation strategies. By building emotional links with
customers and making they feel as a valued customer. Other tactics are giving more reward
points and using competitive pricing and promotion strategies. Promotion may be important for
credit card holders.
Focus on Private and Premier (Priority) Banking
Many banks already practice private banking and priority banking but in order to incorporate
CRM to the highest, it should be strong player in private market. One of the main aim and
ultimate goal of CRM is to retain and acquire must profitable customers, which affect overall the
profitability of bank. To attract more private banking customers, banks must offer more
individualize and attractive products and services to these customers. And its advertisement and
packing must be done well. On the other side, like what some other banks do, banks can use
referral programs. In return shopping vouchers can be offered to customer who can introduce a
private banking customer successfully. To retain private banking customers, more waiver and
discounts must be used. To increase their profitability, their saving can be attracted by educating
and advising them about the financial markets and financial products. Banks should also pursue
the strategy to grow profitability of customer who is not highly profitable at the moment but have
the potential to become. Lastly as universally understood customer satisfaction is very important
for the aim of CRM, effective and efficient customer satisfaction management strategy should be
enabled to analyze the customer profiles, to detect their needs and potential profitability areas
and establish the necessary actions to achieve customer satisfaction, competitive advantage and
thus the profitability. To sum up, any banks can exploit CRM in order to gain competitive
advantage over its rivals and increase their customer base for having bigger slice of pie.

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Chapter-4
CRM in Two
Nationalized and Two
Private Sector Bank
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4.1 Indian banking sector:

The Reserve Bank of India (RBI) is Indias central bank. However, the banking industry is
currently dominated by public sector banks, numerous private and foreign banks exist. Indias
government owns banks dominated market. Their performance has been mixed, with a few being
consistently profitable. Several public sector banks are being restructured and in some the
government either already has or will reduce its ownership.

Banking in India has its origin as early as the Vedic period. It is believed that the transaction
from money lending to banking must have occurred even before menu, the great Hindu jurist,
who has devoted a section of his work to deposit his advances and laid down rules relating to rest
of interest. During the Mogul period, the indigenous bankers played a very important role in
lending money and financing foreign trend commerce. During the day of east India Company, it
was the turn of the agency houses to carry on banking business. The general bank of India was
the first joint stock bank to t be established in the year 1786.the other which followed where the
bank of Hindustan and Bengal bank. The bank of Hindustan is reported to have continued till
1906 while the other two failed in mean time. In the first half of the 19 century the east India
company established three bank, the bank of Bengal in 1809, the bank of Bombay in 1840,the
bank of madras in 1843. This three banks also known as residency bank, where independent units
and functioned well. this tree banks where amalgamated in 1920 and new bank, the imperial
bank of India was established on 27th jan,1921.with passing of the state bank of India act in
1955the undertaking of the imperial bank of India was taken by the newly constituted state bank
of India. The reserve bank which is the central bank was created in 1935 by passing reserve bank
of India act 1934 in the walk of the Swedish movement, a numbers of banks with Indian
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management were established in the country namely, Punjab national bank ltd, bank of India ltd.
Canada bank ltd, Indian bank ltd, the bank of Baroda ltd, central bank of India ltd. On July
19,1969,14 major banks of the country were nationalized and 15 th April 1980 six more
commercial private sector banks were also taken over by the government.

Today the commercial banking system in India may be distinguished into:

Central Bank and Monetary Authority

Reserve Bank of India

Apex Banking Institutions

IDBI1

NABARD2

EXIM BANK

IIBI 3

NATIONAL
HOUSING
BANK

SIDBI

2
3
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BANKING INSTITUTIONS

Commercial

Regional Rural

Banks

Co-operative

Banks

Banks

Public

Private
sector

State Bank

sector

Nationalized Bank

Indian

Foreign

Group

Subsidiary Companies

State CoOp Bank

SBI

Subsidiary
Banks

Old
Banks

New

Local Area

Banks Banks

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Subsidiary
Companies

Central/District
Co-Op Bank

Primary Credit

Societies

Development Banks

Industrial Development Banks

All India

Land Development Banks

State Level
State

Level

Development

Banks
IFCI

ICICI5
SFCs6

SIDCs7

4
5
6
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Primary Land
Subsidiary

Companies

Development
Bank

Public sector bank:

A. state bank of India and its associated banks called the state bank group
B. 20 nationalized bank
C. regional rural banks mainly sponsored by public sector banks

Private sector banks:

A. old generation private bank
B. new generation private banks
C. foreign banks in India
D. scheduled co-operation banks
E. non scheduled banks

Co operative sector:

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The co-operative banking sector has been developed in the country to the supplement the village
money lender. The co operative banking sector in India is divided into 8 components:
1. State co-operative bank
2. Central co-operative bank
3. Primary agriculture credit societies
4. Land development banks
5. Urban co-operative banks
6. Primary Agriculture development banks
7. Primary land development banks
8. State land development banks

Development banks:1. Industrial finance corporation (IFCI)

2. Industrial development bank of India (IDBI)
3. Industrial investment bank of India (IIBI)
4. Industrial credit and investment corporation of India (ICICI)
5. Small industries development bank of India (SIDBI)
6. SCICI LTD.
7. National bank for agriculture and rural development (NABARD)
9. National housing bank

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4.2 Customer Relationship Marketing:

Traditional marketing theory and practice have focused on attracting new customers rather than
retaining existing ones. Today, however, although attracting new customers remains an important
marketing task, the emphasis has shifted toward Relationship Marketing creating, maintaining,
and enhancing strong relationships with customers and other stake holders. Beyond designing
strategies to attract new customers and create transaction with them, companies are going all out
to retain current customers and build profitable, long term relationship with them. The new view
is that marketing is the science and arts of finding, retaining, and growing profitable customers.

Why the new emphasis on retaining and growing customers? In the past, many companies took
their customers for granted. Facing an expanding economy and rapidly growing market,
companies could practice a leaky bucket approach to marketing. Growing market meant a
plentiful supply of new customers. Companies could keep filling the marketing bucket with new
customers without worrying about losing old customers through holes in the bottom tag of the
bucket.

However, companies today are facing some new marketing realities. Changing demographics,
more sophisticated competitors, and over capacities. In many industries- all of these factors mean
that there are fewer customers to go around. Many companies are now fighting for shares of flat
or fading markets. Thus, the costs of attracting new consumers are rising. In fact, it costs five
times as much to attract a new customer as it does to keep a current customer satisfied.

Companies are also realizing that losing a customer means more than a single sale: it means
losing the entire stream of purchases that the customer would make over a life time of patronage.
For example, here is are dramatic in illustration of customer lifetime value:- the amount by
which revenues from a given customer over time will exceed the companys costs of attracting,
selling, and servicing that customers.

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ATTRACTING, RETAINING, AND GROWING CUSTOMERS:

The key to building lasting relationship is the creation of superior customer value and
satisfaction. Satisfied customers are more likely to be loyal customers, and loyal customers are
more like to give the company a larger share of their business. We now look more closely at the
concepts of customer value and satisfaction, loyalty and retention, and share of customer.

4.3 Relationship Building Block, Customer Satisfaction

Attracting and retaining customers can be a difficult task. Todays customers face a vast array of
product and brand choices, prices and suppliers. The company must answer a key question: how
do customers make their choices? The answer is that customers choose the marketing offer that
they believe will give them the most value. They are satisfied with and continue to buy offers
that consistently meet or exceed their value expectations. Lets look more closely at customer
value and satisfaction.

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Quality:
The totality of features and characteristics of a product or service that bear on its ability to
satisfy stated or implied needs is called quality.

Value delivery network:

The network made up of the company, supplier, distributors, and ultimately customers who
partner with each other to improve the performance of the entire system.

Cost:
Todays most successful companies are raising expectations and delivering performance to
match. These companies embrace total customer satisfaction. For example, Honda climes
one reason our customers are so satisfied is that we arent. Cigna vows 100% satisfaction.
100% of the Time. Such companies track their customers expectations, perceived company
performance, and customers satisfaction relative to competitors, it does not attempt to
maximize customer satisfaction. A company can always increase customer satisfaction by
lowering its price or increasing its services, but this may result in lower profits. Thus, the
purpose of marketing is to generate customer value profitably. This requires a very delicate
balance.

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4.4 HDFC Bank Profile:

HDFC Bank Ltd
BSE: 500180 | NSE: HDFCBANK | ISIN: INE040A01026
Market Cap: [Rs.Cr.] 147,624 | Face Value: [Rs.] 2
Industry: Banks - Private Sector
HDFC(Housing development finance corporation) Bank Ltd is a major Indian financial services
company based in Mumbai. The Bank is a publicly held banking company engaged in providing
a wide range of banking and financial services including commercial banking and treasury
operations. The Bank at present has an enviable network of 2201 branches and 7110 ATMs
spread in 996 cities across India. They also have one overseas wholesale banking branch in
Bahrain, a branch in Hong Kong and two representative offices in UAE and Kenya. The Bank
has two subsidiary companies, namely HDFC Securities Ltd and HDB Financial Services Ltd.
The Bank has three primary business segments, namely banking, wholesale banking and
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treasury. The retail banking segment serves retail customers through a branch network and other
delivery channels. This segment raises deposits from customers and makes loans and provides
other services with the help of specialist product groups to such customers. The wholesale
banking segment provides loans, non-fund facilities and transaction services to corporate, public
sector units, government bodies, financial institutions and medium-scale enterprises. The
treasury segment includes net interest earnings on investments portfolio of the Bank. The Bank's
ATM network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders. The Bank's
shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of
India Ltd. The Bank's American Depository Shares (ADS) are listed on the New York Stock
Exchange (NYSE) and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg
Stock Exchange. HDFC Bank Ltd Was incorporated on August 30, 1994 by Housing
Development Finance Corporation Ltd. In the year 1994, Housing Development Finance
Corporation Ltd was amongst the first to receive an 'in principle' approval from the Reserve
Bank of India to set up a bank in the private sector, as part of the RBI's liberalization of the
Indian Banking Industry. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995. In the year 1996, the Bank was appointed as the clearing bank by the NSCCL.
In the year 1997, the launched retail investment advisory services. In the year 1998, they
launched their first retail lending product, Loans against Shares. In the year 1999, the Bank
launched online, real-time netbanking. In February 2000, Times Bank Ltd, owned by Bennett,
Coleman & Co. / Times Group amalgamated with the Bank Ltd. This was the first merger of two
private banks in India. The Bank was the first Bank to launch an International Debit Card in
association with VISA (Visa Electron). In the year 2001, they started their Credit Card business.
Also, they became the first private sector bank to be authorized by the Central Board of Direct
Taxes (CBDT) as well as the RBI to accept direct taxes. During the year, the Bank made a
strategic tie-up with a Bangalore-based business solutions software developer, Tally Solutions
pvt Ltd for developing and offering products and services facilitating on-line accounting and
banking services to SMEs. During the year 2001-02 the bank was listed on the New York Stock
Exchange. Also, they made the alliance with LIC for providing online payment of insurance
premium to the customers. During the year 2002-03, the Bank increased the number of branches
from 171 Nos to 231 Nos and the size of the Bank's ATM network expanded from 479 Nos to
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732 Nos. They also expanded their presence in the 'merchant acquiring' business. During the year
2003-04, the Bank expanded the distribution network with the number of branches increased
from 231 Nos to 312 Nos and the size of the Bank's ATM network increased from 732 Nos to
910 Nos. In September 2003, they entered the housing loan business through an arrangement
with HDFC Ltd, whereby they sell HDFC Home Loan product. During the year 2004-05, the
Bank expanded the distribution network with the number of branches increased from 312 Nos to
467 Nos and the size of the Bank's ATM network increased from 910 Nos to 1147 Nos. During
the year 2005-06, the Bank launched the 'no-frills account', a basic savings account offering to
the customer. Also, the distribution network was expanded with the number of branches
increased from 467 Nos (in 211 cities) to 535 Nos (in 228 cities) and the number of ATMs from
1147 Nos to 1323 Nos. During the year 2006-07, the distribution network was expanded with the
number of branches increased from 535 Nos (in 228 cities) to 684 Nos (in 316 cities) and the
number of ATMs from 1323 Nos to 1605 Nos. They commenced direct lending to Self Help
Groups. Also, they opened a dedicated branch for lending to SHGs, in Thudiyalur village (Tamil
Nadu). In September 28, 2005, the Bank increased their stake in HDFC Securities Ltd from
29.5% to 55%. Consequently, HDFC Securities Ltd became a subsidiary of the Bank. During the
year 2007-08, the Bank added 77 Nos new branches take the total to 761 Nos branches. Also,
372 Nos new ATMs were also added taking the size of the ATM network from 1605 Nos to 1977
Nos. HDB Financial Services Ltd became a subsidiary company with effect from August 31,
2007. In June 2, 2007, the Bank opened 19 branches in a day in Delhi and the National Capital
Region (NCR). During the year 2008-09, the Bank expanded their distribution network from 761
branches in 327 cities to 1,412 branches in 528 Indian cities. The Bank's ATMs increased from
1,977 to 3,295 during the year. As per the scheme of amalgamation, Centurion Bank of Punjab
Ltd was amalgamated with the Bank with effect from May 23, 2008. The appointed date for the
merger was April 01, 2008. In October 2008, the bank opened their first overseas commercial
branch in Bahrain. The branch offers the bank's suite of banking services including treasury and
trade finance products for corporate clients and wealth management products for Non-resident
Indians. During the year 2009-10, the Bank expanded their distribution network from 1,412
branches in 528 cities to 1,725 branches in 779 cities. The Bank's ATMs increased from 3,295
Nos to 4,232 Nos during the year. During the year 2010-11, the Bank expanded their distribution

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network from 1,725 branches in 779 cities to 1,986 branches in 996 Indian cities. The Bank's
ATMs increased from 4,232 to 5,471 Nos.

4.3.2 History - HDFC Bank:

1994 - The Bank was Incorporated on 30th August. A new private sector Bank promoted by
housing Development Corporation Ltd. (HDFC), a premier housing finance company. The bank
is the first of its kind to receive an in-principle approval from the RBI for establishment of a
bank in the private sector. Certificate of Commencement of Business was received on 10th
October 1994 from RBI.
- The Bank transacts both traditional commercial banking as well as investment banking. HDFC,
the promoter of the bank has entered into an agreement with National Westminister Bank Pc. and
its subsidiaries (Nat west Group) for subscribing 20% of the banks issued capital and providing
technical assistance in relation to the banks proposed banking business.
1995- 70 No. of equity shares issued to subscribers to the Memorandum & Articles of
Association on 30th August 1994. On the same date 500,00,000 equity shares were allotted to
HDFC promoters. 509,20,000 shares were allotted to HDFC Employees Welfare Trust and
HDFC Bank Employees Welfare Trust on 22nd December, 1994.
- On 16.1.1995, 90,79,930 No. of equity shares were allotted to Jarrington Pvt. Ltd. Another
400,00,000 equity shares were allotted on private placement basis to Nat west Group on
9.5.1995. 500,00,000 shares were allotted to the public on 9.5.95 (all were taken up).

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- The Bank opened its first branch in Ramon House at Church gate, Mumbai on January 16th.
- The Bank has created an efficient operating system using well tested state-of-the-art software.
1996- HDFC Bank has entered the banking consortia of over 50 corporates, including some
leading multinational companies, flagship companies of local business houses and strong public
sector companies.
- HDFC Bank has set up a state-of-the-art dealing room to handle all transactions possible in
Indian financial markets.
- The Certificates of Deposits were awarded a PP1+ rating which is the highest rating for short
term instruments indicating superior capacity for repayment.
1997- The bank is one of the largest mobilisers of retail deposits through its network of 20
branches. Its credit deposits ratio was 53.8%.
- The bank has set up a ultra-modern hub at Powai in Mumbai where the bank's central computer
is housed. This hub housed in 35,000 square feet of space, houses data of all the branches and
facilitates the introduction of new products and services.
- HDFC has installed state-of-the-art systems to facilitate inter-connectivity between branches
and link up with on line system.
- The bank has also recently signed up as a depository participant, under the newly set up NSDL,
wherein the members clearing accounts settlement for dematerialised shares can be done through
the bank.
- HDFC Bank, one of the nine new-generation private sector banks, has planned to set up an allIndia on-line automated teller machine (ATM) network.
- HDFC Bank proposed to launch tele-banking for the first time in June in Mumbai at its
chandiveli branch.
- HDFC Bank has drawn up plans to become a niche player in corporate banking by sticking to
top-rung corporates.

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- HDFC Bank has become the first private sector bank to conclude a structured interest rate
option deal.
- HDFC Bank has launched its Versova branch, the 11th branch in Mumbai.
- HDFC Bank, as part of its expansion plans in the South, has opened another branch in Chennai.
- HDFC Bank has entered into strategic alliances with 10 overseas banks to provide customers
with a wide range of derivatives including interest rate and foreign currency swaps.
- HDFC Bank on October 14 introduced ATMs that converse in a regional language.
- HDFC Bank has introduced the Freedom Account for the average retail customer located in the
major metros as a means to wean away the middle-income market from nationalised banks.
- HDFC Bank has launched an account in all its 28 branches across India that seeks to free
depositors from minimum balance requirement, for the first time in the country.
- HDFC has introduced a new loan product for the payment of betterment fees announced by the
Bangalore Mahanagar Palika. - HDFC Bank is all set to launch its debit card by April 1998.
1998- HDFC Bank has tied up with the Ahmedabad Stock Exchange (ASE) to act as its clearing
bank.
- HDFC Bank proposes to strengthen its branch network in Calcutta with the addition of two new
branches in the first quarter of the next fiscal.
- HDFC Bank has signed an agreement with the National Stock Exchange (NSE) which will give
it a second charge over the brokers deposit for providing loan against share facility to NSE
brokers.
- The bank has also entered into a similar understanding with the Bombay Stock Exchange (BSE)
whereby the bourse will provide support for recovery of money against the card for loan against
share facility.
- The bank has also entered into `Cirrus' arrangements by which all master card holders across
the globe will be able to transact at HDFC Bank in India.
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- The bank will also provide phone-banking facility in Bangalore. HDFC has tied up with Visa
International to offer its Debit Card. - HDFC Bank Ltd has entered into a memorandum of
understanding for a strategic business collaboration with Chase Manhattan Bank.
- HDFC Bank has become the first bank in India to link up its automated teller machine (ATM)
network with all the three major payment systems world-wide.
- HDFC Bank will be the first bank in the Asia-Pacific region to connect the American Express
(Amex) payment system.
- The HDFC Bank is expanding its ATM network to connect to American Express Interchange
based in Phoenix, Arizona, USA. With this connectivity, HDFC Bank has become the first bank
in the Asia-pacific region to connect to the Amex Interchange.
- HDFC Bank was the first to sign up with AMEX in December of 1998.
- The Bank has tied up with ITC Threadneedle Mutual Fund to provide its investors with the
High Interest Fund (HIF), a facility to encash their units through the bank's Automated Teller
Machines in addition to a cheque book facility also to be provided by the bank.
- Sony India Ltd (SIL) has joined hands with HDFC Bank to work out an innovative car finance
package under which a sony car audio system would be installed to a new car for no additional
upfront cash outflow.
- The bank has decided to issue 1,33,10,000 equity shares of Rs. 10 each to HDFC and a whollyowned subsidiary of it at a price of Rs. 94 per share.
- The bank will also issue 13,70,000 equity shares to India Private Equity Fund and 51,20,000
shares to Indocean Financial Holding, the two equity funds controlled by Chase Manhattan
Bank.
- HDFC Bank, has tied up with BPL Ltd to offer Internet-enabled supply-chain management and
business-to-consumer (B2C) e-commerce services to corporates.
- Hutchison Max Telecom and HDFC Bank introduced the country's first-ever mobile-banking
services in the city.
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2000- HDFC Bank also signed a memorandum of understanding with Singapore Telecom's ecommerce arm Sesami.Com Pvt Ltd. - The Bank latter also entered into a partnership agreement
with National Computer Systems, the e-commerce unit of Singtel.
- A new company called SESAMi.com (India) has been formed by a strategic alliance between
HDFC Bank and Singapore Telecom's e-commerce company SESAMi.com, to offer e-commerce
solutions for the Indian market.
- HDFC Bank has a tie-up with Maxtouch for giving the facility to the latter's customers in
Mumbai. This is the first and only service of this sort in the country, he said.
- HDFC Bank is also launching an online electronic banking solution called Enet which will
allow corporates to access their accounts over the net and carry out trade related transactions and
cash management functions.
- HDFC Bank entered into a tie-up with Telco by which the bank would provide preferential
financing options for Tata's range of passenger cars including the Indica, Sumo, Safari, Estate
and Sierra.
- HDFC Bank allotted 1.98 crore shares of Rs 10 each at an issue price of Rs 94 per share to
promoters and strategic investors on March 29.
- HDFC Bank is also set to become the first bank in the country to offer wireless application
protocol (WAP) services to customers.
- SkyCell Communications Ltd, one of the two cellular service providers in Chennai, has
launched `Sky Banking', for which the company has tied up with ICICI Bank and HDFC Bank.
- The bank has tied up with 12 utility companies nationwide including BSES, MSEB, BEST,
Orange, BPL and MTNL.
- The Bank has tied up with financial portals, e-brokerages and the National Stock Exchange to
enable broker payments for e-broking ventures. - The Bank has set up 100 new electronic data
capture (EDC) terminals in Mumbai. - HDFC Bank has launched its first B2C payment gateway
which allows Visa and MasterCard credit card-holders to do transaction online and realtime. CYBERITMALL.COM has joined hands with HDFC Bank to provide VISA/MasterCard users
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with an online payment gateway solution to enable them to have a secure eshopping experience.
- HDFC Bank plans to extend its mobilephone banking services introduced in select metros to
mobile phone broking when it introduces its Internet on-line trading in July. - HDFC Bank and
portal clickforsteel.com have signed a memorandum of understanding for offering online credit
and services to facilitate `post transaction' activities through the portal's `allied services
providers' programme. - Indianfoline.com signed an agreement with HDFC bank for the use of
payment gateway to enable online financial transactions.
- HDFC Bank, in association with cellular service provider Orange, has launched the entire range
of mobile banking services and mobile commerce services using wireless application protocol
(WAP) technology.
- The Company has introduced a new scheme whereby it will provide loans to individuals for
payment of self assessment tax on their properties in Bangalore.
- The Foreign Investment Promotion Board has cleared the proposal of the HDFC Group to enter
into a joint venture with Singapore Telecom's e-commerce company for providing a
comprehensive range of business-to-business e-commerce solutions to companies in India.
- The Company proposes to pick up an equity stake in Softcell Trade and Technologies Ltd., a
Mumbai-based software company.
- BPL Mobile has tied up with HDFC Bank to offer Internet banking through the mobile phone.
- HDFC Bank launched `eInstant Car Loans' a new scheme for offering customers a range of netenabled loan products.
- HDFC Bank launched depository services on the net.
- HDFC Bank tied up with NSE.IT, a wholly owned subsidiary of the National Stock Exchange,
for providing payment gateway services for the latter's Internet trading operations.
- HDFC Bank has been identified as the best domestic commercial bank for the second
consecutive year by FinanceAsia.com, which provides a network for financial decision makers.

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- The Mumbai-based Geojit Securities Ltd. has tied up with HDFC Bank for Internet trading of
shares.
- Calcutta's cellular services provider Modi Telstra, and HDFC Bank have entered into a
collaboration to provide mobile commerce in Calcutta.
- HDFC Bank has got the Kerala-based Nedungadi Bank as its first customer for its new joint
venture company with I-Flex Solutions.
- HDFC Bank has set a target of attaining a business of over Rs 15,000 crore this fiscal mainly
through expansion and new product launches, including a credit card.
- HDFC Bank, in association with Tata Cellular, has launched Mobile Commerce Service, for
customers in Hyderabad and Vishakaptnam.
- HDFC Bank has tied up with about 25 equity brokerages for enabling third party transfer of
funds and securities through its business-to-business portal -- `e-Net'.
- The Bank has entered into an alliance with Deloitte Haskins and Sells, a member firm of
Deloitte and Touch, to offer banking services to its non-resident Indian customers.
- HDFC Bank has launched its 123rd outlet at Delhi Stock Exchange building at Asaf Ali Road.
- The Bank proposes to acquire up to 24.5 per cent stake in the MIEL e-Security Pvt. Ltd., which
is engaged in the business of developing and marketing of security products and services for a
range of e-commerce and enterprises security applications.
- The Bank has tied up with Rajan Raheja-owned Hathway for providing banking at home as part
of the Net-over-cable initiative of the latter in Mumbai. - HDFC Bank launched its on-line bill
payment facility in alliance with the Maharashtra State Electricity Board has also begun to offer
bridge loans against fixed deposits of parent Housing Development Finance Corporation the
financial institution.
- HDFC Bank has tied up with portal brainvisa.com to retail education loans to students. - The
Gujarat Cellular operator Fascel, has signed up with the HDFC Bank to introduce mobile
commerce for the first time in the State.
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- HDFC Bank has tied up with BPL Mobile for mobile commerce facility.
- CricketNext.com, a sports e-commerce site has tied up with HDFC Bank to provide an on-line
payment gateways and marketing opportunities for a wide range of cricket sports gear on its online shop BatNext.
- Singapore-based Growasia.com has entered into an understanding with HDFC Bank and credit
rating agency Icra, for picking up equity in the company's Indian subsidiary Gasia.com.
- The Bank has launched `Freedom - The e-Age Savings Account' for cellular phone users.
- Spice Cell has tied up with Citibank N A, HDFC Bank and ICICI Bank for mobile bill
settlements.
- HDFC Bank and Cosmos Bank launched a co-branded ATM card.
- The Chatterjee Group-promoted Captech Online Ltd. has signed memorandum of
understanding with HDFC Bank and UTI Bank for setting up a payment gateway for its debt
negotiation platform, Riskxpress.com.
- HDFC Securities Ltd., promoted by the HDFC group with equity participation from the
Housing Development Finance Corporation Ltd., HDFC Bank and Chase Capital Partners, has
launched its brokerage services for retail investors in the Capital.
- The HDFC Bank and Airtel launched their mobile-banking service through WAP in Delhi.
- HDFC Bank has launched wireless application protocol-based mobile-banking in Coimbatore
and Trichy in association with Aircel.
2001- The Bank has opened its first branch in Aurangabad.
- HDFC Standard Life Insurance has entered into a memorandum of understanding with the
Chennai-based Indian Bank.
- The Bank has launched the international Maestro debit card in association with Master Card.
- HDFC Bank will launch its credit card in June through link-ups with MasterCard and Visa.

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- LTtrade.com has entered into a strategic tie-up with HDFC Bank to provide Net banking
services to online investors.
- Standard Chartered Bank, HDFC Bank and Bharat Petroleum Corporation have joined the
eCash Forum which has been set up by the Smart Card Forum of India.
- HDFC Bank has launched a new campaign for its eage savings account.
- HDFC Bank entered into a strategic tie-up with Tally Solutions Pvt. Ltd. to offer online real
time accounting services to small and medium enterprises.
- The Bank has opened four ATMs outlets in Bangalore at Coles Road, RT Nagar, Rajaji Nagar
and Jaya Nagar on March 26.
- HDFC Standard Life Insurance has launched a `Development Insurance Plan' a low cost life
insurance product developed specifically to meet the needs of economically weaker sections.
- Two Directors, Mr. S.S. Thakur and Mr. Amit Judge, have resigned from the board of the bank
effective from March 30.
- HDFC Bank files with US regulators to list more than 11 million American Depositary Shares
on the New York Stock Exchange.
2002- HDFC Bank unveiled a new online account aggregation service `OneView'.
- HDFC launched 'One View' service to customers
- HDFC Bank launched its 9th branch in Karnataka.
- HDFC opens its branch in Mangalore.
- HDFC Bank unveils Silver card in Hyderabad.
- HDFC Bank opens first overseas representative office.
- HDFC Bank unveils gold card
- Mediclaim facilities to HDFC Bank gold cardholders.

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- HDFC Bank Ltd has informed BSE that Mr Deepak Satwalekar has submitted his resignation
as Director of the Bank. The Board of Directors has accepted the same. The Board of Directors
has co-opted Mrs Renu Karnad as Additional Director of the Bank.
- Mrs. Renu Karnad has been co-opted as an Additional Director of the Bank. Mrs Karnad shall
represent the promoters of the bank i.e. HDFC Ltd. Also Mr. Deepak Satwalekar, Managing
Director of HDFC Standard Life Insurance Company Ltd, has been on the Board of the Bank as
nominee of HDFC Ltd since September 12, 1994 and shall complete the period of 8 yrs before
the next scheduled board meeting. In view of the provisions of the Banking Regulation Act,
1949, Mr. Satwalekar has submitted his resignation as Director of the Bank and the Board has
accepted the same.
- HDFC Bank launched new products to its wealth management programme to increase its
customer base. The bank introduced a non-interactive product named "Financial Planner", which
would be available for all its customers for an annual fee starting from Rs 10,000. The bank is
offering fee based advisory programme to the "mass affluent" segment, which was earlier offered
to high net worth customers. The wealth management programme would cater to individual
needs taking into account various factors such as customer's age, financial goals and risk profile,
which includes equity, MFs and debt instruments such as RBI Relief Bonds.
- Orange JV with HDFC Bank.
2003- HDFC Bank unveils resident foreign currency account.
- HDFC Bank unveils co-branded credit card with e-Seva.
- The Board of Directors of HDFC Bank Ltd at their meeting held on January 15, 2003 approved
the appointment of Mr. Arvind Pande as an Additional Director pursuant to section 260 of the
Companies Act, 1956.
- EPFO JV with HDFC Bank for its pension distribution.
- HDFC enters into agreement with HDFC Bank to source housing loans.
- HDFC Bank, IRCTC in tie up for online railway booking.

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- HDFC Bank inks pact with ANB for remittance service

- HDFC Bank introduces 'HDFC Bank Health Plus Credit Card'.
- Uma Krishnan resigns HDFC Bank as country head
- Escotel ties up with HDFC Bank for Global Debit Card.
- HDFC Bank launches India's first mobile payment solution.
- HDFC Bank's debt programme of Rs 400-crore has received triple A (ind) rating from CREDIT
rating agency FITCH.
-Mumbai - HDFC Bank in collaboration with Tally Solutions is planning to launch electronic
data interchange (EDI) system for small and medium enterprises (SMEs).
-Warburg Pincus sells 2% stake in HDFC for Rs 235 cr
- HDFC Bank began selling home loans of its promoter Housing Development Finance
Corporation (HDFC).
-Board approved to allot 4,16,400 equity shares to the employees of the Bank under the
Employee Stock Option Scheme
2004-Mr Ranjan Kapur & Mr Bobby Parikh appointed as Additional Directors
-NMCE inks pact with HDFC Bank for warehouse receipts
- HDFC Bank has entered into an alliance with Clearing Corporation of India Ltd (CCIL). The
tie-up offers the latter's collateral borrowing and lending obligation (CBLO) product to
cooperative banks that are not direct members of the negotiated dealing system (NDS).
-HDFC Bank repurchases HDFC loans worth Rs 208 cr
-Launches Quickremit, a unique online service that enables NRIs in the US to send money to
their relatives in India from the comfort of their homes.
-Andhra Bank has entered into an alliance with HDFC Bank for sharing its network of automated
teller machines (ATMs). On March 29, 2004
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- HDFC Bank and Bahraini Saudi Bank (BSB) have announced an alliance to cater to service the
needs of the non-resident Indians (NRIs) in Bahrain.
- HDFC bank Ltd has informed that Dr (Mrs) Amla Samanta has ceased to be a director of the
Bank wef April 25, 2004.
- HDFC Bank launches new scheme for Maruti 800 buyers, providing 85 per cent finance on the
on-road price of the car for seven years.
-HDFC Bank wins Asiamoney award for Best Domestic Bank
-HDFC Bank managing director Aditya Puri has been awarded the management man of the year
by the Bombay Management Association (BMA)
-HDFC Bank has entered into an agreement with Shrachi Securities Ltd, the flagship company of
the Kolkata-based Rs 300-crore Shrachi Group, for financing of multi-utility vehicles all over
India
-HDFC Bank has launched an online bill payment facility for its customers who are also
subscribers to Tata Teleservices
-HDFC Bank join hands with NCR Corporation to offer managed ATM services
- IKF Finance Ltd has entered in to a Joint Lending Arrangement with HDFC Bank Ltd
2005-TMB forges alliance with HDFC Bank
-HDFC Bank inaugurates first ATM in Hotel
- HDFC Bank ties up with the International Bank of Qatar (IBQ) to launch banking services in
Qatar.
- HDFC Bank launches loyalty rewards programme for its debit and credit cardholders under the
name Insta Wonderz.
-HDFC Bank along with MasterCard International launched credit card targeted at small and
medium-sized enterprises

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-HDFC Bank has tied up with US-based WL Ross and company LLC for investing in corporate
restructuring
-HDFC Bank unveils credit card for farmers
2006-HDFC sets up two more branches in AP
- Osim to join hands with HDFC Bank for consumer loans
- HDFC Bank inaugurates VbV facility for online shopping
- HDFC sets up two more branches in AP
2007-HDFC Bank has signed an agreement with Tata Pipes to offer credit facilities to farmers
across the country.
-HDFC Bank Ltd has appointed Mr. Pandit Palande as an additional Director of the Bank at the
Board Meeting held today i.e. on 24th April 2007.
- HDFC Bank Ltd has informed that the Board of Directors of the Bank at its meeting held on
October 12, 2007, has been appointed Mr. Paresh Sukthankar & Mr. Harish Engineer as
Executive Directors on the Board of Directors of the bank. Mr. Sukthankar & Mr. Engineer have
been senior employees of the Bank since 1994 and have held various positions of responsibility.
The above appointments as Executive Directors of the Bank are subject to approval of Reserve
Bank of India and of the Bank's shareholders.
2008 - HDFC Bank Ties Up With Postal Department, Extends Rural Reach
- HDFC Bank Wins Nasscom IT User Award The Year'
- HDFC Bank Opens Its First Overseas Branch In Bahrain
- HDFC Bank and Centurion Bank of Punjab merger at share swap ratio of 1:29
- HDFC Bank Launches Indias First Rural Banking BPO At Tirupathi
- HDFC Bank Launches Indias First "Online Market Linkage Programme" For Self Help
Groups
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2009 - HDFC Bank Bags Asiamoney Award for the "Best Domestic Bank" - HDFC Bank offers
electronic payment collection facility to Guruvayoor Devaswom. - HDFC Bank launches
Meritus Scholarship Programme. - The Asian Banker declares HDFC Bank the Best Retail
Bank
2010- With a view to attract long term deposits and prevent premature withdrawal when the
interest rates peak, HDFC, the housing finance major, has decided to pay variable interest rate on
recurring deposits.
- HDFC Bank on Feb 19 increased the fixed deposit rates by up to 150 basis points across
maturities, a move that follows the Cash Reserve Ratio hike of 75 basis points by the Reserve
Bank of India last month.
- HDFC rolls out systematic savings plan with variable interest rates
- HDFC Bank replaces ICICI as Number 1 private retail bank in India
- HDFC ties up with UAE bank for online remittances
-HDFC Bank approved the appointment of Mr. C. M. Vasudev, who is a Director of the Bank, as
Non Executive Chairman of the Bank on a part time basis for a period of three years effective
July 06, 2010 in replace of Mr. Jagdish Capoor retires from his services on the same date.
- HDFC Bank plan to add 250 new branches to its network over next 2 years.
2011- HDFC Bank looking at 3G services to boost mobile banking share.
- The Housing Development Finance Corporation Limited (HDFC), one of the largest private
sector banks in India, which had a network of 1,725 branches as at March 2010, opened 275 new
branches in the current fiscal. The bank now has a total network of 2,000 branches spread across
1,000 cities. The bank also acquired Centurion Bank of Punjab in 2008, which adds around 404
branches to its network.
- The Asian Banker magazine has declared that the strongest bank in Asia Pacific region is
HDFC

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- India's private banking major ,HDFC Bank has launched its new credit card offering called
Infinia in direct competition with global credit card major ,American Express(Amex) .The new
HDFC product is exclusively for the bank's high net worth and super rich clients in the country.
2012- The third-largest US lender by assets, Citigroup Inc has sold its complete 9.85 per cent
stake in Housing Development Finance Corporation Ltd (HDFC) for USD 1.9 billion.
- HDFC Bank which is a major Indian financial services company based in Mumbai stated that
they have collaborated with Punjab Grains Procurement Corporation Ltd (PUNGRAIN) with an
aim to make easy and faster payment to its agents who are dealing in agricultural products in
about 350 mandis in Punjab.
- HDFC Bank ties up with IOC to offer banking services in rural areas
- Carlyle offloads entire stake in HDFC for $841 mn through bulk deals
- HDFC Bank opens office in Abu Dhabi
- HDFC Bank has launched its mobile banking application in Hindi on targeting about 560million

Hindi-speaking population of India.

- HDFC Bank opens 87 branches in Punjab, Haryana in a single-day.

4.4.2 CRM in HDFC Bank:

Based on market capitalization HDFC Bank is currently the largest private bank in the country
with more than 25 million customers. It has an extensive distribution network of more than 2500
branches spread across 1399 cities and more than 55,000 employees.

Around three years back, in order to retain its competitive advantage, the bank felt that it needed
to better its customer engagement processes. Unlike other banks, HDFC Bank did not want to
buy growth at the expense of its profitability. Management at the bank knew that only unparallel

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customer experience could provide a sustained edge much needed to maintain its growth rate in
spite of increasing balance sheet size.

The bank found an answer in a two prong strategy which included raising the bar for its internal
processes (although the bank were already outperforming the industry) to preserve profitability
and ensuring consistency of information and actions across channels to create an unmatched
customer experience - gaining trust and loyalty to sustain the growth trajectory.
However, despite the clarity in strategy, execution was a challenge. Such a radical strategy was
first of its kind and faced tremendous risk due to inherent complexity and technological
challenges, considering the transformation had to happen across a geographically distributed
team, without hampering business and at a pace that kept it relevant. Also it needed to
streamlining deliveries keeping in mind the readiness and the ground realities.

Another challenge was leveraging the data warehouse to build intelligence on customers and
deploying this information at various touch points to help maximize customer life cycle value.
Technologically, scalability of the system given the large data volumes, 55,000+ user base,
workflow complexities, integration, synchronization and incremental updates was no less
challenging either.

Aware of ground realities, the bank focused on finding a solution with an architecture capable of
managing over 55,000 users serving over 25 million customers. It also needed an implementation
partner with extensive banking domain knowledge and capability to execute the vision.

The bank selected CRM next's solution which promised to fulfill the banks needs. Some of the
key capabilities offered by the solution included:

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4.5. ICICI Bank Profile

ICICI Bank Ltd
BSE: 532174 | NSE: ICICIBANK | ISIN: INE090A01013
Market Cap: [Rs.Cr.] 121,843 | Face Value: [Rs.] 10
Industry: Banks - Private Sector

ICICI (Industrial credit and investment corporation of India) Bank Ltd is a major banking and
financial services organization in India. The Bank is the second largest bank in India and the
largest private sector bank in India by market capitalization. They are a publicly held banking
company engaged in providing a wide range of banking and financial services including
commercial banking and treasury operations. The Bank and their subsidiaries offers a wide range
of banking and financial services including commercial banking, retail banking, project and
corporate finance, working capital finance, insurance, venture capital and private equity,
investment banking, broking and treasury products and services. They offer through a variety of
delivery channels and through their specialised subsidiaries in the areas of investment banking,
life and non-life insurance, venture capital and asset management. The Bank has a network of
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2,035 branches and about 5,518 ATMs in India and presence in 18 countries. They have
subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore,
Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.
The Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock
Exchange of India Limited and their American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange. The Banks is the first Indian Bank listed on New York Stock
Exchange. ICICI Bank Ltd was incorporated in the year 1994 as a part of the ICICI group with
the name ICICI Banking Corporation Ltd. The initial equity capital was 75.0% by ICICI and
25.0% by SCICI Ltd, a diversified finance and shipping finance lender of which ICICI owned
19.9% at December 1996. Pursuant to the merger of SCICI into ICICI, ICICI Bank became a
wholly-owned subsidiary of ICICI. In September 10, 1999, the name of the Bank was changed
from ICICI Banking Corporation Ltd to ICICI Bank Ltd In March 10, 2001, ICICI Bank
acquired Bank of Madura, an old private sector bank, in an all-stock merger. ICICI Ltd along
with their wholly owned retail finance subsidiaries, namely ICICI Capital Services Ltd and ICICI
Personal Financial Services Ltd amalgamated with the Bank with effect from May 3, 2002. In
May 2003, the bank acquired the entire paid-up capital of Transamerica Apple Distribution
Finance Pvt Ltd (now known as ICICI Distribution Finance Pvt Ltd) which primarily engaged in
financing in the two-wheeler segment. In September 12, 2003, the Bank incorporated ICICI
Bank Canada as a 100% subsidiary company. In May 2005, the Bank acquired the entire paid-up
capital of Investitsionno-Kreditny Bank, a Russian bank with their registered office in
Balabanovo in the Kaluga region and a branch in Moscow. Thus, IKB became a subsidiary of
Bank with effect from May 19, 2005. In August 2005, the Bank acquired additional 6% of the
equity share capital of Prudential ICICI Asset Management Company Ltd and Prudential ICICI
Trust Ltd from Prudential Corporation Holdings Ltd and thus these two companies became the
subsidiaries of the Bank. During the year 2006-07, ICICI Bank Canada incorporated ICICI
Health Management Inc as a subsidiary company. In April 2007, Sangli Bank Ltd merged with
the Bank with effect from April 19, 2007. In 2007 June, the Bank entered into an agreement with
networking solutions provider GTL Ltd to lease out their call centre facility at Mahape worth of
around Rs 100 crore for a period of 25 years. During the year 2007-08, the Bank increased their
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branches & extension counter from 755 Nos to 1,262 Nos, including the addition of about 200
branches through the merger of Sangli Bank. They increased their ATM network from 3,271
ATMs to 3,881 ATMs. They launched mobile banking service enabling a wide range of banking
transactions using the mobile phone. During the year 2008-09, the Bank increased their branches
& extension counter from 1,262 Nos to 1,419 Nos. They also received licenses for 580 additional
branches from RBI. They increased their ATM network to 4,713 ATMs from 3,881 ATMs. In
April 22, 2009, ICICI Prudential Pension Funds Management Company Ltd was incorporated as
a subsidiary company of ICICI Prudential Life Insurance Company Ltd. During the year 200910, the Bank increased their branches & extension counter from 1,419 Nos to 1,707 Nos. They
also increased their ATM network from 4,713 ATMs to 5,219 ATMs. ICICI Wealth Management
Inc., a subsidiary of ICICI Bank Canada, has been dissolved effective December 31, 2009. In
January 2010, the Bank and First Data, a company engaged in electronic commerce and payment
services, formed a merchant acquiring alliance and a new entity named ICICI Merchant Services,
81% owned by First Data, was formed, which acquired ICICI Bank's merchant acquiring
operations for a total consideration of Rs. 3,744 million. In May 2010, the Bank approved the
scheme of amalgamation of Bank of Rajasthan Ltd with the Bank through share-swap in a noncash deal that values the Bank of Rajasthan at about Rs 3,000 crore. Each 118 shares of Bank of
Rajasthan will be converted into 25 shares of ICICI Bank Ltd. In August 2010, as per the scheme
of amalgamation, Bank of Rajasthan was amalgamated with the Bank with effect from the close
of business on 12 August 2010. The merger of Bank of Rajasthan added over 450 branches to the
network. Including these, their branch network increased from 1,707 branches at March 31, 2010
to 2,529 branches at March 31, 2011. They also increased their ATM network from 5,219 ATMs
at March 31, 2010 to 6,055 ATMs at March 31, 2011.

4.5.1 History-ICICI Bank:

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%
through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs
listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors
in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
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Government of India and representatives of Indian industry. The principal objective was to create
a development financial institution for providing medium-term and long-term project financing
to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI
Bank would be the optimal strategic alternative for both entities, and would create the optimal
legal structure for the ICICI group's universal banking strategy. The merger would enhance value
for ICICI shareholders through the merged entity's access to low-cost deposits, greater
opportunities for earning fee-based income and the ability to participate in the payments system
and provide transaction-banking services. The merger would enhance value for ICICI Bank
shareholders through a large capital base and scale of operations, seamless access to ICICI's
strong corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and access to
the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI
and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services
Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve
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Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.
ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and
employees.

4.5.2 CRM in ICICI Bank:

Focus on ICICI Banks Initiatives The use of Customer Relationship Management (CRM) in
banking has gained importance with the aggressive strategies for customer acquisition and
retention being employed by banks in todays competitive milieu. This has resulted in the
adoption of various CRM initiatives by these banks to enable them achieve their objectives. The
steps that banks follow in implementing Customer Relationship Management (CRM) are:
Identifying CRM initiatives with reference to the objectives to be attained (such as increased
number of customers, enhanced per-customer profitability, etc.), Setting measurable targets for
each initiative in terms of growth in profits, number of customers, etc. and Evaluating and
choosing the appropriate Customer Relationship Management (CRM) package that will help the
company achieve its CRM goals (a comparison of pay-offs against investments could be carried
out during the evaluation exercise). Customer Relationship Management (CRM) has been
deployed in retail banking. The challenges in managing customer relations in retail banking are
due to the multiple products being offered and the diverse channels being used for the
distribution of the products. Customer expectation from banks can be summed up as: Any time
anywhere service, personalized offers, and lower payouts. Aggressive marketing and
promotions on the part of the banks have resulted in most customers happily switching loyalties
to enjoy better privileges, thereby making the task of retaining them more difficult for the banks.
The use of Customer Relationship Management (CRM) in banking has been essentially done for
the following purposes: Targeting customers: It is necessary for banks to identify potential
customers for approaching them with suitable offers. The transactional data that is generated
through customer interactions and also by taking into account the profile of the customer (such
as the lifecycle stage, economic background, family commitments,...
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4.6.1Profile-State Bank of India

BSE: 500112 | NSE: SBIN | ISIN: INE062A01012
Market Cap: [Rs.Cr.] 140,200 | Face Value: [Rs.] 10
Industry: Banks - Public Sector
Discuss this stock
Company Profile

State Bank of India is the largest state-owned banking and financial services company in India.
The Bank provides banking services to the customer. In addition to the banking services, the
Bank through their subsidiaries, provides a range of financial services, which include life
insurance, merchant banking, mutual funds, credit card, factoring, security trading, pension fund
management and primary dealership in the money market. The Bank operates in four business
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segments, namely Treasury, Corporate/ Wholesale Banking, Retail Banking and Other Banking
Business. The Treasury segment includes the investment portfolio and trading in foreign
exchange contracts and derivative contracts. The Corporate/ Wholesale Banking segment
comprises the lending activities of Corporate Accounts Group, Mid Corporate Accounts Group
and Stressed Assets Management Group. The Retail Banking segment consists of branches in
National Banking Group, which primarily includes personal banking activities, including lending
activities to corporate customers having banking relations with branches in the National Banking
Group. SBI provides a range of banking products through their vast network of branches in India
and overseas, including products aimed at NRIs. The State Bank Group, with over 16,000
branches, has the largest banking branch network in India. The State bank of India is the 10th
most reputed company in the world according to Forbes. The bank has 156 overseas offices
spread over 32 countries. They have branches of the parent in Colombo, Dhaka, Frankfurt, Hong
Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New
York, Osaka, Sydney, and Tokyo. They have offshore banking units in the Bahamas, Bahrain,
and Singapore, and representative offices in Bhutan and Cape Town. State Bank of India was
incorporated in the year 1955. The Bank traces their ancestry to British India, through the
Imperial Bank of India, to the founding in 1806 of the Bank of Calcutta, making them the oldest
commercial bank in the Indian Sub-continent. The Government of India nationalized the Imperial
Bank of India in the year 1955, with the Reserve Bank of India taking a 60% stake, and name
was changed to State Bank of India. In the year 2001, the SBI Life Insurance Company was
started by the Bank. They are the only Bank that have been permitted 74% stake in the insurance
business. The Bank's insurance subsidiary 'SBI Life Insurance Company' is a joint venture with
Cardif S.A in which Cardif holds 26% of the stake. During the year 2005-06, the bank introduced
'SBI e-tax' an online tax payments facility for direct and indirect tax payment. They also
launched the centralized pension processing. The Bank made a partnership with Tata
Consultancy Services for setup C-Edg Technologies and consulting services to the banking,
financial services and insurance industry. The bank was noted as 'The most preferred bank' in a
survey by TV 18 in association with AC Nielsen-ORG Marg. Also, the Bank was voted as 'The
most preferred housing loan provider' in AWAAZ consumer awards for the year 2006. In the
customer loyalty survey 2006-07 conducted by 'Business World', the Bank was ranked number
one in all parameters of customer satisfaction, service orientation, customer care/ call center,
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customer loyalty and home loans. SBI Funds was judged 'Mutual fund of the year' by CNBC/TV18/CRISL. The Bank introduced new products and services such as web-based remittance,
instant fund transfer, online-trading and comprehensive cash management. During the year 200708, the Bank launched 965 branches all over the country. They inaugurated a new state-of-the art
Dealing Room with online connectivity to all active forex intensive Branches at Corporate
Centre in Mumbai. They launched a new product, Construction Equipment Loan to cater to
construction Companies. Also, they introduced new products such as SBI Reverse Mortgage
Loan and SBI Home Plus in the areas of Home Loans. During the year, the RBI transferred their
entire shareholding in the Bank representing 59.73% of the issued capital of the Bank to the
Government of India. The Bank acquired 92.03% of equity of Global Trade Finance Ltd.
Consequently, GTFL became a subsidiary of the Bank. They signed an MoU with the Indian
railways for installing ATMs at 682 railway stations. In March 2008, the Bank opened their
10,000th branch and became only the second bank in the world to have more than 10,000
branches after China's ICBC. During the year 2008-09, the company launched Import factoring,
a new product in association with SBI Factors & Commercial Services Ltd. They increased the
number of branches for retail sale of gold coins from 250 to 518. Also, they re-launched Gold
Deposit Scheme at 50 branches to mobilize gold from domestic market for deployment as metal
loans to jewellers. During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup
District) in Assam. They introduced three new products viz., SBI Special Home Loan, SBI
Happy Home Loan and SBI Lifestyle in response to the stimulus package announced by the
Government of India. Also, they entered into an exclusive arrangement with TATA Motors for
handling the booking process of TATA 'Nano' cars. During the year, the Bank launched on their
web-site an on-line application form for registering Auto Loan enquiries and expeditiously
monitoring and converting these leads into Auto Loans. Also, they launched 'e-invest' for the
ASBA (applications supported by blocked accounts) to aid investors for their equity
subscriptions, IPO and Rights applications. During the year, the Bank set up a custodial services
company namely SBI Custodial Services Pvt. Ltd., in joint venture with Societe Generale,
France. They signed letter of intent for setting up of joint venture company for undertaking
General Insurance Business. Also, they divested 10% equity stake in its wholly owned subsidiary
SBI Pension Fund Pvt. Ltd at cost in favour of its subsidiaries. In October 2008, the Bank signed
an MoU with State General Reserve Fund (SGRF) of Oman, for a general purpose private equity
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fund. During the year, State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank,
amalgamated with the Bank with effect from August 13, 2008. They signed a joint venture
agreement with Insurance Australia Group for undertaking General Insurance business. Also,
they signed a joint venture agreement with Macquarie Capital Group, Australia and IFC,
Washington for setting up an Infrastructure fund of USD 3 billion for investing in various
infrastructure projects in India. During the year 2009-10, the Bank opened 1,049 branches, out of
which branches were opened in metro and urban areas with a view to increase the Bank's reach
and be more accessible to customers. In July 2009, SBI introduced 'SBI Loan to Affluent
Pensioners' enabling the government pensioners to avail personal loans upto Rs 3 lakh. During
the year, the Bank designed a special package, the Defence Salary Package, for personnel of the
three Armed Forces i.e. the Army, Navy and Air Force who maintain their Salary accounts with
them. As of March 2010, the Bank had 12,496 branches and 21,485 Group ATMs. In June 2009,
the company increased their shareholding in Nepal SBI Bank Ltd to 55.02% and thus Nepal SBI
Bank Ltd became a subsidiary of the Bank with effect from June 14, 2009. In May 2010, the
Bank selected consortium of Elavon Incorporation, USA and Visa International, USA as their
joint venture (JV) partner for Merchant Acquiring Business. They set up a wholly owned
subsidiary, namely SBI Payment Services Pvt Ltd for conducting Merchant Acquiring Business.
In August 2010, State Bank of Indore was amalgamated with the Bank as per the scheme of
amalgamation approved by the Central Board. During the year 2010-11, the Bank introduced 2
new products, namely 'Pushpa Ullas' and 'Arthias Plus' on pilot basis. They made substantial
progress in establishing itself as a leading PE fund player of the country. Also, they also signed a
Joint Venture agreement with State General Reserve Fund (SGRF) of Sultanate of Oman, a
sovereign entity, to set up a general purpose private equity fund with an initial corpus of USD
100 mn, expandable further to USD 1.5 bn. During the year, the Bank opened 576 new branches
besides merger of 470 branches of erstwhile State Bank of Indore. Also, they opened 14 foreign
offices during the year, taking the total to 156. In July 1, 2010, the Bank launched their 'Green
Channel Counter' at select branches across the country. In General Insurance business, the Bank
launched limited operations in April 2010 for the Corporate and Mid Corporate customers based
at Mumbai, and it was expanded to six other major locations in July 2010. In the Retail segment,
the Bank launched their Long Term Home Insurance business at Mumbai in October 2010, which
was gradually extended to cover 56 RACPCs and RASMECCs. General Insurance SME business
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was launched on a pilot basis in Mumbai and Chennai in February 2011. During the first quarter
of the financial year 2011-12, the Government of India issued the 'Acquisition of State Bank of
India Commercial & International Bank Ltd. vide notification dated July 29, 2011. Consequent
to the said notification, the undertaking of State Bank of India Commercial & International
stands transferred to and vest in State Bank of India with effect from July 29, 2011

4.6.2 History-SBI Bank:

1955 - On 1st July State Bank of India was constituted under the State Bank of India Act 1955,
for the purpose of taking over the undertaking and business of the Imperial Bank of India. The
Imperial Bank of India was founded in 1921 under the Imperial Bank of India Act 1920. The
Bank transacts general banking business of every description including, foreign exchange,
merchant banking and mutual funds. 1959 - On September State Bank of India (Subsidiary
Bank) Act was passed. On October State Bank of Hyderabad become the first subsidiary of SBI.
1960 - During this period, State Bank of Jaipur, State Bank of Bikaner, State Bank of Indore,
State Bank of Travancore, State Bank of Mysore, State Bank Patiala and State Bank of
Saurashtra became subsidiaries of the bank.
1962 - The Bhor State Bank Ltd was Amalgamated with the Bank bring the total number of
minor State associated banks so amalgamated to five. A scheme for amalgamation of the Bank of
Aundh Ltd., was also approved. On 20th August, the Unit Bank Ltd. Chennai was taken over by
the Bank.
1963 - In october Branch in London become bankers to the Indian High Commission, thereby
taking over a function till then performed by the office of RBI. Of the other business transacted
by the Branch, an important aspect was medium term loans mostly to Indian shipping companies.
1969 - On November 8th the Bank of Behar Ltd was amalgamated.
1972 - A merchant banking division was set up in the central office to cater to promotional
needs of the corporate sector.

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1977 - During the year bank introduced the Perennial Pension Plan Scheme under which if the
depositors make a regular monthly payment of a fixed amount for a period of 84 to 132 months,
they become eligible from the 86th and 134th months respectively for getting a monthly pension
of predetermined amount forever.
In order to meet all the developmental needs of the villages including their social and cultural
needs, the bank launched an integrated rural developement programme, aimed at not only
covering the credit needs of agriculture and agricultural activities and village industries, but also
housing and social activities.
1980 - Bank introduced the cash Certificate Scheme under which deposit certificate are issued
for a fixed period on payment of the issue price specified for the respective maturity period and
the face value corresponding to the issue price plus interest compounded at quarterly intervals is
paid on maturity. The certificates are issued for the face value of Rs 100, Rs 1000, Rs 10,000 and
Rs 50,000 maturing after 29,65,84 and 120 months.
1982 - The Non-Resident Investment Cell was set up, which had streamlined the working
operations of the non-resident investment sections at important centers.
1983 - SBI launched self employment scheme, for providing self-employment to educated
unemployed youth. Educated unemployed youths are encouraged to undertake self-employment
ventures in industry, services and business.
1984 - The bank provide need-based rehabitation assistance to large and medium sick industrial
units.
1985 - During the year, company set up a data bank of sick units available for taken over by
healthy units. With effect from 26th August, the Bank of Cochin Ltd with 108 branches was also
amalgamated with the Bank.
(i) All shares in the Capital of the Imperial Bank of India was vested in the RBI. The SBI was
registered with an Authorised capital of Rs.20 crores, and an issued and paid up capital of
Rs.562,50,000 divided into 562,500 shares of Rs.100 each.

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(ii) Every person who on the 30th June, 1955, was registered as a holder of shares in the
Imperial Bank of India was paid by the Reserve Bank of India.
44,37,500 No. of shares issued at a premium of Rs 160 per share.
1986 - At the end of the year 324 sick units with an outstanding of Rs 1069 crores were
assisted. Of these, 107 units were considered viable and 60 from them were placed under regular
nursing programme.
On 1st August a new subsidiary named SBI Capital Market was functioning independently, took
up leasing business and certain other new services.
100,00,00 No. of shares issued at a prem. of Rs 160 per share.
1987 - Up to the end of the year the bank had sponsored 30 Regional Rural Banks covering 66
backward and underbanked districts in the country.
In terms of deployment, the advances portfolio of overseas offices rose to Rs 5,767 crores.
Investments in inter-bank money markets and also in prime securities amounted to Rs 2,670
crores by the end of the year.
1988 - During the year bank initiated UPTECH an Industrial Technology Group to direct and
guide programmes aimed at facilitating technology upgradation.
Also a scheme to develop enterpreneurship among woman under the name "Stree Shakti" was
launched. Several concessions in respect of margin and and rate of interest have been built into
the package. Three pilot programmes were launched at Chennai, Calcutta, and Hyderabad.
On 20th September, the bank inaugurated `SBINET,' an integrated communication project aimed
at improving customer service, operational efficiency and administrative convenience. The
network has been designed to handle voice, fax data and manages through the trunk routes and
exchanges in important centres.
The bank sponsored 30 RRB's covering 66 divisions in the country. 74 branches were opened
raising the branch network to 2,306.

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1989 - SBICAP, in their capacity as Trustee and Manager of Mutual Fund, launched two scheme
viz., Mangnum Monthly Income Scheme 1989 and Magnum Tax Service Scheme 1990.
During the same period SBI in association with Morgan Stanley Asset Management Inc. of USA,
launched the India Magnum Fund.
1990 - New products launched during the year included a Regular Income Scheme, offering an
assured return in excess of 12% and the first Pure Growth Scheme aimed at capital appreciation.
A Second offshore fund of US $ 12 million called Asian Convertible and Indian Fund was
launched in association with Asian Development Bank, Manila.
During Kharif 1990, the bank introduced an agricultural credit card, known as SBI Green Card to
give greater liquidity and flexibility to farmers in procuring agricultural inputs. The scheme was
introduced on a pilot basis in 125 intensive centre branches.
As at on 31st March, SBIMF had over 3,40,000 Indian investors and about Rs 475 crores by way
of investible domestic funds.
50,00,000 No. of shares issued at a prem. of Rs 160 per share. 1991 - During February the bank
set up a new subsidiary called the SBI Factors and Commercial Serviced Pvt. Ltd. for rendering
factoring services to the industrial and commercial units in Western India.
1992 - The bank sponsored 30 RRBs with a network of 3189 offices covering 102 backward and
under banked districts of the country. A sum of Rs 15.25 crores was contributed towards the
share capital of the RRBs.
During the period bank intoduced `Stockinvest' scheme. Also introduced a `Gyan Jyoti' that
replaced earlier education loan schemes and offers substantial augmented assistance to students
pursuing higher studies. Moreover dedicated NRI branches equipped with State-of-the-art
technology was set up at Mumbai and Delhi to cater to the special needs of NRI residents.
1993 - During the year as a part of its overseas expansion the bank established representative
office in Tashkent.
During December, the bank issued 124,000,000 equity shares of Rs.10 each for cash at a
premium of 90 per share of which 245,00,000 shares each were reserved for allotment on a
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preferential basis to Indian Financial Institutions and Indian Mutual Funds. Balance issued to the
public.
Simultaneously it came out with another issue of 50,00,000 12% unsecured redeemable floating
rate bonds in the nature of promisory notes of the face value of 1000 each. Oversubscription
upon a further amount of Rs 500 crores (in all Rs 1000 crores) was to be allowed. The face value
of each bond would be redeemed at par at the expiry of 10 years from the date of allotment. In
the event that the State Bank decides to exercise its option to call up the bonds they would be
redeemed at the rate of 5% at the end of 5th year, at 3% at the end of 7th year and 1% at the end
of 9th year.
It was proposed to issue 1200,00,000 right equity shares of Rs.10 each at a premium of Rs.50 per
share in the proportion of 3:5. Also another 120,00,000 equity shares of Rs.10 each were to be
issued at a premium of Rs.50 per share to employees on an equitable basis.
250 sick units with the bank were referred to the BIFR including 31 public sector units.
Approved rehabilitation packages being implemented in 85 units and 41 have been
recommended to be wound up. The bank continued to be appointed as the operating agency and
rehabilitation packages were submitted to BIFR in 48 cases.
Equity shares subdivided. 1418,50,000 No. of Equity Shares of Rs. 10 each issued at a prem. of
Rs 90 per share to the public. Another 1319,78,726 shares of Rs 10 each offered at a prem. of Rs
90 per share on Rights basis and to employees.
1994 - 358 sick units with the bank were referred to the BIFR including 55 public sector units.
Approved rehabilitation packages implemented in 87 units.
1,80,463 No. of Shares kept in abeyance were issued.
1995 - 351 sick units with the bank were referred to the BIFR including 66 public sector units.
Approved rehabilitation packages implemented in 112 units.
683 No. of shares kept in abeyance were allotted.
1996 - On 3rd October the Bank Issued 261,45,000 GDRs amounting to 5,22,90,000 equity
shares. 1 GDR is issued to 2 equity shares. The issue price of GDR was US $ 14.15 per GDR.
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1997 - Shares issued to employees of the bank bearing distinctive numbers 46,26,00,001 to
47,46,00,000 will not be good delivery. The rights issue was for 12 crore equity shares at a
premium of Rs.50 aggregating Rs.720 crore in addition to a further issue of 1.2 crore equity
shares of Rs.10 at a premium of Rs.50 aggregating Rs.72 crore for State Bank employees. The
price of the rights had been Rs.60 per share.
After SBI Capital Markets, Manila-based Asian Development bank will pick up 15 per cent
equity stake in the new stock broking subsidiary of State Bank of India to be made operational
by mid-1997. The balance 85 per cent will be subscribed to by SBI.
SBI Securities Ltd the 100 per cent stockbroking subsidiary of SBI, has recently received the
much-awaited letter of incorporation from the Registrar of Companies. Following this, both SBI
and ADB will pick up their respective shares in the new stockbroking firm. SSL will have an
equity base of Rs.50 crore.
The State Bank of India has tied up with GE Capital to float a venture in Mumbai. State Bank
signed the memorandum of understanding with GE Caps in March.
State Bank will tie up with either VISA or Mastercard or even both for the franchise network. GE
Caps through this joint venture will be imparting technology, credit card expertise and payment
card mechanism.
The Reserve bank of India has directed the SBI to set up a $300 million stand-by facility for the
Indian oil corporation.
State Bank of India (SBI) signed an agreement with the National Securities Depository Ltd
(NSDL) for dematerialisation of its shares. Besides, SBI has also become an equity stake holder
in NSDL to the extent of 4.76%.
SBI Commercial and International Bank, has become the country's first public sector bank to
introduce optical disk (OD) facilities for data storage.
1998 - State Bank of India will kick-start its credit card business on July 1 by floating two joint
ventures with GE Capital. The largest financial intermediary in the country will sign the joint
venture agreement with GE Caps in the last week of January.
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The State Bank of India on Jan 27 kicked off its foray into the payment cards business with a
joint venture agreement with US-based financial services giant, General Electric Capital
Corporation (GE Capital).
State Bank of India (SBI) on June 24 signed an exclusive agreement with the world's largest
payment system - Visa International - for payment cards in India. The agreement was signed in
Mumbai between the SBI managing director, Mr O P Sethia, and the general manager and
executive vice president (South East Asia) of Visa, Mr James G Murray.
1999 - State Bank of India (SBI) has bagged the mandate to syndicate the $ 120 million loan for
the National Thermal Power Corporation (NTPC).
The State Bank of India (SBI) proposes to take up the life insurance and general insurance
business once the sector is opened up.
State Bank of India has tied up with its associate banks to market the SBI Card. The SBI has tied
up with State Bank of Patiala in Chandigarh and State Bank of Mysore in Bangalore to help
market its credit card.
SBI proposes to introduce a value-added service for cardholders whereby the credit card can also
be used as an ATM card.
The State Bank of India will tie up with international investment banker Credit SuisseFirst
Boston and three domestic public sector banks to form a gold assaying venture.
The State Bank of India (SBI) has decided to take over SBI Home Finance (SBIHF), with its
assets and liabilities. Having the largest stake, SBI has been weighing various options for bailing
out the joint venture company which has slipped into huge losses.
The State Bank of India (SBI) has signed up with Central Depository Services (I) (CDSIL) for
the dematerialisation of its shares.
SBI shares have already been admitted as security with National Securities Depository (NSDL).
Besides, SBI also has a stake (Rs 10 cr) in the equity of CSDL.

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According to an agreement entered into with the development bank, State Bank of India (SBI)
was to reduce its stake in its investment banking subsidiary to below 50 per cent by March 31.
The State Bank of India (SBI) has entered into an agreement with Moody's Investor Service and
Icra, under which SBI will pick up Moody's 11 per cent stake in Icra in case the global rating
firm wants to get out of its investment in India.
State Bank of India (SBI) has taken the lead in `convenience banking' by becoming the first
public sector bank to offer its `savings bank' account holders the benefits of fixed deposits
(higher interest rates) and current accounts (overdraft facility).
2000 - The Bank has embarked upon the expansion of its ATM network in the twin cities of
Hyderabad and Secunderfabad.
The Bank has become the first government owned financial institution to join the rank of
companies declaring interim dividend.
The Bank has proposed to come out with an issue under private placement of unsecured, nonconvertible, subordinated bonds in the nature of promissory notes of Rs 1 lakh each aggregating
Rs 600 crores with an option to retain oversubscription of up to Rs 40 crores.
The Bank launched the "Metal (Gold) Loan Scheme" in Coimbatore. This is the third scheme to
be introduced by SBI.
SBI is also forming a subsidiary - SBI Gold and Precious Metals Pvt. Ltd. with 50 per cent
equity participation.
Mr. Vepa Kamesam, Deputy Managing Director, has been appointed as Managing Director with
effect from 1st June.
SBI board cleared the setting up of a separate subsidiary for information technology.
KC Raut has recently taken charge as general manager at State Bank of India, Chennai.
The Bank has become the first public sector bank to offer fixed-rate home loans.

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The State Bank of India has tied up with State Bank of Mysore to launch co-branded credit cards
as part its strategy to collaborate with associate banks to expand its cardholder base.
Central Depository Services (India) Ltd has signed an agreement with State Bank of India as its
Depository participant.
State Bank of India and the Exim Bank of the US have signed amemorandum of understanding,
involving $500 million, to support the small and medium-sized ndian companies to purchase US
goods and services.
Mr. Suresh Kumar Mehra, Workmen Directors, ceased to be a member of the Central Board of
the bank effect from October 1, due to his retirement at the close of the business on September
30.
The Bank has launched an international credit cards for doctors, the frist of its kind in the
country, offering facilities including special discounts on medical equipment and personal loans
from GE countrywide.
The State Bank of India has introduced a new scheme to boost exports.
The CRISIL has assigned a triple-A (AAA) rating to the State Bank of India's Rs 3,000 crore
bonds programme.
The Bank have decided to close down its fully-owned foreign subsidiary - SBI European Bank
Ltd., in London.
Mr. S. Mukerji, Managing Director, of the bank retired from the bank on 30th of November.
State Bank of India Mutual Fund has launched the Magnum Gilt Fund, dedicated to investing in
government securities.
2001 - The Bank has signed an MoU with Cardif S.A. for the bank's life insurance business.
The Bank has introduced Voluntary Retirement Scheme for eligible employees, open from the
15th January 2001 to the 31st January 2001.

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The Bank has incorporated a subsidiary `SBI Life Insurance Company Ltd.,' for doing life
insurance business.
The Bank will install 10 more Automated Teller Machines in the north-eastern region in addition
to the one already commissioned at Guwahati.
State Bank of India launched three more ATMs i n Bangalore.
Mr Y Radhakrishnan has been promoted to the post of managing director of State Bank of India.
SBI Cards has set up a special insurance cell in Ahmedabad for facilitating the claims of SBI
cardholders affected by the tragic earthquake in Gujarat.
SBI has assigned the Delhi-based HCL Com Net to provide it ATM teller inter-connectivity
which could involve investments running into several hundred crores.
SBI chief general manager Madhav M Mehta, who is currently the operational head in Gujarat,
has been transferred to its corporate office in Mumbai as chief general manager (CGM).
July 3- Announces the launch of the SBI International card and the SBI Global Card for global
travelers in India. SBI International cards and SBI Gold Cards would be accepted at over 20
million Visa outlets worldwide and one lakh outlets in India.
State Bank of India has embarked upon an ambitious Rs 800-crore technology upgradation
programme. The bank has appointed KPMG, a consultant in computer technology, to provide
inter connectivity networking to the computerised branches and also to the ATMs across the
country enabling its customers to transact any kind of business from anywhere
State Bank of India was presented the award for JD Power Asia Pacific's 2001 India Sales
Satisfaction Index (SSI) and Consumer Financing Satisfaction (CFS)
State Bank of India has added three more ATMs to its network. The new ATMs were installed at
SBI's Andheri (west),Goregaon (east),and Borivili (east) branches on September 22
State Bank Of India (SBI) has informed BSE that Shri K.J.Udeshi, ED, RBI has been nominated
on the Central Board of the Bank as nominee of RBI in place of Dr.Y.V.Reddy, w.e.f. September
22, 2001 under Sec.19(f) of SBI Act.
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State Bank of India has slashed the interest rate on home loans by 0.5 per cent to 12 per cent,
effective from September 15.
IN A significant move, the State Bank of India has decided to distance itself from its subsidiaries
- SBI Capital Markets, SBI Gilts, SBI AMC and State Bank of Credit and Commerce
International. They will have the autonomy, independent chairmen and external executives at the
senior management level at market-related salaries. At present, the SBI chairman is the ex-officio
chairperson of all the subsidiaries, including the associate banks.
The new scheme will be aimed only at the award staff, a category that was included with
officers in the January 2001 voluntary retirement scheme.
SBI Cards on July 3, announced the launch of the SBI International card and the SBI Global
Card for global travelers in India.
- VRS implemented in which around 21,000 employees, including officers, were permitted to
retire
- The Bank has crossed another milestone by making a successful foray into insurance. SBI is
the only Bank to have been permitted a 74% stake in the insurance business. The Bank's
insurance subsidiary, SBI Life Insurance Company, a joint venture with the Bank holding 74%
and Cardif S.A., the Joint venture partner, the balance 26%, was incorporated to undertake life
insurance and pension business. Cardif S.A. is a wholly-owned subsidiary of BNP-Paribas,
which is the largest bank in France and one of the top ten banks in the world. Cardif S.A. is the
largest bancassurance company in France.
- The bank's efforts to establish a world -class credit information bureau in India culminated in
the successful setting up of the Credit Information Bureau (India) Ltd., a joint venture of the
Bank with HDFC Ltd., Dun and Bradstreet Information Services India Pvt. Ltd. and Trans Union
International Inc.
2002 - In order to reduce risk and develop a transparent and active debt market in general and
government securities market in particular, the Clearing Corporation of India Ltd. has been set
up in Mumbai with the Bank as the chief promoter.

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-E K Thakur resigns from Directorship of SBI.

-TCS bags order of Rs 500 crore from SBI.

4.7 Profile of Bank of Baroda:

BSE: 532134 | NSE: BANKBARODA | ISIN: INE028A01013
Market Cap: [Rs.Cr.] 29,330 | Face Value: [Rs.] 10
Industry: Banks - Public Sector
Discuss this stock

Company Profile
Bank of Baroda is one of the leading commercial banks in India. The Bank's solutions includes
personal banking, which includes deposits, gen-next services, retail loans, credit cards, debit
cards, services and lockers; business banking, which includes deposits, loans and advances,
services and lockers; corporate banking, which includes wholesale banking, deposits, loans and
advances and services, and international business, which includes non-resident Indian (NRI)
services, foreign currency credits, ECB, offshore banking, export finance, import finance,
correspondent banking, trade finance and international treasury. The Bank offers services, such
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as domestic operations and Forex operations. They also offer rural banking services, which
include deposits, priority sector advances, remittance, collection services, pension and lockers.
They also offer fee based services such as cash management and remittance services. The Bank
is having their head office located at Baroda and their corporate office is located at Mumbai.
Bank of Baroda was incorporated on July 20, 1908 as a as a private bank with the name The
Bank of Baroda Ltd. The Bank was established with a paid up capital of Rs 1 million and was
founded by Maharaja Sayajirao III of Baroda. In the year 1910, the Bank opened their first
branch in the city of Ahmedabad. In the year 1919, they opened their first branch in Mumbai
City. In the year 1953, the Bank opened first international branch at Mombasa, Kenya. During
the period 1953-1969, the Bank opened three branches in Fiji, five branches in Kenya, three
branches in Uganda and one each in London and Guyana. In the year 1958, The Hind Bank
merged with the Bank and in the year 1962, The New Citizen Bank Ltd amalgamated with the
Bank. In the year 1964, The Umargaon Peoples' Bank & Tamilnadu Central Bank amalgamated
with the Bank. In July 1969, the Bank was nationalized and the name was changed from 'The
Bank of Baroda Ltd' to 'Bank of Baroda'. During the period 1969 to 1974, they established three
branches in Mauritius, two branches in UK and one branch in Fiji. They entered in the oil rich
Gulf countries in the year 1974 with two branches were opened in UAE, one at Dubai and
another at Abu Dhabi. In the year 1976, the Bank sponsored the first of their 19 Regional Rural
Banks thereby seeking to complement their operations in rural heartland. In the year 1977, they
launched the 'Gram Vikas Kendra' (GVK), an innovative model for integrated rural development.
In the year 1984, the Bank launched their Credit Card Operations. In the year 1988, The Traders
Bank Ltd amalgamated with the Bank. In the year 1991, the Bank established their housing
finance subsidiary, BOB Housing. They also established subsidiaries for businesses of credit
cards (BOBCARDS), asset management (BOB AMC) and capital market activities (BOB Caps).
In December 1996, the Bank entered the capital market with an Initial Public Offering. In the
year 1997, they opened a branch in Durban. In the year 1999, the Bank commenced operations as
a depository. Also, Bareilly Corporation Bank amalgamated with the Bank during the year. In the
year 2000, the Bank appointed Arthur Andersen India Pvt Ltd as risk management consultant for
setting up a Comprehensive Risk Management Architecture for the Bank. In the year 2001, they
established a separate Risk Management Department and specialized integrated treasury branch.
In the year 2002, The Benares State Bank Ltd merged with the Bank. They launched Debit Card
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project in affiliation with VISA. In the year 2004, The South Gujarat Local Area Bank
amalgamated with the Bank. In June 1, 2004, the Bank signed an MoU with National Insurance
Company Ltd for selling their non life insurance products under corporate agency arrangement.
During the year 2004-05, the Bank expanded their interconnected ATM network to cross 501,
spread over 180 centres in the country. The bank also introduced 8AM to 8PM banking at 101
branches and 24-Hour banking at 5 branches in the country. They launched the IT Enabled
Business Transformation Program and signed the contract with Hewlett Packard. They launched
Multicity cheque facility. In the year 2006, the Bank established an Offshrore Banking Unit
(OBU) in Singapore. They commissioned 464 new ATMs across the country taking the tally to
634 Nos. In the year 2007, the Bank identified Legal & General, the UK-based life insurance
company as a partner for their life-insurance venture with initial capital of about Rs 200 crore. In
April 2007, the Bank opened Gen-Next, the youth-oriented branch. In May 2007, they signed an
agreement with Dun & Bradstreet (D&B) regarding assign ratings to the bank's small-scale
industry (SSI) customers. In October 6, 2007, the Bank made a tie up with Pioneer Global Asset
Management SpA, Italy for launching joint venture for asset management business (Baroda
Pioneer Asset Management Company). The joint venture would first offer products of Indian
origin and later bring international investment opportunities to the Indian market. They launched
sale of Gold Coins during the year. During the year 2008-09, the Bank opened eight new Urban
Retail Loan Factories (URLFs) at Powai Mumbai, Agra, Bareilly, Bhopal, Nagpur, Ernakulam,
Jodhpur, and Noida. They launched new loan products, namely Loan for Earnest Money Deposit,
Baroda Additional Assured Advance to NRIs, Baroda Bachat Mitra, Baroda Car Loan to HNIs/
Corporates, Baroda Advance Against Gold Ornaments/ Jewelry/ Gold Coins and Special Home
Loans package. During the year, the Bank signed an MoU with number of car manufacturing
companies viz. Maruti Suzuki India Ltd, Tata Motors Ltd, Hyundai Motors India Ltd and
Mahindra & Mahindra Ltd for boosting up Auto Loan portfolio. They made a tie up with Kotak
Mahindra Old Mutual Life Insurance Ltd for providing Life Insurance Cover to Education Loan
borrowers and Home Loan borrowers sanctioned under a special package. During the year, the
Bank opened four new branches/ offices, viz. Branch at Guangzhou (China), Electronic Banking
Unit at Musaffah (UAE) and branches of the Subsidiaries at Kawempe (Uganda) and Nakuru
(Kenya). In July 2008, they received the license from the China Banking Regulatory
Commission (CBRC) for their full fledged branch in Guanzhou city in the Guangdong
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province.Also, the online Home Loan application facility was made available with tracking of
status of the application from July 20, 2008. During the year 2009-10, the Bank opened Six new
Retail Loan Factories (RLFs) at Chandigarh, Gamdevi (MMSR), Patna, Coimbatore, Ranchi and
Allahabad. They established three SME Loan Factories during the year. In June 22, 2009, the
Bank launched a new business process reengineering and organizational restructuring project
'Navnirmaan- Baroda Next'. In September 2009, the Bank brought all the branches of the Bank
on CBS platform to offer 'Anywhere Anytime' banking to all its customers. All the branches of
the Bank have been enabled to provide e-banking services as well as electronic fund transfer
facilities by way of RTGS and NEFT to its customers. In October 10, 2009, the Bank launched a
new subsidy linked housing loan scheme under the Bank's Home Loan Product styled as 'Interest
Subsidy Scheme for Housing the Urban Poor (ISHUP)'. In November 2009, the Bank entered
into definitive agreement with T Rowe Price for proposed divestment of 6.50% stake in UTI
Asset Management Company and UTI Trustee Company. In November 16, 2009, the Bank
entered into life insurance business by forming a Joint Venture (JV) Life Insurance Company
namely IndiaFirst Life Insurance Company Limited where Bank of Baroda holds 40% stake,
together with Andhra Bank holding 30% and Legal & General Group holding 26%. Also, the
Bank signed Corporate Agency Agreement with their joint venture company in life insurance,
IndiaFirst Life Insurance Co Ltd, to market their life insurance products under Wealth
Management Services. In the year 2010, the Bank received a commercial banking license from
Malaysia to a locally incorporated bank, namely India BIA Bank (Malaysia), to be jointly owned
by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The Bank opened a branch in
Auckland, New Zealand, and also opened their tenth branch in the United Kingdom. In July
2010, the Bank signed an agreement with the Unique Identification Authority of India (UIDAI)
to act as a registrar for the project. The bank will join the UIDAI in collecting biometric and
demographic details of their customers as well as others. In August 2010, the Bank signed a
memorandum of cooperation with the Dubai Multi Commodities Centre Authority (DMCC), a
free zone authority dedicated to enhancing trade flows through Dubai. The MoC is designed to
provide value-added services to DMCC-registered companies and to further enhance the
proposition of operating in the Jumairah Lake Towers (JLT) Free Zone. Also, DMCC and the
Bank will share knowledge through seminars, workshops and exchange of faculty. During the
year 2010-11, the Bank opened seven new branches/ offices (including the ones for its overseas
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subsidiaries). A branch was opened at Ilford, Essex (UK) and five Electronic Banking Service
Units (EBSUs) in UAE at RAKIA, Ras Al Khaimah, Al Qusais, Dubai, Sh. Zayed Road, Dubai,
Al Karama, Dubai and National Paints, Sharjah. The subsidiary in New Zealand, Bank of Baroda
(New Zealand), commenced operations with the opening of branch at Auckland. During the year,
the Bank launched a new Retail Asset Product styled as Baroda Traders Loan against the
Security of Gold Ornaments/ Jewellaries. They launched a Retail Asset scheme under Baroda
Personal Loan styled as Baroda Loan to Retirees for Pension Option. Also, they introduced a
new Term Deposit Product styled as Baroda Utsava Deposit Scheme for 444 days at the interest
rate of 8.10% which was revised from time to time and last increased to 9.35% with effect from
March 1, 2011 During the year, the Bank opened a new Gen-next branch in NOIDA and now the
total number of Gen Next Branches is eight. Also, they opened five new Retail Loan Factories at
Karol Bagh New Delhi, Raipur, Ludhiana and Nasik, whereas one existing RLF at Jodhpur was
closed. With this the total tally of the Banks Retail Loan Factories (RLFs) is 35. In January 15,
2011, the Bank launched two new Retail Liability Products underSavings Bank Segment styled
as Baroda Pensioners Savings Account and a Life Insurance linked Savings product styled as
Baroda Jeevan Suraksha Savings Account under a tie-up arrangement with IndiaFirst Life
Insurance Company. In February 2012, the Bank entered into an MoU with Banco Bilbao
Vizcaya Argentaria (BBVA) for a joint venture regarding credit card business. The Bank
proposes to further expand their network by opening additional branches in countries where they
are already present, and, also wants to enter new territories. They have initiated steps for opening
of two branches and two EBSUs in UAE, one branch in Oman and one branch in Mauritius. The
work related to the opening of eight new branches of the subsidiaries is at an advanced stage.
The subsidiaries in Uganda, Kenya and New Zealand will be opening two branches each and in
Botswana and Guyana, one additional branch will be opened. The Banks applications for setting
up of a subsidiary in Suriname and Canada, opening of a branch in Qatar and upgradation of a
Representative Office in Australia to a branch are under process by the host country regulators.
The Bank has already initiated steps for identification of new centres for overseas expansion
.

4.7.1 History - Bank of Baroda:

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1969- The Bank was brought into existence by a Ordinance issue on 19th July, by the Central
Government. The Bank is a Government of India Undertaking and carries on all types of banking
business including foreign exchange. The Ordinance was replaced by the Banking Companies
(Acquisition and Trasfer of Undertaking) Act, 1969.
- Besides managing public issues and giving underwriting support, the Bank established a `Nonresident Portfolio Management Consultancy Cell'. Due to closure of 2 branches in U.K. and 1
branch in UAE, non-operative branch in Bangladesh was not taken into account.
1970- Income-Tax consultancy services was set-up in September to assist its constituents in the
filing of income returns.
- Bank of Baroda (U.K.) Nominees Ltd., London is a subsidiary of the Bank. Bob Fiscal Services
Ltd., is also a subsidiary of the Bank which handles functions such as merchant banking,
equipment leasing, investment banking, inter-corporate deposit, etc. Bank of Baroda (Kenya)
Ltd., Kenya is subsidiary of the Bank.
1986- The bank sponsored and set-up five RRBs taking the total number of RRBs to 19.
- Rs 16 crores capital subscribed for by Government.
1988- The erstwhile `Trades Bank Ltd.' was amalgamated with the Bank.
- Rs 14 crores capital subscribed for by Govt. Rs 5.5 crore reimbursement received from World
Bank.
1989- Rs 891,47,850 capital subscribed for by Govt.
1990- Rs 2704,41,129 capital subscribed for by Govt.
1991- Rs. 11,491.97 lakhs capital subscribed for by Govt.
1992- Rs. 9158.43 lakhs capital subscribed for by Govt.
1993- Rs. 409,34,000 capital subscribed for by Govt.
- The bank received `in principle' approval from RBI to set up a separate subsidiary for its credit
card business.
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- The bank had established a new department to act as custodian of local shares issued by Indian
companies who came out with Euro Issues (GDRs/ADRs) to raise funds from abroad. With this
in view, the bank entered into an agreement with Bank of New York, who act as Depository for
issue of GDRs by companies.
- The bank was associated as lead manager/co-manager in respect of 142 issues involving a sum
of Rs 3411 crores. The bank was activity considering setting up of a separate subsidiary to
undertake all types of merchant banking activities.
1994- Rs. 1,63,30,000 capital subscribed for by Govt.
1995- Rs 163,93,59,000 capital from reserve fund. 1996
- The Bank devised new products, two new deposit schemes `BOB SUVIDHA', `BOB
CAPITAL GAINS EXEMPTION DEPOSIT' was launched to suit the savings requirements of
individuals, HUF, Association of persuing, firms and companies.
- The bank initiated several measures to bring qualitative improvement in the area of credit. A
fast track systems for processing credit proposals of A+ & A rated corporate client was
introduced. In addition, schemes to increase credit fluid sectors like leasing, hire purchase,
advances against shares, Can Loan Schemes etc. were formulated and guidelines were issued for
increased lending to infrastructure projects.
- The Company lead managed 1 public and 5 rights issues aggregating Rs 40.541 lakhs through
BOB Capital Markets Ltd. BOB Housing Finance Ltd. made a fresh disbursements of Rs 21
crores. Total cumulative loans sanctioned reached Rs 127 crores.
- 3810,00,000 No. of Equity shares returned to Govt. of India. 1000,00,000 No. of Equity shares
issued through prospectus to the public at a prem. of Rs 75 per share.
1997- Bank of Baroda (BoB) has received permission from the Reserve Bank of India to open a
branch at Durban in South Africa. BoB proposes to start operations in the country soon after it
receives a banking licence from the South African Reserve Bank (SARB).
- Bank of Baroda (BoB) proposes to undertake a survey of West Bengal, Sikkim and NorthEastern States to explore business opportunities and also for setting up new branches.
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- Bank of Baroda (BoB) proposes to wholly own the 120 million HK dollars IOB Bank in Hong
Kong by increasing its stake from 33 per cent to 100 per cent to make its presence felt in the Far
East.
- Bank of Baroda (BoB) plans to have an alliance with a foreign bank for merchant banking. The
proposed venture would manage external commercial borrowings (ECBs) by Indian corporates
and handle disinvestment programmes of public sector undertakings.
- Bobcards Ltd, a wholly owned subsidiary of Bank of Baroda, has achieved a 40 per cent
growth in profit before tax in the first half year ended September, 1997.
- Bank of Baroda's New York branch has received the highest 1 rating from the US Federal
Reserve. This is for the first time that the US Fed has given the highest rating to any Indian bank
branch operating in New York.
1998- Bank of Baroda has become the first public sector bank to implement the autonomy
package announced by the ministry of finance in November, 1997.
- BoBGLOBAL, the first Indian credit card introduced for international use, with VISA tie-up, is
already being accepted by over ten million establishments in over 60 countries.
- The Bank of Baroda (BoB) plans to restructure its international operations, particularly in
Europe and the United States (US) ahead of the launch of the euro, the European Union's single
currency unit.
- Bobcards Ltd, the wholly owned subsidiary of Bank of Baroda is looking for partners to enter
into a joint venture.
- Bank of Baroda is weighting the option of setting up a separate subsidiary dedicated
exclusively to its highly profitable international business.
- Bank of Baroda has the second largest resource base in the country after State Bank of India.
- Bank of Baroda (BoB) has revised the rate of interest on foreign currency non-resident (banks)
deposits for various maturities for different currencies effective October 26.

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- Bank of Baroda has revised the rate of interest on FNCR (b) deposits for various maturities for
different currencies with effect from November 30.
1999- Bank of Baroda (BoB) will co-ordinate with the finance ministry to set up a debt recovery
tribunal (DRT) in Mumbai.
- Bank of Baroda (BoB) has revised the rate of interest on its FCNR (B) deposits for various
maturities and different currencies with effect from February 1.
- Rating agency Icra has assigned the highest rating, LAAA (LAAA), to Rs.600 crore long-term
unsecured subordinated bonds of Bank of Baroda (BoB). The public sector bank is coming out
with the bond issue to increase its tier II capital.
- Public sector Bank of Baroda has been designated as a clearing bank for castor oil trading in the
future, which will be launched by the Bombay Oilseeds and Oils Exchange (BOOE) on May 10.
- Bank of Baroda has bought out the 49 per cent shareholding of Government of Uganda in Bank
of Baroda (Uganda) Ltd, thus making it a fully-owned subsidiary of Bank of Baroda.
- Bank of Baroda (BOB) is keen to diversify into the insurance sector, where the focus of its
activities will be the rural population. BOB has proposed to enter health and general insurance
where it plans to mainly target the rural areas.
- Bank of Baroda (BoB) has made a proposal to the Union ministry of finance (MoF) to tap
foreign markets for enhancing the bank's equity base.
- International rating agency Standard & Poor's (S&P) has revised its rating outlook on Bank of
Baroda (BoB) to stable from negative.
2000- The BoB as launched services such as OmniBoB and BoBCash to help the customer
practice anywhere-banking at 18 branches with the `Smart Card'.
- Bank of Baroda launched its e-banking products in Chennai.
- Bank of Baroda has joined hands with financial institutions such as IDBI and ICICI for a
speedy recovery of dues from common problem accounts.

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- Bank of Baroda has set up a core support group consisting 500 knowledge workers from across
its branches to help catalyse change management.
- Bank of Baroda has opened its 104th branch in Kalyan and will also offer safe deposit lockers
and a housing cell.
- Bank of Baroda has decided that it will hold more than 50 per cent in the life insurance
subsidiary it proposes to set-up.
- Bank of Baroda will launch seven day banking in two branches of Chennai and Mylapore and
K K Nagar, on 17th August.
- The Bank is exploring strategic tie-ups with local and foreign partners in the area of insurance,
retail lending and Web banking.
- Bank of Baroda and Punjab National Bank will tie up to form a subsidiary for a foray into life
insurance business.
- Bank of Baroda is in an advance stage of talks with a foreign insurance company for a life
insurance joint venture and is expected to finalise the tie-up within a fortnight.
- The Bank will introduce 7-day banking at 10 branches in Mumbai from October 8th.
- Bank of Boarda will introduce `any branch banking' facility to make customer transactions at
the nearest branch countrywide in the next 18 months.
- The Bank of Baroda has signed up to be a depository participant with Central Depository
Services (India) Ltd.
2001- Bank of Baroda proposes to go in for a major drive to expand its ATM network across the
country.
- Bank of Baroda is tying up with a US-based IT company to set up the basic IT infrastructure of
the bank at a cost of Rs 300 crore.
- Crisil has assigned an `AAA' rating to the Rs 600-crore sub-ordinated bond issue of Bank of
Baroda.
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- BANK of Baroda Housing Finance, a subsidiary of the Bank of Baroda, has disbursed a sum of
Rs 50.0 crore to 2578 beneficiaries in rural and semi-urban areas under the golden rural housing
schemes of the National Housing Bank.
- BoB has signed a redeployment policy with its Federation Union, affiliated to the National
Confederation of Bank Employees (NCBE) regarding the transfer of clerical staff.
- Bank (BoB) has lowered interest rates by 25-40 basis points, for FCNR (B) deposits in force
from September 5, for different currencies, effective from September 17.
- Bank of Barodas (BoB) net profit during the second quarter has dipped by 22.27 per cent to Rs
98.44 crore, down from Rs 126.64 crore in the corresponding period last fiscal.
2002- GOI nominates N S Mhatre as Director on the Board of Bank of Baroda.
-GOI nominates Anand Sinha on the Board of Bank of Baroda.
-Govt sanctions merger of Benares State Bank with Bank of Baroda.
-Bank of Baroda has informed BSE that the Benares State Bank Ltd now stands amalgamated
with the bank wef June 20, 2002 and branches of erstwhile Benares State Bank Ltd have started
functioning as Bank of Baroda's branches with effect from July 19, 2002.
-Bank of Baroda has informed BSE that the Bank of Baroda (Uganda) Ltd., - Subsidiary of the
Bank in Uganda has proposed to make Public Offer of 8 million equity shares of face value of
Ushs.100/- each at an offer price of Ushs.600/- per share. The offer also involves concessional
offer of 200 equity shares per staff member at a price of Ushs.350/-. The offer shall open on
August 26, 2002. The said offer has been approved by RBI.
-Bank of Baroda has informed BSE that the Government of India, Ministry of Finance,
Department of Economic Affairs, Banking Division, New Delhi has nominated Mr Vinod Rai,
Joint Secretary, Ministry of Finance & Company Affairs, Deptt of Economic Affairs (Banking
Division), New Delhi as Director on the Board of the Bank with effect from October 25, 2002.

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-Bank of Baroda elects 4 Directorsthe Director so elected will assume office w.e.f. today
(November 16, 2002) and will hold office till November 15, 2005. 1. Shri Amritlal Sanghvi 2. Dr
M J Manohar Rao 3. Shri Pradip N Khandwalla 4. Shri Prem P Pareek
-RBI grants BoB Capital Markets Ltd. to operate as a primary dealer in Govt. securities market
-Comes out with two special policies for the victims of the communal riots in Gujarat
-Decreases its deposit rates by 25 basis points
-IFCI gets Rs 100 cr credit from Bank of Baroda
-BOBCARDS Ltd, a wholly-owned subsidiary of Bank of Baroda, in collaboration with
Mastercard International, unveils PARAS credit cards
-Tops Non Performing Assets (NPA) list
-Shifts Central Office from Ballard Peir to Bandra
-Unveils flexi-deposit scheme for corporates
-Contributes Rs 1 lakh for repair of Akshardham temple for repairs of damages caused by
terrorist attacks
-Slashes down deposit rates by 25 basis points
-Reduces its deposit rates by 50 basis points at the longer end deposits
-Brings down floating rate on home loans by 0.75%
-Launches international debit card in alliance with Visa International
-BOB CARDS, a subsidiary of Bank of Baroda, and Cholamandalam Investment and Finance
Company declare a tie-up to issue co-branded credit cards to Cholamandalam's vehicle finance
customers

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2003-Decreases interest on domestic term deposits by 25-75 basis points across different
maturities effective January 10,2003
-Gets govt. approval to raise Rs 600 crore through bonds
-Unveils Super Savings Account, savings account with value added propositions
-Appoints IBM, H-P, Accenture for Business Process Reengineering (BPR)
-Paves the way for single-window banking across its 2,200 branches in the country
-Cuts lending rates by 25 bp
-Extends super savings scheme to Coimbatore account holders
-Ties up with Bharat Overseas Bank Ltd. (BOBL) to expand credit cards business in South India
-Amends interest rates for FCNR(B) deposits
-Picks up 10 pc stake in IFCI's Asset Care Enterprise (ACE)
-Sign MOU with Small Industries Development Bank of India (SIDBI) to co-finance the small
scale industries sector
2004-Mobilizes Rs 300 Cr through Tier II bonds
-Ministry of Finance, Department of Economic Affairs, Banking Division, New Delhi vide their
Notification dated January 09, 2004 has nominated Shri G K Sharma, Chief General Manager incharge Reserve Bank of India, Dept. of Administration & Personnel Management, Central
Office, Mumbai as Director on the Board of the bank w.e.f. January 09, 2004 in place of Shri
Ramesh Chander, Regional Director, RBI, New Delhi.
-S P Garg is new managing director of Bobcards Ltd, a wholly-owned subsidiary of Bank of
Baroda.
-Bank of Baroda has informed that the Government of India, Ministry of Finance, Department of
Economic Affairs (Banking Division), New Delhi vide their notification dated February 4, 2004

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has appointed Dr. A K Khandelwal, Executive Director (ED) of Bank of Baroda as Chairman &
Managing Director (CMD) of Dena Bank.
-The government has chosen Bank of Baroda for channelising government credit to other
countries which runs into billions of dollar
-Ties up with Punjab Tractors for offering finance to farmers for buying tractors from Punjab
Tractors
-Bank of Baroda signed a memorandum of understanding with L&T John Deere Pvt Ltd to prop
up farm sector lending.
-Bank of Baroda inks pact with Escorts Ltd, Indo Farm Tractors & Motors Ltd to boost farm
lending
-BOB join hands with NIC for non-life insurance products
-Bank of Baroda enters China
-Ties up with Chennai-based Tractor & Farm Equipments Ltd (TAFE) for financing their tractors
-Mr T.V. Lakshminarayanan has taken over as the Head of the South Zone, Bank of Baroda
-Bank of Baroda (BoB) has tied up with Mahindra and Mahindra Ltd (M&M) for tractor
financing
2005- BoB has appointed Dr A K Khandelwal, as the Chairman & Managing Director (CMD) of
the Bank for a period of three years with effect from March 01, 2005 upto March 31, 2008
- Bank of Baroda signs contract with HP India Sales Pvt Ltd for implementation of Bank's IT
enabled Business Transformation Process
-BoB unveils new logo, ropes in Dravid as brand ambassador
-Bank of Baroda inks co-financing agreement with SIDBI
-Bank of Baroda has amalgamated its three sponsored regional rural banks (RRBs) into single
RRB, called Baroda Gujarat Gramin Bank
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-BOB signs Memorandum of Cooperation with EXIM Bank

-BoB unveils campaign on tractor, irrigation advances.

2006-Bank of Baroda (BOB) has informed that the Bank and Infrastructure Development
Finance Company Ltd (IDFC) have on February 16, 2006, entered into a Memorandum of
Understanding (MOU) to enhance the provision of financing and other banking products and
services to entities involved in infrastructure development.
-The Bank of Baroda unveiled its first SME loan factory in Pune on Oct 13.
- Bank of Baroda (BOB) has informed that pursuant to powers conferred by clause (b) of subsection (3) of section 9 of Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970, read with sub clause (1) of clause 3 of the Nationalised Banks (Management and
Miscellaneous Provisions) Scheme, 1970, the Government of India, Ministry of Finance,
Department of Economic Affairs (Banking Division) vide their Notification Dated October 31,
2006 have nominated Shri G C Chaturvedi, Joint Secretary (B&I) MOF, GOI as Director of the
Bank vice Shri Vinod Rai with immediate effect.
2007-Bank of Baroda and India Infrastructure Finance Company Ltd (IIFC) on January 10, 2007,
have entered into an Memorandum of Understanding (MOU) to enhance the provision of
financing and other banking products and services to entities involved in infrastructure
development.
-Bank of Baroda , Andhra Bank and M/s. Legal & General Group plc, UK have signed an MoU
on November 16, 2007 to form a Joint Venture (JV) for Life Insurance Business.
-Bank of Baroda has appointed Shri. Atul Agarwal as a part time non official Director on the
Board of Directors of the Bank for a period of three years with effect from November 23, 2007
or until further orders, whichever is earlier.
2008-Bank of Baroda has appointed Smt. Shahid as Director on the Board of the Bank under
section 9(3)(h) of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
vide Government Notification dated September 15, 2005 for a period of 3 years.
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2009- Bank of Baroda has announced the deposit rate cuts by 50 basis points across all
maturities.
- Bank of Baroda has appointed Dr. Masarrat Shahid as part time, non official director on the
Board of Bank of Baroda, for a second term of three years w.e.f. October 29, 2009 or until
further orders, whichever is earlier.
2010- Bank of Baroda has appointed Shri N. S. Srinath as an Executive Director of the bank.
- Bank of Baroda (BoB) has launched a Mobile Micro Loan Factory (MMLF) in Sultanpur
district of Uttar Pradesh.
- Bank of Baroda (BoB) has signed a Memorandum of Understanding (MoU) with the Unique
Identification Authority of India (UIDAI).The memorandum which has been signed between the
two organizations would make the bank to act as a registrar for the enrolment of UID for its
existing and future customers.
- A memorandum of cooperation (MoC) has been signed by Bank of Baroda (BoB) with the
Dubai Multi Commodities Centre Authority (DMCC) in order to provide value added services to
DMCC-registered companies as well as to enhance the proposition of operating in Jumairah
Lake Towers (JLT) Free Zone.
- Bank of Baroda has informed BSE that in exercise of the powers conferred by of sub-section 3
(h) and (3-A) of Section 9 of The Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1970 read
with sub clause (1) of clause 3 of The Nationalised Banks (Management & Miscellaneous
Provisions) Scheme 1970, the Central Government vide its notification dated August 31, 2010,
has nominated Shri. Satya Dev Tripathi as part-time non-official Director of the Bank, for a
period of three years w.e.f. August 31, 2010 or until further orders, whichever is earlier.

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Chapter-5
ANALYSIS
AND
92

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INTERPRETATION
OF DATA

Personal details:
Q.1. AGE GROUP
AGE GROUP

NO.

OF PERCENTAGE

15 24
25 34
35 44
45 54
55+

RESPODENTS
35
47
52
58
58

14%
19%
21%
23%
23%

93

94

PERCENTAGE
25%
20%
PERCENTAGE

15%
10%
5%

19%

21%

23%

23%

45 - 54

55+

14%

0%
15 - 24

25 - 34

35 - 44

Interpretation:Majority of the respondents are coming under the age group of above 55 and 45 to 54. 21% and
19% respondents are coming under the age group of 35 to 44 and 25 to 34 respectively. Very few
respondents are coming under the age group of 15 to 24.

Q.2. OCCUPATION:OCCUPATION

Business
Agriculture
Service
Student

NO.

OF PERCENTAG

RESPODENT

S
105
30
90
25

42%
12%
36%
10%

94

95

PERCENTAGE
42%

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

36%

PERCENTAGE
12%

Business Agriculture

10%

Service

Student

Interpretation:Majority of the respondents are doing business and service i.e. 42% and 36% respectively. Very
few respondents are doing agriculture and study i.e. 12% and 10% respectively.

Q.3 Annual Family Income

FAMILY

NO.

OF PERCENTAG

INCOME

RESPODENT

below 200000
200000-299999
300000-399999
400000-499999

S
81
89
33
47

32%
36%
13%
19%

95

96

PERCENTAGE
40%
35%

36%
32%

30%
PERCENTAGE

25%

19%

20%

13%

15%
10%
5%
0%
1

Interpretation:32% and 36% respondents are coming under the income group of below 2, 00,000 and 2, 00,000
to 2, 99,999. 19% respondents are coming under the income group of 4, 00,000 to 4, 99, 999.
Other respondents are coming under the income group of 3,00,000 to 3,99,999.

Q.4. In which of the following banks do you have an account?

BANK

ICICI
HDFC
SBI
BOB
OTHER

NO.

OF PERCENTAG

RESPODENT

S
45
25
65
53
62

18%
10%
26%
21%
25%
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97

0.3

26%

0.25

25%
21%

18%

0.2

Bank

0.15

PERCENTAGE

10%
0.1
0.05
0

0
ICICI

0
HDFC

0
SBI

0
BOB

0
OTHER

account

with

Interpretation:18%

and

10%

respondents

have

bank

ICICI

and

HDFC.

26%

and 21% respondents have bank account with SBI and BOB. Only 25% respondents have bank
account with other banks.

Q.5 Which type of account do you have in the bank?

BANK

NO.

OF PERCENTAG

ACCOUNT

RESPODENT

Saving
Current
Recurring
Loan Acc.
Deposit account

S
80
40
41
33
25

32%
16%
16%
13%
10%
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98

HP

stock 31

12%

account

TYPE OF ACCOUNT
35%
30%
25%
20%
15%

32%

10%

16%

16%

13%

5%

10%

12%

0%
Saving

Current

Recuring

Loan Acc.Deposit account

HP stock account

Interpretation:Majority of the respondents have saving account i.e. 32%. 16% and 16% respondents have
current and recurring account respectively. Very few respondents have loan account, deposit
account and HP stock account with the bank i.e. 13%,10% and 12% respectively.

Q.6 Response rating of banking staff.

RESPONSE

NO.

OF PERCENTAG

RATE

RESPODENT

Excellent
Very Good
Good
Poor

S
30
80
85
35

12%
32%
34%
14%
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99

Very Poor

20

8%

RESPONSE RATING
40%
35%
30%
25%
20%
32%

15%

34%

10%

14%

12%

5%

8%

0%
Excellent

Very Good

Good

Poor

Very Poor

Interpretation:
Majority of the respondents feel good when they meet to the banks staff i.e.34%,

32%

respondents feel very good when they meet to the banks staff. Very few people think that the
behaviour of the bank staff is poor and very poor i.e. 14% and 8% respectively.

Q-7 How many time you visit bank?

VISIT IN A BANK

No of respondent

Percentage

Once In a Week
Twice In Week
Once In a Month
Twice In Quarter

80
90
30
50

12%
20%
32%
36%

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100

FREQUENCY OF VISIT IN A BANK

90

80

90
80
70
60
50
40
30
20
10
0

50
30
Sales

Interpretation
Majority of the they visit in a bank out of 250 i.e.90 and 50 are respondents twice in week and
once in quarter and out of 250 are in only 30 and 80 are visit in bank once in week and once in
month.

Q.8 To whom do you meet when you visit the bank?

WHOM

YOU NO.

OF PERCENTAG

MEET

RESPODENT

Cashier
Manager
CRM Manager
Other Staff

S
70
60
57
63

28%
24%
23%
25%

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101

25%

28%

23%

24%

Cashier
Manager
CRM Manager
Other Staf

Interpretation:
Majority of the

people meet CRM manager when they came at bank i.e.23%, 24% and 28%

respondents are meet manager and cashier respectively. Very few respondents meet other staff.

Q.9 Are you satisfied with the response provided by the staff members?

SATISFY WITH NO.

OF PERCENTAG

STAFF

RESPODENT

MEMBER
Yes
No

S
188
62

75%
25%

101

102

90
90
88
86
84
82

80

80
78
76
74
NO. OF RESPODENTS

Interpretation:
Out of the 250 respondents 188 respondents are satisfied with the bank and 62 respondents are
dissatisfied. This shows that bank staff members are very co-operative and responsive.

Q-10 Do you have any bank loan?

Bank loan
Yes
No

No. of respondent
157
93

102

103

No. of Respondent having bank loan

157
160
140
120

93

No. of Respondent

100
80
60
40
20
0
Yes

No

Interpretation;Majority of the respondents having bank loan i.e. 157 respondents. There are only 93
respondents who does not having bank loan. This shows that majority of the respondent are
taking loan from bank.

Q-11 What kind of other services provided by bank?

OTHER SERVICES

NO.OF RESPONDENT

Loans
ATM
Credit cards
Net banking

37
190
13
10

103

104

Other Services provided by Bank

13 10

Loans

37

ATM
Credit Cards

190

Net Banking

Interpretation:Majority of the respondents use ATM services provided by the bank i.e 190 respondents. Only 37
respondents take loan. Very few respondents use credit card and net banking i.e. 13 and 10
respondents respectively.

Q-12 How do you know about the services?

SERVICES

NO.OF RESPONDENT

Advertisement
Direct selling agent
Friends & Relatives
Other Sources

112
85
23
30

104

105

No. of Respondent
120

112

100

85

80
60

30

23

40

No. of Respondent

20
0

Interpretation:Majority of the respondents are come to know about the services by advertisement i.e. 112
respondents. 85 respondents are come to know about the services by direct selling agent. Very
few respondents are come to know about the services by friends/relatives and other sources i.e.
23 and 30 respondets respectively

Q.13 Are you satisfied with the services provided by the bank?
SATISFY WITH NO.

OF PERCENTAG

SERVICES

RESPODENT

Highly satisfied
Satisfied
Can't say
Unsatisfied
Highly

S
59
123
47
15
06

24%
49%
19%
6%
2%

unsatisfied
105

106

NO. OF RESPODENTS

47

15

59

123

Interpretation:
Majority of the respondents are satisfied with the services provided by bank i.e. 49%. 24%
respondents are highly satisfied. 19% respondents are not able to say anything about the bank
services. Very few respondents are dissatisfied and highly dissatisfied with the services provided
by bank i.e. 6% and 2% respectively.

Q.14 ATM service is easily available in your area?

ATM SERVICE NO.

OF PERCENTAG

AVAILABLE

RESPODENT

Yes
No

S
227
23

91%
9%

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107

22700%
250
200
Yes
150

No
2300%
9%

100

No
91%

50

Yes
0
NO. OF RESPODENTS

PERCENTAGE

Interpretation:
Majority of the respondents have easy access of the ATMs i.e. 227 respondents. Only 23
respondents are not able to find ATMs easily. ATM is now very important and it must be easily
available.

Q.15 Bank staff give you useful advice on your investment or loan decision?

USEFUL

NO.

OF PERCENTAG

ADVICES

RESPODENT

Yes
No

S
193
57

77%
23%

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108

19300%
200
180
160
140
120

Yes

100

No

5700%

80
60
40

77%

20

23%

0
NO. OF RESPODENTS

PERCENTAGE

Interpretation:
Majority of the respondents feel that banks staff give them good advice about an investment
and loan related decisions. Very few people are not agree with them i.e. 195 and 55
respondents respectively.

Q.16 Bank remind about new scheme?

BANK

NO.

OF PERCENTAG

REMIND

RESPODENT

Yes
No

S
205
45

82%
18%

108

109

250
20500%
200

150
Yes

No

100
4500%
50
82%

18%

0
NO. OF RESPODENTS

PERCENTAGE

Interpretation:
Majority of the respondents are feel that banks are aware about the reminding new schemes
while other are not agree with them

i.e. 205 and 45 respectively. People sometime not aware

about the new schemes. It is very important to remind them about this.

Q.17 Is your bank responding the customer query properly?

RESPONDING

NO.

OF PERCENTAG

CUSTOMER

RESPODENT

Yes
No

S
185
65

74%
26%

109

110

200

18500%

180
160
140
120

Yes

100

No

6500%

80
60
40

74%

20

26%

0
NO. OF RESPODENTS

PERCENTAGE

Interpretation:
Out of the 250 respondents 185 respondents are feel that banks staff is give respond properly.
Other 65 respondents are not agree with them. Customer have so many queries and it is very
important to give them proper response.

Q.18 IS your bank having CRM?

CRM?

Yes
No

NO.

OF PERCENTAG

RESPODENT

S
225
25

90%
10%

110

111

Yes

0%

NO. OF RESPODENTS
PERCENTAGE

100%

Interpretation:
Majority of the respondents found CRM in the banks i.e. 225 respondents. Very few respondents
not found CRM in the bank.

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Chapter-6

Conclusion
and Recommendation

Conclusion and Recommendation

Relationship marketing has never been given importance in co-operative sector banks in India.
With the liberalization in 1991 on what the competition started increasing in public sector banks
and private sector banks, the co-operative banks started to pay attention to the relationship
marketing. The innovative technologies, better understanding of customers, better understanding
of customer perceptions, can give an idea of keeping good relations with the customers. Its
marketing people should be through with knowledge of the product and their features, which will
lead to attract more and more number of investors. The number of ATM centers should be
112

113

increased so that it would be stand as assets for them at the time when they require the attention
of the investors. To make focus on the rural side because there is lot of potential in this part
where much of concentration is not made rather then having a full flagged branch bank has to
develop its mobile branch like that of the other government banks so as to expand its area
towards villages and towns. It focuses only on the areas, which are flourished with or where
there is abundant of money, here they are lacking behind because per the experience now a days
in rural areas also there is lot of potential for this type of bank.

BIBLIOGRAPHY

REFERENCE BOOKS

Research Methodology for Business. John Wiley & Sons

Research methodology C.R KOTHARI

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MAGAZINE

Business standard
Economics times
RBI Journal

WEBSITES

www.equitymaster.com
www.indiainfoline.com
www.1000ventures.com/business_guide
search engine - www.Google.com
Search engine - www.ultavista.com

ANNEXURE:
Questionnaire
CUSTOMER RELATIONS MANAGEMENT IN SERVICE
ORGANIZATION IN INDIAN BANKING SECTOR WITH REFERENCE TO
TWO NATIONALIZED AND TWO PRIVATE SECTOR BANK.

Personal details:

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115

Name

: ___________________________________.

Gender

: Male

Age

: ________________

Education

: _________________

Occupation

: _________________

Place

: _________________

Female

1. Annual Family Income?

a.)Below 2,00,000
c.)3,00,000 to 3,99,999

b.) 2,00,000 to 2,99,999

d.)4,00,000 to 4,99,999

2. In which of the following banks do you have an account?

a.)ICICI Bank

b.)HDFC Bank

c.)SBI Bank

d.)BOB Bank

e.)Other

3. Which type of account do you have in the bank?

a)Saving

b.)Current

c.) Reccuring

d.)Loan a/c

e.)Deposit a/c

f.)HP stock a/c

4. Response rating of banking staff

a) Excellent

b.) Very good

c.)Good

d.) Poor

e.) very poor

5. How many time you visit in bank?

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a.)Once in week

b.) Twice in week

c.)Once in a month

d.)Once in quarter

6.To whom do you meet when you visit the bank?

a)Cashier

b).Manager

c.)CRM manager

d).other staff

7. Are you satisfied with the response provided by the staff members?
a)Yes

b.)No

8. Do you have any bank loan?

a.)Yes

b.)No

9.What kind of other services provided by the bank?

a.)Loan
c.)Credit card

b.)ATM
d.)Net banking

10.Hpw do you know about the services?

a.)Advertisement
c.)friends & relatives

b.)direct selling agent

d.)Other sources

11. Are you satisfied with the services provided by the bank?
a)Highly satisfied
b)Satisfied
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c)Cant say
d)Unsatisfied
e)Highly unsatisfied

12. ATM service is easily available in your area?

a.)Yes

b.) No

13. Bank staff give you useful advice on your investment or loan decision?
a.)Yes

b.)No

14. Bank remind about new scheme?

a.)Yes

b.)No

15. Is bank responding the customer query properly?

a.)Yes

b.)No

16. IS your bank having CRM?

a.)Yes

b).No

17. Your suggestions _________________________________________________

_________________________________________________________________

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Thank you

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