The document analyzes customer perceptions of various banking products and services through a survey of 154 customers. Key findings include: - 60% of customers prefer high interest rates on savings accounts over other offers. - 51% want lower interest rates on home loans rather than other benefits like insurance. - 68% are willing to pay for home services from bank representatives to learn about online/phone banking. - While most customers (45%) are satisfied with banking services, some (23-33%) are neutral or dissatisfied due to issues like timing, technology failures, and hidden charges.

1. PRICING VIS-À-VIS SERVICE A COMPARITAVE
ANALYSIS OF VARIOUS BANKING PRODUCTS
Presented by :
Raghvendra kumar
(131206)

2. Scope of study
In banking industry Interest rates and services are highly dynamic, It
is important to keep base rate and services according to RBI rules and
regulations.
So the study of RBI rules, regulations, Competitors’ services are very
important along with customers’ needs and perceptions.

3. Company profile
 The Industrial Development Bank of India (IDBI) was established in 1964
under an Act of Parliament as a wholly owned subsidiary of the Reserve
Bank of India.
 In 1976, the ownership of IDBI was transferred to the Government of
India.
 It was made the principal financial institution for coordinating the activities
of institutions engaged in financing, promoting and developing industry in
India.
 After the public issue of IDBI in July 1995, the Government shareholding
in the Bank came down from 100% to 75%.
 It has 2342 ATMs, 1467 branches including one overseas branch at DIFC,
Dubai and 996 centers including two overseas centers at Singapore &
Beijing.
 The Bank has an aggregate balance sheet size of INR 3.2 trillion as on 31
March 2013.

4. Objectives of the studies
1. To study and analyze various banking products of IDBI Bank ltd. and its
competitors.
2. To understand customers’ perceptions towards bank’s retail products.

5. Research Methodology
Information sources:
1. The information has been collected from website of RBI, IDBI and
various banks such as SBI, ICICI, PNB .
2. Intranet of IDBI Bank.
3. Responses and suggestions from customers.
Sample size:
Targeted was 200 customers in which 154 responded.
Sampling procedure:
1. Convenience sampling
2. Online survey
Analysis methods:
Comparative analysis

6. Limitations of the study
1. Due to specialization of the subject, a major part of the project time has
been dedicated to understand and learn about Market condition, Banking
products and services.
2. The study can provide insights based on the current products, trends and
results. It may not be applicable in different period of time.

7. Current Scenario analysis
1. Monetary Policy Review 2014-15 ( April 01, 2014 ):
 Repo rate 8.00%.
 the reverse repo rate 7.00%
 Marginal Standing Facility (MSF) rate unchanged at 9.00%.
Following the first bi-monthly Monetary Policy Review, no bank, except for Bank of
Maharashtra, announced revisions in their Base Rates.
While UBI, CBI, OBC and BoB reduced their respective domestic deposit rates, PNB
and IDBI Bank decided to increase their deposit rates on certain maturity buckets.
2. Non-maintenance of minimum balance:
RBI, in its first bi-monthly Monetary Policy Review 2014-15, had also proposed that
banks do not levy any penal charges for non-maintenance of minimum balance in any
inoperative accounts.
3. Minors to operate savings bank accounts:
RBI, with a view to promote financial inclusion, notified that minors above 10 years of
age will be allowed to open and operate savings bank accounts.

8. Rates
Base Rates: (as on May 19, 2014)
SBI, BoI, CBI, HDFC Bank and ICICI Bank have the most
competitive Base Rate at 10.00%, followed by Canara Bank at
10.20%. All other major public sector banks (including IDBI Bank)
offer a Base Rate of 10.25%.
Savings Bank Deposit Rates: (as on May 19, 2014)
All the Public Sector Banks offer an interest rate of 4.00% except
Bharatiya Mahila Bank: 4.50%
IndusInd Bank: 5.50%
Kotak Mahindra Bank: 6.00%
Ratnakar Bank: 5.50%
Yes Bank: 6.00%

9. Changes in Domestic Term Deposit Rates
 IDBI Bank introduced a new bucket of 5 years with the interest rate of
9.10%, w.e.f. May 12, 2014
 PNB increased the interest rate on the maturity bucket of 271 days to < 1
year by 25 bps from 8.00% to 8.25%.
 BoB reduced the interest rates on the maturity buckets of 1 year to 6 years
3 months, > 6 years 3 months to 10 years and 1111 days by 5 bps from
9.10% to 9.05%, w.e.f. May 02, 2014.
 BoI reduced interest rates on the maturity buckets of 1 year only and > 1
year - 15 months by 20 bps from 9.25% to 9.05% w.e.f. May 15, 2014.

10. New products by various banks
Dena Bank (444 days term deposit scheme)
Dena Bank re-launched its special 444 days term deposit scheme. The scheme
is valid from May 01, 2014 . The deposit scheme is applicable only to deposits
below 1 crore and offers an interest rate of 9.15%.
ICICI Bank (NRI Pro and NRI Premia savings accounts)
NRI Pro savings account offers NRI customers added services like priority
services, preferential rates on money transfer and banking benefits for family
members in India.
NRI Premia offers all services offered by NRI Pro along with access
to a dedicated relationship manager and a travel insurance (including air
accident coverage up to 1 crore)

11. Citi Bank (Citi Prestige and Citi Ultima Infinite credit cards)
While Citi Prestige is a global credit card,
Citi Ultima Infinite is an exclusive by invite only credit card.
Federal Bank (Vidya Gold Scheme)
It provides finance to parents to meet the educational expenses of their
children. The maximum amount of credit that can be availed under this gold
loan scheme is 1 lakh. The Bank offers two interest rate options for this
scheme: 11.88% (Combo offer with new SB/RD account) and 12.55% (for
standalone customers). The repayment period for this credit scheme is upto 12
months.
Karnataka Bank (Missed Call Banking)
As part of this facility the customer gets information about his account balance
and mini statement through SMS after he/she gives a missed call from his/her
registered mobile number to Karnataka Bank’s number.

12. Which bank’s saving account do you prefer where Rate of
Return (interest rate) is high or where they provide more offers
(such as discount on Travels, Electronics etc.)?
High rate of
returns
92 60%
More offers 62 40%
Findings and suggestions:
It is observed from the above data that most of the customers i.e. 60% of the total
respondents preferred High rate of returns. Many banks always try to attract potential
customers by providing many offers to open saving account. Banks should generate
more awareness about new offers along with rate of return of saving accounts. Banks
should do joint advertisement with Make my trip, Croma etc.

13. Which bank’s home loan do you prefer where you get less
Interest rate or some other benefits (such as free life/property
insurance etc.)?
Less interest rate 79 51%
Other benefits (such as
free life/property
insurance etc.)
75 49%
Findings and suggestions:
It is observed from above responses that majority of the customers (51%) want
less interest rate and remaining (49%) want other benefits. The gap between
this is very narrow; banks can take benefit by advertising their other benefits
such as free life/ property insurance along with loans.

14. Which one will you prefer with respect to ATM
Maximum withdrawal
in one day with more
ATM charge
93 60%
Minimum withdrawal
in one day with no
ATM charge
61 40%
Findings and suggestions:
It is observed from the above responses that 60% of customers are ready to
pay some extra charges if banks allow them to withdraw more from ATM.
Banks should provide flexible withdrawal according to customers.

15. Will you ready to pay some charge if bank’s persons will
come to your home to clear doubts regarding internet
banking, phone banking , SMS banking etc?
Yes 104 68%
No 50 32%
Findings and suggestions:
It is observed form above responses that 68% of customers are ready to pay some
extra charge if Banks will provide home service , this shows customers inclination
towards services therefore Banks should take care of customers’ requirements.
Banks should appoint more number of relationship managers who can help them
in their home.

16. Are you satisfied with your banking services
Highly satisfied 34 22%
Satisfied 70 45%
Neutral 35 23%
Dissatisfied 15 10%
Highly dissatisfied 0 0%
Findings and suggestions:
It is inferred from the above responses that majority of the customers (45%) are
satisfied , 22% of customers are highly satisfied but still there are 23% of
customers in Neutral and 10% of customers are Dissatisfied so Banks should
always take feedback from customers and try to resolve customers’ problems.
Customers mainly faces problems because of bank’s timing, link failure ,
processing time, hidden charges.

17. Conclusion
Indian banking industry is very competitive and customers are very
conservative, But rising in Income and urbanization are helping to customer to
think beyond price side of products and moving towards services. So to attract
customers banks should take care more about services.

18. Thank you