A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. In other words, an institution where one can place and borrow money and take care of financial affairs ABOUT The Banking sector in India has always been one of the most preferred avenues of employment. In the current decade, this has emerged as a resurgent sector in the Indian economy.
As per the McKinsey report ‘India Banking 2010’, the banking sector index has grown at a compounded annual rate of over 51 per cent since the year 2001, as compared to a 27 per cent growth in the market index during the same period. It is projected that the sector has the potential to account for over 7. 7 per cent of GDP with over Rs. 7, 500 billion in market cap, and to provide over 1. 5 million jobs.
Today, banks have diversified their activities and are getting into new products and services that include opportunities in credit cards, consumer finance, wealth management, life and general insurance, investment banking, mutual funds, pension fund regulation, stock broking services, custodian services, private equity, etc. Further, most of the leading Indian banks are going global, setting up offices in foreign countries, by themselves or through their subsidiaries. ICICI is India’s second-largest bank with total assets of Rs. 3,663.
74 billion (US$ 76 billion) at September 30, 2009 and profit after tax Rs. 19. 18 billion (US$ 398. 8 million) for the half year ended September 30, 2009. The Bank has a network of 1,588 branches and about 4,883 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.
The Bank currently has 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. ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
HISTORY: 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 all-stock 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 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 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. AXIS BANK, formerly UTI BANK, is a financial services firm that had begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd. , National Insurance Company Ltd.
, The New India Assurance Company, The Oriental Insurance . Corporation and United India Insurance Company UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank’s managing director and CEO on 20 April 2009. ABOUT AXIS BANK Axis Bank was the first of the new private banks to have begun operations in
1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI – I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i. e. National Insurance Company Ltd. , The New India Assurance Company Ltd. , The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 407. 44 crores with the public holding (other than promoters and GDRs) at 54.
51%. The Bank’s Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1042 branches (including 56 Service Branches/CPCs as on 30th June 2010). The Bank has a network of over 4474 ATMs (as on 30th June 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.
As on the year ended 31 March 2009 the Bank had a total income of 13,745. 04 crore (US$ 2. 98 billion) and a net profit of 1,812. 93 crore (US$ 393. 41 million). On 24 February 2010, Axis Bank announced the launch of ‘AXIS CALL & PAY on atom’, a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment service over IVR. PARTICULARS| AXIS BANK| ICICI BANK| PRODUCT| The main products of AXIS Bank are Saving Account, Current Account and Demat Account.
The other products are Home loan, personal loan, Insurance, Credit cards, etc. THE OTHER PRODUCTS ARE:Product under banking field: * Saving Account * Current Account * Forex Department * Salary Accounts Products under AXIS sales are: * Home loan * Personal loan, * Demat Account | The main product of ICICI Banks are deposits, investment, NRI services, loans, bank assurance, cards etc. THE OTHER PRODUCTS ARE:Product under banking field: * Saving account * Senior citizen deposit services * Young stars * fixed deposit * recurring deposit * roaming currency accountproduct under ICICI’S sales are:INVESTMENT 1.
ICICI Bank Tax Saving Bonds 2. Government of India Bonds 3. Investment in Mutual Funds 4. Initial Public Offers by Corporate 5. Investment in “Pure Gold” 6. Foreign Exchange Services 7. Senior Citizens Savings SchemeANYWHERE BANKINGLOANS:a) Home Loansb) Personal Loansc) Car Loansd) Two Wheeler Loanse) Commercial Vehicle Loansf) Loans against SecuritiesCARDSa) Credit Cardb) Debit cum ATM Cardc) Travel CardDEMANT SERVICESNRI SERVICES| PRICE| The price of the product depends upon the services provided by the Bank on the respective product to the customers.
Detailed pricing changes from time to time and the same can be found on the website of Axis bank. | Pricing Bank Products Starts With Three Basic Questions. 1. What rate does the bank need to meet its financial objectives? 2. What is the market rate for the core product? 3. What would the bank have to do to sales and operations to make its rates the most competitive in its market? | PLACE| Place plays an important role in tangibilizing service offerings. Quality of service is perceived by many customers in the form of place of delivery- location appeal, interiors, ambience, etc.
If a bank is located in a crowded market the place or location will be a negative tangibilizes. Providing excellent tangibles in the form of place or location and interiors is particularly important for appealing to the customers segment. More recently, some of the private banks in India like AXIS Bank are providing very attractive tangibles in the form of their locations and exteriors. | This component of marketing mix is related to the offering of services. The services are sold through the branches.
The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches. | PROMOTION| Promotion can tangibilize services in different forms: * Visualization * Association * Physical representation * Documentation. Visualization tangibilizes services through hoardings, TV and print campaigns or advertisements. Physical representation in services has a good promotional appeal to customers like use of colors to symbolize wealth and status.
Service providers use documentation in their promotions in support of their claims for dependability, popularity and responsiveness| * Advertising: Television, radio, movies, theatres * Print media: hoardings, newspaper, magazines * Publicity: road shows, campus visits, sandwich man, Sponsorship * Sales promotion: gifts, discount and commission, incentives, etc. * Personal selling: Cross-sale (selling at competitors place), personalized service. * Telemarketing: ICICI one source Call center (mind space)| PEOPLE| People are a common factor in every service.
And people tangibilize services. Good people (means good performance) make good or successful services. Bad performers deliver bad services. | An employee plays an important role in the marketing operations of a service organization. To realize its potential in bank marketing, ICICI become conscious in its potential in internal marketing – the attraction, development, motivation and retention of qualified employee-customers through need meeting job-products. Internal marketing paves way for external marketing of services.
In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way. If the people don’t meet customers’ expectations, then neither does the service. Therefore, investing in people quality in service business means investing in product quality. | PROCESS| * Customer defined business process- Process innovations and continuous improvement through people involvement. * Result oriented approach- Each process has been designed by first planning the desired results.
* Axis Bank is constantly taking initiatives to offer the best in class service that seek to enhance customer experience| 1. STANDARDIZATION 2. CUSTOMIZATION 3. NUMBER OF STEPS 4. SIMPLICITY 5. COUSTOMER INVOLMENT| PHYSICAL EVIDENCE| * Reduce paper usage- Due to technological innovations such as use of Finacle software for core banking solutions. * It has positioned itself as a bank which gives higher standard of services through product innovation. * Satisfies the diverse need of individual and corporate clients.
* It is customer centric, and service oriented. | Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. THEY INCLUDE: * Internet/web pages * Paperwork * Brochures * Furnishings * Business cards * The building itself (such as prestigious offices or scenic headquarters)The physical evidences also include signage, reports, punch lines, other tangibles, employee’s dress code. |