Category: MBA Seminar Topics

State Bank of India:

Introduction:

In India, one of the biggest commercial bank is ‘State Bank of India’ (SBI). It commands one-fifth of loans and deposits of each and every programmed commercial bank and also contains an enormous network of about 9000 branches i.e. around 14% of all branches of bank in India.  A network of about, numerous non-banking subsidiaries and eight banking subsidiaries are included by State Bank Group which offers fund management, credit cards, merchant banking services, primary dealership in government securities, insurance and factoring services.

The eight banking subsidiaries include: State Bank of Hyderabad (SBH), State Bank of Travancore (SBT), State Bank of Indore (SBIR), State Bank of Patiala (SBP), State Bank of Bikaner and Jaipur (SBBJ), State Bank of India (SBI), State Bank of Mysore (SBM), and State Bank of Saurashtra (SBS). At present, the State Bank of India across all the time zones included a network of branches and around the world it has widened its arms. By means of its four wings such as the Foreign Offices division, International Services division, the Domestic division and the Foreign Department, the International Banking Group of SBI distributes the cross-border finance solutions in complete range.

Tata Motors is facing many problems in the market place and researcher is making different recommendations to Tata Motors and Indian Auto Industry.

Many automobile companies stated that globalization process has shown major impact on auto industry which allowed them to face many problems. In order to overcome globalization impact auto companies should try to improve their company standards in the global markets through which they can even manage competitive levels in the global markets.

Many participants stated that the buying behavior of the customers change continuously which is the major reason for the failures of automobile companies. In order to overcome this problem, companies should try to maintain customer relationship management process through which they can build a relation with the customers and can easily identify their wants and needs.

In the research survey process, many participants stated that Tata Nano has not changed the history of Indian Auto industry but it gave some competition in the first year to the auto companies with its huge expectations. Tata Motors should take this particular point into consideration that auto companies are not thinking Nano as core competence of Tata Motors. In order to prove its efficiency and improve its competitive levels Tata should make some new innovations to Nano Car which gives a huge competition to the companies and get competitive advantages to Tata Motors.

Tata Motors stated that its major competitors are Honda, Maruthi and Toyota but not only these three companies Tata should try to consider all other auto companies because every company has its own strategies core competencies and each and every company which exists in the market can be considered as the competitor for the existing companies. 

The participants from Tata Motors gave a neutral answer that Tata Nano changed the history and Tata Nano does not change the history of Indian auto industry. Tata it self is not so clear that Nano is their competitive advantage. In order to make their Nano more successful Tata should try to improve the features of Nano and turn this car into the core competence of Tata Motors. Participants from Tata even answered that Indica and Indigo along with Nano are their most successful products. But Tata is still not clear that Nano is their only successful product, Tata is trying to manage all their company products in a balanced way. But Tata should highlight Nano as their competitive advantage because no other company in the world is offering a car for only one lakh rupees which are equal to that of a two wheeler price. Tata should try to promote Nano with more advertisements in order to create awareness among the customers not only in India but even in the global markets.

Participants from Tata Motors answered that price is the major competitive advantage of Nano Car, but Tata should remember that price is not only the major constraint but many people even prefer price along with quality and features. Tata should improve the quality of their Nano car and should develop it with required features.

While introducing Nano car there are huge expectations in the market that Nano car will change the history of Indian Auto industry and it will even satisfy the low income customer at all ends. But after using Nano many customers were not satisfied with the features and quality offered in the Nano Car. The customer feedback on Nano was not so impressive especially there were many technical problems, no proper seating facility, less mileage and low quality products within the car are the major complaints on Nano. For this reason, Tata should totally consider customer feedbacks and should innovate Nano car with additional features. By increasing Nano features Tata can even increase the price on Nano upto 1.5 lakh or 2 lakhs because no other company in the world is offering cars at the range between 1.5 to 2laksh and for this reason Nano can take this as an advantage and can improve the quality and all. Even after increasing the prices Nano will be the cheapest car in the world because other car is available in the market with a price range of 1.5 to 2 lakhs.

Many existing customers of Nano answered that they prefer Nano Car because of its low price but still they are stating that quality is also important and they are suggesting that Tata should improve the features and services of Nano car in order to totally satisfy the customers.

Many customers using Nano even stated that they have faced many technical problems with Nano car and Tata should try to improve the services and should offer the new Nano cars which do not create technical problems and should even offer free services to the existing customers who are using Nano car and facing problems with it.

Many participants even answered that the advertisements given by Tata Company and the marketing staff who were appointed to market Nano cars have initiated them to buy Nano Car. For this reason, Tata should identify that advertisements and marketing staff are more helpful to Tata in selling their Nano cars and for this reason they should use new strategies in advertising and marketing process in order to attract the customers towards its company. 

 The new customers of Tata who are willing to buy Nano car answered that the major reason behind they interest towards Nano is the low price when compared with the other cars. The customers are stating that they were just in a dilemma whether to buy Nano or not because of the existing customer feedback and Nano reviews. In order to satisfy these customers Tata should innovate Nano car and should promote the car in such a way which directly attracts the customers towards Nano and improves the sales of Nano.

Questionnaires are the type of research techniques used in the interview process which includes different types of research questions related to research problem and research objectives. Questionnaires play the key role in entire research process because the actual research questions of the research process can be obtained from questionnaires. The objectives of the research process are divided into sub questions and by using different data approaches researcher will gather the information to fulfill the research questions.

Pilot test for questionnaires

The questionnaires included in the research process have undergone the pilot test through which the reliability and validity of the research process can be identified. In the pilot test process the questions are evaluated first and prepared the questions in a simple manner, so that participants can easily understand those questions. Each and every participant will be treated equally and they have all rights to express their own opinions on research topic.

The entire research process is carried out in a reliable manner and researcher followed the ethical rules and even allowed the participants to follow those ethics.

Participants are not forced to express their opinions and the answers given by participants will be considered as important information. The communication process will be carried out through phones and emails and finally the questions in the research questionnaires will be fulfilled by the answers given by participants. Researcher has conducted many mock sections for research interviews in order to complete the research process in a successful manner. 

 

Advantages of ICICI over SBI:

· With total asset of Rs.3, 744.10 billion, the ICICI bank is going up at very fast rate.

· The SBI and ICICI banks are taking different paths in human relations area.

· SBI comprises nearly one lakh employees. But it is careful in adding the headcount and by means of voluntary retirement scheme its tries to reduce the headcount.  

· Every year ICICI bank will set up regional hubs for the reason that the plans as well as the workforce will be concentrated for adding 20,000 to its headcount.

· In coming few years among employees range from 75, 000 and 1, 00, 000, the group plans will be added by ICICI.

· The ICICI bank tries to exceed the SBI bank .

Advantages of SBI over ICICI:

· Flexible loan repayment tenures are provided by the SBI.

· SBI is the second largest issuer of credit cards as well as placed to turn into a largest debit card issuer.

· In Small and Medium Enterprises (SME) financing field, the SBI restrains huge experience.

· TheIndia’s one of the oldest and largest bank is SBI and the Indian government holds the main stock of SBI. Therefore the customers trust this bank.

· The SBI bank group is planning to insert more 3, 000 branches though it comprises 10,000 branches nearly.

· Public trusts this bank a lot because this is the oldest bank. Across the country it contains 54LearningCentersand four national levelApexTrainingColleges. So this bank strives constantly in enhancing the skills of its employees. Bankers from the banks located in some other countries also attend the training programs. 

INTRODUCTION OF ICICI BANK

          Financial services and wide range of banking products are offered by ICICI Group and retail customers through a variety of delivery channels and through its specialized group companies, subsidiaries and affiliates in the areas of personal banking, investment banking, life and general insurance, venture capital and asset management. In their respective sectors ICICI Group companies have enhanced and maintained their leadership position with the support of strong customer focus.    

                   Second largestIndia’s bank is ICICI with the total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and for the year ended March 31, 2009 profit after tax is Rs. 37.58 billion. InIndia, the ICICI bank has a network of 1,451 branches and total ATM’s are 4,721 and existed in 18 countries.         

HISTORY 

1955:

              The government ofIndiaand representatives of Indian industry, the Industrial Credit and Investment Corporation of India Limited (ICICI) is incorporated at the initiative of the World Bank. In order to provide the medium and long term project financing to Indian businesses development financial institutions are created. First chairman of ICICI limited is Mr.A.Ramaswami Mudaliar. 

           ICICI emerges as the major source of foreign currency loans to Indian industry. In the Indian companies, ICICI is the first company for increasing the funds from international markets besides funding from the World Bank and other multi-lateral agencies.  

1956:

           ICICI stated that its first share is 3.5%. 

Business:

                In 1994 through ICICI Ltd., Indian development financial institution, ICICI bank was advanced. Among all private banks ICICI bank has to develop into largest commercial bank so consequently two entities are combined. In the second half of nineties to beat the Indian banking industry, with new technologies ICICI bank which is a new generation bank is in progress. VSAT technology is used in network along with systems and state-of-the-art technology in ICICI bank branches, these branches are automated fully.

With SWIFT International network, bank is having relation and network of ICICI bank is extended in 2005 as 1,910 ATMs and 562 branches. Some of the electronic channels like call centers and ATMs, internet banking, mobile banking are increased and for these channels number of customer transactions are transferred then more than 70% of customer transactions are happening.

To increase deposit franchise overseas and corporate business a small Russian banking entity, Investitsionno-Kreditny Bank (IKB) is obtained by ICICI bank. Through DBS inSingapore, Lloyds TSB inUKand Wells Fargo inUSAbanks, ICICI bank is having a number of dealings.

• To do mutual business, ICICI planned to deal with prudential plc. OfUK. Through Prudential ICICI Trust Limited and Prudential ICICI Asset Management Company duo is moderately insistent. Towards the Indian agricultural sector, to offer services ICICI bank is ready. By means of large agriculture markets, in place more than 70 agri-desks and 2000 Internet kiosks are started. 

Developments: 

• ‘Mutual Fund Sweep Account’ is started by ICICI Bank- Since to receive higher income, parking their short-term excess into liquid mutual funds when existing account holders are permitted by automatic sweeping facility. During GIC Mutual Fund and Prudential ICICI Asset Management Companies liquid fund schemes to invest an excess account, present account customers of ICICI bank are having ability.
• In ICICI, ICICI Capital Services Limited and ICICI Personal Financial Services Limited are two combined wholly-owned subsidiaries, these two subsidiaries are in progress with ICICI bank.
• Towards Rs.500 crore CD (Certificates of deposit) programme of IBL (ICICI Bank Ltd), the short-term of safety is represented as A1+rating it is allocated by ICRA.
• To start the credit cards of ICICI Bank Master Card, MasterCard International is occupying ICICI Bank. About 4, 50,000 debit cards of ICICI bank are situated where as 5, 50,000 credit cards are situated at present. In market main card issuer is ICICI bank. For every month by rate 1, 00,000, debit and credit cards are added by bank. The debit card business is the latest one where as credit card business is started 2 years back by bank. 

        At the end of December 31, 2009 profit is Rs. 30.19 billion (US$ 648.8 billion) for nine months after tax, for total resources of Rs. 3, 562, 28 billion (US$ 77 billion) at December 31, 2009 thereforeIndia’s second-largest bank is ICICI. 4,883 ATMs and 1,646 branches network in banks, inIndiaand at present in 18 countries. During specialized subsidiaries and variety of delivery channels, for retail customers and corporate customers an open series of financial services and banking products are presented by ICICI and in regions like asset management and venture capital, investment banking, life and non-life insurance it is joined.

Technology: 

In an extremely automated environment the HDFC bank functions in terms of communication systems and information technology. Towards its customers this bank is allowed to present transfer facilities of speedy funds, because every branch of this bank contains online connectivity. To deal with customers through the Automated Teller Machines (ATMs) and branch network, a multi-branch access is also offered.

In order to gain the best technology which is available internationally so as to create infrastructure for a world class bank, considerable investments and efforts were made by the bank.  Through robust and scalable systems, the business of the bank is sustained which makes sure that the clients are always provided with supreme services. 

In the internet and technology, the bank has prioritized its commitment as one of its major aims and also in web-enabling its core business an important progress has been already made. To produce a build market share and competitive advantage, the bank has been successful in influencing its market position, in all of its business. 

       In association with the VISA (VISA Electron) an International Debit Card is launched and as well as issues the Master card Maestro debit card by the first bank inIndiawhich is HDFC Bank.  In late 2001, HDFC launched its credit card business. A total card base (credit and debit cards) HDFC bank crosses over 13 million by the end of the March 2009. 

       The Bank is also one of the leading players in the “merchant acquiring” business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Introduction to SBI:

The foundation of the state bank of India is beginning in the first decade of the nineteenth century with the formation of the Bank of Calcutta in Calcutta on 1806, on 2^nd June. After three years Bank of Calcutta is re-designed as Bank of Bengal on 2^nd January of 1809. By the government of Bengal, among the Bank of British India sponsors, this bank was the first joint-stock bank. Bank of Bengal has increased its branches in the states such as Bank of Bombay on 15^th April of 1840 and Bank of Madras on 1^st July of 1843. These three Banks stands in the top most position in the Indian modern banking system. These banks are in top position until they merged with the Imperial Bank of India on 27^th January 1921.

Mainly in Anglo-Indian creations, the three presidency banks appeared to be survival therefore the local requirements of European commerce or  the compulsion of grand finance  were  not forced from outside in random manner to  modernize Indian economy.  However their evolution was modified with selected ideas from identical developments in the England and Europe as well as by the structural changes which are influenced.  These structural changes will be in both the environments of local trading as well as those in that of Indian economy relations to the Europe economy and the frame work of the global economic. 

In the country the oldest Bank is State Bank of India and a premier in the form of balance sheet size, profits, market capitalization and number of branches is going today by a significant phase of transformation and change- Behemoth it is public sector which is two hundred years old is now shifting out of its public sector legacy as well as progressing with an ability to give Foreign and private banks a run for their money.

With the strategic tie ups, banks are seeking to enter in to new business which are like General insurance, Pension funds, Private Equity, Custodial Services, point of sale, Mobile banking, Merchant Acquisition, Structured products,  Advisory services etc-  among these each and every program will have a enormous potential growth.

The bank is forging ahead to expand banks in the rural regions, with the cutting edge technology and modern new banking models. Banks are looking to cover around 100,000 villages in coming next two years. Banks are also concentrating at the top of the market, upon the capability of the whole sale banking to give array of products and services. Banks are entering into the derivative instruments and structured products and by the way it is consolidating operations of its global treasury. Now days, infrastructure is provided more by banks as well as external commercial borrowings are largely done by the banks in the country.

Front and back end process which is outdated is continuously changing by banks to the friendly process of the modern customer to develop the total customer experience.  Associated banks are networked already, now the largest banking network is offer by it to the Indian customer. Through ATMs banks are providing total or complete payments solution to its clients, bank provides nearly 8500 ATMs and additional electronic channels like debit cards, mobile banking and internet banking etc.

With 54 learning centers and four national level Apex Training Colleges, banks are continuously recruiting skilled persons has employees. These centers or colleges are spread all over the country. Bankers from the banks will attend some of the training programs in the other countries.

Banks are looking to get opportunities to its growth all over India and also internationally. Across the globe, in 32 countries 82 foreign offices are there at present. In India it contains six subsidiaries – SBICAP securities, SBI Life, SBI Capital Markets, SBI DFHI, SBI Cards and SBI Factors. These six subsidiaries form formidable group in the scenario of Indian banking. For raising its capital process is going on as well as combining its various holdings.

Banks are trying to change its old mindset, attitudes and together to take all employees on this transformation and exciting road. Internal communication program which is recently conducted which is named as “Parivartan” the bank has been covered 3300 two day work shop across the country and in a period of 100 days it covered over 130,000 employees with 400 trainers, to drive home the inclusiveness and message of change. The imagination of the employees has been fired by work shop with some other banks in India and also in other organization of public sector looking to follow the program.

In State Bank of India history the main turning point is the launch of Five Year Plan of independent India in 1951. Towards serving Indian economy, the plan aimed is in general and particular in the rural sector of the country.  By the Commercial Bank of the country including Imperial bank of India, plan is kept pending and the services are limited to the urban sector. In addition, banks were not at all equipped to respond to the growing requirements of the economic stimulation in the country which is taking shape in the rural regions. Consequently, as a whole to serve the economy and particular in rural sector, the All India Rural Credit Survey Committee suggested the formation of state-partnered and state-sponsored bank.

The Indian Economy has seen major Macro changes in:

1. Gross Domestic Product:

In the industrial cycle, uptrend and the strong fundamentals are driving the Indian economy. In the year 2005-06, the third successive year Indian economy is controlled a strong growth momentum with the real GDP and the accelerating growth is 8.4% for the year 2005-06. The growth in the double digit is recorded by the service sector to donate almost three-fourths of the incremental GDP. A reliable increase in the investment rate of domestic from 23.0% of GDP in the tear 2001-2002 to 30.1% in the year 2004-2005 encouraged a high credit growth observed during the past few years.

In the financial year 2006-2007, services sector account for major 55% of India GDP followed by 25% in the industrial sector and 20% in the agriculture sector.

FY07 Vs Q2FY06, in the GDP components growth rates are as follows:

Agriculture: 1.7%

Service: 10.7

Industry: 10.5%

FDI Confidence Index:

In the every sector of Indian economy large capital has been utilized which has been expanded by the relaxation of foreign direct investment rules. The efforts are made by the Government in liberalization the norms and guidelines for the investment through FDI. In the FDI Confidence Index,Indiastands in the second place among all the countries in the world because of the efforts put by the Indian Government.

Inflation: 

In India, since the pass-on of increase in international crude price is continued to be incomplete, the inflation remained hugely helpful because of promoted nature of prices of oil and motivated nature of growth. Inflation of WPI is raised up to 5.45% for the week ended on 18^th November 2006 as the same range is continued of 4.0-5.0% in the past. RBI has given warning continuously that the main target is to control the inflation. In the present economy money provided is increased by 18.7% approximately till 10^th of November 2006. Towards RBI efforts made towards the inflation to get a best range of 5.0-5.5%   , this will cause an important threat. 

Gross Fiscal Deficit: 

In the year 2005-2006 the ratio of the Goss Fiscal Deficit (GFD) to GDF ration was at 4.1 % as opposite to the estimated budget which is of 4.3%. In the year 2006 from April to November, Fiscal and revenue deficit are broadened to 72.8% of BE and 99.7% of BE Vs 74.7% of BE and 91.5% of BE respectively in the year 2005 from April to November. Comparing to the last month present levels are very high fiscal deficit of 58.6% of BE and 79.4% of BE for the revenue deficit. The development in the GFD make possible by the expended capital which is declined and the accessibility of disinvestments proceeds. In 2005 to 2006 GDP even though the revenue deficit is less in absolute terms will be continued at 2.7 % of the budgeted level.

A)    Price B) Quality C) Mileage C) Comforts

For the above question, among the total number of participants from, 70% of the participants answered that they buy Tata Nano Car for its price, 10% of them answered that they buy Nano for its quality, 10% of the participants stated that they buy Nano for its mileage and finally 10% of the participants stated that they buy Nano for its comforts.

Which marketing source will initiate you to purchase a Nano car?

A)    Advertisements  B) Marketing staff C) feedback and review of existing customers D) All the above

For the above question, among the total number of participants from, 30% answered that advertisements will initiate them to buy the Nano, 20% of them stated that marketing staff of Tata will initiate them to buy Nano, 20% of them stated that existing customers of Nano will initiate them to buy the Nano and finally 30% of the participants stated all the above three reasons.

What type of features are you expecting in a Nano car?

A)    Low price B) Good Mileage C) Good seating capacity D) High quality 

For the above question, among the total number of participants , 80% answered that they prefer low price feature from Nano, 10% of the participants stated that they will prefer mileage and 10% of them they will prefer seating capacity and finally 0% of them stated that they will prefer all these three features from Nano. 

Do you think a Tata Nano car is suitable for you?

A)    Yes B) No C) cant say

For this question, among the total participants, 40% answered that Nano is suitable to them and 20% of them stated that Nano is not suitable to them and finally 40% of the participants stated that they cannot specify their answer to this question.

When are to going to buy Nano car?

A)    Very soon  B) Soon C) Should think

For this question among the total number of participants 30% of them answered that they will buy Nano car very soon, 30% of them answered that they will buy Nano car soon and finally 40% of the participants stated that they will take a decision later on this aspect.

Major changes in FY 2006-07

• Normal monsoon is experienced by Rabi season.
• Whole Price Index (WPI) increased up to 5.43% in the December 16^th weekend; in the primary commodities the higher price increase will be same. In the coming weeks higher price remains high because of lower base effect.
• In FY07 there will be robust economic growth. In the FY07 GDP increased up to 8%; Agriculture services and industry raised up to 1.7%, 10.7% and 10.5% correspondingly
• Cash Reserve Ratio (CRR) have raise of 50 bps to monitor Rs. 135bn from the system. The Cash Reserve Ratio surprise with the hike rate of 50 bps but RBI’s intention will reflect on the controlling of credit off-take and liquidity management by increasing and reversing repo rate will not obtained the expected and good results because of which RBI utilizes CRR rate hike – a latest instrument for the liquidity control.
• Index of Industrial Production (IIP) development drops in October 2006. In the manufacturing sector because of the bad performance, which outline of 80% of the Index of Industrial Production index directs to a blip in its vigorous growth trend for the last 9 months. When compared to the last year the mining and electricity grew faster at 4% and 9.7% Vs 0.1% and 7.7% respectively.
• In YTD basis in the December 2006, rupee has value against dollar and yen but reduces its value continuously when compared to Euro and Pound. Actually from April 2006 to October 2006 the rupee has increased its value up to 1.8%.

In the year November 2006 exports picks up its growth back. As Bop is the base in H1FY06 exports has increased up to 23% and imports at 25.3%. this has been resulted in the trade balance of US$3bn. Growth of net invisibles by 17.6% to US$23.5bn and capital inflows at us$20.3bn (approximately 49%) abalance payment is brought to US$8.6bn (approximately 33%). 

Learning objectives:

The meaning of bank:

              The table at which the dealer in money is working is called as bench or banca in Italian. The savings and cheque accounts are offered, loans are made as well as other financial services are given, mostly profits are made from the difference among interest paid on deposits along with charged for loans,  in addition fees for accepting bills and also other services by the bank, so therefore the bank is considered as a financial institution.  The Reserve Bank Act and Banks (shareholdings) Act are the other pertinent legislation. Extensive range of powers is given to the Reserve Bank ofAustraliawhich is a central bank over the banking sector through the Reserve Bank Act. 

Banking system of India:

       In the period of British rule itself, growth is observed in the banking sector of India. The East India Company of British introduced three major banks during the first half of 19^th century such as Bank of Madras in 1843, Bank of Bengal in 1809 and Bank of Bombay in 1840. The Imperial Bank formed by merging these three banks after that the SBI took hold of this bank in the year 1955. The initial bank which is completely owned by theIndia is Allahabad Bank. In the path of RBI which is set up in the year 1935, the banks like Canara Bank, Punjab National Bank, Indian Bank and Bank of India came into existence. 

The government undertook six main private sector banks in the year 1980 and nationalization of fourteen main banks taken place in the year 1969. Below some categories are given where the Indian commercial banking system is divided.  

Types of Banks:

Central Bank:

The Government owned totally the Reserve Bank ofIndiawhich is the central bank. The Central Government governs the RBI by appointing a central board which is headed by the Governor. For functioning of all banks that operate inside the country, RBI provides guiding principles. 

Public Sector Banks:

The fourteenth main bank is the United Bank of Indiawhich is one of the Indian Public Sector Banks, in the year 1969 on July 19^th is nationalized. By the incorporation of four banks such as Hooghly Bank Ltd established in 1932, Bengal Central Bank Ltd established in 1918, Comilla Banking Corporation Ltd established in 1914 and Comilla Union Bank Ltd established in 1922, the United Bank of India Ltd is shaped in the year 1950 which is the precursor of United Bank ofIndia (Public Sector Banks).

• State Bank Group is named for the State Bank ofIndiaand its associate banks
• Twenty nationalized banks
• Public sector banks sponsor the regional rural banks mostly