Description
The pricing strategies, competitive strategies, marketing strategies of public sector banks like bank of baroda, union bank of india.
Public Sector Banks: Strategies Adopted
Bank of Baroda
? Established in the year 1908 in Baroda ? Third largest National Bank in the country
? Presence in across 25 countries around the
world
? 3228 branches across the country
? 1443 ATM’s installed till date
Services Offered
Various banking products and services are offered to its customers-? ? ? ? ? ? ? ? ? ? ?
Retail Banking Rural/Agri Banking Wholesale Banking SME Banking Internet Banking NRI Remittances Baroda e-Trading Interest Rates Deposit Products Loan Products ATM / Debit Cards
Pricing Strategies
? The pricing decisions or the decisions related to
interest and fee or commission charged by banks
? The pricing policy of a bank is considered important
for raising the number of customers
? Quality of service provided has direct relationship
with the fees charged
Contd…
? The banking organizations frame two- fold
strategies.
? First is concerned with interest and fee charged
to the borrowers.
? Second strategy is related to the interest paid to
the account holders.
Interest Rate s on Term Deposits & NRO Deposits (W.E.F 02.08.2010) NRI and Domestic :
Maturity Range
Deposit [Per Annum](Less than Rs. 1 Cr. ) 2.50% 3.00%
7 days to 14 days 15 days to 45 days
46 days to 90 days
91 days to 180 days 181 days & above but less than 1 year 1 year & above but less than 2 years
4.00%
5.50% 6.00% 7.00%
2 years and above upto 10 years
7.25%
Competitive Strategies
? Quality of Services and Quickness? Ultimately it is the service which the customers are
looking for.
? Launching new products suiting to the customers
needs
? Technological advancements? Number of ATM’s installed
? Internet Banking and Mobile Banking
? Pricing? Pricing policy is concerned with the interest rate
Union Bank of India
?GOOD PEOPLE TO BANK WITH
?.
? Union Bank of India was flagged off by Mahatma
Gandhi. ? Headquarter in Kolkata serves more than 20 million customers across 28 states. ? Union Bank of India has around 2261 branches across the country and 939 ATMs. ? It has overseas branches i.e in Abu Dhabi, Hong Kong, Sanghai, Sydney, Beijing,London.
Services Offering
? Accounts and Deposits ? Insurance and Investment
? Personal Banking
? NRI Banking ? Corporate Banking
? Internet Banking
? Mobile Banking ? Online Bill pay ? Security Alert: E-mail/Sms/phishing frauds
Contd.….
? MSME Banking ? ATMs
? Online Trading
? Railway Ticket Reservation ? Grievance Online
? Call Centre(24*7)
Products Offering
? Credit Card
? International Debit Card
? Ashiana Suraksha ? Union e-Remit ? Union Life Guard ? Online Tax Payment ? Union Bullet ? DGFT online
Contd…..
? Union DEMAT
? Railway e-ticketing Kiosk
INTEREST RATE ON FIXED DEPOSIT(<1 YR)
BANK NAME
UBI SBI IDBI AXIS HDFC ICICI Deutsc he Std. Charted 15-29 days 3.00 4.00 2.75 2.50 2.25 30-45 days 3.00 4.00 2.75 3.00 3.00 46-60 days 4.00 4.00 4.25 3.50 3.50 61-90 days 4.00 4.00 4.25 4.00 3.75 91-120 days 4.50 4.75 5.50 5.25 5.25 120179 days 4.50 4.75 5.50 5.25 5.25 180270 days 5.00 6.00 6.50 6.25 5.50 271364 days 5.75 6.00 6.50 6.50 6.25
3.50 2.00
5.15
3.75 2.10
5.30
3.75 2.20
5.35
4.25 2.30
5.40
5.50 2.45
5.55
5.50 2.60
5.55
6.00 3.60
5.60
6.50 4.25
5.60
BANK NAME UBI SBI IDBI AXIS HDFC ICICI Deutsche Std. Charted
1 year < 2 years 6.75 6.75 7.25 7.10 7.00 6.50
2 years < 3 years 7.00 7.00 7.50 7.35 7.50 7.25
3 years < 5 years 7.25 7.25 7.75 7.00 7.50 7.75 6.10
4.60
5.70
5.70
6.25
6.50
70 60
50
40 30 20 10
YoY Growth (%) PAT
0
2008 2009 2010 2011
Customer Retention Strategy
? Interest rate
? Improving service quality
? More Loan facilities ? Increasing no. of ATMs
Target Customer
? Segmenting on the basis of Location, Purchasing
Power of population. ? Mainly they are targeting all population segments. ? They have special charges, loans for each categories of population like student, jobholders, aged person etc.
Differentiate in some parameters
Outlook Money commissioned market research (DELHI,KOLKATA,MUMBAI,BANGALORE)— CUSTOMER FRIENDLY---1.ICICI 2.CITIBANK 6.ING-Vysya and SOUTH INDIAN BANK 7.UTI 12.BOB 16.SBI. UBI(27th)----NOT IN TOP 20 BANK
Service quality
HSBC 2. ABN-AMRO 3. SOUTH INDIAN BANK 4. FEDERAL BANK 5. INDUSIND BANK 6. Karur Vysya Bank 7. ING Vysya Bank SBI,UBI(19),BOB,BOI –not in top 10.
1.
ATM Service
1.ICICI 2.SBI 34.UBI
Loans Speed of disbursal
SBI 2. BOB 3. BOI 4. ICICI 5. HDFC 23.UBI
1.
Phone/Net banking
HDFC 2. IOB 3. Syndicate Bank 4. Bank of Baroda 5. ING Vysya Bank 6. IndusInd Bank UBI NOT IN TOP 20.
1.
Weakness
? Less Manpower
? Less no. of branches all over India
? Un-organized Infrastructure ? Less profit ? Less Promotion ? Less Govt. businesses
SOURCE: Branch Manager, civil lines, Allahabad
Marketing strategies
? Financial inclusion & Rural – Microfinance
–In the quest for new markets and customer segments, as well as with the RBI directives in this area, UBI is looking at the rural and unbanked segments in a new light as a huge business opportunity.
? Technological innovations & challenges
– UBI aggressively adopting the latest technology in order to improve product offerings, customer service, operational efficiency and risk management systems.
? Consolidation –The process of consolidation in India aims at ironing out these deficiencies. – UBI is looking forward for consolidation.
? Financing rapid industrial growth
–With the Indian economy growing at a blistering pace on the
back of strong industrial and services growth, the Indian banks are looking to build up capacity to meet future demand. –UBI contributing a pivotal role in financing this industrial growth.
Some more points to be discuss….
? Depend on available fund- leads to fluctuating
rate of interest. ? Changing rate of interest-different response from customer directly to manager or employees. ? Being small and growing bank-high expectation of customer. ? Trying to do more promotion through Brand sponsorship.
Contd….
? Trying to increase the manpower and improving
infrastructure to compete specially SBI, AXIS, HDFC bank, Bank of Baroda etc. ? Opening many branches with ATM within few years. ? Trying to serve maximum facilities to their customers to retain them. ? They have not such specific Strategies to retain customers.
SUGGESTIONS:
? UBI and BOB has less number of branches in Rural areas. ? More ATM’s should be installed in Rural areas and in Urban
areas. ? Technological innovation ? Pricing strategies ? More new products and services in competitive market. ? Attractive Deposit rate and Interest rate. ? Infrastructure improvement ? More no. of Manpower ? Aggressive selling strategies ? Recruitment of Salesperson. ? More promotion in rural as well as in urban areas
References
? www.unionbankofindia.co.in
? www.bankofbaroda.com
? www.bobcapitalmarkets.com ? en.wikipedia.org/wiki/B.o.B ? en.wikipedia.org/wiki/Union_Bank_of_India ? www.rupeetimes.com/banks/union_bank_of_indi
a.html ? www.timesofmoney.com/remittance/jsp/ubi_remit home.jsp ? UBI,civil lines, Allahabad ? BOB, civil lines , Allahabad
doc_551262232.pptx
The pricing strategies, competitive strategies, marketing strategies of public sector banks like bank of baroda, union bank of india.
Public Sector Banks: Strategies Adopted
Bank of Baroda
? Established in the year 1908 in Baroda ? Third largest National Bank in the country
? Presence in across 25 countries around the
world
? 3228 branches across the country
? 1443 ATM’s installed till date
Services Offered
Various banking products and services are offered to its customers-? ? ? ? ? ? ? ? ? ? ?
Retail Banking Rural/Agri Banking Wholesale Banking SME Banking Internet Banking NRI Remittances Baroda e-Trading Interest Rates Deposit Products Loan Products ATM / Debit Cards
Pricing Strategies
? The pricing decisions or the decisions related to
interest and fee or commission charged by banks
? The pricing policy of a bank is considered important
for raising the number of customers
? Quality of service provided has direct relationship
with the fees charged
Contd…
? The banking organizations frame two- fold
strategies.
? First is concerned with interest and fee charged
to the borrowers.
? Second strategy is related to the interest paid to
the account holders.
Interest Rate s on Term Deposits & NRO Deposits (W.E.F 02.08.2010) NRI and Domestic :
Maturity Range
Deposit [Per Annum](Less than Rs. 1 Cr. ) 2.50% 3.00%
7 days to 14 days 15 days to 45 days
46 days to 90 days
91 days to 180 days 181 days & above but less than 1 year 1 year & above but less than 2 years
4.00%
5.50% 6.00% 7.00%
2 years and above upto 10 years
7.25%
Competitive Strategies
? Quality of Services and Quickness? Ultimately it is the service which the customers are
looking for.
? Launching new products suiting to the customers
needs
? Technological advancements? Number of ATM’s installed
? Internet Banking and Mobile Banking
? Pricing? Pricing policy is concerned with the interest rate
Union Bank of India
?GOOD PEOPLE TO BANK WITH
?.
? Union Bank of India was flagged off by Mahatma
Gandhi. ? Headquarter in Kolkata serves more than 20 million customers across 28 states. ? Union Bank of India has around 2261 branches across the country and 939 ATMs. ? It has overseas branches i.e in Abu Dhabi, Hong Kong, Sanghai, Sydney, Beijing,London.
Services Offering
? Accounts and Deposits ? Insurance and Investment
? Personal Banking
? NRI Banking ? Corporate Banking
? Internet Banking
? Mobile Banking ? Online Bill pay ? Security Alert: E-mail/Sms/phishing frauds
Contd.….
? MSME Banking ? ATMs
? Online Trading
? Railway Ticket Reservation ? Grievance Online
? Call Centre(24*7)
Products Offering
? Credit Card
? International Debit Card
? Ashiana Suraksha ? Union e-Remit ? Union Life Guard ? Online Tax Payment ? Union Bullet ? DGFT online
Contd…..
? Union DEMAT
? Railway e-ticketing Kiosk
INTEREST RATE ON FIXED DEPOSIT(<1 YR)
BANK NAME
UBI SBI IDBI AXIS HDFC ICICI Deutsc he Std. Charted 15-29 days 3.00 4.00 2.75 2.50 2.25 30-45 days 3.00 4.00 2.75 3.00 3.00 46-60 days 4.00 4.00 4.25 3.50 3.50 61-90 days 4.00 4.00 4.25 4.00 3.75 91-120 days 4.50 4.75 5.50 5.25 5.25 120179 days 4.50 4.75 5.50 5.25 5.25 180270 days 5.00 6.00 6.50 6.25 5.50 271364 days 5.75 6.00 6.50 6.50 6.25
3.50 2.00
5.15
3.75 2.10
5.30
3.75 2.20
5.35
4.25 2.30
5.40
5.50 2.45
5.55
5.50 2.60
5.55
6.00 3.60
5.60
6.50 4.25
5.60
BANK NAME UBI SBI IDBI AXIS HDFC ICICI Deutsche Std. Charted
1 year < 2 years 6.75 6.75 7.25 7.10 7.00 6.50
2 years < 3 years 7.00 7.00 7.50 7.35 7.50 7.25
3 years < 5 years 7.25 7.25 7.75 7.00 7.50 7.75 6.10
4.60
5.70
5.70
6.25
6.50
70 60
50
40 30 20 10
YoY Growth (%) PAT
0
2008 2009 2010 2011
Customer Retention Strategy
? Interest rate
? Improving service quality
? More Loan facilities ? Increasing no. of ATMs
Target Customer
? Segmenting on the basis of Location, Purchasing
Power of population. ? Mainly they are targeting all population segments. ? They have special charges, loans for each categories of population like student, jobholders, aged person etc.
Differentiate in some parameters
Outlook Money commissioned market research (DELHI,KOLKATA,MUMBAI,BANGALORE)— CUSTOMER FRIENDLY---1.ICICI 2.CITIBANK 6.ING-Vysya and SOUTH INDIAN BANK 7.UTI 12.BOB 16.SBI. UBI(27th)----NOT IN TOP 20 BANK
Service quality
HSBC 2. ABN-AMRO 3. SOUTH INDIAN BANK 4. FEDERAL BANK 5. INDUSIND BANK 6. Karur Vysya Bank 7. ING Vysya Bank SBI,UBI(19),BOB,BOI –not in top 10.
1.
ATM Service
1.ICICI 2.SBI 34.UBI
Loans Speed of disbursal
SBI 2. BOB 3. BOI 4. ICICI 5. HDFC 23.UBI
1.
Phone/Net banking
HDFC 2. IOB 3. Syndicate Bank 4. Bank of Baroda 5. ING Vysya Bank 6. IndusInd Bank UBI NOT IN TOP 20.
1.
Weakness
? Less Manpower
? Less no. of branches all over India
? Un-organized Infrastructure ? Less profit ? Less Promotion ? Less Govt. businesses
SOURCE: Branch Manager, civil lines, Allahabad
Marketing strategies
? Financial inclusion & Rural – Microfinance
–In the quest for new markets and customer segments, as well as with the RBI directives in this area, UBI is looking at the rural and unbanked segments in a new light as a huge business opportunity.
? Technological innovations & challenges
– UBI aggressively adopting the latest technology in order to improve product offerings, customer service, operational efficiency and risk management systems.
? Consolidation –The process of consolidation in India aims at ironing out these deficiencies. – UBI is looking forward for consolidation.
? Financing rapid industrial growth
–With the Indian economy growing at a blistering pace on the
back of strong industrial and services growth, the Indian banks are looking to build up capacity to meet future demand. –UBI contributing a pivotal role in financing this industrial growth.
Some more points to be discuss….
? Depend on available fund- leads to fluctuating
rate of interest. ? Changing rate of interest-different response from customer directly to manager or employees. ? Being small and growing bank-high expectation of customer. ? Trying to do more promotion through Brand sponsorship.
Contd….
? Trying to increase the manpower and improving
infrastructure to compete specially SBI, AXIS, HDFC bank, Bank of Baroda etc. ? Opening many branches with ATM within few years. ? Trying to serve maximum facilities to their customers to retain them. ? They have not such specific Strategies to retain customers.
SUGGESTIONS:
? UBI and BOB has less number of branches in Rural areas. ? More ATM’s should be installed in Rural areas and in Urban
areas. ? Technological innovation ? Pricing strategies ? More new products and services in competitive market. ? Attractive Deposit rate and Interest rate. ? Infrastructure improvement ? More no. of Manpower ? Aggressive selling strategies ? Recruitment of Salesperson. ? More promotion in rural as well as in urban areas
References
? www.unionbankofindia.co.in
? www.bankofbaroda.com
? www.bobcapitalmarkets.com ? en.wikipedia.org/wiki/B.o.B ? en.wikipedia.org/wiki/Union_Bank_of_India ? www.rupeetimes.com/banks/union_bank_of_indi
a.html ? www.timesofmoney.com/remittance/jsp/ubi_remit home.jsp ? UBI,civil lines, Allahabad ? BOB, civil lines , Allahabad
doc_551262232.pptx