RM Project Final
RM Project Final
RM Project Final
PROJECT REPORT ON
CUSTOMER RELATIONSHIP MANAGEMENT IN PUBLIC
AND PRIVATE SECTOR BANK
SUBMITTED
IN FULFILMENT OF REQUIREMENT FOR THE AWARD
OF DEGREE OF MASTERS OF COMMERCE IN BANKING
AND FINANCE
SUBMITTED BY
SHREYAS M. VAIDYA
ROLL NO. 4
MCOM (BANKING & FINANCE)
PART 2
PROJECT GUIDE
Dr. Mrs. SMITA BHIDE
SUBMITTED TO
UNIVERSITY OF MUMBAI
(2016-17)
VPMS
K. G.JOSHI COLLEGE OF ARTS &N.G. BEDEKAR
COLLEGE OF COMMERCE
DECLARATION
completed
this
project
on
CUSTOMER
SIGNATURE
PLACE:
DATE:
SHREYAS M. VAIDYA
(MCOM BANKING AND
FINANCE)
ACKNOWLEDGEMENT
PUBLIC
AND
PRIVATE
SECTOR
BANK
in the
at
Joshi-Bedekar
College
of
Arts
and
CONTENTS
1.
INTRODUCTION
2.
CUSTOMER RELATIONSHIP
MANAGEMNT
CHARACTERISTICS OF CRM
BENEFITS OFCRM
TYPES OF CRM
3.
AXIS BANK
HISTORY
CORPORATE PROFILE
CRM IN AXIS BANK
4.
PUNJAB NATIONAL BANK
ABOUT PNB
PRODUCT AND SERVICES
RELATIONSHIP STRATEGIES
RECOMMENDATION
5.
CONCLUSION
6.
BIBLIOGRAPHY
CHAPTER ONEINTRODUCTION
INTRODUCTION:
A bank is a financial intermediary that accepts deposits and
channels those deposits into lending activities, either directly
by loaning or indirectly through capital markets. A bank links
together customers that have capital deficits and customers
with capital surpluses.
Due to their importance in the financial system and influence
on national economies, banks are highly regulated in most
countries. Most nations have institutionalized a system
known as fractional reserve banking, under which banks hold
liquid assets equal to only a portion of their current liabilities.
In addition to other regulations intended to ensure liquidity,
banks are generally subject to minimum capital
requirements based on an international set of capital
standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in
the rich cities of Renaissance Italy but in many ways was a
continuation of ideas and concepts of credit and lending that
had its roots in the ancient world. In the history of banking, a
number
of banking
dynastiesnotably
the Medicis,
the Fuggers,
the Welsers,
the Berenbergs,
and
the Rothschildshave played a central role over many
centuries. The oldest existing retail bank is Monte deiPaschi
di
Siena,
while
the
bank is Berenberg Bank.
oldest
existing merchant
MEANING:
Bank is an institute which deals in money and credit. It
accepts deposits from the public and grants loan and
advances to those who are in need of fund for various
purpose. Banks encourage savings habit among individuals
and thereby makes fund available for their use as and when
require. Banks also helps in nation development by
providing credit to farmers, small scale industry and self
employee people as well as to large business houses which
lead to balanced economic development of the country.
Different people understand the meaning of a bank in
different way. For a common man bank means a storehouse
where money is stored; for a businessman it is a financial
institution and for a day to day customer it is an institution
where the cash deposit his savings.
It also helps to standard of living of people in general by
providing loans for purchase of consumer durable goods,
houses, cars, etc. Banking activities are considered to be the
life blood of the national economy. Without banking services,
trading and business activities cannot be carried on
smoothly.
Banks are the distributors and protectors of liquid capital
which is vital significance to a developing country. Efficient
administration of the banking system helps in the economic
growth of the nation.
DEFINATION OF BANK:
Indian Banking Companies Act, 1949 - Banking Company is
one which transacts the business of banking which means
the accepting for the purpose of lending or investment of
deposits money from the public repayable on demand or
HISTORY:
The first bank in India, though conservative, was established
in 1786. From 1786 till today, the journey of Indian Banking
System can be segregated into three distinct phases. They
are as mentioned below:
PHASE I - Early phase from 1786 to 1969 of Indian
Banks
PHASE II - Nationalization of Indian Banks and up to
1991
PHASE I:
The General Bank of India was set up in the year 1786. Next
came Bank of Hindustan and Bengal Bank.
The East India Company established
o Bank of Bengal (1809),
o Bank of Bombay(1840) and
o Bank of Madras (1843) as independent units and
called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial
Bank of India was established which started as private
shareholders Subscribe to comments Post Comment banks,
mostly Europeans shareholders. During the first phase the
growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and
activities of commercial banks, the Government of India
PHASE II:
Government took major steps in this Indian Banking Sector
Reform after independence. In 1955, it nationalized Imperial
Bank of India with extensive banking facilities on a large
scale especially in rural and semi-urban areas. Second phase
of nationalization Indian Banking Sector Reform was carried
out in 1980 with seven more banks. This step brought 80%
of the banking segment in India under Government
ownership.
The following are the steps taken by the Government of India
to Regulate Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act. 1955:
Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
PHASE III:
This phase has introduced many more products and facilities
in the banking sector in its reforms measure. In 1991, under
the chairmanship of M Narasimham, a committee was set up
by his name which worked for the liberalization of banking
practices.
The country is flooded with foreign banks and their ATM
stations. Efforts are being put to give a satisfactory service
to customers. Phone banking and net banking is introduced.
The entire system became more convenient and swift. The
financial system of India has shown a great deal of
resilience. It is sheltered from any crisis triggered by any
external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate
regime, the Foreign Reserves are high, the capital account is
not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.
TYPES OF BANK:
There are various types of banks. The necessity for the
variety among these banks is because each bank is
specialized in their own field. Each bank has its own
principles and policies. Different rates of interests are also
noted among these banks. All these banks are listed as
below:
Structure Of
Indian Banking
RBI
Commercial
Bank
Co-Operative
Bank
Public Sector
Bank
State CoOperative
Bank
Private Sector
Bank
District
Central CoOperative
Bank
Foreign Bank
Urban CoOperative
Bank
Regional Rural
Bank
Other CoOperative
Bank
EXIM Bank
Othe Bank
CHAPTER TWOCUSTOMER
RELATIONSHIP
MANAGEMENT
INTRODUCTION TO CRM
Contents:
Introduction to CRM
Characteristics of CRM
CRM Focus on the Relationship
INTRODUCTION:
CRM is
the
abbreviation
for customer relationship management.
Customer
relationship management (CRM) is a system for managing a
companys interactions with current and future customers. It
often involves using technology to organize, automate and
synchronize sales, marketing, customer
service,
and technical support.
With rapid globalization of business and product or service
differentiation becoming less relevant and competitive
customer relationship now is key enabler for moving
business ahead. Customer relationship has become a factor
of competitive advantage.
DEFINATION OF CRM:
CRM is business strategies that integrate people,
processes and technology to optimize the relation of an
organization with all types customer.
Customer relationship management (CRM) is a
combination of process, procedure technology and
competencies fit to analyze and satisfy customer
knowing their needs and preferences.
In simple words:
CRM is a comprehensive approach for creating
maintaining and expanding customer relationship.
The goal of CRM is to optimize Customer satisfaction and
revenue through relationship built with potential current
customer across the business functions.
Customer
Relationship
Management
concerns
the
relationship between the organization and its customers.
Customers are the lifeblood of any organization be it a global
corporation with thousands of employees and a multi-billion
turnover, or a sole trader with a handful of regular
customers. Customer Relationship Management is the same
in principle for these two examples - it is the scope of CRM
which can vary drastically.
CHARACTERISTICS OF CRM:
Well-designed CRM includes the following characteristics:
1. Relationship
management
is
a customeroriented feature with service response based on
customer input, one-to-one solutions to customers
requirements, direct online communications with
customer and customer service centers that help
customers solve their questions.
2. Sales
force
automation.
This
function
can
implement sales promotion analysis, automate tracking
of a clients account history for repeated sales or future
sales, and also co-ordinate sales, marketing, callcenters, and retail outlets in order to realize the sales
force automation.
3. Use of technology. This feature is about following the
technology trend and skills of value delivering using
technology to make up-to-the-second customer data
available. It applies data warehouse technology in
order to aggregate transaction information, to merge
the information with CRM solutions, and to provide KPI
(key performance indicators).
4. Opportunity management. This feature helps the
company to manage unpredictable growth and demand
goals
between
Customer
Model
Relationship
Management
focused
relevant
reliable
coherent
Importantly also, for effective communications it's the
message and meaning that is received that counts,
irrespective of what the communicator thinks they've said, or
written. Communications must be judged most vitally by the
reaction of the receiver. If the reaction is not good then the
communication is poor.
The information contained in a CRM system allows
communication to be directed at the correct audience, in the
correct way. The communication system must also
encourage and facilitate honest and actionable feedback.
Feedback from customers -especially complaints -is essential
for
good
organizational
performance
and
ongoing
development. Most organizations avoid, discourage and hide
from complaints. Don't. Complaints are free guidance for
improving your quality, and free opportunities to increase
customer loyalty.
strong
but
the
Increased
market
shares
Improved
service,
loyalty,and
retention
Increase
customer
revenue
Higher close
rate
Benefit of
CRM
Improve
productivity
&
profitability
Discovering
new
customers
Reduce
Expenses
Making call
Center more
efficient
As with any ICT project, ensure you work with reliable and
knowledgeable advisors, with access to cost-effective proven
solutions, which can help you to build and implement an
effective CRM software and ICT capability.
TYPES OF CRM:
There are various types of CRM applicable as per sector
needs :
SALES
INTELLIGENC
E CRM
CAMPAIGN
MANAGEMEN
T
ANALYTICAL
CRM
OPERATIONA
L CRM
COLLABORAT
IVE CRM
TYPES
OF
CRM
GEOGRAPHIC
CRM
1. Operational CRM:
Operational CRM Provides support to front office
business processes. The operational application of CRM
enables effective interaction with customers. For this
purpose various tools are used. The contact history
provides staff members with immediate access to
important information on the customer (product owned,
prior support calls etc.), eliminating the need to
individually obtain this information directly from the
customer.
2. Analytical CRM:
This is a CRM type that maintains the analysis and
operations of an organizational back-office. Here, the
sales are not done directly to the customers. This type
Contents:
Introduction
History
Operation
Service
Initiatives
Corporate profile
CRM in AXIS
INTRODUCTION:
Axis Bank Limited (formerly UTI Bank) is the third largest
private sector bank in India. It offers financial services to
customer segments covering Large and Mid-Corporate,
MSME, Agriculture and Retail Businesses. Axis Bank has its
headquarters in Mumbai, Maharashtra.
HISTORY:
Axis
Bank
began
its
operations
in 1994,
after
OPERATION:
Indian Business: As on 31-Mar-2014, the Bank had a
network of 2402 branches and extension counters and
12922 ATMs. Axis Bank has the largest ATM network among
private banks in Indiaand it operates an ATM at one of the
worlds highest sites at Thegu, Sikkim at a height of 4,023
meters (13,200 ft) above sea level.
International Business: The Bank has seven international
offices with branches at Singapore, Hong Kong, Dubai (at
the DIFC), Shanghai and Colombo and representative offices
at Dubai and Abu Dhabi, which focus on corporate lending,
trade finance, syndication, investment banking and liability
businesses. In addition to the above, the Bank has a
presence in UK with its wholly owned subsidiary Axis Bank
UK Limited.
SERVICE:
Axis
Bank
operates
in
four
segments: Treasury operations, Retail
banking, Corporate/Wholesale banking and other banking
business.
Treasury operations: The Banks treasury operation
services include investments in sovereign and
corporate debt, equity and mutual funds, trading
operations, derivative trading and foreign exchange
operations on the account, and for customers and
central funding.
Retail banking: In the retail banking category, the
bank offers services such as lending to individuals/small
businesses subject to the orientation, product and
granularity criterion, along with liability products, card
services,
Internet
banking, automated
teller
machines (ATM) services, depository, financial advisory
services, and Non-resident Indian (NRI) services.
Corporate/wholesale banking: The Bank offers to
corporate and other organizations services including
corporate relationship not included under retail
banking, corporate advisory services, placements and
syndication, management of public issues, project
appraisals, capital market related services and cash
management services.
NRI services: Products and services for NRIs that
facilitate investments in India.
Business banking: The Bank accepts income and
other direct taxes through its 214 authorized branches
at 137 locations and central excise and service taxes
(including e-Payments) through 56 authorized branches
at 14 locations.
Investment
banking:
Banks Investment
Banking business comprises activities related to Equity
Capital Markets, Mergers and Acquisitions and Private
Equity Advisory. The bank is a SEBI-registered Category
I Merchant Banker and has been active in advising
Indian companies in raising equity through IPOs, QIPs,
and Rights issues etc. During the financial year ended
31 March 2012, Axis Bank undertook 9 transactions
including 5 IPOs and 2 Open Offers.
Lending to small and medium enterprises: Axis
Bank SME business is segmented in three groups: Small
Enterprises, Medium Enterprises and Supply Chain
Finance. Under the Small Business Group a subgroup for
financing micro enterprises is also set up.Axis bank is
the first Indian Bank having TCDC cards in 11
currencies.
Agriculture banking: 759 branches of the Bank
provide banking services, including agricultural loans,
to farmers. As on 31 March 2013, the Banks
outstanding loans in the agricultural sector was INR 148
billion, constituting 7.5% of its total advances.
INITIATIVES:
The Business Gaurav SME Awards: In 201112, Axis
Bank set up 6 SME centers and SME cells each across
the country, taking the total number to 32 SME Centers.
The Bank also organized the 'Business Gaurav SME
Awards' in association with Dun & Bradstreet to
recognize and award achievements in the SME space.
Financial inclusion: Till March 2012, the Bank had
CORPORATE PROFILE:
Axis Bank is the third largest private sector bank in India.
Axis Bank offers the entire spectrum of financial services to
CRM is
the
abbreviation
for customer relationship management.
Customer
relationship management entails all aspects of interaction
that a company has with a customer, whether it is sales or
service-related. While the phrase customer relationship
management is most commonly used to describe a businesscustomer relationship, CRM systems are also used to
manage business contacts, clients, contract wins and sales
leads. "CRM" is a term, collectively used to refer to a
combination of strategy & software.
CRM at Axis involves increased communication between the
bank and its present and prospective customers. Its
philosophy focuses on each and every customers
satisfaction.
CRM facilitated coordination of multiple business functions &
multiple channel of communication with the customers to
carry out customer management more efficiently. It also
automated the process flow tracking in the product sales
process and helped generate customized reports and
promote cross-selling.
Business Metrics
Marketing Focus and Technology
Business Focus:
There are various components of CRM like customer
information, sales, marketing trends and marketing efficacy
that acted in tandem to improve relationship between AXIS
and its consumers. AXIS captured customer data and
analyzed them while dealing with customers at these very
touch points. A CRM solution from Siebel was implemented
for the automation of customer handling in all key retail
products of the Group. The solution allows customer service
agents to track all customer complaints and requests. It also
allows target setting and centralized tracking of turnaround
times for request fulfillment. The solution went live in phases
CONTENTS
About PNB
Products and services
Business objective
PNB before implementing CRM
Customer relationship strategies adopted by PNB
Relationship strategies
Recommendations
About PNB
Punjab National Bank Ltd was the result of the efforts of farsighted visionaries and patriots, among whom were persons
like Lala Lajpat Rai, Mr. E C Jessawala, Babu Kali Prasono Roy,
Lala Harkishan Laland Sardar Dyal Singh Majithia.
Incorporated under the Act VI of 1882, Indian Companies Act,
the Bank commenced operations on April 12, 1895 from
Lahore, with an authorised total capital of Rs 2 lac and
working capital of Rs 20,000. Prophetically, the Bank chose
"Stability" as its telegraphic address, as the future course of
events were to prove - the Bank withstood various financial
crises including the trauma in the form of partition of India
when the Bank had to close 92 offices (33%) in west Pakistan
which constituted 40% of its deposits and 15 of its staff
fell victims to the frenzy. The registered office was shifted to
Delhi and the Bank honored all the deposit claims of the
refugees even on the basis of whatever little evidence they
could produce. Subsequently, the Bank registered impressive
performance and grew from strength to strength.
A pioneer throughout, the Bank distinguished itself by
appointing auditors in 1895 long before it was mandatory;
introduced the "teller" system in 1944 (another first);
established profit sharing bonus, provident fund and
voluntary outside audit well before they formed keystones of
good management.
After nationalisation came in 1969 the Bank, keeping with
the economic ideology of catalyzing development and
amelioration of poverty by funding various self-employment
schemes, PNB expanded its presence rapidly in unbanked
areas. With its large presence throughout the country and
with a view to strengthening the rural credit delivery system,
FD Schemes
Loans
Housing, Personal, Educational, Property etc
Cards
Nomination Services
Social Banking
Agriculture Credit
Krishi Card
Schemes for Women
Corporate Banking
Loan against future lease rentals
Exim Finance
Cash Management
Traders Finance
Schemes for SSI Sector
Business Objective
Vision
To be a Leading Global Bank with Pan India footprints and
become a household brand in the Indo-Gangetic Plains
providing entire range of financial products and services
under one roof"
Mission
Relationship strategies:
CRM ( customer relationship management) solution deployed
across all the branches of 11 identified circles. This enabled
the marketing teams to effectively implement their strategy,
making good use of higher visibility. The CRM helps the bank
now to better retain existing customers by cross-selling and
up-selling, to attract new customers by offering various
value added products and services, and even convert loss
making customers into profitable ones.
Recommendations
A Major revamp of its Customer care- A complete
over hauling of its customer care department is
required so as to reduce complaints of customer in turn
which may affect its working.
Penetration into Rural Market with E- Commerce
Facility -Though it is one of the strategies of PNB to
enter deeply into rural sector, but this step has to be
taken up seriously and as soon as possible so as to tap
the market the rural market easily and these services
should be well equipped with E-Commerce features
mainly like Tele-banking and ATMs etc.
Concentrate on Building Brand Image-PNB is very
well known institution for investing purposes and as
well as for its social practices , PNB should further look
to enhance this image and shed the image of being a
lethargic PSU entity
Reduce Non Performing Assets-It has become a
necessity for PNB to reduce its NPAs
Developing strong cultural values
Social Integrity
Bonding with customers
Responsiveness
Fast & Decentralized decision making
Awards and Incentives based pay structure
Globalization
CONCLUSION
The aim of the banks is to provide state-of-the-art, low cost
and efficient banking services, with a focus on increasing
fee-based income. New innovative products are been
offered, even a small investor is able to invest in such
products.
Indias financial services sector is expected enjoy generally
strong growth during coming years, driven by rising personal
incomes, financial sector liberalization and the growth of a
more consumer oriented, credit-oriented culture. This is
expected to lead to increasing demand for financial
products, including consumer loans as well as investment
products.
Banks are the Financial Institution which satisfies the
individual & group goals with proper systems of rules,
regulations, policies, services, procedures& strategies. To
achieve the goals and objectives the main component of the
banks are the customers.
BIBLIOGRAPHY
All this information related to customer relationship
management is taken from internet and some part is
referred form textbooks
Internet is the key role for this project research
www.businessstandards.com
www.timesofindia.com
www.punjabnational.in
www.axisbank.com
www.wikipidea.com