Vijaya Bank Project

Executive Summary The study is done to find the marketing activities of Vijaya bank. The classification of its product profile and its competitiveness with comparison to other bank was analyzed for. The balance sheet of the bank was analyzed and compared with the past year balance sheets and ratio analysis was done to find the profitability, liquidity and leverage ratios. The project and the survey were guided throughout by experts in specific areas.

The analyzer had prepared a questionnaire at the beginning to start a survey of the marketing activity of the bank. A thorough industrial analysis comprising with the company profile is done. The project was also on the basis of some of the valuable inputs from the customers of the particular bank to find out the positioning of the banks service. The survey was done on some of the randomly selected branches.

The major findings were that the bank is lagging behind in video advertisements and it has a tough competition from the corporation and syndicate bank. The bank is much more customer service oriented and the workforce present is much impressive. The product profile of the bank is also impressive where it is covering all the sections and places in the society. The bank are also high on practicing corporate social responsibility. It was also seen that the bank is very much concentrating in the print-advertisement section and also customer call service. It is also the second bank in India to start with the mobile banking system, which has a good customer response. The NPA ratio was fair in all the branches as consulted in the research and its increasing number of branches across India was showing the progress of the bank.

1

Research Design

It is the conceptual structure within which the research is conducted. It constitutes the blue print for the collection, measurement and analysis of data. The design includes an 2

outline of what the researcher will do from writing the hypothesis and its operational implication to the final analysis of data. It constitutes the steps taken beginning with the collection of data, classifying, analyzing and interpretation, processing and finally putting in textual form. This is one important chapter of project and can be considered as skeletal of project. ➢ Objective of the study: To understand the analytical framework of project

marketing and to analyze mechanism at bank. ➢ To familiarize with the interrelationship among various aspects of banking in Vijaya bank. ➢ To understand the importance of promotional and market analysis. ➢ To study the evaluations and understand the working in bank. Scope of your study: The scope of the study is limited to marketing activity of Vijaya Bank (branches). It will give an in depth theoretical and practical knowledge about the marketing aspects. This study also covers ratio analysis, of the balance sheet of the bank and also analyses the marketing activity of the bank. Methodology and limitation: Methodology of Data Collection As regarded to methodology, normally both quantitative and qualitative approaches are adopted. In order to collect the data, this study brings a live analysis based on the live data collected from secondary type of data. The techniques of ratio analysis have been made use for the analysis of the financial statement of the bank. ➢ Interacting with executives, functional in charge of various areas and departments discussing informally. ➢ Referring to the secondary that is, various project reports prepared by the bank and desk guides available with the bank. ➢ Visiting official website of the bank and other related websites. ➢ Questionnaire was prepared for survey. ➢ Referring to news papers and various business magazines.

3

Limitation of the study ➢ The study is limited to then marketing activity of Vijaya Bank. The

investigator could not cover all the branches, which are providing similar services. ➢ The data recorded was presumed to be authentic ➢ This study curtails comparison, as it is within the purview of only one organization.

4

Industry Profile

Overview Banking in India has a long and elaborate history of more than 200 years. The beginning of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal, was established. But the industry changed rapidly and drastically, after the 5

nationalization of banks in 1969. As a result, the public sector banks began experiencing numerous positive changes and enormous growth. Then came the much-talked-about liberalization and economic reforms that allowed banks to explore new business opportunities and not just remain constrained to generating revenues from mere borrowing and lending. This provided the Indian banking scenario a remarkable facelift that only continues to get better with time. However, even today, despite the foray of foreign banks in the country, nationalized banks continue to be biggest lenders in the country. This is primarily due to the size of the banks and the penetration of the networks. Nature of the Industry Banks safeguard money and valuables and provide loans, credit, and payment services, such as checking accounts, money orders, and cashier’s checks. Banks also may offer investment and insurance products, which they were once prohibited from selling. As a variety of models for cooperation and integration among finance industries have emerged, some of the traditional distinctions between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks continue to maintain and perform their primary role—accepting deposits and lending funds from these deposits. There are several types of banks, which differ in the number of services they provide and the clientele they serve. Although some of the differences between these types of banks have lessened as they begin to expand the range of products and services they offer, there are still key distinguishing traits. Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and governments. These banks come in a wide range of sizes, from large global banks to regional and community banks. Global banks are involved in international lending and foreign currency trading, in addition to the more typical banking services. Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multi-state area that provide banking services to individuals. Banks have become more oriented toward marketing and sales. As a result, employees need to know about all types of products and services offered by banks. Community banks are based locally and offer more personal attention, which many individuals and small businesses prefer. In recent years, online banks— which provide all services entirely over the Internet—have entered the market, with some 6

success. However, many traditional banks have also expanded to offer online banking, and some formerly Internet-only banks are opting to open branches. Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest group of depository institutions. They were first established as community-based institutions to finance mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals. Credit unions are another kind of depository institution. Most credit unions are formed by people with a common bond, such as those who work for the same company or belong to the same labor union or church. Members pool their savings and, when they need money, they may borrow from the credit union, often at a lower interest rate than that demanded by other financial institutions. Federal Reserve banks are Government agencies that perform many financial services for the Government. Their chief responsibilities are to regulate the banking industry and to help implement our Nation’s monetary policy so our economy can run more efficiently by controlling the Nation’s money supply—the total quantity of money in the country, including cash and bank deposits. For example, during slower periods of economic activity, the Federal Reserve may purchase government securities from commercial banks, giving them more money to lend, thus expanding the economy. Federal Reserve banks also perform a variety of services for other banks. For example, they may make emergency loans to banks that are short of cash, and clear checks that are drawn and paid out by different banks. Interest on loans is the principal source of revenue for most banks, making their various lending departments critical to their success. The commercial lending department loans money to companies to start or expand a business or to purchase inventory and capital equipment. The consumer lending department handles student loans, credit cards, and loans for home improvements, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to purchase real estate. The money to lend comes primarily from deposits in checking and savings accounts, certificates of deposit, money market accounts, and other deposit accounts that consumers and businesses set up with the bank. These deposits often earn interest for the 7

owner, and accounts that offer checking provide an easy method for making payments safely without using cash. Deposits in many banks are insured by the Federal Deposit Insurance Corporation, which ensures that depositors will get their money back, up to a stated limit, if a bank should fail. Technology is having a major impact on the banking industry. For example, many routine bank services that once required a teller, such as making a withdrawal or deposit, are now available through ATMs that allow people to access their accounts 24 hours a day. Also, direct deposit allows companies and governments to electronically transfer payments into various accounts. Further, debit cards, which may also used as ATM cards, instantaneously deduct money from an account when the card is swiped across a machine at a store’s cash register. Electronic banking by phone or computer allows customers to pay bills and transfer money from one account to another. Through these channels, bank customers can also access information such as account balances and statement history. Some banks have begun offering online account aggregation, which makes available in one place detailed and up-to date information on a customer’s accounts held at various institutions. Advancements in technology have also led to improvements in the ways in which banks process information. Use of check imaging, which allows banks to store photographed checks on the computer, is one such example that has been implemented by some banks. Other types of technology have greatly impacted the lending side of banking. For example, the availability and growing use of credit scoring software allows loans to be approved in minutes, rather than days, making lending departments more efficient. Other fundamental changes are occurring in the industry as banks diversify their services to become more competitive. Many banks now offer their customers financial planning and asset management services, as well as brokerage and insurance services, often through a subsidiary or third party. Others are beginning to provide investment banking services that help companies and governments raise money through the issuance of stocks and bonds, also usually through a subsidiary. As banks respond to deregulation and as competition in this sector grows, the nature of the banking industry will continue to undergo significant change.

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Structure The Indian banking system can be classified into nationalized banks, private banks and specialized banking institutions. The industry is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is the foremost monitoring body in the Indian Financial sector. It is a centralized body that monitors discrepancies and shortcomings in the system. Industry estimates indicate that out of 274 commercial banks operating in the country, 223 banks are in the public sector and 51 are in the private sector. These private sector banks include 24 foreign banks that have begun their operations here. The specialized banking institutions that include cooperatives, rural banks, etc. form a part of the nationalized banks category.

Origin of the word The name bank derives from the Italian word banco "desk/bench", used during the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth. However, traces of banking activity can found even in ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome- that of the Imperial Mint. Scope The Banking sector is considered the most lucrative option in today’s job market. In the industry, a position in Treasury or Forex is considered right on top and this is followed by careers in Private Banking, Investment Banking and Retail Banking. One could work in a 9

variety of areas in banking industry including Recurring Deposit account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loan agent, loan manager, mortgage loan underwriter, loan processing officer, accountant, product marketing and sales executive, and customer service executive among others. In the Financial Services, some of the important jobs include that of a stockbroker who is essentially a person who buys and sells securities on behalf of individuals and institutions for some commission. While some brokers like to practice with individual clients others work for institutions. Brokers who work for institutional investors are often called securities traders. Many prefer to work as dealers, advisors and securities analysts. Security analysts are those who advise companies on floatation’s of shares as they are expected to have sound knowledge of capital markets. Investment analysts are the backbone of the financial services sector. They study the financial reports of companies, assess various statistical information, profitability projections, compare financial results, survey the industry as a whole and on the basis of the available information, and finally conclude to a decision. Equity Analysts do jobs similar to investment analysts and research the equity markets and make predictions.

10

Ba nki ng bu sin ess has

Indian Banking & Insurance Industry a

his tor y With of economic liberalization measures many private and foreign banking companies were ov allowed to operate in the country. Favorable economic climate and a variety of other er factors such as demand for wide range of financial products from various sections of 20 the society led to mutually beneficial growth to the banking sector and economic growth process. This was coincided by technology development in the banking 0 operations. Today most of the Indian cities have networked banking facility as well as ye Internet ars banking facility. A customer is empowered to operate his account from any part of .the country. UTI Bank, ICICI, HDFC Bank and Bank of Punjab are the main winners of Fr the race. om the tim es of the Ba nk of Be ng al( 18 06) the sec tor has be en

11

Th e

Scope of Banking & Insurance Sectors in India fin an cia Diversifying into investment banking, insurance, credit cards, depository services, l mortgage financing, securitization has increased revenues. As large number of players sec in various fields enters the market, competition would be intensified by mutual funds, tor Non Banking Finance Corporations (NBFCs), post offices, etc. from both domestic and in foreign players. All this would lead to increased sophistication and technology in the Ind sector. Corporate governance would come into the picture and other financial ia institutions would have to reach global standards. Also the limit for FDI in private has banks is increased to 74% and the limit for FII is 49%. There are many challenges be ahead for the banking sector such as technology, consumer satisfaction, corporate co governance, risk management, etc. and they are redefining their priorities, which are me now focused on cost reduction, product differentiation and customer centric services. str Some of the major players in this sector are HDFC, ICICI, HSBC, State Bank of India, on Punjab National Bank, IngVysya, ABNAmro Bank, Centurion Bank, City Bank, etc. ger in ter The msinsurance sector has opened up for private insurance companies with the enactment of of IRDA Act, 1999. A large number of companies are competing under both life and general ca Insurance. The FDI cap/equity in this sector is 26% and the proposals have to bepit cleared by Insurance Regulatory and Development Authority (IRDA) established to protect al the interest of holder of Insurance policy and act as a regulator and facilitator in theanindustry. Some of the major players in this sector are LIC, Max New York Life Insurance, Bajaj Allianz, ICICI Prudential, HDFC Standard Life, Metlife Insurance, d Birla the Sun Life Insurance, etc. Various types of policies and instruments are coming up in nu the market to attract more customers. Most of the population of India is not insured, hence mb there is a lot of scope in this sector and a number of companies are planning to enter er the sector. Every futuristic individual would want himself to get insured. of Capital cus markets have a long history of over 100 years in India. Bombay Stock Exchange came to into existence more than a hundred years ago to remove direct government me rs. .

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.

Major Players in the Industry Allahabad Bank Andhra Bank Axis Bank Ltd. Bank of Baroda Bank of India Canara Bank Central Bank of India HDFC Bank Ltd. ICICI Bank Ltd. Indian Bank IndusInd Bank Ltd. Industrial Development Bank of India Ltd. ING Vysya Bank Ltd Jammu & Kashmir Bank Ltd. Karnataka Bank Ltd. Karur Vysya Bank Ltd. 13

Kotak Mahindra Group Lakshmi Vilas Bank Ltd. Lord Krishna Bank Ltd North Kanara G.S.B. Co-operative Bank Oriental Bank of Commerce PricewaterhouseCoopers Pvt. Ltd Punjab & Sind Bank Punjab National Bank South Indian Bank Ltd. State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore Ltd. State Bank of Mysore State Bank of Patiala State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank Wallfort Financial Services Ltd. 14

Wells Fargo YES Bank Ltd.

Performance of Industry � 84 percent of the survey respondents described the performance of the banking Industry as “Very Good” in the fiscal 2004-05. � newly granted autonomy would certainly make the PSBs more competitive and Profitable, said 88 per cent respondents, though some more changes considered Desirable (refer survey) � 48 percent of overall respondents and 67 percent of private bank respondents Expressed the need to relax the prescribed limit of single ownership and cross holding cap in the Ownership and Governance guidelines for Private sector Banks. � Although 72 percent of public & private sector bank respondents expressed their satisfaction with the recently devised road map for the foreign banks, majority of foreign Bank respondents (75 percent) expressed complete dissatisfaction with this Roadmap. � 75 percent of the foreign bank respondents expressed that time frame prescribed to expand through Merger & Acquisitions should have been less and equal number voiced that the guidelines are not in line with international norms. � Consolidation in the banking industry followed by Technological up gradation was considered as key factors currently required to enhance the international Competitiveness of the Indian banks. � Free trade agreements (FTA) considered a positive step in the area of banking by almost all respondents. The available market size and the level of access provided to Survey on Status of Indian banking Industry – Progress & Agenda ahead 2 Indian banks in foreign countries should be the key factors in consideration, while entering into such agreements, as highlighted by 76 percent of banks � Rise in the interest rates imminent say 64 percent survey respondents. Majority expects increase by 0.5 percent. � 88 percent of Public and private sector banks considered HRD related issues as one of 15

the biggest challenge in the process of consolidation. � 83 percent respondent banks claim to have more than 85% level of technological advancements in their banks with remaining banks stating it to be around 65-85%. � All our respondents emphasized that customer retention is significantly important for the profitability of the banks. � More than 70 percent of banks felt the need of advanced security software’s and stricter security policies to safeguard and ensure the security of customer information. Some of the legal changes suggested are detailed in the survey. � 53 percent of respondent banks considered 6 months transition period to shift from MIFOR rupee benchmarks for interest rate derivatives to be inadequate � Majority of banks felt that their Risk management framework for implementation of BASEL II was well in place. � 53 percent of our survey respondents intend to increase their retail portfolio by more than 25% in the year 2005-06. � Rising Indebtedness followed by lack of Technological advancements were identified as biggest challenges that could affect the future growth of Retail banking. � 80 percent of survey respondents did not agree with the notion that housing loan is creating a bubble. � Substantial progress made by banks in cleaning up the NPAs from their balance sheets, was largely attributed to SARFAESI Act and increased provisioning on Doubtful debts by majority of survey respondents. � Absence of Secondary Market for the trading of security receipt issued by ARCs was identified as one of major problem in Indian Model of NPA management. � Separate NPA norms for the farm and the SME sector were recommended by large number of respondents. Survey on Status of Indian banking Industry – Progress & Agenda ahead 3 � 96 percent of all banks claim that the current growth of non-food credit is sustainable for about 3-5 years. � Detailed information on banks sectoral exposure of credit reveals that over two-thirds of the credit flow has been on account of retail, housing and other priority sector loans. Banks credit flow exposure to large Enterprises continues to remain buoyant with recent indications that credit to agriculture and Micro credit has also picked up. 16

� 71 percent of our survey respondents did not consider SMEs as an avenue of forced lending.

Company Profile

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History Vijaya Bank, a medium sized bank with presence across India was founded on 23rd October 1931 by the late Shri A.B.Shetty and other enterprising farmers in Mangalore, Karnataka in India.. The objective of the founders was essentially to promote banking habits, thrift and entrepreneurship among the farming community of Dakshina Kannada district in Karnataka State. The bank became a scheduled bank in 1958.Vijaya Bank steadily grew into a large All India bank, with nine smaller banks merging with it during the 1963-68. The credit for this merger as well as growth goes to late Shri M.Sunder Ram Shetty, who was then the Chief Executive of the bank. The bank was nationalised on 15 April 1980. Growth and Nationalisation Vijaya Bank grew steadily by merging nine smaller banks into it between 1963-68. Shri M.Sunder Ram Shetty, who was then the Chief Executive of the bank is largely credited with these mergers. The bank was nationalised on 15 April 1980. Branches The bank has built a network of 1065 branches,45 Extension Counters and 352 ATMs as at 03.01.2009, that span all 28 states and 4 union territories in the country. Thrust on Information Technology The Bank has chosen Finacle from Infosys as centralized banking solution. In line with the prevailing trends, the bank has been giving greater thrust towards technological upgradation of its operations. The bank has network of 1101 branches, 43 Extension Counters and 364 ATMs. All 1101 branches, 37 extension counters, 12 service branches are functioning on CBS platform, and at 703 centers, covering 100 % of Bank's business.

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Realising your constantly evolving and diverse needs, the bank has diversified too. Entering several new areas such as credit card, merchant banking, hire purchase and leasing, and electronic remittance services. 1031 - Branches /offices are under RTGS and 1030 - Branches / offices are under NEFT Vijaya Bank is one among the few banks in the country to take up principal membership of VISA International and MasterCard International. The driving force behind Vijaya Bank's every initiative has been its 12107 strong dedicated workforce.

Area of corporation After obtaining the certificate of incorporation and certificate of commencement and getting the draft of the memorandum of association and articles of association approved, Vijaya bank Ltd., started functioning as per the provision of Indian companies act in a small bungalow with a tiled roof (Mangalore tiles) on Kadri road in Mangalore. Background Type

:

Public BSE: 532401

Founded

:

1931 at Mangalore, India.

Headquarters :

Bangalore, India

Key people

:

Albert Tauro, Chairman & Managing Director

Industry

:

Financial Commercial banks

Employees

:

12,107

Website

:

http://www.vijayabank.com/

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Organisational set up of bank as per 1931

Organisational set up of the bank as per 2009

Products & Services

Deposit Schemes 1. Savings Bank 2. V Platinum Savings Bank Account 3. Vijaya Saral Savings 4. Current Account 5. VStar Savings Scheme 6. Term Deposit

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Loans & Advances 1. Retail Lending Schemes 2. Loans Against Securities 3. Non Fund Based Facilities 4. Advances to Agriculture, SSIs and Others 5. Government Sponsored Schemes 6. Special Schemes for Women

NRI Services 1. Deposits 2. Loans Remittances

3. FOREX Branches 4. FCNR(B) Branches 5. Helpline for NRIs

Remittance Collection and Facilities 1. FOREX Remittances 2. Inland Remittances 3. Electronic Remittance Services 4. Inward / Outward Collection Instruments Credit Cards 1. Domestic Cards 2. Global cards 3. Debit cards Forex

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1. FOREX market Information 2. Card Rates 3. Treasury Other Services 1. Merchant Banking 2. Vijaya Rakshak

3. V-Arogya Bima Policy 4. Credit Cards 5. Mutual Funds 6. Leasing 7. Hiring 8. Purchases

Competitors of Vijaya bank Canara Bank. Corporation Bank. HDFC Bank Ltd. ICICI Bank Ltd. Indian Bank. IndusInd Bank Ltd. Karnataka Bank. ING Vysya Bank Ltd. 22

Syndicate Bank. State Bank of India. Janatha corporative Bank.

Financial analysis of Vijaya bank Ratio Analysis As on

31-

31-Mar-

Mar-09

08

31-Mar-07

88.23

87.97

91.13

11.77

12.04

8.87

Profitability Interest Income/Total Income (%) Non Interest Income/Total Income (%)

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Reported Net Profit/Total Income (%)

4.42

8.17

10.7

18.95

18.78

34.6

3.17

2.62

4.42

8.34

14.69

17.47

0.42

0.64

0.78

65.04

66.08

64.42

31.88

34.65

31.96

26.91

26.67

22.88

34.7

37.74

22.12

34.48

74.65

30.78

47.55

3.26

3.51

--

9.03

161.15

Net Interest Income/Total Income (%) Net Interest Margin (%) Return Related ROE (%) (PAT/share cap+res)*100 ROA (%)

Leverage & Capital Measures Customer loans/deposits (%) Investments/Deposits (%) Total Liabilities/Networth

Growth (%) Growth in Interest Income Growth in Interest Expenses Growth in Employee cost Growth in PAT

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Growth in Deposits Growth in Borrowings

13.73

27.52

35.71

--

868.44

--

48.1

43.2

42.7

6.05

8.33

7.64

--

--

--

Per Share Book Value Per Share (Rs) Earnings Per Share (Rs)(PAT/no of shares) Dividend Per Share (Rs)(Dividends paid/ no of equity shares)

Result of Financial analysis PROFITABLITY- Though being a season of recession this year the company has ended up with a net profit ratio of 4.2 which is nearly half to the last year’s ratio. It could be considered fair till than but if see the balance sheet there has been a considerable increase in the fixed assets to 10010.79 from 1861.77 which means that there should be increase in the number of buildings and branches that should lead to more number of branches and more number of accounts but besides this there are no signs of improvements in profit so the profitability of Vijaya bank could be rated FAIR.

RETURNS-Share capital and reserves have increased in this year considerably this shows a good sign of market value and after considering environmental conditions we can also see that the profit earned after tax this year was lesser than of the previous year so the returns can be rated as GOOD. LEAVERAGE- The leverage ratio can be considered doing well as much down fall is not observed and so it can be considered or rated VERY GOOD. 25

The bank’s market value is seem to be increasing and though the returns are less but the expenses have also fallen to a large extent so Vijaya bank can be rated overall as VERY GOOD

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Data analysis and findings

Analysis of the survey:

The survey was done with an objective to find the marketing

and promotional activity of some of the randomly selected branches in D.K district of Karnataka. Vijaya bank like any other national bank has various services like Vijaya tax saving scheme, v-Rakshak, v-gen etc which is focusing on each and every age group and social class of the society. Vijaya bank as was started by a group of agriculturists, as a bank of agriculturists. It is still focusing on the priority sector. The survey was guided throughout by Mr.K.Ganesh Acharya a bank manager in Vijaya bank, who brought to my (surveyors) notice that bank, is following a social concerned practice in the rural banking area. The questionnaire prepared for the survey mainly was with a primary objective of finding the important banking activity and business practices in the bank as a whole. Efforts were made to understand the relationship between the main bank and its branches also the bank 27

and customers relationship, where Mr.Shetty Durgaprasad.D (surveyor) had visited some of the customers personally and took their valuable inputs. The questionnaire prepared was only given to the bank managers and the surveyor had even referred the banks platinum jubilee book which was published in 2006 to understand the banks history and progress till date. The survey also was done on the basis of comparison of service between Vijaya bank and State bank of India both Kinnigoli branch to find out the customer attending service which was done by Mr.Shetty Durgaprasad.D (surveyor) who personally visited both the bank and saw two extremely different kind of service.

Findings from the survey: The questionnaire prepared for the survey mainly was with a primary objective of finding the important banking activity and business practices in the bank as a whole. Efforts were made to understand the relationship between the main bank and its branches also the bank and customers relationship, where Mr.Shetty Durgaprasad.D (surveyor) had visited some of the customers personally and took their valuable inputs. It was very surprising to find that the bank does not believes in video advertisements and opts moreover for pamphlets and billboards though the pamphlets are designed in a very catchy manner in such a competitive era it is necessary to have a video advertisements. The promotional activity is versatile where the bank is much focusing on service design and corporate social responsibility. The bank also focuses on the customer relationship where each and every customer is been personally attended and also sometimes recognised. Throughout the analysis it was very clear that the bank was much focusing on retaining the customers and making more customers by its warm and caring customer attending service.

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The design of pamphlets was very much clear, concise, and complete where the efforts to give maximum knowledge regarding a particular service where made. Even it was found that many of the people were migrating from other banks to Vijaya bank especially for the competitive benefits given in some of the schemes like vcc, Jeevan Nidhi deposit scheme.When asked with the managers they said that serving the people is main objective. The bank has also taken step to educate and train the school children and the rural people regarding banking through its extension. The managers put forth their views that proper and complete training should be given to the senior work force regarding computerized banking.It was even clear that the employee satisfaction and Job satisfaction was present and the bank was making its employee as a potetional advertisers of their organisation by their total service motive.

The Bank is practicing its tag line very well which is “A friend you can Bank upon” Surveyors input: The major findings were that the bank is lagging behind in video advertisements and it has a tough competition from the corporation and syndicate bank. The bank is much more customer service oriented and the workforce present is much impressive. The product profile of the bank is also impressive where it is covering all the sections and places in the society. It is also the second bank in India to start with the mobile banking system, which has a good customer response. The NPA ratio was fair in all the branches as consulted in the research and its increasing number of branches across India was showing the progress of the bank. As a management student and also the customer of the bank the main suggestion would be that the bank should go for an effective video advertisement as people would come to know more about the bank. The bank should also concentrate in some of institutional tie ups to gear the business. The workforce present is very much effective but optimum utilization was lacking cause training in the use of computers was very less among the senior level officers. The promotional activity has to be more stressed upon cause of the tough competition from other banks. The major problem in this particular bank is that some of the very 29

impressive and potetional offers and schemes like the V.C.C, V-gen and tax saving scheme is being unnoticed in the market even the banks prime customer lack knowledge about such services present in the bank so the bank should much concentrate in making the public realize the efficiency and potetional of such products through various promotional activity.

Conclusion

As a leading bank in the banking industry Vijaya bank should not neglect the promotional activities at all in its activity towards making business as promotional activity is necessary in any business so that the society and customer would know about the benefits of the service and that are influenced to buy. Financial institutions should also pay attention to political environment and labour conditions of the area where if any potetional project is to be located. Strikes, Lockouts, Industrial Peace and Communal Harmony in the area play a decisive role in examining success or failure of the project. Market and environmental analysis is much more of importance before launching any of the service so Vijaya bank should also foresee the exact market segment for each of its product cause many of the schemes are only suitable to a particular location and class of people.

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Also we should consider the slowdown in the economy due to the recession as banks suffered the most during this time but Vijaya bank was able to maintain the business throughout. The bank is also having a good workforce and also is recruiting fresh employees which mean it is creating opportunities for growth in the income per person in country. Vijaya bank can also be look upon as a bank which is functioning as a social business entity cause of its interest taken in educating people and students in banking with the help of its extension.

Annexure

31

Income Statement 31-Mar-09(12) Profit/Loss A/C

Rs. mn

31-Mar-08(12)

%OI

Rs. mn

31-Mar-07(12)

%OI

Rs. mn

%OI

Interest Income Earned

52378.25

88.23

39834.15

90.11

28231.12

91.13

1288.03

2.17

838.19

1.9

664.66

2.15

Lease Income Dividend

0

0

0

0

0

0

Income Miscellaneou

0

0

0

0

0

0

5700.07

9.6

3533.35

7.99

2083.23

6.72

6988.1

11.77

4371.54

9.89

2747.89

8.87

59366.36

100

44205.68

100

30979.01

100

Commission, Exchange and Brokerage Income

s Income Other Income Total Income (OI)

32

Interest Expenditure Employee

41130.24

69.28

30584.18

69.19

17511.62

56.53

Expenditure

5974.69

10.06

4049.16

9.16

3921.39

12.66

369.81

0.62

307.99

0.7

401.31

1.3

2902.49

4.89

2655.59

6.01

2184.48

7.05

3574.12

6.02

3832.88

8.67

3482.68

11.24

53951.36

90.88

41429.8

93.72

27501.47

88.77

5415 2790.2

9.12 4.7

2775.88 -836.9

6.28 -1.89

3477.54 164.1

11.23 0.53

Items Net Net Profit Adjusted Net

0 2624.8

0 4.42

0 3612.78

0 8.17

0 3313.45

0 10.7

Profit Dividend -

2624.8

4.42

3612.78

8.17

3313.45

10.7

Preference Dividend -

0.96

0

0

0

0

0

507.19

0.85

1014.39

2.29

1001.51

3.23

Depreciation Other Operating Expenditure

Provision and Contingencies Total Expenditure Pretax Income Tax Extra Ordinary and Prior Period

Equity

33

Balance Sheet 31-Mar-09 Equity

%BT

31-Mar-08

%BT

31-Mar-07

%BT

Capital Preference

2000

0.32

2000

0.36

4335.18

1.02

Capital Share

5000

0.8

0

0

0

0

Capital Reserves

7000

1.13

2000

0.36

4335.18

1.02

22157.77 545354.25 6192.42

3.57 87.75 1

20255.32 479520.13 19188.72

3.62 85.7 3.43

14631.59 376044.99 1981.4

3.45 88.78 0.47

40786.41

6.56

38543.74

6.89

26581.76

6.28

(BT) Fixed

621490.84

98.14

559507.92

100.49

423574.92

100

Assets Investments Advances Cash &

10010.79 173877.03 354681.11

1.58 27.46 56.01

0.46 166173.2 316892.16

0 29.85 56.92

1861.77 120184.05 242235.52

0.44 28.37 57.19

81079.95

12.8

60973.63

10.95

50701.23

11.97

13613.62 633262.5

2.15 100

12725.89 556765.34

2.29 100

8592.35 423574.92

2.03 100

and Surplus Deposits Borrowings Other Provisions and Liabilities Capital and Liabilities

Money at Call Other Current Assets Properties and Assets 34

(BT)

Questionnaire 1. Which sector does your branch gives importance? a. Priority sector

b. non-priority sector.

2 what kind of loan is more availed by the public from the bank? 3. What kind of promotional activity is undertaken by the branch and the bank? 4. What kind of delegation of authority is given to you as branch manager? 5. Did the branch go for any tie ups till date? Specify? 6. What kind of workforce is present in the branch? 7. Is there any promotional activity taken by the branch recently? 8. How often do people migrate from other bank to your banking service? 9. What kind of competition is the branch facing? 10. Which scheme of the bank is doing expressively well? Why? 11. How often the regional or the main branch official would be visiting the branch?

35