SBI to bring in green-channel banking

The State Bank of India is set to introduce green-channel banking to promote paperless work and reduce footfall of customers in the already over-burdened ATMs and branches. p>

SBI general manager for network-I D Mozumdar said here on Saturday that apart from regular counters, a new counter was being opened in which customers could swipe their ATM cards and enter the pin code to receive cash from the person manning the counter. “In this way, there will be no requirement for paperwork and the process of money withdrawal will be fast,” he said.

Under the financial inclusion scheme of the Reserve Bank of India, SBI has been asked to take up responsibilities in 43 of the 156 “under-banked” blocks of the state, besides extending banking facilities to 408 villages having a population of over 2,000 people. Mozumdar said SBI would connect 200 villages by March this year through different banking techniques. “We do not require brick and mortar branches these days to extend banking facilities because technology has made the work easier and SBI is fortunate to have all the modern banking technology,” he said.

All 200 villages where SBI is planning to launch services by March will be on technology platform that includes micro-ATM or mobile-based banking in which the customers having a mobile phone can access his or her account through the cell phone and bio-metric smart cards by which a user is identified on a hand-held machine through finger prints. Business correspondents appointed by bank will also disburse cash along with printed receipts and through kiosk-mode in which the bank provides a laptop with face-reading and voice-recognition software to enable transactions.

A Study on Marketing Strategy of Banking Industry in India-Allahabad Bank

The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded in April 24th of the year 1865 at the confluence city of Allahabad by a group of Europeans. At that occasion Organized Industry, Trade and Banking started taking shape in India. Thus, the History of the Bank spread over three Centuries – namely Nineteenth, Twentieth and Twenty-First. As a leading public sector commercial banks in India, Allahabad Bank offering banking products and services to corporate and commercial customers and retail customers. The Bank particularly focuses on the retail banking while serving all sectors of the Indian economy. Bank’s operations for corporate and commercial customers cater to large corporate customers as well as to small and middle market businesses and Government entities. Corporate and commercial products include Term Loans, Bill Discounting, Export Credit and other business credit and financing products. Also the bank offers a wide range of retail products including Home Loans, Personal Loans and Automobile Loans as well as Debit Cards. In addition, specialised products and services to the agricultural sector also one of entity of the bank. All the above products and services of the bank offered through extensive branch network, extension counters, ATMs, phone banking and the Internet. This article will be helpful in writing Project Report on Marketing.In Twentieth Century, The Bank became a part of P & O Banking Corporation’s group with a bid price of Rs.436 per share in 1920. The Head Office of the Bank was shifted to Calcutta on business considerations during the year of 1923. The Bank crossed its century year in 1965. In July 19th of the year 1969, Allahabad Bank was nationalized (with 151Branches – Rs.119 crores of Deposits and Rs.82 crores of Advances) along with 13 other banks. United Industrial Bank Ltd was merged with the bank in October of the year1989. The Bank made a foray into merchant banking activity in 1984 and subsequently instituted AllBank Finance Ltd as a wholly owned subsidiary for Merchant Banking in the year of 1991. The Official Language Implementation Committee of Calcutta awarded the Rajbhasha Shield to the Bank as Second Prize for its best performance for the year 1991. During the year 1995, The Bank had entered into an MOU with the Small Industries Development Bank of India (SIDBI) for financing small-scale industrial units. In 1996, The Bank had set up Information Technology Centre to provide in-depth computer training to Officers at Calcutta and Lucknow. Consequent to the SEBI Rules and Regulation the company surrendered its merchant banking registration in 1998 and got it registered as a Non Banking Financial Company (NBFC) with Reserve Bank of India (RBI). In the same year of 1998, the bank had received permission from the RBI for gold trading. Allahabad Bank has entered into an arrangement, informally though, with IDBI and ICICI in regard to funding of infrastructure projects. During the year 1999, Allahabad Bank has launched two new schemes to increase the pace of credit off take and in the same period TATA Consultancy Services (TCS) has entered into a contract with Bank for implementing the Integrated Standard Banking System (ISBS), a branch mechanisation package at 60 branches. The Bank bagged three major core sector clients, namely the National Thermal Power Corporation (NTPC), Power Grid Corporation and Indian Railway Finance Corporation Ltd (IRFC). This report shows that Allahabad Bank has performed well which is reflected in its Ratio Analysis Reports In Twenty-First Century, Allahabad Bank has launched its new personal loan scheme for pensioners in the year of 2001. As at October of the year 2002, the bank came out with Initial Public Offer (IPO) of 10 crores share of face value Rs.10 each, reducing Government shareholding to 71.16% and in the same year 2002, Allahabad has tied up with National Institute of Banking Management, Crisil and Earnst & Young for development of HRM, risk Management and general business strategy. The Bank has seized the commercial assets of the Guarantors of Ramolene Fabrics (P) Ltd in 2003 at Mumbai and signed a Memorandum of Understanding (MoU) with Corporation Bank for mutual sharing of their ATM Network. The Bank has entered into an MOU in the year of 2004 with the Export Credit Guarantee Corporation of India (ECGC) for distribution of their products to the exporters. UTI Mutual Fund and Allahabad Bank on April 5, 2004 announced a strategic tie-up for distribution of UTI MF schemes. During April of the year 2005, the bank made Follow on Public Offer (FPO) of 10 crores equity shares of face value Rs.10 each with a premium of Rs.72, reducing Government shareholding to 55.23%. The Bank has signed MoU with Mahindra Gujarat Tractor Ltd in the identical year 2005 for financing Hindustan brand tractor under special finance scheme. Allahabad Bank transcended beyond the National Boundary, Allahabad bank had opened a representative office at Shenzen, China in June 2006. In October of the same year 2006, the bank rolled out its first branch under Core Banking Services (CBS). During February of the year 2007, The Bank opened its first overseas branch at Hong Kong. During the calendar year of 2007, 100 more branches opened throughout the country, the total number of branches were stirred from 2042 to 2142 of which rural are 983 (46%), semi-urban 402 (19%), urban 450 (21%) and metropolitan 307 (14%). There is no doubt that reading Banking Industry Reports is essential for knowing the history of a bank. Allahabad Bank has opened its 2154th branch in at Pudukkottai, Tamil Nadu during March of the year 2008. The Bank has 211 ATM’s and Card members can now have access at over 16500 ATM’s all across the country under National Financial Switch. One of the premier nationalised banks of the country, Allahabad Bank has commenced the process of implementing the Agricultural Debt Waiver and Debt Relief Scheme-2008 in June of the year 2008. The Bank has improved its performance and established its visibility and strong presence in the market. The Bank is steadily moving at a faster pace to consolidate its position in the coming days introducing extensive computerization to ensure the state-of-the-art service comfort for its customers. The Bank has already in hand 116 authorizations for opening of new branches. Bank’s plan is to expand in areas where the Bank’s presence is not very much visible now and where business potentiality is good.

What Does Mobile Banking Mean For Retail Customers In India

Mobile banking is a new and exciting way to bank for the customers in India. It not only has the multiple banking operations but also has quite a few support functions. Yet, it hasnt reached across India, as anticipated -RBI suggested. However, the growth in mobile banking in India is extremely encouraging. Here are few facts that will surprise you.

There is more than 7% month-on-month growth in the number of mobile transactions in India. This is based on the monthly transactions by August 2013.
By September 2013, the users have exchanged around Rs. 1565 Cr though the mobile transactions.

Though, the year-on-year growth is phenomenal, it cannot be considered well received when only a small fraction of the Indian banking customers are using it. When you realize the number of functionalities available, it is surprising that more numbers of people are not using it. The banking and allied functionalists available via mobile banking application are:
Locate the nearest branch of the bank via Google maps
Order a new cheque book
Check the status of new cheque book
Transfer funds
Check the balance available in the account
Take the mini-statement of the account
Pay utilities bills, credit card bills, insurance premiums, etc.
Make donations
Top up mobile recharge
The demat account services such as purchasing mutual funds, cancelling transactions, check NAVs, etc.

Arguably, all these services are not available in all the mobile banking apps released by all the banks. There is no sufficient response to the already-launched apps either. The research indicates that the primary reasons for this low-responsive state are:
Compatibility: The existing apps are not compatible with the various types of smartphones available in the market. Though, the smartphone market in India is expanding at the extraordinary rates, it is challenging to identify and release as many versions of the banking applications in the respective app stores. So, all interested customers dont get the app for mobile banking.
Awareness: All the bank customers are not aware of these apps. In spite of the promotions, this information hasnt penetrated down to all the social strata.

With few changes, the growth of smartphone banking in India can go in the high gear. It will become a routine concept. However, there are considerable infrastructure challenges. We still need to overcome them. With the right marketing and information strategy in place, interest and participation in the phone banking operations will reach sky high.

The Scope Of Banking Jobs in India

In India, Banking sector has always been viewed as the safest sector from the viewpoint of stability and pay. And why not! With more than 29 foreign banks, 28 nationalized banks and approximately 24 private banks, the scope of Banking Jobs is significantly on the rise in India. Today, there are more than 53,000 branches of Banks in India providing countless job opportunities to graduates and post-graduates.

What’s So Interesting About Banking Jobs In India?
Post liberalization, the class banking transformed into mass banking in India. It gave momentum to the expansion of banks in India. This attracted not only those with their relatives employed in banks but scores of others. What lured people the most and still continues to attract many fresh graduates and post graduates is the less stressful working hours in addition to the amazing pay package. Like any other sector, there are various divisions in banking sector as well. These divisions are generally categorized on two levels – officer level and clerical level. While the officer level work is regarding the banking dealings with customers, managing their portfolios and other similar tasks; the clerical level work is all about managing the front office responsibilities, checking the notes and coins, etc. Talking about the pay scale, you can start off your career in any reputed bank with a pay package anywhere between INR 15,000 and INR 30,000 per month.

The Banks Where You Can Apply To Work With:
Institute of Banking Personnel Selection (IBPS) is an autonomous body that is authorized by Indian Banks’ Association (IBA). It has received authorization from 19 Public Sector Banks and conducts the Common Written Examination (CWE) for the posts of Probationary Officer (PO) or Management Trainee. The CWE is organized twice a year by the IBPS for the afore-mentioned posts in public sector banks; namely:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Overseas Bank
Indian Bank
Oriental Bank of Commerce
Punjab National Bank
Punjab & Sind Bank
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank

The criteria to apply for the post of PO require you to have completed the graduation with good marks from a well-recognized university. Also, the graduate should be aged between 21 to 30 years.

The Challenges of Banking Outsourcing

Banking has been a very traditional and conservative sector in any country. For ages, generations after generations, have been loyal to a particular bank that their families have been associated with. Whether it is the Royal Bank of Scotland and Lloyds TSB in the UK or American Express and Capital One in the US, people stay loyal to their banking partners.

The banking industry in the west took a huge risk in the last decade by using countries like India, China and the Philippines to outsource their banking and financial services. For banks, it was a step in the right direction to reduce the number of customers walking into their branches, the number of calls taken by banking executives at the branch and reduce the work load on their existing call centres.

They wanted to reduce costs of employing more people to cater to their ever increasing base of customers and provide better services to their customers besides gaining a competitive edge. For customers who have been used to traditional methods of banking such as visiting their nearest branch, were exposed to new and state of the art technologies. IT and IT enabled banking services were the new age success mantra for most banks in Europe and the Americas.

The focus of banks that outsourced parts of their business to other countries was to reduce costs and increase profits. Though their approach was cautious, there were loop holes in their strategy. AMEX was one of the first banks to set shop in India in the late 90s. Theirs was a captive centre. However over the years, more and more BPOs have shown their capability in handling banking and financial services with greater efficiency and effectiveness.

For customers of these banks, the challenge was conquering their fears of a stranger in a distant country having access to their account information and the mistrust in their ability to provide solutions. Besides, there were language and accent issues.

Some customers generally called their banks and surpassed the IVR to speak to an agent as they were not very comfortable dealing with a machine and others demanded speaking to their branch in their own country. Such issues lead to delays in service. This led to dissatisfaction amongst customers and forced many to choose banks that hadnt outsourced their work and catered to their needs from within the country.

Data security was also one the major concerns for banks. More than customers, banks have found themselves living on the edge with account details made accessible to BPOs in other countries. With data theft being a reality in countries like India, China and Japan, it was a proven fact that banking outsourcing wasnt foolproof.

For banks it may result in large law suits and a decrease in their customer base. Banks also had their reputation at stake. The third party vendors may follow practices that may be inconsistent with the policies and practices of the bank. Besides the political, social, legal and physical climate of the outsourcing country may impact banking services.