A Presentation on MARKETING OF SME PRODUCTS IN CANARA BANK
By: S.AMITH
Flow of presentation:
Company Profile Products and services Introduction to SME Bank’s SME products Survey Suggestions 2
Birth of Canara Bank SRI AMMEMBAL SUBBARAO PAI BORN ON 19-11-1852 FOUNDED THE CANARA HINDU PERMANENT FUND ON 01-07-1906 LATER RECHRISTENED AS
CANARA BANK LIMITED IN 1910
3
Corporate Vision TO EMERGE AS A WORLD CLASS BANK WITH BEST PRACTICES IN THE REALMS OF ASSET PORTFOLIO, CUSTOMER ORIENTATION, PRODUCT INNOVATION, PROFITABILITY AND ENHANCED VALUE FOR STAKE HOLDERS 4
Corporate Mission
AUGMENTING LOW COST DEPOSITS
THRUST ON RETAIL LENDING
TONING UP ASSET QUALITY
ACCENT ON COST CONTROL
PRODUCT INNOVATION AND MARKETING
CUSTOMER CENTRIC FOCUS
LEVERAGING IT FOR COMPREHENSIVE MIS
MAXIMISING STAKE HOLDERS’ VALUE 5
Growth of Canara Bank
The First Balance Sheet:
CAPITAL
- Rs.50,000
DEPOSITS
- Rs.42,000
ADVANCES
- Rs.84,000
VOLUME
- Rs.1,28,000
6
Volume of Business for the year 2005-2006 Rank
Bank
Volume
1 Canara Bank
1,96,000cr
2 Punjab National Bank
1,94,000cr
3 Bank of India
1,59,000cr
4 Bank of Baroda
1,53,000cr
5 Union Bank of India
1,27,000cr
6 Central Bank of India
1,03,000cr [Source: www.rbi.org.in]
7
Products and Services
Personal banking Commercial Banking NRI Priority Sector Loans to SME International Services 8
Introduction to SME
(SME-Small and Medium Enterprise)
Definition:
Global perspective: 1to49 Employees – Small Enterprise 50
to
250 Employees- Medium Enterprise 9
Definition …
Indian perspective Manufacturing Sector Service Sector (Original Inv in Plant & (original Cost of equ Mach.) used for service) Micro Enterprise
Up
Small Enterprise
Rs.25lk
Medium Enterprise
Rs.5cr
to
Rs.25 lk to
to
Rs.5cr
10cr
Up
to
Rs.10 lk
Rs.10lk Rs.2cr Rs.2cr
to
to
Rs.5cr 10
Why SME financing….???
SSI financing is a constituent of priority sector credit.
More profitable
Less concentration of risk
Provides more job opportunities 11
Canara Bank’s SME products:
Products catering to Term Loan requirements
Products catering to Working Capital requirements
Non-fund based services 12
Bank’s Initiatives to promote SME products….
Exclusive Marketing set-up for SME Emphasis on new accounts SMS campaign Ads on Rediff and Money Control Seminars, workshops Gold card 13
Survey:
3 Specialized SME branches Feedback on the following parameters Customers: Adequate Finance Speed Service Product Awareness Branch Managers: Constraints and Approach towards lending. 14
Survey findings
Adequate Finance
76% - Bank finance adequate
New customers face difficulty - Lack of understanding of business environment by managers - Not keen to finance new ventures - Lack of powers at branch level
95% - Helped in expansion 15
Survey findings
Speed & Service
75% - Reasonably happy with Day-to-day transactions
90% - Not satisfied with the processing speed
Good service at specialized branches except BSB 16
Survey findings
Product & Awareness:
Rate of Interest – competitive Priority – Timely credit & Better Service Ready to pay upto 1% extra ROI Awareness mainly through Branch officials (87%)
17
Survey findings
Branch Manager’s views:
Constraints for better service: -Lack of powers -Lack of initiatives by employees -Technology -Formalities -High expectations
18
Suggestions:
Special training modules for managers on current Economic scenario
Extend Internet Banking to more branches and enable more transactions at ATMs
Increase Manpower (skilled)
Implement single window transaction 19
Suggestions
contd…
youngsters at counters
Recruit more Marketing Managers
Lend adequate support to Marketing Managers
Information from new customers
20
CONCLUSION
21
THANK YOU 22