Canara Bank

A Presentation on MARKETING OF SME PRODUCTS IN CANARA BANK

By: Ramesh

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

1Canara Bank

1,96,000cr

2Punjab National Bank

1,94,000cr

3Bank of India

1,59,000cr

4Bank of Baroda

1,53,000cr

5Union Bank of India

1,27,000cr

6Central 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

to

to

Rs.2cr

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

THANK YOU 21