A COMPARATIVE ANALYSIS OF MARKETING OF BANKING SERVICES IN INDIA WITH SPECIAL REFERENCE TO PRIVATE vs PUBLIC SECTOR BANKS

Abstract

The world of banking has assumed a new dimension at dawn of the 21st century newlinewith the advent of tech banking, thereby lending the industry a stamp of newlineuniversality. In general, banking may be classified as retail and corporate banking. newlineRetail banking, which is designed to meet the requirement of individual customers newlineand encourage their savings, includes payment of utility bills, consumer loans, newlinecredit cards, checking account and the like. Corporate banking, on the other hand, newlinecaters to the need of corporate customers like bills discounting, opening letters of newlinecredit, managing cash, etc. Metamorphic changes took place in the Indian financial newlinesystem during the eighties and nineties consequent upon deregulation and newlineliberalization of economic policies of the government. India began shaping up its newlineeconomy and earmarked ambitious plan for economic growth. Consequently, a sea newlinechange in money and capital markets took place. Application of marketing concept newlinein the banking sector was introduced to enhance the customer satisfaction the newlinepolicy of privatization of banking services aims at encouraging the competition in newlinebanking sector and introduction of financial services. Consequently, services such newlineas Demat, Internet banking, Portfolio Management, Venture capital, etc, came into newlineexistence to cater to the needs of public. An important agenda for every banker newlinetoday is greater operational efficiency and customer satisfaction. newlineThe introduction to the marketing concept to banking sectors can be traced back to newlineAmerican Banking Association Conference of 1958. Banks marketing can be newlinedefined as the part of management activity, which seems to direct the flow of newlinebanking services profitability to the customers. The marketing concept basically newlinerequires that there should be thorough understanding of customer need and to learn newlineabout market it operates in. Further the market is segmented so as to understand newlinethe requirement of the customer at a profit to the banks. The banking industry, one newlineof the most important instruments of the national d