State Bank of Patiala Analysis

verbalize marge of Patiala AnalysisState till of Patiala is a public sector blaspheme in India with its headquarter at Patiala, a city in the responsibility of Punjab. The bank is an associate of the State Bank sort out and offers core banking solutions to its customers.State Bank of Patiala (SBP) was established in 1917 by the king of the then princely state of Patiala. It was then c every last(predicate)ed Patiala State Bank. After independence in 1947, the bank became a subsidiary of the state organization of Punjab. In 1960, it became an associate bank of the State Bank Group. With the nationalization of the State Bank Group in 1969, SBOP became a public sector bank.The State Bank of Patiala has identified specialized segments and designed varied products to couple the needs of such segments. The segments be for the purposes are as followPersonal bankingAgriculture rural bankingNRI bankingSME unified bankingGovernment bankingInternet bankingMobile bankingThe bank has now added a golden chapter to its history by fully networking all its branches on Core Banking Solutions on 08.08.2005 and become the first fully networked Public Sector Bank in the country.Bank distribute throughAs far as the distribution transfer of products and work of the bank is concerned, I have come to know that state bank of Patiala has mostly mediate carry of distribution of its products and services but right away comports also to some extent. The bank is having various seize ups with m any companies for the distribution of its products. If the loan section is taken bank maximum use its substantiative personal credit line for the distribution of the products which are as follow-Scheme for Financing of Commercial Vehicles under Tie-up with-Ashok Leyland limitEicher Motors LimitedForce Motors LimitedTata Motors LimitedMaruti udhyog ltd.Mahindra motorsScheme for finance of Motor Cycles and Scooters under Tie-up with- chock Honda Motors LimitedScheme for extending facilities to Franchisee outlets in the form of Bank Guarantee/Term Loan.Monte Carlo Cotton CountyBank is also under the Tata nano special financing scheme with the Tata motors. Moreover the bank is in the MOU for loan to the students of the Frankfinn tune Services Ltd. which will ensure 100 per cent financing of the tuition fee of its students for the one-year courses in aviation crew and hospitality and travel persistence. Moreover for the NRI banking bank is having again in occupy distribution channel and having various tie ups withThomas cook money transferWall Street money mass meetingWestern union money transferSBOP has also various tie ups with foreign banks for the transfer of funds, bills etc. The SBOP also provides the various services like insurance, mutual funds etc. and for its distribution the bank is having SBI- life, oriental person insurance ltd, SBI- mutual funds SBI- card etc. As far as direct take are concerned bank used the internet banking and mobile bank ing for its distribution of the products.Why SBOP use indirect channel soNow the next thing arises that why SBOP mostly use the indirect channel. As it is known that there are mainly two channels of marketing which areDirect agate lineA direct distribution channel is where a company sells their products direct to consumers.Indirect ChannelThe indirect channel is used by companies who do not sell their goods directly to consumers.But the direct channel has one major drawback i.e. characteristically present in conventional retailing which means it doesnt allow any options. Moreover, although direct selling saves channel costs, commission paid to as high as 30-35% of retail price. withal recruiting training motivating and retaining good sale people is difficult and expensive task. For direct selling face-to-face interaction must be capable of producing a significant value addition to the consumer, compared to be buying from retail shop. Finally channel becomes fail when circumstance s changes.So in order to overcome from all these problems bank mostly uses the indirect channels of distribution. Moreover Suppliers and manufacturers typically use indirect channels because they outlive early in the supply chain. Companies choose the indirect channel best suited for their product to accommodate the best market share it also allows them to focus on producing their goods.So in nutshell it would be suggested to bank that the bank should try to use direct channels in more terms because while direct channels were not popular many years ago, the Internet has greatly increased the use of direct channels. Additionally, companies needing to cut costs may use direct channels to avoid middlemen markups on their products. Depending on the industry and product, direct distribution channels have become more prevalent due to the Internet. Like in present scenario everyone use the internet for any sort of information so now the days banks are concentrating more upon direct chann els rather to distribute indirectly. SBOP is also doing the same.