Indian banks marketing strategies for individual loan approvals

The paper aims at to study the market segments and target market strategies for Individual loans adopted by the Public Sector and Private Sector banks in India. The study has been conducted in banks operating in the states of Punjab, Haryana and Union Territory of Chandigarh. Total 10 leading banks considered for the purpose of study out of which 5 are from public sector and 5 from private sector. Out of total sample of 500 bank officials, 250 comprised from each sector bank. The data was collected from respondents who are presently handling banking services through structured questionnaire. Weighted Average method is used to determine the relative significance of one variable over the others as perceived by the respondents. The findings of study reveal that maximum disbursement of Home Loan, Vehicle Loan, Education Loan, Agricultural Loan, Entrepreneurial Loan and Personal Loan is made to Other Individuals followed by Female Individuals. For Home Loan, Senior Citizens are ranked third, High Networth Individuals are ranked fourth and minimum disbursement is made to NRIs. For Agricultural Loans, NRIs are ranked third, High Networth Individuals are ranked fourth and minimum disbursement is made to Senior Citizens. For Entrepreneurial Loan, High Networth Individuals are ranked third, NRIs are ranked fourth and minimum disbursement is made to Senior Citizens. For Education Loan, both these sectors rank Other Individuals as first, Female Individuals as second. At third rank, public sector banks placed NRIs and private sector banks placed High Networth Individuals. The results of study may be useful for bank officials, corporate sector, financial consultants and researcher working in the area of banking and financial sector.