From the desk of Strategic Resources For any query, discussion or feedback, please contact Pavan Chandra, Head of Strategic Resources at pchandra@zenithoptimediaindia.com, +91-124-4195100. Office Address : 10th Floor, Vatika Tower, Block-B, Sector 54 Gurgaon -122002, Haryana, India.

Volume: VIII

November, 2007

 

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Financial Services

Share Prices

 

 

 

 

 

 

Sales and Market Share

Banks

 

 

Source: Indian Banks’ Association

 

 

 

28. Banks See 30% Higher Q2 Net: ASSOCHAM– November 08

Private sector banks report an average growth of 40% in Q2 of FY 2007-08 – ASSOCHAM

According to a study based on the quarterly results of 17 major banks and conducted by industry body ASSOCHAM (Associated Chambers of Commerce and Industry of India ), private sector banks reported an average growth of 40% in Q2 of FY 2007-08, while public sector banks recorded an average growth of 24%. However, almost all banks witnessed growth in overall earnings, which include treasury income, fee-based income and interest income. Yes Bank reported the highest increase in profitability of 110% followed by Axis Bank with 60.46%. Other banks that registered an increase in profit include Indian Bank (46.34%), Union Bank of India (42.04%), HDFC Bank (40.14%), State Bank of India (36.04%) and ICICI Bank (32.79%).

 

Source: The Economic Times

 

 

 

Mutual Funds

 

 

 

Source: Association of Mutual Funds of India

 

 

 

Trends, Marketing Initiatives and Others

Banks

 

 

 

29. Banks Could Take Telcos Help To Penetrate Rural India – November 07

Banks need innovation and a change in their approach towards financial inclusion – Report

According to a report by consultancy firm Boston Consulting Group (BCG), banks need to collaborate with telecom providers to increase the penetration in rural India. Titled The Next Billion Consumers, the report highlights the need for innovation by banks and a change in their approach towards financial inclusion. Only 34% of India’s population engaged in formal banking and the country has the second-highest number (about 135 million) of financially excluded households in the world.  Low income, poor proximity to financial services outlets and lack of formal employment make it difficult for these consumers to participate in formal banking. They also find formal channels intimidating and have a poor grasp of financial offerings. In such a scenario, the mobile handset could become the sole banking channel for many consumers as most already have access to telecom services.

 

Source: The Economic Times

 

 

 

30. AmEx Launches Corporate Charge Card With Kingfisher, Airtel – November 04

AmEx launches corporate charge card in collaboration with Kingfisher Airlines and Airtel

American Express, in collaboration with Kingfisher Airlines and Airtel, launched an airline corporate charge card that allows customers to convert their spending and phone calls into airline tickets. The programme also allows subscribers of the card to get two or more round trip tickets from Kingfisher Airlines every year through their routine expenditure through the card. Similarly, Airtel subscribers may also convert calls into free Kingfisher tickets.

 

Source: The Economic Times

 

 

 

31. Private Banks Bet Big On High-Value Services – October 29

Banking sector offer wealth management services to HNIs to earn revenues

In an attempt to encash the growing number of dollar millionaires, banks are offering advanced wealth management services to HNIs (high net worth individuals) with large portfolios. At present, there are nearly 1-lakh dollar millionaires in India and the number is growing at an annual rate of 20%. However, each bank has different thresholds for customers who can avail the premium service. For instances while ING Vysya Bank maintains the level at Rs 40 million, for Standard Chartered it is $1 million (Rs 39.3 million). 

 

Source: The Economic Times

 

 

 

Insurance

 

 

 

32. Bancassurance The Buzzword In Selling Insurance – October 26

India and China to lead bancassurance in emerging economies

According to a report by global reinsurance company Swiss Re, India and China will be the leading countries of bancassurance among the emerging economies. In India, private and public sector bank act as a corporate agent of a life or a general insurance company and some have floated insurance joint ventures. According to the report, bancassurance contributes to new business growth in India, especially among private sector companies and tie-ups with co-operative banks, and regional rural banks are seen as a cost-effective vehicle for insurers to tap into rural communities and fulfill their rural sector obligations. However, while bancassurance has been gaining popularity, it has also faced obstacles such market polarisation, for example, when large banks partner with only large insurers.

 

Source: DNA

 

 

 

Others

 

 

 

33. Reliance Money Ties Up With McDonald's To Distribute Financial Plans– November 06

Reliance Money enters into a tie-up with McDonald's in North India

Reliance Money, the financial services and products distribution company of Reliance Anil Dhirubhai Ambani Group, entered into a tie-up with global fast food chain McDonald's to provide services such as free trading account, gold coin retailing, mobile financial portal and Reliance money express to customers. The tie-up will also assist customers in opening a Reliance money account. Initiated in Chandigarh, this pilot process will be available in 18 McDonald’s restaurants in North India.

 

Source: The Economic Times

 

 

 

34. Religare Ties Up With Corporation Bank – November 13

Religare enters into partnership with Corporation Bank to increase penetration in the country

To increase its reach and penetration across the country, financial service provider Religare entered into a partnership with Corporation Bank for providing the company's Internet trading services platform to the bank's customers. The Internet trading facility or online trading service will be part of a 3-in-1 offering for the bank's savings account customers, which includes a savings and a depository participant account from the bank, along with an Internet trading account powered by Religare.

 

Source: The Economic Times

 

 

 

Product Launches

Banks

 

 

 

35. Kotak Bank’s Product For Salaried – October 24

Kotak Mahindra Bank launched the ‘salary 2 wealth’ account, designed for the salaried professionals, on 23 October, 2007. Besides offering conventional banking service, the salary 2 wealth account would provide services such as reimbursement account, investment account, demat account preferential loans, office banking, etc.

 

 

 

36. Deutsche Bank, Landmark Launch Co-Brand Credit Card – November 14

On 14 November, 2007, Deutsche Bank and Landmark, a retail bookstore chain, jointly launched a Deutsche bank-Landmark co-brand credit card that offers reward points to customers for the purchases made at Landmark stores.

 

 

 

37. HSBC Package For Rich Customers – October 19

HSBC, on 18 October, 2007, launched an enhanced version of the ‘HSBC Premier’ service for its mass affluent customers. The new HSBC Premier offers cross-border banking services where customers can take their accounts, credit history and banking relationships with them wherever they choose to live and work- subject to local regulations.

 

 

 

38. New Product From Karur Vysya – November 02

On 1 November, 2007, Karur Vysya Bank introduced – KVB Economy, a new variant of its multi-city current account product, which would require current account holders to maintain a minimum average balance of Rs 10,000.

 

 

 

Insurance

 

 

 

39. Future’s In The Insurance Space Now – October 25

The Future Group in a 74:26 joint venture with Italy’s Assicurazioni Generali, entered into the insurance space through the life and general insurance units, to be called Future Generali India Life Insurance Company and Future Generali India Insurance Company, respectively.

 

 

 

Mutual Funds

 

 

 

40. Lotus India AMC Launches Quant Based Scheme – October 23

Lotus India Asset Management Company launched Quant based scheme, Lotus India AGILE Fund (Alpha Generated from Industry Leaders Fund) on 22 October, 2007. The new fund offer priced at Rs 10 per unit opened for subscription on 25 October, 2007 and will close on 23 November, 2007.

 

 

 

Advertising Campaigns

 

Insurance

 

 

 

41. ICICI Prudential Life Insurance Urges People To Calculate Cost Of Post-Retirement Needs – October 20

ICICI Prudential Life launches new TVC to generate awareness about retirement solutions

ICICI Prudential Life Insurance launched a new TVC focusing on the message ‘Retire from work, not from life’. Conceptualised by ad agency Lowe, the main objective of the campaign is to generate awareness on the various retirement solutions available to plan one’s retirement in a systematic manner. The campaign aims at inducing the customer to take action and start planning for their post retirement lifestyle by calculating the cost of their post-retirement needs, referred to as the ‘retirement number’ in the campaign. The main objective of the campaign is to get people to understand that whatever their retirement dreams may be – big or small – there is a cost attached to it. The marketing strategy is to generate adequate understanding among people on the need and importance of early retirement planning.

 

 

 

The ad starts with the ringing of an alarm clock, which symbolises the beginning of a workday.

 

  

 

Having established the context, the ad takes forth the idea of the ‘retirement number’ required to meet each aspect of the dream, through a calculator.

 

  

 

All this is done through a banter between a husband and wife, and ends with ‘Jeetey raho’ tagline.

 

A mix of several media such as TV, press, outdoor and radio has been used for the campaign to maximise visibility.

 

Source: Exchange4media

 

 

 

42. Tata AIG Life Insurance TVC Emphasises The Consequences Of Procrastination – October 20

Tata AIG Life Insurance launches a TVC titled ‘A new look at life’

Tata AIG Life Insurance launched a new commercial titled ‘A new look at life’. The TVC, produced by Equinox Films, begins with the close up of an 80 year old man, who is thinking of all the ‘if onlys’ in his life. His face seamlessly and subtly changes from that of an 80- year-old to a 70-year-old to a 60-year-old and so on, till he is around the age of 30, wherein he is seen as a successful executive seated in his office. It is then revealed that the entire sequence is a flash-forward of things that could have taken place in his future life. This moment of blinding truth about the future convinces him of the need to make his insurance decision at present. He then puts forth the question, ‘Would you like to look back at a life tinged with regret, or look forward to a life of hope and promise?’ The TVC attempts to bring to attention the consequences of postponing decisions. The campaign is showed across TV, print, radio and out-of-home media.

 

Source: Exchange4media