History of Bank of India


In this term paper I have mentioned history of Bank of India, Bank of India (BoI), established on 7 September 1906 is a bank with headquarters in Mumbai. Government-owned since nationalization in 1969, It is one of India's leading banks, with about 3140 branches including 27 branches outside India. Service marketing environment, services marketing mix, the service segmentation have been described. Besides it I also mentioned the customers expectations and difference services of the Bank of India. Designing service blueprint and setting standards, drafting services cape, pricing of services, managing the waiting lines etc. have been explained in this term paper.


Bank of India (BoI), established on 7 September 1906 is a bank with headquarters in Mumbai. Government-owned since nationalization in 1969, It is one of India's leading banks, with about 3140 branches including 27 branches outside India. BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications) in India which facilitates provision of cost-effective financial processing and communication services. The Bank completed its first one hundred years of operations on 7 September 2006.


The Bank of India (BOI) was set up in 1906 and was nationalized in 1969 along with 13 other banks. BOI began operations with one office in Mumbai, and currently it has approximately 2,628 branches in India. BOI came out with an IPO in 1997. BOI provides a wide range of banking products and financial services to corporate and retail

Customers. The bank provides specialized services for businesses (dealing in foreign exchange), NRIs, merchant banking, etc. Apart from this, it also has specialized branches that deal in asset recovery, hi-tech agricultural finance, lease finance and treasury, and small scale industries. Recently, the bank has diversified into offering products (and services) such as mutual funds, venture capital, depository services, bullion trading and credit cards. BOI is a leading player in retail banking and it was the first nationalized bank to establish a fully computerized branch and an ATM facility in India. It has a strong network of approximately 270 branches that provide export credit. BOI is among the top banks in India that provide export credit to industries such as diamond export. The bank is among those that have been offering banker services to the Bombay Stock Exchange and are managing the latter's clearing house since 1921. The Bank of India has initiated many services to meet the worldwide needs of its clients and leverage its domestic banking strengths. The bank has a global presence through its branches.


Services marketing environment is in which the service is performed. Tangible elements of the facility, the firm's atmosphere, and other customers present are part of this environment. These elements will impact the customer's expectations during the service as well as their evaluation after the service is performed.

In Bank of India the services marketing environment will help to reduce capacity, costs, improve manageability and enhance business continuity. With fewer interruptions and less downtime, the Bank can lower costs and gain competitive advantage in the marketplace. The total process of implementation was completed one year ahead. "It was made possible due to the support from each and every level of executives. The project model was also followed very well. IT redundancies are eliminated and server, storage and application sprawl have been overcome by consolidating data centre and networks into fewer, centralized locations. Most of our branches are now providing core banking and we are in the process to bring all the branches under the system. In this process, BoI has planned to centralize its 500 ATMs spreading across the country. As a part of the contract, the overall costs of BoI will be reduced by15-20%," concluded Kalyansundar.


The services marketing mix constitutes the variables service firms can manage in order to produce sales and profits. These variables can be used to differentiate a firm from its competitors and to build a competitive advantage. The elements of the service marketing mix include the service outcome (the product), the price, distribution, promotion, and firm image.

  1. PRODUCT:- there are various products/services of Bank of India. These are given below:
  2. SERVICES: Card To Card Money Transfer, Currency Exchange, Demat Services, Direct Tax Payment, Electronic Clearing Service, Mobile Phone Banking, Multi City Cheque Facility, Net Banking, Pension Disbursement, Personal Tax Assistance & Investment, Portfolio Management, Retail Sale Of Gold Coin, Wealth Management Service.

    INVESTMENT PRODUCTS: Bonds, Equity, Fixed Deposit, Flexible Deposit, Insurance, Mutual Fund, Stock Invest.

    BUSINESS LOANS: Business Loans, Loan Against Deposit, Professional Loan, Project Finance, Self Help Group Finance, Term Finance, Trade Finance.

    CARDS: Corporate Credit Card, Credit Card, Debit Card, E-Shop Card, Loyalty Cards, Remittance Card, Travel Currency Card.

    ACCOUNT TYPES: Current Account, Demat Account, Fixed Deposit Account, Recurring Deposit Account, Saving Account.

    PERSONAL LOANS: Agricultural Loan Schemes, Commercial Vehicle Loan, Consumer Goods Loan, Educational Loan, Four Wheeler Loan, Home Improvement Loan, Housing Loan, Loan Against Deposit, Loan Against Gold, Loan Against Property, Loan Against Share, Loan Against Vehicle, Personal Loan, Two Wheeler Loan.

  3. PRICE:- In case of price Bank of India charges different-different price for different service/product. It charges Rs.40 for Demand Draft. For Saving Bank Account it charges Rs.100. But in case of Self Help Group in rural areas it does not charges for opening the Saving Bank Account. In case of Fix deposit account it prefers the customers to deposit money for a particular period of time. For a Partnership Account it has condition that the minimum balance should be 500 rupees in a account. In spite of these accounts there are many products for that Bank of India charges in a different-different manner.
  4. DISTRIBUTION:- Basically distribution is the accessibility and availability to the customers. It is one of India's leading banks, with about 3140 branches including 27 branches outside India. It is accessible to its rural customers and urban customers with ATM and providing other facilities.
  5. CORPORATE AND BRAND IMAGE:- An important element in the purchase decision of services is the image consumers have of the firm and brand. In case of Bank of India people know that it is the public sector bank in India. Its turnover and number of branches and service given by Bank of India is unique. So people have great image about Bank of India in their mind. It also provides its service to rural poor people and Self Help Group. So I can say that its brand image is good in Indian market.
  6. PROMOTION:- The awareness about Bank of India is almost across the country. But currently the Bank of India is promoting its various schemes by various ways.
    • By Online: it promotes its products online. As various people of India surfing the net so it is better idea to promote its product.
    • By Mobile: Many Indians are using mobile very frequently. so Bank of India chosen this option for promoting its product. It is easy option also to promote the brand and to easily access its customers.
    • Kisan Mitra Scheme: with the objective of financial inclusion of the common masses the Bank of India has introduced Kisan Mitra Scheme.
    • Micro Credit: it is also just like a scheme and providing this scheme to its customers Bank of India tried to capture its various types of customers and this is a proactive step to attract the customers.


Bank of India provides various services segmentation to its customers. According to customer demand, expectations and to compete in the competitive market Bank of India has great service segmentation.

Bank Services for Indians: Bank of India provides its service to large number of Indian customers like Demat Account, Savings bank Account, Cash Credit Account, Current Account, Salary Account, Recurring Deposit Account, Over Due Account etc.

Bank Services for Indian Settled Abroad: The bank puts a special focus on expatriate Indians and provides them with its special NRI services and products solely aimed at them. The bank gives ample of stress upon its specifically designed NRI services enabling easy transfer of funds and various other such schemes in its branches opened abroad.


In the present scenario of competitive banking, excellence in customer service is the most important tool for sustained business growth. Customer complaints are part of the business life of any corporate entity. So Bank of India provides a Customer Complaints Service (CCS). This is more so for the Bank of India because Banks are service organizations. As a service organization, customer service and customer satisfaction should be the prime concern of any bank.

Customers are treated fairly at all times in Bank of India.

Complaints raised by customers are dealt with courtesy and on time in Bank of India

Customers are fully informed of avenues to escalate their complaints/grievances within the organization and their rights to alternative remedy, if they are not fully satisfied with the response of the Bank of India to their complaints.

Bank of India will treat all complaints efficiently and fairly as they can damage the bank's reputation and business if handled otherwise.

The employees of Bank of India must work in good faith and without prejudice to the interests of the customer.

In order to make bank's redressed mechanism more meaningful and effective, a structured system needs to be built up towards such end. Such system would ensure that the redressed sought is just and fair and within the given frame-work of rules and regulation. The policy document would be made available at all branches. The concerned employees should be made aware about the Complaint handling process.


In quality concerns of Bank of India we can talk about customer satisfaction in Bank of India. The Bank of India believes that providing prompt and efficient service is essential not only to attract new customers, but also to retain existing ones. This policy document aims at minimizing instances of customer complaints and grievances through proper service delivery and review mechanism and to ensure prompt redressed of customer complaints and grievances. The review mechanism should help in identifying shortcomings in product features and service delivery. Customer dissatisfaction would spoil bank's name and image. The bank's policy on grievance redressed contains the under noted principles.

CUSTOMER CARE SERVICE: The Bank of India provides a better customer care service to satisfy its customers. It is the strength of Bank of India.

ATM SERVICES: The Bank of India ATM services are provided all over India. There are numerous Bank of India ATM counters spread across India. So where ever you are you have a Bank of India ATM ready for you nearby. This makes the customer satisfaction with this service.

ONLINE BANKING: This is also a quality concern of Bank of India. It provides online banking so that busy customer can save its time and energy.

VARIOUS TRANSACTIONS: In quality concerns of Bank of India various transactions could be taken. Like Demat Account, Saving Accounts, Trading Accounts etc, that give the customer satisfaction.


In Bank of India or any banks this gap model are applicable. There are five principal reasons why these expectations are not met:

  • Gap1- What management believes customers want does not match what they really do need
  • Gap 2 - Management's ability to translate those expectations into service specifications
  • Gap 3 - Service not being delivered as specified
  • Gap 4 - External communications to customers setting the wrong expectations
  • Gap 5 - Customers having the opinion or feeling that their expectations have not been met:

The Service Quality Model homes in on where discrepancies in perception and implementation occur. This makes it an ideal vehicle for discussing the importance of establishing a shared understanding of what "success" looks like, for any initiative. The tool is fully adaptable; the same principle could be adapted to other considerations, such as the gaps in perception and implementation of company objectives, measures.


In this term paper, we report the empirical findings of a study related to actual Customers who complained to Bank of India for service failure and were more or less Satisfied with the service recovery they were offered. In the following sections, we Elaborate a theoretical model of the effects of dis/satisfaction specifically with service Recovery. The main elements of the model are borrowed from a well established Psychological model, the Affect Control Theory, developed below.


Affect Control Theory (ACT) predicts that people act in such a way that the Impressions generated by events confirm their sentiments. (Heise, 1979, 1989a, b; MacKinnon, 1994). Contrary to disconfirmation theory, which suggests that consumers React to a cognitive evaluation (i.e., the discrepancy between expected and real service), Individuals are not assumed to calculate dis/satisfaction with service recover they rather experience dis/satisfaction-related emotions and react to their Emotions. Individuals are assumed by ACT to behave in such a way that they create Events that confirm the sentiments about themselves and others in the current situation.

For instance, consumers, who have not been offered a satisfactory service recovery may Quit the company in order to maintain their sentiments about themselves; conversely, Should they have to stay, their self image would be negatively affected. The Effects of Switching Costs on Dissatisfied Customers: Switching to a competitor involves effort, time and money, which constrains the Consumers to remain "loyal". Switching costs (SC) may be perceived or real. They constitute barriers which prevent customers from moving from a competitor to the next.

Switching costs are regarded as a powerful marketing tool meant to constrain consumers' Behavior (e.g., Klemperer 1995), in the sense that they induce repeat purchase Since SC enhance price inelasticity, they have been considered as a tool to generate profits (Farrell and Shapiro 1988). These effects have made them a popular strategy among marketing managers.


Blueprinting of the Bank of India is the process of diagramming the operation service of Bank of India.


In Bank of India positioning of a brand means emphasizing its distinctiveness based on characteristics that are relevant to the potential/ actual customer.

Bank of India attempt to create a unique position for their brandsa set of attributes that set the brand apartfrom competitors. The only way to gauge the effectiveness ofthat positioning effort, indeed, to determine what a brand'sposition actually is, is to survey customers and develop perceptualmaps showing the locations of Bank of India service. A perceptual map developed using probabilistic multidimensional scaling (MDS)algorithms depicts the relative position of business-class and upscale banking based on these perceptualmaps show the relative positions of banking brands as customerssee them. Statistical techniques allow marketers to determinewhether brands' relative positions are significantly differentor whether various brands are seen as essentially similar. Moreover,comparison of the perceptual maps over time shows the "movement"of the brands' positions from year to year.



The service is designed around a customer helping self with the service .The role of service employees is limited. Customer performs most of the activities, either on their own or with a little help from the provider. Examples are ATMs, cinema halls, gymnasium and self service restaurants etc. The service provider must plan the facility exclusively with the customer in mind. The facility design can attempt to position it for the desired market segment, by making the facility pleasing and appropriate to use for them. A gym layout and design and design (choice of equipment) conveys the segment of population that is targeted - slimming enthusiasts, body shapers, sportspersons, business executives and housewives or the youth.


When a service encounter requires a close interaction between the customer and provider the services cape must be facilitate this interaction. An interpersonal services cape is appropriate. Couriers, hospitals, schools and banks are examples of this type of services capes, they must be designed to attract, satisfy and facilitate the activities of both conducive to the interaction between the two.


There are service settings where there is little or no customer involvement in the services cape. Telecommunications, insurance and call centers etc., are examples of remote encounters. These use remote services capes. They are back office .The place has to be designed to keep employees' motivation and morale high. The services cape should premeditate ergonomically to facilitate teamwork, supervision and operational efficiency.


Role of employees:

  • Each should greet the other.
  • The customer must ask at least one question about a delivery the item and order at least banking service.
  • The employees of Bank of India must answer the question, take the order, ask the customer a question, and check to see if the customer is satisfied with the banking service.
  • Knowledge: Vocabulary and structures used to place or take an order in the target language and the questions asked and the answers provided were complete and correct.
  • Comprehension: Responses and interactions between customer and bank manager showed understanding and facility.
  • Communication: Interpersonal strategies were complete, appropriate and correct.

Customers' roles in service experiences

Within the levels of participation just discussed, customers can play a variety of roles. Through a review of literature which has contributed to our understanding of customer participation we have identified three of these:

  • the customer as productive resource;
  • the customer as contributor to quality, satisfaction and value; and
  • the customer as competitor to the service organization.

These roles are not mutually exclusive; meaning an individual's co-productive behaviors in a specific situation may apply to more than one of the three roles. Elements of each role may be at play in a given service transaction. A description of these roles and their implications follows. Afterwards, the discussion of two empirical research studies further illustrates customer participation levels and the roles customers can play in service delivery.


Bank of India ISMC used to describe a holistic approach to marketing communication. It aims to ensure consistency of message and the complementary use of media. The concept includes online and offline marketing. If practiced properly, Integrated Marketing Communications is a healthy balance that can yield unlimited results beneficial to the organization's goals. Defining IMC has been controversial and has caused a lot of argument among experts, but generally it is described as the mix of all promotional efforts into "whatever works." With that in mind, bank has begun applying this notion as part of their everyday outreach.

To begin with, traditional Marketing suggests the theory of the 4 Ps marketing mix, Product, Promotion, Price and Place (note that Place is often referred to not only as Location but also as Distribution). The ultimate goal is to combine the Ps in such a way that the fifth element is generated, and is known to all of us as Profit.

Specifically, marketing methods and strategies will vary from banking sector to other sector and some significant factors to analyze and research prior to drafting are: property size, management structure, type of ownership and type of bank area demographics and psychographics, as well as the dynamics of the internal and external environment.

Once the research is complete, the goals have been identified, and the competitive advantage has been determined, the next step is to select.


In Bank of India there are different-different charges of services. it provides various services like Demat Account, Fixed Deposit, Saving Account and ATM Service also. But in case of ATM service it does not charges directly from the customers. For Demat Account it charges Rs.40 rupees. For Saving Account there should be minimum balance of 50 rupees. In rural area it does not charge opening the Self Help Group Account. So in this way the pricing of the services of the Bank of India are across the country.


Bank of India providing its services through intermediaries also. Because in rural area many of the rural people may not be knowing about the various services of the Bank of India. So on the commission basis these intermediaries are working. Whether to open account in the Bank of India or loan purpose.


Though the Bank of India is a public sector bank in India. So it has a skilled full employees and they know how to manage the number of customers.

  • Providing news papers
  • Giving some information about some schemes
  • Providing business magazines
  • To avail water in the bank for the cusomers


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  • http//:www.unionbankofindia.co.in/au_directors.doc.
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