State Bank of Patiala

State Bank of Patiala

State Bank of Patiala is a public sector bank in India with its headquarters at Patiala a city in the state of Punjab The bank is an associate of the State Bank Group 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 called Patiala State Bank After independence in 1947 the bank became a subsidiary of the state government 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 meet the needs of such segments The segments are for the purposes are as follow
Personal banking
Agriculture rural banking
NRI banking
SME corporate banking
Government banking
Internet banking
Mobile banking

The bank has now added a golden chapter to its history by fully networking all its branches on Core Banking Solutions on 08082005 and become the first fully networked Public Sector Bank in the country

Bank distribute through

As far as the distribution channel of products and services of the bank is concerned I have come to know that state bank of Patiala has mostly indirect channels of distribution of its products and services but direct channels also to some extent The bank is having various tie ups with many companies for the distribution of its products If the loan section is taken bank maximum use its indirect channel for the distribution of the products which are as follow

Scheme for Financing of Commercial Vehicles under Tieup with
Ashok Leyland Limited
Eicher Motors Limited
Force Motors Limited
Tata Motors Limited
Maruti udhyog ltd
Mahindra motors

Scheme for finance of Motor Cycles and Scooters under Tieup with
Hero Honda Motors Limited

Scheme for extending facilities to Franchisee outlets in the form of Bank GuaranteeTerm Loan

Monte Carlo Cotton County

Bank 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 Aviation Services Ltd which will ensure 100 per cent financing of the tuition fee of its students for the oneyear courses in aviation crew and hospitality and travel industry Moreover for the NRI banking bank is having again indirect distribution channel and having various tie ups with
Thomas cook money transfer
Wall Street money exchange
Western union money transfer

SBOP has also various tie ups with foreign banks for the transfer of funds currency etc The SBOP also provides the various services like insurance mutual funds etc and for its distribution the bank is having SBI life oriental insurance ltd SBI mutual funds SBI card etc As far as direct channels are concerned bank used the internet banking and mobile banking for its distribution of the products

Why SBOP use indirect channel so

Now 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 are

Direct Channel

A direct distribution channel is where a company sells their products direct to consumers

Indirect Channel

The indirect channel is used by companies who do not sell their goods directly to consumers

But the direct channel has one major drawback ie 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 3035 of retail price Also recruiting training motivating and retaining good sale people is difficult and expensive task For direct selling facetoface interaction must be capable of producing a significant value addition to the consumer compared to be purchasing from retail shop Finally channel becomes fail when circumstances changes

So in order to overcome from all these problems bank mostly uses the i

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