The country's public sector banks (PSBs) are going in for an image overhaul ahead of the scheduled opening of the financial sector to foreign competition in 2009.
The exercise was led by Bank of Baroda, which spent an estimated Rs 20 crore for rebranding, followed by Canara Bank. On Monday, the Mumbai-based Union Bank of India unveiled its new logo, which cost the state-run lender close to Rs 3 crore. The entire rebranding exercise cost the bank Rs 75 crore.
Some of the older lenders, such as Jammu & Kashmir Bank, Catholic Syrian Bank and South Indian Bank, have also donned new identities. Ad industry experts look at the rebranding exercise as a preparation for further competition as the Reserve Bank of India is scheduled to decide if it will allow greater play for foreign banks from next April.
“Every single bank is gearing up to face competition post-2009. It’s not only about rebranding, it’s a transformation process, where branding is an important element,” said Mudra Managing Director & Chief Executive Madhukar Kamath.
A private bank executive, who did not want to be named, said the image makeover and the brand building process is in line with the efforts of the PSBs to tap the core banking population, which is heavily biased towards the youth.
“This entire generation is different. With more and more private banks coming in, the definition of customer service has undergone a dynamic change. The private sector as well as foreign banks enjoy a clear preference over their public counterparts in this regard. So PSBs are left with no option but to go in for a makeover,” he added.
Union Bank of India Chairman and Managing Director M V Nair said it is time for banks to reinvent their images. “The time for new-age banking has arrived. The customer profile is going to change, the expectations are going to change, and hence we need to position ourselves accordingly,” he said.
However, Nair categorically mentioned that the real image makeover would never be successful unless it is reflected in the bank’s performance. “We have worked for 18 months to transform this bank and position itself as a global bank by 2012. The new logo comes in as the last step of the entire process,” Nair added.
