Price Mix of Banking sector
The price mix in the banking sector is nothing but the interest rates charged by the different banks. In today’s competitive scenario where customer is the king the banks have to charge them interest at the rate in force on accordance with the RBI directives.
Banks also compete in terms of annual fees for services lie credit cards, DMAT etc. another important part of the banks pricing policy today is the interest charged on the Home Loans and Car Loans. With India’s economy progressing there are more and more buyers seeking these loans but at a very competitive interest rate.
Let’s understand this with an example. A particular buyer approaches for a car loan say for a period of 3 years. He is charged Rs. 20,000 as interest. however if a sales representative of another bank comes to know of this deal he will try to attract the customer by giving him a better deal that is a loan at a lower rate on interest. In this way due to the high level of competition the customer benefits.
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