35847069 comparative study of the public sector amp private sector bank(2)

8/7/2019 35847069 Comparative Study of the Public Sector Amp Private Sector Bank(2)

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PROJECT REPORT

ON

COMPARATIVESTUDY BETWEENPRIVATE SECTOR

BANKS ANP PUBLICSECTOR BANKS


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PREFACE

Someone has rightly said that practical experience is for

better and closer to the real world then mere theoretical

exposure. The practical experience helps the students viewthe real world closely, which in turn widely influences their

perceptions and argument their understanding of the real

situation.

Research work constitutes the backbone of any

management education programme. A management student

has to do research work quite frequently during his entire

span.

The research work entitle COMPARATIVE STUDY

BETWEEN PRIVATE SECTOR BANKS AND

PUBLIC SECTOR BANKS aims to analyze various

services provided by private sector banks and public sectorbanks for this purpose MATHURA city have been chosen.


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ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of my summer

training project work not only to one individual effort of all

those who concern with it. I want to thanks to all thoseindividual who guided me to move on the track.

The project Report entitled COMPARATIVE

STUDY BETWEEN PRIVATE SECTOR AND

PUBLIC SECTOR BANKS

I am gratefully indebted to Mr. for providing me all the

necessary help and required guideline for the completion of

my project and also for the valuable time that he gave me

from his schdedule.


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TABLE OF CONTENTS

CHAPTER

NO.

PARTICULARS PAGE NO.

1 INTRODUCTION OF

THE STUDY

1-23

2 OBJECTIVES OF THE

STUDY

24-25

3 3.1 RESEARCH

METHODOLOGY

3.2 LIMITATIONS OF

THE STUDY

26-36

37

4 DATA ANALYSIS AND

ITS INTERPRETATION

38-46

5 FINDING OF THE

STUDY

47-50

6 SUGGESTIONS 51-54

7 CONCLUSION 55-56

8 BIBLIOGRAPHY 57-58

9 ANNEXURE 59-62


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IntroductionThe world of banking has assumed a new dimensionat dawn ofthe21st century with the advent of tech banking, thereby lendingthe industry a stamp of universality. In general, banking may be

classified as retail and corporate banking. Retail banking, which is

designed to meet the requirement of individual customers andencourage their savings, includes payment of utility bills,

consumer loans, credit cards, checking account and the like.

Corporate banking, on the other hand, caters to the need of

corporate customers like bills discounting, opening letters of credit,

managing cash, etc.

Metamorphic changes took place in the Indian financial system

during the eighties and nineties consequent upon deregulation and

liberalization of economic policies of the government. India began

shaping up its economy and earmarked ambitious plan for

economic growth. Consequently, a sea change in money and

capital markets took place. Application of marketing concept in the

banking sector was introduced to enhance the customer satisfaction

the policy of privatization of banking services aims at encouraging

the competition in banking sector and introduction of financial

services. Consequently, services such as Demat, Internet banking,

Portfolio Management, Venture capital, etc, came into existence to

cater to the needs of public. An important agenda for every bankertoday is greater operational efficiency and customer satisfaction.

The mew watchword for the bank is pretty ambitious: customer

delight.

The introduction to the marketing concept to banking sectors can

be traced back to American Banking Association Conference of

1958. Banks marketing can be defined as the part of management

activity, which seems to direct the flow of banking services

profitability to the customers. The marketing concept basicallyrequires that there should be thorough understanding of customer

need and to learn about market it operates in. Further the market is

segmented so as to understand the requirement of the customer at a

profit to the banks.


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DEFINITION OF BANK

The Oxford dictionary defines the Bank as,

An establishment for the custody of money, which it pays out, on a

customers order.According to Whitehead,

A Bank is defined as an institution which collects surplus funds

from the public, safeguards them, and makes them available to the true

owner when required and also lends sums be their true owners to those who

are in need of funds and can provide security.

Banking Company in India has been defined in the Banking Companies act

1949,

One which transacts the business of banking which means the

accepting, for the purpose of lending or investment of the deposits of money

from the public, repayable on demand, or otherwise and withdraw able be

cheque, draft, order or otherwise.

The banking system is an integral subsystem of the financial system. It

represents an important channel of collecting small savings form the

households and lending it to the corporate sector.

The Indian banking system has Reserve Bank of India (RBI) as the apex

body for all matters relating to the banking system. It is the central Bank ofIndia. It is also known as the Banker To All Other Banks.


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NEED OF THE STUDY

This study has been conducted to come out with the information

related to the Indian banking industry and their impact on Indian

economy. How the banking industry is growing in India and

boosting the Indian economy, also to get information about

private sector and government sector banks. Which sector is

doing well and what are the reasons behind it. So this study has

been conducted to come out with followings.

Comparative analysis of public and private sector banks.

Find out the important terms used in banking industry.

Find out the new strategies adopted by banks to attract

new customers and retain the existing.

To know the growth in banking sector and its effect on

Indian economy.


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EVOLUTION OF INDIAN BANKING

Ancient banking system of India constituted of indigenous bankers. Theyhave been carrying on their age-old banking operations in different parts of

the country under different names. The modern age of banking constitutes

the fundamental basis of economic growth. The term Bank is being used

since long time but there is no clear conception regarding its beginning.

According to the viewpoint, in good old days. Italian money leaders were

known as Banchi because they kept a special type of table to transact their

business.


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IMPORTANCE OF BANKS

Today banks have become a part and parcel of Kotak Bank's life. There was

a time when dwellers of the city alone could enjoy their services. Now banks

offer access to even a common man and their activities extend to areas

hitherto untouched. Banks cater to the needs of agriculturalists,

industrialists, traders and to all the other sections of the society. In modern

age, the banking constitutes the fundamental basis of economic growth.

Thus, they accelerate the economic growth of a country and steer the wheels

of the economy towards its goals of self reliance in all fields. It naturally

arouses Kotak Bank's interest in knowing more about the Bank and the

various men and the activities connected with it.


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Indian Banking System

Banking in India has its origin as early as the Vedic period. It was

believed that transition from money lending to banking must have

occurred even before Manu, The great Hindu Jurist, who has

devoted a section of his work to deposit advance and laid down

rules relating to rates of interest. During the Mogul period, the

indigeneousBankers played a very important role in lending money

financing foreign trade and commerce. During the days of East

India Company, it was turn over the agency houses to carry on the

business. The General Bank of India was the first to join sector

in the year 1786.The others that followed were the Bank of

Hindustan and the Bengal bank. The bank of Hindustan is reportedto have continued till 1906 while the other two failed in the

meantime.

In the first half of the 19th century the East India Company

established three banks:

1. Bank of Bengal (1809).2. Bank of Bombay (1840).

3. Bank of Madras (1843.

These three banks are also known as Presidency Banks were

independent units and functioned well. These three banks were

amalgamated in 1920 and Imperial Bank of India was established

on 27th january1921, which started as private shareholders banks,

mostly Europeans shareholders, with the passing of time Imperial

bank was taken over by the newly constituted State bank of India

act in1955.In 1865 Allahabad Bank was established and first time

exclusively by Indians, Punjab National Bank Ltd. was set up in

1894 with headquarters at Lahore. Between 1906 and 1913, Bank

of India, Central Bank of India, Bank of Baroda, Canara Bank,

Indian Bank, and Bank of Mysore were set up. Reserve Bank of

India came in 1935. On July, 1969, 14 major banks of India were


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nationalized and on 15th April, 1980 six more commercial private

banks were also taken over by the government.

Reserve Bank of IndiaThe Banking system is an integral sub-system of the financial

system. It represents an important channel of collecting smallsavings from the households and lending it to the corporate sector.

The Indian banking system has The Reserve Bank of India (RBI)

as the apex body from all matters relating to the banking system. It

is the Central Bank of India and act as the banker to all other

banks.

Functions of RBI:

Currency issuing authority

Banker to the government.

Banker to other Bank.

Framing of monetary policy.

Exchange control.

Custodian to foreign exchange and gold reserves.

Development activities.

Research and development in the banking sector.


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CLASSIFICATION OF BANKS

On the basis of Ownership

PUBLIC SECTOR BANKS

Public sector banks are those banks that are owned by the government. The

government owns these banks. In India 20 banks were nationalized in 1969

and 1980 respectively. Social welfare is there main objective.

PRIVATE SECTOR BANKS

These banks are those banks that are owned and run by private sector. An

individual has control over these banks in proportion to the shares of the

banks held by him.

CO-OPERATIVE BANKS

These are those banks that are jointly run by a group of individuals. Each

individual has an equal share in these banks. Its shareholders manage the

affairs of the bank.

According to the Law

SCHEDULED BANK

Schedule banks are the banks, which are included in the second schedule of

the banking regulation act 1965. According to this schedule bank:


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1. Must have paid-up capital and reserve of not less than Rs500, 000.

2. Must also satisfy the RBI that its affairs are not conducted in a

manner

Determinate to the interest of its depositors.

Schedule banks are sub-divided as:-

a) State co-operative banks

b) Commercial banks

NON-SCHEDULED BANKS

Non -schedule banks are the banks, which are not included in the second

schedule of the banking regulation act 1965. It means they do not satisfy the

conditions lay down by that schedule. These are the banks having paid up

capital, less than Rs.5Lakhs. They are further classified as follows:-

A. Central Co-operative banks and Primary Credit Societies.

B. Commercial banks

According to Function

COMMERCIAL BANKS

These are the banks that do banking business to earn profit. These banks

make loans for short to business and in the process create money. Credit

creation is the main function of these banks.

FOREIGN BANKS

These are those banks that are incorporated by foreign company. They have

set up their branches in India. These banks have their head offices in foreign


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countries. Their principle function is to make credit arrangement or the

export and the import of the country and these banks deals in foreign

exchange.

INDUSTRIAL BANKS

Industrial banks are those banks that offer long term and medium term loan

to the industries and also work for their development. These banks help

industries in sale of their shares, debentures and bonds. They give loan to the

industries for the purchase of land and machinery.

AGRICULTURAL BANKS

Agricultural banks are those banks that give credit to agricultural sector of

the economy.

SAVING BANKS

The principle function of these banks is to collect small savings across the

country and put them to the productive use. In India department of post

office functions a savings banks.

CENTRAL BANK

Central Bank is the apex bank of the banking system of the country. It issues

currency notes and acts a banker's bank. Economic stability is the principle

function of this bank. In short, it regulates and controls the banking system

of the country. RBI is the Central Bank of India.


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PRIVATIZATION OF INDIAN BANKING

For the public sector banks, the era of bumper profit is over. For much of the

last decade the process of collaborated financial liberalization had cleared up

the Banks balance sheet enabling them to with stand increased competition,

global financing, turmoil and even unprotected industrial slow down. But the

cycle of liberalization has run its full course. Now it is the time for the big

structural leap, rationalization, mergers, and privatization. Unless the banks

undertake these fundamental changes, their profit will stay under pressure.

There are twp areas of competitions which banking industry is facing

internationally and nationally. In the pre-liberalization era, Indian banks

could grow in a closed economy but the banking sector opened up for

private competition. It is possible that private banks could become dominant

players even within India. It has been recorded a rapid rise of the new

private sector banks and it has tracked the transformation of the public sectorbanks as they grapple with the changes of financial deregulation.

Use of ATM cards, Internet Banking, Phone Banking, Mobile Banking are

the new innovative channels of banking which are being widely used as they

result in saving both time and money which are two essential things that

every one is short of and is running to catch hold of them. Moreover private

sector banks are aligning its infrastructures, marketing quality and

technology to build deep commitment in building consumer and retail

banking. The main focus of these banks is on innovative range of services or

products.


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STRUCTURE OF BANKING SYSTEM

Different countries of the world have different types of banking systems.

However, commercial banking had grown under all these banking systems.

To understand the structure of banking system, let us take up various types

of banking systems one by one. These types are:

(1) UNIT BANKING

Unit Banking originated in the United State of America. It grew in the

United States of America. As a counter part of independent or industrialunits.

An independent unit bank is a corporation that operates one office and that

is not related to other banks through either ownership or control.

Shaper, Solomon and White.

Thus under unit banking, a single bank is a complete organization in itself

having its own management. The scale of operation is small and the area is

restricted to a locality only. Unit banking is localized banking and is much

more responsive to the needs of the locality. It has better understanding of

the local problems and conditions, which helps it to cater to the needs of the

area in a better way. The staff of the unit bank is generally local and is in a

better position to determine the standing or desirability of the customers.

The failure of the unit bank will not endanger the banking system and

economy. It is free from the difficulties and diseconomies of large scale

operations. It will not drain out the financial resources of villages and small

towns to big industrial centers and will ensure a balanced growth.


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(2) BRANCH BANKING:

Economic and Managerial problems faced by the unit banks let to the

emergence of banking system. Now, This the most popular and important

banking system. In branch banking, a bank has a large network of branches

scattered all over the country. Branch banking developed in England.

Subsequently most of the countries of the world adopted the system. In

terms of branches, the State Bank of India has emerged as one of the largest

banks in the world.

As under the system the resources of a number of branches get pooled under

the same management, any individual branch is in a better position to face

excessive withdrawals by the customers. It facilitates diversification of

activities because the area covered by the branches is generally widespread.

Under the system branches can operate without keeping large idle cash

reserves. It becomes possible for the bank to hire the services of competent

and professionally qualified managers, capable of understanding the

handling technical problems and complex situations. The cost of remitting or

transferring funds from one place to another works out to be less. The staff

stays at a branch only for a limited period, so the chances of objective

decision making in the branch banking are high.

Branch Banking tends to bring homogeneity in the prevailing Interest Rates

as it increases the mobility of resources from one place to another. It is

easier for the Central Bank to exercise Control. It will communicate only

with a few Registered /Head Offices of the Banks and not with each

individual branch. In this system there more safety and liquidity of funds.

The choice of securities and investments is larger. Branch banking makes

complete banking services available to the smallest communities. The

branches in small localities can be initially operated at loss in expectation of

future gains.


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The comparative study of unit banking and branch banking is a case of small

scale banking versus large scale banking. It is evident that the scale is clearly

titled towards branch banking. With the growth of large scale business it is

no wonder that the trend is almost every country towards the branch banking

i.e. big banks with a network of branches all over the country. Even in the

U.S.A. The birthplace of unit banking. The Bank of America has now more

than 500 branches in the state of California itself.

(3) CHAIN BANKING :

Shaper, Solomon and White have defined Chain Banking as

An arrangements by which two or more banks each of which retains its

identity, capital and personnel are brought under common control by any

device other than a Holding Company.

Under the system there is pooling of resources. Chain banking overcomes

certain limitations of unit banking. But the system suffers from certain

limitations of its own. There may be a lack of co-ordination, proper control

etc. The system is inflexible.

(4) GROUP BANKING :

It is similar to Chain Banking, the difference being that under Group

Banking two or more banks are brought under the control of the same

management through a Holding Company. Both the systems aim at gaining

the advantages of large scale operations. The banks are able to pool their

resources in case of emergency or when large amount of cash is required to

meet the loan requirements of the customer. The advantages and

disadvantages of both the systems are similar. Both the systems developed in

the United State of America as a result of attempts to overcome the

difficulties or limitations of unit banking.


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(5) CORRESPONDENT BANKING:

Under Correspondent banking, small banks serving local communities hold

deposits with joint banks serving in big cities. This kind of banking is

prevalent in U.S.A. The correspondent banks perform two important

services of outstation cheque clearing and loan participation for the

respondent banks while they benefit for the deposit funds of respondent

banks.


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A) COMMERCIAL BANKS


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PRIMARY FUNCTIONS :

1) Accepting of Deposits : A bank accepts deposits from the public.

People can deposit their cash balances in either of the following accounts to

their convenience:-

a. Fixed or Time Deposit Account : Cash is deposited in this

account for a fixed period. The depositor gets receipts for the amount

deposited. It is called Fixed Deposit Receipt. The receipt indicates the name

of the depositor, amount of deposit, rate of interest and the period of deposit.

This receipt is not transferable. If the depositor stands in need of the amount

before the expiry of fixed period, he can withdraw the same after paying the

discount to the bank.

b. Savings Account : This type of deposit suits to those who just

want to keep their small savings in a bank and might need to withdraw them

occasionally. Banks provide a certain rate of interest on the minimum balance

kept by the depositor during the month.

c. Current Account : This type of account is kept by the

businessman who are required to withdraw money every new and then.

Banks do not pay any interest on this account. Any sum or any number of

withdrawals can be presented by such an account holder.

2) Advancing of Loans : The bank advances money in any one of the

following ways.

a. Overdraft Facilities : Customers of good trading are allowed to

overdraw from their current account. But they have to pay interest


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on extra amount they have withdrawn. Overdrafts are allowed to

provide temporary accommodation since the extra amount

withdrawn is payable within a short period.

b. Money at Call : It is the money lent for a very short period varying

from 1 to 14 days. Such advances are usually made to other banks

and financial institutions only. Money at call ensures liquidity. In

the Interbank market it enables bank to make adjustment according

to their liquidity requirements.

c. Loans : Loans are granted by the banks on securities which can be

easily disposed off in the market. When the bank has satisfied itself

regarding the soundness of the party, a loan is advanced.

d. Cash Credit : The Debtor is allowed to withdraw a certain amount

on a given security. The debtor withdraws the amount within this

limit, interest is charged by the bank on the amount actually

withdrawn.

e. Discounting Bill of Exchange : It is another method of making

advances by the banks. Under this method, bank give advance to

their clients on the basis of their bills of exchange before the

maturity of such bills.

f. Investment in Government Securities : Purchasing of government

securities by the banks tantamount to advancing loans by them to

the Government. Banks prefer to buy government securities as

these are considered to be the safest investment. For example :

Indira Vikas Patra : It enables the banks to meet requirement of

statutory liquidity ratio (SLR)

3) Credit Creation :One of the main functions of banks these days is to

create credit. Banks create credit by giving more loans than their cash


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reserves. Banks are able to create credit because the demand deposits i.e. a

claim against the bank is accepted by the public in settlement of their debts.

In this process the bank creates money. For this reason Prof. Sayers has

called bank the manufactures of money.

4) Cheque system of Payment of Funds

A cheque, a negotiable instrument, which in fact is a bill of exchange, drawn

upon a banker, is the most popular credit instrument used by the client to

make payments. Cheque system is the main credit instrument in the banking

world.

Although a cheque is not a legal tender money, the serves as a medium of

exchange in a limited way as it is a negotiable instrument.

Because of clearing houses and clearing operations of the banks, cheques

can be and are used for transferring funds from one centre to another. In the

modern days they can also be used for transferring funds from one country to

another.

SECONDARY FUNCTIONS

Besides the above primary functions, banks also perform may secondary

functions such as agency functions, general utility and social functions.

A) Agency Functions

Banks act as agents to their customers in different ways :-


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i) Collection and Payment of Credit and Other Instruments: The Commercial

banks collect and pay cheques, bills of exchange, promissory notes, hundies,

rent, interest etc. On behalf of their customers and also make payments of

income tax, fees, insurance premium etc. on behalf of the customers.

Customers can leave standing instructions with the banker for various

periodic payments ensuring the regular payments and avoiding the trouble of

performing it themselves.

ii) Purchase and Sale of Securities : The modern commercial banks also

undertake the purchase and sale of various securities like shares, stocks,

bonds units and debentures etc. On behalf of the customers, banks do not

give any advice regarding the suitability or otherwise of a security but simply

perform the functions of a broker.

iii) Trustee and Executor : Banks also acts as trustees and executors of the

property of their customers on their advice. Sometimes banks also undertake

income tax services on behalf of the customers.

iv)Remittance of Funds : The Commercial banks remit funds on behalf of

clients from one place to another through cheques, drafts, mail transfers etc.

v) Representation and Correspondence : Sometimes commercial banks acts

as representatives or correspondents of the clients especially in handling

various applications. For instance, passports and travel tickets, booking of

vehicles, plots etc.

vi) Billion Trading : In many countries, the commercial banks trade is

billions like gold and silver. In Oct 1997, 8 banks including SBI, IOB,

Canara Bank and Allahabad Bank have been allowed import of gold which

has been put under open general licensed category.

vii) Purchase and Sale of Foreign Exchange : Banks buy and sell foreign

exchange, promoting international trade. This function is mainly discharged

by foreign Exchange Banks.


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viii) Letter of References : Banks also give information about economic

position of their customers to domestic and foreign traders and vice versa.

B) GENERAL UTILITY SERVICES

In addition to agency services, banks render many more utility services to the

public. These services are :-

i) Locker Facilities : Banks provide locker facilities to their

customers. People can keep their valuables or important documents in these

lockers. Their annual rent is very nominal.

ii) Acting as a referee : It desired by the customers, the bank can be a

referee i.e. who could be referred by the third parties for seeking information

regarding the financial position of the customers. The bank will acts as

referee only and only if it is desired by the customer, otherwise the secrecy of

a customers is account is maintained very carefully.

iii) Issuing letters of credit : Bankers in a way by issuing letters of

credit certify the credit worthiness of the customers. Letters of credit are very

popular in foreign trade.

iv) Acting as Underwriters : Banks also underwrite the securities issued

by the Government and Corporate bodies for a commission. The name of

bank as an underwriter encouraged investors to have faith in the security.

v) Acting as information banks : Commercial banks also acts as

information bureau as they collect the financial, economic and statistical

data relating to industry, trade and commerce. HDFC Bank is providing

information relating to NRI Schemes and commentaries of experts on

development in the areas of finance through Internet.

vi) Issuing Travelers cheques and credit cards : Banks have been

rendering great service by issuing travelers cheques, which enable a person

to travel without fear of theft or loss of money. Now, some banks have


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started credit card system under which a credit card holder is allowed to avail

credit from the listed outlets without any additional cost or effort. Thus,

credit card holder need not carry or handle cash all the time. Now,

international credit cards are joining hands with Indian Banks.

vii) Issuing of gift cheques: Certain banks issue gift cheques of various

denominations, e.g. Some Indian banks issue gift cheques f the

denominations of Rs. 21, 31, 51 and 101 etc. They are generally issued free

of charge.

viii) Dealing in Foreign Exchange: Major branches of commercial banks

also transact business of foreign exchange. Commercial banks are the main

authorized dealers of foreign exchange in India.

ix) Merchant banking Services: Commercial banks also render

merchant banking services to the customers. They help in availing loans from

non-banking financial institutions.

x) Help in Transportation of Goods: Big businessmen or industrialists

after consigning goods to their retailers send the Railway Receipt

(Consignment Note) to the bank.

List of Public Sector Banks in Mathura:-

o State Bank of Indiao Punjab National Banko Indian Overseas Banko Canara Banko Oriental Bank of Commerceo Syndicate Banko Bank of India


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List of Private Sector Bank in Mathura:-

City Union Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank UTI Bank
http://finance.indiamart.com/investment_in_india/city_union_bank.htmlhttp://finance.indiamart.com/investment_in_india/federal_bank.htmlhttp://finance.indiamart.com/investment_in_india/hdfc_bank.htmlhttp://finance.indiamart.com/investment_in_india/icici_bank.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/indusind_bank.htmlhttp://finance.indiamart.com/investment_in_india/ing_vysya_bank.htmlhttp://finance.indiamart.com/investment_in_india/uti_bank.htmlhttp://finance.indiamart.com/investment_in_india/federal_bank.htmlhttp://finance.indiamart.com/investment_in_india/hdfc_bank.htmlhttp://finance.indiamart.com/investment_in_india/icici_bank.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/indusind_bank.htmlhttp://finance.indiamart.com/investment_in_india/ing_vysya_bank.htmlhttp://finance.indiamart.com/investment_in_india/uti_bank.htmlhttp://finance.indiamart.com/investment_in_india/city_union_bank.html


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Objectives of the StudyThis study has been conducted with a variety of important

objectives in mind. The following provides us with the chief

objectives that have tried to achieve through the study. The extent

to which these objectives have been met could judged from the

conclusions and suggestions, which appear in the later of thisstudy.

The Chief Objectives of this study are:1.To find the bank sector that is largely availed by the customer.

2.To study the factors influencing the choice of a bank for availing

services.

4.To find and compare the satisfaction level of customers in public sector

5.as well as in private sectors bank.

6.To study the problem faced by customer.

7.To get suggestions for improvement or change in the services of public

and private sector banks.

8.To study what do people expect in the new era of banking.


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RESEARCH METHODOLOGY

Research is an art of scientific investigation. In other word research is a

scientific and systematic search for pertinent information on a specific topic.

The logic behind taking research methodology into consideration is that one

can have knowledge about the method and procedure adopted for

achievement of objectives of the project. With the adoption of this others can

evaluate the results also. Its main aim is to keep the researchers on the right

track.

The methodology adopted for studying the objectives was surveying thesaving account holders of District Jalandhar. So keeping in view the nature

of requirements of the study to collect all the relevant information regarding

the comparison of saving account of Centurion Bank of Punjab with other

banks, direct personal interview method with structured questionnaire was

adopted for the collection of primary data.

Secondary data has been collected through the various magazines and

newspapers and by surfing on Internet. And the guide in the organization

was consulted at many times.

SAMPLE DESIGN:-A sample design is a definite plan for obtaining a

sample from a given population. It refers to the techniques or the procedure

the researcher would adopt in selecting items for the sample. Sample design

may as well lay down the number of items to be included in the sample i.e.,

the size of the sample. Sample design is determined before data are

collected. Here we select the population as sample in our sample design. The

selected respondents should be as representatives of the total population.


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POPULATION:- The persons holding saving account related to business

class of District Jalandhar were taken into consideration.

DATA COLLECTION

Data was collected by using main two methods i.e primary data and

secondary data.

PRIMARY DATA

Primary data is the data which is used or collected for first time and it is not

used by anyone in the past. There are number of sources of primary data

from which the information can be collected. We choose the following

resources for our research.

QUESTIONNAIRE:-This method of data collection is quite popular,

particular in case of big enquiries. Here in our research we set 15 simple

questions and request the respondents to answer these questions with correct

information.

RESPONDENTS:-Respondents helps in creation of more accurate idea

about our research. We personally meet the respondents inside and outside

the banks.


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SECONDARY DATA

Secondary data is the data which is available in readymade form and which

is already used by people for some purposes. There may be various sources

of secondary data such as-newspapers, magazines, journals, books, reports,

documents and other published information.

BANKS ANNUAL REPORTS:-Banks issues there annual reports to get

the people informed with the profitability and growth of the bank. These

annual reports helps us a lot to get the latest data and other related

information for our research. It tells us about the increase or decrease in

profits and other facilities.

JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS :- We

also take into consideration the journals and publications issued by the bank

at different times. we comes to know about the Branches, ATM, locations

and other useful information.

MANUALS AND BROACHERS OF DIFFERENT BANKS:-We take

the help of bank staff and other people who gives us deep information and

data which may not be available at anywhere. They gives us there full co-

operation.

INTERNET:-We also take into consideration the internet facility with

which we collect lot of latest information.


34/70

SAMPLE PLAN :

SAMPLE SIZE: Keeping in mind all the constraints the size of the

sample of the study was selected as 50.

SAMPLING UNIT:-

Centurion Bank of Punjab Branch in Jalandhar city. Due to nature of

study, we also visited various different banks ICICI, HDFC, SBI,

PUNJAB NATIONAL BANK etc. of Jalandhar District.

SAMPLING TECHNIQUE:- Random sampling.

. Research was conducted on clear assumptions that the respondentswould give frank and fair answers in a pragmatic way and without any

bias.

SAMPLING DESCRIPTION:- In order to understand the nature

and characteristics of various respondents in this study, information

was collected and analyzed according to their socio economic

background which included the characteristic of their respondents like

education, age marital status and monthly income. This description

shows that respondents included in this survey belong to different

backgrounds & this turn increase the scope of the study.


35/70

PERSONAL DETAIL

AGE

Particulars %age of Respondent

20-30 years 20%30-40 years 50%40-50 years 20%50-60 years 10%

Analysis & Interpretation: From the above study we find that nobody is below20 age and 20% respondents are between 20-30 age group, 50% respondents are between

30-40 age group, 20% respondents is between 40-50 age group and 10% respondents arebetween 50-60 age group.

SEX


36/70

Particulars No of Respondent %age

Male 70 70%

Female 30 30%

Total 100 100%

Analysis:

From the above result we come to know that out of 100, 62 respondents are

male and 38 are female which is 62% and 38% are respectively.Interpretation: From the above data we conclude that most of our

respondents are male.

MARITAL STATUS

Particulars No of %age


37/70

RespondentMarried 33 33%Unmarried 67 67%

Total 100 100%

Analysis:

From the above study we find that out of 100%, 33% respondents are

married and 67% respondents are unmarried.

Interpretation: Most of the respondents of our survey are Unmarried.

Q4: HIGHEST EDUCATIONAL QUALIFICATION:-

Particulars No of Respondent % ageMatric 4 4%Senior Secondary 14 14%


38/70

Graduate

&professional

46 46%

Post graduate 36 36%Total 100 100%

Analysis: This analysis shows that out of 100 respondent, 46% respondents are graduate

& professional, 36% respondents are post graduate, 14% respondents are senior

secondary and 2% respondents are of Matric category. All the respondents of our surveyare qualified.

Interpretation: From the above data we conclude that most of our respondents are

Graduates & professional degree holders.

OCCUPATION

Particulars No of

Respondent

%age ofrespondents

Businessman 32 32%Government 28 28%


39/70

EmployeeStudent 24 24%Others 16 16%

Analysis: From the above analysis it is clear that 32% respondents are doing

their own business, 28% are employees and 16% respondents belong to

other category And 24% of our respondents are students. Most of the

respondents of our survey are Businessmen.Interpretation: From the Above data we conclude that most of our survey

respondents are businessmen.

32%

28%

24%

16%

Occupation

Businessmen Government Employee Students Others


40/70

DATA COLLECTION: Data was collected using two main methods:

COLLECTION OF DATA

Secondary Data Primary Data

Banks Annual Reports

Journals and Publications of

Different banks

Manuals/Broachers of

Different Bank

Questionnaire

Respondents

Economics tim

and financial


41/70

LIMITATIONS OF THE STUDY

Due to constraints of time and resources, the study is likely to suffer from

certain limitations. Some of these are mentioned here under so that the

findings of the study may be understood in a proper perspective.

The limitations of the study are:

Some of the respondents of the survey were unwilling to share

information.

The research was carried out in a short period of 6 weeks . Therefore

the sample size and other parameters were selected accordingly

so as to finish the work within the given time frame.

The information given by the respondents might be biased because

some of them might not be interested to give correct information.

The officials of the bank supported me a lot, but did not have

sufficient time to make the points more clear.


42/70

Banks - PrivateSector

Net Profit as per the latestProfit & Loss Accountavailable.(2010-2011)

Company

Name

Last

Price Change

%

Change

Net

Profit(Rs. cr)StanChart IDR 113.95 0.00 0.00 15,948.10

ICICI Bank 1,101.30 -26.75 -2.37 4,024.98

HDFC Bank 2,360.20 -11.85 -0.50 2,948.70

Axis Bank 1,427.35 -12.05 -0.84 2,514.53

Kotak

Mahindra451.50 -3.95 -0.87 561.11

JK Bank 838.80 -6.10 -0.72 512.38

YES BANK 330.15 -3.25 -0.97 477.74

Federal Bank 445.30 11.90 2.75 464.55

IndusInd Bank 279.70 -0.45 -0.16 350.31

Karur Vysya 421.45 -0.45 -0.11 336.03

ING Vysya

Bank333.25 -9.15 -2.67 242.22

South Ind Bk 23.00 -0.25 -1.08 233.76

Karnataka

Bank 120.20 0.00 0.00 167.12City Union

Bank47.50 -1.45 -2.96 152.76

Lakshmi Vilas 112.80 1.55 1.39 30.67

Dhanlaxmi

Bank124.85 3.45 2.84 23.30
http://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=chg&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/standardcharteredplc/SCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/icicibank/ICI02http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/jammukashmirbank/JKBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/yesbank/YBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/federalbank/FBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karurvysyabank/KVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/southindianbank/SIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karnatakabank/KB04http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karnatakabank/KB04http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/cityunionbank/CUBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/cityunionbank/CUBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/lakshmivilasbank/LVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/dhanlaxmibank/DB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/dhanlaxmibank/DB01http://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=chg&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Private%20Sectorhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/standardcharteredplc/SCB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/icicibank/ICI02http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/hdfcbank/HDF01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/kotakmahindrabank/KMBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/jammukashmirbank/JKBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/yesbank/YBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/federalbank/FBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/indusindbank/IIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karurvysyabank/KVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/ingvysyabank/INGhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/southindianbank/SIBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karnatakabank/KB04http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/karnatakabank/KB04http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/cityunionbank/CUBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/cityunionbank/CUBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/lakshmivilasbank/LVBhttp://www.moneycontrol.com/india/stockpricequote/banksprivatesector/dhanlaxmibank/DB01http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/dhanlaxmibank/DB01


43/70

Banks - Public Sector

Net Profit as per the latest Profit& Loss Account available.(2010-2011)

Company

Name

Last

Price Change

%

Change

Net

Profit

(Rs. cr)SBI 2,803.30 -16.10 -0.57 9,166.05

PNB 1,187.80 -8.95 -0.75 3,905.36

Bank of

Baroda983.45 9.25 0.95 3,058.33

Canara Bank 651.20 10.65 1.66 3,021.43Union Bank 342.30 -1.15 -0.33 2,074.92

Bank of India 486.55 -0.45 -0.09 1,741.07

Indian Bank 233.15 -2.50 -1.06 1,554.99

Allahabad

Bank222.40 -2.85 -1.27 1,206.33

Oriental Bank 373.85 -4.75 -1.25 1,134.68

Corporation

Ban626.75 3.40 0.55 1,072.68

Central Bank 144.10 -1.00 -0.69 1,058.23

Andhra Bank 148.15 -1.00 -0.67 1,045.85

IDBI Bank 147.40 -0.55 -0.37 1,031.13

UCO Bank 119.80 3.45 2.97 1,012.19

Syndicate Bank 125.65 0.70 0.56 813.32

IOB 154.90 -0.85 -0.55 706.96
http://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=chg&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankindia/SBIhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/punjabnationalbank/PNB05http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankofbaroda/BOBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankofbaroda/BOBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/canarabank/CB06http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/unionbankindia/UBI01http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankofindia/BOIhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/indianbank/IB04http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/allahabadbank/AB15http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/allahabadbank/AB15http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/orientalbankcommerce/OBChttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/corporationbank/CBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/corporationbank/CBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/centralbankindia/CBO01http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/andhrabank/AB14http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/idbibank/IDB05http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/ucobank/UCOhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/syndicatebank/SB9http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/indianoverseasbank/IOBhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=sc_comp&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=chg&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=perchg&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/stocks/marketinfo/netprofit.php?optex=BSE&opttopic=&group=All&sort=net_profit&order=&indcode=Banks%20-%20Public%20Sectorhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankindia/SBIhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/punjabnationalbank/PNB05http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankofbaroda/BOBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankofbaroda/BOBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/canarabank/CB06http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/unionbankindia/UBI01http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankofindia/BOIhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/indianbank/IB04http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/allahabadbank/AB15http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/allahabadbank/AB15http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/orientalbankcommerce/OBChttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/corporationbank/CBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/corporationbank/CBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/centralbankindia/CBO01http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/andhrabank/AB14http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/idbibank/IDB05http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/ucobank/UCOhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/syndicatebank/SB9http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/indianoverseasbank/IOB


44/70

State Bnk Tr 755.80 -3.00 -0.40 684.27

Dena Bank 109.70 0.70 0.64 511.25

Vijaya Bank 89.55 0.15 0.17 483.30

State B

Bikaner555.30 9.75 1.79 455.16

State Bnk My 689.00 -10.80 -1.54 445.77Bank of Mah 62.95 -0.75 -1.18 439.66

United Bank 108.25 0.95 0.89 322.36
http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebanktravancore/SBThttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/denabank/DBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/vijayabank/VB03http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankbikanerjaipur/SBB02http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankbikanerjaipur/SBB02http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankmysore/SBMhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankmaharashtra/BM05http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/unitedbankindia/UBOhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebanktravancore/SBThttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/denabank/DBhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/vijayabank/VB03http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankbikanerjaipur/SBB02http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankbikanerjaipur/SBB02http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/statebankmysore/SBMhttp://www.moneycontrol.com/india/stockpricequote/bankspublicsector/bankmaharashtra/BM05http://www.moneycontrol.com/india/stockpricequote/bankspublicsector/unitedbankindia/UBO


45/70


46/70

Analysis of Data collected

1. The respondents were asked about

which banking sectors services do their avail.

Table1: banking sectors services which therespondents avail.

Graph 1: Banking Sectors services which the respondents avails

Banking sector Number of respondents

Public 35

Private 15

Both 30

0

5

10

15

20

25

30

35

40

No of respondents

Public

Private

Both


47/70

INTERTRETATION:-It was found that most of the respondents were availing

services of private sectors banks while those of the public sector banks

were less as compare to public sector

2. The respondents were Asked about the

type of account they have in the public sector as well as

Private sector banks

Table 2.1 Number of type of account held in Public sectors banks

Type of Accounts

Name ofAccount Savings Current Demat Fixeddeposits Salary

Total no ofrespondents

50 15 6 15 14

0

10

20

30

40

50

60

Saving Current Demat Fixeddeposits

Salary

Total no of respondents

Total no of respondents

Graph 2.1 :-Number of type of accounts held in Public sector banksAnalysis: 50% people own Saving Account, 15% own Current account,

6% demat,15% fixed deposits account and 14% salary Account


48/70

Interpretation: It was found that in case of public sector banks,maximum number of account holders owns Saving Account. After

Saving account most prefer account is salary account prefer by people

and the next priority goes to fixed deposits Accounts.

3. The basic purpose of this question was to know the most preferred

bank.

Table 3. Number of respondents preferring different banks

Table 1

Names of Banks Number of respondents

ICICI Bank 20

HDFC Bank 18

State Bank of India 25

Punjab National Bank 16

Others 21

0

5

10

15

20

25

30

Number of respond

ICICI ban

HDFC Ban

State Bank Gro

P.N.B

Punjab and sind B


49/70

Analysis: From above graph, it is seen that 28% stake of the respondents

follows to Punjab National bank followed byICICI bank. It is the bank

which provide 12-hour banking.also the ATM machine is more as compared

to the other private sector banks.

Interpretation : From the above graph, it is seen that Punjab national is the

most preferred bank as compared to other Public and Private sector Banks.The reason for preference of public sector bank is the minimum amount of

deposit for saving account.

4. The aim to ask this question was to know he reasons for their

preference in different banks :-

Table 4:- Reason for account in different banks

Reasons No of respondents

Friendly Behaviour of the Staff 16

Reliability/trust 14

Quick and fast services 55

Location 15

Graph 4:-Reasons for account in different banks

0

10

20

30

40

50

60

No of respondents

Chart Title Friendly behaviour of thestaffReliability/ Trust

Quick and fast services


50/70

Inpretation: By analyzing this graph, we can conclude that most of the

people is influenced by the quick and speedy services provided by the bank

and location is given less preference than others.

5.The respondents were asked about the facilities they were availing inpublic as well as private sector banks :-

Table 5.1 Number of people availing different facilities at public sector

banks:

Facilities Availed No of respondents

ATM/Debit card 60

Demat 5

Internet/Mobile/Phone Banking 15

Insurance 20

Graph 5.1: Number of people availing different facilities at public sectorbanks

Interpretation: From the above graph, it was found that was availed by most

of the people at public sector banks was that of ATM/Debit cards which hold

90% of respondents. It is clearly observed by the graph that Insurance are

neck to neck holding 20% of respondent each.


51/70

6. The purpose of this question is to know the satisfaction level they were

having with their banks overall performance:-

Public sector banks

Table 6.1 Satisfaction level of the customers regarding the facilities

availed from the public sector banks

Level of Satisfaction No.of respondents %age

Excellent 12 24%

Good 21 42%

Very Good 27 54%

Graph 6.1 Satisfaction level of Customers regarding the facilities availed

from the public sector banks.

Analysis:

It was found that in case of public sectors banks, 18% of the respondents were

highly satisfied ranked excellent from the products and services availed by

them. 44% were just satisfied given very good and 38% have moderate view.

24%

42%

54%

0%

10%

20%

30%

40%

50%

60%

Excellent Good Very Good

Series 1


52/70

Interpretation: People have mixed type of view regarding public sector

banks.

7. The respondents were asked that if they have given option, would they

like to shift from the present banks:-

Table 7 Number of customers ready to shift from present bank.

Graph 7:- Number of customers ready to shift from their present bank

or not.

Interpretation:

From this above Graph, we can conclude that the number of respondents

ready to shift from their present bank is 28% while 70% customers seems to

be satisfied from their bank and hence willing to shift from their present bank

to other.


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8. The aim to ask this question was to know whether the respondents

faces any problem regarding the services provided them by their

preferred bank :-

Table 8 Problem faced by customers.

Types of problem No of respondents

Time consuming 10

Introduction 8

Reference 15

Too many formalities 6

No facility of photograph instantly 4

No problem 6

Interpretation:

It was found that most of the respondents are facing problem of reference.

Respondents also find that the time and too much formalities also cause

problem in banks.


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Comparative Position of Government Sector

Banks (Rs mn)

SBI BoB Corp OBC BoI SBBJ SBT Dena

Income 257702 58616 18751 26793 55224 13359 13541 17990

Net Profit 20515 5027 2324 2786 1728 1204 664 628

Net Worth 121472 32345 11447 14284 25110 5231 4336 8264

Deposits 1968210 513081 142800 220952 477438 90740 101826 132866

Advances 981019 243929 77770 93255 252310 44011 51312 71178

Investments 918786 185565 59620 115595 166657 48454 48715 69152

Spread (%) 2.05 2075 2.23 3.03 2.26 2 1.18 1.93

NPAs / Net

Worth (%)51.7 52.1 13 23.5 87.8 86.6 104.1 119

RONW 16.9 15.5 20.3 19.5 6.9 23.0 15.3 7.6

CAR 11.5 12.1 12.8 12.7 10.5 12.3 11.1 11.6

SBI-State Bank of India, BoB-Bank of Baroda, Corp-

Corporation Bank, OBC-Oriental Bank of Commerce,

BoI-Bank of India, SBBJ-State Bank of

Bikaner&Jaipur, SBT-State Bank Travancore, Dena-

Dena Bank

Comparative position of private sector

banks (Rs mn)


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HDFC ICICI UTI IDBI GTB INBK BoP CENK

Income 8052 10468 5743 4789 8791 7822 3090 5315

Net Profit 1200 1053 509 609 1086 560 331 343

Net Worth 7514 11495 2395 2595 5281 5332 1669 2102

Deposits 84277 98660 57200 34481 61988 65459 26077 38670

Advances 33622 36573 35066 16007 32110 36770 13014 18398

Investments 57482 44166 20651 21239 29290 27317 12972 21995

Spread (%) 3.6 1.4 1.4 1.8 2.1 1.6 2.6 2.6

NPAs / Net

worth (%)4.9 4.8 68.9 12 5.3 41.2 27.6 33.9

RONW (%) 16.0 9.2 21.3 23.5 20.6 10.5 19.8 16.3

CAR (%) 12.2 19.6 11.3 11.8 13.6 13.2 9.8 9.3

HDFC Bank, ICICI Bank UTI Bank, IDBI Bank, GTB-

Global Trust Bank, INBK-IndusInd Bank, BoP-Bank of

Punjab, CENK-Centurion Bank


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FINDINGS OF THE STUDY

More number of people have account with private banks.

Majority of the respondents whether in public sectors or in private

sector banks have savings account with banks.

Number of problem faced by the people is more in public sector

banks.


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People want a change in the behavior of the staff of the public sector

banks.

People are more satisfied form the private sector banks due to their

better services provided by them in terms of speedy transactions, fully

computerized facilities, more working hours (in case of ICICI bank,

the number of working hour are 12), good investment Advisory

services, efficient and co-operative staff, better approach to Customer

Relationship Management.

In private sector banks proper promotional activities should be taken

up so as to make the population aware of the services provided by the

banks even in rural areas. The facility that was availed by most of the people at public sector

banks was that of ATM/Debit cards. The least availed facility was that

of Demat account and foreign transfer of funds.

The facility that was availed by most of the people at private sector

banks was that of Internet/Phone banking by ATM/Debit card.

Majority of respondents do not want to shift from their present bank.

From the above study it is clear that private banks are providing better

services than nationalized banks. 95% respondents favored that

private banks are providing better services than nationalized bankswhile 5% respondents are not agree with it.

From the above study it is clear that majority of the respondents said

that the average balance requirement for operating their saving

account is between 5000-10000. 20% said it is between 10000-20000


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and remaining 5% said it is between 20000-50000 in private sector

banks which as compared to Public sector bank is very high.

40% respondents said that the bank employees never pay any attention

to them and 10% respondents said that their problems are not solved

by bank executives. The remaining 50% respondents give a positive

reaction in the favour of bank. 30% respondents favoured that their

problems are solved by bank executives and 20% respondents said

they are received with smile by bank executives. So there is a mix

response.

Majority of the respondents said that the average time taken for

transactions is between 25 to 50 minutes in their bank. 30%

respondents said the average time taken for transaction is between 20-

25 minutes, 20% said it is between 10 to 25 min. and remaining 10%

said that the average time taken for transaction by their bank is 5 to 10

minutes.

From the above study is clear that the banks do not organize any

customer meets. All the 100% respondents said that their bank does

not organize any customer's meets to resolve their problems.

Customer satisfaction is the demand of time, so the banks should

organize customer meets to resolve the problems of their customers.

From the above study it is clear that majority of the respondents are

ready to pay nominal charges for better services provided by private


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banks while 40% respondents are not ready to pay any nominal

charges.

The above study depicts that 60% respondent said that their bank

updates them time to time about the latest facilities and remaining

40% said that their bank doesn't update them.


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SUGGESTIONS

Based on the study conducted, There are some of the suggestions given by

the customers of how the modern banking should be. These are the commentgiven by them about the improvement of the banking sector in India.

Banks should obey the RBI norms and provide facilitiesas per the

norms, which are not being followed by the banks. While the

customer must be given prompt services and the bank officer should

not have any fear on mind to provide the facilities as per RBI norms to

the units going sick.

Banks should increase the rate of saving account

Banks should provide loan at the lower interest rate and education

loans should be given with ease without much documentation. All the

banks must provide loans against shares.

Fair dealing with the customers. More contribution from the employee

of the bank. The staff Should be co-operative, friendly and must be

capable of understanding the problems of customers

Internet banking facility must be made available in all the banks.

Prompt dealing with permanent customers and speedy transaction

without harassing the customers

More ATM coverage should be provided for the convenience of the

customers.


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The bank should bring out new schemes at time-to-time so that more

people can be attracted. Even some gifts and prizes may be offered to

the customers for their retention.

24 hours banking should be induced so as to facilitate the customers

who may not have a free time in the daytime. It will help in facing the

competition more effectively.

The charges for saving account opening are high, so they should also

be reduced. Especially in private sector.

Customers generally complain that full knowledge is not granted to

them. Thus the bank should properly disclose the features of the

product and services to the customers. Moreover door to door servicescan also be introduced by bank.

The need of the customer should properly be understood so that

customer feels satisfied. The relationship value should be maintained.

Banking sector is improving by leaps but still it needs to be improved.

Proper and efficient relationship staffs having knowledge for one stop

banking, customer friendly atmosphere, and better rate of interest are

need of the hour.the concept of privatization has overall improved the

services in all the banks. Home banking will be order of the day.


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Recommendations

For Public Sector Banks:

Bank staff should be customer friendly and highly motivated

to serve the normal customer.

As far as possible, banks should reduce its documentation

process while providing loans.

Computerization should be done in banks at all level and the

operators should de properly trained.

Proper ambience in the banks can develop a healthy

working culture.

Quick services should be provided.

For Private sector Banks

24 hours banking should be induced so as to facilitate thecustomers who may not have free time in the day time. It will

help in facing the competition more effectively.

More ATM coverage should be provided for the

convenience of the customers.

Customer care services should be provided by banks.


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CONCLUSION

The customers now days are not only exposed of what type of service is

being provided by banks in India but in the world as a whole. They expect

much more than what is actually being provided. So the new comingbanking sector has to provide and cater to all the needs of the customers

otherwise it is difficult to survive in the competition coming up.

They not only expect the safety of money but also best ways to invest that

money which need needs to be fulfilled. Banks need to have a better outlook

towards to actually what customers are requiring. Entries of the private

sector banks have made the competition tougher. If a bank is not functioning

properly it is being closed. So it is difficult to face these types of conditions.

Here a simple philosophy can work that customers are God and we need to

follow this to survive and serve better.

The banking sector is poised for explosive growth. In this, scenario, it is

imperative that banks adopt technology at an aggressive Pace, if they wish to

remain competitive. Mani Mamallan makes a case for banks to outsourcetheir technology infrastructure requirement, thus enabling early adoption and

increased efficiencies.

In the prevailing scenario, a number of banks have adopt a new deployment

strategy of infrastructure outsourcing, to lower the cost of service channels.

As a result, other banks too will need to align their reinvented business

models. The required changes at both the business and technology levels are

enormous. In a highly competitive banking markets, early adopters are

profiting from increased efficiencies.


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BIBLIOGRAPHY

BOOKS:

Kothari C.R. (1990) Research Methodology: Method and

Techniques; Wishva Prakashan, New Delhi.

Bodie.Z, Kane.A & Mracus.J : Essentials of Investments.

Prof. E Gordon & Dr. K. Natrajan Banking Theory Law and

Practice.

Indian financial System & Commercial Banking by Khan

Masood Ahmed

Banking in India by P.N.Varshney

WEBSITES:

www.centurionbop.co.in

www.pnbindia.com

www.statebankofindia.com

www.icicibank.com

www.rbi.org.in

www.iba.org.in

www.knowledgestom.com

www.igniter.com

BROACHERS & PAMPHLETS

Broachers and pamphlets of Saving A/c


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QUESTIONNAIRE

PERSONAL DETAILS.

NAME-

AGE a)20-25 b) 26-30 c) 31-45 d) above 45

GENDER-..

EDUCATION-...

Q1. Which Sector bank do you have your account?

Public Private Both

Q2. In which bank do you have your Account?

1.

2.

3.

4.

Q3. Which type of account do you have in the bank?

Saving Current

Demat F.D

Salary

Q4 In Case you have yours Account in more than one a Bank which one is your mostpreferred bank (Give only one bank)

Q5. Rank the selection criteria for opening account with bank?


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Brand Image Services

Location Charges

Q6. Kindly rank the reasons for yours preference in this particular bank?

Quick and fast services Location

Friendly Behavior Reliability

Q7. Which facilities are you availing at your bank?

Atm/Debit card Credit card

Insurance Mobile Banking

Q8.How often do you use debit card to shop?

Occasionally Never

Q9. How much Satisfied are you with your banks overall performance ?

Excellent Very Good

Good

Q10. Any Specific services you expect from your bank ?

Q12. Do you face any problem regarding the services provided by your preferred

bank?

If Yes

Q13. Would you like to give any suggestions for the better functioning of banks

in these sectors?

Public Sector

Private sector


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15. If an option is given to you, would you like to shift from the present

Bank? Yes No

16. Any other suggestions please specify ?

____________________________________________________________

____________________________________________________________

Thanks for your valuable time given to us .We assure you that the information provided

by you will remain confidential. Thanks for your co-operation.

35847069 comparative study of the public sector amp private sector bank(2)

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