R.S. CONTENTS S.No. CONTENTS Declaration Certificate of Institue Acknowledgement Preface Introduction 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

. Introduction of Topic Page No.

1.

Banks Profiles Review of Literature Conceptualization Objectives of study Research Methodology Limitations of study Data analysis and Interpretation Findings Suggestions Conclusion Bibliography Annexure Questionnaire

INTRODUCTION Of TOPIC

INTRODUCTION

Banking, the business provided many innovative financial services to meet the varied requirements of both corporate and consumers. Financial services tailored to meet the specific requirements of customers. The basic services a bank provides are collecting deposits from customers and giving them interest i.e. (saving account, time deposit and fixed deposit), lending loans to customers (with an interest), safeguarding customers valuables by means of safe deposit vaults, provide investment services like Mutual funds, provide Depository services (DEMAT Accounts, Share trading etc) and basic cash management services such as check cashing and foreign currency exchange. Four types of banks specialize in offering these basic banking services: commercial banks, savings and loan associations, savings banks, and credit unions. A bank cannot survive without performing the following non-banking activities: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. They provide funds (capital) for starting new ventures. They also offer leasing services. They facilitate the share transactions by maintaining demat accounts. Banks help their customers to make utility payments with ease. They perform merchant banking for their customers. They conduct feasibility study and submit the feasibility report. They offer credit and debit cards facility. They give hire-purchase services to owners of various goods. They are now allowed to offer insurance services. They manage mutual funds and minimize investment risks. They provide factoring services to their clients. They issue gift cheques to the people.

All types of activities which are of a financial nature could be brought under the term Financial services. In a broad sense financial services means mobilizing and allocating saving. Thus it includes all activities involved in transformation of savings and investment. It promotes savings in the country through transformation services. The financial services also known as financial intermediation. Financial intermediation is a process by which funds are move from a large number of savers and make them

available to all those who are in need particularly to corporate customers. The financial services perform the function of financial intermediation between savers and investors. Thus financial services sector is a key area and it is very important for industrial development. It promotes liquidity in the system by allocating and reallocating savings and investment into various avenues of economic activity. Infact the economic growth of the country depends upon the capital formation. The contribution of financial services to GNP has been growing on increasing year after year. It provides employment opportunities to million of the people all over the world. It provides easy conversion of financial assets into liquid cash at the discretion of the holder of such assets. Hence the term financial services industry includes all kinds of organization which intermediate and facilitate financial transactions to both individual and corporate customers. Features of Financial services 1. Consumer oriented: Financial services industry is a consumer oriented. The consumer is the king and his requirement must be fulfill should be the basic tenent of any financial services industry. 2. Intangibility: Financial services are intangible and they cannot be standardized and reproduce in the same form. Hence it is necessary to have a track record of integrity, reputation, good corporate image and timely delivery of services. 3. Simultaneous performance: Production and supply of financial services have to be performed simultaneously. For effective financial services there should be good rapport,clear cut perception and effective communication. 4. Dominance of human element: They are people intensive thus it calls for competent and skill person to deliever the quality financial services. 5. Perishability: It cannot be stored. These are immediately consumed. There is greater need for balancing demand and supply properly.

Meaning of Bank The Bank is a complex institution, involved not only in the intermediation of centralbankreserves, but also acting as an umbrella organisation for central banks and other financial authorities with a stake in the promotion of financial and monetary stability for its customers. These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts. Individuals rely on the financial services sector for chequing, insurance and other services that are part of daily living; to hold their savings and provide their credit; and for a range of other services. Businesses rely on the sector for a host of important services. The nation's efficiency, competitiveness, depth of employment opportunities and quality of life are enhanced by an effective financial services sector. Indeed, almost by definition, an effective financial services sector is the hallmark of a modern economy. History of financial services United States: Gramm-Leach Bliley Act R.S. The term financial services became more popular in United States partly due to GrammLeach Bliley Act of the late 1990s which enabled different types of companies in U.S. financial services to merge. Critics of this act say the term financial services attempt to make the unison of these operations sound natural, ignoring the history of problems which have arisen from togethering them, like conflicts of interest and monopolization. Others, noting that most of the restrictions abolished by the Gramm-Leach Bliley Act had never shown in other countries or had been abolished earlier than in US, say the term financial services is a natural one, in long term use, which means nothing more than its constituent words. In India during late seventies and eighties the financial services industry was dominated by commercial banks and other financial institution. Infact the capital market played a secondary role. The economic liberalization has brought a complete change in Indian financial services industry. After economic Liberalization, the entire financial sector has undergone a sea-saw change. The liberalization has opened the door to foriegn competitors to enter into our domestic market has led to serve competition among themselves. Deregulation in the form of elimination of exchange control and

interest rate ceilings have made the market more competitive. Innovation has become must for survival. Thus the present scenario is characterized by financial innovation and creativity. In the USA almost every company now which previously described themselves as a bank, insurance company or brokerage house now describes themselves in some way as a financial services institution. All state insurance, for example now provides CDs and investment brokerage services. Bank of America offers full featured brokerage products, while E*Trade has expanding into offering accounts and loans. Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment ban, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. Outside the US like in Japan non - financial services companies are permitted within the holding company. In this scenario, each company still looks independent and has its own customers etc. It is necessary the style of Citigroup and JP Morgan Chase. In the other style a bank would simply create its own brokerage divison or insurance divison and attempt to the sell the products to its own existing customers, with incentives For combining all things with one company. This is the style of Washington Mutual and Wells Fargo. Commercial Bank In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial banks were nationalized by Government of India. Commercial banks are established with an objective to help businessman. A commercial bank is run on commercial lines, for profits of the organization. The term commercial is used to distinguish it from an investment bank, a type of financial services entity which not only lending money directly to business but also help business raise money from other firms in form of shares and debentures. Major commercial banks include: Private banking

The term private bank is simply a marketing term for a bank or a divison of a financial services company targeted towards wealthy individuals. Often is used to describe specially lending services targeted towards this group, such as large margin loans. Investment Banks An investment bank is a financial institution that helps individuals, corporations, and governments in raising capital by underwriting and/or acting as the client's agent at the time of issue of securities. It act as an intermediary between an issuer of security and the investing public. Investment banks do not take deposits like as commercial and retail banks. An investment bank may also helps companies involved in mergers and FICC services (fixed income acquisitions and provide ancillary services such equity securities. Investment banks (capital market banks) underwrite debt and equity, assist company deals (advisory services, underwriting and advisory fees), and restructure debt into structured finance products. Bank cards Bank of America is the largest issuer of bank cards. HSBC VISA Discover card Capital One Master Card A bank card is a plastic card the following cards issued by a bank to its clients: ATM card helps the customer used for transactions at automatic teller machines

instruments, currencies, and commodities), trading of derivatives, market making and

Debit card helps the customer to linked to a bank account and used for making purchases Credit card attached to a revolving credit line Any ATM or terminal must belong to some bank, which directly or indirectly is connected with the payment system. Daily limit of the card is dependent on many factors. For example, if your spending balance is million you will not allowed to withdraw the entire amount from an ATM, but you will get a few thousand per day. But if you are VIP-client having millions in your account, say you need some more money, then after the call to the bank some of the lead managers can give the command to set the right limit for you on an individual basis, so you get the money. In this case, the bank takes the responsibility that you will pay money back to the bank later. Some safety tips for using credit cards: On receiving the PIN/ account number after a few days. Keep your PIN number safe. Every time you use your card, be aware when your card is being swiped by the cashier so as to ensure no misuse of your card takes place. After making payment with your card, make sure your credit card that the cashier has returned. Always verify your purchases with your billing statements. After using your card at an ATM, do not throw your receipt.

Investment services Asset Management

Asset management is a systematic process of operating, maintaining, upgrading, and disposing of assets cost-effectively. A common objective is to minimise the whole life cost of assets and reduce risk or ensure business continuity. Custody services Custody services is akind of back-office administration for financial services. The Custody services offer various security services such as dividend collection and distribution, provides market news and information, safekeeping and settlement, tax reclaim services, proxy, reporting, fund administration and corporate actions. Firms engaged in custody services include: PNC Financial Services Group Investors Bank and Trust The Bank of New York

Insurance related Insurance Brokerage Insurance brokerage agencies play a significant role in helping companies and individuals find property and casualty, life, and health insurance. Insurance brokerage agencies provide services beyond insurance sales, such as assisting with employee enrollment and helping to resolve benefits issues. Insurance Underwriting Insurance underwriters are employed by insurance companies to help in set of premium life insurance, health insurance, property/casualty insurance and homeowners insurance, among others. By using actuarial data to determine the payout over the life of the policy. Higher-risk individuals and assets will have to pay more in premiums to receive the same level of protection as a (perceived) lower-risk person or asset. Reinsurance

Reinsurance is insurance sold to insurers themselves, to protect them from catastrophic losses. Firms in this sector include: Berkshire Hathaway Lloyds London Munich Re Swiss Re

Intermediation or advisory services Stock brokers (private client services) and discount brokers A stockbroker or private client services or full service brokerage is a regulated professional individual, usually associated with broker dealer or brokerage firm who buys and sells shares and other securities for both institutional and retail retai clients, through a stock exchange or over the counter (finance), in return for a fee or commission. An Investment advisor is same as a stockbroker. An registered investment advisor or investment advisor having training and capabilities same like of a stockbroker manage fee-based accounts as an investment advisor. On the other hand discount broker is like the stockbroker who fulfill buy and sell orders of shares and securities at a reduced commission compared to a full-service broker, but provides no investment and personalized advice. Hence discount brokers help to trade at a smaller fee. Other low-cost brokerage include: General Electric (GE is one of the largest financial companies) Sharebuilder BUY and HOLD

Banks activities can be characterised Retail banking,

Dealing directly with individuals and small businesses, and Investment banking, relating to activities on the financial markets. most banks are profit-making, private enterprises. However, some are owned by Government, or are non-profit making.

Various electronic devices provided by banks

ATM Savings Bank

Channel ATM Bank Working capital financing

Working capital products include both fund and non-fund based products. Fund- based working capital products include cash credit, packaging credit, short term loan payable on demand, inland export bill discounting, export and impore financing and subscriptionto commercial paper. Non fund based products include documentary credit and bank guarantees. General condition for Working Capital Facility for CBG Clients Other fund-based products: MIBOR linked loans, commercial papers (CPs), FCNR- B loans, debentures and cashflow gap finance are other types of loans available to corporate. Structured Products ICICI Banks structured products can be broadly classified into Securitization and Structure Financing. Securitization Securitization involves financing of existing or future identifiable cash flows / receivables, with limited/full recourse to the company, with over-collateral of 1.5 to 3 times anda liquidity account equal to 3-6 months. The normal tenure would be between 3-7 years and the amortization would mirror the cash flow profile of the securitized receivables. Securitization results in better balancesheet management in terms of capital adequacy ratio, shifting of credit risk for non-recourse structures, liquidity support and better pricing. A brief outline of the various securitization deals and their structure, concludedby ICICI Bank are mentioned below: Structured Financing Traditionally corporate borrowing has been on the basis of strength or weakness of balancesheet, with the credit quality of borrower being the single important factor. But the late of borrowings are closely linked to the value of asset or the revenue earning capability of the asset- by means of structured finance. Structured financing involves a customized package from a lender to borrower. EPC contract Financing

Corporate are provided help to finance the gap between the inflow and outflow of contracts; and performance guarantees and advance payment guarantees given on behalf of client to the contractor / owner. Auto loan receivables A pool of identifiable receivables satisfying the criteria specified by ICICI bank are purchase by ICICI bank / Special purpose Vehicle (SPV) for a consideration net of over collateral. ICICI bank appoints the originator as the Managing and Collection (M&C) agent to collect the receivables under the contracts and deposit them in a Trust and Retention (T&R) account. The trustee makes the payments on the due date to ICICI bank from the T & R account. Export Receivables The export receivables of the company was purchased by an offshore SPV. The offshore SPV issues pass through certificates in the international capital market to raise funds for purchase of receivables. The payment under export receivables from the importers (international) are directly credited into offshore proceeds account of the company maintained in an international location. The investors receive the payment directly from the offshore proceeds account of the company. Collateralized Loan Obligation (CLOs) / Collateralized Bond Obligations (CBOs) A special purpose vehicle ( SPV) can be created which purchase the illiquid loans and /or debentures and issues securities ( CLOs/CBOs) to investors. The cashflow from the underlying assets are used to service the securities issued by SPV. The structure leverage on pooling of large number of low to medium rated assets to raise funds at higher rating rating compared to the underlying assets. The pooling gives benefits of diversification with respect to industries and creditors and hence the rating of securities can be higher than the underlying assets. Dealer Financing Dealers of large corporate can be provided finance which can be either with a limited recourse (on a first loss basis) to the corporate or based on the creditworthiness of the dealer and its relationship with manufacturer. The various structures are: bill discounting/ web based financing with or without recourse, cash credit / Demand loan facilities, financing for auto dealers with incentives for conversion into retail loans.

Investment Monetization A product designed to fulfill the need of business groups to streamline the cross-holdings within themselves. A trust would be set up which would acquire the intra- group cross holdings from the various companies in the group at the market prices. To fund this, the trust would issue Pass-through certificates (PTCs) to ICICI Bank. The take out would be a put option with the identified holding company of the group where ICICI Bank could sell the ( PTCs) to ICICI Bank. The take-out would be a put option with the identified holding company of the group where ICICI Bank could sell the PTCs to put provider at a predetermined price on affixed date. Credit Card receivables A product designed to fund clients who have a high volume of credit card receivables by discounting future card credit sales. A tight payment structure is created where in ICICI Bank covers its due by trapping the discounted proceeds directly from Acquiring Bank. Employee Housing Loan Portfolio Buyouts. The Portfolio of housing loans given by a company to its employee is taken over by the ICICI Bank with or without recourse to its employer. Due to long tenure of loans, risk view is taken based on individual employees and property rather than comfort that is derivevd from the employer. The employer is appointed as M & C Agent and ICICI BANK obtains repayment on the pool of securitized housing mortgages through direct salary deduction by the employer. Fertilizer Subsidy Receivables The transaction involves Securitization of existing receivables (due from the Government of India as subsidy to company upon sale of fertilizers by the company) and hypothecation of all receivables that would arise in future which would be assumed as sold as and when they aride. The receivables would be escrowed directly to ICICI Bank through a collection account and company would provide adequate instruction to the bankers in that regard. The company would also act as M & C ( managing and collection) agent for the transaction. Due to untimely nature of payment by the government and the requirement to increase the rating of the structure, liquidity support mechanism may be required in form of cash collateral or a stand by Letter of Credit from an acceptable Bank. Real Estate Investment Trust (REIT) / Real Estate Management Investment Companies (REMIC) structures

REIT or REMIC is a special purpose vehicle (SPV) which can be created to hold real estate assets. The SPV can be constituted in the form of a trust or a company. The SPV shall own the property and lease it to the company. The funds for the buying a property can beprovided by ICICI Bank, which can be servicedby the lease rental payments.Sometimes it isnecessary to usea structure involving two SPVs to meet the objectives of off-balance sheet treatment, stamp duty & tax efficiency and control of the property in the hands of the lessee. Trade financing (long term) This product leverages on the long- term relationships those companies have with clients or explicit off take agreements, which go a long way in reducing market risk for their products. The company can use long term funds on the basis of these strong relationship or agreements. The product can be structured as a long term loan with escrow of the receivables originating from supplies to these customers or as a securitization of these future trade receivables. Typically the quantum of these receivables would be such as to provide a margin over the debt servicing each period. The customers would need to be instructed to directly pay the money into an escrow account, which would be based for debt servicing or for payment against the future receivables securitization.

BANKS PROFILES

ICICI Bank was established in 1994 by the Industrial Credit and Investment Corporation of India, an Indian financial institution, as a wholly owned subsidiary. It is started by the combined efforts of World Bank, Government of India and Representatives of Indian Industry. The bank was initially known as the Industrial Credit and Investment Corporation of India Bank. Then changed its name to the abbreviated ICICI Bank. ICICI (Industrial Credit and Investment Corporation of India) Bank is the largest private sector bank in India in terms of market capitalization. It is also the second largest bank in India in terms of assets with a total asset of ` 3,674.19 billion (US$ 77 billion) as on June 30, 2009. ICICI Bank serves over 24 Million customers throughout the world. It is also expanding its business in the overseas market at an enviable pace. Financial services provide by ICICI Bank Deposits: Following deposits are offered:

Young Stars Savings Account Special Savings Account Fixed Deposits Advantage Deposit Recurring Deposits Tax-Saver Fixed Deposit

Child Education Plan

Loans: ICICI Bank offers following loan facilities:

Home Loans Loan Against Property Loan Against Gold Ornaments Personal Loans Car Loans Commercial Vehicle Loans Loans Against Securities

Cards ICICI Bank is India's largest issuer of credit cards. The various cards offered by ICICI bank are as below:

Corporate Cards Credit Cards Travel Cards Debit Cards Consumer Cards

Insurance ICICI Bank offers various types of insurance.

Home Insurance Health Advantage Plus Life Insurance Student Medical Insurance

Services Offered to NRIs : Following services are offered to the NRIs:

Money Transfer Loans Against FD Bank Accounts Insurance

PUNJAB NATIONAL BANK PNB is the third largest bank in India by assets. It was founded by Lala Lajpat Rai in 1894 and is currently the second largest state-owned commercial bank in India. Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act with its office in Anarkali Bazaar, Lahore. Their objective to provide banking services to the unbanked and aim to become the leading player in global banking. PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia, and Lala Harkishan Lal, Lala Lalchand, Shri Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal. It is also popular with the name of housing loan benefit because it provides short and long term loan at low rates and can be pay back in certain period. Agriculture Banking

P. N. B. Krishi Farmers Welfare Central Sector Schemes

Corporate Services

Finance for Business or Trade. EXIM finance and Gold Card Scheme Cash Management Loan backed by Future Lease Rentals

Financial services

Life Insurance Merchant Banking Mutual Fund Tax Planning Scheme International or N.R.I. services

Non-resident Deposit Schemes (Ordinary, external and foreign currency) Letter of Guarantee Foreign Inward Transfers Personal Banking

Current Account (Smart banking) ATM cum Debit Card Credit Card (Global) Debit Card Savings Account - with specialized services to students and salary accounts Current Account Fixed Deposits - special or multi-benefit fixed deposits, Recurring Fixed Deposits (RFD) and flexi- RFD's Balika Shiksha Social Banking

Special banking services to farmers Special Schemes (For women and weaker section) and financial assistance to small-scale industries (SSI's) Other On-Line services

Bill Payments for telephone, electricity, mobile, railway reservations, insurance and other bills.

E-Tax Payments Internet Banking Mobile Banking Forex services beneficial to both traders and NRI's PPF Accounts for senior citizens

The State Bank of India is one of the leading banks in India. The bank traces its origin to the first decade of the 19th century. Later on, it was merged with the Imperial Bank. In the year 1955, the Government of India nationalized the Imperial Bank along with the Reserve Bank of India. Ever since that time, the bank acquired its present name that is SBI. The State Bank of India is India's largest commercial bank. The State Bank of India has its presence all over India with 16,000 branches. Various services provide by SBI to its customers MARKET PLACE BUSINESS A customized list of information based on individual needs helps customers make intelligent decisions about loans from several financial institutions, insurance products, and other financial services. State Bank of India Services are most varied and innovative amongst all its contemporaries. Services Provided by S.B.I.

Personal Banking. NRI Services. Agriculture.

International. Corporate Domestic Treasury. Revised Service Charge. ATM Services. Internet Banking. E-Pay. Home loans and consumer loans are mainly provided through the Internet Provide insurance and home loan agencies, debt collection, and art brokerage and sale. E-Rail.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". We realised that only a single-minded focus on product quality and service excellence would help us get there. Today, we are proud to say that we are well on our way towards that goal. Various services provide by HDFC Bank to its customers Credit Cards Debit Cards Prepaid Cards Personal Loan Home Loan Two Wheeler Loan New Car Loans Loan against property Commercial vehicle loan

Construction equipment Net Banking Mobile Business ATM Phone Banking E-mail statement Bill Pay Visa Money transfer Excise & Service Tax Payment, Mutual Fund, Insurance, Bonds, etc.

REVIEW Of LITERATURE

REVIEW OF EXISTING LITERATURE Cooper Robert and Brentani Ulricke de(1991) r eview in their article the results of their study of firms participating in the industrial financial services industry. Using a selfadministered questionnaire, they obtained data on 56 successful and 50 failed products and found that success and failure are strongly associated with eleven important dimensions: synergy, product/market fit, quality of execution of the launch, unique/superior product, quality of execution of marketing activities, market growth and size, service expertise, quality of execution of technical activities, quality of service delivery, quality of execution of pre-development activities, and the presence of tangible elements of the service offering. They report some surprises, including their observation that while new to the firm, products entail more risk than close to home ones, the resulting level of success is not sharply reduced. Lewis Barbara R.(1993) Explore in his articles the banks and other financial services providers are increasingly developing service quality initiatives. In this article some of the research literature on service quality is considered to include definitions, determinants and measurement of quality. Attention is also given to research applications which focus on management, employee and customer perspectives. In addition, a number of continuing service quality concerns are highlighted, relating to changing customer expectations, the need for an integrated approach to service quality and the development of service quality measurement tools.

Boyd. William L., Leonard Myron, White Charles.(1994) Review in their article with bank deregulation and more sophisticated customers, it has become very important that banks and other financial institutions determine the factors which are pertinent to the customer's selection process. Through a survey of households, evaluates the relative importance attached to selection criteria used to choose a financial institution. The results provide the basis for a demographic and behavioural profile which is used to examine the emphasis of some criteria over others. Cooper Robert G. (1994) Explore in their article despite previous comparisons of success and unsuccessful new products, an important question remains unaddressed: What separates very successful new service products from the ordinary? Robert Cooper, Christopher Easingwood, Scott Edgett, Elko Kleinschmidt, and Chris Storey obtained data on 173 new financial services and identified three performance dimensions: financial performance, relationship enhancement, and market development. Of eleven potential success determinants, nine were found to be drivers of performance. Management implications included the need for a market-driven, customer-focused new product process, greater emphasis on planning and executing the launch, the role of product design, and project prioritization factors. Athanassopoulos Antreas D. (1997) Explore in his article that they concentrate on the assessment of the productive efficiency of bank branches. Bank branch operations are characterised by the effort made by management to pursue the banks' corporate objectives. The tangible part of this effort can be assessed by the operating efficiency of the branch while the intangible part is encapsulated by the quality of the provided services. The assessment of branch efficiency is pursued using data envelopment analysis methods enhanced by the value judgements of individual branch managers. This development gives insights on issues related to the appropriateness of branch input mix. The effort effectiveness is estimated by embodying three quality dimensions on the operating efficiency of bank branches. Empirical results are discussed from a sample of sixty eight commercial bank branches in Greece.

Berger Allen N , Demsetz Rebecca S, Strahan Philip E ( 1999) Explore in their

article

This article designs a framework for evaluating the causes, consequences, and future implications of financial services industry consolidation, reviews the extant research literature within the context of this framework (over 250 references), and suggests fruitful avenues for future research. The evidence is consistent with increases in market power from some types of consolidation; improvements in profit efficiency and diversification of risks, but little or no cost efficiency improvement on average; relatively little effect on the availability of services to small customers; potential improvements in payments system efficiency; and potential costs on the financial system from increases in systemic risk or expansion of the financial safety net. Dennis Steven A, Mullineaux Donald J (2000) Explore in their article that their paper analyzes the market for syndicated loans, a hybrid of private and public debt, which has grown at well over a 20% rate annually over the past decade and which totaled over $1 trillion in 1997. We identify empirically the factors that influence a bank or nonbank's decision to syndicate a loan and the determinants of the proportion of the loan sold in the event of syndication. The evidence reveals a loan is more likely to be syndicated as information about the borrower becomes more transparent, as the syndicate's managing agent becomes more reputable, and as the loan's maturity increases. The lead manager holds larger proportions of information-problematic loans in its own portfolio. Loan syndications, like loan sales, appear to be motivated, in part, by capital regulations, and the liquidity position of the agent bank influences the likelihood of syndication, but not the extent. Milind Sathye (2003) The objective of this paper is to measure the productive efficiency of banks in a developing country, that is, India. The measurement of efficiency is done using data envelopment analysis. Two models have been constructed to show how efficiency scores vary with change in inputs and outputs. The efficiency scores, for three groups of banks, that is, publicly owned, privately owned and foreign owned, are measured. The study shows that the mean efficiency score of Indian banks compares well with the world mean efficiency score and the efficiency of private sector commercial banks as a group is, paradoxically lower than that of public sector banks and foreign

banks in India. The study recommends that the existing policy of reducing nonperforming assets and rationalization of staff and branches may be continued to obtain efficiency gains and make the Indian banks internationally competitive which is a declared objective of the Government of India. Berger Allen N., Cowan Adrian M., Frame W. Scott (2011) review in their article the literature has documented a positive relationship between the use of credit scoring for small business loans and small business credit availability, broadly defined. However, this literature is hampered by the fact that all of the studies are based on a single 1998 survey of the very largest U.S. banking organizations. This paper addresses a number of deficiencies in the extant literature by employing data from a new survey of the use of credit scoring in small business lending, primarily by community banks. The survey evidence suggests that the use of credit scores in small business lending by community banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business owners, rather than the more encompassing small business credit scores that include data on the firms as well as on the owners. Our empirical analysis suggests that credit scoring is associated with an initial increase in small business lending activity that moderates over time and no change in the quality of the loan portfolio. Supplementary analysis suggests that the use of credit scores for small business lending has a negative initial effect on community bank profitability that moderates over time. Harding John, Xiaozhong and Ross Stephen (2013) explore in their article studies the impact of capital requirements, deposit insurance and franchise value on a banks capital structure. We find that properly regulated banks voluntarily choose to maintain capital in excess of the minimum required. Central to this decision is both firm franchise value and the ability of regulators to place banks in receivership stripping equity holders of firm value. These features of our model help explain both the capital structure of the large mortgage Government Sponsored Enterprises and the recent increase in risk taking through leverage by financial institutions. The insights gained from the model are useful in guiding the discussion of financial regulatory reforms.

CONCEPTUALISATION A bank is a financial institution and a financial intermediary that accepts deposits and provides those deposits into lending activities, either directly through loan or indirectly through capital markets. A bank is the connection between customers those having capital surplus and customers with capital deficits. A bank can earn profit in various ways including transaction fees, interest and financial advice. But the main method is through charging interest on the capital it lends out to customers. The bank profits from the difference between the level of interest it generates from borrowers and level of interest pays for deposits and other sources of funds. This difference is referred to as the spread between the interest earn on lending and the interest pay on deposits to customers. Authorization to trade is granted by Banking Regulatory Authority and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. Various services offered by banks Receiving accounts. Providing loans to individuals and businesses Cashing cheques deposits from their customers and issuing checking and savings

 Issuing credit cards, ATM cards, and debit cards Storing valuables, particularly in a safe deposit box Financial transactions can be performed through several different channels:

Mail: most banks accept cheque deposits through mail and use mail to communicate with customers, e.g. by sending out statements Mobile banking is a method to conduct banking transactions Online banking allows its customer in performing multiple transactions, payments etc. over the Internet

Relationship Managers, mostly for business banking or private banking, often visit customers at their homes or businesses Telephone banking helps to perform transactions over the telephone when requested with telephone operator Video banking helps in performing banking transactions or professional banking consultations through a remote video and audio connection. Banks also enable customer payments via other payment methods such as EFTPOS, Wire transfers, Automated Clearing House (ACH) or telegraphic transfer.

OBJECTIVES OF THE STUDY The followings are the objectives of the study: To identify the various financial services provided by the bank to the companies. To study the customers expectations regarding banks & its services To make comparative study of different banks i.e. ICICI, HDFC, PNB, SBI etc To study the level of customer satisfaction regarding different banks

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research Design:
A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine reference to the research purpose with economy in procedure. In our training project we have used these two types of research designs:

Exploratory Research: - Research is usually done to gain insight into the

problem. This is generally conducted for a problem, which the researcher knows nothing.

Descriptive Research: - Research helps in determining the frequency with

which something occurs or relationship between two variables of trend of consumption of a project of such characteristics as age, sex, geographic location etc. Descriptive research is generally guided by one or more specific hypothesis.

Collection of Data: - The data can be collected from primary and secondary
sources. The basic premises of my study are primary data but at the same time it is supplemented with the secondary data. Random sample that was representative of the target market was chosen, the respondents were contacted personally and the research instrument use of collecting data was the questionnaire. To get insight into the research problem interview regarding their buying practices too was made. This was done to cross check the authenticity of the information provided. Collection of data .

This research has been carried out in respect of four different banks. These are: Public Bank (SBI & PNB) Private Bank (ICICI, HDFC) For the purpose of research study both primary data as well as secondary data has been collected. o Primary data o Secondary data Primary Sources: Following methods are used for data collection: (i) (ii) (iii) Questionnaires Personal Interviews Telephone Interviews

Secondary Data:
Records Journals and Magazines of company.

Sample Size:
Total number of respondents was 100 respondents.

Sample unit:
Respondents from Yamuna Nagar and Jagadhri

Sample Design:
Data has been presented with the help of Bar Graph, Pie Charts etc.

LIMITATIONS OF THE STUDY TIME CONSTRAINT: An in-depth project could not be carried out due to the paucity of time SMALL SAMPLE SIZE: A sample size of only 100 respondents was a small one to understand the market behavior in whole. LACK OF INTEREST: Many of the respondents did not think hard enough while choosing the specific point. This could have led to a biased view and thus affected the analysis.

Q. 1 DO YOU TAKE ANY FINANCIAL SERVICES FROM BANK? Table No. 1 OPTIONS YES NO (Source: Sample Survey) RESPONDENTS( In Percentage) 80 20

Figure No. 1

Interpretation: Maximum no .of respondents i.e. 80% take financial services from banks.

Q.2 WHAT KIND OF SERVIES DO YOU GET FROM YOUR BANK? Table No. 2 OPTIONS CREDIT CUSTODY INSURANCE ADVISORY Source: (Sample survey) RESPONDENTS (IN Percentage) 60 10 20 10

Figure 2

Interpretation: Most of the respondents i.e. (60%) take credit facilities from bank. 20% respondents take insurance service from their banks while custody & advisory services are availed by same numbers of respondents i.e. 10%

Q. 3 FROM WHICH BANK YOU TAKE YOUR SERVICES? Table No. 3 OPTIONS ICICI SBI PNB HDFC ANY OTHER Source: (Sample survey) RESPONDENTS( In percentage) 20 40 20 10 10

Figure: 3

Interpretation: SBI is the most preferred bank amoung respondents with 40% followed by ICICI & PNB with 20%.

Q.4 HOW DO YOU TAKE THESE SERVICES ? Table No. 4 RESPONDENTS OPTIONS ONLINE PERSONALLY Source: (Sample survey) (In Percentage) 55 45

Figure 4

Interpretation: Most of the respondent i.e. (55%) prefer online services from the bank while 45% contact their bank personally.

Q.5 WHICH ONE IS ECONOMICALLY BENEFICIAL? Table No. 5 OPTIONS ONLINE PERSONALLY Source: (Sample survey) RESPONDENTS (In Percentage) 60 40

Figure No. 5 Interpretation: The survey reveals that Online banking is more economically beneficial for the respondents.

Q.6 ON WHAT BASIS DO YOU TAKE SERVICES FROM A PARTICULAR BANK? Table No. 6 OPTIONS ECONOMICAL PROXIMITY PROVIDES GOOD SERVICES OTHERS Source: (Sample survey) RESPONDENTS (In Percentage) 40 5 50 5

Figure No. 6 Interpretation: Most of the respondents take financial services from their bank due to good services provided by their banks. Other major factor to take the servises is economic aspect of services.

Q.7 HOW OFTEN DO YOU TAKE SERVICES FROM BANKS? Table No. 7 OPTIONS DAILY WEEKLY MONTHLY Source: (Sample survey) RESPONDENTS (In Percentage) 10 30 60

Figure No. 7 Interpretation: Mostly respondent take financial services on monthly basis

Q.8 WHICH BANK PROVIDES YOU MAXIMUM SERVICES? Table No. 8 OPTIONS ICICI SBI PNB HDFC ANY OTHER Source: (Sample survey) RESPONDENTS (In Percentage) 20 35 20 15 10

Figure No. 8 Interpretation: Maximum respondents takes financial services from SBI and there is tough competition between PNB (public) & ICICI (pvt.)

Q.9(a) ARE YOU SATISFIED WITH YOUR BANK?

Table No.9 OPTIONS YES NO Source: (Sample survey) RESPONDENT(In Percentage) 95 5

Figure No. 9(a)

Interpretation: A huge no. of respondents i.e. 95% are satisfied with the services provided by their banks.

Q.9 (b) If yes, to what extent ? Table No. 9 (b)

OPTIONS

RESPONDENTS (In Percentage)

To great extent To some extent Not at all

60 40 Nil

Figure No.9 (b) Interpretation: Mostly respondents i.e. (60%) are satisfied with their bank to great extent while 40% respondents are satisfied to some extent.

Findings

 Maximum no of respondents take financial services from banks for smoothly conduct their business and operations and remaining using their own funds for operations. Most of the respondents i.e. (60%) take credit facilities from bank. 20% respondents take insurance service from their banks while custody & advisory services are availed by same numbers of respondents i.e. 10% SBI is the most preferred bank amoung respondents with 40% followed by ICICI & PNB with 20%. Today in high technology world most of the respondents contact their bank through online and remaining respondents contact their banks personally. The survey reveals that Online banking is more economically beneficial for the respondents as it save the precious time and cost. Most of the respondents take financial services from their bank due to good services provided by their banks. Other major factor to take the servises is economic aspect of services. Mostly respondents frequently using financial services on monthly basis(60%) and remaining are taking financial services on weekly and daily basis. SBI provides maximum services to its customers. While tough competition between PNB (public) & ICICI (pvt.). A huge no. of respondents are satisfied with the services provided by their banks. Mostly respondents i.e. (60%) are satisfied with their bank to great extent while 40% respondents are satisfied to some extent.

SUGGESTIONS /RECOMMENDATIONS

As the study shows that there is tough competition in banking sector so banks should concentrate on different aspects to retain the existing customers as well as attracting new ones.

Bank should be provided more electronic services which saves the precious time of the customers(companies).

All the banks (public & pvt.) should improve the network coverage all over the India.

The banks should make available the additional supplementary services like bank cards, ATM, custody services.

Customers any bank.

should consider all factors such as interest rate, supplementary

services, banks image etc.while taking decision for apply for financial services to

Banks should try to build a good image in the service sector.

CONCLUSION

Credit is a necessary but not sufficient condition for the success of an urban informal sector enterprise. Banks should do what they can to provide related services. In this context, the work done by Canara and Syndicate Banks to establish Rural Development and Self Employment Training Institutes (RUDSETIs), can be replicated even for urban areas. In addition, attempts should be made to identify and direct infrastructure investments and common facilities in areas where there is a possibility of servicing a large number of urban informal sector producers such as handloom and handicraft clusters and agro-processing zones India needs an Apex Bank for Urban Development (ABUD) urgently to address many issues of complexity in urban micro credit. Concluding the series, the following points will thus help design an ABUD. Conduct research and be a depository of knowledge related to urban micro finance in India. Train banks, NGOs, urban local bodies, and self help groups Frame and steer national policy on urban micro credit Act as a refinancing agency Design programmes with feasible implementation structures Monitor and evaluate both financial and social developments of urban micro credit Coordinate the interests and functions of Indian and international stakeho

References Books

Kothari, C.R., Research Methodology,New Delhi, New Age International (P) Ltd., 1985, 2004 Shekhar, K.C., Banking Theory & Practice, Vikas Publication, 9th Edition

Websites www.sbi.co.in https://www.pnbindia.in www.icicibank.com www.hdfcbank.com/ http://www.sciencedirect.com/science/article/pii/073767829190002G http://www.emeraldinsight.com/journals.htm?articleid=854829&show=abstract

http://www.emeraldinsight.com/journals.htm? articleid=854838&show=abstract

http://www.sciencedirect.com/science/article/pii/0737678294900841
http://www.sciencedirect.com/science/article/pii/S037722179600399 http://www.sciencedirect.com/science/article/pii/S0378426698001253

http://www.sciencedirect.com/science/article/pii/S1042957300902985 http://www.sciencedirect.com/science/article/pii/S037722170200471X http://link.springer.com/article/10.1007%2Fs10693-010-0088-1

. http://econpapers.repec.org/article/kapjfsres/v_3a43_3ay_3a2013_3ai_3a2_3ap_3 a127-148.htm

QUESTIONNAIRE I am Nancy Rao student of MBA of S.D.Institute of management and techonology (S.D.I.M.T.), Jagadhri affiliated to Kurukshetra University, Kurukshetra,. I have assigned a topic Financial Services of Banks with reference to SBI, PNB, ICICI, HDFC Bank in Yamuna Nagar and Jagadhri Region to make our project report. I am requesting you to help us in filling this questionnaire. The answer given by you would be highly beneficial for our research report. General information: Name : Education: Address: Age: Earnings:

Q.1 Do you take any financial services from bank? Yes NO

Q. 2 What kind of services you get from your bank? Credit Custody Insurance Advisory

Q. 3 From which bank you take your services?

ICICI PNB OTHER (specify) Q. 4 How you take these services? Online

SBI HDFC

personally

Q. 5 Which one is more economically beneficial? Online personally

Q. 5 Are you satisfied with the services provided by your bank? Yes No

Q. 6 On what basis do you take services from a particular bank? Economical Provides good services proximity Others

Q. 7 How often do you take services from banks? Daily Weekly Monthly

Q. 8 Which bank provide you maximum services? ICICI PNB OTHER (specify) SBI HDFC

Q. 9 (a) Are you satisfied with your bank? Yes Q. 9 (b) If yes, to what extent? To great extent To some extent Signature DECLARATION I am Nancy Rao student of MBA of S.D.Institute of Management and Techonology (S.D.I.M.T.), Jagadhri affiliated to Kurukshetra University, Kurukshetra, declare that the project report made on topic Financial Services of Banks with reference to SBI, PNB, ICICI, HDFC Bank in Yamuna Nagar and Jagadhri Region is our original work and there is no piracy in it. All the contents and data related to financial services provided by banks in this report in my opinion is fully adequate, in cope and quality, as a research study which are relevant to me and I have completed during last one months in specified area. We also declare that it has not been submitted earlier to anyone. If any of information is found incorrect then I would be responsible for all that. Nancy Rao No

PREFACE Today in this dynamic world all the things are subject to change, so as to get more knowledge this research project has been undertaken during our pursuance for the degree of Master Business Administration (MBA) from Kurukshetra University, Kurukshetra. Research project is an essential part of every professional program. It is very helpful in providing knowledge of the practical aspects of the academic studies. It provides the student an opportunity to expose themselves to environment that is quit different from that of classroom. I have made a study on a project Financial services of Banks. As it is very difficult to go through all the matters, I have taken some objectives. My main purpose is know how the various financial services provided by banks to the companies. And I hope the knowledge I got from here will be assets of mine for whole life. As we know that if the base is strong then building life increases by many fold.

ACKNOWLEDGEMENT Any project cant be successful completed without the support and helps of lots of people. It is with great pleasure, I wish to express my gratitude to the people who have been actively supported in this project. I am specially thankful to Director Maam Dr. Shelly Gupta for their valuable suggestions and whole hearted commitment. A special thank goes to H.O.D. (M.B.A. department) Dr. Shilpa Jain for all of her efforts and for being so great to work with. I would like to convey my sincere thanks for the ingenious guidance provided to me by Ms. Shelly Asstt. Professor (MBA Deptt). despite of her work pressure and busy schedule. They guide me from time to time and gave me a lot of valuable suggestions and ideas which helped me in completing this project successfully. I express my gratitude to all the faculty members for their timely and valuable support. As always i would like to convey my heartfelt gratitude to my parents, family members for their critical appreciation and motivating me with enthusiasm to complete my project work. Without their invaluable co-operation, this project would not have taken its end shape.

INTRODUCTION Of TOPIC

RESEARCH METHODOLOGY

DATA ANALYSE & INTERPRETATION

FINDINGS

LIMITATIONS

CONCLUSIONS

OBJECTIVE OF STUDY

BIBLIOGRAPHY

ANNEXURE

REVIEW OF LITERATURE

CONCEPTULIZATION