A

Research Proposal
On
A study to find out impact of HRD Climate on Job Satisfaction of employees
working in Pharmaceutical sector within Ahmedabad

Submitted to
(Kalol Institute of Management)
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ASMINISTRATION

In
Gujarat Technological University
UNDER THE GUIDANCE OF
Ms. Salma Ganchi
Assistant Professor
Submitted by
Ravi Patel -137250592112
Jay Patel - 1372505921080
[Batch: 2012-14]
MBA SEMESTER III
(Kalol Institute of Management)
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
Nov-Dec, 2014
KALOL INSTITUTE OF MANAGEMENT

Page 1

Introduction of banking sector

1.1 Introduction
A bank is a financial institution that provides banking and other financial services to their customers. A bank is
generally understood as an institution which provides fundamental banking services such as accepting deposits
and providing loans. There are also nonbanking institutions that provide certain banking services without
meeting the legal definition of a bank. Banks are a subset of the financial services industry. A banking system
also referred as a system provided by the bank which offers cash management services for customers, reporting
the transactions of their accounts and portfolios, through out the day. The banking system in India, should not
only be hassl free but it should be able to meet the new challenges posed by the technology and any other
external and internal factors. For the past three decades, Indias banking system has several outstanding
achievements to its credit. The Banks are the main participants of the financial system in India. The Banking
sector offers several facilities and opportunities to their customers. All the banks safeguards the money and
valuables and provide loans,credit, and payment services, such as checking accounts, money orders, and
cashiers cheques. The banks also offer investment and insurance products. As a variety of models for
cooperation and integration among finance industries have emerged, some of the traditional distinctions
between banks, insurance companies, and securities firms have diminished. In spite of these changes, banks
continue to maintain and perform their primary roleaccepting deposits and lending funds from these deposits.

1.2 Need of the Banks

Before the establishment of banks, the financial activities were handled by money lenders and individuals. At
that time the interest rates were very high. Again there were no security of public savings and no uniformity
regarding loans. So as to overcome such problems the organized banking sector was established, which was
fully regulated by the government. The organized banking sector works within the financial system to provide
loans, accept deposits and provide other services to their customers. The following functions of the bank
explain the need of the bank and its importance:
To provide the security to the savings of customers.
To control the supply of money and credit
To encourage public confidence in the working of the financial system, increase
savings speedily and efficiently.
To avoid focus of financial powers in the hands of a few individuals and
KALOL INSTITUTE OF MANAGEMENT

Page 2

institutions.
To set equal norms and conditions (i.e. rate of interest, period of lending etc) to all
types of customers

1.3 History of Indian Banking System [6] [7]

The first bank in India, called The General Bank of India was established in the year 1786. The East India
Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay (1840) and Bank of Madras
(1843). The next bank was Bank of Hindustan which was established in 1870. These three individual units
(Bank of Calcutta, Bank of Bombay, and Bank of Madras) were called as Presidency Banks. Allahabad Bank
which was established in 1865, was for the first time completely run by Indians. Punjab National Bank Ltd. was
set up in 1894 with head quarters 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. In 1921, all presidency banks
were amalgamated to 22 form the Imperial Bank of India which was run by European Shareholders. After that
the Reserve Bank of India was established in April 1935. At the time of first phase the growth of banking sector
was very slow. Between 1913 and 1948 there were approximately 1100 small banks in India. To streamline the
functioning and activities of commercial banks, the Government of India came up with the Banking Companies
Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23
of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as a
Central Banking Authority After independence, Government has taken most important steps in regard of
Indian Banking Sector reforms. In 1955, the Imperial Bank of India was nationalized and was given the name
"State Bank of India", to act as the principal agent of RBI and to handle banking transactions all over the
country. It was established under State Bank of India Act, 1955. Seven banks forming subsidiary of State Bank
of India was nationalized in 1960. On 19th July, 1969, major process of nationalization was carried out. At the
same time 14 major Indian commercial banks of the country were nationalized. In 1980,
another six banks were nationalized, and thus raising the number of nationalized banks to 20. Seven more
banks were nationalized with deposits over 200 Crores. Till the year 1980 approximately 80% of the banking
segment in India was under governments ownership. On the suggestions of Narsimhan Committee, the
Banking Regulation Act was amended in 1993 and thus the gates for the new private sector banks were
opened. The following are the major steps taken by the Government of India to Regulate Banking institutions
in the country:1949 : Enactment of Banking Regulation Act.
1955 : Nationalisation of State Bank of India.
1959 : Nationalization of SBI subsidiaries.
KALOL INSTITUTE OF MANAGEMENT

Page 3

1961 : Insurance cover extended to deposits.

1969 : Nationalisation of 14 major Banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalisation of seven banks with deposits over 200 Crores. 23

1.3.1 Nationalisation [3]

By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the
Indian economy. At the same time, it has emerged as a large employer, and a debate has ensured about the
possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the
intention of the Government of India (GOI) in the annual conference of the All India Congress Meeting in a
paper entitled "Stray thoughts on Bank Nationalisation". The paper was received with positive enthusiasm.
Thereafter, her move was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest
commercial banks with effect from th midnight of July 19, 1969. Jayaprakash Narayan, a national leader of
India, described the step as a "Masterstroke of political sagacity" Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of (Undertaking) Bill, and
it received the presidential approval on 9 August, 1969.
A second step of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the
nationalisation was to give the government more control of credit delivery. With the second step of
nationalisation, the GOI controlled around 91% of the banking business in India. Later on, in the year 1993, the
government merged New Bank of India with Punjab National Bank. It was the only merger between
nationalised banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this,
until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the
Indian economy. The nationalised banks were credited by some; including Home minister P. Chidambaram, to
have helped the Indian economy withstand the global financial crisis of 2007-2009.

1.3.2 Liberalisation [3]

In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalisation, licensing a small
number of private banks. These came to be known as New Generation tech-savvy banks, and included Global
Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank
of 24 Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move along with the

KALOL INSTITUTE OF MANAGEMENT

Page 4

rapid growth in the economy of India revolutionized the banking sector in India which has seen rapid growth
with strong contribution from all the three sectors of banks, namely, government banks, private banks and
foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could
exceed the present cap of 10%, at present it has gone up to 49% with some restrictions. The new policy shook
the banking sector in India completely. Bankers, till this time, were used to the 4-6-4 method (Borrow at 4%;
Lend at 6%; Go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods
of working for the traditional banks. All this led to the retail boom in India. People not just demanded more
from their banks but also received more. Currently (2007), banking in India is generally fairly mature in terms
of supply, product range and reach-even though reach in rural India still remains a challenge for the private
sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets as compared to other banks in comparable economies in its
region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The
stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate-and
this has mostly been true. With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking, mortgages and
investment services are expected to be strong.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kotak Mahindra
Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in
a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector
banks would need to be voted by them. In recent years critics have charged that the non-government owned
banks are too aggressive in their loan recovery efforts in connection with housing, vehicle and 25 personal
loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.

1.3.3 Government policy on banking industry (Source:-The federal Reserve Act 1913 and
The Banking Act 1933)
Banks operating in most of the countries must contend with heavy regulations, rules enforced by Federal and
State agencies to govern their operations, service offerings, and the manner in which they grow and expand
their facilities to better serve the public. A banker works within the financial system to provide loans, accept
deposits, and provide other services to their customers. They must do so within a climate of extensive
regulation, designed primarily to protect the public interests. The main reasons why the banks are heavily
regulated are as follows:

KALOL INSTITUTE OF MANAGEMENT

Page 5

 To protect the safety of the publics savings.

To control the supply of money and credit in order to achieve a nations broad
economic goal.
To ensure equal opportunity and fairness in the publics access to credit and other
vital financial services.
To promote public confidence in the financial system, so that savings are made
speedily and efficiently.
To avoid concentrations of financial power in the hands of a few individuals and
institutions.
Provide the Government with credit, tax revenues and other services.
To help sectors of the economy that they have special credit needs for eg.
Housing, small business and agricultural loans etc. 26

1.3.4 Law of banking [3]

Banking law is based on a contractual analysis of the relationship between the bank and customerdefined as
any entity for which the bank agrees to conduct an account. The law implies rights and obligations into this
relationship as follows:
The bank account balance is the financial position between the bank and the customer: when the account is in
credit, the bank owes the balance to the customer; when the account is overdrawn, the customer owes the
balance to the bank.
The bank agrees to pay the customer's cheques up to the amount standing to the credit of the customer's
account, plus any agreed overdraft limit.
The bank may not pay from the customer's account without a mandate from the customer, e.g. cheques drawn
by the customer.
The bank agrees to promptly collect the cheques deposited to the customer's account as the customer's agent,
and to credit the proceeds to the customer's account.
The bank has a right to combine the customer's accounts, since each account is just an aspect of the same
credit relationship.
The bank has a lien on cheques deposited to the customer's account, to the extent that the customer is indebted
to the bank.
The bank must not disclose details of transactions through the customer's accountunless the customer
consents, there is a public duty to disclose, the bank's interests require it, or the law demands it.

KALOL INSTITUTE OF MANAGEMENT

Page 6

 The bank must not close a customer's account without reasonable notice, since cheques are outstanding in the
ordinary course of business for several days. These implied contractual terms may be modified by express
agreement between the customer and the bank. The statutes and regulations in force within a particular
jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the
bank-customer relationship. 27

1.3.5 Regulations for Indian banks [4]

Currently in most jurisdictions commercial banks are regulated by government entities and require a special
bank license to operate. Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the customer's orderalthough
money lending, by itself, is generally not included in the definition. Unlike most other regulated industries, the
regulator is typically also a participant in the market, i.e. a government-owned (central) bank. Central banks
also typically have a monopoly on the business of issuing banknotes. However, in some countries this is not the
case. In UK, for example, the Financial Services Authority licenses banks, and some commercial banks (such
as the Bank of Scotland) issue their own banknotes in addition to those issued by the Bank of England, the UK
government's central bank. Some types of financial institutions, such as building societies and credit unions,
may be partly or wholly exempted from bank license requirements, and therefore regulated under separate
rules. The requirements for the issue of a bank license vary between jurisdictions but typically include:
Minimum capital
Minimum capital ratio
'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior officers
Approval of the bank's business plan as being sufficiently prudent and plausible.

1.4 Classification of Banking Industry in India [1] [2] [9] [13]

Indian banking industry has been divided into two parts, organized and unorganized sectors. The organized
sector consists of Reserve Bank of India, Commercial Banks and Co-operative Banks, and Specialized
Financial Institutions (IDBI, ICICI, IFC etc). The 28 unorganized sector, which is not homogeneous, is largely
made up of money lenders and indigenous bankers.
An outline of the Indian Banking structure may be presented as follows:1. Reserve banks of India.
2. Indian Scheduled Commercial Banks.
KALOL INSTITUTE OF MANAGEMENT

Page 7

a) State Bank of India and its associate banks.

b) Twenty nationalized banks.
c) Regional rural banks.
d) Other scheduled commercial banks.
3. Foreign Banks
4. Non-scheduled banks.
5. Co-operative banks.

1.4.1 Reserve bank of India

The reserve bank of India is a central bank and was established in April 1, 1935 in accordance with the
provisions of reserve bank of India act 1934. The central office of RBI is located at Mumbai since inception.
Though originally the reserve bank of India was privately owned, since nationalization in 1949, RBI is fully
owned by the Government of India. It was inaugurated with share capital of Rs. 5 Crores divided into shares of
Rs. 100 each fully paid up. RBI is governed by a central board (headed by a governor) appointed by the central
government of India. RBI has 22 regional offices across India. The reserve bank of India was nationalized in
the year 1949. The general superintendence and direction of the bank is entrusted to central board of directors
of 20 members, the Governor and four deputy Governors, one Governmental official from the ministry of
Finance, ten nominated directors by the government to give representation to important elements in the
economic life of the country, and the four nominated director by the Central Government to represent the four
local boards with the headquarters at Mumbai, Kolkata, Chennai and 29
New Delhi. Local Board consists of five members each central government appointed for a term of four years
to represent territorial and economic interests and the interests of cooperative and indigenous banks.
The RBI Act 1934 was commenced on April 1, 1935. The Act, 1934 provides the statutory basis of the
functioning of the bank. The bank was constituted for the need of following:
- To regulate the issues of banknotes.
- To maintain reserves with a view to securing monetary stability
- To operate the credit and currency system of the country to its advantage.
Functions of RBI as a central bank of India are explained briefly as follows:
Bank of Issue:
The RBI formulates, implements, and monitors the monitory policy. Its main objective is maintaining price
stability and ensuring adequate flow of credit to productive sector.
Regulator-Supervisor of the financial system:

KALOL INSTITUTE OF MANAGEMENT

Page 8

RBI prescribes broad parameters of banking operations within which the countrys banking and financial
system functions. Their main objective is to maintain public confidence in the system, protect depositors
interest and provide cost effective banking services to the public.
Manager of exchange control:
The manager of exchange control department manages the foreign exchange, according to the foreign
exchange management act, 1999. The managers main objective is to facilitate external trade and payment and
promote orderly development and maintenance of foreign exchange market in India.
Issuer of currency:
A person who works as an issuer, issues and exchanges or destroys the currency and coins that are not fit for
circulation. His main objective is to give the public adequate quantity of supplies of currency notes and coins
and in good quality.30
Developmental role:
The RBI performs the wide range of promotional functions to support national objectives such as contests,
coupons maintaining good public relations and many more.
Related functions: There are also some of the related functions to the above mentioned main functions. They
are such as, banker to the government, banker to banks etc.
Banker to government performs merchant banking function for the central and the
state governments; also acts as their banker.
Banker to banks maintains banking accounts to all scheduled banks.
Controller of Credit:
RBI performs the following tasks:
It holds the cash reserves of all the scheduled banks.
It controls the credit operations of banks through quantitative and qualitative
controls.
It controls the banking system through the system of licensing, inspection and
calling for information.
It acts as the lender of the last resort by providing rediscount facilities to
scheduled banks.
Supervisory Functions:
In addition to its traditional central banking functions, the Reserve Bank performs certain non-monetary
functions of the nature of supervision of banks and promotion of sound banking in India. The Reserve Bank
Act 1934 and the banking regulation act 1949 have given the RBI wide powers of supervision and control over
commercial and co-operative banks, relating to licensing and establishments, branch expansion, liquidity of
their assets, management and methods of working, amalgamation, reconstruction and liquidation. The RBI is
KALOL INSTITUTE OF MANAGEMENT

Page 9

authorized to carry out periodical inspections of the banks and to call for returns and necessary information
from them. The nationalisation of 14 major Indian scheduled banks in July 1969 has imposed new
responsibilities on the RBI for directing the growth of banking and credit policies towards more rapid
development of the economy and realisation of certain desired social objectives. The supervisory functions of
the RBI have helped a great deal in improving 31 the standard of banking in India to develop on sound lines
and to improve the methods of their operation.
Promotional Functions:
With economic growth assuming a new urgency since independence, the range of the Reserve Banks
functions has steadily widened. The bank now performs a variety of developmental and promotional functions,
which, at one time, were regarded as outside the normal scope of central banking. The Reserve bank was asked
to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote
new specialized financing agencies.

1.4.2 Indian Scheduled Commercial Banks

The commercial banking structure in India consists of scheduled commercial banks, and unscheduled banks.

Scheduled Banks:
Scheduled Banks in India constitute those banks which have been included in the second schedule of RBI act
1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section
42(6a) of the Act. Scheduled banks in India means the State Bank of India constituted under the State Bank
of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the s State Bank of India (subsidiary banks)
Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking companies
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in
the Second Schedule to the Reserve bank of India Act, 1934 (2 of 1934), but does not include a co-operative
bank. For the purpose of assessment of performance of banks, the Reserve Bank of India categories those
banks as public sector banks, old private sector banks, new private sector banks and foreign banks, i.e. private
sector, public sector, and foreign banks come under the umbrella of scheduled commercial banks.32
Regional Rural Bank:
The government of India set up Regional Rural Banks (RRBs) on October 2, 1975 [10]. The banks provide
credit to the weaker sections of the rural areas, particularly the small and marginal farmers, agricultural
labourers, and small enterpreneurs. Initially, five RRBs were set up on October 2, 1975 which was sponsored
by Syndicate Bank, State Bank of India, Punjab National Bank, United Commercial Bank and United Bank of
KALOL INSTITUTE OF MANAGEMENT

Page 10

India. The total authorized capital was fixed at Rs. 1 Crore which has since been raised to Rs. 5 Crores. There
are several concessions enjoyed by the RRBs by Reserve Bank of India such as lower interest rates and
refinancing facilities from NABARD like lower cash ratio, lower statutory liquidity ratio, lower rate of interest
on loans taken from sponsoring banks, managerial and staff assistance from the sponsoring bank and
reimbursement of the expenses on staff training. The RRBs are under the control of NABARD. NABARD has
the responsibility of laying down the policies for the RRBs, to oversee their operations, provide refinance
facilities, to monitor their
performance and to attend their problems.
Unscheduled Banks:
Unscheduled Bank in India means a banking company as defined in clause (c) of section 5 of the Banking
Regulation Act, 1949 (10 of 1949), which is not a scheduled bank.

1.4.3 NABARD
NABARD is an apex development bank with an authorization for facilitating credit flow for promotion and
development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural
crafts. It also has the mandate to support all other allied economic activities in rural areas, promote integrated
and sustainable rural development and secure prosperity of rural areas. In discharging its role as a facilitator for
rural prosperity, NABARD is entrusted with:
1. Providing refinance to lending institutions in rural areas
2. Bringing about or promoting institutions development and
3. Evaluating, monitoring and inspecting the client banks
33
Besides this fundamental role, NABARD also:
Act as a coordinator in the operations of rural credit institutions
To help sectors of the economy that they have special credit needs for eg.
Housing, small business and agricultural loans etc.
1.4.4 Co-operative Banks [10]
Co-operative banks are explained in detail in Section II of this chapter
1.5 Services provided by banking organizations [2]
Banking Regulation Act in India, 1949 defines banking as Accepting for the purpose of lending or
investment of deposits of money from the public, repayable on demand and withdrawable by cheques, drafts,
orders etc. as per the above definition a bank essentially
performs the following functions:-

KALOL INSTITUTE OF MANAGEMENT

Page 11

 Accepting Deposits or savings functions from customers or public by providing bank account, current
account, fixed deposit account, recurring accounts etc.
The payment transactions like lending money to the public. Bank provides an effective credit delivery system
for loanable transactions.
Provide the facility of transferring of money from one place to another place. For performing this operation,
bank issues demand drafts, bankers cheques, money orders etc. for transferring the money. Bank also provides
the facility of Telegraphic transfer or tele- cash orders for quick transfer of money.
A bank performs a trustworthy business for various purposes.
A bank also provides the safe custody facility to the money and valuables of the general public. Bank offers
various types of deposit schemes for security of money. For keeping valuables bank provides locker facility.
The lockers are small compartments with dual locking system built into strong cupboards. These are stored in
the banks strong room and are fully secured.
Banks act on behalf of the Govt. to accept its tax and non-tax receipt. Most of the government disbursements
like pension payments and tax refunds also take place through banks. 34 There are several types of banks,
which differ in the number of services they provide and the clientele (Customers) they serve. Although some of
the differences between these types of banks have lessened as they have begun to expand the range of products
and services they offer, there are still key distinguishing traits. These banks are as follows:
Commercial banks, which dominate this industry, offer a full range of services for individuals, businesses, and
governments. These banks come in a wide range of sizes, from large global banks to regional and community
banks.
Global banks are involved in international lending and foreign currency trading, in addition to the more typical
banking services.
Regional banks have numerous branches and automated teller machine (ATM) locations throughout a multistate area that provide banking services to individuals. Banks have become more oriented toward marketing and
sales. As a result, employees need to know about all types of products and services offered by banks.
Community banks are based locally and offer more personal attention, which many individuals and small
businesses prefer. In recent years, online bankswhich provide all services entirely over the Internethave
entered the market, with some success. However, many traditional banks have also expanded to offer online
banking, and some formerly Internet-only banks are opting to open branches.
Savings banks and savings and loan associations, sometimes called thrift institutions, are the second largest
group of depository institutions. They were first established as community-based institutions to finance
mortgages for people to buy homes and still cater mostly to the savings and lending needs of individuals.
Credit unions are another kind of depository institution. Most credit unions are formed by people with a
common bond, such as those who work for the same company or belong to the same labour union or church.
KALOL INSTITUTE OF MANAGEMENT

Page 12

Members pool their savings and, when they need money, they may borrow from the credit union, often at a
lower interest rate than that demanded by other financial institutions.
Federal Reserve banks are Government agencies that perform many financial services for the Government.
Their chief responsibilities are to regulate the banking industry and to help implement our Nations monetary
policy so our economy can run more efficiently

Structure of Indian bank

Reserve Bank of India:

KALOL INSTITUTE OF MANAGEMENT

Page 13

Reserve Bank of India is the Central Bank of our country. It was established on 1st April 1935 under the RBI
Act of 1934. It holds the apex position in the banking structure. RBI performs various developmental and
promotional functions. It has given wide powers to supervise and control the banking structure. It occupies the
pivotal position in the monetary and banking structure of the country. In many countries central bank is known
by different names.
For example, Federal Reserve Bank of U.S.A, Bank of England in U.K. and Reserve Bank of India in India.
Central bank is known as a bankers bank. They have the authority to formulate and implement monetary and
credit policies. It is owned by the government of a country and has the monopoly power of issuing notes.

2. Commercial Banks:
Commercial bank is an institution that accepts deposit, makes business loans and offer related services to
various like accepting deposits and lending loans and advances to general customers and business man. These
institutions run to make profit. They cater to the financial requirements of industries and various sectors like
agriculture, rural development, etc. it is a profit making institution owned by government or private of both.
Commercial bank includes public sector, private sector, foreign banks and regional rural banks:

a. Public sector banks:

It includes SBI, seven (7) associate banks and nineteen (19) nationalised banks. Altogether there are 27 public
sector banks. The public sector accounts for 90 percent of total banking business in India and State Bank of
India is the largest commercial bank in terms of volume of all commercial banks.

b. Private sector banks:

Private sector banks are those whose equity is held by private shareholders. For example, ICICI, HDFC etc.
Private sector bank plays a major role in the development of Indian banking industry.

c. Foreign Banks:
Foreign banks are those banks, which have their head offices abroad. CITI bank, HSBC, Standard Chartered
etc. are the examples of foreign bank in India.

KALOL INSTITUTE OF MANAGEMENT

Page 14

d. Regional Rural Bank (RRB):

These are state sponsored regional rural oriented banks. They provide credit for agricultural and rural
development. The main objective of RRB is to develop rural economy. Their borrowers include small and
marginal farmers, agricultural labourers, artisans etc. NABARD holds the apex position in the agricultural and
rural development.

3. Co-operative Bank:
Co-operative bank was set up by passing a co-operative act in 1904. They are organised and managed on the
principal of co-operation and mutual help. The main objective of co-operative bank is to provide rural credit.
The cooperative banks in India play an important role even today in rural co-operative financing. The
enactment of Co-operative Credit Societies Act, 1904, however, gave the real impetus to the movement. The
Cooperative Credit Societies Act, 1904 was amended in 1912, with a view to broad basing it to enable
organisation of non-credit societies.
Three tier structures exist in the cooperative banking:
i. State cooperative bank at the apex level.
ii. Central cooperative banks at the district level.
iii. Primary cooperative banks and the base or local level.

4. Scheduled and Non-Scheduled banks:

A bank is said to be a scheduled bank when it has a paid up capital and reserves as per the prescription of RBI
and included in the second schedule of RBI Act 1934. Non-scheduled bank are those commercial banks, which
are not included in the second schedule of RBI Act 1934.

5. Development banks and other financial institutions:

A development bank is a financial institution, which provides a long term funds to the industries for
development purpose. This organisation includes banks like IDBI, ICICI, IFCI etc. State level institutions like
SFCs SIDCs etc. It also includes investment institutions like UTI, LIC, and GIC etc.

KALOL INSTITUTE OF MANAGEMENT

Page 15

List of publick sector bank

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Bhartiya Mahila Bank

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

IDBI Bank Limited

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

State Bank of India

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

KALOL INSTITUTE OF MANAGEMENT

Page 16

list of Private Sector Banks is as follows:

Old Private Sector Banks

New Private Sector Banks

1. Bank of Rajasthan Ltd.

Bank of Punjab Ltd. (since merged with

Centurian Bank)

2. Catholic Syrian Bank Ltd.

2. Centurian Bank of Punjab (since merged with

HDFC Bank)

3. City Union Bank Ltd.

3. Development Credit Bank Ltd.

4. Dhanalakshmi Bank Ltd.

4.HDFC Bank Ltd.

5. Federal Bank Ltd.

5.ICICI Bank Ltd.

6. ING Vysya Bank Ltd.

6.IndusInd Bank Ltd.

7. Jammu and Kashmir Bank Ltd.

7.Kotak Mahindra Bank Ltd.

8. Karnataka Bank Ltd.

8.Axis Bank (earlier UTI Bank)

9. Karur Vysya Bank Ltd.

9. Yes Bank Ltd.

10. Lakshmi Vilas Bank Ltd.

KALOL INSTITUTE OF MANAGEMENT

Page 17

Introduction of Axis Bank

Government of India allowed new private banks to be established.Axis Bank Ltd. has been
promoted by the largest and Axis Bank established in 1993 was the first of the new private banks
to have begun operations in 1994 after the the best Financial Institution of the country, UTI. The
Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC Rs.
7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.Axis Bank is one of
the first new generation private sector banks to have begun operations in 1994. The Bank was
promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known
as Unit Trust of India),Life Insurance Corporation of India (LIC), General Insurance Corporation
of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of
Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a
view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed
with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the
Parliament, paving the way for the bifurcation of UTI into 2 entities, UTII and UTIII with
effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I
has been transferred and vested in the Administrator of the Specified Undertaking of the Unit
Trust of India (SUUTI), who manages assured return schemes along with 6.75% US64 Bonds,
6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.
The Bank has strengths in both retail and corporate banking and is committed to adopting the
best industry practices internationally in order to achieve excellence.
Axis Bank entered a deal in November 2010 to buy the investment banking and equities units of
Enam Securities for $456 million. Axis Securities, the equities arm of Axis Bank, will merge

KALOL INSTITUTE OF MANAGEMENT

Page 18

with the investment banking business of Enam Securities.As per the deal, Enam will demerge its
investment banking, institutional equities, retail equities and distribution of financial products,
and nonbanking finance businesses and merge them with Axis Securities.

Services offered by the bank:

Personal Banking

Corporate Banking

NRI Banking

Priority Banking

VBV Online purchases using Credit Card

VBV / MSC Online purchases using Debit Card

Awards /Achievements:

Axis bank was awarded Best bank award in the private sector category at NDTV Profit
Business Leadership Awards 2008.

Axis Bank was awarded Best Debt House India award at Euromoney 2008.

The bank was honoured Best Bond House in India award at The Finance Asia 2008.

Axis Bank was awarded Best Domestic Debt House award at the Asia Money 2008.

Business World ,Best Bank Awards Fastest Growing Large Bank

Business Today,Best Bank Awards India's Best Bank, India's Fastest Growing Bank, India's
Most Consistent Bank

ET Intelligence GroupBest Bank 2009

NDTV Profit Business Leadership Awards 2009 Best bank Private Sector

Forbes Fab 50The Best of Asia Pacific's Biggest Listed Company

FE Best Banks AwardBest New Private Sector bank,Rank 1 Talisma Customer

Appreciation Award 2009

D & B Best Bank Awards Best Private Bank

KALOL INSTITUTE OF MANAGEMENT

Page 19

Lafferty Award Best Annual ReportIndia

1.Bank of the Year India The Banker Awards 2011

2.Best Bank in the Private Sector NDTV Profit Business Leadership Awards 2011
3.Best Bank Outlook Money Awards 2011
4.The Best Domestic Bank India The Asset Triple A Country Awards 2011
5.Fastest Growing Bank Bloomberg UTV Financial Leadership Awards 2012
6.Most Productive Private Sector Bank FIBAC 2011 Banking Awards
7.3rd Strongest Bank in Asia Pacific Region by Asian Banker
8.Brand Excellence Award 2011(BFSI Sector) Star News
9.Most Preferred Bank amongst retail consumers CLSA survey on personal banking trends
10.Best Bond House India 2011 by Finance Asia
11.Best Risk Master award (Private Sector Category) FIBAC 2011 Banking Awards

1.Bank of the Year Money Today FPCIL Awards 201213

2.Best Bank CNBCTV18 Indias Best Bank and Financial Institution Awards 2012
3.Best Bank Runner Up Outlook Money Awards 2012
4.Consistent Performer Indias Best Banks 2012 Survey by Business Today & KPMG
5.Fastest Growing Large Bank Dun & Bradstreet Polaris Financial Technology Banking
Awards 2012
6.Fastest Growing Large Bank Businessworld Best Banks Survey 2012
7.Best Domestic Bond House The Asset Triple A Country Awards 2012 Our Bank has
been honored with this award for the third year in a row.
8.India Bond House of the year IFR ASIA Country Awards 2012
9.Deal Maker of the Year in Rupee Bonds Businessworld Magna Awards India's Best Deal
Makers 2012
10.The Best Emerging Bullion Dealing Bank 9th India International Gold Convention
201112
11.Best Acquiring Institution in South Asia Visa LEADER Award at Visas 2012
APCEMEA Security Summit, Bali
12.Gold Shield for Excellence in Financial Reporting in the Private Banks category 201112
ICAI (Institute of Chartered Accountants of India)

KALOL INSTITUTE OF MANAGEMENT

Page 20

1.Axis Bank voted for Most Trusted Private Sector Bank in the country in the Most Trusted
Brands survey 2013 by Brand Equity.
2.Axis Bank ranked no. 1 bank in INDIA in both Primary & Secondary market of corporate
bonds The Asset Benchmark Research
3.Best Debt House in India Euromoney Awards for Excellence 2013
4.Axis Bank ranked No 1 company to work for in the BFSI sector 'The Best Companies to
Work for' survey by Business Today
5.Consistent Performer Indias Best Banks 2013 Survey by Business Today & KPMG
6.Runner up for Best Bank category Outlook Money Awards 2013
7.Fastest Growing Large Bank Business World PWC Survey of Indias best banks 2013
8.Banking frontiers Finnoviti 2013 Awards for FxConnect
9.Ranked No 1 in the IT Biz Award large enterprises category by Express IT Awards
10.Innovation for 2013 for Ladies First card under the Most Innovative Broad Based Product
Offering category IBA Innovations Award
11.Axis Bank featured in Asia's Fab50 companies for 2013 by Forbes Asia
12.Gold Shield for second year in a row for Excellence in Financial Reporting in the Private
Banks category 201213 ICAI (Institute of Chartered Accountants of India)
13.Second Runners Up for Best Financial Inclusion Initiative amongst Private Sector Banks
IBA Banking Technology Awards 2013
14.Second Runners Up for Best Technology Bank of the Year amongst Private Sector Banks
IBA Banking Technology Awards 2013
15.Second Runners Up for Best Risk Management & Security Initiative amongst Private
Sector Banks IBA Banking Technology Awards 2013
16.Second Runners Up for Best Internet Bank amongst Private Sector Banks IBA Banking
Technology Awards 2013

Fastest Growing Large Bank BW Businessworld Magna Awards 2014

KALOL INSTITUTE OF MANAGEMENT

Page 21

Introduction of Bank of Baroda

Bank of Baroda (BoB) was founded by Maharaja Sayajirao Gaekwad in July 1908. It started with
a paid up capital of Rs 10 lakh. Bank of Baroda is a pioneer in various customer centric
initiatives in the Indian banking sector. Bank is amongst first in the industry to complete an all
inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken
along with the change of logo. The initiatives include setting up of specialized NRI Branches,
GenNext Branches and Retail Loan Factories/ SME Loan Factories with an assembly line
approach of processing loans for speedy disbursal of loans.
Ever since its rebranding in 2005, bank has consistently promoted its major strengths viz. large
international presence; technological advancement and superior customer service etc. Bank had
introduced the sub brand BARODA NEXTState of the ArtStraight from the Heart to showcase

KALOL INSTITUTE OF MANAGEMENT

Page 22

how it has utilized technology to nurture long term relationships for superior customer
experience. The sub brand has been reinforced by alternate delivery channels such as internet
banking, ATMs, mobile banking etc and robust delivery outfits like Retail Loan Factories, SME
Loan Factories, City Sales Office etc. Bank?s constant endeavor to strengthen its
branch/ATM network combined with well informed staff offering personalized service at its
various touch points have enhanced customer interactions and satisfaction. Thus the Bank has
firmly positioned itself as a technologically advanced customercentric bank.
Business
Retail banking It offers products and services such as deposits, loans, credit and debit cards,
demat services, remittances, ECS (electronic clearing services, government business, etc.
Rural and agri banking It offers products and services such as deposits, agricultural loans,
lockers services, etc to rural customers and agricultural sector.
Corporate banking It provides project finance, film finance, foreign currency loans, working
capital finance, treasury products, etc to the corporate sector.
SME BoB also offers products and services to SME sector.
Wealth Management It provides wealth management services to companies in areas of
insurance and mutual funds. In insurance it offers services to HDFC and National Insurance
Company. In mutual funds it provides services to UTI, Birla Sun Life, Reliance Mutual Fund,
Sundaram BNP Paribas, Franklin Templeton Investments and Baroda Pioneer Asset
Management Company.
Bank's subsidiaries
Domestic

BOBCARDS Ltd.

BOB Capital Markets Ltd.

Nainital Bank Ltd.

Overseas

Bank of Baroda (Botswana) Ltd.

Bank of Baroda (Kenya) Ltd.

Bank of Baroda (Uganda) Ltd.

KALOL INSTITUTE OF MANAGEMENT

Page 23

Bank of Baroda (Guyana) Ltd.

Bank of Baroda (New Zealand) Ltd

Bank of Baroda (Tanzania) Ltd

Bank of Baroda (Trinidad & Tobago) Ltd.

Bank of Baroda (Ghana) Ltd.

Overseas Representative Offices

Bank of Baroda (Thailand)

Bank of Baroda (Malaysia)

Bank of Baroda (Australia)

Domestic Associate

Baroda Pioneer Asset Management Company Ltd

India First Life Insurance Company Limited

Baroda Uttar Pradesh Gramin Bank

Baroda Rajasthan Gramin Bank

Baroda Gujarat Gramin Bank

Nanital Almora Kshetriya Gramin Bank

JhabuaDhar Kshetriya Gramin Bank

Overseas Associate

IndoZambia Bank Ltd. (Lusaka)

Awards

Bank of Baroda Best Public Sector Bank: MCX and CNBC?TV18,

India?s No. 1 Business medium presented for the first time, the ??India Best
Banks and Financial Institutions Awards? to felicitate India?s best
financial professionals for their contribution in building a robust financial system.

KALOL INSTITUTE OF MANAGEMENT

Page 24

Bank of Baroda receives Award for performance under SME: Bank of Baroda, known for
innovative approach in financing SMEs nationwide has received National Award for
performance under implementation of PMEGP scheme during 201011 in Central Zone.

Bank of Baroda receives Award for Best Initiatives in Inclusive Banking: In FIBAC Banking
Awards 2011, held at Mumbai, Bank of Baroda was given a special award for ??Best
Initiatives in Inclusive Banking.? The award recognizes the Bank's contribution to
reach multiple segments of industry and the general population, increasing the reach of formal
banking a key national priority.

Bank of Baroda Wins Dun & Bradstreet Award: Dun & Bradstreet (D&B), the
world?s leading provider of global business information, knowledge and insight,
announced and presented the ??Dun & Bradstreet Polaris Software Banking Awards
2011? in Mumbai.

Bank of Baroda receives Skoch Award: Bank of Baroda has received Financial Inclusion
Award 2011 instituted by Skoch Consultancy Services. The award has been given to the bank
for an endeavour to tap the potential asset of unskilled unemployed youth of India to impart
them training by setting up Baroda Swarojgar Vikas Sansthan (BSVS) Baroda RSETI
Centres

Bank of Baroda bags Bank of the year 2010 (for India): Bank of Baroda was awarded with the
'Bank of Year 2010 India' in The Banker Awards 2010 of 'The Banker' Magazine, UK.

Bank of Baroda bags three awards from ABCI: Bank of Baroda bagged three awards from
Association of Business Communicators of India in an award function held at Mumbai.

Bank of Baroda bags the Best Bank 2010 Award: Bank of Baroda has been conferred upon
Best Bank 2010 award by the prestigious financial magazine, Business India in recognition of
its consistent performance.

Bank of Baroda has been conferred upon Best Bank 2010 award by the prestigious financial
magazine, Business India in recognition of its consistent performance: Bank of Baroda bags
Dalal Street DSIJ PSU Award: Bank of Baroda bags Dalal Street DSIJ PSU Award.

Bank of Baroda bags four Awards of ABCI for the year 2009

Bank of Baroda receives Millennium National Rajbhasha Shield

Bank of Baroda receives ??Bank of the year?? Award

Bank awarded for its 'Global Business Development'

KALOL INSTITUTE OF MANAGEMENT

Page 25

Bank of Baroda bags three Awards of ABCI for the year 2008

Association of Business Communicators of India (ABCI) Awards (2006)

Bank of Baroda awarded the Outlook Money NDTV Profit Awards 2007.

AMITY Leadership Award for Sectoral Excellence in Banking

SPJIMR Marketing Impact Awards (SMIA) 2007

The Employer Branding Awards 2007

Association of Business Communicators of India (ABCI) Award

OBJECTIVE OF THE PROJECT

To gain the knowledge of products and services of Axis Bank Ltd. And
Bank Of Baroda and compare it
To identify the perception of consumer about their banks with comparison to
other banks.
Recommendations to increase customer satisfaction level.

Because of the following reasons, I prefer this project work to get

the knowledge of the banking system.
Banking is an essential industry.
It is where we often wind up when we are seeking a problem in financial
crisis and money related query.
Banking is one of the most regulated businesses in the world.
Banks remain important source for career opportunities for people.

KALOL INSTITUTE OF MANAGEMENT

Page 26

 It is vital system for developing economy for the nation.

Banks can play a dynamic role in delivery and purchase of consumer
durables

BASIC COMPARISION
II. Productivity
Productivity is the ratio of what is produced to what is required to produce. In the banking scenario productivity can be
measured by profit per employee, business per employee. Productivity is a very important measure of efficiency of
banks because it means that the firm can meet its obligations to employees, shareholders, and governments (taxes
and regulation), and still remain competitive in the market place.

These ratios can be misleading as banks can improve these ratios by reducing their number of their employees
during the time of recession. This is evident since asset base and profit levels declined during 2009-10 for new
private sector banks but still the above ratios is showing a continuous increasing trend.

III. Capital adequacy ratio

Capital Adequacy signifies the banks ability to maintain capital with the nature and extent of all types of risk and
the ability of management to identify, measure, monitor and control these risks. It also tells about the ability of bank
to absorb a reasonable amount of loss and comply with statutory Capital requirements. Currently Reserve Bank of
India (RBI) prescribes banks to maintain Capital Adequacy Ratio (CAR) of 9% with regard to credit risk, market
risk and operational risk on an ongoing basis, as against 8% prescribed in BASEL framework.

KALOL INSTITUTE OF MANAGEMENT

Page 27

The Capital Adequacy ratio (BASEL-II) of new private sector banks is way above RBIs minimum requirement of
9%. This shows that private banks are in comfortable position to absorb losses since they have more capital to cover
for their risk weighted assets and they have less risky assets in their portfolio for a fixed capital base.

IV. Growth of bank

Every bank aspires to grow and its growth can be judged by various parameters like growth in balance sheet size i.e.
asset base, total income and many others.
% Growth in Balance Sheet Size
2010
2011
New Private
10.86%
23.51%
Sector Banks
Public Sector
17.93%
19.21%
Banks

% Growth in Total Income

2010
2011
-2.19%
14.63%
12.46%

16.71%

The public sector banks asset base and income grew at an increasing rate in the last 2 years whereas new private
sector banks faced many fluctuations mainly due to recession. But the growth of these banks was phenomenal
during 2010-11 that shows their ability to recover faster after such a phase.

V. Asset Quality
Asset Quality reflects the amount of existing credit risk associated with the loan and investment portfolio as well as
off-balance sheet activities. The asset quality of banks can be judged by the non-performing assets (NPA) ratio.

KALOL INSTITUTE OF MANAGEMENT

Page 28

However there is huge difference in asset qualities of public & new private sector banks because the public sector
banks have higher NPAs in services sector. The NPAs in other sectors like Agriculture, Industry and Personal Loans
are almost similar for these banks. The asset quality of a bank directly affects its credit rating.

The Off-Balance Sheet (BS) activities under the purview of New Private Sector banks are astoundingly large as
compared to public sector banks, being the liability of these banks on outstanding derivative contracts like Interest
rate swaps, currency options and interest rate futures. This makes their business highly susceptible to market risk.

VI. Efficiency of management

Several indicators are used to measure the efficiency of the management for example ratio of non-interest exp to
total assets which explains the management controls on operating expenses. Similarly efficiency ratios like Asset

KALOL INSTITUTE OF MANAGEMENT

Page 29

Turnover ratio can be used to assess how efficiently company is using its assets to earn the revenue

The efficiency ratios of new private sector banks are better than public sector banks which eventually lead to
enhanced bottom line. The asset turnover of both sectors banks is decreasing over the last 3 years which is mainly
due to a combination of decrease in non-interest income and increase in asset base.

VII. Earnings

KALOL INSTITUTE OF MANAGEMENT

Page 30

The above two graphs signifying the new private sector banks have better ratios since: a) The interest expense is less
as compared to interest income due to better asset liability management. b) The share of fee income is more in total
income which reflects that banks have other options to earn money like in exchanges, commissions, brokerages etc.

VIII. Liquidity
The inadequacy of liquidity in a bank causes liquidity risk is two-dimensional: risk of being unable to fund portfolio
of assets at appropriate maturity and rates (liability dimension) and the risk of being unable to liquidate assets in a
timely manner at a reasonable price (asset dimension).

KALOL INSTITUTE OF MANAGEMENT

Page 31

The credit deposit (C-D) ratio of any bank signifies the proportion of loan-assets created by banks from the deposits
received, higher the ratio, better it is for the banks. Similarly higher is the investment deposit (I-D) ratio good it is
for the banks as it increases the opportunity of earning but on the other hand may also create liquidity problems.
Therefore it is essential for the banks to have a stock of short-term investments to ensure higher liquidity.

Chapter : 2 litracture review

1) Title: An insight into service attributes in banking sector
Author: Prabhakaran and Satya
Published year:2003
Abstract:
Customer satisfaction has been considered the essence of success in todays highly competitive
banking industry. Prabhakaran and Satya (2003) mentioned that the customer is the king.
Heskettetal. (1997) argued that profit and growth are stimulated primarily by customer loyalty.
Ndubisi (2005), Gee et al. (2008) and Pfeifer (2005) pointed out that the cost of serving a loyal
customer is five or six times less than a new customer. Several researchers including Tariq and
Moussaoui (2009), Han et al. (2008) and Ehigie (2006) found that loyalty is a direct outcome of
customer satisfaction. Generally speaking, if the customers are satisfied with the provided goods
or services, the probability that they use the services again increases (East, 1997). Also, satisfied
customers will most probably talk enthusiastically about their buying or the use of a particular
service; this will lead to positive advertising (File and Prince, 1992; Richens, 1983). On the other
KALOL INSTITUTE OF MANAGEMENT

Page 32

hand, dissatisfied customers will most probably switch to a different brand; this will lead to
negative advertising (Nasserzadeh et al., 2008). The significance of satisfying and keeping a
customer in establishing strategies for a market and customer oriented organization cannot be
ignored (Kohli and Jaworski, 1990).

2)Title: A Multiple Item Scale for Measuring Customer Perceptions of Service Quality
Author: Tse and Wilton
Published year:1998
Abstract:
According to Tse and Wilton (1988) Customer satisfaction is, the consumers response to the
evaluation of the perceived discrepancy between prior expectations and the actual performance
of the product perceived after its consumption. The service quality variables identified by
Parasuraman et al., (1994) are reliability, responsiveness, competence, accessibility, courtesy,
communication, credibility, security, understanding and tangibility. Alfred and Addam (2001)
investigated attitudes using fifteen service quality variables. In the present study, the service
quality in retail banking is studied using variables drawn from the reviews (Cronin and Taylor
1992; Zillur Rahman, 2005; Verma and Vohna 2000; Mushtag A Bhat, 2005). (Satya, 2003)
(Wilton, 1988)

3)Title: Journal of Business and Management

Author: Tiwary
Published year: 2012
Abstract:
In the banking sector it is necessary to increased adoption of technology to better meet customer
requirements, improve efficiencies, reduce costs and ensure customer delight and it was the
private sector and foreign banks which established the technological revolution in Indian banking
and considering the fact that in the new economy, mind share leads to market share and mind
share is influenced not only by the promotions and advertisements but more importantly on
favorable customer perception which in turn is based on satisfaction with regard to products,
services and interaction ( (Tiwary, 2012)).

KALOL INSTITUTE OF MANAGEMENT

Page 33

4)Title: Determining the relative importance of critical factors in delivering service quality of
banks: an application of dominance
analysis in SERVQUAL model
Author: Vijay M. Kumbhar
Published year: July-Aug. 2012
Abstract:
The private sector banks are providing more satisfied ATM services then public sector banks and
the customer perception about Productivity, Security and Sensitivity, Cost Efficiency, Problem
Handling, Compensation and Contact services related to ATM service is very less in both the
public sector and privates sector banks, Therefore both kinds of banks should be aware about
these facets of ATM service to improve customers satisfaction (Vijay M. Kumbhar).

5)Title: Services Marketing, International edition

Author: Rengasamy et
Published year:2005
Abstract:
The entry of information technology into the banking industry has created a revolution and it has
prompted commercial banks of India to design world-class customer service systems and
practices, to meet thegrowing customer needs. It is interesting to note that the results are
consistent with the previousstudiesconducted on customer service aspects, and it has been
observed that the foreign and the new generation privatesector banks are serving the customers
better (Rengasamy et, al).

6)Title: A Multiple Item Scale for Measuring Customer Perceptions of Service Quality
Author: Parasuraman, Valerie Zeithaml and Berry
Published year:
Abstract:
To measure customer satisfaction with different aspects of service quality, Parasuraman, Valerie
Zeithaml and Berry developed a survey research instrument called SERVQUAL. It is based on

KALOL INSTITUTE OF MANAGEMENT

Page 34

the premise that the customers can evaluate a firms service quality by comparing their
perceptions of its service with their own expectations. SERVQUAL is seen as a measurement
tool that can be applied across broad spectrum of service industries. In its basic form, the scale
contains 24 perception items and a series of expectation items, reflecting the five dimensions of
service quality. Their findings suggest that, in reality, SERVQUAL scores measure only two
factors: intrinsic service quality (resembling what is termed functional quality) and extrinsic
service quality (which refers to the tangible aspects of service delivery and resembles to some
extent what Gronroos refers to as technical quality).Generic dimensions customers use to
evaluate service quality are credibility, security, access communication, understanding the
customer, tangibles, reliability, responsiveness, competence, courtesy

KALOL INSTITUTE OF MANAGEMENT

Page 35

Research Methodology
Research Design
Research Approach Quantitative Approach will be used for the purpose of this study.
Research Type Descriptive type of research will be preferred.

Sources of Data
Both Primary and Secondary data will be used to gather information for the purpose of this
study. Secondary data has been and will be collected through Magazines, Library, Websites, and
Books whereas Primary data will be collected through Survey Method.

Data Collection Tool:

A structured questionnaire will be used as a data collection Instrument.

Sample Design
Sample Type: Non Probability
Sample Method: Convenience Sampling
Sample Size -200
Sample Unit- customer who are using bank services in Gandhnagar.

Scope of the study:

The study will aim at finding out the Impact of private sector bank and public sector bank on
Satisfaction of customer who use the service of selected bank within Ghandhinagar.

Probable Data Analysis and Findings:

There will be a significant relationship between HRD climate and Job Satisfaction and any
positive change in HRD climate will lead to high level of Satisafction. The Positive HRD
Climate will have a strong influence on overall Organization Effectivemess.

KALOL INSTITUTE OF MANAGEMENT

Page 36

Refrance:

Waqar ul Haq, (2012). IOSR Journal of Business and Management (IOSRJBM)ISSN: 2278487X Volume 1, Issue 5, July-Aug., PP 01-05www.iosrjournals.org
A. Parasuraman, Valarie A. Zeithaml, and Leonard Berry, SERVQUAL: A Multiple Item Scale
for Measuring Customer Perceptions of Service Quality, Journal of Retailing 64 (1988).
Prabhakaran, S. and Satya, S. (2003), An insight into service attributes in banking sector,
Journal of Services Research, Vol. 3 No. 1, pp. 157-69.
Zeithaml, V.A. and Bitner, M.J. (1996), Services Marketing, International edition, McGrawHill,London.
Kumar, M., Kee, F.T. and Manshor, A.T. (2009), Determining the relative importance of
critical factors in delivering service quality of banks: an application of dominance analysis in
SERVQUAL model, Managing Service Quality, Vol. 19 No. 2, pp. 211-28.

KALOL INSTITUTE OF MANAGEMENT

Page 37