COMPARATIVESTUDYOFCONSUMERPERCEPTION

REGARDINGDIFFERENTSERVICESPROVIDEDBY
PUBLICANDPRIVATESECTORBANKS

Submittedinpartialfulfillmentof
Thedegreeof
BachelorofBusinessAdministration
Tobeawardedby
PanjabUniversity
Session(20142015)

SupervisedBy: SubmittedBy:
Mr.AshokSingla

BrahmGupta
BBA3rdYear
Univ.RollNo.

14112000350

ARYACOLLEGEFORBOYS,CIVILLINES,LUDHIANA

TO WHOMSOEVER IT MAY CONCERN

This is to certify that the project report titled Comparative study of Consumer
Perception regarding Different Services provided by Public and Private Sector
Banks carried out by Mr. Brahm Gupta S/o Sh. Sanjay Gupta has been
accomplished under my guidance & supervision. This project is being submitted by
him/her in the partial fulfilment of the requirements for the award of the Bachelor of
Business Administration from Panjab University, Chandigarh.
His/ Her project represents his/her original work and is worthy of consideration for
the award of the degree of Bachelor of Business Administration.
___________________________________
Ashok Singla
Date:

DECLARATION
I, Brahm Gupta, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere for the
requirement of a degree programme.

_______________________
Brahm Gupta
(Registration No. 14112000350)
Date:__________________

ACKNOWLEDGEMENT
This work is essentially the result of final year project which is mandatory to be taken
on the partial fulfillment of the course of B.B.A. The project Comparative study of
Consumer Perception regarding Different Services provided by Public and
Private Sector Banks, is the first life venture for me in the field of marketing.
So, I hereby wish to express my gratitude to those who generously helped me to
colour the mosaic of this research work with the titles of their knowledge and
expertise.
I would like to thanks Dr. R.C. Tejpal (Principal) for providing me such a great
opportunity and I take this opportunity to express deep sense of gratitude and
indebtedness to my teacher, Mr. Ashok Singla who supervised my work with his able
guidance, suggestions and constructive criticism.
While expressing the gratitude, my debts are numerous than identified here. I cannot
forget to mention a word about my teachers, parents and friends who provided me the
help and co-operation in undertaking this project.
Brahm Gupta

TABLEOFCONTENTS

Sr.No.

ChapterName

PageNo.
1

Introduction

ReviewofLiterature

Need,Objective,Scope&Methodology

Analysisofdata

Summary,Conclusion,Limitations&Recommendations

References

Appendix

CHAPTER - 1
INTRODUCTION
1.1 Introduction to Banking
Bank is defined in many ways by various authors in the book son economics and
commerce. It is very difficult to define a bank; because a bank performs multifarious
functions may be defined in many ways according to their functions. The evolution of
different types of banks, each specializing in a particular field, gives emphasis on each
and every kind of bank. A general and comprehensive definition to cover all types of
banking institutions would be unscientific and probably impossible. Each type of bank
should have its own definition, explaining its specialized functions. Legislators have
understood this difficulty and that is why the bill of exchange Act 1882 (England)
defines
A bank includes a body of persons, whether incorporated or not, who carry on the
business of banking
From this definition it is clear to us that any institution, which performs the various
banking functions, may be termed as bank. But in practice it is found that many
banking functions wary from time to time and country to country. It is not possible on
the part of a single bank to perform all the banking functions at a time. So there
originated numbers of specialized banks with the objective of performing one or more
functions. As for example, Central Bank, Commercial bank, Industrial Bank,
Agricultural Bank, Co-operative Bank etc., are seen in the practical field.
Dr. Herbert L. Hart has defined a banker as
A banker is one who in the ordinary course of business honours cheques drawn upon
him by persons for whom he receives money on current account
According to Sir John Paget
No one and nobody corporate and otherwise can be a banker who does not (i) take
deposit accounts (ii) take current accounts (iii) issue and pay cheques drawn upon
him(iv) collect cheques crossed and uncrossed for his customers
Hilton banking commission defines bank or banker in the following words:

Every person, firm or company using in the description or its title, bank or banker or
banking and accepting deposits of money subject to withdrawal by cheque, draft or
order
In view of the above definitions, a simple and short definition can be given as
Bank is an institution, which deals in money and credit
According to this precise definition a bank accepts deposits from public and makes
advances and loans to them. In practice bank receives deposits of money in savings
and current accounts at lower rate of interest or profit and gives on credit to needy
persons and businessmen at a higher rate of interest or profit. It also transfers money
for the clients from one city or country to another and also performs various other
agency services for earnings.
1.2 Banking in India
Banking in India in the modern sense originated in the last decades of the 18th
century. The first banks were Bank of Hindustan (1770-1829) and The General Bank
of India, established 1786 and since defunct.
The largest bank, and the oldest still in existence, is the State Bank of India, which
originated in the Bank of Calcutta in June 1806, which almost immediately became
the Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras, all three of which were established
under charters from the British East India Company. The three banks merged in 1921
to form the Imperial Bank of India, which, upon India's independence, became the
State in 1955. For many years the presidency banks acted as quasi-central banks, as
did their successors, until the Reserve Bank of India was established in 1935.
In 1969 the Indian government nationalized all the major banks that it did not already
own and these have remained under government ownership. They are run under a
structure know as 'profit-making public sector undertaking' (PSU) and are allowed to
compete and operate as commercial banks. The Indian banking sector is made up of
four types of banks, as well as the PSUs and the state banks; they have been joined
since the 1990s by new private commercial banks and a number of foreign banks.
Banking in India was generally fairly mature in terms of supply, product range and
reach-even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India

expanding its branch network and through the National Bank for Agriculture and
Rural Development with things like microfinance.
Indian Banking Industry currently employees 1,175,149 employees and has a total of
109,811 branches in India and 171 branches abroad and manages an aggregate deposit
of 67504.54 billion (US$1.1 trillion or 820 billion) and bank credit of 52604.59
billion (US$880 billion or 640 billion). The net profit of the banks operating in India
was 1027.51 billion (US$17 billion or 12 billion) against a turnover of 9148.59
billion (US$150 billion or 110 billion) for the fiscal year 2012-13.
1.3 History of banking in India
In ancient India there is evidence of loans from the Vedic period (beginning 1750
BC). Later

during

the Maurya

dynasty (321

to

185

BC),

an

instrument

called adesha was in use, which was an order on a banker desiring him to pay the
money of the note to a third person, which corresponds to the definition of a bill of
exchange as we understand it today. During the Buddhist period, there was
considerable use of these instruments. Merchants in large towns gave letters of credit
to one another.
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralysing banking activities for months. India's independence marked the
end of a regime of the Laissez-faire for the Indian banking. The Government of
India initiated measures to play an active role in the economic life of the nation, and
the Industrial Policy Resolution adopted by the government in 1948 envisaged
a mixed economy. This resulted into greater involvement of the state in different
segments of the economy including banking and finance.
The major steps to regulate banking included:
The Reserve Bank of India, India's central banking authority, was established in April
1935, but was nationalised on 1 January 1949 under the terms of the Reserve Bank of
India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India".
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.
8

Nationalization in the 1960s

Despite the provisions, control and regulations of the Reserve Bank of India, banks in
India except the State Bank of India (SBI), continued to be owned and operated by
private persons. By the 1960s, the Indian banking industry had become an important
tool to facilitate the development of the Indian economy. At the same time, it had
emerged as a large employer, and a debate had ensued about the nationalization of the
banking industry. Indira Gandhi, the then Prime Minister of India, expressed the
intention of the Government of India in the annual conference of the All India
Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."[7] The
meeting received the paper with enthusiasm.
Thereafter, her move was swift and sudden. The Government of India issued an
ordinance ('Banking Companies (Acquisition and Transfer of Undertakings)
Ordinance, 1969') and nationalised the 14 largest commercial banks with effect from
the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in
the country. 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 dose 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 dose of nationalisation, the Government of India controlled
around 91% of the banking business of 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.
Liberalization in the 1990s
In the early 1990s, the then government embarked on a policy of liberalization,
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
9

generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, UTI Bank (since renamed Axis), ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalised 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 set up 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 74% with some restrictions.
The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 464 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 traditional banks. All this led to the retail boom in India. People
demanded more from their banks and received more.
Current period
All banks which are included in the Second Schedule to the Reserve Bank of India
Act, 1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks
and Scheduled Co-operative Banks. Scheduled Commercial Banks in India are
categorised into five different groups according to their ownership and/or nature of
operation. These bank groups are:
State Bank of India and its Associates
Nationalised Banks
Private Sector Banks
Foreign Banks
Regional Rural Banks.
In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalised
Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks
and Scheduled Urban Cooperative Banks.
By 2010, banking in India was 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,
10

Indian banks are considered to have clean, strong and transparent balance sheets
relative to other banks in comparable economies in its region. The Reserve Bank of
India is an autonomous body, with minimal pressure from the government.
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. One may also
expect M&As, takeovers, and asset sales.
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 vetted by them.
In recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connexion with housing, vehicle and
personal loans. There are press reports that the banks' loan recovery efforts have
driven defaulting borrowers to suicide.
1.4 Adoption of banking technology
The IT revolution has had a great impact on the Indian banking system. The use of
computers has led to the introduction of online banking in India. The use of
computers in the banking sector in India has increased many fold after the economic
liberalisation of 1991 as the country's banking sector has been exposed to the world's
market. Indian banks were finding it difficult to compete with the international banks
in terms of customer service, without the use of information technology.
The RBI set up a number of committees to define and co-ordinate banking
technology. These have included:
In 1984 was formed the Committee on Mechanisation in the Banking Industry
(1984) whose chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of
India.

The

major

recommendations

of

this

committee

were

introducing MICR technology in all the banks in the metropolises in India. This
provided for the use of standardized cheque forms and encoders.
11

In 1988, the RBI set up the Committee on Computerisation in Banks (1988) headed
by Dr. C Rangarajan. It emphasized that settlement operation must be computerized in
the clearing houses of RBI in Bhubaneshwar, Guwahati, Jaipur, Patna and
Thiruvananthapuram. It further stated that there should be National Clearing of intercity cheques at

Kolkata, Mumbai, Delhi, Chennai and

MICR

should

be

made

operational. It also focused on computerisation of branches and increasing

connectivity among branches through computers. It also suggested modalities for
implementing on-line banking. The committee submitted its reports in 1989 and
computerisation began from 1993 with the settlement between IBA and bank
employees' associations.
In 1994, the Committee on Technology Issues relating to Payment systems, Cheque
Clearing and Securities Settlement in the Banking Industry (1994) was set up under
Chairman W S Saraf. It emphasized Electronic Funds Transfer (EFT) system, with the
BANKNET communications network as its carrier. It also said that MICR clearing
should be set up in all branches of all those banks with more than 100 branches.
In 1995, the Committee for proposing Legislation on Electronic Funds Transfer and
other Electronic Payments (1995) again emphasized EFT system.
Total numbers of ATMs installed in India by various banks as on end June 2012 is
99,218. The New Private Sector Banks in India are having the largest numbers of
ATMs, which is followed by off-site ATMs belonging to SBI and its subsidiaries and
then by Nationalised banks and Foreign banks. While on site is highest for the
Nationalised banks of India.

12

Table no. 1
Branches and ATMs of Scheduled Commercial Banks as on end March 2013

1.5 Types of Banks

Central bank
Development Bank
Investment Bank
Cooperative Credit Bank
Regional Rural Bank
Non Banking Financial Companies
Central Bank
13

The money market that acts as the central monetary authority of the country, serving
as the government bank as well as the bankers bank is known as a central bank of the
country. The main functions of central bank of a country are functions of note issue,
bankers to government, bankers bank etc.The RBI as the central bank of the country
is the centre of the Indian financial and monetary system. It has been guiding,
monitoring, and regulating, controlling, and promoting destiny of the IFS. It is quite
young compared with such central banks as the Bank of England, Risks bank of
Sweden, and the Federal Reserve Board of the U.S.
Main Functions of The Reserve bank of India
As the central banking authority of India, the reserve Bank of India performs the
following traditional functions of the central bank:
It provides currency and operates the clearing system for the government and
banks.
It formulates and implements monetary and credit policies.
It functions as the governments and bankers bank
It supervises the operations of credit institutions.
It regulates foreign exchange transactions.
It moderates the fluctuations in the exchange value of the rupee.
In addition to the traditional functions of the central banking authority, the Reserve
bank of India performs several functions aimed at developing the Indian financial
system:
It seeks to integrate the unorganized financial sector with the organized
financial sector.
It encourages the extension of the commercial banking system in the rural
areas.
It influences the allocation of credit.
It promotes the development of new institutions.
Development Banks
A development bank may be defined as a financial institution concerned with
providing all types of financial assistance to business units in the form of loans,
underwriting, investment and guarantee operations and promotional activities14

economic development in general and industrial development in particular.A

development bank is basically a term lending institution. It is a multipurpose financial
institution with a broad development outlook. The concept of development banks in a
post independence phenomenon in India. With the end of II World War there was an
urgent need for speed industrial development in India. The usual agencies that
provided finance for large industries were inadequate. So the govt. of India came
forward to set-up a series of financial institution to provide funds to industries. The
industrial finance corporation of India, the first development bank was established in
1948. Subsequently many other institutions were set-up. Ex. IDBI, IFCI, SIDBI etc.
Investment Banks
Financial intermediaries that acquire the savings of people and direct these funds into
the business enterprises seeking capital for the acquisition of plant and equipment and
for holding inventories are called investment banks.
Features:-Long term financing, Security, merchandiser, Security middlemen, Insurer,
Underwriter
Functions: - Capital formation, Underwriting, Purchase of securities, Selling of
securities, Advisory services, Acting as dealer.
Cooperative Banking Sector
These banks play a vital role in mobilizing savings and stimulating agricultural
investment.Co-operativecredit institutions account for the second largest proportion of
44.6% of total institutional credit of Rs.3854000 corer to agricultural and allied
activities in the rural sector in 1998 to 99.
Types of Co-operative Banking sector
The co-operative sector is very much useful for rural people. The co-operative
banking sector is divided into the following categories.
State co-operative Banks
Central co-operative banks
Primary Agriculture Credit Societies

15

Non Banking Finance companies

According to RBI it means financial institutions which is a company and a non
banking institution and which has as its principal business the receiving of deposits
under any schemes or arrangement or in any other manner or lending in any manner.
Merchant Banks
Institution that render wide range of services such as the management of customers
securities, portfolio management, counseling, insurance, etc are called Merchant
Banks.
Functions: - Sponsoring issues, Loan syndication, Servicing of issues, Portfolio,
management, arranging fixed deposits, helps in merger& acquisition.
Commercial Banks
Commercial banks comprising public sector banks, foreign banks, and private sector
banks represent the most important financial intermediary in the Indian financial
system.
The changes in banking structure and control have resulted dueto wider geographical
spread and deeper penetration of rural areas, higher mobilization of deposits,
reallocation of bank credit to priority activities, and lower operational autonomy for a
bank management.
The largest commercial Banks in India, (SBI), was set up in 1955 when the Imperial
Bank was nationalized and merged with some banks of the princely states. In 1969, in
one fell swoop, the fourteen largest privately owned commercial banks were
nationalized. Subsequently, several other privately owned commercial banks were
nationalized. As a result of these actions, public sector commercial banks, dominate
the commercial banking scene in the country.
1.6PublicSectorBanks
AmongthePublicSectorBanksinIndia,UnitedBankofIndiaisoneofthe14
majorbanks,whichwerenationalizedonJuly19,1969.Itspredecessor,inthePublic
Sector Banks, the United Bank of India Ltd., was formed in 1950 with the
amalgamationoffourbanksviz.CamillaBankingCorporationLtd.(1914),Bengal

16

CentralBankLtd.(1918),CamillaUnionBankLtd.(1922)andHooghlyBankLtd.
(1932).
OrientalBankofCommerce(OBC),GovernmentofIndiaUndertakingoffers
Domestic, NRI and Commercial banking services. OBC is implementing a
GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District
(Rajasthan)disbursingsmallloans.ThisPublicSectorBankIndiahasimplemented
14pointactionplanforstrengtheningofcreditdeliverytowomenandhasdesignated
5branchesasspecializedbranchesforwomenentrepreneurs.
ThefollowingarethelistofPublicSectorBanksinIndia

AllahabadBank

AndhraBank

BankofBaroda

BankofIndia

BankofMaharastra

CanaraBank

CentralBankofIndia

CorporationBank

DenaBank

IndianBank

IndianOverseasBank

OrientalBankofCommerce

Punjab&SindBank

PunjabNationalBank

SyndicateBank

UCOBank

UnionBankofIndia

UnitedBankofIndia
17

VijayaBank

ListofStateBankofIndiaanditssubsidiary,aPublicSectorBanks

StateBankofIndia
o

StateBankofBikaner&Jaipur

StateBankofHyderabad

StateBankofIndore

StateBankofMysore

StateBankofSaurastra

StateBankofTravancore

1.7Privatesectorbanks
PrivatebankinginIndiawaspracticedsincethebeginningofbankingsysteminIndia.
ThefirstprivatebankinIndiatobesetupinPrivateSectorBanksinIndiawas
IndusIndBank.ItisoneofthefastestgrowingBankPrivateSectorBanksinIndia.
IDBIranksthetenthlargestdevelopmentbankintheworldasPrivateBanksinIndia
andhaspromotedworldclassinstitutionsinIndia.
ThefirstPrivateBankinIndiatoreceiveaninprincipleapprovalfromtheReserve
BankofIndiawasHousingDevelopmentFinanceCorporationLimited,tosetupa
bankintheprivatesectorbanksinIndiaaspartoftheRBI'sliberalizationofthe
IndianBankingIndustry.ItwasincorporatedinAugust1994asHDFCBankLimited
with registered office in Mumbai and commenced operations as Scheduled
CommercialBankinJanuary1995.
INGVysya,yetanotherPrivateBankofIndiawasincorporatedintheyear1930.
Bangalorehasaprideofplaceforhavingthefirstbranchinceptionintheyear1934.
Withsuccessiveyearsofpatronageandconstantlysettingnewstandardsinbanking,
INGVysyaBankhasmanycreditstoitsaccount.
ListofPrivateBanksinIndia

BankofPunjab
18

BankofRajasthan

CatholicSyrianBank

CenturionBank

CityUnionBank

DhanalakshmiBank

DevelopmentCreditBank

FederalBank

HDFCBank

ICICIBank

IDBIBank

IndusIndBank

INGVysyaBank

Jammu&KashmirBank

KarnatakaBank

KarurVysyaBank

LaxmiVilasBank

SouthIndianBank

UnitedWesternBank

PROFILES OF BANK

About - HDFC Bank Limited, India

Incorporated in August 1994 as HDFC Bank Limited, the bank now has a wide
network of over 531 branches across 228 cities in India, and over a thousand
networked ATM's.

19

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an in principle approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBIs liberalization of the Indian
Banking Industry. The bank was incorporated in Aug 1994 in the name of HDFC
Bank Limited, with its registered office in Mumbai. The bank commenced operations
as a Scheduled Commercial Bank in Jan 1995.
HDFC is Indias premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1997, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the clear market leader in mortgages in India. Its outstanding loan portfolio
covers a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client base
for its housing related credit facilities. With its experience in the financial markets, a
strong market reputation, large shareholder base and unique customer franchise,
HDFC was ideally positioned to promote a bank and the Indian Environment.

CAREERS
HDFC Bank is India's leading private sector bank. Or it could be because HDFC
Bank was rated so highly by leading national and international magazines such as
Business India, Business Today, Euro money, Finance Asia and Forbes Global, to
name a few. It could also be because we see the wide range of opportunities that we
offer in Branch Banking, Retail Assets, Product Development, Operations, Marketing,
Treasury, Equities, Corporate Banking, Cash Management Services, Custody and
Depositories etc.
HDFC Bank is a young and dynamic bank, A bank with a dedicated team determined
to accomplish the bank's mission of becoming a world-class Indian bank as early as
possible. The Bank's strategic framework has provided us with four core values customer focus, operational excellence, product leadership and people. Finally, we
believe that ultimately, the success of our bank resides in the exceptional quality of
our people and their extraordinary efforts. For this reason, we are committed to hiring,
developing, motivating and retaining the best people in our industry.
20

HDFC Bank recognizes the importance of good corporate governance, which is

generally accepted as a key factor in attaining fairness for all stakeholders and
achieving organizational efficiency. This Corporate Governance Policy, therefore, is
established to provide a direction and framework for managing and monitoring the
bank in accordance with the principles of good corporate governance.

HDFC Bank maintains the web-site http://www.hdfcbank.com ("the Site") to provide

you with information about HDFC Bank services and products and to facilitate
communication with HDFC Bank. The visitors to the Site are required to read the
below terms and conditions and your use of the Site constitutes your acceptance and
agreement to be bound by such terms and conditions including those excluding the
Bank's liability

21

MISSION
HDFC Banks began operations in 1995 with a simple mission to be a World Class
Indian Bank. We realized that only a single-minded focus on product quality and
service excellence would help us get there. Today, the bank is on the way towards that
goal. It is extremely gratifying that its efforts towards providing customer
convenience have been appreciated both nationally and internationally.

The banks aim is to build a sound customer franchise across distinct

businesses so as to be the preferred provider of banking services in the niche
segments that the bank operates in and to achieve healthy growth in
profitability, consistent with the banks risk appetite.

The Bank aims to assure the highest level of ethical standards, professional
integrity and regulatory compliance.

Terms & Conditions

HDFC Bank does not warrant the accuracy, adequacy or completeness of the
information and materials contained in these pages, including text, graphics,
links and other items, and expressly disclaims liability for errors or omissions
of any kind.

Copyright: All information, content, materials, products (including, but not

limited to text, content, photographs, graphics, video and audio content) is
protected by copyright in the favor of HDFC Bank under applicable copyright
laws and is also protected otherwise under general intellectual property law.
All information submitted to HDFC Bank through the Site shall be deemed to
be the property of HDFC Bank, and HDFC Bank shall be free to use any
ideas, concepts, know-how or techniques provided by a visitor at the Site, in
any manner whatsoever. HDFC Bank is not bound by the obligation of
confidentiality regarding submitted information unless the visitor has a direct
customer relationship with the Bank or unless specifically agreed or required
by law.

Personal and Non-commercial use restriction: You may not copy, reproduce,
sell, redistribute, publish, enter into a database, display, perform, modify,
transmit, license, create derivatives from, transfer or in any way exploit any
22

part of any information, content, materials, services available from or through

the Site, except that you may download material for your own personal, noncommercial use.

Unlawful Use Restriction: As a condition of your use of the Site you warrant
that you will not use the Site for any purpose that is unlawful, or prohibited by
these terms and conditions. You may not use the Site in any manner that could
damage, disable or impair the Site or interfere with any other party's use or
enjoyment of the Site.

Not all the products and services are available in all geographic areas and you
may not be eligible for all the products or services offered by HDFC Bank on
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HDFC Bank proposes to use "cookies" (Cookies are small data files that a
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HDFC Bank shall not be considered in default of its obligations hereunder if

performance of such obligations is prevented or delayed by causes beyond its
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Modification of these Terms of Use- HDFC Bank reserves the right to change
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the right to modify any features of any products or services offered by HDFC
Bank on the Site and any information found on the Site. You are responsible
for regularly reviewing these terms and conditions. Continued use of the Site
after any such changes shall constitute your consent to such changes.

23

The Courts in Mumbai alone shall have exclusive jurisdiction as regards any
claims or matters arising out of dealings with HDFC Bank , and all disputes
will be governed by the laws of India

These terms and conditions are in addition and not in derogation of the
applicable terms and conditions relating to the services that you may obtain,
including without limitation Net Banking.

ORGANIZATION
HDFC Bank is a two tier organization, head office and Branch Office. It has been
done so as to make decision making more responsive to the needs of the customers.
The branches are directly linked to the head office at Mumbai.

HDFC BANK HIGHLIGHTS

Ranked as best Domestic Bank in India as per Forbes World Best for 2001
amongst Best Managed Indian Companies out of 300 best small companies of
the world.

The best Bank in India as per Euro money July, 2000.

A scheduled commercial bank promoted by Nat West Bank, U.K. and HDFC
in 1994.

The Bank has strategic Business Alliance with Chase Manhattan Bank, largest
bank of USA.

Open an account in a city and operate it from any branch all over the world.

FD cum savings account linked to ATM providing liquidity convenience and

returns.

Operate your account from the comfort of your home/office anywhere in the
world through INTERNET BANKING.

Personalized Cheque Book with your name and account no embossed on each
cheque.

Avail 24 hours banking facility through ATMs at all our branches for cash,
cheque deposit, withdrawal, account statement, new cheque book request,
funds transfer etc.
24

Preferred Customer Status for individual having deposit of Rs. 5 lakh and
above with special personalized service.

Use all your credit cards at your ATMs: MASTERCARD, AMERICAN

EXPRESS AND VISA.

Use HDFC BANK DEBIT CARD for withdrawals and purchase at any of the
Visa Electrons more than 5 lakh locations worldwide.

At par collection of outstation cheques from HDFC BANK branches (after 10

working days).

Free usage of Mobile Banking, Phone Banking to operate / inquire about the
account.

Unique Multicity Current Account

(PLUS CURRENT ACCOUNT) with

PAYABLE AT PAR cheque book facility and fee Dds up to Rs. 10 lacks per
day on HDFC Bank brooches combined Fees Outstation Cheque Collection in
7 working days for cheques available at metros.

25

SWOT ANALYSIS
STRENGTH
1. The biggest strength of Bank is Direct Banking channels. As Direct banking
channels saves time and money both as a customer does not need to go to bank for
any kind of transaction except cash withdrawal and cash deposits all other things
are done sitting anywhere in the world.
2. All services or products of HDFC Bank are available through direct banking
channels.
3. Free ATM, Net Banking, Mobile Banking, Phone Banking and 24 hours services.
4. Very easy to access and use.
5. A highly personalized services provided by the bank.
6. HDFCs Direct Banking channels provide real time and accurate information.
7. HDFCs Direct Banking is user friendly any one can easily operate it.
8. Now International Debit Card is Free for one year.
9. The Bank has strategic business alliance with Chase Manhattan Bank, largest bank
of USA.
WEAKNESS:
1. Unawareness about all Direct Banking Channels due to less advertisement.
2. Other private banks have started direct banking channels it may put some
competition to HDFC Bank in near future.
3. Resistance to Change.
4. One should have the knowledge of the operations of the computers and of course
the Internet.
OPPURTUNITIES:
1. As Nationalized Banks and Co-operative Banks do not provide Direct Banking
services, so HDFC Bank can attract more customers.
2. Centralized banking makes easy for HDFC Bank to provide services to
customers.
3. Huge market of shareholders.
THREATS:
1. Competition from other private sector banks.
2. Attacks of web hackers.
26

ICICI BANK LTD.

ICICI bank Ltd is the second largest bank of India. ICICI Bank is a private sector
commercial bank organized under the law of India in 1994. ICICI bank offers a wide
range of banking product to corporate and retail customer through a Variety of
delivery channels. ICICI bank is an affiliate company of ICICI. ICICI Bank was
originally promoted by the erstwhile SCICI ltd. It was incorporated as a company
under the Companies Act, 1956 on 5th January 1994 and received the certificate of the
commencement of the business on 24 February, 1994.
In May, 1994 when ICICI Bank was incorporated as a subsidiary of ICICI and
granting a banking Licence, ICICI held 75% of the equity share capital of ICICI Bank
and the balance 25% of the equity share capital of ICICI Bank was held by SICICI
Ltd.
Following the amalgamation of the SICICI Ltd. with ICICI, ICICI Bank become
wholly the subsidiary of ICICI. The reserve bank of India imposed a condition that
ICICI reduce its shareholding in ICICI Bank in stages, first to not more than 75%of its
equity share capital and ultimately 405of its equity share capital. On September 30,
2001, ICICI held 46%of the equity share capital of ICICI bank.
The ICICI Bank was founded with the objective of providing quality banking services
using the state of art technology. ICICI bank placed a great emphasis on the need for
competitive, efficient, and low cost financial intermediation. ICICI Bank conducts
banking operation in an organized and systematic manner. Toward this end, it has set
up a fully computerized continually upgrades its strong systems and procedures with
special emphasis on risk management.

ICICI Bank (formerly Industrial Credit and Investment Corporation of India).

ICICI Limited was established in 1955 by the World Bank, the Government of India
and the Indian Industry, for the promotion of industrial development in India by
giving project and corporate finance to the industries in India.

27

ICICI Bank has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI Bank has
financed all the major sectors of the economy, covering 6,848 companies and 16,851
projects. As of March 31, 2000, ICICI had disbursed a total of Rs.1,13,070 crores,
since inception.
ICICI Bank Fact Files:
Total assets: Rs.146,214 crore (December 31, 2004)
Network: 530 branches
ATMs: Over 1,880
Abroad Subsidiaries: United Kingdom and Canada
Abroad branches: Singapore and Bahrain
Representative offices: United States, China, United Arab Emirates, and Bangladesh
and South Africa.

ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89
bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn)
for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended
March 31, 2005). ICICI Bank has a network of about 614 branches and extension
counters and over 2,200 ATMs. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. ICICI Bank set up its international banking group in fiscal 2002 to cater
to the cross border needs of clients and leverage on its domestic banking strengths to
offer products internationally.
ICICI Bank is India's largest private sector bank in market capitalization and second
largest overall in terms of assets. Bank has total assets of about USD 180 billion (at
the end of March 2013), a network of over 1,891 branches, 34 regional offices and 64
regional processing centers, about 6,485 ATMs (at the end of September 2008), and
48 million customers (at the end of July 2013). ICICI Bank offers a wide range of
28

banking products and financial services to corporate and retail customers through a
variety of delivery channels and specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. ICICI Bank is also the largest issuer of credit cards in India. ICICI Bank
has got its equity shares listed on the stock exchanges at Kolkata and Vadodara,
Mumbai and the National Stock Exchange of India Limited, and its ADRs on the New
York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches
and representatives offices in 18 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the hisave savings brand is operated), offshore banking units in
Bahrain and Singapore, an advisory branch in Dubai, branches in Belgium, Hong
Kong and Sri Lanka, and representative offices in Bangladesh, China, Malaysia,
Indonesia, South Africa, Thailand, the United Arab Emirates and USA. Overseas, the
Bank is targeting the NRI (Non-Resident Indian) population in particular.
ICICI Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai
International Finance Center and representative offices in the United States, United
Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has
established a branch in Belgium. ICICI Bank is the most valuable bank in India in
terms of market capitalization.
ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
ICICI Bank has formulated a Code of Business Conduct and Ethics for its
Directors and employees. At June 5, 2006, ICICI Bank, with free float market
capitalization of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all
the companies listed on the Indian stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
Institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank
29

was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal
2002. ICICI was formed in 1955 at the initiative of The World Bank, the Government
of India and representatives of Indian industry.
The principal objective was to create a development financial institution for
Providing medium-term and long-term project financing to Indian businesses. In the
1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial service group offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January
2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High
Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking Operations, both
wholesale and retail, have been integrated in a single entity.
Free float holding excludes all promoter holdings, strategic investments and Cross
holdings among

public sector entities.

Vision
To be the leading provider of financial services in India and a major global bank.
Mission
We will leverage our people, technology, speed and financial capital to be the
banker of first choice for our customers by delivering high quality, world-class
service.
Expand the frontiers of our business globally.
Play a proactive role in the full realisation of Indias potential.
Maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
30

 Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we
operate.
Create value for our stakeholders.
Product and Services
Service and banking of ICICI bank categorized in to personal banking,
business banking and NRI banking services.
Personal banking- Deposit in form of saving, recurring, term deposit, senior citizen
deposit and children depository account are there for individual customer can also
avail of their housing, automobile, farm equipment, business or personal loan scheme.
Personal client can also invest in mutual funds and participate in stock trading through
ICICI bank.
Business banking Business banking services of ICICI Bank are exhaustive. Project
financing, deal assessment, and land evaluation are investment banking services
offered to corporate clients. Global trade and cash management transaction services
facilitate remittances and receipts across important cities. Capital market and
custodial services enable business houses to participate in equity trading and transfer
across major stock markets of world.

31

EVOLUTION OF SBI
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later the bank received its charter and was re-designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of
British India sponsored by the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These
three banks remained at the apex of modern banking in India till their amalgamation
as the Imperial Bank of India on 27 January 1921.
The three banks were governed by royal charters, which were revised from time to
time. Each charter provided for a share capital, four-fifth of which were privately
subscribed and the rest owned by the provincial government. The members of the
board of directors, which managed the affairs of each bank, were mostly proprietary
directors representing the large European managing agency houses in India. The rest
were government nominees, invariably civil servants, one of whom was elected as the
president of the board.

Group Photograph of Central Board (1921)

A major change in the conditions of operation of the Banks of Bengal, Bombay and
Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the
right of note issue of the presidency banks was abolished and the Government of India
assumed from 1 March 1862 the sole power of issuing paper currency within British
India. The task of management and circulation of the new currency notes was
conferred on the presidency banks and the Government undertook to transfer the
Treasury balances to the banks at places where the banks would open branches. None
of the three banks had till then any branches (except the sole attempt and that took a
32

short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had
given them such authority. But as soon as the three presidency bands were assured of
the free use of government Treasury balances at places where they would open
branches, they embarked on branch expansion at a rapid pace. By 1876, the branches,
agencies and sub agencies of the three presidency banks covered most of the major
parts and many of the inland trade centers in India. While the Bank of Bengal had
eighteen branches including its head office, seasonal branches and sub agencies, the
Banks of Bombay and Madras had fifteen each.
In 1951, when the First Five Year Plan was launched, the development of rural India
was given the highest priority. The commercial banks of the country including the
Imperial Bank of India had till then confined their operations to the urban sector and
were not equipped to respond to the emergent needs of economic regeneration of the
rural areas. In order, therefore, to serve the economy in general and the rural sector in
particular, the All India Rural Credit Survey Committee recommended the creation of
a state-partnered and state-sponsored bank by taking over the Imperial Bank of India,
and integrating with it, the former state-owned or state-associate banks. An act was
accordingly passed in Parliament in May 1955 and the State Bank of India was
constituted on 1 July 1955. More than a quarter of the resources of the Indian banking
system thus passed under the direct control of the State. Later, the State Bank of India
(Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take
over eight former State-associated banks as its subsidiaries (later named Associates).
The State Bank of India was thus born with a new sense of social purpose aided by
the 480 offices comprising branches, sub offices and three Local Head Offices
inherited from the Imperial Bank. The concept of banking as mere repositories of the
community's savings and lenders to creditworthy parties was soon to give way to the
concept of purposeful banking sub serving the growing and diversified financial needs
of planned economic development. The State Bank of India was destined to act as the
pacesetter in this respect and lead the Indian banking system into the exciting field of
national development.
MISSION STATEMENT:
To retain the Banks position as premiere Indian Financial Service Group, with world
class standards and significant global committed to excellence in customer,
shareholder and employee satisfaction and to play a leading role in expanding and
33

diversifying financial service sectors while containing emphasis on its development

banking rule.
VISION STATEMENT:

Premier Indian Financial Service Group with prospective world-class Standards of

efficiency and professionalism and institutional values.

Retain its position in the country as pioneers in Development banking.

Maximize the shareholders value through high-sustained earnings per Share.

An institution with cultural mutual care and commitment, satisfying and

Good work environment and continues learning opportunities.

VALUES:

Excellence in customer service

Profit orientation

Belonging commitment to Bank

Fairness in all dealings and relations

Risk taking and innovative

PRODUCT & SERVICES OFFERED BY SBI:

Terms deposit scheme

Recurring deposits scheme

Loans

SBI SARAL Personal loan

Education loan

Car loan

Home loan

Medi-Plus loan

TERM DEPOSITS

Provide security, trust and competitive rate of interest.

34

Flexibility in period of term deposit from 15 days to 10 years

Affordable Low Minimum Deposit Amount:

One can open a term deposit with SBI for a nominal amount of Rs.1000/- only.

Flexibility in choosing the amount one wish to invest and the maturity period.

BENIFITS OF SCHEME: Safety: SBI IS continues to deliver on its promise of safety and security over 200
years.
Liquidity Loan /overdraft facility: One can avail a loan/overdraft against his
deposit. SBI provides loan / overdraft up to 90% of deposit amount at nominal cost.
So one can continue to earn interest in his deposit and still can meet his urgent
financial requirements.
Premature Withdrawal: Interest to be charged on premature withdrawal of term
deposits at 1.00% below the rate applicable for the period deposit has remained with
the Bank.
Transferability-Transfer of Term Deposits between wide networks of branches
without any charge.
Compounding / Flexible / Timely Payment of Interest
Under Special Term Deposit Scheme, interest accrues in account and gets
compounded quarterly.

Term Deposits are available at all SBI Branches

Easy and convenient access of information at SBI internet banking.

Tax Implications:

Tax Deductible at Source, as per Income Tax Act

Flexibility to convert Special Term Deposit to Term Deposit and vice versa

One can convert his special Term Deposit to a Term Deposit to receive
monthly/quarterly interest payments to match his financial requirements.

35

One can also convert his Term Deposit to a Special Term Deposit, which provides
compounded rate of interest to multiply his money faster.

RECURRING DEPOSIT:Recurring deposit refers to a little investment by an investor to meet his financial
goals of future (Childrens education or marriage, buy a car etc.) Recurring deposit
provides the element of compulsion to save at high rates of interest, wide choice in
period of deposit.
Features:

Flexibility in period of deposit with maturity ranging from 12 months to 120

months.

Low minimum monthly deposit amount.

One can start a Recurring Deposit with SBI for a monthly installment of Rs.100/only.

Benefits:Including all the benefits of terms deposits there are some more benefits of recurring
benefits:

Nomination Facility is available in this scheme

One can save a monthly installment of multiple of 10 every month

One can monitor his deposit through SBI Internet Banking or through a passbook
issued to you.

36

PUNJAB NATIONAL BANK

HERITAGE
Punjab National Bank has faced many a trials of strength including the trauma of
partition of India in 1947 at the time of independence. However, due to its inherent
strengths and resilience, the bank not only withstood such adversities but established
itself still firmly on the Indian subcontinent. The bank was nationalized in July 1969
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the
distinction of being the first bank to have been started solely with Indian capital. From
its modest beginning, the bank has grown in size and stature to become a front-line
banking institution in India at present. During its existence of over one hundred and
eight years, along with 13 other banks. The bank's strength lies in its corporate belief
of growth with stability.

Punjab National Bank is a state-owned financial services company located in New

Delhi, India. It was registered on May 19, 1894 under the Indian Companies Act with
its office in Anarkali Bazaar Lahore. Today, the Bank is the second largest
government-owned commercial bank in India with about 5000 branches across 764
cities. It serves over 37 million customers. The bank has been ranked 248th biggest
bank in the world by the Bankers Almanac, London. The bank's total assets for
financial year 2007 were about US$60 billion. PNB has a banking subsidiary in the
UK, as well as branches in Hong Kong, Dubai and Kabul, and representative offices
in Almaty, Dubai, Oslo, and Shanghai.
Punjab National Bank is one of the Big Four Banks of India, along with ICICI Bank,
State Bank of India and Canara Bank .

37

HISTORYOFPUNJABNATIONALBANK
Punjab National Bank was established in the year 1895 found by Punjab Kesari Shri
Lala Lajpat Rai at Lahore (now in Pakistan) as a joint stock company. After the
partition in 1947, the bank grew steadily with its presence at the important centers and
metropolitan cities of the country and emerged as one of the big five Indian banks
during pre-nationalized period.
The bank was nationalized in 1969 along with 13 other banks. Subsequently, in 1993
it took over the New Bank of India, another bank that was nationalized in 1980. In
2003 the Nedungadi Bank Ltd., a south based private sector bank also
merged the bank. Thus the bank, which previously had its main business area around
the Indo-Gangetic belt and major metros, could ensure its remarkable presence in the
entire country.
Presently, it is the second largest bank of the country rendering a wide variety of
banking services (corporate/personal/industrial finance/agriculture finance/financing
of trade and commerce/international banking). It has a broad clientele base like Multi
National Corporation, Indian Conglomerates, medium/small industrial units and
NRIs. As a bank with global standard, it was ranked 416th among the biggest bank in
the world by the bankers Almanac in 2002.The bank is member of the SWITY
(society for Worldwide International Financial Telecommunication) and has strong
correspondent relationship with the leading international banks. Continued financial
sector reforms led to greater alignment of financial sector to the competition business
environment.
Operational and supervisory practices in the sector have been progressively matching
international standards. In the process Indian banking system is becoming
increasingly mature in terms of transformation of business process and risk
management. The head office of the Bank is at, Bhikaji Cama Place, New Delhi.
The bank also has subsidiaries like PNB Gilts Ltd., PNB Housing Finance Ltd.,PNB
Capital Services Ltd., PNB Assets Management Co .Ltd.
VISION

38

To evolve and position the Bank as a world class progressive cost

effective and customer friendly institution providing comprehensive
financial and related services; integrating frontiers of technology
and serving various segments of society especially the weaker
section; committed to excellence in serving the public and also
excellence in serving the public and also excelling in corporate
values.

MISSION
To provide excellent professional services and improve its position
as a leader in the field of financial and related services; build and
maintain a team of motivated and committed workforce with high
work ethos; use latest technology aimed at customer satisfaction
and act as an effective catalyst for socio-economic development

PRODUCTS OFFERED BY PUNJAB NATIONAL BANK: Presently, it is

the second largest bank of the country rendering a wide variety of banking
services:

CENTRALISED BANKING SOLUTION (CBS): CBS, an inter-branch

networking and data-sharing platform helps to operate account from any city
in India having CBS networked branches. Changing status from Customer of
the Branch to Customer of the Bank, presently, there are over 2,616 CBS
networked brandies in 820 cites.

NRIS & TOURISTS: Currency exchange services are being provided by our
Exchange Bureaus spread throughout the country.

ONLINE TAX PAYMENT: PNB provides the facility of online payment of

service tax, excise duty, DGFT, custom duty & all charges under MCA.

CASH MANAGEMENT SERVICE (CMS): PNBs CMS facilitates

management of receivables and payments in technology driven environment,
ensuring availability of funds at reduced cost, helping reconciliation at multi
location accounts besides providing customized MIS.

39

MUTUAL FUNDS & INSURANCE: The bank has tied-up with Principal
Financial Group for providing Mutual Funds and Insurance services & also
tied up for distribution & marketing of UTI Mutual Funds.

NRI SERVICES: NRE, FCNR, RFC, NRO Deposit a/c investment

Management & Housing Loan facilities for NRIs.

FOREIGN EXCHANGE: PNB has 150 branches authorized for handling

foreign exchange business and these branches have been provided with
SWIFT connectivity to ensure faster realisation of funds.

e-MONEYINDIA: Send money to the loved ones in India through PNBs eMoney India service. Draft delivery across 4,038 locations and Bank Credit to
over 2,500 branches in India.

ONLINE RAILWAY RESERVATION/AIR TICKET BOOKING: Say

goodbye to long queues. PNB offers online booking & information through
IRCTC payment gateway. Just click and travel comfortably.

DEPOSITORY SERVICE: PNB Depository service provides the facility of

having shares & securities in Demat form & executes transactions of sales &
purchase hassle free electronically.

LOCKERS: Now, customer can relax with assurance of having your locker at
the PNB branch nearest to their home.

CUSTOMER CARE FACILITY: All the banking queries and problems are
just a call away! PNB presents 24 hr. customer care facility.

PNB GOLD COIN: PNB gives opportunity to dazzle the well wishers,
patrons, partners and acquaintances with the mystical charisma of PNBs
999.9 fineness pure 24-carat gold coins and to convey the true value of
treasured relationship. Enjoy guarantee of purity & weight of hallmarked gold
coins.

ELECTRONIC CLEARING Service (ECS) & ELECTRONIC FUNDS

TRANSFER (EFT): Avail ECS for quick movement of funds in a paperless
mode & EFT to ensure an expeditious transfer of funds by using electronic
media.
40

WEALTH MANAGEMENT SERVICE:

PNB provides

customized

financial advisory services for individuals that includes Mutual Funds,

insurance, Retirement Planning, Tax planning, & Debt Management to
customers for wealth maximization.

ONLINE BILL PAYMENT: No more queues to pay your bills. Now pay
telephone, mobile, electricity, insurance & several other bills 24 hours, 365
days, from the desktop.

SERVICES PROVIDED BY PUNJAB NATIONAL BANK: Punjab National Bank

offers financial solutions and services in an array of sectors. All these services that are
offered keep pace with the changing market trends in order to fulfill the needs and
preferences of the customers. Some of the well known sectors on which the main
functions of the bank are based are:

Personal Banking

Corporate Banking

Agriculture finance services

Industrial finance services

Trade financial services

International banking services

PNB also has commercial relationship with more than 200 prestigious international
banks across the globe. It has the provisions of Rupee Drawing Arrangements with
around 15 exchange companies in the UAE and 1 in Singapore.
In case of the personal banking segment, the bank offers customized solutions to take
care of almost all financial needs of the customers. Some of the well known services
that are offered in the bank are:

Savings Fund Account

Fixed Deposit scheme

Current account

Loan services
41

Punjab National Bank is also a well known name in housing loan benefits. The bank
offers both short term and long term loans. The rates are also affordable and can be
paid within a particular time. The housing loans are given for a number of purposes
such as:

Construction of a building

Purchase of a new house or a flat

Purchase of flat or house on a First Power of Attorney basis

For the purpose of repair or renovation of a house or a building

The PNB Housing Finance sanctions around 80% of the cost of the project. However,
the maximum amount is around Rs 50 lakh. The maximum loan amount for the
purpose of renovation and repair is Rs 5 lakh. In most cases, the loan is available for a
period between 5 and 20 years before one becomes 65 years of age. The interest of the
loan is based on the reducing balance and the principal amount of the loan is also
based on the repaying capability of the borrower.

42

CHAPTER - 2
REVIEW OF LITERATURE
This chapter presents the review of selected studies having relevance to present
studies. To formulate the problem and to point out the importance of understanding
the study, it is essential to present the brief review of the various aspects of services of
banks. In this chapter, an attempt has been made to present the review of literature
available in the area of banking services.
Theodore Levitt (1974)
We live in an age in which our thinking about what a product or a service is must be
quite different from what it ever was before it is not so much the basic, generic central
thing we are selling that counts, but whole cluster of satisfaction with which we
surround it.
Working Group on Customer Services (1975)
In Their final report, it has confidently concluded that small branches serve customers
far better than bigger ones. They invariably more frequently and generate very few
complaint choose and remittances through past.
Vaghul (1976)
Has studied employee development in relation to customer services. He writes that
delays in customer service flow not only out of defective systems, but attitude of
employees. Even if system is modified, unless the employee attitude does not change,
the desired results cannot be achieved. Instead of trying to change their attitude
through classroom training, it is appropriate to include new value system and attitudes
when they join the organization. He suggested that instead of starting an employee on
monotonous type of jobs, the employee be given a challenging task
Suneja (1978)
Recalled that before period of nationalization, rendering of banking services was not
accompanied by the immigration and innovation i.e. they were living in the selling

43

age but the trend is changing now and those two factors are acting as inputs to the
improvement of quality of banking services.
Klein (1977)
He studied the impact of long range planning on profit and growth of commercial
banks. The study indicates that banks size is an important variable affecting growth
trends in commercial banks. Future, the extent of large range planning efforts
undertaken does influence growth trends.
Sampat P Singh (1980)
He questioned the pricing structure of banking services. He wrote that in view of
manifold increase in services and service package offered by banks, there is pressing
need for unbundling bank services and for instituting pricing system.
Mehra (1983)
Emphasized that the banks should try to market its services and his efforts should
always be to convert a visitor to a regular customer. Also he emphasized the
importance of personal approach in promoting bank services then advertising through
formal media.
ManMohan Singh (1984)
During Indian banking system in the five year plan, he said that the deterioration
standard of customer services is attributed due to rapid expansion of Indian banking
system and work technology on selected basis.
Patel (1986)
Has expressed concern over nothing being done about deterioting banking services
and monetary costs for the same. Unfortunately, customers' complaints only end up in
paper baskets or letter or two does not force them to take some actions. At senior
management levels, however is awakening and awareness to consumer complaints.
Subrahmaniyam (1991)
Established that some useful and constructive schemes had been designed by
commercial banks, but these had not been efficiently and properly implemented. In
44

contrast to this, some private finance companies had taken to lead in matter of
advertisement to attract customers.
Asthana (1997)
Says in the study conducted by Mehsana Cooperative Bank Ltd., Gujarat, a marketing
mix of banking services, product, price, place, promotion, people and procedures are
the 6 Ps of bank services marketing mix. The study has fully determined the need of
adopting marketing approach in banking services and it realizes that it is more urgent.
The study concludes that the banks should adopt proper marketing mix depending
upon competition and global conditions that only can the bank fully realize the
benefits of marketing. The banks delivering the services to customers in a less time
commands a competitive edge over the others.
Anu Handa (2001)
Performance evaluation criteria adopted by public and private sector banks
She concluded that Public sector banks largely dominate the banking industry. Public
sector banks facing problem in implementing or upgrading technologies. Private
sector banks on expansion phase. Respondents of study having account in different
banks, but private banks got the higher rating then the public sector banks. Public
sector banks were willing to professionalize. Internet banking, bill pay facility etc are
provided by private sector banks and not public sector banks.
Manisha Dhiman (2002)
Comparative study of ATM, DEMAT & E-banking services provided by the public
and private sector banks
In her findings she said that total investments made by the private are more than the
public sector banks. Number of customers and staff members is more in public sector
banks than private sector banks. Customer avail ATM service more than DEMAT and
E-banking service. Public sector banks customer take more time to become actual
customer than private banks. Average number of customers is more in private sector
banks who are availing services daily than public sector banks.
Rakesh Kumar (2002)
Study of Customer relationship management in private sector banks
45

The study states that most of the services provided by private sector banks were like
depository, loans and advances, e-banking, ATM, etc. and for the advertisement of
various services 63% of the banks use print media. The private sector banks offer
various facilities free of cost like pass book and anywhere banking facility to attend
and retain the customer. Most of the banks attracted the customers by its retail
advertising.
Majority of banks (i.e. 40%) use financial and customization bonds to retain the
customer. The information about the services is circulated mostly by the customer and
employees of the banks and 56% of the respondents states that they had availed the
services of another before coming to private banks and shifted because of better
services.
The major problem of the customer was improper functioning of ATM facility, 36% of
the customers stated that time taken to solve the problem was usually 10-150days.
Deepinder Bajwa (2003)
Comparative study of selected public and private sector banks providing car finance
in Ludhiana.
He concluded in his research that schemes offered by private banks are so alluring
that force the customer to go for car finance. The public sector banks are charging
higher interest rates. Processing time taken by public sector banks is far more than the
private banks. Private banks customer are more satisfied than the public sector banks.
Saibal Ghosh, D.M. Nachane, Aditya Narain, Satyananda Sahoo, department of
Economics Analysis and Policy, Reserve Bank of India, Mumbai , India
Capital requirements and bank behavior: an empirical analysis of Indian public
sector banks
Consequent upon the introduction of prudential norms as an integral part of financial
sector reforms, the present paper investigated the relationship between changes in risk
and capital in the Indian banking sector. A dynamic, multivariate panel regression
model is formulated wherein changes in capital ratio depend on lagged value, a range
of conditioning variables and regulatory dummies. Analysis reveals that:

46

1. The regulatory framework needs to be designed to encourage individual banks to

maintain higher than stipulated capital levels to reflect their differential risk
profiles.
2. There is no conclusive evidence of risk aversion among Indian banks.
Manpreet Kaur (2005)
An evaluation of customer services provided by selected public sector banks in
Ludhiana.
Among the customers, saving account was most popular form of deposit and recurring
deposit was losing its popularity. Behavior of employees and modern technology are
the very important factor that influences the customer to visit a particular bank. Most
of the customers are satisfied with ATM and debit cards facilities, at the same time
customer are facing the problem of long processing time, they are also facing the
problem of behavior of bank employees, poor services.

47

CHAPTER 3
NEED, OBJECTIVES & RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

To find the satisfaction level among customers regarding the services provided by
the public and private banks.

To know in detail about the services provided by some selective Public & Private
sector banks.

RESEARCH METHODOLOGY
Research Design
The research design is a pattern or an outline of a research projects working, it is a
statement of only the essential elements study, those that provide the basic guidelines
for the details of the project. Further a research design is an arrangement of conditions
for collection and analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure. It constitutes the blueprint for
collection, measurement and analysis of data. Research design stands for advance
planning of the methods to be adopted for collecting the relevant data and the
techniques to be used in their analysis, keeping in view of the objectives of the
research.
The present study, being conducted, followed a descriptive as well exploratory design.
It produces a picture of the phenomenon in which the decision maker is interested. As
the data would be responses from a sample containing large number of source. Design
of descriptive studies includes the nature and source of the data, the nature of
expected results and the analytical method.
The research design for my research is exploratory and descriptive, as I will be
exploring some new facts about the satisfaction of customer regarding their respective
public and private banks and describing the phenomenon in which sector banks are
more satisfied and what are the contributing factors causing the satisfaction.

48

For my research total of four banks were selected out of which two Private sector
banks and two Public sector banks, namely:
Private Banks: ICICI Bank & HDFC Bank
Public Banks: State bank of India Bank & Punjab National Bank.
Data Collection
For my research study the data has been collected by both the primary & secondary
means. The primary data has been collected regarding the different attributes to be
considered while preparing the questionnaire. The questionnaire was then designed
keeping in mind the objectives of the study.
For primary data collection I adopted the structured questionnaire, which was filled
by hundred respondents who were selected randomly, 25 respondents per bank were
selected according to convenience so this data collection is convenient random data
collection.
The secondary data of my research has been collected through magazines, journals
and some previous researches done on comparative study of public and private sector
banks.
Data analysis
For the purpose of analyzing, raw data was summarized into a master table and from
this table the results have been carried out. The questions that have an alternate
choices were analyzed by taking percentages. In the case of exploratory questions,
suggestions and major tips have been summarized.
Sampling Plan
Sampling is an effective step in the collection of primary data and has a great
influence on the quality of results. The sampling plan includes the universe,
population, sample size and sample design.
Universe
Universe refers to all the eligible respondents for a particular research around the
world.
49

The universe for my research is all the persons of the world who are availing the
services of banking services provided by the banks and who are their customers.
Population
Population refers to part of universe from which the sample for conducting the
research is selected. Universe & population can be same in some researches.
The population for my research is the residents of Ludhiana city who are currently
using the banking services of public and private banks
Sampling Design
A sample design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items
for the sample.
The selection of customers was done on the basis of convenience sampling.
Sampling Unit
Sampling unit refers to smallest possible individual eligible respondent.
In my study the sampling unit is single individual respondent consumer who is
availing banking services in Ludhiana from respective banks.
Sample size
Sampling size refers to total number of respondents targeted for collecting the data for
the research.
The sampling size of my study is 100 respondents and this sampling size was selected
on the basis of Convenience Sampling and Random Sampling.

50

CHAPTER 4
ANALYSIS OF DATA
1. Do you have Bank Account?
a) Yes

b) No

As the research is convenience sampling and related to respondents who are availing
services of banks so only those customers were targeted who were having bank
accounts and using banking services.

2. In which Bank you are having account:

a) HDFC

b) ICICI

c) SBI

d) PNB

Since it is comparative study of public and private sector banks so four banks were
chosen namely

No. of Respondents

1. STATE BANK OF INDIA

25

2. PUNJAB NATIONAL BANK

25

3. HDFC BANK

25

4. ICICI BANK

25

Total

100

51

3. Which of the following service of the bank you are using :

a) Saving Bank

b) Current A/c

c) CC Limit

d) Demat A/c

e) Any other please specify

Types of Accounts
80

70

69

60

50

Responses

40

30
20

20

10

7
4

Saving A/c

Current A/c

CC imit

Demat A/c

0
Any Other

In the above question 69 respondents were having Saving A/c, 20 were having current
A/cs, 7 had CC limits and 4 were having Demat A/c. Out of which in SBI and PNB
36 respondents have Saving A/c, 6 each have Current A/c and CC Limit A/c and 2
have Demat A/c.
In HDFC and ICICI Bank 33 are having Saving A/c, 14 have Current A/c, 1 have CC
Limit and again 2 have Demat A/c.

52

4. For how long you are using the services of this bank?
a) Less than one year

b) More than 1 to 3 years

c) More than 3 to 5 years

d) More than 5 years

Duration of Accounts
30

25

25

20

17

SBI & PNB

10

HDFC & ICICI

14

15

13

10

10
8

Less than 1 year

1 to 3 years

3 to 5 years

More than 5 years

10 respondents of SBI & PNB says they are holding account in bank for less than
year, 17 says they have more than 1 to 3 years old account, 13 respondents says there
account is more than 3 to 5 years old and finally respondents holding account for
more than 5 years are 10 only.
14 respondents of HDFC & ICICI bank says less than 1 year have been passed after
opening an account, 25 says 1 to 3 years passed, 8 respondents have 3 to 5 years old
account, only 3 respondents have opened there account for more than 5 years.

53

5. Does the faster services provided by the banks, influence your decision in choosing
bank:
a) Yes

b) No.
SBI & PNB - Faster services

6%

Yes

No

94%

HDFC & ICICI- Faster Services

18%

Yes

No

82%

As interpreted above, in the case of SBI and PNB out of 50 respondents, 47

respondents or 94% feel that their decision while choosing bank is influenced by
faster services provided by banks, 3 or 6% feel their faster services does not affect
their decision.
For HDFC and ICICI again out of 50 responses received, 41 respondents or 82% says
there decision regarding choosing banks is influenced by faster services of the bank, 9
or 18% respondents says faster services of the banks does not affect their decision.

54

6. Are you satisfied with VAS and ATMs services of the banks:
a)Yes

b) No
SBI & PNB - ATM & VAS Satisfaction

6%

Yes

No

94%

HDFC & ICICI- ATM & VAS Satisfaction

6%
Yes

No

94%

For this question the respondents of both PSU banks and private banks have
satisfaction of same level i.e. 94% of the respondents of both public banks and private
banks are satisfied by the ATMs and VAS provided by their banks, and only 6%
respondents are not satisfied by the ATM and VAS services.

55

7. Does ATM machines work properly:

a) Always

b) Most of the time

c) Sometimes d) Rarely

SBI & PNB - ATM Performance

10%
Always

Most of the time

Sometimes
38%

Rarely

52%

19 respondents of SBI and PNB bank says that there ATM always work properly, 26
says ATMs works most of the time, 5 respondents sometimes ATMs works.

HDFC & ICICI- ATM Performance

12%
Always

Most of the time

Sometimes

46%

Rarely

42%

23 respondents for the above question of HDFC and ICICI banks customers replied
that ATMs always work properly, 21 says it works most of the time, 6 says sometimes
it works.

56

8. The problems faced while using ATM or VAS are:

a) Non working

b) Non adequate denomination of cash

SBI & PNB - ATM related Problems

Non Working

Non Adequate Cash

14%

Network Problems
12%

Out of Order Machines

10%

Software Problem

34%

12%
No Problem
18%

c) Network Problems d) Out of

order machines

e) Software problems

HDFC & ICICI- ATM related Problems

Non Working

Non Adequate Cash

14%

Network Problems

Out of Order Machines

10%

8%

Software Problem

40%

18%

No Problem

10%

14% respondents of SBI and PNB are facing the problem of non working of ATMs,
39% says it is due to non adequate of cash in ATMs, 21% feel their problem of ATMs
is due to network problems, 14% found their ATMs machines out of order, and 12%
respondents problem is due to software problems. 7 respondents does not replied for
this question so it is assumed that they have no problem with ATMs.
12% respondents of HDFC and ICICI are facing problem due to non working of
ATMs and VAS, maximum 46% respondents face problem of non adequate
denomination of cash in ATMs, 12% respondents face problem of network problem,
21% says they have faced out of order machines, 9% says there is sometimes software
problem with the ATMs, and 14 respondents does not reply for this question so it is
assumed that they have no problem with ATMs and VAS. Here also 7 respondents

57

does not reply for this question so it is assumed that they have no problem at all with
the ATMs.

58

9. How quickly Bank Customer Care staff solve out the problem.
a) Within 1 hour

b) Within 4 hour

c) Within a day

Customer Care - Efficiency

25

23

20

22

18
16

15
SBI & PNB

10

12

HDFC & ICICI

0
Within 1 Hour

Within 4 Hours

Within a Day

For this question only 9 customer out of 50 of SBI and PNB said that bank solve out
their problem within 1 hour, 18 says their problem is solved within 4 hours and 23
says that there problem is solved within a day.

59

Similarly of HDFC and ICICI bank, 16 customer says that bank customer care staff
solve their problem within 1 hour, 12 says that bank solve their problem in 4 hours
and 22 respondents say that bank solve their problem within a day.

60

10. Do the bank inform or call you, after solving the problem:
a) Yes

b) No

Banks Customer Care

28

27

27

26

25

25

25

SBI & PNB

HDFC & ICICI

24

23

23

22

21
Yes

No

For this 23 respondents of PSU banks says that bank call or inform them after solving
the problem, where as 27 says bank does not inform or call them after solving the
problem.
61

For HDFC and ICICI there is 50% response for each as 25 customer says bank inform
them and 25 says bank does not inform them after solving the problem.

62

11. The per day withdrawal limit should be:

a) Increased

b) Current limit is adequate

c) Not bothered

d) Cant say
SBI & PNB - ATM withdrawal Limit

18%
Increased

Current Adequate

Not Bothered
38%

Can't Say

18%
26%

38% respondents of SBI and PNB says that current per day withdrawal limit of ATM
should be increased, 26% says current limit is sufficient, 18% each says they have
bothered and they cant say regarding withdrawal limit.

HDFC & ICICI- ATM withdrawal Limit

16%
Increased

Current 8%
Adequate

Not Bothered

46%

Can't Say

30%

46% of respondents of HDFC and ICICI bank feels that per day withdrawal limit
ATMs should be increased, 36% says that current is adequate, 8% says they have not
bothered for withdrawal limit, 16% cant say anything regarding withdrawal limit.

63

12. Do you justify the minimum balance to be maintained with bank?

a) Yes

b) No.

Minimum Balance
45
42
40

38

35

30

25

SBI & PNB

HDFC & ICICI

20

15
12
10

0
Yes

No

42 respondents of SBI and PNB bank feel that minimum balance to be maintained is
justified, and only respondents says it is unjustified.
38 respondents of HDFC and ICICI bank feel that minimum balance to be maintained
is justifiable and only 12 says that maintaining minimum balance is not justified.

64

13. While using any service at the bank, the time taken to process the service is
a) Less than 10 minutes

b) Less than 30 minutes

c) Less than 1 Hour

d) More than 1 hour

SBI & PNB - Se rvice Proce ss ing tim e

Less than 10 min.

Less than 30 min

14%

Less than 1 Hour

16%

20%

More than 1 hour

50%

HDFC & ICICI- Service Processing time

6%
Less than 10 min.

16%

Less than 30 min

36%
Less
than 1 Hour

More than 1 hour

42%

10% respondents of the SBI & PNB banks says that they get there work done at banks
in less than 10 minutes, maximum 50% respondents says that bank employee takes
65

less than 30 minutes to provide the service, 20% respondents says it takes less than 1
hour to get there work done at banks, and only 14% says that they have to spend more
than 1 hour at banks to get the service.

In HDFC & ICICI 36% respondents says that bank employee takes less than 10
minutes to provide the needed service, 42% says that they get there work done in less
than 30 minutes, 16% says that they have to approx. or less than 1 hour to get service,
and only 6% says that it takes more than 1 hour to get service.

66

14.What do you think is the response regarding your queries to the bank official?
a) Perfect knowledge and satisfies the query
b) Less knowledge and does not clearly satisfy the query
c) They redirect you to some other employee(s).
d) Not able to satisfy the query at all
32 respondents of SBI & PNB banks says that the employees have perfect knowledge
to quench their query, 11 says they have less knowledge, 6 says they that they redirect
to other employee and only 1 respondent says they are not able to handle their query.
38 respondents of HDFC and ICICI bank says that the employees have perfect
knowledge while solving their query, 6 says they have less knowledge while handling
there query, 4 says they redirect to other employees and 2 respondents says they are
not able to satisfy their query.

67

15. Are you satisfied with charges for services being charged by the bank?
a) Yes

b) No

Charges for Services Satisfaction

45

42

40
35

33

30
25

SBI & PNB

HDFC & ICICI

20

17

15
10

5
0
Yes

No

42 respondents of public banks says that they are satisfied with charges for services
being charged by the bank comparing to 33 responses of private banks saying they are
satisfied with charges. Only 8 respondents of public banks are not satisfied regarding
the charges for services and 17 responses of private banks are not satisfied with the
charges.

68

16.The charges taken by bank are:

a) Reasonable

b) Higher compared to other banks

c) Lower compared to other banks

d) Not bothered

e) Cant say

Charges for Services

35
33

30
26
25

20
SBI & PNB

HDFC & ICICI

17
15

10
8
5

3
2
1
0
Reasonable

Higher

Lower

Not Bothered

Can't say

33 respondents of SBI & PNB found charges for services as reasonable, 8 finds them
higher, 3 says charges are lower compared with other banks, 1 says not bothered for
charges and 5 cant say anything regarding the charges for services.
26 respondents of HDFC & ICICI bank says charges are reasonable, 17 says they are
higher comparing with other banks, 5 says they have not bothered for charges and 2
cant say about the charges.

69

17. Are you facing any problem with the below mentioned reasons: (Please Rank)
(1: Maximum problem, 2: Moderate problem, 3: problematic, 4: minimum problem)
a) Employees behavior

b) Services

c) ATM and VAS of the bank

d) Bank timings

SBI & PNB - Proble m Factors

21%
Employees Behav ior

Serv ices

28%

27%
ATM & VAS

Bank Timings

24%

HDFC & ICICI- Problem Factors

Employees Behavior

19%

Services

ATM & VAS

31%

Bank Timings 24%

25%

70

In Case of SBI & PNB out of 50 respondents only 43 responded for this question of
which 21% have maximum problem with bank timings, 24% have moderate problem
with services, 27% says employees behavior is problematic factor, and maximum
28% least problem with ATM & VAS. 7 respondents do not reply for this question so
it is assumed that they have no problem at all with above factors.
Similarly in case of HDFC and ICICI bank 19% have maximum problem with bank
timings, 24% have moderate problem with ATM & VAS, 25% have problematic factor
as services and they have least problem with employees behavior 32%, here also 6
respondents do not replied for this question, assuming they have no problem with
these factors.

71

18. Are you over all satisfied with the bank?

a) Strongly satisfied

b) Satisfied

c) Neutral

d) Dissatisfied

e) strongly dissatisfied

Over All Satisfaction

35
31
30

28

25

20

SBI & PNB

HDFC & ICICI

15

12
10

0
S. Satisfied

Satis fie d

Ne utral

Dissatisfie d

S. diss atisfie d

Out of 50 respondents of SBI & PNB, 8 are strongly satisfied, while 28 are satisfied,
12 are neutral that means neither they are on satisfaction side nor dissatisfaction side,
2 are dissatisfied.

72

In HDFC & ICICI bank, 9 respondents are strongly satisfied, with 31 saying they are
satisfied, 9 are neutral on this parameter and 1 is dissatisfied.
None of the respondents of any sector bank is strongly dissatisfied with their bank.

73

CHAPTER - 5
SUMMARY, CONCLUSION, LIMITATIONS &
RECOMMENDATIONS
Summary

Majority of the respondents have Saving Account followed by the Current

Account, then CC Limit, and lastly Demat Accounts.

Only 14%-15% of respondents go to bank daily, maximum 30% visits bank once
in week, followed by 26% visiting once or twice per month.

Public bank customers have account for longer duration as compared to private
banks, this is due to changing perception of people regarding private banks.

Faster services provided by banks is a dominating factor in case of banks, all

banks customer consider faster services as most important.

94% customers of public banks compared to 82% of private banks says they
consider faster services as influential factor while choosing banks.

Satisfaction level in case of ATM services is equal in both public and private
banks.

Private banks ATMs works more properly compared to public banks.

Majority of Public banks ATM works properly most of the time, whereas Private
banks ATMs are more properly working.

Private banks customer are more satisfied in case of ATM working as compared
to Public banks.

Even though maximum problem is faced because of non adequate denomination

of cash, this problem is more faced by private bank customers.

Private banks customer can get their problem solved in lesser time comparing
with public banks, public banks take more time in solving the problem.

There is mixed response from private banks customer that after solving the
problem banks inform them.

Well public banks customers are less satisfied in case getting being informed after
getting problem solved.

74

Majority of private and public banks customer requires that ATM per day
withdrawal limit should be increased. But the percentage is higher in case of
private banks.

Public bank customers are more satisfied regarding the minimum balance to be
maintained.

This percentage is higher in case of private banks who does not justify
maintaining minimum balance.

Similarly public banks customers find minimum balance more reasonable

comparing with private banks.

While more of private banks customers find that minimum balance to be

maintained is higher compared with other banks.

Private banks customer are more satisfied regarding the service processing time,
maximum 36% of respondents get there work in less than 10 minutes.

In case of public banks it takes near about half an hour for getting the work done.

Employees behavior of private banks is very gentle comparing with public banks,
the ratio difference is 18% to 2%.

There is similar response of both type of banks saying behavior is gentle.

We get picture that private banks customer are more satisfied regarding the
employees behavior.

Private banks employees have perfect knowledge while handling the query of
customers.

6 respondents of public comparing to 4 of private banks feel that they redirect to

some other employee while handling query.

There is similar response for account opening formalities, equal number of both
type of banks respondents feel formalities are few which are mandatory.

So satisfaction level is same in both the case.

Public banks customers are more satisfied with charges for services comparing
with private banks.

34% of private banks customers are not satisfied with charges for services, which
is less in case of public banks

Larger number of public banks customer view that there banks charger for
services are reasonable.
75

Well substantial number of private banks customer feel that their banks charges
are higher.

Least number of customers of private banks have problem with the employees
behavior.

But the major factor responsible is bank timings in case of both type of banks.

Similar number of customers of both type of banks are overall strongly satisfied
with their banks.

Majority of private banks customers rate there bank performance and services as
excellent.

This implies that private banks customers are more happy or satisfied with the
overall performance of their bank.

More of private banks customer are loyal to their banks, comparing to public
banks.

While substantial number of customers of private banks may move to another

private bank, less number will move to public banks

Very less number of public banks customers will move to another public bank.

Maximum of public banks customers may shift to private banks if given chance.

76

CONCLUSION
From the above study it can be concluded that the people of Ludhiana have more faith
on PSU Bank than Private sector Bank. The main reasons are as follows
Since Ludhiana is a urban & rural place, so there are less number of branches of
private sector banks in this rural area and also the trust factor is less in case of private
sector banks. Whereas for PSU Banks they are working under the financial inclusion
policy of the RBI and thus have adequate number of branches in this place which
Private Sector Banks do not. Hence with respect to this place it is the PSU Bank
mainly SBI & PNB as revealed in our study which is far ahead of the Private Sector
Banks with respect to customer base.
Since, banking industry is bound to grow extensively in the next few years; it is up to
the private sector banks to enhance the number of branches in the Ludhiana to attract
customers of the staid place. For the PSU Bank in order to sustain the large customer
base, they to change their view regarding the customer relationship management
(CRM). Their employees need to change their behavior and attitude towards its
customers in order to serve its customer whole heartedly and willingly.

77

LIMITATIONS OF THE STUDY

No study is complete in itself, however good it may be, and every study has some
limitation. The limitation of this study can be summarized as follows:
1. Being a one-man study and due to constraint of time the study has been confined
to Ludhiana city only, and only four banks were selected that is two Private Banks
and Public banks.
2. As the present work pertains to only to 25 customers of each bank, then findings
presented may be viewed in this perspective. Thus generalization may not be
possible for the large population.
3. The sample was taken on the basis of convenience. Therefore shortcomings of
convenience sampling also present in this study.
4. There are some inherent limitations as far as the collection of data is concerned.
The responses of the respondents may be biased.

78

RECOMMENDATIONS

Only 15-16 years have been passed when private banks came into existence in
India. So lot of growth potential is left for private as well public banks.

In todays competitive world faster services and efficiency is the mantra for
private and public banks to excel in market.

Both type of banks should improve the working so that there should be no room
for dissatisfaction among regarding ATM services.

Regular checks on periodical basis should be done by banks to check the working
of ATMs.

ATM related problem should be handled quickly as customers more often visit
ATMs rather than banks.

Banks should keep more cash in ATMs as maximum problem was due to non
availability of cash.

Special care should be taken on weekends and holidays when there is more
withdrawal from ATMs.

Public banks are required to improve their efficiency in solving the problem, it is
advised less time should be taken otherwise they may lose customers.

After solving out the problem banks should inform the customers especially in
case of public banks, because in current competitive scenario, customer retention
is the toughest job.

Per day withdrawal should be increased in both type of banks.

Private banks could lower the minimum balance to be maintained or it should be

at par with other banks.

Other thing they can do is they could provide more additional facility.

Public banks should improve their working speed to process the customers job,
they should take lesser time of customers while providing service, private
maintain their efficiency and always there is room for improvement.

Employees of public should bring change in their behavior while interacting with
the customers.

Every employee of each type of bank should have adequate knowledge to handle
the queries of banks. This gives satisfaction to customers.

79

There should be minimum number of formalities for opening an account for any
service.

Private banks should lower the charges for services, or it should be at par with
other banks.

Both type of banks are required to bring changes in their bank timings, as
maximum problem is faced due to timings of bank.

Some changes should be brought in the working habits of banks as maximum

number of customer should be satisfied with the banks, as already suggested
customer retention is need of time.

More and more measures should be taken and care should be providing to
customers to retain them.

80

REFERENCE
Books

C.R. KOTHARI, RESEARCH METHEDOLOGY, New Delhi, New Age

Publishers, (2006)

Dr. D.D.Sharma, Marketing Research, New Delhi, Sultan Chand &Sons, (2005).

Magazines

Business Today KPMG Survey, Indias Best bank, Business Today, 26 February,
Pg (58-60), 2006

D. latish and Surrender Vaddepalli, Banking Sector- Global Competencies,

Chartered Financial Analyst, IFAI Press, February, Pg(59-61), 2006

Business World , Volume 25, Issue 41, 28 Feb 2006

Business World, Volume 30, Issue 46, 6 Apr 2006

Newspapers

The Economic Times

The Hindustan Times

The Times of India

81

APPENDIX
Dear Sir/Madam,
I am student of B.B.A 3 rd Year of Arya College, Ludhiana. I am doing Project on
Comparative Study of Consumer perception towards Services Offered by
Public and Private Banks.

For that I want your support by filling up this

questionnaire for me. There are two parts in my questionnaire, one is to be filled up
by children and other is to be filled up by his/her parents. I assure you that
information will not be misused and Ill use information just for my project purpose.
Thanking You.
Name

_______________________________

Age

_______________________________

Occupation

_______________________________

Gender

Male

Female

1. Do you have Bank Account?

a) Yes
2.

b) No

In which Bank you are having account:

a) HDFC

b) ICICI

c) SBI

d) PNB
3.

4.

Which of the following service of the bank you are using :

a) Saving Bank

b) Current A/c

c) CC Limit

d) Demat A/c

e) Any other please specify

For how long you are using the services of this bank?
a) Less than one year

b) More than 1 to 3 years

c) More than 3 to 5 years

d) More than 5 years

82

5.

Does the faster services provided by the banks, influence your decision in choosing
bank:

6.

7.

8.

9.

10.

11.

a) Yes

b) No

Are you satisfied with VAS and ATMs services of the banks:
a)Yes

b) No

Does ATM machines work properly:

a) Always

b) Most of the time

c) Sometimes

d) Rarely

The problems faced while using ATM or VAS are:

a) Non working

b) Non adequate denomination of cash

c) Network Problems

d) Out of order machines

e) Software problems

How quickly Bank Customer Care staff solve out the problem.
a) Within 1 hour

b) Within 4 hour

c) Within a day

Do the bank inform or call you, after solving the problem:

a) Yes

b) No

The per day withdrawal limit should be:

a) Increased

b) Current limit is adequate

c) Not bothered

d) Cant say

83

12.

13.

14.

15.

16.

17.

Do you justify the minimum balance to be maintained with bank?

a) Yes

b) No

While using any service at the bank, the time taken to process the service is
a) Less than 10 minutes

b) Less than 30 minutes

c) Less than 1 Hour

d) More than 1 hour

What do you think is the response regarding your queries to the bank official?
a) Perfect knowledge and satisfies the query

b) Less knowledge and does not clearly satisfy the query

c) They redirect you to some other employee(s).

d) Not able to satisfy the query at all

Are you satisfied with charges for services being charged by the bank?
a) Yes

b) No

The charges taken by bank are:

a) Reasonable

b) Higher compared to other banks

c) Lower compared to other banks

d) Not bothered

e) Cant say

Are you facing any problem with the below mentioned reasons: (Please Rank)
a) Employees behavior

b) Services

c) ATM and VAS of the bank

d) Bank timings

84

18.

Are you over all satisfied with the bank?

a) Strongly satisfied

b) Satisfied

c) Neutral

d) Dissatisfied

e) Strongly dissatisfied

85