A Project Report On

Comparative study of preferences of B-school students towards Public & Private sector Banks

Under the Supervision of: Dr. Deepak Singh

Submitted By: Avinash Raj PGDM(M)-2010-2012

STUDENT DECLARATION

I, Avinash Raj a student of JAIPURIA INSTUTE OF MANAGEMENT, NOIDA (U.P.) INDIA. hereby declare that this Dissertation report is one of the specific work of which is carried by me from October 2011 to February 2012, towards partial fulfillment of requirement for PGDM (MARKETING) course as prescribed by All India Council for Technical Education (AICTE) NEW DELHI. This project report has not submitted to any other institute for award of any degree or diploma e.t.c.

AVINAS H RAJ PGDM (MARKETING) 2nd YEAR (2010-2012) DATE:-

ACKNOWLEDGEMENT

I here by grab an opportunity to express my gratitude towards the esteemed organization JAIPURIA INSTITUTE OF MANAGEMENT for providing me an excellent Environment for carrying out this training. I am heartily thankful to Dr. Deepak Singh (PROJECT CO-ORDINATOR) for his guidance, support, advice and help throughout the training period. I honorably thank to Mr.Nimit gupta (Faculty of marketing) and Mr.Vikash Nath (Faculty of marketing research) and all other teachers who have directly or indirectly supported me and provided me various facilities and kind of guidance necessary for completion of my project. I am also thankful to my friend Mr. Amit Patel who helped me a lot in the completion of this project.

A VINASH RAJ PGDM (MARKETING) 2nd YEAR (2010-2012)

PREFACE

Excellence is an attitude that the whole of human race is born with. It is the environment that makes sure that weather the attitude is visible or other the well planned properly executed and evaluated industrial training help a lot in including the good culture. It provides linkage between industry in order to develop the awareness of industrial approach to problem solving based on board understanding of process and mode of an organization. During this period, the student get real firsthand experience on working in the actual environment .most of theoretical knowledge that they have gained during the course of their studies is to put here. Apart from this the student get the opportunity to learn the latest technology, which immensely help them there carrier .This also benefit the organization as many student doing there project perform very well and are forth offered job in same organization. I had the opportunity to have the real firsthand experience, which has increased my sphere of knowledge to great extent. Now I am better equipped to handle there the real thing than anyone else that has not undergone such training .During the training period ,I occurs during the development of such project and being in such a reputed organization ,I had but the exposure learned how an actual project progress ,what sort of problem actually.

TABLE OF CONTENTS
Serial No: Synopsis
6

Description

Page No:

Chapter-1 Introduction
7-8

Chapter-2 Literature Review

9-15

Chapter-3 Research methodology

16-17

Chapter-4 Analysis and Findings

18-44

Chapter-5 Conclusions, suggestions ,Limitation Bibliography

45-48

49

Questionnaire
50-52

Synopsis
The title of my Dissertation report is Comparative study of preferences of Bschool students towards Public & Private sector Banks. The Aim of this report is to analyze various services provided by public sector banks and private sector banks, for this purpose Jaipuria Institute of Management have been chosen. In Introduction part I have focused on problem/issue identification and definition for understanding the difference in consumer preference in public and private sector banks. The Aims and objectives of this report is to get benefits at organization level, self level and Management level. The proposed contribution of this study is to understand consumer preference about products and services of industry, organization and consumer behavior. The second part covered by me in this report is Literature Review. In this literature review it has been given that how evolution of commercial banks in India takes place. Then what are the main functions of commercial Banks which are divided into three main areas. Then what is the main difference between Public and Private sector Banks. Apart from this Banking in India has been mentioned which covered the names of central Bank, Nationalized Banks and Private Banks. Then the functions of a Bank along with a survey by KPMG in 2011. In third part I have covered Research Methodology & process. The logic behind taking research methodology into consideration is that one can have knowledge about the method and procedure adopted for achievement of objectives of the project. Its main aim is to keep the researchers on the right track. Further parts are followed by Analysis & Findings, then Conclusions, Suggestions & Limitation, then bibliography followed by questionnaires.

CHAPTER-I INTRODUCTION

The world of banking has assumed a new dimension at dawn of the 21st century with the advent of tech banking, thereby lending the industry a stamp of universality. In general, banking may be classified as retail and corporate banking. Retail banking, which is designed to meet the requirement of individual customers and encourage their savings, includes payment of utility bills, consumer loans, credit cards, checking account and the like. Corporate banking, on the other hand, caters to the need of corporate customers like bills discounting, opening letters of credit, managing cash, etc. Metamorphic changes took place in the Indian financial system during the eighties and nineties consequent upon deregulation and liberalization of economic policies of the government. India began shaping up its economy and earmarked ambitious plan for economic growth. Consequently, a sea change in money and capital markets took place. Application of marketing concept in the banking sector was introduced to enhance the customer satisfaction the policy of privatization of banking services aims at encouraging the competition in banking sector and introduction of financial services. Consequently, services such as Demat, Internet banking, Portfolio Management, Venture capital, etc, came into existence to cater to the needs of public. An important agenda for every banker today is greater operational efficiency and customer satisfaction. The mew watchword for the bank is pretty ambitious: customer delight. The introduction to the marketing concept to banking sectors can be traced back to American Banking Association Conference of 1958. Banks marketing can be defined as the part of management activity, which seems to direct the flow of banking services profitability to the customers. The marketing concept basically requires that there should be thorough understanding of customer need and to learn about market it operates in. Further the market is segmented so as to understand the requirement of the customer at a profit to the banks. For this reason I want to know the preference of B- school students towards public and private sector banks with respect to the various distinguishing as well as similar factors, features and services.

CHAPTER - II Literature Review

Evolution of Commercial Banks in India

The commercial banking industry in India started in 1786 with the establishment of the Bank of Bengal in Calcutta. The Indian Government at the time established three Presidency banks, viz., the Bank of Bengal (established in 1809), the Bank of Bombay (established in 1840) and the Bank of Madras (established in 1843). In 1921, the three Presidency banks were amalgamated to form the Imperial Bank of India, which took up the role of a commercial bank, a bankers' bank and a banker to the Government. The Imperial Bank of India was established with mainly European shareholders. It was only with the establishment of Reserve Bank of India (RBI) as the central bank of the country in 1935, that the quasicentral banking role of the Imperial Bank of India came to an end. In 1860, the concept of limited liability was introduced in Indian banking, resulting in the establishment of joint-stock banks. In 1865, the Allahabad Bank was established with purely Indian shareholders. Punjab National Bank came into being in 1895. Between 1906 and 1913, other banks like Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. After independence, the Government of India started taking steps to encourage the spread of banking in India. In order 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 taking over the Imperial Bank of India and integrating with it, the former state-owned and state-associate banks. Accordingly, State Bank of India (SBI) was constituted in 1955. Subsequently in 1959, the State Bank of India (subsidiary bank) Act was passed, enabling the SBI to take over eight former state-associate banks as its subsidiaries.

10

To better align the banking system to the needs of planning and economic policy, it was considered necessary to have social control over banks. In 1969, 14 of the major private sector banks were nationalized. This was an important milestone in the history of Indian banking. This was followed by the nationalization of another six private banks in 1980. With the nationalization of these banks, the major segment of the banking sector came under the control of the Government. The nationalization of banks imparted major impetus to branch expansion in un-banked rural and semi-urban areas, which in turn resulted in huge deposit mobilization, thereby giving boost to the overall savings rate of the economy. It also resulted in scaling up of lending to agriculture and its allied sectors. However, this arrangement also saw some weaknesses like reduced bank profitability, weak capital bases, and banks getting burdened with large non-performing assets. To create a strong and competitive banking system, a number of reform measures were initiated in early 1990s. The thrust of the reforms was on increasing operational efficiency, strengthening supervision over banks, creating competitive conditions and developing technological and institutional infrastructure. These measures led to the improvement in the financial health, soundness and efficiency of the banking system. One important feature of the reforms of the 1990s was that the entry of new private sector banks was permitted. Following this decision, new banks such as ICICI Bank, HDFC Bank, IDBI Bank and UTI Bank were set up. Commercial banks in India have traditionally focused on meeting the short-term financial needs of industry, trade and agriculture. However, given the increasing sophistication and diversification of the Indian economy, the range of services extended by commercial banks has increased significantly, leading to an overlap with the functions performed by other financial institutions. Further, the share of long-term financing (in total bank financing) to meet capital goods and projectfinancing needs of industry has also increased over the years.

11

Functions of Commercial Banks The main functions of a commercial bank can be segregated into three main areas: (i) Payment System (ii) Financial Intermediation (iii) Financial Services (i) Payment System Banks are at the core of the payments system in an economy. A payment refers to the means by which financial transactions are settled. A fundamental method by which banks help in settling the financial transaction process is by issuing and paying cheques issued on behalf of customers. Further, in modern banking, the payments system also involves electronic banking, wire transfers, settlement of credit card transactions, etc. In all such transactions, banks play a critical role. (ii) Financial Intermediation The second principal function of a bank is to take different types of deposits from customers and then lend these funds to borrowers, in other words, financial intermediation. In financial terms, bank deposits represent the banks' liabilities, while loans disbursed, and investments made by banks are their assets. Bank deposits serve the useful purpose of addressing the needs of depositors, who want to ensure liquidity, safety as well as returns in the form of interest. On the other hand, bank loans and investments made by banks play an important function in channeling funds into profitable as well as socially productive uses. (iii) Financial Services In addition to acting as financial intermediaries, banks today are increasingly involved with offering customers a wide variety of financial services including investment banking, insurance-related services, government-related business, foreign exchange businesses, wealth management services, etc. Income from providing such services improves a bank's profitability.

12

Public Sector Banks

Public sector banks are those in which the majority stake is held by the Government of India (GoI). Public sector banks together make up the largest category in the Indian banking system. There are currently 27 public sector banks in India. They include the SBI and its 6 associate banks (such as State Bank of Indore, State Bank of Bikaner and Jaipur etc), 19 nationalised banks (such as Allahabad Bank, Canara Bank etc) and IDBI Bank Ltd. Public sector banks have taken the lead role in branch expansion, particularly in the rural areas. From Table 1.1, it can also be seen that: Public sector banks account for bulk of the branches in India (88 percent in 2009). In the rural areas, the presence of the public sector banks is overwhelming; in 2009, 96 percent of the rural bank branches belonged to the public sector. The private sector banks and foreign banks have limited presence in the rural areas.

Private Sector Banks

In this type of banks, the majority of share capital is held by private individuals and corporates. Not all private sector banks were nationalized in in 1969, and 1980. The private banks which were not nationalized are collectively known as the old private sector banks and include banks such as The Jammu and Kashmir Bank Ltd., Lord Krishna Bank Ltd etc. Entry of private sector banks was however prohibited during the post-nationalisation period. In July 1993, as part of the banking reform process and as a measure to induce competition in the banking sector, RBI permitted the private sector to enter into the banking system. This resulted in the creation of a new set of private sector banks, which are collectively known as the new private sector banks. As at end March, 2009 there were 7 new private sector banks and 15 old private sector banks operating in India.

13

BANKING IN INDIA

1.

Central Bank

Reserve Bank Of India

State Bank of India, Allahabad Bank, Andhra 2. Nationalized Banks Bank, Bank of Baroda, Bank of India, Bank of Maharastra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian overseas Bank, Oriental Bank of Commerce, Punjab and Sind Bank, Punjab National Bank, Syndicate Bank, Union Bank of India, United Bank of India, UCO Bank, IDBI Bank

Catholic Syrian Bank, City Union Bank, Development Credit Bank, Dhanalaxmi Bank, Federal Bank, Ganesh Bank of Kurundwad, HDFC Bank, ICICI Bank, IndusInd Bank, ING Vysya Bank, Jammu and 3. Private Banks Kashmir Bank, Karnataka Bank Limited, Karur Vysya Bank, Kotek Mahindra Bank, Lakshmivilas Bank, Lord Krishna Bank, Nainitak Bank, Ratnakar Bank, Sangli Bank, SBI Commercial and International Bank, South Indian Bank, Tamil Nadu Merchantile Bank Ltd., United Western Bank, UTI Bank, YES Bank.

14

15

CHAPTER III RESEARCH METHODOLOGY

16

Research Objective:1) To gain an insight into the banking industry and financial products & services offered by the Public and Private sector banks. 2) To compare the services offered by Public and Private sector banks. 3) To gauge the preference of bank customers towards financial products & services offering by public and private sector banks.
4) To offer suitable marketing strategies to the banks in general.

Type of study:- Descriptive Research Sample:- Random Sampling Sample size:- A sample of about 50 respondents was collected for the study. Area of operation:- Colleges of Noida like IMS and Jaipuria Tools of data analysis:- MS WORD & MS EXCEL METHODS OF DATA COLLECTION The data collected for the purpose of the study has been collected from two main sources; they are primary data and secondary data;
(a) Primary data: The primary data will be collected through a Questionnaire

and personal interaction. The data was collected through questionnaire method. A detailed questionnaire was given to the employees which was the primary source of this study.
o

The questionnaire consisted of 11 questions

o The total sample of the employees survey was 50 respondents

(b) Secondary Data: The secondary data comprises of information from internal

records of the organization, text books, journals and various literature available in and outside of the corporation, presentation reports on various topics, standing orders.

17

CHAPTER-IV ANALYSIS & FINDINGS

Table(1) Financial Products & services

18

Table(1.1) D/D & Cheque clearance Public 16 32% Private 21 42% Both 13 26%

D/D & Cheque clearance

Series1, 3, 13, 26% Series1, 1, 16, 32%

1 2 3

Series1, 2, 21, 42%

From the above study people are more satisfied from private sector banks for financial products and services like D/D & Cheque clearance due to their better services and quick services provided by them in terms of speedy transactions, fully computerized facility and more working hours.

Table(1.2) Home & car loan Public Private Both

19

29 58%

14 28%

7 14%

Home & car loan

Series1, 3, 7, 14%

1 2 3 Series1, 2, 14, 28% Series1, 1, 29, 58%

For home & car loan people are preferring public sector banks more as compared to private sector banks because they are more aware and have more trust on them. As there is less risk and more safety for these durable products.

Table(1.3) Locker facility Public 27 Private 12 Both 11

20

54%

24%

22%

Locker facility

Series1, 3, 11, 22%

Series1, 1, 27, 54%

1 2 3

Series1, 2, 12, 24%

From the above study people are preferring public sector banks for locker facility as there is more safety, privacy and the staffs are more confidential as most of them are older age people. Apart from this there are certain rules followed by them as per RBI guidelines in terms of returning policy for any loss beard by their customers as per secondary data.

Table(1.4) General Insurance & Mutual Fund Public 15 30% Private 23 46% Both 12 24%

21

General insurance & Mutual Fund

Series1, 3, 12, 24% Series1, 1, 15, 30%

1 2 3

Series1, 2, 23, 46%

From the above study for General insurance and Mutual Fund private sector banks are more preferred by respondents as these banks are doing very well in their business due to better capital investments and returns earned by them from Market. Apart from this private sector banks have better relationship and partnership from other banks of different countries which bring new schemes at time to time so that more people can attracted.

Table(1.5) New Pension Scheme Public 36 72% Private 6 12% Both 8 16%

22

New Pension Scheme

Series1, 3, 8, 16%

Series1, 2, 6, 12% 1 2 3

Series1, 1, 36, 72%

As the people are getting more older and older they are more conscious about their life and future. They dont want to take risks and wish to remain in peace and try to spend their life more safely. so, public sector banks are more reliable and trustworthy. so, majority of people are preferring public sector banks for new pension scheme.

Table(2) Frequent Financial Transaction Public 19 38% Private 18 36% Both 13 26%

23

Frequent Financial Transaction

Series1, 3, 13, 26%

Series1, 1, 19, 38%

1 2 3

Series1, 2, 18, 36%

As there is very less margin between public and private sector banks for frequent financial transaction. But a bit public sector banks are doing well as compared to private sector banks as per above study. The reason for this is that people have better perception about public sector banks in terms of awareness, trust & reliability, safety and convenience of approach.

Table(3) Interest Rate Preference Table(3.1) Deposits Public 22 44% Private 18 36% Both 10 20%

24

Deposits

Series1, 3, 10, 20%

Series1, 1, 22, 44% 1 2 3

Series1, 2, 18, 36%

As per above study on the basis of interest rate public sector banks are more preferred by respondents in terms of deposit due to better reliability, safety, trust, awareness and proximity of locations.

Table(3) Interest Rate Preference Table(3.2) Loans Public 39 78% Private 6 12% Both 5 10%

25

Loans

Series1, 3, 5, 10%

Series1, 2, 6, 12%

1 2 3

Series1, 1, 39, 78%

Public sector banks are leading in terms of loans on the basis of interest rate as compared to private sector banks. As they are more reliable, trust winner and are known by majority of respondents.

Table(4) Rank For Bank Services on the basis of Proximity of Location 11 22% Convenience of Approach 14 28% Online Facility 25 50%

26

Rank of Bank services on the basis of

30

25

Series1, 3, 25

20

15

Series1, 2, 14

Series1

Series1, 1, 11 10

0 1 2 3

On the basis of above study online facility has been ranked 1st by respondents because it saves time and money both. Then convenience of approach has been ranked 2nd because at central place they get more banks when they do shopping in bulk and have better options. The proximity of location has been ranked last as they are getting the service of only one bank at a time which is not sure that it is working properly or not.

Table(5) Rate Promotional Activities Table(5.1) Print Media Public 1 1 2 6 3 24 4 17 5 2 2% Private 1 3 2 2 3 5 4 23 5 17 17%

1% 6% 24% 17%

3% 2% 5% 23%

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Print Media

Series1, 1, 1, 1% Series1, 10, 17, 17% Series1, 2, 6, 6% Series1, 3, 24, 24% 1 2 3 4 5 6 7 8 9 10

Series1, 9, 23, 23% Series1, 8, 5, 5% Series1, 7, 2, 2% Series1, 6, 3, 3% Series1, 4, 17, 17% Series1, 5, 2, 2%

From the above study in terms of print media private bank is doing better as compared to public as they are less awared and recognized by respondents.
Table(5) Rate Promotional Activities Table(5.2) Electronic Media Public 1 1 2 10 3 19 4 15 5 5 5% Private 1 2 2 3 3 3 4 19 5 23 23%

1% 10% 19% 15%

2% 3% 3% 19%

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Electronic Media

Series1, 1, 1, 1% Series1, 10, 23, 23%

Series1, 2, 10, 10% Series1, 3, 19, 19%

Series1, 9, 19, 19% Series1, 8, 3, 3% Series1, 7, 3, 3% Series1, 6, 2, 2% Series1, 5, 5, 5% Series1, 4, 15, 15%

1 2 3 4 5 6 7 8 9 10

In terms of electronic media private is again leader as they are using latest technology to reach to their customers. Apart from this they have well versed and well trained technical staffs who are doing very well in IT sectors.

Table(5) Rate Promotional Activities Table(5.3) Social Media Public 1 2 2 7 3 25 4 11 5 5 5% Private 1 2 2 3 3 7 4 21 5 17 17%

2% 7% 25% 11%

2% 3% 7% 21%

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Social Media

Series1, 10, 17, 17%

Series1, 1, 2, 2% Series1, 2, 7, 7%

Series1, 3, 25, 25%

Series1, 9, 21, 21% Series1, 8, 7, 7% Series1, 7, 3, 3% Series1, 6, 2, 2% Series1, 4, 11, 11% Series1, 5, 5, 5%

1 2 3 4 5 6 7 8 9 10

In private sector banks proper promotional activities should be taken up so as to make the population aware of the services provided by the banks even in rural areas. Apart from this social media is used as viral marketing which is digital word of mouth.

Table(6) Rate In Terms of Table(6.1) Speed of Transaction Public 1 1 2 13 3 21 4 13 5 2 Private 1 2 2 3 3 4 4 17 5 24 24%

1% 13% 21% 13% 2%

2% 3% 4% 17%

30

Speed of Transaction

Series1, 1, 1% Series1, 10, 24%

Series1, 2, 13% 1 2 3 4 5 6 7 8 9 10

Series1, 3, 21%

Series1, 9, 17% Series1, 8, 4% Series1, 7, 3% Series1, 6, 2% Series1, 5, 2% Series1, 4, 13%

In terms of speed of transaction private banks has been rated more as compared to public sector banks. Due to fully computerized facilities, more working hours (in case of ICICI bank, the number of working hours are 12), good investment advisory, efficient and co-operative staffs.
Table(6) Rate In Terms of Table(6.2) Ease of Procedure Public 1 1 2 12 3 26 4 8 8% 5 3 3% Private 1 2 2 4 3 6 4 18 5 20 20%

1% 12% 26%

2% 4% 6% 18%

31

Ease of Procedure

Series1, 10, 20, 20%

Series1, 1, 1, 1%

Series1, 2, 12, 12%

Series1, 9, 18, 18% Series1, 8, 6, 6% Series1, 7, 4, 4% Series1, 6, 2, 2% Series1, 4, 8, 8% Series1, 5, 3, 3%

Series1, 3, 26, 26%

1 2 3 4 5 6 7 8 9 10

In terms of ease of procedures private banks has been rated high as they are more systematic, well versed with computer usage and knowledge. Proper ambience develop healthy culture. Token system is used to minimize waiting lines in banks.

Table(7) Employees of Bank Table(7.1) More Courteous Public 1 2% Private 46 92% Both 3 6%

32

More Courteous

Series1, 3, 3, 6%

Series1, 1, 1, 2%

1 2 3

Series1, 2, 46, 92%

Employees of private sector banks are more courteous as they are professional and belong from professional education. Most of the staffs are young guns and they believe in making business and taking challenges.

Table(7) Employees of Bank Table(7.2) More Systematic Public 2 4% Private 43 86% Both 5 10%

33

More Systematic

Series1, 3, 5, 10%

Series1, 1, 2, 4%

1 2 3

Series1, 2, 43, 86%

In terms of systematic again private banks are leader. As they are new in market and need to capture more market as soon as possible. So for customer retention they are providing proper and caring service so that customer did not waste their time for the same work as well as bank employees time as time is precious for both.

Table(8) Interior Experience Table(8.1) Aroma Public 3 6% Private 42 84% Both 5 10%

34

Aroma

Series1, 3, 5, 10%

Series1, 1, 3, 6%

1 2 3

Series1, 2, 42, 84%

Table(8) Interior Experience Table(8.2) Lightning Public 2 4% Private 46 92% Both 2 4%

35

Lightning

Series1, 3, 2, 4%

Series1, 1, 2, 4%

1 2 3

Series1, 2, 46, 92%

Table(8) Interior Experience Table(8.3) Entertainment Public 1 2% Private 47 94% Both 2 4%

36

Entertainment

Series1, 3, 2, 4% Series1, 1, 1, 2%

1 2 3

Series1, 2, 47, 94%

Table(8) Interior Experience Table(8.4) Sitting Facility Public 6 12% Private 37 74% Both 7 14%

37

Sitting Facility

Series1, 3, 7, 14%

Series1, 1, 6, 12%

1 2 3

Series1, 2, 37, 74%

Table(8) Interior Experience Table(8.5) Refreshment Facility Public 1 2% Private 48 96% Both 1 2%

38

Refreshment Facility

Series1, 1, 1, 2% Series1, 3, 1, 2%

1 2 3

Series1, 2, 48, 96%

As per the above analysis private sector banks are flagship in terms of interior experience as they are providing facilities like better aroma, lightning system, entertainment (t.v.)/ slow music system, sitting facility and refreshments like tea and water. As we know sound mind in sound body so it reflects that healthy culture is developed by good physical evidence which not only pull customers but also enhance CRM.
Table(9) Rate on overall Basis Table(9.1) Reliability Public 1 3 2 6 3 11 4 14 5 16 Private 1 1 1% 2 4 4% 3 18 4 20 5 7

3% 6%

11% 14% 16%

18% 20% 7%

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Reliabilty

Series1, 1, 3, 3% Series1, 10, 7, 7% Series1, 9, 20, 20% Series1, 2, 6, 6% Series1, 3, 11, 11% 1 2 3 4 5 6 7 8 9 10

Series1, 4, 14, 14% Series1, 8, 18, 18% Series1, 7, 4, 4% Series1, 6, 1, 1% Series1, 5, 16, 16%

In terms of reliability public is more reliable as it is a wholly owned government sector. so there is safety and less risk. Majority of respondents do not want to shift from their present bank.

Table(9) Rate on overall Basis Table(9.2) Service Public 1 1 2 6 3 24 4 12 5 7 7% Private 1 1 1% 2 3 3% 3 5 5% 4 13 5 28

1% 6%

24% 12%

13% 28%

40

Service

Series1, 1, 1, 1% Series1, 10, 28, 28% Series1, 2, 6, 6% Series1, 3, 24, 24% 1 2 3 4 5 6 7 8 9 10

Series1, 9, 13, 13% Series1, 8, 5, 5% Series1, 7, 3, 3% Series1, 6, 1, 1%

Series1, 4, 12, 12% Series1, 5, 7, 7%

Service of private banks are more better as they are not trust winner like public banks but for customer retention they are providing quicker and faster services in market. Number of problem faced by the people is more in public sector banks.

Table(9) Rate on overall Basis Table(9.3) Privacy/Safety Public 1 1 2 4 3 5 5% 4 18 18% 5 22 22% Private 1 1 1% 2 4 4% 3 11 4 21 5 13

1% 4%

11% 21% 13%

41

Privacy/Safety

Series1, 1, 1, 1% Series1, 10, 13, 13% Series1, 2, 4, 4% Series1, 3, 5, 5% Series1, 4, 18, 18% Series1, 9, 21, 21% 1 2 3 4 5 6 7 8 9 10

Series1, 8, 11, 11% Series1, 7, 4, 4% Series1, 6, 1, 1%

Series1, 5, 22, 22%

In terms of privacy and safety public sector banks are winner as they are trust winner because of 100% government stakes in public sector banks.

Table(10) Mobile Banking & SMS Alert Properly Public 3 6% Private 19 38% Both 28 56%

42

Moble Banking & SMS Alert

Series1, 1, 3, 6%

Series1, 2, 19, 38% Series1, 3, 28, 56%

1 2 3

In Mobile banking and SMS alert facility both are doing well. As by getting stiff competition from private banks public banks has been more conscious for retention of customers as customers are now switching fir better services.

Table(11) Better Parking Facility Public 4 8% Private 34 68% Both 12 24%

43

Parking Facility

Series1, 1, 4, 8%

Series1, 3, 12, 24%

1 2 3

Series1, 2, 34, 68%

Private banks are providing better parking facility as majority of people who are doing banking in private banks are big tycoons for faster services. which brings more crowd there in their premises.

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CHAPTER-V CONCLUSION SUGGESTIONS LIMITATIONS

CONCLUSION
The customers now a days are not only exposed of what type of services are being provided by banks in India but in the world as a whole. They expect much more than what is actually being provided. So the new coming banking sector has to provide and cater to all the needs of the customers otherwise it is difficult to survive in the competition coming up. They not only expect the safety of money but also best ways to invest that money which need needs to be fulfilled. Banks need to have a better outlook towards to actually what customers are requiring. Entries of the private sector banks have made the competition tougher. If a bank is not functioning properly it is being closed. So it is difficult to face

45

these types of conditions. Here a simple philosophy can work that customers are God and we need to follow this to survive and serve better. The banking sector is poised for explosive growth. In this, scenario, it is imperative that banks adopt technology at an aggressive Pace, if they wish to remain competitive. so, according to this report banks have to outsource their technology infrastructure requirement, thus enabling early adoption and increased efficiencies. In the prevailing scenario, a number of banks have adopt a new deplopment strategy of infrastructure outsourcing, to lower the cost of service channels. As a result, other banks too will need to align their reinvented business models. The required changes at both the business and technology levels are enormous. In a highly competitive banking markets, early adopters are profiting from increased efficiencies.

SUGGESTIONS
Based on the study conducted, There are some of the suggestions given by the customers of how the modern banking should be. These are the comment given by them about the improvement of the banking sector in India. For Public Sector Banks:

Bank staff should be customer friendly and highly motivated to serve the general customer. As far as possible, banks should reduce its documentation process while providing loans by reducing time and fast service. Computerization should be done in banks at all level and the operators should be properly trained. Token system should be induced so as to minimize the waiting lines in the banks. Proper ambience in the banks can develop a healthy working culture. Quick services should be provided.

For Private sector Banks:

46

24 hours banking should be induced so as to facilitate the customers who may not have free time in the day time. It will help in facing the competition more effectively. More ATM coverage should be provided for the convenience of the customers. Customer care services should be provided by banks.

For overall banking sectors:

Banks should obey the RBI norms and provide facilities as per the norms, which are not being followed by the banks. While the customer must be given prompt services and the bank officer should not have any fear on mind to provide the facilities as per RBI norms to the units going sick. Banks should provide loan at the lower interest rate and education loans should be given with ease without much documentation. All the banks must provide loans against shares. Internet banking facility must be made available in all the banks. Prompt dealing with permanent customers and speedy transaction without harassing the customers Each section of every bank should be computerized even in rural areas also. No limit on cash withdrawls on ATM cards. The charges for saving account opening are high, so they should also be reduced. Customers generally complain that full knowledge is not granted to them. Thus the bank should properly disclose the features of the product and services to the customers. Moreover door to door services can also be introduced by bank. The need of the customer should properly be understood so that customer feels satisfied. The relationship value should be maintained. The branch should promote cooperation and coordination among employees which help them in efficient working.
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Maintenance of proper hierarchy should be done. A good hierarchy set up can ensure better results with in the bank. Banking sector is improving by leaps but still it needs to be improved. Proper and efficient relationship staffs having knowledge for one stop banking, customer friendly atmosphere, and better rate of interest are need of the hour the concept of privatization has overall improved in all the banks. Home banking will be order of the day. need of the hour. the concept of privatization has overall improved the services in all the banks. Home banking will be order of the day.

LIMITATIONS:

Some of the respondents of the survey were unwilling to share information. The research was carried out in a short period. Therefore the sample size and other parameters were selected accordingly so as to finish the work within the given time frame. The information given by the respondents might be biased because some of them might not be interested to give correct information. The officials of the bank supported me a lot, but did not have sufficient time to make the points more clear.

BIBLIOGRAPHY:-

1)

www.Google.com

2) Commercial Banking by Benton E.Gup & John W. Kolari

3)

www.scribd.com

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4)

www.zionsdirectnewsletter.com

5)

Banks and Banking by Anthony saunders

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