40386135 Comparative Study on Seavices of Public Sector and Private Sector Banks Opt

7/29/2019 40386135 Comparative Study on Seavices of Public Sector and Private Sector Banks Opt

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PREFAC

Someone has rightly said that practical experience is for better and closer

to the real world then mere theoretical exposure. Thepractical

experience helps the students view the real world closely, which in turn

widely influences their perceptions and argument their understanding of

the real situation.

Research work constitutes the backbone of any

management education program. A management student has to do research

work quite frequently during his entire span.

The research work entitle "COMPARATIVE STUDY ON

SERVICES OF PUBLIC SECTOR AND PRIVATE SECTOR

BANKS" aims to analyze various services provided by private sector

banks and public sector banks. For this purpose Bhagalpur city have

COMPARATIVE STUDY ON SERVICES OF PUBLIC AND


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COMPARAT VE STUDY ON SERV CES OF PUBL C AND PR VATE BAN

(1) INTRODUCTION OFTH

STUDY(2) INDIANBANKIN6

SYSTM

2.1FUNCTIONSOFBANK

2.2 PRODUCTS!SRVICSOFFRDBY

BANK(8) OBJCTIVSOFTHSTUDY

(4) RVIWOFLITRATUR

(5) RSARCHMTHODOLO6Y

5.1SAMPLPLAN

5.2LIMITATIONSOFSTUDY

(6) DATA ANALYSISANDITS

INTRPRTATION (7) FINDIN6S

(?) SU66STIONSAND

RCOMMDA

TION

S(9)

CONCLUSION

(10)APPNDICS

I I I I


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1 INTRODUCTION OF THE

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,

includespayment 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 andnineties consequent upon deregulation and liberalization of economic policies ofthe

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 ofmarketing concept in the banking sector was introduced to enhance the

customersatisfaction 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 caterto the needs of public. An important agenda for every banker today is greater

operational efficiency and customer satisfaction.T

he mew watchword for the bank is

The introduction to the marketing concept to banking sectors can be traced back toAmerican

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

?DEFINITION OF BANK

The Oxford dictionary defines the Bankas

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

order



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O r ga n i z a t io n a l S t r u c t u r e o f B a n k s in I n d i a :

In India banks are classified in various categories

criteria. The following charts indicate the banking structure:

according to differ rent

CLASSIFICATION OF BANKS

On the basis of Ownership

PUBLIC SECTOR BANKS

Nationalised banks or public banks dominate banking System in India. Thenationalisationof

banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. Themajor

objective behind nationalisation was to spread banking infrastructure in rural areas and

make available cheap finance to Indian farmers. Before 1969, State Bank of India (SBI) was

the only public sector bank in India. Despite the entry of many new domestic and foreign

privatebanks since liberalization, public sector banks continue to dominate the commercial


Reserve Bank ofIndia

Commercial Banks Co-operative Banks Development Banks

Nationalized Private Short-term Long-termcredit credit

Agricultural Urban EXIM Industrial AgriculturalCredit Credit


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PRIVATE SECTOR BANKS

Private sector banking in India received a flip in 1994 when Reserve Bank of India

encouraged setting up of private banks as part of its policy of liberalisation of the Indian

Banking Industry. 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 abank in the private sector. Private Banks have played a major role in the

development ofIndian banking industry. They have made banking more efficient and

customer friendly. In the process they have jolted public sector banks out of complacency

and forced them tobecome more competitive. India has a better banking system in place of

otherdeveloping countries.

CO-OPERATIVE BANKS

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

an equal share in these banks. Its shareholders manage the affairs of the bank.

2.1) According to Function

m

COMMERCIAL BANKS

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

short to business and in the process create money. Credit creation is the main function of

these banks.

FOREIGN BANKS

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

branches in India. These banks have their head offices in foreign countries. Their

principle function is to make credit arrangement or the export and the import of the country

and these banks deals in foreign exchange.

INDUSTRIAL BANKS

Industrial banks are those banks that offer long term and medium term loan to the industries

and also work for their development. These banks help industries in sale of theirshares,

debentures and bonds. They give loan to the industries for the purchase of land and

machinery.

AGRICULTURAL BANKS

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



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SAVING BANKS

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

put them to the productive use. In India department of post office functions a savings

CENTRAL BANK

Central Bank is the apex bank of the banking system of the country. It issues currency notesand acts a banker's bank. Economic stability is the principle function of this bank. In short, it

regulates and controls the banking system of the country. RBI is the Central Bank ofIndia.

STRUCTURE OF BANKING SYSTEM

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

commercial banking had grown under all these banking systems. To understand the

structure of banking system, let us take up various types of banking systems one by one.

These types are:

(1) UNIT BANKING

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

ofAmerica.

"An independent unit bank is a corporation that operates one office and that is not relatedto

(2) BRANCH BANKING:

This the most popular and important banking system. In branch banking, a bank has a large

network of branches scattered all over the country. Branch banking developed in England.

Subsequently most of the countries of the world adopted the system. In terms of branches,

the State Bank of India has emerged as one of the largest banks in the world. Under the

systembranches can operate without keeping large idle cash reserves. Branch Banking tends

tobring homogeneity in the prevailing Interest Rates. The choice of securities and

investments is larger.

With the growth of large scale business it is no wonder that the trend is almost every

country towards the branch banking i.e. big banks with a network of branches all over the

country.The Bank of America has now more than 500 branches in the state of California



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(3) CHAIN BANKING:

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

of unit banking. But the system suffers from certain limitations of its own. There maybe

a lack of co-ordination, proper control etc. The system is inflexible.

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

banks are brought under the control of the same management through a Holding Company.

Both the systems aim at gaining the advantages of large scale operations. The banks are

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

meet the loan requirements of the customer.

(5) CORRESPONDENT BANKING:

Under Correspondent banking, small banks serving local communities hold deposits with

joint banks serving in big cities. This kind of banking is prevalent in U.S.A. The

correspondent banks perform two important services of outstation cheque clearing and loan

participation for the respondent banks while they benefit for the deposit funds of

respondent banks.



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PRIMARY FUNCTIONS:

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

Fixed or Time Deposit Account: Cash is deposited in this account for a fixed

period. The depositor gets receipts for the amount deposited. It is called Fixed

Deposit Receipt. The receipt indicates the name of the depositor, amount of

deposit, rate ofinterest and the period of deposit. This receipt is not transferable. If

the depositorstands in need of the amount before the expiry of fixed period, he can

withdraw the same after paying the discount to thebank.

a.

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

small savings in a bank and might need to withdraw them occasionally. Banks

provide a certain rate of interest on the minimum balance kept by the depositor duringthe month.

Current Account: This type of account is kept by the businessman who are

required to withdraw money every new and then. Banks do not pay any interest on

this

account. Any sum or any number of withdrawals can be presented by such an account

c.



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

Overdraft Facilities: Customers of good trading are allowed to overdraw from their

current account. But they have to pay interest on extra amount they havewithdrawn. Overdrafts are allowed to provide temporary accommodation since the

extra amount withdrawn is payable within a short period.

a.

b.

c. Money at Call: It is the money lent for a very short period varying from 1 to 14 days.

Such advances are usually made to other banks and financial institutions only.

Money at call ensures liquidity. In the Interbank market it enables bank to make

adjustment according to their liquidity requirements.

d. Loans: Loans are granted by the banks on securities which can be easily disposed off

in the market. When the bank has satisfied itself regarding the soundness of the

party, a loan is advanced.

Cash Credit: The Debtor is allowed to withdraw a certain amount on a given

security. The debtor withdraws the amount within this limit, interest is charged by

thebank on the amount actually withdrawn.

e.

Discounting Bill of Exchange : It is another method of making advances by the

banks. Under this method, bank give advance to their clients on the basis of their

bills of exchange before the maturity of suchbills.

f.

Investment in Government Securities: Purchasing of government securities by the

banks tantamount to advancing loans by them to the Government. Banks prefer to

buy government securities as these are considered to be the safest investment. For

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

statutory liquidity ratio (SLR)

g.

3) Credit Creation: One of the main functions of banks these days is to create credit. Banks

create credit by giving more loans than their cash reserves. Banks are able to create credit

because the demand deposits i.e. a claim against the bank is accepted by the public in

settlement of their debts. In this process the bank creates money. For this reason Prof.

Sayers has called bank "the manufactures ofmoney."

4) Cheque system of Payment of Funds :A cheque, a negotiable instrument, which in fact is

a bill of exchange, drawn upon a banker, is the most popular credit instrument used by the

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

Although a cheque is not a legal tender money, they serves as a medium of exchange in a

limited way as it is a negotiable instrument.



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SECONDARY FUNCTIONS:

Besides the above primary functions, banks also perform many secondary functions such as

agency functions, general utility and social functions.

A) Agency Functions

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

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

collect and pay cheques, bills of exchange, promissory notes, hundies, rent, interest etc. On

behalf of their customers and also make payments of income tax, fees, insurance premium

etc. on behalf of the customers

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

purchase and sale of various securities like shares, stocks, bonds units and debentures etc. On

behalf of the customers, banks do not give any advice regarding the suitability or otherwise

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

customers on their advice. Sometimes banks also undertake income tax services on behalf

ofthe customers.

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

oneplace to another through cheques, drafts, mail transfers etc.

v) Representation and Correspondence : Sometimes commercial banks acts as

representatives or correspondents of the clients especially in handling various

applications. For instance, passports and travel tickets, booking of vehicles, plots etc.

vi) Billion Trading : In many countries, the commercial banks trade is billions like gold and

silver. In Oct 1997, 8 banks including SBI, IOB, Canara Bank and Allahabad Bank have

been allowed import of gold which has been put under open general licensed category.

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

promoting international trade. This function is mainly discharged by foreign

Exchange Banks.

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

customers to domestic and foreign traders and vice versa



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B) GENERAL UTILITY SERVICES

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

public. These services are :-

i)Locker Facilities : Banks provide locker facilities to their customers. People can keeptheirvaluables or important documents in these lockers. Theirannual rent is very nominal

ii) Issuing letters of credit : Bankers in a way by issuing letters of credit certify the credit

worthiness of the customers. Letters of credit are very popular in foreign trade.

iii) Acting as Underwriters : Banks also underwrite the securities issued by theGovernment

and Corporate bodies for a commission. The name of bank as an underwriter

iv) elp in Transportation of Goods: Big businessmen or industrialists afterconsigninggoods to their retailers send the Railway Receipt (Consignment Note) to thebank.

v) Issuing of gift cheques: Certain banks issue gift cheques of various denominations, e.g.

Some Indian banks issue gift cheques f the denominations of Rs. 21, 31, 51 and 101 etc.

They are generally issued free ofcharge.

vi) Dealing in Foreign Exchange: Major branches of commercial banks also transact

business of foreign exchange. Commercial banks are the main authorized dealers of

foreign exchange in India.

vii) Merchant banking Services: Commercial banks also render merchant banking

services to the customers. They help in availing loans from non-banking financial

Public SectorBanks

Reserve Bank of India - CentralBank

Bank ofIndia

DenaBank

IDBIBankIndianBank

Oriental Bank ofCommerce

Punjab NationalBank

United Bank ofIndia

AllahabadBank

AndhraBank

Bank ofBaroda



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Bank ofMaharashtra

CanaraBank

Central Bank ofIndia

CorporationBank

Indian Overseas Bank

Syndicate BankUnion Bank ofIndia

VijayaBank

Punjab & SindBank

PrivateBanks

AxisBank

Bank ofRajasthan

Catholic SyrianBankCity UnionBank

DhanalakshmiBank

FederalBank

Jammu & KashmirBank

Tamil Nadu MercantileBank

YesBank

ICICIBank

HDFCBank

PBBANK

HSBCBANKABNAMRO

DEUTSCHEBANK

2.2 ) P R OD U C T S / S ERV I CE S O FF ERE D B Y BA N K

Some of common available banking products are explained below:

1) Credit Card: Credit Card is "post paid" or "pay later" card that draws from a credit

line-money made available by the card issuer (bank) and gives one a grace period to pay.

Ifthe amount is not paid full by the end of the period, one is charged interest. Thesebills

are assembled in the bank and the amount is paid to the bank by the card holder totally

or by installments. The card holder need not have to carry money/cash with him when he

travels or



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Credit cards have found wide spread acceptance in the 'metros' and big cities.

Credit cards are joining popularity for online payments. The major players in the Credit

Card market are the foreign banks and some big public sector banks like SBI and Bank of

Baroda.

2) Debit Cards: Debit Card is a "prepaid" or "pay now" card with some storedvalue. Debit

Cards quickly debit or subtract money from one's savings account, or if one were taking

out cash.

When A CUSTOMER makes a purchase, he enters this number on the

shop's PIN pad. When the card is swiped through the electronic terminal, it dials the

acquiring bank system - either Master Card or Visa that validates the PIN and finds out

from the issuing bank whether to accept or decline the transaction. The customer never

overspread because the amount spent is debited immediately from the customers account.

So, for the debit card to work, one must already have the money in the account to cover

the transaction. There is no

The major limitation of Debit Card is that currently only some3000-

3) Automatic Teller Machine: The introduction of ATM's has given the customersthe

facility of round the clock banking. ATM card is a device that allows customer who has

an ATM card to perform routine banking transaction at any time without interacting with

human teller. This can be done by inserting the card in the ATM and entering the

ATM's are currently becoming popular in India that enables the customerto

withdraw their money 24 hours a day and 365 days. It provides the customers with the ability

to withdraw or deposit funds, check account balances, transfer funds and check statement

4) E-Cheques: The e-cheques consists five primary facts. They are the consumers,the merchant, consumer's bank the merchant's bank and the e-mint and the clearing process.This chequring system uses the network services to issue and process payment thatemulatesreal



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world chequing. The payer issue a digital cheques to the payee ant the entire transactionsare

The e-chequing is a great boon to big corporate as well as small retailers.Most

major banks accept e-cheques. Thus this system offers secure means ofcollecting

Electronic Funds Transfer (EFT): Many modern banks have computerised theircheque

handling process with computer networks and other electronic equipments. Thesebanks

are dispensing with the use of paper cheques. The system called electronic fund transfer

(EFT) automatically transfers money from one account to another. This system facilitates

speedier transfer of funds electronically from any branch to any other branch. In this system

the sender and the receiver of funds may be located in different cities and may even bank

with different banks. Funds transfer within the same city is also permitted. The

6) Telebanking: Telebanking refers to banking on phone services.. a customercan

access information about hislher account through a telephone call and by giving

the coded Personal Identification Number (PIN) to the bank. Telebanking is

5) Mobile Banking: A new revolution in the realm of e-banking is the emergence

mobile banking. on-line banking is now moving to the mobile world, giving everybody with

a mobile phone access to real-time banking services, regardless of their location.

The

According to this system, customer can access account details on mobile using

the Short Messaging System (SMS) technology where select data is pushed to the mobile

device. The wireless application protocol (WAP) technology, which will allow user to

surfthe net on their mobiles to access anything and everything. This is a very flexibleway of

Already ICICI and HDFC banks have tied up cellular service provides such as

Airtel, orange, Sky Cell, etc. in Delhi and Mumbai to offer these mobile banking services to

theircustomers.



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6) Internet Banking: Internet banking involves use of internet for deliveryof

banking products and services. With internet banking is now no longer confirmed

to the branches where one has to approach the branch in person, to withdraw cash

or deposits a cheque or request a statement of accounts. In internet banking, any

inquiry or transaction is processed online without any reference to the

ICICI bank was the first one to offer Internet Banking in India.

Financial Transaction on the Internet:

Electronic Cash: Companies are developing electronic replicas of all existingpayment

Automatic Payments: Utility companies, loans payments, and other businesses useon

Direct Deposits: Earnings (or Government payments) automatically deposited into bank

accounts, saving time, effort and money.

Stored Value Cards: Prepaid cards for telephone service, transit fares, highwaytolls,

Point of Sale transactions: Acceptance of AIM/Cheque at retail stores and restaurantsfor

payment of goods and services. Ihis system has made functioning of the stock Market

7) Cyber Banking: It refers to banking through online services. Banks with web site

"Cyber"branches allowed customers to check balances, pay bills, transfer funds, and apply

for loans

8) Demat: Demat is short for de-materialisation of shares. In short, Demat is a processwhere

at the customer's request the physical stock is converted into electronic entries in



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3. OBJECTIVES OF THE

This study has been conducted with a variety of important objectives in mind. The

followingprovides us with the chief objectives that have tried to achieve through the study. The

extent to which these objectives have been met could judged from the conclusions and

The Chief Objectives of this study are:

1.

2.

To find the bank sector that is largely availed by the customer.

To study the factors the factors influencing the choice of a bankfor

availing services.

To find and compare the satisfaction level of customers in public sector as well as

inprivate sectors bank.

To study the problem faced by customer.

To get suggestions for improvement or change in the services of

public and private sectorbanks.

To study what do people expect in the new era ofbanking

To study whether the customers are satisfied with theirservice

To know about the Customerpreferences

To give Suggestions to improve the services

3.

4.

5.

6.

7.

8.

9.



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4. REVIEW OF

The banking sector in India has made remarkable progress since the economic reforms in

1991. New private sector banks have brought the necessary competition into the industry and

spearheaded the changes towards higher utilization of technology, improved customer

service and innovative products. Customers are now becoming increasingly conscious of

theirrights and are demanding more than everbefore.

The recent trends show that most banks are shifting from a "product-centric model" to a"customer-centric model" as customer satisfaction has become one of the major

determinants of business growth. In this context, prioritization of preferences and close

monitoring ofcustomer satisfaction have become essential for banks. Keeping these in mind,

an attempt hasbeen made in this study to analyze the factors that are essential in influencing

the investment decision of the customers of the public sectorbanks.

Secondly, this study also suggests some measures to formulate marketing strategies tolure



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5. RESEARCH

Research is an art of scientific investigation. In other word research is a scientific andsystematic search for pertinent information on a specific topic. The logic behind taking

research methodology into consideration is that one can have knowledge about the method

and procedure adopted for achievement of objectives of the project. With the adoption of

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

The methodology adopted for studying the objectives was surveying the saving account

holders of Bhagalpur District. So keeping in view the nature of requirements of the study to

collect all the relevant information regarding the comparison of saving account of statebank

of India with other banks, direct personal interview method with structured questionnaire

was adopted for the collection of primary data.

Secondary data has been collected through the various magazines and newspapers andby

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

population. It refers to the techniques or the procedure the researcher would adopt in

selecting items for the sample. Sample design may as well lay down the number of items

to

be included in the sample i.e. the size of the sample. Sample design is determined before

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

POPULATION:- The persons holding saving account related to business class ofBhagalpur



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DATA COLLECTION

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

PRIMARY DATA

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

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

data from which the information can be collected.

QUESTIONNAIRE:-This method of data collection is quite popular. Here in ourresearch

we set 27 simple questions and request the respondents to answer these questions with

correct information.

RESPONDENTS:-Respondents helps in creation of more accurate idea about ourresearch.

We personally meet the respondents inside and outside thebanks.

SECONDARY DATA

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

people for some purposes.T

here may be various sources of secondary data such as-

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

informed with the profitability and growth of the bank. These annual reports helps us a lot

to get the latest data and other related information for our research. It tells us about the

increase or decrease in profits and otherfacilities.

JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS :-We also take into

consideration the journals and publications issued by the bank at different times. we come

to know about the Branches, ATM, locations and other useful information.

MANUALS AND BROACHERS OF DIFFERENT BANKS:-We take the help ofbank

staff and other people who gives us deep information and data which may not be available

at anywhere. They gives us there full cooperation.

INTERNET:-We also take into consideration the internet facility with which we collect lot

of latest information.



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5.1) SAMPLE PLAN:

SAMPLING UNIT:- STATE Bank of INDIA, Branch in BHAGALPUR city. Due to

nature of study, we also visited various different banks ICICI, HDFC, PUNJAB

NATIONAL BANK etc. of Bhagalpur District.

SAMPLING TECHNIQUE:- Stratified convenient sampling.

All the saving account holders were taken into consideration. Research was conducted on

clear assumptions that the respondents would give frank and fair answers in a pragmatic

way and without anybias.

SAMPLING DESCRIPTION:- In order to understand the nature and characteristics of

various respondents in this study, the information was collected and analyzed according to

their socio economic background which included the characteristic of their respondents like

education, age marital status and monthly income. This description shows that

respondents included in this survey belong to different backgrounds and this inturn increase

the scope ofthe study.


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Analysis & Interpretation: From the above study we find that nobody is below

20 age and 20% respondents are between 20-30 age group, 50% respondents are between 30-

40 age group, 20% respondents

between 50-60 age group.

is between 40-50 age group and 10% respondents are



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Analysis: From the above result we come to know that out of 100, 70 respondents are

male and 30 are female which is 70% and 30% respectively.

Interpretation: From the above data we conclude that most ofour

respondents are male.



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MARITAL STATUS

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

married and 67% respondents are unmarried.

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


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HIGHEST EDUCATIONAL QUALIFICATION:-

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

professional, 36% respondents are post graduate, 14% respondents are senior secondary and

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

& professional degree holders..


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OCCUPATION

Analysis: From the above analysis it is clear that 32% respondents are doing their ownbusiness, 28% are employees and 16% respondents belong to other category And 24% of

ourrespondents are students. Most of the respondents of our survey are Businessmen.

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

businessmen.


Particulars No of Particulars %age ofrespondents

Businessman 32 32%

Government Employee 28 28%

Student 24 24%Others 16 16%


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5.2) LIMITATIONS OF THE STUDY

m

m

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

Some of these are mentioned here under so that the findings of the study may be

understood in a properperspective.

The limitations of the studyare:

Some of the respondents of the survey were unwilling to share Information.

? The research was carried out in a short period of 1 week . Therefore ,the samplesize

and other parameters were selected accordingly so as to finish the work within

? The information given by the respondents might be biased because some ofthem

? The officials of the bank supported me a lot, but did not have sufficient time tomake



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6. DATA ANALYSIS AND ITS

1. The respondents were asked about

which banking sector's services do they avail.

Table1: Banking sector's services which the

respondents avail.

Number of

oth

30Public

Privat

e

Graph 1: Banking Sector's services which the respondents avails



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

of private sectors banks while those of the public sector banks were less.

2. The respondents were Asked about the

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

Private sector banks

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

G r a p h 2 . 1 :- Number of type of accounts held in Public sector banks

Analysis: 50% people own Saving Account, 15% own Current account, 6% demat,15%

fixed deposits account and 14% salary Account.



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p It was found that in case of public sector banks,

number of account hol ders owns Savings Account. After Savings Account most

preferred account is salary account preferred by people and the next priority goes to

fixed deposits Accounts.

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

Table 3. Number of respondents preferring different banks

Number of30

25

20ICICI Bank

HDFC Bank

State Bank Grup

Punjab Nati nalBank

15

10

5

0

ICICI HDFC Bank StateBank

Punjab

Nati

nal

PunjabAnd

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

State Bank Of India bank followed by ICICI bank. It is the bank which provides 12-

hour banking. Also the ATM machine is more as compared to the other private

sector banks.


Names ofBanks Number ofRespondents

ICICI Bank 24

HDFC Bank 22

State BankGroup 28

Punjab National Bank 20Punjab And Sind Bank 6


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Interpretation : From the above graph, it is seen that State Bank Of India is the most

preferred bank as compared to other Public and Private sector Banks. The reason for

preference of public sector bank is the minimum amount of deposit for saving

account.

4. The aim to ask this question was to know the reasons for their preference in

Table 4:- Reason for account in different banks

No. of

Frie

ly

ehavio

r

Locatio

elia ility/trst

Q ick fas

services

Graph 4:- Reasons for account in different bank

Analysis : From the above graph, it is seen that 55% of the respondents need quick

and fast services. And the next reason is friendly behavior of the staff which is 16%.

Interpretation: By analyzing this graph, we can conclude that most of the people is

influenced by the quick and speedy services provided by the bank and location isgiven less preference than others.

5. The respondents were asked about the facilities they were availing in public as well

as private sector banks:-


S


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Table 5.1 Number of people availing different facilities at public sector

banks:

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

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

atpublic sector banks was that ofAIM/Debit cards which hold 60% of respondents. It is

clearly observed by the graph that Insurance are neck to neck holding 20% of

respondent each.

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


S


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P ub li b a nk s

Tabl 6.1 Satisfacti n l

public sector banks

l of the customers regarding the facilities availed from the

ChartTitl g

54

4

22

2

1

Excelle Goo Very

Graph 6.1 Satisfaction level of customer regarding the facilities availed from the public

sector bank.

Anal

It

sis

t t i Ii

t

i

t t t

i I ti i II t t i iI

t j t ti i t i

Interpretation:

B

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

from the present banks:-

I i t i i Ii t

COMPARATIV STUDY ON S RVICES OF PUB IC AND


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

Interpretation: From this above Graph, we can conclude that the number ofrespondentsready to shift from their present bank is 28% while 70% customers seems to be satisfied

from their bank and hence willing to shift from their present bank to other.



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

.

Interpretation: It was find that most of the respondents are facing problem of

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

proble ms in Public banks



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7.

o More number of people have account with Public Banks. Majority of

the respondents whether in public sectors or in private sector banks

have savings account with banks.

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

banks.

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

sector banks.

o People are more satisfied from the private sector banks due to their

better services provided by them in terms of speedy transactions,fully computerized facilities, more working hours (in case of ICICI

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

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

Customer Relationship Manag ement.

o 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.

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

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

that of Demat account and foreign transfer of funds

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

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

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

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

better services than nationalized banks. 95% respondents favored

that private banks are providing better services than nationalize d

banks while 5% respondents are not agree with it.

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

said that the average balance requirement for operating their saving

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



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

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

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

attention to them and 10% respondents said that their problems are

not solved by bank executives. The remaining 50% respondents givea positive reaction in the favour of bank. 30% respondents favoured

that their problems are solved by bank executives and 20%

respondents said they are received with smile by bank executives.

So there is a mix response.

o Majority of the respondents said that the average time taken for

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

respondents said the average time taken for transaction is between

20- 25 minutes, 20% said it is be tween 10 to 25 min. and remaining

10% said that the average time taken for transaction by their bank

is 5 to 10 minutes.

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

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

doesn't organize any customer's meets to resolve their problems.

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

organize customer meets to resolve the problems of their

customers.

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

are ready to pay nominal charges for better services provided by

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

nominal charges.

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

updates them time to time about the latest facilities and remaining

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



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8.

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.

o 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.

o Banks should increase the rate of saving account

o 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.

o Fair dealing with the customers. More contribution from the

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

must be capable of understanding the problems of customers

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

o Prompt dealing with permanent customers and speedy transaction

without harassing the customers

o Each section of every bank should be computerized even in rural

areas also.

o Real time gross settlement can play a very important role

o More ATM coverage should be provided for the convenience of the

customers.

o No limit on cash withdrawals on ATM cards.



43/49

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

more people can be attracted. Even some gifts and prizes may be

offered to the customers for their retention.

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

customers who may not have a free time in the daytime. It will helpin facing the competition more effectively.

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

also be reduced.

o 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.

o The need of the customer should properly be understood so that

customer feels satisfied. The relationship value should be

maintained.

o The branch should promote cooperation and coordination among

employees which help them in efficient working.

o 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 the services in all the banks. Home banking will be

order of the day. Hence, some banks have even started like I CICI Banks



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9.

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

being provided by bank 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 these types

of conditions. Here a simple philosophy can wo rk that customers are God

and we need to follow this to survive and serve better.

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

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

to remain competitive . Mani Mamallan makes a case for banks to

outsource their technology infrastructure requirement, thus enabling early

adoption and increased efficiencies.

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

deployment strategy of infra structure 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 highly competitive banking

markets, early adopters are profiting from increased efficiencies



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10.

BIBLIOGRAPHY

Research Methodology

- ICFAI Publication

S.P.Gupta Statistics Book.

Websites:

ww w . e z i n e @ r t ic le s . c o m

ww w .goog l e s e a r c h . c o m

ww w . iup ind ia . o rg

ww w . e b s c oho s ts e a r c h . c o m

ww w . e m e ra ld i n s igh t. c o m

mailto:http://[email protected]://www.googlesearch.com/http://www.googlesearch.com/http://www.iupindia.org/http://www.iupindia.org/http://www.ebscohostsearch.com/http://www.emeraldinsight.com/http://www.ebscohostsearch.com/http://www.iupindia.org/http://www.googlesearch.com/mailto:http://[email protected]://www.emeraldinsight.com/


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QUSETIONAIRE ON COMPARATIVESTUDYON SERVICES OF PUBLIC AND

Name of the Bank (Branch): -

Name of the Customer: -

Address:-

A/C No: -

Part - A -

Prim a ry

eOMPARATIVE STUDY ON SERVIeES OF PUBLIe AND

l.No

Question Ans

Ye No

1. D y u ave an Ale------------------------------------------

------- (a)if yes------------------------------------------------

(b)if N

-----------------------------

-----------------------------

-----------------------------

-----------------------------

2. W at is y ur Ale n ? I f I n t e r e s t e d

-3. In w ic bank y u ave y

u're Ale

Public Bank Private Bank

4. W y did y u select re ardinits

(a) G dwilll

fait (b) Securityreas n c L

@ r


48/49


49/49

PA R - C -

Q UA N I A IV E

Y ur su esti ns, if any, f r impr vin Cust e Branc

NAM

SIGNATU

Account

Branc

Survey

Sl. N . Staff initiative t minimise waitinurs f t e cust mers at t e C unter

1. Payment f Cas , C eques, DemandDrafts

wit in15

15-30

M re tan

2. Receipt f Cas in t e acc unts / purcase f

wit in15

15-30

M re tan

3. Delivery f Demand Drafts / PayOrders / Bank

wit in20

20-30

M re tan

4. Delivery f Fixed Dep sit Receipts wit in20

20-30

M re tan

5. Updatin f Savin s / RD Pass Bks (W ere entries are n t m re)

wit in15min.

15-30

min

M re tan30

M rt an1

6. Issue f C eque B ks in Current / SBa/cs

wit in15min.

15-30min.

M re tan30

M ret an1

7. Issue f Statement f Acc unts(Manual)

Wit in7days

7-15 days M re tan15

8. Issue f Statements f Acc unts / PassB ks

Instantly M re tan

M re tan

9. Credit f pr ceeds f d mestictransfers

Wit in20

20-30min.

M re tan

10. Aff rdin credit upt Rs. 15,000/ - in

respect f utstati n c eques

Immediat

e

On

Reque

N t D ne

11. Time taken in realisati n f prceeds f utstati n c eques /

Wit in14

15-21

M re tan

12. Time taken in sancti nin f l ans aainst

Wit in30

30-60min.

M re tan

40386135 Comparative Study on Seavices of Public Sector and Private Sector Banks Opt

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