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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
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND
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 co- operation.
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.
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND
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.
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND
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:-
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND
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
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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
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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.
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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
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND
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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
COMPARATIVE STUDY ON SERVICES OF PUBLIC AND
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/7/29/2019 40386135 Comparative Study on Seavices of Public Sector and Private Sector Banks Opt
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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
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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