Canara Bank 2

7/31/2019 Canara Bank 2

1/28

Under the guidance of

Mr. Anurag Prakash.

(Senior Manager, Mktg. cell, CO, Ranchi)

Submitted by:Praveen Kumar(2010MB0021)


2/28

ABOUT THE ORGANISATION

CANARA BANK

Shri Ammembal Subba Rao Pai

Founder Canara Bank

"A good bank is not only the financial heart of the community, but also one with an

obligation of helping in every possible manner to improve the economic conditions of the

common people" -A. Subba Rao Pai.


3/28

INTRODUCTION

It was founded as 'Canara Bank Hindu Permanent Fund' in1906 by late Sri. Ammembal Subba Rao Pai.

Vision :- To emerge as a best practices bank by pursuing

global benchmarks In profitability, operational efficiency,asset quality, risk management and expanding the globalreach.

Mission :- To provide quality banking services with

enhanced customer orientation, higher value creation forstakeholders and to continue as a responsive corporatesocial citizen by effectively blending commercial pursuitswith social banking.


4/28

Founding Principles

To remove Superstition and ignorance.

To transform the financial institution not only

as the financial heart of the community but

the social heart as well.

To assist the needy.

To work with sense of service and dedication.


5/28

Significant Milestones

1st July 1906, Canara Hindu Permanent Fund Ltd. formally

registered with a capital of 2000 shares of Rs.50/- each, with 4employees.

In 1910 Canara Hindu Permanent Fund renamed as Canara

Bank Limited.

Canara Bank nationalized on July 19 1960. In 1976 1000th branch inaugurated.

In 1995-96 Became the first Bank to be conferred with ISO

9002 certification for one of its branches in Bangalore.

In 2003-04 Launched Internet & Mobile Banking Services. In 2004-05 100% Branch computerization.

As at March 2011, the total business of the Bank stood at

Rs.5,00,000 crore.


6/28

At present Canara Bank has 3273 branches.

2509 ATM covering 846 centres.

With 100% CBS, the Bank offers technology banking,

such as, Internet Banking, Mobile Banking and FundsTransfer through NEFT and RTGS across all branches.

Products & Services:

SAVINGS AND DEPOSITS LOANS

TECHNOLOGY PRODUCTS

MUTUAL FUNDS

INSURANCE

CONSULTANCY SERVICES

ONLINE TRADING


7/28

ORGANISATION STRUCTURE

HEAD OFFICE (BANGLORE)HEADED BY CHAIRMAN

CUM MD

CIRCLE OFFICE (34)HEADED BY GENERAL

MANAGER

REGIONAL OFFICE (26)

HEADED BY

DEPUTY GENERALMANAGER

BRANCH (3273)

HEADED BY CHIEF

MANAGER


8/28

Techno Products of Canara Bank1. Internet Banking:- Internet banking refers to

systems that enable bank customers to access accounts andgeneral information on bank products and services througha personal computer (PC) or other intelligent device.

2. Mobile Banking:- Mobile banking is a term used for

performing balance checks, account transactions, paymentsetc. via a mobile device such as a mobile phone. Mobilebanking today is most often performed via SMS or theMobile Internet but can also use special programs, calledclients, downloaded to the mobile device.

3. ATM cum Debit Card:- A debit card (also known as abank card or check card) is a plastic card that provides analternative payment method to cash when makingpurchases.


9/28

Background of Project Objective: A comprehensive study of penetration of

Canara Banks technological products (Internet Banking,Mobile Banking and ATM cum Debit Card) amongcustomers.

Research Methodology:

Research Design: Exploratory Research

Descriptive Research

Factor Analysis

Source of Data: Primary Data- Interview, Questionnaire

Secondary Data- Companys web site, Financial

articles, Previous research papers

Sample Design: Sampling- Convenient Sampling

Sample size- 100

Scale used- Likert Scale


10/28


11/28

Step 1:-LITERATURE REVIEW AND

PREVIOUS FINDINGS

53%

23%

4%2%

18%

Preferred Banking Channel

ATM

Internet Banking

Phone Banking

Mobile Banking

Branch

25%

43%

20%

10%2%

Age Group Distribution of OnlineBanking Users

18-25

26-35

36-45

46-60

61+

17%

83%

Gender-wise distribution

Female

Male

0 5 10 15 20 25 30 35 40

Checking account balance

View last three transactions

Status of cheques

Payment reminders

Request a cheque book

39.97

28.15

21.06

20.92

19.11

Preferred Mobile Banking Service

f


12/28

Importance of service quality dimensions

for i-Banking

0 1 2 3 4 5 6

Reliability

Accessibility

User-friendliness

Privacy/Security

Efficiency

Responsiveness

Fulfilment

Importance of service quality dimensions for i-banking

Importance of service quality dimensions for i-banking


13/28

Step 2:- RESEARCH DATA

83%

17%

Gender-wise no. Of customers

Male

Female

5%9%

21%

65%

Age-wise no. of customers

18-25 yrs

25-35 yrs

35-45 yrs

45 yrs & above

15%

34%

5%

39%

6%1%

occupation-wise destribution

businessman

service

Student

govt. empl.

Housewife

other

47%

34%

3%

16%

Education-wise Destribution

Matriculate

Graduation

Post Graduation

Other


14/28

38%

34%

19%

9%

Income-wise Destribution(PM)

Less than 15000

15000-25000

25000-35000

above 35000

F

IX

E

D

5

5

SB ,95

OD,2C

A

3

YES13%

NO

87%

Techno Products Awareness Ratio

77%

15%

6% 2%

Customer visit to Bank

1-2 times

3-4 times

5-7 times

more than 7 times


15/28

74%

4%

16%

6%

Source of information about techno

products

Staff

Friends

Brochure/AD

Other

33%

65%

2%

Are the Canara Bank techno products

usefull?

Yes

No

Can't say

68

42

37

21

16

Purpose of mobile/internet banking

Account Detail

Fund Transfer

Online Bill Payments

Online Enquiries

Other Services

36%

45%

71%

7%

Advantage of mobile/internet

banking

Anywhere anytimebanking

Fast reaction to market

developments

Overview over bank

account/s

Nothing


16/28

65

57

126

Disadvantage of mobile/internet banking

Security concerns / risks

Complicated / uncomfertable

usage of devices

hidden cost

Nothing

12

27

34

19

8

0

5

10

15

20

25

30

35

40

Excellent Good Average Satisfactory Poor

Service offered by the bank

Service offered by the bank


17/28

Step 3:-Factor Analysis1 2 3 4 5 6 7

PROXIMITY 0.545 0.118 -0.326 0.397 -0.072 -0.106 -0.113

TIME SAVING 0.535 -0.161 0.378 -0.230 -0.039 0.025 -0.094

REPUTATION OF BANK 0.443 0.667 0.178 0.456 0.005 -0.003 -0.098

TECHNO SAVVY 0.082 0.073 0.586 -0.197 0 -0.309 0.245

USER FRIENDLY 0.749 0.383 0.151 0.179 -0.426 -0.025 0.118

CONFIDENTIALITY -0.166 0.430 0.304 -0.111 0.328 -0.039 0.629

CUSTOMIZATION 0.052 0.362 -0.382 0.057 0.041 0.503 0.241

HASSLE IN PROCESSING 0.594 -0.064 -0.016 -0.373 0.013 0.021 0.110

AWARENESS 0.059 -0.202 0.155 0.245 0.629 0.358 -0.269

SECURITY 0.432 0.261 0.272 0.009 -0.151 0.025 0.581

BEHAVIOR OF STAFF 0.430 -0.020 -0.130 -0.014 0.450 0.038 0.183

SERVICE OF PRODUCT -0.429 0.075 0.107 0.012 0.211 0.558 -0.272

CHEAPER -0.219 -0.046 0.317 0.674 0.123 0.380 0.052

DEXTERITY 0.162 0.515 0.655 -0.337 0.009 -0.257 -0.196

PRO-ACTIVENES OF BRANCH HEAD 0.001 -0.407 0.086 0.129 0.582 -0.199 0.137

BRAND IMAGE -0.242 0.756 0.217 -0.427 -0.113 0.418 -0.069


18/28

DATA INTERPRETATION

Step 1:- of customer use i-banking

Mostly males having age group 26-35 yrs use

i-banking. Satisfaction from service they are getting, but

have problem in using it.

Mobile banking users are less, mostly use forchecking Acc. Balance.

53% customers use debit card.


19/28

Step 2:- 65% customers having age 45 and above, so bank have to give proper

explanation about the products.

Only 17% of the customers are female. But they may be potentialcustomer because most of the women who do banking are well literate.

39% of the customers are govt. employee followed by 34% is in service,15% are in business and only 5% are students.

47% customers are matriculate followed by 34% graduate and only 3% arepost graduate.

38% customers are having income less than 15000per month followed by34% having income 15000 to 25000.

SB account holders are 95%, and more than half of the customers have FD.

Only 13% customers know about the Canara Bank techno products. Soaggressive promotion campaign is required.

74% customers come to know about the techno products through Bankstaff. so promotion through bank employee is economical and favourablefor bank.

Out of sample of 100 customer 68 customer use Internet /Mobile Bankingfor account detail,42 use for fund transfer,37 use for online bill

payment,21 use for online enquiries and rest for other services.


20/28

Step 3 (factor analysis) :-Under the guidance of our branch manager

Mr. A.K. Mishra we tried to identify 16variables which a person considers for takingtechno product which were:

1. Proximity

2. Time Saving

3. Reputation of the bank

4. Techno Savvy

5. User friendly6. Confidentiality

7. Customization

8. Hassle in processing

9. Awareness

10. Security

11. Behavior of staff

12. Service of Product

13. Cheaper

14. Dexterity

15. Pro-activeness of branch

head

16. Brand image


21/28

From the Factor analysis the 16 variables has been reduced to 7

Factors:-

Now taking 0.5 as the cut-off for deciding the variables of each factor

we come to seven factors and one redundant variables:

1. Factor1 (easiness)

Proximity

Time saving

User friendlyHassle in processing

1. Factor2 (market image)

Reputation of bank

Brand image3. Factor3 (User Ability)

Dexterity

Techno Savvy


22/28

4. Factor4 (Service Charges)

Cheaper

5. Factor5 (operational behaviour)Awareness

Pro-activeness of branch head

6. Factor6 (Product Quality)

Customisation

Service of product

7. Factor7 (Security Aspect)

Confidentiality

Security

The redundant variable is: Behaviour of Staff


23/28

Total variance summarized by the five

factor model is 72.572%Eigenvalue(amount of

variance explained):

Eigenvalue of factor1: 2.422







Percentage of varianceexplained by each factor:

Factor1= 15.137 %

Factor2= 15.062 %

Factor3= 9.975%

Factor4= 9.193%

Factor5= 8.306%

Factor6= 7.693%

Factor7= 7.206%

CONCLUSION


24/28

CONCLUSION:- Customers which are maximum in number (i.e. 45 &

above) have only 10% contribution in online banking

user. this age group people want more security thatswhy they dont want to use new product

As most of the customers are not so well educated so

they find techno product problematic. 95% customers are having SB account, so this shows

that they dont use bank very frequently.

awareness about the products is very low so bank

should pay extra attention in the promotion of theproduct.


25/28

Conclusion Contd..

factor 1 explaining more percentage of

variance than others so we should lay more

emphasis on the variables of factor 1 while

developing the marketing strategy for the

techno products.

We should consider other factors too

according to the percentage explained by

them as our total variance explained was only72%, so more variables are there which a

customer considers while taking these

products from bank


26/28

RECOMMENDATIONS:-1. In order to cut the operation cost of a branch and attract customer in this

highly competitive industry, Canara Bank must concentrate on thepopularization of its technological services.

2. As mass advertisement is not a wise idea for this non-profitable product,awareness of Canara Banks techno-product among customers should bethrough bank staffs.

3. To attract more customers in i-Banking, Canara Bank must introduce some

integrated services (Mobile recharge, Ticket booking etc.)

4. In case of Canara Banks mobile banking, special focus should be made onthe security issues of SMS banking. Developing Mobile applicationssupported on JAVA enabled phone increases the security of mobilebanking as well as it provides the facility of using more services.

5. Pull based mobile banking services are rarely used. It should concentrateon free-of-cost mobile services more.

6. As the main barriers of ATM cum Debit cards popularity is less number ofATM and lack of ATM maintenance, the bank should consider thesepoints.

LIMITATIONS OF THIS RESEARCH


27/28

LIMITATIONS OF THIS RESEARCH:-

There are several limitations of this research. These limitationsshould be considered while taking any decision depending on these

research findings. The major limitations are given below:

1. Our data is based on Canara Banks Saraidhela branch and for timeconstraints, it was not possible to collect data from more branches.

2. As the branch is in semi-urban area. So, the research findingscannot be generalized for all areas.

3. The usage of Canara Banks techno product is based on customersword-of-mouth. The accuracy of such data is always verifiable.

4. There also can be biasness in survey as we were student internssome people might have taken me casually while entertaining us.


28/28

THANK YOU

Documents

Canara Bank 2