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1.1 Scope of the study:
The study would try to throw some insights into the existing services provided by the banks and the gap between the customer expectations, perceptions and the actual state of performance. The results of the study would be able to recognize the lacunae in the system and thus provide key areas where improvement is required for better performance and success ratio.
1.2 Research Objectives:
(1) To find out the level of expectation and the level of perception of the customers from the services offered by the banks. (2) To compare the level of perception and expectation of the services offered by the banks. (3) To know which service quality dimension the bank is performing well and in which dimension it needs improvement. (4) To know the preference towards the public sector and private sector banks.
Targeted banks: ICICI,HDFC,SBI,BOB Sampling Frame: All the customers of four banks in Ahmedabad. Sampling Unit: Any customer of four banks in Ahmedabad. Sampling Area: Ahmedabad. Sampling Method: Non- Probability Convenience Sampling
Sample Size: 200 Respondents
Bank ICICI HDFC SBI BOB
Respondents 50 50 50 50
1.4 Data Sources:
Primary Data: It is collected through structured questionnaire by conducting survey. Secondary Data: Internet, journals, books, magazines, etc.....
1.5 Research Design:
Our research is Descriptive in nature as the banking industry is well-developed in India and lot of research has already been done in this area.
1.6 Research tool :
It is used to determine whether there is a significant association between the two variables. • Chi-Square test of independence The test is applied when there are two categorical variables from a single population. which initially included 10 service quality dimensions. Usually. In some studies the five dimensions of the instrument (determinants) have been found to be unstable across different types of services. or Independent). This approach consists of four steps: (1) state the hypotheses. there are some controversies in its applicability across different service industries. SERVQUAL is an instrument for measuring how customers perceive the quality of a service. but still. responsiveness. assurance and empathy. (3) analyze sample data. the five dimensions of the instrument are described through the use of 22 attributes an “respondents are asked to state (on a seven-point scale from “Strongly disagree” to “Strongly agree”) what they expected from the service and how they perceived the service. which were later reduced to the following five: tangibles. Therefore. and (4) interpret results.• SERVQUAL Analysis. As a result of their study they developed the SERVQUAL instrument for measuring service quality. In the mid-1980s Berry and his colleagues Parasuraman and Zeithaml began to investigate what determines service quality and how it is evaluated by customers. in other words on the comparison of customers’ expectations with their experiences from the service. in an election survey. The instrument is based on the idea of the disconfirmation model. Republican.  . We could use a chi-square test for independence to determine whether gender is related to voting preference. For example. voters might be classified by gender (male or female) and voting preference (Democrat. the SERVQUAL tool should be applied very carefully and the set of determinants and attributes used should be adapted to the specific situation. reliability. (2) formulate an analysis plan.” This instrument has been widely used by researchers.
1. In our study we have included 50 customers of each bank because of time limit. 1. Ho: Preference towards public/private sector banks and age group are independent of each other.7 Hypothesis: A chi.square test for independence has been conducted for knowing the relation between the age group and the preference towards the two types of banks. H1: Preference towards public/private sector banks and age group are dependent of each other.  . Some of the respondents did not like to respond.8 Limitations of the Study: Respondents may give biased answers for the required data.
CHAPTER 2 GLOBAL BANKING INDUSTRY  .
The traditional advantage of physical proximity to clients given by extended networks of branches has vanished. and investment banking. Banks that lent heavily to Asia in search of better returns than those available in Western markets are now being blamed for bad credit decisions. The Asian crisis has renewed interest on credit risk management casting doubts on the effectiveness of current credit regulations. Banks have to compete with money market mutual funds for deposit business. Increasing competition has forced banks to search for more income at the expense of more risk. Diversification. Technological changes have also heightened competition by making it easier to imitate bank services. Because of this strong competition. commercial banks in the United States and Europe have been forced to cut costs and branches while diversifying into pensions. has not always proved to be an effective strategy.The world of commercial banking is undergoing a deep transformation as a result of marketable instruments competing with loans and demand deposits.  . In the United States. commercial banks are struggling to make acceptable margins from their traditional business entering into investment banking. As margins are squeezed. and many banks have had to revert to a concentrated business. many banks call themselves financial service companies even in their reported financial statements. commercial papers. asset management. however. and medium-term notes for bank loans. insurance.
Increased competition. The identity crisis of banks—especially commercial banks—stems from the deep and rapid changes in their traditional body of activities (particularly retail and corporate banking). Only 15 to 20 years ago. diversification. providing opportunities for diversification. banks—like all other financial service companies—must redefine themselves in terms of the products they offer and the customers they serve.) are vanishing. Most likely what is dying is the oldfashioned concept of the bank and a new scenario is emerging. On the other hand. As banks undertake new activities. leading some analysts to wonder whether banks are dying. if not vanishing. Diversification among sub industries is defining an environment where banks compete with other financialservice companies to provide mutually exclusive products and services to the same customers. and new geographic markets mean that both the spectrum of risks and the risk profile for banks are dramatically changing. new products. they also incur new risks. Since boundaries among sub industries are weakening. Now this percentage has fallen to 60%. All these changes are creating an identity crisis for old-fashioned bankers. etc. investment banking. All these factors represent a new challenge for commercial banks. DEFINING A BANK IN 2010 The scenario commercial banks face today differs greatly from that of the past. “What is a bank today?” The question is difficult. private banking. Traditional branch banking is under the threat of new competitors and technological innovation. most Western banks generated 90% of revenue from interest income. and banc assurance are the most profitable and fastest growing segments of the financial service industry. sometimes as low as 40%. Illustrating what an entity does or serves for often is a useful way to define it. not just once but many times. asset management. such as fee-based income from  . private banking. The way banks pursue this redefinition is through a strategic repositioning in the financial service industry. Banks are changing as economic markets integrate. leading to the key question. New sources of income. investment banking. but evidence suggests that the concept of banking is being modified and the traditional barriers among financial service Sub industries (retail banking. insurance.These examples illustrate how commercial banks are reinventing themselves. provided this definition still has a unique meaning.
for example. The following trends are affecting the banking industry and most likely will shape the competition in the next several years: • The market share for financial services that banks hold is declining. Not casually. Capital markets are playing a key role in defining the bank of the twenty-first century. is estimated to be worth US$14 million. AAA ratings for banks have disappeared and consequently the importance of market risk management is being emphasized. mutual funds. with a few exceptions. As retail and corporate banking become less and less profitable. market risk and credit risk on traded assets— requires competence and expertise.S. The management of these new types of risk—typically. This has created much tougher competition among financial service companies and has forced banks to find new and diversified sources of income. Alliances and takeovers are occurring also on a transatlantic basis. and finance companies are getting a growing share of available customers. banks are diversifying into new businesses to stop the decline of profits. Future competition will not be played in the classic retail banking industry that. Hence. while securities firms. is only slightly profitable. confirming the global characters of these two sub industries (the most related to global capital markets). are becoming increasingly relevant for the income statements of commercial banks. investment banks are merging among themselves and with asset management firms. with an annual growth rate of about 14% up to 2010. Global competition will take place in asset management and investment banking. The traditional core business of commercial banks has been retail and corporate banking. In the  . The drawback is that volatility of earnings has dramatically increased. During the same period. but they are also making banks riskier. Derivative based earnings for larger commercial banks now account for about 15 to 20% of the total earnings. huge U. the risk profile of commercial banks is changing as a consequence of diversification. In fact. The well-known phenomenon of disintermediation that has taken place in all Western countries since the 1970s has progressively reduced the monopoly of banks over the collection of savings from customers. Investment banking. at least in continental Europe (but not in the United Kingdom). the pattern of banking activities has changed through interactions with the developing security markets.investment services and derivatives.
commercial banks will have to exploit new sources of income: Offering new services (selling mutual funds or insurance policies). the share of total assets held by banks and other depository institutions relative to all financial intermediaries fell from 56% in 1982 to 42% in 1991. Entering new geographic markets yielding higher returns. • Disintermediation is making traditional banking less and less necessary. Market risk management models must become an integral part of a bank’s risk management culture. The natural shrinkage of the market share held by commercial banks started this process in the past decade. Banks will face growing competition from financial service companies and nonbank firms. and this downward tendency is likely to continue.  . • To remain competitive.Charging customers with noninterest fees. Entering into joint ventures with independent companies. leading to consolidation. Offering new services through the phone and the web. • Banks will need more expertise to manage new sources of risk.United States. but it has dramatically accelerated in the past few years because of global competition.
more flexible rivals. two credit cards. with far greater operating costs than their new. but that the competitive scenario is changing. These innovations make branch networks less important and national boundaries irrelevant. Tesco Personal Finance offers only a savings account and a credit card. In the United Kingdom. These trends do not indicate that traditional branch banking is going to die. High-street banks have expensive branch networks and relatively outdated procedures. but aims to expand its range.RETAIL BANKING The two main forces changing the competitive environment in retail banking are technological change and aggressive new competitors: 1. Technological change is creating huge problems for traditional banks with extended and costly branch networks.  . Sainsbury’s and Tesco. 2. the country’s two biggest retailers. New unrelated competitors are entering the retail banking market. with more services to follow. Sainsbury’s Bank offers a savings account. The major technological issues affecting the retail banking business are the rise of telephone banking and the impressive diffusion of the Web-based banking. is gaining a growing and growing importance. Computer banking. and personal loans and mortgages. either through the Internet or proprietary networks. respectively. have gone into partnership with the Bank of Scotland and the Royal Bank of Scotland.
PRIVATE BANKING One of the most interesting trends affecting the banking industry is the development of domestic private banking services. converted building societies. to customers. • Risk management  . once provided only to aristocrats. • Culture needed to manage private banking. relatively speaking. high income. investment banks. are gaining popularity and seem to be an attractive. These services. at least partially. commercial banks must be aware of actual and potential competitors including traditional private banks. Risks of adverse market movements are transferred. while banks increase their fee-based income. Retail banks are no longer targeting only the super rich. but also people with. but also adds new problems in the following areas: • Bank organization. Private banking creates opportunities for commercial banks. Nevertheless. fast-growing market. Private banking is basically an asset management service and represents a natural area for banks in time of margin squeezing and increased competition. and insurers. who hold a small proportion of the total wealth.
e. or are in the process of developing. facilities in the world’s leading markets. The aim is to provide multinational corporations with a broad range of financial service products. financial lending and fund management. thus entering in direct competition with prestigious investment houses.GLOBAL INVESTMENT BANKING Investment banking is by far the most globalized segment of the financial service industries.  . at both the institutional and retail levels. Commercial banks today are starting to offer investment-banking and merchant banking services to larger corporations. • Offering hedging services against market risk. commercial banks in search of globalization are boosting takeovers of investment banks. including conventional investment banking such as merger and acquisition (M&A) advice. These services include: • Identifying possible merger targets. To provide customers with a broader spectrum of services. • Financing acquisitions of other companies. • Dealing in customers’ securities (i. All the major competitors have developed. almost irrespectively of the service needed or required. • Providing strategic advice. security underwritings).. Relationship banking is replacing transaction-based banking: What is important is to increase the loyalty of the client to the bank. market trading.
Banks. there will be an increase in the importance of private pensions. private banking. • The growing importance of a clear strategic intent in the banking industry. corporate banking) or specific geographic area. others are focusing on some specific market segment (retail banking. primarily to retain their customers. While some banks are opting to offer a vast variety of products/services on a global scale. mutual funds. large department stores in the United Kingdom have entered the market for personal and mortgage loans. In the retail banking industry. and private banking operations. thanks to a progressive relaxation of regulations and huge inter-industry acquisitions. Since Western governments need to cut expenditures for old-age benefits to keep deficits under control. The following trends can be outlined: • The technological breakthrough caused by the eruption of e-banking and e-finance. • A slowing population growth and increasing average life expectancy and per capita income. especially commercial banks.  . • Worldwide consolidation and consequent restructuring. • New competitors are entering the financial service business. will be obliged to rethink their strategic positioning.Diversification is not the whole story. To face the rising costs and squeezing margins created by competition. •“Contamination” among different industries. • Increasing competition in terms of both markets (geographic diversification) and products. RECENT TRENDS IN THE GLOBAL BANKING INDUSTRY The global banking industry has been undergoing deep transformation. investment banks need partners with large amounts of available capital.
A significant portion of its assets must be outside its original domestic market. High degree of geographic diversification.g. particularly in computer systems. CONTAMINATION—THE RISE OF GLOBAL PLAYERS Consolidation is also taking place also on an interindustry basis. front-line service staff has to sell a richer mix of products. Top managers have to handle a far more complicated business.  . The relaxation of the Glass-Steagall Act in the United States. To be a global player. But complexity explodes. It must be big enough to play on a global basis. By interindustry consolidation. 2. insurance companies acquiring commercial banks or commercial banks acquiring Investment banks). and similar processes of deregulation in many other leading countries. Size. in addition to the more traditional credit risk and interest rate risk. It must cover the full spectrum of financial products and services. There can be cost-saving potential.These trends are having and will have a major impact on banks’ and financial institutions’ risk management process. is forcing even commercial banks to dedicate growing attention to market risk management and liquidity risk management. 3. we mean M&As taking place between firms of different sub industries in the financial service industry (e. a banking conglomerate must satisfy three characteristics: 1.. High degree of contamination. Contamination also means that firms in the different sub industries will face risks that were once specific to another sub industry.
CHAPTER 3 INDIAN BANKING INDUSTRY  .
The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. public sector banks have long been the supporters of agriculture and other priority sectors. Singapore. Hong Kong. Private Banks have been fast on the uptake and are reorienting their strategies using the internet as a medium The Internet has emerged as the new and challenging frontier of marketing with the conventional physical world tenets being just as applicable like in any other marketing medium. private banks and specialized banking institutions. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering. the banking industry has so far acted as an efficient partner in the growth and the development of the country. and they also attract most of the savings from the population. Since the nationalization of banks in 1969. The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the multifarious challenges of globalization. Dominated by public sector. Philippines etc.  . Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive players capable of meeting the multifarious requirements of the large customer’s base. Driven by the socialist ideologies and the welfare state concept.Banks are the most significant players in the Indian financial market. They act as crucial channels of the government in its efforts to ensure equitable economic development. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. The Indian banking can be broadly categorized into nationalized (government owned). They are the biggest purveyors of credit. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments.
Most of the banks in this category are concentrated in the high-growth urban areas in metros  . The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. private banks and specialized banking institutions. Their focus has always centered around the customer – understanding his needs. These banks have generally been established by promoters of repute or by ‘high value’ domestic financial institutions. The liberalize policy of Government of India permitted entry to private sector in the banking. the industry has witnessed the entry of nine new generation private banks. The nationalized banks (i. Industry estimates indicate that out of 274 commercial banks operating in India. The Indian banking can be broadly categorized into nationalized. The Reserve Bank of India acts as a centralized body monitoring any discrepancies and shortcoming in the system. Today. the private banks corner almost four per cent share of the total share of deposits.The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity.e. The private sector bank grid also includes 24 foreign banks that have started their operations here. government-owned banks) continue to dominate the Indian banking arena.e. It is the foremost monitoring body in the Indian financial sector. preempting him and consequently delighting him with various configurations of benefits and a wide portfolio of products and services. The major differentiating parameter that distinguishes these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. these banks have gained considerable customer confidence and consequently have shown impressive growth rates. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The popularity of these banks can be gauged by the fact that in a short span of time. borrowing and lending). 223 banks are in the public sector and 51 are in the private sector.
A strategy that has allowed these banks to concentrate on few reliable high net worth companies and individuals rather than cater to the mass market. this statutory requirement has translated into lower deposit mobilization costs and higher margins relative to public sector banks.  . The private banks with their focused business and service portfolio have a reputation of being niche players in the industry. these banks have leveraged on their strengths and competencies viz. Management. operational efficiency and flexibility. With efficiency being the major focus.(that account for approximately 70% of the total banking business). With the Reserve Bank of India allowing these banks to operate 70% of their businesses in urban areas. superior product positioning and higher employee productivity skills. These well-chalked out integrates strategy plans have allowed most of these banks to deliver superlative levels of personalized services.
The present era in banking may be taken to have commenced with establishment of bank of Bengal in 1809 under the government charter and with government participation in share capital. then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector.PEST ANALYSIS POLITICAL/ LEGAL ENVIROMENT Government and RBI policies affect the banking sector. to attract the farmer’s votes. Sometimes the government appoints various chairmen of the banks. Sometimes looking into the political advantage of a particular party. Every year RBI declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. others followed. Allahabad bank was started in the year 1865 and Punjab national bank in 1895. the Government declares some measures to their benefits like waiver of short-term agricultural loans. Various policies are framed by the RBI looking at the present situation of the country for better control over the banks. therefore.  . If in the Budget savings are encouraged. If the FDI limits are relaxed. Various banks in the cooperative sector are open and run by the politicians. In India. and thus. booming the economy. They exploit these banks for their benefits. By doing so the profits of the bank get affected. then more FDI are brought in India through banking channels. banking has existed in one form or the other from time to time. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. ECONOMICAL ENVIROMENT Banking is as old as authentic history and the modern commercial banking are traceable to ancient times.
SOCIAL ENVIROMENT Before nationalization of the banks. To adopt the social development in the banking sector it was necessary for speedy economic progress. keeping in mind both the national and social objectives. their control was in the hands of the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India. etc. which is free from domination of law. But the banks do not mind incurring these costs because of the kind of business these clients bring for the bank. Now the banks provide various types of loans to farmers. working women. Accordingly.  . and traders. Banks having big clients or big companies have to provide services like personalized banking to their clients because these customers do not believe in running about and waiting in queues for getting their work done. and in which opportunities are open to all. consistent with social justice. in democratic political system. Banks have changed the culture of human life in India and have made life much easier for the people. They also provide education loan to the students and housing loans. In 1969 government nationalized 14 banks. TECHNOLOGICAL ENVIROMENT Technology plays a very important role in bank’s internal control mechanisms as well as services offered by them. The bankers also have to provide these customers with special provisions and at times with benefits like food and parties. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and service. professionals. consumer loans. bankers were given direction to help economically weaker section of the society and also provide needbased finance to all the sectors of the economy with flexible and liberal attitude.
HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. currency accounting machines makes the job easier and self-service counters are now encouraged. This is one of the main reasons of India’s growth process. The messages are then recognized by the bank to provide you with the required information. Today MasterCard and Visa card are the two most popular cards used world over. The most striking is its extensive reach. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the balance inquiry. Automatic voice recorders now answer simple queries. For the past three decades India's banking system has several outstanding achievements to its credit. For example SMS functions through simple text messages sent from your mobile. The use of ATM and Internet banking has allowed ‘anytime. get the statement of accounts. Indian banking system has reached even to the remote corners of the country. Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. In fact. The banks have now started issuing smartcards or debit cards to be used for making payments. anywhere banking’ facilities. give instructions for fund transfers. It is no longer confined to only metropolitans or cosmopolitans in India. These are also called as electronic purse. Credit card facility has encouraged an era of cashless society.The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. etc. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of loosing the post.  .
Not long ago.  . The East India Company established Bank of Bengal (1809). Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. Reserve Bank of India came in 1935. Next came Bank of Hindustan and Bengal Bank. Phase II and Phase III. PhaseI The General Bank of India was set up in the year 1786. To make this write-up more explanatory. Bank of Baroda. he has a choice. Central Bank of India. an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. They are as mentioned below: • • • Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking sector reforms after 1991. Indian Bank. we prefix the scenario as Phase I. Today. mostly European shareholders. the journey of Indian Banking System can be segregated into three distinct phases. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. was set up in 1894 with headquarters at Lahore. Exclusively by Indians Punjab National Bank Ltd. and Bank of Mysore were set up. Canara Bank. Money has become the order of the day.The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Gone are days when the most efficient bank transferred money from one branch to other in two days. Between 1906 and 1913. Bank of India. From 1786 till today. Now it is simple as instant messaging or dials a pizza.
PhaseII Government took major steps in this Indian Banking Sector Reform after independence. funds were largely given to traders. 23 of 1965). Moreover. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. To streamline the functioning and activities of commercial banks. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:  . Mrs. 1969. mostly small. Indira Gandhi. it nationalised Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July. It was the effort of the then Prime Minister of India. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. As an aftermath deposit mobilisation was slow. In 1955. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. This step brought 80% of the banking segment in India under Government ownership. During those day’s public has lesser confidence in the banks. 14 major commercial banks in the country were nationalised.During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. major process of nationalisation was carried out. the Government of India came up with The Banking Companies Act. There were approximately 1100 banks. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country.
After the nationalization of banks. The entire system became more convenient and swift. 1969: Nationalisation of 14 major banks.• • • • • • • • 1949: Enactment of Banking Regulation Act. Efforts are being put to give a satisfactory service to customers. In 1991. 1971: Creation of credit guarantee corporation. 1961: Insurance cover extended to deposits.  . It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. the foreign reserves are high. Phone banking and net banking is introduced. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of institutions. PhaseIII This phase has introduced many more products and facilities in the banking sector in its reforms measure. the capital account is not yet fully convertible. under the chairmanship of M Narasimham. and banks and their customers have limited foreign exchange exposure.000%. 1975: Creation of regional rural banks. The financial system of India has shown a great deal of resilience. 1980: Nationalisation of seven banks with deposits over 200 crore. the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11. 1955: Nationalisation of State Bank of India. a committee was set up by his name which worked for the liberisation of banking practices. This is all due to a flexible exchange rate regime. Time is given more importance than money. 1959: Nationalisation of SBI subsidiaries.
000 branches and it offers -. approximately 80% of the banking segments in India were under government ownership. only State Bank of India (SBI) was nationalized. Till this year.a wide range of banking services. • • • • • • • Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank • • • • • • • Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India Before the steps of nationalization of Indian banks. Seven more banks were nationalised with deposits over 200 crores. 1960. These banks were mostly owned by businessmen and even managed by them. Nationalization of Seven State Banks of India (formed subsidiary) took place on 19th July. It serves 90 million customers through a network of 9. It took place in July 1955 under the SBI Act of 1955.either directly or through subsidiaries -. It nationalized 14 banks then.  . After the nationalisation of banks in India. the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11. The second phase of nationalisation of Indian banks took place in the year 1980. The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. Indira Gandhi the then prime minister.000%.NATIONALIZATION OF BANKS IN INDIA The nationalization of banks in India took place in 1969 by Mrs.
which has Reserve Bank of India as its regulatory authority. The banks that are included under this schedule are those that satisfy the criteria laid down vide section 42 (60 of the Act). PUBLIC SECTOR BANKS  . and foreign banks. private sector. The private sector banks are again split into old banks and new banks.BANKING STRUCTURE The Indian banking industry. 1934. is a mix of the public sector. Some co-operative banks come under the category of scheduled commercial banks though not all co-operative banks. SCHEDULED BANKS Scheduled commercial banks are those that come under the purview of the Second Schedule of Reserve Bank of India (RBI) Act.
Bank of Maharashtra. and regional operations. The Nedungadi Bank Ltd. Over 70% of the aggregate branches in India are those of the public sector banks. Lord Krishna Bank Ltd. Bank of Rajasthan. Bharat Overseas Bank Ltd. other nationalized banks. The old private sector banks comprise those. The Jammu & Kashmir Bank Ltd. These banks are gearing up  .Public sector banks are those in which the Government of India or the RBI is a majority shareholder. Financial institutions promoted several of these banks. Central Bank of India. The Federal Bank Ltd. these banks were not nationalized. The Karur Vysya Bank Ltd. State Bank of Travancore. Union Bank of India. The new private sector banks were established when the Banking Regulation Act was amended in 1993... and Regional Rural Banks (RRBs). State Bank of Patiala. Some of the leading banks in this segment include Allahabad Bank. Bank of India. State Bank of Bikaner and Jaipur. UCO Bank. which were operating before Banking Nationalization Act was passed in 1969. On account of their small size.. These banks include the State Bank of India (SBI) and its subsidiaries. the RBI has granted no more licenses. Dena Bank and Corporation Bank... These banks face intense rivalry from the new private banks and the foreign banks. Canara Bank. and Vysya Bank. The Catholic Syrian Bank Ltd... State Bank of India.. Karnataka Bank Ltd. Indian Overseas Bank. Bank of Baroda. (now a part of ICICI Bank). The Dhanalakshmi Bank Ltd. Oriental Bank of Commerce. The Lakshmi Vilas Bank Ltd.. PRIVATE SECTOR BANKS Private Banks are essentially comprised of two types: the old and the new. The banks that are included in this segment include: Bank of Madura Ltd. After the initial licenses.
 . are mainly confined to metropolitan areas.. these banks are on an expansion spree. Centurion Bank Ltd. Some of the leading foreign banks that operate in India are Citibank. Deutsche Bank.. IndusInd Bank Ltd. are looking to expand and diversify. Bank of America. in the wake of the liberalization era. FOREIGN BANKS The operations of foreign banks. though similar to that of other commercial Indian banks.. Global Trust Bank Ltd. The leading banks that are included in this segment include Bank of Punjab Ltd. An inter-departmental committee has been set up to endorse applications for entry and expansion. ICICI Banking Corporation Ltd.to face the foreign banks by focusing on service and technology. and UTI Bank Ltd. economic and political bilateral relations. Foray of foreign banks depends on reciprocity. spreading into semi-urban areas and satellite towns. Development Bank of Singapore and Banque National De Paris. Standard Chartered Grindlays Bank. Currently. HDFC Bank Ltd. IDBI Bank Ltd. Foreign banks. Hong Kong Shanghai Banking Corporation....
the increasing levels of deregulation along with the increasing levels of competition have facilitated globalisation of the India banking system and placed numerous demands on banks. The last decade has witnessed major changes in the financial sector . it has entailed greater competition and consequently greater risks. In India. has required banks to diversify their product mix and also effect rapid changes in their processes and operations in order to remain competitive in the globalised environment. along with all this. particularly derivatives. and technological framework on par with international best practices enables strengthening of the domestic banking system.  .INDIAN BANKS AND THE GLOBAL CHALLENGES The enhanced role of the banking sector in the Indian economy. inter-alia. new instruments. new challenges. supervisory. new windows. Globalisation has thrown up lot of opportunities but accompanied by concomitant risks. and new opportunities . regulatory. While deregulation has opened up new vistas for banks to augment revenues. Adoption of appropriate prudential. Globalisation of domestic banks has also been facilitated by tremendous advancement in information and communications technology. Operating in this demanding environment has exposed banks to various challenges.and. GLOBALISATION – A CHALLENGE AS WELL AS AN OPPORTUNITY The benefits of globalisation have been well documented and are being increasingly recognised. on the soundness of the financial system and the strength of the individual participants. which would help in fortifying it against the risks that might arise out of globalisation. Demand for new products. There is a growing realisation that the ability of countries to conduct business across national borders and the ability to cope with the possible downside risks would depend. new financial institutions.new banks.
viz. and application of advanced technology. Basel II implementation has another dimension which offers considerable opportunities to banks.strengthening of the banking sector for facing the pressures that may arise out of globalisation by adopting the banking sector reforms in a calibrated manner. viz.Highlighting two opportunities that are offered to banks. and improvement in capital efficiency. improvement of risk management systems. implementation of new accounting standards. GLOBAL CHALLENGES IN BANKING Few broad challenges faced by the Indian banks in the following areas. BASE II IMPLEMENTATION Basel II implementation is widely acknowledged as a significant challenge faced by both banks and the regulators internationally.. refinement of risk management systems. If we were to identify a few global challenges which banks face today. It is true that Basel II implementation may be seen as a compliance challenge. I propose to cover these aspects now. While it may be so for some banks. I am sure we would cover some common ground. implementation of Basel II. outsourcing risks.. which followed the twin governing principles of non-disruptive progress and consultative process.  . enhancing corporate governance. application of technology. enhancement of transparency & disclosures. enhancement of customer service. An overview of the global challenges would include the following: Basel II implementation. and compliance with KYC aspects. alignment of regulatory and accounting requirements.
Comprehensive risk management: Under Basel I banks were focused on credit and market risks. Capital efficiency: Basel II prescriptions have ushered in a transition from the traditional regulatory measure of capital adequacy to an evaluation of whether a bank has found the most efficient use of its capital to support its business i. therefore. In this transition. Enterprises worldwide are. banks may adopt a more dynamic approach to use of capital. In effect. Banks would. banks were managing each risk in isolation. It is no longer adequate to manage each risk independently. Further. is being increasingly seen as a medium through which banks constantly endeavour to upgrade the risk management systems to address the changing environment. therefore. now putting in place an integrated framework for risk management which is proactive. systematic and spans across the entire organisation. banks are now beginning to focus on their inter-linkages with a view to achieve a more comprehensive risk management framework. While the first milestone would be risk integration across the entity. therefore. banks  . Besides the increase in the number of risks. Basel II has brought into focus a larger number of risks requiring banks to focus on a larger canvas. Basel II implementation..e. in which capital will flow quickly to its most efficient use. a transition from capital adequacy to capital efficiency. This revised efficiency approach is expected to guide the return-on-equity strategy and influence banks’ business plans. in the initial stages. Banks in India are also moving from the individual silo system to an enterprise wide risk management system. banks are also aware of the desirability of risk aggregation across the group both in the specific risk areas as also across the risks. With the extension of capital charge for market risks to the AFS portfolio this year and the coming into force of Basel II norms in March 2007. be required to allocate significant resources towards this endeavour. how effectively capital is used will determine return on equity and a consequent enhancement of shareholder value.
To a large extent. but is also a critical ingredient at the system level. ENHANCING CORPORATE GOVERNANCE The issues related to corporate governance have continued to attract considerable national and international attention in light of a number of highprofile breakdowns in corporate governance. This becomes all the more relevant for banks since they not only accept and deploy large amount of uncollateralized public funds in fiduciary capacity.would need to shore up the capital levels not only for complying with these requirements but also for supporting the balance sheet growth. In view of the above. many risk management failures reflect a breakdown in corporate governance which arise due to poor management of conflicts of interest. legal prescriptions for ownership and governance of banks in Banking Regulation Act. inadequate understanding of key banking risks. the Reserve Bank has recently permitted banks to issue new capital instruments. including perpetual instruments. sound corporate governance is not only relevant at the level of the individual bank. and poor Board oversight of the  . Effective risk management systems determine the health of the financial system and its ability to survive economic shocks. Banks are also important participants in the payment and settlement systems. but also leverage such funds through credit creation. 1949 have been supplemented by regulatory prescriptions issued by RBI from time to time. A notable feature of these instruments is that these are designed to help banks in not only managing their capital effectively but also efficiently. With a view to enhancing the options available to banks for augmenting their capital levels. In view of the importance of the banking system for financial stability.
the foundation for effective risk managements in banks and thus the foundation for a sound financial system2. banks may have to cultivate a good governance culture building in appropriate checks and balances in their operations. Although some ownership structures might have the potential to alter the strategies and objectives of a bank. Corporate governance is. (3) direct line supervision of different business areas. There are four important forms of oversight that should be included in the organisational structure of any bank in order to ensure appropriate checks and balances: (1) oversight by the board of directors or supervisory board. and (4) independent risk management. rules may not be able to capture its essence effectively. therefore. these banks will also face many of the same risks associated with weak corporate governance. (2) oversight by individuals not involved in the day-to-day running of the various business areas. These systems can affect how the institution functions and how others perceive it in the marketplace. In addition. Therefore. compliance and audit functions. A good “governance culture” is crucial for financial stability but since it is an ‘intangible’. COMPLIANCE WITH INTERNATIONAL ACCOUNTING STANDARDS  . it is important that key personnel are fit and proper for their jobs. the choices which banks make when they establish their risk management and corporate governance systems have important ramifications for financial stability. Therefore.mechanisms for risk management and internal audit.
It is widely accepted that as the volume of transactions increases. the need to upgrade the accounting framework needs no emphasis. The World Bank’s ROSC on Accounting and Auditing in India has commented on the absence of an accounting standard which deals with recognition. is to ensure that accounting standards and prudential frameworks are mutually consistent. the absence of clear accounting guidelines in this area is matter of significant concern. which is happening in the Indian banking system. While the risk management framework for derivative trading. Derivative activity in banks in India has been increasing at a brisk pace. it is essential for the regulators to be in a position to address any implications that the changes in accounting standards may have for the safety and soundness of banks. therefore. While the former is oriented towards capturing the historical position. While working towards achieving this consistency between the two sets of standards. the latter has a forward looking element particularly with reference to measurement of impairment and capital. which is a relatively new area for Indian banks (particularly more in respect of structured products). is an essential pre-requisite. An important challenge. presentation and disclosures pertaining to financial instruments. Accounting standards are now a part of the set of twelve standards that have been identified by the Financial Stability Forum as conducive to a robust financial infrastructure. The Accounting Standards Board of the Institute of Chartered Accountants of India (ICAI) is considering issue of Accounting Standards on the above aspects pertaining to financial Instruments. Financial reporting and prudential supervision have slightly different perspectives. measurement. These will be the Indian parallel to International  .One of the prime international standards considered relevant for ensuring a safe and sound banking system is the ‘Core Principles for Effective Banking Supervision’ issued by the Basel Committee on Banking Supervision (BCBS).
to perform activities on a continuing basis that would normally be undertaken by the bank itself. Typically outsourced financial services include applications processing (loan origination. concentration risk and systemic risk. Since this is likely to give rise to some regulatory / prudential issues all relevant aspects are being comprehensively examined. reputation risk.Financial Reporting Standard 7. data processing and back office related activities etc. The proposals in this regard would. operational risk. investment management. International Accounting Standards 32 and 39. credit card). ensure  . country risk. In the meanwhile. compliance risk. document processing. marketing and research. OUTSOURCING RISKS Banks are increasingly using outsourcing for achieving strategic aims leading to either rationalisation of operational costs or tapping specialist expertise which is not available internally. including an affiliated entity within a corporate group. The formal introduction of these Accounting Standards by the ICAI is likely to take some time in view of the processes involved. 'Outsourcing' may be defined as a bank's use of a third party. access risk. Outsourcing might give rise to several risks including. strategic risk. exit strategy risk. Adoption and implementation of these principles are likely to pose a great challenge to both the banks and the Reserve Bank. The proposed Accounting Standards will be of considerable significance for financial entities and could therefore have implications for the financial sector. the Reserve Bank is considering the need for banks and financial entities adopting the broad underlying principles of IAS 39. The failure of a service provider to provide a specified service. supervision of loans. counterparty risk. be discussed with the market participants before introduction. as is normal.
banks are not expected to outsource any activity that would result in their internal control. Outsourcing banks. business conduct. Adoption of technology also enhances the quality of risk management systems in banks. It would therefore be imperative for the bank outsourcing its activities to ensure effective management of these risks. It is in this background that RBI has issued draft guidelines on outsourcing. or reputation being compromised or weakened. which is intended to provide direction and guidance to banks to effectively manage risks arising from such outsourcing activities.security/ confidentiality. The beneficiaries are those banks which have invested in technology. The underlying principles for any outsourcing arrangement by a bank are that such arrangements should neither diminish the bank’s ability to fulfill its obligations to its customers and the RBI nor impede effective supervision by RBI. and comply with legal and regulatory requirements can lead to financial losses/ reputational risk for the bank and could also lead to systemic risks for the entire banking system in a country. should take steps to ensure that the service provider employs the same high standard of care in performing the services as would be employed by the banks if the activities were conducted within the banks and not outsourced. Banks which have made inadequate investment in technology have consequently faced an erosion of their market shares. APPLICATION OF ADVANCED TECHNOLOGY Technology is a key driver in the banking industry. Recognising the benefits of modernising their technology infrastructure banks are taking the  . therefore. Accordingly. which creates new business models and processes. and also revolutionises distribution channels.
CAPACITY BUILDING As dictated by the changing environment. and give them a competitive advantage6. Skill requirements would be significantly higher for banks planning to migrate to the advanced approaches under Basel II. A relevant point in this regard is that capacity building should be across the institution and not confined to any particular level or any particular area. While doing so. In this context banks need to clearly define their core competencies to be sure that they are investing in areas that will distinguish them from other market players. banks need to focus on appropriate capacity building measures to equip their staff to handle advanced risk management systems and supervisors also need to equally equip themselves with appropriate skills to have effective supervision of banks adopting those systems. or buy best of the modules. Capacity building gains greater relevance in these banks. or outsource. or buy a comprehensive solution. The demand for better skills can be met either from within or from outside.right initiatives. It would perhaps be worthwhile to first glean through the existing resources to  . banks need to focus on motivating their skilled staff and retaining them7. In the likelihood of a high level of attrition in the system. banks have four options to choose from: they can build a new system themselves. so as to equip themselves to take advantage of the incentives offered under the advanced approaches. A further challenge which banks face in this regard is to ensure that they derive maximum advantage from their investments in technology and avoid wasteful expenditure which might arise on account of uncoordinated and piecemeal adoption of technology. adoption of inappropriate/ inconsistent technology and adoption of obsolete technology.
Further. These aspects are also highly relevant for banks which are part of a globalised banking system. but is only intended to prioritise the process. overcoming these challenges by the other banks is expected to not only stand them in good stead during difficult times but also augurs well for the banking system to which they belong and will also equip them to launch themselves as a global bank. CONCLUSION The global challenges which banks face are not confined only to the global banks. This does not undermine the benefits that a bank may derive by meeting their requirements from the market.  .identify misplaced or hidden or forgotten resources and re-position them to boost the bank’s efforts to capitalise on available skills.
TRANSFORMATION INITIATIVES NEEDED FOR BANKS Strategy Sales & Marketing strategy for both retail & wholesale banking Expanding geographies Brand Understanding the values of the brand Repositioning the brand to communicate the values  .
Organization restructuring Re organization of the bank in line with the strategic thrust Re engineering of the key business processes Redesign of Sales processes to increase conversion ratio Six Sigma process improvements for branch channel, Call Center & back office processes Centralization of branch operations and deferred processes to free up resources Cost efficiency Reduction in Total cost of acquisition Reduction in transaction costs Reduction in fixed and overheads cost Right sizing and matching of skills Manpower modelling for branch & back office at various volume scenarios Productivity improvement for sales & service functions Competency Assessments & profiling Creating a high performing organization Define new roles & responsibilities, KRA
Assessing competencies of people across levels and match the position with the skill-set Designing and implementing a new PMS for restructured organization Change management & creating a new mind set Developing critical mass of champions and drive ‘Change’ across the organisation to move from conventional banking to new age banking.
BANKING SERVICES IN INDIA
With years, banks are also adding services to their customers. The Indian banking industry is passing through a phase of customers market. The customers have more choices in choosing their banks. A competition has been established within the banks operating in India.
With stiff competition and advancement of technology, the services provided by banks have become more easy and convenient. The past days are witness to an hour wait before withdrawing cash from accounts or a cheque from north of the country being cleared in one month in the south. The following are the major services provided by the Banks.
Open bank account the most common and first service of
the banking sector. There are different types of bank account in Indian banking sector. The bank accounts are as follows:
Bank Savings Account - Bank Savings Account can be opened for eligible person / persons and certain organisations / agencies (as advised by Reserve Bank of India (RBI) from time to time)
Bank Current Account - Bank Current Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs / Specified Associates / Societies / Trusts, etc.
Bank Term Deposits Account - Bank Term Deposits Account can be opened by individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified Associates / Societies / Trusts, etc.
Bank Account Online - With the advancement of technology, the major banks in the public and private sector has facilitated their customer to open bank account online. Bank account online is registered through a PC with an internet connection. The advent in opening an account.
Credit card Credit cards in India are gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.
A VISA cardholder borrows money against a credit line and repays the money with interest if the balance is carried over from month to month in a revolving line of credit. VISA Card VISA cards is a product of VISA USA and along with MasterCard is distributed by financial institutions around the world.2 million locations.Major Banks issuing Credit Card in India • • • State Bank of India credit card (SBI credit card) Bank of Baroda credit card or Bob credit card ICICI credit card • • • • • HDFC credit card IDBI credit card ABN AMRO credit card Standard Chartered credit card HSBC credit card Global player in credit card market MasterCard MasterCard is a product of MasterCard International and along with VISA are distributed by financial institutions around the world. whose users spent $650 billion in more than 16. AmericanExpress  . it had almost 700 million cards in circulation. Cardholders borrow money against a line of credit and pay it back with interest if the balance is carried over from month to month. In 1998. Nearly 600 million cards carry one of the VISA brands and more than 14 million locations in the world. Its products are issued by 23.000 financial institutions in 220 countries and territories.
JCBCards The JCB Card has a merchant network of 10. The JCB philosophy of "identify the customer's needs and please the customer with Service from the Heart" is paying rich dividends as their customers spend US$43 billion annually on their JCB cards. DinersClubInternational Diners Club is the world's No. the total amount spent on American Express cards rose by 4 percent. Canada. American Express cards are very popular in the U. It is supported by over 320 financial institutions worldwide and serves more than 48 million cardholders in eighteen countries world wide.Taj Premium  • • • • Bol . They are affluent and are frequent travelers in premier businesses and institutions. Around US $ 123 billion was spent last year through American Express Cards and it is poised to be the world's No.Gold ANZ .Gold BoB .Indiacard Bol . Europe and Asia and are used widely in the retail and everyday expenses segment.Cancard . including Fortune 500 companies and leading global corporations. Diners Club cardholders reside all over the world and the Diners Card is a all-time favourite for corporates. More than 57 million cards are in circulation and growing and it is still growing further. 1 card in the near future.93 million in approximately 189 countries. The following are some of the varieties of credit cards in India • • • • ANZ .Exclusive BoB . There are more than 8 million Diners Club cardholders.Silver Bank Of India .S. In a regressive US economy last year.. 1 Charge Card.Premium Canara Bank .The world's favorite card is American Express Credit Card.
Debit cards are different from credit cards. Its an alternative to carrying a checkbook or cash.Silver Citibank WWF Card Citibank Visa Card for Women • • • HSBC ." whereas debit card is a way to "pay now. we use our own money and not the issuer's money.Classic • • Citibank Cry Card Citibank International Credit Silver • • Citibank Electronic Credit Card Citibank Times Card Citibank Citi Diners Club Card • • • • • • Debit Card Debit cards. In India almost all the banks issue debit card to its account holders. It operate like cash or a personal check.  . With debit card." When we use a debit card. our money is quickly deducted from the bank account.Gold HSBC . gasoline stations. and restaurants. Credit card is a way to "pay later.Gold Stanchart . including grocery stores.Executive Stanchart .Classic ICICI Sterling Silver Credit Card • ICICI Solid Gold Credit Card ICICI True Blue Credit Card SBI Card Stanchart . also known as check cards look like credit cards or ATM cards (automated teller machine card).• • • • Citibank . retail stores.Gold Citibank . Debit cards are accepted at many locations.
LOANS Banks in India with the way of development have become easy to apply in loan market. • • • The debit card is a quick. • • • Using a debit card frees you from carrying cash or a checkbook.Features of Debit Card • Obtaining a debit card is often easier than obtaining a credit card. • Returning goods or canceling services purchased with a debit card is treated as if the purchase were made with cash or a check. giving you no grace period. Using a debit card instead of writing checks saves you from showing identification or giving out personal information at the time of the transaction. Using a debit card means you no longer have to stock up on traveler's checks or cash when you travel. The following loans are given by almost all the banks in the country: • • Personal Loan Car Loan or Auto Loan  . Debit cards may be more readily accepted by merchants than checks. are defective. You should contact the card issuer if a problem cannot be resolved with the merchant. you may dispute unauthorized charges or other mistakes within 60 days. "pay now" product. But. as with credit cards. especially in other states or countries wherever your card brand is accepted. Using a debit card may mean you have less protection than with a credit card purchase for items which are never delivered. or were misrepresented.
Loan against shares is very easy to get because liquid guarantee is involved in it. HSBC are some of the leading banks which deals in in personal loan. SBI. Almost all banks are dealing in home loan. Again SBI .000 to 10. studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment. It is one of the fast moving financial products of banks. is a good banking product for the mass.  . The RBI has also liberalised the interest rates of home loan in order to match the repayment capability of even middle class people. HSBC are leading. The educational loan. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee. ICICI . one can get a sanctioned loan amount between Rs 25. HDFC. Home loan is the latest craze in the banking sector with the development of the infrastructure. ICICI. rather to be termed as student loan.• • • Loan against Shares Home Loan Education Loan or Student Loan In Personal Loan.000 depending upon the profile of person applying for the loan. Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. HDFC . More number of townships are coming up to meet the demand of 'house for all'. Now people are moving to township outside the city. Students with certain academic brilliance.00.
Remittees who are highly educated and have been already been exposed to ATM technology in receiving countries tend to have an interest in this product. from US$213 bn. to US$233 bn. This service provide peace of mind to either the NRIs or to the visitors to India. ATM money transfer card products have had terrible bank adoption rates since being introduced in the last three to four years. Banks generally issue Demand Drafts. This is a type of Telegraphic Transfer or Tele Cash Orders. Economists say that the market of money transfer will further grow at cumulative 10. This activity is termed as remittance business. It has been only a couple of years that banks have jumped into the money transfer businessess in India.e. The price evolution of money transfer products for banks will be similar to that of consumer bill pay-the product is worth giving away as an account acquisition tool to win overall market share and establish banking relationships. With the use of high technology and varieties of product it seems that "Free" money transfers will become commonplace. Banker's Cheques. Money transfer to India is one of the most important part played by the banks. The international money transfer market grew 9. This act of banks is known as transfer of money. We will see more bundling of tailored money services by banks and non-traditional entrants that will include "free" money transfers. Money Orders or other such instruments for transferring the money. in 2004.3% from 2003 to 2004 i. banks also carry money from one corner of the globe to another.MONEY TRANSFER Beside lending and depositing money. Many banks will even use money transfer services as loss-leaders inorder to generate account openings and cross-sell opportunities. Many  .1% average growth rate through 2008.
either debit or credit within India. By 2007. quick. • Click on to VISA Transfer Payments button. and cost-effective.  . we will see a good percent of all foreign-born households doing some level of online banking.Indian banks have ATM'S (automatic teller machine). to the thirdparty fund transfer option given by some banks to its account holders through e-cheque. Visa has recently introduced the 'Visa Money Transfer' option for its savings and current account holder of any bank with a visa debit card. in many respects. First-mover banks will start having a window of opportunity to include online transfer functionality within the next couple of years. For bank account specify the visa card number and credit card number for paying credit card bill. A Visa Money Transfer is of similar kind. How to transfer money? • • Log on to your bank account through your respective bank websites. There is a terrific opportunity for banks and non-banks to offer more robust global inter-institutional funds transfer services online. Fill the beneficiary details like visa card numbers. but this is restricted to only visa card holders. That will change as banks offer transfer services through their online channel. name. which currently frequents traditional money transmitters such as Western Union. This facility helps its customer to transfer funds from his bank account to any visa card. enable to draw foreign currency in India. address and then specify the amount that needs to be transferred. and most do not have an alternative product marketed by their bank that is painless. More than half of Western Union's customers today are already banked.
Mobile Banking works on the 'Text Messaging Facility' also called the SMS that is available on mobile phones. MOBILE BANKING Mobile Banking is a service that allows customers to do banking transactions on their mobile phone without making a call .• Transfer immediately or on schedule date. The following transactions are currently available across India • • • • • • • • • • Balance Inquiry of all accounts linked to Customer Identification Number (maximun up to five accounts) Following transactions give information on primary account Checking the last 3 transactions in your primary account for MobileBanking Placing a Stop Payment on a cheque Requesting a cheque book Requesting an Account Statement Cheque Status inquiry Bill Presentment Fixed Deposit Inquiry A Help menu. All that is need to do is. which gives you the transaction codes for the various transactions  .The response is sent as an SMS message. Your account will be debited according to the date mentioned. This facility allows sending a short text message from mobile phone instead of making a phone call. to type out a short text message on mobile phone and send it out to a specific mobile banking number given by the bank . all in the matter of a few seconds. using the SMS facility.
15 21.70 39. a voice prompt will guide him through the various transactions. 2009. He may also talk to a Phone Banker. 28 million and status of cheques with 21 million users.11 Mobile banking is popular among the Rs. Usage Used mobile banking Checking account balance View last three transactions Status of cheques Payment reminders Request a cheque book Unique Users (In millions) 43. who will provide him with the required assistance. • Check your account balance  .92 19.97 28.1 to 5 lakhs per year income group with almost 60% of mobile banking users falling in the income bracket. a reach of 15% among urban Indian mobile phone user. PHONE BANKING When one dials in to Phone Banking. Most Popular Banking Service on Mobile Checking account balances is the most popular banking service used by urban Indians with almost 40 million users followed by checking last three transactions.• IPIN Re-generation request Mobile banking in India is set to explode . an indicator of adoption of this service by younger generation.approximately 43 million urban Indians used their mobile phones to access banking services during quarter ending August.06 20.
• • • • • • Enquire on the cheque status Order a Cheque Book / Account Statement Stop Payment Loan Related queries transfer Funds between accounts Open a Fixed deposit or Enquire on your Fixed deposits / Pay bills Report loss of ATM / Debit Card / ForexPlus Card Enquire about latest Interest / Exchange rates Request a Demand Draft / Manager's Cheque Demat Related Queries TDS • • • • • INTERNET BANKING Internet banking is the technology that allows banking customers to do the things they would normally do at their bank from the comfort of home with a connection to the Internet. With cybercafes and kiosks springing up in different cities access to the Net is going to be easy. Banking is now no longer confined to the  . Internet banking (also referred as e banking) is the latest in this series of technological wonders in the recent past involving use of Internet for delivery of banking products & services. is considered Internet banking. Internet banking is changing the banking industry and is having the major effects on banking relationships. Even the Morgan Stanley Dean Witter Internet research emphasised that Web is more important for retail financial services than for many other industries. Anything that would normally be done in the offshore bank account. which is done on the Internet.
Foreign & Private banks are much advanced in terms of the number of sites & their level of development. these Internet sites offer only the most basic services. now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services. Only 8% offer 'advanced transactions' such as online funds transfer. offering little more than company information and basic marketing materials. transactions and cash management services. Indian banks are going for the retail banking in a big way. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service.branches were one has to approach the branch in person. any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. stage of development (only 50 banks are offering varied kind of Internet In general. The net banking. This study which was conducted by students of IIML shows some interesting facts: • Throughout the country. much is still to be achieved. to withdraw cash or deposit a cheque or request a statement of accounts. However. 55% are so called 'entry level' sites. Following services can be availed on the internet: • Bill Payment  • Funds Transfer . In true Internet banking. thus. the Internet Banking is in the nascent banking services).
• • • • • • Special Promotions & Offers Ticket Booking Online loans and credit cards Online Shopping Online Tax payment Prepaid recharge mobile  .
Chapter 4 Bank Profile .
South Africa. Malaysia and Indonesia. The Bank currently has subsidiaries in the United Kingdom.19 billion (US$ 648.883 ATMs in India and presence in 18 countries. Bangladesh.562. Russia and Canada. branches in United States.8 million) for the nine months ended December 31. life and non-life insurance. venture capital and asset management. The Bank has a network of 1.28 billion (US$ 77 billion) at December 31. . Sri Lanka. 2009 and profit after tax Rs. 30. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. 3. China. Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates.654 branches and about 4. Bahrain. Singapore.ICICI BANK ICICI Bank is India's second-largest bank with total assets of Rs. 2009. Hong Kong. Our UK subsidiary has established branches in Belgium and Germany. Thailand.
Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates. Sri Lanka. The Bank currently has subsidiaries in the United Kingdom. venture capital and asset management. Russia and Canada. Malaysia and Indonesia. .19 billion (US$ 648. 30. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. Singapore. 2009 and profit after tax Rs. 3.28 billion (US$ 77 billion) at December 31. branches in United States. Bahrain. Bangladesh. China. life and non-life insurance.645 branches and about 4.Corporate Profile ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). UK subsidiary has established branches in Belgium and Germany. The Bank has a network of 1.562. 2009. ICICI Bank is India's second-largest bank with total assets of Rs.8 million) for the nine months ended December 31. Thailand.883 ATMs in India and presence in 18 countries. South Africa. Hong Kong.
Personal banking Services .
bill payment and prepaid mobile recharge Continually updated services .000 per day for funds transfer to any account. anywhere Convenient menu based features designed for easy access Enjoy financial transactions worth Rs 50.Mobile Banking Services offered by ICICI Bank Bank Account Funds Transfer* Bill Payment+ Balance Enquiry Last 5 Transactions Cheque Book Request Stop Cheque Request Cheque Status Enquiry Credit Card Balance Details Last Payment Details Payment Due Date Reward Point Status Demat Holding Enquiry Transaction Status Bill Enquiry ISIN Enquiry Loan Provisional Income Tax Certificate Final Income Tax Certificate Reset Letter Rescheduled Letter Loan Agreement Copy Other Services Locate Branch Locate ATM Phone Banking Number Prepaid Mobile Recharge* Apply for Bank Products Status of Service Request Raised IMOBILE Benefits of using iMobile: Secure access to your bank accounts anytime.
you can avail of our TV Banking from anywhere in India Benefits It doesn’t require an Internet connection . Quite certainly. TV Banking has revolutionized banking by bringing it right into your living room. we've introduced India to an all new way of banking. and lots more.If your TV service is coming to you through Satellite DTH or Digital Cable. deposits and a lot more while you're watching that exciting cricket match or your favorite sitcom. accounts and deposits to additional services like financial counselling. cheque status and balance enquiry. Multiple service options with minimal effort Services available with iMobile: Payment of utility bills and credit card bills Transfer of funds to any bank account Payment of insurance premium Placement of service request such us ordering of cheque books. Tv banking at icici bank At ICICI Bank. interactive features like calculators for loans and premiums. This pioneering initiative now enables you to get information regarding loans. accounts. You can get details and information regarding all our services – everything from loans. TV Banking. bank account statements.
HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. Its outstanding loan portfolio covers well over a million dwelling units. the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. HDFC has developed . as part of the RBI's liberalisation of the Indian Banking Industry in 1994.It's available 24x7 Zero charges You can obtain all the information you need about the available banking products and services on the TV screen itself HDFC BANK The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'. India. Promoter HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. with its registered office in Mumbai. Since its inception in 1977.
Capital Structure As on 31st December.46 % of the equity is held by Foreign Institutional Investors (FIIs) and the Bank has about 4. The Bank's American Depository Shares (ADS) are listed on the New York Stock Exchange (NYSE) under the .52.87 % of the Bank's equity and about 16.65. professional integrity.683 shareholders.36.94 % of the equity is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue). HDFC Bank's business philosophy is based on four core values . 550 crore. The paid-up capital as on said date is Rs. With its experience in the financial markets. Product Leadership and People. a strong market reputation. 455. and to achieve healthy growth in profitability. The bank is committed to maintain the highest level of ethical standards. HDFC was ideally positioned to promote a bank in the Indian environment. 27.58. 2009 the authorized share capital of the Bank is Rs. consistent with the bank's risk appetite. The HDFC Group holds 23. corporate governance and regulatory compliance.564 equity shares of Rs.each).Operational Excellence. Business focus HDFC Bank's mission is to be a World-Class Indian Bank.significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. Customer Focus. The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange of India Limited.23. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments. 10/. large shareholder base and unique consumer franchise.640/(45.
1.000 crore.000 crore. As per the scheme of amalgamation. HDFC TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems.symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange under ISIN No US40415F2002. In each of its businesses. and a bigger pool of skilled manpower. The merged entity will have a strong deposit base of around Rs. 89. The Bank has made substantial efforts and investments in acquiring the best technology available internationally. The balance sheet size of the combined entity would be over Rs.22. shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. effective February 26. to build the infrastructure for a world class bank.75 shares of Times Bank. The Bank's business is supported by scalable and robust systems which ensure that our clients always get the finest services we offer. shareholders of Times Bank received 1 share of HDFC Bank for every 5. 2000. geographic reach. 1. The Bank has prioritised its engagement in technology and the internet as one of its key goals and has already made significant progress in webenabling its core businesses. This was the first merger of two private banks in the New Generation Private Sector Banks. 2008. / Times Group) was merged with HDFC Bank Ltd.63. The amalgamation added significant value to HDFC Bank in terms of increased branch network. On May 23. In a milestone transaction in the Indian banking industry. Times Bank Limited (another new private sector bank promoted by Bennett..000 crore and net advances of around Rs. which enables the bank to offer speedy funds transfer facilities to its customers. and customer base. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India. the Bank has . the amalgamation of Centurion Bank of Punjab with HDFC Bank was formally approved by Reserve Bank of India to complete the statutory and regulatory approval process. Coleman & Co. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). All the bank's branches have online connectivity.
has been a professional banker for over 25 years. Capoor was a deputy governor of the reserve bank of india. Aditya Puri. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry. Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. the bank believes that its people are a significant competitive strength. Management Mr. industry and commercial banking. Senior executives representing Hdfc are also on the board. and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia. The Managing Director. The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. expertise and technology to create a competitive advantage and build market share. Mr. Accounts & Deposits Regular Savings Account Savings Plus Account SavingsMax Account Senior Citizens Account No Frills Account InstitutionalSavings Account Payroll Salary Account Classic Salary Account Regular Salary Account Premium Salary Account Many others .succeeded in leveraging its market position. Products and Services at glance Personal banking A. Prior to this. administration.
Forex Services Trade Finance Travelers’ Cheques Foreign Currency Cash Foreign Currency Drafts Foreign Currency Cheque Deposits Foreign Currency Remittances Cash To Master ForexPlus Card E. Loans Personal Loans Home Loans Two Wheeler Loans New Car Loans Used Car Loans Overdraft against Car Express Loans Loan against Securities Loan against Property Commercial Vehicle Finance Working Capital Finance Construction Equipment Finance Offers & Deals CustomerCenter C.B. Investments & Insurance Mutual Funds Insurance Bonds Financial Planning Knowledge Centre Equities & Derivatives Mudra gold bar Prepaid Refill Bill Pay Direct Pay Visa Money Transfer E-Monies Electronic Funds Transfer Excise and Service Tax Payment D. Payment Services Net Safe .
Cards Silver Credit Card Gold Credit Card Woman's Gold Credit Card Platinum plus Credit Card Titanium Credit Card Value plus Credit Card Health plus Credit Card HDFC Bank Idea Silver Card HDFC Bank Idea Gold Card Compare Cards Transfer & Safe TrackyourCreditCard H. Access Your Bank One View Insta Alerts Mobile Banking ATM Phone Banking Branch Network G.F. Get More from Your Card Offers & Savings My Rewards Insta Wonderz Add-On Cards Credit Card Usage Guide Easy EMI Net safe Smart Pay Secure Plus My City Benefit Card .
Debit Cards Easy ShopInternational Debit Card Easy Shop Gold Debit Card Easy ShopInternational Business Debit Card Easy ShopWoman's Advantage Debit Card Prepaid Cards Forex Plus Card Kisan Card State Bank of India .
The Bank is forging ahead with cutting edge technology and innovative new banking models. Advisory Services. The bank is entering into many new businesses with strategic tie ups – Pension Funds. Point of Sale Merchant Acquisition. . market capitalization and profits is today going through a momentous phase of Change and Transformation – the two hundred year old Public sector behemoth is today stirring out of its Public Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money.000 villages in the next two years. the country’s oldest Bank and a premier in terms of balance sheet size. Private Equity. number of branches. Custodial Services. General Insurance. Mobile Banking. The State Bank of India. to expand its Rural Banking base. structured products etc – each one of these initiatives having a huge potential for growth. looking at the vast untapped potential in the hinterland and proposes to cover 100.
mobile banking. today it offers the largest banking network to the Indian customer. on whole sale banking capabilities to provide India’s growing mid / large Corporate with a complete array of products and services. Today. It is consolidating its global treasury operations and entering into structured products and derivative instruments. SBI Factors. The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs. . It is in the process of raising capital for its growth and also consolidating its various holdings. It presently has 82 foreign offices in 32 countries across the globe.forming a formidable group in the Indian Banking scenario. Some of the training programes are attended by bankers from banks in other countries. It is also focusing at the top end of the market. The bank is also looking at opportunities to grow in size in India as well as Internationally. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience. It is the only Indian bank to feature in the Fortune 500 list. SBI Life and SBI Cards . and other electronic channels such as Internet banking. etc With four national level Apex Training Colleges and 54 learning Centres spread all over the country the Bank is continuously engaged in skill enhancement of its employees. the Bank is the largest provider of infrastructure debt and the largest arranger of external commercial borrowings in the country. debit cards. It has also 7 Subsidiaries in India – SBI Capital Markets. SBI DFHI. SBICAP Securities.
the Bank is also attempting to change old mindsets. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme. attitudes and take all employees together on this exciting road to Transformation. to drive home the message of Change and inclusiveness. Throughout all this change. State Bank of India offers a wide range of services in the Personal Banking Segment which are indexed here eZ-trade@sbi SBI FOREIGN VISHWA INWARD REMITTANCE LOCKER YATRA FOREIGN TRAVEL CARD PAY ROLL CARDS ATM SERVICES GIFT CARDS GIFT CHEQUES INTERNET BANKING . In a recently concluded mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300 two day workshops across the country and covered over 130.000 employees in a period of 100 days using about 400 Trainers.
can be loaded on to the card from a single point and the funds are available to the employees immediately. State Bank of India in alliance with SBICap Securities Limitedand Motilal Oswal Securities Limited offers an online trading account which will let you trade from the comfort of your home or office either through the internet. eZ -Pay Card Payment of salaries to employees who will be required to work at different locations is generally a difficult proposition for Employers as a single Banking arrangement can not be made for all employees. The services for other non-Java mobile phonesunder development and will be offered using Unstructured Supplementary Services Data (USSD). Balance enquiry can be made either through ATM or through Internet free of charge. a prepaid plastic card issued in Indian Rupees in association with VISA international. The SBI eZ-Pay card . The cardholder need not visit any Branch to withdraw his money. This service provides you with a 3-in1 account which is an integrated platform of savings bank a/c. The service can be availed over the free GPRS facilities offered by various mobile service providers. The SBI eZ-Pay card is a Pre-paid ATM-cum-Debit card usable at all VISA-enabled ATMs through PIN and at Merchant establishments/ Point of Sale through PIN/ Signature. Periodical payments like salary. demat a/c and an online trading a/c to give you a convenient and paper free trading experience under one roof. Nepal & Bhutan. is the right solution in such cases. The service is presently available on java enabled mobile phones over SMS/ GPRS/ WAP as also non java phones with GPRS connection. secure. . anytime and anywhere banking. State-Of-Art Technology And Operational Ease that will redefine the way india trades. in India.Online Trading SBI’s value proposition is based on Unmatched Expertise. simple. Mobile banking services Away from home. bills can be paid or money sent to the loved ones or balance enquiries done anytime 24x7!!! That is what SBI FreedoM offers -convenience. payment of TA/ Medical/ incentives etc.
It can be used for dining. Sbi Yuva Card SBI Yuva Card is an International Debit Card on VISA platform.e. State Bank of Bikaner & Jaipur. gifts have been given to employees in the form of cash or kind. using the State Bank ATM-cum-Debit (Cash Plus) card. This card is PIN based on ATM and signature based at POS/MEs.. The card can be used at ATMs for cash withdrawal at all ATMs under bilateral arrangement. This Card is available in all our branches free of cost. It is a perfect substitute for Gift Vouchers sold by many retail houses as its use is not restricted to any particular Merchant Establishment/ Point of Sale. exclusively designed for vibrant youth of Indiabetween 18-30 years of Age. State Bank of Hyderabad. Funds can also be transferred using VISA . issued in association with VISA International. Gift Cards Presenting Gifts to Employees is an integral and unique culture in India.ATM Services State Bank offers convenience of over 8000 ATMs in India. These cheques. You can not only draw cash at ATM but also swipe it for. With the advancement of Banking. It is usable at all VISA enabled Merchant Establishments and POS by signature/ PIN. State Bank of Saurashtra. The SBI Gift Card. are accepted at the issuing bank branches only. however. Gift Card is a Pre-paid Plastic Card supported by Magnetic-strip based technology. is one such product which gives the comfort of convenience and wide acceptability. State Bank of Mysore. shopping and traveling at POS/MEs. Gift Cheques were introduced. the largest network in the country and continuing to expand fast! This means that you can transact free of cost at the ATMs of State Bank Group (This includes the ATMs of State Bank of India as well as the Associate Banks – namely. State Bank of Patiala. SBI Commercial and International Bank Ltd. This card can ‘be used for e-commerce i. and State Bank of Travancore) and wholly owned subsidiary viz. Traditionally. State Bank of Indore. for shopping through internet by using VbV (Verified by VISA) certified internet websites. allowing the employees to use the money according to their wishes.
stop cheque payment and issue standing instructions. drafts. invest and renew Term Deposits. fast and convenient . Internet banking Simple. Bankers cheques. request for third party transfers.EFT) is available with our branches in the clearing zone of Service Branches at Kolkata.always open. view your account. You can now check your account balances.Monet Transfer facility. RBIEFT Inter-bank Electronic Funds Transfer facility of the Reserve Bank of India (RBI . You can also transfer funds to your other accounts at the Branch.New delhi and Chennai. Bank of Baroda .anytime -anywhere . Using our ATMs. card holder can also transfer funds to other VISA Debit/ Credit Cards issued by our Bank or any other Bank. request for cheque book. Mumbai .
the Bank of Baroda survived the economic depression by dint of its financial integrity. the bank has its presence in 25 countries across the world. This has transcended down to the present ages and has become the motto of the bank. Bank of Baroda has progressively taken a step towards commitment and values by providing uncompromising standards of service to its customers. with his visionary insight. stakeholders. the bank has been growing and expanding its branches successfully. planned the beginning of a reputed journey which over the years. Heritage & Ethics of Bank of Baroda: The Bank of Baroda was started on 20th July 1908 under the Companies Act of 1887. . However.Bank of Baroda India The Bank of Baroda was established in the year 1908 in Baroda. Ever since its inception. employees and the like. It is interesting to note that during the period of 1913 to 1917. almost 87 banks in India succumbed to a financial crisis. 10 Lakhs. business prudence and concern uncompromising concern about its customers and clients. At the turn of a century. The initial capital invested was Rs. came to be known as the Bank of Baroda. The Maharaja was none other than Sayajirao Gaekwad who.
Slowly but surely. hiring diverse functional specialists to support line functionaries and complementing the technical competencies of its people by imparting conceptual. Service delivery standards were stipulated. Overseas operations were revamped and structural changes intensified in the territories to cater to second generation NRIs. People-Initiatives Bank of Baroda has always had an immense faith in the infinite potential of its people. Employees across the board were inculcated with the marketing concept. People initiatives were blended with IR initiatives to create an effectively harmonious workplace. It diversified into areas of merchant banking. housing finance. the move to become a one stop financial supermarket had been set in motion. This has been historically demonstrated in its recruitment practices. reflecting the positive public perception of the Bank's fundamental financial strength. The Bank provided around a dozen CEOs to the industry. credit cards and mutual funds. Strategic HR interventions like. Aggressive marketing became the new business philosophy. In 1996 the Bank tapped the capital market with an IPO of Rs 850 crores.men who went on to build other great institutions. gave the Bank competitive advantage. where everyone prospered. Despite adverse market conditions prevailing then. the issue was over subscribed. according cross border and cross cultural work exposure to its managers. In 1995 the Bank raised Rs 300 crores through a Bond issue. Financial-Initiatives New norms for capital adequacy required new capital management strategies. . The Bank orchestrated its business strategies around the centrality of the customer. managerial and leadership skills. placement processes and promotion policies. Technology was adopted to add punch. The elaborate man management policies also made the Bank a breeding ground for business leaders. A string of segment specific branches entrenched operations in the profitable markets. developmental initiatives.INITIATIVES Marketing-Initiatives The mid-eighties marked the beginning of the shift to a buyers` market.
through ALPMs. the Bank has adopted a revolutionary new business strategy that will be enabled by a revolutionary new IT strategy. The new IT strategy. Payment Gateways . Starting with ledgers. in the process of implementation will see the deployment of Core Banking Systems. Quality-Initiatives In its relentless striving for quality perfection. Multi Service Transaction Switch. the Bank reworked its distribution strategy. covering 70% of its network and 91. The conversion to an IT savvy. the Bank has 1918 computerized branches. The e-banking products used state of the art technologies like digital certificates. By end of the current financial. It ventured beyond the brick and mortar delivery channel into ATMs and the OmniBOB range of anytime. A major and strategic step in hi-tech. the Bank is targeting 54 more branches for this quality certification. smart card authentication and secure networking. Alive to the growing complexities of an intensely competitive marketplace and the mounting expectations of customers fuelled by this competition. as a forerunner to full-fledged global treasury operations. to client server based Total Branch Mechanization Systems. to ledger posting machines. the Bank graduated to the use of Unix based systems to Mainframes. Today. .64% of its business. Towards creating a future Bank of Baroda.Digital-Initiatives Bank of Baroda pioneered the shift from manual operating systems to a computerized work environment. The-Future Revolutionary and discontinuous changes in the operating environment are a stark reminder that business success is 'impermanent'.all geared to deliver convenience banking. anywhere electronic channels of PC banking. the Bank secured the ISO 9001:2000 certification for 15 branches. market driven bank will be a prerequisite to survival and growth. The emergence of IT as a major driver for change. has accentuated the need to initiate a major transformation program. was the establishment of the Integrated Treasury branch. telephone banking. Actioning this strategy will position Bank of Baroda as India's uncontested premier bank.
At Bank of Baroda, change is a journey. It has a beginning. There will be no end. It will be a long and difficult march. And the Bank will emerge stronger, more resilient and positioned to become India's first bank of truly global standards. The relocation to the imposing Baroda Corporate Centre, is a true reflection of the Bank's resolve to move ahead of the times. It will not be out of place now, as it stands on the threshold of a digital era, to echo the same sentiments that guided the Bank in its platinum jubilee year - 'a promising future is the sequel to a glorious past'.
Products & Services
ElectronicClearingServices(ECS) This is a unique system under which Bank of Baroda helps companies and institutions making heavy payments disburse these amounts directly into the bank accounts of the beneficiaries such as account holders, shareholders, investors etc. Key Benefits
Prompt payment on the due date. Convenient receipt of money reduces trips made to the bank for depositing dividend/interest warrants.
Elimination of fraudulent encashment against instruments lost in transit.
BOBCashReach: A tailor made product for customers, that enables faster remittance of funds. A more economic, convenient, smoother mode of operation which can be availed of by a well supported network of centres.
Smoother: Time and money spent on dispatches are saved More economic: Involves a premium service at nominal cost with a pickup service from the client's office.
More Convenient: The collection and credit are both done on days convenient to the client. Centred towards client benefits: All the benefits are passed on to the clients, in terms of enhanced quality, ease of liquidity and profit maximisation through better resource management. Spread over a good network: Initially launched at 5 centres, with the connectivity to be now fanned over to around 200 centres.
OutwardBillsforCollection: All branches of Bank of Baroda have the facility of collecting Cheques, Demand Drafts, Interest Warrants, Dividend Warrants, Refund Orders, Clean Bills and Documentary Bills from customers and various centres.. All Cheques and other instruments are collected into properly introduced accounts and sent for collection on the day of receipt from the customers or the next working day. TimeBoundCollection: All branches of Bank of Baroda are prompt in terms of the collections and forwarding of cheques and other instruments. For metro cities, when financial instruments are presented in a branch, the proceeds are credited to the customer's account on the same day in the following week. For state capitals, (and centres with more than 100 branches), amount is credited only after 10 days. If these instruments are not collected within 14 days of lodgement, interest @ 2% per annum over savings bank rate is paid and is credited to the customer's account, without the customer having to claim it. Branches also accept requests for collection of Loan Certificates / FDRs issued by Joint Stock Cos.; prize money of Lottery Tickets, Foreign Currency Notes etc. The bank levies service charges as stipulated from time to time.
InwardBillsforCollection: Bills of Exchange, Promissory Notes, Hundi's etc. (Clean / Documentary), payable locally but received from outstation branches / banks / parties are treated as "Inward Bills for Collection". Also, Bills received from Bank of Baroda branches and from other banks, directly from drawers or outstation parties are treated as Usance (??) Bills. BOBQuick: The Funds collected in this offering are credited to the customer's account within a guaranteed period of 7 days. Bank of Baroda's BOB Quick ensures a better collection service, which creates new avenues of income and ensures better investment of funds. All cheques amounting to Rs. 25000/- and above are drawn on select banks and are eligible for "Quick inter station clearing". Rs. 50/- per packet is charged for courier charges with an additional but nominal collection charge. NationalClearingSpecialFacilities: This product is an undertaking by the Reserve Bank of India, for inter city clearing of cheques between the four metropolitan centres of Delhi, Mumbai, Chennai and Calcutta. Key Benefits
Settlement of transactions on the basis of net value of instruments. All financial instruments are cleared promptly with the introduction of mechanised cheque processing, achieved through MICR technology. The concept of clearing has been extended to clearance of outstation cheques also. In addition to the four metropolitan centres, certain other centres have also been identified for "One Way National Clearing". These centres are Nagpur, Ahmedabad, Hyderabad, Bangalore, Pondicherry, Trichy, Trivandrum, Vellore, Baroda, Erode, Madurai, and more.
Baroda Internet Banking
"Baroda Connect" is an internet banking facility introduced as an alternative delivery channel for rendering effective customer service on 24 X 7 basis. It offers unique customized services to both Retail & Corporate customers. Under THIS facility customer can
View Account summary of all operative, deposit and loan accounts View all multiple Account information online with a single user id Get Account statements
Under Transaction facility customer can Transfer funds immediately or schedule for a future date to self linked and third party Pay through Online Tax - Direct and Indirect taxes online such as Excise Duty, Service Tax, Customs Duty, Income Tax etc. Pay through Baroda Easy Pay - utility bills like electricity, mobile etc , Donations, Subscription, Travel plan booking online Book Rail Ticket – IRCTC Additionally a Corporate user can
Set up multiple workflow of initiators and approvers for transactions and requests View all trade finance related facilities availed eg. Export / Import LC, Inland/ Export Bills, Forward Contracts Bank Guarantees, Packing Credit account etc Use upload facility for single debit-multiple credit, multiple debit-multiple credit and single credit-multiple debit.
CHAPTER 5 DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF GENERAL QUESTIONS
1) Which type of service do you prefer the most from the banks? a ATM services b Internet banking c Mobile banking d Retail banking M o s t P re fe rre d Ba n kin g Se rv ic e A T M Se rv ic e s In te rn e t Ba n kin g 7% 14% M o b ile Ba n kin g Re ta il B a n kin g 11% 68% 2) Your Account Decisions are influenced by: a Oneself b Market research c broker d friends/relatives .
In flu en ce Of A cco u n t Decis io n s On es elf M arket Res earch 18% 2% 4% Bro ker Frien d s /Relativ es 76% 3) Which factors do you consider before opening account or in purchasing new plan in a particular bank? A B C D E Financial position Current Market Position Goodwill Future prospects Services provided .
Factors cons idered before opening an Account 12% 28% 8% Financial position Current M arket Pos ition Goodwill 22% Future prospects Services provided 30% 5) Which bank is more secure according to you? a ICICI b HDFC c SBI d BOB .
H1: Preference towards public/private sector banks and age group are dependent of each .M ost Secure Bank ICICI HDFC SBI BOB 20% 25% 22% 33% ANALYSIS OF CHI SQUARE TEST OF INDEPENDENCE Chi square test of independence Hypothesis: H0: Preference towards public/private sector banks and age group are independent of each other.
where Fo= observed frequency Fe= expected frequency for each cell Fe=(frequency for the column)(frequency for the row)/n Calculation observed frequency Age group Preference towards banks Public sector banks Private sector banks Total of column 18-25 13 22 35 26-35 21 16 37 36-45 31 23 54 46-55 36 19 55 55 and above 16 3 19 Total of raw 117 83 200 Fo 13 21 31 36 16 22 Fe 20.95 0.59 3.47 (Fo-Fe)^2 55.73 0.14 3.other.59 23.01 0.35 14.82 4.45 2.80 [(Fo-Fe)^2]/Fe 2.02 0.41 0.53 Fo-Fe -7.12 14.84 .64 -0.81 55.88 7.48 21.18 11.59 32.64 31.48 -0.
5/0.25 Hence Cramour’s value = [Φ/Min (r-1) or (c-1)] ^½ = 0.03 χ2Cal = 12.64 0.5 Upper limit = [(r-1)/r] ^½ = 0.83 7.59 -3.41 0.70 Now Out of 0.70 = 71.70.03 0.35 14.49 Now in this case χ2cal > χ2tab hence null hypothesis is rejected and alternative hypothesis is accepted. Conclusion: Preference towards public/private sector banks and age group are dependent on each other.64 3.5 Therefore strength = 0.16 23 19 3 15.02 0.89 0.36 22. strength = 0.91 0.91 Degree of freedom=(R-1)*(C-1) = (2-1)*(5-1) =4 Confidence level = 95 % Therefore χ2tab = 9.42 % .89 0.83 -4.67 23. Strenth of contingency co efficient: Cramour’s value =[Φ/Min (r-1) or (c-1)]^½ Now Φ = [χ2 / n ]½ = 0.41 22.
5 5 3.5 4.7 0.8 6 5.6 5.46 Responsiveness 1.6 5.4 0.9 1.2 6.8 3.8 4.4 5 5.45 .4 5.8 4.8 5.8 5.6 0.4 1.8 5.7 5.6 1.9 3.2 2.4 5.6 0.5 4.SERVQUAL ANALYSIS Dimension Calculation of servqual scores for ICICI bank Statement Expectation Perception Gap Score Score Score 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 6.8 3.3 0.6 0.25 Average for Dimension 1.4 1.3 3.2 4 3.4 5.5 6 5.6 5.1 0.2 4.2 0.2 0.2 1.4 1.6 5.35 Reliability Tangibility 0.25 2.8 1.6 1.
74 0.9 5.7 5.08 1.4 1 0.68 .1 1.4 0.74 0.2 3.7 5.1 2.2 2.7 1.5 5.5 6.45 1.Assurance Empathy 18 19 20 21 22 23 24 25 26 27 28 5.136 Reliability Tangibility Responsiveness Assurance Empathy 1.6 6.46 1.7 2.5 6.1 0.6 1.6 4.35 0.3 5.68 Unweighted Average SERVQUAL score: 1.9 4.6 6.9 2.75 6 6.5 2 0.3 4.67 4.7 5.9 5.6 5.
2. 3.45 1.4 1.2 . personnel and communication materials.8 1. The appearance of the banks physical facilities.7 29.68 0.2 1 0.6 0.8 0.4 0.The bank's ability to perform the promised service dependably and accurately. equipment.74 Average gap score 1. Points 19. The banks willingness to help customers and provide prompt service.2 0 Series1 0.46 Reliability Tangibility Responsiveness Assurance Empathy Dimension Gap score Minimum Maximum Dimension Tangibility Assurance Weightage given by respondents to different dimension 1.ICICI bank 2 1.6 1.35 1.5 11.
93 0.4.2 17. The caring individual attention the bank provides its customers. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence.11 1.7 100 SERVQUAL Dimension Reliability Tangibility Responsiveness Assurance Empathy Score from Table 1 1.7 29.26 6.32 Weighting Weighted from Score Table 2 19.93 0.5 11.9 21.Score from table 1 5.11 1. 5.46 1.94 1.94 1.74 0.68 7.37 .19 Average weighted score SERVQUAL Dimension Weighted Score Reliability Tangibility Responsiveness Assurance Empathy 1. Total: 17.7 1.65 6.37 1.62 0.9 21.54 5.45 1.62 0.35 0.55 5.
7 5.50 1.2 0.93 1.62 0.9 6 6.5 6.1 0.6 0.9 5.94 Series1 weighted score Re sp on siv Re l Dimension Weighted score Maximum Minimum Dimension Tangibility Responsiveness Calculation of servqual scores for HDFC bank Dimension Statement Expectation Score 7 6.37 0.3 5.4 .2 0.7 Gap Score Average for Dimension Reliability Tangibility 1 2 3 4 5 6 7 8 Em 0.2 0.11 1.8 6.50 0.50 2.5 5.2 0.ICICI 2.1 Perception Score 6.00 0.5 0.4 5.8 5.00 1.00 en es s y ia bi l it y As su ra nc e Ta ng ib ilit pa th y 1.6 5.28 0.4 0.4 6 5.
9 0.9 4.6 6.6 1.2 5.5 1.9 0.03 0.7 5.2 0.3 4.6 4.7 6.3 5.7 0.1 0.3 1.7 4.4 1 0.1 3.8 0.7 6.8 6.8 0.03 0.45 0.78 .78 Unweighted Average SERVQUAL score: 0.9 4.9 0.28 0.4 1.5 5.8 4.9 6.5 1 0.5 0.9 4.2 4.1 5.5 1.Responsiveness Assurance Empathy 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 6.5 5 6.3 6 6.678 Reliability Tangibility Responsiveness Assurance Empathy 0.3 6.3 0.7 1.5 4.1 5.5 6.7 0.6 6.4 1.7 6.3 5.3 3.35 5.65 5.2 5.25 5.5 6.2 5.4 6.8 0.8 5.
3 30 15.4 0.2 Average gap score 1.2 0 en es s y 0.HDFC bank 1.78 Series1 1 0.The bank's ability to perform the promised service dependably and accurately. 3.03 0.8 0. Gap score Minimum Maximum Dimension Reliability Responsiveness Weightage given by respondents to different dimension 1.4 0.28 As su ra nc e ia bi lit y bi lit Ta ng i Re l Re sp o ns iv Dimension .6 0. equipment. personnel and communication materials. Em pa t hy Points 22. The banks willingness to help customers and provide prompt service. The appearance of the banks physical facilities.5 .9 0. 2.
4.28 Average weighted score . The caring individual attention the bank provides its customers.4 1.8 1. 5.50 1.1 6.11 1.3 30 15.8 100 SERVQUAL Dimension Score from Table 1 7.4 17.72 6. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence. Total: 14.9 0.98 0.22 22.93 0.5 14.03 0.97 6.78 6.28 0.88 1.Score from table 1 Weighting from Table 2 Weighted Score Reliability Tangibility Responsiveness Assurance Empathy 0.6 5.4 17.
50 0.00 1.00 en es s y Ta ng ib ilit ss ur an ce ia bi lit y pa th y 1.93 0.11 0.SERVQUAL Dimension Reliability Tangibility Responsiveness Assurance Empathy Weighted Score 1.50 2.11 HDFC 2.50 1.93 0.98 1.00 0.50 1.98 0.50 1.88 Series1 Weighted score ns iv Re l Re sp o Dimension Weighted score Maximum Minimum A Em Dimension Tangibility Assurance .88 1.
4 3.3 6.5 6.3 5.3 5 5.8 6.7 5.6 5.52 1.9 1.9 6.4 3 4.4 Average for Dimension Reliability Tangibility Responsiveness Assurance Empathy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1.6 3.2 0.32 1.4 0.7 3 4.1 0.7 0.3 5.4 1.2 0.2 5.2 0.2 2.3 6 5.2 5.8 3.8 5 5 6.3 0.5 6 6.2 0.004 Unweighted Average SERVQUAL score: .9 1.3 1 0.Calculation of servqual scores for SBI bank Dimension Statement Expectation Score 5.7 5.4 3.3 5.13 0.8 1.9 3.7 0.7 2.8 5.9 4.3 2.4 0.7 4 6.5 1.6 2 2 1.4 1.2 5.3 6.5 3.4 3.9 6 5 5.8 5.2 0.3 0.2 0.6 Gap Score 0.7 5 5.3 6.8 5.8 0.5 6.7 6 5.9 4.9 4.85 1.2 0.3 6 Perception Score 5 5.
85 1.52 Re l Re sp o ns iv Dimension Gap score Minimum Maximum Weightage given by respondents to different dimension Em Dimension Assurance Empathy Points .52 1.32 SBI bank 1.4 0.2 Average gap score 1 0.4 1.Reliability Tangibility Responsiveness Assurance Empathy 1.13 0.32 1.2 0.6 0.8 0.2 0 ia bi lit y en es s y As su ra nc e Ta ng ib ilit pa th y 1.85 Series1 1.13 0.2 0.
2 0.8 45 12. 4.85 1.48 5. Total: 20.23 0.23 Average weighted score .39 2.15 5. equipment.92 0. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence.70 1.87 6.13 0.32 5.8 45 12.The bank's ability to perform the promised service dependably and accurately.3 100 SERVQUAL Dimension Score from Table 1 7-Score from table 1 Weighting from Table 2 Weighted Score Reliability Tangibility Responsiveness Assurance Empathy 1.3 1.52 1.1.8 6.9 15 6. The caring individual attention the bank provides its customers. The banks willingness to help customers and provide prompt service. 3. personnel and communication materials. The appearance of the banks physical facilities.9 15 6. 5.68 20. 2.92 0.
92 0.00 en es s y ia bi l it y As su ra nc e Ta ng ib ilit pa th y Series1 1.70 Weighted score 2.39 2.92 Weighted Score 1.92 0.SERVQUAL Dimension Reliability Tangibility Responsiveness Assurance Empathy SBI 3.00 2.23 0.50 0.92 0.00 1.00 0.50 2.39 0.50 1.50 3.70 Re sp on siv Re l Dimension Em .23 0.
8 6.05 0.3 6.3 0.25 6.1 6.88 5.3 5.8 4.9 6.29 1.25 0.97 5.2 1 1.7 6.3 5.3 6.72 6.8 6.1 0.2 0.3 0.65 6.75 4.15 0.7 5.67 .01 4.5 4.7 4.38 0.6 5.6 7 6.9 5.42 0.3 5.15 1 0.3 Average for Dimension Reliability 0.64 Tangibility 0.6 6.13 3.4 0.05 0.6 6.2 6.7 5.43 6.42 Responsiveness 1.4 4.2 1.2 1.75 2.1 0.35 6.7 5 5.25 1.6 7 4 5.9 6.53 0.7 4.3 5.28 0.47 2.3 1.7 5.01 Assurance 0.6 5.78 5 6.8 3.9 0.Weighted score Maximum Minimum Dimension Assurance Responsiveness Dimension Calculation of servqual scores for BOB bank Statement Expectation Perception Gap Score Score Score 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 6.82 4.6 5.6 1.9 5.3 6.8 3.2 0.61 Empathy 0.7 5.
8 0.28 6.67 Unweighted Average SERVQUAL score: Reliability Tangibility Responsiveness Assurance Empathy 0.67 Series1 Re l Re sp o ns iv Dimension .64 0.6 0.61 0.01 1 0.3 0.67 BOB 1. Em .42 1.42 0.2 0 en es s y As su ra nc e ia bi lit y Ta ng i pa th y bi lit 0.4 0.61 0.3 6 0.64 0.2 Average gap score 1.01 0.
61 0.33 Weighting from Table 2 20 25 16.65 1.67 7-Score from table 1 6. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence. 4.92 0.64 0.27 1. 5.36 6.8 30 8.01 1.8 30 8. The caring individual attention the bank provides its customers.01 0.2 Weighted Score Reliability Tangibility Responsiveness Assurance Empathy 1.Gap score Minimum Maximum Dimension Tangibility Responsiveness Weightage given by respondents to different dimension 1.52 1.39 6.42 1.The bank's ability to perform the promised service dependably and accurately.58 5.2 100 SERVQUAL Dimension Score from Table 1 0. 2. equipment. personnel and communication materials. Total: Points 20 25 16.27 Average weighted score . 3.99 6. The appearance of the banks physical facilities. The banks willingness to help customers and provide prompt service.
27 1.27 1.52 BOB 2.01 1.65 1.50 1.92 0.50 2.65 1.52 0.00 1.01 Series1 Weighted score Re sp on siv Re l Dimension Weighted score Maximum Minimum Em Dimension Assurance Empathy .00 0.50 0.92 1.00 en es s y ia bi l it y As su ra nc e Ta ng ib ilit pa th y 1.SERVQUAL Dimension Reliability Tangibility Responsiveness Assurance Empathy Weighted Score 1.
Reliability BANK ICICI HDFC SBI BOB GAP SCORE 1.64 Reliability 1.6 0.4 1.4 0.28 Series1 0.13 0.64 Banks Reliability Gap score Minimum Maximum Bank HDFC ICICI .6 1.35 0.35 1.8 0.2 0 ICICI HDFC SBI BOB 0.28 1.2 1.13 Avg gap score 1 0.
1 0 ICICI HDFC SBI BOB 0.8 0.46 0.9 0.7 0.2 0.85 Avg gap score 0.4 0.6 0.5 0.42 Series1 Bank Tangibility Gap score Minimum Maximum Bank HDFC SBI .42 Tangibility 0.Tangibility BANK ICICI HDFC SBI BOB GAP SCORE 0.85 0.4 0.4 0.46 0.3 0.
2 0 ICICI HDFC SBI BOB Series1 Bank Responsiveness Gap score Minimum Maximum Bank BOB ICICI .03 1.2 1.4 1.2 1.4 1.4 1.6 1.2 1.03 1.4 0.Responsiveness BANK ICICI HDFC SBI BOB GAP SCORE 1.01 Avg gap score 1 0.8 0.01 Responsiveness 1.6 0.
2 0 ICICI HDFC SBI BOB 0.6 0.8 0.74 Avg gap score 1.52 0.4 0.61 Assurance 2 1.52 0.Assurance BANK ICICI HDFC SBI BOB GAP SCORE 1.74 0.61 Series1 Bank Reliability Gap score Minimum Maximum Bank SBI ICICI .6 1.9 0.8 1.2 1 0.4 1.9 0.
32 Reliability Gap score Minimum Maximum Bank BOB SBI .2 0 ICICI HDFC Bank SBI BOB 0.78 1.67 Empathy 1.2 1 Avg gap score 0.4 1.68 0.68 0.78 0.32 0.4 0.6 0.8 0.Empathy BANK ICICI HDFC SBI BOB GAP SCORE 0.67 Series1 1.
01 0.32 BOB 0.4 1.35 0.8 1.6 1.46 1.4 0.45 1.28 0.78 SBI 1.52 1.67 comparision of gap score 2 1.9 0.74 0.13 0.Comparision of gap score Bank Dimension Reliability Tangibility Responsiveness Assurance Empathy ICICI 1.2 1 0.64 0.2 0.03 0.85 1.4 Avg gap score 1.42 1.68 HDFC 0.6 0.8 0.2 0 Reliability Tangibility Responsiveness Dim ension Assurance Empathy ICICI HDFC SBI BOB .61 0.
67 Series 1 0.6 0.4 0.2 1.68 1 0.14 1 1 unweighted avg servqual score 0.2 0 ICICI HDFC Ba nk SB I BOB BOB is having minimum unweighted average servqual score amongst all the four banks. Reliability Bank weighted score .14 0.67 1.8 0.Bank ICICI HDFC SBI BOB Unweighted average Gap score 1.68 0.
23 1.ICICI HDFC SBI BOB 1.23 1.6 1.11 1.5 1.2 0 ICICI HDFC SB I B OB Serie s 1 Bank Reliability Weighted score Maximum Minimum Bank HDFC ICICI Tangibility .27 Reliability 1.5 1.4 0.11 1.27 Weighted score 1 0.6 0.4 1.8 0.2 1.
93 1.5 Series1 2 1.Bank ICICI HDFC SBI BOB weighted score 1.5 1.65 Tangibility 2.5 0 ICICI HDFC Bank SBI BOB Tangibility Weighted score Maximum Minimum Bank HDFC SBI Responsiveness .92 1.98 1.65 Weighted score 1.92 0.98 0.93 1 0.
39 Series1 Bank Responsiveness Weighted score Maximum Minimum Bank BOB SBI Assurance .62 0.39 1.62 0.93 Weighted score 0.2 0 ICICI HDFC SBI BOB 0.2 1.01 1 0.01 Responsiveness 1.93 0.Bank ICICI HDFC SBI BOB weighted score 0.8 0.6 0.4 0.
5 2 1.Bank ICICI HDFC SBI BOB weighted score 0.92 1.5 3 2.5 1 0.5 0 ICICI HDFC SBI BOB 0.94 0.92 Assurance 3.94 0.88 1.92 weighted score 2.88 2.92 Series1 Bank Assurance Weighted score Maximum Minimum Bank SBI HDFC Empathy .
Bank ICICI HDFC SBI BOB weighted score 1.11 0.8 0.2 1.52 Series1 Bank Empathy Weighted score Maximum Minimum Bank ICICI BOB .37 1.37 1.7 0.52 Empathy 1.7 0.6 0.4 0.4 1.2 0 ICICI HDFC SBI BOB 0.6 1.11 Weighted score 1 0.
11 1.39 2.65 1.00 1.52 comparision of weighted score 3.62 0.92 0.94 1.Dimension Reliability Tangibility Responsiveness Assurance Empathy Comparision of weighted score Bank ICICI HDFC 1.92 0.01 1.50 0.50 1.98 0.00 0.88 1.23 0.93 0.37 1.00 Reliability Tangibility Responsiveness Assurance Empathy Bank HDFC Bank SBI Bank BOB Dimension .70 BOB 1.00 2.11 SBI 1.92 0.50 3.50 weighted score Bank ICICI 2.50 1.93 0.27 1.
16 1.28 1.14 ICICI 1.28 Avg weighted score 1.18 1.Bank ICICI HDFC SBI BOB Avg weighted score 1.26 1.23 1.2 1.22 1.27 1. .24 1.23 Series 1 HDFC Bank SBI BOB HDFC is having highest average weighted score amongst all the four banks.19 1.3 1.27 1.19 1.28 1.
.CHAPTER-6 KEY FINDINGS Key Findings for general questions According to respondents the most preferred banking service is ATM service followed by mobile banking. internet banking and Retail banking.
From the Chi square test of independence. the gap score for tangibility is minimum followed by reliability . goodwill. reliability. For SBI bank. assurance and responsiveness. For BOB bank. financial position and current market position.42%. the gap score for tangibility is minimum followed by empathy . HDFC and ICICI. it has been found that Preference towards public/private sector banks and age group are dependent on each other and the strength of the same is 71. Weight for five dimensions . empathy. responsiveness and assurance. Most of the respondent’s account decisions are influenced by themselves. the gap score for assurance is minimum followed by tangibility.the gap score for reliability is minimum followed by tangibility.empathy and responsiveness. For HDFC bank . According to respondents most secure bank is SBI followed by BOB. responsiveness and empathy.reliability. Key Findings for servqual questions Gap Score For ICICI bank.assurance . Most important factor which respondent consider before opening an account is Future prospects followed by services provided.
Weighted score For ICICI bank. reliability. tangibility. assurance and responsiveness. assurance and responsiveness. the highest weight is given to tangibility followed by reliability. For SBI bank. For BOB bank. For ICICI bank. For HDFC bank. empathy. For BOB bank. For HDFC bank. reliability. empathy and responsiveness. the highest weighted score is of dimension tangibility followed by reliability. Comparison amongst banks on different dimensions Gap Score . empathy. For SBI bank. responsiveness and empathy. empathy and responsiveness. the highest weight is given to assurance followed by reliability. tangibility. responsiveness and empathy. the highest weighted score is of dimension assurance followed by reliability. responsiveness and assurance. responsiveness and assurance. the highest weighted score is of dimension assurance followed by tangibility. the highest weighted score is of dimension tangibility followed by empathy. the highest weight is given to assurance followed by tangibility. the highest weight is given to tangibility followed by empathy. reliability. reliability.
32 0.52 .37 1.13 0. HDFC and ICICI.68 0. For empathy the minimum gap score is for BOB bank followed by ICICI.4 1.65 1.01 1.35 0.9 0.92 BOB 1.4 0.52 0.Dimensions ICICI HDFC SBI BOB Reliability 1.61 Empathy 0. Weighted score Dimensions Reliability tangibility Responsiveness assurance ICICI 1. and SBI.42 Responsiveness 1. Unweighted average Gap score 1. SBI and ICICI.11 1.67 For reliability the minimum gap score is for HDFC bank followed by BOB.7 0.5 1.93 0.2 1. ICICI and SBI.23 0.03 1.28 1. SBI and ICICI.78 1.14 0.27 1.01 assurance 1.64 tangibility 0. For responsiveness the minimum gap score is for BOB bank followed by HDFC.11 0. HDFC.67 Bank ICICI HDFC SBI BOB BOB is having minimum unweighted average gap score amongst all the banks followed by HDFC .62 0.68 1 0.85 0.92 Empathy 1.92 0. For assurance the minimum gap score is for SBI bank followed by BOB.74 0.94 HDFC 1. For tangibility the minimum gap score is for HDFC bank followed by BOB.88 SBI 1.93 0.46 0.39 2.SBI and ICICI.98 0.
Bank ICICI HDFC SBI BOB BOB. ICICI and SBI. Avg weighted score 1. BOB and SBI.SBI and ICICI. For responsiveness the highest weighted score is of BOB bank followed by HDFC. For assurance the highest weighted score is of SBI followed by BOB.27 HDFC is having highest weighted score amongst all the banks followed by .23 1. SBI and BOB. ICICI and HDFC. For tangibility the highest weighted score is of HDFC bank followed by ICICI. SBI and ICICI. For reliability the highest weighted score is of HDFC bank followed by BOB.19 1.28 1. For empathy the highest weighted score is of ICICI followed by HDFC.
.CHAPTER-7 CONCLUSION ATM is the preferred service.
. For ICICI bank tangibility is best amongst all other dimensions. which shows that customers are more satisfied with HDFC bank for the services provided by them. online banking facilities. time saving technology facilities and facilities for senior citizens of the bank. For HDFC bank Reliability is best amongst all other dimensions. SBI is the most secure bank. which shows that customers are satisfied about the safety of their tranctions with the bank. SBI and ICICI have comparative higher unweighted average gap score. HDFC bank has the highest weighted score amongst all the banks. BOB and HDFC have comparative lower unweighted average gap score. There is a dependency relationship between age group and preference towards public/private sector banks. error free records and sincerity of solving customers problems of the bank. For SBI and BOB bank assurance is best amongst all other dimensions. which shows that customers are satisfied with timely services. which shows that customers are satisfied with visually appealing facilities.
.CHAPTER-8 RECOMMENDATIONS ICICI and HDFC bank should emphasize on improving their services on responsiveness and Assurance.
In general responsiveness is the dimension for which the weighted score of all the four banks is less comparative to other dimension so every bank whether public sector or private sector should consider their responsibility towards their customers and should provide proper training to their employees so that they can satisfy their customer. If we look at both the public sector banks. ICICI and HDFC should build confidence and trust in their customers regarding the safety of their transactions and other services provided by the banks. SBI and BOB should emphasize on improving their services on responsiveness and empathy. CHAPTER-9 BIBLIOGRAPHY List of web-sites. assurance is common dimension which have got less weighted score . . In private sector banks. Though internet banking is convenient and user friendly. respondents don t prefer it more because of safety issues so all the banks should make their customers aware about the benefits of internet banking and should provide accurate services . empathy is common dimension for which both the banks have got less weighted score which shows that customers are not getting individual attention so SBI and BOB should improve their services on empathy dimension.
www.com 11.com 13. www.bobibanking.emeraldinsight.com 9. www. www.com 16. www.com 5. www. www.statebankofindia.in 10. www.com 21. www.org. www.com 18.com 20.banknetindia.1.outsource2india. www. www.efta.com 3.about.istheory. www.org.icicibank.hdfcbank.bankofbaroda.com 15.indiamart.com 12. www.hdfcindia.mapsofindia. www.com 2. www.rbi.in 14.business.indbankonline.onlinesbi.americanexpress. www.wisegeek.com 8.com 4.12manage. www.com .com 7. www.org 19.iibf.com 6. www. www.com 17.
Seventh Edition . Fifth Edition Richard I.www.Levin.j. GremblerD. A. and Pandit A.22.org 23. “Service Quality: Gap in the Indian Bank Industry” The ICFAI Journal of Marketing Management.D.David S..wikipedia. Bitner M..www. Naresh K.Rubin –Statistics For Management.:Service Marketing Integrated customer Focus Across The Firm” .Malhotra : Marketing Research – An applied orientation.com List of books Zeithmal V. Fourth Edition Zillur Rahman.marketresearch..
1) Which type of service do you prefer the most from the banks? a ATM services b Internet banking c Mobile banking d Retail banking 2) Your account decisions are influenced by . We assure you that data provided by you shall be kept confidential.CHAPTER-10 Annexure (Questionnaire) Questionnaire Dear sir/madam We are students of NRIBM Ahmedabad. Presently working on a project on SERVQUAL Analysis of Banking services and comparative analysis of customer satisfaction of various banks. We request you to kindly fill the questionnaire below.
a Oneself c Broker b Market research d friends/relatives 3) Which factors do you consider before opening account or in purchasing new plan in a particular bank? A Financial position B Current Market Position C Goodwill D Future prospects E Services provided 4) Which bank do you prefer the most from the following? a) Public sector bank b) Private sector bank 5) Which bank is more secure according to you? a ICICI b HDFC c SBI d BOB e others SERVQUAL QUESTIONS The following statements relate to your feelings about the particular bank you have chosen. we are interested in a number from 1 to 7 that shows your Expectations and perceptions about the bank. Here. You should rank each statement as follows: Strongly Disagree Strongly Agree . Please show the extent to which you believe this bank has the feature described in the statement.
1 2 3 4 5 6 7 .
17. The Bank has good ATM’s services 10. 12. Assurance 18. Employees are good in explaining the various services the Bank provides. 16.Statement Reliability 1. 14. Tangibility 5. The Bank has enough provision for facilities for senior citizens in terms of management of queue. etc. 2. The Bank has accessible materials like forms. The Bank insists on error free records services. broachers. 7. E-Score P-score . Employees in the bank give you prompt service. 8. sufficient seating arrangement. Customers feel safe about their transactions 20. The Bank maintains visually appealing physical facilities like Reception. 3. Employees instill confidence In the customers 19. stationary associated with services. solving queries. The Bank provides timely service. Responsiveness 13. 9. Employees in the bank are always willing to help you. Employees are competent and knowledgeable. Employees give sufficient attention to properly respond to the senior citizens. Employees in the bank are never too busy to respond to your request. drinking water facility etc. 15. The Bank shows sincere interest in solving a customer’s problem. The employees are decently dressed. 4. The Bank is well equipped with the time saving technology facility like phone banking and mobile banking. The Bank provides required and accurate information when needed. The Bank has different properly identified counters. The Bank maintains sufficient and easy to use Online Banking facility 11. 6.
The bank's ability to perform the promised service dependably and accurately 3. equipment. The appearance of the banks physical facilities. The knowledge and courtesy of the bank's employees and their ability to convey trust and confidence. 4. 2.Features 1. Total: Points 100 Personal details: Name: Address: Contact no: Age: 1) 18 – 25 . personnel and communication materials. 5. The banks willingness to help customers and provide prompt service. The caring individual attention the bank provides its customers.
000 4) 30.001 to 40.000 5) 40.001 to 20.2) 26 -35 3) 36-45 4) 46-55 5) 55 and above Occupation: 1) Student 2) Government employee 3) Private employee 4) Professional/ self employed 5) Housewife Income: 1) Less than 10.001 to 30.000 3) 20.001 and above .000 2) 10.