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Dr. V.N. Bedekar Research Institute Of Management Studies

Report on

Research Methodology Submitted to: - Ms. Gitanjali Kapoor

By Researchers: Nikita Dandekar Purva Jain Shubhangi Jawale Meghna Patil Reena Kamat P-05 P-11 P-12 P-25 P-42

We would like to take this opportunity to convey our heart- full thanks and deep appreciation for the help rendered to us by all resulting in successful completion of our project. We wish to give grateful acknowledgement to all helpful people whose experience and guidance helped us a lot to make this project a success. We are highly indebted to our project guide Ms. Gitanjali Kapoor for her continuous support and guidance without which this project could not have been in reality. We would also like to thank Mrs. Saroj Mishra who co-operated and helped us for the completion of our project.

Research Methodology
Research is a diligent enquiry and careful search for new knowledge through systematic, scientific and analytical approach in any branch of knowledge. Constant search and research are guiding factors off research which helps to discover new facts. The search for knowledge also helps to accept, reject or modify existing facts or knowledge. It is a systematic effort to gain knowledge, truth and broad principles in a verifiable and objective way. Research brings us to hypothesis, which is a proposition made as a basis of reasoning without the assumption of its truth. Since it is a supposition that can only be the starting point of a research based on known facts, a hypothesis has to be validated empirically. Every hypothesis can thus be proved or disproved. Hence when a hypothesis is stated, the null (or opposite) hypothesis must be stated alongside and their notations conventionally being H. # 1 and H # 0. Once a hypothesis has been tested and proved it becomes a theory. The process of converting a hypothesis into theory is the backbone of Research Methodology. And this process itself has a sequence known as the core methodology or method. It is called the 5 D. The first D stands for definition. Here the position of the research, the subject to be studied, the ambit of inquiry, the purpose of the study and the limitations of the research are stated. This is needed in the interest of clarity. The second D stands for diagnosis. The research must diagnose the internal environment of business and the external environment of business using qualitative and quantitative techniques. Just as a doctor uses the thermometer and the blood sample test to determine what kind of fever you have so in research we need to uses a set of methods to arrive at a finding. Cross-referencing of data is very important and so is correlation. The third D stands for design and here we make the research design i.e. how the study will proceed. As we had proceed with the questionnaire and personal interview format. The fourth stage is called development. Based on the results research the hypothesis is reformulated and the direction of the inquiry is finalised. The fifth stage is called decision where when the study analyses the facts and arrives at a conclusion, which has some social, political, economic or technological significance. This is also called actualising the findings or implementing the intervention.

Objective of Research. To find out the customer preference for Private Bank Services and Nationalised Bank Services. To find out reasons for difference in services of Private Banks and Nationalised Banks.


Indian Banking Sector After 1990s Banking Sector Dominated by Nationalised scenario has been changed, Banks since Independence. by introduction of LPGLiberalisation, Privatisation and Globalisation.


State Bank of India, Bank of ICICI Bank, HDFC, Axis, India, Bank of Maharashtra, IDBI Bank of Baroda.

Nationalised Banks are one Safety/Security in terms of grade safer than Private Private Banks also provide Investment: Banks in terms of long term various security and safety prospect and investment. measures in terms of investment and borrowings. Nationalised Banks are gearing up with new services Regarding Services Private updated technology to remain Banks had outpaced in competition. Nationalised Banks, and creating much more competition for these Banks SBI is the number one bank in India and number of ATMs are More you can find ICICI Bank is the second ATMs at each and every largest Bank in India and Railway Station across number of ATMs is more


ATM & Branches:

Mumbai and Thane region which makes convenience to public and Number of branches of NB are more compared to private Banks.

than 3000 and overall Private Banks number of ATMs has been increasing it has ATMs at every location across Mumbai and Thane usually located at Railway Station, Malls, Theatre, Petrol Pump etc.

Online Banking:

Nationalised Banks have started online banking services but most of their customer prefer personal visit to Bank Branches.

Private Banks have introduced the trend of online banking like Internet Banking, Phone Banking etc people prefer more such services in todays busy world where every thing is done at one single click rather than visiting the Branches.


Nationalised Banks usually follow Traditional Approach in dealing with customer, they prefer local languages because they interact with all class of customer to build good rapo with customer.

Private Banks deals with their customer with Professional manner and interact with them in good communication skills.

Mobile Banking:

3 Nationalised Banks (SBI, BOI, and United Bank) have Under Private Banks ICICI started this facility to their bank was first to start Mobile customer from July 2008. Banking facility and Visa Bill Pay service through Credit Card and Saving A/c at initial stage they offer for free of cost for their


Loan Process:

Nationalised Banks offer various Loans to their customer with less rate of interest compared to Private Banks and even repayment terms are high for certain loan.

Private Banks Loan process is quicker compared to Nationalised Banks, No more documentation required if you are their Account Holders and they also provided door to door service through their dealers/agents networks.

Working Hours:

Private Banks are more in Nationalised Banks timing customer service and their are rigid not flexible. Strict convenience working hours are flexible and evening 24 time is been followed. hrs phone banking facility is been provided to their customer eg-ICICI Bank is open from 8am to 8pm.

Others: Nationalised Banks provide Gold coins, Agriculture Loans, FD with tax benefits, seasonal gifts to their customer like watches, calendar etc Demat A/c are also open in certain bank with online trading facility now SBI is offering Free Demat A/c option for new customer..

Private Banks offer many services eg ICICI bank is offering 3-in 1 A/c means saving, demat and online trading a/c. Private Banks also offer Gold coins at their Branches, attractive Fixed Deposit Schemes, also provide Home Search Option to their Home loan customer.

Following are the findings of survey about our research:

In this survey we have conducted a research and here we have used Survey Research Method. Our sample size is 50 people. It includes the people who have an account in both Nationalized and Private Bank. And we have done this research in Mumbai and Thane.


Primary data : 1. Questionnaires: In this we have prepared questioner form and filled by the people who have an account in both Private and Nationalised Bank. 2. Personal Interview: we have also taken some interviews with the bank employees and customers. Secondary data : 1. Internet: We have collected lot of information from internet about Private Bank and Nationalised Bank.

Now, our hypothesis is: Ho = People do not prefer private banks services. H1 = People prefer private banks services.

In this pie chart we can see that

7 24 18

24 persons have an account in the nationalized bank. 14 persons have an account in private bank and 7 persons have an account in both banks i.e. Nationalized and private banks.

In above pie chart we can see that

18 32

32 persons felt that the service they get from the bank is average and 18 persons felt that the service they get from the bank is superior.

In this bar chart, you can see that

32 persons felt that the service they get from the Private bank is better than Nationalised Bank. 4 people felt that the service they get from the Private bank is much better than Nationalised Bank. 1person felt that the service they get from the Private bank is worse than Nationalised Bank. 13 people did not have any idea about it.

Here we have used CHI SQUARE METHOD for evaluation

CHI SQUARE is a statistical test commonly used to compare observed data with data we would expect to obtain according to a specific hypothesis.

Now here, N = 50 (N = Number of observation)

O = Observed frequency E = Expected frequency



O (prefer)



E (n/2)



Expected value (E) = 50/2 = 25

Formula = X^2= (0-E)^2/E

Therefore, = (36-25)^2/25 = 4.84 + 4.84 = 9.68 + (14-25)^2/25

Degree of freedom and level of significance

Degree of Freedom = n-1 Degree of Freedom = 2-1 =1 Level of Significance = 5% (0.05) Critical (table) Value of Chi Square = 3.841

Hence the conclusion is :

Since the calculated value > table value i.e. 9.68 > 3.841

So, Ho is rejected And H1 is accepted. Therefore, people prefer Private Bank services than Nationalised Banks.

Why people prefer private bank services over public bank?

The reasons behind this as follows:

Private bank staff is more professional: private bank staff works with dedication. Generally these people are very highly qualified. Private Banks offer good customer service: private banks offer good customer service compare to public banks. Private banks staff handle issue with courtesy and professionalism : private banks staff handle issue with courtesy & professionly.They have very good communication skill Private Banks are good for daily transaction: private banks are good for daily banking transaction. Private bank solve customer problem immediately: problem immediately or in less than 2or3 days. staff in private bank solve

Private Banks is more systematic in nature: private banks works in more systematic manner. There is no lasses-faire attitude. Private Banks involves less paper work: there is less paperwork in private banks. For e.g. in public banks if we withdraw money from bank we have to update our passbook whereas in private bakes we can get online statement. Private Banks has good marketing strategy: private banks adopt different marketing strategy to cope up with competition. Private bank offer various facilities: private banks offer various facility such as mobile banking or e-banking.

Conclusion According to our survey private banks are better in their services but now a days nationalized banks are also ready to face the challenges given by private banks. They are also trying to cope up with private banks regarding the services provided by them in terms of infrastructure, technology and professional approach. Due to the professional approach and customer oriented approach adopted by Private Banks their services have outpaced those of Nationalized Banks.


Reliability: The information collected from people may not be 100% accurate. As we cannot cross check the accuracy of information given by the people. Small Sample size: We have considered the sample size 50 which is very small compared to the vast population of Mumbai and Thane. Limited Area for Research(cant arrive at overall conclusion ) People were not aware of other banks services apart from their own bank : At the time of our survey we have found that many people who had their account with nationalized bank were not aware about the services provided by private banks.

ACKNOWLEDGEMENT We would like to thanks Mr. Vinay Singh Team leader (CART) of ICICI Bank Thane. Mr. Gupta Branch Manager of BOI Mulund Branch. Mrs Chandrakala Shenoy-BOI Mulund Branch For giving us real life opportunity to visit and get details about their services offered and their experience.

Webliography and Bibliography Bibliography Book: -Research MethodologyArya.P.P., Pal.Y. Research Methodology in Management, pp 14 Webliography