A PROJECT REPORT ON IMPACT OF 828 BANKING IN INDIA,

COMPARATIVE STUDY ON ICICI BANK AND UNION BANK OF INDIA BACHELOR OF COMMERCE BANKING AND INSURANCE Semester V 2011-2012 In partial Fulfilment of the requirements for the The Award of the Degree of Bachelor of Commerce (Banking & Insurance)

By BHARTI B ZALA
Roll no - 70 Under the guidance of PROF: VISHAL KADAM
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DECLARATION
I BHARTI ZALA studying in the third year of B.Com (Banking and Insurance) course for the academic year 2011-2012 at S.K SOMAIYA COLLEGE OF ARTS , SCIENCE AND COMMERCE , hereby declare I have completed the project titled IMPACT OF 828 BANKING IN INDIA in fulfillment of the course completion requirement at the University of Mumbai.

I further declare that information presented in this project is true and original to the best of my knowledge.

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ACKNOWLEDGEMENT SUMMARY 1. 1.1 1.2 1.3 1.4 1.5 1.6 2. 2.1 2.2 3 3.1 3.2 3.3 3.4 4 4.1 4.2 5 CHAPTER 1: ABOUT 828 BANKING Introduction Need for 12 hour start up Its also a marketing decision Reasons for start up Disadvantages 12 hour preferred instead of 8 hour CHAPTER 2: SURVEY OF ICICI FOR 828 BANKING Prisoners dilemma Research and sample methodology and design CHAPTER 3: ANALYSIS Customer questionnaire Employee questionnaire Financial performance Limitations of study CHAPTER 4: ICICI BANK Introduction ICICI adopts 828 schedules CHAPTER 5: UNION BANK OF INDIA

5 6 8

12

18

50

55
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6 7 7.1 7.2 8 8.1 8.2

CHAPTER 6: CONCLUSION CHAPTER 7: ANNEXURE Findings Suggestions CHAPTER 8: BIBILOGRAPHY Books Web

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ACKNOWLEDGEMENT
Perseverance, motivation and inspiration have played a great role in success of any venture. It would be incomplete to submit this report without acknowledging the people behind this endeavour and without whose support I wouldnt have been to do this project. It gives me immense pleasure to express my gratitude to everyone who shared with me their precious time and effort during this project. A mammoth job like this calls for both intellectual nourishment and encouragement. I would like to thank our PRINCIPAL Mrs SANGEETA KOHLI ,BANKING AND INSURANCE CORDINATOR Mrs MAHEK MANSURI , internal guide VISHAL KADAM Mr Vikas Rupawte who is
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Assistant Manager- in ICICI Bank, ghatkopar branch who guided me with the information I needed and answered all my questions and imparting his valuable guidance to me. Words can never express the deep sense of gratitude, I feel for ICICI BANK and UNION BANK employees, who has been a constant source of inspiration and encouragement for me.

SUMMARY
This research entails the study of impact of 828 banking undertaken by banks and their impact on their financial position, customers and the stakeholders. . The philosophy that Customer is king is apparently the major reason for this increase in banking hours. Today, the customer is more demanding than ever and only those organizations that can provide value for money and time of their customers, can ensure customer loyalty. Provide value for money and time of their customers, can ensure customer loyalty. This study tries to throw light on what has been the impact of the increase in banking hours on the various banks in India and its incomes, expenses, profits and etc. The project also tries to analyse the responses and reactions of customers, employees and managers to this service
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with aid of questionnaires and personal interviews. The suggestions and feedback about preferential timings by all the stake holders are also found out. The study aims to not only find out financial, marketing and human resource aspects behind the decision to increase banking hours but also to find out whether this is proving beneficial to the Bank.

RESEARCH OBJECTIVE:
To understand the need for increase in banking hours. To understand the impact of this service on: The financial performance of UBI, Dadar branch Industry as a whole Customers Employees To provide suggestions to further increase the benefits of this service.

METHADOLOGY:
The data is Primary data is collected by personally visiting the concerned banks and the secondary data is collected from internet, websites of the concerned banks and from books.

LIMITATION
It

was critical for me to gather the financial data of the bank, so the better

evaluations of the performance of the banks are not possible. Reluctance and resistance on the part of the interviewees (Private Bank) to share information as they considered it as confidential. Banks have certain rules and regulations

CHAPTER1: ABOUT 828 BANKING

1.1: INTRODUCTION TO 828 START UP
Get your team together, split them into small groups, and give them 12 hours to build a new product or service from your existing resources

1.2: NEED FOR 12 HOUR STARTUP

It stimulates creative thinking Allows your employees to try solutions that have been lingering for years Pushes forward simple ideas that can be executed quickly
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 Builds comradely Also Gets rid of toxic ideas that people believe in till they have been proven wrong Most importantly, encourages out of the box thinking. How can we take what we have got and serve our customers better?

1.3: ITS ALSO A MARKETING DECISION

To staff it says, we value your input - let's give it a go To customers it says, we are seeking new ways to help you To management it's driving strategic direction from sales (ideas that work)

RUN WITH IT:

Take this concept and apply it to your business. Can your team come up with some new product ideas / extensions and go from idea to concept within 12 hours.

828 BANKING START UP BECAUSE REMARKABLE IDEAS CANT WAIT

1.4: Reasons for start up
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There is a great impact of increase in banking hours in todays modern and busy world. Most private sector banks implemented the concept of 8 to 8 banking-a twelve hour banking system, more than a year ago. Before we start with the analysis of what has been the impact of this service, let us understand the reasons behind its implementation. Following is a list of few reasons considered by these banks while implementing this service: Finance Ministers verdict: The Union Finance Minister Pranab Mukherjee told banks to function from 8 AM to 8 PM on all working days to serve different types of customers. Competition: With private banks like ICICI and PSU banks like Union bank of India already implementing 12 hour banking, it becomes quite essential for private sector banks like ICICI to follow the trend in order to maintain their clientele. Customer-centred convenience banking: Unlike old days, customers today are more aware and demand prompt services. Also, they would like to visit their banks as per their convenience. Thus, this decision is a completely a customer centric move. To convey a subtle message: We care for u (customers) Attracting new clientele: A customer may be having an account with a bank which works as per traditional timings; i.e. 10 AM to 5 PM. He can get banking facilities even between 8 AM to 10 AM and after 5 PM, by opening an account with bank which offers twelve hour banking.

1.5: DISADVANTAGES OF 8 2 8 WORKING:

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 Working

long hours over the long term is harmful to the person and to the

banks. Being in the office long hours, over long periods of Time, makes way for potential error. Colleagues who are in the office long hours frequently make mistakes caused by fatigue. Correcting these mistakes requires there as well as Energy.
Another

problem is that people who are in the office long hours are not

a pleasant company. They often complaint about other people who arent working as hard .They are irritable and cranky or even angry. Other people avoid them. Such behaviour posses problem, where work goes better when people work together without avoiding one another.

1.6: 12 HOUR BANKING PREFERRED INSTEAD OF 8 HOURS

A strong argument in favour of 12-hour BANKING is that these work arrangements have the potential to eliminate or reduce some of the problems of working hours because work is usually compressed into fewer days each week. Thus staffs are generally required to work fewer hour than they are on 8-hours .This means that there are fewer circadian changes imposed on the body and workers can have more available free time with their family and friends, Therefore, according to this line of argument, 12-hourworking hours can redress some of the conflict staff tend to report between their work schedule and family, biological and community rhythms. However, although there are persuasive arguments suggesting that 12-hour workings are likely to help staff achieve less
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work/non-work conflict, relatively few studies have tested this argument empirically. Many studies have linked work/non-work conflict to fatigue, psychological ill-health, depressed mood and increased physical symptoms amongst 8-hour working but no direct research has examined whether work/nonwork conflict changes with the introduction of 12 hour working.

CHAPTER2: SURVEY ON ICICI BANK FOR 828 BANKING

To further prove that no bank today can afford to work as per traditional timings, this is a Prisoners Dilemma model for ICICI.

Note: The numerical figures used in the table are hypothetical. This is done in
order to get a better understanding of the model.
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2.1: PRISONERS DILEMMA

Competitors Strategy Twelve banking Twelve ICICIs Strategy banking Eight banking hour 500, 1500 700, 700 hour 1000, 1000 1500, 500

hour Eight banking

hour

PRISONERS DILEMMA IS:

It is a situation, under which there are two firms and each firm adopts its dominant strategy. A dominant strategy is the decision that gives the best result for either party regardless of action taken by other. Now, as can be seen in the above table, there are four situations for each firm. Both ICICI and competitor firm implement twelve hour banking system: Both earn Rs.1000 as yearly profit. Both ICICI and competitor firm adopt the system of seven hour banking and both earn just 700 as yearly profit. ICICI adopts twelve hour banking and competitor continues with traditional seven hour banking system. As a result, ICICI earns Rs.1500 as profit and competitor firm earns just Rs.500. The extra income of ICICI may be attributed to customers of competitor opening an account with ICICI. Competitor adopts twelve hour banking and ICICI continues with traditional seven hour banking system. As a result, competitor earns Rs.1500 as profit and ICICI earns just Rs.500.
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Thus, the dominant strategy for both, competitor and ICICI is to have a twelve hour banking system. In a nutshell, no bank can survive without ensuring that its customers get better facilities than its competitors. But before we precede further it is important to note that this service has not only had impact on customers or on income and expenditure of bank, but also on other stake holders as well. The diagram below gives an idea about the scope of this impact on different stakeholders.

8 to 8 Banking
UBI Manageme nt

Custom ers
Busin ess Big Corporate Companies

UBI Employe es
Housewive s, etc.

Stude nts

Sole traders

Service class

Thus, as can be seen in the above figure, increase in banking hours has had impact not only on customers, but also on employees, managers and financial performance of bank. Further this impact has not been same in case of all customers. While some customers under the business class may have benefited
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the most, some of those under the student category may have been hardly affected by this service. Therefore, through this study, I will also try to throw some light on the extent of impact on different stakeholders.

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CHAPTER3: ANALYSIS
3.1: CUSTOMER QUESTIONNAIRE:
The questionnaire is a combination of open ended, single option and multiple option questions. It has been divided into two sections. The first section mainly tries to find out responses directly related to their visit to their bank. The second section aims at finding out if customers find use of e-banking, tele-banking, ATMs more convenient rather than visiting their bank. It also aims to find out the popularity and flexibility of customers with plastic money. Following is the detail analysis of the responses to these questions

Age group of sample:

Age Group

24%

27%

49% Below 30 Between 30 to 60 Above 60

The age was asked in order to determine the age group of the respondents to separate them into different groups.

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This helps in finding out the percentage of senior citizens. During the observation, it was noticed that the majority customers coming into the bank during early morning hours were pensioners.

Occupation

Occupation

9% 13%

20% 7%

51%

Stude nt

House wife

Se rv ice

Busine ss

Re tire d

From the above chart we see that about 50 % of the customers visiting the bank are service class. This class also includes the people who work under some sole trader or firm. Many of them are sent by their bosses/superiors to bank to handle the banking work of their shop. This means that those in service class may not have visited the bank for their own work, but rather for the work of shop they work for. Also, it was observed that the respondents in this category usually came after 10.30 AM, as that is the usual time of shops opening. Students, who formed the next category, included those students who visited the bank to get Demand Drafts for fees payment, etc. Also, this category includes those students who are not very conversant with internet banking and ATMs.
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The respondents under the business category included those who had some business unit of their own. As per the observation, the respondents under this category usually visited the bank before 10 AM. The reason cited by them was that it is convenient to finish banking work before going to work. Another category was that of housewives. The only pattern that I observed in this category was that they visited the bank usually between 12 PM to 7 PM. The last category comprises of the senior retired citizens who visited the bank to collect their pension. These customers usually visited the bank as early as 8.30 AM. The reason they cited was that there were less chances of waiting in queue as not many customers visiting the bank between 8.30 AM and 9.30 AM. As mentioned earlier, the questionnaires are into two sections. The first section mainly deals with the questions which are directly related to the visit of respondents to their bank. Following is the analysis of the first section.

SECTION I
What type of accounts you have in this/these banks?

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Account holders 80 Number 60 40 20 0 Series1 Current 51 Savings 68 Pension 8 Fixed 12

Types of Accounts

As can be seen in the above chart, 51 of the respondents hold a current account. Of this 51, majority respondents belong to the Dadar Branch and some of them also hold savings account with the branch. The ICICI, Dadar branch is in a commercial cum residential area. From small shop keepers to big showroom owners, almost all have a current account with the branch. Also, most of the employees working in these shops and showrooms hold a saving account with the branch. As this question is a multiple choice question, the respondents had the option of marking all the types of account they hold. What is the main reason that you typically visit your bank branch (please choose the single most important reason)?

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Reasons to visit bank 16% 40% 32% 8% To make deposit To get advice for investment decisions To enquire about balance To withdraw cash Other

4%

As can be seen from the above pie chart, majority customers visit a bank for deposits and withdrawals. Majority of these respondents belong to business class who deposit their daily earnings into bank and most of their transactions are through bank. Very few customers visit bank to get advice with investment decisions. In option of other most people said they visited bank for pass book update, for making drafts and for bill payments. This question aims at finding out for which services customers mainly visit a bank branch. What are your banks working hours?

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Bank hours

22%

52% 26%

8 AM to 8 PM

9 AM to 5 PM

Dont know

Among the respondents, 52 % said that their bank functions for twelve hours, i.e. 8 AM to 8 PM. But, what was most surprising that as many as 22 % did not know as to what are their banks timings. Many of them were customers of ICICI. This is a very important point. Most ICICI branches had implemented twelve hour banking service a year ago, but still not all customers were aware about it. This may be because of lack of proper promotion of this service. Many customers were least bothered about the increase in timings and felt there was not much improvement in banks services.

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 Your bank is located near,

Bank Location 7%

42%

51%

Your office area Your residential area Neither near your office area nor near your residential area

The above questions aims to find out the location of bank and how close the customer is to his/her bank. As per the observation many of the shopkeepers in Dadar (W) have their account with ICICI Dadar branch. Dadar being a central location attracts many customers from nearby areas as well. Such situation is likely to create rush. But the twelve hour banking has prevented too much rush at any particular point of time and hence reduced pressure on employees as well as customers. Also, in case of bank being closer to customers residential area provides flexibility to customers (especially housewives and students) to visit the bank as per their convenience. Hence, now customers can take advantage of their bank operating for more hours.

How frequently you visit your bank?

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Visit Bank

41%

35%

15% Everyday Once a week

9%

Every alternate day Once/twice every month

The above chart aims to determine how frequently customers visit their bank. As can be seen from the chart, 41% respondents visit their bank once or twice in a month and 15 % visit bank once a week. The major reason cited by these respondents for not visiting bank frequently is availability of options like ATMs, e-banking and telephone banking. These respondents visited their bank as per their convenience and requirement. Rest 44% respondents included those businessmen who visit their bank everyday or every alternate day. But again most of the respondents in this 44% visit the bank between 10 AM to 2 PM.

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 In your bank, you.

Service time

39%

61%

always have to wait in long Queues to get service dont need to wait much, as services are prompt.

The above chart aims to determine if the increase in banking hours has reduced rush of customers at any particular point of time. 61% respondents say that they dont need to wait much now. Among these 61% respondents, most complimented the bank for having increased the banking hours. Few of their statements are as under: "Previously it was a case of waiting long for your own money. This new service is customer friendly and efficient." Earlier we had to stand in long queues, but now we are spared that. This is a positive change. But, 39% respondents say they always have to wait in queue to get service. Of these 39%, most of the respondents visit the bank between 10 AM to 2 PM. This indicates that despite increase in banking hours, many respondents do not take advantage of service. Apparently, the reason behind this is that most shops open after 10 AM and cheque collection period is till 12 PM.

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 What are the various problems you face while visiting your bank? (For e.g. slow service, etc.)? This question was asked to get feedback from respondents about various problems faced by them. The responses include not only those problems that should had reduced after increase in banking hours, but also those problems which are directly related to the performance of bank. It is highly important that the services provided by bank are utmost professional and directed towards customer satisfaction. Increase in banking hours will be most profitable only when such professional environment is ensured. Following is the list of few responses: Many times printing machine at bank is not functioning. New account cannot be opened after 5 PM. What is the use of bank being open till 8 PM I deposited cash at 9.30 AM in my bank account. At 10.30 AM, I went to an ATM machine to withdraw some money. To my surprise, there was no change in my balance! The cheque clearing time is very limited. With increase in banking hours, this facility should also be extended for more hours. Sometimes the person responsible to provide a certain service is not on his desk. In such case, nobody else comes to the aid of customer. Many times employees keep chatting among themselves, not realizing that the customer wants his work to be done as soon as possible. Also, customers are waiting in the queue get irritated because of this unprofessional attitude of bank officers.
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 I had asked the bank to issue me the cheque book, almost 3 months back. I have still not received the cheque books. Besides, there has been no proper explanation from the bank officials for such negligence. There should be separate counter for services like getting pass book updated. Note: The above list may include some responses which are beyond managements control. For e.g. limited cheque clearing time

SECTION II
Do you use Internet banking services?
e-banking

50%

50%

Yes

No

As can be seen from the above chart, 50% of the respondents make use of internet banking services. It is a fact that today more and more customers are aware about use of e-banking services and this trend will continue in future. There is high probability that in near future, more and more people would prefer internet banking to traditional banking. Under such condition, twelve hour banking facility may not be of much use as customers would not visit their bank too often.

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 Do you find Internet Banking more convenient rather than visiting your bank for services?
e-convinience

30%

50% 9% 11%

Yes

No

Cant Say

NA

As mentioned earlier, customers find e-banking more convenient than visiting their bank. This is evident from the fact that of the 50% using bank. What banking services do you use which your Internet bank offers? (Please check all you are currently using)?
e-services Seeking product and rate information Calculate loan payment information 15% 2% 0% 7% 1% 1% 9% Download loan applications Download personal bank transaction activity 25% 4% Check balances on-line 36% Apply for consumer loans or credit cards online Inter-account transfers On-line bill payments
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e-

banking services, 30% find the service more convenient than visiting their

The above chart determines the different types of e-banking services that customers use. About 36% said they used it to check their balance online and 25% of them use it for inter account transfers. Again, this bolsters my point that many customers find e-banking more convenient than traditional banking for certain transactions Do you use Telephone banking services? As per the interview, 73% respondents do not use telephone banking facility. This can be attributed to the fact that there is not much awareness about the facility. Many of the respondents did not have any idea if their bank provides this facility. How frequently do you use telephone banking services per month (for example, balance inquiry, fund transfer between accounts)?
Tele-Banking Frequency

27% 38%

4% 4% Less than 1 1 to 3 times 3 to 8 times

27%

8 to 12 times

over 12 times

As can be seen from the above chart, only about 38% of respondents who use telephone banking services use it frequently. Apparently, even those using telephone banking services are not very comfortable with its usage.

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Thus, we can say that telephone banking, until now, has not posed any competition threat to traditional banking methods. Do you use Automated Teller Machine (ATM) facility of your bank?

ATM

17%

83%

Yes

No

The above chart shows that 83% of respondents use ATM facility. The 24 hour availability of the ATM service and user friendly procedure makes it popular among all customers alike. The fact that people prefer ATMs more than visiting the bank is further bolstered by the following comment of a customer: "For emergency services like cheque collection, I think it is a good proposition to keep the bank's branch open till late evening. But with the 24hour ATMs and also Internet banking, I don't feel the need for extended hours of banking at every branch. Certain branches at key commercial areas will be very helpful." Also, most customers prefer using ATM service for most of their transactions as this helps them in following ways: a) They usually dont have to wait in long queues.
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b) If it takes 5-7 minutes to withdraw cash at bank counter, it takes almost less than 2 minutes to withdraw from an ATM machine. c) This has been verified by observing 5 customers and recording time required for transactions. d) ATM machines can be operated at any time of the day. One can withdraw money even at 2 AM, in case of an emergency. How frequently do you use an ATM?

ATM Frequency

13%

3%

10%

74% Everyday Once every week Every alternate day Once/twice a month

As can be seen in the above chart, 74% respondents use ATM service at least once every week. Also, these respondents were further of the opinion that if all banking transactions could be done through ATM, they will prefer ATM rather than visiting the bank. Again, under such conditions, increase in banking hours has not had much impact on customers who use ATM facilities.

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 What are the difficulties that you face in using ATM/ Tele-banking and internet banking services? The above question was asked in order to know the limitations of ATMs, internet banking and telephone banking. Although, these facilities form an important part of banking today, their limitations ensure that customers visit their bank. This point is further bolstered by the following interesting comments made by customers. "Even though it is now possible to draw money through ATMs and purchase demand drafts through the Internet, the increased working hours can improve use of facilities like safe deposit lockers, which can be accessed only at the bank. There is a monetary limit imposed for drawing money from ATMs and higher amounts can be withdrawn only from a bank. Other nonbanking operations like insurance advisory services can be possible in the extra hours. The longer working hours are particularly beneficial to those who do not access the Internet." We had to visit our branch at 7.30 p.m to draw some bulk cash - for making some payments in a land deal the next day (more than what was permitted by the ATM). Thankfully, banks are open longer now and we didn't face a problem." Also, following is the list of few common problems faced by customers while using these services: a) ATM machine not working. b) Only up to 15000 can be withdrawn from the ATM machine in one transaction. c) Many times, while using Internet banking, either the bank site is not accessible or links are not working.
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d) Internet banking is quite complicated for new users. e) All these services are impersonal, i.e., one will only communicate by email or telephone or operate ATM machine. Those who prefer a personal service and face to face communication this banking may not work for them. f) While providers work very hard to keep their sites up and running 24/7, there is no guarantee a site will not crash. To make sure you can still carry out any banking you need make sure you know your providers customer services phone number. Any suggestions related to timings and services of your bank? Following is the list of some suggestions given by customers: a) We are happy that the bank is open for twelve hour now. This gives flexibility in visiting the bank at any time of day. Keep it up! b) Although banking time has been increased, employees behave in a typical PSU employee manner. Unless the attitude of professionalism sets in, customers will always keep complaining about bank and its services. This negative word of mouth publicity will eventually lead to many customers opting for private banks. a) Although banking hours have increased, infrastructure remains the same. There is just one printing machine for making pass book entries, and many times that too is out of order. b) There should be more counters for different kind of services and senior citizens should get proper assistance. Now after having studied the customer responses, we move on to analyse the responses of the other stakeholders- the employees.
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3.3: FINANCIAL PERFORMANCE

We have analysed the responses of various stake holders, but in order to reach proper conclusion we needed to analyse the financial performance of ICICI, Dadar branch. The twelve hour banking was implemented at the start of year 2006. Hence, the analysis has been made by comparing two years- year 2005 and 2006.

Note: All figures are in Rs. Crores.

Total expenditure:
Total Expenditure 5 4 3 2 1 0 March '05 3.457 June '05 0.839 March '06 4.198 June '06 0.869 March '07 4.628

Sep '05 Dec '05 2.01 2.888

Sep '06 Dec '06 2.135 3.136

Total Expenditure

As can be seen from the above chart, there is a consistency in trend of expenditure. The total expenditure increases in both the year after the month of June and keeps increasing till March and then falls again for next three months. Total expenditure was Rs.10.504 Crores in year 2005, while in 2006 it was Rs.10.768 Crores. This implies that there has been an increase of about 27 lakhs.
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It should be noted that many employees had pointed out that total expenditure has increased mainly as a result of electricity expenses. Hence, next we analyse the electricity expenditures. Electricity expenditure:
E le ctricity Expe ns e s 0.6 0.5 0.4 0.3 0.2 0.1 0 M arc h '05 0.081 June '05 0.124 Se p '05 De c '05 M arc h '06 0.376 June '06 0.01 Se p '06 De c '06 M arc h '07 0.489

Ele ctricity Expe ns e s

0.216 0.225

0.215 0.035

As I had mentioned before, many employees believe that the electricity expenses must have increased manifolds. They said that this was because all electric appliances in the bank were now operating for twelve hours. The electricity expenses in year 2005 were about Rs.64, 60,000 and that in year 2006 were about Rs.63, 60,000. This means that there has been reduction of Rs. 100, 000. But, it should also be noted that electricity expenses have sharply risen since December 2006 and in fact peaked as high as 50 lakhs approximately.

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 Total Deposits:
Total Deposits 90 80 70 60 50 40 30 20 10 0 March '05 68.16 June '05 Sep '05 69.357 72.236 Dec '05 72.41 March '06 72.21 June '06 Sep '06 76.01 78.459 Dec '06 72.057 March '07 47.142

Total Deposits

As can be seen from the above chart, total deposits for year 2005 were Rs.282.16 Crores and that for year 2006 were Rs.298.76 Crores. This implies there has been an increase of Rs.16.6 Crores within the first year of implementation of 8 to 8 banking. Quite a few people have opened their savings and current accounts with Dadar branch after the implementation of twelve hour banking. This may be because the banks they already had accounts with, do not provide this service. Hence, this increase in deposits may be attributed to 8 to 8 banking system, at least to certain extent. Total Income:

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The total income for year 2005 was Rs. 10.2997 Crores and in the year 2006 it was Rs 11.615 Crores. This implies an increase of about 1.5 crore. We can not attribute, with surety, this rise in income to increase in bank timings as there can be other reasons as well. In order to further understand if this rise could have been because of 8 to 8 banking, we analyse the profits of the branch. Total Profit:
Total Profit

1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Total Profit March '05 0.9882 March '06 0.9792 March '07 1.48

The twelve hour banking was introduced in the year 2006 at Dadar branch. Hence, here we compare the profits of year 2005-06 and 2006-07. As can be seen in the above chart, there has been a phenomenal increase of about Rs. 50 Lakhs in profits in the year 2006-07 as compared to previous year. Now, saying that the phenomenal jump of profit is because of increase in bank hours, may be lacking proper evidence. But again, it can be seen that there is not much difference in the profits of year 2004-05 and year 2005-06. In both these years, bank was functioning for seven hours.

3.4: LIMITAITONS OF THE STUDY

Most employees which were interviewed had a bias against increase in the working hours. This is mainly because of the usual human tendency to resist
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change.

Such

attitude

created

difficulties

in

extracting

correct

information from them. Some customers were not interested in sharing their experiences due to limitation of time and similar reasons. The results are based on the assumption that the information provided by respondents is correct and true. The lack of secondary data created difficulties in getting research help. Sometimes the customers felt conscious of the fact that they were being interviewed as they were not sure whether to reply to my queries or not. Certain information like that of total vouchers for year 2005 was not available. This created problems in estimating the impact on the performance of the Dadar branch. It has been just about one year since implementation of twelve hour banking in most branches of ICICI. This period is too short to understand what could have been the financial impact of this decision. The Balance Sheet of the ICICI, Dadar Branch does not show the exclusive values of the Advances and Loans received by the customers of the Dadar branch. The disbursement of Advances is done through Central Processing Centre which is at Dadar branch. Hence, all advances disbursed by all other ICICI branches of Mumbai are recorded in Dadar branchs Balance Sheet.

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CHAPTER 4: ICICI BANK

4.1: INTRODUCTION

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, any Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors.

STRENGHTS: 1) Online Services: ICICI Bank provides online services of all its
banking facilities. It also provides D-Mart account facilities on-line, so a person can access his account from anywhere he is

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2) Advanced Infrastructure: Branches of ICICI Bank are well

equipped with advanced technology to provide the customers with taster banking services. 3) Friendly Staff: The staffs of ICICI Bank in all branches are very friendly & help the customers in all cases.. 4) 12 hrs. Banking services: Compared to other bank ICICI bank provides long hrs of services i.e. 828 services to the customers. This service is one of its kinds & is very helpful for the customers who are in urgent need of money. 5) Other Facilities to the Customers & Employees : ICICI Bank also provides other facilities like drinking water facilities, proper sitting arrangements to the customers 6) Late night ATM services: ICICI bank provides late night ATM services to the customers. The ATM centres of ICICI bank works even after 11:00pm at night in certain branches.

WEAKNESS:
1) High Bank Service Charges: ICICI bank charges highly to customers for the services provided by them when compared to other bank & that is why it is only in the reach of higher class of society. 2) Less Credit Period: ICICI bank provides credit facilities but only up to limited period. Even when the credit period is not over it sends reminder letters to the customers which may annoy them.

OPPORTUNITIES:
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1) Bank Insurance services: The bank should also provide insurance services. That means the bank can have a tie-up with a insurance company. 2) Increase in percentage of Returns on increase: The bank should provide higher returns on deposits in comparison of the present situation. These will also up to large extent help the bank earn profits & popularity. 3) Recruit professionally guided students: Bank & Insurance is a special non-aid course where the students specialize in the functioning & services of the bank & also are knowledge about various tax policies. 4) Associate with social cause: The bank can also associate itself with social causes like providing relief aid patients, funding towards natural calamities. But this falls in the 4th quadrant so the bank should neglect it.

THREATS
1) Competition: ICICI Bank is facing tight competition locally as well as internationally. Bank like CITI Bank, HSBC, ABM, Slandered Chartered, HDFC also provide equivalent facilities like ICICI do and also ICICI do not have consistency in its international operation. 2) Net Services: ICICI Bank provides all kind of services on-line. There can be easy access to the e-mail ids of the customers through wrong people. 3) Decentralized Management: Each branch manager is given the authority of taking decisions in their respective branches 4) No Proper Facilities to Uneducated customers: ICICI Bank provides all services through electronic computerized machines. This creates problems to the less educated people.
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4.2 ICICI ADOPTS 828 SCHEDULES:

When the nationalised banks introduced extended working hours and Sunday banking, it was a mere extension of banking hours by an hour or two, to tackle the onslaught posed by the tech-savvy new generation banks. Now, ICICI Bank has decided on a two-shift, eight-to-eight work schedule. How the nationalised banks, which are yet to establish connectivity across the country, are going to counter it remains to be seen. However, for the present, ICICI Bank has decided to work between 8 a.m. and 8 p.m. The bank has initiated the process in four regions Delhi, Pune, Mumbai and Chandigarh from February 1 and later introduced it in Ahmadabad and Hyderabad Once through, as many as 420 branches, including 50 extension counters would remain open between 8 a.m. and 8 p.m. The rural branches, however, will stick to the existing work schedule. The tech-savvy bank, incidentally, has all along been advocating to its customers to take advantage of Internet banking, phone and mobile banking convenience offered by it, instead personally visiting the branch. Further, the bank has always stressed that its ATMs at strategic locations will facilitate convenience banking. The bank has in place over 1,300 ATMs to cater to the anywhere, anytime banking requirement. It is targeting at 1,600 ATMs before the end of the current fiscal.

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Despite these facilities, the bank is planning to keep its branches open two-shifts on weekdays and one-shift on Sunday. To tackle the workload, the bank is on a hectic recruitment spree. It is reliably learnt that the unions have resisted the move on extended working hours and stated that they will stick to the eight-hour schedule.

CHAPTER5: UNION BANK OF INDIA

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Union Bank of India (UBI) is one of India's largest state-run banks and is also listed on the Forbes 2000. It was inaugurated by Mahatma Gandhi. Over the years Union Bank of India has earned the reputation of being a techno-savvy Bank and is one of the front runners amongst public sector bank in the field of technology. It is one of the pioneer public sector banks, which launched Core Banking Solution in 2002. The Bank's principal activities are to provide commercial banking services which include merchant banking, direct finance, infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services. The Bank operates through 2082 branches in India. Following is profile snapshot of UBI. Companys Vision To become the Bank of first choice in our chosen areas by building beneficial and lasting relationship with customers through the process of Continuous improvement.

UBI (SWOT Analysis)

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STRENGTH:
Location of the branch.(Commercial cum Residential area ) Good Customer-Employee Relationship Mutual understanding and good rapport amongst the staff members (employees). Good rapport between the Manager and Employees. Customer Satisfaction. ATM facility made available 24 hrs. UBI, Dadar Branch is a Core Banking Branch (CBS) i.e. it is connected by net to other CBS branches.

WEAKNESSES:
Insufficient Staff in branch to carry on 8 to 8 duty. Most customers feel that there is lack of space in office premises. Due to various other tasks undertaken by bank, the branchs focus has deviated from its original tasks and thus a proper balance between both is difficult to maintain.

OPPORTUNITIES:
Tie ups with HDFC mutual funds etc. E-banking services available to the customers can help branch flourish. Personal Banking Systems including introduction of Credit Cards, Debit Cards, International Debit Cards.
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 UBI is a CASH TREE member bank. I.e. eleven banks: Bank of India, Dena Bank, Indian Bank, Indian Overseas Bank, Syndicate Bank, United Bank of India, Bank of Rajasthan, Karnataka Bank Ltd., Yes Bank, Dhanalaxmi Bank Ltd. And Union Bank of India has formed an ATM network of banks.

THREATS:
Lack of armed security (armed guards on duty only between 9 to 3.30pm). It is very risky to let customers use their Safe Deposit Lockers after 3.30 PM. Other Public Sector Banks and Private Sector Banks in the vicinity. Various strategies of Private Sectors Banks to attract customers.

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CHAPTER 6: CONCLUSION
There is no doubt that within just a few year of its implementation, 8 to 8 banking has had quite a significant impact on employees, management, income, expenditures as well as on customers of the bank. It has not only given ICICI a fair chance to compete with the other PRIVATE SECTOR BANKS but also to counter competition from private players. While many employees are not very happy because of extended hours of working, customers felt that the facility gave them flexibility in visiting the branch. Customers like office goers, housewives, pensioners, students have benefited the most because of increased banking hours. On the other hand, not much difference has been noted among shop owners and businessmen. Though many customers are happy that banking hours have increased, they want that all services should be provided. Most employees are unhappy to work for extended hours as they are not satisfied with the current compensation scheme. Although, 8 to 8 banking helps ICICI to counter competition from other banks, it faces internal competition from facilities like internet banking and telephone banking. ATM, internet banking and telephone banking provide an option to customers for not visiting their bank. A customer not visiting their bank leads to idle time and this increases frustration of employees. As far as financial performance is concerned, there has been substantial increase in the profits of ICICI. But, in order
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to attribute this increase in profits to 8 to 8 banking, we need to study other factors as well. Expenditures have definitely increased to certain extent. This is because more working hours means higher electricity and administrative expenses.

7.2: SUGGESTIONS:
Following is a list of few suggestions Young and more professional staff will help in better implementation of the twelve hour banking concept. Customers presence is most important in 8 to8 branch. While implementing 8 to8 banking, it is very important to analyse whether branch requires extended hours of working. a) In those branches where frequency of the customers visiting the branch is high and in case of branch being located in a residential cum commercial area, 8 to 8 banking should be implemented. But branches were there are less customers, 8 to 8 banking will only lead to loss due to increase in various expenses like electricity charges, telephone bills, etc. Thus 12 hours can be beneficial only to few selected branches. b) To ensure proper delivery of services, staff strength must be adequate. c) Since ATM and internet banking are made available to customers, there is no need to increase the banking hours.

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CHAPTER8: BIBILIOGRAPHY

8.1BOOKS
Modern banking in India- Sumant k. Muranjan
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Indian banking- R. K. Uppal

8.2WEB
WWW.ICICIBANK.COM WWW.GOOGLE.COM WWW.UNION BANK OF INDIA.COM

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