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Shivaji University, Kolhapur

INTRODUCTION TO THE STUDY


Retail Banking in which banking institutions execute transactions directly with customers
Typical products: savings and transaction accounts; mortgages; personal loans; debit and
credit cards, etc Working principle: Law of Large Numbers; probabilistic modeling
Critical success factors: Distribution Branch, channels Branding Unit costs cost per
account, cost per transaction Pricing Risk management .The term is generally used to
distinguish these banking services from investment banking, commercial banking or
wholesale banking. It may also be used to refer to a division of a bank dealing with retail
customers and also be termed as personal banking services.
Retail Banking encompasses retail deposits schemes, retail loans, credit
cards, deposit cards, insurance products, mutual funds, Depository services including
demat facilities. It includes various products and services forming a part of the assets as
well as the liabilities segments of bank.

Definition:
Retail banking is nothing but banking catering to the multiple requirements of
individuals relating to deposits, advances and associated services.

Objective:

To ascertain from the customers the type of bank they would prefer for operating
their accounts.

To identify the various types of services offered by bank which the customers are
presently availing.

To check the level of satisfaction about the different types of services offered by
the banks.

To identify the awareness of the retail banking system in the people and their
preferences.

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Shivaji University, Kolhapur

To give suggestions to the local branch to improve their banking services.

Importance of study
1. This study will be useful to understanding the practical significance products
and services of the bank.
2. It is important study on the retail banking products and services.
3. It is also useful to the organization to understand effectiveness of their
products and services.

Research Methodology:
A Research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the arrangement of conditions for collection
and analysis of data in a manner that aims to combine relevance to the research purpose
with economy in procedure.
The development of Research plan has the following steps:
1. Data Sources:
Two types of data were taken into consideration i.e. Primary data and Secondary data.
a)

Primary dataPrimary data is the first hand data is collected for the research in the study. Primary

data collected from direct personal interviews and investigation through questionnaire.
b)

Secondary data-

Secondary data is secondary information which is collected from secondary sources. In


this particular study. Secondary data collected from internet, books, journals, Banks
brochures, annual publications etc.
2. Research Instrument:

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Shivaji University, Kolhapur

The instruments are used for the collecting information means the primary data such as
the questionnaire, personal interview etc.
3. Sampling:
a) Sampling Unit: Survey conducted in Sangli City.
b) Sample Size: The sample consisted of 50 respondents. The sample was drawn from
walk in customers of The Saraswat Co-operative Bank Ltd. The respondents were
selected on the basis of simple random sampling.
c) Contact Methods: contacted the respondents through personal interviews.
4. Analysis of the information:
Research tools used for analysis of data are used for data analysis. i.e. Table, Graphs,
Diagrams, Tabulation, Simple average method, Ranking, Weighted average, Percentage
etc.
5. Presentation of Findings:
This was the last step of the survey.

Scope and limitations of study:


Scope:

The present study is restricted to the subject A Perception in Retail Banking


System Preference and Approach towards Retail Banking to Saraswat Cooperative Bank Ltd, Sangli.

The universe covers not the Sangli city only.

Limitations:

Many of the respondents were so busy that they hardly could give time to
complete the questionnaire and to discuss.

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Shivaji University, Kolhapur

Many respondents hesitated to express fully and truly their view.

INTRODUCTION TO THE ORGANISATION.


Company Profile:
The Bank has a very humble but a very inspiring beginning. On 14th September
1918, "The Saraswat Co-operative Banking Society" was founded. Mr. J.K.
Parulkar became

its first Chairman, Mr. N.B. Thakur, the first Vice-Chairman,

Mr. P.N. Warde, the first Secretary and Mr. Shivram Gopal Rajadhyaksha, the first
Treasurer. These were people with deep and abiding ideals, faith, vision, optimism
and entrepreneurial skills. These dedicated men in charge of the Society had a
commendable sense of service and duty imbibed in them. Even today, their
honorable founders inspire a sense of awe and respect in the Bank and amongst
the shareholders.
The Bank has the unique distinction of being a witness to history. The Bank,
which was originally founded in 1918, i.e. close on the heels of the Russian
Revolution, also witnessed as a Society and as Bank - the First World War, the
Second World War, India's freedom Movement and the glorious chapter of postindependence India. During this cataclysmic cavalcade of history, the Bank as a
financial institution and its members could not of course remain unaffected by the
economic consequences of the major events. The two wars in particular brought in
their wake, paucities of all kinds and realities and stand by its members in distress
as a solid bulwark of strength. The Founder Members and the later-day
managements of the Bank continued to demonstrate their unwavering faith in the
destiny of the common man and the co-operative movement and they encouraged
the shareholders to save despite all odds.
Thanks to these sustained and assiduous efforts over 25 years after its inception,
the Bank had gained a strong foundation in terms of its membership, resources,
assets and profits. By 1942, the Bank was fulfilling all the banking needs of its
customers.
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During the late fifties, the Bank grew from strength to strength. The Bank had
established five branches within the city of Mumbai and one each at Pune and
Belgaum. In its 50th year, the Bank chose a bee motif to symbolize the Bank's
emblem - a fitting and appropriate characteristic of a Bank that believed in hard
work, a search for all that is good, a team spirit to achieve its objectives and
selfless service to its members and customers. The Bank had grown in stature,
progressed in its social and economic objectives and produced an image of what
an ideal bank should be. Resultantly, in the year 1977-78, the Bank's gross income
crossed the Rs.3.00 crore marks for the first time.
In 1988, the Bank was conferred with "Scheduled" status by Reserve Bank of
India. The Bank is the first co-operative bank to provide Merchant Banking
services. The Bank got a permanent license to deal in foreign exchange in 1978.
Presently the Bank is having correspondent relationship in 45 countries covering
9 currencies with over 125 banks. In 1992, the Bank completed 75 years.
Platinum Jubilee Celebrations were inaugurated on 14th September, 1992 and the
Bank also crossed the business level of Rs. 700 Crores.
The beginning of the 21st century has been a giant leap forward for the Bank. The
Bank chose a path of organic/inorganic growth and our pace of growth
accelerated .The Bank's total business which was around Rs.4000 Crore in 2000
almost tripled to Rs.15295 Crore in 2007.
In the year 2008, the Bank launched a Branding Initiative. The purpose of such an
exercise was to reconfirm the thrust of the Bank on its core values, which can be
summed up as a "Sense of Belonging". The name of the Bank should always
inspire a Sense of Belonging in all its stakeholders and the Bank continues to
fulfill the changing needs and expectations of the customer with unflinching gusto
and aplomb.

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Shivaji University, Kolhapur

MISSION STATEMENT
"To emerge as one of the premier and most preferred banks in the country by
adopting the highest standards of professionalism and excellence in all the areas
of working"
MILESTONES
In the last two decades the Bank has witnessed a steady growth in business and
also taken several Strategic Business Initiatives such as undertaking Business
Process Reengineering initiative, merging seven Cooperative Banks and then
consciously nurturing them.

The Bank tied up with VISA International for

issuance of Debit Cards.


In 2011, the Bank was granted permission for All India Area of Operation by
Reserve Bank of India. The Bank has an ambitious business expansion plan in
place to have a presence in all major cities of the country, reach a business level
of Rs.50000 Crores by 2016 and Rs.100000 Crores by 2018.
The Bank has a network of 229 fully computerized branches as on 31st March,
2013 covering six states viz. Maharashtra, Gujarat, Madhya Pradesh, Karnataka,
Goa and Delhi. The Bank is providing 24-hour service through ATMs at 159
locations. As on 31st March, 2013 the Bank's business had surpassed Rs. 36000
Crores. The Bank has retained its coveted position as ZERO NET NPA Bank for
the ninth successive year.
It is a matter of immense pride for the Bank that its new Corporate Office at
Prabhadevi Mumbai has become operational. The office establishes our strong
presence in the financial capital of the country. The massive edifice in crystal
glass in the heart of Mumbai gently reminds everyone of the NumeroUno position which the Bank holds in the Cooperative Sector. The usage of state
of art technology coupled with personal ambience

to make everybody

comfortable once again reiterates the Bank's adherence to "Think Global, Act
Local". The address of our new Corporate Office is as under:
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Shivaji University, Kolhapur

"Service to the Common Man" has been the motto of Saraswat Bank for the
last 95 years. Bank in spite of its growth in size has been able to offer to the
customers the dual advantage of "Ability of Big Banks and Agility of Small
Banks"
The Bank still continues to function with the glorious tradition in public services
Besides being the largest Urban Co-operative Bank in India, Saraswat Bank has
now become the largest in Asia. Saraswat Bank has now 229 fully computerized
branches as of 31st March 2013, 15 Zonal Offices and departments located across
6 States viz. Maharashtra, Goa, Gujarat, Madhya Pradesh, Karnataka and Delhi
Saraswat Bank attributes this success to its undying spirit to serve the common
man and to the sharpening of its competitive edge by constantly upgrading
technology to match international standards. The Bank is fully computerized and
offers convenient working
Saraswat Bank has introduced a wide range of credit schemes at attractive interest
rates, which has become very popular, especially among the middle-class in view
of the easy repayment plans. Bank offers attractive interest rates on deposits and
also various add on features at very market competitive rates.

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Shivaji University, Kolhapur

Products and services of Saraswat co-operative bank:


Personal Sector:
>>>Deposit Schemes

Savings

Current Accounts

Term Deposit

>>>Retail Loans

Vastu Siddhi Housing Loan

Super-Fast Car Loan

Super-Fast Car loan - High End Car

Sajawat Loan Scheme

Saraswati Education Loan

Pravasi- Travel Loan

Gold Loan Yojana

Multi-Purpose Loan

>>>Investment & Insurance


> Insurance

Protection Plans

Childrens Plan

Retirement Plans

Savings and Investment Plans

Health Plans

> Mutual Funds

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Shivaji University, Kolhapur

>>>Demat

Individual Account

Corporate Account

NRI / FOREX Sector:


NRI Deposit

NRI Loans
Overseas (Nostro) Account

Forex Centres

Remittance Services

Money Transfer Services

Corporate Sector:

Udyogini

Micro Finance - Self Help Groups

Small & Medium Enterprises (SMEs)

Traders

Trade Finance

Services Sector:

VISA Debit Card

SMS Banking

Easy Pay

Insurance

Mutual Fund

Other Bank (NFS) Network

GOMO

Share Holders

Miscellaneous Services

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Shivaji University, Kolhapur

Company Profile of Franchise: Sangli Branch.


Name of the organization: The Saraswat co-operative Bank Limited
Address: Stand road, Shastri chowk, Sangli.
Telephone No.: 0233 -2332294
Year of establishment: 1st July 2007.
Name of Branch manager: Mr. Sanjay Vasantrao Bhosale.

Turnover 2013-14: Rs.98,60,67,872.62

The current branch of Saraswat Cooperative bank earlier

was the Annasaheb Karale

Cooperative bank. On 1stjuly 2007 Annasaheb Karale Janata co-operative 0Bank which
are situated in Sangli got merged in the SARASWAT CO-OPERATIVE BANK. Also
On 1stjuly 2008 the Maratha Bank, Jaisingpur also merged in the Saraswat co-operative
Bank at the same branch.

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Shivaji University, Kolhapur

ORGANISATION STRUCTURE
BRANCH MANAGER

DY MANAGER
DY MANAGER

JUNIOR OFFICER
JUNIOR OFFICER
JUNIOR OFFICER
JUNIOR OFFICER
JUNIOR OFFICER
JUNIOR OFFICER

OFFICE ASSISTANT
OFFICE ASSISTANT

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Shivaji University, Kolhapur

THEORETICAL BACKGROUND:
What is a Bank?
A Bank is a financial organization which accepts deposits that can be withdrawn
ondemand and also lends money to individuals and business houses that need it.
Structure of banking sector in India

Figure No.1

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Shivaji University, Kolhapur

A) Retail Banking:

Retail Banking refers to provision of banking products and services offered to


individual customers, typically for non-entrepreneurial purposes. On the liability side,
banking has invariably always been retail i.e. the banks have raised resources from a
large number of retail depositors. In that sense when we talk about retail banking, our
focus is on the asset side i.e. lending to the retail segment. Thus, on the whole, retail
banking involves offering of products both sides of the balance sheet e.g. fixed,
current / savings accounts on the liability side; and mortgages, loans (e.g., personal,
housing, auto, and educational) on the asset side. Additionally, retail banking also
involves offering of credit cards, depository services and other para-banking products
and services viz. insurance products, capital market products etc. to individuals. Thus,
retail banking services broadly corresponds to the banking services providing in the
intermediate phase of evolution of banking. It is contextual to mention here that real
economies in most of the developing countries have matured enough to demand
products and services offered not only during the intermediate phase but also during
the advanced phase and hence retail banking, embracing all products and services
relating to consumption and speculative function of the economy, has become
relevant in these jurisdictions.

Retail banking is the most visible face of banking for the general public. These
services are typically offered at the physical brick-and-mortar branches and at the
ubiquitous ATMs. The delivery channel for retail banking is now no longer restricted
to branches and ATMs but also spans telephone and the fastest growing channel i.e.
internet. In fact, some retail banks in the west operate solely via the internet and do
not have facilities to serve customers at physical outlets. Generally, however, the
banks that focus purely on retail clientele are relatively few and retail banking
activities are generally conducted by separate divisions within banks.

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Typically, retail banking services begin with a target clientele which is the common
masses and it slowly graduates through a stage which can be called as class retail
banking. The mass retail banking is the stage in which the bank provides
standardized banking products and services to its customers. In this phase the banks
attempt to build a sufficiently broad customer base which can serve as a stable source
of funding. The class retail banking on the other hand, is the stage in which the bank
offers customized products and services targeted at a niche customer segment, the
high net worth individuals. Retail banking focused solely at a niche customer segment
may also be termed as private banking.

A graphical representation of the positioning of mass retail banking vis--vis other


segments of banking is as under:

This is not really confined only to emerging markets but is a global phenomenon. The
confusion primary emanates from whether the banking services offered for
entrepreneurial purposes should be considered as part of retail banking or not. Many
of the banks include the banking services extended to small borrowers and SME
clients also as part of mass retail banking. In my view, the retail banking in its most
basic form is only about servicing the individuals (mostly the masses) for nonentrepreneurial purposes. The retail banking over a period of time can make a
transition to class banking and banking for entrepreneurial purposes for the
individuals, for agriculture or for small businesses (SMEs). This is particularly so as
many aspects of retail banking in terms of delivery of services (large number of small
value transactions) and risk management practices (scoring model, model based
capital assessment) are also applicable to small businesses run by individual
entrepreneurs

B) HISTORY OF RETAIL BANKING:


Basic banking services such as deposits for safe keeping, saving, or borrowing for
personal or business use is as old as human civilization. Organized banking services
started in 15th and 16 century Europe, when banks began opening branches in
commercial areas of large cities. By the last quarter of the 19th century, banks were
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consolidating their branch networks so that they could operate in a more integrated
manner. Mergers and acquisitions allowed banks to grow quickly but, in the absence
initially of information and communication technologies, their services remained largely
local.
The policy of opening new branches continued throughout the twentieth century as a
means of business expansion, but services were limited to the provision of routine
operations such as deposits, withdrawals and basic loan services. To cope with the
increasing volume of work, and to achieve consistency across branch networks, banks
started to standardize their record keeping and accounting practices. This also helped
them to effectively connect branches. Standard record keeping also resulted in the
appearance of new professions such as bank clerks. The arrival of the typewriter in the
late nineteenth century helped to standardize internal/external communications, and other
tools such as the telegraph made communications between branches and headquarters a
daily routine.

C) STRUCTURE OF RETAIL BANKING


As mentioned in the previous section, the traditional banking business model is based on
physical decentralization, with branches scattered around populated areas, providing a
range of services. The rationale behind such branch investment is the need to distribute
banking services, encourage usage, and maintain contact with customers. Such a structure
allows these institutions to provide a large range of products and services, but all at the
high costs associated with premises and staff. In the past, a large branch network was
source of competitive advantage, as it gave customers easier geographic access and the
reassurance that the bank has substantial resources and hence offers security for their
savings (Jayewardene& Foley, 2000) Banks needed large investments to develop and
maintain such network, so it worked as an entry barrier for new entrants and retail
banking remained mostly the preserve of a few large banks, especially in Europe. One
notable exception is the US, where there are more than 8000 community banks and

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nearly 9000 member-owned banking institutions regulated by the National Credit Union
Administration
During the last decade or so, new players such Internet only banks as well as other
organizations such as supermarkets have also started to offer retail financial services.
While large banks still hold the major market share, these other organizations are
making significant inroads. The importance of services distribution channels is also
changing at a rapid pace. In the past the main source of retail banking services
distribution was 'brick and mortar' branches. With the arrival of other channels such as
telephone banking and e-banking, the number of branches is steadily declining, a trend
also fuelled by mergers and takeovers. Now, most banks choose to deliver their products
and services through multiple channels, including the internet and telephone.
The retail banking space proved to be an oasis of relative calm amidst the tumult
caused by the Financial Tsunami that the world continues to grapple with even today.
The customer deposit garnered by retail banking represents an extremely important
source of stable funding for most banks. In this context, it is essential for the banks to
keep pushing the frontiers of innovation and experimentation in the retail banking space
to survive and also to remain relevant. One of the most essential elements of a strong
customer bank relationship is the banks understanding of customer needs and
preferences. However, with the massive increase in their size and their customer base,
the banks have slowly drifted away from understanding their customers needs and
preferences closely. Further, the proliferation of alternate delivery channels has
necessitated that banks build their presence across all channels (Omni-channel presence)
to offer their services to their customers. As the banks cant probably dictate that their
customers chose specific channel, the challenges for the banks is to design
products/systems which are channel/segment agnostic.
While retail banking offers phenomenal opportunities for growth, the
challenges are equally daunting. The exacting regulatory requirements on the consumer
protection front, risks from a slowing global economy and increasing customer
expectations mean that banks must innovate to grow. How far the mass retail banking of
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the future would be able to fulfill its socio-economic objectives would in a large
measure depend upon the willingness of the banks to innovate and reform their business
processes and structures for this cause. It is in the banks own interest to be alive to the
customers interests; else they might have to face stiff regulatory sanctions. Post crisis,
several jurisdictions in the developed world have seen public demands for ethical
pricing. In this Facebook and Twitter age, the banks cannot remain oblivious to the
power of the social media which wields enough clout to forcibly reform the outliers
through negative publicity. Only such retail banks, who inculcate ability to churn out
innovative and differentiated products by harnessing cutting-edge technology, greatly
improve their productivity and efficiency, bring a fair, transparent and nondiscriminatory pricing and demonstrate a commitment towards fair treatment to their
customers, would be able to survive and add value to the society Retail loans can be
risky when individuals lack purchasing power.

D) Why Banks focus on retail Business:


Financial Disintermediation
Traditionally, banks have been catering to demands of economic developments; finance
for manufacturing activities had a greater priority. Reliance of commercial banks was on
blue-chip companies for development of funds.
A scenario has emerged wherein there is a lack of demand for credit from large
corporate, primarily due to two reasons:

Near demise of working capital requirements due to enhancement in activities


like productivity and increased sales realization.

Corporate have their own avenues, e.g. tapping public deposits and issuance of
shares and debentures.

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Emerging issues in Handling Retail Banking:


Knowing the customer:
A concept which is easier said than practiced. Each branch should set up data warehouse
wherein meaningful data on customers, their preference, spending patterns, etc. can be
mined.
Technology Issues:
Retail banking calls for huge investments in technology e.g. providing anytime, anywhere
convenience to vast number of customers and delivery channels through asynchronous
transfer modes (ATMs), which requires a huge investment by the banks.
Product innovation:
All new products may not become successful. Products should be introduced to create
value, not amusement. The days of selling products on the shelves are gone in the
banking sector.
Pricing of products:
The banking sector is witnessing a pricing war with each bank wanting to have a larger
slice of the market share. The much needed transparency in pricing is also missing with
hidden charges. For example, minimum amount due and total amount due in the credit
card application form and processing charges are not advertised.
Advantages of retail banking system.
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Retail banking is a concept which is relatively new and all banks are giving thrust to
retail banking, it refers to providing banking services to individual customers and focus is
on small ticket transactions rather than big ticket transactions. Retail banking has many
advantages, lets look at some of them

The first and foremost advantage of retail banking is that it increases the overall
business of the banks and also helps in improving the brand image because a
customer is more likely to remember a brand when he or she uses it himself or
herself rather than just seeing it in newspapers or television advertisements. So for
example in banking if you ask a normal individual about name of bank which has
retail operations then he or she will quickly recognize it but if you ask the same
individual about some big investment bank dealing with corporate clients having
operations in many countries chances are individual would not have even heard
the name of that bank because he or she has never dealt with them.

Since in retail banking the ticket size of loan is smaller and if borrower or group
of borrowers becomes insolvent then it does not put that much strain on the bank
balance sheet as opposed to some big corporate going bankrupt because the ticket
size of loan is quite high in case of corporate loans. In simple words one can say
that retail banking gives the advantage of diversification to the bank.

Cost of deposit of funds in case of retail banking is much lower as compared to


wholesale banking because retail customers unlike corporate customers do not
bargain for rate of interest on their fixed deposits as they do not have large sums
of money and hence they are price takers rather than price makers.

Brand loyalty in case of retail customers is higher as compared to large companies


or high net worth individuals because normal individuals want better customer
service and safety of their funds and if bank is able to provide them both then
chances are that they will not switch the bank and will continue be loyal
customers of bank for many years.

It is easy to sell third party products like insurance, mutual fund and provide other
non-fund based services to retail customers and therefore improve the bottom line

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of the banks without any credit risks which is there if bank depends only on loans
as their income and that is the reason why many banks today are focusing more
on non-fund based portfolio rather than fund based portfolio

Data analysis and interpretation is the process which is based on the


collected data. With the help of primary data by filling the questionnaire of
50 respondents the interpretation performed.

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DATA ANALYSIS AND INTERPRETATION


Q) 1 Personal information:
a) Age of respondents:
Table No. 1.a
Age group in years
No.of respondents

18-25
17

26-35
15

36-60
14

60+
4

Chart No. 1.a

Age of respondents
8%
34%

28%

18-25
26-35
36-60
60+

30%

Interpretation:
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There are highest numbers of users of retail banking system in the age group of
18-25.

The age group of 60 and above years old were started to use retail banking
system.
Retail banking system is the banking concept which also includes e-banking
facility.

b) Gender Factor:
Table No 1.b
Gender
No.of respondents.

Male
42

Female
8

Chart No.1.b

Gender factor.
16%
Gender
Male
Female
84%

Interpretation:

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The females are very less in number than men as the user of retail banking
system.

But, it is a good sign of Indian economy as well as the social aspects that women are
economically independent. And also aware about retail banking system.

c) Education of respondents:
Table No. 1.c
Education

Under

Graduatio

Post-

graduation

graduation

10

36

Professional degree

No.of respondents

Chart No. 1.c

Education level of respondents


Under graduation

Graduation

Post graduation

Professional degree

4% 4% 20%

72%

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Interpretation:

Most of the user of retail banking system completed their graduation.

Under graduation user of retail banking system are slightly higher than post
graduate and professional degree persons.

The literacy plays an important role for using retail banking system but also customers
who are less educated are also users of retail banking system and understand its
functions.

d) Occupation of respondents:
Table No. 1.d
Occupation

Self employed

Government service

Private service

Any other

No.of respondents

17

20

10

Chart No. 1.d


25
20
15
10
No.of respondents

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ot
he
r
An
y

se
rv
ic
e

Pr
iv
at
e

er
vi
ce
en
ts

G
ov
er
nm

Se
lf
em

pl
oy
ed

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Interpretation:

Most of the users of retail banking system are from private sector.

Self-employed users are the next.

Less users of retail banking system are from government employees.

Some students and retired persons too came in the survey.

The government employees have their salary account in PSU banks. All their banking
transactions are handled from this account. Other customers are attracted towards the
retail banking system because of its number of benefits.
e) Annual income of respondents:
Table No.1.e
Annual income in Rs

Below 1lakh

1 lakh to 4

4 lakh to 8

lakh

lakh

17

12

8 lakh and above

No. of respondents.
14

Chart No. 1.e

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Shivaji University, Kolhapur

Annual income of respondents

ab
ov
e

la
kh
8

la
kh

la
kh

an
d

to

4
to
la
kh
1

Be
lo
w

1l
ak
h

la
kh

18
16
14
12
10
8
6
4
2
0

Interpretation:

The user who has annual income 1 lakh 4 lakhs are large in numbers.

We can see almost all income groups use retail banking system.

As seen in the graph there are more users having income below1 lakh.

There are more opportunities to attract other income group people towards retail banking
system.

2) Which type of bank you prefer for operating your account?


Table no. 2
Co-operative

commercial

Both type of

Type of bank

bank

bank

bank.

No.of respondents

40

10

Chart No. 2

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60
50
40
30

No.of respondents

20
10
0
Co-operative bank

commercial bank

Interpretation:

Most of the respondents prefer co-operative bank for banking operations.

Less people prefer commercial bank for banking operations.

From the above graph it is seen that from total number of respondents, large number of
people prefer co-operative bank over commercial bank.

3) Are you aware of all products and services under retail banking system?
Table No.3
Awareness

Yes

No

No. of respondents

39

11

Chart No.3

A.G.I.M.S. Sangli

Page 27

Shivaji University, Kolhapur

Awareness of retail banking.


40
35
30
25
20
15
10
5
0

No.of respondents

Yes

No

Interpretation:

Most of the respondents are aware about the all products and services of retail
banking system.

Fewer respondents are unaware about all products and service of retail banking
system.

In the aspect of awareness of products and services of retail banking system, from the
survey it is seen that some respondents are aware of retail banking system but are
unaware of all products and services of retail banking system.

4) From which type of services you are currently using from retail banking system?
Table No. 4
NRI
Type of services
No. of respondents

Personal banking
35

Chart No.4
A.G.I.M.S. Sangli

Page 28

services
0

Corporate banking
15

Shivaji University, Kolhapur


Personal banking

NRI services

Corporate banking

30%

70%

Interpretation:

Most of respondents use personal banking service from retail banking system.
Such as mobile Banking and deposit schemes.

As compare to personal banking service there is less number of users of corporate


banking system.

There are no respondents who use the NRI banking service from retail banking
system. In such situation it requires more efforts to attract people towards various
services and products of retail banking system to get more deposits from NRIs
and corporate sector.

5) Which type of products and services you use from personal sector of retail banking?
Table No. 5

Type of products and services


Deposit schemes
Retail loans
Investment & insurance
Mutual fund
A.G.I.M.S. Sangli

No. of respondents.
20
15
10
3

Page 29

Shivaji University, Kolhapur

DEMAT Account
Mobile banking
Any other services

1
37
34

Chart No. 5

se
rv
ic
es
An
y

ot
he
r

Ac
co
un
t
D
EM
AT

en
t&
In
ve
st
m

D
ep
os

it
s

ch
em

es

in
su
ra
nc
e

40
35
30
25
20
15
10
5
0

No. of respondents.

Interpretation:

Most of respondents use personal banking service from retail banking system.

As compare to personal banking service there is less number of users of corporate


banking system.

There are no respondents who use the NRI banking service from retail banking
system.

A.G.I.M.S. Sangli

Page 30

Shivaji University, Kolhapur

In such situation it requires more efforts to attract people towards various services and
products of retail banking system to get more deposits from NRIs and corporate sector. In
other services, nowadays every bank provides the facility of ATM cards, internet banking
and easy pay to pay the bills.
.

6) In deposit schemes which type of account you use to make your deposit?
Table No. 6
Type of account
Saving account
Current account
Term deposit account

A.G.I.M.S. Sangli

No. of respondents
29
7
26

Page 31

Shivaji University, Kolhapur

Chart No. 6

User of deposit schemes


Saving account

Current account

42%

Term deposit account

47%

11%

Interpretation:

Most of the respondents have their saving accounts for deposit purpose.

Next are the respondents having term deposit account for deposit purpose.

Fewer numbers of persons having current accounts for deposit purpose.

From above chart it is seen that there is a wide scope for savings account schemes. This is
very effective way for low income people to save their income/money in this type of
account.
7) In which type of saving accounts you make deposit?
Table No. 7
Type of account

No. of respondents

Regular saving account

22

akshay salary account

CUBS account for kids

Suvidha saving account

A.G.I.M.S. Sangli

Page 32

Shivaji University, Kolhapur

Campus account

Janhit account for any individual or jointly.

Chart No. 7

User of saving account schemes

ac
co
un
t
pu
s
Ca
m

ac
co
un
tf
or
ki
ds

BS
CU

Re
gu
la
rs

av
in
g

ac
co
un
t

25
20
15
10
5
0

No. of respondents

Interpretation:

While making saving, most of the people use Regular saving account from saving
account scheme.

Next preferences for Akshay salary account, CUBS account for kids, Campus
account for college students and janhit account for individually and jointly.

A.G.I.M.S. Sangli

Page 33

Shivaji University, Kolhapur

There are no customers who respondents who have suvidha saving account which
is a zero balance account type.

8) Which scheme of term deposit you use?


Table No. 8
Scheme
Fixed deposit
Recurring deposit

A.G.I.M.S. Sangli

No.of respondents
19
5

Page 34

Shivaji University, Kolhapur

Madhukar tax saving


account

Chart No. 8

Term depositors
20
18
16
14
12
10
8
6
4
2
0

M
ad
hu
ka
r

ta
x

sa
vi
ng

Fix
ed

de
po
s

it

ac
co
un
t

No.of respondents

Interpretation:

Most of the people prefer fixed deposit scheme for term deposit purpose.

Next preference is for recurring deposit scheme for term deposit purpose..

Very low response is occurs for madhukar tax saving deposit scheme.

The bank has always attracted the people of all income groups when it comes for term
deposit schemes. It is one of the most preferred non- marketable modes of investment.
9) While making deposits which factor will you prefer?
Table No. 9
Factors
High Interest rate
Low risk
A.G.I.M.S. Sangli

Highly preferred
4
4

Preferred
11
6

Page 35

Low preferred
1
7

Shivaji University, Kolhapur

Trust
Good returns

16
9

2
8

0
1

Chart No. 9
16
14
12
10
8
6

Highly preferred

Preferred

Low preferred
re
tu
rn
s

Tr
us
t

ris
k
Lo
w

G
oo
d

H
ig
h

In
te
re
s

tr
at
e

Interpretation:

This analysis shows that trust on banking system is most preferred factor as
compare to other factors like high interest rate, low risk and good returns on
deposits by the customers while make deposits.

A.G.I.M.S. Sangli

Page 36

Shivaji University, Kolhapur

Also high interest rate, low risk, good returns are also preferable factors by the
customers for making deposits.

No any customer initiates to make deposit in bank without trust on banks


prosperity and system.

While make deposits people usually prefers rate of interest, low risk, and trust on bank
and good returns on deposits.

10) Which type of loan you take from this bank?


Table No. 10

A.G.I.M.S. Sangli

Page 37

Shivaji University, Kolhapur

Type of loan

No. of respondents

Vastu siddhi housing loan


superfast car loan

10
6

Sajawat loan for house repairs and renovation

Sarswati Education loan


Pravasi-travel loan
Gold loan
Multipurpose loan

0
0
0
7

Chart No. 10

Retail loans

i-t
ra
ve
ll
oa
M
n
ul
tip
ur
po
se
lo
an

Pr
av
as

re
no
va
tio
n

an
d

re
pa
irs
e

fo
rh
ou
s

No. of respondents

sa
ja
wa
tl
oa
n

va
st
u

si
dd
hi

ho
us
in
g

lo
an

10
8
6
4
2
0

Interpretation:

Most of the people take vastu siddhi housing loan from retail loan scheme.

Next preference of retail loan is for multipurpose loan scheme, then for

A.G.I.M.S. Sangli

Page 38

Shivaji University, Kolhapur

Superfast car loan and sajawat loan for house repairs and renovation.

There is no response for saraswati education loan, Pravasi travel loan and
gold loan.
It is seen that multipurpose loan has demand after the home loan. The

interest rate for loans and repayment facilities are attract the more customers. The
customers are not aware about the education loan, pravasi travel loan, and gold loan.

11) How much percentage of your loan you are repaid?


Table No. 11
A.G.I.M.S. Sangli

Page 39

Shivaji University, Kolhapur

Percentage
0% to 25%
26% to 50%
51% to 75%
76% to 100%

No.of respondents
7
9
5
3

Chart No. 11

Repay of loan
0% to 25%

26% to 50%

51% to 75%

13%

76% to 100%

29%

21%

38%

Interpretation:

Most of the borrowers repay their loan to the bank at 26% to 50%.

Next is 0% to 25% and after that 51% to 75%.

Very less number of borrowers repays their loan to bank at 76% to 100%.

From the graph it is seen that, Bank have to take more efforts on collecting the loan
amount as early as possible.
12) Which plan you have chosen for insurance?
Table no. 12

A.G.I.M.S. Sangli

Page 40

Shivaji University, Kolhapur

Plan
Protection plan
Children's plan
Retirement plan
Investment plan
Health plan

No.of respondents
3
1
0
5
1

Chart No. 12

Plans of Insurance
Protection plan

Children's plan

Investment plan

Health plan

10%

50%

Retirement plan

30%

10%

Interpretation:

Most of the respondents for insurance policy have Investment plan.

Next preference is for protection plan, next is Childrens plan and health plan.

There is no response found for Retirement plan of insurance.

Insurance is the best way to protect from uncertain risks. And also now a dayspeople are
preferring insurance policy for the investment purpose.

13) Do you pay your premium of insurance regularly?

Table No. 13
A.G.I.M.S. Sangli

Page 41

Shivaji University, Kolhapur

Payment of premium
Yes
No

No. of respondents
9
1

Chart No. 13

Payment of premium
Yes

No

10%

90%

Interpretation:

Most of the insurance holder pays premium of insurance policy regularly.

Very less respondents does not pay premium regularly.

It is very good sign for banks point of view that policy holders are paying their premium
of insurance policy regularly.

14) Are you investing in mutual fund?


Table No. 14

A.G.I.M.S. Sangli

Page 42

Shivaji University, Kolhapur

Opinion
Yes
No

No. of respondents.
3
47

Chart No. 14

Investment in mutual fund


50
45
40
35
30
25
20
15
10
5
0

No. of respondents.

Yes

No

Interpretation:

Very few number of respondent investing in mutual fund through the bank.

High number of respondents does not mutual fund investment facility through the
bank.

Bank has to give more efforts to attract people towards mutual fund investment through
the bank. After investments in bank investors prefer the mutual fund sector for good
returns.

15) Are you satisfied with demat account service?


Table No. 15
A.G.I.M.S. Sangli

Page 43

Shivaji University, Kolhapur

Opinion
Yes
No

No. of respondents.
1
0

Chart No. 15

1
0.9
0.8
0.7
0.6
No. of respondents.

0.5
0.4
0.3
0.2
0.1
0
Yes

No

Interpretation:

There is only one Demat account holder.

It is seen that there is only one respondent is accurse in survey who have Demat account.
And also he is satisfied with Demat account facility.
It is necessary for the bank to attract more customers towards Demat account facility to
make them aware to transact their shares operations through electronic form.

16) Which type of Demat account you have?

Table No. 16
A.G.I.M.S. Sangli

Page 44

Shivaji University, Kolhapur

Type of account
Individual account
Corporate account

No.of respondents
1
0

Chart No. 16

Types of demat account


1
0.8
0.6
0.4
0.2
0
ac
co
un
t
Co
rp
ot
at
e

In
di
vi
du
al

ac
co
un
t

No.of respondents

Interpretation:

As per the survey there is only one Demat account holder who has individual
account of Demat.

There is customer who has corporate Account of Demat.

It is not good sign that is unawareness in the people about Demat account system
In which the operations of shares of any investor customer through this account facility.
17) Which type of NRI services you usually use?
Table No. 17
NRI Services
A.G.I.M.S. Sangli

No. of respondents
Page 45

Shivaji University, Kolhapur

NRI Deposit
NRI loans
Remittance

0
0

services

Chart No. 17

NRI services

itt
en
ce

se
rv
ic
es

No. of respondents

Re
m

RI
D
ep
os
it

1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Interpretation:

It is seen that there is no NRI customer who have NRI Deposits in the bank.

There is no NRI customer who takes NRI loans from the bank.

A.G.I.M.S. Sangli

Page 46

Shivaji University, Kolhapur

There is no NRI customer who uses remittance services.

There is no NRI customer of the bank.

For achieving the economic growth of India there is need of increasing foreign reserves
by accepting NRI deposits and giving loans to NRI so that bank have to make more
attractive policies to attracting NRI customers towards the Indian bank.

18) Which type of corporate sector related services you take?


Table No. 18

A.G.I.M.S. Sangli

Page 47

Shivaji University, Kolhapur

Type of services
Udyogini
Micro finance self-help

No.of respondents
0

group
Small-medium

Enterprise (SMEs)
Traders
Trade finance

2
9
0

Chart No. 18

User of corporate service


9
8
7
6
5
4
3
2
1
0
fn
an
ce
Tr
ad
e

Sm

al
l-m

ed
iu
m

En
te
rp
ris

(S
M
Es
)

dy
og
in
i

No.of respondents

Interpretation:

Most of the user takes corporate related service of traders.

Very less people use services related to the small medium enterprises.

A.G.I.M.S. Sangli

Page 48

Shivaji University, Kolhapur

There is no respondent found for Udyogini, Micro finance self-help group and
trade finance during the survey.

For achieving industrial growth, bank have to give more attention on corporate related
products and services, and make people aware about products and services of corporate
sector of retail banking system.

19) Which type of other corporate service you take from corporate service?
Table No. 19
A.G.I.M.S. Sangli

Page 49

Shivaji University, Kolhapur

Type of service
Working capital
Corporate loan
Term loan
Export financing-Pre

No.of respondents
2
5
4

and post shipment.


Import finance
Bank Guarantee
Bill discounting
Letter of credit
Property loan
Rental loan

0
0
0
0
0
1
0

Chart No. 19

No.of respondents

lo
an
Re
nt
al

po
st

sh
ip
m

en
t.
Bi
ll
di
sc
ou
nt
in
g

No.of respondents

Ex
po
rt
fn
an
ci
ng
-P
re

an
d

W
or
ki
ng

ca
pi
ta
l

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

Interpretation:

Most of the respondents take corporate loan from corporate sector related
products and services.

A.G.I.M.S. Sangli

Page 50

Shivaji University, Kolhapur

Next preferable corporate product taken by the customers is term loan, then
working capital and next is property loan.

Most of the customers are unaware about the Export Financing, Import finance,
Bank Guarantee, Bill discounting, letter of credit, rental loan etc. Products of the
bank.

Retail banking system provides more beneficial services and products to the growth of
corporate sector.

20) Which type of services you usually use from Retail banking system?
Table No. 20

A.G.I.M.S. Sangli

Page 51

Shivaji University, Kolhapur

Type of services

No.of respondents

VISA Debit card or ATM card


SMS banking
Easy pay
Mobile banking
Internet banking
Mutual fund
Demat account faculty

13
19
3
37
3
3
1

Chart No. 20

User of retail banking services


1%
4%4%

16%

24%
47%

VISA Debit card or


ATM card

SMS banking

Easy pay

Mobile banking

Internate banking

Mutual fund

Demat account
facalty

4%

Interpretation:

Most of the people use mobile banking service from retail banking system.

Next SMS banking, VISA debit card or ATM card facility, easy pay, Internet
banking.

A.G.I.M.S. Sangli

Page 52

Shivaji University, Kolhapur

Mutual fund facility etc. services preferred by the people.

Very less people use Demat account facility.

Bank have to give more efforts for people make know about the retail banking services.
Time savings facilities which are widely used.

21) Are you satisfied with products and services of bank?


Table No. 21

A.G.I.M.S. Sangli

Page 53

Shivaji University, Kolhapur

Opinion
Yes
No

No.of respondents
49
1
Chart No. 21

Satisfaction level of customers


Yes

No

2%

98%

Interpretation:

Large numbers of people are satisfied with the products and services of the bank.

Very less number of people does not satisfied with products and services of bank.

Retail Banking is recent but most useful and time saving system in doing banking
operations. So that, most of the respondents are satisfied with retail banking system.

22) Do you think that there is any need of improvement in Retail banking system of the
bank?

Table No. 22
A.G.I.M.S. Sangli

Page 54

Shivaji University, Kolhapur

Need
Yes
No

No.of respondents
11
39

Chart No. 22

Need of improvement.
40
35
30

No.of respondents

25
20
15
10
5
0
Yes

No

Interpretation:

Very large numbers of respondents think that there is no need of improvement in


retail banking system.

Few respondents think that there is need of further improvement in retail banking
system.

From the survey it is observed that most of the people satisfied with products and
services of retail banking system rather some of them wants further improvement in its
operations.
23) If yes, give ratings on following basis,
Table No. 23
Factors
A.G.I.M.S. Sangli

Improved

Highly Improved
Page 55

Not much Improved

Shivaji University, Kolhapur

Security
Speed of Process

5
6

2
2

3
2

User friendly language


Less documentation
Internet banking
Mobile banking
Debit card/ATM card
Retail loan
Demat account facility

4
6
5
6
8
4
0

5
1
1
1
1
3
0

1
0
2
2
0
1
1

Chart No. 23

Improved
Highly Improved
Not much Improved
In
te
rn
et
ba
D
nk
eb
in
it
g
ca
rd
/A
D
TM
em
at
ca
rd
ac
co
un
tf
ac
ilit
y

Se
cu
rit
y

8
7
6
5
4
3
2
1
0

Interpretation:

Most of the respondents think that retail banking gives security banking
transactions but also some of the respondent things there is more need of security
in this type of banking system.

Speed of process of banking operations is highly improved.

A.G.I.M.S. Sangli

Page 56

Shivaji University, Kolhapur

User friendly language is highly improved in retail banking system.

Most of respondents are accepted that retail banking system helps in minimizing
documentation while doing banking operations.

Internet banking facility is also improved in this retail banking system. But some
of the respondent says it is not highly improved service due to unawareness of its
technical use.

Most of the respondent thinks that mobile banking facility is highly improved. By
taking banks service application on their smartphones.

Debit card or ATM card facility is highly improved; there is no need of further
improvement.

Most of the respondents agree that retail loan scheme is much improved. But also
some of the respondents think that there is need of improvement.

Demat account facility is not much improved.

24) Do you think that Retail banking system helps you to make easy and fast banking
operations?
Table No. 24

A.G.I.M.S. Sangli

Page 57

Shivaji University, Kolhapur

Opinion
Yes
No

No. of respondents
49
1

Chart No. 24
Yes

No

2%

98%

Interpretation:

Most of the people think that retail banking system is very easy and fast process.

Very less people think that retail banking system is not easy and fast process.

It is very good sign that most of the people appreciate the benefits retail banking system.

25) How important are the following benefits to you being a user of retail banking
system?
Table No. 25
Benefits
A.G.I.M.S. Sangli

Very Important

Partially

Page 58

Low

Shivaji University, Kolhapur

Easy to operate
Fast process
Low risk
Tranceperancy in

25
20
27

Important
19
17
9

Importance.
1
4
7

banking system.

34

Chart No. 25

Very High
Partially High
low

Tr
an
ce
pe
ra
nc
y

in

ba
nk
in
g

sy
st
em

ris
k
Lo
w

s
pr
oc
es
Fa
st

Ea
sy

to

op
ar
at
e

35
30
25
20
15
10
5
0

Interpretation:

Almost all the customers using retail banking system due to the benefits such as
Easy to operate, Fast process, Low risk, tranceperancy in banking system.

Retail banking system is widespread concept and practice for operating banking
transactions by providing such benefits to the customers.

FINDINGS AND SUGGESTIONS:


FINDINGS:

A.G.I.M.S. Sangli

Page 59

Shivaji University, Kolhapur

Senior citizens, women, less educated people are also taking initiative to avail retail
banking services for their banking transactions. These customers are getting aware
of such services which is observed from the survey.(Table No.1)

Most of the people prefer co-operative bank for their savings as well as opting loan
and other facilities. (Table No.2)

Many of the customers are aware about all the products and services of retail
banking system but it seen most of them are only aware about it but they do not use
those products and services.( Table No. 3)

Most of the user of retail banking system are using the products and services of
Retail banking system for personal and corporate purpose but there is not a single
NRI respondent found in the survey.(Table No.4)

Almost all the customers are using products and services of retail banking system
except NRI/ Forex services. (Table No.5)

There is large scope for saving accounts than other schemes of deposit.(Table No.6)

While making deposit customer give more preference to the trust factor and good
returns on investment.( Table No. 9)

Housing loan is most demanded loan by the customers.( Table No.10)

Most of the borrower repay their loan to the bank about 50%.(Table No. 11)

Most of the insurancepolicy holders make insurance as an investment purpose.


(Table No.12)

Many of the customers are unaware about the Demat account facility.( Table No.15)

In corporate sector, corporate loan taken by more customers. (Table No. 19)

Most of the respondents are using retail banking products and services and also they
are satisfied with retail banking system.( Table No.20,21)

A.G.I.M.S. Sangli

Page 60

Shivaji University, Kolhapur

People also want more improvement in retail banking transaction system.


(Table No.22)

Retail banking system gives more benefits to the customers as easy to operate, fast
or time saving banking process, low risk, and tranceperancy in banking operations
etc.( Table No. 24, 25)

SUGGESTIONS:

Retail banking system gives more benefits to the customers so that people must
have to pay attention on awareness of retail banking system.

A.G.I.M.S. Sangli

Page 61

Shivaji University, Kolhapur

Most of the people are not aware about all the products and services of retail
banking system for that purpose bank have to give more efforts to make people
aware about retail banking system by the way of promotions or advertisement
media.

Bank has to teach people about the benefits of retail banking system to their
customers.

Bank has to give extra efforts to attract NRI customers towards the bank which is
very helpful for the prosperity of bank as well as to the countrys economy.

Bank have to make people aware about each and every products and services of
retail banking system to making banking operation easily and also fast.

Bank can create saving account scheme especially for farmers with good features.

Various schemes relayed to investment can be introduced to attract the customers.

CONCLUSION.

A.G.I.M.S. Sangli

Page 62

Shivaji University, Kolhapur

Basic banking services such as deposits for safe keeping, saving, or borrowing for
personal or business use is as old as human civilization, but after that, recent system in
banking operations is arrived is called as Retail Banking System.
Retail banking system is very beneficial banking system not only for banks but also
for the customers. Most of the people prefer co-operative bank to make their banking
transactions. In retail banking system almost all the banking operations are happened
through the internet network and recent developed and computerized technology.
Retail banking system gives satisfaction to its user but customers wants more security
for their online or internet banking operations.
So, Retail banking system is beneficial banking system of these highly developing
and rapid changeable banking trends to survive in this competitive era of banking sector.

A.G.I.M.S. Sangli

Page 63