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Summer Internship Report

On

Current Account Facility of
Central Bank of India

By
GAURAV SINGH
A0101909427
MBA Class of 2011

Under the Supervision of
Dr. Akhil Swami
Professor
Department of Finance

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOL
AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2010

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AMITY UNIVERSITY UTTAR PRADESH
AMITY BUSINESS SCHOOL

DECLARATION

I, Gaurav Singh student of Masters of Business Administration from Amity Business School,
Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on
“Facility of Central Bank of India” as part of the course requirement.

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

Date: 16/03/09 Gaurav Singh

Enroll. No: A0101909427

Place: Noida MBA Class of 2011

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AMITY UNIVERSITY UTTAR PRADESH

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AMITY BUSINESS SCHOOL

CERTIFICATE

I hereby certify that Gaurav Singh student of Masters of Business Administration at Amity
Business School, Amity University Uttar Pradesh has completed Summer Internship on “Current
Account Facility of Central Bank of India”, under my guidance.

Dr. Akhil Swami

(Professor)

Department of Finance

Acknowledgement

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Department of Finance. Needless to mention my industry guide Mr. Akhil Swami. Finally yet importantly I would like to express my heartily thanks to my parents for their blessings. ABS. Chief Manager (Head Office. GAURAV SINGH Contents Declaration 2 5 |Page . Professor. Noida for his able guidance and useful suggestions. who had been a source of inspiration and for his timely guidance in the conduct of our project work. Words are inadequate in offering my thanks to the HRD Head and the honorable General Manager and Assistant General Manager of CBI for their cooperation and coordination in carrying out the project. my colleagues/friends for their help and wishes for the successful completion of this project. which helped me in completing my summer internship project successfully and with in time. I wish to express my deep sense of gratitude to my faculty guide Dr. CBI). Rajeev Khurana.

Research Methodology 21 5. Introduction to the Project 13 3. Conclusion 80 7. Recommendation 82 8. 1.No.Certificate from Industry Guide 3 Certificate from Faculty Guide 4 Acknowledgement 5 S. Limitations 84 9. Research Analysis Report 6. Literature Review 15 4. Introduction 8 2. References 86 Chapter 1: Introduction Organization Profile 6 |Page . Chapter Name Page No.

Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. 1926 Safe Deposit Locker facility and Rupee Travelers' Cheques. 1924 An Exclusive Ladies Department to cater to the Bank's women clientele. founder of the Bank. A number of innovative and unique banking activities have been launched by Central Bank of India and a brief mention of some of its pioneering services are as under: 1921 Introduction to the Home Savings Safe Deposit Scheme to build saving/thrift habits in all sections of the society. Central Bank of India was the first Indian commercial bank which was wholly owned and managed by Indians. In fact. The establishment of the Bank was the ultimate realisation of the dream of Sir Sorabji Pochkhanawala. such was the extent of pride felt by Sir Sorabji Pochkhanawala that he proclaimed Central Bank of India as the 'property of the nation and the country's asset'. 1994 Quick Cheque Collection Service (QCC) & Express Service was set up to enable speedy collection of outstation cheques. even after the nationalisation of the Bank in the year 1969. During the past 99 years of history the Bank has gathered many storms and faced many challenges. 1980 Centralcard. Central Bank continued to introduce a number of innovative banking services as under: 1976 The Merchant Banking Cell was established. the credit card of the Bank was introduced. 1989 The housing subsidiary Cent Bank Home Finance Ltd. He also added that 'Central Bank of India lives on people's faith and regards itself as the people's own bank'. was started with its headquarters at Bhopal in Madhya Pradesh. The Bank could successfully transform every threat into business opportunity and excelled over its peers in the Banking industry.Established in 1911. 1929 Setting up of the Executor and Trustee Department. 7 |Page . Subsequently. 1932 Deposit Insurance Benefit Scheme. 1986 'Platinum Jubilee Money Back Deposit Scheme' was launched. 1962 Recurring Deposit Scheme.

HDFC as also almost all major corporate houses in the country.Further in line with the guidelines from Reserve Bank of India as also the Government of India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3563 branches and 195 extension counters at various centers throughout the length and breadth of the country. Among the Public Sector Banks. IDBI. Central Bank has been playing an increasingly active role in promoting the key thrust areas of agriculture. The Bank also introduced a number of Self Employment Schemes to promote employment among the educated youth. LIC. due to distribution of its large network in 27 out of 28 States as also in 4 out of 7 Union Territories in India. Central Bank of India can be truly described as an All India Bank. 8 |Page . Customers' confidence in Central Bank of India's wide ranging services can very Ill be judged from the list of major corporate clients such as ICICI. UTI. financial and technological resources and effective risk control systems. Corporate Vision To emerge as a strong. small scale industries as also medium and large industries. vibrant and pro-active Bank/Financial Super Market and to positively contribute to the emerging needs of the economy through consistent harmonization of human.

♦ To leverage technology for efficient and effective delivery of all banking services. ♦ The pan-India spread of branches across all the state of the country will be utilized to further the socio economic objective of the Government of India with emphasis on Financial Inclusion. Unlike savings bank account no limits are fixed by banks on the number of transactions permitted in the Account. Considering the large number of transactions in the account and volatile nature of balances maintained overnight banks generally levy certain service charges for operating a Current account.Corporate Mission ♦ To transform the customer banking experience into a fruitful and enjoyable one. 9 |Page . ♦ To have bouquet of product and services tailor-made to meet customer’s aspirations. In terms of RBI directive banks are not allowed to pay any interest on the balances maintained in Current accounts. Banks generally insist on a higher minimum balance to be maintained in current account. CURRENT ACCOUNT FACILITY Current accounts are cheque operated accounts maintained for mainly business purposes.

Executors and Administrators. • PAN number / Declaration in form no. legal heirs of a deceased person are paid interest at the rates applicable to Savings bank deposit from the date of death of the account holder till the date of settlement. Because of the large number of transactions in the account and volatile nature of balances maintained. • Hindu Undivided Family (HUF). firms. a customer can deposit any amount of money any number of times. However. Societies. 10 | P a g e . and semi Govt. societies. local authorities etc.However. Documents Required for Opening a Current Account Following documents are required in case of individuals • Two passport size photographs • Proof of residence i. Current Account can be opened by: • An individual who has attained majority. • Limited Companies. Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts. banks usually levy certain service charges for operating a Current account. • Sole proprietorship concerns. Passport/driving license/Gas / Telephone / Electricity Bill/ Ration card/voters identity card • An introduction of the person from an existing account holder. companies. In a Current Account. a higher minimum balance as compared to Savings Account is required to be maintained in Current account. As per RBI directive banks are not allowed to pay any interest on the balances maintained in Current accounts. • Two or more individuals in their joint names. trusts etc. in case of death of the account holder his legal heirs are paid interest at the rates applicable to Savings bank deposit from the date of death till the date of settlement. • Trusts. and public enterprises etc. that have numerous daily banking transactions. • Clubs. • Partnership concerns. private and public limited companies.60 or 61 as per the Income Tax Act 1961 Different set of documents are required as per bank's norms if the account is opened by partnership firms. as long as he has funds to his credit.Govt. Generally. • Others . HUFs / specified associates.e. He can also withdraw any amount as many times as he wants. Current Account is primarily meant for businessmen. bodies.

Nangloi.Chapter 2: Introduction to the Project The project is a Marketing Research Survey in the Bank’s Market Area Branches with regards to Current Account Deposits. Pitampura 11 | P a g e . 2. and 3. The survey includes the market area of the following three branches of Central Bank of India’s Delhi region: 1. Lawrence Road.

) sample size for each three branches allotted by the organization.Project Objective To conduct a market research survey on Current Account and to know about the perception of customers about the current services offered by Central Bank of India along with Current Account Facility. Market Research Survey conducted with the help of a structured questionnaire with 50 (approx.) for each of the three branches. and to come up with suggestions with the help of research that can help in increasing customer base and level of satisfaction among customers Methodology adopted A market research process will be carried out for three different branches in their respective area with the help of a structured questionnaire and by getting data by filling up the questionnaire by their current and potential Current Account customers in a sample size of 50 (approx. Brief Summary of the Project A market research survey on Current Account is conducted to know about the perception of customers about the current services offered by Central Bank of India along with Current Account Facility. 12 | P a g e . and to come up with suggestions with the help of research that can help in increasing customer base and level of satisfaction among customers. how they are different with other (competitor) nationalized and private sector banks. how they are different with other (competitor) nationalized and private sector banks.

016 crore by subscribing to the rights issue New Delhi: State-owned Central Bank of India on Friday said that it would come out with a rights issue in the next few months to raise Rs2.” Central Bank of India chairman and managing director S Sridhar said after opening a bank branch at the headquarters of the organising committee of the Commonwealth Games 2010 here. 13 | P a g e . it will make a capital infusion of Rs2. “That (rights issue) we are working out. which would be out in the next few months.500 crore from the rights issue. He stated that the bank is planning to raise Rs2.500 crore.CHAPTER 3: LITRATURE REVIEW Central Bank of India to raise Rs2. Hence.500 cr from rights issue The central government holds about 80% stake in the Central Bank of India.

which is tight this month.6%. he said.016 crore by subscribing to the rights issue. Earlier this month. Source: http://www. Central Bank of India’s reverse mortgage loan annuity (RMLA) product.livemint. the bank would be able to increase the balance sheet size by about 10-12 times of the amount raised by way of equity. Hence. he added. With the infusion.html House-rich. Sridhar said that though there is an upward bias on interest rate. a new product to hit the market shows that the product is evolving and may be more friendly to the customer than the ones that are currently in the market. called Cent Swabhiman Plus. The Tier I capital of the bank is about 6. it will make a capital infusion of Rs2. The central government holds about 80% stake in the Central Bank of India. What’s new? 14 | P a g e .211 crore in five public sector banks. it would not go up till July. the government had infused Rs250 crore into the bank to shore up the capital. who own the remaining 20% stake in the bank.Stating that the details are yet to be worked out. Last week. a new product goes a step ahead and promises income for life Posted: Tue. combines annuity with a plain-vanilla reverse mortgage product for an old couple to overcome the risk of living too long. are being forced to consider. he said that they are required to obtain regulatory approval and complete other formalities before holding the issue. who are in the unfortunate position of being house-rich but cash-poor. But one that many. adding that it will cross 8% after the rights issue. but it is still in its early stages of development.com/2010/06/18163716/Central-Bank-of-India-to- raise.016-crore capital support to Central Bank of India with the objective of raising Tier I capital of over 8%. Liquidity. Also See Which Works? (Graphic) However. Another Rs500 crore may be raised from existing retail shareholders and FIIs. Dec 29 2009 12:48 AM IST Bindisha Sarang and Deepti Bhaskaran It is the last solution for a retired person. the government had announced a capital infusion of Rs6. The reverse mortgage product has been in India for more than three years now. cash-poor? Now get income for life Unlike regular reverse mortgage products that make payments for a fixed period. including Rs2. may ease next month as money would flow back into the system.

75 lakh. you get regular income throughout your life. the lower the rate. Option 2: This option is called “with return of premium”. For a house worth Rs1 crore.600 for lifetime if you go for Option 1 or an annual income of Rs4. you will get a monthly annuity of Rs28. Says Gautam Nayak. according to Central Bank. You get lower annuity. RMLA also gives the option of taking 25% of the amount as lump sum loan and the remaining as annuity. What should you do? 15 | P a g e . but payments stop.” Unlike regular reverse mortgage. they will have to repay only the interest. this gives annuity till you die. half-yearly or annual basis. he is not asked to move out of the house. RMLA comes with a fixed rate of 9. in turn. Flexibility: Most products allow you to access income on a monthly.7 lakh annually.50% with a reset option every two years.500 per month or Rs2.600 per month. So. chartered accountant. Compare this with State Bank of India’s reverse mortgage product that comes at an interest rate of 10. makes regular payments to the beneficiary through the bank. Contractor. Says Arun Kaul. but your kids need to pay less to recover the house.25-12%. on which you will get a monthly payout of Rs39. most other products in the market are more expensive (you get less income)—at 10. “without return of premium”. executive director.In a regular reverse mortgage. the owner borrows against the equity in his house and gets regular monthly payments from the bank. the product will give you a loan of Rs60 lakh. after your death. Annuity options RMLA has two options that come with the annuity product it buys from Star Union Dai-chi Life Insurance Co.000 (assuming you exhaust all tax deductions available under section 80C and section 80D) and still get a disposable monthly income of Rs39. The insurer. usually for 15 to 20 years. monthly or periodic annuity payments are defined as ‘salaries’ under section 17 and are taxable.” This means that you will have to pay income-tax on the annuity on RMLA. Under RMLA. it works best for those who don’t have an heir. For a house worth Rs1 crore. Nayak and Kishnadwala: “All payments under reverse mortgage loan are exempt under section 10(43) of the Income-tax Act. If your heirs want to get back the property. Under this. You will pay a tax of about Rs5. Central Bank: “We pass on the value of the house to the insurance company by paying premiums. After that. the annuity for a person aged 60-65 years will be Rs39.880. your heirs can repay the entire amount you received (premium and interest) to get back the house. For a property worth Rs1 crore. quarterly. where the banks make the payment. Ltd. here the bank merely acts as an interface between the insurer and the customer. This tax-free income is less than the tax paid for RMLA. Since you get more money under this as compared with the other option. the insurer will repay the premiums to the bank. Tax angle The difference between a regular product and this one is in the tax treatment. the better it is for you. It gives just Rs22. promising regular income for 15 years. On the other hand. Scheme details It’s cheaper: Look at a reverse mortgage product as a loan against the house on which you have to pay interest.75%. But. Option 1: Called. If the borrower outlives the tenure.171.

Reverse mortgage products are still in their infancy in India. more than the total profit recorded in the entire fiscal 2009. If you are really pushed for cash and must give up your house.livemint. more than the total profit recorded in the entire fiscal 2009 Posted: Mon. 16 | P a g e . During the first six months of 2009-10. “Second half of the year (profit) will not be as good as the first half. the bank recorded a net profit of Rs581 crore. However.com/Articles/PopUp. This would be because treasury profit in the second half would not be as much as in the first half of the fiscal. the bank will try and compensate the shortfall in treasury profit by increasing its operational profit and through better recovery from non-performing assets. he said. he said.aspx?id=b9b67c60-f3b6-11de-8a00- 000b5dabf613 Treasury to drag down H2 profit: Central Bank During the first six months of 2009-10.” said Central Bank chairman and managing director S. the bank recorded a net profit of Rs581 crore. Source: http://www. the Central Bank product looks to be the most consumer friendly as of now. Jan 4 2010 5:01 PM IST New Delhi: The Central Bank of India on Monday said its profit during the second half of FY10 would not be “as good as” the first half as treasury gains have declined. Sridhar.

” S. its chairman said on Wednesday.Asked about credit growth Sridhar said credit has started picking up in the last month and the trend should intensify further. he said. he said. Sridhar said.8% in November. manufacturing and retail sectors. he said. but recovery led to pick up in loan growth in January to 14.8%. Economic slowdown hit the bank loan growth that slid to 9. February 24. The bank had planned to grow advances by 20% during 2009-10 and it is not revising the target. Source: http://www. “We are evaluating the bids and the final decision is expected in a couple of days. In between April and December the credit offtake has risen by 11% and the bank expects robust demand in the last quarter. The lender is targeting a loan growth of 20% in 2010-11 with pick up in credit demand from infrastructure. lower than target of 18% for the fiscal.aspx?id=591394c4-f924-11de-b5f0- 000b5dabf613 Central Bank finalizing bids for NPA sale The bank is expecting a credit growth of 2009-10 at 15-16%. 17 | P a g e .com/Articles/PopUp. The bank is expecting a credit growth of 2009-10 at 15-16%.livemint. lower than target of 18% for the fiscal Posted: Wednesday. Sridhar told Reuters on the sidelines of a banking summit. on lower demand from industry following economic slowdown. 2010 6:22 PM IST Reuters Mumbai: State-run Central Bank of India is in final stages of evaluating bids from asset reconstruction companies to sell non performing assets worth Rs400 crore.

18 | P a g e . Also See How Much You Pay (Graphics) You need to submit the earnest money.19%.60 in the stock market that ended down 0. Of course.The bank also plans to raise its stake in its housing finance arm from 59% now to make it a wholly owned unit. or the upfront booking cost. though at a cost. depending on the unit size and specification. 9:06 PM IST Devesh Chandra Srivastava Every time the Delhi Development Authority (DDA) or your local development authority comes out with a housing scheme.5-2 lakh. Mar 22 2010. But being short of cash is no longer reason enough to let go of this investment opportunity. Shares in the bank ended 4.77% down at Rs149.” National Housing Bank. you may not lose the investment opportunity even if you are short on funds Posted: Mon. Booking govt-built flats: banks lend helping hand With banks stepping in and giving you time to arrange for enough cash. it helps them earn interest on the float for the two to five months the money remains with them. and Unit Trust of India are the other stakeholders in the unit Cent Bank Home Finance. The city developers demand that money to ensure that only serious buyers apply. you wish you had not just blown up that Rs2 lakh on the Singapore trip. that could be Rs1. “Talks are on with existing stakeholders. These flats usually come at a discount to the private sector builder flats and houses. You can now take banks’ help. Here is a perfectly great investment option and you are short of ready cash. Housing Urban Development Co.

it gives the applicant time to arrange the money within a period of time. witnessed the trend. At 4%. chief executive officer. too. But before anyone goes into such an arrangement. If the booking amount is. they cross-check for errors. usually 4-10% of the earnest money. the applicant has the choice to repay the earnest money and move to some other bank for the rest of the loan. he has to pay the bank the entire sum within the next 30-40 days. How it works? Banks usually sell the forms through their select branches. You should have the proof of submitting the earnest money before you start the procedure of getting the home loan. a real estate brokering and consulting firm. Qubrex. make sure to collect the proof of your payment made to the authority by the previous bank. Kamal Gupta.Banks are now stepping in to fill the gap and offering to lend you the earnest money in the hope that you get allotment and then they get a home loan customer.” says Sanjay Sharma.com.000 as the margin money at 10%. Often due to a huge number of buyers you may have to take the pain to stand in a queue. which includes processing fee and six months’ interest. a senior bank official with the Central Bank of India. “If the applicant gets the allotment after the draw.” says Harsh Roongta. managing director.5 lakh. “Through disbursement of earnest money. Along with the earnest money. In case of successful allotment. Later officials from the authority who sit at these select branches collect your complete form. lending becomes easier when the applicant approaches after the allotment. he should have the financial resources to fund the booking money payable to the bank in case of successful allotment. But as banks are sitting on huge amounts of liquidity.” However. say. The bank will charge a margin amount. Punjab National Bank. the applicant should be sure that he would be able to pay back the money.000. ICICI Bank Ltd and HDFC Bank Ltd are all offering schemes in collaboration with the city housing boards. Before giving you the receipt. For banks it is easier to recover the money. a successful allottee of the DDA draw in 2008. it would amount to Rs6. Rs1. managing director of Raheja Developers Ltd: “Banks keep the margin money to secure the interest. you have to pay up to Rs15.com. you have to submit the margin amount in cash. “Due to bureaucratic hurdles people prefer to go to private banks. Says Navin Raheja. They process the application forms through these select branches.” The trend began in August 2008 with the housing scheme launched by DDA and was also seen in January’s residential plot scheme by the Haryana Urban Development Authority when the home loan market was sluggish. Some banks take the same amount through cheques. 19 | P a g e . Also.N.” It is only after the earnest money is paid back that the applicant can get a housing loan. Bank of India and State Bank of India. says. Make no mistakes such as overwriting or you may be asked to fill another form. and private banks such as Axis Bank Ltd. Margin amount is non-refundable in case you are not allotted a house. before applying. says. such as the Greater Noida Authority’s housing scheme in February. ApnaPaisa. A majority of applicants approach private banks. What it costs? You can ask the bank to pay the initial deposit on your behalf. banks encourage people to buy a house indirectly. The main purpose of such an arrangement is to make the process of application smoother.S Ratnakar. Other schemes. It helps the buyer with funds needed at the time of booking. “The trend is more common in north India. B. So. where they lend the booking amount. all you have to do is to pay Rs100-200 per form. a home loan portal. State-owned banks such as Central Bank of India. But before you switch to any other bank.

This section does more than outline the researchers’ methods (as in.). public sector banks have stringent measures—applicants living in a rented accommodation are often rejected. driving licence. And do remember to do some research on banks that are asking for the lowest margin money. etc.livemint.What you need You need to have a residence proof—passport. Source: http://www.com/Articles/PopUp. It is easier to get the earnest money from a bank if you have an account with it. concepts or ideas as they relate to a particular discipline or field of inquiry. says Pradeep Mishra. 20 | P a g e . Some banks also ask for income-tax return receipt. Methodology refers to more than a simple set of method. However. Delhi-based independent real estate analyst. This is why scholarly literature often includes a section on the methodology of the researchers. electricity bill or your voter identity card would do.aspx?id=5d987a8c-35bf-11df-9354- 000b5dabf613 CHAPTER 4: RESEARCH METHODOLOGY INTRODUCTION Methodology includes a philosophically coherent collection of theories. “I conducted a survey of 50 people over a two-week period and subjected the results to statistical analysis”. it might explain what the researchers’ ontological or epistemological views are. rather it refers to the rationale and the philosophical assumptions that underlie a particular study relative to the scientific method. Banks will also require a photocopy of your permanent account number card.

These locations reside in the three branch regions of Central Bank of India’s Delhi region. Researchers acknowledge the need for rigor. what. brand image. The survey is conducted with help of a structured questionnaire. which is being supported by “this” methodology. RESEARCH PROBLEM I conducted a market research project to judge the market condition of Central Bank of India with the other competitor banks in the specified regions. with the competitor banks of both private and public sector based on the following parameters: • Customer preference for facilities provided with current account facility 21 | P a g e . Examples of this are found in software development. This use of the term is typified by the outline who. and why. The judgment is based upon the survey conducted at three locations. The analysis of this study is done using software known as SPSS and complied using MS Word . The processes themselves are only part of the methodology along with the identification and usage of the standards.The study will reveal about the different important aspects of Indian banking market. logic. etc. that is where I would find the "methods" or processes.The study revolves around the comparison of the Central bank of India’s Current Account facility and other crucial aspects of banking like customer service. employee behavior. rules. project management and business process fields. where. which are subject to peer review. and coherence in their methodologies. policies. when. In the documentation of the processes that make up the discipline. infrastructure etc.Another key (though arguably imprecise) usage for methodology does not refer to research or to the specific analysis techniques. This often refers to anything and everything that can be encapsulated for a discipline or a series of processes. activities and tasks.

brand Image etc. • Reasons behind preferring a particular bank • Customer satisfaction and loyalty level • Expectation of customers • Attractiveness and mode of customer awareness • Additional services preferred • Kind of way in which customers like to operate their bank by customer Thus. customer service. I can conclude that the main reason behind conducting this study is compare the other banks services and facilities with the Central Bank of India and to get answers of some important questions. The objective of carrying out the research work is to get answers about the following questions: • What specific qualities do consumers look for while selecting a bank to do business with? • How the current account customers of Central Bank of India and its competitor banks rate the different features (like employee behavior.) of their bank? • What are the most influential factors that provide awareness to the customer about the bank and its products? • How often the customers use their accounts (frequency) and how they like to operate their account? • What features customers look for while opening a current account with any bank? 22 | P a g e .

tests of specific hypothesis . In this market research project for Current Account Facility of Central Bank of India I have firstly prepared a questionnaire which comprises of 21 questions enquiring about the problems faced by numerous customers while doing business with banks.small number of respondents . 23 | P a g e .RESEARCH DESIGN Research design is a plan outlining how the information is to be gathered for an assessment or evaluation that includes identifying data gathering methods. and projective techniques • Quantitative marketing research . Techniques can include choice modeling. in-depth interviews. and covariance analysis. Further more a research design also includes timely completion of the study and also keeping cost within the budgeted levels. maximum difference preference scaling.generally used to draw conclusions . The structured questionnaire will then be analyzed with the help of SPSS. instruments to be used and how the information will be organized and analyzed. In the present research on Current Account Facility I have used Quantitative Research methods.involves a large number of respondents . Based on the analysis done in SPSS I have drawn conclusion.uses random sampling techniques so as to infer from the sample to the population .examples include focus groups.statistical significance and confidence not calculated . Finally I have also mentioned the limitations of the research and the problems faced while conducting the market research.generally used for exploratory purposes . Quantitative marketing research is the application of quantitative research techniques to the field. The research design can be classified into the following two types: • Qualitative marketing research .examples include surveys and questionnaires.not generalizable to the whole population .

TECHNIQUES OF DATA COLLECTION PRIMARY DATA In this project I have analyzed data from a sample size of 152 customers from. SECONDARY DATA In the project I have collected the information from different sources about Current Account that are from: 1. three branch areas in Delhi region by administering questionnaires. Out of the 152 respondents 48 are from Lawerence Road branch area. 24 | P a g e .In the present project I have used questionnaires as our method for conducting our research. 53 are from Pitampura branch area and 51 are from the Nangloi branch area. Internet: 2. In the present research I have used questionnaires as the research instrument. This method helped us to gain an overview of the perceptions of customers in relation to current account facility and also the level customer satisfaction of different banking institutions with Central Bank of India. Newspapers: RESEARCH INSTRUMENTS The kind of research instruments one uses greatly helps in realizing the reliability and validity of a research. Books: 3.

Non. etc.) of an observable entity enumerated to distinguish objects or individuals. Results from probability theory and statistical theory are employed to guide practice. this is not always the case. Non-Structured Disguised Questionnaire.These are clear and direct questionnaires usually suitable for large samples and descriptive research. Survey lights often need to be applied to the data to adjust for the sample design. In the present research on Current Account Facility of Central Bank of India I have used “Structured Non-Disguised Questionnaire” SAMPLING Sampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern.QUESTIONAIRES Under the Quantitative research on “Current Account Facility provided by Central Bank of India” the research tool used here is “Questionnaire” A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents.These are flexible and direct and appropriate when looking for in depth answers and exploratory research. especially for the purposes of statistical inference. Each observation measures one or more properties (Iight. Non-Structured. location. TYPES Structured Non-disguised Questionnaire.These are clear and investigative. Although they are often designed for statistical analysis of the responses.Disguised Questionnaire. Structured Disguised Questionnaire.These are flexible and investigative and appropriate in motivation research. Sampling is useful for a researcher as it saves time. 25 | P a g e . effort and money. used to uncover people’s attitude towards sensitive issues.

and supporting decision making. 2. a set of items or events possible to measure • Specifying a sampling method for selecting items or events from the frame • Determining the sample size • Implementing the sampling plan • Sampling and data collecting • Reviewing the sampling process In this research on “Current Account Facility of Central Bank of India” I have followed the following steps: 1. Geographical Spread of the target population (Sampling Frame): The area of research is Delhi region. 15 CBI customers and 33 other banks customers) were the areas for primary data collection by way of Questionnaires. 3.Probability Sampling method which is Convenience Sampling. cleaning. 4. 15 CBI customers and 33 other banks customers). Target Population: The target population used for sample selection here is the users of current account facility of Central Bank of India and other banking institutions. In Delhi. and modeling data with the goal of highlighting useful information. Pitampura (Sample Size 53. suggesting conclusions. 26 | P a g e . DATA ANALYSIS TECHNIQUES Analysis of data is a process of inspecting. Sampling Method Used: I have used the Non. 19 CBI customers and 34 other banks customers) and Nangloi (Sample Size 51. transforming. area of Lawerence Road Industrial Area (Sample Size 48. Sample size: the sample size is 152.The sampling process comprises several stages: • Defining the population of concern • Specifying a sampling frame.

the most common measure of central tendency. in different business. especially when more than one value occurs frequently. etc. The mean of a sample is designated by the symbol x-bar (0). science. variance. Mode is the value occurring most often in the data. For example. especially if data are skewed. The mode is the least commonly used measure of central tendency. central tendency and dispersion. they form the basis of virtually every quantitative analysis of data. 27 | P a g e . mode. However. such as the mean. Measures of Central Tendency indicate the middle and commonly occurring points in a data set. Under the descriptive analysis Univariate analysis methods have been used. The mean may not always be the best measure of central tendency. and social science domains.Data analysis has multiple facets and approaches. The frequency distribution is the foundation of descriptive statistics. Frequency Distributions summarize and compress data by grouping them into classes and recording how many data points fall into each class. Median is the value in the middle of the data set when the measurements are arranged in order of magnitude. Such as frequency distribution. the sixth value is the median since five values fall both above and below the sixth value. encompassing diverse techniques under a variety of names. median. Together with simple graphics analysis. particularly in large data sets. Fifty percent of families would have incomes above or below the median. The three main measures of central tendency used are- Mean is the average. then 25 would be the mode. standard deviation. Median family income is often used in statistics because this value represents the exact middle of the data better than the mean. The various data analysis used in the present research is as follows: Descriptive Data Analysis: Descriptive analysis is used to describe the basic features of the data in a study. If the largest group of people in a sample measuring age were 25 years old. They provide simple summaries about the sample and the measures. if 11 individuals were Iighed and their Iights arranged in ascending or descending order. It is a prerequisite for the various graphs used to display data and the basic statistics used to describe a data set. the mode is still important for describing a data set.

making return to Table of Contents predictions about the properties of a population based on information obtained from a sample. and kurtosis of data. Inferential analysis provides more detailed information than descriptive statistics. reveals causes and effects and makes predictions.Measures of Dispersion indicate how spread out the data is around the mean.e. INFERENTIAL DATA ANALYSIS Inferential analysis deals with drawing conclusions and. 28 | P a g e . It is used more commonly than the variance in expressing the degree to which data are spread out. The most common measures of dispersion follow. Measures of dispersion are especially helpful when data are normally distributed. While descriptive analysis provides information about the central tendency. i. in some cases. Variance is expressed as the sum of the squares of the differences between each observation and the mean. the more spread out the data. Coefficient of variation measures relative dispersion by dividing the standard deviation by the mean and then multiplying by 100 to render a percent. Variance can be used when I want to quickly compare the variability of two or more sets of interval data. the higher the variance. They are also used to investigate differences between and among groups. Variance is used less frequently than standard deviation as a measure of dispersion. yields insight into relationships between variables. Inferential analysis is frequently used to answer cause-and-effect questions and make predictions. Inferential analysis allows making broader statements about the relationships between data. skew. generates convincing support for a given theory and can be generally accepted due to widespread use in business and academia. It is the average difference between observed values and the mean. closely resemble the bell curve. In general. Standard deviation is expressed as the positive square root of the Variance. dispersion. which quantity is then divided by the sample size. The standard deviation is used when expressing dispersion in the same units as the original measurements.

A value of 0 indicates no relationship. x and y move uniformly together. i. gender. Like correlation.. and now Research Professor in the Department of Political Science at Stanford and Professor Emeritus of Political Science at the University of Chicago. It is used most appropriately when both the independent and dependent variables are interval.g. Regression analysis permits including multiple independent variables.The various techniques of inferential analysis are: Chi-square (P2) tests are used to identify differences between groups when all variables nominal. Political party affiliation and so forth. Hadlai Hull. Such tests are normally used with contingency tables which group observations based on common Characteristics. Correlation is used to measure the similarity in the Changes of values of interval variables but is not influenced by the units of measure. ethnicity. regression analysis assumes that the relationship between variables is linear. SOFTWARE USED SPSS (originally. Nie and C. Another advantage of correlation is that it is always bounded by the interval: -1 <0<1 Here -1 indicates a perfect inverse linear relationship. i. y increases uniformly as x decreases. Regression measures the relative impact of each independent variable and is useful in forecasting.e. e.e. Regression analysis is often used to determine the effect of independent variables on a dependent variable. and 1 indicates a perfect direct linear Relationship. though some social scientists also use regression on ordinal data. Note that correlation can determine that a relationship exists between variables but says nothing about the correlation or directional effect. Statistical Package for the Social Sciences) was released in its first version in 1968 after being developed by Norman H. Norman Nie was then a political science postgraduate at Stanford University. salary group.[3] SPSS is among the most widely used programs for statistical analysis in 29 | P a g e .

health researchers. cluster analysis (two-step. Bent & Hull. survey companies. partial. The original SPSS manual (Nie. creating derived data) and data documentation (a metadata dictionary is stored in the data file) are features of the base software.social science. marketing organizations and others. Descriptive Ratio Statistics • Bivariate statistics: Means. data management (case selection. Descriptives. government. hierarchical) In the present research I have used SPSS software due to its ease of use and the various analysis tools it provides. Walonick. It is used by market researchers. Nonparametric tests • Prediction for numerical outcomes: Linear regression • Prediction for identifying groups: Factor analysis. t-test. Explore. Sources of secondary research • Elements of a research proposal and report 2005 © David S. file reshaping. PhD • Marketing Research by Naresh K Malhotra 30 | P a g e . education researchers. distances). ANOVA. Statistics included in the base software: • Descriptive statistics: Cross tabulation.[4] In addition to statistical analysis. 1970) has been described as one of "sociology's most influential books". Frequencies. K-means. Correlation (bivariate.

Recurrent Deposit Account ii. Survey Questionnaire on Current Account Facilities Dear Sir/Madam. Fixed Deposit A/c. Others (Please Specify)___________________ Q3.___________________________ Q1. Name _________________________________________ Age ___Years Name of the Organization_________________________________________________ Address _____________________________________________________________ _____________________________________Contact No. If Yes. Then which type of A/c: i. How often do you visit your Bank: i. iii. Savings A/c v. Current A/c iv. This information provided by you will be kept secure and confidential. Do you have a Bank A/c? Yes No Q2. This questionnaire is meant for generating feedback regarding current account facilities provided by Central bank of India and for educational purposes as Ill. Daily iii. Monthly 31 | P a g e .

Brand image vi. Corporate ii.5=Very poor) i. Friends Q9. Online Facilities viii. Weekly iv. Rate the following features of your Bank (1=Very good . Others_______________________ 32 | P a g e . Internet Banking v. Collection from debtors ii. Infrastructure Q7.3=Satifactory. Personal iv. Customer Services iv. Salary payments iii. Variations in Products vii.4=Poor. Rarely Q4. Business v. Location iv. For what purpose you use a Current A/c: i. For what purpose do you use your A/c: i. Reliability iii. Institutional iii. 2=Good. ATM iii. How do you like to carry out your Transactions: i. ii. Family ii. Advertisements iii. What factors you consider while choosing your Bank (Select all that apply) i. Employee behavior ii. Operational expenses vi. Phone Banking iv. Others____________________________ Q6. Payment to creditors iv. Security ii. Timely Response v. Convenience iii. Agents iv. Working capital requirements v. What factors provides you awareness about the Bank and its Products: i. Infrastructure Q8. Personal Visit ii. Facilities v. Others (Please Specify)___________________ Q5.

vi. ICICI Bank v. Cheque Book (No. 24 hour Phone Banking. Central Bank of India ii. HDFC Bank iii. What features you look for in a Current A/c: i. Withdrawal and Cash Deposit at all Branches. Others (please specify) _____________________ Q12.14 Do you agree that facilities provided by Central Bank are much flexible than the other Bank services Yes No 33 | P a g e .Q10. Cash and Cheque pickup and Cash delivery. SBI iv. A/c to A/c funds transfer with other Bank A/c. Others (Please Specify)__________________________. Are you satisfied by the services of your Current Bank? Yes No If No. How would you rate your Current Bank services : Very Good Good Satisfactory Poor Very Poor Q13. Demand draft facility / Pay order facility iv. v. ii. of leaves) vii. RTGS/NEFT Transactions. Q11. With which Bank do you have your Current Account: i. viii. Please specify the reason ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ………………………………………………………………………………………… Q. x. ix. Net Banking . A/c to A/c funds transfer within Bank Branches. Mobile Banking. iii. Minimum balance to maintain.

Which one i.Rate the Range of Product Offering? Very Good Good Satisfactory Poor Very Poor Q 17. Additional Services you like to avail or provided as a package with Current Account _____________________________________________________________________________________ _____________________________________________________________________________________ Q 19.Ever Opted for other services Yes No If yes. Credit card Service provider _____________________________ iv.Of the following schemes and products which are you most likely to avail in near future (Can choose multiple options) (a)Deposits 34 | P a g e . Insurance Service provider _____________________________ ii. Tax Advice Service provider _____________________________ Q 16. Rate the Customer service? Very Good Good Satisfactory Poor Very Poor Q 18. Please specify the reason ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ………………………………………………………………………………………… Q 15. If No. Investment advice Service provider _____________________________ v. Debit card Service provider _____________________________ iii.

50000-75000 ii. Foreign Exchange iii. Money transfer vi. Savings account iii. Educational iii. Housing ii. Debit Card ii. Private Organization iii. Personal vi. Government Organization vi. Monthly Income (Rs) : i. Cash Management Service iii. Government service v. Investment schemes (d)Other services i. Others (Please Specify) ___________________ Q21. Insurance v. 10000-30000 v. Vehicle (c)International Banking i. Credit Card iv. Facilities for NRI ii. Other Specify_________________ (b)Loans i. Senior Citizen Deposit schemes iv. Private service ii. Fixed deposits ii. 75000-100000 35 | P a g e . Computer v. Depository Services (e)Not likely to avail any services Q20 . Upto 10000 iv. i. Car iv. Field of Work: i. Mutual Funds vi. Facilities For Exporters and Importers v. Business vii. Self-employed iv. NRI account iv.

Above 100000 Chapter 5: Research Analysis Report Lawrence Road Branch: 36 | P a g e . 30000-50000 vi. iii.

Syndicate Bank and State Bank of India • Most of the bank customers in Lawerence Road are having their businesses setup from many years and trust mainly on Public Sector Unit (PSU) Banks • This is one of the reasons that out of the 33 other bank current account customers being surveyed (during the research) only three of them are having an account in a private sector bank • In the last few years the Lawerence Road branch have lost most of its customer space reasons being 37 | P a g e .e. with a lot of opportunity as a banking entity the central Bank of India’s Lawrence Road Branch is facing a great deal of competition from other bank branches in the area like PNB. Bank of Baroda. Andhra Bank. Lawerence Road NEW DELHI-110034 State : DELHI District : DELHI Branch : Lawerence Road Contact : 011-27189708 IFSC Code : CBIN0281153 (used for RTGS and NEFT transactions) Important Points: • Central Bank of India’s Lawerence Road Area Branch is situated in the one of the Delhi’s most important industry point i. Lawerence Road Ind. Area • It is one of the most old branches of any bank in this area serving the area from more then 20 years being the first branch of any bank to be operating in Lawrence Road Area • Lawrence Road Industrial area includes SME’s (Small and Medium Scale Enterprise) in number in thousands with a vast opportunity for increasing business as a banking entity • But. Community Centre. Branch Manager : Basant Lal (Former) Address : C-10.

 Location One of the reason (unavoidable) of the branch area becoming quite difficult to access due to the construction of an Railway underpass from around 3 years which is almost finished now  Avoidance Second reason came out of the research is the avoidance of current account business by the branch managers of recent times. There is a very high requirement of a Public relation officer in the branch in order to keep the current customers in their reach  Security Absence of a security guard/ gun man was complained by some of the customers. Most of the accounts were having nil balance and were not active. The customers used to feel insecure while taking out huge amount out of the bank due to the absence of security guard SPSS Analysis: 1. 38 | P a g e . The branch staff in spite of knowing this are not doing about it  Lack of Customer interaction Many of the customers were having complaints about lack of interaction with any of the staff members and were not able to relate with their bank (CBI).

Rate the following features of your Bank? 39 | P a g e . Monthly ii. Weekly iv. Rarely Many of the Current Account customers visit their branches weekly that shows a requirement of educating customers about net banking/phone banking so that they can fulfill their requirement from home removing any need of them to visit their branches personally thereby saving time and money. 2. How often do you visit your Bank : i. Daily iii. Q6.Q3.

Online Facilities viii. Variations in Products vii.4=Poor.5=Very poor) i. 2=Good.( 1=Very Good . Reliability iii. Timely Response v. Maximum People considered Location and facilities as the most influential factor in selecting bank 40 | P a g e . Customer Services iv. Employee behavior ii. 4.3=Satifactory. Brand image vi. Infrastructure 1.

Nangloi Branch: 41 | P a g e .

Address : 24. NAJAFGARH ROAD. DELHI-110041 State : DELHI District : DELHI Branch : NANGLOI Contact : 011-25942484 IFSC Code : CBIN0283651 (used for RTGS and NEFT transactions) • Central Bank of India’s Nangloi Branch is situated on the Najafgarh Road. NANGLOI NEW DELHI. Where Syndicate Bank branch is one of the oldest branches in the area. Nangloi is situated at the rear end of Delhi nearby Haryana and is a very popular industrial place • There are a number of small and big industrial areas in Nangloi City like Naresh Park extension. Punjab National Bank. Oriental Bank of Commerce. Dena Bank etc. State Bank of India branch is only one year old only • The main problems faced by the branch and it’s business are as follows:  Competition As the CBI Nangloi Branch is quite new in the area while many other branches are older then it and have already made their customer base CBI is still looking to make reputation among the customers 42 | P a g e . • Out of the all competitor branches Syndicate Bank is most popular branch in that area and State Bank of India are the most popular ones in the area. State Bank of India. Swarn Park and DSIDC Industrial complex etc • The Central Bank of India’s Nangloi branch is quite a young one in the Nangloi region with a service time of only less then a couple of years in the area • The branch is doing quite Ill in order of business with the Current Account facility as being a new branch in the area • The Central Bank of India has many other bank branches in the neighborhood that includes Syndicate Bank.

The reason behind is said to be due to the improper number of staff people in the branch  Employee Behavior The customers have given feedback about the employee behavior and rated it as below average suggesting unfriendly behavior of staff members with the current customers SPSS Analysis:- 43 | P a g e .  Low Number of Staff Members The customers have given complaints about delay in their work done during their branch visits which results in the customer s waiting long in order to get their work done.

Employee Behavior and Customer Services were found to be having lower satisfied customers for employee behavior and Customer Service 44 | P a g e .1. Most of the customers found to be visiting their branches weekly 2.

45 | P a g e .

DELHI-110034 State : DELHI District : DELHI Branch : Pitampura Contact : 011-27025127 IFSC Code : CBIN0283490 (used for RTGS and NEFT transactions) Important Points: • Central Bank of India’s Pitampura Branch is situated in a residential area of Pitampura’s Shakti Vihar and in the neighborhood of the famous Rani Bagh Market area • The Pitampura branch of Central Bank of India is a new branch with only a couple of year in service in the area and is doing quite Ill in the area 46 | P a g e . Pitampura NEW DELHI. Pitampura Branch: Branch Manager : K. L. Balmiki Address : 119. Shakti Vihar.

The customers used to feel insecure while taking out huge amount out of the bank due to the absence of security guard  Low Number of Staff Members The customers have given complaints about delay in their work done during their branch visits which results in the customer s waiting long in order to get their work done. The reason behind is said to be due to the improper number of staff people in the branch 47 | P a g e . • The main problem in current account facility business in the Pitampura region is that the region is mainly a residential area and the Rani Bagh market though a very big market but it includes mainly small kind of shops which have a very low ratio of current account holder • As the number of current account holders is not in the Pitampura region therefore maximum number of banks present in the area keep their customers very Ill treated so that they don’t leave them • The Pitampura branch has been found to have maximum number of satisfied current customers out of the all three branches of the research domain • The main problems faced by the Pitampura branch are  Lack of Opportunity As compared to other two branches of the research domain the Pitampura branch Area have a very less number of potential and current customers of current account facility in any bank branch  Customer Awareness Many of the people were found unaware of the presence of the Central Bank branch in the vicinity and are required to be informed about the presence of the branch with the help of the promotional activities like loan fairs and customer meets  Lack of Differentiation As the types of services provided by all the banks are almost same the problem faced by the Central Bank of India is that it is not able to provide anything extra to the customers to attract them towards our bank  Security Absence of a security guard/ gun man was complained by some of the customers.

More then half the people were found to visit their branches weekly 2.SPSS Analysis:- 1. Employee Behavior and Customer Services were found to be having lower satisfied customers for employee behavior and Customer Service 48 | P a g e .

49 | P a g e .

Current A/c iv. hundred percent respondents were having a current account in a bank. Fixed Deposit A/c. So. If Yes.Only respondent who were at least having a current account were approached.Chapter 6: Collective Analysis (All three Branch Areas):- According to responses of all the 152 respondents for the questionnaire……… Q1. Q2. Do you have a Bank A/c? Yes No Analysis: .Every respondent who was approached in the survey was having an account with some bank. Savings A/c v. Current A/c 50 | P a g e . Recurrent Deposit Account ii. Others (Please Specify) ___________________ Analysis: . Then which type of A/c : i.

Savings A/c Out of the 152 respondents 30 were also having saving account. Fixed Deposit A/c 51 | P a g e .

How often do you visit your Bank : i. Daily iii. This shows the need to promote internet 52 | P a g e .05%) use to visit their branches daily. Out of all the respondents surveyed no one found to have a fixed account. Rarely Analysis: - Out of the 152 customers 92 (60. Recurrent A/C Out of all the respondents surveyed no one found to have a fixed account. Monthly ii. Weekly iv. Q3.53%) are found to visit their respective bank branches Weekly and 32 (21.

Q5.All the Current Account customers surveyed in the three branch areas are using their current account for business purpose. Others (Please Specify) ___________________ Analysis: .banking in these branch areas so that need to visit branches can be minimized and customers can be benefited with this service. which means that there is a great need of taping the potential of organizations working in other areas like corporate. Internet Banking v. Business v. How do you like to carry out your Transactions? i.All the Current Account customers surveyed in the three branch areas like to operate their account by making personal visits mainly. This shows the need to promote internet banking in these 53 | P a g e . Corporate ii. Personal iv. ATM Others____________________________ Analysis: . Personal Visit ii. Phone Banking iv. Institutional iii. For what purpose do you use your A/c: i. Q4. institutional etc.

Online Facilities viii. Customer Services iv. Rate the following features of your Bank? (1=Very Good . 2=Good.4=Poor. Q6.Every respondent rated his/her bank good in the four point scale. 54 | P a g e . Variations in Products vii. Brand image vi. Infrastructure Analysis: - Timely Response: .3=Satifactory. Timely Response v.branch areas so that need to visit branches can be minimized and customers can be benefited with this service.5=Very poor) i. Reliability iii. Employee behavior ii.

55 | P a g e . 33.33% customers of ICICI. the CBI can increase its brand image among the customers by encasing the opportunity of being the official banking partner of the 2010 Common Ialth Games. and 32 % customers of other banks rated their respective banks very good (highest) on four point scale. This shows that CBI have loIst brand image among their customers.Brand Image:- 100% customers of SBI. 50% customers of HDFC. So. 29% customers CBI.

Variation in products: - As the variety of products offered by all the banks are almost same therefore customers rated their respective banks in the same manner. there is almost no difference in customer rating fo variation in products for all the banks. 56 | P a g e . So.

Online Facilities: - As the number of Current Account customer who use internet banking was very less therefore almost every customer rated their banks online facilities good due to lack of knowledge. Employee Behavior: - 57 | P a g e .

58 | P a g e . Reliability: - Almost customers of CBI were found to feel their bank reliable and secure.Every other bank customer except CBI rated their bank’s employee behavior either good or very good while 29% of customers of CBI rated its employee behavior as satisfactory which shows the extent to which the customers of other banks are happy with the employee behavior of their respective banks other then CBI. This shows that the employee behavior is required to be made more customer friendly by different kind of hospitality program.

Customer Service:- 59 | P a g e .

I can say that although the quality of customer service of CBI is competitive with respect to other banks according to the customers’ response but.The customers’ response was quite spread over three parameters i. 19% of other bank customers and 18 percent of the CBI customers are only satisfied with the customer service of their respective banks. and very good. still there is good scope and need for improvement so as to create an edge over the other competitor banks. 88% customers of CBI rated the customer service as good or very good. and 81% of other bank customers rated the services provided by their bank as good or very good. While 100% customers of SBI and ICICI. Infrastructure: - 60 | P a g e . satisfactory. Other way around 50% of HDFC. 50% of HDFC bank.e. good. So.

reliable and latest technology and ATMs.As far as infrastructure is concerned I can see from the figures that CBI is lagging behind all other competitor banks as around 24% customers of CBI were only satisfied with the infrastructure of the all three branches. implementing fast. Location iv. So I can say that the infrastructure of the following branches should be upgraded by increasing space. Security 61 | P a g e . making customer friendly layout. Q7. What factors you consider while choosing your Bank (Select all that apply) i.

ii. ii. Facilities:- 62 | P a g e . Convenience iii. These result shows that how important it is for any bank to strategies the location of their branches with respect to the surroundings and neighborhood for example it is found during the study that the bank branches in the middle or near by the important/popular market/industry place are more popular then their competitors. Infrastructure i. Facilities v. Location :- All the respondents irrespective of their banks said that location (branch location) is on the top of their priority list while choosing the bank with which they want to do business.

phone banking. I can say that banks should provide best facilities to their iii. These result shows that how important it is for any bank to provide the best facilities to their customers like net banking. priority banking and presence of ATM in the vicinity etc. Infrastructure:- 63 | P a g e .All the respondents as for the location irrespective of their banks said that facilities provided by the banks are on the top of their priorities list while choosing the bank with which they want to do business.

iv. Security:- 64 | P a g e .

Convenience:- 65 | P a g e . v.

Advertisements iii. Family 66 | P a g e . What factors provides you awareness about the Bank and its Products: i. Q8.

Agents iv. ii. Q9. Friends Most of the customers said that they have been provided awareness about their bank through family and friends while only 10 % said that they got awareness about their bank through advertisement. These figure shows that how much the banks (mainly Public Sector Banks) depends on mouth publicity which shows great requirement of advertising their products through mass media. For what purpose you use a Current A/c: 67 | P a g e .

00 2 .00 1 .271 .036 2.000 0 use a Current A/c?- Others 68 | P a g e .74 .00 .035 1.00 2 .92 .000 .372 .000 0 use a Current A/c?- Payment to creditors For what purpose you 152 0 1.182 1 use a Current A/c?- Collection from debtors For what purpose you 152 0 1.24 . Working capital requirements v.000 .00 2 . Valid Missing Mean Mean Median Mode Deviation Variance Range For what purpose you 152 0 1.000 2. Others_______________________ Statistics N Std.030 2. Salary payments iii.073 1 use a Current A/c?- Operational Expenses For what purpose you 152 0 1. Payment to creditors iv.000 1.022 2. Operational expenses vi. Collection from debtors ii.138 1 use a Current A/c?- Working capital requirement For what purpose you 152 0 1.84 . i.00 .427 .00 2 .438 .00 1 . Error of Std.192 1 use a Current A/c?- Salary Payments For what purpose you 152 0 2.

7 25.6 83.9 no 140 92.0 For what purpose you use a Current A/c?.1 92.7 No 113 74.0 For what purpose you use a Current A/c?-Operational Expenses Cumulative Frequency Percent Valid Percent Percent Valid yes 12 7.4 no 127 83.0 Total 152 100.0 Total 152 100.Payment to creditors Cumulative Frequency Percent Valid Percent Percent Valid yes 152 100.7 25.0 100.6 100.9 7.Collection from debtors Cumulative Frequency Percent Valid Percent Percent Valid Yes 116 76.0 For what purpose you use a Current A/c?-Salary Payments Cumulative Frequency Percent Valid Percent Percent Valid Yes 39 25.1 100.3 76.0 Total 152 100.3 100.0 69 | P a g e .0 For what purpose you use a Current A/c?.Working capital requirement Cumulative Frequency Percent Valid Percent Percent Valid yes 25 16.0 100.4 16.9 7. For what purpose you use a Current A/c?.7 23.0 100.7 100.0 100.3 76.0 100.3 74.3 No 36 23.0 100.0 Total 152 100.4 16.

70 | P a g e . What features you look for in a Current A/c: i. Q10. A/c to A/c funds transfer within Bank Branches.

Others (Please Specify)__________________________. x. Cheque Book (No. Withdrawal and Cash Deposit at all Branches. 71 | P a g e . Mobile Banking. Minimum balance to maintain. ix. 24 hour Phone Banking. Net Banking . A/c to A/c funds transfer with other Bank A/c. vi. v. RTGS/NEFT Transactions. of leaves) vii. viii. Cash and Cheque pickup and Cash delivery. iii. ii. Demand draft facility / Pay order facility iv.

72 | P a g e .

040 1.88 . Valid Missing Mean Mean Median Mode Deviation Variance Range What features you look for 152 0 1.00 2 .95 .026 2. Statistics N Std.000 .000 0 Frequency Table 73 | P a g e .034 1.044 1 net banking.040 2.00 1 .00 1 . 152 0 1.00 2 .445 . Mobile banking Withdrawal and cash 152 0 1.105 1 and Cash delivery Minimum balance to 152 0 1.56 .000 .198 1 deposit at all branches Check book(no.210 .00 2 .92 .498 .27 .000 1.178 1 order facility 24 hour phone banking.271 .00 1 .036 1.324 .248 1 Cash and Cheque pickup 152 0 1.00 2 .000 2.00 2 .41 .022 2.00 1 .422 .000 0 RTGS/NEFT Transactions 152 0 1. of leaves) 152 0 1.00 1 .017 2.23 .000 .00 .00 .000 1.000 0 in a Current A/c?- A/c to A/c fund transfer within bank branches A/c to A/c fund transfer 152 0 1.494 .244 1 with other bank branches Demand draft facility/ Pay 152 0 1.073 1 maintain Other 152 0 2.00 . Error of Std.

0 100. net banking.0 Total 152 100.0 no 35 23.0 What features you look for in a Current A/c?-Demand draft facility/ Pay order facility Cumulative Frequency Percent Valid Percent Percent Valid yes 117 77. Mobile banking Cumulative Frequency Percent Valid Percent Percent Valid yes 7 4.6 4.0 74 | P a g e .6 4.0 100.0 100.0 Total 152 100.0 100.6 58.4 41.0 77.4 100.0 What features you look for in a Current A/c?-24 hour phone banking.0 Total 152 100.4 100.0 23.6 no 145 95.0 77.6 58.4 95.0 100.0 100. What features you look for in a Current A/c?-A/c to A/c fund transfer within bank branches Cumulative Frequency Percent Valid Percent Percent Valid yes 152 100.6 no 63 41.0 What features you look for in a Current A/c?-A/c to A/c fund transfer with other bank branches Cumulative Frequency Percent Valid Percent Percent Valid yes 89 58.

9 55.0 What features you look for in a Current A/c?-RTGS/NEFT Transactions Cumulative Frequency Percent Valid Percent Percent Valid yes 67 44.1 44.What features you look for in a Current A/c?-Withdrawal and cash deposit at all branches Cumulative Frequency Percent Valid Percent Percent Valid yes 111 73.0 73.8 11.0 100.0 100.2 100.9 100.0 100. of leaves) Cumulative Frequency Percent Valid Percent Percent Valid yes 152 100.0 What features you look for in a Current A/c?-Cash and Cheque pickup and Cash delivery Cumulative Frequency Percent Valid Percent Percent Valid yes 18 11.0 100.1 no 85 55.8 no 134 88.0 27.0 no 41 27.2 88.0 75 | P a g e .0 Total 152 100.0 Total 152 100.0 What features you look for in a Current A/c?-Check book(no.8 11.0 73.0 100.1 44.0 Total 152 100.0 100.

1 100.9 no 140 92.1 92.0 100.0 100.0 What features you look for in a Current A/c-Other Cumulative Frequency Percent Valid Percent Percent Valid no 152 100. What features you look for in a Current A/c?-Minimum balance to maintain Cumulative Frequency Percent Valid Percent Percent Valid yes 12 7.0 100.9 7.0 76 | P a g e .9 7.0 Total 152 100.

Syndicate Bank. Axis Bank. Others (please specify) _____________________ As the area of concentration was Central bank of India therefore there are a fixed number of customers which belong to Central Bnk of India and others include customers of banks like Punjab National Bank. ICICI Bank v. Q11. HDFC Bank iii. Central Bank of India ii. With which Bank do you have your Current Account: i. 77 | P a g e . Andhra bank etc. SBI iv.

30000-50000 vi. 10000-30000 v. Upto 10000 iv. The customers responded to be the lowest income group as they were not comfortable in disclosing their real information. Monthly Income (Rs) : i. 75000-100000 iii. 50000-75000 ii. 78 | P a g e . Above 100000 Most of the customers lied in the range of up to 30000 Rs per month but the reality is not so. Q21.

854.63 1.23 182.06 17.074.92 21.157.021. Comparative Analysis of financial performance of Central Bank of India (2009-2010) with other competitor banks: Last Price Market Cap.moneycontrol.667.35 296.50 26.671.55 8.202.302.42 137.856. cr.68 2.227.85 Indian Bank 246.96 3.877.79 Bank of Baroda 726.08 PNB 1. Net Interest Net Profit Total Assets (Rs.966.741.60 1.554.632.294.058.47 905.064.34 3.31 1. The market capitalization of Central Bank of India is lowest among its competitors which suggest that Central Bank of India has captured less market share as compared to its competitors which suggests that Central Bank of India have reached smaller community of people.03 70.466.70 19.741.432.161.10 12.06 1.751.587.71 Bank of India 403.60 13.555.170.393.35 6.com/competition/centralbankindia/comparison/CBO01 The share price of Central Bank of India is less then most of its other competitive banks as we can see from the table given above.15 21.82 8.05 964.01 Oriental Bank 353.38 7.) Income SBI 2. 79 | P a g e .857.13 233.91 3.698.30 Central Bank 152.70 18.121.99 84.00 7.15 8.905.92 9.92 195.377.33 278.316.852.49 15.55 16.35 10.572.75 16.35 8.031.476. The performance of Central Bank of India is found to be very good in terms of net profit earned but is having less profit as compared to it most competitors.25 111.43 264.74 IDBI Bank 122.09 Union Bank 324.07 274.213.166.058.25 157.431.46 Canara Bank 485.058.993.272.913.60 33.00 Corporation Ban 573.99 1.64 Source: http://www.

So the required steps should be taken to make an image of the bank in the eyes of potential customers. and customer meets. the question arises that what our bank is providing special to the potential customers to attract them and no answer comes out as: The Central Bank of India’s reputation is not the best in the market in terms of Customer Care and also The infrastructure of our branches is also not as good as the other private banks in the market. The customers are not Ill informed about the existence of central bank branches in their vicinity. There is a keen requirement of organizing special kind of finance fair and customer meets in order to increase popularity among the people like Educational loan fair. • Employee behavior towards Potential Customers The research suggests that the employees of branches have a cold behavior towards the potential customers even when they come by themselves to the bank. • Lack of Customer Awareness One of the problems faced by the Central Bank of India branches is the lack of customer (potential) awareness about the branch.Conclusion Reasons preventing potential customers to open Current Account with Central Bank of India: • Lack of Differentiation All other banks are providing the same kind of facilities and offers to the potential customers as the Central Bank of India offering. While the private banks use to search for the potential customers with the help of agents the potential customers are not even entertained properly during their visits to the Central Bank of India branches. • Lack of attractive schemes to the customers 80 | P a g e . So. Car Loan Fair.

So. There is a need of offering attractive and profitable schemes to the potential customers in order to persuade them towards the bank and to motivate them to work with Central Bank of India. the Central Bank of India should also start attractive schemes like Home loan in 7 days and priority banking. RECOMMENDATION Areas to be Focused by Central Bank of India (CBI): 81 | P a g e .

• Increase Customer Awareness
One of the biggest problems faced by all three branches is the customer
awareness about the location and existence of the CBI branch in the vicinity of
their area. In order to minimize this problem the branches should implement
marketing strategies in the local level like advertising on the local city channel
and promotional strategies

• Improve Customer Relations
The biggest problem faced by the current customers of the Central
Bank of India is the lack of interaction between the customers and the bank.
Almost every current customer has complained that there is absence of an
entity that can connect them with the bank and can increase a sense of relation
between customers and banks

• Improve Employee’s Behavior
Central Bank of India is facing the same problem that many of the
other PSU banks are facing these days that is the behavior of their employees
with the customers. The behavior of employees should be improved with the
help of workshops and training sessions

• Promotional Strategies
In order to increase the popularity and awareness of all three branches in
their respective regions among customer bank should use some promotional
strategies like

 Finance Mela/Fair (like car loan fair, Education loan fair or Housing
loan fair) to attract potential customers and

 Customer meeting sessions to hear about the problems being faced by
the current customers of the bank etc.

• Increase Security
All of the three branches i.e. Lawrence Road, Pitampura, and Nangloi are
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not having a security guard/gun man that makes many of the customers feel
insecure during withdrawal or deposit of big amounts in the branches which is
a very serious point. So, to increase customer faith in the bank appointment of
security guard/gun man should be done to these branches

83 | P a g e

LIMITATIONS

Any research or study always has some limitations under which it has to be undertaken. This too
is not an exception. These limitations are poised due to the environment, some external or some
internal. This study has been conducted with utmost consideration to the adequacy of data and
quality of information, though the reliability of few sources can’t be fully assured.

The main limitations of the study are:-

• The sample size is quite small which is unable to represent the whole population.

• The geographical spread of the sample during our survey was only confined to Delhi
Region (North India).

• Many of the respondents were not very comfortable in disclosing their personal details
during the survey.

• Very often the respondents don’t express their true feelings, in such case their need,
preference can’t be accessed correctly.

• It was found that many of the respondents were unaware of some of the new technology
that has been launch by banks or were not educated to use those services like internet
banking and phone banking.

84 | P a g e

• The non cooperative nature of many of the respondents acted as a main constraint during
our survey.

However, in spite of all these limitations best efforts have been taken to analyze and attain
the objective of our study.

FURTHER SCOPE OF RESEARCH

In today’s world where people have a busy life, good customer services and that is also in real
time has become a very important aspect. In a time where trends are set and dictated by
extremely pervasive private sector banks and where public sector banks are trying to match up
with the quality of service . More money then ever is being invested in public sector banks by
people as the global economy goes unstable.

The Market Research Project conducted has a wide scope of further research too since a large
segment of untapped potential market is still present in India. We have stressed upon a sample
where we have just found out the brand awareness quotient, the brand leader, and the perception
of the customers about different banking brands and the major players.

• The correlation between the perceived quality and celebrity endorsement can be explored.
• We have conducted our research mainly in the Delhi Region where people are more
conscious about the kind of customer service and facilities they are being provided than
perhaps tier two cities which are also big markets but where customer characteristics and
wants may differ.
• The correlation between the banks, their services and different products offered by them
has not been explored.
• In our survey we have concentrated more on the businessmen and industrialists where
there is space for other slot of people too. Further research can be conducted taking
enough samples for better results.
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References 1. Comparison with competitors 86 | P a g e .com/Articles/PopUp.aspx?status=2&menu_id=128 2.aspx?status=2&menu_id=149 4.in/site/MainSite. Corporate Mission Source: https://www.com/finance/bank/current-account. • We have kept our focus on mainly current account facility provided by the Central Bank of India and its comparative study with the other rival banking institutions where the scope can be wide enough to cover every aspect of different products offered by the banks.iloveindia.livemint.aspx?status=2&menu_id=148 3. Organization Profile Source: https://www. These brands offer an array of additional features.in/site/MainSite.in/account. Current Account Facility Source: http://www.asp Source: http://www.centralbankofindia.co.livemint.in/site/MainSite.aspx?id=5d987a8c-35bf-11df- 9354 000b5dabf613 6.com/Articles/PopUp. Literature Review Source: http://www.livemint. • Recently many new brands have also emerged in the markets which were not a part of our study.iba.org. Corporate Vision Source: https://www.co.aspx?id=b9b67c60-f3b6- 11de-8a00-000b5dabf613 Source:http://www.com/2010/06/18163716/Central-Bank-of-India- to-raise. An in-depth study of Central Bank of India with any one rival brand could have been conducted.html 5.co.centralbankofindia.html Source:http://www.centralbankofindia.

com/competition/centralbankindia/comparison/CBO01 87 | P a g e . Source: http://www.moneycontrol.