CHAPTER-I

INTRODUCTION OF THE STUDY

I.HISTORY OF PRIVATE-SECTOR BANKS IN TAMILNADU

All the banks in India were private banks, which were founded in the pre-

independence era to carter to the banking needs of the people. In 1921, three major

banks i.e., Banks of Bengal, Bank of Bombay, and Bank of Madras, merged to form

Imperial Bank of India. In 1935, the Reserve Bank of India (RBI) was established and

it took over the central banking responsibilities from the imperial Bank of India,

transferring commercial banking functions completely to IBI. In 1955, after the

declaration of first-five year plan, Imperial Bank of India was subsequently

transformed(SBI).

Following this, occurred the nationalization of major banks in India on 19 July

1969. The Government of India issued an ordinance and nationalized the 14 largest

commercial banks of India, including Punjab National Bank (PNB), Allahabad Bank,

Canara Bank, Central Bank of India, etc. Thus, public sector banks revived to take up

leading role in the banking structure. In 1980, the GOI nationalised 6 more

commercial banks, with control over India.

In 1994, the Reserve Bank of India issued a policy of liberalization to license

limited number of private banks, which came to be known as New Generation tech-

savvy banks. Global Trust Bank was, thus, the first private bank after liberalization; it

1
was later amalgamated with Oriental Bank of Commerce (OBC). Then Housing

Development Finance Corporation Limited (HDFC) became the first (still existing) to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a

bank in the private sector.

The private-sector banks in India represent part of the Indian banking sector

that is made up of both private and public sector banks. The "private-sector banks" are

banks where greater parts of stake or equity are held by the private shareholders and

not by government.

Old private-sector banks

The banks, which were not nationalized at the time of bank nationalization that

took place during 1969 and 1980, are known to be the old private-sector banks. These

were not nationalized, because of their small size and regional focus. Most of the old

private-sector banks are closely held by certain communities their operations are

mostly restricted to the areas in and around their place of origin. Their Board of

directors mainly consists of locally prominent personalities from trade and business

circles. One of the positive points of these banks is that, they lean heavily on service

and technology and as such, they are likely to attract more business in days to come

with the restructuring of the industry round the corner.

New private-sector banks

The banks, which came in operation after 1991, with the introduction of

economic reforms and financial sector reforms are called "new private-sector banks".

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Banking regulation act was then amended in 1993, which permitted the entry of new

private-sector banks in the Indian banking s sector. However, there were certain

criteria set for the establishment of the new private-sector banks, some of those

criteria being: #the bank should have a minimum net worth of Rs. 200 crores.

 The promoters holding should be a minimum of 25% of the paid-up capital.

 Reliance Capital, India Post, Larsen & Toubro, Shriram Transport Finance are

companies pending a banking license with the RBI under the new policy, while

IDFC & Bandhan were given a go ahead to start banking services for 2015.

 Within 3 years of the starting of the operations, the bank should offer shares to

public and their net worth must increased to 300 crores.

At present, Private Banks in India includes leading banks like ICICI Banks,

ING Vysya Bank, Jammu & Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank,

SBI Commercial and International Bank, etc. Undoubtedly, being tech-savvy and full

of expertise, private banks have played a major role in the development of Indian

banking industry. They have made banking more efficient and customer friendly. In

the process they have jolted public sector banks out complacency and forced them to

become more competitive.

II.LOAN

In finance, a loan is a debt provided by one entity (organization or individual) to

another entity at an interest rate, and evidenced by a note which specifies, among

other things, the principal amount, interest rate, and date of repayment. A loan entails

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the reallocation of the subject asset(s) for a period of time, between the lender and the

borrower.

In a loan, the borrower initially receives or borrows an amount of money, called

the principal, from the lender, and is obligated to pay back or repay an equal amount

of money to the lender at a later time.

The loan is generally provided at a cost, referred to as interest on the debt, which

provides an incentive for the lender to engage in the loan. In a legal loan, each of these

obligations and restrictions is enforced by contract, which can also place the borrower

under additional restrictions known as loan covenants. Although this article focuses on

monetary loans, in practice any material object might be lent. Acting as a provider of

loans is one of the principal tasks for financial institutions. For other institutions,

issuing of debt contracts such as bonds is a typical source of funding.

DEFINITION

An arrangement in which a lender gives money or property to a borrower, and

the borrower agrees to return the property or repay the money, usually along with

interest, at some future point(s) in time. Usually, there is a predetermined time for

repaying a loan, and generally the lender has to bear the risk that the borrower may

not repay a loan (though modern capital markets have developed many ways of

managing this risk)

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 III.TYPES OF LOANS

Loan types vary because each loan has a

specific intended use. They can vary by length

of time, by how interest rates are calculated,

by when payments are due and by a number of

other variables.

STUDENT LOANS

Student loans are offered to college students and their families to help cover the

cost of higher education. There are two main types of student loans: those offered by

the federal government, and those offered by private lenders. Federally funded loans

are better, as they typically come with lower interest rates and more borrower-friendly

repayment terms.

MORTGAGES

Mortgages are loans distributed by banks to allow consumers to buy homes

they can’t pay for upfront. A mortgage is tied to your home, meaning you risk

foreclosure if you fall behind on loan payments. Mortgages have among the lowest

interest rates of any loans.

AUTO LOANS

Like mortgages, auto loans are tied to your property. They can help you afford

a vehicle, but you risk losing the car if you miss payments. This type of loan may be

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distributed by a bank or by the car dealership directly. While loans from the dealership

may be more convenient, they often cost more overall.

PERSONAL LOANS

Personal loans can be used for any personal expenses and don’t have a

designated purpose. This makes them an attractive option for people with outstanding

debts, such as credit card debt, who want to reduce their interest rates by transferring

balances. Like other loans, personal loan terms depend on your credit history.

LOANS FOR VETERANS

The Department of Veterans Affairs (VA) has lending programs available to

veterans and their families. With a VA-backed home loan, money does not come

directly from the administration. Instead, the VA acts as a co-signer and effectively

vouches for you, helping you earn higher loan amounts with lower interest rates.

SMALL BUSINESS LOANS

Small business loans are granted to entrepreneurs and aspiring entrepreneurs to

help them start or expand a business. The best source of small business loans is the

U.S. Small Business Administration (SBA), which offers a variety of loan types

depending on each business’s needs.

PAYDAY LOANS

Payday loans are short-term, high-interest loans designed to bridge the gap

from one paycheck to the next. They are predominantly used by repeat borrowers

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living paycheck to paycheck. Because of the loans’ high costs, the government

strongly discourages their use.

BORROWING FROM RETIREMENT AND LIFE INSURANCE

Those with retirement funds or life insurance plans may be eligible to borrow

from their accounts. This option has the benefit that you are borrowing from yourself,

making repayment much easier and less stressful. However, in some cases, failing to

repay such a loan can result in tax consequences.

CONSOLIDATED LOANS

A consolidated loan is a loan meant to simplify your finances. It is a loan that

pays off all or several of your other loans and debts, particularly credit card debt. It

means fewer monthly payments and lower interest rates. Consolidated loans are

typically in the form of second mortgages or personal loans.

BORROWING FROM FRIENDS AND FAMILY

Borrowing money from friends and relatives is an informal type of loan. This

isn’t always a good option, as it may strain a relationship. To protect both parties, it’s

a good idea to sign a basic promissory note.

COMPUTER LOANS

One of the different bank loans types are computer loans. There are many banks

which offer loans to purchase new computers from major companies. The loan check

is given to the computer company, and the borrower chooses goods as approved and

then makes payments.

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EDUCATION LOANS

This is actually a handy tool for parents who not planned well for their kid’s

higher education. For a detailed view on this visit my earlier post “Know all about

Education Loan features“.

GOLD LOAN

This was one of the easiest and fastest ways of loan when gold rate was at its

peak. But currently lot of lenders may not feel it better collateral due to falling in gold

price, especially gold loan companies. Recently RBI banned any gold loans against

gold ETFs and gold mutual funds. Even though it forms easiest and fastest way of

getting loan but better to look for risks involved in it, especially when you are dealing

with NBFCs.

CONSUMER ATTITUDE

Social Scientists, feel that attitude is an emotionalized predisposition to

respond positively or negatively to an object or class of objects. Attitude affects both

perception and behaviour. Attitudes are always learned through experience. It interacts

with perception, thinking, feeling and reasoning. The knowledge of consumer attitude

can provide a sound basis for improving products, developing and evaluating the

promotional programs.

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ATTITUDE

An attitude is a state of mind or feelings. It may be described as a person’s

emotional feelings, action, tendencies towards some idea or object.

Attitude is a mental or neutrolstate of readiness organized through experience

exerting a directive or dynamic influence upon the individual response to all objects

and situations with which it is related.

People have attitude towards and everything that is clothes, drama, food,

religion, community etc.; if a person has an attitude towards a product it is difficult to

change his attitude towards a product it is difficult to change his attitude because

person attitudes settle into a consistent pattern. Attitude made people to behave in a

fairly consistent manner towards certain objects. It includes people to behave in some

way so far explaining attitudes of people/consumer are very important.

CUSTOMER PERCEPTION

A marketing concept that encompasses a customer's impression, awareness

and/or consciousness about a company or its offerings. Customer perception is

typically affected by advertising, reviews, public relations, social media, personal

experiences and other channels.

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DEFINITION

The process by which an individual selects, organizes, and interprets stimuli

into a meaningful and coherent picture of the world.
-Schiff man

STATEMENT OF THE PROBLEM

Thoothukudi being a growing city in Tamilnadu is rapidly moving towards the

upcoming technology. In recent years the desire and thirst towards getting the loans

from banks is hastily increasing and to be aware about it is very important. The

foremost reason is to analyse the relationship between customers attitude and

perception towards getting loans in a private sector banks.

OBJECTIVES OF THE STUDY

1. To know the profile of the private sector banks and private sector loans.

2. To study about the customers satisfaction level and their attitude towards in

customer loans in private sector banks.

3. To study about the opinion about getting the loans in private banks.

4. To examine and understand the attitude of customers and to identify the

factor that motivates them to select private bank for loan.

5. To find out what additional needs are demanded by customers.

6. To understand the socio-economic categories of customer’s satisfaction

related to loan in private banks.

7. To get the suggestions for improvement or changes in the services of banks.

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 RESEARCH DESIGN AND METHODOLGY

SOURCE OF DATA

The data required for this survey was collected from the both sources of data.

 Primary Data

 Secondary Data

Primary Data

The primary data have been collected through a well- designed interview

questionnaire schedule constructed for the purpose of the study. The schedule has

been designed keeping in view the objective of the survey.

Secondary Data

The secondary data required for the study was collected from books, journals,

magazines, newspapers etc, by the researchers.

SAMPLE SIZE

The sample size of 120 was decided and the respondents were selected from

Thoothukudi city.

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SAMPLE DESIGN

The universe comprises of “Customer Loans in Private Sector Banks in

Thoothukudi”.

Under the project survey the respondents are as per the convenience of the

researcher such as nearness, easy availability of data etc, so it is named as

“Convenience Sampling”. Time and other constraints force the researcher to choose a

sample of 120 respondents for the study.

STATISTICAL TOOLS

 Most of the analysis is based on the response shown in the form of frequency

table.

 To analyse the customer personal data in Chi-Square test is applied.

 To study the level of satisfaction, 5 point scaling techniques is applied.

PREPARATION ON SCHEDULE TO BE ADMINISTRATED WITH

CUSTOMER OF LOANS IN PRIVATE SECTOR BANKS.

The draft schedule for the present study has three sections. The first section

contains questions on the personal details of the respondents and the second section

contains related questions of the basis of customer loan. Lastly third section contains

related questions on the basis of banks.

The specimen of the schedule used for the present study shown in Appendix-A.

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HYPOTHESIS

The present study aims at testing the following null hypothesis relating the

objectives of the study,

HO1: There is no significant relationship between Annual Income of the

respondents and their opinion about the Borrowing amount of Loan.

HO2: There is no significant relationship between Occupation of the respondents

and their opinion about the Types of Loans chosen by the respondents.

SCOPE OF THE STUDY

The study has a clear insight about the customer’s loan attitude relating to the

private sector banks. This study is totally relevant to the present day problems and

needs of the loans in a private sector banks.

FIELD WORK AND COLLECTION OF DATA

Field work for the present study has been carried on personally by the

researcher himself. The survey was conducted continuously during June-October

2015.

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COVERAGE PERIOD

The primary data collected through Interview Schedule covers a period 5

months.

DATA PROCESSING

After completing the collection of data, editing of the data has been done. For

further processing and data tabulation, the data have been computerized by the

researcher.

LIMITATION OF THE STUDY

Every study suffers from errors and limitations. The following are the

important-limitations for the present study.

 The study is subjected to some respondent bias.

 The time was a limiting factor to go through a detailed study.

 The study is restricted to convenient place around Thoothukudi city only

and hence the results and suggestions cannot be applied to other places.

 The nature of the study being descriptive, the result may not be vouched

to the reliable but is rather comprehensive.

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CHAPTER SCHEME

1. The First chapter deals with the Introduction of the Private Sector

Banks, Types of Loans, Objectives, Scope of the study, Research

Methodology and Limitation of the study.

2. The Second chapter gives details about Profile of study area and Types

of Private Banks.

3. The Third chapter contains a critical Analysis and Interpretation of data.

4. The Fourth chapter summarizes the Findings and Suggestions of the

study.

5. The Fifth and last chapter gives the Conclusion of the study.

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 Chapter-ii

Profile of the study

HISTORY OF THOOTHUKUDI

Thoothukudi also known as Tuticorin is a city and is now a corporation.

The city is also known as "Pearl City". It is a sea port city which serves

southern Tamil Nadu including the inland cities of Coimbatore, Madurai and

Tirunelveli. It is one of the oldest cities in India with the history dating back to the 6th

century BCE. Thoothukudi is the headquarters of Thoothukudi District.

Tuticorin name was used by Dutch people who were here, and now it’s called

"Tuticorin" in English and "Thoothukudi" in Tamil. Tuticorin (Thoothukudi) is also

known by the name 'Thiru Mandira Nagar'. It is also called as "Sea Gateway of Tamil

Nadu" Thoothukudi is part of the Pearl Fishery Coast, and is known for its pearl

fishing and shipbuilding industries

HISTORY

Thoothukudi is traditionally known for its pearl fishery and shipbuilding. It

was the sea port of the Pandyan kingdom. Thoothukudi was the stronghold of the

Paravas, a community from the lineage of Pandyan kingdom that still continues to be

a strong base of this community. This community also claims the status of uncrowned

kings of the land holding a sway over power. But recently, there is a decline in the

community's strong hold since most of its youth are employed abroad. The Paravas

communities have a unique way of living; their cultural demarcations are stronger

16
than that of the other communities in that region. The traditional old houses of the

Paravas in the city are unique; they are built out of Burmese teak wood in both

Victorian style and Chettinad style. Another community in this region is the Nadars,

the southern trading community. Thoothukudi became the center of the Indian

independence movement in the early 20th century, with such leaders as the poet

Subramanya Bharathy, Kattabomman, and V.O. Chidambaram Pillai.

In 1906, one of the greatest freedom fighters of India, Mr. V.O. Chidambaram

Pillai, launched the first Swadeshi Ship “S.S Gaelia”. The major harbour of

Thoothukudi is well known as a pearl diving and fishing center. Thoothukudi was

founded by the Portuguese in 1548, captured by the Dutch in 1658, and ceded to the

British in 1825. (Courtesy - The Columbia Encyclopedia, Sixth Edition. 2001) The

lighthouse built in 1842 marked the beginning of the history of Thoothukudi harbour

development.

LOCATION

Thoothukudi is in South India about 540 km south west of Madras (Chennai)

and is geographically located in the Gulf of Mannar. It is in south and southwest by

the district of Tirunelveli, west and northwest by the district of Virudhunagar and

north by the district of Ramanathapuram. The total area of this district is 4621 km².

The administrative headquarters is an urban agglomeration and also one of the taluk

headquarters within the district.

CLIMATE

Tropical climate. Hot and Humid.

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 PORT

After Independence, the minor Port of Tuticorin

witnessed a flourishing trade and handled a

variety of cargo meant for the neighboring

countries of Sri Lanka, Maldives etc, and the

coastal regions of India. To cope with the

increasing trade through Tuticorin, the

Government of India sanctioned the construction of an all-weather Port at Tuticorin.

On July 11, 1974, the newly constructed Tuticorin Port was declared as the 10th major

port. In 1st April 1979, the former Tuticorin minor Port and the newly constructed

Tuticorin major Port were merged and the Tuticorin Port Trust was constituted under

the Major Port Trusts Act, 1963

MAJOR PRIVATE SECTOR BANKS IN TAMILNADU IS AS

FOLLOWS,

TAMILNAD MERCANTILE BANK LIMITED

Tamilnad Mercantile Bank Limited (TMB) is a bank headquartered at

community. For the financial year 2011-2012, the bank reported a net profit of

4845.3 million. The bank currently has 400 full branches throughout India, ten

regional offices and eleven Extension Counters, two Mobile Banking branches, six

central processing centres, one Service Branch, three Currency Chests and 777

Automated Teller Machines (ATM).TMB has plans to open branches in Colombo,

Singapore, and Malaysia to serve the Tamil community living in those countries.

18
 The bank has been growing strongly throughout South India and opening new

branches. TMB is also preparing for an Initial public offering in 2013.TMB was rated

as the fastest growing Indian Bank for the five years from 2007 to 2012. It was also

rated as the Best Bank in the years 2010, 2011 and 2012, due to its fast and robust

growth. During the years of 2012 and 2013 it did total business of 370 billion rupees.

The bank's planned outlay for the financial year is to reach business worth 500 billion

rupees, add an additional 150 branches, and increase its ATMs to 600. The bank is

expanding rapidly across Mumbai, Delhi, Kolkata, and Gujarat and is on the verge of

setting up branches in Dubai, Kuwait and Doha before mid-2014. The growth model

of the bank is said to be unique in India; TMB is often referred to as the Bank of

America of India. The bank on September, 2013 won the ASSOCHAM’s Best Private

Sector Bank 2013 award.

HISTORY

The history of Tamilnad Mercantile Bank dates back to 1921. The idea to

establish a bank for the Nadar business community was first proposed at the annual

meeting of the Nadar Mahajana Sangam held at Tuticorin in 1920. The bank was

originally registered on 11 May 1921 as Nadar Bank Limited under the Indian

Companies Act, 1913. M.V.Shanmugavel Nadar was elected as the first chairman on 4

November 1921. The bank was opened to the public by T.V.Balagurusamy Nadar on

11 November 1921 in Ana Mavanna Building at South Raja Street, Tuticorin. The

bank was registered on 11 May 1921 as "The Nadar Bank Ltd".

In 1937 Nadar Bank opened a branch in Ceylon, but by 1939 it had closed it.

By 1947 the bank had only four branches: Tuticorin, Virudhunagar, Madurai and

19
Sivakasi. The bank opened its first Indian branch outside the state of Tamil Nadu in

1976 at Bangalore.

The first new fully computerized branch opened at WGC Road, Tuticorin on 9

December 1984. The bank had established TMB. The Bank has launched its ATM

Card on 11 November 2003.

VARIOUS TYPES OF LOAN UNDER MSME (Micro and Small Medium

Enterprises)

 Salt Manufacturing Loan

 Godown Construction Loan

 Sea Food Credit

 Dhall Mill Loan

 Oil Mill Loan

 Rice Mill Loan

 Contractor Loan

 Retail Traders Loan

 Wholesale Traders Loan

 Import Credit & Export Credit

 Hotel Loan

 Truck/Bus Loan

KARUR VYSYA BANK

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 Karur Vysya Bank is a private-sector

Indian bank, headquartered in Karur in Tamil

Nadu. It was set up in 1916 by M. A. Venkatarama

Chettiar and Athi Krishna Chettiar. The bank also

offers Internet Banking and Mobile Banking

facilities to its customers.

HISTORY

'The Karur Vysya Bank Limited', popularly known as KVB was set up in 1916

by Mr M.A Venkatarama Chettiar and Mr Athi Krishna Chettiar, to capitalise on the

previously unexploited market of traders and agriculturists in and around Karur, a

town in Tamil Nadu. Though the bank started with a seed capital of 1 lakh, as with

most banks, the seed capital has grown, as have the services sold. The bank is

managed and guided by the Board of Directors drawn from different fields.

Realizing that there is more money elsewhere, the bank expanded out of Karur

and established approximately 563 branches in other States and Union Territories in

order to gain a pan-India presence.

Shri K.K. Balu was appointed as an Additional Director of the Bank on 27

January. It has 645 branches and network of 1675 ATM's as on JUNE-2015. KVB

total business till March 2015 was around 82000 crores

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ICICI Bank

ICICI Bank is an Indian multinational banking and financial services company

headquartered in Mumbai, Maharashtra, India. As of 2014, it is the second largest

bank in India in terms of assets and market capitalization. It offers a wide range of

banking products and financial services for corporate and retail customers through a

variety of delivery channels and specialized

subsidiaries in the areas of investment banking,

life, non-life insurance, venture capital and asset

management. The Bank has a network of 4,050

branches and 12,642 ATMs in India, and has a

presence in 17 countries including India.

ICICI Bank is one of the Big Four banks of India, along with State Bank of India,

Punjab National Bank and Bank of Baroda. The bank has subsidiaries in the United

Kingdom and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri

Lanka, Qatar, Dubai International Finance Centre and China; and representative

offices in United Arab Emirates, South Africa, Bangladesh, Malaysia and Indonesia.

The company's UK subsidiary has also established branches in Belgium and Germany.

HISTORY

ICICI's branch located in Knights bridge, London. ICICI Bank was established

by the Industrial Credit and Investment Corporation of India (ICICI), an Indian

financial institution, as a wholly owned subsidiary in 1994. The parent company was

22
formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and

public-sector insurance companies to provide project financing to Indian industry. The

bank was initially known as the Industrial Credit and Investment Corporation of India

Bank, before it changed its name to the abbreviated ICICI Bank. The parent company

was later merged with the bank.

ICICI Bank launched internet banking operations in 1998. ICICI's shareholding

in ICICI Bank was reduced to 46 percent, through a public offering of shares in India

in 1998, followed by an equity offering in the form of American Depositary Receipts

on the NYSE in 2000. ICICI Bank acquired the Bank of Madura Limited in an all-

stock deal in 2001 and sold additional stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial

institution offering only project finance to a diversified financial services group,

offering a wide variety of products and services, both directly and through a number

of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian

company and the first bank or financial institution from non-Japan Asia to be listed on

the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on the New York

Stock Exchange with its five million American depository shares issue generating a

demand book 13 times the offer size.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved

the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI

Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI

Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January

23
 2002, by the High Court of Gujarat at

Ahmadabad in March 2002 and by the

High Court of Judicature at Mumbai and

the Reserve Bank of India in April 2002.

In 2008, following the 2008 financial

crisis, customers rushed to ICICI ATMs

and branches in some locations due to rumors of adverse financial position of ICICI

Bank. The Reserve Bank of India issued a clarification on the financial strength of

ICICI Bank to dispel the rumors.

HDFC BANK

HDFC Bank Limited is an Indian banking and financial services company

headquartered in Mumbai, Maharashtra. Incorporated in 1994, it is the fifth largest

bank in India as measured by assets. It is the largest private sector bank in India by

market capitalization as of February 2014. The bank was promoted by the Housing

Development Finance Corporation, a premier housing finance company (set up in

1977) of India. According to the Brand Trust Report 2014, HDFC was ranked 32nd

among India's most trusted brands. HDFC was ranked 45th on the list of top 50 Banks

in the world in terms of their market capitalization.

As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal

year 2012-13, the bank has reported net profit of INR 69 billion, up 31% from the

previous fiscal year. Its customer base stood at 28.7 million customers on 31 March

2013

24
 LAKSHMI VILAS BANK

Lakshmi Vilas Bank was

founded in 1926 by a group of seven

progressive businessmen of Karur

under the leadership of Shri V.S.N.

Ramalinga Chettiar. Their objective was to cater to the financial needs of people in

and around Karur who were occupied in trading businesses, industry and agriculture.

The bank was incorporated on November 3, 1926 under the Indian Companies Act,

1913, and obtained the certificate to commence business on November 10, 1926.

Subsequent to introduction of the Banking Regulations Act, 1949 and Reserve Bank

of India as the regulator for the banking sector, the bank obtained its banking license

from RBI on 19,June 1958, and on 11, August 1958 it became a ‘scheduled

commercial bank’ signifying capability to operate as a full-fledged commercial bank.

Lakshmi Vilas Bank saw considerable expansion of its branch network during

the period 1961-65, when the bank took over nine other banks. From 1974, the bank

started expanding the branch network beyond Tamil Nadu to benefit from

opportunities in the pan-Indian market. Thus, branches were established in the

neighboring states of Andhra Pradesh, Karnataka and Kerala, important financial

centres such as Mumbai, New Delhi and Kolkata as well as in other significant

business centres in Maharashtra, Gujarat and Madhya Pradesh. Meanwhile, the bank

attained the status of Authorized Dealer in foreign exchange in 1976 enabling it to

provide full range of services to customers engaged in international trade and to

25
 overseas travelers. Mechanization was

introduced in the Administrative Office as early

as 1977, and data processing and

computerization began in right earnest in 1993

by the bank’s own in-house team.

Implementation of Core Banking Solution (CBS) was started in October 2006, and all

of the bank’s branches were migrated to CBS by March 2008.

AXIS BANK

Axis Bank Limited (formerly UTI Bank) is the third largest private sector

bank in India. It offers financial services to customer segments covering Large and

Mid-Sized Corporate, MSME, Agriculture and Retail Businesses. Axis Bank has its

registered office at Ahmedabad.

HISTORY

UTI Bank opened its registered office in Ahmedabad and corporate office in

Mumbai in December 1993. The first branch was inaugurated on 2 April 1994 in

Ahmedabad by Dr. Manmohan Singh, then Finance Minister of India. UTI Bank

began its operations in 1994, after the Government of India allowed new private banks

to be established. The Bank was promoted in 1993 jointly by the Administrator of the

Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General

Insurance Corporation, National Insurance Company, The New India Assurance

Company, The Oriental Insurance Corporation and United India Insurance Company.

26
 In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank,

but the Reserve Bank of India (RBI) withheld approval and nothing came of this. In

2004 the RBI put Global Trust into moratorium and supervised its merger into

Oriental Bank of Commerce.UTI Bank opened its first overseas branch in 2006

Singapore. That same year it opened a representative office in Shanghai, China.

UTI Bank opened a branch in the Dubai International Financial Centre in

2007. That same year it began branch operations in Hong Kong. The next year it

opened a representative office in Dubai.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed

Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis

Bank opened representative offices in Abu Dhabi.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking

operations. Axis Bank UK has a branch in London. In 2014, Axis Bank upgraded its

representative office in Shanghai to a branch.

DHANLAXMI BANK

Dhanlaxmi Bank Ltd is an old private sector bank headquartered in Thrissur

City, Kerala, India.

HISTORY

27
 Dhanalakshmi Bank Ltd was

incorporated on 14 November 1927 at

Thrissur city, Kerala with a capital of

11,000 and 7 employees. It became a

Scheduled Commercial Bank in the year

1977. Today it has 280 branches and 396 ATMs spread over the states of Kerala,

Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Maharashtra, Gujarat, Delhi,

West Bengal, Madhya Pradesh, Punjab, Uttar Pradesh, Rajasthan, Chandigarh, Goa,

and Haryana.

The bank has changed its name from Dhanalakshmi Bank to Dhanlaxmi Bank

on 10 August 2010.

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala by a group

of ambitious and enterprising entrepreneurs. Over the 88 years that followed,

Dhanlaxmi Bank with its rich heritage has earned the trust and goodwill of clients. It

is due to our strong belief in the need to seek innovation, deliver best service and

demonstrate responsibility that we have grown from strength to strength. Be it in the

number of customers, the scale of business, the breadth of our product offerings, the

banking experience we offer or the trust that people invest in us. With more than 678

touch points across India at your service; our focus has always been on customizing

services and personalizing relations.

28
 FEDERAL BANK

Federal Bank Limited is a major

Indian commercial bank in the private

sector, headquartered at Alva, Kochi, and

Kerala. It is the fourth largest bank in

India in terms of capital base. As of 29

October 2014, Federal Bank has 1247 branches spread across 24 states and 1498

ATMs across the country. Its balance-sheet stood at Rs 1.03 trillion as of end March

2014 and it net profit stood at Rs 839 crores for the full fiscal year.

HISTORY

In 1931, Travancore Federal Bank began operations at Pattamukkil

Varattisseril house near Nedumpuram, near Thiruvalla, Kerala. The home functioned

as the bank office for nearly 15 years. The 14 founders included Pattamukkil

Varattisseril Oommen Varghese, his brothers Oommen Chacko, Oommen Kurian, and

Oommen George, and Kavumbhagam Mundapallil Lukose. Oommen Varghese was

the chairman and Oommen Chacko was the manager. After the bank had functioned

for nearly 10 years, the bank's day-to-day operations had to be stopped due to Oomen

Chacko's ill-health.

A lawyer from Perumbavoor named K.P.Hormis, and his acquaintances,

bought the bank and took over the management. In 1945 they moved the bank's

registered office to Aluva and Hormis became the Managing Director. In 1947, the

bank's name was shortened from Travancore Federal Bank to Federal Bank.

29
 Between 1963 and 1970, Federal Bank took over Chalakudy Public Bank

(est. 20 July 1929 in Chalakudy), Cochin Union Bank (est. 1963) in Trichur, Alleppey

Bank (est. 1964; Alappuzha), St. George Union Bank (est. 1965) in Puthenpally, and

Marthandam Commercial Bank (est. 1968) in Thiruvananthapuram. In 1970, Federal

Bank became a scheduled commercial bank and came out with its initial public

offering in 1994.

In January 2008, Federal Bank opened its first overseas representative office

in Abu Dhabi. In August 2013; Federal Bank introduced Fed Book, the first electronic

passbook launched by any bank in India. Fed Book is a mobile app through which

customers can view their passbook details.

In April 2015, Federal Bank posted its highest ever net profit at Rs 1005.75

crores for the fiscal 2014-15. The net profit grew 20% during the year which saw the

deposits and advances of the bank outgrow that of the industry by 40%. In August

2015, creating history, Federal Bank launched India’s first Mobile App for Bank

Account Opening. Bank has introduced this unique facility of Mobile based Bank

Account Opening as an upgrade to Fed Book, its e-Passbook App. With the new

avatar of Fed Book, anyone having an Aadhaar Card and PAN Card, be it from rural

or urban centres, rich or poor, youth or aged, can now open a Savings Bank Account

and get their Account Number instantly using a mobile from anywhere at any time.

Further, the account can also be funded with an initial remittance through online fund

transfer up to a maximum amount of Rs. 10000. To open an account, one has to just

download Fed Book in their Mobile and follow 3 easy steps- that of taking a selfie,

scanning Aadhaar and PAN Card. The App verifies the Aadhaar real time and opens

30
 the account on the click of a button. Once

the account is opened, the App turns itself

into the digital passbook for the customer.

The App is currently available on Android

and iOS phones and will soon be available

in Windows and Blackberry phones.

KARNATAKA BANK

Karnataka Bank is a major banking institution based in the coastal city of

Mangaluru in Karnataka, India. The Reserve Bank of India has designated Karnataka

Bank as an A1+-class scheduled commercial bank.

The bank now has a national presence with a network of some 678 branches

and above 1000 ATM's across 21 states and two Union territories. It has over 6084

employees and 6.7 million customers, including farmers and artisans in villages and

small towns throughout the country. Its shares are entirely privately owned by some 1,

29,862 shareholders.

HISTORY

Karnataka Bank was incorporated on 18 February 1924, and commenced

business on 23 May 1924. Its founders established it at Mangalore, a coastal town in

the Dakshina Kannada district of Madras Presidency. Among the founders, who

created the bank to serve the South Kanara region, was B. R. Vysaray Achar. Another

31
important personality associated with the bank was K. S. N. Adiga, who served as

Chairman from 1958 to 1979.

In the 1960s Karnataka Bank acquired three smaller banks. In 1960 Karnataka

Bank acquired the Sringeri Sharada Bank, which was established in 1942 and which

had four branches when Karnataka acquired it. Four years later, Karnataka Bank took

over the assets and liabilities of the Chitradurga Bank (also known as Chitladurg

Bank), which was established in 1868 in Mysore State and was the oldest bank in

Mysore. Lastly, in 1966 Karnataka Bank took over the assets and liabilities of the

Bank of Karnataka, in Hubli. Bank of Karnataka had been established in 1946 and

had opened one branch in Belgaum in 1947. At the time of this acquisition, Bank of

Karnataka had 13 branches.

In 2000, Karnataka Bank signed a memorandum of understanding with Infosys

Technologies to develop a core-banking solution called FINACLE. Over 221 branches

were networked up to March 31, 2004. The main motto of this programme is

"Anytime/Anywhere banking". In 2002, the bank concluded a pact with Corporation

Bank for sharing its ATMs. A year later, the bank introduced the Money plant card

that allows customers to withdraw money from any of their Karnataka bank accounts.

In September 2003, the bank shifted its head office from Kodialbail to Kankanady

32
 YES BANK

Yes Bank is India's fourth largest private

sector Bank, co-founded by Rana Kapoor in 2004

Yes Bank is the only Greenfield Bank license

awarded by the RBI in the last two decades. Yes

Bank is a “Full Service Commercial Bank”, has steadily built a Corporate, Retail &

SME Banking franchise, Financial Markets, Investment Banking, Corporate Finance,

Branch Banking, Business and Transaction Banking, and Wealth Management

business lines across the country.

Yes Bank, incorporated in 2004 by Rana Kapoor and Late Ashok Kapur, is a

new age private sector bank. Since inception Yes Bank has fructified into a Full

Service Commercial Bank that has steadily built Corporate and Institutional Banking,

Financial Markets, Investment Banking, Corporate Finance, Branch Banking,

Business and Transaction Banking, and Wealth Management business lines across the

country, and is well equipped to offer a range of products and services to corporate

and retail customers.

YES BANK offers a full–range of client–focused corporate banking services,

including working capital finance, specialized corporate finance, trade and

transactional services, treasury risk management services, investment banking

solutions and liquidity management solutions among others to a highly focused client

base.

33
 The bank is part of global thought leadership forums like the Clinton Global

Initiative (CGI), Triple Bottom Line Investing (TBLI) and Tallberg Forum. Recently,

it became the first Indian Bank to become a signatory with the United Nations

Environment Programme (Financial Initiative).

As part of the differentiated strategy, Yes Bank has had a strong focus on

Development Banking, as is evident from the cutting–edge work that the Bank has

done in the area of Food & Agribusiness, Infrastructure, Microfinance, and

Sustainability which in most cases has been first–of–its kind in India

Yes Bank has partnered with various companies for delivering quality products

and services namely Cash Tech, Cisco Systems, Gartner, Intel, i–flex, Reuters, VSNL,

Wipro, De La Rue, Murex, Wincor Nixdorf and Sanovi.

The bank also has a widespread branch network of over 331 branches across 200

cities, with over 420 ATM's and 2 National Operating Centres in Mumbai and

Gurgaon.

CHAPTER-III

ANALYSIS AND INTERPRETATION OF DATA

34
 We have circulated 120 questionnaires for collecting the information. Analysis

and Interpretation obtained from the collected data are very essential for the field

work. The completion of the project depends upon the analysis and interpretation of

the collected data.

We have adopted few statistical tools to represents the data collected. We

presented charts in the form of,

 Pie-Chart

 Bar diagram

 Pyramids

 Cones

 Cylinder

TABLE-3.1

AGE-WISE CLASSIFICATION

35
S.No Age No. of Percentage to
Respondents Tota
l

1. Below30 years 48 40.00

2. 31-40 years 30 25.00

3. 41-50 years 19 15.83

4. Above 50 years 23 19.17

Total 120 100.00

Source: Primary Data.

Out of 120 respondents, 48 respondents (40.00%) come under the age group of

below 30 years, 30 respondents (25.00%) come under the age of 31-40 years, 19

respondents (15.83%) come under the age of 41-50 years, and remaining 23

respondents (19.17%) are the age group of above 50 years.

Inference:

36
 A major chunk (40%) of the respondents belongs to the age group of Below 30

years.

CHART-3.1

AGE-WISE CLASSIFICATION

45
40
40
35
30
25
No.of Respondents

25
19.17
20
15.83
15
10
5
0
Below 30years 31-40 years 41-50 years Above 50 years
Age

37
 TABLE-3.2

GENDER-WISE CLASSIFICATION

S.N Gender No. of Percentage to

o Respondents Total

1. Male 70 58.33

2. Female 50 41.67

Total 120 100.00

Source: Primary Data.

From the above table, 70 respondents (58.33%) are Male, and remaining 50
respondents (41.67%) are Female.

Inference:

38
 A vast majority of the respondents are Male (58.33%).

CHART-3.2

GENDER-WISE CLASSIFICATION

Female; 41.67

Male; 58.33

TABLE-3.3

MARITAL STATUS-WISE CLASSIFICATION

S.No Marital status No. of Percentage

Respondents to Total

1. Married 81 67.50

2. Unmarried 39 32.50

Total 120 100.00

Source: Primary Data.

39
 From the above table, out of 120 respondents, 81 respondents (67.50%) are

married, and remaining 39 respondents (32.50%) are Unmarried.

Inference:

More than (67.50%) of the respondents are married status.

CHART-3.3

MARITAL STATUS-WISE CLASSIFICATION

40
Unmarried;
32.5

Married; 67.5

41
 TABLE-3.4

OCCUPATION-WISE CLASSIFICATION

S.N Occupation No. of Percentage

o Respondents to Total

1. Private 44 37.00
Employee

2. Government 21 18.00
Employee

3. Business 23 19.00

4. Professional 17 14.00

5. Home maker 15 12.00

Total 120 100.00

Source: Primary Data.

Out of 120 respondents, 44 respondents (37.00%) are Private employee, 21

respondents (18.00%) are Government employee, 23 respondents (19.00%) are

42
Business, 17 respondents (14.00%) are Professional, and 15 respondents (12.00%) are

Home maker.

Inference:

More than (37%) of the respondents is Private employee to buy a loan from a

bank.

CHART-3.4

OCCUPATION-WISE CLASSIFICATION

37
40

30
18 19
20 14 12
No.of Respondents

10

Occupation

43
Null Hypothesis- 1

Occupation and Types of Loan.

 HO: There is no significant relationship between Occupation of the

respondents and their opinion about the Types of Loans chosen by the

respondents.

 H1: There is a significant relationship between Occupation of the respondents

and their opinion about the Types of Loans chosen by the respondents.

In order to find out the Occupation and the Types of Loan.

Relationship between Occupation and Types of loan

Factor Calculated Table value Factor

44
 Chi-Square

Types of 3.017 12.592 Not

Loan significant

The Chi-Square test reveals that the calculated chi-square value (18.556) is less

than the table value and the result is not significant at 5% value. Hence the hypothesis

association between the Occupation and the Types of Loan.

TABLE-3.5

INCOME-WISE CLASSIFICATION

S.N Income Range (in No. of Percentage

o Rs) Respondents to Total

1. Below Rs 50,000 19 16.00

2. Rs 50,001-Rs 22 18.00
1,00,000

45
3. Rs 1,00,001-Rs 24 20.00
2,00,000

4. Above Rs 2,00,000 55 46.00

Total 120 100.00

Source: Primary Data.

The survey shows that 19 respondents (16.00%) earn a monthly income of

Below Rs.50,000. The income range between Rs.50,001-Rs.1,00,000 in the case of 22

respondents (18.00%), Rs.1,00,001-Rs.2,00,000 in the case of 24 respondents

(20.00%), and remaining 55 respondents (46.00%) earn more than Above

Rs.2,00,000.

Inference:

It is lucid that more than (46.00%) of the respondent’s monthly income

comes under Above Rs.2, 00,000.

CHART-3.5

INCOME-WISE CLASSIFICATION

46
 50
40
30
20
10
0
Noof Respondents

Income Range

Null Hypothesis- 2

Annual Income and their opinion about the borrowing amount of Loan.

47
  HO: There is no significant relationship between Annual Income of the

respondents and their opinion about the Borrowing amount of Loan.

 H1: There is a significant relationship between Annual Income of the

respondents and their opinion about the Borrowing amount of Loan.

In order to find out the relationship between Annual Income of the respondents

and their opinion about the Borrowing amount of Loan.

Relationship between the Annual Income and Borrowing Amount of Loan

Factor Calculated Table Factor

Chi-Square value

Borrowin 15.957 16.919 Not

g amount significant
of Loan

The Chi-Square test reveals that the calculated chi-square value (15.957) is less

than the table value and the result is not significant at 5% value. Hence the hypothesis

association between the Annual Income and the Borrowing amount of Loan.

TABLE-3.6

48
 TYPES OF ACCOUNT MAINTANANCE BY THE RESPONDENTS

S.N Types of No. of Percentage to

o Account Respondents Total

1. Savings a/c 53 44.17

2. Current a/c 22 18.33

3. Demand a/c 7 6.00

4. Fixed deposit 16 13.33

a/c

5. Salary a/c 22 18.33

Total 120 100.00

Source: Primary Data.

Out of 120 respondents, 53 respondents (44.17%) are Savings a/c users, 22

respondents (18.33%) are Current a/c users,7 respondents (6.00%) are demand a/c
users, 16 respondents (13.33%) are Fixed deposit a/c and remaining 22 respondents
(18.33%) are Salary a/c users.

Inference:

49
 It finds that types of accounts used by the customers in private sector banks.
(44.17%) of the users were uses Savings a/c.

CHART-3.6

TYPES OF ACCOUNT MAINTANANCE BY THE RESPONDENTS

Salary a/c

Fixed Deposit a/c

Types of A/C

Demand a/c

Current a/c

Savings a/c

0 5 10 15 20 25 30 35 40 45
No. of Respondents

50
 TABLE-3.7

BANKS PROVIDE GOOD CREDIT FACILITY TO THE CUSTOMER

S.N Respons No. of Percentage

o e respondents to Total

1. Yes 90 75.00

2. No 30 25.00

Total 120 100.00

Source: Primary Data.

The survey brought that majority (75.00%) of the respondents accept the credit

facility offer by private banks and remaining (25.00%) of the respondents are refused

that banks are not provide proper credit facility.

Inference:

A vast majority (75.00%) of the respondents are agreeing with good credit

facilities.

51
 CHART-3.7

BANKS PROVIDE GOOD CREDIT FACILITY TO THE CUSTOMER

25%

Yes No

75%

52
 TABLE-3.8

TYPES OF LOAN AVAILABLE BY THE BANKS

S.No Types of No. of Percentage to

Loans Respondents Total

1. Business loan 21 23.00

2. Educational 15 17.00
loan

3. Home loan 16 18.00

4. Personal loan 31 34.00

5. Vehicles loan 07 8.00

Total 90 100.00

Source: Primary Data.

53
 Among 90 respondents, 21 respondents (23.00%) were choose Business loan,

15 respondents (17.00%) were choose Educational loan, 16 respondents (18.00%)

were choose Home loan, 31 respondents (34.00%) were choose Personal loan and

remaining 7 respondents (8.00%) have choose Vehicles loan.

Inference:

More than (34.00%) of the respondents has selected the Personal loan from the

private sector banks.

CHART-3.8

TYPES OF LOAN AVAILABLE BY THE BANKS

8%
23%
Business Loan
Educational Loan
34% Home Loan
Personal Loan
17%
Vehicles Loan

18%

54
 TABLE-3.9

RESPONDENTS TO KNOW THE AWARNESS ABOUT LOAN

SCHEMES

S.N Source of No. of Percentage to

o awareness Respondents Total

1. Advertisement 37 31.00

2. Friends and 35 29.00

Relatives

3. Loan sanction 19 16.00

camp

4. Branch 29 24.00
Manager/Staff

55
 Total 120 100.00

Source: Primary Data.

In the midst of 120 respondents, 37 respondents (31.00%) have get awareness

through Advertisement, 35 respondents (29.00%) have get awareness through Friends

and Relatives, 19 respondents (16.00%) have get through Loan sanction camp and

remaining 29 respondents (24.00%) have get through Branch manager/staff.

Inference:

More than (31%) of the respondents have got awareness about loan scheme

through Advertisement.

CHART-3.9

AWARNESS ABOUT THE LOAN SCHEME

24%
31%

Advertisement
Friends and Relatives
Loan Sanction Camp
Branch Manager/Staff
16%

29%

56
 TABLE-3.10

AMOUNT OF LOAN BORROWED BY THE RESPONDENTS

S.No Amount of No. of Percentage

Loan(in Rs) Respondents to Total

1. Above/Below Rs 16 13.00
50,000

2. Rs50,001- 31 26.00
Rs1,00,000

57
 3. Rs1,00,001- 29 24.00
Rs2,00,000

4. Above Rs 44 37.00
2,00,000

Total 120 100.00

Source: Primary Data.

A study was made to know the customer in regard of amount borrowed from
private banks. It is lucid that a vast majority (37.00%) of respondents’ were borrowing
Above Rs.2, 00,000. Also (26.00%) of respondents were borrow Rs.50,001-
Rs.1,00,000, 29 respondents (24.00%) were borrow Rs.1,00,001-Rs.2,00,000, and
remaining 16 respondents (13.00%) were borrow Below Rs.50,000 from banks.

Inference:

Most of the respondents (37.00%) were borrow Above Rs.2, 00,000 from the
private sector banks.

CHART-3.10

AMOUNT OF LOAN BORROWED BY THE RESPONDENTS

58
 37
26 24
13

Amount of loan in (Rs)

TABLE-3.11

INTEREST RATE ON LOAN CHARGED BY THE BANK

59
 Respons No. of Percentage
e respondents to Total
S.N
o

1. Yes 86 72.00

2. No 34 28.00

Total 120 100.00

Source: Primary Data.

This table portrays that (72%) of the respondents are tell that bank charge

minimum interest rate for loan and remaining (28%) of the respondents are tell that

bank will not charge minimum interest rate for loan.

Inference:

A vast majority (72%) of the respondents will accept that bank charge only

minimum interest for loan.

60
 CHART-3.11

INTEREST RATE ON LOAN CHARGED BY THE BANK

No
28%

Yes
72%

TABLE-3.12

61
 RATE OF INTEREST CHARGED BY THE BANK

S.N Rate of No. of Percentage

o Interest respondents to Total

1. 12% 56 47.00

2. 15% 29 24.00

3. 16% 35 29.00

Total 120 100.00

Source: Primary Data.

From the on top of table, out of 120 respondents, 56 respondents (47%) think

about the Interest charged by the bank, at the rate of 12%, 29 respondents (24%) think

about the Interest charged by the bank, at the rate of 15%, and the left over 35

respondents (29%) think about the Interest charged by the bank, at the rate of 16%.

Inference:

More than (47%) of the respondents think about the Interest charged by the

bank at the rate of 12%.

62
 CHART-3.12

RATE OF INTEREST CHARGED BY THE BANK

29
3
16%
No.of Respondents

24
2
15%

47
1
12%

Rate of Interest

63
 TABLE-3.13

RESPONDENTS OPINION ABOUT THE INTEREST RATE

S.N Interest rate No. of Percentage to

o respondents Total

1. Less than market 31 26.00

rate

2. Greater than market 39 32.00

rate

3. Equal to market rate 50 42.00

Total 120 100.00

Source: Primary Data.

The above table shows that, out of 120 respondents, 31 respondents (26%)

mind-set about the Interest rate is less than the market rate, 39 respondents (32%)

mind-set about the Interest rate is greater than market rate and the remaining 50

respondents (42%) mind-set about the Interest rate is equal to market rate.

64
Inference:

More than (42%) of the respondent’s mind-set about the interest rate is equal to

market rate.

CHART-3.13

RESPONDENTS OPINION ABOUT THE INTEREST RATE

26%

42%
Less than market price
Greater than market rate
Equal to market rate

32%

65
 TABLE-3.14

RESPONDENTS TO PAY ANY PENALINTEREST

S.N Response No. of Percentage to

o Respondents Total

1. Yes 39 32.50

2. No 81 67.50

Total 120 100.00

Source: Primary Data.

Out of 120 respondents, 39 respondents (32.50%) will pay the penal interest and

left over 81 respondents (67.50%) will not pay the penal interest.

Inference:

Most of the respondents (67.50%) will not pay any penal interest for loan.

66
 CHART-3.14

RESPONDENTS TO PAY ANY PENAL INTEREST

Yes; 32.5

No; 67.5

67
 TABLE-3.15

TYPES OF SECURITIES

S.N Types of No. of Percentage

o securities Respondents to Total

1. Personal 48 40.00
security

2. Mortgage 25 21.00

3. Hypothecation 21 17.00

4. Pay certificate 26 22.00

Total 120 100.00

Source: Primary Data.

68
 From the above table 48 respondents (40.00%) have chosen Personal security,
25 respondents (21.00%) have chosen Mortgage, 21 respondents (17.00%) have
chosen Hypothecation and remaining 26 respondents (22.00%) have chosen Pay
Certification for sanction of loan.

Inference:

More than (40%) of the respondents have chosen Personal Security for sanction
of loan.

CHART-3.15

TYPES OF SECURITIES

Pay Certification 22
Types of Securities

Hypothecation 17

Mortgage 21

Personal Security 40

0 5 10 15 20 25 30 35 40
No of Respondents

69
 TABLE-3.16

REPAYMENT OF THE LOAN

Mode of No. of Percentage

Repayment loan Respondents to Total
S.N
o

1. Before due date 41 34.00

2. Due date 38 32.00

3. On getting 17 14.00
reminder

4. Legal notice 16 13.00

70
 5. Supervisor 8 7.00

Total 120 100.00

Source: Primary Data.

From the above table out of 120 respondents, 41 respondents (34.00%) of them
will refund their loan amount within before due date, 38 respondents (32.00%) of
them will refund their loan amount on due date, 17 respondents (14.00%) of them will
refund their loan amount while getting on reminder, 16 respondents (13.00%) of them
will refund their amount while getting legal notice and outstanding 8 respondents
(7.00%) of them will refund their amount when supervisor comes for collection of
loan amount.

Inference:

More than (34.00%) of the respondents will replay their loan amount before
due date to the bank.

CHART-3.16

REPAYMENT OF THE LOAN

71
 34
32
35
30
25
20 14 13
15
Noof Respondents

7
10
5
0

Mode of Repayment Loan

TABLE-3.17

DIFFICULTIES IN GETTING LOAN

No. of Percentage
Respondents to Total

72
 S.No Response

1. Yes 55 46.00

2. No 65 54.00

Total 120 100.00

Source: Primary Data.

From the above table out of 120 respondents, 55 respondents (46%) of them will

face difficulties while getting loan from private banks and remains 65 respondents

(54%) of them will not face any difficulties while getting loan from private banks.

Inference:

Majority (54%) of the respondents will not face any difficulties while getting

loan from private banks.

73
 CHART-3.17

DIFFICULTIES IN GETTING LOAN

46%
54% Yes No

TABLE-3.18

74
 REASONS FOR MENTION DIFFICULITIES IN GETTING LOAN

No. of Percentag
Respondent e to Total
S.No Reasons s

1. More 14 25.00
formalities

Delay in
sanctioning
2. 13 24.00

3. Lot of enquiries 13 24.00

Middlemen
interference
4. 11 20.00

5. Non-approval 4 7.00

Total 55 100.00

Source: Primary Data.

Among 55 respondents, 14 respondents (25%) will face more formalities for

getting loan, 13 respondents (24%) will face delay in sanctioning for getting loan, 13

respondents (24%) will face lot of enquiries before getting loan, 11 respondents (20%)

75
will face middlemen interference for loan and lasting 4 respondents (7%) of them face

non-approval for loan in private sector banks.

Inference:

More than (25%) of the respondents will face more formalities for getting loan.

CHART-3.18

REASONS FOR MENTION DIFFICULTIES IN GETTING LOAN

Non-Approval 7

Middlemen's Interference 20
Reasons

Lot of enquiries 24

Delay in sanctioning 24

More Formalities 25

0 5 10 15 20 25 30
No. of Respondents

76
 TABLE-3.19

DURATION TAKEN FOR SANCTION A LOAN

No. of Percentage
respondents to Total
S.N Intervals
o

1. 0-1 Months 54 46.00

2. 0-2 Months 22 18.00

3. 0-3 Months 22 18.00

More than 3
Months
4. 22 18.00

Total 120 100.00

Source: Primary Data.

77
 Out of 120 respondents, 54 respondents (46%) notify that bank will seize 0-1

Months to approve loan, 22 respondents (18%) notify that bank will seize 0-2 Months

to approve loan, 22 respondents (18%) notify that bank will seize 0-3 Months to

approve loan, 22 respondents (18%) notify that bank will seize More than 3 Months to

approve loan.

Inference:

A huge majority of the respondents (46%) notify that bank will seize 0-1

Months to approve loan for customers in Private sector banks.

CHART-3.19

DURATION TAKEN FOR SANCTION A LOAN

46
50
40
30 18
20 18
18
No of Respondents

10
0

Intervals

78
 TABLE-3.20

PROCESSING CHARGES OF BANK LOAN

S.N Processing No. of Percentage to

o charges Respondents Total

1. High 51 42.50

2. Low 69 57.50

Total 120 100.00

Source: Primary Data.

79
 The survey brought that a majority (57.50%) of the respondents inform that

private banks will charges only low amount and left over (42.50%) of the respondents

inform that private banks will charge high for loan.

Inference:

A vast majority (57.50%) of the respondents inform that private banks will

charges only low amount.

CHART-3.20

PROCESSING CHARGES OF BANK LOAN

80
 High; 42.5

Low; 57.5

TABLE-3.21

BANKS PROVIDE ANY COMPENSATION BENEFITS TO THE

CUSTOMERS

81
 No. of Percentage
Respondents to Total
S.No Response

1. Yes 54 45.00

2. No 66 55.00

Total 120 100.00

Source: Primary Data.

The survey brought to illumination that a majority (55%) of the respondents is

recommend that banks will not provide any benefits service to the users and (45%) of

the respondents is recommend that banks will provide benefits service to the users.

Inference:

More than (55%) of the respondents will suggest that banks not providing any

benefits to customers.

82
 CHART-3.21

BANKS PROVIDE ANY COMPENSATION BENEFITS TO THE

CUSTOMER

45%

Yes No
55%

TABLE-3.22

83
 TYPES OF BENEFITS

No. of Percentage to
Respondents Total
S.No Reasons

Low cost of
interest
1. 19 35.00

Extension due
date
2. 19 35.00

3. Remedies 16 30.00

Total 54 100.00

Source: Primary Data.

Among 54 respondents, 19 respondents (35%) declare that low cost of interest

benefits given to the clients, 19 respondents (35%) declare that extension due date of

benefits given to the clients, and lasting 16 respondents (30%) declare that remedies of

benefits given to the clients.

Inference:

More than 38 respondents (50%) declare that low cost of interest and

extension due date benefits are given to the clients in the Private sector banks.

84
 CHART-3.22

TYPES OF BENEFITS

Remedies 30
Reasons

Extension of due date 35

Low cost of Interest 35

27 28 29 30 31 32 33 34 35 36
No. of Respondents

85
 TABLE-3.23

RESPONDENTS ABOUT SERVICE CHARGED BY THE BANKS

No. of Percentage to
Respondents Total
S.No Respons
e

1. Yes 89 74.00

2. No 31 26.00

Total 120 100.00

Source: Primary Data.

Out of 120 respondents, 89 respondents (74%) says that bank provide service

to users, and remaining 31 respondents (26%) says that bank will not provide any

service to users.

Inference:

86
 A greater part (74%) of the respondents says that bank providing service to

customers in the Private sector bank.

CHART-3.23

RESPONDENTS ABOUT SERVICE CHARGED BY THE BANK

26%

Yes

No
74%

87
 TABLE-3.24

TYPES OF SERVICES PROVIDED BY BANK

No. of Percentage
Respondents to Total
S.No Types of services

1. Daily balance 25 28.00

services

2. Deposit and 28 32.00

Withdrawn service

3. Scheme about 14 16.00

Educational Loan

4. Scheme about 11 12.00

Home Loan

5. Scheme about 11 12.00

88
 Government
Programmes

Total 89 100.00

Source: Primary Data.

Between 89 respondents, 25 respondents (28%) have special daily balance

service suggest by banks, 28 respondents (32%) have special deposit and withdrawn
service suggest by banks, 14 respondents (16%) have special schemes about
Educational Loan suggest by banks, 11 respondents (12%) have special scheme about
home loan service suggest by banks and left over 11 respondents (12%) have special
scheme about government programmes suggest by banks.

Inference:

A vast majority of (32%) respondents have select Deposit and Withdrawn

service suggest by Private Banks.

CHART-3.24

TYPES OF SERVICES PROVIDED BY BANK

89
 Scheme about Government programme 12

Scheme about Home loan 12

Types of services

Scheme about Educational loan 16

Deposit and withdrawn service 32

Daily balance services 28

0 5 10 15 20 25 30 35
No. of Respondents

TABLE-3.25

RESPONSE ABOUT THE BANKS TO SOLVE THE CUSTOMER

PROBLEMS

No. of Percentage to

90
 S.N Response Respondents Total
o

1. Yes 79 66.00

2. No 41 34.00

Total 120 100.00

Source: Primary Data.

The survey brought that majority (66%) of the respondents tells that banks staff

are efficiently to solve customers’ problems, and remains (34%) of the respondents

tells that banks staff will not solve any customers problems.

Inference:

Majority (66%) of respondents is accepting that banks staff are very efficiently

to solve the customers in the private banks.

91
 CHART-3.25

RESPONSE ABOUT THE BANKS TO SOLVE THE CUSTOMER

PROBLEMS

34%

Yes No
66%

TABLE-3.26

92
 REASONS OCCUR TO RE-SOLVE PROBLEMS

S.N Reasons No. of Percentage

o Respondents to Total

1. Knowledge about 19 46.00

schemes

2. New employee 11 27.00

3. Partiality among 11 27.00

customers

Total 41 100.00

Source: Primary Data.

Between 41 respondents, 19 respondents (46%) of the respondents tell that

knowledge about scheme, 11 respondents (27%) of the respondents tell that new

employees and remaining of them 11 respondents (27%) of the respondents tell that

partiality among customers.

Inference:

93
 Majority of the respondents (46%) tells that problems were occurs due to

adequate knowledge about schemes.

CHART-3.26

REASONS OCCUR TO RE-SOLVE PROBLEMS

50
40
30
46
20
No of Respondents

10 27
27
0

Reasons

94
 TABLE-3.27

BANKS PROVIDE CARE FACILITY TO THE CUSTOMERS

Percentage to
Total
S.No Response No. of
Respondents

1. Yes 103 86.00

2. No 17 14.00

Total 120 100.00

Source: Primary Data.

The survey brought that greater part (86%) of the respondents accept the care

facility offer by private banks and remaining (14%) of the respondents are refused that

banks are not provide any care facility by private banks.

Inference:

A vast majority (86%) of the respondents are agreeing with care facility by

banks.

95
 CHART-3.27

BANKS PROVIDE CARE FACILITY TO THE CUSTOMER

No
14%

Yes
86%

96
 TABLE-3.28

PROMPT IN REPAYING LOAN BY THE CUSTOMER

No. of Percentage
Respondents to Total
S.No Reponses

1. Yes 93 77.50

2. No 27 22.50

Total 120 100.00

Source: Primary Data.

This above table shows that (77.5%) of the respondents will repay their loan

amount and remaining (22.5%) of the respondents will not repay their loan amount to

the banks.

Inference:

97
Majority (77.5%) of the respondents will repay their loan amount to the bank.

CHART-3.28

PROMPT IN REPAYING LOAN BY THE CUSTOMER

23%

Yes No
78%

98
 TABLE-3.29

REASON FOR PROMPT IN REPAYING LOAN

No. of Percentage
Respondents to Total
S.N Reasons
o

1. Inadequate 6 22.00
income

2. Forgetfulness 7 26.00

3. Business loan 2 7.00

4. Insolvency 8 30.00

5. No notice from 4 15.00

bank

99
 Total 27 100.00

Source: Primary Data.

This table describes that (22%) of the respondents will say that delay of repay
loan amount due to inadequate income, (26%) of the respondents will say that delay of
repay loan amount due to forgetfulness, (7%) of the respondents will say that delay of
repay loan amount due to business loan, (30%) of the respondents will say that delay
of repay loan amount due to insolvency and left behind (15%) of the respondents will
say that delay of repay loan amount due to no notice from bank.

Inference:

(30%) of the respondents will say that delay of repay loan amount due to
insolvency.

CHART-3.29

REASON FOR PROMPT IN REPAYING LOAN

100
 30
26
22

15

Reasons

TABLE-3.30

LEVELS OF SATISFACTION TOWARDS PRIVATE BANK LOAN

(Weightage)

101
S.No Factors Level of Satisfaction Total Average Rank
Scores

S. D N A S.A
D

1. Loan processing 19 10 29 34 28 318 21.2 I

time

2. Behaviour of
Bank Staff
14 14 27 33 32 305 20.3 III

3. Clarifying the
customer doubt
16 13 27 28 36 305 20.3 III

4. Verification of
Document
10 13 27 33 37 286 19.1 VI

5. Processing Fees 14 10 35 30 31 306 20.4 II

6. Repayment Time 9 9 34 37 31 288 19.2 V

Inference:

102
 This table makes it evidence that the respondents have given 1 st rank for Loan

processing time, 2nd rank for Processing Fees, 3rd rank for both Behaviour of Bank

staff and Clarifying the customer doubt, 5th rank for Repayment time and 6th rank for

Verification of Document.

CHAPTER-IV

SUMMARY OF FINDINGS AND SUGGESTION

INTRODUCTION

The present research titled “A study on Loan in Customer Perception and

Attitude towards Private Sector Banks” in Thoothukudi city is undertaken to analyse

the customer attitude. Thoothukudi was chosen as the study area because it’s unique

characteristics infrastructural facilities. The investigation encompassed with and

extensive survey to obtain primary data from a sample of 120 respondents.

Respondent’s attitude about in customer loan in Thoothukudi on simple random

sampling techniques. The sample for the present analysis constitutes the 120

respondents. Data were collector from 120 samples respondents for the period 2015

which covered all the activities of the respondent’s attitude in loan in Private Sector

Bank.

The primary data were gathered from the survey using structural schedules

which have been statistically analyzed and presented in the form of simple tables.

103
Simple statistical tools like Chi-Square and Weighted average test are used in the

research.

The findings of the study are being capsule as follows.

1. A major chunk (40%) of the respondents belongs to the age group of Below 30

years.

2. A vast majority of the respondents are Male (58.33%).

3. More than (67.50%) of the respondents are married status.

4. More than (37%) of the respondents is Private employee to buy a loan from a

bank.

5. It is lucid that more than (46%) of the respondent’s monthly income comes

under Above Rs.2,00,000.

6. It finds that types of accounts used by the customers in private sector banks.

(44.17%) of the users were uses Savings a/c.

7. A vast majority (75%) of the respondents are agreeing with good credit

facilities.

8. More than (34%) of the respondents has selected the Personal loan from the

private sector banks.

9. More than (31%) of the respondents have got awareness about loan scheme

through Advertisement.

10. Most of the respondents (37%) were borrow Above Rs.2, 00,000 from the

private sector banks.

11. A vast majority (72%) of the respondents will accept that bank charge only

minimum interest for loan.

104
12. More than (47%) of the respondents think about the Interest charged by the

bank at the rate of 12%.

13. More than (42%) of the respondent’s mind-set about the interest rate is equal to

market rate.

14. Most of the respondents (67.50%) will not pay any penal interest for loan.

15. More than (40%) of the respondents have chosen Personal Security for sanction

of loan.

16. More than (34%) of the respondents will replay their loan amount before due

date to the bank.

17. Majority (54%) of the respondents will not face any difficulties while getting

loan from private banks

18.More than (25%) of the respondents will face more formalities for getting loan.

19. A huge majority of the respondents (46%) notify that bank will seize 0-1

Months to approve loan for customers in Private sector banks.

20. A vast majority (57.50%) of the respondents inform that private banks will

charges only low amount.

21. More than (55%) of the respondents will suggest that banks not providing any

benefits to customers.

22. More than 38 respondents (50%) declare that low cost of interest and extension

due date benefits are given to the clients in the Private sector banks.

23. A greater part (74%) of the respondents says that bank providing service to

customers in the Private sector bank.

24. A vast majority of (32%) respondents have select Deposit and Withdrawn

service suggest by Private Banks.

105
25. Majority (66%) of respondents is accepting that banks staff are very efficiently

to solve the customers in the private banks.

26. Majority of the respondents (46%) tells that problems are occurs due to

adequate knowledge about schemes.

27. A vast majority (86%) of the respondents are agreeing with care facility by

banks.

28. Majority (77.5%) of the respondents will repay their loan amount to the bank.

29. (30%) of the respondents will say that delay of repay loan amount due to

insolvency.

30. The Level of satisfaction about the Private bank customer to prefer the Private

bank in loan processing time because it is easy to recover money.

106
 SUGGESTION

The researcher offers the following suggestions to develop the Private Sector

Bank.

™Banks should be provide different loan schemes with attractive features like rate

of interest, margin for attractive more and more people.

™Loan schemes and process of passing loan should be easy to make the people to

understand.

™Rate of interest should be competitive with other banks.

™Counter facility should be provided in all banks to help the customers to complete

the transaction quickly.

™To attract more customers, banks should make process of loan repayment easy.

™File processing charges should be eliminated in the banks.

™For customers awareness banks should also distribute booklets and advertise

attractive advertisements for awareness of the customer on different loan

scheme.

™The number of staff, handling loan affairs should be increased.

107
™To respect the customers by giving them individual attention and also help them

to know the bank better by Private Sector Bank.

™The bank should distribute information using websites and personal contact

programs for providing information on various product and services availed in

the respected banks.

™The Private Sector banks should bring out new schemes from time-to-time so that

more people can be attracted. Even some monetary rewards like gift and prizes

may be offered to the customers for their maintenance.

™The charges for saving account opening are high, so they should also be reduced.

Banks should increase the rate of saving account while opening a new account

in the branch or bank.

108
 Chapter-v

Conclusion

Bank provides security and convenience for managing our money and

sometimes allows us to make money by earning interest. Convenience and fees are

two of the most important things to consider when choosing a bank.

 The demand of loans increases whenever there is a decrease in the

interest rate.

 Now-a-days, people prefer to go for loan rather than going for Private

mortgage insurance.

 In recently the TMB bank reduce the customer loan percentage that is

0.20%. This modification is very useful information to the customer.

 Government has to take a lot of steps to encourage more people to go for

bank loans frequently.

 People face a lot of problems right from filling of loans application till

closing. Needs of the people from bank loans are not fulfilled due to

their own specific needs.

109
 Bibliography

PRIMARY SOURCES

The study has mainly depended on Primary Data. The Primary Data were

collected by personally interviewing the sample respondent in Thoothukudi city.

Specially constructed interview schedule was used for collection of primary data. The

Primary data were supplemented with the secondary data gathered from standard text

books pertaining to the topic chosen for the study.

SECONDARY DATA

BOOKS:

 Marketing Research- Dr.D.D.Sharma Sultan Chand & Sons, New Delhi, 2003.

 Modern Marketing-R.S.N.Pillai, Bagavathi Sultan Chand & Sons, New Delhi,

2001.

 Research methodology-C.R.Kothari Wishwa-Prakashan, New Delhi, 2001.

WEBSITES:

 https://en.wikipedia.org/wiki/Banking_in_India

 https://en.wikipedia.org/wiki/Private-sector_banks_in_India

 https://en.wikipedia.org/wiki/Loan

110
 http://www.basunivesh.com/2013/05/29/different-types-of-loans-in-india-

when-to-use-them/

 https://en.wikipedia.org/wiki/Thoothukudi

 https://en.wikipedia.org/wiki/Tamilnad_Mercantile_Bank_Limited

 https://en.wikipedia.org/wiki/Karur_Vysya_Bank

 https://en.wikipedia.org/wiki/ICICI_Bank

 https://en.wikipedia.org/wiki/HDFC_Bank

 https://en.wikipedia.org/wiki/Lakshmi_Vilas_Bank

 https://en.wikipedia.org/wiki/Axis_Bank

 https://en.wikipedia.org/wiki/Dhanlaxmi_Bank

 https://en.wikipedia.org/wiki/Federal_Bank

 https://en.wikipedia.org/wiki/Karnataka_Bank

 https://en.wikipedia.org/wiki/Yes_Bank

111