Page |1

“MODERNIZATION IN BANKING SECTOR IN

INDIA AXIS BANK V/S PNB BANK”

A PROJECT SUBMITTED TO
“UNIVERSITY OF MUMBAI FOR PARTIAL
COMPLETION OF THE DEGREE OF BACHELOR
IN COMMERCE (BANKING AND INSURANCE)”

UNDER THE FACULTY OF COMMERCE

BY
Mr/Ms____________________________
ROLL NO- ------

UNDER THE GUIDANCE OF

CS NITIN UPADHYE

VPM’S
K .G.JOSHI COLLEGE OF ARTS &
N.G. BEDEKAR COLLEGE OF COMMERCE
THANE
YEAR
MARCH, 2022-23
 Page |2

VIDYA PRASARAK MANDAL’S K. G. JOSHI COLLEGE OF

ARTS & N.G. BEDEKAR COLLEGE OF COMMERCE

Certificate

This is to certify that Mr/Ms -----------------------------------has worked

and fully completed her Project Work for the degree of Bachelor in
Commerce (Banking and Insurance) under the Faculty of Commerce in
the subject of __________________________ and her project is entitled,
“MODERNIZATION IN BANKING SECTOR IN INDIA AXIS BANK V/S PNB
BANK” under my supervision. I further certify that the entire work has

been done by the learner under my guidance and that no party of it has
been submitted previously for any Degree or Diploma of and University.
It is her own work and facts reported by her personal findings and
Investigations.

(CS NITIN UPADHYE)

Date of submission
 Page |3

DECLARATION

I the undersigned Mr/Ms -------------------------------- hereby, declare that the

work embodied this project work titled “MODERNIZATION IN
BANKING SECTOR IN INDIA AXIS BANK V/S PNB BANK” form my
own contribution the research work carried out under the guidance of CS
NITIN UPADHYE is a result of my own research work and has not been
previously submitted to any other university for any other Degree to his or any
other university.

Wherever references have been made to the previous works of others, it is

clearly indicated as such and included in the bibliography.

I, here by further declare that all information of these documents has been
obtained and presented in accordance with academic rules and ethical conduct.

Name and signature of the learner

______________________________

Certified by

Name and signature of the guiding teacher

CS NITIN UPADHYE
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ACKNOWLEDGEMENT

To list who all have helped me in difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following has been idealistic channels and
fresh dimension in the completion of the project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.

I would like to thanks my Principal, MRS. Dr. SUCHITRA NAIK

for providing the necessary facilities required for completion of this
project.

I take this opportunity to thank our Coordinator MRS. Dr. MRUNMAYEE

THATTE, for her moral support and guidance.

I would also like to express my sincere gratitude towards my project

guide CS NITIN UPADHYE whose guidance and care made the
project successful.

I would like to thank my college library for having provided various

reference books and magazine related to my project

Lastly I would like to thank each and every person who directly or
indirectly helped me in completion of project especially my parents and
peers who supported me throughout my project.
 Page |5

SR NO. INDEX Pg
No.

Chapter. INTRODUCTION 10
1

1.1 Banking industry 12

1.2 Pre Independence Period (1786-1947) 13

1.3 Post independence 13

1.4 Nationalization in 1969 14

1.5 Nationalization in 1980 15

1.6 Impact of Nationalization on Banking System 16

1.7 Liberalization Period (1991-Till Date) 17

1.8 Growth of banking industry 17

1.9 Banking sector in India 19

1.10 The Indian banking system consist of 20

1.11 Government initiatives 25

1.12 Negotiable instrument act 26

1.13 AXIS BANK 28

1.14 SWOT ANALYSIS 42

1.15 PNB BANK 43

1.16 SWOT ANALYSIS 47

Chapter. RESEARCH METHODLOGY 49

2

2.1 Objective of the study 50

2.2 Hypothesis of the study 50

2.3 Limitation of the study 51

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2.4 Significance of the study 51

2.5 Selection of the problem 51

2.6 Sampling technique 52

2.7 Data collection method 52

2.8 Test of data analysis 52

Chapter.3 REVIW OF LITRATURE 53

3.1 References 61

Chapter.4 DATA ANALYSIS,INTERPRITATION & PRESENTATION 64

4.1 Meaning 65

4.2 Tools of data analysis 65

4.3 Test of data analysis 66

4.4 Data collection from respondents 66

4.5 Hypothesis testing 78

Chapter.5 CONCLUSION,FINDINGS &SUGGETIONS 79

BIBLIOGRAPHY 83

ANNEXER 86

LIST OF TABLES

SR NO. TITLE OF TABLES Pg.

No.

Chapter. INTRODUCTION 10
1

1.1 Board of directors of axis bank 36

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Chapter. DATA ANALYSIS AND INTERPRETATION 64

4

4.1 Age 66

4.2 Area 67

4.3 Qualification 68

4.4 What type of account holder you are? 69

4.5 Type of bank 70

4.6 Frequency of visiting bank 71

4.7 How long you have been known the modern services? 72

4.8 How much time taken to do modern services? 73

4.1 How do you perceive in adapting modern banking 75

0 services?

4.1 Which bank do you consider most technologically 76

1 advanced?

4.1 Do you think axis bank is modern as compare to PNB 77

2 bank?

LIST OF FIGURES AND DIAGRAMS

Sr no. TITLE OF FIGURES & DIAGRAMS Pg.

No.

Chapter. INTRODUCTION 10
1

1.1 History of Indian banking 12

1.2 Indian banking system 20

1.3 Account information 26

 Page |8

Chapter. DATA ANALYSIS AND INTERPRETATION 64

4

4.1 Age 66

4.2 Area 67

4.3 Qualification 68

4.4 What type of account holder you are? 69

4.5 Type of bank 70

4.6 Frequency of visiting bank 71

4.7 How long you have been known the modern services? 72

4.8 How much time taken to do modern services? 73

4.9 What are the problems in modern banking services? 74

4.10 How do you perceive in adapting modern banking 75

services?

4.11 Which bank do you consider most technologically 76

advanced?

4.12 Do you think axis bank is modern as compare to PNB 77

bank?
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CHAPTER 1:

INTRODUCTION
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INTRODUCTION:

Modern banking in India originated in the mid of 18th century. Among the

first banks were the Bank of Hindustan, which was established in 1770 and liquidated
in 1829–32; and the General Bank of India, established in 1786 but failed in 1791.

The largest and the oldest bank which is still in existence is the State Bank of
India (SBI). It originated and started working as the Bank of Calcutta in mid-June
1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks
founded by a presidency government; the other two were the Bank of Bombay in
1840 and the Bank of Madras in 1843. The three banks were merged in 1921 to form
the Imperial Bank of India, which upon India's independence, became the State Bank
of India in 1955. For many years, the presidency banks had acted as quasi-central
banks, as did their successors, until the Reserve Bank of India was established in
1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks
under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called
its associate banks. In 1969, the Government of India nationalized 14 major private
banks; one of the big banks was Bank of India. In 1980, 6 more private banks were
nationalized. These nationalized banks are the majority of lenders in the Indian
economy. They dominate the banking sector because of their large size and
widespread networks.
 P a g e | 11

The Indian banking sector is broadly classified into scheduled and non-scheduled

banks. The scheduled banks are those included under the 2nd Schedule of the Reserve
Bank of India Act, 1934. The scheduled banks are further classified into: nationalized
banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign
banks; and other Indian private sector banks. The SBI has merged its Associate banks
into itself to create the largest Bank in India on 1 April 2017. With this merger SBI
has a global ranking of 236 on Fortune 500 index. The term commercial bank refers to
both scheduled and non-scheduled commercial banks regulated under the Banking
Regulation Act, 1949.

Generally the supply, product range and reach of banking in India is fairly mature-
even though reach in rural India and to the poor still remains a challenge. The
government has developed initiatives to address this through the State Bank of India
expanding its branch network and through the National Bank for Agriculture and
Rural Development (NABARD) with facilities like microfinance.

1.1 BANKING INDUSTRY

A bank is a budgetary middle person and Money maker that make Money by loaning
cash to a borrower. Loaning exercises can be performed straightforwardly by giving
credit or by implication through capital market. Capital market is monetary market for
the purchasing and offering of long haul obligation or value supported securities.
These business sectors channel the abundance of savers to the individuals who can put
it to long haul beneficial utilize, for example, organizations or governments
influencing bug-to term speculations. Monetary controllers, for example, the
Securities and Exchange Board of India (SEBI) or U.S. Securities and Exchange
Commission (SEC), direct the capital market in their wards to ensure financial
specialists against extortion, among different obligations. Because of the significance
in the monetary framework and impact on national economies, banks are very
directed in perch of nations either by National Government or Central Bank.
 P a g e | 12

Figure1.1 history of Indian banking

1.2 Pre Independence Period (1786-1947)

The first bank of India was the “Bank of Hindustan”, established in 1770 and located
in the then Indian capital, Calcutta. However, this bank failed to work and ceased
operations in 1832. 

During the Pre Independence period over 600 banks had been registered in the
country, but only a few managed to survive.

Following the path of Bank of Hindustan, various other banks were established in
India. They were:

 The General Bank of India (1786-1791)

 Oudh Commercial Bank (1881-1958)

 Bank of Bengal (1809)      

 Bank of Bombay (1840)    

 Bank of Madras (1843)   

During the British rule in India, the East India Company had established three banks:
Bank of Bengal, Bank of Bombay and Bank of Madras and called them the
 P a g e | 13

Presidential Banks. These three banks were later merged into one single bank in 1921,
which was called the “Imperial Bank of India.”

The Imperial Bank of India was later nationalized in 1955 and was named The State
Bank of India, which is currently the largest Public sector Bank. 

1.3 POST INDIPENDENCE

During 1938–46, bank branch offices trebled to 3,469 and deposits quadrupled
to ₹962 crore. Nevertheless, the partition of India in 1947 adversely impacted the
economies of Punjab and West Bengal, paralyzing banking activities for months.
India's independence marked the end of a regime of the Laissez-faire for the Indian
banking. The Government of India initiated measures to play an active role in the
economic life of the nation, and the Industrial Policy Resolution adopted by the
government in 1948 envisaged a mixed economy. This resulted in greater
involvement of the state in different segments of the economy including banking and
finance. The major steps to regulate banking included:

 The Reserve Bank of India, India's central banking authority, was established in

April 1935, but was nationalized on 1 January 1949 under the terms of the
Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
 In 1949, the Banking Regulation Act was enacted, which empowered the Reserve
Bank of India (RBI) to regulate, control, and inspect the banks in India.
 The Banking Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two banks
could have common directors.

1.4 Nationalization in 1969

Despite the provisions, control and regulations of the Reserve Bank of India, banks in
India except the State Bank of India (SBI), remain owned and operated by private
persons. By the 1960s, the Indian banking industry had become an important tool to
 P a g e | 14

facilitate the development of the Indian economy. At the same time, it had emerged as
a large employer, and a debate had ensued about the nationalization of the banking
industry. Indira Gandhi, the then Prime Minister of India, expressed the intention of
the Government of India in the annual conference of the All India Congress Meeting
in a paper entitled Stray thoughts on Bank Nationalization.

Thereafter, the Government of India issued the Banking Companies (Acquisition and
Transfer of Undertakings) Ordinance, 1969 and nationalized the 14 largest
commercial banks with effect from the midnight of 19 July 1969. These banks
contained 85 percent of bank deposits in the country. Within two weeks of the issue of
the ordinance, the Parliament passed the Banking Companies (Acquisition and
Transfer of Undertaking) Bill, and it received presidential approval on 9 August 1969.

The following banks were nationalized in 1969:

 Allahabad Bank (now Indian Bank)

 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 Central Bank of India
 Canara Bank
 Dena Bank (now Bank of Baroda)
 Indian Bank
 Indian Overseas Bank
 Punjab National Bank
 Syndicate Bank (now Canara Bank)
 UCO Bank
 Union Bank of India
 United Bank of India( now Punjab National Bank)

1.5 Nationalization in 1980

A second round of nationalizations of six more commercial banks followed in 1980.

The stated reason for the nationalization was to give the government more control of
 P a g e | 15

credit delivery. With the second round of nationalizations, the Government of India
controlled around 91% of the banking business of India.

The following banks were nationalized in 1980:

 Punjab and Sind Bank

 Vijaya Bank (Now Bank of Baroda)
 Oriental Bank of Commerce (now Punjab National Bank)
 Corporation Bank (now Union Bank of India)
 Andhra Bank (now Union Bank of India)
 New Bank of India (now Punjab National Bank)

Later on, in the year 1993, the government merged New Bank of India with Punjab
National Bank.[25] It was the only merger between nationalized banks and resulted in
the reduction of the number of nationalized banks from 20 to 19. Until the 1990s, the
nationalized banks grew at a pace of around 4%, closer to the average growth rate of
the Indian economy.

1.6 Impact of Nationalization on Banking System

There were several reasons for nationalism in the banks of India that are:
1. Nationalism led to an increase in funds and thereby increased the economic
condition of the country. 
2. It increased efficiency. 
3. It helped in boosting the rural and agricultural sector of the country. 
4. This opened up a major employment opportunity for the people. 
5. The profit gained by Banks was used by the Government for the betterment of
the people. 
6. The competition was decreased and work efficiency had increased. 
The post-independence phase was the one that led to the major development of the
banking sector in India. 

1.7 Liberalization Period (1991-Till Date)

 P a g e | 16

Once the banks were established in the country, regular monitoring and regulations
need to be followed to continue the profits provided by the banking sector. The last
phase or the ongoing phase of the banking sector development plays a hugely
significant role.

To provide stability and profitability to the Nationalised Public sector Banks, the
Government decided to set up a committee under the leadership of Shri. M
Narasimham to manage the various reforms in the Indian banking industry.

The biggest development was the introduction of Private sector banks in India. RBI
gave license to 10 Private sector banks to establish themselves in the country. These
banks included:

1. Global Trust Bank

2. ICICI Bank
3. HDFC Bank
4. Axis Bank
5. Bank of Punjab
6. IndusInd Bank
7. Centurion Bank
8. IDBI Bank
9. Times Bank
10. Development Credit Bank

The other measures taken include:

 Setting up of branches of the various Foreign Banks in India

 No more nationalisation of Banks could be done

 The committee announced that RBI and Government would treat both public
and private sector banks equally

 Any Foreign Bank could start joint ventures with Indian Banks

 Payments banks were introduced with the development in the field of banking
and technology

 Small Finance Banks were allowed to set their branches across India
 P a g e | 17

 A major part of Indian banking moved online with internet banking and apps
available for fund transfer

Thus, the history of banking in India shows that with time and the needs of people,
major developments have been brought about in the banking sector with an aim to
prosper it. 

1.8 GROWTH OF BANKING INDUSTRY

In the cutting-edge sense, began in the most recent many years of the eighteenth
century. Among the principal banks were the Bank of Hindustan, which was set up in
1770 and sold in 1829– 32; and the General Bank of India, set up in 1786 however
flopped in 1791. The biggest bank, and the most established still in presence, is the
State Bank of India (S.B.I). It began as the Bank of Calcutta in June 1806. In 1809, it
was renamed as the Bank of Bengal. This was one of the three banks established by
an administration government; the other two were the Bank of Bombay in 1840 and
the Bank of Madras in 1843. The three banks were converged in 1921 to frame the
Imperial Bank of India, which upon India's autonomy, turned into the State Bank of
India in 1955. For a long time, the administration banks had gone about as semi
national banks, as did their successors, until the point when the Reserve Bank of India
was built up in 1935, under the Reserve Bank of India Act, 1934. In 1960, the State
Banks of India was given control of eight state-related banks under the State Bank of
India (Subsidiary Banks) Act, 1959. These are presently called its partner banks. In
1969 the Indian government nationalized 14 noteworthy private banks; one of the
huge banks was Bank of India. In 1980, 6 more private banks were nationalized.
These nationalized banks are the lion's share of moneylenders in the Indian economy.
They rule the saving money division due to their substantial size and across the board
organizes.

Given below is the list of these 14 Banks nationalized in 1969:

1. Allahabad Bank               
2. Bank of India                          
3. Bank of Baroda
 P a g e | 18

4. Bank of Maharashtra         
5. Central Bank of India
6. Canara Bank         
7. Dena Bank
8. Indian Overseas Bank
9. Indian Bank
10. Punjab National Bank                         
11. Syndicate Bank             
12. Union Bank of India
13. United Bank 
14. UCO Bank

In the year 1980, another 6 banks were nationalized, taking the number to
20 banks. These banks included:

1. Andhra Bank
2. Corporation Bank
3. New Bank of India
4. Oriental Bank of Comm.
5. Punjab & Sind Bank
6. Vijaya Bank 

Apart from the above mentioned 20 banks, there were seven subsidiaries
of SBI which were nationalized in 1959:

1. State Bank of Patiala 

2. State Bank of Hyderabad 
3. State Bank of Bikaner & Jaipur 
4. State Bank of Mysore 
5. State Bank of Travancore 
6. State Bank of Saurashtra 
7. State Bank of Indore
 P a g e | 19

All these banks were later merged with the State Bank of India in 2017, except for the
State Bank of Saurashtra, which merged in 2008 and State Bank of Indore, which
merged in 2010.

1.9 BANKING SECTOR IN INDIA

As indicated by the Reserve Bank of India (RBI), the managing an account division in
India is sound satisfactorily capitalized and all around controlled. India is one of the
main 10 economies globally, with huge potential for the managing an account
segment to develop. With the possibility to wind up the fifth biggest saving money
industry on the planet by 2020 and third biggest by 2025, as per KPMG-CIN report,
India's managing an account and facial segment is extending quickly. The new
standards of Reserve Bank of India's (RBI) will give incentives to banks to spot
potential terrible credits and make remedial strides that will check the acts of
unreliable borrowers.

The Indian Banking industry is at present worth's. 81 trillion (US $ 1.31 trillion) and
banks are presently using the most recent technologies like internet and cell phones to
complete exchanges and communicate with the majority.

1.10 THE INDIAN BANKING SYSTEM CONSISTS OF:

 P a g e | 20

Figure1.2 Indian banking system

1. Central Bank:

A national bank works as the pinnacle controlling establishment in the

managing an account and money related arrangement of the nation. It works as
the controller of credit, broker's bank and ado appreciates the restraining
infrastructure of issuing money for the benefit of the administration. A
national bank is typically control and frequently claimed, by the
administration of a nation. The Reserve Bank of India (RBI) is such a bank
inside India.

2. Schedule Commercial Bank:

 P a g e | 21

It operates for profit. It accepts deposits from the public and extends loans to
the households, the firms and the government. The essential characteristics of
commercial banking are as follows:

 Acceptance of deposits from public.

 For lending or investment
 Repayable on demand or lending or investment
 Withdrawal by means of an instrument, whether a cheque.

I. Public Sector Banks:

Public Sector Banks (PSBs) are those banks where majority of stakes fi
with the Government. All these PSBs are listed on stock exchanges.
Central Government entered banking industry with the nationalization
of Imperial Bank of India in 1955, then in 1969 14 major banks were
nationalized and in 1980 4 more bank were nationalized. To Name a
few PSBs: State Bank of India and is subsidiaries, Bank of India, Bank
of Baroda, Bhartiya Mahila Bank, Central Bank of India, etc. The
objectives behind nationalization where:

• To break the ownership and control of banks by a few business

• To prevent the concentration of wealth and economic power,
• To mobilize savings from masses from all parts of the country,
• To cater to the needs of the priority sectors.

II. Private Sector Banks:

Private Sector Banks in India is made up of private and public banks.

But the greater part of stake is in the hand of private shareholders and
not with the Government. Private Banks are categorized as Old and
New Private bank
 P a g e | 22

Old Private Banks: These are those banks which were not
nationalized during the process in 1969 and 1980 due to the smaller
scale or regional reach only.
Example: thalami Bank, Federal Bank, ING Vysya Bank, Karur
Vysya Bank, etc.
New Private Banks: These are the banks which came into operations
afire the liberalization in 1990s. Banking Regulation was amended in
1993 so that new private banks can enter the Indian Banking industry.

Example: ICICI Bank, AXIS Bank, HDFC Bank, Yes Bank,

Development Credit Bank, Kotak Mahindra Bank, RBL Bank, etc.

But there 300 Cr.were certain criteria for the establishment of new
private banks which are as follow: -

• Bank should have minimum net worth of Rs 200 Cr.

• Proprietors should hold an iminium of 25% of paid-up capital
• Within 3 years of the starting of the operations, the bank
should offer shares to public and their net worth rust increase
to 300 Cr.

III. Foreign Banks:

With the globalization hitting the world, the concept of banking has
changed substantially. The concept of Foreign Banks has changed the
prevailing banking scenario in India. Banking is now crore of crore
customer-friendly, modern technology have been implemented like
mobile banking, mobile application of banks, etc.

Example: HSBC Bank, JP Morgan Chase Bank, Deutsche bank,

Standard Charter Bank, etc.
 P a g e | 23

IV. Regional Rural Banks:

Regional Rural Banks (RRBs) were started in 1970 since even afire the
nationalization, there were cultural issues related to lending to the
farmers. The main purpose of RRBs is to mobilize financial resources
from rural-semi-urban areas and grants loans and advances mostly to
small and marginal farmers, agricultural labors, etc.

Example: Karnataka Vikas Gardena Bank, Maharashtra Garmin Bank,

etc.

3. Schedule Co-operative Bank:

Larger visit unions are often called cooperative banks. Like credit unions,
cooperative banks are owned by their customers and follow the cooperative
principle of one person, one vote.
Unlike credit unions, however, cooperative banks are often regulated under
both banking and cooperative legislation. They provide services such as
savings and loans to non-reefers’ swell as to reefers, and some participate in
the wholesale market for hands, Money and even equities.

I. Urban Co-operative Banks:

Urban Co-operative Banks are giving banking facility y to grass root

persons. As Urban Cooperative Banks are mostly working in the rural
and semi-urban areas they understand the genuine commercial needs of
the local population in their area of operation Urban Co-operative
Banks help small and medium sized traders, entrepreneurs, artisans and
farmers who are deprived of banking facility as private sector and
commercial banks tap only high profile and successful entrepreneurs.
 P a g e | 24

Example: Ahmadabad Mercantile Co-Op Bank, Kakapo Currier l

Coop. Bank, Burrito Mercantile Co-operative Bank, Saraswat Co-
operative Bank, etc.

II. Rural Co-operative Banks:

The rural co-operatives are further divided into short-term and long-
term structure. The shortterm cooperative banks are three tired
operating in different states.

I. State Cooperative Banks

II. Cooperative Banks
III. Primary Agricultural Credit Societies

The long-term structures are further divided into-

State Cooperative Agricultural and Rural Development Banks

(SCARDS)

Primary Cooperative Agricultural and Rural Development Banks

(PCARDBS)

Different Banking activities:

• Retail banking
• Business banking
• Corporate banking
• Private banking
• Investment banking

1.11 Government initiatives:

 Pradhan Mantri Jan Dham Yojna:The scheme has been

started with a target to provide 'universal access to banking
 P a g e | 25

facility starting with 'Basic Banking Accounts" with overdraft

facility of 15000 after six months and Rupays Debi card with
inbuilt accident insurance cover of 1 1 lakh and Rupay, Kisan
Card.

 Pradhan Mantri Suraksha Bema Yojna: Accident Insurance Scheme

offering accidental death and disability cover for death or disability because of
an accident.

 A 112/- per annum premium will be deducted from the account holder’s
savings bank account through ‘auto debit’ facility in one installment.
 In case of accidental death or full disability, payment of
 2, 00,000/- will be given to the nominee and in case of partial disability
payment of 1,00,000/- will be given.

 Pradhan Mantri Jeevan Jyoti Bind Yojna: is a government-

backed Life insurance scheme in India. This scheme will be
linked to the bank accounts opened under the Pradhan Mantri
Jan Dham Yojna scheme.

• A premium of Rs 330/- per annum will be deducted from the

account holder’s savings bank account through ‘auto-debit’ facility
in one installment.
• In case of death of policy holder in any case, nominee will receive
2,00,000/-.
 P a g e | 26

Figure1.3 Accounts information

Banking is working specifically on the guidelines of the Reserve Bank of India. Out
of all the acts Negotiable Instrument Act is one of the most important acts for running
of the banking activities.

1.12 NEGOTIABLE INSTRUMENT ACT:

This is an act to define and lay down the law relating to Promissory Notes, Bills of
Exchange or Cheques payable either to bearer or to order.

This act operates subject to the provisions of Sections 31 and 32 of the Reserve Bank
of India Act, 1934. Section 31 of the Reserve Bank of India Act provides that no
person in India other than the RBI or as expressly authorized by this Act, the Central
Government shell draw, accept, make or issue any bill of exchange, humid,
promissory note or engagement for the payment of Money payable to bearer on
demand.

TYPES OF NEGOTIABLE INSTRUMENT ARE:

Promissory Note: It is an instrument in writing (not being a bank-note or a

currency note) containing an unconditional undertaking, signed by the maker, to pay a
certain sum of Money only to, or to the order of, a certain person or to the bearer of
the instrument.
 P a g e | 27

Bill of Exchange: A bill of exchange” is an instrument in writing containing an

unconditional order, signed by the maker, directing a certain person to pay a certain
sum of Money only to, or to the order of, a certain person or to the bearer of the
instrument.

Cheque: is bill of exchange drawn on a specified banker and not expressed to be

payable otherwise than on demand and it includes the electronic image of a truncated
cheque and a cheque in the electronic form.
 P a g e | 28

1.13 AXIS BANK

 P a g e | 29

Introduction:

Axis Bank Ltd., the first bank to begin operations as new private banks in 1994 afire
the Government of India allowed new private banks to be established. Axis Bank was
jointly promoted by the Administrator of the specified undertaking of the

• Unit Trust of India (UTI-1)

• Life Insurance Corporation of India (LIC)

• General Insurance Corporation Ltd.

Additionally, with associates National Insurance Company Ltd., The New India
Assurance Company, The Oriental Insurance Corporation and United Insurance
Company Ltd.

Hub Bank is the third biggest private part bank in India. Pivot Bank offers the entire
range of money related administrations to client portions covering Large and Mid-
Corporate, MSME, Agriculture and Retail Businesses. The Bank has a substantial
impression of 3703 branches and 13,814 ATMs spread over the province as on 12
Aug 2016 which is the biggest ATM organize in nation among Private Sector Banks
in India.

The abroad tasks of the Bank are spread over its seven worldwide workplaces with
branches at Singapore, Hong Kong, DIFC (Dubai International Financial Center),
Colombo and Shanghai and delegate workplaces at Dubai and Abu Dhar With an
accounting report size of 6,91,330/ - Cr. as on 31st March 2018, Axis Bank has
accomplished steady development and stable resource quality with a 5-year CAGR
(2012-13 to 2017-18) of 15% in Total Assets, 12% in Total Deposits, 17% in Total
Advances. 21 The most recent contributions of the bank alongside Dollar Varian is
the Euro and Pound Sterling variations of the International Travel Currency Card
(TCDC Card). The Travel Currency Card is a mark based prepaid travel card which
empowers traveler's global access to their Money in neighborhood cash of the
meeting province in a sheltered and helpful way.
 P a g e | 30

The Bank has qualities in both retail and corporate managing an account and is
focused on embracing the best business rehearses internationally in request to
accomplish perfection.

1.13.1HUMAN RESOURCE DEPARTMENT

"Human Resource Management work that enables administrators to enroll, select,

prepare and create individuals for an association. Clearly, HRM is worried about the
general population's measurement in associations.

Work power of an Organization is a standout amongst the most imperative

contributions of segments. It is said that individuals are our single most critical
resources. Because of the interesting significance of HUMAN RESOURCE and its
multifaceted nature because of consistently evolving brain science, conduct and
demeanors of people at work, in all business censures, there is one regular component.
I.e. Human staff work, i.e., labor administration work is winding up progressively
specific.

The staff capacity or framework can be extensively characterized as the

administration of individuals at work administration of administrators and
administration of specialists. Work force work is especially inspired by faculty
relationship and communication of representatives human relations. It might be said,
administration is work force organization. Administration is the advancement of
individuals, and not minor heading of material assets. Human capital is the best
resource of a business undertaking.

The fundamental element of administration is the authority and course of individuals.

Every director of individuals must be his own staff man. Faculty administration isn't
something you truly swing over to work force office staff.

 Human Resource planning this is taken care of by doing the arranging

toward the start of consistently. Toward the finish of the year, the
Human Resource division from each Branch gets the necessity for the
individual for entire year. At that point the arranging of enrollment and
 P a g e | 31

preparing is finished via preparing chief and enlisting director which is

endorsed from Head for Department.

 Recruitment Enrollment is a procedure of scanning for imminent

possibility for the given employment in the business. As we probably
are aware it is imperative for a mechanical worry to have productive
and powerful staff with right quality and at opportune time and at
perfect place accessible at whatever point they are required. Each
association needs worker time by time in view of advancement or
retirement of a representative. For this reason, an association needs to
look for the correct competitor. Thus, it needs to energize this kind of
right applicants at whatever point they require.

 Training and Development Preparing goes for expanding the aptitudes,

aptitudes and capacities of specialists to perform employment. It
makes representatives more successful and handy. In exhibit dynamic
universe of business preparing is more vital there is an ever-display
requirement for preparing men. With the goal that new and changed
systems might be embraced. Another and changed procedure might be
taken as a focal points and change influenced in the old strategies.
Preparing is learning background that looks for generally lasting
change in a person that will enhance his/her capacity to perform at
work. They give "at work" preparing to their representatives in the
branch as they select these workers for offering different results of
bank by coordinate promoting. At whatever point they select new
contender for any post, they use to give them at work. If there should
be an occurrence of offers people to appropriate their different items,
at the outset the individual must work under the perception of his
senior then they should go in market to have their own understanding.
The ideal opportunity for preparing program for the applicant is
depends up on the significant position of his work region. They
additionally give preparing identified with client care and
correspondence.
 P a g e | 32

 Employee Remuneration and Incentive Payments Compensation is the

remuneration a representative gets as an end-result of his/her
commitment to the association. Compensation possesses a noticeable
place in the life of a worker. At AXIS, compensation of a worker
involves — wages and pay, motivating forces.

 Wages and Salary Aside from different impetuses and advantages, the
work force is remunerated just as far as wages and pay rates. A
legitimate remuneration as far as this is fundamental for inspiration
representatives for their persistent enhanced execution. For this, it is
required that wages and pay rates are given well by association. 24
Wages and pay allude to the foundation and usage of sound strategies
and practices of representative's remuneration. A wage and pay are the
compensation paid for the administration of work underway
intermittently to a worker. The bank is in benefit industry, so the
compensation is given on month to month premise. They used to
procure certain sales representative on commission base and they are
given their pay rates on commission base.
While other lasting staff are being given month to month pay rates. As
AXIS bank is rumored bank in showcase the compensation scale is
according to the standard. Deals officials (cajole) are being given
compensation of 6000 to 8000 every month. While deals officer's
compensation ranges from 15000 to 18000 every month. Pivot bank is
additionally giving appealing impetuses according to the objective.
The compensation of branch administrator is around 35000 every
month.

 Incentives in AXIS, representatives get motivating forces considering

the objective given to every worker and their zone of work. They have
built up the motivation structure for the workers in view of point
framework. Every one of the representatives get the motivating force
in the frame money compensates.
 P a g e | 33

 Employees advantage the representatives of AXIS naturally move

toward becoming AXIS bank compensation account Holders with
uncommon advantage and benefits and get moment pay credit. The
advantage incorporates worldwide check card, corporate card with
singular obligation (CCIL), access to telephone saving money and web
managing an account, demit records, and host of different
administrations to supplement their investment account. Here are a
portion of the highlights of AXIS Bank's compensation account.

 Disputes and their determination Question are normal in association.

By and by, debate principally identify with the objective simply
because if any worker isn't accomplishing target he/she won't qualified
for impetus which makes disappointment among them. Each
representative can converse with the leader of the division on the off
chance that they have any issue identified with the activity. Right off
the bat, the issue is tackled by the leader of the division and if the issue
does not settle by the leader of that office then it is routed to the HR
Manager.

 Performance Appraisal An association's objectives can be

accomplished just when individuals put in their earnest attempts.
Execution examination might be comprehended as the evaluation of a
person's execution methodically. It is characterized as the precise
assessment of the person as for his/her execution at work and his/her
potential for advancement. To evaluate the execution of the worker
they have built up a credit framework in view of the offered focus to
the representative.
 P a g e | 34

1.13.2 MARKETING DEPARTMENT

The exercises of an organization related with purchasing and offering an item or

administration. It incorporates promoting, offering and conveying items to
individuals. Individuals who work in showcasing bureaus of organizations attempt to
get the consideration of target groups of onlookers by utilizing trademarks, bundling
outline, big name supports and general media presentation.

Ajay Kelkar, Head, Marketing, AXIS Bank, said that these activities are particularly
focused at those customers who don't know about the bank's different esteem included
administrations, for example, coordinate managing an account office.

"We will exhibit the benefits of net managing an account and portable keeping
money, as these ideas are generally new to individuals living in littler towns and
urban communities," said Kelkar. The bank has additionally propelled another activity
called Business Ki Batten, which is focused at zones where the greater part of the
populace contains little businesspeople. Kelkar said that the bank would motivate
specialists to chat on a few issues, for example, esteem include assessment and deals
charge. Bank can gauge the aftereffect of a battle through the deals that they produce
and the clients that are included.

There is a reasonable rate of return, which from a useful perspective gives the group a
more grounded voice. Bank has likewise possessed the capacity to lessen their
promotion spends by around 10-15 for each penny and has additionally decreased the
cost of obtaining Bank's concentration in future is upgrade its database advertising
activities. Bank intend to contribute near Rs 12 crore to make the condition that is
required to help client insight that prompts information-based advertising. Hub has
contracted a broad Customer Lifecycle based advertising effort date-book for this and
the anticipated monetary. Fractal, which spends considerable time in foreseeing the
conduct of the clients in the regions of hazard and advertising, would accomplice
AXIS Bank's promoting group in different activities of developing the retail business
rapidly and cost viably. Pivot has been utilizing investigation for taking educated
promoting choices.
 P a g e | 35

Fractal will enable the bank to utilize data to achieve new clients and to assemble,
support and boost enduring client connections. Fractal will likewise enable the bank
to take care of the issue of consistently expanding client securing expenses and
diminishing client dedication. The showcasing modified would include obtaining of
clients productively by lessening effort costs, strategically pitching different resource
and risk items to the current clients, consequently, utilizing the current connections
and proactively holding existing clients. Fractal's examination-based advertising
arrangements traverse which the whole lifecycle of client relationship ideal from
client obtaining to client maintenance to client esteem administration, is relied upon to
give AXIS a high ground in understanding the necessities and conditions of their
clients.

1.13.3FINANCE DEPARTMENT

In this cutting-edge period, it is anything but difficult to know how much vital the
back is in the business. As present position of the market is entirely unexpected from
old where it was anything but difficult to get the back.

In any case, now daily it isn't in this way, it is exceptionally troublesome undertaking
to raise reserves from showcase. As today individuals are confronting parcel of issue
and have less certainty available, so it is hard to raise subsidize without appropriate
arranging. For the bank as it is a Financial Institution we can think about back as
backbone of this business.

The organization should figure out how to get adequate back. The organization should
use to keep legitimate making arrangements for the back of its own and of the vast no.
of contributors who are there with the bank. We can characterize financial
administration as an errand of procurement and use of assets required in the business
in a way, so associations objective can be accomplished.

In AXIS Bank, its CFO and Treasurer deal with the fund. Because of legitimate
approaches and separate administration, the organization can have appropriate activity
of back.
 P a g e | 36

BOARD OF DIRECTORS OF AXIS BANK:

DESIGNATION NAME
Chairman Dr.sanjiv misran
MD&CEO Shikha sharma
Director K.N.Prithviraj
Director Prasad menon
Director Sommital
Director Rohit bhagat
Director Ireenavittal
Director Usha Sangwan
Director S.Vishvanathan
ED, Corporate banking V Shrinivasan
ED, Corporate center &CFO Sanjeev kumargupta
Table 1.1

1.13.4Vision & Values:

Vision: To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered enrobes and snort use of technology.

Values:

 Customer Centricity
 Ethics
 Transparency
 Teamwork Ownership

1.13.5Business Description:

AXIS Bank operates in vary segments such as Treasury Operations, Retail Banking,
Corporate/Wholesale Banking and Other Banking Activities.

Retail banking: In the retail banking category, the bank offers Current Accounts
and Saving Accounts product, card serves, Internet banking, amounted teller
machines (ATM) services, depository, financial advisory services, and Non-resident
Indian (NRI) services.
 P a g e | 37

Corporate/wholesale banking: The Bank offers to corporates and other

organizations services including corporate relationship not included under retail
banking, corporate advisory services, project appraisals, capital market related
services and cash management services.

Investment banking: Bank’s Investment Banking business comprises activities

related to Equity Capital Markets, Mergers and Acquisitions and Private Equity
Advisory. The bank is a SEBI-registered Category I Merchant Banker and has been
active in advising Indian companies in raising equity through IPOs, QIPs, and Rights
issues etc. During the fiscal year ended 31 March 2012, Axis Bank undertook 9
transactions include in 5 IPOs and 2 Open offers.

NRI services: Bank provides products and services for NRIs that includes CASA,
facilitate investments in India. Axis bank is the first Indian Bank having TCDC cards
in 11 currencies.

Micro Finance: Axis Bank SME business is segmented in three groups: Small
Enterprises, Medium Enterprises and Supply Chain Finance. Bank offers lending to
individuals/sma11 businesses subject to the Orientation Under the Small Business
Group a subgroup for financing micro enterprises is also set up.

Agri-Finance:

Banks provide various accounts, loans on various products, etc. to farers. Total 759
branches of the bank provide banking services, including in Agricultural loans, to the
farmers.

 Krishi saving accounts

 Kisan power
 Tractor loans
 Godown loans
 P a g e | 38

1.13.6 AXIS Group:

AXIS Bank set-up fully owned 8 subsidiaries which are:

 Axis capital ltd.

 Axis finance ltd.
 Axis mutual funds trustee ltd.
 Axis asset management company ltd.
 Axis private equity ltd.
 Axis trustee services ltd.
 Axis bank UK ltd.
 Axis securities ltd.

1.13.7Products of AXIS Bank:

AXIS Bank has several products in Retail Banking which are categorized as

 Accounts
 Deposits
 Loans
 Cards
 Edge loyalty rewards
 Forex
 Investment
 Insurance

All the products have been sub-categorized as per the benefits of the products which
are as under…

1.13.8 Accounts:

In this category we have different category such as Savings Account, Current-Accounts,

Salary Accounts, etc. which are sub-categorized.

1. Savings Account:
 Basic saving accounts
 Easy access saving accounts
 Prime saving accounts
 P a g e | 39

 Prime plus saving accounts

 Senior privilege saving accounts
 Youth account
 Trust/NGO account
 Pension saving account
 Axis priority saving accounts
 Insurance agent accounts
 Salary account

2. Current Accounts:
 Normal current accounts
 Business advantage current accounts
 Business select current account
 Business privilege account
 Channel one account
 Business global current account
 Capital market current accounts

3. Loan:
Home loan:
Axis Bank offers affordable and Exile housing loans that can turn your dream of
owning a home into reality.
 Features:
Axis bank offers attractive interest rates that make customers housing loan
affordable. Customer has an option to choose between the fixed and floating rates
as per the market scenario. Customer has a facility to transfer their current home
loan of other banks to the AXIS Bank without any Any query related to home
loan or need some help. AXIS Bank Executive will be at your doorstep. There are
no Pre-Payment charges if customer wants to wave off the loan before maturity.
 Eligibility Criteria:
 Salaried Individuals
 Professionals
 Self-employed individuals
 P a g e | 40

Personal Loan:
Be it a dream vacation, child’s education, home renovation or wedding in your
family, you can instantly fulfil your aspirations with Axis Bank Personal loans.

Loan against property:

Apply for Axis Bank's Loan Against Property. Bank gives loan against property
be it commercial or residential or for purchase of new commercial property.

Gold loan:
AXIS Bank gives loan against the Gold Ornaments with the safety of the gold at
the bank’s vaults.

Education loan:
Axis Bank's Education Loan aims to provide the much-needed financial support
to deserving students for pursuing higher professional or technical education in
India and abroad. The education loan would be provided to those students who
have obtained admission to careeroriented courses e.g. Engineering, management
etc., either at the graduate or post-graduate level Within 15 working days from the
date of receipt of application with all the valid documents, decision will be
conveyed by the bank.

Cash Credit:
AXIS Bank offers Cash Credit facilities to meet day-to-day working capital
needs. Cash Credit is provided against the priory security of stock, debtors, other
current assets, etc.

4. Investments:
 Mutual funds
 Axis hybrid funds
 Systematic investments plan (SIP)
 Axis focus
 Axis multi cap fund
 P a g e | 41

 Demat account
5. Insurance:
 General insurance
 Max life guaranteed life time income plan
 Max life maxis super
 Fastbacks plan

1.13.9 24*7 Banking:

Internet Banking: using the internet, one can look-up the status of account, soubrette
queries and undertake a wide range of transactions. In addition to the facility of balance
enquiry, statement of account, request for issue of cheque hook, view personal account
information, details of holding and statement of accounts, etc. Customer be able to wans act
on the account through the Fund Transfer Facile y from the connect account.

AXIS Mobile: AXIS mobile gives a cue anywhere, anytime banking experience. Balance
injury, mini statement, cheque hook request, connect pin regeneration request, Fund transfers
to AXIS account or other bank account (NEFT/RTGS), ball payments.

Interbank Mobile Payment Service: An instant interbank electronic find waster

service through mobile phones. It enables one to send Money to another bank account using
nubile number. The beneficiary doesn’t need to disclose his or her account and other financial
critical details to the sender.

SMS Banking: A watch on account with a round-the-clock SMS Banking service. Every
debit or credit, above the threshold amount, in the account is intimated by an SMS as soon as
for the was action of Rs 5,000/- or crore. It hers the customer to detect any unauthorized
access to the account.

1.13.10 Secure Banking:

AXIS bank always endeavored to provide the best of banking services to the
customers. Its latest initiative fi NETSECURE, which is a Two Factor Authenticate in
system to provide added security to the online banking wans action sand this rake
finds transfers safe and secure.

NETSECURE is a secured system wherein two different parameter, I) login ID and

password, x) a single usage password that one generates £e., OTP: One Tire
 P a g e | 42

Password, are used together to verify your identity on the internet. It ensures high end
security for the online 49

For online fund wasters AXIS has three types of NETSECURE:

i. NETSECURE with SMS:

ii. ETSECURE with Web Pin:
iii. NETSECURE 1-touch:

1.14 SWOT ANALYSIS

Strength

 Axis bank has been given the rating as one of best three positions as far as
speediest development in private division bank.
 The bank has its presence in 1139 cities and towns
 The banks financial positions grow at a rate of 20% every year which a is,
major positive sign for any bank

Weakness

 Lesser no. of branches compared to its competitors

 Image of the bank still under the shadow of the UTI debacle Opportunity
 Expansion in rural areas
 Going to foreign markets and exploring the new economies Threats
 New banking licenses issued by the Reserve Bank of India
 Foreign banks o Competitors

Opportunity

 Expansion in rural areas

 Going to foreign markets and exploring the new economies

Threats

 New banking licenses issued by the Reserve Bank of India

 Foreign banks
 Competitors
 P a g e | 43

1.15 PNB BANK

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1.15.1INTRODUCTION:

Punjab National Bank, abbreviated as PNB, is an Indian nationalized bank.

Headquartered at New Delhi, Delhi, India, it is under the ownership of the Ministry of
Finance, government of India. The bank was founded in May 1894 and is the second
largest government-owned bank in India, both in terms of its business volumes and its
network. The bank has over 180 million customers, 12,248 branches, and
13,000+ ATMs.

PNB has a banking subsidiary in the UK (PNB International Bank, with seven

branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai, and Kabul.
It has representative offices in Almaty (Kazakhstan), Dubai (United Arab
Emirates), Shanghai (China), Oslo (Norway), and Sydney (Australia). In Bhutan, it
owns 51% of Druk PNB Bank, which has five branches. In Nepal, PNB owns 20%
of Everest Bank, which has 50 branches. PNB also owns 41.64% of JSC (SB) PNB
Bank in Kazakhstan, which has four branches.

1.15.2HISTORY:

Punjab National Bank is a PSU working under the government of India regulated by

the Reserve Bank of India Act, 1934 and the Banking Regulation Act, 1949. It was
registered on 19 May 1894 under the Indian Companies Act, with its office
in Anarkali Bazaar, Lahore, in pre-independent India (present-day Pakistan). The
founding board was drawn from different parts of India professing different faiths and
of varying backgrounds, with the common objective of creating a truly national bank
that would further the economic interest of the country. PNB's founders included
several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala
Harkishen Lal, Lala Lalchand, Kali Prosanna Roy, E. C. Jessawala, Prabhu Dayal,
Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated
with the management of the Bank in its early years. The board first met on 23 May
1894.[1] The bank opened for business on 12 April 1895 in Lahore.
 P a g e | 45

PNB is the first Indian bank to have been started solely with Indian capital that
survives to the present earlier Oudh Commercial Bank was established in 1881, but
failed in 1958

1.15.3 Schemes / Products / Services

Punjab National Bank is extensively catering to banking needs of Non-resident

Indians, Importers & Exporters particularly relating to foreign exchange business
including Imports & Exports of Goods & Services as also Remittances etc.
PNB offers various schemes / products /services relating to international banking. the
broad details thereof are as under:
Indo Nepal Remittance Scheme (INREMIT Scheme)
Foreign Currency Non-resident Deposit A/c Scheme (FD)
Non-resident External Deposit A/c Scheme (SB/CA/FD)
Non-resident Ordinary Deposit A/c Scheme (SB/CA/FD/RD)
Foreign Inward Remittances – Rupee Drawing Arrangements / Speed
Remittances with Exchange Houses
Money Transfer Schemes
PNB-NRI REMIT Scheme
Exchange of Foreign Currency Travellers Cheques/Notes
World Travel Card
Buyers` / Suppliers` Credit against Imports into India
Letter of Guarantee (issued on behalf of foreign bank)
Precious Metal Business (on consignment basis)
Gold (Metal) Loan Scheme for Domestic Jewellery Manufacturers.
ECGC – Bank assurance - Selling of policies to exporters

1.15.4PNB BANK HIGHLIGHTS

 PNB Bank providing all Banking Services and Financial Products under one
roof has network of more than 6968 Branches and 9780 ATMs.
 P a g e | 46

 The Bank’s digital strategy is well delineated and strives to meet the
aspirations of the customers for banking at a click of the mouse and banking
on the palm top.
 It is offering various range of Banking Services Like Home Loan Facility, Car
Loan Facility, Education Loans and Health Insurance to its potential
customers.
 Oriental Royal Mediclaim Policy, a Health Insurance designed exclusively for
PNB Customers covers 4 family members under single premium aged between
3 months to 79 years.
 The policy serviced by TPAs (Third Party Administrators) available at large
network of Hospitals has a premium much lower and quite comparable with
all available health insurance products in the market. The Premium Structure
(Inclusive of Service Tax) covers Ambulance charges, cost of Health check-
up, Hospital Cash etc.
 PNB Home Loan Facility has easy applications and quick approvals for
Construction, purchase of House/Flat/Land/Plot and for Repair/Renovation.
The Rate of Interest for amount upto Rs. 75 Lac is MCLR+0.25%m presently
-8.70% and MCLR+0.30%m presently -8.75% for amount above Rs. 75 Lac.
 PNB Car Loan Facility requires minimum Rs. 20000/- p.m. net salary with
repayment up to 84 months and  Interest is chargeable on daily reducing
Balance Basis.
 The PNB Education Loan Scheme aims at providing financial support to
meritorious students for pursuing higher education in India and abroad. The
main emphasis is that a meritorious student, though poor, is provided with an
opportunity to pursue education with the financial support from the banking
system with affordable terms and conditions.
 P a g e | 47

1.16SWOT ANALYSIS:

SWOT Analysis of Punjab National Bank – PNB SWOT Analysis focuses on the
Strength, Weakness, Opportunities and Threats. Strength and Weakness are the
internal factors and Opportunities and Threats are external factors.

PNB or Punjab National Bank is a Public Sector Bank known for its banking and
financial services. Headquarter of PNB is in New Delhi. It is a second largest Public
Sector Bank and founded in the year 1894.

Strengths
 Large Customer Base: PNB is having one hundred and eighty million
customers.
 Large Network of Branches and ATM’s: PNB has 10910 branches, and a wide
ATM network of 13000+ ATMs.
 Acquisition: Some of the Popular Bank like United Bank of India and OBC
(Oriental Bank of Commerce) was merged in PNB on April 1st 2020.
 International Presence: PNB has also marked its presence in United Kingdom
China, Dubai, Hong Kong, Kabul, Bhutan, Kazakhstan and Kowloon.
 Financials: Total Revenue of PNB in the year 2020 was 11 Billion US Dollars
and Net Income was 47 Million US Dollars.
 Large Employee Base: PNB has a large employee base of 103000 employees
as.
 Subsidiaries: PNB Housing Finance, PNB MetLife Insurance, PNB
Investment Services, PNB International Ltd. and PNB Gilts Limited are the
subsidiaries of Punjab National Bank.
 Strong IT Infrastructure: Punjab National Bank has a strong IT Infrastructure.

Weakness
 Presence in Rural Areas: PNB has less presence in rural areas.
 PNB is not giving emphasis on advertising as compared to other public and
private sector banks.
Opportunities
 PNB can also start E-Wallets which are trending in the country.
 E-Gateway can be offered to the website owners at a nominal price.
 P a g e | 48

 Growing demand of Banking in the country creates a good opportunity for the
Bank.
 Bank can give emphasis on business loans to attract more customers.
 Bank can also launch new schemes for Saving Account Holders to increase its
cash deposit ratio.
 Bank can also promote its products by using social media platforms and
advertising platforms like Google Ads and Face book Ads.
Threats
 Fluctuations and Crises in the Economy is the major threat.
 RBI and Government Regulations is also a threat to the Bank.
 New and Old Competitor Banks are also a threat.
 P a g e | 49

CHAPTER:2
RESEARCH METHDOLOGY
 P a g e | 50

RESEARCH METHODOLOGY

A research methodology involves specific techniques that are adopted in research

process to collect, assemble and evaluate data. It defines tools which are useful to
gather relevant information in research studies. Various types of surveys,
questionnaires and studies are common tools of any research. Research methodology
is to be studied in order to check the relevance or any theory along with its
applications. Research methodology helps identify the research activity in a
meaningful manner and thereby analyze it.

2.1 OBJECTIVES OF STUDY

 To study the Customer satisfaction with the service provided by the bank.
 To assess the Role Of modernization in banking sector in India.
 To study the Perception of the customer towards the modern services in the
Banks.
 To identify the Perception and Satisfaction of the Customers with the banks.
 To analyses customer’s feedback on banking services.
 To find the banking sector largely prefer by customer.
 To study the problems faced by the customer in PNB BANK as well as AXIS
BANK and also compare between them.

2.2 HYPOTHESIS OF THE STUDY

 H0: Customers are not thinking axis bank is modern and most technologically
advanced as compare to PNB bank.
 H1: Customers are thinking axis bank is modern and most technologically
advanced as compare to PNB bank.
 P a g e | 51

2.3 LIMITATION OF STUDY

 The restricted sample size was one of the major limitations.

 Detailed study was not possible due to limit.
 The sample size used for the research work may not be sufficient.
 The research is based in only in thane city and other city of the state can be
considered for data collection to attain better results.
 Time, length and depth of study are limited to the Requirements of Mumbai
University.

2.4 SIGNIFICANCE OF STUDY

 Study highlights the preference of customers.

 Research gives indebt knowledge about modern services in axis bank & PNB
bank.
 It will help the bank to understand the customer's point of view about their
services and improve their services.

2.5 SELECTION OF THE PROBLEM

The main aim behind selecting this Subject was to identify customer point of view
about Modernization in banking sector and how many people are aware with the
service of axis bank and PNB bank.

2.6 SAMPLING TECHNIQUES

 Study Population – Bank customer

 Target Population - students and youngsters
 Sampling Method - Random sampling without replacement
 Sampling Size – 40
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2.7 DATA COLLECTION METHODE

 Primary Data: The primary data collection is specially designed to have

information from the customers of the bank. The questionnaire was presented
to them to collect the data.
 Secondary data : The methodology for collecting data with reference to the
secondary data was taken from the following: - 1) Reference books 2) Internet

2.8 TEST OF DATA ANALYSIS

A test can be considered as observation or experiment that determines one or more
characteristics of a given sample, product, process or service. The purpose of testing
involves a prior determination expected observation and a comparison of that
expectation to what one actually observes. Here no test is use for data analysis. Use
only percentage test and graph.
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CHAPTER: 3
REVIEW OF LITRATURE
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LITERATURE REVIEW

These chapter reviews of literature related to the banking industry. The objectives of this
chapter are to the Literature used for purpose of present research work. The chapter deals with
various books, magazine, newspapers, reports and journals which are viewed to gain
background knowledge of the research topic.

Note 5, October 2016, Deepti George

Banks in India, whether large or small, have traditionally been required to adopt similar
strategies to expanding their banking businesses. These strategies have been characterized by
an almost exclusive Originate-To-Hold-till-Maturity (HTM) approach to building their asset
books, with origination strategies that have often been high cost and high risk in nature and
resulting in several anomalies that are currently plaguing the Indian banking system. This
paper seeks to lay out a set of ideas that look at root causes of bank performance, which will
then pave way for the modernization of the sector. At the heart of these recommendations is
an attempt to go back to first principles of banking and to reflect on what banks’
managements and boards (notwithstanding their ownership patterns), and the banking
supervisor need to focus on in order to set the course for a globally competitive banking
sector for India. Some of the important recommendations pertain to a more focused adoption
of approaches and tools that help reveal the true costs of origination which will then lead to
better risk-based pricing, and various steps to be taken to reimaging the role of full-service
banks from being ‘risk originators’ to ‘risk aggregators’ that are well equipped to actively
rebalance their portfolios and use diversification as a strategy for effective risk aggregation.

January 2016, J.JAYARAM, P.M.PRASAD

With the proliferation of technology modernization, Indian banking system has undergone a
massive revolution in its operation and management. This paper will discuss about the trends
of modernization being witnessed in the Indian banking system in last decade. The banking
system of India is in faster pace of development with more focus on inclusive banking system
particularly focusing on drawing the customer's interest. Discussion of its advantages,
significant challenges, and types of modernized banking system is briefed in this paper. This
paper also discusses about the significant studies being carried out by existing research work
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pertaining to customer satisfaction, customer perception, customer adoption, and service

quality.

Reddy (2009)

studied that there was a convergence of performance among public, private and foreign banks
in recent years due to acceptance and adoption of new technology. There was an appreciating
importance of non-interest income in recent years for all banks. Though, PSBs comparing was
extremely poor with the other two categories in terms of profit, PSBs had the highest
efficiency in deposit mobilization. Further, foreign banks and private banks are efficient in
value added services.

“According to Karim, (2010) Indian banking sector had to welcome the transformation in
order to match with the market that resulted from the acceptance of financial liberalization by
the Indian Government. After the transformation, banks have been very much progressive to
come up with those products that have a better match with customer demands and they have
been extremely successful in meeting up the customer needs. This fact is evident from the
continuous injection of products in the financial sphere of Indian economy and accurateness
in giving the customers what they want.”

(Seth, 2009)

Another study depicts that the reforms in banking sector have brought about perceptible
improvement in the overall performance of banks. Indian banking is now operating in a more
competitive setting with induction of new banks, both Indian and foreign who have brought in
new work technology, specialized expertise and a variety of new financing Instruments. The
authorities have move towards simplifying and deregulating the complex administered system
of interest rates and have brought rates into closer alignment with underlying market forces.
There is greater transparency and consistency in banks’ account. The capital status of banks
has also got better by accessing the capital market. Banks are attuning themselves to be
market oriented and also responding sensitively to the changes and monetary circumstances.

(Roland)

“While the transition process in the banking sector has certainly not yet come to an end,
sufficient time has passed for an interim review. The objective of the particular paper
therefore is to assess the progress made in liberalizing the banking sector so far and to test if
the reforms have allowed the banking sector to better perform its functions.”
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Kumar, Malathy and Ganesh, 2010

“A study on reforms in banking sector says that before the nationalization of large banks in
1969 and 1980, Government-owned banks dominated the banking sector. Due to the scarcity
of competition, the use of technology was minimal and quality of service was not considered
for performance evaluation.”

Mohanlal Sharma (1979)

"Structural changes in Indian commercial banking system since 1969: A study of portfolio
profits and policy" analyzed the effects of nationalization on the banking industry in India.

T. Radha (2003)

impact of Banking sector reforms on the Performance of commercial banks in India 1989- 90
to 1998-99-studied the effects of the Narasimham committee recommendation on the banking
industry.

Dr. N. Bharathi (2007)

in her article Indian Banking and Finance - A Paradigm Shift- wrote that the banking
industry is currently in a transition phase.

Dun & Bradstreet (2008) (an international research body)" India's Top Banks 2008"

there has been a significant growth in the banking infrastructure of India. Taking into account
all 82 banks in India, there are overall 56,640 branches or offices, The total assets of all
scheduled commercial banks by end-March 2010 is approximately Rs 40, 90,000 crore.

VM Kumbhar (2009)

A modern practice in India " the Indian banking sector has witnessed major transformation
during the last 40 year. It has passed through various phases. In the process, it has embraced
superior technology, new products and services that are customer centric.

Indian Bankers Association & McKinsey ( 2010)- Indian Banking 2010

Towards High Performing SectorAnalysis the state of Indian Banking Industry in the
Financial year 2010.

ICRA (2011) Indian Banking Sector

Challenges Unlikely to Derail the Progress Made- Analysis’s the various challenges &
opportunities that stand in front of the Indian Banking Industry.
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Chakrabarti and Chawla (2005)

Conducted a study on bank efficiency in India since the Reforms. They apply the
increasingly popular methodology of Data Envelopment Analysis (DEA) to evaluate the
relative efficiency in Indian banks during the period 1990- 2002 after selecting 70 banks out
of over 100 commercial banks operating in India. This study suggests that on a ‘value’ basis,
the foreign banks, as a group, have been considerably more efficient than all other bank
groups, followed by the Indian private banks. From a ‘quality’ perspective, the Indian private
banks dominate with foreign banks coming up last.

Bhayani (2005)

Conducted an empirical study on retail banking awareness among 200 customers having their
current accounts with private banks, nationalized and co-operative banks in the Rajkot city of
Gujarat. The objective of this study was to compare the services provided by different private
sector banks in the Rajkot city and also to know the customers’ awareness about the services
provided and how often they utilized these services. This study concluded that in India, due to
various factors like illiteracy etc, the IT awareness of the customers was still very low. So, the
banks needed to put major efforts towards educating the customers for building up an ‘IT
savvy customer base’.

Srivastava, Halani and Bajpai (2006)

conducted a study on the impact of banking reforms on role clarity of Indian public sector
bank employees. Role clarity is one of the important factors at work culture. This study is
based on about 120 respondents selected randomly from middle and top-level management of
five different branches of one of the topmost public sector bank in the Chhattisgarh region. A
questionnaire developed by Sinha(1990) was used for ascertaining the degree of role clarity.
The items reliability of questionnaire was found to be 0.785 (Cron batch alpha value). The
outcome of this indicates that role clarity of public sector bank employees has increased in the
postreform era.
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Prakash (2006)

conducted a study on implementation of Basel Norms in Indian banking sector. The main
objective of this study is to observe whether Indian banks, particularly the public sector banks
are ready to implement Basel Norms within the outer limit of year 2006. This study concludes
that banks in India particularly public sector banks are ready to migrate to Basel Accord II
only at a conceptual and academic level. They have to travel a long distance when it comes to
organizational and technological readiness to go ahead, only then they can compete with
international competition smoothly.

A study was conducted by Dey and Maji (2006)

“Need to Improve Customer Service in Banks: An Indian Perspective”. An attempt has been
made in this study to show the reasons behind Indian banks’ increase in their business levels
under retail banking in tough competition and the factors that determine better customer
service. This study concludes that banks should try to retain their existing customers because
the cost of retaining a customer is much lower than the cost of acquiring a new customer and
to retain customers banks should focus on customer needs and wants and increase
continuously their service standards levels.

Negi and Thakur (2006)

A study was conducted by Negi and Thakur (2006) on Online Banking. This study attempts
to examine whether banks can meet their client’s expectation through online and internet in
the competitive environment. Concept of on-line banking, evaluation of online banking, types
of on-line banking, how on-line banking helps, current on-line banking products, advantages
of on-line banking, on-line banking on Indian perspective, future of online banking are
discussed in details in this study. Lastly, this study concludes that on-line banking has become
a necessary weapon and is fundamentally changing the banking industry world wide.

Agrawal, S. (2017)10 –

Studied Impact Of Customer Relationship Management On Indian Banking Sector . The

banks taken for the study were SBI, PNB, BOB, ICICI Bank, HDFC Bank. For the study,
both Primary and Secondary data have been collected. The main objective of the present
study will be to assess the awareness of CRM, to analyze the level of customer centric from
both customer and employee point of view and to evaluate the service quality offered by the
banks. While analyzing CRM process , it is seen from that there are many similarities and
differences in collecting information about customers . Researcher concluded that It ends with
organizing the business and activity of the banks in such a way that the customer’s needs and
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expectations are identified and satisfied in the best possible manner. Further Researcher
suggested that they should try to safeguard the interest of their customers and try to avoid any
unfair practices going on in the organization.

Vashisht, A., & Wadhwa, B. (2013)18

Studied E-banking an initiative for customer relationship management vis a vis SBI. The
researchers have used both secondary and primary data. For this Chi square analysis was
performed on the data obtained. Objective of research was to study the impact of change
brought by CRM and e-banking on the customers of SBI . The researchers in the study
analyzed and found people in the age group of 20-30 prefer using ATM or internet banking.
We can say that they prefer electronic channel of banking. Researcher concluded that In spite
of all the short coming peoples are loyal with the bank. Researcher suggested that A literacy
program at the bank location or at the customer’s choice are a can be given.

Uppal R K and Poonam Rani (2012),

in their study titled Customer Perception towards Better Banking Services in India- An
Empirical Study, analyzed customer perception about CRM, reliability, accuracy, security and
transparency among the customers of public sector banks, Indian private sector banks and
foreign banks in Amritsar, Punjab. They have found that most of the customers are satisfied
with banking services and that customer satisfaction can be improved by ensuring more speed
in rendering transactions and giving prompt services.

D Mishra (1997)

makes a study on the performance of commercial banks in India choosing relevant parameters
like quality of service, risk management, profitability etc. .He identifies four challenges for
the bank namely competition, credit, customer and control.

Gaganjot Singh (1998)

in his study “New innovations in banking industry – a study of new private sector banks”
views that the new private sector banks in India are using better technology and are offering
better services to the customers. The new private banks have emerged as a model to the
banking industry in terms of service levels, ambience, technology etc. As the public-sector
banks have already established a huge customer base, they become complacent and are slow
to become customer friendly. They are also less innovative in the use of technology-assisted
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customer service. Because of their huge customer base, they feel that they can withstand
competitions from new generation banks.

Parimal Vyas (2000)

studied customers’ satisfaction from the services provided by different banks and analyzed
the response of customers towards the actual time taken by banks to complete the banking
transactions. The findings of the study revealed that nationalized banks and co-operative
banks need to improve on reducing the time taken to complete banking transactions.
Comparatively the private and foreign banks take much less time for completing their
transactions. The study suggested that the nationalized commercial banks and cooperative
banks must increase the use of information technology and customer relationship
management to deliver standardized services to their target customers.

Mosad Zineldin (2005)

in his study “Quality and Customer Relationship Management as Competitive Strategy in the
Swedish Banking Industry” stated that a bank had to create customer relationships that deliver
value beyond that provided by the core product. This involved added tangible and intangible
elements to the core products, thus creating and enhancing the “product surrounding.” One
necessary condition for the realization of quality was the creation of value-added services,
quality measurement and control. Thus, it was an important function to ensure the fulfillment
of given customer requirements. The key ways for building a strong competitive position
were value-added services and differentiation.
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REFERENCES:

 Vidya, M., & Shanthi, R. (2021). Analyzing Electronic Customer Relationship

Management (e-CRM) Performance of Public Sector Banks in Chennai City.
Psychology and Education Journal, 58(1), 2215- 2227.
 Kaur, J. (2020). Customers’ perception of current CRM practices at SBI: A
case study of State Bank of India, Patna District, Bihar. Journal of
Management Research and Analysis, 5(3), 293-297.
 Meghani, K. (2020). A Study on Effectiveness of Customer Relationship
Management in the Nainital Bank Ltd.(At Vikasnagar Branch). International
Journal Of Core Engineering & Management, 6.
 Kalaiarasi, G., & Mugunthan, C.(2019). Importance of customer relationship
management (CRM) in Indian banking sector
 Agrawal, V. (2019). Customer Relationship Management Practices in
Banking: A Comapartive Study of SBI and ICICI Bank. Research Journal of
Humanities and Social Sciences, 10(4), 1025-1028.
 Mathew, S.(2019) A Study on Customer Relationship Management of State
Bank of India in New Panvel.
 Ashraf, E.(2018).Customer Relationship Management and Customer
Satisfaction: A Comparison between Public and Private Sector Banks in
Kerala.
 Baral, S. K., & Mohanty, B. D. (2017). Customer Relationship Management
Practices in SBI: Perceptions of the Customers. Asian Journal of Research in
Business Economics and Management, 7(2), 45-58.
 Baral, S. K. (2017). Customer Relationship Management and Performance
Improvement of SBI: An Empirical Analysis. Asian Journal of Research in
Banking and Finance, 7(11), 17-31.
 Agrawal, S. (2017). Impact Of Customer Relationship Management On
Indian Banking Sector (No. 2017-06-10).
 P a g e | 62

 Veni, K. P., & Gayathri, V. (2016). A Study on Customer Relationship

Management Practices Followed by State Bank of India Branches with Special
Reference to Virudhunagar. Shanlax International Journal of Management,
3(4), 1-8.
 Poranki, K. R. & AbulKhair, M.( 2016).The impact of Customer Relationship
Management on Indian Insurance Companies: A Case Study of SBI Life,
Visakhapatnam, India.
 Bezovski, Z., & Hussain, F. (2016). The benefits of the electronic customer
relationship management to the banks and their customers. Research Journal
of Finance and Accounting, 7(4), 112-116.
 Azzam, Z. A. M. (2014). The impact of customer relationship management on
customer satisfaction in the banking industry–a case of Jordan. European
Journal of Business and Management, 6(32), 99-112.
 Ramya, S., Rajam, K., & Sivasubramanian, D.(2014) A study on customer
relationship management role in selected bank employees of tiruchirappalli
district (special reference to sbi and icici).
 Dhingra, M., & Dhingra, V. (2013). Determinants of Electronic customer
relationship management (eCRM) for customer satisfaction in banking sector
in India. African Journal of Business Management, 7(10), 762-768.
 Hoseini, S. H. K., & Naiej, A. K. (2013). Customer relationship management
and organizational performance: A conceptual framework based on the
balanced scorecard (Study of Iranian banks). IOSR Journal of Business and
Management (IOSR-JBM), 10(6), 18-26.
 Vashisht, A., & Wadhwa, B. (2013).E-banking an initiative for customer
relationship management vis a vis SBI.
 Bhat, S. A., & Darzi, M. A. (2013). Customer relationship management: A
review of Indian banking sector. The Bus. Rev, 17(1-2), 58-67.
 Sharma, S., Kishor, J., Sharma, R., & Singh, V. K. (2013).CRM as an
Imperative Approach for ebanking: Perception of Customers towards AXIS,
PNB, ICICI & HDFC of Roorkee, Uttarakhand.
 Das, S. K. (2012). Customer relationship management in banking sector: a
comparative study of SBI and other nationalized commercial banks in India.
Arth Prabandh: A Journal of Economics and Management, 1(6), 2278-0629.
 P a g e | 63

 Parida, B. B., & Baksi, A. K. (2011). Customer retention and profitability:

CRM environment. SCMS Journal of Indian Management, 8(2), 66.
 Vijayakumar, T., & Velu, D. R. (2011). Customer Relationship Management
in Indian Retail Banking Industry. International Journal of Management (IJM),
2(1), 41-51.
 Hong-kit Yim, F., Anderson, R. E., & Swaminathan, S. (2004). Customer
relationship management: Its dimensions and effect on customer outcomes.
Journal of Personal Selling & Sales Management, 24(4), 263-278.
 Gupta, M. P., & Shukla, S. (2002). Learnings from customer relationship
management (CRM) implementation in a bank. Global Business Review, 3(1),
99-122
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CHAPTER: 4
DATA ANALYSIS, INTERPRITATION &
PRESENTATION

Data Analysis, Interpretation & Presentation

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4.1 Meaning

Data analysis is a process of inspecting, clearing, transforming and modeling data

with the goal of discovering useful information, informing conclusion and supporting
decision making.

4.2 Tools of Data Analysis

Data analysis tools make it easier for user to process and manipulate data, analyses
that Relationship and correlations between data sets, and it also help to identify
patterns and Trends for interpretation. Here is a complete list of tools.

1. Editing: The editing of data is a process of examining the raw data to detect errors
and omissions and to correct them. If possible, so as to ensure legibility,
Completeness, consistency and accuracy.

2. Classification: In most research studies, voluminous raw data collected through a

survey need to be .Classification of data, which in simple term is the process of
arranging data in Groups or classes on the basis of some characteristics.

3. Coding: Coding refers to the process of transforming collected information or

observation or observations to set of meaningful, cohesive categories.

4. Tabulation: Tabulation is a way of processing information or data by putting it in

table. Tabulation is used for summarization and consideration of data.

5. Graph: Graphic representation is another way of analysing numerical data. A

graph is a Set of chart through which statistical data are represented in the form of
lines or Curves drawn across the coordinated points plotted on its surface. Graph
enables us in studying the case and effect relationship between two variables.

4.3 Tests of Data Analysis

A test can be considered an observation or experiment that determination one or More

characteristics of a given sample, product, process or service. The purpose of testing
involves a prior determination expected observation and a comparison of that
expecting to what one actually observes. Here on test is used for data Analysis. Use
only percentage test and graph.
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4.4 DATA COLLECTION FROM RESPONDENTS

Q.1 Age?

Variables frequency Percentage

15-30 29 72.5%
30-40 3 7.5%
40-60 5 12.5%
60 above 3 7.5%
TABLE 4.1

DIGRAM 4.1

Interpretation:
The data related to above information, it has interpreted that 72.5% respondents are
15-20 years, 7.5% respondents are between 30-40 years, 12.5% respondents are
between 40-60 years. Thus below 20 age group is the highest group of respondents
and above 60 age group is the lowest.

Q2.Area?

Variables frequency Percentage

Urban 31 77.5%
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Rural 9 22.5%
Table 4.2

Diagram 4.2

Interpretation:
The data related to above information, it has interpreted that77.5 % respondents are from
urban area, 22.5 % respondents are from rural area, Thus urban area is the highest group of
respondents and rural area is the lowest.

Q.3 Qualification?

Variables Frequency Percentage

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SSC 5 12.5%
HSC 5 12.5%
Under graduate 24 60%
Post graduate 5 12.5%
Graduate 1 2.5%
Table4.3

Diagram 4.3

Interpretation:
The data related to above information, it has interpreted that 60 % respondents are
under graduates, 12.5% respondents are graduates, 12.5% respondents are secondary
school student, 12.5% respondents are post graduates, 2.5% respondents are graduate.
Thus under graduate is the highest group of respondents and graduate is the lowest.

Q.4 what type of account holder you are?

Variables Frequency Percentage

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Current 7 17.5%
saving 25 62.5%
Fixed deposit 5 12.5%
No 2 5%
Table 4.4

Interpretation:

The data related to above information, it has interpreted that 62.5 % respondents are holding
saving account, 17.5 % respondents are holding current account. Thus saving account holder
is the highest group of respondents and fixed deposit holder is the lowest.

Q.5 Type of bank?

Variables Frequency Percentage

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Public sector 16 40%

Privet sector 22 55%
Co-operative 1 2.5%
No 1 2.5%
Table 4.5

Diagram 4.5

Interpretation:

The data related to above information, it has interpreted that 55 % respondents are holding
account in privet sector bank, 40% respondents are holding public sector bank account. Thus
privet sector account holder is the highest group of respondents and co-operative bank
account holder is the lowest.

Q.6 Frequency of visiting the bank?

Variables Frequency Percentage

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daily 6 15%

weekly 6 15%

monthly 15 37.5%

Occasionally 13 32.5%

Table 4.6

Diagram 4.6

Interpretation:

The data related to above information, it has interpreted that 37.5% respondent are
monthly visiting the bank, 32.5% respondent are occasionally visiting the bank. Thus
the group of monthly visiting bank is highest group of respondent and daily visiting
group of respondent is lowest.

Q.7 How long you have been known the modern services? (in years)
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Years Frequency Percentage

Less than 1 7 17.5%

1-3 20 50%

4-6 12 30%
Table 4.7

Diagram 4.7

Interpretation :

The data related to above information, it has interpreted that 50 % respondents are have been
known modern services from 1-3 year, 30 % respondents are aware about modern services by
4-26years,17.5 % respondent are from less than 1 year. Thus 1-3 years is the highest period
and less than 1 year is the lowest.

Q.8 how much time taken to do the modern banking services?

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Variables Frequency Percentage

10-30 minutes 31 77.5%

30-60 minutes 4 10%

More than 60 minutes 5 12.5%

Table 4.8

Diagram 4.8

Interpretation:

The data related to above information, it has interpreted that 77.5% customer are
taking 10-30 minutes to do modern services in bank, 10% customer are taking 30-60
minutes and 12.5% customer are taking more than 60 minutes.

Q.9 what are the problems in the modern banking services?

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Diagram 4.9

Interpretation:

The data related to above information it has interpreted that, different types of
problems are facing by the customers while doing the modern services of the bank.

Q.10 how do you perceive in adapting to modern banking services ?

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Variables Frequency Percentage

Easy 22 55%
Moderate 17 42.5%
Difficult 1 2.5%
Table 4.10

Diagram 4.10

Interpretation:

The data related to above information it has interpreted that, 55% banking customer is
doing modern services easily, 42.5% customer in moderate position and 2.5%
customer are facing difficulty.

Q.11 which bank do you consider as most technologically advanced?

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Variables Frequency Percentage

Axis bank 36 90%
PNB Bank 4 10%
Table 4.11

Diagram 4.11

Interpretation:

The data related to above information it has interpreted that 90% customer consider
axis bank as most technologically advanced and 10% customer consider PNB bank.

Q.12 Do you think axis bank is more modern as compare to PNB bank?
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Variables Frequency Percentage

Yes 24 60%
No 4 10%
Maybe 12 30%
Table 4.12

Diagram 4.12

Interpretation:

The data related to above information, it has interpreted that 60% respondents are
thinking axis is more modern as compare to PNB bank , 10% respondents are not
thinking the same, 30% respondents are not sure about it.
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4.5 Hypothesis Testing

After data analysing and interpretation and presentation the testing of hypothesis is
done. Testing of hypothesis means to find out whether our assumption is true or false.
In this, sometimes Null hypothesis gets selected or Alternative hypothesis. Only one
will get selected or Alternative hypothesis. Only one will get select not both of them.
If one is selected then others has to reject. If null is selected then alternative has to
reject or vice versa.

H0 : Customers are not thinking axis bank is modern and most technologically
advanced as compare to PNB bank.

H1 : Customers are thinking axis bank is modern and most technologically advanced
as compare to PNB bank .

Result: As per Table 4.11and diagram 4.11 it has observed that – 90% respondents are
thinking axis bank is most technologically advanced and 10% respondent are not
thinking the same. As per Table 4.12 it has observed that – 60% respondents are
thinking axis bank is more modern as compare to PNB Bank satisfied and 10% are
not in favor which is more than 25%respondent are not sure about it.. From the data ,
researcher come to the conclusion that

H1- i.e. Alternate Hypothesis is accepted as customers are thinking axis bank is
modern and most technologically advanced as compare to PNB bank. Which means,
the H0 i.e. Null Hypothesis is rejected.
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CHAPTER:5

CONCLUSION, SUGGETIONS
& FINDINGS

5.1 FINDINGS
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 Majority of the respondents are 15-30 years of age and undergraduates.

 Majority of the respondents are unemployed and saving account holders.

 More than 77% respondents are from urban area.

 More than 55% of respondents having a bank account in private sector banks
and 60% respondent willing to open bank account with axis bank.

 From the analysis 40% respondents are visiting their banks on monthly basis
and more than 35% respondents are having a bank account from last 5-10
years.

 Majority of respondents are very well known about the modern services
offered by bank and 55% respondents are feeling easy in adapting modern
bank services.

5.2 SUGGETIONS

 AXIS Bank was one of the first private banks to launch operations in the
country in 1994, after the Government of India passed a resolution in favor of
privatization. An IT savvy bank, AXIS Bank is a pioneer in adopting modern
technologies in the banking sector. It a very large network of branch offices
and extension counters across the country
 AXIS Bank needs to promote and encourage people to use internet banking

 In terms of ease of access AXIS Bank needs to increase the number of ATM’s
 The Bank should be more flexible to compete with its competitors like HDFC,
ICICI.
 Mostly benefit class people lean toward the Axis bank in the correlation of
business and understudies and different class people along these lines it needs
to advance its item and administrations that are offered predominantly for the
business class individuals and understudies. Since these two class frames
significant clients of the keeping money administrations.

5.3 CONCLUSION
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 Much is changing in the banking landscape - with regulation, technology,

demographics, customer expectations, greater competition and issues with
banks’ own legacy business and operating kneels. The challenges are clear,
even if the karate endgame is not.
 The contemplate primarily was on the client introduction that how they think,
what they need from their banks and how they take choice heading off to any
bank.
 In this examination I found that the obligation of Axis Bank with its clients is
great, since Axis Bank essentially centers on holding their clients.
 This considers finds that anyway Axis Bank isn't the main restricted area bank,
however its huge scope of items and accessibility of choices improve it one of
the banks in India.
 The bank should give careful consideration on giving updates and should
expand the level of administration giving because the contenders of Axis are
better around there.
 The bank should attempt to expand the utilization of innovation like versatile
and net managing an account among its clients.
 Private sector banks are more technologically advanced and modern but public
sector banks are also adapting modern technology for better services for the
customers.
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BIBLIOGRAPHY &
ANAXURE

BIBLIOGRAPHY

 http://www.researchgate.net/
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 www.axix.co.in
 www.pnb.co.in

 https://www.businesstoday.in/current/economy-politics/pm-modi-to-
open-650-branches
of-india-post-payments-banks-soon-manoj-sinha/story/280882.html “PM
Modi to open 650 branches of India Post Payments Bank soon.” (2018)

 https://economictimes.indiatimes.com/industry/banking/finance/
banking/india-post payments-bank-crosses-2-cr-customer
mark/articleshow/74337548.cms?from=mdr “India Post Payment
Bank crosses 2 Cr customer mark” (2020)

 https://bijlipay.co.in/blog/need-payment-banks-india/ “Why do we need

payment banks in India ?.”

 https://www.techcircle.in/2019/12/26/payments-banks-fy19-losses-
increase-21-rbi/ “Payments banks’ FY19 losses increase 21%: RBI.”
(2019)

 https://m.rbi.org.in//Scripts/AnnualPublications.aspx?head=Trend%20and
%20Progress% 20of%20Banking%20in%20India “RBI report (2018)

 http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?pr “RBI
releases Guidelines for licensing of Payment banks” (Nov 27,2014)

 https://economictimes.indiatimes.com/industry/banking/finance/banking/
driving
financial-inclusion-from-panacea-to-pain/articleshow/69226977.cms?
from=mdr (2016)
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 Vidya, M., & Shanthi, R. (2021). Analyzing Electronic Customer Relationship

Management (e-CRM) Performance of Public Sector Banks in Chennai City.
Psychology and Education Journal, 58(1), 2215- 2227.
 Kaur, J. (2020). Customers’ perception of current CRM practices at SBI: A
case study of State Bank of India, Patna District, Bihar. Journal of
Management Research and Analysis, 5(3), 293-297.
 Meghani, K. (2020). A Study on Effectiveness of Customer Relationship
Management in the Nainital Bank Ltd.(At Vikasnagar Branch). International
Journal Of Core Engineering & Management, 6.
 Kalaiarasi, G., & Mugunthan, C.(2019). Importance of customer relationship
management (CRM) in Indian banking sector
 Agrawal, V. (2019). Customer Relationship Management Practices in
Banking: A Comapartive Study of SBI and ICICI Bank. Research Journal of
Humanities and Social Sciences, 10(4), 1025-1028.
 Mathew, S.(2019) A Study on Customer Relationship Management of State
Bank of India in New Panvel.
 Ashraf, E.(2018).Customer Relationship Management and Customer
Satisfaction: A Comparison between Public and Private Sector Banks in
Kerala.
 Baral, S. K., & Mohanty, B. D. (2017). Customer Relationship Management
Practices in SBI: Perceptions of the Customers. Asian Journal of Research in
Business Economics and Management, 7(2), 45-58.
 Baral, S. K. (2017). Customer Relationship Management and Performance
Improvement of SBI: An Empirical Analysis. Asian Journal of Research in
Banking and Finance, 7(11), 17-31.
 Agrawal, S. (2017). Impact Of Customer Relationship Management On
Indian Banking Sector (No. 2017-06-10).
 Veni, K. P., & Gayathri, V. (2016). A Study on Customer Relationship
Management Practices Followed by State Bank of India Branches with Special
Reference to Virudhunagar. Shanlax International Journal of Management,
3(4), 1-8.
 Poranki, K. R. & AbulKhair, M.( 2016).The impact of Customer Relationship
Management on Indian Insurance Companies: A Case Study of SBI Life,
Visakhapatnam, India.
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 Bezovski, Z., & Hussain, F. (2016). The benefits of the electronic customer
relationship management to the banks and their customers. Research Journal
of Finance and Accounting, 7(4), 112-116.
 Azzam, Z. A. M. (2014). The impact of customer relationship management on
customer satisfaction in the banking industry–a case of Jordan. European
Journal of Business and Management, 6(32), 99-112.
 Ramya, S., Rajam, K., & Sivasubramanian, D.(2014) A study on customer
relationship management role in selected bank employees of tiruchirappalli
district (special reference to sbi and icici).
 Dhingra, M., & Dhingra, V. (2013). Determinants of Electronic customer
relationship management (eCRM) for customer satisfaction in banking sector
in India. African Journal of Business Management, 7(10), 762-768.
 Hoseini, S. H. K., & Naiej, A. K. (2013). Customer relationship management
and organizational performance: A conceptual framework based on the
balanced scorecard (Study of Iranian banks). IOSR Journal of Business and
Management (IOSR-JBM), 10(6), 18-26.
 Vashisht, A., & Wadhwa, B. (2013).E-banking an initiative for customer
relationship management vis a vis SBI.
 Bhat, S. A., & Darzi, M. A. (2013). Customer relationship management: A
review of Indian banking sector. The Bus. Rev, 17(1-2), 58-67.

ANNEXURE
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 SURVEY QUESTIONAIR

 Questionnaire on topic “MODERNIZATION IN BANKING

SECTOR IN INDIA AXIS BANK V/S PNB BANK”

This questionnaire is for educational Purpose Only.

NAME *

Your answer

GENDER *

 Male
 Female
 Prefer not to say

AGE *

 15-30
 30-40
 40-60
 60 above

AREA *

 Urban
 Rural
 Other:


QUALIFICATION *

 SSC
 HSC
 Under graduate
 Post graduate
 Other:
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OCCUPATION *

 Job
 Business
 Homemaker
 Student
 Other:

What is your monthly income? *

 10000
 20000
 30000
 40000
 40000 above

1] Do you have bank account? *

 Yes
 No
 Maybe

2] What type of account holder you are? *

 current
 saving
 fixed deposit
 Other:

3] Type of bank *

 private bank
 public bank
 Other:
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4] Would you be interested in opening a bank account with- *

 Axis bank
 PNB Bank
 Other:

5] Frequency of visiting the bank *

 daily
 weekly
 Monthly
 Occasionally

6] Number of years you have the account *

 Less than-1year
 1-5 years
 5-10 years
 More than 10 years

7] Type of transaction you are using on regular days *

 withdrawal
 deposit
 balance inquiry
 passbook updating
 investment
 money transfer
 Other:


8] How do you aware the modern banking services provided by bank? *

 prospectus
 self analysis
 banking
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 news paper
 friends
 relatives

9] How long you have been known the modern services? (In years) *

 less than-1
 1-3
 4-6
 :


10] Time taken to do the modern banking services *

 10-30 minutes
 30-60 minutes
 more than 60 minutes

11] Advantages in the modern banking services *

 convenience
 speedy transaction
 reduce waiting time
 anywhere and anytime services
 self service
 Other:

12] How do you perceive in adapting to modern banking services? *

 Easy
 Moderate
 Difficult

13] Which bank do you consider as most technologically advanced? *

 Axis bank
 PNB bank
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14] Do you think that axis bank is more modern as compare to PNB bank? *

 Yes
 No
 Maybe

15] Do you think that axis bank is more expensive as compare to PNB bank?

 Yes
 No
 Maybe

16] Do your bank have core banking facility for the customer?

 Yes
 No
 Other:


17] How would you rate your experience with your current bank? *

 1
 2
 3
 4
 5

18] When do you think of your bank what comes first in your mind? *

Thanks for providing your valuable time and co-operation in this

study.