Canara Bank Study

CHAPTER 1:EXECUTIVE SUMMARY
INTRODUCTION.
Widely known for customer centricity, Canara Bank was founded by Shri Ammembal Subba Rao Pai,
a great visionary and philanthropist, in July 1906, at Mangalore, then a small port town in Karnataka. The
Bank has gone through the various phases of its growth trajectory over hundred years of its existence.
Growth of Canara Bank was phenomenal, especially after nationalisation in the year 1969, attaining the
status of a national level player in terms of geographical reach and clientele segments. Eighties was
characterised by business diversification for the Bank. In June 2006, the Bank completed a century of
operation in the Indian banking industry.And in the year 2021 Syndicate bank was also merged into Canara
bank.The net profit of Canara bank of the year 2022 march is 5678.42 crores.
The Government of India approved the amalgamation of Syndicate Bank into Canara Bank to make it a
globally competitive lender. With the amalgamation, the new bank will become the fourth largest bank
after State Bank of India, PNB+OBC+United Bank of India & Bank of Baroda (as at Dec 2019). Any
amalgamation of one or more banks provides a broader geographic footprint and helps to derive the benefit
of size, scale, strength. Now, the combined entity has a network of close to 10,396 branches and
approximately 13,408 ATMs across India (Canara Bank – 8,837 ATMs & 6,333 Branches, Syndicate Bank
– 4,571 ATMs & 4,063 branches). The bank also has offices abroad in London, Hong Kong, Moscow,
Shanghai, Doha, Dubai, and New York.
Canara Bank offers a host of banking and value added services to its customers, which include Personal
Banking Services, Corporate Banking Services, NRI Banking Services and Priority & SME Credit
Services. The Bank also launched Canara Bank RuPay Debit Card, Canara Club Card - Debit, Canara
Secured Credit Card, Canara Elite Debit Card, Canara Bank Platinum Rupay Cards, Platinum Rupay Card
and EMV Chip Cards under debit and credit cards. Online Savings Bank and PPF account opening were
introduced during the year. The Bank made several value additions under internet banking and mobile
banking services.
Other than its remarkable developments in the area of commercial banking, it has also marked its
significance in various corporate social responsibilities namely, serving national priorities, promoting rural
development, enhancing rural self-employment through several training institutes and spearheading
financial inclusion objective. Promoting an inclusive growth strategy, which has been formed as the basic
plank of national policy agenda today, is in fact deeply rooted in the bank's founding principles. "A good
bank is not only the financial heart of the community. but also one with an obligation of helping in every
possible manner to improve the economic conditions of the common people. These are the insightful words
of the founder that continues to lay the foundation for banking activities.
1
PROJECT TITLE.
“Analysis on Effectiveness of Banking Services provided by Canara Bank in Rural
Areas”.
NEED FOR THE STUDY:
It is very necessary to understand organisation study, to know about management of the Bank.To know
about services offered, departments, coordination among the departments of the bank. The
very need of this study is to know overall functioning of the organisation to get practical knowledge.
This study is also necessary to know the strength, problems and opportunities for the bank that
helps to give necessary recommendations for future improvement. And to know the measures taken by
the bank to improve the life’s of rural areas
OBJECTIVES OF THE STUDY.
➢ To study about the establishment, and the Management of The Canara bank.
➢ To study about overall working conditions of the bank.
➢ To study about the concept of Rural areas financial development.
➢ To study about the Services offered by Canara bank.
➢ To know about the key Departments of the bank.
➢ To know about the nature of the bank.
➢ To highlight various initiatives taken by Canara Bank in the area of financial
inclusion.
➢ To assess the progress of the bank in its contribution to the policy of financial
inclusion.
2
SCOPE OF THE STUDY.
➢ It helps to know about the profile, performance and recent development

of services and the Banking sector
➢ It helps to understand work process of bank
➢ It gives the scope to understand services offered by the bank in rural areas such as home loans,
agricultural loans, gold loans..etc
➢ This study helps to understand factors influencing banking services
METHODOLOGY.
There are two sources of data collection they are;
1.PRIMARY DATA
2.SECONDARY DATA
1. Primary data:-Data collected specifically for a research project on first hand by the
investigator conducting the research.
Sources of primary data
➢ Personal interaction with the Branch manager and with the Employees.
➢ Observation
2.Secondary data
The data for present study has been collected mainly from secondary sources. such as Internet,
Magazines and Periodicals
Sources of secondary data
➢ https://canarabank.com
➢ Newspaper,Articles, and Journals.
➢ Internet.
3
FINDINGS OF THE STUDY.
• The study reveals that 26% of the Data that is13 persons were 18-24 years old. 38% of the Data
that is 19 persons are 25-32 years old. 24% of the Data that is 12 persons are 33-40 years old. And
12% of the Data that is 6 persons are 40 years and above.
• The study reveals that the 20% of the Data that is 10 persons are students. 30% of the Data that is
15 persons are job holders. 14% of the Data that is 7 persons are professionals. And 36% of Data
that is 18 persons are business commencing people.
• The study reveals that the data represents that the 28% of the Data that is 14 persons are just
studied their school level. 24% of the Data that is 12 persons completed their Pre university
college. 40% of the data that is 20 persons completed graduation. And 8% of the data that is 4
persons have completed their Post graduation.
• The study reveals that the data shows that the 46% of the data that is 23 persons have the annual
income below 1 lakh. 36% of the data that is 18 persons have the annual income of 1-3 lakhs.
16% of the data that is 8 persons have annual income of 3-10 lakhs. And only 2% of the data that
is only 1 person has the income of 10 lakhs and above.
• The study reveals that the 54% of the data that is 27 people have agreed that bank caters all their
needs. And rest of the 46% that is 23 people have disagreed that bank caters their need.
• The study reveals that the data shows that 8% of the data that is 4 people have the account from
past 6 months. 10% of the data that is 5 people have their accounts from past 1 year. 18% of the
data that is 9 people have the account from past 3 years. And the 64% of the data that is 32 people
have the account with this bank from past 3 years and above.
• The study reveals that the data shows that 60% of the data that is 30 people maintain savings
account with this bank. 8% of the data that is 4 people maintain current account. 16% of the data
that is 8 people have loan account. And 16% of the data that is 8 people have student account in
this bank.
• The study reveals that the data shows that 6% of the data that is the 3 people have agreed that
their bank give more importance for the complaints. 30% of the data that is the 15 persons have
agreed with ATM facility has given more importance. And the 64% of the data that is 32 persons
have agreed that the loan facility has given more importance.
4
• The study reveals that the data shows that 98% of the data that is 49 members have agreed that
their bank has Core Banking facility. Only 2% of the data that is only 1 person have not agreed
• The study reveals that the data shows that 86% of the data that is 43 persons have agreed that
bank charge unnecessarily for not maintaining minimum balance in the account. And 14% of the
data that is 7 people have not agreed for this.
• The study reveals that the data shows that 100% of the data that is 50 people have agreed that
their bank offers competitive interest rate.
• According to the survey the data collected and represented in the above graph about 22% of the
data that is 11 persons have feeling that bank needs improvement in customer services. 16% of the
data that is 8 persons have feeling that bank needs improvement in service charges. 32% of the
data that is 16 persons had conveyed that bank needs improvement in lending loans. And the 30%
of the data that is 15 persons have conveyed that bank need improvement in Services.
• According to the survey the data collected and represented in the above graph about 12% that is 6
persons chosen that bank is provides very good service quality. 30% of the data that is 15 persons
chosen that bank provides good service quality. 46% of the collected data that 23 persons chosen
that bank provides average service quality. And only 12% that is only 6 persons has chosen that
bank provides poor service quality.
collected data that is 44 persons has chosen that the bank offers competitive interest rate. And
about 12% of the collected data that is 6 persons has refused
collected that is 33 persons are using the services of the other banks too. And rest 34% that is 17
persons are not using any alternative services from any other bank.
collected data that is 35 persons has opinion to recommend this bank to their to friends,
family...etc. But remaining 30% that is 15 persons just refused.
• According to the survey the data collected and represented in the above graph about that 36% of
the collected data that is 18 persons chosen services. 30% of the data that is 15 persons has chosen
loans. 30% of the data that is 15 persons has chosen deposits. And about 4% of the data that is 2
persons has chosen complaints.
survey that is 9 persons has rated the bank performance as Very good. 30% of the survey that is
15 persons has rated the bank performance as Good. 42% of the survey that is 21 persons has
rated the bank performance as Average. And only 10% of the survey that is only 5 persons has
rated poor.
5
survey has a very good opinion on the bank. 36% of the survey that is 18 persons has good
opinion on the bank. 34% of the survey that is 17 persons has the average opinion on this bank.
And only 10% that is 5 persons of the survey has the poor opinion on this bank
RECOMMENDATIONS.
• As per the survey most of customers are not satisfied with the service charges of the bank. In their
perspective the charges are high. Minimal of the service charges may lead to increase in customers.
• Charging for not maintaining minimum balance is noticed a lot. Where a small changes should be
made in this case
• Need to be improved about the services. Where every should get a opportunity to take loan. It may
result bank in more profitable
• Most of them are thinking that the interest rate of bank on loans are high. Even a slight changes
should be made
• Availability of more ATM’s and CDM’ in the present rural areas. It will more convenient for the
customers on bank holidays
• Teaching about the mobile banking in the rural areas.This will result in reducing the burden for
bank
• Providing more scope for agricultural loans. As in present scenario there are lot of agricultural lands
in rural areas.
• The bank should conduct the social programs to educate the farmers and bring the awareness among
them
• The bank should assign more rural development projects and loans
• Advertising may lead to increase the scope of the bank to attract more customers
• Modulation of the server play a vital role in the banking sector.
6
LIMITATIONS OF THE STUDY.
Every research has got certain limitations and the proposed research would also not be an exception to this
fact. One of the major limitations is that the data collected under the research is not based upon primary
sources rather secondary sources of data. Even though data has been collected from reliable secondary
sources such as authenticated websites, journals, publications etc, still it is likely to have some error or bias.
Another limitation of the study is that only a few initiatives taken by the bank could be analysed in this
study due to various constraints. Many other indicators of the progress of financial inclusion such as
expansion of biometric AIMs, credit to MoMEs, insurance policies and few others were left out of the
present study
➢ Some information was not revealed by the Canara bank as it was kept confidential.
➢ Time constraint.
➢ The generalisations and conclusion are drawn on the data collected through questionnaire.
➢ Difficulty in data collection.
➢ Information is collected based on secondary data contained in the published annual reports of
CANARA Bank for the study period.
7
CHAPTER 2: INDUSTRY PROFILE
BACKGROUND
In the present scenario service sector plays an important role in the country. Among service sector banking
industry is one. Banking is one of the classical economic functions and plays a vital role in economic
development.
India has a well developed banking system. Most of the banks in India were founded by Indian
entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders,
agriculturists and budding Indian industries. Indian banks have played a significant role in the development
of Indian economy by inculcating the habit of saving in Indians and by lending finance to Indian Industry.
Indian Banks can be broadly classified in to Nationalised Banks, Private Banks and Foreign Banks.
Currently, India has 88 scheduled commercial banks 28 public sector banks (that is with the Government
of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed
and traded on stock exchanges) and 31 foreign banks.
The commercial banking structure in India consists of scheduled commercial banks and unscheduled
Commercial Banks and unscheduled Banks. Schedule Commercial Banks Constituted those banks. Which
have been included in the second schedule of Reserve Bank of India (RBI) Act 1934 RBI includes only
those banks in the schedule which satisfy the criteria laid down vide section 42(6)(a) of the Act.
The government's policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14
major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters
for getting a draft or for withdrawing his own money.
Today he has a choice. Gone are days when the most efficient banks transferred money from one branch
to other in two days. Now money transaction to any corner of the country within a few minutes is possible
by the advent
8
The milestones of Indian banking industry are:
The first bank in India, though conservative was established in 1786. From 1786 till today the journey of
Indian Banking system can be segregated into three distinct phases. They are as mentioned bellow.
➢ Early phase from 1786 to 1969 of Indian Banks

➢ Nationalisation of Indian Banks and up to 1991 prior to Indian Banking sector reforms.
➢ New phase of Indian Banking system with advent of Indian Financial and Banking sector reforms
after 1991.
PHASE 1:- Early phase from 1786 to 1969 of Indian Banks
The General Bank of India was set up in the year 1786. Next was come Bank of Hindustan and Bengal
Bank. The East India Company established Bank of Bengal (1809). Bank of Bombay (1840) and Bank of
Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated
in 1920 and Imperial Bank of India was established which started as private share holders banks mostly
Europeans Shareholders.
In 1865 Allahabad Bank was established and first time exclusively Indians,Punjab national Bank Ltd, was
set up in 1894 with head quarters at Lahore. Between 1906 and 1913, Bank of India central, Bank of India,
Bank of Borada, Canara Bank, Indian Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and bank also experienced periodic failures between 1913
and 1948. There were approximately 1100 Banks, mostly small to streamline the functioning and activities
of commercial Banks. The Government of India came up with the banking companies Act, 1949 which
was later changed to Banking Regulation Act 2949 as per amending Act of 1965 (Act No.23 of 1965).
9
PHASE 2:- Nationalisation of Indian Banks and up to 1991 prior to Indian Banking sector reforms.
Government took major steps in this Indian Banking sector Reform after independence. In 1955, it
nationalised Imperial Bank of India with extensive Banking facilities on a large scale especially in rural
and semi urban areas. It formedState Bank of India to act as the principal agent of RBI and to handle
Banking transactions of the Union and state Governments all over the country.
Seven Banks forming subsidiary of state Bank of India was nationalised in 1960 on 19' July, 1969, major
process of nationalisation was carried out. It was the effort of the then Prime Minister of India. Mrs. Indira
Gandhi 14 major commercial Banks in the country was nationalised. Second Phase of nationalisation Indian
banking sector reform was carried out in 1990 with seven more Banks. This step bought 80% of the Banking
segment in India under Government ownership.
The following are the steps taken by the Government of India to regulate Banking Institutions in the
country.
➢ 1944: Enactment of Banking Regulation Act.

➢ 1955: Nationalisation of State Bank of India
➢ 1959: Nationalisation of SBI subsidiaries
➢ 1961: Insurance cover extended to deposits.
➢ 1969: Nationalisation of 14 major Bank.
➢ 1971: Creation of credit guarantee corporation.
➢ 1975: Creation of regional rural Banks
➢ 1980: Nationalisation of seven Banks with deposits over 200 crore.
After the nationalisation of Banks, the branches of the public sector bank India rose to approximately 800%
in deposits and advances took a huge jump by 11.000%.
Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence
about the sustainability of these institutions.
10
PHASE 3:- New phase of Indian Banking system with advent of Indian Financial and Banking
sector reforms after 1991.
This phase has introduced many more product and facilities in the Banking sector in its reforms measure.
In 1991, under the chairmanship of M. Narasimhann a committee was set up by his name which worked
for the liberalisation of banking practices.
The country is flooded with foreign Banks and their ATM stations. Efforts are being put to give satisfactory
service customers. Phone Banking and Net Banking is introduced. The entire system became more
convenient and swift. Time is given more importance than money.
The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered
by any external macroeconomics shock as other East Asian countries suffered. This is all due to a flexible
exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and
banks and their customer have limited foreign exchange exposure
Core Banking System (CBS):
Every Bank is targeting in reduction of its transaction costs. All branches of the Banks are switching for
live transaction mode. This system integration of Core Banking was implemented and supported by
software companies like Infosys, TCS, WIPRO people soft etc. Until now CBS is adopted by most of the
Banks like Canara Bank, SBI, HDFC, City Bank, UTI Bank etc.
11
CHAPTER 3: COMPANY PROFILE
BACKGROUND OF THE CANARA BANK LAKKUNDI.
This bank was first established on 26 November 1974 on upstairs of the panchayat office building lakkundi-
582115, as syndicate bank and later in the year 2021 the syndicate was merged into one of the nationalised
bank that is Canara bank. And now it is Canara and syndicate bank. And this bank lies under the region of
Hubli division.
As of now it has been 47 years till now from the day that bank has started. As now the Canara bank is
second most turnovers and profitable bank in the India.
As of today this bank has served many and satisfied many people by their performance and lent many loans
and helped people with the perfect and favourable outcomes.
In basic terms bank is an financial institution where it acts a connecting bridge between the borrower and
lender. It accepts money in the form of deposits and lends that money to the person who is in need of money
at reasonable rate of interest.As the depositor is the creditor for the bank and loaner is the debtor of the
bank.
12
VISION.
To emerge as a 'Preferred Bank' by pursuing global benchmarks in profitability, operational efficiency,

asset quality, risk management and expanding the global reach.
MISSION.
To provide quality banking services with good customer care, create value for all stakeholders and continue
as a responsive corporate social citizen
SWOT ANALYSIS.
Definition: SWOT analysis is a strategic planning and strategic management technique used to
help a organisation to identify Strengths, Weaknesses, Opportunities, and Threats. Related to
business competition or project planning. It is sometimes called situational assessment or
situational analysis.
1.STRENGTHS OF THE CANARA BANK
• Schemes are by its very Nature Inventive – The bank’s schemes are extremely inventive. It offers
low-interest loans to people living in rural areas, thereby contributing to the improvement of rural
living standards by assisting farmers. It cooperated with UNEP to establish a solar lending
program.
• The Method of Banking – Canara Bank, in comparison to other public banks in India, articulates
best practices and provides a positive banking experience for consumers, resulting in a stronger
brand image in the minds of customers.
• Employment Generation – Banks employ around 40000 individuals in India, resulting in a large
number of people being employed.
2.WEAKNESS OF THE CANARA BANK
• Poor marketing – As a nationalised bank in India, the marketing focus is relatively low, resulting
in poor market visibility despite providing excellent banking services and experiences to
consumers. The bank does not have a marketing department that concentrates on enhancing the
bank’s market recognition.
13
• Client Base Is Weak – The bank does not have a large number of high-income customers. As a
result, low-income groups generate money, which does not enhance the bank’s bottom line, and
hence growth is gradual.
3.OPPORTUNITIES FOR THE CANARA BANK
• Rural Banking – The bank can go deeper into rural finance because the majority of Indians live in
rural regions, and by meeting their banking needs, the bank can increase its revenue.
• Social Banking – In the age of social media, banks are using social channels to respond to the
client’s requirements, posing a new challenge and saving time from having to visit physical banks.
4. THREATS TO CANARA BANK
• Private Sector Banks are Increasing Its Competition – Private sector banks are developing
novel investment packages and thereby gaining market share among retail consumers.
• Economic Crisis – As a result of the economic crisis, clients are not saving money in banks,
reducing bank liquidity and making it difficult to operate efficiently.
• Changing Policies – Banking policies are governed by Reserve Bank of India (RBI) laws and
regulations, therefore any changes made by the RBI have a direct impact on the bank’s
operations.
14
ACHIEVEMENTS AND RECOGNITIONS
1. Awarded as the best branch in 1981.
2. Got recognised as THE BANKING CODES AND STANDARDS BOARD OF INDIA.
15
CHAPTER 4:THEORETICAL
FRAME WORK.
INTRODUCTION.
As we all know the difficulties in rural areas the main issue faced by rural areas are financial insufficiency
(financial crisis). Where lot people don’t have financial support to continue farming or to start new way of
living life.
It is the most important thing that we all should get to know about the rural areas and as responsible citizens
we all should have an clear idea about the problems which are causing in the rural areas.
As we all know that there are lot of problems in rural areas such as financial difficulties in agricultural,
farming, unemployment, underemployment, lack of infrastructure, taking unauthorised loans(which loans
are lent on high interest rate)…etc
To suppress this kind of activities some of the major steps are taken by the Banking sector sector in
rural areas they are:
➢ KISSAN CREDIT CARD

➢ CANARA GRAMODAYA SCHEME
➢ AGRICULTURAL LOANS
➢ DAIRY LOANS
➢ SELF HELP GROUPS LOANS(SHGL)
➢ PERSONAL LOANS
➢ OFFERS GOLD LOANS
➢ HOME LOANS
➢ VEHICLE LOANS
➢ FIXED DEPOSITS
➢ EDUCATION LOAN
➢ FARMER REGISTRATION AND UNFIED BENEFICIARY INFORMATION SYSTEM
(FRUITS)
➢ PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA(PMJBY)
➢ PRADHAN MANTRI JAN DHAN YOJANA(PMJDY)
➢ PRADHAN MANTRI SURAKSHA BIMA YOJANA(PMSBY)
➢ ATAL PENSION YOJANA(APY)
➢ PRADHAN MANTRI MUDRA YOJANA
➢ PRADHAN MANRTI VAYA VANDANA YOJANA
16
KISSAN CREDIT CARD(KCC): The Kisaan Credit Card (KCC) scheme is a credit scheme introduced
in August 1998 by Indian public sector banks. This model scheme was prepared by the National Bank for
Agriculture and Rural Development (NABARD) on the recommendations of the R. V. Gupta Committee
to provide advances for agricultural needs.
Its objective is to meet the comprehensive credit requirements of the agriculture sector and by 2019 for
fisheries and animal husbandry by giving financial support to farmers. Participating institutions include all
commercial banks, Regional Rural Banks, and state co-operative banks. The scheme entails short-term
credit for crops and term loans. KCC credit holders are also covered under personal accident insurance up
to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risks. The premium is borne by
both the bank and the borrower in a 2:1 ratio. The validity period is five years, with an option to extend it
up to three more years. Kisaan Credit Card (KCC) credit to the farmers is of two types, viz., 1. Cash Credit
(for working capital) and 2. Term Credit (for capital expenditure such as the purchase of cattle, pump sets,
land development, plantation, drip irrigations, etc.
CANARA GRAMODAYA SCHEME: On 19th November, 2013, the Bank's Founder's Day, a new
Scheme called *Canara Gramodaya' was launched for holistic development of 63 villages and 3 slums
adopted by the Bank for bringing in socio-economic and cultural changes through credit and non-credit
support. It has successfully been implemented by the bank since then.
AGRICULTURAL LOANS: Crop loans are also known as Retail Agri Loans is a type of loan which
allows a farmer to meet his short-term expenses arising due to cultivation of crops, maintenance of farm
equipment, and other post farm activities. The farmer gets a credit card called the Kisan Credit Card on
availing this type of loan which they can use to withdraw money to make necessary purchases to meet their
farming needs.
Agricultural loans are availed by a farmer to fund seasonal agricultural operations or related activities
like animal farming, pisci-culture or purchase of land or agricultural tools. This type of loan also
helps buying inputs such as fertilizers, seeds, insecticides etc.
HOME LOANS: Canara bank offers the home loans. Where the rural face a major lack of infrastructure
to develop the standard of living the bank is offering the home loans. Where a person is offered to take loan
to build a home or to buy a home
A home loan is a secured loan that is obtained to purchase a property by offering it as collateral. Home
loans offer high-value funding at economical interest rates and for long tenors. They are repaid through
EMIs. After repayment, the property’s title is transferred back to the borrower.
17
DAIRY LOANS: Individuals who wish to start and operate their own farms or make improvements to
their existing farms can now make the most of dairy farm business loans. The reasons for taking out a loan
like this can be to establish small dairy units that have two to four mulch cattle, to collect, process, and
distribute milk, to establish a new medium or large dairy unit, to manufacture milk products, to construct
cattle shad, or to buy crossbreed or improved much cattle.
For your dairy farm business, you will most likely incur expenses related to purchase of raw materials,
dairy production processes, dairy product processing, dairy product storage, packaging, warehousing, etc.
You would also incur costs associated with taking care of animal species that help in the production of
dairy products.
SELF-HELP GROUP LOANS: It is also know as MICRO CREDIT A self-help group (commonly
abbreviated SHG) is a financial intermediary committee usually composed of 12 to 25 local women
between the ages of 18 and 50. Most self-help groups are in India, though they can be found in other
countries, especially in South Asia and Southeast Asia. A SHG is generally a group of people who work
on daily wages who form a loose grouping or union. Money is collected from those who are able to donate
and given to members in need.
Members may also make small regular savings contributions over a few months until there is enough money
in the group to begin lending. Funds may then be lent back to the members or to others in the village for
any purpose. In India, many SHGs are linked with banks for the delivery of micro-credit.
PERSONAL LOANS: personal loan, as the name suggests, is a loan you can take for any financial need.
They are processed faster than other loans and also require fewer documents. The application process is
simple, and you will ideally get the money within 2 to 5 days.
The recipient and the lender must agree on the terms of the loan before any money changes hands. In some
cases, the lender requires the borrower to offer an asset up for collateral, which will be outlined in the loan
document.
Personal Loan is an unsecured credit provided by financial institutions based on criteria like employment
history, repayment capacity, income level, profession and credit history. Personal Loan, which is also
known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs
VEHICLE LOANS: In rural areas major factor is farming. As the farmer is offered with vehicle loan
where he can buy a useful vehicle such as tractor, harvesting machine…etc to upgrade or to adopt the latest
technology and to increase the sustainability of the farming.
18
OFFERS GOLD LOANS: Gold loan (also called loan against gold) is a secured loan taken by the
borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral.
The loan amount provided is a certain percentage of the gold, typically up to 80%, based on the current
market value and quality of gold.
Gold loans, in general, serve as a source of support when you need capital urgently. You should not only
understand such products in order to tackle future necessities but also understand the upcoming new
variants that are safer and effectively reduce the overall interest burden on the loan.
As the interest rate on gold loans offered by Canara bank are too low than any other bank.
FIXED DEPOSITS: This is the basic feature given by bank. A fixed deposit, also known as an FD, is an
investment instrument offered by banks, as well as non-banking financial companies (NBFC) to their
customers to help them save money. With an FD account, you can invest a sizeable amount of money at a
predetermined rate of interest for a fixed period. At the end of the tenure, you receive the lump sum, along
with an interest, which is a good money-saving plan. Banks offers different rates of interest for a fixed
deposit account.
You can choose a fixed deposit for a period ranging from minimum 7-14 days to maximum 10 years. This
is why an FD is sometimes called a term deposit. When you open a fixed deposit account at a specific
interest rate, it is guaranteed, for the rate of interest remains the same, irrespective of any changes, which
happen due to market fluctuations.
EDUCATION LOAN: It helps children in rural areas to improve their career and build a bright future.
Education loans are basically a form of monetary assistance availed by students to meet the expenses
associated with their studies. Education loans can be taken by means of funding, scholarships, financing
and rewards, and are granted in cash, which has to be repaid to the lender along with a rate of interest.
Students who wish to avail education loans are advised to borrow based on their needs as the repayment
periods for these loans can vary to a great extent depending upon the lender and the amount borrowed by
the student.
Most of the student loans available to individuals in India are granted at a relatively low rate of interest,
and interest payments need not be made immediately. Students are usually granted a period of time before
from the time they take the loan to the time they start making repayments.
Education loans are unsecured loans that can be used to cover expenses related to education, such as tuition
fees, books, living expenses and other such expenses as transportation costs, etc. If you wish to avail an
education loan but are unemployed or still studying, a co-signer may be required to avail an education loan,
like an eligible adult such as a friend, parent or relative. The repayment of the loan can be done once the
student has completed his/her education. Given the flexible terms and conditions associated with the
repayment of an education loan, availing one is fairly simple and straightforward.
19
FARMER REGISTRATION AND UNFIED BENEFICIARY INFORMATION SYSTEM
(FRUITS): Karnataka state implements several schemes for the benefit of farmers. Farmers undertake
different agriculture and agriculture related activities like growing Agriculture crops, Horticulture crops,
Sericulture, Dairy, Poultry, Fishery etc. Each of this activity requires specialised knowledge and
experience. Therefore, the state has established specialised and specific department to assist farmers in
carrying out farming activities effectively and efficiently. While establishment of exclusive departments
brings focused approach for development of each of these activities, farmers need to approach different
departments for availing any type of assistance and benefits. It is common practice that all the departments
seek documents from the farmers for providing benefits under any scheme. Farmers end up submitting
same set of documents to different departments every year. Sometimes they will be required to submit one
set of documents for every scheme in same department.
A well organized and scrutinized farmer database will avoid farmers from running pillar to post for availing
benefits. Besides it would helps the departments in overcoming the aforesaid issues. DPAR e Governance
department in association with NIC has developed a software application called Farmer Registration
&Unified Beneficiary Information System – FRUITS.
PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA(PMJBY): The PMJJBY is available to

people in the age group of 18 to 50 years having a bank account who give their consent to join / enable
auto-debit. Aadhar would be the primary KYC for the bank account. The life cover of Rs. 2 lakhs shall be
for the one year period stretching from 1st June to 31st May and will be renewable. Risk coverage under
this scheme is for Rs. 2 Lakh in case of death of the insured, due to any reason. The premium is Rs. 330
per annum which is to be auto-debited in one installment f rom the subscriber’s bank account as per the
option given by him on or before 31st May of each annual coverage period under the scheme. The scheme
is being offered by Life Insurance Corporation and all other life insurers who are willing to offer the product
on similar terms with necessary approvals and tie up with banks for this purpose.
PRADHAN MANTRI JAN DHAN YOJANA(PMJDY): Hon’ble Prime Minister announced Pradhan
Mantri Jan Dhan Yojana as the National Mission on Financial Inclusion in his Independence Day address
on 15th August 2014, to ensure comprehensive financial inclusion of all the households in the country by
providing universal access to banking facilities. Under this, a person not having a savings account can open
an account without the requirement of any minimum balance and, in case they self-certify that they do not
have any of the officially valid documents required for opening a savings account, they may open a small
account.
Thus, PMJDY offers unbanked persons easy access to banking services and awareness about financial
products through financial literacy programmes. In addition, they receive a RuPay debit card, with inbuilt
accident insurance cover of Rs. 2 lakh, and access to overdraft facility upon satisfactory operation of
account or credit history of six months. Further, through Prime Minister’s Social Security Schemes,
launched by the Hon’ble Prime Minister on 9th May 2015, all eligible account holders can access through
their bank accounts personal accident insurance cover under Pradhan Mantri Suraksha Bima Yojana, life
insurance cover under Pradhan Mantri Jeevan Jyoti Bima Yojana, and guaranteed minimum pension to
subscribers under Atal Pension Yojana.
20
PRADHAN MANTRI SURAKSHA BIMA YOJANA(PMSBY): The Scheme is available to people in
the age group 18 to 70 years with a bank account who give their consent to join / enable auto-debit on or
before 31st May for the coverage period 1st June to 31st May on an annual renewal basis. Aadhar would
be the primary KYC for the bank account. The risk coverage under the scheme is Rs. 2 lakh for accidental
death and full disability and Rs. 1 lakh for partial disability. The premium of Rs.12 per annum is to be
deducted from the account holder’s bank account through ‘auto-debit’ facility in one installment. The
scheme is being offered by Public Sector General Insurance Companies or any other General Insurance
Company who are willing to offer the product on similar terms with necessary approvals and tie up with
banks for this purpose. As on 30.04.2022, cumulative enrollment is over 28.37 crore under PMSBY.
ATAL PENSION YOJANA(APY): APY was launched on 9th May, 2015 by the Prime Minister. APY is
open to all saving bank/post office saving bank account holders in the age group of 18 to 40 years and the
contributions differ, based on pension amount chosen. Subscribers would receive the guaranteed minimum
monthly pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000 at the age of 60 years.
Under APY, the monthly pension would be available to the subscriber, and after him to his spouse and after
their death, the pension corpus, as accumulated at age 60 of the subscriber, would be returned to the
nominee of the subscriber. The minimum pension would be guaranteed by the Government, i.e., if the
accumulated corpus based on contributions earns a lower than estimated return on investment and is
inadequate to provide the minimum guaranteed pension, the Central Government would fund such
inadequacy. Alternatively, if the returns on investment are higher, the subscribers would get enhanced
pensionary benefits.
In the event of pre-mature death of the subscriber, Government has decided to give an option to the spouse
of the subscriber to continue contributing to APY account of the subscriber, for the remaining vesting
period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber
shall be entitled to receive the same pension amount as that of the subscriber until the death of the spouse.
After the death of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to
receive the pension wealth, as accumulated till age 60 of the subscriber. As on 31st July, 2021, a total of
321.02 lakh subscribers have been enrolled under APY.
PRADHAN MANTRI MUDRA YOJANA: The scheme was launched on 8th April 2015. Under the
scheme a loan of upto Rs. 50,000 is given under sub-scheme ‘Shishu’; between Rs. 50,000 to 5.0 Lakhs
under sub-scheme ‘Kishore’; and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme ‘Tarun’. Loans taken
do not require collaterals. These measures are aimed at increasing the confidence of young, educated or
skilled workers who would now be able to aspire to become first generation entrepreneurs; existing small
businesses, too, will be able to expand their activates. As on 20.08.2021, Rs. 16,22,203 crores sanctioned
in 30.7 crores accounts.
21
PRADHAN MANRTI VAYA VANDANA YOJANA: The ‘Pradhan Mantri Vaya Vandana Yojana
(PMVVY) has been launched by the Government to protect elderly persons aged 60 years and above against
a future fall in their interest income due to uncertain market conditions, as also to provide social security
during old age. The scheme is implemented through the Life Insurance Corporation of India (LIC) and
open for subscription upto 31st March, 2023.
PMVVY offers an assured rate of return 7.40% per annum for the financial year 2020-21 for policy duration
of 10 years. In subsequent years, while the scheme is in operation, there will be annual reset of assured rate
of return with effect from April 1st of the financial year in line with applicable rate of return of Senior
Citizens Saving Scheme(SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of
this threshold at any point.
Mode of pension payment under the Yojna is on a monthly, quarterly, half-yearly or annual basis depending
on the option exercised by the subscriber. Minimum purchase price under the scheme is Rs. 1,62,162/- for
a minimum pension of Rs. 1000/- per month and the maximum purchase price is Rs. 15 lakh per senior
citizen for getting a pension amount of Rs. 9,250/- per month.
22
OVERVIEW OF FINANCIAL INCLUSION.
According to the Planning Commission (2009), financial inclusion refers to universal access to a wide
range of financial services at a reasonable cost. These include not only banking products but also other
financial services such as insurance and equity products.
GOI (2008) defines Financial inclusion as the process of ensuring access to financial services and timely
and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at
an affordable cost.
According to Chakraborty (2011), financial inclusion is the process of ensuring access to appropriate
financial products and services needed by all sections of society including vulnerable groups such as weaker
sections and low income groups at an affordable cost in a fair and transparent manner by mainstream
institutional players.
In simpler sense, Financial Inclusion ensures that the range of appropriate financial services is available to
every individual and that the individual understands and accesses those services.
Financial Inclusion is certainly not a new concept. With the nationalisation of 14 commercial banks in
1969, branches were opened in large number across the nation, even in areas that were until then unreached
by banks. However, in the Indian context, the term 'financial inclusion' was used for the first time in April
2005 in the Annual Policy Statement presented by Y. Venugopal Reddy, Governor, Reserve Bank of India.
Later on, this concept gained ground and came to be widely used in India and abroad. While recognizing
the concerns in regard to the banking practices that tend to exclude rather than attract vast sections of
population, banks were urged to review their existing practices to align them with the objective of financial
inclusion.
The Reserve Bank of India (RBI) has, over the years, undertaken numerous initiatives such as introduction
of priority sector lending requirements for banks, establishment of regional rural banks (RBs), and self-
help group- bank linkage programs to augment the availability of financial services to the poor and
marginalised segments of the society. In the last few years, RBI has adopted a bank-led model for achieving
financial inclusion and removed all regulatory bottle necks in achieving greater financial inclusion in the
country. Further, for achieving the targeted goals, RBI has created conducive regulatory environment and
provided institutional support for banks in accelerating their financial inclusion efforts.
23
FINANCIAL INCLUSION INITIATIVES.
Advised all banks to open Basic Saving Bank Deposit (BSBD) accounts with minimum common facilities
such as no minimum balance, deposit and withdrawal of cash at bank branch and ATMs, receipt/credit of
money through electronic payment channels, facility of providing ATM card.
Relaxed and simplified KYC norms to facilitate easy opening of bank accounts, especially for small
accounts with balances not exceeding Rs. 50,000 and aggregate credits in the accounts not exceeding Rs.
one lakh a year. Further, banks are advised not to insist on introduction for opening bank accounts of
customers. In addition, banks are allowed to use Aadhar Card as a proof of both identity and address
Simplified Branch Authorisation Policy, to address the issue of uneven spread bank branches, domestic
SCBs are permitted to freely open branches in Tier 2 to Tier 6 centres with population of less than 1 lakh
under general permission, subject to reporting. In NorthEastern Sates and Sikkim domestic SCBs can open
branches without having any permission from RBI. With the objective of further liberalizing, general
permission to domestic scheduled commercial banks (other than RBs) for opening branches in Tier 1
centres, subject to certain conditions.
Compulsory Requirement of Opening Branches in Un-banked Villages, banks are directed to allocate
at least 25% of the total number of branches to be opened during the year in un-banked (Tier 5 and tier 6)
rural centres
Opening of intermediate brick and mortar structure for effective cash management, documentation,
redressal of customer grievances and close supervision of BC operations, banks have been advised to open
intermediate structures between the present base branch and BC locations. This branch could be in the form
of a low cost simple brick and mortar structure consisting of minimum infrastructure such core banking
solution terminal linked to a pass book printer and a safe for cash retention for operating larger customer
transactions.
Public and private sector banks had been advised to submit board approved three year Financial Inclusion
Plan (FIP) starting from April 2010. These policies aim at keeping self-set targets in respect of rural brick
and mortar branches opened, BC employed, coverage of un-banked villages with population above 2000
and as well as below 2000, BSBD accounts opened, Kissan Credit Cards (KCCs), General Credit Cards
(GCCs) issued and others. RBI has been monitoring these plans on a monthly basis.
Banks have been advised that their FIPs should be disaggregated and percolated down up to the branch
level. This would ensure the involvement of all stakeholders in the financial inclusion efforts.
24
In June 2012, revised guidelines on Financial Literacy Centres (FLCs). Accordingly, it was advised that
FLCs and all the rural branches of scheduled commercial banks should scale up financial literacy efforts
through conduct of outdoor Financial Literacy Camps at least once a month, to facilitate financial inclusion
through provision of two essentials i.e. 'Financial Literacy' and easy 'Financial Access'. Accordingly, 718
FLCs have been set up as at end of March 2013. A total of 2.2 million people have been educated through
awareness camps / choupals, seminars and lectures during April 2012 to March 2013.
An inclusive financial system is one of the top most priorities of India as it is believed to be instrumental
in the equitable growth of the nation. Although India has adopted several measures to advance financial
inclusion, an estimated 40 percent of the population is still deprived of access even to basic financial
services. One of the critical factors in the successful implementation of a program is effectively tracking
its progress, so that cause corrections can be undertaken, if necessary. "If you can't measure it, you can't
manage it."management consultant Peter Ducker once said.
25
RESEARCH METHODOLOGY.
PROJECT TITLE.
“Analysis on Effectiveness of Banking Services provided by Canara Bank in Rural
Areas”.
NEED FOR THE STUDY:
It is very necessary to understand organisation study, to know about management of the Bank.To know
about services offered, departments, coordination among the departments of the bank. The
very need of this study is to know overall functioning of the organisation to get practical knowledge.
This study is also necessary to know the strength, problems and opportunities for the bank that
helps to give necessary recommendations for future improvement. And to know the measures taken by
the bank to improve the life’s of rural areas.
OBJECTIVES OF THE STUDY.

➢ To study about the establishment, and the Management of The Canara bank.
➢ To study about overall working conditions of the bank.
➢ To study about the concept of Rural areas financial development.
➢ To study about the Services offered by Canara bank.
➢ To know about the key Departments of the bank.
➢ To know about the nature of the bank.
➢ To highlight various initiatives taken by Canara Bank in the area of financial
inclusion.
➢ To assess the progress of the bank in its contribution to the policy of financial
inclusion.
26
SCOPE OF THE STUDY.
➢ It helps to know about the profile, performance and recent development

of services and the Banking sector
➢ It helps to understand work process of bank
➢ It gives the scope to understand services offered by the bank in rural areas such as home loans,
agricultural loans, gold loans..etc
➢ This study helps to understand factors influencing banking services
METHODOLOGY.
There are two sources of data collection they are;
1.PRIMARY DATA
2.SECONDARY DATA
1. Primary data:-Data collected specifically for a research project on first hand by the
investigator conducting the research.
Sources of primary data
➢ Personal interaction with the Branch manager and with the Employees.
➢ Observation
2.Secondary data
The data for present study has been collected mainly from secondary sources. such as Internet,
Magazines and Periodicals
Sources of secondary data
➢ https://canarabank.com
➢ Newspaper,Articles, and Journals.
➢ Internet.
27
SAMPLING PROCESS
1. Data source : primary data( from questionnaire )

Secondary data( Internet, magazines, and periodicals)
2. Research approach. : Survey method
3. Research instrument : Questionnaire
4. Sample plan. : Personal interview
5. Sample unit. : Random sample
6. Sample size. : 50 peoples.
LIMITATIONS OF THE STUDY.
Every research has got certain limitations and the proposed research would also not be an exception to this
fact. One of the major limitations is that the data collected under the research is based upon primary
sources rather secondary sources of data. Even though data has been collected from reliable secondary
sources such as authenticated websites, journals, publications etc, still it is likely to have some error or bias.
Another limitation of the study is that only a few initiatives taken by the bank could be analysed in this
study due to various constraints. Many other indicators of the progress of financial inclusion such as
expansion of biometric AIMs, credit to MoMEs, insurance policies and few others were left out of the
present study
➢ Some information was not revealed by the Canara bank as it was kept confidential.
➢ Time constraint.
➢ The generalisations and conclusion are drawn on the data collected through questionnaire.
➢ Difficulty in data collection.
➢ The analysis and interpretation are based on secondary data contained in the published annual
reports of CANARA Bank for the study period.
28
CHAPTER 5: DATA AND
INTERPRETATION
Definition.
Data interpretation refers to the process of using diverse analytical methods to review data and arrive at
relevant conclusions. The interpretation of data helps researchers to categorise, manipulate, and summarise
the information in order to answer critical questions.
Data Analysis, representation, and interpretation
1) Age group
No.of persons Total Percentage
18-24 years 13 26%
25-32 years 19 38%
33-40 years 12 24%
41 years and above 6 12%
Total 50 100%
29
40%
35%
30%
25%
20% Series 1
Series 2
15%
10%
5%
0%
18-24 years 25-32 years 33-40 years 41 and above
Interpretation:
• In this above graph it shows that the 26% of the Data that is13 persons were 18-24 years old. 38%
of the Data that is 19 persons are 25-32 years old. 24% of the Data that is 12 persons are 33-40
years old. And 12% of the Data that is 6 persons are 40 years and above.
30
2) Occupation
No.of persons Total percentage
Student 10 20%
Job holder 15 30%
Professional 7 14%
Business 18 36%
Total 50 100%
40%
35%
30%
25%
20%
Series 1
15%
10%
5%
0%
student job holder professional Business
Interpretation:
• In the above graph it shows that the 20% of the Data that is 10 persons are students. 30% of the
Data that is 15 persons are job holders. 14% of the Data that is 7 persons are professionals. And
36% of Data that is 18 persons are business commencing people.
31
3) Qualification
Student 14 28%
Pre university college 12 24%
Graduation 20 40%
Post Graduation 4 8%
Total 100%
45%
40%
35%
30%
25%
Series 1
20%
15%
10%
5%
0%
Student Pre university Gradution Post gradution
Interpretation:
• In the above graph the data represents that the 28% of the Data that is 14 persons are just studied
their school level. 24% of the Data that is 12 persons completed their Pre university college. 40%
of the data that is 20 persons completed graduation. And 8% of the data that is 4 persons have
completed their Post graduation.
32
4) Annual income
Below 1 lakh 23 46%
1-3 lakhs 18 36%
3-10 lakhs 8 16%
10 lakhs and above 1 2%
Total 50 100%
50%
45%
40%
35%
30%
25%
Series 1
20%
15%
10%
5%
0%
below 1 lakh 1-3 lakhs 3-10 lakhs above 10
Interpretation:
• In the above graph the data shows that the 46% of the data that is 23 persons have the annual income
below 1 lakh. 36% of the data that is 18 persons have the annual income of 1-3 lakhs. 16% of the
data that is 8 persons have annual income of 3-10 lakhs. And only 2% of the data that is only 1
person has the income of 10 lakhs and above.
33
5) Do you think that your bank caters all your banking needs?
Yes 27 54%
No 23 46%
Total
56%
54%
52%
50% Series 1
48%
46%
44%
42%
Yes No
Interpretation:
• In the above graph 54% of the data that is 27 people have agreed that bank caters all their needs.
And rest of the 46% that is 23 people have disagreed that bank caters their need.
34
6) For the past how many years you have account with this bank?
From 6 months 4 8%
6months to 1 year 5 10%
1-3 years 9 18%
3 years and above 32 64%
Total 50 100%
70%
60%
50%
40% Series 1
30%
20%
10%
0%
from 6 months 6 months to 1 year 1-3 years 3 years and above
Interpretation:
• In the above graph the data shows that 8% of the data that is 4 people have the account from past 6
months. 10% of the data that is 5 people have their accounts from past 1 year. 18% of the data that
is 9 people have the account from past 3 years. And the 64% of the data that is 32 people have the
account with this bank from past 3 years and above.
35
7) what kind of account do you maintain in this bank?
No.ofpersons Total percentage
Savings account 30 60%
Current account 4 8%
Loan account 8 16%
Student account 16%

8
Total 50 100%
70%
60%
50%
40%
Series 1
30%
20%
10%
0%
savings account current account loan account student account
Interpretation:
• In the above graph the data shows that 60% of the data that is 30 people maintain savings account
with this bank. 8% of the data that is 4 people maintain current account. 16% of the data that is 8
people have loan account. And 16% of the data that is 8 people have student account in this bank.
8) which of the following facilities are given more importance in your bank?
36
Complaints 3 6%
ATM 15 30%
Loan 32 64%
Total 50 100%
70%
60%
50%
40% Series 1
30%
20%
10%
0%
complaints ATM Loan
Interpretation:
• In the above graph the data shows that 6% of the data that is the 3 people have agreed that their
bank give more importance for the complaints. 30% of the data that is the 15 persons have agreed
with ATM facility has given more importance. And the 64% of the data that is 32 persons have
agreed that the loan facility has given more importance.
9) Does your bank have core banking facility for the customer?
37
Yes 49 98%
No 1 2%
Total 50 100%
120%
100%
80%
60%
Series 1
40%
20%
0%
YES NO
Interpretation:
• In the above graph the data shows that 98% of the data that is 49 members have agreed that their
bank has Core Banking facility. Only 2% of the data that is only 1 person have not agreed
10) Do they charge unnecessarily for not maintaining minimum balance in your account?
38
Yes 43 86%
No 7 14%
Total 50 100%
100%
90%
80%
70%
60%
50%
Series 1
40%
30%
20%
10%
0%
YES NO
Interpretation:
• In the above graph the data shows that 86% of the data that is 43 persons have agreed that bank
charge unnecessarily for not maintaining minimum balance in the account. And 14% of the data
that is 7 people have not agreed for this.
11) Does your bank offer competitive service charges?
39
Yes 50 100%
No 0 0
Total 50 100%
120%
100%
80%
Series 1
60%
40%
20%
0%
Yes No
Interpretation:
• In the above graph the data shows that 100% of the data that is 50 people have agreed that their
bank offers competitive intrest rate.
12) Where do you feel that the bank needs improvement?
40
Customer services 11 22%
Service charges 8 16%
Lending loans 16 32%
Services 15 30%
Total 50 100%
35%
30%
25%
20%
Series 1
15%
10%
5%
0%
Customer service Service charges Lending loans Services
Interpretation:
data that is 8 persons have feeling that bank needs improvement in service charges. 32% of the data
that is 16 persons had conveyed that bank needs improvement in lending loans. And the 30% of the
data that is 15 persons have conveyed that bank need improvement in Services.
13) What do you feel about the overall service quality of the your bank?
41
Very good 6 12%
Good 15 30%
Average 23 46%
Very poor 6 12%
Total 50 100%
50%
45%
40%
35%
30%
25%
Series 1
20%
15%
10%
5%
0%
Very good Good Average Poor
Interpretation:
14) Do you think that your bank offers competitive interest rate?
42
Yes 44 88%
No 6 12%
Total 50 100%
.
100%
90%
80%
70%
60%
50%
Series 1
40%
30%
20%
10%
0%
Yes No
Interpretation:
collected data that is 44 persons has chosen that the bank offers competitive interest rate. And about
12% of the collected data that is 6 persons has refeused
15) Do you use the service of alternative bank?
43
Yes 33 66%
No 17 34%
Total 50 100%
70%
60%
50%
40%
Series 1
30%
20%
10%
0%
Yes No
Interpretation:
16) Would you recommend this bank to your friends, relatives, and associates?
44
Yes 35 70%
No 15 30%
Total 50 100%
80%
70%
60%
50%
40%
Series 1
30%
20%
10%
0%
Yes No
Interpretation:
collected data that is 35 persons has opinion to recommend this bank to their to friends, family...etc.
But remaining 30% that is 15 persons just refused.
17) When do you think of your bank what comes first on your mind?
45
Services 18 36%
Loans 15 30%
Deposits 15 30%
Complaints 2 4%
Total 50 100%
40%
35%
30%
25%
20%
Series 1
15%
10%
5%
0%
Services Loans Deposits Complaints
Interpretation:
18)How will you rate the overall performance of your bank?
46
Very good .9 18%
Good 15 30%
Average 21 42%
Poor 5 10%
Total 50 100%
45%
40%
35%
30%
25%
Series 1
20%
15%
10%
5%
0%
Very good good Average Poor
Interpretation:
survey that is 9 persons has rated the bank performance as Very good. 30% of the survey that is 15
persons has rated the bank performance as Good. 42% of the survey that is 21 persons has rated the
bank performance as Average. And only 10% of the survey that is only 5 persons has rated poor.
19) Your overall opinion about your bank?
47
Very good 10 20%
Good 18 36%
Average 17 34%
Poor 5 10%
Total 50 100%
40%
35%
30%
25%
20%
Series 1
15%
10%
5%
0%
Very good Good Average Poor
Interpretation:
survey has a very good opinion on the bank. 36% of the survey that is 18 persons has good opinion
on the bank. 34% of the survey that is 17 persons has the average opinion on this bank. And only
10% that is 5 persons of the survey has the poor opinion on this bank
STATEMENT: ALL THE DATA IS COLLECTED AND BASED ON THE SURVEY

CONDUCTED.
48
CHAPTER 6: FINDINGS,
RECOMMENDATIONS, AND
CONCLUSION.
FINDINGS.
• The study reveals that 26% of the Data that is13 persons were 18-24 years old. 38% of the Data
that is 19 persons are 25-32 years old. 24% of the Data that is 12 persons are 33-40 years old. And
12% of the Data that is 6 persons are 40 years and above.
• The study reveals that the 20% of the Data that is 10 persons are students. 30% of the Data that is
15 persons are job holders. 14% of the Data that is 7 persons are professionals. And 36% of Data
that is 18 persons are business commencing people.
• The study reveals that the data represents that the 28% of the Data that is 14 persons are just
studied their school level. 24% of the Data that is 12 persons completed their Pre university
college. 40% of the data that is 20 persons completed graduation. And 8% of the data that is 4
persons have completed their Post graduation.
• The study reveals that the data shows that the 46% of the data that is 23 persons have the annual
income below 1 lakh. 36% of the data that is 18 persons have the annual income of 1-3 lakhs.
16% of the data that is 8 persons have annual income of 3-10 lakhs. And only 2% of the data that
is only 1 person has the income of 10 lakhs and above.
• The study reveals that the 54% of the data that is 27 people have agreed that bank caters all their
needs. And rest of the 46% that is 23 people have disagreed that bank caters their need.
• The study reveals that the data shows that 8% of the data that is 4 people have the account from
past 6 months. 10% of the data that is 5 people have their accounts from past 1 year. 18% of the
data that is 9 people have the account from past 3 years. And the 64% of the data that is 32 people
have the account with this bank from past 3 years and above.
49
• The study reveals that the data shows that 60% of the data that is 30 people maintain savings
account with this bank. 8% of the data that is 4 people maintain current account. 16% of the data
that is 8 people have loan account. And 16% of the data that is 8 people have student account in
this bank.
• The study reveals that the data shows that 6% of the data that is the 3 people have agreed that
their bank give more importance for the complaints. 30% of the data that is the 15 persons have
agreed with ATM facility has given more importance. And the 64% of the data that is 32 persons
have agreed that the loan facility has given more importance.
• The study reveals that the data shows that 98% of the data that is 49 members have agreed that
their bank has Core Banking facility. Only 2% of the data that is only 1 person have not agreed
• The study reveals that the data shows that 86% of the data that is 43 persons have agreed that
bank charge unnecessarily for not maintaining minimum balance in the account. And 14% of the
data that is 7 people have not agreed for this.
• The study reveals that the data shows that 100% of the data that is 50 people have agreed that
their bank offers competitive interest rate.
data that is 8 persons have feeling that bank needs improvement in service charges. 32% of the
data that is 16 persons had conveyed that bank needs improvement in lending loans. And the 30%
of the data that is 15 persons have conveyed that bank need improvement in Services.
collected data that is 44 persons has chosen that the bank offers competitive interest rate. And
about 12% of the collected data that is 6 persons has refused
collected data that is 35 persons has opinion to recommend this bank to their to friends,
family...etc. But remaining 30% that is 15 persons just refused.
50
survey that is 9 persons has rated the bank performance as Very good. 30% of the survey that is
15 persons has rated the bank performance as Good. 42% of the survey that is 21 persons has
rated the bank performance as Average. And only 10% of the survey that is only 5 persons has
rated poor.
survey has a very good opinion on the bank. 36% of the survey that is 18 persons has good
opinion on the bank. 34% of the survey that is 17 persons has the average opinion on this bank.
And only 10% that is 5 persons of the survey has the poor opinion on this bank
51
RECOMMENDATIONS.
• As per the survey most of customers are not satisfied with the service charges of the bank. In their
perspective the charges are high. Minimal of the service charges may lead to increase in customers.
• Charging for not maintaining minimum balance is noticed a lot. Where a small changes should be
made in this case
• Need to be improved about the services. Where every should get a opportunity to take loan. It
may result bank in more profitable
• Most of them are thinking that the interest rate of bank on loans are high. Even a slight changes
should be made
• Availability of more ATM’s and CDM’ in the present rural areas. It will more convenient for the
customers on bank holidays
• Teaching about the mobile banking in the rural areas.This will result in reducing the burden for
bank
• Providing more scope for agricultural loans. As in present scenario there are lot of agricultural
lands in rural areas.
.
• The bank should conduct the social programs to educate the farmers and bring the awareness
among them
• The bank should assign more rural development projects and loans
• Advertising may lead to increase the scope of the bank to attract more customers
• Modulation of the server play a vital role in the banking sector
52
OVERALL OUTCOMES OF THE PROJECT.
According to the survey the Canara bank has bought and took major steps to eliminate struggles in rural
areas. Where all this major steps helped a lot of peoples and this Canara bank in lakkundi helped a lot of
people by lending loans. And creating business between the creditor and debtor. Where this bank had
created a lot of business opportunities in this particular rural area.
As in my perspective Canara bank at lakkundi has given an outstanding performance.
It has lent loans up to 2.80 crores(approx) which includes Gold loans, vehicle loans, home loans,
personal loans...etc.
And it commenced a business of 73.90 crores(approx.) Including deposits and advance payments.
And it has total NPA( non performing assets) of approx 3.78 crores.
These are the best examples to show that the performance of Canara bank in lakkundi to say that this
bank is an outstanding bank.
As this is the performance of the Canara bank in this particular rural area(lakkundi- 582115). Where this
bank remains as a role model for upcoming branches.
53
CONCLUSION.
Banks play very important roles in the economic development of nations as they, to a large extent, wield
control over the supply of money in circulation and are the main stimuli of economic progress. Economic
development is a dynamic and continuous process which is highly dependent upon the mobilisation of
resources, investment, and the operational efficiency of the various segments of the economy. The
performance of bank institution and other financial institution need to be evaluated because It defined as
the reflection of the way in which the resources of a bank are used in a form which enables it to achieve its
objectives. As the banking sector is considered a vital segment of a modern economy, its efficiency is vital
importance. In order to ensure a healthy financial system and an efficient economy, banks and other
financial institution must be carefully evaluated and analysed. While banks and other financial institution
help business organisations by rendering a wide range of products and services, the products and services
are more or less identical from one bank to another, and there is little scope for differentiating between
them. Therefore, it is necessary to measure the banks' individual performance to determine their
contribution to business development. In Malaysia. the banking sector includes various private and
government banks and some private and government banks have their own branch networks throughout
the country. As a consequence or economic reforms and mobilisation. different financial institutions have
emerged in the market. This has not only created an increasingly dynamic and competitive banking
environment, which calls for enhanced evaluation and analysis, but overall, has encouraged greater
efficiency in banking services. Therefore, strong banking sector including other financial institution is vital
for growth, creating jobs, generating wealth, eradicating poverty, entrepreneurial activity and increasing
Gross Domestic Product (GDP) growth
BIBLIOGRAPHY
BOOKS
WEBSITES
➢ www.Canarabank.com/journals
➢ www.Wikipedia.com
➢ Prospects of Canara bank
54
QUESTIONNAIRE
I am Mr. Venkata sudarshan G studying in BBA VI semester in A.S.S’s S.L.A.P.M College of Business
Administration, Gadag.I am doing a project on “Analysis on Effectiveness of Banking Services provided
by Canara Bank in Rural Areas”. I request you to fill the questionnaire so that it will help me to complete
the project. The information provided by you will be kept confidential and will be used for academic
purpose only.
1) Name___________________
2) Age
A)18-24 years[ ] B)25-32years[ ] C)33-40years[ ] D)41years and above[ ]
3) Occupation
A)Student [ ] B)Job holder[ ] C)Professional[ ] D)Business[ ]
4) Qualification
A)Student[ ] B)Pre University college[ ] C)Graduation[ ] D)Post graduation[ ]
5) Annual Income
A)Below 1 lakh[ ] B)1-3lakhs[ ] C)3-10lakhs[ ] D)Above 10lakhs[ ]
6) Do you think that your bank caters all your banking needs?
A)Yes[ ] B)No[ ]
7) For the past how many years you have account with this bank?
A)From 6months[ ] B)6months-1year[ ] C)1-3years[ ] D)3years and above[ ]
8) What kind of account do you maintain in this bank?
A)Savings account[ ] B)Current account[ ] C)Loan account[ ] D)Student account[ ]
9) Which of the following facilities are given more importance in your bank?
A)Complaints[ ] B)ATM[ ] C)Loan[ ]
10) Does your bank has core banking facility for the customer?
A)Yes[ ] B)No[ ]
55
11) Do they charge unnecessarily for not maintaining minimum balance in your account?
A)Yes[ ] B)No[ ]
12) Does your bank offer competitive service charges
A)Yes[ ] B)No[ ]
13) Where do you feel that the bank needs improvement?
A)Customer service[ ] B)Service charges[ ] C)Lending loans[ ] D)Services[ ]
14) What do you feel about the overall service quality of the your bank?
A)Very good[ ] B)Good[ ] C)Average[ ] D)Very poor[ ]
15) Do you think that your bank offers competitive interest rate?
A)Yes[ ] B)No[ ]
16) Do you use the service of alternative bank?
A)Yes[ ] B)No[ ]
17) Would you recommend this bank to your friends, relatives, and associates?
A)Yes[ ] B)No[ ]
18) When do you think of your bank what comes first on your mind?
A)Services[ ] B)Loans[ ] C)Deposits[ ] D)Complaints[ ]
19) How will you rate the overall performance of your bank
A)Very good[ ] B)Good[ ] C)Average[ ] D)Poor[ ]
20) Your overall opinion about your bank?
A)Very good[ ] B)Good[ ] C)Average[ ] D)Poor[ ]
56

Canara Bank Study

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Canara Bank Study

Uploaded by

Copyright:

Available Formats

CHAPTER 1:EXECUTIVE SUMMARY

NEED FOR THE STUDY:

OBJECTIVES OF THE STUDY.

➢ It helps to know about the profile, performance and recent development

There are two sources of data collection they are;

Sources of primary data

Sources of secondary data

➢ Early phase from 1786 to 1969 of Indian Banks

PHASE 1:- Early phase from 1786 to 1969 of Indian Banks

➢ 1944: Enactment of Banking Regulation Act.

Core Banking System (CBS):

To emerge as a 'Preferred Bank' by pursuing global benchmarks in profitability, operational efficiency,

1.STRENGTHS OF THE CANARA BANK

2.WEAKNESS OF THE CANARA BANK

3.OPPORTUNITIES FOR THE CANARA BANK

4. THREATS TO CANARA BANK

1. Awarded as the best branch in 1981.

2. Got recognised as THE BANKING CODES AND STANDARDS BOARD OF INDIA.

➢ KISSAN CREDIT CARD

PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA(PMJBY): The PMJJBY is available to

NEED FOR THE STUDY:

OBJECTIVES OF THE STUDY.

➢ It helps to know about the profile, performance and recent development

There are two sources of data collection they are;

Sources of primary data

Sources of secondary data

1. Data source : primary data( from questionnaire )

LIMITATIONS OF THE STUDY.

Data Analysis, representation, and interpretation

No.of persons Total Percentage

18-24 years 13 26%

25-32 years 19 38%

33-40 years 12 24%

41 years and above 6 12%

No.of persons Total percentage

Job holder 15 30%

No.of persons Total percentage

Pre university college 12 24%

No.of persons Total percentage

Below 1 lakh 23 46%

1-3 lakhs 18 36%

3-10 lakhs 8 16%

10 lakhs and above 1 2%

No.of persons Total percentage

No.of persons Total percentage

6months to 1 year 5 10%

1-3 years 9 18%

3 years and above 32 64%

No.ofpersons Total percentage

Savings account 30 60%

Loan account 8 16%

Student account 16%

11) Does your bank offer competitive service charges?

12) Where do you feel that the bank needs improvement?

Customer services 11 22%

Service charges 8 16%

Lending loans 16 32%

Very good 6 12%

Very poor 6 12%

15) Do you use the service of alternative bank?

18)How will you rate the overall performance of your bank?

Very good .9 18%

19) Your overall opinion about your bank?