A STUDY OF RETAIL BANKING SERVICES

With reference to
THE NASHIK MERCHANTS CO-OPERATIVE BANK LTD, BHAGUR

Project Report

Submitted to
SAVITRIBAI PHULE PUNE UNIVERSITY
For partial fulfilment of degree
Bachelor of Commerce
Under ‘C’ Component
Banking and Finance

Submitted by
Kardile Rushikesh Sampat
TY B.COM
Division: G
Roll No.: 678

Guided By:
Dr. Mrs. Yogini Dixit

B.Y.K (SINNER) COLLEGE OF COMMERCE, NASHIK

2022 - 23

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 DECLARATION

I hereby declare that this project “A Study of Retail Banking Services with

reference to The Nashik Merchants Co-operative Bank Ltd, Bhagur” submitted by me

is based on actual work carried out by me as per the project norms. I have collected the

necessary data and information from the concerned relevant and genuine business

professional and users. I have validated all the data and carried out further analysis,

interpretation and other necessary processes needed to obtain results. I have cited the

necessary sources and references in the project.

Date: Signature of the Student

Place: Kardile Rushikesh Sampat

Class: - T.Y. B.Com

Roll No: - 678

Seat No –

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 ACKNOWLEDGEMENT

I have pleasure in successful completion of this work titled, “A Study Of Retail

Banking Services with reference to The Nashik Merchants Co-operative Bank Ltd,
Bhagur”. The special environment at B.Y.K. College of Commerce, Nashik that always
supports educational activities, facilitated my work on this project.

I acknowledge the support, and encouragement, extended for this study by

Principal Dr. V. N. Suryawanshi.

I greatly appreciate the motivation and understanding extended for the project work, by
Mr. Bharat P Kothwade and the staff of the surveyed business unit / Bank, who
responded promptly and enthusiastically to my requests for frank comments despite their
congested schedules. I am indebted to all of them, who did the best to bring
improvements through their suggestions.

I am very much thankful to Dr. Mrs. Yogini Dixit for her encouragement and guidance
for this project work. It would not have been possible for me to complete this work
without her suggestion on every part of this work.

I acknowledge the authors, whose works gave me insight and information related to this
subject.

I am thankful to Library staff and administrative staff of the BYK College who, directly,
or indirectly, have all been helpful in one way or another.

I thank my father and mother who encouraged me to extend my reach with their help and
support, I have been able to complete this work.

Date: Signature
Kardile Rushikesh Sampat
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 University Exam Seat No.

Date:

CERTIFICATE

This is to certify that Mr. Kardile Rushikesh Sampat studying in TY B.Com with subject

Banking and Finance in B.Y.K (Sinnar) College of Commerce, Nashik, has visited our

industry/organisation personally and collected the necessary information for completion of

the project report.

We wish him all the best for his future success.

Signature
Name:
Seal (rubber stamp) Designation:

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 INDEX

Sr. Name Of Page

No. Chapter No.
1. Introduction: 7-10
A] Selection Of Retail Banking Services Topic 8
B] Importance Of Retail Banking 9

C] Objectives Of Retail Banking 10

2. Research Methodology: 12-18

A] Data Collection 13

B] Methods Of Data Collection 14

C] Questionnaire 15-17

D] Brief Review of Literature 18

3. Background / Concept of Retail Banking 20-28

4. Data Analysis and Interpretations 30-40
5. Conclusions and Suggestions: 42-44
A] Findings 42
B] Conclusions 43
C] Suggestions 44
D] Limitations Of Project

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CHAPTER NO.1

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 INTRODUCTION

 Retail Banking Introduction:

Retail banking is, however, quite board in nature it refers to the dealing of
commercial banks with individual customer, both on liabilities and assets sides of the
balance sheet. Fixed, Current/Saving accounts on the liabilities side and mortgages,
loans on the assets side are the more important of the products offered by banks.
Related ancillary services include depository service, debit card. Retail banking refers
to provision of banking services to individuals and small number of low value
transactions. This is in contrast to wholesale banking where the customers are large,
often multinational companies, governments and government enterprise, and the
financial institution deal in small numbers of high value transactions. The concept is
not new to banks but is now viewed as an important and attractive market segment
that offers opportunities for growth and profits. Retail banking and retail lending are
often used as synonyms but in fact, the latter is just the part of retail banking. In retail
banking all the needs of individual customers are taken care of in a well-integrated
manner.

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 SELECTION OF RETAIL BANKING SERVICES TOPIC

“Retail banking is typical mass-market banking where individual customers use local
branches of larger commercial banks. Services offered include: saving and checking
accounts, mortgages, personal loans, debit cards, credit cards, and so.”

The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable technology,
improved service and banking convenience. Higher penetration of technology and increase
in global literacy levels has set up the expectations of the customer higher than never before.
Increasing use of modern technology has further enhanced reach and accessibility.

The market today gives us a challenge to provide multiple and innovative contemporary
services to the customer through a consolidated window as so to ensure that the bank’s
customer gets “Uniformity and Consistency” of services delivery across time and at every
touch point across all channels. The pace of innovation is accelerating and security threat
has become prime of all electronic transactions. High-cost structure rendering mass-market
servicing is prohibitively expensive.

Present date tech-savvy bankers are now more looking at reduction in their operating costs
by adopting scalable and secure technology thereby reducing the response time to their
customers so as to improve their client base and economies of scale.

The solution lies to market demands and challenges lies in innovation of new offering with
minimum dependence on branches-a multi-channel bank and to eliminate the disadvantage
of an inadequate branch network. Generation of leads to cross sell and creating additional
revenues with utmost customer satisfaction has become focal point worldwide for the
success of a bank.

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 IMPORTANCE OF RETAIL BANKING

1. Providing a secure location for cash deposits: Customers can deposit money and

other important financial items at a retail bank, which is a secure location. They entice
customers to deposit money by promising a higher rate of return and ensuring the
safety of their investment. People are therefore encouraged to put their ideal laying
cash in financial institutions in order to receive interest.

2. Providing credits for spending: These financial institutions provide credit to their

consumers based on their credit scores. Consumer spending is facilitated by retail

banks’ provision of various sorts of loans, including house loans, vehicle loans,
mortgages, and a variety of other products. The availability of credit allows
consumers to spend their future profits now, increasing the economy’s liquidity rate.

3. Finance Management: Customers may manage their money utilising a variety of

bank cards and online utility services through retail banking. They may quickly use
their money to do transactions utilising online payment systems at any moment.
Customers do not need to physically visit their branch and may access their accounts
from the comfort of their own homes.

4. Increases Money Flow in the Economy: It contributes to the efficient generation of

money in the economy. A customer’s loan from one bank becomes a deposit at another
bank. This deposit is now being utilised to extend more credit to a new group of
clients. In this way, the loan and depositing cycle continues, resulting in a sufficient
amount of money in an economy.

5. Assists with Economic Revitalization: The retail bank plays an important part in the

nation’s economic recovery. It enables a better flow of money in the market by

providing individuals with loans at a minimal rate of interest. When individuals have
enough money, they can easily carry out manufacturing activities, which results in
economic growth.
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 OBJECTIVES OF RETAIL BANKING

1. To study retail banking in detail.

2. To study the marketing strategy for attracting the customers to the banking

services.

3. To know various facility provided by The Nashik Merchants Co-

operative Bank Ltd, Bhagur in retail banking sector.

4. To know the customers opinion on The Nashik Merchants Co-operative

Bank Ltd, Bhagur.

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CHAPTER NO. 2

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 RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify

select, process and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall validity
and reliability. The methodology section answers two main questions: How was the data
collected or generated. How was it analyzed? Research methodology describes of the
method and type of research we use. Research comprises of two words “Re” and
“search”. It includes primary source and secondary source of data. Research
methodology is a systematic plan for conducting research or a way to solve a problem.
It is a science of studying how research is to be carried out. Its aims to give the work
plan of research. It is the systematic collection, analysis and interpretation of data to
generate new knowledge and answer a certain question or solve a problem. “Research
is a systematic activity directed towards discovery and the development of an organized
body of knowledge”
Research Methodology is the way to solve the project in Systematic way . The
Research Strategy which forms the basic structure of entire research project is
methodology which helps in identifying the methods to be used. The research
Methodology determines the method Of Collection of data of Project. Research
methodology is the specific procedures or techniques used to identify, select, process,
and analyze information about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study's overall validity and reliability.

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 DATA COLLECTION

Data collection is the process of gathering and measuring information on targeted

variables in an established system, which then enables one to answer relevant questions
and evaluate outcomes. Data collection is a research component in all study fields,
including physical and social sciences, humanities and business. While methods vary
by discipline, the emphasis on ensuring accurate and honest collection remains the
same. The goal for all data collection is to capture quality evidence that allows analysis
to lead to the formulation of convincing and credible answers to the questions that have
been posed. Data collection and validation consists of four steps when it involves taking
a census and seven steps when it involves sampling.
Regardless of the field of or preference for defining data (quantitative or
qualitative), accurate data collection is essential to maintain research integrity. The
selection of appropriate data collection instruments (existing, modified, or newly
developed) and delineated instructions for their correct use reduce the likelihood of
errors.
A formal data collection process is necessary as it ensures that the data gathered
are both defined and accurate. This way, subsequent decisions based on arguments
embodied in the findings are made using valid data. The process provides both a baseline
from which to measure and in certain cases an indication of what to improve.
Data refers to information of facts often researchers understand by data only
numerical figure. It also includes facts non-numerical information qualitative and
quantitative information in research of the data are available the research is half-
complete. Data could be broadly classified as primary data and secondary data they are
also mentioned as sources of data.

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 METHODS OF DATA COLLECTION

There are two types of data collection are as follows:

A. Primary Data Collection Method:
Primary data are information collected by a researcher specifically for a
project. Primary Data is more Reliable and Original in nature as it is directly related
to the research topic.
Primary data can be collected from a number of ways like interview,
Survey, Telephone surveys, Questionnaire, focus groups, Visiting
personally, etc.
The Primary Data Method used for this Project is Personal Visit And
Questionnaire.

B. Secondary Data Collection method:

Secondary Data are the data collected by a party not related to the research
Study but collected these data for some other purpose and at different in the past.
Secondary Data is less reliable and Less Accurate as it is collected by third Party.
Secondary Data is collected from Books, Websites, Newspapers, Magazines,
Various Reports, etc.
The Secondary Data Method used for this project is Websites.

Data Collec on

Primary Data Secondary Data

Collec on Collec on

Interview Ques onnaire Surveys Newspaper Books Websites

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 QUESTIONNAIRE

A questionnaire is a widely used research tool that consists of a set of questions

designed to collect data from respondents. It is a popular data collection method because it
can be administered to a large number of people at once and can provide a wealth of
information on various topics. Questionnaires are used in a variety of fields, including social
sciences, marketing, healthcare, and education.
Questionnaires can be designed in different ways depending on the research question
and the population being studied. They can be structured, where respondents are asked to
choose from a list of pre-defined responses, or unstructured, where they are free to provide
their own answers. Closed-ended questions are a type of structured question that ask
respondents to choose from a set of response options, while open-ended questions allow
respondents to provide more detailed and nuanced answers.
Questionnaires can be administered in various formats, including paper-based, online,
or by telephone. Online questionnaires are becoming increasingly popular due to their ease
of use and cost-effectiveness. They can be easily distributed and completed by respondents,
and the data can be collected and analysed in real-time.
Questionnaires are valuable research tools as they allow researchers to gather data from
a large number of people in a standardized way. However, it is important to ensure that the
questions are valid and reliable, and that the questionnaire is designed in a way that is
appropriate for the research question and population being studied. It is also important to
consider ethical issues, such as informed consent and confidentiality, when designing and
administering questionnaires.

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 QUESTIONNAIRE
Name:

1. Gender:
a) Male
b) Female
2. Age:
a) 18-25 years
b) 26-35 years
c) 36-49 years
d) 50-60 years
e) Above 60 years
3. Which income group do you belong?
a) Less than 3 Lakhs
b) 3 to 8 Lakhs
c) 8 to 10 Lakhs
d) Above 10 Lakh
4. Do you know about retail banking?
a) Yes
b) No
5. What are the services provided by your retail bank?(You can Tick more than one)
a) Current/Savings Account
b) Home /Car/Personal Loan
c) Fixed/Recurring Deposit Facility
d) Card Facility
e) Mobile/Internet Banking
6. Does your Retail Bank staff help while opening a new account?
a) Yes
b) No
c) Sometimes
7. Have you ever encountered any issues with your retail bank? If so, how were they
resolved?
a) Yes, issue was resolved quickly
b) Yes, issue was resolved eventually
c) Yes, issue was not resolved
d) No, never encountered any issues
8. How important are low fees and charges to you when choosing a bank?
a) Very important
b) Somewhat important
c) Neutral
d) Not very important
e) Not at all important

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 9. How often do you use mobile banking apps provided by your retail bank?
a) Almost every day
b) Once or twice a week
c) More than twice a month
d) Rarely
e) Never
10. How satisfied are you with the interest rates offered by your retail bank on
deposits and loans?
a) Very satisfied
b) Somewhat satisfied
c) Neutral
d) Somewhat dissatisfied
e) Very dissatisfied
11. How often do you receive marketing or promotional messages from your
bank?
a) Almost every day
b) Once or twice a week
c) Once or twice a month
d) Rarely
e) Never
12. Have you ever considered switching to a different retail bank? If so, why?
a) Yes, better rates and fees
b) Yes, better customer service
c) Yes, better online or mobile banking services
d) No, never considered switching
13. How long have you been a customer of your current retail bank?
a) Less than a year
b) 1-3 years
c) 3-5 years
d) 5-10 years
e) More than 10 years
14. Have you ever been offered any additional services or products by your retail
bank, such as investment products or insurance?
a) Yes, and I have accepted them
b) Yes, but I have not accepted them
c) No, I have not been offered any additional services or products
15. How likely are you to recommend your retail bank to someone else?
a) Very likely
b) Somewhat likely
c) Neutral
d) Somewhat unlikely
e) Very unlikely

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 BRIEF REVIEW OF LITERATURE

 Bahia, K and J Nantel (2000) - The paper suggested an alternative scale for
measuring service quality in retail banking. The study developed a scale
called as Banking Service Quality Scale which contained factors like
effectiveness and assurance, access, price, tangibles, service portfolio and
reliability. This model was found to be more reliable than SERVQUAL.

 Raul and Ahmed (2005)-The study investigated customer service in public

sector banks in 3 districts in Assam and it was found that customers were
dissatisfied with the management, technology and interactive factors along
with high service charges. Communication gap was the root cause of poor
service and service was different in rural and urban sectors.
 Sharma and Sharma (2006)-The study analyzed customer delight in urban
consumer banking. The study found out that customers were satisfied with
loan facilities, bank environment, routine work procedures, location, interest
rates etc. and were dissatisfied with loan formalities and promotion through
media.

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 CHAPTER NO. 3
BACKGROUND OF RETAIL
BANKING

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 INTRODUCTION OF A BANK

 Definition of Banks:
A bank is a financial institution that accepts deposits from the public and
creates a demand deposit while simultaneously making loans. Lending
activities can be directly performed by the bank or indirectly through capital
markets.
The bank is a financial institution or corporation which deals with
money and its substitutes; it also provides other financial services. Banks
accept deposits and make loans and obtain a profit from the difference in the
interest paid to lenders (depositors) and charged to borrowers, respectively.

 Definitions by different authors and economists:

R.P. Kent says “A bank is an institution, the principal function of which is

collecttheunutilized money of the people and to lend it to others.”.

Jhon Harry says “Bank is an economic institution whose main aim is to

earn profit through exchange of money and credit instrument”

According to Imperial Dictionary “A bank is an establishment which trades

in money, an establishment for deposit,custody, and issue of money and also
for granting loans and discounting bills and facilitating transmission of
remittances from one place to another.”

R.S. Sayers. Says “Banks are institutions whose debts are commonly
accepted insettlement of other people’s debts.”

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 Functions of a Bank

A. Primary Functions: -

Initially, collection of deposits and granting advances used to be the

primary functions of a commercial bank. However, in modem economics
creation of credit and foreign exchange dealings are also treated as primary
functions of a bank.
1. Collection of Deposits: - The most important primary function of a
commercial bank is collection of deposits. These deposits may be in
the form of:
a) Fixed Deposits: - A fixed deposit, also known as term deposit, is one where
a customer keeps a specified amount with the bank for a fixed period. Fixed
deposit holder gets interest on the deposit for that period. However, if he
withdraws before the expiry of the stipulated period, he loses all or a major
part of the interest earned on that deposit. Generally, the rate of interest on
fixed deposits is the highest compared to that on other three forms of
deposits.
b) Savings Bank Deposits: - Savings bank deposits can be opened with a
very small amount. Though money in the savings account can be
withdrawn at will, there are, however, certain limitations on the total
number of withdrawals per week. The rate of interest on this deposit is
normally higher than that of current deposit but less than fixed deposit. By
mobilizing small amounts from large number of individuals through
savings, bank deposits, banks are generally able to gather huge amount of
funds.
c) Current Account Deposits: - It is also known as demand deposit. The
bank opens this account on an initial deposit of Rs. 100 but only after
satisfying itself about the credit worthiness of the customer. There are no
limitations on the amount of deposit and number of withdrawals.
Normally no interest is paid on current deposit.
2. Loans and Advances: - Normally commercial banks grant short-term loans and
advances to1) Business 2) Industry, 3) Agriculture and allied activities, and 4)
Export and import trade.
B. Secondary Functions: -

For the convenience of customers, banks also perform a host of non-

banking functions called secondary functions. These functions can be divided
into two categories: 1) Agency services, and 2) Public utility services.
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1. Agency Services: - Various functions performed by a banker as an
agent on behalf of the customer are called agency services. These
agency services include: collection of cheques /drafts, payments, sale
and purchase of securities, trustee, executor and attorney, and
correspondence.
a) Collections: - Commercial banks take up collection of
promissory notes, cheques, bills, dividends, subscriptions, rents,
etc., on behalf of their customers as agents. The bank charges,
service charges’ for rendering these services to its customers.
b) Payments: - Banks also accept the responsibility to pay
insurance premium, rents, taxes, electricity bills etc. periodically
on behalf of its customers for which they charge commission.
c) Sale and Purchase of Securities: - Customers sometimes approach the
bankers for sale and purchase of their securities. For these services the
banks charge commission.
d) Correspondent: - Bank serves as correspondents, agents of
representatives of their customers. They obtain passports,
traveler tickets, etc.
2. General Services: - In addition to agency services, commercial bank
performs various services useful to the customer. These services include
letters of credit, draft facilities, underwriting, guarantee for deferred
payments, locker facilities, references, business and statistical information
and foreign exchange dealings.
a) Letter of Credit: - Banks issue letters of credit to their customers.
These are useful to traders to buy goods from foreign countries on
credit.
b) Draft Facilities: - Banks issue drafts to customers and enable them
to transfer funds from place of place.
c) Guarantee for Deferred Payments: - Importers may not be in a
position to pay for their imports immediately. Exporters may allow
then to pay in future but only if the payment is guaranteed, in such
cases banks may give guarantee for deferred payments.
d) Referee: - Banks serve as referee to the financial standing, business
reputation and responsibility of their customers.

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 RETAIL BANKING

 Definition: - Retail Banking refers to the offering of bank services to retail customers
instead of institutional customers such as companies, corporations and/or financial
institutions.

 Meaning: - Retail banking, also known as consumer banking or personal

banking, is the provision of services by a bank to the general public, rather than to
companies, corporations or other banks, which are often described as Wholesale
Banking. Banking services which are regarded as retail include provision
of savings and transaction accounts, mortgages, personal loans, debit cards,
and credit cards. Retail banking is also distinguished from investment
banking or commercial banking. It may also refer to a division or department of a
bank which deals with individual customers.
The Retail Banking environment today is changing fast. The changing customer
demographics demands to create a differentiated application based on scalable
technology, improved service and banking convenience. Higher penetration of
technology and increase in global literacy levels has set up the expectations of the
customer higher than never before. Increasing use of modern technology has further
enhanced reach and accessibility.
The market today gives us a challenge to provide multiple and innovative
contemporary services to the customer through a consolidated window as so to ensure
that the bank’s customer gets “Uniformity and Consistency” of services delivery
across time and at every touch point across all channels. The pace of innovation is
accelerating and security threat has become prime of all electronic transactions. High-
cost structure rendering mass-market servicing is prohibitively expensive.

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RETAIL BANKING PRODUCTS AND SERVICES

Retail Banks provide various products and services are as follows:

A. Accounts: -
1. Savings Account - Namco Bank provides different types of savings accounts
for its customers which are specifically designed based on their needs. Some
of the popular savings accounts designed by Namco Bank are Namco Digital
Savings Account, Women Savings Account, Senior Citizen Savings Account,
Regular Savings Account, etc.
2. Current Account - Namco Bank has designed various types of current
accounts depending on the needs of the businesses. Customers can avail a wide
range of banking solutions through these current accounts

B. Loans: -

1. Personal Loan - The bank provides personal loans to its customers ranging from Rs.1
lakh to Rs.40 lakh at attractive interest rates. The loan tenure ranges between 12 to 60
months.
2. Home Loan - Namco Bank provides home loans to salaried and self-employed
individuals at flexible loan tenures and competitive interest rates. Not only this, but
the bank has designed various home loan schemes for those who wish to build or
purchase a house.
3. Car Loan - Namco Bank provides the best car loan schemes ranging from Rs.1 lakh
to Rs.500 lakh to its customers. Apart from this, the bank offers 100% funding
towards on road price of the vehicle for the selected cars.
4. Two-Wheeler Loan - The bank also offers two-wheeler loans to its account holders
ranging from Rs.1 lakh to Rs.25 lakh at flexible tenure up to 60 months. Namco Bank
also provides exclusive loan offers for scooters, bikes, and superbikes.
5. Loan Against Property - Namco Bank sanctions loans against properties like
residential, commercial, warehouse, industrial, and school properties for a tenure up
to 15 years. The customers can avail the loan with minimal documentation.
6. Gold Loan - Customers can avail gold loans from Namco Bank with attractive
interest rates as well as flexible repayment options. The gold loan ranges between
Rs.25,000 to Rs.50 lakh with a tenure till three years. The loan amount will be
disbursed by the bank on the same day.

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C. Deposits: -

1. Fixed Deposit - Namco Bank offers fixed deposit schemes to its account holders so
that they can maximize the surplus amount through dynamic interest rates. The fixed
deposit tenure ranges between six months to 36 months.
2. Recurring Deposit - Namco Bank has also designed recurring deposits schemes for
its customers which help them to invest a part of their earnings on a monthly basis.
The interest rate of recurring deposits varies depending on the amount and tenure.

D. Banking Services: -

1. Balance Enquiry - The account holders of Namco Bank can get the balance enquiry
facility through mobile banking, net banking, passbook, SMS banking, Automated
Teller Machine (ATM), and missed call facility.
2. Internet Banking - Namco Bank offers an internet banking facility to its customers
using which they can avail different types of services like online booking, fund
transfer, paying bills, and balance enquiry.
3. Mobile Banking - Namco Bank account holders can enjoy all the banking facilities
through mobile banking. The mobile banking facilities include balance enquiry, fund
transfer, online payment, etc.

E. Card Facility: -

1. Credit Card - Namco Bank has designed different types of credit cards which have
been introduced with the aim of providing various benefits and rewards like discount
coupons on travel, entertainment, dining, etc.
2. Debit Card - Namco Bank debit cards are featured with advanced spending and
withdrawal limits along with value added services.

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BENEFITS OF RETAIL BANKING

1. The deposits from retail customers are stable and form core deposits. Such deposits
are interest insensitive with less bargaining for additional interest. Also, they
constitute low-cost funds for the banks.
2. An effective customer relationship management helps in developing a vast and strong
customer base.
3. Retail banking also assists in increasing subsidiary businesses of the banks like
insurance, etc.
4. It contributes to the economic development and economic revival of the country,
through increased production.
5. Helps in improving the lifestyle of consumers by providing loans at affordable rate of
interest.

LIMITATIONS OF RETAIL BANKING

1. Customers now-a-days prefer net banking to branch banking. The banks that are slow
in introducing technology-based products, are finding it difficult to retain the
customers who wish to opt for net banking.
2. Customers are attracted towards other financial products like mutual funds etc.
3. Though banks are investing heavily in technology, they are not able to exploit the
same to the full extent.
4. Major disadvantages are monitoring and follow up of huge volume of loan accounts
inducing banks to spend heavily in human resource department.
5. Long term loans like housing loan due to its long repayment term in the absence of
proper follow-up, can become NPAs.
6. The volume of amount borrowed by a single customer is very low compared to
wholesale banking. This does not allow banks to exploit the advantage of earning huge
profits from single customer as in case of wholesale banking.

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STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

1. Constant product innovation to match the requirement of the customer segment:

The customer database available with the bank’s is the best source of their
demographic and financial information and can be used by the banks for targeting
certain customer segments for new or modified product. The banks should come out
with new products in the area of securities, mutual funds and insurance.
2. Quality service and quickness in delivery: - As most of the banks are offering retail
products of similar nature, the customers can Easily switchover to the one, which
offers better service at comparatively lower costs. The Quality switchover to the one,
which offers better service at comparatively lower costs. The quality of switchover
to the one, which offers better service at comparatively lower costs. The quality of
service that banks offer and the experience that clients have, matter the most.
Hence, to retain the customers, banks have to come out with competitive products
satisfying the desires of the customers at the click of a button.
3. Introduction to new delivery channels: - Retail customers like to interface with
their bank through multiple channels. Therefore, banks should try to give high quality
service across all service channels like branches. Internet, ATM, etc.
4. Detail Market research: - Banks may go for detail market research, which will help
them in knowing what their competitors are offering to their clients. This will enable
them to have an edge over their competitors and increase their share in retail banking
pie by offering better products and services.
5. Cross-selling of products: - PSBs have an added advantage of having a wide
network of branches, which gives them an opportunity to sell third-party products
through these branches.
6. Business process outsourcing: - Outsourcing of requirement would not only save
cost and time but would help the banks in concentrating on the core business area.
Bank can devote more time for marketing, customer service and brand building. For
example, Management of ATMs can be outsourced. This will save the banks from
dealing with the intricacies of technology.

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 FUTURE OF RETAIL BANKING

Retail banking has significant past and glorious future over the years. Retail
banking has proved as an effective tool not only to improve the bottom lines of the
banks concerned but also to significantly contribute to the development of the
individual consumers availing the services or products in particular and to the overall
development of the society in general with the needs of the consumers ever
multiplying. There is definitely a vast scope for the furtherance of the retail banking
business.

The society is made of the individuals and the environment surrounding him. As
development takes place in the society, the needs of the people grow faster than ever.
The wealth creation and its professional management are yet another distinct
advantage the society or nation can derive from Retail Banking. The depth of the
untapped resources in the retail segment is not yet measured. These resources could
be channelized for nation building.

On the whole, looking ahead, the prospects of retail banking are brighter than ever
and the bankers have to give continued thrust to this area of banking. Thus, with the
consumers ever multiplying needs there is definitely a vast scope for the furtherance of
the retail banking business. Operationally, there is a possibility that technology go
beyond nearly reducing the cost & improving the quality of current products. It may
prove possible, even profitable, to combine in new ways.

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 CHAPTER NO. 04
DATA ANALYSIS
AND
INTERPRETATIONS

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 DATA ANALYSIS AND INTERPRETATIONS

Data analysis is the process of systematically examining and interpreting data using
statistical and analytical methods to extract meaningful insights and knowledge from raw
data. The purpose of data analysis is to make sense of large amounts of data, uncover
patterns, trends, and relationships, and use this information to support decision-making.

Data interpretation, on the other hand, is the process of making sense of the results
of data analysis. It involves taking the insights and knowledge gained from analysing data
and using them to draw conclusions and make decisions. Data interpretation requires a deep
understanding of the context in which the data was collected, as well as an ability to apply
critical thinking skills to make informed judgments.

Together, data analysis and interpretation are critical components of data-driven

decision-making. They allow organizations and individuals to make informed decisions
based on data-driven insights, rather than relying on intuition or assumptions.

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1. Gender: Table No.1
Gender No. of Respondents Percentage
Male 18 60%
Female 12 40%
Total 30 100%

Chart No.1

Gender

40% Male
60%
Female

Interpretation:
From the above pie chart, we find that 60% are Male and 40% are Female.

2. Age group of surveyed respondents:

Table No.2
Age Group No. of Respondents Percentage
18-25 years 3 10%
26-35 years 9 30%
36-49 years 6 20%
50-60 years 9 30%
Above 60 years 3 10%
Total 30 100%
Chart No.2
Age Group

18-25 years
26-35 years
36-49 years
50-60 years
Above 60 years

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Interpretation:
From the above pie chart, we find that 10% of the respondents fall in the age group of
18-25years, 30% fall in the age group of 26-35years, and 20% fall in the age group of 36-
49 years, and 30% respondent’s age are 50-60 years, and 10% respondents age are above
60 years.

3. Income Group: Table No.3

Annual Income No. of Respondents Percentage
Less than 3 Lakhs 6 20%
Between 3 to 8 Lakhs 12 40%
Between 8 to 10 Lakhs 9 30%
Above 10 Lakhs 3 10%
Total 30 100%
Chart No.3

Income Group

Less than 3 Lakhs Between 3 to 8 Lakhs

Between 8 to 10 Lakhs Above 10 Lakhs
Interpretation:
From the above table and graph it can be seen that
20% respondent’s annual income is less than 3 lacs.
40% respondent’s annual income is between 3 to 8 lacs.
30% respondent’s annual income is between 8 to 10 lacs.
10% respondent’s annual income is more than 10 lacs.

4. Do you know retail banking:

Table No.4
Options No. of Percentage
respondents
Yes 21 70%
No 9 30%
Total 30 100%

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 Chart No.4

Retail Banking

Yes
No

Interpretation:
From the above pie chart, we see that 70% know about retail banking and 30% don’t
know about retail banking.

5. Services provided by retail bank: Table No.5

Services Respondents
Current/savings account 30
Home/Car/Personal Loan 30
Fixed/Recurring deposits 25
Card Facility 30
Mobile/Internet banking 26

Chart No.5

Respondents Respondents

31
30
29
28
27
26
25
24
23
22
Current/Savings Home/Car/Personal Fixed/recurring Card facility Mobile/internet
account Loan deposits facility

Interpretation:
From the above Column chart, we see that 30 respondents have current/savings account,
30 respondents have home/car/personal loan, 25 respondents have fixed/recurring deposits,
30 respondents have card facility, 26 respondents have mobile/internet banking services in
their retail banks.

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 6. Does your Retail Bank staff help while opening a new account:
Table No.6
Options No. of Respondents Percentage
Yes 21 70%
No 6 20%
Sometimes 3 10%
Total 30 100%
Chart No.6

Staff Help

Yes No Sometimes
Interpretation:
From the above pie chart, we see that 70% agrees that retail bank staff helps, 20% says
that retail bank staff doesn’t help and 10% says in some cases retail bank staff helps.

7. Issues with retail bank and its rectification:

Table No.7
Options No. of Respondents Percentage
Yes, issue was resolved 18 60%
quickly
Yes, issue was resolved 6 20%
eventually
Yes, issue was not 3 10%
resolved
No, never encountered 3 10%
any issues
Total 30 100%

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 Chart No.7

Isuues and its rectification

issues resolved quickly issues resolved eventually

issues are not resolved no issues encountered
Interpretation:
From the above pie chart, we can see that 60% respondents’ issues have been resolved
quickly, 20% respondents’ issues have been resolved eventually, 10% respondents’ issues
are not resolved, and 10% respondents doesn’t encounter any issues.

8. Importance of low fees and charges when choosing a retail bank:

Table No.8
Options No. of Respondents Percentage
Very important 18 60%
Somewhat important 6 20%
Neutral 3 10%
Not very important 3 10%
Not at all important 0 0%
Total 30 100%
Chart No.8
Importance of Low fees and charges

Very Important Somewhat Important

Neutral Not very Important
Interpretation:
From the above pie chart, we can see that 60% consider low fees and charges very
important, 20% consider low fees and charges less important, 10% consider low fees and
charges neutral, and 10% consider low fees and charges not very important.

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9. Usage of mobile banking apps by the retail bank:
Table No.9
Options No. of Percentage
Respondents
Almost every day 12 40%
Once or twice a 9 30%
week
More than twice a 6 20%
month
Rarely 3 10%
Never 0 0%
Total 30 100%
Chart No.9
Usage of Mobile banking

Almost every day Once or twice a week

More than twice a month Rarely

Interpretation:
From the above pie chart, we can see that 40% uses mobile banking app almost every
day, 30% uses mobile banking app once or twice a week, 20% uses mobile banking app
more than twice a month and 10% uses mobile banking app rarely.

10. Satisfaction of interest rates on deposits and loans:

Table No.10
Options No. of Respondents Percentage
Very Satisfied 21 70%
Somewhat satisfied 6 20%
Neutral 3 10%
Somewhat dissatisfied 0 0%
Not at all satisfied 0 0%
Total 30 100%

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 Chart No.10
Satisfaction of Interest rates on deposits
and loans

Very Satisfied Somewhat Satisfied Neutral

Interpretation:
From the above pie chart, we can see that 70% are very satisfied with the interest rates
on deposits and loans, 20% are somewhat satisfied with the interest rates on deposits and
loans and 10% are neutral with the interest rates on deposits and loans.

11. Receiving marketing/promotional messages:

Table No.11
Options No. of Respondents Percentage
Almost every day 3 10%
Once or twice a week 9 30%
More than twice a month 12 40%
Rarely 6 20%
Never 0 0%
Total 30 100%
Chart No.11
Marketing/Promotional messages

Almost evry day Once or twice a week

Interpretation: More tha twice a month Rarely

From the above pie chart, we can see that 10% receive marketing/promotional messages
almost every day, 30% receive marketing/promotional messages once or twice a week,
40% receive marketing/promotional messages more than twice a month and 20% receive
marketing/promotional messages rarely.

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 12. Switching to a different retail bank:
Table No.12
Options No. of Respondents Percentage
Yes, better rates and fees 9 30%
Yes, better customer 6 20%
service
Yes, online/mobile 3 10%
banking service
Never considered 12 40%
switching
Total 30 100%
Chart No.12
Switching to a different retail bank

Better rates and fees Better customer service

Online/mobile banking service Never considered switching
Interpretation:
From the above pie chart, we can see that 30% consider switching retail bank due to better
rates and fees, 20% consider switching retail bank due to better customer service, 10%
consider switching retail bank due better online/mobile banking service and 40% never
consider switching their retail bank.

13. Duration of customer having account in their retail bank:

Table No.13
Options No. of Respondents Percentage
Less than a year 3 10%
1-3 years 6 20%
3-5 years 12 40%
5-10years 6 20%
More than 10 years 3 10%
Total 30 100%

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 Chart No.13
Duration of customer having account in
their retail bank

Less than a year 1-3 years 3-5 years

5-10 years More than10 years
Interpretation:
From the above pie chart, we can see that 10% have account in retail bank for less than a
year, 20% have account in retail bank between 1-3 years, 40% have account in retail bank
between 3-5 years, 20% have account in retail bank between 5-10 years and 10% have
account in retail bank for more than 10 years.

14. Offering additional services like insurance/investment products and its

acceptance:
Table No.14
Options No. of Respondents Percentage
Yes, and I have accepted 18 60%
them
Yes, but I have not accepted 9 30%
them
No, I have not been offered 3 10%
any additional services
Total 30 100%
Chart No.14
Offering additional services like
insurance/investment products

Yes and accepted them

Yes, but not accepted them
Not been offered any additional services/products
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 Interpretation:
From the above pie chart, we can see that 60% have offered additional services and have
accepted them, 30% have offered additional services but not accepted them and 10% have
not been offered any additional services.

15. Recommendation of your retail banks to others:

Table No.15
Options No. of Respondents Percentage
Very Likely 15 50%
Somewhat Likely 6 20%
Neutral 6 20%
Somewhat unlikely 3 10%
Very unlikely 0 0%
Total 30 100%
Chart No.15
Recommendation of your retail bank to
others

Very likely Somewhat likely Neutral Somewhat unlikely

Interpretation:
From the above pie chart, we can see that 50% very likely recommend their retail bank to
others, 20% somewhat likely recommend their retail bank to others, 20% remain neutral
for recommending their retail bank to others and 10% somewhat unlikely recommend their
retail bank to others.

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CHAPTER NO. 05
CONCLUSIONS
AND
SUGGESSTIONS

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 FINDINGS

1. As the Nashik Merchant Co-operative Bank Ltd. is a scheduled Bank, so the

interest rates on Fixed Deposits are more in comparison with Nationalize
Banks. So, the customers are attracted easily.
2. Due to quality of Services Provided and Personalised Relations there is
increase the number of customers of the Bank.
3. The interest rates on loan like Personal loan, home loan is less than other Banks
as well as Nationalize Banks. So, people are easily attracted towards the loan.
4. Loans are Recovered at time to time and NPA of the bank are 0 %. Hence
overall growth of bank is good in condition.
5. Bank offer special interest rates on fixed deposits to senior citizen, thereby
resulting in more earnings to the customers.

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 CONCLUSION

 Retail Banking refers to the offering of bank services to retail customers instead of
institutional customers such as companies, corporations and/or financial institutions.
 Nashik Merchant Co-operative Bank Ltd, Bhagur, is a cooperative bank based in
Bhagur, a town in the Nashik district of Maharashtra, India. The bank has been serving
its customers since 1964 and provides a range of retail banking services, including
deposits, loans, and other financial products.
 The bank has established a strong presence in the local community and is known for
its customer-centric approach. Its focus on meeting the financial needs of the local
community has helped it build a loyal customer base.
 However, like all banks, Nashik Merchant Co-operative Bank Ltd, Bhagur, faces
challenges, including increased competition, regulatory pressures, and changing
customer expectations.
 To remain competitive and continue to serve its customers effectively, the bank must
adapt to changing market conditions and continue to innovate in the products and
services it offers.

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 SUGGESTIONS

 Technology can help the bank to improve its services, reduce costs, and increase
efficiency. The bank should consider investing in modern banking technology, such
as online banking, mobile banking, and digital payment systems, to provide customers
with a more convenient banking experience.
 The bank should consider expanding its product offerings to meet the changing needs
of its customers. For example, it could introduce new loan products, savings schemes,
or investment products to attract new customers and retain existing ones.
 Customer service is a key differentiator in the banking industry. The bank should
focus on providing excellent customer service to its customers. This can include
training staff to be more attentive to customers' needs, providing personalized service,
and being responsive to customer feedback.
 The bank should invest in marketing and branding to improve its visibility and attract
new customers. This can include advertising, social media, and other promotional
activities.
 The bank should engage with the local community by participating in local events
and supporting local causes. This can help to build brand loyalty and enhance the
bank's reputation in the community.

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